Document:

Exhibit103CharlesReadRetentionAgreement

Exhibit 10.3

December 10, 2014

Charles Read
3225 Oakmead Village Drive, M/S 1223
P.O. Box 58039
Santa Clara, CA 95052-8039
Re:    Equity Award Amendment
Dear Charles:   
As you know, the strategic combination between Applied Materials, Inc. (“Applied” or the “Company”) and Tokyo Electron Limited (the “Transaction”) is a large and highly complex undertaking that may take a lengthy period of time to complete.  Your continued contributions as a part of Applied’s deep and talented leadership team are critical to the Company in order to ensure the successful closing of the Transaction and post-closing planning and integration, while simultaneously leading the continued effective operations of Applied’s business.  With this agreement (the “Agreement”), Applied would like to recognize your continuing dedication and provide further incentive for you to remain with Applied through and beyond the Transaction.  We are pleased to offer you the changes to your equity award that are described below.  In order to accept these changes to your equity award, please sign and return this Agreement by the deadline indicated below.  
1.Change to Time-based Equity Awards.  If the Transaction is completed, your restricted stock unit award covering shares of Applied common stock (“Shares”) that was granted on October 30, 2013 (the “Award”) will be amended to provide that the unvested Shares that are scheduled to vest during calendar year 2015 will accelerate vesting as of the date three trading days prior to the Expected Closing (as defined below).  We refer to this change to the Award as the “Acceleration Amendment” and the date that it takes effect as the “Acceleration Amendment Date.”  In order for the Acceleration Amendment to apply, your Award must be outstanding as of the Acceleration Amendment Date and be expected to be taxed under Section 4985 of the Internal Revenue Code of 1986, as amended (the “Code”).  The Code Section 4985 tax will apply to your Award if, under Code Section 4985, you are expected to be a “disqualified individual” of Applied when the Transaction closes.  

Charles Read
December 10, 2014
Page 2

For purposes of this Agreement, (1) a “trading day” refers to any day on which Applied common stock is traded on the NASDAQ Global Select Market, and (2) the date the Transaction is expected to close (the “Expected Closing”) will be determined solely in the discretion of the Chair of the Human Resources and Compensation Committee of Applied’s Board of Directors (the “Chair”). 
Please note that the Acceleration Amendment will not occur if for any reason the Transaction is terminated without being completed.  Whether you are expected to be a disqualified individual for purposes of the first paragraph in this Section 1 will be determined by the Chair, in his sole discretion.  Your amended Award will remain subject to all of the other terms and conditions in the agreement and the plan under which the Award was granted.
2.Assignment.  Upon or at any time after the closing of the Transaction, you may become an employee of Applied’s parent entity or any of its subsidiaries.  Applied may assign this Agreement and its rights and obligations to Applied’s parent entity or any other entity within the controlled group that includes Applied and its parent. 
3.Section 409A.  The payments and benefits under this Agreement are intended to be exempt from or otherwise comply with the requirements of Section 409A (as defined below) so that none of the payments or benefits to be provided under this Agreement will be subject to the additional tax imposed under Section 409A, and any ambiguities or ambiguous terms in this Agreement will be interpreted to be so exempt or otherwise comply with Section 409A.  Each payment and benefit under this Agreement is deemed to be a separate payment for Section 409A purposes.  You and Applied agree to work together in good faith to consider amendments to this Agreement and to take such reasonable actions that are necessary, appropriate or desirable to avoid imposition of any additional tax or income recognition prior to actual payment to you under Section 409A.  For purposes of this Agreement, “Section 409A” means Section 409A of the Code, any final regulations and guidance under that statute, and any applicable state law equivalent, as each may be amended or promulgated from time to time.  
4.Tax Consequences.  Applied makes no representations or warranties with respect to the tax consequences of any payments or benefits provided under this Agreement.  You agree and understand that you are responsible for payment, if any, of local, state, and/or federal taxes on the payments and benefits provided under this Agreement and any penalties or assessments related to such taxes (including but not limited to under Section 409A, Code Section 4985, and Code Section 457A). 
5.Severability.  If any provision of this Agreement is held to be void, voidable, unlawful or unenforceable, the remaining portions of this Agreement will remain in full force and effect.

Charles Read
December 10, 2014
Page 3

6.Arbitration of Disputes Relating to Agreement.  Any dispute, controversy or claim arising under or in connection with this Agreement, or the breach of this Agreement, will be settled exclusively by arbitration in accordance with the Employment Arbitration Rules of the American Arbitration Association (“AAA”) now in effect, which are available online at http://www.adr.org/employment.  Judgment upon the award rendered by the Arbitrator(s) may be entered in any court having jurisdiction of the matter.  The arbitration will take place in Santa Clara County, California, unless otherwise required by law or ordered by the AAA.  The Arbitrator will have full authority to award interim injunctive relief in addition to any and all other appropriate remedies otherwise available to the Arbitrator. 
7.Governing Law.  Unless otherwise governed by federal law, this Agreement will be governed by and construed in accordance with the laws of the State of California (except for its conflict of laws provisions).
8.Complete Agreement; Modifications.  This Agreement contains the entire agreement of the parties with respect to this subject matter, and supersedes all prior and contemporaneous written and oral agreements, discussions, negotiations, understandings or courses of conduct with respect to this subject matter.  This Agreement may not be modified or changed in any manner except by a writing executed by you and a duly authorized executive officer of Applied.  No party is relying upon any other agreement, representation, statement, omission, understanding or course of conduct which is not expressly set forth in this Agreement.  Headings used in this Agreement are for convenience only and will not be used to interpret its substantive terms.
To accept this Agreement, please date and sign this letter below where indicated and return it to Greg Lawler.  If you do not accept this Agreement by December 19, 2014, it will not become effective.
We greatly appreciate your many contributions to Applied and look forward to your continued efforts towards the effective operations of Applied’s business, successful closing of the Transaction and post-closing integration.
Sincerely,
/s/ Michael R. Splinter

Michael R. Splinter
Executive Chairman of the Board of Directors
Applied Materials, Inc.

Charles Read
December 10, 2014
Page 4

By signing this letter, I acknowledge that I have had the opportunity to review this Agreement carefully with an attorney of my choice; that I have read this Agreement and understand its terms; that I enter into this Agreement knowingly and voluntarily; and that I agree to and accept all of the terms set forth in this Agreement.
Agreed and Accepted:

	
		
	Dated: December 11, 2014
	Charles Read

	 
	 

	 
	/s/ Charles ReadExhibit104AppliedIncentivePlanEff102714

Exhibit 10.4

APPLIED MATERIALS, INC.
APPLIED INCENTIVE PLAN
(Amended and Restated Effective October 27, 2014)

APPLIED MATERIALS, INC.
APPLIED INCENTIVE PLAN

(Amended and Restated Effective October 27, 2014)

		
	1.
	ESTABLISHMENT AND PURPOSE

Applied Materials, Inc., having originally established the Applied Materials, Inc. Applied Incentive Plan (the “Plan”) effective as of December 8, 2008, hereby amends and restates the Plan in its entirety effective as of October 27, 2014.  The Plan is intended to increase shareholder value and the success of the Company and its affiliates by motivating Plan Participants to perform to the best of their abilities, and to achieve and even exceed the Company’s objectives.   The Plan’s goals are to be achieved by providing Plan Participants with the potential to receive incentive awards based on their meeting or exceeding performance goals set for the Company, their business units, and/or the Participant.  
		
	2.
	DEFINITIONS

The following terms will have the following meanings unless a different meaning is plainly required by the context:
2.1.    “Affiliate” means any corporation or any other entity (including, but not limited to, partnerships, joint ventures and limited liability companies) that the Committee determines to be controlling, controlled by, or under common control with the Company.
2.2.    “Applicable Laws” means the requirements relating to the administration or payment of Payable Awards under U.S. federal and state corporate laws, U.S. federal and state securities laws, the Code, any stock exchange or quotation system on which the Company’s or any ultimate parent entity’s common stock or ordinary shares are listed or quoted and the applicable laws of any foreign country or jurisdiction where Payable Awards are, or will be, paid under the Plan.
2.3.    “Award Period” means the fiscal year of the Company or such period longer or shorter than a fiscal year, as determined by the Committee in its sole discretion.  The Committee, in its sole discretion, may determine that with respect to any Participant, an Award Period will terminate on a date earlier than originally scheduled and may determine the Payable Awards, if any, for such shortened Award Period in accordance with the terms of the Plan.  
2.4.    “Board” means the Company’s Board of Directors or, if Applied Materials, Inc. is not the highest level (ultimate parent) entity among it and its Affiliates, the board of directors of the ultimate parent entity of the Company.
2.5.    “Cause” means a Participant’s (a) failure to perform (other than due to mental or physical disability or death) the duties of his or her position (as they may exist from time to time) to the reasonable satisfaction of the Company or an Affiliate after receipt of a written warning or 

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performance improvement plan; (b) any act of dishonesty taken in connection with the Participant’s responsibilities as an employee that is intended to result in his or her personal enrichment; (c) conviction or plea of no contest to a crime that negatively reflects on the Participant’s fitness to perform his or her duties or harms the reputation or business of the Company or of an Affiliate; (d) willful or reckless misconduct that is injurious to the reputation or business of the Company or of an Affiliate; or (e) violation of a material policy of the Company or of an Affiliate.
2.6.    “CEO” means the Chief Executive Officer of the Company; provided, however, that if Applied Materials, Inc. is not the highest level (ultimate parent) entity among it and its Affiliates, the Chief Executive Officer of the Company may determine that the Chief Executive Officer of the ultimate parent entity of the Company may act as the “CEO” under the Plan.
2.7.    “Committee” means the Company’s CEO or a committee of one or more employees or other individuals appointed by the CEO to administer the Plan.  Notwithstanding the foregoing, in the case of a Section 16 Officer, “Committee” means the HRCC.
2.8.    “Company” means Applied Materials, Inc., a Delaware corporation, and any successor thereto.
2.9.    “Disability” means a Participant’s disability occurring during an Award Period for which the Participant actually receives benefits under a Company-sponsored long-term disability plan.
2.10.    “Employer” means with respect to an individual Participant, the Company or Affiliate that both: (a) directly employs such Participant (as the case may be), and (b) the Committee has designated as eligible to cover its employees under the Plan.  
2.11.    “Entry Deadline” means, as to any Award Period, the first business day in the last Company fiscal quarter of such Award Period, or such other date as the Committee may determine for the applicable Award Period. For avoidance of doubt, the Committee may extend an Entry Deadline for an Award Period at any time during or following such Award Period (but prior to payment of any Payable Awards for such Award Period). 
2.12.    “HRCC” means the Human Resources and Compensation Committee of the board of directors of the Company, or, if Applied Materials, Inc. is not the highest level (ultimate parent) entity among it and its Affiliates, the compensation committee of the Board of the ultimate parent entity of the Company.
2.13.    “Intentional Misconduct” means a Participant’s deliberate engagement in any one or more of the following: (a) fraud, misappropriation, embezzlement or any other act or acts of similar gravity resulting or intended to result directly or indirectly in substantial personal enrichment to the Participant at the expense of the Company; (b) a material violation of a federal, state or local law or regulation applicable to the Company’s business that has a significant negative effect on the Company’s financial results; or (c) a material breach of the Participant’s fiduciary duty owed to the Company that has a significant negative effect on the Company’s 

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financial results; provided, however, that a Participant’s exercise of judgment or actions (or abstention from action), and/or decision-making will not constitute Intentional Misconduct if such judgment, action (or abstention from action) and/or decision is, in the good faith determination of the Board, reasonable based on the facts and circumstances known to the Participant at the time of such judgment, action (or abstention from action) and/or decision; and such judgment, action (or abstention from action) and/or decision is in an area or situation in which (i) discretion must be exercised by the Participant or (ii) differing views or opinions may apply.
2.14.    “Participant” means, as to any Award Period, any employee of an Employer who is at a job level grade of B4, B5, B6, B7, E4, E5, E6, E7, M4, M5, M6, M7, V1 V2, V3, or V4, subject to Section 3.1 or other job grade level or other employee of an Employer selected by the Committee.  Except as provided in Section 3.1, a Participant for a given Award Period does not include any employee that first commences employment at the Company or an Affiliate after the Entry Deadline for the applicable Award Period.  Further, unless determined otherwise by the Committee, a Participant for a given Award Period does not include any officer selected by the HRCC to participate in the Applied Materials, Inc. Senior Executive Bonus Plan for any portion of such Award Period.  Notwithstanding the foregoing, the Committee, in its sole discretion, may determine that an otherwise eligible employee or group of employees (including all or a portion of employees in an otherwise eligible job level grade) will not be a Participant in the Plan for a given Award Period. 
2.15.    “Payable Award” means the award, if any, payable to a Participant under the Plan for an Award Period. 
2.16.    “Payout Formula” or “Payout Formulae” means, as to any Award Period, the formula, or formulae or payout matrix established pursuant to Section 3.3 below to guide the determination of any Payable Awards to be paid to Participants for that Award Period.  The formula or matrix may differ from Participant to Participant and may differ from Award Period to Award Period.
2.17.    “Performance Goals” means the financial and/or operational goals applicable to a Participant for an Award Period.  Performance Goals may differ from Participant to Participant and may differ from Award Period to Award Period and may be modified during an Award Period by the Committee in its sole discretion.
2.18.    “Plan” means the Applied Materials, Inc. Applied Incentive Plan as set forth in this instrument and as hereafter amended from time to time.
2.19.     “Retirement” means, with respect to any Participant, a termination of his or her employment with the Company and all of its Affiliates after: (a) obtaining at least sixty (60) years of age and whose age plus Years of Service with the Company is not less than seventy (70) or (b) obtaining at least sixty-five (65) years of age. 
2.20.    “Section 16 Officer” means an employee of the Company or its Affiliate who is subject to Section 16 of the Securities Exchange Act of 1934, as amended.

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2.21.    “Section 409A” means Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”) and the regulations and guidance thereunder, as they may be amended or modified from time to time.
2.22.     “Section 457A” means Section 457A of the Code and the regulations and guidance thereunder, as they may be amended or modified from time to time.
2.23.    “Years of Service” means the number of months (or a fraction thereof) from a Participant’s latest hire date with the Company or its Affiliate to the date in question, divided by twelve (12).  The Participant’s latest hire date will be determined after giving effect to the non-401(k) plan principles of North American Human Resources Policy No. 2-06, Re-Employment of Former Employees/Bridging of Service, as such policy may be amended, revised or superseded from time to time. 
3.    PARTICIPATION AND DETERMINATION OF AWARDS
3.1.    Participation.  All eligible Participants will be automatically enrolled in the Plan for each Award Period on the first day of such Award Period or, if later (or again), on the first full business day during such Award Period that the individual first meets the definition of “Participant” (as defined in Section 2.14) for such Award Period (e.g., the individual moves to an eligible job level grade as provided in Section 2.14 or to an Employer (and provided the individual has an eligible job level grade)).  Unless otherwise determined by the Committee, a Participant enrolled in the Plan during an Award Period will cease to be enrolled for the portion of such Award Period in which he or she no longer meets the definition of “Participant”; provided, however, that he or she may remain eligible to receive a Payable Award for the portion of such Award Period in which he or she met the definition of “Participant” in accordance with and subject to Sections 3.4 and Section 3.5, and provided he or she meets the other terms and conditions for eligibility for a Payable Award.  Notwithstanding the foregoing, the Committee, in its sole discretion, may determine that an otherwise eligible employee will not be a Participant in the Plan for a given Award Period (or a portion thereof).  Accordingly, a Participant who participates in the Plan in a given Award Period is not in any way guaranteed or assured of participation in the Plan in any subsequent Award Period.  Unless otherwise determined by the Committee, a Participant in this Plan is not eligible to participate concurrently in any other incentive plan of the Company or its Affiliates, including, but not limited to, milestone plans, profit sharing plans, the Discretionary Bonus Incentive Plan, sales incentive plans, other incentive plans, etc.  Notwithstanding the foregoing, in determining whether an otherwise eligible employee shall become a Participant with respect to an Award Period (or portion thereof), the Committee , in its sole discretion, may provide that an individual will be deemed to have become a Participant on the first day of the Award Period, if, as of the Entry Deadline for such Award Period, (a) he or she was an employee of an entity or its predecessor that, by virtue of an acquisition or similar transaction by the Company, first became an Affiliate after the Entry Deadline for Award Period, and (b) he or she otherwise meets the definition of a “Participant” in Section 2.14 of the Plan.
3.2.    Determination of Performance Goals. The Committee, in its sole discretion, will establish written Performance Goals for each Participant for the Award Period.  The Committee, 

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in its sole discretion, may modify the Performance Goals for any Award Period, including determining that if an Award Period will end earlier than originally scheduled, that the Performance Goals applicable to such Award Period will be adjusted.
3.3.    Determination of Payout Formula or Formulae. The Committee, in its sole discretion, will establish a Payout Formula or Payout Formulae for purposes of serving as a guide for determining any Payable Awards.  Each Payout Formula will (a) be in writing, (b) be based on a comparison of actual performance against the Performance Goals, (c) suggest a target Payable Award based on the assumption that the Performance Goals are met, and (d) set a maximum Payable Award.  The Committee, in its sole discretion, may modify the Payout Formula serving as a guide for determining Payable Awards for one or more Participants for any Award Period, including determining that if an Award Period will end earlier than originally scheduled, that the Payout Formula guiding the determination of Payable Awards for such Award Period will be adjusted.
3.4.    Determination of Payable Awards.  

3.4.1.    In General. In connection with each Award Period, the Committee will determine the extent to which each Participant exceeded, achieved, or missed his or her Performance Goals for the Award Period.  The Payable Award for each Participant, if any, will be determined by the Committee, in its sole discretion, with reference to the applicable Payout Formula.  Notwithstanding any contrary provision of the Plan, (a) the Committee, in its sole discretion, may increase, reduce, pro-rate or eliminate a Participant’s Payable Award based on any factors it deems relevant, including but not limited to in connection with the early termination of an Award Period, a Participant’s termination of employment as described in Section 3.5 or an individual’s eligibility as a Participant for only a portion of the Award Period, as described in Section 3.1 and Section 3.4.2, and (b) the Board, in its sole discretion, may require a Participant to forfeit, return or reimburse the Company all or a portion of his or her Payable Award in accordance with Section 4.7 of the Plan.  The fact that a Participant achieved or exceeded his or her Performance Goals will not, in any respect, guarantee that the Participant will receive any Payable Award or any specific amount of Payable Award.  As a result, a Participant has no right or entitlement to any Payable Award unless and until the Committee, in its sole discretion, has determined the Payable Award with respect to the Participant.  
3.4.2.    Pro-Ration of Target Payable Award; Pro-Rata Payable Awards. The Committee may, in its sole discretion, pro-rate the target Payable Award for Participants that meet the definition of “Participant” for a portion of the Award Period, but remain eligible for consideration for a Payable Award in accordance with Section 3.1 and Section 3.5 and in its sole discretion, may pro-rate the target Payable Award for Participants in connection with the early termination of an Award Period.  A pro-rata Payable Award, in the sole discretion of the Committee, may be made to a Participant who remains an employee of the Company or an Affiliate through the last day of the Award Period for the portion of such Award Period in which the Participant met the definition of “Participant” in accordance with and subject to Sections 3.4 and Section 3.5, and provided he or she meets the other terms and conditions for eligibility for a 

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Payable Award.  A pro-rata Payable Award, in the sole discretion of the Committee, may be made to a Participant for an Award Period that is terminated earlier than originally scheduled.  The amount, if any, of an actual Payable Award to any such Participant remains in sole discretion of the Committee. 
3.5.    Eligibility for Payable Awards.  Except as provided in this Section, a Participant will be eligible for consideration for a Payable Award only if he or she remains an employee of the Company or an Affiliate through the last day of the Award Period.  Notwithstanding the foregoing, the Committee, in its discretion, may determine that a Participant (or Participant’s estate) will be eligible for consideration for a Payable Award (which may be pro-rated and is subject to the Committee’s authority under Section 3.4) if, during the Award Period, the Participant’s employment with the Company or an Affiliate is terminated on account of Retirement, Disability, death, or involuntary termination by the Company or an Affiliate for a reason other than Cause or under circumstances determined by the Committee to warrant continued eligibility for consideration for a Payable Award.  The Committee, in its sole discretion, may determine whether a Participant who has received any form of disciplinary action, including but not limited to a written or final warning or is placed on a Performance Improvement Plan or similar program during the Award Period is entitled to a Payable Award for that Award Period.   

		
	4.
	PAYMENT OF AWARDS

4.1.    Right to Receive Payment.  Any Payable Award will be paid solely from the Company’s general assets.  Nothing in this Plan will be construed to create a trust or to establish or evidence any Participant’s claim of any right other than as an unsecured general creditor with respect to any payment to which he or she may be entitled.
4.2.    Form of Payment.  Any Payable Award under the Plan will be paid in cash, or its equivalent, in a single lump sum.
4.3.    Timing of Payment.  Any Payable Award under the Plan will be paid as soon as administratively practicable after such Payable Award has been determined by the Committee, but in no event will such payment be made later than the fifteenth (15th) day of the third (3rd) month immediately following the end of the fiscal year of the Company in which the Payable Award was earned.  However, in the case of any Participant who is on a Company-approved personal leave of absence on the last day of the Award Period, the Payable Award, if any, will not be paid until the Participant has returned to work for at least 90 consecutive days following his or her return from the leave of absence (the “90-Day Service Period”), in which case, the Payable Award, if any, will be paid as soon as administratively practicable after the completion of the 90-Day Service Period, but in no event will such payment be made later than the fifteenth (15th) day of the third (3rd) month immediately following the later of (a) the end of the fiscal year of the Company in which the 90-Day Service Period is completed; or (b) the end of the Participant’s taxable year in which the 90-Day Service Period is completed.  Notwithstanding the foregoing, the Committee in its sole discretion, may determine that the 90-Day Service Period will be waived for any reason, including, but not limited to, with respect to a Participant whose 

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employment with the Company or an Affiliate terminates during such 90-Day Service Period by reason of such Participant’s Retirement, Disability, death or involuntary termination by the Company or an Affiliate for a reason other than Cause.  If the 90-Day Service Period is waived with respect to any Participant, the Payable Award, if any, will be paid as soon as administratively practicable after such waiver, but in no event will such payment be made later than the fifteenth (15th) day of the third (3rd) month immediately following the later of (a) the end of the fiscal year of the Company in which the 90-Day Service Period is waived; or (b) the end of the Participant’s taxable year in which the 90-Day Service Period is waived.  For purposes of clarity, a Participant who both is on a Company-approved non-personal leave of absence and whose employment status is protected by applicable law as a result of such leave of absence will not be subject to any 90-Day Service Period requirement.
4.4.    Taxes.  Each Payable Award will be paid net of all applicable tax withholding and deductions.
4.5.    Payment in Event of Participant’s Death.  If the Committee has determined, in its sole discretion, that a Participant will receive a Payable Award, but the Participant is deceased at the time such award is payable, then such Payable Award will be paid to the Participant’s estate or to the beneficiary or beneficiaries entitled thereto under the intestacy laws governing the disposition of the Participant’s estate.
4.6.    Payment Through Affiliate.  Payable Awards may be paid, in the Committee’s discretion, through the Company or any of its Affiliates.
4.7.    Clawback in Connection with a Material Negative Financial Restatement.  Pursuant to the clawback policy of the Company or its ultimate parent entity, the Board, in its sole discretion, may require a Participant to forfeit, return or reimburse the Company all or a portion of his or her Payable Award that is paid on or after December 7, 2009, if (i) the Participant is or was a Section 16 Officer during the applicable Award Period, and (ii) the Participant deliberately engaged in Intentional Misconduct that was determined by the Board, in its sole discretion, to be the primary cause of a material negative restatement of a Company financial statement that was filed with the U.S. Securities and Exchange Commission and such financial statement, as originally filed, is one of the Company’s three (3) most recently filed annual financial statements.  The portion of the Payable Award, if any, that a Participant may be required to forfeit, return or reimburse will be determined by the Board, in its sole discretion, but will be no more than the after-tax portion of the Payable Award that was: (1) in excess of the Payable Award he or she would have received had the Company’s financial results been calculated under the restated financial statements, and (2) paid within the period beginning on the date the Committee determines the Payable Award (in accordance with Section 3.4 of the Plan) and ending on the date that is twelve (12) months after the original filing of the financial statement that subsequently was restated.  Further, the Board, in its sole discretion, may require a Participant to forfeit, return and/or reimburse the Company for all or a portion of his or her Payable Award (“Clawback Amount”), in accordance with the clawback policy of the Company or its ultimate parent entity as may be established and/or amended from time to time or as necessary or appropriate to comply with Applicable Laws.  To the extent tax obligations on such 

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Clawback Amount were paid or due, the forfeiture, return or reimbursement shall be limited to the after‐tax portion of the Clawback Amount, unless otherwise required by Applicable Laws.
		
	5.
	ADMINISTRATION

5.1.    Committee is the Administrator.  The Plan will be administered by the Committee.
5.2.    Committee Authority. The Committee has all powers and discretion to administer the Plan and to control its operation, including, but not limited to, the power and discretion to (a) select Participants and make other determinations under Section 3; (b) make Plan rules and regulations to address any situation or condition not specifically provided for by the Plan; and (c) interpret the provisions of the Plan and any Payable Awards.  Any determination, decision or action of the Committee (or any delegate of the Committee) in connection with the construction, interpretation, administration or application of the Plan will be final, conclusive, and binding upon all persons, and will be given the maximum possible deference permitted by law. 
5.3.    Delegation by the Committee.  The Committee, in its sole discretion and on such terms and conditions as it may provide, may delegate all or part of its authority and/or powers under the Plan to one or more officers or other employees of the Company or its Affiliates; provided, however, that any decision, action or determination under the Plan by any such delegate of the Committee will be subject to review and change by the Committee, in its sole discretion.  Notwithstanding the foregoing, the Committee may not delegate its authority and/or powers under the Plan with respect to Section 16 Officers.
		
	6.
	GENERAL PROVISIONS

6.1.    Nonassignability.  A Participant will have no right to assign or transfer any interest under this Plan.
6.2.    Section 409A; Section 457A.  It is intended that any Payable Awards under this Plan will be exempt from the requirements of Section 409A pursuant to the “short-term deferral” exemption or, in the alternative, will comply with the requirements of Section 409A so that none of the payments to be provided under the Plan will be subject to the additional tax imposed under Section 409A, and any ambiguities and ambiguous terms herein shall be interpreted to so comply or be exempt.  It is also intended that all bonuses payable under this Plan be exempt from Section 457A of the Code so that none of the payments and benefits to be provided under this Plan will be subject to the additional tax imposed under Section 457A, and any ambiguities herein shall be interpreted to be exempt.  Each payment payable under this Plan is intended to constitute a separate payment for purposes of Section 1.409A-2(b)(2) of the Treasury Regulations.  The Company, in good faith and without the consent of any Participant, may make any amendments to this Plan and take such reasonable actions which it deems necessary, appropriate or desirable to avoid imposition of any additional tax or income recognition under Section 409A and/or Section 457A prior to actual payment to any Participant.
6.3.    No Effect on Employment.  The Plan, participation in the Plan, and administration of the Plan do not confer any right upon any Participant for the continuation of his or her 

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employment with the Company or its Affiliates for any Award Period or any other period.  A Participant’s employment with the Company or its Affiliates is fully terminable at will.  The Company and its Affiliates expressly reserve the right, which may be exercised at any time and without regard to when during an Award Period such exercise occurs, to terminate any Participant’s employment with or without cause, and to treat him or her without regard to the effect that such treatment might have upon him or her as a Participant.  
6.4.    No Individual Liability.  Neither the Committee, nor any member of the Committee, nor any delegate of the Committee, nor any member of the HRCC, nor any member of the Board will be liable for any determination, decision or action made or taken in good faith with respect to the Plan or any Payable Award under the Plan.
6.5.    Integration.  The Plan as stated in this document is the complete embodiment of the terms and conditions of the Plan and supersedes any prior versions of the Plan and any prior or contemporaneous agreements, promises, or representations concerning the subject matter of the Plan.  
6.6.    Amendment or Termination.  The Committee or the HRCC may amend or terminate the Plan at any time and for any reason by a written amendment.  No individual director, officer, or employee, regardless of his or her position at the Company or its Affiliates, otherwise has the power to amend or alter the terms and conditions of the Plan, whether he or she purports to do so verbally or in writing.
6.7.    Arbitration.  Any dispute arising from, or related to, this Plan will be settled pursuant to the Applied Materials, Inc. Arbitration Policy, where such an arbitration policy is in effect. 
6.8.    Severability; Governing Law.  If any provision of the Plan is found to be invalid or unenforceable, such provision will not affect the other provisions of the Plan, and the Plan will be construed in all respects as if such invalid provision had been omitted.  The provisions of the Plan will be governed by and construed in accordance with the laws of the State of California, with the exception of California’s conflict of laws provisions.

                        

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