AMD 2006 Annual Report Download - page 191

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EXECUTION VERSION
SECTION 5 – AMD FUNDING CONTRIBUTIONS AND ROYALTY PAYMENTS
5.1 AMD shall pay to IBM for the Term of this Agreement for its respective share of the costs of the Process Development Projects; such payments shall be
made as follows (in millions of US dollars):
1Q03 2Q 3Q 4Q 1Q04 2Q 3Q 4Q 1Q05 2Q 3Q 4Q
AMD *** *** *** *** *** *** *** *** *** *** *** ***
* Notwithstanding the foregoing, if the Commencement Date is in the 3rd calendar quarter of 2005, AMD will pay to IBM $*** (*** dollars) on or before
September 30, 2005. Such payment will not be considered an overdue payment pursuant to Section 5.2. If the Commencement Date is in the 4th calendar
quarter of 2005, AMD’s 3 rd quarter 2005 payment above will be reduced to $*** (*** dollars), and the 4th quarter 2005 payment will be increased to $***
(*** dollars), which amount will be payable on or before October 31, 2005. Such payment will not be considered an overdue payment pursuant to
Section 5.2. For avoidance of doubt if the Commencement Date is in the 3rd quarter of 2005, payments in the 4th quarter of 2005 and later will be made in
accordance with Section 5.1 without this asterisked provision. For further avoidance of doubt if the Commencement Date is in the 4th quarter of 2005,
payments in 2006 and later will be made in accordance with Section 5.1 without this asterisked provision.
1Q06 2Q 3Q 4Q 1Q07 2Q 3Q 4Q 1Q08 2Q
AMD
(4 total partners) *** *** *** *** *** *** *** *** *** ***
AMD
(3 total partners) *** *** *** *** *** *** *** *** *** ***
AMD
(2 total partners) *** *** *** *** *** *** *** *** *** ***
3Q08 4Q08 1Q09 2Q 3Q 4Q 1Q10 2Q 3Q 4Q 1Q11 2Q 3Q 4Q
AMD
(4 total partners) *** *** *** *** *** *** *** *** *** *** *** *** *** ***
AMD
(3 total partners) *** *** *** *** *** *** *** *** *** *** *** *** *** ***
AMD
(2 total partners) *** *** *** *** *** *** *** *** *** *** *** *** *** ***
Through the term of this Agreement, AMD will pay IBM according to the tables above, where the applicable row of the table will be determined based
upon the total number of partners, including IBM and AMD, participating in S Process Development in the Development Facilities. If the number of
partners changes during the Term, then the new
***Confidential Treatment Requested.
Third Amendment and Restatement of “S” Process Development Agreement between AMD and IBM
IBM - AMD Confidential Page 23 of 90
Source: ADVANCED MICRO DEVIC, 10-K, March 01, 2007