Summary
Advanced Micro Devices, Inc. (AMD) has filed a Form 8-K on August 21, 2008, to report on a material definitive agreement. The company entered into a First Amended and Restated Participation Agreement with International Business Machines Corp. (IBM) on August 15, 2008. This agreement supersedes previous development activities under an existing agreement and expands AMD's participation in additional joint development projects with IBM and other parties. The key takeaway for investors is the extension and expansion of a strategic R&D partnership with IBM. The agreement now extends to December 31, 2015, or the termination of all associated project agreements. AMD will incur quarterly development fees and certain license fees to IBM as part of this collaboration. The continuation of this agreement is subject to the approval of AMD's Board of Directors by September 15, 2008.
Key Highlights
- 1AMD entered into a First Amended and Restated Participation Agreement with IBM on August 15, 2008.
- 2The agreement supersedes prior development activities under an existing "S" Process Development Agreement.
- 3AMD will join additional Development Projects with IBM and other participating parties.
- 4The term of the agreement has been extended to December 31, 2015, or the termination of all Project Agreements.
- 5AMD will pay IBM quarterly development fees and certain license fees for background technology.
- 6The agreement's continuation is contingent upon AMD's Board of Directors' approval by September 15, 2008.
- 7Either party may terminate the agreement under specific circumstances, including insolvency or a Change of Control.