Document:

Exhibit 10.1

                          WAIVER AND THIRD AMENDMENT TO
                          -----------------------------
             FIFTH AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT
             ------------------------------------------------------
     THIS  WAIVER  AND  THIRD  AMENDMENT  TO FIFTH AMENDED AND RESTATED LOAN AND
SECURITY  AGREEMENT  (this  "Amendment")  is dated and effective as of April 30,
2003  by and among THE GSI GROUP, INC., a Delaware corporation ("Borrower"), the
several financial institutions which are or may from time to time become parties
(each, a "Bank" and collectively, the "Banks") to the Amended Loan Agreement (as
hereinafter  defined),  and  LASALLE  BANK  NATIONAL  ASSOCIATION  ("Agent").
                               W I T N E  S E T H:
     WHEREAS,  the  Borrower,  the  Banks  and  the Agent are parties to a Fifth
Amended  and  Restated Loan and Security Agreement dated as of July 25, 2001, as
amended  (the  "Amended  Loan  Agreement";  and
WHEREAS,  the  Borrower  has  defaulted  in  the  performance  of certain of its
obligations  under  the  Amended  Loan  Agreement  in  that  it has violated the
covenant  contained in Section 8.05 of the Amended Loan Agreement as of December
31,  2002  (the  "Covenant  Default").
WHEREAS,  the  Borrower  has requested that the Banks waive the Event of Default
that  exists  by  reason  of  the Covenant Default, and the Banks are willing to
grant  such a waiver, subject to the terms and conditions hereinafter set forth;
NOW,  THEREFORE,  the  parties  hereby  agree  as  follows:
     1.     Capitalized terms used in this Amendment have the meanings specified
for  such  terms  in  the  Amended  Loan  Agreement.
2.     The  parties  acknowledge that an Event of Default has occurred by reason
of  the  Covenant  Default.  The  Banks  each hereby waives the Event of Default
arising  solely  from  the  Covenant Default.  The foregoing waiver by the Banks
shall  not  be  deemed  to  be  a  waiver  of any default under the Amended Loan
Agreement  (other  than  the Covenant Default), any Event of Default (other than
the  Event of Default that exists solely by reason of the Covenant Default), any
other provision of the Amended Loan Agreement or any other Loan Document, or any
subsequent  default  or  Event  of  Default,  whether the same as, similar to or
different  than  the  default  resulting  from  the violation of the covenant in
Section  8.05  of  the  Amended  Loan  Agreement.
3.     On  the date hereof, Borrower shall pay the Banks a waiver fee of $60,000
as  further  consideration for the waiver set forth in paragraph 2 hereof.  Said
waiver  fee  shall  be  paid to each Bank in accordance with its Pro Rata Share.
4.     Effective  as  of  the  date hereof, the Amended Loan Agreement is hereby
amended  as  follows:
     (a)     The  definition  of the term "Available RCL Amount" in Section 1.01
of  the  Amended  Loan  Agreement  is  hereby  modified  to  read  as  follows:
"Available  RCL  Amount"  shall  mean  $47,000,000.
     (b)     The  definition of the term "Borrowing Base" in Section 1.01 of the
Amended  Loan  Agreement  is  hereby  modified  to  read  as  follows:
"Borrowing  Base" shall mean at any time the sum of (i) 80% of the unpaid amount
of  Eligible  Accounts  plus (ii) the lesser of (A) 50% of the value of Eligible
Inventory,  valued at the lower of cost or market and (B) $30,000,000 plus (iii)
the  Borrowing  Base  Overadvance.
     (c)     The  definition of the term "Borrowing Base Overadvance" in Section
1.01  of  the  Amended  Loan  Agreement  is  hereby modified to read as follows:
"Borrowing  Base  Overadvance"  shall  mean  (i)  from  May  1, 2003 through and
including  September  30,  2003,  the sum of $5,000,000, and (ii) from and after
September  30,  2003,  zero.
     (d)     The definition of the term "Fixed Charge Coverage Ratio" in Section
1.01  of  the  Amended  Loan  Agreement  is  hereby modified to read as follows:
"Fixed  Charge  Coverage  Ratio"  shall  mean,  with respect to Borrower for any
period  of  four  consecutive Fiscal Quarters most recently ended on or prior to
the  date  of  determination, the ratio of (a) EBITDA for such period to (b) the
sum  of  (i)  Interest  Expense incurred during such period (other than Interest
Expense  with  respect  Avemarau  Debt), (ii) the installments of principal with
respect to any Debt required to be made during such period (other than principal
payments with respect to Avemarau Debt), (iii) any dividends or distributions to
stockholders made during such period, (iv) Capital Expenditures made during such
period and (v) taxes paid by Borrower during such period, in each and every case
measured  as  of  end  of  such  period.
     (e)     The  definition of the term "Majority Banks" in Section 1.01 of the
Amended  Loan  Agreement  is  hereby  modified  to  read  as  follows:
"Majority  Banks"  shall mean, as of any date, Banks holding at least 80% of the
aggregate  Commitments  as  described  on  Schedule  6  as  of  such  date.
                                           -----------
     (f)     Clause  (G)  in  the  definition  of  the term "Permitted Liens" is
hereby  modified  in  its  entirety  to  read  as  follows:  RESERVED.
(g)     The  following definition is hereby added to Section 1.01 of the Amended
Loan  Agreement:
"Fiscal  Quarter" shall mean any 13 consecutive week period (ending on a Friday)
that  constitutes  a  quarter  of  any  fiscal  year  of  Borrower.
     (h)     The first sentence of Section 2.02(A) of the Amended Loan Agreement
is  hereby  modified  in  its  entirety  to  read  as  follows:
(A)  Except as provided in Section 2.02(B), (i) while a Term Loan or any portion
thereof is Euro-Dollar Loan, it shall bear interest at a per-annum rate equal to
the  applicable  Euro-Dollar  Rate, and at other times it shall bear interest at
the  applicable  Floating Rate, (ii) while any Revolving Credit Loan (other than
that portion thereof, if any, that represents the Borrowing Base Overadvance) is
a  Euro-Dollar  Loan,  it  shall  bear interest at a per-annum rate equal to the
applicable  Euro-Dollar  Rate,  and at other times it shall bear interest at the
applicable  Floating  Rate  and  (iii)  the  Borrowing Base Overadvance (or such
portion  thereof as may be advanced and outstanding hereunder from time to time)
shall  bear  interest at a per-annum rate equal to the Prime Rate plus 200 basis
points.
     (i)     Clause  (A) of Section 6.05 of the Amended Loan Agreement is hereby
deleted  in  its  entirety.
(j)     Section  6.08  of  the  Amended Loan Agreement is hereby modified in its
entirety  to  read  as  follows:
6.08     Dividends.  Declare  or  pay any dividends, or redeem or repurchase any
         ---------
of,  or  make  any  other  payment  or  distribution  on  account of, any Stock;
provided, however, that so long as (x) no Event of Default or Unmatured Event of
Default  has  occurred  and  is  continuing  and  (y)  none of the distributions
described  in the following clauses (i) and (ii) would, if made, create an Event
of Default or an Unmatured Event of Default (including a violation of any of the
Borrower's  covenants in Article VIII or a default or event of default under the
Indenture),  Borrower  may  make  distributions  as  follows:
(i)     Borrower  may make distributions to its stockholders in an amount not to
exceed  (A)  $900,000  in  the  aggregate  during  Borrower's fiscal year ending
December  31,  2003  and  (B) $844,000 in the aggregate during Borrower's fiscal
year  ending  December  31,  2004;  and
(ii)     for  so  long  as  Borrower  maintains  its  status  as  a Subchapter S
corporation  under  the  Internal Revenue Code of 1986, as amended, Borrower may
make  distributions  to its stockholders in the amounts of the State of Illinois
and  federal  income  tax  payments (including estimated payments) to the extent
then due and attributable to income of the Borrower, determined using the lesser
of  (A)  38.6%  as  to  the  federal  income  tax rate and 3% as to the State of
Illinois income tax rate or (B) the highest State of Illinois and federal income
tax  rates applicable to any stockholder of Borrower, provided that in the event
that  aggregate  distributions  to any stockholder in respect of any fiscal year
exceed the actual State of Illinois and federal income taxes of such stockholder
attributable  to  the income of the Borrower in respect of such fiscal year, the
amount  of  such  excess  shall be repaid to the Borrower by such stockholder or
offset  against  the  amounts next distributable to such stockholder pursuant to
this  provision.
     (k)     Clause  (H) of Section 6.14 of the Amended Loan Agreement is hereby
modified  in  its  entirety  to  read  as  follows:  RESERVED
(l)     The  following  Section  6.19  is  hereby  added  to  the  Amended  Loan
Agreement:
6.19     Operating  Leases.  Enter  into  or make any payments in respect of any
         -----------------
operating  lease;  provided,  however,  that  so  long as no Event of Default or
Unmatured  Event of Default exists, Borrower may enter into and/or make payments
in  respect of operating leases from time to time provided the aggregate cost of
equipment  subject  to  such  operating leases does not exceed $2,500,000 in the
aggregate  as  of any date, as such cost is determined in such operating leases.
     (m)     All  references therein to the term "calendar quarter" contained in
Article  VII  of  the  Amended  Loan  Agreement  are  hereby modified to read as
follows: "Fiscal Quarter."  All references therein to the term "month" contained
in  Article VII of the Amended Loan Agreement shall be deemed to mean the period
of  time that Borrower designates as a month for purposes of financial reporting
and  record  keeping,  not a calendar month.  All references in the Amended Loan
Agreement  to  the term "fiscal quarter" are hereby modified to read as follows:
"Fiscal  Quarter."
(n)     Section  8.01  of  the  Amended Loan Agreement is hereby modified in its
entirety  to  read  as  follows:
8.01     EBITDA.  (a)     Have  cumulative  EBITDA  of not less than $22,000,000
         ------
for  Borrower's  fiscal  year  ending  December  31,  2003.
(b)     Have  EBITDA  (on  a  non-cumulative  basis) for each Fiscal Quarter set
forth  below  of  not  less than the amount set forth below opposite such Fiscal
Quarter:
<TABLE>
<CAPTION>

Fiscal Quarter Ending    EBITDA
---------------------  -----------
<S>                    <C>
March 28, 2003. . . .  $ 2,200,000
                       -----------
June 27, 2003 . . . .  $ 5,000,000
                       -----------
September 26, 2003. .  $12,000,000
                       -----------
December 31, 2003 . .  $ 2,800,000
                       -----------
March 26, 2004. . . .  $ 2,200,000
                       -----------
June 25, 2004 . . . .  $ 5,000,000
                       -----------
</TABLE>

     (o)     Section  8.05  of  the Amended Loan Agreement is hereby modified in
its  entirety  to  read  as  follows:
8.05     Fixed  Charge  Coverage Ratio.  (a)  Have a Fixed Charge Coverage Ratio
         -----------------------------
of  not  less  than  1.15  to 1.00 as of the end of each fiscal year of Borrower
commencing  with  the  fiscal  year  ending  December  31,  2003.
(b)  Have a Fixed Charge Coverage Ratio as of the end of each Fiscal Quarter set
forth  below  of  not  less  than the ratio set forth below opposite such Fiscal
Quarter:
<TABLE>
<CAPTION>

Fiscal Quarter Ending  Fixed Charge Coverage Ratio
---------------------  ---------------------------
<S>                    <C>
March 28, 2003. . . .                  .90 to 1.00
                       ---------------------------
June 27, 2003 . . . .                  .80 to 1.00
                       ---------------------------
September 26, 2003. .                 1.00 to 1.00
                       ---------------------------
December 31, 2003 . .                 1.15 to 1.00
                       ---------------------------
March 26, 2004. . . .                 1.15 to 1.00
                       ---------------------------
June 25, 2004 . . . .                 1.15 to 1.00
                       ---------------------------
</TABLE>

     (p)     Schedule  2of  the  Amended  Loan  Agreement  is hereby deleted and
             -----------
Schedule  2  attached  hereto  is  substituted  in  replacement  thereof.
     ------
     5.     To  induce the Agent and the Banks to enter into this Amendment, the
Borrower  has  delivered,  or  is  delivering  to  the  Agent  contemporaneously
herewith, the following, each in form and substance satisfactory to the Agent in
its  sole  and  absolute  discretion:
     (a)     A  solvency  and business purpose affidavit executed by each of the
Borrower,  and  DMC;
(b)     A  certificate  of  the  Borrower's  corporate secretary or an assistant
secretary  as  to  the  Borrower's  certificate  of  incorporation,  by-laws and
authorizing  resolutions;
(c)     A  Reaffirmation  of  Guaranty  executed  by  DMC;  and
(d)     Such  other  documents,  instruments  and  certificates as the Agent may
require  in  its  sole  and  absolute  discretion.
     6.     To  further  induce  the  Agent  and  the  Banks  to enter into this
Agreement,  the Borrower hereby represents and warrants to the Banks as follows:
     (a)     After  giving effect to the waiver set forth in paragraph 2 hereof,
no  Event  of  Default  or  Unmatured  Event  of  Default  has  occurred  and is
continuing, and all liens on Collateral granted to the Banks and/or the Agent on
behalf of the Banks remain valid first priority liens (subject only to Permitted
Liens)  in  full  force  and  effect.
(b)     Each  and  every  representation  and  warranty  set  forth  in the Loan
Documents  remains  accurate  in all respects, subject only to changes expressly
permitted  therein.
(c)     No  material  adverse  change has occurred in the financial condition of
the  Borrower  since  the  date  of  the  Amended  Loan  Agreement.
(d)     The  execution  and  delivery  of  this  Amendment  and of the documents
contemplated  hereby have been duly authorized by all necessary corporate action
on  the  part of the Borrower, and this Amendment and the documents contemplated
hereby  have been duly executed and delivered by the Borrower and constitute the
legal  and  binding  obligations  of  the  Borrower.
     7.     Except  as expressly set forth herein, all terms of the Amended Loan
Agreement  as  amended  hereby  shall be and remain in full force and effect and
shall  constitute  the  legal, valid, binding and enforceable obligations of the
Borrower  to  the  Banks.  To  the  extent any terms or conditions in any of the
other  Loan  Documents  shall contradict or be in conflict with the Amended Loan
Agreement  as  amended  hereby,  such  terms  and  conditions  are hereby deemed
modified  and  amended  accordingly,  effective  the  date of this Agreement, to
reflect  the  terms and conditions of the Amended Loan Agreement as modified and
amended  hereby.
8.     To  further  induce the Agent and the Banks to enter into this Amendment,
the  Borrower  hereby acknowledges and agrees that, as of the date hereof, there
exists  no  right  of offset, defense, counterclaim or objection in favor of the
Borrower as against the Agent and/or any Bank with respect to the Obligations of
the  Borrower.  Without  in  any  way  limiting  the  foregoing, Borrower hereby
further  represents  and  warrants that there are no liabilities, claims, suits,
debts,  liens,  losses,  cause  of action, demands, rights, damages or costs, or
expenses of any kind, character or nature whatsoever, known or unknown, fixed or
contingent  (collectively,  the  "Claims"),  which Borrower may have or claim to
have  against  the  Agent  or  any  Bank, or any of their respective affiliates,
agents,  employees,  officers, directors, representatives, attorneys, successors
and  assigns  (collectively, the "Bank Released Parties"), which might arise out
of  or  be connected with any act or commission or omission of the Bank Released
Parties  existing  or  occurring  on  or  prior  to  the date of this Amendment,
including,  without  limitation,  any  claims  arising  with  respect  to  the
Obligations  or any Documents.  In furtherance of the foregoing, Borrower hereby
releases,  acquits and forever discharges the Bank Released Parties from any and
all  claims  that Borrower may have or claim to have, relating to or arising out
of  or  in  connection  with  the Obligations or any Loan Documents or any other
agreement  or transaction contemplated thereby or any action taken in connection
therewith  from  the  beginning  of  time  up  to  and including the date of the
execution  and  delivery  of this Amendment.  Borrower further agrees forever to
refrain from commencing, instituting or prosecuting any lawsuit, action or other
proceeding  against  any Bank Released Party with respect to any and all claims.
9.     The  Borrower hereby restates, ratifies and reaffirms each and every term
and  condition  set forth in the Amended Loan Agreement as amended hereby and in
the Loan Documents, effective as of the date hereof.  The Borrower hereby agrees
to  pay  on  demand  all  legal  fees and out-of-pocket expenses of the Agent in
connection  with the negotiation and preparation of this Amendment and all other
documents  required  hereunder.
10.     The  Borrower  hereby  agrees  to  reimburse  US Bank for any reasonable
attorneys'  fees  and  disbursements  incurred  by  US Bank from time to time in
connection with any modifications to the Loan Documents; provided, however, that
in  no  event  shall the amount of such reimbursement exceed $5,000 per calendar
year  and  provided,  further  that  US  Bank  shall  provide Borrower with such
supporting documentation (including invoices) as Borrower may reasonably request
to  verify  the  fees  and  disbursements  for  which  reimbursement  is sought.
11.     This  Amendment  shall be governed by, and construed in accordance with,
the  laws  of  the  State  of  Illinois.
12.     This  Amendment  may be executed in multiple counterparts, each of which
shall  be  deemed  an original, but all of which taken together shall constitute
one and the same instrument.  Delivery of an executed counterpart of a signature
page  of  this  Amendment  by  telecopy  shall  be effective as of delivery of a
manually  executed  counterpart  of  this  Amendment.

<PAGE>
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed
by  their  respective  officers  thereunto duly authorized, as of the date first
above  written.
THE  GSI  GROUP,  INC.

By:            /s/  Russell  C.  Mello
        ------------------------------
Title:     Secretary  and  Treasurer

LASALLE  BANK  NATIONAL  ASSOCIATION

By:            /s/  Erica  Wicklander
        -----------------------------
Title:           Assistant  Vice  President
           --------------------------------

U.S.  BANK,  N.A.,  formerly  known  as  FIRSTAR  BANK,  N.A.

By:     /s/  Curtis  Schrieber
    --------------------------
Title:     Vice  President
       -------------------Exhibit

10.1

 

 

INDEMNIFICATION

AGREEMENT

 

THIS AGREEMENT is entered

into, effective as of

                      ,

between INTEL CORPORATION, a Delaware corporation (the “Company”) and                                                                 

(“Indemnitee”).

 

WHEREAS, it is essential

to the Company to retain and attract as directors and officers the most capable

persons available;

 

WHEREAS, Indemnitee is a

director and/or officer of the Company;

 

WHEREAS, both the Company

and Indemnitee recognize the increased risk of litigation and other claims

currently being asserted against directors and officers of corporations; and

 

WHEREAS, in recognition

of Indemnitee’s need for substantial protection against personal liability in

order to enhance Indemnitee’s continued and effective service to the Company,

and in order to induce Indemnitee to provide services to the Company as a

director or officer, the Company wishes to provide in this Agreement for the

indemnification of and the advancing of expenses to Indemnitee to the fullest

extent (whether partial or complete) permitted by law and as set forth in this

Agreement, and, to the extent insurance is maintained, for the coverage of

Indemnitee under the Company’s directors’ and officers’ liability insurance policies.

 

NOW, THEREFORE, in

consideration of the above premises and of Indemnitee’s continuing to serve the

Company directly or, at its request, with another enterprise, and intending to

be legally bound hereby, the parties agree as follows:

 

1.             Certain Definitions:

 

(a)           Board:  the Board of Directors of the Company.

 

(b)           Change in Control:  shall be deemed to have occurred if (i) any

“person” (as such term is used in Sections 13(d) and 14(d) of the Securities

Exchange Act of 1934, as amended), other than a trustee or other fiduciary

holding securities under an employee benefit plan of the Company or a

corporation owned directly or indirectly by the shareholders of the Company in

substantially the same proportions as their ownership of stock of the Company,

is or becomes the “Beneficial Owner” (as defined in Rule 13d-3 under said Act),

directly or indirectly, of securities of the Company representing 20% or more

of the total voting power represented by the Company’s then outstanding Voting

Securities, or (ii) during any period of two consecutive years, individuals who

at the beginning of such period constitute the Board and any new director whose

election by the Board or nomination for election by the Company’s shareholders

was approved by a vote of at least two-thirds (2/3) of the directors then still

in office who either were directors at the beginning of the period or whose

election or nomination for election was previously so approved, cease for any

reason to constitute a majority thereof, or (iii) the shareholders of the

Company approve

 

1

 

a merger or consolidation of the Company with any

other corporation, other than a merger or consolidation that would result in

the Voting Securities of the Company outstanding immediately prior thereto

continuing to represent (either by remaining outstanding or by being converted

into Voting Securities of the surviving entity) at least 80% of the total

voting power represented by the Voting Securities of the Company or such

surviving entity outstanding immediately after such merger or consolidation, or

the shareholders of the Company approve a plan of complete liquidation of the

Company or an agreement for the sale or disposition by the Company (in one

transaction or a series of transactions) of all or substantially all of the

Company’s assets.

 

(c)           Disinterested Director.  a director of the Company who is not and was

not a party to the Proceeding in respect of which indemnification is sought by

Indemnitee.

 

(d)           Expenses:  any expense, including without limitation,

attorneys’ fees, retainers, court costs, transcript costs, fees and expenses of

experts, including accountants and other advisors, travel expenses, duplicating

costs, postage, delivery service fees, filing fees, and all other disbursements

or expenses of the types typically paid or incurred in connection with

investigating, defending, being a witness in, or participating in (including on

appeal), or preparing for any of the foregoing in, any Proceeding relating to any

Indemnifiable Event, and any expenses of establishing a right to

indemnification under Sections 2, 4 and 5 of this Agreement.

 

(e)           Indemnifiable Event:  any event or occurrence that takes place

either prior to or after the execution of this Agreement, related to the fact

that Indemnitee is or was a director or officer of the Company, or while a

director or officer, is or was serving at the request of the Company as a

director, officer, employee, trustee, agent, limited partner, member or

fiduciary of another foreign or domestic corporation, partnership, joint

venture, employee benefit plan, trust, or other enterprise, or was a director,

officer, employee, or agent of a foreign or domestic corporation that was a

predecessor corporation of the Company or of another enterprise at the request

of such predecessor corporation, or related to anything done or not done by

Indemnitee in any such capacity, whether or not the basis of the Proceeding is

alleged action in an official capacity as a director, officer, employee, or

agent or in any other capacity while serving as a director, officer, employee,

or agent of the Company, as described above.

 

(f)            Independent Counsel:  the person or body appointed in connection

with Section 3.

 

(g)           Potential Change in Control:  shall be deemed to have occurred if (i) the

Company enters into an agreement or arrangement, the consummation of which

would result in the occurrence of a Change in Control; (ii) any person

(including the Company) publicly announces an intention to take or to consider

taking actions that, if consummated, would constitute a Change in Control;

(iii) any person (other than a trustee or other fiduciary holding securities

under an employee benefit plan of the Company acting in such capacity or a

corporation owned, directly or indirectly, by the shareholders of the Company

in substantially the same proportions as their ownership

 

2

 

of stock of the Company),

who is or becomes the Beneficial Owner, directly or indirectly, of securities

of the Company representing 10% or more of the combined voting power of the

Company’s then outstanding Voting Securities, increases his beneficial

ownership of such securities by 5% or more over the percentage so owned by such

person on the date hereof, or (iv) the Board adopts a resolution to the effect

that, for purposes of this Agreement, a Potential Change in Control has

occurred.

 

(h)           Proceeding:  any threatened, pending, or completed

action, suit, arbitration, alternative dispute mechanism, inquiry,

administrative or legislative hearing, investigation or any other actual,

threatened or completed proceeding, including any and all appeals, whether

conducted by the Company or any other party, whether civil, criminal,

administrative, investigative, or other, and in each case whether or not

commenced prior to the date of this Agreement, that relates to an Indemnifiable

Event.

 

(i)            Reviewing Party:  the person or body appointed in accordance

with Section 3.

 

(j)            Voting Securities:  any securities of the Company that vote

generally in the election of directors.

 

2.             Agreement to Indemnify.

 

(a)           General Agreement.  In the event Indemnitee was, is, or becomes

a party to or witness or other participant in, or is threatened to be made a

party to or witness or other participant in, a Proceeding by reason of (or

arising in part out of) an Indemnifiable Event, the Company shall indemnify

Indemnitee from and against any and all Expenses, liability or loss, judgments,

fines, ERISA excise taxes and penalties, amounts paid or to be paid in

settlement, any interest, assessments, or other charges imposed thereon, and

any federal, state, local, or foreign taxes imposed as a result of the actual

or deemed receipt of any payments under this Agreement, to the fullest extent

permitted by applicable law, as the same exists or may hereafter be amended or

interpreted (but in the case of any such amendment or interpretation, only to

the extent that such amendment or interpretation permits the Company to provide

broader indemnification rights than were permitted prior thereto).  The parties hereto intend that this

Agreement shall provide for indemnification in excess of that expressly

permitted by statute.

 

(b)           Initiation of Proceeding.  Notwithstanding anything in this Agreement

to the contrary, Indemnitee shall not be entitled to indemnification or

advancement pursuant to this Agreement in connection with any Proceeding

initiated by Indemnitee against the Company or any director or officer of the

Company unless (i) the Company has joined in or the Board has consented to the

initiation of such Proceeding; (ii) the Proceeding is one to enforce

indemnification rights under Section 5; or (iii) the Proceeding is instituted

after a Change in Control.

 

3

 

(c)           Expense Advances.  If so requested by Indemnitee, the Company

shall advance any and all Expenses to Indemnitee (an “Expense Advance”) within

thirty (30) calendar days after the receipt by the Company of a statement or

statements from Indemnitee requesting such advance or advances, whether prior

to or after final disposition of any Proceeding.  Advances shall be made without regard to Indemnitee’s ability to

repay the Expenses and without regard to Indemnitee’s ultimate entitlement to

indemnification under the provisions of this Agreement.  The Indemnitee shall qualify for advances

solely upon the execution and delivery to the Company of an undertaking in form

and substance reasonably satisfactory to the Company providing that the

Indemnitee undertakes to repay the advance if and to the extent that it is

ultimately determined that Indemnitee is not entitled to be indemnified by the

Company.  Advances shall include any and

all reasonable Expenses incurred pursuing an action to enforce this right of

advancement.  If Indemnitee has

commenced legal proceedings in a court of competent jurisdiction in the State

of Delaware to secure a determination that Indemnitee should be indemnified

under applicable law, as provided in Section 4, any determination made by the

Reviewing Party that Indemnitee would not be permitted to be indemnified under

applicable law shall not be binding and Indemnitee shall not be required to

reimburse the Company for any Expense Advance until a final judicial determination

is made with respect thereto (as to which all rights of appeal therefrom have

been exhausted or have lapsed). 

Indemnitee’s obligation to reimburse the Company for Expense Advances

shall be unsecured and no interest shall be charged thereon.

 

(d)           Mandatory Indemnification.  Notwithstanding any other provision of this

Agreement, to the extent that Indemnitee has been successful on the merits in

defense of any Proceeding relating in whole or in part to an Indemnifiable

Event or in defense of any issue or matter therein, Indemnitee shall be

indemnified against all Expenses incurred in connection therewith.

 

(e)           Partial Indemnification.  If Indemnitee is entitled under any

provision of this Agreement to indemnification by the Company for some or a

portion of Expenses, but not, however, for the total amount thereof, the

Company shall nevertheless indemnify Indemnitee for the portion thereof to

which Indemnitee is entitled.

 

3.             Reviewing Party.

 

(a)           Prior to any Change in Control, the

person, persons or entity (“the Reviewing Party”) who shall determine whether

Indemnitee is entitled to indemnification in the first instance shall be (a)

the Board of Directors of the Company acting by a majority vote of

Disinterested Directors, whether or not such majority constitutes a quorum of

the Board of Directors; (b) a committee of Disinterested Directors designated

by a majority vote of such directors, whether or not such majority constitutes

a quorum; or (c) if there are no Disinterested Directors, or if the Disinterested

Directors so direct, by Independent Counsel (as described below in Section

3(b)) in a written determination to the Board of Directors, a copy of which

shall be delivered to Indemnitee.

 

4

 

(b)           After a Change in Control, the

Reviewing Party shall be the Independent Counsel referred to below.  With respect to all matters arising from a

Change in Control (other than a Change in Control approved by a majority of the

directors on the Board who were directors immediately prior to such Change in

Control) concerning the rights of Indemnitee to indemnity payments and Expense

Advances under this Agreement or any other agreement or under applicable law or

the Company’s articles of incorporation or by-laws now or hereafter in effect

relating to indemnification for Indemnifiable Events, the Company shall seek

legal advice only from Independent Counsel selected by Indemnitee and approved

by the Company (which approval shall not be unreasonably withheld), and who has

not otherwise performed services for the Company or the Indemnitee (other than

in connection with indemnification matters) within the last five years.  The Independent Counsel shall not include

any person who, under the applicable standards of professional conduct then

prevailing, would have a conflict of interest in representing either the

Company or Indemnitee in an action to determine Indemnitee’s rights under this

Agreement.  Such counsel, among other

things, shall render its written opinion to the Company and Indemnitee as to

whether and to what extent the Indemnitee should be permitted to be indemnified

under applicable law.  The Company

agrees to pay the reasonable fees of the Independent Counsel and to indemnify

fully such counsel against any and all expenses (including attorneys’ fees),

claims, liabilities, loss, and damages arising out of or relating to this

Agreement or the engagement of Independent Counsel pursuant hereto.

 

4.             Indemnification Process and

Appeal.

 

(a)           Indemnification Payment.  Indemnitee shall be entitled to

indemnification of Expenses, and shall receive payment thereof, from the

Company in accordance with this Agreement within thirty (30) calendar days

after Indemnitee has made written demand on the Company for indemnification

(which written demand shall include such documentation and information as is

reasonably available to Indemnitee and is reasonably necessary to determine

whether and to what extent Indemnitee is entitled to indemnification), unless

the Reviewing Party has provided a written determination to the Company that

Indemnitee is not entitled to indemnification under applicable law.  The Reviewing Party making the determination

with respect to Indemnitee’s entitlement to indemnification shall notify

Indemnitee of such written determination no later than two (2) business days

thereafter.

 

(b)           Suit to Enforce Rights.  If (i) no determination of entitlement to

indemnification shall have been made within thirty (30) calendar days after

Indemnitee has made a demand in accordance with Section 4(a), (ii) payment of

indemnification pursuant to Section 4(a) is not made within thirty (30)

calendar days after a determination has been made that Indemnitee is entitled

to indemnification, (iii) the Reviewing Party determines pursuant to Section

4(a) that Indemnitee is not entitled to indemnification under this Agreement,

or (iv) Indemnitee has not received advancement of Expenses within thirty

(30) calendar days after making such a request in accordance with Section 2(c),

then Indemnitee shall have the right to enforce its indemnification rights

under this Agreement by commencing litigation in any court of competent

jurisdiction in the State of Delaware seeking an initial determination by the

court or

 

5

 

challenging any determination by the Reviewing Party

or any aspect thereof.  The Company

hereby consents to service of process and to appear in any such

proceeding.  Any determination by the

Reviewing Party not challenged by the Indemnitee on or before the first

anniversary of the date of the Reviewing Party’s determination shall be binding

on the Company and Indemnitee.  The

remedy provided for in this Section 4 shall be in addition to any other remedies

available to Indemnitee in law or equity.

 

(c)           Defense to Indemnification, Burden

of Proof, and Presumptions.

 

(i)  To the maximum extent permitted by

applicable law in making a determination with respect to entitlement to

indemnification (or advancement of expenses) hereunder, the Reviewing Party

shall presume that an Indemnitee is entitled to indemnification (or advancement

of expenses) under this Agreement if Indemnitee has submitted a request for

indemnification in accordance with Section 4(a) of this Agreement, and the

Company shall have the burden of proof to overcome that presumption in

connection with the making by the Reviewing Party of any determination contrary

to that presumption.

 

(ii)  It shall be a defense to any action brought

by Indemnitee against the Company to enforce this Agreement (other than an

action brought to enforce a claim for Expenses incurred in defending a

Proceeding in advance of its final disposition where the required undertaking

has been tendered to the Company) that it is not permissible under applicable

law for the Company to indemnify Indemnitee for the amount claimed.

 

(iii)  In connection with any action brought

pursuant to Section 4(c)(ii) as to whether Indemnitee is entitled to be

indemnified hereunder, the burden of proving Indemnitee is not entitled to indemnification

under this Agreement shall be on the Company.

 

(iv)  Neither the failure of the Reviewing Party

or the Company (including its Board, independent legal counsel, or its

shareholders) to have made a determination prior to the commencement of such

action by Indemnitee that indemnification of the claimant is proper under the

circumstances because Indemnitee has met the standard of conduct set forth in

applicable law, nor an actual determination by the Reviewing Party or Company

(including its Board, independent legal counsel, or its shareholders) that the

Indemnitee had not met such applicable standard of conduct, shall be admissible

as evidence in any such action for any purpose.

 

(v)  For purposes of this Agreement, the

termination of any claim, action, suit, or proceeding, by judgment, order,

settlement (whether with or without court approval), conviction, or upon a plea

of nolo contendere, or its equivalent, shall not create a presumption that

Indemnitee did not meet any particular standard of conduct or have any

particular belief or that a court has determined that indemnification is not

permitted by applicable law.

 

6

 

5.             Indemnification for Expenses

Incurred in Enforcing Rights.  The

Company shall indemnify Indemnitee against any and all Expenses and, if

requested by Indemnitee, shall advance such Expenses to Indemnitee on such

terms and conditions as the Board of Directors deems appropriate, that are

incurred by Indemnitee in connection with any claim asserted against or action

brought by Indemnitee for

 

(i)            enforcement of this Agreement,

 

(ii)           indemnification of Expenses or

Expense Advances by the Company under this Agreement or any other agreement or

under applicable law or the Company’s articles of incorporation or by-laws now

or hereafter in effect relating to indemnification for Indemnifiable Events,

and/or

 

(iii)          recovery under directors’ and

officers’ liability insurance policies maintained by the Company.

 

6.             Notification and Defense of Proceeding.

 

(a)           Notice.  Promptly after receipt by Indemnitee of

notice of the commencement of any Proceeding, Indemnitee will, if a claim in

respect thereof is to be made against the Company under this Agreement, notify

the Company of the commencement thereof; but the omission so to notify the

Company will not relieve it from any liability that it may have to Indemnitee,

except as provided in Section 13(c).

 

(b)           Defense.  With respect to any Proceeding as to which

Indemnitee notifies the Company of the commencement thereof, the Company will

be entitled to participate in the Proceeding at its own expense and except as

otherwise provided below, to the extent the Company so wishes, it may assume

the defense thereof with counsel reasonably satisfactory to Indemnitee.  After notice from the Company to Indemnitee

of its election to assume the defense of any Proceeding, the Company will not

be liable to Indemnitee under this Agreement or otherwise for any Expenses

subsequently incurred by Indemnitee in connection with the defense of such

Proceeding other than reasonable costs of investigation or as otherwise

provided below.  Indemnitee shall have

the right to employ his own counsel in such Proceeding, but all Expenses

related thereto incurred after notice from the company of its assumption of the

defense shall be at Indemnitee’s expense unless:  (i) the employment of counsel by Indemnitee has been authorized

by the Company, (ii) Indemnitee has reasonably determined that there may be a

conflict of interest between Indemnitee and the Company in the defense of the

Proceeding, (iii) after a Change in Control, the employment of counsel by

Indemnitee has been approved by the Independent Counsel, or (iv) the Company

shall not within sixty (60) calendar days in fact have employed counsel to

assume the defense of such Proceeding, in each of which case all Expenses of

the Proceeding shall be borne by the Company; and (v) if the Company has selected counsel to

represent Indemnitee and other current and former directors and officers of the

Company in the defense of a Proceeding, and a majority of such persons,

including Indemnitee, reasonably object to such counsel selected by the Company

pursuant to this Section 6(b), then such persons, including Indemnitee,

shall be permitted to employ

 

7

 

one (1) additional counsel

of their choice and the reasonable fees and expenses of such counsel shall be

at the expense of the Company; provided, however, that such

counsel shall be chosen from amongst the list of counsel, if any, approved by

any company with which the Company obtains or maintains insurance.  In the event separate counsel is retained by

an Indemnitee pursuant to this Section 6(b), the Company shall cooperate with

Indemnitee with respect to the defense of the Proceeding, including making

documents, witnesses and other reasonable information related to the defense

available to the Indemnitee and such separate counsel pursuant to joint-defense

agreements or confidentiality agreements, as appropriate.  The Company shall not be entitled to assume

the defense of any Proceeding brought by or on behalf of the Company or as to

which Indemnitee shall have made the determination provided for in (ii) above.

 

(c)           Settlement of Claims.  The Company shall not be liable to indemnify

Indemnitee under this Agreement or otherwise for any amounts paid in settlement

of any Proceeding effected without the Company’s written consent, provided,

however, that if a Change in Control has occurred, the Company shall be liable

for indemnification of Indemnitee for amounts paid in settlement if the

Independent Counsel has approved the settlement.  The Company shall not settle any Proceeding in any manner that

would impose any penalty or limitation on Indemnitee without Indemnitee’s

written consent.  Neither the Company

nor the Indemnitee will unreasonably withhold their consent to any proposed

settlement.  The Company shall not be

liable to indemnify the Indemnitee under this Agreement with regard to any

judicial award if the Company was not given a reasonable and timely

opportunity, at its expense, to participate in the defense of such action; the

Company’s liability hereunder shall not be excused if participation in the

Proceeding by the Company was barred by this Agreement.

 

7.             Establishment of Trust.  In the event of a Change in Control or a

Potential Change in Control, the Company shall, upon written request by

Indemnitee, create a Trust for the benefit of the Indemnitee and from time to

time upon written request of Indemnitee shall fund the Trust in an amount

sufficient to satisfy any and all Expenses reasonably anticipated at the time

of each such request to be incurred in connection with investigating, preparing

for, participating in, and/or defending any Proceeding relating to an

Indemnifiable Event.  The amount or

amounts to be deposited in the Trust pursuant to the foregoing funding

obligation shall be determined by the Reviewing Party.  The terms of the Trust shall provide that

upon a Change in Control, (i) the Trust shall not be revoked or the principal

thereof invaded, without the written consent of the Indemnitee, (ii) the

Trustee shall advance, within ten business days of a request by the Indemnitee,

any and all Expenses to the Indemnitee (and the Indemnitee hereby agrees to

reimburse the Trust under the same circumstances for which the Indemnitee would

be required to reimburse the Company under Section 2(c) of this Agreement),

(iii) the Trust shall continue to be funded by the Company in accordance with

the funding obligation set forth above, (iv) the Trustee shall promptly pay to

the Indemnitee all amounts for which the Indemnitee shall be entitled to

indemnification pursuant to this Agreement or otherwise, and (v) all unexpended

funds in the Trust shall revert to the Company upon a final determination by

the Reviewing Party or a court of competent jurisdiction, as the case may be,

that the Indemnitee has been fully indemnified under the terms of this

Agreement.  The Trustee shall be chosen

by the

 

8

 

Indemnitee.  Nothing in this Section 7 shall relieve the

Company of any of its obligations under this Agreement.  All income earned on the assets held in the

Trust shall be reported as income by the Company for federal, state, local, and

foreign tax purposes. The Company shall pay all costs of establishing and

maintaining the Trust and shall indemnify the Trustee against any and all

expenses (including attorneys’ fees), claims, liabilities, loss, and damages

arising out of  or relating to this

Agreement or the establishment and maintenance of the Trust.

 

8.             Non-Exclusivity.  The rights of Indemnitee hereunder shall be

in addition to any other rights Indemnitee may have under the laws of the State

of Delaware, the Company’s articles of incorporation, by-laws, applicable law,

or otherwise.  To the extent that a

change in applicable law (whether by statute or judicial decision) permits

greater indemnification by agreement than would be afforded currently under the

Company’s articles of incorporation, by-laws, applicable law, or this

Agreement, it is the intent of the parties that Indemnitee enjoy by this

Agreement the greater benefits so afforded by such change.

 

9.             Liability Insurance.  To the extent the Company maintains an

insurance policy or policies providing directors’ or officers’ liability

insurance, Indemnitee shall be covered by such policy or policies, in

accordance with its or their terms, to the maximum extent of the coverage

available for any Company director or officer.

 

10.           Period of Limitations.  No legal action shall be brought and no

cause of action shall be asserted by or on behalf of the Company or any

affiliate of the Company against Indemnitee, Indemnitee’s spouse, heirs,

executors, or personal or legal representatives after the expiration of two

years from the date of accrual of such cause of action, or such longer period

as may be required or permitted by federal or state law under the

circumstances.  Any claim or cause of

action of the Company or its affiliate shall be extinguished and deemed

released unless asserted by the timely filing of a legal action within such

period; provided, however, that if any shorter period of limitations is

otherwise applicable to any such cause of action the shorter period shall

govern.

 

11.           Amendment of this Agreement.  No supplement, modification, or amendment of

this Agreement shall be binding unless executed in writing by both of the

parties hereto.  No waiver of any of the

provisions of this Agreement shall operate as a waiver of any other provisions

hereof (whether or not similar), nor shall such waiver constitute a continuing

waiver.  Except as specifically provided

herein, no failure to exercise or any delay in exercising any right or remedy

hereunder shall constitute a waiver thereof.

 

12.           Subrogation.  In the event of payment under this

Agreement, the Company shall be subrogated to the extent of such payment to all

of the rights of recovery of Indemnitee, who shall execute all papers required

and shall do everything that may be necessary to secure such rights, including

the execution of such documents necessary to enable the Company effectively to

bring suit to enforce such rights.

 

9

 

13.           No Duplication of Payments.  The Company shall not be liable under this

Agreement to make any payment in connection with any claim made against

Indemnitee to the extent Indemnitee has otherwise actually received payment

(under any insurance policy, by law, or otherwise) of the amounts otherwise

indemnifiable hereunder.

 

14.           Binding Effect.  This Agreement shall be binding upon and

inure to the benefit of and be enforceable by the parties hereto and their

respective successors, assigns, including any direct or indirect successor by purchase,

merger, consolidation, or otherwise to all or substantially all of the business

and/or assets of the Company, spouses, heirs, and personal and legal

representatives.  The Company shall

require and cause any successor (whether direct or indirect by purchase,

merger, consolidation, or otherwise) to all, substantially all, or a

substantial part, of the business and/or assets of the Company, by written

agreement in form and substance satisfactory to Indemnitee, expressly to assume

and agree to perform this Agreement in the same manner and to the same extent

that the Company would be required to perform if no such succession had taken

place.  This Agreement shall continue in

effect regardless of whether Indemnitee continues to serve as a director or officer

of the Company or of any other enterprise at the Company’s request.

 

15.           Severability.  If any provision (or portion thereof) of

this Agreement shall be held by a court of competent jurisdiction to be

invalid, void, or otherwise unenforceable, the remaining provisions shall

remain enforceable to the fullest extent permitted by law.  Furthermore, to the fullest extent possible,

the provisions of this Agreement (including, without limitation, each portion

of this Agreement containing any provision held to be invalid, void, or

otherwise unenforceable, that is not itself invalid, void, or unenforceable)

shall be construed so as to give effect to the intent manifested by the

provision held invalid, void, or unenforceable.

 

16.           Governing Law.  This Agreement shall be governed by and

construed and enforced in accordance with the laws of the State of Delaware

applicable to contracts made and to be performed in such State without giving

effect to the principles of conflicts of laws.

 

17.           Notices.  All notices, demands, and other

communications required or permitted hereunder shall be made in writing and

shall be deemed to have been duly given if delivered by hand, against receipt,

or mailed, postage prepaid, certified or registered mail, return receipt

requested, and addressed to the Company at:

 

Intel

Corporation

2200

Mission College Blvd., SC4-203

Santa

Clara, California  95052-8119

Attn:  Corporate Secretary

 

10

 

and to Indemnitee at:

 

                                                               »

2200

Mission College Blvd., SC4-203

Santa Clara,

California  95052-8119

 

Notice of change of address shall be effective only

when done in accordance with this Section. 

All notices complying with this Section shall be deemed to have been

received on the date of delivery or on the third business day after mailing.

 

IN WITNESS

WHEREOF, the parties hereto have duly executed and delivered this Agreement as

of the day specified above.

 

	

  Company:

  	

  Intel Corporation, a Delaware

  corporation

  
	

   

  	

   

  
	

   

  	

  By:

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

  Printed Name:

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

   

  
	

   

  	

   

  
	

  Indemnitee:

  	

   

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

  Printed Name:

  	

   

  
						

 

11

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