AMD 1995 Annual Report Download - page 23

suspension of production, alteration of the Corporation's manufacturing
processes or cessation of operations. Such regulations could require the
Corporation to acquire expensive remediation equipment or to incur other
expenses to comply with environmental regulations. (See Item 3, Legal
Proceedings, Number 1.) Any failure by the Corporation to control the use,
disposal or storage of, or adequately restrict the discharge of, hazardous
substances could subject the Corporation to future liabilities.
Key Personnel. AMD's future success depends in part upon the continued
service of its key engineering, sales, marketing and executive personnel in the
engineering design areas of AMD's activities. There can be no assurance that
AMD will be able to continue to attract and retain qualified personnel necessary
for the development and manufacture of its products. Loss of the service of, or
failure to recruit, key engineering design personnel could be significantly
detrimental to AMD's product development programs or otherwise have a material
adverse effect on AMD's business and operating results. AMD has an employment
agreement with W. J. Sanders III, its Chairman and Chief Executive Officer,
which obligates Mr. Sanders not to compete with the Company following a
termination of his employment under certain circumstances. AMD has no
employment or noncompetition agreements with any of its other officers,
directors or key employees except S. Atiq Raza and Vinod Dham who entered into
noncompetition agreements with AMD upon consummation of the Merger.
Product Defects; Incompatibility. One or more of AMD's products may
possibly be found to be defective after AMD has already shipped in volume,
requiring a production replacement, recall, or a software fix which would cure
such defect but impede performance. Product returns could impose substantial
costs on AMD and have a material adverse effect on AMD. For its future
generations of K86 microprocessors, AMD intends to obtain Windows and Windows 95
certifications from Microsoft Corporation (Microsoft), Platinum certification
from XXCAL, a testing organization, and other appropriate certifications. While
AMD submits its products to rigorous internal and external testing, there can be
no assurance that AMD's products
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Source: ADVANCED MICRO DEVIC, 10-K405, March 21, 1996