Document:

AMD Fab 36 Holding Cost Plus Reimbursement Agreement

 Exhibit 10.69 
  
 Execution Copy 
 (Convenience Translation) 
  
 AMD FAB 36 HOLDING COST
PLUS REIMBURSEMENT AGREEMENT 
  
 between 
  
 AMD FAB 36 HOLDING GMBH 
 Wilschdorfer Landstr. 101, 01109 Dresden 
  
 - hereinafter referred to as “AMD Fab 36 Holding” - 
  
 and 
  
 Advanced Micro Devices, Inc. 
 One AMD
Place, Sunnyvale, California 94088, 
 United States of America 
  
 - hereinafter referred to as “AMD Inc.” - 

 RECITALS 
  
 WHEREAS, AMD Fab 36 Holding holds a majority interest in AMD Fab 36 Limited Liability Company & Co. KG having its registered office in Dresden (“AMD Fab
36”). AMD Fab 36 Holding is in turn a wholly-owned Subsidiary of AMD Inc.; 
  
 WHEREAS, AMD Inc., AMD Fab 36 Holding and AMD Fab 36 are currently involved in the planning and implementation stages of a project pursuant to which AMD Fab 36 will use and develop to the production stage
semiconductor manufacturing technology and produce 300 mm Wafers, in particular, for microprocessors, in a newly to be constructed wafer plant in Dresden; 
  
 WHEREAS, concurrently with conclusion of this Agreement (this “Agreement”), AMD Fab 36 and AMD Fab 36 Holding are entering into an AMD Fab 36 Cost Plus
Reimbursement Agreement (as amended from time to time the “AMD Fab 36 Cost Plus Reimbursement Agreement”) pursuant to which AMD Fab 36 Holding is obtaining the exclusive right to purchase Wafers from AMD Fab 36 and AMD Fab 36 is
agreeing, on such exclusive basis, to manufacture and sell Wafers to AMD Fab 36 Holding, in each case on the terms and conditions of the AMD Fab 36 Cost Plus Reimbursement Agreement; 
  
 WHEREAS, on the terms and conditions of this Agreement, AMD Inc. wishes the exclusive right to purchase all such Wafers as are purchased by
AMD Fab 36 Holding from AMD Fab 36 on the terms and conditions of the AMD Fab 36 Cost Plus Reimbursement Agreement, and AMD Fab 36 Holding is willing, on such exclusive basis, to sell such Wafers to AMD Inc.; and 
  
 WHEREAS, on 31 October 2003, AMD Inc., AMD Fab 36 Holding GmbH, AMD Fab 36 and AMD Saxony
Limited Liability Company & Co. KG, Dresden (“AMD Saxony”) entered into a Management Service Agreement (“Fab 36 Management Service Agreement”) and AMD Inc., AMD Fab 36 Holding GmbH, and AMD Fab 36 entered into a
license agreement. 
  
 NOW, THEREFORE, in consideration of above, the parties
hereto agree as follows: 

 ARTICLE I 
  

Purchase of Products 
  
 Section 1.01. Sale of Products by AMD Fab 36 to AMD Inc.. 
  
 (a) On the terms and subject to the conditions of this Agreement, AMD Fab 36 Holding hereby agrees to sell to AMD Inc. 100%
of such Products as are manufactured by AMD Fab 36 and sold to AMD Fab 36 Holding on the terms and subject to the conditions of the AMD Fab 36 Cost Plus Reimbursement Agreement. Products within the meaning of this Agreement are all Wafers
manufactured by AMD Fab 36. AMD Fab 36 Holding further agrees that, during the term of this Agreement, unless AMD Inc. and, prior to the Loan Agreement Termination Date, the Facility Agent, otherwise consent thereto, it shall not, directly or
indirectly, (i) sell any Products or any other goods or services to any Person other than AMD Inc. or one or more of AMD Inc.’s Subsidiaries under any circumstances, or (ii) order products from AMD Fab 36 which have not been ordered by AMD Inc.
from AMD Fab 36 Holding hereunder, (iii) amend, supplement or otherwise modify the AMD Fab 36 Cost Plus Reimbursement Agreement, (iv) engage in any activities other than (a) the investment in equity of AMD Fab 36, (b) the making of loans and the
provision of other financial support to AMD Fab 36, (c) the purchase and sale of Products as contemplated hereby and (d) activities reasonably incidental to any of the foregoing. 
  
 (b) On the terms and subject to the conditions of this Agreement, AMD Inc. hereby agrees to purchase from AMD Fab 36 Holding
all Products manufactured by AMD Fab 36 and sold to AMD Fab 36 Holding in accordance with the terms of the AMD Fab 36 Cost Plus Reimbursement Agreement and to pay for such Products the purchase price determined pursuant to Article II. 
  
 (c) AMD Inc. shall from time to time provide, for and on behalf of AMD Fab 36
Holding, or shall arrange for one or more of its Subsidiaries to provide, in particular, but not only under the Management Service Agreement, to AMD Fab 36 technical assistance as required in Article III of the AMD Fab 36 Cost Plus Reimbursement
Agreement (including the disclosure stated therein and the permission to make copies and assign employees to Fab 30). Irrespective of any fault, AMD Inc. warrants by means of an independent promise of warranty pursuant to Section 311 para. 1 German
Civil Code that Wafers which meet the requirements can be manufactured in a timely manner with the provided technical assistance and the rights on intellectual property granted according to Section 3 b) of the License Agreement and the technical
documentation. The exclusive legal consequence of the warranty irrespective of fault is that AMD Inc. cannot invoke bad performance/non-performance by AMD Fab 36 Holding; such warranty has no other legal consequences. 
  
 Without limiting the generality of the foregoing, the Know-how to be provided
pursuant to this Section 1.01(c) and Article III of the AMD Fab 36 Cost Plus Reimbursement Agreement shall include such of the “Specific Results” (as such term is defined in the JDA), 
  

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 as are necessary or, in the reasonable opinion of AMD Inc., desirable, to enable AMD Fab 36 to manufacture Products on a
timely basis, in accordance with the Specifications for the relevant Product. Any disclosure of Know-how and Specifications pursuant to this Section 1.01(c) or Article III of the AMD Fab 36 Cost Plus Reimbursement Agreement (including, without
limitation, Know-how consisting of Specific Results and Know-how disclosed by way of the furnishing of technical assistance) to AMD Fab 36 by or on behalf of AMD Inc. or AMD Fab 36 Holding shall be subject to the License Agreement. 
  
 Section 1.02. Compliance with Laws and Required Permits.

  
 AMD Fab 36 Holding shall use commercially reasonable efforts to (i) comply
with all applicable Laws relating to the sale of the Products, and (ii) obtain all requisite consents, authorizations, permits and approvals for the sale to AMD Inc. of the Products from each governmental authority having jurisdiction over the sale
of the Products by AMD Fab 36 Holding to AMD Inc.; provided, however, that AMD Fab 36 Holding shall not be responsible for obtaining any consents, authorizations, permits or approvals in connection with the import of Products into any territory
outside Germany unless expressly otherwise agreed by AMD Fab 36; (iii) Irrespective of any fault, AMD Inc. warrants by means of an independent promise of warranty pursuant to Section 311 para. 1 German Civil Code that the distribution of the
Products is not conflicting with German law and U.S. law. The exclusive legal consequence of the warranty irrespective of fault is that AMD Inc. cannot invoke bad performance/non-performance by AMD Fab 36 Holding; such warranty has no other legal
consequences. 
  
 Section 1.03. Quality of Products;
Inspection and Rejection; Replacement Products. Without prejudice to AMD Inc.’s obligation to make payment for Products shipped pursuant to Section 2: 
  
 (a) AMD Holding shall use all reasonable efforts to ensure that each Product shipped meets the Specifications for that
Product. In order to assist AMD Fab 36 Holding in such efforts and for the purpose of assuring to AMD Inc. the quality of the Products required under this Agreement, AMD Fab 36 Holding shall permit AMD Inc. and its Subsidiaries, at any time during
normal working hours and on reasonable notice, to inspect any premises of AMD Fab 36 Holding, and shall use all reasonable efforts to permit such representatives, at such time and on such notice, to inspect any premises of any third party where any
of the Products, or any labeling or packaging for them, are manufactured by or for AMD Fab 36 Holding. Furthermore, AMD Fab 36 Holding shall cause AMD Fab 36 to make the efforts described in this Section 1.03.(a) and/or to issue permissions to AMD
Inc. for such inspections at AMD Fab 36 or third-party contractors of AMD Fab 36. 
  
 (b) AMD Inc. shall promptly notify AMD Fab 36 Holding in writing should the quality of the Products shipped vary materially from the typical quality of the four previous 
  

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 shipments or, in the case of the first four shipments, from the quality of the previous shipments. In such event, AMD Fab
36 Holding shall use its reasonable commercial efforts to restore the quality of the Products shipped hereunder to again meet such typical quality as soon as possible and will cause AMD Fab 36 to look after that. 
  
 ARTICLE II 
  
 Purchase Price and Delivery of Products 
  
 Section 2.01. Purchase and Payment Obligation.

  
 (a) From and after the Effective Date AMD Inc. shall purchase
all Products which it orders from AMD Fab 36 Holding and are shipped by AMD Fab 36 Holding in accordance with the requirements of this Agreement. The purchase price for the Products shall be equal the Selling Price Per Wafer as defined in Section
2.01 in conjunction with Section 2.02 of the AMD Fab 36 Cost Plus Reimbursement Agreement. 
  
 For all Products shipped during any Month, AMD Inc. shall make payments to AMD Fab 36 Holding based on the Selling Price Per Wafer. 
  
 In addition, AMD Inc. shall purchase from AMD Fab 36 Holding any and all damage claims acquired by AMD Fab 36 Holding pursuant to Section
2.06 a) of the AMD Fab 36 Cost Plus Reimbursement Agreement from AMD Fab 36. 
  
 (b) In aggregate, AMD Inc. agrees to make payments to AMD Fab 36 Holding which in terms of their amount and due date shall correspond to all payments due and to be made by AMD Fab 36 Holding to AMD Fab 36 under the
AMD Fab 36 Cost Plus Reimbursement Agreement. This applies, in particular, without limitation to 
  

	 	•	Advance Payments pursuant to Section 2.03 of the AMD Fab 36 Cost Plus Reimbursement Agreement, 

  

	 	•	payment of the Selling Price Per Wafer by AMD Fab 36 Holding pursuant to Section 2.02 of the AMD Fab 36 Cost Plus Reimbursement Agreement, 

  

	 	•	annual compensation for certain administrative costs, pursuant to Section 2.04 of the AMD Fab 36 Cost Plus Reimbursement Agreement, 

  

	 	•	costs for transportation and insurance pursuant to Section 2.05 of the AMD Fab 36 Cost Plus Reimbursement Agreement, and 

  

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	 	•	any damages payable by AMD Fab 36 Holding on the basis of Section 5.01 b) at the end of the AMD Fab 36 Cost Plus Reimbursement Agreement. 

  
 If and to the extent that payments are made by AMD Fab 36 Holding to AMD Fab 36 against
assignment of claims, such claims shall be assigned by AMD Fab 36 Holding to AMD Inc. at the time when AMD Inc. effects payment, and AMD Inc. hereby accepts such assignment. 
  
 Section 2.02. Shipping Terms. AMD Fab 36 Holding shall deliver the Products purchased hereunder from
Dresden, Germany. Pursuant to Section 2.05 of the AMD Fab 36 Cost Plus Reimbursement Agreement, AMD Fab 36 will arrange all freight, trucking and insurance. The costs for transportation and insurance will – as far as applicable - be separately
regulated by the parties on a case-by-case basis (in accordance with the regulation as agreed from time to time between AMD Fab 36 and AMD Fab 36 Holding). 
  
 Section 2.03. Payments; Set Off. 
  
 (a) AMD Inc. shall pay to AMD Fab 36 Holding the Selling Price Per Wafer for all Products shipped by AMD Fab 36 Holding prior to the purchase price due
date for such Products under the AMD Fab 36 Cost Plus Reimbursement Agreement (if AMD Fab 36 or AMD Fab 36 Holding notifies this reasonably in advance) within 30 days after receipt of invoices denominated in Euro from AMD Fab 36 Holding in
accordance with this Section 2.03. AMD Fab 36 Holding shall be entitled to issue invoices to AMD Inc. on a monthly basis. 
  
 (b) Payment for all other amounts due hereunder from either party (including any payments under Section 2.01 b)) shall be unconditionally due on or before
the date specified in the AMD Fab 36 Cost Plus Reimbursement Agreement for such amount. AMD Holding agrees that each and every confirmation, invoice or declaration from AMD Fab 36 to AMD Fab 36 Holding which under the AMD Fab 36 Cost Plus
Reimbursement Agreement must be delivered by AMD Fab 36 to AMD Holding prior to the relevant due date will be delivered to AMD Inc. without delay and in any event prior to the relevant due date. 
  
 (c) All amounts under this Agreement not paid when due from AMD Inc. shall
bear interest at the rate of 3% above the three-month EURIBOR per annum on a pro rata temporis basis. Such interest shall be due and payable at the end of each calendar month. 
  
 (d) Any amounts that are due from AMD Fab 36 Holding to AMD Inc. hereunder shall be payable only in the form of credit
against amounts owed or to be owed by AMD Inc. to AMD Fab 36 Holding under this Agreement, except to the extent provided in Section 3.02 in conjunction with the Fab 36 Management Service Agreement. Any amount that is due from AMD Inc. to AMD Fab 36
Holding hereunder may be set-off against any payment then due under Sections 3, 5.02, or the Fab 36 Management Service Agreement, from AMD Fab 36 Holding to AMD Inc. 
  

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 (e) AMD Fab 36 Holding has the right to assign to AMD Fab 36 its payment claims against AMD Inc. under
this Agreement to secure the payment claims of AMD Fab 36 against AMD Fab 36 Holding under the AMD Fab 36 Costs Plus Reimbursement Agreement (including damage claims in case that, in the event of bankruptcy of AMD Inc., the trustee in bankruptcy of
AMD Inc. or any other person with similar authority does not continue the Fab 36 Holding Cost Plus Reimbursement Agreement, regardless of whether such damage claims result under German or U.S. state or federal law). 
  
 Section 2.04. Method of Payment. Payments under this
Agreement from AMD Inc. to AMD Fab 36 Holding, if made other than by set-off permitted by Section 2.03, shall be deposited into an account of AMD Fab 36 Holding at Dresdner Bank AG, Dresden Branch or such other account of AMD Fab 36 Holding
specified by AMD Fab 36 Holding with the prior written consent of the Facility Agent (a copy of which consent shall be delivered by AMD Fab 36 Holding to AMD Inc.) with not less than 15 days written notice to AMD Fab 36 Holding, and all such
payments shall be made in Euro, or in US-Dollar, or a combination of Euro and US-Dollar, in each case at the option of AMD Fab 36 Holding. The relevant US-Dollar amount results from the conversion of Euro to US-Dollar at the Facility Agent’s
spot rate of exchange as in effect on the date of the relevant invoice. 
  
 Section 2.05. Product Warranty. Subject to Section 2.06, AMD Fab 36 Holding represents and warrants that all Products sold to AMD Inc. pursuant to this Agreement shall conform in all material respects to the
Specifications for such Products and, if expressly agreed by AMD Fab 36 Holding in writing in advance, to any specific changes thereto. 
  
 Section 2.06. Disclaimer. THE WARRANTY CONTAINED IN SECTION 2.05 IS THE SOLE AND EXCLUSIVE WARRANTY AS TO THE PRODUCTS AND IS
EXPRESSLY IN LIEU OF ANY EXPRESS OR IMPLIED WARRANTIES, IN FACT OR IN LAW, INCLUDING, WITHOUT LIMITATION, WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR ANY SIMILAR WARRANTIES IMPLIED BY APPLICABLE LAW. REPAIR OR REPLACEMENT OF
DEFECTIVE PRODUCTS SHALL BE AMD INC.’s EXCLUSIVE REMEDY WITH RESPECT TO DEFECTIVE PRODUCTS. AMD FAB 36 HOLDING ASSUMES NO LIABILITY IN TORT OR STRICT LIABILITY, NOR SHALL AMD FAB 36 HOLDING BE LIABLE TO AMD INC. OR ANY AFFILIATE THEREOF FOR
LOSS OR USE OF PRODUCTS OR ANY OTHER INCIDENTAL, SPECIAL OR CONSEQUENTIAL DAMAGES INCURRED BY AMD INC. OR ANY SUBSIDIARY OR AFFILIATE THEREOF. IN NO EVENT SHALL THE LIABILITY OF AMD FAB 36 HOLDING ARISING IN CONNECTION WITH ANY PRODUCTS SOLD
HERUNDER EXCEED THE PURCHASE PRICE FOR SUCH PRODUCTS. 
  

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 Section 2.07. Annual Compensation for Certain Administrative Costs. AMD Inc. shall
compensate AMD Fab 36 Holding for any costs not covered by Sections 2.01 and 2.02, including without limitation bookkeeping, legal and accounting costs, incurred by AMD Fab 36 Holding from time to time in connection with this Agreement and the AMD
Fab 36 Cost Plus Reimbursement Agreement plus a markup of 7.5% on such costs. Such payment shall be made not later than 30 days after the end of each Fiscal Year. 
  
 Section 2.08 Limitation of Claims. AMD Fab 36 Holding in AMD Inc. agree that AMD Inc. shall only be entitled
to raise claims against AMD Fab 36 Holding under this Agreement if and to the extent AMD Fab 36 Holding on its part can raise claims against AMD Fab 36 under the AMD Fab 36 Cost Plus Reimbursement Agreement. For the discharge of its obligations, AMD
Fab 36 Holding shall be entitled to assign its claims against AMD Fab 36 to AMD Inc. 
  
 ARTICLE III 
  
 Technical Assistance 
  
 Section
3.01. Provision of Know-how and Advice, Training and Technical Assistance, Access to Comparable Plants. AMD Inc. will provide technical assistance pursuant to Section 1.01c) hereof. Insofar as a declaration from AMD Fab 36 Holding
is a precondition for such obligations pursuant to Section 3 of the AMD Fab 36 Cost Plus Reimbursement Agreement, AMD Fab 36 Holding shall immediately after making such declaration inform AMD Inc. thereof. 
  
 Section 3.02. Charge for Technical Assistance.

  
 (a) The remuneration for services provided under this Section
3 or under Section 1.01.c) shall be paid by AMD Fab 36 directly to AMD Inc. in accordance with the Fab 36 Management Service Agreement. 
  
 (b) The foregoing notwithstanding, the parties agree that, without prejudice to the last sentence of Section 1.01(c) or to the License Agreement, any
Intellectual Property provided in any form to AMD Fab 36 (or AMD Fab 36 Holding for the benefit of AMD Fab 36) for its use hereunder is provided at no charge. 
  

ARTICLE IV  
  
 Accounting Reports: Other Reports: 
 Right of Inspection 
  
 Section 4.01.
Annual Accounting Reports from AMD Fab 36 Holding, Inspection Rights. AMD Inc. and its duly authorized representatives (which may include duly authorized representatives of a Subsidiary of AMD Inc.) and, if the Loan Agreement 

 

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 Termination Date has not yet taken place, the Facility Agent shall at all reasonable times have access to the books and
accounts kept by AMD Fab 36 Holding and annually upon the closing of the Fiscal Year (starting with the Fiscal Year 2004) all such books and accounts shall be audited by a firm of independent and internationally known public accountants selected by
AMD Fab 36 Holding with the approval of AMD Inc. and, if the Loan Agreement Termination Date has not yet taken place, the Facility Agent (the consent of the Facility Agent not to be unreasonably withheld). A copy of each such report of audit shall
be sent to AMD Inc. and, prior to the Loan Agreement Termination Date, the Facility Agent. AMD Inc. and its duly authorized representatives (which may include duly authorized representatives of a Subsidiary of AMD Inc.) shall also have the right to
examine and inspect at any reasonable time all properties and operations of AMD Fab 36 Holding to which this Agreement relates. 
  
 Section 4.02. Rights of Inspection at AMD Fab 36. AMD Fab 36 Holding shall make sure that (i) AMD Inc. and its representatives (which may
include a Subsidiary of AMD Inc.) and, prior to the Loan Agreement Termination Date, the Facility Agent shall at all reasonable times have access to the books and accounts kept by AMD Fab 36, (ii) all books and accounts kept by AMD Fab 36 will be
audited once per year on completion of the Fiscal Year by an independent and internationally recognized auditing firm to be appointed by AMD Fab 36 with the approval of AMD Fab 36 Holding and, prior to the Loan Agreement Termination Date, of the
Facility Agent (with the Facility Agent’s approval not to be withheld unreasonably), (iii) a copy of the auditing report be delivered to AMD Inc. without delay, and (iv) AMD Inc. and its representatives (which may include duly authorized
representatives of a Subsidiary of AMD Inc.) are authorized to inspect at all reasonable times all Plant facilities of AMD Fab 36 to which the AMD Fab 36 Cost Plus Reimbursement Agreement relates. 
  
 The rights of Leipziger Messe GmbH and of M+W Zander Fünfte
Verwaltungsgesellschaft mbH (“M+W”) as direct or indirect partners of AMD Fab 36 pursuant to Article 9.3 of the Limited Partnership Agreement of AMD Fab 36 remain unaffected. 
  
 ARTICLE V  
  
 Effectiveness; Termination 
  
 Section 5.01. Effectiveness: Termination. 
  

(a) This Agreement shall become effective on the date hereof and (unless otherwise extended) shall terminate on the date which is the earlier of (i)
the effective date of the ordinary notice of termination given by any of the Parties with three months’ notice, such effective date being the end of any calendar month, however, not before the Loan Agreement Termination Date and (ii) the
termination pursuant to subsection (b) sentence 1 below. No notice of ordinary termination may be given by AMD Inc. as long as Leipziger Messe GmbH and/or M+W are direct or indirect partners of AMD Fab 36, unless Leipziger Messe GmbH and/or M+W
consent to such termination. 
  

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 (b) This Agreement terminates upon termination of the AMD Fab 36 Cost Plus Reimbursement Agreement. The
right to assert statutory damage claims (Section 314 (4) BGB [German Civil Code] in conjunction with Sections 280 et seq. BGB) on the ground of termination of this Agreement for the reasons set out in Section 5.01 (b) of the AMD Fab 36 Cost Plus
Reimbursement Agreement and termination of this Agreement resulting therefrom remains unaffected. 
  
 Section 5.02. Rights Upon Termination. 
  
 (a) Promptly, but in no event later than 20 days following the Termination Date, 
  
 (i) the actual Selling Price for the Month ending on the Termination Date shall be calculated in accordance with Section
2.02 of the AMD Fab 36 Cost Plus Reimbursement Agreement; and 
  
 (ii) if no Products were shipped in the Month ending on the Termination Date, the final Advance Payment Adjustment Amount for that Month shall be calculated in accordance with Section 2.03 of the AMD Fab 36 Cost Plus Reimbursement
Agreement. 
  
 (b) Upon termination of this Agreement, AMD Inc.
shall purchase, as of the Termination Date, (i) all inventory and work-in-process of AMD Fab 36 Holding and (ii) all inventory and work-in-process which AMD Fab 36 Holding is obliged to purchase under Section 5.02 (b) of the AMD Fab 36 Cost Plus
Reimbursement Agreement. The purchase price shall be, in the case of lit. (i) above, equal to the value thereof as shown in the books of AMD Fab 36 Holding in accordance with German GAAP and, in the case of lit. (ii) above, equal to the purchase
price to be paid by AMD Fab 36 Holding under Section 5.02 b) of the AMD Fab 36 Cost Plus Reimbursement Agreement. 
  
 (c) Upon termination of this Agreement, all amounts shall be offset between the parties and the balance shall be settled by payment. 
  
 Section 5.03. Survival. The provisions of Sections 2.05
and 2.6, 5.02, 6.02, 6.03 and 6.06 shall survive any termination of this Agreement. 
  

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 ARTICLE VI  
  
 Miscellaneous 
  
 Section 6.01. Force Majeure. 
  
 (a) A party to this Agreement shall not be liable for the consequences of any failure to perform, or default in performing, any of its obligations, other
than its payment obligations, under this Agreement if that party can show that such failure is caused by Force Majeure. In the event that no Wafers can be manufactured due to Force Majeure, the payment obligations hereunder shall continue to be
owed. 
  
 (b) In case of subsection (a), the said failure shall
not be considered non-compliance with any term or condition of this Agreement, and all the obligations (other than payment obligations) and times which because of such Force Majeure could not be fulfilled shall be deemed to have been suspended while
the Force Majeure continues. In addition, the party for whom such obligations and/or times have been suspended shall be entitled to take reasonable steps during the pendency of the relevant Force Majeure to limit its losses resulting from such Force
Majeure, and following the occurrence of such Force Majeure such obligations and/or times shall continue to be suspended for such further reasonable period as is necessary for such party to restore its capacity to perform such obligations and/or
meet such times. 
  
 Section 6.02. Applicable
Law. This Agreement is governed by the law of the Federal Republic of Germany. Application of the UN Convention on Contracts for the International Sale of Goods of 11 April 1980 is expressly excluded. 
  
 Section 6.03. Dispute Resolution. 
  
 a) The parties shall endeavor to reach an amicable settlement of any dispute
arising out of or in connection with this Agreement and its implementation, including any question regarding its existence, validity, termination or its performance, or in connection with arrangements regarding the performance of this Agreement.

  
 b) If any party declares that a reasonable attempt at amicable
settlement of a dispute mentioned in sub-section a) has failed, such dispute shall be finally resolved by arbitration, to the exclusion of the courts of regular jurisdiction, under the Rules of Arbitration (Schiedsgerichtsordnung) of the
German Arbitration Board (“Deutsche Institution für Schiedsgerichtswesen e.V.”) , by three arbitrators. The place of arbitration shall be Dresden, Germany. The German Code of Civil Procedure shall apply where the Rules of Arbitration
are silent. 
  
 c) The language to be used in the arbitration
proceedings shall be German and all documents written in a language other than German shall be translated into the German language for the arbitration proceedings, unless otherwise decided by the parties to the arbitration proceedings. 

 

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 d) The arbitral awards shall be substantiated in writing. The arbitration tribunal shall decide on the
matter of costs of the arbitration and on the allocation of expenditure among the respective parties to the arbitration proceedings. 
  
 Section 6.04. Definitions. 
  
 It is the will of the parties hereto that each of the terms used herein and listed in the Annex 1 to the AMD Fab 36 Cost Plus Reimbursement Agreement has the meaning
specified there unless the context requires a different interpretation. 
  
 Section 6.05. Assignment. 
  
 None of the parties
hereto shall have the right to assign its rights hereunder without the prior written consent of the other party hereto, of Leipziger Messe GmbH and of M+W as long as they are limited partners of AMD Fab 36 and, prior to the Loan Agreement
Termination Date, of the Security Agent. However, AMD Fab 36 Holding may assign its rights under this Agreement to the Security Agent and/or the Banks as security for obligations of AMD Fab 36 under the Loan Agreement, and the Security Agent may in
turn assign such rights to any direct transferee of the Plant in the context of the proper realization of such security. 
  
 Section 6.06. Language.  
  
 The German version of this Agreement shall be controlling. 
  
 Section 6.07 Final Provisions.  
  
 a) Modifications or amendments to this Agreement shall be valid only if in writing and only with the written consent of all
partners of AMD Fab 36 as far as rights or the economic position of Leipziger Messe GmbH and M+W as limited partners of AMD Fab 36 are not insignificantly adversely affected thereby, directly or indirectly, as long as Leipziger Messe GmbH or M+W are
limited partners of AMD Fab 36. The partners shall be obliged to consent to amendments or modifications of this Agreement which only reflect amendments or modifications of the AMD Fab 36 Cost Plus Reimbursement Agreement. This requirement of written
form may only be waived in writing. 
  
 b) If present or future
terms of this Agreement are invalid or unenforceable in whole or in part or lose their validity or enforceability at a later date, this shall not affect the validity of the remaining provisions hereof. The same shall apply insofar as it 

 

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 transpires that there is a gap in this agreement. The invalid or unenforceable provision shall be replaced, or the gap
filled, by a reasonable provision which, to the extent legally permissible, comes closest to what the contracting parties intended or would have intended in accordance with the meaning and purpose of this Agreement, had they considered the point
upon conclusion hereof. This also applies if the invalidity of a provision results from a degree of performance standardized hereunder (set period, date); in such cases a legally permissible degree of performance or time (set period, date), coming
as close as possible to the intentions, shall replace what was agreed. 
  
 In case
of disputes arising among the parties hereto due to subsections a) and b) above, the arbitration tribunal (Section 6.03) shall be entitled to determine with binding force the provision which is to apply thereunder. 
  

			
	 Dresden, April 21, 2004
	 	 Dresden, 21. April 2004

		
	 /s/ Robert J. Rivet

	 	 /s/ Dr. Hans-Raimund Deppe

	 Advanced Micro Devices, Inc.
	 	 AMD Fab 36 Holding GmbH

	 Robert J. Rivet
	 	 Dr. Hans-Raimund Deppe

	 Chief Financial Officer
	 	 Managing Director

  

 13AMD Fab 36 Cost Plus Reimbursement Agreement dated April 21, 2004

 Exhibit 10.70 
  
 Execution Copy 
 (Convenience Translation) 
  
 AMD FAB 36 COST PLUS
REIMBURSEMENT AGREEMENT 
  
 between 
  
 AMD FAB 36 HOLDING GMBH 
 Wilschdorfer Landstr. 101, 01109 Dresden 
  
 - hereinafter referred to as “AMD Fab 36 Holding” - 
  
 and 
  
 AMD FAB 36 LIMITED LIABILITY COMPANY & CO. KG 
 Wilschdorfer Landstr. 101, 01109 Dresden 
  
 - hereinafter referred to as “AMD Fab 36” - 

 RECITALS 
  
 WHEREAS, AMD Fab 36 is a majority-owned Subsidiary of AMD Fab 36 Holding, which in turn is a wholly-owned Subsidiary of Advanced Micro Devices, Inc., a corporation
organized and existing under the laws of the State of Delaware, United States of America (“AMD Inc.”); 
  
 WHEREAS, AMD Inc., AMD Fab 36 Holding and AMD Fab 36 are currently involved in the planning and implementation stages of a project pursuant to which AMD Fab 36 will use
and develop to the production stage semiconductor manufacturing technology and produce 300 mm Wafers, in particular, for microprocessors, in a newly to be constructed wafer plant in Dresden; 
  
 WHEREAS, concurrently with conclusion of this Agreement (this “Agreement”),
AMD Inc. and AMD Fab 36 Holding are entering into the AMD Fab 36 Holding Cost Plus Reimbursement Agreement which is attached as Annex A and pursuant to which, among other things, AMD Inc. will agree to purchase all Wafers purchased by AMD Fab 36
Holding from AMD Fab 36, and AMD Fab 36 Holding will agree to supply on an exclusive basis to AMD Inc., such Wafers, in each case on the terms and conditions of the AMD Fab 36 Holding Cost Plus Reimbursement Agreement; 
  
 WHEREAS, on the terms and conditions of this Agreement, AMD Fab 36 Holding wishes the
exclusive right to purchase Wafers from AMD Fab 36 in order to enable AMD Fab 36 Holding to fulfill its obligations under the AMD Fab 36 Holding Cost Plus Reimbursement Agreement, and AMD Fab 36 is willing, on such exclusive basis, to manufacture
and sell Wafers to AMD Fab 36 Holding, all on the terms and conditions of this Agreement; and 
  
 WHEREAS, AMD Inc., AMD Fab 36 Holding GmbH, AMD Fab 36 and AMD Saxony Limited Liability Company & Co. KG, Dresden (“AMD Saxony”) entered into a Management Service Agreement dated October 31, 2003
(“Fab 36 Management Service Agreement”) and AMD Inc., AMD Fab 36 Holding GmbH, and AMD Fab 36 entered into a license agreement. 
  
 NOW, THEREFORE, in consideration of above, the parties hereto agree as follows: 
  

 I-1 

 ARTICLE I Manufacture of Products 
  
 Section 1.01. Manufacture by AMD Fab 36 of Products for Sale to AMD Fab 36 Holding. 
  
 (a) On the terms and subject to the conditions of this Agreement, AMD Fab 36
hereby agrees to manufacture and sell Products to AMD Fab 36 Holding. Products within the meaning of this Agreement are all Wafers manufactured by AMD Fab 36. AMD Fab 36 further agrees that, during the term of this Agreement, unless AMD Inc.,
the limited partners of AMD Fab 36 and, prior to the Loan Agreement Termination Date, the Facility Agent, otherwise consent thereto, it shall not, directly or indirectly, (i) sell any Products or any other goods or services to any Person other than
AMD Fab 36 Holding, AMD Inc. or one or more of AMD Inc.’s Subsidiaries under any circumstances, or (ii) engage in any activities other than (w) construction of the Plant, (x) manufacture and sale of Products to be Shipped pursuant to this
Agreement, (y) research, development and further development of the underlying technologies to the industrial production stage, and (z) activities reasonably incidental to any of the foregoing. 
  
 In the event that a further industrial manufacturing partner is admitted to AMD Fab 36, the
exclusivity shall terminate with respect to manufacturing capacity of the Plant in excess of capacity dedicated to production of Wafers pursuant to this Agreement and the Parties shall agree to modify this Agreement accordingly. 
  
 (b) On the terms and subject to the conditions of this Agreement, AMD Fab 36
Holding hereby agrees to purchase from AMD Fab 36 all Products and to pay for all the Products Shipped to it the purchase price determined on a “cost-plus” basis pursuant to Article II. 
  
 (c) AMD Fab 36 Holding shall from time to time provide, or shall arrange for
AMD Inc. or one or more of its Subsidiaries to provide, in particular, but not only under the Management Service Agreement, to AMD Fab 36 technical assistance as required in Article III (including the disclosure stated therein). Irrespective of any
fault, AMD Fab 36 Holding warrants by means of an independent promise of warranty pursuant to Section 311 para. 1 German Civil Code that Wafers which meet the requirements can be manufactured in a timely manner with the provided technical assistance
and the rights on intellectual property granted according to Section 3 b) of the License Agreement and the technical documentation. The exclusive legal consequence of the warranty irrespective of fault is that AMD Fab 36 Holding cannot invoke bad
performance/non-performance by AMD Fab 36; such warranty has no other legal consequences. 
  
 Without limiting the generality of the foregoing, the Know-how to be provided pursuant to this Section 1.01(c) and Article III shall include such of the “Specific Results” (as such term is defined in the
JDA), as are necessary or, in the reasonable opinion of AMD Inc., desirable, to enable AMD Fab 36 to manufacture Products on a timely basis, in accordance with the Specifications for the relevant Product. Any disclosure of Know-how and
Specifications pursuant to this Section 1.01(c) or Article III (including, without limitation, Know-how consisting of Specific Results and Know-how disclosed by way of the furnishing of technical assistance) to AMD Fab 36 by or on behalf of AMD Fab
36 Holding shall be subject to the License Agreement. 
  

 I-2 

 Section 1.02. Compliance with Laws and Required Permits. 
  
 (a) AMD Fab 36 shall, at its cost and expense, use commercially reasonable
efforts to (i) comply with all applicable Laws relating to the manufacture and the sale of the Products, and (ii) obtain all requisite consents, authorizations, permits and approvals for the manufacturing and sale to AMD Fab 36 Holding and the sale
by AMD Fab 36 Holding to AMD Inc. of the Products from each governmental authority having jurisdiction over the manufacture and sale of the Products by AMD Fab 36 and AMD Fab 36 Holding; provided, however, that AMD Fab 36 shall not be responsible
for obtaining any consents, authorizations, permits or approvals in connection with the import of Products into any territory outside Germany unless expressly otherwise agreed by AMD Fab 36; (iii) Irrespective of any fault, AMD Fab 36 Holding
warrants by means of an independent promise of warranty pursuant to Section 311 para. 1 German Civil Code that neither the manufacture nor the distribution of the Products is conflicting with German law. The exclusive legal consequence of the
warranty irrespective of fault is that AMD Fab 36 Holding cannot invoke bad performance/non-performance by AMD Fab 36; such warranty has no other legal consequences. 
  
 Section 1.03. Quality of Products; Inspection and Rejection; Replacement Products. Without prejudice to AMD
Fab 36 Holding’s obligation to make payment for Products Shipped pursuant to Section 2.06 and Section 2.07: 
  
 (a) AMD Fab 36 shall use all reasonable efforts to ensure that each Product Shipped meets the Specifications for that Product. In order to assist AMD Fab
36 in such efforts and for the purpose of assuring to AMD Fab 36 Holding the quality of the Products required under this Agreement, AMD Fab 36 shall permit the duly authorized representatives of AMD Fab 36 Holding and/or of AMD Inc. and its
Subsidiaries, at any time during normal working hours and on reasonable notice, to inspect any premises of AMD Fab 36, and shall use all reasonable efforts to permit such representatives, at such time and on such notice, to inspect any premises of
any third party where any of the Products, or any labeling or packaging for them, are manufactured by or for AMD Fab 36. 
  
 (b) AMD Fab 36 Holding shall promptly notify AMD Fab 36 in writing should the quality of the Products Shipped vary materially from the typical quality of
the four previous shipments or, in the case of the first four shipments, from the quality of the previous shipments. In such event, AMD Fab 36 shall use its reasonable commercial efforts to restore the quality of the Products delivered hereunder to
again meet such typical quality as soon as possible. 
  

 I-3 

 ARTICLE II  
  
 Purchase Price and Delivery of Products 
  
 Section 2.01. Descriptive Overview of Product Pricing. Without derogating from Sections 2.02 through 2.07
hereunder: 
  
 From and after the Effective Date AMD Fab 36 Holding shall
purchase all Products which it orders from AMD Fab 36 and are Shipped by AMD Fab 36 in accordance with the requirements of this Agreement. The purchase price for the Products will be set at a price per Wafer which will be determined on a
“cost-plus” basis for any month in accordance with the Section 2 hereinafter (“Selling Price Per Wafer”). 
  
 For all Products Shipped during any Month, AMD Fab 36 Holding shall make payments to AMD Fab 36 based on the Selling Price Per Wafer. Within 25 days after the end of each
Month, other than one in which no Products are Shipped, AMD Fab 36 shall determine the Selling Price Per Wafer for such Month on the basis of its Total Costs actually incurred during that Month and the Applicable Percentage in accordance with
Section 2.02. The parties acknowledge that this pricing mechanism may have the result of dictating a high price per Wafer for any Month in which only relatively few Wafers are Shipped and that after the Effective Date it will result in a full cost
reimbursement during each year. 
  
 Section 2.02. Definition
of Selling Price Per Wafer. 
  
 (a) Promptly, but in any
event not later than 25 days after the end of each Month, the Selling Price Per Wafer for that Month shall be calculated in accordance with the formula contained in Section 2.02(b). Such calculation shall be based on the Total Costs actually
incurred during such Month and the Actual Volume for such Month. 
  
 (b) For any Month the Selling Price Per Wafer shall be calculated in accordance with the following formula:- 
  
 

 
 where: 
  
 “Applicable 
 Percentage” shall be 110%; 
  
 “AV” means the Actual Volume for that Month; 
  
 “TC” means AMD Fab 36’s Total Costs (as defined in Annex 1) for or in respect of that Month. 
  

 I-4 

 Section 2.03. Advance Payment Adjustment to Reimburse Total Costs in Certain Months during
which no Wafers are Shipped. For any Month after the Effective Date during which no Products are Shipped, promptly after the end but in any event not later than 30 days after such Month, AMD Fab 36 Holding shall make a creditable but not
repayable advance payment in the amount of AMD Fab 36’s Total Costs multiplied by the Applicable Percentage (the “Advance Payment Adjustment Amount”) regardless of further Wafer Shipments. 
  
 If Wafers are again Shipped in any Month thereafter, the Total Costs of AMD
Fab 36 shall be increased for that Month by the Total Costs of all preceding Months during which no Wafers were Shipped; the Advance Payment Adjustment Amounts shall be set-off against the payment to be made for such Month (confer definition of
Total Costs in Annex 1, lit (g)). 
  
 Section 2.04.
Annual Compensation for Certain Administrative Costs. AMD Fab 36 Holding shall compensate AMD Fab 36 for any administrative costs, including without limitation bookkeeping, legal and accounting costs, incurred by AMD Fab 36 from time
to time for the direct benefit of AMD Fab 36 Holding, as follows. The parties agree that the amount payable by AMD Fab 36 Holding to AMD Fab 36 under this Section 2.04 shall be Euro 25,000 per annum for each Fiscal Year (which amount shall be
pro-rated for any portion of a Fiscal Year) from the date hereof. Such payment shall be made not later than 30 days after the end of each Fiscal Year. 
  
 Section 2.05. Shipping Terms. AMD Fab 36 shall deliver the Products purchased hereunder from Dresden, Germany. AMD Fab 36 will
arrange all freight, trucking and insurance. The costs for transportation and insurance will – as far as applicable - be separately regulated by the parties on a case-by-case basis. 
  
 Section 2.06. Payments; Set Off. 
  
 (a) AMD Fab 36 Holding shall pay to AMD Fab 36 the Selling Price Per Wafer for all Products Shipped by AMD Fab 36 within 30
days after receipt of invoices denominated in Euro from AMD Fab 36 in accordance with this Section 2.06. AMD Fab 36 shall be entitled to issue invoices to AMD Fab 36 Holding on a monthly basis. Payment for all other amounts due hereunder from either
party (including any adjustment amount) shall be unconditionally due on or before the date specified in this Agreement for such amount. 
  
 (b) All amounts under this Agreement not paid when due from AMD Fab 36 Holding shall bear interest at the rate of 3% above the three-month EURIBOR per
annum on a pro rata temporis basis. Such interest shall be due and payable at the end of each calendar month. 
  
 (c) Any amounts that are due from AMD Fab 36 to AMD Fab 36 Holding hereunder shall be payable only in the form of credit against amounts owed or to be
owed by AMD Fab 36 
  

 I-5 

 Holding to AMD Fab 36 under this Agreement, except to the extent provided in Section 3.04 in connection with the Fab 36
Management Service Agreement. Any amount that is due from AMD Fab 36 Holding to AMD Fab 36 hereunder may be set-off against any payment then due under Sections 3, 5.02, or the Fab 36 Management Service Agreement, from AMD Fab 36 to AMD Fab 36
Holding. 
  
 (d) To secure the payment claims of AMD Fab 36, AMD
Fab 36 Holding, here and now, assigns to AMD Fab 36 its payment claims against AMD Inc. under the Fab 36 Holding Cost Plus Reimbursement Agreement attached hereto as Annex A (including damage claims in case that, in the event of bankruptcy of AMD
Inc., the trustee in bankruptcy of AMD Inc. or any other person with similar authority does not continue the Fab 36 Holding Cost Plus Reimbursement Agreement, regardless of whether such damage claims result under German or U.S. state or federal
law). 
  
 Section 2.06 a). Assignment of Damage
Claims. 
  
 (a) AMD Fab 36 Holding undertakes to purchase
damage claims asserted by AMD Fab 36, which reduced the Total Costs pursuant to Section (6) (b) of Annex 1, if and to the extent that neither the damaging party nor an insurer makes any payment on account of such claims by the end of the second
month after the month in which the Total Costs have been reduced. This purchase obligation does not apply in case of damage claims of less than 100,000.00 EUR. 
  

(b) The purchase price of the damage claim shall correspond to the claim asserted against the third party and shall be included by AMD Fab 36 in the
next invoice after arising of the purchase obligation. 
  
 (c) The
assignment shall take effect at the time of sale; however, AMD Fab 36 is hereby granted authority of collection subject to any other regulation in the individual case. In the event that the assignment of the damage claim is excluded, AMD Fab 36
shall assert the claim in its own name and for the account of AMD Fab 36 Holding. It shall comply with the instructions given by AMD Fab 36 Holding in this connection. 
  
 Section 2.07. Method of Payment. Payments under this Agreement from AMD Fab 36 Holding to AMD Fab 36,
if made other than by set-off permitted by Section 2.06, shall be deposited into an account of AMD Fab 36 at Dresdner Bank AG, Dresden Branch or such other account of AMD Fab 36 specified by AMD Fab 36 with the prior written consent of the Facility
Agent (a copy of which consent shall be delivered by AMD Fab 36 to AMD Fab 36 Holding) with not less than 15 days written notice to AMD Fab 36 Holding, and all such payments shall be made in Euro, or in US-Dollar, or a combination of Euro and
US-Dollar, in each case at the option of AMD Fab 36. The relevant US-Dollar amount results from the conversion of Euro to US-Dollar at the Facility Agent’s spot rate of exchange as in effect on the date of the relevant invoice. 
  
 Section 2.08. Adjustments for Changes in Laws or German
GAAP. In the event that there is a change in applicable Law or in German GAAP, and such change results in (i) payments 
  

 I-6 

 due from AMD Fab 36 Holding to AMD Fab 36, or due from AMD Fab 36 to AMD Fab 36 Holding (as the case may be) being
materially different in aggregate amount or (ii) the timing of the receipt of such payments being materially different from the payments contemplated by this Article II, the affected party shall promptly notify the other party, AMD Inc. and the
Facility Agent, and AMD Fab 36 Holding and AMD Fab 36 shall negotiate in good faith with a view to agreeing to such reasonable amendments to this Article II and the definitions used therein (which amendments shall be made only with the prior written
consent of the Facility Agent) as are necessary as a result of such change. In order to restore the position contemplated by this Article II in the event AMD Fab 36 Holding and AMD Fab 36 fail to reach agreement on such amendments within 30 days of
becoming aware of such change, or if the Facility Agent reasonably withholds its consent to any proposed amendments, all payments under this Article II shall be calculated without giving effect to such change. For avoidance of doubt, any amendments
of the applicable law or of the German GAAP must not lead to a reduction of the cost basis of Total Costs. 
  
 Section 2.09. Product Warranty. Subject to Section 2.10, AMD Fab 36 represents and warrants that all Products sold to AMD Fab 36
Holding pursuant to this Agreement shall conform in all material respects to the Specifications for such Products and, if expressly agreed by AMD Fab 36 in writing in advance, to any specific changes thereto. 
  
 Section 2.10. Disclaimer. THE WARRANTY CONTAINED IN
SECTION 2.09 IS THE SOLE AND EXCLUSIVE WARRANTY AS TO THE PRODUCTS AND IS EXPRESSLY IN LIEU OF ANY EXPRESS OR IMPLIED WARRANTIES, IN FACT OR IN LAW, INCLUDING, WITHOUT LIMITATION, WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR
ANY SIMILAR WARRANTIES IMPLIED BY APPLICABLE LAW. REPAIR OR REPLACEMENT OF DEFECTIVE PRODUCTS SHALL BE AMD FAB 36 HOLDING’S EXCLUSIVE REMEDY WITH RESPECT TO DEFECTIVE PRODUCTS. AMD FAB 36 ASSUMES NO LIABILITY IN TORT OR STRICT LIABILITY, NOR
SHALL AMD FAB 36 BE LIABLE TO AMD FAB 36 HOLDING OR ANY AFFILIATE THEREOF FOR LOSS OR USE OF PRODUCTS OR ANY OTHER INCIDENTAL, SPECIAL OR CONSEQUENTIAL DAMAGES INCURRED BY AMD FAB 36 HOLDING OR ANY SUBSIDIARY OR AFFILIATE THEREOF. IN NO EVENT SHALL
THE LIABILITY OF AMD FAB 36 ARISING IN CONNECTION WITH ANY PRODUCTS SOLD HERUNDER EXCEED THE PURCHASE PRICE FOR SUCH PRODUCTS. 
  
 ARTICLE III  
  
 Technical Assistance 
  
 Section 3.01. Provision of Know-how and Advice by or on Behalf of AMD Fab 36 Holding to AMD Fab 36. 
  
 (a) AMD Fab 36 Holding shall from time to time disclose, or shall arrange for
AMD Inc. or one or more Subsidiaries of AMD Inc. to disclose, to AMD Fab 36 such of the Know-how and Specifications of AMD Inc. and its Subsidiaries (or which may be used by AMD Inc. or its Subsidiaries), and any Improvements to such Know-how and
Specifications made by AMD 
  

 I-7 

 Inc. or one or more of its Subsidiaries after such disclosure, as is necessary or, in the judgment of AMD Inc. or the
Subsidiary of AMD Inc. making such disclosure, reasonably desirable to enable AMD Fab 36 to manufacture Products on an efficient and timely basis in accordance with the Specifications for the relevant Product (such Know-how, Specifications and
Improvements together being the “Intellectual Property”). AMD Fab 36 Holding shall from time to time provide, or shall arrange for AMD Inc. to provide, one (1) copy (or if requested by AMD Fab 36, two (2) copies), on a non-exclusive
basis, of any Technical Documentation for such Intellectual Property in the possession of AMD Inc. or one or more of its Subsidiaries. Nothing in this Article III shall require AMD Inc. or any Subsidiary of AMD Inc. disclosing Intellectual Property
to create Technical Documentation unless required for the manufacture of Wafer hereunder. 
  
 (b) AMD Fab 36 Holding agrees to advise, or to arrange for AMD Inc. or one or more Subsidiaries of AMD Inc., to advise AMD Fab 36, upon AMD Fab 36’s
request in writing, in relation to (i) the configuration of the equipment installed or to be installed at the Plant and used for the production of each Product, and (ii) the requirements for such configuration, the installation of the equipment and
the machinery in the Plant necessary for the manufacture of such Products and the calibration and testing of such equipment and machinery. 
  
 (c) AMD Fab 36 Holding shall from time to time permit, or shall arrange for AMD Inc. to permit, AMD Fab 36 to make such number of copies of the Technical
Documentation, or any part thereof, provided or disclosed to it hereunder as AMD Fab 36 may require for the purposes of this Agreement. 
  
 (d) AMD Fab 36 Holding shall from time to time notify, or shall arrange for AMD Inc. to notify, AMD Fab 36 promptly of any material errors in the
Intellectual Property or Technical Documentation provided or disclosed to AMD Fab 36 hereunder or in connection herewith upon AMD Inc. or one or more of its other Subsidiaries becoming aware thereof and, to the extent AMD Inc. or one or more of its
Subsidiaries develops or obtains a correction for such error, shall promptly provide, or shall arrange for AMD Inc. to promptly provide, to AMD Fab 36 the Intellectual Property and/or Technical Documentation to enable AMD Fab 36 to correct such
error. 
  
 (e) Without derogating from AMD Fab 36 Holding’s
obligation to provide, or to arrange for AMD Inc. to provide, disclosure to AMD Fab 36 of such of the Know-how and Specifications of AMD Inc. and its Subsidiaries, or which AMD Inc. or its Subsidiaries have the right to use, as is necessary to
enable AMD Fab 36 to manufacture Products hereunder, but notwithstanding any other provision of this Section 3.01, AMD Fab 36 Holding shall not be required to disclose or arrange for AMD Inc. to disclose any Intellectual Property or Technical
Documentation which AMD Inc. and its Subsidiaries – despite their best efforts - do not have a right to disclose or the disclosure of which would require the payment of compensation to a third party. Own acquisition by AMD Fab 36 is not
precluded thereby. 
  

 I-8 

 Section 3.02. Expert Support, Training and Technical Assistance. 
  
 (a) AMD Fab 36 Holding shall, upon AMD Fab 36’s request in writing,
provide, or arrange for AMD Inc. or one or more Subsidiaries of AMD Inc. to provide, to AMD Fab 36, at the Plant, technical discussions, lectures, guidance and/or technical training in order to enable AMD Fab 36 to use, for the purposes of this
Agreement, the Intellectual Property and Technical Documentation disclosed or to be disclosed to AMD Fab 36 hereunder or in connection herewith and under or in connection with the License Agreement. Such discussions, lectures, guidance and training
shall be conducted by AMD Fab 36 Holding and/or AMD Inc. personnel who are qualified to provide advice with respect to the relevant Intellectual Property and Technical Documentation (“Qualified Personnel”). 
  
 (b) The timing of visits of such AMD Fab 36 Holding and/or AMD Inc. personnel
shall be arranged by agreement between AMD Fab 36 Holding and AMD Fab 36. 
  
 (c) AMD Fab 36 Holding shall, upon AMD Fab 36’s request in writing, provide, or arrange for AMD Inc. to provide, to AMD Fab 36, at the Plant, all technical assistance necessary to remedy a Production Problem.

  
 Section 3.03. Access to Comparable Plants.
AMD Fab 36 Holding shall arrange for AMD Inc. to permit or to cause AMD Saxony to permit AMD Fab 36 to send, at the expense of AMD Fab 36 or as otherwise agreed by AMD Inc., employees of AMD Fab 36 to visit AMD Saxony’s Wafer Fabrication
Plant in Dresden, Germany known as (“Fab 30”) for so long as such plant is owned by AMD Saxony or another Subsidiary of AMD Inc. and AMD Inc. holds a direct or indirect controlling interest in AMD Saxony, at reasonable times for the
purpose of witnessing and training in the use of any of the Intellectual Property and Technical Documentation provided or disclosed to it hereunder. AMD Fab 36 Holding shall upon AMD Fab 36’s request in writing, provide, or arrange for AMD Inc.
to provide, to such AMD Fab 36 employees at such Wafer Fabrication Plants technical discussions, lectures, guidance and/or technical training by Qualified Personnel in order to enable such AMD Fab 36 employees to understand the usage being made at
such Wafer Fabrication Plants of the relevant Intellectual Property and Technical Documentation. 
  
 Section 3.04. Charge for Technical Assistance. 
  
 (a) The remuneration for services provided under this Section 3 shall be paid by AMD Fab 36 directly to AMD Inc. (real
contract in favor of a third party) in accordance with the Fab 36 Management Service Agreement. 
  
 (b) The foregoing notwithstanding, the parties agree that, without prejudice to the last sentence of Section 1.01(c) or to the License Agreement, any
Intellectual Property provided in any form to AMD Fab 36 for its use hereunder is provided at no charge. 
  

 I-9 

 ARTICLE IV  
  
 Accounting Reports: Other Reports: 
 Right of Inspection By or On Behalf of AMD Fab 36 Holding 
  
 Annual Accounting Reports from AMD Fab 36. AMD Fab 36 Holding and its duly authorized representatives (which may include duly authorized representatives of AMD Inc. or a Subsidiary of AMD Inc.) and, if
the Loan Agreement Termination Date has not yet taken place, the Facility Agent shall at all reasonable times have access to the books and accounts kept by AMD Fab 36 and annually upon the closing of the Fiscal Year all such books and accounts shall
be audited by a firm of independent and internationally known public accountants selected by AMD Fab 36 with the approval of AMD Fab 36 Holding and, if the Loan Agreement Termination Date has not yet taken place, the Facility Agent (the consent of
the Facility Agent not to be unreasonably withheld). A copy of each such report of audit shall be sent to AMD Fab 36 Holding and, prior to the Loan Agreement Termination Date, the Facility Agent. AMD Fab 36 Holding and its duly authorized
representatives (which may include duly authorized representatives of AMD Inc. or of a Subsidiary of AMD Inc.) shall also have the right to examine and inspect at any reasonable time all properties and operations of AMD Fab 36 to which this
Agreement relates. The rights of Leipziger Messe GmbH and of M+W Zander Fünfte Verwaltungsgesellschaft mbH (“M+W”) as direct or indirect partners of AMD Fab 36 pursuant to Article 9.3 of the AMD Fab 36 Limited Partnership
Agreement remain unaffected thereby. 
  
 ARTICLE V 

  
 Effectiveness; Termination 

 
 Section 5.01. Effectiveness: Termination. 

 
 (a) This Agreement shall become effective on the date hereof and (unless
otherwise extended as hereinafter provided) shall terminate on the date which is the earlier of (i) the effective date of the ordinary notice of termination given by any of the Parties with three months’ notice, such effective date being the
end of any calendar month, however, not before the Loan Agreement Termination Date and (ii) the Termination Date as defined in subsection (b) below. No notice of ordinary termination may be given by AMD Fab 36 Holding as long as Leipziger Messe GmbH
and/or M+W are direct or indirect partners of AMD Fab 36. 
  
 (b)
Each of the events described in this Section 5.01(b) shall constitute good cause for terminating this Agreement. If a good cause for terminating this Agreement pursuant to clauses (iv) through (xi) hereinafter has occurred and is continuing, AMD Fab
36 may give notice of termination for good cause. Prior to the Loan Agreement Termination Date, the Security Agent pursuant to and in accordance with the Security Documents may, in the event of a good cause pursuant to any of the clauses (viii), (x)
or (xi), give notice of termination in all cases in accordance with the power of attorney attached as Annex 2. In the event of a good cause pursuant to any of the clauses (iv), (v) or (vii), AMD Inc. shall be entitled to give notice of such
termination in all cases in accordance with the power of attorney attached hereto as Annex 3. 
  

 I-10 

 The right of AMD Fab 36 to revoke AMD Inc.’s power of attorney for good cause shall remain unaffected In addition,
this Agreement shall automatically terminate (without any requirement for any action by any party hereto) immediately upon the occurrence of the good cause for terminating this Agreement described in clauses (i) through (iii) below. Upon termination
for good cause. this Agreement shall terminate on the date any such notice is given; upon automatic termination, this Agreement shall terminate upon the occurrence of the event (the respective date being the “Termination Date”).
Good causes for terminating this Agreement are as follows: 
  
 (i) the expropriation or condemnation of the Plant or any substantial part of the assets or business of AMD Fab 36 or AMD Fab 36 Holding by any Governmental Authority, or the involuntary suspension, or curtailment below seventy-five percent
of capacity, by AMD Fab 36 of the operation of the Plant for six months or more as a result of any change in or introduction of any Law occurring after the date hereof; 
  
 (ii) AMD Inc. or AMD Fab 36 Holding being required by any Governmental Authority to divest itself of all or a substantial
portion of its direct or indirect interest in AMD Fab 36, or AMD Fab 36 being required by any Governmental Authority to divest itself of all or a substantial portion of the Plant; 
  
 (iii) the destruction of the Plant or a substantial portion thereof and a decision by AMD Fab 36 not to rebuild the same
after having received insurance proceeds in respect of such destruction in an amount at least equal to the depreciated book value of such Plant or substantial portion thereof; 
  
 (iv) acceleration of the liabilities of AMD Fab 36 after expiration of an applicable additional period as a result of
occurrence of an event as specified in the Section of the Loan Agreement relating to the termination of the loan entitling the Banks to terminate the Loan Agreement and/or if the Facility Agent, the Security Agent or any of the Banks asserts a right
under any of the Security Documents (as defined in the Loan Agreement); 
  
 (v) the involuntary (including without limitation as a result of enforcement of any rights of security granted in shares of AMD Fab 36 Holding and/or AMD Fab 36 or performance of any undertakings to transfer such shares made to secure
obligations of AMD Fab 36 Holding and/or AMD Fab 36) transfer of a controlling interest in AMD Fab 36 Holding and/or AMD Fab 36 from AMD Inc. and its Subsidiaries to one or more third parties is threatened and bankruptcy proceedings are not opened
over the assets of AMD Fab 36 Holding and/or AMD Inc. within one (1) month from transfer of such controlling interest; 
  
 (vi) [deliberately blank]; 
  
 (vii) any event which (A) results in the termination of AMD Inc.’s rights to disclosure to AMD Fab 36 as contemplated by Section 1.01 and Article
III, or (B) otherwise terminates or makes impracticable the manufacture of Wafers as contemplated hereunder and bankruptcy proceedings are not opened over the assets of AMD Fab 36 Holding and/or AMD Inc. within one (1) month from occurrence of the
event; 
  

 I-11 

 (viii) failure of AMD Fab 36 Holding or AMD Inc. to make any payment required from it hereunder this
Agreement or under the AMD Fab 36 Holding Cost Plus Reimbursement Agreement within forty-five (45) days of the date due therefor or default by AMD Fab 36 Holding or AMD Inc. in the performance of or compliance with any other term contained in this
Agreement or any such other agreement and such default shall not have been remedied within thirty (30) days after receipt of notice of such default from AMD Fab 36, or if the Loan Agreement Termination Date has not yet taken place, the Facility
Agent and bankruptcy proceedings are not opened over the assets of AMD Fab 36 Holding and/or AMD Inc. within one (1) month from fulfillment of the aforesaid conditions. 
  
 (ix) a [deliberately blank]; 
  
 (x) execution is issued (Einleitung der Zwangsvollstreckung) against all or a substantial part of the assets of AMD Fab 36 Holding unless such
execution is withdrawn within three weeks of the issuance thereof; realization of such execution; or the realization of execution on the equity shares in AMD Fab 36 owned by AMD Fab 36 Holding and bankruptcy proceedings are not opened over the
assets of AMD Fab 36 Holding and/or AMD Inc. within one (1) month from fulfillment of the aforesaid conditions; . 
  
 (xi) the discontinuance of payments generally (Zahlungseinstellung) by AMD Fab 36 Holding and bankruptcy proceedings are not opened over the assets
of AMD Fab 36 Holding and/or AMD Inc. within one (1) month from discontinuance of payments; 
  
 Notice of termination may be given within forty-five (45) days from occurrence of the respective termination event. The right to assert statutory damage claims (Section 314 (4) BGB [German Civil Code] in conjunction
with Sections 280 et seq. BGB) on the ground of termination of this Agreement for the reasons set out in sub-sect. b) above remains unaffected. 
  
 Section 5.02. Rights Upon Termination. 
  
 (a) Promptly, but in no event later than 20 days following the Termination Date, 
  
 (i) the actual Selling Price for the Month ending on the Termination Date shall be calculated in accordance with Section
2.02; and 
  
 (ii) if no Products were Shipped in the Month ending
on the Termination Date, the final Advance Payment Adjustment Amount for that Month shall be calculated in accordance with Section 2.03. 
  
 (b) Upon termination of this Agreement, AMD Fab 36 Holding shall purchase all inventory and work-in-process of AMD Fab 36 as of the Termination Date. The
purchase price shall be equal to the value thereof as shown in the books of AMD Fab 36 in accordance with German GAAP. 
  

 I-12 

 (c) Upon termination of this Agreement, all amounts shall be offset between the parties and the balance
shall be settled by payment. 
  
 Section 5.03.
Survival. The provisions of Sections 2.09 and 2.10, 5.2, 6.02, 6.03 and 6.06 shall survive any termination of this Agreement. 
  
 ARTICLE VI  
  
 Miscellaneous 
  
 Section 6.01. Force Majeure. 
  
 (a) A party to this Agreement shall not be liable for the consequences of any failure to perform, or default in performing, any of its obligations, other
than its payment obligations, under this Agreement if that party can show that such failure is caused by Force Majeure. In the event that no Wafers can be manufactured due to Force Majeure, the payment obligations hereunder shall continue to be
owed. 
  
 (b) In case of subsection (a), the said failure shall
not be considered non-compliance with any term or condition of this Agreement, and all the obligations (other than payment obligations) and times which because of such Force Majeure could not be fulfilled shall be deemed to have been suspended while
the Force Majeure continues. In addition, the party for whom such obligations and/or times have been suspended shall be entitled to take reasonable steps during the pendency of the relevant Force Majeure to limit its losses resulting from such Force
Majeure, and following the occurrence of such Force Majeure such obligations and/or times shall continue to be suspended for such further reasonable period as is necessary for such party to restore its capacity to perform such obligations and/or
meet such times. 
  
 Section 6.02. Applicable
Law. This Agreement is governed by the law of the Federal Republic of Germany. Application of the UN Convention on Contracts for the International Sale of Goods of 11 April 1980 is expressly excluded. 
  
 Section 6.03. Dispute Resolution. 
  
 a) The parties shall endeavor to reach an amicable settlement of any dispute
arising out of or in connection with this Agreement and its implementation, including any question regarding its existence, validity, termination or its performance, or in connection with arrangements regarding the performance of this Agreement.

  
 b) If any party declares that a reasonable attempt at amicable
settlement of a dispute mentioned in sub-section a) has failed, such dispute shall be finally resolved by arbitration, to the exclusion of the courts of regular jurisdiction, under the Rules of Arbitration (Schiedsgerichtsordnung) of the
German Arbitration Board (“Deutsche Institution für Schiedsgerichtswesen e.V.”), by three arbitrators. The place of arbitration shall be Dresden, Germany. The German Code of Civil Procedure shall apply where the Rules of Arbitration
are silent. 
  

 I-13 

 c) The language to be used in the arbitration proceedings shall be German and all documents written in a
language other than German shall be translated into the German language for the arbitration proceedings, unless otherwise decided by the parties to the arbitration proceedings. 
  
 d) The arbitral awards shall be substantiated in writing. The arbitration tribunal shall decide on the matter of costs of
the arbitration and on the allocation of expenditure among the respective parties to the arbitration proceedings. 
  
 Section 6.04. Definitions 
  
 A list with definitions of the terms used in this Agreement is attached hereto. It is the will of the parties hereto that each of the terms listed in the
Annex 1 has the meaning specified there unless the context requires a different interpretation. 
  
 Section 6.05. Assignment 
  
 None of the parties hereto shall have the right to assign its rights hereunder without the prior written consent of the other party hereto, of AMD Inc., of Leipziger
Messe GmbH and of M+W as long as they are limited partners of AMD Fab 36 and, prior to the Loan Agreement Termination Date, of the Security Agent. However, AMD Fab 36 may assign its rights under this Agreement to the Security Agent and/or the Banks
as security for obligations of AMD Fab 36 under the Loan Agreement, and the Security Agent may in turn assign such rights to any direct transferee of the Plant in the context of the proper realization of such security. 
  
 Section 6.06. Language 
  
 The German version of this Agreement shall be controlling. 
  
 Section 6.07 Final Provisions  
  
 a) No modifications or amendments to this Agreement shall be binding unless
in writing. This requirement of written form may only be waived in writing. 
  
 b) If present or future terms of this Agreement are invalid or unenforceable in whole or in part or lose their validity or enforceability at a later date, this shall not affect the validity of the remaining provisions
hereof. The same shall apply insofar as it transpires that there is a gap in this agreement. The invalid or unenforceable provision shall be replaced, or the gap filled, by a reasonable provision which, to the extent legally permissible, comes
closest to what the contracting parties intended or would have intended in accordance with the meaning and purpose of this Agreement, had they considered the point upon 
  

 I-14 

 conclusion hereof. This also applies if the invalidity of a provision results from a degree of performance standardized
hereunder (set period, date); in such cases a legally permissible degree of performance or time (set period, date), coming as close as possible to the intentions, shall replace what was agreed. In case of disputes arising among the parties hereto
due to subsections a) and b) above, the arbitration tribunal (Section 6.03) shall be entitled to determine with binding force the provision which is to apply thereunder. 
  
 Dresden, April 21, 2004 
  

					
	 /s/ Dr. Hans-Raimund Deppe

	 	 	 	 /s/ Dr. Hans-Raimund Deppe

	AMD Fab 36 Limited Liability	 	 	 	AMD Fab 36 Holding GmbH
	Company & Co. KG, represented by	 	 	 	Dr. Hans-Raimund Deppe
	AMD Fab 36 LLC	 	 	 	Managing Director
	Dr. Hans-Raimund Deppe	 	 	 	 
	Manager	 	 	 	 

  

 I-15 

 Annex 1 
  
 to the AMD Cost Plus Reimbursement Agreement 
  
 Definitions 
  

	(1)	“Actual Volume” means, with respect to any Month, the actual number of Wafers Shipped by AMD Fab 36 to AMD Fab 36 Holding during that Month;

  

	(2)	“Banks” means the banks from time to time party to the Loan Agreement; 

  

	(3)	“Effective Date” means the first day of AMD Fab 36’s first Fiscal Quarter during which commercial shipment of Products occurs, however no later date than
January 1, 2006; 

  

	(4)	“Facility Agent” means Dresdner Bank Luxembourg S.A., as Facility Agent under the Loan Agreement, including any successor to Dresdner Bank Luxembourg S.A. in that
capacity; 

  

	(5)	“Force Majeure” means with respect to AMD Fab 36 or AMD Fab 36 Holding, as the case may be, an event which is not within the reasonable control of the Person
seeking to rely on the existence of Force Majeure, where the adverse effect of such event on such Person’s compliance with its obligations under this Agreement is not preventable by such Person using all reasonable care and diligence. Such
events may include, without limitation, the following: acts of war (whether declared or undeclared), invasion, armed conflict, acts of one or more enemy of the United States of America, Germany or any other country or jurisdiction; blockade or
embargo, revolution, riot, bombs, insurrection or other civil disturbance, sabotage, terrorism or the threat of any of the foregoing, nuclear explosion, radioactive or chemical contamination or ionizing radiation, strikes, lockouts, industrial
action or labor disputes, any effect of the natural elements including without limitation lightning, fire, earthquake, flood, strike and other unusual or extreme adverse weather or environmental conditions or actions of the elements, epidemic or
plague, loss of or damage to the Plant and/or machinery, equipment or materials at, for or in transit to the Plant and any events or circumstances analogous to any of the above; 

  

 II-1 

	(6)	“German GAAP” means accounting principles and practices generally accepted in Germany, consistently applied throughout the periods involved;

  

	(7)	“Improvements” means any development, enhancement, improvements, upgrades, modifications and updates (including error corrections), translations and derivative
works; 

  

	(8)	“JDA” means the “S” Process Development Agreement dated as of December 28, 2002 between AMD Inc. and International Business Machines Corporation, as
amended, modified or supplemented from time to time; 

  

	(9)	“Know-how” means know-how, show-how, methods, techniques, procedures, formulations, formulae, assembly, installation, operating and quality control procedures and
manuals, quality control standards, technical information, technical and product specifications, equipment requirements, writings, plans, drawings, designs, layouts, data, equipment descriptions, masks, mask works, systems, toolings, software, data,
copyrightable material, trade secrets, inventions (whether patentable or not), improvements, developments, discoveries and any other information or intellectual property rights which lie outside the domain of public knowledge, in whole or in part;

  

	(10)	“License Agreement” means the License Agreement among AMD Inc., AMD Fab 36 Holding and AMD Fab 36 entered into concurrently herewith, as such License Agreement may
be amended, supplemented or otherwise modified from time to time; 

  

	(11)	“Loan Agreement” means the EUR 700 million Syndicated Loan Agreement, signed on [    ], among AMD Fab 36, the Banks, the Facility Agent, the
Security Agent and the Reporting Agent (Dresdner Bank AG and any successor to Dresdner Bank AG in that capacity), as such Loan Agreement may be amended, supplemented or otherwise modified from time to time; 

  

	(12)	“Loan Agreement Termination Date” means the first day on which (i) all Obligations (under, and as defined in, the Loan Agreement) have been paid in full, and (ii)
the Banks have no commitments under the Loan Agreement); 

  

	(13)	[deliberately blank] 

  

 II-2 

	(14)	“Period” means any Fiscal Quarter of AMD Fab 36 beginning with the Effective Date and quarters subsequent; provided that no Period shall extend beyond, and the
final Period shall end on, the Termination Date; 

  

	(15)	“Plant” means the advanced production facility to be constructed, owned and operated by AMD Fab 36 in Dresden, Germany to manufacture Wafers using high-volume
semiconductor wafer fabrication processes; 

  

	(16)	“Production Problems” means any circumstances other than those resulting from Force Majeure pertaining to AMD Fab 36, which prevent the manufacture or shipment of a
Product by AMD Fab 36, including any temporary or permanent inability to apply or continue to apply Intellectual Property in the manufacture of such Product; 

  

	(17)	“Qualified Personnel” has the meaning assigned to it in Section 3.02; 

  

	(18)	[deliberately blank]; 

  

	(19)	“Security Agent” means Dresdner Bank AG, as security agent under the Loan Agreement, including any successor to Dresdner Bank AG in such capacity;

  

	(20)	“Selling Price Per Wafer” has the meaning assigned to it in Section 2.02(b); 

  

	(21)	“Shipped” means, with respect to any Products and any Month, Products delivered by AMD Fab 36 pursuant to Section 2.05 during that Month in accordance with this
Agreement; 

  

	(22)	“Specifications” means, with respect to a Product, the tooling, masks, mask-works, specifications, blueprints, drawings, assembly instructions and other
instructions required for the manufacture of that Product; 

  

	(23)	“Start-up Costs” means the aggregate amount of Total Costs incurred by AMD Fab 36 prior to the Effective Date; 

  

	(24)	“Subsidiary” means, with respect to any person, any other person of which more than 50% of the total voting power of shares of stock or other ownership interest
entitled to vote in the election of directors, managers or trustees thereof is at the time owned or controlled, directly or indirectly, by that person or one or more of the other Subsidiaries of that person are a combination thereof;

  

 II-3 

	(25)	“Technical Documentation” for any Know-how means manuals and other documentation in which such Know-how is recorded and all specifications, programs, software,
formulae, drawings, sketches, plans, blueprints, design materials, manuals and other technical or organizational documentation for such Know-how; 

  

	(26)	“Total Costs” means, for any Month, all costs incurred, paid or accrued by AMD Fab 36 and included for that Month in the net income for the year/net loss for the
year [Jahresübershuss/Jahresfehlbetrag] in accordance with German GAAP (i.e., § 275 of the German Commercial Code (Handelsgesetzbuch)) except income and corporate income taxes, all as shown in the income statement of AMD Fab
36; provided that 

  

	 	(a)	German GAAP, solely for purposes of this definition, shall be applied according to the accounting options specified under items (i) through (x) of this definition below regardless
of whether German GAAP is so applied in the income statement of AMD Fab 36; 

  

	 	(b)	Total Costs shall be reduced by any revenue or income (other than revenue under this Agreement) accrued or received by AMD Fab 36, including damage claims asserted by AMD Fab 36
against third parties, which revenue or income shall include any income from capital accrued or received by AMD Fab 36 as well as net payments received in respect of hedging transactions.; 

  

	 	(c)	Total Costs shall include all interest expense paid or accrued (owed) by AMD Fab 36, including all interest expense relating to loans to AMD Fab 36 from third parties. Total Costs
shall not include any interest expense relating to loans to AMD Fab 36 from AMD Fab 36 Holding or AMD Inc. (“Intercompany Loans”); furthermore, Total Costs shall not include the profit shares of the silent partners;

  

	 	(d)	Total Costs shall not include any trade tax (Gewerbesteuer), any similar tax, or any tax levied or imposed in lieu of trade tax, including but not limited to municipal
commercial tax (Kommunale Wirtschaftssteuer); 

  

	 	(e)	Total Costs shall be reduced by any grants, subsidies and expense reimbursements received by AMD Fab 36 from the Republic of Germany, 

  

 II-4 

	 	  	the Sächsische Aufbaubank, the Free State of Saxony, the City of Dresden, or from any other Governmental Authority, and such reduction shall be made in the manner specified in
(iv), (v) or (vi) below (as applicable). 

  

	 	(f)	Payments by AMD Fab 36 Holding under this Cost Plus Reimbursement Agreement shall not be considered as cost basis; 

  

	 	(g)	Total Costs for any Month after the Effective Date shall be increased by the amount of the Total Costs in the immediately preceding Month (if any) if no Products were shipped during
such preceding Month (and the parties hereto acknowledge that the amount by which the Total Costs shall be increased pursuant to this clause (g) therefore corresponds to the aggregate Total Costs for all immediately preceding consecutive Months in
which no Products were Shipped, in each case without giving effect to this clause (g); 

  

	 	(h)	Total Costs for each Month shall be (i) decreased for that Month by the amount by which the work-in-process and finished products inventory at the end of that Month exceeds the
amount of the work-in-process and finished products inventory at the end of the immediately preceding Month, and (ii) increased for that Month by the amount by which the work-in-process and finished products inventory at the end of that Month is
less than the amount of the work-in-process and finished products inventory at the end of the immediately preceding Month. In the case of finished products, the inventory change shall not exceed the production for one Month in each case;

  

	 	(i)	For avoidance of doubt, Total Costs shall also include all expense reimbursements paid by AMD Fab 36 to AMD Fab 36 LLC, but shall not include compensation paid by AMD Fab 36 to the
general partners of AMD Fab 36 for acting as general partner. 

  
 With reference to clause (a) of this definition above, 
  

	 	(i)	Start-up Costs will not be capitalized; 

  

 II-5 

	 	(ii)	[deliberately blank] 

  

	 	(iii)	exceptional depreciation in order to state fixed assets at a lower value, and reversals of such depreciation in the case that the reasons for an exceptional depreciation no longer
exist, will be included; 

  

	 	(iv)	revenues from investment grants (Investitionszuschüsse) and allowances (Investitionszulagen) will be allocated chronologically to the investments in buildings,
machinery, tools and other equipment to which they relate. They will be amortized parallel to the depreciation of the corresponding fixed assets and so will reduce these depreciation costs; 

  

	 	(v)	without limiting the generality of clause (a) of this definition, such amortization pursuant to (iv) above shall occur regardless of whether AMD Fab 36 elects to treat some or all
of such grants and allowances as income in the year received for purposes of AMD Fab 36’s financial statements; 

  

	 	(vi)	all grants, allowances, subsidies, or expense reimbursements described in clause (e) of this definition but which are not investment grants (Investitionszuschüsse),
allowances (Investitionszulagen) or research and development subsidies will reduce Total Costs in the Month received by the full amount received in that Month; 

  

	 	(vii)	write-downs on current assets due to obsoleteness or solvency reasons will be included; 

  

	 	(viii)	[deliberately blank] 

  

	 	(ix)	the deferred taxes as defined by Section 274 German Commercial Code [Handelsgesetzbuch] are not included; 

  

	 	(x)	accruals for repairs and maintenance expenses, necessary demolition and/or dismantlement, environmental obligations and other future expenses (so-called Aufwandsrückstellungen,
§ 249 section 1 sentence 2 no. 1 of the German Commercial Code) will be included to the extent they are made in the financial statements of AMD Fab 36; and 

  

 II-6 

	 	(xi)	it is made clear that expenses incurred for discharging warranty obligations vis-à-vis AMD Fab 36 Holding shall not reduce Total Costs; 

  

	 	(27)	“Wafer” means a 300 mm silicon wafer on which integrated circuits, in particular, for microprocessor chips are fabricated. 

  

 II-7 

 EXHIBIT I 
  

Section 275 of the German Commercial Code 
  

	[1]	The profit and loss statement shall be prepared in a vertical format according to the total cost procedure or the sales cost procedure. In so doing, the entries designated in
Subsection 2 or 3 shall be shown separately in the sequence given there. 

  

	[2]	In using the total cost procedure, the following shall be shown: 

  

	 	1.	Sales proceeds 

  

	 	2.	Increase or decrease in the inventory of finished products and work in progress 

  

	 	3.	Other capitalized own work 

  

	 	4.	Other operating income 

  

	 	5.	Material costs: 

  

	 	a)	Costs of raw material, supplies, operating materials and acquired goods 

  

	 	b)	Costs of acquired services 

  

	 	6.	Personnel costs: 

  

	 	a)	Wages and salaries 

  

	 	b)	Social security and expenses for old age pensions and support, noting the amount for old age pensions 

  

	 	7.	Depreciation and Amortization: 

  

	 	a)	For intangible fixed assets and tangible assets as well as capitalized expenditures for starting up or expanding the business 

  

	 	b)	For current assets to the extent that they exceed the corporation’s usual depreciation or amortization 

  

	 	8.	Other operating expenses 

  

	 	9.	Income from participations, noting the amount from related enterprises 

  

	 	10.	Income from other securities and long-term loans, noting the amount from related enterprises 

  

	 	11.	Other interest and similar income, noting the amount from related enterprises 

  

	 	12.	Amortization of financial assets and of securities included in current assets 

  

 II-8 

	 	13.	Interest and similar expenses, noting the amount to related enterprises 

  

	 	14.	Results from ordinary business operations 

  

	 	15.	Extraordinary income 

  

	 	16.	Extraordinary expenses 

  

	 	17.	Extraordinary results 

  

	 	18.	Taxes on income and revenue 

  

	 	19.	Other taxes 

  

	 	20.	Annual surplus/annual deficit. 

  

	[3]	In using the sales cost method, the following shall be shown: 

  

	 	1.	Sales proceeds 

  

	 	2.	Production costs for performance provided in achieving the sales proceeds 

  

	 	3.	Gross earnings from sales 

  

	 	4.	Selling expenses 

  

	 	5.	General administrative expenses 

  

	 	6.	Other operating income 

  

	 	7.	Other operating expenses 

  

	 	8.	Revenues from participations, noting the amount from related enterprises 

  

	 	9.	Income from other securities and long-term loans, noting the amount from related enterprises 

  

	 	10.	Other interest and similar income, noting the amount from related enterprises 

  

	 	11.	Amortization of financial assets and of securities included in current assets 

  

	 	12.	Interest and similar expenses, noting the amount to related enterprises 

  

	 	13.	Results of ordinary business operations 

  

	 	14.	Extraordinary income 

  

	 	15.	Extraordinary expenses 

  

	 	16.	Extraordinary results 

  

	 	17.	Taxes on income and revenue 

  

	 	18.	Other taxes 

  

	 	19.	Annual surplus/annual deficit. 

  

	[4]	Changes in the capital and earnings reserves may be shown in the profit and loss statement only after the entries “Annual surplus/annual deficit”.

  

 II-9 

 Annex 2 
  
 Power of Attorney for Security Agent 
  

			
	 VOLLMACHT
	 	POWER OF ATTORNEY
	 Ich, der Unterzeichnende,
	 	 I, the undersigned

  

			
	 Dr. Hans-Raimund Deppe
  

	 geschäftsansässig /with business address at
  

	 Wilschdorfer Landstr. 101
 D-01109 Dresden, Germany
  

	 hier handelnd nicht im eigenen Namen, sondern als einzelvertretungsberechtigter Geschäftsführer für die
  
	 	 here acting, not for himself, but as Manager, authorized to act on his sole signature, of
  

	 AMD Fab 36 LLC
 Wilmington, Delaware, USA
  
 Hauptgeschäftsniederlassung / Main office:
 One AMD Place, Sunnyvale, California 94088, USA
  

	eine Gesellschaft nach dem Recht des Staates Delaware, USA, diese wiederum handelnd für die	 	 a limited liability company organized and existing under the laws of the State of Delaware, USA, such company acting for
  

	 AMD Fab 36 Limited Liability Company & Co. KG,
 Wilschdorfer Landstr. 101
 D-01109 Dresden, Germany
  

	erteile hiermit	 	hereby irrevocably authorize

  

 11 

			
	 Dresdner Bank AG,
 Koppenstr. 92
  
 10877 Berlin
  

	unwiderruflich Einzelvollmacht, die AMD Fab 36 Limited Liability Company & Co. KG bei folgenden Angelegenheiten zu vertreten und Untervollmacht in demselben Rahmen zu erteilen:	 	to represent AMD Fab 36 Limited Liability Company & Co. KG, acting singly, with respect to the following matters and to grant sub-power of attorney to the same extent:
		
	Kündigung der AMD Fab X Kostenerstattungs-Vereinbarung zwischen AMD Fab 36 Holding GmbH und AMD Fab 36 Limited Liability Company & Co. KG vom 21. April 2004 aus wichtigem Grund bei
Vorliegen eines Kündigungsgrundes nach Artikel V Ziffer 1 lit. b) (viii), (x) oder (xi) der AMD Fab X Kostenerstattungs-Vereinbarung.	 	Termination for good cause of the AMD Fab X Cost Plus Reimbursement Agreement between AMD Fab 36 Holding GmbH and AMD Fab 36 Limited Liability Company & Co. KG dated April 21, 2004 in the
event of a good cause pursuant to any of the clauses 5.01 (b) (viii), (x) or (xi) of the AMD Fab X Cost Plus Reimbursement Agreement.
		
	Der Bevollmächtigte ist berechtigt, alle Handlungen vorzunehmen und alle Erklärungen abzugeben und entgegenzunehmen, die im Zusammenhang mit den vorgenannten Angelegenheiten notwendig
oder sinnvoll sind.	 	The representative shall be entitled to undertake any and all measures to make or receive any and all declarations that are necessary or appropriate in connection with the aforementioned
matters.
		
	Diese Vollmacht erlischt mit dem Ablaufdatum des Darlehensvertrages (wie in der AMD Fab X Kostenerstattungs-Vereinbarung in der jeweils geltenden Fassung definiert).	 	This power of attorney expires on the Loan Agreement Termination Date (as defined in the AMD Fab X Cost Plus Reimbursement Agreement, as amended from time to time).
		
	Diese Vollmacht unterliegt dem Recht der Bundesrepublik Deutschland. Die deutsche Fassung dieser Vollmacht soll im Fall von Widersprüchen oder Abweichungen die maßgebliche
sein.	 	This power of attorney is subject to the Laws of the Federal Republic of Germany. The German language version shall be governing in the event of any dispute or ambiguity.

  

 12 

 Dresden, 21. April 2004 
  
  

  
 Dr. Hans-Raimund Deppe 
 Vice President und
General Manager 
 Geschäftsführer 
  

 13 

 Annex 3 
  
 Power of Attorney for AMD Inc. 
  

			
	 VOLLMACHT
	 	POWER OF ATTORNEY
	 Ich, der Unterzeichnende,
	 	I, the undersigned
	  
 Dr. Hans-Raimund Deppe
  

	 geschäftsansässig /with business address at
  

	 Wilschdorfer Landstr. 101
 D-01109 Dresden, Germany
  

	 hier handelnd nicht im eigenen Namen, sondern als einzelvertretungsberechtigter Geschäftsführer für die
  
	 	 here acting, not for himself, but as Manager, authorized to act on his sole signature, of
  

	 AMD Fab 36 LLC
 Wilmington, Delaware, USA
  
 Hauptgeschäftsniederlassung / Main office:
 One AMD Place, Sunnyvale, California 94088, USA
  

	 eine Gesellschaft nach dem Recht des Staates Delaware, USA, diese wiederum handelnd für die
  
	 	 a limited liability company organized and existing under the laws of the State of Delaware, USA, such company acting for
  

	 AMD Fab 36 Limited Liability Company & Co. KG,
 Wilschdorfer Landstr. 101
 D-01109 Dresden, Germany
  

	erteile hiermit	 	hereby authorize

  

 14 

			
	 Advanced Micro Devices, Inc.
 One AMD Place,
 Sunnyvale, CA 94088, California
  

	 Einzelvollmacht, die AMD Fab 36 Limited Liability Company & Co. KG bei folgenden Angelegenheiten zu vertreten und Untervollmacht in demselben
Rahmen zu erteilen:
  
	 	to represent AMD Fab 36 Limited Liability Company & Co. KG, acting singly, with respect to the following matters and to grant sub-power of attorney to the same extent:
	 Kündigung der AMD Fab X Kostenerstattungs-Vereinbarung zwischen AMD Fab 36 Holding GmbH und AMD Fab 36 Limited Liability Company & Co. KG
vom 21. April 2004 aus wichtigem Grund bei Vorliegen eines Kündigungsgrundes nach Artikel V Ziffer 1 lit. b) (iv), (v) oder (vii) der AMD Fab X Kostenerstattungs-Vereinbarung.
  
	 	Termination for good cause of the AMD Fab X Cost Plus Reimbursement Agreement between AMD Fab 36 Holding GmbH and AMD Fab 36 Limited Liability Company & Co. KG dated April 21, 2004 in the
event of a good cause pursuant to any of the clauses 5.01 (b) (iv), (v) or (vii) of the AMD Fab X Cost Plus Reimbursement Agreement.
	 Der Bevollmächtigte ist berechtigt, alle Handlungen vorzunehmen und alle Erklärungen abzugeben und entgegenzunehmen, die im Zusammenhang
mit den vorgenannten Angelegenheiten notwendig oder sinnvoll sind.
  
	 	The representative shall be entitled to undertake any and all measures to make or receive any and all declarations that are necessary or appropriate in connection with the aforementioned
matters.
	AMD Fab 36 Limited Liability Company & Co. KG hat das Recht, diese Vollmacht jederzeit aus wichtigem Grund zu widerrufen. In diesem Fall ist diese Vollmachtsurkunde unverzüglich an AMD
Fab 36 Limited Liability Company & Co. KG zurückzugeben.	 	AMD Fab 36 Limited Liability Company & Co. KG shall be entitled to revoke this Power of Attorney at any time for good cause. In such case, this power of attorney has to be promptly returned
to AMD Fab 36 Limited Liability Company & Co. KG.

  

 15 

			
	Diese Vollmacht unterliegt dem Recht der
Bundesrepublik Deutschland. Die deutsche Fassung
dieser Vollmacht soll im Fall von Widersprüchen oder
Abweichungen die maßgebliche
sein.	 	This power of attorney is subject to the Laws of the
Federal Republic of Germany. The German language
version shall be governing in the event of any dispute
or
ambiguity.
	  
 Dresden, 21. April 2004
  
  

  
 Dr. Hans-Raimund Deppe
 Vice President und General Manager
 Geschäftsführer

  

 16

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