AMD 2000 Annual Report Download - page 114

WHEN TO EXERCISE
It is entirely your decision when to exercise vested options, keeping in mind
the expiration date for your options. (See the sections Exercising Stock Options
and When You Leave AMD.)
The timing of an exercise and/or sale can have a large impact on any value you
ultimately obtain from the option. In deciding when to exercise, you may wish to
consult with your financial advisor, stockbroker, or reputable publications in
which stock market analysts voice their opinions about future potential stock
values. It is also prudent to consult with a tax advisor to determine the impact
of exercising stock options on your tax obligations. In some countries (for
example, the United Kingdom), favorable tax treatment may apply if you hold tax-
qualified stock options for a certain period after the date of grant or the date
on which you last exercised options.
TAXES
AMD is required by law to report all stock option transactions to both the U.S.
and foreign tax authorities. Tax regulations on stock options and selling shares
of a foreign company can be complex. In most countries, you owe no taxes when
your stock option grant is approved. However, you may be liable for taxes on the
gain you receive upon exercising your options. (The "gain" is the difference
between the market value of the shares of AMD common stock on your exercise date
and the exercise price of your options.) In certain countries you may owe taxes
when you become vested in your options, even if you do not purchase them. In
addition, when you sell your shares of AMD stock, any profit that you receive
(the difference between the sale price and the market price on your exercise
date) is subject to your country's tax requirements. We recommend that you
consult with a tax advisor to determine your potential tax obligations.
Withholding tax requirements vary by country. You are responsible for notifying
your local office when you exercise your options. Your local office will advise
if tax withholding is required and how you can satisfy this requirement.
QUALIFIED OR NON-QUALIFIED STOCK OPTIONS
Unless you are an employee in the U.K., your stock options are "non-qualified"
options. Most stock options for U.K. employees are granted from a qualified
stock option scheme. However, some U.K. employees have received or will receive
non-qualified stock options either because the market value of all their
outstanding stock options exceed the aggregate value allowed under a qualified
scheme, or because the grants are/were made from a non-qualified scheme or were
repriced. Contact Treasury Services if you are unsure whether you hold qualified
or non-qualified U.K. stock options.
Source: ADVANCED MICRO DEVIC, 10-K405, March 20, 2001