Document:

Term Loan and Security Agreement, dated as of July 11, 2003

 Exhibit 10.51 
  

 AMENDED AND RESTATED TERM LOAN AGREEMENT 
  
 Dated as of July 11, 2003 
  
 Among 
  
 THE FINANCIAL INSTITUTIONS NAMED HEREIN 
  
 as the Lenders, 
  
 GENERAL ELECTRIC CAPITAL CORPORATION 
  
 as the Agent 
  
 and 
  
 FASL
LLC, 
  
 as the Borrower 
  

 TABLE OF CONTENTS 
  

	 Section

	  	 	  	Page

		
	 ARTICLE 1 INTERPRETATION OF THIS AGREEMENT
	  	2
			
	     1.1  
	  	 Definitions
	  	2
	     1.2  
	  	 Accounting Terms; UCC Terms
	  	21
	     1.3  
	  	 Interpretive Provisions
	  	21
		
	 ARTICLE 2 TERM LOANS
	  	22
			
	     2.1  
	  	 Term Loans
	  	22
		
	 ARTICLE 3 INTEREST AND FEES
	  	23
			
	     3.1  
	  	 Interest
	  	23
	     3.2  
	  	 [Reserved]
	  	23
	     3.3  
	  	 Maximum Interest Rate
	  	23
	     3.4  
	  	 Fees
	  	24
		
	 ARTICLE 4 PAYMENTS AND PREPAYMENTS
	  	24
			
	     4.1  
	  	 Loans
	  	24
	     4.2  
	  	 Termination of Facility
	  	24
	     4.3  
	  	 Payments by the Borrower
	  	25
	     4.4  
	  	 [Reserved]
	  	26
	     4.5  
	  	 Apportionment, Application and Reversal of Payments
	  	26
	     4.6  
	  	 Indemnity for Returned Payments
	  	26
	     4.7  
	  	 Agent’s and Lenders’ Books and Records; Monthly Statements
	  	27
	     4.8  
	  	 Mandatory Prepayments of Loans
	  	27
		
	 ARTICLE 5 TAXES, YIELD PROTECTION AND ILLEGALITY
	  	28
			
	     5.1  
	  	 Taxes
	  	28
	     5.2  
	  	 Illegality
	  	29
	     5.3  
	  	 Increased Costs and Reduction of Return
	  	29
	     5.4  
	  	 Funding Losses
	  	29
	     5.5  
	  	 Inability to Determine Rates
	  	30
	     5.6  
	  	 Automatic Conversion of LIBOR Rate Loans to Base Rate Loans
	  	30
	     5.7  
	  	 Certificates of Lenders
	  	30
	     5.8  
	  	 Survival
	  	30
		
	 ARTICLE 6 COLLATERAL
	  	31
			
	     6.1  
	  	 Perfection and Protection of Security Interest.
	  	31
	     6.2  
	  	 Title to, Liens on, and Sale and Use of Collateral
	  	31

	 Section

	  	 	  	Page

	     6.3  
	  	 Access and Examination; Confidentiality
	  	31
		
	 ARTICLE 7 BOOKS AND RECORDS; FINANCIAL INFORMATION; NOTICES
	  	32
			
	     7.1  
	  	 Books and Records
	  	32
	     7.2  
	  	 Financial Information
	  	32
	     7.3  
	  	 Notices to the Lenders
	  	34
		
	 ARTICLE 8 GENERAL WARRANTIES AND REPRESENTATIONS
	  	36
			
	     8.1  
	  	 Authorization, Validity, and Enforceability of this Agreement and the Loan Documents
	  	36
	     8.2  
	  	 Validity and Priority of Security Interest
	  	37
	     8.3  
	  	 Organization and Qualification
	  	37
	     8.4  
	  	 Corporate Name; Prior Transactions
	  	37
	     8.5  
	  	 Subsidiaries and Affiliates
	  	37
	     8.6  
	  	 Financial Statements and Projections
	  	37
	     8.7  
	  	 Solvency
	  	38
	     8.8  
	  	 Debt
	  	38
	     8.9  
	  	 Distributions
	  	38
	     8.10
	  	 Title to Property
	  	38
	     8.11
	  	 [Reserved]
	  	38
	     8.12
	  	 Litigation
	  	38
	     8.13
	  	 Restrictive Agreements
	  	38
	     8.14
	  	 Labor Disputes
	  	38
	     8.15
	  	 Environmental Laws
	  	39
	     8.16
	  	 No Violation of Law
	  	39
	     8.17
	  	 No Default
	  	39
	     8.18
	  	 ERISA Compliance
	  	40
	     8.19
	  	 Taxes
	  	40
	     8.20
	  	 Regulated Entities
	  	40
	     8.21
	  	 Use of Proceeds; Margin Regulations
	  	40
	     8.22
	  	 Copyrights, Patents, Trademarks and Licenses, etc
	  	41
	     8.23
	  	 No Material Adverse Change
	  	41
	     8.24
	  	 Full Disclosure
	  	41
	     8.25
	  	 Governmental Authorization
	  	41
	     8.26
	  	 Insurance
	  	41
		
	 ARTICLE 9 AFFIRMATIVE AND NEGATIVE COVENANTS
	  	42
			
	     9.1  
	  	 Taxes and Other Obligations
	  	42
	     9.2  
	  	 Corporate Existence and Good Standing
	  	42
	     9.3  
	  	 Compliance with Law and Agreements; Maintenance of Licenses
	  	42
	     9.4  
	  	 Maintenance of Property
	  	43

  

 ii 

	 Section

	  	 	  	Page

	     9.5  
	  	 Insurance
	  	43
	     9.6  
	  	 Environmental Laws
	  	43
	     9.7  
	  	 Compliance with ERISA
	  	44
	     9.8  
	  	 Mergers, Consolidations or Sales
	  	44
	     9.9  
	  	 Distributions; Capital Change; Restricted Investments
	  	45
	     9.10
	  	 Transactions Affecting Collateral or Obligations
	  	45
	     9.11
	  	 Guaranties
	  	45
	     9.12
	  	 Debt
	  	45
	     9.13
	  	 Prepayment
	  	46
	     9.14
	  	 Transactions with Affiliates
	  	46
	     9.15
	  	 Investment Banking and Finder’s Fees
	  	47
	     9.16
	  	 Business Conducted
	  	47
	     9.17
	  	 Liens
	  	47
	     9.18
	  	 Fiscal Year
	  	47
	     9.19
	  	 Adjusted Tangible Net Worth
	  	47
	     9.20
	  	 EBITDA
	  	48
	     9.21
	  	 Fixed Charge Coverage Ratio
	  	48
	     9.22
	  	 Use of Proceeds
	  	48
	     9.23
	  	 Interest Rate Protection
	  	49
	     9.24
	  	 Further Assurances
	  	49
	     9.25
	  	 Impairment of Intercompany Transfers
	  	49
	     9.26
	  	 No Speculative Transactions
	  	50
		
	 ARTICLE 10 CONDITIONS PRECEDENT
	  	50
			
	     10.1
	  	 Conditions to Effectiveness
	  	50
		
	 ARTICLE 11 DEFAULT; REMEDIES
	  	53
			
	     11.1
	  	 Events of Default
	  	53
	     11.2
	  	 Remedies
	  	55
		
	 ARTICLE 12 TERM AND TERMINATION
	  	57
			
	     12.1
	  	 Term and Termination
	  	57
	     12.2
	  	 Termination of Existing Loan Agreement and Mutual Release
	  	57
		
	 ARTICLE 13 AMENDMENTS; WAIVER; PARTICIPATIONS; ASSIGNMENTS; SUCCESSORS
	  	57
			
	     13.1
	  	 No Waivers; Cumulative Remedies
	  	57
	     13.2
	  	 Amendments and Waivers
	  	58
	     13.3
	  	 Assignments; Participations
	  	58
		
	 ARTICLE 14 THE AGENT
	  	60

  

 iii 

	 Section

	  	 	  	Page

	     14.1  
	  	 Appointment and Authorization
	  	60
	     14.2  
	  	 Delegation of Duties
	  	61
	     14.3  
	  	 Liability of Agent
	  	61
	     14.4  
	  	 Reliance by Agent-Related Persons
	  	61
	     14.5  
	  	 Notice of Default
	  	62
	     14.6  
	  	 Credit Decision
	  	62
	     14.7  
	  	 Indemnification
	  	63
	     14.8  
	  	 Agent in Individual Capacity
	  	63
	     14.9  
	  	 Successor Agent
	  	63
	     14.10
	  	 Withholding Tax
	  	64
	     14.11
	  	 Collateral Matters.
	  	64
	     14.12
	  	 Restrictions on Actions by Lenders; Sharing of Payments.
	  	65
	     14.13
	  	 Agency for Perfection
	  	66
	     14.14
	  	 Payments by Agent to Lenders
	  	66
	     14.15
	  	 Concerning the Collateral and the Related Loan Documents
	  	66
	     14.16
	  	 [Reserved]
	  	66
	     14.17
	  	 Relation Among Lenders
	  	66
	     14.18
	  	 Other Agents
	  	66
		
	 ARTICLE 15 MISCELLANEOUS
	  	67
			
	     15.1  
	  	 Cumulative Remedies; No Prior Recourse to Collateral
	  	67
	     15.2  
	  	 Severability
	  	67
	     15.3  
	  	 Governing Law; Choice of Forum; Service of Process; Jury Trial Waiver
	  	67
	     15.4  
	  	 WAIVER OF JURY TRIAL
	  	68
	     15.5  
	  	 Survival of Representations and Warranties
	  	68
	     15.6  
	  	 Other Security and Guaranties
	  	68
	     15.7  
	  	 Fees and Expenses
	  	69
	     15.8  
	  	 Notices
	  	69
	     15.9  
	  	 Waiver of Notices
	  	70
	     15.10
	  	 Binding Effect
	  	71
	     15.11
	  	 Indemnity of the Agent-Related Persons and the Lenders by the Borrower.
	  	71
	     15.12
	  	 Limitation of Liability
	  	71
	     15.13
	  	 Final Agreement
	  	71
	     15.14
	  	 Counterparts
	  	72
	     15.15
	  	 Captions
	  	72
	     15.16
	  	 Right of Setoff
	  	72

  

 iv 

 EXHIBITS AND SCHEDULES 
  
 EXHIBIT A – FORM OF GUARANTY 
  
 EXHIBIT B – FORM OF ENVIRONMENTAL INDEMNITY 
  
 EXHIBIT C – SUBORDINATION PROVISIONS 
  
 SCHEDULE A – PRINCIPAL AMORTIZATION SCHEDULE

  
 SCHEDULE 8.3 – ORGANIZATION AND
QUALIFICATIONS 
  
 SCHEDULE 8.5 –
SUBSIDIARIES 
  
 SCHEDULE 8.8 – DEBT

  
 SCHEDULE 8.10 – TITLE TO PROPERTY

  
 SCHEDULE 8.12 – LITIGATION 

 
 SCHEDULE 8.15 – ENVIRONMENTAL LAW 
  
 SCHEDULE 8.22 – INTELLECTUAL PROPERTY 
  
 SCHEDULE 9.11 – GUARANTIES 
  
 SCHEDULE 9.14 – AFFILIATE TRANSACTIONS 
  
 SCHEDULE 9.17 – EXISTING LIENS 
  

 v 

 AMENDED AND RESTATED TERM LOAN AGREEMENT 
  
 Amended and Restated Term Loan Agreement, dated as of July 11, 2003, among
the financial institutions listed on the signature pages hereof (such financial institutions, together with their respective successors and assigns, are referred to hereinafter each individually as a “Lender” and collectively as the
“Lenders”), GENERAL ELECTRIC CAPITAL CORPORATION, a Delaware corporation (in its individual capacity, “GECC”) with an office at 401 Merritt Seven, 2nd Floor, Norwalk, Connecticut 06856, as agent for the Lenders (in its capacity as agent for itself and the Lenders, together with its successors or affiliates
in such capacity, the “Agent”), and FASL LLC, a Delaware limited liability company with an office at One AMD Place M/S 150, P.O. Box 3453, Sunnyvale, California 94086, as borrower (the “Borrower”). 
  
 W I T N E S S E
T H 
  
 WHEREAS, Advanced Micro Devices, Inc., a
Delaware corporation (“AMD”) and AMD International Sales & Service, Ltd., a Delaware corporation (previously referred to as AMD International Sales and Service, Ltd., “AMDISS”), as co-borrowers previously entered into that
certain Term Loan and Security Agreement dated as of September 27, 2002 (the “Existing Loan Agreement”) with the Agent, GECC Capital Markets Group, Inc., a Delaware corporation, as Sole Arranger and Syndication Agent, Bank of America, N.A.
(“BofA”), in its individual capacity and as documentation agent, and GECC, BofA, and Merrill Lynch Capital (collectively, the “Lenders”), pursuant to which the Lenders have made term loans to AMD and AMDISS in an initial
aggregate amount equal to $110,000,000 of which $89,375,000 is outstanding as of the date hereof (collectively, the “Existing Loans”) secured by certain property, plant and equipment located at AMD’s Fab 25 semiconductor manufacturing
facility in Austin, Texas (the “Fab 25 Facility”), and certain accounts, inventory and other personal property; 
  
 WHEREAS, AMD desires to contribute and/or sell the Fab 25 Facility to the Borrower and assign all of the Existing Loans and other obligations of AMD and
AMDISS under the Existing Loan Agreement to the Borrower; 
  
 WHEREAS, AMD and AMD (U.S.) Holdings, Inc., a Delaware corporation and wholly-owned subsidiary of AMD (“AMD (U.S.) Holdings”), have entered into that certain Capital Contribution Agreement dated as of June 30, 2003, pursuant to
which AMD has agreed to assign all of its right, title and interest in and to, among other things, the Fab 25 Facility, to AMD (U.S.) Holdings; 
  
 WHEREAS, AMD (U.S.) Holdings and AMD Investments, Inc., a Delaware corporation and wholly-owned subsidiary of AMD (U.S.) Holdings (“AMD
Investments”), have entered into that certain Capital Contribution Agreement dated as of June 30, 2003, pursuant to which AMD (U.S.) Holdings has agreed to assign all of its right, title and interest in and to, among other things, the Fab 25
Facility, to AMD Investments; 
  
 WHEREAS, AMD, AMDISS, AMD (U.S.)
Holdings, AMD Investments, and Borrower have entered into that certain Loan Assumption Agreement dated as of July 11, 2003 (the “Assignment Agreement”) pursuant to which (i) AMD has assigned all of its rights and obligations under the
Existing Loans to AMD (U.S.) Holdings, which in turn, has assigned all of its rights and obligations under the Existing Loans to AMD Investments, which in turn, has assigned all of its rights and obligations under the Existing Loans to the Borrower,
and (ii) the Borrower has assumed all of Existing Loans and the obligations under the Existing Loans; 
  

 1 

 WHEREAS, the Borrower, AMD, AMD Investments, Fujitsu Limited, a corporation organized under the laws of
Japan (“Fujitsu”) and Fujitsu Microelectronics Holding, Inc., a Delaware corporation, have entered into that certain Contribution and Assumption Agreement dated as of June 30, 2003 (the “Contribution Agreement”), pursuant to
which AMD Investments has agreed to, and AMD has agreed to cause AMD Investments to, among other things, (a) assign to the Borrower all of the Existing Loans and its obligations under the Existing Loan Agreement, and (b) convey to the Borrower by
grant, bargain and sale deed all of its right, title and interest in the Fab 25 Facility, and the Borrower has agreed to accept the Existing Loans and the Fab 25 Facility. 
  
 WHEREAS, GECC, in its capacities as Agent and Lender under the Existing Loan Agreement, BofA, in its capacities as
Documentation Agent and Lender under the Existing Loan Agreement, and Merrill Lynch Capital as Lender under the Existing Loan Agreement have all agreed to consent to the assignment and transfer of the Existing Loans and the contribution of the Fab
25 Facility to the Borrower on the conditions set forth in the Contribution Agreement and to concurrently amend and restate the Existing Loan Agreement on the terms set forth in this Agreement, including, among others, the execution and delivery by
AMD and Fujitsu of guaranties to guaranty, on an individual and several basis in proportion to their respective 60% and 40% ownership interest in the Borrower, all of the obligations of the Borrower with respect to the Existing Loans and the
Existing Loan Agreement, as amended and restated on the terms set forth in this Agreement and the continuation of the Liens evidenced by Article 6 of the Existing Loan Agreement in favor of the Agent for the benefit of the Lenders to secure
AMD’s obligations under its guaranty; 
  
 NOW, THEREFORE, in
consideration of the mutual conditions and agreements set forth in this Agreement, and for good and valuable consideration, the receipt of which is hereby acknowledged, the Lenders, the Agent, and the Borrower hereby agree to amend and restate the
Existing Loan Agreement to read as follows. 
  
 ARTICLE 1

  
 INTERPRETATION OF THIS AGREEMENT 
  
 1.1 Definitions. As used herein: 
  
 “Accounts” means, in respect of the Borrower, all of the
Borrower’s now owned or hereafter acquired or arising accounts, and any other rights to payment for the sale or lease of goods or rendition of services, whether or not they have been earned by performance. 
  
 “Account Debtor” means each Person obligated in any way on
or in connection with an Account. 
  

 2 

 “Adjusted Net Earnings from Operations” means, with respect to any fiscal period of the
Borrower, the Borrower’s net income after provision for income taxes for such fiscal period, as determined on a consolidated basis in accordance with GAAP and reported on the Financial Statements for such period, excluding any and all of the
following included in such net income: (a) gain arising from the sale of any capital assets; (b) gain arising from any write-up in the book value of any asset; (c) earnings of any Person, substantially all the assets of which have been acquired by
the Borrower or any Subsidiary in any manner, to the extent realized by such other Person prior to the date of acquisition; (d) earnings of any Person in which the Borrower or any Subsidiary has an ownership interest unless (and only to the extent)
such earnings shall actually have been received by the Borrower or any such Subsidiary in the form of cash distributions; (e) earnings of any Person to which assets of the Borrower or any Subsidiary shall have been sold, transferred or disposed of,
or into which the Borrower or any Subsidiary shall have been merged, or which has been a party with the Borrower or any Subsidiary to any consolidation or other form of reorganization, prior to the date of such transaction; (f) gain arising from the
acquisition of debt or equity securities of the Borrower or any Subsidiary or from cancellation or forgiveness of Debt; (g) gain arising from extraordinary items, as determined in accordance with GAAP, or from any other non-recurring transaction;
(h) interest income; and (i) non-cash restructuring charges. 
  
 “Adjusted Tangible Assets” means all of the Borrower’s assets, determined on a consolidated basis in accordance with GAAP, except: (a) deferred assets, other than prepaid insurance and prepaid taxes; (b) patents,
copyrights, trademarks, trade names, franchises, goodwill, and other similar intangibles; and (c) unamortized debt discount and expense. 
  
 “Adjusted Tangible Net Worth” means, at any date: (a) the book value (after deducting related depreciation, obsolescence, amortization,
valuation, and other proper reserves as determined in accordance with GAAP) at which the Adjusted Tangible Assets would be shown on a balance sheet of the Borrower at such date prepared on a consolidated basis in accordance with GAAP less (b)
the amount at which the Borrower’s liabilities would be shown on such consolidated balance sheet, including as liabilities all reserves for contingencies and other potential liabilities which would be required to be shown on such balance sheet.

  
 “Affiliate” means, as to any Person, any
other Person which, directly or indirectly, is in control of, is controlled by, or is under common control with, such Person or which owns, directly or indirectly, ten percent (10%) or more of the outstanding equity interest of such Person. A Person
shall be deemed to control another Person if the controlling Person possesses, directly or indirectly, the power to direct or cause the direction of the management and policies of the other Person, whether through the ownership of voting securities,
by contract, or otherwise. 
  
 “Agent” has the
meaning specified in the introductory paragraph. 
  
 “Agent’s Liens” means the Liens in the Collateral granted to the Agent, for the benefit of the Lenders and the Agent, pursuant to this Agreement and the other Loan Documents. 
  

 3 

 “Agent-Related Persons” means each of the Agent (including any successor administrative
agent), together with its Affiliates, and the officers, directors, employees, agents and attorneys-in-fact of such Persons and Affiliates. 
  
 “Aggregate Term Loans Outstanding” means, at any time, the unpaid principal balance of the Loans. 
  
 “Agreement” means this Amended and Restated Term Loan
Agreement. 
  
 “AMD” has the meaning specified in
the recitals of this Agreement. 
  
 “AMD
Guaranty” means the Secured Guaranty executed by AMD to guarantee the Obligations under this Agreement, in substantially the form of Exhibit A-1. 
  
 “AMD Investments” has the meaning specified in the recitals of this Agreement. 
  
 “AMD Security Agreement” means the Security Agreement dated
as of even date herewith executed by AMD and AMDISS to secure AMD’s obligations under the AMD Guaranty. 
  
 “AMDISS” has the meaning specified in the recitals of this Agreement. 
  
 “Anniversary Date” means each anniversary of the Closing Date. 
  
 “Applicable Margin” means (i) with respect to LIBOR Rate
Loans, 4.00%, and (ii) with respect to Base Rate Loans, in the event of an automatic conversion as provided in Section 5.6, a percentage equal to (A)(1) the LIBOR Rate in effect immediately prior to such automatic conversion plus (2) 4.00%
minus (B) the Base Rate in effect at the time of such automatic conversion. 
  
 “Assignee” has the meaning specified in Section 13.3(a). 
  
 “Assignment Agreement” has the meaning specified in the recitals of this Agreement. 
  
 “Assignment and Acceptance” has the meaning specified in
Section 13.3(a). 
  
 “Assignment of Rents and
Leases” means the Assignment of Rents and Leases entered into by AMD, in favor of the Agent for the benefit of the Lenders, dated as of September 27, 2002 and assigned to the Borrower pursuant to the Assignment Agreement, and amended as of
the date hereof. 
  
 “Attorney Costs” means and
includes all fees, expenses and disbursements of any law firm or other counsel engaged by the Agent. 
  
 “BofA” has the meaning specified in the recitals of this Agreement. 
  

 4 

 “Bankruptcy Code” means Title 11 of the United States Code (11 U.S.C. § 101 et
seq.). 
  
 “Base Rate” means, as of any date
of determination, the rate for one-month nonfinancial commercial paper reported as being in effect on such day (unless such day is not a Business Day, in which event the next preceding Business Day will be used) by the Federal Reserve Board through
the public information telephone line of the Federal Reserve Bank of New York (which rate will, under the current practices of the Board, be published in Federal Reserve Statistical Release H.15(519) during the week following such day) or, if such
rate is not so reported on such day or such next preceding Business Day, the average of the quotations for one-month nonfinancial commercial paper of major money center banks in New York City received at approximately 10:00 a.m., New York City time,
on such day (unless such day is not a Business Day, in which event the next preceding Business Day will be used) by the Agent from three negotiable commercial paper dealers of recognized standing selected by it. 
  
 “Base Rate Loan” means a Loan during any period in which it
bears interest based on the Base Rate. 
  
 “Borrower” has the meaning specified in the introductory paragraph. 
  
 “Business Day” means (a) any day that is not a Saturday, Sunday, or a day on which banks in San Francisco, California or New York, New York are required or permitted to be closed, and (b) with respect
to all notices, determinations, fundings and payments in connection with the LIBOR Rate or LIBOR Rate Loans, any day that is a Business Day pursuant to clause (a) above and that is also a day on which trading in Dollars is carried on by and between
banks in the London interbank market. 
  
 “Capital
Adequacy Regulation” means any guideline, request or directive of any central bank or other Governmental Authority, or any other law, rule or regulation, whether or not having the force of law, in each case, regarding capital adequacy of
any bank or of any corporation controlling a bank. 
  
 “Capital Expenditures” means all payments due (whether or not paid) in respect of the cost of any fixed asset or improvement, or replacement, substitution, or addition thereto, which has a useful life of more than one year,
including those costs arising in connection with the direct or indirect acquisition of such asset by way of increased product or service charges or in connection with a Capital Lease. 
  
 “Capital Lease” means any lease of property by the Borrower or any Subsidiary which, in accordance with
GAAP, should be reflected as a capital lease on the consolidated balance sheet of the Borrower. 
  
 “Change of Control” means 
  
 (a) the direct or indirect acquisition by any person (as such term is used in Section 13(d) and Section 14(d)(2) of the Exchange Act), or related persons
constituting a group (as such term is used in Rule 13d-5 under the Exchange Act), of the power to elect, appoint or cause the election or appointment of at least a majority of the members of the Board of Managers of the Borrower; or 
  

 5 

 (b) any decrease in AMD’s or Fujitsu’s percentage ownership of, voting control over or economic
rights in the Borrower after the Closing Date; provided, that no Change of Control shall have occurred if AMD or Fujitsu shall have transferred up to 10% of the aggregate membership interest in the Borrower to the other party so long as AMD
and Fujitsu continue to own collectively 100% of the aggregate membership interests of the Borrower. 
  
 “Closing Date” has the meaning specified in Section 10.1. 
  
 “Code” means the Internal Revenue Code of 1986, as amended from time to time, and any successor statute,
and regulations promulgated thereunder. 
  
 “Collateral” means, collectively, (i) the Fab 25 Facility, (ii) the Machinery & Equipment, and (iii) all other real and personal property now existing or hereafter acquired which may at any time be or become subject to
a Lien in favor of the Agent or the Lenders pursuant to the Collateral Documents or otherwise, securing the payment and performance of the Obligations. 
  
 “Collateral Documents” means this Agreement, the Deed of Trust, the Assignment of Rents and Leases, the Environmental Indemnity, the
Reciprocal Easement Agreement and any other agreement pursuant to which the Borrower or any other Person provides a Lien on its assets in favor of the Lenders or the Agent for the benefit of the Lenders to secure the Obligations and all financing
statements, fixture filings, assignments, acknowledgments and other filings, documents and agreements made or delivered pursuant thereto. 
  
 “Commitment” means, at any time with respect to a Lender, the principal amount set forth beside such Lender’s name under the heading
“Commitment” on the signature pages of this Agreement or set forth in an Assignment and Acceptance delivered pursuant to Section 13.3, and “Commitments” means, collectively, the aggregate amount of the Commitments
of all of the Lenders. 
  
 “Contaminant” means
any waste, pollutant, hazardous substance, toxic substance, hazardous waste, special waste, petroleum or petroleum-derived substance or waste, asbestos in any form or condition, polychlorinated biphenyls (“PCBs”), radioactive substance, or
any constituent of any such substance or waste. 
  
 “Contribution Agreement” has the meaning specified in the recitals of this Agreement. 
  

 6 

 “Debt” means all liabilities, obligations and indebtedness of the Borrower or any
Subsidiary to any Person, of any kind or nature, now or hereafter owing, arising, due or payable, howsoever evidenced, created, incurred, acquired or owing, whether primary, secondary, direct, contingent, fixed or otherwise, and including, without
in any way limiting the generality of the foregoing: (i) the Borrower’s or any Subsidiary’s liabilities and obligations to trade creditors; (ii) all Obligations; (iii) all obligations and liabilities of any Person secured by any Lien on
the Borrower’s or any Subsidiary’s property, even though the Borrower or such Subsidiary shall not have assumed or become liable for the payment thereof; provided, however, that all such obligations and liabilities which are
limited in recourse to such property shall be included in Debt only to the extent of the book value of such property as would be shown on a balance sheet of the Borrower prepared on a consolidated basis in accordance with GAAP; (iv) all obligations
or liabilities created or arising under any Capital Lease or conditional sale or other title retention agreement with respect to property used or acquired by the Borrower or any Subsidiary, even if the rights and remedies of the lessor, seller or
lender thereunder are limited to repossession of such property; provided, however, that all such obligations and liabilities which are limited in recourse to such property shall be included in Debt only to the extent of the book value
of such property as would be shown on a balance sheet of the Borrower prepared on a consolidated basis in accordance with GAAP; and (v) all obligations and liabilities under Guaranties. Notwithstanding the foregoing, “Debt” shall exclude
all accrued pension fund and other employee benefit plan obligations and liabilities, all deferred taxes and all obligations and liabilities in respect of Rate Protection Arrangements. 
  
 “Debt For Borrowed Money” means, as to any Person, Debt for borrowed money or as evidenced by notes, bonds,
debentures or similar evidences of any such Debt of such Person, the deferred and unpaid purchase price of any property or business (other than trade accounts payable incurred in the ordinary course of business and constituting current liabilities)
and all obligations under Capital Leases. 
  
 “Deed of
Trust” means the Commercial Deed of Trust, Assignment of Rents and Leases, Security Agreement, Fixture Filing and Financing Statement from AMD, as trustor, to the trustee named therein and for the Agent, as beneficiary, dated September 27,
2002 and recorded in the real property records of Travis County, Texas as instrument number 2002181719, as amended, amended and restated, modified, supplemented or renewed and in effect from time to time, and assigned to the Borrower pursuant to the
Assignment Agreement, and amended as of the date hereof. 
  
 “Default” means any event or circumstance which, with the giving of notice, the lapse of time, or both, would (if not cured or otherwise remedied during such time) constitute an Event of Default. 
  
 “Defaulting Lender” has the meaning specified in Section
2.6(i). 
  
 “Default Rate” means a
fluctuating per annum interest rate at all times equal to the sum of (a) the otherwise applicable Interest Rate plus (b) two percent (2%). Each Default Rate shall be adjusted simultaneously with any change in the applicable Interest Rate.

  
 “Disposition” means the sale, lease,
conveyance or other disposition of Machinery & Equipment permitted under Section 9.8. 
  

 7 

 “Distribution” means, in respect of any Person: (a) the payment or making of any
dividend or other distribution of property in respect of capital stock (or any options or warrants for such stock) or membership interests of such Person, other than distributions in capital stock (or any options or warrants for such stock) or
membership interests of the same class; or (b) the redemption or other acquisition by such Person of any capital stock (or any options or warrants for such stock) or membership interests of such Person. 
  
 “DOL” means the United States Department of Labor or any
successor department or agency. 
  
 “Dollar” and
“$” means dollars in the lawful currency of the United States. 
  
 “Domestic Cash” means, as of any date of determination, the amount on such date of all Dollar-denominated cash, cash equivalents and short-term investments (each determined in accordance with GAAP) of
the Borrower and its U.S. Subsidiaries on deposit or otherwise located in the United States on such date, which cash and cash equivalents are not subject to any Liens (excluding Liens permitted under clause (h) of the definition of “Permitted
Liens”). 
  
 “EBITDA” means, with respect to
the Borrower and its Subsidiaries on a consolidated basis for any period, Adjusted Net Earnings from Operations for such period plus, to the extent deducted in computing such Adjusted Net Earnings from Operations, the sum of (a) income tax
expense, (b) interest expense, and (c) depreciation and amortization expense. 
  
 “Eligible Assignee” means (a) any Lender, any Affiliate of any Lender and, with respect to any Lender that is an investment fund that invests in commercial loans, any other investment fund that
invests in commercial loans and that is managed or advised by the same investment advisor as such Lender or by an Affiliate of such investment advisor, and (b) any commercial bank, savings and loan association or savings bank or any other entity
which is an “accredited investor” (as defined in Regulation D under the Securities Act of 1933, as amended from time to time) which extends credit or buys loans as one of its businesses, including insurance companies, mutual funds, lease
financing companies and commercial finance companies, in each case, which has a rating of BBB or higher from S&P and a rating of Baa2 or higher from Moody’s at the date that it becomes a Lender and which, through its applicable lending
office, is capable of lending to Borrower without the imposition of any withholding or similar taxes; provided that no Person determined by Agent to be acting in the capacity of a vulture fund or distressed debt purchaser shall be an Eligible
Assignee and no Person or Affiliate of such Person (other than a Person that is already a Lender) holding subordinated debt or stock issued by any Borrower shall be an Eligible Assignee. 
  
 “Enhanced Covenant Period” means any period of one or more days that Net Domestic Cash is less than the
Target Cash Level. 
  
 “Environmental
Claims” means all claims, however asserted, by any Governmental Authority or other Person alleging potential liability or responsibility for violation of any Environmental Law, or for a Release or injury to the environment. 
  
 “Environmental Indemnity” means the Certificate and
Indemnity Agreement Regarding Hazardous Substances entered into by the Borrower in favor of the Agent and the Lenders, in substantially the form of Exhibit B. 
  

 8 

 “Environmental Laws” means all federal, state or local laws, statutes, common law
duties, rules, regulations, ordinances and codes, together with all administrative orders, directed duties, requests, licenses, authorizations and permits of, and agreements with, any Governmental Authority, in each case relating to environmental,
health, safety and land use matters. 
  
 “Environmental
Lien” means a Lien in favor of any Governmental Authority for (a) any liability under Environmental Laws, or (b) damages arising from, or costs incurred by such Governmental Authority in response to, a Release or threatened Release of a
Contaminant into the environment. 
  
 “Environmental
Permits” has the meaning specified in Section 8.15(b). 
  
 “Environmental Property Transfer Act” means any applicable requirement of law that conditions, restricts, prohibits or requires any notification or disclosure triggered by the closure of any property or the transfer, sale
or lease of any property or deed or title for any property for environmental reasons, including, but not limited to, any so-called “Environmental Cleanup Responsibility Acts” or “Responsible Property Transfer Acts.” 

 
 “Equipment” means all of the Borrower’s now owned
and hereafter acquired machinery, equipment, furniture, furnishings, fixtures, and other tangible personal property (except Inventory), including motor vehicles with respect to which a certificate of title has been issued, aircraft, dies, tools,
jigs, and office equipment, as well as all of such types of property leased by the Borrower and all of the Borrower’s rights and interests with respect thereto under such leases (including options to purchase); together with all present and
future additions and accessions thereto, replacements therefor, component and auxiliary parts and supplies used or to be used in connection therewith, and all substitutes for any of the foregoing, and all manuals, drawings, instructions, warranties
and rights with respect thereto; located from time to time at the Fab 25 Facility. 
  
 “ERISA” means the Employee Retirement Income Security Act of 1974, and regulations promulgated thereunder. 
  
 “ERISA Affiliate” means any trade or business (whether or not incorporated) under common control with the Borrower within the meaning of
Section 414(b) or (c) of the Code (and Sections 414(m) and (o) of the Code for purposes of provisions relating to Section 412 of the Code). 
  
 “ERISA Event” means (a) a Reportable Event with respect to a Pension Plan; (b) a withdrawal by the Borrower or any ERISA Affiliate from a
Pension Plan subject to Section 4063 of ERISA during a plan year in which it was a substantial employer (as defined in Section 4001(a)(2) of ERISA) or a cessation of operations which is treated as such a withdrawal under Section 4062(e) of ERISA;
(c) a complete or partial withdrawal by the Borrower or any ERISA Affiliate from a Multi-employer Plan or notification that a Multi-employer Plan is in reorganization; (d) the filing of a notice of intent to terminate, the treatment of a Plan
amendment as a termination under Section 4041 or 4041A of ERISA, or the commencement of proceedings by the PBGC to terminate a Pension Plan or Multi-employer Plan; (e) the occurrence of an event or condition which might reasonably be expected to
constitute grounds under Section 4042 of ERISA for the termination of, or the appointment of a trustee to administer, any Pension Plan or Multi-employer Plan; or (f) the imposition of any liability under Title IV of ERISA, other than for PBGC
premiums due but not delinquent under Section 4007 of ERISA, upon the Borrower or any ERISA Affiliate. 
  

 9 

 “Event of Default” has the meaning specified in Section 11.1. 
  
 “Event of Loss” means, with respect to all or any portion of
the Machinery & Equipment and the Fab 25 Facility, any of the following: (a) any loss, destruction or damage of such property; (b) any pending or threatened institution of any proceedings for the condemnation or seizure of such property or for
the exercise of any right of eminent domain; or (c) any actual condemnation, seizure or taking, by exercise of the power of eminent domain or otherwise, of such property, or confiscation of such property or the requisition of the use of such
property. 
  
 “Exchange Act” means the Securities
Exchange Act of 1934, and regulations promulgated thereunder. 
  
 “Fab 25 Facility” means the Borrower’s existing and after acquired real property and improvements at its Fab 25 integrated circuit manufacturing facility and ancillary facilities located in Austin, Texas as described
in the Deed of Trust. 
  
 “FASL Japan” means
Fujitsu AMD Semiconductor Limited, a Japanese corporation and wholly-owned subsidiary of the Borrower. 
  
 “FDIC” means the Federal Deposit Insurance Corporation, and any Governmental Authority succeeding to any of its principal functions.

  
 “Federal Funds Rate” means, for any day, the
rate set forth in the weekly statistical release designated as H.15(519), or any successor publication, published by the Federal Reserve Bank of New York (including any such successor, “H.15(519)”) on the preceding Business Day opposite
the caption “Federal Funds (Effective)”; or, if for any relevant day such rate is not so published on any such preceding Business Day, the rate for such day will be the arithmetic mean as determined by the Agent of the rates for the last
transaction in overnight Federal funds arranged prior to 9:00 a.m. (New York City time) on that day by each of three leading brokers of Federal funds transactions in New York City selected by the Agent. 
  
 “Federal Reserve Board” means the Board of Governors of the
Federal Reserve System or any successor thereto. 
  
 “Financial Statements” means, according to the context in which it is used, the financial statements referred to in Section 8.6 or any other financial statements required to be given to the Agent or the Lenders pursuant to
this Agreement. 
  
 “Fiscal Year” means the
Borrower’s fiscal year for financial accounting purposes. The current Fiscal Year of the Borrower will end on December 28, 2003. 
  

 10 

 “Fujitsu” has the meaning specified in the recitals of this Agreement. 
  
 “Fujitsu Guaranty” means the Guaranty executed by Fujitsu to
guarantee the Obligations under this Agreement, in substantially the form of Exhibit A-2. 
  
 “GAAP” means generally accepted accounting principles set forth from time to time in the opinions and pronouncements of the Accounting
Principles Board and the American Institute of Certified Public Accountants and statements and pronouncements of the Financial Accounting Standards Board (or agencies with similar functions of comparable stature and authority within the U.S.
accounting profession), which are applicable to the circumstances as of the Closing Date. 
  
 “Governmental Authority” means any nation or government, any state or other political subdivision thereof, any central bank (or similar monetary or regulatory authority) thereof, any entity exercising
executive, legislative, judicial, regulatory or administrative functions of or pertaining to government, and any corporation or other entity owned or controlled, through stock or capital ownership or otherwise, by any of the foregoing. 

 
 “Grandfathering Rules” means that any actions taken by
the Borrower or any of its Subsidiaries and any events or circumstances occurring or arising during any time that is not an Enhanced Covenant Period, which actions, events or circumstances were permitted under the terms of this Agreement at the time
taken, occurring or arising, shall not constitute a breach of the applicable covenant referencing such Enhanced Covenant Period during any subsequent Enhanced Covenant Period notwithstanding that such actions, events or circumstances would not have
been permitted under such covenant, or would have constituted such a breach, had such actions, events or circumstances been taken, occurred or arisen during such Enhanced Covenant Period. 
  
 “Guaranty” means, with respect to any Person, all obligations of such Person which in any manner directly
or indirectly guarantee or assure, or in effect guarantee or assure, the payment or performance of any indebtedness, dividend or other obligations of any other Person (the “guaranteed obligations”), or assure or in effect assure the holder
of the guaranteed obligations against loss in respect thereof, including any such obligations incurred through an agreement, contingent or otherwise: (a) to purchase the guaranteed obligations or any property constituting security therefor; (b) to
advance or supply funds for the purchase or payment of the guaranteed obligations or to maintain a working capital or other balance sheet condition; or (c) to lease property or to purchase any debt or equity securities or other property or services.

  
 “Intercreditor Agreement” means the Amended
and Restated Intercreditor and Subordination Agreement of even date herewith between the Agent and the administrative agent for the lenders party to the Senior Credit Facility. 
  
 “Interest Rate” means each or any of the interest rates, including the Default Rate, set forth in
Section 3.1. 
  

 11 

 “Inventory” means all of the Borrower’s now owned and hereafter acquired inventory,
goods and merchandise, wherever located, to be furnished under any contract of service or held for sale or lease, all returned goods, raw materials, other materials and supplies of any kind, nature or description which are or might be consumed in
the Borrower’s business or used in connection with the packing, shipping, advertising, selling or finishing of such goods, merchandise and such other personal property, and all documents of title or other documents representing them.

  
 “Investments” has the meaning specified in
the definition of Restricted Investments. 
  
 “IRS” means the Internal Revenue Service and any Governmental Authority succeeding to any of its principal functions under the Code. 
  

“Latest Projections” means: (a) on the Closing Date and thereafter until the Agent receives new projections pursuant to Section
7.2(f), the projections for the period from July 1, 2003 through June 30, 2007 contained in pages 9-13 of the “AMD Board of Directors Newco Update” dated May 21, 2003, delivered to the Agent prior to the Closing Date; and (b)
thereafter, the projections most recently received by the Agent pursuant to Section 7.2(f). 
  
 “Lender” and “Lenders” have the meanings specified in the introductory paragraph hereof. 
  
 “LIBOR Business Day” means a Business Day on which dealings
in Dollar deposits are carried on in the London interbank market. 
  
 “LIBOR Period” means a period of 90 days. 
  
 “LIBOR Rate” means for each LIBOR Period, a rate of interest determined by the Agent equal to: 
  
 (a) the offered rate for deposits in Dollars for the applicable LIBOR Period that appears on Telerate Page 3750 as of 11:00 a.m.(London
time) on the second full LIBOR Business Day next preceding the first day of such LIBOR Period (unless such date is not a Business Day, in which event the next succeeding Business Day will be used); divided by 
  
 (b) a number equal to 1.0 minus the aggregate (but without
duplication)of the rates (expressed as a decimal fraction) of reserve requirements in effect on the day that is 2 LIBOR Business Days prior to the beginning of such LIBOR Period (including basic, supplemental, marginal and emergency reserves under
any regulations of the Federal Reserve Board or other Governmental Authority having jurisdiction with respect thereto, as now and from time to time in effect) for Eurocurrency funding (currently referred to as “Eurocurrency Liabilities” in
Regulation D of the Federal Reserve Board) that are required to be maintained by a member bank of the Federal Reserve System. 
  
 “LIBOR Rate Loan” means a Loan during any period in which it bears interest based on the LIBOR Rate. 
  

 12 

 “Lien” means: (a) any interest in property securing an obligation owed to, or a claim
by, a Person other than the owner of the property, whether such interest is based on the common law, statute, or contract, and including a security interest, charge, claim, or lien arising from a mortgage, deed of trust, encumbrance, pledge,
hypothecation, assignment, deposit arrangement, agreement, security agreement, conditional sale or trust receipt or a lease, consignment or bailment for security purposes; (b) to the extent not included under clause (a), any reservation, exception,
encroachment, easement, right-of-way, covenant, condition, restriction, lease or other title exception or encumbrance affecting property; and (c) any contingent or other agreement to provide any of the foregoing. 
  
 “Loan Documents” means this Agreement, the Parent
Guaranties, the AMD Security Agreement, the Collateral Documents, any other agreements, instruments, and documents heretofore, now or hereafter evidencing, securing, guaranteeing or otherwise relating to the Obligations, the Collateral, or any other
aspect of the transactions contemplated by this Agreement. 
  
 “Loans” means the Existing Loans assigned to and assumed by the Borrower pursuant to the Assignment Agreement. 
  
 “Machinery & Equipment” means all of the existing and after acquired personal tangible assets, other than Inventory, now or hereafter
located at the Fab 25 Facility. 
  
 “Machinery &
Equipment Appraisal” has the meaning specified in Section 10.01(i)(vii). 
  
 “Majority Lenders” means at any time Lenders whose Pro Rata Shares aggregate 66 2/3% or more as such percentage is determined under the definition of Pro Rata Share set forth herein. 
  
 “Margin Stock” means “margin stock” as such term is defined in Regulation T, U or X of the Federal Reserve Board. 

 
 “Material Adverse Effect” means (a) a material adverse
change in, or a material adverse effect upon, the operations, business, properties, or condition (financial or otherwise) of the Borrower and its Subsidiaries taken as a whole or the Collateral taken as a whole; (b) a material impairment of the
ability of the Borrower to perform under any Loan Document and to avoid any Event of Default; or (c) a material adverse effect upon (i) the legality, validity, binding effect or enforceability against the Borrower of any Loan Document, or (ii) the
perfection or priority of any portion of the Agent’s Liens. 
  
 “Maximum Rate” has the meaning specified in Section 3.3. 
  
 “Moody’s” means Moody’s Investors Service, Inc. and any successor thereto. 
  
 “Multi-employer Plan” means a “multi-employer plan” as defined in Section 4001(a)(3) of ERISA which is or was at any time
during the current year or the immediately preceding six (6) years contributed to by the Borrower or any ERISA Affiliate. 
  

 13 

 “Net Domestic Cash” means, at any time, Domestic Cash at such time minus
restricted cash (determined in accordance with GAAP) (or any refinancing, renewal or extension thereof permitted under Section 9.12) at such time. 
  
 “Net Proceeds” means, as to any Disposition by a Person, proceeds in cash, checks or other cash equivalent financial instruments as and
when received by such Person, net of: (a) the direct costs relating to such Disposition excluding amounts payable to such Person or any Affiliate of such Person, and (b) sale, use or other transaction taxes, and income taxes, paid or reasonably
expected to be payable by such Person as a direct result thereof. “Net Proceeds” shall also include proceeds paid on account of any Event of Loss, net of (i) all of the costs and expenses reasonably incurred in connection with the
collection of such proceeds, award or other payments, and (ii) any amounts retained by or paid to parties having superior rights to such proceeds, awards or other payments. 
  
 “Note” means, each Amended and Restated Promissory Note executed by the Borrower pursuant to Section
2.1(c). 
  
 “Obligations” means all present and
future loans, advances, liabilities, obligations, covenants, duties, and debts owing by the Borrower to the Agent and/or any Lender, arising under or pursuant to this Agreement or any of the other Loan Documents, whether or not evidenced by any
note, or other instrument or document, whether arising from any extension of credit, issuance of any letter of credit, acceptance, loan, guaranty, indemnification or otherwise, whether direct or indirect (including those acquired by assignment from
others, and any participation by the Agent and/or any Lender in the Borrower’s debts owing to others), absolute or contingent, due or to become due, primary or secondary, as principal or guarantor, and including all principal, interest,
charges, expenses, fees, attorneys’ fees, filing fees and any other sums chargeable to the Borrower hereunder or under any of the other Loan Documents. 
  
 “Operating Agreement” means the Amended and Restated Limited Liability Company Operating Agreement of the Borrower dated as of June 30,
2003. 
  
 “Other Taxes” means any present or
future stamp or documentary taxes or any other excise or property taxes, charges or similar levies which arise from any payment made hereunder or from the execution, delivery or registration of, or otherwise with respect to, this Agreement or any
other Loan Documents. 
  
 “Parent Guaranties”
means, collectively, the AMD Guaranty and the Fujitsu Guaranty. 
  
 “Parents” means, collectively, AMD and Fujitsu. 
  
 “Participant” means any Person who shall have been granted the right by any Lender to participate in the financing provided by such Lender under this Agreement, and who shall have entered into a
participation agreement in form and substance satisfactory to such Lender. 
  

 14 

 “PBGC” means the Pension Benefit Guaranty Corporation or any Governmental Authority
succeeding to the functions thereof. 
  
 “Pension
Plan” means a pension plan (as defined in Section 3(2) of ERISA) subject to Title IV of ERISA which the Borrower sponsors, maintains, or to which it makes, is making, or is obligated to make contributions. 
  
 “Permitted Affiliate Investments” means Investments by the
Borrower or any Subsidiary in the Borrower or any Subsidiary, provided that the amount of all such Permitted Affiliate Investments made by the Borrower or any U.S. Subsidiary during any Enhanced Covenant Period (but subject to the
Grandfathering Rules) may not exceed $25,000,000 in the aggregate. 
  
 “Permitted Liens” means,: 
  
 (a)
Liens for taxes not delinquent or statutory Liens for taxes provided that the payment of such taxes which are due and payable is being contested in good faith and by appropriate proceedings diligently pursued and as to which adequate financial
reserves have been established on Borrower’s books and records and a stay of enforcement of any such Lien is in effect; 
  
 (b) the Agent’s Liens; 
  
 (c) Liens consisting of deposits made in the ordinary course of business in connection with, or to secure payment of, obligations under worker’s
compensation, unemployment insurance, social security and other similar laws, or to secure the performance of bids, tenders or contracts (other than for the repayment of borrowed money) or to secure indemnity, performance or other similar bonds for
the performance of bids, tenders or contracts (other than for the repayment of borrowed money) or to secure statutory obligations (other than liens arising under ERISA or Environmental Liens) or surety or appeal bonds, or to secure indemnity,
performance or other similar bonds; 
  
 (d) Liens securing the
claims or demands of materialmen, mechanics, carriers, warehousemen, landlords and other like Persons, provided that if any such Lien arises from the nonpayment of such claims or demand when due, such claims or demands shall not result in a
Material Adverse Effect; 
  
 (e) Liens constituting encumbrances
in the nature of reservations, exceptions, encroachments, easements, rights of way, covenants running with the land, and other similar title exceptions or encumbrances affecting any Real Estate; provided that they do not in the aggregate
materially detract from the value of the Real Estate or materially interfere with its use in the ordinary conduct of the Borrower’s business; 
  
 (f) Liens arising from judgments and attachments in connection with court proceedings provided that the attachment or enforcement of such Liens would not
result in an Event of Default hereunder and such Liens are being contested in good faith by appropriate proceedings, adequate reserves have been set aside and no material property is subject to a material risk of loss or forfeiture and the claims in
respect of such Liens are fully covered by insurance (subject to ordinary and customary deductibles); 
  

 15 

 (g) Liens existing as of the Closing Date and set forth on Schedule 9.17. 
  
 (h) Liens arising solely by virtue of any statutory or common law provisions
relating to banker’s liens, rights of setoff or similar rights and remedies as to deposit accounts or other funds maintained with a creditor depository institution, provided that (i) such deposit account is not a dedicated cash collateral
account and is not subject to restrictions against access by the Borrower or any Restricted Subsidiary in excess of those set forth by regulations promulgated by the FRB, and (ii) such deposit account is not intended by the Borrower or any
Restricted Subsidiary to provide collateral to the depository institution; 
  
 (i) Liens on property which is not Collateral in respect of conditional sales contracts or retention of title agreements in connection with the acquisition of property permitted under this Agreement, provided
that any such Lien shall attach only to the property so acquired; 
  
 (j) Liens securing Debt permitted under clause (vii) of Section 9.12; provided that (i) such Liens do not at any time encumber any property other than the property financed by such Debt, (ii) the Indebtedness secured thereby does not
exceed the cost or fair market value (determined at the time of incurrence of such Indebtedness), whichever is lower, of the property being acquired and (iii) the property financed by such Debt is not being affixed to the Fab 25 Facility in such a
manner that the removal thereof would materially adversely affect the Fab 25 Facility and its operations; 
  
 (k) the renewal, extension or replacement of any Lien that was, at the time such Lien was incurred or assumed, permitted hereunder, provided that
(i) any such renewal, extension or replacement Lien encumbers the same property as the Lien being renewed, extended or replaced and shall not extend to any additional property not encumbered by the prior Lien and (ii) the Debt secured by such
renewal, extension or replacement Lien is then permitted hereunder; 
  
 (l) Liens permitted under the Grandfathering Rules under Section 9.17(b); and 
  
 (m) Liens securing Debt described in Section 9.12(ix) (but only to the extent of Liens on the property subject to the lease financing described therein), and Liens securing Debt described in Section 9.12(x) (but only
to the extent of Liens on property other than the Collateral). 
  
 “Person” means any individual, sole proprietorship, partnership, limited liability company, joint venture, trust, unincorporated organization, association, corporation, Governmental Authority, or any other entity.

  

 16 

 “Plan” means an employee benefit plan (as defined in Section 3(3) of ERISA) which the
Borrower sponsors or maintains or to which the Borrower makes, is making, or is obligated to make contributions and includes any Pension Plan. 
  
 “Premises” means the land and all buildings, improvements, and fixtures thereon and all tenements, hereditaments, and appurtenances
belonging or in any way appertaining thereto, which constitutes all of the real property in which the Borrower has any interest. 
  
 “Pro Rata Share” means, with respect to a Lender, a fraction (expressed as a percentage), the numerator of which is the amount of such
Lender’s Commitment and the denominator of which is the sum of the amounts of all of the Lenders’ Commitments, or if no Commitments are outstanding, a fraction (expressed as a percentage), the numerator of which is the amount of
Obligations owed to such Lender and the denominator of which is the aggregate amount of the Obligations owed to the Lenders. 
  
 “Rate Protection Arrangements” means (a) any and all rate swap transactions, basis swaps, forward rate transactions, commodity swaps,
commodity options, forward commodity contracts, equity or equity index swaps or options, bond or bond price or bond index swaps or options or forward bond or forward bond price or forward bond index transactions, interest rate options, forward
foreign exchange transactions, cap transactions, floor transactions, collar transactions, currency swap transactions, cross-currency rate swap transactions, currency options, or any other similar transactions or any combination of any of the
foregoing (including any options to enter into any of the foregoing), whether or not any such transaction is governed by or subject to any master agreement, or (b) any and all transactions of any kind, and the related confirmations, which are
subject to the terms and conditions of, or governed by, any form of master agreement published by the International Swaps and Derivatives Association, Inc., or any other master agreement (any such master agreement, together with any related
schedules, as amended, restated, extended, supplemented or otherwise modified in writing from time to time, a “Master Agreement), including but not limited to any such obligations or liabilities under any Master Agreement. 
  
 “Real Estate” means all of the present and future interests
of the Borrower, as owner, lessee, or otherwise, in the Premises, including any interest arising from an option to purchase or lease the Premises or any portion thereof. 
  
 “Reciprocal Easement Agreement” means the Reciprocal Easement Agreement dated as of August 1, 1996, entered
into by AMD and AMD Texas Properties, LLC, as amended, and assigned to the Borrower by AMD pursuant to the Assignment Agreement. 
  
 “Release” means a release, spill, emission, leaking, pumping, injection, deposit, disposal, discharge, dispersal, leaching or migration
of a Contaminant into the indoor or outdoor environment or into or out of any Real Estate or other property, including the movement of Contaminants through or in the air, soil, surface water, groundwater or Real Estate or other property. 

 

 17 

 “Reportable Event” means, any of the events set forth in Section 4043(b) of ERISA or the
regulations thereunder, other than any such event for which the 30-day notice requirement under ERISA has been waived in regulations issued by the PBGC. 
  
 “Requirement of Law” means, as to any Person, any law (statutory or common), treaty, rule or regulation or determination of an arbitrator
or of a Governmental Authority, in each case applicable to or binding upon the Person or any of its property or to which the Person or any of its property is subject. 
  
 “Responsible Officer” means the chief executive officer or chief financial officer of the Borrower, or any
other officer having substantially the same authority and responsibility; or, with respect to compliance with financial covenants, the chief financial officer or the treasurer of the Borrower, or any other officer having substantially the same
authority and responsibility. 
  
 “Restricted
Investment” means, as to any Person, any acquisition of property by such Person in exchange for cash or other property, whether in the form of an acquisition of stock, debt, or other indebtedness or obligation, or the purchase or
acquisition of any other property, or a loan, advance, capital contribution, or subscription (collectively, “Investments”), except the following: (a) acquisitions of Equipment in the ordinary course of business to be used in the business
of the Borrower or its Subsidiaries; (b) acquisitions of Inventory and intellectual property in the ordinary course of business; (c) acquisitions of current assets acquired in the ordinary course of business of the Borrower or its Subsidiaries; (d)
acquisitions of direct obligations of the United States of America, or any agency thereof, or obligations guaranteed by the United States of America, provided that such obligations mature within one year from the date of acquisition thereof;
(e) acquisitions of certificates of deposit maturing within one year from the date of acquisition, bankers’ acceptances, Eurodollar bank deposits, or overnight bank deposits, in each case issued by, created by, or with a bank or trust company
organized under the laws of the United States or any state thereof having capital and surplus aggregating at least $100,000,000; (f) acquisitions of commercial paper given a rating of “A2” or better by Standard & Poor’s
Corporation or “P2” or better by Moody’s Investors Service, Inc. and maturing not more than 90 days from the date of creation thereof; (g) Rate Protection Arrangements; (h) Permitted Affiliate Investments; (i) any Investment made as
the result of the receipt of non-cash consideration from an asset sale permitted under Section 9.8; and (j) loans or advances to employees of the Borrower or any Restricted Subsidiary not to exceed $2,000,000 at any time outstanding,
provided that such Investments shall not exceed (i) $50,000,000 in Fiscal Year 2003, (ii) $275,000,000 in Fiscal Year 2004 and (iii) $125,000,000 in Fiscal Year 2005, and provided further that to the extent any of the Investment
baskets set forth in the immediately preceding clauses (i), (ii) and (iii) are not fully utilized, the unused amount may be carried over to subsequent Fiscal Years until utilized. 
  
 “Restricted Subsidiary” means any Subsidiary of the Borrower. 
  
 “S&P” means Standard & Poor’s Ratings Services,
a division of The McGraw-Hill Companies, Inc. and any successor thereto. 
  

 18 

 “Senior Credit Facility” means the Amended and Restated Loan and Security Agreement
dated as of July 7, 2003, as amended, by and among AMD, AMDISS and the financial institutions party thereto as “Lenders” and Bank of America, N.A., as administrative agent (or any refinancing, renewal or extension thereof). 
  
 “Solvent” means when used with respect to any Person that at
the time of determination: 
  
 (i) the assets of
such Person, at a fair valuation, are in excess of the total amount of its debts (including contingent liabilities); and 
  
 (ii) the present fair saleable value of its assets is greater than its probable liability on its existing debts as such debts become
absolute and matured; and 
  
 (iii) it is then
able and expects to be able to pay its debts (including contingent debts and other commitments) as they mature; and 
  
 (iv) it has capital sufficient to carry on its business as conducted and as proposed to be conducted. 
  
 For purposes of determining whether a Person is Solvent, the amount of any contingent
liability shall be computed as the amount that, in light of all the facts and circumstances existing at such time, represents the amount that can reasonably be expected to become an actual or matured liability. 
  
 “Stated Termination Date” means June 30, 2006. 

 
 “Subordinated Parent Debt” mean unsecured loans provided
from time to time from either of the Parents or its Affiliates to the Borrower, which loans shall be subordinated to the Obligations pursuant to an instrument in writing satisfactory in form and substance to the Agent and the Majority Lenders and
containing subordination provisions substantially in the form set forth in Exhibit C. 
  
 “Subsidiary” of a Person means any corporation, association, partnership, joint venture or other business entity of which more than fifty percent (50%) of the voting stock or other equity interests
(in the case of Persons other than corporations), is owned or controlled directly or indirectly by the Person, or one or more of the Subsidiaries of the Person, or a combination thereof. Unless the context otherwise clearly requires, references
herein to a “Subsidiary” refer to a Subsidiary of the Borrower. 
  

 19 

 “Swap Termination Value” means, in respect of any one or more Rate Protection
Arrangements, after taking into account the effect of any legally enforceable netting agreement relating to such Rate Protection Arrangement, (a) for any date on or after the date such Rate Protection Arrangements have been closed out and
termination value(s) determined in accordance therewith, such termination value(s), and (b) for any date prior to the date referenced in clause (a) the amount(s) determined as the mark-to-market value(s) for such Rate Protection Arrangement, as
determined by the Borrower based upon one or more mid-market or other readily available quotations provided by any recognized dealer in such Rate Protection Arrangements (which may include any of the Lenders). 
  
 “Target Cash Level” means, for any period, the applicable
cash level set forth below for such period: 
  

	 Period

	 	 Amount

	 Third quarter of fiscal year 2003
	 	$130,000,000
		
	 Fourth quarter of fiscal year 2003
	 	$130,000,000
		
	 First quarter of fiscal year 2004
	 	$130,000,000
		
	Second quarter of fiscal year 2004 through Full fiscal year 2005	 	$120,000,000
		
	 Full fiscal year 2006
	 	$100,000,000

  
 “Taxes” means any and all present or future taxes, levies, imposts, deductions, charges or withholdings, and all liabilities with respect thereto, excluding, in the case of each Lender and the Agent, such taxes (including
income taxes or franchise taxes) as are imposed on or measured by each Lender’s net income by the jurisdiction (or any political subdivision thereof) under the laws of which such Lender or the Agent, as the case may be, is organized or
maintains a lending office. 
  
 “UCC” means the
Uniform Commercial Code (or any successor statute) of the State of New York or of any other state the laws of which are required by Division 9 thereof to be applied in connection with the issue of perfection of security interests. 
  
 “Unfunded Pension Liability” means the excess of a
Plan’s benefit liabilities under Section 4001(a)(16) of ERISA, over the current value of that Plan’s assets, determined in accordance with the assumptions used for funding the Pension Plan pursuant to Section 412 of the Code for the
applicable plan year. 
  
 “U.S. Subsidiary” means
any Subsidiary of the Borrower that is organized under the laws of the United States or any State thereof or that maintains its chief executive office in the United States. 
  

 20 

 “Wholly-Owned Subsidiary” means any corporation in which (other than directors’
qualifying shares required by law) 100% of the capital stock of each class having ordinary voting power, and 100% of the capital stock of every other class, in each case, at the time as of which any determination is being made, is owned,
beneficially and of record, by the Borrower, or by one or more of the other Wholly-Owned Subsidiaries, or both. 
  
 1.2 Accounting Terms; UCC Terms. (a) Any accounting term used in this Agreement shall have, unless otherwise specifically provided herein, the
meaning customarily given in accordance with GAAP, and all financial computations hereunder shall be computed, unless otherwise specifically provided herein, in accordance with GAAP as consistently applied and using the same method for inventory
valuation as used in the preparation of the Financial Statements. (b) Subject to the preceding subsection (a), any term used herein which is defined in the UCC and which is not otherwise defined in this Agreement shall have the same meaning when
used herein as is given to such term in the UCC. (c) If GAAP shall have been modified after the Closing Date and the application of such modified GAAP shall have a material effect on any financial computations hereunder (including the computations
required for the purpose of determining compliance with the financial covenants set forth in Article 9), then such computations shall be made and the financial statements, certificates and reports due hereunder shall be prepared, and all
accounting terms not otherwise defined herein shall be construed, in accordance with GAAP as in effect prior to such modification, unless and until the Majority Banks and the Borrower shall have agreed upon the terms of the application of such
modified GAAP. 
  
 1.3 Interpretive Provisions. 

 
 (a) The meanings of defined terms are equally applicable to the singular
and plural forms of the defined terms. 
  
 (b) The words
“hereof,” “herein,” “hereunder” and similar words refer to this Agreement as a whole and not to any particular provision of this Agreement; and Subsection, Section, Schedule and Exhibit references are to this Agreement
unless otherwise specified. 
  
 (c) The term “documents”
includes any and all instruments, documents, agreements, certificates, indentures, notices and other writings, however evidenced. 
  
 (i) The term “including” is not limiting and means “including without limitation.” 
  
 (ii) In the computation of periods of time from a specified
date to a later specified date, the word “from” means “from and including,” the words “to” and “until” each mean “to but excluding” and the word “through” means “to and
including.” 
  
 (d) Unless otherwise expressly provided
herein, (i) references to agreements (including this Agreement) and other contractual instruments shall be deemed to include all subsequent amendments and other modifications thereto, but only to the extent such amendments and other modifications
are not prohibited by the terms of any Loan Document, and (ii) references to any statute or regulation are to be construed as including all statutory and regulatory provisions consolidating, amending, replacing, supplementing or interpreting the
statute or regulation. 
  

 21 

 (e) The captions and headings of this Agreement are for convenience of reference only and shall not
affect the interpretation of this Agreement. 
  
 (f) This
Agreement and other Loan Documents may use several different limitations, tests or measurements to regulate the same or similar matters. All such limitations, tests and measurements are cumulative and shall each be performed in accordance with their
terms. 
  
 (g) This Agreement and the other Loan Documents are the
result of negotiations among and have been reviewed by counsel to the Agent, the Borrower and the other parties, and are the products of all parties. Accordingly, they shall not be construed against the Lenders or the Agent merely because of the
Agent’s or Lenders’ involvement in their preparation. 
  
 ARTICLE 2 
  
 TERM LOANS 
  
 2.1 Term Loans. 
  
 (a) Assignment of Loans. The obligations under the promissory notes
evidencing the Existing Loans outstanding under the Existing Loan Agreement have been assigned from AMD and AMDISS to, and assumed by, the Borrower pursuant to the Assignment Agreement. The outstanding principal amount of such notes as of the
Closing Date is set forth opposite each Lender’s name on the signature pages of this Agreement. 
  
 (b) Notation. The Agent shall record on its books the principal amount of the Existing Loans owing to each Lender. In addition, each Lender is
authorized, at such Lender’s option, to note the date and amount of each payment or prepayment of principal of such Lender’s Loans in its books and records, including computer records, such books and records constituting presumptive
evidence, absent manifest error, of the accuracy of the information contained therein. 
  
 (c) Amended and Restated Notes. As additional evidence of the indebtedness of the Borrower to each Lender resulting from the Loans made by such Lender and assumed by the Borrower, the Borrower shall execute and
deliver for account of each Lender an Amended and Restated Promissory Note, dated as of July 11, 2003, in the amount set forth opposite each Lender’s name on the signature pages of this Agreement. 
  

 22 

 ARTICLE 3 
  
 INTEREST AND FEES 
  
 3.1 Interest. 
  
 (a) Interest Rates. All outstanding Obligations shall bear interest on the unpaid principal amount thereof (including, to the extent permitted by
law, on interest thereon not paid when due) from the date made until paid in full in cash at a rate determined by reference to the Base Rate or the LIBOR Rate and Sections 3.1(a)(i) or (ii), as applicable, but not to exceed the Maximum
Rate described in Section 3.3. Except as otherwise provided herein, the outstanding Obligations shall bear interest as follows: 
  
 (i) For all LIBOR Rate Loans and other Obligations (other than Base Rate Loans) at a fluctuating per annum rate equal to the LIBOR Rate
plus the Applicable Margin; and 
  
 (ii) For all
Base Rate Loans at a fluctuating per annum rate equal to the Base Rate plus the Applicable Margin. 
  
 Each change in the Base Rate shall be reflected in the interest rate described in clause (ii) above as of the effective date of such change. All interest charges shall be computed on the basis of a year of 360 days
and actual days elapsed (which results in more interest being paid than if computed on the basis of a 365-day year). Interest accrued on all Loans will be payable in arrears on the last Business Day of each calendar quarter hereafter. 
  
 (b) Default Rate. If any Default or Event of Default occurs and is
continuing and the Majority Lenders in their discretion so elect, then, while any such Default or Event of Default is outstanding, all of the Obligations shall bear interest at the Default Rate applicable thereto and such interest shall be payable
upon demand from time to time. 
  
 3.2 [Reserved]

  
 3.3 Maximum Interest Rate. In no event shall any
interest rate provided for hereunder exceed the maximum rate legally chargeable by any Lender under applicable law for such Lender with respect to loans of the type provided for hereunder (the “Maximum Rate”). If, in any month, any
interest rate, absent such limitation, would have exceeded the Maximum Rate, then the interest rate for that month shall be the Maximum Rate, and, if in future months, that interest rate would otherwise be less than the Maximum Rate, then that
interest rate shall remain at the Maximum Rate until such time as the amount of interest paid hereunder equals the amount of interest which would have been paid if the same had not been limited by the Maximum Rate. In the event that, upon payment in
full of the Obligations, the total amount of interest paid or accrued under the terms of this Agreement is less than the total amount of interest which would, but for this Section 3.3, have been paid or accrued if the interest rates otherwise
set forth in this Agreement had at all times been in effect, then the Borrower shall, to the extent permitted by applicable law, pay the Agent, for the account of the Lenders, an amount equal to the excess of (a) the lesser of (i) the amount of
interest which would have been charged if the Maximum Rate 
  

 23 

 
had, at all times, been in effect or (ii) the amount of interest which would have accrued had the interest rates otherwise set forth in this Agreement, at
all times, been in effect over (b) the amount of interest actually paid or accrued under this Agreement. In the event that a court of competent jurisdiction determines that the Agent and/or any Lender has received interest and other charges
hereunder in excess of the Maximum Rate, such excess shall be deemed received on account of, and shall automatically be applied to reduce, the Obligations other than interest, in the inverse order of maturity, and if there are no Obligations
outstanding, the Agent and/or such Lender shall refund to the Borrower such excess. 
  
 3.4 Fees. The Borrower agrees to pay to the Agent for the account of the Lenders a non-refundable amendment fee equal to $100,000 on the Closing Date, which fee shall be fully earned by the Lenders when paid on
the Closing Date. 
  
 ARTICLE 4 
  
 PAYMENTS AND PREPAYMENTS 
  
 4.1 Loans. The Borrower shall repay to the Lenders the aggregate
principal amount of the Loans in consecutive quarterly installments, commencing on September 30, 2003, with subsequent installments payable on the last Business Day of each calendar quarter thereafter to and including the Stated Termination Date, as
more particularly set forth on Schedule A hereto; provided, however, that the last such installment shall be in the amount necessary to repay in full the aggregate unpaid principal amount of the Loans. 
  
 4.2 Termination of Facility. 
  
 (a) Effective from and after the Closing Date, the Borrower may terminate
this Agreement upon at least fifteen (15) days’ irrevocable written notice to the Agent and the Lenders, upon (i) the payment in full of all outstanding Loans, together with accrued interest thereon, (ii) the payment of the prepayment fee set
forth in clause (c) below, (iii) the payment in full in cash of all other Obligations together with accrued interest thereon, and (iv) with respect to any LIBOR Rate Loans prepaid in connection with such termination prior to the expiration date of
the LIBOR Period applicable thereto, the payment of the amounts described in Section 5.4. 
  
 (b) The Borrower may prepay the outstanding principal amount of the Loans in part upon at least five (5) Business Days’ irrevocable written notice to
the Agent and the Lenders specifying the principal amount of such prepayment and the Business Day on which such prepayment shall occur, upon (i) the payment of the prepayment fee set forth in clause (c) below, (ii) the payment of all accrued but
unpaid interest in respect of the principal amount of the Loans prepaid and (iii) with respect to any LIBOR Rate Loans prepaid prior to the expiration date of the LIBOR Period applicable thereto, the payment of the amounts described in Section
5.4. 
  

 24 

 (c) If this Agreement is terminated at any time prior to the Stated Termination Date, whether pursuant to
this Section or pursuant to Section 11.2, or if the Borrower prepays for any reason (whether voluntarily, pursuant to Section 4.8 or otherwise) any of the outstanding principal amount of the Loans prior to the scheduled date on which such
principal amount falls due, the Borrower shall pay to the Agent, for the account of the Lenders, a prepayment fee determined in accordance with the following table: 
  

	 Period during which
 early termination
 or prepayment occurs

	  	 Prepayment
 Fee

	On or prior to September 27, 2003	  	3.0% of the principal amount of the Loans prepaid (or required to be prepaid)
		
	After September 27, 2003 but on or prior to September 27, 2004	  	2.0% of the principal amount of the Loans prepaid (or required to be prepaid)
		
	After September 27, 2004 but on or prior to September 27, 2005	  	1.0% of the principal amount of the Loans prepaid (or required to be prepaid)

  
 (d) All partial
prepayments of the Loans shall be applied to the principal installments then remaining in inverse order of maturity. 
  
 4.3 Payments by the Borrower. 
  
 (a) All payments to be made by the Borrower shall be made without set-off, recoupment or counterclaim. Except as otherwise expressly provided herein, all
payments by the Borrower shall be made to the Agent for the account of the Lenders at the Agent’s address set forth in Section 15.8, and shall be made in Dollars and in immediately available funds, no later than 1:00 p.m. (New York, New
York time) on the date specified herein. Any payment received by the Agent later than 1:00 p.m. (New York, New York time) shall be deemed to have been received on the following Business Day and any applicable interest or fee shall continue to
accrue. 
  
 (b) Whenever any payment is due on a day other than a
Business Day, such payment shall be made on the following Business Day, and such extension of time shall in such case be included in the computation of interest or fees, as the case may be. 
  
 (c) Unless the Agent receives notice from the Borrower prior to the date on
which any payment is due to the Lenders that the Borrower will not make such payment in full as and when required, the Agent may assume that the Borrower has made such payment in full to the Agent on such date in immediately available funds and the
Agent may (but shall not be so required), in reliance upon such assumption, distribute to each Lender on such due date an amount equal to the amount then due such Lender. If and to the extent the Borrower has not made such payment in full to the
Agent, each Lender shall repay to the Agent on demand such amount distributed to such Lender, together with interest thereon at the Federal Funds Rate for each day from the date such amount is distributed to such Lender until the date repaid.

  

 25 

 4.4 [Reserved] 
  
 4.5 Apportionment, Application and Reversal of Payments. Aggregate principal and interest payments shall be
apportioned ratably among the Lenders (according to the unpaid principal balance of the Loans to which such payments relate held by each Lender) and payments of the fees shall, as applicable, be apportioned ratably among the Lenders. All payments
shall be remitted to the Agent and all such payments not relating to principal or interest of specific Loans, or not constituting payment of specific fees, and all proceeds of Accounts or other Collateral received by the Agent, shall be applied,
ratably, subject to the provisions of this Agreement, first, to pay any fees, indemnities or expense reimbursements then due to the Agent from the Borrower; second, to pay any fees or expense reimbursements then due to the Lenders from
the Borrower; third, to pay interest due in respect of all Loans; fourth, to pay or prepay principal of the Loans; and fifth, to the payment of any other Obligations due to the Agent or any Lender by the Borrower.
Notwithstanding anything to the contrary contained in this Agreement, unless so directed by the Borrower, or unless an Event of Default is outstanding, neither the Agent nor any Lender shall apply any payments which it receives to any LIBOR Rate
Loan, except (a) on the expiration date of the LIBOR Period applicable to any such LIBOR Rate Loan, or (b) in the event, and only to the extent, that there are no outstanding Base Rate Loans. The Agent shall promptly distribute to each Lender,
pursuant to the applicable wire transfer instructions received from each Lender in writing, such funds as it may be entitled to receive. The Agent and the Lenders shall have the continuing and exclusive right to apply and reverse and reapply any and
all such proceeds and payments to any portion of the Obligations. 
  
 4.6 Indemnity for Returned Payments. If, after receipt of any payment of, or proceeds applied to the payment of, all or any part of the Obligations, the Agent or any Lender is for any reason compelled to surrender such payment or
proceeds to any Person, because such payment or application of proceeds is invalidated, declared fraudulent, set aside, determined to be void or voidable as a preference, impermissible setoff, or a diversion of trust funds, or for any other reason,
then the Obligations or part thereof intended to be satisfied shall be revived and continue and this Agreement shall continue in full force as if such payment or proceeds had not been received by the Agent or such Lender, and the Borrower shall be
liable to pay to the Agent, and hereby does indemnify the Agent and the Lenders and hold the Agent and the Lenders harmless for, the amount of such payment or proceeds surrendered. The provisions of this Section 4.6 shall be and remain
effective notwithstanding any contrary action which may have been taken by the Agent or any Lender in reliance upon such payment or application of proceeds, and any such contrary action so taken shall be without prejudice to the Agent’s and the
Lenders’ rights under this Agreement and shall be deemed to have been conditioned upon such payment or application of proceeds having become final and irrevocable. The provisions of this Section 4.6 shall survive the termination of this
Agreement. 
  

 26 

 4.7 Agent’s and Lenders’ Books and Records; Monthly Statements. The Borrower agrees that
the Agent’s and each Lender’s books and records showing the Obligations and the transactions pursuant to this Agreement and the other Loan Documents shall be admissible in any action or proceeding arising therefrom, and shall constitute
rebuttably presumptive proof thereof, irrespective of whether any Obligation is also evidenced by a promissory note or other instrument. The Agent will provide to the Borrower a quarterly statement of Loans, payments, and other transactions pursuant
to this Agreement. Such statement shall be deemed correct, accurate, and binding on the Borrower and an account stated (except for reversals and reapplications of payments made as provided in Section 4.5 and corrections of errors discovered
by the Agent), unless the Borrower notifies the Agent in writing to the contrary within thirty (30) days after such statement is rendered. In the event a timely written notice of objections is given by the Borrower, only the items to which exception
is expressly made will be considered to be disputed by the Borrower. 
  
 4.8 Mandatory Prepayments of Loans. If the Borrower or any Subsidiary shall at any time or from time to time make or agree to make a Disposition, or shall suffer an Event of Loss, then (i) the Borrower shall promptly notify the Agent
of such proposed Disposition or Event of Loss (including the amount of the estimated Net Proceeds to be received by the Borrower or such Subsidiary in respect thereof) and (ii) promptly upon, and in no event later than one Business Day after,
receipt by the Borrower or the Subsidiary of the Net Proceeds of such Disposition or Event of Loss, the Borrower shall prepay the Loans in an aggregate amount equal to the amount of such Net Proceeds; provided, however, that (a) the
foregoing provisions of this Section 4.8 shall not apply to (i) Net Proceeds of less than $2,000,000 received by the Borrower or any Subsidiary in connection with any Disposition or Event of Loss, subject to a maximum of $10,000,000 of Net Proceeds
received by the Borrower or any Subsidiary (on an aggregate basis) in any Fiscal Year, so long as such Net Proceeds are reinvested or otherwise applied in accordance with the following clauses (ii) and (iii), (ii) in the case of any Disposition of
Machinery & Equipment, Net Proceeds actually applied within 180 calendar days after such Disposition to replace such Machinery & Equipment with other Machinery & Equipment, which shall be located at the Fab 25 Facility to be used in the
ongoing operation of the Fab 25 Facility, or (iii) in the case of any Event of Loss, Net Proceeds actually applied within 180 days after the occurrence of such Event of Loss to repair or reconstruct the damaged property or property affected by the
condemnation or taking; and (b) accumulated proceeds in cash, checks or other cash equivalent financial instruments in respect of any Disposition or Event of Loss at any time in excess of the individual or aggregate limits described in the preceding
clause (a)(i) shall be delivered to the Agent to be held by the Agent as Collateral hereunder pending reinvestment of such proceeds or application of such proceeds to pay the Obligations, in each case, in accordance with this Agreement and the other
Loan Documents. In the event that the Net Proceeds described in clause (a) above are not reinvested or otherwise applied within such 180-day period, the Borrower shall be obligated to immediately apply such Net Proceeds to prepay the Loans in
accordance with this Section 4.8. 
  

 27 

 ARTICLE 5 
  
 TAXES, YIELD PROTECTION AND ILLEGALITY 
  
 5.1 Taxes. 
  
 (a) Any and all payments by the Borrower to each Lender or the Agent under this Agreement and any other Loan Document shall be made free and clear of, and
without deduction or withholding for any Taxes. In addition, the Borrower shall pay all Other Taxes. 
  
 (b) The Borrower agrees to indemnify and hold harmless each Lender and the Agent for the full amount of Taxes or Other Taxes (including any Taxes or Other
Taxes imposed by any jurisdiction on amounts payable under this Section) paid by the Lender or the Agent and any liability (including penalties, interest, additions to tax and expenses) arising therefrom or with respect thereto, whether or not such
Taxes or Other Taxes were correctly or legally asserted. Payment under this indemnification shall be made within 30 days after the date the Lender or the Agent makes written demand therefor. 
  
 (c) If the Borrower shall be required by law to deduct or withhold any Taxes
or Other Taxes from or in respect of any sum payable hereunder to any Lender or the Agent, then: 
  
 (i) the sum payable shall be increased as necessary so that after making all required deductions and withholdings (including deductions
and withholdings applicable to additional sums payable under this Section) such Lender or the Agent, as the case may be, receives an amount equal to the sum it would have received had no such deductions or withholdings been made; 
  
 (ii) the Borrower shall make such deductions and
withholdings; 
  
 (iii) the Borrower shall pay
the full amount deducted or withheld to the relevant taxing authority or other authority in accordance with applicable law; and 
  
 (iv) the Borrower shall also pay to each Lender or the Agent for the account of such Lender, at the time interest is paid, all additional
amounts which the respective Lender specifies as necessary to preserve the after-tax yield the Lender would have received if such Taxes or Other Taxes had not been imposed. 
  
 (d) Within 30 days after the date of any payment by the Borrower of Taxes or Other Taxes, the Borrower shall furnish the
Agent the original or a certified copy of a receipt evidencing payment thereof, or other evidence of payment satisfactory to the Agent. 
  

 28 

 (e) If the Borrower is required to pay additional amounts to any Lender or the Agent pursuant to
subsection (c) of this Section, then such Lender shall use reasonable efforts (consistent with legal and regulatory restrictions) to change the jurisdiction of its lending office so as to eliminate any such additional payment by the Borrower which
may thereafter accrue, if such change in the judgment of such Lender is not otherwise disadvantageous to such Lender. 
  
 5.2 Illegality. If any Lender determines that the introduction of any Requirement of Law, or any change in any Requirement of Law, or in the
interpretation or administration of any Requirement of Law, has made it unlawful, or that any central bank or other Governmental Authority has asserted that it is unlawful, for any Lender or its applicable lending office to make or maintain LIBOR
Rate Loans, then, on notice thereof by the Lender to the Borrower through the Agent, any obligation of the Lenders to make or maintain LIBOR Rate Loans shall be suspended until the Lender notifies the Agent and the Borrower that the circumstances
giving rise to such determination no longer exist. 
  
 5.3
Increased Costs and Reduction of Return. 
  
 (a) If any
Lender determines that, due to either (i) the introduction of or any change in the interpretation of any law or regulation or (ii) the compliance by that Lender with any guideline or request from any central bank or other Governmental Authority
(whether or not having the force of law), there shall be any increase in the cost to such Lender of agreeing to make or making, funding or maintaining any LIBOR Rate Loans, then the Borrower shall be liable for, and shall from time to time, upon
demand (with a copy of such demand to be sent to the Agent), pay to the Agent for the account of such Lender, additional amounts as are sufficient to compensate such Lender for such increased costs. 
  
 (b) If any Lender shall have determined that (i) the introduction of any
Capital Adequacy Regulation, (ii) any change in any Capital Adequacy Regulation, (iii) any change in the interpretation or administration of any Capital Adequacy Regulation by any central bank or other Governmental Authority charged with the
interpretation or administration thereof, or (iv) compliance by the Lender or any corporation or other entity controlling the Lender with any Capital Adequacy Regulation, affects or would affect the amount of capital required or expected to be
maintained by the Lender or any corporation or other entity controlling the Lender and (taking into consideration such Lender’s or such corporation’s or other entity’s policies with respect to capital adequacy and such Lender’s
desired return on capital) determines that the amount of such capital is increased as a consequence of its Commitment, loans, credits or obligations under this Agreement, then, upon demand of such Lender to the Borrower through the Agent, the
Borrower shall pay to the Lender, from time to time as specified by the Lender, additional amounts sufficient to compensate the Lender for such increase. 
  
 5.4 Funding Losses. The Borrower shall reimburse each Lender and hold each Lender harmless from any loss or expense which the Lender may sustain or
incur as a consequence of: 
  
 (a) the failure of the Borrower to
make on a timely basis any payment of principal of or interest on any LIBOR Rate Loan; 
  
 (b) the failure of the Borrower to prepay any LIBOR Rate Loan after the Borrower has given a notice thereof in accordance herewith; 
  

 29 

 (c) the prepayment or other payment (including after acceleration thereof, by operation of law or
otherwise) of a LIBOR Rate Loan, in whole or in part, on a day that is not the last day of the relevant LIBOR Period; or 
  
 (d) the automatic conversion of a LIBOR Rate Loan to a Base Rate Loan as provided in Section 5.6 on a day that is not the last day of the relevant LIBOR
Period, 
  
 including any such loss or expense arising from the liquidation or
reemployment of funds obtained by each such Lender to maintain its LIBOR Rate Loans or from fees payable to terminate the deposits from which such funds were obtained. 
  
 5.5 Inability to Determine Rates. If the Agent determines that for any reason adequate and reasonable means do not
exist for determining the LIBOR Rate for any LIBOR Period, or that the LIBOR Rate for any LIBOR Period does not adequately and fairly reflect the cost to the Lenders of funding or maintaining the Loans, the Agent will promptly so notify the Borrower
and each Lender. Thereafter, the obligation of the Lenders to make or maintain LIBOR Rate Loans hereunder shall be suspended until the Agent revokes such notice in writing. 
  
 5.6 Automatic Conversion of LIBOR Rate Loans to Base Rate Loans. If the obligation of the Lenders to make or maintain
LIBOR Rate Loans is at any time suspended pursuant to Section 5.2 or Section 5.5, then all LIBOR Rate Loans then outstanding shall immediately and automatically convert to Base Rate Loans without any further action by the parties. The Agent shall
promptly notify the Borrower and the Lenders of any such automatic conversion to Base Rate Loans. From and after the date on which any such automatic conversion to Base Rate Loans occurs, the outstanding Loans shall continue to accrue interest as
Base Rate Loans until such date as the Agent notifies the Borrower and the Lenders that the circumstances giving rise to such automatic conversion no longer exist, at which date the outstanding Loans shall automatically convert back to LIBOR Rate
Loans having a LIBOR Period commencing on such date. The Borrower shall pay to the Lenders the amounts described in Section 5.4 in connection with the automatic conversion of the LIBOR Rate Loans to Base Rate Loans on a day that is not the last day
of the relevant LIBOR Period. 
  
 5.7 Certificates of
Lenders. Any Lender claiming reimbursement or compensation under this Article 5 shall deliver to the Borrower (with a copy to the Agent) a certificate setting forth in reasonable detail the amount payable to the Lender hereunder and such
certificate shall be conclusive and binding on the Borrower in the absence of manifest error. 
  
 5.8 Survival. The agreements and obligations of the Borrower in this Article 5 shall survive the payment of all other Obligations. 
  

 30 

 ARTICLE 6 
  
 COLLATERAL 
  
 6.1 Perfection and Protection of Security Interest. 
  
 (a) The Borrower shall execute and deliver to the Agent concurrently with the execution of this Agreement, and the Borrower hereby authorizes the Agent to
file (with or without the Borrower’s signature), at any time and from time to time thereafter, all financing statements, continuation financing statements, termination statements, assignments, fixture filings, affidavits, reports, notices and
other documents and instruments, in form satisfactory to the Agent, and take all other action, as the Agent may reasonably request, to perfect and continue perfected, maintain the priority of or provide notice of the Agent’s security interest
in the Collateral and to accomplish the purposes of this Agreement. Without limiting the generality of the foregoing, the Borrower ratifies and authorizes the filing by the Agent of any financing statements filed prior to the date hereof.

  
 6.2 Title to, Liens on, and Sale and Use of Collateral.
The Borrower represents and warrants to the Agent and the Lenders and agrees with the Agent and the Lenders that: (a) all of the Collateral (except the Collateral under the AMD Security Agreement) is and will continue to be owned by the Borrower
free and clear of all Liens whatsoever, except for Permitted Liens, (b) the Agent’s Liens in the Collateral will not be subject to any prior Lien, except as contemplated by the Intercreditor Agreement; (c) the Borrower will use, store, and
maintain the Collateral (except the Collateral under the AMD Security Agreement) with all reasonable care and will use such Collateral for lawful purposes only; and (d) the Borrower will not, without the Agent’s prior written approval, sell, or
dispose of or permit the sale or disposition of any of the Collateral of the Borrower except for, subject to Sections 4.8 and 9.8, the sale or disposition of the Machinery and Equipment. The inclusion of proceeds in the Collateral shall not be
deemed to constitute the Agent’s or any Lender’s consent to any sale or other disposition of the Collateral except as expressly permitted herein. 
  
 6.3 Access and Examination; Confidentiality. The Agent, accompanied by any Lender which so elects, may, at Borrower’s expense, at all
reasonable times during regular business hours (and at any time when an Event of Default exists and is continuing) have access to, examine, audit, make extracts from or copies of and inspect any or all of the Borrower’s records, files, and
books of account and the Collateral of the Borrower, and discuss the Borrower’s affairs with the Borrower’s officers and management; provided that the Agent and the Lenders agree that, unless an Event of Default has occurred and is
continuing, the Agent shall not conduct any such examination, audit or other inspection more than two times in any calendar year. The parties further agree that the Agent may conduct additional examinations, audits or other inspections, at the
expense of the Agent and the Lenders, at all reasonable times during regular business hours, in addition to those contemplated above in this Section 6.3. The Borrower will deliver to the Agent any instrument necessary for the Agent to obtain
records from any service bureau maintaining records for the Borrower. The Agent may, and at the direction of the Majority Lenders shall, at any time when a Default or Event of Default exists, and at the Borrower’s expense, make copies of all of
the Borrower’s books and records relating to the Collateral of the Borrower and all relevant financial records, or require the Borrower to deliver such copies to the Agent. 
  

 31 

 ARTICLE 7 
  
 BOOKS AND RECORDS; FINANCIAL INFORMATION; NOTICES 
  
 7.1 Books and Records. The Borrower shall maintain, at all times, correct and complete books, records and accounts in which complete, correct and
timely entries are made of its transactions in accordance with GAAP applied consistently with the audited Financial Statements required to be delivered pursuant to Section 7.2(a). The Borrower shall, by means of appropriate entries, reflect
in such accounts and in all Financial Statements proper liabilities and reserves for all taxes and proper provision for depreciation and amortization of property and bad debts, all in accordance with GAAP. From and after the Closing Date, the
Borrower shall maintain at all times books and records pertaining to the Collateral of the Borrower in such detail, form and scope as the Agent or any Lender shall reasonably require. 
  
 7.2 Financial Information. The Borrower shall promptly furnish to each Lender, all such financial information as the
Agent or any Lender shall reasonably request, and notify its auditors and accountants that the Agent, on behalf of the Lenders, is authorized to obtain such information directly from them. Without limiting the foregoing, the Borrower will furnish to
the Agent, in sufficient copies for distribution by the Agent to each Lender, in such detail as the Agent or the Lenders shall request, the following: 
  
 (a) As soon as available, but in any event not later than ninety (90) days after the close of each Fiscal Year, consolidated audited and consolidating
audited balance sheets, and statements of income and expense, cash flow and of stockholders’ equity for the Borrower and its Subsidiaries for such Fiscal Year, and the accompanying notes thereto, setting forth in each case in comparative form
figures for the previous Fiscal Year, all in reasonable detail, fairly presenting the financial position and the results of operations of the Borrower and its consolidated Subsidiaries as at the date thereof and for the Fiscal Year then ended, and
prepared in accordance with GAAP. Such statements shall be examined in accordance with generally accepted auditing standards by and, in the case of such statements performed on a consolidated basis, accompanied by a report thereon unqualified as to
scope of independent certified public accountants selected by the Borrower and reasonably satisfactory to the Agent. The Borrower, simultaneously with retaining such independent public accountants to conduct such annual audit, shall send a letter to
such accountants, with a copy to the Agent and the Lenders, notifying such accountants that one of the primary purposes for retaining such accountants’ services and having audited financial statements prepared by them is for use by the Agent
and the Lenders. The Borrower hereby authorizes the Agent, upon reasonable prior notice to the Borrower, to communicate directly with its certified public accountants and, by this provision, authorizes those accountants to disclose to the Agent any
and all financial statements and other supporting financial documents and schedules relating to the Borrower or any of its Subsidiaries and to discuss directly with the Agent the finances and affairs of the Borrower or any of its Subsidiaries.

  

 32 

 (b) As soon as available, but in any event not later than fifteen (15) days after the end of each month,
consolidated and consolidating unaudited balance sheets of the Borrower and its consolidated Subsidiaries as at the end of such month, and consolidated and consolidating unaudited statements of income and expense for the Borrower and its
consolidated Subsidiaries for such month and for the period from the beginning of the Fiscal Year to the end of such month, each in such form and detail as currently provided to management of the Borrower as of the date of this Agreement.

  
 (c) As soon as available, but in any event not later than
forty-five (45) days after the close of each fiscal quarter other than the fourth quarter of a Fiscal Year, consolidated and consolidating unaudited balance sheets of the Borrower and its consolidated Subsidiaries as at the end of such quarter, and
consolidated and consolidating unaudited statements of income and expense and statement of cash flows for the Borrower and its Subsidiaries for such quarter and for the period from the beginning of the Fiscal Year to the end of such quarter, all in
reasonable detail, fairly presenting the financial position and results of operation of the Borrower and its Subsidiaries as at the date thereof and for such periods, prepared in accordance with GAAP consistent with the audited Financial Statements
required to be delivered pursuant to Section 7.2(a). The Borrower shall certify by a certificate signed by its chief financial officer that all such statements have been prepared in accordance with GAAP and present fairly, subject to normal
year-end adjustments, the Borrower’s financial position as at the dates thereof and its results of operations for the periods then ended. 
  
 (d) With each of the audited Financial Statements delivered pursuant to Section 7.2(a), a certificate of the independent certified public
accountants that examined such statement to the effect that they have reviewed and are familiar with this Agreement and that, in examining such Financial Statements, they did not become aware of any fact or condition which then constituted a Default
or Event of Default, except for those, if any, described in reasonable detail in such certificate. 
  
 (e) With each of the annual audited Financial Statements delivered pursuant to Section 7.2(a), and within forty-five (45) days after the end of
each fiscal quarter, a certificate of the chief financial officer of the Borrower (i) setting forth in reasonable detail the calculations of the covenants set forth in Sections 9.19, 9.20 and 9.21 during the period covered in such Financial
Statements and as at the end thereof and demonstrating compliance with such covenants, if required under the terms of this Agreement, and (ii) stating that, except as explained in reasonable detail in such certificate, (A) all of the representations
and warranties of the Borrower contained in this Agreement and the other Loan Documents are correct and complete in all material respects as at the date of such certificate as if made at such time, except for those that speak as of a particular day,
(B) the Borrower is, at the date of such certificate, in compliance in all material respects with all of its respective covenants and agreements in this Agreement and the other Loan Documents, (C) no Default or Event of Default then exists or
existed during the period covered by such Financial Statements, (D) describing and analyzing in reasonable detail all material trends, changes, and developments in each and all Financial Statements; and (E) explaining the variances of the figures in
the corresponding budgets and prior Fiscal Year financial statements. If such certificate discloses that a representation or warranty is not correct or complete, or that a covenant has not been complied with, or that a Default or Event of Default
existed or exists, such certificate shall set forth what action the Borrower has taken or proposes to take with respect thereto. 
  

 33 

 (f) No sooner than sixty (60) days and not less than thirty (30) days prior to the beginning of each
Fiscal Year, annual forecasts (to include forecasted consolidated and consolidating balance sheets, statements of income and expenses and statements of cash flow) for the Borrower and its Subsidiaries as at the end of and for each month of such
Fiscal Year. 
  
 (g) Promptly after filing with the PBGC and the
IRS, a copy of each annual report or other filing filed with respect to each Plan of the Borrower. 
  
 (h) Promptly upon the filing thereof, copies of all reports, if any, to or other documents filed by the Borrower or any of its Subsidiaries with the
Securities and Exchange Commission under the Exchange Act, and all reports, notices, or statements sent or received by the Borrower or any of its Subsidiaries to or from the holders of any equity interests of the Borrower (other than routine
non-material correspondence sent by shareholders of the Borrower to the Borrower) or any such Restricted Subsidiary or of any Debt for Borrowed Money of the Borrower or any of its Restricted Subsidiaries registered under the Securities Act of 1933
or to or from the trustee under any indenture under which the same is issued. 
  
 (i) As soon as available, but in any event not later than 15 days after the Borrower’s receipt thereof, a copy of all management reports and management letters prepared for the Borrower by any independent
certified public accountants of the Borrower. 
  
 (j) Promptly
after their preparation, copies of any and all proxy statements, financial statements, and reports which the Borrower makes available to its shareholders. 
  
 (k) Promptly after filing with the IRS, a copy of each tax return filed by the Borrower or by any of its Restricted Subsidiaries. 
  
 (l) Such additional information as the Agent and/or any Lender may from time
to time reasonably request regarding the financial and business affairs of the Borrower or any Restricted Subsidiary. 
  
 7.3 Notices to the Lenders. The Borrower shall notify the Agent and the Lenders, in writing of the following matters at the following times:

  
 (a) Immediately after becoming aware of any Default or Event
of Default. 
  
 (b) Immediately after becoming aware of the
assertion by the holder of any Debt of the Borrower or any Restricted Subsidiary in excess of $1,000,000 in principal amount that a default exists with respect thereto or that the Borrower or such Restricted Subsidiary is not in compliance with the
terms thereof, or the threat or commencement by such holder of any enforcement action because of such asserted default or non-compliance. 
  
 (c) Immediately after becoming aware of any material adverse change in the Borrower’s or any Restricted Subsidiary’s property, business,
operations, or condition (financial or otherwise). 
  

 34 

 (d) Immediately after becoming aware of any pending or threatened action, suit, proceeding, or
counterclaim by any Person, or any pending or threatened investigation by a Governmental Authority, which could reasonably be expected to materially and adversely affect the Collateral, the repayment of the Obligations, the Agent’s or any
Lender’s rights under the Loan Documents, or the Borrower’s or any Restricted Subsidiary’s property, business, operations, or condition (financial or otherwise). 
  
 (e) Immediately after becoming aware of any pending or threatened strike, work stoppage, unfair labor practice claim, or
other labor dispute affecting the Borrower or any of its Restricted Subsidiaries in a manner which could reasonably be expected to have a Material Adverse Effect. 
  
 (f) Immediately after becoming aware of any violation of any law, statute, regulation, or ordinance of a Governmental
Authority affecting the Borrower or any Restricted Subsidiary which could reasonably be expected to have a Material Adverse Effect. 
  
 (g) Immediately after receipt of any notice of any violation by the Borrower or any of its Restricted Subsidiaries of any Environmental Law which could
reasonably be expected to have a Material Adverse Effect or of the imposition of any Environmental Lien against any property of the Borrower or any of its Restricted Subsidiaries or that any Governmental Authority has asserted that the Borrower or
any Restricted Subsidiary is not in compliance with any Environmental Law or is investigating the Borrower’s or such Restricted Subsidiary’s compliance therewith, in each case, which could reasonably be expected to have a Material Adverse
Effect. 
  
 (h) Immediately after receipt of any written notice
that the Borrower or any of its Restricted Subsidiaries is or may be liable to any Person as a result of the Release or threatened Release of any Contaminant or that the Borrower or any Restricted Subsidiary is subject to investigation by any
Governmental Authority evaluating whether any remedial action is needed to respond to the Release or threatened Release of any Contaminant which, in either case, is reasonably likely to have a Material Adverse Effect. 
  
 (i) Any change in the Borrower’s name, state of organization, or form of
organization, in each case at least thirty (30) days prior thereto. 
  
 (j) Within ten (10) Business Days after the Borrower or any ERISA Affiliate knows or has reason to know, that an ERISA Event or a prohibited transaction (as defined in Sections 406 of ERISA and 4975 of the Code) has occurred, and, when
known, any action taken or threatened by the IRS, the DOL or the PBGC with respect thereto. 
  
 (k) Upon request, copies of the following: (i) each annual report (form 5500 series), including Schedule B thereto, filed with the PBGC, the DOL or the IRS with respect to each Plan, (ii) a copy of each funding waiver
request filed with the PBGC, the DOL or the IRS with respect to any Plan and all communications received by the Borrower or any ERISA Affiliate from the PBGC, the DOL or the IRS with respect to such request, and (iii) a copy of each other filing or
notice filed with the PBGC, the DOL or the IRS, with respect to each Plan of either Borrower or any ERISA Affiliate. 
  

 35 

 (l) Of the occurrence of any of the following events affecting the Borrower or any ERISA Affiliate (but
in no event more than 10 days after such event), together with a copy of any notice with respect to such event that is filed with a Governmental Authority and any notice delivered by a Governmental Authority to the Borrower or any ERISA Affiliate
with respect to such event: 
  
 (i) an ERISA
Event; 
  
 (ii) a material increase in the
Unfunded Pension Liability of any Pension Plan; 
  
 (iii) the adoption of, or the commencement of contributions to, any Plan subject to Section 412 of the Code by the Borrower or any ERISA Affiliate; or 
  

(iv) the adoption of any amendment to a Plan subject to Section 412 of the Code, if such amendment results in a material increase in
contributions or Unfunded Pension Liability; and 
  
 (m) Prior
notice of any material change in accounting policies or financial reporting practices by the Borrower or any of its consolidated Subsidiaries. 
  
 Each notice given under this Section shall describe the subject matter thereof in reasonable detail, and shall set forth the action that the Borrower, its
Subsidiary, or any ERISA Affiliate, as applicable, has taken or proposes to take with respect thereto. 
  
 ARTICLE 8 
  
 GENERAL WARRANTIES AND REPRESENTATIONS 
  
 The
Borrower warrants and represents to the Agent and the Lenders that except as hereafter disclosed to and accepted by the Agent and the Majority Lenders in writing: 
  
 8.1 Authorization, Validity, and Enforceability of this Agreement and the Loan Documents. The Borrower has the
corporate power and authority to execute, deliver and perform this Agreement and the other Loan Documents, to incur the Obligations, and to grant to the Agent Liens upon and security interests in the Collateral of the Borrower. The Borrower has
taken all necessary corporate action (including obtaining approval of its stockholders if necessary) to authorize its execution, delivery, and performance of this Agreement and the other Loan Documents to which it is a party. This Agreement and the
other Loan Documents have been duly executed and delivered by the Borrower, and constitute the legal, valid and binding obligations of the Borrower, enforceable against it in accordance with their respective terms without defense, setoff or
counterclaim. The Borrower’s execution, delivery, and performance of this Agreement and the other Loan Documents, including the grant or perfection of the Agent’s Liens, do not and will not conflict with, or constitute a violation or
breach of, or constitute a default under, or result in the creation or imposition of any Lien upon the property of the Borrower or any of its Restricted Subsidiaries by reason of the terms of (a) any contract, mortgage, Lien, lease, agreement,
indenture, or instrument to which the Borrower is a party or which is binding upon it, (b) any Requirement of Law applicable to the Borrower or any of its Restricted Subsidiaries, or (c) the certificate or articles of incorporation or by-laws or
other organizational document of the Borrower or any of its Restricted Subsidiaries. 
  

 36 

 8.2 Validity and Priority of Security Interest. The provisions of the Collateral Documents (other
than the AMD Security Agreement) create legal and valid Liens on all the Collateral of the Borrower in favor of the Agent, for the ratable benefit of the Agent and the Lenders, and constitute first priority perfected and continuing Liens, having
priority over all other Liens, in each case, securing all the Obligations, and enforceable against the Borrower and all third parties. 
  
 8.3 Organization and Qualification. The Borrower (a) is duly organized and validly existing in good standing under the laws of the state of its
incorporation, (b) is qualified to do business and is in good standing in the jurisdictions set forth on Schedule 8.3 which are the only jurisdictions in which qualification is necessary in order for it to own or lease its property and
conduct its business, and (c) has all requisite power and authority to conduct its business and to own its property. 
  
 8.4 Corporate Name; Prior Transactions. As of the Closing Date, the Borrower has not been known by or used any other fictitious name other than
“FASL”. 
  
 8.5 Subsidiaries and Affiliates.
Schedule 8.5 is a correct and complete list of the name and relationship to the Borrower of each of the Borrower’s Subsidiaries as of the Closing Date. Each Restricted Subsidiary is (a) duly incorporated and/or organized and validly
existing in good standing under the laws of its state of incorporation or organization set forth on Schedule 8.5, and (b) qualified to do business as a foreign corporation, partnership or limited liability company and in good standing in each
jurisdiction in which the failure to so qualify or be in good standing could reasonably be expected to have a material adverse effect on any such Restricted Subsidiary’s business, operations, property, or condition (financial or otherwise) and
(c) has all requisite power and authority to conduct its business and own its property. 
  
 8.6 Financial Statements and Projections. 
  
 (a) The Parents have delivered to the Agent and the Lenders an unaudited pro forma balance sheet for the Borrower and its consolidated Subsidiaries as of June 30, 2003. Such balance sheet has been prepared in
accordance with GAAP and presents accurately and fairly the pro forma financial position of the Borrower and its consolidated Subsidiaries as at the date thereof. 
  
 (b) The Latest Projections when submitted to the Lenders as required herein represent the Borrower’s good faith
estimate of the future financial performance of the Borrower and its consolidated Subsidiaries for the periods set forth therein. The Latest Projections have been prepared on the basis of the assumptions set forth therein, which the Borrower
believes are fair and reasonable in light of current and reasonably foreseeable business conditions at the time submitted to the Lender. 
  

 37 

 8.7 Solvency. The Borrower is Solvent prior to and after giving effect to the assumption of the
Existing Loans. 
  
 8.8 Debt. As of the Closing Date, the
Borrower and its Restricted Subsidiaries have no Debt, except (a) the Obligations, (b) Debt described on Schedule 8.8, (c) trade payables and other contractual obligations arising in the ordinary course of business, and (d) Subordinated
Parent Debt. 
  
 8.9 Distributions. No Distribution has
been declared, paid, or made upon or in respect of any capital stock or other securities of the Borrower as of the Closing Date, other than Distributions that are permitted pursuant to Section 9.9. 
  
 8.10 Title to Property. The Borrower has good and marketable title in
fee simple to its real property, and except as specifically disclosed in Schedule 8.10, the Borrower has good, indefeasible, and merchantable title to all of its other property, and all of such property constituting Collateral is free of all
Liens except Permitted Liens. 
  
 8.11 [Reserved]

  
 8.12 Litigation. Except as specifically disclosed in
Schedule 8.12, there are no actions, suits, proceedings, claims or disputes pending, or to the best knowledge of the Borrower, threatened or contemplated, at law, in equity, in arbitration or before any Governmental Authority, against the
Borrower, or its Restricted Subsidiaries or any of their respective properties which: 
  
 (a) purport to affect or pertain to this Agreement or any other Loan Document, or any of the transactions contemplated hereby or thereby; or 
  
 (b) if determined adversely to the Borrower or its Restricted Subsidiaries, would reasonably be expected to have a Material
Adverse Effect. No injunction, writ, temporary restraining order or any order of any nature has been issued by any court or other Governmental Authority purporting to enjoin or restrain the execution, delivery or performance of this Agreement or any
other Loan Document, or directing that the transactions provided for herein or therein not be consummated as herein or therein provided. 
  
 8.13 Restrictive Agreements. As of the Closing Date, neither the Borrower nor any of its Restricted Subsidiaries is a party to any contract or
agreement, or subject to any charter or other corporate or similar restriction, or any Requirement of Law, which would in any respect reasonably be expected to cause a Material Adverse Effect. 
  
 8.14 Labor Disputes. As of the Closing Date, (a) there is no
collective bargaining agreement or other labor contract covering employees of the Borrower or any of its Restricted Subsidiaries, (b) no such collective bargaining agreement or other labor contract is scheduled to expire during the term of this
Agreement, (c) no union or other labor organization is seeking to organize, or to be recognized as, a collective bargaining unit of employees of the Borrower or any of its Restricted Subsidiaries or for any similar purpose, and (d) there is no
pending or (to the best of the Borrower’s knowledge) threatened, strike, work stoppage, material unfair labor practice claim, or other material labor dispute against or affecting the Borrower or its Restricted Subsidiaries or their employees.

  

 38 

 8.15 Environmental Laws. Except as specifically disclosed on Schedule 8.15, as of the
Closing Date: 
  
 (a) to the best of the Borrower’s
knowledge, the on-going operations of the Borrower and each of its Restricted Subsidiaries comply in all respects with all Environmental Laws, except such non-compliance which would not (if enforced in accordance with applicable law) result in
liability in excess of $25,000,000 in the aggregate. 
  
 (b) the
Borrower and each of its Restricted Subsidiaries have obtained all licenses, permits, authorizations and registrations required under any Environmental Law (“Environmental Permits”) and necessary for their respective ordinary course
operations, all such Environmental Permits are in good standing, and the Borrower and each of its Restricted Subsidiaries are in compliance with all material terms and conditions of such Environmental Permits; 
  
 (c) none of the Borrower, any of its Restricted Subsidiaries or any of their
respective present property or operations, is subject to any outstanding written order from or agreement with any Governmental Authority, nor subject to any judicial or docketed administrative proceeding, respecting any Environmental Law,
Environmental Claim or Contaminant; and 
  
 (d) to the best of the
Borrower’s knowledge, there are no Contaminants or other conditions or circumstances existing with respect to any property of the Borrower or any Restricted Subsidiary, or arising from operations prior to the Closing Date of the Borrower or any
of its Restricted Subsidiaries that would reasonably be expected to give rise to Environmental Claims with a potential liability of the Borrower and its Restricted Subsidiaries in excess of $25,000,000 in the aggregate for any such condition,
circumstance or property and in addition, (i) neither the Borrower nor any Restricted Subsidiary has any underground storage tanks (A) that are not properly registered or permitted under applicable Environmental Laws, or (B) that are leaking or
disposing of Contaminants off-site, and (ii) the Borrower and its Restricted Subsidiaries have notified all of their employees of the existence, if any, of any health hazard arising from the conditions of their employment and have met all
notification requirements under Title III of CERCLA and all other Environmental Laws. 
  
 8.16 No Violation of Law. Neither the Borrower nor any of its Restricted Subsidiaries is in violation of any law, statute, regulation, ordinance, judgment, order, or decree applicable to it which violation
could reasonably be expected to have a Material Adverse Effect. 
  
 8.17 No Default. Neither the Borrower nor any of its Restricted Subsidiaries is in default with respect to any note, indenture, loan agreement, mortgage, lease, deed, or other agreement to which the Borrower or such Restricted
Subsidiary is a party or by which it is bound, which default could reasonably be expected to have a Material Adverse Effect. 
  

 39 

 8.18 ERISA Compliance. As of the Closing Date: 
  
 (a) Each Plan is in compliance in all material respects with the applicable
provisions of ERISA, the Code and other federal or state law. Each Plan is intended to qualify under Section 401(a) of the Code and to the best knowledge of the Borrower, nothing has occurred which would cause the loss of such qualification. The
Borrower and each ERISA Affiliate has made all required contributions to any Plan subject to Section 412 of the Code, and no application for a funding waiver or an extension of any amortization period pursuant to Section 412 of the Code has been
made with respect to any Plan. 
  
 (b) There are no pending or, to
the best knowledge of Borrower, threatened claims, actions or lawsuits, or action by any Governmental Authority, with respect to any Plan which has resulted or could reasonably be expected to result in a Material Adverse Effect. There has been no
prohibited transaction or violation of the fiduciary responsibility rules with respect to any Plan which has resulted or could reasonably be expected to result in a Material Adverse Effect. 
  
 (c) (i) No ERISA Event has occurred or is reasonably expected to occur; (ii)
no Pension Plan has any Unfunded Pension Liability; (iii) neither the Borrower nor any ERISA Affiliate has incurred, or reasonably expects to incur, any liability under Title IV of ERISA with respect to any Pension Plan (other than premiums due and
not delinquent under Section 4007 of ERISA); (iv) neither the Borrower nor any ERISA Affiliate has incurred, or reasonably expects to incur, any liability (and no event has occurred which, with the giving of notice under Section 4219 of ERISA, would
result in such liability) under Section 4201 or 4243 of ERISA with respect to a Multiemployer Plan; and (v) neither the Borrower nor any ERISA Affiliate has engaged in a transaction that could be subject to Section 4069 or 4212(c) of ERISA.

  
 8.19 Taxes. The Borrower and its Restricted
Subsidiaries have filed all federal and other tax returns and reports required to be filed, and have paid all federal and other taxes, assessments, fees and other governmental charges levied or imposed upon them or their properties, income or assets
otherwise due and payable. There is no proposed tax assessment against the Borrower or any of its Restricted Subsidiaries that would, if made, have a Material Adverse Effect. For Federal income tax purposes, the Borrower is a partnership and not an
association taxable as a corporation. Neither the execution and delivery of this Agreement, the other Loan Documents nor the consummation of any of the transactions contemplated hereby or thereby shall affect such status. 

 
 8.20 Regulated Entities. None of the Borrower, any Person
controlling the Borrower, or any Subsidiary, is an “Investment Company” within the meaning of the Investment Company Act of 1940. The Borrower is not subject to regulation under the Public Utility Holding Company Act of 1935, the Federal
Power Act, the Interstate Commerce Act, any state public utilities code or law, or any other federal or state statute or regulation limiting its ability to incur indebtedness. 
  
 8.21 Use of Proceeds; Margin Regulations. The proceeds of the Loans are to be used solely for working capital or
general corporate purposes, not in contravention of this Agreement, including any payments provided for in this Agreement. Neither the Borrower nor any Subsidiary is engaged in the business of purchasing or selling Margin Stock or extending credit
for the purpose of purchasing or carrying Margin Stock. 
  

 40 

 8.22 Copyrights, Patents, Trademarks and Licenses, etc. To the best of the Borrower’s
knowledge, the Borrower or its Restricted Subsidiaries own or is licensed or otherwise has the right to use all of the patents, trademarks, service marks, trade names, copyrights, contractual franchises, licenses, rights of way, authorizations and
other rights that are reasonably necessary for the operation of its businesses, without conflict with the rights of any other Person. To the best knowledge of the Borrower, no slogan or other advertising device, product, process, method, substance,
part or other material now employed, or now contemplated to be employed, by the Borrower or any Restricted Subsidiary infringes upon any rights held by any other Person. Except as specifically disclosed on Schedule 8.22, no claim or
litigation regarding any of the foregoing is pending or, to the best of Borrower’s knowledge, threatened, and no patent, invention, device, application, principle or any statute, law, rule, regulation, standard or code is, to the best of the
Borrower’s knowledge, pending or proposed, which, in either case, could reasonably be expected to have a Material Adverse Effect. 
  
 8.23 No Material Adverse Change. No material adverse change has occurred in the Borrower’s Property, business, operations, or conditions
(financial or otherwise) since the date of the Financial Statements delivered to the Lender under Section 8.6(a). 
  
 8.24 Full Disclosure. None of the representations or warranties made by the Borrower or any Subsidiary in the Loan Documents as of the date such
representations and warranties are made or deemed made, and none of the statements contained in any exhibit, report, statement or certificate furnished by or on behalf of the Borrower or any Subsidiary in connection with the Loan Documents
(including the offering and disclosure materials delivered by or on behalf of the Borrower to the Lenders prior to the Closing Date), contains any untrue statement of a material fact or omits any material fact required to be stated therein or
necessary to make the statements made therein, in light of the circumstances under which they are made, not misleading as of the time when made or delivered (it being understood that although any financial projections and forecasts furnished by the
Borrower represent the Borrower’s best estimates and assumptions as to future performance, which the Borrower believes to be fair and reasonable as of the time made in the light of current and reasonably foreseeable business conditions, such
financial projections and forecasts as to future events are not to be viewed as facts and that actual results during the period or periods covered thereby may differ from the projected or forecasted results). 
  
 8.25 Governmental Authorization. No approval, consent, exemption,
authorization, or other action by, or notice to, or filing with, any Governmental Authority or other Person is necessary or required in connection with the execution, delivery or performance by, or enforcement against, the Borrower or any of its
Restricted Subsidiaries of this Agreement or any other Loan Document. 
  
 8.26 Insurance. The properties of the Borrower and its Restricted Subsidiaries are insured with financially sound and reputable insurance companies not Affiliates of the Borrower, in such amounts, with such deductibles and covering
such risks as are customarily carried by companies engaged in similar businesses and owning similar properties in localities where the Borrower or each such Restricted Subsidiary operates. 
  

 41 

 ARTICLE 9 
  
 AFFIRMATIVE AND NEGATIVE COVENANTS 
  
 The Borrower covenants to the Agent and each Lender that, effective from and after the Closing Date, and for so long as any of the Obligations remains
outstanding or this Agreement is in effect: 
  
 9.1 Taxes and
Other Obligations. The Borrower shall, and shall cause each of its Restricted Subsidiaries to, (a) file when due all tax returns and other reports which it is required to file; (b) pay, or provide for the payment, when due, of all taxes, fees,
assessments and other governmental charges against it or upon its property, income and franchises, make all required withholding and other tax deposits, and establish adequate reserves for the payment of all such items, and provide to the Agent and
the Lenders, upon reasonable request, satisfactory evidence of its timely compliance with the foregoing; and (c) pay when due all Debt owed by it, but subject to any subordination provisions contained in any instrument or agreement evidencing such
Debt, and all claims of materialmen, mechanics, carriers, warehousemen, landlords, processors and other like Persons, and all other indebtedness owed by it and perform and discharge in a timely manner all other obligations undertaken by it;
provided, however, neither the Borrower nor any of its Restricted Subsidiaries need pay any tax, fee, assessment, or governmental charge, that (i) it is contesting in good faith by appropriate proceedings diligently pursued, (ii) the
Borrower or its Restricted Subsidiary, as the case may be, has established proper reserves for as provided in GAAP, and (iii) no Lien (other than a Permitted Lien) results from such non-payment. 
  
 9.2 Corporate Existence and Good Standing. The Borrower shall, and
shall cause each of its Restricted Subsidiaries to (subject to the provisions of Section 9.8), maintain its corporate (or other legal form) existence and its qualification and good standing in all jurisdictions in which the failure to
maintain such existence and qualification or good standing could reasonably be expected to have a material adverse effect on the Borrower’s or such Restricted Subsidiary’s property, business, operations or condition (financial or
otherwise). 
  
 9.3 Compliance with Law and Agreements;
Maintenance of Licenses. The Borrower shall comply, and shall cause each Restricted Subsidiary to comply, in all material respects with all Requirements of Law of any Governmental Authority having jurisdiction over it or its business (including
the Federal Fair Labor Standards Act) except such as may be contested in good faith by appropriate proceedings diligently pursued. The Borrower shall, and shall cause each of its Subsidiaries to, obtain and maintain all licenses, permits,
franchises, and governmental authorizations necessary to own its property and to conduct its business. The Borrower shall not modify, amend or alter its Certificate of Formation or Operating Agreement other than in a manner which does not adversely
affect the rights of the Lenders or the Agent. 
  

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 9.4 Maintenance of Property. The Borrower shall, and shall cause each of its Restricted
Subsidiaries to, maintain all of its property necessary and useful in the conduct of its business, in good operating condition and repair, ordinary wear and tear excepted, using the standard of care typical in the industry in the operation and
maintenance of its facilities, and preserve or renew all of its registered patents, trademarks, trade names and service marks, the non-preservation of which could reasonably be expected to have a Material Adverse Effect. The Borrower shall, and
shall cause each Restricted Subsidiary to, use reasonable efforts, in the ordinary course of business, to preserve its business organization and goodwill. 
  
 9.5 Insurance. 
  
 (a) The Borrower shall maintain, and shall cause each of its Restricted Subsidiaries to maintain, with financially sound and reputable insurers having a
rating of at least A-VII or better by Best Rating Guide, insurance against loss or damage by fire with extended coverage; theft, burglary, pilferage and loss in transit; public liability and third party property damage; larceny, embezzlement or
other criminal liability; business interruption; public liability and third party property damage; and such other hazards or of such other types as is customary for Persons engaged in the same or similar business. 
  
 (b) The Borrower shall cause the Agent, for the ratable benefit of the Agent
and the Lenders, to be named (i) as secured party and sole loss payee in respect of each such policy insuring the Machinery & Equipment and the Fab 25 Facility, (ii) as secured party and loss payee, as its interests may appear, in respect of
each such policy insuring any other Collateral and (iii) additional insured in respect of each such liability policy, in each case, in a manner acceptable to the Agent. Each policy of insurance shall contain a clause or endorsement requiring the
insurer to give not less than thirty (30) days’ prior written notice to the Agent in the event of cancellation, non-renewal or amendment of the policy for any reason whatsoever and a clause or endorsement stating that the interest of the Agent
shall not be impaired or invalidated by any act or neglect of the Borrower or any of its Subsidiaries or the owner of any premises for purposes more hazardous than are permitted by such policy. All premiums for such insurance shall be paid by the
Borrower when due, and certificates of insurance and, if requested by the Agent or any Lender, photocopies of the policies, shall be delivered to the Agent, in each case in sufficient quantity for distribution by the Agent to each of the Lenders. If
the Borrower fails to procure such insurance or to pay the premiums therefor when due, the Agent may, and at the direction of the Majority Lenders shall, do so from the proceeds of Loans. 
  
 (c) The Borrower shall promptly notify the Agent and the Lenders of any loss, damage, or destruction to the Collateral of
the Borrower in excess of $500,000, whether or not covered by insurance. During the existence of any Event of Default, the Agent is hereby authorized to collect all insurance proceeds in respect of Collateral of the Borrower directly, and to apply
or remit them as follows: after deducting from such proceeds the reasonable expenses, if any, incurred by the Agent in the collection or handling thereof, ratably, to the reduction of the Obligations in the order provided for in Section 4.5.

  
 9.6 Environmental Laws. The Borrower shall, and shall
cause each of its Restricted Subsidiaries to, conduct its business in compliance with all Environmental Laws applicable to it, including those relating to the generation, handling, use, storage, and disposal of any Contaminant. The Borrower shall,
and shall cause each of its Restricted Subsidiaries to, take prompt and appropriate action to respond to any non-compliance with Environmental Laws. 
  

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 9.7 Compliance with ERISA. The Borrower shall, and shall cause each of its ERISA Affiliates to:
(a) maintain each Plan in compliance in all material respects with the applicable provisions of ERISA, the Code and other federal or state law; (b) cause each Plan which is qualified under Section 401(a) of the Code to maintain such qualification;
(c) make all required contributions to any Plan subject to Section 412 of the Code; (d) not engage in a prohibited transaction or violation of the fiduciary responsibility rules with respect to any Plan; and (e) not engage in a transaction that
could be subject to Section 4069 or 4212(c) of ERISA. 
  
 9.8
Mergers, Consolidations or Sales. Neither the Borrower nor any of its Restricted Subsidiaries shall (a) windup, liquidate or dissolve or agree to do any of the foregoing, except for any winding-up, liquidation or dissolution of any Restricted
Subsidiary, or any agreement to do so, in which the assets of such Restricted Subsidiary are distributed to the Borrower or another Restricted Subsidiary, provided, however, that the assets of any U.S. Subsidiary which is the subject
of any such wind-up, liquidation or dissolution shall only be distributed to the Borrower or another U.S. Subsidiary, (b) during any Enhanced Covenant Period, but subject to the Grandfathering Rules, enter into any transaction of merger,
reorganization, or consolidation, or transfer, sell, assign, lease, or otherwise dispose of all or any part of its property, or agree to do any of the foregoing, except (i) sales of Inventory in the ordinary course of its business; (ii) sales or
other dispositions of Equipment (other than any Machinery & Equipment) in the ordinary course of business that is obsolete, worn-out or no longer useable by Borrower in its business; (iii) Permitted Affiliate Investments; (iv) [Reserved]; (v)
sales of assets (other than any Collateral) having an aggregate book value of (A) not more than $7,500,000 for all such assets so sold in any Fiscal Year and (B) not more than $22,500,00 for all such assets so sold after the Closing Date, (vi) sales
of manufacturing facilities and equipment which are made for fair market value, provided that (A) at the time of any such sale, no Event of Default shall exist or would result from such sale, (B) (1) 100% of the aggregate sales price in respect of
such sale shall be paid in cash, in the case of Machinery & Equipment, and (2) 75% of the aggregate sales price in respect of such sale shall be paid in cash, in the case of all other manufacturing facilities and equipment, (C) (1) the proceeds
of any such sale of Machinery & Equipment shall be either (x) reinvested within 180 days of such sale in replacement Machinery & Equipment, which shall be located at the Fab 25 Facility to be used in the ongoing operation of the Fab 25
Facility, or (y) used to repay the Loans in accordance with Section 4.8, and (2) the proceeds of any such sale of all other manufacturing facilities and equipment shall be reinvested within 24 months of such sale in replacement assets to be used in
the ongoing operation of the Borrower’s and its Restricted Subsidiaries’ business, and, in each case, pending such reinvestment, the cash proceeds of any such sale shall be held by the Borrower in the form of cash or cash equivalents, and
(D) (1) the fair market value of all Machinery & Equipment sold pursuant to this clause (vi) shall not exceed from and after the Closing Date $2,000,000 in any single transaction or $10,000,000 in the aggregate in any Fiscal Year, and (2) the
aggregate book value of all other assets so sold pursuant to this clause (vi) by the Borrower and its Restricted Subsidiaries, together, shall not exceed $50,000,000 from and after the Closing Date; (vii) mergers or consolidations between the
Borrower and any Restricted Subsidiary and between any Restricted 
  

 44 

 
Subsidiary and any other Restricted Subsidiary, provided that, with respect to any such transaction involving the Borrower, the Borrower shall be the
continuing or surviving entity; (viii) transfers of Equipment and Inventory between the Borrower and its Restricted Subsidiaries, and among Restricted Subsidiaries, permitted under Section 9.14(a); and (ix) transactions permitted under
Section 9.9 below. Notwithstanding anything to the contrary in this Section 9.8 or elsewhere in this Agreement, and whether or not an Enhanced Covenant Period then exists, (1) the sale or other disposition of Accounts shall not be permitted
at any time hereunder, (2) the Borrower shall not at any time consolidate or merge with or into, or sell, assign, transfer, lease, convey or otherwise dispose of all or substantially all of its properties or assets in one or more related
transactions to any Person except as permitted under the preceding clause (vii), (3) the sale or other disposition of the Machinery & Equipment, or the removal of the Machinery & Equipment from the Fab 25 Facility, shall not be permitted at
any time, except as otherwise provided in the preceding clause (vi), and (4) the sale or other disposition of the Fab 25 Facility shall not be permitted at any time. 
  
 9.9 Distributions; Capital Change; Restricted Investments. Neither the Borrower nor any of its Restricted
Subsidiaries shall (a) directly or indirectly declare or make, or incur any liability to make, any Distributions more frequently than after the end of each fiscal quarter to the extent that no Default or Event of Default would occur after giving
effect to any such payments, and (b) during any Enhanced Covenant Period, but subject to the Grandfathering Rules (i) directly or indirectly declare or make, or incur any liability to make, any Distribution, except (A) Distributions to the
Borrower by its Restricted Subsidiaries, (B) Distributions by any Wholly-Owned Subsidiary to the Borrower or any other Wholly-Owned Subsidiary, (C) redemptions, repurchases, retirements or other acquisitions of any equity interests of the Borrower
(1) in exchange for other equity interests of the Borrower upon the conversion of such equity interests into such other equity interests of the Borrower, or (2) out of the proceeds of the substantially concurrent sale (other than to a Subsidiary) of
other equity interests of the Borrower, and (D) Distributions by the Borrower to the Parents for “Tax Liability Distributions” contemplated in Section 5.1.1 of the Operating Agreement; (ii) make any change in its capital structure which
could have a Material Adverse Effect; or (iii) make any Restricted Investment. 
  
 9.10 Transactions Affecting Collateral or Obligations. Neither the Borrower nor any of its Restricted Subsidiaries shall enter into any transaction which would be reasonably expected to have a Material Adverse
Effect. 
  
 9.11 Guaranties. Neither the Borrower nor any
of its Restricted Subsidiaries shall during any Enhanced Covenant Period, but subject to the Grandfathering Rules, make, issue, become liable on or pay any Guaranty, except (i) Guaranties of the Obligations in favor of the Agent, (ii) other
Guaranties existing on the Closing Date and described on Schedule 9.11, and (iii) Guaranties by the Borrower or any Restricted Subsidiary guarantying Debt of the Borrower or any Restricted Subsidiary permitted under Section 9.12.

  
 9.12 Debt. Neither the Borrower nor any of its
Restricted Subsidiaries shall during any Enhanced Covenant Period, but subject to the Grandfathering Rules, incur any Debt, other than: (i) the Obligations; (ii) trade payables and contractual obligations to suppliers and customers arising in the
ordinary course of business; (iii) Debt described on Schedule 8.8; (iv) Debt 
  

 45 

 
constituting Permitted Affiliate Investments; (v) any refinancing, renewal or extension of any Debt the incurrence of which was permitted hereunder at the
time such Debt was so incurred so long as the principal amount thereof is not increased and such refinancing, renewal or extension is on substantially the same or more favorable terms (from the perspective of the Borrower and its Restricted
Subsidiaries) as the terms of the Debt being refinanced, renewed or extended, (vi) Guaranties permitted under Section 9.11, (vii) Debt in respect of capital leases, synthetic lease obligations and purchase money obligations for fixed or
capital assets within the limitations set forth in clause (j) of the definition of “Permitted Liens,” (viii) Subordinated Parent Debt, (ix) up to $115,000,000 of lease financing; and (x) up to $150,000,000 of revolving credit secured by
property other than the Collateral. 
  
 9.13 Prepayment.
Neither the Borrower nor any of its Restricted Subsidiaries shall during any Enhanced Covenant Period, but subject to the Grandfathering Rules, voluntarily prepay any Debt, except (i) the Obligations in accordance with the terms of this Agreement
and (ii) the prepayment of Debt in connection with a refinancing thereof permitted under clause (v) of Section 9.12. 
  
 9.14 Transactions with Affiliates. 
  
 (a) Except as set forth in Schedule 9.14 and below, neither the Borrower nor any of its Restricted Subsidiaries shall, sell, transfer, distribute,
or pay any money or property, including, but not limited to, any fees or expenses of any nature (including, but not limited to, any fees or expenses for management services), to any Affiliate, or lend or advance money or property to any Affiliate,
or invest in (by capital contribution or otherwise) or purchase or repurchase any stock or indebtedness, or any property, of any Affiliate, or become liable on any Guaranty of the indebtedness, dividends, or other obligations of any Affiliate.
Notwithstanding the foregoing, the Borrower and its Restricted Subsidiaries may (i) execute, deliver and perform its obligations under, and consummate the transactions contemplated by, the Operating Agreement and the Contribution Agreement and the
agreements contemplated under such agreements, and (ii) engage in other transactions with Affiliates, including the Permitted Affiliate Investments; provided that the terms of any such transactions described in this subsection (ii) shall be
no less favorable to the Borrower and its Restricted Subsidiaries than would be obtained in a comparable arms’-length transaction with a third party who is not an Affiliate. The Borrower shall fully disclose to the Agent and the Lenders the
amounts and terms of any such Affiliate transaction to the extent such transaction is not entered into in the ordinary course of the Borrower’s business or to the extent involving consideration in excess of $10,000,000. The parties acknowledge
that the Borrower and its Restricted Subsidiaries from time to time engage in transfers among each other of inventory and equipment on an arms-length basis in the ordinary course of business, and no further disclosure is required under this
Section 9.14(a) in that regard. Without limiting the operation of the foregoing provisions of this Section 9.14(a), the parties further acknowledge that (A) pursuant to the Sales and Purchase Agreement of FASL (Japan) Products among
AMD, Fujitsu and FASL Japan dated as of September 8, 1995 as amended, and related agreements (copies of which have been provided to the Agent), FASL Japan engages and will engage in transactions with AMD and AMDISS for the sale of wafers and the
joint development of technology, and certain joint licenses and cross licenses and other agreements in connection therewith, and (B) pursuant to the Operating Agreement and the Contribution Agreement and the agreements contemplated under such
agreements, the Borrower engages and will engage in transactions with AMD and AMDISS and in each such case, no further disclosure is required under this Section 9.14(a) in that regard. 
  

 46 

 (b) Borrower shall not enter into any lending or borrowing transaction with any employees of Borrower,
except loans to its respective employees, officers and directors on an arms’-length basis in the ordinary course of business consistent with past practices for travel and entertainment expenses, relocation costs and similar purposes up to a
maximum of $100,000 to any individual and up to a maximum of $2,000,000 in the aggregate at any one time outstanding. 
  
 9.15 Investment Banking and Finder’s Fees. Neither the Borrower nor any of its Subsidiaries shall pay or agree to pay, or reimburse any other
party with respect to, any investment banking or similar or related fee, underwriter’s fee, finder’s fee, or broker’s fee to any Person in connection with this Agreement. The Borrower shall defend and indemnify the Agent and the
Lenders against and hold them harmless from all claims of any Person that the Borrower is obligated to pay for any such fees, and all costs and expenses (including attorneys’ fees) incurred by the Agent and/or any Lender in connection
therewith. 
  
 9.16 Business Conducted. The Borrower shall
not and shall not permit any of its Subsidiaries to, engage directly or indirectly, in any material line of business substantially different from those lines of business in which the Borrower and its Subsidiaries are engaged on the Closing Date.

  
 9.17 Liens. 
  
 (a) Collateral. Neither the Borrower nor any of its Subsidiaries
shall create, incur, assume, or permit to exist any Lien on any property constituting Collateral now owned or hereafter acquired by any of them, except Permitted Liens. 
  
 (b) Non-Collateral. Neither the Borrower nor any of its Restricted Subsidiaries shall during any Enhanced Covenant
Period, but subject to the Grandfathering Rules, create, incur, or assume any Lien, or permit to exist any nonconsensual Lien, on any property not constituting Collateral now owned or hereafter acquired by any of them, except Permitted Liens.

  
 9.18 Fiscal Year. The Borrower shall not change its
Fiscal Year. 
  
 9.19 Adjusted Tangible Net Worth. At any
time that Net Domestic Cash is less than the Target Cash Level, the Borrower will maintain Adjusted Tangible Net Worth, determined as of the last day of each fiscal quarter, of not less than $850,000,000. 
  

 47 

 9.20 EBITDA. At any time that Net Domestic Cash is less than the Target Cash Level, the Borrower
will maintain EBITDA as of the last day of each fiscal period set forth below of not less than the amount set forth below opposite such fiscal period: 
  

	 Period

	    	 Amount

	 Quarter ending September 2003
	    	$ (40,000,000)
		
	 For the six months ending December 2003
	    	$  75,000,000  
		
	 For the nine months ending March 2004
	    	$170,000,000  
		
	 For the four quarters ending June 2004
	    	$285,000,000  
		
	 For the four quarters ending September 2004
	    	$475,000,000  
		
	 For the four quarters ending December 2004
	    	$550,000,000  
		
	 For the four quarters ending in 2005
	    	$640,000,000  
		
	 For the four quarters ending in 2006
	    	$800,000,000  

  
 9.21 Fixed Charge
Coverage Ratio. At any time that Net Domestic Cash is less than the Target Cash Level, the Borrower shall not permit, as of the last day of any fiscal quarter, the ratio of (a) EBITDA for the period of the last four fiscal quarters ended on such
date to (b) the sum of (i) interest expense for such period plus (ii) scheduled amortization of Debt For Borrowed Money for such period plus (iii) Capital Expenditures for such period, in each case, of the Borrower and its
Subsidiaries, as determined on a consolidated basis in accordance with GAAP, to be less than (1) –0.6 to 1.00 for the third fiscal quarter of 2003, (2) 0.2 to 1.00 for the fourth fiscal quarter of 2003, (3) 0.25 to 1.00 for the first fiscal
quarter of 2004, (4) 0.4 to 1.0 for the period ending June 2004, (5) 0.8 to 1.00 for the period ending September 2004, (6) 1.0 to 1.00 for the period ending December 2004, (7) 1.0 to 1.00 for the full fiscal year 2005, and (8) 0.9 to 1.00 for the
full fiscal year 2006. 
  
 9.22 Use of Proceeds. The
Borrower shall use the proceeds of the Loans for working capital and other general business purposes not in contravention of any Requirement of Law or of any Loan Document. The Borrower shall not, and shall not suffer or permit any Subsidiary to,
use any portion of the Loan proceeds, directly or indirectly, (i) to purchase or carry Margin Stock, (ii) to repay or otherwise refinance indebtedness of the Borrower or others incurred to purchase or carry Margin Stock, (iii) to extend credit for
the purpose of purchasing or carrying any Margin Stock, or (iv) to acquire any security in any transaction that is subject to Section 13 or 14 of the Exchange Act. 
  

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 9.23 Interest Rate Protection. Within thirty (30) days of receipt of a written notice from the
Agent regarding concerns over interest rate and currency fluctuation protection and at all times thereafter through the Stated Termination Date, the Borrower shall enter into and maintain one or more Rate Protection Arrangements, which shall be on
terms, for periods and with counterparties acceptable to the Agent, and by which the Borrower is protected against increases in interest rates from and after the date of such contracts as to a notional amount of not less than fifty percent (50%) (or
such lower percentage as shall be acceptable to the Agent) of the aggregate outstanding balances of the Loans at all such times. 
  
 9.24 Further Assurances. 
  
 (a) The Borrower shall execute and deliver, or cause to be executed and delivered, to the Agent and/or the Lenders such documents and agreements, and
shall take or cause to be taken such actions, as the Agent or any Lender may, from time to time, reasonably request to carry out the terms and conditions of this Agreement and the other Loan Documents. Without limiting the generality of the
preceding sentence, promptly upon request by the Agent or the Majority Lenders, the Borrower shall (and shall cause any of its Subsidiaries to) do, execute, acknowledge, deliver, record, re-record, file, re-file, register and re-register, any and
all such further acts, deeds, conveyances, security agreements, mortgages, assignments, estoppel certificates, control agreements, financing statements and continuations thereof, termination statements, notices of assignment, transfers,
certificates, assurances and other instruments the Agent or such Lenders, as the case may be, may reasonably require from time to time in order (i) to carry out more effectively the purposes of this Agreement or any other Loan Document, (ii) to
subject to the Liens created by any of the Loan Documents any of the properties, rights or interests covered by any of the Loan Documents, (iii) to perfect and maintain the validity, effectiveness and priority of any of the Loan Documents and the
Liens intended to be created thereby, and (iv) to better assure, convey, grant, assign, transfer, preserve, protect and confirm to the Agent and Lenders the rights granted or now or hereafter intended to be granted to the Agent and the Lenders under
any Loan Document or under any other document executed in connection therewith. 
  
 (b) The Borrower shall ensure that all written information, exhibits and reports furnished to the Agent or the Lenders do not and will not contain any untrue statement of a material fact and do not and will not omit
to state any material fact or any fact necessary to make the statements contained therein not misleading in light of the circumstances in which made, and will promptly disclose to the Agent and the Lenders and correct any defect or error that may be
discovered therein or in any Loan Document or in the execution, acknowledgement or recordation thereof. 
  
 9.25 Impairment of Intercompany Transfers. Borrower shall not directly or indirectly enter into or become bound by any agreement, instrument,
indenture or other obligation (other than this Agreement and the other Loan Documents) that could directly or indirectly restrict, prohibit or require the consent of any Person with respect to the payment of dividends or distributions or the making
or repayment of intercompany loans by a Restricted Subsidiary to Borrower. 
  

 49 

 9.26 No Speculative Transactions. Borrower shall not engage in any transaction involving commodity
options, futures contracts or similar transactions, except solely to hedge against fluctuations in the prices of commodities owned or purchased by it and the values of foreign currencies receivable or payable by it and interest swaps, caps or
collars. 
  
 ARTICLE 10 
  
 CONDITIONS PRECEDENT 
  
 10.1 Conditions to Effectiveness. The effectiveness of this Agreement
and the obligation of the Lenders to consent to the assignment of the Existing Loans from AMD and AMDISS to the Borrower is subject to the following conditions precedent having been satisfied in a manner satisfactory to the Agent and each Lender
(such date on which all of the following conditions are and remain satisfied, the “Closing Date”): 
  
 (a) This Agreement, the Parent Guaranties, the AMD Security Agreement and the other Loan Documents shall have been executed by each party thereto and/or
assigned to the Borrower as contemplated in the Assignment Agreement. 
  
 (b) The Parents or the Borrower shall have paid all fees due and payable to GECC and the Lenders as of the Closing Date, which fees shall be nonrefundable, and all fees and expenses of the Agent and the reasonable Attorney Costs incurred in
connection with any of the Loan Documents and the transactions contemplated thereby to the extent invoiced. 
  
 (c) The Agent shall have received: 
  
 (i) Copies of the resolutions of the Board of Managers of the Borrower authorizing the transactions contemplated hereby, certified as of
the Closing Date by the Secretary or an Assistant Secretary of the Borrower; 
  
 (ii) A certificate of the Secretary or Assistant Secretary of the Borrower, dated the Closing Date, certifying the names, titles and true signatures of the officer or officers of the Borrower authorized to execute,
deliver and perform, as applicable, this Agreement, and all other Loan Documents to be delivered by it hereunder; and 
  
 (iii) the Certificate of Formation and the Operating Agreement, certified by the Secretary or Assistant Secretary of the Borrower as of
the Closing Date. 
  

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 (d) All representations and warranties made hereunder and in the other Loan Documents shall be true and
correct as of the Closing Date as if made on such date. 
  
 (e) No
Default or Event of Default shall exist on the Closing Date, or would exist after giving effect to the assumption of the Existing Loans. 
  
 (f) A certificate signed by a Responsible Officer of the Borrower, dated as of the Closing Date, stating that: (A) the representations and warranties
contained in Article VIII are true and correct on and as of such date, (B) no Default or Event of Default exists, and (C) since December 29, 2002, no event or circumstance that has resulted or could reasonably be expected to result in a Material
Adverse Effect; 
  
 (g) All material conditions precedent to the
closing of the transactions under the Contribution Agreement shall have been satisfied; 
  
 (h) The Agent and the Lenders shall have received such opinions of counsel for the Borrower as the Agent or any Lender shall request, each such opinion to be in a form, scope, and substance satisfactory to the Agent,
the Lenders, and their respective counsel. 
  
 (i) The Agent shall
have received, in form and substance satisfactory to it: 
  
 (i) evidence that all filings, registrations and recordings have been made in the appropriate governmental offices, and all other action has been taken, which shall be necessary to create and/or continue, in favor of
the Agent on behalf of the Lenders, a perfected first priority Lien on the Collateral (subject only to Permitted Liens) and a second priority Lien on the collateral granted pursuant to the AMD Security Agreement, including evidence of recordation of
an amendment to the Deed of Trust (which may consist of a written or telephonic confirmation from the title insurance company), and amendments to UCC financing statements filed in connection with the Existing Loan Agreement, in each case in the
appropriate governmental offices; 
  
 (ii)
evidence that the Liens on the Collateral granted to the Agent on behalf of the Lenders are subject only to Permitted Liens, including the results of searches conducted in the UCC filing records in each of the governmental offices in which UCC-1
financing statements shall have been filed; 
  
 (iii) an endorsement to the title insurance policy (or a binding commitment therefor) for the Deed of Trust (A) issued by a title insurance company of recognized standing satisfactory to the Agent, (B) on an ALTA lender’s extended
coverage policy, in an amount and form satisfactory to the Agent, (C) naming the Agent, for the ratable benefit of the Lenders, as the insured thereunder, (D) insuring that the Deed of Trust insured thereby as assigned by AMD to the Borrower
continues to creates a valid first priority Lien on the property covered by such Deed of Trust, subject to no other Liens, other than Permitted Liens, and to no other exceptions, other than those satisfactory to the Agent, and (E) containing such
endorsements and affirmative coverage as the Agent or any Lender (through the Agent) may reasonably request; 
  

 51 

 (iv) such surveys, appraisals, consents of landlords, estoppels from landlords, tenant
subordination agreements and other documents and instruments in connection with assignment of the Deed of Trust pursuant to the Contribution Agreement as shall reasonably be deemed necessary by the Agent or any Lender; and 
  
 (v) evidence that all insurance required under this
Agreement and the Collateral Documents is in full force and effect; 
  
 (j) [Reserved] 
  
 (k) The Agent shall have received a
good standing and tax good standing certificate for the Borrower and AMD from the Secretary of State of Delaware, California and Texas as of a recent date, together with a bring-down certificate by facsimile dated the Closing Date, if requested by
the Agent; 
  
 (l) The Borrower shall have delivered to the Agent
the completed Schedules to this Agreement in form and substance reasonably satisfactory to the Agent; and 
  
 (m) All proceedings taken in connection with the execution of this Agreement, all other Loan Documents and all documents and papers relating thereto shall
be reasonably satisfactory in form, scope, and substance to the Agent and the Lenders. 
  
 The acceptance and assumption by the Borrower of the Existing Loans shall be deemed to be (i) a representation and warranty made by the Borrower to the effect that all of the conditions precedent to the assumption of
such Existing Loans have been satisfied, and (ii) a reaffirmation of the granting and continuance of Agent’s Liens, on behalf of itself and the Lenders, pursuant to the Collateral Documents, in each case with the same effect as delivery to the
Agent and the Lenders of a certificate signed by a Responsible Officer of the Borrower, dated such date, to such effect. 
  
 Execution and delivery to the Agent by a Lender of a counterpart of this Agreement shall be deemed confirmation by such Lender that (i) all conditions
precedent in this Section 10.1 have been fulfilled to the satisfaction of such Lender and (ii) the decision of such Lender to execute and deliver to the Agent an executed counterpart of this Agreement was made by such Lender independently and
without reliance on the Agent or any other Lender as to the satisfaction of any condition precedent set forth in this Section 10.1. 
  

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 ARTICLE 11 
  
 DEFAULT; REMEDIES 
  
 11.1 Events of Default. It shall constitute an event of default (“Event of Default”) if any one or more of the following shall occur for
any reason: 
  
 (a) any failure by the Borrower to pay (i) when
due, the principal of any of the Obligations or (ii) within three days after the same becomes due whether upon demand or otherwise, any interest or premium on any of the Obligations or any fee or other amount owing hereunder or under any of the
other Loan Documents; 
  
 (b) any representation or warranty made
or deemed made by the Borrower in this Agreement or by the Borrower or any of its Subsidiaries in any of the other Loan Documents, any Financial Statement, or any certificate furnished by the Borrower or any of its Subsidiaries at any time to the
Agent or any Lender is incorrect in any material respect as of the date on which made, deemed made, or furnished; 
  
 (c) (i) any default shall occur in the observance or performance of any of the covenants and agreements contained in Sections 9.2 (as to the Borrower),
9.3, 9.7, 9.8, 9.9, 9.11 through 9.23; or (ii) any default shall occur in the observance or performance of any of the covenants and agreements contained in Sections 7.2 and 7.3 and such default shall continue unremedied for a period of 10 days after
the earlier of (A) the date upon which a Responsible Officer knew or reasonably should have known of such default or (B) the date upon which written notice thereof is given to the Borrower by the Agent or any Lender; or (iii) any default shall occur
in the observance or performance of any of the other covenants and agreements contained in this Agreement, any other Loan Documents, or any other agreement entered into at any time to which the Borrower or any Subsidiary and the Agent or any Lender
are party, and such default shall continue unremedied for a period of 30 days after the earlier of (A) the date upon which a Responsible Officer knew or reasonably should have known of such default or (B) the date upon which written notice thereof
is given to the Borrower by the Agent or any Lender), or if any such agreement or document shall terminate (other than in accordance with its terms or the terms hereof or with the written consent of the Agent and the Majority Lenders) or become void
or unenforceable, without the written consent of the Agent and the Majority Lenders; 
  
 (d) any default shall occur with respect to any Debt For Borrowed Money of the Borrower or any of its Restricted Subsidiaries (other than the Obligations and Subordinated Parent Debt) in an outstanding principal
amount which exceeds $2,500,000, or under any agreement or instrument under or pursuant to which any such Debt For Borrowed Money may have been issued, created, assumed, or guaranteed by the Borrower or any of its Restricted Subsidiaries, and such
default shall continue for more than the period of grace, if any, therein specified, if the effect thereof (with or without the giving of notice or further lapse of time or both) is to accelerate, or to permit the holders of any such Debt For
Borrowed Money to accelerate, the maturity of any such Debt For Borrowed Money; or any such Debt For Borrowed Money shall be declared due and payable or be required to be prepaid (other than by a regularly 
  

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scheduled required prepayment) prior to the stated maturity thereof; or there occurs under any Rate Protection Arrangement an Early Termination Date (as
defined in such Rate Protection Arrangement) resulting from (1) any event of default under such Rate Protection Arrangement as to which the Borrower or any Restricted Subsidiary is the Defaulting Party (as defined in such Rate Protection
Arrangement) or (2) any Termination Event (as so defined) as to which the Borrower or any Restricted Subsidiary is an Affected Party (as so defined), and, in either event, the Swap Termination Value owed by the Borrower or such Restricted Subsidiary
as a result thereof is greater than $2,500,000; 
  
 (e) the
Borrower or any of its Restricted Subsidiaries shall (i) file a voluntary petition in bankruptcy or file a voluntary petition or an answer or otherwise commence any action or proceeding seeking reorganization, arrangement or readjustment of its
debts or for any other relief under the federal Bankruptcy Code, as amended, or under any other bankruptcy or insolvency act or law, state or federal, now or hereafter existing, or consent to, approve of, or acquiesce in, any such petition, action
or proceeding; (ii) apply for or acquiesce in the appointment of a receiver, assignee, liquidator, sequestrator, custodian, monitor, trustee or similar officer for it or for all or any part of its property; (iii) make an assignment for the benefit
of creditors; or (iv) be unable generally to pay its debts as they become due; 
  
 (f) an involuntary petition or proposal shall be filed or an action or proceeding otherwise commenced seeking reorganization, arrangement, consolidation or readjustment of the debts of the Borrower or any of its
Restricted Subsidiaries or for any other relief under the federal Bankruptcy Code, as amended, or under any other bankruptcy or insolvency act or law, state or federal, now or hereafter existing and either (i) such petition, proposal, action or
proceeding shall not have been dismissed within a period of sixty (60) days after its commencement or (ii) an order for relief against the Borrower or such Restricted Subsidiary shall have been entered in such proceeding; 
  
 (g) a receiver, assignee, liquidator, sequestrator, custodian, monitor,
trustee or similar officer for the Borrower or any of its Restricted Subsidiaries or for all or any part of its property shall be appointed or a warrant of attachment, execution or similar process shall be issued against any part of the property of
the Borrower or any of its Restricted Subsidiaries; 
  
 (h) the
Borrower or any of its Restricted Subsidiaries shall file a certificate of dissolution under applicable state law or shall be liquidated, dissolved or wound-up or shall commence or have commenced against it any action or proceeding for dissolution,
winding-up or liquidation, or shall take any corporate action in furtherance thereof; 
  
 (i) all or any material part of the property of the Borrower or any of its Restricted Subsidiaries shall be nationalized, expropriated or condemned, seized or otherwise appropriated, or custody or control of such
property or of the Borrower or such Restricted Subsidiary shall be assumed by any Governmental Authority or any court of competent jurisdiction at the instance of any Governmental Authority, except where contested in good faith by proper proceedings
diligently pursued where a stay of enforcement is in effect; 
  

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 (j) any Parent Guaranty or other guaranty of the Obligations shall be terminated, revoked or declared
void or invalid; 
  
 (k) one or more non-interlocutory judgments,
non-interlocutory orders, decrees or arbitration awards is entered against the Borrower or any Restricted Subsidiary involving in the aggregate liability (to the extent not covered by independent third-party insurance as to which the insurer does
not dispute coverage) as to any single or related or unrelated series of transactions, incidents or conditions, of $2,500,000 or more, and the same shall remain unsatisfied or unvacated and unstayed pending appeal for a period of 30 days after the
entry thereof; 
  
 (l) any loss, theft, damage or destruction of
any item or items of (i) Collateral or (ii) other property of the Borrower or any Restricted Subsidiary occurs which materially and adversely affects the property, business, operation or condition of the Borrower and its Restricted Subsidiaries
taken as a whole and is not adequately covered by insurance; 
  
 (m) there occurs a Material Adverse Effect; 
  
 (n) for
any reason other than the failure of the Agent to take any action available to it to maintain perfection of the Agent’s Liens, pursuant to the Loan Documents, any Loan Document ceases to be in full force and effect or any Lien with respect to
any material portion of the Collateral intended to be secured thereby ceases to be, or is not, valid, perfected and prior to all other Liens (other than Permitted Liens which are expressly permitted hereunder to be prior to the Agent’s Liens)
or is terminated, revoked or declared void; 
  
 (o) (i) an ERISA
Event shall occur with respect to a Pension Plan or Multi-employer Plan which has resulted or could reasonably be expected to result in liability of the Borrower under Title IV of ERISA to the Pension Plan, Multi-employer Plan or the PBGC in an
aggregate amount in excess of 5% of Adjusted Tangible Net Worth; (ii) the aggregate amount of Unfunded Pension Liability among all Pension Plans at any time exceeds 5% of Adjusted Tangible Net Worth; or (iii) the Borrower or any ERISA Affiliate
shall fail to pay when due, after the expiration of any applicable grace period, any installment payment with respect to its withdrawal liability under Section 4201 of ERISA under a Multi-employer Plan in an aggregate amount in excess of 5% of
Adjusted Tangible Net Worth; or 
  
 (p) there occurs a Change of
Control; or 
  
 (q) there occurs and is continuing an Event of
Default under and as defined in any of the Parent Guaranties, the Deed of Trust or any other Collateral Document. 
  
 11.2 Remedies. 
  
 (a) If an Event of Default exists, the Agent shall, at the direction of the Majority Lenders, do one or more of the following, at any time or times and in
any order, without notice to or demand on the Borrower: (A) terminate this Agreement; (B) declare any or all Obligations to be immediately due and payable; provided, however, that upon the occurrence of any Event of Default described
in Sections 11.1(e), 11.1(f), 11.1(g), or 11.1(h), the Commitments shall automatically and immediately expire and all Obligations shall automatically become immediately due and payable without notice or demand of any kind; and
(C) pursue its other rights and remedies under the Loan Documents and applicable law. 
  

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 (b) If an Event of Default has occurred and is continuing: (i) the Agent shall have for the benefit of
the Lenders, in addition to all other rights of the Agent and the Lenders, the rights and remedies of a secured party under the UCC; (ii) the Agent may, at any time, take possession of the Collateral and keep it on the Borrower’s premises, at
no cost to the Agent or any Lender, or remove any part of it to such other place or places as the Agent may desire, or the Borrower shall, upon the Agent’s demand, at the Borrower’s cost, assemble the Collateral of the Borrower and make it
available to the Agent at a place reasonably convenient to the Agent; and (iii) the Agent may sell and deliver any Collateral at public or private sales, for cash, upon credit or otherwise, at such prices and upon such terms as the Agent deems
advisable, in its sole discretion, and may, if the Agent deems it reasonable, postpone or adjourn any sale of the Collateral by an announcement at the time and place of sale or of such postponed or adjourned sale without giving a new notice of sale.
Without in any way requiring notice to be given in the following manner, the Borrower agrees that any notice by the Agent of sale, disposition or other intended action hereunder or in connection herewith, whether required by the UCC or otherwise,
shall constitute reasonable notice to the Borrower if such notice is mailed by registered or certified mail, return receipt requested, postage prepaid, or is delivered personally against receipt, at least five (5) Business Days prior to such action
to the Borrower’s address specified in or pursuant to Section 15.8. If any Collateral is sold on terms other than payment in full at the time of sale, no credit shall be given against the Obligations until the Agent or the Lenders
receive payment, and if the buyer defaults in payment, the Agent may resell the Collateral without further notice to the Borrower. In the event the Agent seeks to take possession of all or any portion of the Collateral by judicial process, the
Borrower irrevocably waives: (A) the posting of any bond, surety or security with respect thereto which might otherwise be required; (B) any demand for possession prior to the commencement of any suit or action to recover the Collateral; and (C) any
requirement that the Agent retain possession and not dispose of any Collateral until after trial or final judgment. The Borrower agrees that the Agent has no obligation to preserve rights to the Collateral or marshal any Collateral for the benefit
of any Person. To the maximum extent permitted by applicable law and by any applicable contract governing the usage thereof, the Agent is hereby granted a license or other right to use, without charge, the Borrower’s labels, patents,
copyrights, name, trade secrets, trade names, trademarks (subject to the Borrower’s right to police the proper usage of trademarks and the maintenance of product quality associated therewith), and advertising matter, or any similar property, in
completing production of any Collateral that is work-in-process, advertising or selling any Collateral, and the Borrower’s rights under all licenses and all franchise agreements shall inure to the Agent’s benefit for such purpose. The
proceeds of sale shall be applied first to all expenses of sale, including attorneys’ fees, and then to the Obligations. The Agent will return any excess to the Borrower and the Borrower shall remain liable for any deficiency. 
  
 (c) If an Event of Default occurs, the Borrower hereby waives all rights to
notice and hearing prior to the exercise by the Agent of the Agent’s rights to repossess the Collateral without judicial process or to reply, attach or levy upon the Collateral without notice or hearing. 
  

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 ARTICLE 12 
  
 TERM AND TERMINATION 
  
 12.1 Term and Termination. The term of this Agreement shall end on the Stated Termination Date, or on such earlier date as provided in this
Section 12.1. This Agreement shall automatically terminate without any further action of the parties if the Closing Date shall not have occurred on or prior to the Term Expiry Date. The Agent upon direction from the Majority Lenders may
terminate this Agreement at any time after the Closing Date without notice upon the occurrence of an Event of Default. Subject to Section 4.2, Borrower may terminate this Agreement at any time after the Closing Date, subject to payment and
satisfaction of all Obligations (including all unpaid principal, accrued interest and any early termination or prepayment fees or penalties). Upon the effective date of termination of this Agreement for any reason whatsoever, all Obligations
(including all unpaid principal, accrued interest and any early termination or prepayment fees or penalties) shall become immediately due and payable. Notwithstanding the termination of this Agreement, until all Obligations are indefeasibly paid and
performed in full in cash, the Borrower shall remain bound by the terms of this Agreement and the other Loan Documents and shall not be relieved of any of its Obligations, and the Agent and the Lenders shall retain all their rights and remedies
(including the Agent’s Liens in and all rights and remedies with respect to all then existing and after-arising Collateral). 
  
 12.2 Termination of Existing Loan Agreement and Mutual Release. Effective as of the Closing Date, the Existing Loan Agreement shall be terminated
and superseded by this Agreement except for the provisions and liabilities which by their terms are intended to survive such termination, including Section 4.6, Article 5, Section 14.7, and Section 15.11. Subject to the surviving obligations and
AMD’s obligations under the AMD Guaranty, AMD and AMDISS shall be released from all obligations and further liability under the Existing Loan Agreement. In consideration for such release, each of AMD and AMDISS acknowledges that it does not
have, and hereby irrevocably waives, any claims against the Agent or any Lender under the Existing Loan Agreement and agrees that the Agent and each of the Lenders shall, as between AMD and AMDISS, be released from all obligations and further
liability under the Existing Loan Agreement as of the Closing Date. 
  
 ARTICLE 13 
  
 AMENDMENTS; WAIVER; PARTICIPATIONS;
ASSIGNMENTS; SUCCESSORS 
  
 13.1 No Waivers; Cumulative
Remedies. No failure by the Agent or any Lender to exercise any right, remedy, or option under this Agreement or any present or future supplement thereto, or in any other agreement between or among the Borrower and the Agent and/or any Lender,
or delay by the Agent or any Lender in exercising the same, will operate as a waiver thereof. No waiver by the Agent or any Lender will be effective unless it is in writing, and then only to the extent specifically stated. No waiver by the Agent or
the Lenders on any occasion shall affect or diminish the Agent’s and each Lender’s rights thereafter to require strict performance by the Borrower of any provision of this Agreement. The Agent’s and each Lender’s rights under
this Agreement and the other Loan Documents will be cumulative and not exclusive of any other right or remedy which the Agent or any Lender may have. 
  

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 13.2 Amendments and Waivers. No amendment or waiver of any provision of this Agreement or any
other Loan Document, and no consent with respect to any departure by the Borrower therefrom, shall be effective unless the same shall be in writing and signed by the Majority Lenders (or by the Agent at the written request of the Majority Lenders)
and the Borrower and then any such waiver or consent shall be effective only in the specific instance and for the specific purpose for which given; provided, however, that no such waiver, amendment, or consent shall, unless in writing
and signed by all the Lenders and the Borrower and acknowledged by the Agent, do any of the following: 
  
 (a) increase or extend the Commitment of any Lender; 
  
 (b) postpone or delay any date fixed by this Agreement or any other Loan Document for any payment of principal, interest, fees or other amounts due to the
Lenders (or any of them) hereunder or under any other Loan Document; 
  
 (c) reduce the principal of, or the rate of interest specified herein on any Loan, or any fees or other amounts payable hereunder or under any other Loan Document; 
  
 (d) change the percentage of the Commitments or of the aggregate unpaid principal amount of the Loans which is required for
the Lenders or any of them to take any action hereunder; 
  
 (e)
amend this Section or any provision of the Agreement providing for consent or other action by all Lenders; 
  
 (f) release Collateral other than as permitted by Section 14.11; or 
  
 (g) change the definitions of “Majority Lenders” 
  
 and, provided further, that no amendment, waiver or consent shall, unless in writing and signed by the Agent, affect the
rights or duties of the Agent under this Agreement or any other Loan Document. 
  
 13.3 Assignments; Participations. 
  
 (a) Any Lender may, with the written consent of the Agent (which consent shall not be unreasonably withheld), after consultation with the Borrower, assign and delegate to one or more Eligible Assignees (provided that
no written consent of the Agent shall be required in connection with any assignment and delegation by a Lender to an Affiliate of such Lender) (each an “Assignee”) all, or any ratable part of all, of the Loans, the Commitments and
the other rights and obligations of such Lender hereunder, in a minimum amount of $5,000,000 (provided that, unless an assignor Lender has assigned and delegated all of its Loans and Commitments no such assignment and/or delegation shall be
permitted unless, after giving effect thereto, such assignor Lender retains a Commitment in a minimum amount of $5,000,000); provided, however, that the Borrower and the Agent may continue to deal solely and directly with such Lender
in connection with the interest so assigned to an Assignee until (i) written notice of such assignment, together with payment instructions, addresses and related information with respect to the Assignee, shall have been given to the Borrower and the
Agent by such Lender and the Assignee; (ii) such Lender and its Assignee shall have delivered to the Borrower and the Agent an Assignment and Acceptance in the form of Exhibit A (“Assignment and Acceptance”) and (iii) the
assignor Lender or Assignee has paid to the Agent a processing fee in the amount of $4,000. 
  

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 (b) From and after the date that the Agent notifies the assignor Lender that it has received an executed
Assignment and Acceptance and payment of the above-referenced processing fee, (i) the Assignee thereunder shall be a party hereto and, to the extent that rights and obligations have been assigned to it pursuant to such Assignment and Acceptance,
shall have the rights and obligations of a Lender under the Loan Documents, and (ii) the assignor Lender shall, to the extent that rights and obligations hereunder and under the other Loan Documents have been assigned by it pursuant to such
Assignment and Acceptance, relinquish its rights and be released from its obligations under this Agreement (and in the case of an Assignment and Acceptance covering all or the remaining portion of an assigning Lender’s rights and obligations
under this Agreement, such Lender shall cease to be a party hereto). 
  
 (c) By executing and delivering an Assignment and Acceptance, the assigning Lender thereunder and the Assignee thereunder confirm to and agree with each other and the other parties hereto as follows: (i) other than as provided in such
Assignment and Acceptance, such assigning Lender makes no representation or warranty and assumes no responsibility with respect to any statements, warranties or representations made in or in connection with this Agreement or the execution, legality,
validity, enforceability, genuineness, sufficiency or value of this Agreement or any other Loan Document furnished pursuant hereto or the attachment, perfection, or priority of any Lien granted by the Borrower to the Agent or any Lender in the
Collateral; (ii) such assigning Lender makes no representation or warranty and assumes no responsibility with respect to the financial condition of the Borrower or the performance or observance by the Borrower of any of its obligations under this
Agreement or any other Loan Document furnished pursuant hereto; (iii) such Assignee confirms that it has received a copy of this Agreement, together with such other documents and information as it has deemed appropriate to make its own credit
analysis and decision to enter into such Assignment and Acceptance; (iv) such Assignee will, independently and without reliance upon the Agent, such assigning Lender or any other Lender, and based on such documents and information as it shall deem
appropriate at the time, continue to make its own credit decisions in taking or not taking action under this Agreement; (v) such Assignee appoints and authorizes the Agent to take such action as agent on its behalf and to exercise such powers under
this Agreement as are delegated to the Agent by the terms hereof, together with such powers, including the discretionary rights and incidental power, as are reasonably incidental thereto; and (vi) such Assignee agrees that it will perform in
accordance with their terms all of the obligations which by the terms of this Agreement are required to be performed by it as a Lender. 
  
 (d) Immediately upon each Assignee’s making its processing fee payment under the Assignment and Acceptance, this Agreement shall be deemed to be
amended to the extent, but only to the extent, necessary to reflect the addition of the Assignee and the resulting adjustment of the Commitments arising therefrom. The Commitment allocated to each Assignee shall reduce such Commitments of the
assigning Lender pro tanto. 
  

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 (e) Any Lender may at any time sell to one or more commercial banks, financial institutions, or other
Persons not Affiliates of the Borrower (a “Participant”) participating interests in any Loans, the Commitment of that Lender and the other interests of that Lender (the “originating Lender”) hereunder and under the other
Loan Documents; provided, however, that (i) the originating Lender’s obligations under this Agreement shall remain unchanged, (ii) the originating Lender shall remain solely responsible for the performance of such obligations,
(iii) the Borrower and the Agent shall continue to deal solely and directly with the originating Lender in connection with the originating Lender’s rights and obligations under this Agreement and the other Loan Documents, and (iv) no Lender
shall transfer or grant any participating interest under which the Participant has rights to approve any amendment to, or any consent or waiver with respect to, this Agreement or any other Loan Document, and all amounts payable by the Borrower
hereunder shall be determined as if such Lender had not sold such participation; except that, if amounts outstanding under this Agreement are due and unpaid, or shall have been declared or shall have become due and payable upon the occurrence of an
Event of Default, each Participant shall be deemed to have the right of set-off in respect of its participating interest in amounts owing under this Agreement to the same extent and subject to the same limitation as if the amount of its
participating interest were owing directly to it as a Lender under this Agreement. 
  
 (f) Notwithstanding any other provision in this Agreement, any Lender may at any time create a security interest in, or pledge, all or any portion of its rights under and interest in this Agreement in favor of any
Federal Reserve Bank in accordance with Regulation A of the FRB or U.S. Treasury Regulation 31 CFR §203.14, and such Federal Reserve Bank may enforce such pledge or security interest in any manner permitted under applicable law. 
  
 ARTICLE 14 
  
 THE AGENT 
  
 14.1 Appointment and Authorization. Each Lender hereby designates and appoints GECC as its Agent under this Agreement and the other Loan Documents
and each Lender hereby irrevocably authorizes the Agent to take such action on its behalf under the provisions of this Agreement and each other Loan Document and to exercise such powers and perform such duties as are expressly delegated to it by the
terms of this Agreement or any other Loan Document, together with such powers as are reasonably incidental thereto. The Agent agrees to act as such on the express conditions contained in this Article 14. The provisions of this Article
14 are solely for the benefit of the Agent, the Agent-Related Persons and the Lenders and the Borrower shall have no rights as a third party beneficiary of any of the provisions contained herein. Notwithstanding any provision to the contrary
contained elsewhere in this Agreement or in any other Loan Document, the Agent shall not have any duties or responsibilities, except those expressly set forth herein, nor shall the Agent have or be deemed to have any fiduciary relationship with any
Lender, and no implied covenants, functions, responsibilities, duties, 
  

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obligations or liabilities shall be read into this Agreement or any other Loan Document or otherwise exist against the Agent. Without limiting the generality
of the foregoing sentence, the use of the term “agent” in this Agreement with reference to the Agent is not intended to connote any fiduciary or other implied (or express) obligations arising under agency doctrine of any applicable law.
Instead, such term is used merely as a matter of market custom, and is intended to create or reflect only an administrative relationship between independent contracting parties. Except as expressly otherwise provided in this Agreement, the Agent
shall have and may use its sole discretion with respect to exercising or refraining from exercising any discretionary rights or taking or refraining from taking any actions which the Agent is expressly entitled to take or assert under this Agreement
and the other Loan Documents, including the exercise of remedies pursuant to Section 11.2, and any action so taken or not taken shall be deemed consented to by the Lenders. 
  
 14.2 Delegation of Duties. The Agent may execute any of its duties under this Agreement or any other Loan Document by
or through agents, employees or attorneys-in-fact and shall be entitled to advice of counsel concerning all matters pertaining to such duties. The Agent shall not be responsible for the negligence or misconduct of any agent or attorney-in-fact that
it selects as long as such selection was made without gross negligence or willful misconduct. 
  
 14.3 Liability of Agent. None of the Agent-Related Persons shall (i) be liable for any action taken or omitted to be taken by any of them under or in connection with this Agreement or any other Loan Document or
the transactions contemplated hereby (except for its own bad faith, gross negligence or willful misconduct), or (ii) be responsible in any manner to any of the Lenders for any recital, statement, representation or warranty made by the Borrower or
any Subsidiary or Affiliate of the Borrower, or any officer thereof, contained in this Agreement or in any other Loan Document, or in any certificate, report, statement or other document referred to or provided for in, or received by the Agent under
or in connection with, this Agreement or any other Loan Document, or the validity, effectiveness, genuineness, enforceability or sufficiency of this Agreement or any other Loan Document, or for any failure of the Borrower or any other party to any
Loan Document to perform its obligations hereunder or thereunder. No Agent-Related Person shall be under any obligation to any Lender to ascertain or to inquire as to the observance or performance of any of the agreements contained in, or conditions
of, this Agreement or any other Loan Document, or to inspect the properties, books or records of the Borrower or any of the Borrower’s Subsidiaries or Affiliates. 
  
 14.4 Reliance by Agent-Related Persons. 
  
 (a) The Agent-Related Persons shall be entitled to rely, and shall be fully protected in relying, upon any writing,
resolution, notice, consent, certificate, affidavit, letter, telegram, facsimile, telex or telephone message, statement or other document or conversation believed by it to be genuine and correct and to have been signed, sent or made by the proper
Person or Persons, and upon advice and statements of legal counsel (including counsel to the Borrower), independent accountants and other experts selected by the Agent-Related Persons. Each Agent-Related Person shall be fully justified in failing or
refusing to take any action under this Agreement or any other Loan Document unless it shall first receive such advice or concurrence of the Majority Lenders as it deems appropriate and, if it so requests, it shall first be 
  

 61 

 
indemnified to its satisfaction by the Lenders against any and all liability and expense which may be incurred by it by reason of taking or continuing to
take any such action. Each Agent-Related Person shall in all cases be fully protected in acting, or in refraining from acting, under this Agreement or any other Loan Document in accordance with a request or consent of the Majority Lenders (or all
Lenders if so required by Section 13.2) and such request and any action taken or failure to act pursuant thereto shall be binding upon all of the Lenders. 
  
 (b) For purposes of determining compliance with the conditions specified in Article 10, each Lender that has executed this Agreement shall be
deemed to have consented to, approved or accepted or to be satisfied with, each document or other matter either sent by any Agent-Related Person to such Lender for consent, approval, acceptance or satisfaction, or required thereunder to be consented
to or approved by or acceptable or satisfactory to the Lender. 
  
 14.5 Notice of Default. The Agent shall not be deemed to have knowledge or notice of the occurrence of any Default or Event of Default, unless the Agent shall have received written notice from a Lender or the Borrower referring to
this Agreement, describing such Default or Event of Default and stating that such notice is a “notice of default.” The Agent will notify the Lenders of its receipt of any such notice. The Agent shall take such action with respect to such
Default or Event of Default as may be requested by the Majority Lenders in accordance with Section 11; provided, however, that unless and until the Agent has received any such request, the Agent may (but shall not be obligated
to) take such action, or refrain from taking such action, with respect to such Default or Event of Default as it shall deem advisable. 
  
 14.6 Credit Decision. Each Lender acknowledges that none of the Agent-Related Persons has made any representation or warranty to it, and that no
act by any Agent-Related Person hereinafter taken, including any review of the affairs of the Borrower and its Affiliates, shall be deemed to constitute any representation or warranty by any Agent-Related Person to any Lender. Each Lender represents
to each Agent-Related Person that it has, independently and without reliance upon any Agent-Related Person and based on such documents and information as it has deemed appropriate, made its own appraisal of and investigation into the business,
prospects, operations, property, financial and other condition and creditworthiness of the Borrower and its Affiliates, and all applicable bank regulatory laws relating to the transactions contemplated hereby, and made its own decision to enter into
this Agreement and to extend credit to the Borrower. Each Lender also represents that it will, independently and without reliance upon any Agent-Related Person and based on such documents and information as it shall deem appropriate at the time,
continue to make its own credit analysis, appraisals and decisions in taking or not taking action under this Agreement and the other Loan Documents, and to make such investigations as it deems necessary to inform itself as to the business,
prospects, operations, property, financial and other condition and creditworthiness of the Borrower. Except for notices, reports and other documents expressly herein required to be furnished to the Lenders by the Agent, the Agent shall not have any
duty or responsibility to provide any Lender with any credit or other information concerning the business, prospects, operations, property, financial and other condition or creditworthiness of the Borrower which may come into the possession of any
of the Agent-Related Persons. 
  

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 14.7 Indemnification. Whether or not the transactions contemplated hereby are consummated, the
Lenders shall indemnify upon demand the Agent-Related Persons (to the extent not reimbursed by or on behalf of the Borrower and without limiting the obligation of the Borrower to do so), pro rata, from and against any and all Indemnified Liabilities
as such term is defined in Section 15.11; provided, however, that no Lender shall be liable for the payment to the Agent-Related Persons of any portion of such Indemnified Liabilities resulting solely from such Person’s gross
negligence or willful misconduct. Without limitation of the foregoing, each Lender shall reimburse the Agent upon demand for its ratable share of any costs or out-of-pocket expenses (including Attorney Costs) incurred by the Agent in connection with
the preparation, execution, delivery, administration, modification, amendment or enforcement (whether through negotiations, legal proceedings or otherwise) of, or legal advice in respect of rights or responsibilities under, this Agreement, any other
Loan Document, or any document contemplated by or referred to herein, to the extent that the Agent is not reimbursed for such expenses by or on behalf of the Borrower. The undertaking in this Section shall survive the payment of all Obligations
hereunder and the resignation or replacement of the Agent. 
  
 14.8 Agent in Individual Capacity. GECC and its Affiliates may make loans to, issue letters of credit for the account of, accept deposits from, acquire equity interests in and generally engage in any kind of banking, trust, financial
advisory, underwriting or other business with the Borrower and its Subsidiaries and Affiliates as though GECC was not the Agent hereunder and without notice to or consent of the Lenders. The Lenders acknowledge that, pursuant to such activities,
GECC and its Affiliates may receive information regarding the Borrower or its Affiliates (including information that may be subject to confidentiality obligations in favor of the Borrower or such Subsidiary) and acknowledge that the Agent shall be
under no obligation to provide such information to them. With respect to its Loans, GECC shall have the same rights and powers under this Agreement as any other Lender and may exercise the same as though it was not the Agent, and the terms
“Lender” and “Lenders” include GECC in its individual capacity. 
  
 14.9 Successor Agent. The Agent may resign as Agent upon 30 days’ notice to the Lenders and the Borrower, such resignation to be effective upon the acceptance of a successor agent to its appointment as
Agent. In the event the GECC sells all of its Commitment and Loans as part of a sale, transfer or other disposition by GECC of substantially all of its loan portfolio, GECC shall resign as Agent and such purchaser or transferee shall become the
successor Agent hereunder. If the Agent resigns under this Agreement, subject to the proviso in the preceding sentence, the Majority Lenders shall appoint from among the Lenders a successor agent for the Lenders, which successor agent shall be
reasonably satisfactory to the Borrower. If no successor agent is appointed prior to the effective date of the resignation of the Agent, the Agent may appoint, after consulting with the Lenders and the Borrower, a successor agent from among the
Lenders, which successor agent shall be reasonably satisfactory to the Borrower. Upon the acceptance of its appointment as successor agent hereunder, such successor agent shall succeed to all the rights, powers and duties of the retiring Agent and
the term “Agent” shall mean such successor agent and the retiring Agent’s appointment, powers and duties as Agent shall be terminated. After any retiring Agent’s resignation hereunder as Agent, the provisions of this Section
14 shall inure to its benefit as to any actions taken or omitted to be taken by it while it was Agent under this Agreement. 
  

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 14.10 Withholding Tax. Each Lender organized under the laws of a jurisdiction outside the United
States (a “Foreign Lender”) as to which payments to be made under this Agreement or under any promissory note delivered hereunder are exempt from United States withholding tax under an applicable statute or tax treaty shall provide to
Borrower and Agent a properly completed and executed IRS Form W-8ECI or Form W-8BEN or other applicable form, certificate or document prescribed by the IRS or the United States certifying as to such Foreign Lender’s entitlement to such
exemption (a “Certificate of Exemption”). Any foreign Person that seeks to become a Lender under this Agreement shall provide a Certificate of Exemption to Borrower and Agent prior to becoming a Lender hereunder. No foreign Person may
become a Lender hereunder if such Person fails to deliver a Certificate of Exemption in advance of becoming a Lender. 
  
 14.11 Collateral Matters. 
  
 (a) The Lenders hereby irrevocably authorize the Agent, at its option and in its sole discretion, to release any Agent’s Lien upon any Collateral (i)
upon the termination of the Commitments and payment and satisfaction in full by Borrower of all Loans and all other Obligations; (ii) constituting property being sold or disposed of (including in connection with a sale-leaseback transaction) in
accordance with Section 9.8 if the Borrower certifies to the Agent that the sale or disposition is made in compliance with Section 9.8 (and the Agent may rely conclusively on any such certificate, without further inquiry); (iii)
constituting property in which the Borrower owned no interest at the time the Lien was granted or at any time thereafter; (iv) constituting property leased to the Borrower pursuant to a lease permitted hereunder if the Borrower certifies to the
Agent that such lease is permitted hereunder (and the Agent may rely conclusively on any such certificate, without further inquiry); or (v) constituting property acquired after the Closing Date and financed pursuant to Section 9.12(vii) if
the Borrower certifies to the Agent that such financing is made in compliance with Section 9.12(vii) (and the Agent may rely conclusively on any such certificate, without further inquiry). Except as provided above, the Agent will not release
any of the Agent’s Liens without the prior written authorization of the Lenders; provided that the Agent may, in its discretion, release the Agent’s Liens on Collateral valued in the aggregate not in excess of $10,000,000 during any
one year period without the prior written authorization of the Lenders. Upon request by the Agent or the Borrower at any time, the Lenders will confirm in writing the Agent’s authority to release any Agent’s Liens upon particular types or
items of Collateral pursuant to this Section 14.11. 
  
 (b)
Upon receipt by the Agent of any authorization required pursuant to Section 14.11(a) from the Lenders of the Agent’s authority to release any Agent’s Liens upon particular types or items of Collateral, and upon at least five (5)
Business Days’ prior written request by the Borrower, the Agent shall (and is hereby irrevocably authorized by the Lenders to) execute such documents as may be necessary to evidence the release of the Agent’s Liens upon such Collateral;
provided, however, that (i) the Agent shall not be required to execute any such document on terms which, in the Agent’s opinion, would expose the Agent to liability or create any obligation or entail any consequence other than the
release of such Liens without recourse or warranty, and (ii) such release shall not in any manner discharge, affect or impair the Obligations or any Liens (other than those expressly being released) upon (or obligations of the Borrower in respect
of) all interests retained by the Borrower, including the proceeds of any sale, all of which shall continue to constitute part of the Collateral. 
  

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 (c) The Agent shall have no obligation whatsoever to any of the Lenders to assure that the Collateral
exists or is owned by the Borrower or is cared for, protected or insured or has been encumbered, or that the Agent’s Liens have been properly or sufficiently or lawfully created, perfected, protected or enforced or are entitled to any
particular priority, or to exercise at all or in any particular manner or under any duty of care, disclosure or fidelity, or to continue exercising, any of the rights, authorities and powers granted or available to the Agent pursuant to any of the
Loan Documents, it being understood and agreed that in respect of the Collateral, or any act, omission or event related thereto, the Agent may act in any manner it may deem appropriate, in its sole discretion given the Agent’s own interest in
the Collateral in its capacity as one of the Lenders and that the Agent shall have no other duty or liability whatsoever to any Lender as to any of the foregoing. 
  
 (d) The Agent is authorized on behalf of all the Lenders, without the necessity of any notice to or further consent from the
Lenders, to execute and deliver the Intercreditor Agreement. 
  
 14.12 Restrictions on Actions by Lenders; Sharing of Payments. Each of the Lenders agrees that it shall not, without the express consent of all Lenders, and that it shall, to the extent it is lawfully entitled to do so, upon the
request of all Lenders, set off against the Obligations, any amounts owing by such Lender to the Borrower or any accounts of the Borrower now or hereafter maintained with such Lender. Each of the Lenders further agrees that it shall not, unless
specifically requested to do so by the Agent, take or cause to be taken any action to enforce its rights under this Agreement or against the Borrower, including the commencement of any legal or equitable proceedings, to foreclose any Lien on, or
otherwise enforce any security interest in, any of the Collateral. 
  
 (b) If at any time or times any Lender shall receive (i) by payment, foreclosure, setoff or otherwise, any proceeds of Collateral or any payments with respect to the Obligations of the Borrower to such Lender arising under, or relating to,
this Agreement or the other Loan Documents, except for any such proceeds or payments received by such Lender from the Agent pursuant to the terms of this Agreement, or (ii) payments from the Agent in excess of such Lender’s ratable portion of
all such distributions by the Agent, such Lender shall promptly (1) turn the same over to the Agent, in kind, and with such endorsements as may be required to negotiate the same to the Agent, or in same day funds, as applicable, for the account of
all of the Lenders and for application to the Obligations in accordance with the applicable provisions of this Agreement, or (2) purchase, without recourse or warranty, an undivided interest and participation in the Obligations owed to the other
Lenders so that such excess payment received shall be applied ratably as among the Lenders in accordance with their Pro Rata Shares; provided, however, that if all or part of such excess payment received by the purchasing party is
thereafter recovered from it, those purchases of participations shall be rescinded in whole or in part, as applicable, and the applicable portion of the purchase price paid therefor shall be returned to such purchasing party, but without interest
except to the extent that such purchasing party is required to pay interest in connection with the recovery of the excess payment. 
  

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 14.13 Agency for Perfection. Each Lender hereby appoints each other Lender as agent for the
purpose of perfecting the Lenders’ security interest in assets which, in accordance with Article 9 of the UCC can be perfected only by possession. Should any Lender (other than the Agent) obtain possession of any such Collateral, such Lender
shall notify the Agent thereof, and, promptly upon the Agent’s request therefor shall deliver such Collateral to the Agent or in accordance with the Agent’s instructions. 
  
 14.14 Payments by Agent to Lenders. All payments to be made by the Agent to the Lenders shall be made by bank wire
transfer or internal transfer of immediately available funds to each Lender pursuant to wire transfer instructions delivered in writing to the Agent on or prior to the Closing Date (or if such Lender is an Assignee, on the applicable Assignment and
Acceptance), or pursuant to such other wire transfer instructions as each party may designate for itself by written notice to the Agent. Concurrently with each such payment, the Agent shall identify whether such payment (or any portion thereof)
represents principal, premium or interest on the Loans or otherwise. 
  
 14.15 Concerning the Collateral and the Related Loan Documents. Each Lender authorizes and directs the Agent to enter into this Agreement and the other Loan Documents relating to the Collateral, for the ratable benefit of the Agent
and the Lenders. Each Lender agrees that any action taken by the Agent or Majority Lenders, as applicable, in accordance with the terms of this Agreement or the other Loan Documents relating to the Collateral, and the exercise by the Agent or the
Majority Lenders, as applicable, of their respective powers set forth therein or herein, together with such other powers that are reasonably incidental thereto, shall be binding upon all of the Lenders. 
  
 14.16 [Reserved]Relation Among Lenders. The Lenders are not partners
or co-venturers, and no Lender shall be liable for the acts or omissions of, or (except as otherwise set forth herein in case of the Agent) authorized to act for, any other Lender. 
  
 14.18 Other Agents. None of the Lenders or other Persons identified on the facing page or signature pages of this
Agreement as a “co-agent,” “sole arranger” or “syndication agent” (each, an “Other Agent”) shall have any right, power, obligation, liability, responsibility or duty under this Agreement other than those
expressly set forth herein or otherwise applicable to all Lenders as such. Without limiting the foregoing, (i) any Other Agent (other than the Agent) may at any time resign as an Other Agent hereunder, and (ii) none of the Lenders or other Persons
so identified shall have or be deemed to have any fiduciary relationship with any Lender. Each Lender acknowledges that it has not relied, and will not rely, on any of the Lenders or other Persons so identified in deciding to enter into this
Agreement or in taking or not taking action hereunder. 
  

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 ARTICLE 15 
  
 MISCELLANEOUS 
  
 15.1 Cumulative Remedies; No Prior Recourse to Collateral. The enumeration herein of the Agent’s and each Lender’s rights and remedies is
not intended to be exclusive, and such rights and remedies are in addition to and not by way of limitation of any other rights or remedies that the Agent and the Lenders may have under the UCC or other applicable law. The Agent and the Lenders shall
have the right, in their sole discretion, to determine which rights and remedies are to be exercised and in which order. The exercise of one right or remedy shall not preclude the exercise of any others, all of which shall be cumulative. The Agent
and the Lenders may, without limitation, proceed directly against the Borrower to collect the Obligations without any prior recourse to the Collateral. No failure to exercise and no delay in exercising, on the part of the Agent or any Lender, any
right, remedy, power or privilege hereunder, shall operate as a waiver thereof; nor shall any single or partial exercise of any right, remedy, power or privilege hereunder preclude any other or further exercise thereof or the exercise of any other
right, remedy, power or privilege. 
  
 15.2 Severability.
The illegality or unenforceability of any provision of this Agreement or any instrument or agreement required hereunder shall not in any way affect or impair the legality or enforceability of the remaining provisions of this Agreement or any
instrument or agreement required hereunder. 
  
 15.3 Governing
Law; Choice of Forum; Service of Process; Jury Trial Waiver. 
  
 (a) THIS AGREEMENT SHALL BE INTERPRETED AND THE RIGHTS AND LIABILITIES OF THE PARTIES HERETO DETERMINED IN ACCORDANCE WITH THE INTERNAL LAWS (AS OPPOSED TO THE CONFLICT OF LAWS PROVISIONS PROVIDED THAT PERFECTION ISSUES WITH RESPECT TO
ARTICLE 9 OF THE UCC MAY GIVE EFFECT TO APPLICABLE CHOICE OR CONFLICT OF LAW RULES SET FORTH IN ARTICLE 9 OF THE UCC) OF THE STATE OF NEW YORK; PROVIDED THAT THE AGENT AND THE LENDERS SHALL RETAIN ALL RIGHTS ARISING UNDER FEDERAL LAW. 
  
 (b) ANY LEGAL ACTION OR PROCEEDING WITH RESPECT TO THIS AGREEMENT OR ANY
OTHER LOAN DOCUMENT MAY BE BROUGHT IN THE COURTS OF THE STATE OF NEW YORK OR OF THE UNITED STATES FOR THE SOUTHERN DISTRICT OF NEW YORK, AND BY EXECUTION AND DELIVERY OF THIS AGREEMENT, EACH OF THE BORROWER, THE AGENT AND THE LENDERS CONSENTS, FOR
ITSELF AND IN RESPECT OF ITS PROPERTY, TO THE NON-EXCLUSIVE JURISDICTION OF THOSE COURTS. EACH OF THE BORROWER, THE AGENT AND THE LENDERS IRREVOCABLY WAIVES ANY OBJECTION, INCLUDING ANY OBJECTION TO THE LAYING OF VENUE OR BASED ON THE GROUNDS OF
FORUM NON CONVENIENS, WHICH IT MAY NOW OR HEREAFTER HAVE TO THE BRINGING OF ANY ACTION OR PROCEEDING IN SUCH JURISDICTION IN RESPECT OF THIS AGREEMENT OR ANY DOCUMENT RELATED HERETO. 
  

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NOTWITHSTANDING THE FOREGOING: (1) THE AGENT AND THE LENDERS SHALL HAVE THE RIGHT TO BRING ANY ACTION OR PROCEEDING AGAINST THE BORROWER OR ITS PROPERTY IN
THE COURTS OF ANY OTHER JURISDICTION THE AGENT OR THE LENDERS DEEM NECESSARY OR APPROPRIATE IN ORDER TO REALIZE ON THE COLLATERAL OR OTHER SECURITY FOR THE OBLIGATIONS AND (2) EACH OF THE PARTIES HERETO ACKNOWLEDGES THAT ANY APPEALS FROM THE COURTS
DESCRIBED IN THE IMMEDIATELY PRECEDING SENTENCE MAY HAVE TO BE HEARD BY A COURT LOCATED OUTSIDE THOSE JURISDICTIONS. 
  
 (c) THE BORROWER HEREBY WAIVES PERSONAL SERVICE OF ANY AND ALL PROCESS UPON IT AND CONSENTS THAT ALL SUCH SERVICE OF PROCESS MAY BE MADE BY REGISTERED
MAIL (RETURN RECEIPT REQUESTED) DIRECTED TO THE BORROWER AT ITS ADDRESS SET FORTH IN SECTION 15.8 AND SERVICE SO MADE SHALL BE DEEMED TO BE COMPLETED FIVE (5) DAYS AFTER THE SAME SHALL HAVE BEEN SO DEPOSITED IN THE U.S. MAILS. NOTHING
CONTAINED HEREIN SHALL AFFECT THE RIGHT OF AGENT OR THE LENDERS TO SERVE LEGAL PROCESS BY ANY OTHER MANNER PERMITTED BY LAW. 
  
 15.4 WAIVER OF JURY TRIAL. THE BORROWER, THE LENDERS AND THE AGENT EACH WAIVE THEIR RESPECTIVE RIGHTS TO A TRIAL BY JURY OF ANY CLAIM OR CAUSE OF
ACTION BASED UPON OR ARISING OUT OF OR RELATED TO THIS AGREEMENT, THE OTHER LOAN DOCUMENTS, OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY, IN ANY ACTION, PROCEEDING OR OTHER LITIGATION OF ANY TYPE BROUGHT BY ANY OF THE PARTIES AGAINST ANY OTHER
PARTY OR ANY AGENT-RELATED PERSON, PARTICIPANT OR ASSIGNEE, WHETHER WITH RESPECT TO CONTRACT CLAIMS, TORT CLAIMS, OR OTHERWISE. THE BORROWER, THE LENDERS AND THE AGENT EACH AGREE THAT ANY SUCH CLAIM OR CAUSE OF ACTION SHALL BE TRIED BY A COURT TRIAL
WITHOUT A JURY. WITHOUT LIMITING THE FOREGOING, THE PARTIES FURTHER AGREE THAT THEIR RESPECTIVE RIGHT TO A TRIAL BY JURY IS WAIVED BY OPERATION OF THIS SECTION AS TO ANY ACTION, COUNTERCLAIM OR OTHER PROCEEDING WHICH SEEKS, IN WHOLE OR IN PART, TO
CHALLENGE THE VALIDITY OR ENFORCEABILITY OF THIS AGREEMENT OR THE OTHER LOAN DOCUMENTS OR ANY PROVISION HEREOF OR THEREOF. THIS WAIVER SHALL APPLY TO ANY SUBSEQUENT AMENDMENTS, RENEWALS, SUPPLEMENTS OR MODIFICATIONS TO THIS AGREEMENT AND THE OTHER
LOAN DOCUMENTS. 
  
 15.5 Survival of Representations and
Warranties. All of the Borrower’s representations and warranties contained in this Agreement shall survive the execution, delivery, and acceptance thereof by the parties, notwithstanding any investigation by the Agent or the Lenders or
their respective agents. 
  
 15.6 Other Security and
Guaranties. The Agent, may, without notice or demand and without affecting the Borrower’s obligations hereunder, from time to time: (a) take from any Person and hold collateral for the payment of all or any part of the Obligations and
exchange, enforce or release such collateral or any part thereof; and (b) accept and hold any endorsement or guaranty of payment of all or any part of the Obligations and release or substitute any such endorser or guarantor, or any Person who has
given any Lien in any other collateral as security for the payment of all or any part of the Obligations, or any other Person in any way obligated to pay all or any part of the Obligations. 
  

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 15.7 Fees and Expenses. The Borrower agrees to pay to the Agent, for its benefit, on demand, all
costs and expenses that Agent pays or incurs in connection with the negotiation, preparation, syndication, consummation, administration, enforcement, and termination of this Agreement or any of the other Loan Documents, including: (a) reasonable
Attorney Costs; (b) costs and reasonable expenses (including attorneys’ and paralegals’ fees and disbursements) for any amendment, supplement, waiver, consent, or subsequent closing in connection with the Loan Documents and the
transactions contemplated thereby; (c) costs and reasonable expenses of lien and title searches and title insurance; (d) taxes, fees and other charges for filing financing statements and continuations, and other actions to perfect, protect, and
continue the Agent’s Liens (including costs and reasonable expenses paid or incurred by the Agent in connection with the consummation of Agreement); (e) sums paid or incurred to pay any amount or take any action required of the Borrower under
the Loan Documents that the Borrower fails to pay or take; (f) costs of appraisals, inspections, and verifications of the Collateral, including travel, lodging, and meals for inspections of the Collateral and the Borrower’s operations by the
Agent plus the Agent’s then customary charge for field examinations and audits and the preparation of reports thereof (such charge is currently $750 per day (or portion thereof) for each agent or employee of the Agent with respect to each field
examination or audit); (g) costs and reasonable expenses of forwarding loan proceeds, collecting checks and other items of payment, and establishing and maintaining any blocked accounts and lock boxes; (h) costs and reasonable expenses of preserving
and protecting the Collateral; and (i) costs and reasonable expenses (including attorneys’ and paralegals’ fees and disbursements which shall include the allocated cost of Agent’s in-house counsel fees and disbursements) paid or
incurred to obtain payment of the Obligations, enforce the Agent’s Liens, sell or otherwise realize upon the Collateral, and otherwise enforce the provisions of the Loan Documents, or to defend any claims made or threatened against the Agent
arising out of the transactions contemplated hereby (including preparations for and consultations concerning any such matters). The foregoing shall not be construed to limit any other provisions of the Loan Documents regarding costs and expenses to
be paid by the Borrower. 
  
 15.8 Notices. Except as
otherwise provided herein, all notices, demands and requests that any party is required or elects to give to any other shall be in writing, or by a telecommunications device capable of creating a written record, and any such notice shall become
effective (a) upon personal delivery thereof, including, but not limited to, delivery by overnight mail and courier service, (b) four (4) days after it shall have been mailed by United States mail, first class, certified or registered, with postage
prepaid, or (c) in the case of notice by such a telecommunications device, when properly transmitted, in each case addressed to the party to be notified as follows: 
  

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 If to the Agent: 
  
 General Electric Capital Corporation/Capital Funding Inc. 
 401 Merritt Seven, 2nd Floor 
 Norwalk, Connecticut 06856 
 Attention: Dennis Bickerstaff, Senior Risk Manager 
 Telecopier No.: (203) 229-1928 
 Telephone No.: (203) 229-1989  
  
 and 
  
 General Electric Capital Corporation/Capital Funding, Inc. 
 2400 E. Katella Avenue, Suite 800 
 Anaheim, CA 92806 
 Attention: Nicholas DeCorso 
 Telecopier No.: (714) 456-9411 
 Telephone No.: (714) 456-9403 
  
 If to the Borrower: 
  
 FASL LLC 
 Attention: General Counsel 
 One AMD Place M/S 150 
 P.O. Box 3453 
 Sunnyvale, California 94086 
 U.S.A. 
 Facsimile: (408) 774-7399 
  
 with copies to: 
  
 Advanced Micro Devices, Inc. 
 One AMD Place 
 Mailstop 150 
 Sunnyvale, CA 94088 
 Attention: General Counsel 
  
 or to such other address as each party may
designate for itself by like notice. Failure or delay in delivering copies of any notice, demand, request, consent, approval, declaration or other communication to the persons designated above to receive copies shall not adversely affect the
effectiveness of such notice, demand, request, consent, approval, declaration or other communication. 
  
 15.9 Waiver of Notices. Unless otherwise expressly provided herein, the Borrower waives presentment, protest and notice of demand or dishonor and
protest as to any instrument, notice of intent to accelerate the Obligations and notice of acceleration of the Obligations, as well as any and all other notices to which it might otherwise be entitled. No notice to or demand on the Borrower which
the Agent or any Lender may elect to give shall entitle the Borrower to any or further notice or demand in the same, similar or other circumstances. 
  

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 15.10 Binding Effect. The provisions of this Agreement shall be binding upon and inure to the
benefit of the respective representatives, successors, and assigns of the parties hereto; provided, however, that no interest herein may be assigned by the Borrower without prior written consent of the Agent and each Lender. The rights
and benefits of the Agent and the Lenders hereunder shall, if such Persons so agree, inure to any party acquiring any interest in the Obligations or any part thereof. 
  
 15.11 Indemnity of the Agent-Related Persons and the Lenders by the Borrower. The Borrower agrees to defend,
indemnify and hold the Agent-Related Persons, and each Lender and each of its respective officers, directors, employees, counsel, agents and attorneys-in-fact (each, an “Indemnified Person”) harmless from and against any and all
liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, charges, expenses and disbursements (including reasonable Attorney Costs of counsel mutually acceptable to the Borrower and the applicable Indemnified Person) of
any kind or nature whatsoever which may at any time (including at any time following repayment of the Loans and the termination, resignation or replacement of the Agent or replacement of any Lender) be imposed on, incurred by or asserted against any
such Person in any way relating to or arising out of this Agreement or any document contemplated by or referred to herein, or the transactions contemplated hereby, or any action taken or omitted by any such Person under or in connection with any of
the foregoing, including with respect to any investigation, litigation or proceeding (including any Insolvency Proceeding or appellate proceeding) related to or arising out of this Agreement, any other Loan Document, or the Loans or the use of the
proceeds thereof, whether or not any Indemnified Person is a party thereto (all the foregoing, collectively, the “Indemnified Liabilities”); provided, that the Borrower shall have no obligation hereunder to any Indemnified Person with
respect to Indemnified Liabilities resulting solely from the bad faith, gross negligence or willful misconduct of such Indemnified Person. The agreements in this Section shall survive payment of all other Obligations. 
  
 15.12 Limitation of Liability. No claim may be made by the Borrower,
any Lender or other Person against the Agent, any Lender, or the affiliates, directors, officers, officers, employees, or agents of any of them for any special, indirect, consequential or punitive damages in respect of any claim for breach of
contract or any other theory of liability arising out of or related to the transactions contemplated by this Agreement or any other Loan Document, or any act, omission or event occurring in connection therewith, and the Borrower and each Lender
hereby waive, release and agree not to sue upon any claim for such damages, whether or not accrued and whether or not known or suspected to exist in its favor. 
  

15.13 Final Agreement. This Agreement and the other Loan Documents are intended by the Borrower, the Agent and the Lenders to be the final,
complete, and exclusive expression of the agreement between them. This Agreement and the other Loan Documents supersede any and all prior oral or written agreements relating to the subject matter hereof or thereof. No modification, rescission,
waiver, release, or amendment of any provision of this Agreement or any other Loan Document shall be made, except by a written agreement signed by the Borrower and a duly authorized officer of each of the Agent and the requisite Lenders. 

 

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 15.14 Counterparts. This Agreement may be executed in any number of counterparts, and by the
Agent, each Lender and the Borrower in separate counterparts, each of which shall be an original, but all of which shall together constitute one and the same agreement; signature pages may be detached from multiple separate counterparts and attached
to a single counterpart so that all signature pages are physically attached to the same document. 
  
 15.15 Captions. The captions contained in this Agreement are for convenience of reference only, are without substantive meaning and should not be
construed to modify, enlarge, or restrict any provision. 
  
 15.16
Right of Setoff. In addition to any rights and remedies of the Lenders provided by law, if an Event of Default exists or the Loans have been accelerated, each Lender is authorized at any time and from time to time, without prior notice to the
Borrower, any such notice being waived by the Borrower to the fullest extent permitted by law, to set off and apply any and all deposits (general or special, time or demand, provisional or final) at any time held by, and other indebtedness at any
time owing by, such Lender to or for the credit or the account of the Borrower against any and all Obligations owing to such Lender, now or hereafter existing, irrespective of whether or not the Agent or such Lender shall have made demand under this
Agreement or any Loan Document and although such Obligations may be contingent or unmatured. Each Lender agrees promptly to notify the Borrower and the Agent after any such set-off and application made by such Lender; provided,
however, that the failure to give such notice shall not affect the validity of such set-off and application. 
  
 [Signature pages follow.] 
  

 72 

 IN WITNESS WHEREOF, the parties have entered into this Agreement on the date first above written.

  

	 	  	 “BORROWER”

		
	 	  	 FASL LLC

			
	 	  	 By
	 	 /s/    THOMAS M.
MCCOY

	 	  	 Name:
	 	 Thomas M. McCoy

	 	  	 Title:
	 	 Manager

		
	 	  	 “AGENT”

		
	 	  	GENERAL ELECTRIC CAPITAL
CORPORATION, as the Agent
			
	 	  	 By
	 	 /s/    JAMES H. KAUFMAN

	 	  	 Name:
	 	 James H. Kaufman

	 	  	 Title:
	 	 Senior Risk Manager

		
	 	  	 “LENDERS”

		
	 Existing Term Loans:
	  	 BANK OF AMERICA, N.A., as a Lender

			
	 Commitment: $40,625,000
	  	 	 	 
	 	  	 	 	 
			
	 	  	 By
	 	 /s/    JOHN
MCNAMARA

	 	  	 Name:
	 	 John McNamara 

	 	  	 Title:
	 	 Vice President

		
	 Existing Term Loans:
	  	GENERAL ELECTRIC CAPITAL
CORPORATION, as a Lender
	 Commitment: $40,625,000
	  	 	 	 
			
	 	  	 By
	 	 /s/    JAMES H. KAUFMAN

	 	  	 Name:
	 	 James H. Kaufman

	 	  	 Title:
	 	 Senior Risk Manager

		
	 Existing Term Loans:
	  	 MERRILL LYNCH CAPITAL, a Division of
 Merrill Lynch Business Financial Services Inc., as
 a Lender

	 Commitment: $8,125,000
	  	 	 	 
			
	 	  	 By
	 	 /s/    STEVE COLBY

	 	  	 Name:
	 	 Steve Colby 

	 	  	 Title:
	 	 VP-Group Credit Manager

  

 Signature Page 1 
 to Term Loan AgreementAmended and Restated Limited Liability Company Operating Agreement of FASL LLC

 EXHIBIT 10.52 

  
 AMENDED AND RESTATED 
  
 LIMITED LIABILITY COMPANY 
  
 OPERATING AGREEMENT 
  
 OF 
  
 FASL LLC 
  
 a Delaware Limited Liability Company 
  
 MEMBERSHIP INTERESTS IN FASL LLC, A DELAWARE LIMITED LIABILITY COMPANY, HAVE NOT BEEN REGISTERED WITH OR QUALIFIED BY THE SECURITIES AND EXCHANGE COMMISSION OR ANY
SECURITIES REGULATORY AUTHORITY OF ANY STATE. THE INTERESTS ARE BEING SOLD IN RELIANCE UPON EXEMPTIONS FROM SUCH REGISTRATION OR QUALIFICATION REQUIREMENTS. THE INTERESTS CANNOT BE SOLD, TRANSFERRED, ASSIGNED OR OTHERWISE DISPOSED OF EXCEPT IN
COMPLIANCE WITH THE RESTRICTIONS ON TRANSFERABILITY CONTAINED IN THE AMENDED AND RESTATED LIMITED LIABILITY COMPANY AGREEMENT OF FASL LLC AND APPLICABLE FEDERAL AND STATE SECURITIES LAWS. 
  
 Dated as of June 30, 2003 
  

  

 Confidential treatment has been requested for portions of this exhibit. The copy filed herewith omits the
information subject to the confidentiality request. Omissions are designated as ****. A complete version of the exhibit has been filed separately with the Securities and Exchange Commission. 

 TABLE OF CONTENTS 
  

	 	  	Page

	 
ARTICLE 1. ORGANIZATIONAL MATTERS 
	  	1
			
	 1.1
	  	 
Continuation
	  	1
	 1.2
	  	 
Name
	  	1
	 1.3
	  	 
Principal Place of Business; Other Places of Business
	  	2
	 1.4
	  	 
Business Purpose
	  	2
	 1.5
	  	 
Designated Agent for Service of Process
	  	2
	 1.6
	  	 
Term
	  	2
		
	 
ARTICLE 2. DEFINITIONS
	  	2
		
	 
ARTICLE 3. CAPITAL; CAPITAL ACCOUNTS AND MEMBERS
	  	21
			
	 3.1
	  	 
Initial Capital Contributions of Members
	  	21
	 3.2
	  	 
Additional Capital Contributions by Members
	  	22
	 3.3
	  	 
Capital Accounts
	  	22
	 3.4
	  	 
Member Capital
	  	22
	 3.5
	  	 
Liability of Members
	  	23
		
	 
ARTICLE 4. FINANCING OF THE COMPANY 
	  	23
			
	 4.1
	  	 
Types of Financing
	  	23
	 4.2
	  	 
Allocation of Financing Responsibility During the First 4-Year Period
	  	25
	 4.3
	  	 
Financing Shortfalls
	  	25
	 4.4
	  	 
Operations Shortfalls
	  	28
	 4.5
	  	 
Obligations Outstanding at End of 4-Year Period
	  	28
	 4.6
	  	 
Financing Responsibility After the First 4-Year Period
	  	29
		
	 
ARTICLE 5. DISTRIBUTIONS 
	  	29
			
	 5.1
	  	 
Distributions of Cash Available for Distribution
	  	29
	 5.2
	  	 
Prepayment
	  	33
	 5.3
	  	 
Distributions Upon Liquidation
	  	33
	 5.4
	  	 
Withholding
	  	33
	 5.5
	  	 
Distributions in Kind
	  	34
	 5.6
	  	 
Limitations on Distributions
	  	35
		
	 
ARTICLE 6. ALLOCATIONS OF NET PROFITS AND NET LOSSES 
	  	35
			
	 6.1
	  	 
General Allocation of Net Profits and Losses
	  	35
	 6.2
	  	 
Regulatory Allocations
	  	36

  

 i 
  

 Confidential treatment has been requested for portions of this exhibit. The copy filed herewith omits the
information subject to the confidentiality request. Omissions are designated as ****. A complete version of the exhibit has been filed separately with the Securities and Exchange Commission. 

	 6.3
	  	 
Tax Allocations
	  	37
	 6.4
	  	 
Other Provisions
	  	38
		
	 
ARTICLE 7. MANAGEMENT 
	  	41
			
	 7.1
	  	 
Board of Managers
	  	41
	 7.2
	  	 
Number of Managers; Appointment of Managers
	  	41
	 7.3
	  	 
Effect of Change in Fujitsu Member’s Percentage Interest on Fujitsu Managers
	  	42
	 7.4
	  	 
Effect of Change in AMD Member’s Percentage Interest on AMD Managers
	  	42
	 7.5
	  	 
Chairman of the Board of Managers
	  	43
	 7.6
	  	 
Meetings of Members and of the Board of Managers; Quorum
	  	43
	 7.7
	  	 
Actions Requiring a Special Vote of the Board of Managers
	  	44
	 7.8
	  	 
Limitations on Authority of Board of Managers
	  	47
	 7.9
	  	 
Compensation of Managers
	  	50
	 7.10
	  	 
Accounting; Records and Reports
	  	50
	 7.11
	  	 
Indemnification and Liability of the Managers
	  	52
	 7.12
	  	 
Officers of the Company
	  	54
	 7.13
	  	 
Information Technology Steering Committee
	  	55
	 7.14
	  	 
Personnel
	  	56
	 7.15
	  	 
Human Resources Council
	  	56
	 7.16
	  	 
Stock Option Plan
	  	57
	 7.17
	  	 
Maintenance of Insurance
	  	58
	 7.18
	  	 
Inspections and Proceedings
	  	59
	 7.19
	  	 
Confidential Information
	  	59
	 7.20
	  	 
Other Activities
	  	61
		
	 
ARTICLE 8. OPERATIONS 
	  	61
			
	 8.1
	  	 
4-Year Operations Plan; Annual Budget
	  	61
	 8.2
	  	 
Headquarters
	  	62
	 8.3
	  	 
Wafer Fabrication
	  	62
	 8.4
	  	 
Assembly, Test, Marking and Packaging
	  	62
	 8.5
	  	 
Product Design
	  	62
	 8.6
	  	 
Contracting; Transactions Between Company and Members.
	  	62
	 8.7
	  	 
Access to Company Facilities
	  	63
	 8.8
	  	 
Inventory
	  	63
	 8.9
	  	 
Quarterly Beginning Plan
	  	64
	 8.10
	  	 
Branding
	  	65
	 8.11
	  	 
FASL (Japan)
	  	65
		
	 
ARTICLE 9. DISPOSITION AND TRANSFERS OF INTERESTS 
	  	66
			
	 9.1
	  	 
Holding of Membership Interest
	  	66
	 9.2
	  	 
Transfer Moratorium
	  	66

  

 ii 
  

 Confidential treatment has been requested for portions of this exhibit. The copy filed herewith omits the
information subject to the confidentiality request. Omissions are designated as ****. A complete version of the exhibit has been filed separately with the Securities and Exchange Commission. 

	 9.3
	  	 
Transfers
	  	66
	 9.4
	  	 
Limitation on Number of Valuation Requests
	  	75
	 9.5
	  	 
Further Restrictions on Transfer
	  	75
	 9.6
	  	 
Rights of Assignees
	  	76
	 9.7
	  	 
Admissions and Withdrawals
	  	76
	 9.8
	  	 
Admission of Assignees as Substitute Members
	  	76
	 9.9
	  	 
Withdrawal of Members
	  	77
	 9.10
	  	 
Compliance With IRS Safe Harbor
	  	77
		
	 
ARTICLE 10. DISSOLUTION, LIQUIDATION, AND TERMINATION OF THE COMPANY; EFFECT OF BREACH 
	  	77
			
	 10.1
	  	 
Limitations
	  	77
	 10.2
	  	 
Exclusive Causes
	  	78
	 10.3
	  	 
Effect of Dissolution
	  	78
	 10.4
	  	 
No Capital Contribution Upon Dissolution
	  	78
	 10.5
	  	 
Liquidation
	  	78
	 10.6
	  	 
Effect of Breach of Operations Shortfall Funding Requirement
	  	79
		
	 
ARTICLE 11. AMD GUARANTY 
	  	81
			
	 11.1
	  	 
Guaranty
	  	81
	 11.2
	  	 
AMD Guaranteed Obligations
	  	81
	 11.3
	  	 
Guarantee Absolute and Unconditional
	  	81
	 11.4
	  	 
Reinstatement
	  	82
	 11.5
	  	 
Expenses
	  	83
	 11.6
	  	 
Expiration of Guaranty
	  	83
	 11.7
	  	 
Limits on Guaranty
	  	83
	 11.8
	  	 
Limitation on Claims
	  	83
		
	 
ARTICLE 12. FUJITSU GUARANTY 
	  	84
			
	 12.1
	  	 
Guaranty
	  	84
	 12.2
	  	 
Fujitsu Guaranteed Obligations
	  	84
	 12.3
	  	 
Guarantee Absolute and Unconditional
	  	84
	 12.4
	  	 
Reinstatement
	  	85
	 12.5
	  	 
Expenses
	  	86
	 12.6
	  	 
Expiration of Guaranty
	  	86
	 12.7
	  	 
Limits on Guaranty
	  	86
	 12.8
	  	 
Limitation on Claims
	  	86
		
	 
ARTICLE 13. MISCELLANEOUS 
	  	87
			
	 13.1
	  	 
Amendments
	  	87
	 13.2
	  	 
No Waiver
	  	87
	 13.3
	  	 
Entire Agreement
	  	87

  

 iii 
  

 Confidential treatment has been requested for portions of this exhibit. The copy filed herewith omits the
information subject to the confidentiality request. Omissions are designated as ****. A complete version of the exhibit has been filed separately with the Securities and Exchange Commission. 

	 13.4
	  	 
Further Assurances
	  	88
	 13.5
	  	 
Notices
	  	88
	 13.6
	  	 
Tax Matters
	  	88
	 13.7
	  	 
Governing Law
	  	91
	 13.8
	  	 
Construction; Interpretation
	  	91
	 13.9
	  	 
Rights and Remedies Cumulative
	  	92
	 13.10
	  	 
No Assignment; Binding Effect
	  	92
	 13.11
	  	 
Language
	  	92
	 13.12
	  	 
Severability
	  	92
	 13.13
	  	 
Counterparts
	  	92
	 13.14
	  	 
Dispute Resolution
	  	93
	 13.15
	  	 
Third-Party Beneficiaries
	  	93
	 13.16
	  	 
Specific Performance
	  	93
	 13.17
	  	 
Consequential Damages
	  	93

  
 EXHIBIT &
SCHEDULES 
  

		
	 Exhibit A
	  	 Members, Capital Contributions, and Percentage Interests

		
	 Exhibit B
	  	 Form of Joinder Agreement

		
	 Exhibit C
	  	 4-Year Fixed Financial Support Plan

		
	 Exhibit D
	  	 Form of Pull-In Note

		
	 Exhibit E-1
	  	 Form of Non-Convertible Note

		
	 Exhibit E-2
	  	 Form of Convertible Note

		
	 Exhibit F
	  	 Form of Breach Convertible Note

		
	 Exhibit G-1
	  	 Stock Option Allocation Schedule

		
	 Exhibit G-2
	  	 Stock Option Allocation Schedule

		
	 Schedule A
	  	 Dispute Resolution Procedures

		
	 Schedule B
	  	 Related Party Claim Procedures

  

 iv 
  

 Confidential treatment has been requested for portions of this exhibit. The copy filed herewith omits the
information subject to the confidentiality request. Omissions are designated as ****. A complete version of the exhibit has been filed separately with the Securities and Exchange Commission. 

 AMENDED AND RESTATED 
 LIMITED LIABILITY COMPANY OPERATING AGREEMENT 
 OF 
 FASL LLC 
  
 THIS AMENDED AND RESTATED LIMITED LIABILITY COMPANY OPERATING AGREEMENT (this “Agreement”) is made and entered into as of the 30th
day of June, 2003 (the “Launch Date”), by and between AMD Investments, Inc., a Delaware corporation (“AMD Member”), and Fujitsu Microelectronics Holding, Inc., a Delaware corporation (“Fujitsu
Member”), for the purpose of amending and restating the terms of the Limited Liability Company Operating Agreement dated May 15, 2003 (the “Original Agreement”) of FASL LLC (the “Company”), a limited
liability company organized under the Delaware Limited Liability Company Act, as amended from time to time (the “Act”). In addition, Advanced Micro Devices, Inc., a Delaware corporation (“AMD”), and Fujitsu Limited,
a corporation organized under the laws of Japan (“Fujitsu”), are entering into this Agreement as of the date first set forth above and are parties hereto not in the capacity of Members of the Company but in order to receive the
benefit of and be bound by the applicable provisions hereof. 
  
 
ARTICLE 1. 
 ORGANIZATIONAL MATTERS 
  

	 	
1.1	 	Continuation 

  
 The Company was formed under the Act on April 15, 2003 by filing a Certificate of Formation of the Company (the “Certificate”) in the
Office of the Secretary of State of the State of Delaware as required by the Act. The Members hereby continue the Company under the Act for the purposes and upon the terms and conditions hereinafter set forth and amend and restate the Original
Agreement as set forth herein. AMD Member hereby continues as a Member of the Company, and Fujitsu Member is admitted to the Company as a Member upon its execution of this Agreement. The rights and liabilities of the Members shall be as provided in
the Act, except as otherwise expressly provided herein. In the event of any inconsistency between any terms and conditions contained in this Agreement and any non-mandatory provisions of the Act, the terms and conditions contained in this Agreement
shall govern. If any provision of this Agreement is prohibited or ineffective under the Act, this Agreement will be considered amended to the smallest degree possible in order to make such provision effective under the Act. Subject to the provisions
hereof, the Board of Managers may execute and file, or cause an Officer of the Company to file, any duly authorized amendments to the Certificate from time to time in a form prescribed by the Act. The Board of Managers shall also cause to be made,
on behalf of the Company, such additional filings and recordings as the Board of Managers shall deem necessary or advisable. 
  

	 	
1.2	 	Name 

  
 The name of the Company shall be FASL LLC. The Company may also conduct business at the same time under one or more fictitious names if the Board of Managers determine that such is in the best interests of the
Company. The Board of Managers, including by a Special 

  

 1 
  

 Confidential treatment has been requested for portions of this exhibit. The copy filed herewith omits the
information subject to the confidentiality request. Omissions are designated as ****. A complete version of the exhibit has been filed separately with the Securities and Exchange Commission. 

 
Vote for so long as Fujitsu Member’s Percentage Interest is greater than twenty percent (20%), may change the name of the Company, from time to time, in
accordance with Applicable Law. 
  

	 	
1.3	 	Principal Place of Business; Other Places of Business 

  
 The principal place of business of the Company is located in Sunnyvale, California or may be such other place within or outside the State of Delaware as
the Board of Managers may from time to time designate. The Company may maintain offices and places of business at such other place or places within or outside the State of Delaware, but in all events within the United States, as the Board of
Managers deem advisable. 
  

	 	
1.4	 	Business Purpose 

  
 The purpose of the Company shall be the (a) development, manufacture and sale of semiconductor devices (including single chip or multiple chip products),
a substantial function of which is code and/or data storage; (b) entry into any other lawful business, purpose or activity in which a limited liability company may be engaged under Applicable Law (including, without limitation, the Act) as the
Members may determine from time to time, subject to and in accordance with the terms of this Agreement; and (c) entry into any lawful transaction and engagement in any lawful activities in furtherance of the foregoing purposes and as may be
necessary, incidental or convenient to carry out the business of the Company as contemplated by this Agreement. 
  

	 	
1.5	 	Designated Agent for Service of Process 

  
 The Company shall continuously maintain a registered office and a designated and duly qualified agent for service of process on the Company in the State
of Delaware. As of the date hereof, the address of the registered office of the Company in the State of Delaware is Corporation Trust Company, Corporation Trust Center, 1209 Orange Street, Wilmington, Delaware 19801. 
  

	 	
1.6	 	Term 

  
 The Company shall continue until the Company is terminated, dissolved or liquidated in accordance with this Agreement and the Act. Notwithstanding the dissolution of the Company, the existence of the Company shall
continue until termination pursuant to and as provided in Article 10 of this Agreement. 
  
 
ARTICLE 2. 
 DEFINITIONS 
  
 Capitalized words and phrases used and not otherwise defined elsewhere in this Agreement shall have the following meanings:

  
 “Act” is defined in the preamble.

  

 2 
  

 Confidential treatment has been requested for portions of this exhibit. The copy filed herewith omits the
information subject to the confidentiality request. Omissions are designated as ****. A complete version of the exhibit has been filed separately with the Securities and Exchange Commission. 

 “Adjusted Capital Account Deficit” means, with respect to any Member at any time, the
deficit balance, if any, in such Member’s Capital Account as of such time, after giving effect to the following adjustments: 
  
 (1) Add to such Capital Account the amount that such Member is obligated to restore or is deemed to be obligated to restore pursuant to Regulations
Section 1.704-1(b)(2)(ii)(c) or the penultimate sentence of each of Regulations Sections 1.704-2(g)(1) and 1.704-2(i)(5); and 
  
 (2) Subtract from such Capital Account such Member’s share of the items described in Regulations Sections 1.704-1(b)(2)(ii)(d)(4), (5) and (6).

  
 The foregoing definition of Adjusted Capital Account Deficit is intended to
comply with the provisions of Regulations Section 1.704-1(b)(2)(ii)(d) and shall be interpreted consistently therewith. 
  
 “Adjusted Tax Liability Distribution Amount” shall mean, with respect to each Member and each Fiscal Year, the aggregate amount of the
Tax Liability Distributions made to such Member (during or after such Fiscal Year) with respect to such Fiscal Year (determined without regard to any reduction due to a negative Tax Liability Distribution Adjustment in respect of any prior Fiscal
Year(s)), increased (without duplication) by the amount of a positive Tax Liability Distribution Adjustment or decreased by the amount of a negative Tax Liability Distribution Adjustment, in each case, as determined with respect to such Member for
such Fiscal Year. 
  
 “Affiliate” of a Person
means any other Person which, directly or indirectly, controls, is controlled by, or is under common control with, such Person. The term “control” (including, with correlative meaning, the terms “controlled by” and “under
common control with”), as used with respect to any Person, means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of such Person, whether through the ownership of voting
securities, by contract or otherwise. A Person shall be deemed an Affiliate of another Person only so long as such control relationship exists. The parties acknowledge and agree that neither Fujitsu nor AMD is presently controlled by any other
Person. Notwithstanding the foregoing, a Company Entity shall not be deemed to be an Affiliate of either Fujitsu or AMD, except where expressly provided in this Agreement. 
  
 “Agreement” shall mean this Amended and Restated Limited Liability Company Operating Agreement which shall
constitute the limited liability company agreement of the Company within the meaning of the Act. 
  
 “AMD” is defined in the preamble. 
  
 “AMD Distribution Agreement” means that AMD Distribution Agreement dated as of June 30, 2003 between AMD and the Company. 
  
 “AMD Guaranteed Obligations” is defined in Section 11.1.

  

 3 
  

 Confidential treatment has been requested for portions of this exhibit. The copy filed herewith omits the
information subject to the confidentiality request. Omissions are designated as ****. A complete version of the exhibit has been filed separately with the Securities and Exchange Commission. 

 “AMD Guaranty” is defined in Section 11.1. 
  
 “AMD Initial Contributed Assets” means the AMD Pre-Closing
Contributed Assets (as defined in the Contribution Agreement) and the AMD Closing Date Contributed Assets (as defined in the Contribution Agreement). 
  
 “AMD Manager” means any of the Managers designated by AMD Member to serve on the Board of Managers in accordance with Section 7.2.

  
 “AMD Manager Claim” is defined in Schedule B.

  
 “AMD Member” is defined in the preamble.

  
 “AMD Privileged Material” is defined in
Schedule B. 
  
 “AMD Transaction” is defined in
Section 7.16.2(b). 
  
 “Annual Budget” is defined
in Section 8.1.1. 
  
 “Applicable Law” means,
with respect to a Person, any domestic or foreign, national, federal, territorial, state or local constitution, statute, law (including principles of common law), treaty, ordinance, rule, administrative interpretation, regulation, order, writ,
injunction, legally binding directive, judgment, decree or other requirement or restriction of any arbitrator or Governmental Authority applicable to such Person or any of its Affiliates or any of their respective properties, assets, officers,
directors, employees, consultants or agents (in connection with such officer’s, director’s, employee’s, consultant’s or agent’s activities on behalf of such Person or any of its Affiliates). 
  
 “Assignee” means any Person (a) to whom a Member (or
assignee thereof) Transfers all or any part of its Economic Interest in the Company in accordance with this Agreement, and (b) which has not been admitted to the Company as a Substitute Member pursuant to Section 9.8 of this Agreement. 

 
 “Audit Year” is defined in Section 5.1.1(a). 

 
 “Black-Scholes Value” is defined in Section 7.16.1.

  
 “Board of Managers” means, at any time, the
Board of Managers designated in accordance with Section 7.2. 
  
 “Breach” is defined in Section 10.6. 
  
 “Breach Convertible Note” is defined in Section 10.6.1(b). 
  
 “Breaching Member” is defined in Section 10.6. 
  
 “Breaching Member’s Amount” is defined in Section 10.6.1(b). 
  

 4 
  

 Confidential treatment has been requested for portions of this exhibit. The copy filed herewith omits the
information subject to the confidentiality request. Omissions are designated as ****. A complete version of the exhibit has been filed separately with the Securities and Exchange Commission. 

 “Business” is defined in Section 7.7.2(c). 
  
 “Business Day” means any day other than a day on which
commercial banks in California or Tokyo are required or authorized to be closed. 
  
 “Capex” means any expenditures in respect of the purchase or other acquisition of any fixed or capital asset (excluding normal replacements and maintenance which are properly charged to current
operations in accordance with GAAP), of the Company and each of the other Company Entities, collectively; provided, however, that any such expenditure that is less than five thousand dollars (U.S.$5,000) shall not be included in the
determination of Capex. 
  
 “Capital Account”
means the Capital Account maintained for each Member on the Company’s books and records in accordance with the following provisions: 
  
 (1) To each Member’s Capital Account there shall be added (a) such Member’s Capital Contributions, (b) such Member’s allocable share of Net
Profits and any items in the nature of income or gain that are specially allocated to such Member pursuant to Article 6 hereof or other provisions of this Agreement and (c) the amount of any Company liabilities assumed by such Member or which are
secured by any property distributed to such Member. 
  
 (2) From
each Member’s Capital Account there shall be subtracted (a) the amount of (i) cash and (ii) the Gross Asset Value of any Company Assets (other than cash) distributed to such Member pursuant to any provision of this Agreement in its capacity as
a Member (for the avoidance of doubt, any payment to a Member pursuant to the terms of any Member Debt Financing or other debt instrument, or any payment pursuant to any license, consulting, services, subcontracting, lease or other agreement between
the Company and such Member or any Affiliates of such Member shall not be treated as a “distribution”), (b) such Member’s allocable share of Net Losses and any other items in the nature of expenses or losses that are specially
allocated to such Member pursuant to Article 6 or other provisions of this Agreement, and (c) liabilities of such Member assumed by the Company or which are secured by any property contributed by such Member. 
  
 (3) In the event any Interest in the Company is Transferred in accordance
with the terms of this Agreement, the transferee shall succeed to the Capital Account of the transferor to the extent it relates to the Transferred Interest. 
  
 (4) In determining the amount of any liability for purposes of subsections (1) and (2) of this definition, there shall be taken into account Code Section
752(c) and any other applicable provisions of the Code and Regulations. 
  
 (5) The foregoing provisions and the other provisions of this Agreement relating to the maintenance of Capital Accounts are intended to comply with Regulations Sections 1.704-1(b) and 1.704-2 and shall be interpreted and applied in a manner
consistent with such Regulations. In the event that the Board of Managers shall determine that it is prudent to modify the manner in which the Capital Accounts, or any additions or subtractions thereto, are computed in order to comply with such
Regulations, the Board of Managers may make such 

  

 5 
  

 Confidential treatment has been requested for portions of this exhibit. The copy filed herewith omits the
information subject to the confidentiality request. Omissions are designated as ****. A complete version of the exhibit has been filed separately with the Securities and Exchange Commission. 

 
modification, provided that it is not likely to have a material effect on the amounts distributable to any Member pursuant to Article 10 hereof upon
the dissolution of the Company. The Board of Managers shall also make (a) any adjustments that are necessary or appropriate, in the absence of guidance under applicable Regulations, to maintain equality between the Capital Accounts of the Members
and the amount of Company capital reflected on the Company’s balance sheet, as computed for book purposes, in accordance with Regulations Section 1.704-1(b)(2)(iv)(q), and (b) any appropriate modifications in the event that unanticipated events
might otherwise cause this Agreement not to comply with Regulations Sections 1.704-1(b) and 1.704-2. Upon the conversion of any Convertible Note, the Members’ Capital Accounts shall be adjusted in accordance with the requirements of the Code
and Regulations. 
  
 “Capital Contributions”
means, with respect to any Member, the total amount of cash and the initial Gross Asset Value of property (other than cash) contributed to the capital of the Company by such Member, whether as a Capital Contribution of Contributed Assets or as a
Capital Contribution of other assets. 
  
 “Cash”
means cash and cash equivalents determined by the Company in good faith consistent with GAAP. 
  
 “Certificate” is defined in Section 1.1. 
  
 “Chairman of the Board” is defined in Section 7.5. 
  
 “Change in Control” shall be deemed to have occurred, with respect to AMD or Fujitsu, when: 
  
 (1) Any “person” or “group” (as such terms are used in
Sections 13(d) and 14(d) of the Exchange Act) is or becomes the “beneficial owner” (as defined in Rules 13d-3 and 13d-5 under the Exchange Act) of shares representing more than fifty percent (50%) of the combined voting power of the then
outstanding securities entitled to vote generally in elections of directors of AMD or Fujitsu, as the case may be (the “Voting Stock”); 
  
 (2) AMD or Fujitsu (A) consolidates with or merges into any other Person or any other Person merges into AMD or Fujitsu, and in the case of any such
transaction, the outstanding common stock of AMD or Fujitsu, as the case may be, is changed or exchanged into other assets or securities as a result, unless the stockholders of AMD or Fujitsu, as the case may be, immediately before such transaction
own, directly or indirectly immediately following such transaction, more than fifty percent (50%) of the combined voting power of the outstanding voting securities of the corporation resulting from such transaction in substantially the same
proportion as their ownership of the Voting Stock immediately before such transaction, or (B) conveys, transfers or leases all or substantially all of its assets to any Person; or 
  
 (3) Any time Continuing Directors do not constitute a majority of the Board of Directors of AMD or Fujitsu, as the case may
be (or, if applicable, a successor Person to AMD or Fujitsu, as the case may be). 
  

 6 
  

 Confidential treatment has been requested for portions of this exhibit. The copy filed herewith omits the
information subject to the confidentiality request. Omissions are designated as ****. A complete version of the exhibit has been filed separately with the Securities and Exchange Commission. 

 “Chief Executive Officer” is defined in Section 7.12.1. 
  
 “Chief Financial Officer” is defined in Section 7.12.3.

  
 “Code” means the Internal Revenue Code of
1986, as amended from time to time (or any corresponding provisions of succeeding law). 
  
 “Company” is defined in the preamble. 
  
 “Company Accountant” shall mean initially Ernst & Young LLP or such other independent accounting firm as appointed from time to time by the Board of Managers. 
  
 “Company Assets” means all direct and indirect rights and
interests in real and personal property owned by the Company from time to time, and shall include both tangible and intangible property (including Cash). 
  
 “Company Correlative Item” is defined in Section 6.4.4(b). 
  
 “Company Entity” means the Company, or any of its directly or indirectly majority owned subsidiaries
(whether organized as corporations, limited liability companies or other legal entity). 
  
 “Company Minimum Gain” has the meaning set forth in Regulations Sections 1.704-2(b)(2) and 1.704-2(d)(1) for the phrase “partnership minimum gain.” 
  
 “Company Section 482 Allocation” is defined in Section
6.4.4(a). 
  
 “Company Transaction” is defined in
Section 7.16.2(a). 
  
 “Confidential Information”
is defined in Section 7.19.1 
  
 “Continuing
Director” means, solely with respect to AMD or Fujitsu, at any date, a member of AMD’s or Fujitsu’s Board of Directors, as the case may be, (i) who was a member of such board on June 30, 2003 or (ii) who was nominated or elected
by at least a majority of the directors who were Continuing Directors at the time of such nomination or election or whose election to the such board was recommended or endorsed by at least a majority of the directors who were Continuing Directors at
the time of such nomination or election or such lesser number comprising a majority of a nominating committee comprised of independent directors if authority for such nominations or elections has been delegated to a nominating committee whose
authority and composition have been approved by at least a majority of the directors who were Continuing Directors at the time such committee was formed. 
  
 “Contributed Assets” means the AMD Contributed Assets and the Fujitsu Contributed Assets as such terms are defined in the Contribution
Agreement. 
  
 “Contribution Agreement” means the
Contribution and Assumption Agreement dated as of June 30, 2003 among the Company, AMD and Fujitsu. 
  

 7 
  

 Confidential treatment has been requested for portions of this exhibit. The copy filed herewith omits the
information subject to the confidentiality request. Omissions are designated as ****. A complete version of the exhibit has been filed separately with the Securities and Exchange Commission. 

 “Convertible Note” is defined in Section 4.3.2(d). 
  
 “Conversion Eligibility Date” is defined in Section
4.3.2(d). 
  
 “Core Business” is defined in
Section 7.8.1(b). 
  
 “Curative Distribution”
shall mean an amount, which shall be determined with respect to each Fiscal Year of the Company and which shall be payable to one of the Members in accordance with Section 5.1.1(b). The amount of the Company’s Curative Distribution for any
Fiscal Year shall mean the additional amount necessary to distribute to one of the Members in order that the Adjusted Tax Liability Distribution Amount made to one of the Members in respect of such Fiscal Year and the sum of the Adjusted Tax
Liability Distribution Amount and the Curative Distribution made to the other Member in respect of such Fiscal Year shall be in the same ratio as the Members’ respective Percentage Interests for such Fiscal Year (the “Target
Ratio”); provided, however, that if the Members’ respective Percentage Interests vary during such Fiscal Year, the Target Ratio for such Fiscal Year shall mean the ratio of the Members’ respective “book” items (within
the meaning of Code Section 704(b)) corresponding to the tax items in respect of which the Tax Liability Distribution was made. 
  
 “Cure Period” means, with respect to a Breach, a period of one hundred (100) days starting from the date such Breach occurs, during which
the Breaching Member shall have the right to cure the Breach by either funding its Breaching Member’s Amount (plus reasonable interest thereon) or by purchasing the Breach Convertible Note from the Non-Breaching Member at a price equal to the
principal, interest and any other amounts outstanding thereunder (and, upon such a purchase, the Breach Convertible Note shall cease to be convertible); provided, however, that each Breaching Member shall have the right so to cure its Breaches two
(2) times, and after the second such cure of a Breach, the Cure Period shall no longer apply with respect to any Breach by such Non-Breaching Member. For the avoidance of doubt, the curing of multiple Breaches at any one (1) time shall only
constitute one (1) exercise of the right to cure. 
  
 “DCF
Valuation” is defined in Section 9.3.1. 
  
 “Depreciation” means, for each Fiscal Year of the Company or other period, an amount equal to the federal income tax depreciation, amortization or other cost recovery deduction allowable with respect to an asset for such
year or other period, except that if the Gross Asset Value of an asset differs from its adjusted basis for federal income tax purposes at the beginning of such year or other period, Depreciation shall be an amount that bears the same ratio to such
beginning Gross Asset Value as the federal income tax depreciation, amortization or other cost recovery deduction for such year or other period bears to such beginning adjusted tax basis; provided, however, that if the federal income tax
depreciation, amortization or other cost recovery deduction for such year or other period is zero, Depreciation shall be determined with reference to such beginning Gross Asset Value using any reasonable method selected by the Board of Managers.

  
 “DGCL” means the General Corporation Law of
Delaware, as amended. 
  

 8 
  

 Confidential treatment has been requested for portions of this exhibit. The copy filed herewith omits the
information subject to the confidentiality request. Omissions are designated as ****. A complete version of the exhibit has been filed separately with the Securities and Exchange Commission. 

 “Disclosing Party” is defined in Section 7.19.1. 
  
 “Discounted Black-Scholes Value” is defined in Section
7.16.1. 
  
 “Distribution Agreements” is defined
in Section 8.9. 
  
 “Distributor” means either
AMD in its capacity as a distributor of Products under the AMD Distribution Agreement or Fujitsu in its capacity as a distributor of Products under the Fujitsu Distribution Agreement, as applicable. 
  
 “Economic Interest” means a Person’s right to share in
allocations of Net Profits, Net Losses and other items of income, gains, losses, deductions and credits hereunder and to receive distributions from, the Company as set forth in this Agreement, but does not include any other rights of a Member
including, without limitation, the right to vote or to participate in the management of the Company, or, except as specifically provided in this Agreement or required under the Act, any right to information concerning the business and affairs of the
Company. 
  
 “Excess Allocation” is defined in
Section 5.1.4. 
  
 “Exchange Act” means the
Securities Exchange Act of 1934, as amended. 
  
 “Executive Officers” means all Officers directly reporting to the Chief Executive Officer. 
  
 “FASL (Japan)” means Fujitsu AMD Semiconductor Limited, a corporation organized under the laws of Japan, and, following the consummation
of the transactions contemplated by the Contribution Agreement, a wholly owned subsidiary of the Company that will have its name changed to FASL JAPAN Limited. 
  

“FASL (Japan) Non-Manufacturing Organization” means the formal or informal group, division or other organization within FASL (Japan)
primarily conducting research and development of semi-conductor products (as well as related marketing and administrative activities) which, as of the Launch Date will operate at leased facilities located in Tokyo and Nagoya. 
  
 “Final Bid End-Date” is defined in Section 9.3.9(d).

  
 “Financing Note” is defined in Section 9.3.8.

  
 “Financing Shortfall” is defined in Section
4.3.1. 
  
 “Financing Shortfall Amount” is
defined in Section 4.3.1. 
  
 “Financing Shortfall
Notes” is defined in Section 4.3.2(d). 
  
 “Fiscal Year” is defined in Section 7.10.1. 
  

 9 
  

 Confidential treatment has been requested for portions of this exhibit. The copy filed herewith omits the
information subject to the confidentiality request. Omissions are designated as ****. A complete version of the exhibit has been filed separately with the Securities and Exchange Commission. 

 “FMM” means Fujitsu Microelectronics (Malaysia) Sdn. Bhd. 
  
 “4-Year Fixed Financial Support Plan” means the first
sixteen (16) quarters of the plan attached hereto as Exhibit C. In the event that the Launch Date is delayed for any reason beyond the fiscal quarter of the calendar year that is the first quarter of the 4-Year Fixed Financial Support
Plan as set forth on Exhibit C, the dates on the 4-Year Fixed Financial Support Plan will be adjusted so that such first quarter thereof will be the fiscal quarter in which the Launch Date falls (but, for the avoidance of doubt, the
amounts contained therein will not change). 
  
 “4-Year
Operations Plan” is defined in Section 8.1.1. 
  
 “4-Year Period” means the four (4)-year period covered in the 4-Year Fixed Financial Support Plan. 
  
 “Fujitsu” is defined in the preamble. 
  
 “Fujitsu Distribution Agreement” means that Fujitsu Distribution Agreement dated as of June 30, 2003 between Fujitsu and the Company.

  
 “Fujitsu Guaranteed Obligations” is defined
in Section 12.1. 
  
 “Fujitsu Guaranty” is
defined in Section 12.1. 
  
 “Fujitsu Manager”
means any of the Managers designated by Fujitsu to serve on the Board of Managers in accordance with Section 7.2. 
  
 “Fujitsu Manager Claim” is defined in Schedule B. 
  
 “Fujitsu Member” is defined in the preamble. 
  
 “Fujitsu Privileged Material” is defined in Schedule B. 
  
 “Funding Member” means a Member that provides financing for
(i) Pull-Ins pursuant to and in accordance with Section 4.3.2(c), or (ii) Financing Shortfalls pursuant to and in accordance with Section 4.3.2(d), as applicable. 
  
 “Funding Member Pull-In Note” is defined in Section 4.3.2(c). 
  
 “G&A” means the general and administrative expenses
(including any fees paid to Persons that are not Company Entities in respect of general and administrative activities performed for the benefit of any Company Entity) of the Company and the other Company Entities, collectively, computed in
accordance with GAAP. 
  
 “GAAP” means generally
accepted accounting principles in the United States, consistently applied. 
  

 10 
  

 Confidential treatment has been requested for portions of this exhibit. The copy filed herewith omits the
information subject to the confidentiality request. Omissions are designated as ****. A complete version of the exhibit has been filed separately with the Securities and Exchange Commission. 

 “Governmental Authority” means any foreign, domestic, national, federal, territorial,
state or local governmental authority, quasi-governmental authority, instrumentality, court, government or self-regulatory organization, commission, tribunal or organization or any regulatory, administrative or other agency, or any political or
other subdivision, department or branch of any of the foregoing. 
  
 “Gross Asset Value” means, with respect to any asset, the asset’s adjusted basis for federal income tax purposes, except as follows: 
  
 (1) The initial Gross Asset Value of the assets contributed to the Company by AMD Member and Fujitsu Member in connection
with the contribution of the Contributed Assets shall be the gross fair market value of such assets, which the parties agree is equal to the book value of such Contributed Assets as determined in accordance with GAAP and shall be set forth on
Exhibit A as soon as practicable after the Launch Date. The initial Gross Asset Value of any asset contributed by a Member to the Company that is not a Contributed Asset shall be the gross fair market value of such asset as determined
by the Board of Managers and the contributing Member. 
  
 (2) The
Gross Asset Value of all Company Assets immediately prior to the occurrence of any event described in subsections (a) through (d) hereof shall be adjusted to equal their respective gross fair market values, in accordance with the applicable
valuation provisions of this Agreement, or if there are no such provisions, as determined by the Board of Managers using such reasonable method of valuation as the Board of Managers may adopt, upon the occurrence of the following events and in
accordance with the applicable Regulations: 
  
 (a) the
acquisition of an additional Interest in the Company (other than in connection with the execution of this Agreement) by a new or existing Member in exchange for more than a de minimis Capital Contribution (including the acquisition of an additional
Interest by an existing Member upon conversion of a Convertible Note in accordance with Section 4.3.2(d)), if the Board of Managers reasonably determines that such adjustment is necessary or appropriate to reflect the relative Economic Interests of
the Members in the Company; 
  
 (b) the distribution by the
Company to a Member of more than a de minimis amount of Company Assets as consideration for an Economic Interest or Interest in the Company, if the Board of Managers reasonably determines that such adjustment is necessary or appropriate to reflect
the relative Economic Interests of the Members in the Company; 
  
 (c) the liquidation of the Company within the meaning of Regulations Section 1.704-1(b)(2)(ii)(g); and 
  
 (d) at such other times as the Board of Managers shall reasonably determine necessary or advisable in order to comply with Regulations Sections
1.704-1(b) and 1.704-2. 
  

 11 
  

 Confidential treatment has been requested for portions of this exhibit. The copy filed herewith omits the
information subject to the confidentiality request. Omissions are designated as ****. A complete version of the exhibit has been filed separately with the Securities and Exchange Commission. 

 (3) The Gross Asset Value of any Company Asset distributed to a Member shall be the gross fair market
value of such Company Asset on the date of distribution as determined by the Board of Managers. 
  
 (4) The Gross Asset Values of Company Assets shall be increased (or decreased) to reflect any adjustments to the adjusted basis of such Company Assets
pursuant to Code Section 734(b) or Code Section 743(b), but only to the extent that such adjustments are taken into account in determining Capital Accounts pursuant to Regulations Section 1.704-1(b)(2)(iv)(m); provided, however, that Gross
Asset Values shall not be adjusted pursuant to this subsection (4) of this definition to the extent that the Board of Managers reasonably determines that an adjustment pursuant to subsection (2) of this definition above is necessary or appropriate
in connection with a transaction that would otherwise result in an adjustment pursuant to this subsection (4) of this definition. 
  
 (5) If the Gross Asset Value of a Company Asset has been determined or adjusted pursuant to subsections (1), (2) or (4) of this definition, such Gross
Asset Value shall thereafter be adjusted by the Depreciation taken into account with respect to such Company Asset for purposes of computing Net Profits and Net Losses. 
  
 “Guaranteed Percentage” is defined in Section 4.1.2(a). 
  
 “HR Council” is defined in Section 7.15. 
  
 “Indemnified Loss” is defined in Section 7.11.1. 

 
 “Indemnitee” is defined in Section 7.11.1. 
  
 “Initial Bid End-Date” is defined in Section 9.3.9(c).

  
 “Initial Public Offering” means a bona fide
underwritten initial sale of common stock (or other securities) of a Person pursuant to a registration statement that is declared effective by the SEC. 
  
 “Investment Advisers Act” means the Investment Advisers Act of 1940, as amended. 
  
 “Investment Company Act” means the Investment Company Act of
1940, as amended. 
  
 “IP Contribution Agreement”
means the Intellectual Property Contribution and Ancillary Matters Agreement dated as of June 30, 2003 among Fujitsu, AMD and the Company. 
  
 “IPO Valuation” means the Valuation described in Section 9.3.1. 
  
 “IT” is defined in Section 7.13. 
  
 “IT Steering Committee” is defined in Section 7.13. 
  

 12 
  

 Confidential treatment has been requested for portions of this exhibit. The copy filed herewith omits the
information subject to the confidentiality request. Omissions are designated as ****. A complete version of the exhibit has been filed separately with the Securities and Exchange Commission. 

 “Joint Territory” has the meaning set forth in the AMD Distribution Agreement and in the
Fujitsu Distribution Agreement. 
  
 “JV1” means
the wafer fabrication facility currently for 0.35 micron products located at Industrial Site 6, Monden-machi, Aizuwakamatsu-shi, Fukushima, Japan. 
  
 “JV2” means the wafer fabrication facility currently for 0.23 micron products located at Industrial Site 6, Monden-machi,
Aizuwakamatsu-shi, Fukushima, Japan. 
  
 “JV3”
means the wafer fabrication facility currently for 0.18 micron and 0.13 micron products located at Industrial Site 2, Takaku, Aizuwakamatsu-shi, Fukushima, Japan. 
  
 “Launch Date” is defined in the preamble. 
  
 “Liquidators” is defined in Section 10.5.1. 
  
 “Managers” means at any time the individuals elected in accordance with Section 7.2 to serve on the Board
of Managers. 
  
 “Material Breach” means a Breach
of greater than seventy-five million dollars (U.S.$75,000,000) in any one occurrence or which, together with all previous Breaches by the applicable Member, exceeds seventy-five million dollars (U.S.$75,000,000) in the aggregate. 
  
 “Material Company Entity” means the Company and each Company
Entity that owns (directly or indirectly) greater than twenty percent (20%) of the fair market value of the assets of the Company Entities taken as a whole. 
  
 “Member” means a Person owning a Membership Interest, including any Substitute Member. 
  
 “Member Correlative Item” is defined in Section 6.4.4(a).

  
 “Member Debt Financing” means a loan to the
Company directly from a Member or any of its Affiliates. 
  
 “Member Guarantee” means a guarantee by a Member or its Affiliates issued to a Person other than a Member or its Affiliates guaranteeing any lease or debt financing provided to a Company Entity by such Person. 

 
 “Member Guaranteed Financing” means any lease or debt
financing from a Person other than a Member or its Affiliates that is guaranteed by a Member Guarantee. 
  
 “Member Minimum Gain” means “partner nonrecourse debt minimum gain” as defined in Regulations Section 1.704-2(i)(2).

  
 “Member Nonrecourse Debt” means “partner
nonrecourse debt” as set forth in Regulations Section 1.704-2(b)(4). 
  

 13 
  

 Confidential treatment has been requested for portions of this exhibit. The copy filed herewith omits the
information subject to the confidentiality request. Omissions are designated as ****. A complete version of the exhibit has been filed separately with the Securities and Exchange Commission. 

 “Member Section 482 Allocation” is defined in Section 6.4.4(b). 
  
 “Member Nonrecourse Deductions” means “partner
nonrecourse deductions” as set forth in Regulations Section 1.704-2(i). 
  
 “Membership Interest” or “Interest” means the entire ownership interest of a Member in the Company at any particular time, including without limitation, the Member’s Economic
Interest, any and all rights to vote and otherwise participate in the Company’s affairs, and the rights to any and all benefits to which a Member may be entitled as provided in this Agreement, together with the obligations of such Member to
comply with all of the terms and provisions of this Agreement. A Membership Interest may be expressed as a number of Units. 
  
 “Net Profits” or “Net Losses” means, for each Fiscal Year or other period, an amount equal to the Company’s taxable
income or loss for such year or period determined in accordance with Code Section 703(a) (for this purpose, all items of income, gain, loss or deduction required to be stated separately pursuant to Code Section 703(a)(1) shall be included in taxable
income or loss), with the following adjustments: 
  
 (1) Any
income of the Company that is exempt from federal income tax and not otherwise taken into account in computing Net Profits or Net Losses pursuant to this definition shall be added to such taxable income or loss; 
  
 (2) Any expenditure of the Company described in Code Section 705(a)(2)(B) or
treated as a Code Section 705(a)(2)(B) expenditure pursuant to Regulations Section 1.704-1(b)(2)(iv)(i), and not otherwise taken into account in computing Net Profits or Net Losses pursuant to this subsection (2) of this definition, shall be
subtracted from such taxable income or loss; 
  
 (3) Gain or loss
resulting from any disposition of Company Assets where such gain or loss is recognized for federal income tax purposes shall be computed by reference to the Gross Asset Value of the Company Assets disposed of, notwithstanding that the adjusted tax
basis of such Company Assets differs from its Gross Asset Value; 
  
 (4) In lieu of the depreciation, amortization and other cost recovery deductions taken into account in computing such taxable income or loss, there shall be taken into account Depreciation for such Fiscal Year; 
  
 (5) To the extent an adjustment to the adjusted tax basis of any asset
included in Company Assets pursuant to Code Section 734(b) or Code Section 743(b) is required pursuant to Regulations Section 1.704-1(b)(2)(iv)(m)(4) to be taken into account in determining Capital Accounts as a result of a distribution other than
in liquidation of a Member’s Interest, the amount of such adjustment shall be treated as an item of gain (if the adjustment increases the basis of the asset) or loss (if the adjustment decreases the basis of the asset) from the disposition of
the asset and shall be taken into account for the purposes of computing Net Profits and Net Losses; 
  

 14 
  

 Confidential treatment has been requested for portions of this exhibit. The copy filed herewith omits the
information subject to the confidentiality request. Omissions are designated as ****. A complete version of the exhibit has been filed separately with the Securities and Exchange Commission. 

 (6) If the Gross Asset Value of any Company Asset is adjusted in accordance with subsection (2) or
subsection (3) of the definition of “Gross Asset Value,” the amount of such adjustment shall be taken into account in the taxable year of such adjustment as gain or loss from the disposition of such asset for purposes of computing Net
Profits or Net Losses; and 
  
 (7) Notwithstanding any other
provision of this definition, any items of income, gain, loss or deduction that are specially allocated pursuant to Sections 6.2, 6.4.4 and 6.4.6 shall not be taken into account in computing Net Profits or Net Losses. The amount of items of income,
gain, loss and deduction available to be specially allocated shall be determined using principles analogous to those set forth in this definition. 
  
 The Members acknowledge and agree that for financial accounting purposes the results of the Company’s operations will be reported in accordance with
GAAP and that Net Profits, Net Losses, and the items taken into account in determining Net Profits and Net Losses, for any Fiscal Year shall be taken into account for financial accounting purposes only if, when and to the extent required or
permitted to be taken into account in accordance with GAAP and that GAAP may require or permit that other items be taken into account. 
  
 “Non-Breaching Member” is defined in Section 10.6. 
  
 “Non-Breaching Member’s Amount” is defined in Section 10.6.1(a). 
  
 “Non-Competition Agreement” means the Non-Competition
Agreement dated as of June 30, 2003 among the Company, AMD and Fujitsu. 
  
 “Non-Convertible Note” is defined in Section 4.3.2(d). 
  
 “Non-Funding Member” means a Member that does not provide financing for (i) Pull-Ins in accordance with Section 4.3.2(c) or (ii) Financing Shortfalls in accordance with Section 4.3.2(d), as
applicable. 
  
 “Non-Funding Member Pull-In Note”
is defined in Section 4.3.2(c). 
  
 “Nonrecourse
Deductions” has the meaning set forth in Regulations Sections 1.704-2(b)(1) and 1.704-2(c). 
  
 “Offer Commencement Date” is defined in Section 9.3.9(b). 
  
 “Offer Notice” is defined in Section 9.3.5. 
  
 “Officer” is defined in Section 7.12.3. 
  
 “Operations Shortfall” occurs either (a) when the Projected Ending Cash Balance for any fiscal quarter is
less than one hundred million dollars (U.S.$100,000,000), or (b) in the event that the Projected Ending Cash Balance for any fiscal quarter is greater than one hundred million dollars (U.S.$100,000,000), when the Company reasonably expects that Cash
will be reduced to zero dollars (U.S.$0) at any time during such quarter. 
  

 15 
  

 Confidential treatment has been requested for portions of this exhibit. The copy filed herewith omits the
information subject to the confidentiality request. Omissions are designated as ****. A complete version of the exhibit has been filed separately with the Securities and Exchange Commission. 

 “Operations Shortfall Amount” is either (a) in the event that an Operations Shortfall
occurs under clause (a) of the definition thereof with respect to any given fiscal quarter, the amount by which the Projected Ending Cash Balance determined pursuant to Section 4.4.1 for such quarter is less than one hundred million dollars
(U.S.$100,000,000), or (b) in the event that an Operations Shortfall occurs under clause (b) of the definition thereof with respect to any given fiscal quarter, the amount reasonably expected to be necessary to maintain a balance of Cash in excess
of zero dollars (U.S.$0) for the rest of such quarter. 
  
 “Original Agreement” is defined in the preamble. 
  
 “Parent Forecasts” is defined in Section 8.9.2. 
  
 “Participate” shall include (a) participation in conferences, meetings or Proceedings with any Governmental Authority, the subject matter
of which includes an item for which a Member may have liability pursuant to Article X of the Contribution Agreement, (b) participation in appearances before any court or tribunal, the subject matter of which includes an item for which a party may
have liability pursuant to Article X of the Contribution Agreement, and (c) with respect to matters described in the preceding clauses (a) and (b), participation in the submission and determination of the content of the documentation, protests,
memoranda of fact and law, and briefs, and the conduct of oral arguments and presentations. 
  
 “Percentage Interest” means, with respect to a Member holding one or more Units, its Interest in the Company as determined by dividing the number of Units owned by such Member by the total number of
Units of the Company then outstanding as specified in Exhibit A attached hereto, as such exhibit may be modified or supplemented from time to time in accordance with the terms of this Agreement. 
  
 “Percentage Sold” is defined in Section 9.3.8(c).

  
 “Person” means any person or entity, whether
an individual, trustee, corporation, partnership, limited partnership, limited liability company, trust, unincorporated organization, business association, firm, joint venture, other legal entity or Governmental Authority. 
  
 “Potential Acquirers” is defined in Section 9.3.9(a).

  
 “Proceeding” means actions, suits, hearings,
arbitrations, proceedings (public or private), investigations, examinations, audits or claims brought by or against any Governmental Authority. 
  
 “Products” is defined in the AMD Distribution Agreement and the Fujitsu Distribution Agreement. 
  
 “Projected Ending Cash Balance” means the Company’s
projected ending balance of Cash (on a consolidated basis) determined by the Company for any given fiscal quarter, calculated using the Company’s then-current Rolling Quarterly Plan and related cash flow statements, each prepared in a manner
consistent with the Company’s other financial 

  

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information subject to the confidentiality request. Omissions are designated as ****. A complete version of the exhibit has been filed separately with the Securities and Exchange Commission. 

 
statements and GAAP, provided that, with respect to determining an Operations Shortfall, such calculation of the projected ending balance will (i)
exclude principal payments made by the Company with respect to any debt incurred to cover Financing Shortfalls and, for the avoidance of doubt, the amount of such payments shall be deemed to be included in such projected ending balance of Cash, and
(ii) include distributions made or to be made pursuant to Sections 5.1.1(a), 5.1.1(b) and 5.1.1(c) (without regard to any limitations therein based on inadequacy of available cash). 
  
 “Public Offering” is defined in Section 9.3.10. 
  
 “Pull-In Note” is defined in Section 4.3.2(c). 

 
 “Pull-Ins” is defined in Section 4.3.2(c). 
  
 “Qualified Valuator” means a reputable, nationally
recognized investment bank, accounting firm or valuation specialist that is not (a) an Affiliate of a Member or of an Affiliate of a Member or (b) an Affiliate of any Company Entity or of an Affiliate of any Company Entity. 
  
 “Quarterly Beginning Plan” or “QBP” is
defined in Section 8.9. 
  
 “Quarterly Beginning Plan
Template” or “QBP Template” is defined in Section 8.9.1. 
  
 “R&D” means expenditures in respect of research and development activities (including any fees paid to any Persons that are not Company Entities in respect of research and development activities
performed for the benefit of any Company Entity) of or by the Company and each of the other Company Entities, collectively, computed in accordance with GAAP. 
  
 “Receiving Party” is defined in Section 7.19.1. 
  

“Reference Rate” is defined in the definition of “Tax Distribution Rate.” 
  
 “register,” “registered,” and
“registration,” as those terms are used in Section 9.3.10, refer to a registration effected by preparing and filing a registration statement or similar document in compliance with the Securities Act, and the declaration or ordering
of effectiveness of such registration statement or document. 
  
 “Regulations” means temporary and final Treasury Regulations promulgated under the Code, as such regulations may be amended from time to time (including corresponding provisions of succeeding Treasury Regulations).

  
 “Regulatory Allocations” is defined in
Section 6.2.8. 
  
 “Responsible Party” is defined
in Section 7.11.6. 
  
 “Revolver” means the
revolving bank credit facility of up to one hundred fifty million dollars (U.S.$150,000,000) that is guaranteed on a pro rata basis by AMD and Fujitsu 

  

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 Confidential treatment has been requested for portions of this exhibit. The copy filed herewith omits the
information subject to the confidentiality request. Omissions are designated as ****. A complete version of the exhibit has been filed separately with the Securities and Exchange Commission. 

 
based on the respective Percentage Interests of their respective Affiliate Members at the time the bank facility is established. 
  
 “Right of First Refusal” is defined in Section 9.3.6.

  
 “Rolling Quarterly Plan” is defined in
Section 8.1.1. 
  
 “Safe Harbors” is defined in
Section 9.10. 
  
 “Sale End-Date” is defined in
Section 9.3.9(e). 
  
 “SEC” means the Securities
and Exchange Commission. 
  
 “Secondment
Agreement” means that Secondment and Transfer Agreement dated as of June 30, 2003 by and between FASL (Japan) and Fujitsu. 
  
 “Secretary” is defined in Section 7.12.3. 
  
 “Securities Act” means the Securities Act of 1933, as amended. 
  
 “Selling Members” is defined in Section 9.3.10(b). 
  
 “Special Vote of the Board of Managers” or “Special
Vote” means the affirmative vote or consent of the Board of Managers, including the affirmative vote of at least fifty percent (50%) of then Fujitsu Managers for so long as Fujitsu Managers are on the Board of Managers. 
  
 “Substitute Member” means any Person (a) to whom a Member
(or Assignee thereof) Transfers all or any part of its Interest in the Company, and (b) which has been admitted to the Company as a Substitute Member pursuant to Section 9.8. 
  
 “Target” is defined in Section 8.8. 
  
 “Target Ratio” is defined in the definition of “Curative Distribution.” 
  
 “Tax” or “Taxes” means all taxes, levies,
imposts and fees imposed by any Governmental Authority (domestic or foreign) of any nature including but not limited to federal, state, local or foreign net income tax, alternative or add-on minimum tax, profits or excess profits tax, franchise tax,
gross income, adjusted gross income or gross receipts tax, employment related tax (including employee withholding or employer payroll tax, FICA or FUTA), real or personal property tax or ad valorem tax, sales or use tax, excise tax, stamp tax or
duty, any withholding or back up withholding tax, value added tax, severance tax, prohibited transaction tax, premiums tax, occupation tax, together with any interest or any penalty, addition to tax or additional amount imposed by any Governmental
Authority (domestic or foreign) responsible for the imposition of any such tax. 
  

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information subject to the confidentiality request. Omissions are designated as ****. A complete version of the exhibit has been filed separately with the Securities and Exchange Commission. 

 “Tax Distribution Rate” shall mean thirty-six percent (36%); provided that (i) such
thirty-six percent (36%) rate shall be adjusted upward or downward from time to time if the top-bracket U.S. federal income tax rate applicable to ordinary income of corporations (the “Reference Rate”) is changed after the date
hereof so that the Tax Distribution Rate shall at all times be equal to one (1) percentage point more than the Reference Rate; and (ii) notwithstanding anything else in this definition, if the activities of the Company shall give rise to state tax
liability for the Members in any State of the United States other than California and Texas, the Members shall negotiate in good faith to agree on an appropriate adjustment in respect of such increased tax liability. The Members intend that if the
Reference Rate is ever changed such that a blended rate applies to a Member in respect of a taxable year of such Member, the Tax Distribution Rate in respect of such Member for such taxable year shall be equal to one (1) percentage point more than
such blended rate. 
  
 “Tax Liability
Distributions” shall refer to any distribution made to a Member pursuant to Section 5.1.1(a). All Tax Liability Distributions shall be made in cash. The table below sets forth the correspondence between the Tax Liability Distributions made
by the Company to the Members with respect to their respective estimated and final tax payments and the related Fiscal Year of the Company. References in the table to “year x” refer to any calendar year, and references to “year x +
1” refer to the subsequent calendar year. In the event the taxable year of the Company no longer corresponds to that of the AMD Member, the table shall be appropriately adjusted. Tax Liability Distributions made to a Member with respect to a
particular Fiscal Year of the Company shall also include distributions of any positive Tax Liability Distribution Adjustment made to a Member with respect to such Fiscal Year. Tax Liability Distributions with respect to any Fiscal Year will be
reduced by the amount of any negative Tax Liability Distribution Adjustment with respect to a prior Fiscal Year (but only to the extent that any such negative Tax Liability Distribution Adjustment has not been previously applied as a reduction
pursuant to this sentence). 
  

	 Tax Liability
 Distributions of
 Fujitsu Member in
 Respect of:

	 	 Fiscal Year of
 Company (ends the
 last Sunday in
 December, year x)

	 	 Tax Liability
 Distributions of
 AMD Member in
 respect of:

	 	 Fiscal Year of
 Company (ends
 the last Sunday in
 December, year x)

	First quarter estimated (payable July 15, year x)	 	Fiscal Year ending in year x	 	First quarter estimated (payable April 15, year x)	 	Fiscal Year ending in year x
				
	Second quarter estimated (payable September 15, year x)	 	Fiscal Year ending in year x	 	Second quarter estimated (payable June 15, year x)	 	Fiscal Year ending in year x
				
	Third quarter estimated (payable December 15, year x)	 	Fiscal Year ending in year x	 	Third quarter estimated (payable September 15, year x)	 	Fiscal Year ending in year x
				
	Fourth quarter estimated (payable March 15, year x + 1)	 	Fiscal Year ending in year x	 	Fourth quarter estimated (payable December 15,	 	Fiscal Year ending in year x

  

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information subject to the confidentiality request. Omissions are designated as ****. A complete version of the exhibit has been filed separately with the Securities and Exchange Commission. 

	 	 	 	 	year x)	 	 
				
	Final payment for Fujitsu Member taxable year ended March 31, year x + 1 (payable June 15, year x + 1)	 	Fiscal Year ending in year x	 	Final payment for AMD Member taxable year ended last Sunday in December, year x (payable March 15, year x + 1)	 	Fiscal Year ending in year x
	

  
 “Tax Liability
Distribution Adjustment” shall mean an amount, which may be either positive or negative, which shall be determined with respect to each Member for each Fiscal Year as the excess of (i) the product of the Tax Distribution Rate for
such Fiscal Year multiplied by such Member’s allocable share of the Company’s taxable income as reflected on such Member’s final or, if applicable, amended Schedule K-1 to IRS Form 1065 for such Fiscal Year, minus the
amount of tax credits allocated to such Member on such Schedule K-1, over (ii) the amount of such Member’s Tax Liability Distributions previously made with respect to such Fiscal Year. 
  
 “Tax Matters Partner” shall mean AMD Member. 
  
 “Technology” has the meaning set forth in the AMD
Distribution Agreement and in the Fujitsu Distribution Agreement. 
  
 “Technology Roadmap” means the Company’s written technology and product roadmap, as approved from time to time by the appropriate Officer or Officers of the Company. 
  
 “Transfer” (including, with correlative meaning, the term
“Transferred”) means, with respect to any Membership Interest in the Company or portion thereof, a sale, conveyance, exchange, assignment, pledge, encumbrance, gift, bequest, hypothecation or other transfer or disposition by any
other means, whether for value or no value and whether voluntary or involuntary (including, without limitation, by operation of law), or an agreement to do any of the foregoing. 
  
 “Transferred Employees” is defined in Section 3.2.1 of the Secondment Agreement and shall include all other
employees transferred by Fujitsu and its Affiliates to a Company Entity. 
  
 “Transfer Shares” is defined in Section 9.3.5. 
  
 “Transferring Member” is defined in Section 9.3.1. 
  
 “Unit” means, with respect to a Membership Interest, a fractional, undivided share of such Membership
Interest issued pursuant to Article 3 of this Agreement. A Membership Interest may include a fractional Unit. As of the date hereof, the Units are held by 

  

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information subject to the confidentiality request. Omissions are designated as ****. A complete version of the exhibit has been filed separately with the Securities and Exchange Commission. 

 
the Members in accordance with Exhibit A, which Exhibit will be updated from time to time in accordance with the terms of this Agreement.

  
 “Valuation Amount” is defined in Section
9.3.5. 
  
 “Valuation Request” is defined in
Section 9.3.1. 
  
 “Valuations” is defined in
Section 9.3.1. 
  
 “Variances” is defined in
Section 8.8. 
  
 “Voting Stock” is defined in the
definition of “Change in Control.” 
  
 
ARTICLE 3. 
 CAPITAL; CAPITAL ACCOUNTS AND MEMBERS 
  

	 	
3.1	 	Initial Capital Contributions of Members 

  
 3.1.1 AMD Member. 
  
 (a) The Members acknowledge and agree that, pursuant to (i) the Capital Contribution Agreement dated as of May 16, 2003 between AMD Member and the
Company, (ii) the Contribution Agreement and (iii) the IP Contribution Agreement, as of the date hereof, AMD Member has contributed (or with respect to intellectual property rights has caused its Affiliates to contribute on its behalf) to the
Company the AMD Initial Contributed Assets, the Company has assumed certain liabilities of AMD Member and AMD pursuant to the Contribution Agreement, and these transactions shall be treated by AMD Member and the Company for federal income tax
purposes as constituting a capital contribution by AMD Member of the AMD Initial Contributed Assets, as further set forth on Exhibit A. 
  
 (b) AMD Member shall, pursuant to and subject to the conditions set forth in the Contribution Agreement and not later than July 18, 2003, contribute to
the Company the AMD Post-Closing Contributed Assets (as defined in the Contribution Agreement). The Members acknowledge and agree that this transaction shall be treated by AMD Member and the Company for federal income tax purposes as constituting a
capital contribution by AMD Member of the AMD Post-Closing Contributed Assets. 
  
 3.1.2 Fujitsu Member. 
  
 (a) The Members acknowledge and agree that, pursuant to (i) the Contribution Agreement and (ii) the IP Contribution Agreement, as of the date hereof, Fujitsu Member has contributed (or with respect to intellectual property rights has caused
its Affiliates to contribute on its behalf) to the Company the Fujitsu Closing Date Contributed Assets (as defined in the Contribution Agreement), the Company has assumed certain liabilities of Fujitsu Member and Fujitsu pursuant to the Contribution
Agreement, and these transactions shall be treated by Fujitsu Member and the Company for federal income tax purposes as constituting a capital 

  

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information subject to the confidentiality request. Omissions are designated as ****. A complete version of the exhibit has been filed separately with the Securities and Exchange Commission. 

 
contribution by Fujitsu Member of the Fujitsu Closing Date Contributed Assets, as further set forth on Exhibit A. 
  
 (b) Fujitsu Member shall, pursuant to and subject to the conditions set
forth in the Contribution Agreement and not later than July 18, 2003, contribute to the Company the Fujitsu Post-Closing Contributed Assets (as defined in the Contribution Agreement). The Members acknowledge and agree that this transaction shall be
treated by Fujitsu Member and the Company for federal income tax purposes as constituting a capital contribution by Fujitsu Member of the Fujitsu Post-Closing Contributed Assets. 
  
 3.1.3 Capital Account Balances. The names, addresses, Capital Account balances of each Member (after giving effect to
the transactions described in Sections 3.1.1(a) and 3.1.2(a)), Percentage Interests of, and number of Units owned by, the Members are as set forth on Exhibit A. Upon the completion of the contribution of the AMD Post-Closing
Contributed Assets as described in Section 3.1.1(b) and the contribution of the Fujitsu Post-Closing Contributed Assets as described in Section 3.1.2(b), the Board of Managers shall cause Exhibit A to be updated with respect to both
Members to reflect such contribution. The Capital Account balances set forth on Exhibit A immediately after Exhibit A is updated to reflect the contribution of the AMD Post-Closing Contributed Assets and the Fujitsu
Post-Closing Contributed Assets reflect the Members’ final determination as to the amount of each Member’s Capital Contribution of its respective Contributed Assets. The amount of a Member’s Capital Contribution attributable to its
respective Contributed Assets immediately after all contributions have been made in accordance with this Section 3.1 shall not subsequently be altered, amended or modified, and Depreciation with respect to all Contributed Assets shall be determined
based on the Gross Asset Values of such Contributed Assets reflected in such Capital Contributions unless and until the Gross Asset Values of such Contributed Assets are subsequently adjusted pursuant to the definition of “Gross Asset
Value” set forth herein. 
  

	 	
3.2	 	Additional Capital Contributions by Members 

  
 Except as provided in Section 3.1, no Member shall be required to make any additional Capital Contributions to the Company. 
  

	 	
3.3	 	Capital Accounts 

  
 A Capital Account shall be established and maintained by the Company for each Member in accordance with the terms of this Agreement. 
  

	 	
3.4	 	Member Capital 

  
 Except as otherwise provided in this Agreement or with the prior vote of the Board of Managers including a Special Vote of the Board of Managers for so
long as Fujitsu Member’s Percentage Interest is at least twenty percent (20%): (a) no Member shall demand or be entitled to receive a return of or interest on any portion of its Capital Contributions or balance in its Capital Account; (b) no
Member shall withdraw any portion of its Capital Contributions or receive any distributions from the Company as a return of capital on account of such Capital 

  

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information subject to the confidentiality request. Omissions are designated as ****. A complete version of the exhibit has been filed separately with the Securities and Exchange Commission. 

 
Contributions; and (c) the Company shall not redeem or repurchase the Membership Interest of any Member, provided that any such return, distribution or
redemption that is permitted hereunder shall be pro rata based upon the Members’ respective Percentage Interests. 
  

	 	
3.5	 	Liability of Members 

  
 Except as otherwise required by any non-waivable provision of the Act or other Applicable Law and except as provided in this Agreement or other agreements
between the Company and one or more Members or their Affiliates, no Member shall be personally liable in any manner whatsoever for any debt, liability or other obligation of the Company, whether such debt, liability or other obligation arises in
contract, tort, or otherwise solely by reason of being a Member. 
  
 
ARTICLE 4. 
 FINANCING OF THE COMPANY 
  

	 	
4.1	 	Types of Financing 

  
 4.1.1 General. The Board of Managers shall be responsible for determining the type of financing required to fund the operations of the Company,
which may include issuing equity to Members or through transactions in public or private markets, or incurring debt from Members or from public, private or bank markets with or without Member Guarantees; provided, however, that no Member Debt
Financing or Member Guarantees shall affect a Member’s respective Membership Interest except upon the conversion of a Convertible Note in accordance with Section 4.3.2(d)(4) or if the terms of such financing include a conversion right and that
right is exercised. In considering financing options and taking into account (i) the Members’ obligations and the priority of financing methods for funding Financing Shortfalls in Section 4.3 and Operations Shortfalls in Section 4.4, (ii) the
Company’s right to seek financing through equity or other investments from third parties and (iii) the Company’s Revolver, the Board of Managers shall seek any financing during the 4-Year Period in the following order of priority:

  
 (a) lease and debt financing and other similar financing
(such as factoring of receivables) from Persons other than Members or their Affiliates without Member Guarantees; then 
  
 (b) Member Guaranteed Financing on a pro rata basis based on Percentage Interests; then 
  
 (c) Member Debt Financing on a pro rata basis. 
  
 Notwithstanding the foregoing, in the event that one Member or its Affiliates is able to issue a Member Guarantee to a third party to
procure its pro rata portion of any Member Guaranteed Financing, then (1) such Member or its Affiliates will be able to do so even if the other Member or its Affiliates is unable to do so and (2) such other Member or its Affiliates must provide
Member Debt Financing for its pro rata portion of such financing. In such event, the terms of the Member Debt Financing will be consistent in all material respects with the terms of the Member 

  

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Guaranteed Financing. Any Member Guaranteed Financing shall be on commercially reasonably terms and subject to the Board of Manager’s consent, such
consent to not be unreasonably withheld or delayed. 
  
 4.1.2
Member Guarantees. Unless the applicable guaranteeing Member or its Affiliates otherwise agrees: 
  
 (a) each Member Guarantee shall provide that: 
  
 (1) the maximum principal amount guaranteed thereunder does not exceed the product of (A) the maximum aggregate amount of the Member Guaranteed Financing
and the corresponding Member Debt Financing (if any) being sought by and actually committed to the Company multiplied by (B) such Member’s Percentage Interest at the time of issuance of the Member Guarantee; and 
  
 (2) the Person(s) seeking payment thereunder cannot seek an amount from a
Member and its Affiliates in excess of such Member’s Guaranteed Percentage of the amount outstanding under the Member Guaranteed Financing at the time such payment is sought. (For purposes of this Section 4.1.2(a)(2), “Guaranteed
Percentage” means, with respect to any Member Guarantee, the percentage determined by the following calculation: (A) the maximum principal amount guaranteed thereunder (as determined in accordance with Section 4.1.2(a)(1)), divided
by (B) the aggregate committed principal amount of the corresponding Member Guaranteed Financing. 
  
 (b) no Member or its Affiliates shall be required to issue a Member Guarantee with respect to any lease financing that has a life longer than four (4)
years; 
  
 (c) with respect to a Member Guarantee issued with
respect to a revolving credit facility or credit facility that allows for more than one borrowing, such Member Guarantee (i) shall not cover any amounts not drawn down that remain undrawn by the Company under such credit facility as of the last day
of the 4-Year Period and (ii) will cover any amounts drawn down by the Company and remaining outstanding under such credit facility as of the last day of the 4-Year Period only to the extent such outstanding amounts are scheduled to be repaid in
full by the Company in equal installments on no less than an annual basis to the Person(s) providing such financing during the 2-year period starting on the date that the 4-Year Period expires and ending on the date that is six (6) years from the
Launch Date; and 
  
 (d) except with respect to financing
provided in connection with Financing Shortfalls, no Member or its Affiliates shall be required to provide a Member Guarantee with respect to any financing to the Company with a term that is longer than four (4) years or that extends beyond the date
that is six (6) years from the Launch Date. 
  
 4.1.3 Member
Debt Financings. Each Member Debt Financing (a) shall be structured such that interest and principal payments thereon shall be scheduled on the same dates during each relevant fiscal quarter as each other Member Debt Financing and (b) unless the
applicable Member or its Affiliates otherwise agrees, shall not have a term that is longer than 

  

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four (4) years or extends beyond the date that is six (6) years from the Launch Date. Other than the Revolver or lease financings, any Member Debt Financing
or Member Guaranteed Financing shall be in the form of an amortizing term loan. 
  

	 	
4.2	 	Allocation of Financing Responsibility During the First 4-Year Period 

  

During the 4-Year Period, AMD and Fujitsu shall or shall cause AMD Member and Fujitsu Member, respectively, to provide financing to the Company on a
pro rata basis based on the respective Percentage Interests of AMD Member and Fujitsu Member, respectively, existing at the time each extension of credit is made, to the extent contemplated by and in accordance with (a) the 4-Year Fixed Financial
Support Plan and (b) the provisions of Sections 4.1, 4.3 and 4.4. The 4-Year Fixed Financial Support Plan may only be amended with the written approval of both Fujitsu Member and AMD Member, which each such Member may grant or withhold in its sole
discretion. 
  

	 	
4.3	 	Financing Shortfalls 

  
 4.3.1 Calculation. If at any time during the 4-Year Period, the Company intends to spend an amount on (i) Capex or (ii) R&D and G&A (taken
together), which, together with previous amounts spent for (i) Capex or (ii) R&D and G&A (taken together), exceeds the cumulative dollar limits for such category or categories, as the case may be, from the Launch Date through such time of
determination set forth in the 4-Year Fixed Financial Support Plan, then a “Financing Shortfall” shall be deemed to occur. If a Financing Shortfall occurs, the Company shall (a) determine whether it has funds available to pay for
such excess amount (the amount by which the Company determines its funds are insufficient to pay the excess being the “Financing Shortfall Amount”) and (b) shall promptly notify the Members of the occurrence of the Financing
Shortfall and the Financing Shortfall Amount (if any). The calculation necessary to determine whether a Financing Shortfall has occurred and the Financing Shortfall Amount shall be made with reference to the respective line items in the most recent
Company financial statements and any expenditures through such time of determination that will be included as such items in future financial statements. For purposes of this Section 4.3.1, the amount allocated to Capex for the third fiscal quarter
of 2003 shall be increased by the amount that (a) the U.S.$163.1 million allocated to Capex for the second fiscal quarter of 2003 exceeds (b) the amounts of actual Capex expended during the second fiscal quarter of 2003 with respect to the Business,
provided that the Company shall promptly provide written notice to each Member demonstrating the calculation thereof. 
  
 4.3.2 Funding Obligation. In the event that a Financing Shortfall occurs and a Financing Shortfall Amount exists, then the Financing Shortfall
Amount shall be funded in the following order of priority: 
  
 (a) First, debt financing from Persons other than the Members and their Affiliates (without Member Guarantees) will be solicited by the Company prior to seeking any Member Guaranteed Financing or Member Debt Financing; 
  

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 (b) Second, if the financing option set forth in Section 4.3.2(a) is unavailable, the Company
shall seek Member Guaranteed Financing, provided, however, that no Member shall be obligated to provide such Member Guarantee; 
  
 (c) Third, if the Financing Shortfall Amount is due to an acceleration of Capex from a subsequent Fiscal Year covered by the 4-Year Fixed
Financial Support Plan and the financing options set forth in Sections 4.3.2(a) and (b) are unavailable, the Company may accelerate amounts to be financed by the Members or their respective Affiliates in the following Fiscal Year with respect to
such Capex as set forth in the 4-Year Fixed Financial Support Plan (such accelerated amounts, “Pull-Ins”). Any such Pull-In will be financed on a pro rata basis based on the respective Percentage Interests of each Member at the time
of the issuance of the Pull-In Note (as defined below); provided, however, that no Member or its Affiliates shall be obligated to provide its pro rata share of such Pull-In. If a Member or its Affiliates fails to fund its portion of
any such Pull-In, the other Member or its Affiliates may elect to fund its portion and the Non-Funding Member’s portion of such Pull-In, and the Company will issue to the Funding Member two separate notes in the form attached hereto as
Exhibit D (each a “Pull-In Note”), each with a principal amount that reflects the amount of the Pull-In multiplied by the respective Member’s Percentage Interest at the time of the issuance of the Pull-In Note
(the Pull-In Note attributable to the Non-Funding Member’s amount being the “Non-Funding Member Pull-In Note,” and the Pull-In Note attributable to the Funding Member’s amount being the “Funding Member Pull-In
Note”). To the extent the Pull-In Notes have not been repaid by the Company in accordance with the terms of such notes, the Non-Funding Member shall be obligated to repay the Non-Funding Member Pull-In Note to the Funding Member by no later
than April 1 of the Fiscal Year following the Fiscal Year in which such note was issued by the Company, by either (i) purchasing the Non-Funding Member Pull-In Note for an amount equal to the outstanding principal amount of such Non-Funding Member
Pull-In Note (plus accrued and unpaid interest thereon) or (ii) lending an amount equal to the outstanding principal amount of, and accrued and unpaid interest on, the Non-Funding Member Pull-In Note to the Company so that the Company may repay the
amount owed under such Non-Funding Member Pull-In Note to the Funding Member; provided that with respect to (ii) above (x) such loan is structured so that the Funding Member is in fact immediately repaid with the proceeds thereof and (y) the
Company is not restricted contractually or otherwise from so borrowing from the Non-Funding Member or repaying the owed amount to the Funding Member. 
  
 (d) Fourth, if the financing options set forth in Sections 4.3.2(a), (b) and (c) are unavailable or are insufficient to cover the Financing
Shortfall Amount, the Company shall seek Member Debt Financing for the remaining Financing Shortfall Amount based on each Member’s pro rata Percentage Interest. If a Member elects to fund its pro rata portion of the Financing Shortfall Amount
(it being agreed that no Member shall be required to provide such financing), the Company shall issue to such Funding Member a non-convertible note in the amount of such Member’s pro rata funding of the Financing Shortfall Amount in the form
attached hereto as Exhibit E-1 (a “Non-Convertible Note”). However, if a Member elects not to fund its pro rata portion of the Financing Shortfall Amount, the Funding Member may elect also to fund the Non-Funding
Member’s portion, and in return the Company shall issue to the Funding Member a convertible note in the form attached hereto as Exhibit E-2 (a “Convertible 

  

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Note” and, together with the Non-Convertible Note, “Financing Shortfall Notes”) with a principal amount equal to the amount of
the Non-Funding Member’s pro rata portion of the Financing Shortfall Amount. 
  
 (1) Each Financing Shortfall Note shall bear interest at the same per annum rate as Member Debt Financing made under the 4-Year Operations Plan, and interest thereon shall be payable quarterly. Each Financing
Shortfall Note shall be a 4-year amortizing note, with principal due and payable in four (4) equal annual installments, that is extendable at the option of the Member holding the Financing Shortfall Note and pre-payable at the option of the Company;
provided, however, that if excess cash is not available to pay any of the annual installments in full at the time when due, pursuant to the provisions and restrictions set forth in Section 5.1.2 (including a lack of excess cash due to the
prepayment of debt that has priority as set forth in Section 5.2), such unpaid installment will be deferred to the subsequent annual period, but, notwithstanding anything to the contrary in Section 5.1, in no event shall the final maturity of any
such Financing Shortfall Note be extended without the consent of the Member holding the Financing Shortfall Note. 
  
 (2) At any time prior to the repayment in full or conversion of a Convertible Note, the Non-Funding Member may acquire for cash such Convertible Note by
paying to the Funding Member an amount equal to the principal amount then outstanding, plus accrued and unpaid interest, under such Convertible Note. Upon such an acquisition, the conversion feature of such Convertible Note shall terminate.

  
 (3) Notwithstanding the maturity date of any Convertible
Note, such Convertible Note shall be convertible on or after the date (the “Conversion Eligibility Date”) that is the earlier of (a) the date of delivery of an Offer Notice by the Non-Funding Member and (b) the later of (x) the date
that is four (4) years and ninety (90) days after the Launch Date and (y) the date that is one year after the date of issuance of such Convertible Note. 
  
 (4) Prior to converting a Convertible Note, the Funding Member holding the Convertible Note shall give the Non-Funding Member written notice of its
intention to convert and, in the case that clause (b) of Section 4.3.2(d)(3) applies, make a Valuation Request pursuant to the method and process provided in Section 9.3. Upon receiving such notice, the Non-Funding Member shall have thirty (30) days
to elect to purchase such Convertible Note as set forth in Section 4.3.2(d)(2). If the Non-Funding Member does not elect to purchase such Convertible Note within such 30-day period, the Funding Member holding the Convertible Note shall have the
right to convert such Convertible Note upon completion of the Valuation. Upon conversion of the Convertible Note, the Company shall issue a number of Units to the Funding Member representing an additional Percentage Interest equal to the quotient
of: 
  
 (A) the then outstanding principal amount of the
Convertible Note plus accrued and unpaid interest 
  
 divided
by 
  

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 (B) the product of the Valuation Amount multiplied by the aggregate number of outstanding Units (prior
to the issuance of Units upon conversion of such Convertible Note). 
  

	 	
4.4	 	Operations Shortfalls 

  
 4.4.1 Calculation. No later than fifteen (15) days prior to the start of each fiscal quarter covered by the 4-Year Fixed Financial Support Plan,
the Company will determine (a) the Projected Ending Cash Balance for such fiscal quarter, and (b) whether there is an Operations Shortfall with respect to such fiscal quarter. In the event that the Company determines that an Operations Shortfall
exists, it shall promptly provide written notice thereof to each Member specifying the Operations Shortfall Amount and demonstrating the calculation thereof. 
  
 4.4.2 Draw Down. In the event that an Operations Shortfall occurs, the Company may draw down the Operations Shortfall Amount from the Revolver (or
that portion thereof available under the Revolver, if any). If (and only if) the Revolver is not available, AMD and Fujitsu shall, or shall cause their respective Affiliates to, upon no less than thirty (30) days’ prior written notice from the
Company, provide Member Debt Financing (or arrange for the provision of Member Guaranteed Financing) in an amount equal to the Percentage Interest (at the time of such Member Debt Financing) of AMD Member or Fujitsu Member, respectively, of the
Operations Shortfall Amount (or the remaining portion thereof); provided, however, that 
  
 (a) the amount that the Company may draw under the Revolver or the aggregate Member Debt Financing shall be reduced by an amount equal to any excess
spending (that has not already been so deducted from previous Operations Shortfall Amounts) measured cumulatively since the Launch Date on each of (i) Capex and (ii) R&D and G&A (taken together), that exceeds the sum of the limits for such
category or categories set forth in the 4-Year Fixed Financial Support Plan for the period from the Launch Date through the end of the applicable fiscal quarter; and 
  
 (b) if the Company made any prepayment of debt to a Member or its respective Affiliates in accordance with Section 5.2 in
the preceding fiscal quarter, the Operations Shortfall Amount shall be funded by AMD or Fujitsu or their respective Affiliates (i) up to the amount of such prepayments, on a pro rata basis in proportion to the amount of such prepayments made to each
Member or its respective Affiliates and (ii) thereafter, on the Percentage Interest of AMD Member or Fujitsu Member, as applicable. 
  

	 	
4.5	 	Obligations Outstanding at End of 4-Year Period 

  
 Each Member’s or its respective Affiliates’ obligations under any loans, guarantees or other financial support provided by such Member or its
Affiliates that remain outstanding at the end of the 4-Year Period shall remain in effect until the expiration of such obligations, which shall be consistent with time limitations set forth in Sections 4.1.2 and 4.1.3, provided that the
Company (a) shall endeavor to retire any Member Debt Financing as quickly as reasonably practicable and (b) shall not, without the applicable Member’s consent, extend the 

  

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information subject to the confidentiality request. Omissions are designated as ****. A complete version of the exhibit has been filed separately with the Securities and Exchange Commission. 

 
maturity date, or otherwise amend any term that would increase the Company’s financial or other obligations under, or extend the maturity of, any Member
Guaranteed Financing. 
  

	 	
4.6	 	Financing Responsibility After the First 4-Year Period 

  
 Upon determination by the Board of Managers that any financial support is necessary or appropriate for the conduct of the Company’s business after
the 4-Year Period (and subject to the option of the Board of Managers to seek other forms of financings as contemplated in Section 4.1.1), the provisions of Section 4.3.2 will apply mutatis mutandis to any such financing (except that (1) the
option of Pull-Ins in Section 4.3.2(c) shall no longer be applicable and (2) determination of the Conversion Eligibility Date in Section 4.3.2(d)(3) shall be the first anniversary of the date of any such Convertible Note); provided,
however, that no Member or its Affiliates shall have any obligation to provide any Capital Contributions, Member Debt Financing, Member Guaranteed Financing or other financial support to the Company (although each Member shall have the right
to participate in any such additional financing on a pro rata basis in accordance with its respective Percentage Interest). 
  
 
ARTICLE 5. 
 DISTRIBUTIONS 
  

	 	
5.1	 	Distributions of Cash Available for Distribution 

  
 5.1.1 Tax Liability Distributions and Curative Distributions. 
  
 (a) Subject to Section 5.3 and Article 10, and only to the extent permitted under the Company’s third-party debt
agreements, the Company shall make cash distributions to each Member by wire transfer one Business Day before each day on which such Member is required to make a payment of Tax under Section 6151(a) or 6655 of the Code (for the avoidance of doubt, a
payment of Tax shall for purposes of this Agreement be deemed “required” by Section 6655 to the extent that Section 6655 would impose an addition to tax upon the failure timely to make such payment). Each such distribution made to a Member
shall be equal to the Tax Distribution Rate multiplied by a reasonable estimate of the amount of the Company’s taxable income properly taken into account by such Member under Section 6151(a) or 6655 of the Code (in the case of income taken into
account under Section 6655, the amount of each Member’s taxable income properly taken into account shall be determined in accordance with Regulations Section 1.6654-2(d)(2) and the annualization method utilized by such Member pursuant to
Section 6655) (such amount of taxable income shall be determined without regard to (i) the Member’s share of the Company’s Tax credits or (ii) any items of such Member (or of members of its “affiliated group” within the meaning
of Code Section 1504(a) or of any other party) other than the Member’s allocable share of the Company’s items of income, gain, deduction and loss); provided, however, that if after the date hereof the United States Treasury
Department or the Internal Revenue Service issues more specific guidance applicable to the calculation of estimated tax liabilities of corporations that are partners in partnerships and a Member is required to calculate its estimated tax in
accordance with such guidance, the Company shall follow such guidance in determining the amount of the Company’s Tax Liability Distributions with respect to such Member. Within two hundred eighty-five (285) days 

  

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information subject to the confidentiality request. Omissions are designated as ****. A complete version of the exhibit has been filed separately with the Securities and Exchange Commission. 

 
following the end of each Fiscal Year, the Company shall (i) determine the Tax Liability Distribution Adjustment with respect to each Member and the Adjusted
Tax Liability Distribution Amount for each Member, (ii) provide to each Member a computation showing the amount of and (in reasonable detail) the calculations applied in determining the Tax Liability Distribution Adjustment and the Adjusted Tax
Liability Distribution Amount for each of the Members, and (iii) distribute to each Member the amount of such Member’s Tax Liability Distribution Adjustment, if such amount is a positive number (for the avoidance of doubt, such distribution
shall, at the time the Members’ respective Tax Liability Distribution Adjustments are determined, have the priority of a Tax Liability Distribution with respect to the Fiscal Year for which calculated). The Company shall reduce (but not below
zero) the amount of the Tax Liability Distribution(s) that would otherwise be made to any Member under this Section 5.1.1(a) with respect to any subsequent Fiscal Year to take into account the amount of any negative Tax Liability Distribution
Adjustment determined with respect to such Member for any prior Fiscal Year and not previously taken into account as a reduction under this sentence. If the Company anticipates that there may be insufficient cash available to make all Tax Liability
Distributions in full in respect of any Fiscal Year, (i) the Company shall make Tax Liability Distributions to the Members pro rata according to the maximum amounts to which each Member would be entitled if sufficient cash were available therefor,
and (ii) no Tax Liability Distributions shall be made to a Member in respect of a Member’s installment for estimated taxes covering calendar periods attributable to any subsequent Fiscal Year of the Company if the Tax Liability Distributions
that any Member is entitled to receive with respect to any prior Fiscal Year (determined without regard to any reductions based on insufficiency of cash) have not been distributed in full. The Company shall also make Tax Liability Distributions to
any Member in an amount equal to the sum of (i) the Tax Distribution Rate applicable to such Member with respect to income taken into account by the Company for the Audit Year (as defined below) multiplied by any increases in such
Member’s allocable share of the Company’s taxable income arising as a result of an audit of the Company or a Member, and (ii) any interest and penalties attributable to such increase in such Member’s allocable share (without reduction
or limitation based on the amount of the underlying taxes being computed at a rate in excess of the Tax Distribution Rate), and in the event such Tax Liability Distributions are not proportionate to the Members’ respective Percentage Interests
(as applicable to the Fiscal Year for which such audit change applies (the “Audit Year”)), the Company shall make an additional distribution as required so that the aggregate of such Tax Liability Distributions and such additional
distribution will have been made in the same ratio as the Members’ respective Percentage Interests as in effect for such Audit Year; provided, that if the Members’ respective Percentage Interests varied during such Audit Year, such
aggregate Tax Liability Distributions and additional distributions shall be made in the ratio of the Members’ respective “book” items (within the meaning of Code Section 704(b)) corresponding to the tax items in respect of which the
Tax Liability Distribution was made); and provided further, that if there is insufficient cash available to pay the entire amount of such Tax Liability Distributions and such additional distribution, such additional distribution shall be payable at
the same time as any Curative Distribution calculated with respect to the Fiscal Year in which such Tax Liability Distributions are made would be payable. For the avoidance of doubt, a Member shall not be entitled to receive Tax Liability
Distributions with respect to any amounts required to be recognized by a Member pursuant to Section 704(c)(1)(B) or Section 737 of the Code or corresponding provisions of State law. 
  

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information subject to the confidentiality request. Omissions are designated as ****. A complete version of the exhibit has been filed separately with the Securities and Exchange Commission. 

 (b) The Company shall, not later than 285 days following the close of each Fiscal Year, make a Curative
Distribution, in cash, to the Member entitled to receive a Curative Distribution with respect to such Fiscal Year and shall simultaneously provide to each Member a calculation showing (in reasonable detail) how the amount of the Curative
Distribution was determined. The Member entitled to receive a Curative Distribution with respect to any Fiscal Year shall be the Member to whom such amount must be distributed in order that the Adjusted Tax Liability Distribution Amount of one
Member in respect of such Fiscal Year and the sum of the Adjusted Tax Liability Distribution Amount of and the Curative Distribution made to the other Member in respect of such Fiscal Year shall be in the Target Ratio. Notwithstanding any other
provision of this Agreement, (i) no payments or distributions to the Members shall be made pursuant to Section 5.1.2(c) or any subsequent subsection of Section 5.1.2 until all distributions required to be made pursuant to this Section 5.1.1(b) and
5.1.1(c) have been made in full, (ii) no Curative Distribution shall be made in respect of any Fiscal Year of the Company if the Tax Liability Distributions (as described in Section 5.1.1(a) herein) that any Member is entitled to receive with
respect to such Fiscal Year (determined without regard to reductions based on insufficiency of cash) have not been distributed in full, and (iii) the Curative Distribution in respect of the Company’s Fiscal Year ending December 28, 2003 shall
be made at the same time as the Curative Distribution in respect of the Company’s Fiscal Year ending December 26, 2004. 
  
 (c) If the sum of a Member’s Adjusted Tax Liability Distribution Amount and Curative Distribution in respect of a Fiscal Year of the Company is less
than the amount of Taxes required to be paid by such Member in respect of such Fiscal Year of the Company (treating the Member’s allocable share of the Company’s income, gain, deduction, loss and credit as its sole Tax items and treating
the applicable Tax rate as the Tax Distribution Rate), then the Company, upon notice by such Member, shall make a distribution to such Member in cash in an amount equal to the amount of such difference, as set forth on such notice. Such notice shall
set forth a calculation showing (in reasonable detail) how such difference was determined. In the event distributions made pursuant to this Section 5.1.1(c) are not made in accordance with the Target Ratio, then the Company shall make an additional
distribution in cash in such amount as is required in order that the aggregate distributions made pursuant to this Section 5.1.1(c) with respect to such Fiscal Year of the Company shall be made in the Target Ratio. 
  
 (d) The Company shall not agree in any contract or otherwise to any
subordination of, or other restriction upon its ability to make, distributions set forth in Section 5.1.1(a) to any Member without the prior written consent of such Member. 
  
 5.1.2 Use of Cash. Subject to applicable legal and contractual restrictions and to Section 5.3 and Article 10,
remaining available Company cash balances after the Tax Liability Distributions referred to in Section 5.1.1 will be treated as follows (in the following order of priority): 
  
 (a) First, cash will be retained in the Company in an amount sufficient to fund the Company’s operations, in
accordance with the Company’s Annual Budget and 

  

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information subject to the confidentiality request. Omissions are designated as ****. A complete version of the exhibit has been filed separately with the Securities and Exchange Commission. 

 
Rolling Quarterly Plan. Such amount (i) will take into consideration scheduled debt service, lease and other payments to third parties, payments of amounts
due to either Member or their respective Affiliates pursuant to intellectual property license agreements, consulting agreements, services agreements, subcontracting agreements, lease agreements and other similar agreements, and scheduled debt
service payments to one Member or its Affiliates with respect to Member Debt Financing where the other Member (or its Affiliates) satisfied its financing obligation to the Company via Member Guaranteed Financing, but (ii) will not otherwise include
any of the uses of funds described in Sections 5.1.2(c) through (f) below; 
  
 (b) [intentionally omitted] 
  
 (c) Second, cash will be used to repay or pay, as the case may be, on a pari passu basis, all outstanding debt owed by the Company to AMD Member and/or Fujitsu Member or their respective Affiliates that is incurred as of the
Launch Date; 
  
 (d) Third, subject to Section 5.1.3
below, cash will be used to repay, on a pari passu basis, all outstanding debt owed by the Company to the applicable Members or their Affiliates, that is (i) incurred to fund the operations of the Company (other than the debt referred to in
clause (e) below) or (ii) evidenced by a Financing Shortfall Note issued after the expiration of the 4-Year Period, provided that if there are not enough funds available to pay such debt referred to in this Section 5.1.2(d), and any
Convertible Note evidencing a Non-Funding Member’s portion of any such Financing Shortfall Amount remains convertible, then the amount allocated to payments in respect of the Funding Member’s portion of any Financing Shortfall Amount shall
instead be allocated such that outstanding amounts under the Convertible Note are paid in full prior to paying amounts outstanding under the Non-Convertible Note; 
  
 (e) Fourth, subject to Section 5.1.3 below, cash will be used to repay, on a pari passu basis, all
outstanding debt owed by the Company to the applicable Members or their Affiliates that is evidenced by a Financing Shortfall Note issued during the 4-Year Period, provided that if there are not enough funds available to pay all such debt
referred to in this Section 5.1.2(e), and any Convertible Note evidencing a Non-Funding Member’s portion of any such Financing Shortfall Amount remains convertible, then the amount allocated to payments in respect of the Funding Member’s
portion of any Financing Shortfall Amount shall instead be allocated to the extent necessary so that the outstanding amounts under the Convertible Note are paid in full prior to paying amounts outstanding under the Non-Convertible Note; and

  
 (f) Fifth, subject to Section 5.1.4, any excess cash
remaining will be distributed at the discretion of the Board of Managers to AMD Member and Fujitsu Member pro rata based on their Percentage Interests at the time of such distribution. 
  
 Notwithstanding anything to the contrary herein, in the event that prior to ****, the Company procures lease financing with
respect to its owned equipment that (i) constitutes part of the fabrication facility known by the parties as “Fab 25” or the facility known by the parties as the “SDC,” (ii) was located as of June 30, 2003 at the Austin Real
Property (as defined in the Contribution Agreement) or the Sunnyvale Real Property (as defined in the Contribution Agreement), as applicable, and (iii) is not otherwise pledged or hypothecated to secure debt or 

  

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information subject to the confidentiality request. Omissions are designated as ****. A complete version of the exhibit has been filed separately with the Securities and Exchange Commission. 

 
subject to an existing lease facility, then the proceeds of any such financing shall be promptly paid to AMD as a prepayment of the AMD Asset Sale Promissory
Note (as defined in the Contribution Agreement); provided, however, that the aggregate amount of such prepayment(s) shall in no event exceed U.S.$99,000,000. 
  
 5.1.3 Treatment after 4-Year Period. Upon the date that is one (1) year after the last day of the 4-Year Period,
Sections 5.1.2(d)and 5.1.2(e) shall be combined so that all debt referred to therein shall be repaid on a pari passu basis, provided that the distinction in the treatment of the Convertible Notes versus Non-Convertible Notes thereunder
shall be preserved. 
  
 5.1.4 Excess Allocations. Subject
to Section 5.3 and Article 10, to the extent a Member’s Percentage Interest is adjusted for any reason as provided in this Agreement and the aggregate allocations of Net Profit (and similar items) net of any allocations of Net Losses (and
similar items) made to such Member pursuant to Article 6 on a cumulative basis through the effective time of such adjustment exceeded: (a) the aggregate distributions made to such Member pursuant to Sections 5.1.1, 5.1.2(f) and 5.5 plus (b)
all amounts previously distributed to such Member pursuant to this Section 5.1.4 through such effective time (collectively, an “Excess Allocation”), then prior to the making of any further distributions pursuant to Section 5.1.2(f)
(or Section 5.5, to the extent a distribution made under Section 5.5 is apportioned among the Members in the same amounts as a like amount of cash would have been apportioned pursuant to Section 5.1.2(f)), distributions shall first be made pro
rata among the Members according to their respective Excess Allocation amounts existing at such time, to the extent thereof. 
  

	 	
5.2	 	Prepayment 

  
 The Company may prepay any obligations to the Members or their Affiliates in respect of debt; provided, however, that (a) the Board of
Managers has determined that the Company has available for such prepayments funds that are in excess of the amount necessary to pay its outstanding obligations as they come due, (b) the Board of Managers has determined that such prepayments could
not reasonably be expected to cause an Operations Shortfall and (c) such prepayments are made in an order of priority consistent with the order of priority set forth in Section 5.1.2. 
  

	 	
5.3	 	Distributions Upon Liquidation 

  
 Distributions made in conjunction with the final liquidation of the Company shall be applied or distributed as provided in Article 10 hereof. 

 

	 	
5.4	 	Withholding 

  
 The Company may withhold amounts in respect of allocations or distributions if it is required to do so by any Applicable Law, and each Member hereby
authorizes the Company to withhold from or pay on behalf of or with respect to such Member such amount of federal, state, local or foreign taxes that the Tax Matters Partner determines the Company is required to withhold or pay with respect to any
amount distributable or allocable to such Member pursuant to this Agreement, provided that the Tax Matters Partner shall provide Fujitsu Member with 

  

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information subject to the confidentiality request. Omissions are designated as ****. A complete version of the exhibit has been filed separately with the Securities and Exchange Commission. 

 
five (5) Business Days advance written notice of the amount of any withholding to be made in respect of allocations or distributions to Fujitsu Member (or
any Affiliate of Fujitsu Member) which notice shall demonstrate the calculation thereof. Any amounts withheld pursuant to this Section 5.4 shall be treated as having been distributed to such Member. Each Member hereby represents that it has provided
to the Company IRS Form W-9 and that it has provided or will from time to time provide such other forms or documents as may reasonably be required in order to establish the status of such Member for purposes of the tax laws of any applicable
jurisdiction. Each Member agrees to indemnify and hold harmless the Company from any liability imposed on the Company for (i) any action taken by the Company in reliance upon such representation of tax withholding status or (ii) any failure to
withhold from any amount distributable or allocable, or deemed distributable or allocable, to such Member pursuant to this Agreement. A Member’s obligations hereunder shall survive the dissolution, liquidation or winding up of the Company. If
Fujitsu Member believes that the Tax Matters Partner may in the future adopt withholding practices in respect of Fujitsu Member (or any Affiliate of Fujitsu Member) that are not in accordance with the requirements of law, Fujitsu Member shall notify
the Tax Matters Partner of the basis for its objection to such withholding practices and, if the matter cannot be resolved by agreement, the Board of Managers shall refer the issue to an independent law firm of national stature (which shall not be a
law firm that is regularly used by the Tax Matters Partner or the Company), which shall advise the Company concerning the legal obligations of the Company in respect of withholding, and thereafter the Tax Matters Partner shall act consistently with
such advice in matters pertaining to withholding. If the Tax Matters Partner acts in accordance with the advice of such law firm and a Governmental Authority later asserts in writing to any Person that the Company failed to withhold Tax at the time
and/or in the amounts required by Chapter 3 of the Code or comparable provisions of other Tax laws in respect of Fujitsu Member and/or its Affiliates, then Fujitsu Member and/or its Affiliates, as applicable, shall promptly upon receipt of a copy of
such writing accompanied by a written notice from the Company specifying that a payment is required pursuant to this Section 5.4 pay to such Governmental Authority an amount in full satisfaction of the amount of Taxes so asserted by such
Governmental Authority. If Fujitsu Member and its Affiliates do not promptly pay such amount to such Governmental Authority, then, unless Fujitsu Member provides satisfactory written evidence of settlement in full of the matter asserted by the
Governmental Authority, the Company shall withhold such amount from the next distribution(s) to Fujitsu Member, shall promptly pay such withheld amounts over to such Governmental Authority in payment of such asserted liability for Taxes and shall
treat the amounts so withheld and paid over as actually distributed to Fujitsu Member. 
  

	 	
5.5	 	Distributions in Kind 

  
 (a) No right is given to any Member to demand or receive any distribution of property other than cash as provided in this Agreement. Upon a vote of the
Board of Managers (including a Special Vote of the Board of Managers for so long as Fujitsu Member’s Percentage Interest is at least twenty percent (20%)), the Board of Managers may determine, in its sole and absolute discretion, to make a
distribution in kind of Company Assets to the Members, and such Company Assets shall be distributed in such fashion as to ensure that the fair market value thereof (as determined by the Board of Managers, including a Special Vote of the Board of
Managers for so long as Fujitsu Member’s Percentage Interest is at least twenty 

  

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information subject to the confidentiality request. Omissions are designated as ****. A complete version of the exhibit has been filed separately with the Securities and Exchange Commission. 

 
percent (20%)) is distributed, and any items of gain or loss resulting from such distribution are allocated, in accordance with this Article 5 and Articles 6
and 10 hereof. 
  
 (b) Unless all of the Members agree otherwise
in writing, 
  
 (1) any distribution in kind of Company Assets
that were contributed to the Company more than seven (7) years before the distribution date of such Company Assets shall be made to the Members in undivided interests in proportions reflecting the manner in which the equivalent amount of cash would
be distributed pursuant to Sections 5.1.2(f), 5.1.4 or 10.5.1(e), as applicable, and 
  
 (2) any distribution in kind of Company Assets that were contributed to the Company seven (7) years or less before the distribution date shall, if the Percentage Interest of the Fujitsu Member is less than twenty
percent (20%) at the time of the distribution, be made to the Members in undivided interests in proportions reflecting the manner in which the equivalent amount of cash would be distributed pursuant to Sections 5.1.2(f), 5.1.4 or 10.5.1(e), as
applicable; provided, however, that at the election of either Member a distribution in kind of Company Assets pursuant to this Section 5.5(b)(2) shall not be made, in whole or in part, to the Members in undivided interests (and the amount not
so distributed in undivided interests shall instead be distributed to the Member that originally contributed such Company Asset) as long as either (y) the Members agree on the fair market values of the Company Asset to be distributed, or (z) the
value of such Company Asset has been established by a Qualified Valuator, who shall make such determination as soon as practicable, and in any event within sixty (60) days of being requested to do so. The Company shall pay all expenses of the
Qualified Valuator, whose determination shall be final and binding on the Company and the Members. Notwithstanding any other provision of this Section 5.5, the aggregate value of each distribution made hereunder shall be apportioned among the
Members in the same amounts as a like amount of cash would have been apportioned pursuant to Sections 5.1.2(f), 5.1.4 or 10.5.1(e), as applicable, and to that end the Company shall if necessary distribute cash as part of a distribution of any
distribution of Company Assets in kind. 
  

	 	
5.6	 	Limitations on Distributions 

  
 Notwithstanding any provision to the contrary contained in this Agreement, neither the Company nor the Board of Managers, on behalf of the Company, shall
be required to or shall knowingly make a distribution to any Member or the holder of any Economic Interest on account of its Membership Interest or Economic Interest in the Company (as applicable) in violation of the Act or other Applicable Law.

  
 
ARTICLE 6. 
 ALLOCATIONS OF NET PROFITS AND NET LOSSES 
  

	 	
6.1	 	General Allocation of Net Profits and Losses 

  
 6.1.1 Net Profits and Net Losses shall be determined and allocated with respect to each Fiscal Year of the Company as of the end of such Fiscal Year and
at such other times, if 

  

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information subject to the confidentiality request. Omissions are designated as ****. A complete version of the exhibit has been filed separately with the Securities and Exchange Commission. 

 
any, as the Board of Managers shall determine is appropriate for purposes of administering this Agreement. Subject to the other provisions of this Agreement,
an allocation to a Member of a share of Net Profits or Net Losses shall be treated as an allocation of the same share of each item of income, gain, loss or deduction that is taken into account in computing Net Profits or Net Losses. 
  
 6.1.2 Subject to the other provisions of this Article 6, Net Profits, Net
Losses and any other items of income, gain, loss and deduction for any Fiscal Year shall be allocated in proportion to the Members’ respective Percentage Interests. 
  

	 	
6.2	 	Regulatory Allocations 

  
 Notwithstanding the foregoing provisions of this Article 6, the following special allocations shall be made in the following order of priority:

  
 6.2.1 If there is a net decrease in Company Minimum Gain
during a Company taxable year, then, to the extent required by Regulations Section 1.704-2(f), each Member shall be allocated items of Company income and gain for such taxable year (and, if necessary, for subsequent years) in an amount equal to such
Member’s share of the net decrease in Company Minimum Gain, determined in accordance with Regulations Section 1.704-2(g)(2). This Section 6.2.1 is intended to comply with the minimum gain chargeback requirement of Regulations Section 1.704-2(f)
and shall be interpreted consistently therewith. 
  
 6.2.2 If
there is a net decrease in Member Minimum Gain attributable to a Member Nonrecourse Debt during any Company taxable year, each Member who has a share of the Member Minimum Gain attributable to such Member Nonrecourse Debt, determined in accordance
with Regulations Section 1.704-2(i)(5), shall, to the extent required by Regulations Section 1.704-2(i)(4), be specially allocated items of Company income and gain for such taxable year (and, if necessary, subsequent years) in an amount equal to
such Member’s share of the net decrease in Member Minimum Gain attributable to such Member Nonrecourse Debt, determined in a manner consistent with the provisions of Regulations Section 1.704-2(g)(2). This Section 6.2.2 is intended to comply
with the partner nonrecourse debt minimum gain chargeback requirement of Regulations Section 1.704-2(i)(4) and shall be interpreted consistently therewith. 
  
 6.2.3 If any Member unexpectedly receives an adjustment, allocation, or distribution of the type contemplated by Regulations Section
1.704-1(b)(2)(ii)(d)(4), (5) or (6), and after receiving such adjustment, allocation, or distribution, such Member has an Adjusted Capital Account Deficit, items of income and gain shall be allocated to all such Members (in proportion to the amounts
of their respective Adjusted Capital Account Deficits) in an amount and manner sufficient to eliminate the Adjusted Capital Account Deficit of such Member as quickly as possible. This Section 6.2.3 is intended to constitute a “qualified income
offset” within the meaning of Regulations Section 1.704-1(b)(2)(ii)(d) and shall be interpreted consistently therewith. 
  
 6.2.4 If the allocation of Net Loss to a Member as provided in Section 6.1 would create or increase an Adjusted Capital Account Deficit for such Member,
there shall be 

  

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information subject to the confidentiality request. Omissions are designated as ****. A complete version of the exhibit has been filed separately with the Securities and Exchange Commission. 

 
allocated to such Member only that amount of Net Loss as will not create or increase an Adjusted Capital Account Deficit. The Net Loss that would, absent the
application of the preceding sentence, otherwise be allocated to such Member shall be allocated to the other Members in accordance with their relative Percentage Interests, subject to the limitations of this Section 6.2.4. If, after the allocation
of Net Loss pursuant to the preceding two sentences, no additional amount of Net Loss can be allocated to any Member without creating or increasing an Adjusted Capital Account Deficit for such Member, then Net Loss shall be allocated to the Members
in accordance with their relative Percentage Interests. This Section 6.2.4 is intended to implement the alternate test for economic effect set forth in Regulations Section 1.704-1(b)(2)(ii)(d) and shall be interpreted consistently therewith.

  
 6.2.5 To the extent that an adjustment to the adjusted tax
basis of any Company Asset pursuant to Code Section 734(b) or Code Section 743(b) is required, pursuant to Regulations Section 1.704-1(b)(2)(iv)(m)(2) or Regulations Section 1.704-1(b)(2)(iv)(m)(4), to be taken into account in determining Capital
Accounts as the result of a distribution to a Member in complete liquidation of its Interest in the Company, the amount of such adjustment to the Capital Accounts shall be treated as an item of gain (if the adjustment increases the basis of the
asset) or loss (if the adjustment decreases such basis), and such gain or loss shall be specially allocated to the Members in accordance with their interests in the Company in the event that Regulations Section 1.704-1(b)(2)(iv)(m)(2) applies, or to
the Members to whom such distribution was made in the event that Regulations Section 1.704-1(b)(2)(iv)(m)(4) applies. 
  
 6.2.6 The Nonrecourse Deductions for each taxable year of the Company shall be allocated to the Members in proportion to their Percentage Interests.

  
 6.2.7 The Member Nonrecourse Deductions shall be allocated
each year to the Member that bears the economic risk of loss (within the meaning of Regulations Section 1.752-2) for the Member Nonrecourse Debt to which such Member Nonrecourse Deductions are attributable. 
  
 6.2.8 The allocations set forth in Sections 6.2.1, 6.2.2, 6.2.3, 6.2.4,
6.2.5, 6.2.6 and 6.2.7 (the “Regulatory Allocations”) are intended to comply with certain requirements of Regulations Sections 1.704-1(b) and 1.704-2. Notwithstanding the provisions of Section 6.1.2, the Regulatory Allocations shall
be taken into account by the Board of Managers in specially allocating other items of income, gain, loss and deduction among the Members so that, to the extent possible, the net amount of such allocations of other items and the Regulatory
Allocations to each Member shall be equal to the net amount that would have been allocated to each such Member if the Regulatory Allocations had not occurred. In exercising its discretion under this Section 6.2.8, the Board of Managers shall take
into account future Regulatory Allocations that, although not yet made, are likely to offset other Regulatory Allocations previously made. 
  

	 	
6.3	 	Tax Allocations 

  
 6.3.1 Except as provided in Section 6.3.2, for income tax purposes under the Code and the Regulations and for purposes of applicable state and local law,
each Company item of income, gain, loss and deduction shall be allocated between the Members in the same manner 

  

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information subject to the confidentiality request. Omissions are designated as ****. A complete version of the exhibit has been filed separately with the Securities and Exchange Commission. 

 
as its correlative item of “book” income, gain, loss or deduction is allocated pursuant to this Article 6. 
  
 6.3.2 Tax items with respect to Company Assets that are contributed to the
Company with a Gross Asset Value that varies from its basis in the hands of the contributing Member immediately preceding the date of contribution shall be allocated between the Members for income tax purposes pursuant to Regulations promulgated
under Code Section 704(c) or, if applicable, corresponding provisions of applicable state or local law so as to take into account such variation. The Company shall account for such variation under any permissible method set forth in Regulations
Section 1.704-3 as determined by the Tax Matters Partner. If the Gross Asset Value of any Company Asset is adjusted pursuant to subsection (2) of the definition of “Gross Asset Value,” subsequent allocations of income, gain, loss and
deduction with respect to such Company Asset shall take account of any variation between the adjusted basis of such Company Asset for federal income tax purposes and its Gross Asset Value under any permissible method set forth in Regulations Section
1.704-3 as determined by the Tax Matters Partner. Any tax credits will be allocated to the Members in accordance with the requirements of applicable tax law. Allocations pursuant to this Section 6.3.2 are solely for purposes of federal, state and
local taxes and shall not affect, or in any way be taken into account in computing, any Member’s Capital Account or share of Net Profits, Net Losses and any other items or distributions pursuant to any provision of this Agreement. 

 

	 	
6.4	 	Other Provisions 

  
 6.4.1 For any Fiscal Year during which any Membership Interest or Economic Interest or portion thereof is Transferred between the Members or to another
Person or is otherwise disposed of or acquired, or there is for any other reason a change in the Members’ respective Percentage Interests, the portion of the Net Profits, Net Losses and other items of income, gain, loss, deduction and credit
with respect to such Membership Interest or Economic Interest or portion thereof shall be allocated and, to the extent necessary apportioned, under any method allowed pursuant to Section 706 of the Code and the applicable Regulations, as reasonably
determined by the Board of Managers; provided, that the Board of Managers shall utilize consistent methods with respect to the same or substantially similar transactions and items in making such allocations or apportionments with respect to all such
changes in the Members’ respective Percentage Interests, whether occurring within a single Fiscal Year or in different Fiscal Years. 
  
 6.4.2 In the event that the Code or any Regulations require allocations of items of income, gain, loss, deduction or credit different from those set forth
in this Article 6, the Board of Managers is hereby authorized to make new allocations in reliance on the Code and such Regulations, and no such new allocation shall give rise to any claim or cause of action by any Member, provided that such
allocations are consistent with the advice of the Company Accountant or tax counsel and are not likely to alter materially the amounts which each Member is entitled to receive under the terms of this Agreement. 
  
 6.4.3 For purposes of determining a Member’s proportional share of the
Company’s “excess nonrecourse liabilities” within the meaning of Regulations 

  

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 Confidential treatment has been requested for portions of this exhibit. The copy filed herewith omits the
information subject to the confidentiality request. Omissions are designated as ****. A complete version of the exhibit has been filed separately with the Securities and Exchange Commission. 

 
Section 1.752-3(a)(3), each Member’s interest in Net Profits shall be such Member’s Percentage Interest. 
  
 6.4.4 Section 482 Adjustments. 
  
 (a) Company Section 482 Adjustment. If the Internal Revenue Service
or any applicable state or local taxing authority reallocates an item of income, deduction or loss to the Company pursuant to Code Section 482 or any similar rule or principle of law (a “Company Section 482 Allocation”), and a
Member or an Affiliate of such Member has a corresponding “correlative item,” as determined under Regulations Section 1.482-1(g) (the “Member Correlative Item”), the item of income, deduction or loss constituting such
Company Section 482 Allocation shall be specially allocated to and reflected in the Capital Account of the Member who received (or whose Affiliate received) such Member Correlative Item, and such Member shall be treated as making any corresponding
deemed capital contribution or receiving any corresponding deemed distribution, with such deemed capital contribution or distribution, as the case may be, reflected in the Capital Account of such Member. 
  
 (b) Member Section 482 Adjustment. If the Internal Revenue Service or
any applicable state or local taxing authority reallocates an item of income, deduction or loss to a Member or an Affiliate of such Member pursuant to Code Section 482 or any similar rule or principle of law (a “Member Section 482
Allocation”), and the Company has a corresponding “correlative item,” as determined under Regulations Section 1.482-1(g) (the “Company Correlative Item”), such Company Correlative Item shall
be specially allocated to and reflected in the Capital Account of the Member that received (or whose Affiliate received) such Member Section 482 Allocation, and such Member shall be treated as making any corresponding deemed capital contribution or
receiving any corresponding deemed distribution, with such deemed capital contribution or distribution, as the case may be, reflected in the Capital Account of such Member. 
  
 (c) Corresponding Treatment if Foreign Adjustment. If any taxing authority outside the United States makes an
adjustment to the income, deduction or loss of the Company or a Member (or an Affiliate of a Member) that is analogous to an adjustment under Code Section 482, the Board of Managers shall use commercially reasonable efforts to handle any affected
items of the Company in a manner analogous to the treatment of an adjustment under Code Section 482 as set forth in Sections 6.4.4(a) and 6.4.4(b) above. 
  
 6.4.5 The Members acknowledge and are aware of the income tax consequences of the allocations made by this Article 6 and hereby agree to be bound by the
provisions of this Article 6 in reporting their shares of the Company’s income and loss for federal, state and local income tax purposes. Without limiting the foregoing sentence, each Member acknowledges that, while it presently has no plan or
intention to take a position in preparing a tax return that requires it to file a notice of inconsistent treatment under Code Section 6222(b), if it intends to do so in the future, it shall use its best efforts to provide at least ten (10) days
advance notice of such intent to the Company and shall, if so requested by the Company, consult with the Tax Matters Partner concerning such position. 
  

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 Confidential treatment has been requested for portions of this exhibit. The copy filed herewith omits the
information subject to the confidentiality request. Omissions are designated as ****. A complete version of the exhibit has been filed separately with the Securities and Exchange Commission. 

 6.4.6 Any Member who is treated as contributing cash to the Company under Regulation Section 1.1032-3(b)
pursuant to the stock option plan described in Section 7.16 herein or any similar plan shall be specially allocated an amount of the Company’s corresponding compensation deductions equal to the amount of the deemed cash contribution; provided,
that if options are exercised by an employee of a Company Entity (other than the Company) that is classified as a partnership for United States federal income tax purposes (or as an entity disregarded as separate from a partnership), the Company
shall ensure that the Company will be allocated an amount of such Company Entity’s compensation deductions at least equal to the amount of such deemed cash contribution and such compensation deductions (not in excess of the amount of the deemed
cash contribution) shall be specially allocated to the contributing Member; and provided further, that if options are exercised by an employee of a Company Entity that is not classified as a partnership (or as an entity disregarded as separate from
a partnership) for United States federal income tax purposes, such contributing Member shall be specially allocated, for the Fiscal Year of the Company which includes the date of such exercise, deductions (which shall consist of a pro rata share of
each item of deduction taken into account by the Company in computing Net Profits or Net Losses for such Fiscal Year in accordance with Section 6.1.1 herein) in an amount equal to the amount of the compensation deduction the Company would have had
if such exercising employee had been an employee of the Company, but in no event shall such special allocation of deductions with respect to any such employee of any such Company Entity exceed the amount of the contributing Member’s deemed cash
contribution pursuant to Regulations Section 1.1032-3(b), determined in accordance with the principles set forth in the following sentence of this Section 6.4.6 with respect to the options so exercised. A Member shall be treated as contributing cash
to the Company under Regulation Section 1.1032-3(b) to the extent (x) the fair market value of the purchased shares of the Member or its Affiliate as of the date the option with respect to such shares is exercised pursuant to the stock option plan
described in Section 7.16 herein or any similar plan, exceeds the sum of (y) the amount of cash (if any) paid or to be paid in accordance with Section 7.16 herein by the Company to a Member or its Affiliate (excluding any portion of such amount that
is paid as interest pursuant to Section 7.16 herein) in consideration for such option multiplied by a fraction the numerator of which is the number of shares purchased pursuant to such option exercise and the denominator of which is the aggregate
number of shares subject to such option and (z) the aggregate exercise price paid with respect to the number of shares purchased pursuant to such option exercise. For purposes of this Section 6.4.6, a Company Entity that is treated as disregarded
from the Company for U.S. federal income tax purposes shall be treated as the Company. 
  
 6.4.7 All matters concerning the allocations and other determinations provided for in this Article 6 and any accounting procedures not expressly provided for in this Agreement shall be determined by the Board of
Managers in a manner consistent with the terms and intent of this Agreement. 
  

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information subject to the confidentiality request. Omissions are designated as ****. A complete version of the exhibit has been filed separately with the Securities and Exchange Commission. 

 
ARTICLE 7. 
 MANAGEMENT 
  

	 	
7.1	 	Board of Managers 

  
 7.1.1 Powers. Except as otherwise expressly provided in this Agreement, all management powers over the business, property and affairs of the
Company are exclusively vested in a board of Managers (the “Board of Managers”), and no Member shall have any right to participate in or exercise control or management power over the business and affairs of the Company
or otherwise to bind, act or purport to act on behalf of the Company in any manner. Subject to the limitations set forth in this Agreement, the Board of Managers shall have all the rights and powers that may be possessed by a manager under the Act,
which shall include, without limitation, the power to incur indebtedness, the power to enter into agreements and commitments of all kinds, the power to manage, acquire and dispose of Company Assets, and all ancillary powers necessary or convenient
as to the foregoing. Unless authorized by a Special Vote of the Board of Managers, no individual Manager may act for the Board of Managers or have authority to bind the Company. The Managers shall devote such time to the business and affairs of the
Company as is reasonably necessary for the performance of their duties, but shall not be required to devote full time to the performance of such duties. 
  
 7.1.2 Evaluation of Officers. The Board of Managers will be responsible for supervision and evaluation of the Company’s Chief Executive
Officer and other Executive Officers on an ongoing basis, including at least an annual review of their performance to ensure they are acting in accordance with prudent business practices. In doing so, the Board of Managers will consider, among other
factors, deviations in the Company’s financial condition, results of operations and/or cash flows compared to those matters as set forth in the 4-Year Operations Plan and the then-applicable Annual Budget and Rolling Quarterly Plan and whether
any such deviations were caused by unexpected external factors. In the event that the Board of Managers determines that the Chief Executive Officer or any other Executive Officer is not acting in accordance with prudent business practices, then, as
soon as practicable, the Board of Managers shall (i) if appropriate, take actions to remedy or improve the performance of the Chief Executive Officer and/or other Executive Officers or (ii) replace the Chief Executive Officer or other Executive
Officers. 
  

	 	
7.2	 	Number of Managers; Appointment of Managers 

  
 The Board of Managers shall initially consist of ten (10) individuals (each such individual, a “Manager”). Subject to
Sections 7.3 and 7.4 below, six (6) of the Managers shall be appointed by AMD Member and four (4) of the Managers shall be appointed by Fujitsu Member. Unless a Manager resigns (including death or retirement) or is removed, each Manager shall hold
office until a successor shall have been duly elected in accordance with this Section 7.2. Any Manager may be removed for cause in accordance with Applicable Law. In addition, each Member having the right to nominate a Manager or Managers pursuant
to this Section 7.2 shall also have the right, in its sole discretion, to remove such Manager or Managers at any time, by delivery of written notice to the other Members, the Company and the Manager(s) to be removed. In the case of a vacancy in the
office of a Manager for any reason 

  

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information subject to the confidentiality request. Omissions are designated as ****. A complete version of the exhibit has been filed separately with the Securities and Exchange Commission. 

 
(including by reason of death, resignation, retirement or removal pursuant to the preceding sentence), the vacancy shall be filled by the Member that
nominated the Manager in question; provided, however, that in the case of a vacancy created due to a change in a Member’s Percentage Interest as described Section 7.3 or 7.4, such vacancy shall be filled in accordance with Section 7.3 or
7.4. AMD Member hereby selects Hector de J. Ruiz, Robert Rivet, Bertrand Cambou, Thomas McCoy, James Doran and Henri Richard to serve on the initial Board of Managers, and Thomas Eby as the non-voting participant contemplated under Section 7.4.
Fujitsu Member hereby selects Toshihiko Ono, Shinji Suzuki, Nobutake Matsumura and Kazuhiko Kato to serve on the initial Board of Managers, and Kazunori Imaoka as the non-voting participant contemplated under Section 7.3. 
  

	 	
7.3	 	Effect of Change in Fujitsu Member’s Percentage Interest on Fujitsu Managers 

  
 The number of Managers that Fujitsu Member can appoint or maintain on the Board of Managers shall depend on Fujitsu
Member’s Percentage Interest as follows: 
  

	 Fujitsu Member’s Percentage Interest

	 	 Number of Fujitsu Managers

	 3 30%
	 	4
	 3 20% and < 30%
	 	3
	 3 10% and < 20%
	 	2
	 < 10%
	 	0

  
 If Fujitsu
Member’s Percentage Interest should fall below any of the threshold levels listed above, there shall promptly be a vote of the Members to elect a new Board of Managers based upon the new Percentage Interests. In addition, for so long as Fujitsu
Member’s Percentage Interest is greater than or equal to five percent (5%), Fujitsu Member shall have the right to have one (1) additional representative attend meetings of the Board of Managers as a non-voting participant. 
  

	 	
7.4	 	Effect of Change in AMD Member’s Percentage Interest on AMD Managers 

  
 The number of Managers that AMD Member can appoint or maintain on the Board of Managers shall depend on AMD Member’s
Percentage Interest as follows: 
  

	 AMD Member’s Percentage Interest

	 	 Number of AMD Managers

	 3 50%
	 	6
	 3 45% and < 50%
	 	5
	 3 30% and < 45%
	 	4
	 3 20% and <30%
	 	3
	 3 10% and <20%
	 	2
	 <10%
	 	1

  

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 Confidential treatment has been requested for portions of this exhibit. The copy filed herewith omits the
information subject to the confidentiality request. Omissions are designated as ****. A complete version of the exhibit has been filed separately with the Securities and Exchange Commission. 

 If AMD Member’s Percentage Interest should fall below any of the threshold levels listed above,
there shall promptly be a vote of the Members to elect the Board of Managers based upon the new Percentage Interests. In addition, for so long as AMD Member’s Percentage Interest is greater than or equal to five percent (5%), AMD Member shall
have the right to have one (1) representative attend meetings of the Board of Managers as a non-voting participant. 
  

	 	
7.5	 	Chairman of the Board of Managers 

  
 A Chairman of the Board of Managers (the “Chairman of the Board”) shall preside at all meetings of the Board of Managers.
Selection of the Chairman of the Board from among the Managers shall be as follows: During the first three (3) years following the Launch Date, the Chairman of the Board will be appointed by Fujitsu Member, subject to AMD Member’s approval,
which approval shall not be unreasonably withheld. During the next three (3) years, the Chairman of the Board will be appointed by AMD Member subject to Fujitsu Member’s approval, which approval shall not be unreasonably withheld. The right to
appoint a Manager as Chairman of the Board will continue to rotate between Fujitsu Member and AMD Member in this manner; provided, however, that if the Percentage Interest of either AMD Member or Fujitsu Member falls below thirty percent
(30%), then the Chairman of the Board will be appointed by a majority of the Board of Managers and neither Member will have an approval right. The Chief Executive Officer may not serve as the Chairman of the Board. 
  

	 	
7.6	 	Meetings of Members and of the Board of Managers; Quorum 

  
 7.6.1 Member Meetings. At any time, and from time to time, the Board of Managers may, but shall not be required to, call meetings of the Members.
Written notice of any such meeting (which may be provided via facsimile) shall be given to all Members not less than five (5) Business Days nor more than thirty-five (35) Business Days prior to the date of such meeting. Each meeting of the Members
shall be conducted by the Chairman of the Board of Managers or any designee thereof. Each Member may authorize any Person (provided such other Person is an officer of the Member or its parent company) to act for it or on its behalf on all matters in
which the Member is entitled to participate. Each proxy must be signed by a duly authorized officer of the Member. All other provisions governing, or otherwise relating to, the holding of meetings of the Members, shall from time to time be
established in the sole discretion of the Board of Managers. Interpreters will be provided for any meeting of the Members, at the cost of the Company, upon the request of any Member. 
  
 7.6.2 Action by Member Consent. Any action which may be taken at any meeting of the Members, may be taken without a
meeting, without prior notice and without a vote, if a consent in writing, setting forth the action so taken is executed by all Members. 
  
 7.6.3 Board Meetings. The Board of Managers shall hold meetings at least once per every fiscal quarter. It is the intention of the Members that all
Managers attend each meeting in person, and each Manager shall use such Manager’s best efforts to attend each meeting in person. The presence of six (6) Managers (with at least fifty percent (50%) of the Managers present being AMD Managers), in
each case, in person or by telephone conference or by other means of communications acceptable to the Board of Managers, shall be necessary and sufficient 

  

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information subject to the confidentiality request. Omissions are designated as ****. A complete version of the exhibit has been filed separately with the Securities and Exchange Commission. 

 
to constitute a quorum for the purpose of taking action by the Board of Managers at any meeting of the Board of Managers. 
  
 7.6.4 Notice; Waiver. The regular quarterly meetings of the Board of
Managers described in Section 7.6.3 shall be held upon not less than five (5) Business Days written notice. Additional meetings of the Board of Managers may be held at the request of any Manager, upon not less than five (5) Business Days written
notice (which may be provided via facsimile or other manner provided in Section 13.5) or telephonic notice to each Manager (which notice shall be provided to the other Managers by the requesting Manager). The presence of any Manager at a meeting
(including by means of telephone conference or other means of communications acceptable to the Board of Managers) shall constitute a waiver of notice of the meeting with respect to such Manager. Except as otherwise expressly provided in Section
7.6.8 and Schedule B, no action taken by the Managers at any meeting shall be valid unless the requisite quorum is present. 
  
 7.6.5 Voting of Managers. Except as otherwise expressly provided in this Agreement, all actions, determinations or resolutions of the Board of
Managers shall require the affirmative vote or consent of a majority of the Board of Managers present at any meeting at which a quorum is present. Each Manager shall be entitled to one (1) vote, and Managers shall not be entitled to cast their vote
through proxies. The Board of Managers may act without a meeting if the action is consented to in advance or subsequently ratified, in each case in writing, by the requisite number of Managers (including the affirmative vote of at least fifty
percent (50%) of the Managers appointed by Fujitsu serving at that time in the case of matters requiring a Special Vote) that would have been required at a meeting of the Board of Managers with all Managers present. 
  
 7.6.6 Meetings by Telecommunications. Unless the Act otherwise
provides, members of the Board of Managers shall have the right to participate in all meetings of the Board of Managers by means of a conference telephone or similar communications equipment by means of which all persons participating in the meeting
can hear each other at the same time and participation by such means shall constitute presence in person at a meeting. 
  
 7.6.7 Interpreters. Interpreters will be provided for any meeting of the Board of Managers, at the cost of the Company, upon the request of any
Manager. 
  
 7.6.8 Related Party Claims. Notwithstanding
anything herein to the contrary, the decision of any Company Entity to pursue, and the procedures for pursuing, a Fujitsu Manager Claim or an AMD Manager Claim shall be as set forth on Schedule B. 
  

	 	
7.7	 	Actions Requiring a Special Vote of the Board of Managers 

  
 Notwithstanding the provisions of Section 7.6.5 or any other provisions of this Agreement, the Company may not, and no Member or Manager may cause the
Company to, take any of the following actions or any other action specified in this Agreement as requiring a Special Vote without a Special Vote of the Board of Managers: 
  

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 Confidential treatment has been requested for portions of this exhibit. The copy filed herewith omits the
information subject to the confidentiality request. Omissions are designated as ****. A complete version of the exhibit has been filed separately with the Securities and Exchange Commission. 

 7.7.1 **** Threshold. In addition to Special Vote provisions provided to Fujitsu Member in
Sections 7.7.2 and 7.7.3, for so long as Fujitsu Member’s Percentage Interest is at least ****: 
  
 (a) effect any investment in, or acquisition or disposition of, assets (including through a transfer of equity securities) by a Company Entity or Company
Entities (including by merger, consolidation or otherwise) that comprise greater than **** of the fair market value (subject to the last paragraph of this Section 7.7.1, as determined by the Board of Managers) of the assets of the Company Entities
taken as a whole; provided, however, that there shall be no Special Vote of the Board of Managers required with respect to the acquisition or construction of the **** in the 4-Year Fixed Financial Support Plan to the extent that the
acquisition or construction of **** does not require the cumulative capital expenditure amounts set forth in the 4-Year Fixed Financial Support Plan through the then-current fiscal quarter to be exceeded; 
  
 (b) effect a merger or consolidation (in a transaction or series of
transactions) in which the Company is not the surviving entity or in which the Company is the surviving entity but in either case in which the Membership Interests or Units possessing more than fifty percent (50%) of the total combined Membership
Interests or Units are transferred to a Person or Persons different than those who held such interests immediately prior to the merger or consolidation or the initial transaction culminating in such merger or consolidation; 
  
 (c) settle any lawsuit, administrative proceeding, tax claim or other legal
proceeding where any Company Entity pays the settlement of a dollar amount that is greater than ten percent (10%) of the fair market value (subject to the last paragraph of this Section 7.7.1, as determined by the Board of Managers) of the assets of
the Company Entities taken as a whole; 
  
 (d) settle any
lawsuit, administrative proceeding, tax claim or other legal proceeding involving both a Company Entity on the one hand, and AMD or any of its Affiliates on the other hand, that involves actual or potential payments to or from any Company Entity
exceeding ten million dollars (U.S.$10,000,000); 
  
 (e) settle
any series of related lawsuits, administrative proceedings, tax claims or other legal proceedings involving both a Company Entity on the one hand, and AMD or any of its Affiliates on the other hand, that involves actual or potential payments to or
from any Company Entity exceeding fifty million dollars (U.S.$50,000,000) in the aggregate; or 
  
 (f) During any time period that AMD Member’s Percentage Interest is greater than fifty percent (50%) but AMD does not consolidate the Company’s
results of operations with AMD’s financial statements, (i) effect the investment in, or acquisition of, any Person (including by an acquisition of equity securities of such Person, by a transaction structured as an asset purchase or transfer,
or by merger, consolidation or otherwise) by a Company Entity or Company Entities, in each case that exceeds one hundred million dollars (U.S.$100,000,000) in the aggregate, or (ii) ****. 
  

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information subject to the confidentiality request. Omissions are designated as ****. A complete version of the exhibit has been filed separately with the Securities and Exchange Commission. 

 For purposes of Sections 7.7.1(a) and 7.7.1(c), if a five percent decrease in the fair market value of
the assets of the Company Entities taken as a whole (as determined by the Board of Managers) would have resulted in a requirement for a Special Vote under either of such Sections, then there shall be a Special Vote with respect to the determination
of the fair market value of the assets of the Company Entities taken as a whole. 
  
 7.7.2 **** Threshold. In addition to Special Vote provisions provided to Fujitsu Member in Section 7.7.3, for so long as Fujitsu Member’s Percentage Interest is at least ****: 
  
 (a) approve the fairness of pricing terms and the fairness of other terms
having an economic impact of any contract, agreement, arrangement or understanding (or any series of related contracts, agreements, arrangements or understandings relating to the same or substantially similar subject matter) entered into after the
date hereof between any Company Entity on the one hand, and AMD (or any of their respective Affiliates) on the other hand, that involves actual or potential payments to or from any Company Entity exceeding seventeen million five hundred thousand
dollars (U.S.$17,500,000) in any Fiscal Year or eighty seven million five hundred thousand dollars (U.S.$87,500,000) in the aggregate over the life of the contract, agreement, arrangement or understanding; 
  
 (b) approve the fairness of pricing terms and the fairness of other terms
having an economic impact of any amendment to any contract, agreement, arrangement or understanding (or any series of related contracts, agreements, arrangements or understandings relating to the same or substantially similar subject matter) between
any Company Entity on the one hand, and AMD (or any of their respective Affiliates) on the other hand, which amendment involves (i) a change in actual or potential payments to or from any Company Entity exceeding seventeen million five hundred
thousand dollars (U.S.$17,500,000) in any Fiscal Year or eighty seven million five hundred thousand dollars (U.S.$87,500,000) in the aggregate over the life of the contract, agreement, arrangement or understanding or (ii) a material reduction in the
services, rights or privileges received by any Company Entity under the contract, agreement, arrangement or understanding without proportionate reduction in fees, royalties or other payments to AMD (or its respective Affiliates, provided that no
Company Entity shall be deemed an AMD Affiliate for the purposes of this provision) thereunder; 
  
 (c) authorize any Company Entity to engage in or undertake any material activity unrelated to the Business (and the scope of license rights granted
pursuant to the Fujitsu-FASL Patent Cross-License Agreement dated as of June 30, 2003 between Fujitsu and the Company shall not be deemed to limit in any manner the requirement that a Special Vote is necessary for any Company Entity to engage in or
undertake any such activity). For purposes of this Section 7.7.2(c), “Business” shall mean all aspects related to the development, manufacture and sale of semiconductor devices (including single chip or multiple chip products), a
substantial function of which is code and/or data storage; 
  
 (d) change the equity capital structure of any Company Entity, except for the issuance of employee options in Company equity interests; 
  

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information subject to the confidentiality request. Omissions are designated as ****. A complete version of the exhibit has been filed separately with the Securities and Exchange Commission. 

 (e) effect any distribution from the Company to its Members other than in cash or any distribution in
cash other than in accordance with Article 5 of this Agreement; 
  
 (f) amend the charter documents of any Material Company Entity; or 
  
 (g) amend the charter documents of any other Company Entity that adversely and disproportionately affects Fujitsu or Fujitsu Member as compared to AMD or AMD Member. 
  
 For the purposes of sub-sections 7.7.2(a) and 7.7.2(b), it is agreed by the
parties that various contracts under which AMD or its Affiliates provide services to Company Entities (including under the AMD Services Agreement (as defined in the Contribution Agreement) and the AMD Technology Services Agreement (as defined in the
Contribution Agreement)) are considered a series of related contracts relating to the same or substantially similar subject matter so that the dollar thresholds set forth in sub-sections 7.7.2(a) and 7.7.2(b) apply to all such contracts taken
collectively on an annual basis; and in determining whether any increase in amounts payable to AMD or an AMD Affiliate thereunder exceed such dollar thresholds, reductions in payments for services to AMD or an AMD Affiliate shall not be deemed to
offset any portion of any increase. 
  
 7.7.3 ****
Threshold. For so long as Fujitsu Member’s Percentage Interest is at least ****: 
  
 (a) effect any resolution to wind-up any Material Company Entity (unless the relevant governing documents or this Agreement expressly provide for “automatic” dissolution upon the happening of certain
events); or 
  
 (b) effect the filing of any application or
petition for bankruptcy, reorganization or other similar proceedings under Applicable Laws with respect to any Material Company Entity. 
  

	 	
7.8	 	Limitations on Authority of Board of Managers 

  
 Notwithstanding any contrary provision of this Agreement, each Member agrees to vote its Units, and to cause Managers that it appoints to vote, in a
manner that will cause the Company and each applicable Company Entity to refrain from taking any of the following actions: 
  
 7.8.1 **** Threshold. In addition to the restrictions benefiting Fujitsu Member in Sections 7.8.2 and 7.8.3, for so long as Fujitsu Member’s
Percentage Interest is at least****: 
  
 (a) enter into any
manufacturing or development joint venture, strategic alliance, similar arrangement or agreement with an integrated electronics manufacturer having the majority of its assets or business operations in Japan and annual semiconductor revenues in
excess of one hundred billion yen (¥100,000,000,000); 
  

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information subject to the confidentiality request. Omissions are designated as ****. A complete version of the exhibit has been filed separately with the Securities and Exchange Commission. 

 (b) Prior to the end of ****, enter into a joint venture, strategic alliance, similar arrangement or
agreement relating to manufacturing, memory product design or CMOS process development (referred to herein as the “Core Business”) that involves the actual or potential contribution of cash or assets by the Company to such joint
venture, or to a third party involved in a joint venture, strategic alliance, similar arrangement or agreement, exceeding fifty million dollars (U.S.$50,000,000) in any Fiscal Year or two hundred fifty million dollars (U.S.$250,000,000) in the
aggregate over the life of the joint venture, strategic alliance, similar arrangement or agreement; provided, however, that this covenant shall not apply to (i) agreements for providing foundry services with entities that derive more
than seventy-five percent (75%) of their revenues from providing foundry services (provided that such agreements do not include an investment by the Company in such entity, its Affiliates or capital equipment) or (ii) joint ventures, strategic
alliances, similar arrangements or agreements for the assembly, pack, mark and test of semiconductor devices; or 
  
 (c) enter into any joint venture, strategic alliance, similar arrangement or agreement relating to activities outside of the Core Business and that
involves the actual or potential contribution of cash or assets by the Company exceeding two hundred million dollars (U.S.$200,000,000) in any Fiscal Year or one billion dollars (U.S.$1,000,000,000) in the aggregate over the life of the joint
venture, strategic alliance, similar arrangement or agreement. 
  
 7.8.2 **** Threshold. In addition to the restrictions benefiting Fujitsu Member in Section 7.8.3, for so long as Fujitsu Member’s Percentage Interest is at least ****: 
  
 (a) notwithstanding anything in this Agreement to the contrary, allow any
Company Entity to grant or issue any employee options to acquire equity interests in the Company; or 
  
 (b) allow any Company Entity to change its domicile if such change would result in significant adverse tax consequences to Fujitsu Member or Fujitsu.

  
 7.8.3 Any Percentage Interest. For so long as Fujitsu
Member maintains a Percentage Interest greater than zero percent (0%): 
  
 (a) do any act in contravention of this Agreement; 
  
 (b) except as provided for in this Agreement, knowingly perform any act that would subject any Member to liability for the debts, liabilities or obligations of the Company; 
  
 (c) subject to Units required to be issued pursuant to Section 4.3.2(d)(4),
issue additional Units of the Company (or any rights to acquire additional Units) to any Person; 
  
 (d) fail to insure that the senior technical staff of the Company will include former employees of both AMD and Fujitsu and that input from such
employees will be included and fully considered in decisions to materially modify the Technology Roadmap; 
  

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information subject to the confidentiality request. Omissions are designated as ****. A complete version of the exhibit has been filed separately with the Securities and Exchange Commission. 

 (e) **** facilities prior to ****; 
  
 (f) prior to ****, reduce the cumulative employee headcount (including seconded employees, if any) of **** facilities below
the lesser of (i) **** of the cumulative employee headcount (including seconded employees) of such facilities at the Launch Date or (ii) **** of the cumulative headcount (excluding seconded employees) of such facilities at the Launch Date plus the
number of employees seconded as of the Launch Date whose secondment period has not then ended plus the number of employees seconded as of the Launch Date who accepted employment with the Company or a Company Entity as of the end of such seconded
employees’ secondment period (other than dismissals of employees for cause or by voluntary separation); 
  
 (g) prior to ****, reduce the cumulative employee headcount (including seconded employees, if any) of **** facilities below the lesser of (i) **** of the
cumulative employee headcount (including seconded employees) of such facilities at the Launch Date or (ii) **** of the cumulative headcount (excluding seconded employees) of such facilities at the Launch Date plus the number of employees seconded as
of the Launch Date who accepted employment with the Company or a Company Entity as of the end of such seconded employees’ secondment period (other than dismissals of employees for cause or voluntary separation); 
  
 (h) prior to **** any of the facilities used by ****; 
  
 (i) prior to ****, reduce the cumulative employee headcount (including
seconded employees) of **** below the lesser of (i) **** of the cumulative employee headcount (including seconded employees) of such **** at the Launch Date or (ii) **** of the cumulative headcount (excluding seconded employees) of such **** at the
Launch Date plus the number of employees seconded as of the Launch Date whose secondment period has not then ended plus the number of employees seconded as of the Launch Date who accepted employment with the Company or a Company Entity as of the end
of such seconded employees’ secondment period (other than dismissals of employees for cause or by voluntary separation); 
  
 (j) prior to ****, reduce the cumulative employee headcount (including seconded employees) of **** below the lesser of (i) **** of the cumulative
employee headcount (including seconded employees) of such **** at the Launch Date or (ii) **** of the cumulative headcount (excluding seconded employees) of such **** at the Launch Date plus the number of employees seconded as of the Launch Date who
accepted employment with the Company or a Company Entity as of the end of such seconded employees’ secondment period (other than dismissals of employees for cause or voluntary separation); 
  
 (k) without limiting Section 7.8.3(e), prior to **** facilities without
providing at least six (6) months’ prior written notice to AMD Member and Fujitsu Member or **** facilities without providing at least three (3) months’ prior written notice to AMD Member and Fujitsu Member; 
  
 (l) without limiting Sections 7.8.3(f), 7.8.3(g), 7.8.3(i) and 7.8.3(j),
prior to ****, reduce the cumulative employee headcount of **** facilities or the employee 
  

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headcount of **** below the cumulative employee headcount of such facilities **** (as the case may be) at the Launch Date, without providing at least six (6)
months’ prior written notice of such reductions to AMD Member and Fujitsu Member (other than dismissals of employees for cause or voluntary separation); or 
  

(m) prior to ****, reduce the employee headcount of **** facility below the employee headcount of such facility at the Launch Date without providing
at least three (3) months’ prior written notice of such reduction to AMD Member and Fujitsu Member (other than dismissals of employees for cause or voluntary separation). 
  

	 	
7.9	 	Compensation of Managers 

  
 Except for reimbursement from the Company for out-of-pocket costs and expenses incurred by the Managers in the performance of their duties, the Managers
shall not be entitled to any other compensation in their capacities as Managers unless otherwise agreed upon in writing by all of the Members. 
  

	 	
7.10	 	Accounting; Records and Reports 

  
 7.10.1 Accounting and Fiscal Year. The books, records and accounts of the Company, including for all applicable tax purposes, will be maintained in
accordance with such methods of accounting as shall be determined by the Board of Managers. The fiscal year of the Company (“Fiscal Year”) shall correspond to that of AMD for as long as AMD Member and/or an Affiliate of AMD Member
holds a greater than fifty percent (50%) Percentage Interest in the Company in the aggregate. The Company shall have a taxable year which complies with Section 706(b) of the Code. 
  
 7.10.2 Books and Records. The Board of Managers shall cause to be kept, at the principal place of business of the
Company, or at such other location as the Board of Managers shall reasonably deem appropriate, full and proper ledgers, other books of account, and records of all receipts and disbursements, other financial activities, and the internal affairs of
the Company for at least the current and past four (4) Fiscal Years. The Board of Managers shall also cause to be kept at such location copies of each of the following: 
  
 (a) a current list of the full name and last known address of each Member, and the capital account, number of Units and
Percentage Interest held by each Member; 
  
 (b) a current list
of the full name and last known address of each Manager; 
  
 (c)
the Certificate of the Company, any amendments to the Certificate, and executed copies of any powers of attorney granted for the purpose of executing the Certificate; 
  
 (d) the Company’s federal, state and local income tax returns and reports, if any, for the seven (7) most recent
years; 
  

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information subject to the confidentiality request. Omissions are designated as ****. A complete version of the exhibit has been filed separately with the Securities and Exchange Commission. 

 (e) this Agreement and any amendments to this Agreement; 
  
 (f) financial statements of the Company for the five (5) most recent Fiscal
Years; and 
  
 (g) minutes of meetings of the Board of Managers
and the Members and any written consents of the Board of Managers or the Members for actions taken without a meeting. 
  
 7.10.3 Financial Reports. The Board of Managers shall also cause to be sent to each Member of the Company, the following: 
  
 (a) within sixty (60) days after the Launch Date, the Company shall provide
each Member with an unaudited balance sheet of the Company as of the Launch Date; 
  
 (b) within one hundred fifty (150) days following the end of each Fiscal Year, a computation of the Company’s taxable income allocable to such Member, and within two hundred seventy-five (275) days following the
end of each Fiscal Year Schedule K-1 to IRS Form 1065 and such other information as may be reasonably required by the Members for preparation of their respective federal, state and local income or franchise tax returns; 
  
 (c) a copy of the Company’s federal, state and local income tax or
information returns for each Fiscal Year, concurrent with the filing of such returns; 
  
 (d) within ninety (90) days after the end of each Fiscal Year or as soon thereafter as reasonably practicable, the Company shall provide each Member with an audited balance sheet, income statement and statement of
cash flows for the year then ended; 
  
 (e) within forty-five
(45) days after the end of each fiscal quarter or as soon thereafter as reasonably practicable, the Company shall provide each Member with an unaudited balance sheet, income statement and statement of cash flows for the year or quarter (as
appropriate) then ended, prepared in accordance with GAAP, as well as such other financial information as any Member may reasonably request to enable such Member and its Affiliates to prepare their consolidated quarterly and annual financial
statements; and 
  
 (f) As soon as reasonably practicable after
the end of each fiscal month, the Company shall provide each Member with a written monthly report, including an unaudited consolidated statement of income (or loss) for the Company and such other financial information as a Member may reasonably
request, for the most recent completed fiscal month of the Company. By no later than the close of business California time on the seventh (7th) calendar day of each calendar month, the Company shall also provide each Member a copy of such report for
the preceding fiscal month on a best estimate basis. 
  

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 7.10.4 Access to Company Books and Records. 
  
 (a) Members (personally or through an authorized representative) may, for
purposes reasonably related to their Interests, during reasonable business hours (i) examine and copy (at their own cost and expense) the books and records of the Company, including the records listed in Section 7.10.2, and (ii) have access to the
Company’s management, plans, properties and other assets to conduct due diligence and other investigations (including, without limitation, environmental assessments) regarding the Business and assets of the Company at such Member’s sole
expense, and the Company shall reasonably cooperate with such Member in such due diligence and investigations. 
  
 (b) Subject to such reasonable standards as imposed by the Board of Managers, upon the request of any Member for purposes reasonably related to its
Interest, the Board of Managers shall promptly deliver or cause to be delivered to the requesting Member, at the expense of the Company, a copy of the information required to be maintained under Sections 7.10.2(a) through 7.10.2(g). 
  
 (c) Any Member’s request for documents or request to inspect or copy
documents under this Section 7.10.4 (i) may be made by that Member or that Member’s authorized representative and (ii) shall be made in writing and shall state the purpose of such demand. 
  
 (d) The Board of Managers shall promptly furnish to a Member a copy of any
amendment to the Certificate or this Agreement. 
  
 (e) Except as
specifically stated in an agreement among each of the Members and the Company, a Person that holds an Economic Interest but who is not a Member shall have no right to information concerning the business and affairs of the Company and no inspection
rights. 
  

	 	
7.11	 	Indemnification and Liability of the Managers 

  
 7.11.1 Indemnification. The Company shall indemnify and hold harmless each Manager (individually, an “Indemnitee”) to the fullest
extent permitted by Applicable Law from and against any and all losses, claims, demands, costs, damages, liabilities, whether joint or several, expenses of any nature (including reasonable attorneys’ fees and disbursements), judgments, fines,
settlements and other amounts (each an “Indemnified Loss”) arising from any and all claims, demands, actions, suits or proceedings, civil, criminal, administrative or investigative, in which the Indemnitee may be involved, or
threatened to be involved as a party or otherwise, relating to the performance or nonperformance of any act concerning the activities of the Company or by reason of the Indemnitee’s status as a Manager, regardless of whether the Indemnitee
retains such status at the time any such Indemnified Loss is paid or incurred, if (a) the Indemnitee acted in good faith and in a manner he or she reasonably believed to be in, or not opposed to, the best interests of the Company and, in the case of
a criminal proceeding, had no reasonable cause to believe that his or her conduct was unlawful, and (b) the Indemnitee’s conduct did not constitute a breach of his or her duty of loyalty to the Company or its Members 
  

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or is an act or omission which involves intentional misconduct or a knowing violation of the law. The termination of an action, suit or proceeding by
judgment, order, settlement, or upon a plea of nolo contendere or its equivalent, shall not, in and of itself, create a presumption or otherwise constitute evidence that the Indemnitee acted in a manner contrary to that specified in clauses (a) or
(b) above. 
  
 7.11.2 Expenses. Expenses incurred by an
Indemnitee in defending any claim, demand, action, suit or proceeding subject to this Section 7.11 shall be advanced by the Company prior to the final disposition of such claim, demand, action, suit, or proceeding. 
  
 7.11.3 Company Expenses. Any indemnification provided hereunder shall
be satisfied solely out of the Company Assets, as an expense of the Company. No Member shall be subject to personal liability by reason of these indemnification provisions. 
  
 7.11.4 No Other Rights. The provisions of this Section 7.11 are for the benefit of the Indemnitees and shall not be
deemed to create any rights for the benefit of any other Person; provided, however, that the indemnification rights provided in this Section 7.11 will inure to the benefit of the heirs, legal representatives, successors, assigns and
administrators of the Indemnitee. 
  
 7.11.5 No Liability.
No Indemnitee shall be liable to the Company or to any Member for any losses sustained or liabilities incurred as a result of any act or omission of any Manager or any such other Person if (a) the Manager acted in good faith and in a manner he or
she reasonably believed to be in, or not opposed to, the best interests of the Company and, in the case of a criminal proceeding, had no reasonable cause to believe that his or her conduct was unlawful, and (b) the Manager’s conduct did not
constitute a breach of his or her duty of loyalty to the Company or its Members or is an act or omission which involves intentional misconduct or a knowing violation of the law. 
  
 7.11.6 Reliance Upon Agreement. To the extent that any Manager (each, a “Responsible Party”) has, at
law or in equity, duties (including, without limitation, fiduciary duties) to the Company, any Member or other Person bound by the terms of this Agreement, such Responsible Parties acting in accordance with this Agreement shall not be liable to the
Company, any Member, or any such other Person for its good faith reliance on the provisions of this Agreement. 
  
 7.11.7 Fiduciary Duties. The only fiduciary duties a Manager owes to the Company and the Members are the fiduciary duties a director serving on the
board of directors of a Delaware corporation would have under the DGCL, as interpreted by Delaware courts. Notwithstanding the foregoing, but subject to Section 7.6.8, a Manager shall not be required to recuse himself or herself from the Board of
Managers’ consideration of a matter in which the Member appointing such Manager may have a material financial interest. Such Manager shall be permitted to vote on such matter, and voting to approve such matter shall not in itself constitute a
violation of such Manager’s fiduciary duties. 
  

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7.12	 	Officers of the Company 

  
 7.12.1 Chief Executive Officer. The Company will employ a chief executive officer (the “Chief Executive Officer”) to be selected
by AMD Member for as long as it has a greater Percentage Interest than Fujitsu Member, subject to Fujitsu Member’s approval, which shall not be unreasonably withheld. The Member that appoints the Chief Executive Officer shall have the right to
appoint such individual as one of the Managers it is entitled to appoint under Section 7.2. In the event the Chief Executive Officer is not appointed as a Manager, the Chief Executive Officer shall have the right to attend meetings of the Board of
Managers as a non-voting participant. 
  
 7.12.2 Duties and
Powers of the Chief Executive Officer. The Chief Executive Officer of the Company shall, subject to the control of the Board of Managers, have general supervision, direction and control of the day-to-day affairs of the Company and shall report
directly to the Board of Managers. Unless limited by the Board of Managers or this Agreement, he or she shall have the general powers and duties of management usually vested in the office of chief executive officer of corporations and shall have
such other powers and duties as may be prescribed by the Board of Managers. In the absence or disability of the Chief Executive Officer, an Officer designated by the Board of Managers, shall perform all duties of the Chief Executive Officer.

  
 7.12.3 Other Officers; Employment; Removal. The Company
may also employ a chief financial officer (“Chief Financial Officer”), a secretary (“Secretary”) and such other officers as elected by the Board of Managers, each of whom will be accountable to the Chief Executive
Officer (the Chief Executive Officer, Chief Financial Officer, the Secretary and any other officers elected in accordance with this Section 7.12.3, each, an “Officer” and collectively, the “Officers”). All Officers
and the Chief Executive Officer shall be employed directly by the Company, except where AMD and Fujitsu agree in writing on a case-by-case basis that such Officer should be employed by either AMD or Fujitsu, in which case such Officer will be
assigned to the Company through secondment or other arrangements, as agreed upon by AMD and Fujitsu. The Chief Executive Officer and any other Officer may be removed at any time upon an affirmative vote of the majority of the Board of Managers.

  
 7.12.4 Duties and Powers of Chief Financial Officer.
The Chief Financial Officer of the Company (a) shall have the custody of the corporate funds and securities of the Company, (b) shall keep and maintain, or cause to be kept and maintained, books and records of accounts of the properties and business
transactions of the Company, including accounts of its assets, liabilities, receipts, disbursements, gains, losses and capital and (c) shall deposit all moneys and other valuable effects in the name and to the credit of the Company in such
depositories as may be designated by the Board of Managers. He or she shall disburse the funds of the Company as may be ordered by the Board of Managers and shall render to the Board of Managers at their request an account of all his or her
transactions as Chief Financial Officer and of the financial condition of the Company. The books of account shall at all reasonable times be open to inspection by any Manager. 
  

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 7.12.5 Duties and Powers of Secretary. 
  
 (a) The Secretary shall attend (in person or by telephone conference) all
meetings of the Board of Managers and all meetings of the Members (whether any of such meetings are in person, by telephone conference or both) and record all votes and the minutes of all proceedings in a book to be kept for that purpose, and shall
perform like duties for any standing committees when requested by such committee. He or she shall give, or cause to be given, notice of all meetings of the Members and of the Board of Managers and shall perform such other duties as may be prescribed
by the Board of Managers. 
  
 (b) The Secretary shall keep, or
cause to be kept, at the principal executive office or at the office of the Company’s transfer agent or registrar, as determined by resolution of the Board of Managers, a register, or a duplicate register, showing the names of all Members and
their addresses, Economic Interests and voting interests, the number and date of certificates issued for the same (if any), and the number and date of cancellation of every certificate surrendered for cancellation (if any). The Secretary shall also
keep all documents as may be required under the Act. 
  
 7.12.6
General Provisions Regarding Officers. 
  
 (a) The Board
of Managers may, from time to time, designate Officers of the Company and delegate to such Officers such authority and duties as the Board of Managers may deem advisable and may assign titles (including, without limitation, president, vice-president
and/or treasurer) to any such Officer. Unless the Board of Managers otherwise determines, if the title assigned to an Officer of the Company is one commonly used for Officers of a business corporation formed under the DGCL, then, subject to the
terms of this Agreement, the assignment of such title shall constitute the delegation to such Officer of the authority and duties that are customarily associated with such office pursuant to the DGCL. Any number of titles may be held by the same
Officer. 
  
 (b) Subject to all rights, if any, under any
contract of employment, any Officer to whom a delegation is made pursuant to the foregoing shall serve in the capacity delegated unless and until such delegation is revoked by the Board of Managers for any reason or no reason whatsoever, with or
without cause, or such Officer resigns. 
  
 (c) No Officer needs
to be a resident or citizen of the United States. 
  
 (d) The
only fiduciary duties an Officer of the Company owes to the Company and the Members are duties a similar officer of a Delaware corporation would have under the DGCL, as interpreted by Delaware courts. 
  

	 	
7.13	 	Information Technology Steering Committee 

  
 The Company will establish an IT Steering Committee (the “IT Steering Committee”). The general purposes of the IT Steering Committee
shall be: (1) to determine the Company’s overall information technology (“IT”) program; (2) to approve the Company’s IT 
  

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plans and budgets; and (3) to coordinate and track the Company’s IT activities. On an annual basis, the IT Steering Committee shall provide to the Board
of Managers an analysis and breakdown in reasonable detail of all IT costs incurred during the previous annual period, including a description of the amount of IT costs attributable to each of the following categories: Capex, R&D, G&A and
cost of goods sold. The IT Steering Committee will include the Company’s information services manager, appropriate executives from Material Company Entities and such other Company employees as the Company may choose. AMD and Fujitsu may each
appoint a non-voting advisory representative to the IT Steering Committee to advise the Company on IT issues; however, all final IT determinations will be made by the IT Steering Committee, subject to approval by the Board of Managers. 

 

	 	
7.14	 	Personnel 

  
 7.14.1 Company Employees; Return. All employees shall be employed by the Company, unless both AMD and Fujitsu agree in writing on a case-by-case
basis that such employee should be employed by either AMD or Fujitsu, then such employee shall be assigned to the Company through secondment or other arrangements, as agreed upon in writing by AMD, Fujitsu and the Company. Any Fujitsu employee
permanently transferred to the Company may return to the employ of Fujitsu upon the written agreement of both the Company and Fujitsu, and any AMD employee permanently transferred to the Company may return to the employ of AMD upon the written
agreement of both the Company and AMD, provided, however, that the re-employment of any Officer of the Company or other personnel of the Company that reports directly to the Chief Executive Officer or the Board of Managers shall
require the approval of the Company, AMD and Fujitsu. 
  
 7.14.2
Certain FASL (Japan) Employees. With respect to certain employees of FASL (Japan) who are engineers, the Company may transfer selected engineers from FASL (Japan) to the Company and vice versa, such transfers being either temporary or
permanent. 
  
 7.14.3 Standards of Business Conduct. For as
long as AMD Member’s Percentage Interest is at least fifty percent (50%), the Company will use its reasonable efforts to cause its employees and the employees of its subsidiaries to comply with AMD’s Worldwide Standards of Business
Conduct. 
  

	 	
7.15	 	Human Resources Council 

  
 The Company shall, and shall cause each other Company Entity to, have compensation and benefits programs at its locations consistent with local practices.
Incentive compensation programs for Company Entity employees will be tied to the Company’s financial success and approved by the Board of Managers. The Company will form a human resources council (the “HR Council”), consisting
of senior human resource employees from each of the Company’s locations (including, with respect to Japan, at least one former Fujitsu employee who was, before his or her transfer to the Company, situated in Japan). The HR Council shall:

  
 7.15.1 be headed by an executive of the Company who will
report and be directly accountable to the Chief Executive Officer; 
  

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 7.15.2 plan and implement headcount, budget, performance management systems, compensation and benefits
programs and other human resource programs and systems as needed for the Company Entities, all in a manner generally and reasonably consistent with local practices; 
  
 7.15.3 consult with the Members in establishing the working terms and conditions (including a promotion approval matrix) for
Transferred Employees, including the consideration and adoption of any changes to compensation and benefit plans or arrangements provided by Fujitsu to the Transferred Employees immediately prior to the transfer of employment to a Company Entity;

  
 7.15.4 for so long as any Transferred Employee continues to be
entitled to participate in any of the benefits provided by Fujitsu to such Transferred Employee immediately prior to the transfer of employment to a Company Entity, consult with Fujitsu regarding the matters referred to in Sections 7.15.3 and
7.15.5; and 
  
 7.15.5 consult with the Members on such other
matters as may be agreed by the Members in writing. 
  

	 	
7.16	 	Stock Option Plan 

  
 7.16.1 Stock Option Plans. Any stock option plans involving AMD shares will be financed by the Company. The Company will pay cash to AMD for the
value of stock options granted by AMD to employees of a Company Entity. The value of such stock options will be calculated using the Black-Scholes valuation method using assumptions mutually agreed to by AMD Member and Fujitsu Member as soon as
reasonably practicable following the Launch Date and adjusted thereafter as reasonably necessary and as reasonably agreed to by AMD Member and the Company and, during the 4-Year Period, with the consent of Fujitsu Member, which consent shall not be
unreasonably withheld or delayed (the “Black-Scholes Value”). The Black-Scholes Value of such stock options payable by the Company to AMD shall initially be reduced by fifteen (15%) percent (the “Discounted Black-Scholes
Value”) to take into account the likelihood that optionees of a Company Entity will forfeit and/or fail to exercise a certain number of the stock options issued by AMD. AMD Member and Fujitsu Member shall meet on or about June 30 each year
to consider adjustments to the payments made to AMD for stock options granted by AMD to employees of a Company Entity. Factors for adjustments to such payments to AMD include, but are not limited to, the employee turnover rate at a Company Entity,
the accounting and tax treatment of the option grants and payments to AMD and the method for determining the value of the AMD stock options. The Company will pay AMD the Discounted Black-Scholes Value of a stock option in sixteen (16) equal
quarterly installments plus interest at the applicable federal rate determined in accordance with Section 1274(d) of the Code. The payment of such quarterly installments shall commence on the last day of the quarter following the quarter in which
the stock option was granted. AMD will consult with the HR Council with respect to stock option grants and will consider the following factors when considering stock option grants: 
  

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 (a) whether the eligible employee is U.S.-based or Japan-based, it being understood that U.S.-based
employees may receive a greater number of options than equivalent Japan-based employees, provided, however, that Japan-based executives at the level of Corporate Director and above will be eligible to receive the same number of stock options as
their U.S.-based counterparts; and 
  
 (b) that all eligible
employees on the U.S. payroll at a similar level of employment will have an equitable opportunity to receive option grants, regardless of whether the employee previously worked for AMD, FASL (Japan) or Fujitsu; 
  
 provided, however, that the actual grant to any employee will reflect such
employee’s individual performance. 
  
 7.16.2 Merger or
Acquisition of the Company or AMD. 
  
 (a) In the event of
any merger, acquisition, consolidation or similar transaction to which the Company is a party (a “Company Transaction”) and in which the AMD stock options issued to Company Entity employees are assumed by a successor entity pursuant
to the Company Transaction, the Company shall pay any remaining installments of the Discounted Black-Scholes Value of the options to such successor entity rather than AMD on the same terms and at the same times as set forth in Section 7.16.1.

  
 (b) In the event of any merger, acquisition, consolidation or
similar transaction to which AMD is a party (an “AMD Transaction”) and in which the AMD stock options issued to Company Entity employees are assumed by a successor entity pursuant to the AMD Transaction, the Company shall pay any
remaining installments of the Discounted Black-Scholes Value of the options to such successor entity rather than AMD on the same terms and at the same times as set forth in Section 7.16.1. 
  
 (c) If, in connection with a Company Transaction or an AMD Transaction, the
AMD stock options terminate, notwithstanding Section 7.16.1 above, the Company shall not be required to pay any remaining installments of the Discounted Black-Scholes Value of such terminated options to AMD or to any other Person. 
  
 7.16.3 Stock Option Allocation. Within thirty (30) days after the
Launch Date, AMD shall grant AMD stock options to certain of the employees of the Company and other Company Entities including those who previously worked for Fujitsu and FASL (Japan). Without limiting the generality of the foregoing, such AMD stock
options to be issued to such employees ranking at levels equal to and above manager shall be based on the allocation schedules set forth on Exhibit G-1 and Exhibit G-2. 
  

	 	
7.17	 	Maintenance of Insurance 

  
 7.17.1 During the term of the Company, the Company shall maintain (and shall maintain on behalf of each other Company Entity or shall cause each other
Company Entity to maintain on its own behalf), with financially sound and reputable insurers, customary levels of 
  

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workers’ injury general liability insurance, automobile liability insurance and property damage insurance naming the Company, Fujitsu and AMD (and their
applicable Affiliates) as “Additional Insureds” thereunder and other insurance with respect to liabilities, losses or damage to the assets, properties and businesses of the Company and the other Company Entities as would be customarily
carried or maintained under similar circumstances by entities of established reputation engaged in similar businesses, in each case in such amounts, with such deductibles, covering such risks and otherwise on such terms and conditions as are
customary for entities engaged in similar businesses. Within thirty (30) days after the Launch Date and on an annual basis thereafter at least ten (10) days prior to each policy anniversary, the Company shall furnish the Members with (a)
certificates of insurance or binders, in a form reasonably acceptable to all of the Members, evidencing all of the insurance required by the provisions of this Section 7.17 and (b) a schedule of the insurance policies held by or for the benefit of
the Company Entities. Upon request, the Company will promptly furnish either of the Members with copies of all insurance policies, binders and cover notes or other evidence of such insurance relating to the insurance required to be maintained by the
Company Entities. The schedule of insurance shall include the name of the insurance company, policy number, type of insurance, major limits of liability and expiration date of the insurance policies. Within thirty (30) days after the Launch Date,
the Company shall provide to each of the Members a certificate from the Company’s insurance broker or other evidence satisfactory to them that all insurance required to be maintained pursuant to this Section 7.17 is in full force and effect and
that each of the Members has been named as a “Additional Insured” thereunder. 
  
 7.17.2 The Company shall maintain (and shall maintain on behalf of each other Company Entity or shall cause each other Company Entity to maintain on its own behalf) with financially sound and reputable insurers,
overseas travel insurance and special event personal injury insurance. 
  

	 	
7.18	 	Inspections and Proceedings 

  
 In the event that (a) any of the Company’s (or any other Company Entities’) plants are subject to inspection by any Governmental Authority, (b)
any material action, suit, claim, hearing, arbitration, proceeding (public or private), audit or investigation is brought by or against any Company Entity, (c) there is a recall of any of the Company’s products, or (d) the Company receives any
default or demand notice relating to any material debt obligation of the Company or under any other material contract of the Company, the Company shall provide prompt written notice of any such events to each of the Members. 
  

	 	
7.19	 	Confidential Information 

  
 7.19.1 Obligations. The parties acknowledge and agree that all proprietary or nonpublic information disclosed by one party (the “Disclosing
Party”) to another party (the “Receiving Party”) in connection with the Transaction Documents (as defined in the Contribution Agreement), directly or indirectly, which information is (a) marked as “proprietary” or
“confidential” or, if disclosed orally, is designated as confidential or proprietary at the time of disclosure and reduced in writing or other tangible (including electronic) form that includes a prominent confidentiality notice and
delivered to the Receiving Party within thirty (30) days of 
  

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information subject to the confidentiality request. Omissions are designated as ****. A complete version of the exhibit has been filed separately with the Securities and Exchange Commission. 

 
disclosure, or (b) provided under circumstances reasonably indicating that it constitutes confidential and proprietary information, constitutes the
confidential and proprietary information of the Disclosing Party (“Confidential Information”). The Receiving Party may disclose Confidential Information only to those employees who have a need to know such Confidential Information
and who are bound to retain the confidentiality thereof under provisions (including provisions relating to nonuse and nondisclosure) no less restrictive than those required by the Receiving Party for its own confidential information. The Receiving
Party shall, and shall cause its employees to, retain in confidence and not disclose to any third party (including any of its sub-contractors) any Confidential Information without the Disclosing Party’s express prior written consent, and the
Receiving Party shall not use such Confidential Information except to exercise the rights and perform its obligations under this Agreement. Without limiting the foregoing, the Receiving Party shall use at least the same procedures and degree of care
which it uses to protect its own confidential information of like importance, and in no event less than reasonable care. The Receiving Party shall be fully responsible for compliance by its employees with the foregoing, and any act or omission of an
employee of the Receiving Party shall constitute an act or omission of the Receiving Party. The confidentiality obligations set forth in this Section 7.19.1 shall survive any dissolution of the Company and/or termination of this Agreement.

  
 7.19.2 Exceptions. Notwithstanding the foregoing,
Confidential Information will not include information that: (a) was already known by the Receiving Party, other than under an obligation of confidentiality to the Disclosing Party or any third party, at the time of disclosure hereunder, as evidenced
by the Receiving Party’s tangible (including written or electronic) records in existence at such time; (b) was generally available to the public or otherwise part of the public domain at the time of its disclosure to the Receiving Party
hereunder; (c) became generally available to the public or otherwise part of the public domain after its disclosure other than through any act or omission of the Receiving Party in breach of this Agreement; (d) was subsequently lawfully disclosed to
the Receiving Party by an Entity or person other than the Disclosing Party not subject to any duty of confidentiality with respect thereto; or (e) was developed by the Receiving Party without reference to any Confidential Information disclosed by
the Disclosing Party, as evidenced by the Receiving Party’s tangible (including written or electronic) records in existence at such time. 
  
 7.19.3 Tax Information. Notwithstanding the foregoing or anything to the contrary in this Agreement or in any other written or oral understanding
or agreement to which the parties hereto are parties or by which they are bound, each Member or its Affiliates shall be permitted to disclose the tax treatment and tax structure of the Company effective on the Launch Date. This permission to
disclose includes the ability of each Member or its Affiliates to consult, without limitation of any kind, any tax advisor regarding the tax treatment or tax structure of the Company. This provision is intended to comply with Section
1.6011-4(b)(3)(ii)(B) of the Regulations and shall be interpreted consistently therewith. The Members acknowledge that this written authorization does not constitute a waiver by any party of any privilege held by such party pursuant to the
attorney-client privilege or the confidentiality privilege of Code Section 7525(a). 
  

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7.20	 	Other Activities 

  
 Except as otherwise provided in the Non-Competition Agreement, the Members, their respective Affiliates and the Managers may engage or invest in, and
devote their time to, any other business venture or activity of any nature and description (independently or with others), whether or not such other activity may be deemed or construed to be in competition with the Company. Neither the Company nor
any Member, Affiliate of a Member, or Manager shall have any right by virtue of this Agreement or the relationship created hereby in or to such other venture or activity of any Member or its Affiliates (or to the income or proceeds derived
therefrom), and the pursuit thereof, even if competitive with the business of the Company, shall not be deemed wrongful or improper so long as such pursuit is not in violation of the Non-Competition Agreement. 
  
 
ARTICLE 8. 
 OPERATIONS 
  

	 	
8.1	 	4-Year Operations Plan; Annual Budget 

  
 8.1.1 Formulation and Approval. The Company will operate in accordance with a rolling four (4)-year Operations Plan (the “4-Year Operations
Plan”), which Plan shall be initially developed and agreed upon by Fujitsu and AMD, and amended from time to time by the Company and in no event less than annually in order to ensure that the Plan covers, at the end of each Fiscal Year
looking forward, a four (4)-year period. The Board of Managers will be responsible for approving an annual budget (the “Annual Budget”) presented by Officers of the Company on an annual basis. Officers of the Company will also
present to the Board of Managers on a quarterly basis a rolling quarterly operating plan (the “Rolling Quarterly Plan”) of at least six (6) fiscal quarters, the first four (4) fiscal quarters thereof to be consistent in all material
respects with the Annual Budget when such first four (4) fiscal quarters are the same as those covered in the Annual Budget. The Rolling Quarterly Plan shall be prepared in a manner consistent with the Company’s financial statements and GAAP.
Each of the Annual Budget and the Rolling Quarterly Plan shall describe the financing, research and development, general and administrative and marketing activities for the relevant time period covered. 
  
 8.1.2 Expenditures Requiring Approval. The following Company
expenditures shall require approval by the Board of Managers: 
  
 (a) any Capex which would cause any specific sub-category of capital expenditures set forth in the Annual Budget to be exceeded by more than ten million dollars (U.S.$10,000,000); and 
  
 (b) any expenditure which would cause the aggregate amount spent during any
Fiscal Year on any Capex, G&A cost or R&D costs to exceed the amounts budgeted therefor by greater than ten percent (10%). 
  

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8.2	 	Headquarters 

  
 The Company’s world headquarters shall initially be in Sunnyvale, California. 
  

	 	
8.3	 	Wafer Fabrication 

  
 The Company shall initially conduct wafer fabrication at Fab 25 in Austin, Texas. In addition, FASL (Japan) will initially conduct wafer fabrication by
contract to the Company at JV1, JV2 and JV3. 
  

	 	
8.4	 	Assembly, Test, Marking and Packaging 

  
 The Company’s wholly owned subsidiaries in Thailand, Malaysia and China shall initially conduct assembly, test, mark and pack by contract to the
Company. 
  

	 	
8.5	 	Product Design 

  
 The Company shall initially conduct product design and development work at facilities located in Sunnyvale, California and Austin, Texas; the
Company’s wholly owned subsidiaries or Affiliates of the Members in Penang, Malaysia, Hong Kong, and Tokyo and Kozoji, Japan shall initially conduct product design and development work by contract to the Company. 
  

	 	
8.6	 	Contracting; Transactions Between Company and Members. 

  
 8.6.1 Company Option. The Company may, at its option, contract to its subsidiaries or to AMD and/or Fujitsu (or their respective Affiliates) on a
cost-plus basis any business operations of the Company, including (a) wafer fabrication, (b) other manufacturing processes, (c) assembly, test, mark and pack and (d) research and development. The Company may also, at its option, contract to AMD or
Fujitsu or their respective Affiliates other activities agreed upon by the Company and AMD or Fujitsu or their respective Affiliates, on a cost-plus basis, including certain types of package research and development, module and integration research
and development, and various administrative functions, such as payroll, IT, legal, financial reporting and tax. The Company may also engage third party contractors in its discretion. 
  
 8.6.2 Contract Terms. Without limiting Sections 7.7 and 7.8: 
  
 (a) the terms of any contract, agreement or arrangement into which the
Company enters will be determined between the Company and the respective counter-party(ies); 
  
 (b) the terms of any contract, agreement or arrangement between any Company Entity, on the one hand, and any other Company Entity, a Member, or any Affiliate of a Member, on the other hand, shall be on an arm’s
length basis; 
  
 (c) any contracts, agreements or arrangements
between (i) any Company Entity and AMD or an Affiliate of AMD on the one hand, and (ii) any Company Entity 
  

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and Fujitsu or an Affiliate of Fujitsu on the other hand, that are of a similar nature shall be on substantially similar terms, unless there is a reasonable
commercial basis for any difference, such as differing purchase volumes or other reasonable commercial differences; and 
  
 (d) in no event shall any counter-party to a contract, agreement or arrangement be permitted to enter into contracts, agreements or arrangements on
behalf of, or otherwise legally bind or act in a manner that is legally binding on, the Company. 
  
 (e) any contracts, agreements or arrangements between any Company Entity, on the one hand, and AMD or an Affiliate of AMD or Fujitsu or an Affiliate of
Fujitsu, on the other hand, or any amendment, supplement or other modification thereof or thereto, shall in each case be subject to the approval of the Board of Managers. 
  

	 	
8.7	 	Access to Company Facilities 

  
 AMD or Fujitsu may gain access to the Company’s facilities and assets (and the Company shall cause the other Company Entities to provide such access)
in the course of their businesses, on a case-by-case basis, subject to arrangement with the Company and approval by the Board of Managers and subject to Section 7.19. 
  

	 	
8.8	 	Inventory 

  
 An appropriately designated employee of the Company shall have responsibility for managing the Company’s inventory and shall manage such inventory in
a manner that is consistent with prudent business operations and cash management. Notwithstanding anything to the contrary in the foregoing, the Company’s overall target unit inventory will be the amount of product in the process of being
manufactured and the amount of finished product (including products consigned to a distributor) which have an aggregate value determined in accordance with the Company’s standard accounting practices that does not exceed the aggregate
manufacturing cost determined in accordance with the Company’s standard accounting practices of products set forth in the Company’s written product forecasts, taking into account the Distributors’ written forecasts, for the **** (the
“Target”), provided that the Company may create variances from the Target based on various factors, including, without limitation, extraordinary circumstances relating to demand shortfalls or opportunities, quick-turnaround
business, obsolete or customized product, product warranty returns or stock rotation and die-bank reserve (“Variances”). An appropriately designated employee of the Company will report on the existing inventory level to the Board of
Managers from time to time as part of its normal financial reporting activities, but in no event less frequently than quarterly. As part of such reports, if any Variance exists, such employee shall explain such Variance to the Board of Managers, and
the Board of Managers may request that the Company take corrective action that it deems to be consistent with prudent inventory management (and taking into account the financial impact on the Company). In the event that any Variance (constituting
excess inventory) is greater than **** of the Target, such employee shall recommend action to the Board of Managers designed to eliminate such Variance, and the Board of Managers shall (a) in good faith require that the Company take action designed
to eliminate such Variance (which 
  

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may, but shall not be required to, include the actions recommended by an appropriate Officer), and (b) take any other action the Board of Managers deems
appropriate. 
  

	 	
8.9	 	Quarterly Beginning Plan 

  
 The Company, using as a basis the Forecasts (as defined in the AMD Distribution Agreement and the Fujitsu Distribution Agreement (the
“Distribution Agreements”)) by the Distributors, shall forecast and plan production quarterly for the current fiscal quarter and the subsequent five (5) fiscal quarters. The outcome of this forecasting and planning process shall be
referred to as the “Quarterly Beginning Plan” or “QBP”. 
  
 8.9.1 At least seventy-five (75) days prior to the beginning of each fiscal quarter, the Company shall develop and provide each Distributor with a forecasting template (the “Quarterly Beginning Plan
Template” or “QBP Template”) in a form to be agreed by the Company and each Distributor, which sets forth the Company’s Products (as defined in the Distribution Agreements) for each Technology (as defined in the
Distribution Agreements) for such fiscal quarter and each of the subsequent five (5) fiscal quarters. The Company may modify the QBP Template in reasonable respects. 
  
 8.9.2 The QBP shall be developed as follows: (i) on or before the end of the last week of the first month of each fiscal
quarter, each Distributor shall complete the QBP Template and provide the Company with a non-binding forecast of its projected Product needs for each of the five (5) fiscal quarters following such fiscal quarter (collectively, the “Parent
Forecasts”); (ii) promptly after the Company receives the Parent Forecasts, the Company will organize each of the Parent Forecasts on a Technology-by-Technology basis and to reflect a forecast for each Product within a particular
Technology; (iii) the Company shall use the Parent Forecasts and the Product allocation rules, as described in the Distribution Agreements, to produce a preliminary QBP using commercially reasonable efforts to utilize available and approved
incremental capacity to meet the Parent Forecasts; and (iv) if a Distributor fails to submit the forecast in a timely manner Company shall be under no obligation to consider such Distributor’s forecast in the QBP. 
  
 8.9.3 The preliminary QBP shall be distributed as soon as is practical to the
Distributors for review and comment. If no comments are received within ten (10) Business Days after the distribution of the preliminary QBP, the preliminary QBP shall be deemed adopted. 
  
 8.9.4 If requested by either Distributor, the Company shall meet with the Distributors (jointly or separately) as soon
thereafter as is reasonably practical, at a time and location to be mutually agreed by each Distributor and the Company, to discuss the preliminary QBP to resolve any conflicts regarding Parent Forecasts in light of the Company’s then-current
estimates of production capacity (taking into account the Company’s then-current estimates of wafer yield, die yield, cycle time and production capacity, which estimates shall be provided to the Distributors, on a on a Technology-by-Technology
basis, at least ten (10) days prior to such meeting) for each of the succeeding five (5) fiscal quarters. At these meetings, each Distributor may (i) submit a revised demand Forecast which prioritizes such Distributor’s Product demand

  

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within such Distributor’s Product allocations as set forth in its respective Distribution Agreement or (ii) request additional Capacity as set forth in
its respective Distribution Agreement. The Company may request each Distributor to provide specific documentation to support the requested change in either (i) or (ii) above, which each Distributor shall reasonably provide. The Company shall
consider any requests and supporting documentation of the Distributors in the revision to the preliminary QBP. The Company shall have sole responsibility in the determination of the final QBP. 
  
 8.9.5 Thereafter, and in any event at least fifteen (15) days before the end
of such fiscal quarter, the Company shall present the final QBP developed as provided above to the Board of Managers for approval. 
  
 8.9.6 Nothing in this Section 8.9 shall be deemed to modify in any respect the Product allocation rights and rules set forth in the Distribution
Agreements. 
  

	 	
8.10	 	Branding 

  
 Each product sold by the Company will have a single product brand and logo, regardless of whether such product is sold by AMD, Fujitsu or any other
distributor or sales representative appointed by the Company in accordance with Sections 2.2 and 14 of the Fujitsu Distribution Agreement or Sections 2.2 and 14 of the AMD Distribution Agreement. The Company will coordinate product branding and logo
activities with the branding activities of Fujitsu and AMD. Subject to the foregoing, the Company shall have sole responsibility for all product branding matters. The Company will bear all of its costs and expenses incurred in connection with
Product branding. 
  

	 	
8.11	 	FASL (Japan) 

  
 8.11.1 FASL (Japan) Purpose. During the 4-Year Period, the Company shall cause FASL (Japan)’s headquarters to be in Tokyo and FASL
(Japan)’s functions to include: (a) marketing (for Japan and Asia in coordination with the Company’s marketing personnel); (b) manufacturing (for the world-wide market); (c) research and development (for the world-wide market); and (d)
administrative. 
  
 8.11.2 President. FASL (Japan) shall
have one (1) president or similarly titled executive officer, who shall (a) be the chief executive officer of FASL (Japan), (b) have the authority and responsibility of a representative director (daihyou torishimariyaku) under the Japanese
Commercial Code and (c) be responsible for the day-to-day operations of FASL (Japan), including with respect to employment related matters. Such executive officer shall also be appointed as an Executive Officer of the Company, and in such capacity
shall be invited to attend Company meetings involving all of the Officers. Such executive officer shall initially be selected by Fujitsu and, for so long as Fujitsu holds at least a 30% Membership Interest, the Company shall cause the appointment of
any successor thereto to be subject to the approval of Fujitsu, which approval shall not be unreasonably withheld or delayed. 
  

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ARTICLE 9. 
 DISPOSITION AND TRANSFERS OF INTERESTS 
  

	 	
9.1	 	Holding of Membership Interest 

  
 For so long as AMD or Fujitsu, directly or indirectly, maintains a Membership Interest in the Company, AMD or Fujitsu, as applicable, must own and hold
such Membership Interest either (a) itself or (b) through one or more wholly owned (including indirect wholly owned) subsidiaries. 
  

	 	
9.2	 	Transfer Moratorium 

  
 Except with respect to a breach of this Agreement as provided for in Section 10.6.2(a), until the expiration of ****, no Member may Transfer all or any
portion of its Membership Interest to any other Person, nor shall AMD or Fujitsu sell or transfer, or allow to be sold or transferred, or in any way dispose of its ownership interest, either direct or indirect, of any wholly owned subsidiary
(including any wholly owned indirect subsidiary) that owns, directly or indirectly, the Membership Interests held by AMD Member or Fujitsu Member, respectively; provided, however, that in the event that Fujitsu or AMD experiences a Change in
Control at any time before the expiration of ****, such restrictions shall cease to apply to AMD Member (in the case of a Change in Control of Fujitsu) or Fujitsu Member (in the case of a Change in Control of AMD) and the applicable Member shall
have the immediate right to Transfer any portion of its Membership Interest (whether by directly Transferring such portion of its Membership Interest, or by selling, transferring or otherwise disposing of its ownership interest of any wholly owned
subsidiary (including wholly owned indirect subsidiaries) that owns, directly or indirectly, such portion of its Membership Interest)), in accordance with the procedures set forth in Section 9.3. 
  

	 	
9.3	 	Transfers 

  
 After the expiration of **** or to the extent otherwise permitted under Section 9.2, a Member may Transfer any portion of its Membership Interest to any
other Person, subject to this Section 9.3. In addition, together with any Transfer of any Membership Interests to any Person in accordance with this Section 9.3, a Member may Transfer to such Person a portion of its interest in any promissory note
(whether or not convertible) issued to such Member by the Company, provided that such portion does not exceed the portion of such Member’s Membership Interest Transferred to such Person at such time. 
  
 9.3.1 Valuation Request. A Member wishing to Transfer all or part of
its Membership Interest (a “Transferring Member”) must provide a notice to the other Member requesting a valuation of the Company (the “Valuation Request”). Promptly following such request, the Members shall jointly
obtain both an Initial Public Offering (market value) valuation (“IPO Valuation”) and a Discounted Cash Flow valuation (“DCF Valuation” and, together with the IPO Valuation, the “Valuations”), in
accordance with this Section 9.3, the costs of which shall be shared equally between the Members; provided, however, in the event that the Transferring Member determines, after receipt of the last completed Valuation, not to Transfer

  

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all or part of its Membership Interest pursuant to the process set forth in this Section 9.3, such requesting Member shall bear the entire cost of the
Valuations. 
  
 9.3.2 IPO Valuation. Within ten (10) days
from the date of receipt of the Valuation Request, each Member shall provide the other Member with a list of the names of any investment banks, accounting firms or valuation specialists hired or used by such Member or its Affiliates (including for
this purpose, in the case of AMD Member, any Company Entity) for valuation of the Company or a material portion of its assets at any time after the date commencing twelve (12) months prior to the Launch Date and continuing through the Valuation
Request date. Within fifteen (15) days from the date of receipt of the Valuation Request, the Members shall mutually select a Qualified Valuator to conduct the IPO Valuation. Each Member shall use reasonable efforts to cause the IPO Valuation to be
completed within thirty (30) days following the selection of the Qualified Valuator. The Qualified Valuator shall only have a minimal role (or no role) in any Initial Public Offering of the Company’s shares which results from the sale process
set forth in this Section 9.3. The IPO Valuation shall be based, among other things, upon the then-current 4-Year Operations Plan, which shall be updated by the Company in order to take into account (a) changes in market conditions, (b)
management’s best assessment of the Company’s prospects at the time of the Valuation Request, (c) the impact on the business of the Transferring Member reducing its Percentage Interest and (d) the costs that would need to be incurred by
the Company in order to make the Company a stand alone entity. The Qualified Valuator shall finalize a price range on a per-share basis for the Membership Interests of the Company (assuming an offering size of at least one hundred million dollars
(U.S.$100,000,000) in gross proceeds) that could reasonably be expected to be obtained in an Initial Public Offering of the Company’s shares, and shall submit to each Member a formal valuation opinion that has been approved by the Qualified
Valuator’s valuation/fairness committee. For purposes of this Section 9.3, the per share valuation amount of the IPO Valuation shall be the low-point of the Qualified Valuator’s price range. Also for purposes of this Section 9.3, the term
“share” as used herein refers to the applicable Unit (or a share of equity securities if the Company were converted from a limited liability company to a corporation). 
  
 9.3.3 Discounted Cash Flow Valuation. Within fifteen (15) days from the date of receipt of the Valuation Request, the
Members shall mutually select a Qualified Valuator, different than the Person selected to perform the IPO Valuation in Section 9.3.2, to conduct the DCF Valuation. Each Member shall use reasonable efforts to cause the DCF Valuation to be completed
within thirty (30) days following the selection of the Qualified Valuator. The DCF Valuation shall be based, among other things, upon the then-current 4–Year Operations Plan (which shall have been updated by the Company in accordance with
Section 9.3.2). The DCF Valuation shall finalize a valuation range on a per share basis for the Membership Interests of the Company, and shall submit to each Member a formal valuation opinion that has been approved by the Qualified Valuator’s
valuation/fairness committee. For purposes of this Section 9.3, the per share valuation amount of the DCF Valuation shall be the low-point of the Qualified Valuator’s valuation range. 
  

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 9.3.4 Review Period. Both Valuations shall be provided to each Member. The Transferring Member
shall have a period of thirty (30) days from receipt of the last completed Valuation in which to review the Valuations, and determine whether it wishes to Transfer all or any part of its Membership Interest. 
  
 9.3.5 Offer. If the Transferring Member decides to sell all or any
part of its Membership Interest, then within the thirty (30)-day period referred to in Section 9.3.4, the Transferring Member shall provide a written notice (the “Offer Notice”) to the Non-Transferring Member setting forth the
Transferring Member’s binding offer to sell all or a part of its Membership Interest to the Non-Transferring Member. The Offer Notice shall include the following: (a) the number of Units that the Transferring Member desires to sell (the
“Transfer Shares”); and (b) the lower of the IPO Valuation per share valuation amount and the DCF Valuation per share valuation amount, as each such amount is determined in accordance with Sections 9.3.2 and 9.3.3 (the
“Valuation Amount”). 
  
 9.3.6 Right of First
Refusal. The Non-Transferring Member will have the right, for a period of sixty (60) days following the receipt of the Offer Notice, to elect to purchase the Transfer Shares at a per share price equal to the Valuation Amount (the “Right of
First Refusal”). The Non-Transferring Member may assign this Right of First Refusal in whole or in part to a third party, provided that such third party must also exercise such assigned Right of First Refusal within such sixty (60)-day
period. In the event that the third-party assignee exercises such Right of First Refusal within such sixty (60)-day period, such assignee shall complete the purchase of the Transfer Shares on the same terms and subject to the same conditions as the
Non-Transferring Member; provided, however, that in no event shall the Transferring Member be obligated to offer financing in accordance with Section 9.3.8 to a third-party assignee. If the Non-Transferring Member and/or its assignee
elect(s) to exercise the Right of First Refusal, it/they shall provide written notice to the Transferring Member within such sixty (60)-day period and shall consummate the purchase of the applicable Transfer Shares as promptly as practicable
thereafter. 
  
 9.3.7 Manner of Exercise. The Right of
First Refusal must be exercised by the Non-Transferring Member and/or its assignee(s) with respect to all or none of the Transfer Shares that represent up to and including ten percent (10%) of the outstanding shares of the Company. If the Transfer
Shares constitute more than ten percent (10%) of the Company’s outstanding shares, then, if exercised, the Right of First Refusal must be exercised by the Non-Transferring Member and/or its assignee(s) with respect to no less than the portion
of the Transfer Shares that constitutes ten percent (10%) of the Company’s outstanding shares. To the extent that the Non-Transferring Member and/or its assignee(s) elect(s) to not exercise the Right of First Refusal, the Transferring Member
shall have the right, but not the obligation, to sell the unsubscribed Transfer Shares pursuant to one of the methods described in Sections 9.3.9 or 9.3.10 below. For purposes of this Section 9.3.7, the percentage of outstanding shares being sold
shall be the quotient obtained by dividing (a) the sum of the Transfer Shares being offered for sale plus all shares sold previously by the Transferring Member during a rolling two (2) year period measured from the date of the Valuation Request,
by (b) the number of shares outstanding on the date of the Offer Notice. 
  

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 9.3.8 Financing. The Transferring Member shall be required, at the Non-Transferring Member’s
request, to finance **** of the Non-Transferring Member’s aggregate purchase price of any Transfer Shares that represent in excess of five percent (5%) of the total number of shares of the Company outstanding as of the date of the Offer Notice.
For the avoidance of doubt, the Transferring Member shall not be required to finance any portion of the aggregate purchase price paid for the Transfer Shares by any third-party assignee who has elected to purchase some or all of the Transfer Shares
in accordance with Section 9.3.6. In addition, in the event that the Transferring Member has previously Transferred shares, once the Transferring Member has cumulatively transferred to the Non-Transferring Member (but not its assignee) an amount of
its Membership Interest that constitutes five percent (5%) of the Company’s outstanding shares, all subsequent transfers of additional shares by the Transferring Member to the Non-Transferring Member shall be subject to the financing provisions
set forth in this Section 9.3.8. Financing shall be in the form of a three (3)-year note (the “Financing Note”), issued by the Non-Transferring Member to the Transferring Member, with the following terms: 
  
 (a) Interest on the Financing Note shall be paid quarterly in arrears, with
interest to accrue quarterly at a rate per annum equal to ninety (90)-day LIBOR (adjusted as of the first business day of each fiscal quarter to reflect then-current ninety (90)-day LIBOR) plus a credit spread for companies comparable to AMD or
Fujitsu, as applicable, as mutually determined by (a) AMD Member, (b) Fujitsu Member and (c) two (2) investment banks (one (1) selected by each of AMD Member and Fujitsu Member) retained for the purpose of assisting with such determination;
provided, however, that in no event shall the interest rate be greater or less than two hundred (200) basis points from the initial interest rate of the Financing Note. Interest will be calculated on the basis of a three hundred sixty
(360)-day year for the actual number of days elapsed. 
  
 (b)
Principal on the Financing Note shall be paid as follows: 
  
 (1) On the first anniversary of the Financing Note, principal shall be repaid in an amount equal to the lesser of: 
  
 (A) the Percentage Sold multiplied by net income (as shown on the most recent Company financial statements, consistent with GAAP) for the most
recently completed twelve (12) months; and 
  
 (B) the amount of
cash paid and distributed (or the maximum amount of cash legally available for payment and/or distribution, even if not actually paid or distributed) to the Non-Transferring Member during the most recently completed twelve (12) months in accordance
with Section 5.1, provided, however, that (1) with respect to Section 5.1.1(a), cash shall be treated as paid and distributed (or legally available for payment and/or distribution) only to the extent that the Non-Transferring Member is able
to use net operating losses to offset any taxable income allocable to such party, and (2) with respect to Section 5.1.2(a), cash shall be treated as paid and distributed (or legally available for payment and/or distribution) only to the extent such
payments are in respect of loans from the Non-Transferring Member to the Company. 
  

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 (2) On the second anniversary of the Financing Note, principal shall be repaid in an amount equal to the
lesser of: 
  
 (A) the Percentage Sold multiplied by net
income (as shown on the most recent Company financial statements, consistent with GAAP) for the most recently completed twelve (12) months; and 
  
 (B) the amount of cash paid and distributed (or the maximum amount of cash available for payment and/or distribution, even if not actually paid or
distributed) to the Non-Transferring Member during the most recently completed twenty-four (24) months in accordance with Section 5.1 (provided, however, that (1) with respect to Section 5.1.1(a), cash shall be treated as paid and distributed
(or legally available for payment and/or distribution) only to the extent that the Non-Transferring Member is able to use net operating losses to offset any taxable income allocable to such party, and (2) with respect to Section 5.1.2(a), cash shall
be treated as paid and distributed (or legally available for payment and/or distribution) only to the extent such payments are in respect of loans from the Non-Transferring Member to the Company), less any amounts paid to the Transferring
Member pursuant to Section 9.3.8(b)(1). 
  
 (3) On the third
anniversary of the Financing Note, the outstanding principal balance of the Financing Note (together with interest thereon and all other amounts due thereunder) shall be repaid in full. 
  
 (c) For purposes of this Section 9.3.8, “Percentage Sold” shall be calculated by dividing (A) the
number of shares being acquired by the Non-Transferring Member by (B) the total number of shares outstanding on the date of the Offer Notice. 
  
 (d) Repayment of the Financing Note shall be secured by a first-priority, perfected security interest over all the Transfer Shares being sold by the
Transferring Member to the Non-Transferring Member. The Non-Transferring Member and the Transferring Member (if retaining any Membership Interest in the Company) shall execute and deliver all documents, and take all other actions, necessary to
perfect and maintain the Transferring Member’s first-priority security interest in such Transfer Shares. 
  
 (e) If the Non-Transferring Member sells any portion of its Membership Interest while there is still any amount outstanding under the Financing Note,
then the Non-Transferring Member will be deemed to have first sold the Transfer Shares, and the Financing Note shall be immediately prepaid to the extent of all proceeds from such sale. 
  
 9.3.9 Third Party Sales. If the Right of First Refusal is not exercised with respect to any portion of the Transfer
Shares by the Non-Transferring Member and/or its assignee(s), then the Transferring Member shall have the right, but not the obligation, to attempt to sell the unsubscribed Transfer Shares to a third party pursuant to the following process. For the
avoidance of doubt, the Transferring Member shall not have the right to proceed to the Public Offering process set forth in Section 9.3.10 before fully completing the third-party sale process set forth in this Section 9.3.9, unless otherwise
consented to by the Non-Transferring Member. 
  

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 (a) As the initial step in the process, the Members shall jointly prepare an initial list of qualified
potential acquirers (each, a “Potential Acquirer”, and collectively, the “Potential Acquirers”) of the unsubscribed Transfer Shares. For the avoidance of doubt, the list of Potential Acquirers shall be subject to
the approval of the Non-Transferring Member, such approval not to be unreasonably withheld. 
  
 (b) Upon completion of the initial list of Potential Acquirers (such date of completion, the “Offer Commencement Date”), the Transferring Member may then offer the applicable Transfer Shares for sale
to any or all of the Potential Acquirers. The Members will participate in a joint sale process, but in no event shall the Non-Transferring Member have the right to participate in the Transferring Member’s negotiations with any Potential
Acquirer. 
  
 (c) Each Potential Acquirer shall have a period of
sixty (60) days from the Offer Commencement Date (the last day of such period, the “Initial Bid End-Date”) in which to submit an initial non-binding bid for the applicable Transfer Shares (or a shorter period if both Members
determine in good faith that further bona fide bids are not reasonably likely to be received before the end of such sixty (60)-day period). 
  
 (d) Each Potential Acquirer that has submitted an initial bid shall have a period of thirty (30) days, or up to sixty (60) days, at the Non-Transferring
Member’s option, if the Non-Transferring Member determines in good faith that such extension is warranted to accommodate a bona fide bidder, from the Initial Bid End-Date in which to submit a final bid for the applicable Transfer Shares (the
last day of such period, the “Final Bid End-Date”). 
  
 (e) The Transferring Member shall have a period of twenty (20) days, or up to thirty (30) days, at the Non-Transferring Member’s option, if the Non-Transferring Member determines in good faith that such extension is warranted to
accommodate a bona fide bidder, from the Final Bid End-Date in which to consummate the sale of the applicable Transfer Shares (the last day of such period, the “Sale End-Date”). 
  
 (f) The Members may mutually agree to extend any of the time periods set
forth above. 
  
 (g) No sale of the applicable Transfer Shares to
a Potential Acquirer shall be effected except at a value that is equal to or greater than the Valuation Amount. In addition, in the event that the sale of the applicable Transfer Shares by the Transferring Member to a Potential Acquirer includes the
transfer of strategic and/or governance rights relating to the Company and/or the Non-Transferring Member (including rights relating to the appointment of Managers (Section 7.2), and the matters requiring a Special Vote (Section 7.7) (i.e.,
any rights in excess of Economic Rights)), such sale shall be subject to the approval of the Non-Transferring Member, such approval not to be unreasonably withheld. 
  
 9.3.10 Public Offering. If no bids are received at either the Initial Bid End-Date or the Final Bid End-Date with a
per share purchase price at least equal to the Valuation Amount, or if the sale of the applicable Transfer Shares is not able to be consummated by the Sale End-Date, then the Transferring Member shall have the right, but not the obligation, to sell
the 
  

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applicable Transfer Shares through the following underwritten public offering process (a “Public Offering”). 
  
 (a) If the Transferring Member desires to sell the applicable Transfer
Shares in a Public Offering, the Transferring Member must provide the Company with written notice requesting that the Company file a registration statement under the Securities Act covering the registration of the applicable Transfer Shares, within
fifteen (15) days from the last to occur of (i) the Initial Bid End-Date, if no bona fide bids are received with a per share purchase price at least equal to the Valuation Amount, (ii) the Final Bid End-Date, if no bona fide final bids
are received with a per share purchase price at least equal to the Valuation Amount, and (iii) the Sale End-Date, if the sale of the applicable Transfer Shares is not able to be consummated by the Sale-End Date. 
  
 (b) Upon receipt of such notice from the Transferring Member, the Company
will promptly, and in no event less than ten (10) days of the receipt thereof, give written notice of the Transferring Member’s request to the Non-Transferring Member. The Non-Transferring Member shall, subject to the conditions set forth
herein, have the right, by giving written notice to the Company within fifteen (15) days after receipt of the Company’s notice, to include in such Public Offering such of its shares as it elects in such notice to the Company (the Transferring
Member and the Non-Transferring Member, if it elects to include some or all of its shares in the Public Offering, are referred to collectively as the “Selling Members” and individually as a “Selling Member”). The
Company shall also have the right, subject to the conditions set forth herein, to include in such Public Offering any number of shares as it so elects. 
  
 (c) The right of any Selling Member to include its shares in such registration will be conditioned upon such Selling Member’s participation in the
underwriting and the inclusion of such Selling Member’s shares in the underwriting to the extent provided herein. Each Selling Member proposing to distribute its shares through such underwriting will enter into an underwriting agreement in
customary form with the underwriter or underwriters selected for such underwriting in accordance with Section 9.3.10(g). 
  
 (d) Notwithstanding anything to the contrary in the foregoing, if the managing underwriter advises the Company that the total amount of shares requested
to be included in the Public Offering exceeds the amount that the underwriter in its discretion determines is compatible with the success of the Public Offering, then the Company will so advise each Selling Member that would otherwise have shares
included in such Public Offering pursuant hereto, and the shares that may be included in the underwriting will be as follows (in the following order of priority): first, the applicable Transfer Shares; second, the shares included for sale by the
Non-Transferring Member; and third, the shares included for sale by the Company. For the avoidance of doubt, no Transfer Shares shall be excluded unless and until all other shares of the Non-Transferring Member and the Company have been excluded.
Any shares excluded or withdrawn from such underwriting will be withdrawn from the registration 
  

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 (e) The Non-Transferring Member (if it is not also a Selling Member) shall have the right to purchase
its pro-rata portion (based on its Percentage Interest at the time of the Public Offering) of the shares being sold in the Public Offering. 
  
 (f) When required to effect the registration of any shares pursuant to this Section 9.3.10, the Company will, as expeditiously as possible (provided that
if the Company furnishes to the Member(s) requesting such registration a copy of a resolution of the Board of Managers certified by the Secretary of the Company stating that in the good faith judgment of the Board of Managers it would be seriously
detrimental to the Company and its Members for such registration statement to be filed at such time, the Company shall have the right to defer such filing for a period of not more than ninety (90) days after receipt of the request for registration,
provided further that such request may not be exercised more than one time in any twelve (12) month period): 
  
 (1) prepare and file with the SEC a registration statement with respect to the applicable Transfer Shares (and the other shares included by the other
Selling Members and/or the Company) and use commercially reasonable efforts to cause such registration statement to become effective as expeditiously as possible, and keep such registration statement effective until the distribution contemplated in
the registration statement has been completed, provided that prior to the filing of the registration statement with the SEC, the Company will have furnished counsel for each Member with copies of all documents proposed to be filed and
obtained the approval of such counsel, which approval shall not be unreasonably withheld or delayed, in respect of all disclosures therein relating to such Member; 
  
 (2) notify each Selling Member of the effectiveness of the registration statement and prepare and file with the SEC such
amendments and supplements to such registration statement and the prospectus used in connection with such registration statement as may be necessary to comply with the provisions of the Securities Act with respect to the disposition of all shares
covered by such registration statement; 
  
 (3) furnish to each
Selling Member (i) a draft copy of the registration statement and (ii) such numbers of copies of a prospectus, including a preliminary prospectus, in conformity with the requirements of the Securities Act, and such other documents as it may
reasonably request in order to facilitate the disposition of shares owned by it; 
  
 (4) use commercially reasonable efforts to (i) register and qualify the shares covered by such registration statement under such other securities or “blue sky” laws of such jurisdictions as may be reasonably
requested by each Selling Member and do all other acts and things that may be necessary or desirable to enable the Selling Members to consummate their public sale or other disposition of the shares in such states, provided that the Company
will not be required in connection therewith or as a condition thereto to qualify to do business, where not otherwise required, or to file a general consent to service of process in any such states or jurisdictions, unless the Company is already
subject to service in such jurisdiction and except as may be required by the Securities Act, and (ii) cause such shares to be registered with or approved by such other governmental agencies or authorities as may be necessary by virtue of the
business and operations of the Company to enable the disposition of such shares; 
  

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 (5) enter into and perform its obligations under the underwriting agreement, in usual and customary
form, with the managing underwriter of such offering and take such other actions as the underwriters reasonably deem necessary to expedite or facilitate the disposition of the shares (including, without limitation, effecting a stock split or
combination or causing its officers to participate in “road shows”); 
  
 (6) notify each Selling Member covered by such registration statement, at any time when a prospectus relating thereto is required to be delivered under the Securities Act, of (i) the issuance of any stop order by the
SEC suspending the effectiveness of such registration statement or the initiation of any proceedings by any Person to such effect, and promptly use commercially reasonable efforts to obtain the release of such suspension, or (ii) the happening of
any event as a result of which the prospectus included in such registration statement, as then in effect, includes an untrue statement of a material fact or omits to state a material fact required to be stated therein or necessary to make the
statements therein not misleading and promptly furnish to each Selling Member copies of a supplement or amendment of such prospectus as may be necessary to correct such misstatement or omission; 
  
 (7) cause all such shares registered pursuant hereunder to be listed on a
national securities exchange or the Nasdaq National Market (or, if the Company’s shares are already listed, on each securities exchange on which similar securities issued by the Company are then listed); 
  
 (8) provide a transfer agent and registrar for all shares registered
pursuant hereunder and a CUSIP number for all such shares, in each case not later than the effective date of such registration and use commercially reasonable efforts to cause the transfer agent to remove restrictive legends on the securities
covered by such registration; and 
  
 (9) permit each Selling
Member requesting such registration or their counsel, the managing underwriter, and the accountants and counsel to the underwriters, to conduct a due diligence investigation of Company, including, without limitation, the inspection of properties of
the Company and financial and other records and corporate proceedings and access to Company management and the Company Accountant to supply all information reasonably requested by each Selling Member, underwriters and their counsel. 
  
 (g) Underwriters for the Public Offering shall be selected mutually by each
Selling Member and the Company. Subject to Section 9.3.10(h), all expenses incurred by the Company in connection with registrations, filings and qualifications made for purposes of this Section 9.3.10, including, without limitation, all
registration, filing and qualification fees (including “blue sky” fees), printer and accounting fees, and fees and disbursements of counsel for the Company, shall be borne by all Selling Members (and the Company, if the Company elects to
include any shares in the Public Offering), on a pro rata basis based on the number of shares included in the Public Offering. 
  
 (h) If the managing underwriter advises the Company that consummation of the Public Offering requires that the Company convert from a limited liability
company to a corporation, the Company will promptly take all actions, and the Members will 
  

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approve all actions and cause the Board of Managers to approve all actions, reasonably necessary or useful for such conversion effective immediately prior to
the closing of the Public Offering. AMD Member shall bear all necessary attorneys’, accountants’ and filing fees and expenses and any sales and/or transfer taxes incurred by the Company in connection with the conversion of the Company from
a limited liability company to a corporation as part of the Public Offering. 
  
 (i) Each Member shall furnish the Company and the managing underwriter with such information regarding itself, the shares held by it and such other information as reasonably requested by the Company or the managing
underwriter in order to satisfy the requirements applicable to the registration of the Selling Members’ shares. 
  
 (j) Any Transfer Shares sold pursuant to a Public Offering shall only be sold at a per share price equal to or in excess of the Valuation Amount. If such
a minimum price cannot be obtained, then a Public Offering cannot be consummated, and the sale process shall conclude. 
  
 (k) In the event of a Public Offering, the Company and each Selling Member will enter an indemnification agreement, pursuant to which the Company and
each Selling Member, to the fullest extent permitted by law, will agree to indemnify and hold harmless each other and certain other persons from and against certain claims, damages and expenses arising under applicable securities laws in connection
with the Public Offering. Such indemnification agreement may, but need not, be included in the underwriting agreement referenced in clause (f)(5) of this Section 9.3.10 above and shall in any event contain usual and customary terms and conditions
for such agreements. 
  

	 	
9.4	 	Limitation on Number of Valuation Requests 

  
 Following submission of a Valuation Request, the requesting Member shall not have the right to submit another Valuation Request until one (1) year after
the conclusion of the sale process relating to the submitted Valuation Request. However, in the event the Transferring Member submits a Valuation Request, but after receipt of the Valuations determines not to transfer any of its Membership Interest,
such Transferring Member shall not have the right to submit another Valuation Request until two (2) years from the date of receipt of the last completed Valuation relating to the submitted Valuation Request. 
  

	 	
9.5	 	Further Restrictions on Transfer 

  
 Notwithstanding any contrary provision in this Agreement, any otherwise permitted Transfer shall be null and void if: 
  
 9.5.1 except as provided in Section 9.3.10, such Transfer requires the
registration of such Transferred Interest pursuant to any applicable federal or state securities laws; 
  
 9.5.2 such Transfer causes the Company to become a “publicly traded partnership,” as such term is defined in Section 7704(b) of the Code;

  

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 9.5.3 such Transfer subjects the Company to regulation under the Investment Company Act, the Investment
Advisers Act or the Employee Retirement Income Security Act of 1974, as amended; 
  
 9.5.4 such Transfer results in a violation of Applicable Laws; or 
  
 9.5.5 such Transfer is made to any Person who lacks the legal right, power or capacity to own such Interest. 
  

	 	
9.6	 	Rights of Assignees 

  
 Until such time, if any, as a transferee of any permitted Transfer pursuant to this Article 9 is admitted to the Company as a Substitute Member pursuant
to Section 9.8: (i) such transferee shall be an Assignee only, and only shall receive, to the extent Transferred, the distributions and allocations of income, gain, loss, deduction, credit, or similar item to which the Member which Transferred its
Membership Interest would be entitled, and (ii) to the fullest extent permitted by Applicable Law, such Assignee shall not be entitled or enabled to exercise any other rights or powers of a Member, such other rights remaining with the transferring
Member. In such a case, the transferring Member shall remain a Member even if it has Transferred its entire Economic Interest in the Company to one or more Assignees. In the event any Assignee desires to make a further assignment of any Economic
Interest in the Company, such Assignee shall be subject to all of the provisions of this Agreement to the same extent and in the same manner as any Member desiring to make such an assignment. 
  

	 	
9.7	 	Admissions and Withdrawals 

  
 No Person shall be admitted to the Company as a Member after the Launch Date except in accordance with Section 9.8. Except as otherwise specifically set
forth in Section 9.9, no Member shall be entitled to retire or withdraw from being a Member of the Company without the written consent of each other Member, which consent may be given or withheld in each Member’s sole and absolute discretion.
No admission or withdrawal of a Member shall cause the dissolution of the Company. Any purported admission or withdrawal which is not in accordance with this Agreement shall be null and void. 
  

	 	
9.8	 	Admission of Assignees as Substitute Members 

  
 9.8.1 Conditions. An Assignee shall become a Substitute Member immediately, upon the satisfaction of each of the following conditions: 

 
 (a) the assignor of the Interest Transferred sends written notice to the
Board of Managers requesting the admission of the Assignee as a Substitute Member and setting forth the name and address of the Assignee, the Percentage Interest Transferred by the Transferring Member to the Assignee, and the effective date of the
Transfer; 
  
 (b) Except in connection with Transfers pursuant to
Section 9.3, Members holding a majority of the Percentage Interests held by Non-Transferring Members with 
  

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respect to the Transfer consent in writing to such admission, which consent may be given or withheld in such Member’s sole and absolute discretion;

  
 (c) the Company receives from the Assignee (i) an executed
Joinder Agreement substantially in the form of Exhibit B, (ii) copies of any instruments of Transfer evidencing the Transfer and (iii) an executed counterpart of the Non-Competition Agreement; and 
  
 (d) Assignee’s receipt of its Membership Interest in compliance with
the provisions of this Agreement. 
  
 9.8.2 Amendment. Upon
the admission of any Substitute Member, Exhibit A shall be amended to reflect the name, address and Percentage Interest of such Substitute Member and to eliminate or adjust, if necessary, the name, address and Percentage Interest of
the predecessor of such Substitute Member. 
  

	 	
9.9	 	Withdrawal of Members 

  
 If a Member has Transferred all of its Membership Interest to one or more Assignees, then such Member shall be deemed to have withdrawn from the Company
if and when all such Assignees have been admitted as Substitute Members in accordance with this Agreement. 
  

	 	
9.10	 	Compliance With IRS Safe Harbor 

  
 The Board of Managers shall monitor the Transfers of interests in the Company to determine (i) whether such interests are being traded on an
“established securities market” or a “secondary market (or the substantial equivalent thereof)” within the meaning of Section 7704 of the Code, and (ii) whether additional transfers of interests would result in the Company being
unable to qualify for at least one of the “safe harbors” set forth in Regulations Section 1.7704-1 (or such other guidance subsequently published by the Internal Revenue Service setting forth safe harbors under which interests will not be
treated as “readily tradable on a secondary market (or the substantial equivalent thereof)” within the meaning of Section 7704 of the Code) (the “Safe Harbors”). The Board of Managers shall take all steps reasonably
necessary or appropriate to prevent any trading of interests or any recognition by the Company of transfers made on such markets and, except as otherwise provided herein, to ensure that at least one of the Safe Harbors is met. 
  
 
ARTICLE 10. 
 DISSOLUTION, LIQUIDATION, AND TERMINATION OF THE COMPANY; 
 EFFECT OF BREACH 
  

	 	
10.1	 	Limitations 

  
 The Company may be dissolved, liquidated, and terminated only pursuant to the provisions of this Article 10, and the parties hereto do hereby irrevocably
waive, to the extent 
  

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permitted by Applicable Law, any and all other rights they may have to cause a dissolution, liquidation or termination of the Company or a sale or partition
of any or all of the Company Assets in connection with such dissolution or liquidation. 
  

	 	
10.2	 	Exclusive Causes 

  
 Notwithstanding the Act, the following and only the following events shall cause the Company to be dissolved, liquidated, and terminated: 
  
 (a) by the election of all of the Members; 
  
 (b) the entry of a decree of judicial dissolution pursuant to §18-802
of the Act; or 
  
 (c) at any Member’s election, if the
Company ceases operation for more than six (6) months unless due to force majeure. 
  
 To the fullest extent permitted by law, any dissolution of the Company other than as provided in this Section 10.2 shall be a dissolution in contravention of this Agreement. 
  

	 	
10.3	 	Effect of Dissolution 

  
 The dissolution of the Company shall be effective on the day on which the event occurs giving rise to the dissolution, but the Company shall not terminate
until it has been wound up and its assets have been distributed as provided in Section 10.5.1 of this Agreement. Notwithstanding the dissolution of the Company, prior to the termination of the Company, the business of the Company and the affairs of
the Members, as such, shall continue to be governed by this Agreement. 
  

	 	
10.4	 	No Capital Contribution Upon Dissolution 

  
 Each Member shall look solely to the Company Assets for all distributions with respect to the Company, its Capital Contribution thereto, its Capital
Account and its share of Net Profits or Net Losses, and shall have no recourse therefor (upon dissolution or otherwise) against any other Member. Accordingly, if any Member has a deficit Capital Account balance (after giving effect to all
contributions, distributions and allocations for all taxable years, including the year during which the liquidation occurs), then such Member shall have no obligation to make any Capital Contribution with respect to such deficit, and such deficit
shall not be considered a debt owed to the Company or to any other Person for any purpose whatsoever. 
  

	 	
10.5	 	Liquidation 

  
 10.5.1 Upon dissolution of the Company, the Board of Managers (or other Person(s) designated by a decree of court) shall act as the
“Liquidators” of the Company. The Liquidators shall liquidate the Company Assets, and after allocating (pursuant to Article 6 of this 
  

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Agreement) all income, gain, loss and deductions resulting therefrom, shall apply and distribute the proceeds thereof as follows: 
  
 (a) first, to (i) the payment of the obligations of the Company to third
parties, including, but not limited to and on a pari passu basis, taxes, debts, lease and other payments to Persons other than Members or their Affiliates; (ii) the expenses of liquidation; and (iii) the setting up of any reserves for
contingencies, debts or liabilities to Persons other than the Members or their Affiliates, whether the whereabouts of the creditor is known or unknown, which the Board of Managers may consider necessary; 
  
 (b) thereafter, amounts due to either Member or their respective Affiliates
(other than a Company Entity) pursuant to intellectual property license agreements, consulting agreements, services agreements, subcontracting agreements, lease agreements and other similar agreements, but excluding any Member Debt Financing or
Member Guaranteed Financing; 
  
 (c) thereafter, to the
repayment, on a pari passu basis, of any Member Debt Financing or Member Guaranteed Financing; 
  
 (d) thereafter, to the setting up of any reserves for contingencies, debts or liabilities to Members or their Affiliates, which the Board of Managers may
consider necessary; and 
  
 (e) thereafter, to the Members in
proportion to the positive balances in the Members’ respective Capital Accounts, determined after taking into account all Capital Account adjustments for the Company’s taxable year during which such liquidation occurs, by the end of the
taxable year in which such liquidation occurs or, if later, within ninety (90) days after the date of the liquidation. 
  
 10.5.2 Notwithstanding Section 10.5.1 of this Agreement, in the event that the Board of Managers determines that an immediate sale of all or any portion
of the Company Assets would cause undue loss to the Members, the Board of Managers, in order to avoid such loss to the extent not then prohibited by the Act, may either defer liquidation of and withhold from distribution for a reasonable time any
Company Assets except those necessary to satisfy the Company’s debts and obligations, or, subject to Section 5.5, distribute the Company Assets to the Members in kind (in accordance with the second sentence of Section 10.5.1). 
  

	 	
10.6	 	Effect of Breach of Operations Shortfall Funding Requirement 

  
 Until the expiration of the 4-Year Period, either AMD Member’s or Fujitsu Member’s failure to fund its pro rata portion of (i) an Operations
Shortfall Amount pursuant to Section 4.4 or (ii) any other financing required pursuant to the terms of this Agreement shall be a “Breach” (such Member so failing to fund, the “Breaching Member”). Upon the occurrence
of a Breach, the non-breaching Member (the “Non-Breaching Member”) shall have the following rights and remedies: 
  

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 10.6.1 Non-Material Breach: In the event of a Breach by the Breaching Member, the Non-Breaching
Member shall have the following rights: 
  
 (a) without being
deemed a Breach, the Non-Breaching Member may elect to withhold the funding of its pro rata portion of the Operations Shortfall Amount (the “Non-Breaching Member’s Amount”), or if the Non-Breaching Member elects to withhold the
Non-Breaching Member’s Amount but has already advanced the Non-Breaching Member’s Amount to the Company, then AMD Member and Fujitsu Member shall cause the Company to refund the Non-Breaching Member’s Amount to the Non-Breaching
Member; however, it is understood that AMD Member, Fujitsu Member and the Company shall reasonably agree upon a mechanism to prevent such an advance by a Non-Breaching Member; or 
  
 (b) Within ten (10) days of the Breach, the Non-Breaching Member may elect to fund the Non-Breaching Member’s Amount
and a portion or all of the Breaching Member’s pro rata portion of the Operations Shortfall Amount (such amount actually funded by the Non-Breaching Member on behalf of the Breaching Member, the “Breaching Member’s
Amount”). In exchange for funding the Breaching Member’s Amount, the Company will issue to the Non-Breaching Member a convertible note in the form attached hereto as Exhibit F (a “Breach Convertible
Note”) with a principal amount equal to the Breaching Member’s Amount. 
  
 (1) Interest. Each Breach Convertible Note shall bear interest at a per annum rate described in Exhibit F. 
  

(2) Ranking. Notwithstanding anything in Article 5 or any other provisions of this Agreement to the contrary, each Breach Convertible Note
shall rank senior to all other amounts payable by the Company to the Breaching Member (other than payments in respect of Taxes in accordance with Section 5.1.1(a)). Accordingly, to the extent that any amounts are payable by the Company to the
Breaching Member in respect of any other debt or distributions of any kind, such amounts shall be paid to the Non-Breaching Member to be applied (i) first, against accrued interest under the Breach Convertible Note and (ii) second, against
outstanding principal under the Breach Convertible Note. 
  
 (3)
Conversion. Notwithstanding the maturity date of any Breach Convertible Note, such Breach Convertible Note shall be convertible on or after the date that is the earlier of (a) the date of delivery of an Offer Notice by the Breaching Member
and (b) the date first after the expiration of the Cure Period; provided, however, that when the Cure Period no longer applies, each Breach Convertible Note may be converted at any time on or after the date of issuance thereof. The Breach
Convertible Note shall be convertible into that number of Units equal to one hundred twenty percent (120%) of the number of Units that would be received following the procedures set forth in (and the conversion formula used therein) with respect to
a comparable convertible note in Section 4.3.2(d)(4); (provided, however, that (i) the Valuation Amount for this purpose shall be determined by a Qualified Valuator selected by the Non-Breaching Member and approved by the Breaching Member, which
approval shall not be unreasonably withheld or delayed, (ii) such Qualified Valuator shall complete the valuation within forty-five (45) days after the appointment thereof, using any appointment method or 
  

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methods the Qualified Valuator deems appropriate and (iii) the costs of such valuation shall be borne by the Company). 
  
 10.6.2 Material Breach. In the event of a Material Breach by a
Breaching Member, the Non-Breaching Member shall have the rights set forth in Section 10.6.1, plus: 
  
 (a) Following the Cure Period, the Non-Breaching Member shall have the right to sell any or all of its Membership Interests to a third party without
being subject to the transfer procedures set forth in Article 9 (provided that during any such Cure Period, the Non-Breaching Member shall have the right to approach potential purchasers regarding the sale of its Membership Interests). 

 
 
ARTICLE 11. 
 AMD GUARANTY 
  

	 	
11.1	 	Guaranty 

  
 Subject to the limitations expressly set forth in this Article 11, AMD hereby, absolutely, unconditionally and irrevocably, guarantees (this “AMD
Guaranty”) by way of an independent obligation to the Company and Fujitsu and Fujitsu Member (a) the due, prompt and faithful performance by AMD Member of all undertakings, obligations, required acts and performances of AMD Member under or
arising out of this Agreement, and (b) the due and punctual payment of all amounts due and payable by AMD Member under or arising out of this Agreement after the date hereof, when and as the same shall arise and become due and payable in accordance
with the terms of and subject to the conditions contained in this Agreement (collectively, the “AMD Guaranteed Obligations”). 
  

	 	
11.2	 	AMD Guaranteed Obligations 

  
 This is a guaranty of payment and performance and not of collection only. If for any reason whatsoever AMD Member shall fail or be unable to perform or
comply with any of its AMD Guaranteed Obligations, AMD shall promptly upon receipt of notice thereof from the Company or Fujitsu Member, as applicable, (a) pay or cause to be paid in lawful money of the United States the unpaid AMD Guaranteed
Obligations then due and payable (at the place specified and in the amounts and to the extent required of AMD Member under this Agreement) and (b) perform or comply with the AMD Guaranteed Obligations for which performance or compliance is due or
cause such AMD Guaranteed Obligations to be performed or complied with (such performance or compliance as required of AMD Member under this Agreement). 
  

	 	
11.3	 	Guarantee Absolute and Unconditional 

  
 AMD waives any and all notice of the creation, renewal, extension, amendment, modification or accrual of any of the AMD Guaranteed Obligations and notice
of or proof of reliance by the Company upon this AMD Guaranty or acceptance of this AMD Guaranty; the AMD Guaranteed Obligations, and any of them, shall conclusively be deemed to have been created, contracted or incurred, or renewed, extended,
amended or waived, in reliance upon the 
  

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AMD Guaranty; and all dealings between AMD Member and AMD, on the one hand, and the Company or Fujitsu and Fujitsu Member, on the other hand, likewise shall
be conclusively presumed to have been had or consummated in reliance upon the AMD Guaranty. AMD agrees that (i) any notice provided under this Agreement to AMD Member (including any demand for payment or notice of default or non payment) shall be
deemed to constitute notice to AMD for purposes hereof and (ii) any knowledge of AMD Member shall be deemed knowledge of AMD for purposes hereof. Nothing in this Article 11 shall be deemed to constitute a waiver of, or prevent AMD from asserting,
any valid defense that may be asserted by AMD Member. AMD waives to the fullest extent permitted by Applicable Law any defense whatsoever to the performance of the AMD Guaranteed Obligations that would not constitute a valid defense by AMD Member
(including, without limitation, any defense that may be derived from or afforded by Applicable Law that limits the liability of or exonerate guarantors or sureties). AMD understands and agrees that this AMD Guaranty shall be construed as a
continuing, absolute and unconditional guaranty of payment and performance without regard to (a) the validity or enforceability of this Agreement or this Article 11, or (b) any other circumstance whatsoever (with or without notice to or knowledge of
AMD Member or AMD) which constitutes, or might be construed to constitute, an equitable or legal discharge of AMD Member for the AMD Guaranteed Obligations, or of AMD under the AMD Guaranty in bankruptcy or any similar proceedings. When making any
demand hereunder or otherwise pursuing its rights and remedies hereunder against AMD, the Company, Fujitsu or Fujitsu Member may, but shall be under no obligation to (and AMD irrevocably and unconditionally hereby waives to the fullest extent
permitted by Applicable Law any right AMD may have to require the Company or any other Person to, and any defense that may arise from the Company’s or any other Person’s failure to) make a similar demand on or otherwise pursue such rights
and remedies as it may have against AMD Member or any other Person or against any collateral security or guaranty for the AMD Guaranteed Obligations or any right of offset with respect thereto, and any failure by the Company to make any such demand,
to pursue such other rights or remedies or to collect any payments from AMD Member or any other Person or to realize upon any such collateral security or guaranty or to exercise any such right of offset, or any release of AMD Member or any other
Person or any such collateral security, guaranty or right of offset, shall not relieve AMD of any obligation or liability hereunder, and shall not impair or affect the rights and remedies, whether express, implied or available as a matter of law, of
the Company against AMD. For the purposes hereof “demand” shall include the commencement and continuance of any legal proceedings. 
  

	 	
11.4	 	Reinstatement 

  
 This AMD Guaranty shall continue to be effective, or be reinstated, as the case may be, if at any time payment, or any part thereof, of any of the AMD
Guaranteed Obligations is rescinded or must otherwise be restored or returned by the Company upon any insolvency, bankruptcy, dissolution, liquidation or reorganization involving AMD Member or AMD, or upon or as a result of the appointment of a
receiver, intervenor or conservator of, or trustee or similar officer for, AMD Member or AMD or any substantial part of its property, or otherwise, all as though such payments had not been made. 
  

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11.5	 	Expenses 

  
 AMD shall pay reasonable out-of-pocket attorneys’ fees, reasonable out-of-pocket costs and other expenses of the Company, Fujitsu Member or Fujitsu
expended or incurred in enforcing the AMD Guaranty against AMD with respect to any claim against AMD Member in which the Company, Fujitsu Member or Fujitsu is the prevailing party, whether or not legal action is instituted, including, without
limitation, all fees, costs and expenses incurred in connection with any insolvency, bankruptcy, reorganization, arrangement or other similar proceedings involving AMD Member or AMD which in any way affect the exercises by the Company, Fujitsu
Member or Fujitsu of any of its rights and/or remedies hereunder. Except as provided in the preceding sentence, any expenses incurred by the parties hereto in any arbitration proceeding initiated pursuant to Section 13.14 shall be paid in accordance
with the dispute resolution procedures set forth in Schedule A. 
  

	 	
11.6	 	Expiration of Guaranty 

  
 Notwithstanding anything in this Article 11 to the contrary, this Article 11 shall apply until the earlier to occur of (a) the date that all AMD
Guaranteed Obligations and the obligations of AMD under this Article 11 shall have been satisfied by performance in full and of the AMD Guaranteed Obligations and (b) the date that AMD Member consummates a sale of its entire Membership Interest in
the Company to an unaffiliated third party pursuant to Article 9 and such third party becomes a Substitute Member; provided that this Article 11 shall remain in effect with respect to any claims arising under this Article 11 on or prior to the date
of such sale. 
  

	 	
11.7	 	Limits on Guaranty 

  
 Notwithstanding anything in this Article 11 to the contrary, (a) Fujitsu Member may only make a claim or otherwise enforce rights against AMD under the
AMD Guaranty if (i) Fujitsu Member has a claim based on a direct contractual obligation or legal duty between the Members arising out of or relating to this Agreement or (ii) Fujitsu Member believes in good faith that it has otherwise suffered
damages as a result of a breach hereunder by AMD Member that exceed independently, or in the aggregate with all previous uncured breaches by AMD Member, one hundred million dollars (U.S.$100,000,000) and (b) Fujitsu may only make a claim or
otherwise enforce rights against AMD under the AMD Guaranty if Fujitsu believes in good faith that it has suffered damages as a result of a breach hereunder by AMD Member that exceed independently, or in the aggregate with all previous uncured
breaches by AMD Member, one hundred million dollars (U.S.$100,000,000). 
  

	 	
11.8	 	Limitation on Claims 

  
 If, based upon a substantially identical underlying factual basis, (A) an arbitrator, court, tribunal or other judicial authority determines in an
enforceable award, judgment or decision that AMD or an Affiliate of AMD shall make payments to, or on behalf of, the Company, and to or on behalf of Fujitsu or an Affiliate of Fujitsu, in satisfaction of a breach of contract claim, indemnification
claim, enforcement action or other legal or equitable claims of the Company and of Fujitsu or an Affiliate of Fujitsu (other than in each case for indemnification 
  

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of Fujitsu or an Affiliate of Fujitsu against a Third Party Claim (as defined in the Contribution Agreement)), related to any Transaction Document (as
defined in the Contribution Agreement) or the transactions contemplated thereunder, and (B) AMD or its Affiliate makes the payments in satisfaction of the claim of the Company, the amounts payable to, or on behalf of, Fujitsu or its Affiliate by AMD
or its Affiliate shall be reduced by an amount equal to the product of (X) Fujitsu’s Membership Interest at the time of the claim of the Company multiplied by (Y) the aggregate amount paid by AMD to, or on behalf of, the Company, in
satisfaction of the claim of the Company. 
  
 
ARTICLE 12. 
 FUJITSU GUARANTY 
  

	 	
12.1	 	Guaranty 

  
 Subject to the limitations expressly set forth in this Article 12, Fujitsu hereby, absolutely, unconditionally and irrevocably, guarantees (this
“Fujitsu Guaranty”) by way of an independent obligation to the Company and AMD and AMD Member (a) the due, prompt and faithful performance by Fujitsu Member of all undertakings, obligations, required acts and performances of Fujitsu
Member under or arising out of this Agreement, and (b) the due and punctual payment of all amounts due and payable by Fujitsu Member under or arising out of this Agreement after the date hereof, when and as the same shall arise and become due and
payable in accordance with the terms of and subject to the conditions contained in this Agreement (collectively, the “Fujitsu Guaranteed Obligations”). 
  

	 	
12.2	 	Fujitsu Guaranteed Obligations 

  
 This is a guaranty of payment and performance and not of collection only. If for any reason whatsoever Fujitsu Member shall fail or be unable to perform
or comply with any of its Fujitsu Guaranteed Obligations, Fujitsu shall promptly upon receipt of notice thereof from the Company or AMD Member, as applicable, (a) pay or cause to be paid in lawful money of the United States the unpaid Fujitsu
Guaranteed Obligations then due and payable (at the place specified and in the amounts and to the extent required of Fujitsu Member under this Agreement) and (b) perform or comply with the Fujitsu Guaranteed Obligations for which performance or
compliance is due or cause such Fujitsu Guaranteed Obligations to be performed or complied with (such performance or compliance as required of Fujitsu Member under this Agreement). 
  

	 	
12.3	 	Guarantee Absolute and Unconditional 

  
 Fujitsu waives any and all notice of the creation, renewal, extension, amendment, modification or accrual of any of the Fujitsu Guaranteed Obligations and
notice of or proof of reliance by the Company upon this Fujitsu Guaranty or acceptance of this Fujitsu Guaranty; the Fujitsu Guaranteed Obligations, and any of them, shall conclusively be deemed to have been created, contracted or incurred, or
renewed, extended, amended or waived, in reliance upon the Fujitsu Guaranty; and all dealings between Fujitsu Member and Fujitsu, on the one hand, and the Company or AMD and AMD Member, on the other hand, likewise shall be conclusively presumed to
have been had or consummated in reliance upon the Fujitsu Guaranty. Fujitsu 
  

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agrees that (i) any notice provided under this Agreement to Fujitsu Member (including any demand for payment or notice of default or non payment) shall be
deemed to constitute notice to Fujitsu for purposes hereof and (ii) any knowledge of Fujitsu Member shall be deemed knowledge of Fujitsu for purposes hereof. Nothing in this Article 12 shall be deemed to constitute a waiver of, or prevent Fujitsu
from asserting, any valid defense that may be asserted by Fujitsu Member. Fujitsu waives to the fullest extent permitted by Applicable Law any defense whatsoever to the performance of the Fujitsu Guaranteed Obligations that would not constitute a
valid defense by Fujitsu Member (including, without limitation, any defense that may be derived from or afforded by Applicable Law that limits the liability of or exonerates guarantors or sureties). Fujitsu understands and agrees that this Fujitsu
Guaranty shall be construed as a continuing, absolute and unconditional guaranty of payment and performance without regard to (a) the validity or enforceability of this Agreement or this Article 12, or (b) any other circumstance whatsoever (with or
without notice to or knowledge of Fujitsu Member or Fujitsu) which constitutes, or might be construed to constitute, an equitable or legal discharge of Fujitsu Member for the Fujitsu Guaranteed Obligations, or of Fujitsu under the Fujitsu Guaranty
in bankruptcy or any similar proceedings. When making any demand hereunder or otherwise pursuing its rights and remedies hereunder against Fujitsu, the Company, AMD or AMD Member may, but shall be under no obligation to (and Fujitsu irrevocably and
unconditionally waives to the fullest extent permitted by Applicable Law any right Fujitsu may have to require the Company or any other Person to, and any defense that may arise from the Company’s or any other Person’s failure to), make a
similar demand on or otherwise pursue such rights and remedies as it may have against Fujitsu Member or any other Person or against any collateral security or guaranty for the Fujitsu Guaranteed Obligations or any right of offset with respect
thereto, and any failure by the Company to make any such demand, to pursue such other rights or remedies or to collect any payments from Fujitsu Member or any other Person or to realize upon any such collateral security or guaranty or to exercise
any such right of offset, or any release of Fujitsu Member or any other Person or any such collateral security, guaranty or right of offset, shall not relieve Fujitsu of any obligation or liability hereunder, and shall not impair or affect the
rights and remedies, whether express, implied or available as a matter of law, of the Company against Fujitsu. For the purposes hereof “demand” shall include the commencement and continuance of any legal proceedings. 
  

	 	
12.4	 	Reinstatement 

  
 This Fujitsu Guaranty shall continue to be effective, or be reinstated, as the case may be, if at any time payment, or any part thereof, of any of the
Fujitsu Guaranteed Obligations is rescinded or must otherwise be restored or returned by the Company upon any insolvency, bankruptcy, dissolution, liquidation or reorganization involving Fujitsu Member or Fujitsu, or upon or as a result of the
appointment of a receiver, intervenor or conservator of, or trustee or similar officer for, Fujitsu Member or Fujitsu or any substantial part of its property, or otherwise, all as though such payments had not been made. 
  

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12.5	 	Expenses 

  
 Fujitsu shall pay reasonable out-of-pocket attorneys’ fees, reasonable out-of-pocket costs and other expenses of the Company, AMD Member or AMD
expended or incurred in enforcing the Fujitsu Guaranty against Fujitsu with respect to any claim against Fujitsu Member in which the Company, AMD Member or AMD is the prevailing party, whether or not legal action is instituted, including, without
limitation, all fees, costs and expenses incurred in connection with any insolvency, bankruptcy, reorganization, arrangement or other similar proceedings involving Fujitsu Member or Fujitsu which in any way affect the exercises by the Company, AMD
Member or AMD of any of its rights and/or remedies hereunder. Except as provided in the preceding sentence, any expenses incurred by the parties hereto in any arbitration proceeding initiated pursuant to Section 13.14 shall be paid in accordance
with the dispute resolution procedures set forth in Schedule A. 
  

	 	
12.6	 	Expiration of Guaranty 

  
 Notwithstanding anything in this Article 12 to the contrary, this Article 12 shall apply until the earlier to occur of (a) the date that all Fujitsu
Guaranteed Obligations and the obligations of Fujitsu under this Article 12 shall have been satisfied by performance in full and of the Fujitsu Guaranteed Obligations and (b) the date that Fujitsu Member consummates a sale of its entire Membership
Interest in the Company to an unaffiliated third party pursuant to Article 9 and such third party becomes a Substitute Member; provided that this Article 12 shall remain in effect with respect to any claims arising under this Article 12 on or prior
to the date of such sale. 
  

	 	
12.7	 	Limits on Guaranty 

  
 Notwithstanding anything in this Article 12 to the contrary, (a) AMD Member may only make a claim or otherwise enforce rights against Fujitsu under the
Fujitsu Guaranty if (i) AMD Member has a claim based on a direct contractual obligation or legal duty between the Members arising out of or relating to this Agreement or (ii) AMD Member believes in good faith that it has otherwise suffered damages
as a result of a breach hereunder by Fujitsu Member that exceed independently, or in the aggregate with all previous uncured breaches by Fujitsu Member, one hundred million dollars (U.S.$100,000,000) and (b) AMD may only make a claim or otherwise
enforce rights against Fujitsu under the Fujitsu Guaranty if AMD believes in good faith that it has suffered damages as a result of a breach hereunder by Fujitsu Member that exceed independently, or in the aggregate with all previous uncured
breaches by Fujitsu Member, one hundred million dollars (U.S.$100,000,000). 
  

	 	
12.8	 	Limitation on Claims 

  
 If, based upon a substantially identical underlying factual basis, (A) an arbitrator, court, tribunal or other judicial authority determines in an
enforceable award, judgment or decision that Fujitsu or an Affiliate of Fujitsu shall make payments to, or on behalf of, the Company, and to or on behalf of AMD or an Affiliate of AMD, in satisfaction of a breach of contract claim, indemnification
claim, enforcement action or other legal or equitable claims of 

  

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the Company and of AMD or an Affiliate of AMD (other than in each case, for indemnification of AMD or an Affiliate of AMD against a Third Party Claim (as
defined in the Contribution Agreement)), related to any Transaction Document (as defined in the Contribution Agreement) or the transactions contemplated thereunder, and (B) Fujitsu or its Affiliate makes the payments in satisfaction of the claim of
the Company, the amounts payable to, or on behalf of, AMD or its Affiliate by Fujitsu or its Affiliate shall be reduced by an amount equal to the product of (X) AMD’s Membership Interest at the time of the claim of the Company multiplied by (Y)
the aggregate amount paid by Fujitsu to, or on behalf of, the Company, in satisfaction of the claim of the Company. 
  
 
ARTICLE 13. 
 MISCELLANEOUS 
  

	 	
13.1	 	Amendments 

  
 13.1.1 Joinder. Each Substitute Member shall become a signatory hereto by signing a Joinder Agreement substantially in the form of Exhibit
B, and this Agreement will be deemed to have been amended to give effect to such Joinder Agreement. By so signing, each Substitute Member, as the case may be, shall be deemed to have adopted and to have agreed to be bound by all of the
provisions of this Agreement. 
  
 13.1.2 Requirement; Board
Authority. Any provision of this Agreement may be amended, if, and only if, such amendment is in writing and is duly executed by all Members; provided, however, that amendments may be made to this Agreement from time to time by the Board
of Managers, without the consent of either Member: (a) to delete or add any provision of this Agreement required to be so deleted or added by any Governmental Authority, which addition or deletion is deemed by such Governmental Authority to be for
the benefit or protection of all of the Members; or (b) to take such actions as may be reasonably necessary (if any) to insure that the Company will be treated as a partnership for federal income tax purposes. Upon the making of any amendment to
this Agreement in accordance with the previous sentence, the Board of Managers shall prepare and file such documents and certificates as may be required under the Act and under any other Applicable Law. 
  

	 	
13.2	 	No Waiver 

  
 Any provision of this Agreement may be waived if, and only if, such waiver is in writing and is duly executed by the party against whom the waiver is to
be enforced. No failure or delay by any party in exercising any right, power or privilege under this Agreement shall operate as a waiver thereof nor shall any single or partial waiver or exercise thereof preclude the enforcement of any other right,
power or privilege. 
  

	 	
13.3	 	Entire Agreement 

  
 This Agreement, together with the Contribution Agreement and the other documents, exhibits and schedules referred to herein and therein, constitute the
entire agreement between the parties hereto pertaining to the subject matter hereof, and supersede any and all prior 

  

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oral and written, and all contemporaneous oral, agreements or understandings pertaining thereto. There are no agreements, understandings, restrictions,
warranties or representations relating to such subject matter among the parties other than those set forth herein, in the Contribution Agreement and in the other documents, exhibits and schedules referred to herein and therein. 
  

	 	
13.4	 	Further Assurances 

  
 Each of the parties hereto does hereby covenant and agree on behalf of itself, its successors, and its assigns, without further consideration, to prepare,
execute, acknowledge, file, record, publish, and deliver such other instruments, documents and statements, and to take such other action as may be required by law or reasonably necessary or advisable to effectively carry out the purposes of this
Agreement. 
  

	 	
13.5	 	Notices 

  
 Unless otherwise provided herein, all notices, requests, instructions or consents required or permitted under this Agreement shall be in writing and will
be deemed given: (a) when delivered personally; (b) when sent by confirmed facsimile; (c) ten (10) Business Days after having been sent by registered or certified mail, return receipt requested, postage prepaid; or (d) three (3) Business Days after
deposit with an internationally recognized commercial overnight carrier specifying next-day delivery, with written verification of receipt. All communications will be sent to the addresses listed on Exhibit A (or to such other address
or facsimile number as may be designated by a party giving written notice to the other parties pursuant to this Section 13.5). 
  

	 	
13.6	 	Tax Matters 

  
 13.6.1 Tax Matters Partner. 
  
 (a) The Company shall file an election pursuant to Code Section 6231(a)(1)(B)(ii) to have Code Section 6231(a)(1)(B)(i) not apply. For so long as AMD
Member and/or any of its Affiliates has an aggregate Percentage Interest greater than fifty percent (50%), AMD Member shall serve as the Company’s “Tax Matters Partner” (as defined in Code Section 6231(a)(7)) and shall perform any
similar or corresponding role under applicable state law. The Tax Matters Partner shall perform the duties imposed on a Tax Matters Partner under the Code and shall be entitled to expend Company funds for (or to be reimbursed for) reasonable
third-party costs relating thereto. All legal and accounting fees relating to any audits of the Company shall be borne by the Company; provided, that the Members shall bear the costs of any audits of their separate tax returns. In the event the
United States Internal Revenue Service or any other applicable Governmental Authority notifies the Tax Matters Partner of any proposed Proceeding relating to the Company’s information or tax returns or to the amount of the liability of the
Company for any Tax, the Tax Matters Partner shall promptly notify the other Members of such matter, shall provide relevant factual information (to the extent known) describing any asserted liability for Tax in reasonable detail and shall provide
copies of any notice or other documents received from the Internal Revenue Service or other applicable Governmental Authority with respect to such matter. The Tax Matters Partner shall at all times 

  

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keep the other Members informed as to the status of all such Proceedings and shall permit each other Member to Participate fully in that portion of any
Proceeding relating to Taxes for which it may have liability under Article X of the Contribution Agreement. Any such right to Participate shall not limit the rights any such other Member may otherwise have under Applicable Law. In the event that a
proposed adjustment relating to any “partnership item” (as defined in Code Section 6231(a)(3)) or any similar or corresponding item under applicable state law is an item for which any Member is or potentially may be an Indemnifying Party
pursuant to Article X of the Contribution Agreement, the Company shall not enter into any settlement agreement or otherwise agree to any settlement with respect to such partnership item without the consent of the Indemnifying Party. 
  
 (b) The Member designated as Tax Matters Partner is hereby authorized to
make all elections available to the Company for federal, state, local, and foreign tax purposes, except that in no event shall the Company file an election to be treated as a corporation or as an association taxable as a corporation for United
States federal income tax purposes or for purposes of income or corporate franchise tax purposes under the law of any State of the United States. In respect of any tax elections that the Company may be eligible or required to make under the laws of
Japan, the Tax Matters Partner shall consult with appropriate officers or other personnel employed by FASL (Japan). 
  
 (c) The Tax Matters Partner shall prepare or cause to be prepared all appropriate income and information tax returns for the Company; provided, that if
the Company is required to file tax returns with any national or sub-national Governmental Authority in Japan, such returns shall be prepared by a qualified Japanese audit corporation under the supervision of the Board of Managers (which supervisory
responsibility may be delegated to the Tax Matters Partner who shall request assistance from FASL (Japan) to the extent that the Tax Matters Partner reasonably determines that such assistance would be in the best interest of the Company.
All such returns shall be subject to review by the other Member(s) before filing and shall be delivered to the other Member(s) for review not fewer than ten (10) Business Days in advance of the due date thereof (taking into account any
extensions actually obtained); provided, however, that the Tax Matters Partner shall use its best efforts to provide Fujitsu Member with 30 days advance notice if the Tax Matters Partner intends that the Company will take any position on Form 1065
as to which a disclosure will be filed on IRS Form 8275 (or any variation thereof) or as to which the Tax Matters Partner believes that “substantial authority” (within the meaning of Code Section 6662) is or may be lacking, and thereafter,
if so requested by Fujitsu Member, shall consult with Fujitsu Member concerning such position. All third-party costs and expenses reasonably incurred by the Tax Matters Partner in performing its duties described in this Section 13.6 or otherwise in
accordance with the terms of this Agreement (including legal and accounting fees) shall be borne by the Company. Each Member shall provide to the Tax Matters Partner such information as the Tax Matters Partner deems necessary or appropriate in
connection with its activities as Tax Matters Partner; provided, however, that in no event will Fujitsu Member be required to disclose to the Tax Matters Partner or the Company copies of any Tax returns filed by Fujitsu Member or any Affiliate of
Fujitsu Member. The Tax Matters Partner shall cooperate with the Members by providing to each Member such information as the 

  

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Member may reasonably request concerning the Company and its transactions in connection with the determination of such Member’s liability for any Tax or
any Proceeding relating thereto. 
  
 (d) Notwithstanding any
other provisions of this Agreement, Fujitsu Member shall have the right, by written notice to AMD Member, to require that the Company’s United States federal, state and local information tax returns be prepared by a certified public accounting
firm in the event that any of the following occur: (i) the Company fails to file any required IRS Form 1065 (or successor Form) or corresponding returns or reports for the States of Texas or California on a timely basis (taking into account any
extensions actually obtained); (ii) the Company fails to provide to Fujitsu Member the information described in Section 7.10(b) within the applicable time periods set forth in such Section; (iii) penalties under Code Sections 6662 or 6663 are
imposed on Fujitsu Member due to the negligence or fraud (as such terms are defined in Sections 6662 and 6663 and the Regulations thereunder) of AMD Member or an Affiliate of AMD Member in preparing tax filings in respect of the Company; or (iv) the
Company fails to receive, on a timely basis (not less frequently than annually in advance of filing its Form 1065), an opinion of counsel that after review of materials prepared by the Company to comply with the requirements of Code Section 6222(e)
and Section 1.6662-6(d) of the Regulations, given the applicable data and pricing methods, the Company reasonably concluded that the method applied for each of the various intercompany transactions described in such materials provides the most
reliable measure of an arm’s length result under the best methods rule of Section 1.482-1(c) of the Regulations. 
  
 (e) In the event that the Company’s tax returns are prepared by a certified public accounting firm, all determinations of the amounts of the
Members’ Tax Liability Distributions pursuant to Section 5.1.1 shall thereafter be made on a basis consistent with the treatment of particular items or types of transactions taken on the Company’s returns as so prepared (to the extent
positions have been taken with respect to particular items or types of transactions) unless (i) a change in applicable tax law renders such treatment no longer proper, (ii) the Company receives advice from such certified public accounting firm or
outside tax counsel (not including persons employed by the Tax Matters Partner) that another treatment should be followed, or (iii) the Members mutually agree otherwise. If any of the conditions described in clauses (i), (ii) or (iii) of the
preceding sentence applies, Tax Liability Distributions shall be calculated consistently with the expected tax treatment of such items based on such change in law, professional advice or mutual agreement. 
  
 (f) The provisions of this Section 13.6 shall survive the termination or
dissolution of the Company and shall remain binding on the Members for such period of time as is necessary to resolve any and all matters regarding the Tax treatment of the Company and Tax items attributable to the Company. 
  
 13.6.2 Standards. Except as set forth in Section 13.6.3, the Tax
Matters Partner and its Affiliates shall not be liable, responsible, or accountable, in damages or otherwise, to the Company or to any other Member(s) for doing any act or failing to do any act, with respect to the Tax Matters Partner’s duties
set forth in this Section 13.6 or otherwise performed, the effect of 

  

 90 
  

 Confidential treatment has been requested for portions of this exhibit. The copy filed herewith omits the
information subject to the confidentiality request. Omissions are designated as ****. A complete version of the exhibit has been filed separately with the Securities and Exchange Commission. 

 
which may cause or result in loss or damage to the Company or any Member(s), unless the Tax Matters Partner or one of its Affiliates engages in gross
negligence or willful misconduct. 
  
 13.6.3 Indemnity.
Notwithstanding any other provision of this Agreement, in the event that a positive Tax Liability Distribution Adjustment pursuant to Section 5.1.1 herein is made in respect of Fujitsu Member in respect of any Fiscal Year of the Company, the Company
shall indemnify and hold harmless Fujitsu Member for any resulting penalties and interest. Any payment made to Fujitsu Member pursuant to the preceding sentence of this Section 13.6.3 shall be treated as a guaranteed payment within the meaning of
Code Section 707(c). The amount of any payments made pursuant to this Section 13.6.3 shall be determined so as to fully indemnify Fujitsu Member for such penalties and interest after taking into account the amount of income Tax required to be paid
by Fujitsu Member with respect to such amount (for this purpose, the payment shall be treated as being subject to income Tax at the Tax Distribution Rate applicable to the year in which such amount is includible in taxable income by Fujitsu Member)
and the Tax benefit of the corresponding deduction allocated to Fujitsu Member by the Company (which deduction shall be treated as providing a Tax benefit at the Tax Distribution Rate applicable to Fujitsu Member for its taxable year with or within
which ends the taxable year of the Company for which such amount is properly deductible by the Company). 
  

	 	
13.7	 	Governing Law 

  
 This Agreement will be governed by and construed in accordance with the laws of the State of Delaware, United States of America, as applied to agreements
among Delaware residents entered into and wholly to be performed within the State of Delaware (without reference to any choice or conflicts of laws rules or principles that would require the application of the laws of any other jurisdiction).

  

	 	
13.8	 	Construction; Interpretation 

  
 13.8.1 Certain Terms. The words “hereof,” “herein,” “hereunder” and similar words refer to this Agreement as a whole
and not to any particular provision of this Agreement. The term “including” is not limited and means “including without limitation.” 
  
 13.8.2 Section References; Titles and Subtitles. Unless otherwise noted, all references to Sections, Schedules and Exhibits herein are to Sections,
Schedules and Exhibits of this Agreement. The titles, captions and headings of this Agreement are inserted for convenience of reference only and are not intended to be a part of or to affect the meaning or interpretation of this Agreement.

  
 13.8.3 Reference to Persons, Agreements, Statutes.
Unless otherwise expressly provided herein, (i) references to a Person include its successors and permitted assigns, (ii) references to agreements (including this Agreement) and other contractual instruments shall be deemed to include all subsequent
amendments, restatements and other modifications thereto or supplements thereof and (iii) references to any statute or regulation are to be construed as including all statutory and regulatory provisions consolidating, amending, replacing,
supplementing or interpreting such statute or regulation. 
  

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 Confidential treatment has been requested for portions of this exhibit. The copy filed herewith omits the
information subject to the confidentiality request. Omissions are designated as ****. A complete version of the exhibit has been filed separately with the Securities and Exchange Commission. 

 13.8.4 Presumptions. No party, nor its counsel, shall be deemed the drafter of this Agreement for
purposes of construing the provisions of this Agreement, and all provisions of this Agreement shall be construed in accordance with their fair meaning, and not strictly for or against any party. 
  

	 	
13.9	 	Rights and Remedies Cumulative 

  
 The rights and remedies provided by this Agreement are cumulative and the use of any one right or remedy by any party shall not preclude or waive its
right to use any or all other remedies. Said rights and remedies are given in addition to any other rights the parties may have by law, statute, ordinance or otherwise. 
  

	 	
13.10	 	No Assignment; Binding Effect 

  
 Except as otherwise expressly provided herein, no party may assign, delegate or otherwise transfer any of its rights or obligations hereunder without the
prior written consent of each other party. Any attempted assignment in violation of the foregoing shall be null and void. Subject to the foregoing, this Agreement shall be binding on and inure to the benefit of the Members, their heirs, executors,
administrators, successors and all other Persons hereafter holding, having or receiving an interest in the Company, whether as Assignees, Substitute Members or otherwise. 
  

	 	
13.11	 	Language 

  
 This Agreement is in the English language only, which language shall be controlling in all respects, and all versions hereof in any other language shall
be for accommodation only and shall not be binding upon the parties. All communications and notices to be made or given pursuant to this Agreement shall be in the English language. 
  

	 	
13.12	 	Severability 

  
 If any provision in this Agreement will be found or be held to be invalid or unenforceable, then the meaning of said provision will be construed, to the
extent feasible, so as to render the provision enforceable, and if no feasible interpretation would save such provision, it will be severed from the remainder of this Agreement which will remain in full force and effect unless the severed provision
is essential and material to the rights or benefits received by any party. In such event, the parties will use their respective best efforts to negotiate, in good faith, a substitute, valid and enforceable provision or agreement which most nearly
affects the parties’ intent in entering into this Agreement. 
  

	 	
13.13	 	Counterparts 

  
 This Agreement may be executed in counterparts, each of which so executed will be deemed to be an original and such counterparts together will constitute
one and the same agreement. Execution and delivery of this Agreement by exchange of facsimile copies bearing 

  

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 Confidential treatment has been requested for portions of this exhibit. The copy filed herewith omits the
information subject to the confidentiality request. Omissions are designated as ****. A complete version of the exhibit has been filed separately with the Securities and Exchange Commission. 

 
the facsimile signature of a party shall constitute a valid and binding execution and delivery of this Agreement by such party. 
  

	 	
13.14	 	Dispute Resolution 

  
 The parties hereby agree that claims, disputes or controversies of whatever nature, arising out of, in connection with, or in relation to the
interpretation, performance or breach of this Agreement (or any other agreement contemplated by or related to this Agreement), shall be resolved in accordance with the dispute resolution procedures set forth in Schedule A. 

 

	 	
13.15	 	Third-Party Beneficiaries 

  
 None of the provisions of this Agreement shall be for the benefit of or be enforceable by any creditor of the Company or by any third-party creditor of
any Member. This Agreement is not intended to confer any rights or remedies hereunder upon, and shall not be enforceable by, any Person other than the parties hereto (including, for the avoidance of doubt, AMD and Fujitsu as parties hereto with
respect to all applicable provisions hereof), their respective successors and permitted assigns and, solely with respect to the provision of Section 7.11, each Indemnitee and each other indemnified Person addressed therein. 
  

	 	
13.16	 	Specific Performance 

  
 The parties agree that irreparable damage will result if this Agreement is not performed in accordance with its terms, and the parties agree that any
damages available at law for a breach of this Agreement would not be an adequate remedy. Therefore, the provisions hereof and the obligations of the parties hereunder shall be enforceable in a court of equity, or other tribunal with jurisdiction, by
a decree of specific performance, and appropriate injunctive relief may be applied for an granted in connection therewith. Such remedies and all other remedies provided for in this Agreement shall, however, be cumulative and not exclusive and shall
be in addition to any other remedies that a party may have under this Agreement, at law or in equity. 
  

	 	
13.17	 	Consequential Damages 

  
 No party shall be liable to any other party under any legal theory for indirect, special, incidental, consequential or punitive damages, or any damages
for loss of profits, revenue or business, even if such party has been advised of the possibility of such damages (it being understood that (i) diminution in value of Membership Interest shall not be considered to fall within any such category of
damages and (ii) a claim seeking to recover diminution in value shall not be limited by operation of this Section 13.17). 
  
 (Signature Page Follows) 
  

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 Confidential treatment has been requested for portions of this exhibit. The copy filed herewith omits the
information subject to the confidentiality request. Omissions are designated as ****. A complete version of the exhibit has been filed separately with the Securities and Exchange Commission. 

 IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement as of the day and year first
above written. 
  

	MEMBERS
	
	 AMD INVESTMENTS, INC.

		
	 By:
	 	 /s/ Thomas M. McCoy

	 Name:
	 	 Thomas M. McCoy

	 Title:
	 	 Vice President and Secretary

	
	 FUJITSU MICROELECTRONICS
 HOLDING, INC.

		
	 By:
	 	 /s/ Kazuo Iida

	 Name:
	 	 Kazuo Iida

	 Title:
	 	 President

	
	NON-MEMBERS
	
	 ADVANCED MICRO DEVICES, INC.

		
	 By:
	 	 /s/ Thomas M. McCoy

	 Name:
	 	 Thomas M. McCoy

	 Title:
	 	 Senior Vice President, General Counsel

	 Address:
	 	 One AMD Place

	 	 	 Sunnyvale, California 94086

	 Facsimile:
	 	 (408) 774-7399

	
	 FUJITSU LIMITED

		
	 By:
	 	 /s/ Hiroaki Kurokawa

	 Name:
	 	 Hiroaki Kurokawa

	 Title:
	 	 President and Representative Director

	 Address:
	 	                                       
                                        
   

	 	 	                                       
                                        
   

	 Facsimile:
	 	                                       
                                        
   

  
 Schedule
S-1 
  

 Confidential treatment has been requested for portions of this exhibit. The copy filed herewith omits the
information subject to the confidentiality request. Omissions are designated as ****. A complete version of the exhibit has been filed separately with the Securities and Exchange Commission.

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