{"id":38464,"date":"2015-09-17T11:25:58","date_gmt":"2015-09-17T16:25:58","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-legal\/contracts\/uncategorized\/2011-executive-incentive-plan-advanced-micro-devices.html"},"modified":"2015-09-17T11:25:58","modified_gmt":"2015-09-17T16:25:58","slug":"2011-executive-incentive-plan-advanced-micro-devices","status":"publish","type":"corporate_contracts","link":"https:\/\/corporate.findlaw.com\/contracts\/compensation\/2011-executive-incentive-plan-advanced-micro-devices.html","title":{"rendered":"2011 Executive Incentive Plan &#8211; Advanced Micro Devices"},"content":{"rendered":"<p align=\"center\"><strong>Advanced Micro Devices, Inc. <\/strong><\/p>\n<\/p>\n<p align=\"center\"><strong>Executive Incentive Plan <\/strong><\/p>\n<p align=\"center\"><strong>(Approved by the Board of Directors on February 3,<br \/>\n2011) <\/strong><\/p>\n<p align=\"center\"><strong>(Approved by the Stockholders on May 3, 2011)<br \/>\n<\/strong><\/p>\n<\/p>\n<table style=\"border-collapse: collapse;\" width=\"100%\" cellpadding=\"0\" border=\"0\" cellspacing=\"0\">\n<tbody>\n<tr>\n<td width=\"4%\" valign=\"top\">\n<p>1.<\/p>\n<\/td>\n<td valign=\"top\"><u>Purposes<\/u><\/p>\n<p>.<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>The purposes of the Advanced Micro Devices, Inc. (&#8220;AMD&#8221;) Executive Incentive<br \/>\nPlan are to motivate the Company&#8217;s key employees to improve stockholder value by<br \/>\nlinking a portion of their cash compensation to the Company&#8217;s financial<br \/>\nperformance, reward key employees for improving the Company&#8217;s financial<br \/>\nperformance, and help attract and retain key employees. The Plan is intended to<br \/>\npermit the payment of bonuses that qualify as performance-based compensation<br \/>\nunder Section 162(m) of the Code.<\/p>\n<\/p>\n<table style=\"border-collapse: collapse;\" width=\"100%\" cellpadding=\"0\" border=\"0\" cellspacing=\"0\">\n<tbody>\n<tr>\n<td width=\"4%\" valign=\"top\">\n<p>2.<\/p>\n<\/td>\n<td valign=\"top\"><u>Definitions<\/u><\/p>\n<p>.<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>Wherever the following terms are used in the Plan they shall have the<br \/>\nmeanings specified below, unless the context clearly indicates otherwise.<\/p>\n<\/p>\n<table style=\"border-collapse: collapse;\" width=\"100%\" cellpadding=\"0\" border=\"0\" cellspacing=\"0\">\n<tbody>\n<tr>\n<td width=\"4%\"><\/td>\n<td width=\"4%\" valign=\"top\">\n<p>A.<\/p>\n<\/td>\n<td valign=\"top\">\n<p>&#8220;Award&#8221; means, with respect to each Participant, any cash incentive payment<br \/>\nmade under the Plan for a Performance Period, including Awards that qualify as<br \/>\nperformance-based compensation under Section 162(m) of the Code.<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<table style=\"border-collapse: collapse;\" width=\"100%\" cellpadding=\"0\" border=\"0\" cellspacing=\"0\">\n<tbody>\n<tr>\n<td width=\"4%\"><\/td>\n<td width=\"4%\" valign=\"top\">\n<p>B.<\/p>\n<\/td>\n<td valign=\"top\">\n<p>&#8220;Code&#8221; means the Internal Revenue Code of 1986, as amended.<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<table style=\"border-collapse: collapse;\" width=\"100%\" cellpadding=\"0\" border=\"0\" cellspacing=\"0\">\n<tbody>\n<tr>\n<td width=\"4%\"><\/td>\n<td width=\"4%\" valign=\"top\">\n<p>C.<\/p>\n<\/td>\n<td valign=\"top\">\n<p>&#8220;Committee&#8221; means the Compensation Committee of AMD&#8217;s Board of Directors, or<br \/>\nsuch other committee designated by that Board of Directors, which is authorized<br \/>\nto administer the Plan under Section 3 hereof. With respect to payments<br \/>\nhereunder intended to qualify as performance-based compensation under Section<br \/>\n162(m) of the Code, the Committee shall be comprised solely of two or more<br \/>\ndirectors who are &#8220;outside directors&#8221; under Section 162(m) of the Code.<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<table style=\"border-collapse: collapse;\" width=\"100%\" cellpadding=\"0\" border=\"0\" cellspacing=\"0\">\n<tbody>\n<tr>\n<td width=\"4%\"><\/td>\n<td width=\"4%\" valign=\"top\">\n<p>D.<\/p>\n<\/td>\n<td valign=\"top\">\n<p>&#8220;Company&#8221; means AMD and any corporation or other business entity of which AMD<br \/>\n(i) directly or indirectly has an ownership interest of 50% or more, or (ii) has<br \/>\na right to elect or appoint 50% or more of the board of directors or other<br \/>\ngoverning body.<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<table style=\"border-collapse: collapse;\" width=\"100%\" cellpadding=\"0\" border=\"0\" cellspacing=\"0\">\n<tbody>\n<tr>\n<td width=\"4%\"><\/td>\n<td width=\"4%\" valign=\"top\">\n<p>E.<\/p>\n<\/td>\n<td valign=\"top\">\n<p>&#8220;Key Employee&#8221; means any employee of the Company whose performance the<br \/>\nCommittee determines can have a significant effect on the success of the<br \/>\nCompany.<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<table style=\"border-collapse: collapse;\" width=\"100%\" cellpadding=\"0\" border=\"0\" cellspacing=\"0\">\n<tbody>\n<tr>\n<td width=\"4%\"><\/td>\n<td width=\"4%\" valign=\"top\">\n<p>F.<\/p>\n<\/td>\n<td valign=\"top\">\n<p>&#8220;Participant&#8221; means any Key Employee to whom an Award is granted under the<br \/>\nPlan.<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<table style=\"border-collapse: collapse;\" width=\"100%\" cellpadding=\"0\" border=\"0\" cellspacing=\"0\">\n<tbody>\n<tr>\n<td width=\"4%\"><\/td>\n<td width=\"4%\" valign=\"top\">\n<p>G.<\/p>\n<\/td>\n<td valign=\"top\">\n<p>&#8220;Performance Period&#8221; means any fiscal year of the Company or such other<br \/>\nperiod as determined by the Committee.<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<table style=\"border-collapse: collapse;\" width=\"100%\" cellpadding=\"0\" border=\"0\" cellspacing=\"0\">\n<tbody>\n<tr>\n<td width=\"4%\"><\/td>\n<td width=\"4%\" valign=\"top\">\n<p>H.<\/p>\n<\/td>\n<td valign=\"top\">\n<p>&#8220;Plan&#8221; means this Plan, which shall be known as the AMD Executive Incentive<br \/>\nPlan.<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<table style=\"border-collapse: collapse;\" width=\"100%\" cellpadding=\"0\" border=\"0\" cellspacing=\"0\">\n<tbody>\n<tr>\n<td width=\"4%\" valign=\"top\">\n<p>3.<\/p>\n<\/td>\n<td valign=\"top\"><u>Administration<\/u><\/p>\n<p>.<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<table style=\"border-collapse: collapse;\" width=\"100%\" cellpadding=\"0\" border=\"0\" cellspacing=\"0\">\n<tbody>\n<tr>\n<td width=\"4%\"><\/td>\n<td width=\"4%\" valign=\"top\">\n<p>A.<\/p>\n<\/td>\n<td valign=\"top\">\n<p>The Plan shall be administered by the Committee. Subject to the requirements<br \/>\nfor qualifying payments hereunder as performance-based compensation under<br \/>\nSection 162(m) of the Code, the Committee shall have the authority to:<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<table style=\"border-collapse: collapse;\" width=\"100%\" cellpadding=\"0\" border=\"0\" cellspacing=\"0\">\n<tbody>\n<tr>\n<td width=\"8%\"><\/td>\n<td width=\"5%\" valign=\"top\">\n<p>(i)<\/p>\n<\/td>\n<td valign=\"top\">\n<p>interpret and determine all questions of policy and expediency pertaining to<br \/>\nthe Plan;<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<table style=\"border-collapse: collapse;\" width=\"100%\" cellpadding=\"0\" border=\"0\" cellspacing=\"0\">\n<tbody>\n<tr>\n<td width=\"8%\"><\/td>\n<td width=\"5%\" valign=\"top\">\n<p>(ii)<\/p>\n<\/td>\n<td valign=\"top\">\n<p>adopt such rules, regulations, agreements and instruments as it deems<br \/>\nnecessary for its proper administration;<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<hr>\n<table style=\"border-collapse: collapse;\" width=\"100%\" cellpadding=\"0\" border=\"0\" cellspacing=\"0\">\n<tbody>\n<tr>\n<td width=\"8%\"><\/td>\n<td width=\"5%\" valign=\"top\">\n<p>(iii)<\/p>\n<\/td>\n<td valign=\"top\">\n<p>select Key Employees to receive Awards;<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<table style=\"border-collapse: collapse;\" width=\"100%\" cellpadding=\"0\" border=\"0\" cellspacing=\"0\">\n<tbody>\n<tr>\n<td width=\"8%\"><\/td>\n<td width=\"5%\" valign=\"top\">\n<p>(iv)<\/p>\n<\/td>\n<td valign=\"top\">\n<p>determine the terms of Awards;<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<table style=\"border-collapse: collapse;\" width=\"100%\" cellpadding=\"0\" border=\"0\" cellspacing=\"0\">\n<tbody>\n<tr>\n<td width=\"8%\"><\/td>\n<td width=\"5%\" valign=\"top\">\n<p>(v)<\/p>\n<\/td>\n<td valign=\"top\">\n<p>determine amounts subject to Awards (within the limits prescribed in the<br \/>\nPlan);<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<table style=\"border-collapse: collapse;\" width=\"100%\" cellpadding=\"0\" border=\"0\" cellspacing=\"0\">\n<tbody>\n<tr>\n<td width=\"8%\"><\/td>\n<td width=\"5%\" valign=\"top\">\n<p>(vi)<\/p>\n<\/td>\n<td valign=\"top\">\n<p>determine whether Awards will be granted in replacement of or as alternatives<br \/>\nto any other incentive or compensation plan of the Company or an acquired<br \/>\nbusiness unit;<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<table style=\"border-collapse: collapse;\" width=\"100%\" cellpadding=\"0\" border=\"0\" cellspacing=\"0\">\n<tbody>\n<tr>\n<td width=\"8%\"><\/td>\n<td width=\"5%\" valign=\"top\">\n<p>(vii)<\/p>\n<\/td>\n<td valign=\"top\">\n<p>grant waivers of Plan or Award conditions (other than Awards intended to<br \/>\nqualify as performance-based compensation under Section 162(m) of the Code);\n<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<table style=\"border-collapse: collapse;\" width=\"100%\" cellpadding=\"0\" border=\"0\" cellspacing=\"0\">\n<tbody>\n<tr>\n<td width=\"8%\"><\/td>\n<td width=\"5%\" valign=\"top\">\n<p>(viii)<\/p>\n<\/td>\n<td valign=\"top\">\n<p>accelerate the payment of Awards (but with respect to Awards intended to<br \/>\nqualify as performance-based compensation under Section 162(m) of the Code, only<br \/>\nas permitted under that Section);<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<table style=\"border-collapse: collapse;\" width=\"100%\" cellpadding=\"0\" border=\"0\" cellspacing=\"0\">\n<tbody>\n<tr>\n<td width=\"8%\"><\/td>\n<td width=\"5%\" valign=\"top\">\n<p>(ix)<\/p>\n<\/td>\n<td valign=\"top\">\n<p>correct any defect, supply any omission, or reconcile any inconsistency in<br \/>\nthe Plan, any Award or any Award notice;<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<table style=\"border-collapse: collapse;\" width=\"100%\" cellpadding=\"0\" border=\"0\" cellspacing=\"0\">\n<tbody>\n<tr>\n<td width=\"8%\"><\/td>\n<td width=\"5%\" valign=\"top\">\n<p>(x)<\/p>\n<\/td>\n<td valign=\"top\">\n<p>take any and all other actions it deems necessary or advisable for the proper<br \/>\nadministration of the Plan;<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<table style=\"border-collapse: collapse;\" width=\"100%\" cellpadding=\"0\" border=\"0\" cellspacing=\"0\">\n<tbody>\n<tr>\n<td width=\"8%\"><\/td>\n<td width=\"5%\" valign=\"top\">\n<p>(xi)<\/p>\n<\/td>\n<td valign=\"top\">\n<p>adopt such Plan procedures, regulations, subplans and the like as it deems<br \/>\nare necessary to enable Key Employees to receive Awards; and<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<table style=\"border-collapse: collapse;\" width=\"100%\" cellpadding=\"0\" border=\"0\" cellspacing=\"0\">\n<tbody>\n<tr>\n<td width=\"8%\"><\/td>\n<td width=\"5%\" valign=\"top\">\n<p>(xii)<\/p>\n<\/td>\n<td valign=\"top\">\n<p>amend the Plan at any time and from time to time, provided however that no<br \/>\namendment to the Plan shall be effective unless approved by the Company&#8217;s<br \/>\nstockholders, to the extent such stockholder approval is required under Section<br \/>\n162(m) of the Code.<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<table style=\"border-collapse: collapse;\" width=\"100%\" cellpadding=\"0\" border=\"0\" cellspacing=\"0\">\n<tbody>\n<tr>\n<td width=\"4%\"><\/td>\n<td width=\"4%\" valign=\"top\">\n<p>B.<\/p>\n<\/td>\n<td valign=\"top\">\n<p>The Committee may delegate its authority to grant and administer Awards to a<br \/>\nseparate committee; however, only the Committee may grant and administer Awards<br \/>\nwhich are intended to qualify as performance-based compensation under Section<br \/>\n162(m) of the Code.<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<table style=\"border-collapse: collapse;\" width=\"100%\" cellpadding=\"0\" border=\"0\" cellspacing=\"0\">\n<tbody>\n<tr>\n<td width=\"4%\" valign=\"top\">\n<p>4.<\/p>\n<\/td>\n<td valign=\"top\"><u>Eligibility<\/u><\/p>\n<p>.<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>Only Key Employees as designated by the Committee are eligible to become<br \/>\nParticipants in the Plan. No person shall be automatically entitled to<br \/>\nparticipate in the Plan.<\/p>\n<\/p>\n<table style=\"border-collapse: collapse;\" width=\"100%\" cellpadding=\"0\" border=\"0\" cellspacing=\"0\">\n<tbody>\n<tr>\n<td width=\"4%\" valign=\"top\">\n<p>5.<\/p>\n<\/td>\n<td valign=\"top\"><u>Performance Goals<\/u><\/p>\n<p>.<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<table style=\"border-collapse: collapse;\" width=\"100%\" cellpadding=\"0\" border=\"0\" cellspacing=\"0\">\n<tbody>\n<tr>\n<td width=\"4%\"><\/td>\n<td width=\"4%\" valign=\"top\">\n<p>A.<\/p>\n<\/td>\n<td valign=\"top\">\n<p>The Committee shall set forth in writing objectively determinable performance<br \/>\ngoals (&#8220;<u>Performance Goals<\/u>&#8220;) applicable to a Participant for a Performance<br \/>\nPeriod prior to the commencement of such Performance Period, provided, however,<br \/>\nthat such goals may be established after the start of the Performance Period<br \/>\nbut, with respect to an Award that is intended to qualify as performance-based<br \/>\ncompensation under Section 162(m) of the Code, in no event later than the latest<br \/>\ntime permitted by Section 162(m) of the Code with respect to any payments<br \/>\nintended to qualify as performance-based compensation under Section 162(m) of<br \/>\nthe Code (generally, no later than the earlier of (i) 90 days after the<br \/>\ncommencement of the Performance Period or (ii) the lapse of 25% of the<br \/>\nPerformance Period, and in any event while the outcome is substantially<br \/>\nuncertain) (the &#8220;<u> 162(m) Determination Date<\/u> &#8220;).<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<hr>\n<table style=\"border-collapse: collapse;\" width=\"100%\" cellpadding=\"0\" border=\"0\" cellspacing=\"0\">\n<tbody>\n<tr>\n<td width=\"4%\"><\/td>\n<td width=\"4%\" valign=\"top\">\n<p>B.<\/p>\n<\/td>\n<td valign=\"top\">\n<p>Each Performance Goal shall relate to one or more of the following business<br \/>\ncriteria of the individual, the Company as a whole, any business unit of the<br \/>\nCompany, or any combination thereof, that are to be monitored during the fiscal<br \/>\nyear (or Performance Period):<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<table style=\"border-collapse: collapse;\" width=\"100%\" cellpadding=\"0\" border=\"0\" cellspacing=\"0\">\n<tbody>\n<tr>\n<td width=\"14%\"><\/td>\n<td width=\"2%\" valign=\"top\">\n<\/td>\n<td width=\"1%\" valign=\"top\"><\/td>\n<td valign=\"top\">\n<p align=\"left\">Net income<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<table style=\"border-collapse: collapse;\" width=\"100%\" cellpadding=\"0\" border=\"0\" cellspacing=\"0\">\n<tbody>\n<tr>\n<td width=\"14%\"><\/td>\n<td width=\"2%\" valign=\"top\">\n<\/td>\n<td width=\"1%\" valign=\"top\"><\/td>\n<td valign=\"top\">\n<p align=\"left\">Operating income<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<table style=\"border-collapse: collapse;\" width=\"100%\" cellpadding=\"0\" border=\"0\" cellspacing=\"0\">\n<tbody>\n<tr>\n<td width=\"14%\"><\/td>\n<td width=\"2%\" valign=\"top\">\n<\/td>\n<td width=\"1%\" valign=\"top\"><\/td>\n<td valign=\"top\">\n<p align=\"left\">Earnings before interest and taxes<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<table style=\"border-collapse: collapse;\" width=\"100%\" cellpadding=\"0\" border=\"0\" cellspacing=\"0\">\n<tbody>\n<tr>\n<td width=\"14%\"><\/td>\n<td width=\"2%\" valign=\"top\">\n<\/td>\n<td width=\"1%\" valign=\"top\"><\/td>\n<td valign=\"top\">\n<p align=\"left\">Earnings per share<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<table style=\"border-collapse: collapse;\" width=\"100%\" cellpadding=\"0\" border=\"0\" cellspacing=\"0\">\n<tbody>\n<tr>\n<td width=\"14%\"><\/td>\n<td width=\"2%\" valign=\"top\">\n<\/td>\n<td width=\"1%\" valign=\"top\"><\/td>\n<td valign=\"top\">\n<p align=\"left\">Return on investment<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<table style=\"border-collapse: collapse;\" width=\"100%\" cellpadding=\"0\" border=\"0\" cellspacing=\"0\">\n<tbody>\n<tr>\n<td width=\"14%\"><\/td>\n<td width=\"2%\" valign=\"top\">\n<\/td>\n<td width=\"1%\" valign=\"top\"><\/td>\n<td valign=\"top\">\n<p align=\"left\">Return on capital<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<table style=\"border-collapse: collapse;\" width=\"100%\" cellpadding=\"0\" border=\"0\" cellspacing=\"0\">\n<tbody>\n<tr>\n<td width=\"14%\"><\/td>\n<td width=\"2%\" valign=\"top\">\n<\/td>\n<td width=\"1%\" valign=\"top\"><\/td>\n<td valign=\"top\">\n<p align=\"left\">Return on invested capital<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<table style=\"border-collapse: collapse;\" width=\"100%\" cellpadding=\"0\" border=\"0\" cellspacing=\"0\">\n<tbody>\n<tr>\n<td width=\"14%\"><\/td>\n<td width=\"2%\" valign=\"top\">\n<\/td>\n<td width=\"1%\" valign=\"top\"><\/td>\n<td valign=\"top\">\n<p align=\"left\">Return on capital compared to cost of capital<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<table style=\"border-collapse: collapse;\" width=\"100%\" cellpadding=\"0\" border=\"0\" cellspacing=\"0\">\n<tbody>\n<tr>\n<td width=\"14%\"><\/td>\n<td width=\"2%\" valign=\"top\">\n<\/td>\n<td width=\"1%\" valign=\"top\"><\/td>\n<td valign=\"top\">\n<p align=\"left\">Return on capital employed<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<table style=\"border-collapse: collapse;\" width=\"100%\" cellpadding=\"0\" border=\"0\" cellspacing=\"0\">\n<tbody>\n<tr>\n<td width=\"14%\"><\/td>\n<td width=\"2%\" valign=\"top\">\n<\/td>\n<td width=\"1%\" valign=\"top\"><\/td>\n<td valign=\"top\">\n<p align=\"left\">Return on equity<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<table style=\"border-collapse: collapse;\" width=\"100%\" cellpadding=\"0\" border=\"0\" cellspacing=\"0\">\n<tbody>\n<tr>\n<td width=\"14%\"><\/td>\n<td width=\"2%\" valign=\"top\">\n<\/td>\n<td width=\"1%\" valign=\"top\"><\/td>\n<td valign=\"top\">\n<p align=\"left\">Return on assets<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<table style=\"border-collapse: collapse;\" width=\"100%\" cellpadding=\"0\" border=\"0\" cellspacing=\"0\">\n<tbody>\n<tr>\n<td width=\"14%\"><\/td>\n<td width=\"2%\" valign=\"top\">\n<\/td>\n<td width=\"1%\" valign=\"top\"><\/td>\n<td valign=\"top\">\n<p align=\"left\">Return on net assets<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<table style=\"border-collapse: collapse;\" width=\"100%\" cellpadding=\"0\" border=\"0\" cellspacing=\"0\">\n<tbody>\n<tr>\n<td width=\"14%\"><\/td>\n<td width=\"2%\" valign=\"top\">\n<\/td>\n<td width=\"1%\" valign=\"top\"><\/td>\n<td valign=\"top\">\n<p align=\"left\">Stockholder return<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<table style=\"border-collapse: collapse;\" width=\"100%\" cellpadding=\"0\" border=\"0\" cellspacing=\"0\">\n<tbody>\n<tr>\n<td width=\"14%\"><\/td>\n<td width=\"2%\" valign=\"top\">\n<\/td>\n<td width=\"1%\" valign=\"top\"><\/td>\n<td valign=\"top\">\n<p align=\"left\">Cash return on capitalization<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<table style=\"border-collapse: collapse;\" width=\"100%\" cellpadding=\"0\" border=\"0\" cellspacing=\"0\">\n<tbody>\n<tr>\n<td width=\"14%\"><\/td>\n<td width=\"2%\" valign=\"top\">\n<\/td>\n<td width=\"1%\" valign=\"top\"><\/td>\n<td valign=\"top\">\n<p align=\"left\">Revenue<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<table style=\"border-collapse: collapse;\" width=\"100%\" cellpadding=\"0\" border=\"0\" cellspacing=\"0\">\n<tbody>\n<tr>\n<td width=\"14%\"><\/td>\n<td width=\"2%\" valign=\"top\">\n<\/td>\n<td width=\"1%\" valign=\"top\"><\/td>\n<td valign=\"top\">\n<p align=\"left\">Revenue ratios (per employee or per customer)<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<table style=\"border-collapse: collapse;\" width=\"100%\" cellpadding=\"0\" border=\"0\" cellspacing=\"0\">\n<tbody>\n<tr>\n<td width=\"14%\"><\/td>\n<td width=\"2%\" valign=\"top\">\n<\/td>\n<td width=\"1%\" valign=\"top\"><\/td>\n<td valign=\"top\">\n<p align=\"left\">Stock price<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<table style=\"border-collapse: collapse;\" width=\"100%\" cellpadding=\"0\" border=\"0\" cellspacing=\"0\">\n<tbody>\n<tr>\n<td width=\"14%\"><\/td>\n<td width=\"2%\" valign=\"top\">\n<\/td>\n<td width=\"1%\" valign=\"top\"><\/td>\n<td valign=\"top\">\n<p align=\"left\">Market share<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<table style=\"border-collapse: collapse;\" width=\"100%\" cellpadding=\"0\" border=\"0\" cellspacing=\"0\">\n<tbody>\n<tr>\n<td width=\"14%\"><\/td>\n<td width=\"2%\" valign=\"top\">\n<\/td>\n<td width=\"1%\" valign=\"top\"><\/td>\n<td valign=\"top\">\n<p align=\"left\">Stockholder value<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<table style=\"border-collapse: collapse;\" width=\"100%\" cellpadding=\"0\" border=\"0\" cellspacing=\"0\">\n<tbody>\n<tr>\n<td width=\"14%\"><\/td>\n<td width=\"2%\" valign=\"top\">\n<\/td>\n<td width=\"1%\" valign=\"top\"><\/td>\n<td valign=\"top\">\n<p align=\"left\">Net cash flow<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<table style=\"border-collapse: collapse;\" width=\"100%\" cellpadding=\"0\" border=\"0\" cellspacing=\"0\">\n<tbody>\n<tr>\n<td width=\"14%\"><\/td>\n<td width=\"2%\" valign=\"top\">\n<\/td>\n<td width=\"1%\" valign=\"top\"><\/td>\n<td valign=\"top\">\n<p align=\"left\">Cash flow<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<table style=\"border-collapse: collapse;\" width=\"100%\" cellpadding=\"0\" border=\"0\" cellspacing=\"0\">\n<tbody>\n<tr>\n<td width=\"14%\"><\/td>\n<td width=\"2%\" valign=\"top\">\n<\/td>\n<td width=\"1%\" valign=\"top\"><\/td>\n<td valign=\"top\">\n<p align=\"left\">Cash flow from operations<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<table style=\"border-collapse: collapse;\" width=\"100%\" cellpadding=\"0\" border=\"0\" cellspacing=\"0\">\n<tbody>\n<tr>\n<td width=\"14%\"><\/td>\n<td width=\"2%\" valign=\"top\">\n<\/td>\n<td width=\"1%\" valign=\"top\"><\/td>\n<td valign=\"top\">\n<p align=\"left\">Cost reductions and cost ratios (per employee or per customer)\n<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<table style=\"border-collapse: collapse;\" width=\"100%\" cellpadding=\"0\" border=\"0\" cellspacing=\"0\">\n<tbody>\n<tr>\n<td width=\"14%\"><\/td>\n<td width=\"2%\" valign=\"top\">\n<\/td>\n<td width=\"1%\" valign=\"top\"><\/td>\n<td valign=\"top\">\n<p align=\"left\">New product releases<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<table style=\"border-collapse: collapse;\" width=\"100%\" cellpadding=\"0\" border=\"0\" cellspacing=\"0\">\n<tbody>\n<tr>\n<td width=\"14%\"><\/td>\n<td width=\"2%\" valign=\"top\">\n<\/td>\n<td width=\"1%\" valign=\"top\"><\/td>\n<td valign=\"top\">\n<p align=\"left\">Strategic positioning programs, including the achievement of<br \/>\nspecified milestones or the completion of specified projects.<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<hr>\n<p>Goals may be based on GAAP or non-GAAP measures as determined by the<br \/>\nCommittee and may also be based on performance relative to a peer group of<br \/>\ncompanies. Unless otherwise stated, such a Performance Goal need not be based<br \/>\nupon an increase or positive result under a particular business criterion and<br \/>\ncould include, for example, maintaining the status quo or limiting economic<br \/>\nlosses (measured, in each case, by reference to specific business criteria).\n<\/p>\n<\/p>\n<table style=\"border-collapse: collapse;\" width=\"100%\" cellpadding=\"0\" border=\"0\" cellspacing=\"0\">\n<tbody>\n<tr>\n<td width=\"4%\"><\/td>\n<td width=\"4%\" valign=\"top\">\n<p>C.<\/p>\n<\/td>\n<td valign=\"top\">\n<p>With respect to an Award that is intended to qualify as performance-based<br \/>\ncompensation under Section 162(m) of the Code, on or prior to the 162(m)<br \/>\nDetermination Date, the Committee shall establish in writing a bonus formula<br \/>\nspecifying the target level and\/or other level(s) of performance that must be<br \/>\nachieved with respect to each criterion that is identified in a Performance Goal<br \/>\nin order for an Award to be payable and shall, for each Participant, establish<br \/>\nin writing a target (and\/or other level(s)) Award payable under the Plan for the<br \/>\nPerformance Period upon attainment of the Performance Goals.<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<table style=\"border-collapse: collapse;\" width=\"100%\" cellpadding=\"0\" border=\"0\" cellspacing=\"0\">\n<tbody>\n<tr>\n<td width=\"4%\"><\/td>\n<td width=\"4%\" valign=\"top\">\n<p>D.<\/p>\n<\/td>\n<td valign=\"top\">\n<p>In the event Performance Goals are based on more than one business criterion,<br \/>\nthe Committee may determine to make Awards upon attainment of the Performance<br \/>\nGoal relating to any one or more of such criteria, provided the Performance<br \/>\nGoals, when established, are stated as alternatives to one another at the time<br \/>\nthe Performance Goal is established.<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<table style=\"border-collapse: collapse;\" width=\"100%\" cellpadding=\"0\" border=\"0\" cellspacing=\"0\">\n<tbody>\n<tr>\n<td width=\"4%\" valign=\"top\">\n<p>6.<\/p>\n<\/td>\n<td valign=\"top\"><u>Awards<\/u><\/p>\n<p>.<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<table style=\"border-collapse: collapse;\" width=\"100%\" cellpadding=\"0\" border=\"0\" cellspacing=\"0\">\n<tbody>\n<tr>\n<td width=\"4%\"><\/td>\n<td width=\"4%\" valign=\"top\">\n<p>A.<\/p>\n<\/td>\n<td valign=\"top\">\n<p>During any fiscal year of the Company, no Participant shall receive an Award<br \/>\nof more than $10,000,000.<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<table style=\"border-collapse: collapse;\" width=\"100%\" cellpadding=\"0\" border=\"0\" cellspacing=\"0\">\n<tbody>\n<tr>\n<td width=\"4%\"><\/td>\n<td width=\"4%\" valign=\"top\">\n<p>B.<\/p>\n<\/td>\n<td valign=\"top\">\n<p>No Award that is intended to qualify as performance-based compensation under<br \/>\nSection 162(m) of the Code shall be paid to a Participant unless and until the<br \/>\nCommittee makes a certification in writing with respect to the attainment of the<br \/>\nPerformance Goals to the extent required by Section 162(m) of the Code. Although<br \/>\nthe Committee may in its sole discretion eliminate or reduce an Award payable to<br \/>\na Participant pursuant to the applicable bonus formula, the Committee shall have<br \/>\nno discretion to increase the amount of a Participant&#8217;s Award as determined<br \/>\nunder the applicable bonus formula.<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<table style=\"border-collapse: collapse;\" width=\"100%\" cellpadding=\"0\" border=\"0\" cellspacing=\"0\">\n<tbody>\n<tr>\n<td width=\"4%\"><\/td>\n<td width=\"4%\" valign=\"top\">\n<p>C.<\/p>\n<\/td>\n<td valign=\"top\">\n<p>Unless otherwise directed by the Committee, each Award shall be paid on the<br \/>\nMarch 15 immediately following the end of the Performance Period to which such<br \/>\nAward relates.<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<table style=\"border-collapse: collapse;\" width=\"100%\" cellpadding=\"0\" border=\"0\" cellspacing=\"0\">\n<tbody>\n<tr>\n<td width=\"4%\"><\/td>\n<td width=\"4%\" valign=\"top\">\n<p>D.<\/p>\n<\/td>\n<td valign=\"top\">\n<p>The payment of an Award requires that the Participant be on the Company&#8217;s<br \/>\npayroll as of the date of payment of the Award. Subject to the requirements for<br \/>\nqualifying payments hereunder as performance-based compensation under Section<br \/>\n162(m) of the Code, the Committee may make exceptions to this requirement in the<br \/>\ncase of change in control, retirement, death or disability, as determined by the<br \/>\nCommittee in its sole discretion, provided, however, in the case of retirement<br \/>\nunder an Award that is intended to qualify as performance-based compensation<br \/>\nunder Section 162(m) of the Code, an exception may be made by the Committee only<br \/>\nif the performance goals for such qualifying payments have been satisfied based<br \/>\non actual performance through the end of the Performance Period (or if<br \/>\napplicable, based on actual performance through the termination date), the<br \/>\namount is pro-rated based on the time employed during the Performance Period,<br \/>\nand the payment is made at the same time similarly situated participants receive<br \/>\nbonuses for such Performance Period.<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<table style=\"border-collapse: collapse;\" width=\"100%\" cellpadding=\"0\" border=\"0\" cellspacing=\"0\">\n<tbody>\n<tr>\n<td width=\"4%\"><\/td>\n<td width=\"4%\" valign=\"top\">\n<p>E.<\/p>\n<\/td>\n<td valign=\"top\">\n<p>The Company shall withhold all applicable federal, state, local and foreign<br \/>\ntaxes required by law to be paid or withheld relating to the receipt or payment<br \/>\nof any Award.<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<table style=\"border-collapse: collapse;\" width=\"100%\" cellpadding=\"0\" border=\"0\" cellspacing=\"0\">\n<tbody>\n<tr>\n<td width=\"4%\"><\/td>\n<td width=\"4%\" valign=\"top\">\n<p>F.<\/p>\n<\/td>\n<td valign=\"top\">\n<p>At the discretion of the Committee, payment of an Award or any portion<br \/>\nthereof may be deferred under a nonqualified deferred compensation plan<br \/>\nmaintained by the Committee until a time established by the Committee and in<br \/>\naccordance with the terms of such plan.<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<hr>\n<table style=\"border-collapse: collapse;\" width=\"100%\" cellpadding=\"0\" border=\"0\" cellspacing=\"0\">\n<tbody>\n<tr>\n<td width=\"4%\" valign=\"top\">\n<p>7.<\/p>\n<\/td>\n<td valign=\"top\"><u>General<\/u><\/p>\n<p>.<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<table style=\"border-collapse: collapse;\" width=\"100%\" cellpadding=\"0\" border=\"0\" cellspacing=\"0\">\n<tbody>\n<tr>\n<td width=\"4%\"><\/td>\n<td width=\"4%\" valign=\"top\">\n<p>A.<\/p>\n<\/td>\n<td valign=\"top\">\n<p>No Awards that are intended to qualify as performance-based compensation<br \/>\nunder Section 162(m) of the Code shall be paid under the Plan unless and until<br \/>\nthe Company&#8217;s stockholders shall have approved the Plan and the business<br \/>\ncriteria set forth above as required by Section 162(m) of the Code. So long as<br \/>\nthe Plan shall not have been previously terminated by the Company, it shall be<br \/>\nresubmitted for approval by the Company&#8217;s stockholders in the fifth year after<br \/>\nit shall have first been approved by the Company&#8217;s stockholders, and no later<br \/>\nthan every fifth year thereafter. In addition, the Plan shall be resubmitted to<br \/>\nthe Company&#8217;s stockholders for approval as required by Section 162(m) of the<br \/>\nCode if it is amended in any way that changes the material terms of the Plan,<br \/>\nincluding by materially modifying the business criteria set forth above,<br \/>\nincreasing the maximum Award payable under the Plan or changing the Plan&#8217;s<br \/>\neligibility requirements.<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<table style=\"border-collapse: collapse;\" width=\"100%\" cellpadding=\"0\" border=\"0\" cellspacing=\"0\">\n<tbody>\n<tr>\n<td width=\"4%\"><\/td>\n<td width=\"4%\" valign=\"top\">\n<p>B.<\/p>\n<\/td>\n<td valign=\"top\">\n<p>Any rights of a Participant under the Plan shall not be assignable by such<br \/>\nParticipant, by operation of law or otherwise, except by will or the laws of<br \/>\ndescent and distribution. No Participant may create a lien on any funds or<br \/>\nrights to which he or she may have an interest under the Plan, or which is held<br \/>\nby the Company for the account of the Participant under the Plan.<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<table style=\"border-collapse: collapse;\" width=\"100%\" cellpadding=\"0\" border=\"0\" cellspacing=\"0\">\n<tbody>\n<tr>\n<td width=\"4%\"><\/td>\n<td width=\"4%\" valign=\"top\">\n<p>C.<\/p>\n<\/td>\n<td valign=\"top\">\n<p>Participation in the Plan shall not give any Key Employee any right to remain<br \/>\nin the employ of the Company. Further, the adoption of this Plan shall not be<br \/>\ndeemed to give any Key Employee or other individual the right to be selected as<br \/>\na Participant or to be granted an Award.<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<table style=\"border-collapse: collapse;\" width=\"100%\" cellpadding=\"0\" border=\"0\" cellspacing=\"0\">\n<tbody>\n<tr>\n<td width=\"4%\"><\/td>\n<td width=\"4%\" valign=\"top\">\n<p>D.<\/p>\n<\/td>\n<td valign=\"top\">\n<p>The Plan shall constitute an unfunded, unsecured obligation of the Company to<br \/>\nmake bonus payments from its general assets in accordance with the provisions of<br \/>\nthe Plan. To the extent any person acquires a right to receive payments from the<br \/>\nCompany under this Plan, such rights shall be no greater than the rights of an<br \/>\nunsecured creditor of the Company.<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<table style=\"border-collapse: collapse;\" width=\"100%\" cellpadding=\"0\" border=\"0\" cellspacing=\"0\">\n<tbody>\n<tr>\n<td width=\"4%\"><\/td>\n<td width=\"4%\" valign=\"top\">\n<p>E.<\/p>\n<\/td>\n<td valign=\"top\">\n<p>The Plan shall be governed by and construed in accordance with the laws of<br \/>\nthe State of California.<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<table style=\"border-collapse: collapse;\" width=\"100%\" cellpadding=\"0\" border=\"0\" cellspacing=\"0\">\n<tbody>\n<tr>\n<td width=\"4%\"><\/td>\n<td width=\"4%\" valign=\"top\">\n<p>F.<\/p>\n<\/td>\n<td valign=\"top\">\n<p>The Board may amend or terminate the Plan at any time and for any reason,<br \/>\nsubject to stockholder approval as described above.<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n","protected":false},"template":"","meta":{"_acf_changed":false,"_stopmodifiedupdate":true,"_modified_date":"","_cloudinary_featured_overwrite":false},"corporate_contracts_companies":[6576],"corporate_contracts_industries":[9512],"corporate_contracts_types":[9539,9546],"class_list":["post-38464","corporate_contracts","type-corporate_contracts","status-publish","hentry","corporate_contracts_companies-advanced-micro-devices-inc","corporate_contracts_industries-technology__semiconductors","corporate_contracts_types-compensation","corporate_contracts_types-compensation__incentive"],"acf":[],"_links":{"self":[{"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/corporate_contracts\/38464","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/corporate_contracts"}],"about":[{"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/types\/corporate_contracts"}],"wp:attachment":[{"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/media?parent=38464"}],"wp:term":[{"taxonomy":"corporate_contracts_companies","embeddable":true,"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/corporate_contracts_companies?post=38464"},{"taxonomy":"corporate_contracts_industries","embeddable":true,"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/corporate_contracts_industries?post=38464"},{"taxonomy":"corporate_contracts_types","embeddable":true,"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/corporate_contracts_types?post=38464"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}