Document:

EXHIBIT 10.11 
  
 

 
  
 July 11, 2005 
  
 Mr. Constantine S. Macricostas 
 5509 Pennock Point Road 
 Jupiter, FL 33458 
  
 RE: Consulting Agreement 
  
 Dear Deno: 
  
 This letter confirms that Photronics, Inc. (the “Company”) has agreed to continue to retain you as a Consultant in accordance with the terms of this letter. This Agreement is extended to you because of your
importance as the Chief Executive Officer of the Company and our desire to retain your counsel after your retirement. 
  
 Accordingly, you shall continue to be retained, and you agree to serve, as a consultant. In order to retire from the Company, you must be at least 55
years of age and have been employed by the Company for at least 20 years, which criteria you have satisfied. The consulting relationship shall continue for a period of seven (7) years after the date of this letter (the “Consulting
Period”). 
  
 1) Consulting Services 
  
 You shall provide consulting services to the Company in any area of your
expertise upon request by a duly authorized officer of the Company, and such services shall be provided at such times, locations (provided that travel to any location not reasonably proximate to either Brookfield, Connecticut or your then current
residence shall be at the expense of the Company) and by such means as reasonably required by the Company. You shall make yourself available to provide such services for up to ten (10) hours per month throughout the Consulting Period. 
  
 2) Compensation 
  
 As compensation for your services during the Consulting Period, the Company agrees to provide you with consulting fees and
benefits under the terms specified below: 
  

	 	a)	Fees: In consideration for your consulting services, the Company will pay you consulting fees in the amount of two hundred and fifty thousand dollars ($250,000) per year (“Consulting Fees”). The Company shall pay you the Consulting Fees in equal monthly payments of twenty thousand, eight
hundred and thirty-three dollars and thirty-three cents ($20,833.33) throughout the Consulting Period.

  

	 	b)	Taxes and Withholding: As a Consultant, you will comply with all applicable State and Federal laws governing self-employed individuals, including obligations such as
quarterly payment of estimated taxes, social security, disability and other contributions based on the fees paid to you by the Company under this Agreement. The Company will not withhold or make payments for State or Federal income tax or Social
Security, make employment insurance or disability insurance contributions, or obtain workers’ compensation insurance on your behalf. You hereby indemnify and defend the Company against any and all such taxes or contributions.

  

	 	c)	Health Insurance: To the extent permitted by law and by the Company’s group health insurance policies, during the Consulting Period you and your spouse will continue to
be covered by the Company’s health insurance benefits until January 1, 2006. Thereafter, the Company will provide you with supplemental health coverage, provided that the premiums payable by the Company shall not exceed $10,000 per year. If
premiums exceed that amount, then you may wish to reimburse the Company for such excess if you wish to continue such coverage. 

  
 3) Limitations on Authority 
  
 You shall have no responsibilities as a Consultant to the Company other than as provided for above, and you shall not represent or purport to represent
the Company in any manner whatsoever to any third party unless authorized by the Company in writing to do so. 
  
 4) Non-Competition and Non-Solicitation 
  
 You hereby agree that during the Consulting Period, you will not, without first obtaining the Company’s prior written approval, directly or indirectly engage or prepare to engage in any activities in competition
with the Company or accept employment, provide services to, or establish a business relationship with a business or individual engaged in or preparing to engage in competition with the Company. You are free to engage in other work or business
activities during the Consulting Period so long as they are not competitive with the Company. For purposes of this paragraph the holding of less than one percent (1%) of the outstanding voting securities of any firm or business organization in
competition with the Company shall not constitute activities or services precluded by this paragraph. You also agree that through the end of the Consulting Period and for one (1) year thereafter, you will not, either directly or through others, solicit or attempt to solicit any employee or other personnel of the Company to terminate his or her relationship with the Company or to become an employee,
consultant or independent contractor to or for any other person or entity. Further, you agree not to disparage the Company in any manner likely to be harmful to the Company’s business reputation, or the personal or business reputation of the
Company’s directors, shareholders or employees. You agree that the Consulting Fees adequately compensate you for the restrictions of this paragraph.

  

 2 

5) Expenses 
  
 You are responsible to pay, without reimbursement, all reasonable and ordinary expenses you incur on behalf of the Company in order to fulfill your
obligations hereunder. Notwithstanding the foregoing, in the event that the Company requests the Consultant to incur travel, entertainment or other expenses in connection with duties that extend beyond the ordinary course of the Consultant’s
duties under this Agreement, then the Company and the Consultant shall discuss and agree in advance on the amount of such extraordinary expenses for which the Consultant will be reimbursed, and such extraordinary expenses will not be credited
against the Consulting Fee otherwise payable under this Agreement. 
  
 6)
Office Space 
  
 During the term of this Agreement,
Company shall provide Consultant with office space suitable for Consultant to perform the Consulting Services, at the Company’s offices in Brookfield, CT. Such office space shall be in proximity to the Company’s offices for its executive
officers. 
  
 7) Purchase of Automobile 
  
 Commencing February, 2003, Consultant has had use of a 2003 BMW 540i
automobile owned by Company. On or after February 2007, Consultant shall have the right to purchase such automobile from the Company for book value. 
  
 8) Liquidated Damages/Specific Performance 
  

	 	a)	You agree that it would be impracticable or extremely difficult to ascertain the amount of actual damages caused by breach of paragraph (4), Non-Competition and Non-Solicitation, of
this Agreement. Therefore, you agree that, in the event of such a breach, the Company will be entitled to withhold further payments of all Consulting Fees, recover all Consulting Fees already paid to you, and obtain such injunctive and other relief
as appropriate.

  

 3 

  

	 	 	You further agree that this liquidated damage provision represents reasonable compensation for the loss which would be incurred by the Company because of any
such breach.
	 	 	 
	 	b)	In the event you claim that the Company is in breach of this Agreement, in addition to any other remedies available to you, you shall be entitled to obtain specific performance of
this Agreement. 

  

	 	c)	In the event either party litigates enforcement of this Agreement, the prevailing party shall be entitled to recover its reasonable attorneys’ fees and pre-judgment interest on
amounts due but not paid. Interest shall be at a rate equal to two percent (2%) above the prime rate announced by the Company’s primary lender. 

  
 None of your interests under this letter, or any right to receive any payments or distribution hereunder, shall be subject
in any manner to sale, transfer, assignment, pledge, attachment, garnishment or other alienation or encumbrance of any kind, nor may such interest or right to receive a payment or distribution be taken, voluntarily or involuntarily, for the
satisfaction of the obligations or debts of, or other claims against you, including claims for alimony, support, separate maintenance and claims in bankruptcy proceedings. 
  
 If the foregoing accurately sets forth our Agreement, please so indicate by signing in the space provided below. 

 

			
	Very truly yours,
	
	PHOTRONICS, INC.
		
	By:	 	 /s/ Edwin L. Lewis

	Title:	 	Vice President, General Counsel and Secretary

  

	
	 Agreed to and accepted by:

	
	 /s/ Constantine S. Macricostas

	 Constantine S. Macricostas

  

 4Exhibit
    10.14

	 

LIMITED LIABILITY COMPANY

OPERATING AGREEMENT

OF 

MP MASK TECHNOLOGY CENTER,
LLC

a Delaware Limited Liability
Company 

MEMBERSHIP INTERESTS IN MP
MASK TECHNOLOGY CENTER, LLC, A DELAWARE LIMITED LIABILITY COMPANY, HAVE NOT BEEN
REGISTERED WITH OR QUALIFIED BY THE SECURITIES AND EXCHANGE COMMISSION OR ANY
SECURITIES REGULATORY AUTHORITY OF ANY STATE. THE INTERESTS ARE BEING SOLD IN
RELIANCE UPON EXEMPTIONS FROM SUCH REGISTRATION OR QUALIFICATION REQUIREMENTS.
THE INTERESTS CANNOT BE SOLD, TRANSFERRED, ASSIGNED OR OTHERWISE DISPOSED OF
EXCEPT IN COMPLIANCE WITH THE RESTRICTIONS ON TRANSFERABILITY CONTAINED IN THIS
LIMITED LIABILITY COMPANY OPERATING AGREEMENT OF MP MASK TECHNOLOGY CENTER, LLC
AND APPLICABLE FEDERAL AND STATE SECURITIES LAWS. 

	
      Dated as of May 5,
      2006

	 

TABLE OF
CONTENTS

	 	 	 	Page
	ARTICLE 1.	     	ORGANIZATIONAL MATTERS	1
	  
	1.1		Continuation	1
	1.2		Name	1
	1.3		Principal Place of Business; Other Places of
      Business	2
	1.4		Business Purpose	2
	1.5		Designated Agent for Service of
      Process	2
	1.6		Term	2
	1.7		Objectives; Approved Technology	2
	1.8		Transaction Documents	3
	 
	ARTICLE 2.	 	DEFINITIONS	3
	 
	ARTICLE 3.	 	CAPITAL; CAPITAL ACCOUNTS AND
    MEMBERS	14
	 
	3.1		Initial Capital Contributions of
      Members	14
	3.2		Additional Capital Contributions by Members	14
	3.3		Capital Accounts	14
	3.4		Member Capital	15
	3.5		Liability of Members	15
	3.6		Certain Expenses	15
	 
	ARTICLE 4.	 	FINANCING OF THE COMPANY	15
	 
	4.1		Types of Financing	15
	 
	ARTICLE 5.	 	MANAGEMENT	17
	                 			
	5.1		Board of Managers	17
	5.2		Number of Managers; Appointment of Managers	17
	5.3		Effect of Reduction in Photronics'
      Percentage Interest on Photronics Managers	18
	5.4		Effect of Reduction in Micron's Percentage Interest on Micron
      Managers	18
	5.5		Chairman of the Board of Managers	19
	5.6		Meetings of Members and of the Board of Managers; Quorum	19
	5.7		Actions Requiring a Special Vote	21
	5.8		Compensation of Managers	22
	5.9		Other Activities	23
	5.10		Accounting; Records and Reports	23
	5.11		Indemnification and Liability of the
      Managers	25
	5.12		General Manager	27
	5.13		Technology Steering Committee	29
	5.14		Non-Disclosure Agreement	29
	5.15	 	Maintenance of Insurance	29
	5.16	 	Related Party Agreements	29

i

	ARTICLE 6.	     	OPERATIONS	29
	 
	6.1		Headquarters	29
	6.2		Surplus Equipment	30
	6.3		Printability Studies	30
	6.4		Operations Plan; Annual Budget	30
	 
	ARTICLE 7.	 	DISPOSITION AND TRANSFERS OF
    INTERESTS	30
	 
	7.1		Holding of Membership Interest	30
	7.2		Transfer Moratorium	30
	7.3		Purchase of Remaining Interest	30
	7.4		Change in Control of Photronics	31
	7.5		Purchase and Sale Agreement	31
	 
	ARTICLE 8.	 	DISSOLUTION, LIQUIDATION, AND TERMINATION OF
      THE COMPANY	32
	 
	8.1		Limitations	32
	8.2		Exclusive Causes	32
	8.3		Effect of Dissolution	33
	8.4		No
      Capital Contribution Upon Dissolution	33
	8.5		Liquidation	34
	 
	ARTICLE 9.	 	DISTRIBUTIONS	35
	 
	9.1		Distributions of Cash Available for
      Distribution	35
	9.2		Distributions Upon Liquidation	35
	9.3		Withholding	35
	9.4		Distributions in Kind	36
	9.5		Limitations on Distributions	36
	 
	ARTICLE 10.		ALLOCATIONS OF NET PROFITS AND NET
      LOSSES	36
	 
	10.1		General Allocation of Net Profits and
      Losses	36
	10.2		Regulatory Allocations	37
	10.3		Tax Allocations	39
	10.4		Other Provisions	39
	 
	ARTICLE 11.		MISCELLANEOUS	41
	                 			
	11.1		Amendments	41

ii

**** Material omitted
pursuant to a request for confidential treatment under Rule 24b-2 of the
Exchange Act of 1934. Material filed separately with the Securities and Exchange
Commission. 

	                 	     		
	11.2		No Waiver	41
	11.3		Entire Agreement	41
	11.4		Further Assurances	41
	11.5		Notices	42
	11.6		Tax Matters	42
	11.7		Governing Law	43
	11.8		Construction; Interpretation	43
	11.9		Rights and Remedies Cumulative	44
	11.10		No Assignment; Binding Effect	44
	11.11		Severability	44
	11.12		Counterparts	44
	11.13		Dispute Resolution	45
	11.14		Third-Party Beneficiaries	45
	11.15		Specific Performance	45
	11.16		Consequential Damages	45

EXHIBITS

	Exhibit A	     	Members, Addresses, Initial Capital
      Contributions, and Percentage Interests
		 	
	Exhibit B	 	Initial Micron Managers
		 	
	Exhibit C	 	Initial Photronics Managers
		 	
	Exhibit D	 	Insurance

iii

**** Material omitted pursuant to a
request for confidential treatment under Rule 24b-2 of the Exchange Act of 1934.
Material filed separately with the Securities and Exchange
Commission.

LIMITED LIABILITY COMPANY OPERATING
AGREEMENT
OF
MP MASK TECHNOLOGY CENTER, LLC

          THIS
LIMITED LIABILITY COMPANY OPERATING AGREEMENT (together with the Exhibits, this
"Agreement") is made and entered into as of the 5th day of May, 2006 (the
"Effective Date"), by and between Micron Technology, Inc., a Delaware
corporation ("Micron"), and Photronics, Inc., a Connecticut corporation
("Photronics"), with respect to MP Mask Technology Center, LLC (the "Company"),
a limited liability company organized under the Delaware Limited Liability
Company Act, as amended from time to time (the "Act").

ARTICLE 1.
ORGANIZATIONAL
MATTERS

               1.1
Continuation

          The
Company was formed under the Act on April 10, 2006 by filing a Certificate of
Formation of the Company (the "Certificate") in the Office of the Secretary of
State of the State of Delaware as required by the Act. The Members hereby
continue the Company under the Act for the purposes and upon the terms and
conditions hereinafter set forth. Micron hereby continues as a Member of the
Company, and Photronics is admitted to the Company as a Member upon its
execution of this Agreement and receipt by Micron of $48 million of the Purchase
Price (as defined in the Contribution and Purchase Agreement). The rights and
liabilities of the Members shall be as provided in the Act, except as otherwise
expressly provided herein. In the event of any inconsistency between any terms
and conditions contained in this Agreement and any non-mandatory provisions of
the Act, the terms and conditions contained in this Agreement shall govern. If
any provision of this Agreement is prohibited or ineffective under the Act, this
Agreement will be considered amended to the smallest degree possible in order to
make such provision effective under the Act. Subject to the provisions hereof,
the Board of Managers may execute and file, or cause the General Manager to
file, any duly authorized amendments to the Certificate from time to time in a
form prescribed by the Act. The Board of Managers shall also cause to be made,
on behalf of the Company, such additional filings and recordings as the Board of
Managers shall deem necessary or advisable.

               1.2
Name

          The
name of the Company shall be MP Mask Technology Center, LLC. The Company may
also conduct business at the same time under one or more fictitious names if the
Board of Managers determines that such is in the best interests of the Company.
The Board of Managers may change the name of the Company from time to time, in
accordance with Applicable Law. 

1

               1.3
Principal Place of Business; Other Places of Business

          The
principal place of business of the Company is located at 3851 East Columbia
Road, Boise, Idaho or at such other place within or outside the State of
Delaware as the Board of Managers may from time to time designate. The Company
may maintain offices and places of business at such other place or places within
or outside the State of Delaware as the Board of Managers deem advisable.

               1.4
Business Purpose

          The
purpose of the Company shall be the (a) development, fabrication and sale of
advanced photomasks; (b) entry into any other lawful business, purpose or
activity in which a limited liability company may be engaged under Applicable
Law (including, without limitation, the Act) as the Members may determine from
time to time, subject to and in accordance with the terms of this Agreement; and
(c) entry into any lawful transaction and engagement in any lawful activity in
furtherance of the foregoing purposes and as may be necessary, incidental or
convenient to carry out the business of the Company as contemplated by this
Agreement.

               1.5
Designated Agent for Service of Process

          The
Company shall continuously maintain a registered office and a designated and
duly qualified agent for service of process on the Company in the State of
Delaware. As of the date hereof, the name of the duly qualified agent for
service of process is Corporation Service Company and the address of the
registered office of the Company in the State of Delaware is c/o Corporation
Service Company, 2711 Centerville Road, Suite 400, Wilmington, DE 19808. The
registered office and the registered agent may be changed from time to time by
the Board of Managers, by causing the prescribed form, accompanied by the
requisite filing fee, to be filed with the Delaware Secretary of State in
accordance with the Act.

               1.6
Term

          The
Company shall continue until the Company is terminated, dissolved or liquidated
in accordance with this Agreement and the Act. Notwithstanding the dissolution
of the Company, the existence of the Company shall continue until termination
pursuant to and as provided in Article 8 of this Agreement.

               1.7
Objectives; Approved Technology

          The
primary objectives of the Company (the "Primary Objectives") are to: (i) develop
and produce prototypes for industry-leading, advanced, next-generation, high-end
photomasks in accordance with Micron's specifications; (ii) achieve sustainable,
leading edge photomask production capabilities; (iii) manufacture production
photomasks for, and approved by, Micron pursuant to Micron's specifications and
in quantities required under the Transaction Documents. To the extent the
Company has excess capacity and resources after completely fulfilling the
Primary Objectives (inclusive of fulfillment of Company and Micron engineering
needs appropriate to accomplish the foregoing, but recognizing that Photronics
may also support Micron's production photomask needs through its other
facilities as allowed pursuant to the Transaction Documents), the Company's
secondary objective (the "Secondary Objective") is to support the development of
leading edge logic applications and manufacture prototypes and, when approved by
the Technology Steering Committee, production photomasks, for use by external
Photronics customers; [****].

          [****].

2

**** Material omitted pursuant to a
request for confidential treatment under Rule 24b-2 of the Exchange Act of 1934.
Material filed separately with the Securities and Exchange
Commission.

               1.8
Transaction Documents

          Contemporaneous
with, or prior to, the execution of this Agreement, Photronics, Micron and/or
the Company have entered into the agreements listed on Schedule B to the
Contribution and Purchase Agreement (collectively, the "Transaction
Documents").

ARTICLE 2.
DEFINITIONS

          Capitalized
words and phrases used and not otherwise defined elsewhere in this Agreement
shall have the following meanings: 

          "Act"
is defined in the preamble.

          "Adjusted
Capital Account Deficit" means, with respect to any Member at any time, the
deficit balance, if any, in such Member's Capital Account as of such time, after
giving effect to the following adjustments:

          (1)
Add to such Capital Account the amount that such Member is obligated to restore
or is deemed to be obligated to restore pursuant to Regulations Section
1.704-1(b)(2)(ii)(c) or the penultimate sentence of each of Regulations Sections
1.704-2(g)(1) and 1.704-2(i)(5); and 

          (2)
Subtract from such Capital Account such Member's share of the items described in
Regulations Sections 1.704-1(b)(2)(ii)(d)(4), (5) and (6).

The foregoing definition of Adjusted
Capital Account Deficit is intended to comply with the provisions of Regulations
Section 1.704-1(b)(2)(ii)(d) and shall be interpreted consistently
therewith.

2

**** Material omitted pursuant to a
request for confidential treatment under Rule 24b-2 of the Exchange Act of 1934.
Material filed separately with the Securities and Exchange
Commission.

          "Affiliate"
of a Person means any other Person which, directly or indirectly, controls, is
controlled by, or is under common control with, such Person. The term "control"
(including, with correlative meaning, the terms "controlled by" and "under
common control with"), as used with respect to any Person, means the possession,
directly or indirectly, of the power to direct or cause the direction of the
management and policies of such Person, whether through the ownership of voting
securities, by contract or otherwise. A Person shall be deemed an Affiliate of
another Person only so long as such control relationship exists. The parties
acknowledge and agree that neither Photronics nor Micron is presently controlled
by any other Person. Notwithstanding the foregoing, a Company Entity shall not
be deemed to be an Affiliate of either Photronics or Micron, except where
expressly provided in this Agreement.

          "Agreement"
shall mean this Limited Liability Company Operating Agreement, together with the
Exhibits, as amended or otherwise modified from time to time, which shall
constitute the limited liability company agreement of the Company within the
meaning of the Act.

          "Annual
Budget" is defined in Section 6.4.

          "Applicable
Law" means, with respect to a Person, any domestic or foreign, national,
federal, territorial, state or local constitution, statute, law (including
principles of common law), treaty, ordinance, rule, administrative
interpretation, regulation, order, writ, injunction, legally binding directive,
judgment, decree or other requirement or restriction of any arbitrator or
Governmental Authority applicable to such Person or its properties, assets,
officers, directors, employees, consultants or agents (in connection with such
officer's, director's, employee's, consultant's or agent's activities on behalf
of such Person).

          "Assignment
and Assumption Agreement" means the Assignment and Assumption Agreement dated as
of the date hereof, by and between Micron and the Company.

          "Base
Contributions" is defined in Section 4.1.2(a).

          "Board
of Managers" means, at any time, the Board of Managers of the Company designated
in accordance with Section 5.2.

          "Business"
is defined in Section 5.7(g).

          "Business
Day" means any day other than a day on which commercial banks in the United
States are required or authorized to be closed.

          "Capital
Account" means the Capital Account maintained for each Member on the Company's
books and records in accordance with the following provisions:

          (1) To
each Member's Capital Account there shall be added (a) such Member's Capital
Contributions, (b) such Member's allocable share of Net Profits and any items in
the nature of income or gain that are specially allocated to such Member
pursuant to Article 10 hereof or other provisions of this Agreement and (c) the
amount of any Company liabilities assumed by such Member or which are secured by
any property owned by such Member.

4

**** Material omitted pursuant to a
request for confidential treatment under Rule 24b-2 of the Exchange Act of 1934.
Material filed separately with the Securities and Exchange
Commission.

          (2)
From each Member's Capital Account there shall be subtracted (a) the amount of
(i) cash and (ii) the Gross Asset Value of any Company Assets (other than cash)
distributed to such Member pursuant to any provision of this Agreement in its
capacity as a Member (for the avoidance of doubt, any payment to a Member
pursuant to any license, consulting, services, subcontracting, lease or other
agreement between the Company and such Member or any Affiliates of such Member
shall not be treated as a "distribution"), (b) such Member's allocable share of
Net Losses and any other items in the nature of expenses or losses that are
specially allocated to such Member pursuant to Article 10 or other provisions of
this Agreement, and (c) liabilities of such Member assumed by the Company or
which are secured by any property contributed by such Member.

          (3) In
the event any Interest in the Company is Transferred in accordance with the
terms of this Agreement, the transferee shall succeed to the Capital Account of
the transferor to the extent it relates to the Transferred Interest.

          (4) In
determining the amount of any liability for purposes of subsections (1) and (2)
of this definition, there shall be taken into account Code Section 752(c) and
any other applicable provisions of the Code and Regulations.

          (5)
The foregoing provisions and the other provisions of this Agreement relating to
the maintenance of Capital Accounts are intended to comply with Regulations
Sections 1.704-1(b) and 1.704-2 and shall be interpreted and applied in a manner
consistent with such Regulations. In the event that the Board of Managers shall
determine that it is prudent to modify the manner in which the Capital Accounts,
or any additions or subtractions thereto, are computed in order to comply with
such Regulations, the Board of Managers may make such modification, provided
that it is not likely to have a material effect on the amounts distributable to
any Member pursuant to Article 8 hereof upon the dissolution of the Company. The
Board of Managers shall also make (a) any adjustments that are necessary or
appropriate, in the absence of guidance under applicable Regulations, to
maintain equality between the Capital Accounts of the Members and the amount of
Company capital reflected on the Company's balance sheet, as computed for book
purposes, in accordance with Regulations Section 1.704-1(b)(2)(iv)(q), and (b)
any appropriate modifications in the event that unanticipated events might
otherwise cause this Agreement not to comply with Regulations Sections
1.704-1(b) and 1.704-2.

          "Capital
Contributions" means, with respect to any Member, the total amount of cash and
the initial Gross Asset Value of property (other than cash) contributed to the
capital of the Company by such Member.

          "Cash"
means cash and cash equivalents determined by the Board of Managers in good
faith consistent with GAAP.

          "Certificate"
is defined in Section 1.1.

5

**** Material omitted pursuant to a
request for confidential treatment under Rule 24b-2 of the Exchange Act of 1934.
Material filed separately with the Securities and Exchange
Commission.

          "Chairman
of the Board" is defined in Section 5.5.

          "Change
in Control" shall be deemed to have occurred, with respect to Micron or
Photronics, when:

          (1)
Any "person" or "group" (as such terms are used in Sections 13(d) and 14(d) of
the Exchange Act) is or becomes the "beneficial owner" (as defined in Rules
13d-3 and 13d-5 under the Exchange Act) of shares representing more than fifty
percent (50%) of the combined voting power of the then outstanding securities
entitled to vote generally in elections of directors of Micron or Photronics, as
the case may be (the "Voting Stock");

          (2)
Micron or Photronics (A) consolidates with or merges into any other Person or
any other Person merges into Micron or Photronics, and in the case of any such
transaction, the outstanding common stock of Micron or Photronics, as the case
may be, is changed or exchanged into other assets or securities as a result,
unless the stockholders of Micron or Photronics, as the case may be, immediately
before such transaction own, directly or indirectly immediately following such
transaction, more than fifty percent (50%) of the combined voting power of the
outstanding voting securities of the corporation resulting from such transaction
in substantially the same proportion as their ownership of the Voting Stock
immediately before such transaction, or (B) conveys, transfers or leases all or
substantially all of its assets to any Person; or

          (3)
Any time Continuing Directors do not constitute a majority of the Board of
Directors of Micron or Photronics, as the case may be (or, if applicable, a
successor Person to Micron or Photronics, as the case may be).

          "Change
in Control Notice" is defined in Section 7.4.1.

          "Change
in Control Closing" is defined in Section 7.4.2.

          "Change
in Control Closing Price" is defined in Section 7.4.3.

          "Change
in Control Option Price" is defined in Section 7.4.3.

          "Code"
means the Internal Revenue Code of 1986, as amended from time to time (or any
corresponding provisions of succeeding law).

          "Company"
is defined in the preamble.

          "Company
Accountant" shall mean initially PricewaterhouseCoopers LLP or such other
independent accounting firm as appointed from time to time by the Board of
Managers.

6

**** Material omitted pursuant to a
request for confidential treatment under Rule 24b-2 of the Exchange Act of 1934.
Material filed separately with the Securities and Exchange
Commission.

          "Company
Assets" means all direct and indirect rights and interests in real and personal
property owned by the Company and its subsidiaries from time to time, and shall
include both tangible and intangible property (including Cash).

          "Company
Correlative Item" is defined in Section 10.4.4(b).

          "Company
Entity" means the Company, or any of its directly or indirectly majority owned
subsidiaries (whether organized as corporations, limited liability companies or
other legal entities).

          "Company
Minimum Gain" has the meaning set forth in Regulations Sections 1.704-2(b)(2)
and 1.704-2(d)(1) for the phrase "partnership minimum gain."

          "Company
Section 482 Allocation" is defined in Section 10.4.4(a).

          "Competing
Products" [****].

          "Continuing
Director" means, solely with respect to Micron or Photronics, at any date, a
member of Micron's or Photronics' Board of Directors, as the case may be, (i)
who was a member of such board as of the Effective Date or (ii) who was
nominated or elected by at least a majority of the directors who were Continuing
Directors at the time of such nomination or election or whose election to such
board was recommended or endorsed by at least a majority of the directors who
were Continuing Directors at the time of such nomination or election or such
lesser number comprising a majority of a nominating committee comprised of
independent directors if authority for such nominations or elections has been
delegated to a nominating committee whose authority and composition have been
approved by at least a majority of the directors who were Continuing Directors
at the time such committee was formed.

          "Contribution
and Purchase Agreement" means the Contribution and Units Purchase Agreement
dated as of the date hereof by and between the Company, Micron and
Photronics.

          "Depreciation"
means, for each Fiscal Year of the Company or other period, an amount equal to
the federal income tax depreciation, amortization or other cost recovery
deduction allowable with respect to an asset for such year or other period,
except that if the Gross Asset Value of an asset differs from its adjusted basis
for federal income tax purposes at the beginning of such year or other period,
Depreciation shall be an amount that bears the same ratio to such beginning
Gross Asset Value as the federal income tax depreciation, amortization or other
cost recovery deduction for such year or other period bears to such beginning
adjusted tax basis; provided, however, that if the federal income tax
depreciation, amortization or other cost recovery deduction for such year or
other period is zero, Depreciation shall be determined with reference to such
beginning Gross Asset Value using any reasonable method selected by the Board of
Managers.

7

**** Material omitted pursuant to a
request for confidential treatment under Rule 24b-2 of the Exchange Act of 1934.
Material filed separately with the Securities and Exchange
Commission.

          "Economic
Interest" means a Person's right to share in allocations of Net Profits, Net
Losses and other items of income, gains, losses, deductions and credits
hereunder and to receive distributions from the Company as set forth in this
Agreement, but does not include any other rights of a Member including, without
limitation, the right to vote or to participate in the management of the
Company, or, except as specifically provided in this Agreement or required under
the Act, any right to information concerning the business and affairs of the
Company.

          "Effective
Date" is defined in the preamble.

          "Excess
Allocation" is defined in Section 9.1.2.

          "Exchange
Act" means the Securities Exchange Act of 1934, as amended.

          "Fiscal
Month" is defined in Section 5.10.1.

          "Fiscal
Quarter" is defined in Section 5.10.1.

          "Fiscal
Year" is defined in Section 5.10.1.

          "GAAP"
means generally accepted accounting principles in the United States as in effect
from time to time.

          "GAAS"
means generally accepted auditing standards in the United States as in effect
from time to time.

          "General
Manager" is defined in Section 5.12.1.

          "Governmental
Authority" means any foreign, domestic, national, federal, territorial, state or
local governmental authority, quasi-governmental authority, instrumentality,
court, government or self-regulatory organization, commission, tribunal or
organization or any regulatory, administrative or other agency, or any political
or other subdivision, department or branch of any of the foregoing.

          "Gross
Asset Value" means, with respect to any asset, the asset's adjusted basis for
federal income tax purposes, except as follows:

          (1)
The initial Gross Asset Value of the Micron Contributed Assets shall be as set
forth on Exhibit A. The initial Gross Asset Value of any other asset contributed
by a Member shall be the fair value of such asset as determined by the Board of
Managers and the contributing Member.

          (2)
The Gross Asset Value of all Company Assets immediately prior to the occurrence
of any event described in subsections (a) through (d) hereof shall be adjusted
to equal their respective fair values, in accordance with the applicable
valuation provisions of this Agreement, or if there are no such
provisions, as determined by the Board of Managers using such reasonable method
of valuation as the Board of Managers may adopt, upon the occurrence of the
following events and in accordance with the applicable Regulations:

8

**** Material omitted pursuant to a
request for confidential treatment under Rule 24b-2 of the Exchange Act of 1934.
Material filed separately with the Securities and Exchange
Commission.

               (a)
the acquisition of an additional Interest in the Company (other than in
connection with the execution of this Agreement) by a new or existing Member in
exchange for more than a de minimis Capital Contribution, if the Board of
Managers reasonably determines that such adjustment is necessary or appropriate
to reflect the relative Economic Interests of the Members in the
Company;

               (b)
the distribution by the Company to a Member of more than a de minimis amount of
Company Assets as consideration for an Economic Interest or Interest in the
Company, if the Board of Managers reasonably determines that such adjustment is
necessary or appropriate to reflect the relative Economic Interests of the
Members in the Company;

               (c)
the liquidation of the Company within the meaning of Regulations Section
1.704-1(b)(2)(ii)(g); and

               (d)
at such other times as the Board of Managers shall reasonably determine
necessary or advisable in order to comply with Regulations Sections 1.704-1(b)
and 1.704-2.

          (3)
The Gross Asset Value of any Company Asset distributed to a Member shall be the
gross fair market value of such Company Asset on the date of distribution as
determined by the Board of Managers.

          (4)
The Gross Asset Values of Company Assets shall be increased (or decreased) to
reflect any adjustments to the adjusted basis of such Company Assets pursuant to
Code Section 734(b) or Code Section 743(b), but only to the extent that such
adjustments are taken into account in determining Capital Accounts pursuant to
Regulations Section 1.704-1(b)(2)(iv)(m); provided, however, that Gross Asset
Values shall not be adjusted pursuant to this subsection (4) of this definition
to the extent that the Board of Managers reasonably determines that an
adjustment pursuant to subsection (2) of this definition above is necessary or
appropriate in connection with a transaction that would otherwise result in an
adjustment pursuant to this subsection (4) of this definition.

          (5) If
the Gross Asset Value of a Company Asset has been determined or adjusted
pursuant to subsections (1), (2) or (4) of this definition, such Gross Asset
Value shall thereafter be adjusted by the Depreciation taken into account with
respect to such Company Asset for purposes of computing Net Profits and Net
Losses.

          "Increasing
Member" is defined in Section 5.4.1

          "Indemnified
Loss" is defined in Section 5.11.1.

9

**** Material omitted pursuant to a
request for confidential treatment under Rule 24b-2 of the Exchange Act of 1934.
Material filed separately with the Securities and Exchange
Commission.

          "Indemnitee"
is defined in Section 5.11.1.

          "Liquidators"
is defined in Section 8.5.1.

          "Majority
Member" is defined in Section 7.3.1.

          "Managers"
means at any time the individuals designated in accordance with Section 5.2 to
serve on the Board of Managers.

          "Maximum
Base Contributions Amount" is defined in Section 4.1.2(a).

          "Maximum
Excess Contributions Amount" is defined in Section 4.1.2(b).

          "Member"
means a Person owning a Membership Interest.

          "Member
Correlative Item" is defined in Section 10.4.4(a).

          "Member
Minimum Gain" means "partner nonrecourse debt minimum gain" as defined in
Regulations Section 1.704-2(i)(2).

          "Member
Nonrecourse Debt" means "partner nonrecourse debt" as set forth in Regulations
Section 1.704-2(b)(4).

          "Member
Nonrecourse Deductions" means "partner nonrecourse deductions" as set forth in
Regulations Section 1.704-2(i).

          "Member
Section 482 Allocation" is defined in Section 10.4.4(b).

          "Membership
Interest" or "Interest" means the entire ownership interest of a Member in the
Company at any particular time, including without limitation, the Member's
Economic Interest, any and all rights to vote and otherwise participate in the
Company's affairs, and the rights to any and all benefits to which a Member may
be entitled as provided in this Agreement, together with the obligations of such
Member to comply with all of the terms and provisions of this Agreement. A
Membership Interest may be expressed as a number of Units.

          "Micron"
is defined in the preamble.

          "Micron
Contributed Assets" mean the "Transferred Assets" (as defined in the
Contribution and Purchase Agreement) contributed by Micron to the
Company.

          "Micron
Manager" means any of the Managers designated by Micron to serve on the Board of
Managers in accordance with Section 5.2.

          "Minority
Closing" is defined in Section 7.3.1.

          "Minority
Closing Price" is defined in Section 7.3.2.

10

**** Material omitted pursuant to a
request for confidential treatment under Rule 24b-2 of the Exchange Act of 1934.
Material filed separately with the Securities and Exchange
Commission.

          "Minority
Member" is defined in Section 7.3.1.

          [****]

          "Net
Profits" or "Net Losses" means, for each Fiscal Year or other period, an amount
equal to the Company's taxable income or loss for such year or period determined
in accordance with Code Section 703(a) (for this purpose, all items of income,
gain, loss or deduction required to be stated separately pursuant to Code
Section 703(a)(1) shall be included in taxable income or loss), with the
following adjustments:

          (1)
Any income of the Company that is exempt from federal income tax and not
otherwise taken into account in computing Net Profits or Net Losses pursuant to
this definition shall be added to such taxable income or loss;

          (2)
Any expenditure of the Company described in Code Section 705(a)(2)(B) or treated
as a Code Section 705(a)(2)(B) expenditure pursuant to Regulations Section
1.704-1(b)(2)(iv)(i), and not otherwise taken into account in computing Net
Profits or Net Losses pursuant to this subsection (2) of this definition, shall
be subtracted from such taxable income or loss;

          (3)
Gain or loss resulting from any disposition of Company Assets where such gain or
loss is recognized for federal income tax purposes shall be computed by
reference to the Gross Asset Value of the Company Assets disposed of,
notwithstanding that the adjusted tax basis of such Company Assets differs from
its Gross Asset Value;

          (4) In
lieu of the depreciation, amortization and other cost recovery deductions taken
into account in computing such taxable income or loss, there shall be taken into
account Depreciation for such Fiscal Year;

          (5) To
the extent an adjustment to the adjusted tax basis of any asset included in
Company Assets pursuant to Code Section 734(b) or Code Section 743(b) is
required pursuant to Regulations Section 1.704-1(b)(2)(iv)(m)(4) to be taken
into account in determining Capital Accounts as a result of a distribution other
than in liquidation of a Member's Interest, the amount of such adjustment shall
be treated as an item of gain (if the adjustment increases the basis of the
asset) or loss (if the adjustment decreases the basis of the asset) from the
disposition of the asset and shall be taken into account for the purposes of
computing Net Profits and Net Losses;

          (6) If
the Gross Asset Value of any Company Asset is adjusted in accordance with
subsection (2) or subsection (3) of the definition of "Gross Asset Value," the
amount of such adjustment shall be taken into account in the taxable year of
such adjustment as gain or loss from the disposition of such asset for purposes
of computing Net Profits or Net Losses; and

          (7)
Notwithstanding any other provision of this definition, any items of income,
gain, loss or deduction that are specially allocated pursuant to Sections 10.2
and 10.4.4 shall not be taken into account in computing Net Profits or Net
Losses. The amount of items of income, gain, loss and deduction available to be
specially allocated shall be determined using principles analogous to those set
forth in this definition.

11

**** Material omitted pursuant to a
request for confidential treatment under Rule 24b-2 of the Exchange Act of 1934.
Material filed separately with the Securities and Exchange
Commission.

          The
Members acknowledge and agree that for financial accounting purposes the results
of the Company's operations will be reported in accordance with GAAP.

          "Non-Disclosure
Agreement" means the Non-Disclosure Agreement, dated as of the date hereof, by
and among the Company, Micron and Photronics.

          "Nonrecourse
Deductions" has the meaning set forth in Regulations Sections 1.704-2(b)(1) and
1.704-2(c).

          "Officer"
is defined in Section 5.12.3.

          "Option
Price" is defined in Section 7.3.2.

          "Percentage
Interest" means, with respect to a Member holding one or more Units, its
Interest in the Company as determined by dividing the number of Units owned by
such Member by the total number of Units of the Company then outstanding as
specified in Exhibit A attached hereto, as such exhibit may be modified or
supplemented from time to time in accordance with the terms of this Agreement. A
change in a Member's Capital Account shall not affect the Percentage Interests
of the Members unless expressly provided in this Agreement.

          [****]

          "Person"
means any person or entity, whether an individual, trustee, corporation,
partnership, limited partnership, limited liability company, trust,
unincorporated organization, business association, firm, joint venture, other
legal entity or Governmental Authority.

          "Photronics"
is defined in the preamble.

          "Photronics
Manager" means any of the Managers designated by Photronics to serve on the
Board of Managers in accordance with Section 5.2.

          "Primary
Objectives" is defined in Section 1.7.

          "Proceeding"
means any action, suit, hearing, arbitration, proceeding (public or private),
investigation, examination, audit or claim brought by or against any
Governmental Authority.

          "R&D"
is defined in Section 3.6.

          "Reducing
Member" is defined in Section 5.4.1.

12

**** Material omitted pursuant to a
request for confidential treatment under Rule 24b-2 of the Exchange Act of 1934.
Material filed separately with the Securities and Exchange
Commission.

          "Regulations"
means temporary and final Treasury Regulations promulgated under the Code, as
such regulations may be amended from time to time (including corresponding
provisions of succeeding Treasury Regulations).

          "Regulatory
Allocations" is defined in Section 10.2.8.

          "Representative"
is defined in Section 5.11.7(e).

          "Responsible
Party" is defined in Section 5.11.6.

          "Secondary
Objective" is defined in Section 1.7.

          "SG&A"
is defined in Section 3.6.

          "Special
Vote" means the affirmative vote or consent of each of Micron (provided that
Micron shall be entitled to such vote or consent only so long as Micron's
Percentage Interest is at least twenty-five percent (25%)) and Photronics
(provided that Photronics shall be entitled to such vote or consent only so long
as Photronics' Percentage Interest is at least twenty-five percent
(25%)).

          "Tax"
or "Taxes" means all taxes, levies, imposts and fees imposed by any Governmental
Authority (domestic or foreign) of any nature including but not limited to
federal, state, local or foreign net income tax, alternative or add-on minimum
tax, profits or excess profits tax, franchise tax, gross income, adjusted gross
income or gross receipts tax, employment related tax (including employee
withholding or employer payroll tax, FICA or FUTA), real or personal property
tax or ad valorem tax, sales or use tax, excise tax, stamp tax or duty, any
withholding or back up withholding tax, value added tax, severance tax,
prohibited transaction tax, premiums tax, occupation tax, together with any
interest or any penalty, addition to tax or additional amount imposed by any
Governmental Authority (domestic or foreign) responsible for the imposition of
any such tax.

          "Tax
Matters Partner" shall mean Micron.

          "Technology
License Agreement" means the Technology License Agreement dated as of the date
hereof by and among the Company, Micron and Photronics.

          "Technology
Steering Committee" is defined in Section 5.13.

          "Transaction
Documents" is defined in Section 1.8.

          "Transfer"
(including, with correlative meaning, the term "Transferred") means, with
respect to any Unit, Membership Interest or Economic Interest or portion
thereof, a sale, conveyance, exchange, assignment, pledge, encumbrance, gift,
bequest, hypothecation or other transfer or disposition by any other means,
whether for value or no value and whether voluntary or involuntary (including,
without limitation, by operation of law), or an agreement to do any of the
foregoing.

13

**** Material omitted pursuant to a
request for confidential treatment under Rule 24b-2 of the Exchange Act of 1934.
Material filed separately with the Securities and Exchange
Commission.

          "Unit"
means, with respect to a Membership Interest, a fractional, undivided share of
such Membership Interest issued pursuant to Article 3 of this Agreement. A
Membership Interest may include a fractional Unit. As of the date hereof, the
Units are held by the Members in accordance with Exhibit A, which Exhibit will
be updated from time to time in accordance with the terms of this
Agreement.

          "Voting
Stock" is defined in the definition of "Change in Control."

ARTICLE 3.
CAPITAL; CAPITAL ACCOUNTS
AND MEMBERS

               3.1
Initial Capital Contributions of Members

          3.1.1
Capital Contributions. The Members acknowledge and agree that as of the date
hereof: (i) pursuant to the Contribution and Purchase Agreement Micron has
contributed to the Company the Micron Contributed Assets; and (ii) pursuant to
the Assignment and Assumption Agreement Micron has assigned to the Company
certain contractual rights and other liabilities, and the Company has assumed
certain liabilities of Micron in connection therewith. Upon Photronics purchase
of 49,990 Units, from Micron pursuant to the Contribution and Purchase
Agreement, Photronics' and Micron's Capital Account balances shall have a
relative ratio equal to 49.99 divided by 50.01.

          3.1.2
Capital Account Balances. The names, addresses, initial Capital Account balances
of each Member (after giving effect to the transactions described in Section
3.1.1 and the sale by Micron of an Interest in the Company to Photronics
pursuant to the LLC Units Sale and Purchase Agreement), Percentage Interests of,
and number of Units owned by, the Members are as set forth on Exhibit A,
provided that the gross asset value and capital account balances on Exhibit A
will not be finalized until the completion of the balance sheet referenced in
Section 5.10.3(a).

               3.2
Additional Capital Contributions by Members

          Except
as provided in Section 3.1 and Section 4.1.2, no Member shall be required to
make any Capital Contributions to the Company.

               3.3
Capital Accounts

          A
Capital Account shall be established and maintained by the Company for each
Member in accordance with the terms of this Agreement.

14

**** Material omitted pursuant to a
request for confidential treatment under Rule 24b-2 of the Exchange Act of 1934.
Material filed separately with the Securities and Exchange
Commission.

               3.4
Member Capital

          Except
as otherwise provided in this Agreement or approved by a Special Vote: (a) no
Member shall demand or be entitled to receive a return of or interest on any
portion of its Capital Contributions or balance in its Capital Account; (b) no
Member shall withdraw any portion of its Capital Contributions or receive any
distributions from the Company as a return of capital on account of such Capital
Contributions; and (c) the Company shall not redeem or repurchase the Membership
Interest of any Member, provided that any such return, distribution or
redemption that is permitted hereunder shall be pro rata based upon the Members'
respective Percentage Interests.

               3.5
Liability of Members

          Except
as otherwise required by any non-waivable provision of the Act or other
Applicable Law and except as provided in this Agreement or other agreements
between the Company and one or more Members or their Affiliates, no Member shall
be liable in any manner whatsoever for any debt, liability or other obligation
of the Company, whether such debt, liability or other obligation arises in
contract, tort, or otherwise solely by reason of being a Member.

               3.6
Certain Expenses.

          [****]

ARTICLE 4.
FINANCING OF THE
COMPANY

               4.1
Types of Financing

          4.1.1
General. The Board of Managers shall be responsible for determining the type of
financing required to fund the operations of the Company, which may include
Capital Contributions from Members or incurring debt from Members or from
public, private or bank markets.

          4.1.2
Member Contributions.

               (a)
If the Board of Managers determines that the Company requires additional funding
by way of Capital Contributions, then the Members shall make additional Capital
Contributions of up to [****]. Any such written notice shall include the amount
of required Capital Contribution and the required funding date and shall be sent
to the Members at least twenty (20) Business Days prior to the required funding
date. Such required funding date shall correspond to the end of a Fiscal Month.
Subject to the dollar limitation set forth in this Section 4.1.2(a),
[****].

15

**** Material omitted pursuant to a
request for confidential treatment under Rule 24b-2 of the Exchange Act of 1934.
Material filed separately with the Securities and Exchange
Commission.

               (b)
If the Members (or one of the Members as allowed pursuant to Section 4.1.2(c))
have made all of the Base Contributions provided for by Section 4.1.2(a) during
any year and the Board of Managers determines that additional funding is
required and advisable, then the Company shall pursue its own additional needed
financing. If, after using its reasonable efforts to obtain such financing, the
Company cannot obtain such financing on terms that are acceptable to the
Company, then the Company may request that the Members make additional Capital
Contributions in excess of the Base Contributions of up to an additional
aggregate amount equal to such amount as agreed between the Members or, absent
any such agreement, [****] (the "Maximum Excess Contributions Amount") (each
Member having the right to contribute its pro rata share, determined by
multiplying such amount by such Member's Percentage Interest (the "Excess
Contributions")) to the Company upon the written request of the Board of
Managers. Any such written request shall include the amount of requested Capital
Contribution and the required funding date and shall be sent to the Members at
least twenty (20) Business Days prior to the required funding date. Such
required funding date shall correspond to the end of a Fiscal Month. Subject to
the dollar limitation set forth in this Section 4.1.2(b), there shall be no
limit on the number of such requests for Excess Contributions that the Board of
Managers may make in any year. Subject to Section 4.1.2(c), each Member shall
have the right to make any Excess Contribution pro rata based on its Percentage
Interest.

               (c)
If a Member fails to make a required Base Contribution or a requested Excess
Contribution by the required funding date set forth pursuant to Section 4.1.2(a)
or (b) above, then the other Member may elect to fund its portion and all or
part of the non-funding Member's portion of such Base Contribution or Excess
Contribution; provided, however, that in no event may a Member make during any
year aggregate Base Contributions, including those made for itself and for the
non-funding Member, in excess of the Maximum Base Contributions Amount or
aggregate Excess Contributions, including those made for itself and for the
non-funding Member, in excess of the Maximum Excess Contributions Amount,
without the prior written consent of the other Member.

               (d)
Upon the payment by either or both Members of any required Base Contribution or
requested Excess Contribution, the Company shall issue a number of additional
Units (rounded down to the nearest whole Unit) to the funding Member(s) equal to
the amount of the Base Contribution or Excess Contribution, as the case may be,
funded by the funding Member(s) divided by a fraction, the numerator of which is
the [****]of the Company's Assets, less the [****] of the Company's liabilities,
as of the required funding date immediately prior to the funding of the Base
Contributions or Excess Contributions, as the case may be, and the denominator
of which is the number of Units outstanding immediately prior to the funding of
the Base Contributions or Excess Contributions, as the case may be.

               (e)
The provisions of Sections 4.1.2(a)-(d) (including any obligation to make any
Base Contribution or Excess Contribution requested on or prior to [****]) shall
not apply following [****]unless neither Member has provided notice pursuant to
Section 8.2(f) prior to [****], in which case such provisions shall again be
applicable following [****].

16

**** Material omitted pursuant to a
request for confidential treatment under Rule 24b-2 of the Exchange Act of 1934.
Material filed separately with the Securities and Exchange
Commission.

ARTICLE 5.
MANAGEMENT

               5.1
Board of Managers

          5.1.1
Powers. Except as otherwise expressly provided in this Agreement, all management
powers over the business, property and affairs of the Company are exclusively
vested in a board of Managers (the "Board of Managers"), and no Member shall
have any right to participate in or exercise control or management power over
the business and affairs of the Company or otherwise to bind, act or purport to
act on behalf of the Company in any manner. Subject to the limitations set forth
in this Agreement, the Board of Managers shall have all the rights and powers
that may be possessed by a manager under the Act, which shall include, without
limitation, the power to incur indebtedness, the power to enter into agreements
and commitments of all kinds, the power to manage, acquire and dispose of
Company Assets, and all ancillary powers necessary or convenient to the
foregoing. Unless authorized by a Special Vote, no individual Manager may, in
his or her capacity as a Manager, act for the Board of Managers or have
authority to bind the Company. The Board of Managers may also designate one or
more persons to open bank accounts and conduct other banking business on behalf
of the Company. The Managers shall devote such time to the business and affairs
of the Company as is reasonably necessary for the performance of their duties,
but shall not be required to devote full time to the performance of such
duties.

          5.1.2
Evaluation of General Manager. The Board of Managers will be responsible for
supervision and evaluation of the Company's General Manager on an ongoing basis,
including at least an annual review of his or her performance to ensure he or
she is acting in accordance with prudent business practices.

               5.2
Number of Managers; Appointment of Managers

          The
Board of Managers shall initially consist of six (6) individuals (each such
individual, a "Manager"). Subject to Sections 5.3 and 5.4 below, three (3) of
the Managers shall be appointed by Micron and three (3) of the Managers shall be
appointed by Photronics. Unless a Manager resigns (including by death or
retirement) or is removed either by the Member who appointed such Manager or in
accordance with Section 5.3 or 5.4, each Manager shall hold office until a
successor shall have been duly appointed by the appointing Member. Each Member
having the right to nominate a Manager or Managers pursuant to this Section 5.2
shall have the right, in its sole discretion, to remove such Manager or Managers
at any time, by delivery of written notice to the other Member, the Company and
the Manager(s) to be removed. In the case of a vacancy in the office of a
Manager for any reason (including by reason of death, resignation, retirement,
expiration of such Manager's term or removal pursuant to the preceding
sentence), the vacancy shall be filled by the Member that nominated the Manager
in question; provided, however, that in the case of a vacancy created due to a
change in a Member's Percentage Interest as described in Section 5.3 or 5.4,
such vacancy shall be filled in accordance with Section 5.3 or 5.4. Micron
hereby selects the individuals specified on Exhibit B hereto to serve on the
initial Board of Managers. Photronics hereby selects the individuals specified
on Exhibit C hereto to serve on the initial Board of Managers.

17

**** Material omitted pursuant to a
request for confidential treatment under Rule 24b-2 of the Exchange Act of 1934.
Material filed separately with the Securities and Exchange
Commission.

               5.3
Effect of Reduction in Photronics' Percentage Interest on Photronics
Managers

          Subject
to Section 5.4.1 below, the number of Managers that Photronics can appoint to or
maintain on the Board of Managers shall depend on Photronics' Percentage
Interest as follows:

	Photronics' Percentage
      Interest	      	Number of Photronics
      Managers
	[****]		3
	[****]		1
	[****]		0

               5.4
Effect of Reduction in Micron's Percentage Interest on Micron
Managers

          Subject
to Section 5.4.1 below, the number of Managers that Micron can appoint to or
maintain on the Board of Managers shall depend on Micron's Percentage Interest
as follows:

	Micron's
      Percentage Interest	      	Number of Micron
      Managers
	[****]		3
	[****]		1
	[****]		0

          5.4.1
Procedure. If either Member's Percentage Interest should be below any of the
threshold levels set forth in Sections 5.3 or 5.4 above and if such Member (the
"Reducing Member") then has more designees serving on the Board of Managers than
the number to which it is entitled, such Reducing Member shall immediately
identify by written notice to the other Member the designee or designees on the
Board of Managers that will cease serving on the Board of Managers, and each
such designee shall thereupon cease to be a Manager or member of the Board of
Managers. If such Reducing Member fails to make such designation within five (5)
Business Days after written demand by the other Member (the "Increasing
Member"), the Increasing Member may designate by written notice to the Reducing
Member one or more (as appropriate) of the Reducing Member's designees on the
Board of Managers that will cease serving on the Board of Managers and each such
designee shall thereupon cease to be a Manager or member of the Board of
Managers. Upon the written notice described in either of the immediately
preceding two sentences, the Increasing Member may immediately fill the
vacancies created by such removals by written notice to the other Member
designating its selected Manager(s). Similarly, if a Member whose Percentage
Interest fell below any threshold level set forth in Section 5.3 or 5.4
subsequently increases its Percentage Interest above any such level, the process
shall be reversed.

18

**** Material omitted pursuant to a
request for confidential treatment under Rule 24b-2 of the Exchange Act of 1934.
Material filed separately with the Securities and Exchange
Commission.

               5.5
Chairman of the Board of Managers

          A
Chairman of the Board of Managers (the "Chairman of the Board") shall preside at
all meetings of the Board of Managers. The Chairman of the Board shall be
selected from among the Managers appointed by Micron; provided, however, that if
the Percentage Interest of Micron falls below [****], then the Chairman of the
Board will be selected by Photronics if Photronics' Percentage Interest is above
[****] or otherwise by the Board of Managers.

               5.6
Meetings of Members and of the Board of Managers; Quorum

          5.6.1
Member Meetings. At any time, and from time to time, the Board of Managers may,
but shall not be required to, call meetings of the Members. Special meetings of
the Members for any proper purpose or purposes may be called at any time by
either Member. Written notice of any such meeting (which may be given via
confirmed facsimile, confirmed e-mail or other manner provided for in Section
11.5) shall be given to all Members not less than five (5) Business Days nor
more than thirty-five (35) Business Days prior to the date of such meeting. Each
meeting of the Members shall be conducted by the Chairman of the Board of
Managers or any designee thereof. Each Member may authorize any Person by
written proxy to act for it or on its behalf on all matters in which the Member
is entitled to participate. Each proxy must be signed by a duly authorized
officer of the Member. All other provisions governing or otherwise relating to
the holding of meetings of the Members shall from time to time be established in
the sole discretion of the Board of Managers.

          5.6.2
Action by Member Consent. Any action which may be taken at any meeting of the
Members may be taken without a meeting, without prior notice and without a vote
if a consent in writing, setting forth the action so taken, is executed by all
Members.

          5.6.3
Board Meetings. The Board of Managers shall hold meetings at least once every
Fiscal Quarter. The presence of four (4) Managers (with at least fifty percent
(50%) of the Managers present being Micron Managers), in each case, in person or
by telephone conference or by other means of communication acceptable to the
Board of Managers, shall be necessary and sufficient to constitute a quorum for
the purpose of taking action by the Board of Managers at any meeting of the
Board of Managers. Each Member may authorize any Person by written proxy to act
for or on behalf of any Manager that such Member has the right to nominate on
all matters in which such Manager is entitled to participate. Each proxy must be
signed by a duly authorized officer of the Member. Each Member shall be
responsible for the expenses of the Manager(s) appointed by such Member in
connection with all meetings of the Board of Managers. Either Member may place
items on the agenda for any meeting of the Board of Managers, and the Chairman
of the Board of Managers will call for a vote on any matter at the reasonable
request of any Member.

19

**** Material omitted pursuant to a
request for confidential treatment under Rule 24b-2 of the Exchange Act of 1934.
Material filed separately with the Securities and Exchange
Commission.

          5.6.4
Notice; Waiver. The regular quarterly meetings of the Board of Managers
described in Section 5.6.3 shall be held upon not less than five (5) Business
Days written notice. Additional meetings of the Board of Managers may be held at
the request of any Manager, upon not less than five (5) Business Days' written
notice (which may be given via confirmed facsimile, confirmed e-mail or other
manner provided for in Section 11.5) or telephonic notice to each Manager (which
notice shall be provided to the other Managers by the requesting Manager). The
presence of any Manager at a meeting (including by means of telephone conference
or other means of communication acceptable to the Board of Managers) shall
constitute a waiver of notice of the meeting with respect to such Manager. No
action taken by the Managers at any meeting shall be valid unless the requisite
quorum is present.

          5.6.5
Voting of Managers. Except as otherwise expressly provided in this Agreement,
all actions, determinations or resolutions of the Board of Managers shall
require the affirmative vote or consent of a majority of the Board of Managers
present at any meeting at which a quorum is present; provided, however, that in
the event of an evenly split vote, the Chairman of the Board will automatically
receive an additional vote to break any such evenly split vote. Except as
provided in the prior sentence, each Manager shall be entitled to one (1) vote,
and Managers shall be entitled to cast their vote through proxies. The Board of
Managers may act without a meeting if the action is consented to in advance or
subsequently ratified, in each case in writing, by all of the
Managers.

          5.6.6
Meetings by Telecommunications. Managers and their proxies shall have the right
to participate in all meetings of the Board of Managers by means of a conference
telephone or similar communications equipment by means of which all persons
participating in the meeting can hear each other at the same time and
participation by such means shall constitute presence in person at a meeting.
Members and their representatives and proxies shall have the right to
participate in all meetings of the Members by means of a conference telephone or
similar communications equipment by means of which all persons participating in
the meeting can hear each other at the same time and participation by such means
shall constitute presence in person at a meeting.

          5.6.7
Reliance by Third Parties. Any Person dealing with the Company, the Micron
Member, the Photronics Member, any Manager or any Officer may rely upon a
certificate signed by any one Micron Manager and one Photronics Manager as to:
(a) the identity of any Manager or Officer; (b) the existence or non-existence
of any fact or facts which constitute a condition precedent to acts by the
Managers or Officers or in any other manner germane to the affairs of the
Company; (c) the Persons who are authorized to execute and deliver any
instrument or document for or on behalf of the Company; or (d) any act or
failure to act by the Company or as to any other matter whatsoever involving the
Company, the Micron Member, the Photronics Member, any Manager or any
Officer.

20

**** Material omitted pursuant to a
request for confidential treatment under Rule 24b-2 of the Exchange Act of 1934.
Material filed separately with the Securities and Exchange
Commission.

               5.7
Actions Requiring a Special Vote

          Notwithstanding
the provisions of Section 5.6.5 or any other provisions of this Agreement, the
Company may not, and no Member or Manager may cause the Company to, take any of
the following actions (or any other action specified in this Agreement as
requiring a Special Vote) without a Special Vote:

               (a)
effect a merger or consolidation (in a transaction or series of transactions) in
which the Company is not the surviving entity or in which the Company is the
surviving entity but in either case in which the Membership Interests or Units
possessing more than fifty percent (50%) of the total combined Membership
Interests or Units are transferred to a Person or Persons different than those
who held such interests immediately prior to the merger or consolidation or the
initial transaction culminating in such merger or consolidation;

               (b)
sell or otherwise transfer all or substantially all of the assets of the Company
to any other Person, including to another Company Entity;

               (c)
settle any lawsuit, administrative proceeding, tax claim or other legal
proceeding where any Company Entity pays the settlement of a dollar amount that
is greater than [****] of the fair market value (subject to the last paragraph
of this Section 5.7, as determined by the Board of Managers) of the assets of
the Company Entities taken as a whole;

               (d)
effect any investment in, or acquisition of, assets or equity interests
(including by a merger, consolidation or otherwise) by a Company Entity or
Company Entities that comprise greater than [****] of the fair market value of
the assets of the Company Entities taken as a whole, as determined by the Board
of Managers (other than in connection with the Company's routine cash management
functions);

               (e)
approve the fairness of pricing terms and the fairness of other terms having an
economic impact of any contract, agreement, arrangement or understanding (or any
series of related contracts, agreements, arrangements or understandings relating
to the same or substantially similar subject matter) entered into after the date
hereof between any Company Entity on the one hand, and either Member (or any of
their respective Affiliates) on the other hand, that involves actual or
potential payments to or from any Company Entity exceeding [****] in any Fiscal
Year or [****] in the aggregate over the life of the contract, agreement,
arrangement or understanding;

               (f)
approve the fairness of pricing terms and the fairness of other terms having an
economic impact of any amendment to any contract, agreement, arrangement or
understanding (or any series of related contracts, agreements, arrangements or
understandings relating to the same or substantially similar subject matter)
between any Company Entity on the one hand, and either Member (or any of their
respective Affiliates) on the other hand, which amendment involves (i) a change
in actual or potential payments to or from any Company Entity exceeding [****]
in any Fiscal Year or [****] in the aggregate over the life of the contract,
agreement, arrangement or understanding or (ii) a material reduction in the
services, rights or privileges received by any Company Entity under the
contract, agreement, arrangement or understanding without proportionate
reduction in fees, royalties or other payments to such Member (or its respective
Affiliates, provided that no Company Entity shall be deemed a Member Affiliate
for the purposes of this provision) thereunder;

21

**** Material omitted pursuant to a
request for confidential treatment under Rule 24b-2 of the Exchange Act of 1934.
Material filed separately with the Securities and Exchange
Commission.

               (g)
authorize any Company Entity to engage in or undertake any material activity
that is materially unrelated to the Company's pursuit of the Business (for
purposes of this subsection (g), "Business" shall mean all activities related to
or reasonably required in connection with the design, development fabrication
and sale of advanced photomasks);

               (h)
effect any distribution from the Company to its Members other than in cash or
any distribution in cash other than in accordance with Article 9 of this
Agreement;

               (i)
effect any resolution to wind-up the Company or any Company Entity (unless the
relevant governing documents or this Agreement expressly provide for "automatic"
dissolution upon the occurrence of specified events);

               (j)
effect the filing of any application or petition for bankruptcy, reorganization
or other similar proceedings under Applicable Law with respect to the Company or
any Company Entity;

               (k)
file any lawsuit by the Company or any Company Entity against any Person that is
a customer of Photronics;

               (l)
suspend the Company's operations for a period of greater than [****];

               (m)
issue any additional Units or Membership Interests, or securities convertible
into Units or Membership Interests, or admit any new Member other than pursuant
to the terms of this Agreement;

               (n)
change the Company's Fiscal Year; or

               (o)
[****].

               5.8
Compensation of Managers

          The
Managers shall not be entitled to any compensation in their capacities as
Managers unless otherwise agreed upon in writing by all of the
Members.

22

**** Material omitted pursuant to a
request for confidential treatment under Rule 24b-2 of the Exchange Act of 1934.
Material filed separately with the Securities and Exchange
Commission.

              
5.9 Other Activities

          Subject to
Applicable Law and the provisions of the Transaction Documents, the Members, their respective Affiliates and the
Managers may engage or invest in, and devote their time to, any other business
venture or activity of any nature and description (independently or with
others), whether or not such other activity may be deemed or construed to be in
competition with the Company. Neither the Company nor any Member, Affiliate of a
Member, or Manager shall have any right by virtue of this Agreement or the
relationship created hereby in or to such other venture or activity of any
Member or its Affiliates (or to the income or proceeds derived therefrom), and
the pursuit thereof, even if competitive with the business of the Company, shall
not be deemed wrongful or improper.

              
5.10 Accounting; Records and Reports

          5.10.1
Accounting and Fiscal Year. The books, records and accounts of the Company,
including for all applicable tax purposes, will be maintained in accordance with
such methods of accounting as shall be determined by the Board of Managers. The
fiscal year of the Company ("Fiscal Year"), including each of the fiscal
quarters (the "Fiscal Quarters") and each of the fiscal months ("Fiscal Months")
thereof, shall correspond to that of Micron for as long as Micron and/or an
Affiliate of Micron holds a fifty percent (50%) or greater Percentage Interest
in the Company in the aggregate. The Company shall have a taxable year which
complies with Section 706(b) of the Code.

          5.10.2
Books and Records. The Board of Managers shall cause to be kept, at such
location as the Board of Managers shall reasonably deem appropriate, full and
proper ledgers, other books of account, and records of all receipts and
disbursements and other financial activities of the Company in accordance with
Micron's record retention policies. The Board of Managers shall also cause to be
kept at such location copies of each of the following:

              
(a) a current list of the full name and last known address of each
Member, and the capital account, number of Units and Percentage Interest held by
each Member;

              
(b) a current list of the full name and last known address of each
Manager;

              
(c) the Certificate of the Company, any amendments to the Certificate,
and executed copies of any powers of attorney granted for the purpose of
executing the Certificate;

              
(d) the Company's federal, state and local income tax returns and
reports, if any, for the seven (7) most recent Fiscal Years;

              
(e) this Agreement and any amendments to this Agreement;

23

**** Material omitted pursuant to a
request for confidential treatment under Rule 24b-2 of the Exchange Act of 1934.
Material filed separately with the Securities and Exchange
Commission.

              
(f) financial statements of the Company for the five (5) most recent
Fiscal Years; and

              
(g) minutes of all meetings of the Board of Managers and the Members and
any written consents of the Board of Managers or the Members for actions taken
without a meeting.

          5.10.3 Reports. The Board of Managers shall also cause to be
sent to each Member of the Company, the following:

              
(a) within forty-five (45) days after the Effective Date, the Company
shall provide each Member with an unaudited balance sheet of the Company as of
the Effective Date;

              
(b) within 180 days following the end of each Fiscal Year, Schedule K-1
to IRS Form 1065 and such other information as may be reasonably required by the
Members for preparation of their respective federal, state and local income or
franchise tax returns;

              
(c) a copy of the Company's federal, state and local income tax or
information returns for each Fiscal Year, concurrent with the filing of such
returns;

              
(d) within seventy-five (75) days after the end of each Fiscal Year or as
soon thereafter as reasonably practicable, the Company shall provide each Member
with an audited balance sheet, income statement and statement of cash flows for
and as of the last day of the Fiscal Year then ended, audited in accordance with
GAAS by an auditor agreed to by Micron; provided, that Photronics shall
reimburse the Company for the cost of such audit;

              
(e) within forty-five (45) days after the end of each Fiscal Quarter or
as soon thereafter as reasonably practicable, the Company shall provide each
Member with an unaudited balance sheet, income statement and statement of cash
flows for and as of the last day of the year or quarter (as appropriate) then
ended, prepared in accordance with GAAP, as well as such other financial
information as any Member may reasonably request to enable such Member and its
Affiliates to prepare their consolidated quarterly and annual financial
statements; and

              
(f) within a reasonable period of time, notice of any material litigation
filed against the Company or any written claim by a Governmental Authority of
any material violation of any state, federal or foreign law, statute, rule or
regulation.

          5.10.4
Access to Company Books and Records.

              
(a) To the extent not in violation of Applicable Law, Members (personally
or through an authorized representative) may, for purposes reasonably related to
their interests in the Company, during reasonable business hours (i) examine and
copy (at their own cost and expense) the books and records of the Company,
including the records listed in Section 5.10.2, and (ii) have access to the
Company's management, internal and external accountants and attorneys, plans,
properties and other assets to conduct due diligence and other investigations
regarding the Business and assets of the Company at such Member's sole expense,
and the Company shall reasonably cooperate with such Member in such due
diligence and investigations. Upon reasonable notice, Photronics may also
request reasonable short-term and temporary access to the properties of the
Company by Photronics customers for technology review and validation. Any
information obtained as a result of this Section 5.10.4 shall be used by a
Member solely for purposes reasonably related to such Member's participation in
the Company and shall be subject to the Non-Disclosure Agreement.

24

**** Material omitted pursuant to a
request for confidential treatment under Rule 24b-2 of the Exchange Act of 1934.
Material filed separately with the Securities and Exchange
Commission.

              
(b) Any Member's request for documents or request to
inspect or copy documents or have access to the Company's management, plans,
properties and other assets under this Section 5.10.4 (i) may be made by that
Member or that Member's authorized representative and (ii) shall be made in
writing to the General Manager and shall state the purpose of such demand. If a
Member is not satisfied with the response of the General Manager, the Member may
make such request of the Technology Steering Committee and/or the Board of
Managers.

              
5.11 Indemnification and Liability of the Managers

          5.11.1
Indemnification. The Company shall indemnify and hold harmless each Manager, the
General Manager and all other Officers (individually, an "Indemnitee") to the
fullest extent permitted by Applicable Law from and against any and all losses,
claims, demands, costs, damages, liabilities, whether joint or several, expenses
of any nature (including reasonable attorneys' fees and disbursements),
judgments, fines, settlements and other amounts (each an "Indemnified Loss")
arising from any and all claims, demands, actions, suits or proceedings, civil,
criminal, administrative or investigative, in which the Indemnitee may be
involved as a defendant, or threatened to be involved as a defendant (other than
all claims, demands, actions, suits or proceedings brought by the Member who
nominated such Manager, if applicable), relating to the performance or
nonperformance of any act concerning the activities of the Company or by reason
of the Indemnitee's status as a Manager, General Manager or Officer, as
applicable, regardless of whether the Indemnitee retains such status at the time
any such Indemnified Loss is paid or incurred, if (a) the Indemnitee acted in
good faith and in a manner he or she reasonably believed to be in, or not
opposed to, the best interests of the Company and, in the case of a criminal
proceeding, had no reasonable cause to believe that his or her conduct was
unlawful, and (b) the Indemnitee's conduct did not constitute an act or omission
which involved intentional misconduct or a knowing violation of the law. The
termination of an action, suit or proceeding by judgment, order, settlement, or
upon a plea of nolo contendere or its equivalent, shall not, in and of itself,
create a presumption or otherwise constitute evidence that the Indemnitee acted
in a manner contrary to that specified in clauses (a) or (b) above.

          5.11.2
Expenses. Expenses incurred by an Indemnitee in defending any claim, demand,
action, suit or proceeding subject to this Section 5.11 shall be advanced by the
Company prior to the final disposition of such claim, demand, action, suit, or
proceeding.

25

**** Material omitted pursuant to a request for
confidential treatment under Rule 24b-2 of the Exchange Act of 1934. Material
filed separately with the Securities and Exchange Commission.

          5.11.3 Company Expenses. Any indemnification provided
hereunder shall be satisfied solely out of the Company Assets, as an expense of
the Company. No Member shall be subject to liability by reason of these
indemnification provisions.

          5.11.4 No
Other Rights. The provisions of this Section 5.11 are for the benefit of the
Indemnitees and shall not be deemed to create any rights for the benefit of any
other Person; provided, however, that the indemnification rights provided in
this Section 5.11 will inure to the benefit of the heirs, legal representatives,
successors, assigns and administrators of the Indemnitee.

          5.11.5 No
Liability. No Indemnitee shall be liable to the Company or to any Member for any
losses sustained or liabilities incurred as a result of any act or omission of
any Indemnitee if (a) the Indemnitee acted in good faith and in a manner he or
she reasonably believed to be in, or not opposed to, the best interests of the
Company and, in the case of a criminal proceeding, had no reasonable cause to
believe that his or her conduct was unlawful, and (b) the Indemnitee's conduct
did not constitute an act or omission which involved intentional misconduct or a
knowing violation of the law.

          5.11.6
Reliance Upon Agreement. To the extent that any Manager, General Manager or
Officer (each, a "Responsible Party") has, under Applicable Law or in equity,
duties (including, without limitation, fiduciary duties) to the Company, any
Member or other Person bound by the terms of this Agreement, such Responsible
Parties acting in accordance with this Agreement shall not be liable to the
Company, any Member, or any such other Person for its good faith reliance on the
provisions of this Agreement.

          5.11.7 No
Fiduciary Duties.

              
(a) In connection with the determination of any and all matters presented
for action to the Members, the Board of Managers or the Technology Steering
Committee, as applicable, the Members acknowledge and agree that each Member
will be acting on its own behalf and each Representative serving on the Board of
Managers or the Technology Steering Committee will be acting on behalf of the
Member that appointed such Representative.

              
(b) Each Member may act, and, to the fullest extent permitted by
Applicable Law, will be protected for acting, in its own interest (subject to
the express terms of any contract entered into by such Member) without regard to
the interest of the other Member or the Company or any of its subsidiaries, and,
subject to Section 5.11.7(E), each Representative may act, and, to the fullest
extent permitted by Applicable Law, will be protected for acting, at the
direction or control of, or in a manner that such Representative believes is in
the best interest of, the Member that appointed the Representative without
regard to the interest of the other Member or the Company or any of its
subsidiaries. Further, each Member may, to the fullest extent permitted by
Applicable Law (subject to the express terms of any contract entered into by
such Member), make decisions and exercise direction and control over the
decisions of the Representatives appointed by such Member without duty to or
regard for the interests of the other Member or the Company or any of its
subsidiaries.

26

**** Material omitted pursuant to a
request for confidential treatment under Rule 24b-2 of the Exchange Act of 1934.
Material filed separately with the Securities and Exchange
Commission.

              
(c) The Company, on its own behalf and on behalf of each
of its subsidiaries, and each Member waive, to the fullest extent permitted by
Applicable Law, (1) any claim or cause of action against any Member or Manager
or member of the Technology Steering Committee appointed by a Member based on
the determination of any and all matters presented for action to the Members,
the Board of Managers or the Technology Steering Committee, as applicable, (2)
breach of fiduciary duty, duty of care, duty of loyalty or any other duty or (3)
breach of the Act; provided, however, the foregoing will not limit any Member's
obligation under or liability for breach of the express terms of this Agreement
or any other agreement that they have entered into with the Company or any of
its subsidiaries or the other Member.

              
(d) The Company and each Member, by entering into this Agreement,
expressly acknowledge that neither Member nor any of its designated Managers
shall owe any fiduciary duties to the Company or to the other Member by virtue
of such Member's ownership of a majority of the Units of the Company or such
Member's Managers' positions on, and majority control of, the Board of Managers
or the Technology Steering Committee.

              
(e) The term "Representative" shall mean, with respect to a Member, the
Managers and members of the Technology Steering Committee appointed by such
Member, but not including, only for purposes of Section 5.11.7(c)(2), the
General Manager or any other officer of the Company (and each such officer shall
be bound by such fiduciary and other duties (including the duty of care and the
duty of loyalty) as would apply to an officer having comparable authority and
duties under the DGCL).

              
5.12 General Manager

          5.12.1
General Manager. The Company will have a General Manager (the "General Manager")
to be selected by Micron with input from the Board of Managers and Photronics;
provided, however, that if the Percentage Interest of Micron falls below
[****]then the General Manager will (after input from the Board of Managers and
Micron) be selected by Photronics if Photronics' Percentage Interest is above
[****] or otherwise by the Board of Managers.

          5.12.2
Duties and Powers of the General Manager. The General Manager shall, subject to
the control of the Board of Managers, have general supervision, direction and
control of the day-to-day affairs of the Company and shall report directly to
the Board of Managers. Unless limited by the Board of Managers or this
Agreement, he or she shall have the general powers and duties of management
usually vested in the office of chief executive officer of corporations and
shall have such other powers and duties as may be prescribed by the Board of
Managers. Only the General Manager, the Board of Managers or individuals
authorized by the General Manager or the Board of Managers shall have the
ability to enter into binding agreements or approve payments on behalf of the
Company.

27

**** Material omitted pursuant to a
request for confidential treatment under Rule 24b-2 of the Exchange Act of 1934.
Material filed separately with the Securities and Exchange Commission.

          5.12.3 Other Officers; Employment; Removal. The Company may
also have a chief financial officer, a secretary and such other officers as
determined by the Board of Managers, each of whom will be accountable to the
General Manager (the General Manager and any other officers elected in
accordance with this Section 5.12.3, each, an "Officer" and collectively, the
"Officers"). The General Manager and any other Officer may be removed at any
time upon an affirmative vote of the majority of the Board of
Managers.

          5.12.4
Duties and Powers of Chief Financial Officer. Any chief financial officer of the
Company shall keep and maintain, or cause to be kept and maintained, books and
records of accounts of the properties and business transactions of the Company,
including accounts of its assets, liabilities, receipts, disbursements, gains,
losses and capital. He or she shall disburse the funds of the Company as may be
ordered by the Board of Managers and shall render to the Board of Managers at
their request an account of all his or her transactions as chief financial
officer and of the financial condition of the Company. Authorizations with
respect to the Company's depositories, disbursement of funds and related banking
matters shall be as set forth in resolutions of the Board of
Managers.

          5.12.5
Duties and Powers of Secretary.

              
(a) Any secretary of the Company shall attend (in person or by telephone
conference) all meetings of the Board of Managers and all meetings of the
Members (whether any of such meetings are in person, by telephone conference or
both) and record all votes and the minutes of all proceedings in a book to be
kept for that purpose, and shall perform like duties for any standing committees
when requested by such committee.

              
(b) Any secretary of the Company shall keep, or cause to be kept, at the
principal executive office or at the office of the Company's transfer agent or
registrar, as determined by resolution of the Board of Managers, a register, or
a duplicate register, showing the names of all Members and their addresses,
Economic Interests and Percentage Interests, the number and date of certificates
issued for the same (if any), and the number and date of cancellation of every
certificate surrendered for cancellation (if any).

          5.12.6
General Provisions Regarding Officers.

              
(a) The Board of Managers may, from time to time, designate Officers of
the Company and delegate to such Officers such authority and duties as the Board
of Managers may deem advisable and may assign titles (including, without
limitation, president, vice-president and/or treasurer) to any such Officer.
Unless the Board of Managers otherwise determines, if the title assigned to an
Officer of the Company is one commonly used for Officers of a business
corporation, then, subject to the terms of this Agreement, the assignment of
such title shall constitute the delegation to such Officer of the authority and
duties that are customarily associated with such office. Any number of titles
may be held by the same Officer.

              
(b) Any Officer to whom a delegation is made pursuant to the foregoing
shall serve in the capacity delegated unless and until such delegation is
revoked by the Board of Managers for any reason or no reason whatsoever, with or
without cause, or such Officer resigns.

28

**** Material omitted pursuant to a
request for confidential treatment under Rule 24b-2 of the Exchange Act of 1934.
Material filed separately with the Securities and Exchange
Commission.

              
5.13 Technology Steering Committee

          The Company
will establish a Technology Steering Committee (the "Technology Steering
Committee") in accordance with the provisions of the Technology License
Agreement.

              
5.14 Non-Disclosure Agreement

          The parties
acknowledge and agree that the contents and terms and conditions of all of the
Transaction Documents and all proprietary or nonpublic information disclosed by
one party to another party in connection with the Transaction Documents is
subject to the Non-Disclosure Agreement.

              
5.15 Maintenance of Insurance

          The Company
shall at all times be covered by insurance of the types and in the amounts set
forth on Exhibit D. Such insurance coverage may be provided through the coverage
under one or more insurance policies maintained by the Company or by either
Member. A certificate of insurance will be provided to the Members annually
evidencing coverage.

              
5.16 Related Party Agreements

          Micron,
Photronics and the Company agree that any contract, agreement, amendment,
arrangement or understanding entered into after the date hereof between any
Company Entity on the one hand, and either Member (or any of their respective
Affiliates) on the other hand, shall be on an arms-length basis.

ARTICLE 6.
OPERATIONS

              
6.1 Headquarters

          The
Company's world headquarters shall be in Boise, Idaho.

29

**** Material omitted pursuant to a
request for confidential treatment under Rule 24b-2 of the Exchange Act of 1934.
Material filed separately with the Securities and Exchange
Commission.

              
6.2 Surplus Equipment

              
[****]

              
6.3 Printability Studies

              
[****]

              
6.4 Operations Plan; Annual Budget

          The Company
will operate in accordance with an operations plan, which plan shall be
initially developed and agreed upon by Micron and Photronics, and amended from
time to time by the Board of Managers and in no event less than annually. The
Board of Managers will also be responsible for approving an annual budget (the
"Annual Budget") on at least an annual basis.

ARTICLE 7.
DISPOSITION AND TRANSFERS OF INTERESTS

              
7.1 Holding of Membership Interest

          For so long
as Micron or Photronics, directly or indirectly, maintains a Membership Interest
in the Company, Micron or Photronics, as applicable, must own and hold such
Membership Interest either (a) itself or (b) through one or more wholly owned
(including indirect wholly owned) subsidiaries.

              
7.2 Transfer Moratorium

          No Member
may Transfer all or any portion of its Membership Interest to any other Person
without the prior written consent of the other Member and any such attempted
Transfer shall be deemed void and of no force or effect, nor shall Micron or
Photronics without the prior written consent of the other sell or transfer, or
allow to be sold or transferred, or in any way dispose of, its ownership
interest, either direct or indirect, in any wholly owned subsidiary (including
any indirect wholly owned subsidiary) that owns, directly or indirectly, the
Membership Interest held by Micron or Photronics, respectively, in each case
other than [****].

              
7.3 Purchase of Remaining Interest

          7.3.1 If
the Percentage Interest of a Member (the "Minority Member") drops to [****] or
less and remains at or below [****] for more than six (6) consecutive months,
the other Member or a wholly owned subsidiary thereof (such other Member or
Affiliate thereof, the "Majority Member") shall have the option to purchase all
of the remaining Interest of the Minority Member at a cash purchase price equal
to the Option Price, subject to the terms and conditions set forth below. The
Majority Member may exercise this purchase option by delivering a written notice
of its intent to exercise to the Minority Member. The closing of the purchase and sale of the Minority Member's remaining Interest
(the "Minority Closing") shall take place as of the last day of the Fiscal Month
in which the notice is delivered (unless such notice is delivered within the
last ten (10) days of the end of a Fiscal Month, in which case the Minority
Closing shall take place on the last day of the first full Fiscal Month
thereafter). Such Minority Closing shall take place at the principal office of
the Company or at such other location as the Majority Member and the Minority
Member may mutually determine. At the Minority Closing, (i) the Minority Member
shall transfer its remaining Interest in the Company to the Majority Member,
free and clear of any liens or encumbrances, (ii) the Majority Member shall pay
the Minority Member the Minority Closing Price by wire transfer of immediately
available funds and (iii) the Minority Member shall deliver to the Majority
Member such instrument or instruments of conveyance as the Majority Member
reasonably requests.

30

**** Material omitted pursuant to a
request for confidential treatment under Rule 24b-2 of the Exchange Act of 1934.
Material filed separately with the Securities and Exchange
Commission.

          7.3.2 Upon the Minority Closing, the Majority Member shall pay
to the Minority Member a sum (the "Minority Closing Price") equal to the product
of (i) the difference of [****]. Within five (5) Business Days after the
month-end balance sheet becomes available (prepared in accordance with GAAP
consistently applied and as of the last day of the Fiscal Month in which the
Minority Closing occurred), [****]. If the Option Price is greater than the
Minority Closing Price, the Majority Member shall deliver the difference to the
Minority Member by wire transfer of immediately available funds within three (3)
Business Days of such recalculation. If the Option Price is less than the
Minority Closing Price, the Minority Member shall refund the difference to the
Majority Member by wire transfer of immediately available funds within three (3)
Business Days of such recalculation.

              
7.4 Change in Control of Photronics

          7.4.1
[****].

          7.4.2
[****].

          7.4.3
[****].

          7.4.4
[****].

              
7.5 Purchase and Sale Agreement

          In the
event of any purchase and sale of Membership Interests under Section 7.3, 7.4 or
8.5.3, the parties thereto shall enter into a commercially reasonable agreement
to implement such purchase and sale. Such agreement will include that (a) the
selling Member is released from any obligation to make future capital
contributions to the Company and (b) income and loss for the year in which such
closing occurs will be allocated to the selling Member on a basis that reflects
the actual operations of the Company's business for the period prior to the
Closing and will not be allocated based on the product of the Company's income
and loss for the entire year times that percentage of the year in which the
selling Member held a Membership Interest.

31

**** Material omitted pursuant to a
request for confidential treatment under Rule 24b-2 of the Exchange Act of 1934.
Material filed separately with the Securities and Exchange
Commission.

ARTICLE 8.
DISSOLUTION, LIQUIDATION, AND TERMINATION OF THE COMPANY

              
8.1 Limitations

          The Company
may be dissolved, liquidated, and terminated only pursuant to the provisions of
this Article 8, and the parties hereto do hereby irrevocably waive, to the
extent permitted by Applicable Law, any and all other rights they may have to
cause a dissolution, liquidation or termination of the Company or a sale or
partition of any or all of the Company Assets in connection with such
dissolution or liquidation.

              
8.2 Exclusive Causes

         
Notwithstanding the Act, the following and only the following events
shall cause the Company to be dissolved, liquidated, and terminated:

              
(a) the election of all of the Members;

              
(b) the entry of a decree of judicial dissolution pursuant to Section
18-802 of the Act;

              
(c) any Member's election, if the Company ceases operation for more than
six (6) months unless due to Force Majeure (as defined in the Supply Agreement
dated as of the date hereof between Photronics and Micron);

              
(d) Photronics' election following a material breach of this Agreement or
any other material provision of any of the Transaction Documents by Micron and,
if the material breach is capable of cure, such material breach continues
uncured for a period (i) specified in such Transaction Document or (ii) of
ninety (90) days of a written notice from Micron to Photronics of such material
breach if no cure period is specified in such Transaction Document; provided
that if the breach in the case of (ii) is capable of being cured and the
breaching party has worked diligently and in good faith since the receipt of the
notice to cure such breach, but has not cured the breach during the allotted
time, the cure period will be extended for an additional thirty (30)
days;

              
(e) Micron's election following a material breach of this Agreement or
any other material provision of any of the Transaction Documents by Photronics;
and, if the material breach is capable of cure, such material breach continues
uncured for a period (i) specified in such Transaction Document or (ii) of
ninety (90) days of a written notice from Micron to Photronics of such material
breach if no cure period is specified in such Transaction Document; provided
that if the breach in the case of (ii) is capable of being cured and the
breaching party has worked diligently and in good faith since the receipt of the
notice to cure such breach, but has not cured the breach during the allotted
time, the cure period will be extended for an additional thirty (30)
days;

32

**** Material omitted pursuant to a
request for confidential treatment under Rule 24b-2 of the Exchange Act of 1934.
Material filed separately with the Securities and Exchange
Commission.

              
(f) either Member's election upon at least [****] notice
prior to (i) the ten-year anniversary of this Agreement or (ii) the last date of
each successive five-year period following the ten-year anniversary of this
Agreement, such termination to be effective upon such ten-year anniversary or
the last date of such five-year period, as applicable;

              
(g) the election by a Member with a Percentage Interest of at least 90%
to dissolve and wind up the affairs of the Company (which election shall not
require the consent of the other Member), upon delivery of written notice of
such election to the Company and the other Member;

              
(h) the occurrence of any other event that, under the Act, makes it
unlawful, impossible or impractical to carry on the business of the
Company;

              
(i) the election by either Member to dissolve and wind up the affairs of
the Company upon (a) the occurrence of a bankruptcy of the Company, provided
that the Member making such election is not in default of any payment obligation
to the Joint Venture Company or (b) the bankruptcy, dissolution or liquidation
of a Member, and further provided that, in either event, such election shall be
made only after entry by the court presiding over the bankruptcy of an order
granting relief from the automatic stay to make such election to the Member
making such election; or

              
(j) [****].

To the fullest extent permitted by law,
any dissolution of the Company other than as provided in this Section 8.2 shall
be a dissolution in contravention of this Agreement. The parties agree that the
failure of a Member to make Base Contributions (but not the failure of a Member
to make Excess Contributions) or the Transfer of Membership Interests by a
Member in contravention of this Agreement shall, among other matters, constitute
a material breach of this Agreement.

              
8.3 Effect of Dissolution

          The
dissolution of the Company shall be effective on the day on which the event
occurs giving rise to the dissolution, but the Company shall not terminate until
it has been wound up and its assets have been distributed as provided in Section
8.5.1 or 8.5.3 of this Agreement. Notwithstanding the dissolution of the
Company, prior to the termination of the Company, the business of the Company
and the affairs of the Members, as such, shall continue to be governed by this
Agreement.

              
8.4 No Capital Contribution Upon Dissolution

          Each Member
shall look solely to the Company Assets for all distributions with respect to
the Company, its Capital Contribution thereto, its Capital Account and its share
of Net Profits or Net Losses, and shall have no recourse therefor (upon
dissolution or otherwise) against any other Member. Accordingly, if any Member
has a deficit Capital Account balance (after giving effect to all contributions,
distributions and allocations for all taxable years, including the year during
which the liquidation occurs), then such Member shall have no obligation to make
any Capital Contribution with respect to such deficit, and such deficit shall
not be considered a debt owed to the Company or to any other Person for any
purpose whatsoever.

33

**** Material omitted pursuant to a
request for confidential treatment under Rule 24b-2 of the Exchange Act of 1934.
Material filed separately with the Securities and Exchange
Commission.

              
8.5 Liquidation

          8.5.1 Upon
dissolution of the Company, the Board of Managers (or other Person(s) designated
by a decree of court) shall act as the "Liquidators" of the Company. The
Liquidators shall liquidate the Company Assets, and after allocating (pursuant
to Article 10 of this Agreement) all income, gain, loss and deductions resulting
therefrom, shall apply and distribute the proceeds thereof as
follows:

              
(a) first, to (i) the payment of the obligations of the Company to third
parties, including, but not limited to and on a pari passu basis, taxes, debts,
lease and other payments to Persons other than Members or their Affiliates; (ii)
the expenses of liquidation; and (iii) the setting up of any reserves for
contingencies, debts or liabilities to Persons other than the Members or their
Affiliates, whether the whereabouts of the creditor is known or unknown, which
the Board of Managers may consider necessary;

              
(b) thereafter, amounts due to either Member or their respective
Affiliates (other than a Company Entity) pursuant to intellectual property
license agreements, consulting agreements, services agreements, subcontracting
agreements, lease agreements and other similar agreements; and

              
(c) thereafter, to the Members in proportion to the positive balances in
the Members' respective Capital Accounts, determined after taking into account
all Capital Account adjustments for the Company's taxable year during which such
liquidation occurs, by the end of the taxable year in which such liquidation
occurs or, if later, within ninety (90) days after the date of the
liquidation.

          8.5.2
Notwithstanding Section 8.5.1 of this Agreement, in the event that the Board of
Managers determines that an immediate sale of all or any portion of the Company
Assets would cause undue loss to the Members, the Board of Managers, in order to
avoid such loss to the extent not then prohibited by the Act, may either defer
liquidation of and withhold from distribution for a reasonable time any Company
Assets except those necessary to satisfy the Company's debts and obligations,
or, subject to Section 9.4, distribute the Company Assets to the Members in kind
(in accordance with the second sentence of Section 8.5.1).

          8.5.3
Notwithstanding Section 8.5.1 or 8.5.2 of this Agreement, in the event of
termination pursuant to Section 8.2 (other than pursuant to Section 8.2(d))
Micron shall have the right, exercisable within thirty (30) days of such
termination, to acquire, free and clear of all liens and other encumbrances (i)
from Photronics, Photronics' Membership Interest at a purchase price equal
[****]. The foregoing purchase price shall be determined (and adjusted as
necessary) in the manner provided in Section 7.4.3.

34

**** Material omitted pursuant to a
request for confidential treatment under Rule 24b-2 of the Exchange Act of 1934.
Material filed separately with the Securities and Exchange
Commission.

ARTICLE 9.
DISTRIBUTIONS

              
9.1 Distributions of Cash Available for
Distribution

          9.1.1 Use
of Cash. Subject to applicable legal and contractual restrictions and to Section
9.2 and Article 8, Company cash will be treated as follows (in the following
order of priority):

              
(a) First, cash will be retained in the Company in an amount sufficient
to fund the Company's operations. Such amount will take into consideration
scheduled debt service, lease and other payments to third parties and payments
of amounts due to either Member or their respective Affiliates pursuant to
intellectual property license agreements, consulting agreements, services
agreements, subcontracting agreements, lease agreements and other similar
agreements; and

              
(b) Second, subject to Section 9.1.2, any excess cash remaining will be
distributed at the discretion of the Board of Managers to Micron and Photronics
pro rata based on their Percentage Interests at the time of such
distribution.

          9.1.2
Excess Allocations. Subject to Section 9.2 and Article 8, to the extent a
Member's Percentage Interest is adjusted for any reason as provided in this
Agreement and the aggregate allocations of Net Profit (and similar items) net of
any allocations of Net Losses (and similar items) made to such Member pursuant
to Article 10 on a cumulative basis through the effective time of such
adjustment exceeded: (a) the aggregate distributions made to such Member
pursuant to Sections 9.1.1(b) and 9.4 plus (b) all amounts previously
distributed to such Member pursuant to this Section 9.1.2 through such effective
time (collectively, an "Excess Allocation"), then prior to the making of any
further distributions pursuant to Section 9.1.1(b), distributions shall first be
made pro rata among the Members according to their respective Excess Allocation
amounts existing at such time, to the extent thereof.

              
9.2 Distributions Upon Liquidation

         
Distributions made in conjunction with the final liquidation of the
Company shall be applied or distributed as provided in Article 8
hereof.

              
9.3 Withholding

          The Company
may withhold amounts in respect of allocations or distributions if it is
required to do so by any Applicable Law, and each Member hereby authorizes the
Company to withhold from or pay on behalf of or with respect to such Member such
amount of federal, state, local or foreign taxes that the Tax Matters Partner
determines the Company is required to withhold or pay with respect to any amount
distributable or allocable to such Member pursuant to this Agreement, provided
that the Tax Matters Partner shall provide Photronics with twenty (20) Business
Days advance written notice of the amount of any withholding to be made in
respect of allocations or distributions to Photronics (or any Affiliate of
Photronics) which notice shall demonstrate the calculation thereof. Any amount
paid on behalf of or with respect to a Member pursuant to this Section 9.3 shall
constitute a loan by the Company to such Member, which loan shall be repaid by
such Member within twenty (20) Business Days after notice from the Company that
such payment must be made unless: (i) the Company withholds such payment from a
distribution that would otherwise be made to the Company or (ii) the Tax Matters
Partner determines, in its sole discretion, that such payment may be satisfied
out of Company Assets available therefor which would, but for such payment, be
distributed to the Member. Any amounts withheld pursuant to this Section 9.3
shall be treated as having been distributed to such Member. Each Member hereby
represents that it has provided to the Company IRS Form W-9 and that it has
provided and will from time to time provide such other forms or documents as may
reasonably be required in order to establish the status of such Member for
purposes of the tax laws of any applicable jurisdiction. Each Member agrees to
indemnify and hold harmless the Company from any liability imposed on the
Company for (i) any action taken by the Company in reliance upon such
representation of tax withholding status or (ii) any failure to withhold from
any amount distributable or allocable, or deemed distributable or allocable, to
such Member pursuant to this Agreement. A Member's obligations hereunder shall
survive the dissolution, liquidation or winding up of the Company. If a
Governmental Authority asserts in writing to any Person that the Company failed
to withhold Tax at the time and/or in the amounts required by Chapter 3 of the
Code or comparable provisions of other Tax laws in respect of Photronics and/or
its Affiliates, then Photronics and/or its Affiliates, as applicable, shall
promptly upon receipt of a copy of such writing accompanied by a written notice
from the Company specifying that a payment is required pursuant to this Section
9.3 pay to such Governmental Authority an amount in full satisfaction of the
amount of Taxes so asserted by such Governmental Authority. If Photronics and
its Affiliates do not promptly pay such amount to such Governmental Authority,
then, unless Photronics provides satisfactory written evidence of settlement in
full of the matter asserted by the Governmental Authority, the Company shall
withhold such amount from the next distribution(s) to Photronics, shall promptly
pay such withheld amounts over to such Governmental Authority in payment of such
asserted liability for Taxes and shall treat the amounts so withheld and paid
over as actually distributed to Photronics.

35

**** Material omitted pursuant to a
request for confidential treatment under Rule 24b-2 of the Exchange Act of 1934.
Material filed separately with the Securities and Exchange
Commission.

              
9.4 Distributions in Kind

          Subject to
Section 8.5.3, no right is given to any Member to demand or receive any
distribution of property other than cash as provided in this Agreement. Upon a
vote of the Board of Managers and a Special Vote, the Board of Managers may
determine (subject to the approval of the Special Vote) to make a distribution
in kind of Company Assets to the Members, and such Company Assets shall be
distributed in such fashion as to ensure that the fair market value thereof (as
determined by the Board of Managers and approved by the Special Vote) is
distributed, and any items of gain or loss resulting from such distribution are
allocated, in accordance with this Article 9 and Articles 6 and 10
hereof.

              
9.5 Limitations on Distributions

         
Notwithstanding any provision to the contrary contained in this
Agreement, neither the Company nor the Board of Managers, on behalf of the
Company, shall be required to or shall knowingly make a distribution to any
Member or the holder of any Economic Interest on account of its Membership
Interest or Economic Interest in the Company (as applicable) in violation of the
Act or other Applicable Law.

ARTICLE 10.

ALLOCATIONS OF NET PROFITS AND NET
LOSSES

              
10.1 General Allocation of Net Profits and Losses

          10.1.1 Net
Profits and Net Losses shall be determined and allocated with respect to each
Fiscal Year or other period of the Company as of the end of such Fiscal Year or
other period and at such other times, if any, as the Board of Managers shall
determine is appropriate for purposes of administering this Agreement. Subject
to the other provisions of this Agreement, an allocation to a Member of a share
of Net Profits or Net Losses shall be treated as an allocation of the same share
of each item of income, gain, loss or deduction that is taken into account in
computing Net Profits or Net Losses.

36

**** Material omitted pursuant to a
request for confidential treatment under Rule 24b-2 of the Exchange Act of 1934.
Material filed separately with the Securities and Exchange
Commission.

          10.1.2 Subject to the other provisions of this Article 10, Net
Profits, Net Losses and any other items of income, gain, loss and deduction for
any Fiscal Year shall be allocated in proportion to the Members' respective
Percentage Interests.

              
10.2 Regulatory Allocations

         
Notwithstanding the foregoing provisions of this Article 10, the
following special allocations shall be made in the following order of
priority:

          10.2.1 If
there is a net decrease in Company Minimum Gain during a Company taxable year,
then, to the extent required by Regulations Section 1.704-2(f), each Member
shall be allocated items of Company income and gain for such taxable year (and,
if necessary, for subsequent years) in an amount equal to such Member's share of
the net decrease in Company Minimum Gain, determined in accordance with
Regulations Section 1.704-2(g)(2). This Section 10.2.1 is intended to comply
with the minimum gain chargeback requirement of Regulations Section 1.704-2(f)
and shall be interpreted consistently therewith.

          10.2.2 If
there is a net decrease in Member Minimum Gain attributable to a Member
Nonrecourse Debt during any Company taxable year, each Member who has a share of
the Member Minimum Gain attributable to such Member Nonrecourse Debt, determined
in accordance with Regulations Section 1.704-2(i)(5), shall, to the extent
required by Regulations Section 1.704-2(i)(4), be specially allocated items of
Company income and gain for such taxable year (and, if necessary, subsequent
years) in an amount equal to such Member's share of the net decrease in Member
Minimum Gain attributable to such Member Nonrecourse Debt, determined in a
manner consistent with the provisions of Regulations Section 1.704-2(g)(2).
This Section 10.2.2 is intended to comply with the partner nonrecourse debt
minimum gain chargeback requirement of Regulations Section 1.704-2(i)(4) and
shall be interpreted consistently therewith.

          10.2.3 If any Member unexpectedly receives an adjustment,
allocation, or distribution of the type contemplated by Regulations Section
1.704-1(b)(2)(ii)(d)(4), (5) or (6), and after receiving such adjustment,
allocation, or distribution, such Member has an Adjusted Capital Account
Deficit, items of income and gain shall be allocated to all such Members (in
proportion to the amounts of their respective Adjusted Capital Account Deficits)
in an amount and manner sufficient to eliminate the Adjusted Capital Account
Deficit of such Member as quickly as possible. This Section 10.2.3 is intended
to constitute a "qualified income offset" within the meaning of Regulations
Section 1.704-1(b)(2)(ii)(d) and shall be interpreted consistently
therewith.

          10.2.4 If
the allocation of Net Loss to a Member as provided in Section 10.1 would create
or increase an Adjusted Capital Account Deficit for such Member, there shall be
allocated to such Member only that amount of Net Loss as will not create or
increase an Adjusted Capital Account Deficit. The Net Loss that would, absent
the application of the preceding sentence, otherwise be allocated to such Member
shall be allocated to the other Members in accordance with their relative
Percentage Interests, subject to the limitations of this Section 10.2.4. If,
after the allocation of Net Loss pursuant to the preceding two sentences, no
additional amount of Net Loss can be allocated to any Member without creating or
increasing an Adjusted Capital Account Deficit for such Member, then Net Loss
shall be allocated to the Members in accordance with their relative Percentage
Interests. This Section 10.2.4 is intended to implement the alternate test for
economic effect set forth in Regulations Section 1.704-1(b)(2)(ii)(d) and shall
be interpreted consistently therewith.

37

**** Material omitted pursuant to a
request for confidential treatment under Rule 24b-2 of the Exchange Act of 1934.
Material filed separately with the Securities and Exchange
Commission.

          10.2.5 To the extent that an adjustment to the adjusted tax
basis of any Company Asset pursuant to Code Section 734(b) or Code Section
743(b) is required, pursuant to Regulations Section 1.704-1(b)(2)(iv)(m)(2) or
Regulations Section 1.704-1(b)(2)(iv)(m)(4), to be taken into account in
determining Capital Accounts as the result of a distribution to a Member in
complete liquidation of its Interest in the Company, the amount of such
adjustment to the Capital Accounts shall be treated as an item of gain (if the
adjustment increases the basis of the asset) or loss (if the adjustment
decreases such basis), and such gain or loss shall be specially allocated to the
Members in accordance with their interests in the Company in the event that
Regulations Section 1.704-1(b)(2)(iv)(m)(2) applies, or to the Members to whom
such distribution was made in the event that Regulations Section 1.704-1(b)(2)(iv)(m)(4) applies.

          10.2.6 The
Nonrecourse Deductions for each taxable year of the Company shall be allocated
to the Members in proportion to their Percentage Interests.

          10.2.7 The
Member Nonrecourse Deductions shall be allocated each year to the Member that
bears the economic risk of loss (within the meaning of Regulations Section 1.752-2) for the Member Nonrecourse Debt to which such Member Nonrecourse Deductions
are attributable.

          10.2.8 The allocations set forth in Sections 10.2.1, 10.2.2,
10.2.3, 10.2.4, 10.2.5, 10.2.6 and 10.2.7 (the "Regulatory Allocations") are
intended to comply with certain requirements of Regulations Sections 1.704-1(b)
and 1.704-2. Notwithstanding the provisions of Section 10.1.2, the Regulatory
Allocations shall be taken into account by the Board of Managers in specially
allocating other items of income, gain, loss and deduction among the Members so
that, to the extent possible, the net amount of such allocations of other items
and the Regulatory Allocations to each Member shall be equal to the net amount
that would have been allocated to each such Member if the Regulatory Allocations
had not occurred. In exercising its discretion under this Section 10.2.8, the
Board of Managers shall take into account future Regulatory Allocations that,
although not yet made, are likely to offset other Regulatory Allocations
previously made.

38

**** Material omitted pursuant to a
request for confidential treatment under Rule 24b-2 of the Exchange Act of 1934.
Material filed separately with the Securities and Exchange
Commission.

              
10.3 Tax Allocations

          10.3.1 Except as provided in Section 10.3.2, for income tax
purposes under the Code and the Regulations and for purposes of applicable state
and local law, each Company item of income, gain, loss and deduction shall be
allocated between the Members in the same manner as its correlative item of
"book" income, gain, loss or deduction is allocated pursuant to this Article
10.

          10.3.2 Tax
items with respect to Company Assets that are contributed to the Company with a
Gross Asset Value that varies from its basis in the hands of the contributing
Member immediately preceding the date of contribution shall be allocated between
the Members for income tax purposes pursuant to Regulations promulgated under
Code Section 704(c) or, if applicable, corresponding provisions of applicable
state or local law so as to take into account such variation. The Company shall
account for such variation under any permissible method under Section 704(c) as
determined by the Tax Matters Partner. If the Gross Asset Value of any Company
Asset is adjusted pursuant to subsection (2) of the definition of "Gross Asset
Value," subsequent allocations of income, gain, loss and deduction with respect
to such Company Asset shall take account of any variation between the adjusted
basis of such Company Asset for federal income tax purposes and its Gross Asset
Value under any permissible method under Section 704(c) as determined by the Tax
Matters Partner. Any tax credits will be allocated to the Members in accordance
with the requirements of applicable tax law. Allocations pursuant to this
Section 10.3.2 are solely for purposes of federal, state and local taxes and
shall not affect, or in any way be taken into account in computing, any Member's
Capital Account or share of Net Profits, Net Losses and any other items or
distributions pursuant to any provision of this Agreement.

              
10.4 Other Provisions

          10.4.1 For
any Fiscal Year during which any Membership Interest or Economic Interest or
portion thereof is Transferred between the Members or to another Person or is
otherwise disposed of or acquired, or there is for any other reason a change in
the Members' respective Percentage Interests, the portion of the Net Profits,
Net Losses and other items of income, gain, loss, deduction and credit with
respect to such Membership Interest or Economic Interest or portion thereof
shall be allocated and, to the extent necessary apportioned, under any method
allowed pursuant to Section 706 of the Code and the applicable Regulations, as
reasonably determined by the Board of Managers; provided, that the Board of
Managers shall utilize consistent methods with respect to the same or
substantially similar transactions and items in making such allocations or
apportionments with respect to all such changes in the Members' respective
Percentage Interests, whether occurring within a single Fiscal Year or in
different Fiscal Years.

          10.4.2 In
the event that the Code or any Regulations require allocations of items of
income, gain, loss, deduction or credit different from those set forth in this
Article 10, the Board of Managers is hereby authorized to make new allocations
in reliance on the Code and such Regulations, and no such new allocation shall
give rise to any claim or cause of action by any Member, provided that such
allocations are consistent with the advice of the Company Accountant or tax
counsel and are not likely to alter materially the amounts which each Member is
entitled to receive under the terms of this Agreement.

39

**** Material omitted pursuant to a
request for confidential treatment under Rule 24b-2 of the Exchange Act of 1934.
Material filed separately with the Securities and Exchange
Commission.

          10.4.3 For purposes of determining a Member's proportional
share of the Company's "excess nonrecourse liabilities" within the meaning of
Regulations Section 1.752-3(a)(3), each Member's interest in Net Profits shall
be such Member's Percentage Interest.

          10.4.4
Section 482 Adjustments.

              
(a) Company Section 482 Adjustment. If the Internal Revenue Service or
any applicable state or local taxing authority reallocates an item of income,
deduction or loss to the Company pursuant to Code Section 482 or any similar
rule or principle of law (a "Company Section 482 Allocation"), and a Member or
an Affiliate of such Member has a corresponding "correlative item," as
determined under Regulations Section 1.482-1(g) (the "Member Correlative
Item"), the item of income, deduction or loss constituting such Company Section
482 Allocation shall be specially allocated to and reflected in the Capital
Account of the Member who received (or whose Affiliate received) such Member
Correlative Item, and such Member shall be treated as making any corresponding
deemed capital contribution or receiving any corresponding deemed distribution,
with such deemed capital contribution or distribution, as the case may be,
reflected in the Capital Account of such Member.

              
(b) Member Section 482 Adjustment. If the Internal Revenue Service or any
applicable state or local taxing authority reallocates an item of income,
deduction or loss to a Member or an Affiliate of such Member pursuant to Code
Section 482 or any similar rule or principle of law (a
"Member Section 482 Allocation"), and the Company has a corresponding
"correlative item," as determined under Regulations Section 1.482-1(g) (the
"Company Correlative Item"), such Company Correlative Item shall be specially
allocated to and reflected in the Capital Account of the Member that received
(or whose Affiliate received) such Member Section 482 Allocation, and such
Member shall be treated as making any corresponding deemed capital contribution
or receiving any corresponding deemed distribution, with such deemed capital
contribution or distribution, as the case may be, reflected in the Capital
Account of such Member.

              
(c) Corresponding Treatment if
Foreign Adjustment. If any taxing authority outside the United States makes an
adjustment to the income, deduction or loss of the Company or a Member (or an
Affiliate of a Member) that is analogous to an adjustment under Code Section
482, the Board of Managers shall use commercially reasonable efforts to handle
any affected items of the Company in a manner analogous to the treatment of an
adjustment under Code Section 482 as set forth in Sections 10.4.4(a) and
10.4.4(b) above.

          10.4.5 The Members
acknowledge and are aware of the income tax consequences of the allocations made
by this Article 10 and hereby agree to be bound by the provisions of this
Article 10 in reporting their shares of the Company's income and loss for
federal, state and local income tax purposes. Without limiting the foregoing
sentence, each Member acknowledges that, while it presently has no plan or
intention to take a position in preparing a tax return that requires it to file
a notice of inconsistent treatment under Code Section 6222(b), if it intends to
do so in the future, it shall use its best efforts to provide at least ten (10)
days advance notice of such intent to the Company and shall, if so requested by
the Company, consult with the Tax Matters Partner concerning such
position.

40

**** Material omitted pursuant to a
request for confidential treatment under Rule 24b-2 of the Exchange Act of 1934.
Material filed separately with the Securities and Exchange
Commission.

All matters concerning the allocations and
other determinations provided for in this Article 10 and any accounting
procedures not expressly provided for in this Agreement shall be determined by
the Board of Managers in a manner consistent with the terms and intent of this
Agreement.

ARTICLE 11.
MISCELLANEOUS

              
11.1 Amendments

          Any
provision of this Agreement may be amended if, and only if, such amendment is in
writing and is duly executed by all Members; provided, however, that amendments
may be made to this Agreement from time to time by the Board of Managers,
without the consent of either Member, to take such actions as may be reasonably
necessary (if any) to insure that the Company will be treated as a partnership
for federal income tax purposes. Upon the making of any amendment to this
Agreement in accordance with the previous sentence, the Board of Managers shall
prepare and file such documents and certificates as may be required under the
Act and under any other Applicable Law.

              
11.2 No Waiver

          Any
provision of this Agreement may be waived if, and only if, such waiver is in
writing and is duly executed by the party against whom the waiver is to be
enforced. No failure or delay by any party in exercising any right, power or
privilege under this Agreement shall operate as a waiver thereof nor shall any
single or partial waiver or exercise thereof preclude the enforcement of any
other right, power or privilege.

              
11.3 Entire Agreement

          This
Agreement, together with the other documents, exhibits and schedules referred to
herein and therein, constitute the entire agreement between the parties hereto
pertaining to the subject matter hereof, and supersede any and all prior oral
and written, and all contemporaneous oral, agreements or understandings
pertaining thereto. There are no agreements, understandings, restrictions,
warranties or representations relating to such subject matter among the parties
other than those set forth herein and in the other documents, exhibits and
schedules referred to herein and therein.

              
11.4 Further Assurances

          Each of the
parties hereto does hereby covenant and agree on behalf of itself, its
successors and its assigns, without further consideration, to prepare, execute,
acknowledge, file, record, publish, and deliver such other instruments,
documents and statements, and to take such other action as may be required by
law or reasonably necessary or advisable to effectively carry out the purposes
of this Agreement.

41

**** Material omitted pursuant to a
request for confidential treatment under Rule 24b-2 of the Exchange Act of 1934.
Material filed separately with the Securities and Exchange
Commission.

              
11.5 Notices

          Unless
otherwise provided herein, all notices, requests, instructions or consents
required or permitted under this Agreement shall be in writing and will be
deemed given: (a) when delivered personally; (b) when sent by confirmed
facsimile; (c) ten (10) Business Days after having been sent by registered or
certified mail, return receipt requested, postage prepaid; or (d) three (3)
Business Days after deposit with an internationally recognized commercial
overnight carrier specifying next-day delivery, with written verification of
receipt. All communications will be sent to the addresses listed on Exhibit A
(or to such other address or facsimile number as may be designated by a party
giving written notice to the other parties pursuant to this Section 11.5).

              
11.6 Tax Matters

          11.6.1 Tax
Matters Partner.

              
(a) The Company shall file an election pursuant to Code Section
6231(a)(1)(B)(ii) to have Code Section 6231(a)(1)(B)(i) not apply. For so long
as Micron and/or any of its Affiliates has an aggregate Percentage Interest
greater than fifty percent (50%), Micron shall serve as
the Company's "Tax Matters Partner" (as defined in Code Section 6231(a)(7)) and
shall perform any similar or corresponding role under applicable state law. The
Tax Matters Partner shall perform the duties imposed on a Tax Matters Partner
under the Code and shall be entitled to expend Company funds for (or to be
reimbursed for) reasonable third-party costs relating thereto. All legal and
accounting fees relating to any audits of the Company shall be borne by the
Company; provided, that the Members shall bear the costs of any audits of their
separate tax returns. In the event the United States Internal Revenue Service or
any other applicable Governmental Authority notifies the Tax Matters Partner of
any proposed Proceeding relating to the Company's information or tax returns or
to the amount of the liability of the Company for any Tax, the Tax Matters
Partner shall promptly notify the other Members of such matter, shall provide
relevant factual information (to the extent known) describing any asserted
liability for Tax in reasonable detail and shall provide copies of any notice or
other documents received from the Internal Revenue Service or other applicable
Governmental Authority with respect to such matter. The Tax Matters Partner
shall at all times keep the other Members informed as to the status of all such
Proceedings.

              
(b) The Member designated as Tax
Matters Partner is hereby authorized to make all elections available to the
Company for federal, state, local, and foreign tax purposes, except that in no
event shall the Company file an election to be treated as a corporation or as an
association taxable as a corporation for United States federal income tax
purposes or for purposes of income or corporate franchise tax purposes under the
law of any State of the United States.

                   
(c) The Tax Matters Partner shall prepare or cause to be prepared all
appropriate income and information tax returns for the Company. All such returns
shall be subject to review by the other Member(s) before filing and shall be
delivered to the other Member(s) for review not fewer than ten (10) Business
Days in advance of the due date thereof (taking into account any extensions
actually obtained). All third-party costs and expenses reasonably incurred by
the Tax Matters Partner in performing its duties described in this Section 11.6
or otherwise in accordance with the terms of this Agreement (including legal and
accounting fees) shall be borne by the Company. Each Member shall provide to the
Tax Matters Partner such information as the Tax Matters Partner deems necessary
or appropriate in connection with its activities as Tax Matters Partner. The Tax
Matters Partner shall cooperate with the Members by providing to each Member
such information as the Member may reasonably request concerning the Company and
its transactions in connection with the determination of such Member's liability
for any Tax or any Proceeding relating thereto.

42

**** Material omitted pursuant to a
request for confidential treatment under Rule 24b-2 of the Exchange Act of 1934.
Material filed separately with the Securities and Exchange
Commission.

              
(d) The provisions of this Section 11.6 shall survive
the termination or dissolution of the Company and shall remain binding on the
Members for such period of time as is necessary to resolve any and all matters
regarding the Tax treatment of the Company and Tax items attributable to the
Company.

          11.6.2
Standards. The Tax Matters Partner and its Affiliates shall not be liable,
responsible, or accountable, in damages or otherwise, to the Company or to any
other Member(s) for doing any act or failing to do any act, with respect to the
Tax Matters Partner's duties set forth in this Section 11.6 or otherwise
performed, the effect of which may cause or result in loss or damage to the
Company or any Member(s), unless the Tax Matters Partner or one of its
Affiliates engages in gross negligence or willful misconduct.

              
11.7 Governing Law

          This
Agreement will be governed by and construed in accordance with the laws of the
State of Delaware, United States of America, as applied to agreements among
Delaware residents entered into and wholly to be performed within the State of
Delaware (without reference to any choice or conflicts of laws rules or
principles that would require the application of the laws of any other
jurisdiction).

              
11.8 Construction; Interpretation

          11.8.1
Certain Terms. The words "hereof," "herein," "hereto," "hereunder" and similar
words refer to this Agreement as a whole and not to any particular provision of
this Agreement. The term "including" is not limited and means "including without
limitation."

          11.8.2
Section References; Titles and Subtitles. Unless otherwise noted, all references
to Sections and Exhibits herein are to Sections and Exhibits of this Agreement.
The titles, captions and headings of this Agreement are inserted for convenience
of reference only and are not intended to be a part of or to affect the meaning
or interpretation of this Agreement.

          11.8.3
Reference to Persons, Agreements, Statutes. Unless otherwise expressly provided
herein, (i) references to a Person include its successors and permitted assigns,
(ii) references to agreements (including this Agreement) and other contractual
instruments shall be deemed to include all subsequent amendments, restatements
and other modifications thereto or supplements thereof and (iii) references to
any statute or regulation are to be construed as including all statutory and
regulatory provisions consolidating, amending, replacing, supplementing or
interpreting such statute or regulation.

43

**** Material omitted pursuant to a
request for confidential treatment under Rule 24b-2 of the Exchange Act of 1934.
Material filed separately with the Securities and Exchange
Commission.

          11.8.4
Presumptions. No party, nor its counsel, shall be deemed the drafter of this
Agreement for purposes of construing the provisions of this Agreement, and all
provisions of this Agreement shall be construed in accordance with their fair
meaning, and not strictly for or against any party.

              
11.9 Rights and Remedies Cumulative

          The rights
and remedies provided by this Agreement are cumulative and the use of any one
right or remedy by any party shall not preclude or waive its right to use any or
all other remedies. Said rights and remedies are given in addition to any other
rights the parties may have by law, statute, ordinance or otherwise.

              
11.10 No Assignment; Binding Effect

          Except as
otherwise expressly provided herein, no party may assign, delegate or otherwise
transfer any of its rights or obligations hereunder to any third party, whether
by assignment, transfer, Change in Control or other means, without the prior
written consent of each other party. Any attempted assignment in violation of
the foregoing shall be null and void. Subject to the foregoing, this Agreement
shall be binding on and inure to the benefit of the Members, their heirs,
executors, administrators, successors and all other Persons hereafter holding,
having or receiving an interest in the Company.

              
11.11 Severability

          If any
provision in this Agreement will be found or be held to be invalid or
unenforceable, then the meaning of said provision will be construed, to the
extent feasible, so as to render the provision enforceable, and if no feasible
interpretation would save such provision, it will be severed from the remainder
of this Agreement which will remain in full force and effect unless the severed
provision is essential and material to the rights or benefits received by any
party. In such event, the parties will use their respective best efforts to
negotiate, in good faith, a substitute, valid and enforceable provision or
agreement which most nearly effects the parties' intent in entering into this
Agreement.

              
11.12 Counterparts

          This
Agreement may be executed in counterparts, each of which so executed will be
deemed to be an original and such counterparts together will constitute one and
the same agreement. Execution and delivery of this Agreement by exchange of
facsimile copies bearing the facsimile signature of a party shall constitute a
valid and binding execution and delivery of this Agreement by such
party.

44

**** Material omitted pursuant to a
request for confidential treatment under Rule 24b-2 of the Exchange Act of 1934.
Material filed separately with the Securities and Exchange
Commission.

              
11.13 Dispute Resolution

          The parties
hereby agree that claims, disputes or controversies of whatever nature, arising
out of, in connection with, or in relation to the interpretation, performance or
breach of this Agreement (or any other agreement contemplated by or related to
this Agreement), shall be first raised to the chief executive officer or another
officer of each of the Members (appointed by such Member's chief executive
officer) for discussion and attempt at resolution in good faith among such chief
executive officers or any individuals appointed by such chief executive officers
for such discussions and attempt at resolution, and if after thirty (30) days of
such raising to the chief executive officers the parties are unable to come to a
resolution, each of the parties shall be free to pursue any such claim, dispute
or controversy in court.

              
11.14 Third-Party Beneficiaries

          None of the
provisions of this Agreement shall be for the benefit of or be enforceable by
any creditor of the Company or by any third-party creditor of any Member. This
Agreement is not intended to confer any rights or
remedies hereunder upon, and shall not be enforceable by, any Person other than
the parties hereto, their respective successors and permitted assigns and,
solely with respect to the provision of Section 5.11, each Indemnitee and each
other indemnified Person addressed therein.

              
11.15 Specific
Performance

          The parties agree
that irreparable damage will result if this Agreement is not performed in
accordance with its terms, and the parties agree that any damages available at
law for a breach of this Agreement would not be an adequate remedy. Therefore,
the provisions hereof and the obligations of the parties hereunder shall be
enforceable in a court of equity, or other tribunal with jurisdiction, by a
decree of specific performance, and appropriate injunctive relief may be applied
for an granted in connection therewith. Such remedies and all other remedies
provided for in this Agreement shall, however, be cumulative and not exclusive
and shall be in addition to any other remedies that a party may have under this
Agreement, at law or in equity.

              
11.16 Consequential Damages

          No party shall be
liable to any other party under any legal theory for indirect, special,
incidental, consequential or punitive damages, or any damages for loss of
profits, revenue or business, even if such party has been advised of the
possibility of such damages (it being understood that consequential damages
arising from the breach of the confidentiality restrictions set forth in the
Non-Disclosure Agreement shall not be considered to fall within any such
category of damages).

(Signature Page
Follows)

45

**** Material omitted pursuant to a
request for confidential treatment under Rule 24b-2 of the Exchange Act of 1934.
Material filed separately with the Securities and Exchange
Commission.

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

	MEMBERS
	 
	MICRON TECHNOLOGY,
  INC.
	 
	 

	By:      
      	 

	Name:       	 

	Title:      
	 

	 
	  
	PHOTRONICS, INC.
	 

	By:      
      	 

	Name:       	 

	Title:      
	 

S-1

	EXHIBIT A
	 
	Name and Address of		Gross Asset Value of		Capital Account		Percentage		Number of
      Units
	Members	      	Contributed Property	      	Balance	      	Interest	      	
	Micron Technology, Inc.						50.01%		50,010
	8000 S. Federal Way								
	Boise, Idaho 83716-9632				 	 			 
	Attn: Chief Operating		 				 	 	
	Officer			 					
	Fax: (208) 368-2548								
	 
	With a required copy to:								
	General Counsel								
	Fax: (208) 368-4540								
	Photronics, Inc.						49.99%		49,990
	15 Secor Road
Brookfield, CT 06804
Attention: Edwin
      L.
Lewis, Senior Vice
President and General
Counsel
Fax: (203)
      775-5601								
	  								
	And								
	 								
	15 Secor Road
Brookfield, CT 06804
Attention: Sean
      Smith,
Senior Vice President and
Chief Financial Officer
Fax:
      (203) 775-5601								
	 								

A-1

	EXHIBIT B

[****]

B-1

**** Material omitted pursuant to a
request for confidential treatment under Rule 24b-2 of the Exchange Act of 1934.
Material filed separately with the Securities and Exchange
Commission.

EXHIBIT C

Michael J. Luttati, Sean T. Smith and
Christopher J. Progler.

C-1

EXHIBIT D

INSURANCE POLICIES AT CLOSING

	1.       	Property Insurance:
      Coverage for "all risk" property insurance, insuring against physical
      damage on a replacement basis for assets, and insuring against resultant
      business interruption from physical damage on an actual-loss sustained
      basis. The property insurance limit must equal full replacement value of
      all physical property and one year business interruption
    insurance.
	 
	2.	Transit Insurance:
      Coverage for repair or replacement of capital equipment in transit up to
      the invoiced amount for the equipment.
	 
	3.	Liability
      Insurance:

	Commercial general liability insurance, including
  but not limited to contractual liability, personal injury, completed
  operations, product liability and host liquor liability, coverage for bodily
  injury and property damage liability, with a limit of not less than $50
  million for each loss occurrence and not less than $50 million in annual
  aggregate coverage.

 
	Automobile liability coverage for bodily injury
  and property damage liability with a limit of not less than $10 million for
  each loss occurrence and not less than $10 million in annual aggregate
  coverage, for owned, hired, and non-owned automobiles.

	4.       	Workers Compensation
      & Employers Liability: Statutory workers compensation coverage for
      employees, if any, of the Company and its subsidiaries, including
      employers' liability coverage with a limit of not less than $10 million
      for each loss occurrence and $10 million in annual aggregate
      coverage.

D-1

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00198-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00198-of-00352.parquet"}]]