AMD 2000 Annual Report Download - page 113

EXERCISING YOUR STOCK OPTIONS
Once your options are vested, you can exercise them-- that is, you can purchase
AMD common stock at the exercise price. You have a limited number of years from
the date of grant to exercise the options and take advantage of any increase in
the price of AMD stock above the exercise price. Most grants have a ten-year
life. The document for your stock option grant discloses the date on which your
options expire.
Your final opportunity to purchase your vested options is the last regular
business day of AMD before their expiration date. If you are waiting until that
last day, be sure that Treasury Services receives your completed Stock Option
Exercise form before 5:00 p.m. local time in Sunnyvale, California.
If you leave AMD before the expiration date for your options, you have a limited
period of time after your termination date in which to exercise vested options.
See the section When You Leave AMD.
Treasury Services must receive your completed Stock Option Exercise form in
order for you to purchase your options. You should review your annual stock
option statement before exercising your vested options. (See the section Annual
Statements.) You are responsible for knowing which options can be exercised and
the expiration dates for your options.
The following describes the different ways to purchase vested AMD options that
have not expired. However, some countries have currency exchange restrictions.
You should check if local laws restrict or prohibit your ability to purchase
your options with cash.
Cash Purchase
You can pay for the options yourself or arrange for your broker to pay for them.
On the next business day after receipt of your completed Stock Option Exercise
form, Treasury Services will notify you of the cost for the exercised options.
Within two weeks following the exercise date, Treasury Services must receive
from you either a certified check or bank wire for the exercise cost in U.S.
dollars. A stock certificate is issued to you usually within three weeks after
your payment is received by Treasury Services.
Financing through a Broker (also known as "Same Day Exercise and Sale")
You can contact one of AMD's designated brokers to buy shares of AMD stock at
the exercise price and sell them at market price on the same day. You must
submit a completed Stock Option Exercise form to Treasury Services on the same
day that you contact the broker.
If you elect a "same day exercise and sale," you may:
. Sell all of the shares from the exercised options. You will receive a check
from the sale of the shares minus the cost of the exercised options and the
broker's fee.
. Sell enough of the shares acquired through the exercise of the options (at the
market price) to cover the cost of exercising those options and the broker's
fee. You then receive the balance of the AMD shares obtained through
exercising the options.
. Sell only the number of shares you decide on and receive the balance of the
shares. If the shares sold do not cover all the costs of exercising the
options, you must pay the balance through sending a certified check or bank
wire to Treasury Services on the next business day following the exercise
date.
You also can finance your option exercise through the broker and hold the
acquired shares for a later sale. The shares will be registered to and sent to
the broker.
Stock Swap Exercise
You can use AMD shares you have owned at least six months to pay for the
exercise price of the options. To initiate a stock swap, you must complete and
submit a Share Withholding/Delivery Election form in addition to a Stock Option
Exercise form to Treasury Services. You may not pay the exercise price by
requesting that Treasury Services withhold some of the shares resulting from the
options being purchased.
Source: ADVANCED MICRO DEVIC, 10-K405, March 20, 2001