Document:

q308exhibit10-53.htm

    
      EXHIBIT 10.53

      

      [***]
DENOTES CONFIDENTIAL MATERIALS OMITTED AND FILED SEPARATELY WITH THE SECURITIES
AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT

      

      NTC/MICRON
CONFIDENTIAL

      SUPPLY
AGREEMENT

       

      This
SUPPLY AGREEMENT, is made and entered into as of this 6th day of June, 2008 (the
“Closing Date”), by and
among Micron Technology, Inc., a Delaware corporation (“Micron”), Nanya Technology
Corporation (Nanya
Technology Corporation [Translation from Chinese]) (“NTC” and, together with
Micron, the “Purchasers”), a company
incorporated under the laws of the Republic of China (“ROC” or “Taiwan”) and MeiYa Technology
Corporation (MeiYa
Technology Corporation [Translation from Chinese]), a company
incorporated under the laws of the ROC (the “Joint Venture
Company”).

       

      RECITALS

       

      A.           The
Joint Venture Company is engaged in the manufacturing of Stack DRAM Products (as
defined hereinafter).

       

      B.           
Micron, NTC and the Joint Venture Company (each, a “Party” and collectively, the
“Parties”) desire the
Joint Venture Company to supply Conforming Wafers (as defined hereinafter)
and Secondary Silicon (as defined hereinafter) to Micron and NTC in
accordance with the Output Percentages (as defined hereinafter) of MNL
(as defined hereinafter) and NTC, respectively, upon the terms and subject to
the conditions set forth in this Agreement.

       

      AGREEMENT

       

      NOW,
THEREFORE, for good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, the Parties intending to be legally bound do
hereby agree as follows:

       

      ARTICLE
1

      DEFINITIONS;
CERTAIN INTERPRETIVE MATTERS

       

      1.1           Definitions.  In
addition to the terms defined elsewhere in this Agreement, capitalized terms
used in this Agreement shall have the respective meanings set forth
below:

       

      “Affiliate” means, with respect
to any specified Person, any other Person that directly or indirectly, including
through one or more intermediaries, controls, or is controlled by, or is under
common control with such specified Person; and the term “affiliated” has a meaning
correlative to the foregoing.

       

      “Agreement” means this Supply
Agreement.

      
        
          
            
               

               

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      “Applicable Law” means any
applicable laws, statutes, rules, regulations, ordinances, orders, codes,
arbitration awards, judgments, decrees or other legal requirements of any
Governmental Entity.

       

      “Audited Purchaser” shall have
the meaning set forth in Section
5.3(c).

       

      “Boundary Conditions” means,
with respect to any fab, a requirement that, at any point in time:

       

      (a)           there
shall be [***] qualified Process Nodes in use for the manufacture of Stack DRAM
Products; provided that
at such fab there also may be [***] unqualified Process Node in use for setup,
engineering and testing purposes so long as such unqualified Process Node is not
in use for the manufacture of Stack DRAM Products for eventual resale to end
customers of either Purchaser;

       

      (b)           such
fab shall manufacture Stack DRAM Products with [***] Design IDs for Micron;
and

       

      (c)           such
fab shall manufacture Stack DRAM Products with [***] Design IDs for
NTC.

       

      “Business Day” means a day that
is not a Saturday, Sunday or other day on which commercial banking institutions
in either the ROC or the State of New York are authorized or required by
Applicable Law to be closed.

       

      “Closing Date” shall have the
meaning set forth in the preamble to this Agreement.

       

      “Conforming Ratio” means for
any given period of time, the quotient, expressed as a percentage, of
(a) the number of Conforming Wafers produced during such period of time,
divided by (b) the number of Conforming Wafers and Secondary Silicon
produced during such period of time.

       

      “Conforming Wafer” means a
wafer containing Stack DRAM Products that has a minimum Die Yield of [***]% and
meets the applicable Specifications.

       

      “Control” (whether or not
capitalized) means the power or authority, whether exercised or not, to direct
the business, management and policies of a Person, directly or indirectly,
whether through the ownership of voting securities, by contract or otherwise,
which power or authority shall conclusively be presumed to exist upon possession
of beneficial ownership or power to direct the vote of [***] of the votes
entitled to be cast at a meeting of the members, shareholders or other equity
holders of such Person or power to control the composition of a majority of the
board of directors or like governing body of such Person; and the terms “controlling” and “controlled” have meanings
correlative to the foregoing.

       

      “Cycle-Time” means the time
required to process a wafer through a portion of the manufacturing process or
through the manufacturing process as a whole.

       

      “Demand Forecast” shall have
the meaning set forth in Section
3.1(a).

      
        
          
            
               

               

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      “Delivery Month” shall have the
meaning set forth in Schedule
4.8.

       

      “Design ID” means a part number
that is assigned to a unique Stack DRAM Design of a particular Stack DRAM
Product, which may include a number or letter designating a specific device
revision.

       

      “Design SOW” means
[***].

       

      “Die Yield” means the quotient,
expressed as a percentage, of (a) the number of Stack DRAM Products in die form
that are manufactured on a wafer and that meet the applicable
Specifications at
the time of Probe Testing, divided by (b) the maximum number of  such
die that could be manufactured on such wafer to meet the applicable
Specifications using the applicable Process Node.

       

      “Environmental Laws” means any
and all laws, statutes, rules, regulations, ordinances, orders, codes or binding
determinations of any Governmental Entity pertaining to the environment in any
and all jurisdictions in which the Joint Venture Company’s fabs are located,
including laws pertaining to the handling of wastes or the use, maintenance and
closure of pits and impoundments, and other environmental conservation or
protection laws.

       

      “Excursion” means a performance
deviation during the production process that is outside normal behavior, as
defined by historical performance or as established by a Purchaser and the Joint
Venture Company in writing in the applicable Specifications, which may impact
performance, Quality and Reliability or such Purchaser’s customer delivery
commitments for Stack DRAM Product from Conforming Wafers.

       

      “Fab Yield” means, for any
given period of time, the quotient, expressed as a percentage, of (a) the number
of Conforming Wafers produced during such period of time, divided by (b) the
number of all wafers produced during such period of time.

       

      “Final Price Adjustment Memo”
shall have the meaning set forth in Section
4.8(b).

       

      “Fiscal Month” means any of the
twelve financial accounting months within the Fiscal Year.

       

      “Fiscal Quarter” means any of
the four financial accounting quarters within the Fiscal Year.

       

      “Fiscal Year” means the fiscal
year of the Joint Venture Company for financial accounting
purposes.

       

      “Force Majeure Event” means the
occurrence of an event or circumstance beyond the reasonable control of the
Party and includes:  (a) explosions, fires, flood, earthquakes,
catastrophic weather conditions, or other elements of nature or acts of God; (b)
acts of war (declared or undeclared), acts of terrorism, insurrection, riots,
civil disorders, rebellion or sabotage; (c) acts of Governmental Entities; (d)
labor disputes, lockouts, strikes or other industrial action, whether direct or
indirect and whether lawful or unlawful; (e) failures or fluctuations in
electrical power or telecommunications service or equipment; and (f) delays

      
        
          
            
               

               

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      caused by
another Party’s or Third-Party nonperformance (except for delays caused by a
Party’s subcontractors or agents).

       

      “GAAP” means generally accepted
accounting principles.

       

      “Governmental Entity” means any
governmental authority or entity, including any agency, board, bureau,
commission, court, municipality, department, subdivision or instrumentality
thereof, or any arbitrator or arbitration panel.

       

      “Hazardous Substances” means
any asbestos, any flammable, explosive, radioactive, hazardous, toxic,
contaminating, polluting matter, waste or substance, including any material
defined or designated as a hazardous or toxic waste, material or substance, or
other similar term, under any Environmental Laws in effect or that may be
promulgated in the future.

       

      “Indemnified Losses” mean all direct,
out-of-pocket liabilities, damages, losses, costs and expenses (including
reasonable attorneys’ and consultants’ fees and expenses).

       

      “Indemnified Party” means
Micron, NTC or any of their respective Subsidiaries.

       

      “JDP Agreement” means that
certain JDP Agreement between NTC and Micron referred to on Schedule 2.1 of the
Master Agreement Disclosure Letter.

       

      “JDP Committee” means the
committee formed and operated by Micron and NTC to govern the performance of
Micron and NTC under the JDP Agreement in accordance with the JDP Committee
Charter.

       

      “JDP Committee Charter” means
the charter attached as Schedule 2 of the JDP
Agreement.

       

      “Joint Venture Agreement” means
that certain Joint Venture Agreement between NTC and MNL referred to on Schedule 2.1 of the
Master Agreement Disclosure Letter.

       

      “Joint Venture Company” shall
have the meaning set forth in the preamble to this Agreement.

       

      “[***] Report” shall have the
meaning set forth in Section
3.2(a).

       

      “Joint Venture Documents” means
the Master Agreement and each of the agreements listed on Schedules 2.1 through
2.5 of the
Master Agreement Disclosure Letter.

       

      “JVC” shall have the meaning
set forth in Schedule
4.8.

       

      “Manufacturing Capacity” means,
with respect to each of the Joint Venture Company’s fabs, the total work minutes
available for each Process Node being manufactured at such fab.

       

      “Manufacturing Committee” means
the manufacturing committee established by NTC and MNL pursuant to Section 7.2(b)(i) of
the Joint Venture Agreement.

       

      “Manufacturing Plan” shall have
the meaning set forth in the Joint Venture Agreement.

      
        
          
            
               

               

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      “Master Agreement” means that
certain Master Agreement between NTC and Micron, dated as of April __,
2008.

       

      “Master Agreement Disclosure
Letter” means that certain Master Agreement Disclosure Letter between NTC
and Micron, dated as of April ___, 2008, containing the schedules required by
the provisions of the Master Agreement.

       

      “Micron” shall have the meaning
set forth in the preamble to this Agreement.

       

      “Micron Term” shall have the
meaning set forth in Section
10.1(a).

       

      “MNL” means Micron
Semiconductor B.V., a private limited liability company organized under the laws
of the Netherlands.

       

      “Mutual Confidentiality
Agreement” means that certain Mutual Confidentiality Agreement among
Micron, MNL and NTC referred to on Schedule 2.1 of the
Master Agreement Disclosure Letter, as joined by the Joint Venture Company as of
the Closing Date.

       

      “NTC” shall have the meaning
set forth in the preamble to this Agreement.

       

      “NTC Term” shall have the
meaning set forth in Section
10.1(b).

       

      “[***]Report” shall have the meaning
set forth in Section
3.2(b).

       

      “Output Percentage” shall have
the meaning set forth in the Joint Venture Agreement.

       

      “Party” and “Parties” shall have the meanings
set forth in Recital B to this Agreement.

       

      “Performance
Criteria” means the factors of [***] as set forth in the
Manufacturing Plan in effect from time to time.

       

      “Permitted Disclosures” shall
have the meaning set forth in Section
3.4(a).

       

      “Person” means any natural
person, corporation, joint stock company, limited liability company,
association, partnership, firm, joint venture, organization, business, trust,
estate or any other entity or organization of any kind or
character.

       

      “Planning Forecast” shall have
the meaning set forth in Section
3.1(b).

       

      “[***]
Price”
means[***].

       

      “Price” or “Pricing” means the calculation
set forth on Schedule
4.8.

       

      “[***]Report” shall have the meaning
set forth in Section
3.2(c).

       

      “Probe Testing” means testing,
using a wafer test program as set forth in the applicable specifications, of a
wafer that has completed all processing steps deemed necessary to complete the
creation of the desired Stack DRAM integrated circuits in the die on such wafer,
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      of which
test is to determine how many and which of the die meet the applicable criteria
for such die set forth in the Specifications.

       

      “Probe Yield” means, with
respect to any period of time, the quotient, expressed as a percentage, of (a)
the number of Stack DRAM Products in die form meeting the applicable
Specifications during such period of time, divided by (b) the number of die
probed (excluding the number of die contained on scrapped wafers) during such
period of time.

       

      “Proforma Invoice” shall have
the meaning set forth in Section
4.8(a).

       

      “Process Node” means
[***].

       

      “Proposed Loading Plan” shall
have the meaning set forth in Section
3.1(c).

       

      “Purchase Order” shall have the
meaning set forth in Section
4.3.

       

      “Purchasers” shall have the
meaning set forth in the preamble to this Agreement.

       

      “Quality and Reliability” means
the quality and reliability standards for Conforming Wafers as set forth in the
Specification or the Manufacturing Plan.

       

      “Recoverable Taxes” shall have
the meaning set forth in Section
4.7(a).

       

      “Restriction Period” means,
with respect to any Segregated Employee, the period of time beginning on the
date such Person becomes a Segregated Employee and ends on the date that is
[***] months after the date such Person is no longer a Segregated
Employee.

       

      “ROC” shall have the meaning
set forth in the preamble to this Agreement.

       

      “Secondary Silicon” means a
wafer that fails to meet the applicable Specifications or a minimum Die Yield of
[***]%, provided that
such wafer otherwise conforms to the applicable Secondary Silicon Specifications
and has a minimum Die Yield of [***]% or such other minimum Die Yield as the
Parties may mutually agree.

       

      “Secondary Silicon
Specifications” means those specifications used to describe,
characterize, and define the quality and performance of Secondary Silicon, as
such specifications may be determined from time to time by the
Parties.

       

      “Segregated Employees” means
[***].

       

      “Shared Design ID Wafers” means
all wafers with the same Design ID that are intended to be sold to both Micron
and NTC in a particular Fiscal Month.

       

      “Ship Lot Line Yield” means,
[***].

       

      “SOW” means a statement of the
work that describes research and development work to be performed under the JDP
Agreement and that has been adopted by the JDP Committee pursuant to Section 3.2 of the
JDP Agreement.

      
        
          
            
               

               

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      “Specifications” means those
specifications used to describe, characterize, and define the quality and
performance of the applicable Conforming Wafer (or of the die thereon, as
applicable), as such specifications may be determined from time to time by the
Parties.

       

      “Stack DRAM” means dynamic
random access memory cell that functions by using a  capacitor arrayed
predominantly above the semiconductor substrate.

       

      “Stack DRAM Design” means, with
respect to a Stack DRAM Product, the corresponding design components, materials
and information listed on Schedule 3 of the JDP
Agreement or as otherwise determined by the JDP Committee in a SOW.

       

      “Stack DRAM Module” means one
or more Stack DRAM Products in a JEDEC-compliant package or module (whether as
part of a SIMM, DIMM, multi-chip package, memory card or other memory module or
package).

       

      “Stack DRAM Product” means any
memory comprising Stack DRAM, whether in die or wafer form.

       

      “Subsidiary” means, with
respect to any specified Person, any other Person that directly or indirectly,
including through one or more intermediaries, is controlled by such specified
Person.

       

      “Taiwan” shall have the meaning
set forth in the preamble to this Agreement.

       

      “Taiwan GAAP” means GAAP used
in the ROC, as in effect from time to time, consistently applied for all periods
at issue.

       

      “Technology Transfer Agreement”
means that certain Technology Transfer Agreement between NTC, Micron and the
Joint Venture Company referred to on Schedule 2.5 of the
Master Agreement Disclosure Letter.

       

      “Third Party” means any Person,
other than NTC, Micron, the Joint Venture Company or any of their respective
Subsidiaries.

       

      “Third Party Claim” means
any claim, demand, lawsuit, complaint, cross-complaint or counter-complaint,
arbitration, opposition, cancellation proceeding or other legal or arbitral
proceeding of any nature brought in any court, tribunal or judicial forum
anywhere in the world, regardless of the manner in which such proceeding is
captioned or styled brought by any Third Party.

       

      “TTA 68-50” means that certain
Technology Transfer Agreement for 68-50 nm Process Nodes between Micron and the
Joint Venture Company referred to on Schedule 2.4 of the
Master Agreement Disclosure Letter.

       

      “US GAAP” means GAAP used in
the United States, as in effect from time to time, consistently applied for all
periods at issue.

       

      “Wafer Start” means the
initiation of manufacturing services with respect to a wafer.

      
        
          
            
               

               

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      “Warranty Claim Period” shall
have the meaning set forth in Section
6.2.

       

      “WIP” means work in process at
any of the Joint Venture Company’s fabs, including all wafers in wafer
fabrication and sort and all completed Conforming Wafers and Secondary Silicon
not yet delivered to a Purchaser.

       

      “WIP Data” means in line
inventory data, including wafer numbers, lot numbers, unit volumes, wafer
volumes, Cycle-Times, Die Yield, Fab Yield, Probe Yield and Ship Lot Line
Yield.

       

      “WSTS Forecast” means the
forecast of semiconductor prices prepared by WSTS, Inc.

       

      1.2           Certain Interpretive
Matters.

       

      (a)           Unless
the context requires otherwise, (i) all references to Sections, Articles,
Exhibits, Appendices or Schedules are to Sections, Articles, Exhibits,
Appendices or Schedules of or to this Agreement, (ii) each accounting term not
otherwise defined in this Agreement (A) with respect to Micron, has the meaning
commonly applied to it in accordance with US GAAP, and (B) with respect to NTC
and the Joint Venture Company, has the meaning commonly applied to it in
accordance with Taiwan GAAP, (iii) words in the singular include the plural and
vice versa, (iv) the term “including” means “including
without limitation,” and (v) the terms “herein,” “hereof,” “hereunder” and words of
similar import shall mean references to this Agreement as a whole and not to any
individual section or portion hereof.  All references to “$” or dollar amounts will be
to lawful currency of the United States of America.  All references to
“day” or “days” mean calendar days, and
all references to “quarter(ly),” “month(ly)” or “year(ly)” mean Fiscal Quarter,
Fiscal Month or Fiscal Year, respectively, unless the context requires
otherwise.

       

      (b)           No
provision of this Agreement will be interpreted in favor of, or against, any
Party by reason of the extent to which (i) such Party or its counsel
participated in the drafting thereof, or (ii) such provision is inconsistent
with any prior draft of this Agreement or such provision.

       

      ARTICLE
2

      OBLIGATIONS OF THE JOINT
VENTURE COMPANY;

      PROCESSES AND
CONTROLS

       

      2.1           General
Obligations.  The Joint Venture Company shall:

       

      (a)           manufacture
Conforming Wafers for each Purchaser in accordance with (i) the Boundary
Conditions and (ii) the Manufacturing Plan and applicable Specifications
developed in response to the Demand Forecasts provided by such Purchaser to the
Joint Venture Company in accordance with Article
3;

       

      (b)           supply
Conforming Wafers and Secondary Silicon to each Purchaser in accordance with the
purchasing process set forth in Article
4;

      
        
          
            
               

               

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      (c)           provide
and develop fabs and operations to meet Manufacturing Capacity according to the
Manufacturing Plan in effect from time to time and the obligations set forth
herein; and

       

      (d)           operate
its fabs so that Stack DRAM Product output from any one fab does not differ
materially from that of any other fab as to the Specifications and Performance
Criteria.

       

      2.2           Process; Design
Information.

       

      (a)           Micron
agrees to provide to the Joint Venture Company:  (i) such process
technology or information as is required to be disclosed under the TTA 68-50 and
the Technology Transfer Agreement; and (ii) design information reasonably
required to manufacture the Conforming Wafers for each Stack DRAM Product to be
purchased by Micron pursuant to this Agreement.

       

      (b)           NTC
agrees to provide to the Joint Venture Company:  (i) such process
technology or information as is required to be disclosed under the Technology
Transfer Agreement; and (ii) design information reasonably required to
manufacture the Conforming Wafers for each Stack DRAM Product to be purchased by
NTC pursuant to this Agreement.

       

      (c)           Unless
the Purchasers mutually agree otherwise, [***].

       

      2.3           Control;
Processes.  The Parties shall review the Joint Venture
Company’s control and process mechanisms, including such mechanisms that are
utilized to ensure that all parameters of the Specifications and Performance
Criteria are met or exceeded in the Joint Venture Company’s manufacture of
Conforming Wafers.  The Parties agree to work together in good faith
to define mutually agreeable control and process mechanisms, including the
following:  [***].

       

      2.4           Production
Masks.  Until a second source for masks is qualified by the JDP
Committee for the 68 nm Process Node or 50 nm Process Node or a particular Stack
DRAM Product pursuant to Section 3.7 of the
JDP Agreement, and then except to the extent of such qualification, the Joint
Venture Company shall order all masks required under this Agreement from
[***].  Upon the qualification of a second source for masks for a
particular Process Node or Stack DRAM Product by the JDP Committee in accordance
with Section
3.7 of the JDP Agreement, the Joint Venture Company shall comply with the
instructions from time to time of the Manufacturing Committee with regards to
whether such qualified second source or [***] will be used to create, maintain,
repair and replace the masks required for such Process Nodes or Stack DRAM
Products under this Agreement.  The Joint Venture Company shall have
possession, but not ownership of any underlying copyrights, mask works or other
intellectual property, of any physical production masks which the Joint Venture
Company obtains in accordance with this Section
2.4.

       

      2.5           Designation of
WIP.

       

      (a)           WIP Associated With Shared
Design ID Wafers.  The Joint Venture Company shall ensure that
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      purchased
by both Purchasers is designated for both Purchasers from Wafer Start, and the
Conforming Wafers and Secondary Silicon resulting therefrom shall be allocated
to the Purchasers in proportion to, in the case of Micron, MNL’s Output
Percentage and, in the case of NTC, its Output Percentage.

       

      (b)           Other
WIP.  The Joint Venture Company shall ensure that WIP at its
fabs associated with Conforming Wafers other than Shared Design ID Wafers to be
purchased by a Purchaser is designated for such Purchaser from Wafer
Start.

       

      2.6           Subcontractors.  The
Joint Venture Company may utilize subcontractors, subject to all subcontractors
being approved by the Purchasers, which approval shall not be unreasonably
withheld or delayed.  The Joint Venture Company shall ensure that all
contracts with subcontractors (a) shall provide the Joint Venture Company with
the same level of access and controls as the Joint Venture Company provides to
the Purchasers in this Agreement and (b) contain customary nondisclosure
obligations in a form reasonably acceptable to the Purchasers.

       

      2.7           [***].  In
addition to the [***] Report and the monthly review requirements set forth in
Section 3.3,
the Joint Venture Company shall promptly notify each Purchaser of
[***].

       

      2.8           Traceability; Data
Retention.  The Parties shall review the Joint Venture
Company’s (i) [***]process and producing the WIP Data and (ii) data retention
policy in regards to the WIP Data.  The Joint Venture Company agrees
to maintain the WIP Data for a minimum of [***].

       

      2.9           Access to WIP
Data.  The Joint Venture Company shall provide each Purchaser
with full access to its respective WIP Data (including with respect to Shared
Design ID Wafers) [***].

       

      2.10           Additional Customer
Requirements.

       

      (a)           Micron
shall inform the Joint Venture Company in writing of any supplier requirements
of any Micron customer relating to any of the Joint Venture Company’s fabs at
which Stack DRAM Product is manufactured for Micron.  Micron and the
Joint Venture Company shall work together in good faith to satisfy such
requirements.

       

      (b)           NTC
shall inform the Joint Venture Company in writing of any supplier requirements
of any NTC customer relating to any of the Joint Venture Company’s fabs at which
Stack DRAM Product is manufactured for NTC.  NTC and the Joint Venture
Company shall work together in good faith to satisfy such
requirements.

       

      2.11           Statement Regarding
Anticipated Share of Manufacturing Capacity.  No later than
[***] days prior to the beginning of each Fiscal Quarter, the Joint Venture
Company shall deliver to each Purchaser a statement setting forth such
Purchaser's anticipated share of the Manufacturing Capacity of the Joint Venture
Company at each of the Joint Venture Company’s fabs for each of the upcoming
[***] Fiscal Quarter, based on, in the case of Micron, MNL’s Output Percentage
(subject to change from time to time in accordance with the Joint Venture
Agreement) and, in the case of NTC, its Output Percentage (subject to change
from time to time in accordance with the Joint Venture Agreement), on
[***].  Such statement shall include [***].

      
        
          
            
               

               

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      ARTICLE
3

      PLANNING MEETINGS AND
FORECASTS;

      PERFORMANCE REVIEWS AND
REPORTS

       

      3.1           Planning and
Forecasting.

       

      (a)           At
a point in each Fiscal Quarter as agreed by the Parties, each Purchaser shall
provide the Joint Venture Company with a written non-binding forecast of such
Purchaser’s demand (a “Demand
Forecast”) for the next [***] Fiscal Quarters or as may be otherwise
agreed by the Parties.  All Demand Forecasts (i) shall include [***]
and (ii) shall be [***].

       

      (b)           The
Joint Venture Company shall furnish each Purchaser with a written response
within [***] Business Days of receiving such Purchaser’s Demand Forecast,
indicating its Manufacturing Capacity during the period covered by such Demand
Forecast and [***] outlined in such Demand Forecast that the Joint Venture
Company can commit to deliver.  This written response (the “Planning Forecast”) shall
include:

       

      (i)        
   [***]; and

       

      (ii)           forecasted
[***].

       

      (c)           Based
on the Planning Forecasts, the Joint Venture Company shall develop a [***]
Fiscal Quarter proposed loading plan [***] for such period (“Proposed Loading Plan”). The
Joint Venture Company shall provide each Purchaser with the Proposed Loading
Plan at least [***] Business Days prior to its review by the Manufacturing
Committee.

       

      (d)           The
Joint Venture Company shall submit the Proposed Loading Plan, Planning Forecasts
and other requested information to the Manufacturing Committee for
endorsement.  Once endorsed by the Manufacturing Committee, the
Proposed Loading Plan shall become part of the Manufacturing Plan.

       

      3.2           Monthly
Reports.

       

      (a)           [***]
Reports.  [***], the Joint Venture Company shall deliver to
each Purchaser a report (each, a “[***] Report”) which shall
include:

       

      (i)       
    [***];

       

      (ii)           [***];
and

       

      (iii)          [***].

       

      Neither
Purchaser will use or disclose the [***] Reports, or the contents thereof,
received by such Purchaser in contravention of any Applicable Law.

       

      (b)         
 [***]
Report.  Within [***] days after the end of each Fiscal Month,
the Joint Venture Company shall deliver to each Purchaser a report (the “[***] Report”), which shall
include:

      
        
          
            
               

               

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      (i)          
 a comparison [***];

       

      (ii)           a
comparison of [***];

       

      (iii)          a
description of [***]; and

       

      (iv)          a
description of [***];

       

      (c)           [***]
Reports.  Within [***] days after the end of each Fiscal Month,
each Purchaser shall deliver to the Joint Venture Company a report (each, a
“[***] Report”), [***]
delivered to such Purchaser during the Delivery Month just ended.  The
Joint Venture Company will not use or disclose the [***] Reports, or the
contents thereof, received by the Joint Venture Company in contravention of any
Applicable Law.

       

      3.3           Performance
Reviews.

       

      (a)           The
Parties shall hold a monthly meeting, the primary purposes of which shall be to
review and discuss the most recent [***] Report and the Performance Criteria and
to mutually agree on operational adjustments if necessary.

       

      (b)           Each
Purchaser (separately) and the Joint Venture Company shall hold a monthly
meeting to review and discuss (i) at the election of such Purchaser, the most
recent [***] Report received by such Purchaser, and (ii) at the election of the
Joint Venture Company, the most recent [***] Report delivered by such
Purchaser.

       

      (c)           The
monthly meetings required by this Section 3.3 shall be
held on dates to be agreed to by the Parties intended to attend such meetings;
provided that (i) the
meeting required by Section 3.3(a) shall
not be held prior to the delivery of the [***] Report by the Joint Venture
Company, and (ii) the meetings required by Section 3.3(b) shall
not be held prior to the delivery of the [***] Report and the applicable [***]
Report by the Joint Venture Company and the delivery of the [***] Report by the
applicable Purchaser.

       

      3.4           Restrictions on Access to
Pricing Information; Nonsolicitation of Segregated
Employees.

       

      (a)           Joint Venture Company
Restrictions on Access to Information Related to Pricing.  The
Joint Venture Company shall prevent any Person that is not a Segregated Employee
from obtaining access to the Pricing information (including the [***] Reports),
or the data from which Pricing information is derived, delivered to, or created
by, the Joint Venture Company under this Agreement, except that the Joint
Venture Company may provide (i) a Purchaser with its [***] Reports and the
Proforma Invoices and Final Price Adjustment Memos delivered to such Purchaser
under Section
4.8, and the data from which such [***] Reports, Proforma Invoices or
Final Price Adjustment Memos are derived, and (ii) any independent Third Party
auditor acting as contemplated by Section 5.3 with such
information as such auditor may request that is reasonably relevant to the
applicable inspection and audit (the items in clauses (i) and (ii) being
referred to as the "Permitted
Disclosures").  Without limiting the generality of the
foregoing, the Joint Venture Company shall (x) develop, maintain, implement and
enforce policies that (A) prohibit all Segregated Employees from disclosing, or
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      Pricing
information (including the [***] Reports) to Persons that are not Segregated
Employees, other than the Permitted Disclosures and (B) require all Segregated
Employees to store all physical files related to Pricing (including the [***]
Reports) in secure locations that are not accessible by non-Segregated
Employees, (y) segregate the office space of the Segregated Employees from other
employees of the Joint Venture Company, and (z) maintain all electronic files
containing Pricing information (including the [***] Reports) in confidential
password protected files.  Neither Purchaser shall take any action
that reasonably should be expected to cause the Joint Venture Company to violate
this Section
3.4.

       

      (b)           Even
if permitted under Section 4.19 of the
Master Agreement, the Purchasers shall not, and shall cause their respective
Affiliates not to, directly or indirectly recruit, solicit or hire, or make
arrangements to recruit, solicit or hire, any current or former Segregated
Employee during the Restriction Period.

       

      ARTICLE
4

      PURCHASE AND SALE OF
PRODUCTS

       

      4.1           Product
Quantity.

       

      (a)           Micron
shall purchase from the Joint Venture Company all of the Conforming Wafers
manufactured using MNL’s Output Percentage (as the same may change from time to
time) of the aggregate Manufacturing Capacity of the Joint Venture
Company.

       

      (b)           NTC
shall purchase from the Joint Venture Company all of the Conforming Wafers
manufactured using NTC’s Output Percentage (as the same may change from time to
time) of the aggregate Manufacturing Capacity of the Joint Venture
Company.

       

      (c)           Notwithstanding
anything in Sections
4.1(a) and 4.1(b) to the
contrary, the Joint Venture Company shall manufacture and deliver Conforming
Wafers in quantities other than as contemplated by Sections 4.1(a) and
4.1(b) upon
receiving, and in accordance with, joint written instructions from the
Purchasers setting forth a new allocation of Conforming Wafers between the
Purchasers.  If the Purchasers deliver to the Joint Venture Company
joint written instructions setting forth a maximum number of wafers that the
Joint Venture Company may start or produce in specified time periods, the Joint
Venture Company shall not exceed such starts or production during such time
periods.

       

      4.2           Secondary Silicon and
Scrapped Wafers.

       

      (a)           At
the direction and option of Micron, the Joint Venture Company shall deliver to
Micron all Secondary Silicon produced by the Joint Venture Company (i) from
wafers designated from Wafer Start for Micron in accordance with Section 2.5 and (ii)
in the case of Shared Design ID Wafers, the portion thereof allocated to Micron
in accordance with Section
2.5.  At the direction and option of Micron, the Joint Venture
Company shall deliver to Micron all scrapped wafers produced by the Joint
Venture Company (x) from wafers designated from Wafer Start for Micron in
accordance with Section 2.5 and (y)
in the case of Shared Design ID Wafers, the portion thereof allocated to Micron
in accordance with Section
2.5.

      
        
          
            
               

               

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      (b)           At
the direction and option of NTC, the Joint Venture Company shall deliver to NTC
all Secondary Silicon produced by the Joint Venture Company (a) from wafers
designated from Wafer Start for NTC in accordance with Section 2.5 and (b)
in the case of Shared Design ID Wafers, the portion thereof allocated to NTC in
accordance with Section
2.5.  At the direction and option of NTC, the Joint Venture
Company shall deliver to NTC all scrapped wafers produced by the Joint Venture
Company (x) from wafers designated from Wafer Start for NTC in accordance with
Section 2.5 and
(y) in the case of Shared Design ID Wafers, the portion thereof allocated to NTC
in accordance with Section
2.5.

       

      4.3           Placement of Purchase
Orders.  Prior to the commencement of every Fiscal Quarter or
another time period agreed by the Parties in conjunction with the planning cycle
specified in Article
3, each Purchaser shall place a non-cancelable blanket purchase order in
writing (via e-mail or facsimile transmission) for the quantity, by Design ID,
of Conforming Wafers to be supplied to it by the Joint Venture Company in the
upcoming Fiscal Quarter as indicated in the Manufacturing Plan (each such order,
a “Purchase
Order”).  [***]  The terms and conditions of this
Agreement supersede the terms and conditions contained in any Party’s sales or
purchase documentation provided in connection herewith unless expressly agreed
otherwise in a writing signed by each Party.

       

      4.4           Shortfall; Excess
Output.

       

      (a)           The
Joint Venture Company shall immediately notify the applicable Purchaser in
writing of any inability to meet a Purchase Order commitment to such
Purchaser.  In such an event, such Purchaser shall accept delivery of
such lesser quantities the Joint Venture Company is able to ship and issue to
the Joint Venture Company a revised Purchase Order to account for such
shortfall.

       

      (b)           The
Joint Venture Company shall immediately notify the applicable Purchaser in
writing if the output to be purchased by such Purchaser under this Agreement
will exceed, for any Design ID, the quantity of Conforming Wafers contained in
such Purchaser’s Purchase Order.  In such an event, such Purchaser
shall accept delivery of the additional quantities and issue to the Joint
Venture Company a supplementary Purchase Order to cover such
excess.

       

      4.5           Acceptance of Purchase
Order.  Each Purchase Order that (a) is consistent with the
Boundary Conditions, (b) corresponds to the Manufacturing Plan in the manner
contemplated by Section 4.3, and (c)
is otherwise free of errors, shall be deemed accepted by the Joint Venture
Company upon receipt and shall be binding on the Joint Venture Company and the
applicable Purchaser to the extent not inconsistent with the Boundary Conditions
and the Manufacturing Plan.

       

      4.6           Content of Purchase
Orders.  Each Purchase Order shall specify the following
items:

       

      (a)           the
Purchase Order number;

       

      (b)           the
Design ID of each Conforming Wafer;

      
        
          
            
               

               

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      (c)           by
Design ID, [***];

       

      (d)           by
Design ID, [***];

       

      (e)           by
Design ID, [***];

       

      (f)        
   by Design ID, the requested delivery date;

       

      (g)           by
Design ID, the place of delivery; and

       

      (h)           other
terms (if any).

       

      The Joint
Venture Company will not use or disclose the Purchaser Orders, or the contents
thereof, received by the Joint Venture Company in contravention of any
Applicable Law.

       

      4.7           Taxes.

       

      (a)           General.  All
sales, use and other transfer taxes imposed directly on or solely as a result of
the supplying of Conforming Wafers and Secondary Silicon to a Purchaser and the
payments therefore provided herein shall be stated separately on the Joint
Venture Company’s Proforma Invoices and Final Price Adjustment Memos, collected
from such Purchaser and shall be remitted by the Joint Venture Company to the
appropriate tax authority (“Recoverable Taxes”), unless
such Purchaser provides valid proof of tax exemption prior to the effective date
of the transfer of the Conforming Wafers and Secondary Silicon or otherwise as
permitted by Applicable Law prior to the time the Joint Venture Company is
required to pay such taxes to the appropriate tax authority.  When
property is delivered and/or services are provided, or the benefit of services
occurs, within jurisdictions in which collection of taxes from a Purchaser and
remittance of taxes by the Joint Venture Company is required by Applicable Law,
the Joint Venture Company shall have sole responsibility for payment of said
taxes to the appropriate tax authorities.  In the event such taxes are
Recoverable Taxes and the Joint Venture Company does not collect tax from such
Purchaser, or pay such taxes to the appropriate governmental entity on a timely
basis, and is subsequently audited by any tax authority, liability of such
Purchaser shall be limited to the tax assessment for such Recoverable Taxes with
no reimbursement for penalty or interest charges or other amounts incurred in
connection therewith.  Notwithstanding anything herein to the
contrary, taxes other than Recoverable Taxes shall not be reimbursed by either
Purchaser, and each Party is responsible for its own respective income taxes
(including franchise and other taxes based on net income or a variation
thereof), taxes based upon gross revenues or receipts and taxes with respect to
general overhead, including business and occupation taxes, and such taxes shall
not be Recoverable Taxes.

       

      (b)           Withholding
Taxes.  In the event that a Purchaser is prohibited by
Applicable Law from making payments to the Joint Venture Company unless such
Purchaser deducts or withholds taxes therefrom and remits such taxes to the
local taxing jurisdiction, then such Purchaser shall duly withhold and remit
such taxes and shall pay to the Joint Venture Company the remaining net amount
after the taxes have been withheld.  Such taxes shall not be
Recoverable Taxes and such Purchaser shall not reimburse the Joint Venture
Company for the amount of such taxes withheld.

      
        
          
            
               

               

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      4.8           Invoicing;
Payment.

       

      (a)           Along
with each delivery of Conforming Wafers to a Purchaser, the Joint Venture
Company shall invoice such Purchaser for the Preliminary Price of the Conforming
Wafers contained in such delivery (a “Proforma
Invoice”).

       

      (b)           According
to schedules agreed upon by the Joint Venture Company and each respective
Purchaser, but in no case more than [***] days after the end of each Delivery
Month, the Joint Venture Company shall issue a credit or debit memo (the "Final Price Adjustment Memo")
as appropriate to such Purchaser in an amount equal to the difference between
(i) [***].  Any Secondary Silicon delivered to a Purchaser during such
Delivery Month shall be [***] to such Purchaser.  Any scrapped wafers
delivered to a Purchaser during such Delivery Month shall be [***] to such
Purchaser.

       

      (c)           Except
as otherwise specified in this Agreement, each Purchaser shall pay the Joint
Venture Company for the amounts due and owing by, and duly invoiced in a
Proforma Invoice or a Final Price Adjustment Memo to, such Purchaser within
[***] days following delivery to such Purchaser of both the Proforma Invoice and
Final Price Adjustment Memo therefor.  All amounts owed under this
Agreement are stated, calculated and shall be paid in United States
Dollars.

       

      4.9           Payment to
Subcontractors.  The Joint Venture Company shall be responsible
for, and shall hold the Purchasers harmless from and against, any and all
payments to the vendors or subcontractors the Joint Venture Company utilizes in
the performance of this Agreement.

       

      4.10          Delivery; Title; Risk of
Loss.  In order to ensure timely and complete shipment of
Conforming Wafers and Secondary Silicon to the Purchasers, the Joint Venture
Company shall pay all shipping charges, insurance, taxes, customs charges and
any fees and duties in connection with such shipment.  The Joint
Venture Company shall hold title to, and risk of loss of, Conforming Wafers and
Secondary Silicon under this Agreement until tender to the carrier in Taiwan,
when title and risk of loss and damage to Conforming Wafers and Secondary
Silicon shall transfer to the applicable Purchaser.

       

      4.11          Packaging.  All
shipment packaging of the Conforming Wafers and Secondary Silicon shall be in
conformance with the Specifications, the applicable Purchaser’s reasonable
instructions and general industry standards, and shall be resistant to damage
that may occur during transportation.  Marking on the packages shall
be made by the Joint Venture Company in accordance with the applicable
Purchaser’s reasonable instructions.

       

      4.12          Shipment.  All
Conforming Wafers and Secondary Silicon shall be prepared for shipment in a
manner that:  (a) follows good commercial practice; (b) is
acceptable to common carriers for shipment at the lowest rate; and (c) is
adequate to ensure safe arrival.  The Joint Venture Company shall mark
all containers with (w) necessary lifting, handling and shipping information;
(x) Purchase Order number; (y) date of shipment; and (z) the name of the
applicable Purchaser.  If no instructions are given, the Joint Venture
Company shall select the most price effective carrier, given the time
constraints known to the Joint Venture Company.  At a Purchaser’s
request, the Joint Venture Company shall provide drop-shipment of Conforming

      
        
          
            
               

               

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      Wafers
and Secondary Silicon to such Purchaser’s customers, contractors or
vendors.  Such shipment service may be provided by a subcontractor to
the Joint Venture Company provided that title remains with the Joint Venture
Company and then passes to such Purchaser upon tender to the
carrier.

       

      4.13          Customs
Clearance.  Upon a Purchaser’s request, the Joint Venture
Company shall promptly provide such Purchaser with a statement of origin, and
applicable customs documentation, for Conforming Wafers and Secondary Silicon
wholly or partially manufactured outside of the country of import.

       

      ARTICLE
5

      VISITATIONS;
AUDITS

       

      5.1           Visits.  The
Joint Venture Company shall accommodate each Purchaser’s reasonable requests for
visits to the Joint Venture Company’s fabs and for meetings for the purpose of
reviewing performance of production of Conforming Wafers, including requests for
further information and assistance in troubleshooting performance
issues.

       

      5.2           Audit.  A
Purchaser’s representatives and key customer representatives, upon such
Purchaser’s request, shall be allowed to visit the Joint Venture Company’s fabs
during normal working hours upon reasonable advanced written notice to the Joint
Venture Company for the purposes of monitoring production processes and
compliance with any requirements set forth in this Agreement applicable to the
supply to such Purchaser and the Specifications.  Upon completion of
the audit, the Joint Venture Company and such Purchaser shall agree to an audit
closure plan, to be documented in the audit report issued by such
Purchaser.

       

      5.3           Financial
Audit.

       

      (a)           Micron
reserves the right to have the Joint Venture Company’s books and records related
to Pricing of the Conforming Wafers delivered to Micron during both the then
current Fiscal Year and the prior Fiscal Year inspected and audited not more
than [***] during any Fiscal Year to ensure compliance with Schedule
4.8.  Such audit shall be performed, at Micron’s expense, by an
independent Third Party auditor acceptable to both Micron and the Joint Venture
Company.  Micron shall provide [***] days advance written notice to
the Joint Venture Company of its desire to initiate an audit, and the audit
shall be scheduled so that it does not adversely impact or interrupt the Joint
Venture Company’s business operations.  If the audit reveals any
material discrepancies, Micron or the Joint Venture Company shall reimburse the
other, as applicable, for any material discrepancies within [***] days after
completion of the audit.  The results of such audit shall be kept
confidential by the auditor, and only the discrepancies identified by the audit
shall be reported to Micron and the Joint Venture
Company.  Notwithstanding the foregoing, auditor reports shall not
disclose pricing, or terms of purchase, for any purchases of materials or
equipment by the Joint Venture Company, absent written agreement from the
respective legal counsel of Micron and the Joint Venture Company.  If
any audit reveals a material discrepancy requiring a payment by the Joint
Venture Company, Micron may increase the frequency of such audits to [***] for
the [***] month period.  If any such audit reveals any discrepancy,
the Joint Venture Company shall notify NTC of (i) the existence of such
discrepancy, (ii) whether such discrepancy was found in the computation of the
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      the
aggregate amount of the discrepancy by category (i.e.,
[***]).  Notwithstanding the foregoing, the Joint Venture Company
shall not disclose any Pricing information to NTC to the extent such disclosure
would violate Applicable Law.

       

      (b)           NTC
reserves the right to have the Joint Venture Company’s books and records related
to Pricing of the Conforming Wafers delivered to NTC during both the then
current Fiscal Year and the prior Fiscal Year inspected and audited not more
than [***] during any Fiscal Year to ensure compliance with Schedule
4.8.  Such audit shall be performed, at NTC’s expense, by an
independent Third Party auditor acceptable to both NTC and the Joint Venture
Company.  NTC shall provide [***] days advance written notice to the
Joint Venture Company of its desire to initiate an audit, and the audit shall be
scheduled so that it does not adversely impact or interrupt the Joint Venture
Company’s business operations.  If the audit reveals any material
discrepancies, NTC or the Joint Venture Company shall reimburse the other, as
applicable, for any material discrepancies within [***] days after completion of
the audit.  The results of such audit shall be kept confidential by
the auditor, and only the discrepancies identified by the audit shall be
reported to NTC and the Joint Venture Company.  Notwithstanding the
foregoing, auditor reports shall not disclose pricing, or terms of purchase, for
any purchases of materials or equipment by the Joint Venture Company, absent
written agreement from the respective legal counsel of NTC and the Joint Venture
Company.  If any audit reveals a material discrepancy requiring a
payment by the Joint Venture Company, NTC may increase the frequency of such
audits to [***]for the [***] month period.  If any such audit reveals
any discrepancy, the Joint Venture Company shall notify Micron of (i) the
existence of such discrepancy, (ii) whether such discrepancy was found in the
computation of the [***] for a Delivered JV Product and (iii) the aggregate
amount of the discrepancy by category (i.e.,
[***]).  Notwithstanding the foregoing, the Joint Venture Company
shall not disclose any Pricing information to Micron to the extent such
disclosure would violate Applicable Law.

       

      (c)           The
Joint Venture Company reserves the right to have a Purchaser’s (the “Audited Purchaser’s”) books
and records related to the Audited Purchaser’s Pricing Report for both the then
current Fiscal Year and the prior Fiscal Year inspected and audited not more
than [***]during any Fiscal Year to ensure compliance with Schedule
4.8.  Such audit shall be performed, at the Joint Venture
Company’s expense, by an independent Third Party auditor acceptable to both the
Joint Venture Company and the Audited Purchaser.  The Joint Venture
Company shall provide [***] days advance written notice to the Audited Purchaser
of its desire to initiate an audit, and the audit shall be scheduled so that it
does not adversely impact or interrupt the Audited Purchaser’s business
operations.  If the audit reveals any material discrepancies, the
Audited Purchaser or the Joint Venture Company shall reimburse the other, as
applicable, for any material discrepancies within [***] days after completion of
the audit.  The results of such audit shall be kept confidential by
the auditor, and only the discrepancies identified by the audit shall be
reported to the Audited Purchaser and the Joint Venture
Company.  Notwithstanding the foregoing, auditor reports shall not
disclose (i) pricing, or terms of purchase, for any purchases of materials or
equipment by the Audited Purchaser, (ii) the back-end assembly (including module
and packaging) and testing costs of the Audited Purchaser, or (iii) the terms of
sales of Stack DRAM Products by the Audited Purchaser, absent written agreement
from the respective legal counsel of the Audited Purchaser and the Joint Venture
Company.  If any audit reveals a material discrepancy requiring a
payment by the Audited Purchaser, the Joint Venture Company may increase the
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      subsequent
[***] month period.  If any such audit reveals any discrepancy, the
Joint Venture Company shall notify the Purchaser that is not the Audited
Purchaser of (i) the existence of such discrepancy, (ii) whether such
discrepancy was found in the computation of [***] or in [***] or [***] for a
Delivered JV Product and (iii) the aggregate amount of the discrepancy by
category (i.e.,
[***]).  Notwithstanding the foregoing, the Joint Venture Company
shall not disclose any Pricing information to the Purchaser that is not the
Audited Purchaser to the extent such disclosure would violate Applicable
Law.

       

      ARTICLE
6

      WARRANTY; HAZARDOUS
SUBSTANCES; DISCLAIMER

       

      6.1           Warranties.

       

      (a)           Conforming
Wafers.  The Joint Venture Company makes the following
warranties to the Purchaser of Conforming Wafers hereunder regarding the
Conforming Wafers furnished to such Purchaser hereunder, which warranties shall
survive any delivery, inspection, acceptance, payment or resale of such
Conforming Wafers:

       

      (i)        
   such Conforming Wafers conform to all agreed
Specifications;

       

      (ii)           such
Conforming Wafers are free from defects in materials and workmanship;
and

       

      (iii)           the
Joint Venture Company has the necessary right, title and interest to such
Conforming Wafers, and, upon the sale of such Conforming Wafers to the
applicable Purchaser, such Conforming Wafers shall be free of liens and
encumbrances.

       

      (b)           Secondary
Silicon.  ALL SECONDARY SILICON PROVIDED HEREUNDER IS PROVIDED
ON AN “AS IS,” “WHERE IS” BASIS WITH ALL FAULTS AND DEFECTS WITHOUT WARRANTY OF
ANY KIND.

       

      6.2           Warranty
Claims.  Within a period of time, [***] (“Warranty Claim Period”), such
Purchaser shall notify the Joint Venture Company if it believes that any
Conforming Wafer does not meet the warranty set forth in Section
6.1.  Such Purchaser shall return such Conforming Wafer (or
Stack DRAM Product therefrom) to the Joint Venture Company as directed by the
Joint Venture Company.  If a Conforming Wafer is determined not
to be in compliance with such warranty, then such Purchaser shall be entitled to
return such Conforming Wafer (or Stack DRAM Product therefrom) and cause the
Joint Venture Company to replace the returned item at the Joint Venture
Company’s expense or, at such Purchaser’s option, receive a credit (or, if this
Agreement has or is terminating with respect to such Purchaser so that it will
not be able to use such credit, a refund) of any monies paid to the Joint
Venture Company in respect of such Conforming Wafer, [***].  The basis
for such credit (or refund) shall be [***].

       

      6.3           Inspections.  Each
Purchaser may, upon reasonable advance written notice, request samples of WIP
designated to such Purchaser (or to both Purchaser’s jointly) during production
for purposes of determining compliance with the requirements and
Specification(s) hereunder, provided that the provision
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      Venture
Company’s performance under the Manufacturing Plan or its ability to meet
delivery requirements under any accepted Purchase Order.  Any samples
provided hereunder shall be:  (a) limited in quantity to the amount
reasonably necessary for the purposes hereunder; (b) invoiced and paid for in
accordance with Section 4.8; and (c)
included in any performance requirements, if any.  The Joint Venture
Company shall provide reasonable assistance for the safety and convenience of
the requesting Purchaser in obtaining the samples in such manner as shall not
unreasonably hinder or delay the Joint Venture Company’s
performance.

       

      6.4           Hazardous
Substances.

       

      (a)         
  If Conforming Wafers, Secondary Silicon or Stack DRAM Products
provided hereunder include Hazardous Substances as determined in accordance with
Applicable Law, the Joint Venture Company shall ensure that its employees,
agents and subcontractors actually working with such materials in providing the
Conforming Wafers, Secondary Silicon or Stack DRAM Products hereunder to the
Purchasers are trained in accordance with Applicable Law regarding the nature
of, and hazards associated with, the handling, transportation and use of such
Hazardous Substances.

       

      (b)           To
the extent required by Applicable Law, the Joint Venture Company shall provide
each Purchaser with Material Safety Data Sheets (MSDS) either prior to or
accompanying any delivery of Conforming Wafers, Secondary Silicon or Stack DRAM
Products to such Purchaser.

       

      (c)           The
Joint Venture Company shall indemnify, defend and hold harmless each Purchaser
from and against any and all Indemnified Losses suffered or incurred by such
Purchaser based on, relating to, or arising under any Environmental Laws and
related to the manufacture of Conforming Wafers, Secondary Silicon or Stack DRAM
Products by the Joint Venture Company.

       

      6.5           Disclaimer.  [***].

       

      ARTICLE
7

      CONFIDENTIALITY;
OWNERSHIP

       

      7.1           Protection and Use of
Confidential Information.  All information provided, disclosed
or obtained in the performance of any of the Parties’ activities under this
Agreement shall be subject to all applicable provisions of the Mutual
Confidentiality Agreement.  Furthermore, the terms and conditions of
this Agreement shall be considered “Confidential Information” under the Mutual
Confidentiality Agreement for which each Party is considered a “Receiving Party” under such
agreement.  To the extent there is a conflict between this Agreement
and the Mutual Confidentiality Agreement, the terms of this Agreement shall
control.

       

      7.2           Masks.  Any
masks used by the Joint Venture Company in connection with its performance under
this Agreement shall be based on Stack DRAM Designs owned by a Purchaser and shall be treated as
“Confidential Information” of such Purchaser under the Mutual Confidentiality
Agreement.

      
        
          
            
               

               

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      7.3           Intellectual Property
Ownership.  Ownership of any intellectual property developed by
the Joint Venture Company shall be governed by the Technology Transfer
Agreement.

       

      ARTICLE
8

      INDEMNIFICATION

       

      8.1           General
Indemnity.  Subject to Article 9, the Joint
Venture Company shall indemnify, defend and hold harmless the Indemnified
Parties from and against any and all Indemnified Losses based on, or
attributable to, [***].

       

      8.2           Indemnification
Procedures.

       

      (a)           Promptly
after the receipt by any Indemnified Party of a notice of any Third Party Claim
that may be subject to indemnification under Section 8.1, such
Indemnified Party shall give written notice of such Third Party Claim to the
Joint Venture Company, stating in reasonable detail the nature and basis of each
allegation made in the Third Party Claim and the amount of potential Indemnified
Losses with respect to each allegation, to the extent known, along with copies
of the relevant documents received by the Indemnified Party evidencing the Third
Party Claim and the basis for indemnification sought.  Failure of the
Indemnified Party to give such notice shall not relieve the Joint Venture
Company from liability on account of this indemnification, except if, and only
to the extent that, the Joint Venture Company is actually prejudiced by such
failure or delay.  Thereafter, the Indemnified Party shall deliver to
the Joint Venture Company, promptly after the Indemnified Party’s receipt
thereof, copies of all notices and documents (including court papers) received
by the Indemnified Party relating to the Third Party Claim.  The Joint
Venture Company shall have the right to assume the defense of the Indemnified
Party with respect to such Third Party Claim upon written notice to the
Indemnified Party delivered within [***] days after receipt of the particular
notice from the Indemnified Party.  So long as the Joint Venture
Company has assumed the defense of the Third Party Claim in accordance herewith
and notified the Indemnified Party in writing thereof, (i) the Indemnified Party
may retain separate co-counsel, at its sole cost and expense, and participate in
the defense of the Third Party Claim, it being understood that the Joint Venture
Company shall pay all reasonable costs and expenses of counsel for the
Indemnified Party after such time as the Indemnified Party has notified the
Joint Venture Company of such Third Party Claim and prior to such time as the
Joint Venture Company has notified the Indemnified Party that it has assumed the
defense of such Third Party Claim, (ii) the Indemnified Party shall not consent
to the entry of any judgment or enter into any settlement with respect to a
Third Party Claim without the prior written consent of the Joint Venture Company
(not to be unreasonably withheld, conditioned or delayed) and (iii) the Joint
Venture Company shall not consent to the entry of any judgment or enter into any
settlement with respect to the Third Party Claim (other than a judgment or
settlement that is solely for money damages and is accompanied by a release of
all indemnifiable claims against the Indemnified Party) without the prior
written consent of the Indemnified Party (not to be unreasonably withheld,
conditioned or delayed).

       

      (b)           Equitable
Remedies.  In the case of any Third Party Claim where the Joint
Venture Company reasonably believes that it would be appropriate to settle such
Third Party Claim using equitable remedies (i.e., remedies involving
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      Company
and the Indemnified Party shall work together in good faith to agree to a
settlement; provided,
however, that no Party
shall be under any obligation to agree to any such settlement.

       

      (c)           Treatment of Indemnification
Payments; Insurance Recoveries.  Any indemnity payment under
this Agreement shall be decreased by any amounts actually recovered by the
Indemnified Party under Third Party insurance policies with respect to such
Indemnified Losses (net of any premiums paid by such Indemnified Party under the
relevant insurance policy).  Each Party agrees (i) to use all
reasonable efforts to recover all available insurance proceeds and (ii) to the
extent that any indemnity payment under this Agreement has been paid by the
Joint Venture Company to the Indemnified Party prior to the recovery by the
Indemnified Party of such insurance proceeds, the amount of such insurance
proceeds actually recovered by the Indemnified Party shall be promptly paid to
the Joint Venture Company.

       

      (d)           Certain Additional
Procedures.  The Indemnified Party shall cooperate and assist
the Joint Venture Company in determining the validity of any Third Party Claim
and in otherwise resolving such matters.  The Indemnified Party shall
cooperate in the defense by the Joint Venture Company of each Third Party Claim
(and the Indemnified Party and the Joint Venture Company agree with respect to
all such Third Party Claims that a common interest privilege agreement exists
between them), including:  (i) permitting the Joint Venture Company to
discuss the Third Party Claim with such officers, employees, consultants and
representatives of the Indemnified Party as the Joint Venture Company reasonably
requests; (ii) providing to the Joint Venture Company copies of documents and
samples of products as the Joint Venture Company reasonably requests in
connection with defending such Third Party Claim; (iii) preserving all
properties, books, records, papers, documents, plans, drawings, electronic mail
and databases of the Joint Venture Company and relating to matters pertinent to
the conduct of the Joint Venture Company under the Indemnified Party’s custody
or control in accordance with such Party’s corporate documents retention
policies, or longer to the extent reasonably requested by the Joint Venture
Company; (iv) notifying the Joint Venture Company promptly of receipt by the
Indemnified Party of any subpoena or other Third Party request for documents or
interviews and testimony; (v) providing to the Joint Venture Company copies of
any documents produced by the Indemnified Party in response to or compliance
with any subpoena or other Third Party request for documents; and (vi) except to
the extent inconsistent with the Indemnified Party’s obligations under
Applicable Law and except to the extent that to do so would subject the
Indemnified Party or its employees, agents or representatives to criminal or
civil sanctions, unless ordered by a court to do otherwise, not producing
documents to a Third Party until the Joint Venture Company has been provided a
reasonable opportunity to review, copy and assert privileges covering such
documents.

       

      ARTICLE
9

      LIMITATION OF
LIABILITY

       

      9.1           Damages
Limitation.  [***].

       

      9.2           Claims Under this
Agreement.  THE PARTIES AGREE THAT TO THE EXTENT A CLAIM ARISES
UNDER THIS AGREEMENT, THE CLAIM SHALL BE BROUGHT UNDER THIS
AGREEMENT.

      
        
          
            
               

               

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      9.3           Damages
Caps.  [***].

       

      9.4           Exclusions;
Mitigation.  Section 9.1 and Section 9.3 shall not
apply to Section
6.4(c) or to any Party’s breach of Article
7.  Each Party shall have a duty to use commercially reasonable
efforts to mitigate damages for which another Party is responsible.

       

      ARTICLE
10

      TERM AND
TERMINATION;

      SUPPLY OBLIGATIONS FOLLOWING
TRIGGERING EVENT

       

      10.1          Term.

       

      (a)        
   Micron
Term.  With respect to Micron, the term of this Agreement (the
“Micron Term”) commences
on the Closing Date and continues in effect until the first to occur
of:

       

      (i)        
    the date on which Micron and its Subsidiaries sell all of
their ordinary shares of the Joint Venture Company pursuant to Section 3.5 of the
Joint Venture Agreement; and

       

      (ii)       
    the date of [***].

       

      (b)           NTC
Term.  With respect to NTC, the term of this Agreement (the
“NTC Term”) commences on
the Closing Date and continues in effect until the first to occur
of:

       

      (i)       
     the date on which NTC and its Subsidiaries sell
[***] of the Joint Venture Company pursuant to Section 3.5 of the
Joint Venture Agreement; and

       

      (ii)      
     the date of [***].

       

      10.2          Termination.  This
Agreement [***] (a) by Micron [***]. (b) by NTC[***], or (c) by the Joint
Venture Company [***].

       

      10.3          Joint Venture Company
Requirements at Termination.

       

      (a)         
  Within [***] days after the end of the Micron Term, the Joint
Venture Company:

       

      (i)           
 shall destroy all production masks obtained for or on behalf of Micron
pursuant to Section
2.4; and

       

      (ii)          
 shall (A) destroy all copies and other embodiments of any process
technology or information provided to the Joint Venture Company by Micron, or
any portion thereof, in whatever form received, reproduced or stored, (B)
certify to Micron that such destruction is complete, and (C) cease all use of
the process technology or information provided to the Joint Venture Company by
Micron.

      
        
          
            
               

               

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      (b)      
     Within [***] days after the end of the NTC Term,
the Joint Venture Company:

       

      (i)          
  shall destroy all production masks obtained for or on behalf of NTC
pursuant to Section
2.4; and

       

      (ii)      
     shall (A) destroy all copies and other embodiments
of any process technology or information provided to the Joint Venture Company
by NTC, or any portion thereof, in whatever form received, reproduced or stored,
(B) certify to NTC that such destruction is complete, and (C) cease all use of
the process technology or information provided to the Joint Venture Company by
NTC.

       

      10.4          Survival.

       

      (a)        
   Survival of Provisions
Applicable to All Parties.  Termination of this Agreement with
respect to either Purchaser shall not affect any of the Parties’ respective
rights accrued, or obligations owed, before such termination, including any
rights or obligations of the Parties in respect of any accepted Purchase Orders
existing at the time of such termination.  In addition, the following
shall survive termination of this Agreement with respect to either Purchaser for
any reason: Sections
2.8, 6.1, 6.2, 6.4(c) and 6.5, and Articles 4, 7, 8, 9, 10 and 11.

       

      (b)      
     Survival of the Agreement
for Non-Terminating Parties.  Upon the termination of this
Agreement with respect to Micron as a result of the expiration of the Micron
Term, this Agreement shall remain in full force and effect as between NTC and
the Joint Venture Company.  Upon the termination of this Agreement
with respect to NTC as a result of the expiration of the NTC Term, this
Agreement shall remain in full force and effect as between Micron and the Joint
Venture Company.

       

      ARTICLE
11

      MISCELLANEOUS

       

      11.1          Force Majeure
Events.  The Parties shall be excused from any failure to
perform any obligation hereunder to the extent such failure is caused by a Force
Majeure Event. A Force Majeure Event shall operate to excuse a failure to
perform an obligation hereunder only for the period of time during which the
Force Majeure Event renders performance impossible or infeasible and only if the
Party asserting Force Majeure as an excuse for its failure to perform has
provided written notice to, in the event of an assertion by Micron or NTC, the
Joint Venture Company and, in the event of an assertion by the Joint Venture
Company, Micron and NTC specifying the obligation to be excused and describing
the events or conditions constituting the Force Majeure Event.

       

      11.2          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 under the indemnification provisions or
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 and granted in connection
therewith.

      
        
          
            
               

               

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      11.3          Assignment.  [***]

       

      11.4          Compliance with Laws and
Regulations.  Each of the Parties shall comply with, and shall
use reasonable efforts to require that its respective subcontractors comply
with, Applicable Laws relating to this Agreement and the performance of such
Party’s obligations hereunder.

       

      11.5          Notice. All notices
and other communications hereunder shall be in writing and shall be deemed given
upon (a) transmitter’s confirmation of a receipt of a facsimile transmission,
(b) confirmed delivery by a standard overnight or recognized international
carrier or when delivered by hand, or (c) delivery in person, addressed at the
following addresses (or at such other address for a Party as shall be specified
by like notice):

       

      In the
case of the Joint Venture Company.

       

      
        	
                MeiYa
      Technology Company

                5F,
      No. 201-36

                Dunhua
      N. Road, Songshan District

                Taipei
      City, Taiwan, ROC

              
	 
      
	
                In
      the case of Micron Technology, Inc.:

              
	 
      
	
                Micron
      Technology, Inc.

                8000
      S. Federal Way

                Mail
      Stop 1-507

                Boise,
      ID 83716

                Attn:
      General Counsel

                Facsimile:
      (208) 368-4537

              
	 
      
	
                In
      the case of NTC:

              
	 
      
	
                Nanya
      Technology Corporation

                Hwa-Ya
      Technology Park 669

                Fuhsing
      3 RD. Kueishan

                Taoyuan,
      Taiwan, ROC

                Attn:  Legal  department

                Facsimile:
      886-3-396-2226

              

      

      

       

      11.6          Waiver.  The
failure at any time of a Party to require performance by another Party of any
responsibility or obligation required by this Agreement shall in no way affect a
Party’s right to require such performance at any time thereafter, nor shall the
waiver by a Party of a breach of any provision of this Agreement by another
Party constitute a waiver of any other breach of the same or any other provision
nor constitute a waiver of the responsibility or obligation itself.

      
        
          
            
               

               

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      11.7          Severability.  Should
any provision of this Agreement be deemed in contradiction with the laws of any
jurisdiction in which it is to be performed or unenforceable for any reason,
such provision shall be deemed null and void, but this Agreement shall remain in
full force and effect in all other respects.  Should any provision of
this Agreement be or become ineffective because of changes in Applicable Laws or
interpretations thereof, or should this Agreement fail to include a provision
that is required as a matter of law, the validity of the other provisions of
this Agreement shall not be affected thereby.  If such circumstances
arise, the Parties shall negotiate in good faith appropriate modifications to
this Agreement to reflect those changes that are required by Applicable
Law.

       

      11.8          Third Party
Rights.  Nothing in this Agreement, whether express or implied,
is intended, or shall be construed, to confer, directly or indirectly, upon or
give to any Person, other than the Parties hereto, any legal or equitable right,
remedy or claim under or in respect of this Agreement or any covenant, condition
or other provision contained herein.

       

      11.9          Amendment.  This
Agreement may not be modified or amended except by a written instrument executed
by, or on behalf of, each of the Parties.

       

      11.10        Entire
Agreement.  This Agreement, together with the Schedules hereto
and the agreements and instruments expressly provided for herein (including the
Mutual Confidentiality Agreement), constitute the entire agreement of the
Parties with respect to the subject matter hereof and supersede all prior
agreements and understandings, oral and written, between the Parties with
respect to the subject matter hereof.

       

      11.11        Choice of
Law.  This Agreement shall be governed by and construed in
accordance with the laws of the ROC, without giving effect to its conflict of
laws principles.

       

      11.12        Jurisdiction;
Venue.  Any suit, action or proceeding seeking to enforce any
provision of, or based on any matter arising out of or in connection with, this
Agreement shall be brought in the Taipei District Court, located in Taipei,
Taiwan, and each of the Parties hereby consents and submits to the exclusive
jurisdiction of such court (and of the appropriate appellate courts therefrom)
in any such suit, action or proceeding and irrevocably waives, to the fullest
extent permitted by Applicable Law, any objection which it may now or hereafter
have to the laying of the venue of any such suit, action or proceeding in any
such court or that any such suit, action or proceeding which is brought in any
such court has been brought in an inconvenient forum.

       

      11.13                      Headings.  The
headings of the Articles and Sections in this Agreement are provided for
convenience of reference only and shall not be deemed to constitute a part
hereof.

       

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

       

      11.15                      Insurance.  Without
limiting or qualifying the Joint Venture Company’s liabilities, obligations or
indemnities otherwise assumed by the Joint Venture Company pursuant to this
Agreement, the Joint Venture Company shall at all times, for so long as this
Agreement remains in effect (and notwithstanding any termination of the Joint
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      effect
insurance of the types and in the amounts set forth on Appendix I of the
Joint Venture Agreement.  Such insurance coverage may be provided
through the coverage under one or more insurance policies maintained by Micron
or NTC.

       

       [Signature page
follows]

      
        
          
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      IN
WITNESS WHEREOF, this Agreement has been duly executed by, and on behalf of, the
Parties as of the Closing Date.

       

      
        	 
      	
                JOINT
      VENTURE COMPANY    

                 

                 

              
	 
      	By:	
                /s/ Pei Ing
      Lee                                                           

              
	 	
                 

                Name:  Pei
      Ing Lee  

              
	 	
                 

                Title:  Chairman

              
	 
      	 	 
      
	 
      	 	 
      
	 
      	
                MICRON
      TECHNOLOGY, INC.    

                 

                 

              
	 
      	By:	
                 /s/ D. Mark
      Duncan                                                           

              
	 	
                 

                Name:  D.
      Mark Durcan  

              
	 
      	
                 

                Title:  President
      and Chief Operating Officer

              
	 
      	 	 
      
	 
      	 	 
      
	 	
                NANYA
      TECHNOLOGY CORPORATION    

                 

                 

              
	 
      	By: 	
                /s/ Jih
      Lien                                                           

              
	 	
                 

                Name:  Jih
      Lien  

              
	 
      	
                 

                Title:  President

              

      

      

       

      THIS
IS THE SIGNATURE PAGE FOR THE SUPPLY AGREEMENT ENTERED

      INTO
BY AND BETWEEN MICRON, NTC AND

      JOINT
VENTURE COMPANY

       

      
        
          
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      SCHEDULE
4.8

       

      PRICE

       

      The
Parties agree that the “Price” of any Conforming Wafer
shall be calculated, by [***], in the following manner:

       

      Price =
[***].

       

      where,
the components of such calculation, and the related terms, have the meanings set
forth below.  An example of the Price calculation is set forth on
Attachment 1 to this Schedule 4.8.

       

      [***]

       

      
        
          
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      ATTACHMENT
1

       

      EXAMPLE
OF PRICE CALCULATION

       

      [***]

       

      

       

      
        DLI-6195504v3q308exhibit10-54.htm

    
      EXHIBIT 10.54

      

      [***]
DENOTES CONFIDENTIAL MATERIALS OMITTED AND FILED SEPARATELY WITH THE SECURITIES
AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT

      

      Micron
NTC CONFIDENTIAL

      JOINT
DEVELOPMENT PROGRAM AGREEMENT

      

      This
JOINT DEVELOPMENT PROGRAM
AGREEMENT (this “Agreement”), is made and
entered into as of this 21st day of April, 2008 (“Effective Date”), by and
between Nanya Technology Corporation (Nanya Technology Corporation
[Translation from Chinese]), a company incorporated under the laws of the
Republic of China (“NTC”), and Micron Technology,
Inc., a Delaware corporation (“Micron”).  (NTC and
Micron are referred to in this Agreement individually as a “Party” and collectively as the
“Parties”).

       

      RECITALS

       

      A.           Pursuant
to the Joint Venture Documents (as defined hereinafter) and the transactions
contemplated thereby, MNL, an Affiliate of Micron and NTC are forming the Joint
Venture Company (as defined hereinafter) for the collaborative manufacture and
sale of Stack DRAM Products exclusively to the Parties.

       

      B.           NTC
and Micron desire to engage in joint development of Stack DRAM Designs and
Process Technology (each, as defined hereinafter) on process node of [***], or
on such other design or process technology, the Parties may agree pursuant to
this Agreement. The Parties desire to outline the procedures under which they
will pool their respective resources as provided in this Agreement for the
purpose of performing research and development work relating to Stack DRAM
Designs and Process Technology that will be used by the Joint Venture Company,
by NTC and by Micron, to manufacture Stack DRAM Products.

       

      AGREEMENT

       

      NOW,
THEREFORE, in consideration of the mutual promises and agreements herein set
forth, the Parties, intending to be legally bound, hereby agree as
follows.

       

      ARTICLE
1

      DEFINITIONS; CERTAIN
INTERPRETATIVE MATTERS

       

      1.1           Definitions.  In
addition to the terms defined elsewhere in this Agreement, capitalized terms
used in this Agreement shall have the respective meanings set forth
below:

       

       “Affiliate” means, with respect
to any specified Person, any other Person that directly or indirectly, including
through one or more intermediaries, controls, or is controlled by, or is under
common control with such specified Person; and the term “affiliated” has a
meaning correlative to the foregoing.

       

      “Agreement” shall have the
meaning set forth in the preamble to this Agreement.

      
        
          
            
               

               

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      “Applicable Law” means any
applicable laws, statutes, rules, regulations, ordinances, orders, codes,
arbitration awards, judgments, decrees or other legal requirements of any
Governmental Entity.

       

      “ATE” means automatic test
equipment, such as that sold under the trademark ADVENTEST.

       

      “Burn-In” means
[***].

       

      “Burn-In Document” means a
document that describes the specification of voltage and test pattern settings
in the Burn-In test program.  The Burn-In Document also describes the
methodology of how the voltage and test pattern settings are
optimized.

       

      “Business Day” means a day that
is not a Saturday, Sunday or other day on which commercial banking institutions
in either the Republic of China or the State of New York are authorized or
required by Applicable Law to be closed.

       

      “Change of Control” means,
with respect to any first Person, the occurrence of any of the following events,
whether through a single transaction or series of related
transactions:  (a) any consolidation or merger of such first Person
with or into another Person in which the holders of such first Person’s
outstanding voting equity immediately before such consolidation or merger do
not, immediately after such consolidation or merger, own or control directly or
indirectly equity representing a majority of the outstanding voting equity of
the surviving Person; (b) the sale of all or substantially all of such first
Person’s assets to another Person wherein the holders of such first Person’s
outstanding voting equity immediately before such sale do not, immediately after
sale, own or control directly or indirectly equity representing a majority of
the outstanding voting equity of the purchaser; or (c) the sale of such first
Person’s voting equity to any other Person(s) wherein the holders of such first
Person’s outstanding voting equity immediately before such sale do not,
immediately after such sale, own or control directly or indirectly equity
representing a majority of the outstanding voting equity of such first
Person.

       

      “Closing” means the remittance
by NTC and MNL of the first capital contribution to the Joint Venture Company as
set forth in Section
2.6 of the Master Agreement.

       

      “Commodity Stack DRAM Products”
means Stack DRAM Products for system main memory for computing or Mobile
Devices, in each case that are fully compliant with one or more Industry
Standard(s).

       

      “Confidential Information”
means that information described in Section 6.1 deemed to
be “Confidential Information” under the Mutual Confidentiality
Agreement.

       

      “Contractor” means a Third
Party who (a) is contracted by a Party in connection with work to be conducted
by such Party under a SOW, (b) has agreed to assign to such contracting Party
all rights in and to any inventions, discoveries, improvements, processes,
copyrightable works, mask works, trade secrets or other technology that are
conceived or first reduced to practice, whether patentable or not, as a result
of any performance by such Third Party of any obligations of such Party under a
SOW, and all Patent Rights, IP Rights and other intellectual 

      
        
          
            
               

               

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      property
rights in the foregoing, and (c) has agreed to grant a license to such
contracting Party, with the right to sublicense of sufficient scope that
includes the other Party, under all Patent Rights, IP Rights and other rights of
the Third Party reasonably necessary for such contracting Party and the other
Party to exploit the work product created by the Third Party consistent with the
rights granted by the contracting Party to the other Party under the Joint
Venture Documents.

       

      “Control” (whether capitalized
or not) means the power or authority, whether exercised or not, to direct the
business, management and policies of a Person, directly or indirectly, whether
through the ownership of voting securities, by contract or otherwise, which
power or authority shall conclusively be presumed to exist upon possession of
beneficial ownership or power to direct the vote of [***] of the votes entitled
to be cast at a meeting of the members, shareholders or other equity holders of
such Person or power to control the composition of a majority of the board of
directors or like governing body of such Person; and the terms “controlling” and “controlled” have meanings
correlative to the foregoing.

       

      “Coverage Test” means test
solution for module application fail in CP/FT/Module ATE.

       

      “Deadlock Terminating Party”
shall have the meaning set forth in Section III.D.5 of
Schedule
2.

       

      “Design Qualification” means,
[***].

       

      “Design SOW” means
[***].

       

      “Design SOW Costs” means any
and all SOW Costs attributable to a Design SOW in accordance with Schedule
4.

       

      “Draft” means the mechanism
described in Section
5.3 by which either Micron or NTC may select from Pooled Inventions to
solely own.

       

      “Drafting Party” means either
Micron or NTC, as the Party selecting a Pooled Invention pursuant to the
Draft.

       

      “DRAM Module” means one or
more DRAM Products in a JEDEC-compliant package or module (whether as part of a
SIMM, DIMM, multi-chip package, memory card or other memory module or
package).

       

      “DRAM Product” means any
stand-alone semiconductor device that is a dynamic random access memory device
and that is designed or developed primarily for the function of storing data, in
die, wafer or package form.

       

      “Effective Date” shall have the
meaning set forth in the preamble to this Agreement.

       

      “Existing Entity” means
[***].

       

      “Force Majeure Event” means the
occurrence of an event or circumstance beyond the reasonable control of a Party
and includes, without limitation, (a) explosions, fires, flood, earthquakes,
catastrophic weather conditions, or other elements of nature or acts of God; (b)
acts 

      
        
          
            
               

               

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      of war
(declared or undeclared), acts of terrorism, insurrection, riots, civil
disorders, rebellion or sabotage; (c) acts of federal, state, local or foreign
Governmental Entity; (d) labor disputes, lockouts, strikes or other industrial
action, whether direct or indirect and whether lawful or unlawful; (e) failures
or fluctuations in electrical power or telecommunications service or equipment;
and (f) delays caused by the other Party or third-party nonperformance (except
for delays caused by a Party’s Contractors, subcontractors or
agents).

       

      “Foundational Know-How” means,
with respect to each Party, [***].

       

      “Foundry Customer” means a
Third Party customer of either NTC or Micron for Stack DRAM Products
[***].

       

      “FT” means [***].

       

      “GAAP” means, with respect to
Micron, United States generally accepted accounting principles, and with respect
to NTC, Republic of China generally accepted accounting principles, in each
case, as consistently applied by the Party for all periods at
issue.

       

      “Governmental Entity” means any
governmental authority or entity, including any agency, board, bureau,
commission, court, municipality, department, subdivision or instrumentality
thereof, or any arbitrator or arbitration panel.

       

      “Imaging Product” means any
(a) semiconductor device having a plurality of photo elements (e.g.,
photodiodes, photogates, etc.) for converting impinging light into an electrical
representation of the information in the light, (b) image processor or other
semiconductor device for balancing, correcting, manipulating or otherwise
processing such electrical representation of the information in the impinging
light, or (c) combination of the devices described in clauses (a) and
(b).

       

      “Indemnified Claim” shall have
the meaning set forth in Section
8.2.

       

      “Indemnified Party” shall have
the meaning set forth in Section
8.2.

       

      “Indemnifying Party” shall have
the meaning set forth in Section
8.2.

       

      “Industry Standard” means the
documented technical specifications that set forth the pertinent technical and
operating characteristics of a DRAM Product if such specifications are publicly
available for use by DRAM manufacturers, and if [***].

       

      “IP Rights” means copyrights,
rights in trade secrets, Mask Work Rights and pending applications or
registrations of any of the foregoing anywhere in the world.  The term
“IP Rights” does not include any Patent Rights or rights in
trademarks.

       

      “JDP Co-Chairman” and “JDP Co-Chairmen” shall have
the meaning set forth on Schedule
2.

      
        
          
            
               

               

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      “JDP Committee” shall mean the
committee formed and operated by Micron and NTC to govern the performance of the
Parties under this Agreement in accordance with the JDP Committee
Charter.

       

      “JDP Committee Charter” means
the charter attached as Schedule
2.

       

      “JDP Design” means any Stack
DRAM Design resulting from the research and development activities of the
Parties pursuant to this Agreement.

       

      “JDP Inventions” shall mean
all discoveries, improvements, inventions, developments, processes or other
technology, whether patentable or not, that is/are conceived by one or more
Representatives of one or more of the Parties in the course of activities
conducted under this Agreement.

       

      “JDP Process Node” means any
Primary Process Node or Optimized Process Node resulting from the research and
development activities of the Parties pursuant this Agreement.

       

      “JDP Work Product” means
[***].

       

      “Joint Venture Company” means
the company formed and operated in accordance with the Joint Venture
Documents.

       

      “Joint Venture Company Joinder”
means that certain Joinder of the Joint Venture Company to the Mutual
Confidentiality Agreement.

       

      “Joint Venture Documents” means
the Master Agreement and each of the agreements listed on Schedules 2.1 through
2.5 of the
Master Agreement Disclosure Letter.

       

      “Lead Product” means
[***].

       

      “Mask Data Processing” means
[***].

       

      “Mask Work Rights" means rights
under the United States Semiconductor Chip Protection Act of 1984, as amended
from time to time, or under any similar equivalent laws in countries other than
the United States.

       

      “Master Agreement” means that
certain Master Agreement by and between NTC and Micron dated as of the Effective
Date.

       

      “Master Agreement Disclosure
Letter” means that certain Master Agreement Disclosure Letter by and
between NTC and Micron dated as of the Effective Date containing the Schedules
required by the Master Agreement.

       

      “Micron” shall have the
meaning set forth in the preamble to this Agreement.

       

      “Micron Indemnitees” shall have
the meaning set forth in Section
8.1.

      
        
          
            
               

               

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      “MNL” means Micron
Semiconductor B.V., a private limited liability company organized under the laws
of the Netherlands.

       

      “Mobile Device” means a
handheld or portable device using as its main memory one or more Stack DRAM
Products that is/are compliant with an Industry Standard [***].

       

      “Mutual Confidentiality
Agreement” means (i) prior to the Closing, that certain Mutual
Confidentiality Agreement among NTC, Micron and MNL referred to on Schedule 2.1 of the
Master Agreement Disclosure Letter, and (ii) following the Closing, that certain
Mutual Confidentiality Agreement among NTC, Micron and MNL referred to on Schedule 2.1 of the
Master Agreement Disclosure Letter, as joined by the Joint Venture Company
through the Joint Venture Company Joinder.

       

      “NAND Flash Memory Product”
means a non-volatile semiconductor memory device containing memory cells that
are electrically programmable and electrically erasable whereby the memory cells
consist of one or more transistors that have a floating gate, charge trapping
regions or any other functionally equivalent structure utilizing one or more
different charge levels (including binary or multi-level cell structures), with
or without any on-chip control, I/O and other support circuitry, in wafer, die
or packaged form.

       

      “NTC” shall have the meaning
set forth in the preamble to this Agreement.

       

      “NTC Indemnitees” shall have
the meaning set forth in Section
8.1.

       

      “OPC” means optical proximity
correction of the circuit layout patterns, which is important in Mask Data
Processing.

       

      “Optimized Process Node” means
[***].

       

      “Party” and “Parties” shall have the
meaning set forth in the preamble to this Agreement.

       

      “Patent Prosecution” means (a)
preparing, filing and prosecuting patent applications (of all types), and (b)
managing any interference, reexamination, reissue, or opposition proceedings
relating to the foregoing.

       

      “Patent Review Committee” means
the committee formed by the JDP Committee to [***].

       

      “Patent Rights” means all
rights associated with any and all issued and unexpired patents and pending
patent applications in any country in the world, together with any and all
divisionals, continuations, continuations-in-part, reissues, reexaminations,
extensions, foreign counterparts or equivalents of any of the foregoing,
wherever and whenever existing.

       

      “Person” means any natural
person, corporation, joint stock company, limited liability company,
association, partnership, firm, joint venture, organization, business, trust,
estate or any other entity or organization of any kind or
character.

       

      [***]

      
        
          
            
               

               

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      [***]

       

      “Post Termination Funding
Period” shall have the meaning set forth in Section III.D.5 of
Schedule
2.

       

      “Primary Process Node” means
[***].

       

      “Probe Testing” means testing,
using a wafer test program as set forth in the applicable specifications, of a
wafer that has completed all processing steps deemed necessary to complete the
creation of the desired Stack DRAM integrated circuits in the die on such wafer,
the purpose of which test is to determine how many and which of the die meet the
applicable criteria for such die set forth in the specifications.

       

      “Process Node” means
[***].

       

      “Process Qualification” means,
with respect to each Primary Process Node and Optimized Process Node, when (a)
the Stack DRAM Products or Stack DRAM Modules designed to be on the node can be
made fully compliant with any applicable Industry Standard(s) (if any) and [***]
or (b) or such other or additional parameters as may be defined in the Process
SOW as “Process Qualification” for the Primary Process Node or the Optimized
Process Node that is the subject of the SOW, [***].

       

      “Process SOW” means any SOW
primarily directed to the development of Process Technology, including the
development of a Primary Process Node or an Optimized Process Node to be used by
the Joint Venture Company, Micron or NTC in the manufacture of Stack DRAM
Products.

       

      “Process SOW Costs” means
[***].

       

      “Process Technology” means
that process technology developed before expiration of the Term and utilized in
the manufacture of Stack DRAM wafers, including Probe Testing and technology
developed through Product Engineering thereof, regardless of the form in
which any of the foregoing is stored, but excluding any Patent Rights and any
technology, trade secrets or know-how that relate to and are used in any
back-end operations (after Probe Testing).

       

      “Product Engineering” means any
one or more of the engineering activities described on Schedule 7 as applied
to Stack DRAM Products or Stack DRAM Modules.

       

      “Proposing Party” shall have
the meaning set forth in Section
3.2.

       

      “Recoverable Taxes” shall have
the meaning set forth in Section
4.4.

       

      “Rejecting Party” shall have
the meaning set forth in Section
3.2.

       

      “Rejected Development Work”
shall have the meaning set forth in Section
3.2.

       

      “Representative” means with
respect to a Party, any director, officer, employee, agent or Contractor of such
Party or a professional advisor to such Party, such as an attorney, banker or

      
        
          
            
               

               

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      financial
advisor of such Party who is under an obligation of confidentiality to such
Party by contract or ethical rules applicable to such Person.

       

      “R&D Roadmap” has the
meaning provided in Section
2.3.

       

      “Software” means computer
program instruction code, whether in human-readable source code form,
machine-executable binary form, firmware, scripts, interpretive text, or
otherwise.  The term “Software” does not include databases and other
information stored in electronic form, other than executable instruction codes
or source code that is intended to be compiled into executable instruction
codes.

       

      “SOW” means a statement of the
work that describes research and development work to be performed under this
Agreement and that has been adopted by the JDP Committee pursuant to Section 3.2.

       

      “SOW Costs” means any or all
costs that are incurred by a Party in connection with any SOW as provided on
Schedule
4.

       

      “Stack DRAM” means dynamic
random access memory cell that functions by using a  capacitor arrayed
predominantly above the semiconductor substrate.

       

      “Stack DRAM Design” means, with respect to
a Stack DRAM Product, the corresponding design components, materials and
information listed on Schedule 3 or as
otherwise determined by the JDP Committee in a SOW.

       

      “Stack DRAM Module” means one
or more Stack DRAM Products in a JEDEC-compliant package or module (whether as
part of a SIMM, DIMM, multi-chip package, memory card or other memory module or
package).

       

      “Stack DRAM Product” means any
memory comprising Stack DRAM, whether in die or wafer form.

       

      “Subsidiary” means, with
respect to any specified Person, any other Person that, directly or indirectly,
including through one or more intermediaries, is controlled by such specified
Person.

       

      “Tax” or “Taxes” means any federal,
state, local or foreign net income, gross income, gross receipts, sales, use ad
valorem, transfer, franchise, profits, service, service use, withholding,
payroll, employment, excise, severance, stamp, occupation, premium, property,
customs, duties or other type of fiscal levy and all other taxes, governmental
fees, registration fees, assessments or charges of any kind whatsoever, together
with any interest and penalties, additions to tax or additional amounts imposed
or assessed with respect thereto.

       

      “Taxing Authority” means any
Governmental Entity exercising any authority to impose, regulate or administer
the imposition of Taxes.

      
        
          
            
               

               

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      “Technology Transfer Agreement”
means that certain Technology Transfer Agreement by and among NTC, Micron, and
the Joint Venture Company referred to on Schedule 2.5 of the
Master Agreement Disclosure Letter.

       

      “Technology Transfer and License
Agreement” means that certain Technology Transfer and License Agreement
by and between NTC and Micron referred to on Schedule 2.1 of the
Master Agreement Disclosure Letter.

       

      “TTLA 68-50” means that certain
Technology Transfer and License Agreement For 68-50NM Process Nodes by and
between NTC and Micron referred to on Schedule 2.1 of the
Master Agreement Disclosure Letter.

       

      “Term” shall have the meaning
set forth in Section 9.1.

       

      “Third Party” means any Person
other than NTC or Micron.

       

      “Unit Process/Module
Invention” means JDP Inventions related to one or more process steps that
are performed on a semiconductor wafer and that are designed to achieve a
particular feature characteristic or structure.

       

      “Works Registration” shall have
the meaning set forth in Section
5.4(c).

       

      1.2           Certain Interpretive
Matters.

       

      (a)           Unless
the context requires otherwise, (1) all references to Sections, Articles,
Exhibits, Appendices or Schedules are to Sections, Articles, Exhibits,
Appendices or Schedules of or to this Agreement, (2) each accounting term
not otherwise defined in this Agreement has the meaning commonly applied to it
in accordance with GAAP, (3) words in the singular include the plural and
vice versa, (4) the term “including” means “including
without limitation,” and (5) the terms “herein,” “hereof,” “hereunder” and words of
similar import shall mean references to this Agreement as a whole and not to any
individual section or portion hereof.  Unless otherwise denoted, all
references to $ or
dollar amounts will be to lawful currency of the United States of
America.  All references to “day” or “days” will mean calendar
days.

       

      (b)           No
provision of this Agreement will be interpreted in favor of, or against, either
Party by reason of the extent to which (1) such Party or its counsel
participated in the drafting thereof or  (2) any such provision is
inconsistent with any prior draft of this Agreement or such
provision.

       

      ARTICLE
2

      JDP COMMITTEE; R&D
ROADMAP

       

      2.1          JDP Committee; Patent Review
Committee.  Micron and NTC shall form and operate the JDP
Committee to govern their performance under this Agreement in accordance with
the JDP Committee Charter attached as Schedule
2.  The JDP Committee shall form and oversee the Patent Review
Committee, which shall also operate in accordance with the applicable provisions
of Schedule
2.

      
        
          
            
               

               

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      2.2          JDP
Co-Chairmen.  Micron and NTC shall notify the other Party in
writing of the identity of the full-time employee of such Party who will serve
as its JDP Co-Chairman.  Each JDP Co-Chairman shall serve on the JDP
Committee as provided in Schedule 2 and shall
devote his or her attention to the performance of this Agreement by the
Parties.  Each of Micron and NTC may replace its respective JDP
Co-Chairman upon written notice to the other Party; provided that each Party’s
JDP Co-Chairman must at all times be a full-time employee of such
Party.

       

      2.3           R&D
Roadmap.

       

      (a)           [***].

       

      (b)           [***].

       

      (c)           The
first R&D Roadmap shall contain the Stack DRAM Designs and Process
Technology described in the SOWs identified on Schedule
1.

       

      ARTICLE
3

      DEVELOPMENT PROJECTS AND
SOWS

       

      3.1           Content of
SOWs.   The Parties expect that each SOW will conform to
the following requirements, as applicable:

       

      (a)           Each
SOW will contain at least the following:

       

      [***]

       

      (b)           The
Process SOW for each Primary Process Node and each Process SOW effective as of
the Effective Date will specify that the work to be performed thereunder will be
performed [***]

       

      (c)           [***]

       

      (d)           Process
SOWs for Optimized Process Nodes may specify that the work to be performed
thereunder can be performed [***]

       

      (e)           Process
SOWs entered after the Effective Date for work to be performed
[***]

       

      (f)           
[***]

       

      (g)           [***]

       

      (h)           [***]

      
        
          
            
               

               

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      3.2          Proposal and Adoption of
SOWs.

       

      (a)           Each
Party solely through its JDP Co-Chairman, or both of the Parties jointly through
the JDP Chairmen, may submit proposed SOWs to the JDP Committee for
consideration and potential adoption as an SOW hereunder.  SOWs can be
proposed for the design of products that are not at the time of submission
Commodity Stack DRAM Products.

       

      (b)           [***]

       

      (c)           The
SOWs identified on Schedule 1 are deemed
SOWs under this Agreement adopted by the JDP Committee as of the Effective
Date.

       

      (d)           [***]

       

      3.3           Development Restrictions;
Rejected Development Work.

       

      [***]

       

      3.4           SOW Performance
Monitoring.

       

      [***]

       

      3.5           JDP Committee
Monitoring.  [***]

       

      3.6           On-Site
Visitations.  Each Party and its Representatives shall observe
and be subject to all safety, security and other policies and regulations
regarding visitors and contractors while on site at a facility of the other
Party or its Affiliate.  A Party's Representatives who access any
facility of the other Party or its Affiliate shall not interfere with, and
except as otherwise agreed by the Parties, shall not participate in, the
business or operations of the facility accessed.

       

      3.7           Mask Source Qualification
and Mask Purchases.

       

      (a)           [***]

       

      (b)           [***]

       

      (c)           [***]

       

      3.8           Repository of JDP Work
Product.

       

      (a)           Micron
and NTC each shall use commercially reasonable efforts to each establish a
repository in its own facility for storing the JDP Work Product described on
Schedules 3,
7, 8 or 9 separately from
other technology, information and data of such Party and any Third Parties.  Each Party shall
implement procedures so that such JDP Work Product is either created in such
repository or added to such repository in the English language promptly after
creation by employees of such Party, its Existing Entities and its wholly-owned
Subsidiaries assigned to an SOW.  Such repositories in Micron
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      NTC, its
Existing Entities and its wholly-owned Subsidiaries assigned to perform work
under any SOW(s) as reasonably required for such employees to perform their
assigned work.  Such repositories in NTC shall be accessible to
employees of Micron, its Existing Entities and its wholly-owned Subsidiaries
assigned to perform work under any SOW as reasonably required for such employees
to perform their assigned work.  The JDP Co-Chairmen and JDP Committee
Members shall have full access to such repositories.  Once both such
repositories are operational electronic databases that can be synchronized at
least with the other database to contain the same content as that stored in such
other database, the Parties shall use commercially reasonable efforts to have
the databases automatically and electronically synchronized at least once per
day.

       

      (b)           Without
limiting the foregoing Section 3.8(a), the
Parties shall also use their respective commercially reasonable efforts to
accomplish the following within the time frames described below:

       

      
        	
                 
      

              	
                (i)

              	
                Phase
      1:

              

      

       

      
        	
                 
      

              	
                1)

              	
                Establish
      secure network connectivity between Micron and NTC within [***] after the
      Effective Date.

              

      

       

      
        	
                 
      

              	
                2)

              	
                Establish
      secure email between Micron and NTC within [***] after the Effective
      Date.

              

      

       

      
        	
                 
      

              	
                3)

              	
                Establish
      a FTP environment to allow download of data between Micron and NTC within
      [***] after the Effective Date.

              

      

       

      
        	
                 
      

              	
                (ii)

              	
                Phase
      2:

              

      

       

      
        	
                 
      

              	
                1)

              	
                Establish
      an initial repository for the JDP Work Product described on Schedules 3,
      7, 8 or 9 with a
      publishing document process between Micron and NTC within [***] after the
      Effective Date.  The replication process between Micron's and
      NTC's repositories would occur
[***].

              

      

       

      
        	
                 
      

              	
                2)

              	
                Provide
      a single remote access point for approved users within [***] after the
      Effective Date. This access point will allow real time equal access to all
      individuals assigned to an SOW.

              

      

       

      
        	
                 
      

              	
                (iii)

              	
                Phase
      3:

              

      

       

      
        	
                 
      

              	
                1)

              	
                For
      the remote access point from NTC each approved NTC user will be provided
      access to approved Micron secured operational applications.  The
      first group of secured operational applications will be provided within
      [***] after the Effective Date.

              

      

       

      ARTICLE
4

      PAYMENTS

       

      4.1           Development Cost
Sharing.  Micron and NTC shall share SOW Costs as specified on
Schedule
4.

      
        
          
            
               

               

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      4.2           Payments.  All
amounts owed by a Party under this Agreement are stated, calculated and shall be
paid in United States Dollars ($ U.S.).

       

      4.3           Interest.  Any
amounts payable to Micron hereunder and not paid within the time period provided
shall accrue interest, from the time such payment was due until the time payment
is actually received, at the rate of [***], or the highest rate permitted by
Applicable Law, whichever is lower.

       

      4.4           Taxes.

       

      (a)           All
sales, use and other transfer Taxes imposed directly on or solely as a result of
the services or technology transfers or the payments therefor provided herein
shall be stated separately on the service provider’s or technology transferor’s
invoice, collected from the service provider or technology transferor and shall
be remitted by service provider or technology transferor to the appropriate
Taxing Authority (“Recoverable
Taxes”), unless the service recipient or technology transferee provides
valid proof of tax exemption prior to the Effective Date or otherwise as
permitted by law prior to the time the service provider or technology transferor
is required to pay such taxes to the appropriate Taxing
Authority.  When property is delivered and/or services are provided or
the benefit of services occurs within jurisdictions in which collection and
remittance of Taxes by the service recipient or technology transferee is
required by law, the service recipient or technology transferee shall have sole
responsibility for payment of said Taxes to the appropriate Taxing
Authority.  In the event any Taxes are Recoverable Taxes and the
service provider or technology transferor does not collect such Taxes from the
service recipient or technology transferee or pay such Taxes to the appropriate
Governmental Entity on a timely basis, and is subsequently audited by any Taxing
Authority, liability of the service recipient or technology transferee will be
limited to the Tax assessment for such Recoverable Taxes, with no reimbursement
for penalty or interest charges or other amounts incurred in connection
therewith. Except as provided in Section 4.4(b), Taxes
other than Recoverable Taxes shall not be reimbursed by the service recipient or
technology transferee, and each Party is responsible for its own respective
income Taxes (including franchise and other Taxes based on net income or a
variation thereof), Taxes based upon gross revenues or receipts, and Taxes with
respect to general overhead, including but not limited to business and
occupation Taxes, and such Taxes shall not be Recoverable Taxes.

       

      (b)           In
the event that the service recipient or technology transferee is prohibited by
Applicable Law from making payments to the service provider or technology
transferor unless the service recipient or technology transferee deducts or
withholds Taxes therefrom and remits such Taxes to the local Taxing Authority,
[***].

       

      ARTICLE
5

      INTELLECTUAL
PROPERTY

       

      5.1           Existing
IP.  Nothing in this Agreement shall be construed to transfer
ownership of or grant a license under any IP Rights, Patent Rights or other
intellectual property or technology of a Party existing as of the Effective Date
from one Party to the other Party.  Any license to any of the
foregoing shall be governed by the Technology Transfer and License
Agreement.

      
        
          
            
               

               

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      5.2           Pooled Invention Procedures;
Inventorship; Authorship.

       

      (a)           Within
forty-five (45) days of the Effective Date, each of the Parties shall introduce
procedures to encourage and govern the submission of disclosures of JDP
Inventions by their respective Representative(s) involved in a SOW, whether as
Representatives of NTC, of Micron or of the Joint Venture Company, to the JDP
Co-Chairmen for subsequent submission to the JDP Committee.  Such
procedures shall include (i) a policy statement encouraging the submission of
such invention disclosures, (ii) appropriate invention disclosure forms, and
(iii) a commitment on the part of each of NTC and Micron to obtain relevant
invention disclosure forms from their respective Representatives with respect to
JDP Inventions and to submit such forms for review by the Patent Review
Committee. Each of the Parties shall actively administer such procedures and
submit and cause their respective Representatives promptly to complete and
submit invention disclosures on JDP Inventions to the Patent Review
Committee.

       

      (b)           Inventorship
for JDP Inventions shall be determined in accordance with United States
patent laws.

       

      (c)           Authorship
for all JDP Work Product, whether registered or not, shall be determined in
accordance with United States copyright laws and laws concerning Mask Work
Rights, as applicable.

       

      5.3           JDP Inventions; Pool and
Draft.

       

      [***]

       

      5.4           Ownership of JDP Inventions
and JDP Work Product.

       

      (a)           As
between the Parties, [***]

       

      (b)           Except
as provided in Sections 5.3 and
5.4(a), all JDP
Designs, JDP Inventions, JDP Process Nodes, JDP Work Product, and all IP Rights
associated with any of the foregoing, shall be, [***].  Subject to any
applicable provisions of the Joint Venture Documents, each of Micron and NTC may
exploit their interest in any JDP Designs, JDP Inventions, JDP Process Nodes,
JDP Work Product, and IP Rights associated therewith without a duty of
accounting to any other Party.

       

      (c)           [***]

       

      5.5           Costs.  All
out-of-pocket costs and expenses relating to Patent Prosecution, including
attorneys’ fees, incurred by a Party pursuant to this Agreement shall be borne
solely by the owner thereof.  In the case of Works Registrations for
JDP Work Product, such joint owners shall split the costs thereof
equally.

       

      5.6           Cooperation.  With
respect to all Patent Prosecution and Works Registration activities under this
Agreement, each Party shall:

       

      (a)           execute
all further instruments to document their respective ownership consistent with
this Article 5
as reasonably requested by any other Party, including causing its 

      
        
          
            
               

               

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      respective
Representatives to execute written assignments of JDP Inventions and JDP Work
Product to Micron, NTC or both of them jointly as provided herein (at no cost to
the assignee); and

       

      (b)           using
commercially reasonable efforts to make its Representatives available to the
other Party (or to the other Party’s authorized attorneys, agents or
Representatives), to the extent reasonably necessary to enable the appropriate
Party hereunder to undertake Patent Prosecution and Works
Registration.

       

      5.7           Third Party
Infringement.

       

      (a)           The
sole owner of the Patent Rights with respect to any JDP Invention shall have the
exclusive right to institute and direct legal proceedings against any Third
Party believed to be infringing or otherwise violating any such Patent
Rights.

       

      (b)           If
any Party takes action pursuant to Section 5.7(a), then
the other Party shall cooperate to the extent reasonably necessary and at the
first Party’s sole expense and subject to the first Party’s
request.  To the extent required by Applicable Law, such other Party
shall join the action and, if such other Party elects, may choose to be
represented in any such legal proceedings using counsel of its own choice, and
at its own expense.  Each Party shall assert and not waive the joint
defense privilege with respect to all communications between the Parties
reasonably the subject thereof.

       

      (c)           The
Parties shall keep each other informed of the status of any litigation or
settlement thereof initiated by a Third Party concerning a Party’s manufacture,
production, use, development, sale, offer for sale, importation, exportation or
distribution of Stack DRAM Products manufactured by the Joint Venture Company;
provided, however, that
no settlement or consent judgment or other voluntary final disposition of a suit
under this Section 5.7(c)
may be undertaken by a Party without the consent of another Party (which consent
not to be unreasonably withheld) if such settlement would require such other
Party or the Joint Venture Company to be subject to an injunction, subject to a
requirement to alter a Process Node or Stack DRAM Design, admit wrongdoing or
make a monetary payment.  The Party sued by the Third Party as
contemplated by this Section shall not object to joinder in such action by the
other Party to the extent such joinder is permitted by Applicable
Law.

       

      5.8           No Other Rights or
Licenses.  Except for the allocation of ownership of JDP
Inventions and JDP Work Product, and the ownership of their corresponding Patent
Rights and IP Rights therein, as stated in this Article 5, no right,
license, title or interest under any intellectual property is granted under this
Agreement, whether by implication, estoppel or otherwise.  Certain
rights, licenses and covenants not to sue under Intellectual Property of Micron
and NTC are granted in other Joint Venture Documents.

       

      ARTICLE
6

      CONFIDENTIALITY

       

      6.1           Confidentiality
Obligations.

      
        
          
            
               

               

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      (a)           All
information (including JDP Work Product, JDP Inventions, JDP Process Nodes and
JDP Designs and Foundational Know-How) provided, disclosed, created or obtained
in connection with this Agreement or the performance of any of the Parties’
activities under this Agreement, including the performance of activities under a
SOW, shall be deemed “Confidential Information” subject to all applicable
provisions of the Mutual Confidentiality Agreement.  The terms and
conditions of this Agreement shall also be considered “Confidential Information”
under the Mutual Confidentiality Agreement for which each Party shall be
considered a “Receiving Party” under such agreement.

       

      (b)           Additionally,
notwithstanding whether one of the Parties solely or jointly owns JDP
Inventions, JDP Work Product, JDP Process Nodes and JDP Designs and IP Rights or
Patent Rights therein in accordance with this Agreement, each of the Parties
shall be deemed a “Receiving Party” under the Mutual Confidentiality Agreement
with respect to information embodied therein and no Party may contribute,
transfer or disclose any JDP Inventions, JDP Work Product, JDP Process Nodes,
JDP Designs or IP Rights or Patent Rights therein to any Third Party except as
provided in Section
6.2.

       

      6.2           Permitted
Disclosures.  Notwithstanding the restrictions in Section
6.1:

       

      (a)           NTC
and Micron may contribute, transfer and disclose any Confidential Information
described in Section
6.1(b) to their respective Existing Entities and wholly owned
Subsidiaries, provided
that, at the time of such contribution, transfer or disclosure, such
Existing Entity is an Affiliate of the Party seeking to contribute, transfer or
disclose such Confidential Information.

       

      (b)           Each
of Micron and NTC may disclose the JDP Inventions and related Confidential
Information, as the case may be, to its patent attorneys and patent agents and
any Governmental Entity as deemed by Micron or NTC necessary to conduct Patent
Prosecution on the JDP Inventions owned by such Party.

       

      (c)           Micron
may disclose any Confidential Information described in Section 6.1 to any
Third Party who is not a manufacturer of [***], provided that each such
disclosure shall not grant or purport to grant, explicitly, by implication by
estoppel or otherwise, to the Third Party any right, title or interest in, to or
under any Patent Rights of NTC, including Patent Rights of NTC in JDP Inventions
and shall be subject to a written obligation of confidentiality that is no less
restrictive than that applicable to the Parties under the Mutual Confidentiality
Agreement.

       

      (d)           NTC
may disclose any Confidential Information described in Section 6.1(b) to any
Third Party who is not a manufacturer of [***], provided that each such
disclosure shall not grant or purport to grant, explicitly, by implication by
estoppel or otherwise, to the Third Party any right, title or interest in, to or
under any Patent Rights of Micron, its Existing Entities or Intel Corporation,
including Patent Rights of Micron on JDP Inventions and shall be subject to a
written obligation of confidentiality that is no less restrictive than that
applicable to the Parties under the Mutual Confidentiality
Agreement.  [***].

       

      (e)           [***]

      
        
          
            
               

               

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      6.3           Conflicts.  To
the extent there is a conflict between this Agreement and the Mutual
Confidentiality Agreement, the terms of this Agreement shall
control.

       

      ARTICLE
7

      WARRANTIES;
DISCLAIMERS

       

      7.1           No Implied
Obligation.  Nothing contained in this Agreement shall be
construed as:

       

      (a)           a
warranty or representation that any manufacture, sale, lease, use or other
disposition of any products based upon JDP Work Product or JDP Inventions will
be free from infringement, misappropriation or other violation of any Patent
Rights, IP Rights or other intellectual property rights of any
Person;

       

      (b)           an
agreement to bring or prosecute proceedings against Third Parties for
infringement or conferring any right to bring or prosecute proceedings against
Third Parties for infringement; or

       

      (c)           conferring
any right to use in advertising, publicity, or otherwise, any trademark, trade
name or names, or any contraction, abbreviation or simulation thereof, of either
Party.

       

      7.2          Third Party
Software.  Use of any JDP Inventions or JDP Work Product
exchanged between the Parties under this Agreement may require use of Software
owned by a Third Party and not subject to any license granted under any of the
Joint Venture Documents.  Nothing in this Agreement shall be construed
as granting to any Party, any right, title or interest in, to or under any
Software owned by any Third Party.  Except as may be specified
otherwise in any of the other Joint Venture Documents, any such Software so
required is solely the responsibility of the each of the
Parties.  Moreover, should a Party who transfers technology under this
Agreement discover after such transfer that it has provided Software to the
other Party that it was not entitled to provide, such providing Party shall
promptly notify the other Party and the recipient shall return such Software to
the providing Party and not retain any copy thereof.

       

      7.3          Disclaimer.  [***].

       

      ARTICLE 8

      INDEMNIFICATION; LIMITATION
OF LIABILITY

       

      8.1           Indemnification.

       

      (a)           Micron
shall indemnify and hold harmless NTC, its Affiliates and their respective
directors, officers, employees, agents and other representatives (“NTC Indemnitees”) from and
against any and all Losses suffered by the NTC Indemnitees relating to personal
injury (including death) or property damage to the extent such injury or damage
was caused by the gross negligence or willful misconduct of any employee of
Micron or its Affiliate while at any facilities of NTC or its Affiliate and such
gross negligence, willful misconduct or Losses were not caused by any NTC
Indemnitee.

      
        
          
            
               

               

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      (b)           NTC
shall indemnify and hold harmless Micron, its Affiliates and their respective
directors, officers, employees, agents and other representatives (“Micron Indemnitees”) from and
against any and all Losses suffered by the Micron Indemnitees relating to
personal injury (including death) or property damage to the extent such injury
or damage was caused by the gross negligence or willful misconduct of any
employee of NTC or its Affiliate while at any facilities of Micron or its
Affiliate and such gross negligence, willful misconduct or Losses were not
caused by any Micron Indemnitee.

       

      8.2           Indemnity
Procedure.

       

      (a)           Any
Person who or which is entitled to seek indemnification under Section 8.1 (an
“Indemnified Party”)
shall promptly notify the other Party (“Indemnifying Party”) of any
such Losses for which it seeks indemnification hereunder.  Failure of
the Indemnified Party to give such notice shall not relieve the Indemnifying
Party from Losses on account of this indemnification, except if and only to the
extent that the Indemnifying Party is actually prejudiced
thereby.  Thereafter, the Indemnified Party shall deliver to the
Indemnifying Party, promptly after the Indemnified Party’s receipt thereof,
copies of all notices and documents (including court papers) received by the
Indemnified Party relating to the Losses and underlying facts and
circumstances.  The Indemnifying Party shall have the right to assume
the defense of the Indemnified Party with respect to any legal action relating
to such Losses (“Indemnified
Claim”) upon written notice to the Indemnified Party delivered within
thirty (30) days after receipt of the particular notice from the Indemnified
Party.

       

      (b)           So
long as the Indemnifying Party has assumed the defense of the Indemnified Claim
in accordance herewith and notified the Indemnified Party in writing thereof,
(1) the Indemnified Party may retain separate co-counsel, at its sole cost and
expense, and participate in the defense of the Indemnified Claim, it being
understood that the Indemnifying Party shall pay all reasonable costs and
expenses of counsel for the Indemnified Party after such time as the Indemnified
Party has notified the Indemnifying Party of such Indemnified Claim and prior to
such time as the Indemnifying Party has notified the Indemnified Party that it
has assumed the defense of such Indemnified Claim, (2) the Indemnified Party
shall not consent to the entry of any judgment or enter into any settlement with
respect to a Indemnified Claim without the prior written consent of the
Indemnifying Party (not to be unreasonably withheld, conditioned or delayed) and
(3) the Indemnifying Party will not consent to the entry of any judgment or
enter into any settlement with respect to the Indemnified Claim to be paid by an
Indemnifying Party (other than a judgment or settlement that is solely for money
damages and is accompanied by a release of all indemnifiable claims against the
Indemnified Party) without the prior written consent of the Indemnified Party
(not to be unreasonably withheld, conditioned or delayed).

       

      (c)           The
Indemnified Party and Indemnifying Party shall cooperate in the defense of each
Indemnified Claim (and the Indemnified Party and the Indemnifying Party agree
with respect to all such Indemnified Claims that a common interest privilege
agreement exists between them), including by (1) permitting the Indemnifying
Party to discuss the Indemnified Claim with such officers, employees,
consultants and representatives of the Indemnified Party as the Indemnifying
Party reasonably requests, (2) providing to the Indemnifying Party copies of
documents and samples of products as the Indemnifying Party reasonably requests
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      with
defending such Indemnified Claim, (3) preserving all properties, books, records,
papers, documents, plans, drawings, electronic mail and databases relating to
matters pertinent to the Indemnified Claim and under the Indemnified Party’s
custody or control in accordance with such Party’s corporate documents retention
policies, or longer to the extent reasonably requested by the Indemnified Party,
(4) notifying the Indemnifying Party promptly of receipt by the Indemnified
Party of any subpoena or other third party request for documents or interviews
and testimony, and (5) providing to the Indemnifying Party copies of any
documents produced by the Indemnified Party in response to, or compliance with,
any subpoena or other third party request for documents.  In
connection with any claims, unless otherwise ordered by a court, the Indemnified
Party shall not produce documents to a Third Party until the Indemnifying Party
has been provided a reasonable opportunity to review, copy and assert privileges
covering such documents, except to the extent (x) inconsistent with the
Indemnified Party’s obligations under Applicable Law and (y) where to do so
would subject the Indemnified Party or its employees, agents or representatives
to criminal or civil sanctions.

       

      8.3           Limitation of
Liability.  [***]

       

      ARTICLE
9

      TERM AND
TERMINATION

       

      9.1           Term.  The
term of this Agreement commences on the Effective Date and continues in effect
until terminated in accordance with Section
9.2.  (The period from the Effective Date until termination is
the “Term”).

       

      9.2           Termination of this
Agreement.

       

      (a)           Unless
otherwise mutually agreed, [***].

       

      (b)           Either
Party may terminate this Agreement [***].

       

      (c)           Either
Party may terminate this Agreement by notice to  the other Party if
the other Party commits a material breach of this Agreement and such breach
remains uncured [***] of the breach.

       

      (d)           Either
Party may terminate this Agreement immediately upon notice to the other Party in
the event of either (i) a Change of Control of the other Party; (ii) the other
Party becomes bankrupt or insolvent, or files a petition in bankruptcy or makes
a general assignment for the benefit of creditors or otherwise acknowledges in
writing insolvency, or is adjudged bankrupt, and such Party (A) fails to assume
this Agreement in any such bankruptcy proceeding within thirty (30) days after
filing or (B) assumes and assigns this Agreement to a Third Party in violation
of Section
‎10.3; (iii) the other
Party goes into or is placed in a process of complete liquidation; (iv) a
trustee or receiver is appointed for any substantial portion of the business of
the other Party and such trustee or receiver is not discharged within sixty (60)
days after appointment; (v) any case or proceeding shall have been commenced or
other action taken against the other Party in bankruptcy or seeking liquidation,
reorganization, dissolution, a winding-up arrangement, composition or
readjustment of its debts or any other relief under any bankruptcy, insolvency,
reorganization or similar act or law of any jurisdiction now or hereafter

      
        
          
            
               

               

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      in effect
and is not dismissed or converted into a voluntary proceeding governed by clause
(ii) above within sixty (60) days after filing; or (vi) there shall have been
issued a warrant of attachment, execution, distraint or similar process against
any substantial part of the property of the other Party and such event shall
have continued for a period of sixty (60) days and none of the following has
occurred:  (A) it is dismissed, (B) it is bonded in a manner
reasonably satisfactory to the other of Micron or NTC, or (C) it is
discharged.

       

      (e)           [***]
may terminate this Agreement in accordance with Section III.D.5 of
Schedule
2.

       

      9.3           SOWs.

       

      (a)           The
term of any SOW (together with the portions of this Agreement applicable to such
SOW(s)) commences upon the effective date set forth in the SOW and continues in
effect until the first to occur of:  (i) completion of the work to be
performed thereunder, as determined in accordance with the applicable SOW and
(ii) the JDP Committee agrees to terminate the work under a SOW or the
SOW.

       

      (b)           Micron
or NTC may terminate any SOW by notice to the other Party if such other Party
commits a material breach of this Agreement with respect to such SOW and such
breach remains uncured for more than thirty (30) days after notice of the
breach.

       

      (c)           Termination
of any or all SOW(s) does not automatically terminate this
Agreement.  Termination of this Agreement automatically terminates all
SOW(s), unless otherwise mutually agreed by Micron and NTC.

       

      9.4          Effects of
Termination.

       

      (a)           Termination
of this Agreement shall not affect any of the Parties’ respective rights accrued
or obligations owed before termination.  In addition, the following
shall survive termination of this Agreement for any reason:  Articles 1, 4, 6, 7, 8 and 10 and Sections  5.1,
5.2(b) and
5.2(c), 5.3 through 5.6, 5.8 and 9.4.

       

      (b)           Upon
termination of any SOW for any reason, each Party’s delivery obligation with
respect to any JDP Work Product produced thereunder before such termination
shall survive such termination.  Moreover, termination of a SOW shall
not affect payment obligations accrued prior to the date of such termination in
connection with such SOW.

       

      (c)           The
JDP Committee and the Patent Review Committee shall continue to exist and
operate in accordance with Schedule 2 after
termination as long as necessary to continue to carryout the provisions of this
Agreement that survive termination in accordance therewith.

       

      (d)           Upon
termination of this Agreement by a Deadlock Terminating Party, each of the
Parties shall have those post-termination obligations specified in Section III.D.5 of
Schedule 2 for
the Post Termination Funding Period, if applicable.

      
        
          
            
               

               

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      ARTICLE
10

      MISCELLANEOUS

       

      10.1                  Notices.  All
notices and other communications hereunder shall be in writing and shall be
deemed given upon (a) transmitter’s confirmation of a receipt of a
facsimile transmission, (b) confirmed delivery by a standard overnight carrier
or when delivered by hand, or (c) delivery in person, addressed at the following
addresses (or at such other address for a party as shall be specified by like
notice):

       

      If to
NTC:                         Nanya
Technology Corporation

      Hwa-Ya Technology Park
669

      Fuhsing 3 RD. Kueishan

      Taoyuan, Taiwan, ROC

      Attention: Legal
Department

      Fax: 886.3.396.2226

      

      If to
Micron:                    Micron
Technology, Inc.

      8000 S. Federal Way

      Mail Stop 1-507

      Boise, ID 83716

      Attention: General
Counsel

      Fax: 208.368.4537

      

       

      10.2                  Waiver.  The
failure at any time of a Party to require performance by the other Party of any
responsibility or obligation required by this Agreement shall in no way affect a
Party’s right to require such performance at any time thereafter, nor shall the
waiver by a Party of a breach of any provision of this Agreement by the other
Party constitute a waiver of any other breach of the same or any other provision
nor constitute a waiver of the responsibility or obligation itself.

       

      10.3                  Assignment.  [***]

       

      10.4                  Third Party
Rights.  Nothing in this Agreement, whether express or implied,
is intended or shall be construed to confer, directly or indirectly, upon or
give to any Person, other than the Parties hereto, any legal or equitable right,
remedy or claim under or in respect of this Agreement or any covenant, condition
or other provision contained herein.

       

      10.5                  Force
Majeure.  The Parties shall be excused from any failure to
perform any obligation hereunder to the extent such failure is caused by a Force
Majeure Event.

       

      10.6                  Choice of
Law.  Except as provided in Sections 5.2 (b) and
(c), this
Agreement shall be construed and enforced in accordance with and governed by the
laws of the State of Delaware, USA, without giving effect to the principles of
conflict of laws thereof.

       

      10.7                  Jurisdiction;
Venue.  Any suit, action or proceeding seeking to enforce any
provision of, or based on any matter arising out of or in connection with, this
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      brought
in a state or federal court of competent jurisdiction located in the State of
California, USA, and each of the Parties to this Agreement hereby consents and
submits to the exclusive jurisdiction of such courts (and of the appropriate
appellate courts therefrom) in any such suit, action or proceeding and
irrevocably waives, to the fullest extent permitted by Applicable Law, any
objection which it may now or hereafter have to the laying of the venue of any
such suit, action or proceeding in any such court or that any such suit, action
or proceeding which is brought in any such court has been brought in an
inconvenient forum.

       

      10.8                  Headings.  The
headings of the Articles and Sections in this Agreement are provided for
convenience of reference only and shall not be deemed to constitute a part
hereof.

       

      10.9                  Export
Control.  Each Party agrees that it will not
knowingly:  (a) export or re-export, directly or indirectly, any
technical data (as defined by the U.S. Export Administration Regulations)
provided by the other Party or (b) disclose such technical data for use in, or
export or re-export directly or indirectly, any direct product of such technical
data, including Software, to any destination to which such export or re-export
is restricted or prohibited by United States or non-United States law,
without obtaining prior authorization from the U.S. Department of Commerce and
other competent Government Entities to the extent required by Applicable
Laws.

       

      10.10                Entire
Agreement.  This Agreement, together with its Schedules and
SOWs and the agreements and instruments expressly provided for herein, including
the applicable terms of the other Joint Venture Documents, constitute the entire
agreement of the Parties hereto with respect to the subject matter hereof and
supersede all prior agreements and understandings, oral and written, between the
Parties hereto with respect to the subject matter hereof.

       

      10.11                Severability.  Should
any provision of this Agreement be deemed in contradiction with the laws of any
jurisdiction in which it is to be performed or unenforceable for any reason,
such provision shall be deemed null and void, but this Agreement shall remain in
full force in all other respects.  Should any provision of this
Agreement be or become ineffective because of changes in Applicable Laws or
interpretations thereof, or should this Agreement fail to include a provision
that is required as a matter of law, the validity of the other provisions of
this Agreement shall not be affected thereby.  If such circumstances
arise, the Parties hereto shall negotiate in good faith appropriate
modifications to this Agreement to reflect those changes that are required by
Applicable Law.

       

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

       

      <
Signature page follows >

      
        
          
             

             

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      IN
WITNESS WHEREOF, this Agreement has been executed and delivered as of the
Effective Date.

       

      

      NANYA
TECHNOLOGY CORPORATION

      

       

      By: /s/ Jih
Lien                                                                      

       

      Name:  Jih
Lien

       

      Title:  President

       

      

      

      

      MICRON
TECHNOLOGY, INC.

      

      

      By:  /s/ D. Mark
Durcan       

                                                                     

      Name:  D.
Mark Durcan

       

      Title:  President
and Chief Operating Officer

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      THIS
IS THE SIGNATURE PAGE FOR THE JOINT DEVELOPMENT PROGRAM AGREEMENT ENTERED INTO
BY AND BETWEEN NTC AND MICRON 

      
        
          
             

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      Schedule
1

      

      SOWs as of Effective
Date

      

      [***]

      

       

      (All the
above, as attached.)

       

      

       

      
        
          
             

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            NTC
Micron CONFIDENTIAL

            

          

        

      

      Schedule
2

       

      JDP Committee and Patent
Review Committee Charter

       

      

      
        	
                I.

              	
                Definitions.  For
      purposes of this Schedule 2
      only, the following terms shall have the meaning ascribed to them
      below:

              

      

       

      “Committee”” means either the
JDP Committee or the Patent Review Committee.

       

      “Deadlock” has the meaning
provided in Section
III.D.3. of this Schedule
2.

       

      “JDP Co-Chairman” and “JDP Co-Chairmen” shall have
the meaning provided in Section III.B. of
this Schedule 2.

       

      “Micron Matter” means
[***].

       

      “Manufacturing Committee” means
the committee formed by MNL and NTC pursuant to the Joint Venture
Agreement.

       

      “Member” means a member of the
JDP Committee or Patent Review Committee appointed by a Party pursuant to Section III.A.1
of this Schedule
2.

       

      “NTC Matter” means
[***].

       

      “Senior Member” has the meaning
provided in Section
III.B.1 of this Schedule
2.

       

      “Tie” means, with respect to
any vote of the JDP Committee, that the vote of Micron and the vote of NTC are
not the same.

       

      
        	
                II.

              	
                Purpose
      and Functions of the
Committees.

              

      

       

      
        	
                 
      

              	
                A.

              	
                JDP
      Committee.  The primary purpose of the JDP Committee is
      to enable, coordinate and guide the activities of the Parties under this
      Agreement relating to the development of JDP Designs, JDP Process Nodes
      and other technology development activities as the JDP Committee shall
      determine.  In fulfilling such purpose, the JDP Committee shall
      have the duty and authority to perform the following functions, as more
      fully described in the Agreement:

              

      

       

      [***]

       

      
        	
                 
      

              	
                B.

              	
                Patent Review
      Committee.  The primary purpose of the Patent Review
      Committee [***]

              

      

       

      
        	
                III.

              	
                Membership
      and Procedure.

              

      

       

      
        	
                 
      

              	
                A.

              	
                Membership on
      Committees.

              

      

      
        
          
            
               

              Schedule
2

              DLI-6195530v3

            

             

          

          
            - 25
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              NTC
Micron CONFIDENTIAL

              

            

          

        

      

      
        	
                 
      

              	
                1.

              	
                Number and Appointment
      of Committee Members.  The JDP Committee and Patent
      Review Committee [***].  One-half of the Members of each
      Committee shall be appointed by Micron and one-half shall be appointed by
      NTC.  The Joint Venture Company cannot appoint any Members to
      either Committee.  The qualifications of any Member shall be
      determined in the discretion of the Party that appoints such
      Member.

              

      

       

      
        	
                 
      

              	
                2.

              	
                Senior
      Members.  Micron and NTC shall each promptly designate
      one (1) of the Members appointed by it to the JDP Committee to be its
      “Senior Member”
      pursuant to a written notice provided to the other
      Party.  [***]  Either Party may designate a new or
      additional Senior Member from among the Members appointed by such Party to
      the JDP Committee at any time upon written notice to the other Party (if
      any of such other Members have sufficient
  authority).

              

      

       

      
        	
                 
      

              	
                3.

              	
                Removal and
      Vacancies.  Each of Micron and NTC, in its sole
      discretion, may remove any Member appointed by it to a
      Committee.  If any Member is so removed or resigns from a
      Committee or otherwise ceases to serve on a Committee for any reason
      (e.g., by reason
      of the separation of such Member from employment by the Party that
      appointed such Member, such Member’s death or disability, etc.), the Party
      that appointed such Member shall promptly notify the other Party of such
      Member’s withdrawal from the Committee.  Any vacancy on a
      Committee shall be filled by the Party that appointed the Member who has
      ceased to serve on the Committee.

              

      

       

      
        	
                 
      

              	
                B.

              	
                Co-Chairmen of the JDP
      Committee.  Each of Micron and NTC shall have the right
      to designate one of the Members that it appoints to the JDP Committee as a
      co-chairman of the JDP Committee (each, a “JDP Co-Chairman” and
      together the “JDP
      Co-Chairmen”).  [***]

              

      

       

      
        	
                 
      

              	
                C.

              	
                Voting.  [***]

              

      

       

      
        	
                 
      

              	
                D.

              	
                Deadlock.

              

      

       

      
        	
                 
      

              	
                1.

              	
                Micron Matters; NTC
      Matters.  [***]

              

      

       

      
        	
                 
      

              	
                2.

              	
                [***]

              

      

       

      
        	
                 
      

              	
                3.

              	
                [***]

              

      

       

      
        	
                 
      

              	
                4.

              	
                [***]

              

      

       

      
        	
                 
      

              	
                5.

              	
                [***]

              

      

       

      
        	

              	
                E.

              	
                Notice; Waiver;
      Meeting Location.  The JDP Committee and Patent Review
      Committee each shall hold meetings at least quarterly and upon not less
      than

              

      

      
        
          
            
               

              Schedule
2

              DLI-6195530v3

            

             

          

          
            - 26
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              NTC
Micron CONFIDENTIAL

              

            

          

        

      

      
        	
                 
      

              	
                 

              	
                fifteen
      (15) Business Days’ written notice.  Additional meetings of a
      Committee shall be held (A) at such other times as may be determined by
      the Committee, (B) at the request of at least two (2) Members of the
      Committee, upon not less than five (5) Business Days’ written notice or
      (C) in accordance with Section III.D.3
      of this Schedule
      2, following a failure by the JDP Committee to adopt or reject a
      proposal for action presented to it.  The Co-Chairmen shall
      endeavor to agree upon the location of each meeting of the JDP
      Committee.  If they fail to agree with respect to any such
      meeting, then they shall alternate, with one Co-Chairman deciding upon the
      location of such meeting, and then the other Co-Chairman deciding upon the
      location of the following meeting, etc.  For purposes of this
      Schedule
      2, notice may be provided via facsimile, email or any other manner
      provided in Section 10.1 of
      this Agreement, or by telephonic notice to each Member.  The
      presence of any Member at a meeting shall constitute a waiver of notice of
      the meeting with respect to such Member, unless such Member declares at
      the meeting that such Member objects to the notice as having been
      improperly given.  Each Committee shall cause written minutes to
      be prepared of all actions taken by the Committee and shall cause a copy
      thereof to be delivered to each Member within fifteen (15) Business
      Days.

              

      

       

      
        	
                 
      

              	
                F.

              	
                Action Without a
      Meeting.  On any matter that is to be voted on, consented
      to or approved by a Committee, the Committee may take such action without
      a meeting, without prior notice and without a vote if a consent or
      consents in writing, setting forth the action so taken, shall be signed by
      both Senior Members of the JDP Committee or all members of the Patent
      Review Committee.

              

      

       

      
        	
                 
      

              	
                G.

              	
                Meetings by
      Telecommunications.  Unless a Committee determines
      otherwise, Members of a Committee shall have the right to participate in
      all meetings of the Committee by means of a conference telephone or
      similar telecommunications service 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.  Any reference in this Schedule 2 to
      attendance or participation by a Member at a meeting of the JDP Committee
      shall be deemed to refer to attendance in person or attendance by means of
      a telecommunications service pursuant to this Section III.G
      of this Schedule
      2.

              

      

       

      
        	
                 
      

              	
                H.

              	
                Compensation of
      Members of Committees.  The Members of a Committee, in
      their capacity as such, shall not receive compensation, except with
      respect to any Member as such Member and the Party that appointed such
      Member shall otherwise mutually agree.  Each Party shall bear
      the cost and expenses incurred by its appointed Members of a Committee in
      connection with the activities of the
Committee.

              

      

       

      
        
          
             

            Schedule 2

            DLI-6195530v3

          

           

        

        
          - 27
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            NTC
Micron CONFIDENTIAL

            

          

        

      

      Schedule
3

      

      Potential Deliverables For
Each Stack DRAM Design Developed under a Design SOW

      

      

      Deliverables
as listed in this Schedule can be added, amended, or removed for each SOW as
approved by the JDP.

      

      [***]

       

      

       

      
        
          
             

            Schedule 3

            DLI-6195530v3

          

           

        

        
          - 28
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            NTC
Micron CONFIDENTIAL

            

          

        

      

      Schedule
4

       

      Payment of SOW Costs and
Reporting

       

      

      
        	
                I.

              	
                Cost
      Contribution.  [***]

              

      

       

      
        	
                II.

              	
                SOW
      Costs.

              

      

       

      
        	
                 
      

              	
                A.

              	
                The
      term “SOW Costs”
      as it applies to the costs associated with a Party’s development
      activities under individual SOWs, or as part of the annual budget adopted
      by the JDP Committee, means, any of the following types of costs relating
      to a Party’s activities under that SOW, as calculated in accordance with
      U.S. GAAP for Micron and in accordance with Republic of China GAAP for NTC
      and each such Party’s internal accounting practices thereunder as
      consistently applied:

              

      

       

       

      [***]

       

      
        	
                 
      

              	
                B.

              	
                Cost Segregation and
      Allocation Principles.

              

      

       

      [***]

       

      
        	
                III.

              	
                Cost
      Reports.

              

      

       

      [***]

       

      
        	
                IV.

              	
                Parties’
      Respective Share of Costs.  [***]

              

      

       

      
        	
                V.

              	
                Payments.

              

      

       

      
        	
                 
      

              	
                A.

              	
                [***]

              

      

       

      
        	
                 
      

              	
                B.

              	
                [***]

              

      

       

      
        	
                 
      

              	
                C.

              	
                [***]

              

      

       

      
        	
                 
      

              	
                D.

              	
                [***]

              

      

       

      
        	
                 
      

              	
                E.

              	
                [***]
      Section
      10.1.  Such reports and invoices should be sent to the
      following contacts or such other contact as may be specified hereafter
      pursuant to a notice sent in accordance with Section
      10.1:

              

      

       

      

      
        	
                 
      

              	
                1.

              	
                Reports and Invoices
      to NTC:

              

      

      

      [***]

      Nanya
Technology Corp.

      
        
          
            
               

              Schedule 4

              DLI-6195530v3

            

             

          

          
            - 29
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      Hwa-Ya
Technology Park 669, Fuhsing 3 RD. Kueishan Taoyuan, Taiwan, R. O.
C.

      [***]

      

      
        	
                 
      

              	
                2.

              	
                Reports to
      Micron:

              

      

      

      [***]

      Micron
Technology, Inc.

      8000 S.
Federal Way

      P.O. Box
6, MS 1-720

      Boise,
Idaho, USA 83707-0006

      [***]

      

      
        	
                 
      

              	
                3.

              	
                Invoices to
      Micron:

              

      

      

      [***]

      Micron
Technology, Inc.

      8000 S.
Federal Way

      P.O. Box
6, MS 1-106

      Boise,
Idaho, USA 83707-0006

      [***]

      

      
        	
                 
      

              	
                F.

              	
                Payments.  All
      payments under this Agreement shall be made in United States Dollars by
      wire transfer to a bank account of Micron designated by the following
      person or such other manner designated by such
  person:

              

      

       

      
        	
                 
      

              	
                1.

              	
                Payments to
      Micron:

              

      

       

      [***]

      8000 S.
Federal Way

      P.O. Box
6, MS 1-107

      Boise,
Idaho, USA 83707-0006

      [***]

      

      
        	
                 
      

              	
                2.

              	
                Payments to
      Papaya:

              

      

       

      [***]

      Nanya
Technology Corp.

      Hwa-Ya
Technology Park 669, Fuhsing 3 RD. Kueishan Taoyuan, Taiwan, R. O.
C.

      [***]

       

      
        	
                VI.

              	
                Audit
      Rights; Records.  Each of
      Micron and NTC shall have the right to have an independent auditor audit
      not more than twice per calendar year, upon reasonable advance written
      notice, during normal business hours and on a confidential basis subject
      to the Mutual Confidentiality Agreement, all records and accounts of the
      other such Party 

              

        
          
            
               

              Schedule 4

              DLI-6195530v3

            

             

          

          
            - 30
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                and
      of the Joint Venture Company relevant to the calculation of SOW Costs and
      sharing thereof under this Schedule in the [***] immediately preceding the
      date of the audit; provided however,
      neither Party shall be obligated to provide any records and book of
      accounts existing prior to the Effective Date.  Each Party shall
      for at least [***] from the date of their creation, keep complete and
      accurate records and books of accounts relevant to such calculations in
      sufficient detail to enable a complete and detailed audit to be
      conducted.  The Party who performs any such audit shall provide
      a report of its findings to the other Party promptly upon completion of
      the audit.  The Parties will promptly correct any discrepancies
      in the amount of SOW Costs incurred and/or shared by Micron and NTC
      contrary to that intended by this
Schedule.

              

      

       

      
        
          
             

            Schedule 4

            DLI-6195530v3

          

           

        

        
          - 31
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      Schedule
5

       

      

       

      Pooling
Ratios

       

      [***]

      
        
          
             

            Schedule 5

            DLI-6195530v3

          

           

        

        
          - 32
-

          
            

          

        

        
           

        

      

      Schedule
6

       

      

       

      Existing Entities as of the
Effective Date

       

      
        Micron Existing
Entities:

      

       

      
        [***]

      

       

      

       

      

       

      NTC Existing
Entities:

       

      [***]

       

      
        
          
            Schedule 6

            DLI-6195530v3

          

           

        

        
          - 33
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      Schedule
7

       

      

       

      JDP Potential Scope of
Product Engineering

       

      

      [***]

       

      
        
          
             

            Schedule 7

            DLI-6195530v3

          

           

        

        
          - 34
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      Schedule
8

       

      

       

      Qualification

       

      Process
Qualification or Design Qualification, as it pertains to any particular SOW,
could be defined in the SOW to include any or all of the following (or
additional things) and likely will be different between Stack DRAM Designs for
Stack DRAM Modules and Stack DRAM Products:

      

      
        	
                I.

              	
                Process
      Qualification:

              

      

       

      
        	
                 
      

              	
                A.

              	
                Method:

              

      

       

      [***]

       

      
        	
                 
      

              	
                B.

              	
                Tests that could be
      performed include: [***]

              

      

       

      
        	
                II.

              	
                Design
      Qualification:

              

      

       

      
        	
                 
      

              	
                A.

              	
                Method:

              

      

       

      [***]

       

      
        	
                 
      

              	
                B.

              	
                Measurements that
      could be taken include:
[***]

              

      

       

      
        
          
             

            Schedule 8

            DLI-6195530v3

          

           

        

        
          - 35
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      Schedule
9

       

      

       

      Process SOW Documentation
and Deliverables

       

      

      Documentation
and deliverables in an SOW could include some or all of the following (or
additional things):

      

      [***]

       

      

      
        
          
             

            Schedule 9

            DLI-6195530v3

          

           

        

        
          - 36
-

          
            

          

        

        
           

        

      

      Schedule
10

      

      Example Staged Process Flow
for Technology Transfer

      

      [***]

       

      

      

      
        
          Schedule 10

          DLI-6195530v3

        

        - 37
-

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