Document:

<PAGE>
                                                                    EXHIBIT 10.2

                           ETHANOL MARKETING AGREEMENT

This Ethanol Marketing Agreement ("Agreement") is made and entered into as the
22nd day of February 2005 by and between Aventine Renewable Energy, Inc., a
Delaware corporation ("AREI) and VeraSun Fort Dodge, LLC, a Delaware corporation
("VeraSun Fort Dodge").

In consideration of the mutual terms and conditions contained herein, the
Parties agree as follows:

1.   Terms and Termination

     A.   The term of this Agreement shall commence on the first day of ethanol
          sales and continue for a primary term ending March 31, 2007 and
          thereafter, renewing for consecutive two (2) year terms, unless
          terminated by either party at the end of the primary term or any or
          any subsequent two (2) year anniversary thereof with at least six (6)
          months prior written notice.

     B.   In addition, this Agreement may be terminated under the circumstances
          set out below.

          (1). Termination for Intentional Misconduct. If either party engages
               in intentional misconduct reasonably likely to result in
               significant adverse consequences to the other party, the party
               harmed or likely to be harmed by the intentional misconduct may
               terminate this Agreement immediately, upon written notice to the
               party engaging in the intentional misconduct.

          (2). Termination for Uncured Breach. If one of the parties breaches
               the terms of this Agreement, the other party may give the
               breaching party a notice in writing which specifically sets out
               the nature and extent of the breach, and the steps that must be
               taken to cure the breach. After receiving the written notice, the
               party will than have thirty (30) days to cure the breach, if the
               breaching does not involve a failure to make any payments which
               are required by this Agreement.

               If breach involves lack of payment beyond the established
               delinquency period, as specified in this Agreement, VeraSun Fort
               Dodge may terminate this Agreement immediately and without prior
               written notice.

          (3). Change of Control. Based on a change of majority interest in
               AREI, VeraSun Fort Dodge shall have six (6) months to terminate

                                        1

<PAGE>

               this Agreement following the receipt of written notice regarding
               such change of ownership. AREI must notify VeraSun Fort Dodge of
               said event in writing within two (2) weeks of event. VeraSun Fort
               Dodge may terminate Agreement with (30) days written notice
               within said six (6) month period.

          (4). Termination by Mutual Written Agreement. This Agreement may also
               be terminated upon any terms and under any condition, which are
               mutually agreed upon in writing by AREI and VeraSun Fort Dodge.

          (5). Termination by Bankruptcy, etc. This Agreement may also be
               terminated immediately and without prior notice by a party as a
               result of the other party's bankruptcy, assignment for the
               benefit of creditors, admission in writing of its inability to
               pay debts generally, or its liquidation, insolvency or
               dissolution.

2.   Quantity and Quality

     A.   VeraSun Fort Dodge shall sell to AREI the total output of fuel grade
          ethanol ("Ethanol") produced at the VeraSun Fort Dodge, Iowa, facility
          ("Plant"), currently anticipated to be one hundred (110) million
          gallons per year. Ethanol shall be delivered FOB the Plant, and title
          shall pass as the Ethanol is loaded into transport vessels.

     B.   Such Ethanol shall meet or exceed all industry standards, including
          but not limited to ASTM D.4806 specifications and Magellan Pipeline
          Company specifications for E-Grade Denatured Fuel Ethanol

     C.   Ethanol produced at the Plant and marketed by VeraSun Fort Dodge,
          directly or indirectly, to the E-85 fuel market is excluded from this
          Agreement.

3.   AREI shall:

     A.   Purchase all of the Ethanol produced by VeraSun Fort Dodge, at the
          price outlined in Section 5;

     B.   Remit payment to VeraSun Fort Dodge for the Ethanol as provided in
          Section 5: and

     C.   Schedule all loads with VeraSun Fort Dodge.

     D.   Extend any alliance volume buying power of discounting to VeraSun Fort
          Dodge.

     E.   Extend railcar freight rates negotiated by AREI to VeraSun Fort Dodge.

                                        2

<PAGE>

     F.   Participate with VeraSun Fort Dodge in a monthly sales strategy call.

4.   VeraSun Fort Dodge shall:

     A.   Provide to AREI quarterly production forecasts, monthly updates, daily
          plant inventory balances and shipment information;

     B.   Provide to AREI specifications and certificates of analysis of the
          Ethanol produced;

     C.   Provide for a minimum of eight days storage on the VeraSun Fort Dodge
          premises;

     D.   Have meters that provide both gross and net 60 degrees Fahrenheit
          temperature compensated gallons; and

     E.   Establish and participate in monthly sales strategy meetings with
          AREI.

5.   Pricing and Commission

     B.   Sales Price. The sale price VeraSun Fort Dodge shall receive for its
          Ethanol shall be the Pooled Net Price, as defined below.

               "Pooled Net Price" shall mean the net sales per gallon calculated
               by subtracting the Pooled Costs on a per gallon basis from the
               Alliance Ethanol Average Market Price.

               "Alliance Ethanol Average Market Price" shall mean the monthly
               average price received by AREI for Pooled Market Alliance Volumes
               sold during such month on a per gallon basis.

               "Pooled Market Alliance Volumes" shall mean, with respect to any
               given period, aggregate fuel grade ethanol volumes purchased by
               AREI from all sellers who have agreed to receive the Pooled Net
               Price and aggregate fuel grade ethanol volumes produced by AREI
               during such period.

               "Pooled Costs" shall mean, with respect to any given period, all
               direct costs incurred by AREI in handling Pooled Market Alliance
               Volumes during such period, including by not limited to terminal
               lease charges, throughput charges, terminal shrinkage costs,
               freight charges, tariffs, costs of leasing railcar and trucks,
               government taxes and assessments, insurance, inspection fees,
               inventory carrying costs, purchased ethanol cost incurred due to
               lost production and other such costs, but excluding direct costs
               incurred in marketing such ethanol. AREI shall use commercially
               reasonable efforts to contain Pooled Costs so as to maximize the
               ultimate net price payable to VeraSun Fort Dodge for its Ethanol.

                                        3

<PAGE>
     D.   Commission. AREI shall deduct from the Pooled Net Price a commission
          equal to (**) percent (**) of the Pooled Net Price. The total
          commission shall not exceed (**) for the first (**) gallons of ethanol
          produced and sold to AREI during each twelve (12) calendar month
          period commencing on December 1st of each calendar year (the "12 Month
          Period") under this Agreement and under that certain Ethanol Marketing
          Agreement between AREI and VeraSun Energy Corporation, dated February
          21, 2005 (the "Other Agreement"). If the total gallons of ethanol
          produced and sold to AREI during any 12 Month Period under this
          Agreement and the Other Agreement exceeds (**) gallons, the commission
          of (**) percent (**) shall be reduced to (**) percent (**) for all
          gallons of ethanol in excess of (**) gallons produced and sold to AREI
          during such 12 Month Period under this Agreement and the Other
          Agreement."

     C.   Payment. For all quantities of ethanol purchased by AREI from VeraSun
          Fort Dodge during a one-week period beginning on Monday and ending on
          the following Sunday, AREI shall pay the estimated Pooled Net Price
          referred to in Section 5.A. less commissions referred to in Section
          5.B., to VeraSun Fort Dodge by ACH or wire no later than ten (10)
          business days following the end of said one-week period. If at
          calendar month's end, the actual Pooled Net Price exceeds the
          estimated Pooled Net Price, AREI shall pay VeraSun Fort Dodge on or
          before the 15th day of the following calendar month an amount equal to
          the product of (x) the difference between the actual and estimated
          Pooled Net Price less commissions and (y) the aggregate quantity of
          Ethanol purchased during such month. AREI shall pay interest on any
          delinquent payments at the rate of nine percent (9%) per annum, for
          the duration of the delinquency. In addition, AREI shall reimburse
          VeraSun Fort Dodge for any attorney fees or other cost incurred by
          VeraSun Fort Dodge collecting delinquent amounts owed by AREI
          hereunder. AREI is considered in breath of this Agreement if the
          delinquency period extends beyond thirty (30) days.

     D.   Quarterly Meetings. VERASUN and AREI agree to hold quarterly meetings
          (by telephone or in person) to formulate a market outlook and
          perspective for the purpose of establishing pricing parameters and
          sales strategy for a given period (the "Guidelines"). For any period
          to which such Guidelines are agreed upon and apply, AREI agrees to use
          its commercially reasonable efforts to execute deals consistent with
          these guidelines and when possible AREI will solicit feedback from
          VERASUN before executing deals outside such Guidelines. AREI will, to
          the extent it deems it necessary or appropriate, utilize VERASUN to
          participate on customers calls.

                                        4

1) This confidential information has been omitted pursuant to a request for
   confidential treatment.

2) The material has been filed separately with the SEC.
<PAGE>

     E.   Supporting Records. AREI shall keep a set of accurate and complete
          books and records in accordance with generally accepting accounting
          principles with respect to all ethanol purchased and sold by AREI,
          including ethanol sold under AREI's Purchase and Resale business, and
          all costs and commissions associated therewith, and shall make such
          books and records reasonably available to mutually agreeable
          independent outside accounting representatives at AREI's office at
          anytime by appointment during normal business hours upon at least five
          (5) business days prior written notice; provided, however, there shall
          be no more than two such review of AREI's books and records in any
          twelve (12) month period and prior to such review the independent
          outside accounting representatives shall executive a mutually
          agreeable confidentiality agreement with AREI. AREI agrees to pay
          fifty percent (50%) of the expenses of such independent outside
          accounting representatives in conducting such review, provided that
          AREI's share of such expenses shall not exceed $15,000. All other
          costs and expenses of such review are the sole responsibility of
          VeraSun Fort Dodge. In addition, AREI shall provide VeraSun Fort
          Dodge, by e-mail or fax, a monthly report regarding Pooled Market
          Alliance Volumes, Alliance Ethanol Average Market Price, and a
          breakdown of Pooled Costs in sufficient detail to arrive at calculated
          Pooled Net Price.

In addition to the foregoing, set forth on Exhibit "A" attached hereto and
incorporated herein by reference, are the business guidelines and related
obligations AREI agrees to follow in managing its Purchase/Resale Program (as
defined in Exhibit "A") in conjunction with this Agreement.

6. Indemnity: AREI shall indemnify, defend, and hold VeraSun Fort Dodge and its
affiliates, subsidiaries, parents, directors, officers, employees, customers,
contractors, subcontractors and agents harmless from and against any an all
claims, losses, awards, judgments, settlements, fines, penalties, liabilities,
damages, costs or expenses (including reasonable Attorney's fees) alleged or
incurred on account or any injury to or death of persons or damages to property
or any other claim to the extent caused by or arising out of the negligence or
willful miscount of AREI, its officers, employees, customers, contractors,
subcontractors or agents.

VeraSun Fort Dodge shall indemnify, defend and hold AREI and its affiliates,
subsidiaries, parents, directors, officers, employees, and agent harmless from
and against any and all claims, losses, awards, judgments, settlements, fines,
penalties, liabilities, damages, costs or expenses (including reasonable
Attorney's fees) alleged or incurred on account of any injury to or death of
persons or damages to property or any other claim to the extent caused by or
arising out of the negligence or willful misconduct of VeraSun Fort Dodge, its
officers, employees, customers, agents, or contractors. VeraSun Fort Dodge shall
indemnify and hold AREI and its affiliates, subsidiaries, parents, directors,
officers, employees, customers and agents harmless from and against any and all
claims, losses, awards, judgments, settlements, fines, penalties, liabilities,
damages, costs or expenses (including reasonable Attorney's fees) from any
defects in the Ethanol caused by VeraSun Fort Dodge.

                                        5

<PAGE>

7. Independent Contractor: It is expressly understood that the relationship of
AREI to VeraSun Fort Dodge is that of an independent contractor and nothing
contained herein shall be construed to create any partnership, agency, or
employer/employee relationship. AREI may freely choose the customers from whom
business shall be solicited and the time and place for solicitation, except as
otherwise provided in this Agreement.

8. Notices: Any notices required to be given under this Agreement shall be in
writing and shall be deemed given upon personal delivery to the party to be
notified; on the third day after deposit with the United State Postal Service,
by registered or certified mail, postage prepaid; or upon confirmation if sent
by telex, facsimile machine or other means of telecommunication that transmits
or produces a written record of the message so sent. Notices shall be sent
addressed as follows:

     VeraSun Fort Dodge: VeraSun Fort Dodge, LLC
                         1930 Hayes Avenue
                         Fort Dodge, IA 50501
                         Attn: Donald Endres, CEO
                         Telephone: 515-955-7370

     AREI:               Aventine Renewable Energy, Inc.
                         P.O. Box 10
                         Pekin, IL 61555
                         Attn: Ronald Miller, President and CEO
                         Telephone: 309-347-9388
                         Fax: 309-347-8541

9. Insurance: The Parties shall maintain, at all times while this Agreement is
in effect, and each at its own sole cost and expense, comprehensive general
liability insurance with a combined single limit for bodily injury and property
damage of not less than $1,000,000 for any one occurrence. Each party shall
promptly after execution of this Agreement furnish the other party a Certificate
of Insurance evidencing the foregoing insurance coverage, and containing a
clause specifying that no reduction, cancellation or expiration of the policies
shall become effective until thirty (30) days from the date written notice is
provided to the other Party. The insurance requirements set forth herein are
minimum coverage requirements and are not to be constructed in any way as a
limitation on liability under this Agreement.

10. Entire Agreement: This Agreement contains the entire agreement between the
Parties and supersedes all previous agreements, either oral or written, between
the Parties. No modifications hereof shall be valid unless made in writing and
signed by both Parties.

11. Waiver: The failure of either Party to enforce any of its rights hereunder
on any particular occasion shall not constitute a waiver of such rights on any
subsequent occasion.

12. Assignment: This Agreement may not be assigned by either party without the
prior written consent of the other party, which consent shall not be
unreasonably withheld.

                                        6

<PAGE>

13. Headings: Any paragraph headings are used for convenience only and are not
intended and shall not be used in interpreting any provisions of this Agreement.

14. No Third Party Beneficiary: Except as otherwise provided herein, nothing
contained in this Agreement shall be considered or construed as conferring any
right or benefit on a person not a party to this Agreement and neither this
Agreement nor the performance hereunder shall be deemed to have created a joint
venture or partnership between the Parties.

15. Governing Law: This Agreement shall be governed by the laws of the State of
Illinois, without regard to the conflict of laws provisions thereof.

     In WITNESS WHEREOF, the Parties hereto have caused this Agreement to be
duly executed as of the date first written above.

Aventine Renewable Energy, Inc          VeraSun Fort Dodge, LLC

By: /s/ Ronald H. Miller                By: /s/ Bruce A. Jamerson
    ---------------------------------       ------------------------------------
    Ronald H. Miller, President & CEO       Bruce A. Jamerson, President & CFO

Date: 2/22/05                           Date: 3/11/05

                                        7

<PAGE>

                                   EXHIBIT "A"

1.   Commercial Objective: To the extent commercially feasible as determined in
     AREI's good faith judgment in accordance with the provisions of this
     Exhibit "A", AREI will not disadvantage the Pooled Net Price to be paid
     VeraSun Fort Dodge under the Agreement, as a result of its Purchase/Resale
     Program.

2.   Defined Terms

     "Alliance Partners" - shall mean the group of ethanol producers that have
     agreed to exclusively commit substantially all of their ethanol production
     to AREI for purposes of AREI marketing their ethanol.

     "Purchase/Resale Program" - shall mean the program administrated by AREI,
     independent of VeraSun Fort Dodge or other Alliance Partners, whereby AREI
     purchases ethanol from non-Alliance Partners for the purpose of selling to
     customers, independent of the Pooled Market Alliance Volume.

     "Contract Segment" - shall mean the type of ethanol contract used in
     selling ethanol. Contracts are segmented into the following categories:

          Fixed Contracts - whereby a buyer agrees to purchase a volume of
          ethanol from AREI at a particular time, over a period of time, for a
          fixed price;

          Spot - whereby a buyer agrees to buy a volume of ethanol from AREI at
          a specific time, or over a period of time, for a price that varies
          over the term of the contract and is based on a mutually agreed upon
          market index;

          Gas Plus - whereby a buyer agrees to buy a volume of ethanol from AREI
          at a particular time, or over a period of time, for a price that is
          determined by the sum of: a gasoline market index (e.g. NYMEX, CARE),
          plus a fixed amount. The gas plus segment is further segmented by the
          gasoline market index used in determining the price.

3.   Business Rules

     The following describes the business rules AREI will follow and the
     methodology AREI will employ to measure its performance against the
     commercial objective set forth above with contracts in effect and
     established after the date of this Agreement.

     A.   To the extent commercially feasible, AREI will attempt to maintain its
          total mix of Alliance Partner sales contracts, as follows:

<TABLE>
<CAPTION>
                          Target % of
                         Total Gallons
Contract Segment   Low        Sold       High
----------------   ---   -------------   ----
<S>                <C>   <C>             <C>
Fixed Price        20%         33%        55%
Gas Plus           20%         33%        45%
Spot               20%         33%        45%
</TABLE>

<PAGE>

     B.   Prior to entering into a contract for the sale of ethanol of a
          Contract Segment type specified in 3.A. above originating from the
          Purchase/Resale Program (a "New Resale Contract") AREI will compare
          the average netback price (on a cents per gallon basis) being realized
          from the sale of that portion of the Pooled Market Alliance Volumes
          being sold under then existing contracts of the same Contract Segment
          (with such average netback price to be calculated on the same basis as
          the Net Pooled Price, except limited to the specific Contract Segment
          type at issue) (herein the "Alliance Contract Segment Net Pooled
          Price") against the average net back price (on a cents per gallon
          basis before purchase/resale margin) being realized from the sale of
          that portion of the quantities of ethanol being purchased under the
          Purchase/Resale Program and being sold under then existing contracts
          of the same Contract Segment under the Purchase/Resale Program (with
          such average netback price to be calculated on a basis similar to that
          used in calculating the Net Pooled Price except using Purchase/Resale
          Program volumes rather than Pooled Market Alliance Volumes). Where a
          New Resale Contract will be a Gas Plus Contract Segment type, only
          contracts having the same gasoline index will be used in making the
          above comparison. Whenever possible and to the extent commercially
          feasible, AREI will only enter into a New Resale Contract of a
          particular Contract Segment type when the then existing
          Purchase/Resale Contract Segment Net Pooled Price before
          purchase/resale margin (after including such New Resale Contract) will
          be less than or equal to the then existing Alliance Contract Segment
          Net Pooled Price, both as determined on the basis of then existing
          contracts of the same Contract Segment type.

     C.   AREI may still enter into Purchase/Resale Program contracts for good
          commercial reasons.

4.   Reporting

     AREI will monitor the activities set forth in 3. above and report monthly
     by Contract Segment to VeraSun Fort Dodge on:

     -    Alliance Ethanol Average Market Price

     -    Breakdown of Pooled Costs

     -    Pooled Net Price

     -    Pooled Market Alliance Volumes

     -    Average Purchase/Resale Market Price

     -    Breakdown of Purchase/Resale Costs

     -    Average Purchase/Resale Net Price Before Margin

     -    Purchase/Resale Volume

     -    Differences by Contract Segment of Alliance Ethanol Average Market
          Price and Pooled Net Price compared to Average Purchase/Resale Market
          Price and Average Purchase/Resale Net Price

5.   Revisions

     - AREI shall have the right to amend or eliminate this Exhibit "A" (a
     "Contract Change") subject to the following:

     A.   Any such Contract Change shall require VeraSun Fort Dodge's written
          consent, with such consent not to be unreasonably withheld. For
          purposes of the foregoing, VeraSun Fort Dodge shall not withhold its
          consent to any amendment to this Exhibit "A" as long as such amendment
          will not have an adverse economic effect on VeraSun Fort Dodge under
          the Agreement.

<PAGE>

     B.   VeraSun Fort Dodge shall have thirty (30) days from receipt of AREI's
          written notice of a proposed Contract Change to notify AREI in writing
          of whether or not VeraSun Fort Dodge consents to such Contract Change.
          If VeraSun Fort Dodge notifies AREI in writing within such thirty (30)
          day period of its consent to such Contract Change or fails to provide
          written notice to AREI within such thirty (30) day period of its
          non-consent to such Contract Change then such Contract Change shall be
          effective as of the date set forth in AREI's written notice; provided,
          however, if such Contract Change will not have an adverse economic
          effect on VeraSun Fort Dodge under the Agreement it shall also be
          effective as of the date set forth un AREI's written notice, whether
          or not such consent is given by VeraSun Fort Dodge.

     C.   Subject to B. above, if VeraSun Fort Dodge provides written notice of
          its non-consent to the Contract Change within thirty (30) days of its
          receipt of AREI's written notice of such Contract Change, then the
          Contract Change shall not be effective.

Aventine Renewable Energy, Inc          VeraSun Fort Dodge, LLC

By: /s/ Ronald H. Miller                By: /s/ Bruce A. Jamerson
    ---------------------------------       ------------------------------------
    Ronald H. Miller, President & CEO       Bruce A. Jamerson, President & CFO

Date: 2/22/05                           Date: 3/11/05Exhibit 10.1

 

Exhibit 10.1

Listed Officer Compensation

Table 1 below sets forth the base salaries approved by the Compensation Committee (the
“Committee”) of the Board of Directors of Intel Corporation for 2006 for the company’s Chief
Executive Officer and our four other most highly compensated executive officers in 2005 (“listed
officers”). The listed officers were determined in reference to the company’s fiscal year ended
December 31, 2005. Each of the listed officers’ employment with Intel is on an at-will basis.

Table 1

	 	 	 	 	 
	Name and Position	 	Base Salary(1) ($)	 
	 	 	 	 
	Craig R. Barrett
	 	 	450,000	 
	Chairman of the Board
	 	 	 	 
	Paul S. Otellini
	 	 	700,000	 
	President and Chief Executive Officer
	 	 	 	 
	Andy D. Bryant
	 	 	355,000	 
	Executive Vice President
	 	 	 	 
	Chief Financial and Enterprise Services Officer
	 	 	 	 
	Sean M. Maloney
	 	 	290,000	 
	Executive Vice President
	 	 	 	 
	General Manager, Mobility Group
	 	 	 	 
	Arvind Sodhani
	 	 	250,000	 
	Senior Vice President and President, Intel Capital
	 	 	 	 

 

			
	(1)	 	Base salary is effective January 1, 2006.

Each of the listed officers is eligible to receive an annual bonus (“Incentive Cash Payment”) under
the Executive Officer Incentive Plan (“EOIP”). Under the EOIP, each listed officer has an
“Incentive Baseline Amount” determined annually by the Committee, and that Incentive Baseline
Amount is multiplied at year-end under a formula to calculate the maximum Incentive Cash Payment
that the listed officer may receive. The result of that multiplication is the maximum that the
officer might receive as his or her Incentive Cash Payment for the year. The Committee reviews
those amounts and determines if it wants to pay them or reduce them in the Committee’s discretion;
the amounts cannot be increased beyond the maximum limits under the formula.

The EOIP formula for determining the maximum Incentive Cash Payments is: (1) the listed officer’s
Incentive Baseline Amount, times (2) Intel’s EPS as calculated under the EOIP (“Plan EPS”) times
(3) a “Performance Factor” number that is set each year by the Committee, all of which are further
explained below. In addition, (4) the EOIP has a cap limiting each individual’s Incentive Cash
Payment to a maximum annual limit of $5,000,000, and (5) the Committee may in its discretion reduce
the amounts to be paid below those calculated by the formula. During the first quarter of each
year, the Committee determines a separate Incentive Baseline Amount for each EOIP participant and
sets a common Performance Factor for the EOIP formula. After the end of each year, the Committee
determines the Incentive Cash Payments to be paid under the EOIP for that year when the Plan EPS is
known. It is expected that the Incentive Cash Payment will be greater than the Incentive Baseline
Amount, because of the intended multiplier effect of the formula. From year to year, the incentive
payments are much more affected by the pay-for-performance effect of the multiplier than by any
adjustment in the Incentive Baseline Amount determined by the Committee.

In the EOIP formula, Plan EPS is not necessarily earnings per share for financial reporting
purposes. Plan EPS is defined as the greater of Intel’s operating income or Intel’s net income, in
each case, divided by

 

 

Intel’s weighted average common shares outstanding, assuming dilution. Operating income does not
include gains or losses on equity securities or interest and other income that Intel earned, and
does not include a deduction for interest expense and income taxes; as a result, Plan EPS based on
operating income generally exceeds Plan EPS based on net income.

The Committee may adjust the calculation of operating income or its net income for Plan EPS
purposes based on criteria described in the EOIP and selected by the Committee in its discretion.
These adjustments are established by the Committee during the first quarter of the year.

The Performance Factor is also set by the Committee during the first quarter of the year. When
determining the Performance Factor, the Committee considers Intel’s past financial performance,
Intel’s internal estimates of current-year financial performance, and the competitiveness of
Intel’s executive officers’ Base Salary and Incentive Baseline Amounts compared to the peer groups.

On January 18, 2006, the Compensation Committee determined a separate Incentive Baseline Amount for
each listed officer and set a common Performance Factor for the EOIP formula. After the end of
2006, the Committee will determine the Incentive Cash Payments to be paid under the EOIP for that
year when the Plan EPS is known.

Each of the listed officers also participates in the company’s semiannual cash award program in
which they will receive 0.55 day of pay (calculated based on eligible earnings for the six-month
period, including one-half of Incentive Baseline Amounts as applicable) for every two percentage
points of corporate pretax margin (pretax profit as a percentage of revenue), or a total payment
expressed as days of pay based on 4% of net income divided by the current value of a worldwide day
of pay, whichever is greater. Payouts under this program are made in the first and third quarters
of the year based on corporate performance for the preceding two quarters. The plan also has a
provision for rewarding employees with an additional day of pay for each six-month period if Intel
achieves certain customer satisfaction goals under its Customer Excellence Program for the
performance period.

The listed officers are also eligible to receive stock options, restricted stock, restricted
stock units, stock appreciation rights and performance based awards under the Intel Corporation
2004 Equity Incentive Plan should the Compensation Committee determine that it is appropriate to
do so. Beginning in 2006, the listed officers received a mix of restricted stock units and stock
options. The 2006 stock option and restricted stock unit awards to the listed officers have been
disclosed on individual Forms 4 filed with the U.S. Securities and Exchange Commission pursuant to
Section 16(a) of the Securities Exchange Act of 1934, as amended. In addition, each of the listed
officers is eligible to receive company contributions to his accounts in the company’s
tax-qualified and non-qualified capital accumulation/retirement plans. Company contributions to
these plans are discretionary and may vary with the company’s financial performance, particularly
revenue and income. Since the amount of the company contribution to the tax-qualified plan is
limited by U.S. tax law, the excess, if any, is allocated to the individual’s account in the
non-qualified plan. The amount of the 2006 company contribution to these plans will be determined
in early 2007 based on the company’s performance for fiscal 2006. The listed officers may also
participate in the company’s tax-qualified employee stock purchase plan, which allows participants
to acquire Intel stock at a discount price.

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