Document:

Sale and Purchase Agreement

 Exhibit 10.16 
  
 DATED DECEMBER 20, 2005 
  
 BETWEEN 
  
 ADVANCED MICRO DEVICES EXPORT SDN. BHD. 
  
 (the “Vendor”) 
  
 AND 
  
 SPANSION
(PENANG) SDN. BHD. 
  
 (the “Purchaser”)

  

  
 SALE AND PURCHASE AGREEMENT 
  

  
 Wong & Partners 
  
 Level 41, Suite A 
 Menara Maxis 
 Kuala Lumpur City Centre 
 50088 Kuala Lumpur 
 Tel: +603 2055 1888

 Fax: +603 2161 2919 

 TABLE OF CONTENTS 
  

					
	 CLAUSE

	 	 HEADING

	  	PAGE

	 1.
	 	INTERPRETATION	  	1
			
	 2.
	 	SALE OF THE PROPERTY	  	5
			
	 3.
	 	CONSIDERATION	  	6
			
	 4.
	 	DELIVERY OF DOCUMENTS SIMULTANEOUS WITH EXECUTION OF AGREEMENT	  	6
			
	 5.
	 	CONDITIONS	  	7
			
	 6.
	 	COMPLETION	  	8
			
	 7.
	 	ENVIRONMENTAL MATTERS	  	9
			
	 8.
	 	NON-REGISTRATION OF TRANSFERS	  	12
			
	 9.
	 	REAL PROPERTY GAINS TAX	  	13
			
	 10.
	 	CONDUCT PENDING COMPLETION	  	13
			
	 11.
	 	REPRESENTATIONS AND WARRANTIES	  	14
			
	 12.
	 	TERMINATION AND BREACH	  	15
			
	 13.
	 	COMPULSORY ACQUISITION OF THE PROPERTY	  	16
			
	 14.
	 	PURCHASER’S CAVEAT	  	17
			
	 15.
	 	APPORTIONMENT	  	17
			
	 16.
	 	COSTS	  	18
			
	 17.
	 	NOTICES	  	18
			
	 18.
	 	GENERAL MATTERS AND COVENANTS	  	19
			
	 19.
	 	SUCCESSORS AND ASSIGNS	  	19
			
	 20.
	 	MISCELLANEOUS	  	20
			
	 21.
	 	INVALIDITY AND SEVERABILITY	  	20
			
	 22.
	 	FURTHER ASSURANCE	  	21
			
	 23.
	 	LAW AND JURISDICTION	  	21
		
	 APPENDIX 1
	  	23
		
	 APPENDIX 2
	  	24
		
	 APPENDIX 3
	  	25

 THIS AGREEMENT is dated December 20, 2005 
  
 BETWEEN 
  

	(1)	ADVANCED MICRO DEVICES EXPORT SDN. BHD. (Company Number : 40990-W), a private company limited by shares incorporated in Malaysia and having its registered office at 368-3-1
& 2 Belisa Row, Burma Road, 10350 Pulau Pinang and a business address at Phase II, Free Industrial Zone, 11900 Bayan Lepas, Pulau Pinang (the “Vendor”); and 

  

	(2)	SPANSION (PENANG) SDN. BHD. (Company Number : 613545-T), a private company limited by shares incorporated in Malaysia and having its registered office at
368-3-1 & 2 Belisa Row, Burma Road, 10350 Pulau Pinang and a business address at Phase II, Free Industrial Zone, 11900 Bayan Lepas, Pulau Pinang (the “Purchaser”). 

  
 WHEREAS : 
  

	(A)	The Vendor is the registered and beneficial proprietor of all of those three (3) pieces of land held under issue documents of title with the following particulars:

  

	 	(i)	HS(D) 4263 PT No. 365, Mukim 12, Daerah Barat Daya, Negeri Pulau Pinang; 

  

	 	(ii)	HS(D) 2746 PT No. PTBP/A/38/80, Mukim 12, Daerah Barat Daya, Negeri Pulau Pinang; and 

  

	 	(iii)	HS(D) 15 PT No. PDBP 609/29/72, Mukim 12, Daerah Barat Daya, Negeri Pulau Pinang, 

  
 each a “Title” (and together the “Titles”), together with two (2) buildings erected
thereon and all appurtenances and improvements thereto and bearing the postal address of AM1 and AM2 Buildings, Phase 2 Free Industrial Zone, Bayan Lepas, Penang Malaysia 11900 (hereinafter collectively referred to as “the
Property”). 
  

	(B)	The Vendor has agreed to sell and the Purchaser has agreed to purchase the Property. 

  
 NOW IT IS HEREBY AGREED as follows: 
  

	1.	INTERPRETATION 

  

	1.01	In this Agreement, unless the context requires otherwise: 

  

			
	“Business”	  	means the manufacture, research and development, assembly, mark and pack of integrated circuits;
		
	“Business Day”	  	means a day (other than a Saturday or Sunday or gazetted public holiday) on which commercial banks are open for general banking business in Penang, Malaysia;

  

 1 

			
	 “Collector of
 Stamp
Duty”
	  	means the “Collector” as defined in Section 2 of the Stamp Act 1949;
		
	“Completion”	  	means completion of the sale and purchase of the Property as specified in Clause 6;
		
	“Completion Date”	  	means the date of Completion which shall be five (5) Business Days after the Unconditional Date;
		
	“Conditions”	  	shall have the meaning attributed to it in Clause 5.01;
		
	“Cut-Off Date”	  	means the date which is three (3) months from the date of this Agreement or such other date as shall be mutually agreed upon by the Vendor and the Purchaser in writing;
		
	“Encumbrance”	  	means any interest or equity of any person (including any right to acquire, option or right of pre-emption) or any mortgage, charge, pledge, lien, assignment, hypothecation, security interest,
title retention or any other security agreement, arrangement or encumbrances whatsoever;
		
	“Environment”	  	means all or any of the following media, namely air, water and land; and the medium of air includes the air within buildings and the air within other natural or man-made structures above or
below ground;
		
	 “Environmental
 Law”
	  	means all and any laws, common law, statutes, directives, regulations, notices, standards having force of law, codes of practice, guidance notes, by-laws, judgments, decrees or orders having
effect in Malaysia relating to (i) pollution, contamination or protection of the Environment or (ii) the storage, labeling, handling, release, treatment, manufacture, processing, deposit, transportation or disposal of Hazardous Substance or (iii)
the responsibility or duty of care for waste;
		
	 “Government
 Agency”
	  	means any government or governmental, semi-governmental, administrative, fiscal or judicial body, department, commission, authority, tribunal, agency or entity in any part of the
world;
		
	 “Hazardous
 Substance”
	  	means any hazardous, toxic or harmful substances, wastes, materials, pollutants or contaminants (including, without limitation, asbestos, polychlorinated biphenyls, petroleum products, radon,
lead-based paint, flammable explosives, radioactive materials, infectious substances or raw materials which may include hazardous constituents) or any other substances or materials which are included under or regulated by Environmental
Law;

  

 2 

			
	“Land Charge”	  	means the National Land Code charge to be in the approved form granted by the Purchaser to the Vendor in respect of each of the Titles as security for the payment of amounts owing by the
Purchaser to the Vendor under the Promissory Note in the approved form which is annexed hereto as Appendix 3;
		
	“Land Registry”	  	means the land registry or land office at which the Titles are registered under the provisions of the National Land Code;
		
	 “National Land
 Code”
	  	means the National Land Code 1965 of Malaysia and includes all amendments or re-enactments thereof;
		
	 “Permitted
 Encumbrances”
	  	means the Purchaser’s Caveat, any security agreement, arrangement or encumbrances whatsoever caused or brought about by or created in favour of the Purchaser (including, without limitation,
the Land Charge) and the TNB Sub-leases;
		
	“Promissory Note”	  	means the promissory note issued by the Purchaser in favour of the Vendor on the Completion Date, the approved form of which is annexed hereto as Appendix 2;
		
	“Property”	  	shall have the meaning attributed to it in Recital A;
		
	“Purchaser’s Caveat”	  	shall have the meaning attributed to it in Clause 14.01;
		
	 “Purchaser’s
 Indemnified
 Parties”
	  	shall have the meaning attributed to it in Clause 7;
		
	“Purchase Price”	  	means the total purchase consideration for the purchase of the Property amounting to Ringgit Malaysia Nineteen Million Three Hundred and Eighteen Thousand Nine Hundred and Twenty Two and Forty
Seven cents (RM 19,318,922.47) only;
		
	“Solicitors”	  	means Wong & Partners of Level 41, Suite A, Menara Maxis, Kuala Lumpur City Centre, 50088 Kuala Lumpur;
		
	“Tenancy Agreement”	  	means the tenancy agreement to be entered into by the Purchaser and the Vendor at Completion in the approved form annexed hereto as Appendix 1;

  

 3 

			
	“Title”	  	shall have the meaning attributed to it in Recital A;
		
	“TNB Sub-leases”	  	means the sub-leases granted to Tenaga Nasional Berhad as appears on the Titles;
		
	“Transfers”	  	means a valid, executed and registrable memorandum of transfer in Form 14A of the National Land Code or such other prescribed statutory form, in respect of each of the Titles constituting the
Property, duly completed and executed by the Vendor in favour of the Purchaser or its nominee;
		
	 “Transfer
 Documents”
	  	means :
		
	 	  	 (a)       the original issue documents of title to the Titles constituting the
Property;

		
	 	  	 (b)      the Transfers;

		
	 	  	 (c)       a stamp office proforma (Form PDS 15) by the Vendor in relation to the transfer of the Property
for the Purchase Price and on the terms set out in this Agreement;

		
	 	  	 (d)      the certified true copies of the quit rent and assessment receipts in respect of the Titles
constituting the Property, for the current year; and

		
	 	  	 (e)       all other documents which are reasonably necessary to enable registration of the Transfers to be
effected in favour of the Purchaser or its nominees free from Encumbrances (other than the Permitted Encumbrances) in accordance with the provisions of this Agreement including but not limited to copies (each certified as a true copy by the
Vendor’s secretary) of the memorandum and articles of association of the Vendor, the resolution of the board of directors of the Vendor approving the execution of this Agreement and the sale of the Property upon the terms herein and the
Vendor’s latest Forms 24, 44 and 49; and

		
	 “Unconditional
 Date”
	  	shall have the meaning attributed to it in Clause 5.07.

  

	1.02	References to statutory provisions shall be construed as references to those provisions as amended or re-enacted or as their application is modified by other provisions (whether
before or after the date hereof) from time to time and shall include any provisions of which they are re-enactments (whether with or without modification). 

  

 4 

	1.03	References herein to Clauses and Schedules are to clauses in and schedules to this Agreement unless the context requires otherwise and the Schedules to this Agreement shall be
deemed to form part of this Agreement. 

  

	1.04	The expressions “the Vendor” and “the Purchaser” shall, where the context permits, include their respective successors and permitted assigns.

  

	1.05	All representations, warranties, undertakings, indemnities, covenants, agreements and obligations given or entered into by more than one person are given or entered into jointly and
severally. 

  

	1.06	The headings are inserted for convenience only and shall not affect the construction of this Agreement. 

  

	1.07	Unless the context requires otherwise, words importing the singular include the plural and vice versa and words importing a gender include every gender. 

  

	1.08	A document expressed to be “in the approved form” means a document the terms of which have been approved by or on behalf of the parties hereto and a copy of which has been
initialed for the purposes of identification by or on behalf of the parties hereto. 

  

	2.	SALE OF THE PROPERTY 

  

	2.01	Subject to the terms of this Agreement and in consideration of the Purchase Price and the mutual promises and undertakings contained herein, the Vendor shall sell the Property as
legal and beneficial owner thereof and the Purchaser shall purchase the same free from any Encumbrances (other than Permitted Encumbrances) and together with all rights now or hereafter attaching thereto. 

  

	2.02	The Property is sold by the Vendor to the Purchaser: 

  

	 	(a)	free from any Encumbrances but subject to the Permitted Encumbrances; 

  

	 	(b)	with possession; 

  

	 	(c)	subject to any express condition of title and restrictions in interest appearing on the issue document of title to the Property at the Land Registry; 

  

	 	(d)	subject to the existing category of land use affecting the Property; 

  

	 	(e)	subject to the rights of the Vendor and the obligations of the Purchaser under the Tenancy Agreement; 

  

	 	(f)	on an “as-is-where-is” basis. 

  

	2.03	The parties hereby agree that this Agreement will have effect from 24 October 2005, notwithstanding the date of this Agreement. 

  

 5 

	3.	CONSIDERATION 

  

	3.01	The Purchase Price to be paid by the Purchaser for the purchase of the Property shall be Ringgit Malaysia Nineteen Million Three Hundred and Eighteen Thousand Nine Hundred and
Twenty Two and Forty Seven Cents (RM19,318,922.47) only. 

  

	3.02	The Purchase Price due from the Purchaser to the Vendor pursuant to Clause 3.01 shall be settled by the delivery of the Promissory Note in accordance with Clause 6.

  

	4.	DELIVERY OF DOCUMENTS SIMULTANEOUS WITH EXECUTION OF AGREEMENT 

  

	4.01	The Vendor shall, simultaneously with the execution of this Agreement or within ten (10) business days thereof, deliver the Transfer Documents to the Solicitors.

  

	4.02	Simultaneously upon the execution of this Agreement, the Purchaser shall deliver the following to the Solicitors: 

  

	 	(a)	memorandum and articles of association of the Purchaser; and 

  

	 	(b)	the Purchaser’s latest Forms 24, 44 and 49; and 

  

	 	(c)	the resolution of the board of directors of the Purchaser approving the purchase of the Property from the Vendor. 

  

	4.03	As soon as is reasonably practicable after written confirmation has been issued by the Purchaser to the Solicitors pursuant to Clause 5.07 that the Conditions have been satisfied,
the parties agree that the Solicitors are hereby authorised to submit the Transfers to the Collector of Stamp Duty for the purpose of adjudication and stamping of the Transfer Documents. 

  

	4.04	The Solicitors shall, upon receipt of the notice of the adjudication of the Transfers, notify the Purchaser of the stamp duty adjudicated on the Transfers and the Purchaser shall,
as soon as is reasonably practicable but no later than five (5) Business Days prior to the statutorily prescribed period for payment of stamp duty following the issue of the notice of adjudication, deliver to the Solicitors a bank draft in
favour of the “Pemungut Duti Setem” for the amount of the applicable stamp duty and the Solicitors shall thereby be authorised to deliver the same to the Stamp Office for payment of the stamp duty on the Transfers.

  

	4.05	Subject to Completion having taken place, the Solicitors shall, within five (5) Business Days after the payment of the stamp duty on the Transfers, present the Transfer
Documents, the documents specified in Clause 4.02 and the duly executed Land Charge at the Land Registry for registration. 

  

 6 

	5.	CONDITIONS 

  

	5.01	The parties agree that the obligation to complete the transaction for the sale and purchase of the Property shall remain conditional upon the fulfillment of all the following
conditions: 

  

	 	(a)	the approval of the Penang State Authority to the sale of the Property to the Purchaser; 

  

	 	(b)	the respective approvals of the board of directors of both parties for the sale and purchase of the Property and the execution of this Agreement; 

  

	 	(c)	the removal by the Vendor of all Encumbrances (other than the Permitted Encumbrances) from the Property, if any; and 

  

	 	(d)	the payment and settlement by the Vendor of all outstanding quit rent, rates, premiums, other outgoings or charges (if any) due and payable for the Property or the Property.

  
 (hereinafter collectively referred to as the
“Conditions”). 
  

	5.02	The Purchaser shall, at its own costs and expense, be responsible for the fulfillment of the Condition in Clause 5.01 (b) (to the extent applicable to the Purchaser).

  

	5.03	The Vendor shall, at its own costs and expenses, be responsible for the fulfillment of the Conditions in Clause 5.01 (a), (b) (to the extent applicable to the Vendor),
(c) and (d). None of the Conditions may be waived by any party other than the Condition contained in Clause 5.01 (c) which may only be waived by the Purchaser. 

  

	5.04	Each party shall use its best endeavours to ensure the fulfillment of the Conditions for which it is responsible on or before the relevant Cut-Off Date, and shall grant all
reasonable assistance to the other party to assist it in fulfilling the Conditions for which the other party is responsible including executing and providing relevant documents for that purpose. Each party shall at all times keep the other party
informed of all matters relating to the approvals and without limit, must provide the other party with copies of all correspondence in relation to the approval. 

  

	5.05	In the event that any approval required to be obtained is granted subject to any condition (“Approval Conditions”) that materially and adversely affects either the
Vendor or the Purchaser (“Affected Party”), then the Affected Party shall within seven (7) days of receipt of notice of such condition notify the other party in writing of its objection to the condition in which event such
approval shall be deemed not to amount to an approval and the relevant Condition in Clause 5.01 shall be considered not to have been obtained or fulfilled. The Affected Party may within fourteen (14) days of receipt of notice of the Approval
Conditions, give written notice to the other party of its intention to appeal against any or all of the Approval Conditions PROVIDED ALWAYS that in the event that the Affected Party fails to notify the other party in writing of its objection to the
Approval Conditions, the condition shall be deemed to have been accepted by the Party. 

  

 7 

	5.06	The Purchaser may waive the Condition specified in Clause 5.01(c) by notice in writing to the Vendor. 

  

	5.07	This Agreement shall become unconditional: 

  

	 	(a)	on the date that all the Conditions have been satisfied; or 

  

	 	(b)	on the date all Conditions other than that specified in Clause 5.01(c) has been satisfied and the Purchaser waives the satisfaction of the Condition specified in Clause 5.01(c)
(“Unconditional Date”). The Purchaser shall, on the Unconditional Date, send to the Solicitors a written confirmation of this Agreement becoming unconditional. 

  

	6.	COMPLETION 

  

	6.01	Completion shall take place on the Completion Date at the offices of the Solicitors at Level 41 - Suite A, Menara Maxis, Kuala Lumpur City Centre, 50088 Kuala Lumpur, or at such
other place and time as the parties may mutually agree. 

  

	6.02	At Completion: 

  

	 	(a)	the Purchaser shall deliver to the Vendor the duly executed Promissory Note; and 

  

	 	(b)	the Vendor shall deliver or cause to be delivered possession of the Property to the Purchaser (which shall include, but is not limited to, the giving of keys and other modes of
access to the Property). 

  

	6.03	At Completion, the Parties shall execute the Tenancy Agreement and the Land Charge. 

  

	6.04	Following Completion, the Purchaser shall procure the Solicitors to present all necessary Transfer Documents to the Land Registry for the registration of the transfer of the
Property to the Purchaser in accordance with Clause 4.05. 

  

	6.05	It is agreed that if there is any delay in the presentation of the Transfer Documents to the Land Registry resulting from any default by the Vendor of its obligations hereunder and
the delay results in the imposition of a penalty or fee for late presentation by the Land Registry, the Vendor shall be responsible for and shall indemnify the Purchaser for such penalty or fees. 

  

	6.06	Without prejudice to any other remedies available to the Purchaser if, in any respect, the provisions of Clause 6.02 are not complied with by the Vendor on the Completion Date, the
Purchaser may: 

  

	 	(a)	defer Completion to a date not more than thirty (30) days after the Completion Date; or 

  

 8 

	 	(b)	proceed to Completion so far as practicable (without prejudice to its rights hereunder); or 

  

	 	(c)	terminate this Agreement in which case the Promissory Note issued by the Purchaser in favour of the Vendor under this Agreement shall be surrendered by the Vendor together with a
written confirmation that the Vendor had not, prior to the surrender of the Promissory Note, sold, transferred, factored or otherwise dealt with its interest under the Promissory Note 

  

	7.	ENVIRONMENTAL MATTERS 

  

	7.01	The Vendor hereby represents and warrants to the Purchaser that, as of Completion Date: 

  

	 	(a)	the Property, to the best of the Vendor’s knowledge and belief, it is in full compliance with and has been in full compliance with Environmental Law; 

 

	 	(b)	to the best of the Vendor’s knowledge and belief, no Hazardous Substance is located on or have been handled, manufactured, generated, stored, processed, transported to or from,
or disposed of on or released or discharged from the Property during the Vendor’s ownership of the Property (including soil and groundwater beneath the Property) except for those substances used by the Vendor in the ordinary course of its
business and in full compliance with Environmental Law; 

  

	 	(c)	the Property is not subject to any private or governmental lien or judicial, administrative or other notice or action relating to a Hazardous Substance or is in non-compliance with
Environmental Law, nor is the Vendor, to the best of its knowledge and belief, aware of any basis for such lien, notice or action; 

  

	 	(d)	there are no underground storage tanks or other underground storage receptacles (whether active or abandoned) used to store a Hazardous Substance on the Property;

  

	 	(e)	the Vendor has received no notice of, and to the best of its knowledge and belief, there does not exist any investigation, action, proceeding or claim by any agency, authority or
unit of government or by any third party which could result in any liability, penalty, sanction or judgment under any Environmental Law with respect to any condition, use or operation of the Property, nor does the Vendor know of any basis for such
investigation, action, proceeding or claim; and 

  

	 	(f)	the Vendor has received no notice that, and, to the best of its knowledge and belief there has been no claim by any party that, any use, operation or condition of the Property has
caused any nuisance, trespass or any other liability or adverse condition on any other property, nor does the Vendor know of any basis for such notice or claim. 

  

 9 

	7.02	References to the “knowledge and belief” of the Vendor in this Clause 7 shall refer only to the current knowledge of Jariyah Hashim (who the Vendor represents and warrants
is an employee of the Vendor who is most familiar with the environmental condition of the Property) and shall not be construed, by imputation or otherwise, to impose any duty to investigate the matter to which such knowledge or the absence thereof,
pertains. The fact that such individual is named in this Clause 7 shall not create nor impose any personal liability under this Agreement upon such individual; nor shall it change the fact that the Vendor is itself responsible for all
representations and warranties in this Clause 7. 

  

	7.03	THE VENDOR COVENANTS AND AGREES, AT ITS SOLE COST AND EXPENSE, TO INDEMNIFY, DEFEND (INCLUDING WITHOUT LIMITATION AT TRIAL AND APPELLATE LEVELS, AND WITH QUALIFIED ATTORNEYS,
CONSULTANTS AND EXPERTS), AND HOLD PURCHASER, AND PURCHASER’S OFFICERS, AGENTS, EMPLOYEES, ATTORNEYS, DIRECTORS, SHAREHOLDERS, AFFILIATES AND MAJORITY OWNED OR CONTROLLED SUBSIDIARIES AND BRANCHES (SO LONG AS SUCH ENTITIES REMAIN OWNED OR
CONTROLLED BY PURCHASER) AND THEIR HEIRS, LEGAL REPRESENTATIVES, SUCCESSORS AND ASSIGNS (COLLECTIVELY “PURCHASER’S INDEMNIFIED PARTIES”) HARMLESS FROM AND AGAINST ANY AND ALL LIENS, DAMAGES, LOSSES, LIABILITIES, OBLIGATIONS,
PENALTIES, ASSESSMENTS, CITATIONS, DIRECTIVES, CLAIMS, LITIGATION, DEMANDS, JUDGMENTS, SUITS, PROCEEDINGS, COSTS, AND EXPENSES (COLLECTIVELY “CLAIMS”) OF ANY KIND OR OF ANY NATURE WHATSOEVER (INCLUDING, WITHOUT LIMITATION,
REASONABLE ATTORNEYS’, CONSULTANTS’ AND EXPERTS’ FEES AND DISBURSEMENTS ACTUALLY INCURRED IN INVESTIGATING, DEFENDING, OR SETTLING ANY SUCH CLAIMS) WHICH MAY AT ANY TIME BE IMPOSED UPON, INCURRED BY OR ASSERTED OR AWARDED AGAINST ANY
OF PURCHASER’S INDEMNIFIED PARTIES OR THE PROPERTY, AND ARISING DIRECTLY OR INDIRECTLY FROM OR OUT OF: (A) THE PRESENCE, ON OR BEFORE THE COMPLETION DATE, BUT NOT BEFORE COMMENCEMENT OF THE VENDOR’S OWNERSHIP OF THE PROPERTY,
OF ANY HAZARDOUS SUBSTANCE ON, IN, OR UNDER, ALL OR ANY PORTION OF THE PROPERTY, OR THE RELEASE OR THREAT OF RELEASE AFTER THE CLOSING OF ANY SUCH PRE-COMPLETION DATE HAZARDOUS SUBSTANCE FROM OR ON THE PROPERTY OR ANY SURROUNDING AREA, PROVIDED THAT
THE POST- COMPLETION DATE RELEASE OF SUCH HAZARDOUS SUBSTANCE WAS NOT CAUSED BY PURCHASER’S NEGLIGENCE OR INTENTIONAL CONDUCT; (B) THE VIOLATION, PRIOR TO THE COMPLETION DATE, OF ANY ENVIRONMENTAL LAW BY VENDOR RELATING TO OR AFFECTING OR
THREATENING TO AFFECT THE PROPERTY; OR (C) THE FAILURE BY VENDOR TO COMPLY FULLY WITH THE TERMS AND CONDITIONS OF THIS CLAUSE 7; INCLUDING, WITHOUT LIMITATION, THE COST OF ASSESSMENT, CONTAINMENT, REMEDIATION AND/OR REMOVAL OF ANY AND ALL
HAZARDOUS SUBSTANCE ON ALL OR ANY PORTION OF THE PROPERTY ON OR BEFORE THE COMPLETION DATE AND INCLUDING BUT NOT LIMITED TO ANY CLAIMS BASED ON THE STRICT LIABILITY, SOLE OR CONCURRENT NEGLIGENCE OR 

  

 10 

 INTENTIONAL ACTS OF ANY OF PURCHASER’S INDEMNIFIED PARTIES, EXCEPTING RELEASES TO THE EXTENT
OCCURRING AS A RESULT OF THE ACTS OR OMISSION OF ANY OF PURCHASER’S INDEMNIFIED PARTIES AS A TENANT UNDER THE LEASE AGREEMENT WHERE THE VENDOR WAS THE LANDLORD. THE VENDOR’S OBLIGATIONS UNDER THIS CLAUSE 7 WITH RESPECT TO ANY OF
PURCHASER’S INDEMNIFIED PARTIES OR ANY CLAIM ARE CONTINGENT ON: (i) ANY OF PURCHASER’S INDEMNIFIED PARTIES NOTIFYING THE VENDOR IN WRITING WITHIN FORTY-FIVE (45) DAYS OF ANY SUCH PARTY’S KNOWLEDGE OF ANY CLAIM; HOWEVER, IF
THE VENDOR IS NOT NOTIFIED WITHIN SUCH PERIOD, THE VENDOR’S INDEMNITY OBLIGATIONS UNDER THIS CLAUSE 7 REMAIN INTACT EXCEPT TO THE EXTENT THE VENDOR IS PREJUDICED BY THE DELAYED NOTIFICATION; (ii) THE VENDOR BEING AFFORDED CONTROL OF THE
DEFENSE AND ALL RELATED SETTLEMENT NEGOTIATIONS (PROVIDED THAT PURCHASER MUST APPROVE ANY SETTLEMENT, WHICH MAY NOT BE UNREASONABLY WITHHELD, DELAYED OR CONDITIONED, AND PURCHASER MAY, AT ITS OWN COST, PARTICIPATE IN THE DEFENSE AND ALL RELATED
SETTLEMENT NEGOTIATIONS AND MAY RETAIN INDEPENDENT COUNSEL AT ITS OWN EXPENSE); (iii) PURCHASER PROVIDING THE VENDOR WITH REASONABLE ACCESS TO THE PROPERTY TO CONDUCT REASONABLY NECESSARY TESTS AND INVESTIGATIONS AND PERFORM REMEDIAL WORK AS
REASONABLY NECESSARY TO MEET ITS OBLIGATIONS UNDER THIS CLAUSE 7; AND (iv) PURCHASER PROVIDING THE VENDOR WITH REASONABLE ACCESS TO INFORMATION WITHIN PURCHASER’S POSSESSION, AND AUTHORITY AS REASONABLY REQUESTED BY THE VENDOR IN
PERFORMING ITS OBLIGATIONS UNDER THIS CLAUSE 7. 
  

	7.04	NOTWITHSTANDING THE FOREGOING, THE VENDOR’S OBLIGATIONS OF DEFENSE AND INDEMNITY UNDER THIS CLAUSE 7 EXPRESSLY EXCLUDE CLAIMS FOR LOSS OF PROFITS OR PERCEIVED LOSS OF PROFITS
UNRELATED TO THE SALE OR LEASE OF THE PROPERTY OR ANY DELAYS CAUSED BY TIMELY REMEDIATION OF ANY HAZARDOUS SUBSTANCE AS MAY BE REQUIRED TO FULFILL ITS OBLIGATIONS UNDER THIS CLAUSE 7; PROVIDED, HOWEVER, SUCH LIMITATIONS SHALL NOT BE APPLICABLE TO
THE EXTENT SUCH LIABILITY AROSE AS A DIRECT RESULT OF THE VENDOR’S UNCURED OR UNCUREABLE BREACH OF A MATERIAL REPRESENTATION, WARRANTY OR TERM UNDER THIS AGREEMENT. FURTHER, THE VENDOR’S OBLIGATIONS OF DEFENSE AND INDEMNITY UNDER THIS
CLAUSE 7 SHALL NOT EXCEED THE AMOUNT OF THE PURCHASE PRICE FOR THE FOLLOWING: ANY REDUCTION IN VALUE OF THE PROPERTY OR PERCEIVED REDUCTION IN VALUE OF THE PROPERTY (INCLUDING, WITHOUT LIMITATION, ANY REDUCTION IN VALUE RELATING TO THE SALE OR LEASE
OF THE PROPERTY), STIGMA OF THE PROPERTY, INABILITY TO SELL, LEASE OR FINANCE THE PROPERTY OR ANY PART THEREOF, INABILITY TO USE THE PROPERTY OR CONSTRUCT IMPROVEMENTS THEREON OR ANY PART THEREOF. 

  

 11 

	7.05	FOR THE AVOIDANCE OF DOUBT, PURCHASER’S INDEMNIFIED PARTIES SHALL NOT INCLUDE ANY SUBSEQUENT PURCHASER OF THE PROPERTY OR ANY LIENHOLDER, MORTGAGOR OR FINANCING PARTY,
CONTRACTOR OR LEASEHOLDER. 

  

	7.06	Upon satisfaction of any Claim pursuant to this Clause 7, the Vendor’s rights and remedies shall be subrogated to all rights and remedies of the Purchaser against any third
party with respect to such Claim; provided that such right of subrogation shall be limited in amount to the amount actually received by or paid on behalf of the Purchaser from or by the Vendor with respect to such Claim; and provided, further, that
any Claim by Purchaser against any such third party resulting from such right of subrogation shall be subordinated to any Claim of Vendor against such third party for amounts in excess of the amount actually received by Purchaser from the Vendor
pursuant to this Clause 7. 

  

	8.	NON-REGISTRATION OF TRANSFERS 

  

	8.01	Notwithstanding anything in this Agreement, if the Purchaser cannot be registered as the registered proprietor of the Property free and clear from all Encumbrances (other than the
Permitted Encumbrances) for any reason whatsoever (save and except for the default of the Purchaser of any of its obligations hereunder) within 12 months after the Completion Date, the Vendor shall, within seven (7) days of written notice to
the Vendor of the non-registration, surrender or cause to be surrendered the Promissory Note together with a written confirmation that the Vendor had not, prior to the surrender of the Promissory Note, sold, transferred, factored or otherwise dealt
with its interest under the Promissory Note, in exchange for the Purchaser delivering or causing to be delivered to the Vendor: 

  

	 	(a)	vacant possession of the Property (if vacant possession has been delivered to the Purchaser); 

  

	 	(b)	a valid and registrable notice to withdraw the Purchaser’s Caveat duly executed by the Purchaser (if the Purchaser has lodged the Purchaser’s Caveat);

  

	 	(c)	the original issue documents of title to the Titles constituting the Property provided that it has been delivered to the Purchaser by the Vendor under this Agreement; and

  

	 	(d)	the Transfers. 

  
 and thereafter, this Agreement shall terminate and be of no further effect whatsoever but without prejudice to any right which either party may be
entitled to against the other party in respect of any antecedent breach of this Agreement. 
  

 12 

	9.	REAL PROPERTY GAINS TAX 

  

	9.01	The Vendor will be responsible for paying and settling all Real Property Gains Tax (if any) payable on the disposal of the Property pursuant to this Agreement as may be assessed by
the Director General of Inland Revenue under the provisions of the Real Property Gains Tax Act, 1976. 

  

	9.02	The Vendor and the Purchaser shall, within 30 days of execution of this Agreement comply with Section 13 of the Real Property Gains Tax Act 1976 by submitting the relevant
return forms to the Director-General of Inland Revenue (and will forward a copy thereof to the other party) and comply with all necessary directions that may be issued by him in respect thereto. 

  

	9.03	The Vendor shall immediately forward or cause to be forwarded to the Purchaser a copy of the certificate of clearance or the notice of assessment in respect of the disposal of the
Property issued by the Director-General of Inland Revenue (as the case may be) immediately upon the receipt of the same by the Vendor. 

  

	9.04	The Vendor hereby agrees, covenants and undertakes with the Purchaser to keep the Purchaser fully indemnified against all claims, costs, damages, fines or penalties which may be
brought, suffered or levied against the Purchaser as a result of the Vendor not complying with any of the provisions of the Real Property Gains Tax Act 1976, including any claims by the Director-General of Inland Revenue arising from any default in
payment of any Real Property Gains Tax payable on the disposal of the Property pursuant to this Agreement. 

  

	10.	CONDUCT PENDING COMPLETION 

  

	10.01	Between the date hereof and Completion, unless contemplated or permitted by the terms of this Agreement, the Vendor shall not without the prior consent in writing of the Purchaser:

  

	 	(a)	cause or permit the breach of any of the representations, warranties or undertakings set out in Clause 11.01; 

  

	 	(b)	sell, transfer, convey, charge, mortgage, issue, license, exchange or deal with the Property, or any interest therein in any way; 

  

	 	(c)	create any fixed or floating charge, lien or other Encumbrance of whatever nature over the whole or any part of or interest in the Property; 

  

	 	(d)	grant any power of attorney to any person whatsoever to deal with the Property, including powers to sell, transfer, convey, charge, mortgage, issue, license, exchange, or deal with
the Property, or any interest therein; 

  

 13 

	 	(e)	permit any of its insurance policies on the Property, to lapse or do anything which would make any policy of insurance void or voidable; or 

  

	 	(f)	stop, suspend, threaten to stop or suspend payment of all or part of its debts or take any steps for its winding-up or enter into any assignment or arrangement or composition with
or for the benefit of its creditors or enter or allow any moratorium in respect of any or part of its indebtedness or appoint or have appointed a receiver and/or manager over the whole or any part of the Property, or enter into any formal or
informal scheme of arrangement with any or all of its creditors. 

  

	11.	REPRESENTATIONS AND WARRANTIES 

  

	11.01.	The Vendor hereby undertakes, represents and warrants with the Purchaser that: 

  

	 	(a)	as at the date hereof, the Vendor is the registered and beneficial owner of the Property and the Vendor has not and will not after the date of this Agreement create any Encumbrance
over the Property or any part thereof, and that the Vendor is absolutely entitled to transfer the Property to the Purchaser upon the terms and conditions of this Agreement; 

  

	 	(b)	as at the date hereof, the Vendor is not in breach and shall not after the date of this Agreement commit any breach of any express or implied condition of title to the Property;

  

	 	(c)	as at the date hereof, there are neither claims adversely affecting the rights of the Vendor to possession of the Property nor the transfer of the Property from the Vendor to the
Purchaser contemplated under this Agreement; 

  

	 	(d)	as at the date hereof, the Vendor, to the best of its knowledge (after due and careful enquiry), has not received any notices, from any federal, state or local government authority
or statutory board which remain outstanding and which will or may prejudice or adversely affect the present or continued use and enjoyment by the Vendor of the Property or which will or may subject the Vendor to any onerous charge or liability, and
that the Vendor shall use commercially reasonable efforts to promptly give notice to the Purchaser of any such notices, orders or requirements it receives from any federal, state, local government authority or statutory board, but in no event longer
than forty-five (45) days from receipt thereof, for a period of one (year) after the date of this Agreement; and 

  

	 	(e)	the Vendor is authorised and legally competent to execute, deliver and perform the terms of this Agreement. 

  

	11.02	The Purchaser hereby undertakes, represents and warrants with the Vendor that the Purchaser is authorised and legally competent to execute, deliver and perform the terms of this
Agreement. 

  

 14 

	12.	TERMINATION AND BREACH 

  

	12.01	The parties agree that each of the following events shall constitute a breach of this Agreement by the Purchaser: 

  

	 	(a)	if the Purchaser fails to deliver the Promissory Note in favour of the Vendor as required under this Agreement in accordance with the provisions of this Agreement;

  

	 	(b)	if the Purchaser materially fails, neglects or refuses to complete the sale in accordance with the provisions of the Agreement; or 

  

	 	(c)	if the Purchaser materially fails, neglects or refuses to perform or comply with any of its undertakings and covenants on its part herein to be performed. 

 

	12.02	Upon the occurrence of any of the events set out in Clause 12.01, and provided that such event occurred prior to Completion and registration of the Transfers to the Purchaser, the
Vendor may give to the Purchaser written notice of the breach of this Agreement and in the event that the Purchaser fails to remedy the breach within twenty one (21) days from the date of the notice, the Vendor shall be at liberty at any time
thereafter to either seek the specific performance of this Agreement or give notice to the Purchaser to terminate the Agreement and the provisions of Clause 12.03 shall apply, provided there is no default or blameworthy conduct on the part of the
Vendor or the Solicitors, when acting for and on behalf of the Vendors, whether directly or indirectly. 

  

	12.03	If a notice terminating this Agreement is duly given under Clause 12.02: 

  

	 	(a)	the Vendor shall, if the Promissory Note has been delivered to the Vendor, surrender or cause the Promissory Note issued by the Purchaser to be surrendered together with a written
confirmation that the Vendor had not, prior to the surrender of the Promissory Note, sold, transferred, factored or otherwise dealt with its interest under the Promissory Note; 

  

	 	(b)	the Purchaser shall return the Transfer Documents received by it to the Vendor and withdraw the Purchaser’s Caveat lodged against the Property and re-deliver to the Vendor
possession of the Property, if such possession had been delivered to the Purchaser; and 

  

	 	(c)	the Vendor shall be entitled to pursue any other rights or remedies available to it hereunder or at law, arising from such breach by the Purchaser, 

  
 and thereafter the Vendor shall be at liberty to resell or deal with the
Property as the Vendor deems fit and at the Vendor’s absolute discretion. 
  

	12.04	The parties agree that each of the following events shall constitute a breach of this Agreement by the Vendor: 

  

	 	(a)	if the Vendor fails, neglects or refuses to complete the sale in accordance with the provisions of this Agreement; or 

  

 15 

	 	(b)	if the Vendor materially fails, neglects or refuses to perform or comply with any of its agreements, undertakings and covenants on its part herein to be performed.

  

	12.05	Upon the occurrence of any of the events set out in Clause 12.04, and provided that such event occurred prior to Completion and registration of the Transfers to the Purchaser, the
Purchaser may give to the Vendor a written notice of the breach and in the event that the Vendor fails to remedy the breach within twenty one (21) days from the date of the notice, the Purchaser shall be at liberty at any time thereafter to
either seek the specific performance of this Agreement or give notice to the Vendor to terminate the Agreement and the provisions of Clause 12.06 shall apply. 

  

	12.06	If a notice terminating this Agreement is duly given under Clause 12.05: 

  

	 	(a)	the Vendor shall, if the Promissory Note has been delivered to the Vendor, surrender or cause the Promissory Note issued by the Purchaser to be surrendered to the Purchaser together
with a written confirmation that the Vendor had not, prior to the surrender of the Promissory Note, sold, transferred, factored or otherwise dealt with its interest under the Promissory Note; 

  

	 	(b)	the Purchaser shall return the Transfer Documents received by them to the Vendor withdraw the Purchaser’s Caveat lodged against the Property and re-deliver to the Vendor
possession of the Property, if such possession had been delivered to the Purchaser; and 

  

	 	(c)	the Purchaser shall be entitled to pursue any other rights or remedies available to it hereunder or at law, arising from such breach by the Vendor. 

  

	13.	COMPULSORY ACQUISITION OF THE PROPERTY 

  

	 	13.01	In the event of the exercise of any rights or the taking of any steps under the Land Acquisition Act 1960, by the government or any other authority having power in that behalf,
between the date of this Agreement and the date upon which the Transfers are presented for registration at the Land Registry, to acquire all or any part of the Property, the Vendor shall notify the Purchaser forthwith upon the Vendor receiving
notice of the exercise of such rights or the taking of such steps. 

  

	 	13.02	On receiving a notice under Clause 13.01, the Purchaser shall be entitled within thirty (30) days of receipt thereof to give a notice to the Vendor either to:

  

	 	(a)	terminate this Agreement; or 

  

	 	(b)	require the continuation with and completion of this Agreement. 

  

	13.03	In the event that a notice terminating this Agreement is duly given under Clause 13.02, the provisions of Clause 12.06 (with the exception of Clause 12.06(c)) shall apply mutatis
mutandis. 

  

 16 

	13.04	In the event that a notice requiring the continuation with and completion of this Agreement is duly given under Clause 13.02 then:- 

  

	 	(a)	the Vendor shall notify the government, or such other acquiring authority, of the interest of the Purchaser in the Property and the terms of this Agreement;

  

	 	(b)	the Vendor shall in all matters concerning such acquisition do all acts and things as may be reasonably requested by the Purchaser (at the cost and expense of the Purchaser) for
acquiring the best compensation payable; 

  

	 	(c)	any compensation payable under such acquisition shall belong to the Purchaser as and when the same shall be paid, provided that any such compensation paid to or received by the
Vendor may, at the option of the Purchaser, be retained by the Vendor and applied towards payment of the Purchase Price, of which the corresponding amount will be deducted accordingly from the amount owing by the Purchaser to the Vendor as evidenced
in the Promissory Note issued by the Purchaser; and 

  

	 	(d)	all monies received by the Vendor is to be held on trust for the Purchaser. 

  

	14.	PURCHASER’S CAVEAT 

  

	14.01	The Purchaser shall, at any time after the date of this Agreement, be entitled at its own cost and expense to present and register a private caveat (“the Purchaser’s
Caveat”) against any dealing with the Property for the purpose of protecting the interest of the Purchaser in the Property arising from this Agreement prior to the completion of this Agreement. 

  

	14.02	The Purchaser shall also execute the relevant withdrawal of private caveat documents and deposit the same with the Solicitors upon execution of this Agreement. For the avoidance of
doubt, the Purchaser hereby authorises the Solicitors to present the said withdrawal of private caveat documents with the relevant Land Office or Land Registry upon the termination of this Agreement pursuant to Clause 12 of this Agreement.

  

	14.03	The Purchaser shall not be obliged to remove or cause to be removed the Purchaser’s Caveat registered on the Property in the event the Vendor defaults on this Agreement and
that the Promissory Note has not been surrendered together with a written confirmation that the Vendor had not, prior to the surrender of the Promissory Note, sold, transferred, factored or otherwise dealt with its interest under the Promissory
Note, if the Promissory Note has been delivered to the Vendor. 

  

	15.	APPORTIONMENT 

  

	15.01	Subject to any provision relating thereto contained in the Tenancy Agreement, all quit rent, rates, assessments, taxes, insurance premiums, utility bills and other outgoings
payable, if any, in respect of the Property shall be apportioned between the Vendor and the Purchaser as at the Completion Date in accordance with this Agreement and shall be paid to the party who is entitled to such apportionment within thirty
(30) days of receipt of any invoice in respect thereof. 

  

 17 

	15.02	The Vendor shall indemnify the Purchaser against any loss or penalty which may be imposed by the relevant authority in respect of any late or non-payment of any quit rent, rate,
assessment and other outgoings payable in respect of the Property due and payable prior to the Completion Date. 

  

	16.	COSTS 

  

	16.01	Both parties shall share equally the solicitors’ costs of, and incidental to, the preparation of this Agreement. 

  

	16.02	The Purchaser shall bear the responsibility for all stamp duties and registration fees payable on this Agreement and the Transfers. The Purchaser shall also be responsible for all
costs relating to the lodgment or withdrawal of any Purchaser’s Caveat. 

  

	17.	NOTICES 

  

	17.01	Each notice, demand or other communication given or made under this Agreement shall be in writing and delivered or sent to the relevant party at its address or fax number set out
below (or such other address or fax number as the addressee has by five (5) days’ prior written notice specified to the other parties): 

  

			
	To the Vendor:	 	            ADVANCED MICRO DEVICES EXPORT SDN. BHD.
	 	 	            Phase II, Free Industrial Zone,
	 	 	            11900 Bayan Lepas,
	 	 	            Pulau Pinang, Malaysia.
	 	 	            Fax Number:+604 252-2145
	 	 	            Attention: Controller
		
	 	 	            With a copy to:
	 	 	            ADVANCED MICRO DEVICES, INC.
	 	 	            5204 E. Ben White Blvd., MS 562
	 	 	            Austin, Texas 78741
	 	 	            Attn: General Counsel
	 	 	            Telephone: (512) 602-0148
	 	 	            Fax: (512) 602-4999
		
	 	 	            ADVANCED MICRO DEVICES, INC.
	 	 	            One AMD Place
	 	 	            P.O. Box 3453
	 	 	             M/S 68
             Sunnyvale, CA

	 	 	            Attn: Real Estate Manager

  

 18 

			
	 	 	            For purposes of email notices, send to the following:
	 	 	            Linda Ducote: Linda.ducote@amd.com
		
	To the Purchaser:	 	            SPANSION (PENANG) SDN. BHD.
	 	 	            Phase 2 Free Industrial Zone
	 	 	            11900 Bayan Lepas
	 	 	            Pulau Pinang, Malaysia.
	 	 	            Fax Number: +604 252-2145
	 	 	            Attention: Controller
		
	 	 	            With a copy to:
	 	 	            SPANSION, LLC
	 	 	            915 De Guigne, MS 176
	 	 	            Sunnyvale, California 94088
	 	 	            Attn: General Counsel
	 	 	            Telephone: (408) 749-5165
	 	 	            Fax: (408) 749-7443
		
	 	 	            SPANSION, LLC
	 	 	            One AMD Place
	 	 	            P.O. Box 3453
	 	 	            M/S 68
	 	 	            Sunnyvale, CA
	 	 	            Attn: Real Estate Manager
	 	 	            For purposes of email notices, send to the following:
	 	 	            Christine Husk: Christine.husk@spansion.com

  

	17.02	Any notice, demand or other communication so addressed to the relevant party shall be deemed to have been delivered (a) if given or made by letter, when actually delivered to
the relevant address; (b) if given or made by fax, when duly despatched with confirmed acknowledgement. 

  

	18.	GENERAL MATTERS AND COVENANTS 

  

	18.01	The parties shall give all such assistance and information to the other and execute and do and procure all other necessary persons or companies, if any, to execute and do all such
further acts, deeds, assurances and things as may be reasonably required so that full effect may be given to the terms and conditions of this Agreement. 

  

	19.	SUCCESSORS AND ASSIGNS 

  

	19.01	No party may assign this Agreement without the prior written consent of the other party, subject that the Purchaser may assign this Agreement to any of its related corporations.

  

	19.02	This Agreement shall be binding upon and enure for the benefit of the respective nominees and permitted assigns of the parties. 

  

 19 

	20.	MISCELLANEOUS 

  

	20.01	This Agreement supercedes any other agreement, letter, correspondence (oral or written or expressed or implied) entered into prior to this Agreement in respect of the matters dealt
with in this Agreement and constitutes the entire agreement between the parties with respect to the matters dealt with herein. 

  

	20.02	This Agreement may be executed in any number of counterparts or duplicates each of which shall be an original, but such counterparts or duplicates shall together constitute one and
the same agreement. 

  

	20.03	After the date hereof, the parties may agree to amend the Agreement upon mutually agreed terms. No amendment of, or addition to the provisions of this Agreement shall be effective
unless it is in writing and signed by both parties. 

  

	20.04	Time wherever mentioned is of the essence of this Agreement, both as regards the dates and periods specifically mentioned and as to any dates and periods which may be agreed in
writing between the parties be substituted for them. 

  

	20.05	Knowledge or acquiescence by any party of, or in, any breach of any of the provisions of this agreement will not operate as, or be deemed to be, a waiver of such provisions and,
notwithstanding such knowledge or acquiescence, such party will remain entitled to exercise its rights and remedies under this agreement, and at law, and to require strict performance of all of the provisions of this agreement.

  

	20.06	The rights and remedies provided in this agreement are cumulative, and are not exclusive of any rights or remedies of the parties provided at law, and no failure or delay in the
exercise or the partial exercise of any such right or remedy or the exercise of any other right or remedy will affect or impair any such right or remedy. 

  

	21.	INVALIDITY AND SEVERABILITY 

  

	21.01	If any term, condition, stipulation, provision, covenant or undertaking of this Agreement is or may become under any written law, or is found by any court or administrative body of
competent jurisdiction to be, illegal, void, invalid, prohibited or unenforceable then:- 

  

	 	(a)	such term, condition, stipulation, provision, covenant or undertaking shall be ineffective to the extent of such illegality, voidness, invalidity, prohibition or unenforceability;

  

	 	(b)	the remaining terms, conditions, stipulations, provisions, covenants or undertaking of this Agreement shall remain in full force and effect; and 

  

	 	(c)	the parties shall use their respective best endeavours to negotiate and agree a substitute term, condition, stipulation, provision, covenant or undertaking which is valid and
enforceable and achieves to the greatest extent possible the economic, legal and commercial objectives of such illegal, void, invalid, prohibited or unenforceable term, condition, stipulation, provision, covenant or undertaking.

  

 20 

	22.	FURTHER ASSURANCE 

  

	22.01	The parties hereto hereby covenant with one another that they will respectively sign execute and do all such acts documents and things as may be necessary to give valid effect to
the terms and conditions of this Agreement. 

  

	23.	LAW AND JURISDICTION 

  

	23.01	This Agreement shall be governed and interpreted in accordance with the laws of Malaysia. 

  

	23.02	The parties irrevocably submit to the non-exclusive jurisdiction of the Malaysian courts to settle any disputes which may arise out of or in connection with this Agreement.

  
 **********************************************

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 21 

 IN WITNESS WHEREOF this Agreement has been executed on the day and year first above written. 
  

			
	For the Vendor
	
	ADVANCED MICRO DEVICES EXPORT SDN. BHD.
		
	By:	 	 /s/ Mohd Sofi

	Name:	 	 Mohd Sofi

	Title:	 	 Director

	Date:	 	 December 20, 2005

	
	For the Purchaser
	
	SPANSION (PENANG) SDN. BHD.
		
	By:	 	 /s/ Clyde C. Stiteler

	Name:	 	 Clyde C. Stiteler

	Title:	 	 Director

	Date:	 	 December 20, 2005

  

 22Spansion Inc. 2005 Equity Incentive Plan

 Exhibit 10.17 
  
 SPANSION INC. 
 2005 EQUITY INCENTIVE PLAN 
  
 1. PURPOSE OF PLAN

  
 The purpose of this Spansion, Inc. 2005 Equity Incentive
Plan (this “Plan”) of Spansion Inc., a Delaware corporation (the “Corporation”), is to promote the success of the Corporation, to increase stockholder value by providing an additional means through the grant of
awards to attract, motivate, retain and reward selected employees and other eligible persons, and through the grant of equity-based awards to help further align the interests of stockholders and those selected to participate in this Plan.

  
 2. ELIGIBILITY 
  
 The Administrator (as such term is defined in Section 3.1) may grant
awards under this Plan only to those persons that the Administrator determines to be Eligible Persons. An “Eligible Person” is any person who is either: (a) an officer (whether or not a director) or employee of the Corporation
or one of its Subsidiaries; (b) a director of the Corporation or one of its Subsidiaries; or (c) an individual consultant or advisor who renders or has rendered bona fide services (other than services in connection with the offering or
sale of securities of the Corporation or one of its Subsidiaries in a capital-raising transaction or as a market maker or promoter of securities of the Corporation or one of its Subsidiaries) to the Corporation or one of its Subsidiaries and who is
selected to participate in this Plan by the Administrator; provided, however, that a person who is otherwise an Eligible Person under clause (c) above may participate in this Plan only if such participation would not adversely affect either the
Corporation’s eligibility to use Form S-8 to register under the Securities Act of 1933, as amended (the “Securities Act”), the offering and sale of shares issuable under this Plan by the Corporation or the Corporation’s
compliance with any other applicable laws. An Eligible Person who has been granted an award (a “participant”) may, if otherwise eligible, be granted additional awards if the Administrator shall so determine. As used herein,
“Subsidiary” means any corporation or other entity a majority of whose outstanding voting stock or voting power is beneficially owned directly or indirectly by the Corporation; and “Board” means the Board of
Directors of the Corporation. 
  
 3. PLAN ADMINISTRATION 
  

	 	3.1	 The Administrator. This Plan shall be administered by and all awards under this Plan shall be authorized by the Administrator. The
“Administrator” means the Board or one or more committees appointed by the Board, including the compensation committee, or another committee (within its delegated authority) to administer all or certain aspects of this Plan. Any
such committee shall be comprised solely of one or more directors or such number of directors as may be required under applicable law. A committee may delegate some or all of its authority to another committee so constituted. The Board or a
committee comprised solely of directors may also delegate, to the extent permitted by 

 Section 157(c) of the Delaware General Corporation Law and any other applicable law, to one or more
officers of the Corporation, its powers under this Plan (a) to designate the officers and employees of the Corporation and its Subsidiaries who will receive grants of awards under this Plan, and (b) to determine the number of shares
subject to, and the other terms and conditions of, such awards. The Board may delegate different levels of authority to different committees with administrative and grant authority under this Plan. Unless otherwise provided in the Bylaws of the
Corporation or the applicable charter of any Administrator: (a) a majority of the members of the acting Administrator shall constitute a quorum, and (b) the vote of a majority of the members present assuming the presence of a quorum or the
unanimous written consent of the members of the Administrator shall constitute action by the acting Administrator. 
  
 With respect to awards intended to satisfy the requirements for performance-based compensation under Section 162(m) of the Internal Revenue Code of
1986, as amended (the “Code”), this Plan shall be administered by a committee consisting solely of two or more outside directors (as this requirement is applied under Section 162(m) of the Code); provided, however, that the
failure to satisfy such requirement shall not affect the validity of the action of any committee otherwise duly authorized and acting in the matter. Award grants, and transactions in or involving awards, intended to be exempt under Rule 16b-3 under
the Securities Exchange Act of 1934, as amended (the “Exchange Act”), must be duly and timely authorized by the Board or a committee consisting solely of two or more non-employee directors (as this requirement is applied under Rule
16b-3 promulgated under the Exchange Act). To the extent required by any applicable listing agency, this Plan shall be administered by a committee composed entirely of independent directors (within the meaning of the applicable listing agency).

  

	 	3.2	Powers of the Administrator. Subject to the express provisions of this Plan, the Administrator is authorized and empowered to do all things necessary or
desirable in connection with the authorization of awards and the administration of this Plan (in the case of a committee or delegation to one or more officers, within the authority delegated to that committee or person(s)), including, without
limitation, the authority to: 

  

	 	(a)	determine eligibility and, from among those persons determined to be eligible, the particular Eligible Persons who will receive an award under this Plan; 

 

	 	(b)	grant awards to Eligible Persons, determine the price at which securities will be offered or awarded and the number of securities to be offered or awarded to any of such persons,
determine the other specific terms and conditions of such awards consistent with the express limits of this Plan, establish the installments (if any) in which such awards shall become exercisable or shall vest (which may include, without limitation,
performance and/or time-based schedules), or determine that no delayed exercisability or vesting is required, establish any applicable performance targets, and establish the events of termination or reversion of such awards;

	 	(c)	approve the forms of award agreements (which need not be identical either as to type of award or among participants); 

  

	 	(d)	construe and interpret this Plan and any agreements defining the rights and obligations of the Corporation, its Subsidiaries, and participants under this Plan, further define the
terms used in this Plan, and prescribe, amend and rescind rules and regulations relating to the administration of this Plan or the awards granted under this Plan; 

  

	 	(e)	cancel, modify, or waive the Corporation’s rights with respect to, or modify, discontinue, suspend, or terminate any or all outstanding awards, subject to any required consent
under Section 8.6.5; 

  

	 	(f)	accelerate or extend the vesting or exercisability or extend the term of any or all such outstanding awards (in the case of options or stock appreciation rights, within the maximum
ten-year term of such awards) in such circumstances as the Administrator may deem appropriate (including, without limitation, in connection with a termination of employment or services or other events of a personal nature) subject to any required
consent under Section 8.6.5; 

  

	 	(g)	adjust the number of shares of Common Stock subject to any award, adjust the price of any or all outstanding awards or otherwise change previously imposed terms and conditions, in
such circumstances as the Administrator may deem appropriate, in each case subject to Sections 4 and 8.6, and provided that in no case (except due to an adjustment contemplated by Section 7 or any repricing that may be approved by stockholders)
shall such an adjustment constitute a repricing (by amendment, cancellation and regrant, exchange or other means) of the per share exercise or base price of any option or stock appreciation right; 

  

	 	(h)	determine the date of grant of an award, which may be a designated date after but not before the date of the Administrator’s action (unless otherwise designated by the
Administrator, the date of grant of an award shall be the date upon which the Administrator took the action granting an award); 

  

	 	(i)	determine whether, and the extent to which, adjustments are required pursuant to Section 7 hereof and authorize the termination, conversion, substitution or succession of
awards upon the occurrence of an event of the type described in Section 7; 

  

	 	(j)	acquire or settle (subject to Sections 7 and 8.6) rights under awards in cash, stock of equivalent value, or other consideration; 

	 	(k)	determine the fair market value of the Common Stock or awards under this Plan from time to time and/or the manner in which such value will be determined; and

  

	 	(l)	adjust performance measures, performance conditions and performance goals applicable to awards granted under this Plan in light of any material change in corporate capitalization,
any material corporate transaction, any change to accounting policies or practices, the effects of special charges to the Corporation’s earnings, or any other similar special circumstance, in each case to the extent consistent with
Section 162(m) of the Code with respect to awards intended to satisfy the requirements for performance-based compensation thereunder, to the extent (if any) the Administrator determines that the adjustment is necessary or advisable in order to
preserve the intended incentives and benefits related to such awards. 

  

	 	3.3	Binding Determinations. Any action taken by, or inaction of, the Corporation or the Administrator relating or pursuant to this Plan and within its authority
hereunder or under applicable law shall be within the absolute discretion of that entity or body and shall be conclusive and binding upon all persons. Neither the Board nor any Board committee, nor any member thereof or person acting at the
direction thereof, shall be liable for any act, omission, interpretation, construction or determination made in good faith in connection with this Plan (or any award made under this Plan), and all such persons shall be entitled to indemnification
and reimbursement by the Corporation in respect of any claim, loss, damage or expense (including, without limitation, attorneys’ fees) arising or resulting therefrom to the fullest extent permitted by law and/or under any directors and officers
liability insurance coverage that may be in effect from time to time. 

  

	 	3.4	Reliance on Experts. In making any determination or in taking or not taking any action under this Plan, the Board or a committee, as the case may be, may obtain
and may rely upon the advice of experts, including employees and professional advisors to the Corporation. No director, officer or agent of the Corporation or any of its Subsidiaries shall be liable for any such action or determination taken or made
or omitted in good faith. 

  

	 	3.5	Delegation. The Administrator may delegate ministerial, non-discretionary functions to individuals who are officers or employees of the Corporation or any of
its Subsidiaries or to third parties. 

  
 4. SHARES OF COMMON
STOCK SUBJECT TO THE PLAN; SHARE LIMITS 
  

	 	4.1	Shares Available. Subject to the provisions of Section 7.1, the capital stock that may be delivered under this Plan shall be shares of the
Corporation’s authorized but unissued Common Stock and any shares of its Common Stock held as treasury shares. For purposes of this Plan, “Common Stock” shall mean the Class A common stock of the Corporation and such other
securities or property as may become the subject of awards under this Plan, or may become subject to such awards, pursuant to an adjustment made under Section 7.1. 

	 	4.2	Share Limits. The maximum number of shares of Common Stock that may be delivered pursuant to awards granted to Eligible Persons under this Plan (the
“Share Limit”) is Nine Million Five Hundred Thousand (9, 500,000) shares. The following limits also apply with respect to awards granted under this Plan: 

  

	 	(a)	The maximum number of shares of Common Stock that may be delivered pursuant to options qualified as incentive stock options granted under this Plan is Nine Million Five Hundred
Thousand (9, 500,000) shares. 

  

	 	(b)	The maximum number of shares of Common Stock subject to those options and stock appreciation rights that are granted during any calendar year to any individual under this Plan is
One Million Five Hundred Thousand (1, 500,000) shares. 

  
 Each of the foregoing numerical limits is subject to adjustment as contemplated by Section 4.3, Section 7.1, and Section 8.10. 
  

	 	4.3	Awards Settled in Cash, Reissue of Awards and Shares. To the extent that an award is settled in cash or a form other than shares of Common Stock, the shares
that would have been delivered had there been no such cash or other settlement shall not be counted against the shares available for issuance under this Plan. In the event that shares of Common Stock are delivered in respect of a dividend equivalent
right, stock appreciation right, or other award, only the actual number of shares delivered with respect to the award shall be counted against the share limits of this Plan. Shares that are subject to or underlie awards which expire or for any
reason are cancelled or terminated, are forfeited, fail to vest, or for any other reason are not paid or delivered under this Plan shall again be available for subsequent awards under this Plan. Shares that are exchanged by a participant or withheld
by the Corporation as full or partial payment in connection with any award under this Plan, as well as any shares exchanged by a participant or withheld by the Corporation or one of its Subsidiaries to satisfy the tax withholding obligations related
to any award under this Plan, shall be available for subsequent awards under this Plan. Refer to Section 8.10 for application of the foregoing share limits with respect to assumed awards. The foregoing adjustments to the share limits of this
Plan are subject to any applicable limitations under Section 162(m) of the Code with respect to awards intended as performance-based compensation thereunder. 

  

	 	4.4	Reservation of Shares; No Fractional Shares. The Corporation shall at all times reserve a number of shares of Common Stock sufficient to cover the
Corporation’s obligations and contingent obligations to deliver shares with respect to awards then outstanding under this Plan (exclusive of any dividend equivalent obligations to the extent the Corporation has the right to settle such rights
in cash). No fractional shares shall be delivered under this Plan. The Administrator may pay cash in lieu of any fractional shares in settlements of awards under this Plan. 

 5. AWARDS 
  

	 	5.1	Type and Form of Awards. The Administrator shall determine the type or types of award(s) to be made to each selected Eligible Person.
Awards may be granted singly, in combination or in tandem. Awards also may be made in combination or in tandem with, in replacement of, as alternatives to, or as the payment form for grants or rights under any other employee or compensation plan of
the Corporation or one of its Subsidiaries. The types of awards that may be granted under this Plan are: 

  
 5.1.1 Stock Options. A stock option is the grant of a right to purchase a specified number of shares of Common Stock during a
specified period as determined by the Administrator. An option may be intended as an incentive stock option within the meaning of Section 422 of the Code (an “ISO”) or a nonqualified stock option (an option not intended to be
an ISO). The award agreement for an option will indicate if the option is intended as an ISO; otherwise it will be deemed to be a nonqualified stock option. The maximum term of each option (ISO or nonqualified) shall be ten (10) years. The per
share exercise price for each option shall be determined by the Administrator at the time of grant of the award. When an option is exercised, the exercise price for the shares to be purchased shall be paid in full in cash or such other method
permitted by the Administrator consistent with Section 5.4. 
  
 5.1.2 Additional Rules Applicable to ISOs. To the extent that the aggregate fair market value (determined at the time of grant of the applicable option) of stock with respect to which ISOs first become exercisable by a
participant in any calendar year exceeds $100,000, taking into account both Common Stock subject to ISOs under this Plan and stock subject to ISOs under all other plans of the Corporation or one of its Subsidiaries (or any parent or predecessor
corporation to the extent required by and within the meaning of Section 422 of the Code and the regulations promulgated thereunder), such options shall be treated as nonqualified stock options. In reducing the number of options treated as ISOs
to meet the $100,000 limit, the most recently granted options shall be reduced first. To the extent a reduction of simultaneously granted options is necessary to meet the $100,000 limit, the Administrator may, in the manner and to the extent
permitted by law, designate which shares of Common Stock are to be treated as shares acquired pursuant to the exercise of an ISO. ISOs may only be granted to employees of the Corporation or one of its subsidiaries (for this purpose, the term
“subsidiary” is used as defined in Section 424(f) of the Code, which generally requires an unbroken chain of ownership of at least 50% of the total combined voting power of all classes of stock of each subsidiary in the chain
beginning with the Corporation and ending with the subsidiary in question). The per share exercise price of each ISO shall not be less than 100% of the fair market value of a share of Common Stock on the date of grant of the option. There shall be
imposed in any award agreement relating to ISOs such other terms and conditions as from time to time are required in order that the option be an “incentive stock option” as that term is defined in Section 422 of the Code. No ISO may
be granted to any person who, at the time the option is granted, owns (or is deemed to own under Section 424(d) of the Code) shares of outstanding Common Stock 

 possessing more than 10% of the total combined voting power of all classes of stock of the Corporation,
unless the exercise price of such option is at least 110% of the fair market value of the stock subject to the option and such option by its terms is not exercisable after the expiration of five years from the date such option is granted.

  
 5.1.3 Stock Appreciation Rights. A stock
appreciation right or “SAR” is a right to receive a payment, in cash and/or Common Stock, equal to the excess of the fair market value of a specified number of shares of Common Stock on the date the SAR is exercised over the
“base price” of the SAR, as such base price is established by the Administrator at the time of grant of the award. The maximum term of an SAR shall be ten (10) years. 
  
 5.1.4 Other Awards. The other types of awards that may be granted under this Plan include:
(a) stock bonuses, restricted stock, performance stock, stock units, phantom stock, dividend equivalents, or similar rights to purchase or acquire shares, whether at a fixed or variable price or ratio related to the Common Stock, upon the
passage of time, the occurrence of one or more events, or the satisfaction of performance criteria or other conditions, or any combination thereof; or (b) any similar securities with a value derived from the value of or related to the Common
Stock and/or returns thereon. 
  

	 	5.2	Award Agreements. Each award shall be evidenced by an award agreement in the form approved by the Administrator and, if required by the Administrator, executed by the
recipient of the award. The Administrator may authorize any officer of the Corporation (other than the particular award recipient) to execute any or all award agreements on behalf of the Corporation. The award agreement shall set forth the material
terms and conditions of the award as established by the Administrator consistent with the express limitations of this Plan. 

  

	 	5.3	Deferrals and Settlements. Payment of awards may be in the form of cash, Common Stock, other awards or combinations thereof as the Administrator shall determine, and
with such restrictions as it may impose. The Administrator may also require or permit participants to elect to defer the issuance of shares or the settlement of awards in cash under such rules and procedures as it may establish under this Plan. The
Administrator may also provide that deferred settlements include the payment or crediting of interest or other earnings on the deferral amounts, or the payment or crediting of dividend equivalents where the deferred amounts are denominated in
shares. 

  

	 	5.4	Consideration for Common Stock or Awards. The purchase price for any award granted under this Plan or the Common Stock to be delivered pursuant to an award, as
applicable, may be paid by means of any lawful consideration as determined by the Administrator, including, without limitation, one or a combination of the following methods: 

  

	 	•	services rendered by the recipient of such award; 

	 	•	cash, check payable to the order of the Corporation, or electronic funds transfer; 

  

	 	•	notice and third party payment in such manner as may be authorized by the Administrator; 

  

	 	•	the delivery of previously owned shares of Common Stock; 

  

	 	•	by a reduction in the number of shares otherwise deliverable pursuant to the award; or 

  

	 	•	subject to such procedures as the Administrator may adopt, pursuant to a “cashless exercise” with a third party who provides financing for the purposes of (or who
otherwise facilitates) the purchase or exercise of awards. 

  
 In no event shall any shares newly-issued by the Corporation be issued for less than the minimum lawful consideration for such shares or for consideration other than consideration permitted by applicable state law. In
the event that the Administrator allows a participant to exercise an award by delivering shares of Common Stock previously owned by such participant and unless otherwise expressly provided by the Administrator, any shares delivered which were
initially acquired by the participant from the Corporation (upon exercise of a stock option or otherwise) must have been owned by the participant at least six months as of the date of delivery. Shares of Common Stock used to satisfy the exercise
price of an option shall be valued at their fair market value on the date of exercise. The Corporation will not be obligated to deliver any shares unless and until it receives full payment of the exercise or purchase price therefor and any related
withholding obligations under Section 8.5 and any other conditions to exercise or purchase have been satisfied. Unless otherwise expressly provided in the applicable award agreement, the Administrator may at any time eliminate or limit a
participant’s ability to pay the purchase or exercise price of any award or shares by any method other than cash payment to the Corporation. 
  

	 	5.5	Definition of Fair Market Value. For purposes of this Plan, “fair market value” shall mean, unless otherwise determined or provided by the
Administrator in the circumstances, the last price for a share of Common Stock as furnished by the National Association of Securities Dealers, Inc. (the “NASD”) through the NASDAQ National Market Reporting System (the “National
Market”) for the date in question or, if no sales of Common Stock were reported by the NASD on the National Market on that date, the last price for a share of Common Stock as furnished by the NASD through the National Market for the next
preceding day on which sales of Common Stock were reported by the NASD. The Administrator may, however, provide with respect to one or more awards that the fair market value shall equal the last price for a share of Common Stock as furnished by the
NASD through the National Market available on the date in question or the average of the high and low trading prices of a share of Common Stock as furnished by the NASD through the National Market for the date in question or the most recent trading
day. If the Common Stock is no longer listed or is no longer actively traded on the National Market as of the applicable date, 

 the fair market value of the Common Stock shall be the value as reasonably determined by the
Administrator for purposes of the award in the circumstances. The Administrator also may adopt a different methodology for determining fair market value with respect to one or more awards if a different methodology is necessary or advisable to
secure any intended favorable tax, legal or other treatment for the particular award(s) (for example, and without limitation, the Administrator may provide that fair market value for purposes of one or more awards will be based on an average of
closing prices (or the average of high and low daily trading prices) for a specified period preceding the relevant date). 
  

	 	5.6	Transfer Restrictions. 

  
 5.6.1 Limitations on Exercise and Transfer. Unless otherwise expressly provided in (or pursuant to) this Section 5.6, by
applicable law and by the award agreement, as the same may be amended, (a) all awards are non-transferable and shall not be subject in any manner to sale, transfer, anticipation, alienation, assignment, pledge, encumbrance or charge;
(b) awards shall be exercised only by the participant; and (c) amounts payable or shares issuable pursuant to any award shall be delivered only to (or for the account of) the participant. 
  
 5.6.2 Exceptions. The Administrator may permit awards
to be exercised by and paid to, or otherwise transferred to, other persons or entities pursuant to such conditions and procedures, including limitations on subsequent transfers, as the Administrator may, in its sole discretion, establish in writing.
Any permitted transfer shall be subject to compliance with applicable federal and state securities laws. 
  
 5.6.3 Further Exceptions to Limits on Transfer. The exercise and transfer restrictions in Section 5.6.1 shall not apply to:

  

	 	(a)	transfers to the Corporation, 

  

	 	(b)	the designation of a beneficiary to receive benefits in the event of the participant’s death or, if the participant has died, transfers to or exercise by the participant’s
beneficiary, or, in the absence of a validly designated beneficiary, transfers by will or the laws of descent and distribution (and exercise by the participant’s executor or personal representative), 

  

	 	(c)	subject to any applicable limitations on ISOs, transfers to a family member (or former family member) pursuant to a domestic relations order if approved or ratified by the
Administrator, 

  

	 	(d)	if the participant has suffered a disability, permitted transfers or exercises on behalf of the participant by his or her legal representative, or 

  

	 	(e)	the authorization by the Administrator of “cashless exercise” procedures with third parties who provide financing for the purpose of (or who otherwise facilitate) the
exercise of awards consistent with applicable laws and the express authorization of the Administrator. 

	 	5.7	International Awards. One or more awards may be granted to Eligible Persons who provide services to the Corporation or one of its Subsidiaries outside of the
United States. Any awards granted to such persons may be granted pursuant to the terms and conditions of any applicable sub-plans, if any, appended to this Plan and approved by the Administrator. 

  
 6. EFFECT OF TERMINATION OF SERVICE ON AWARDS 
  

	 	6.1	General. The Administrator shall establish the effect of a termination of employment or service on the rights and benefits under each award under this Plan and
in so doing may make distinctions based upon, inter alia, the cause of termination and type of award. If the participant is not an employee of the Corporation or one of its Subsidiaries and provides other services to the Corporation or one of its
Subsidiaries, the Administrator shall be the sole judge for purposes of this Plan (unless a contract or the award otherwise provides) of whether the participant continues to render services to the Corporation or one of its Subsidiaries and the date,
if any, upon which such services shall be deemed to have terminated. 

  

	 	6.2	Events Not Deemed Terminations of Service. Unless the express policy of the Corporation or one of its Subsidiaries, or the Administrator, otherwise provides,
the employment relationship shall not be considered terminated in the case of (a) sick leave, (b) military leave, or (c) any other leave of absence authorized by the Corporation or one of its Subsidiaries, or the Administrator;
provided that unless reemployment upon the expiration of such leave is guaranteed by contract or law or the express policy of the Corporation or one of its Subsidiaries, or the Administrator, otherwise provides, such leave is for a period of not
more than three months. In the case of any employee of the Corporation or one of its Subsidiaries on an approved leave of absence, continued vesting of the award while on leave from the employ of the Corporation or one of its Subsidiaries may be
suspended until the employee returns to service, unless the Administrator otherwise provides or applicable law otherwise requires. In no event shall an award be exercised after the expiration of the term set forth in the award agreement.

  

	 	6.3	Effect of Change of Subsidiary Status. For purposes of this Plan and any award, if an entity ceases to be a Subsidiary of the Corporation a termination of
employment or service shall be deemed to have occurred with respect to each Eligible Person in respect of such Subsidiary who does not continue as an Eligible Person in respect of another entity within the Corporation or another Subsidiary that
continues as such after giving effect to the transaction or other event giving rise to the change in status. 

  
 7. ADJUSTMENTS; ACCELERATION 
  

	 	7.1	Adjustments. Upon or in contemplation of: any reclassification, recapitalization, stock split (including a stock split in the form of a stock dividend) or
reverse stock split (“stock split”); any merger, combination, consolidation, or other reorganization; any spin-off, split-up, or similar extraordinary dividend 

 distribution in respect of the Common Stock (whether in the form of securities or property); any exchange
of Common Stock or other securities of the Corporation, or any similar, unusual or extraordinary corporate transaction in respect of the Common Stock; or a sale of all or substantially all the business or assets of the Corporation as an entirety;
then the Administrator shall, in such manner, to such extent (if any) and at such time as it deems appropriate and equitable in the circumstances: 
  

	 	(a)	proportionately adjust any or all of (1) the number and type of shares of Common Stock (or other securities) that thereafter may be made the subject of awards (including the
specific share limits, maximums and numbers of shares set forth elsewhere in this Plan), (2) the number, amount and type of shares of Common Stock (or other securities or property) subject to any or all outstanding awards, (3) the grant,
purchase, or exercise price (which term includes the base price of any SAR or similar right) of any or all outstanding awards, (4) the securities, cash or other property deliverable upon exercise or payment of any outstanding awards, or
(5) (subject to Section 8.8.3(a)) the performance standards applicable to any outstanding awards, or 

  

	 	(b)	make provision for a cash payment or for the assumption, substitution or exchange of any or all outstanding share-based awards or the cash, securities or property deliverable to the
holder of any or all outstanding share-based awards, based upon the distribution or consideration payable to holders of the Common Stock upon or in respect of such event. 

  
 The Administrator may adopt such valuation methodologies for outstanding awards as it deems reasonable in the event of a
cash or property settlement and, in the case of options, SARs or similar rights, but without limitation on other methodologies, may base such settlement solely upon the excess if any of the per share amount payable upon or in respect of such event
over the exercise or base price of the award. With respect to any award of an ISO, the Administrator may make such an adjustment that causes the option to cease to qualify as an ISO without the consent of the affected participant. 
  
 In any of such events, the Administrator may take such action prior to such
event to the extent that the Administrator deems the action necessary to permit the participant to realize the benefits intended to be conveyed with respect to the underlying shares in the same manner as is or will be available to stockholders
generally. In the case of any stock split or reverse stock split, if no action is taken by the Administrator, the proportionate adjustments contemplated by clause (a) above shall nevertheless be made. 
  

	 	7.2	Automatic Acceleration of Awards. Upon a dissolution of the Corporation or other event described in Section 7.1 that the Corporation does not survive (or
does not survive as a public company in respect of its Common Stock), then each then-outstanding option and SAR shall become fully vested, all shares of restricted stock then outstanding shall fully vest free of restrictions, and each other award
granted under this Plan that is then outstanding shall become payable to the holder 

 of such award; provided that such acceleration provision shall not apply, unless otherwise expressly
provided by the Administrator, with respect to any award to the extent that the Administrator has made a provision for the substitution, assumption, exchange or other continuation or settlement of the award, or the award would otherwise continue in
accordance with its terms, in the circumstances. 
  

	 	7.3	Possible Acceleration of Awards. Without limiting Section 7.2, in the event of a Change in Control Event (as defined below), the Administrator may, in its
discretion, provide that any outstanding option or SAR shall become fully vested, that any share of restricted stock then outstanding shall fully vest free of restrictions, and that any other award granted under this Plan that is then outstanding
shall be payable to the holder of such award. The Administrator may take such action with respect to all awards then outstanding or only with respect to certain specific awards identified by the Administrator in the circumstances. For purposes of
this Plan, “Change in Control Event” means any of the following: 

  

	 	(a)	The acquisition by any individual, entity or group (within the meaning of Section 13(d)(3) or 14(d)(2) of the Exchange Act), other than Advanced Micro Devices, Inc. and its
affiliates (collectively, “AMD”) (a “Person”) of beneficial ownership (within the meaning of Rule 13d-3 promulgated under the Exchange Act), directly or indirectly, of more than thirty three percent (33%) of
either (1) the then-outstanding shares of common stock of the Corporation (the “Outstanding Company Common Stock”) or (2) the combined voting power of the then-outstanding voting securities of the Corporation entitled to
vote generally in the election of directors (the “Outstanding Company Voting Securities”); provided, however, that, for purposes of this clause (a), the following acquisitions shall not constitute a Change in Control Event;
(A) any acquisition directly from the Corporation, (B) any acquisition by the Corporation, (C) any acquisition by any employee benefit plan (or related trust) sponsored or maintained by the Corporation or any affiliate of the
Corporation or a successor, or (D) any acquisition by any entity pursuant to a transaction that complies with Sections (c)(1), (2) and (3) below; 

  

	 	(b)	Individuals who, as of the Effective Date, constitute the Board or the board of directors of any entity that directly or indirectly owns all of the outstanding equity securities of
the Corporation (the “Incumbent Board”) cease for any reason to constitute at least a majority of the Board (or the board of directors of any entity that directly or indirectly owns all of the outstanding equity securities of the
Corporation); provided, however, that any individual becoming a director subsequent to the Effective Date whose election, or nomination for election by the Corporation’s stockholders, was approved by a vote of at least two-thirds of the
individuals then comprising the Incumbent Board (including for these purposes, the new members whose election or nomination was so approved, without counting the member and the member’s predecessor twice) shall be considered as though such
individual were a member of the 

 Incumbent Board, but excluding, for this purpose, any such individual whose initial assumption of office
occurs as a result of an actual or threatened election contest with respect to the election or removal of directors or other actual or threatened solicitation of proxies or consents by or on behalf of a Person other than the Board or the board of
directors of any entity that directly or indirectly owns all of the outstanding equity securities of the Corporation; 
  

	 	(c)	Consummation of a reorganization, merger, statutory share exchange or consolidation or similar corporate transaction involving the Corporation or any of its Subsidiaries or any
parent entity, a sale or other disposition of all or substantially all of the assets of the Corporation, or the acquisition of assets or stock of another entity by the Corporation or any of its Subsidiaries (each, a “Business
Combination”), in each case unless, following such Business Combination, (1) all or substantially all of the individuals and entities that were the beneficial owners of the Outstanding Company Common Stock and the Outstanding Company
Voting Securities immediately prior to such Business Combination beneficially own, directly or indirectly, more than 50% of the then-outstanding shares of common stock and the combined voting power of the then-outstanding voting securities entitled
to vote generally in the election of directors, as the case may be, of the entity resulting from such Business Combination (including, without limitation, an entity that, as a result of such transaction, owns the Corporation or all or substantially
all of the Corporation’s assets directly or through one or more subsidiaries (a “Parent”)) in substantially the same proportions as their ownership immediately prior to such Business Combination of the Outstanding Company
Common Stock and the Outstanding Company Voting Securities, as the case may be, (2) no Person (excluding any entity resulting from such Business Combination or a Parent or AMD or any employee benefit plan (or related trust) of the Corporation
or such entity resulting from such Business Combination or Parent) beneficially owns, directly or indirectly, more than thirty three percent (33%) of, respectively, the then-outstanding shares of common stock of the entity resulting from such
Business Combination or the combined voting power of the then-outstanding voting securities of such entity, except to the extent that the ownership in excess of thirty three percent (33%) existed prior to the Business Combination, and
(3) at least a majority of the members of the board of directors or trustees of the entity resulting from such Business Combination or a Parent were members of the Incumbent Board at the time of the execution of the initial agreement or of the
action of the Board providing for such Business Combination; or 

  

	 	(d)	Approval by the stockholders of the Corporation of a complete liquidation or dissolution of the Corporation other than in the context of a transaction that does not constitute a
Change in Control Event under clause (c) above; 

  
 provided, however, that in no case shall the acquisition by Fujitsu Limited and its affiliates (collectively “Fujitsu”) of Outstanding Company Common Stock or 

 Outstanding Company Voting Securities constitute a Change in Control Event so long as such level of
ownership is (1) less than AMD’s level of ownership in such securities, and (2) not more than forty percent (40%) of the Outstanding Company Common Stock or Outstanding Company Voting Securities, respectively. 
  

	 	7.4	Early Termination of Awards. Any award that is then outstanding and has been accelerated as required or contemplated by Section 7.2 or 7.3 (or would have
been so accelerated but for Section 7.5 or 7.6, and including any award that is then outstanding and otherwise fully vested) shall terminate upon the related event referred to in Section 7.2 or upon a Change in Control Event, as
applicable, subject to any provision that has been expressly made by the Administrator, through a plan of reorganization or otherwise, for the survival, substitution, assumption, exchange or other continuation or settlement of such award and
provided that, in the case of options and SARs that will not survive, be substituted for, assumed, exchanged, or otherwise continued or settled in the transaction, the holder of such award shall be given reasonable advance notice of the impending
termination and a reasonable opportunity to exercise his or her outstanding options and SARs in accordance with their terms before the termination of such awards (except that in no case shall more than ten days’ notice of accelerated vesting
and the impending termination be required and any acceleration may be made contingent upon the actual occurrence of the event). 

  

	 	7.5	Other Acceleration Rules. Any acceleration of awards pursuant to this Section 7 shall comply with applicable legal requirements and, if necessary to
accomplish the purposes of the acceleration or if the circumstances require, may be deemed by the Administrator to occur a limited period of time not greater than 30 days before the event. Without limiting the generality of the foregoing, the
Administrator may deem an acceleration to occur immediately prior to the applicable event and/or reinstate the original terms of an award if an event giving rise to an acceleration does not occur. The Administrator may override the provisions of
Section 7.2, 7.3, 7.4 and/or 7.6 by express provision in the award agreement and may accord any Eligible Person a right to refuse any acceleration, whether pursuant to the award agreement or otherwise, in such circumstances as the Administrator
may approve. The portion of any ISO accelerated in connection with a Change in Control Event or any other action permitted hereunder shall remain exercisable as an ISO only to the extent the applicable $100,000 limitation on ISOs is not exceeded. To
the extent exceeded, the accelerated portion of the option shall be exercisable as a nonqualified stock option under the Code. 

  

	 	7.6	Possible Rescission of Acceleration. If the vesting of an award has been accelerated expressly in anticipation of an event or upon stockholder approval of an
event and the Administrator later determines that the event will not occur, the Administrator may rescind the effect of the acceleration as to any then outstanding and unexercised or otherwise unvested awards. 

 8. OTHER PROVISIONS 
  

	 	8.1	Compliance with Laws. This Plan, the granting and vesting of awards under this Plan, the offer, issuance and delivery of shares of Common Stock, the acceptance
of promissory notes and/or the payment of money under this Plan or under awards are subject to compliance with all applicable federal and state laws, rules and regulations (including but not limited to state and federal securities law, federal
margin requirements) and to such approvals by any listing, regulatory or governmental authority as may, in the opinion of counsel for the Corporation, be necessary or advisable in connection therewith. The person acquiring any securities under this
Plan will, if requested by the Corporation or one of its Subsidiaries, provide such assurances and representations to the Corporation or one of its Subsidiaries as the Administrator may deem necessary or desirable to assure compliance with all
applicable legal and accounting requirements. 

  

	 	8.2	Discretionary Plan. No person shall have any claim or rights to be granted an award (or additional awards, as the case may be) under this Plan, subject to any
express contractual rights (set forth in a document other than this Plan) to the contrary. 

  

	 	8.3	No Employment/Service Contract. Nothing contained in this Plan (or in any other documents under this Plan or in any award) shall confer upon any Eligible Person
or other participant any right to continue in the employ or other service of the Corporation or one of its Subsidiaries, constitute any contract or agreement of employment or other service or affect an employee’s status as an employee at will,
nor shall interfere in any way with the right of the Corporation or one of its Subsidiaries to change a person’s compensation or other benefits, or to terminate his or her employment or other service, with or without cause. Nothing in this
Section 8.3, however, is intended to adversely affect any express independent right of such person under a separate employment or service contract other than an award agreement. 

  

	 	8.4	Plan Not Funded. Awards payable under this Plan shall be payable in shares or from the general assets of the Corporation, and no special or separate reserve,
fund or deposit shall be made to assure payment of such awards. No participant, beneficiary or other person shall have any right, title or interest in any fund or in any specific asset (including shares of Common Stock, except as expressly otherwise
provided) of the Corporation or one of its Subsidiaries by reason of any award hereunder. Neither the provisions of this Plan (or of any related documents), nor the creation or adoption of this Plan, nor any action taken pursuant to the provisions
of this Plan shall create, or be construed to create, a trust of any kind or a fiduciary relationship between the Corporation or one of its Subsidiaries and any participant, beneficiary or other person. To the extent that a participant, beneficiary
or other person acquires a right to receive payment pursuant to any award hereunder, such right shall be no greater than the right of any unsecured general creditor of the Corporation. 

  

	 	8.5	Tax Withholding. Upon any grant, exercise, vesting, or payment of any award, upon the disposition of shares of Common Stock acquired pursuant to the exercise

 
of an ISO prior to satisfaction of the holding period requirements of Section 422 of the Code, or upon any other event in connection with an award that
may constitute a tax withholding event under applicable law, the Corporation or one of its Subsidiaries shall have the right at its option to: 
  

	 	(a)	require the participant (or the participant’s personal representative or beneficiary, as the case may be) to pay or provide for payment of at least the minimum amount of any
taxes which the Corporation or one of its Subsidiaries may be required to withhold with respect to such award event or payment; or 

  

	 	(b)	deduct from any amount otherwise payable in cash to the participant (or the participant’s personal representative or beneficiary, as the case may be) the minimum amount of any
taxes which the Corporation or one of its Subsidiaries may be required to withhold with respect to such cash payment. 

  
 In any case where a tax is required to be withheld in connection with the delivery of shares of Common Stock under this Plan, the Administrator may in its
sole discretion (subject to Section 8.1) grant (either at the time of the award or thereafter) to the participant the right to elect, pursuant to such rules and subject to such conditions as the Administrator may establish, to have the
Corporation reduce the number of shares to be delivered by (or otherwise reacquire) the appropriate number of shares, valued in a consistent manner at their fair market value or at the sales price in accordance with authorized procedures for
cashless exercises, necessary to satisfy the minimum applicable withholding obligation on exercise, vesting or payment. In no event shall the shares withheld exceed the minimum whole number of shares required for tax withholding under applicable
law. The Corporation may, with the Administrator’s approval, accept one or more promissory notes from any Eligible Person in connection with taxes required to be withheld upon the exercise, vesting or payment of any award under this Plan;
provided that any such note shall be subject to terms and conditions established by the Administrator and the requirements of applicable law. 
  

	 	8.6	Effective Date, Termination and Suspension, Amendments. 

  

8.6.1 Effective Date. This Plan is effective as of December 15, 2005, the date of its approval by the Board (the
“Effective Date”). This Plan shall be submitted for and subject to stockholder approval no later than twelve months after the Effective Date. Unless earlier terminated by the Board, this Plan shall terminate at the close of business
on the day before the tenth anniversary of the Effective Date. After the termination of this Plan either upon such stated expiration date or its earlier termination by the Board, no additional awards may be granted under this Plan, but previously
granted awards (and the authority of the Administrator with respect thereto, including the authority to amend such awards) shall remain outstanding in accordance with their applicable terms and conditions and the terms and conditions of this Plan.

 8.6.2 Board Authorization. The Board (including, without limitation, any committee
thereof to the extent consistent with its delegated authority) may, at any time, terminate or, from time to time, amend, modify or suspend this Plan, in whole or in part. No awards may be granted during any period that the Board suspends this Plan.

  
 8.6.3 Stockholder Approval. To the
extent then required by applicable law or any applicable listing agency or required under Sections 162, 422 or 424 of the Code to preserve the intended tax consequences of this Plan, or deemed necessary or advisable by the Board, any amendment to
this Plan shall be subject to stockholder approval. 
  
 8.6.4
Amendments to Awards. Without limiting any other express authority of the Administrator under (but subject to) the express limits of this Plan, the Administrator by agreement or resolution may waive conditions of or limitations on
awards to participants that the Administrator in the prior exercise of its discretion has imposed, without the consent of a participant, and (subject to the requirements of Sections 3.2 and 8.6.5) may make other changes to the terms and conditions
of awards. Any amendment or other action that would constitute a repricing of an award is subject to the limitations set forth in Section 3.2(g). 
  
 8.6.5 Limitations on Amendments to Plan and Awards. No amendment, suspension or termination of this Plan or amendment of any
outstanding award agreement shall, without written consent of the participant, affect in any manner materially adverse to the participant any rights or benefits of the participant or obligations of the Corporation under any award granted under this
Plan prior to the effective date of such change. Changes, settlements and other actions contemplated by Section 7 shall not be deemed to constitute changes or amendments for purposes of this Section 8.6. 
  

	 	8.7	Privileges of Stock Ownership. Except as otherwise expressly authorized by the Administrator or this Plan, a participant shall not be entitled to any privilege
of stock ownership as to any shares of Common Stock not actually delivered to and held of record by the participant. No adjustment will be made for dividends or other rights as a stockholder for which a record date is prior to such date of delivery.

  

	 	8.8	Governing Law; Construction; Severability. 

  
 8.8.1 Choice of Law. This Plan, the awards, all documents evidencing awards and all other related documents shall be governed by, and
construed in accordance with the laws of the State of Delaware. 
  
 8.8.2 Severability. If a court of competent jurisdiction holds any provision invalid and unenforceable, the remaining provisions of this Plan shall continue in effect. 

	 	8.8.3	Plan Construction. 

  

	 	(a)	Rule 16b-3. It is the intent of the Corporation that the awards and transactions permitted by awards be interpreted in a manner that, in the case of participants who are or
may be subject to Section 16 of the Exchange Act, qualify, to the maximum extent compatible with the express terms of the award, for exemption from matching liability under Rule 16b-3 promulgated under the Exchange Act. Notwithstanding the
foregoing, the Corporation shall have no liability to any participant for Section 16 consequences of awards or events under awards if an award or event does not so qualify. 

  

	 	(b)	Section 162(m). Options and SARs granted to employees of the Corporation or one of its Subsidiaries with an exercise or base price not less than the fair market value of
a share of Common Stock at the date of grant that are approved by a committee composed solely of two or more outside directors (as this requirement is applied under Section 162(m) of the Code) shall be deemed to be intended as performance-based
compensation within the meaning of Section 162(m) of the Code unless such committee provides otherwise at the time of grant of the award. It is the further intent of the Corporation that (to the extent the Corporation or one of its Subsidiaries
or awards under this Plan may be or become subject to limitations on deductibility under Section 162(m) of the Code) any such awards that are granted to or held by a person subject to Section 162(m) will qualify as performance-based
compensation or otherwise be exempt from deductibility limitations under Section 162(m). 

  

	 	8.9	Captions. Captions and headings are given to the sections and subsections of this Plan solely as a convenience to facilitate reference. Such headings shall not
be deemed in any way material or relevant to the construction or interpretation of this Plan or any provision thereof. 

  

	 	8.10	Stock-Based Awards in Substitution for Stock Options or Awards Granted by Other Corporation. Awards may be granted to Eligible Persons in substitution for or in
connection with an assumption of employee stock options, SARs, restricted stock or other stock-based awards granted by other entities to persons who are or who will become Eligible Persons in respect of the Corporation or one of its Subsidiaries, in
connection with a distribution, merger or other reorganization by or with the granting entity or an affiliated entity, or the acquisition by the Corporation or one of its Subsidiaries, directly or indirectly, of all or a substantial part of the
stock or assets of the employing entity. The awards so granted need not comply with other specific terms of this Plan, provided the awards reflect only adjustments giving effect to the assumption or substitution consistent with the conversion
applicable to the Common Stock in the transaction and any change in the issuer of the security. Any shares that are delivered and any awards that are granted by, or become obligations of, the Corporation, as a result of the assumption by the
Corporation of, or in substitution for, outstanding 

 awards previously granted by an acquired company (or previously granted by a predecessor employer (or
direct or indirect parent thereof) in the case of persons that become employed by the Corporation or one of its Subsidiaries in connection with a business or asset acquisition or similar transaction) shall not be counted against the Share Limit or
other limits on the number of shares available for issuance under this Plan. 
  

	 	8.11	Non-Exclusivity of Plan. Nothing in this Plan shall limit or be deemed to limit the authority of the Board or the Administrator to grant awards or authorize any
other compensation, with or without reference to the Common Stock, under any other plan or authority. 

  

	 	8.12	No Corporate Action Restriction. The existence of this Plan, the award agreements and the awards granted hereunder shall not limit, affect or restrict in any way the
right or power of the Board or the stockholders of the Corporation to make or authorize: (a) any adjustment, recapitalization, reorganization or other change in the capital structure or business of the Corporation or any Subsidiary,
(b) any merger, amalgamation, consolidation or change in the ownership of the Corporation or any Subsidiary, (c) any issue of bonds, debentures, capital, preferred or prior preference stock ahead of or affecting the capital stock (or the
rights thereof) of the Corporation or any Subsidiary, (d) any dissolution or liquidation of the Corporation or any Subsidiary, (e) any sale or transfer of all or any part of the assets or business of the Corporation or any Subsidiary, or
(f) any other corporate act or proceeding by the Corporation or any Subsidiary. No participant, beneficiary or any other person shall have any claim under any award or award agreement against any member of the Board or the Administrator, or the
Corporation or any employees, officers or agents of the Corporation or any Subsidiary, as a result of any such action. 

  

	 	8.13	Other Company Benefit and Compensation Programs. Payments and other benefits received by a participant under an award made pursuant to this Plan shall not be
deemed a part of a participant’s compensation for purposes of the determination of benefits under any severance or termination pay plan or arrangement, any retirement or supplemental retirement plan or arrangement, or any other compensation,
welfare or benefit plan or arrangement, if any, provided by the Corporation or any Subsidiary, except where the Administrator expressly otherwise provides or authorizes in writing. Awards under this Plan may be made in addition to, in combination
with, as alternatives to or in payment of grants, awards or commitments under any other plans or arrangements of the Corporation or its Subsidiaries.

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