AMD 2007 Annual Report Download - page 189

(c) Each Participant’s Account, which is initially divided into his Deferral Account and Company Compensation Account, shall be segregated into
separate subaccounts for Grandfathered Benefits and 409A Benefits, each of which shall be accounted for separately.
(1) Grandfathered Benefits shall be credited into a subaccount with that portion of a Participant’s Deferral Account and Company Contribution
Account, as applicable, which was 100% vested as of December 31, 2004.
(2) The subaccount attributable to 409A Benefits shall be credited with that portion of a Participant’s Deferral Account and Company
Contribution Account, as applicable, which was not vested as of December 31, 2004, and with all subsequent amounts credited to the
Participant’s Individual Account for Plan Years beginning on and after January 1, 2005. For each subaccount holding 409A Benefits, the
Committee shall establish a separate subaccount for each Plan Year beginning on and after January 1, 2005, to which shall be credited the
total of the Participant’s Deferrals and Company Compensation for the applicable Plan Year.
4.2 Investment of Account. The Committee shall credit allocable earnings and losses to each Participant’s Individual Account according to the hypothetical
investments made by a Participant pursuant to the terms of Article V.
4.3 Allocation of Net Income or Loss and Changes in Value.
(a) As of each Valuation Date, the Committee shall determine the fair market value and net income (net loss) of each Investment Fund for the period
elapsed since the immediately preceding Valuation Date. The net income (or net loss) of each Investment Fund since the immediately preceding
Valuation Date shall be ascertained by the Committee in such manner as it deems appropriate, which may include expenses, if any, of administering
the Investment Fund and the Plan.
(b) For purposes of crediting allocable net income (or net loss), each Participant’s Individual Account shall be divided into subaccounts to reflect the
hypothetical investment of such Participant’s Account in a particular Investment Fund or Investment Funds pursuant to Article V. As of each
Valuation Date, the net income (or net loss) of each Investment Fund, separately and respectively, shall be allocated among the corresponding
subaccounts of the Participants who had such corresponding subaccounts invested in such Investment Fund since the immediately preceding
Valuation Date, and each such corresponding subaccount shall be credited with (or debited for) that portion of such net income (or net loss) that the
value of each such corresponding subaccount on such immediately preceding Valuation Date was of the value of all such corresponding subaccounts
on such date; provided, however, that the value of such subaccounts as of the immediately preceding Valuation Date shall be reduced by the amount
of any distributions made therefrom since the immediately preceding Valuation Date.
(c) So long as there is a balance credited to any Account, such Account shall continue to share in earnings (or loss) allocations pursuant to this Section.
- 8-
Source: ADVANCED MICRO DEVIC, 10-K, February 26, 2008