Exhibit 4.2 FOURTH AMENDMENT TO WARRANT AGREEMENT This Fourth Amendment to Warrant Agreement (this "Amendment") is made and entered into as of May 21, 1997, by and between Intel Corporation, a Delaware corporation (the "Company"), and Harris Trust and Savings Bank, an Illinois banking corporation ("Harris"), as Warrant Agent, for purposes of amending that certain Warrant Agreement -- 1998 Step-Up Warrants to Purchase Common Stock, dated March 1, 1993, as amended by that certain First Amendment to Warrant Agreement, dated October 18, 1993, that certain Second Amendment to Warrant Agreement, dated January 17, 1994, and that certain Third Amendment to Warrant Agreement, dated May 1, 1995 (collectively, the "Warrant Agreement"). RECITALS - -------- (a) The Company issued 1998 Step-Up Warrants (the "Warrants") entitling holders to purchase 40,000,000 shares of the Company's Common Stock, $.001 par value (the "Common Stock") (as adjusted for previous stock splits); (b) The Company's Board of Directors has declared a two for one stock split to be effected as a special stock distribution of one share of Common Stock for each share of Common Stock outstanding (the "Split"); (c) The Split is payable on July 13, 1997 (the "Payment Date") to stockholders of record on June 10, 1997 (the "Record Date"); and (d) Pursuant to Sections 14(a), (h) and (k) of the Agreement, the Warrants will be adjusted, as of the Payment Date, by reducing the per share exercise price of each Warrant to one-half of the per share exercise price in effect immediately prior to the Payment Date, and by issuing to each Warrant holder of record on the Record Date for the Split, one additional Warrant at the adjusted per share exercise price for each Warrant held as of such Record Date. AGREEMENT - --------- For good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Company and Harris agree as follows: 1. Effective as of July 13, 1997, Section 2 of the Warrant Agreement is hereby amended to read in its entirety as follows: "SECTION 2. Amount Issued. Subject to the provisions of this Agreement, Warrants to purchase no more than eighty million (80,000,000) Shares may be issued and delivered by the Company hereunder." 2. Effective as of July 13, 1997, the second paragraph of Section 7 of the Warrant Agreement is hereby amended to read in its entirety as follows: "Subject to the provisions of this Agreement, including Section 14, each Warrant shall entitle the holder thereof to purchase from the Company (and the Company shall issue and sell to such holder of a Warrant) one fully paid and nonassessable Share at the price set forth in the following table (such price, as it may be adjusted from time to time as provided in Section 14, being the "Exercise Price"): Exercise Date ------------- After On or Before Exercise Price ----- ------------ -------------- Per Share May 13, 1993 March 14, 1994 $17.875** March 14, 1994 March 14, 1995 $18.625** March 14, 1995 March 14, 1996 $19.375** March 14, 1996 March 14, 1997 $20.125** March 14, 1997 March 14, 1998 $20.875 **(expired prior to, but adjusted to reflect, stock distribution on July 13, 1997)" 3. Effective as of July 13, 1997, Exhibit A is replaced with the attached Exhibit A-4. 4. Except as expressly modified herein, the Warrant Agreement remains in full force and effect. The parties hereto have caused this Amendment to be executed and delivered as of the date first set forth above. Attest: INTEL CORPORATION /s/ By: /s/ - ---------------------- --------------------------------------- Patrice C. Scatena Name/Title: Arvind Sodhani Vice President and Treasurer Attest: HARRIS TRUST AND SAVINGS BANK /s/ By: /s/ - --------------------- --------------------------------------- Bruce T. Thomson Name/Title: Richard C. Carlson Vice President Exhibit A-4 (REVISED 5/97) [Form of Face of Warrant Certificate] Void After March 14, 1998 No. C- Warrant to Purchase ________ Shares of Common Stock INTEL CORPORATION 1998 Step-Up Warrant to Purchase Common Stock This Warrant Certificate certifies that ______________________________ or registered assigns, is the registered holder of a 1998 Step-Up Warrant (the "Warrant") of Intel Corporation, a Delaware corporation (the "Company"), to purchase the number of shares (the "Shares") of Common Stock, $0.001 par value (the "Common Stock"), of the Company set forth above. This Warrant expires at 5:00 p.m. New York City time (the "Close of Business") on March 14, 1998 (the "Expiration Date"), unless such date is extended at the option of the Company, and entitles the holder to purchase from the Company the number of fully paid and nonassessable Shares set forth above at the exercise price (the "Exercise Price"), payable in lawful money of the United States of America, determined in accordance with the following table: Exercise Date ------------- After the Close On or Before the Exercise Price of Business Close of Business Per Share --------------- ----------------- -------------- May 13, 1993 March 14, 1994 $17.875** March 14, 1994 March 14, 1995 $18.625** March 14, 1995 March 14, 1996 $19.375** March 14, 1996 March 14, 1997 $20.125** March 14, 1997 March 14, 1998 $20.875 **(expired prior to, but adjusted to reflect, stock distribution on July 13, 1997) Subject to the terms and conditions set forth herein and in the Warrant Agreement referred to on the reverse hereof, this Warrant may be exercised upon surrender of this Warrant Certificate and payment of the aggregate Exercise Price (rounded down, if necessary, to the nearest whole cent) at the office or agency of the Warrant Agent in New York, New York or in Chicago, Illinois (each such office, a "Warrant Agent Office"). The Exercise Price and the number of Shares purchasable upon exercise of this Warrant are subject to adjustment upon the occurrence of certain events as set forth in the Warrant Agreement. No Warrant may be exercised prior to May 14, 1993 or after the Close of Business on the Expiration Date, unless the Company exercises its option to extend such date. After the Close of Business on the Expiration Date, the Warrants will become wholly void and of no value. Reference is hereby made to the further provisions of this Warrant Certificate set forth on the reverse hereof. Such further provisions shall for all purposes have the same effect as though fully set forth at this place. This Warrant Certificate shall not be valid unless countersigned by the Warrant Agent. IN WITNESS WHEREOF, the Company has caused this Certificate to be executed by its duly authorized officers, and the corporate seal hereunto affixed. Dated: ________________ INTEL CORPORATION By _______________________________ [Corporate Seal of Intel Corporation] Attest: By _________________________ Countersigned: HARRIS TRUST AND SAVINGS BANK, as Warrant Agent By _________________________ [Form of Reverse of Warrant Certificate] INTEL CORPORATION The warrant evidenced by this warrant certificate is a part of a duly authorized issue of 1998 Step-Up Warrants to purchase a maximum of eighty million (80,000,000) Shares of Common Stock (subject to adjustment) issued pursuant to a Warrant Agreement, dated as of March 1, 1993, as the same has and may be amended from time to time (the "Warrant Agreement"), duly executed and delivered by the Company to Harris Trust and Savings Bank, as Warrant Agent (the "Warrant Agent"). The Warrant Agreement hereby is incorporated by reference in and made a part of this instrument and is hereby referred to for a description of the rights, limitation of rights, obligations, duties and immunities thereunder of the Warrant Agent, the Company and the holders (the words "holders" or "holder" meaning the registered holders or registered holder) of the Warrants. A copy of the Warrant Agreement may be inspected at the Warrant Agent Office and is available upon written request addressed to the Company. All terms used herein that are defined in the Warrant Agreement have the meanings assigned to them therein. Warrants may be exercised to purchase Shares from the Company before the Close of Business on the Expiration Date, at the Exercise Price set forth on the face hereof, subject to adjustment as described in the Warrant Agreement. The holder of the Warrant evidenced by this Warrant Certificate may exercise such Warrant by surrendering the Warrant Certificate, with the form of election to purchase set forth hereon properly completed and executed, together with payment of the aggregate Exercise Price (rounded down, if necessary, to the nearest whole cent), in lawful money of the United States of America, and any applicable transfer taxes, at the Warrant Agent Office. In the event that upon any exercise of the Warrant evidenced hereby the number of Shares actually purchased shall be less than the total number of Shares purchasable upon exercise of the Warrant evidenced hereby, there shall be issued to the holder hereof, or such holder's assignee, a new Warrant Certificate evidencing a Warrant to purchase the Shares not so purchased. No adjustment shall be made for any cash dividends on any Shares issuable upon exercise of this Warrant. After the Close of Business on the Expiration Date, unexercised Warrants shall become wholly void and of no value. The Company shall not be required to issue fractions of Shares or any certificates that evidence fractional Shares. In lieu of such fractional Shares, there shall be paid to holders of the Warrant Certificates with regard to which such fractional Shares would otherwise be issuable an amount in cash equal to the same fraction of the current market value (as determined pursuant to the Warrant Agreement) of a full Share. Warrant Certificates, when surrendered at the Warrant Agent Office by the registered holder thereof in person or by a legal representative or attorney duly authorized in writing, may be exchanged, in the manner and subject to the limitations provided in the Warrant Agreement, but without payment of any service charge, for another Warrant Certificate or Warrant Certificates of like tenor evidencing a Warrant to purchase in the aggregate a like number of Shares. Upon due presentment for registration of transfer of this Warrant Certificate at the Warrant Agent Office, a new Warrant Certificate or Warrant Certificates of like tenor and evidencing a Warrant or Warrants to purchase in the aggregate a like number of Shares shall be issued to the transferee in exchange for this Warrant Certificate, subject to the limitations provided in the Warrant Agreement, without charge, except for any tax or other governmental charge imposed in connection therewith. The Company and Warrant Agent may deem and treat the registered holder hereof as the absolute owner of this Warrant Certificate (notwithstanding any notation of ownership or other writing hereon made by anyone) for the purpose of any exercise hereof and for all other purposes, and neither the Company nor the Warrant Agent shall be affected by any notice to the contrary. Election to Exercise (To be executed upon exercise of the Warrant) The undersigned hereby irrevocably elects to exercise the right, represented by this Warrant Certificate, to purchase _______ Shares and herewith tenders in payment for such Shares $______ in lawful money of the United States of America, in accordance with the terms hereof. The undersigned requests that a certificate representing such Shares be registered and delivered as follows: --------------------------------------------- Name --------------------------------------------- Address --------------------------------------------- Delivery Address (if different) If such number of Shares is less than the aggregate number of Shares purchasable hereunder, the undersigned requests that a new Warrant Certificate representing the balance of such Shares be registered and delivered as follows: --------------------------------------------- Name --------------------------------------------- Address --------------------------------------------- Delivery Address (if different) _________________________________ ____________________________________ Social Security or Other Taxpayer Signature Identification Number of Holder Note: The above signature must correspond with the name as written upon the face of this Warrant Certificate in every particular, without alteration or enlargement or any change whatsoever. If the certificate representing the Shares or any Warrant Certificate representing Warrants not exercised is to be registered in a name other than that in which this Warrant Certificate is registered, the signature of the holder hereof must be guaranteed. Signature Guaranteed: - ------------------------------ Assignment (To be executed by the registered holder if such holder desires to transfer the Warrant Certificate) For Value Received, the undersigned registered holder hereby sells, assigns and transfers unto ---------------------------------- Name of Assignee ---------------------------------- Address of Assignee this Warrant Certificate, together with all right, title and interest therein, and does irrevocably constitute and appoint ____________________ attorney, to transfer the within Warrant Certificate on the books of the Warrant Agent, with full power of substitution. ______________________________ __________________________________ Dated Signature Note: The above signature must correspond with the name as written upon the face of this Warrant Certificate in every particular, without alteration or enlargement or any change whatsoever. ______________________________ Social Security or Other Taxpayer Identification Number of Assignee Signature Guaranteed: ______________________________