AMD 2004 Annual Report Download - page 283

“Forecast”) setting forth AMD’s projected Product needs for each of the five (5) Quarters following such Quarter (“Forecasted Product Requirements”). Each
Forecast will be organized by FASL on a Technology-by-Technology basis, and will contain a forecast for each Product within a particular Technology. AMD’s
initial Forecast is attached hereto asSchedule 4.1.
4.2 Short-Supply Guaranteed Allocation.
4.2.1Allocation. Subject to Section 4.2.3 below, in the event that, in any Quarter, FASL does not produce enough wafers within a Technology to
meet the total orders for Product falling within such Technology issued by AMD and Fujitsu, FASL will allocate its wafer fabrication and assembly, test and
package Production Volume for such Technology as follows:
(a) to AMD, **** of Production Volume for such Products for such Quarter;
(b) to Fujitsu, **** of Production Volume for such Products for such Quarter; and
(c) such **** of Production Volume for the relevant Technology to either AMD or Fujitsu or otherwise, as reasonably **** (**** to the
interests of either AMD or Fujitsu).
4.2.2Adjustments Based on ****. In the event that **** is **** as set forth below, then, in determining **** for purposes of Section 4.2.1, the
**** in Section 4.2.1(b) shall be ****:
(a) in the event **** is **** to or **** than **** and ****, the **** of Production Volume in Section 4.2.1(b) shall be **** to ****;
(b) in the event **** is **** to or **** than **** and ****, the **** of Production Volume in Section 4.2.1(b) shall be ****; and
(c) in the event **** is ****, the **** Production Volume in Section 4.2.1(b) shall be **** to ****.
4.2.3Adjustments Based on ****. If (a) in any Quarter (for purposes hereof, “Q1”), FASL does not produce enough Product within a Technology to
meet the total orders for Product falling within such Technology issued by AMD and Fujitsu, and (b) in the ****, AMD purchased Products falling within such
Technology representing, as a ****, an amount **** in accordance with Sections 4.2.1 and 4.2.2 (unless such failure to purchase resulted from FASL’s inability
to provide AMD with the ****), then, in such event:
(a) For such Quarter (Q1), FASL will **** AMD its wafer fabrication and assembly, test and package Production Volume for such
Technology, the ****
12
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 the exhibit has been filed separately with the Securities and Exchange Commission.
Source: ADVANCED MICRO DEVIC, 10-K, March 01, 2005