AMD 2000 Annual Report Download - page 93

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. Pacific time.
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 exercise your options and purchase shares, unless you are doing
an E*TRADE OptionsLink sale. You are responsible for knowing which options can
be exercised and the expiration dates for your options. Detailed information
regarding the number of shares exercisable can be obtained 24 hours a day/7
days a week via the following:
. The internet at www.optionslink.com, or
. The OptionsLink interactive voice response system at 1-[phone].
Note: While you may look at your account information at any time through
OptionsLink, if you conduct an electronic transaction on the internet, then
E*Trade will act as your broker for that transaction and the net proceeds will
be deposited into your OptionsLink account (see the E*Trade OptionsLink brochure
for further details). If you wish to utilize a broker other than E*Trade, you
will have to contact that broker directly outside of the OptionsLink system.
For more details on exercising your options, please refer to the summary
entitled "Stock Option Exercise Procedures" which is available at
http://amdonline/treassvc.
There are four ways to exercise vested AMD options that have not expired:
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
plus applicable Federal, State, Social Security and Medicare tax withholding.
You must give Treasury Services a cashier's check or money order for the
exercise cost plus taxes within two weeks from the exercise date. You may elect
to receive either a stock certificate or have your shares electronically
transferred to your brokerage account.
Financing through a Broker (also known as "Same
Day Sale and Exercise")
You can contact any of AMD's designated brokers or you can do an electronic
trade through E*Trade (refer to the E*Trade OptionsLink brochure).
If you elect a "same day exercise and sale," you may:
. Sell all shares.
. Sell enough shares to cover the cost of the exercise and associated required
taxes. You will then receive the remaining shares from your exercise. This
option may not be available through E*Trade.
. 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 and associated required taxes, you must pay the balance through a
cashier's check or money order to Treasury Services on the next business day
following your exercise date. This option may not be available through
E*Trade.
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.
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Source: ADVANCED MICRO DEVIC, 10-K405, March 20, 2001