Document:

Exhibit 10.1

 

 

EXECUTION VERSION

 

 

	
        Published CUSIP
        Numbers:

        25764JAC5 (Transaction)

        25764JAD3 (Revolver)

        

        

        $400,000,000

        FIRST AMENDMENT DATED AS OF OCTOBER 28, 2014

        to

        CREDIT AGREEMENT

        dated as of December 7, 2012

        among

        DONALDSON COMPANY, INC.,

        VARIOUS SUBSIDIARIES THEREOF,

        WELLS FARGO BANK, NATIONAL ASSOCIATION

        as Administrative Agent

        and

        L/C Issuer,

        U.S. BANK NATIONAL ASSOCIATION,

        as Syndication Agent,

        and

        

        the other Lenders party hereto

         

        WELLS FARGO SECURITIES, LLC

        and

        U.S. BANK NATIONAL ASSOCIATION,

        as Joint Lead Arrangers and Joint Book Managers

        

        

    	 

    	 

    

This FIRST AMENDMENT TO CREDIT
AGREEMENT (this “Amendment”) is dated as of October 28, 2014 and is by and among

(i)                  
DONALDSON COMPANY, INC., a Delaware corporation (the “Company”);

(ii)                
the Lenders party to the Credit Agreement referenced below; and

(iii)               
WELLS FARGO BANK, NATIONAL ASSOCIATION, as Administrative Agent (in such capacity, the “Administrative
Agent”).

Unless otherwise indicated,
all capitalized terms used herein and not otherwise defined shall have the respective meanings provided such terms in the Credit
Agreement referred to below.

W I T N E S S E T H :

WHEREAS, the Company, the
financial institutions party thereto (the “Existing Lenders”) and the Administrative Agent are parties to a
credit agreement dated as of December 7, 2012 (the “Credit Agreement”); and

WHEREAS, the parties hereto
wish to amend the Credit Agreement on the terms and conditions set forth herein;

WHEREAS, certain Existing
Lenders wish to increase the amount of their Revolving Credit Commitments so that, giving effect to such increase, the amount of
their respective Revolving Credit Commitments will be as set forth opposite their respective names on Exhibit A attached
hereto; and

WHEREAS, certain financial
institutions which are not currently parties to the Credit Agreement and which are identified as new Lenders on Exhibit A
hereto (each a “New Lender”), wish to become Lenders under the Credit Agreement with the respective Revolving
Credit Commitments set forth opposite their respective names on Exhibit A attached hereto;

NOW, THEREFORE, in consideration
of the premises set forth above, the terms and conditions contained herein, and other good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, the parties hereto have agreed to the following amendment to the Credit Agreement.

1.                  
Amendments to Credit Agreement.  Upon the Effective Date (as defined below),
the Credit Agreement shall be amended as follows:

(a)                
The definition of “LIBOR” set forth in Section 1.01 of the Credit Agreement is
hereby amended to add the following as the final sentence thereof:

Notwithstanding the foregoing, if at any
time LIBOR (determined as provided above) shall be less than zero, LIBOR shall be deemed to be zero for all purposes of this Agreement.

    	-1-

    	 

    

 

(b)                
The definition of “Maturity Date” set forth in Section 1.01 of the Credit Agreement
is hereby amended and restated in its entirety to read as follows: 

“Maturity Date” means
October 28, 2019.

(c)                
The definitions of “Sanctioned Country” and “Sanctioned Person” set
forth in Section 1.01 of the Credit Agreement are hereby amended and restated in their entirety to read as follows:

“Sanctioned
Country” means a country subject to a sanctions program (a) identified on the list maintained by OFAC and
available at http://www.treasury.gov/resource-center/sanctions/Programs/Pages/Programs.aspx, or as otherwise published from
time to time or (b) imposed, administered or enforced by the United Nations Security Council, the European Union or Her
Majesty’s Treasury of the United Kingdom (any such program referenced in (a) or (b) being referred to as
“Sanctions”).

“Sanctioned Person” means
(a) a Person named on the list of “Specially Designated Nationals and Blocked Persons” maintained by OFAC available
at http://www.treasury.gov/resource-center/sanctions/SDN-List/Pages/default.aspx, or as otherwise published from time to time,
or (b) (i) an agency of the government of a Sanctioned Country, (ii) an organization controlled by a Sanctioned Country, or (iii)
a person resident in a Sanctioned Country, to the extent subject to Sanctions.

(d)                
Section 1.01 of the Credit Agreement is amended to add thereto the following two definitions
in alphabetical order:

“Anti-Corruption Laws”
means all laws, rules, and regulations of any jurisdiction applicable to the Borrower or its Subsidiaries from time to time concerning
or relating to bribery or corruption.

“Anti-Terrorism Laws”
has the meaning specified in Section 5.14.

(e)                
Section 2.16(a) of the Credit Agreement is hereby amended by deleting the reference in the
first proviso thereto to “$150,000,000” and replacing it with a reference to “$200,000,000”.

(f)                 
Section 5.14 of the Credit Agreement is amended and restated in its entirety to read as follows:

    	-2-

    	 

    

OFAC, Anti-Terrorism;
Etc.  Neither the Company nor any of its Subsidiaries or, to their knowledge, any of their Related Parties (a) is
an “enemy” or an “ally of the enemy” within the meaning of Section 2 of the Trading with the Enemy
Act of the United States (50 U.S.C. App. §§ 1 et seq.), (b) is in violation of (i) the Trading with the Enemy Act, (ii)
any of the foreign assets control regulations of the United States Treasury Department (31 CFR, Subtitle B, Chapter V) or any enabling
legislation or executive order relating thereto, (iii) any Sanctions or (iv) the PATRIOT Act (collectively, the “Anti-Terrorism
Laws”) or (c) is a Sanctioned Person. No part of the proceeds of any Credit Extension will be unlawfully used directly
or indirectly to fund any operations in, finance any investments or activities in or make any payments to, a Sanctioned Person
or a Sanctioned Country, or in any other manner that will result in any violation by any Person (including any Lender, any Arranger,
the Administrative Agent or the L/C Issuer) of any Anti-Terrorism Laws. The Company has implemented and maintains in effect
policies and procedures designed to ensure compliance by the Company, its Subsidiaries and their respective directors, officers,
employees and agents with Anti-Corruption Laws and applicable Sanctions, and the Borrower, its Subsidiaries and their respective
officers and employees and to the knowledge of the Borrower its directors and agents, are in compliance with Anti-Corruption Laws
in all material respects. 

(g)                
Section 6.11 of the Credit Agreement is amended to add the following as the second sentence
thereof:

Without limiting the foregoing, the Company
shall not use or permit the use of the proceeds of any Credit Extension in a manner inconsistent with its representation and warranty
set forth in the second sentence of Section 5.14.

(h)                Section 11.01(f) is amended in and restated in its entirety to read as follows:

(f) amend Section
1.09, amend the definition of “Offshore Currency” or amend the first sentence of Section 2.15 without,
in each case, the written consent of each Lender;

(i)                  
The first sentence of Section 11.07 of the Credit Agreement is hereby amended and restated
in its entirety to read as follows: 

The Administrative Agent, acting solely
for this purpose as an agent of the Borrowers, shall maintain at the Administrative Agent’s office or, in the case of Wells
Fargo, any of its offices in Charlotte, North Carolina, a copy of each Assignment and Assumption and each Lender Joinder Agreement
delivered to it and a register for the recordation of the names and addresses of the Lenders, and the Commitment of, and principal
amounts of (and stated interest on) the Loans owing to, each Lender pursuant to the terms hereof from time to time (the “Register”).

(j)                 
Schedule 2.01 of the Credit Agreement is hereby amended and restated in its entirety to be
in the form of Schedule 2.01 attached hereto as Exhibit A.

(k)                
Schedule 7.01 of the Credit Agreement is hereby amended and restated in its entirety to be
in the form of Schedule 7.01 attached hereto as Exhibit B.

    	-3-

    	 

    

 

(l)                  
Schedule 7.03 of the Credit Agreement is hereby amended and restated in its entirety to be
in the form of Schedule 7.03 attached hereto as Exhibit C.

2.                  
New Lenders.  The parties hereto agree that, as of the Effective Date, each
New Lender shall become a “Lender” under the Credit Agreement, as amended hereby, with all the rights and duties of
a “Lender” thereunder and with a Commitment in the amount set forth opposite its name on Exhibit A attached
hereto.

3.                  
Representations and Warranties.  The Company hereby represents and warrants
that both immediately before and immediately after the effectiveness hereof and any Credit Extensions being made on the Effective
Date:

(a)                
The representations and warranties contained in Article V
of the Credit Agreement are true and correct in all material respects on and as of the Effective Date with the same effect as if
made on and as of the Effective Date, except for any representation and warranty made as of an earlier date, which representation
and warranty is true and correct in all material respects as of such earlier date.

(b)                
Since July 31, 2014, nothing has occurred (singly or in aggregate with all other occurrences)
that has had, or could reasonable be expected to have, a Material Adverse Effect.

(c)                
No Default or Event of Default has occurred and is continuing as of the Effective Date.

4.                  
Effectiveness.  This Amendment is a Loan Document and shall become effective
upon the date (the “Effective Date”) of the satisfaction of all of the following conditions:

(a)                
the execution and delivery hereof by the Company, the Administrative Agent and each Existing
Lender and New Lender identified, in either case, as having a Commitment on Exhibit A hereto;

(b)                
the execution and delivery by Donaldson Capital, Inc. of an Affirmation of Guaranty in the
form of Exhibit D hereto;

(c)                
the execution and delivery by the Company to the Administrative Agent for the benefit of each
Existing Lender or New Lender requesting the same at least three (3) Business Days prior to the Effective Date of an executed Note
reflecting the new or increased Commitment of such Lender resulting herefrom;

(d)                
subject to Section 5 hereof, all outstanding principal, interest, fees and other amounts owing
under the Credit Agreement having been repaid in full on the Effective Date (it being understood that such repayment may be made
out of the proceeds of Loans made on the Effective Date by the Lenders in accordance with their new Pro Rata Share giving effect
to this Amendment);

    	-4-

    	 

    

 

(e)                
the Company shall have paid on the Effective Date to the Administrative Agent all separately
agreed fees and expenses relating hereto (including upfront and consent fees payable for the account of the financial institutions
executing this Amendment and legal fees of counsel to the Administrative Agent);

(f)                 
the delivery to the Administrative Agent of (i) a legal opinion of Dorsey & Whitney, L.L.P.,
special counsel to the Company, in form and substance reasonably satisfactory to the Administrative Agent and (ii) such corporate
certificates, evidence of corporate standing and authorization and other documents and certificates as the Administrative Agent
shall reasonably request; and

(g)                
receipt by the applicable Lenders of all documentation and other information required by applicable
“know your customer” and anti-money laundering laws and requested by such Lenders prior to the Effective Date.

5.                  
Waiver.  Each Existing Lender party hereto hereby (a) waives any notice of
the prepayment of Loans contemplated by Section 4(c) hereof to the extent otherwise required by Section 2.06 of the Credit Agreement
and (b) waives any entitlement under Section 3.04 of the Credit Agreement to any and all amounts which would otherwise have
been payable thereunder in respect of the repayment of Loans contemplated by Section 4(c) hereof.

6.                  
References; Effect; Etc.  (a) Upon the effectiveness hereof, each reference
to the Credit Agreement in the Credit Agreement or any other Loan Document shall mean and be a reference to the Credit Agreement
as modified hereby. Except as specifically amended hereby, the Credit Agreement and the other Loan Documents shall remain in full
force and effect and are hereby ratified and confirmed. For the avoidance of doubt, the increase in Commitments effected hereby
shall not be deemed a utilization of the incremental commitment mechanism set forth in Section 2.16 of the Credit Agreement and
such section shall remain in full force and effect permitting, subject to the terms thereof (as amended hereby), Incremental Loan
Commitments aggregating not in excess of $200,000,000 after Effective Date.

(b)                
Upon the Effective Date, the obligation of the Existing Lenders and the New Lenders to participate
in the credit exposure associated with the Outstanding Amount of all L/C Obligations shall be automatically adjusted such that,
after giving effect to such adjustments, (i) the credit exposure of each Lender with respect thereto is equal to its Pro Rata Share
(as set forth on Exhibit A hereto) of the Outstanding Amount of all L/C Obligations and (ii) Existing Lenders which do not have
a Commitment under the Credit Agreement as amended hereby have no further participation rights or obligations with respect thereto.

7.                  
No Waiver.  The execution, delivery and effectiveness of this Amendment shall
not, except as expressly provided herein, operate as a waiver of any right, power or remedy of the Administrative Agent or the
Lenders, nor constitute a waiver of or consent to any provision of the Credit Agreement or any other Loan Documents executed and/or
delivered in connection therewith.

8.                  
Counterparts.  This Amendment may be executed in any number of counterparts
(and by the different parties hereto on separate counterparts), each of which shall constitute an original, but all of which when
taken together shall constitute a single contract. Delivery of an executed signature page of this Amendment or the other documents
contemplated hereby by facsimile or electronic transmission shall be effective as delivery of a manually executed counterpart thereof.

    	-5-

    	 

    

 

9.                  
Governing Law.  THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE
WITH, THE LAW OF THE STATE OF NEW YORK APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED ENTIRELY WITHIN SUCH STATE; PROVIDED
THAT THE ADMINISTRATIVE AGENT AND EACH LENDER SHALL RETAIN ALL RIGHTS ARISING UNDER FEDERAL LAW.

10.               
Headings.  Section headings in this Amendment are included herein for convenience
of reference only and shall not constitute a part of this Amendment for any other purpose.

*        *        *

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	-6-

    	 

    

 

IN WITNESS WHEREOF, the parties hereto
have caused their duly authorized signatories to execute and deliver this Amendment as of the date first above written.

 

	 	DONALDSON COMPANY, INC.
	 	 	 
	 	By:  	/s/ James F. Shaw
	 	 	Name:  	James F. Shaw
	 	 	Title: 	Vice President and Chief Financial Officer

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

[Signature Page to First Amendment to Credit Agreement]

 

    	 

    	 

    

 

	 	WELLS FARGO BANK, NATIONAL ASSOCIATION, as Administrative Agent, L/C Issuer and a Lender
	 	 	 
	 	 	 
	 	 	 
	 	By:  	/s/ Mark Holm
	 	 	Name:  	Mark Holm
	 	 	Title: 	Managing Director

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

[Signature Page to First Amendment to Credit Agreement]

 

    	 

    	 

    

 

	 	U.S. BANK NATIONAL ASSOCIATION, as a Lender
	 	 	 
	 	 	 
	 	 	 
	 	By:  	/s/ Edward B. Hanson
	 	 	Name:  	Edward B. Hanson
	 	 	Title: 	Vice President

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

[Signature Page to First Amendment to Credit Agreement]

 

    	 

    	 

    

 

	 	THE BANK OF TOKYO-MITSUBISHI UFJ. LTD., as a Lender
	 	 	 
	 	 	 
	 	 	 
	 	By:  	/s/ Thomas J. Sterr
	 	 	Name:  	Thomas J. Sterr
	 	 	Title: 	Authorized Signatory

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

[Signature Page to First Amendment to Credit Agreement]

 

    	 

    	 

    

 

	 	BANK OF THE WEST, A CALIFORNIA BANKING CORPORATION, as a Lender
	 	 	 
	 	 	 
	 	 	 
	 	By:  	/s/ Ole Koppand
	 	 	Name:  	Ole Koppand
	 	 	Title: 	Vice President

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

[Signature Page to First Amendment to Credit Agreement]

  

    	 

    	 

    

 

	 	JPMORGAN CHASE BANK, N.A., as a Lender
	 	 	 
	 	 	 
	 	 	 
	 	By:  	/s/ Krys Szremski
	 	 	Name:  	Krys Szremski 
	 	 	Title: 	Vice President

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

[Signature Page to First Amendment to Credit Agreement]

 

    	 

    	 

    

 

	 	LLOYDS BANK PLC, as a Lender
	 	 	 
	 	 	 
	 	 	 
	 	By:  	/s/ Dennis McClellan
	 	 	Name:  	Dennis McClellan
	 	 	Title: 	Assistant Vice President
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	By:  	/s/ Joel Slomko
	 	 	Name:   	Joel Slomko
	 	 	Title: 	Assistant Vice President

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

[Signature Page to First Amendment to Credit Agreement]

 

    	 

    	 

    

 

	 	MIZUHO BANK (USA), as a Lender
	 	 	 
	 	 	 
	 	 	 
	 	By:  	Takayuki Tomii
	 	 	Name:  	Takayuki Tomii
	 	 	Title: 	Senior Vice President

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

[Signature Page to First Amendment to Credit Agreement]

  

    	 

    	 

    

 

	 	BRANCH BANKING AND TRUST COMPANY, as a Lender
	 	 	 
	 	 	 
	 	 	 
	 	By:  	/s/ Kurt W. Anstaett
	 	 	Name:  	Kurt W. Anstaett
	 	 	Title: 	Senior Vice President

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

[Signature Page to First Amendment to Credit Agreement]

  

    	 

    	 

    

EXHIBIT
A

SCHEDULE 2.01

COMMITMENTS

AND PRO RATA SHARES

	Lender	Commitment	Pro Rata Share
	Wells Fargo Bank, National Association	$72,500,000	18.13%
	U.S. Bank National Association	$72,500,000	18.13%
	The Bank of Tokyo-Mitsubishi UFJ, Ltd.	$45,000,000	11.25%
	Bank of the West, a California Banking Corporation	$45,000,000	11.25%
	JPMorgan Chase Bank, N.A.	$45,000,000	11.25%
	Lloyds Bank plc	$45,000,000	11.25%
	Mizuho Bank (USA)	$45,000,000	11.25%
	Branch Banking and Trust Company	$30,000,000	7.50%
	Total	$400,000,000	100.00%

 

* means the Lender is a New Lender (as defined in the
First Amendment hereto dated as of October 28, 2014).

 

 

 

 

 

 

 

 

 

 

    	A-1

    	 

    

EXHIBIT
B

SCHEDULE 7.01

EXISTING LIENS

 

As of July 31, 2014

 

 

 

	Various capitalized leases in the U.S.	$3,170,791
	 	 
	Various capitalized leases in Japan	$       6,172

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 

    	 

    

EXHIBIT
C

SCHEDULE 7.03

EXISTING INVESTMENTS

 

As of July 31, 2014

 

 

	Investment in Advanced Filtration Systems Inc.	$11,817,000
	 	 
	Investment in PT Panata Jaya Mandiri	$  6,388,763
	 	 
	Investment in Rashed al-Rashed & Sons-Donaldson Ltd.	$  3,192,391
	 	 
	Investment in Applied Membrane Technology Inc.	$     225,094

 

 

 

 

 

 

 

 

 

 

    	 

    	 

    

EXHIBIT
D

AFFIRMATION
OF GUARANTY 

The undersigned (the “Guarantor”)
acknowledges receipt of a copy of that certain First Amendment to Credit Agreement dated as of the date hereof (the “Amendment”)
relating to the Credit Agreement dated as of December 7, 2012 (the “Credit Agreement”) referred to therein,
consents to the Amendment and each of the transactions referenced therein, hereby reaffirms its obligations under the Guaranty
and agrees that all references in the Guaranty to the “Credit Agreement” shall hereafter mean and be a reference to
the Credit Agreement as amended by the Amendment. Capitalized terms used herein, but not otherwise defined herein, shall have the
meanings ascribed to such terms in the Credit Agreement. Although the Guarantor has been informed of the matters set forth herein
and has acknowledged and consented to same, the Guarantor understands that neither the Administrative Agent nor any Lender has
any obligation to inform the Guarantor of such matters in the future or to seek the Guarantor’s acknowledgment or consent
to future amendments or waivers, and nothing herein or in any Loan Document shall create such a duty.

 

 

 

 

 

 

 

 

 

 

 

 

    	 

    	 

    

IN WITNESS WHEREOF, the
Guarantor has caused this Affirmation of Guaranty to be executed and delivered as of the date of the Amendment.

	 	DONALDSON CAPITAL, INC.
	 	 	 
	 	 	 
	 	 	 
	 	By:  	 
	 	 	Name:  	 
	 	 	Title: 	 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

[Signature Page to Affirmation of Guaranty]INTC ex10.1 10Q 9/27/14

                                        
                
Exhibit 10.1
INTEL CORPORATION
2006 EQUITY INCENTIVE PLAN
STANDARD TERMS AND CONDITIONS RELATING TO RESTRICTED STOCK UNITS GRANTED ON AND AFTER JANUARY 23, 2014 UNDER THE INTEL CORPORATION 2006 EQUITY INCENTIVE PLAN  (standard OSU program)

		
	1.
	TERMS OF RESTRICTED STOCK UNIT

Unless provided otherwise in the Notice of Grant, these standard terms and conditions ("Standard Terms") apply to Restricted Stock Units (“RSUs”) granted to you, a U.S. employee, under the Intel Corporation 2006 Equity Incentive Plan (the "2006 Plan").  Your Notice of Grant, these Standard Terms and the 2006 Plan constitute the entire understanding between you and Intel Corporation (the “Corporation”) regarding the RSUs identified in your Notice of Grant.  
		
	2.
	VESTING OF RSUs 

Provided that you remain continuously employed by the Corporation or a Subsidiary on a full time basis from the Grant Date specified in the Notice of Grant through the vesting date that is three years and one month after the grant date (as specified in the Notice of Grant), then as of the vesting date the RSUs shall vest and be converted into the right to receive the number of shares of the Corporation’s Common Stock, $.001 par value (the “Common Stock”), determined by multiplying the Target Number of Shares as specified on the Notice of Grant by the conversion rate as set forth below, and except as otherwise provided in these Standard Terms.  If a vesting date falls on a weekend or any other day on which the NASDAQ Stock Market ("NASDAQ") is not open, affected RSUs shall vest on the next following NASDAQ business day.  
RSUs will vest to the extent provided in and in accordance with the terms of the Notice of Grant and these Standard Terms.  If your status as an Employee terminates for any reason except death, Disablement (defined below) or Retirement (defined below), prior to the vesting date set forth in your Notice of Grant, your unvested RSUs and dividend equivalents will be cancelled.
		
	3.
	CONVERSION OF RSUs 

		
	(a)
	The conversion rate of RSUs into the right to receive a number of shares of Common Stock depends on the Corporation’s Total Stockholder Return (“Intel TSR”) relative to the Total Stockholder Return of the Tech 15 (“Tech 15 TSR”) at the end of the Performance Period, as those terms are defined in this section 3.  The conversion rate of RSUs into the right to receive a number of shares of Common Stock shall be determined in accordance with following: 

		
	(1)
	If the Intel TSR and Tech 15 TSR are within 1 percentage point, the conversion rate shall be 100%.  

		
	(2)
	If the Intel TSR is greater than the Tech 15 TSR, the conversion rate shall be 100% plus four times the difference in percentage points; provided that the maximum conversion rate is 200%.

		
	(3)
	If the Tech 15 TSR is greater than the Intel TSR, the conversion rate shall be 100% minus two times the difference in percentage points; provided that, if the Tech 15 TSR exceeds the Intel TSR by more than 25 percentage points, then the conversion rate shall be 0%.

		
	(4)
	In the event that the conversion rate results in the right to receive a partial share of Common Stock, the conversion rate shall be rounded down so that the RSUs shall not convert into the right to receive the partial share.

By way of illustration, assume the Tech 15 TSR is 100%.  If the Intel TSR equals 100.5%, the conversion rate is 100%, so that your RSUs convert into the right to receive 100% of the Target Number of Shares.  If the Intel TSR is 105%, the difference is 5 percentage points and the conversion rate is 120%, so that your RSUs convert into the right to receive 120% of the Target Number of Shares.  If the Intel TSR is 90%, the difference is 10 percentage points and the conversion rate is 80%, so that your RSUs convert into the right to receive 80% of the Target Number of Shares.  If the Intel TSR is 70%, the difference is more than 25 percentage points, so the conversion rate is 0%
		
	(b)
	Intel TSR is a percentage (to the third decimal point) derived by:

		
	(1)
	A numerator that is difference between the average closing sale price of Common Stock during the 3 months following and including the grant date subtracted from the average closing sale price of Common Stock during the 3 months prior to and including the end of the Performance Period, plus any dividends paid or payable with respect to a ex-dividend date that occurs during the Performance Period; and 

		
	(2)
	A denominator that is the average closing sale price of Common Stock during the 3 months following and including the grant date.

		
	(c)
	Tech 15 TSR is the median TSR of the fifteen technology companies included in the Corporation’s peer group for determining executive compensation, as determined by the Compensation Committee prior to the grant date, and regardless of any subsequent change after the grant date.

TSR of each stock for purposes of the Tech 15 TSR is a percentage (to the third decimal point) derived by:
		
	(1)
	A numerator that is the difference between the weighted average closing sale price of common stock during the 3 months following and including the grant date subtracted from the weighted average closing sale price of common stock during the 3 months prior to and including the end of the Performance Period, plus any dividends paid or payable with respect to an ex-dividend date that occurs during the Performance Period; and 

		
	(2)
	A denominator that is the average closing sale price of common stock during the 3 months following and including the grant date; and 

		
	(d)
	For purposes of determining TSR of any company (including the Corporation):

		
	(1)
	Any dividend paid or payable in cash shall be valued at its cash amount (without any deemed reinvestment and without any adjustments for applicable taxes or tax withholding).  Any dividend paid in securities with a readily ascertainable fair market value shall be valued at the market value of the securities as of the dividend ex-dividend date.  Any dividend paid in other property shall be valued based on the value assigned to such dividend by the paying company for tax purposes.  

		
	(2)
	Any company included in the Tech 15 TSR on the grant date that does not have a stock price that is quoted on a national securities exchange at the end of the Performance Period will be factored into the median calculation based on its TSR from the grant date until the last date on which its stock price was last quoted on a national securities exchange in the United States.

		
	(3)
	The Compensation Committee may equitably adjust a company's TSR for equity restructuring transactions such as, but not limited to, a stock split, combination of shares, extraordinary dividend of cash and/or assets, recapitalization or reorganization.

		
	(4)
	Any company included in the Tech 15 TSR on the grant date that has a price of stock or a price of a security backed by stock that is quoted on a national securities exchange in the United States and on a national securities exchange outside the United States will be factored into the median calculation based on its price of stock or a price of a security backed by stock quoted on the national securities exchange in the United States.  

		
	(e)
	Performance Period is the period beginning with the grant date and ending three years later on the third anniversary of the grant date.  If the third anniversary of the grant date falls on a weekend or any other day on which the NASDAQ is not open, the Performance Period shall end on the next following NASDAQ business day. If for any reason the Corporation (including any successor corporation) ceases to have its stock price quoted on a national securities exchange, the Performance Period shall end as of the last date that the stock price is quoted on a national securities exchange. 

		
	4.
	DIVIDEND EQUIVALENTS

Dividend equivalents will vest at the same time as their corresponding RSUs and convert into the right to receive shares of Common Stock.  Dividend equivalents will be paid on the number of shares of the Corporation’s Common Stock into which this RSU is converted by determining the sum of the dividends paid or payable on such number of shares of Common Stock with respect to each ex-dividend date that occurs between the Grant Date and the vesting date specified in the Notice of Grant (without any interest or compounding), divided (to the third decimal point) by the average of the highest and lowest sales prices of the Common Stock as reported by NASDAQ on the last day of the Performance Period.  The quotient derived from the previous sentence shall be rounded down so that dividend equivalents will convert into the right to receive whole shares of Common Stock.  
		
	5.
	SETTLEMENT INTO COMMON STOCK

Shares of Common Stock will be issued or become free of restrictions as soon as practicable following the vesting date of the RSUs and dividend equivalents, provided that you have satisfied your tax withholding obligations as specified under Section 11 of these Standard Terms and you have completed, signed and returned any documents and taken any additional action that the Corporation deems appropriate to enable it to accomplish the delivery of the shares of Common Stock.  The shares of Common Stock will be issued in your name (or may be issued to your executor or personal representative, in the event of your death or Disablement), and may be effected by recording shares on the stock records of the Corporation or by crediting shares in an account established on your behalf with a brokerage firm or other custodian, in each case as determined by the Corporation.  In no event will the Corporation be obligated to issue a fractional share.
Notwithstanding the foregoing, (i) the Corporation shall not be obligated to deliver any shares of the Common Stock during any period when the Corporation determines that the conversion of a RSU or the delivery of shares hereunder would violate any laws of the United States or your country of residence or employment and/or may issue shares subject to any restrictive legends that, as determined by the Corporation’s counsel, is necessary to comply with securities or other regulatory requirements, and (ii) the date on which shares are issued or credited to your account may include a delay in order to provide the Corporation such time as it determines appropriate to calculate Intel TSR and Tech 15 TSR, for the Committee (as defined below) to certify performance results, to calculate and address tax withholding and to address other administrative matters.  The number of shares of Common Stock into which RSUs and dividend equivalents convert as specified in the Notice of Grant shall be adjusted for stock splits and similar matters as specified in and pursuant to the 2006 Plan.  
		
	6.
	SUSPENSION OR TERMINATION OF RSU FOR MISCONDUCT

If at any time the Committee of the Board of Directors of the Corporation established pursuant to the 2006 Plan (the "Committee"), including any Subcommittee or “Authorized Officer” (as defined in Section 8(a)(vi) of the 2006 Plan) notifies the Corporation that they reasonably believe that you have committed an act of misconduct as described in Section 8(a)(vi) of the 2006 Plan (embezzlement, fraud, dishonesty, nonpayment of any obligation owed to the Corporation, breach of fiduciary duty or deliberate disregard of Corporation rules resulting in loss, damage or injury to the Corporation, an unauthorized disclosure of any Corporation trade secret or confidential information, any conduct constituting unfair competition, inducing any customer to breach a contract with the Corporation or inducing any principal for whom the Corporation acts as agent to terminate such agency relationship), the vesting of your RSUs and dividend equivalents may be suspended pending a determination of whether an act of misconduct has been committed. If the Corporation determines that you have committed an act of misconduct, all RSUs and dividend equivalents not vested as of the date the Corporation was notified that you may have committed an act of misconduct shall be cancelled and neither you nor any beneficiary shall be entitled to any claim with respect to the RSUs and dividend equivalents whatsoever. Any determination by the Committee or an Authorized Officer with respect to the foregoing shall be final, conclusive, and binding on all interested parties. 

		
	7.
	TERMINATION OF EMPLOYMENT

Except as expressly provided otherwise in these Standard Terms, if your employment by the Corporation terminates for any reason, whether voluntarily or involuntarily, other than on account of death, Disablement (defined below) or Retirement (defined below), all RSUs and dividend equivalents not then vested shall be cancelled on the date of employment termination, regardless of whether such employment termination is as a result of a divestiture or otherwise.   For purposes of this Section 7, your employment with any partnership, joint venture or corporation not meeting the requirements of a Subsidiary in which the Corporation or a Subsidiary is a party shall be considered employment for purposes of this provision if either (a) the entity is designated by the Committee as a Subsidiary for purposes of this provision or (b) you are specifically designated as an employee of a Subsidiary for purposes of this provision.
For purposes of this provision, your employment is not deemed terminated if, prior to sixty (60) days after the date of termination from the Corporation or a Subsidiary, you are rehired by the Corporation or a Subsidiary on a basis that would make you eligible for future grants of Intel RSUs and dividend equivalents, nor would your transfer from the Corporation to any Subsidiary or from any one Subsidiary to another, or from a Subsidiary to the Corporation be deemed a termination of employment.  
		
	8.
	DEATH

Except as expressly provided otherwise in these Standard Terms, if you die while employed by the Corporation, your RSUs and dividend equivalents will become one hundred percent (100%) vested.
		
	9.
	DISABILITY

Except as expressly provided otherwise in these Standard Terms, if your employment terminates as a result of Disablement, your RSUs and dividend equivalents will become one hundred percent (100%) vested upon the later of the date of your termination of employment due to your Disablement or the date of determination of your Disablement.
For purposes of this Section 9, “Disablement” shall be determined in accordance with the standards and procedures of the then-current Long Term Disability Plan maintained by the Corporation or the Subsidiary that employs you, and in the event you are not a participant in a then-current Long Term Disability Plan maintained by the Corporation or the Subsidiary that employs you, “Disablement” shall have the same meaning as disablement is defined in the Intel Long Term Disability Plan, which is generally a physical condition arising from an illness or injury, which renders an individual incapable of performing work in any occupation, as determined by the Corporation.  
		
	10.
	RETIREMENT

Except as expressly provided otherwise in these Standard Terms, if your employment terminates as a result of Retirement, your RSUs and dividend equivalents will become one hundred percent (100%) vested upon the date of your Retirement.  For purposes of this Section 10, “Retirement” shall mean:
		
	(a)
	You terminate employment with the Corporation at or after age 60 (“Standard Retirement”); or

		
	(b)
	You terminate employment with the Corporation and as of the termination date your age plus years of service (in each case measured in complete, whole years) equals or exceeds 75 (“Rule of 75”).

		
	11.
	TAX WITHHOLDING

RSUs and dividend equivalents are taxable upon vesting based on the Market Value on the date of vesting.  To the extent required by applicable federal, state or other law, you shall make arrangements satisfactory to the Corporation for the payment and satisfaction of any income tax, social security tax, payroll tax, or payment on account of other tax related to withholding obligations that arise by reason of vesting of a RSU and, if applicable, any sale of shares of the Common Stock.  The Corporation shall not be required to issue or lift any restrictions on shares of the Common Stock pursuant to your RSUs and dividend equivalents or to recognize any purported transfer of shares of the Common Stock until such obligations are satisfied.

Unless provided otherwise by the Committee, these obligations will be satisfied by the Corporation withholding a number of shares of Common Stock that would otherwise be issued under the RSUs and dividend equivalents that the Corporation determines has a Market Value sufficient to meet the tax withholding obligations.  In the event that the Committee provides that these obligations will not be satisfied under the method described in the previous sentence, you authorize UBS Financial Services Inc., or any successor plan administrator, to sell a number of shares of Common Stock that are issued under the RSUs and dividend equivalents, which the Corporation determines is sufficient to generate an amount that meets the tax withholding obligations plus additional shares to account for rounding and market fluctuations, and to pay such tax withholding to the Corporation.  The shares may be sold as part of a block trade with other participants of the 2006 Plan in which all participants receive an average price.  For this purpose, "Market Value" will be calculated as the average of the highest and lowest sales prices of the Common Stock as reported by NASDAQ on the day your RSUs and dividend equivalents vest.  The future value of the underlying shares of Common Stock is unknown and cannot be predicted with certainty.
You are ultimately liable and responsible for all taxes owed by you in connection with your RSUs and dividend equivalents, regardless of any action the Corporation takes or any transaction pursuant to this Section 11 with respect to any tax withholding obligations that arise in connection with the RSUs and dividend equivalents. The Corporation makes no representation or undertaking regarding the treatment of any tax withholding in connection with the grant, issuance, vesting or settlement of the RSUs and dividend equivalents or the subsequent sale of any of the shares of Common Stock underlying the RSUs and dividend equivalents that vest. The Corporation does not commit and is under no obligation to structure the RSU program to reduce or eliminate your tax liability.  
		
	12.
	RIGHTS AS A STOCKHOLDER AND RESTRICTIONS

Your RSUs and dividend equivalents may not be otherwise transferred or assigned, pledged, hypothecated or otherwise disposed of in any way, whether by operation of law or otherwise, and may not be subject to execution, attachment or similar process.  Any attempt to transfer, assign, hypothecate or otherwise dispose of your RSUs and dividend equivalents other than as permitted above, shall be void and unenforceable against the Corporation.
You will have the rights of a stockholder only after shares of the Common Stock have been issued to you following vesting of your RSUs and dividend equivalents and satisfaction of all other conditions to the issuance of those shares as set forth in these Standard Terms.  RSUs and dividend equivalents shall not entitle you to any rights of a stockholder of Common Stock and there are no voting or dividend rights with respect to your RSUs and dividend equivalents.  RSUs and dividend equivalents shall remain terminable pursuant to these Standard Terms at all times until they vest and convert into shares.  As a condition to having the right to receive shares of Common Stock pursuant to your RSUs and dividend equivalents, you acknowledge that unvested RSUs and dividend equivalents shall have no value for purposes of any aspect of your employment relationship with the Corporation.  
Notwithstanding anything to the contrary in these Standard Terms or the applicable Notice of Grant, your RSUs and dividend equivalents are subject to reduction by the Corporation if you change your employment classification from a full-time employee to a part-time employee.
RSUs and dividend equivalents are not part of your employment contract (if any) with the Corporation, your salary, your normal or expected compensation, or other remuneration for any purposes, including for purposes of computing severance pay or other termination compensation or indemnity. 
		
	13.
	DISPUTES

Any question concerning the interpretation of these Standard Terms, your Notice of Grant, the RSUs or the 2006 Plan, any adjustments required to be made thereunder, and any controversy that may arise under the Standard Terms, your Notice of Grant, the RSUs or the 2006 Plan shall be determined by the Committee (including any person(s) to whom the Committee has delegated its authority) in its sole and absolute discretion.  Such decision by the Committee shall be final and binding unless determined pursuant to Section 15(f) to have been arbitrary and capricious. 

		
	14.
	AMENDMENTS

The 2006 Plan and RSUs and dividend equivalents may be amended or altered by the Committee or the Board of Directors of the Corporation to the extent provided in the 2006 Plan.
		
	15.
	THE 2006 PLAN AND OTHER TERMS; OTHER MATTERS

		
	(a)
	Certain capitalized terms used in these Standard Terms are defined in the 2006 Plan.  Any prior agreements, commitments or negotiations concerning the RSUs and dividend equivalents are superseded by these Standard Terms and your Notice of Grant.  You hereby acknowledge that a copy of the 2006 Plan has been made available to you.

The grant of RSUs and dividend equivalents to an employee in any one year, or at any time, does not obligate the Corporation or any Subsidiary to make a grant in any future year or in any given amount and should not create an expectation that the Corporation or any Subsidiary might make a grant in any future year or in any given amount.
		
	(b)
	To the extent that the grant of RSUs and dividend equivalents refers to the Common Stock of Intel Corporation, and as required by the laws of your country of residence or employment, only authorized but unissued shares thereof shall be utilized for delivery upon vesting in accord with the terms hereof.

		
	(c)
	Notwithstanding any other provision of these Standard Terms, if any changes in the financial or tax accounting rules applicable to the RSUs and dividend equivalents covered by these Standard Terms shall occur which, in the sole judgment of the Committee, may have an adverse effect on the reported earnings, assets or liabilities of the Corporation, the Committee may, in its sole discretion, modify these Standard Terms or cancel and cause a forfeiture with respect to any unvested RSUs and dividend equivalents at the time of such determination.

		
	(d)
	Nothing contained in these Standard Terms creates or implies an employment contract or term of employment upon which you may rely.

		
	(e)
	Notwithstanding any provision of these Standard Terms, the Notice of Grant or the 2006 Plan to the contrary, if, at the time of your termination of employment with the Corporation,  you are a “specified employee” as defined in Section 409A of the Internal Revenue Code ("Code"), and one or more of the payments or benefits received or to be received by you pursuant to the RSUs and dividend equivalents would constitute deferred compensation subject to Section 409A, no such payment or benefit will be provided under the RSUs until the earliest of (A) the date which is six (6) months after  your "separation from service” for any reason, other than death or “disability” (as such terms are used in Section 409A(a)(2) of the Code), (B) the date of your death or “disability” (as such term is used in Section 409A(a)(2)(C) of the Code) or (C) the effective date of a “change in the ownership or effective control” of the Corporation (as such term is used in Section 409A(a)(2)(A)(v) of the Code).  The provisions of this Section 15(e) shall only apply to the extent required to avoid your incurrence of any penalty tax or interest under Section 409A of the Code or any regulations or Treasury guidance promulgated thereunder.  In addition, if any provision of the RSUs would cause you to incur any penalty tax or interest under Section 409A of the Code or any regulations or Treasury guidance promulgated thereunder, the Corporation may reform such provision to maintain to the maximum extent practicable the original intent of the applicable provision without violating the provisions of Section 409A of the Code.

		
	(f)
	Because these Standard Terms relate to terms and conditions under which you may be issued shares of Common Stock of Intel Corporation, a Delaware corporation, an essential term of these Standard Terms is that it shall be governed by the laws of the State of Delaware, without regard to choice of law principles of Delaware or other jurisdictions.  Any action, suit, or proceeding relating to these Standard Terms or the RSUs and dividend equivalents granted hereunder shall be brought in the state or federal courts of competent jurisdiction in the State of California.

		
	(g)
	Copies of Intel Corporation's Annual Report to Stockholders for its latest fiscal year and Intel Corporation's latest quarterly report are available, without charge, at the Corporation's business office.

		
	(h)
	Notwithstanding any other provision of these Standard Terms, if any changes in law or the financial or tax accounting rules applicable to the RSUs and dividend equivalents covered by these Standard Terms shall occur, the Corporation may, in its sole discretion, (1) modify these Standard Terms to impose such restrictions or procedures with respect to the RSUs and dividend equivalents (whether vested or unvested), the shares issued or issuable pursuant to the RSUs and dividend equivalents and/or any proceeds or payments from or relating to such shares as it determines to be necessary or appropriate to comply with applicable law or to address, comply with or offset the economic effect to the Corporation of any accounting or administrative matters relating thereto, or (2) cancel and cause a forfeiture with respect to any unvested RSUs and dividend equivalents at the time of such determination.

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