Document:

exv10w1

Exhibit 10.1

[Rowan Companies, Inc. letterhead]

October 31, 2008

Mr. D. F. McNease

2800 Post Oak Boulevard, Suite 5450

Houston, Texas 77056-6127

Dear Danny:

          In connection with your separation from Rowan Companies, Inc., a Delaware corporation
(“Rowan”), and in consideration of your continuing agreements and valuable services to Rowan and
its subsidiaries and affiliates which are directly or indirectly controlled by Rowan (collectively,
the “Company”) as provided herein, you and Rowan have agreed to the terms and conditions as
contained in this letter agreement (the “Letter Agreement”) and in the attachment to the Letter
Agreement (the “Attachment”) to (hereinafter the Attachment and the Letter Agreement are jointly
the “Agreement”) concerning your separation from employment and resignation as a director, both
effective as of the close of business on December 31, 2008 (the “Separation Date”). The Attachment
is part of the Letter Agreement for all purposes. Your resignations as an officer and director are
attached hereto as Exhibit A.

          You affirm and agree that your employment relationship ends on your Separation Date, and as of
such date you withdraw unequivocally, completely and finally from your employment, you resign all
positions, titles, responsibilities and authority as a director, officer or employee of the
Company, and waive all rights in connection with such relationship, except with respect to vested
benefits as provided for under plan documents of the Company, the benefits and payments described
in this Agreement, and such rights as reserved under Section 13 hereof. You agree to return all
Company personal property in your possession to Rowan promptly after your Separation Date.

          Rowan agrees to provide you with the benefits, payments and other items described in this
Agreement.

          1. Consulting and Cooperation. Following the Separation Date, Rowan agrees to engage you in a
consulting capacity, and you agree to serve Rowan in a consulting capacity, for the twenty-four
month period commencing on the Separation Date and ending on December 31, 2010 (the “Consulting
Period”). During the Consulting Period, you agree to consult, cooperate with and advise the
officers of Rowan or the Board of Directors of Rowan (the “Board”) as and when requested by any of
them upon reasonable notice, with respect to matters involving the business and affairs of the
Company. It is agreed and understood that your status while performing services hereunder will for
all purposes be that of an independent contractor and not that of an employee of Rowan. You and
Rowan agree that your consulting services during the Consulting Period are not reasonably
anticipated to exceed 20% of the average level of services performed by you for the Company during
the 36-month period

 

 

immediately preceding your Separation Date as determined under Treasury
Regulation §1.409A-
1(h)(1)(ii) as promulgated under Section 409A of the Internal Revenue Code of 1986, as
amended, and the rules, notices and regulations thereunder (collectively, the “Code”). Rowan shall
provide you with the necessary resources to perform any consulting services requested by Rowan.
You acknowledge that you are responsible for payment of your estimated federal income taxes,
employment taxes, social security taxes and any other taxes that may accrue under law by reason of
the compensation for your services to be provided as a consultant hereunder. You further
acknowledge that after the Separation Date you are not entitled nor eligible to participate in any
employee benefit plans of the Company except as specifically provided in the Attachment.

          2. Confidentiality. You agree, for yourself and for your heirs, dependents, assigns, agents,
executors, administrators, trustees and legal representatives, that you will (and will use your
best efforts to cause such affiliates to) hold in a fiduciary capacity for the benefit of the
Company all trade secrets, and information, knowledge or data relating to the Company treated as
confidential by the Company which have been and will be given to you by the Company and which shall
not have been or hereafter become public knowledge (other than by your acts or the acts of your
affiliates in violation of this Agreement) (hereinafter being collectively referred to as
“Confidential Information”). Examples of “Confidential Information” include, without limitation,
rig descriptions and drawings, layouts, arrangement drawings, customer contacts and customer lists.
You agree that you shall not, without the prior written consent of Rowan or as may otherwise be
required by law or legal process, communicate or divulge any Confidential Information to anyone
other than Rowan and those designated by Rowan. In the event that you may be required by law or
legal process to communicate or divulge any Confidential Information, you agree to so notify the
General Counsel of Rowan and to exercise your commercially reasonable best efforts to assure that
confidential treatment will be accorded to such of the Confidential Information which Rowan so
designates, and you shall then disclose only that portion of the Confidential Information that is
legally required to be disclosed. Rowan shall advance and pay your reasonable legal fees (and
related legal expenses) incurred in connection with any such event. Any such payment shall be due
upon receipt by Rowan of your written request for payment, accompanied by such evidence of the
legal fees and expenses incurred by you as Rowan reasonably may require. Any such payment shall be
made on the last business day of the calendar month following the calendar month in which the
payment becomes due; provided, however, that any such payment shall be made not later than the
close of the calendar year following the calendar year in which the legal fees and expenses are
incurred by you. You will obtain the consent of the General Counsel of Rowan to your selection of
legal counsel for this purpose, which consent shall not be unreasonably withheld. You agree to
return all Confidential Information, including all photocopies, extracts and summaries thereof, and
any such information stored electronically on tapes, computer disks or in any other manner, to
Rowan as soon as practicable and in no event later than your Separation Date.

          3. Non-Competition. You acknowledge that during your employment the Company provided you with
access to Confidential Information of the Company and specialized knowledge concerning any business
in which the Company was engaged at any time in the two years preceding the Separation Date (as
described in the Forms 10-K and 10-Q of Rowan),

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including the provision of international and
domestic contract drilling services and the
production of equipment for the drilling, mining, steel and timber industries (collectively,
the “Company Business”), all of which was developed by the Company at great cost and that are of
critical importance in securing and maintaining business prospects, in retaining the accounts and
goodwill of present customers and protecting the business of the Company throughout the United
States and other locations in which it conducts the Company Business. You acknowledge that if a
competitor of the Company gained access to said Confidential Information, the competitor would be
able to unfairly compete with the Company in the Company Business anywhere in the United States,
Europe, and elsewhere. Accordingly, you agree that without the prior written consent of the Board
(which consent may be withheld in its sole discretion) (i) for the two-year period commencing on
your Separation Date, you will not in the United States or any other country where the Company
conducts operations related to the Company Business, directly or indirectly, either as an
individual, proprietor, stockholder (other than as a holder of up to one (1%) percent of the
outstanding shares of a corporation whose shares are listed on a stock exchange or traded in
accordance with the automated quotation system of the National Association of Securities Dealers),
partner, officer, employee, director (including as a director of the buyer of LeTourneau
Technologies, Inc., a Delaware corporation) or otherwise, work for, become an employee of, invest
in, provide consulting services or in any way engage in any business which provides, produces,
leases or sells products or services of the same or similar type provided, produced, leased or sold
in the Company Business in any area where the Company provided, produced, leased or sold such
products or services at any time during the two years preceding your Separation Date and (ii) you
will not accept any position with any person that has within the two years preceding the Separation
Date purchased or acquired more than one percent (1%) of the common stock or any significant assets
of the Company.

          4. Non-Solicitation. For the two-year period commencing on your Separation Date, you agree
that you will not, directly or indirectly, for your benefit or for the benefit of any other person,
firm or entity, solicit the employment or services of, or hire, any person who was employed by the
Company upon your Separation Date, or within six months prior thereto. In addition, for the
two-year period commencing on your Separation Date, you will not, directly or indirectly, and will
not encourage or assist others to, without the prior written consent of the Board (which consent
may be withheld in its sole discretion) (i) make, or in any way participate in, any “solicitation”
(as such terms are used in the Securities Exchange Act of 1934, as the same may be amended from
time to time (the “Exchange Act”), or to vote or seek to advise or influence in any manner
whatsoever any person or entity with respect to the voting of any securities of Rowan, or (ii)
form, join, or in any way communicate or associate (by phone, e-mail or otherwise) with other
stockholders of Rowan or participate in a “group” (within the meaning of Section 13(d)(3) of the
Exchange Act) with respect to any voting securities of Rowan.

          5. Employee Acknowledgements. You acknowledge and agree that: (i) the Company is and will
continue to be engaged in the Company Business; (ii) during your employment you were one of a
limited number of persons that were primarily responsible for the conduct, management, operation,
and development of the Company Business; (iii) the Company is and will be actively engaged in the
Company Business, throughout the United States, Europe,

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and elsewhere; (iv) during your employment
you occupied a position of trust and confidence
with the Company, and were familiar with the Company’s Confidential Information; and (v) the
terms and conditions set forth in the non-competition, non-solicitation and confidentiality
provisions of this Agreement (the “Post-Employment Obligations”) are reasonable and constitute an
otherwise enforceable agreement to which the Post-Employment Obligations are ancillary or a part of
as contemplated by Tex. Bus. & Com. Code Ann. sections 15.50-15.52; (vi) the consideration given by
the Company under this Agreement for the Post-Employment Obligations, including, without
limitation, the access to Confidential Information and specialized knowledge, are not illusory and
give rise to the Company’s interest in restraining and prohibiting you from engaging in the unfair
competition prohibited by the Post-Employment Obligations and your promise not to engage in the
unfair competition prohibited by the Post-Employment Obligations is designed to enforce your return
promises, including your promise to not use or disclose Confidential Information of the Company;
and (vii) compliance with the Post-Employment Obligations is a condition precedent to the Company’s
obligation to make payments of any nature to you, subject to the other provisions hereof.

          6. Remedies for a Violation of Non-Competition, Non-Solicitation and Confidentiality
Provisions. Without limiting the right of the Company to pursue all other legal and equitable
rights available to it for violation of any of the Post-Employment Obligations, you agree that a
violation of any of the Post-Employment Obligations would cause irreparable injury to the Company
for which it would have no adequate remedy at law. Any controversy or claim arising out of or
relating to the Post-Employment Obligations, or any alleged breach of the Post-Employment
Obligations, shall be settled by binding arbitration in accordance with the provisions below.
Notwithstanding the foregoing, however, the Company specifically retains the right before, during
or after the pendency of any arbitration to seek injunctive relief from a court having jurisdiction
for any actual or threatened breach of the Post-Employment Obligations without necessity of
complying with any requirement as to the posting of a bond or other security (it being understood
that you hereby waive any such requirement). Any injunctive relief shall be in addition to any
other remedies to which the Company may be entitled at law or in equity or otherwise, and the
institution and maintenance of an action or judicial proceeding for, or pursuit of, such injunctive
relief shall not constitute a waiver of the right of the Company to submit the dispute to
arbitration.

          If the provisions of the Post-Employment Obligations should ever be deemed to exceed the time,
geographic or occupational limitations permitted by the applicable law, you and Rowan agree that
such provisions shall be and are hereby reformed to the maximum time, geographic or occupational
limitations permitted by the applicable law, and the determination of whether you violated such
Post-Employment Obligations will be based solely on the limitation(s) as reformed.

          In addition to the consideration described above, you agree that 50% of the total amount of
severance payments set forth under Item A.2 of the Attachment to this Agreement constitutes
additional consideration for the Post-Employment Obligations (the “Post-Employment Obligation
Consideration”). You specifically recognize and agree that should all or any part of the
Post-Employment Obligations be held or found invalid or unenforceable for any

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reason whatsoever by
a court of competent jurisdiction in a legal proceeding between you and
Rowan, Rowan shall be entitled to immediately cease payment of any unpaid Post-Employment
Obligation Consideration and return and receipt from you of any Post-Employment Obligation
Consideration already paid to you, including interest on all amounts paid to you at the maximum
lawful rate; provided, however, that you shall not forfeit and shall have no obligation to return
any part of the Post-Employment Obligation Consideration if the Post-Employment Obligations are
held invalid or unenforceable at the request of Rowan in such legal proceeding.

          7. Non-Disparagement. You agree, for yourself and for your heirs, dependents, assigns,
agents, executors, administrators, trustees and legal representatives, that you will not (and will
use your best efforts to cause such affiliates to not) at any time engage in any form of conduct,
or make any statements or representations, including comments on any internet site, “message board”
or “chatroom”, that disparage or otherwise impair the reputation, goodwill, or commercial interests
of the Company, or any of its agents, officers, directors, employees and/or stockholders. Rowan
agrees that it will not (and will use its best efforts to cause its officers and directors to not)
issue any press release or make any statements or representations, including comments on any
internet site, “message board” or “chatroom”, that disparage or otherwise impair your business
reputation. The foregoing shall not be violated by: (i) truthful statements by either party in
response to legal process or required governmental testimony or filings; (ii) statements by
directors or officers of Rowan that they in good faith believe are necessary or appropriate to make
in connection with performing their duties to Rowan; or (iii) statements by you that you in good
faith believe are necessary or appropriate to make to refute statements of Rowan, or the directors
and officers of Rowan.

          8. Litigation Assistance. You agree to assist Rowan in litigation matters as may be
reasonably requested by Rowan’s General Counsel. Rowan and you agree to work out reasonable
accommodations for the provision of such litigation assistance so that it does not unreasonably
interfere with any of your personal affairs, business endeavors or future employment. No such
services shall be requested of you except by Rowan’s General Counsel. Rowan shall advance and pay
your reasonable legal fees (and related legal expenses) incurred in connection with any such event.
Any such payment shall be due upon receipt by Rowan of your written request for payment,
accompanied by such evidence of the legal fees and expenses incurred by you as Rowan reasonably may
require. Any such payment shall be made on the last business day of the calendar month following
the calendar month in which the payment becomes due; provided, however, that any such payment shall
be made not later than the close of the calendar year following the calendar year in which the
legal fees and expenses are incurred by you. You will obtain the consent of the General Counsel of
Rowan to your selection of legal counsel for this purpose, which consent shall not be unreasonably
withheld.

          9. Continuation of Personnel. From and after September 1, 2008, you agree that you have not
terminated and you will not terminate any officer or executive of the Company without prior
consultation with and express consent of the Board.

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          10. Legal Fees and Expenses. In any action arising out of this Agreement, the prevailing
party shall be entitled to his or its costs of action, including but not limited to reasonable
attorneys’ fees and the fees of experts.

          11. Clawback. In the event it is discovered after the Separation Date that you committed
fraud or engaged in intentional misconduct that would have required disclosure under federal
securities laws during the time period from January 1, 2006 through the Separation Date (the
“applicable period”), you shall reimburse the Company for (i) any bonus and other incentive-based
or equity-based compensation received by you from the Company during the applicable period, and
(ii) any profits realized from the sale of shares of the Company issued upon the exercise of stock
options or the vesting of restricted shares or performance shares during the applicable period.

          12. Assignment; Successors; Binding Agreement.

               (a) Except as otherwise provided in this Section 12, this Agreement may not be assigned by
either party without the prior, written consent of the other party.

               (b) This Agreement shall extend to and be binding upon any successor (whether direct or
indirect, by purchase, merger, consolidation, liquidation or otherwise) to all or substantially all
of the business and/or assets of Rowan. Additionally, Rowan shall require any such successor by
written agreement to expressly assume and agree to perform all of the obligations of Rowan under
this Agreement upon or prior to such succession taking place. A copy of such assumption and
agreement shall be delivered to you promptly after its execution by the successor. As used in this
Agreement, “Rowan” shall have the meaning ascribed to it in the first paragraph of this Agreement
and, except in determining under Item A.8.E of the Attachment whether or not any “Change in
Control” has occurred, shall include any successor to its business or assets as aforesaid, whether
or not such successor executes and delivers the agreement provided for in this Section 12(b).
Failure of Rowan to obtain such agreement prior to the effectiveness of any such succession shall
be a breach of this Agreement, but shall not adversely affect your rights under this Agreement as
to either Rowan or the successor.

               (c) This Agreement is personal to you and you may not assign or transfer any part of your
rights or duties hereunder, or any amounts due to you hereunder, to any other person, except that
this Agreement shall inure to the benefit of and be enforceable by your personal or legal
representatives, executors, administrators, heirs, distributes, devises, legatees or beneficiaries
to the extent applicable.

          13. Waiver and Release. In consideration of Rowan’s agreement to provide the benefits,
payments, and other items described in this Agreement, you hereby release and forever discharge the
Company, and its officers, directors, agents, servants, employees, successors, assigns, insurers,
employee benefit plans and fiduciaries, and any and all other persons, firms, organizations and
corporations, from any and all damages, losses, causes of action, expenses, costs (including
attorneys fees), demands, liabilities and claims on behalf of yourself, your heirs, executors,
administrators and assigns, of any kind or nature whatsoever,

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known or unknown, suspected or
unsuspected, contingent or matured (“Claims”), which you at any time heretofore had or claimed to
have or which you at any time hereafter may have or claim to have, whether arising out of tort,
strict liability, misrepresentation, violation of any regulation or law, or any cause whatsoever,
including, without limitation, Claims based on Texas common
law, Claims based on the Age Discrimination in Employment Act or any other federal or state
discrimination statutes, or any and all Claims in any manner related to your employment with and/or
separation from the Company, and including, without limitation Claims caused by or attributable to
the sole, partial, and/or comparative negligence, fault or strict liability of the Company.
Further, by accepting the payments described in this Agreement, you agree not to sue the Company or
the related persons and entities described above with respect to any matters released hereunder.

          Notwithstanding the foregoing release and discharge, you shall retain all rights to (i)
indemnity, contribution, and directors and officers and other liability coverage that you may have
under any statute, the articles and bylaws of Rowan or by any other agreement, including the
Indemnification Agreement by and between Rowan and you dated March 7, 2005 and as in effect on the
Separation Date; (ii) bring a lawsuit to enforce the Rowan’s obligations under this Agreement;
(iii) file a complaint with, providing information to, or testifying or otherwise assisting in any
investigation or proceeding brought by any state, federal or local regulatory or law enforcement
agency or legislative body (but you expressly waive any right to collect any damages or other
personal recovery in such a proceeding), or (iv) file any Claims that are not permitted to be
waived or released under the Fair Labor Standards Act or under the express provisions of any other
applicable law.

          You shall have 21 days to decide whether to sign this Agreement. After you have signed this
Agreement, you may revoke the Agreement within seven days after you have signed it by delivering a
written notification to me. You have notified Rowan that you have consulted an attorney about the
meaning and contents of this Agreement, including the release contained herein. You acknowledge
that you have read this Agreement, have had an opportunity to ask questions and have it explained
to you and that you understand that the Agreement will have the effect of knowingly and voluntarily
waiving any action you might pursue, including breach of contract, personal injury, retaliation,
discrimination on the basis of race, age, sex, national origin or disability and any other claims
arising prior to the date of the Agreement.

          14. Modification; Waiver. No provision of this Agreement may be modified, waived or
discharged unless such waiver, modification or discharge is agreed to in a writing signed by you
and such director or officer as may be specifically designated by the Board. Waiver by any party
of any breach of or failure to comply with any provision of this Agreement by the other party shall
not be construed as, or constitute, a continuing waiver of such provision, or a waiver of any other
breach of, or failure to comply with, any other provision of this Agreement.

          15. Notice. All notices, requests, demands and other communications required or permitted to
be given by either party to the other party by this Agreement shall be in writing and shall be
deemed to have been duly given when delivered personally or received by

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certified or registered
mail, return receipt requested, postage prepaid, a the address of the other party, as follows:

          If to Rowan, to:

Rowan Companies, Inc.

2800 Post Oak Boulevard, Suite 5450

Houston, Texas 77056

Attention: Board of Directors and Secretary

If to you, to:

D. F. McNease

          16. Severability. If any term or provision of this Agreement or the application thereof to
any person or circumstance shall to any extent be invalid or unenforceable, the remainder of this
Agreement or the application of such term or provision to persons or circumstances other than those
as to which it is held invalid or unenforceable shall not be affected thereby, and each term and
provision of this Agreement shall be valid and enforceable to the fullest extent permitted by law.

          17. Headings. The headings in this Agreement are inserted for convenience of reference only
and shall not be a part of or control or affect the meaning of this Agreement.

          18. General Provisions. This Agreement shall be governed by and interpreted under the laws of
the State of Texas applicable to contracts entered into and performed solely in the State of Texas.
Rowan and you agree that all disputes concerning this Agreement shall be arbitrated in Houston,
Texas pursuant to the American Arbitration Association’s National Rules for the Resolution of
Employment Disputes. The award of the arbitrator shall be final and binding and shall be
enforceable in a court of competent jurisdiction.

	 	 	 	 	 
	 	Very truly yours,

 	 
	 	/s/ W. H. Wells
 	 
	 	W. H. Wells 	 
	 	Vice President - Finance and CFO 	 
	 

AGREED TO, ACCEPTED, and EFFECTIVE

   This 31st day of October, 2008

/s/ D. F. McNease
 

D. F. McNease

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Attachment to the Agreement dated October 31, 2008

Special Note Regarding Internal Revenue Code Section 409A

          Notwithstanding any provision of this Agreement, if the payment of any amounts or benefits
under this Agreement or any plan of deferred compensation would be subject to additional taxes and
interest under Section 409A of the Code because the timing of such payment is not delayed as
provided in Code Section 409A(a)(2)(B), then any such payments that you would otherwise be entitled
to during the first six months following your Separation Date shall not be paid within such period
but shall instead be accumulated and paid in a lump-sum, with interest credited at the Applicable
Federal Rate as in effect on your Separation Date, on the date that is six months and one day after
your Separation Date (or if such payment date does not fall on a business day of Rowan, the next
following business day of Rowan), or such earlier date upon which such amount can be paid under
Code Section 409A without being subject to such additional taxes and interest. It is the intent of
Rowan and you that the provisions of this Agreement comply with Code Section 409A, and all
provisions of this Agreement shall be construed and interpreted in a manner consistent with the
requirements for avoiding taxes or penalties under Code Section 409A and any terms (defined or
otherwise) shall use the definition of such terms contained in Code Section 409A to the extent
applicable. In addition, “Separation Date” shall have the meaning of “Separation from Service” as
defined in Code Section 409A.

          Each payment or benefit provided under this Plan, including each payment under Items A.1 and
A.2 below shall be considered a separate payment for purposes of Code Section 409A.

          All reimbursements and in-kind benefits provided pursuant to this Agreement shall be made in
accordance with Treasury Regulation Section 1.409A-3(i)(1)(iv) such that any reimbursements or
in-kind benefits will be deemed payable at a specified time or on a fixed schedule relative to a
permissible payment event. Specifically, (i) the amounts reimbursed and in-kind benefits provided
under this Agreement, other than with respect to medical benefits provided under Items A.6 and B.2
below, during your taxable year may not affect the amounts reimbursed or in-kind benefits provided
in any other taxable year, (ii) except as otherwise provided in this Agreement, the reimbursement
of an eligible expense shall be made on or before the last day of your taxable year following the
taxable year in which the expense was incurred, and (iii) the right to reimbursement or an in-kind
benefit is not subject to liquidation or exchange for another benefit. Except as otherwise
provided in this Agreement, no reimbursement under this Agreement which is subject to the
requirements of Code Section 409A shall be made after the later of (i) the fifth anniversary of the
date of your death or (ii) the date that is 10 years from the Separation Date.

          Neither you nor any of your creditors shall have the right to subject any deferred
compensation (within the meaning of Code Section 409A) payable under this Agreement to any
anticipation, alienation, sale, transfer, assignment, pledge, encumbrance, attachment or
garnishment.

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          The items described under Item A. below are conditioned upon your execution and return to
Rowan of this Agreement within 21 days of receipt and not revoking it during the seven-day period
after execution and return. The items described under Item B. below are provided regardless of
your execution of this Agreement. Except as specifically described in this Attachment to the
Agreement, all other benefits and perquisites will cease as of your Separation Date.

Item A: Subject to Execution and Non-Revocation of this Agreement

1. Consulting

          Commencing with the later of (i) the first business day of the month following the expiration
of the seven-day revocation period described above and (ii) the first business day of January,
2009, you will receive 24 monthly cash payments of $50,000.00 as compensation for your consulting
services to Rowan. Each such monthly payment will be paid on the first business day of the
particular calendar month.

2. Severance

          Commencing with the later of (i) the first business day of the month following the expiration
of the seven-day revocation period described above and (ii) the first business day of January,
2009, you will receive an initial cash payment of $80,000.00, followed by 23 monthly cash payments
of $50,000.00, and then followed by 12 monthly cash payments of $100,000.00. Each such monthly
installment will be paid on the first business day of the particular calendar month and will be
subject to applicable withholding for income and employment taxes.

3. Profit Sharing Plan

          If profit sharing is paid in respect of 2008 under Rowan’s 2008 Profit Sharing Plan, you will
receive from Rowan, at the same time as other participants in the 2008 Profit Sharing Plan but not
later than March 15, 2009, a lump-sum amount in cash as provided for under the terms of the 2008
Profit Sharing Plan. Your eligibility for such payment is not conditioned on your employment on
the date of payment.

4. Bonus Plan

          If annual bonuses are paid in respect of 2008 under Rowan’s Bonus Plan, you will receive from
Rowan, at the same time as other participants in the Bonus Plan but not later than March 15, 2009,
a lump-sum amount in cash as determined by the Rowan Compensation Committee as provided for under
the terms of the Bonus Plan. Your eligibility for such payment is not conditioned on your
employment on the date of payment.

5. Long Term Incentive Plan

          A. Performance Shares

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          As of your Separation Date, you will be eligible to receive payments in respect of the
performance shares previously granted to you and outstanding as of your Separation Date, subject to
proration based on the number of days of your employment with Rowan during each respective
performance period, and payments with respect to such performance shares for the applicable
performance periods will be made as provided under Rowan’s 2005 Long-Term Incentive Plan and the
applicable performance share agreements. Such payments, if any, shall not be made in any event
later than March 15 of the calendar year following the calendar year in which the applicable
performance period ends.

          B. Stock Options

          As of your Separation Date, you will be fully vested in the Rowan stock options previously
granted to you and outstanding as of your Separation Date, and such options will remain outstanding
and exercisable, in each case, for the period after your Separation Date, as specified in the
following table, subject to the terms and provisions of the applicable stock option agreements
except as otherwise provided in this Agreement.

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	Additional	 	 	 	 
	 	 	 	 	 	 	Options Vested	 	Options Vested	 	 	 	 
	 	 	 	 	 	 	Prior to	 	on Separation	 	Total Options	 	Expiration
	Grant Date	 	Exercise Price	 	Separation Date	 	Date	 	Vested	 	Date of Option
	04.26.2001
	 	$	32.00	 	 	 	60,000	 	 	 	-0-	 	 	 	60,000	 	 	 	04.26.2011	 
	07.25.2002
	 	$	18.45	 	 	 	50,000	 	 	 	-0-	 	 	 	50,000	 	 	 	07.25.2012	 
	04.25.2003
	 	$	21.19	 	 	 	250,000	 	 	 	-0-	 	 	 	250,000	 	 	 	04.25.2013	 
	07.21.2004
	 	$	25.265	 	 	 	135,000	 	 	 	-0-	 	 	 	135,000	 	 	 	12.31.2013	 
	05.17.2005
	 	$	24.98	 	 	 	32,775	 	 	 	10,925	 	 	 	43,700	 	 	 	12.31.2013	 
	04.28.2006
	 	$	43.85	 	 	 	13,652	 	 	 	6,826	 	 	 	20,478	 	 	 	12.31.2013	 

          C. Restricted Stock

          As of your Separation Date, you will be fully vested in the shares of restricted stock
previously granted to you that are outstanding as of your Separation Date, and any related accrued
dividends, subject to the terms and provisions of the applicable restricted stock agreements except
as otherwise provided in this Agreement.

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Accrued
	 	 	 	 	 	 	Additional	 	 	 	 	 	Dividends
	 	 	Restricted Stock	 	Restricted Stock	 	Total Restricted	 	Vested on
	 	 	Vested Prior to	 	Vested on	 	Stock Vested on	 	Separation
	Grant Date	 	Separation Date	 	Separation Date	 	Separation Date	 	Date
	05.17.2005
	 	 	15,300	 	 	 	5,100	 	 	 	5,100	 	 	$	8,160.00	 
	04.28.2006
	 	 	-0-	 	 	 	9,880	 	 	 	9,880	 	 	 	10,868.00	 
	05.08.2007
	 	 	-0-	 	 	 	34,590	 	 	 	34,590	 	 	 	24,213.00	 
	04.11.2008
	 	 	-0-	 	 	 	25,806	 	 	 	25,806	 	 	 	7,741.80	 

11

 

6. Medical Coverage

          You (and your eligible dependents) will be provided group health coverage under The Group
Health and Life Insurance Plan of Rowan Companies, Inc. (or such group health plan as may be
maintained from time to time by the Company for benefit of retired Company executives) upon the
Separation Date, with such coverage to be provided on the same terms and conditions as provided
under such plan; provided, further, that upon your attainment of age sixty (60), you (and your
eligible dependents) will be provided health coverage under such plan (or such group health plan as
may be maintained from time to time by the Company to provide health coverage to retired Company
executives) as is then provided to Company executives who retire from the Company after the
attainment of age sixty (60), with such coverage to be provided on the same terms as available to
such retired executives under the terms of the plan as then in effect.

7. Club Membership

          Rowan will cease payments related to any club memberships on your behalf, effective December
31, 2008.

8. Parachute Tax Gross-Up

          You and Rowan do not believe that any of the amounts or benefits to be provided you pursuant
to this Agreement or otherwise are “parachute payments” (as defined below) and each agree to report
that such amounts and benefits are not “parachute payments” for federal income tax purposes.
Nevertheless, Rowan will provide you the following:

          A. If any payments or benefits received or to be received by you whether pursuant to the terms
of this Agreement or any other plan, arrangement or agreement with the Company, or with any Person
whose actions result in a Change in Control or any Person affiliated with the Company or such
Person (such payments or benefits, excluding the Gross-Up Payment, being hereinafter referred to as
the “Total Payments”) are subject to the Excise Tax, Rowan shall pay to you an additional amount
(the “Gross-Up Payment”) such that the net amount retained by you, after deduction of any Excise
Tax on the Total Payments and any federal, state and local income and employment taxes and Excise
Tax upon the Gross-Up Payment, shall be equal to the Total Payments.

          B. For purposes of determining whether any of the Total Payments will be subject to the Excise
Tax and the amount of such Excise Tax, (i) all of the Total Payments shall be treated as “parachute
payments” (within the meaning of Code Section 280G(b)(2)) unless, in the opinion of Rowan, such
payments or benefits (in whole or in part) do not constitute parachute payments, including by
reason of Code Section 280G(b)(4)(A), (ii) all “excess parachute payments” within the meaning of
Code Section 280G(b)(1) shall be treated as subject to the Excise Tax unless, in the opinion of
Rowan, such excess parachute payments (in whole or in part) represent reasonable compensation for
services actually rendered (within the meaning of

12

 

Code Section 280G(b)(4)(B)) in excess of the Base Amount allocable to such reasonable
compensation, or are otherwise not subject to the Excise Tax, and (iii) the value of any non-cash
benefits or any deferred payment or benefit shall be determined by Rowan in accordance with the
principles of Code Sections 280G(d)(3) and (4). Rowan and you agree that the determination
described in this Item A.8.B shall take the form of a letter from Rowan accompanied by calculations
prepared by a national accounting firm selected by Rowan (the “Accounting Firm”).

          C. The Gross-Up Payment (or portion thereof) will be paid to you on the day of the payment of
the Total Payments (or portion thereof) that give rise to the Excise Tax; provided, however, that
if the amount of such Gross-Up Payment (or a portion thereof) cannot be fully determined on or
before the date on which payment is due, Rowan will pay to you by such date an amount estimated in
good faith by the Accounting Firm to be the minimum amount of such Gross-Up Payment (or portion
thereof) and will pay the remainder of such Gross-Up Payment (or portion thereof) (together with
interest at the rate provided in Code Section 1274(b)(2)(B)) as soon as the amount thereof can be
determined, but in no event later than 45 days after complete payment of the Total Payments.
Further, in the event that on the day of payment of the Total Payments (or portion thereof) (or the
45-day period following such payments), no Gross-Up Payment (or portion thereof) is determined by
the Accounting Firm to be due and it is subsequently determined that a Gross-Up Payment (or portion
thereof) is owing to you, such Gross-Up Payment (or portion thereof) will be made by Rowan to you
at the date that such Gross-Up Payment amount (or portion thereof) is determined by the Accounting
Firm to be payable to you. Any Gross-Up Payment that you become entitled to receive will be paid
to you as provided in this Item A.8 and in any event not later than the last day of the calendar
year after the calendar year in which you remit the related taxes, or where as a result of an audit
or litigation no taxes are remitted, not later than the last day of the calendar year in which such
audit is completed or there is a final and nonappealable settlement or other resolution of the
litigation.

          D. In the event that the Excise Tax is finally determined to be less than the amount taken
into account hereunder in calculating the Gross-Up Payment, you shall repay to Rowan, within five
business days following the later of the date that the amount of such reduction in the Excise Tax
is fully determined and the date that such amount is fully refunded to you by the Internal Revenue
Service, the portion of the Gross-Up Payment attributable to such reduction (plus that portion of
the Gross-Up Payment attributable to the Excise Tax and federal, state and local income and
employment taxes imposed on the Gross-Up Payment) being repaid by you, to the extent that such
repayment results in a reduction in the Excise Tax and a dollar-for-dollar reduction in your
taxable income and wages for purposes of federal, state and local income and employment taxes. In
the event that the Excise Tax is determined to exceed the amount originally remitted by you which
was taken into account hereunder in calculating the Gross-Up Payment and you are obliged to remit
additional Excise Taxes, you shall provide Rowan with written notice advising as to the amount of
additional Excise Taxes which were so remitted and the date on which they were so remitted. As
soon as practicable following receipt of such notice (but not later than the end of the taxable
year following the year in which the additional Excise Taxes were remitted by you), Rowan shall
make an additional Gross-Up Payment in respect of such excess (plus any interest, penalties or
additions payable by you with

13

 

respect to such excess Excise Taxes). Rowan and you shall each reasonably cooperate with the
other in connection with any administrative or judicial proceedings concerning the existence or
amount of liability for Excise Tax with respect to the Total Payments.

          E. For purposes of this Item A.8, the following terms shall have the following meanings:

          “Affiliate” shall have the meaning set forth in Rule 12b-2 promulgated under Section 12 of the
Exchange Act.

          “Base Amount” shall have the meaning set forth in Code Section 280G(b)(3).

          “Change in Control” shall be deemed to have occurred if the event set forth in any one of the
following paragraphs shall have occurred:

     (I) any “person” (as defined in Section 3(a)(9) of the Exchange Act, and as modified in
Section 13(d) and 14(d) of the Exchange Act) other than (i) Rowan or any of its subsidiaries,
(ii) any employee benefit plan of Rowan or any of its subsidiaries, (iii) any Affiliate, (iv) a
company owned, directly or indirectly, by stockholders of Rowan in substantially the same
proportions as their ownership of Rowan or (v) an underwriter temporarily holding securities
pursuant to an offering of such securities (a “Person”), becomes the “beneficial owner” (as
defined in Rule 13d-3 of the Exchange Act), directly or indirectly, of securities of Rowan
representing more than 50% of the shares of voting stock of Rowan then outstanding; or

     (II) individuals who, as of the date this Agreement (the “Effective Date”), constitute the
Board (the “Incumbent Board”) cease for any reason to constitute at least a majority of the
Board; provided, however, that for purposes of this definition of Change in Control, any
individual becoming a director subsequent to the Effective Date whose election to the Board was
approved by a vote of at least a majority of the directors then comprising the Incumbent Board
shall be considered as though such individual were a member of the Incumbent Board, but
excluding, for this purpose, any such individual whose initial assumption of office occurs as a
result of an election contest with respect to the election or removal of directors or other
solicitation of proxies or consents by or on behalf of a person other than the Board; or

     (III) the consummation of any merger, reorganization, business combination or consolidation
of Rowan or one of its subsidiaries (a “Business Combination”) with or into any other entity,
other than a merger, reorganization, business combination or consolidation which would result in
(i) the holders of the voting securities of Rowan outstanding immediately prior thereto holding
securities which represent immediately after such merger, reorganization, business combination
or consolidation more than 50% of the combined voting power of the voting securities of Rowan or
the surviving company or the parent of such surviving company or (ii) at least a majority of the
members of the board of directors of the corporation, or the similar managing body of a
non-corporate entity, resulting from such Business Combination were members of the Incumbent
Board at the time of the execution of

14

 

the initial agreement, or of the action of the Board, providing for such Business Combination;
or

     (IV) the consummation of a sale or disposition by Rowan of all or substantially all of
Rowan’s assets, other than (i) a sale or disposition if the holders of the voting securities of
Rowan outstanding immediately prior thereto hold securities immediately thereafter which
represent more than 50% of the combined voting power of the voting securities of the acquirer,
or parent of the acquirer, of such assets or (ii) at least a majority of the members of the
board of directors of the corporation, or the similar managing body of a non-corporate entity,
resulting from such sale or disposition were members of the Incumbent Board at the time of the
execution of the initial agreement, or of the action of the Board, providing for such sale or
disposition; or

     (V) the stockholders of Rowan approve a plan of complete liquidation or dissolution of
Rowan.

          “Excise Tax” shall mean any excise tax imposed under Code Section 4999.

          “Person” shall have the meaning given in Section 3(a)(9) of the Exchange Act, as modified and
used in Sections 13(d) and 14(d) thereof, except that such term shall not include (i) Rowan or any
of its subsidiaries, (ii) a trustee or other fiduciary holding securities under an employee benefit
plan of Rowan or any of its Affiliates, (iii) an underwriter temporarily holding securities
pursuant to an offering of such securities, or (iv) a corporation owned, directly or indirectly, by
the stockholders of Rowan in substantially the same proportions as their ownership of the stock of
Rowan.

9. Debentures.

As of your Separation Date, you will be considered as if you had terminated employment by reason of
“Retirement” under the 1998 Convertible Debenture Incentive Plan.

15

 

Item B: Not Subject to Execution of this Agreement

1. Vacation and Sick Pay

          On the 35th day after your Separation Date, you will receive a cash lump sum, subject to
applicable withholding for income and employment taxes, for all of your accrued, but unused,
vacation and sick pay days through your Separation Date.

2. Medical and Dental Coverage

          Rowan will provide you continued medical and dental benefits following your Separation Date on
the terms and conditions as required by the Consolidated Omnibus Budget Reconciliation Act of 1985
(“COBRA”), as currently embodied in Code Section 4980B.

3. Life Insurance and AD&D

          Life insurance, including that provided under Rowan’s Supplemental Life Insurance Plan, and
AD&D, will cease as of your Separation Date. You will have a 31-day period thereafter to exercise
the conversion options for life insurance according to the terms and conditions in effect at that
time. It will be your responsibility to complete the conversion process if you so desire.

4. STD/LTD 

          Short-term and long-term disability coverage will cease as of your Separation Date.

5. Qualified and Supplemental Retirement Plan Benefits

          Your participation in the Rowan Companies, Inc. Savings and Investment Plan, the Rowan Pension
Plan, and the Pension Benefit Restoration Plan of Rowan Companies, Inc. (the “Retirement Plans”)
will cease as of your Separation Date. You will be entitled to your vested Retirement Plan
benefits as provided under the terms of each of the Retirement Plans.

16

 

EXHIBIT A

Effective as of December 31, 2008, I do hereby resign from any and all positions I hold at Rowan
Companies, Inc. and each of its subsidiaries, including each of the following:

	 	 	 
	Rowan Companies, Inc.

	 	Chairman, President and CEO;
member of the Executive Committee
of the Board
	 
	 	 
	Aberuchill Ltd.

	 	Chairman of the Board and President
	 
	 	 
	Atlantic Maritime Services, Inc.

	 	Chairman of the Board and President
	 
	 	 
	British American Offshore Limited

	 	Chairman of the Board and President
	 
	 	 
	LeTourneau Technologies, Inc.

	 	Chairman of the Board
	 
	 	 
	LeTourneau Technologies America, Inc.

	 	Chairman of the Board
	 
	 	 
	LeTourneau Technologies Asia Pte. Ltd.

	 	Chairman of the Board and President
	 
	 	 
	LeTourneau Technologies (Australia) Pty. Ltd.

	 	Director
	 
	 	 
	LeTourneau Technologies Brazil, Inc.

	 	Chairman of the Board
	 
	 	 
	LeTourneau Technologies Canada Ltd.

	 	Director
	 
	 	 
	LeTourneau Technologies Drilling Systems, Inc.

	 	Chairman of the Board
	 
	 	 
	LeTourneau Technologies International, Inc.

	 	Chairman of the Board
	 
	 	 
	LeTourneau Technologies South America, Inc.

	 	Chairman of the Board
	 
	 	 
	RCI Drilling International, Inc. (Cayman Islands)

	 	Chairman of the Board and President
	 
	 	 
	RCI International, Inc. (Cayman Islands)

	 	Chairman of the Board and President
	 
	 	 
	RDC Arabia Drilling, Inc.

	 	Chairman of the Board and President
	 
	 	 
	RDC Drilling, Ltd.

	 	Director
	 
	 	 
	RDC Drilling International, Inc. (Cayman Islands)

	 	Chairman of the Board and President
	 
	 	 
	RDC International, Inc. (Cayman Islands)

	 	Chairman of the Board and President
	 
	 	 
	RDC Marine, Inc.

	 	Chairman of the Board and President
	 
	 	 
	RDC Qatar, Inc.

	 	Chairman of the Board and President
	 
	 	 
	Rowan 240C#3, Inc. (Cayman Islands)

	 	Chairman of the Board and President
	 
	 	 
	Rowan 240C#4, Inc. (Cayman Islands)

	 	Chairman of the Board and President
	 
	 	 
	Rowan Canada Limited

	 	Chairman of the Board and President
	 
	 	 
	Rowan Drilling & Aviation (Netherlands) B.V.

	 	Chairman of the Board and President
	 
	 	 
	Rowan Drilling Company, Inc.

	 	Chairman of the Board
	 
	 	 
	Rowan Drilling (U.K.) Ltd.

	 	Chairman of the Board
	 
	 	 
	Rowan Energy Investments, Inc.

	 	Director and President
	 
	 	 
	Rowan Finance Company

	 	Chairman of the Board and President
	 
	 	 
	Rowan International, Inc.

	 	Chairman of the Board and President

17

 

	 	 	 
	Rowan International (Gabon), Inc. (in process of
being dissolved)

	 	Vice President
	 
	 	 
	Rowan Marine Drilling, Inc.

	 	Chairman of the Board and President
	 
	 	 
	Rowan Marine Services, Inc.

	 	Chairman of the Board and President
	 
	 	 
	Rowan Middle East, Inc. (Cayman Islands)

	 	Chairman of the Board and President
	 
	 	 
	Rowan North Sea, Inc. (Cayman Islands)

	 	Chairman of the Board and President
	 
	 	 
	Rowan Petroleum, Inc.

	 	Chairman of the Board
	 
	 	 
	Rowandrill, Inc.

	 	Chairman of the Board and President
	 
	 	 
	Rowan S116E#1, Inc. (Cayman Islands)

	 	Chairman of the Board and President
	 
	 	 
	Rowan S116E#2, Inc. (Cayman Islands)

	 	Chairman of the Board and President
	 
	 	 
	Rowan S116E#3, Inc. (Cayman Islands)

	 	Chairman of the Board and President
	 
	 	 
	Rowan S116E#4, Inc. (Cayman Islands)

	 	Chairman of the Board and President

	 	 	 	 	 
	 	 	 
	 	                                              /s/ D. F. McNease
 	 
	 	D. F. McNease 	 
	 	
Dated: October 31, 2008 	 
	 

18exv10w1

Exhibit 10.1

AMENDMENT NO. 1 TO SETTLEMENT AND LICENSE AGREEMENT

AMONG RAMBUS INC. AND QIMONDA AG

This AMENDMENT NO. 1 TO PATENT LICENSE AGREEMENT (“Amendment No. 1”) is effective as of this 8th of
July 2008 (“Amendment No. 1 Effective Date”) and entered into by and between Rambus Inc., a
corporation duly organized and existing under the laws of Delaware, U.S.A., having its principal
place of business at 4440 El Camino Real, Los Altos, California 94022, U.S.A., (hereinafter
“Rambus”) and Qimonda AG, a German corporation, having a principal place of business at
Gustav-Heinemann-Ring 212, 81739 Munich, Germany (hereinafter “Qimonda”).

WHEREAS, on March 18, 2005, Rambus entered into that certain Settlement and License Agreement with
Infineon Technologies AG, Infineon Technologies North America Corp., and Infineon Technologies
Holding North America Inc. (collectively, “Infineon”) (the “Patent License Agreement”) pursuant to
which Rambus and Infineon agreed to settle certain disputes and court actions relating to certain
memory products and memory interface technologies, to grant mutual releases with respect to past
activities giving rise to such disputes and court actions and to grant the other licenses under
certain patents with respect to memory products and memory interface technologies;

WHEREAS, on or about October 10, 2006, pursuant to Section 9.1 of the Patent License Agreement,
Rambus received notice of and consented to the assignment by Infineon Technologies AG, on behalf of
itself and Infineon Technologies North America Corp. and Infineon Technologies Holding North
America Inc. of the Patent License Agreement to Qimonda AG; and

WHEREAS, Rambus and Qimonda now desire to amend and clarify certain provisions of the Patent
License Agreement for the mutual benefit of each of the parties;

NOW, THEREFORE, in consideration of the mutual covenants and promises made between the parties and
other valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the
parties agree as follows:

1. Definitions

Except as otherwise defined in this Amendment No. 1, all initially capitalized terms used herein
shall have the respective meanings assigned to such terms in the Patent License Agreement.

2. Amendments to Patent License Agreement

	 	2.1	 	References to Infineon. Effective as of May 1, 2006, and except as
specifically set forth herein, all references to “Infineon” in the Patent License
Agreement (other than as set forth under Section 1.2 and Section 3.3 of the

 

			
	[***]	 	Confidential treatment has been requested for the bracketed portions. The confidential
redacted portion has been omitted and filed separately with the Securities and Exchange Commission.

-1-

 

	 	 	 	Agreement as
amended by this Amendment No.1 ) are hereby replaced with “Qimonda.”

	 	2.2	 	Section 1.1. Effective as of the Amendment No. 1 Effective Date, the terms
of Section 1.1 are hereby replaced in their entirety with the following:
	 
	 	 	 	“Affiliate. The term “Affiliate” means any entity controlling, under common
control with, or controlled by, a party. The term “control” means the possession,
directly or indirectly, of the power to direct or cause the direction of management or
policies (whether through ownership of securities, partnership or other ownership
interests, by contract or otherwise), provided that, in any event, any entity that owns
or holds, directly or indirectly, more than fifty percent (50%) of the voting
securities, partnership or other equity interests of any other entity (or is a general
partner or managing member of any other entity), will be deemed to control such other
entity. An entity shall only be deemed to be an Affiliate of any other entity for so
long as such “control” exists.”
	 
	 	2.3	 	Section 1.4. Effective as of the Amendment No. 1 Effective Date, the terms
of Section 1.4 are hereby replaced in their entirety with the following:
	 
	 	 	 	“Licensed Rambus Patents. The term “Licensed Rambus Patents” means all
patents, utility models, and patent applications, in all countries of the world having
a first effective filing date, in any country in the world, prior to March 18, 2005
including, without limitation, all reissuances, continuations, continuations-in-part,
revisions, extensions and reexaminations thereof, and any patents and patent
applications related thereto, filed or issued in any country of the world, that were
owned or controlled by Rambus or any of its Affiliates on March 18, 2005 (and patents
that may issue thereon) to the extent Rambus or its Affiliates was entitled to grant
licenses thereunder without the payment of fees to any third party (other than to
current or former employees for inventions made by such employees while employed by (i)
Rambus or (ii) the third party from whom Rambus acquired the respective patent).”
	 
	 	2.4	 	Section 1.5. Effective as of the Amendment No. 1 Effective Date, the terms
of Section 1.5 are hereby replaced in their entirety with the following:
	 
	 	 	 	“Qimonda Patents. The term “Qimonda Patents” means (i) all patents, utility
models, and patent applications, in all countries of the world having a first effective
filing date, in any country in the world, prior to March 18, 2005, including, without
limitation, all reissuances, continuations, continuations-in-part, revisions,
extensions and reexaminations thereof, and any patents and patent applications related
thereto, filed or issued in any country of the world, that were owned or controlled by
Infineon or any of its Affiliates on March 18, 2005 (and patents that may issue
thereon, and irrespective whether Infineon or Qimonda continues to own such patents) to
the extent Infineon or its Affiliates was entitled to grant licenses thereunder without
the payment of

 

			
	[***]	 	Confidential treatment has been requested for the bracketed portions. The confidential
redacted portion has been omitted and filed separately with the Securities and Exchange Commission.

-2-

 

	 	 	 	fees to any third party (other than to current or former employees for
inventions made by such employees while employed by (i) Infineon or (ii) the third
party from whom Infineon acquired the respective patent). Qimonda Patents shall not
include any patents, utility models, and patent applications, in all countries of the
world, pertaining to semiconductor manufacturing or testing technology.”

	 	2.5	 	Section 1.8. Effective as of the Amendment No. 1 Effective Date, the terms
of Section 1.8 are hereby replaced in their entirety with the following:
	 
	 	 	 	“Memory IC. The term “Memory IC” means any semiconductor memory device, or
equivalent, having information storage as its primary function and that is not capable
of performing any substantial data processing that is not related to information
storage, retrieval, or error correction, including but not limited to SDR SDRAM, DDR
SDRAM, DDR2 SDRAM, DDR3 SDRAM, GDDR2 DRAM, GDDR3 DRAM, RLDRAM, RLDRAM2, RDRAM, XDR
DRAM, Cellular RAM, low power DRAM, SRAM, Non-Volatile Memory and any subsequent
generation of any such products.”
	 
	 	2.6	 	Section 1.14. Effective as of the Amendment No. 1 Effective Date, the terms
of Section 1.14 are hereby replaced in their entirety with the following:
	 
	 	 	 	“Change of Control. The term “Change of Control of Qimonda means a transaction
or a series of related transactions:

	 	(i)	 	(1) in which any individual, entity or “group” (as described in Rule
13d-5(b) promulgated under the Securities and Exchange Act of 1934, as amended)
(“Acquirer”) acquires “control” of Qimonda (where control has the meaning set
forth in the definition of the term “Affiliate”), unless such Acquirer already had
control of Qimonda immediately before such transaction(s); or
	 
	 	 	 	(2) in which Qimonda is merged or consolidated with or into another entity,
including by way of triangular merger, where, the holders of Qimonda’s voting
securities (or other similar ownership interest granting the power to direct or
cause the direction of management or policies) prior to such transaction do not
hold more than 50% of the voting securities (or other ownership interest granting
the power to direct or cause the direction of management or policies) of the
surviving entity or any entity that controls the surviving entity, or
	 
	 	 	 	(3) resulting in the transfer or sale, either directly or indirectly, of all or
substantially all of the assets of the DRAM business of Qimonda to any entity that,
immediately before such transaction(s), is not an Affiliate of Qimonda and does not
simultaneously upon such transfer or sale become a Subsidiary of Qimonda, and where
Qimonda is not merged or consolidated with or into another entity as described
under Section 1.14(i)(2) above; or

 

			
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redacted portion has been omitted and filed separately with the Securities and Exchange Commission.

-3-

 

	 	 	 	(4) the “execution” of any binding agreement which provides for any of
the foregoing described in Section 1.14(i)(1) through (3) where “execution” means
(i) the Change of Control unconditionally occurs upon the full execution of such
binding agreement, or (ii) where the Change of Control does not occur as described
in the preceding subsection (i), the fulfillment, or waiver, of the conditions that
are required for the Change of Control to occur or otherwise come into effect; or
	 
	 	(ii)	 	in which Qimonda or any of its Affiliates acquires ownership or
“control” (where control has the meaning set forth in the definition of the term
“Affiliate”) of, by merger, acquisition of securities or assets, joint venture,
business combination or otherwise, all or substantially all the business or assets
of a Memory Unit (as defined hereinbelow). For this purpose, a “Memory Unit” means
(A) any entity that manufactures (or has manufactured) and sells Memory ICs, or
(B) any division (or other business unit) of an entity, which division (or other
business unit) manufactures (or has manufactured) and sells Memory ICs and is
responsible for all or substantially all of such Memory IC manufacturing (or
having manufactured) and sales of the entity.

	 	 	 	To the extent any Change of Control under Section 1.14(ii) above results in any of the
outcomes of a Change of Control under Section 1.14(i) above, such Change of Control
shall be deemed to be Change of Control under Section 1.14(i) above.”

	 	2.7	 	Section 1.15. Effective as of the Amendment No. 1 Effective Date, Article 1
of the Patent License Agreement is hereby amended to include the following new definition
as Section 1.15:
	 
	 	 	 	“Non-Volatile Memory. The term “Non-Volatile Memory” means any semiconductor
memory device, or equivalent, having information storage as its primary function and
that is not capable of performing any substantial data processing that is not related
to information storage, retrieval, or error correction that can retain information
stored on such memory device, or equivalent, without electrical power to such device,
including, but not limited to, flash, MRAM, FRAM, ROM, PROM, EPROM, EEPROM and any
subsequent generation of any such products.”
	 
	 	2.8	 	Section 1.16. Effective as of the Amendment No. 1 Effective Date, Article 1
of the Patent License Agreement is hereby amended to include the following new definition
as Section 1.16:
	 
	 	 	 	“Semiconductor Memory Design. The term “Semiconductor Memory Design” means any
form of human or machine readable representation (e.g., circuit reference design,
design databases, etc.) for, all or substantially all of, any entire (i) semiconductor
memory device, (ii) mechanical, optical, electronic or other form of interconnect
designed to connect such

 

			
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redacted portion has been omitted and filed separately with the Securities and Exchange Commission.

-4-

 

	 	 	 	semiconductor memory device to other devices and/or (iii)
packaging for such semiconductor memory device.”
	 
	 	2.9	 	Section 1.17. Effective as of the Amendment No. 1 Effective Date, Article 1
of the Patent License Agreement is hereby amended to include the following new definition
as Section 1.17:
	 
	 	 	 	“Rambus Proprietary Semiconductor Memory Design. The term “Rambus Proprietary
Semiconductor Memory Design” means a Semiconductor Memory Design:

     (A) (1) first disclosed, designed and implemented by or for Rambus or (2) acquired
by Rambus from a third party (e.g. as part a merger or an acquisition of some or all of
the assets and/or business of such third party) and first disclosed, designed and
implemented (i) by or for Rambus or (ii) by or for such third party, and

     (B) where Rambus licenses such Semiconductor Memory Design for a separate fee as
part of its general technology licensing business and where such licenses include
documentation, know-how and technical support and further, where the products
implementing such Semiconductor Memory Design are generally excluded from the scope
Rambus’ patent license agreements.

	 	 	 	Examples of Rambus Proprietary Semiconductor Memory Designs are RDRAM, XDR, XDR2 and
Rambus’ low power memory interface currently marketed as “Velora”. Whether a
Semiconductor Memory Design constitutes a Rambus Proprietary Semiconductor Memory
Design shall be based, in addition to the criteria above, on whether the level of
contribution by Rambus, or, if acquired by Rambus from a third party, by such third
party, is comparable to RDRAM, XDR, XDR2 and/or Velora.
	 
	 	2.10	 	Section 1.18. Effective as of the Amendment No. 1 Effective Date, Article 1
of the Patent License Agreement is hereby amended to include the following new definition
as Section 1.18:
	 
	 	 	 	“Excluded Entity. The term “Excluded Entity” means [***], and any and all
Affiliates of the foregoing (or a successor to all or substantially all of the assets
and liabilities of any such entity or its Affiliates).”
	 
	 	2.11	 	Section 1.19. Effective as of the Amendment No. 1 Effective Date, Article 1
of the Patent License Agreement is hereby amended to include the following new definition
as Section 1.19:
	 
	 	 	 	“Subsidiary. The term “Subsidiary” means any entity that is controlled by
another entity (where control has the meaning set forth in the definition of the term
“Affiliate”).”

 

			
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	 	2.12	 	Section 2.4. Effective as of the Amendment No. 1 Effective Date, the terms
of Section 2.4 of the Patent License Agreement are hereby replaced in their
entirety with the following:
	 
	 	 	 	“During and for each calendar quarter that Rambus receives payments from Qimonda
towards the First Cap, Second Cap and/or Final Cap (as such terms are defined in
Sections 6.2, 6.3 and 6.4, respectively), but in any event, at least for the period of
[***], Rambus and its Affiliates hereby grant to Qimonda and its Affiliates a
nonexclusive, world-wide, irrevocable license (without the right to grant sublicenses),
of the same scope as per Section 2.2, under all patents and patent applications, other
than Licensed Rambus Patents, including, without limitation, all reissuances,
continuations, continuations-in-part, revisions, extensions and reexaminations thereof,
filed or issued in any country of the world, that are owned or controlled by Rambus or
any of its Affiliates now or hereafter (and patents that may issue thereon) to the
extent Rambus or its Affiliates are entitled to grant licenses thereunder without the
payment of fees to any third party (other than to current or former employees for
inventions made by such employees while employed by (i) Rambus or (ii) the third party
from whom Rambus acquired the respective patent) (“Term License”). At the expiration of
each Term License Period set forth in this Section 2.4, and subject to Article 3, the
Term License granted under this Section 2.4 shall automatically terminate.”
	 
	 	2.13	 	Article 3. Effective as of the Amendment No. 1 Effective Date, the
provisions of Article 3 are hereby replaced in their entirety with the following:

	 	 	 	“3.1 Most Favored Licensee. Upon request by Qimonda, Qimonda and its
Affiliates shall be entitled to obtain and Rambus shall grant an additional license of
the same scope as per Section 2.4, at the then applicable most favored license terms
and conditions (“Most Favored Term License”). Qimonda may request such Most Favored
Term License within [***] (the “MFL Option Period’). If Qimonda does not request such
Most Favored Term License within the MFL Option Period, Rambus shall have no further
obligation under this Section 3.1. To the extent there [***], all amounts paid under
the Most Favored Term License [***].
	 
	 	 	 	The terms of this Section 3.1 shall automatically and immediately terminate upon any
Change of Control of Qimonda as defined under Section 1.14(i) where any of the Prior
Entities (as defined in Section 9.4, per alternative (i) of such definition) is an
Excluded Entity, provided that if the Most Favored Term License is in full force and
effect at the time of such Change of Control, such Most Favored Term License shall
survive such Change of Control.
	 
	 	 	 	3.2 Supplemental Term License. Notwithstanding the terms of Section 2.4 above,
provided Qimonda is not in breach of its payment obligations under this Agreement, if
during any period [***], the Term License under Section 2.4 above, according to its
terms, has terminated (each such period referred to

 

			
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	 	 	 	as a “Supplemental Term License
Period”), whether due to [***], Rambus and its Affiliates agree to grant, and do hereby
grant, Qimonda and its Affiliates, a
license of the same scope as per Section 2.4 during any period that constitutes a
Supplemental Term License Period, provided that such license shall (i) subject to the
last sentence of this paragraph, [***] and (ii) automatically and immediately terminate
upon a Change of Control of Qimonda as defined in Section 1.14(i) where any of the
Prior Entities (as defined in Section 9.4, per alternative (i) of such definition) is
an Excluded Entity that does not have a Prior Entities License Agreement (as defined in
Section 9.4) and [***]. The [***] acquired from a third party shall apply (i) only if
[***] and (ii) solely to those [***].
	 
	 	 	 	3.3. Additional License to Non-Infineon Licensed Products. Further, upon
request of Infineon, Infineon and its Affiliates shall be entitled to obtain and Rambus
shall grant to Infineon and its Affiliates a license under any patents, utility models,
and patent applications, including, without limitation, all reissuances, continuations,
continuations-in-part, revisions, extensions and reexaminations thereof, filed or
issued in any country of the world, that are owned or controlled by Rambus or any of
its Affiliates now or hereafter (and patents that may issue thereon) to the extent
Rambus or its Affiliates is entitled to grant licenses thereunder without the payment
of fees to any third party (other than to current or former employees for inventions
made by such employees while employed by (i) Rambus or (ii) the third party from whom
Rambus acquired the respective patent), for [***] at the then applicable most favored
licensee terms and conditions. Pursuant to Infineon Technologies AG’s notice of
assignment of this Agreement to Qimonda AG effective as of March 18, 2006, Infineon has
retained the foregoing right for itself and the foregoing right shall not apply to
Qimonda AG or any successor in interest to Qimonda AG.”
	 
	 	2.14	 	Section 6.3. Effective as of the Amendment No. 1 Effective Date, the terms
of Sections 6.3 of the Patent License Agreement are hereby amended by adding the following
clause as the last sentence of Section 6.3:
	 
	 	 	 	“Notwithstanding the foregoing, the release of any Excluded Entity from any patent
infringement claims under patents other than Licensed Rambus Patents (“Term License
Patents”) as described above shall apply solely to the making, having made, using,
selling, offering to sell, importing or otherwise transferring of Licensed Products
after the date of the Change of Control pursuant to which such Excluded Entity became
subject to the terms and conditions of this Agreement. In addition, if, in connection
with any such Change of Control, Rambus opts [***], any release under the Term License
Patents shall apply solely to that portion of products made, have made, used, sold,
offered for sale, imported or otherwise transferred equal to the [***]. For example,
if (1)(i) there is a Change of Control pursuant to Section 1.14(i) where any of the
Prior Entities is an Excluded Entity, (ii) Rambus opts [***],

 

			
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	 	 	 	(iii) the [***], and (iv)
subsequent to such Change of Control the Successor Entity and its Affiliates [***] that
would otherwise meet the definition of
licensed products under Section 1.6, then only [***] of such products would be subject
to the release described in this Section 6.3.
	 
	 	2.15	 	Section 6.4. Effective as of the Amendment No. 1 Effective Date, the terms
of Sections 6.4 of the Patent License Agreement are hereby amended by adding the following
clause as the last sentence of Section 6.4:
	 
	 	 	 	“Notwithstanding the foregoing, the release of any Excluded Entity from any patent
infringement claims under patents other than Licensed Rambus Patents (“Term License
Patents”) as described above shall apply solely to the making, having made, using,
selling, offering to sell, importing or otherwise transferring of Licensed Products
after the date of the Change of Control pursuant to which such Excluded Entity became
subject to the terms and conditions of this Agreement. In addition, if, in connection
with any such Change of Control, Rambus opts [***], any release under the Term License
Patents shall apply solely to that portion of products made, have made, used, sold,
offered for sale, imported or otherwise transferred equal to the [***]. For example,
if (1)(i) there is a Change of Control pursuant to Section 1.14(i) where any of the
Prior Entities is an Excluded Entity, (ii) Rambus opts [***], (iii) the [***], and (iv)
subsequent to such Change of Control the Successor Entity and its Affiliates [***] that
would otherwise meet the definition of licensed products under Section 1.6, then only
[***] of such products would be subject to the release described in this Section 6.4.
	 
	 	2.16	 	Article 8. Effective as of the Amendment No. 1 Effective Date, the terms of
Article 8 of the Patent License Agreement are hereby replaced in their entirety with the
following:
	 
	 	 	 	“Any notice or other communication required or permitted to be made or given to either
party pursuant to this Agreement shall be sufficiently made or given within fifteen
(15) days of the date of mailing if sent to such party by registered first class mail
or internationally accepted courier service, postage prepaid, addressed to such party
at the address set forth below, or to such other address as a party shall designate by
written notice given to the other party:

 

			
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In the case of Qimonda:

Qimonda AG

Legal Department

Gustav-Heinemann-Ring 123

81739 Munich

Germany

(with a copy, which shall not constitute notice, to the following:)

Qimonda AG

Alliances (SBD AL)

Gustav-Heinemann-Ring 212

81739 Munich

Germany

In the case of Rambus:

Rambus Inc.

General Counsel, Legal Department

4440 El Camino Real

Los Altos, CA 94022

U.S.A.

(with a copy, which shall not constitute notice, to the following:)

Rambus Inc.

S.V.P, Sales, Licensing and Marketing

4440 El Camino Real

Los Altos, CA 94022

U.S.A

	 	2.17	 	Section 9.1. Effective as of the Amendment No. 1 Effective Date, the terms of
Section 9.1 of the Patent License Agreement are hereby replaced in their entirety with the
following:
	 
	 	 	 	“Assignment by Qimonda. Except as provided in this Section 9.1 and as provided
in Section 9.4 below, Qimonda may [***], it being understood that [***] (as defined
below) shall be deemed to be reasonable. Notwithstanding the foregoing, and subject to
Section 9.4, [***]:

	 	(a)	 	to any entity that is [***]; and
	 
	 	(b)	 	to any entity that is [***] in connection with the [***]; upon any
such [***], and

 

			
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	 	(c)	 	to a [***], and [***] hereby agrees to [***], in a transaction
entered into [***].

	 	 	 	As a condition to any such assignment under this Section 9.1, the assignee of the
Agreement shall agree in writing to be bound by all the terms and conditions of this
Agreement, including, without limitation, all of Qimonda’s payment obligations pursuant
to this Agreement. Further, if any such assignment is made by virtue of a Change of
Control of Qimonda (1) as defined in Section 1.14(i), then [***], and (2) as defined in
Section 1.14(ii),
then [***]. For the avoidance of any doubt, any permitted assignment under [***],
unless simultaneously [***], in which case such [***].
	 
	 	 	 	The [***] set forth in [***] shall be granted, extended and/or transferred to the
assignee only in compliance with the provisions of [***].
	 
	 	 	 	It is understood and agreed that, subject to the terms of this Agreement, upon any
assignment of this Agreement by Qimonda, all references to “Qimonda” in the body of
this Agreement (except Section 1.2 and Section 3.3) shall be deemed to be references to
the successor and/or assignee to this Agreement, including without limitation the
references to “Qimonda” in Sections 1.6 and 1.7.
	 
	 	 	 	For purposes of this Section, [***] means any legal entity [***].”
	 
	 	2.18	 	Section 9.4. Effective as of the Amendment No. 1 Effective Date, the terms of
Section 9.4 of the Patent License Agreement are hereby replaced in their entirety with the
following:
	 
	 	 	 	“Change of Control of Qimonda. For the purpose of this Section 9.4:
	 
	 	 	 	“[***] Sales” shall mean the worldwide value in U.S. dollars of sales, transfers and
other distributions of [***].
	 
	 	 	 	“Qimonda” means Qimonda and its Affiliates.
	 
	 	 	 	“[***]” means the type of [***], during the last [***] preceding the effective date of
the [***], had the [***] as published by Gartner-Dataquest (or its successor) [***] for
the last period of at least [***] for which such statistic was so published by
Gartner-Dataquest (or its successor).
	 
	 	 	 	“Successor Entity” means the entity resulting from a Change of Control.
	 
	 	 	 	“Prior Entities” means all of the entities (including without limitation companies and
business units of companies) that, (i) after the Change of Control, comprise the
Successor Entity, and their Affiliates, as such entities and their Affiliates existed
immediately preceding the Change of Control, but excluding Qimonda as they existed
immediately preceding the Change of

 

			
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	 	 	 	Control or (ii) are otherwise acquired by Qimonda
during the term of this Agreement.
	 
	 	 	 	“Prior Entities License Agreement” means an agreement, if any, pursuant to which, as of
the effective moment of the Change of Control, any of the Prior Entities is licensed by
Rambus to make, use, and sell one or more types of [***] (“Prior Entities Licensed
DRAMs”), provided that one of the Prior Entities Licensed DRAMs is the [***].
	 
	 	 	 	“Memory Product” means any (i) Memory IC, (ii) Memory Module, (iii) Memory
Portion; and/or (iv) any component of a Memory Module other than a Memory IC, provided
such component is marketed by such legal entity and its Affiliates solely to facilitate
the functions of a Memory Module.

	 	(a)	 	Change of Control of Qimonda pursuant to Section 1.14(i).

	 	(i)	 	No Prior Entities License Agreement.

	 	a.	 	Non-Excluded Entities. If there is
no [***] with respect to any [***], then, subject to [***] below,
upon a [***], the payment obligations under this Agreement shall be
[***] immediately preceding [***] immediately preceding [***].
	 
	 	 	 	For example [***] prior to [***] and [***] had already paid [***],
then the payment obligations prior to the [***] as per (1) above [***]
as per (2) above [***], then the following adjustment shall apply: the
[***] following the [***] shall be [***].
	 
	 	b.	 	Excluded Entities. If in a Change
of Control of Qimonda pursuant to Section 1.14(i) any of the Prior
Entities is an Excluded Entity that does not have a Prior Entities
License Agreement, Rambus shall have the option [***]. If Rambus
opts [***], (i) then following such Change of Control, the rights and
licenses granted hereunder shall apply solely, on a forward going
basis, to that percentage (the “Licensed Product Percentage”) of the
Successor Entity’s (and its Affiliates’) Memory Products equal to the
ratio between (1) [***] (as defined below) [***] in the last [***]
immediately preceding such Change of Control (“Qimonda Revenue”) and
(2) the [***] (as defined below) in the last [***] immediately
preceding such Change of Control attributable to [***].
	 
	 	 	 	For example, if the [***] during the [***] preceding such Change of
Control was [***] and the [***] during the [***] preceding such Change
of Control was [***], the Licensed Product Percentage would be equal
to [***].

 

			
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	 	 	 	For purposes of calculating the Licensed Product Percentage, the term
[***] means the [***], or if not available, the [***] as listed by
[***].
	 
	 	c.	 	Licensed Product Percentage. The
Licensed Product Percentage referred to above shall be equally spread
and applied on a product-by-product and country-by-country basis, and
any relief sought by Rambus with respect to any Successor
Entity’s (or its Affiliates’) Memory Product that meets the definition
of a licensed product under Section 1.6 above shall [***]; provided
that on a world wide basis Rambus shall not be entitled to [***] if
such [***] on a world-wide basis.
	 
	 	 	 	For example, if the Licensed Product Percentage was [***], and if,
following such Change of Control, [***] of a particular Successor
Entity’s (or its Affiliates’) Memory Product that meets the definition
of a licensed product under Section 1.6 above were [***] would be
licensed pursuant to this Agreement in the United States, and Rambus
shall be free to exercise any and all rights and remedies it may have
at law, equity or otherwise with respect to the [***] of such Memory
Products, provided that Rambus may [***], for example in the [***] but
not for the [***].
	 
	 	d.	 	Reservation of Rights. The parties
understand and agree that the foregoing license in Section
9.4(a)(i)b. and c. above to each and every Successor Entity (and its
Affiliates) with respect to Memory Products following a Change of
Control pursuant to Section 1.14(i) is based on [***], after such
Change of Control. In no case shall the existence of such license
constitute, be construed as, or otherwise raised or relied on as
Rambus’ intent or desire to grant a license to any products other
than the Licensed Product Percentage of a Successor Entity’s (and its
Affiliates’) Memory Products that meet the definition of licensed
products under Section 1.6 of this Agreement. No sales of any
products made by any Excluded Entities that is a Prior Entity in any
Change of Control of Qimonda as defined under Section 1.14(i) prior
to such Change of Control shall be deemed to be licensed under this
Agreement or subject to any of the releases or dismissals granted
under Sections 4.1(a) and 4.1(b). Any and all Memory Products of
each Successor Entity (and its Affiliates) that do not constitute the
Licensed Product Percentage are expressly excluded from this
Agreement and Rambus retains all of its rights and remedies under
law, in equity or otherwise with respect to any and all products (i)
sold by any Excluded Entity prior to any such Change of Control

 

			
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	 	 	 	and/or (ii) that do not constitute the Licensed Product Percentage
sold by the Successor Entity (and its Affiliates) after such Change
of Control.
	 
	 	 	 	Without limiting the generality of the foregoing, and for the
avoidance of any doubt, Rambus opting not to adjust the payment
obligations as described above, shall not constitute, be construed or
otherwise argued as a waiver or compromise by
Rambus with respect to any remedies available at law, in equity or
otherwise with respect to any and all products (i) sold by any
Excluded Entity prior to any such Change of Control and/or (ii) that
do not constitute the Licensed Product Percentage sold by the
Successor Entity (and its Affiliates) after such Change of Control.

	 	(ii)	 	Existing Prior Entities License Agreement.

	 	a.	 	Negotiated Adjustment. If there is
a [***], then upon a Change of Control of Qimonda pursuant to Section
1.14(i), Rambus and the Successor Entity shall negotiate, diligently
and in good faith, an appropriate [***] under this Agreement
resulting from such Change of Control pursuant to Section 1.14(i).
If within [***] after the [***].
	 
	 	b.	 	Arbitrated Adjustment Principles.
The parties shall negotiate, and the arbitrator shall render his
decision, considering that it is the intent of the parties that:

	 	i.	 	Distribution of a [***] should
not obligate the [***] to [***] under both [***] above and
under the terms of the [***].
	 
	 	ii.	 	If, after the effective date of
the Change of Control, no [***] is the [***] then,
prospectively, [***] shall apply to [***].
	 
	 	iii.	 	Rambus should be able to [***],
with respect [***], to the extent such [***] that would be
payable if there were no [***]. The extent of such benefits
shall be determined, according to the [***]
	 
	 	iv.	 	Rambus should not receive [***]
than if there were no [***].
	 
	 	 	 	(For example, [***] provided for payment to Rambus of [***] for
the right to make and sell up to [***], then Rambus would retain
this [***], but there would be [***]

 

			
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	 	 	 	of the [***]. By way of
further example, if [***] contained [***].

	 	(b)	 	Change of Control of Qimonda pursuant to Section 1.14(ii).

	 	(i)	 	[***] Agreement.
	 
	 	 	 	If there is [***] Agreement with respect to [***], then upon a
Change of Control of Qimonda pursuant to Section 1.14(ii), the [***] shall
[***] of (1) the [***] in the last [***] preceding such Change of Control
and (2) [***] in the [***] immediately preceding such Change of Control.
	 
	 	 	 	For example if [***] prior to such Change of Control was [***] and the
[***] was [***] and [***] had already [***], then the [***] prior to such
Change of Control was [***]. If further, [***] as per (1) above were
[***], and the [***] as per (2) above were [***], then the following
[***].
	 
	 	(ii)	 	[***] Agreement.

	 	a.	 	[***]. If there is [***]
Agreement, then upon a Change of Control of Qimonda pursuant to
Section 1.14(ii), Rambus and the Successor Entity shall negotiate,
diligently and in good faith, an appropriate [***] under this
Agreement resulting from such Change of Control pursuant to Section
1.14(ii). If within [***] after the [***].
	 
	 	b.	 	Arbitrated Adjustment Principles.
The parties shall negotiate, and the arbitrator shall render his
decision, considering that it is the intent of the parties that:

	 	i.	 	Distribution of a [***] should
not obligate the [***] to [***] under both [***] above and
under the terms of the [***].
	 
	 	ii.	 	If, after the effective date of
the Change of Control, no [***] is the [***] then,
prospectively, [***] shall apply to determine the proper
adjustment.
	 
	 	iii.	 	Rambus should be able to [***],
with respect [***], to the extent such [***] that would be
payable if there were no [***]. The extent of such benefits
shall be determined, according to the [***].
	 
	 	iv.	 	Rambus should not receive a
[***] than if there were no [***].

 

			
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	 	 	 	(For example, if the [***] provided for payment to Rambus of [***]
for the right to make and sell up to [***], then Rambus would
retain [***], but there would be [***] of the [***]. By way of
further example, if [***] contained [***].

	 	(c)	 	Excluded [***]. Notwithstanding the terms of [***] above, no
[***]
under such section shall be made with respect to the [***] (as defined below)
acquired by Qimonda pursuant to a Change of Control of Qimonda as defined in
Section 1.14(ii) [***] shall mean [***].

	 	(i)	 	Conditions. The [***] shall apply solely to [***].
The [***] shall not apply to [***]. For the avoidance of doubt, the [***]
used in the [***] shall [***]. If (X) [***], (Y) such [***], and (Z) the
right [***], then upon Qimonda’s request therefor, Rambus agrees to discuss in
good faith with Qimonda, for a period of [***] after receipt of such request,
whether any [***] of this Agreement should be made based on the [***].
	 
	 	(ii)	 	[***]. To the extent any [***] include any [***] (as
defined below), the provisions of [***] shall apply to such [***] based on
such [***], provided that with respect to [***], such [***] shall apply solely
to [***]. For purposes of this Section 9.4(c)(ii), the term [***]. For
example, if [***] during the [***] preceding the date of [***].
	 
	 	(iii)	 	[***]. Upon the [***] eligible for the [***] to any
Excluded Entity [***] by such Excluded Entities shall [***].
	 
	 	 	 	For the avoidance of doubt, [***] an Excluded Entity of a [***] as part of
or in connection with a [***] by such Excluded Entity, including, but not
limited to, the [***], shall not be deemed to be a [***].
	 
	 	(iv)	 	[***]. If [***], Rambus agrees to [***], and Qimonda
and Rambus shall negotiate in good faith the terms of, [***] during the [***]
(as defined below) that [***]. For purposes of this Section 9.4(c)(iv), the
term [***] means the [***]. The [***] shall provide that Rambus shall [***]
with respect to [***] with respect to [***], provided further, that [***] at
all with respect to [***], Rambus must have [***]. The [***] shall also
provide that (i) Rambus shall [***],(ii) pursuit of [***], and (iii) Rambus
shall [***].
	 
	 	(v)	 	Termination. The [***] shall automatically and
immediately terminate upon (1) a Change of Control of Qimonda as defined in
Section 1.14(i) where any Prior Entities is an Excluded Entity or

 

			
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	 	 	 	Other Entity
or (2) upon assignment of this Agreement pursuant to Section 9.1(b) where the
transaction is treated as a Change of Control of Qimonda under Section 1.14(i)
and the assignee or any Affiliate of the assignee is an Excluded Entity or
Other Entity [***]. For the avoidance of doubt, the [***], if Qimonda has
[***].

	 	(d)	 	Interest on Late Payments.  Any late payments resulting from
negotiations pursuant to Section 9.4(a)(ii) or 9.4(b)(ii) and/or arbitration
pursuant to
Section 9.7 shall bear interest at the rate of twelve per cent (12%) (or, if less,
the maximum allowed by applicable law) per year, from the date that such payment
would otherwise have been due.
	 
	 	(e)	 	Successor Entity and Agreement. It is understood and agreed
that, subject to the terms of this Agreement, upon any [***] in which [***] is
merged into a successor, all references to [***] in the body of this Agreement
[***] shall be deemed to be references to the [***], including without limitation
the references to [***] in [***]. For the avoidance of any doubt, this Agreement
shall be [***] upon a [***], provided that this Agreement shall be deemed to be
[***].
	 
	 	(f)	 	Use of Agreement. Upon any Change of Control of Qimonda
where any of the Prior Entities is an Excluded Entity, each and every Successor
Entity from any such Change of Control shall not, and irrevocably waives as a
condition to its assumption, or the assignment, of this Agreement the right to
raise, rely, enter into evidence, make reference to or otherwise use the terms or
the existence of this Agreement to the prejudice of Rambus, whether in support of
an affirmative defense, claim, counterclaim or otherwise, in any legal or
equitable action, investigation, proceeding, settlement discussions, arbitration,
mediation or any other form of dispute resolution, with respect to (i) [***] or
(ii) the determination, calculation or basis for [***] or (z) any products [***].
For the avoidance of any doubt, the restrictions set forth in this Section shall
apply to any and all Affiliates of each and every Successor Entity. For the
avoidance of any doubt, except as expressly set forth above, nothing in this
Section 9.4(f) shall be argued, deemed to be or construed as a restriction on the
right of Qimonda or any Successor Entity (or any of its Affiliates) to otherwise
raise, rely, enter into evidence, make reference to or otherwise use the terms or
the existence of this Agreement, whether in support of an affirmative defense,
claim, counterclaim or otherwise, in any legal or equitable action, investigation,
proceeding, settlement discussions, arbitration, mediation or any other form of
dispute resolution, including, without limitation, in order to prove a license
defense with respect to any product or activity that is licensed or permitted
under this Agreement or the [***].

	 	2.19	 	Section 9.6. Effective as of the Amendment No. 1 Effective Date, the terms
of Section 9.6 of the Patent License Agreement are hereby replaced in their entirety with
the following:

 

			
	[***]	 	Confidential treatment has been requested for the bracketed portions. The confidential
redacted portion has been omitted and filed separately with the Securities and Exchange Commission.

-16-

 

	 	 	 	“Limited Extension of Releases. Notwithstanding anything to the contrary
contained in this Agreement, the [***] set forth in [***] shall be granted, extended
and/or transferred to [***].
	 
	 	 	 	For purposes of this Section 9.6, [***] shall have the meaning ascribed to them in
[***] above, and further:
	 
	 	 	 	“Financial Entity” means any legal entity, the primary business of which is to
engage in financial or investment transactions (including, without limitation, banks,
investment companies, private equity companies, venture capital companies, insurance
companies and pensions trusts), where such legal entity and its Affiliates do not
constitute an Other Entity or an Excluded Entity.
	 
	 	 	 	“Other Entity” means any legal entity where such legal entity and its
Affiliates do not constitute an Excluded Entity or a Financial Entity.

	 	(a)	 	[***] None of the [***] set forth in [***] shall be granted,
extended and/or transferred to any [***], except in any such Change of Control
where [***].
	 
	 	(b)	 	[***] The [***] set forth [***] shall be granted, extended
and/or transferred to [***] as follows:

	 	(i)	 	[***] If there has been [***] prior to a [***], then,
upon a [***], the [***] set forth in [***] shall be granted, extended and/or
transferred to the [***].
	 
	 	(ii)	 	[***] If there has been [***] prior to a [***] the
[***] set forth in [***] shall be granted, extended and/or transferred to
[***] as follows:

	 	a.	 	Financial Entity. If all [***]
occurring prior to a [***] as defined in [***] constituted Financial
Entities, then the [***] set forth in [***] shall be granted,
extended and/or transferred to the [***].
	 
	 	b.	 	Other Entity. Subject to [***]
below, if any [***] occurring prior to a [***] constituted an Other
Entity, then the [***] set forth in [***] shall be granted, extended
and/or transferred [***] and [***] shall be granted, extended and/or
transferred [***].
	 
	 	c.	 	Excluded Entities. If any [***]
occurring prior to a [***] constituted an Excluded Entity, then [***]
set forth under [***] shall be granted, extended and/or transferred
to [***].

	 	(iii)	 	The extension of the [***] as described in this Section
9.6(b) to any [***] shall [***] where (i) the primary purpose of such

 

			
	[***]	 	Confidential treatment has been requested for the bracketed portions. The confidential
redacted portion has been omitted and filed separately with the Securities and Exchange Commission.

-17-

 

	 	 	 	transaction is to [***] and where such transaction is [***] or (ii) such
transaction is [***].

	 	(c)	 	Excluded Entities. If any [***], then the [***] set forth in
[***] may only be granted, extended and/or transferred pursuant to [***] only if,
[***] have been previously granted, extended and/or transferred under this
Agreement to any other [***]. For the avoidance of any doubt, the granting,
extension and/or transfer of any of the [***] set forth in [***] shall apply solely
to [***] and [***] to the extent [***].

	 	(d)	 	[***]. Upon a [***], to the extent any of the [***] granted
in [***] are extended to any such [***], such [***] shall include any activity
prior to such [***] of any such [***] related to any of the type of claims
referred to in [***], but shall [***].
	 
	 	 	 	Further, any such extension of the [***] granted in [***] pursuant to [***] shall
be conditioned on any such [***].

3. No Other Amendments

Except as set forth in Section 2 of this Amendment No. 1, all of the other provisions of the Patent
License Agreement shall remain in full force and effect without modification. The terms of Article
10, and Sections 12.1 up to and including 12.12, and Section 12.14 of the Patent License Agreement
are hereby incorporated in their entirety by this reference, provided that, all references therein
to “this Agreement” shall be deemed to be references to this Amendment No. 1. In the event of any
inconsistency or conflict, the provisions of this Amendment No. 1 shall control and govern over the
provisions of the Patent License Agreement. The Patent License Agreement, together with the
amendments made to the Patent License Agreement as set forth in this Amendment No. 1, shall
constitute a single, integrated agreement.

IN WITNESS WHEREOF, the parties hereto have caused this Amendment No. 1 to be signed by duly
authorized officers or representatives as of the date set forth below.

	 	 	 	 	 	 	 	 	 	 
	RAMBUS INC.	 	QIMONDA AG
	 
	 	 	 	 	 	 	 	 
	By:

	 	/s/ Sharon Holt
	 	 	 	By:
	 	/s/ Thomas Seifert
	 

	 	 
	 	 	 	 	 	 
	 

	 	Name: Sharon Holt

Title:   SVP, Sales, Licensing & Marketing

Date: July 8, 2008
	 	 	 	 	 	Name: Thomas Seifert

Title:   Chief Operating Officer

Date: July 10, 2008

 

			
	[***]	 	Confidential treatment has been requested for the bracketed portions. The confidential
redacted portion has been omitted and filed separately with the Securities and Exchange Commission.

-18-

 

	 	 	 	 	 
	 	QIMONDA AG

 	 
	 	By:  	/s/ Robert Feurle
 	 
	 	 	Name:  	Robert Feurle 	 
	 	 	Title: 	VP BU Specialty DRAM
	 
	 	 	Date:  July 9, 2008 

 

			
	[***]	 	Confidential treatment has been requested for the bracketed portions. The confidential
redacted portion has been omitted and filed separately with the Securities and Exchange Commission.

-19-

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