Intel

Final Project Agreement -- Terms and Conditions of the FPA (cont.)

MANAGEMENT OF WASTE

Currently, Intel is not legally required to recycle solid waste, hazardous waste or non-hazardous chemical waste generated at the Ocotillo Site. As part of this Agreement, however, Intel commits to increase the percentage by volume of solid waste, hazardous waste and non-hazardous chemical waste recycled, and to report on its waste recycling activities in its consolidated report.

Solid Waste

Intel commits to the following goals for the management of solid waste (that is, paper, plastic, aluminum, wood, pallets, metal, glass and cardboard):

Intel commits to recycle solid waste generated at the Ocotillo Site according to the following timetable:

In 1997, [40]% of the solid waste generated at the Ocotillo Site will be recycled.

In 1999, [55]% of the solid waste generated at the Ocotillo Site will be recycled.

In 2001, [60]% of the solid waste generated at the Ocotillo Site will be recycled.

Progress toward attaining the solid waste recycling goals will be measured by tracking the ratio of the mass of material recycled to the total mass of solid waste generated. These measurements will be included in the consolidated reports issued quarterly (see Section II(G)).

Hazardous Waste

Intel commits to the following goals for hazardous waste management:

Intel commits to recycle hazardous waste generated at the Ocotillo Site according to the following schedule:

In 1997, [60]% of the hazardous waste generated at the Ocotillo Site will be recycled.

In 1999, [50]% of the hazardous waste generated at the Ocotillo Site will be recycled.

In 2001, [40]% of the hazardous waste generated at the Ocotillo Site will be recycled.

Intel's goal is to transfer as much of the hazardous waste into the non-hazardous chemical waste as possible. As Intel reduces the amount of hazardous waste generated at the Ocotillo Site through pollution prevention measures, it will experience a corresponding decrease in the amount of hazardous waste available for recycle and energy recovery. For this reason, the percent of hazardous waste recycled will decrease with time. Intel's hazardous waste goals will complement the Company's existing pollution prevention efforts by decreasing the impact Intel's new facility may have on hazardous waste treatment or disposal facilities and the environment generally. Progress toward attaining the hazardous waste recycling goals will be measured by tracking the ratio of the mass of material recycled, which includes energy recovery, to the total mass of hazardous waste generated. These measurements will be included in the consolidated reports issued quarterly (see Section II(G)).

Non-Hazardous Chemical Waste

Intel commits to the following goals for non-hazardous chemical waste management:

Intel commits to recycle non-hazardous chemical waste generated at the Ocotillo Site according to the following schedule:

n 1997, [25]% of the non- hazardous chemical waste generated at the Ocotillo Site will be recycled.

In 1999, [50]% of the non-hazardous chemical waste generated at the Ocotillo Site will be recycled.

In 2001, [70]% of the non-hazardous chemical waste generated at the Ocotillo Site will be recycled.

Intel's non-hazardous chemical waste recycling goals at the Ocotillo Site will complement the Company's existing pollution prevention efforts by decreasing the impact Intel's new facility may have on treatment or disposal facilities and the environment generally. Progress toward attaining the non-hazardous chemical waste recycling goals will be measured by tracking the ratio of the mass of material recycled to the total mass of non-hazardous chemical waste generated. These measurements will be included in the consolidated reports issued quarterly (see Section II(G)).

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