Exhibit 10.2

 

EXCHANGE AGREEMENT

 

This Exchange Agreement (the “Agreement”) is made as of December 15, 2005, by
and among Spansion Inc., a Delaware corporation (the “Corporation”), Spansion
LLC, a Delaware limited liability company (the “LLC”), Advanced Micro Devices,
Inc., a Delaware corporation (“AMD”), AMD Investments, Inc., a Delaware
corporation and an indirect wholly-owned subsidiary of AMD (“AMD Investments”),
Fujitsu Limited, a corporation organized under the laws of Japan (“Fujitsu” and
together with AMD, the “Parents”) and Spansion Technology Inc. (formerly Fujitsu
Microelectronics Holding, Inc.), a Delaware corporation and wholly-owned
subsidiary of the Corporation (“STI”).

 

RECITALS

 

WHEREAS, AMD will, immediately prior to the closing of the initial public
offering of Class A Common Stock of the Corporation (the “IPO”), contribute to
AMD (U.S.) Holdings, Inc. the right to receive $60,000,000 (the “AMD Contributed
Assets”) of the principal amount owing to it under that certain Promissory Note
between AMD and the LLC dated June 30, 2003;

 

WHEREAS, AMD (U.S.) Holdings, Inc. will, immediately prior to the closing of the
IPO, contribute the AMD Contributed Assets to AMD Investments;

 

WHEREAS, in connection with the IPO, AMD Investments desires to contribute the
AMD Contributed Assets to the Corporation, and Fujitsu desires to contribute to
the Corporation the right to receive $40,000,000 (the “Fujitsu Contributed
Assets”) of the principal amount owing to it under that certain Loan Agreement
(the “Loan Agreement”) between Fujitsu and STI dated as of December 13, 2005;

 

WHEREAS, in exchange for AMD Investments’ contribution of the AMD Contributed
Assets, the Corporation shall issue to AMD Investments 5,000,000 shares of
Class A Common Stock (which is the number of shares equal to $60,000,000 divided
by the initial public offering price of the Corporation’s Class A Common Stock,
rounded down to the nearest whole share); and

 

WHEREAS, in exchange for Fujitsu’s contribution of the Fujitsu Contributed
Assets, the Corporation shall issue to Fujitsu 3,333,333 shares of Class D
Common Stock (which is the number of shares equal to $40,000,000 divided by the
initial public offering price of the Corporation’s Class A Common Stock, rounded
down to the nearest whole share).

 

NOW, THEREFORE, in consideration of the foregoing and the mutual promises herein
contained, and for good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, the parties agree as follows:

 

AGREEMENT

 

1. Exchange. Immediately prior to the closing of the IPO:

 

(a) AMD Investments shall contribute to the Corporation all right, title and
interest in the AMD Contributed Assets;

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(b) STI shall transfer to the Corporation the obligation to pay $40,000,000 of
the principal amount owing to Fujitsu under the Loan Agreement.

 

(c) Fujitsu shall contribute to the Corporation all right, title and interest in
the Fujitsu Contributed Assets;

 

(d) the Corporation shall issue to AMD Investments 5,000,000 shares of Class A
Common Stock;

 

(e) the Corporation shall issue to Fujitsu 3,333,333 shares of Class D Common
Stock; and

 

(f) the Corporation shall contribute the AMD Contributed Assets to the LLC, and
the Corporation’s capital account balance in the LLC shall be increased by
$60,000,000.

 

2. Representation and Warranties of the Corporation. The Corporation represents
and warrants to each of the Parents as follows:

 

(a) Organization; Good Standing; Qualification. The Corporation (i) is a
corporation duly organized and validly existing under, and by virtue of, the
laws of the State of Delaware and is in good standing under such laws, (ii) has
the requisite corporate power and corporate authority to own and operate its
properties and assets, and to carry on its business as presently conducted and
as proposed to be conducted and (iii) is in good standing and qualified to do
business as a foreign corporation in every jurisdiction where the failure to so
qualify would have a material adverse effect on its business, properties,
financial condition, results of operations or prospects.

 

(b) Authority. The Corporation has all requisite corporate power and corporate
authority to enter into this Agreement and to issue the Class A Common Stock and
Class D Common Stock hereunder and to carry out and perform its obligations
under the terms of this Agreement.

 

(c) Authorization.

 

(i) The execution, delivery and performance by the Corporation of this Agreement
and the transactions contemplated hereby have been duly and validly authorized
by the Corporation. No other corporate act or proceeding on the part of the
Corporation, its board of directors, or its stockholders is necessary to
authorize the execution, delivery or performance by the Corporation of this
Agreement. This Agreement constitutes a valid and binding obligation of the
Corporation, enforceable against it in accordance with its terms except (A) as
limited by applicable bankruptcy, insolvency, reorganization, moratorium, and
other laws of general application affecting enforcement of creditors’ rights
generally, and (B) as limited by laws relating to the availability of specific
performance, injunctive relief, or other equitable remedies.

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(ii) Except as provided in the Certificate of Incorporation and the Stockholders
Agreement to be dated as of December 21, 2005 by and among AMD, Fujitsu, AMD
Investments and the Corporation (the “Stockholders Agreement”), the Common Stock
when issued in compliance with the provisions of this Agreement, will be duly
and validly issued, fully paid and nonassessable, and will be free of any liens
or encumbrances or preemptive or other similar rights of the stockholders of the
Corporation or others; provided, however, that the Common Stock may be subject
to restrictions on transfer under state and/or federal securities laws, as set
forth herein or otherwise required by such laws at the time a transfer is
proposed.

 

(d) Consents. No consent, approval or authorization of, or designation or filing
with, any governmental authority or other third party on the part of the
Corporation is required in connection with the valid execution and delivery of
this Agreement.

 

(e) Capitalization. The authorized capital stock of the Corporation consists of
(i) 714,999,998 shares of Class A common stock, par value of $0.001 per share,
(ii) one share of Class B common stock, par value of $0.001 per share, (iii) one
share of Class C common stock, par value of $0.001 per share, (iv) 35,000,000
shares of Class D common stock, par value of $0.001 per share, and
(v) 50,000,000 shares of preferred stock, par value $0.001 per share.

 

3. Representations and Warranties of AMD and AMD Investments. AMD Investments
and AMD represent and warrant to Fujitsu and the Corporation as follows:

 

(a) Organization; Good Standing; Qualification. AMD Investments (i) is a
corporation duly organized and validly existing under, and by virtue of, the
laws of the State of Delaware and is in good standing under such laws, (ii) has
the requisite corporate power and corporate authority to own and operate its
properties and assets, and to carry on its business as presently conducted and
as proposed to be conducted and (iii) is in good standing and qualified to do
business as a foreign corporation in every jurisdiction where the failure to so
qualify would have a material adverse effect on its business, properties,
financial condition, results of operations or prospects.

 

(b) Authority. AMD Investments has all requisite corporate power and corporate
authority to enter into and perform its obligations under this Agreement.

 

(c) Authorization. The execution, delivery and performance by AMD Investments of
this Agreement and each of the transactions contemplated hereby have been duly
and validly authorized by AMD Investments. No other corporate act or proceeding
on the part of AMD Investments, its board of directors, or its stockholders is
necessary to authorize the execution, delivery or performance by AMD Investments
of this Agreement. This Agreement constitutes a valid and binding obligation of
AMD Investments enforceable in accordance with its terms except (A) as limited
by applicable bankruptcy, insolvency, reorganization, moratorium, and other laws
of general application affecting enforcement of creditors’ rights generally, and
(B) as limited by laws relating to the availability of specific performance,
injunctive relief, or other equitable remedies.

 

(d) Consents. No consent, approval or authorization of, or designation,
declaration or filing with, any governmental authority or other third party on
the part of AMD Investments is required in connection with the valid execution
and delivery of this Agreement.

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4. Representations and Warranties of the Parents. Each of the Parents represents
and warrants to the Corporation as follows:

 

(a) Organization; Good Standing; Qualification. The Parent (i) is a corporation
duly organized and validly existing under, and by virtue of, the laws of its
jurisdiction of incorporation and is in good standing under such laws, (ii) has
the requisite corporate power and corporate authority to own and operate its
properties and assets, and to carry on its business as presently conducted and
as proposed to be conducted and (iii) is in good standing and qualified to do
business as a foreign corporation in every jurisdiction where the failure to so
qualify would have a material adverse effect on its business, properties,
financial condition, results of operations or prospects.

 

(b) Authority. The Parent has all requisite corporate power and corporate
authority to enter into and perform such Parent’s obligations under this
Agreement.

 

(c) Authorization. The execution, delivery and performance by the Parent of this
Agreement and each of the transactions contemplated hereby have been duly and
validly authorized by such Parent. No other corporate act or proceeding on the
part of the Parent, its board of directors, or its stockholders is necessary to
authorize the execution, delivery or performance by such Parent of this
Agreement. This Agreement constitutes a valid and binding obligation of the
Parent enforceable in accordance with its terms except (A) as limited by
applicable bankruptcy, insolvency, reorganization, moratorium, and other laws of
general application affecting enforcement of creditors’ rights generally, and
(B) as limited by laws relating to the availability of specific performance,
injunctive relief, or other equitable remedies.

 

(d) Consents. No consent, approval or authorization of, or designation,
declaration or filing with, any governmental authority or other third party on
the part of the Parent is required in connection with the valid execution and
delivery of this Agreement.

 

5. Absence of Registration. Except as set forth in the Stockholders Agreement,
the Corporation is under no obligation to register the Common Stock under the
Securities Act of 1933, as amended (the “Securities Act”), or any state
securities act or to take any other action necessary to comply with an available
exemption or regulation under any such acts (including Rule 144 under the
Securities Act) in order to permit AMD Investments or Fujitsu to sell, transfer
or otherwise dispose of the Common Stock. Accordingly, AMD Investments and
Fujitsu recognize that the Common Stock will not be freely transferable and
understand and acknowledge that each must continue to bear the economic risk of
an investment in the Common Stock for an indefinite period.

 

6. Legends. The certificates evidencing the Common Stock shall be stamped or
otherwise imprinted with a legend substantially in the following form (unless no
longer required in the opinion of counsel for the Corporation):

 

THE SHARES REPRESENTED BY THIS CERTIFICATE MAY NOT BE SOLD, TRANSFERRED OR IN
ANY WAY DISPOSED OF EXCEPT

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PURSUANT TO THE TERMS AND CONDITIONS OF A CERTAIN STOCKHOLDERS AGREEMENT DATED
AS OF DECEMBER 21, 2005, AND ANY AMENDMENTS THERETO, AMONG ADVANCED MICRO
DEVICES, INC., AMD INVESTMENTS, INC., FUJITSU LIMITED AND SPANSION INC., A COPY
OF WHICH IS ON FILE AT THE OFFICE OF THE CORPORATION. THE HOLDER IS SUBJECT TO
THE OBLIGATIONS THEREIN SET FORTH AND ANY SUCH DISPOSITION IN VIOLATION OF SAID
STOCKHOLDERS AGREEMENT SHALL BE NULL AND VOID.

 

THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER
THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR ANY SECURITIES
REGULATORY AUTHORITY OF ANY STATE, AND MAY NOT BE SOLD, ASSIGNED, PLEDGED,
ENCUMBERED, TRANSFERRED, GRANTED AN OPTION WITH RESPECT TO OR OTHERWISE DISPOSED
OF IN THE ABSENCE OF SUCH REGISTRATION OR DELIVERY TO THE CORPORATION OF AN
OPINION OF COUNSEL REASONABLY ACCEPTABLE TO THE CORPORATION THAT SUCH SALE OR
TRANSFER IS EXEMPT FROM REGISTRATION UNDER THE ACT.

 

7. Indemnification.

 

(a) The Corporation shall indemnify, defend and hold each Parent harmless from
and against, and shall promptly pay to or reimburse each such indemnified party
for, any and all losses, claims, damages, liabilities or expenses (including
fees and expenses of counsel) arising out of or relating to an inaccuracy or
breach of any representation or warranty of the Corporation contained in this
Agreement.

 

(b) Each Parent shall indemnify, defend and hold the Corporation and each other
Parent harmless from and against, and shall promptly pay to or reimburse each
such indemnified party for, any and all losses, claims, damages, liabilities or
expenses (including fees and expenses of counsel) arising out of or relating to
an inaccuracy or breach of any representation or warranty of such Parent or its
wholly-owned subsidiary contained in this Agreement.

 

8. Consent of the Corporation and Fujitsu The Corporation and Fujitsu each
acknowledge and consent to the contribution of the AMD Contributed Assets from
AMD to AMD (U.S.) Holdings, Inc., from AMD (U.S.) Holdings, Inc. to AMD
Investments and from AMD Investments to the Corporation.

 

9. Miscellaneous.

 

(a) Assignment. This Agreement shall be binding upon and inure to the benefit of
the successors and assigns of the parties.

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(b) Amendment. This Agreement may not be amended without the written consent of
the parties hereto.

 

(c) Entire Agreement and Modification. This Agreement constitutes and contains
the entire agreement of the parties with regard to the subject matter hereof,
and supersede any and all prior negotiations, correspondence, understandings,
and agreements between the parties respecting the subject matter hereof.

 

(d) Governing Law. This Agreement shall in all respects be governed by and
construed in accordance with the laws of the State of Delaware without giving
effect to its rules on conflicts of laws.

 

(e) Enforcement. If any portion of this Agreement shall be determined to be
unenforceable for any reason, it shall be adjusted rather than voided, if
possible, in order to achieve the intent of the parties to the extent possible.
In any event, all other provisions of this Agreement shall be valid and
enforceable to the maximum extent possible.

 

(f) Transfer Costs. The Corporation shall pay any transfer taxes, recording and
filing fees, and other charges with respect to the contribution of the AMD
Contributed Assets and the Fujitsu Contributed Assets.

 

(g) Headings. The headings appearing in this Agreement have been inserted for
identification and reference purposes and shall not by themselves determine the
construction or interpretation of this Agreement.

 

(h) Notices. All notices, deliveries, payments, and communications contemplated
hereunder shall be in writing and shall be deemed to be given upon personal
delivery or five (5) days after deposit in the United States mail, registered or
certified, postage prepaid, and address to the other party as follows:

 

To AMD:

 

Advanced Micro Devices, Inc.

One AMD Place

Sunnyvale, California 94086

Attn: General Counsel

 

To AMD Investments:

 

AMD Investments, Inc.

One AMD Place

Sunnyvale, California 94086

Attn: General Counsel

 

To Fujitsu:

 

Fujitsu Limited

Shiodome City Center

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1-5-2 Higashi-Shimbashi, Minato-Ku,

Tokyo 105-7123

JAPAN

Attn: Executive Vice President, Business and Promotion Group

Fascimile: +81-42-532-2550

 

To the Corporation, STI or the LLC:

 

Spansion Inc.

913 DeGuigne Drive

P.O. Box 3453

Sunnyvale, California 94088

Attn: General Counsel

 

(i) Counterparts. This Agreement may be executed in any number of counterparts
with the same effect as if the signatories to each counterpart were a single
instrument.

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IN WITNESS WHEREOF, the parties have duly executed this Exchange Agreement as of
the date first written above.

 

SPANSION INC. By:  

/s/ Bertrand F. Cambou

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Its:  

President and Chief Executive Officer

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SPANSION LLC By:  

/s/ Bertrand F. Cambou

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Its:  

President and Chief Executive Officer

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ADVANCED MICRO DEVICES, INC. By:  

/s/ Hollis M. O’Brien

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Its:  

Corporate Vice President and Secretary

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AMD INVESTMENTS, INC. By:  

/s/ Hollis M. O’Brien

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Its:  

VP & Secretary

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FUJITSU LIMITED By:  

/s/ Hiroaki Hurokawa

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Its:  

President

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SPANSION TECHNOLOGY INC. By:  

/s/ Bertrand F. Cambou

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Its:  

President and Chief Executive Officer

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