Document:

exhibit10_6.htm

    

      Exhibit
10.6

      MICRON
TECHNOLOGY, INC.

      AMENDED
AND RESTATED

      1998
NON-EMPLOYEE DIRECTOR STOCK INCENTIVE PLAN

      

      

      1.           Purpose. The purpose
of the Micron Technology, Inc. 1998 Non-Employee Director Stock Incentive Plan
is to attract, retain and compensate highly-qualified individuals who are not
employees of Micron Technology, Inc. or any of its subsidiaries or affiliates
for service as members of the Board by providing them
with an ownership interest in the Common Stock of the Company. The Company
intends that the Plan will benefit the Company and its stockholders by allowing
Non-Employee Directors to have a personal financial stake in the Company through
an ownership interest in the Common Stock and will closely associate the
interests of Non-Employee Directors with that of the Company's
stockholders.

      

      2.           Defined Terms. Unless
the context clearly indicates otherwise, the following terms shall have the
following meanings:

      

      "Board" means the Board of Directors of
the Company.

      

      “Change in Control” means “change of
control” or “change in effective control” of the Company, or “change in the
ownership of a substantial portion of the assets” of the Company as described or
defined in Section 409A of the Code and applicable regulations (without
giving effect to any elective provisions that may be available under such
definition).

      

      “Code” means the Internal Revenue Code
of 1986, as amended. Reference to a specific Section of the Code or regulation
thereunder shall include such Section or regulation, any valid regulation
promulgated under such Section, and any comparable provision of any future law,
legislation or regulation amending, supplementing or superseding such Section or
regulation.

      

      

      "Company" means Micron Technology,
Inc.

      

      "Committee" has the meaning assigned
such term in Section 3.

      

      "Common Stock" means the common stock,
par value $0.10 per share, of the Company.

      

      "Deferral Period" has the meaning set
forth in Section 6(e) of the Plan.

      

      "Deferred Stock Rights" means the right
to receive shares of Common Stock upon Separation from Services, as described in
Section 6(e) of the Plan.

      

      "Dividend" has the meaning set forth in
Section 6(e) of the Plan.

      

      "Election Form" means a form approved
by the Committee pursuant to which a Non-Employee Director elects a form of
payment of his or her Retainer, as provided in Section 6(a).

      

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

      

        
          
            
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      "Fair Market Value," means, as of any
date, the value of Common Stock determined as follows:

      

       (a)
If the Common Stock is listed on any established stock exchange, including
without limitation the New York Stock Exchange (“NYSE”), or a national market
system, the Fair Market Value of a Share of Common Stock shall be the average
closing price for such stock (or the closing bid, if no sales were reported) as
quoted on such exchange or system (or the exchange with the greatest volume of
trading in Common Stock) for the last market trading day prior to the day of
determination, as reported by Bloomberg L.P. or such other source as the
Administrator deems reliable; or

      

      (b) If
the Common Stock is quoted on the over-the-counter market or is regularly quoted
by a recognized securities dealer, but selling prices are not reported, the Fair
Market Value of a Share of Common Stock shall be the mean between the high bid
and low asked prices for the Common Stock on the last market trading day prior
to the day of determination, as reported by Bloomberg L.P. or such other source
as the Administrator deems reliable; or

      

      (c) in
the absence of an established market for the Common Stock, the Fair Market Value
shall be determined by such other method as the Committee determines in good
faith to be reasonable and in compliance with Code Section 409A..

      

      

      "Non-Employee Director" means a
director of the Company who is not an employee of the Company or of any of its
subsidiaries or affiliates.

      

      "Participant" means any Non-Employee
Director who is participating in the Plan.

      

      "Plan" means the Micron Technology,
Inc. 1998 Non-Employee Director Stock Incentive Plan, as amended from time to
time.

      

      "Plan Administrator" means the person
or persons designated by the Committee to administer the Plan in accordance with
Section 3 of the Plan.  If no such administrator is designated, the
Plan Administrator shall be the Committee or the Board, as the case may be,
administering the Plan pursuant to Section 3.

      

      "Plan Year" means the twelve-month
period ending on December 31 of each year which, for purposes of the Plan, is
the period for which Retainer is earned.

      

      "Quarterly Grant Date" has the meaning
set forth in Section 6(c) of the Plan.

      

      "Quarterly Service Period" has the
meaning set forth in Section 6(c) of the Plan.

      

      "Retainer" means the compensation
payable by the Company to a Non-Employee Director for service as a director
(and, if applicable, as the member of a committee of the Board) of the Company,
as such amount may be changed from time to time.

      

      "Rule 16b-3" means Rule 16b-3, as
amended from time to time, of the Securities and Exchange Commission as
promulgated under the Exchange Act.

      

      "Securities Act" means the Securities
Act of 1933, as amended.

      

        
          
            
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      “Separation
from Service” means the good faith and complete termination of the Non-Employee
Director’s services to the Company without anticipation of the renewal of
services.

      

      "Shares" means shares of Common
Stock.

      

      "Stock Equivalent Amount" means the
portion (in 25% increments) of a Non- Employee Director's Retainer for a Plan
Year that he or she has elected to receive in the form of Common Stock or
Deferred Stock Rights.

      

      "Unforeseeable Emergency" has the
meaning set forth in Section 6(f) of the Plan.

      

      3.           Administration. The
Plan shall be administered by the Compensation Committee of the Board of
Directors (the "Committee"). Subject to the provisions of the Plan, the
Committee shall be authorized to interpret the Plan, to establish, amend and
rescind any rules and regulations relating to the Plan, and to make all other
determinations necessary or advisable for the administration of the Plan;
provided, however, that the Committee shall have no discretion with respect to
the eligibility or selection of Non-Employee Directors to receive awards under
the Plan, the number of Shares subject to any such awards or the time at which
any such awards are to be granted. The Committee's interpretation of the Plan,
and all actions taken and determinations made by the Committee pursuant to the
powers vested in it hereunder, shall be conclusive and binding upon all parties
concerned including the Company, its stockholders and persons granted awards
under the Plan. The Committee may appoint a plan administrator to carry out the
ministerial functions of the Plan, but the administrator shall have no other
authority or powers of the Committee. Notwithstanding the foregoing, the Board
shall exercise any and all rights, duties and powers of the Committee under the
Plan to the extent required by the applicable exemptive conditions of Rule
16b-3, as determined by the Board its sole discretion.

      

      4.           Shares Subject to
Plan. The Shares issued under the Plan shall not exceed in the aggregate
250,000 shares of Common Stock. Such Shares may be authorized and unissued
shares or treasury shares.

      

      5.           Participants. All
active Non-Employee Directors shall be eligible to participate in the
Plan.

      

      6.           Form of Payment of
Retainer.

      

      (a)           Annual and Initial
Elections. On or before November 30 of each year (December 31, 1998 in
the case of the first Plan Year), each Non-Employee Director shall file with the
Plan Administrator an election form prescribed by the Plan Administrator (the
"Election Form"), in which such Non-Employee Director shall indicate his or her
preference to receive some or all of his or her Retainer for the following Plan
Year in the form of (i) cash, (ii) Common Stock, or (iii) Deferred Stock Rights.
Such elections shall be made in increments of 25% of the Retainer. Individuals
who are nominated to become Non-Employee Directors may make such election no
later than 30 days after the date the Non-Employee Director first becomes
eligible to participate in the Plan.  If a Non-Employee Director fails
to timely file an Election Form for a Plan Year, then 100% of his or her
Retainer for such Plan Year will be paid in cash. If a Non-Employee Director
makes an election for any Plan Year and does not revoke such election before the
beginning of any subsequent Plan Year, such election shall remain in effect for
each such subsequent Plan Year and shall be irrevocable through the end of such
subsequent Plan Year.

      

        
          
            
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      (b)           Cash Payments. That
portion of the Retainer to be paid in cash will be paid monthly for services
rendered during the preceding month.

      

      (c)           Grant Dates and Formula for
Stock Grants. To the extent that a Non-Employee Director has elected to
receive some or all of his or her Retainer in the form of Common Stock and has
not elected to defer receipt of such shares pursuant to Section 6(e), shares of
Common Stock shall be automatically granted to such Non-Employee Director on
March 31, June 30, September 30 and December 31 of each Plan Year (each such
date is hereinafter referred to as a "Quarterly Grant Date"). The total number
of Shares included in each grant under this Section 6(c) shall be determined by
(i) dividing the Stock Equivalent Amount earned by the Non-Employee Director
during the three-month period immediately preceding the Quarterly Grant Date
(the "Quarterly Service Period") by the Fair Market Value per Share on the
Quarterly Grant Date, and (ii) and subtracting any Shares to be deferred
pursuant to Section 6(e). Fractions will be rounded to the next highest
Share.

      

      (d)           Separation from Service
During Quarterly Service Period. In the event of Separation from
ServiceSeparation from Service on the Board by any Participant during a
Quarterly Service Period, such Participant's award for the Quarterly Service
Period shall be determined in accordance with Sections 6(b) based upon the Stock
Equivalent Amount earned during such Quarterly Service Period through the date
of Separation from Service, provided, that the grant date shall be the date of
Separation from  Service unless the grant has been deferred pursuant
to Section 6(e).

      

      (e)           Deferred Stock
Rights.

      

      (i)           Election to Defer.
Each Participant will have the right to elect, in his or her Election Form
delivered to the Plan Administrator prior to the commencement of each Plan Year,
to defer until after the Participant's Separation from Service the grant of the
Shares that would otherwise be granted to the Participant during the next
ensuing Plan Year ("Deferred Stock Rights"). Pursuant to this Election Form, the
Participant will elect whether all of the deferred grant for the applicable Plan
Year will be (a) granted within 30 days after Separation from Service or (b)
granted in approximately equal annual installments of Shares over a period of
two to five years (as the Participant may elect) after the Separation from
Service, each such annual grant to be made within 30 days after the anniversary
of the Separation from Service. The deferral Election Form signed by the
Participant prior to the Plan Year will be irrevocable except in case of an
Unforeseeable Emergency (as defined in Section 6(f)).   No Shares
will be issued until the grant date(s) so deferred (the "Deferred Grant Date")
at which time the Company agrees to issue the Shares to the Participant. The
Participant will have no rights as a stockholder with respect to the Deferred
Stock Rights, and the Deferred Stock Rights will be unsecured.

      

      (ii)           Deferred Dividend
Account. If any cash dividends ("Dividends") are distributed to holders
of Common Stock during the period from the applicable Quarterly Grant Date until
the Deferred Grant Date (the "Deferral Period") but prior to the Participant's
Separation from Service, an amount equal to the cash value of such Dividends on
their distribution date, as such value is determined by the Committee, will be
credited to a deferred dividend account for the Participant as follows: the
account will be credited with the right to receive Shares having a Fair Market
Value as of the date of the Dividend equal to the cash value of the Dividend.
The Company will issue Shares equal to the cumulative total of rights to Shares
in such account within 30 days after the Participant's Separation from
Service.

      

        
          
            
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      If a Dividend is distributed to holders
of Common Stock after the Participant's Separation from Service but prior to the
issuance in full of the deferred Shares, an amount equal to the cash value of
such Dividends pertaining to any Shares still deferred shall be converted into
Shares equivalent in value to the Dividend (based on the Fair Market Value as of
the date of distribution of the Dividend) and such Shares will be issued to the
Participant within 30 days after the date of the distribution of the
Dividend.  No right or interest in the Deferred Stock Rights or in the
deferred dividend account shall be subject to liability for the debts, contracts
or engagements of the Participant or shall be subject to disposition by
transfer, alienation, anticipation, pledge, encumbrance, assignment or any other
means whether such disposition be voluntary or involuntary or by operation of
law by judgment, levy, attachment, garnishment or any other legal or equitable
proceedings (including bankruptcy), and any attempted disposition thereof shall
be null and void and of no effect; provided, however, that nothing in this
Section 6(e) shall prevent transfers by will or by the applicable laws of
descent and distribution. The Committee will have the right to adopt other
regulations and procedures to govern deferral of grants of Shares.

      

      (f)           Unforeseeable
Emergency.  For purposes of this Plan, an “unforeseeable emergency”
means a severe financial hardship to the Participant resulting from illness or
accident of the Participant, the Participant's spouse, or a dependent (as
defined in Section 152(a) of the Code) of the Participant, loss of the
Participant's property due to casualty, or other similar extraordinary and
unforeseeable circumstances arising as a result of events beyond the control of
the Participant.  The amounts distributable because of an
unforeseeable emergency cannot exceed the amounts necessary to satisfy such
emergency plus amounts necessary to pay taxes reasonably anticipated as a result
of the distribution, after taking into account the extent to which such
emergency is or may be relieved through reimbursement or compensation by
insurance or otherwise or by liquidation of the Participant's assets (to the
extent the liquidation of such assets would not itself cause severe financial
hardship).  Notwithstanding any provision in the Plan to the contrary,
any payment made pursuant to this Section 6(g) shall comply with Section
409A(a)(2)(A)(vi) of the Code and the regulations (or similar guidance)
promulgated thereunder (or any successor provisions).

      

      (g)          No
Participant shall have the right to accelerate any amounts payable under this
Plan.  The Committee may accelerate amounts payable under this Plan
only if there is an exception to the prohibition on acceleration of payments as
set forth in Treasury Regulation Section 1.409A-3(j)(4).

      

      (h)          Notwithstanding
anything herein to the contrary, to the extent that any amount or benefit that
would constitute non-exempt “deferred compensation” for purposes of
Section 409A of the Code would otherwise be payable or distributable to a
Participant by reason of the occurrence of a change in control or similar
corporate event or transaction involving the Company, or a Participant’s
disability or separation from service, such amount or benefit will not be
payable or distributable by reason of such circumstance unless (i) the
circumstances giving rise to such transaction, disability or separation from
service meet any description or definition of “change in control event”,
“disability” or “separation from service”, as the case may be, in
Section 409A of the Code and applicable regulations (without giving effect
to any elective provisions that may be available under such definition), or
(ii) the payment or distribution of such amount or benefit would be exempt
from the application of Section 409A of the Code by reason of the
short-term deferral exemption or otherwise.  If this provision
prevents the payment or distribution of any amount or benefit, such payment or
distribution shall be made on the next earliest payment or distribution date or
event specified in this Plan that is permissible under Section
409A.

      

        
          
            
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      7.           Prorated Grants. If
on any Quarterly Grant Date, shares of Common Stock are not available under the
Plan to grant to Non-Employee Directors the full amount of a grant contemplated
by the Plan, then each such director shall receive an award equal to the number
of shares of Common Stock then available under the Plan divided by the number of
Non-Employee Directors entitled to a grant of shares on such date. Fractional
shares shall be ignored and not granted.  Any shortfall resulting from
such proration shall be paid in the form of cash.

      

      8.           Withholding. Whenever
the Company issues Shares under the Plan, the Company shall have the right to
withhold from sums due the recipient, or to require the recipient to remit to
the Company, any amount sufficient to satisfy any federal, state and/or local
withholding tax requirements prior to the delivery of any certificate for such
Shares.

      

      9.           Adjustments.

      

      (a)           Changes in
Capitalization.

      

      (i)           The number of Common Stock shares
subject to a stock right shall be proportionally adjusted to reflect a stock
split (including a reverse stock split) or stock dividend, provided the only
effect of the stock split or stock dividend is to increase (or decrease) on a
pro rata basis the number of shares owned by each shareholder of the class of
stock subject to the stock right.

      

      (ii)           Discretionary
Adjustments.  Upon the occurrence or in anticipation of any
corporate event or transaction involving the Company (including, without
limitation, any merger, reorganization, recapitalization or combination or
exchange of shares, or any transaction described in Section 9(a)(i)), the
Committee may, in its sole discretion, provide (i) that awards hereunder will be
settled in cash rather than Common Stock, (ii) that awards hereunder will become
immediately vested and exercisable and will expire after a designated period of
time to the extent not then exercised, (iii) that awards hereunder will be
assumed by another party to a transaction or otherwise be equitably converted or
substituted in connection with such transaction, or (iv) any combination of the
foregoing.  The Committee’s determination need not be uniform and may
be different for different Non-Employee Directors whether or not such
Non-Employee Directors are similarly situated.

      

      (iii)           General.  Any
discretionary adjustments made pursuant to this Section 9(a) shall be subject to
the provisions of Section 10.

      

      (b)           In
the event of a Change in Control,all Deferred Stock Rights shall become
immediately due and payable.

      

      (c)           The
number of Shares finally granted under this Plan shall always be rounded to the
next highest whole Share.

      

      (d)           Any
decision of the Committee pursuant to the terms of this Section 9 shall be
final, binding and conclusive upon the Participants, the Company and all other
interested parties; provided, however, that to the extent required by the
applicable exemptive conditions of Rule 16b-3, any such decision shall be
subject to approval by the Board.

      

      10.           Amendment.

      

        
          
            
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      (i) In General.  The
Committee may terminate or suspend the Plan at any time, without stockholder
approval. The Committee may amend the Plan at any time and for any reason
without stockholder approval; provided, however, that the Committee may
condition any amendment on the approval of stockholders of the Company if such
approval is necessary or deemed advisable with respect to tax, securities or
other applicable laws, policies or regulations. No termination, modification or
amendment of the Plan may, without the consent of a Participant, adversely
affect a Participant's rights under an award granted prior thereto.

      

      (ii)
Compliance
Amendments.  Notwithstanding anything in the Plan, Election
Form or other applicable agreement to the contrary, the Committee may amend the
Plan, Election Form or other applicable agreement, to take effect retroactively
or otherwise, as deemed necessary or advisable for the purpose of conforming the
Plan, Election Form or other applicable agreement to any present or future law
relating to plans of this or similar nature (including, but not limited to,
Section 409A of the Code), and to the administrative regulations and rulings
promulgated thereunder.  By participating in this Plan, a Non-Employee
Director agrees to any amendment made pursuant to this Section to any
compensation granted under the Plan without further consideration or
action.

      

      

      11.           Indemnification. Each
person who is or has been a member of the Committee or who otherwise
participates in the administration or operation of this Plan shall be
indemnified by the Company against, and held harmless from, any loss, cost,
liability or expense that may be imposed upon or incurred by him or her in
connection with or resulting from any claim, action, suit or proceeding in which
such person may be involved by reason of any action taken or failure to act
under the Plan and shall be fully reimbursed by the Company for any and all
amounts paid by such person in satisfaction of judgment against him or her in
any such action, suit or proceeding, provided he or she will give the Company an
opportunity, by written notice to the Committee, to defend the same at the
Company's own expense before he or she undertakes to defend it on his or her own
behalf. This right of indemnification shall not be exclusive of any other rights
of indemnification.

      

      The Committee and the Board may rely
upon any information furnished by the Company, its public accountants and other
experts. No individual will have personal liability by reason of anything done
or omitted to be done by the Company, the Committee or the Board in connection
with the Plan.

      

      12.           Duration of the Plan.
The Plan shall remain in effect until ten years from the Effective Date, unless
terminated earlier by the Committee.

      

      13.           Expenses of the Plan.
The expenses of administering the Plan shall be borne by the
Company.

      

      14.           Effective Date. The
Plan was originally adopted by the Board on November 23, 1998, and became
effective upon the approval thereof by the stockholders of the Company on
January 14, 1999 (the "Effective Date").

       

      
        
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-exhibit10_7.htm

    Exhibit
10.7

    

    MICRON
TECHNOLOGY, INC.

    NONSTATUTORY
STOCK OPTION PLAN

    

    

    1.           Purposes
of the Plan.  The purposes of this Plan are:

    

    
      	
              ·  

            	
              to
      attract and retain the best available personnel for positions of
      substantial responsibility,

            

    

    

    
      	
              ·  

            	
              to
      provide additional incentive to Employees and Consultants,
    and

            

    

    

    
      	
              ·  

            	
              to
      promote the success of the Company’s
business.

            

    

    

    Nonstatutory
stock options may be granted under the Plan.

    

    2.           Definitions.  As
used herein, the following definitions shall apply:

    

    (a)           “Administrator” means
the Board or any of its Committees as shall be administering the Plan, in
accordance with Section 4 of the Plan.

    

    (b)           “Affiliate”  means
(i) any subsidiary or parent company of the Company, or (ii) an entity that
directly or through one or more intermediaries controls, is controlled by or is
under common control with, the Company, as determined by the
Committee.

    

    (c)           “Applicable Laws”
means the legal requirements relating to the administration of stock option
plans and the issuance of stock and stock options under federal securities laws,
Delaware corporate and securities laws, the Code, and the applicable laws of any
foreign country or jurisdiction where options will be or are being granted under
the Plan.

    

    (d)           “Board” means the
Board of Directors of the Company.

    

    (e)           “Change in Control”
means the acquisition by any person or entity, directly, indirectly or
beneficially, acting alone or in concert, of more than thirty-five percent (35%)
of the Common Stock of the Company outstanding at any time.

    

    (f)           “Code” means the
Internal Revenue Code of 1986, as amended.  Reference to a specific
Section of the Code or regulation thereunder shall include such Section or
regulation, any valid regulation promulgated under such Section, and any
comparable provision of any future law, legislation or regulation amending,
supplementing or superseding such Section or regulation.

    

    (g)           “Committee” means a
Committee appointed by the Board in accordance with Section 4 of the
Plan.

    

    (h)           “Common Stock” means
the Common Stock of the Company.

    
      
        
          
            

             

            9/22/2003
change #2 (n)

          

           

        

        
           

          
            

          

        

        
           

        

      

    (i)           “Company” means Micron
Technology, Inc., a Delaware corporation.

    

    (j)           “Consultant” means any
person, including an advisor, engaged by the Company or a parent, subsidiary or
Affiliate to render services.  The term “Consultant” shall not include
any person who is also an Officer or Director of the Company.

    

    (k)           “Continuous Status as an
Employee or Consultant” means that the employment or consulting
relationship with the Company, any parent, subsidiary, or Affiliate, is not
interrupted or terminated.  Continuous Status as an Employee or
Consultant shall not be considered interrupted in the case of (i) any leave of
absence approved by the Company, (ii) transfers between locations of the Company
or between the Company, its Parent, any Subsidiary, or any successor or
(iii) change in status from either an Employee to a Consultant or a
Consultant to an Employee.  A leave of absence approved by the Company
shall include sick leave, military leave, or any other personal leave approved
by an authorized representative of the Company.

    

    (l)           “Director” means a
member of the Board.

    

    (m)           “Disability” means
total and permanent disability as defined in Section 22(e)(3) of the
Code.  Notwithstanding the foregoing, for any Options that constitute
a nonqualified deferred compensation plan within the meaning of Section 409A(d)
of the Code, “Disability” has the meaning given such term in Section 409A of the
Code.

    

    (n)           “Employee” means any
person, except Officers and Directors, employed by the Company or any parent,
subsidiary or Affiliate of the Company.

    

    (o)           “Fair Market Value” of
the Stock, on any date, means: (i) if the Stock is listed or traded on any
Exchange, the average closing price for such Stock (or the closing bid, if no
sales were reported) as quoted on such Exchange (or, if more than one Exchange,
the Exchange with the greatest volume of trading in the Stock) for such date, or
if no sales or bids were reported for such date, on the last market trading day
prior to the day of determination, as reported by Market Sweep, a service from
Interactive Data Services, Inc., or or such other source as the Committee deems
reliable; (ii) if the Stock is quoted on the over-the-counter market or is
regularly quoted by a recognized securities dealer, but selling prices are not
reported, the Fair Market Value of the Stock shall be the mean between the high
bid and low asked prices for the Stock on such date, or if no sales or bids were
reported for such date, on the last market trading day prior to the day of
determination, as reported by Market Sweep, a service from
Interactive Data Services, Inc., or such other source as the Committee deems
reliable, or (iii) in the absence of an established market for the Stock, the
Fair Market Value shall be determined by such other method as the Committee
determines in good faith to be reasonable and in compliance with Code Section
409A.

    

    (p)           “Notice of Grant”
means a written notice evidencing certain terms and conditions of an individual
Option grant.  The Notice of Grant is subject to the terms and
conditions of the Option Agreement.

    
      
        
          
            

             

            9/22/2003
change #2 (n)

          

           

        

        
          2

          
            

          

        

        
           

        

      

    (q)           “Officer” means a
person who is an officer of the Company within the meaning of Section 16 of the
Securities Exchange Act of 1934, as amended, and the rules and regulations
promulgated thereunder.

    

    (r)           “Option” means a
nonstatutory stock option granted pursuant to the Plan.  Such option
is not intended to qualify as an incentive stock option within the meaning of
Section 422 of the Code and the regulations promulgated thereunder.

    

    (s)           “Option Agreement”
means a written agreement between the Company and an Optionee evidencing the
terms and conditions of an individual Option grant.  The Option
Agreement is subject to the terms and conditions of the Plan.

    

    (t)           “Option Exchange
Program” means a program whereby outstanding options are surrendered in
exchange for options with a lower exercise price.

    

    (u)           “Optioned Stock” means
the Common Stock subject to an Option.

    

    (v)           “Optionee” means an
Employee or Consultant who holds an outstanding Option.

    

    (w)           “Plan” means this
Nonstatutory Stock Option Plan.

    

    (x)           “Share” means a share
of the Common Stock, as adjusted in accordance with Section 12 of the
Plan.

    

    3.           Stock Subject to the
Plan.  Subject to the provisions of Section 12 of the Plan, the
maximum aggregate number of Shares, which may be optioned and sold under the
Plan, is 59,603,088.  The Shares may be authorized, but, unissued, or
reacquired Common Stock.

    

    If an
Option expires or becomes unexercisable without having been exercised in full,
or is surrendered pursuant to an Option Exchange Program, the unpurchased Shares
which were subject thereto shall become available for future grant or sale under
the Plan (unless the Plan has terminated).

    

    4.           Administration of the
Plan.

    

    (a)           Procedure.  The
Plan shall be administered by (A) the Board or (B) a committee designated by the
Board, which committee shall be constituted to satisfy Applicable
Laws.  Once appointed, such Board may increase the size of the
Committee and appoint additional members, remove members (with or without cause)
and substitute new members, fill vacancies (however caused), and remove all
members of the Committee and thereafter directly administer the Plan, all to the
extent permitted by Applicable Laws.

    

    (b)           Powers of the
Administrator.  Subject to the provisions of the Plan, and in
the case of a Committee, subject to the specific duties delegated by the Board
to such Committee, the Administrator shall have the authority, in its
discretion:

     

    
      
        
          
            

             

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    (i)           to
determine the Fair Market Value of the Common Stock;

    

    (ii)           to
select the Consultants and Employees to whom Options may be

    granted
hereunder;

    

    (iii)           to
determine whether and to what extent Options are granted hereunder;

    

    (iv)           to
determine the number of shares of Common Stock to be covered by each Option
granted hereunder;

    

    (v)           to
approve forms of agreement for use under the Plan;

    

    (vi)           to
determine the terms and conditions, not inconsistent with the terms of the Plan,
of any award granted hereunder.  Such terms and conditions include,
but are not limited to, the exercise price, the time or times when Options may
be exercised (which may be based on performance criteria), any vesting
acceleration or waiver of forfeiture restrictions, and any restriction or
limitation regarding any Option or the shares of Common Stock relating thereto,
based in each case on such factors as the Administrator, in its sole discretion,
shall determine;

    

    (vii)           to
reduce the exercise price of any Option to the then current Fair Market Value if
the Fair Market Value of the Common Stock covered by such Option shall have
declined since the date the Option was granted;

    

    (viii)                      to
construe and interpret the terms of the Plan and awards granted pursuant to the
Plan;

    

    (ix)           to
prescribe, amend, and rescind rules and regulations relating to the Plan,
including rules and regulations relating to sub-plans established for the
purpose of qualifying for preferred tax treatment under foreign tax
laws;

    

    (x)           to
modify or amend each Option (subject to Section 14(b) of the Plan), including
the discretionary authority to extend the post-termination exercisability period
of Options longer than is otherwise provided for in the Plan;

    

    (xi)           to
authorize any person to execute on behalf of the Company any instrument required
to effect the grant of an Option previously granted by the
Administrator;

    

    (xii)           to
institute and Option Exchange Program;

    

    (xiii)                      to
allow Optionees to satisfy withholding tax obligations by electing to have the
Company withhold from the Shares to be issued upon exercise of an Option that
number of Shares having a Fair Market Value equal to the amount required to be
withheld; and

    

    (xiv)                      to
make all other determinations deemed necessary or advisable for administering
the Plan.

     

    
      
        
          
            

             

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    (c)           Effect of Administrator’s
Decision.  The Administrator’s decisions, determinations, and
interpretations shall be final and binding on all Optionees and any other
holders of Options.

    

    5.           Eligibility.  Options
may be granted to Employees and Consultants.  Employees and
Consultants who are service providers to an Affiliate may be granted Options
under this Plan only if the Affiliate qualifies as an “eligible issuer of
service recipient stock” within the meaning of §1.409A-1(b)(5)(iii)(E) of the
final regulations under Code Section 409A.

    

     

    6.           Limitations.  Neither
the Plan nor any Option shall confer upon an Optionee any right with respect to
continuing the Optionee’s employment or consulting relationship with the
Company, nor shall they interfere in any way with the Optionee’s right or the
Company’s right to terminate such employment or consulting relationship at any
time, with or without cause.

     

    

    7.           Term of
Plan.  The Plan shall become effective upon its adoption by the
Board.  It shall continue in effect until terminated under Section 14
of the Plan.

    

    8.           Term of
Option.  The term of each Option shall be stated in the Notice
of Grant.

    

    9.           Option Exercise Price and
Consideration.

    

    (a)           Exercise
Price.  The per share exercise price for the Shares to be
issued pursuant to exercise of an Option shall be determined by the
Administrator, but shall not be less than the Fair Market Value per share on the
date of grant of the Option.

    

    (b)           Waiting Period and Exercise
Dates.  At the time an Option is granted, the Administrator
shall fix the period within which the Option may be exercised and shall
determine any conditions which must be satisfied before the Option may be
exercised.  In doing so, the Administrator may specify that an Option
may not be exercised until either the completion of a service period or the
achievement of performance criteria with respect to the Company or the
Optionee.

    

    (c)           Form of
Consideration.  The Administrator shall determine the
acceptable form of consideration for exercising an Option, including the method
of payment.  Such consideration may consist entirely of:

    

    (i)           cash;

    

    (ii)           check;

    

    (iii)           promissory
note;

    

    (iv)           other
Shares which have a Fair Market Value on the date of surrender equal to the
aggregate exercise price of the Shares as to which said Option shall be
exercised;

    
      
        
          
            

             

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    (v)           delivery
of a properly executed exercise notice together with such other documentation as
the Administrator and the broker, if applicable, shall require to effect an
exercise of the Option and delivery to the Company of the sale or loan proceeds
required to pay the exercise price;

    

    (vi)           a
reduction in the amount of any Company liability to the Optionee, other than any
liability attributable to the Optionee’s participation in any Company-sponsored
deferred compensation program or arrangement;

    

    (vii)           any
combination of the foregoing methods of payment; or

    

    (viii)                      such
other consideration and method of payment for the issuance of Shares to the
extent permitted by Applicable Laws.

    

    
      
        
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    10.           Exercise of
Option.

    

    (a)           Procedure for Exercise;
Rights as a Shareholder.  Any Option granted thereunder shall
be exercisable according to the terms of the Plan and at such times and under
such conditions as determined by the Administrator and set forth in the Option
Agreement.

    

    An Option
may not be exercised for a fraction of a Share.

    

    An Option
shall be deemed exercised when the Company receives:  (i) written
notice of exercise (in accordance with the Option Agreement) from the person
entitled to exercise the Option, and (ii) full payment for the Shares with
respect to which the Option is exercised.  Full payment may consist of
any consideration and method of payment authorized by the Administrator and
permitted by the Option Agreement and the Plan.  Shares issued upon
exercise of an Option shall be issued in the name of the Optionee or, if
requested by the Optionee, in the name of the Optionee and his or her
spouse.  Until the Shares are issued (as evidenced by the appropriate
entry on the books of the Company or of a duly authorized transfer agent of the
Company), no right to vote or receive dividends or any other rights as a
shareholder shall exist with respect to the Optioned Stock, notwithstanding the
exercise of the Option.  The Company shall issue (or cause to be
issued) such Shares, promptly after the Option is exercised.  No
adjustment will be made for a dividend or other right for which the record date
is prior to the date the Shares are issued, except as provided in Section 12 of
the Plan.

    

    Exercising
an Option in any manner shall decrease the number of Shares thereafter
available, both for purposes of the Plan and for sale under the Option, by the
number of Shares as to which the Option is exercised.

    

    (b)           Termination of Employment or
Consulting Relationship.  Upon termination of an Optionee’s
Continuous Status as an Employee or Consultant, other than upon the Optionee’s
death or Disability, the Optionee may exercise his or her Option, but only
within such period of time as is specified in the Notice of Grant, and only to
the extent that the Optionee was entitled to exercise it as the date of
termination (but in no event later than the expiration of the term of such
Option as set forth in the Notice of Grant).  In the absence of a
specified time in the Notice of Grant, the Option shall remain exercisable for
30 days following the Optionee’s termination of Continuous Status as an Employee
or Consultant.  If, at the date of termination, the Optionee is not
entitled to exercise his or her entire Option, the Shares covered by the
unexercisable portion of the Option shall revert to the Plan.  If,
after termination, the Optionee does not exercise his or her Option within the
time specified herein, the Option shall terminate, and the Shares covered by
such Option shall revert to the Plan.

    

    (c)           Disability of
Optionee.  In the event that an Optionee’s Continuous Status as
an Employee or Consultant terminates as a result of the Optionee’s Disability,
the Optionee may exercise his or her Option at any time within twelve (12)
months from the date of such termination, but only to the extent that the
Optionee was entitled to exercise it at the date of such termination (but in no
event later than the expiration of the term of such Option as set forth in the
Notice of Grant).  If, at the date of termination, the Optionee does
not exercise his or her entire Option, the Shares covered by the unexercisable
portion of the Option shall revert to the Plan.  If, after
termination, the Optionee does not exercise
his or her option within the time specified herein, the Option shall terminate,
and the Shares covered by such Option shall revert to the Plan.

    
      
        
          
            

             

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    (d)           Death of
Optionee.  In the event of the death of an Optionee, the Option
may be exercised at any time within twelve (12) months following the date of
death (but in no event later than the expiration of the term of such Option as
set forth in the Notice of Grant), by the Optionee’s estate or by a person who
acquired the right to exercise the Option by bequest or inheritance, but only to
the extent that the Optionee was entitled to exercise the Option at the date of
death.  If, at any time of death, the Optionee was not entitled to
exercise his or her entire Option, the Shares covered by the unexercisable
portion of the Option shall immediately revert to the Plan.  If, after
death, the Optionee’s estate or a person who acquired the right to exercise the
Option by bequest or inheritance does not exercise the Option within the time
specified herein, the Option shall terminate, and the Shares covered by such
Option shall revert to the Plan.

    

    (e)           Suspension.   Any
Optionee who is also a participant in the Retirement at Micron (“RAM”) Section
401(k) Plan and who requests and receives a hardship distribution from the RAM
Plan, is prohibited from making, and must suspend, his or her employee elective
contributions and employee contributions including, without limitation on the
foregoing, the exercise of any Option granted from the date of receipt by that
employee of the RAM hardship distribution.

    

    11.           Non-Transferability of
Options.  Unless otherwise specified by the Administrator in
the Option Agreement, an Option may not be sold, pledged, assigned,
hypothecated, transferred, or disposed of in any manner other than by will or by
laws of descent or distribution and may be exercised, during the lifetime of the
Optionee, only by the Optionee.

    

    12.           Adjustments Upon Changes in
Capitalization, Dissolution, Merger, or Asset Sale.

    

    (a)           Changes in
Capitalization.

    

    Subject
to any required action by the shareholders of the Company, the number of shares
of Common Stock covered by each outstanding Option, and the number of issued
shares of Common Stock which have been authorized for issuance under the Plan
but as to which no Options have yet been granted or which have been returned to
the Plan upon cancellation or expiration of an Option, as well as the price per
share of Common Stock covered by each such outstanding Option, shall be
proportionately adjusted for any increase or decrease in the number of issued
shares of Common Stock resulting from a stock split, reverse stock split, stock
dividend, combination or reclassification of the Common Stock or any other
increase or decrease in the number of shares of Common Stock effected without
receipt of consideration by the Company; provided, however, that conversion of
any convertible securities of the Company shall not be deemed to have been
effected without receipt of consideration.  Such adjustment shall be
made by the Board, whose determination in that respect shall be final, binding,
and conclusive.  Without limiting the foregoing, in the event of a
subdivision of the outstanding Stock (stock-split), a declaration of a dividend
payable in Shares, or a combination or consolidation of the outstanding Stock
into a lesser number of Shares, the authorization limit under Section 3 shall
automatically be adjusted proportionately, and the Shares then subject to each
Award shall automatically be adjusted proportionately without any change in the
aggregate purchase price therefor.  To the extent that any adjustments
made pursuant to this Section 12 cause Incentive Stock Options to cease to
qualify as Incentive Stock Options, such Options shall be deemed to be
Nonstatutory Stock Options.

    
      
        
          
            

             

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    (b)           Dissolution or
Liquidation.  In the event of the proposed dissolution or
liquidation of the Company, to the extent that an Option has not been previously
exercised, it will terminate immediately prior to the consummation of such
proposed action.  The Board may, in the exercise of its sole
discretion in such instances, declare that any Option shall terminate as of a
date fixed by the Board and give each Optionee the right to exercise his or her
Option as to all or any part of the Optioned stock, including Shares as to which
the Option would not otherwise be exercisable.

    

    (c)           Merger or Asset
Sale.

    

    Upon the
occurrence or in anticipation of any corporate event or transaction involving
the Company (including, without limitation, any merger, reorganization,
recapitalization or combination or exchange of shares or any transaction
described in Section 12(a)), the Administrator may, in its sole discretion,
provide (i) that Options will be settled in cash rather than Common Stock, (ii)
that Options will become immediately vested and exercisable and will expire
after a designated period of time to the extent not then exercised, (iii) that
Options will be assumed by another party to a transaction or otherwise be
equitably converted or substituted in connection with such transaction, (iv)
that outstanding Options may be settled by payment in cash or cash equivalents
equal to the excess of the Fair Market Value of the underlying Common Stock, as
of a specified date associated with the transaction, over the exercise price of
the Option, or (v) any combination of the foregoing.  The
Administrator’s determination need not be uniform and may be different for
different Optionees whether or not such Optionees are similarly
situated.

    

    

    

    (d)           Change in
Control.   In the event of a Change in Control, the
unexercised portion of the Option shall become immediately
exercisable.

    

    (e)           General.  Any
discretionary adjustments made pursuant to this Section 12 shall be subject to
the provisions of Section 14.

    

    

    13.           Date of
Grant.  The date of grant of an Option shall be, for all
purposes, the date on which the Administrator makes the determination granting
such Option, or such other later date as is determined by the
Administrator.  Notice of the determination shall be provided to each
Optionee within a reasonable time after the date of such grant.

    

    14.           Amendment and Termination of
the Plan.

    

    (a)           Amendment and
Termination.  Except as provided herein, the Board may at any
time amend, alter, suspend, or terminate the Plan without shareholder approval;
provided, however, that the Board may condition any amendment or modification on
the approval of shareholders of the Company if such approval is necessary or
deemed advisable with respect to tax, securities or other applicable laws,
policies or regulations.  No termination can affect options previously
granted, nor may an amendment make any change in any option theretofore granted
which adversely affects the rights of any Optionee, nor may an amendment be made
without prior approval of the shareholders of the Company if such amendment
would:

    
      
        
          
            

             

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    (i) increase
the number of shares that may be issued under the Plan;

    

    (ii) change
the designation of the employees (or class of employees) eligible for
participation in the Plan; or

    

    (iii) materially
increase the benefits which may accrue to participants under the
Plan.

    

    

    (b)           Effect of Amendment or
Termination.  No amendment, alteration, suspension, or
termination of the Plan shall impair the rights of any Optionee, unless mutually
agreed otherwise between the Optionee and the Administrator, which agreement
must be in writing and signed by the Optionee and the Company.

    

    (c)           Compliance
Amendments.  Notwithstanding anything in the Plan or in any
Notice of Grant, Option Agreement or other applicable agreement to the contrary,
the Committee may amend the Plan or any Notice of Grant, Option Agreement or
other applicable agreement, to take effect retroactively or otherwise, as deemed
necessary or advisable for the purpose of conforming the Plan, Notice of Grant,
Option Agreement or other applicable agreement to any present or future law
relating to plans of this or similar nature (including, but not limited to,
Section 409A of the Code), and to the administrative regulations and rulings
promulgated thereunder.  By accepting an Option under this Plan, a
Optionee agrees to any amendment made pursuant to this Section to any Option
granted under the Plan without further consideration or action.

    

    15.           Conditions Upon Issuance of
Shares.

    

    (a)           Legal
Compliance.  Shares shall not be issued pursuant to the
exercise of an Option unless the exercise of such Option and the issuance and
delivery of such Shares shall comply with all Applicable Laws and the
requirements of any stock exchange or quotation system upon which the Shares may
then be listed or quoted, and shall be further subject to the approval of
counsel for the Company with respect to such compliance.

    

    (b)           Investment
Representations.  As a condition to the exercise of an Option,
the Company may require the person exercising such Option to represent and
warrant at the time of any such exercise that the Shares are being purchased
only for investment and without any present intention to sell or distribute such
Shares if, in the opinion of counsel for the Company, such a representation is
required.

    
      
        
          
            

             

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    16.           Liability of
Company.  The inability of the Company to obtain authority from
any regulatory body having jurisdiction, which authority is deemed by the
Company’s counsel to be necessary to the lawful issuance and sale of any Shares
hereunder, shall relieve the Company of any liability in respect of the failure
to issue or sell such Shares as to which such requisite authority shall not have
been obtained.

    

    17.           Reservation of
Shares.  The Company, during the term of this Plan, will at all
times reserve and keep available such number of Shares as shall be sufficient to
satisfy the requirements of the Plan.

    

    18.           Restriction on
Repricing.  Without the prior approval of the shareholders of
the Company, the Administrator shall not reprice any Options issued under the
Plan through cancellation and regrant, by lowering the exercise price, or by any
other means.

    

    19.           Special Provisions Related
To Section 409A of the Code.

    

    (a)           Notwithstanding
anything in the Plan or in any Notice of Grant, Option Agreement or other
applicable agreement to the contrary, to the extent that any amount or benefit
that would constitute non-exempt “deferred compensation” for purposes of
Section 409A of the Code would otherwise be payable or distributable under
the Plan or any Notice of Grant, Option Agreement or other applicable agreement
by reason of the occurrence of a Change in Control, or the Optionee’s Disability
or separation from service, such amount or benefit will not be payable or
distributable to the Optionee by reason of such circumstance unless (i) the
circumstances giving rise to such Change in Control, Disability or separation
from service meet any description or definition of “change in control event”,
“disability” or “separation from service”, as the case may be, in
Section 409A of the Code and applicable regulations (without giving effect
to any elective provisions that may be available under such definition), or
(ii) the payment or distribution of such amount or benefit would be exempt
from the application of Section 409A of the Code by reason of the
short-term deferral exemption or otherwise.  This provision does not
prohibit the vesting of
any Option upon a Change in Control, Disability or separation from service,
however defined.  If this provision prevents the payment or
distribution of any amount or benefit, such payment or distribution shall be
made on the next earliest payment or distribution date or event specified in the
Notice of Grant, Option Agreement or other applicable agreement that is
permissible under Section 409A.

    

    (b)           If
any one or more Options granted under the Plan to a Optionee could qualify for
any separation pay exemption described in Treas. Reg. Section 1.409A-1(b)(9),
but such Options in the aggregate exceed the dollar limit permitted for the
separation pay exemptions, the Company (acting through the Committee or the Head
of Human Resources) shall determine which Options or portions thereof will be
subject to such exemptions.

    

    (c)           Notwithstanding
anything in the Plan or in any Notice of Grant, Option Agreement or other
applicable agreement to the contrary, if any amount or benefit that would
constitute non-exempt “deferred compensation” for purposes of Section 409A of
the Code would otherwise be payable or distributable under this Plan or in any
Notice of Grant, Option Agreement or other applicable agreement by reason of a
Optionee’s separation from service during a period in which the Optionee is a
Specified Employee (as defined below), then, subject to any permissible
acceleration of payment by the Committee under Treas. Reg. Section
1.409A-3(j)(4)(ii) (domestic relations order), (j)(4)(iii) (conflicts of
interest), or (j)(4)(vi) (payment of employment taxes):

    
      
        
          
            

             

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    (i) if
the payment or distribution is payable in a lump sum, the Optionee’s right to
receive payment or distribution of such non-exempt deferred compensation will be
delayed until the earlier of the Optionee’s death or the first day of the
seventh month following the Optionee’s separation from service; and

    

    (ii) if
the payment or distribution is payable over time, the amount of such non-exempt
deferred compensation that would otherwise be payable during the six-month
period immediately following the Optionee’s separation from service will be
accumulated and the Optionee’s right to receive payment or distribution of such
accumulated amount will be delayed until the earlier of the Optionee’s death or
the first day of the seventh month following the Optionee’s separation from
service, whereupon the accumulated amount will be paid or distributed to the
Optionee and the normal payment or distribution schedule for any remaining
payments or distributions will resume.

    

    For
purposes of this Plan, the term “Specified Employee” has the meaning given such
term in Code Section 409A and the final regulations thereunder, provided, however, that, as
permitted in such final regulations, the Company’s Specified Employees and its
application of the six-month delay rule of Code Section 409A(a)(2)(B)(i) shall
be determined in accordance with rules adopted by the Board or any committee of
the Board, which shall be applied consistently with respect to all nonqualified
deferred compensation arrangements of the Company, including this
Plan.

    

    
      
        

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