Advanced Micro Devices Inc (AMD)

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Restricted Stock - Subject to the approval of the Compensation Committee 
     ---------------- 
     of our Board of Directors you will be granted 30,000 shares of restricted 
     stock with par value of $0.01 on your commencement date. 
       Vesting  
       ------- 
       30,000 shares of restricted stock 
             .  10,000 vest in mid July 2001 
             .  10,000 vest in mid July 2002 
             .  10,000 vest in mid July 2005 
  
 A sample vesting schedule is shown in Exhibit A.  Shares shown as granted in 
 2001 and beyond are intended to demonstrate how shares vest over time.

This is incredible compensation for an executive to receive. Does AMD buy these shares at market price, or do they simply dilute the stock by issuing more of them?