Document:

<PAGE>

                                                                   EXHIBIT 10.14

AMD's
U.S. Stock Option
Program
For options granted
after April 25, 2000
<PAGE>

AMD's success is a direct result of the creativity, innovation, and hard work of
employees like you. In recognition of this, we maintain a portfolio of programs
that enable you to share in our success:

 . Cash and deferred profit sharing plans, which entitle you to a share of AMD's
  profits.

 . The stock purchase plan, which enables you to buy AMD common stock at a
  discounted price and participate as an owner of the company.

 . The stock option program, under which you can benefit from AMD's long-term
  success as the company's common stock price grows.

WHO RECEIVES STOCK OPTIONS?

Congratulations on being selected to receive a stock option award. AMD limits
the granting of stock options to those employees whose individual contributions
most influence AMD's performance and add to shareholder value. The number of
options you are granted reflects competitive compensation practices, your
position at AMD, and, most importantly, your individual performance.

WHAT ARE STOCK OPTIONS?

Stock options give you the right to buy shares of AMD common stock at the
"exercise price" within a specified number of years. You "exercise" your option
by purchasing the underlying shares any time after you "vest" in the option (see
How Your Stock Options Vest), but before the option expires.

The attractiveness of stock options lies in the potential for increases in the
market price of the company's common stock over time. For example, if you are
granted options to buy 100 shares of AMD stock at an exercise price of $35 per
share, and the market price of the stock rises to $45, then your "unrealized"
financial gain is $10 per share (the difference between the exercise price and
the current market price). To realize that gain, you first have to have the
right to buy those 100 shares. If you do, you can buy the stock. You can then
keep the shares for potential future gain, or sell them in the market at any
time for the current market price. In this example, if you purchase shares and
then sell them when the market price moved up to $50, you would have a gain of
$15 per share ($50 - $35).

Enclosed with this brochure is your stock option document. It gives the date
your option was granted, the price to purchase the shares, and the first and
last dates you can purchase the shares.

HOW YOUR STOCK OPTIONS VEST

You earn the right to purchase shares according to the schedule for your grant
("vesting"). Each stock option grant has its own vesting period. The following
table shows the typical schedule for an initial grant to a newly eligible
employee or for an annual grant

                                                 Percent of Granted Options
                                                   That Are Fully Vested
                                            -----------------------------------
Anniversary of                                Initial            Annual
Grant Date                                      Grant             Grant
-------------------------------------------------------------------------------
First*                                             40%               25%
Second                                             60%               50%
Third                                              80%               75%
Fourth                                            100%              100%

*After the first year, awards vest in monthly increments over the remaining
time.

If you receive stock option grants in several years, their vesting periods will
overlap. For example, the following chart illustrates the vesting for a
hypothetical employee who receives an initial grant when he/she joins AMD and
then annual grants thereafter based on varying performance ratings:

Calendar           # of Options                Options Vesting in the Year
                                           ----------------------------------
  Year               Granted                     2     3     4     5     6
-----------------------------------------------------------------------------
   1                   550                      220   165   110   55
   2                   580                            145   145  145   145
   3                     0
   4                   540                                       135    135
   5                   600                                              150
 Total                                          220   310   255  335    430

The above vesting chart is based on continuous active service with AMD.

The stock option document for your grant shows the vesting dates for your
options.

                                       2
<PAGE>

IF YOU DIE OR BECOME DISABLED

If you have at least 15 years of AMD service and your AMD employment is
terminated because of your death or total disability, here's what happens on
your termination date:

 . If you are on an unpaid leave of absence, any options that would have become
  vested in the calendar year in which your leave began are immediately vested.

 . If you are not on an unpaid leave of absence, you become immediately vested in
  any options that would have become vested in that calendar year.

This accelerated vesting of options does not occur if your AMD employment is
terminated because of your death or disability and you have less than 15 years
of service.

IF AMD EXPERIENCES A "CHANGE IN CONTROL"

You become 100% vested in your outstanding options if AMD experiences a "change
in control", and your employment is terminated by AMD for any reason other than
for misconduct or, if applicable, by constructive termination within one year
after such a change. A "change in control" occurs when:

 . More than 20% of AMD has been acquired by a single person or entity,

 . Certain changes in the majority of AMD's Board of Directors occur during a
  two-year period,

 . A merger or consolidation of the company with or into another company,

 . Stockholders of the company approve a plan of complete liquidation, or

 . There is a sale or disposition of all or substantially all the company's
  assets.

IF YOU TAKE A LEAVE OF ABSENCE

You may not exercise any options during an unpaid leave of absence. Also, if
your unpaid leave of absence exceeds 30 consecutive days, the vesting dates for
your unvested options are automatically extended by the number of days by which
your unpaid leave exceeds 30 days. "Unpaid" means that AMD is not paying you a
salary. Unpaid leaves include personal leaves as well as disability, medical,
pregnancy and workers compensation leaves during which you are receiving
disability or workers' compensation benefits through AMD's benefit plans or
insurance. For more details, check with Treasury Services.

                                       3
<PAGE>

EXERCISING YOUR STOCK OPTIONS

Once your options are vested, you can exercise them-- that is, you can purchase
AMD common stock at the exercise price. You have a limited number of years from
the date of grant to exercise the options and take advantage of any increase in
the price of AMD stock above the exercise price. Most grants have a ten-year
life. The document for your stock option grant discloses the date on which your
options expire.

Your final opportunity to purchase your vested options is the last regular
business day of AMD before their expiration date. If you are waiting until that
last day, be sure that Treasury Services receives your completed Stock Option
Exercise form before 5:00 p.m. Pacific time.

If you leave AMD before the expiration date for your options, you have a limited
period of time after your termination date in which to exercise vested options.
See the section When You Leave AMD.

Treasury Services must receive your completed Stock Option Exercise form in
order for you to exercise your options and purchase shares, unless you are doing
an E*TRADE OptionsLink sale. You are responsible for knowing which options can
be exercised and the expiration dates for your options. Detailed information
regarding the number of shares exercisable can be obtained 24 hours a day/7
days a week via the following:

 . The internet at www.optionslink.com, or

 . The OptionsLink interactive voice response system at 1-(800) 838-0908.

Note: While you may look at your account information at any time through
OptionsLink, if you conduct an electronic transaction on the internet, then
E*Trade will act as your broker for that transaction and the net proceeds will
be deposited into your OptionsLink account (see the E*Trade OptionsLink brochure
for further details). If you wish to utilize a broker other than E*Trade, you
will have to contact that broker directly outside of the OptionsLink system.

For more details on exercising your options, please refer to the summary
entitled "Stock Option Exercise Procedures" which is available at
http://amdonline/treassvc.

There are four ways to exercise vested AMD options that have not expired:

   Cash Purchase

You can pay for the options yourself or arrange for your broker to pay for them.
On the next business day after receipt of your completed Stock Option Exercise
form, Treasury Services will notify you of the cost for the exercised options
plus applicable Federal, State, Social Security and Medicare tax withholding.
You must give Treasury Services a cashier's check or money order for the
exercise cost plus taxes within two weeks from the exercise date. You may elect
to receive either a stock certificate or have your shares electronically
transferred to your brokerage account.

   Financing through a Broker (also known as "Same
   Day Sale and Exercise")

You can contact any of AMD's designated brokers or you can do an electronic
trade through E*Trade (refer to the E*Trade OptionsLink brochure).

If you elect a "same day exercise and sale," you may:

 . Sell all shares.

 . Sell enough shares to cover the cost of the exercise and associated required
  taxes. You will then receive the remaining shares from your exercise. This
  option may not be available through E*Trade.

 . Sell only the number of shares you decide on and receive the balance of the
  shares. If the shares sold do not cover all the costs of exercising the
  options and associated required taxes, you must pay the balance through a
  cashier's check or money order to Treasury Services on the next business day
  following your exercise date. This option may not be available through
  E*Trade.

   Stock Swap Exercise

You can use AMD shares you have owned at least six months to pay for the
exercise price of the options. To initiate a stock swap, you must complete and
submit a Share Withholding/Delivery Election form in addition to a Stock Option
Exercise form to Treasury Services. You may not pay the exercise price by
requesting that Treasury Services withhold some of the shares resulting from the
options being purchased.

                                       4
<PAGE>

   Stock Withholding Exercise

You can exercise options and pay the required tax withholding from the shares of
AMD stock that you would otherwise receive through exercising your options. You
receive the balance of the AMD shares obtained through the purchased options. To
withhold shares to pay your taxes, you must send a completed Share
Withholding/Delivery Election form and a Stock Option Exercise form to Treasury
Services.

You may not pay the exercise price of your options by having Treasury Services
withhold some of the shares that would otherwise be issued to you.

WHEN TO EXERCISE

It is entirely your decision when to exercise vested options, keeping in mind
the expiration date for your options. (See the sections Exercising Stock Options
and When You Leave AMD.)

The timing of an exercise and/or sale can have a large impact on any value you
ultimately obtain from the option. In deciding when to exercise, you may wish to
consult with your financial advisor, stockbroker, or reputable publications in
which stock market analysts voice their opinions about future potential stock
values. It is also prudent to consult with a tax advisor to determine the
impact of exercising stock options on your tax obligations.

On the date...                     You Owe Federal Taxes on...
--------------------------------------------------------------------------------
Your stock option                  No taxes are due.
grant is approved
--------------------------------------------------------------------------------
You exercise your                  The difference (gain) between the market
options and sell                   value of the shares of AMD common stock
the shares of AMD                  on the exercise date, and the exercise price
stock at a later date.             of the options upon purchasing the options.
                                   The gain is taxable as ordinary income and
                                   subject to mandatory withholding for federal
                                   income, FICA, Medicare and applicable state
                                   and local taxes.

                                   When you sell the shares of stock, you owe
                                   tax on the difference between the market
                                   value of the shares on the sale date and the
                                   market value of the shares on the option
                                   exercise date. Gains are taxed at the short-
                                   term or long-term capital gains rate based on
                                   how long you have held the shares. The hold-
                                   ing period starts on the option exercise
                                   date.

                                   Months Held           Capital Gains Rate
                                   12 or less            short-term
                                   more than 12          long-term
--------------------------------------------------------------------------------
You exercise your                  The difference between the market value of
options and sell the               the shares and the exercise price of the
shares on the same                 options. The gain is taxable as ordinary
day.                               income and subject to mandatory withholding
                                   for federal income, FICA, Medicare and
                                   applicable state and local taxes.

TAXES

Your stock options are what the IRS calls "nonqualified" options. The table
above summarizes the current U.S. federal tax consequences associated with these
options. Depending on your state of residence, you may also owe state and local
taxes when you exercise your options or sell the shares obtained by exercising
your options.

                                       5
<PAGE>

WHEN YOU LEAVE AMD

You forfeit all unvested options when you leave AMD. If you are not a Vice
President or Officer of AMD, you normally have three months from your
termination date in which to exercise vested options that have not expired. For
example, if March 14 is your final day as an AMD employee, your last day to
purchase vested options is June 14 if it is a regular business day at AMD. If
June 14 is not a regular business day, the final day to buy your options is the
last regular AMD business day before June 14.

However, you (or your beneficiary) have 12 months from your termination date to
exercise vested options:

 . If your termination is due to your total disability.

 . If you die while employed at AMD.

 . If you have been a Vice President or Officer of AMD for at least 90 days when
  you terminate.

If you are uncertain about the final day to purchase options, be sure to contact
Treasury Services at least several days before the date on which you think that
your right to exercise your options ends.

FORFEITING STOCK OPTIONS

Your stock options are forfeited under the earliest of these circumstances:

 . You do not exercise the options before their expiration date,

 . The options are not vested when you leave AMD,

 . You do not exercise your options within the period for exercising them after
  you leave AMD, or

 . If you die while still an AMD employee and your beneficiary to whom the
  options were transferred does not exercise the options within 12 months after
  your death.

If you are terminated because of misconduct, AMD reserves the right to cancel
all your options, whether vested or unvested.

NO REINSTATEMENT OF FORFEITED STOCK OPTIONS IF REHIRED BY AMD

If you have a break in service with AMD, your nonvested options are canceled
and will not be reinstated, even if you are rehired the day after your break in
service.

TRANSFER OF STOCK OPTIONS

Your stock options may be transferred only as follows:

 . By a court-issued qualified domestic relations order,

 . By your last will and testament, or

 . By the laws of descent and distribution if you left no valid will.

Stock options transferred by a qualified domestic relations order expire twelve
months after the date of transfer.

Any other transfer or assignment of your stock options will not be accepted and
gives AMD the right to terminate your options as of the date of the attempted
transfer or assignment.

CHANGES IN CAPITALIZATION OF AMD

The Board of Directors will adjust the number of shares or the class of stock
subject to your options if the outstanding number of AMD common stock changes
as a result of changes in the capitalization of the company. These changes in
capitalization include stock dividends, mergers, consolidations, re-
capitalization, or split-up, combinations or exchange of shares.

                                       6
<PAGE>

                             FOR MORE INFORMATION

This brochure summarizes some of the important features of the current AMD stock
    option program. For more details, consult the official plan documents,
         your individual stock option documents, and the stock option
              plan prospectus, all of which can be obtained from
            Treasury Services, 1 AMD Place, Sunnyvale, California.
                  The mailing address is Treasury Services,
                  P.O. Box 3453, MS 106, Sunnyvale, CA 94088.

    In the case of any conflict between this brochure and the official plan
             documents, the official plan documents will govern.
               AMD reserves the right to amend or terminate the
                   program in whole or in part, at any time
          and for any reason, with or without notice to participants.

     Participation in the AMD stock option program does not confer on any
         participant any rights whatsoever with respect to continued
                         employment with the company.

                                                             Benefits Department
                                                                   One AMD Place
                                                     P.O. Box 3453, Mailstop 181
                                                             Sunnyvale, CA 94088
                                                                       Rev. 6/00

                                       7<PAGE>

                                                                   Exhibit 10.15

                                VICE PRESIDENT
                               INCENTIVE PROGRAM
                                    Summary

                           Personal and Confidential

                                  AMD [LOGO]
<PAGE>

================================================================================
                     AMD VICE PRESIDENT INCENTIVE PROGRAM
================================================================================

 I. Purpose

     The Vice President Incentive Program (VPIP) provides an incentive for AMD's
     Vice Presidents (Participants) to maximize both short-term financial
     performance against plan, as well as long-term revenue growth and Return on
     Equity (ROE). This summary presents an overview of the program.  Further
     details about how the program is administered, including specific formulas
     for each component, can be obtained from Corporate Compensation.

II. Plan Overview

     The VPIP consists of two plans (Plans):

     .    The Short-Term Plan (STP) provides a bonus for achieving planned
          performance for the current fiscal year (Plan Year).
     .    The Long-Term Plan (LTP) annually provides a bonus for sustained
          corporate performance over a three-fiscal-year period relative to
          external measures.

     Within these Plans, Participants are rewarded for meeting or exceeding
     performance objectives as follows:

          Table I

<TABLE>
<CAPTION>
          --------------------------------------------------------------------------------------------------------------------------
            Plan                       Component                                       Measure(s)
          --------------------------------------------------------------------------------------------------------------------------
          --------------------------------------------------------------------------------------------------------------------------
          <S>                    <C>                                  <C>
            STP                  Corporate Performance                . Adjusted Operating Income vs. Plan
                                                                      . Economic Value Added (EVA) Improvement vs. Plan

                                 Division Performance                 . Division Sales vs. Plan
                                                                      . Division Operating Profit vs. Plan

                                 Individual Performance               . Discretionary Individual & Division-Specific Objectives
          --------------------------------------------------------------------------------------------------------------------------
          --------------------------------------------------------------------------------------------------------------------------
            LTP                  Relative Profitability               . AMD ROE vs. S&P 500 ROE over 3 years

                                 Relative Sales Growth                . AMD Sales Growth vs. WSTS Sales Growth (3 years)
          --------------------------------------------------------------------------------------------------------------------------
</TABLE>

          A separate communication outlining the assigned target percentages for
          each component of the Plans, and division assignments and financial
          goals for the STP, will be provided to Participants each year.

                                                                               1
<PAGE>

================================================================================
                     AMD VICE PRESIDENT INCENTIVE PROGRAM
================================================================================

III. Plan Funding

     . The VPIP is funded by a maximum of three percent of AMD's adjusted
       Operating Income (OI)/1/, for any given Plan Year. In the aggregate, if
       calculated bonuses exceed the 3 percent limit, each Participant's bonus
       will be scaled back to conform.
     . Bonuses will not be paid for any Plan Year in which OI is less than or
       equal to $0.
     . LTP bonuses generated but not paid due to the above funding limitations
       will be carried over for possible payout in future Plan years. (See
       provisions under section V.)

IV. Short Term Plan (STP)

    The STP uses three different components to measure and reward the
    Participant's annual contributions: Corporate, Division and Individual.

    The payout opportunity and weight of each component vary depending upon the
    Participant's role and the tier to which he/she is assigned by management.
    The weighting for Participants with Product Line or Manufacturing
    responsibility emphasizes Division Performance.

    A. Corporate Performance Bonus (CPB)

       The CPB is generated when specific levels of adjusted OI/1/ and EVA
       Improvement are achieved relative to the business plan. The OI portion
       has a weighting of 70%, while the EVA Improvement portion has a weighting
       of 30%.  Target multipliers are derived as follows:

    Table II

<TABLE>
<CAPTION>
                                                           -------------------------------------------------------------------------
                                                                                       Performance Level
                                                           -------------------------------------------------------------------------
                                                                Threshold           Target (1.0 Multiplier)          2.0 Multiplier
       -----------------------------------------------------------------------------------------------------------------------------
       <S>                             <C>                 <C>                      <C>                              <C>
         Operating Income              70% Weighting       25% Of Prior Year OI          100% Of Plan                 125% Of Plan
       -----------------------------------------------------------------------------------------------------------------------------
         Eva Improvement               30% Weighting           25% Of Plan               100% Of Plan                 125% Of Plan
       -----------------------------------------------------------------------------------------------------------------------------
</TABLE>

______________________
/1/ Adjusted Operating Income (OI), referred to as "OI" throughout the plan
document, is OI as reported in the GAAP profit and loss statement, adjusted for
pre-tax income/loss from FASL.

                                                                               2
<PAGE>

================================================================================
                     AMD VICE PRESIDENT INCENTIVE PROGRAM
===============================================================================

        For example, if Actual OI equals planned OI for the year, the resulting
        OI multiplier would be 1.0. If Actual EVA Improvement equals 125% of
        planned EVA Improvement, the EVA Improvement multiplier would be 2.0.

        The combined CPB Target Multiplier is calculated as follows:

        ------------------------------------------------------------------------
        (OI Multiplier x 70%) + (EVA Multiplier x 30%) = Combined CPB Multiplier
        ------------------------------------------------------------------------

        So, in our example, the Combined CPB Multiplier would be 1.3:

                  ---------------------------------------------
                        (1.0 x 70%) + (2.0 x 30%) = 1.3
                  ---------------------------------------------

        Formulas generate target multipliers for actual performance falling
        outside of or between the parameters in Table II. While either
        multiplier can exceed two (2.0) individually, the maximum combined CPB
        multiplier, and thus the maximum CPB award, is two (2.0) times the CPB
        target amount.

        The actual CPB is calculated as follows:

          ----------------------------------------------------------------
             Combined CPB Multiplier x CPB Target % x Base Salary = CPB
          ----------------------------------------------------------------

     B. Division Performance Bonus (DPB)

        The DPB, unless otherwise specified, depends on division Sales and
        Operating Profit (OP) performance against plan for the division(s)
        supported by the participant. Target multipliers are derived as follows:

     Table III

<TABLE>
<CAPTION>
                                                                       -----------------------------------------------------------
                                                                                          Performance Level
                                                                       -----------------------------------------------------------
                                                                                                Target
                                                                          Threshold        (1.0 Multiplier)       2.0 Multiplier
        --------------------------------------------------------------------------------------------------------------------------
        <S>                         <C>                                <C>                 <C>                    <C>
                                         Actual Sales
          Sales Success                  -------------                       80%                 100%                 -135%
                                         Planned Sales
        --------------------------------------------------------------------------------------------------------------------------
                                    Actual OP - Planned OP
          Profit Success/2/         ----------------------                   -3%                   0%                    6%
                                        Planned Sales
        --------------------------------------------------------------------------------------------------------------------------
</TABLE>

_____________________
/2/ Operating Profit performance is related to Planned Sales to allow for a DPB
payout if reasonable profits are maintained relative to the original sales plan,
even though actual sales may have fluctuated.

                                                                               3
<PAGE>

================================================================================
                     AMD VICE PRESIDENT INCENTIVE PROGRAM
================================================================================

        For example, if Actual Sales are equal to Planned Sales, the resulting
        Sales Success Multiplier is 1.0.  If the difference between Actual OP
        and Planned OP as a percent of Planned Sales is 6%, the Profit Success
        multiplier is 2.0.

        The Combined DPB Target Multiplier is calculated as follows:

             -------------------------------------------------------------------
                    Sales Success Multiplier x Profit Success Multiplier =
                                 Combined DPB Multiplier
             -------------------------------------------------------------------

        So, in our example, the Combined DPB Target Multiplier is 2.0:

                         ------------------------------
                               (1.0 x 2.0) = 2.0
                         ------------------------------

        We use Pretax OP from the Economic Profit and Loss statement to
        calculate actual and planned profit success. Planned Division Sales and
        Planned Division OP are the numbers approved by the Board of Directors
        as part of the business plan for the Plan Year.

        Formulas generate target multipliers for actual performance falling
        outside of or between the parameters in Table III. The threshold
        performance level for both factors must be met in order for a bonus to
        be generated. While either multiplier can exceed two (2.0) individually,
        the maximum combined DPB multiplier, and thus the maximum DPB award, is
        two (2.0) times the DPB target amount.

        Table IV displays combined DPB Multipliers resulting from various Sales
        Success and Profit Success Factors. Formulas are used to calculate
        values falling between those shown.

             Table IV

                            Sample DPB Multipliers

<TABLE>
<CAPTION>
          -----------------------------------------------------------------------------------------
                                                         SALES SUCCESS %
                               *80       80      90       100      110      120       130      140
                             ----------------------------------------------------------------------
          <S>                <C>       <C>      <C>      <C>      <C>      <C>       <C>      <C>
          PROFIT SUCCESS%
               *-3            0.000    0.000    0.000    0.000    0.000    0.000     0.000    0.000
                -3            0.000    0.200    0.350    0.500    0.650    0.800     0.950    1.100

                -1            0.000    0.333    0.583    0.833    1.083    1.333     1.583    1.833

                 0            0.000    0.400    0.700    1.000    1.300    1.600     1.900    2.000

                 1            0.000    0.467    0.817    1.167    1.517    1.867     2.000    2.000
                 3            0.000    0.600    1.050    1.500    1.950    2.000     2.000    2.000
                 5            0.000    0.733    1.283    1.834    2.000    2.000     2.000    2.000
                 7            0.000    0.867    1.517    2.000    2.000    2.000     2.000    2.000
                 9            0.000    1.000    1.750    2.000    2.000    2.000     2.000    2.000
                             ----------------------------------------------------------------------
</TABLE>

* Less than.

                                                                               4
<PAGE>

================================================================================
                     AMD VICE PRESIDENT INCENTIVE PROGRAM
================================================================================

     The actual DPB is calculated as follows:

        --------------------------------------------------------------
          Combined DPB Multiplier x DPB Target % x Base Salary = DPB
        --------------------------------------------------------------

     For Participants in a corporate role, a weighted average DPB multiplier is
     calculated using planned sales at the group level. Similarly, Participants
     assigned to multiple divisions or groups have a weighted average DPB
     multiplier.

C.   Individual Performance Bonus (IPB)

     Officers and Group Vice Presidents establish individual performance
     expectations for each Participant reporting to them. These expectations
     might include specific division goals such as product releases, financial
     targets and organizational development. The Officer/Group VP then assesses
     performance against these expectations and an IPB is recommended. The IPB
     target and maximum are 10 percent and 20 percent of base salary,
     respectively, for all Participants. However executive management may adjust
     the average target percent in any given Plan Year based on the performance
     of the Company.

     Typical guidelines are outlined in Table V:

             Table V

                                IPB Guidelines
           -----------------------------------------------------
                                                        IPB
                 Performance                        Percentage
                  Assessment                           Range
           -----------------------------------------------------
                 Exceptional                          16 - 20%
                  Successful                           8 - 16%
                Most Goals Met                         4 - 8%
             Improvement Required                        0%
           -----------------------------------------------------

D.   STP Bonus Calculation

     The total STP bonus is calculated as follows:

                   -----------------------------------------
                          STP Bonus = CPB + DPB + IPB
                   -----------------------------------------

                                                                               5
<PAGE>

================================================================================
                     AMD VICE PRESIDENT INCENTIVE PROGRAM
================================================================================

V.   Long-Term Plan (LTP)

     The LTP rewards sustained corporate performance for both ROE and sales
     growth relative to competitive measures over a rolling three-year period.
     The LTP has an annual target bonus of 30% of base salary and a maximum
     opportunity of 60% for all Participants, subject to proration provisions in
     Section VII. The model below illustrates the LTP cycles.

                       Long-Term Performance Plan Model

                             [GRAPH APPEARS HERE]

     A. LTP Plan Components

        Specifically, the LTP is comprised as follows:
        . ROE Component: compares AMD's three-year ROE against the three-year
          ROE for the S&P 500.
        . Sales Component: compares the difference between AMD's three-year
          sales growth and the three-year semiconductor industry sales growth,
          as published by Worldwide Semiconductor Trade Statistics (WSTS)/3/.

        Target multipliers are derived as follows in Table VI:

___________________
/3/ Semiconductor industry data may be modified to be more representative of
AMD's product offerings. For instance, the DRAM market segment may be excluded
from the Total Semiconductor Sales data.

                                                                               6
<PAGE>

================================================================================
                     AMD VICE PRESIDENT INCENTIVE PROGRAM
================================================================================

     Table VI

<TABLE>
<CAPTION>
                                                            -----------------------------------------------------------------------
                                                                                      Performance Level
                                                            ------------------------------------------------------------------------
                                                                                         Target                  Maximum
                                                               Threshold            (1.0 Multiplier)         (2.0 Multiplier)
     -------------------------------------------------------------------------------------------------------------------------------
     <S>                      <C>                           <C>                     <C>                      <C>
                              AMD ROE minus S&P
       Roe Component                                              -6%                       0                      6%
                              500 ROE (3-year)
     -------------------------------------------------------------------------------------------------------------------------------
                              AMD Sales Growth %
       Sales Component         minus WSTS Sales                  -30%                       0                     20%
                              Growth % (3-year)
     -------------------------------------------------------------------------------------------------------------------------------
</TABLE>

          For example, if AMD's 3-year ROE is 10% and the S&P ROE is 10%, a
          multiplier of 1.0 is generated for the ROE component. If AMD's 3-year
          Sales Growth is 30% and the WSTS Sales Growth is 10%, a multiplier of
          2.0 is generated for the Sales component.

          Then, the Combined LTP Target Multiplier is calculated:

          -----------------------------------------------------------
             ROE Component Multiplier x Sales Component Multiplier
                      =  Combined LTP Multiplier
          -----------------------------------------------------------

          So, in our example, the Combined LTP Multiplier is 2.0:

                            -----------------------
                               (1.0 x 2.0) = 2.0
                            -----------------------

          The threshold performance level for both factors must be met in order
          for an LTP bonus to be possible. Formulas generate multipliers for
          actual performance falling between the parameters on Table VI. The
          maximum multiplier when both factors are combined is two (2.0).

          Table VII displays combined LTP Multipliers resulting from various ROE
          and Sales Growth performance levels. Formulas are used to calculate
          values falling between those shown.

                                                                               7
<PAGE>

================================================================================
                     AMD VICE PRESIDENT INCENTIVE PROGRAM
================================================================================

       Table VII

                            Sample LTP Multipliers
<TABLE>
<CAPTION>
                              --------------------------------------------------------------------------------
                                                                 AMD ROE less S&P 500 ROE (3-year)

                                                        -6      -4        -2      0      2       4       6
                                                     ---------------------------------------------------------
                              <S>                    <C>        <C>     <C>     <C>     <C>     <C>     <C>
                              AMD Sales Growth %
                               less WSTS Sales
                              Growth % (3-year)
                                     -30                0.000   0.000   0.000   0.000   0.000   0.000   0.000
                                     -20                0.000   0.111   0.222   0.333   0.445   0.556   0.667
                                     -10                0.000   0.222   0.444   0.667   0.889   1.111   1.334
                                       0                0.000   0.333   0.667   1.000   1.333   1.667   2.000
                                      10                0.000   0.500   1.000   1.500   2.000   2.000   2.000
                                      20                0.000   0.666   1.333   2.000   2.000   2.000   2.000
                              --------------------------------------------------------------------------------
</TABLE>

          B.   LTP Bonus Calculation

               The LTP bonus is calculated as follows:

                ----------------------------------------------------------------
                 Combined LTP Multiplier x LTP Target (30%) x Base Salary = LTP
                ----------------------------------------------------------------

          C.   LTP Carry-Over Provision

               In the event an LTP bonus is calculated but all or a portion is
               not paid due to the OI funding limitations (see Section III),
               that amount will be carried over for up to three following Plan
               Years. Carry-over bonus amounts will be paid at the earliest
               possible payout date (on a first in, first out basis) during the
               three-year carryover period, subject to the three percent maximum
               payout cap and other eligibility provisions. Any amount carried
               over but not payable during the three-year carry-over period
               reverts to zero.

               The Vice President must be an active Plan participant in the year
               a carry-over amount is applied in order to be eligible to receive
               it.

VI.  Timing of Payouts

     Bonuses are paid out by the end of the first quarter following the close of
     a Plan Year.

                                                                               8
<PAGE>

================================================================================
                     AMD VICE PRESIDENT INCENTIVE PROGRAM
================================================================================

VII. Eligibility For Participation And Receipt Of Bonuses

     A.   Unless otherwise determined by the CEO, all non-Sales Vice Presidents
          are Participants in the VPIP. This includes Sr. Vice Presidents and
          Group Vice Presidents.

     B.   To be eligible to receive any bonus under the VPIP, a Participant must
          be employed by AMD at the time of payout of the bonus.

     C.   To be eligible to receive an STP bonus of any amount, a Participant
          must have been actively employed in the VPIP for at least some portion
          of the Plan Year. A Participant who is actively employed for less than
          an entire Plan Year (i.e., became a participant mid-year or was on an
          unpaid leave), and who is otherwise eligible to receive an STP bonus
          for that Plan Year, will receive an STP bonus, prorated according to
          the number of months of active employment in the 12-month STP Plan
          Year. For purposes of this provision, a full month's credit will be
          given where the Participant was actively employed in the VPIP for at
          least 15 days of a partial month.

     D.   To be eligible to receive an LTP bonus of any amount, a Participant
          must have been actively employed in the VPIP for at least 12 months. A
          Participant who is actively employed for less than an entire three-
          year LTP bonus period (i.e., became a Participant at some time during
          the period, or was on an unpaid leave), and who is otherwise eligible
          to receive an LTP bonus, will receive an LTP bonus, prorated according
          to the number of months of active employment out of the 36-month LTP
          bonus period. For purposes of this provision, a full month's credit
          will be given where the Participant was actively employed for at least
          15 days of a partial month.

     E.   If a Participant dies during the Plan period, any VPIP bonus will be
          paid in full so long as the Participant was on active status for at
          least 6 months of the Plan Year. If active for less than 6 months, any
          award generated at the end of the year will be prorated as above.
          Bonus payments will be made to the designated recipient of the
          Participant's final paycheck.

                                                                               9
<PAGE>

================================================================================
                     AMD VICE PRESIDENT INCENTIVE PROGRAM
================================================================================

      F.  Payment to a Participant of any calculated bonus for which the
          Participant is otherwise eligible is contingent upon that
          Participant's sustained satisfactory performance during the Plan
          period for which the bonus was calculated, as determined by the
          Participant's immediate superior.

      G.  No Participant has any earned or vested entitlement to any bonus(es)
          under the VPIP. Any and all bonus payments are made at the sole
          discretion of the Chief Executive Officer.

      H.  AMD reserves the right to retroactively or prospectively modify or
          terminate the VPIP, in whole or in part, and AMD reserves the right to
          deny the participation of, or payout of a bonus to, a Participant, at
          its sole discretion, with or without notice or cause.

VIII. Other Important Plan Provisions

      A.  Base Salary is defined as the Participant's annualized base pay rate
          at the end of the Plan Year. For the LTP bonus, the annualized base
          pay rate at the end of Plan Year three will be the basis for bonus
          determination.

      B.  Operating Income, for Plan purposes, is adjusted for pre-tax
          income/loss from FASL. This is otherwise referred to as Operating
          Profit on the Non-GAAP profit and loss statement.

      C.  Because Year 3 LTP bonus calculations may be based on the closest WSTS
          and/or S&P 500 estimate at the time of payout, adjustments (positive
          or negative) may be made as soon as possible following availability of
          actual data.

      D.  No allowance will be made for factors beyond the control of
          Participants that either adversely or favorably affect the Company's
          performance.

                                                                              10

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