Document:

exv10w2

Exhibit 10.2

INTEL CORPORATION

RESTRICTED STOCK UNIT AGREEMENT

UNDER THE 2006 EQUITY INCENTIVE PLAN

(for RSUs granted after March 27, 2009 under the standard OSU program)

	1.	 	TERMS OF RESTRICTED STOCK UNIT
	 
	 	 	This Restricted Stock Unit Agreement (this “Agreement”), the Notice of Grant delivered
herewith (the “Notice of Grant”) and the Intel Corporation 2006 Equity Incentive Plan (the
“2006 Plan”), as such may be amended from time to time, constitute the entire understanding
between you and Intel Corporation (the “Corporation”) regarding the Restricted Stock Units
(“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
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 this Agreement. 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 this Agreement. 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
	 
	 	 	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 Comparison Group (“CG TSR”) at the end of the Performance Period,
as those terms are defined below. The minimum conversion rate shall be 33% of the Target
Number of Shares as specified on the Notice of Grant and the maximum conversion rate shall
be 200% of the Target Number of Shares as specified on the Notice of Grant. If the Intel
TSR and CG TSR are within 1 percentage point, the conversion rate shall be 100%. If the
Intel TSR is less than the CG TSR, the conversion rate shall be 100% minus two times the
difference in percentage points. If the Intel TSR is greater than the
CG

Std No
Sig Int’l OSU Agmt (06 EIP)

1.

 

	 	 	TSR, the conversion rate shall be 100% plus three times the difference in percentage
points. 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 CG 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 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 105%, the difference is 5 percentage
points and the conversion rate is 115%, so that your RSUs convert into the right to receive
115% of the Target Number of Shares.

	 	(a)	 	Intel TSR is a percentage (to the third decimal point) derived by:

	 	(1)	 	A numerator that is difference between the closing sale price of
Common Stock on the grant date subtracted from the average closing sale price of
Common Stock during the 6 months prior to the end of the Performance Period,
plus any dividends paid or payable with respect to a record date that occurs
during the Performance Period; and
	 
	 	(2)	 	A denominator that is the closing sale price of Common Stock on
the grant date.

	 	(b)	 	CG TSR is the average of the Tech 15 TSR and the S&P 100 TSR where:

	 	(1)	 	TSR of each stock is a. the difference between the closing sale
price on the grant date subtracted from the weighted average closing sale price
during the 6 months prior to the end of the Performance Period, plus any
dividends paid or payable with respect to a record date that occurs during the
Performance Period, divided (to the third decimal point) by b. the closing sale
price on the grant date;
	 
	 	(2)	 	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;
	 
	 	(3)	 	S&P 100 TSR is the median TSR of the companies included in the
Standard & Poor’s 100 as of the grant date, minus the Corporation (in the event
the Corporation is included in the Standard & Poor’s 100), regardless of any
change in the makeup of Standard & Poor’s 100 during the Performance Period; and

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

Std No Sig Int’l OSU Agmt (06 EIP)

2.

 

	 	(1)	 	Any dividend paid or payable in cash shall be valued at its cash
amount (without any deemed reinvestment). 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 record 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 or S&P 100 TRS 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.

	 	(d)	 	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 record date that occurs during the Performance Period (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 this Agreement
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 

Std No Sig Int’l OSU Agmt (06 EIP)

3.

 

	 	 	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 CG 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)(v) 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)(v) 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 this Agreement, 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 

Std No Sig Int’l OSU Agmt (06 EIP)

4.

 

	 	 	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) an 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 this Agreement, 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 this Agreement, 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:

Std No
Sig Int’l OSU Agmt (06 EIP)

5.

 

	 	(a)	 	You 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
when 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 in
accordance with the tax laws of the country where you are resident or employed. RSUs and
dividend equivalents are taxable in accordance with the existing or future tax laws of the
country where you are a resident or employed. If you are an U.S. citizen or expatriate, you
may also be subject to U.S. tax laws.
	 
	 	 	To the extent required by applicable federal, state or other law, you shall make
arrangements satisfactory to the Corporation (or the Subsidiary that employs you, if your
Subsidiary is involved in the administration of the 2006 Plan) for the payment and
satisfaction of any income tax, social security tax, payroll tax, social taxes, applicable
national or local taxes, or payment on account of other tax related to withholding
obligations that arise by reason of granting of a RSU, vesting of a RSU or any sale of
shares of the Common Stock (whichever is applicable).
	 
	 	 	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

Std No Sig Int’l OSU Agmt (06 EIP)

6.

 

	 	 	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
	 
	 	 	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 this Agreement. 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 this
Agreement 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.
	 
	13.	 	DISPUTES
	 
	 	 	Any question concerning the interpretation of this Agreement, your Notice of Grant, the RSUs
or the 2006 Plan, any adjustments required to be made thereunder, and any controversy that
may arise under this Agreement, 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 16(e) 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.	 	DATA PRIVACY

Std No Sig Int’l OSU Agmt (06 EIP)

7.

 

	 	 	You explicitly and unambiguously consent to the collection, use and transfer, in electronic
or other form, of your personal data as described in this document by the Corporation for
the exclusive purpose of implementing, administering and managing your participation in the
2006 Plan.
	 
	 	 	You hereby understand that the Corporation holds certain personal information about you,
including, but not limited to, your name, home address and telephone number, date of birth,
social insurance number or other identification number, salary, nationality, job title, any
shares of stock or directorships held in the Corporation, details of all RSUs or any other
entitlement to shares of stock awarded, canceled, exercised, vested, unvested or outstanding
in your favor, for the purpose of implementing, administering and managing the 2006 Plan
(“Data”). You hereby understand that Data may be transferred to any third parties assisting
in the implementation, administration and management of the 2006 Plan, that these recipients
may be located in your country or elsewhere, and that the recipient’s country may have
different data privacy laws and protections than your country. You hereby understand that
you may request a list with the names and addresses of any potential recipients of the Data
by contacting your local human resources representative. You authorize the recipients to
receive, possess, use, retain and transfer the Data, in electronic or other form, for the
purposes of implementing, administering and managing your participation in the 2006 Plan,
including any requisite transfer of such Data as may be required to a broker or other third
party with whom you may elect to deposit any shares of Common Stock acquired under your RSUs
and dividend equivalents. You hereby understand that Data will be held only as long as is
necessary to implement, administer and manage your participation in the 2006 Plan. You
hereby understand that you may, at any time, view Data, request additional information about
the storage and processing of Data, require any necessary amendments to Data or refuse or
withdraw the consents herein, in any case without cost, by contacting in writing your local
human resources representative. You hereby understand, however, that refusing or
withdrawing your consent may affect your ability to participate in the 2006 Plan. For more
information on the consequences of your refusal to consent or withdrawal of consent, you
hereby understand that you may contact the human resources representative responsible for
your country at the local or regional level.
	 
	16.	 	THE 2006 PLAN AND OTHER TERMS; OTHER MATTERS

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

Std No Sig Int’l OSU Agmt (06 EIP)

8.

 

	 	 	 	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 this Agreement, if any changes in the
financial or tax accounting rules applicable to the RSUs and dividend equivalents
covered by this Agreement 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 this Agreement 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 this Agreement creates or implies an employment contract
or term of employment upon which you may rely.
	 
	 	(e)	 	Because this Agreement relates to terms and conditions under which you may be
issued shares of Common Stock of Intel Corporation, a Delaware corporation, an
essential term of this Agreement 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 this Agreement 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.
	 
	 	(f)	 	Notwithstanding anything to the contrary in this Agreement 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.
	 
	 	(g)	 	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.
	 
	 	(h)	 	In consideration of the grant of RSUs and dividend equivalents, no claim or
entitlement to compensation or damages shall arise from termination of your RSUs and
dividend equivalents or diminution in value of the RSUs and dividend equivalents or
Common Stock acquired through vested RSUs and

Std No Sig Int’l OSU Agmt (06 EIP)

9.

 

	 	 	 	dividend equivalents resulting from termination of your active employment by the
Corporation (for any reason whatsoever and whether or not in breach of local labor
laws) and you hereby release the Corporation from any such claim that may arise; if,
notwithstanding the foregoing, any such claim is found by a court of competent
jurisdiction to have arisen, then you shall be deemed irrevocably to have waived your
entitlement to pursue such claim.
	 
	 	(i)	 	Notwithstanding any terms or conditions of the 2006 Plan to the contrary, in
the event of involuntary termination of your employment (whether or not in breach of
local labor laws), your right to receive the RSUs and dividend equivalents and vest in
RSUs and dividend equivalents under the 2006 Plan, if any, will terminate effective as
of the date that you are no longer actively employed and will not be extended by any
notice period mandated under local law (e.g., active employment would not include a
period of “garden leave” or similar period pursuant to local law); furthermore, in the
event of involuntary termination of employment (whether or not in breach of local labor
laws), your right to sell shares of Common Stock that converted from vested RSUs and
dividend equivalents after termination of employment, if any, will be measured by the
date of termination of your active employment and will not be extended by any notice
period mandated under local law.
	 
	 	(j)	 	Notwithstanding any provision of this Agreement, 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 and dividend equivalents 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 16(j) 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.
	 
	 	(k)	 	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.

Std No Sig Int’l OSU Agmt (06 EIP)

10.

 

	 	(l)	 	Notwithstanding any other provision of this Agreement, if any changes in law or
the financial or tax accounting rules applicable to the RSUs and dividend equivalents
covered by this Agreement shall occur, the Corporation may, in its sole discretion, (1)
modify this Agreement 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.

Std No Sig Int’l OSU Agmt (06 EIP)

11.exv10w3

Exhibit 10.3

	 	 	 	 	 	 	 
	Participant	 	 	 	 	 	 
	Ticker

	 	INTC
	 	Name
	 	Participant ID
	 
	 	 	 	 	 	 

	 	 	 	 	 	 	 	 	 	 	 	 	 
	Grant Detail	 	 	 	 	 	 	 	 	 	 	 	 
	Plan 

	 	Grant ID
	 	Grant Date
	 	Grant

Type
	 	Grant

Price
	 	Expiration Date
	 	Grant

Status

INTEL CORPORATION

2006 EQUITY INCENTIVE PLAN

FORM
OF TERMS AND CONDITIONS RELATING TO NON-QUALIFIED 

STOCK OPTIONS GRANTED TO PAUL S. OTELLINI UNDER THE

INTEL CORPORATION 2006 EQUITY INCENTIVE PLAN

1. TERMS OF OPTION

The following standard terms and conditions (“Standard Terms”) apply to Non-Qualified Stock Options granted to Paul S. Otellini under the Intel
Corporation 2006 Equity Incentive Plan (the “2006 Plan”) (other than grants made under the SOP Plus or ELTSOP programs).

2. NONQUALIFIED STOCK OPTION

The option is not intended to be an incentive stock option under Section 422 of the Internal Revenue Code of 1986, as amended (the “Code”) and will be
interpreted accordingly.

3. OPTION PRICE

The exercise price of the option (the “option price”) is 100% of the market value of the common stock of Intel Corporation (“Intel” or the “Corporation”),
$.001 par value (the “Common Stock”), on the date of grant, as specified in the Notice of Grant. “Market value” means the average of the highest and
lowest sales prices of the Common Stock as reported by NASDAQ.

4. TERM OF OPTION AND EXERCISE OF OPTION

To the extent the option has become exercisable (vested) during the periods indicated in the Notice of Grant and has not been previously exercised, and
subject to termination or acceleration as provided in these Standard Terms and the requirements of these Standard Terms, the Notice of Grant and the 2006
Plan, you may exercise the option to purchase up to the number of shares of the Common Stock set forth in the Notice of Grant.

 

 

Notwithstanding anything
to the contrary in Sections 6 through 9 hereof, no part of the option may be exercised after seven (7) years from the date of grant.

The process for exercising the option (or any part thereof) is governed by these Standard Terms, the Notice of Grant, the 2006 Plan and your agreements
with Intel’s stock plan administrator. Exercises of stock options will be processed as soon as practicable. The option price may be paid (a) in cash, (b)
by arrangement with Intel’s stock plan administrator which is acceptable to Intel where payment of the option price is made pursuant to an irrevocable
direction to the broker to deliver all or part of the proceeds from the sale of the shares of the Common Stock issuable under the option to Intel, (c) by
delivery of any other lawful consideration approved in advance by the Committee of the Board of Directors of Intel established pursuant to the 2006 Plan
(the “Committee”) or its delegate, or (d) in any combination of the foregoing. Fractional shares may not be exercised. Shares of the Common Stock will
be issued as soon as practicable. You will have the rights of a stockholder only after the shares of the Common Stock have been issued. For
administrative or other reasons, Intel may from time to time suspend the ability of employees to exercise options for limited periods of time.

Notwithstanding the above, Intel shall not be obligated to deliver any shares of the Common Stock during any period when Intel determines that the
exercisability of the option or the delivery of shares hereunder would violate any federal, state or other applicable laws.

Notwithstanding anything to the contrary in these Standard Terms or the applicable Notice of Grant, Intel may reduce your unvested options if you change
classification from a full-time employee to a part-time employee.

IF AN EXPIRATION DATE DESCRIBED HEREIN FALLS ON A WEEKDAY, YOU MUST EXERCISE YOUR OPTIONS BEFORE 3:45 P.M. NEW YORK TIME ON THE EXPIRATION DATE.

IF AN EXPIRATION DATE DESCRIBED HEREIN FALLS ON A WEEKEND OR ANY OTHER DAY ON WHICH THE NASDAQ STOCK MARKET (“NASDAQ”) IS NOT OPEN, YOU MUST EXERCISE
YOUR OPTIONS BEFORE 3:45 P.M. NEW YORK TIME ON THE LAST NASDAQ BUSINESS DAY PRIOR TO THE EXPIRATION DATE.

5. SUSPENSION OR TERMINATION OF OPTION 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)(v) 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)(v) 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 option and your right to exercise your option, to the extent it is vested, 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, your option shall be cancelled and neither you
nor any beneficiary shall be entitled to any claim with respect to your option 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.

6. 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 death, Disablement (defined below), Retirement (defined below) or discharge for misconduct, you may exercise any portion of the
option that had vested on or prior to the date of termination at any time prior to ninety (90) days after the date of such termination. The option shall
terminate on the 90th day to the extent that it is unexercised. All unvested stock options shall be cancelled on the date of employment
termination, regardless of whether such employment termination is voluntary or involuntary.

For purposes of this Section 6, your employment is not deemed terminated if, prior to sixty (60) days after the date of termination from Intel or a
Subsidiary, you are rehired by Intel or a Subsidiary on a basis that would make you eligible for future Intel stock option grants, nor would your
transfer from Intel to any Subsidiary or from any one Subsidiary to another, or from a Subsidiary to Intel be deemed a termination of employment.
Further, your employment with any partnership, joint venture or corporation not meeting the requirements of a Subsidiary in which Intel 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 designated as an employee of a Subsidiary for purposes of this provision.

7. DEATH

Except as expressly provided otherwise in these Standard Terms, if you die while employed by the Corporation, the executor of your will, administrator of
your estate or any successor trustee of a grantor trust may exercise the option, to the extent not previously exercised and whether or not vested on the
date of death, at any time prior to the end of the term of option (see Section 4).

Except as expressly provided otherwise in these Standard Terms, if you die prior to ninety (90) days after terminating your employment with the
Corporation, the executor of your will or administrator of your estate may exercise the option, to the extent not previously exercised and to the extent
the option had vested on or prior to the date of

 

 

your employment termination, at any time prior to the end of the term of option (see Section 4).

The option shall terminate on the applicable expiration date described in this Section 7, to the extent that it is unexercised.

8. DISABILITY

Except as expressly provided otherwise in these Standard Terms, following your termination of employment due to Disablement, you may exercise the option,
to the extent not previously exercised and whether or not the option had vested on or prior to the date of employment termination, at any time prior to
the end of the term of option (see Section 4); provided, however, that while the claim of Disablement is pending, options that were unvested at
termination of employment may not be exercised and options that were vested at termination of employment may be exercised only during the period set
forth in Section 6 hereof. For purposes of these Standard Terms, “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.

9. RETIREMENT

For purposes of by these Standard Terms, “Retirement” shall mean either Standard Retirement (as defined below) or the Rule of 75 (as defined below).
Following your Retirement, the vesting of the option, to the extent that it had not vested on or prior to the date of your Retirement, shall be
accelerated as follows:

(a) If you retire at or after age 60 (“Standard Retirement”), you will receive one year of additional vesting from your date of Retirement
for every five (5) years that you have been employed by the Corporation (measured in complete, whole years). No vesting acceleration shall
occur for any periods of employment of less than five (5) years; or

(b) If, when you terminate employment with Intel, your age plus years of service (in each case measured in complete, whole years) equals or
exceeds 75 (“Rule of 75”), you will receive accelerated vesting of any portion of the option that would have vested prior to 365 days from
the date of your Retirement.

You will receive vesting acceleration pursuant to either Standard Retirement or the Rule of 75, but not both. Following your Retirement from the
Corporation, you may exercise the option at any time prior to the end of the term of option (see Section 4), to the extent

 

 

that it had vested as of the
date of your Retirement or to the extent that vesting of the option is accelerated pursuant to this Section 9.

10. INCOME TAXES WITHHOLDING

Nonqualified stock options are taxable upon exercise. To the extent required by applicable federal, state or other law, you shall make arrangements
satisfactory to Intel for the satisfaction of any withholding tax obligations that arise by reason of an option exercise and, if applicable, any sale of
shares of the Common Stock. Intel shall not be required to issue shares of the Common Stock or to recognize any purported transfer of shares of the
Common Stock until such obligations are satisfied. The Committee may permit these obligations to be satisfied by having Intel withhold a portion of the
shares of the Common Stock that otherwise would be issued to you upon exercise of the option, or to the extent permitted by the Committee, by tendering
shares of the Common Stock previously acquired.

11. TRANSFERABILITY OF OPTION

Unless otherwise provided by the Committee, each option shall be transferable only

(a) pursuant to your will or upon your death to your beneficiaries, or

(b) by gift to your Immediate Family (defined below), partnerships whose only partners are you or members of your Immediate Family, limited
liability companies whose only shareholders are you or members of your Immediate Family, or trusts established solely for the benefit of you
or members of your Immediate Family, or

(c) by gift to a foundation in which you and/or members of your Immediate Family control the management of the foundation’s assets.

For purposes of these Standard Terms, “Immediate Family” is defined as your spouse or domestic partner, children, grandchildren, parents, or siblings.

With respect to transfers by gift under subsection (b), options are transferable whether vested or not at the time of transfer. With respect to transfers
by gift under subsection (c), options are transferable only to the extent the options are vested at the time of transfer. Any purported assignment,
transfer or encumbrance that does not qualify under subsections (a), (b) and (c) above shall be void and unenforceable against the Corporation.

Any option transferred by you pursuant to this section shall not be transferable by the recipient except by will or the laws of descent and distribution.

The transferability of options is subject to any applicable laws of your country of

 

 

residence or employment.

12. DISPUTES

The Committee or its delegate shall finally and conclusively determine any disagreement concerning your option.

13. AMENDMENTS

The 2006 Plan and the option may be amended or altered by the Committee or the Board of Directors of Intel to the extent provided in the 2006 Plan.

14. THE 2006 PLAN AND OTHER AGREEMENTS; OTHER MATTERS

(a) The provisions of these Standard Terms and the 2006 Plan are incorporated into the Notice of Grant by reference. You hereby acknowledge
that a copy of the 2006 Plan has been made available to you. Certain capitalized terms used in these Standard Terms are defined in the 2006
Plan.

These Standard Terms, the Notice of Grant and the 2006 Plan constitute the entire understanding between you and the Corporation regarding the
option. Any prior agreements, commitments or negotiations concerning the option are superseded.

The grant of an option to an employee in any one year, or at any time, does not obligate Intel or any Subsidiary to make a grant in any
future year or in any given amount and should not create an expectation that Intel or any Subsidiary might make a grant in any future year or
in any given amount.

(b) Options 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.

(c) Notwithstanding any other provision of these Standard Terms, if any changes in the financial or tax accounting rules applicable to the
options 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 options 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) To the extent that the option 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 exercise by the holder in accord with the
terms hereof.

(f) 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.

(g) Because these Standard Terms relate to terms and conditions under which you may purchase Common Stock of Intel, 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 option granted
hereunder shall be brought in the state or federal courts of competent jurisdiction in the State of California.

(h) Notwithstanding any other provision of these Standard Terms, if any changes in the law or the financial or tax accounting rules
applicable to the options 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 options (whether vested or unvested), the shares issued or issuable
pursuant to this option 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 options at the time of such determination.

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