AMD 2007 Annual Report Download - page 209

the then 30-day average of the 10-year Treasury Bill rate as the discount factor. Each actuary will independently choose a mortality assumption. That average
lump sum amount will be reduced by (i) the Actuarial Equivalent lump sum value of any accrued benefit you are entitled to receive from any AMD qualified or
nonqualified pension plan (not including income from your AMD Retirement Savings and Deferred Profit Sharing Plan account or Executive Investment
Account Plan), in the U.S. or elsewhere, and (ii) the benefit you received from the Motorola Pension Plan, adjusted for the time value of money. For purposes of
this calculation, your Motorola Pension Plan benefit is equal to $169,887 at December 31, 2001. That amount will be presumed to accumulate interest at the rate
of 3% per annum through the point of benefit determination.
The remaining amount is your Net Benefit under this Plan. (See example in Exhibit A to this Plan.)
Average Bonus Earned is calculated as follows:
1. For each of the eight full fiscal years immediately prior to the point of benefit determination, calculate the Cash Bonus Award paid or earned and payable
under any and all applicable bonus plan(s) as a percentage of that year’s actual earnings from salary.
2. Determine which five of the eight years produce the highest percentages.
3. Calculate the average percentage for those five years.
4. Apply that average percentage to your annualized salary at the point of benefit determination.
The amount so determined is the Average Bonus Earned.
B. Disability Income
If you become totally and permanently disabled prior to age 55, in accordance with AMD’s Executive Long Term Disability Plan, you will receive a disability
income payable through age 65, or until you are no longer disabled. The amount of the benefit under this Plan will then be the Normal Benefit determined as set
forth above, less the Actuarial Equivalent of any remaining disability payments you are entitled to receive under AMD’s Executive Long-Term Disability Plan.
Under this Plan, the Compensation Committee has the authority, using reasonable discretion, to determine whether you are totally and permanently disabled,
notwithstanding the determination of the administrator for the Executive Long Term Disability Plan.
C. Maximum Benefit
The Normal Benefit cannot exceed an amount equal to 70% of your annualized salary at the point of benefit determination.
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Source: ADVANCED MICRO DEVIC, 10-K, February 26, 2008