Document:

Exhibit 4.2

 

THE SECURITIES REPRESENTED BY
THIS INSTRUMENT HAVE BEEN ACQUIRED FOR INVESTMENT AND HAVE NOT BEEN REGISTERED
UNDER THE SECURITIES ACT OF 1933, AS AMENDED. 
SUCH SECURITIES MAY NOT BE SOLD OR TRANSFERRED IN THE ABSENCE OF SUCH
REGISTRATION OR AN OPINION OF COUNSEL SATISFACTORY TO THE ISSUER AS TO THE
AVAILABILITY OF AN EXEMPTION FROM REGISTRATION.  THE SECURITIES REPRESENTED BY THIS INSTRUMENT ARE SUBJECT TO
RESTRICTIONS ON TRANSFER, INCLUDING ANY SALE, PLEDGE OR OTHER HYPOTHECATION,
SET FORTH IN AN AGREEMENT BETWEEN THE ISSUER AND INTEL CAPITAL CORPORATION, A
COPY OF WHICH AGREEMENT MAY BE OBTAINED AT NO COST BY WRITTEN REQUEST MADE BY
THE HOLDER OF RECORD OF THIS INSTRUMENT TO THE SECRETARY OF THE COMPANY AT ITS
PRINCIPAL EXECUTIVE OFFICES.

 

STOCK RIGHTS AGREEMENT

 

This STOCK
RIGHTS AGREEMENT is dated as of September 24, 2003 (this “Agreement”)
and entered into by and between Micron Technology, Inc., a Delaware corporation
(the “Company”), and Intel Capital Corporation, a Cayman Islands
corporation (“Intel Capital”). 
All capitalized terms used but not defined herein shall have the
meanings ascribed to them in the Securities Purchase Agreement (as hereinafter
defined).

 

WHEREAS,
pursuant to a Securities Purchase Agreement, dated as of September 24, 2003
(the “Securities Purchase Agreement”), by and between the Company and
Intel Capital, the Compa­ny is issuing and selling to Intel Capital, in
consideration of the payment of four hundred and forty nine million nine
hundred and ninety nine thousand nine hundred and ninety eight dollars and five
cents ($449,999,998.05), certain stock rights, which provide Intel Capital the
right to acquire, for no additional consideration, shares of Common Stock of
the Company;

 

WHEREAS, the
Company proposes to issue to Intel Capital certain rights (the “Rights”)
to purchase up to an aggregate of 33,860,045 shares (subject to adjustment as
set forth in this Agreement) of Common Stock (the shares of Common Stock and
other securities issuable upon exercise of the Rights being referred to herein
as the “Rights Shares”);

 

WHEREAS, the
term “Rights” hereunder shall also refer to any Additional Adjustment
Rights (as defined in the Securities Purchase Agreement), if any, issued by the
Company pursuant to the Securities Purchase Agreement; and

 

WHEREAS, the
Company and Intel Capital are concurrently entering into a Securities Rights
and Restrictions Agreement, dated as of the date hereof (the “Rights and
Restrictions Agreement”), pursuant to which the Company and Intel Capital have
agreed, among other things, to certain rights and restrictions with respect to
the transfer of the Rights and Rights Shares.

 

NOW,
THEREFORE, in consideration of the premises and the mutual agreements herein
set forth, the parties hereto agree as follows:

 

 

SECTION 1. Rights
Certificates.  The Company will
issue and deliver to Intel Capital a certificate or certificates evidencing the
Rights (the “Rights Certificates”) pursuant to and in accordance with
the terms of the Securities Purchase Agreement.  Such certificate or certificates shall be substantially in the
form set forth as Exhibit A attached hereto.  Rights Certificates shall be dated the date of issuance by the
Company.

 

SECTION 2. Execution
of Rights Certificates.  Rights
Certificates shall be signed on behalf of the Company by its Chief Executive
Officer, President or a Vice President and attested by its Secretary or an
Assistant Secretary.

 

SECTION 3. Registration.  The Company shall number and register the
Rights Certificates in a register (the “Rights Register”) as they are
issued.  The Company may deem and treat
the registered holder(s) from time to time of the Rights Certificates (the “Holders”)
as the absolute owner(s) thereof (notwithstanding any notation of ownership or
other writing thereon made by anyone) for all purposes and shall not be
affected by any notice to the contrary. 
The Rights shall be registered initially in such name or names as Intel
Capital shall designate.

 

SECTION 4. Restrictions
on Transfer; Registration of Transfers and Exchanges.  Subject to any applicable conditions to
transfer contained in the Securities Purchase Agreement or the Rights and
Restrictions Agreement, the Company shall from time to time register the
transfer of any outstanding Rights Certificates in the Rights Register to be
maintained by the Company upon surrender of the Rights Certificates accompanied
by a written instrument or instruments of transfer in form reasonably
satisfactory to the Company, duly executed by the registered holders thereof, the
duly appointed legal representative thereof or a duly authorized attorney.  Upon any such registration of transfer, a
new Rights Certificate shall be issued to the transferee holder(s) and the
surrendered Rights Certificate shall be canceled and disposed of by the
Company.

 

Except as
provided in the immediately following sentence, no person or entity holding
Rights may transfer, sell, assign, devise or bequeath any of such holder’s
interest in his, her or its Rights, and the Company shall not register the
transfer of such Rights, whether by sale, assignment, gift, devise, bequest,
appointment or otherwise, except to a Permitted Transferee (as defined below)
of such holder.  Upon the transfer by
any holder of a Right to a person or entity who is not a Permitted Transferee,
then such Right shall automatically be exchanged or converted for shares of
Common Stock at the then effective Exchange Ratio.  For purposes of this Section 4, the term “Permitted Transferee”
shall mean (i) the Company, (ii) a Qualified Subsidiary (provided that if at
any time such Qualified Subsidiary ceases to be a Qualified Subsidiary such
Rights will automatically convert into Common Stock), (iii) Intel Capital or
(iv) Intel Corporation, a Delaware corporation and parent of Intel Capital.  Notwithstanding anything to the contrary set
forth herein, the transfer agent shall not be required to register the transfer
of such Rights or the Common Stock into which they are automatically exchanged
unless concurrently with such transfer the certificate representing such Rights
to be so transferred shall be surrendered and exchanged for a certificate
representing the applicable number of shares of Common Stock into which such
Rights are automatically exchanged by virtue of such transfer.

 

Subject to
Section 4.10 of the Securities Purchase Agreement, nothing in this Section 4
shall be construed to prohibit Hedging Transactions (as defined in the Rights
and Restrictions Agreement) with respect to securities of Micron provided that
such transactions do not result in

 

2

 

non-compliance with the
foregoing restrictions insofar such provisions relate to, and are limited in
their application to, the Transaction Related Securities (as defined in the
Rights and Restrictions Agreement).

 

SECTION 5. Exercise
of Rights.  Subject to the terms of
this Agreement, each holder of a Rights Certificate shall have the right, which
may be exercised commencing the date hereof and until 5:00 p.m., California
time, on December 31, 2063 (the “Expiration Date”) to receive from the
Company the number of fully paid and nonassessable Rights Shares (and such
other consideration) which the holder may at the time be entitled to receive on
exercise of such Rights.  Any Rights not
exercised prior to 5:00 p.m., California time, on the Expiration Date shall
become void and all rights thereunder and all rights in respect thereof under
this Agreement shall cease as of such time. 
The amounts payable to the Company under the Securities Purchase
Agreement shall be the exercise price of the Rights, and no additional
consideration is payable upon exercise of the Rights.

 

Rights may be
exercised upon surrender to the Company at its office designated for such
purpose (as provided in Section 12 hereof) of the Rights Certificate or
Certificates to be exercised with the exercise notice attached thereto duly
filled in and signed.

 

Subject to the
provisions of Section 7 hereof, upon such surrender of Rights Certificates in
accordance with the terms hereof, the Company shall issue and cause to be
delivered, as promptly as practicable, to or upon the written order of the
holder and in such name or names as such holder may designate a certificate or
certificates for the number of full Rights Shares issuable upon the exercise of
such Rights (and such other consideration as may be deliverable upon exercise
of such Rights) and cash for fractional Rights Shares as provided in Section 6
hereof.  The certificate or certificates
for such Rights Shares shall be deemed to have been issued and the person so
named therein shall be deemed to have become a holder of record of such Rights
Shares as of the date of the surrender of such Rights, irrespective of the date
of delivery of such certificate or certificates for Rights Shares (the “Exercise
Date”).

 

Each Rights
Certificate shall be exercisable, at the election of the holder thereof, either
in full or from time to time in part. 
In the event that a Rights Certificate is exercised in respect of fewer
than all of the Rights Shares issuable on such exercise at any time prior to
the date of expiration of the Rights, a new certificate evidencing the
remaining Rights will be issued and delivered pursuant to the provisions of
this Section 5 and Section 2 hereof.

 

All Rights Certificates
surrendered upon exercise of Rights shall be canceled and disposed of by the
Company.  The Company shall keep copies
of this Agreement and any notices given or received hereunder available for
inspection by the holders during normal business hours at its office.

 

Notwithstanding
the above, Rights may not be exercised for Common Stock unless and until the
holder shall submit to the Company either evidence of compliance with the
filing requirements of the HSR Act or a certificate of an officer of the holder
to the effect that the acquisition of Common Stock upon exercise of the Rights
does not require any filing under the HSR Act.

 

3

 

In the event
that a Qualified Subsidiary that is a holder of Rights ceases at any time to be
a Qualified Subsidiary, the Rights so held shall represent only the right to
receive the Common Stock in to which they are exchangeable, and the Company
shall deliver the shares of Common Stock issuable upon exchange thereof upon
(i) surrender of the Rights Certificates to the Company, (ii) if required, the
holder furnishing appropriate endorsements and transfer documents, and (iii) if
required by Section 7, payment of all transfer and similar taxes if the shares
of Common Stock are not being issued to the holder.

 

SECTION 6. Number
of Rights; Adjustments to Rights; Dividends; Fractional Rights Shares.

 

(a)           Exchange Ratio. Each Right
represents the right to receive one share of Common Stock, as adjusted in the
manner provided below (“Exchange Ratio”).

 

(b)           Fractional Shares. No
fractional shares of Common Stock shall be issued upon the conversion, exchange
or exercise of Rights.  In lieu of any
fractional shares to which the holder would otherwise be entitled, the Company
shall pay cash equal to such fraction multiplied by the then fair market value
of one share of Common Stock, as determined in good faith by the Board of
Directors.  The Company shall, as soon
as practicable thereafter, cause its transfer agent to issue and deliver at
such office to such holder of Rights Certificates or to such holder’s nominee
or nominees, a certificate or certificates for the number of shares of Common
Stock to which such holder or such holder’s nominee shall be entitled as
aforesaid, together with cash in lieu of any fraction of a share.  The person or persons entitled to receive
the shares of Common Stock issuable upon conversion, exchange or exercise of
Rights shall be treated for all purposes as the record holder or holders of
such shares of Common Stock on the Exercise Date.

 

(c)           Adjustment for Stock Splits, etc.  In case of any subdivision (by stock split,
stock dividend or otherwise) of the Common Stock, the Exchange Ratio shall be
proportionately increased, and conversely in the case of combination of the
Common Stock (by reverse stock split or otherwise), the Exchange Ratio shall be
proportionately decreased, with such adjustment to the Exchange Ratio to be
effective immediately after the opening of business on the day following the
day which such subdivision or combination, as the case may be, becomes
effective.  In case of any
reorganization, reclassification or change of shares of the Common Stock (other
than a change in par value or from par value to no par value as a result of a
subdivision or combination), or in the case of any consolidation of the Company
with one or more corporations or a merger of the Company with another
corporation (other than a consolidation or merger in which the Company is the
resulting or surviving corporation and which does not result in any
reclassification or change of outstanding shares of Common Stock), provision
shall be made so that each holder of a Right shall have the right at any time
thereafter as nearly as practicable, so long as the exercise or exchange rights
hereunder with respect thereto would exist had such event not occurred, to
exercise or exchange such Right into the kind and amount of shares of stock and
other securities and properties (including cash) receivable upon such
reorganization, reclassification, change, consolidation or merger by a holder
of the number of shares of Common Stock into which the Rights might have been
converted immediately prior to such reorganization, reclassification, change,
consolidation or merger.  In the event
of such a reorganization, reclassification, change, consolidation or merger,
effective provision shall be made in the certificate of incorporation of the
resulting or surviving corporation or otherwise for the

 

4

 

protection of the conversion,
exercise or exchange rights of the holders of Rights that shall be applicable,
as nearly as reasonably may be, to any such other shares of stock and other
securities and property (including cash) deliverable upon exercise of the
Rights that might have been issued immediately prior to such event.

 

(d)           Dividends.  In the event that the Company declares a
dividend or other distribution in respect of its Common Stock (other than a
dividend payable in shares of Common Stock), the holders of Rights hereunder
shall be entitled to receive such dividend or distribution as if the Rights had
been exercised or converted immediately prior to the record date for such
dividend or distribution.

 

(e)           Liquidation.  In the event that the Company liquidates,
dissolves or winds-up, the holders of Rights hereunder shall be entitled to
receive such proceeds, securities or other property as if the Rights had been
exercised or converted immediately prior to the date on which such liquidation,
dissolution or winding-up is to take place.

 

(f)            Rights Certificates Following
Adjustments.  Irrespective of any
adjustments in the number or kind of shares issuable upon the exercise or
conversion of the Rights, Rights theretofore or thereafter issued may continue
to express the same number and kind of shares as are stated in the Rights
Certificate initially issuable pursuant to this Agreement.

 

SECTION 7. Payment
of Taxes.  The Company will pay all
documentary stamp taxes and other governmental charges (excluding all foreign,
federal or state income, franchise, property, estate, inheritance, gift or
similar taxes) in connection with the issuance or delivery of the Rights
hereunder, as well as all such taxes attributable to the initial issuance or
delivery of Rights Shares upon the exercise or exchange of Rights.  The Company shall not, however, be required
to pay any tax that may be payable in respect of any subsequent transfer of the
Rights or any transfer involved in the issuance and delivery of Rights Shares
in a name other than that in which the Rights to which such issuance relates
were registered, and, if any such tax would otherwise be payable by the
Company, no such issuance or delivery shall be made unless and until the person
requesting such issuance has paid to the Company the amount of any such tax, or
it is established to the reasonable satisfaction of the Company that any such
tax has been paid.

 

SECTION 8. No
Redemption.  The Rights shall not be
redeemable.

 

SECTION 9. Mutilated
or Missing Rights Certificates.  If
a mutilated Rights Certificate is surrendered to the Company, or if the holder
of a Rights Certificate claims and submits an affidavit or other evidence
satisfactory to the Company to the effect that the Rights Certificate has been
lost, destroyed or wrongfully taken, the Company shall issue a replacement
Rights Certificate.  If required by the
Company, such holder must provide an indemnity bond, or other form of
indemnity, sufficient in the judgment of the Company to protect the Company
from any loss which it may suffer if a Rights Certificate is replaced.  If Intel Capital or any other institutional
holder (or nominee thereof) is the owner of any such lost, stolen or destroyed
Rights Certificate, then the affidavit of an authorized officer of such owner,
setting forth the fact of loss, theft or destruction and of its ownership of
the Rights Certificate at the time of such loss, theft or destruction shall be
accepted as satisfactory evidence thereof, and no further indemnity shall be
required as a condition to the execution and delivery of a new Rights
Certificate other than the

 

5

 

unsecured written agreement of
such owner to indemnify the Company from any loss which it may suffer if a
Rights Certificate is replaced.

 

SECTION 10. Reservation
of Rights Shares.  The Company shall
at all times reserve and keep available, free from preemptive rights, out of
the aggregate of its authorized but unissued Common Stock, for the purpose of
enabling it to satisfy any obligation to issue Rights Shares upon exercise or
exchange of Rights, the maximum number of shares of Common Stock which may then
be deliverable upon the exercise or exchange of all outstanding Rights.  To the extent that the Rights Shares are listed
on any national securities exchange, the Company shall use commercially
reasonable efforts to cause all such securities issued or reserved for issuance
to be listed on such exchange upon official notice of issuance.

 

The Company
or, if appointed, the transfer agent for the Common Stock and each transfer
agent for any shares of the Company’s capital stock issuable upon the exercise
or exchange of any of the Rights (collectively, the “Transfer Agent”)
will be irrevocably authorized and directed at all times to reserve such number
of authorized shares as shall be required for such purpose.  The Company shall keep a copy of this
Agreement on file with any such Transfer Agent.  The Company will supply any such Transfer Agent with duly
executed certificates for such purposes and will provide or otherwise make
available all other consideration that may be deliverable upon exercise or
exchange of the Rights.  The Company
will furnish any such Transfer Agent a copy of all notices of adjustments and
certificates related thereto, transmitted to each holder pursuant to Section 11
or Section 12 hereof.

 

The Company
covenants that all Rights Shares and other capital stock issued upon exercise
of Rights will, upon issuance thereof, be validly authorized and issued, fully
paid, nonassessable, free of preemptive rights and free, subject to Section 7
hereof, from all taxes, liens, charges and security interests with respect to
the issue thereof.

 

SECTION 11. Notices
to Rights Holders.  Upon any event
affecting the number of shares of Common Stock receivable upon exercise or
exchange of Rights, the Company shall promptly thereafter give to each of the
holders at its address appearing on the Rights Register written notice of such
events and the effect thereof on the Rights and the Rights Shares in accordance
with the provisions of this Section 11. 
Where appropriate, such notice may be given in advance and included as a
part of the notice required to be mailed under the other provisions of this
Section 11.  The Company shall also
provide notice to the holders of Rights of record dates or events with respect
to which notice is given to other stockholders of the Company.  Such notice shall be given at the same time
as notice is given to other
stockholders.  The
failure to give the notice required by this Section 11 or any defect therein
shall not affect the legality or validity of any distribution, right, option,
rights, consolidation, merger, conveyance, transfer, dissolution, liquidation
or winding up or the vote on any action.

 

Nothing
contained in this Agreement or in any Rights Certificate shall be construed as
conferring upon the holders (prior to the exercise or exchange of such Rights)
the right to vote, to consent or to receive notice as a stockholder in respect
of the meetings of stockholders or the election of Directors of the Company or
any other matter, or any rights whatsoever as stockholders of the Company; provided,
however, that nothing in the foregoing provision is intended to
detract from any rights explicitly granted to any holder hereunder.

 

6

 

SECTION 12. Notices
to the Company and Rights Holders. Except as may be otherwise provided
herein, all notices, requests, waivers and other communications made pursuant
to this Agreement shall be in writing and shall be delivered to the other party
(a) in person; (b) by facsimile to the address and number set forth below, when
promptly followed up by another of the delivery methods permitted by this
Section 12; (c) by U.S. mail, registered or certified, return receipt
requested, postage prepaid and addressed to the other party as set forth below;
or (d) by a national-recognized overnight delivery service that keeps records
of deliveries and attempted deliveries (such as FedEx), postage prepaid,
addressed to the parties as set forth below with next-business-day delivery
guaranteed, provided that the sending party receives a confirmation of delivery
from the delivery service provider.

 

	
  To Intel
  Capital:

  	
   

  	
  To the
  Company:

  
	
   

  	
   

  	
   

  
	
  Intel Capital Corporation

  	
   

  	
  Micron Technology, Inc.

  
	
  c/o Intel Corporation

  	
   

  	
  8000 South Federal Way

  
	
  Attn: Intel Capital Portfolio

  	
   

  	
  P.O. Box 6

  
	
  Manager

  	
   

  	
  Boise, Idaho  83716-9632

  
	
  2200 Mission College Blvd., M/S

  	
   

  	
  Attn:  Roderic W. Lewis, Esq.

  
	
  RN6-46

  	
   

  	
   

  
	
  Santa Clara, California  95052

  	
   

  	
  Fax Number: (208) 368-4540

  
	
   

  	
   

  	
   

  
	
  Fax Number: (408) 765-6038

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  with copies by e-mail to:

  	
   

  	
  with a copy to:

  
	
   

  	
   

  	
   

  
	
  portfolio.manager@intel.com

  	
   

  	
  Wilson Sonsini Goodrich &

  
	
   

  	
   

  	
  Rosati

  
	
   

  	
   

  	
  650 Page Mill Road

  
	
   

  	
   

  	
  Palo Alto, California  94304

  
	
   

  	
   

  	
  Attn:  John A. Fore, Esq.

  
	
   

  	
   

  	
  Fax Number: (650) 493-6811

  

 

A party may
change or supplement the addresses given above, or designate additional
addresses, for purposes of this Section 12 by giving the other party written
notice of the new address in the manner set forth above.

 

SECTION 13. Successors.  All the covenants and provisions of this
Agreement by or for the benefit of the Company shall bind and inure to the
benefit of its respective successors and assigns hereunder.

 

SECTION 14. Termination.  This Agreement shall terminate on the date
on which no Rights remain outstanding; provided,
however, that notwithstanding any prior termination of this
Agreement pursuant to this Section 14, if Additional Adjustment Rights are
issued to Intel Capital or its Affiliates, this Agreement shall become
effective as of the date of the issuance of such Additional Adjustment Rights
with respect to such Additional Adjustment Rights, and this Agreement shall
terminate on the date on which no Additional Adjustment Rights remain
outstanding.

 

7

 

SECTION 15. Governing
Law. This Agreement shall be governed in all respects by and construed in
accordance with the laws of the State of Delaware without regard to provisions
regarding choice of laws.

 

SECTION 16. Benefits
of This Agreement; No Impairment. 
Nothing in this Agreement shall be construed to give to any person or
corporation other than the Company and the holders any legal or equitable
right, remedy or claim under this Agreement; but this Agreement shall be for
the sole and exclusive benefit of the Company and the holders.  The Company shall not take any action which
would have the effect of materially impairing the rights, privileges and
preferences of the holders of the Rights set forth herein.

 

SECTION 17. Counterparts.
This Agreement may be executed in any number of counterparts and each of such
counterparts shall for all purposes be deemed to be an original, and all such
counterparts shall together constitute but one and the same instrument.

 

SECTION 18. Amendments
and Waivers. No provision of this Agreement may be amended or waived except
by an instrument in writing signed by the party sought to be bound; provided, that
any amendment or waiver sought from the holders of any provision of this
Agreement which affects holders generally shall be given by holders of at least
a majority of the Rights outstanding (or, in the case of amendments or waivers
affecting holders of Rights Shares generally, by holders of at least a majority
of the Rights and Rights Shares, taken as one class, with each Right and each
Rights Share representing the right to one vote).  Any amendment or waiver so given shall be binding on all holders.  No failure or delay by any party in
exercising any right or remedy hereunder shall operate as a waiver thereof, and
a waiver of a particular right or remedy on one occasion shall not be deemed a
waiver of any other right or remedy or a waiver of the same right or remedy on
any subsequent occasion.

 

SECTION 19. Legal
Fees.  In the event of any action at
law, suit in equity or arbitration proceeding in relation to this Agreement or
any units or securities of the Company issued or to be issued, the prevailing
party, shall be paid by the other party a reasonable sum for attorney’s fees
and expenses for such prevailing party.

 

SECTION 20. Dispute
Resolution.  The parties agree to
negotiate in good faith to resolve any dispute between them regarding this
Agreement.  If the negotiations do not
resolve the dispute to the reasonable satisfaction of both parties, then each
party shall nominate one senior officer of the rank of Vice President or higher
as its representative.  These
representatives shall, within thirty (30) days of a written request by either
party to call such a meeting, meet in person and alone (except for one
assistant for each party) and shall attempt in good faith to resolve the
dispute.  If the disputes cannot be
resolved by such senior managers in such meeting, the parties agree that they
shall, if requested in writing by either party, meet within thirty (30) days
after such written notification for one day with an impartial mediator and
consider dispute resolution alternatives other than litigation.  If an alternative method of dispute
resolution is not agreed upon within thirty (30) days after the one day
mediation, either party may begin litigation proceedings.  This procedure shall be a prerequisite
before taking any additional action hereunder.

 

8

 

SECTION 21. Certain
Definitions.

 

For purposes
of this Agreement the following terms shall have the meanings set forth below.

 

Qualified Subsidiary.  Qualified Subsidiary shall have the meaning
ascribed to such term in the Rights and Restrictions Agreement.

 

Securities Purchase Agreement.  Securities Purchase Agreement shall mean
that certain Securities Purchase Agreement, dated September 24, 2003, as
amended from time to time, by and between the Company and Intel Capital.

 

Securities Rights and Restrictions Agreement.  Securities Rights and Restrictions Agreement
shall mean that certain Securities Rights and Restrictions Agreement, dated as
of September 24, 2003, as amended from time to time, by and between the Company
and Intel Capital.

 

9

 

IN WITNESS
WHEREOF, the parties hereto have caused this Agreement to be duly executed as
of the day and year first above written.

 

	
  INTEL CAPITAL CORPORATION

  	
  MICRON TECHNOLOGY, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ Arvind Sodhani

  	
   

  	
  By:

  	
  /s/ W.G. Stover, Jr.

  	
   

  
	
   

  	
  Name: Arvind
  Sodhani

  	
   

  	
  Name: W.G.
  Stover, Jr.

  
	
   

  	
  Title: Vice
  President and Treasurer

  	
   

  	
  Title:

  	
  Vice
  President of Finance and

  
	
   

  	
   

  	
   

  	
   

  	
  Chief
  Financial Officer

  
								

 

 

{Signature Page to Stock Rights Agreement}

 

10

 

EXHIBIT A

 

[Form of Rights Certificate]

 

THE SECURITIES REPRESENTED BY
THIS CERTIFICATE HAVE BEEN ACQUIRED FOR INVESTMENT AND HAVE NOT BEEN REGISTERED
UNDER THE SECURITIES ACT OF 1933.  SUCH
SECURITIES MAY NOT BE SOLD OR TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION
OR AN OPINION OF COUNSEL SATISFACTORY TO THE ISSUER AS TO THE AVAILABILITY OF
AN EXEMPTION FROM REGISTRATION. THE SECURITIES REPRESENTED BY THIS INSTRUMENT
ARE SUBJECT TO RESTRICTIONS ON TRANSFER, INCLUDING ANY SALE, PLEDGE OR OTHER HYPOTHECATION,
SET FORTH IN AN AGREEMENT BETWEEN THE ISSUER AND INTEL CORPORATION, A COPY OF
WHICH AGREEMENT MAY BE OBTAINED AT NO COST BY WRITTEN REQUEST MADE BY THE
HOLDER OF RECORD OF THIS INSTRUMENT TO THE SECRETARY OF THE COMPANY AT ITS
PRINCIPAL EXECUTIVE OFFICES.

 

 

	
  No. R1

  	
   

  	
  33,860,045 Rights

  

 

 

RIGHTS CERTIFICATE

 

MICRON TECHNOLOGY, INC.

 

 

This Rights
Certificate certifies that Intel Capital Corporation, or registered assigns, is
the registered holder of the number of Rights (the “Rights”) set forth above
to receive Common Stock, $.10 par value per share (the “Common Stock”),
of Micron Technology, Inc., a Delaware corporation (the “Company”).  Each Right entitles the holder upon exercise
or exchange to receive from the Company one fully paid and nonassessable share
(subject to adjustment as provided in the Rights Agreement referred to below)
of Common Stock (a “Rights Share”), upon surrender of this Rights
Certificate at the office of the Company designated for such purpose, but only
subject to the conditions set forth herein and in the Rights Agreement referred
to below.  The number of Rights Shares
issuable upon exercise or exchange of the Rights are subject to adjustment upon
the occurrence of certain events, as set forth in the Rights Agreement.  The Rights are exercisable or exchangeable
at any time prior to 5:00 p.m., California time, on December 31, 2063.

 

A-1

 

The Rights
evidenced by this Rights Certificate are part of a duly authorized issue of Rights,
and are issued or to be issued pursuant to a Rights Agreement dated as of
September 24, 2003 (the “Rights Agreement”), duly executed and delivered
by the Company, which Rights Agreement is hereby 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 Company and the holders (the words “holders” or “holder”
meaning the registered holders or registered holder) of the Rights.  Capitalized terms used herein and not
defined shall have the meanings ascribed to them in the Rights Agreement.  A copy of the Rights Agreement may be
obtained by the holder hereof upon written request to the Company.

 

The holder of
Rights evidenced by this Rights Certificate may convert, exercise or exchange
such Rights under and pursuant to the terms and conditions of the Rights
Agreement by surrendering this Rights Certificate, with the form of notice of
exercise properly completed and executed at the office of the Company
designated for such purpose. 
Notwithstanding the above, Rights may not be converted, exercised or
exchanged for Common Stock unless and until the holder shall submit to the
Company either evidence of compliance with the filing requirements of the HSR
Act or a certificate of an officer of the holder to the effect that the
acquisition of Common Stock upon exercise of the Rights does not require any
filing under the HSR Act.

 

If upon any
exercise of Rights evidenced hereby the number of Rights exercised shall be
less than the total number of Rights evidenced hereby, the Company shall issue
to the holder hereof or its registered assignee a new Rights Certificate
evidencing the number of Rights not exercised.

 

Upon the
transfer by any holder of a Right to a person or entity who is not a Permitted
Transferee, then such Right shall automatically be exchanged or converted for
shares of Common Stock at the then effective Exchange Ratio.

 

The Rights
Agreement provides that upon the occurrence of certain events the number of
Rights Shares issuable upon exercise or exchange of the Rights set forth on the
face hereof may, subject to certain conditions, be adjusted.

 

The holder
hereof will have certain registration rights and other rights and obligations
with respect to the Rights Shares as provided in the Securities Rights and
Restrictions Agreement, dated as of September 24, 2003, by and between the
Company and the persons party thereto (the “Rights and Restrictions
Agreement”).  Copies of the Rights
and Restrictions Agreement may be obtained by the holder hereof upon written
request to the Company.

 

Rights
Certificates, when surrendered at the office of the Company 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 Rights Agreement, but without payment of any
service charge, for another Rights Certificate or Rights Certificates of like
tenor and evidencing in the aggregate a like number of Rights.

 

A-2

 

Subject to the
terms and conditions of the Rights Agreement, upon due presentation for
registration of transfer of this Rights Certificate at the office of the
Company, a new Rights Certificate or Rights Certificates of like tenor and
evidencing in the aggregate a like number of Rights shall be issued to the
transferee(s) in exchange for this Rights Certificate, subject to the
limitations provided in the Agreement, without charge except for any tax or
other governmental charge imposed in connection therewith.

 

The Company
may deem and treat the registered holder(s) hereof as the absolute owner(s) of
this Rights Certificate (notwithstanding any notation of ownership or other
writing hereon made by anyone), for the purpose of any exercise hereof and of
any distribution to the holder hereof, and for all other purposes, and the
Company shall not be affected by any notice to the contrary.  Neither the Rights nor this Rights
Certificate entitles any holder hereof to any rights of a stockholder of the
Company, except as specifically provided in the Rights Agreement with respect
to dividends and distributions to stockholders.

 

IN WITNESS
WHEREOF, Micron Technology, Inc. has caused this Rights Certificate to be
signed by its Chairman of the Board, Chief Executive Officer, President or a
Vice President and by its Secretary or an Assistant Secretary and has caused
its corporate seal to be affixed hereunto or imprinted hereon.

 

 

	
  Dated:  September 24, 2003

  	
   

  
	
   

  	
   

  
	
   

  	
  MICRON
  TECHNOLOGY, INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
  Steven R.
  Appleton

  	
   

  
	
   

  	
  Title:

  	
  Chairman,
  Chief Executive Officer and President

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
  Roderic W.
  Lewis

  	
   

  
	
   

  	
  Title:

  	
  Vice
  President of Legal Affairs 

  General Counsel and Corporate Secretary

  	
   

  

 

A-3

 

FORM OF NOTICE OF EXERCISE OR EXCHANGE

 

[To Be Executed Upon Exercise or Exchange of Rights]

 

The
undersigned hereby irrevocably elects to exercise the right, represented by
this Rights Certificate, to receive
                
shares of Common Stock in accordance with the terms hereof.  Evidence of compliance with or exemption
from the requirements of the HSR Act must be provided.

 

The undersigned requests that a
certificate for such shares be registered in the name
of                         ,
whose address is                                       
and that such shares be delivered to                                 ,
whose address is                                           .

 

If said number of shares is
less than all of the shares of Common Stock receivable hereunder, the
undersigned requests that a new Rights Certificate representing the remaining
balance of such shares be registered in the name of                        ,
whose address is
                                  ,
and that such Rights Certificate be delivered to
                                 ,
whose address is
                                            .

 

	
   

  	
  Signature(s):

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  NOTE:

  	
  The above
  signature(s) must correspond with the name written upon the face of this
  Rights Certificate in every particular, without alteration or enlarge­ment or
  any change whatever.  If the Rights
  are held of record by two or more joint owners, all such owners must sign.

  
	
   

  	
   

  
	
  Dated: 

  	
   

  	
   

  	
   

  
							

 

B-1

 

FORM OF ASSIGNMENT

 

 

[To be signed
only upon assignment of Rights Certificate]

 

FOR VALUE
RECEIVED,
                                             
hereby sells, assigns and transfers unto
                                             
whose address is
                                                
and whose social security number or other identifying number is
                                                        ,
the within Rights Certificate, together with all right, title and interest
therein and to the Rights represented thereby, and does hereby irrevocably
constitute and appoint , attorney, to transfer said Rights Certificate on the
books of the within-named Company, with full power of substitution in the
premises.

 

	
   

  	
  Signature(s):

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  NOTE:

  	
  The above
  signature(s) must correspond with the name written upon the face of this
  Rights Certificate in every partic­ular, without alteration or enlargement or
  any change whatever. If the Rights are held of record by two or more joint
  own­ers, all such owners must sign.

  
	
   

  	
   

  
	
  Dated:

  	
   

  	
   

  	
   

  
							

 

B-2Exhibit 10.1

 

BUSINESS AGREEMENT

 

 

BY AND BETWEEN

 

 

INTEL CORPORATION

 

a Delaware Corporation

 

 

and

 

 

MICRON TECHNOLOGY, INC.

 

a Delaware Corporation

 

 

Dated as of 24 September, 2003

 

CERTAIN
INFORMATION IN THIS EXHIBIT HAS BEEN OMITTED AND FILED SEPARATELY WITH THE
COMMISSION.  CONFIDENTIAL TREATEMENT HAS
BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS.

 

1

 

BUSINESS AGREEMENT

 

NOTE:  Information in this document marked with an “[*]” has been
omitted and filed separately with the Commission.  Confidential treatment has been requested with respect to the
omitted portions.

 

This Agreement (the “Agreement” or the “Business
Agreement”) is entered into as of the 24th day of September, 2003, by and
between MICRON Technology, Inc., a Delaware corporation, having a place of
business at 8000 S. Federal Way, Boise, ID 83716-9632  (hereinafter
“MICRON”), and INTEL Corporation, a Delaware corporation, having its principal
place of business at 2200 Mission College Blvd., Santa Clara, CA 95052
(hereinafter “INTEL”).  MICRON and INTEL
are sometimes referred to as a “Party” and collectively referred to as the
“Parties”.

 

RECITALS

 

WHEREAS,
INTEL
desires to make a significant investment in certain MICRON securities subject
to the terms and conditions set forth in certain investment agreements; and

 

WHEREAS, MICRON desires to use
the proceeds from the INTEL investment for the purposes set forth in this
Agreement;

 

NOW, THEREFORE, for good and valuable
consideration, the receipt and sufficiency of which is acknowledged, the
Parties agree as follows:

 

DEFINITIONS

 

For purposes
of this Agreement only, the following terms shall have the following meanings:

 

“Affiliate” means
with respect to a specified person, a person that directly or indirectly,
through one or more intermediaries, controls, is controlled by or is under
common control with, such person.

 

“Call
on Capacity” means INTEL’s right (or that of a permitted
designee hereunder) to purchase a portion of MICRON’s Output of Products as set
forth in Section 6.1 of this Agreement.

 

“Capacity” means
MICRON’s capacity to manufacture, assemble and test discrete devices including
such capacity of its Subsidiaries and Affiliates
and [*] of such capacity of TECH Semiconductor Singapore Pte. Ltd.

 

“Capital
Expenditures” means the amount paid for the
acquisition of equipment and facilities computed from information presented in
MICRON’s financial statements periodically filed with the U.S. Securities and
Exchange Commission as the sum of 1) expenditures for property, plant and
equipment and 2) payments on equipment contracts.

 

[*]  Certain information on this page has been omitted and filed
separately with the Commission. 
Confidential treatement has been requested with respect to the omitted
portions.

 

2

 

“Change of Control” means a Change in Control as defined in the
Securities Rights Agreement.

 

“Closing” means the
date and time specified in the Securities Purchase Agreement.

 

“Commercialize” means
Products available for sale by MICRON.

 

“Common Stock” means
the common stock, par value $0.10 per share, of MICRON.

 

“Corporate Purchase
Agreement” or “CPA”
means that agreement titled “Purchase
Agreement – Goods”  of
even date herewith (or such other date as may be set forth therein) entered
into between MICRON Semiconductor Products, Inc. (“MSP”), a Subsidiary of
MICRON, and INTEL, as such agreement may be amended from time to time, pursuant
to which MSP will sell and INTEL will purchase Products.  The CPA is designated by INTEL as # 52889.

 

“DRAM” means
a Product with a principle function of memory storage that is a dynamic random
access memory.

 

“Derivative Products”
means Products that have undergone a change with respect to module type, bus
width, density, package types, speed/frequency and other changes of similar
scope.

 

“DDR2 Products” means
DRAM Products that substantially comply with the memory device standards
established for DDR2 products by JEDEC.

 

“Effective Date”
means the first date set forth above.

 

“Finished Goods Inventory Measurement Date”
means each date on which MICRON measures its finished goods inventory of DDR2
Product.

 

“Inventory Limitation”
means the suspension or limitation of MICRON’s volume production of DDR2 pursuant
to Section 2.3 hereof.

 

“JEDEC” means the
standards setting body known as Joint Electron Device Engineering Council or
any successor thereof.

 

“Major DRAM Supplier”
means an entity having an average world-wide DRAM market segment share of
greater than ten percent (10%), measured in DRAM revenue, as determined and
reported by International Data Corporation for the six (6) month period
immediately preceding the month in which MICRON initiates a development project
pursuant to Section 4.1 hereof.

 

“Output”
means MICRON’s total production
of discrete components, other than CMOS imagers and NOR flash devices, received
into finished goods (excluding off-spec devices received into finished goods
for MICRON’s SpecTek division) for a given month expressed in

 

3

 

terms of “equivalent units” of
256Mbit devices, and
with respect to projections of Output as reasonably adjusted by MICRON to
account for disruptions in production reasonably likely to occur.  MICRON’s Output for a given month
shall include [*] of the monthly production of discrete components from TECH
Semiconductor Singapore Pte. Ltd.

 

“Percentage Call on Capacity”
means as of each March 1st and September 1st, the
percentage derived by dividing (A) by (B), where (A) equals the total number of
Rights owned by INTEL on such date and (B) equals the total number of shares of
Common Stock of MICRON as measured on a “fully diluted” and “as converted”
basis as of such date.

 

“Product”
means any product developed and/or manufactured by MICRON during the term of
this Agreement other than (a) CMOS imagers, (b) NOR flash, and (c) for the
avoidance of doubt, any other product purchased from third parties by Crucial
Technology for purposes of resale to retail customers.

 

“Product Family” means Products defined by memory type and density.  Examples of separate Product Families
include:  256Mb SDRAM, 64Mb PSDRAM and
128Mb DDR.

 

“Reasonable Efforts”
means, in regard to Sections 4.2., 4.3 and 4.4 of this Agreement, the allocation
of resources consistent with the level of resources allocated by MICRON for
similar high-priority projects of like complexity.

 

“Rights” means the securities issuable pursuant
to the Stock Rights Agreement having the rights, preferences, privileges and restrictions
defined therein.

 

“Sample” means,
as to any specific part type, a device having no known material deviations from
the datasheet specifications and which is available for sending to a third
party but which carries no representation or warranty of any kind, including
any representation or warranty, express or implied, of merchantability or
fitness for a particular purpose.  The
Parties acknowledge and agree that Samples have not been subjected to MICRON’s quality
assurance or qualification processes.

 

“Securities Purchase Agreement”
means that agreement titled Securities
Purchase Agreement of even date herewith entered into between MICRON
and INTEL Capital Corporation, a subsidiary of INTEL (“INTEL CAPITAL”), as such
agreement may be amended from time to time.

 

“Securities Rights Agreement”
means that agreement titled Securities
Rights and Restrictions Agreement of even date herewith entered into
between MICRON and INTEL CAPITAL, as such agreement may be amended from time to
time.

 

“Stock Rights Agreement”
means that agreement titled Stock Rights
Agreement of even date herewith entered into between MICRON and
INTEL CAPITAL, as such agreement may be amended from time to time.

 

[*]  Certain information on this page has been omitted and filed
separately with the Commission. 
Confidential treatement has been requested with respect to the omitted
portions.

 

4

 

“Subsidiary” of a
person means any corporation or other entity of which the securities or other ownership
interest having ordinary voting power to elect a majority of the board of
directors or other persons performing similar functions are owned directly or
indirectly by such person.

 

Unless otherwise
explicitly noted, any time period expressed in terms of year or quarter in this
Agreement means the calendar year or calendar quarter, respectively.

 

1.0                               300mm
WAFER CAPACITY

 

1.1                               MICRON
shall incur Capital Expenditures as provided in Schedule 1.1 hereto.

 

1.2                               MICRON
shall achieve Capacity on its 300mm DRAM wafer production lines as provided in
Schedule 1.2 hereto.

 

 

2.0                               DDR2
REQUIREMENTS

 

MICRON shall
provide Samples to INTEL and achieve volume production of DDR2 pursuant to
the  schedules referenced in Sections
2.1 and 2.2 below:

 

2.1                               DDR2
Product Samples:

 

See Schedule 2.1 hereto.

 

2.2                               DDR2
Volume Production:

 

See Schedule 2.2 hereto.

 

2.3                               Inventory Cut Off – Forward Looking. 
Notwithstanding the production
requirements specified in Section 2.2 above and subsequent to [*], following
consultation with and notice to INTEL, MICRON shall not be required to produce
DDR2 at a rate that may result in finished goods inventory of such devices
exceeding sixty (60) days projected sales thereof (measured from the Finished
Goods Inventory Measurement Date and based upon the average of MICRON’s DDR2
demand forecast for the ninety (90) day period commencing with the Finished
Goods Inventory Measurement Date and INTEL’s projections (worldwide demand
forecast adjusted for an assumed MICRON [*] market segment share for DDR2
products) for the same  ninety (90) day
period).  In the event an Inventory
Limitation is implemented, MICRON will review customer forecasts and INTEL’S
projections on a weekly basis until such time as MICRON determines that an
Inventory Limitation is no longer applicable.

 

In the
event an Inventory Limitation is implemented for one hundred eighty (180)
consecutive days or less, MICRON shall, within ninety (90) days from

 

[*]  Certain information on this page has been omitted and filed
separately with the Commission. 
Confidential treatement has been requested with respect to the omitted
portions.

 

5

 

the date
that the Inventory Limitation no longer applies (assuming no intervening
Inventory Limitation has occurred during such ninety (90) day period), return
to the minimum volume production set forth in Section 2.2 above applicable to
the quarter in which such ninetieth (90th) day falls.  If, however, an Inventory Limitation is
implemented for more than one hundred and eighty (180) consecutive days, MICRON
shall, within ninety (90) days from the date that the Inventory Limitation no
longer applies (assuming no intervening Inventory Limitation has occurred
during such ninety (90) day period), return to the minimum volume production
set forth in Section 2.2 above applicable to the quarter in which such
ninetieth (90th) day falls; provided, however, notwithstanding the
foregoing, MICRON shall not be liable for any damages under this Agreement for
failure to meet the production volumes of Section 2.2 above if, in order to
achieve the quarterly production of DDR2 Product for the quarter in which the
ninetieth (90th) day falls (with respect to an Inventory Limitation
in excess of one hundred and eighty (180) days), MICRON would have to increase
production volume of DDR2 Product (measured in 256 Mb equivalents) greater than
[*] based on the number of DDR2 256 Mb equivalents being produced by MICRON on
the last day of MICRON’s fiscal month immediately preceding the day on which
such Inventory Limitation is lifted.  
In such event, MICRON and INTEL shall adjust each of the relevant
remaining quarterly DDR2 volume production milestones to equal a production
ramp rate of no greater than [*].

 

3.0                               MANAGEMENT
MEETINGS AND ROADMAP ALIGNMENT

 

3.1                               Management
Review Meetings.  INTEL and MICRON
shall hold periodic executive level review meetings, as determined by the
Parties, but in no event less frequently than semi-annually, to discuss matters
strategic to each of the Parties, including but not limited to, the
implementation of this Agreement.

 

3.2                               Technology
Review Meetings.  INTEL and MICRON
shall hold a quarterly technology alignment and review meeting.

 

3.3                               Information Exchanged.  All information exchanged or discussed
pursuant to the meetings called for in Sections 3.1 and 3.2 hereof will be on a
confidential basis, subject to the provisions of an applicable corporate
non-disclosure agreement, and in accordance with applicable law.

 

3.4                               Milestone Communication. – MICRON
shall communicate no less often than each calendar quarter, to INTEL’s
identified manager, MICRON’s progress in achieving the milestones set forth in
Sections 1.0 and 2.0 of this Agreement. 
Additionally, commencing October 31, 2003 MICRON shall provide monthly
to INTEL, via email, in a mutually acceptable form, a report of progress toward
completion of the milestones set forth in Section 2.1, including any
significant problems incurred and any failures to meet such milestones.

 

[*]  Certain information on this page has been omitted and filed
separately with the Commission. 
Confidential treatement has been requested with respect to the omitted
portions.

 

6

 

4.0                               DRAM
PRODUCTS

 

4.1                               General. 
MICRON agrees to develop products to support any DRAM
architecture to which at least two Major DRAM Suppliers (determined at the time
of MICRON’s initiation of the development) first allocate development resources
commensurate with development projects of a similar scope which are ultimately
intended for Commercialization after the Effective Date.  Development projects related to such DRAM
architecture by MICRON will not count against INTEL’s right to direct certain
derivative projects under Section 4.2 below.

 

4.2                               Derivatives of Micron DRAM Products.  Upon INTEL’s request, which request may be
made [*] (measured from the Effective Date of this Agreement and each [*]
thereafter), MICRON shall use Reasonable Efforts, at its own expense, to
develop and Commercialize a Derivative Product according to specifications
delivered by INTEL to MICRON from a DRAM Product that is currently being
manufactured, marketed and sold by MICRON. 
MICRON shall not be obligated to undertake more than [*] to develop a
Derivative Product at any given time.

 

4.3                               Custom-Designed DRAM Products for INTEL.  Upon INTEL’s request, which request may be
made [*], MICRON shall use Reasonable Efforts, at its own expense, to develop
and Commercialize a custom-designed DRAM Product specified by INTEL that will
support specified INTEL products. 
MICRON shall commit one team of design engineers to the custom design
project.  INTEL shall provide MICRON
with the INTEL product designs, specifications and other information necessary
for the development of the custom-designed DRAM Product.

 

4.4                               Next Generation DRAM Products.  MICRON and INTEL shall work together using
Reasonable Efforts to develop next-generation DRAM products that will
incorporate advanced DRAM technology. 
The parties will work in good faith to (a) identify and agree upon
specific projects for development, (b) allocate resources consistent with the
scope, timeline and expected deliverables of such projects, and (c)
periodically meet and review the status of such projects.

 

4.5                               Additional Provisions.  Each Party shall own all intellectual
property that is developed solely by such Party as a result of the projects
undertaken pursuant to Sections 4.1, 4.2, 4.3 and 4.4 above, respectively.  The ownership rights governing intellectual
property provided by one Party to the other in support of such projects or
intellectual property that results from joint collaboration shall be defined on
a project by project basis pursuant to a mutually agreed collaboration
agreement.  At the initiation of any
development project outlined in Sections 4.1, 4.2, 4.3 and 4.4 above, the
Parties shall review any identified third party royalty obligations or claims
of intellectual property

 

[*]  Certain information on this page has been omitted and filed
separately with the Commission.  Confidential
treatement has been requested with respect to the omitted portions.

 

7

 

infringement that may be applicable to products resulting from such
development.  If applicable third party
royalties or claims of intellectual property infringement are identified,
MICRON will be obligated to perform and complete the development but may
decline to manufacture any product that would subject MICRON to a claim for
such royalty payments or intellectual property infringement.

 

5.0                               PRODUCT
VALIDATION

 

5.1                               Product
Validation Priority.  INTEL
shall give MICRON DRAM Products priority in the scheduling of validation
services.

 

5.2                               Joint
Validation of Micron Products.  
MICRON and INTEL will each allocate [*] or more engineers reasonably
acceptable to the other Party to create a joint product validation team. This
joint product validation team will focus on validating MICRON memory on INTEL
platforms.

 

6.0                               CALL
ON CAPACITY

 

6.1                               Purchase of Product. 
Each month during the term of this Agreement, commencing ninety (90)
days after the Effective date, INTEL shall have a right to purchase a percent,
up to its Percentage Call on Capacity, of MICRON’s Output of Products for such
month.  Such purchases may be made in
discrete component or module form.  For avoidance of
doubt, the Parties acknowledge and agree that all Products sold by MICRON to
INTEL in any given month shall count against INTEL’s Call on Capacity for such
month, including without limitation Products sold pursuant to Section 5 of
Addendum D to the CPA.  Subject to the limitations set forth in
this Section 6 below, INTEL’s right to purchase MICRON’s Output can be 100%
applied to any single MICRON Product by Product Family.  Notwithstanding anything herein to the contrary,
the portion of the Percentage Call on Capacity not utilized by INTEL or its
designee in any calendar month may not be carried forward to any subsequent
month.

 

6.2                               Purchase
of Product Under the Call on Capacity.  Products sold by
MICRON to INTEL pursuant to INTEL’s Call on Capacity shall be sold pursuant to
the terms and conditions of the Corporate Purchase Agreement, including
Products developed and Commercialized pursuant to Sections 4.2 and 4.3;
provided that notwithstanding anything to the contrary in the Corporate
Purchase Agreement, INTEL may not, within two weeks of the scheduled delivery
date, cancel scheduled Product deliveries under any purchase orders to the
extent such purchase orders provide for deliveries in any month of [*] or more of
MICRON’s anticipated Output for such month.   For
avoidance of doubt, quantities of Products that constitute less than [*] of the
anticipated monthly Output shall remain subject to the standard cancellation
terms of the Corporate Purchase Agreement.  Products sold by

 

[*]  Certain information on this page has been omitted and filed
separately with the Commission. 
Confidential treatement has been requested with respect to the omitted
portions.

 

8

 

MICRON to INTEL’s designees
pursuant to Sections 6.4 and 6.5, respectively, shall be governed by the terms
thereof.

 

6.3                               Forecasts. 
For INTEL purchases of Products, the Parties shall utilize the
forecasting methodology set forth in the Corporate Purchase Agreement.  For purchases of Products by designee
pursuant to the Call on Capacity, the following forecasting methodology shall
be utilized: Each month during the term of this Agreement:  (i) MICRON will provide INTEL with a six (6)
month rolling forecast of its anticipated Output by Product Family; and (ii)
INTEL or its designee will provide MICRON with a six (6) month rolling forecast
of its Products purchases from MICRON out of
MICRON’s then current active Product list and any anticipated allocations of those purchase
rights to third parties as permitted by Section 6.4 below.  These forecasts are provided for planning
purposes only.

 

6.4                               Allocation
of Capacity.  INTEL may
allocate its Call on Capacity in any given month, in whole or in part, to one
or more third parties (not including competitors of MICRON) pursuant to the
terms of this Section 6.4 and subject to Sections 6.7 and 6.8.  Any such allocation shall be for a period of
not less than one (1) month, and only in full month increments.  INTEL shall provide MICRON with written
notice of any such allocation, and MICRON shall not be required to accept any
purchase order from a third party without receipt of such notice.  MICRON shall not be required to sell any
Products to a third party except upon the receipt of a purchase order from such
party.  Purchase orders from such third
parties shall set forth, at a minimum, Product quantity, desired delivery dates
and destination, and MICRON part number. 
The terms and conditions of a sale to any such third party shall be (i)
in the case of a third party with which MICRON has a contractual relationship
governing the purchase and sale of MICRON’s products, consistent with the terms
and conditions applicable to such relationship, including pricing terms, or
(ii) in the case of a third party with which MICRON does not have a contractual
relationship governing the purchase and sale of MICRON’s products, such terms
and conditions as shall be negotiated in good faith between MICRON and such
third party, with lead times of one month or then applicable lead times,
whichever is longer.  MICRON shall have
no more than sixty (60) days to successfully conclude such negotiations.  In the case of (ii) above, the material terms
and conditions shall be substantially similar to the material terms and
conditions between MICRON and its other similarly situated customers and shall
be consistent with MICRON’s customary sales practices, including, without
limitation, credit review.  In no event
shall the recipient of any allocation have any rights, including without limitation,
rights as a third party beneficiary, under this Agreement.  Subject to Section 6.1 above, if MICRON
notifies INTEL that it cannot agree upon terms and conditions in the case of
(ii) above, INTEL may reallocate, provided such reallocation occurs at least
ninety (90) days prior to the scheduled delivery date, the applicable Product
to another third party or purchase such Product itself by so

 

9

 

notifying MICRON within five
(5) business days of MICRON’s notification to INTEL that it cannot agree to
such terms and conditions with the third party.  Failure by INTEL to so notify MICRON within such five (5) day
period shall cause the forfeiture of INTEL’s right to allocate or purchase such
Product.

 

6.5                               Allocation
of DDR2 Call on Capacity to Crucial Technology.  With respect to INTEL’s Call on Capacity regarding DDR2 for any
given month, INTEL may allocate, until the later of [*], or the last day of the first calendar quarter
in which MICRON achieves production of [*] units (or equivalents) of DDR2, up to [*] of its Call on Capacity for
such month to Crucial Technology pursuant to the terms of this Section
6.5.  Any such allocation shall be for a
period of not less than one (1) month, and only in full month increments.  Any such allocation for a given month shall
reduce correspondingly INTEL’s right to allocate its Call on Capacity to third
parties pursuant to Section 6.4 above for such month.  INTEL shall provide MICRON with written notice of any such
allocation.

 

6.6                               Resale of Product. INTEL may resell Product purchased
hereunder to third parties in its discretion. 
Notwithstanding the forgoing, INTEL shall provide MICRON with prior
written notice of its intent to resell such Products, and shall offer to sell
such Products, whether still in discrete form or assembled onto modules, to
MICRON on identical terms and conditions as such Products were originally
purchased by INTEL from MICRON, provided that if such Products were assembled
into module form by INTEL, the price for such Products shall be equal to
INTEL’s actual cost of components plus its actual cost incurred to assemble
such Products into module form.

 

6.7                               Product
Mix and Purchasing Limitations.  INTEL’s Call on Capacity each month will be subject to the
following limitations, unless otherwise agreed by MICRON:  (i) with respect to any Product (determined
by Product Family) that constitutes less than [*] of MICRON’s anticipated Output for such month,
and if INTEL and its designees’ demand exceeds [*] of MICRON’s anticipated Output (such excess
referred to herein as “Excess”) of such Product for such month, then INTEL or
its designee will issue a purchase order for a quantity of Products equal to
the difference between INTEL and its designees’ demand and the [*] of MICRON’s anticipated
Output.  If such purchase order is from
INTEL, the Excess shall be deemed a “custom Item” for purposes of determining
cancellation liability under the CPA; provided that the foregoing limitation in
this Section 6.7 shall not limit INTEL’s purchase right pursuant to Section 5
of Addendum D to the CPA.

 

6.8                               No
Guarantee to Purchase Production Output.  Both Parties
understand and acknowledge that market conditions and technology requirements
change at a rapid pace and that nothing in this Agreement (except with respect
to purchase orders arising out of Section 6.7) constitutes any representation,
guaranty, promise or a commitment that any particular number of devices will

 

[*]  Certain information on this page has been omitted and filed
separately with the Commission. 
Confidential treatement has been requested with respect to the omitted
portions.

 

10

 

be ordered by INTEL (or its permitted designees under
Sections 6.4 and 6.5, respectively). 
Except with respect to purchase orders arising out of Sections 6.7,
MICRON agrees not to assert any claims based upon detrimental reliance or
equitable estoppel arising out of INTEL’s failure to purchase any particular level
of Output.

 

7.0                               REMEDIES AND
LIMITATIONS

 

7.1                               Commercially
Reasonable Efforts.  Except with respect to MICRON’s obligations
set forth in Sections 1.1, 1.2, 2.1 (limited to the provision of [*] Samples only), 2.2 (limited
to [*] DDR2 volume production milestones and aggregate DDR2 volume production
through [*], only), and 4.2 through 4.4, the Parties respective obligations herein
shall be to use commercially reasonable efforts to fulfill each of their
respective covenants and obligations undertaken herein.

 

7.2                               Liquidated Damages Remedy.  INTEL’s sole remedy, and MICRON’s complete liability
to INTEL, for  any failure by MICRON to comply with its commitments or obligations with
respect Sections 1.1, 1.2, 2.1 (limited to the provision of [*] Samples, respectively, only),
and 2.2 (limited to [*] DDR2 volume production milestones, respectively, and aggregate DDR2
volume production through [*], only) hereof, shall be as set forth immediately
below:

 

7.2.1                                             300mm Ramp

 

7.2.1.1                                   Capital Expenditure.  In the
event (a) MICRON fails to satisfy Section 1.1 hereof (i.e., incurrence of
Capital Expenditures in the amounts referenced in Schedule 1.1 hereto during
the period set forth therein) (b) INTEL provides written notice of such failure
to MICRON, and (c) sixty (60) days elapse without MICRON curing such failure
(i.e., MICRON fails to incur Capital Expenditures in the amounts referenced in
Schedule 1.1 hereto during the period set forth therein plus such cure period),
then INTEL shall notify MICRON in writing that it is in default of Section 1.1
hereof and within thirty (30) days of MICRON’s receipt of such default
notification, MICRON shall pay INTEL an amount equal to the applicable Base
Amount set forth on column 2 of Schedule A hereto.

 

7.2.1.2                                   Wafer Start Capacity.  (i) In the event (a) MICRON fails to satisfy
Section 1.2 hereof (i.e., Capacity with respect to the amounts set forth in
Schedule 1.2 hereto by the date set forth therein) and (b) INTEL provides
written notice of such default to MICRON, then within thirty (30) days of
MICRON’s receipt of such default

 

[*]  Certain information on this page has been omitted and filed
separately with the Commission. 
Confidential treatement has been requested with respect to the omitted
portions.

 

11

 

notification, MICRON shall pay
INTEL an amount equal to the applicable Base Amount set forth in column 3 of
Schedule A hereto; and (ii) to the extent applicable, in the event (A) MICRON
fails to achieve the Capacity referenced in column 4 of Schedule A hereto by
the date set forth therein (i.e., Capacity with respect to the number of WSPW
set forth in column 4 of Schedule A by the date set forth therein) and (b)
INTEL provides written notice of such default to MICRON, then within three (3)
business days of the close of the 40th trading day following such
breach, including the date on which such breach occurred, MICRON shall pay
INTEL an amount equal to the applicable Additional Amount determined as set
forth on Schedule A hereto.

 

7.2.2                     DDR2 Production

 

7.2.2.1           [*]
Samples. In the event (a) MICRON fails to satisfy
Section 2.1 hereof with respect to providing [*] Samples to INTEL by [*], (b)
INTEL provides written notice of such failure, and (c) ninety (90) days elapse
without MICRON curing such failure (i.e., MICRON fails to provide such Samples
by the end of such cure period), then INTEL shall notify MICRON in writing that
it is in default of Section 2.1 hereof and within thirty (30) days of MICRON’s
receipt of such default notification, MICRON shall pay INTEL an amount equal to
the applicable Base Amount set forth in column 5 of Schedule A hereto.

 

7.2.2.2           [*]
Samples.  In
the event (a) MICRON fails to satisfy Section 2.1 hereof with respect to
providing [*] Samples to INTEL by [*], (b) INTEL provides written notice of
such failure, and (c) ninety (90) days elapse without MICRON curing such
failure (i.e., MICRON fails to provide such Samples by the end of such cure
period), then INTEL shall notify MICRON in writing that it is in default of
Section 2.1 hereof and within thirty (30) days of MICRON’s receipt of such
default notification, MICRON shall pay INTEL an amount equal to the applicable
Base Amount set forth in column 6 of Schedule A hereto.

 

7.2.2.3           [*] Volume.  In the event (a) MICRON fails to achieve the
volume production milestone for [*] by the date specified in Section 2.2 (but
subject to Sections 2.3 and 7.2.2.6), (b) INTEL provides written notice of such
failure, and (c) ninety (90) days elapse without MICRON curing such failure
(i.e., MICRON fails to achieve such level of volume production by

 

[*]  Certain information on this page has been omitted and filed
separately with the Commission. 
Confidential treatement has been requested with respect to the omitted
portions.

 

12

 

the end of such cure period),
then INTEL shall notify MICRON in writing that it is in default of Section 2.2
hereof and within thirty (30) days of MICRON’s receipt of such notification,
MICRON shall pay INTEL an amount equal to the applicable Base Amount set forth
in column 7 of Schedule A hereto.

 

7.2.2.4           [*] Volume.  In the event (a) MICRON fails to achieve the
volume production milestone for [*] by the date specified in Section 2.2 (but
subject to Sections 2.3 and 7.2.2.6), (b) INTEL provides written notice of such
failure, and (c) ninety (90) days elapse without MICRON curing such failure
(i.e., MICRON fails to achieve such level of volume production by the end of
such cure period), then INTEL shall notify MICRON in writing that it is in
default of Section 2.2 hereof and within thirty (30) days of MICRON’s receipt
of such notification, MICRON shall pay INTEL an amount equal to the applicable
Base Amount set forth in column 8 of 
Schedule A hereto.

 

7.2.2.5           Aggregated Volume.In the event (a) MICRON fails to achieve aggregated
volume production in the amount set forth in 
column 9 of Schedule A through the date set forth in such column (but
subject to Sections 2.3 and 7.2.2.6), (b) INTEL provides written notice of such
failure and (c) ninety (90) days elapse without MICRON curing such failure
(i.e., MICRON fails to achieve such aggregated level of volume production by
the end of such cure period), then INTEL shall notify MICRON in writing that it
is in default of Section 2.2 hereof and within three (3) business days of the
close of the 40th trading day following such breach (taking into
account the applicable cure period and including the date on which such breach
occurred), MICRON shall pay INTEL, to the extent applicable, an amount equal to
the applicable Additional Amount determined as set forth on Schedule A hereto.

 

7.2.2.6           Inventory Limitation.  For
avoidance of doubt, the Parties acknowledge and agree that if an Inventory
Limitation is implemented, the remedies provided in Sections 7.2.2.3 through
7.2.2.5 shall not be applicable if MICRON complies with the provisions of
Section 2.3 above with respect to the applicable period.

 

7.3                               Dollar Cap on
Liquidated Damages Remedies.  In no event shall MICRON’s aggregate liability to INTEL for
liquidated damages pursuant to

 

[*]  Certain information on this page has been omitted and filed
separately with the Commission. 
Confidential treatement has been requested with respect to the omitted
portions.

 

13

 

Section 7.2 hereof (i) exceed in
the aggregate (including Base Amounts and Additional Amounts) that amount set
forth in the first row of the table on Schedule A hereto, (ii) in the case of
Base Amounts, exceed in the aggregate the Maximum Aggregate Base Amount set
forth in  column 1 of the table on
Schedule A hereto, and (iii) in the case of Additional Amounts, exceed in the
aggregate the Maximum Aggregate Additional Amount set forth in  column 1 of the table on Schedule A hereto.

 

7.4                               IN NO EVENT SHALL
EITHER PARTY HAVE ANY LIABILITY TO THE OTHER PARTY OR ANY OTHER THIRD PARTY,
FOR ANY INDIRECT, SPECIAL OR CONSEQUENTIAL DAMAGES ARISING OUT OF FAILURE TO
PERFORM IN ACCORDANCE WITH THIS AGREEMENT, UNDER ANY CAUSE OF ACTION OR THEORY
OF LIABILITY, AND IRRESPECTIVE OF WHETHER THE DEFAULTING PARTY HAS ADVANCE
NOTICE OF THE POSSIBILITY OF SUCH FAILURE TO PERFORM.

 

7.5                               Legal Rights and
Remedies Unaffected.  Except with respect to liability for
MICRON’s failures to satisfy its obligations under Section 1.1, 1.2, 2.1
(limited to the provision of [*] Samples only) and 2.2 (limited to [*] DDR2 volume production
milestones and aggregate DDR2 volume production through [*], only), for which the Parties
have agreed to specific liquidated damages, the Parties retain all other legal
rights and remedies available to them at law or in equity.

 

7.6                               Form of Payment.  Any Base Amounts required to be paid by
MICRON to INTEL pursuant to Section 7.2 hereof shall be paid in immediately
available funds.  Any Additional Amounts
required to be paid by MICRON to INTEL pursuant to Section 7.2 hereof shall be
paid, at MICRON’s election, either in immediately available funds or Rights (or
Common Stock if both INTEL and MICRON agree in writing that such Common Stock
will not require any HSR filing), 
provided that as a condition to MICRON’s ability to elect to pay such
amount in Rights (or Common Stock if both INTEL and MICRON agree in writing
that such Common Stock will not require any HSR filing) MICRON shall have
agreed to provide registration rights with respect to such shares of Common
Stock issuable upon exercise of such Rights on the same terms and conditions as
provided with respect to the shares of Common Stock issuable upon exercise of
the Rights  purchased by INTEL Capital
Corporation pursuant to the Securities Purchase Agreement.  Any such Rights, based on the numbers of
such shares such Rights are then exercisable for (or Common Stock if both INTEL
and MICRON agree in writing that such Common Stock will not require any HSR
filing) shall be valued at the average of the daily NYSE closing prices of
MICRON Common Stock, as reported by Bloomberg, L.P., during the twenty (20)
trading day period ending on the third trading day prior the date such payment
is required to be made.

 

[*]  Certain information on this page has been omitted and filed
separately with the Commission. 
Confidential treatement has been requested with respect to the omitted
portions.

 

14

 

7.7                               Audit Rights.  During normal business hours and upon reasonable advance written notice,  INTEL shall have the right,
semi-annually, to inspect and audit the records of MICRON that are directly
related to MICRON’s performance of its obligations under Sections 1.1, 1.2, and
2.2, respectively, of this Agreement. 
Such audit shall be performed by a INTEL-designated independent and
reputable third party auditor at INTEL’s expense who shall employ such audit procedures
and review such documents as are reasonable, to confirm compliance with the
above obligations.  MICRON shall
cooperate fully with all such reasonable audit requests; provided however, that
in no event shall material containing any information that is protected under
court order or the written direction of regulatory authorities be subject to
such audit.  If, as a result of such
audit, MICRON is found to be materially out of compliance with this Agreement,
MICRON shall reimburse INTEL for all costs associated with the audit and the
number of audits may be reasonably increased. 
Before being permitted to perform the audit referred to herein, the
auditor will be required to execute a MICRON nondisclosure agreement in
reasonable form pursuant to which the auditor and its personnel and agents will
agree to keep the results of such audit confidential and to inform INTEL only
of MICRON’s non-compliance, if any, with Sections 1.1, 1.2 and 2.2 of this
Agreement.

 

8.0                               USE
OF PROCEEDS

 

8.1                               MICRON shall use the proceeds received under
the Securities Purchase Agreement for purposes of achieving the milestones set
forth in Sections 1.0 and 2.0 respectively.

 

9.0                               TERM
AND TERMINATION

 

9.1                               Term.    This Agreement shall be effective as of the Effective Date and shall
remain in effect until termination or expiration as provided for herein.

 

9.2                               Termination.    In addition to the termination rights set
forth in Section 10.4, either Party may terminate this Agreement if the other
Party (a) materially breaches this Agreement and fails to cure the same within
sixty (60) days (unless another time period is otherwise specified herein) from
receipt of notice by the non-breaching Party, (b) files or has filed against it
a petition in bankruptcy, (c) has a receiver appointed to handle its assets or
affairs, (d) makes or attempts to make an assignment for the benefit of
creditors, or (e) either Party undergoes a change in control.

 

9.3                               Expiration.  This Agreement shall expire five (5) years
from the Effective Date, unless otherwise earlier terminated pursuant to
Section 9.2 or upon mutual written agreement of the Parties.

 

15

 

10.                               GENERAL
TERMS

 

10.1                        Controlling Law.  Any claim arising under or relating to this
Agreement shall be governed by the internal substantive laws of the State of
Delaware, U.S.A or federal courts located in Delaware, without regard to
principles of conflict of laws.

 

10.2                        Venue and Waiver to Jury Trial.    The Parties hereby waive the right to jury
trial with respect to any action that may arise under this Agreement. Each
Party hereby agrees to jurisdiction and venue in the courts of the State of
Delaware, U.S.A.

 

10.3                        Confidentiality and Publicity.

 

10.3.1              Confidentiality.  Except to the extent required by law or
judicial order or except as otherwise provided herein, neither Party shall
disclose this Agreement or any of its terms without the other’s prior written
approval, which approval will not be delayed or unreasonably withheld.  Either Party may disclose this Agreement to
the extent required by law or judicial order, provided that if such disclosure
is pursuant to judicial order or proceedings, the disclosing Party will notify
the other Party promptly before such disclosure and will cooperate with the
other Party to seek confidential treatment with respect to the disclosure if
requested by the other Party and provided further that if such disclosure is
required pursuant to the rules and regulations of any federal, state or local
organization, the Parties will cooperate to seek confidential treatment of this
Agreement to the maximum extent possible under law.  Notwithstanding the foregoing, in the absence of any prior
disclosure of this Agreement or the terms thereof pursuant to this Section
10.3.1, each Party may disclose this Agreement and its terms to its agents or
third party consultants who have a need to know arising out of the
establishment, implementation, administration, termination or enforcement of
this Agreement provided such agents are informed of the confidential nature of
this Agreement and the terms thereof and are bound, either by statutory rules
of professional responsibility to maintain client confidences with respect
thereto or, in the absence of such statutory duties, are bound by the terms of
a applicable nondisclosure agreement that treats as confidential information
this Agreement and the terms thereof.

 

MICRON agrees that it
will provide INTEL with the relevant portions of any drafts of any documents,
press releases or other filings in which the Agreement or its contents are to
be disclosed prior to the filing and that it will provide INTEL with an
opportunity prior to the filing thereof to consult with MICRON as to the
contents of such filing.   Micron shall
endeavor to provide adequate opportunity for Intel review and comments prior to
any such filing.  The minimum prior
notice to Intel for such review is two (2) business days.

 

16

 

10.3.2              Public Announcements. 
Upon execution of this Agreement, the Parties will mutually agree on
language to be included in press release(s) announcing the existence of the
transactions contemplated by this Agreement, which press release(s) will be
issued promptly following the execution of this Agreement

 

10.3.3              Third Party Information. 
Neither Party will be required to disclose to the other any confidential
information of any third party without having first obtained such third party’s
prior written consent.

 

10.3.4              Other Disclosures.  Except as otherwise provided for in Sections 10.3.1,
10.3.2, and 10.3.3 hereof, respectively, all confidential information exchanged
by the parties will be disclosed pursuant to the INTEL Corporation/MICRON
Technology, Inc. Corporate Non-Disclosure Agreement #19096.

 

10.4                        Force Majeure.   The Parties
hereto shall not be liable for any failure to perform due to acts of God, war,
terrorism, riot, epidemics, embargoes, acts of civil or military authority,
injunction, fire, flood, accidents, earthquakes, strikes, labor disputes or
causes beyond that Party’s reasonable control. If the failure to perform by
either Party continues for a period of more than one hundred and eighty (180)
days the other Party may terminate this Agreement.

 

10.5                        No Partnership or Joint Venture.    Performance by the Parties under this
Agreement shall be as independent contractors. 
Nothing contained herein or done under the terms of this Agreement shall
constitute the parties entering upon a joint venture or partnership, or shall
constitute any Party as the agent of another Party for any purpose.

 

10.6                        Assignment of Agreement.    Either Party may assign or delegate its
rights or obligations under this Agreement to any or all of its wholly owned
subsidiaries, provided, however, no such assignment or delegation shall relieve
the transferring Party from its obligations hereunder without the consent of
the other Party.  Otherwise, no Party
may assign or delegate its rights and obligations under this Agreement without
the prior written consent of the other. 
For purposes of this provision, the term subsidiaries means a person in
which one of the Parties owns fifty-one percent of the voting stock in such
firm.

 

10.7                        Trademarks.  
No Party has any right to use any trademark, logo, trade name or other
identifying mark of the other Party without the written consent of the
other;  provided that if MICRON
purchases Products assembled into modules by INTEL pursuant to Section 6.6,
MICRON shall be permitted to resell such modules even if they contain a INTEL
trademark, logo, trade name or other identifying mark, subject to compliance
with INTEL’s trademark and logo usage guidelines.

 

17

 

10.8                        Merger, Modification, Waiver.     Failure by either Party to insist in any
instance upon strict conformance to any term or condition herein, or failure by
any Party to act in the event of a breach or default by the other Party, shall
not be construed as a consent to or a waiver of that breach or default or any
subsequent breach or default of the same or of any other term or condition
contained herein.

 

10.9                        Notices.  
All Notices and requests required under this Agreement shall be in
writing and shall, if personally delivered, be deemed given on the immediately
following business day.  If such notice
or request is mailed postage prepaid, certified or registered mail, it shall be
deemed given on the seventh business day.

 

	
  If
  to MICRON:

  	
  If
  to INTEL:

  
	
  Micron
  Technology, Inc.

  	
  Intel
  Corporation

  
	
  8000 S.
  Federal Way,

  	
  2200 Mission
  College Blvd.

  
	
  P.O. Box 6

  	
  Santa Clara,
  CA 95052

  
	
  Boise, Idaho
  83716-9632

  	
  Attention:
  Director, Platform Memory Ops

  
	
  Legal
  Notice:  General Counsel

  	
  Legal
  Notice: General Counsel

  

 

10.10                 Severability.    
If any provision or provisions of this Agreement shall become or be held
to be invalid, illegal or unenforceable, the validity, legality or
enforceability of the remaining provisions shall be in no way be affected or
impaired thereby; provided, however, that if such holding substantially alters
the terms and conditions of this Agreement, the Parties agree to negotiate a
provision to be substituted for the eliminated provision which shall, as close
as possible, have the economic effect of the eliminated provision.

 

10.11                 Survival of Provisions.  
The following provisions of this Agreement shall survive its
termination or expiration:  4.5, 7.3
through 7.5, 10.1 through 10.5, 10.7, and 10.10 through 10.12, together with
such other provisions of this Agreement as may be necessary, but only to the
extent necessary, to give meaning to such surviving provisions.

 

10.12                 Dispute Resolution.   All disputes
arising directly under the express terms of this Agreement shall be resolved as
follows.  Senior management of both
Parties shall meet to attempt to resolve such dispute.  If senior management cannot resolve the
dispute, either Party may make a written demand for formal dispute resolution
and specify therein the scope of the dispute. 
Within thirty (30) days after such written notification, the Parties
shall agree to meet for one day with an impartial mediator and consider dispute
resolution alternatives other than litigation. 
If an alternative method of dispute resolution is not agreed upon within
thirty (30) days after the one (1) day mediation, either Party may proceed as
it sees fit.  This procedure shall be a
prerequisite before taking any additional action regarding disputes arising
under this Agreement.

 

18

 

10.13                 Entire Agreement; Counterparts.  This Agreement
and its Schedules
together constitute the entire agreement among the Parties with respect to the
subject matter hereof, merge all prior and contemporaneous agreements and
negotiations, and may only be modified in a writing signed by authorized
representatives of the Parties. 
This Agreement may be executed in counterparts, each of which shall be
an original, but both of which together shall constitute one instrument.

 

 

[The remainder of this
page is intentionally left blank; signature page follows]

 

19

 

IN WITNESS
WHEREOF these presents have been executed by duly authorized representatives of
the Parties as of the date first above written.

 

 

	
  INTEL
  CORPORATION

  	
  MICRON
  TECHNOLOGY, INC.

  
	
   

  	
   

  
	
  /s/ Gidu Shroff

  	
   

  	
  /s/ W.G. Stover, Jr.

  	
   

  
	
  Signature

  	
  Signature

  
	
   

  	
   

  
	
  Gidu Shroff

  	
   

  	
  W.G. Stover, Jr.

  	
   

  
	
  Printed Name

  	
  Printed Name

  
	
   

  	
   

  
	
  Vice President and Director, Materials

  	
   

  	
  Vice President of Finance and Chief
  Financial Officer

  	
   

  
	
  Title

  	
  Title

  
	
   

  	
   

  
	
  9/23/03

  	
   

  	
  9/23/03

  	
   

  
	
  Date

  	
  Date

  

 

 

[Signature Page to Business Agreement]

 

20

 

INTEL AND MICRON CONFIDENTIAL

 

SCHEDULE A

 

Liquidated Damages

 

Maximum
Total Liability for Failure to Perform Items Listed Below:  $135 million

 

	
  300mm

  	
   

  	
  DDR2

  	
   

  
	
  -1-

  Milestone

  Event

  	
   

  	
  -2-

  $[*] in

  Capital

  Expenditures

  between

  [*]

  	
   

  	
  -3-

  Capacity to

  Commence [*]

  	
   

  	
  -4-

  Capacity to

  Commence [*]

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Delivery
  of Samples

  	
   

  	
  Production
  Volume

  
	
  -5-

  [*]

  	
   

  	
  -6-

  [*]

  	
   

  	
  -7-

  [*]

  	
   

  	
  -8-

  [*]

  	
   

  	
  -9-

  [*]

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Base Amount
  (Maximum Aggregate Base Amount:  $[*])

  	
   

  	
  A = [*]

  	
   

  	
  B = [*]

  	
   

  	
  [*]

  	
   

  	
  C = [*]

  	
   

  	
  D = [*]

  	
   

  	
  E = [*]

  	
   

  	
  F = [*]

  	
   

  	
  [*]

  	
   

  
	
  Maximum
  Additional Amount (Maximum Aggregate Additional Amount: $135 million less any
  Base Amounts paid above)*

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
  **

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  
	
  Investment
  Percentage

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  	
  [*]

  	
   

  

 

*With respect to the failure to meet any milestone
(including a failure to comply with the related covenant or condition) the
applicable Additional Amount, if any, shall be equal to:

 

the lesser of

 

(A)          the applicable Maximum Additional Amount (as set forth
in the applicable column of the table above), and

 

(B)            the
amount by which the applicable Investment Percentage (as set forth in the
applicable column of the table above) times the product of (x) the amount
obtained by subtracting the Current Per Share Price from $13.29 (the purchase
price for the Rights), as appropriately adjusted to reflect the effect of any
stock splits, reclassifications, stock dividends, recapitalizations,
combinations, mergers or other similar events affecting the Common Stock
occurring after the Effective Date (which amount shall be deemed to be zero if
negative), and (y) the aggregate number of Retained Shares, exceeds the applicable
Base Amounts (as set forth in the applicable columns of the table above).

 

For purposes
of such calculations the term “Current Per Share Price” means the average of
the daily NYSE closing prices, as reported by Bloomberg L.P., of MICRON common
stock during the forty (40) trading day period beginning on the day on which
the respective breach occurred (taking into account applicable cure periods),
and the term “Retained Shares” means shares of Common Stock (including for such
purposes shares of Common Stock issuable upon exercise of the Rights) purchased
by INTEL Capital Corporation pursuant to the Securities Purchase Agreement and
beneficially owned by INTEL or its Affiliates as of the day on which the
respective breach occurred (taking into account applicable cure periods).

 

21

 

** For clarification, in the
event that (a) Micron does not achieve the Capacity referenced in column 4
above by the required date and in calculating the Additional Amount, if any, under
column 4 reduction was made for an assumed Base Amount payment under column 2,
and (b) it is determined that Micron is not required to make a Base Amount
payment under column 2, Micron shall make a cash payment to Intel in an amount
(up to a maximum of $[*]) equal to the difference between (i) the applicable
Additional Amount as originally calculated as set forth on this Schedule but
without including such Base Amount in column 2 in such calculation as a one of
the “applicable Base Amounts” (See Paragraph (B) above) less (ii) the
applicable Additional Amount previously paid by Micron with respect to such
column 4.

 

22

 

Schedule 1.1

 

MICRON shall incur between [*], Capital Expenditures of no less than
$[*].

 

 

Schedule 1.2

 

MICRON shall achieve the Capacity to produce [*] wafer starts per week
(“WSPW”) on its 300mm DRAM wafer production line(s) no later than [*].

 

 

Schedule 2.1

 

	
  Density

  	
   

  	
  Samples

  
	
  [*]

  	
   

  	
   

  

 

 

Schedule 2.2

 

	
  By End of Calendar Quarter

  	
   

  	
  Per Quarter
  Quantity* (millions)

  
	
  [*]

  	
   

  	
   

  

 

*Quantity is measured in millions of 256Mb
equivalents (regardless of final form). Production that exceeds the commitment
for one quarter shall be carried over and be credited to subsequent quarters
until exhausted.

 

[*]  Certain information on this page has been omitted and filed
separately with the Commission. 
Confidential treatement has been requested with respect to the omitted
portions.

 

23

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