AMD 2001 Annual Report Download - page 190

Mr. Hector Ruiz
January 31, 2002
Page 13
(ii) AMD will pay and provide you with (A) the accrued
Retirement Benefit, (B) the Medical Benefits for your life and
the life of your spouse, (C) the Other Benefits, (D) the
Relocation Benefit, (E) the California Tax Payment pursuant to
Section 7(d); and
(iii) All of your AMD stock options shall vest and be fully
exercisable and the restrictions on all of your other AMD awards
shall immediately lapse and such awards shall become
nonforfeitable.
(f) Retirement. In the event of your Retirement:
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(i) you shall be entitled to an annual retirement benefit
payable monthly (the "Retirement Benefit") equal to (A) a
service-related percentage (the "Accrual Percentage") of the
average of one-twelfth (1/12) of your Annual Base Salary for the
three (3) years in which such amount was highest within the last
ten (10) years of the Employment Period less (B) the monthly
annuity equivalent of any benefit payable to you pursuant to (x)
AMD's tax-qualified defined benefit retirement plan and (y) any
nonqualified defined benefit retirement plan maintained by AMD in
which you participate (it is understood that there shall be no
reduction relating to amounts payable to you pursuant to the
Supplemental Agreement referred to in Section 14(g)). In
calculating the Retirement Benefit, your Accrual Percentage shall
be four percent (4%) for each of your first ten full years of
service with AMD. Notwithstanding the foregoing, (i) Annual Base
Salary shall not exceed $1,000,000, increased by a compound
annual rate of three percent (3%) from January 1, 2002 and (ii)
in the event payments are made or benefits are provided pursuant
to Section 10(e), you shall be credited with additional service
through April 26, 2007 but in no event will you be credited with
less than two (2) years of service credit.
The normal form of payment for the Retirement Benefit shall be a
life annuity, guaranteed for ten (10) years commencing the first
month after your sixty-fifth (65th) birthday. In lieu of the
normal form of payment, you may elect that, upon your death
(whether prior to or after commencement of the Retirement
Benefit), your surviving spouse shall be paid an annual benefit
of up to one hundred percent (100%) of the Retirement Benefit for
her life. If you make this election, the amount of the benefit
payable to you shall be actuarially reduced in the same manner as
any payments to you from AMD's tax-qualified defined benefit
retirement plan or, if no such tax-qualified plan is maintained
by AMD, such benefit shall be reduced consistent with the group
annuity mortality table and interest assumptions specified in the
General Agreement on Tariffs and Trade (GATT Agreement) as of the
date which is two (2) months prior to the date of election of the
alternate form of annuity.
Source: ADVANCED MICRO DEVIC, 10-K, March 07, 2002