Document:

Exhibit 4.5

 

ESCROW
AGREEMENT

 

THIS ESCROW
AGREEMENT (this “Agreement”)
is made and entered into as of September 26, 2003, by and among 24/7 Real
Media, Inc. a Delaware corporation (the “Company”),
The Riverview Group, LLC, a Delaware limited liability company (the “Investor”), and The Bank of New York, a
New York banking institution (the “Escrow
Agent”).  The Company and
the Investor are sometimes collectively referred to herein as the “Parties” and individually as a “Party.”

 

W I T N E S
S E T H:

 

WHEREAS, the Company
and the Investor have entered into that certain Securities Purchase Agreement,
dated as of the date hereof (the “Purchase
Agreement”; capitalized terms used in this Agreement but not
defined herein shall have the meanings set forth in the Purchase Agreement),
pursuant to which the Investor has agreed to purchase, and the Company has
agreed to sell, an aggregate principal amount of $15,000,000 of Debentures and
related warrants;

 

WHEREAS, pursuant to
the Purchase Agreement and as part of the transactions contemplated thereby,
the Parties have agreed to enter into this Agreement and deposit the Escrow
Amount (hereinafter defined) with the Escrow Agent;

 

WHEREAS, the parties
hereto desire to more specifically set forth their rights and obligations with
respect to the Escrow Fund (hereinafter defined) and the distribution and
release thereof; and

 

WHEREAS, the execution
and delivery of this Agreement is a condition to the Parties’ obligations under
the Purchase Agreement.

 

NOW,
THEREFORE, in consideration of the mutual covenants set forth
herein and other good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, the parties to this Agreement hereby agree as
follows:

 

1.             Establishment of
Escrow.  Simultaneously
with the execution of this Agreement, the following has occurred, all of which
is hereby acknowledged by each of the Parties and the Escrow Agent:

 

(a)  Deposit of Escrow Amount.  The Company has deposited $12,000,000 with
the Escrow Agent (the “Escrow Amount”)
to be held in escrow in accordance with this Escrow Agreement.  The Escrow Amount shall be held by the
Escrow Agent in the Escrow Account (as defined below) in accordance with the
provisions of this Escrow Agreement and shall not be subject to any lien,
attachment, trustee process or any other judicial process of any creditor of
any party hereto.  The Escrow Amount,
together with all products and proceeds thereof (including all interest,
dividends, gains and other income earned with respect thereto) (the “Escrow Earnings”), are collectively
referred to herein as the “Escrow Fund.”

 

(b)  Escrow Account.  The Escrow Agent has received the Escrow Amount and agrees to
hold the Escrow Fund in a separate and distinct account (the “Escrow Account”), subject to the terms
and conditions of this Agreement.  The
Escrow Agent shall not distribute or release any of the Escrow Fund except in
accordance with the express terms and conditions of this Agreement.  The Escrow Agent shall furnish the Parties
with monthly statements in respect of the Escrow Account.

 

2.             Permitted
Investments.  The Escrow
Agent shall follow the written instructions of the Company concerning any
investment or reinvestment from time to time of 

 

1

 

the Escrow Funds held in the
Escrow Account (copies of all such written instructions shall be provided by
the Company to the Investor); provided that  permissible investments shall be limited to money market
accounts and money market mutual funds (including those of the Escrow Agent)
solely invested in treasury bills, treasury notes or any other direct
obligations issued by or guaranteed in full as to principal and interest by the
United States of America and certificates of deposit issued by a commercial bank
located in the United States and incorporated under the laws of the United
States or of any state and having capital, surplus and undivided profits of not
less than one hundred million dollars ($100,000,000) (including the Escrow
Agent and its affiliates) (the “Permitted
Investments”).  Neither
the Escrow Agent nor any Party shall be liable or responsible in any manner for
any loss or depreciation resulting from any such Permitted Investment or any
liquidation thereof, or for any costs in connection therewith, and all of said
losses and costs shall be borne by the Escrow Account.  In the absence of written instructions the
Escrow Agent shall invest all funds in the Fidelity US Treasury III Money
Market Mutual Fund.

 

3.     Release of Escrow Fund.  The Escrow Fund shall only be
distributed or released as follows:

 

(a)  Effectiveness of Registration
Statement.  In the event the
Registration Statement (as defined in the Registration Rights Agreement) is
declared effective by the SEC, the Company shall deliver to the Escrow Agent
and the Investor a written notice (an “Effectiveness
Notice”) containing a copy of the final order of the SEC
declaring the effectiveness of the Registration Statement.  The Company shall also deliver to the Escrow
Agent written proof of delivery to the Investor of a copy of such Effectiveness
Notice (which proof may consist of a photocopy of the registered or certified
mail or overnight courier receipt signed by the Investor or the signed receipt
if delivered by hand).  If the Escrow
Agent has not received a written objection to such Effectiveness Notice from
the Investor within two (2) Business Days following the Escrow Agent’s receipt
of such proof of delivery to the Investor, then on the third (3rd) Business Day
following such receipt the Escrow Agent shall, in accordance with the
provisions of subparagraph 3(d) below, distribute the full amount of the Escrow
Fund to the Company.

 

                (b)  Event of Default.  If the Investor shall deliver an Event of Default Redemption
Notice (as defined in the Debenture) to the Company pursuant to Section 4(b) of
the Debenture due to the occurrence of an Event of Default described in Section
4(a)(i) of the Debenture, the Investor may deliver a copy of such Event of
Default Redemption Notice to the Escrow Agent together with notification to the
Company that the Investor has delivered such Event of Default Redemption Notice
to the Escrow Agent.  The Investor shall
also (i) physically surrender to the Company the Debenture for cancellation and
reissuance in an amount equal to the amount of the Debenture then outstanding
less the amount paid to the Investor from the Escrow Fund, and (ii) deliver to
the Escrow Agent written proof of delivery to the Company of such notification
(which proof may consist of a photocopy of the registered or certified mail or
overnight courier receipt or the signed receipt if delivered by hand).  If, on or after March 27, 2004, the Escrow
Agent receives such Event of Default Redemption Notice from the Investor
together with such proof of delivery of the Debenture and the Event of Default
Redemption Notice to the Company, then on the third (3rd) Business Day
following such receipt the Escrow Agent shall, in accordance with the
provisions of subparagraph 3(d) below, distribute an amount from the Escrow
Fund equal to the price to be paid by the Company to redeem the portion of the
Debenture being redeemed by the Investor pursuant to Section 4(b) of the
Debenture; provided, that in no event shall the Escrow Agent distribute
an amount greater than the full amount of the Escrow Fund at the time of the
distribution.

 

(c)  Joint Instructions.  In the event that the Company and the
Investor shall deliver joint written instructions to the Escrow Agent directing
the Escrow Agent to disburse all or 

 

2

 

any portion of the Escrow Fund, the Escrow Agent shall make such
disbursements in accordance with such instructions.

 

(d)  Manner of Distributions.  All distributions of the Escrow Fund shall
be made as set forth in this subparagraph 3(d).  Distributions of the Escrow Fund shall be made, with respect to
cash, by wire transfer to an account or accounts designated in writing by the
Company or the Investor, as applicable, and all other property shall be distributed
to the Company or the Investor, as applicable, in accordance with their written
instructions.

 

(e)  Termination.  This Agreement shall terminate when the entire Escrow Fund has
been released and distributed in accordance with this paragraph 3.  Upon such termination this Agreement shall
have no further force and effect, except that the provisions of this
subparagraph 3(e) and paragraphs 4, 5 and 6 and paragraphs 8 through 19 below
shall survive such termination.

 

4.           Conditions to Escrow.  The Escrow Agent agrees to hold the
Escrow Fund and to perform in accordance with the terms and provisions of this
Agreement.  The Parties agree that the
Escrow Agent shall not assume any responsibility for the failure of the Parties
to perform in accordance with the Purchase Agreement or this Agreement.  The acceptance by the Escrow Agent of its
responsibilities hereunder is subject to the following terms and conditions
which the Parties hereto agree shall govern and control with respect to the
Escrow Agent’s rights, duties and liabilities hereunder:

 

(a)  Liability. 
The Escrow Agent undertakes to perform only such duties as are expressly
set forth herein, and no additional duties or obligations shall be implied
hereunder. In performing its duties under this Agreement, or upon the claimed
failure to perform any of its duties hereunder, the Escrow Agent shall not be
liable to anyone for any damages, losses or expenses which may be incurred as a
result of the Escrow Agent so acting or failing to so act; provided, however,  that the Escrow Agent shall not be
relieved from liability for damages arising out of its proven gross negligence,
or willful misconduct under this Agreement. 
The Escrow Agent shall in no event incur any liability with respect to
(i) any action taken or omitted to be taken in good faith upon advice of legal
counsel (which counsel may not also be counsel to any Party) given with respect
to any question relating to the duties and responsibilities of the Escrow Agent
hereunder or (ii) any action taken or omitted to be taken in reliance upon any
instrument delivered to the Escrow Agent and believed by it to be genuine and
to have been signed or presented by the proper Party or Parties.  The Escrow Agent shall not be bound in any
way by any agreement or contract between or among the Parties, whether or not
the Escrow Agent has knowledge of any such agreement or contract, including,
but not limited to, the Purchase Agreement. 
The Escrow Agent is not a party to, nor is it bound by, nor need it give
consideration to the terms or provisions of, any other agreement or undertaking
among the Parties or any of them, or between the Parties or any of them and
other persons (other than this Agreement), it being the intention of the
parties hereto that the Escrow Agent assent to and be obligated to give
consideration only to the terms and provisions hereof.

 

(b)  Rights in Event of Dispute.  It is understood and agreed that, in the
event of any dispute between the Parties or among them or any other person
resulting in adverse claims and demands being made in connection with or for
any money or other property involved in or affected by this Agreement, the
Escrow Agent shall refuse to comply with such demands or claims, so long as
such dispute shall continue.  In such
event, the Escrow Agent shall make no distribution, release or other
disposition of the Escrow Fund or any portion of the Escrow Fund.  Anything herein to the contrary
notwithstanding, the Escrow Agent shall not be or become liable to such Parties
or persons or any of them for the failure of the Escrow Agent to comply with
such conflicting or adverse demands. 
The Escrow Agent shall be entitled to continue to refrain and refuse to
distribute, release or otherwise dispose of the Escrow Fund or any 

 

3

 

part thereof or to otherwise act hereunder, as stated above, unless and
until such dispute is resolved in accordance with subparagraph 3(b) of this
Agreement.  In the event of such a
dispute, the Escrow Agent shall have the right, in addition to the rights
described above and at the option of the Escrow Agent, to tender into the
registry or custody of any court having jurisdiction, all money and property
comprising the Escrow Fund.  Upon such
tender, the parties hereto agree that the Escrow Agent shall be discharged from
all further duties under this Agreement; provided, however that
such tender shall not deprive the Escrow Agent of its compensation hereunder
earned prior to such tender and discharge of the Escrow Agent of its duties
hereunder.

 

(c)  Resignation or Termination of Escrow
Agent.  The Escrow Agent shall have the
right to resign at any time by giving written notice of such resignation to the
Parties and the Parties shall have the right to terminate the services of the
Escrow Agent hereunder at any time by giving thirty (30) days’ written notice
(with such written notice being signed by the Company and the Investor) of such
termination to the Escrow Agent, in each case specifying the effective date of
such resignation or termination. Within thirty (30) days after receiving or
delivering the aforesaid notice, as the case may be, the Parties agree to
appoint a successor escrow agent to which the Escrow Agent shall distribute the
funds and property then held hereunder, less the amount of any fees owing to
the Escrow Agent hereunder as of such date. 
If a successor escrow agent has not been appointed and has not accepted
such appointment by the end of such thirty (30)-day period, the Escrow Agent
may apply to a court of competent jurisdiction for the appointment of a
successor escrow agent and shall be entitled to tender into the custody of such
court all funds and property then held by it hereunder, and the costs, expenses
and reasonable attorneys’ fees which are incurred in connection with any such
proceeding shall be paid by the Company. 
Thereupon, the Escrow Agent shall be relieved of all further duties and
obligations under this Agreement.  The
Escrow Agent shall have no responsibility for the appointment of a successor
escrow agent hereunder.  Except as
otherwise agreed to in writing by the Parties, none of the Escrow Fund shall be
released from the Escrow Account unless and until a successor escrow agent has
been appointed in accordance with this subparagraph 4(c).

 

(d)  Discharge of Escrow Agent.  Upon delivery of all of the Escrow Fund
pursuant to the terms of paragraph 3 above or to a successor escrow agent, the
Escrow Agent shall thereafter be discharged from any further obligations
hereunder.  The Escrow Agent is hereby
authorized, in any and all events, to comply with and obey any and all final
judgments, orders and decrees of any court of competent jurisdiction which may
be filed, entered or issued, and all final arbitration awards and, if it shall
so comply or obey, it shall not be liable to any other person by reason of such
compliance or obedience.

 

5.     Indemnification.  The Escrow Agent shall have no
obligation to take any legal action in connection with this Agreement or
towards its enforcement, or to appear in, prosecute or defend any action or
legal proceeding which would or might involve it in any cost, expense, loss or
liability unless security and indemnity, as provided herein, shall be
furnished.  The Company and the Investor
hereby, jointly and severally, agree to indemnify the Escrow Agent and its
officers, directors, employees and agents and save the Escrow Agent and its
officers, directors, employees and agents harmless from and against any and all
Claims (as defined below) and Agent Losses (as defined below) which may be
incurred by the Escrow Agent or any of such officers, directors, employees or
agents as a result of Claims asserted by any person against the Escrow Agent or
any of such officers, directors, employees or agents as a result of or in connection
with its performance as the Escrow Agent under this Agreement.  As between the Company and the Investor,
each of the Company’s and the Investor’s obligation to so jointly and severally
indemnify and hold harmless the Escrow Agent and its officers, directors,
employees and agents shall be limited to one-half (1⁄2) the amount of the
Claim.  For the purposes hereof, the
term “Claim” or “Claims” shall

 

4

 

mean all claims, lawsuits,
causes of action or other legal actions and proceedings of whatever nature
brought against (whether by way of direct action, counterclaim, cross action or
impleader) the Escrow Agent or any such officer, director, employee or agent,
even if groundless, false or fraudulent, so long as the claim, lawsuit, cause
of action or other legal action or proceeding is alleged or determined,
directly or indirectly, to arise out of, result from, relate to or be based
upon, in whole or in part: (a) the acts or omissions of any of the Parties, (b)
the appointment of the Escrow Agent as escrow agent under this Agreement, or
(c) the performance by the Escrow Agent of its duties under this Agreement; and
the term “Agent Losses”
shall mean losses, costs and expenses and amounts paid in settlement, directly
or indirectly resulting from, arising out of or relating to one or more
Claims.  Upon the written request of the
Escrow Agent or any such officer, director, employee or agent (each referred to
herein as an “Indemnified Party”)
the Company and/or the Investor shall assume the investigation and defense of
any Claim, including the employment of counsel reasonably acceptable to the
applicable Indemnified Party and the payment of all expenses related thereto
and, notwithstanding any such assumption, such Indemnified Party shall have the
right, and the Company and/or the Investor shall pay the cost and expense
thereof, to employ separate counsel with respect to any such Claim and
participate in the investigation and defense thereof in the event that such Indemnified
Party shall have been advised by counsel that there may be one or more legal
defenses available to such Indemnified Party that are different from or in
addition to those available to any Party. 
The Company and the Investor hereby agree that the indemnification and
protections afforded the Escrow Agent in this paragraph shall survive the
termination of this Agreement, the resignation or removal of the Escrow Agent
pursuant to Paragraph 4(c) hereof or the tender by the Escrow Agent of the
Escrow Fund to a court pursuant to Paragraph 4(b) hereof.

 

6.     Escrow Costs.  The Escrow Agent shall be entitled to be
paid, by the Company, a fee for its services pursuant to the Fee Schedule
attached hereto.  In addition, the
Company agrees to pay to the Escrow Agent the Escrow Agent’s expenses incurred
in connection with this Agreement, including but not limited to the reasonable
cost and expenses of legal services (including attorneys’ fees) in the event
the Escrow Agent deems it necessary to retain counsel.  Such expenses shall be paid by the Company
to the Escrow Agent upon execution of the Escrow Agreement, by wire transfer of
funds.  The Company further agrees that,
in the event any controversy arises under or in connection with this Agreement
or the Escrow Fund or the Escrow Agent is made a party to or intervenes in any
litigation pertaining to this Agreement or the Escrow Fund, the Company shall
pay to the Escrow Agent reasonable compensation for the Escrow Agent’s
extraordinary services and shall reimburse the Escrow Agent for all reasonable
costs and expenses associated with such controversy or litigation (including
attorneys’ fees).

 

7.         Limitations on Rights
to Escrow Fund.  None of
the Parties shall have any right, title or interest in or to, or possession of,
the Escrow Account and therefore shall not have the ability to pledge, convey,
hypothecate or grant as security all or any portion of the Escrow Fund unless
and until such portion of the Escrow Fund has been released pursuant to
paragraph 3 above.  Accordingly, the
Escrow Agent shall be in sole possession of the Escrow Fund and shall not act
as custodian of the Parties under this Agreement for the purposes of perfecting
a security interest therein, and no creditor of any of the Parties shall have any
right to have or to hold or otherwise attach or seize all or any portion of the
Escrow Fund as collateral for any obligation and shall not be able to obtain a
security interest in any of the Escrow Fund unless and until such portion of
the Escrow Fund has been released pursuant to paragraph 3 above.

 

8.     Notices.  All notices, requests or other
communications required or permitted hereunder shall be given in writing by
hand delivery, facsimile, registered mail, certified mail or overnight courier,
in each case, return receipt requested, postage prepaid, to the party to 

 

5

 

receive the same at its
respective address set forth below, or at such other address as may from time
to time be designated by such party to the other in accordance with this
paragraph 8:

 

if to the Company, to:

 

24/7 Real
Media, Inc.

1250 Broadway

New York, NY 10001

Attn: General Counsel

Facsimile No.:  (212) 760-2811

with a copy (which shall
not constitute notice) to:

Proskauer Rose LLP

1585 Broadway

New York, NY 10036-8299

Attn:  Ronald R. Papa, Esq.

Facsimile No.:  (212) 969-2900

 

if
to Investor, to :

 

The
Riverview Group, LLC

666 Fifth Avenue, 8th
Floor

New York, New York  10103

Attn:  Daniel Cardella

Facsimile No.:  (212) 977-1667

with a copy (which shall
not constitute notice) to:

Schulte Roth & Zabel LLP

919 Third Avenue

New York, NY 10022

Attn:  Eleazer Klein, Esq.

Facsimile No.:  (212) 593-5955

 

if
to Escrow Agent, to :

 

The Bank of New York

101 Barclay Street

8 West

New York, NY 10286

Facsimile No.: (212) 815-5877

Attn: 
Mathew Louis

 

All such notices and
communications hereunder shall be deemed given when received, as evidenced by
the acknowledgment of receipt issued (in writing or by facsimile) with respect
thereto by the applicable postal authorities or the signed acknowledgment of
receipt of the person to whom such notice or communication shall have been
addressed.

 

9.             Entire Agreement,
Amendments.  This
Agreement, together with the Purchase Agreement and the documents referenced therein
(as the same applies solely to the Parties), 

 

6

 

embodies the entire understanding of the parties hereto with respect to
the subject matter hereof and there are no other agreements or understandings,
written or oral, in effect between the parties hereto relating to the subject
matter hereof, except as specifically referenced herein. This Agreement,
together with the Purchase Agreement and the documents referenced therein (as
the same applies solely to the Parties) supersedes and terminates all prior
discussions, negotiations, understandings, arrangements and agreements by or
among the parties hereto relating to the subject matters hereof.  This Agreement may be amended, or any
provision of this Agreement may be waived, so long as such amendment or waiver
is set forth in a writing executed by each of the Parties (a copy of which
shall be promptly provided by the Parties to the Escrow Agent); provided
that  if any such amendment or
waiver would have the effect of increasing or expanding the Escrow Agent’s
obligations or duties under this Agreement, the written consent of the Escrow
Agent shall be required in addition to the written consent of the Parties.  No course of dealing between or among the
parties hereto shall be deemed effective to modify, amend or discharge any part
of this Agreement or any rights or obligations of any party hereto under or by
reason of this Agreement.

 

10.                        Assigns and Assignment.  This Agreement and the
provisions hereof shall be binding upon and inure to the benefit of the
respective successors and permitted assigns of the parties hereto; provided
that the Escrow Agent shall not be permitted to assign its obligations
hereunder except as provided in subparagraphs 4(b) and 4(c) above.

 

11.       Taxation of Escrow
Earnings.  The Company
hereby acknowledges that, for federal and state income tax purposes, the Escrow
Earnings shall be income of the Company.

 

12.   No Other Third Party
Beneficiaries.  Neither
this Agreement nor any provision hereof, nor any document executed or delivered
herewith, shall create any right in favor of or impose any obligation upon any
person or entity other than the parties hereto and their respective successors
and permitted assigns.

 

13.   Interpretation.  The headings in this Agreement are
inserted for convenience of reference only and shall not be a part of or
control or affect the meaning hereof.

 

14.   No Waiver.  Any failure of any of the parties hereto
to comply with any of its obligations or agreements or to fulfill any
conditions herein contained may be waived only by a written waiver from the
other parties hereto. No failure by any party hereto to exercise, and no delay
in exercising, any right hereunder shall operate as a waiver thereof, nor shall
any single or partial exercise of any right hereunder by such party preclude
any other or future exercise of that right or any other right hereunder by that
party.

 

15.        Severability.  The parties hereto agree that (a) the
provisions of this Agreement shall be severable in the event that for any
reason whatsoever the provisions hereof are invalid, void or otherwise
unenforceable, (b) such invalid, void or otherwise unenforceable provisions
shall be automatically replaced by other provisions which are as similar as possible
in terms to such invalid, void or otherwise unenforceable provisions, but are
valid and enforceable, and (c) the remaining provisions shall remain
enforceable to the fullest extent permitted by law.

 

16.   No Strict Construction.  The language used in this Agreement
shall be deemed to be the language chosen by the parties hereto to express
their collective mutual intent, and no rule of strict construction shall be
applied against any person. The term “including” as used herein shall be by way
of example, and shall not be deemed to constitute a limitation of 

 

7

 

any term or provision
contained herein.  Each defined term
used in this Agreement has a comparable meaning when used in its plural or
singular form.

 

17.   Releases on Non-Business Days.  In the event that a release of a portion
of the Escrow Fund hereunder is required to be made on a date that is not a
Business Day, such release may be made on the next succeeding Business Day with
the same force and effect as if made when required.

 

18.                     Governing Law; Service of Process.  All issues and questions
concerning the construction, validity, enforcement and interpretation of this
Agreement shall be governed by, and construed in accordance with, the laws of the
State of New York without giving effect to any choice of law or conflict of law
rules or provisions (whether of the State of New York or any other
jurisdiction) that would cause the application of the laws of any jurisdiction
other than the State of New York.  In
furtherance of the foregoing, the internal law of the State of New York shall
control the interpretation and construction of this Agreement, even though
under that jurisdiction’s choice of law or conflict of law analysis, the
substantive law of some other jurisdiction would ordinarily apply.  It is the intention of the parties hereto, however,
that the situs of the Escrow Fund created hereunder is and shall be
administered in the state in which the principal office of the Escrow Agent
from time to time acting hereunder is located. 
Any action or proceeding seeking to enforce any provision of, or based
on any right arising out of, this Agreement shall be brought against any of the
parties in the courts of New York, and each of the Parties irrevocably consents
to the jurisdiction of such courts (and of the appropriate appellate courts) in
any such action or proceeding and waives any objection to venue laid
therein.  Process in any action or
proceeding referred to in the preceding sentence may be served on any party
anywhere in the world.  Each party
hereby accepts service of process by U.S. Mail, postage prepaid to the
applicable addresses set forth in Paragraph 8.

 

19.   Counterparts.  This Agreement may be executed in any
number of duplicate counterparts, each of which shall be deemed an original and
all of which together shall constitute one and the same instrument.

 

[Signature page follows.]

 

8

                IN WITNESS WHEREOF, the parties
have executed this Agreement as of the date first written above.

 

	
  24/7 REAL MEDIA, INC.

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/David
  J. Moore

  	
   

  
	
   

  	
  Name:
  David J. Moore

  	
   

  
	
   

  	
  Title:  Chief Executive Officer

  	
   

  
	
   

  	
   

  	
   

  
	
  THE RIVERVIEW GROUP, LLC

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/Terry
  Feeney

  	
   

  
	
   

  	
  Name:  Terry Feeney

  	
   

  
	
   

  	
  Title:  Chief Operating Officer

  	
   

  

 

Accepted and agreed as of the date
first above

written, by

 

THE BANK OF NEW YORK, as Escrow Agent:

 

	
  By:

  	
  /s/
  Matthew G. Louis

  
	
   

  	
  Name:
  Matthew G. Louis

  
	
   

  	
  Title:  Assistant Vice President

  

 

9

SCHEDULE OF
FEES

 

ACCEPTANCE FEE: 
         $0

 

For initial services
including examination of the Escrow Agreement and all supporting documents this
is a one-time fee payable upon the opening of
the account.

 

ADMINISTRATION FEE: 
                $6000.00

 

An annual charge or any portion of a 12-month period
thereof. This fee is payable upon the opening
of the account and annually thereafter. This charge is not prorated
for the first year.

 

TRANSACTION FEE:

 

	
  Wire transfer of funds

  	
   

  	
  $25.00

  
	
  Other transfer of funds (i.e. checks, internal account transfers)

  	
   

  	
  $25.00

  
	
  Asset transactions (purchases/sales/calls/deposit/withdrawals, etc.)

  	
   

  	
  $25.00

  

 

10Exhibit
4.1

 

 

 

SECURITIES PURCHASE AGREEMENT

 

 

MICRON TECHNOLOGY, INC.

 

 

INTEL CAPITAL CORPORATION

 

 

 

September 24, 2003

 

 

 

 

TABLE OF CONTENTS

 

	
  1.

  	
  DEFINITIONS

  
	
   

  	
  1.1

  	
  Certain
  Defined Terms; Interpretation

  
	
   

  	
  1.2

  	
  Index of
  Other Defined Terms

  
	
   

  	
   

  	
   

  
	
  2.

  	
  AGREEMENT
  TO PURCHASE AND SELL SECURITIES

  
	
   

  	
  2.1

  	
  Agreement
  to Purchase and Sell Stock

  
	
   

  	
  2.2

  	
  The Closing

  
	
   

  	
  2.3

  	
  Additional
  Adjustment Shares

  
	
   

  	
   

  	
   

  
	
  3.

  	
  REPRESENTATIONS
  AND WARRANTIES OF THE COMPANY

  
	
   

  	
  3.1

  	
  Organization
  Good Standing and Qualification

  
	
   

  	
  3.2

  	
  Capitalization

  
	
   

  	
  3.3

  	
  Due
  Authorization

  
	
   

  	
  3.4

  	
  Valid Issuance
  of Shares; Listing

  
	
   

  	
  3.5

  	
  Compliance
  with Securities Laws

  
	
   

  	
  3.6

  	
  Governmental
  Consents

  
	
   

  	
  3.7

  	
  Non-Contravention

  
	
   

  	
  3.8

  	
  Litigation

  
	
   

  	
  3.9

  	
  Compliance
  with Law and Charter Documents

  
	
   

  	
  3.10

  	
  SEC
  Documents

  
	
   

  	
  3.11

  	
  Absence
  of Certain Changes Since Balance Sheet

  
	
   

  	
  3.13

  	
  Full
  Disclosure

  
	
   

  	
   

  	
   

  
	
  4.

  	
  REPRESENTATIONS AND WARRANTIES OF
  SILICON CAPITAL

  
	
   

  	
  4.1

  	
  Investigation;
  Economic Risk

  
	
   

  	
  4.2

  	
  Purchase
  for Own Account

  
	
   

  	
  4.3

  	
  Exempt from
  Registration; Restricted Securities

  
	
   

  	
  4.4

  	
  Accredited
  Investor

  
	
   

  	
  4.5

  	
  Legends

  
	
   

  	
  4.6

  	
  Organization
  Good Standing and Qualification

  
	
   

  	
  4.7

  	
  Due
  Authorization;  Capitalization

  
	
   

  	
  4.8

  	
  Governmental
  Consents

  
	
   

  	
  4.9

  	
  Non-Contravention

  
	
   

  	
  4.10

  	
  Restrictions
  on Hedging

  
	
   

  	
   

  	
   

  
	
  5.

  	
  AFFIRMATIVE
  COVENANTS OF THE COMPANY

  
	
   

  	
  5.1

  	
  Use of
  Proceeds

  
	
   

  	
   

  	
   

  
	
  6.

  	
  CLOSING
  CONDITIONS

  
	
   

  	
  6.1

  	
  Conditions
  to Silicon Capital’s Obligations

  
	
   

  	
  6.2

  	
  Conditions
  to the Company’s Obligations

  
	
   

  	
   

  	
   

  
	
  7.

  	
  CONFIDENTIALITY
  OBLIGATIONS

  
	
   

  	
  7.1

  	
  Obligations

  
	
   

  	
  7.2

  	
  Certain
  Definitions

  

 

i

 

	
   

  	
  7.3

  	
  Non-Disclosure
  of Agreements

  
	
   

  	
  7.4

  	
  Public
  Announcements

  
	
   

  	
  7.5

  	
  Third Party
  Information

  
	
   

  	
  7.6

  	
  Other
  Disclosures

  
	
   

  	
  7.7

  	
  Disclosure
  of Tax Treatment, Etc.

  
	
   

  	
   

  	
   

  
	
  8.

  	
  MISCELLANEOUS

  
	
   

  	
  8.1

  	
  Governing
  Law

  
	
   

  	
  8.2

  	
  Survival

  
	
   

  	
  8.3

  	
  Successors
  and Assigns

  
	
   

  	
  8.4

  	
  Entire
  Agreement

  
	
   

  	
  8.5

  	
  Notices

  
	
   

  	
  8.6

  	
  Amendments

  
	
   

  	
  8.7

  	
  Delays or
  Omissions

  
	
   

  	
  8.8

  	
  Legal Fees

  
	
   

  	
  8.9

  	
  Titles and
  Subtitles

  
	
   

  	
  8.10

  	
  Counterparts

  
	
   

  	
  8.11

  	
  Severability

  
	
   

  	
  8.12

  	
  Dispute
  Resolution

  
	
   

  	
  8.13

  	
  No Third
  Parties Benefited

  
	
   

  	
  8.14

  	
  Meaning
  of Include and Including

  
	
   

  	
  8.15

  	
  Fees,
  Costs and Expenses

  
	
   

  	
  8.16

  	
  Competition

  

 

ii

 

SECURITIES PURCHASE AGREEMENT

 

This Securities Purchase Agreement (this “Agreement”)
is entered into as of September 24, 2003 by and between Micron Technology,
Inc., a Delaware corporation (the “Company” or the “Corporation”)
and Intel Capital Corporation, a Cayman Islands corporation (“Intel Capital”).

 

WHEREAS, Intel Capital is willing, pursuant to the
terms and conditions of this Agreement, to purchase from the Company, for an
aggregate amount of $449,999,998.05, Rights (as defined below) to acquire
33,860,045 shares of the Company’s Common Stock, par value $0.10 per share (the
“Common Stock”);

 

WHEREAS, at the closing of the transactions
contemplated hereby, the Company and Intel Capital will enter into the Rights
Agreement, the Rights and Restrictions Agreement and the Business Agreement
(each as defined below).

 

NOW, THEREFORE, the parties hereby agree as follows:

 

1.                                      DEFINITIONS.

 

1.1                                 Certain
Defined Terms; Interpretation.  The
following terms shall have the following respective meanings.

 

“Affiliate” shall mean, with respect to any
Person, any Person directly or indirectly controlling, controlled by, or under
common control with, such other Person. 
For purposes of this definition, “control” when used with respect
to any Person, means the possession, directly or indirectly, of the power to
direct or cause the direction of the management and policies of such Person,
whether through the ownership of voting securities, by contract or otherwise;
the terms “controlling” and “controlled” have meanings
correlative to the foregoing.

 

“Business Agreement” shall mean that certain
Business Agreement by and between Intel and the Company, dated as of the date
hereof, in the form attached to this Agreement as Exhibit A.

 

“Business Day” shall mean any day on which
commercial banks are not authorized or required to close in either Boise, Idaho
or San Francisco, California.

 

“Common Stock” shall have the meaning set forth
in the recitals to this Agreement.

 

“Exchange Act” shall mean the Securities
Exchange Act of 1934, as amended, and the rules and regulations promulgated
thereunder, all as the same shall be in effect from time to time.

 

“HSR Act” shall mean Hart-Scott-Rodino
Antitrust Improvements Act of 1976, as amended.

 

“Intel” shall mean Intel Corporation, a
Delaware corporation.

 

“NYSE” shall mean the New York Stock Exchange.

 

1

 

“Person” shall mean individual, corporation,
company, voluntary association, partnership, joint venture, limited liability
company, trust, estate, unincorporated organization, governmental authority or
other entity.

 

“Rights” shall mean the securities issuable
pursuant to the Stock Rights Agreement, dated as of the date hereof, between
the Company and Intel Capital, having the rights, preferences, privileges and
restrictions defined therein, including any Additional Adjustment Rights.

 

“Rights Agreement” shall mean the Stock Rights
Agreement, dated as of the date hereof, between the Company and Intel Capital.

 

“Rights and Restrictions Agreement” shall mean
the Securities Rights and Restrictions Agreement, dated as of the date hereof,
between the Company and Intel Capital.

 

“SEC” shall mean the Securities and Exchange
Commission.

 

“Securities Act” shall mean the Securities Act
of 1933, as amended, and the rules and regulations promulgated thereunder, all
as the same shall be in effect from time to time.

 

“Subsidiary” shall mean each Person in which
the Company owns, directly or indirectly, 50% or more of the voting interests
or of which the Company otherwise has the right to direct the management.

 

1.2                                 Index
of Other Defined Terms.  In addition
to the terms defined above, the following terms shall have the respective
meanings given thereto in the sections indicated below:

 

	
  Defined Term

  	
   

  	
  Section

  
	
   

  	
   

  	
   

  
	
  “Action”

  	
   

  	
  3.8

  
	
  “Additional
  Adjustment Rights”

  	
   

  	
  2.3

  
	
  “Agreement”

  	
   

  	
  Preamble

  
	
  “Audited
  Financial Statements”

  	
   

  	
  3.10(b)

  
	
  “Balance
  Sheet Date”

  	
   

  	
  3.10(b)

  
	
  “Closing”

  	
   

  	
  2.2

  
	
  “Common Stock”

  	
   

  	
  Recitals

  
	
  “Company”

  	
   

  	
  Preamble

  
	
  “Confidential
  Information”

  	
   

  	
  7.2

  
	
  “Disclosure
  Letter”

  	
   

  	
  3

  
	
  “Form 10-K”

  	
   

  	
  3.10(a)

  
	
  “Form 10-Q’s”

  	
   

  	
  3.10(a)

  
	
  “GAAP”

  	
   

  	
  3.10(b)

  
	
  “Hedging
  Transaction”

  	
   

  	
  4.10

  
	
  “Intel
  Capital”

  	
   

  	
  Preamble

  
	
  “Material
  Adverse Effect”

  	
   

  	
  3.1

  
	
  “Purchase
  Price”

  	
   

  	
  2.1

  
	
  “SEC
  Documents”

  	
   

  	
  3.10(a)

  
	
  “Settlement
  Date”

  	
   

  	
  2.3

  
	
  “Shares”

  	
   

  	
  2.1

  
	
  “Transaction
  Agreements”

  	
   

  	
  7.2

  

 

2

 

2.                                      AGREEMENT
TO PURCHASE AND SELL SECURITIES.

 

2.1                                 Agreement
to Purchase and Sell Securities. 
The Company hereby agrees to issue to Intel Capital at the Closing (as
defined below) and Intel Capital agrees to purchase from the Company at the
Closing, for an aggregate purchase price of $449,999,998.05 (the “Purchase
Price”), Rights representing in the aggregate the right to acquire
33,860,045 shares of Common Stock (the “Shares”).

 

2.2                                 The
Closing.  The purchase and sale of
the Rights shall take place at the offices of Gibson, Dunn & Crutcher LLP,
1881 Page Mill Road, Palo Alto, California 94304, at 10:00 a.m. California
time, on September 24, 2003, or at such other time and place as the
Company and Intel Capital mutually agree upon (which time and place is referred
to in this Agreement as the “Closing”). 
At the Closing, the Company will deliver to Intel Capital certificates
representing the Rights being purchased, against delivery to the Company by
Intel Capital of the consideration set forth in Section 2.1 by wire transfer of
immediately available funds to an account designated by the Company at least
two (2) Business Days prior to the Closing.

 

2.3                                 Additional
Adjustment Rights.  The Company and
Intel Capital acknowledge that pursuant to Sections 7.2.1 and 7.2.2 of the
Business Agreement, the Company may be obligated to pay to Intel certain
Additional Amounts (as defined and specified in the Business Agreement).  Subject to the provisions of this
Section 2.3, the Company may elect to satisfy its obligation to pay all or
a portion of any Additional Amount by delivering to Intel Capital additional
Rights (any such Rights are referred to herein as “Additional Adjustment
Rights”).  If the Company elects to
deliver Additional Adjustment Rights to satisfy its obligation to pay any
Additional Amount, then it shall notify Intel Capital of such election, the
number of Rights or dollar value of Rights it elects to deliver (based upon the
dollar value of the shares of Common Stock that may be acquired pursuant to
such Rights), and the date that it will deliver the Additional Adjustment
Rights (any such date, a “Settlement Date”).  The Company may deliver Additional Adjustment Rights only if, as
of the applicable Settlement Date, the information contained in the SEC
Documents (as defined in Section 3.10(a) hereof), as filed prior to the Settlement
Date, with respect to the business, operations, results of operations and
financial condition of the Company and its subsidiaries, taken as a whole, and
the transactions contemplated by this Agreement, taken together, are true and
complete in all material respects and do not omit to state any material fact
necessary in order to make the statements therein, in light of the
circumstances under which they were made, not misleading, and the Company
delivers to Intel Capital on the Settlement Date, a certificate of its Chief
Executive Officer or Chief Financial Officer to that effect.  For purposes of satisfying the Company’s
obligations to pay any Additional Amount, any Additional Adjustment Rights
shall be valued based upon the average closing prices of the Common Stock on
the NYSE, as reported by Bloomberg L.P., for the twenty (20) trading day period
ending and including the third trading day prior to the Settlement Date.  The Company may not elect to deliver
Additional Adjustment Rights in satisfaction of its obligations to pay any
Additional Amount if, as of the Settlement Date, the Common Stock is not listed
on the NYSE or the NASDAQ National Market, if the Company has taken action
towards delisting or intends to delist the Common Stock from the NYSE or the
NASDAQ National Market.

 

3

 

3.                                      REPRESENTATIONS
AND WARRANTIES OF THE COMPANY.

 

The Company hereby represents and warrants to Intel
Capital that the statements in this Section 3 are true and correct, except as
set forth in the Disclosure Letter from the Company dated the date hereof (the
“Disclosure Letter”) or disclosed in the SEC Documents (as defined
below):

 

3.1                                 Organization
Good Standing and Qualification. 
The Company is a corporation duly organized, validly existing and in
good standing under the laws of the State of Delaware and has all corporate
power and authority required to (a) carry on its business as presently
conducted, and (b) enter into this Agreement, the Rights Agreement, the Rights
and Restrictions Agreement and the Business Agreement, to issue the Rights, any
Additional Adjustment Rights and any shares of Common Stock issuable pursuant
to the Rights and any Additional Adjustment Rights, and to consummate the
transactions contemplated hereby and thereby. 
The Company is qualified to do business and is in good standing in each
jurisdiction in which the failure to so qualify would have a Material Adverse
Effect.  As used in this Agreement, “Material
Adverse Effect” means a material adverse effect, or a group of such effects
which are related, on the business, operations, financial condition or results
of operations, of the applicable party and its Subsidiaries, taken as a whole.

 

3.2                                 Capitalization.  The authorized and outstanding capital stock
of the Company at September 19, 2003, without giving effect to the
transactions contemplated by this Agreement, is as set forth in the Disclosure
Letter or the SEC Documents.  All
outstanding shares of capital stock have been duly authorized, and all such
issued and outstanding shares have been validly issued and are fully paid and
nonassessable.  The Disclosure Letter or
the SEC Documents include information regarding equity securities reserved for
issuance to officers, directors, employees or independent contractors or
affiliates of the Company under the Company’s employee stock option and
purchase plans and upon conversion of convertible securities.  Except as set forth in the Disclosure Letter
or the SEC Documents, there are no other equity securities, options, warrants,
calls, rights, commitments or agreements of any character to which the Company
is a party or by which it is bound obligating the Company to issue, deliver,
sell, repurchase or redeem, or cause to be issued, delivered, sold, repurchased
or redeemed, any shares of the capital stock of the Company or obligating the
Company to grant, extend or enter into any such equity security, option,
warrant, call, right, commitment or agreement.

 

3.3                                 Due
Authorization.  The Company has the
requisite corporate power and authority to enter into this Agreement, the
Rights Agreement, the Rights and Restrictions Agreement and the Business
Agreement and to perform its obligations hereunder and thereunder.  The execution and delivery of this
Agreement, the Rights Agreement, the Rights and Restrictions Agreement and the
Business Agreement, and performance by the Company of its obligations hereunder
and thereunder, including without limitation, the issuance of the Rights, have
been duly authorized by all necessary corporate action on the part of the
Company (including its directors and stockholders).  This Agreement constitutes, and the Rights Agreement, the Rights
and Restrictions Agreement and the Business Agreement, when executed and
delivered by the parties thereto, will constitute, valid and legally binding
obligations of the Company, enforceable against the Company in accordance with
their respective terms, except (a) as may be limited by (i) applicable
bankruptcy, insolvency, reorganization or others laws of general application
relating to or affecting the enforcement of creditors’ rights generally and
(ii) the effect of rules of

 

4

 

law governing the availability of equitable remedies and (b) as rights
to indemnity or contribution may be limited under federal or state securities
laws or by principles of public policy thereunder.

 

3.4                                 Valid
Issuance.

 

(a)                                  Valid
Issuance and Enforceability of Rights. 
The Rights, including any Additional Adjustment Rights, issued pursuant
to this Agreement have been duly authorized, and, when executed in accordance
with the provisions of the Rights Agreement and delivered to and paid for by
Intel Capital in accordance with the provisions of this Agreement, will be
valid and binding obligations of the Company, enforceable in accordance with
their terms, except (a) as may be limited by (i) applicable
bankruptcy, insolvency, reorganization, or other laws of general application,
relating to or affecting the enforcement of creditors’ rights generally and (ii) the
effect of rules of laws governing the availability of equitable remedies and
(b) as rights to indemnity or contribution may be limited under federal or
state securities laws or by principles of public policy thereunder.

 

(b)                                 Valid
Issuance of Shares.  The shares of
Common Stock issuable upon conversion, exchange or exercise of the Rights,
including any Additional Adjustment Rights, have been duly authorized and
reserved, and when issued upon conversion, exchange or exercise of the Rights
in accordance with the terms of the Rights Agreement, will be duly and validly
issued, fully paid and nonassessable. 
The shares of Common Stock issuable pursuant to the Rights, including
any Additional Adjustment Rights, have been duly authorized and reserved, and
upon issuance pursuant to the term of the Rights Agreement, will be duly and
validly issued, fully paid and nonassessable.

 

3.5                                 Compliance
with Securities Laws.  Assuming the
accuracy of the representations made by Intel Capital in Section 4 hereof, the
Rights, including any Additional Adjustment Rights, and the shares of Common
Stock issuable upon conversion, exercise or exchange of the Rights, including
any Additional Adjustment Rights, will be issued to Intel Capital in compliance
with applicable exemptions from (i) the registration and prospectus delivery
requirements of the Securities Act and (ii) the registration and qualification
requirements of all applicable securities laws of the states of the United
States.

 

3.6                                 Governmental
Consents.  No consent, approval, order
or authorization of, or registration qualification, designation, declaration or
filing with, any federal, state or local governmental authority on the part of
the Company is required in connection with the consummation of the transactions
contemplated by this Agreement, except: (i) compliance with the HSR Act
which may be required for the conversion, exercise or exchange of the Rights to
acquire shares of Common Stock; (ii)  the filing of a current report on
Form 8-K by the Company with the SEC following the Closing; (iii) the
filing of such qualifications or filings under the Securities Act and the
regulations thereunder and all applicable state securities laws as may be
required in connection with the transactions contemplated by this Agreement; and
(iii) as expressly required or contemplated by the terms of the Rights and
Restrictions Agreement.  All such
qualifications and filings in connection with the issuance of the Rights have
been made or are effective.

 

5

 

3.7                                 Non-Contravention.  The execution, delivery and performance of
this Agreement, the Rights Agreement, the Rights and Restrictions Agreement,
and the Business Agreement by the Company, and the consummation by the Company
of the transactions contemplated hereby and thereby, do not and will not (i)
contravene or conflict with the Certificate of Incorporation or Bylaws of the
Company, as amended; (ii) constitute a violation of any provision of any
federal, state, local or foreign law binding upon or applicable to the Company;
or (iii) constitute a default or require any consent under, give rise to any
right of termination, cancellation or acceleration of, or to a loss of any
benefit to which the Company is entitled under, or result in the creation or
imposition of any lien, claim or encumbrance on any assets of the Company
under, any contract to which the Company is a party or any permit, license or
similar right relating to the Company or by which the Company may be bound,
except in the case of clause (ii) and (iii) as, individually or in the
aggregate, would not have a Material Adverse Effect.

 

3.8                                 Litigation.  There is no action, suit, proceeding, claim,
arbitration or investigation (“Action”) pending: (a) against the
Company, properties or assets or, to the best of the Company’s knowledge,
against any officer, director or employee of the Company in connection with
such officer’s, director’s or employee’s relationship with, or actions taken on
behalf of, the Company, which the Company believes is reasonably likely to have
a Material Adverse Effect, or (b) that seeks to prevent, enjoin, alter or delay
the transactions contemplated by this Agreement.  The Company is not a party to or subject to the provisions of any
order, writ, injunction, judgment or decree of any court or government agency
or instrumentality which it believes is reasonably likely to have a Material
Adverse Effect.  No Action by the
Company is currently pending nor does the Company intend to initiate any Action
which it believes is reasonably likely to have a Material Adverse Effect.

 

3.9                                 Compliance
with Law and Charter Documents.  The
Company is not in violation or default of any provisions of its Certificate of
Incorporation or Bylaws, both as amended. 
The Company has complied and is in compliance with all applicable
statutes, laws, and regulations and executive orders of the United States of
America and all states, foreign countries and other governmental bodies and
agencies having jurisdiction over the Company’s business or properties, except
for any violations that would not, either individually or in the aggregate,
have a Material Adverse Effect.

 

3.10                           SEC
Documents.

 

(a)                                  Reports.  The Company has filed all required forms,
reports and documents with the SEC since January 1, 2002.  The Company has furnished or made available
to Intel Capital prior to the date hereof copies of its Annual Report on Form
10-K for the fiscal year ended August 29, 2002 (“Form 10-K”), its
Quarterly Reports on Form 10-Q for the fiscal quarters ended November 28,
2002, February 27, 2003 and May 29, 2003 (the “Form 10-Q’s”),
and all other registration statements, reports and proxy statements filed by
the Company with the SEC on or after August 31, 2002 (the Form 10-K, the
Form 10-Q’s and such registration statements, reports and proxy
statements are collectively referred to herein as the “SEC Documents”).  Each of the SEC Documents, as of the
respective date thereof (or if amended or superseded by a filing prior to the
closing date of this Agreement, then on the date of such filing), did not, and
each of the registration statements, reports and proxy statements filed by the
Company with the SEC after the date hereof and prior to the Closing will not,
as of the date thereof (or if amended or superseded by a filing prior to the
date of this Agreement, then on the

 

6

 

date of such filing), contain any untrue statement of a material fact
or omit to state a material fact necessary in order to make the statements made
therein, in light of the circumstances under which they were made, not
misleading.  The Company is not a party
to any material contract, agreement or other arrangement which was required to
have been filed as an exhibit to the SEC Documents that was not so filed.

 

(b)                                 Financial
Statements.  The SEC Documents
include the Company’s audited consolidated financial statements (the “Audited
Financial Statements”) for the fiscal year ended August 29, 2002, and
its unaudited consolidated financial statements for the nine-month period ended
May 29, 2003 (the “Balance Sheet Date”).  Since the Balance Sheet Date, the Company has duly filed with the
SEC all forms, reports and other documents required to be filed by it under the
Exchange Act and the Securities Act. 
The audited and unaudited consolidated financial statements of the
Company included in the SEC Documents filed prior to the date hereof fairly
present, in conformity with United States generally accepted accounting
principles (“GAAP”)(except as permitted by Form 10-Q) applied on a
consistent basis (except as may be indicated in such financial statements or
the notes thereto), the consolidated financial position of the Company and its
consolidated Subsidiaries as at the dates thereof and the consolidated results
of their operations and cash flows for the periods then ended (subject to
normal year-end audit adjustments in the case of the unaudited interim
financial statements contained in the Form 10-Qs, which adjustments are
not expected to be material in amount).

 

3.11                           Absence
of Certain Changes Since Balance Sheet . 
Since the Balance Sheet Date, except as disclosed in or contemplated by
the SEC Documents, the business and operations of the Company have been
conducted in the ordinary course consistent with past practice, and there has
not been:

 

(a)                                  any
declaration, setting aside or payment of any dividend or other distribution of
the assets of the Company with respect to any shares of capital stock of the
Company or any repurchase, redemption or other acquisition by the Company or
any Subsidiary of the Company of any outstanding shares of the Company’s
capital stock;

 

(b)                                 any
damage, destruction or loss, whether or not covered by insurance, except for
such occurrences that have not resulted, and are not expected to result, in a
Material Adverse Effect;

 

(c)                                  any
waiver by the Company of a valuable right or of a material debt owed to it,
except for such waivers that have not resulted and are not expected to result,
in a Material Adverse Effect;

 

(d)                                 any
material change or amendment to, or any waiver of any material rights under a
material contract or arrangement by which the Company or any of its assets, or
properties is bound or subject, except for changes, amendments or waivers that
are expressly provided for or disclosed in this Agreement or that have not
resulted, and are not expected to result, in a Material Adverse Effect;

 

(e)                                  any
change by the Company in its accounting principles, methods or practices or in
the manner it keeps its accounting books and records; and

 

7

 

(f)                                    any
other event or condition of any character, except for such events and
conditions that have not resulted, either individually or collectively, in a
Material Adverse Effect.

 

3.12                           Full
Disclosure.  The information
contained in this Agreement, the Disclosure Letter and the SEC Documents with
respect to the business, operations, results of operations and financial
condition of the Company, and the transactions contemplated by this Agreement,
taken together, are true and complete in all material respects and do not omit
to state any material fact necessary in order to make the statements therein,
in light of the circumstances under which they were made, not misleading.

 

4.                                      REPRESENTATIONS, WARRANTIES AND AGREEMENTS OF SILICON CAPITAL.

 

Intel Capital represents and warrants to the Company
as follows:

 

4.1                                 Investigation;
Economic Risk.  Intel Capital has
received or has had full access to all of the information it considers
necessary or appropriate to make an informed investment decision with respect
to the Rights to be purchased by Intel Capital under this Agreement.  Intel Capital further has had an opportunity
to ask questions and receive answers from the Company regarding the terms and
conditions of the offering of the Rights and the shares of Common Stock into
which they are convertible, exercisable or exchangeable and to obtain
additional information (to the extent the Company possessed such information or
could acquire it without unreasonable effort or expense) necessary to verify
any information furnished to Intel Capital or to which Intel Capital had
access.  The foregoing, however, does
not in any way limit or modify the representations and warranties made by the
Company in Section 3.  Intel Capital
understands that the purchase of the Rights involves substantial risk.  Intel Capital acknowledges that it is able
to fend for itself in the transactions contemplated by this Agreement and has
the ability to bear the economic risks of its investment pursuant to this
Agreement and has such knowledge and experience in financial or business
matters that it is capable of evaluating the merits and risks of this
investment in the Rights and the shares of Common Stock into which they are
convertible, exercisable or exchangeable and protecting its own interests in
connection with this investment.

 

4.2                                 Purchase
for Own Account.  Intel Capital will
acquire the Rights, and any Additional Adjustment Rights for its own account,
not as a nominee or agent, and not with a view to or in connection with the
sale or distribution of any part thereof.

 

4.3                                 Exempt
from Registration; Restricted Securities. 
Intel Capital understands that the sale and issuance of the Rights and
any Additional Adjustment Rights and the issuance of any shares of Common Stock
upon conversion, exercise or exchange thereof will not be registered under the
Securities Act on the ground that the sale provided for in this Agreement is
exempt from registration under of the Securities Act, and that the reliance of
the Company on such exemption is predicated in part on Intel Capital’s
representations set forth in this Agreement. 
Intel Capital understands that the Rights, including any Additional
Adjustment Rights, and any shares of Common Stock issuable upon conversion,
exercise or exchange thereof are restricted securities within the meaning of
Rule 144 under the Securities Act, and must be held indefinitely unless
they are subsequently registered or an exemption from such registration is
available.  Intel Capital understands
that the Company is under no obligation to register any of the securities sold
hereunder except as provided in the Rights and Restrictions Agreement.

 

8

 

4.4                                 Accredited
Investor.  Intel Capital is an
“accredited investor” as that term is defined in Rule 501(a)(8) of Regulation D
as promulgated by the SEC under the Securities Act.

 

4.5                                 Legends.  Intel Capital agrees that the Rights,
including any Additional Adjustment Rights, and the shares of Common Stock
issuable upon conversion, exercise or exchange thereof, will bear legends and
be subject to the restrictions on transfer as provided in the Rights and
Restrictions Agreement.  In addition,
Intel Capital agrees that the Company may place stop transfer orders with its
transfer agents with respect to such instruments.  The appropriate portion of the legend shall be removed in
accordance with the provisions of the Rights and Restrictions Agreement and the
stop transfer orders shall be removed promptly upon delivery to the Company of
such satisfactory evidence as reasonably may be required by the Company that
such stop orders are not required to ensure compliance with the Securities Act.

 

4.6                                 Organization
Good Standing and Qualification. 
Intel Capital is a corporation duly organized, validly existing and in
good standing under the laws of the Cayman Islands and has all corporate power
and authority required to (a) carry on its business as presently conducted, and
(b) enter into this Agreement, the Rights Agreement, the Rights and
Restrictions Agreement and the Business Agreement and to consummate the
transactions contemplated hereby and thereby.

 

4.7                                 Due
Authorization;  Capitalization.  Intel Capital has the requisite corporate
power and authority to enter into this Agreement, the Rights Agreement and the
Rights and Restrictions Agreement and to perform its obligations hereunder and
thereunder.  Intel Capital is an
indirect, wholly-owned subsidiary of Intel and all outstanding shares of
capital stock of Intel Capital are owned free and clear of any pledge, lien or
security interests.  The execution and
delivery of this Agreement, the Rights Agreement and the Rights and
Restrictions Agreement, and performance by Intel Capital of its obligations
hereunder and thereunder, have been duly authorized by all necessary corporate
action on the part of Intel Capital. 
This Agreement constitutes, and the Rights Agreement and the Rights and
Restrictions Agreement, when executed and delivered by the parties thereto,
will constitute, valid and legally binding obligations of Intel Capital,
enforceable against the Intel Capital in accordance with their respective
terms, except (a) as may be limited by (i) applicable bankruptcy, insolvency,
reorganization or others laws of general application relating to or affecting
the enforcement of creditors’ rights generally and (ii) the effect of rules of
law governing the availability of equitable remedies and (b) as rights to
indemnity or contribution may be limited under federal or state securities laws
or by principles of public policy thereunder.

 

4.8                                 Governmental
Consents.  No consent, approval,
order or authorization of, or registration qualification, designation,
declaration or filing with, any federal, state or local governmental authority
on the part of Intel Capital is required in connection with the consummation of
the transactions contemplated by this Agreement, except (i) compliance
with the HSR Act which may be required for the conversion, exercise or exchange
of the Rights for Common Stock, and (ii) as expressly required or
contemplated by the terms of the Rights and Restrictions Agreement.

 

4.9                                 Non-Contravention.  The execution, delivery and performance of
this Agreement, the Rights Agreement and the Rights and Restrictions Agreement
by Intel Capital, and the consummation by Intel Capital of the transactions
contemplated hereby and thereby, do not and will not (i) contravene or conflict
with the Certificate of Incorporation or Bylaws of Intel Capital,

 

9

 

as amended; (ii) constitute a violation of any provision of any
federal, state, local or foreign law binding upon or applicable to Intel
Capital; or (iii) constitute a default or require any consent under, give rise
to any right of termination, cancellation or acceleration of, or to a loss of
any benefit to which Intel Capital is entitled under, or result in the creation
or imposition of any lien, claim or encumbrance on any assets of Intel Capital
under, any contract to which Intel Capital is a party or any permit, license or
similar right relating to Intel Capital or by which Intel Capital may be bound,
except in the case of clause (ii) and (iii) as, individually or in the
aggregate, would not have a Material Adverse Effect.

 

4.10                           Restrictions
on Hedging.  Neither Intel Capital
nor any of its Affiliates as of the Closing holds any short position with
respect to the Company’s Common Stock or is a party to any other contract,
option, right, warrant to sell, purchase, lend, or otherwise transfer or
dispose of, directly or indirectly, any shares of Common Stock of the Company
or any securities convertible or exercisable into shares of Common Stock of the
Company, including any swap or other derivative contract that transfers, in
whole or in part, any of the economic consequences of ownership of the Common
Stock of the Company (a “Hedging Transaction”). Intel Capital and its
Affiliates agree not to enter into any such Hedging Transaction until such time
following the public dissemination of the press release contemplated by Section
7.4 hereof and the filing by the Company of a Current Report on Form 8-K with
respect to the transaction after Closing (provided such filing is made within
two (2) trading days of the Closing).

 

5.                                      AFFIRMATIVE
COVENANTS OF THE COMPANY.

 

The Company covenants to Intel Capital as follows:

 

5.1                                 Listing
of Shares.  Within thirty (30) days
following the Closing, the Company shall take action so that the shares of
Common Stock issuable upon conversion, exercise or exchange of the Rights will
be listed on the New York Stock Exchange upon official notice of issuance.

 

6.                                      CLOSING
CONDITIONS.

 

6.1                                 Conditions
to Intel Capital’s Obligations.  The
obligations of Intel Capital to consummate the transactions contemplated by
this Agreement at the Closing are subject to the fulfillment or waiver, on or
before the Closing, of each of the following conditions:

 

(a)                                  Representations
and Warranties True.  (i) Each
of the representations and warranties of the Company contained in Section 3 and
qualified by “Material Adverse Effect” or the term “material” will be true and
correct on and as of the date hereof and on and as of the date of the Closing,
and (ii) each of the representations and warranties of the Company contained
in Section 3 and not qualified by “Material Adverse Effect” or the term
“material,” disregarding all qualifications and exceptions contained therein
relating to materiality, will be true and correct in all material respects on
and as of the date hereof and on and as of the date of the Closing, in each
case with the same effect as though such representations and warranties had
been made as of the Closing.

 

(b)                                 Performance.  The Company will have performed and complied
with all agreements, obligations and conditions contained in this Agreement
that are required to be

 

10

 

performed or complied with by it on or before the Closing and will have
obtained all approvals, consents and qualifications necessary to complete the
purchase and sale described herein.

 

(c)                                  Compliance
Certificate.  The Company will have
delivered to the Intel Capital at the Closing a certificate signed on its
behalf by its Chief Executive Officer or Chief Financial Officer certifying
that the conditions specified in Section 6.1(a) and (b) hereof have been
fulfilled.

 

(d)                                 Securities
Exemptions. The offer and sale of the Rights to Intel Capital pursuant to
this Agreement and the Rights Agreement will be exempt from the registration
requirements of the Securities Act and the registration and/or qualification
requirements of all applicable state securities laws.

 

(e)                                  Proceedings
and Documents.  All corporate and
other proceedings in connection with the transactions contemplated at the
Closing and all documents incident thereto will be reasonably satisfactory in
form and substance to Intel Capital, and Intel Capital will have received all
such counterpart originals and certified or other copies of such documents as
it may reasonably request.  Such documents
shall include (but not be limited to) the following:

 

(i)                                     Certified
Charter Documents.  A copy of the
Certificate of Incorporation certified as of a recent date by the Secretary of
State of Delaware as a complete and correct copy thereof, and the Bylaws of the
Company (as amended through the date of the Closing), certified by the
Secretary of the Company as true and correct copies thereof as of the Closing.

 

(ii)                                  Board
Resolutions.  A copy, certified by
the Secretary of the Company, of the resolutions of the Board of Directors of
the Company providing for the approval of the transactions contemplated by this
Agreement, the Rights Agreement, the Rights and Restrictions Agreement and the
Business Agreement and the issuance of the Rights, including, as applicable,
the Additional Adjustment Shares, and the shares of Common Stock issuable upon
conversion, exercise or exchange thereof.

 

(f)                                    Opinion
of Company Counsel.  Intel Capital
will have received an opinion on behalf of the Company, dated as of the date of
the Closing, from counsel to the Company, in form and substance reasonably
satisfactory to Intel Capital.

 

(g)                                 Other
Agreements.  The Company will have
executed and delivered the Rights Agreement, the Rights and Restrictions
Agreement and the Business Agreement.

 

6.2                                 Conditions
to the Company’s Obligations.  The
obligations of the Company to consummate the transactions contemplated by this
Agreement at the Closing are subject to the fulfillment or waiver on or before
the Closing, of each of the following conditions:

 

(a)                                  Representations
and Warranties True.  (i) Each
of the representations and warranties of Intel Capital contained in Section 4
and qualified by “Material Adverse Effect” or the term “material” will be true
and correct on and as of the date hereof and on and as of the date of the
Closing, and (ii) each of the representations and warranties of Intel
Capital contained in Section 4 and not qualified by “Material Adverse
Effect” or the term “material,” disregarding all

 

11

 

qualifications and exceptions contained therein relating to
materiality, will be true and correct in all material respects on and as of the
date hereof and on and as of the date of the Closing, in each case with the
same effect as though such representations and warranties had been made as of
the Closing.

 

(b)                                 Performance.  Intel Capital will have performed and
complied with all agreements, obligations and conditions contained in this
Agreement that are required to be performed or complied with by it on or before
the Closing and will have obtained all approvals, consents and qualifications
necessary to complete the purchase and sale described herein.

 

(c)                                  Payment
of Purchase Price.  Intel Capital
will have delivered to the Company the Purchase Price of the Rights as
specified in and in accordance with Section 2.1.

 

(d)                                 Securities
Exemptions.  The offer and sale of
the Rights to Intel Capital pursuant to this Agreement will be exempt from the
registration requirements of the Securities Act and the registration and/or
qualification requirements of all applicable state securities laws.

 

(e)                                  Other
Agreements.  Intel Capital will have
executed and delivered the Rights Agreement and the Rights and Restrictions
Agreement, and Intel will have executed and delivered the Business Agreement.

 

7.                                      CONFIDENTIALITY
OBLIGATIONS.

 

7.1                                 Obligations.  Except to the extent required by law or
judicial order or except as provided herein, each party to this Agreement will
hold any of the other’s Confidential Information (as defined in the next
paragraph) in confidence and will: (i) use the same degree of care to prevent
unauthorized disclosure or use of the Confidential Information that the
receiving party uses with its own information of like nature (but in no event
less than reasonable care), (ii) limit disclosure of the Confidential
Information, including any materials regarding the Confidential Information
that the receiving party has generated, to such of its employees and
contractors as have a need to know the Confidential Information to accomplish
the purposes of this Agreement, and (iii) advise its employees, agents and
contractors of the confidential nature of the Confidential Information and of
the receiving party’s obligations under this Agreement and the Corporate
Non-Disclosure Agreement #19096.

 

7.2                                 Certain
Definitions.  For purposes of this
Agreement, the term “Confidential Information” includes this Agreement,
the Rights Agreement, the Business Agreement and the Rights and Restrictions
Agreement (collectively, the “Transaction Agreements”).  Any employee or contractor of the receiving
party having access to the Confidential Information will be required to sign a
non-disclosure agreement protecting the Confidential Information if not already
bound by such a non-disclosure agreement.

 

7.3                                 Non-Disclosure
of Agreements.  Except to the extent
required by law or judicial order or except as provided herein, neither party
shall disclose the Transaction Agreements or any of their terms without the
other’s prior written approval, which approval will not be delayed or
unreasonably withheld.  Either party may
disclose the Transaction Agreements to the extent required by law or judicial
order, provided that if such disclosure is pursuant to judicial order or proceedings,
the disclosing party will notify the other party promptly before such
disclosure and

 

12

 

will cooperate with the other party to seek confidential treatment with
respect to the disclosure if requested by the other party and provided further
that if such disclosure is required pursuant to the rules and regulations of
any federal, state or local organization, the parties will cooperate to seek
confidential treatment of the Transaction Agreements to the maximum extent
possible under law.  Notwithstanding the
foregoing, in the absence of any prior disclosure of any of the Transaction
Agreements or the terms thereof pursuant to this Section 7.3, each party
may disclose the Transaction Agreements or any of their terms to its agents or
third party consultants who have a need to know arising out of the
establishment, implementation, administration, termination or enforcement of
the Transaction Agreements provided such agents are informed of the
confidential nature of the Transaction Agreements and the terms thereof and are
bound, either by statutory rules of professional responsibility to maintain
client confidences with respect thereto or, in the absence of such statutory
duties, are bound by the terms of a applicable nondisclosure agreement that
treats as confidential information the Transaction Agreements and the terms
thereof.

 

The Company agrees that it will provide Intel Capital
with the relevant portions of any drafts of any documents, press releases or
other filings in which the Agreement or its contents are to be disclosed prior
to the filing thereof to consult with the Company as to the contents of such
filing.  The Company will endeavor to
provide adequate opportunity for Intel Capital review and comments prior to any
disclosure or filing.  The minimum prior
notice to Intel Capital for such review is two (2) business days.

 

7.4                                 Public
Announcements.  Upon execution of
this Agreement, the parties will mutually agree on language to be included in
press release(s) announcing the existence of the transactions contemplated by
this Agreement, which press release will be issued promptly following the
execution of this Agreement.

 

7.5                                 Third
Party Information.  Neither party
will be required to disclose to the other any confidential information of any
third party without having first obtained such third party’s prior written
consent.

 

7.6                                 Other
Disclosures.  Except as otherwise
provided for in Sections 7.3. 7.4, 7.5 and 7.7 hereof, all confidential
information exchanged by the parties will be disclosed pursuant to the Intel
Corporation/Micron Technology, Inc. Corporate Non-Disclosure Agreement #19096.

 

7.7                                 Disclosure
of Tax Treatment, Etc. 
Notwithstanding anything herein to the contrary, any party to this
Agreement or the other Transaction Agreements (and any employee,
representative, or other agent of any party to this Agreement or the other
Transaction Agreements) may disclose to any and all persons, without limitation
of any kind, the tax treatment and tax structure of the transactions
contemplated by this Agreement and the other Transaction Agreements and all
materials of any kind (including opinions or other tax analyses) that are
provided to it relating to such tax treatment and tax structure; provided,
however, that this sentence shall not permit any disclosure that
otherwise is prohibited by this Agreement or the other Transaction Agreements
if such disclosure would result in a violation of federal or state securities
laws, and provided, further, that this sentence shall not permit
disclosure of any information to the extent not related to the tax aspects of
the transactions contemplated by this Agreement or the other Transaction
Agreements.  The parties to this
Agreement acknowledge that they have no knowledge or reason to know that such
disclosure is otherwise limited.

 

13

 

8.                                      MISCELLANEOUS.

 

8.1                                 Governing
Law.  This Agreement shall be
governed in all respects by and construed in accordance with the laws of the State
of Delaware, without regard to provisions regarding choice of laws.  Jurisdiction shall be in the courts of the
state of domicile of the defending party to the original action.

 

8.2                                 Survival.  The representations, warranties, covenants
and agreements made herein shall survive any investigation made by any party
hereto and the closing of the transactions contemplated hereby, provided that
the representations and warranties set forth herein shall terminate as of the
first anniversary of the date hereof (other than with respect to any claims
asserted prior to such date, as to which they shall survive solely for the
purpose of resolving such claims until the resolution thereof).

 

8.3                                 Successors
and Assigns.  Except as otherwise
expressly provided herein, the provisions hereof shall inure to the benefit of,
and be binding upon, the successors, assigns, heirs, executors and
administrators of the parties hereto. 
This Agreement and the rights and obligations herein may not be assigned
by Intel Capital without the prior written consent of the Company, except to a
Qualified Subsidiary (as defined in the Rights and Restrictions Agreement) or
the Parent.  This Agreement and the
rights and obligations herein may not be assigned by the Company without the
prior written consent of Intel Capital.

 

8.4                                 Entire
Agreement.  This Agreement, the
Rights Agreement, the Rights and Restrictions Agreement and the Business
Agreement, and the agreements, exhibits and schedules referred to herein and
therein constitute the entire understanding and agreement between the parties
with regard to the subjects hereof and thereof; provided, however,
that nothing in this Agreement shall be deemed to terminate or supersede the
provisions of any confidentiality and nondisclosure agreements executed by the
parties hereto prior to the date hereof, which agreements shall continue in
full force and effect until terminated in accordance with their respective
terms.

 

8.5                                 Notices.  Except as may be otherwise provided herein,
all notices, requests, waivers and other communications made pursuant to this
Agreement shall be in writing  and shall
be delivered to the other party (a) in person; (b) by facsimile to the address
and number set forth below, when promptly followed up by another of the
delivery methods permitted by this Section 8.5; (c) by U.S. mail, registered or
certified, return receipt requested, postage prepaid and addressed to the other
party as set forth below; or (d) by a national-recognized overnight delivery
service that keeps records of deliveries and attempted deliveries (such as
FedEx), postage prepaid, addressed to the parties as set forth below with
next-business-day delivery guaranteed, provided that the sending party receives
a confirmation of delivery from the delivery service provider.

 

14

 

	
  To Intel Capital:

  	
   

  	
  To the Company:

  
	
   

  	
   

  	
   

  
	
  Intel Capital
  Corporation

  	
   

  	
  Micron
  Technology, Inc.

  
	
  c/o Intel
  Corporation

  	
   

  	
  8000 S. Federal
  Way

  
	
  2200 Mission
  College Blvd, M/S RN6-46

  	
   

  	
  P.O. Box 6

  
	
  Santa Clara,
  California  95052

  	
   

  	
  Boise,
  Idaho  83716

  
	
  Attn:  Intel Capital Portfolio Manager

  	
   

  	
  Attn:  Chief Financial Officer

  
	
  Fax Number:  (408) 765-6038

  	
   

  	
  Fax Number:  (208) 308-2900

  
	
   

  	
   

  	
   

  
	
  with copies by email to:

  	
   

  	
  with copies to:

  
	
   

  	
   

  	
   

  
	
  portfolio.manager@intel.com

  	
   

  	
  Micron Technology, Inc.

  
	
   

  	
   

  	
  8000 S. Federal Way

  
	
   

  	
   

  	
  P.O. Box 6

  
	
   

  	
   

  	
  Attn: 
  General Counsel

  
	
   

  	
   

  	
  Fax Number: (208) 308-4509

  

 

A party may change or supplement the addresses given
above, or designate additional addresses, for purposes of this Section 8.5 by
giving the other party written notice of the new address in the manner set
forth above.

 

8.6                                 Amendments.  Any term of this Agreement may be amended
only with the prior written consent of the Company and Intel Capital.

 

8.7                                 Delays
or Omissions.  No delay or omission
to exercise any right, power or remedy accruing to the Company or to Intel
Capital, upon any breach or default of any party hereto under this Agreement,
shall impair any such right, power or remedy of the Company or Intel Capital,
nor shall it be construed to be a waiver of any such breach or default, or an
acquiescence therein, or of any similar breach or default thereafter
occurring.  Any waiver, permit, consent
or approval of any kind or character on the part of the Company or Intel
Capital of any breach or default under this Agreement or any waiver on the part
of the Company or Intel Capital of any provisions or conditions of this
Agreement, must be in writing and shall be effective only to the extent
specifically set forth in such writing. 
All remedies, either under this Agreement, or by law or otherwise
afforded to the Company or Intel Capital shall be cumulative and not
alternative.

 

8.8                                 Legal
Fees.  In the event of any action at
law, suit in equity or arbitration proceeding in relation to this Agreement or
any units or securities of the Company issued or to be issued, the prevailing
party shall be paid by the other party a reasonable sum for attorney’s fees and
expenses for such prevailing party.

 

8.9                                 Titles
and Subtitles.  The titles of the
sections and subsections of this Agreement are for convenience of reference
only and are not to be considered in construing this Agreement.

 

8.10                           Counterparts.  This Agreement may be executed in
counterparts, each of which shall be an original, but both of which together
shall constitute one instrument.

 

8.11                           Severability.  Should any provision of this Agreement be
determined to be illegal or unenforceable, such determination shall not affect
the remaining provisions of this Agreement.

 

15

 

8.12                           Dispute
Resolution.  The parties agree to
negotiate in good faith to resolve any dispute between them regarding this
Agreement. If the negotiations do not resolve the dispute to the reasonable
satisfaction of both parties, then each party shall nominate one senior officer
of the rank of Vice President or higher as its representative.  These representatives shall, within thirty
(30) days of a written request by either party to call such a meeting, meet in
person and alone (except for one assistant for each party) and shall attempt in
good faith to resolve the dispute. If the disputes cannot be resolved by such
senior managers in such meeting, the parties agree that they shall, if
requested in writing by either party, meet within thirty (30) days after such
written notification for one day with an impartial mediator and consider
dispute resolution alternatives other than litigation.  If an alternative method of dispute
resolution is not agreed upon within thirty (30) days after the one day
mediation, either party may proceed as they see fit. This procedure shall be a
prerequisite before taking any additional action hereunder.

 

8.13                           No
Third Parties Benefited.  This
Agreement is made and entered into for the protection and benefit of the
parties hereto and their permitted successors and assigns, and, except as
expressly provided herein, no other Person shall be a direct or indirect
beneficiary of or have any direct or indirect cause of action or claim in
connection with this Agreement or any of the documents executed in connection
herewith.

 

8.14                           Meaning
of Include and Including. Whenever in this Agreement the word “include” or
“including” is used. it shall be deemed to mean “include, without limitation”
or “including, without limitation,” as the case may be. and the language
following “include” or “including” shall not be deemed to set forth an
exhaustive list.

 

8.15                           Fees,
Costs and Expenses. All fees, costs and expenses (including attorney’s’
fees and expenses) incurred by either party hereto prior to the Closing in
connection with the preparation, negotiation and execution of this Agreement,
the Rights Agreement, the Rights and Restrictions Agreement and the Business
Agreement and the consummation of the transactions contemplated hereby and
thereby (including the costs associated with any filings with, or compliance
with any of the requirements of, any governmental authorities), shall be the
sole and exclusive responsibility of such party.

 

8.16                           Competition.  Nothing set forth herein shall be deemed to
preclude, limit or restrict the Company’s or Intel Capital’s and their
respective Affiliates’ ability to compete with the other.

 

16

 

IN WITNESS WHEREOF, the parties have
executed this Securities Purchase Agreement as of the date first written above.

 

 

	
  INTEL
  CAPITAL CORPORATION

  	
  MICRON
  TECHNOLOGY, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Arvind
  Sodhani

  	
   

  	
  By:

  	
  /s/ W.G. Stover,
  Jr.

  	
   

  
	
   

  	
  Name: Arvind Sodhani

  	
   

  	
  Name: W.G. Stover, Jr.

  
	
   

  	
  Title: Vice President and Treasurer

  	
   

  	
  Title:

  	
  Vice President of Finance and

  
	
   

  	
   

  	
   

  	
   

  	
  Chief Financial Officer

  
							

 

 

{Signature Page to
Securities Purchase Agreement}

 

17

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