Document:

Form of Management Continuity Agreement

 Exhibit 10.18 
  
 ADVANCED MICRO DEVICES, INC. 
  

Management Continuity Agreement 
  
 Dear             : 
  
 Advanced Micro Devices, Inc. (the “Company”) considers the establishment and maintenance of a sound and vital
management to be essential to protecting and enhancing the best interests of the Company and its stockholders. The Company recognizes that, as is the case with many publicly held corporations, the possibility of a change of control may exist and
that the uncertainty and questions which such possibility may raise among management may result in the departure or distraction of management personnel to the detriment of the Company and its stockholders. Accordingly, the non-management members of
the Company’s Board of Directors have determined that it is imperative to be able to rely upon management’s continuance and that appropriate steps should be taken to reinforce and encourage the continued attention and dedication of members
of the Company’s management, including you, to their assigned duties without distraction in the face of the potentially disturbing circumstances arising from the possibility of a change of control of the Company. 
  
 In order to induce you to remain in the employ of the Company under such
circumstances, this letter agreement sets forth the benefits which the Company agrees will be provided to you in the event there is a “Change of Control” of the Company under the circumstances described below. (“Change of
Control” is defined in Section 1.) In addition, the Company is also willing to agree to provide you the benefits described herein in consideration of your agreement to the arbitration provisions set forth in Section 14 hereof. 
  
 1. Change of Control. For purposes of this Agreement, a “Change
of Control” shall mean a change of control of a nature which would be required to be reported in response to Item 6(e) of Schedule 14A of Regulation 14A promulgated under the Securities Exchange Act of 1934, as amended (“Exchange
Act”) or in response to any other form or report to the Securities and Exchange Commission or any stock exchange on which the Company’s shares are listed which requires the reporting of a change of control. In addition, a Change of Control
shall be deemed to have occurred if (i) any “person” (as such term is used in Sections 13(d) and 14(d) of the Exchange Act) is or becomes the beneficial owner, directly or indirectly, of securities of the Company representing more than 20%
of the combined voting power of the Company’s then outstanding securities; or (ii) in any two year period, individuals who were members of the Board of Directors (the “Board”) at the beginning of such period plus each new director
whose election or nomination for election was approved by at least two-thirds of the directors in office immediately prior to such election or nomination, cease for any reason to constitute at least a majority of the Board, or (iii) a majority of
the members of the Board in office prior to the happening of any event and who are still in office after such event, determines in its sole discretion within one year after such event, that as a result of such event there has been a Change of
Control. 
  

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 Notwithstanding the foregoing definition, “Change of Control” for purposes of this Agreement,
shall exclude the acquisition of securities representing more than 20% of the combined voting power of the Company by the Company, any of its wholly owned subsidiaries, or any trustee or other fiduciary holding securities of the Company under an
employee benefit plan now or hereafter established by the Company. As used herein, the term “beneficial owner” shall have the same meaning as under Section 13(d) of the Exchange Act, and related case law. 
  
 2. Term. This Agreement shall become effective immediately on the
delivery of fully executed copies to both parties, and shall continue until canceled pursuant to the notice of either party. Either party hereto may provide written notice to the other of cancellation of this Agreement, to take effect on the date
specified in such notice, but in no event shall such cancellation take effect less than two years from the date on which notice is given. Such notice shall be furnished in accordance with Section 11 of this Agreement. 
  
 3. Tax Indemnity. 
  
 (a) If all or any portion of the amounts payable to you on your behalf under
this Agreement or otherwise are subject to the excise tax imposed by Section 4999 of the Internal Revenue Code of 1986, as amended (or similar state tax and/or assessment), the Company shall pay to you an amount necessary to place you in the same
after-tax position as you would have been in had no such excise tax been imposed. The amount payable pursuant to the preceding sentence shall be increased to the extent necessary to pay income and excise taxes due on such amount. The determination
of the amount of any such tax indemnity shall initially be made by the independent accounting firm employed by the Company immediately prior to the Change of Control. 
  
 (b) If at a later date it is determined (pursuant to final regulations or published rulings of the IRS, final judgment of a
court of competent jurisdiction or otherwise) that the amount of excise taxes payable by you is greater than the amount initially so determined, then the Company (or its successor) shall pay you an amount equal to the sum of (1) such additional
excise taxes (2) any interest, fines and penalties resulting from such underpayment, plus (3) and amount necessary to reimburse you for any income, excise or other taxes payable by you with respect to the amounts specified in (1) and (2) above, and
the reimbursement provided by this clause (3). If at a later date it is determined (pursuant to final regulations or published rulings of the IRS, final judgment of a court of competent jurisdiction or otherwise) that the amount of excise taxes
payable by you is lesser than the amount initially so determined, then you shall pay to the Company (or its successor) an amount equal to such overpayment to the extent such is refunded to you. 
  
 (c) By signing this agreement, you and the Company both agree to cooperate
with the person(s) calculating the amount of the tax indemnity, and will provide copies of whatever tax returns and other documents may be necessary to perform the calculation. 
  
 4. Termination of Employment Following Change of Control. If any of the events described in Section 1 hereof
constituting a Change of Control shall have occurred, you shall be entitled to the benefits provided in Section 5 hereof upon the actual termination by the Company 
  

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 or “Constructive Termination” of your employment within two years after such Change of Control, unless such
termination is by the Company for Cause. 
  
 (a)
Constructive Termination. For purposes of this Agreement, “Constructive Termination” shall mean a resignation by you due to any diminution or adverse change in the circumstances of your employment as determined in good faith
by you, including, without limitation, your reporting relationships, job description, duties, responsibilities, compensation, perquisites, office or location of employment. 
  
 (b) Cause. For the purposes of this Agreement, the Company shall have a “Cause” to terminate your
employment if you are determined by a court of law or pursuant to arbitration under Section 14 to have committed a willful act of embezzlement, fraud or dishonesty which resulted in material loss, material damage or material injury to the Company.
In such an event, you shall have no rights under this Agreement. 
  
 (c) Notice of Termination. Any termination of your employment by the Company or by you for any reason whatsoever during the term of this Agreement shall be communicated by written notice of termination to the other party
hereto (“Notice of Termination”). 
  
 (d) Date of
Termination. “Date of Termination” shall mean a date which is within two years after a Change of Control and is either (1) the date specified in the Notice of Termination, if your employment is terminated by you during the term
hereof: or (2) the date on which a Notice of Termination is given, if your employment is terminated for any other reason. 
  
 5. Benefits Upon Termination Following a Change Of Control. 
  
 (a) Amount of Benefits. The Company shall provide to you as soon as practicable, but not more than ten
business days following the Date of Termination subsequent to a Change of Control of the Company, each of the following benefits: 
  
 (1) Severance Benefit. The Company shall pay you a lump sum severance benefit which shall equalthree times the sum of (A) your Base
Compensation, plus (B) the average of the two highest annual bonuses paid to you during the last five full calendar years immediately prior to the Change of Control. For purposes of this Section 5(a)(1), “Base Compensation” means your rate
of annual salary, as in effect for the twelve-month period ending on the date six months prior to the Change of Control or on the Date of Termination, whichever is higher. Base Compensation does not include elements such as bonuses, reimbursement of
interest paid on guaranteed loans, auto allowances, nor any income from equity based compensation, such as may result from the exercise of stock options or stock appreciation rights, or the receipt of restricted stock awards or the lapse of
restrictions on such awards. If you were employed by the Company and/or any of its subsidiaries for less than one full calendar year immediately preceding the Change of Control, your “highest annual bonus” will be determined by annualizing
the bonus earned during your period of employment. 
  

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 (2) Equity Compensation. All unvested stock options, stock appreciation rights and
restricted stock awards held by you at the time of your Date of Termination shall be deemed fully vested and exercisable as such Date of Termination, provided, that if any such option, right or award would, as a result of such early exercisability
no longer qualify for exemption under Section 16 of the Exchange Act, then such option, right or award shall be fully vested but shall not become exercisable until the earliest date on which it could become exercisable and also qualify for exemption
from Section 16 of the Exchange Act. All vested options held by you, including those deemed fully vested as of the Date of Termination shall become automatically exercisable for a period of one (1) year from the Date of Termination; provided,
however, in no event shall any option remain exercisable beyond the maximum period allowed therefor in the stock option plan under which it was granted. This agreement shall serve as an amendment to all of your outstanding stock options, restricted
stock awards and stock appreciation rights as of the Date of Termination. 
  
 (3) Accrued Bonus. The Company shall pay you an amount equal to the pro rata amount of the annual bonus accrued under the Company’s Executive Bonus Plan for the portion of the year to the Date of
Termination. 
  
 (4) Company Car. The
Company shall allow you the continued use of the Company automobile, on the same terms which existed prior to the Change of Control, for twelve (12) months following the Date of Termination. 
  
 (5) Financial and Tax Planning. The Company shall
provide you with continued personal financial planning and tax planning services up to $4,000 for twelve (12) months following the Date of Termination. 
  
 (6) Other Benefits. The Company shall provide for a period of twelve(12) months following the Date of Termination, health and
welfare benefits at least comparable to those benefits in effect on your Date of Termination, including but not limited to medical, dental, disability, dependent care, and life insurance coverage. At the Company’s election, health benefits may
be provided by reimbursing you for the cost of converting a group policy to individual coverage, or for the cost of extended COBRA coverage. The Company shall also pay you an amount calculated to pay any income taxes due as a result of the payment
by the Company on your behalf for such health benefits. Such tax payment shall be calculated to place you in the same after-tax position as if no such income had been imposed. 
  
 (b) Other Benefits Payable. The benefits described in subsection (a) above shall be payable in addition to,
and not in lieu of, all other accrued or vested or earned but deferred compensation, rights, options or other benefits which may be owed to you following termination of your employment, irrespective of whether your termination was preceded by a
Change of Control, including but not limited to accrued vacation or sick pay, amounts or benefits payable under any employment agreement or any bonus or other compensation plans, stock option plan, stock ownership plan, stock purchase plan, life
insurance plan, health plan, disability plan or similar plan. 
  

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 6. Payment Obligations Absolute. The Company’s obligation to pay the benefits described
herein shall be absolute and unconditional and shall not be affected by any circumstances, including, without limitation, any set-off, counterclaim, recoupment, defense or other right which the Company or any of its subsidiaries may have against you
or anyone else. In the event of any dispute concerning your right to payment, the Company shall nevertheless continue to pay to you your Base Compensation (as such term is defined in Section 5) until the dispute is resolved. Any such amounts paid
following your termination of employment shall be credited against the amounts otherwise due to you under this Agreement or, in the event the Company prevails, shall be repaid to the Company. 
  
 7. Legal Fees. The Company shall also pay forthwith upon written
demand from you all legal fees and expenses reasonably incurred by you in seeking to obtain or enforce any right or benefit provided by this Agreement. In the event you do not prevail in any ensuing arbitration or litigation, the Company shall
absorb its own costs, expenses, and attorneys’ fees, and you shall reimburse the Company for one-half of your costs, expenses, and attorneys’ fees. 
  
 8. Mitigation. You shall not be required to mitigate the amount of any payment provided for in this Agreement by seeking other employment or
otherwise, nor shall the amount of any payment provided for in this Agreement be reduced or offset in any way whatsoever by any amount received by you for any reason whatsoever from another employer or otherwise after the Date of Termination.

  
 9. Indemnification. For at least six years following a
Change of Control, you shall continue to be indemnified under the Company’s Certificate of Incorporation and Bylaws at least to the same extent as prior to the Change of Control, and you shall be covered by the directors’ and officers
liability insurance, the fiduciary liability insurance and the professional liability insurance policies that are the same as, or provide coverage at least equivalent to, those the Company carried prior to the Change of Control. 
  
 10. Successors; Binding Agreement. 
  
 (a) The Company will require any successor ( whether direct or indirect, by
purchase, merger, consolidation or otherwise) to all or substantially all of the business and/or assets of the Company, to expressly assume and agree to perform this Agreement in the same manner and to the same extent that the Company would be
required to perform it if no such succession had taken place. Failure of the Company to obtain such agreement prior to the effectiveness of any such succession shall be a breach of this Agreement and shall entitle you to compensation from the
Company in the same amount and on the same terms as you would be entitled hereunder if the Company had terminated your employment without Cause after a Change of Control, except that for purposes of implementing the foregoing, the date on which any
such succession becomes effective shall be deemed the Date of Termination. As used in this Agreement, “Company” shall mean the Company as hereinabove defined and any successor to its business and/or assets as aforesaid which executes and
delivers the agreement provided for in this Section or which otherwise becomes bound by all the terms and provisions of this Agreement by operation of law. 
  

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 (b) This Agreement shall terminate upon your death except that if you should die while you are entitled
to receive any amounts under this Agreement but which are unpaid at your date of death, all such amounts, unless otherwise provided herein, shall be paid in accordance with the terms of this Agreement to your devisee, legatee, or other designee or,
if there be no such designee, to your estate. This Agreement shall inure to the benefit of and be enforceable by your personal or legal representatives, executors, administrators, successors, heirs, distributees, devisees, and legatees. 

 
 11. Notice. For the purposes of this Agreement, notices and all
other communications provided for in the Agreement shall be in writing and shall be deemed to have been duly given when delivered or mailed by the United States registered mail, return receipt requested, postage prepaid, addressed to the respective
addresses set forth on the first page of this Agreement, provided that all notices to the Company shall be directed to the Chairman of the Board of Directors of the Company with a copy to the Secretary of the Company, or such other address as either
party may have furnished to the other in writing in accordance herewith, except that notices of change of address shall be effective only upon receipt. 
  
 12. Amendments. No provisions of this Agreement may be modified, waived or discharged unless such waiver, modification or discharge is agreed to in
writing signed by you and the Company’s Chief Executive Officer. No waiver by either party hereto at any time or any breach by the other party hereto of, or compliance with, any condition or provision of this Agreement to be performed by such
other party shall be deemed a waiver of similar or dissimilar provisions or conditions at the same or at any prior or subsequent time. 
  
 13. Validity. The invalidity or unenforceability of any provisions of this Agreement shall not affect the validity or enforceablity of any other
provision of this Agreement, which shall remain in full force and effect. 
  
 14. Arbitration. 
  
 (a)
Arbitration shall be the exclusive and final forum for settling any disagreement, dispute, controversy or claim arising out of or in any way related to (i) this Agreement or the subject matter thereof or the interpretation hereof or any arrangements
relating hereto or contemplated herein or the breach, termination or invalidity hereof; or (ii) the provision of or failure to provide any other benefits upon a Change of Control pursuant to any other employment agreement, bonus or compensation
plans, stock option plan, stock ownership plan, stock purchase plan, life insurance plan or similar plan or agreement with the Company and/or any of its subsidiaries as Change of Control may be defined in such other agreement or plan, which benefits
constitute “parachute payments” within the meaning of Section 280G of the Code. If this Section 14 conflicts with any provision in any such compensation or bonus plan, stock option plan, or any other similar plan or agreement, this
provision requiring arbitration shall control. 
  

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 (b) The arbitration shall be conducted in accordance with the Commercial Arbitration Rules (the
“Arbitration Rules”) of the American Arbitration Association (the “AAA”). 
  
 (c) The arbitral tribunal shall consist of one arbitrator. Except as otherwise provided in Section 8, the Company shall pay all the fees, if any, and expenses of such arbitration. 
  
 (d) The arbitration shall be conducted in San Jose or in any other city in
the United States of America as the parties to the dispute may designate by mutual written consent. 
  
 (e) Any decision or award of the arbitral tribunal shall be final and binding upon the parties to the arbitration proceeding. The parties hereto hereby
waive to the extent permitted by law any rights to appeal or to review of such award by any court or tribunal. The parties hereto agree that the arbitral award may be enforced against the parties to the arbitration proceeding or their assets
wherever the award may be entered in any court having jurisdiction thereof. 
  
 (f) The parties stipulate that discovery may be had in any such arbitration proceeding as provided in Section 1283.05 of the California Code of Civil Procedure, as may be amended or revised from time to time.

  
 15. Counterparts. This Agreement may be executed in one
or more counterparts, each of which shall be deemed to be an original but all of which together will constitute one and the same instrument. 
  
 16. Withholding of Taxes. The Company may withhold from any amounts payable under this Agreement all federal, state, city, or other taxes as shall
be required pursuant to any law or government regulation or ruling. 
  
 17. Nonassignability. This Agreement is personal in nature and neither of the parties hereto shall, without the consent of the other, assign or transfer this Agreement or any rights or obligations hereunder, except as provided in
Section 10 above. Without limiting the foregoing, your right to receive payments hereunder, shall not be assignable or transferable, whether by pledge, creation of a security interest or otherwise, other than by a transfer by will or by the laws of
descent and distribution and in the event of any attempted assignment or transfer contrary to this Section the Company shall have no liability to pay any amounts so attempted to be assigned or transferred. 
  
 18. No Right to Employment. Nothing in this Agreement shall confer on
you any right to continue in the employ of the Company, or shall interfere with or restrict in any way the rights of the Company, which are hereby expressly reserved, to discharge you at any time for any reason whatsoever, with or without cause.

  
 19. Miscellaneous. No agreements or representations,
oral or otherwise, express or implied, with respect to the subject matter hereof have been made by either party which are not set forth expressly in this Agreement. This Agreement shall not affect your rights under any pension, welfare or fringe
benefit arrangements of the Company under which you are entitled to receive any benefits. The validity, interpretation, construction and performance of this 
  

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 Agreement shall be governed by the laws of the State of Delaware. The provisions of this Agreement, and any payment
provided for hereunder, shall not reduce any amounts otherwise payable, or in any way diminish your existing rights, or rights which would accrue solely as a result of the passage of time, under any employment agreement or other contract, plan or
agreement with the Company. 
  
 If this letter correctly sets
forth our agreement on the subject matter hereof, kindly sign and return to the Company the enclosed copy of this letter which will then constitute our agreement on this subject. 
  

			
	 Sincerely,

	
	 ADVANCED MICRO DEVICES, INC.

		
	 By:
	 	  

  
 Agreed to this
             day 
  
 of                      20     
  
  

	
	

	                     (Signature)

  

 8Letter Agreement

 Exhibit 10.36(b) 
  
 CONFIDENTIAL TREATMENT REQUESTED 
 License Reference Number: L044620 
  
 LETTER AGREEMENT 
  
 This Letter Agreement
(“Agreement”), having an Effective Date of September 13, 2004, is entered into by and between ADVANCED MICRO DEVICES, INC., a Delaware corporation having an office at Sunnyvale, California (“AMD”), and INTERNATIONAL BUSINESS
MACHINES CORPORATION, a New York corporation, having an office at Burlington, Vermont (“IBM”). 
  
 WHEREAS, AMD and IBM previously entered into three (3) technology license agreements relating to a technology known as C-4 plating technology in which
certain license rights were granted to AMD; 
  
 WHEREAS, AMD and
IBM desire to extend the license rights previously granted therein to AMD. 
  
 NOW, THEREFORE, AMD and IBM agree as follows: 
  
 Section 1 – Definitions 
  
 “Another
Manufacturer” shall have the meaning in the C-4 Plating Technology Transfer and Licensing Agreement. 
  
 “Bumping” shall have the meaning in the C-4 Plating Technology Transfer and Licensing Agreement. 
  
 “Bumped” shall mean an Integrated Circuit after the process of Bumping has been performed. 
  
 “C-4 Agreements” shall mean, collectively, the C-4 Plating Technology Transfer and Licensing Agreement, C-4 Tighter Pitch Workshop
Agreement, and C-4 Technical Assistance and Short Loop Support Agreement. 
  
 “C-4 Plating Technology Transfer and Licensing Agreement” shall mean the C-4 Plating Technology Transfer and Licensing Agreement between AMD and IBM having a last signature date of April 29, 1999. 
  
 “C-4 Tighter Pitch Workshop Agreement” shall mean the C-4 Tighter Pitch Workshop
Agreement between AMD and IBM having a last signature date of March 23, 2001. 
  

			
	 AMD/IBM Confidential
	 	Execution Copy      
	 	 	September 13, 2004

 1 

 “C-4 Technical Assistance and Short Loop Support Agreement” shall mean the C-4 Technical Assistance and Short
Loop Support Agreement between AMD and IBM having a last signature date of July 16, 2001. 
  
 “Dresden Facility” shall mean an AMD Subsidiary that owns and operates AMD’s 300mm semiconductor manufacturing production line located in Dresden, Germany, wherein all of the remaining ownership
interest is solely owned or controlled, directly or indirectly, by (i) one or more corporations, companies or other entities (including a government entity) which are purely financial investors who are not engaged in the design, development,
manufacture, marketing or sale of Licensed Products, and/or by (ii) up to two (2) other owners that are neither government or financial owners; provided, however, that the ownership percentage of all of such owners other than AMD, singly or in the
aggregate, shall not be at or above fifty percent (50%). Such entity shall be considered the Dresden Facility which is entitled to retain the licenses and other benefits provided by this Agreement to the Dresden Facility only so long as such
ownership and control percentage by AMD and other specified entities in the Dresden Facility exists. 
  
 “Integrated Circuit” shall have the meaning in the C-4 Plating Technology Transfer and Licensing Agreement. 
  
 “Licensed Products” shall have the meaning in the C-4 Plating Technology Transfer and Licensing Agreement. 
  
 “Subsidiary” shall have the meaning in the C-4 Plating Technology Transfer and
Licensing Agreement. 
  
 Section 2 – Licenses 
  
 2.1 IBM, on behalf of itself and its Subsidiaries, to the extent it has the right to do so
and subject to Sections 2.2 and 3 of this Agreement, hereby extends the license rights granted to AMD in the C-4 Agreements for AMD to (i) perform Bumping on 300mm semiconductor wafers solely for AMD only in the Dresden Facility, (ii) manufacture
Licensed Products solely for AMD only in the Dresden Facility using Bumping on 300mm semiconductor wafers, (iii) use solely for AMD Licensed Products only in the Dresden Facility using Bumping on 300mm semiconductor wafers, (iv) sell and have sold
worldwide solely under the AMD brand name Licensed Products manufactured using Bumping on 300mm semiconductor wafers, and (v) manufacture only in the Dresden Facility and have manufactured by Another Manufacturer for AMD’s internal use only,
any apparatus designed or modified to implement Bumping of 300mm semiconductor wafers. 
  
 2.2 The license rights extended to AMD in Section 2.1 are nonexclusive, nontransferable, royalty-bearing (as provided for in the surviving terms and conditions of the C-4 Agreements) and revocable (as provided for in the surviving terms and
conditions of the C-4 Agreements). 
  

			
	 AMD/IBM Confidential
	 	Execution Copy      
	 	 	September 13, 2004

 2 

 2.3 Beginning on the Effective Date, IBM hereby grants to AMD, to the extent it has the right to do so and subject to
Section 3, the right to use the Licensed Technology to perform Bumping of 200mm semiconductor wafers for third parties. 
  
 2.4. The license rights granted to AMD in Section 2.3 are nonexclusive, nontransferable, royalty-bearing (as provided for in Section 3) and revocable (as provided for in
the surviving terms and conditions of the C-4 Agreements). 
  
 Section 3
– Compensation 
  
 3.1 In consideration for the licenses granted
hereunder, AMD agrees to pay IBM a license fee in the sum of Eleven Million Two Hundred and Fifty Thousand Dollars ($11,250,000.00), which sum shall be nonrefundable and noncancelable, notwithstanding any termination or expiration of this Agreement.

  
 3.2 The sum specified in Section 3.1 shall be payable without invoice from IBM
according to the following schedule: 
  
 a. Five Million Six
Hundred and Twenty Five Thousand Dollars($5,625,000.00) by September 17, 2004; and 
  
 b. Five Million Six Hundred and Twenty Five Thousand Dollars ($5,625,000.00) by March 13, 2005. 
  
 If the payment pursuant to the obligation set forth in Section 3.2a. is not made when due, then all licenses and other rights granted herein to AMD shall automatically
terminate, and such termination shall be effective retroactively to the Effective Date so that such rights granted herein shall be void ab initio. 
  
 3.3 AMD shall be permitted to perform Bumping of *** (***) 200mm semiconductor wafers per calendar quarter for third parties. For each 200mm semiconductor wafer Bumped
for third parties in excess of the *** (***) per calendar quarter, AMD shall pay IBM a royalty in the amount of *** (***%) of the bumping price charged by AMD to the third parties. AMD’s royalty obligation under Section 3.3 shall begin on the
Effective Date and continue through December 31, ***, after which AMD shall have no further royalty obligation under this Section 3.3, irrespective of AMD thereafter Bumping an unlimited number of 200mm semiconductor wafers for third parties after
December 31, ***. 
  
 3.4 AMD shall maintain a complete, clear and accurate record
of the quantity of all products serviced, sold, leased or otherwise disposed of and any other relevant information to the extent it is required to determine whether AMD is paying the correct royalty amount hereunder. To ensure compliance with the
terms and conditions of this Agreement, IBM shall have the right to audit all relevant accounting and sales books and 
  

	***	Indicates that certain information in this exhibit has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested
pursuant to the Confidential Treatment Request dated November 4, 2004. 

  

			
	 AMD/IBM Confidential
	 	Execution Copy      
	 	 	September 13, 2004

 3 

 records of AMD and the Dresden Facility. The audit will be conducted by a mutually acceptable audit firm and shall be
conducted following reasonable prior written notice (at least forty-five (45) days in advance of such audit) during regular business hours at an office where such records are normally maintained and in such a manner as not to interfere with
AMD’s normal business activities and shall be restricted only to those records necessary to verify AMD’s obligations hereunder. The audit report provided to IBM may only include the information necessary to determine whether or not any
underpayment or overpayment exists, and if it exists, the amount of such underpayment or overpayment. IBM shall instruct the auditor to include only business information in the audit report to IBM. IBM shall use the business information reported by
the auditor only for the purpose of determining royalty payments and for no other purpose. In no event shall audits be made hereunder more frequently than once in every twelve (12) months and the audit shall not cover any records from a period of
time previously audited. If any audit should disclose any underpayment or overpayment, the owing party shall within forty-five (45) days pay the difference. The cost of such audit will be borne by IBM. AMD shall be provided with a copy of the audit
report within a reasonable period of time after its completion. The independent audit firm shall not be hired on a contingent fee basis and shall have confidentiality agreements in place sufficient to protect AMD’s confidential information.

  
 3.5 The royalty of Section 3.3 shall accrue when a product is first serviced,
sold, leased or otherwise disposed of. For the purpose of determining such royalty, products shall be considered serviced, sold, leased or otherwise disposed of when AMD issues to a third party an invoice therefor. If not invoiced, then products are
to be considered serviced, sold, leased or otherwise disposed of when delivered to a third party, or when paid for by such third party if paid for before delivery. If not invoiced, delivered or paid for before delivery, products are to be considered
serviced, sold, leased or otherwise disposed of at the earlier of when put into use or when possession is transferred to a third party. 
  
 3.6 Accrued royalties shall be calculated on a calendar quarter basis. Any royalties due IBM for any calendar quarter shall be paid to IBM by forty-five (45) days after
the immediately preceding calendar quarter. Any accrued royalties paid to IBM are nonrefundable and noncancelable. AMD may deduct from the accrued royalties calculation in this Section 3.6 those royalties accrued on products which have been returned
to AMD and for which credit allowances have been made. 
  
 3.7 Within forty-five
(45) days after the end of each quarter, AMD shall furnish to IBM a written statement showing the number of Bumped 200mm semiconductor wafers for third parties which were serviced, made, used, sold, leased or otherwise disposed of during the
immediately preceding calendar quarter and the royalties payable thereon. If no royalties are payable, that fact shall be shown on such statement. 
  
 3.8 AMD shall bear and pay, and indemnify and hold IBM harmless from any and all taxes (including sales, royalty, value added, and property taxes) imposed by any national
government (including any political subdivision thereof) of any country, as the result of the existence of this Agreement or the exercise of rights hereunder, or arising from the 
  

			
	 AMD/IBM Confidential
	 	Execution Copy      
	 	 	September 13, 2004

 4 

 purchase of goods and services licensed hereunder, and IBM shall not be responsible for any taxes that arise from the
foregoing. Notwithstanding the foregoing, AMD shall not be liable for any taxes or assessments based on the net income of IBM. 
  
 3.9 AMD shall be liable for interest on any and all overdue payments and royalties required to be paid to IBM under this Agreement, commencing on the date such overdue
payment or royalties become due, at an annual rate of eighteen percent (18%). If such interest rate exceeds the maximum legal rate in the jurisdiction where a claim therefor is being asserted, the interest rate shall be reduced to such maximum legal
rate. For avoidance of doubt, all licenses hereunder shall be suspended during any period in which payments or royalties are overdue. 
  
 3.10 All royalties and payments to IBM that result from this Agreement shall be made in United States Dollars (US$) and are to reference this Agreement and be sent by
electronic funds transfer to the following account: 
  
 IBM
Director of Licensing 
 International Business Machines Corporation 
 PNC BANK 
 500 First Avenue 
 Pittsburgh, PA 15219 
 Bank Account Number:
*** 
 ABA Routing Number: *** 
  
 A License Reference Number will be assigned to this Agreement upon execution. This number will be included in all wire transfer payments and tax credit certificates
relating to this Agreement. 
  
 Section 4 – General 

 
 4.1 The surviving terms and conditions of the C-4 Agreements are incorporated by
reference herein and each of the parties to this Agreement shall be bound by such surviving terms and conditions as if literally written herein. In addition, references to “Agreement” in the surviving terms and conditions of the C-4
Agreements shall be deemed to include this Agreement, references to Section 2 in the surviving terms and conditions of the C-4 Agreements shall be deemed to include Section 2 of this Agreement and references to Section 6 in the surviving terms and
conditions of the C-4 Agreements shall be deemed to include Section 3 of this Agreement. In the event of conflict or ambiguity between the surviving terms and conditions of any of the C-4 Agreements, the C-4 Plating Technology Transfer and Licensing
Agreement shall control. In the event of conflict or ambiguity between the terms and conditions of this Agreement and the C-4 Plating Technology Transfer and Licensing Agreement, this Agreement shall control. 
  
 4.2 This Agreement and the terms and conditions made applicable to this Agreement in Section
4.1 are the sole agreement of the parties with respect to the subject matter hereof. 
  

	***	Indicates that certain information in this exhibit has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested
pursuant to the Confidential Treatment Request dated November 4, 2004. 

  

			
	 AMD/IBM Confidential
	 	Execution Copy      
	 	 	September 13, 2004

 5 

 4.3 This Agreement may be executed in two (2) counterparts, each of which shall be deemed an original, but each of which
together shall constitute one and the same agreement. Fax signatures will have the same legal effect as original signatures. 
  
 IN WITNESS WHEREOF, the parties have caused this Agreement to be executed as of the dates written below. 
  

							
	ADVANCED MICRO DEVICES, INC.	 	INTERNATIONAL BUSINESS MACHINES CORPORATION
				
	 By:
	 	 /s/ Daryl Ostrander

	 	 By:
	 	 /s/ Harry C. Calhoun

	 Name:
	 	 Daryl Ostrander
	 	 Name:
	 	 Harry C. Calhoun

	Title:	 	 Senior VP, Logic Technology & Manufacturing, Product
 Technology Implementation CPG
	 	 Title:
	 	VP Strategy – Technology, IBM Systems and Technology Group
		
	 Date: September 15, 2004
	 	 Date: September 15, 2004

  

			
	 AMD/IBM Confidential
	 	Execution Copy      
	 	 	September 13, 2004

 6

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