Exhibit 10.38(h-3)

 

THIRD AMENDMENT

 

TO

 

SPONSORS’ SUBORDINATION AGREEMENT

 

THIS THIRD AMENDMENT (this “Amendment”), dated 24 February 2004, is made between
ADVANCED MICRO DEVICES, INC., a corporation organized and existing under the
laws of the State of Delaware, United States of America, with its chief
executive office and principal place of business at One AMD Place, Sunnyvale,
California 94088, United States of America (“AMD Inc.”), AMD SAXONY HOLDING
GMBH, Dresden, registered in the Commercial Register of the Dresden County
Court, HRB 13931 (“AMD Holding”; and, together with AMD Inc., collectively, the
“Sponsors”), AMD SAXONY LLC, a limited liability company organised and existing
under the laws of the State of Delaware, United States of America (“AMD Saxony
LLC”); AMD SAXONY ADMIN GMBH registered in the Commercial Register of the
Dresden County Court HRB 20738 (“AMD Admin,” together with AMD Saxony LLC,
collectively, the “Additional Partner Companies”); AMD SAXONY LIMITED LIABILITY
COMPANY & Co. KG (formerly AMD Saxony Manufacturing GmbH) registered in the
Commercial Register of the Dresden County Court HRA 4896 (“AMD Saxonia”),
DRESDNER BANK LUXEMBOURG S.A., as Agent (and successor to Dresdner Bank AG in
such capacity) under the Loan Agreement referred to below (in such capacity, the
“Agent”) for the Banks referred to below, and DRESDNER BANK AG, as Security
Agent under such Loan Agreement (in such capacity, the “Security Agent”), for
the Secured Parties referred to below.

 

W I T N E S S E T H:

 

WHEREAS, AMD Saxonia, an indirect wholly-owned Subsidiary of AMD Inc., has been
formed for the purpose of constructing, owning, and operating (i) the Plant and
(ii) the integrated Design Center;

 

WHEREAS, in order to finance the construction of the Plant and the Design
Center, and start-up costs of the operation of the Plant, inter alia, (i) AMD
Saxonia has entered into a Syndicated Loan Agreement, dated 11 March 1997, as
amended, (the “Loan Agreement”) with the Agent, Dresdner Bank Luxembourg S.A. as
Paying Agent (as defined in the Sponsors’ Subordination Agreement as hereinafter
defined), the Security Agent and the Banks from time to time party thereto
providing, inter alia, for a senior secured term facility aggregating up to DM
1,500,000,000 (one billion five hundred million Deutsche Marks), (ii) the
Sponsors, the Additional Partner Companies, the Agent and the Security Agent
have entered into that certain Sponsors’ Support Agreement dated 11 March 1997,
as amended, (the “Sponsors’ Support Agreement”) providing (x) certain assurances
to the Agent and Security Agent with respect to the completion of the Project,
and (y) certain undertakings to and for the benefit of the Agent, the Paying
Agent, the Security Agent and the Banks (collectively, the “Secured Parties” and
individually a “Secured Party”);

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WHEREAS, AMD Saxonia, the Sponsors, the Additional Partner Companies, the
Security Agent and the Agent are party to a Sponsors’ Subordination Agreement
dated March 11, 1997 among the Sponsors, the Agent and the Security Agent, as
amended by the First Amendment to Sponsors’ Subordination Agreement dated 20
February 2001, among the Sponsors, the Agent and the Security Agent and the
Accession Agreement and Second Amendment to Sponsors’ Subordination Agreement
dated 3 June 2002 among the Sponsors, the Additional Partner Companies, the
Agent and the Security Agent (as amended, the “Sponsors’ Subordination
Agreement”);

 

WHEREAS, AMD Saxonia, the Agent, the Security Agent and the Banks wish, with the
consent of the Sponsors and the Additional Partner Companies to, among other
things, amend the Loan Agreement and AMD Saxonia, the Sponsors, the Additional
Partner Companies, the Agent and the Security Agent wish to amend the Sponsors’
Subordination Agreement on the terms and subject to the conditions of this
Amendment Agreement;

 

WHEREAS, contemporaneously with the execution and delivery of this Third
Amendment, AMD Saxonia, Dresdner Bank AG, the other Banks and Financial
Institutions named therein, Dresdner Bank Luxembourg S.A. as Agent and Paying
Agent and Dresdner Bank AG, as Security Agent, are entering into Amendment No. 6
to the Syndicated Loan Agreement dated 11 March 1997, as amended from time to
time (“Amendment No. 6”), and it is a condition to the effectiveness of said
Amendment No. 6 (the date on which said Amendment No. 6 becomes effective being
referred to herein as the “Amendment No. 6 Effective Date”) that a copy of this
Third Amendment shall be delivered to the Agent;

 

NOW, THEREFORE, the Sponsors, the Additional Partner Companies, AMD Saxonia, the
Agent (for itself and on behalf of the Banks), and the Security Agent (on behalf
of the Secured Parties), agree as follows:

 

ARTICLE I

Definitions

 

SECTION 1.1 Definitions. Capitalized terms not otherwise defined in this
Amendment are used with the definitions assigned to them in the Sponsors’
Subordination Agreement.

 

SECTION 1.2 Construction. In this Amendment, unless the context requires
otherwise, references to Sections and Schedules are to Sections and Schedules of
the Sponsors’ Support Agreement. Section headings are inserted for reference
only and shall be ignored in construing this Amendment.

 

ARTICLE II

Amendments

 

SECTION 2.1 Amendments. With effect from the Amendment No. 6 Effective Date the
Sponsors’ Subordination Agreement is hereby amended by deleting Section 3 (iii)
of the Sponsors’ Subordination Agreement in its entirety and replacing said
Section 3 (iii) as follows:

 

  “(iii) those payments to AMD Inc. made by AMD Saxonia in respect of purchases
of equipment, materials, supply and third party services in the ordinary course
of business and on an arm’s length basis the aggregate book value of which does
not exceed Euro 25,000,000 (twenty five million Euro) in any calendar year;”

 

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ARTICLE III

Miscellaneous

 

SECTION 3.1 Representations and Warranties. Each of the Sponsors, AMD Saxonia
and the Additional Partner Companies hereby represents and warrants as of the
date hereof that:

 

(a) Organization; Corporate Power. It is duly incorporated and validly existing
under the laws of the jurisdiction of its organization, and has all necessary
power and authority to execute and deliver this Amendment and, following the
Amendment No. 6 Effective Date, to consummate the transactions contemplated
herein;

 

(b) Corporate Authority; No Conflict. The execution and delivery by it of this
Amendment, and the performance by it of its obligations hereunder have been duly
authorized by all necessary corporate action (including any necessary
shareholder action) on its part, and do not and will not (i) violate any
provision of any law, rule, regulation, order, writ, judgment, injunction,
decree, determination or award presently in effect having applicability to it,
or of its charter or by-laws or (ii) result in a breach of, result in a
mandatory prepayment or acceleration of indebtedness evidenced by or secured by,
or constitute a default under, any indenture or loan or credit agreement, or any
other agreement or instrument to which it is a party or by which it or its
properties may be bound, or require the creation or imposition of any
encumbrance of any nature upon or with respect to any of the properties now
owned or hereafter acquired by it; and

 

(c) Valid and Binding Obligations. This Amendment constitutes its legal, valid
and binding obligation, enforceable against it in accordance with its terms
subject, however, to applicable bankruptcy, insolvency, reorganization,
moratorium or similar laws affecting creditors’ rights generally and, as to
enforceability, by general equitable principles.

 

SECTION 3.2 Miscellaneous.

 

(a) This Amendment is limited as specified and, except as expressly herein
provided, shall not constitute a modification, amendment or waiver of any other
provision of any other Operative Document. Except as specifically amended by
this Amendment, the Sponsors’ Subordination Agreement shall remain in full force
and effect and is hereby ratified and confirmed.

 

(b) This Amendment shall be an Operative Document under and for purposes of the
Sponsors’ Support Agreement.

 

(c) The form and execution of this Amendment and all rights and obligations of
the parties arising hereunder shall be governed by the laws of the Federal
Republic of Germany.

 

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(d) This Amendment may be executed in any number of counterparts and all of such
counterparts taken together shall be deemed to constitute one and the same
instrument.

 

(e) Sections 20, and 21 of the Sponsors’ Subordination Agreement shall apply,
mutatis mutandis, to this Amendment, as if set out herein in full.

 

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IN WITNESS WHEREOF, each of the parties set out below has caused this Amendment
to be duly executed and delivered by its respective officer or agent thereunto
duly authorised as of the date first above written.

 

ADVANCED MICRO DEVICES, INC.

By

  /s/    Robert J. Rivet    

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Its

 

Senior VP, Chief Financial Officer

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AMD SAXONY HOLDING GMBH

By

  /s/    Hans-Raimund Deppe    

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Its

 

Managing Director

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AMD SAXONY ADMIN GMBH

By

  /s/    Hans-Raimund Deppe    

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Its

 

Managing Director

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AMD SAXONY LLC

By

  /s/    Thomas M. McCoy    

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Its

 

Director

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AMD SAXONY LIMITED LIABILITY COMPANY & CO KG,

represented by its general partner AMD Saxony LLC

By

  /s/    Hans-Raimund Deppe    

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Its

 

Managing Director

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DRESDNER BANK LUXEMBOURG S.A.,

as Agent

By

  /s/    Christian Kogge /s/    Brigitte Debiol    

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Its

 

 

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DRESDNER BANK AG, as Security Agent

By

  /s/    Hans-Jürgen Dittmann /s/    Veit Schweiger    

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Its

 

 

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