AMD 2002 Annual Report Download - page 255

5.7 If IBM and AMD agree to continue “S” Process development in accordance with Section 8.8 (below), AMD will pay IBM ***. The above amounts
will be due in equal quarterly installments commencing with the date of the extension. Section 5.2 and the payment procedures of Section 5.4 will
apply to these payments.
5.8 If AMD becomes licensed under Section 8.9, below, AMD agrees to pay IBM as follows: if IBM does not offer a first extension to this Agreement
that is consistent with Section 8.8, then AMD will pay IBM $*** for each of the ***, if AMD does not request a first extension to this Agreement or
if the Parties fail to reach agreement on the first extension, AMD will pay IBM $ *** for each ***, provided however, if one of the ***, AMD will
pay IBM $***. If the Parties had agreed to a first extension: and if IBM does not offer a second extension to this Agreement that is consistent with
Section 8.8, then AMD will pay IBM $*** for each of the ***, if AMD does not request a second extension to this Agreement or if the Parties fail
to reach agreement on the second extension, AMD will pay IBM $*** each ***, provided however, if one of the ***, AMD will pay IBM $***.
The above amounts will be due upon disclosure to the *** and only if the date of disclosure is within the confidentiality period for the applicable
technology. Section 5.2 and the payment procedures of Section 5.4 will apply to these payments.
SECTION 6—INSURANCE, RESPONSIBILITY FOR RESULTS AND WARRANTIES
6.1 Although the Parties will use commercially reasonable efforts in performing the Process Development Projects, the Parties acknowledge that the
results of the development work to be performed are uncertain and cannot be guaranteed by any Party. The risk of success or failure of the Process
Development Projects shall be shared by all the Parties equally. If a Party has exerted such efforts in the performance of its responsibilities under a
Process Development Project, the failure to achieve performance objectives or schedules within a Process Development Project shall not constitute a
breach of this Agreement.
6.2 All items furnished by a Party to the Process Development Projects will be produced or provided by said Party in the same manner as it produces or
provides such items for its own use and will be furnished on an “AS IS” BASIS WITHOUT WARRANTY OF ANY KIND, including, without
limitation, i) ANY WARRANTY THAT THE SPECIFIC RESULTS WILL BE FREE OF THIRD PARTY CLAIMS OF INFRINGEMENT OF
PATENTS, COPYRIGHTS, TRADE SECRET, OR MASK WORK RIGHTS and ii) ANY IMPLIED WARRANTIES OR TERMS OF
MERCHANTABILITY AND FITNESS OR USE FOR A PARTICULAR PURPOSE.
*** Confidential information omitted and filed separately with the Securities and Exchange Commission.
Source: ADVANCED MICRO DEVIC, 10-K, March 14, 2003