This excerpt taken from the AMD 10-K filed Feb 26, 2008.



3.1 Participant Compensation Deferrals. Each Participant may elect to defer a portion of his Compensation in accordance with this Section. Compensation not deferred by a Participant pursuant to this Section shall, for purposes of this Plan, be received by such Participant in cash.


  (a) General Rule. The amount of Compensation that an Eligible Employee may elect to defer is such Compensation earned on or after the time at which the Eligible Employee elects to defer in accordance with Section 2.1 and shall be a flat dollar amount or percentage, each of which shall not exceed fifty percent (50%) of the Eligible Employee’s Base Salary and/or one-hundred percent (100%) of the Eligible Employee’s incentive sales commissions and Bonuses, provided that the total amount deferred by a Participant shall be limited in any calendar year, if necessary, to satisfy Social Security Tax (including Medicare), income tax and employee benefit plan withholding requirements as determined in the sole and absolute discretion of the Committee.


  (1) A Participant’s initial election to defer Compensation shall be made prior to the end of his Initial Election Period and shall be effective with respect to Compensation received after such deferral election is processed.


  (2) A Participant’s election to defer Compensation for any Plan Year shall be made during the Election Period for the Plan Year and shall be irrevocable for such Plan Year.


  (b) Cancellation of Base Salary Deferral Election. A Participant may not cancel or modify his Compensation Deferral election applicable to a Plan Year at any time during a Plan Year.


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  (c) Crediting of Deferrals. Compensation Deferrals made by a Participant shall be credited to such Participant’s Deferral Account as of a date determined in accordance with procedures established from time to time by the Committee.


3.2 Company Contribution Account. The Committee shall establish and maintain a Company Contribution Account for each Participant under the Plan. As of any date or dates selected by the Company, the Company may credit a Participant’s Company Contribution Account with an amount of Company Matching Contributions and/or Company Discretionary Contributions, if any, which the Company in its sole discretion shall determine. Such credits may be made on behalf of some Participants but not others, and such credits may vary in amount among individual Participants. Each Participant’s Company Contribution Account shall be further divided into separate investment fund subaccounts corresponding to the investment fund elected by the Participant pursuant to Article V.


3.3. Funding. The Company may, but is not obligated to, establish a grantor trust of the Company with an institutional Trustee to set aside assets to fund its obligations under this Plan. Although the principal of the trust and any earnings thereon shall be held separate and apart from other funds of the Company and would be used exclusively for the uses and purposes of Plan Participants and Beneficiaries as set forth therein, neither the Participants nor their Beneficiaries would have any preferred claim on, or any beneficial ownership in, any assets of the trust prior to the time such assets are paid to the Participants or Beneficiaries as benefits and all rights created under this Plan shall be unsecured contractual rights of Plan Participants and Beneficiaries against the Company. Any assets held in a trust established by the Company to fund its obligations under this Plan will be subject to the claims of the Company’s general creditors under federal and state law in the event of insolvency as defined in applicable trust agreement.
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