Document:

EXHIBIT 10.65

[***] DENOTES CONFIDENTIAL MATERIALS OMITTED AND FILED

SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION

PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT.

SETTLEMENT
AND RELEASE AGREEMENT

This Settlement and Release Agreement (“Agreement”) is made as of
September 15, 2006 (“Effective Date”)
by and among Toshiba Corporation, a corporation organized under the laws of
Japan, with its principal office at 1 1 Shibaura 1 chome, Minato-ku, Tokyo
105-8001, Japan (“Toshiba”),
Micron Technology, Inc., a corporation organized under the laws of Delaware,
with its principal place of business at 8000 S. Federal Way, Boise, Idaho (“Micron”), and Acclaim Innovations, LLC, a
limited liability company, organized under the laws of Delaware with its principal
place of business at 209 West Main Street, Boise, Idaho (“Acclaim”) (each a “Party” and collectively, the “Parties”).

RECITALS

WHEREAS, Toshiba
and certain of its Subsidiaries and Micron, through one of its Subsidiaries,
Lexar Media, Inc. (“Lexar”), are
currently engaged in litigation pending in California State Court, Sixth
District Court of Appeal, No. H029625 and Superior Court of California, County
of Santa Clara, No. 1-02-CV-812458 (the “State
Court Litigation”);

WHEREAS, Toshiba
and certain of its Subsidiaries and customers and Lexar and Acclaim are
currently engaged in the following litigation: Civil Case No. C-02-05273 and
Civil Case No. C-03cv167, pending in the Northern District of California; and
Inv. No. 337-TA-570, pending in the United States International Trade
Commission (collectively, the “Patent
Litigation” and together with the State Court Litigation, the “Pending Litigation”);

WHEREAS, the
Parties wish to resolve all claims [***];

NOW, THEREFORE, in
consideration of the mutual covenants, representations, warranties and other
terms and conditions contained herein, the sufficiency of which is hereby
acknowledged, the Parties, intending to be legally bound, do hereby agree as
follows:

Agreement

1.                                      DEFINITIONS

In addition to other terms defined elsewhere herein,
the following terms, as used in this Agreement, shall have the following
meanings:

1.1                                 “Acclaim Released Claims” is defined in
Section ‎2.3.

1.2                                 “Ancillary Parts” shall mean supporting
means, terminal members, leads and/or envelope means for surrounding and
protecting a Semiconductor Device, and any means included within or unitary
with such supporting means, terminal members, leads and/or envelope means.

 

1.3                                 “Claim(s)” is defined in Article ‎6.1.

1.4                                 “Complete Release” means each of the
following conditions having been satisfied:

(a)                                  all
Dismissals shall have been filed by Micron, Acclaim, Toshiba and their
respective Subsidiaries (as appropriate); and

(b)                                 the
Patent License Agreement shall have been executed and delivered by each of the
parties thereto.

1.5                                 “Cross License” means the Patent License
Agreement between Toshiba and Micron, dated August 4, 1997.

1.6                                 “Customer Claims” is defined in Section ‎2.4(b).

1.7                                 “Dismissals” is defined in Section ‎2.5.

1.8                                 “Indemnifying Party” is defined in Section ‎6.1.

1.9                                 “Lexar Patents” means all of the Patents,
applications and inventions existing and owned or controlled, in whole or in
part, by Lexar immediately prior to the formation of Acclaim, including,
without limitation, the patents and patent applications listed on Exhibit F.

1.10                           “Losses” is defined in Section ‎6.1.

1.11                           [***].

1.12                           [***].

1.13                           “Micron Parties” is defined in Section ‎6.2.

1.14                           [***].

1.15                           [***].

1.16                           “Patent Infringement Claims” is defined in
Section ‎2.2(a).

1.17                           “Patent License Agreement” means the Patent
License Agreement between the Parties dated as of September 11, 2006, in the
form of Exhibit D.

1.18                           “Patents” shall mean all classes or types of
patents, including original patents, design patents, utility models, as well as
divisions, reissues, reexaminations, continuations, continuations in part, and
applications for any of the aforementioned in all countries of the world.

1.19                           “Person” means any corporation, limited
liability company or partnership, general or limited partnership, sole
proprietorship, association, joint venture, individual in

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whatever capacity
(including as trustee, receiver, conservator, administrator or liquidator),
governmental authority, or other entity or body, whether domestic or foreign.

1.20                           “Releases” is defined in Section ‎2.5.

1.21                           “Retained Patents” means all Lexar Patents
except the Transferred Patents, including, without limitation, the patents and
patent applications listed on Exhibit G.

1.22                           [***].

1.23                           [***].

1.24                           “Semiconductor Device” shall mean a device
consisting primarily of a body or film of Semiconductor Material having a
plurality of electrodes associated therewith (whether or not said body consists
of a single Semiconductor Material or of a multiplicity of such materials, and
whether or not said body includes one or more layers or other regions of a
material or materials which are of a type other than Semiconductor Material);
and if provided as part thereof, said device includes all Ancillary Parts.  The term “Semiconductor
Device” shall also include (i) any memory module and any memory card
(both in the meaning which is widely used in the industry), and (ii) a printed
circuit board having memory functionality sold by an entity where each such
board sold by an entity includes memory manufactured by such entity and affixed
onto such board prior to sale, and where such sale is to an OEM customer.  Printed circuit boards sold by an entity
which do not include memory manufactured by such entity and which are sold to
end users are expressly excluded from the term Semiconductor Device.

1.25                           “Semiconductor Material” shall mean any
material having an electrical charge carrier concentration which increases with
temperature over some temperature range; and having a resistivity in its normal
operating temperature range of between 10E(-4) and l0E11 ohm-centimeters.

1.26                           “Subsidiary” shall mean a legal entity of
which a Person, as of the Effective Date or at any time during the Term, owns
or controls, directly or indirectly, either of the following (but only for so
long as such ownership or control exists):

(a)                                  if
such Person has shares or other securities, more than fifty percent (50%) of
the outstanding voting shares or securities entitled to vote for the election
of directors or others having similar managing authority; or

(b)                                 if
such Person does not have shares or other securities, more than fifty percent
(50%) of the ownership interests that represent the right to vote for the
election of managers, directors, or others having similar managing authority or
the right to make decisions for such Person.

1.27                           “Third Party Litigation” shall mean the
following litigation: Case No. 00-CV-4770 pending in the Northern District of
California (Lexar Media, Inc. v Pretec Electronics Corp. et al.); Case No.
03-CV-00355 pending in the Northern District of California (Lexar Media, Inc. v
Fuji Photo Film USA, Inc.); and Case No. 06-01571 pending in the 

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Northern District of California
(Fuji Photo Film Co., Ltd. And Fuji Photo Film U.S.A., Inc., v. Lexar Media,
Inc.).

1.28                           [***].

1.29                           [***].

1.30                           “Toshiba Parties” is defined in Section ‎6.1.

1.31                           [***].

1.32                           [***].

1.33                           “Transferred Patents” means all Lexar
Patents (whether filed as of the Effective Date or filed later and based on
inventions assigned by Lexar to Acclaim) that Lexar has assigned or otherwise
transferred to Acclaim prior to the Effective Date, including, without
limitation, the patents and patent applications listed on Exhibit H.

2.                                      EFFECTIVENESS OF AGREEMENT; RELEASES AND SETTLEMENT

2.1                                 Dismissal of Pending Litigation.

(a)                                  Within
ten (10) days after the Effective Date, the Parties shall cause to be
completed, executed and filed stipulated dismissals with prejudice of all
Pending Litigation, consistent with this Agreement and in the form attached
hereto as Exhibits A, B, C and C-1.

(b)                                 With
respect to Third Party Litigation, each Party shall, within thirty (30) days
after the Effective Date, take (and, in the case of Micron, shall cause Lexar
to take) such actions as required of such Party to dismiss from the Third Party
Litigation any claims, demands, and actions that arise from products made,
sold, offered for sale, imported or exported by or on behalf of Toshiba or any
of its Subsidiaries, and shall not subsequently assert any such claims, demands
or actions in any Third Party Litigation.

2.2                                 Release of Micron Claims.  Subject to Section 2.5, Micron, on behalf of
itself and its Subsidiaries, including, without limitation, Lexar and its
Subsidiaries, and all agents, representatives, directors, employees, and
successors and assigns of each of the foregoing, hereby irrevocably releases
and forever discharges Toshiba and its Subsidiaries [***] (each a “Toshiba
Released Party”) [***] shall be referred to as “Micron Released Claims”):

(a)                                  [***]

(b)                                 [***].

[***].

2.3                                 Release of Acclaim Claims.  Subject to Section 2.5, Acclaim, on behalf of
itself, its Subsidiaries and all agents, representatives, directors, employees,
and successors and

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assigns of each of the
foregoing, hereby irrevocably releases and forever discharges each Toshiba
Released Party, [***] with respect
to the following (claims identified in subsections 2.3(a) and 2.3(b) shall be
referred to as “Acclaim Released Claims”):

(a)                                  [***]

(b)                                 [***].

[***].

2.4                                 Release of Toshiba Claims.  Toshiba, on behalf of itself, its
Subsidiaries, and all agents, representatives, directors, employees, and
successors and assigns of each of the foregoing, hereby irrevocably releases
and forever discharges Micron and its Subsidiaries [***] (each a “Micron
Released Party”) [***] with
respect to the following (claims identified in subsections 2.4(a) and 2.4(b)
shall be referred to as “Toshiba Released
Claims”):

(a)                                  [***].

(b)                                 [***].

[***].

2.5                                 Effect of Dismissals and Releases.  The Parties intend that the dismissals
contemplated by Section 2.1 (the “Dismissals”),
and the releases contemplated by Sections 2.2, 2.3, and 2.4 (the “Releases”) will effect, without limitation,
[***]:

(a)                                  [***]

(b)                                 [***].

2.6                                 Waiver. 
Each of Toshiba, Micron, and Acclaim, on behalf of itself and its
Subsidiaries, agents, representatives, directors, employees, licensees,
sublicensees, and successors and assigns, each hereby irrevocably and forever
waives all rights it may have arising under California Civil Code Section 1542,
or any analogous requirement of law, with respect to the Pending Litigation and
the Releases.  Further, Toshiba, Micron,
and Acclaim, each on behalf of itself and its Subsidiaries, agents, representatives,
directors, employees, licensees, sublicensees, and successors and assigns, each
hereby confirms that it understands that Section 1542 provides that:

A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE
CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS FAVOR AT THE TIME OF
EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM MUST HAVE MATERIALLY AFFECTED HIS
SETTLEMENT WITH THE DEBTOR.

Each Party acknowledges that it has been fully
informed by its counsel concerning the effect and import of this Agreement
under California Civil Code Section 1542 and other

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analogous requirements of law.  The Parties acknowledge that they are aware
that they may hereafter discover facts in addition to or different from those
which they now know or believe to be true with respect to the subject matter of
the Pending Litigation and the Releases, but that they intend to, and do
hereby, [***] solely contingent
upon the occurrence of a Complete Release, without regard to the subsequent
discovery or existence of different or additional facts.

2.7                                 No Admission.  This Agreement is entered into in order to
compromise and settle disputed claims, without any acquiescence,
acknowledgement, or agreement by any Party as to the merit of any claims,
counterclaims, demands, actions, causes of action, affirmative defenses,
damages, liabilities, losses, payments, obligations, costs or expenses
(including, without limitation, attorneys’ fees and costs) related to the
Pending Litigation, Third Party Litigation or any claims within the scope of
the Releases.  Neither this Agreement nor
any part thereof shall be, or be used as, an admission of infringement or
liability by anyone, at any time, for any purpose.

2.8                                 Basis for Settlement.  Each Party acknowledges and agrees that the
terms of this Agreement are, and have been agreed to, for their mutual
convenience, in part to avoid the expense, distraction, risk and uncertainty of
further litigation, and after considering the risks of litigation and the
circumstances of their respective businesses. 
Each Party also acknowledges and agrees that it has relied entirely on
its own judgment, belief and knowledge (including its judgment, belief and
knowledge with respect to the foregoing, the extent and duration of the claimed
damages in the Pending Litigation and Third Party Litigation, and the value of
settling the Pending Litigation and Third Party Litigation at this time) and
the advice and recommendations of its own independently selected counsel, and,
accordingly, neither it nor its Subsidiaries shall (or shall have the right to)
deny or challenge the validity of this Agreement or any of the obligations of
the Parties hereunder.

2.9                                 Attorneys Fees and Costs.  Except as set forth in Section 6, each party
shall be responsible for its own costs and attorneys’ fees, if any, in
connection with this Agreement, including, without limitation, in connection
with preparing and filing the Dismissals and the Releases.

2.10                           Effectiveness of Releases.  The Releases shall not be effective unless
and until a Complete Release is in effect.

3.                                      LICENSES AND RELATED COVENANTS

3.1                                 [***].

3.2                                 Concurrently
with the execution of this Agreement, Acclaim, Micron, and Toshiba each agrees
to enter into the Patent License Agreement.

3.3                                 Micron
hereby covenants that:

(a)                                  It
shall require that any assignees, exclusive licensees or other transferees of
any Retained Patents agree as a condition to the effectiveness of such
assignment, license or other transfer to the terms and conditions of this
Agreement and the Patent License

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Agreement, and that such
assignees, exclusive licensees or other transferees require any subsequent
assignees, exclusive licensees or other transferees to agree to do so.

(b)                                 [***].

(c)                                  In
the event that it sells or otherwise transfers any of its interest in Acclaim,
it shall require the purchaser thereof to agree to all of Micron’s undertakings
hereunder, provided, however, that such agreement shall not release Micron from
its undertakings hereunder.

(d)                                 It
shall require any of its successors in interest (including, without limitation,
any purchaser of all or substantially all its assets) to agree to all of
Micron’s undertakings hereunder.

(e)                                  Any
purported or attempted assignment, license, or other transfer not effected in
accordance with this Section shall be null and void.

3.4                                 Acclaim
hereby covenants that:

(a)                                  It
shall require that any assignees, exclusive licensees or other transferees of
any Transferred Patents agree as a condition to the effectiveness of such
assignment, license or other transfer to the terms and conditions of this
Agreement and the Patent License Agreement, and that such assignees, exclusive
licensees or other transferees require any subsequent assignees, exclusive
licensees or other transferees to agree to do so.

(b)                                 [***].

(c)                                  It
shall require any of its successors in interest (including, without limitation,
any purchaser of all or substantially all its assets) to agree to all of
Acclaim’s undertakings hereunder.

(d)                                 Any
purported or attempted assignment, license, or other transfer not effected in
accordance with this Section shall be null and void.

4.                                      REPRESENTATIONS, WARRANTIES AND COVENANTS

4.1                                 Representations and Warranties of all Parties.  Each Party represents and warrants that:

(a)                                  It
has the full power to enter into this Agreement, and, together with its
Subsidiaries, has the sole right and authority to grant the licenses,
dismissals and releases to be granted by that Party hereunder, without the need
for any licenses, releases, consents, approvals or immunities not yet granted
or obtained;

(b)                                 It
has not assigned or transferred any right or interest in the Micron Released
Claims, Acclaim Released Claims, or Toshiba Released Claims, as the case may
be, to any other Person; and

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(c)                                  The
execution, delivery and performance of this Agreement by such Party does not
and will not conflict with, or result in any breach or violation of, or default
under (with or without notice or lapse of time, or both) any contract or other
agreement or instrument, permit, concession, franchise or license to which such
Party is a party.

4.2                                 Representations and Warranties of Micron.  Micron represents and warrants that:

(a)                                  No
inventions or industrial property rights not claimed in Patents were
transferred by Lexar to Acclaim.

(b)                                 [***].

(c)                                  All
Lexar Patents either (1) have been retained by Lexar or (2) if they have been
transferred (in whole or in part), were transferred solely to Acclaim and, as
of the Effective Date and the date of a Complete Release, are owned solely by
Acclaim.

(d)                                 Neither
Micron nor any Micron Subsidiary other than Lexar is a party to any Pending
Litigation or Third Party Litigation or has any right to prosecute any Pending
Litigation or Third Party Litigation, and Lexar has transferred all rights to
prosecute actions for past damages under the Transferred Patents to Acclaim
(and has not transferred any such rights to Micron or any Micron Subsidiary
other than Lexar), and to the extent any rights to recover for damages under
the Transferred Patents are retained by Lexar, such claims are subject to the
release set forth in Section 2.2 above.

5.                                      CONSIDERATION

5.1                                 Acclaim
and Micron each agree that, except in accordance with Article 5 of the Patent
License Agreement, no money is or shall be due to Acclaim, Lexar, Micron or any
of their respective Subsidiaries by Toshiba or any other Toshiba Released Party
as consideration for any of the licenses, covenants, Releases and other rights
in this Agreement or the Patent License Agreement.

6.                                      [***].

6.1                                 [***].

6.2                                 [***].

7.                                      CONFIDENTIAL INFORMATION

7.1                                 Confidentiality of Terms.  The Parties intend for the terms of this
Agreement to be and remain confidential and, except as provided below, each
Party shall maintain the confidentiality hereof.

7.2                                 Obligations.  Notwithstanding the confidentiality of this Agreement,
the Parties may disclose the existence (but not any of the terms, except as
provided in this Section ‎7.2) of this Agreement
to any third party.  Without limiting the
generality of the foregoing, no

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Party shall issue any
press releases, make any statements to the media, or make any other public
statements regarding this Agreement without the prior written consent of the
other Parties, except for (a) press releases and statements approved in writing
by the other Parties on or around the Effective Date and (b) statements based
on and consistent with such press releases and statements.  In connection herewith, the Parties agree to
issue press releases announcing the settlement of the Pending Litigation in the
form of Exhibit E hereto.  In addition, if
a Party determines upon the advice of legal counsel that disclosure of this
Agreement or its terms to a third party is required by applicable law,
regulation (including regulations under the Securities Exchange Act of 1934, as
amended), court order, government agency or arbitration proceeding, such Party
may make such disclosure, provided that the disclosing Party exercises
reasonable efforts to limit the disclosure and seek confidential treatment of
this Agreement and its terms to the maximum extent permitted by law.  In addition, a Party may disclose this
Agreement and its terms (i) in confidence, to its Subsidiaries, (ii) [***];
(iv) to its and its Subsidiaries’ financial, accounting, legal and other
advisors, (v) [***], (vi) to any court or governmental body or agency to as
required to effect termination or dismissal of any proceeding that is to be
terminated or dismissed under the Settlement and Release Agreement, including
but not limited to any proceeding before the International Trade Commission; and
(vii) to the extent disclosure is required to enforce the terms of this
Agreement.

8.                                      TERM

This Agreement shall commence on the Effective Date
and shall continue to be in effect until the expiration of the last to expire
of the Lexar Patents and all Patents that later issue based on any applications
claiming priority to any of the Lexar Patents.

9.                                      GENERAL

9.1                                 Notices. 
Any notice, request, demand or other communication required or permitted
hereunder shall be in writing, shall reference this Agreement and shall be: (a)
delivered personally; (b) sent by facsimile to a number designated in advance
by the recipient Party; (c) sent by registered or certified mail, return
receipt requested, postage prepaid; or (d) sent by a private industry express
courier, with written confirmation of receipt. 
All notices shall be sent to the address set forth in the preamble on
the first page of this Agreement and to the attention of the person executing
this Agreement on such Party’s behalf (or to such other address or person as
may be designated by a Party by giving written notice to the other Parties
pursuant to this Section ‎9.1).

9.2                                 Governing Law.  This Agreement shall be governed by, and
construed and interpreted in accordance with, the laws of the State of Delaware
(without giving effect to the laws, rules or principles thereof regarding
conflict of laws).

9.3                                 Jurisdiction.  Each Party (i) hereby irrevocably submits
itself to and consents to the exclusive jurisdiction of the United States
District Court for the District of Delaware (or, if such court lacks
jurisdiction, the courts of the State of Delaware) for the purposes of any
action, claim, suit or proceeding arising out of or relating to this Agreement,
and (ii) hereby waives, and agrees not to assert, by way of motion, as a
defense or otherwise, in any such action, claim, suit or proceeding, any
argument that it is not personally subject to the

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jurisdiction of such
court(s), that the action, claim, suit or proceeding is brought in an
inconvenient forum, or that the venue of the action, claim, suit or proceeding
is improper.  Each Party hereby agrees to
the entry of an order and to the confession of judgment to enforce any
resolution, settlement, order or award made pursuant to this Section ‎9.3 by such court and in connection therewith hereby
waives, and agrees not to assert by way of motion, as a defense or otherwise,
any claim that such resolution, settlement, order or award is inconsistent with
or violates any laws or public policy.

9.4                                 Relationship of Parties.  Nothing contained in this Agreement shall be
deemed or construed as creating a joint venture, partnership, agency,
employment or fiduciary relationship among the Parties.  None of the Parties nor their respective
agents have any authority of any kind to bind any other Party or Parties in any
respect whatsoever, and the relationship of the Parties is, and at all times
shall continue to be, that of independent contractors.

9.5                                 Assignment. 
This Agreement may not be assigned by a Party without the prior written
consent of the other Parties, which consent shall not be unreasonably withheld
or delayed.  Notwithstanding the
foregoing, a Party has the right to assign this Agreement, without the other Parties’
consent, to a Person that succeeds to all or substantially all of a Party’s
business or assets relating to this Agreement, whether by sale, merger,
operation of law or otherwise, provided that such assignee or transferee agrees
in writing to be bound by the terms and conditions of this Agreement, and
provided further that no such assignment shall limit the effectiveness of the
releases set forth in this Agreement or excuse any obligations of the assigning
Party under this Agreement.  This
Agreement shall be binding upon and shall inure to the benefit of the Parties
and their respective successors and permitted assigns.

9.6                                 Further Assurances.  Each Party agrees to take or cause to be
taken (including, in the case of Micron, to cause Lexar to take) such further
actions, and to execute, deliver and file or cause to be executed, delivered
and filed such further documents and instruments, and to obtain such consents,
as may be reasonably required or requested in order to effectuate fully the
purposes, terms and conditions of this Agreement.

9.7                                 Waiver. 
A waiver, express or implied, by a Party of any right under this
Agreement or of any failure to perform or breach hereof by another Party hereto
shall not constitute or be deemed to be a waiver of any other right hereunder
or of any other failure to perform or breach hereof by such other Party,
whether of a similar or dissimilar nature thereto.

9.8                                 Severability.  If any provision of this Agreement is
unenforceable or invalid under any applicable law or is so held by applicable
court decision, such unenforceability or invalidity shall not render this
Agreement unenforceable or invalid as a whole, and, in such event, such
provision shall be changed and interpreted so as to best accomplish the
objectives of the Parties within the limits of applicable law or applicable
court decision.

9.9                                 Captions and Headings.  The captions and headings used in this
Agreement are inserted for convenience only, do not form a part of this
Agreement, and shall not be used in any way to construe or interpret this
Agreement.

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9.10                           Construction.  This Agreement has been negotiated by the
Parties and shall be interpreted fairly in accordance with its terms and
without any construction in favor of or against any of the Parties.

9.11                           Counterparts.  This Agreement may be executed (including,
without limitation, by facsimile signature) in one or more counterparts, with
the same effect as if the Parties had signed the same document.  Each counterpart so executed shall be deemed
to be an original, and all such counterparts shall be construed together and
shall constitute one Agreement.

9.12                           Entire Agreement; Amendment.  This Agreement (including the Exhibit(s)
attached hereto which are incorporated herein by reference), the Patent License
Agreement, and the Cross License constitute the entire agreement and
understanding among the Parties with respect to the subject matter hereof, and
supersede any and all prior or contemporaneous negotiations, representations,
agreements and understandings, written or oral, that the Parties may have
reached with respect to the subject matter hereof.  No agreements altering or supplementing the
terms hereof may be made except by means of a written document expressly
referring to this Agreement which expressly identifies the specific terms to be
altered or supplemented and is signed by a duly authorized representative of
each of the Parties hereto.

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IN WITNESS WHEREOF, the Parties hereto have caused
their duly authorized representatives to execute this Agreement as of the
Effective Date.

	
   

  	
   

  	
   

  
	
  Toshiba Corporation

  	
   

  	
  Micron Technology, Inc. 

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By: 

  	
  /s/ Masashi Muromachi

  	
   

  	
  By: 

  	
  /s/ Steven R. Appleton 

  
	
  Name: Masashi Muromachi

  	
   

  	
  Name: Steven R. Appleton 

  
	
  Title:

  	
  Corporate
  Executive Vice President,

  	
   

  	
  Title:   President

  
	
   

  	
  President and
  CEO

  	
   

  	
   

  
	
   

  	
  Semiconductor
  Company

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Acclaim Innovations, LLC 

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Scot Ludwig 

  
	
   

  	
   

  	
  Name: Scot Ludwig 

  
	
   

  	
   

  	
  Title:   Authorized
  Representative

  
						

 

 

Exhibits

	
   

  	
  Exhibit A

  	
   

  	
  Stipulated Dismissals

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Exhibit B

  	
   

  	
  Stipulated Dismissals

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Exhibit C

  	
   

  	
  Stipulated Dismissals

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Exhibit C-1

  	
   

  	
  Stipulated Dismissals

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Exhibit D

  	
   

  	
  Patent License Agreement between Toshiba,

  
	
   

  	
   

  	
   

  	
  Micron and Acclaim

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Exhibit E

  	
   

  	
  Press Release

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Exhibit F

  	
   

  	
  List of Lexar Patents

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Exhibit G

  	
   

  	
  List of Retained Patents

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Exhibit H

  	
   

  	
  List of Transferred PatentsEXHIBIT 10.66

[***] DENOTES CONFIDENTIAL MATERIALS OMITTED AND FILED

SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION

PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT.

PATENT
LICENSE AGREEMENT

This agreement (this “Agreement”) is made this 15th day
of September, 2006 (“Effective Date”) by and among Toshiba Corporation, a
Japanese corporation duly organized and existing under the laws of Japan and
having its principal place of business at 1 1, Shibaura l Chome, Minato Ku,
Tokyo 105-8001, Japan (“Toshiba”), Acclaim Innovations, LLC, a limited
liability corporation duly organized and existing under the laws of the state
of Delaware, United States of America and having its principal place of
business at 209 West Main Street, Boise, Idaho (“Acclaim”), and Micron
Technology, Inc., a corporation organized and existing under the laws of
Delaware, United States of America and having its principal place of business
at 8000 S. Federal Way, Boise, Idaho (“Micron”).

RECITALS

WHEREAS the Parties have concurrently entered into
that Settlement and Release Agreement, dated September 15, 2006 (the “Settlement
and Release Agreement”);

WHEREAS Micron owns or controls, or has rights
directly or through Subsidiaries in, various patents issued, and applications
for patents pending, which patents and pending applications relate to
semiconductor devices and integrated circuits, in various countries of the
world, and Toshiba desires to obtain rights under or to such patents;

WHEREAS Acclaim owns or controls, or has rights directly
or through Subsidiaries in, various patents issued, and applications for
patents pending, which patents and pending applications relate to semiconductor
devices and integrated circuits, in various countries of the world, and Toshiba
desires to obtain rights under or to such patents;

WHEREAS Micron, Acclaim and Toshiba each represents,
on its own behalf, that it is fully authorized to deal generally with and to
make this Agreement respecting the subject matter hereof;

NOW THEREFORE, in consideration of the mutual
covenants, representations, warranties and other terms and conditions
hereinafter set forth, and for other good and valuable consideration, the
receipt and sufficiency of which is hereby acknowledged, the Parties hereto
agree as follows:

ARTICLE 1

DEFINITIONS

1.1           In this Agreement,
capitalized terms have the meanings specified in attached Schedule 1.

 

ARTICLE 2

LICENSE GRANTS

2.1           Acclaim hereby grants
to Toshiba and its Subsidiaries a worldwide, nonexclusive, irrevocable,
nontransferable license, without the right to sublicense third parties, under
the Acclaim Patents to make, have made, use, sell, offer for sale, import or
otherwise dispose of Licensed Products and to use any methods covered by
Acclaim Patents in connection with Licensed Products.  The license granted to Toshiba and its
Subsidiaries under this Article 2.1 shall be effective until the end of the
License Term.

2.2           Micron hereby grants to
Toshiba and its Subsidiaries a worldwide, nonexclusive, irrevocable,
nontransferable license, without the right to sublicense third parties, under
the Retained Patents to make, have made, use, sell, offer for sale, import or
otherwise dispose of Licensed Products and to use any methods covered by
Retained Patents in connection with Licensed Products.  The license granted to Toshiba and its
Subsidiaries under this Article 2.2 shall be effective until the end of the
License Term.

2.3           The right to “have made”
as used in this Agreement shall mean [***].

2.4           With respect to any
legal entity which qualifies as a Subsidiary on the Effective Date but later
ceases to qualify as a Subsidiary (“Former Subsidiary”), the licenses granted
pursuant to Articles 2.1 and 2.2 and covenants granted pursuant to Article 3,
which are in effect on the date such Former Subsidiary ceases to qualify as a
Subsidiary [***].

2.4.1        [***].

2.5           No licenses under any
copyrights, mask work rights, trademarks or other intellectual property rights
other than Retained Patents and Acclaim Patents are granted under this
Agreement.

2.6           Micron and Acclaim make
no express or implied warranty or representation that the manufacture, use,
sale, offer for sale, importation or other disposition of Licensed Products by
Toshiba and/or its Subsidiaries will not infringe patents or other intellectual
property rights of third parties.

2.7           Micron and Acclaim make
no express or implied representation nor assume any responsibility or
obligation regarding the scope, validity, or enforcement of any Patent licensed
hereunder.

2.8           No license is granted
by Micron, Acclaim, or any of their Subsidiaries, either directly or by
implication, estoppel or otherwise, under any Patent licensed by reason of this
Agreement, to any third party which acquires the Licensed Products and combines
one or more Licensed Products with any other product(s).  For the avoidance of doubt, the licenses
granted under this Agreement exclude any implied license to purchasers from
Toshiba with respect to other patented products that utilize a Licensed Product
or which utilize a plurality of separate Licensed Products.

 2
 

 

ARTICLE 3

[***]

3.1           [***].

3.2           [***]:

3.2.1        [***]

3.2.2        [***]:

(i)            [***]

(ii)           [***].

3.2.3        [***].

3.3           [***]:

3.3.1        [***].

3.3.2        [***]:

(i)            [***]

(ii)           [***]

(iii)          [***].

ARTICLE 4

REPRESENTATIONS, WARRANTIES AND COVENANTS

4.1           Representations and
Warranties of all Parties.  Each Party
represents and warrants that:

4.1.1        It has the full power to
enter into this Agreement, and, together with its Subsidiaries, has the sole
right and authority to grant the licenses and agree to any other term or
provision of this Agreement, without the need for any licenses, releases,
consents, approvals or immunities not yet granted or obtained;

4.1.2        The execution, delivery
and performance of this Agreement by such Party does not and will not conflict
with, or result in any breach or violation of, or default under (with or
without notice or lapse of time, or both) any contract or other agreement or
instrument, permit, concession, franchise or license to which such Party is a
party; and

4.1.3        It has relied entirely on
its own judgment, belief and knowledge and the advice and recommendations of
its own independently selected counsel, and accordingly, neither

 3
 

 

it nor its Subsidiaries
shall (or shall have the right to) deny or challenge the validity of this
Agreement or the obligations of the Parties hereunder.

4.2           Micron hereby
represents, warrants and covenants that:

4.2.1        No inventions or
industrial property rights not claimed in Patents were transferred by Lexar to
Acclaim.

4.2.2        To the knowledge of Micron,
Lexar has not transferred or assigned any Patent, invention or other industrial
property right that Lexar owned or controlled during the period beginning on
the date that is the earliest filing date of any lawsuit alleging patent
infringement that is dismissed under the Settlement and Release Agreement and
extending through the Effective Date, other than Transferred Patents
transferred to Acclaim.

4.2.3        All Lexar Patents either
(i) have been retained by Lexar or (ii) if they have been transferred (in whole
or in part), were transferred solely to Acclaim, and as of the Effective Date
are owned solely by Acclaim.

4.2.4        It shall require that any
assignees, exclusive licensees or other transferees of any Retained Patents
agree as a condition to the effectiveness of such assignment, license or other
transfer to the terms and conditions of this Agreement and the Settlement and
Release Agreement, and that such assignees, exclusive licensees or other
transferees require any subsequent assignees, exclusive licensees or other
transferees to agree to do so.

4.2.5        [***].

4.2.6        In the event that it sells
or otherwise transfers any of its interest in Acclaim and/or Lexar, Micron
shall require the purchaser(s) thereof to agree to all of Micron’s undertakings
hereunder, provided, however, that such agreement shall not release Micron from
its undertakings hereunder.

4.2.7        It shall require any of
its successors in interest (including without limitation any purchaser of all
or substantially all its assets) to agree to all of Micron’s undertakings
hereunder.

4.2.8        Any purported or attempted
assignment, license, or other transfer not effected in accordance with this
Article 4.2 shall be null and void.

4.3           Acclaim hereby
represents, warrants and covenants that:

4.3.1        As of the Effective Date,
all Transferred Patents are owned solely by Acclaim and no rights under or with
respect to the Transferred Patents have been granted, assigned or transferred
to any third party.

4.3.2        It shall require that any
assignees, exclusive licensees or other transferees of any Acclaim Patents
agree as a condition to the effectiveness of such assignment, license or other
transfer to the terms and conditions of this Agreement and the Settlement and
Release

 4
 

 

Agreement, and that such
assignees, exclusive licensees or other transferees require any subsequent
assignees, exclusive licensees or other transferees to agree to do so.

4.3.3        [***].

4.3.4        It shall require any of
its successors in interest (including without limitation any purchaser of all
or substantially all its assets) to agree to all of Acclaim’s undertakings
hereunder.

4.3.5        Any purported or attempted
assignment, license, or other transfer not effected in accordance with this
Article 4.3 shall be null and void.

4.4           [***].

[***].

[***].

ARTICLE 5

PAYMENT

5.1           In consideration of the
licenses granted by Micron and Acclaim under Articles 2.1 and 2.2, Toshiba will
[***], provided that Toshiba’s payment obligations to Micron under this Article
5.1 shall only arise upon the Settlement and Release Agreement’s having been
entered into by the Parties thereto.  The
foregoing semi-annual payments shall be made in accordance with the following
schedule:

5.1.1        [***]

5.1.2        [***]

5.1.3        [***]

5.1.4        [***]

5.1.5        [***]

5.1.6        [***].

5.2           Acclaim and Micron each
agree that, other than the amounts set forth in Article 5.1, no money is or
shall be due to Acclaim, Lexar, Micron or any of their respective Subsidiaries
by a Toshiba Party as consideration for any of the licenses, covenants,
releases and other rights in this Agreement and in the Settlement and Release
Agreement.

5.3           Toshiba agrees to make
all necessary filings, and take all other actions reasonably necessary to
ensure that no payments hereunder are subject to any Japanese withholding tax
to the fullest extent permitted under Japanese law, provided that Micron
provides all cooperation and information necessary to enable Toshiba to make
such filings and take such other actions. 
If,

 5
 

 

notwithstanding the foregoing, the Japanese government
imposes any withholding taxes upon any payments made hereunder, such taxes
shall be borne by Micron.  Toshiba shall
assist Micron in any intervention necessary to exempt such payments from or
minimize the amount of any such withholding taxes, and Toshiba shall make all
necessary fillings, and take such other actions, as are reasonably necessary to
assist Micron with the foregoing. 
Toshiba shall withhold the amount of any such withholding taxes levied
by the Japanese government from the relevant payment(s) to which such taxes
correspond, shall promptly remit such withholding taxes to the Japanese Tax
Office; and shall promptly deliver to Micron the official certificate of its
payment of such withholding taxes to enable Micron to support a claim of
foreign tax credit with respect to such withholding taxes against taxes levied
by the United States Government against Micron.

5.4           All amounts due
hereunder shall be paid in US dollars by wire transfer to such financial
institution and account number as Micron designates in writing to Toshiba.

ARTICLE 6

TERMINATION

6.1           In the event of a
material breach of this Agreement by either Acclaim or Micron, on the one hand,
or Toshiba, on the other hand, if such material breach is not corrected within
sixty (60) days after written notice thereof is received by Acclaim or Micron,
on the one hand, or Toshiba, on the other hand, as the breaching Party, [***].

6.2           Either Micron or
Acclaim shall have the right, upon written notice to Toshiba, to terminate this
Agreement forthwith (i) in the event the normal business conduct of Toshiba
ceases for a period of not less than 3 months, or (ii) in the event Toshiba
becomes bankrupt or files for bankruptcy protection, within 3 months after such
event.

6.3           Toshiba shall have the
right, upon written notice to Micron, to terminate this Agreement forthwith (i)
in the event the normal business conduct of Micron ceases for a period of not
less than 3 months, or (ii) in the event Micron becomes bankrupt or files for
bankruptcy protection, within 3 months after such event.

6.4           Notwithstanding any
provision of this Agreement, if Toshiba terminates this Agreement under either
Article 6.1 or Article 6.3, Articles 2, 3, 4, 6.1, 6.4, 7 and 8 shall survive
any expiration or termination of this Agreement.

ARTICLE 7

ASSIGNMENT

7.1           No Party or Subsidiary
shall assign, extend or otherwise transfer any of its rights or privileges
hereunder, nor shall they inure to the benefit of any successor of such Party,
whether by operation of law or otherwise, without the prior written consent of
Micron, in the case of any such assignment, extension or transfer by Toshiba or
any of its Subsidiaries, or of Toshiba, in the case of any such assignment,
extension or transfer by Micron, Acclaim or any of their Subsidiaries.  In the event that a Party or its Subsidiary
is ever acquired by or merged with or into another company or entity, the
license granted to such Party or Subsidiary herein shall not

 6
 

 

extend to any operations or activities of such other
company or entity (whether preexisting or later created) with which such Party
or Subsidiary is or becomes combined or merged. 
The provisions of this Article 7.1 are not intended to terminate,
diminish, expand, extend or otherwise affect any preexisting licenses or releases
granted to the other company or entity by the licensing Party or Parties,
[***].

ARTICLE 8

CONFIDENTIALITY

8.1           The Parties hereto
shall keep the terms of this Agreement confidential, except that:

8.1.1        a Party may disclose the
terms of this Agreement to any court or governmental body or agency compelling
such disclosure, but only to the extent so compelled;

8.1.2        a Party may disclose the
terms of this Agreement as otherwise may be required by any law and the rules
or regulations promulgated under such law;

8.1.3        a Party may disclose the terms
of this Agreement to any court or governmental body or agency as required to
effect termination or dismissal of any proceeding that is to be terminated or
dismissed under the Settlement and Release Agreement, including but not limited
to any proceeding before the International Trade Commission;

8.1.4        a Party may disclose this
Agreement and its terms to its and its Subsidiaries’ financial, accounting,
legal and other advisors, provided that such advisors agree to be bound by
confidentiality provisions prohibiting disclosure of this Agreement to other
third parties;

8.1.5        [***];

8.1.6        [***];

8.1.7        [***];

8.1.8        a Party may disclose to
third parties that this Agreement exists; and

8.1.9        a Party may disclose the
terms of this Agreement to its Subsidiaries.

The Parties understand and agree that Micron has
determined that it is required to file a copy of this Agreement and the
Settlement and Release Agreement as an attachment to its upcoming filing on
Form 10-Q with the United States Securities and Exchange Commission (“SEC”)
pursuant to United States securities laws. 
Micron agrees that it will initially file the Agreement and the
Settlement and Release Agreement in the form attached hereto as Exhibit D, and
shall request confidential treatment for all portions of the Agreement
highlighted in Exhibit D.  If the SEC
refuses to grant the request for confidential treatment without modification,
Micron will seek to obtain confidential treatment that is consistent with its
duties under applicable United States securities laws.  Micron agrees to take reasonable efforts to
share any

 7
 

 

SEC comments with Toshiba ; provided, however, Toshiba
shall have no more than 24 hours to provide Micron with its views as to the SEC
written comments.  Micron shall have no
obligation to Toshiba to reflect Toshiba’s comments, if any, in Micron’s
response to the SEC and Micron shall have no liability to Toshiba for the
ultimate disclosure agreed upon between the SEC and Micron.

8.2           A Party receiving a
request, subpoena or order for the disclosure of the terms or production of
this Agreement shall notify the other Party as soon as practicable and, if at
all possible, in sufficient time to allow the other Party to oppose disclosure
or seek appropriate protective orders. 
The Party receiving such request, subpoena or order shall cooperate to
the extent reasonably possible with the other Party in any effort to so oppose
disclosure or seek protective orders.

ARTICLE 9

MISCELLANEOUS

9.1           This Agreement shall be
governed by and interpreted in accordance with the laws of the State of
Delaware, U.S.A., without regard to its conflict of law principles.

9.2           Each Party (i) hereby
irrevocably submits itself to and consents to the exclusive jurisdiction of the
United States District Court for the District of Delaware (or, if such court
lacks jurisdiction, the courts of the State of Delaware) for the purposes of
any action, claim, suit or proceeding arising out of or relating to this
Agreement, and (ii) hereby waives, and agrees not to assert, by way of motion,
as a defense or otherwise, in any such action, claim, suit or proceeding, any
argument that it is not personally subject to the jurisdiction of such
court(s), that the action, claim, suit or proceeding is brought in an
inconvenient forum, or that the venue of the action, claim, suit or proceeding
is improper.  Each Party hereby agrees to
the entry of an order and to the confession of judgment to enforce any
resolution, settlement, order or award made pursuant to this Article 8.2 by
such court and in connection therewith hereby waives, and agrees not to assert
by way of motion, as a defense or otherwise, any claim that such resolution,
settlement, order or award is inconsistent with or violates any laws or public
policy.

9.3           Each Party hereby
irrevocably waives, to the fullest extent permitted by applicable law, the
right to a trial by jury of any action, claim, suit or proceeding arising out
of or relating to this Agreement or the transactions contemplated hereby, in
any action, proceeding or other litigation of any type brought by such Party,
whether with respect to contract claims, tort claims, or otherwise.  The Parties agree that any such action,
claim, suit or proceeding shall be tried by a court trial without a jury.  Without limiting the foregoing, the Parties
further agree that the right to a trial by jury is waived by operation of this
Article 8.3 as to any action, counterclaim or other proceeding which seeks, in
whole or in part, to challenge the validity or enforceability of this Agreement
or any provision hereof.  This waiver
shall apply to any subsequent amendments, renewals, supplements or
modifications to this Agreement.

9.4           Each Party agrees to
take or cause to be taken (including without limitation causing its
Subsidiaries to take or cause to be taken) such further actions, and to
execute, deliver and file, or cause to be executed, delivered and filed
(including without limitation causing its

 8
 

 

Subsidiaries to execute, deliver and file) such
further documents and instruments, and to obtain such consents, as may be
reasonably required or requested in order to effectuate fully the purposes,
terms and conditions of this Agreement.

9.5           This Agreement
(including the Schedule and Exhibits attached hereto which are incorporated
herein by reference), the Settlement and Release Agreement, and the Cross
License, set forth the entire agreement and understanding among the Parties
with respect to the subject matter hereof, and supersede all previous
understandings, agreements, contracts, communications and representations,
whether written or oral, concerning the subject matter to which this Agreement
relates and shall not be extended, supplemented or amended in any manner,
except by an instrument in writing duly executed by authorized officers or
representatives of the Parties hereto which expressly identifies the specific
terms to be extended, supplemented or amended. 
[***].

9.6           Any notice, request,
demand or other communication required or permitted hereunder shall be in
writing, shall reference this Agreement and shall be: (a) delivered personally;
(b) sent by facsimile, with written confirmation of receipt; (c) sent by
registered or certified mail, return receipt requested, postage prepaid; or (d)
sent by a private industry express courier, with written confirmation of
receipt; and in the case of Acclaim shall be addressed to:

Acclaim Innovations, LLC

209 West Main Street

Boise, ID  83702

USA

Attention: 
[***]

Telephone:

and in the case of Micron to:

8000 S. Federal Way

Boise, ID 
83716-9632

USA

Attention:  General Counsel

Telephone:  +1-208-368-4517

and in the case of Toshiba to:

Toshiba Corporation

1-1, Shibaura, l-chome

Minato-ku, Tokyo 105-8001

JAPAN

Attention: 
General Manager, IP Division,

Semiconductor Company

Telephone:  +81-3-3457-3422

 9
 

 

or to such other address or addresses as a Party may
from time to time designate as its address by notice in writing to the other
Parties.  All notices so addressed are
effective when received.

9.7           If any provision, or
portion thereof, of this Agreement, or application thereof to any person,
place, or circumstance, shall be held by a court of competent jurisdiction to
be invalid, unenforceable, or void, the remainder of this Agreement and such
provision as otherwise applied shall remain in full force.

9.8           If necessary, the
Parties shall file necessary applications or documents with the government
under the laws of their respective countries and do their best to have this
Agreement approved.  This Agreement shall
come into force on the date of its approval by the U.S. and Japanese
Government, whichever occurs later, as and if necessary.

[REMAINDER OF PAGE
INTENTIONALLY LEFT BLANK]

 10

 

IN WITNESS WHEREOF, the Parties have caused this
Agreement to be executed in duplicate on the dates set forth below: 

	
  ACCLAIM INNOVATIONS, LLC

  	
   

  	
  TOSHIBA CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Scot Ludwig

  	
   

  	
   

  	
  /s/ Masashi Muromachi

  
	
  Name: Scot Ludwig

  	
   

  	
  Name:

  	
  Masashi Muromachi

  
	
  Title: Authorized Representative

  	
   

  	
  Title:

  	
  Corporate Executive Vice President,

  
	
   

  	
   

  	
   

  	
  President and CEO

  
	
   

  	
   

  	
   

  	
  Semiconductor Company

  
	
   

  	
   

  	
   

  
	
  Date: September 11, 2006

  	
   

  	
  Date: September 11, 2006

  
	
   

  	
   

  	
   

  
	
  MICRON TECHNOLOGY, INC.

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Steven R. Appleton

  	
   

  	
   

  	
   

  
	
  Name:

  	
  Steven R. Appleton

  	
   

  	
   

  
	
   

  	
  President

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Date: September 11, 2006

  	
   

  	
   

  
							

 

SCHEDULE
1

DEFINITIONS

1.                                       “Acclaim”
shall have the meaning set forth in the initial paragraph of this Agreement.

2.                                       “Acclaim
Patents” means all Lexar Patents (whether issued or filed as of the Effective
Date or filed later and claiming priority to a Lexar Patent that was issued or
filed as of the Effective Date) that Lexar has assigned or otherwise
transferred to Acclaim prior to the Effective Date (the “Transferred Patents”),
and any other Patents which are counterparts, continuations, divisionals,
continuations in part, reissues, or reexaminations of any of the Transferred
Patents, and all Patents entitled to claim a priority date from any of the
foregoing, which Acclaim or any of its Subsidiaries now or in the future owns
or controls, or as to which Acclaim or any of its Subsidiaries has the right to
grant licenses or accord freedom from suit, including without limitation the
patents and patent applications listed on Exhibit A.  Without limiting the foregoing and notwithstanding
anything else to the contrary in this Agreement, Acclaim Patents shall include
all Patents issued as of the Effective Date or issued after the Effective Date
on patent applications filed as of the Effective Date or filed later and
claiming priority to Patents issued or filed as of the Effective Date and
assigned by Lexar to Acclaim, where such Patent (including such patent
applications) was assigned by Lexar to Acclaim prior to the Effective Date.

3.                                       “Agreement”
shall have the meaning set forth in the initial paragraph of this Patent
License Agreement.

4.                                       “Ancillary
Parts” shall mean supporting means, terminal members, leads and/or envelope
means for surrounding and protecting a Semiconductor Device, and any means
included within or unitary with such supporting means, terminal members, leads
and/or envelope means.

5.                                       [***].

6.                                       [***].

7.                                       “Associate”
shall mean, in relation to an entity, any Subsidiary of such entity, or any
customer of such entity or of its Subsidiaries.

8.                                       [***].

9.                                       [***].

10.                                 “Cross
License” shall mean the Patent License Agreement between Toshiba and Micron,
dated August 4, 1997.

11.                                 [***].

 

12.                                 “Effective
Date” shall have the meaning set forth in the initial paragraph of this
Agreement.

13.                                 [***].

14.                                 [***].

15.                                 “Former
Subsidiary” shall have the meaning set forth in Article 2.4.

16.                                 [***].

17.                                 [***].

18.                                 [***].

19.                                 [***].

20.                                 “Lexar”
means Lexar Media, Inc.

21.                                 “Lexar
Patents” means all of the Patents, applications and inventions existing and
owned or controlled, in whole or in part, by Lexar immediately prior to the formation
of Acclaim, including without limitation the patents and patent applications
listed on Exhibit B.

22.                                 “License
Term” means the period from the Effective Date until the expiration of the last
to expire of the Patents included within the Applicable Patents.

23.                                 “Licensed
Products” shall mean all devices and products covered by a Retained Patent or a
Transferred Patent.  Licensed Products
shall not include Exception Products.

24.                                 [***].

25.                                 “Micron”
shall have the meaning set forth in the initial paragraph of this Agreement.

26.                                 “NAND
Flash Memory Device” shall mean a non-volatile memory Semiconductor Device that
includes a plurality of memory cell transistors connected in series, each
having a floating gate or charge-trapping region which is electrically
programmable and electrically erasable in blocks or chunks, which device is in
the form of a discrete chip.

27.                                 “Parties”
shall mean Toshiba, Acclaim and Micron, collectively.

28.                                 “Party”
shall mean Toshiba, Acclaim or Micron.

29.                                 “Patent
Holder” shall mean Acclaim, with respect to the Acclaim Patents, and Micron,
with respect to the Retained Patents.

30.                                 “Patents”
shall mean all classes or types of patents, including original patents, design
patents, utility models, as well as divisions, reissues, reexaminations,
continuations,

 2
 

 

continuations in part, and applications for any of the
aforementioned in all countries of the world.

31.                                 “Person”
means any corporation, limited liability company or partnership, general or
limited partnership, sole proprietorship, association, joint venture,
individual in whatever capacity (including as trustee, receiver, conservator,
administrator or liquidator), governmental authority, or other entity or body,
whether domestic or foreign.

32.                                 “Retained
Patents” means all Lexar Patents that Lexar owns or controls as of the
Effective Date (the “Pre-existing Patents”), and any other Patents which are
counterparts, continuations, divisionals, continuations in part, reissues, or
reexaminations of any of the Pre-existing Patents, and all Patents entitled to
claim a priority date from any of the foregoing, which Micron or any of its
Subsidiaries now or in the future owns or controls, or as to which Micron or
any of its Subsidiaries has the right to grant licenses or accord freedom from
suit, including without limitation the patents and patent applications listed
on Exhibit C.

33.                                 [***].

34.                                 [***].

35.                                 “Semiconductor
Device” shall mean a device consisting primarily of a body or film of
Semiconductor Material having a plurality of electrodes associated therewith
(whether or not said body consists of a single Semiconductor Material or of a
multiplicity of such materials, and whether or not said body includes one or
more layers or other regions of a material or materials which are of a type
other than Semiconductor Material); and if provided as part thereof, said
device includes all Ancillary Parts.  The
term “Semiconductor Device” shall also include (i) any memory module and any
memory card (both in the meaning which is widely used in the industry), and
(ii) a printed circuit board having memory functionality sold by an entity
where each such board sold by an entity includes memory manufactured by such
entity and affixed onto such board prior to sale, and where such sale is to an
OEM customer.  Printed circuit boards
sold by an entity which do not include memory manufactured by such entity and
which are sold to end users are expressly excluded from the term Semiconductor
Device.

36.                                 “Semiconductor
Material” shall mean any material having an electrical charge carrier
concentration which increases with temperature over some temperature range; and
having a resistivity in its normal operating temperature range of between
10E(-4) and l0E11 ohm-centimeters.

37.                                 “Settlement
and Release Agreement” shall have the meaning set forth in the Recitals to this
Agreement.

38.                                 [***].

39.                                 [***].

40.                                 [***].

 3
 

 

41.                                 “Subsidiary”
shall mean a legal entity of which a Person, as of the Effective Date or at any
time during the Term, owns or controls, directly or indirectly, either of the
following (but only for so long as such ownership or control exists):

a.                                       if
such entity has shares or other securities, more than fifty percent (50%) of
the outstanding voting shares or securities entitled to vote for the election
of directors or others having similar managing authority; or

b.                                      if
such entity does not have shares or other securities, more than fifty percent
(50%) of the ownership interests that represent the right to vote for the
election of managers, directors, or others having similar managing authority or
the right to make decisions for such entity.

42.                                 “Technology”
shall mean all existing and future designs, materials, techniques, processes,
inventions, methods, applications, know-how, data, technical information,
intellectual property or other technology.

43.                                 “Toshiba”
shall have the meaning set forth in the initial paragraph of this Agreement.

44.                                 “Toshiba
Party” shall mean Toshiba, its Subsidiaries (including, for the avoidance of
doubt, FlashVision LLC and FlashPartners LLC), and each of their respective
agents, representatives, directors, employees, successors and assigns,
distributors, resellers, and other direct or indirect customers.

45.                                 “Transferred
Patents” shall have the meaning set forth in the definition of Acclaim Patents
above.

46.                                 [***].

 4
 

 

Exhibits

	
   

  	
  Exhibit A

  	
   

  	
  Acclaim Patents

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Exhibit B

  	
   

  	
  Lexar Patents

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Exhibit C

  	
   

  	
  Retained Patents

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Exhibit D

  	
   

  	
  Form of Redacted Agreement

  

 

 5

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