Document:

INTC ex10.3 10Q 6.27.2015

Exhibit 10.3

INTEL CORPORATION
2006 STOCK PURCHASE PLAN

AS AMENDED AND RESTATED EFFECTIVE MAY 21, 2015

Section 1.    PURPOSE
The purpose of the Plan is to provide an opportunity for Employees of Intel Corporation, a Delaware corporation (“Intel”) and its Participating Subsidiaries (collectively Intel and its Participating Subsidiaries shall be referred to as the “Company”), to purchase Common Stock of Intel and thereby to have an additional incentive to contribute to the prosperity of the Company.  It is the intention of the Company that the Plan (excluding any sub-plans thereof except as expressly provided in the terms of such sub-plan) qualify as an “Employee Stock Purchase Plan” under Section 423 of the U.S. Internal Revenue Code of 1986, as amended (the “Code”), and the Plan shall be administered in accordance with this intent. In addition, the Plan authorizes the grant of options pursuant to sub-plans or special rules adopted by the Committee designed to achieve desired tax or other objectives in particular locations outside of the United States or to achieve other business objectives in the determination of the Committee, which sub-plans shall not be required to comply with the requirements of Section 423 of the Code or all of the specific provisions of the Plan, including but not limited to terms relating to eligibility, Subscription Periods or Purchase Price.
Section 2.    DEFINITIONS
		
	(a)
	“Applicable Law” shall mean the legal requirements relating to the administration of an employee stock purchase plan under applicable U.S. state corporate laws, U.S. federal and applicable state securities laws, the Code, any stock exchange rules or regulations and the applicable laws of any other country or jurisdiction, as such laws, rules, regulations and requirements shall be in place from time to time.

		
	(b)
	“Board” shall mean the Board of Directors of Intel.

		
	(c)
	“Code” shall mean the Internal Revenue Code of 1986, as such is amended from time to time, and any reference to a section of the Code shall include any successor provision of the Code.

		
	(d)
	“Commencement Date” shall mean the last Trading Day prior to February 1 for the Subscription Period commencing on February 20 and the last Trading Day prior to August 1 for the Subscription Period commencing on August 20. 

		
	(e)
	“Committee” shall mean the Compensation Committee of the Board or the subcommittee, officer or officers designated by the Compensation Committee in accordance with Section 15 of the Plan (to the extent of the duties and responsibilities delegated by the Compensation Committee of the Board).

		
	(f)
	“Common Stock” shall mean the common stock of Intel, par value $.001 per share, or any securities into which such Common Stock may be converted.

		
	(g)
	“Compensation” shall mean the total compensation paid by the Company to an Employee with respect to a Subscription Period, including salary, commissions, overtime, shift differentials, payouts from Intel's Employee Cash Bonus Program (ECBP), payouts from the Employee Bonus (EB) program, and all or any portion of any item of compensation considered by the Company to be part of the Employee's regular earnings, but excluding items not considered by the Company to be part of the Employee's regular earnings.  Items excluded from the definition of “Compensation” include but are not limited to such items as relocation bonuses, expense reimbursements, certain bonuses paid in connection with mergers and acquisitions, author incentives, recruitment and referral bonuses, foreign service premiums, differentials and allowances, imputed income pursuant to Section 79 of the Code, income realized as a result of participation in any stock option, restricted stock, restricted stock unit, stock purchase or similar equity plan maintained by Intel or a Participating Subsidiary, and tuition and other reimbursements.  The Committee shall have the authority to determine and approve all 

forms of pay to be included in the definition of Compensation and may change the definition on a prospective basis.
		
	(h)
	“Effective Date” shall mean July 31, 2006.

		
	(i)
	“Employee” shall mean an individual classified as an employee (within the meaning of Code Section 3401(c) and the regulations thereunder) by Intel or a Participating Subsidiary on Intel’s or such Participating Subsidiary’s payroll records during the relevant participation period.  Notwithstanding the foregoing, no employee of Intel or a Participating Subsidiary shall be included within the definition of “Employee” if such person's customary employment is for less than twenty (20) hours per week or for less than five (5) months per year.  Individuals classified as independent contractors, consultants, advisers, or members of the Board are not considered “Employees.”

		
	(j)
	“Enrollment Period” shall mean, with respect to a given Subscription Period, that period beginning on the first (1st) day of February and August and ending on the nineteenth (19th) day of February and August during which Employees may elect to participate in order to purchase Common Stock at the end of that Subscription Period in accordance with the terms of this Plan.  The duration and timing of Enrollment Periods may be changed or modified by the Committee.

		
	(k)
	“Exchange Act” shall mean the Securities Exchange Act of 1934, as amended from time to time, and any reference to a section of the Exchange Act shall include any successor provision of the Exchange Act.

		
	(l)
	“Market Value” on a given date of determination (e.g., a Commencement Date or Purchase Date, as appropriate) shall mean the value of Common Stock determined as follows: (i) if the Common Stock is listed on any established stock exchange (not including an automated quotation system), its Market Value shall be the closing sales price for a share of the Common Stock (or the closing bid, if no sales were reported) on the date of determination as quoted on such exchange on which the Common Stock has the highest average trading volume, as reported in The Wall Street Journal or such other source as the Committee deems reliable, or (ii) if the Common Stock is listed on a national market system and the highest average trading volume of the Common Stock occurs through that system, its Market Value shall be the average of the high and the low selling prices reported on the date of determination, as reported in The Wall Street Journal or such other source as the Committee deems reliable, or (iii) if the Common Stock is regularly quoted by a recognized securities dealer but selling prices are not reported, its Market Value shall be the average of the mean of the closing bid and asked prices for the Common Stock on the date of such determination, as reported in The Wall Street Journal or such other source as the Committee deems reliable, or, (iv) in the absence of an established market for the Common Stock, the Market Value thereof shall be determined in good faith by the Board.

		
	(m)
	“Offering Price” shall mean the Market Value of a share of Common Stock on the Commencement Date for a given Subscription Period.

		
	(n)
	“Participant” shall mean a participant in the Plan as described in Section 5 of the Plan.

		
	(o)
	“Participating Subsidiary” shall mean a Subsidiary that has been designated by the Committee in its sole discretion as eligible to participate in the Plan with respect to its Employees.

		
	(p)
	“Plan” shall mean this 2006 Stock Purchase Plan, including any sub-plans or appendices hereto.

		
	(q)
	“Purchase Date” shall mean the last Trading Day of each Subscription Period.

		
	(r)
	“Purchase Price” shall have the meaning set out in Section 8(b).

		
	(s)
	“Securities Act” shall mean the U.S. Securities Act of 1933, as amended from time to time, and any reference to a section of the Securities Act shall include any successor provision of the Securities Act.

		
	(t)
	“Stockholder” shall mean a record holder of shares entitled to vote such shares of Common Stock under Intel's by-laws.

		
	(u)
	“Subscription Period” shall mean a period of approximately six (6) months at the end of which an option granted pursuant to the Plan shall be exercised. The Plan shall be implemented by a series of Subscription Periods of approximately six (6) months duration, with new Subscription Periods commencing on each February 20 and August 20 occurring on or after the Effective Date and ending on the last Trading Day in the six (6) month 

period ending on the following August 19 and February 19, respectively. The duration and timing of Subscription Periods may be changed or modified by the Committee.
		
	(v)
	“Subsidiary” shall mean any entity treated as a corporation (other than Intel) in an unbroken chain of corporations beginning with Intel, within the meaning of Code Section 424(f), whether or not such corporation now exists or is hereafter organized or acquired by Intel or a Subsidiary.

		
	(w)
	“Trading Day” shall mean a day on which U.S. national stock exchanges and the NASDAQ National Market System are open for trading and the Common Stock is being publicly traded on one or more of such markets.

Section 3.    ELIGIBILITY
		
	(a)
	Any Employee employed by Intel or by any Participating Subsidiary on a Commencement Date shall be eligible to participate in the Plan with respect to the Subscription Period first following such Commencement Date, provided that the Committee may establish administrative rules requiring that employment commence some minimum period (not to exceed 30 days) prior to a Commencement Date to be eligible to participate with respect to such Subscription Period. The Committee may also determine that a designated group of highly compensated Employees is ineligible to participate in the Plan so long as the excluded category fits within the definition of “highly compensated employee” in Code Section 414(q).

		
	(b)
	No Employee may participate in the Plan if immediately after an option is granted the Employee owns or is considered to own (within the meaning of Code Section 424(d)) shares of Common Stock, including Common Stock which the Employee may purchase by conversion of convertible securities or under outstanding options granted by Intel or its Subsidiaries, possessing five percent (5%) or more of the total combined voting power or value of all classes of stock of Intel or of any of its Subsidiaries. All Employees who participate in the Plan shall have the same rights and privileges under the Plan, except for differences that may be mandated by local law and that are consistent with Code Section 423(b)(5); provided that individuals participating in a sub-plan adopted pursuant to Section 17 which is not designed to qualify under Code section 423 need not have the same rights and privileges as Employees participating in the Code section 423 Plan. No Employee may participate in more than one Subscription Period at a time.

Section 4.    SUBSCRIPTION PERIODS
The Plan shall generally be implemented by a series of six (6) month Subscription Periods with new Subscription Periods commencing on each February 20 and August 20 and ending on the last Trading Day in the six (6) month periods ending on the following August 19 and February 19, respectively, or on such other date as the Committee shall determine, and continuing thereafter until the Plan is terminated pursuant to Section 14 hereof. The first Subscription Period shall commence on August 21, 2006 and shall end on the last Trading Day on or before February 19, 2007. The Committee shall have the authority to change the frequency and/or duration of Subscription Periods (including the commencement dates thereof) with respect to future Subscription Periods if such change is announced at least thirty  (30) days prior to the scheduled occurrence of the first Commencement Date to be affected thereafter.
Section 5.    PARTICIPATION
		
	(a)
	An Employee who is eligible to participate in the Plan in accordance with its terms on a Commencement Date shall automatically receive an option in accordance with Section 8(a) and may become a Participant by completing and submitting, on or before the date prescribed by the Committee with respect to a given Subscription Period, a completed payroll deduction authorization and Plan enrollment form provided by Intel or its Participating Subsidiaries or by following an electronic or other enrollment process as prescribed by the Committee. An eligible Employee may authorize payroll deductions at the rate of any whole percentage of the Employee’s Compensation, not to be less than two percent (2%) and not to exceed five percent (5%) of the Employee’s Compensation (or such other percentages as the Committee may establish from time to time before a Commencement Date) of such Employee’s Compensation on each payday during the Subscription Period. All payroll deductions will be held in a general corporate account or a trust account. No interest shall be paid or credited to the Participant with respect to such payroll deductions. Intel shall maintain or cause to be maintained a separate bookkeeping account for each Participant under the Plan and the amount of each Participant’s payroll deductions shall be credited to such account. A Participant may not make any additional payments into such account, unless payroll deductions are prohibited under Applicable Law, in which case the provisions of Section 5(b) of the Plan shall apply.

		
	(b)
	Notwithstanding any other provisions of the Plan to the contrary, in locations where local law prohibits payroll deductions, an eligible Employee may elect to participate through contributions to his or her account under the Plan in a form acceptable to the Committee. In such event, any such Employees shall be deemed to be participating in a sub-plan, unless the Committee otherwise expressly provides that such Employees shall be treated as participating in the Plan.  All such contributions will be held in a general corporate account or a trust account. No interest shall be paid or credited to the Participant with respect to such contributions. 

		
	(c)
	Under procedures and at times established by the Committee, a Participant may withdraw from the Plan during a Subscription Period, by completing and filing a new payroll deduction authorization and Plan enrollment form with the Company or by following electronic or other procedures prescribed by the Committee. If a Participant withdraws from the Plan during a Subscription Period, his or her accumulated payroll deductions will be refunded to the Participant without interest, his or her right to participate in the current Subscription Period will be automatically terminated and no further payroll deductions for the purchase of Common Stock will be made during the Subscription Period. Any Participant who wishes to withdraw from the Plan during a Subscription Period, must complete the withdrawal procedures prescribed by the Committee before the last forty-eight (48) hours of such Subscription Period, subject to any changes to the rules established by the Committee pertaining to the timing of withdrawals, limiting the frequency with which Participants may withdraw and re-enroll in the Plan and may impose a waiting period on Participants wishing to re-enroll following withdrawal.

		
	(d)
	A Participant may not increase his or her rate of contribution through payroll deductions or otherwise during a given Subscription Period.  A Participant may decrease his or her rate of contribution through payroll deductions one time only during a given Subscription Period and only during an open enrollment period or such other times specified by the Committee by filing a new payroll deduction authorization and Plan enrollment form or by following electronic or other procedures prescribed by the Committee. If a Participant has not followed such procedures to change the rate of contribution, the rate of contribution shall continue at the originally elected rate throughout the Subscription Period and future Subscription Periods; unless the Committee reduces the maximum rate of contribution provided in Section 5(a) and a Participant’s rate of contribution exceeds the reduced maximum rate of contribution, in which case the rate of contribution shall continue at the reduced maximum rate of contribution.  Notwithstanding the foregoing, to the extent necessary to comply with Section 423(b)(8) of the Code for a given calendar year, the Committee may reduce a Participant’s payroll deductions to zero percent (0%) at any time during a Subscription Period scheduled to end during such calendar year. Payroll deductions shall re-commence at the rate provided in such Participant’s enrollment form at the beginning of the first Subscription Period which is scheduled to end in the following calendar year, unless terminated by the Participant as provided in Section 5(c).

Section 6.    TERMINATION OF EMPLOYMENT
In the event any Participant terminates employment with Intel and its Participating Subsidiaries for any reason (including death) prior to the expiration of a Subscription Period, the Participant’s participation in the Plan shall terminate and all amounts credited to the Participant’s account shall be paid to the Participant or, in the case of death, to the Participant’s heirs or estate, without interest. Whether a termination of employment has occurred shall be determined by the Committee. If a Participant’s termination of employment occurs within a certain period of time as specified by the Committee (not to exceed 30 days) prior to the Purchase Date of the Subscription Period then in progress, his or her option for the purchase of shares of Common Stock will be exercised on such Purchase Date in accordance with Section 9 as if such Participant were still employed by the Company. Following the purchase of shares on such Purchase Date, the Participant’s participation in the Plan shall terminate and all amounts credited to the Participant’s account shall be paid to the Participant or, in the case of death, to the Participant’s heirs or estate, without interest. The Committee may also establish rules regarding when leaves of absence or changes of employment status will be considered to be a termination of employment, including rules regarding transfer of employment among Participating Subsidiaries, Subsidiaries and Intel, and the Committee may establish termination-of-employment procedures for this Plan that are independent of similar rules established under other benefit plans of Intel and its Subsidiaries; provided that such procedures are not in conflict with the requirements of Section 423 of the Code.
Section 7.    STOCK
Subject to adjustment as set forth in Section 11, the maximum number of shares of Common Stock which may be issued pursuant to the Plan shall be three hundred seventy-three million (373,000,000) shares.  Notwithstanding the above, subject to adjustment as set forth in Section 11, the maximum number of shares that may be purchased by any Employee in a given Subscription Period shall be seventy two thousand (72,000) shares of Common Stock.  If, on a 

given Purchase Date, the number of shares with respect to which options are to be exercised exceeds either maximum, the Committee shall make, as applicable, such adjustment or pro rata allocation of the shares remaining available for purchase in as uniform a manner as shall be practicable and as it shall determine to be equitable.
Section 8.    OFFERING
		
	(a)
	On the Commencement Date relating to each Subscription Period, each eligible Employee, whether or not such Employee has elected to participate as provided in Section 5(a), shall be granted an option to purchase that number of whole shares of Common Stock (as adjusted as set forth in Section 11) not to exceed seventy two thousand (72,000) shares (or such lower number of shares as determined by the Committee), which may be purchased with the payroll deductions accumulated on behalf of such Employee during each Subscription Period at the purchase price specified in Section 8(b) below, subject to the additional limitation that no Employee participating in the Plan shall be granted an option to purchase Common Stock under the Plan if such option would permit his or her rights to purchase stock under all employee stock purchase plans (described in Section 423 of the Code) of Intel and its Subsidiaries to accrue at a rate which exceeds U.S. twenty-five thousand dollars (U.S. $25,000) of the Market Value of such Common Stock (determined at the time such option is granted) for each calendar year in which such option is outstanding at any time. For purposes of the Plan, an option is “granted” on a Participant’s Commencement Date. An option will expire upon the earliest to occur of (i) the termination of a Participant’s participation in the Plan or such Subscription Period (ii) the beginning of a subsequent Subscription Period in which such Participant is participating; or (iii) the termination of the Subscription Period. This Section 8(a) shall be interpreted so as to comply with Code Section 423(b)(8).

		
	(b)
	The Purchase Price under each option shall be with respect to a Subscription Period the lower of (i) a percentage (not less than eighty-five percent (85%)) established by the Committee (“Designated Percentage”) of the Offering Price, or (ii) the Designated Percentage of the Market Value of a share of Common Stock on the Purchase Date on which the Common Stock is purchased; provided that the Purchase Price may be adjusted by the Committee pursuant to Sections 11 or 12 in accordance with Section 424(a) of the Code. The Committee may change the Designated Percentage with respect to any future Subscription Period, but not to below eighty-five percent (85%), and the Committee may determine with respect to any prospective Subscription Period that the option price shall be the Designated Percentage of the Market Value of a share of the Common Stock on the Purchase Date.

Section 9.    PURCHASE OF STOCK
Unless a Participant withdraws from the Plan as provided in Section 5(c) or except as provided in Sections 7, 12 or 14(b), upon the expiration of each Subscription Period, a Participant’s option shall be exercised automatically for the purchase of that number of whole shares of Common Stock which the accumulated payroll deductions credited to the Participant’s account at that time shall purchase at the applicable price specified in Section 8(b). Notwithstanding the foregoing, Intel or its Participating Subsidiary may make such provisions and take such action as it deems necessary or appropriate for the withholding of taxes and/or social insurance which Intel or its Participating Subsidiary determines is required by Applicable Law. Each Participant, however, shall be responsible for payment of all individual tax liabilities arising under the Plan. The shares of Common Stock purchased upon exercise of an option hereunder shall be considered for tax purposes to be sold to the Participant on the Purchase Date. During his or her lifetime, a Participant’s option to purchase shares of Common Stock hereunder is exercisable only by him or her.
Section 10.    PAYMENT AND DELIVERY
As soon as practicable after the exercise of an option, Intel shall deliver or cause to have delivered to the Participant a record of the Common Stock purchased and the balance of any amount of payroll deductions credited to the Participant’s account not used for the purchase, except as specified below. The Committee may permit or require that shares be deposited directly with a broker designated by the Committee or to a designated agent of the Company, and the Committee may utilize electronic or automated methods of share transfer. The Committee may require that shares be retained with such broker or agent for a designated period of time and/or may establish other procedures to permit tracking of disqualifying dispositions of such shares. Intel or its Participating Subsidiary shall retain the amount of payroll deductions used to purchase Common Stock as full payment for the Common Stock and the Common Stock shall then be fully paid and non-assessable. No Participant shall have any voting, dividend, or other Stockholder rights with respect to shares subject to any option granted under the Plan until the shares subject to the option have been purchased and delivered to the Participant as provided in this Section 10. The Committee may in its discretion direct Intel to retain in a Participant’s account for the subsequent Subscription Period any payroll deductions which are not 

sufficient to purchase a whole share of Common Stock or to return such amount to the Participant. Any other amounts left over in a Participant’s account after a Purchase Date shall be returned to the Participant without interest.
Section 11.    RECAPITALIZATION
Subject to any required action by the Stockholders of Intel, if there is any change in the outstanding shares of Common Stock because of a merger, consolidation, spin-off, reorganization, recapitalization, dividend in property other than cash, stock split, reverse stock split, stock dividend, liquidating dividend, combination or reclassification of the Common Stock (including any such change in the number of shares of Common Stock effected in connection with a change in domicile of Intel), or any similar equity restructuring transaction (as that term is used in Accounting Standards Codification 718), the number of securities covered by each option under the Plan which has not yet been exercised and the number of securities which have been authorized and remain available for issuance under the Plan, as well as the maximum number of securities which may be purchased by a Participant in a Subscription Period, and the price per share covered by each option under the Plan which has not yet been exercised, shall be equitably adjusted by the Board, and the Board shall take any further actions which may be necessary or appropriate under the circumstances. The Board’s determinations under this Section 11 shall be conclusive and binding on all parties.
Section 12.    MERGER, LIQUIDATION, OTHER CORPORATE TRANSACTIONS
		
	(a)
	In the event of the proposed liquidation or dissolution of Intel, the Subscription Period will terminate immediately prior to the consummation of such proposed transaction, unless otherwise provided by the Board in its sole discretion, and all outstanding options shall automatically terminate and the amounts of all payroll deductions will be refunded without interest to the Participants.

		
	(b)
	In the event of a proposed sale of all or substantially all of the assets of Intel, or the merger or consolidation or similar combination of Intel with or into another entity, then in the sole discretion of the Board, (1) each option shall be assumed or an equivalent option shall be substituted by the successor corporation or parent or subsidiary of such successor entity, (2) a date established by the Board on or before the date of consummation of such merger, consolidation, combination or sale shall be treated as a Purchase Date, and all outstanding options shall be exercised on such date, (3) all outstanding options shall terminate and the accumulated payroll deductions will be refunded without interest to the Participants, or (4) outstanding options shall continue unchanged.

Section 13.    TRANSFERABILITY
Neither payroll deductions credited to a Participant’s bookkeeping account nor any rights to exercise an option or to receive shares of Common Stock under the Plan may be voluntarily or involuntarily assigned, transferred, pledged, or otherwise disposed of in any way, and any attempted assignment, transfer, pledge, or other disposition shall be null and void and without effect. If a Participant in any manner attempts to transfer, assign or otherwise encumber his or her rights or interests under the Plan, other than as permitted by the Code, such act shall be treated as an election by the Participant to discontinue participation in the Plan pursuant to Section 5(c).
Section 14.    AMENDMENT OR TERMINATION OF THE PLAN
		
	(a)
	The Plan shall continue from the Effective Date until August 31, 2021, unless it is terminated in accordance with Section 14(b).

		
	(b)
	The Board may, in its sole discretion, insofar as permitted by law, terminate or suspend the Plan, or revise or amend it in any respect whatsoever, and the Committee may revise or amend the Plan consistent with the exercise of its duties and responsibilities as set forth in the Plan or any delegation under the Plan, except that, without approval of the Stockholders, no such revision or amendment shall increase the number of shares subject to the Plan, other than an adjustment under Section 11 of the Plan, or make other changes for which Stockholder approval is required under Applicable Law. Upon a termination or suspension of the Plan, the Board may in its discretion (i) return without interest, the payroll deductions credited to Participants’ accounts to such Participants or (ii) set an earlier Purchase Date with respect to a Subscription Period then in progress.

Section 15.    ADMINISTRATION
		
	(a)
	The Board has appointed the Compensation Committee of the Board to administer the Plan (the “Committee”), who will serve for such period of time as the Board may specify and whom the Board may remove at any time.  

The Committee will have the authority and responsibility for the day-to-day administration of the Plan, the authority and responsibility specifically provided in this Plan and any additional duty, responsibility and authority delegated to the Committee by the Board, which may include any of the functions assigned to the Board in this Plan. The Committee may delegate to a sub-committee or to an officer or officers of Intel the day-to-day administration of the Plan. The Committee shall have full power and authority to adopt, amend and rescind any rules and regulations which it deems desirable and appropriate for the proper administration of the Plan, to construe and interpret the provisions and supervise the administration of the Plan, to make factual determinations relevant to Plan entitlements and to take all action in connection with administration of the Plan as it deems necessary or advisable, consistent with the delegation from the Board. Decisions of the Committee shall be final and binding upon all Participants. Any decision reduced to writing and signed by all of the members of the Committee shall be fully effective as if it had been made at a meeting of the Committee duly held. The Company shall pay all expenses incurred in the administration of the Plan.
		
	(b)
	In addition to such other rights of indemnification as they may have as members of the Board or officers or employees of the Company, members of the Board and of the Committee shall be indemnified by the Company against all reasonable expenses, including attorneys’ fees, actually and necessarily incurred in connection with the defense of any action, suit or proceeding, or in connection with any appeal therein, to which they or any of them may be a party by reason of any action taken or failure to act under or in connection with the Plan, or any right granted under the Plan, and against all amounts paid by them in settlement thereof (provided such settlement is approved by independent legal counsel selected by the Company) or paid by them in satisfaction of a judgment in any such action, suit or proceeding, except in relation to matters as to which it shall be adjudged in such action, suit or proceeding that such person is liable for gross negligence, bad faith or intentional misconduct in duties; provided, however, that within sixty (60) days after the institution of such action, suit or proceeding, such person shall offer to the Company, in writing, the opportunity at its own expense to handle and defend the same.

Section 16.    COMMITTEE RULES FOR FOREIGN JURISDICTIONS
The Committee may adopt rules or procedures relating to the operation and administration of the Plan to accommodate the specific requirements of local laws and procedures. Without limiting the generality of the foregoing, the Committee is specifically authorized to adopt rules and procedures regarding handling of payroll deductions or other contributions by Participants, payment of interest, conversion of local currency, data privacy security, payroll tax, withholding procedures and handling of stock certificates which vary with local requirements; however, if such varying provisions are not in accordance with the provisions of Section 423(b) of the Code, including but not limited to the requirement of Section 423(b)(5) of the Code that all options granted under the Plan shall have the same rights and privileges unless otherwise provided under the Code and the regulations promulgated thereunder, then the individuals affected by such varying provisions shall be deemed to be participating under a sub-plan and not in the Plan. The Committee may also adopt sub-plans applicable to particular Subsidiaries or locations, which sub-plans may be designed to be outside the scope of Code section 423 and shall be deemed to be outside the scope of Code section 423 unless the terms of the sub-plan provide to the contrary.  The rules of such sub-plans may take precedence over other provisions of this Plan, with the exception of Section 7, but unless otherwise superseded by the terms of such sub-plan, the provisions of this Plan shall govern the operation of such sub-plan.  The Committee shall not be required to obtain the approval of the Stockholders prior to the adoption, amendment or termination of any sub-plan unless required by the laws of the foreign jurisdiction in which Employees participating in the sub-plan are located.
Section 17.    SECURITIES LAWS REQUIREMENTS
		
	(a)
	No option granted under the Plan may be exercised to any extent unless the shares to be issued upon such exercise under the Plan are covered by an effective registration statement pursuant to the Securities Act and the Plan is in material compliance with all applicable provisions of law, domestic or foreign, including, without limitation, the Securities Act, the Exchange Act, the rules and regulations promulgated thereunder, applicable state and foreign securities laws and the requirements of any stock exchange upon which the Shares may then be listed, subject to the approval of counsel for the Company with respect to such compliance. If on a Purchase Date in any Subscription Period hereunder, the Plan is not so registered or in such compliance, options granted under the Plan which are not in material compliance shall not be exercised on such Purchase Date, and the Purchase Date shall be delayed until the Plan is subject to such an effective registration statement and such compliance, except that the Purchase Date shall not be delayed more than twelve (12) months and the Purchase Date shall in no event be more than twenty-seven (27) months from the Commencement Date relating to such Subscription Period. If, on the Purchase Date of any offering hereunder, as delayed to the 

maximum extent permissible, the Plan is not registered and in such compliance, options granted under the Plan which are not in material compliance shall not be exercised and all payroll deductions accumulated during the Subscription Period (reduced to the extent, if any, that such deductions have been used to acquire shares of Common Stock) shall be returned to the Participants, without interest. The provisions of this Section 17 shall comply with the requirements of Section 423(b)(5) of the Code to the extent applicable.
		
	(b)
	As a condition to the exercise of an option, Intel may require the person exercising such option to represent and warrant at the time of any such exercise that the Shares are being purchased only for investment and without any present intention to sell or distribute such Shares if, in the opinion of counsel for Intel, such a representation is required by any of the aforementioned applicable provisions of law.

Section 18.    GOVERNMENTAL REGULATIONS
This Plan and Intel's obligation to sell and deliver shares of its stock under the Plan shall be subject to the approval of any governmental authority required in connection with the Plan or the authorization, issuance, sale, or delivery of stock hereunder.
Section 19.    NO ENLARGEMENT OF EMPLOYEE RIGHTS
Nothing contained in this Plan shall be deemed to give any Employee or other individual the right to be retained in the employ or service of Intel or any Participating Subsidiary or to interfere with the right of Intel or Participating Subsidiary to discharge any Employee or other individual at any time, for any reason or no reason, with or without notice.
Section 20.    GOVERNING LAW
This Plan shall be governed by applicable laws of the State of Delaware and applicable federal law.
Section 21.    EFFECTIVE DATE
This Plan shall be effective on the Effective Date, subject to approval of the Stockholders of Intel within twelve (12) months before or after its date of adoption by the Board.
Section 22.    REPORTS
Individual accounts shall be maintained for each Participant in the Plan. Statements of account shall be made available to Participants at least annually, which statements shall set forth the amounts of payroll deductions, the Purchase Price, the number of shares of Common Stock purchased and the remaining cash balance, if any.
Section 23.    DESIGNATION OF BENEFICIARY FOR OWNED SHARES
With respect to shares of Common Stock purchased by the Participant pursuant to the Plan and held in an account maintained by Intel or its assignee on the Participant’s behalf, the Participant may be permitted to file a written designation of beneficiary, who is to receive any shares and cash, if any, from the Participant’s account under the Plan in the event of such Participant’s death subsequent to the end of a Subscription Period but prior to delivery to him or her of such shares and cash. In addition, a Participant may file a written designation of a beneficiary who is to receive any cash from the Participant’s account under the Plan in the event of such Participant’s death prior to the Purchase Date of a Subscription Period. If a Participant is married and the designated beneficiary is not the spouse, spousal consent shall be required for such designation to be effective, to the extent required by local law. The Participant (and if required under the preceding sentence, his or her spouse) may change such designation of beneficiary at any time by written notice. Subject to local legal requirements, in the event of a Participant’s death, Intel or its assignee shall deliver any shares of Common Stock and/or cash to the designated beneficiary. Subject to local law, in the event of the death of a Participant and in the absence of a beneficiary validly designated who is living at the time of such Participant’s death, Intel shall deliver such shares of Common Stock and/or cash to the executor or administrator of the estate of the Participant, or if no such executor or administrator has been appointed (to the knowledge of Intel), Intel in its sole discretion, may deliver (or cause its assignee to deliver) such shares of Common Stock and/or cash to the spouse, or to any one or more dependents or relatives of the Participant, or if no spouse, dependent or relative is known to Intel, then to such other person as Intel may determine. The provisions of this Section 23 shall in no event require Intel to violate local law, and Intel shall be entitled to take whatever action it reasonably concludes is desirable 

or appropriate in order to transfer the assets allocated to a deceased Participant’s account in compliance with local law.
Section 24.    ADDITIONAL RESTRICTIONS OF RULE 16b-3.
The terms and conditions of options granted hereunder to, and the purchase of shares of Common Stock by, persons subject to Section 16 of the Exchange Act shall comply with the applicable provisions of Rule 16b-3. This Plan shall be deemed to contain, and such options shall contain, and the shares of Common Stock issued upon exercise thereof shall be subject to, such additional conditions and restrictions, if any, as may be required by Rule 16b-3 to qualify for the maximum exemption from Section 16 of the Exchange Act with respect to Plan transactions.
Section 25.    NOTICES

All notices or other communications by a Participant to Intel or the Committee under or in connection with the Plan shall be deemed to have been duly given when received in the form specified by Intel or the Committee at the location, or by the person, designated by Intel for the receipt thereof.INTC ex10.4 10Q 6.27.2015

Exhibit 10.4

July 1, 2015
Renée J. James
Dear Renée:
As President of Intel Corporation and a key Executive Office partner, you have played a critical leadership and transformation role at Intel.  We value your leadership and the dedication you have demonstrated over the years, and are saddened to learn of your desire to retire from Intel and pursue CEO opportunities outside Intel.  I appreciate your willingness to delay your departure briefly to allow for a smooth leadership transition.  
In recognition of your critical role and importance to Intel, your willingness to postpone your departure, and in return for your promises in this Transition Agreement (“Agreement”) and the Release attached to it, Intel Corporation (“Intel” or the “Company”) is offering you a transition payment and continued employment, sabbatical and benefits as described below. By signing this agreement, you and Intel (the “Parties” and each, a “Party”) agree as follows:
		
	1)
	Transition Period.  From now through January 29, 2016 (“Transition Period”) you will continue as President reporting to Brian Krzanich.  During the Transition Period you will continue to oversee Intel for Good and will focus on winding down the Executive Office and transitioning your current duties as requested by Brian.  It is expected that your job duties during the Transition Period will engage at least fifty percent (50%) or more of your average level of services prior to the Transition Period.  In addition to these job duties, your primary focus will be on your external job search.  Your attendance in the office shall be at your discretion and consistent with performing your remaining duties.  You are expected to abide in all material respects with all Company policies during the Transition Period. During your Intel employment, you will continue to receive your regular base pay, Annual Performance Bonus (APB), Quarterly Performance Bonus (QPB), equity vesting, vacation accrual and employee benefits, subject to the terms and conditions of the applicable plans and programs. You will not be eligible for a Focal grant or pay increase in January 2016.  The Transition Period and associated pay and benefits contained in this paragraph 1 and paragraph 2, below are in addition to anything of value to which you are already entitled, including but not limited to those benefits under Intel’s Rule of 75 retirement plans. 

		
	2)
	Sabbatical and Time off during Transition Period.  While you will remain employed and providing services to the Company until your Separation Date (as defined below), the Parties acknowledge that your last day in the office will be November 25, 2015.  As part of this Agreement, Intel will allow you to take a paid sabbatical, vacation and holidays from November 26, 2015 through January 29, 2016.  In order to allow you time for an external job search and to attend to personal matters, you may also use any accrued but unused vacation time and personal days as needed prior to November 26, 2015. 

1

		
	3)
	Separation Date and Payment of Accrued Salary.  Your last day of employment with Intel (“Separation Date”) will be the earlier of (a) January 29, 2016, (b) the date that Intel, in its discretion, terminates your employment with Cause (as defined below) or (c) the date that you voluntarily terminate your employment with Intel.  Intel will pay you all accrued salary earned through the Separation Date, subject to payroll deductions and required withholdings.

		
	4)
	Transition Payment.  Provided that you remain employed through the end of the Transition Period and you timely sign and do not revoke the Release (attached hereto) on or after the Separation Date, Intel agrees to pay you a special Transition Payment in the gross amount of Four Million Dollars ($4,000,000.00), less applicable tax withholdings.  This Transition Payment will be paid within two payroll periods following the date the Release becomes effective and irrevocable, provided that in no event will such payment be made later than March 15th of the calendar year following the year in which your Separation Date occurs.

		
	5)
	Health Coverage.  Your group health coverage will terminate on the last day of the month in which your employment ends.  At that time, you will be eligible to continue group health insurance benefits at your own expense under the terms and conditions of the applicable benefit plan, federal COBRA law and/or, if applicable, state insurance laws. 

		
	6)
	Termination for Cause. In the event that Intel terminates your employment for Cause (as defined below) prior to the end of the Transition Period, you will be eligible for all accrued salary earned through the Separation Date, as well as any earned APB and QPB bonuses, subject to the terms and conditions of the applicable benefit plans and programs.  You will not be eligible for the Transition Payment as described in paragraph 4.  

For purposes of this Agreement, “Cause” means a good faith determination by the CEO with approval from the Board of Directors that your employment be terminated for only one of the following reasons (1) commission of an act of material fraud against Intel; (2) willful refusal or willful failure to comply in a material respect with any reasonable and lawful written directive of the CEO or of Intel’s Board of Directors; (3) conviction of, guilty plea or “no contest” plea to a felony or to a misdemeanor involving moral turpitude (where moral turpitude means so extreme a departure from ordinary standards of honesty, good morals, justice or ethics as to be shocking to the moral sense of the community); (4) willful failure or willful refusal to comply in any material respect with the non-solicitation, non-disparagement or confidentiality provisions to which you have agreed to be bound; (5) willful and gross misconduct in connection with the performance of your duties; (6) willful and improper disclosure of confidential information or violation of material Intel policy (which has been previously made available to you) or Code of Conduct; (7) willful breach of fiduciary duty to Intel; (8) failure to cooperate with Intel in any investigation or formal proceeding; or (9) being found liable in a Securities and Exchange Commission enforcement action, in each case (with the exception of (1), (3) and (9) above after the receipt of written notice from Intel’s CEO and your failure to cure (if curable) within thirty (30) days of your receipt of the written notice, provided that Intel must provide you with at least thirty (30) days to cure and if you cure, Cause shall not exist under any otherwise applicable section in this paragraph.  
		
	7)
	Your Voluntary Termination of Employment Prior to End of Transition Period.  In the event that you voluntarily terminate your employment prior to the end of the Transition Period (including by electing to terminate your employment by retiring effective an earlier date), you will be eligible for all accrued salary earned through the Separation Date, as well as any earned APB and QPB bonuses, subject to the terms and conditions of the applicable benefit plans and programs.  In addition, Intel will pay you a pro-rata share of the Transition Payment described in paragraph 4 based on the months you served in the Transition Period.  Payment of this pro-rata share of the Transition Payment will be conditioned on you signing and not revoking the Release.

The pro-rata share of the Transition Payment will be subject to applicable tax withholdings, and will be paid within two payroll periods following the date the Release becomes effective and irrevocable, provided that in no event will such payment be made later than March 15th of the calendar year following the year in which your Separation Date occurs. 

2

		
	8)
	Other Compensation or Benefits.  You acknowledge that, except as expressly provided in this Agreement, you will not receive any additional compensation, severance or benefits after the Separation Date, with the exception of Intel’s Rule of 75 retirement benefits (as those retirement benefits exist as of the effective date of this Agreement and as provided to you in writing as of that time) for which you are eligible under the standard plans and any other benefit that has vested under the express terms of a written Company benefit plan.

		
	9)
	409A treatment.  You and Intel intend that any amounts payable under this Agreement shall either be exempt from or comply with Code Section 409A so as not to subject you to payment of additional tax, penalty or interest imposed under that section and all regulations, guidance and other interpretive authority issued thereunder.

		
	10)
	Communications Plan and Farewell Events.  You and Intel will in good faith confer on a plan regarding the timing and content of the announcement of your plans to depart from Intel.  The timing of any public or broadly disseminated communication internally or externally describing your transition or departure, including any required securities filing, must be mutually agreed upon by you and Intel, as well as the portion of such communications describing your transition or departure.  Richard Taylor will work with you to organize farewell events to celebrate your accomplishments at Intel. 

		
	11)
	Service on Outside Boards.  During the Transition Period you shall devote your full business efforts and time to the job duties described in paragraph 1 and to your external job search.  This obligation, however, shall not preclude you from engaging in appropriate civic, charitable or religious activities, as long as they do not materially interfere with your job.  During the Transition Period, any outside activities, including serving on a Board of Directors, must be in compliance with Intel’s Code of Conduct.  Intel shall consider any request by you to serve on a company’s Board of Directors in good faith, and approval for your service on a Board of Directors for any entity that does not substantially compete with Intel’s business shall not be unreasonably withheld.

		
	12)
	Return of Company Property.  Within five (5) business days following the Separation Date, you agree that you will make a good faith effort to return to Intel (or with respect to electronically stored information, to destroy or delete) any and all Intel property (files, documents, laptop(s), tablet(s), smart phone(s), keys, credit cards etc.) and any and all Intel confidential information and property in your possession or electronically stored by you. You further agree that you will not delete or destroy any information that you are obligated to preserve pursuant to any preservation request that you have received from Intel’s counsel or court order about which you have previously been made aware of.  You agree to participate in an exit interview with Intel’s General Counsel or his designee.  Intel acknowledges that your laptop is owned by you and that you have no obligation to return said property.

		
	13)
	Consult with Counsel/Knowing and Voluntary Agreement. You have been advised in writing by this Agreement to consult with an attorney before signing this Agreement.  You acknowledge that you are knowingly and voluntarily signing this Agreement.

		
	14)
	Miscellaneous.  This Agreement and its Release constitute the complete, final and exclusive agreement between the Parties regarding compensation and benefit arrangements in connection with your termination of employment.  It is entered into without reliance on any promise or representation, written or oral, other than those expressly contained within it, and it supersedes any other such promises or representations.  This Agreement may not be modified or amended except in a writing signed by both you and a duly authorized representative of Intel.  This Agreement will bind both Parties’ heirs, personal representatives, successors and assigns, and will inure to the benefit of both Parties plus their heirs, successors and assigns.  If any provision of this Agreement is determined by a court of competent jurisdiction to be invalid or unenforceable, in whole or in part, that determination will not affect any other provision and the provision in question will be modified by the court so as to be rendered enforceable.  This Agreement is entered into under Oregon law.  It is not an admission of fault or liability by either you or Intel. 

		
	15)
	Expiration of Agreement.  This Agreement shall expire if it is not signed by you and returned to Matt Smith on or before July 1, 2015.   

3

Renée J James                    Date

/s/ Renée J. James                July 01, 2015            

INTEL CORPORATION                Date        

By:    /s/ Richard Taylor            July 01, 2015            
Richard Taylor
SVP, Director of Human Resources
    

Release

4

Release
(To be signed on or after the Separation Date) 
In exchange for the sufficient consideration offered by each Party to this Release Agreement (“Release”), including the Transition Payment as described in paragraph 4 and if applicable the pro-rated Transition Payment  described in paragraph 7 of the Transition Agreement  (“Agreement”) between Renée J. James (“you”) and Intel Corporation (“Intel” or the “Company”), the terms of which the underlying Agreement are incorporated herein by reference, and provided you signed  that Agreement, you and your heirs, executors, agents and assigns, forever release Intel and its directors, officers, employees, subsidiaries, and representatives from any and all claims, liabilities, obligations, suits, and actions, whether known or unknown, accrued or not accrued, that arise out of or are in any way related to events, acts, conduct, or omissions occurring prior to the date you sign this Release.   This Release includes, but is not limited to:  (1) all claims arising out of or in any way related to your employment with Intel, your resignation, or the termination of your employment; (2) claims under federal, state, or local laws such as Title VII of the Civil Rights Act of 1964, the Age Discrimination in Employment Act of 1967, the Americans with Disabilities Act, the Employee Retirement Income Security Act,  the Family and Medical Leave Act, the Uniformed Services Employment and Reemployment Rights Act, the National Labor Relations Act (“NLRA”), the Equal Pay Act of 1963, the Fair Labor and Standards Act of 1938 (“FLSA”), the Oregon Family Leave Act, Oregon statutes dealing with discrimination and retaliation in employment (e.g., ORS Chapters 654, 656, 659, and 659A) and wages and hours (e.g., ORS Chapters 652 and 653) and the California Fair Employment and Housing Act, the California Labor Code, the California Constitution (all as amended);  and (3) all common law, tort, contract, wage, tax, benefit, attorneys’ fees or other claims.  
You further represent that you have filed no lawsuits of any kind against Intel or any related entity or individual.  This Release includes a release of claims of discrimination or retaliation on the basis of workers’ compensation status, but does not include workers’ compensation claims. Nothing in this Release shall be construed to release (i) any rights or obligations arising out of the Agreement or the Indemnification Agreement entered into by and between you and Intel, (ii) your entitlement to any and all benefits under Intel’s Rule of 75 retirement plans, (iii) any of your rights in and to your Intel equity awarded pursuant to the Rule of 75, and subject to the terms and conditions of the relevant Intel Equity Incentive Plans, the particular Notice of Grant for each grant, and the particular grant agreement linked to the Notice of Grant, including the restrictions that arise from your status as one of Intel’s Top 50 highest paid officers for the current period,  including without limitation, your right to sell or hold your equity, and information rights regarding your Intel equity, if any, or (iv) your rights in and to any employee retirement plans to the fullest extent provided for in the plans.  Also excluded from this Release are any claims which by law cannot be waived in a private agreement between employer and employee, including future claims such as claims for breach of this Agreement.  
Release of Unknown Claims.  You acknowledge that there may exist claims or facts in addition to or different from those that are now known or believed by you to exist.  You acknowledge that you have read and understand Section 1542 of the California Civil Code which states:  “A general release does not extend to claims which the creditor does not know or suspect to exist in his or her favor at the time of executing the release, which if known by him or her must have materially affected his or her settlement with the debtor.”  You hereby relinquish all rights and benefits under that section and any other similar law of any state or jurisdiction dealing with the release of unknown claims.  Each Party agrees that this release is fairly and knowingly made. 
Additional Release Exclusions/Employee Protections.  Nothing in this Release or any other part of this Agreement limits your rights to file a charge with or participate in an investigation conducted by the Equal Employment Opportunity Commission ("EEOC") or any state or local fair employment practices agency or to provide information to the Securities and Exchange Commission. However, you hereby waive any right to recover money or other relief should the EEOC or another agency or any individual pursue a claim on your behalf.    

5

Time To Consider and Revoke/Knowing and Voluntary Agreement.  You acknowledge that: (a) you have had at least twenty-one (21) days from the date you received the Agreement and this Release to consider this Release (although you may choose to sign the Release at any time on or after your Separation Date); (b) you have seven (7) days after you sign this Release to revoke it (“Revocation Period”); and (c) this Release will not be effective until you have signed it and returned it to Matt Smith in Intel’s Human Resources Department and the Revocation Period has expired (the “Effective Date”).  You acknowledge that you are knowingly and voluntarily signing this Release.
Miscellaneous. You acknowledge that the consideration described in paragraph 4 and if applicable paragraph 7of the Agreement is in addition to anything of value to which you were already entitled.  You further acknowledge that you have been advised in writing by this Release to consult with an attorney prior to signing this Release. The Agreement and this Release are entered into without reliance on any promise or representation, written or oral, other than those expressly contained in them and together they supersede any other such oral promises or representations.  If there is any conflict between the Agreement and the Release, the Release shall control.  This Release may not be modified or amended except in a writing signed by both you and a duly authorized representative of Intel. This Release will bind both Parties’ heirs, personal representatives, successors and assigns, and will inure to the benefit of both Parties plus their heirs, successors and assigns.  If any provision of this Release is determined to be invalid or unenforceable, in whole or in part, this determination will not affect any other provision, and the provision in question will be modified by the court so as to be rendered enforceable.  This Release will be deemed to have been entered into and will be construed and enforced in accordance with the laws of the state of Oregon.  
If this Release is acceptable to you, please sign below on or after the Separation Date and return the original to Matt Smith in Human Resources No Later than the 21st day after your Separation Date.  

Accepted and Agreed:

	
				
	Renée J James
	 
	Date
	 

	 
	 
	 
	 

	 
	 
	 
	 

	 
	 
	 
	 

	 
	 
	 
	 

	 
	 
	 
	 

	INTEL CORPORATION
	 
	Date
	 

	 
	 
	 
	 

	 
	 
	 
	 

	By:
	 
	 
	 

	 
	 
	 
	 

	Richard Taylor
	 
	 
	 

	SVP, Director of Human Resources
	 
	 
	 

    
    

6

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