AMD 2007 Annual Report Download - page 210

When Benefits Are Paid
You will receive a lump sum benefit within six weeks of your attainment of age 55 (March 23, 2009), even though you may choose to retire after that date.
If you become permanently disabled prior to age 55, as defined under AMD’s Executive Long-Term Disability Plan, you will be eligible to receive the benefit
under this Plan in a lump sum at age 55.
If you have a “separation from service” from AMD within the meaning of Section 409A(a)(2)(A)(i) of the Internal Revenue Code of 1986, as amended (the
“Code”) (a “Separation from Service”) at any time prior to age 55 following a Change of Control, as that term is defined in your Management Continuity
Agreement with AMD, you will be paid a lump sum benefit within ten days following such Separation from Service in an amount that is the Actuarial Equivalent
of the amount you would have received had you remained an employee of AMD until age 55.
If you cease to be an officer of AMD, or to be employed by AMD for any reason other than disability or following a Change of Control before you attain age 55,
you willnot be eligible to receive any benefit under the Plan, unless you have attained age 54 and you have a Separation from Service for reasons other than for
Cause (as defined in your Management Continuity Agreement with AMD); and in that event, payment of a benefit will be contingent upon your entering into an
agreement with AMD within 10 days after such Separation from Service not to compete with AMD for a reasonable period of time to be determined by AMD.
Death Benefit
If you should die prior to attainment of age 55, your spouse will receive a lump sum benefit. If you have no spouse at the time of your death, there is no death
benefit.
The amount of the death benefit will be the lump sum value of your benefit (as calculated under the “Retirement Benefit” paragraph above, on the basis that you
had retired on the date of death, with a fully vested retirement benefit) less the amount of the death benefit you are entitled to at that time as an executive of
AMD (three times annual salary, to a maximum of $2,000,000, unless otherwise modified by AMD for all executives).
Tax Treatment for You
You will be taxed on the value of the benefit you receive under this Plan. The amount or amounts will be taxable in the year any payment is made.
In order to keep you from having substantial out-of-pocket costs due to taxes, AMD will increase your lump benefit payment(s) by the amount of your estimated
Federal and State Income Taxes. The amount of the increased payment(s) for taxes will be based on your marginal tax rate (not to exceed 40%) plus 1.45%
(Medicare) for Federal taxes and the highest bracket rate in your state of residence at retirement for state taxes. Refer to Exhibit B. Any such increase will be paid
to you no later than the last day of the tax year following the tax year in which you remit the related taxes to the appropriate tax authorities.
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Source: ADVANCED MICRO DEVIC, 10-K, February 26, 2008