Intel 1996 Annual Report Download - page 33

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6. GRANT, TERMS AND CONDITIONS OF OPTIONS
Options may be granted at any time and from time to time prior to the termination of the Plan, to certain key employees of Intel selected by the
Committee. However, no Participant shall be granted options in any year, to purchase shares of common stock in excess of one percent (1%) of
the number of shares of the Corporation's Common Stock outstanding on January 1, 1994. In addition, no Participant or optionholder shall have
any rights as a stockholder with respect to any shares of stock subject to option hereunder until said shares have been issued. Each option may
be evidenced by a written stock option agreement and/or such other written arrangements as may be approved from time to time by the
Committee. Options granted pursuant to the Plan need not be identical but each option much contain and be subject to the following terms and
conditions:
(a) Price: The purchase price under each option shall be established by the Committee. In no event will the option price be less than the fair
market value of the stock on the date of grant. The option price must be paid in full at the time of exercise. The price may be paid in cash or, as
acceptable to the Committee, by loan (as described in Section 7), by arrangement with a broker 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 option shares to the Corporation, by
the surrender of shares of Common Stock of the Corporation owned by the Participant exercising the option and having a fair market value on
the date of exercise equal to the option price or in any combination of the foregoing.
(b) Duration and Exercise or Termination of Option: Each option shall be exercisable in such manner and at such times as the Committee shall
determine. However, each option granted must expire within a period of not more than ten (10) years from the grant date.
(c) Suspension or Termination of Option: If at any time (including after a notice of exercise has been delivered) the Chief Executive Officer,
President, Chief Operating Officer, Vice President for Human Resources, General Counsel or any of their designees (any such person, an
"Authorized Officer") reasonably believes that a Participant or optionholder has committed an act of misconduct as described in this Section,
the Authorized Officer may suspend the Participant's or optionholder's rights to exercise any option pending a determination of whether an act
of misconduct has been committed.
If the Board of Directors or an Authorized Officer determines a Participant or optionholder has committed an act of embezzlement, fraud,
dishonesty, nonpayment of any obligation owed to Intel, breach of fiduciary duty or deliberate disregard of Intel rules resulting in loss, damage
or injury to Intel, or if a Participant or optionholder makes an unauthorized disclosure of any Intel trade secret or confidential information,
engages in any conduct constituting unfair competition, induces