Document:

Exhibit 10.2

 

EXECUTION VERSION

 

Opening Transaction

 

	
  To:

  	
  Micron Technology, Inc.

  8000 S. Federal Way

  Boise, Idaho 83716-9632

  
	
   

  	
   

  
	
  A/C:

  	
  033-MSAAL4

  
	
   

  	
   

  
	
  From:

  	
  Morgan Stanley & Co.
  International plc

  
	
   

  	
   

  
	
  Re:

  	
  Issuer
  Capped Share Call Option Transaction

  
	
   

  	
   

  
	
  Ref. No:

  	
  CGPWK6

  
	
   

  	
   

  
	
  Date:

  	
  April 8, 2009

  

 

Dear Sir(s):

 

The
purpose of this communication (this “Confirmation”)
is to set forth the terms and conditions of the above-referenced transaction
entered into on the Trade Date specified below (the “Transaction”)
between Morgan Stanley & Co.
International plc (“Dealer”)
and Micron Technology, Inc.  (“Issuer” or “Counterparty”).  Dealer is acting as principal and Morgan Stanley Bank, N.A. (“Agent”), its
affiliate, is acting as agent for Dealer and Counterparty for the Transaction
under this Confirmation.  This
communication constitutes a “Confirmation” as referred to in the
ISDA Master Agreement specified below. 
This Confirmation is a confirmation for purposes of Rule 10b-10
promulgated under the Securities Exchange Act of 1934, as amended (the “Exchange
Act”). Dealer is not a member of the
Securities Investor Protection Corporation.

 

1.             This
Confirmation is subject to, and incorporates, the definitions and provisions of
the 2000 ISDA Definitions (including the Annex thereto) (the “2000 Definitions”) and the definitions and
provisions of the 2002 ISDA Equity Derivatives Definitions (the “Equity Definitions”, and together with the 2000
Definitions, the “Definitions”), in each
case as published by the International Swaps and Derivatives Association, Inc.
(“ISDA”). 
In the event of any inconsistency between the 2000 Definitions and the
Equity Definitions, the Equity Definitions will govern.

 

Each
party is hereby advised, and each such party acknowledges, that the other party
has engaged in, or refrained from engaging in, substantial financial
transactions and has taken other material actions in reliance upon the parties’
entry into the Transaction to which this Confirmation relates on the terms and
conditions set forth below.

 

This
Confirmation evidences a complete and binding agreement between Dealer and
Counterparty as to the terms of the Transaction to which this Confirmation
relates.  This Confirmation shall be
subject to an agreement (the “Agreement”) in the form of the 2002 ISDA
Master Agreement as if Dealer and Counterparty had executed an agreement in
such form on the date hereof (but without any Schedule except for (i) New
York law (without regard to the conflicts of law principles) as the governing
law and (ii) US Dollars (“USD”) as
the Termination Currency).  The parties hereby agree that no Transactions
other than the Transaction to which this Confirmation relates shall be governed
by the Agreement.

 

All
provisions contained in, or incorporated by reference to, the Agreement will
govern this Confirmation except as expressly modified herein.  In the event of any inconsistency between
this Confirmation and the Definitions or the Agreement, as the case may be,
this Confirmation shall govern.

 

 

2.             This Transaction constitutes a Share Option Transaction
for purposes of the Equity Definitions. 
The terms of the particular Transaction to which this Confirmation
relates are as follows:

 

General Terms:

 

	
  Trade Date:

  	
   

  	
  April 8, 2009

  
	
   

  	
   

  	
   

  
	
  Components:

  	
   

  	
  The Transaction will be
  divided into individual Components, each with the terms set forth in this
  Confirmation, and, in particular, with the Number of Options and Expiration
  Date set forth in Annex A to this Confirmation. The exercise, valuation and
  settlement of the Transaction will be effected separately for each Component
  as if each Component were a separate Transaction under the Agreement.

  
	
   

  	
   

  	
   

  
	
  Option Style:

  	
   

  	
  European

  
	
   

  	
   

  	
   

  
	
  Option Type:

  	
   

  	
  Call

  
	
   

  	
   

  	
   

  
	
  Seller:

  	
   

  	
  Dealer

  
	
   

  	
   

  	
   

  
	
  Buyer:

  	
   

  	
  Counterparty

  
	
   

  	
   

  	
   

  
	
  Shares:

  	
   

  	
  Common Stock (par value
  $0.10 per Share) of  Counterparty
  (Ticker: “MU”)

  
	
   

  	
   

  	
   

  
	
  Number of Options:

  	
   

  	
  For each Component, as
  provided in Annex A to this Confirmation; provided that
  if Morgan Stanley & Co. Incorporated and Goldman, Sachs & Co., as
  representatives of the Underwriters named in the Underwriting Agreement dated
  April 8, 2009 between Counterparty and Morgan Stanley &
  Co. Incorporated
  and Goldman, Sachs & Co. (the “Underwriting Agreement”),
  exercise the option to purchase additional 4.25% Convertible Senior Notes due October 15, 2013 (“Additional Convertible
  Notes”) pursuant to Section 2 of the Underwriting Agreement, the
  Number of Options for each Component shall be automatically increased,
  effective upon payment by Counterparty of the Additional Premium on the
  Additional Premium Payment Date, by a number of Options equal to the product
  of (x) the Number of Options for such Component as set forth in Annex A
  to this Confirmation and (y) a fraction, the numerator of which is the
  number of Additional Convertible Notes in denominations of USD1,000 principal
  amount issued pursuant to such exercise and the denominator of which is the
  number of Convertible Notes in denominations of USD1,000 principal amount
  issued prior to such exercise, subject to rounding as deemed appropriate by
  the Calculation Agent, and Calculation Agent will promptly provide
  Counterparty and Dealer a schedule setting forth the increased Number of
  Options for all Components.

  
	
   

  	
   

  	
   

  
	
  Option Entitlement:

  	
   

  	
  One Share per Option

  
	
   

  	
   

  	
   

  
	
  Strike Price:

  	
   

  	
  5.0837

  
	
   

  	
   

  	
   

  
	
  Cap Price:

  	
   

  	
  6.6400

  
	
   

  	
   

  	
   

  
	
  Premium:

  	
   

  	
  The premium for each
  Component shall be as provided in Annex A to this Confirmation and the
  aggregate Premium for the 

  

 

2

 

	
   

  	
   

  	
  Transaction is USD 7,525,000; provided that
  if the Number of Options is increased pursuant to the proviso to the
  definition of “Number of Options” above, Counterparty shall pay on the
  Additional Premium Payment Date an additional Premium (the “Additional
  Premium”) equal to the product of the number of Options by which the
  aggregate Number of Options for such Components is so increased and USD 0.5465031. Dealer and Counterparty hereby agree
  that, notwithstanding anything to the contrary herein or in the Agreement,
  following the payment of the Premium (including the Additional Premium, if
  any), in the event that (a) an Early Termination Date (whether as a
  result of an Event of Default or a Termination Event) occurs or is designated
  with respect to any Transaction and, as a result, Counterparty owes to Dealer
  the amount calculated under Section 6(e) of the Agreement
  (calculated as if the Transactions were terminated on such Early Termination
  Date were the sole Transactions under the Agreement) or (b) Counterparty
  owes to Dealer, pursuant to Section 12.7 or Section 12.9 or the
  Equity Definitions, an amount calculated under Section 12.8 of the
  Equity Definitions, such amount shall be deemed to be zero.

  
	
   

  	
   

  	
   

  
	
  Premium Payment Date:

  	
   

  	
  The Effective Date

  
	
   

  	
   

  	
   

  
	
  Effective Date:

  	
   

  	
  April 15, 2009 or such other date as agreed by the parties.

  
	
   

  	
   

  	
   

  
	
  Additional Premium Payment Date:

  	
   

  	
  The closing date for
  the purchase and sale of the Additional Convertible Notes.

  
	
   

  	
   

  	
   

  
	
  Exchange:

  	
   

  	
  New York Stock Exchange

  
	
   

  	
   

  	
   

  
	
  Related Exchange:

  	
   

  	
  All Exchanges located
  in the United States on which the equity securities or equity-linked
  securities of Counterparty are traded.

  
	
   

  	
   

  	
   

  
	
  Procedures for Exercise:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Expiration Time:

  	
   

  	
  Valuation Time

  
	
   

  	
   

  	
   

  
	
  Expiration Date:

  	
   

  	
  As provided in Annex A
  to this Confirmation (or, if such date is not a Scheduled Trading Day, the
  next following Scheduled Trading Day that is not already an Expiration Date
  for another Component); provided that, notwithstanding anything to the
  contrary in the Equity Definitions, if that date is a Disrupted Day, the
  Calculation Agent may determine that the Expiration Date for such Component
  is a Disrupted Day in whole or in part, in which case the Calculation Agent
  shall, in its reasonable discretion, determine the number of Options for
  which such day shall be the Expiration Date and (i) allocate the remaining
  Options for such Expiration Date to one or more of the remaining Expiration
  Dates, (ii) designate the first succeeding Scheduled Trading Day that is
  not a Disrupted Day and is not or is not deemed to be an Expiration Date in
  respect of any other Component of the Transaction hereunder as the Expiration
  Date for such remaining Options, or (iii) a combination thereof; provided further that
  if the Expiration Date for a Component (including any portion of a Component
  whose Expiration Date was postponed as a result of clause (ii) or
  (iii) above) has not occurred as of the Final Disruption Date,
  (a) such Final Disruption Date shall be deemed to be the 

  

 

3

 

	
   

  	
   

  	
  Expiration Date and Valuation Date for such Component, and
  (b) the Calculation Agent shall determine the VWAP Price for such
  Component on the basis of its good faith estimate of the trading value for
  the relevant Shares.
  Section 6.6 of the Equity Definitions shall not apply to any Valuation
  Date occurring on an Expiration Date.

  
	
   

  	
   

  	
   

  
	
  Final Disruption Date:

  	
   

  	
  November 30, 2012

  
	
   

  	
   

  	
   

  
	
  Market Disruption Event:

  	
   

  	
  Section 6.3(a) of
  the Equity Definitions is hereby amended by replacing clause
  (ii) thereof in its entirety with the following: “(ii) an Exchange
  Disruption, or” and inserting immediately following clause (iii) thereof
  the following: “; in each case that the Calculation Agent determines is
  material.”

  
	
   

  	
   

  	
   

  
	
  Exchange Business Day; Disrupted Day:

  	
   

  	
  Sections 1.29 and
  6.4 of the Equity Definitions are hereby amended by adding “, unless the
  Calculation Agent reasonably determines that any failure of such Exchange or
  Related Exchange to open does not have a material effect on the trading
  market for the Shares” following the words “regular trading sessions” in the
  third line thereof and the words “regular trading session” in the second line
  thereof, respectively.

  
	
   

  	
   

  	
   

  
	
  Automatic Exercise:

  	
   

  	
  Applicable; and means
  that the Number of Options for the relevant Component will be deemed to be
  automatically exercised at the Expiration Time on the Expiration Date for
  such Component if at such time such Component is In-the-Money, as determined
  by the Calculation Agent, unless Buyer notifies Seller (by telephone or in
  writing) prior to the Expiration Time on such Expiration Date that it does
  not wish Automatic Exercise to occur with respect to such Component, in which
  case Automatic Exercise will not apply with respect to such Component. “In-the-Money”
  means, in respect of any Component, that the VWAP Price on the Expiration
  Date for such Component is greater than the Strike Price for such Component.

  
	
   

  	
   

  	
   

  
	
  Seller’s Telephone Number and Telex and/or Facsimile
  Number and Contact Details for purpose of Giving Notice:

  	
   

  	
  To be provided by
  Dealer.

  
	
   

  	
   

  	
   

  
	
  Settlement Terms:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Settlement Method Election:

  	
   

  	
  Applicable; provided that (a) Section 7.1
  of the Equity Definitions is hereby amended by replacing the term “Physical
  Settlement” with the term “Net Share Settlement”, (b) Counterparty must
  make a single irrevocable election for all Components and (c) such
  Settlement Method Election would be effective only if Counterparty represents
  and warrants to Dealer in writing on the date of such Settlement Method
  Election that none of Counterparty and its officers and directors is aware of
  any material nonpublic information regarding Counterparty or the Shares as of
  such date.

  
	
   

  	
   

  	
   

  
	
  Electing Party:

  	
   

  	
  Counterparty

  
	
   

  	
   

  	
   

  
	
  Settlement Method Election Date:

  	
   

  	
  The fifth Scheduled
  Trading Day prior to the scheduled Expiration Date for the first Component.

  

 

4

 

	
  Default Settlement Method:

  	
   

  	
  Net Share Settlement

  
	
   

  	
   

  	
   

  
	
  Settlement Currency:

  	
   

  	
  USD

  
	
   

  	
   

  	
   

  
	
  VWAP Price:

  	
   

  	
  For any Expiration Date
  or other Exchange Business Day, as displayed on Bloomberg Page “MU.N
  <Equity> AQR” (or any successor thereto) for the Counterparty with
  respect to the period between 9:30 a.m. to 4:00 p.m. (New York City
  time) on such day, as determined by Calculation Agent. If no price is
  available, or there is a Market Disruption Event on such Expiration Date or
  other Exchange Business Day, the Calculation Agent shall determine the VWAP
  Price in a commercially reasonable manner.

  
	
   

  	
   

  	
   

  
	
  Net Share Settlement:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Settlement Date:

  	
   

  	
  The Settlement Date
  shall be the third Scheduled Trading Day after the Expiration Date for the
  Component (or, in respect of all or part of its obligation to deliver the
  Number of Shares to be Delivered, such other earlier date or dates Dealer
  shall determine in its sole discretion).

  
	
   

  	
   

  	
   

  
	
  Net Share Settlement:

  	
   

  	
  If Net Share Settlement applies, on the Settlement Date for each
  Component, Dealer shall deliver to Counterparty a number of Shares equal to
  the Number of Shares to be Delivered for such Component to the account
  specified by Counterparty and cash in lieu of any fractional shares for such Component
  valued at the VWAP Price on the Expiration Date for such Component.

  
	
   

  	
   

  	
   

  
	
  Number of Shares to be Delivered:

  	
   

  	
  For any Component,
  subject to the last sentence of Section 9.5 of the Equity Definitions:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (i)  if the
  VWAP Price on the Expiration Date for such Component exceeds the Strike Price
  for such Component but is less than the Cap Price for such Component, a
  number of Shares equal to (i) the product of (A) the excess of such
  VWAP Price over such Strike Price, (B) the Number of Options for such
  Component and (C) the Option Entitlement, divided by
  (ii) such VWAP Price;

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (ii)  if the
  VWAP Price on the Expiration Date for such Component equals or exceeds the
  Cap Price for such Component, a number of Shares equal to (i) the
  product of (A) the excess of such Cap Price over the Strike Price for
  such Component, (B) the Number of Options for such Component and
  (C) the Option Entitlement, divided by
  (ii) such VWAP Price; or

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (iii)  if the
  VWAP Price on the Expiration Date for such Component is less than or equal to
  the Strike Price for such Component, a number of Shares equal to zero.

  
	
   

  	
   

  	
   

  
	
  Other Applicable Provisions:

  	
   

  	
  The provisions of
  Sections 9.1(c), 9.8, 9.9, 9.10, 9.11 and 9.12 of the Equity Definitions will
  be applicable, as if Physical Settlement applied to the Transaction; provided that the Representation and
  Agreement contained in Section 9.11 of the Equity Definitions shall be
  modified by excluding any representations therein relating to restrictions,
  obligations, limitations or requirements under applicable securities laws as
  a result of the fact that Counterparty is the issuer of any Shares.

  

 

5

 

	
  Cash
  Settlement:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Cash Settlement Payment Date:

  	
   

  	
  The Cash Settlement
  Payment Date shall be the third Scheduled Trading Day after the Expiration
  Date for each Component.

  
	
   

  	
   

  	
   

  
	
  Cash Settlement:

  	
   

  	
  If Cash Settlement
  applies, on the relevant Cash Settlement Payment Date for such Component,
  Dealer shall pay to Counterparty an amount equal to the sum of the Option
  Cash Settlement Amount for each Component to the account specified by
  Counterparty.

  
	
   

  	
   

  	
   

  
	
  Strike Price Differential:

  	
   

  	
  For any Component:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (i)  if the
  VWAP Price on the Expiration Date for such Component exceeds the Strike Price
  for such Component but is less than the Cap Price for such Component, an
  amount equal to the excess of such VWAP Price over such Strike Price.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (ii)  if the
  VWAP Price on the Expiration Date for such Component equals or exceeds the
  Cap Price for such Component, an amount equal to the excess of such Cap Price
  over the Strike Price for such Component; or

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (iii)  if the
  VWAP Price on the Expiration Date for such Component is less than or equal to
  the Strike Price for such Component, zero.

  
	
   

  	
   

  	
   

  
	
  Share Adjustments:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Method of Adjustment:

  	
   

  	
  Calculation Agent
  Adjustment; provided that under Section 11.2(e)(v) of the
  definition of Potential Adjustment Event the word “repurchase” shall be
  replaced with the word “tender offer”.

  
	
   

  	
   

  	
   

  
	
  Extraordinary Events:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  New Shares:

  	
   

  	
  In the
  definition of “New Shares” in Section 12.1(i) of the Equity
  Definitions, the text in subsection (i) shall be deleted in its entirety
  and replaced with: “publicly quoted, traded or listed on any of the New York
  Stock Exchange, the NASDAQ Global Select Market or the NASDAQ Global Market
  (or their respective successors)”.

  
	
   

  	
   

  	
   

  
	
  Consequences of Merger Events:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  (a)          Share-for-Share:

  	
   

  	
  Modified Calculation
  Agent Adjustment and, for the avoidance of doubt, if the consideration for
  the Shares includes (or, at the option of a holder of Shares, may include)
  shares of an entity or person not organized under the laws of the United
  States, any State thereof or the District of Columbia (“Foreign Issuer
  Shares”), then the Calculation Agent may choose to apply Cancellation and
  Payment (Calculation Agent Determination) to that portion of the
  consideration comprising Foreign Issuer Shares.

  
	
   

  	
   

  	
   

  
	
  (b)          Share-for-Other:

  	
   

  	
  Cancellation and
  Payment (Calculation Agent Determination) on that portion of the Other
  Consideration that consists of cash; Modified Calculation Agent Adjustment on
  the remainder of the Other Consideration and, for the avoidance of doubt, if
  the Other Consideration includes (or, at the option of a holder of Shares, may
  include) Foreign Issuer Shares, then the Calculation Agent may

  

 

6

 

	
   

  	
   

  	
  choose to apply
  Cancellation and Payment (Calculation Agent Determination) to that portion of
  the Other Consideration comprising Foreign Issuer Shares.

  
	
   

  	
   

  	
   

  
	
  (c)          Share-for-Combined:

  	
   

  	
  Component Adjustment

  
	
   

  	
   

  	
   

  
	
  Tender Offer:

  	
   

  	
  Applicable; provided that
  (a) Section 12.1(d) of the Equity Definitions is hereby
  amended by replacing the words “10%” in the third line with “50%”.

  
	
   

  	
   

  	
   

  
	
  Consequences of Tender Offers:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  (a)          Share-for-Share:

  	
   

  	
  Modified Calculation
  Agent Adjustment

  
	
   

  	
   

  	
   

  
	
  (b)          Share-for-Other:

  	
   

  	
  Cancellation and
  Payment (Calculation Agent Determination) on that portion of the Other
  Consideration that consists of cash; Modified Calculation Agent Adjustment on
  the remainder of the Other Consideration and, for the avoidance of doubt, if
  the Other Consideration includes (or, at the option of a holder of Shares,
  may include) Foreign Issuer Shares, then the Calculation Agent may choose to
  apply Cancellation and Payment (Calculation Agent Determination) to that
  portion of the Other Consideration comprising Foreign Issuer Shares.

  
	
   

  	
   

  	
   

  
	
  (c)          Share-for-Combined:

  	
   

  	
  Component Adjustment

  
	
   

  	
   

  	
   

  
	
  Nationalization,
  Insolvency or Delisting:

  	
   

  	
  Cancellation and
  Payment (Calculation Agent Determination); provided that in addition to the
  provisions of Section 12.6(a)(iii) of the Equity Definitions, it
  shall also constitute a Delisting if the Exchange is located in the United
  States and the Shares are not immediately re-listed, re-traded or re-quoted
  on any of the New York Stock Exchange, the NASDAQ Global Select Market or the
  NASDAQ Global Market (or their respective successors); if the Shares are
  immediately re-listed, re-traded or re-quoted on any such exchange or
  quotation system, such exchange or quotation system shall be deemed to be the
  Exchange.

  
	
   

  	
   

  	
   

  
	
  Additional Disruption Events:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  (a)          Change
  in Law:

  	
   

  	
  Applicable; provided that
  Section 12.9(a)(ii) of the Equity Definitions is hereby amended by
  (i) replacing the phrase “the interpretation” in the third line thereof
  with the phrase “or announcement or statement of the formal or informal
  interpretation”, (ii) immediately following the word “that” in the sixth
  line thereof, adding the phrase “as a result of one or more of the
  circumstances listed in (A) and (B) above” and (iii) deleting
  clause (Y) thereof in its entirety.

  
	
   

  	
   

  	
   

  
	
  (b)          Failure
  to Deliver:

  	
   

  	
  Not Applicable

  
	
   

  	
   

  	
   

  
	
  (c)          Insolvency
  Filing:

  	
   

  	
  Applicable

  
	
   

  	
   

  	
   

  
	
  (d)          Hedging
  Disruption:

  	
   

  	
  Applicable

  
	
   

  	
   

  	
   

  
	
  (e)          Increased
  Cost of Hedging:

  	
   

  	
  Not Applicable

  
	
   

  	
   

  	
   

  
	
  Hedging Party:  Dealer

  	
   

  	
   

  

 

7

 

	
  Determining Party:

  	
   

  	
  Dealer

  
	
   

  	
   

  	
   

  
	
  Non-Reliance:

  	
   

  	
  Applicable

  
	
   

  	
   

  	
   

  
	
  Agreements and Acknowledgements

  	
   

  	
   

  
	
  Regarding Hedging Activities:

  	
   

  	
  Applicable

  
	
   

  	
   

  	
   

  
	
  Additional Acknowledgements:

  	
   

  	
  Applicable

  
	
   

  	
   

  	
   

  
	
  Dealer Payment
  Instructions:

  	
   

  	
  To be provided
  by Dealer.

  
	
   

  	
   

  	
   

  
	
  Counterparty Payment
  and Delivery Instructions:

  	
   

  	
  To be provided
  by Counterparty.

  

 

	
  3.

  	
  Calculation Agent:  Dealer; provided that
  all determinations made by the Calculation Agent shall be made in good 

  

faith and in a commercially reasonable manner. Following any
calculation by the Calculation Agent hereunder, upon a prior written request by
Issuer, the Calculation Agent will provide to Counterparty by e-mail to the
e-mail address provided by Counterparty in such a prior written request a
report (in a commonly used file format for the storage and manipulation of
financial data) displaying in reasonable detail the basis for such calculation;
and provided further that no transferee of
the Transaction in accordance with the terms of this Confirmation shall act as
Calculation Agent with respect to such transferred Transaction without the
prior consent of Counterparty, such consent not to be unreasonably withheld.

 

	
  4.

  	
  Offices:

  
	
   

  	
   

  
	
  (a)

  	
  The Office of Dealer for this Transaction is: 1585 Broadway, 4th Floor, New York, New York 10036

  
	
   

  	
   

  
	
  (b)

  	
  The Office of
  Counterparty for this Transaction is: 8000 S. Federal Way, Boise, Idaho
  83716-9632.

  
	
   

  	
   

  
	
  5.

  	
  Notices: For
  purposes of this Confirmation:

  
	
   

  	
   

  
	
  (a)

  	
  Address for notices or communications to
  Counterparty:

  
	
   

  	
   

  	
   

  
	
   

  	
  To:

  	
  Micron Technology, Inc.

  
	
   

  	
   

  	
  8000 South Federal Way

  
	
   

  	
   

  	
  Boise, Idaho 83716

  
	
   

  	
  Attn:

  	
  General Counsel

  
	
   

  	
  Telephone:

  	
  (208) 368-4000

  
	
   

  	
  Facsimile:

  	
  (208) 368-4540

  
	
   

  	
   

  	
   

  
	
   

  	
  With
  a copy to:

  	
  Wilson
  Sonsini Goodrich & Rosati

  
	
   

  	
   

  	
  Professional
  Corporation

  
	
   

  	
   

  	
  650
  Page Mill Road

  
	
   

  	
   

  	
  Palo
  Alto, CA 94304

  
	
   

  	
  Attn:

  	
  John
  A. Fore, Esq.

  
	
   

  	
  Telephone:

  	
  (650)
  493-9300

  
	
   

  	
  Facsimile:

  	
  (650)
  493-6811

  
	
   

  	
   

  	
   

  
	
  (b)

  	
  Address for notices or communications to Dealer:

  
	
   

  	
   

  	
   

  
	
   

  	
  To:

  	
  Morgan Stanley &
  Co. International plc

  
	
   

  	
   

  	
  c/o Morgan Stanley Bank,
  N.A.

  
	
   

  	
   

  	
  c/o Morgan Stanley

  
	
   

  	
   

  	
  750 Seventh Avenue, 29th Floor

  
	
   

  	
   

  	
  New York, New York 10019

  
	
   

  	
  Attn:

  	
  Robert Poselle

  
	
   

  	
  Telephone:

  	
  (212) 276-2427

  
	
   

  	
  Facsimile:

  	
  (212) 507-0724

  

 

8

 

	
   

  	
  With a copy to:

  	
  Morgan Stanley &
  Co. International plc

  
	
   

  	
   

  	
  c/o Morgan Stanley Bank, N.A.

  
	
   

  	
   

  	
  c/o Morgan Stanley

  
	
   

  	
   

  	
  750 Seventh Avenue, 29th Floor

  
	
   

  	
   

  	
  New York, New York 10019

  
	
   

  	
  Attn:

  	
  Anthony Cicia

  
	
   

  	
  Telephone:

  	
  (212) 276-2427

  
	
   

  	
  Facsimile:

  	
  (212) 507-0724

  

 

6.             Representations, Warranties and Agreements:

 

(a)           In addition to the representations, warranties and
agreements in the Agreement and those contained elsewhere herein, Counterparty
represents and warrants to and for the benefit of, and agrees with, Dealer as
follows:

 

(i)            On the Trade Date and on any
Additional Premium Date (A) none of Counterparty and its officers and
directors is aware of any material nonpublic information regarding Counterparty
or the Shares and (B) all reports and other documents filed by
Counterparty with the Securities and Exchange Commission pursuant to the
Exchange Act when considered as a whole (with the more recent such reports and
documents deemed to amend inconsistent statements contained in any earlier such
reports and documents), do not contain any untrue statement of a material fact
or any omission of a material fact required to be stated therein or necessary
to make the statements therein, in the light of the circumstances in which they
were made, not misleading.

 

(ii)           Counterparty intends the Transaction
to qualify as an equity instrument for purposes of EITF Issue No. 00-19.  Without
limiting the generality of Section 13.1 of the Equity Definitions,
Counterparty acknowledges that Dealer is not making any representations or
warranties with respect to the treatment of the Transaction under any
accounting standards including FASB Statements 128, 133 ( as amended), 149 or
150, EITF Issue No. 00-19, 01-6, 03-6 or 07-5 (or any successor issue
statements) or under FASB’s Liabilities & Equity Project.

 

(iii)          Prior to the Trade Date, Counterparty
shall deliver to Dealer a resolution of Counterparty’s board of directors (or
an authorized committee thereof) authorizing the Transaction and such other
certificate or certificates as Dealer shall reasonably request.

 

(iv)          On the Trade Date and on any
Additional Premium Date, without limiting the generality of Section 3(a)(iii) of
the Agreement, the Transaction will not violate Rule 13e-1 or Rule 13e-4
under the Exchange Act.

 

(v)           Counterparty is not entering into
this Confirmation to create actual or apparent trading activity in the Shares
(or any security convertible into or exchangeable for Shares) or to manipulate
the price of the Shares (or any security convertible into or exchangeable for
Shares) or otherwise in violation of the Exchange Act.

 

(vi)          Counterparty is not, and after giving
effect to the transactions contemplated hereby will not be, an “investment
company” as such term is defined in the Investment Company Act of 1940, as
amended.

 

(vii)         On the Trade Date, the Premium Payment
Date and on any Additional Premium Payment Date (A) the assets of
Counterparty at their fair valuation exceed the liabilities of Counterparty,
including contingent liabilities, (B) the capital of Counterparty is
adequate to conduct the business of Counterparty and (C) Counterparty has
the ability to pay its debts and obligations as such debts mature and does not
intend to, or does not believe that it will, incur debt beyond its ability to
pay as such debts mature.

 

(viii)        (A)  During each period starting on
the first Expiration Date and ending on the last Expiration Date, in each case sharing
a common Final Disruption Date (each a “Settlement Period”), the Shares
or securities that are convertible into, or exchangeable or exercisable for
Shares shall not be, subject to a “restricted period,” as such term is defined
in Regulation M under the Exchange Act (“Regulation M”) and (B) Counterparty
shall not engage in any “distribution,” as such term is defined in Regulation
M, other than a 

 

9

 

distribution meeting the requirements of the exceptions set forth in
sections 101(b)(10) and 102(b)(7) of Regulation M, until the second
Exchange Business Day immediately following the relevant Settlement Period.

 

(ix)           During each Settlement Period,
neither Counterparty nor any “affiliate” or “affiliated purchaser” (each as
defined in Rule 10b-18 under the Exchange Act (“Rule 10b-18”))
shall directly or indirectly (including, without limitation, by means of any
cash-settled or other derivative instrument) purchase, offer to purchase, place
any bid or limit order that would effect a purchase of, or commence any tender
offer relating to, any Shares (or an equivalent interest, including a unit of
beneficial interest in a trust or limited partnership or a depository share) or
any security convertible into or exchangeable or exercisable for Shares.

 

(b)           Each of Dealer and Counterparty agrees and represents that
it is an “eligible contract participant” as defined in Section 1a(12) of
the U.S. Commodity Exchange Act, as amended.

 

(c)           Each of Dealer and Counterparty acknowledges that the
offer and sale of the Transaction to it is intended to be exempt from
registration under the Securities Act of 1933, as amended (the “Securities
Act”), by virtue of Section 4(2) thereof.  Accordingly, Counterparty represents and
warrants to Dealer and Dealer represents to Counterparty that (i) it has
the financial ability to bear the economic risk of its investment in the
Transaction and is able to bear a total loss of its investment and its
investments in and liabilities in respect of the Transaction, which it
understands are not readily marketable, are not disproportionate to its net
worth, and it is able to bear any loss in connection with the Transaction,
including the loss of its entire investment in the Transaction, (ii) it is
an “accredited investor” as that term is defined in Regulation D as promulgated
under the Securities Act, (iii) it is entering into the Transaction for
its own account without a view to the distribution or resale thereof, (iv) the
assignment, transfer or other disposition of the Transaction has not been and
will not be registered under the Securities Act and is restricted under this
Confirmation, the Securities Act and state securities laws, (v) its
financial condition is such that it has no need for liquidity with respect to
its investment in the Transaction and no need to dispose of any portion thereof
to satisfy any existing or contemplated undertaking or indebtedness and is
capable of assessing the merits of and understanding (on its own behalf or
through independent professional advice), and understands and accepts, the
terms, conditions and risks of the Transaction.

 

(d)           Each of Dealer and
Counterparty agrees and acknowledges that Dealer is a “financial institution,” “swap
participant” and/or “financial participant” within the meaning of Sections
101(22), 101(53C) and 101(22A) of Title 11 of the United States Code (the “Bankruptcy Code”).  The parties hereto further agree and
acknowledge (A) that this Confirmation is (i) a “securities contract,”
as such term is defined in Section 741(7) of the Bankruptcy Code,
with respect to which each payment and delivery hereunder is a “settlement
payment,” as such term is defined in Section 741(8) of the Bankruptcy
Code, and (ii) a “swap agreement,” as such term is defined in Section 101(53B)
of the Bankruptcy Code, with respect to which each payment and delivery
hereunder is a “transfer,” as such term is defined in Section 101(54) of
the Bankruptcy Code, and (B) that Dealer is entitled to the protections
afforded by, among other sections, Sections 362(b)(6), 362(b)(17), 546(e),
546(g), 555 and 560 of the Bankruptcy Code.

 

(e)           Counterparty hereby agrees and acknowledges that the
Transaction has not been registered with the Securities and Exchange Commission
or any state securities commission and that the Options are being written by
Dealer to Counterparty in reliance upon exemptions from any such registration
requirements.  Counterparty acknowledges
that all Options acquired from Dealer will be acquired for investment purposes
only and not for the purpose of resale or other transfer except in compliance
with the requirements of the Securities Act. 
Counterparty will not sell or otherwise transfer any Option or any
interest therein except in compliance with the requirements of the Securities
Act and any subsequent offer or sale of the Options will be solely for
Counterparty’s account and not as part of a distribution that would be in
violation of the Securities Act.

 

7.             Repurchase Notices.  Counterparty shall, on any day on which
Counterparty effects any repurchase of Shares, promptly give Dealer a written
notice of such repurchase (a “Repurchase Notice”) on such day if
following such repurchase, the Notice Percentage as determined on such day is
greater by 0.5% than the Notice Percentage included in the immediately
preceding Repurchase Notice (or, in the case of the first such Repurchase
Notice or the first such Repurchase Notice after the initial Final Disruption
Date, greater than 4.5%).  The “Notice Percentage” as of any day
is the fraction (A) the numerator of which is the aggregate of the Number
of Shares for all Components under this Transaction and all other Transactions
and (B) the denominator of which is the number of Shares outstanding on
such day.  In the event that Counterparty
fails to provide Dealer with a Repurchase Notice on the day and in the manner

 

10

 

specified in this Section 7, then Counterparty to the extent
permitted by law agrees to indemnify and hold harmless Dealer, its affiliates
and their respective directors, officers, employees, agents and controlling
persons (Dealer and each such person being an “Indemnified Person”) from and
against any and all losses (including losses relating to Dealer’s hedging
activities as a consequence of becoming, or of the risk of becoming, a
Section 16 “insider,” including without limitation any forbearance from hedging
activities or cessation of hedging activities and any losses in connection
therewith with respect to this Transaction), claims, damages and liabilities
(or actions in respect thereof), joint or several, to which such Indemnified
Person is subject, including without limitation, Section 16 of the
Exchange Act), relating to or arising out of such failure.  If for any reason the foregoing
indemnification is unavailable to any Indemnified Person or insufficient to
hold harmless any Indemnified Person, then Counterparty shall contribute, to
the maximum extent permitted by law, to the amount paid or payable by the
Indemnified Person as a result of such loss, claim, damage or liability.  In addition, Counterparty will reimburse any
Indemnified Person for all reasonable expenses (including reasonable counsel
fees and expenses) as they are incurred (after notice to Counterparty) in
connection with the investigation of, preparation for or defense or settlement
of any pending or threatened claim or any action, suit or proceeding (including
any governmental or regulatory investigation) arising therefrom, whether or not
such Indemnified Person is a party thereto and whether or not such claim,
action, suit or proceeding is initiated or brought by or on behalf of Counterparty.  This indemnity shall survive the completion
of the Transaction contemplated by this Confirmation and any assignment and
delegation of the Transaction made pursuant to this Confirmation or the
Agreement shall inure to the benefit of any permitted assignee of Dealer.  Issuer will not be liable under this
indemnity provision to the extent any loss, claim, damage, liability or expense
is found in a final judgment by a court to have resulted from Dealer’s gross negligence
or willful misconduct.

 

8.             Transfer
or Assignment.  Neither party may
transfer any of its rights or obligations under this Transaction without the
prior written consent of the non-transferring party (such consent not to be
unreasonably withheld); provided that if at any time the Equity Percentage
exceeds 9%, Dealer may immediately, in its sole discretion, transfer or assign
a number of Options sufficient to reduce the Equity Percentage to 8.5% to any
affiliate of Dealer whose obligations are guaranteed by Morgan Stanley, or any third party with (or with a
guarantor (a “Third Party Guarantor”) that has) a rating for its long-term,
unsecured and unsubordinated indebtedness of A- or better by
Standard & Poor’s Ratings Services or its successor (“S&P”), or A3
or better by Moody’s Investors Service, Inc. (“Moody’s”) or, if either
S&P or Moody’s ceases to rate such debt, at least an equivalent rating or
better by a substitute agency rating mutually agreed by Counterparty and
Dealer; provided however such Third Party Guarantor shall provide a guarantee
in a form reasonably satisfactory to the Counterparty in connection with such
transfer or assignment.  If, in the
discretion of Dealer, Dealer is unable to effect such transfer or assignment
after its commercially reasonable efforts on pricing terms reasonably
acceptable to Dealer, Dealer may designate any Scheduled Trading Day as an
Early Termination Date and an Additional Termination Date shall be deemed to
occur with respect to a portion (the “Terminated Portion”) of this Transaction, allocated to
Components as Dealer determines in its discretion, such that the Equity
Percentage following such partial termination will be equal to or less than
8.5%.  In the event that Dealer so
designates an Early Termination Date with respect to a portion of this Transaction,
a payment shall be made pursuant to Section 6 of the Agreement as if
(i) an Early Termination Date had been designated in respect of a
Transaction having terms identical to this Transaction and a Number of Options
equal to the Terminated Portion, (ii) Counterparty shall be the Affected
Party with respect to such partial termination and (iii) such portion of
this Transaction shall be the only Affected Transaction.  The “Equity Percentage” as of any day is the fraction (A) the
numerator of which is the number of Shares that Dealer or any of its affiliates
that are subject to aggregation with Dealer beneficially own (within the
meaning of Section 13 of the Exchange Act) on such day and (B) the
denominator of which is the number of Shares outstanding on such day.  Notwithstanding Section 7 of the
Agreement, Counterparty may assign its rights and obligations under this
Transaction, in whole or in part, on terms reasonably acceptable to both
parties, without any payment being owed from Counterparty to Dealer.

 

9.             Extension
of Settlement.   Dealer may divide
any Component into additional Components and designate the Expiration Date, the
Final Disruption Date and the Number of Options for each such Component if
Dealer determines, in its reasonable discretion, that such further division is
necessary or advisable to preserve Dealer’s hedging activity hereunder in light
of existing liquidity conditions or to enable Dealer to effect purchases of
Shares in connection with its hedging activity hereunder in a manner that
would, if Dealer were Counterparty or an affiliated purchaser of Counterparty,
be compliant with applicable legal and regulatory requirements.

 

10.           Early
Termination Right.  Counterparty may
elect to terminate this Transaction, in whole or in part, prior to the relevant
Expiration Date, on terms acceptable to both parties, and, if such termination
occurs following the payment of the premiums for all Components, without any
payment being owed from Counterparty to Dealer.

 

11

 

11.           Equity
Rights.  Dealer acknowledges and
agrees that this Confirmation is not intended to convey to it rights with
respect to the Transaction that are senior to the claims of common stockholders
in the event of Counterparty’s bankruptcy. 
For the avoidance of doubt, the parties agree that the preceding
sentence shall not apply at any time other than during Counterparty’s
bankruptcy to any claim arising as a result of a breach by Counterparty of any
of its obligations under this Confirmation or the Agreement.  For the avoidance of doubt, the parties
acknowledge that this Confirmation is not secured by any collateral that would
otherwise secure the obligations of Counterparty herein under or pursuant to
any other agreement.

 

12.           Alternative
Calculations and Payment on Early Termination and on Certain Extraordinary
Events.  If Dealer shall owe
Counterparty any amount pursuant to Section 12.2 of the Equity Definitions
and “Consequences of Merger Events” above, or Sections 12.3, 12.6, 12.7 or 12.9
of the Equity Definitions (except in the event of a Tender Offer or a Merger
Event, in each case, in which the consideration or proceeds to be paid to
holders of Shares consists solely of cash) or pursuant to
Section 6(d)(ii) of the Agreement (except in the event of an Event of
Default in which Counterparty is the Defaulting Party or a Termination Event in
which Counterparty is the Affected Party, that resulted from an event or events
within Counterparty’s control) (a “Payment Obligation”), Counterparty
shall have the right, in its sole discretion, to require Dealer to satisfy any
such Payment Obligation by the Share Termination Alternative (as defined below)
by giving irrevocable telephonic notice to Dealer, confirmed in writing within
one Scheduled Trading Day, between the hours of 9:00 A.M. and
4:00 P.M. New York City time on the Merger Date, Tender Offer Date,
Announcement Date, Early Termination Date or other date of termination, as
applicable (“Notice of Share Termination”).  Within a commercially reasonable period of
time following receipt of a Notice of Share Termination, Dealer shall deliver
to Counterparty a number of Share Termination Delivery Units having a cash
value equal to the amount of such Payment Obligation (such number of Share
Termination Delivery Units to be delivered to be determined by the Calculation
Agent as the number of whole Share Termination Delivery Units that could be
purchased over a commercially reasonable period of time with the cash
equivalent of such payment obligation) (the “Share Termination Alternative”).

 

	
  Share Termination
  Delivery Unit:

  	
   

  	
  In the case of a
  Termination Event, Event of Default, Delisting or Additional Disruption
  Event, one Share or, in the case of an Insolvency, Nationalization, Merger
  Event or Tender Offer, one Share or a unit consisting of the number or amount
  of each type of property received by a holder of one Share (without
  consideration of any requirement to pay cash or other consideration in lieu
  of fractional amounts of any securities) in such Insolvency, Nationalization,
  Merger Event or Tender Offer. If such Insolvency, Nationalization, Merger
  Event or Tender Offer involves a choice of consideration to be received by
  holders, such holder shall be deemed to have elected to receive the maximum
  possible amount of cash.

  
	
   

  	
   

  	
   

  
	
  Failure to Deliver:

  	
   

  	
  Applicable

  
	
   

  	
   

  	
   

  
	
  Other applicable provisions:

  	
   

  	
  If Share Termination Alternative is applicable, the
  provisions of Sections 9.8, 9.9, 9.10, 9.11 and 9.12 of the Equity
  Definitions will be applicable as if Physical Settlement applied to the
  termination of the Transaction, except that all references to “Shares” shall
  be read as references to “Share Termination Delivery Units”; and provided that the Representation and
  Agreement contained in Section 9.11 of the Equity Definitions shall be
  modified by excluding any representations therein relating to restrictions,
  obligations, limitations or requirements under applicable securities laws as
  a result of the fact that Buyer is the issuer of any Share Termination Delivery
  Units (or any part thereof).

  

 

13.           Set-Off.  The parties agree to amend Section 6 of
the Agreement by replacing Section 6(f) in its entirety with the
following:

 

“(f)  Upon the occurrence of an Event of Default
or Termination Event with respect to a party who is the Defaulting Party or the
Affected Party (“X”), the other party (“Y”) will have the right
(but not be obliged) without prior notice to X or any other person to set-off
or apply any obligation of X under an Equity Contract owed to Y (or any
Affiliate of Y) (whether or not matured or contingent and whether or not
arising under the Agreement, and regardless of the currency, place of payment
or booking office of the obligation) against any obligation of Y (or any
Affiliate of Y) 

 

12

 

under an Equity Contract owed to X (whether or not
matured or contingent and whether or not arising under the Agreement, and
regardless of the currency, place of payment or booking office of the
obligation).  Y will give notice to the
other party of any set-off effected under this Section 6(f).

 

“Equity Contract” shall mean for purposes of
this Section 6(f) any transaction relating to Shares between X and Y
(or any Affiliate of Y) that qualifies as ‘equity’ under applicable accounting
rules.

 

Amounts (or the relevant portion of such amounts)
subject to set-off may be converted by Y into the Termination Currency at the
rate of exchange at which such party would be able, acting in a reasonable
manner and in good faith, to purchase the relevant amount of such currency.

 

If any obligation is unascertained, Y may in good
faith estimate that obligation and set-off in respect of the estimate, subject
to the relevant party accounting to the other when the obligation is ascertained.

 

Nothing in this Section 6(f) shall be
effective to create a charge or other security interest.  This Section 6(f) shall be without
prejudice and in addition to any right of set-off, combination of accounts,
lien or other right to which any party is at any time otherwise entitled
(whether by operation of law, contract or otherwise).”

 

14.           Amendment
to Equity Definitions.  Solely for
purposes of applying the Equity Definitions and for purposes of this
Confirmation, any reference in the Equity Definitions to a Strike Price shall
be deemed to be a reference to either of the Strike Price or the Cap Price, or
both, as appropriate.

 

15.           Disclosure.  Effective from the date of commencement of
discussions concerning the Transaction, Counterparty and each of its employees,
representatives, or other agents may disclose to any and all persons, without
limitation of any kind, the tax treatment and tax structure of the Transaction
and all materials of any kind (including opinions or other tax analyses) that
are provided to Counterparty relating to such tax treatment and tax structure.

 

16.           Unwind.  In the event the sale of the Convertible
Notes is not consummated with the initial purchasers pursuant to the
Underwriting Agreement, for any reason by the close of business in New York on April 15,
2009 (or such later
date as agreed upon by the parties which in no event shall be later than the
third Scheduled Trading Day following April 15, 2009) (such date or such later date as agreed
upon being the “Accelerated Unwind Date”), this Transaction shall
automatically terminate (the “Accelerated Unwind”) on the Accelerated
Unwind Date and (i) this Transaction and all of the respective rights and
obligations of Dealer and Counterparty under this Transaction shall be
cancelled and terminated and (ii) each party shall be released and
discharged by the other party from and agrees not to make any claim against the
other party with respect to any obligations or liabilities of the other party
arising out of and to be performed in connection with this Transaction either
prior to or after the Accelerated Unwind Date; provided that Counterparty shall
reimburse Dealer for any costs or expenses (including market losses) relating
to the unwinding of its hedging activities in connection with the Transaction
(including any loss or cost incurred as a result of its terminating,
liquidating, obtaining or reestablishing any hedge or related trading position),
which shall be paid in cash or Shares at the option of the Counterparty (and if
paid in Shares, with the market valuation of such Shares being determined in a
commercially reasonable manner by the Calculation Agent).  The
amount of any such reimbursement shall be determined by Dealer in its sole good
faith discretion.  Dealer shall notify
Counterparty of such amount and Counterparty shall pay such amount in
immediately available funds on the Early Unwind Date.  Dealer and Counterparty represent and
acknowledge to the other that upon an Accelerated Unwind and the satisfaction
of counterparty’s payment obligation, if any, as specified in this
Section 16, all obligations with respect to this Transaction shall be
deemed fully and finally discharged.

 

13

 

17.           Additional
Provisions.  Counterparty understands
and agrees that Agent will act as agent for both parties with respect to the
Transaction.  Agent is so acting solely
in its capacity as agent for Counterparty and Dealer pursuant to instructions
from Counterparty and Dealer.  Agent
shall have no responsibility or personal liability to either party arising from
any failure by either party to pay or perform any obligation under the
Transaction.  Each party agrees to
proceed solely against the other to collect or recover any amount owing to it
or enforce any of its rights in connection with or as a result of the
Transaction.

 

Notwithstanding
any provisions of the Agreement, all communications relating to the Transaction
or the Agreement shall be transmitted exclusively through Agent at Morgan Stanley Bank, N.A., 750 Seventh Avenue,
29th Floor, New York, New York 10019.

 

18.           No
Collateral by Counterparty.  No collateral is required to be posted by Counterparty in respect of
this Transaction.

 

19.           Disposition
of Hedge Shares.  Counterparty hereby
agrees that if at any time, in the reasonable judgment of counsel for the
Dealer, the Shares acquired by Dealer for the purpose of hedging its
obligations pursuant to the Transaction (other than such Shares, if any, that
are, at the time of such determination, due to be delivered to Counterparty in
connection with a Net Share Settlement of the Transaction) (the “Hedge
Shares”), cannot be sold in the U.S. public market by Dealer without
registration under the Securities Act, Counterparty shall, at its election:
(i) in order to allow Dealer to sell the Hedge Shares in a registered
offering, use its commercially reasonable efforts to make available to Dealer
an effective registration statement under the Securities Act to cover the
resale of such Hedge Shares and (A) enter into an agreement, in form and
substance reasonably satisfactory to Dealer, substantially in the form of an
underwriting agreement for a registered offering, (B) provide accountant’s
“comfort” letters in customary form for registered offerings of equity securities,
(C) provide disclosure opinions of nationally recognized outside counsel
to Counterparty customary in form for registered offerings of equity
securities, (D) provide other customary opinions, certificates and closing
documents customary in form for registered offerings of equity securities and
(E) afford Dealer a reasonable opportunity to conduct a “due diligence”
investigation with respect to Counterparty customary in scope for underwritten
offerings of equity securities; provided, however,
that if Dealer, in its reasonable discretion, is not satisfied with access to
due diligence materials, the results of its due diligence investigation, or the
procedures and documentation for the registered offering referred to above,
then clause (ii) or clause (iii) of this Section 18 shall apply
at the election of Counterparty; (ii) in order to allow Dealer to sell the
Hedge Shares in a private placement, enter into a private placement agreement
substantially similar to private placement purchase agreements customary for
private placements of equity securities, in form and substance reasonably
satisfactory to Dealer, including customary representations, covenants, blue
sky and other governmental filings and/or registrations, indemnities to Dealer,
due diligence rights (for Dealer or any designated buyer of the Hedge Shares
from Dealer), opinions and certificates and such other documentation as is
customary for private placements agreements, all reasonably acceptable to
Dealer (in which case, the Calculation Agent shall make any adjustments to the
terms of the Transaction that are necessary, in its reasonable judgment, to
compensate Dealer for any discount from the public market price of the Shares
incurred on the sale of Hedge Shares in a private placement); or (iii) purchase
the Hedge Shares from Dealer at the VWAP Price on such Exchange Business Days,
and in the amounts, as requested by Dealer.

 

20.           Opinion
of Counsel.  Counterparty shall
deliver an opinion of counsel, dated as of the Trade Date, in substantially the
form attached hereto as Annex B.

 

21.           Waiver
of Trial by Jury.  EACH OF COUNTERPARTY AND DEALER HEREBY IRREVOCABLY WAIVES (ON ITS OWN
BEHALF AND, TO THE EXTENT PERMITTED BY APPLICABLE LAW, ON BEHALF OF ITS
STOCKHOLDERS) ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR
COUNTERCLAIM (WHETHER BASED ON CONTRACT, TORT OR OTHERWISE) ARISING OUT OF OR
RELATING TO THE TRANSACTION OR THE ACTIONS OF DEALER OR ITS AFFILIATES OR
COUNTERPARTY OR ITS AFFILIATES IN THE NEGOTIATION, PERFORMANCE OR ENFORCEMENT
HEREOF.

 

14

 

22.           Governing
Law.  THE
AGREEMENT AND  THIS CONFIRMATION SHALL BE
GOVERNED BY THE LAWS OF THE STATE OF NEW YORK. 
THE PARTIES HERETO IRREVOCABLY SUBMIT TO THE EXCLUSIVE JURISDICTION OF
THE COURTS OF THE STATE OF NEW YORK AND THE UNITED STATES COURT FOR THE
SOUTHERN DISTRICT OF NEW YORK IN CONNECTION WITH ALL MATTERS RELATING HERETO
AND WAIVE ANY OBJECTION TO THE LAYING OF VENUE IN, AND ANY CLAIM OF
INCONVENIENT FORUM WITH RESPECT TO, THESE COURTS.

 

23.           Regulatory
Provisions.  Counterparty
represents and warrants that it has received and read and understands the
Notice of Regulatory Treatment and the OTC Option Risk Disclosure
Statement.  Agent will furnish
Counterparty upon written request a statement as to the source and amount of
any remuneration received or to be received by Agent in connection with the
Transaction evidenced hereby.

 

24.           Role  of
Agent.   (i) Agent is acting as agent for Dealer
but does not guarantee the performance of Dealer or Counterparty;
(ii) Dealer is not a member of the Securities Investor Protection
Corporation; (iii) Agent, Dealer and Counterparty each hereby acknowledges
that any transactions by Dealer or Agent in the Shares will be undertaken by
Dealer as principal for its own account; and (iv) all of the actions to be
taken by Dealer and Agent in connection with the Transaction shall be taken by
Dealer or Agent independently and without any advance or subsequent
consultation with Counterparty; and (v) Agent is hereby authorized to act
as agent for Counterparty only to the extent required to satisfy the
requirements of Rule 15a-6 under the Exchange Act in respect of the
Transaction described hereby.

 

25.           Guarantee.  
On or prior to the Effective Date, Dealer shall deliver to Counterparty
an executed copy of a guarantee in the form attached hereto as Annex C.

 

15

 

Counterparty
hereby agrees (a) to check this Confirmation carefully and immediately
upon receipt so that errors or discrepancies can be promptly identified and
rectified and (b) to confirm that the foregoing (in the exact form
provided by Dealer) correctly sets forth the terms of the agreement between
Dealer and Counterparty with respect to this Transaction, by manually signing
this Confirmation or this page hereof as evidence of agreement to such
terms and providing the other information requested herein and immediately
returning an executed copy to Agent at Morgan Stanley Bank, N.A., 750 Seventh Avenue, 29th Floor,
New York, New York 10019.

 

	
   

  	
  Yours
  faithfully,

  
	
   

  	
   

  	
   

  
	
   

  	
  Morgan Stanley & Co. International plc

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ Rachel Patel

  
	
   

  	
   

  	
  Name:

  	
  Rachel Patel

  
	
   

  	
   

  	
  Title:

  	
  Executive
  Director

  
	
   

  	
   

  	
   

  
	
   

  	
  Morgan
  Stanley Bank, N.A.,
  as agent

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ Susan E. Carroll

  
	
   

  	
   

  	
  Name:

  	
  Susan E. Carroll

  
	
   

  	
   

  	
  Title:

  	
  CEO

  
	
   

  	
   

  	
   

  

Agreed and
Accepted By:

 

MICRON
TECHNOLOGY, INC.

 

 

	
  By:

  	
  /s/
  Ronald C. Foster

  	
   

  
	
   

  	
  Name:
  

  	
  Ronald
  C. Foster

  	
   

  
	
   

  	
  Title:

  	
  Vice
  President of Finance and

  	
   

  
	
   

  	
   

  	
  Chief
  Financial Officer

  	
   

  

 

[Confirmation Signature Page]

 

 

ANNEX A

 

	
  Component

  	
   

  	
  Number of Options per

  Component

  	
   

  	
  Premium per

  Component

  	
   

  	
  Expiration Date

  	
   

  
	
  1

  	
   

  	
  550,774

  	
   

  	
  $

  	
  301,000.00

  	
   

  	
  10/16/2012

  	
   

  
	
  2

  	
   

  	
  550,774

  	
   

  	
  $

  	
  301,000.00

  	
   

  	
  10/17/2012

  	
   

  
	
  3

  	
   

  	
  550,774

  	
   

  	
  $

  	
  301,000.00

  	
   

  	
  10/18/2012

  	
   

  
	
  4

  	
   

  	
  550,774

  	
   

  	
  $

  	
  301,000.00

  	
   

  	
  10/19/2012

  	
   

  
	
  5

  	
   

  	
  550,774

  	
   

  	
  $

  	
  301,000.00

  	
   

  	
  10/22/2012

  	
   

  
	
  6

  	
   

  	
  550,774

  	
   

  	
  $

  	
  301,000.00

  	
   

  	
  10/23/2012

  	
   

  
	
  7

  	
   

  	
  550,774

  	
   

  	
  $

  	
  301,000.00

  	
   

  	
  10/24/2012

  	
   

  
	
  8

  	
   

  	
  550,774

  	
   

  	
  $

  	
  301,000.00

  	
   

  	
  10/25/2012

  	
   

  
	
  9

  	
   

  	
  550,774

  	
   

  	
  $

  	
  301,000.00

  	
   

  	
  10/26/2012

  	
   

  
	
  10

  	
   

  	
  550,774

  	
   

  	
  $

  	
  301,000.00

  	
   

  	
  10/29/2012

  	
   

  
	
  11

  	
   

  	
  550,774

  	
   

  	
  $

  	
  301,000.00

  	
   

  	
  10/30/2012

  	
   

  
	
  12

  	
   

  	
  550,774

  	
   

  	
  $

  	
  301,000.00

  	
   

  	
  10/31/2012

  	
   

  
	
  13

  	
   

  	
  550,774

  	
   

  	
  $

  	
  301,000.00

  	
   

  	
  11/1/2012

  	
   

  
	
  14

  	
   

  	
  550,774

  	
   

  	
  $

  	
  301,000.00

  	
   

  	
  11/2/2012

  	
   

  
	
  15

  	
   

  	
  550,774

  	
   

  	
  $

  	
  301,000.00

  	
   

  	
  11/5/2012

  	
   

  
	
  16

  	
   

  	
  550,774

  	
   

  	
  $

  	
  301,000.00

  	
   

  	
  11/6/2012

  	
   

  
	
  17

  	
   

  	
  550,774

  	
   

  	
  $

  	
  301,000.00

  	
   

  	
  11/7/2012

  	
   

  
	
  18

  	
   

  	
  550,774

  	
   

  	
  $

  	
  301,000.00

  	
   

  	
  11/8/2012

  	
   

  
	
  19

  	
   

  	
  550,774

  	
   

  	
  $

  	
  301,000.00

  	
   

  	
  11/9/2012

  	
   

  
	
  20

  	
   

  	
  550,774

  	
   

  	
  $

  	
  301,000.00

  	
   

  	
  11/12/2012

  	
   

  
	
  21

  	
   

  	
  550,774

  	
   

  	
  $

  	
  301,000.00

  	
   

  	
  11/13/2012

  	
   

  
	
  22

  	
   

  	
  550,774

  	
   

  	
  $

  	
  301,000.00

  	
   

  	
  11/14/2012

  	
   

  
	
  23

  	
   

  	
  550,774

  	
   

  	
  $

  	
  301,000.00

  	
   

  	
  11/15/2012

  	
   

  
	
  24

  	
   

  	
  550,774

  	
   

  	
  $

  	
  301,000.00

  	
   

  	
  11/16/2012

  	
   

  
	
  25

  	
   

  	
  550,788

  	
   

  	
  $

  	
  301,000.00

  	
   

  	
  11/19/2012

  	
   

  

 

	
  Aggregate Premium for all
  Components

  	
   

  
	
  $

  	
  7,525,000.00

  	
   

  
			

 

 

Schedule
(as contemplated by the confirmation dated April 8, 2008 between Micron
Technology, Inc. and Morgan Stanley & Co. International plc for
issuer capped share call option transaction (the “Confirmation”))
setting forth the increased Number of Options for all Components upon
the exercise of the option to purchase additional 4.25%
Convertible Senior Notes due October 15, 2013 pursuant to Section 2
of the Underwriting Agreement (as defined in the Confirmation).

 

	
  Component

  	
   

  	
  Number of Options per

  Component

  	
   

  	
  Premium per

  Component

  	
   

  	
  Expiration Date

  	
   

  
	
  1

  	
   

  	
  633,390

  	
   

  	
  $

  	
  346,150.00

  	
   

  	
  10/16/2012

  	
   

  
	
  2

  	
   

  	
  633,390

  	
   

  	
  $

  	
  346,150.00

  	
   

  	
  10/17/2012

  	
   

  
	
  3

  	
   

  	
  633,390

  	
   

  	
  $

  	
  346,150.00

  	
   

  	
  10/18/2012

  	
   

  
	
  4

  	
   

  	
  633,390

  	
   

  	
  $

  	
  346,150.00

  	
   

  	
  10/19/2012

  	
   

  
	
  5

  	
   

  	
  633,390

  	
   

  	
  $

  	
  346,150.00

  	
   

  	
  10/22/2012

  	
   

  
	
  6

  	
   

  	
  633,390

  	
   

  	
  $

  	
  346,150.00

  	
   

  	
  10/23/2012

  	
   

  
	
  7

  	
   

  	
  633,390

  	
   

  	
  $

  	
  346,150.00

  	
   

  	
  10/24/2012

  	
   

  
	
  8

  	
   

  	
  633,390

  	
   

  	
  $

  	
  346,150.00

  	
   

  	
  10/25/2012

  	
   

  
	
  9

  	
   

  	
  633,390

  	
   

  	
  $

  	
  346,150.00

  	
   

  	
  10/26/2012

  	
   

  
	
  10

  	
   

  	
  633,390

  	
   

  	
  $

  	
  346,150.00

  	
   

  	
  10/29/2012

  	
   

  
	
  11

  	
   

  	
  633,390

  	
   

  	
  $

  	
  346,150.00

  	
   

  	
  10/30/2012

  	
   

  
	
  12

  	
   

  	
  633,390

  	
   

  	
  $

  	
  346,150.00

  	
   

  	
  10/31/2012

  	
   

  
	
  13

  	
   

  	
  633,390

  	
   

  	
  $

  	
  346,150.00

  	
   

  	
  11/1/2012

  	
   

  
	
  14

  	
   

  	
  633,390

  	
   

  	
  $

  	
  346,150.00

  	
   

  	
  11/2/2012

  	
   

  
	
  15

  	
   

  	
  633,390

  	
   

  	
  $

  	
  346,150.00

  	
   

  	
  11/5/2012

  	
   

  
	
  16

  	
   

  	
  633,390

  	
   

  	
  $

  	
  346,150.00

  	
   

  	
  11/6/2012

  	
   

  
	
  17

  	
   

  	
  633,390

  	
   

  	
  $

  	
  346,150.00

  	
   

  	
  11/7/2012

  	
   

  
	
  18

  	
   

  	
  633,390

  	
   

  	
  $

  	
  346,150.00

  	
   

  	
  11/8/2012

  	
   

  
	
  19

  	
   

  	
  633,390

  	
   

  	
  $

  	
  346,150.00

  	
   

  	
  11/9/2012

  	
   

  
	
  20

  	
   

  	
  633,390

  	
   

  	
  $

  	
  346,150.00

  	
   

  	
  11/12/2012

  	
   

  
	
  21

  	
   

  	
  633,390

  	
   

  	
  $

  	
  346,150.00

  	
   

  	
  11/13/2012

  	
   

  
	
  22

  	
   

  	
  633,390

  	
   

  	
  $

  	
  346,150.00

  	
   

  	
  11/14/2012

  	
   

  
	
  23

  	
   

  	
  633,390

  	
   

  	
  $

  	
  346,150.00

  	
   

  	
  11/15/2012

  	
   

  
	
  24

  	
   

  	
  633,390

  	
   

  	
  $

  	
  346,150.00

  	
   

  	
  11/16/2012

  	
   

  
	
  25

  	
   

  	
  633,409

  	
   

  	
  $

  	
  346,150.00

  	
   

  	
  11/19/2012

  	
   

  

 

	
  Aggregate Premium for all
  Components

  	
   

  
	
  $

  	
   8,653,750.00

  	
   

  
			

 

 

ANNEX B

 

Form of Opinion

 

1.                                       The Company has
been duly incorporated and is an existing corporation in good standing under
the laws of the State of Delaware.

 

2.                                       The Company is
duly qualified as a foreign corporation for the transaction of business and is
in good standing in the State of Idaho.

 

3.                                       The
Confirmation has been duly authorized, executed and delivered by the Company.

 

4.                                       The execution
and delivery by the Company of the Confirmation does not result in any
violation by the Company of the Certificate of Incorporation or the Bylaws.

 

 

ANNEX C

 

Form of Guarantee

 

	
  

  	
   

  	
  1585
  BROADWAY

  NEW YORK, NY 10036-8293

  

 

April 8, 2009

 

	
  To:

  	
   

  	
  Micron
  Technology, Inc.

  
	
   

  	
   

  	
  8000
  S. Federal Way

  
	
   

  	
   

  	
  Boise,
  Idaho 83716-9632

  

 

Ladies
and Gentlemen:

 

In
consideration of that certain trade dated as of April 8, 2009 Confirm Number by and between Morgan Stanley & Co.
International plc (hereinafter “MS International”) and Micron Technology, Inc.
(hereinafter “Counterparty”) (such confirmation exchanged between the parties
hereinafter the “Confirmation”), Morgan Stanley, a Delaware corporation
(hereinafter “MS”), hereby irrevocably and unconditionally guarantees to
Counterparty, with effect from the date of the Confirmation, the due and
punctual payment of all amounts payable by MS International under the
Confirmation when the same shall become due and payable, whether on scheduled
payment dates, upon demand, upon declaration of termination or otherwise, in
accordance with the terms of the Confirmation and giving effect to any
applicable grace period.  Upon failure of
MS International punctually to pay any such
amounts, and upon written demand by Counterparty to MS at its address set forth
in the signature block of this Guarantee (or to such other address as MS may
specify in writing), MS agrees to pay or cause to be paid such amounts;
provided that delay by Counterparty in giving such demand shall in no event
affect MS’s obligations under this Guarantee.

 

MS
hereby agrees that its obligations hereunder shall be unconditional and will
not be discharged except by complete payment of the amounts payable under the
Confirmation, irrespective of any claim as to the Confirmation’s validity,
regularity or enforceability or the lack of authority of MS International to execute or deliver the Confirmation; or any
change in or amendment to the Confirmation; or any waiver or consent by Counterparty
with respect to any provisions thereof; or the absence of any action to enforce
the Confirmation, or the recovery of any judgment against MS International or of any action to enforce a judgment against MS International under the Confirmation; any similar circumstance
which might otherwise constitute a legal or equitable discharge or defense of a
guarantor generally.

 

MS
hereby waives diligence, presentment, demand on MS
International for payment or otherwise (except as provided
hereinabove), filing of claims, requirement of a prior proceeding against MS International and protest or notice, except as provided for in
the Confirmation with respect to amounts payable by MS International.  If at any
time payment under the Confirmation is rescinded or must be otherwise restored
or returned by Counterparty upon the insolvency, bankruptcy or reorganization
of MS International or MS or otherwise, MS’s
obligations hereunder with respect to such payment shall be reinstated upon
such restoration or return being made by Counterparty.

 

MS
represents to Counterparty as of the date hereof:

 

1.             it is duly organized and validly
existing under the laws of the jurisdiction of its incorporation and has full
power and legal right to execute and deliver this Guarantee and to perform the
provisions of this Guarantee on its part to be performed;

 

2.             its execution, delivery and
performance of this Guarantee have been and remain duly authorized by all
necessary corporate action and do not contravene any provision of its
certificate of incorporation or by-laws or any law, regulation or contractual
restriction binding on it or its assets;

 

 

3.             all consents, authorizations,
approvals and clearances (including, without limitation, any necessary exchange
control approval) and notifications, reports and registrations requisite for
its due execution, delivery and performance of this Guarantee have been
obtained from or, as the case may be, filed with the relevant governmental
authorities having jurisdiction and remain in full force and effect and all
conditions thereof have been duly complied with and no other action by, and no
notice to or filing with, any governmental authority having jurisdiction is
required for such execution, delivery or performance; and

 

4.             this Guarantee is its legal, valid
and binding obligation enforceable against it in accordance with its terms
except as enforcement hereof may be limited by applicable bankruptcy,
insolvency, reorganization or other similar laws affecting the enforcement of
creditors’ right or by general equity principles.

 

By
accepting this Guarantee and executing the Confirmation, Counterparty agrees
that MS shall be subrogated to all rights of Counterparty against MS International in respect of any amounts paid by MS pursuant to
this Guarantee, provided that MS shall be entitled to enforce or to receive any
payment arising out of or based upon such right of subrogation only to the
extent that it has paid all amounts payable by MS
International under the Confirmation..

 

This
Guarantee shall expire on the last Expiration Date as defined in the Confirmation, however, this guarantee
may be terminated upon 15 days prior written notice to that effect actually
received by Counterparty.  Such
expiration or termination shall not, however, affect or reduce MS’s obligation
hereunder for any liability of MS
International incurred with respect to transactions entered into
by MS International prior to such expiration.

 

This
Guarantee shall be governed by and construed in accordance with the laws of the
State of New York.  All capitalized terms
not otherwise defined herein shall have the respective meanings assigned to
them in the Confirmation.

 

 

MORGAN
STANLEY

 

 

	
  By:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  	
  Address:

  	
  1585
  Broadway

  	
   

  
	
   

  	
   

  	
   

  	
  New
  York, NY 10036Exhibit
10.3

 

EXECUTION VERSION

 

	
   

  	
  Deutsche
  Bank 

  
	
   

  	
   

  
	
   

  	
  Deutsche Bank AG, London Branch

  
	
   

  	
  Winchester
  house

  
	
   

  	
  1
  Great Winchester St,

  
	
   

  	
  London
  EC2N 2DB

  
	
   

  	
  Telephone:  44 20
  7545 8000

  
	
   

  	
   

  
	
   

  	
  c/o Deutsche
  Bank Securities Inc.

  
	
   

  	
  60 Wall Street

  
	
   

  	
  New York, NY 10005

  
	
   

  	
  Telephone: 212-250-2500

  

 

Opening Transaction

 

	
  Date:

  	
   

  	
  April 8, 2009

  
	
   

  	
   

  	
   

  
	
  To:

  	
   

  	
  Micron
  Technology, Inc.

  8000 S. Federal Way

  Boise, Idaho 83716-9632

  
	
   

  	
   

  	
   

  
	
  From:

  	
   

  	
  Deutsche Bank AG,
  London Branch

  
	
   

  	
   

  	
   

  
	
  Re:

  	
   

  	
  Issuer Capped Share
  Call Option Transaction

  
	
   

  	
   

  	
   

  
	
  Ref. No:

  	
   

  	
  325758

  

 

Dear Sir(s):

 

The purpose of this
communication (this “Confirmation”) is to
set forth the terms and conditions of the above-referenced transaction entered
into on the Trade Date specified below (the “Transaction”)
between Deutsche Bank AG, London Branch  (“Dealer”) and Micron
Technology, Inc.  (“Issuer”
or “Counterparty”).  Dealer is acting as principal and Deutsche
Bank Securities Inc. (“Agent”), its affiliate, is acting as agent for
Dealer and Counterparty for the Transaction under this Confirmation.  This communication constitutes a “Confirmation”
as referred to in the ISDA Master Agreement specified below.  This Confirmation is a confirmation for
purposes of Rule 10b-10 promulgated under the Securities Exchange Act of
1934, as amended (the “Exchange Act”).

 

DEUTSCHE BANK AG IS NOT
REGISTERED AS A BROKER OR DEALER UNDER THE U.S. SECURITIES EXCHANGE ACT OF
1934, AS AMENDED.  DEUTSCHE BANK
SECURITIES INC. HAS ACTED SOLELY AS AGENT IN CONNECTION WITH THE TRANSACTION
AND HAS NO OBLIGATION, BY WAY OF ISSUANCE, ENDORSEMENT, GUARANTEE OR OTHERWISE
WITH RESPECT TO THE PERFORMANCE OF EITHER PARTY UNDER THE TRANSACTION.  DEUTSCHE BANK AG, LONDON BRANCH IS NOT A
MEMBER OF THE SECURITIES INVESTOR PROTECTION CORPORATION (SIPC).

 

1.               This Confirmation is subject to, and incorporates, the
definitions and provisions of the 2000 ISDA Definitions (including the Annex
thereto) (the “2000 Definitions”) and the
definitions and provisions of the 2002 ISDA Equity Derivatives Definitions (the
“Equity Definitions”, and together with
the 2000 Definitions, the “Definitions”),
in each case as published by the International Swaps and Derivatives
Association, Inc. (“ISDA”).  In the event of any inconsistency between the
2000 Definitions and the Equity Definitions, the Equity Definitions will
govern.

 

Chairman of the Supervisory Board: Clemens Börsig Board of Managing
Directors: Hermann-Josef Lamberti, Josef Ackermann, Anthony DiIorio, Hugo
Banziger

 

Deutsche Bank AG is
regulated by the FSA for the conduct of designated investment business in the
UK, is a member of the London Stock Exchange and is a limited liability company
incorporated in the Federal Republic of Germany HRB No. 30 000 District Court
of Frankfurt am Main; Branch Registration No. in England and Wales BR000005, Registered
address: Winchester House, 1 Great Winchester Street, London EC2N 2DB.

 

 

Each party is hereby
advised, and each such party acknowledges, that the other party has engaged in,
or refrained from engaging in, substantial financial transactions and has taken
other material actions in reliance upon the parties’ entry into the Transaction
to which this Confirmation relates on the terms and conditions set forth below.

 

This Confirmation
evidences a complete and binding agreement between Dealer and Counterparty as
to the terms of the Transaction to which this Confirmation relates.  This Confirmation shall be subject to an
agreement (the “Agreement”) in the form of the 2002 ISDA Master
Agreement as if Dealer and Counterparty had executed an agreement in such form
on the date hereof (but without any Schedule except for (i) New York law
(without regard to the conflicts of law principles) as the governing law and
(ii) US Dollars (“USD”) as the
Termination Currency).  The parties
hereby agree that no Transactions other than the Transaction to which this
Confirmation relates shall be governed by the Agreement.

 

All
provisions contained in, or incorporated by reference to, the Agreement will
govern this Confirmation except as expressly modified herein.  In the event of any inconsistency between
this Confirmation and the Definitions or the Agreement, as the case may be,
this Confirmation shall govern.

 

2.               This Transaction constitutes a
Share Option Transaction for purposes of the Equity Definitions.  The terms of the particular Transaction to
which this Confirmation relates are as follows:

 

General Terms:

 

	
  Trade Date:

  	
   

  	
  April 8, 2009

  
	
   

  	
   

  	
   

  
	
  Components:

  	
   

  	
  The Transaction will be
  divided into individual Components, each with the terms set forth in this
  Confirmation, and, in particular, with the Number of Options and Expiration
  Date set forth in Annex A to this Confirmation.  The exercise, valuation and settlement of
  the Transaction will be effected separately for each Component as if each
  Component were a separate Transaction under the Agreement.

  
	
   

  	
   

  	
   

  
	
  Option Style:

  	
   

  	
  European

  
	
   

  	
   

  	
   

  
	
  Option Type:

  	
   

  	
  Call

  
	
   

  	
   

  	
   

  
	
  Seller:

  	
   

  	
  Dealer

  
	
   

  	
   

  	
   

  
	
  Buyer:

  	
   

  	
  Counterparty

  
	
   

  	
   

  	
   

  
	
  Shares:

  	
   

  	
  Common Stock (par value
  $0.10 per Share) of  Counterparty
  (Ticker: “MU”)

  
	
   

  	
   

  	
   

  
	
  Number of Options:

  	
   

  	
  For each Component, as provided
  in Annex A to this Confirmation; provided that
  if Morgan Stanley & Co. Incorporated and Goldman, Sachs & Co., as
  representatives of the Underwriters named in the Underwriting Agreement dated
  April 8, 2009 between Counterparty and Morgan Stanley & Co.
  Incorporated and
  Goldman, Sachs & Co. (the “Underwriting Agreement”), exercise
  the option to purchase additional 4.25% Convertible Senior Notes due
  October 15, 2013 (“Additional Convertible Notes”) pursuant to
  Section 2 of the Underwriting Agreement, the Number of Options for each
  Component shall be automatically increased, effective upon payment by
  Counterparty of the Additional Premium on the Additional Premium Payment
  Date, by a number of Options equal to the product of (x) the Number of
  Options for such Component as set forth in Annex A to this Confirmation and
  (y) a fraction, the numerator of which is the number of Additional

  

 

2

 

	
   

  	
   

  	
  Convertible Notes in
  denominations of USD1,000 principal amount issued pursuant to such exercise
  and the denominator of which is the number of Convertible Notes in
  denominations of USD1,000 principal amount issued prior to such exercise,
  subject to rounding as deemed appropriate by the Calculation Agent, and
  Calculation Agent will promptly provide Counterparty and Dealer a schedule
  setting forth the increased Number of Options for all Components.

  
	
   

  	
   

  	
   

  
	
  Option Entitlement:

  	
   

  	
  One Share per Option

  
	
   

  	
   

  	
   

  
	
  Strike Price:

  	
   

  	
  5.08375

  
	
   

  	
   

  	
   

  
	
  Cap Price:

  	
   

  	
  6.64000

  
	
   

  	
   

  	
   

  
	
  Premium:

  	
   

  	
  The premium for each
  Component shall be as provided in Annex A to this Confirmation and the
  aggregate Premium for the Transaction is USD4,300,000; provided
  that if the Number of Options is increased pursuant to the proviso to the
  definition of “Number of Options” above, Counterparty shall pay on the
  Additional Premium Payment Date an additional Premium (the “Additional
  Premium”) equal to the product of the number of Options by which the
  aggregate Number of Options for such Components is so increased and
  USD0.5465.  Dealer and Counterparty
  hereby agree that, notwithstanding anything to the contrary herein or in the
  Agreement, following the payment of the Premium (including the Additional
  Premium, if any), in the event that (a) an Early Termination Date
  (whether as a result of an Event of Default or a Termination Event) occurs or
  is designated with respect to any Transaction and, as a result, Counterparty
  owes to Dealer the amount calculated under Section 6(e) of the
  Agreement (calculated as if the Transactions were terminated on such Early
  Termination Date were the sole Transactions under the Agreement) or
  (b) Counterparty owes to Dealer, pursuant to Section 12.7 or
  Section 12.9 or the Equity Definitions, an amount calculated under
  Section 12.8 of the Equity Definitions, such amount shall be deemed to
  be zero.

  
	
   

  	
   

  	
   

  
	
  Premium Payment Date:

  	
   

  	
  The Effective Date

  
	
   

  	
   

  	
   

  
	
  Effective Date:

  	
   

  	
  April 15, 2009 or
  such other date as agreed by the parties.

  
	
   

  	
   

  	
   

  
	
  Additional Premium Payment Date:

  	
   

  	
  The closing date for
  the purchase and sale of the Additional Convertible Notes.

  
	
   

  	
   

  	
   

  
	
  Exchange:

  	
   

  	
  New York Stock Exchange

  
	
   

  	
   

  	
   

  
	
  Related Exchange:

  	
   

  	
  All Exchanges located
  in the United States on which the equity securities or equity-linked
  securities of Counterparty are traded.

  
	
   

  	
   

  	
   

  
	
  Procedures for
  Exercise:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Expiration Time:

  	
   

  	
  Valuation Time

  
	
   

  	
   

  	
   

  
	
  Expiration Date:

  	
   

  	
  As provided in Annex A
  to this Confirmation (or, if such date is not a Scheduled Trading Day, the
  next following Scheduled Trading Day that is not already an Expiration Date
  for another

  

 

3

 

	
   

  	
   

  	
  Component); provided that,
  notwithstanding anything to the contrary in the Equity Definitions, if that
  date is a Disrupted Day, the Calculation Agent may determine that the
  Expiration Date for such Component is a Disrupted Day in whole or in part, in
  which case the Calculation Agent shall, in its reasonable discretion,
  determine the number of Options for which such day shall be the Expiration
  Date and (i) allocate the remaining Options for such Expiration Date to
  one or more of the remaining Expiration Dates, (ii) designate the first
  succeeding Scheduled Trading Day that is not a Disrupted Day and is not or is
  not deemed to be an Expiration Date in respect of any other Component of the
  Transaction hereunder as the Expiration Date for such remaining Options, or
  (iii) a combination thereof; provided further that if the Expiration Date for a
  Component (including any portion of a Component whose Expiration Date was
  postponed as a result of clause (ii) or (iii) above) has not
  occurred as of the Final Disruption Date, (a) such Final Disruption Date
  shall be deemed to be the Expiration Date and Valuation Date for such
  Component, and (b) the Calculation Agent shall determine the VWAP Price
  for such Component on the basis of its good faith estimate of the trading
  value for the relevant Shares. 
  Section 6.6 of the Equity Definitions shall not apply to any
  Valuation Date occurring on an Expiration Date.

  	 

	
   

  	
   

  	
   

  	 

	
  Final Disruption Date:

  	
   

  	
  November 30, 2012

  	 

	
   

  	
   

  	
   

  	 

	
  Market Disruption Event:

  	
   

  	
  Section 6.3(a) of
  the Equity Definitions is hereby amended by replacing clause
  (ii) thereof in its entirety with the following: “(ii) an Exchange
  Disruption, or” and inserting immediately following clause (iii) thereof
  the following: “; in each case that the Calculation Agent determines is
  material.”

  	 

	
   

  	
   

  	
   

  	 

	
  Exchange Business Day; Disrupted Day:

  	
   

  	
  Sections 1.29 and
  6.4 of the Equity Definitions are hereby amended by adding “, unless the
  Calculation Agent reasonably determines that any failure of such Exchange or
  Related Exchange to open does not have a material effect on the trading
  market for the Shares” following the words “regular trading sessions” in the
  third line thereof and the words “regular trading session” in the second line
  thereof, respectively.

  	 

	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Automatic Exercise:

  	
   

  	
  Applicable; and means
  that the Number of Options for the relevant Component will be deemed to be
  automatically exercised at the Expiration Time on the Expiration Date for
  such Component if at such time such Component is In-the-Money, as determined
  by the Calculation Agent, unless Buyer notifies Seller (by telephone or in
  writing) prior to the Expiration Time on such Expiration Date that it does
  not wish Automatic Exercise to occur with respect to such Component, in which
  case Automatic Exercise will not apply with respect to such Component.  “In-the-Money” means, in respect of
  any Component, that the VWAP Price on the Expiration Date for such Component
  is greater than the Strike Price for such Component.

  	
   

  	
   

  

 

4

 

	
  Seller’s Telephone Number and Telex and/or Facsimile
  Number and Contact Details for purpose of Giving Notice:

  	
   

  	
  To be provided by
  Dealer. 

  
	
   

  	
   

  	
   

  
	
  Settlement Terms:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Settlement Method Election:

  	
   

  	
  Applicable; provided that (a) Section 7.1
  of the Equity Definitions is hereby amended by replacing the term “Physical
  Settlement” with the term “Net Share Settlement”, (b) Counterparty must
  make a single irrevocable election for all Components and (c) such
  Settlement Method Election would be effective only if Counterparty represents
  and warrants to Dealer in writing on the date of such Settlement Method
  Election that none of Counterparty and its officers and directors is aware of
  any material nonpublic information regarding Counterparty or the Shares as of
  such date.

  
	
   

  	
   

  	
   

  
	
  Electing Party:

  	
   

  	
  Counterparty

  
	
   

  	
   

  	
   

  
	
  Settlement Method Election Date:

  	
   

  	
  The fifth Scheduled
  Trading Day prior to the scheduled Expiration Date for the first Component.

  
	
   

  	
   

  	
   

  
	
  Default Settlement Method:

  	
   

  	
  Net Share Settlement

  
	
   

  	
   

  	
   

  
	
  Settlement Currency:

  	
   

  	
  USD

  
	
   

  	
   

  	
   

  
	
  VWAP Price:

  	
   

  	
  For any Expiration Date
  or other Exchange Business Day, as displayed on Bloomberg Page “MU.N
  <Equity> AQR” (or any successor thereto) for the Counterparty with
  respect to the period between 9:30 a.m. to 4:00 p.m.  (New York City time) on such day, as
  determined by Calculation Agent.  If no
  price is available, or there is a Market Disruption Event on such Expiration
  Date or other Exchange Business Day, the Calculation Agent shall determine
  the VWAP Price in a commercially reasonable manner.

  
	
   

  	
   

  	
   

  
	
  Net Share Settlement:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Settlement Date:

  	
   

  	
  The Settlement Date
  shall be the third Scheduled Trading Day after the Expiration Date for the
  Component (or, in respect of all or part of its obligation to deliver the Number
  of Shares to be Delivered, such other earlier date or dates Dealer shall
  determine in its sole discretion).

  
	
   

  	
   

  	
   

  
	
  Net Share Settlement:

  	
   

  	
  If Net Share Settlement applies, on the Settlement Date for each
  Component, Dealer shall deliver to Counterparty a number of Shares equal to
  the Number of Shares to be Delivered for such Component to the account
  specified by Counterparty and cash in lieu of any fractional shares for such
  Component valued at the VWAP Price on the Expiration Date for such Component.

  
	
   

  	
   

  	
   

  
	
  Number of Shares to be Delivered:

  	
   

  	
  For any Component,
  subject to the last sentence of Section 9.5 of the Equity Definitions:

  

 

5

 

	
   

  	
   

  	
  (i)  if the
  VWAP Price on the Expiration Date for such Component exceeds the Strike Price
  for such Component but is less than the Cap Price for such Component, a
  number of Shares equal to (i) the product of (A) the excess of such
  VWAP Price over such Strike Price, (B) the Number of Options for such
  Component and (C) the Option Entitlement, divided by
  (ii) such VWAP Price;

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (ii)  if the VWAP Price on the Expiration
  Date for such Component equals or exceeds the Cap Price for such Component, a
  number of Shares equal to (i) the product of (A) the excess of such
  Cap Price over the Strike Price for such Component, (B) the Number of
  Options for such Component and (C) the Option Entitlement, divided by (ii) such VWAP Price; or

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (iii)  if the
  VWAP Price on the Expiration Date for such Component is less than or equal to
  the Strike Price for such Component, a number of Shares equal to zero.

  
	
   

  	
   

  	
   

  
	
  Other Applicable Provisions:

  	
   

  	
  The provisions of
  Sections 9.1(c), 9.8, 9.9, 9.10, 9.11 and 9.12 of the Equity Definitions will
  be applicable, as if Physical Settlement applied to the Transaction; provided that the Representation and
  Agreement contained in Section 9.11 of the Equity Definitions shall be
  modified by excluding any representations therein relating to restrictions,
  obligations, limitations or requirements under applicable securities laws as
  a result of the fact that Counterparty is the issuer of any Shares.

  
	
   

  	
   

  	
   

  
	
  Cash
  Settlement:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Cash Settlement Payment Date:

  	
   

  	
  The Cash Settlement
  Payment Date shall be the third Scheduled Trading Day after the Expiration
  Date for each Component.

  
	
   

  	
   

  	
   

  
	
  Cash Settlement:

  	
   

  	
  If Cash Settlement
  applies, on the relevant Cash Settlement Payment Date for such Component,
  Dealer shall pay to Counterparty an amount equal to the sum of the Option
  Cash Settlement Amount for each Component to the account specified by
  Counterparty.

  
	
   

  	
   

  	
   

  
	
  Strike Price Differential:

  	
   

  	
  For any Component:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (i)  if the
  VWAP Price on the Expiration Date for such Component exceeds the Strike Price
  for such Component but is less than the Cap Price for such Component, an
  amount equal to the excess of such VWAP Price over such Strike Price.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (ii)  if the
  VWAP Price on the Expiration Date for such Component equals or exceeds the
  Cap Price for such Component, an amount equal to the excess of such Cap Price
  over the Strike Price for such Component; or

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (iii)  if the
  VWAP Price on the Expiration Date for such Component is less than or equal to
  the Strike Price for such Component, zero.

  

 

6

 

	
  Share
  Adjustments:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Method of Adjustment:

  	
   

  	
  Calculation Agent
  Adjustment; provided that under Section 11.2(e)(v) of the
  definition of Potential Adjustment Event the word “repurchase” shall be
  replaced with the word “tender offer”.

  
	
   

  	
   

  	
   

  
	
  Extraordinary
  Events:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  New Shares:

  	
   

  	
  In the definition
  of “New Shares” in Section 12.1(i) of the Equity Definitions, the
  text in subsection (i) shall be deleted in its entirety and replaced
  with: “publicly quoted, traded or listed on any of the New York Stock
  Exchange, the NASDAQ Global Select Market or the NASDAQ Global Market (or
  their respective successors)”.

  
	
   

  	
   

  	
   

  
	
  Consequences of Merger
  Events:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  (a)     Share-for-Share:

  	
   

  	
  Modified Calculation
  Agent Adjustment and, for the avoidance of doubt, if the consideration for
  the Shares includes (or, at the option of a holder of Shares, may include)
  shares of an entity or person not organized under the laws of the United
  States, any State thereof or the District of Columbia (“Foreign Issuer
  Shares”), then the Calculation Agent may choose to apply Cancellation and
  Payment (Calculation Agent Determination) to that portion of the
  consideration comprising Foreign Issuer Shares.

  
	
   

  	
   

  	
   

  
	
  (b)     Share-for-Other:

  	
   

  	
  Cancellation and
  Payment (Calculation Agent Determination) on that portion of the Other
  Consideration that consists of cash; Modified Calculation Agent Adjustment on
  the remainder of the Other Consideration and, for the avoidance of doubt, if
  the Other Consideration includes (or, at the option of a holder of Shares,
  may include) Foreign Issuer Shares, then the Calculation Agent may choose to
  apply Cancellation and Payment (Calculation Agent Determination)  to that portion of the Other Consideration
  comprising Foreign Issuer Shares.

  
	
   

  	
   

  	
   

  
	
  (c)     Share-for-Combined:

  	
   

  	
  Component Adjustment

  
	
   

  	
   

  	
   

  
	
  Tender Offer:

  	
   

  	
  Applicable; provided that
  (a) Section 12.1(d) of the Equity Definitions is hereby
  amended by replacing the words “10%” in the third line with “50%”.

  
	
   

  	
   

  	
   

  
	
  Consequences of Tender
  Offers:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  (a)     Share-for-Share:

  	
   

  	
  Modified Calculation
  Agent Adjustment

  
	
   

  	
   

  	
   

  
	
  (b)     Share-for-Other:

  	
   

  	
  Cancellation and
  Payment (Calculation Agent Determination) on that portion of the Other
  Consideration that consists of cash; Modified Calculation Agent Adjustment on
  the remainder of the Other Consideration and, for the avoidance of doubt, if
  the Other Consideration includes (or, at the option of a holder of Shares,
  may include) Foreign Issuer Shares, then the Calculation Agent may choose to
  apply Cancellation and Payment (Calculation Agent Determination) to that
  portion of the Other Consideration comprising Foreign Issuer Shares.

  
	
   

  	
   

  	
   

  
	
  (c)     Share-for-Combined:

  	
   

  	
  Component Adjustment

  
	
   

  	
   

  	
   

  
	
  Nationalization,
  Insolvency or Delisting:

  	
   

  	
  Cancellation and
  Payment (Calculation Agent Determination); provided that in addition to the
  provisions of Section 12.6(a)(iii) of

  

 

7

 

	
   

  	
   

  	
  the Equity
  Definitions, it shall also constitute a Delisting if the Exchange is located
  in the United States and the Shares are not immediately re-listed, re-traded
  or re-quoted on any of the New York Stock Exchange, the NASDAQ Global Select
  Market or the NASDAQ Global Market (or their respective successors); if the
  Shares are immediately re-listed, re-traded or re-quoted on any such exchange
  or quotation system, such exchange or quotation system shall be deemed to be
  the Exchange.

  
	
   

  	
   

  	
   

  
	
  Additional Disruption Events:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  (a)     Change in Law:

  	
   

  	
  Applicable; provided that
  Section 12.9(a)(ii) of the Equity Definitions is hereby amended by
  (i) replacing the phrase “the interpretation” in the third line thereof
  with the phrase “or announcement or statement of the formal or informal
  interpretation”, (ii) immediately following the word “that” in the sixth
  line thereof, adding the phrase “as a result of one or
  more of the circumstances listed in (A) and (B) above” and
  (iii) deleting clause (Y) thereof in its entirety.

  
	
   

  	
   

  	
   

  
	
  (b)     Failure to Deliver:

  	
   

  	
  Not Applicable

  
	
   

  	
   

  	
   

  
	
  (c)     Insolvency Filing:

  	
   

  	
  Applicable

  
	
   

  	
   

  	
   

  
	
  (d)     Hedging Disruption:

  	
   

  	
  Applicable

  
	
   

  	
   

  	
   

  
	
  (e)     Increased Cost of
  Hedging:

  	
   

  	
  Not Applicable

  
	
   

  	
   

  	
   

  
	
  Hedging Party:

  	
   

  	
  Dealer

  
	
   

  	
   

  	
   

  
	
  Determining Party:

  	
   

  	
  Dealer

  
	
   

  	
   

  	
   

  
	
  Non-Reliance:

  	
   

  	
  Applicable

  
	
   

  	
   

  	
   

  
	
  Agreements and
  Acknowledgements Regarding Hedging Activities:

  	
   

  	
  Applicable

  
	
   

  	
   

  	
   

  
	
  Additional Acknowledgements:

  	
   

  	
  Applicable

  
	
   

  	
   

  	
   

  
	
  Dealer Payment
  Instructions:

  	
   

  	
  To be provided
  by Dealer.

  
	
   

  	
   

  	
   

  
	
  Counterparty
  Payment and Delivery Instructions:

  	
   

  	
  To be provided
  by Counterparty.

  

 

3.               Calculation Agent: 
Dealer; provided that all determinations
made by the Calculation Agent shall be made in good faith and in a commercially
reasonable manner. Following any calculation by the Calculation Agent
hereunder, upon a prior written request by Issuer, the Calculation Agent will
provide to Counterparty by e-mail to the e-mail address provided by
Counterparty in such a prior written request a report (in a commonly used file
format for the storage and manipulation of financial data) displaying in
reasonable detail the basis for such calculation; and provided
further that no transferee of the Transaction in accordance with the
terms of this Confirmation shall act as Calculation Agent with respect to such
transferred Transaction without the prior consent of Counterparty, such consent
not to be unreasonably withheld.

 

4.               Offices:

 

(a)                                  The Office of Dealer for this Transaction is Winchester house, 1 Great
Winchester St, London EC2N 2DB

 

8

 

(b)                               The Office of Counterparty for this Transaction is: 8000 S. Federal
Way, Boise, Idaho 83716-9632.

 

5.               Notices:  For purposes
of this Confirmation:

 

(a)                                Address for notices or communications to
Counterparty:

 

	
  To:

  	
  Micron Technology, Inc.

  
	
   

  	
  8000 South Federal Way

  
	
   

  	
  Boise, Idaho 83716

  
	
  Attn:

  	
  General Counsel

  
	
  Telephone:

  	
  (208) 368-4000

  
	
  Facsimile:

  	
  (208) 368-4540

  
	
   

  	
   

  
	
  With
  a copy to:

  	
  Wilson
  Sonsini Goodrich & Rosati

  
	
   

  	
  Professional
  Corporation

  
	
   

  	
  650
  Page Mill Road

  
	
   

  	
  Palo
  Alto, CA 94304

  
	
  Attn:

  	
  John
  A. Fore, Esq.

  
	
  Telephone:

  	
  (650)
  493-9300

  
	
  Facsimile:

  	
  (650)
  493-6811

  

 

(b)                               Address for notices or communications to
Dealer:

 

	
  To:

  	
  Deutsche Bank AG, London Branch

  
	
   

  	
  c/o Deutsche Bank Securities Inc.

  
	
   

  	
  60 Wall Street

  
	
   

  	
  New York, NY 1005

  
	
   

  	
   

  
	
  Attn:

  	
  Documentation Department

  
	
   

  	
   

  
	
  With a copy to:

  	
  Paul Stowell

  
	
   

  	
  Equity Capital Markets

  
	
   

  	
  Deutsche Bank Securities

  
	
   

  	
  60 Wall Street

  
	
   

  	
  New York, NY 10005

  
	
  Telephone:

  	
  212-250-6270

  
	
  Facsimile:

  	
  646-736-7122

  
	
  Email:

  	
  paul.stowell@db.com

  

 

6.               Representations, Warranties and Agreements:

 

(a)                                  In addition to the representations,
warranties and agreements in the Agreement and those contained elsewhere
herein, Counterparty represents and warrants to and for the benefit of, and
agrees with, Dealer as follows:

 

(i)                                     On the Trade Date and on any Additional
Premium Date (A) none of Counterparty and its officers and directors is
aware of any material nonpublic information regarding Counterparty or the
Shares and (B) all reports and other documents filed by Counterparty with
the Securities and Exchange Commission pursuant to the Exchange Act when
considered as a whole (with the more recent such reports and documents deemed
to amend inconsistent statements contained in any earlier such reports and
documents), do not contain any untrue statement of a material fact or any
omission of a material fact required to be stated therein or necessary to make
the statements therein, in the light of the circumstances in which they were
made, not misleading.

 

(ii)                                  Counterparty intends the Transaction to
qualify as an equity instrument for purposes of EITF Issue No. 00-19.  Without
limiting the generality of Section 13.1 of the Equity Definitions,
Counterparty acknowledges that Dealer is not making any representations or
warranties with respect to the treatment of the Transaction under any
accounting standards including FASB Statements 128, 133 ( as amended), 149 or
150,

 

9

 

EITF Issue No. 00-19, 01-6, 03-6 or 07-5 (or
any successor issue statements) or under FASB’s Liabilities & Equity
Project.

 

(iii)                               Prior to the Trade Date, Counterparty
shall deliver to Dealer a resolution of Counterparty’s board of directors (or
an authorized committee thereof) authorizing the Transaction and such other
certificate or certificates as Dealer shall reasonably request.

 

(iv)                              On the Trade Date and on any Additional
Premium Date, without limiting the generality of Section 3(a)(iii) of
the Agreement, the Transaction will not violate Rule 13e-1 or
Rule 13e-4 under the Exchange Act.

 

(v)                                 Counterparty is not entering into this
Confirmation to create actual or apparent trading activity in the Shares (or
any security convertible into or exchangeable for Shares) or to manipulate the
price of the Shares (or any security convertible into or exchangeable for
Shares) or otherwise in violation of the Exchange Act.

 

(vi)                              Counterparty is not, and after giving
effect to the transactions contemplated hereby will not be, an “investment
company” as such term is defined in the Investment Company Act of 1940, as
amended.

 

(vii)                           On the Trade Date, the Premium Payment
Date and on any Additional Premium Payment Date (A) the assets of
Counterparty at their fair valuation exceed the liabilities of Counterparty,
including contingent liabilities, (B) the capital of Counterparty is
adequate to conduct the business of Counterparty and (C) Counterparty has
the ability to pay its debts and obligations as such debts mature and does not
intend to, or does not believe that it will, incur debt beyond its ability to
pay as such debts mature.

 

(viii)                        (A)  During each period starting on
the first Expiration Date and ending on the last Expiration Date, in each case
sharing a common Final Disruption Date (each a “Settlement Period”), the
Shares or securities that are convertible into, or exchangeable or exercisable
for Shares shall not be, subject to a “restricted period,” as such term is
defined in Regulation M under the Exchange Act (“Regulation M”) and
(B) Counterparty shall not engage in any “distribution,” as such term is
defined in Regulation M, other than a distribution meeting the requirements of
the exceptions set forth in sections 101(b)(10) and 102(b)(7) of
Regulation M, until the second Exchange Business Day immediately following the
relevant Settlement Period.

 

(ix)                                During each Settlement Period, neither
Counterparty nor any “affiliate” or “affiliated purchaser” (each as defined in
Rule 10b-18 under the Exchange Act (“Rule 10b-18”)) shall
directly or indirectly (including, without limitation, by means of any
cash-settled or other derivative instrument) purchase, offer to purchase, place
any bid or limit order that would effect a purchase of, or commence any tender
offer relating to, any Shares (or an equivalent interest, including a unit of
beneficial interest in a trust or limited partnership or a depository share) or
any security convertible into or exchangeable or exercisable for Shares.

 

(b)                                 Each of Dealer and Counterparty agrees
and represents that it is an “eligible contract participant” as defined in
Section 1a(12) of the U.S. Commodity Exchange Act, as amended.

 

(c)                                  Each of Dealer and Counterparty
acknowledges that the offer and sale of the Transaction to it is intended to be
exempt from registration under the Securities Act of 1933, as amended (the “Securities
Act”), by virtue of Section 4(2) thereof.  Accordingly, Counterparty represents and
warrants to Dealer and Dealer represents to Counterparty that (i) it has
the financial ability to bear the economic risk of its investment in the
Transaction and is able to bear a total loss of its investment and its
investments in and liabilities in respect of the Transaction, which it
understands are not readily marketable, are not disproportionate to its net
worth, and it is able to bear any loss in connection with the Transaction,
including the loss of its entire investment in the Transaction, (ii) it is an “accredited investor” as that term is
defined in Regulation D as promulgated under the Securities Act, (iii) it
is entering into the Transaction for its own account without a view to the
distribution or resale thereof, (iv) the assignment, transfer or other
disposition of the Transaction has not been and will not be registered under
the Securities Act and is restricted under this Confirmation, the Securities
Act and state securities laws, (v) its financial condition is such that it
has no need for liquidity with respect to its investment in the Transaction and
no need to dispose of any portion thereof to satisfy any existing or
contemplated undertaking or indebtedness and is capable of assessing the merits
of and understanding (on its

 

10

 

own behalf or through
independent professional advice), and understands and accepts, the terms,
conditions and risks of the Transaction.

 

(d)                                 Each of Dealer and Counterparty agrees
and acknowledges that Dealer is a “financial institution,” “swap participant”
and/or “financial participant” within the meaning of Sections 101(22), 101(53C)
and 101(22A) of Title 11 of the United States Code (the “Bankruptcy Code”).  The parties hereto further agree and
acknowledge (A) that this Confirmation is (i) a “securities contract,”
as such term is defined in Section 741(7) of the Bankruptcy Code,
with respect to which each payment and delivery hereunder is a “settlement
payment,” as such term is defined in Section 741(8) of the Bankruptcy
Code, and (ii) a “swap agreement,” as such term is defined in Section 101(53B)
of the Bankruptcy Code, with respect to which each payment and delivery
hereunder is a “transfer,” as such term is defined in Section 101(54) of
the Bankruptcy Code, and (B) that Dealer is entitled to the protections
afforded by, among other sections, Sections 362(b)(6), 362(b)(17), 546(e),
546(g), 555 and 560 of the Bankruptcy Code.

 

(e)                                  Counterparty hereby agrees and
acknowledges that the Transaction has not been registered with the Securities
and Exchange Commission or any state securities commission and that the Options
are being written by Dealer to Counterparty in reliance upon exemptions from
any such registration requirements. 
Counterparty acknowledges that all Options acquired from Dealer will be
acquired for investment purposes only and not for the purpose of resale or
other transfer except in compliance with the requirements of the Securities
Act.  Counterparty will not sell or
otherwise transfer any Option or any interest therein except in compliance with
the requirements of the Securities Act and any subsequent offer or sale of the
Options will be solely for Counterparty’s account and not as part of a
distribution that would be in violation of the Securities Act.

 

(f)                                    Each party acknowledges and agrees to be
bound by the Conduct Rules of the Financial Industry Regulatory Authority, Inc.
applicable to transactions in options, and further agrees not to violate the
position and exercise limits set forth therein.

 

7.               Repurchase Notices.  Counterparty
shall, on any day on which Counterparty effects any repurchase of Shares,
promptly give Dealer a written notice of such repurchase (a “Repurchase
Notice”) on such day if following such repurchase, the Notice Percentage as
determined on such day is greater by 0.5% than the Notice Percentage included
in the immediately preceding Repurchase Notice (or, in the case of the first
such Repurchase Notice or the first such Repurchase Notice after the initial
Final Disruption Date, greater than 4.5%). 
The “Notice Percentage” as of any day is the fraction (A) the
numerator of which is the aggregate of the Number of Shares for all Components
under this Transaction and all other Transactions and (B) the denominator
of which is the number of Shares outstanding on such day.  In the event that Counterparty fails to
provide Dealer with a Repurchase Notice on the day and in the manner specified
in this Section 7, then Counterparty to the extent permitted by law agrees
to indemnify and hold harmless Dealer, its affiliates and their respective
directors, officers, employees, agents and controlling persons (Dealer and each
such person being an “Indemnified Person”) from and against any and all losses
(including losses relating to Dealer’s hedging activities as a consequence of
becoming, or of the risk of becoming, a Section 16 “insider,” including
without limitation any forbearance from hedging activities or cessation of
hedging activities and any losses in connection therewith with respect to this
Transaction), claims, damages and liabilities (or actions in respect thereof),
joint or several, to which such Indemnified Person is subject, including
without limitation, Section 16 of the Exchange Act), relating to or
arising out of such failure.  If for any
reason the foregoing indemnification is unavailable to any Indemnified Person
or insufficient to hold harmless any Indemnified Person, then Counterparty
shall contribute, to the maximum extent permitted by law, to the amount paid or
payable by the Indemnified Person as a result of such loss, claim, damage or
liability.  In addition, Counterparty
will reimburse any Indemnified Person for all reasonable expenses (including
reasonable counsel fees and expenses) as they are incurred (after notice to Counterparty)
in connection with the investigation of, preparation for or defense or
settlement of any pending or threatened claim or any action, suit or proceeding
(including any governmental or regulatory investigation) arising therefrom,
whether or not such Indemnified Person is a party thereto and whether or not
such claim, action, suit or proceeding is initiated or brought by or on behalf
of Counterparty.  This indemnity shall
survive the completion of the Transaction contemplated by this Confirmation and
any assignment and delegation of the Transaction made pursuant to this
Confirmation or the Agreement shall inure to the benefit of any permitted
assignee of Dealer.  Issuer will not be
liable under this indemnity provision to the extent any loss, claim, damage,
liability or expense is found in a final judgment by a court to have resulted
from Dealer’s gross negligence or willful misconduct.

 

8.               Transfer or Assignment.  Neither party
may transfer any of its rights or obligations under this Transaction

 

11

 

without the prior
written consent of the non-transferring party (such consent not to be
unreasonably withheld); provided that if at any time the Equity Percentage
exceeds 9%, Dealer may immediately, in its sole discretion, transfer or assign
a number of Options sufficient to reduce the Equity Percentage to 8.5% to any
affiliate of Dealer whose obligations are guaranteed by Deutsche Bank AG or any
third party with (or with a guarantor (a “Third Party Guarantor”) that has) a
rating for its long-term, unsecured and unsubordinated indebtedness of A- or
better by Standard & Poor’s Ratings Services or its successor (“S&P”),
or A3 or better by Moody’s Investors Service, Inc. (“Moody’s”) or, if
either S&P or Moody’s ceases to rate such debt, at least an equivalent
rating or better by a substitute agency rating mutually agreed by Counterparty
and Dealer; provided however such Third Party Guarantor shall provide a
guarantee in a form reasonably satisfactory to the Counterparty in connection
with such transfer or assignment.  If, in
the discretion of Dealer, Dealer is unable to effect such transfer or
assignment after its commercially reasonable efforts on pricing terms
reasonably acceptable to Dealer, Dealer may designate any Scheduled Trading Day
as an Early Termination Date and an Additional Termination Date shall be deemed
to occur with respect to a portion (the “Terminated Portion”) of this
Transaction, allocated to Components as Dealer determines in its discretion,
such that the Equity Percentage following such partial termination will be
equal to or less than 8.5%.  In the event
that Dealer so designates an Early Termination Date with respect to a portion
of this Transaction, a payment shall be made pursuant to Section 6 of the
Agreement as if (i) an Early Termination Date had been designated in
respect of a Transaction having terms identical to this Transaction and a
Number of Options equal to the Terminated Portion, (ii) Counterparty shall
be the Affected Party with respect to such partial termination and (iii) such
portion of this Transaction shall be the only Affected Transaction.  The “Equity Percentage” as of any day
is the fraction (A) the numerator of which is the number of Shares that
Dealer or any of its affiliates that are subject to aggregation with Dealer
beneficially own (within the meaning of Section 13 of the Exchange Act) on
such day and (B) the denominator of which is the number of Shares
outstanding on such day.  Notwithstanding
Section 7 of the Agreement, Counterparty may assign its rights and
obligations under this Transaction, in whole or in part, on terms reasonably
acceptable to both parties, without any payment being owed from Counterparty to
Dealer.

 

9.               Extension of Settlement.   Dealer may
divide any Component into additional Components and designate the Expiration
Date, the Final Disruption Date and the Number of Options for each such
Component if Dealer determines, in its reasonable discretion, that such further
division is necessary or advisable to preserve Dealer’s hedging activity
hereunder in light of existing liquidity conditions or to enable Dealer to
effect purchases of Shares in connection with its hedging activity hereunder in
a manner that would, if Dealer were Counterparty or an affiliated purchaser of
Counterparty, be compliant with applicable legal and regulatory requirements.

 

10.         Early Termination Right.  Counterparty
may elect to terminate this Transaction, in whole or in part, prior to the
relevant Expiration Date, on terms acceptable to both parties, and, if such termination
occurs following the payment of the premiums for all Components, without any
payment being owed from Counterparty to Dealer.

 

11.         Equity Rights.  Dealer
acknowledges and agrees that this Confirmation is not intended to convey to it
rights with respect to the Transaction that are senior to the claims of common
stockholders in the event of Counterparty’s bankruptcy.  For the avoidance of doubt, the parties agree
that the preceding sentence shall not apply at any time other than during
Counterparty’s bankruptcy to any claim arising as a result of a breach by
Counterparty of any of its obligations under this Confirmation or the
Agreement.  For the avoidance of doubt,
the parties acknowledge that this Confirmation is not secured by any collateral
that would otherwise secure the obligations of Counterparty herein under or
pursuant to any other agreement.

 

12.         Alternative Calculations and Payment on Early
Termination and on Certain Extraordinary Events.  If Dealer
shall owe Counterparty any amount pursuant to Section 12.2 of the Equity
Definitions and “Consequences of Merger Events” above, or Sections 12.3, 12.6,
12.7 or 12.9 of the Equity Definitions (except in the event of a Tender Offer
or a Merger Event, in each case, in which the consideration or proceeds to be
paid to holders of Shares consists solely of cash) or pursuant to Section 6(d)(ii) of
the Agreement (except in the event of an Event of Default in which Counterparty
is the Defaulting Party or a Termination Event in which Counterparty is the Affected
Party, that resulted from an event or events within Counterparty’s control) (a “Payment
Obligation”), Counterparty shall have the right, in its sole discretion, to
require Dealer to satisfy any such Payment Obligation by the Share Termination
Alternative (as defined below) by giving irrevocable telephonic notice to
Dealer, confirmed in writing within one Scheduled Trading Day, between the
hours of 9:00 A.M. and 4:00 P.M. New York City time on the Merger
Date, Tender Offer Date, Announcement Date, Early Termination Date or other
date of termination, as applicable (“Notice of Share Termination”).  Within a commercially reasonable period of
time following receipt of a Notice of Share Termination, Dealer shall deliver
to Counterparty a number of Share Termination Delivery Units having a cash
value equal to the

 

12

 

amount of such Payment Obligation (such number of
Share Termination Delivery Units to be delivered to be determined by the
Calculation Agent as the number of whole Share Termination Delivery Units that
could be purchased over a commercially reasonable period of time with the cash
equivalent of such payment obligation) (the “Share Termination Alternative”).

 

	
  Share
  Termination Delivery Unit:

  	
   

  	
  In the case of a
  Termination Event, Event of Default, Delisting or Additional Disruption
  Event, one Share or, in the case of an Insolvency, Nationalization, Merger
  Event or Tender Offer, one Share or a unit consisting of the number or amount
  of each type of property received by a holder of one Share (without
  consideration of any requirement to pay cash or other consideration in lieu
  of fractional amounts of any securities) in such Insolvency, Nationalization,
  Merger Event or Tender Offer. If such Insolvency, Nationalization, Merger
  Event or Tender Offer involves a choice of consideration to be received by
  holders, such holder shall be deemed to have elected to receive the maximum
  possible amount of cash.

  
	
   

  	
   

  	
   

  
	
  Failure to
  Deliver:

  	
   

  	
  Applicable

  
	
   

  	
   

  	
   

  
	
  Other applicable provisions:

  	
   

  	
  If Share Termination
  Alternative is applicable, the provisions of Sections 9.8, 9.9, 9.10,
  9.11 and 9.12 of the Equity Definitions will be applicable as if Physical
  Settlement applied to the termination of the Transaction, except that all
  references to “Shares” shall be read as references to “Share Termination
  Delivery Units”; and provided
  that the Representation and Agreement contained in Section 9.11 of the
  Equity Definitions shall be modified by excluding any representations therein
  relating to restrictions, obligations, limitations or requirements under
  applicable securities laws as a result of the fact that Buyer is the issuer
  of any Share Termination Delivery Units (or any part thereof).

  

 

13.         Set-Off.  The parties
agree to amend Section 6 of the Agreement by replacing Section 6(f) in
its entirety with the following:

 

“(f) 
Upon the occurrence of an Event of Default or Termination Event with respect to
a party who is the Defaulting Party or the Affected Party (“X”), the
other party (“Y”) will have the right (but not be obliged) without prior
notice to X or any other person to set-off or apply any obligation of X under
an Equity Contract owed to Y (or any Affiliate of Y) (whether or not matured or
contingent and whether or not arising under the Agreement, and regardless of
the currency, place of payment or booking office of the obligation) against any
obligation of Y (or any Affiliate of Y) under an Equity Contract owed to X
(whether or not matured or contingent and whether or not arising under the
Agreement, and regardless of the currency, place of payment or booking office
of the obligation).  Y will give notice
to the other party of any set-off effected under this Section 6(f).

 

“Equity
Contract” shall mean for purposes of this Section 6(f) any
transaction relating to Shares between X and Y (or any Affiliate of Y) that
qualifies as ‘equity’ under applicable accounting rules.

 

Amounts
(or the relevant portion of such amounts) subject to set-off may be converted
by Y into the Termination Currency at the rate of exchange at which such party
would be able, acting in a reasonable manner and in good faith, to purchase the
relevant amount of such currency.

 

If any
obligation is unascertained, Y may in good faith estimate that obligation and
set-off in respect of the estimate, subject to the relevant party accounting to
the other when the obligation is ascertained.

 

Nothing
in this Section 6(f) shall be effective to create a charge or other
security interest.  This Section 6(f) shall
be without prejudice and in addition to any right of set-off, combination of
accounts, lien or other right to which any party is at any time otherwise
entitled (whether by operation of law, contract or otherwise).”

 

13

 

14.         Amendment to Equity Definitions. 
Solely for purposes of applying the Equity Definitions and for purposes
of this Confirmation, any reference in the Equity Definitions to a Strike Price
shall be deemed to be a reference to either of the Strike Price or the Cap Price,
or both, as appropriate.

 

15.                                 Disclosure.  Effective
from the date of commencement of discussions concerning the Transaction,
Counterparty and each of its employees, representatives, or other agents may
disclose to any and all persons, without limitation of any kind, the tax
treatment and tax structure of the Transaction and all materials of any kind
(including opinions or other tax analyses) that are provided to Counterparty
relating to such tax treatment and tax structure.

 

16.                                 Unwind.  In the event
the sale of the Convertible Notes is not consummated with the initial
purchasers pursuant to the Underwriting Agreement, for any reason by the close
of business in New York on April 15, 2009 (or such later date as agreed
upon by the parties which in no event shall be later than the third Scheduled
Trading Day following April 15, 2009) (such date or such later date as
agreed upon being the “Accelerated Unwind Date”), this Transaction shall
automatically terminate (the “Accelerated Unwind”) on the Accelerated
Unwind Date and (i) this Transaction and all of the respective rights and
obligations of Dealer and Counterparty under this Transaction shall be
cancelled and terminated and (ii) each party shall be released and
discharged by the other party from and agrees not to make any claim against the
other party with respect to any obligations or liabilities of the other party
arising out of and to be performed in connection with this Transaction either
prior to or after the Accelerated Unwind Date; provided
that Counterparty shall reimburse Dealer for any costs or expenses (including
market losses) relating to the unwinding of its hedging activities in
connection with the Transaction (including any loss or cost incurred as a
result of its terminating, liquidating, obtaining or reestablishing any hedge
or related trading position), which shall be paid in cash or Shares at the
option of the Counterparty (and if paid in Shares, with the market valuation of
such Shares being determined in a commercially reasonable manner by the
Calculation Agent).  The amount of any
such reimbursement shall be determined by Dealer in its sole good faith
discretion.  Dealer shall notify
Counterparty of such amount and Counterparty shall pay such amount in
immediately available funds on the Early Unwind Date.  Dealer and Counterparty represent and
acknowledge to the other that upon an Accelerated Unwind and the satisfaction
of counterparty’s payment obligation, if any, as specified in this Section 16,
all obligations with respect to this Transaction shall be deemed fully and
finally discharged.

 

17.         Additional Provisions.  Counterparty
understands and agrees that Agent will act as agent for both parties with
respect to the Transaction.  Agent is so
acting solely in its capacity as agent for Counterparty and Dealer pursuant to
instructions from Counterparty and Dealer. 
Agent shall have no responsibility or personal liability to either party
arising from any failure by either party to pay or perform any obligation under
the Transaction.  Each party agrees to
proceed solely against the other to collect or recover any amount owing to it
or enforce any of its rights in connection with or as a result of the
Transaction.

 

Whenever delivery of
funds or other assets is required hereunder by or to Counterparty, such
delivery shall be effected through Agent. 
In addition, all notices, demands and communications of any kind
relating to the Transaction between Dealer and Counterparty shall be
transmitted exclusively through Agent at the address indicated for
communications to Dealer in Section 5 herein.

 

18.         No Collateral by Counterparty.  No collateral is required to be posted by Counterparty
in respect of this Transaction.

 

19.         Disposition of Hedge Shares. 
Counterparty hereby agrees that if at any time, in the reasonable
judgment of counsel for the Dealer, the Shares acquired by Dealer for the
purpose of hedging its obligations pursuant to the Transaction (other than such
Shares, if any, that are, at the time of such determination, due to be
delivered to Counterparty in connection with a Net Share Settlement of the
Transaction) (the “Hedge Shares”), cannot be sold in the U.S. public market by
Dealer without registration under the Securities Act, Counterparty shall, at
its election: (i) in order to allow Dealer to sell the Hedge Shares in a
registered offering, use its commercially reasonable efforts to make available
to Dealer an effective registration statement under the Securities Act to cover
the resale of such Hedge Shares and (A) enter into an agreement, in form
and substance reasonably satisfactory to Dealer, substantially in the form of
an underwriting agreement for a registered offering, (B) provide
accountant’s “comfort” letters in customary form for registered offerings of
equity securities, (C) provide disclosure opinions of nationally
recognized outside counsel to Counterparty customary in form for registered
offerings of equity securities, (D) provide other customary opinions,
certificates and closing documents customary in form for registered offerings
of equity securities and (E) afford Dealer a reasonable opportunity to
conduct a “due diligence” investigation with respect to Counterparty customary
in scope for

 

14

 

underwritten offerings of equity securities; provided, however, that if Dealer, in its
reasonable discretion, is not satisfied with access to due diligence materials,
the results of its due diligence investigation, or the procedures and
documentation for the registered offering referred to above, then clause (ii) or
clause (iii) of this Section 18 shall apply at the election of
Counterparty; (ii) in order to allow Dealer to sell the Hedge Shares in a
private placement, enter into a private placement agreement substantially
similar to private placement purchase agreements customary for private
placements of equity securities, in form and substance reasonably satisfactory
to Dealer, including customary representations, covenants, blue sky and other
governmental filings and/or registrations, indemnities to Dealer, due diligence
rights (for Dealer or any designated buyer of the Hedge Shares from Dealer),
opinions and certificates and such other documentation as is customary for
private placements agreements, all reasonably acceptable to Dealer (in which
case, the Calculation Agent shall make any adjustments to the terms of the
Transaction that are necessary, in its reasonable judgment, to compensate
Dealer for any discount from the public market price of the Shares incurred on
the sale of Hedge Shares in a private placement); or (iii) purchase the
Hedge Shares from Dealer at the VWAP Price on such Exchange Business Days, and
in the amounts, as requested by Dealer.

 

20.         Opinion of Counsel.  Counterparty
shall deliver an opinion of counsel, dated as of the Trade Date, in
substantially the form attached hereto as Annex B.

 

21.         Waiver of Trial by Jury.  EACH OF COUNTERPARTY AND DEALER HEREBY IRREVOCABLY
WAIVES (ON ITS OWN BEHALF AND, TO THE EXTENT PERMITTED BY APPLICABLE LAW, ON
BEHALF OF ITS STOCKHOLDERS) ALL RIGHT TO TRIAL BY JURY IN ANY ACTION,
PROCEEDING OR COUNTERCLAIM (WHETHER BASED ON CONTRACT, TORT OR OTHERWISE)
ARISING OUT OF OR RELATING TO THE TRANSACTION OR THE ACTIONS OF DEALER OR ITS
AFFILIATES OR COUNTERPARTY OR ITS AFFILIATES IN THE NEGOTIATION, PERFORMANCE OR
ENFORCEMENT HEREOF.

 

22.         Governing Law.  THE AGREEMENT AND  THIS CONFIRMATION SHALL BE GOVERNED BY THE LAWS OF THE
STATE OF NEW YORK.  THE PARTIES HERETO
IRREVOCABLY SUBMIT TO THE EXCLUSIVE JURISDICTION OF THE COURTS OF THE STATE OF
NEW YORK AND THE UNITED STATES COURT FOR THE SOUTHERN DISTRICT OF NEW YORK IN
CONNECTION WITH ALL MATTERS RELATING HERETO AND WAIVE ANY OBJECTION TO THE
LAYING OF VENUE IN, AND ANY CLAIM OF INCONVENIENT FORUM WITH RESPECT TO, THESE
COURTS.

 

23.         Role of Agent.   (i) Agent is acting as agent for Dealer
but does not guarantee the performance of Dealer or Counterparty; (ii) Dealer
is not a member of the Securities Investor Protection Corporation; (iii) Agent,
Dealer and Counterparty each hereby acknowledges that any transactions by
Dealer or Agent in the Shares will be undertaken by Dealer as principal for its
own account; and (iv) all of the actions to be taken by Dealer and Agent
in connection with the Transaction shall be taken by Dealer or Agent
independently and without any advance or subsequent consultation with
Counterparty; and (v) Agent is hereby authorized to act as agent for
Counterparty only to the extent required to satisfy the requirements of Rule 15a-6
under the Exchange Act in respect of the Transaction described hereby.

 

15

 

This Confirmation may be
executed in several counterparts, each of which shall be deemed an original but
all of which together shall constitute one and the same instrument.

 

Counterparty hereby
agrees to check this Confirmation and to confirm that the foregoing correctly
sets forth the terms of the Transaction by signing in the space provided below
and returning to Deutsche a facsimile of the fully-executed Confirmation to
Deutsche at 44 113 336 2009. Originals shall be provided for your execution
upon your request.

 

We are very pleased to
have executed the Transaction with you and we look forward to completing other
transactions with you in the near future.

 

 

 

Very truly yours,

 

DEUTSCHE
BANK AG, LONDON BRANCH

 

 

	
  By:

  	
  /s/
  Lars Kestner

  	
   

  
	
   

  	
  Name:

  	
  Lars Kestner

  	
   

  
	
   

  	
  Title:

  	
  Managing Director

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
  /s/
  Paul Maley

  	
   

  
	
   

  	
  Name:

  	
  Paul Maley

  	
   

  
	
   

  	
  Title:

  	
  Director

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  DEUTSCHE
  BANK SECURITIES INC.,

  	
   

  
	
  acting solely as Agent
  in connection with this Transaction

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
  /s/
  Lars Kestner

  	
   

  
	
   

  	
  Name:

  	
  Lars Kestner

  	
   

  
	
   

  	
  Title:

  	
  Managing Director

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
  /s/
  Peter Lambrakaic

  	
   

  
	
   

  	
  Name:

  	
  Peter Lambrakaic

  	
   

  
	
   

  	
  Title:

  	
  Managing Director

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Counterparty hereby
  agrees to, accepts and confirms the terms of the foregoing as of the Trade
  Date.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  MICRON
  TECHNOLOGY, INC.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
  /s/
  Ronald C. Foster

  	
   

  
	
   

  	
  Name:

  	
  Ronald C. Foster

  	
   

  
	
   

  	
  Title:

  	
  Vice President of
  Finance and

  	
   

  
	
   

  	
   

  	
  Chief Financial Officer

  	
   

  

 

[Confirmation Signature Page]

 

 

ANNEX A

 

	
  Component

  	
   

  	
  Number of Options per

  Component

  	
   

  	
  Premium per

  Component

  	
   

  	
  Expiration Date

  	
   

  
	
  1

  	
   

  	
  314,728.30

  	
   

  	
  $

  	
  172,000.00

  	
   

  	
  October 16, 2012

  	
   

  
	
  2

  	
   

  	
  314,728.30

  	
   

  	
  $

  	
  172,000.00

  	
   

  	
  October 17, 2012

  	
   

  
	
  3

  	
   

  	
  314,728.30

  	
   

  	
  $

  	
  172,000.00

  	
   

  	
  October 18, 2012

  	
   

  
	
  4

  	
   

  	
  314,728.30

  	
   

  	
  $

  	
  172,000.00

  	
   

  	
  October 19, 2012

  	
   

  
	
  5

  	
   

  	
  314,728.30

  	
   

  	
  $

  	
  172,000.00

  	
   

  	
  October 22, 2012

  	
   

  
	
  6

  	
   

  	
  314,728.30

  	
   

  	
  $

  	
  172,000.00

  	
   

  	
  October 23, 2012

  	
   

  
	
  7

  	
   

  	
  314,728.30

  	
   

  	
  $

  	
  172,000.00

  	
   

  	
  October 24, 2012

  	
   

  
	
  8

  	
   

  	
  314,728.30

  	
   

  	
  $

  	
  172,000.00

  	
   

  	
  October 25, 2012

  	
   

  
	
  9

  	
   

  	
  314,728.30

  	
   

  	
  $

  	
  172,000.00

  	
   

  	
  October 26, 2012

  	
   

  
	
  10

  	
   

  	
  314,728.30

  	
   

  	
  $

  	
  172,000.00

  	
   

  	
  October 29, 2012

  	
   

  
	
  11

  	
   

  	
  314,728.30

  	
   

  	
  $

  	
  172,000.00

  	
   

  	
  October 30, 2012

  	
   

  
	
  12

  	
   

  	
  314,728.30

  	
   

  	
  $

  	
  172,000.00

  	
   

  	
  October 31, 2012

  	
   

  
	
  13

  	
   

  	
  314,728.30

  	
   

  	
  $

  	
  172,000.00

  	
   

  	
  November 1, 2012

  	
   

  
	
  14

  	
   

  	
  314,728.30

  	
   

  	
  $

  	
  172,000.00

  	
   

  	
  November 2, 2012

  	
   

  
	
  15

  	
   

  	
  314,728.30

  	
   

  	
  $

  	
  172,000.00

  	
   

  	
  November 5, 2012

  	
   

  
	
  16

  	
   

  	
  314,728.30

  	
   

  	
  $

  	
  172,000.00

  	
   

  	
  November 6, 2012

  	
   

  
	
  17

  	
   

  	
  314,728.30

  	
   

  	
  $

  	
  172,000.00

  	
   

  	
  November 7, 2012

  	
   

  
	
  18

  	
   

  	
  314,728.30

  	
   

  	
  $

  	
  172,000.00

  	
   

  	
  November 8, 2012

  	
   

  
	
  19

  	
   

  	
  314,728.30

  	
   

  	
  $

  	
  172,000.00

  	
   

  	
  November 9, 2012

  	
   

  
	
  20

  	
   

  	
  314,728.30

  	
   

  	
  $

  	
  172,000.00

  	
   

  	
  November 12, 2012

  	
   

  
	
  21

  	
   

  	
  314,728.30

  	
   

  	
  $

  	
  172,000.00

  	
   

  	
  November 13, 2012

  	
   

  
	
  22

  	
   

  	
  314,728.30

  	
   

  	
  $

  	
  172,000.00

  	
   

  	
  November 14, 2012

  	
   

  
	
  23

  	
   

  	
  314,728.30

  	
   

  	
  $

  	
  172,000.00

  	
   

  	
  November 15, 2012

  	
   

  
	
  24

  	
   

  	
  314,728.30

  	
   

  	
  $

  	
  172,000.00

  	
   

  	
  November 16, 2012

  	
   

  
	
  25

  	
   

  	
  314,728.30

  	
   

  	
  $

  	
  172,000.00

  	
   

  	
  November 19, 2012

  	
   

  

 

	
  Aggregate
  Premium for all Components

  	
   

  	
   

  
	
  $

  	
  4,300,000.00

  	
   

  	
   

  
				

 

 

Schedule
(as contemplated by the confirmation dated April 8, 2008 between Micron
Technology, Inc. and Deutsche Bank AG, London Branch for issuer capped
share call option transaction (the “Confirmation”)) setting forth
the increased Number of Options for all Components upon the exercise
of the option to purchase additional 4.25% Convertible Senior Notes
due October 15, 2013 pursuant to Section 2 of the Underwriting
Agreement (as defined in the Confirmation).

 

	
  Component

  	
   

  	
  Number of Options per

  Component

  	
   

  	
  Premium per

  Component

  	
   

  	
  Expiration Date

  	
   

  
	
  1

  	
   

  	
  361,937.55

  	
   

  	
  $

  	
  197,800.00

  	
   

  	
  October 16, 2012

  	
   

  
	
  2

  	
   

  	
  361,937.55

  	
   

  	
  $

  	
  197,800.00

  	
   

  	
  October 17, 2012

  	
   

  
	
  3

  	
   

  	
  361,937.55

  	
   

  	
  $

  	
  197,800.00

  	
   

  	
  October 18, 2012

  	
   

  
	
  4

  	
   

  	
  361,937.55

  	
   

  	
  $

  	
  197,800.00

  	
   

  	
  October 19, 2012

  	
   

  
	
  5

  	
   

  	
  361,937.55

  	
   

  	
  $

  	
  197,800.00

  	
   

  	
  October 22, 2012

  	
   

  
	
  6

  	
   

  	
  361,937.55

  	
   

  	
  $

  	
  197,800.00

  	
   

  	
  October 23, 2012

  	
   

  
	
  7

  	
   

  	
  361,937.55

  	
   

  	
  $

  	
  197,800.00

  	
   

  	
  October 24, 2012

  	
   

  
	
  8

  	
   

  	
  361,937.55

  	
   

  	
  $

  	
  197,800.00

  	
   

  	
  October 25, 2012

  	
   

  
	
  9

  	
   

  	
  361,937.55

  	
   

  	
  $

  	
  197,800.00

  	
   

  	
  October 26, 2012

  	
   

  
	
  10

  	
   

  	
  361,937.55

  	
   

  	
  $

  	
  197,800.00

  	
   

  	
  October 29, 2012

  	
   

  
	
  11

  	
   

  	
  361,937.55

  	
   

  	
  $

  	
  197,800.00

  	
   

  	
  October 30, 2012

  	
   

  
	
  12

  	
   

  	
  361,937.55

  	
   

  	
  $

  	
  197,800.00

  	
   

  	
  October 31, 2012

  	
   

  
	
  13

  	
   

  	
  361,937.55

  	
   

  	
  $

  	
  197,800.00

  	
   

  	
  November 1, 2012

  	
   

  
	
  14

  	
   

  	
  361,937.55

  	
   

  	
  $

  	
  197,800.00

  	
   

  	
  November 2, 2012

  	
   

  
	
  15

  	
   

  	
  361,937.55

  	
   

  	
  $

  	
  197,800.00

  	
   

  	
  November 5, 2012

  	
   

  
	
  16

  	
   

  	
  361,937.55

  	
   

  	
  $

  	
  197,800.00

  	
   

  	
  November 6, 2012

  	
   

  
	
  17

  	
   

  	
  361,937.55

  	
   

  	
  $

  	
  197,800.00

  	
   

  	
  November 7, 2012

  	
   

  
	
  18

  	
   

  	
  361,937.55

  	
   

  	
  $

  	
  197,800.00

  	
   

  	
  November 8, 2012

  	
   

  
	
  19

  	
   

  	
  361,937.55

  	
   

  	
  $

  	
  197,800.00

  	
   

  	
  November 9, 2012

  	
   

  
	
  20

  	
   

  	
  361,937.55

  	
   

  	
  $

  	
  197,800.00

  	
   

  	
  November 12, 2012

  	
   

  
	
  21

  	
   

  	
  361,937.55

  	
   

  	
  $

  	
  197,800.00

  	
   

  	
  November 13, 2012

  	
   

  
	
  22

  	
   

  	
  361,937.55

  	
   

  	
  $

  	
  197,800.00

  	
   

  	
  November 14, 2012

  	
   

  
	
  23

  	
   

  	
  361,937.55

  	
   

  	
  $

  	
  197,800.00

  	
   

  	
  November 15, 2012

  	
   

  
	
  24

  	
   

  	
  361,937.55

  	
   

  	
  $

  	
  197,800.00

  	
   

  	
  November 16, 2012

  	
   

  
	
  25

  	
   

  	
  361,937.55

  	
   

  	
  $

  	
  197,800.00

  	
   

  	
  November 19, 2012

  	
   

  

 

	
  Aggregate
  Premium for all Components

  	
   

  	
   

  
	
  $

  	
   4,945,000.00

  	
   

  	
   

  
				

 

18

 

ANNEX B

 

Form of
Opinion

 

1.            The Company has been duly incorporated
and is an existing corporation in good standing under the laws of the State of
Delaware.

 

2.            The Company is duly qualified as a
foreign corporation for the transaction of business and is in good standing in
the State of Idaho.

 

3.            The Confirmation has been duly
authorized, executed and delivered by the Company.

 

4.            The execution and delivery by the Company
of the Confirmation does not result in any violation by the Company of the
Certificate of Incorporation or the Bylaws.

 

19

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00157-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00157-of-00352.parquet"}]]