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

    Intel has incorporated its DFE program as a key element in its environmental management system for the Ocotillo Site.4 The DFE program is designed to conserve natural resources and reduce the environmental burden of waste generation and emissions to air, water and land by developing environmentally compatible products and processes. The DFE program is implemented at the corporate level and drives environmental improvements before the new manufacturing processes reach Intel's factories, such as FAB 12. Specifically, Intel's Strategic Chemical Council ("SCC"), a cross-corporation executive management council, was formed in 1993 to ensure that the Company's facilities, products and processes are designed with improvements in chemical, water and energy use for each new technology generation. The SCC helps drive Intel's DFE program, which prioritizes environmental management according to a hierarchy that begins with reducing resource consumption and is followed by reusing, recycling and disposing in an environmentally proper manner. The environmental improvements are developed for each new technology generation and transferred to manufacturing facilities where they are consistently implemented. In summary, greater leverage and environmental performance are achieved through Intel's DFE methodology. As a result, toxic use reduction and pollution prevention at the Ocotillo Site may be accomplished through Intel's DFE program. Intel's DFE program is part of the Company's efforts to be a leader in reducing, reusing, and recycling chemical substances, and ensuring that any wastes remaining are properly disposed of in a safe and environmentally sound manner.
    4 The DFE Program is only part of Intel's overall commitment to human health and the environment, as reflected in the Company's Environmental Health & Safety Policy (included as Attachment 4).

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