AMD 2000 Annual Report Download - page 340

"AV" means the Actual Volume for that Month;
"TC" is AMD Saxonia's Total Costs for or in respect of that Month.
Section 3.04. Payment in First Eight Periods to reflect certain Excess
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Costs or Costs Savings.
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(a) In the first eight Periods only, one-eighth the amount of any (i)
Excess Start-up Costs shall be paid by AMD Holding to AMD Saxonia no later than
30 days after the end of each such Period, and (ii) Start-up Cost Savings shall
be credited by AMD Saxonia against amounts owed or to be owed by AMD Holding
under this Agreement.
(b) The amount of Excess Start-up Costs and Start-up Cost Savings shall be
determined in any event not later than 60 days after the Effective Date. In the
event Start-up Costs have not been conclusively determined prior to the date 30
days after the end of the first Period, such Start-up Costs shall be estimated
for purposes of the payment contemplated for that first Period under Section
3.04(a), and the payment required under Section 3.04(a) for the next Period
shall be increased or decreased by the shortfall or excess, respectively, in the
amount of the payment for that first Period from the amount it would have been
if it had been made based on actual instead of estimated Start-up Costs.
Section 3.05. Advance Payment Adjustment to Reimburse Total Costs in
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Certain Months during which no Wafers are Shipped. For any Month after the
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Effective Date during which no Products are Shipped, promptly after the end but
in any event not later than 30 days after such Month, AMD Holding shall make an
advance payment in the amount of AMD Saxonia's Total Costs (without giving
effect to clause (h) of the definition thereof) during that Month multiplied by
the Applicable Percentage for that Month (the "Advance Payment Adjustment
Amount") against the first Wafers Shipped in the succeeding Month in which
Wafers are Shipped.
Section 3.06. Intentionally Deleted.
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Section 3.07. Annual Compensation for Certain Administrative Costs. AMD
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Holding shall compensate AMD Saxonia for any administrative costs, including
without limitation bookkeeping, legal and accounting costs, incurred by AMD
Saxonia from time to time for the direct benefit of AMD Holding, as follows.
The parties agree that the amount payable by AMD Holding to AMD Saxonia under
this Section 3.07 shall be DM 50,000 per annum for each Fiscal Year (and pro-
rated for any portion of a Fiscal Year) from the date hereof until the Effective
Date, payable no later than 30 days after the end of each Fiscal Year. In
addition, AMD Holding shall compensate AMD Saxonia for any such costs,
determined in accordance with German GAAP, incurred by AMD Saxonia on or after
the Effective Date, plus a surcharge thereon of 7.5% (the "Surcharge"), no later
than 30 days after the end of each Fiscal Year.
Section 3.08. Intentionally Deleted.
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Source: ADVANCED MICRO DEVIC, 10-K405, March 20, 2001