Document:

The Employment Agreement

 Exhibit 10.1 
 EMPLOYMENT AGREEMENT 
 BY AND AMONG 
 HERITAGE FINANCIAL CORPORATION, 
 HERITAGE BANK, 
 CENTRAL VALLEY BANK, 
 AND

 BRIAN L. VANCE 
 THIS EMPLOYMENT
AGREEMENT is made and entered into effective this 1st day of October 2006, by and between HERITAGE FINANCIAL CORPORATION, a Washington corporation (the “Company”), HERITAGE BANK, a Washington banking corporation (“Heritage
Bank”), CENTRAL VALLEY BANK, a Washington banking corporation (“CV Bank”), and BRIAN L. VANCE (“Executive”). 
 RECITALS 
  

	1.	The Company is the parent corporation of Heritage Bank and Central Valley Bank. The Banks are first tier wholly owned subsidiaries of the Company. 

  

	2.	Executive is the President and Chief Executive Officer and a board member of the Company and Heritage Bank and Vice Chairman of the Board of Directors and Chief Executive Officer of
CV Bank (hereinafter, the Company, Heritage Bank, and CV Bank are collectively referred to as the “Employer”), and has developed an intimate and thorough knowledge of Employer’s business methods and operations.

  

	3.	The retention of the Executive’s services for and on behalf of the Employer is of material importance to the preservation and enhancement of the value of the Employer’s
business. 

 In consideration of the mutual promises made in this Agreement, the parties agree as follows: 
 AGREEMENT 
  

	1.	EMPLOYMENT. 

 Employer hereby employs Executive and
Executive hereby accepts employment with Employer on the terms and conditions set forth in this Agreement. 
  

	2.	TERM. 

 The original term of this Agreement will
commence as of the date first above written and will continue until September 30, 2009, after which time this Agreement will automatically renew for additional terms of one year each. Subject to the terms and conditions set forth 

 
below, this Agreement may be terminated by either party by giving written notice to the other party at least one year prior to the expiration date of the
original term or any renewal term. 
  

	3.	DUTIES. 

  

	 	3.1	Executive will be the President and Chief Executive Officer of the Company, Heritage Bank, and CV Bank and maintain such other positions with subsidiaries or affiliates as the
respective Boards of Directors of the Company, Heritage Bank, and CV Bank (collectively, the “Board”) shall determine. In such capacities, Executive will render those executive management services and perform those tasks in connection with
the affairs of the Employer which are normal and customary to the positions assigned and shall perform the essential functions and other responsibilities and maintain the level of education, skill, and experience as set forth on the Position
Description in Exhibit “A” attached hereto and included herein by reference. Executive will be the person to whom all other officers of the Company and, as appropriate, subsidiaries or affiliates of Employer, shall report.

  

	 	3.2	Executive will perform such other duties as may be appropriate to his office and as may be prescribed from time to time by the Board. Executive may delegate such duties as he sees
fit to other junior officer(s) of the Employer. 

  

	 	3.3	Executive will devote his best efforts and all necessary time, attention, and effort to the business and affairs of the Employer and any affiliated companies as such business and
affairs now exist or hereafter may be changed or supplemented, in order to properly discharge his responsibilities under this Agreement. 

  

	4.	SALARY, BONUS, AND OTHER COMPENSATION. 

  

	 	4.1	Base Salary. 

  

	 	4.1.1	During the term of this Agreement, Employer will pay to Executive an annual base salary of not less than $200,000 per year effective beginning on October 1, 2006. Payment of
such salary will be made in accordance with Employer’s normal payroll practices applicable to senior executives and will be subject to required withholding for federal income tax and other purposes. 

  

	 	4.1.2	The Company will guarantee payment of any portion of Executive’s compensation that may be allocated to the Banks or any other subsidiary or affiliate of the Company.

  

	 	4.1.3	If this Agreement terminates prior to the end of the original or any renewal term, then Employer will pay Executive such amount of Executive’s then-current annual base salary
as is provided in Section 5. 

	 	4.2	Bonus. During the term of this Agreement, Executive will be eligible to participate in Employer’s Management Incentive Plan or any successor compensation plan for senior
management of Employer as may be established by the Board or the Employer’s Compensation Committee, which plan shall include specific performance targets, as the same shall be determined and/or amended on an annual basis by the Board or
Employer’s Compensation Committee. 

  

	 	4.3	Benefits. In addition to the base salary and bonus payable to Executive pursuant to this Section 4, Executive will be entitled to the following benefits, which shall not
be less than those provided in benefit programs generally maintained for senior executives of the Employer: 

  

	 	4.3.1	Participation in health insurance, disability insurance, and other health and welfare benefit programs generally available to senior executives; 

  

	 	4.3.2	Participation in retirement plans, including defined contribution and 401(k) Plans and any supplements or additions to those plans; 

  

	 	4.3.3	Participation in stock bonus or stock option plans generally available to senior executives of the Employer; 

  

	 	4.3.4	Other employment benefits, as may be approved from time to time by Employer; 

  

	 	4.3.5	Memberships in clubs as deemed appropriate; 

  

	 	4.3.6	Reimbursement for Executive’s reasonable expenses incurred in promoting the business of Employer. Executive shall present from time to time itemized accounts of any such
expenses, within limits of Employer policy and the rules and regulations of the Internal Revenue Service; and 

  

	 	4.3.7	An automobile furnished by the Bank under the same terms as an automobile is provided to Executive on the effective date of this Agreement. 

  

	5.	TERMINATION OF AGREEMENT. 

  

	 	5.1	Early Termination. 

  

	 	5.1.1	 This Agreement may be terminated at any time by either the Company or Executive and shall terminate automatically upon Executive’s death or Disability (as
defined in Section 8). No termination by the Company other than termination for Cause (as defined below) shall prejudice the 

	 	 
Executive’s right to compensation or other benefits under this Agreement. 

  

	 	5.1.2	Except as provided in Section 6 with respect to a Change of Control, if Executive voluntarily terminates his employment effective before the end of the original or any renewal
term without “Good Reason” as defined in section 8 Executive will be entitled to such compensation and benefits as he would have the right to receive upon termination for Cause under subsection 5.1.4, and Executive’s unvested stock
options, if any, shall terminate in the manner provided in such subsection. 

  

	 	5.1.3	Except in the event of a Change of Control as provided in Section 6, if (i) Employer terminates this Agreement without Cause or (ii) Executive terminates this
Agreement for Good Reason, and either termination is effective before the end of the original or any renewal term, Employer shall pay Executive upon the effective date of such termination all salary and benefits earned and all reimbursable expenses
incurred through such termination date and, in addition, a severance benefit in an amount equal to the greater of one times the amount of his then-current base annual salary, or the amount of such salary which would otherwise have been paid to
Executive during the then-remaining term of the Agreement. In such event, all forfeiture provisions regarding restricted stock awards or vesting requirements regarding options shall lapse or be considered completed as of the effective date of
termination. 

  

	 	5.1.4	If Employer terminates this Agreement for Cause effective before the end of the original or any renewal term, Employer shall pay Executive upon the effective date of such
termination only such salary earned and expenses reimbursable hereunder incurred through such termination date. Executive shall have no right to receive compensation or other benefits for any period after termination for Cause, and in the case of
termination for Cause before the effective date of a Change of Control, Executive’s unvested stock options, if any, shall terminate immediately. 

  

	 	5.1.5	In the event of termination of this Agreement by reason of Executive’s death or Disability, Employer shall pay Executive only such salary earned and expenses reimbursable
hereunder incurred through upon the date of Executive’s death or the effective date of Executive’s Disability, and all forfeiture provisions regarding restricted stock awards or vesting requirements concerning options shall lapse or be
considered completed, as applicable. 

  

	 	5.1.6	 The Board, acting in good faith, shall make the final determination of whether Executive is suffering under any Disability and, for purposes of making such
determination, may require Executive to submit himself to a physical examination by a physician mutually agreed upon by 

	 	 
Executive and the Company Board at Employer’s expense. For purposes of this Agreement, the date of such determination shall constitute the effective
date of such Disability. 

  

	 	5.2	Exercise of Stock Options. Executive’s rights to vested but unexercised stock options will continue for a period of one year after early termination (provided that the
terms of any option grant agreement shall not be extended by this provision), except in the case of a termination for Cause pursuant to Section 5.1.4 or without Good Reason pursuant to Section 5.1.2. 

  

	6.	CHANGE OF CONTROL. 

  

	 	6.1	Benefits. The parties recognize that a “Change of Control,” as defined below, could be detrimental to Executive’s continued employment. Accordingly, in order
to give further consideration to the Executive to enter into this Agreement, if there is a Change of Control and either (a) within 365 days following the effective date of such Change of Control Executive or Employer (or its successor)
terminates Executive’s employment; or (b) at any time from and after 180 days prior to the public announcement by Employer or any other party of the transaction which will result in the Change of Control, Employer (or its successor)
terminates Executive’s employment without Cause, then Executive, upon the date of termination of his employment, subject to the remaining provisions of this Section 6.1, shall be paid by Employer (or its successor) a severance benefit in
an amount equal to the greater of two times the amount of his then-current base annual salary or the amount of such salary which would otherwise have been paid to Executive during the then-remaining term of this Agreement, and vesting of all stock
options and lapse of all restrictions with respect to restricted stock awards shall occur. As a condition to receipt of the benefits described in this Section 6, upon request by the Company Board, Executive will not voluntarily terminate his
employment with Employer until after the effective date of the Change of Control in order to assist the Bank and the Company in evaluating and effectuating the Change of Control. 

  

	 	6.2	Reimbursement. In the event the provisions of this Section 6 result in imposition of a tax on Executive under the provisions of Internal Revenue Code Section 4999,
Employer agrees to reimburse Executive for the same, exclusive of any tax imposed by reason of receipt of reimbursement under this Section 6.2. 

  

	7.	RESTRICTIVE COVENANT. 

  

	 	7.1	 Noncompetition. Executive agrees that except as otherwise set forth in this Agreement, he will not during the term of this Agreement and for a period of two
years after his termination, directly or indirectly, become interested in, as principal shareholder, director, or officer, any financial institution that competes with Employer or its successor or any of its affiliates within the State of
Washington, provided that such covenant shall not apply in the event that 

	 	 
Executive’s employment is terminated without Cause or for Good Reason. The provisions restricting competition by Executive may be waived by action of
the Board. Executive recognizes and agrees that any breach of this covenant by Executive will cause immediate and irreparable injury to Employer, and Executive hereby authorizes recourse by Employer to injunction and/or specific performance, as well
as to other legal or equitable remedies to which Employer may be entitled. 

  

	 	7.2	Noninterference. During the noncompetition period described in Section 7.1, Executive shall not solicit or attempt to solicit any other employee of Employer or its
affiliates to leave the employ of those companies or in any way interfere with the relationship between Employer and any other employee of Employer. 

  

	 	7.3	Interpretation. If a court or any other administrative body with jurisdiction over a dispute related to this Agreement should determine that the restrictive covenant set
forth above is unreasonably broad, the parties hereby authorize said court or administrative body to narrow same so as to make it reasonable, given all relevant circumstances, and to enforce same. The covenants in this paragraph shall survive
termination of this Agreement. 

  

	8.	DEFINITIONS. 

  

	 	8.1	Cause. “Cause” shall mean only (i) willful misfeasance or gross negligence in the performance of his duties, (ii) conduct demonstrably and significantly
harmful to the Company (which would include willful violation of any final cease and desist order applicable to Employer or a financial institution subsidiary), or (iii) conviction of a felony. 

  

	 	8.2	Change of Control. “Change of Control” shall mean the occurrence of one or more of the following events: 

  

	 	8.2.1	One person or entity acquiring or otherwise becoming the owner of twenty-five percent (25%) or more of the Company’s outstanding common stock. 

  

	 	8.2.2	Replacement of incumbent directors or election of newly- elected directors constituting a majority of the Board of the Company where such replacement or election has not been
supported by the Board. 

  

	 	8.2.3	Dissolution, or sale of fifty percent (50%) or more in value of the assets, of either the Company or the Bank. 

  

	 	8.2.4	The merger of the Company into any corporation, twenty- five percent (25%) or more of the outstanding common stock of which is owned by other than owners of the common stock of
the Company prior to such merger. 

	 	8.3	Disability. “Disability” shall mean a medically reimbursable physical or mental impairment that may be expected to result in death, or to be of long, continued
duration, and that renders Executive incapable of performing the duties required under this Agreement. 

  

	 	8.4	Good Reason. “Good Reason” shall mean (i) termination by Executive as a result of any material breach of this Agreement by Employer, (ii) termination by
Executive or Employer following a Change of Control pursuant to Section 6.1, (iii) Any reduction of Executive’s salary or any reduction or elimination of any compensation or benefit plan, which reduction or elimination is not of
general application to substantially all employees of the Bank or such employees of any successor entity or of any entity in control of the Bank, or (iv) the assignment to Executive of any authority or duties substantially inconsistent with
Executive’s position. 

  

	9.	MISCELLANEOUS. 

  

	 	9.1	This Agreement contains the entire agreement between the parties with respect to Executive’s employment with Employer and his covenant not to compete with Employer, and is
subject to modification or amendment only upon amendment in writing signed by both parties. 

  

	 	9.2	This Agreement shall bind and inure to the benefit of the heirs, legal representatives, successors, and assigns of the parties. The provisions of Section 7.1 of this Agreement
are intended to confer upon Employer and any of its subsidiaries and affiliates the benefits of Executive’s covenant not to compete. 

  

	 	9.3	If any provision of this Agreement is invalid or otherwise unenforceable, all other provisions shall remain unaffected and shall be enforceable to the fullest extent permitted by
law. 

  

	 	9.4	Notwithstanding any other provision in this Agreement, Employer shall make no payment of any severance benefit provided for herein to the extent that such payment would be
prohibited by the provisions of Part 359 of the regulations of the Federal Deposit Insurance Corporation as the same may be amended from time to time, and if such payment is so prohibited, Employer shall use its best efforts to secure the consent of
the FDIC or other applicable banking agencies to make such payments in the highest amount permissible, up to the amount provided for in this Agreement. 

  

	 	9.5	 This Agreement is made with reference to and is intended to be construed in accordance with the laws of the State of Washington. Venue for any action arising out of
or concerning this Agreement shall lie in Thurston County, Washington. In the event of a dispute under this Agreement not involving injunctive relief, the dispute shall be arbitrated pursuant to the Superior Court 

	 	 
Mandatory Arbitration Rules (“MAR”) adopted by the Washington State Supreme Court, irrespective of the amount in controversy. This Agreement shall
be deemed as stipulation to that effect pursuant to MAR 1.2 and 8.1. The arbitrator, in his or her discretion, may award attorney’s fees to the prevailing party or parties. 

  

	 	9.6	This Agreement replaces any and all previous employment and severance agreements including the Severance Agreement between Heritage Savings Bank and Brian L. Vance dated
October 1, 1997. 

  

	 	9.7	Any notice required to be given under this Agreement to either party shall be given by personal service or by depositing a copy thereof in the United States registered or certified
mail, postage prepaid, addressed to the following address, or such other address as addressee shall designate in writing: 

  

			
	Employer:	  	 Heritage Bank
 201 5th Avenue S.W.
 Olympia, WA 98501
 Attn: Donald V. Rhodes, Chairman

	Executive:	  	 Brian L. Vance
 201 5th Avenue S.W.
 Olympia, WA 98501

 IN WITNESS WHEREOF, the parties have executed this Agreement effective on the date first above written. 
  

									
	HERITAGE FINANCIAL CORPORATION	 		 	HERITAGE BANK
					
	By:	 	/s/ Donald V. Rhodes	 		 	By:	 	/s/ Donald V. Rhodes
	Printed Name: Donald V. Rhodes	 		 	Printed Name: Donald V. Rhodes
	Title: Chairman	 		 	Title: Chairman
			
	 CENTRAL VALLEY BANK
	 		 	
					
	By:	 	/s/ Donald V. Rhodes	 		 		 	
	Printed Name: Donald V. Rhodes	 		 	
	Title: Chairman	 		 	
			
	 EXECUTIVE:
	 		 	
					
	  	 	/s/ Brian L. Vance	 		 		 	
	 Brian L. Vance
	 		 	

 Exhibit “A” 
 Position Description 
 For Brian L. Vance 
  

			
	POSITION:	  	PRESIDENT AND CHIEF EXECUTIVE OFFICER
		  	HERITAGE FINANCIAL CORPORATION
		  	PRESIDENT AND CHIEF EXECUTIVE OFFICER
		  	HERITAGE BANK
		  	VICE CHAIRMAN AND CHIEF EXECUTIVE OFFICER
		  	CENTRAL VALLEY BANK
		
	REPORTS TO:	  	BOARD OF DIRECTORS
		
	FLSA STATUS:	  	EXEMPT

 Essential Functions: 
  

	 	1.	Provides an exceptional level of customer service and customer satisfaction; enhancing and supporting the mission and vision statements of Heritage Financial Corporation and its
subsidiaries. Provides leadership and management to ensure that the mission and core values of the corporation are put into practice. Fosters a success oriented, accountable environment within the corporation. 

  

	 	2.	Serves as member of the Board of Directors of Heritage Financial Corporation, Heritage Bank, and Central Valley Bank. 

  

	 	3.	Coordinates the setting of the monthly agenda for Board meetings and the annual shareholder meetings with Heritage Financial Corporation Chairman and Heritage Bank CFO.

  

	 	4.	Performs duties as necessary to ensure continued safety and soundness of the corporation. 

  

	 	5.	Communicates directly to the Board of Directors advising them of key risk issues, financial performance and trends, market issues and trends, performance to Strategic Plan and all
applicable information to keep the Board well advised in all aspects of the corporation. 

  

	 	6.	Develops and recommends to the Board for approval the strategic vision for the corporation and for the management and overall profitability of the corporation. Establishes short,
medium, and long-term objectives and implement adequate operating plans to meet those objectives embedded in a viable business plan. 

  

	 	7.	Plans, leads, organizes, and controls corporate activities to minimize risk exposure, and to ensure that the corporation meets its long and short-term goals and objectives.

  

	 	8.	Maintains awareness of the latest technology, banking matters, regulatory developments, and competitive environment to provide guidance and planning to the Board of Directors as
well as officers and staff. 

	 	9.	Explores new markets for future locations, as well as seek strategic alliances/joint ventures to optimize and leverage the corporation’s position. 

  

	 	10.	Develops and recommends to the Board all capital management strategies, including stock and cash dividend policies to provide adequate capital levels to support the future growth of
the corporation and shareholder expectations. 

  

	 	11.	Oversees the corporation’s lending procedures to meet Board’s expectations of asset quality for the corporation. Approves major credits up to $6,000,000 and recommends for
Board approval loans above $6,000,000. 

  

	 	12.	Ensures that the corporation’s rules, policies, and procedures related to financial reporting, risk management, lending, operations, regulatory compliance, corporate
governance, etc. are complied with. 

  

	 	13.	Oversees the development, communication, and implementation of effective growth strategies and processes consistent with the Strategic Plan. 

  

	 	14.	Oversees shareholder relations including representing Heritage Financial Corporation at corporate, investor, and industry meetings in order to educate and generate market interest
in the corporation. 

  

	 	15.	Motivates and leads a high performance management team; attracts, recruits, and retains members of the executive team and lenders. 

  

	 	16.	Oversees the aggressive marketing of financial solutions with the goal of winning new clients and expanding existing relationships. Assists other officers with direct calls on
large, influential clients and important prospective clients. 

  

	 	17.	Represents the corporation and provides leadership in key community activities including business, charitable, civic, and social organizations. 

  

	 	18.	In the absence of the President of Central Valley Bank may temporarily act in his/her capacity until a permanent replacement is appointed. 

 Other Responsibilities: 
  

	 	1.	May be necessary to work long or extended hours. 

  

	 	2.	Must be able to travel within region and nationally to perform job duties and represent the corporation. 

 Education, Skills, and Experience: 
  

	 	1.	Ability to read, speak, and understand English well with effective written and oral business communication skills. Ability to make persuasive speeches and presentations on financial
or complex topics to the Board and outside investors. 

  

	 	2.	Prefer college degree in Business, Finance, or related field or applicable experience. 

  

	 	3.	A strategic visionary with sound technical skills, analytical ability, good judgment, and strong customer and growth focus. 

  

	 	4.	Ten years finance/commercial banking experience at executive level with a demonstrated ability to lead a team and expand profitability. 

  

	 	5.	Must have in-depth knowledge of and experience in Pacific Northwest markets, preferably the Puget Sound and Central Washington regions. 

	 	6.	Desired personal characteristics include: professional sophistication, political awareness, creativity, energy, self-directed, and balanced ego. 

  

	 	7.	Maintain a record of business development and participation in community activities. 

 Name:                                     
                                        
                    
Date:Offer Letter Agreement

 Exhibit 10.1 
 August 15, 2006 
 Dave Orton 
 Dear Dave, 
 As you are aware, ATI Technologies Inc. (“ATI”) intends to enter into an Acquisition Agreement with Advanced Micro Devices, Inc. (“AMD”) whereby AMD will acquire all of the
outstanding common shares of ATI (also known as the “Transaction”). The AMD/ATI team is pleased to offer you continuing employment after the closing date of the Transaction in the position of Executive Vice President, reporting to
Dirk Meyer, President and Chief Operating Officer. This offer letter outlines, among other things, the terms of your continuing employment with the AMD/ATI team following the closing of the Transaction. This Offer is contingent on approval by
AMD’s Board of Directors and effective only upon the closing of the Transaction, upon which this Offer will supersede any other ATI agreement with respect to your employment with ATI, including your Change in Control Agreement, and is
contingent upon your execution of the Non-competition Agreement between you and AMD. 
 Salary 
 Your initial bi-weekly salary will be $21,153.85 ($550,000 annualized). AMD has 26 biweekly pay periods per year.

 Benefits-Executive 
 You will continue to participate
in the benefits plans, including any executive plans, currently made available to you and continued by ATI, with the exception of the ATI 401(k) plan. Instead, upon the closing of the Transaction, you will be eligible to participate in the AMD
401(k) retirement savings plan with matching contributions. In addition, we anticipate that you will be eligible to participate in the AMD benefits, perquisites and profit sharing plan beginning in January 2007. 
 Corporate Bonus Plan 
 You will be eligible to participate in
AMD’s Corporate Bonus Plan (“Bonus Plan”), in accordance with the terms and conditions of the Bonus Plan. Your initial target bonus opportunity will be 100% of your Base Salary. Any amount which you may earn under the Bonus
Plan between the Closing Date and December 31, 2006 will be pro-rated and paid as a percentage of the Base Salary which you actually earn during this period. Target bonus opportunities are subject to review and may be adjusted, generally each
plan year. Your participation is subject to the terms and conditions of the attached Bonus Plan. 

 VP Long Term Incentive Plan 
 You will be eligible to participate in AMD’s Vice President Long Term Incentive Plan (“LTIP”). The LTIP is based on rolling 3-year revenue growth, relative to external benchmarks, and operating income margins. The target
payout under the long-term component is 30% of your Base Salary. The LTIP is prorated for less than 3 years of service. The terms and conditions of the LTIP, including target bonus opportunities, are subject to review and may be adjusted by
AMD. 
 Restricted Stock Units 
 Further, subject to the
approval by the Board of Directors, you will be granted 50,000 restricted stock units to vest 40% one year from the grant date, then an additional 5% at the end of each subsequent three month period until 100% vested four years from the
grant date, assuming continuous service. 
 Contribution Bonus 
 AMD/ATI believes that you are an important part of ensuring the future success of AMD/ATI and we would like to provide the following to you as a joining incentive for your anticipated contributions. We will provide you with two separate
cash bonuses, each equal to $412,500. The first bonus payment will be paid to you in the first payroll cycle after you complete one year of service with AMD/ATI and the second payment will be paid to you in the first payroll cycle after you
complete two years of service with AMD/ATI. Each payment is contingent upon your (1) active, full-time employment at the time of payment; and (2) satisfactory job performance. Each payment is subject to applicable taxes and withholdings.

 If applicable, your employment with AMD/ATI is contingent on AMD/ATI successfully obtaining an export license for you in accordance with BXA export
license regulations. 
 In accordance with the requirements of the Immigration Reform and Control Act of 1986, you will be required to provide AMD/ATI with
documents to verify your identity and your legal right to work in the United States. You must present this documentation on your first day of employment; to assist you, we will provide a list. 
 We look forward to a mutually productive working relationship and the opportunity to build the next great semiconductor company. As a new member of the AMD/ATI team, we
understand that joining a combined organization does represent change, which could include leadership changes. Therefore, should your employment terminate by mutual agreement from the role offered as Executive Vice President responsible for the ATI
Business Unit at AMD or should your employment be terminated without cause during your first 12 months of employment following the close of the Transaction, you will be provided with 24 months severance (the “Severance Period”). Should
your employment terminate by mutual agreement or without cause between your 13th and 24th month of employment following the close of the Transaction, the Severance Period will be reduced by one month for each month
of service completed during this period. For example, should your employment terminate during your 15th month of
employment, you will be provided 21 months of severance. 

 In all cases, this severance is subject to execution of a General Release in a form provided by AMD (and similar to the
release contained in your ATI Change in Control Agreement). This General Release would include a provision that should your employment terminate for reasons other than cause within the first 24 months of employment following the close of the
Transaction, your Non-Competition Agreement would expire the later of two years from the close of the Transaction or 12 months after your termination. 
 The
severance provided will include payment of your base salary and your Corporate Bonus at target, as well as pro-rated payment of your Contribution Bonus at target for the applicable fiscal period between the close of the Transaction date and your
termination. Additionally, you will be eligible for vesting of your prior granted ATI equity (converted into AMD equity) that would vest during the applicable Severance Period (as described above). This would not include newly granted,
post-close-of-transaction AMD equity that has not yet vested. You will also continue to be eligible for medical and dental insurance as arranged by AMD, as well as other legally mandated benefits. Finally you will be provided outplacement assistance
as arranged by AMD. 
 If this Offer is agreeable to you, please accept it by initialing each page, signing your name below and returning the original signed
and dated document to me in the enclosed envelope. 
 We look forward to having you as a member of our team and feel our association will be mutually
rewarding. The dedication, creative drive and loyalty of our employees have enabled us to impact the world through our technological advances in the microelectronics field. We are confident that you possess these qualities and that your
contributions to AMD/ATI will be significant and important to our future. 
 Sincerely,
  

	
	
	/s/ Dirk Meyer
	 Dirk Meyer
 President and Chief Operating
Officer
 AMD

	
	
	/s/ Kevin Lyman
	 Kevin Lyman
 Senior Vice President,
Corporate Human Resources
 AMD

  

 I am pleased to accept AMD/ATI’s Offer of employment as outlined above and in the
enclosed attachment(s). 
  

			
	 /s/ David Orton
	    	
	Signature	    	
		
	 September 21, 2006
	    	  

	Date Signed	    	Date of Birth (Month/Day/Year)*

	*	This information will be kept confidential and used only to generate your personnel number.

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