Document:

Exhibit 10.158

 

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

INTEL/MICRON
CONFIDENTIAL

 

BOISE SUPPLY AGREEMENT

 

This BOISE SUPPLY AGREEMENT (the “Agreement”), is
made and entered into as of this 6th day of January, 2006 (the “Effective Date”), by and between IM Flash Technologies, LLC,
a Delaware limited liability company (the “Joint Venture Company”)
and Micron Technology, Inc., a Delaware corporation (“Micron”).

 

RECITALS

 

A.                                   The
Joint Venture Company is engaged in the manufacture, assembly and test of NAND
Flash Memory Products (as defined hereinafter) and desires additional capacity
of NAND Flash Probed Wafers;

 

B.                                     Micron
possesses the ability to manufacture Probed Wafers for NAND Flash Memory
Products; and

 

C.                                     Micron
desires to provide and the Joint Venture Company desires Micron to supply
Probed Wafers to the Joint Venture Company upon the terms and subject to the
conditions set forth in this Agreement (each, a “Party”
and collectively, the “Parties”).

 

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 in Exhibit A.

 

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 of the Schedules
will apply only to the corresponding Section or subsection of this
Agreement, (3) each accounting term not otherwise defined in this
Agreement has the meaning commonly applied to it in accordance with GAAP, (4) words
in the singular include the plural and visa versa, (5) the term “including”
means “including without limitation,” and (6) 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”
will mean calendar days and all references to “quarter(ly)”, “month(ly)”
or “year(ly)” will mean Fiscal Quarter, Fiscal Month or Fiscal Year,
respectively, unless specifically identified otherwise.

 

 

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

 

ARTICLE 2

MICRON’S SUPPLY OBLIGATIONS

 

2.1                                 Micron’s
Supply Obligations.

 

(a)                                  General.
Micron will manufacture, sell and deliver to the Joint Venture Company Probed
Wafers in accordance with the Specifications, Performance Criteria and the
Manufacturing Plan as provided in the terms and conditions contained herein.

 

(b)                                 Micron
Manufacturing Location. Unless otherwise agreed to by the Parties, all
manufacture of Probed Wafers by Micron under this Agreement shall be performed
at Micron’s NAND product line in Boise, Idaho (“NAND Product
Line”).

 

2.2                                 Specifications.
The Joint Venture Company shall provide the Specifications for the Probed
Wafers supplied hereunder.

 

2.3                                 Performance
Criteria. The Joint Venture Company and Micron shall develop mutually
agreed Performance Criteria to evaluate Micron’s performance hereunder. The
initial Performance Criteria are set forth on Schedule 2.3 and the
Parties shall further define such Performance Criteria within sixty (60) days
of the Effective Date.

 

2.4                                 Micron’s
Manufacturing Process and Control. The Joint Venture Company and Micron
will review Micron’s control and process mechanisms, including but not limited
to such mechanisms that are designed to be utilized in meeting or exceeding all
parameters of the Specification and the Performance Criteria with respect to
the supply of Probed Wafers hereunder for the Joint Venture Company. The
Parties agree to work together in good faith to define mutually agreeable
control and process mechanisms relating to the following areas: [***].

 

2.5                                 [***].
In addition to the quarterly review and monthly report requirements set forth
in ARTICLES 3 and 5, Micron will promptly notify the Joint Venture
Company of all [***].

 

2.6                                 Equipment.
Micron shall utilize certain existing equipment to provide the manufacturing
capacity to support the initial Manufacturing Plan as defined in the LLC
Operating Agreement. Micron will procure additional manufacturing equipment as
specified in Schedule 2.6 (“Additional Equipment”), which is
required to meet the Manufacturing Plan hereunder.

 

2

 

2.7                                 Maskworks.
Masks required to manufacture the Probed Wafers will either be provided by the
Joint Venture Company or purchased by Micron hereunder. Such masks will only be
used to produce Probed Wafers for the Joint Venture Company. If the Joint
Venture Company does not provide the masks required hereunder, then the Joint
Venture Company shall provide to Micron in a timely manner all of the
information, in the form typically required, for Micron to purchase the
required masks. Masks will be repaired and replaced solely at mask operations
which have been approved by the Joint Venture Company, which approval shall not
be unreasonably withheld. While Micron will have possession of masks hereunder,
the Joint Venture Company or one of its Members will retain title to such masks
and of any underlying copyrights, maskworks, or other intellectual property.

 

2.8                                 Materials.
Unless otherwise provided by the Joint Venture Company, Micron shall be
responsible for providing all materials required for the manufacture and supply
the Probed Wafers hereunder. All such materials procured by Micron shall be
included in the pricing set forth on Schedule 4.6. Micron shall
endeavor to manage the entire supply chain hereunder, including equipment,
materials, systems, and subcontractors, if any, to create efficiency and
maximize the Performance Criteria. To the extent that the Joint Venture Company
desires to provide certain materials hereunder, the Parties shall work together
in good faith on the timing and manner of providing such materials so as it can
be accommodated within Micron’s business and manufacturing systems.

 

2.9                                 Traceability
and Data Retention. Micron and the Joint Venture Company shall review
Micron’s traceability systems in regards to manufacturing processing
information [***]. The Parties shall agree upon the data to be traced through
such system and which data shall be available with real-time access or
otherwise. Micron agrees to maintain such data for a minimum of [***]  from the date of manufacture of the Probed
Wafer lot. [***] to the same extent that such access is available to Micron,
subject to system limitations related to the exclusion of non-NAND data. The
Joint Venture Company may provide its customers with such data, subject to
any confidentiality requirements.

 

2.10                           Business
Continuity Plan. Micron and the Joint Venture Company will review Micron’s
Business Continuity Plan as it relates to Micron’s supply of Probed Wafers
hereunder. If the Joint Venture Company requests any changes or additions to
Micron’s existing Business Continuity Plan, the Parties shall work together in
good faith to resolve any such requests. The Joint Venture Company may provide
Micron’s Business Continuity Plan to its customers, subject to any
confidentiality requirements.

 

2.11                           Compliance
with Customer Requirements. The Joint Venture Company will inform Micron
in writing of any auditable supplier requirements for Probed Wafers supplied
hereunder, which are requested by the Joint Venture Company’s customers. Micron
and the Joint Venture Company shall work together in good faith to resolve any
such requests.

 

2.12                           Equivalency
of Operations. Micron will cooperate in good faith with the Joint Venture
Company in connection with any transfer of Semiconductor Manufacturing
Technology by the Joint Venture Company to Micron for Micron’s use in
connection with the production of Probed Wafers as such technology transfers may be
required pursuant to other Joint Venture Documents and, to the extent
applicable hereto, to establishing similar baseline performance for common Products
at facilities operated or subcontracted by the Joint Venture Company. Such
efforts will include the provision of up to date equivalency materials
(including correlation wafers), data and information, as applicable.

 

3

 

2.13                           Secondary
Silicon. To the extent any Secondary Silicon is produced in the course of
Micron’s supplying the Probed Wafers under this Agreement, it shall be provided
by Micron to the Joint Venture Company, which shall provide the Secondary
Silicon to the Members in accordance with the Sharing Interests at the time. Micron
shall provide forecast and quantity reports on Secondary Silicon to the Joint
Venture Company, to the extent that such are reasonably available. ALL
SECONDARY SILICON PROVIDED HEREUNDER IS PROVIDED “AS IS,” “WHERE IS” WITH
ALL FAULTS AND DEFECTS BASIS WITHOUT WARRANTY OF ANY KIND.

 

2.14                           Option
to Designate WIP. As soon as practicable following the Joint Venture
Company’s written request, Micron will ensure that WIP in the NAND Line will be
designated for specified customers from Wafer Start. If the Joint Venture
Company does not elect to have WIP so designated, Micron will designate the WIP
for specified customers after Probe Testing. Custom product, if any, shall be
designated by Micron for the Joint Venture Company’s specified customers from
Wafer Start.

 

ARTICLE 3

PLANNING MEETINGS, FORECASTS AND MANUFACTURING PLAN

 

3.1                                 Planning
and Forecasting.

 

(a)                                  Micron
shall furnish the Joint Venture Company with a forecast on a Fiscal Quarter
basis, on a schedule agreed by the Parties, which includes the following
information, collectively the (“Planning Forecast”):

 

[***].

 

(b)                                 Proposed
Loading Plan. Based on the Planning Forecast, the Joint Venture Company
shall develop a [***] Proposed Loading Plan, which will be a proposed loading
plan for Probed Wafers for such period (“Proposed Loading Plan”).
The Joint Venture Company shall provide Micron with the Proposed Loading Plan
at least [***] ([***]) days prior to its review by the Manufacturing Committee.

 

4

 

(c)                                  Quarterly
Review of Manufacturing Plan. The Joint Venture Company will submit the
Proposed Loading Plan, the Planning Forecast and other requested information to
the Manufacturing Committee for endorsement. Once endorsed by the Manufacturing
Committee, the Proposed Loading Plan shall become the adopted Manufacturing
Plan for provision of Probed Wafers hereunder.

 

3.2                                 Performance
Reviews and Reports. Micron and the Joint Venture Company shall meet each
Fiscal Quarter to discuss the Performance Criteria and the most recent monthly
report. Micron shall provide the Joint Venture Company a monthly report, on a
date to be agreed by the Parties, which will include the following information:

 

(a)                                  Describes
[***];

 

(b)                                 Describes
[***];

 

(c)                                  Describes
[***]; and

 

(d)                                 Identifies
[***].

 

3.3                                 Performance
Reviews. The Parties shall hold monthly meetings on dates agreed by the
Parties, with the primary purpose of such monthly meetings to be the [***].

 

ARTICLE 4

PURCHASE AND SALE OF PRODUCT

 

4.1                                 Product
Quantity. The intent of the Parties is that the Joint Venture Company shall
order and purchase from Micron [***] of Probed
Wafers [***]. [***].

 

4.2                                 Placement
of Purchase Orders. Prior to the commencement of every Fiscal Quarter or
another time period agreed by the Parties, the Joint Venture Company shall
place a non-cancelable blanket purchase order in writing (via e-mail or
facsimile transmission) for the Probed Wafers to be supplied by Micron in the
following Fiscal Quarter as indicated in the Manufacturing Plan (each such
order, a “Purchase Order”). The Joint Venture
Company may issue change orders to such Purchase Orders to reflect changes
in the Manufacturing Plan, provided that such changes can be reasonably
accommodated within Micron’s NAND operations, without disrupting the on-going
production in a manner that negatively impacts the previously placed Purchase
Orders. The Joint Venture Company and Micron will work to

 

5

 

accommodate any such changes and minimize the
impact upon the Micron’s NAND operations. The Joint Venture Company may also
request special engineering or hot lots in accordance with Section II (e) of
Schedule 4.6. In the case of any conflict between the terms and
conditions of this Agreement and the terms and conditions of any Purchase Order
or other document issued by the Joint Venture Company or Micron in connection
with this Agreement or any addition to any terms and condition in this
Agreement in any such documents, the terms and conditions of this Agreement
shall control.

 

4.3                                 Shortfall.
Micron shall promptly notify the Joint Venture Company in writing of any
inability to meet a Purchase Order commitment to the Joint Venture Company.

 

4.4                                 Acceptance
of Purchase Order. Each Purchase Order that corresponds to the
Manufacturing Plan in the manner contemplated by Section 4.2 and,
and is otherwise free of errors, shall be deemed accepted by Micron upon
receipt and shall be binding on the Parties, to the extent not inconsistent
with the Manufacturing Plan.

 

4.5                                 Content
of Purchase Orders. Each Purchase Order shall specify the following
regarding the Probed Wafers:

 

(a)                                  Purchase
Order number;

 

(b)                                 Description
and part number for each Probed Wafer;

 

(c)                                  Ordered
quantity of each different product for the period;

 

(d)                                 Projected
Price for period covered by the Purchase Order;

 

(e)                                  Requested
delivery date;

 

(f)                                    Place
of delivery; and

 

(g)                                 Other
terms (if any).

 

4.6                                 Pricing.
Pricing for the Probed Wafers shall be pursuant to Schedule 4.6,
attached hereto and incorporated herein by this reference.

 

4.7                                 Taxes.

 

(a)                                  General.
All sales, use and other transfer taxes imposed directly on or solely as a
result of the sale of products and payments therefore provided herein shall be
stated separately on Micron’s invoice, collected from he Joint Venture Company
and shall be remitted by Micron to the appropriate tax authority (“Recoverable Taxes”), unless the Joint Venture Company
provides valid proof of tax exemption. 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 Joint Venture Company is
required by law, Micron shall have sole responsibility for payment of said
taxes to the appropriate tax authorities. In the event such taxes are
Recoverable Taxes and Micron does not collect tax from the Joint Venture
Company or pay such taxes to the appropriate governmental entity on a timely
basis, and is subsequently audited by any tax authority, liability of the Joint
Venture Company 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. Notwithstanding anything herein to the
contrary, taxes other

 

6

 

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

 

4.8                                 Invoicing.
Micron shall invoice the Joint Venture Company on a monthly basis in accordance
with the pricing provided in Schedule 4.6. All amounts owed under
this Agreement are stated, calculated and shall be paid in United States
Dollars. Except as otherwise specified in this Agreement, the Joint Venture
Company shall pay Micron for the amounts due, owing, and duly invoiced under
this Agreement within [***] ([***]) days following delivery of an invoice therefore
to such place as Micron may reasonably direct therein.

 

4.9                                 Payment
to Vendors. Micron shall be responsible for and shall hold the Joint
Venture Company harmless for any and all payments to Micron’s vendors or
suppliers utilized in the performance of this Agreement.

 

4.10                           Delivery,
Title and Risk of Loss. The Joint Venture Company shall hold title to all
Prime Wafers prior to Wafer Start and all WIP and Probed Wafers thereafter. Micron
shall hold risk of loss or damage to Prime Wafers, WIP and Probed Wafers until
the Probed Wafers are tendered to the carrier for shipment or transferred to
the assembly location, if Micron is performing the assembly services.

 

4.11                           Packaging
and Shipping. The packaging of the Probed Wafers supplier hereunder shall
be in conformance with: (i) the Specifications, as applicable; (ii) the
Joint Venture Company’s reasonable instructions; (iii) general industry
standards to ensure resistance to damage that may occur during
transportation. Micron shall mark all shipping containers with necessary
lifting, handling, and shipping information, Purchase Order number, date of
shipment, and the names of the Joint Venture Company and applicable customer,
is any. If no instructions are given, Micron shall select the most cost
effective carrier, given the time constraints known to Micron. At the Joint
Venture Company’s request, Micron will provide drop-shipment of Probed Wafers
to the Joint Venture Company’s customers or as otherwise directed by the Joint
Venture Company.

 

4.12                           Shipment
Charges. In order to ensure timely and complete shipment of Probed Wafers
to the Joint Venture Company, Micron shall arrange for shipping to the Joint
Venture Company’s customer or assembly services provider. To the extent that
the shipping charges, insurance, taxes, customs charges and any fees and duties
in connection with such shipment are not charged to directly to a Joint Venture
Company account, Micron shall pay such costs and invoice them to the Joint
Venture Company under the appropriate services agreement between the Parties.

 

7

 

4.13                           Customs
Clearance. Upon the Joint Venture Company’s request, Micron will promptly
provide the Joint Venture Company with a statement of origin for all Probed
Wafers and with applicable customs documentation for Probed Wafers wholly or
partially manufactured outside of the country of import.

 

ARTICLE 5

VISITATIONS, AUDITS AND MANAGEMENT REVIEWS

 

5.1                                 Visits.
Micron will support the Joint Venture Company’s and its customers’ reasonable
requests for visits to the NAND Product Line utilized hereunder for the supply
of Probed Wafers for the purpose of reviewing performance of production of
Probed Wafers, including requests for further information and assistance in
troubleshooting performance issues. Such requests shall be reasonably granted
by Micron so long as such visits and meetings do not unduly interfere with
Micron’s operations and business affairs.

 

5.2                                 Inventory
Audit. Micron will grant reasonable access to the Joint Venture Company’s
personnel or appointed auditors to conduct an annual inventory audit of the
inventory of WIP and Probed Wafers. Such annual audit shall be coordinated by
Micron according to its standard inventory procedures and shall be conducted in
such a manner as to minimize disruptions to the performance Micron’s operations
and business affairs. Any such annual audit will be pre-scheduled to coincide
with a monthly, quarterly or yearly cut-off as reported by Micron or as
otherwise agreed to by both Parties.

 

5.3                                 Performance
Audit. The Joint Venture Company representatives shall be allowed to visit
Micron’s NAND Product Line during normal working hours upon reasonable advanced
written notice to Micron for the purposes of auditing the processes and
compliance with any requirements set forth in this Agreement. Upon completion
of the audit, Micron and the Joint Venture Company shall work in good faith to
agree to an audit closure plan, which will be documented in the audit report
issued by the Joint Venture Company. If the Joint Venture Company requests any
changes or additions to Micron’s existing process and control mechanisms, the
Parties shall work together in good faith to resolve any such requests.

 

5.4                                 Audit
of Pricing and Additional Equipment. The Joint Venture Company reserves the
right to have Micron’s books and records related to the pricing of Probed
Wafers and the purchase of Additional Equipment hereunder inspected and audited
not more than [***] during any Fiscal Year to ensure compliance with Schedules
2.6 and 4.6 of this Agreement in regards to pricing of the Probed Wafers. Such
audit will be performed by an independent third party auditor acceptable to
both Parties at the Joint Venture Company’s expense. If the Parties cannot
agree, the Joint Venture Company may select one of the major
internationally recognized audit firms, which is not the auditor for either of
the Joint Venture Company’s customers. The Joint Venture Company shall provide
[***] ([***]) days advance written notice to Micron of its desire to initiate
an audit and the audit shall be scheduled so that it does not adversely impact
or interrupt Micron’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 shall be reported to the Parties and

 

8

 

its customers, and be limited to the (i) discrepancies
identified by the audit, (ii) results of the physical inspection of the
Additional Equipment;  and, (iii) subject
to any limitations imposed by law, results regarding purchase and utilization
of such Additional Equipment. Notwithstanding the foregoing, any auditor
reports shall not disclose any Micron pricing or terms of purchase for any
purchases of materials or equipment hereunder to the Joint Venture Company’s
customers other than Micron, absent written agreement from the customers’
respective legal counsel. If any audit reveals a material discrepancy, the
Joint Venture Company may increase the frequency of such audits to
quarterly for the subsequent [***] ([***]) month period.

 

ARTICLE 6

REPRESENTATIONS; WARRANTIES; HAZARDOUS MATERIALS;

DISCLAIMER

 

6.1                                 Product
Warranty. Micron warrants that the Probed Wafers supplied hereunder:

 

(a)                                  conform in
all material aspects to the agreed Specification;

 

(b)                                 are
free from defects in materials or workmanship; and

 

(c)                                  free
of liens and encumbrances, not including any express or implied warranty of
non-infringement and Micron has the necessary right, title, and interest to
provide the Probed Wafers to the Joint Venture Company.

 

Each of the warranties Sections 6.1 (a), (b) and (c) shall
survive any delivery, inspection, acceptance, payment, or resale of the Probed
Wafers.

 

6.2                                 Warranty
Claims. Within a period of time, [***] for the NAND Flash Memory Product
produced from the Probed Wafers at issue [***] of the Probed Wafers at issue to
the Joint Venture Company (“Warranty Notice Period”),
the Joint Venture Company shall notify Micron if it believes that any Probed
Wafers do not meet the Probed Wafers warranty set forth in Section 6.2.
The Joint Venture Company shall return such Probed Wafers to Micron as directed
by the Joint Venture Company. If a Probed Wafer is determined not to be in
compliance with such warranty, then the Joint Venture Company shall be entitled
to return such Probed Wafer and cause Micron to replace at Micron’s expense or,
at the Joint Venture Company’s option, receive a credit or refund of any monies
paid to Micron in respect of such Probed Wafer, [***]. The basis for such
refund or credit shall be [***]. THE FOREGOING REMEDY IS [***].

 

6.3                                 Inspections.
The Joint Venture Company may, upon reasonable advance written notice, request
samples of WIP hereunder for purposes of determining compliance with the
Specifications and Performance Criteria hereunder, provided that the provision
of such samples shall not materially impact Micron’s NAND Product Line or its
ability to meet delivery

 

9

 

requirements
under any accepted Purchase Order. Prior to requesting such samples, the Joint Venture
Company shall use good faith efforts to determine compliance using alternative
methods, including but not limited to the review of data provided pursuant to Section 2.9.
Any samples provided hereunder shall be: (i) limited in quantity to the
amount reasonably necessary for the purposes hereunder; (ii) included in
the pricing; and (iii) included in any performance requirements, if any. Micron
shall provide reasonable assistance for the safety and convenience of the Joint
Venture Company in obtaining the samples in such manner as shall not
unreasonably hinder or delay Micron’s performance.

 

6.4                                 Hazardous
Materials.

 

(a)                                  If
Probed Wafers provided hereunder include Hazardous Materials as determined in
accordance with applicable law, Micron represents and warrants that Micron and
Micron’s employees, agents, and subcontractors, if any, actually working with
such materials in supplying the Probed Wafers hereunder to the Joint Venture
Company shall be trained in accordance with applicable law regarding the nature
of and hazards associated with the handling, transportation and use of such
Hazardous Materials, as applicable to Micron.

 

(b)                                 To
the extent required by applicable law, Micron shall provide the Joint Venture
Company with Material Safety Data Sheets (MSDS) either prior to or accompanying
any delivery of Probed Wafers to the Joint Venture Company.

 

6.5                                 Disclaimer.
EXCEPT AS OTHERWISE EXPRESSLY PROVIDED IN THIS ARTICLE 6, MICRON
HEREBY EXPRESSLY DISCLAIMS ALL REPRESENTATIONS AND WARRANTIES, EXPRESS OR IMPLIED,
INCLUDING, BUT NOT LIMITED TO, THE IMPLIED WARRANTIES OF MERCHANTABILITY,
SUITABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE, NON-INFRINGEMENT OR
OTHERWISE, WITH RESPECT TO THE PROBED WAFERS PROVIDED UNDER THIS AGREEMENT. THE
WARRANTIES WILL NOT APPLY TO: (i) ANY WARRANTY CLAIM OR ISSUE, OR DEFECT
TO THE EXTENT CAUSED BY ITEMS PROVIDED OR SPECIFIED BY, THROUGH OR ON BEHALF OF
THE JOINT VENTURE COMPANY OR ANY COMMITTEE OF THE MEMBERS HEREUNDER, [***]; OR (ii) ANY
OF THE PROBED WAFERS THAT HAVE BEEN REPAIRED OR ALTERED, EXCEPT AS AUTHORIZED
BY MICRON OR WHICH WERE SUBJECTED TO MISUSE, NEGLIGENCE, ACCIDENT OR ABUSE.

 

ARTICLE 7

CONFIDENTIALITY

 

7.1                                 Protection
and Use of Confidential Information. All information provided, disclosed or
obtained in connection with this Agreement or the performance of any of the
Parties’ activities under this Agreement shall be subject to all applicable
provisions of the Confidentiality Agreement. Furthermore, the terms and
conditions of this Agreement shall be considered “Confidential
Information” under the 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 Confidentiality Agreement, the terms of this Agreement shall control.

 

10

 

ARTICLE 8

INDEMNIFICATION

 

8.1                                 Mutual
General Indemnity. Subject to ARTICLE 9, each Party (“Indemnifying
Party”) shall indemnify, defend and hold harmless the other Party (“Indemnified
Party”) from and against any and all Indemnified Losses based on or
attributable to any Third Party Claim or threatened Third Party Claim arising
under this Agreement and as a result of the Indemnifying Party’s negligence,
gross negligence or willful misconduct of the Indemnifying Party or any of its
respective officers, directors, employees, agents or subcontractors.
Notwithstanding the foregoing, this Section 8.1 shall not apply to any
claims or losses based on or attributable to intellectual property infringement.

 

8.2                                 General
Procedures. Promptly after the receipt by any Indemnified Party of a notice
of any Third Party Claim that an Indemnified Party seeks to be indemnified
under this Agreement, such Indemnified Party shall give written notice of such
Third Party Claim to the Indemnifying Party, 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 Indemnifying Party from liability on account of this
indemnification, except if and only to the extent that the Indemnifying Party
is actually prejudiced by such failure or delay. 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 Third Party Claim. The
Indemnifying Party 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 Indemnifying Party
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 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 Third Party Claim and prior to such time as the
Indemnifying Party has notified the Indemnified Party that it has assumed the
defense of such Third Party Claim; (ii) the Indemnified Party shall not
file any papers or, other than in connection with a settlement of the Third
Party Claim, consent to the entry of any judgment without the prior written
consent of the Indemnifying Party (not to be unreasonably withheld, conditioned
or delayed); and (iii) the Indemnifying Party will 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). Whether or not the
Indemnifying Party shall have assumed the defense of the Indemnified Party for
a Third Party Claim, such Indemnifying Party shall not be obligated to
indemnify and hold harmless the Indemnified Party hereunder for any consent to
the entry of judgment or settlement entered into with respect to such Third
Party Claim without the Indemnifying Party’s prior written consent, which
consent shall not be unreasonably withheld, conditioned or delayed.

 

11

 

(a)                                  Equitable
Remedies. In the case of any Third Party Claim where the Indemnifying Party
reasonably believes that it would be appropriate to settle such Third Party
Claim using equitable remedies (i.e., remedies involving the future activity
and conduct of the Joint Venture Company), the Indemnifying Party 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.

 

(b)                                 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 agreeing;  (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 Indemnifying Party
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 Indemnifying Party.

 

(c)                                  Certain
Additional Procedures. The Indemnified Party shall cooperate and assist the
Indemnifying Party in determining the validity of any Third Party Claim for
indemnity by the Indemnified Party and in otherwise resolving such matters. The
Indemnified Party shall cooperate in the defense by the Indemnifying Party of
each Third Party Claim (and the Indemnified Party and the Indemnifying Party
agree with respect to all such Third Party Claim that a common interest
privilege agreement exists between them), including:, (i) permitting the
Indemnifying Party to discuss the Third Party Claim with such officers,
employees, consultants and representatives of the Indemnified Party as the
Indemnifying Party reasonably requests; (ii)  providing to the
Indemnifying Party copies of documents and samples of products as the
Indemnifying Party 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 Indemnifying Party; (iv) 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; (v) 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; 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 Indemnifying
Party has been provided a reasonable opportunity to review, copy and assert
privileges covering such documents.

 

12

 

ARTICLE 9

LIMITATION OF LIABILITY

 

9.1                                 Damages
Limitation. SUBJECT TO SECTION 9.3, IN NO EVENT SHALL EITHER PARTY BE
LIABLE TO THE OTHER PARTY FOR ANY SPECIAL, CONSEQUENTIAL, INCIDENTAL OR OTHER
INDIRECT DAMAGES OR ANY PUNITIVE OR EXEMPLARY DAMAGES ARISING OUT OF OR IN
CONNECTION WITH THIS AGREEMENT, WHETHER SUCH DAMAGES ARE BASED ON BREACH OF
CONTRACT, TORT (INCLUDING NEGLIGENCE) OR OTHER THEORY OF LIABILITY, AND EVEN IF
A PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. THE PARTIES AGREE
THAT TO THE EXTENT A CLAIM ARISES UNDER THIS AGREEMENT, THE CLAIM SHALL BE
BROUGHT UNDER THIS AGREEMENT.

 

9.2                                 Damages
Cap. SUBJECT TO SECTION 9.3 AND SPECIFICALLY EXCLUDING ANY
AMOUNTS DUE EITHER PARTY UNDER SECTIONS III AND/OR IV OF SCHEDULE 4.6,
IF EITHER PARTY SHALL BE LIABLE TO THE OTHER PARTY FOR ANY MATTER RELATING TO
OR ARISING FROM THIS AGREEMENT, WHETHER BASED UPON AN ACTION OR CLAIM IN
CONTRACT, WARRANTY, EQUITY, NEGLIGENCE, INTENDED CONDUCT OR OTHERWISE
(INCLUDING ANY ACTION OR CLAIM ARISING FROM AN ACT OR OMISSION, NEGLIGENT OR
OTHERWISE, OF THE LIABLE PARTY), THE AMOUNT OF DAMAGES RECOVERABLE AGAINST THE
LIABLE PARTY WITH RESPECT TO ANY BREACH, PERFORMANCE, NONPERFORMANCE, ACT OR
OMISSION HEREUNDER WILL NOT EXCEED AN AMOUNT [***].

 

9.3                                 Exclusions
and Mitigation. Sections 9.1 and 9.2 will not apply
to either Party’s breach of ARTICLE 7, and Section 9.2
shall not apply to the Joint Venture Company’s payment obligations for Probed
Wafers. Each Party shall have a duty to use commercially reasonable efforts to
mitigate damages for which the other Party is responsible.

 

9.4                                 Losses.
Except as provided under Section 8.1 the Joint Venture Company and
Micron each shall be responsible for Losses to their respective tangible
personal or real property (whether owned or leased), and each Party agrees to
look only to their own insurance arrangements with respect to such damages. The
Joint Venture Company and Micron waive all rights to recover against each
other, including each Party’s insurers’ subrogation rights, if any, for any
loss or damage to their respective tangible personal property or real property
(whether owned or leased) from any cause covered by insurance maintained by
each of them, including their respective deductibles or self-insured retentions.
Notwithstanding the foregoing, in the event of Losses hereunder involving a
property, transit or crime event or occurrence that: (i) is insured under
Micron’s insurance policies; (ii) a single insurance deductible applies;
and (iii) the loss event or occurrence affects the insured ownership or
insured legal interests of both Parties, then the Parties shall share the cost
of the deductible in proportion to each Party’s insured ownership or legal
interests in relative proportion to the total insured ownership or legal
interests 

 

13

 

of the
Parties.

 

ARTICLE 10

TERM AND TERMINATION

 

10.1                           Term.
The term of this Agreement commences on the Effective Date and continues until
the earlier of: (i) five (5) years from the Effective Date, (ii) termination
by mutual agreement of the Parties; or (iii) termination by either Party
pursuant to Section 10.3 (such period of time, the “Term”). [***].
In addition, upon a [***] pursuant to the LLC Operating Agreement, the [***]. Notwithstanding
the foregoing, in the event of such a [***] pursuant to the LLC Operating
Agreement, all payments [***].

 

10.2                           Renewal
Terms. The Parties may extend the term of this Agreement beyond the
expiration of the initial term as set forth in Section 10.1(i) upon
mutual agreement.

 

10.3                           Termination
for Cause. Either party may terminate this Agreement for cause if the
other party materially breaches this Agreement and fails to cure the same
within one hundred eighty (180) days after receipt of written notice from the
non-breaching party. In the event that the Joint Venture Company terminates the
Agreement for cause hereunder, the Probed Wafer Output Performance Metric in Section III-V
of Schedule 4.6 shall be the Joint Venture Company’s sole remedy for
such termination. Notwithstanding any provision to the contrary, if Micron
terminates the Agreement for cause hereunder, Sections III-V of Schedule 4.6
shall not survive termination and neither the Joint Venture Company nor any of
its Members shall be entitled to any payments there under commencing with the
date of the Joint Venture Company’s material breach, which resulted in the
termination for cause hereunder.

 

10.4                           Survival.
Termination of this Agreement shall not affect any of the Parties’ respective
rights accrued or obligations owed before termination, including any rights or
obligations of the Parties in respect of any accepted Purchase Orders existing
at the time of termination. In addition, the following shall survive
termination of this Agreement for any reason: Sections 4.7, 4.8, 5.4, 6.2,
6.5 and 7.1 and ARTICLES 7, 8, 9, and 11. The survival of Sections
III - V of Schedule 4.6 shall be governed by Section 10.3
and Section V of Schedule 4.6.

 

14

 

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 the other party specifying the obligation to be
excused and describing the events or conditions constituting the Force Majeure
Event. As used herein, “Force Majeure Event” means the occurrence of an event
or circumstance beyond the reasonable control of the Party failing to perform,
including, without limitation, (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 federal, state, local or
foreign governmental authorities or courts; (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’s nonperformance hereunder.

 

11.2                           Assignment.
Except as otherwise provided in the Joint Venture Documents, neither this
Agreement nor any right or obligation hereunder may be assigned or delegated
by either Party in whole or in part to any other Person, other than a
Wholly-Owned Subsidiary of such Party, without the prior written consent of the
non-assigning Party. Any purported assignment in violation of the provisions of
this Section shall be null and void and have no effect. This Agreement
shall be binding upon and inure to the benefit of the permitted successors and
permitted assigns of each Party hereto.

 

11.3                           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 a Party’s
rights hereunder.

 

11.4                           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
carrier or when delivered by hand, (c) the expiration of five (5) Business
Days after the day when mailed in the United States by certified or registered
mail, postage prepaid, or (d) 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:

IM Flash Technologies, LLC

1550 East 3400 North

Lehi, UT 84043

Attention: 
David A. Baglee; Rodney Morgan

Facsimile: (801) 767-5370

 

In the case of Intel:

Intel Corporation

2200 Mission College Blvd.

Mail Stop SC4-203

Santa Clara, CA 95054

 

15

 

Attention:  General Counsel

Facsimile: (408) 653-8050

 

with a copy to:

 

Intel Corporation

2200 Mission College Blvd.

Mailstop RN6-46

Santa Clara, CA 95054

Attention:  [***]

Facsimile:  [***]

 

In the case of Micron:

Micron Technology, Inc.

8000 S. Federal Way

Boise, ID 83707-0006

Attention:  General Counsel

Facsimile: (208) 368-4540

 

Either Party may change its address for notices upon giving ten (10) days
written notice of such change to the other Party in the manner provided above.

 

11.5                           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.

 

11.6                           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.

 

16

 

11.7                           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.

 

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

 

11.9                           Entire
Agreement. This Agreement and the applicable provisions of the
Confidentiality Agreement, which are incorporated herein and made a part hereof,
together with the Exhibits and Schedules hereto and the agreements and
instruments expressly provided for herein, 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.

 

11.10                     Choice
of Law. This Agreement shall be construed and enforced in accordance with
and governed by the laws of the State of Delaware, without giving effect to the
principles of conflict of laws thereof.

 

11.11                     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 a state or federal court of competent jurisdiction located
in the State of Delaware, 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. Process in any such suit, action or proceeding may be
served on any party anywhere in the world, whether within or without the
jurisdiction of any such court.

 

11.12                     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.

 

11.13                     Compliance with Policies. Each Party and its employees, contractors or
other 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 employees,
contractors or other 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 Party’s business or operations.

 

11.14                     Insurance.
Without limiting or qualifying Micron’s liabilities, obligations, or
indemnities otherwise assumed by Micron pursuant to this Agreement, Micron
shall maintain with companies acceptable to the Joint Venture Company:

 

(a)                                  Commercial
General Liability with limits of liability not less than $[***] per occurrence
and including liability coverage for bodily injury or property damage (1) assumed
in a contract or agreement pertaining to Micron’s business and (2) arising
out of Micron’s products, Services, or work. Micron’s insurance shall be
primary with respect to liabilities assumed by Micron in this Agreement to the
extent such liabilities are the subject of Micron’s insurance, and any
applicable insurance maintained by the Joint Venture Company shall be excess
and non-contributing. The above coverage shall name Parent as additional
insured as respects Micron’s work or services provided to or on behalf of
Parent.

 

(b)                                 Automobile
Liability Insurance with limits of liability not less than $[***] per accident
for bodily injury or property damage.

 

(c)                                  Statutory
Workers’ Compensation coverage, including a Broad Form All States
Endorsement in the amount required by law, and Employers’ Liability Insurance
in the amount of $[***] per occurrence. Such insurance shall include mutual
insurer’s waiver of subrogation.

 

11.15                     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]

 

17

 

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

 

	
  MICRON
  TECHNOLOGY, INC.

  	
  IM FLASH
  TECHNOLOGIES, LLC

  
	
   

  	
   

  
	
  By:

  	
  /s/ STEVEN R. APPLETON

  	
   

  	
  By:

  	
  /s/ DAVID A. BAGLEE

  	
   

  
	
  Name: Steven R. Appleton

  	
  Name: David A. Baglee

  
	
  Title: Chief Executive Officer and
  President

  	
  Title: Authorized Officer

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ RODNEY MORGAN

  	
   

  
	
   

  	
  Name: Rodney Morgan

  
	
   

  	
  Title: Authorized Officer

  
							

 

THIS IS
THE SIGNATURE PAGE FOR THE BOISE SUPPLY AGREEMENT

ENTERED INTO BY AND BETWEEN MICRON TECHNOLOGY, INC. AND IM

FLASH TECHNOLOGIES, LLC

 

18

 

EXHIBIT A

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 a Person that directly or indirectly through
one or more intermediaries, controls, or is controlled by, or is under common
control with, the Person specified.

 

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

 

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

 

“Business Continuity Plan” means a plan to recover the
production process in the event of a natural disaster or any other event that
disrupts the production process or the ability to meet its delivery commitments
or satisfy customer orders.

 

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

 

“Confidentiality Agreement” means that Mutual Confidentiality
Agreement by and among the Joint Venture Company, Micron and Intel Corporation
dated as of the Effective Date.

 

“Capacity” means the rate of output (defined in terms of units
per time period), at a particular point in time, at which a particular facility
or set of facilities of Micron (or of a third party on Micron’s behalf) is
capable of producing such units.

 

“Cycle Time” means the time required to process a unit through a
portion of the manufacturing process (e.g., FAB, assembly, or final test) or
through the manufacturing process as a whole.

 

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

 

“Excursion” means an occurrence, either during production or
after customer delivery, that is outside normal historical behavior as
established by both Parties in writing in the applicable Specification which may impact
performance, Quality and Reliability, or customer delivery commitments for
Probed Wafers, NAND Flash Memory Product or Known Good Die.

 

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

 

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

 

19

 

“Fiscal Year” means the fiscal year of Micron for financial
accounting purposes.

 

“Flash Memory Integrated Circuit” means a non-volatile memory
integrated circuit that contains 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), together with any
on-chip control, I/O and other support circuitry.

 

“GAAP” means United States generally accepted accounting
principles as in effect from time to time.

 

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

 

“Hazardous Materials” means dangerous goods, chemicals,
contaminants, substances, pollutants or any other materials that are defined as
hazardous by relevant local, state, national, or international law, regulations
and standards.

 

“Indemnified Party” shall mean any of the following to the
extent entitled to seek indemnification under this Agreement: Micron and the
Joint Venture Company, and their respective Affiliates, officers, directors,
employees, agents, assigns and successors.

 

“Indemnified Losses” shall mean all direct, out-of-pocket
liabilities, damages, losses, costs and expenses of any nature incurred by an
Indemnified Party, including reasonable attorneys’ fees and consultants’ fees,
and all damages, fines, penalties and judgments awarded or entered against an
Indemnified Party, but specifically excluding any special, consequential or
other types of indirect damages.

 

“Indemnifying Party” shall mean the Party owing a duty of
indemnification to another Party with respect to a particular Third Party
Claim.

 

“Intel” means Intel Corporation, a Delaware corporation.

 

“Joint Venture Company” means IM Flash Technologies, LLC, a
Delaware limited liability company that is the subject of the Joint Venture Documents.

 

“Joint Venture Documents” means that certain Master Agreement by
and between Intel Corporation and Micron dated November 18, 2005, and each agreement referenced therein (whether directly or
indirectly through reference in any of such referenced agreements).

 

“Indemnified Party” shall mean any of the following to the
extent entitled to seek indemnification under this Agreement: Intel, Micron,
the Joint Venture Company, and their respective Affiliates, officers,
directors, employees, agents, assigns and successors.

 

“Indemnified Losses” shall mean all direct, out-of-pocket
liabilities, damages, losses, costs and expenses of any nature incurred by an
Indemnified Party, including reasonable attorneys’ fees and consultants’ fees,
and all damages, fines, penalties and judgments awarded or

 

20

 

entered against an Indemnified Party, but
specifically excluding any special, consequential or other types of indirect
damages.

 

“Indemnifying Party” shall mean the Party owing a duty of
indemnification to another Party with respect to a particular Third Party
Claim.

 

“Losses” mean, collectively, any and all insurable liabilities,
damages, losses, costs and expenses (including reasonable attorneys’ and
consultants’ fees and expenses).

 

“Manufacturing Committee” means the Manufacturing Committee as
defined in Section 8.6 of the LLC Operating Agreement.

 

“Manufacturing Plan” means the manufacturing plan developed
pursuant to Section 8.5(b) of the LLC Operating Agreement.

 

“Members” means Micron and Intel.

 

“Micron” means Micron Technology, Inc., a Delaware
corporation.

 

“NAND Flash Memory Integrated Circuit” means a Flash Memory
Integrated Circuit, where the memory cells included in the Flash Memory
Integrated Circuit are arranged in groups of serially connected memory cells
(each such group of serially connected memory cells called a “string”) in which
the drain of each memory cell of a string (other than the first memory cell in
the string) is connected in series to the source of another memory cell in
such string, the gate of each memory cell in such string is directly
accessible, and the drain of the uppermost bit of such string is coupled to the
bitline of the memory array.

 

“NAND Flash Memory Product” means any NAND Flash Memory Wafer,
NAND Flash Memory Die or NAND Flash Memory Die Package.

 

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

 

“Performance Criteria” means[***].

 

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

 

“Price” shall have the meaning as set forth on Schedule 4.6.

 

“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 NAND
Flash Memory 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.

 

21

 

“Prime Wafer” means the raw silicon wafers required, on a
product-by-product basis, for the manufacturer.

 

“Probed Wafer” means a Prime Wafer that has been processed to
the point of containing NAND Flash Memory Integrated Circuits organized in
multiple semiconductor die and that has undergone Probe Testing to the level
requested by the Joint Venture Company, but before singulation of said die into
individual semiconductor die.

 

“Products” means a
Probed Wafer, Known Good Die, or NAND Flash Memory Product, or such other
products that are manufactured by or for the Joint Venture Company.

 

“Purchase Order” shall have the meaning set forth in Section 3.3
hereof.

 

“Quality and Reliability” or “Q&R” means building and
sustaining relationships which assess, anticipate, and fulfill the quality and
reliability standards as set forth in the Specification or Manufacturing Plan
for products and other areas of the Joint Venture or its facilities (including,
environmental health and safety, environmental compliance, employment law).

 

“Receiving Party” shall have the meaning set forth in the
definition of Confidential Information.

 

“Secondary Silicon” shall mean a Prime Wafer that has been
processed to the point of containing NAND Flash Memory Integrated Circuits
organized in multiple semiconductor die and that has undergone Probe Testing: (a) would
otherwise constitute a Probed Wafer but for failure to achieve qualification
and (b) otherwise conform to the applicable Secondary Silicon
Specifications.

 

“Specifications” means those data sheet specifications used to
describe, characterize, and define the quality and performance of NAND Flash
Memory Products, Known Good Die and Probed Wafers, including any interim
performance specifications at Probe Testing or other testing, as such
specifications may be determined from time to time by the Joint Venture
Company in accordance with the Joint Venture Documents.

 

“Term” shall have the meaning set forth in Section 10.1
hereof.

 

“Third Party Claim” shall mean any claim, demand, action, suit
or proceeding, and any actual or threatened lawsuit, complaint, cross-complaint
or counter-complaint, arbitration 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, by
any Person other than Intel, Micron, the Joint Venture Company and Affiliates
of the foregoing, against an Indemnified Party, in each case alleging
entitlement to any Indemnified Losses pursuant to any indemnification
obligation under this Agreement.

 

“Warranty Claim Period” shall have the meaning set forth in Section 6.4
hereof.

 

“WIP” means work in process. This includes all wafers and
product in wafer fabrication, sort, assembly, and/or final test, including
prime and secondary wafers, and all completed product units not yet delivered
to the Joint Venture Company.

 

“Yield” means anticipated output of Probed Wafers from WIP at a
particular point in time, including line yield, die yield, assembly yield and
final testing yield.

 

22

 

SCHEDULES

 

	
  Schedule 2.3

  	
  Performance Criteria

  
	
   

  	
   

  
	
  Schedule 2.6

  	
  Additional Equipment

  
	
   

  	
   

  
	
  Schedule 2.6(A)

  	
  Form Of Addendum To Agreement

  
	
   

  	
   

  
	
  Schedule 2.6 (B)

  	
  Additional Equipment

  
	
   

  	
   

  
	
  Schedule 4.6

  	
  Prepaid, Pricing And Performance Metrics

  
	
   

  	
   

  
	
  Schedule 4.6(A)

  	
  Cost Forecast

  
	
   

  	
   

  
	
  Schedule 4.6(B)

  	
  Projected Output

  

 

23Exhibit 10.159

 

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

 

MTV LEASE AGREEMENT

 

This
MTV Lease Agreement (this “Lease”) is made
as of the 6th day of January, 2006, by and between MICRON
TECHNOLOGY, INC., a Delaware corporation (hereinafter referred to as the “Landlord”), and IM FLASH TECHNOLOGIES, LLC, a Delaware
limited liability company (hereinafter referred to as “Tenant”).

 

RECITALS

 

A.            Landlord and Intel
Corporation (“Intel”) entered into that certain Master Agreement dated as of
the 18th day of November, 2005 (the “Master
Agreement”) with respect to the formation of Tenant;

 

B.            Pursuant to the Master
Agreement, Landlord and Intel entered into that certain Limited Liability
Company Operating Agreement dated as of the 6th day of January, 2006
(the “Operating Agreement”), pursuant to
which Landlord and Intel set forth their agreement regarding the operation of
Tenant, of which Landlord and Intel are each Members (as defined in the
Operating Agreement);

 

C.            Pursuant to the Master
Agreement, Landlord and Tenant have entered into that certain Manufacturing
Services Agreement as of the 6th day of January, 2006 (the “Manufacturing Services Agreement”), which controls Landlord’s
and Tenant’s relationship with respect to certain services provided by Landlord
in connection with the manufacture and production of certain product described
in the Manufacturing Services Agreement (the “Product”);

 

D.            Landlord is the owner of a
wafer fabrication building (the “Building”)
situated on a parcel of land located in Manassas, Virginia, more particularly
described on Exhibit A attached hereto (the “Land”;
the Building and the Land collectively, the “MTV Site”);

 

E.             The Building consists of two
modules, known as “Module 1” and “Module 2”, each of which contains
approximately 78,000 square feet of clean room space;

 

F.             Pursuant to the Operating
Agreement, Landlord has agreed to lease to Tenant, and Tenant has agreed to
lease from Landlord, Module 1, which is depicted on Exhibit B attached
hereto (the “Premises”);

 

NOW,
THEREFORE, in consideration of the mutual premises, covenants, terms and
conditions herein contained and intending to be legally bound, Landlord and Tenant
hereby agree as follows:

 

ARTICLE 1

GRANT

 

1.1                       Premises.  Subject to the provisions of the Operating
Agreement and the Manufacturing Services Agreement, Landlord, in consideration
of its membership interest in Tenant, does hereby lease the Premises to
Tenant.  The configuration of the
Premises within the

 

 

Building may
be modified from time to time by mutual agreement of Landlord and Tenant.  Tenant acknowledges that Landlord retains the
right to use up to 1,000 square feet of the Premises as shown on Exhibit B for
the operation of DRAM tools used in connection with Landlord’s manufacturing
activities in Module II of the Building.

 

1.2                       Common
Areas.  Tenant shall have the
nonexclusive right, in common with Landlord and any other occupants of the Building
and the Land, to use (1) the public and common areas of the Building and any
other building amenities or facilities which are necessary in connection with
the manufacturing of Product as provided by the Manufacturing Services
Agreement or as otherwise contemplated by the Manufacturing Services Agreement;
and (2) any entrances, stairs, rights of pedestrian and vehicular ingress,
egress and access, elevators, driveways, alleys, fire corridors, public
restrooms, cafeterias, parking lots, and loading docks within the Building or
located on the Land that are generally necessary in connection with the
manufacturing of Product as provided by the Manufacturing Services Agreement,
all upon the terms and conditions hereinafter set forth (collectively, the “Common Areas”). 
Landlord shall be responsible at its expense to maintain the Common
Areas in accordance with Landlord’s standard of maintenance existing on the
date hereof.

 

1.3                       Rights
Retained by Landlord.  Subject to the
provisions of the Manufacturing Services Agreement, Landlord hereby reserves
the following rights with respect to the Common Areas:  to establish reasonable and
non-discriminatory rules and regulations for the use thereof; to use or permit
the use by others to whom Landlord may have granted such rights; to close all
or any portion thereof as may be deemed necessary by Landlord to prevent a
dedication thereof or the accrual of any rights by any person or the public
therein; and to change the layout of the Common Areas, including the right to reasonably
add to or subtract from their shape and size, whether by the addition of
Building improvements or otherwise, provided in all such cases reasonably
equivalent access to the Premises shall be maintained.

 

1.4                       Condition
of Premises.  The Parties acknowledge
that the Premises need to be improved by Landlord as specified in Exhibit C
attached hereto so that the Premises will be ready for the installation of the
Tenant’s manufacturing tools (as defined therein, the “Improvements”).  At such time as the Improvements have been
completed by Landlord and Tenant has approved the Improvements in accordance
with the sign off procedures provided below, Tenant shall take possession of
the Premises.  Tenant will be deemed to have
approved the Improvements when all of the following sign off procedures are
completed:

 

(a)           Landlord
shall have provided written notification to the Tenant that the clean room
ballrooms, bay and chases have been certified by Landlord’s micro contamination
team to have met Landlord’s design parameters for the Premises;

 

(b)           Landlord
and/or its contractor(s) shall have provided written notification that the tool
utility generation and distribution systems have been installed, are operating
as designed, and are ready for tool connection;

 

(c)           Landlord
shall have provided written notification to Tenant that its facilities
technicians are all trained in the operation and maintenance of the systems
that are part of the Improvements;

 

 

(d)           Landlord
shall have provided written notification to Tenant that the bulk and process
chemical and gas systems have been correctly installed and qualified as
required for the NAND manufacturing process chemistry used to manufacture the
Product; and

 

(e)           Landlord
shall have provided to Tenant a copy of the certificate of occupancy for the
Premises.

 

Following receipt of the notification
pursuant to Subsection (a) and while the approval process continues, Tenant may
commence installation of its manufacturing tools.

 

ARTICLE 2

LEASE TERM

 

2.1                       Term.  The term of this Lease (the “Term”) shall begin on the date hereof (the “Commencement Date”) and continue for a period of ten (10)
years and thereafter until the Liquidation Date, as defined in the Operating
Agreement (the “Expiration Date”); provided, however, that
the Term shall terminate on the earlier to occur of (i) a Liquidation Date that
occurs prior to the Expiration Date, (ii) the termination or expiration of the
Manufacturing Services Agreement, (iii) the date on which the closing of the
Micron [***] Purchase Option, as defined in the Operating Agreement, occurs, or
(iv) the “Minority Closing” as defined in the
Operating Agreement.

 

ARTICLE 3

RENT

 

3.1                       Rent.  Landlord and Tenant acknowledge and agree
that the consideration for this Lease recited in the Operating Agreement
constitutes valuable and adequate consideration for this Lease, and that,
except as otherwise expressly set forth in Section 3.2 below, no further
payment from Tenant shall be required hereunder.

 

3.2                       Other
Amounts.  Landlord and Tenant
acknowledge that Tenant’s share of the costs incurred by Landlord hereunder
(including, for example, Real Estate Taxes as hereinafter defined, personal
property and other ad valorem taxes paid by Landlord as referred to in Section
4.2, services, utilities, insurance and maintenance), shall be reimbursed by
Tenant as a component of the costs of production pursuant to the terms of the
Manufacturing Services Agreement. 
Nothing in this Lease shall be construed as limiting or precluding the
allocation of any costs or expenses as provided for in the Manufacturing
Services Agreement, including, without limitation, any references herein that
Landlord is obligated to provide a certain thing or that an obligation is at
the expense of or at the cost of Landlord. 
No other costs besides those charged pursuant to the Manufacturing
Services Agreement will be imposed on Tenant for occupation and use of the
Premises pursuant to this Lease.

 

ARTICLE 4

TAXES

 

4.1                       Real
Estate Taxes.  Landlord shall pay,
prior to delinquency, all real estate taxes and assessments, general or
special, which at any time during the Term may be assessed,

 

3

 

levied, imposed upon, or grow or become due
and payable out of or in respect of, the Premises (the “Real Estate
Taxes”).

 

4.2                       Personal
Property Taxes.  Landlord and Tenant
shall cooperate in the filing of personal property tax returns and payment of
all taxes, charges, and other governmental impositions assessed against, or
levied upon, Tenant’s trade fixtures, furnishings, equipment, and other
personal property, if any (collectively, “Tenant’s Personal Property”),
located upon the Premises. 
Notwithstanding the preceding sentence, the Party to this Agreement that
is the owner of record of Tenant’s Personal Property shall pay, prior to
delinquency, all aforementioned taxes, charges and other governmental
impositions assessed against Tenant’s Personal Property.

 

ARTICLE 5

BUILDING SERVICES

 

5.1                       Services.  Landlord shall furnish all of the services to
Tenant that are necessary for its operations and production of the Product on
the Premises, in each case during such times and in such amounts and pursuant
to such standards as provided in the Manufacturing Services Agreement,
including but not limited to the following services:  (i) heating, ventilating and air
conditioning; (ii) all utilities, including, without limitation, electricity,
natural gas, telephone and water both for production and for sanitary uses;
(iii) oil free (or clean dry) air, vacuum, specialty gases, ultra pure water,
acid waste neutralization system and any other waste water treatment system
within the Building, (iv) janitor service; (v) security (vi) exhaust and
abatement systems; and (vii) maintenance of (A) the structural elements of the
Building, (B) the communications and network wiring serving the Building, (C)
the mechanical, electrical, plumbing and fire/life safety systems serving the
Building in general, (D) the Common Areas, and (E) the Building in general,
including without limitation the roof thereof.

 

5.2                       Interruption
of Services.  Landlord shall be
liable to Tenant as a result of the interruption of any services provided
pursuant to Section 5.1 only (i) to the extent that such interruption is caused
by Landlord, any of its agents, partners, employees, invitees or contractors,
and (ii) by a claim brought under the Manufacturing Services Agreement, which
claim shall be subject to limitations set forth in Article 12 thereof.

 

ARTICLE 6

USE; COMPLIANCE WITH LAWS

 

6.1                       Use.  Tenant agrees that it shall occupy and use
the Premises only for the purposes as contemplated by the Manufacturing
Services Agreement and ancillary uses and for no other purposes (the “Permitted Use”). 
Landlord shall provide and maintain all occupancy related licenses and
permits legally necessary for the operation of the business within the
Building, which excludes, without limitation, any intellectual property
licenses relating to Tenant’s business. 
Tenant acknowledges that Landlord shall have access to and shall use the
Premises as provided in the Manufacturing Services Agreement.

 

6.2                       Compliance
with Law. Tenant shall comply with all
Applicable Laws as defined in the Master Agreement in its use of the Premises.

 

4

 

6.3                       Compliance
with Insurance Requirements.  Tenant
further agrees to obey and fully comply with all requirements and provisions of
any and all insurance policies which Landlord maintains, and shall not make or
permit any use of the Premises, or permit to be done anything in or upon the
Premises or the Building, or bring or keep anything in the Premises or the
Building, which may invalidate or increase the rate of insurance on the
Building, its appurtenances, contents or operations.

 

6.4                       No
Tenant Duties.  Landlord acknowledges
and agrees that Tenant shall have no duties or obligations with respect to the
repair and/or maintenance of the Premises and that, except as may be otherwise
provided in the Manufacturing Services Agreement, Landlord is solely responsible
for the operations within the Premises. 
Notwithstanding the foregoing, Landlord acknowledges and agrees that any
officer or employee of Tenant may, at any time, have access to the Premises.

 

ARTICLE 7

TENANT’S INSURANCE AND INDEMNITY

 

7.1                       Property
Insurance.  Except as set forth in
Section 7.3, at its expense, Tenant shall maintain property insurance insuring
Tenant’s tenant improvements in the Premises and Tenant’s personal property
against loss due to causes typically insured against under “all risk” or “special
causes of loss” policy forms, at a limit equal to the full insurable
replacement cost of such improvements and personal property, with coinsurance
waived and permitting the insured to waive subrogation rights prior to loss.

 

7.2                       Liability
Insurance.  Except as set forth in
Section 7.3, at its expense, Tenant shall, commencing on the first day of the
Term and continuing throughout the entire Term maintain or cause to be
maintained, under the provisions of the Manufacturing Services Agreement or otherwise,
for the benefit of Landlord, Landlord’s lender, if any, and Tenant as their
interests may appear, a comprehensive commercial public liability insurance
policy against such risks as are customarily insured against which arise out of
the use, occupancy, repair, maintenance or alteration of the Premises and all
areas appurtenant thereto, including liability for the acts of Tenant’s
independent contractors with regard to any activities of such independent
contractors.  Such insurance shall have a
minimum limit of ten million dollars ($10,000,000) per occurrence for bodily
injury and property damage combined.

 

7.3                       Member
Insurance Programs.  Upon mutual
agreement of the parties, Tenant may satisfy its obligations under Section 7.1
and/or Section 7.2 by policies issued under any corporate insurance program(s)
maintained by any of Tenant’s members.

 

7.4                       Notice
of Cancellation.  Reasonable efforts
will be made to have all insurance required to be carried under this Article 7
not be subject to cancellation or material change without at least thirty (30)
days’ prior notice to Landlord and Landlord’s lender, if any, and such
insurance shall be with insurance companies reasonably acceptable to Landlord
and Landlord’s lender, if any, and shall name Landlord, Landlord’s lender, if
any, and Tenant as insureds, as their interests may appear.

 

5

 

7.5                       Evidence
of Insurance.  Prior to the
commencement of the Term of this Lease, or as soon as is reasonably practicable
after that date, Tenant shall provide at Landlord’s request to Landlord and
Landlord’s lender, if any, certificates of the insurance policies referred to
in this Article 7.  Tenant also shall
furnish annually, to Landlord and Landlord’s lender, if any, throughout the
Term, certificates of renewals of such policies.

 

7.6                       Landlord’s
Rights.  If Tenant fails to procure,
maintain and/or pay for, at the times and for the durations specified in this
Lease, the insurance required under this Article 7, Landlord may (but without
obligation to do so), without notice to Tenant, perform such obligations on
behalf of Tenant, and the cost thereof shall immediately become due and payable
to Landlord.

 

7.7                       Indemnity
of Landlord by Tenant.  Subject to
the provisions of the Manufacturing Services Agreement, Tenant shall indemnify,
defend and save Landlord, its affiliates, partners, shareholders, members,
directors, officers, employees and agents harmless from and against all losses,
claims, costs, liabilities, fines and penalties of any nature (including,
without limitation, reasonable attorneys’ fees and expenses) (collectively, “Claims”) arising or occurring, from and after the date of
this Lease, out of (i) Tenant’s failure to comply with the terms and conditions
set forth in this Lease, (ii) any personal injury or death, damage to or
destruction of the Land or Building caused by the gross negligence or willful
acts or omissions of Tenant or its representatives and/or (iii) any other Claim
made by any affiliate, partner, member, director, officer, employee, visitor,
invitee, licensee or lessee of Tenant against Landlord arising out of Tenant’s
use of the Land or Building; provided, however, that for the purposes of this
section, in no event shall the actions or omissions of Landlord pursuant to the
Manufacturing Services Agreement be deemed to be gross negligence or willful
acts or omissions of Tenant.

 

ARTICLE 8

LANDLORD’S INSURANCE REQUIREMENTS

 

8.1           Property
Insurance.  Landlord shall maintain
property insurance insuring the Premises against loss due to causes typically
insured against under “all risk” or “special causes of loss” policy forms, at a
limit equal to the full insurable replacement cost of the Building, with
coinsurance waived and permitting the insured to waive subrogation rights prior
to loss.

 

8.2           Liability
Insurance.  At its sole cost and
expense, Landlord shall, commencing on the first day of the Term and continuing
throughout the entire Term maintain for the benefit of Landlord, Landlord’s
lender, if any, and Tenant as their interests may appear, a comprehensive
commercial public liability insurance policy against such risks as are
customarily insured against which arise out of Landlord’s activities relating
to the Premises including liability for the acts of Landlord’s independent
contractors with regard to any activities of such independent contractors.  Such insurance shall have a minimum limit of
ten million dollars ($10,000,000) per occurrence for bodily injury and property
damage combined.

 

8.3           Indemnity
of Tenant by Landlord.  Landlord
shall indemnify, defend and save Tenant, its affiliates, partners,
shareholders, members, directors, officers, employees and agents harmless from
and against all Claims arising or occurring, from and after the date of this
Lease, out of (i) Landlord’s failure to comply with the terms and conditions
set forth in this Lease

 

6

 

(except as otherwise provided in Section
5.2), (ii) any personal injury or death, damage to or destruction of the
Premises, Tenant’s tenant improvements and Tenant’s personal property caused by
the gross negligence or willful acts or omissions of Landlord or its
representatives and/or (iii) any other Claim made by any affiliate, partner,
member, director, officer, employee, visitor, invitee, licensee or lessee of
Landlord against Tenant arising out of Landlord’s gross negligence or willful
misconduct.

 

8.4                       Limitation
on Tenant’s Claims.  Notwithstanding
anything in this Lease to the contrary, if Tenant has any claim under this
Lease against Landlord, for indemnity or otherwise, Tenant shall be required to
bring such claim under another Joint Venture Document (as defined in the Master
Agreement) and not under this Lease if such claim can be made under such other
Joint Venture Document (notwithstanding that recovery under such claim may be
subject to deductibles, caps or limitations on survival set forth therein);
provided, however, that this limitation shall not apply to claims made by
Tenant against Landlord for damage to buildings, improvements, fixtures and
manufacturing tools and equipment.

 

ARTICLE 9

WAIVER OF SUBROGATION

 

Any other provisions of this Lease to the
contrary notwithstanding, if (a) either party shall suffer any loss required to
be insured against hereunder or (b) any portion of the Premises or Tenant’s
trade fixtures, equipment or other personal property in the Premises shall be
damaged or destroyed by fire, explosion or other casualty required to be
insured against hereunder, whether or not such loss, damage or destruction is
caused, or claimed to be caused, by the negligence or misconduct of Landlord or
Tenant, or any of their respective managers, members, officers, employees,
agents, contractors or invitees, neither Landlord, Tenant nor their respective
insurance company(ies), shall have any right of action, by way of subrogation
or otherwise, against Tenant or Landlord, or any of their respective managers,
members, officers, employees, agents, contractors or invitees, arising from
such damage or destruction, and each policy of insurance required pursuant to
this Lease shall provide a waiver and release by the insurer of any such
right.  Landlord and Tenant further agree
that during or after Tenant’s occupancy of the Premises, each will indemnify
and hold the other harmless from any claim against the other made by way of
subrogation by Landlord’s or Tenant’s liability and property insurance
carrier(s).

 

ARTICLE 10

ALTERATIONS

 

10.1                     Requirements.  Tenant may not make any replacement,
alteration, improvement or addition to or removal from the Premises
(collectively an “alteration”)
without the prior written consent of Landlord, such consent not to be withheld
if the alteration is commercially reasonable; provided, however, that Tenant
may make any alterations necessary or desirable in order for the services to be
provided under the Manufacturing Services Agreement.  Tenant agrees that each alteration shall be
performed in a good and workmanlike manner, and shall meet or exceed the
standards for construction and quality of materials established by Landlord for
the Building.  In addition, each
alteration shall be performed in compliance with all Applicable Laws. Each
alteration, whether temporary or permanent in character, made by

 

7

 

Landlord or Tenant in or upon the Premises
shall become Landlord’s property and shall remain upon the Premises at the
expiration or termination of this Lease without compensation to Tenant.  Tenant shall not be obligated to remove such
alterations at the end of the Term. 
Notwithstanding anything to the contrary contained in this Section 10.1,
alterations do not include the Associated Assets (as defined in Section 20.1
below) that Tenant may remove as provided in Section 20.1.

 

10.2                     Covenant
Against Liens.  Tenant shall not
cause or permit any lien or encumbrance of any kind whatsoever, whether created
by act of Tenant, operation of law or otherwise, to attach to or be placed upon
Landlord’s title or interest in the Building or the Premises, and any and all
liens and encumbrances created by Tenant shall attach to Tenant’s interest
only.  Tenant covenants and agrees not to
suffer or permit any liens to be placed against the Building or the Premises as
a result of work performed or materials supplied by or on behalf of Tenant and
in case of any such lien attaching or claim thereof being asserted, Tenant
covenants and agrees no later than forty-five (45) days from notice to Tenant
of the filing thereof to (i) cause it to be released and removed of record,
(ii) deliver to Landlord a surety bond in an amount sufficient to discharge the
lien, or (iii) provide Landlord, with endorsements (satisfactory to Landlord)
to Landlord’s title insurance policy insuring against the existence of or
attempted enforcement of such lien.  In
the event that such lien is not released, removed, or bonded or insured over
within said forty-five (45) day period, Landlord, at its sole option, may take
all action necessary to release and remove such lien (without any duty to
investigate the validity thereof) and Tenant shall, within ten (10) days
following notice, either before or after such release and removal, pay or
reimburse Landlord for all sums, costs and expenses (including, without
limitation, reasonable attorneys’ fees and court costs) incurred by Landlord in
connection with removal of such lien.

 

ARTICLE 11

CASUALTY

 

11.1                     Damage.  If the Premises, or so much thereof as to
cause the Premises to be unusable in furtherance of the terms of the
Manufacturing Services Agreement, are damaged by any casualty so as to cause
the Premises to be uninhabitable, and the damage (exclusive of any property or
improvements installed by Tenant in the Premises) can be repaired in Landlord’s
reasonable judgment within one hundred eighty (180) days without the payment of
an amount more than 120% of the amount of insurance proceeds, Tenant shall
waive all rights to any insurance proceeds therefor in favor of Landlord, and
Landlord shall repair such damage as soon as practicable and this Lease shall
continue in full force and effect. 
Landlord agrees to give Tenant written notice within sixty (60) days
after the occurrence of any such damage or destruction indicating the
anticipated time period of such restoration (the “Repair
Estimate”).  If the Premises,
or so much of thereof as to cause the Premises to be unusable in furtherance of
the terms of the Manufacturing Services Agreement, are damaged by any casualty,
and the damage (exclusive of any property or improvements installed by Tenant
in the Premises) cannot be repaired in Landlord’s reasonable judgment within
one hundred eighty (180) days without the payment of an amount more than 120%
of the amount of insurance proceeds, Landlord may give Tenant written notice
within thirty (30) days after Landlord delivers to Tenant its Repair Estimate
of Landlord’s intention to terminate this Lease, in which event this Lease
shall terminate as of the date of the occurrence of such damage.

 

8

 

11.2                     Insurance
Proceeds Upon Termination.  If this
Lease is terminated as permitted under Section 11.1, all insurance proceeds
payable with respect to the damage giving rise to such right of termination
shall be paid to Landlord or Landlord’s lender, if any.

 

ARTICLE 12

CONDEMNATION

 

12.1                     Notice.  Landlord and Tenant shall each notify the
other if either party becomes aware that any portion of the Premises will be
taken in condemnation proceedings or by exercise of any right of eminent domain
(any such action being hereinafter referred to as a “Taking”),
or if it becomes aware of the commencement of any proceedings which might
result in a Taking.

 

12.2                     Taking.  In the event of the Taking of all or any
portion of the Premises renders the Premises unsuitable for Tenant’s business
objectives, Tenant, at its sole election, may terminate this Lease as of the
date of such Taking.  In the event Tenant
chooses not to terminate this Lease, the portion of the Premises so taken shall
be excluded from the definition of the Premises hereunder, and this Lease shall
continue in full force and effect as to the remainder of the Premises.

 

12.3                     Award. 
Tenant shall be entitled to all condemnation awards granted on account
of the Taking of all or any portion of the Premises.

 

ARTICLE 13

ASSIGNMENT AND SUBLETTING

 

13.1                     No
Landlord Assignment. Landlord shall not have the right to transfer, assign
or convey, in whole or in part, the Land or the Building or any or all of its
rights under this Lease; provided, however, that such prohibition
shall not apply to (i) any transfer, assignment or conveyance by Landlord to an
Affiliate (as defined in the Operating Agreement) of Landlord, (ii) any leases
of any portion of the Land or the Building other than the Premises to any third
party provided that such lease does not materially adversely affect the
operation of the Tenant’s business at the Premises and is to a third party who
is not manufacturing and is only providing
services or supplies incidental to
Landlord’s operations, or (iii) the granting of any mortgage, deed of trust, or
similar encumbrances as security for indebtedness.  For purposes hereof, transfer, assign or
convey shall not include any reorganization which simply results in a change in
the state of incorporation and Micron continues to hold the Land and Building,
any recapitalization in which Micron continues to hold the Land and Building or
any merger or change of control of Landlord.

 

13.2                     No
Tenant Assignment.  Tenant shall not
have the right to transfer, assign or convey, in whole or in part, the Premise
or any or all of its rights under this Lease; provided, however,
that such prohibition shall not apply to any transfer, assignment or conveyance
by Tenant to an Affiliate of Tenant.

 

9

 

ARTICLE 14

DEFAULT

 

14.1                     Tenant’s
Default.  The occurrence of any of
the following shall constitute a default (a “Default”)
by Tenant under this Lease:  (i) Tenant
is in default under the terms of the Manufacturing Services Agreement; (ii)
Tenant effects or attempts to effect a Transfer without Landlord’s consent;
(iii) Tenant fails to perform any other provision of this Lease and such
failure is not cured within thirty (30) days after written notice thereof is
given to Tenant (or immediately if the failure involves a hazardous or
dangerous condition), provided that in the event such matter does not involve a
hazardous or dangerous condition and cannot be reasonably cured within such
thirty (30) day period despite Tenant’s diligent efforts then Tenant shall be
permitted such reasonable time as reasonably required to cure such default,
provided that Tenant has commenced such cure within the thirty (30) day period
and diligently prosecutes such cure to completion; (iv) the leasehold interest
of Tenant is levied upon or attached under process of law; or (v) any voluntary
or involuntary proceedings are filed by or against Tenant under any bankruptcy,
insolvency or similar laws and, in the case of any involuntary proceedings, are
not dismissed within sixty (60) days after filing.

 

14.2                     Landlord’s
Remedies.  In the event of a Tenant
Default and Tenant fails to cure such Default within a commercially reasonable
period of time after receipt of written notice from Landlord, Landlord shall
have the right to cure such Default and thereafter be reimbursed by Tenant
within thirty (30) days after receipt of an invoice together with appropriate
backup documentation.  In the event a
Tenant Default cannot be reasonably cured by Landlord and such Default
materially adversely affects the Premises or the Building (a “Tenant Material
Default”), Tenant agrees that Landlord shall be entitled to obtain specific
performance and any other equitable remedy available by law.  Notwithstanding any Tenant Default or Tenant
Material Default, Landlord shall not be entitled to terminate this Lease except
as provided in Section 2.1(i), (ii), (iii) or (iv) above.

 

14.3                     Landlord’s
Default and Tenant’s Remedies.  In
the event that Landlord defaults under any provisions of this Lease and fails
to cure such default within a commercially reasonable period of time after
receipt of written notice from Tenant, in addition to any and all remedies that
Tenant may have at law or equity, including without limitation specific
performance, Tenant shall have the right to cure such default and thereafter be
reimbursed by Landlord within thirty (30) days after receipt of an invoice
together with appropriate backup documentation. 
In the event of a Landlord Event of Default (as defined in Section 13.2
of the Operating Agreement), Tenant shall also have the rights and remedies
specified in Article 13 of the Operating Agreement.

 

14.4                     No
Other Remedies.  The remedies of each
party shall only be as provided in Section 14.2 and 14.3 hereof and neither
party shall be entitled to any other right or remedy otherwise available to
such party.

 

10

 

ARTICLE 15

NOTICES

 

Any notice,
summons or other process of notification to be served under the Lease or in
connection with any proceeding or action arising out of this Lease or the
tenancy created thereby shall be provided to the addresses and in the manner as
set forth in the Manufacturing Services Agreement.

 

ARTICLE 16

REAL ESTATE BROKERS

 

Tenant warrants and represents to Landlord that
no commission, fee or other compensation is or will become due and payable to
any real estate broker, salesman, consultant, finder or agent it has hired as a
result of the creation of this Lease or any transaction described in this
Lease.  Landlord warrants and represents
to Tenant that no commission, fee or other compensation is or will become due
and payable to any real estate broker, salesman, consultant, finder or agent it
has hired as a result of the creation of this Lease or any transaction described
in this Lease.

 

ARTICLE 17

NO WAIVER

 

No waiver of any condition or covenant of
this Lease or of the breach of any such covenant or condition shall be deemed
to constitute a waiver of any subsequent breach of such covenant or condition
or to justify the non-observance on any other occasion of the same or of any
other covenant or condition hereof.

 

ARTICLE 18

ESTOPPEL CERTIFICATES

 

Tenant agrees that, from time to time upon
not less than twenty (20) days’ prior request by Landlord, Tenant shall execute
and deliver to Landlord a written certificate certifying:  (i) that this Lease is unmodified and in full
force and effect (or if there have been modifications, a description of such
modifications and that this Lease as modified is in full force and effect);
(ii) whether Tenant is in possession of the Premises, if that is the case;
(iii) that to Tenant’s knowledge Landlord is not in default under this Lease,
or, if Tenant believes Landlord is in default, the nature thereof in detail;
(iv) that to Tenant’s knowledge Tenant is not in default under this Lease; (v)
that Landlord is not obligated to perform any tenant improvement work in the
Premises, (vi) that to Tenant’s knowledge Tenant has no off-sets or defenses to
the performance of its obligations under this Lease (or if Tenant believes
there are any off-sets or defenses, a full and complete explanation thereof);
and (vii) such additional matters as may be reasonably requested by Landlord,
it being agreed that such certificate may be relied upon by any prospective
purchaser, mortgagee or other person having or acquiring an interest in the
Building, the Premises, or any portion thereof.

 

11

 

ARTICLE 19

SUBORDINATION

 

This Lease is and shall be expressly subject
and subordinate at all times to the lien of any present or future mortgage or
deed of trust encumbering fee title to the Land or the Building. The foregoing
provision is declared to be self-operative and no further instruments shall be
required to effect such subordination and/or attornment; provided, however,
that Tenant agrees upon request by any such mortgagee, beneficiary, lessor or
purchaser at foreclosure or transfer, as the case may be, to execute such
reasonable subordination and/or attornment instruments as may be required by
such person to confirm such subordination and/or attornment on the reasonable
form customarily used by such party. 
Notwithstanding anything to the contrary contained herein, Tenant’s
agreement to subordinate this Lease shall not be effective unless and until the
mortgagee, beneficiary or lessor, as the case may be, shall execute and deliver
to Tenant a commercially reasonable non-disturbance agreement providing, among
other things, that if any mortgage is foreclosed (or if the Land or the
Building is transferred in lieu of foreclosure), such mortgagee or purchaser
shall agree to accept this Lease and not disturb Tenant’s occupancy (so long as
Tenant is not in default hereunder beyond all applicable notice and cure
periods).

 

ARTICLE 20

SURRENDER; [***]; ACQUISITION

 

20.1                     Surrender.  Upon termination of the Term for any reason,
(i) Tenant shall return the Premises to Landlord broom clean, in good order and
condition, ordinary wear and tear excepted, in compliance with all Applicable
Laws; provided, however, that Tenant shall not be responsible to remove any
residue or other materials within pipes, ducts, utilities and treatment
facilities within the Building.  In the
event that Landlord does not exercise the Micron [***] Purchase Option (as
defined in the Operating Agreement) to purchase [***] owned by Tenant, Tenant
and its members shall, subject to Section 20.2 below, have the right for a
period of up to sixty (60) days after the expiration of the Micron [***]
Purchase Option, to remove all or any portion of [***].  Tenant shall not be obligated to [***] at the
end of the Term.

 

20.2                     Repair.  In the event that Tenant shall damage the
Building in connection with the removal of any Associated Assets owned by
Tenant, Tenant shall, at its expense, repair such damage to return the Building
to its former condition, reasonable wear and tear excepted.

 

ARTICLE 21

APPLICABLE LAW AND CONSTRUCTION

 

21.1                     Governing
Law.  This Lease shall be governed by
the laws of the State of Delaware as to all matters other than those matters
pertaining to real property which are customarily governed by the laws of the
State where the Premises is located.

 

21.2                     Independent
Provisions.  Any provision of this
Lease which is contrary to a law, which the parties cannot legally waive or
contract against (such, for example, as labor laws and anti-trust laws) is and
shall be void and not binding on either party hereto; provided,

 

12

 

however, that the invalidity or unenforceability
of any provision of this Lease shall not affect or impair any other provision
of this Lease.

 

ARTICLE 22

QUIET ENJOYMENT

 

Landlord hereby covenants and agrees that if
Tenant shall perform all of the covenants and agreements herein stipulated to be
performed on Tenant’s part, Tenant shall at all times during the continuance
hereof have peaceable and quiet enjoyment and possession of the Premises
without hindrance from Landlord or any person or persons lawfully claiming the
Premises.

 

ARTICLE 23

SUCCESSORS AND ASSIGNS

 

The terms, conditions and agreements of this
Lease and all rights and obligations herein given to or imposed upon the
parties hereto shall bind and inure to the benefit of the respective heirs,
executors, administrators, successors and permitted assigns of the parties
hereto.  No rights, however, shall inure
to the benefit of any assignee of a Party unless the assignment to such
assignee has been approved (if required) by the other Party.

 

ARTICLE 24

MISCELLANEOUS

 

24.1                     Execution
and Delivery.  Submission of this
instrument for examination or signature by Tenant does not constitute a
reservation of space or an option for lease, and it is not effective until
execution and delivery by both Landlord and Tenant.

 

24.2                     Memorandum
of Lease.  This Lease shall not be
recorded, either independently or as an exhibit, schedule, annex, or addendum
to any other document.  However, a
Memorandum of Lease, in substantially the form attached hereto as Exhibit D,
shall be executed, acknowledged and delivered for recording by both
parties.  The cost of such recording
shall be divided equally between the parties.

 

24.3                     Captions.  The headings and titles in this Lease are for
convenience only and shall have no effect upon the construction or
interpretation of this Lease.

 

24.4                     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 Lease shall be brought in a state or federal
court located in Delaware and each of the parties to this Lease 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 Laws, 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.  Process in any such
suit, action or proceeding may be served on any party anywhere in the world,
whether within or without the jurisdiction of any such court.

 

13

 

24.5                     Due
Authority.  The individuals executing
this Lease represent and warrant to each party that they have full right, power
and authority to execute this Lease on behalf of such party.

 

24.6                     Only
Landlord/Tenant Relationship. 
Nothing contained herein shall be deemed or construed by the
parties hereto nor by any third party, as creating the relationship of
principal and agent or of partnership or of joint venture between the parties
hereto or any other relationship, other than the relationship of Landlord and
Tenant.

 

24.7                     Counterparts.  This Lease may be executed in one or more
counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same instrument.

 

24.8                     Construction.  Any reference to any Applicable Law shall be
deemed also to refer to all rules and regulations promulgated thereunder unless
the context requires otherwise.  Whenever
required by the context, any gender shall include any other gender, the
singular shall include the plural and the plural shall include the
singular.  The words “herein,” “hereof,” “hereunder,”
and words of similar import refer to this Lease as a whole and not to a
particular section.  Whenever the word “including”
is used in this Lease, it shall be deemed to mean “including without
limitation,” “including, but not limited to” or other words of similar import
such that the items following the word “including” shall be deemed to be a list
by way of illustration only and shall not be deemed to be an exhaustive list of
applicable items in the context thereof. 
References to Sections and Exhibits in this Lease are references to
Sections of, and Exhibits to, this Lease unless otherwise indicated.

 

24.9                     Entire
Agreement.  This Lease, the Master
Agreement, the Manufacturing Services Agreement, and the Operating Agreement
sets forth all of the covenants, promises, agreements, conditions, and
understandings of the parties hereto with respect to the Premises.  No alteration, modification, amendment,
change or addition to this Lease shall be effective unless the same shall be
reduced to writing and signed by both parties hereto.

 

24.10                   Time
is of the Essence.  Time is of the
essence in the performance of all terms and conditions of this Lease in which
time is an element.

 

24.11                   Confidentiality.  Landlord
and Tenant shall abide by the terms of that certain Mutual Confidentiality
Agreement among Landlord, Tenant and Intel dated as of the Effective Date of
the Operating Agreement, and as may be amended or replaced from time to time
(the “Confidentiality Agreement”), which agreement
is incorporated herein by reference. 
Landlord and Tenant agree that the Confidentiality Agreement shall
govern the confidentiality, non-disclosure and non-use obligations between the
parties respecting the information provided or disclosed pursuant to this
Lease.  If the Confidentiality Agreement
is terminated or expires and is not replaced, such Confidentiality Agreement
shall continue with respect to confidential information provided in connection
with this Lease, notwithstanding such expiration or termination, for the
duration of the Term of this Lease or until a new Confidentiality Agreement is
entered into between the Landlord and Tenant. 
To the extent there is a conflict between this Lease and the Confidentiality
Agreement, the terms of this Lease shall control.  This Lease and its terms shall be deemed “Confidential
Information” under the Confidentiality Agreement.

 

14

 

24.12                   Damages
Limitation.  EXCEPT AS PROVIDED
BELOW, IN NO EVENT SHALL EITHER PARTY BE LIABLE TO THE OTHER PARTY FOR ANY
SPECIAL, CONSEQUENTIAL, INCIDENTAL OR OTHER INDIRECT DAMAGES OR ANY PUNITIVE OR
EXEMPLARY DAMAGES ARISING OUT OF OR IN CONNECTION WITH THIS AGREEMENT, WHETHER
SUCH DAMAGES ARE BASED ON BREACH OF CONTRACT, TORT (INCLUDING NEGLIGENCE) OR
OTHER THEORY OF LIABILITY, AND EVEN IF A PARTY HAS BEEN ADVISED OF THE
POSSIBILITY OF SUCH DAMAGES. 
NOTWITHSTANDING THE FOREGOING, SUCH LIMITATION SHALL NOT APPLY TO EITHER
PARTY’S BREACH OF SECTION 24.11.  EACH
PARTY SHALL HAVE A DUTY TO USE COMMERCIALLY REASONABLE EFFORTS TO MITIGATE
DAMAGES FOR WHICH THE OTHER PARTY IS RESPONSIBLE.

 

24.13                   Indemnification
Procedures.

 

(a)           If any person who or which is entitled to seek
indemnification under this Lease (an “Indemnified Party”)
obtains knowledge of, or receives notice of, any Claim against the person
against whom or which such indemnification is being sought hereunder (an “Indemnifying Party”), the Indemnified Party will give such
Indemnifying Party reasonably prompt written notice thereof, but in any event
not later than ten (10) days after knowledge or notice of such Claim.  Such notice by the Indemnified Party will
describe the Claim in reasonable detail, will include copies of all available
material written evidence thereof and will indicate the estimated amount, if
reasonably practicable, of the damages that have been or may be sustained by
the Indemnified Party.  The Indemnifying
Party will have the right to participate in, or, by giving written notice to
the Indemnified Party, to assume, the defense of any Claim at such Indemnifying
Party’s own expense and by such Indemnifying Party’s own counsel (reasonably
satisfactory to the Indemnified Party), and the Indemnified Party will
cooperate in good faith in such defense.

 

(b)           If,
within ten (10) days after giving notice of a Claim to an Indemnifying Party
pursuant to Section 24.13(a), an Indemnified Party receives written notice
from the Indemnifying Party that the Indemnifying Party has elected to assume
the defense of such Claim as provided in the last sentence of
Section 24.13(a), the Indemnifying Party will not be liable for any legal
expenses subsequently incurred by the Indemnified Party in connection with the
defense thereof; provided, however, that if the Indemnifying Party fails to
take reasonable steps necessary to defend diligently such Claim within
ten (10) days after receiving written notice from the Indemnified Party
that the Indemnified Party believes the Indemnifying Party has failed to take
such steps or if the Indemnifying Party has not undertaken fully to indemnify
the Indemnified Party in respect of all damages relating to the matter, the
Indemnified Party may assume its own defense, and the Indemnifying Party will
be liable for all reasonable costs and expenses paid or incurred in connection
therewith and the Indemnified Party may employ separate counsel, and the
Indemnifying Party will bear the expenses of such separate counsel, if in the
written opinion of counsel to the Indemnified Party use of counsel of the Indemnifying
Party’s choice would be expected to give rise to a conflict of interest.  Without the prior written consent of the
Indemnified Party, the Indemnifying Party will not enter into any settlement of
any Claim that would lead to loss, liability or create any financial or other
obligation on the part of any Indemnified Party for which such Indemnified
Party is not entitled to indemnification

 

15

 

hereunder, or which provides for injunctive
or other non-monetary relief applicable to any Indemnified Party, or does not
include an unconditional release of all Indemnified Parties.

 

(c)           A failure to give timely notice or to include any
specified information in any notice as provided in Sections 24.13(a) or
(b) will not affect the rights or obligations of any party hereunder, except
and only to the extent that, as a result of such failure, any party that was
entitled to receive such notice was materially prejudiced as a result of such
failure

 

(d)           Notwithstanding anything to the contrary contained
herein, Landlord and Tenant agree that, for the purposes of this section, in no
event shall the actions or omissions of Landlord pursuant to the Manufacturing
Services Agreement be deemed acts or omissions of Tenant.

 

24.14                   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. 
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 the other party specifying the obligation to be excused and
describing the events or conditions constituting the Force Majeure Event.  As used herein, “Force Majeure Event” means
the occurrence of an event or circumstance beyond the reasonable control of the
party failing to perform, including, without limitation, (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 federal, state, local or foreign governmental authorities or courts;
(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’s nonperformance hereunder.

 

Signature Page Follows

 

16

 

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

 

	
   

  	
  MICRON TECHNOLOGY, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ STEVEN R. APPLETON

  	
   

  
	
   

  	
  Name: Steven R. Appleton

  
	
   

  	
  Title: Chief Executive Officer and
  President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  IM FLASH TECHNOLOGIES, LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ DAVID A. BAGLEE

  	
   

  
	
   

  	
  Name: David A. Baglee

  
	
   

  	
  Title: Authorized Officer

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ RODNEY MORGAN

  	
   

  
	
   

  	
  Name: Rodney Morgan

  
	
   

  	
  Title: Authorized Officer

  

 

 

THIS IS THE SIGNATURE PAGE FOR THE MTV LEASE
AGREEMENT

ENTERED INTO BY AND BETWEEN MICRON
TECHNOLOGY, INC. AND

IM FLASH TECHNOLOGIES, LLC

 

17

 

Exhibit A

 

Legal Description of Land

 

 

All of that certain lot, piece or parcel of land lying, being and
situate in the City of Manassas, Virginia, being more particularly described as
follows:

 

Parcel “B”, consisting of 123.5353 acres, more or less, a Subdivision
of the Property of International Business Machines Corporation, as the same is
shown on a plat attached to the Deed of Subdivision recorded in Deed Book 2119
at page 1774 among the land records of Prince William County, Virginia.

 

LESS AND EXCEPT the “overhead industrial waste discharge lines” and
associated fixtures attached thereto, as shown on the plat dated December 13,
1995, made by Ross, France & Ratliff, Ltd. entitled “Composite Plat Showing
Overhead Industrial Waste Discharge Lines Parcel B”, a copy of which plat is
attached to and recorded with a deed dated December 11, 1995 and recorded in
Deed Book 2297 at page 1711, said plat recorded in Map Drawer 170 at page 121.

 

ALSO LESS AND EXCEPT 0.1190 acres, more or less, dedicated for public
use for street purposes and conveyed to the City of Manassas by Deed of
Dedication and Deed of Easement recorded in Deed Book 2333 at page 1035.

 

AND BEING a portion of the same property which was conveyed to Dominion
Semiconductor L.L.C., a Virginia limited liability company, by Special Warranty
Deed from Virginia LLC Holding, Inc., a Virginia corporation, dated February 5,
1996 and recorded February 7, 1996 in Deed Book 2309 at page 1638 in the Clerk’s
Office of the Circuit Court of Prince William County, Virginia.

 

TOGETHER WITH those certain permanent, non-exclusive easements for
ingress and egress over and across Parcel A, which parcel is shown on plat
attached to Deed of Subdivision recorded in Deed Book 2119 at page 1774, as
more particularly set forth in Reciprocal Ingress and Egress Access Easements
and Agreement of Indemnification by Dominion recorded in the aforesaid Clerk’s
Office on December 26, 2001 as Instrument No. 200112260137848.

 

FURTHER TOGETHER WITH that certain permanent, non-exclusive domestic
sanitary sewer easement and right-of-way thereto across said Parcel A, as more
particularly set forth in Domestic Sanitary Sewer Easement recorded in the
aforesaid Clerk’s Office on December 26, 2001 as Instrument No.
200112260137840.

 

FURTHER TOGETHER WITH that certain permanent, non-exclusive sixty-five
(65) ft. wide easement and right-of-way for the transmission of domestic water
supply, fire system water supply and sanitary sewer flows by underground
pipelines, and the transmission of industrial chemicals and utility services by
overhead trestle over said Parcel A, as more particularly set forth in Building
130 Utility, Chemical Transmission and Access Easement and Agreement of

 

18

 

Indemnification by Dominion recorded in the aforesaid Clerk’s Office on
December 26, 2001 as Instrument No. 200112260137846.

 

FURTHER TOGETHER WITH that certain permanent, non-exclusive fire
protection water supply line and maintenance easement and right-of-way thereto
across said Parcel A as more particularly set forth in Fire Protection Water
Supply Line and Maintenance Easement recorded in the aforesaid Clerk’s Office
on December 26, 2001 as Instrument No. 200112260137852.

 

FURTHER TOGETHER WITH that certain permanent, non-exclusive easement
for ingress and egress to and from the public road, i.e., Godwin Drive
(Virginia State Route 661) over and across said Parcel A as more particularly
set forth in Ingress and Egress Access Easement recorded in the aforesaid Clerk’s
Office on December 26, 2001 as Instrument No. 200112260137856.

 

BEING the same property conveyed to Micron Technology, Inc., a Delaware
corporation, by Special Warranty Deed from Dominion Semiconductor L.L.C., a
Virginia limited liability company, dated April 22, 2002 and recorded April 22,
2002 among the land records of Prince William County, Virginia as Instrument
No. 200204220051249, recorded April 26, 2002 as Instrument No. 200204260053995.

 

19

 

Exhibit B

 

Depiction of the Premises

 

[Picture Showing Premises]

 

20

 

Exhibit C

 

Scope of Work

 

	
  SCOPE

  	
   

  	
  Estimated

  Start

  	
   

  	
  Estimated

  Finish

  	
   

  
	
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21

 

Exhibit D

 

Memorandum of Lease

 

When recorded, return to:

Jones Waldo Holbrook & McDonough, P.C.

170 S. Main Street, Suite 1500

Salt Lake City, Utah  84101-1622

Attn:  Glen D. Watkins

 

	
   

  
	
  Space above for recorder’s use

  

 

DEED OF LEASE

 

This Deed of
Lease is dated as of January 6, 2006, by and between IM Flash Technologies,
LLC, a Delaware limited liability company with an address at 1550 East 3400
North, Lehi, Utah 84043 (“Tenant”) and Micron Technology, Inc., a Delaware
corporation with an address at 8000 S. Federal Way, Mail Stop 1-507, Boise,
ID  83716 (“Landlord”).

 

1.   For
and in consideration of Ten Dollars ($10.00) and other good and valuable
consideration paid and exchanged between Landlord and Tenant, Landlord has
leased to Tenant and Tenant has leased from Landlord, a designated portion (as
shown on Exhibit A) of a certain building located at 9600 Godwin Drive,
Manassas, Virginia, 20110 (the “Building”), on property more particularly
described on Exhibit B attached hereto (the “Land”), pursuant to a
certain MTV Lease Agreement dated as of even date herewith between Landlord and
Tenant (the “Lease”).  Under the Lease
and in accordance with its terms, Tenant has the nonexclusive right to use the
Common Areas (as defined therein) that are located within the Building and on
the Land.

 

2.   The
term of the Lease commenced on the date hereof and expires, unless sooner
terminated as set forth in the Lease, on the tenth anniversary of the date
hereof; provided, however, that the term shall automatically
extend for a period coterminous with any Renewal Term as defined in that
certain Operating Agreement dated January 6, 2006 between Micron and Intel (the
“Term”).

 

3.   Landlord
and Tenant execute this Deed of Lease for purposes of recordation and notice of
the Lease and do not intend to change any provision of the Lease.

 

NOTE TO
RECORDER:  THIS INSTRUMENT IS EXEMPT
FROM THE STATE OF VIRGINIA RECORDATION TAX (AS IMPOSED BY § 58.1-801 OF
THE VIRGINIA CODE) PURSUANT TO § 58.1-811A(10) OF THE VIRGINIA CODE SINCE
THIS INSTRUMENT EVIDENCES A CONVEYANCE TO A LIMITED LIABILITY COMPANY WHERE THE

 

22

 

GRANTOR
(LANDLORD) IS ENTITLED TO RECEIVE NOT LESS THAN 50% OF THE PROFITS AND SURPLUS
OF SUCH LIMITED LIABILITY COMPANY.

 

 

IN WITNESS
WHEREOF, Landlord and Tenant have executed this Deed of Lease as of the date
first above written.

 

	
   

  	
  Micron Technology, Inc.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  IM Flash Technologies, LLC

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
						

 

	
  STATE OF

  	
  )

  
	
   

  	
  ) SS.

  
	
  COUNTY OF

  	
  )

  

 

Acknowledged
before me a Notary Public in and for the aforementioned County and State this      
day of January, 2006 by                                
the                                
of Micron Technology, Inc., a Delaware corporation, on behalf of such
corporation.

 

 

	
   

  
	
  Notary Public

  

 

	
  STATE OF

  	
  )

  
	
   

  	
  ) SS.

  
	
  COUNTY OF

  	
  )

  

 

Acknowledged
before me a Notary Public in and for the aforementioned County and State this      
day of January, 2006 by                                
the                                
of IM Flash Technologies, LLC, a Delaware limited liability company, on behalf
of such company.

 

	
   

  
	
  Notary Public

  

 

23

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