AMD 1993 Annual Report Download - page 341

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2. The Company's Security Interest.
The Company's security interest in the Policy is conditioned upon its
satisfactorily performing all of the covenants under this Agreement. Each
period covered by any individual premium payment described in Section 3 shall
be considered a discrete extension of the Company's security interest in the
Policy. The Company shall not have nor exercise any right in and to the Policy
which could, in any way, endanger, defeat, or impair any of the rights of
Employee in the Policy, including by way of illustration any right to collect
the proceeds of the Policy in excess of the amount due the Company as provided
in this Agreement and in the Policy. The only rights in and to the Policy
granted to the Company in this Agreement shall be limited to the Company's
security interest in and to the cash value of the Policy, as defined herein,
and a portion of the death benefit of the Policy as hereinafter provided (the
"Security Interest"). The Company shall not assign any of its Security
Interest in the Policy to anyone other than Employee.
3. Premium payments.
So long as Employee is employed by the Employer and the Company's
Security Interest has not been released, the Company agrees to pay premiums
under the Policy in an amount such that cumulative premiums (not counting the
initial three months' premiums) received by the first of each month are at
least equal to the cumulative "cost of term insurance" (as defined under the
Policy) from the first anniversary through the end of the third month of
coverage provided by the initial three months' premium. The premium payment
shall be transmitted directly by the Company to the Insurance Company.
Consistent with the preceding sentences, prior to the release of the Company's
Security Interest in the Policy, Employee and the Company agree that the
Company shall from time to time designate one or more individuals (the
"Designee"), who may be officers of the Company, who shall be entitled to
adjust the death benefit under the Policy and to administer the investments
under the Policy; provided, however, that the Designee may only increase, but
not decrease, the death benefit in effect on the date that the Policy is
issued; provided further, that the Designee may only direct the investments
under the Policies in funds offered by the Insurance Company under the Policy.
During the period of time that this Agreement is in effect, Employee
irrevocably agrees that all dividends paid on the Policy shall be applied to
purchase from the Insurance Company additional paid up life insurance on the
life of Employee.
4. Death of Employee while employed by Employer.
(a) If Employee dies prior to termination of employment with
Employer and prior to his or her Security Release Date (as defined in Section
10 below), Employee's designated beneficiary
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Source: ADVANCED MICRO DEVIC, 10-K, March 07, 1994