AMD 2004 Annual Report Download - page 261

6. ROYALTIES
6.1 Basic Royalty Payments. In consideration of the licenses set forth in Section 3.2 with respect to Parent Licensed Patents other than Coatue Licensed
Patents, FASL shall pay to Parent the following royalty payments (each a “Basic Royalty Payment”):
6.1.1 During the four (4) year period commencing on the Effective Date, **** of Net Sales of Licensed Products;
6.1.2 During the four (4) year period commencing on the fourth anniversary of the Effective Date, **** of Net Sales of Licensed Products; and
6.1.3 During the two (2) year period commencing on the eighth anniversary of the Effective Date, **** of Net Sales of Licensed Products.
FASL shall not owe any royalties on Net Sales of Licensed Products occurring on or after the tenth anniversary of the Effective Date in consideration of the
license hereunder to Parent Licensed Patents.
6.2 Coatue Royalty Payments. In consideration of the licenses set forth in Section 3.2 with respect to Coatue Licensed Patents and the license set forth in
Section 5 of the Intellectual Property Contribution and Ancillary Matters Agreement, in addition to Basic Royalty Payments as set forth in Section 6.1, FASL
shall pay to Parent during the period commencing volume shipment of FASL’s Coatue Product(s) and terminating on the third anniversary thereof, **** of Net
Sales of Coatue Products (each a “Coatue Royalty Payment”). FASL shall not owe any royalties on Net Sales of Coatue Products, other than Basic Royalty
Payments as set forth in Section 6.1, occurring on or after the third anniversary of such first customer shipment in consideration of the license hereunder to
Coatue Licensed Patents.
6.3 Reports. FASL shall: (a) keep accurate and detailed accounts and records of all Royalty Payments due under this Agreement; and (b) within sixty (60)
days after the last day of each Semi-Annual Period, deliver to Parent a statement of all Royalty Payments due to Parent, if any, during such Semi-Annual Period.
6.4 Payment Terms. Royalty Payments for Net Sales occurring during each Semi-Annual Period shall be made within sixty (60) days from the end of
such Semi-Annual Period. All amounts payable by FASL to Parent shall be paid by wire transfer of U.S. Dollars in immediately available funds to such financial
institution and account number as Parent may designate in writing to FASL.
6.5 Exchange Rates. In the event of any Net Sales from the sale or other distribution of a Licensed Product by FASL in any currency other than U.S.
Dollars, for purposes of determining the Royalty Payment, FASL shall use the Exchange Rate in effect on the last day of the month in which such sale or other
distribution was effected.
6.6 Late Payments. If FASL fails to make any payment on or before the required payment date, FASL shall be liable for interest on such payment, for the
period commencing
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Confidential treatment has been requested for portions of this exhibit. The copy filed herewith omits the information subject to the confidentiality request.
Omissions are designated as ****. A complete version of this exhibit has been filed separately with the Securities and Exchange Commission.
Source: ADVANCED MICRO DEVIC, 10-K, March 01, 2005