Document:

TCC License Agreement

 Exhibit 10.1 
 Tessera and Micron Confidential 
 TESSERA, INC. 
 TCC® License Agreement

 This Agreement is entered into as of this First day of July 2006 (“Effective Date”), between TESSERA INC., a corporation organized
under the laws of Delaware, having a principal place of business at 3099 Orchard Drive, San Jose, CA, 95134, USA and the Tessera Affiliates (“Tessera”) and Micron Technology, Inc. a corporation organized under the laws of Delaware having a
principal place of business at 8000 S. Federal Way, Boise Idaho 83707 and the Micron Affiliates (“Licensee”) with reference to the following facts: 
 Recitals 
 WHEREAS, Tessera owns certain patents related to semiconductor integrated circuit (“IC”)
packaging technology, and 
 WHEREAS, Licensee wishes to license the Tessera patents for certain semiconductor products in accordance with the terms hereof.

 The Parties Hereto Agree: 
 I.
Definitions. As used herein, the following terms shall have the following meaning: 
 A. The term “Licensed Product” includes
IC packages using (a) polyimide or glass-epoxy or glass-laminate substrate; (b) one or more solder balls under the IC; (c) die attach adhesive attaching the IC to the polyimide or glass-epoxy or glass-laminate substrate; and
(d) solder ball pitch less than or equal to 1.0mm. 
 B. The term “DRAM Device” means a Dynamic Random Access Memory (DRAM) IC
device comprised solely of an array of DRAM cells and the associated control and I/O circuitry that are necessary to allow data to be written to, stored by, and read from the DRAM cells. 
 C. The term “DRAM Licensed Product” means a Licensed Product that contains at least one IC that is a DRAM Device and does not contain an IC
that is not a DRAM Device. 
 D. The term “Non-DRAM Licensed Product” means a Licensed Product that contains at least one IC that
is not a DRAM Device. If a Licensed Product contains both a DRAM Device and an IC that is not a DRAM Device, the Licensed Product shall be considered a Non-DRAM Licensed Product. 
 E. The term “Multiple Substrate Licensed Product” means a “Package Stack Unit” and a “Package Stack,” defined respectively
as follows: 
 i. The term “Package Stack Unit” means a package substrate having electrically conductive terminals and at least one
IC device on the package substrate and electrically connected to at least some of the terminals, and 
 ii. The term “Package
Stack” means an IC package including two or more Package Stack Units, wherein said units are stacked one above the other so that at least some of the terminals 

  

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on mutually adjacent units in the stack are aligned with one another, mutually adjacent units being electrically interconnected to one another by joining
connectors formed at least in part from material bonded to the aligned terminals of such units. 
 F. The term “Batch Technology”
as used herein means any method, process, technique or Tessera Patent that covers any structures or processing methods for simultaneously forming, producing and/or connecting a plurality of electrical connections between contacts on an IC device and
substrate terminals of the IC package, including: (i) any method or result of U.S. Patent Number 5,518,964 (and related Patents) for making flexible electrically conducting element(s), joining said elements to electrical contact(s) on a
substantially planar electrical element such as a semiconductor integrated circuit, undiced IC wafer, or interconnect substrate, and forming said element(s) away from the plane of said contacts in a predetermined fashion into the flexible electrical
lead(s) of an IC package; (ii) any method or result of U.S. Patent 5,455,390 (and related Patents) for making and forming flexible conducting element(s) on a dielectric film and then simultaneously joining said elements to electrical contacts
on a substantially planar electrical element such as a semiconductor integrated circuit, undiced IC wafer or interconnect substrate to produce the flexible electrical leads of an IC package; and/or (iii) any method or result of further
invention or Patent made or acquired by Tessera during the term hereof covering any batch processing method for simultaneously forming, producing and/or connecting a plurality of flexible electrical leads of an IC package. Notwithstanding, the
parties expressly agree that any IC package made and/or connected individually on a semiconductor integrated circuit or undiced wafer by traditional wire bonding methods and/or tape automated bonding (“TAB”) gang bonding methods, is
not included in Batch Technology. 
 G. The term “Patent” means letters patent, utility models, allowances and
applications therefor in all countries of the world, including re-issues, re-examinations, continuations, continuations-in-part, divisionals, and all corresponding foreign patents. 
 H. The term “Tessera Patent” means Patent(s) or claims within such Patent(s) for the design, manufacture, and/or assembly of Licensed Products
(excluding Batch Technology as defined herein) owned by Tessera prior to expiration or termination of this Agreement. The term Tessera Patent shall further include any third party patent for the design, manufacture, and/or assembly of Licensed
Products (excluding Batch Technology as defined herein) under which Tessera or any successor thereof has the right to grant licenses of the scope granted herein, as of the Effective Date or at any time during the term of this Agreement, without the
payment of royalty or other consideration to such third parties except for payment to third parties for inventions made by said parties while employed by Tessera or any successor thereof. Notwithstanding the preceding provision, Tessera shall
license to Licensee any third party patent for the design, manufacture, and/or assembly of Licensed Products (excluding Batch Technology as defined herein) under which Tessera or any successor thereof has the right to grant licenses of the scope
granted herein to Licensee upon payment of a royalty or other consideration to such third parties if Licensee agrees to pay and does pay such royalty or other consideration. Tessera Patents, as defined above, includes but is not limited to those
Patents set forth in Attachment A as of the date stated therein. Tessera has sole discretion in the prosecution of the Tessera patent applications licensed hereunder, non-exclusively including filing continuations, continuations-in-part,
divisionals, filing corresponding foreign patents applications and/or abandoning one or more of such patent applications. 
  

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 I. The term “Billable Pin” means any electrical connection to an IC electrical bond pad
made or contained in any Licensed Product. 
 J. The term “Micron Affiliate” means any company that has more than fifty percent
(50%) of the voting stock or equity owned or controlled by Micron Technology, Inc.. A company shall be considered a Micron Affiliate only so long as such majority ownership or control exists. Micron Technology, Inc., shall be ultimately
responsible for the actions of the Micron Affiliates pursuant to this Agreement. 
 K. The term “Tessera Affiliate” means any
company that has more than fifty percent (50%) of the voting stock or equity owned or controlled by Tessera. A company shall be considered a Tessera Affiliate only so long as such majority ownership or control exists. Tessera shall be
ultimately responsible for the actions of the Tessera Affiliates pursuant to this Agreement. 
 L. The term “Licensed Package
Assembler” means a party licensed by Tessera to assemble, use and sell Licensed Products for others. Tessera agrees to periodically provide Licensee a list of such parties. 
 II. Licensee Rights 
 A. License
Grant. Subject to the terms and conditions hereinafter set forth, Licensee’s compliance with the provisions hereof including all Attachments hereto, and Licensee’s payment of the fees and royalties stated herein in Paragraph III,
Tessera hereby grants Licensee a world-wide, non-exclusive, non-transferable, non-sublicensable, limited license to the Tessera Patents to make, have made, use, sell, import, and offer for sale of Licensed Products that are sold as Licensee’s
own products (i.e., the Licensed Products bear the Licensee’s commercial indicia). 
 1. Have Made Rights and Royalties. If
Licensee exercises its “have made” right hereunder, Licensee shall be responsible for the payment of all royalties due hereunder directly to Tessera for such assembly of Licensed Products regardless of whether or not the assembler of the
Licensed Product is a Licensed Package Assembler. Nothing in this Paragraph II.A.1 shall prevent Licensee from agreeing with a Licensed Package Assembler that the Licensed Package Assembler shall report and pay royalties to Tessera under its license
for all Licensed Products made for Licensee provided, however, that if such Licensed Package Assembler fails to report and pay such royalties, Licensee shall pay the unpaid royalties under this Agreement promptly upon notice by Tessera. Licensee
shall have no obligation to pay an additional royalty under this agreement for products on which a Licensed Package Assembler has already paid a full royalty under its agreement with Tessera. Any such agreement reached between Licensee and a
Licensed Package Assembler shall require such Licensed Package Assembler to clearly identify Licensed Products made for Licensee in reports to Tessera, and Tessera shall be given notice of such agreement. 
 2. Notice to Assemblers. When Licensee exercises this “have made” right at a Licensed Package Assembler, it shall provide a written
notice to such Licensed Package Assembler, with a copy to Tessera, stating whether the Licensee or the Licensed Package Assembler shall pay all royalties due for such manufacture directly to Tessera. When Licensee exercises this “have
made” right at an assembler who is not a Licensed Package Assembler (“Unlicensed Package Assembler”), Licensee shall provide written notice to Tessera identifying such Unlicensed Package Assembler provided, however, that identifying
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written royalty report of Paragraph V.A and Attachment C shall be deemed as meeting the notice requirement for such Unlicensed Package Assembler under this
Paragraph II.A.2. 
 3. Purchase and Resale of Licensed Products. Should Licensee purchase for resale Licensed Products for which a
third party has already paid a royalty to Tessera, Licensee may resell such Licensed Products without payment of an additional royalty to Tessera. 
 B. Batch Technology Excluded. Notwithstanding anything herein to the contrary, Batch Technology is excluded from the scope of this Agreement, and Licensee’s and Tessera’s rights herein expressly exclude any right to package
and/or assemble, or sell any product made using Batch Technology. 
 C. No Implied License. Except for the licenses expressly granted
in Paragraph II.A, no license, express or implied, by estoppel or otherwise, to any of Tessera’s intellectual property rights is granted or implied by this Agreement. 
 D. Exclusion from License. Licensee is licensed only for Licensed Products for which Licensee or a third party has satisfied a royalty obligation
to Tessera. Tessera may, at any time during the term hereof, notify Licensee that Tessera believes that a product made, used, sold, imported, or offered for sale by Licensee (“Notified Product”) is a Licensed Product. During a sixty
(60) day period after such notice, the parties will engage in good faith negotiations to determine whether such Notified Product is a Licensed Product, but neither party will commence any litigation or administrative proceedings relating to the
Notified Product until after the end of the sixty (60) day period. If the parties fail to agree on whether such Notified Product is a Licensed Product during such period, the Notified Product will not be licensed hereunder and either party may
commence litigation or administrative proceedings upon the expiration of the sixty (60) day period. 
 E. Mandatory Negotiations for
Patents Outside of License Grants. If during the term of this Agreement, either party believes that the other party infringes one or more Patents in a manner not within the scope of the licenses granted under Paragraph II.A (for Licensee) and
Paragraph VI.A (for Tessera), to commence patent litigation against the other party, the party must first provide notice to the other party and, for a six (6) month period after such notice, the parties will engage in good faith negotiations to
determine whether there is infringement of any valid Patent, and if so, to negotiate the terms of an appropriate license. If the parties fail to agree on whether the non-Licensed Product infringes or does not infringe any Patent or the appropriate
terms of a license, either party may commence litigation upon the expiration of the six (6) month period by filing a claim in a state or federal court within the geographic boundaries of the federal Northern District of California, and the
parties hereby consent to personal jurisdiction and venue in the state and federal courts of the Northern District of California. 
 F.
Limitations on Patent Challenges. Licensee agrees that it shall not challenge the validity or enforceability of the Tessera Patents licensed hereunder (or fund or sponsor such a challenge) unless Tessera first asserts a Tessera Patent against
Licensee seeking royalties for products that do not meet the definition of DRAM Licensed Products or Non-DRAM Licensed Products, whereupon Licensee, subject to Paragraph II.E, may assert the defenses of invalidity and unenforceability against the
asserted Tessera Patent(s) in litigation or in the U.S. or foreign patent office solely with respect to the claims of the Tessera Patent(s) asserted against such products. Notwithstanding the foregoing, any successful challenge of validity or
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Patent shall not affect Licensee’s obligation to pay royalties for DRAM Licensed Products and Non-DRAM Licensed Products under this Agreement. Should
Licensee challenge the validity or enforceability of a Tessera Patent licensed hereunder (or fund or sponsor such a challenge) in violation of this Paragraph II.F, such challenge would be a material breach of this Agreement allowing Tessera to
immediately terminate this Agreement without providing Licensee the opportunity to cure as provided in Paragraph VIII.B. 
 III. Fee and
Royalty 
 A. License Fee. As partial consideration for the licenses and privileges of Paragraph II.A hereof, Licensee shall pay
to Tessera the sum of Two Million US Dollars ($2,000,000) by July 31, 2006. 
 B. Royalty. Licensee shall pay running royalties
for the license granted in Paragraph II.A four times annually (as set forth in Paragraph V) to Tessera during the term of this Agreement, as follows: 
 1. DRAM Licensed Products. For each DRAM Licensed Product sold by Licensee, Licensee shall pay a royalty as set forth in Attachment B. 
 2. Non-DRAM Licensed Products. For each Non-DRAM Licensed Product sold by Licensee, Licensee shall pay a royalty as set forth in
Attachment B. 
 3. Multiple Substrate Licensed Products. In the case of a Multiple Substrate Licensed Product,
royalties due under this Paragraph III.B shall be calculated separately for each Package Stack Unit of a Package Stack based on whether the Package Stack Unit solely contains DRAM or includes other types of ICs. For example, the royalty due for a
Package Stack Unit that contains solely DRAM shall be determined according to Paragraph III.B.1 per Package Stack Unit, the royalty due for a Package Stack Unit that contains an IC that is not DRAM shall be determined according to Paragraph III.B.2
per Package Stack Unit, such that the total royalty due for a Multiple Substrate Licensed Product shall be calculated by adding together the royalty determined for each Package Stack Unit. 
 C. Royalty Adjustments. In making the royalty payments due Tessera, Licensee may subtract from such royalty payments any preceding royalty
payments for royalty bearing Licensed Products that are returned to Licensee from Licensee’s customers (“Royalty Adjustment”). However, if at any time such returned Licensed Products are resold by Licensee, Licensee shall pay a
royalty to Tessera for such resold Licensed Products, as set forth in the Agreement. Before a Royalty Adjustment can be so subtracted, Licensee must have originally paid a royalty on the particular returned Licensed Product. All Royalty Adjustments
must be specified with the information set forth in Attachment B. 
 D. Most Favored Nations. As of the Effective Date, Tessera, in
good faith, intends that any agreement that Tessera enters into henceforth with Infineon or Qimonda whereby Infineon or Qimonda receives identical rights, privileges, terms and conditions as contained in this Agreement, shall be on royalty rate
terms no more favorable to Infineon or Qimonda than the Royalty terms set forth in Paragraph III.B of this Agreement. In the event that Tessera grants a license to Qimonda or 

  

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Infineon that is subject to this Paragraph, then Tessera shall promptly notify Licensee of the financial terms of such other license. Upon notice by
Licensee, given within 30 days after such notice by Tessera, this Agreement shall be amended to substitute all of the royalty terms of such other license for the Royalty terms of this Agreement, provided that (a) Licensee must accept all of the
royalty terms of such other license, and may not select particular terms; and (b) such amendment shall not affect Tessera’s rights with respect to royalties or other moneys accrued and/or paid prior to such amendment. 
 IV. Taxes 
 Payments and royalties
due hereunder shall be calculated and paid by Licensee to Tessera on a “net cash” basis per the terms hereof and shall be free of and not reduced in any way by any imposed taxes or other assessments that may be levied by any government or
country except for those taxes that may be imposed and collected by the United States and/or the State of California. If Tessera receives any tax credits by the U.S. Government based upon the tax paid on the royalties paid to Tessera by Licensee,
Tessera will reimburse Licensee for in the amount corresponding to such U.S. tax credit. 
 V. Licensee Reports and Payment

 A. Quarterly Royalty Reports & Payment. Beginning on the Effective Date of this Agreement, royalties shall be
calculated and paid in full in quarter annual payment periods ending March 31, June 30, September 30 and December 31 of each year. Beginning with the first such royalty payment, Licensee shall deliver a written report
(as shown in Attachment C) describing (i) the basis upon which and containing the information sufficient to determine the royalties due Tessera for the applicable payment period and (ii) the purchases by Licensee of Licensed Products from
other Tessera licensees. All payments under this Paragraph shall be made in US Dollars by wire transfer to Union Bank of California, 99 Almaden Blvd., San Jose, CA 95113, Account Name: Tessera, Account No.: 6450148359, Routing No. 122000496,
International Swift Code: BOFCUS33MPK, or such other bank or account as Tessera may from time to time designate in writing. The payments of royalties and submission of such reports from Licensee to Tessera under this Paragraph shall be made within
thirty (30) days from the end of each quarter annual payment period and shall be considered to be made as of the day on which such payments are received in Tessera’s designated bank account. 
 B. Payment for Licensed Products Sold Before Effective Date. By July 31, 2006, Licensee shall pay Tessera Twenty-Eight Million U.S. Dollars
(US$28,000,000) for Licensee’s manufacture, use, sale, or offer for sale of Licensed Products prior to the Effective Date (“Past Production Payment”). The Past Production Payment relates solely to Licensed Products sold by Licensee
prior to the Effective Date (“Micron Past Licensed Products”) and shall not apply to retroactively immunize products that are not Micron Past Licensed Products and that were made by any other person or entity, including without limitation
products made by Micron Affiliates acquired by Micron after the Effective Date. Upon receipt of the Past Production Payment, Tessera agrees not to make any claims against any person or entity for its purchase, use, sale, importation or offer for
sale of the Micron Past Licensed Products. 
  

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 VI. Licensee Patents 
 A. Limited Rights Under Licensee’s Patents. Licensee hereby grants to Tessera a world-wide, royalty-free, non-exclusive, non-sublicensable,
non-transferable, right under Licensee’s Patents for the term of this Agreement to make, use and sell Licensed Products (subject to the Batch Technology exclusion of Paragraph II.B) for the purposes of internal research and development,
customer funded research and development, and in support of Tessera’s engineering services business. For the sake of clarity, the license granted to Tessera in this Section VI.A is limited to the IC package and interconnect of the Licensed
Product, alone or in combination with an IC, and does not include, for example, the functional circuitry on the die or semiconductor process technology used in the formation of the functional circuitry on the IC (hereafter “Micron License
Scope”). If Licensee elects to extend the term of this Agreement to obtain a paid-up license, then the license set forth in this Paragraph VI.A shall also become a fully paid-up and perpetual. Furthermore, to the extent that Licensee believes a
third party is directly infringing Licensee’s patents within the Micron License Scope, Licensee agrees to pursue its claims directly with such third party and not with Tessera unless Tessera first asserts a Tessera Patent against Licensee that
would require an additional royalty for Licensed Products made under this Agreement. 
 VII. This section intentionally left blank

 VIII. Term and Termination 
 A. Term: This Agreement shall become effective on the Effective Date and, unless earlier terminated as provided for elsewhere in this Agreement, shall remain in full force until it automatically expires on
May 22, 2012, unless Licensee notifies Tessera by November 22, 2011 that Licensee elects to extend this Agreement by five (5) years until May 22, 2017, and continue to pay royalties for Licensed Products during the five
(5) year extension period at rates equal to fifty percent (50%) of the amounts due under Paragraph III.B. herein. If Licensee elects to extend this Agreement until May 22, 2017, upon expiration of the extended term, Licensee shall
have a fully paid-up and perpetual license on the terms set forth in Paragraphs II.A through II.E herein to use the Tessera Patents to the same extent as Licensee was licensed to use and was using Tessera Patents immediately prior to such
expiration. 
 B. Termination for Breach. Either party may terminate this Agreement due to the other party’s breach of this
Agreement, such as failure to perform its duties, obligations, or responsibilities herein (including, without limitation, failure to pay fees and royalties and provide reports as set forth herein). The parties agree that such breach will cause
substantial damages to the party not in breach. Therefore, the parties agree to work together to mitigate the effect of any such breach; however, the non-breaching party may terminate this Agreement if such breach is not cured or sufficiently
mitigated (to the non-breaching party’s satisfaction) within sixty (60) days of notice thereof. 
 C. Termination for
Assignment. In the event that (i) a party either sells or assigns substantially all of its assets or business to a third party (“Selling Party”) or (ii) a third party acquires more than fifty percent (50%) of the capital
stock entitled to vote for directors of such party (“Purchasing Party”), the Selling Party shall notify the other party hereto of such sale or assignment of assets or the Purchasing Party’s acquisition. In any case of sale, assignment
or acquisition, the Selling Party shall provide to the other party a written confirmation from such Purchasing Party stating that such 

  

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Purchasing Party shall expressly undertake all the terms and conditions of this Agreement to be performed by Selling Party. In the event that Licensee is the
Selling Party and the Purchasing Party does not agree to fulfill such obligations under this Agreement, Tessera shall reserve a right to terminate this Agreement. In the event Tessera is the Selling Party, the Purchasing Party shall be bound to the
terms and obligations of this Agreement. 
 D. Termination for Bankruptcy. In the event that one party becomes insolvent or bankrupt,
permanently ceases doing business, makes an assignment for the benefit of its creditors, commits an act of bankruptcy, commences any bankruptcy proceedings or other proceedings in the nature of bankruptcy proceedings, or has commenced against it any
bankruptcy proceedings or other proceedings in the nature of bankruptcy proceedings that are not dismissed within sixty (60) days, then the other party shall have the right to terminate this Agreement immediately upon its notice. 
 E. Effect of Termination. Any termination of this Agreement pursuant to this Paragraph VIII shall be deemed a termination of this Agreement in
accordance with its terms (including termination of any payments of unaccrued royalties to Tessera and any rights of Licensee to use any Tessera Patent licensed hereunder). 
 F. Survival Clause. Unless otherwise provided elsewhere in this Agreement, the following provisions shall survive the termination or expiration of
this Agreement: 
 1. Licensee’s obligation to make payments to Tessera accrued under this Agreement on or prior to
expiration or termination. 
 2. Licensee’s obligation to submit written reports stipulated in Paragraph V, Licensee
Reports and Payment, and to permit the inspection and audit of its records stipulated in Paragraph IX, Reasonable Audit. 
 3.
Paragraph VIII, Term and Termination. 
 4. Paragraph X, No Warranties 
 5. Paragraph XI, Limitation on Damages 
 6. Paragraph XII, Confidentiality of Agreement Terms 
 7. Paragraph XIV, Miscellaneous

 IX. Reasonable Audit 
 A. Financial Audit. Upon reasonable written prior notice, Tessera shall have the right to examine and audit through an independent third party CPA firm, not more frequently than once per year, relevant records of Licensee that may
contain information bearing upon the amount of fees and royalties payable under this Agreement; provided, that the said auditor shall have agreed in 

  

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advance in writing to maintain in confidence and not to disclose to Tessera or any third party any Licensee proprietary information obtained during the
course of such audit. The parties shall mutually agree upon an independent third party CPA firm within thirty (30) days, provided, however, that such agreement shall not be unreasonably withheld by either party. Licensee shall permit auditors
to copy and retain audit relevant records in confidence. The results of any such audit shall be final, and within thirty (30) days after receiving the auditor’s report, Licensee shall make payment to Tessera of any amount which may be
found to be payable, if any, and Tessera shall make payment to Licensee of any amount which may be found to have been overpaid, if any. Tessera shall bear the expenses of such audit examinations unless fees and royalties due and owing to Tessera are
determined by the auditor to be at least five percent (5%) greater than such similar amounts as calculated and/or paid by Licensee, in which case Licensee shall bear such expenses. 
 X. No Warranties 
 The Parties
acknowledge and agree that the rights and licenses, Tessera Patents, Licensee patents and standards granted or otherwise provided hereunder are provided “AS IS”, with no warranty of any kind. NEITHER PARTY MAKE ANY WARRANTY, EXPRESS,
IMPLIED, STATUTORY OR OTHERWISE, CONCERNING THE SUBJECT MATTER OF THIS AGREEMENT, INCLUDING WITHOUT LIMITATION, WARRANTIES OF FITNESS FOR A PARTICULAR PURPOSE, QUALITY, USEFULNESS, PATENT VALIDITY OR NONINFRINGEMENT. Neither Party makes any warranty
that the Tessera Patents or the Licensee patents will be sufficient to yield any particular result. 
 XI. Limitation on Damages

 IN NO EVENT SHALL EITHER PARTY BE LIABLE TO THE OTHER PARTY OR ANY OTHER PERSON OR ENTITY (UNDER ANY CONTRACT, NEGLIGENCE, STRICT
LIABILITY OR OTHER THEORY) FOR SPECIAL, INCIDENTAL OR CONSEQUENTIAL DAMAGES ARISING OUT OF OR RELATED TO THE SUBJECT MATTER OF THIS AGREEMENT, EVEN IF THE PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES OR LOSSES. 
 XII. Confidentiality of Agreement Terms 
 A. Confidential Terms. Tessera and Licensee shall keep the terms of this Agreement (including all Attachments hereto) confidential except: 
 (1) to any court or governmental body or agency compelling such disclosure and subject to the notice and opportunity to object provisions of Paragraph XII.B; however, any disclosure shall be limited to that compelled
by the governmental body or agency and the disclosing party will take all reasonable actions to obtain a protective order protecting the disclosure; 
 (2) as may otherwise be required by law; 
 (3) disclosures to their respective attorneys,
accountants, and financial advisors; or 
 (4) either party may disclose to third parties the existence of this Agreement to
the extent described in the Recitals section hereof. 
 B. Order to Disclose. A party receiving a request, subpoena or order for the
disclosure of the terms or conditions of this Agreement shall notify the other party as soon as practicable and if, at all possible, in sufficient time to allow the other party to oppose disclose or seek appropriate 

  

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protective orders. The party receiving such request, subpoena or order shall cooperate to the extent reasonably possible with the other party in any effort
to oppose disclosure or seek protective orders. 
 C. Breach of Confidentiality. If either party learns of a breach of this Paragraph
XII, such party shall immediately send a written notification to the other party describing the circumstances of such breach. 
 D.
Employee Agreements. Licensee will disclose the terms of this Agreement solely to its employees who have a need to know such information. 
 E. Prior Confidentiality Terms. This Paragraph XII applies only to the matters described herein and does not supersede any prior written agreements between the parties. 
 XIII. This Section Intentionally Left Blank 
 XIV. Miscellaneous 
 The following additional terms shall apply to this Agreement: 
 A. Governing Law. This Agreement shall be governed, interpreted and construed in accordance with the laws of the State of California, irrespective
of choice of laws provisions. Both parties shall use reasonable efforts to resolve by mutual agreement any disputes, controversies, claims or difference which may arise from, under, out of or in connection with this Agreement. If such disputes,
controversies, claims or differences cannot be settled between the parties, any dispute resolution proceeding shall take place in the United States, but if either party files a claim in a state or federal court, such claim shall be filed in the
state or federal courts within the geographic boundaries of the federal Eastern District of Texas. The parties hereby consent to personal jurisdiction and venue in the state and federal courts of the Eastern District of Texas. Nothing herein shall
alter or affect any other rights either party may have to redress any breach or act of the other party. Notwithstanding any provision herein, after the sixty (60) day cure period set forth in Paragraph VIII.B (where required) and notice of
termination of this Agreement by one of the parties, either party may bring an action in the U.S. International Trade Commission. 
 B. No
Waiver. Any waiver, express or implied, by either of the parties hereto of any right hereunder or default by the other party, shall not constitute or be deemed a continuing waiver or a waiver of any other right or default. No failure or delay on
the part of either party in the exercise of any right or privilege hereunder shall operate as waiver thereof, nor shall any single or partial exercise of such right or privilege preclude other or further exercise thereof or of any other right or
privilege. 
 C. Equitable Relief. Nothing herein shall preclude either party from taking actions at any time in the courts specified
in Paragraph XIV.A that are necessary to prevent immediate, irreparable harm to its interests. Otherwise, these procedures are exclusive and shall be fully exhausted prior to the initiation of any litigation. 
 D. Notices. All notices, required documentation, and correspondence in connection herewith shall be in the English language, shall be provided in
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transmission or by registered or certified letter to Tessera and Licensee at the addresses and facsimile numbers set forth below: 
  

			
	 Tessera:
	  	Tessera, Inc.
		  	3099 Orchard Dr.
		  	San Jose, California 95134
		  	Facsimile No.: 408-894-0190
		  	Attn.: Chief Executive Officer
		
	 Licensee:
	  	Micron Technology, Inc.
		  	8000 S. Federal Way
		  	Boise, ID 83707
		  	Facsimile No.: 208-368-4540
		  	Attn.: General Counsel

 Either Party may change its address and/or facsimile number by giving the other party notice of
such new address and/or facsimile number. All notices if given or made by registered or certified letter shall be deemed to have been received on the earlier of the date actually received and the date three days after the same was posted and if
given or made by facsimile transmission shall be deemed to have been received at the time of dispatch, unless such date of receipt is not a business day, in which case the date of deemed receipt shall be the next succeeding business day. 

E. Invalidity. If any provision of this Agreement is declared invalid or unenforceable by a court having competent jurisdiction, it is mutually
agreed that this Agreement shall endure except for the part declared invalid or unenforceable by order of such court. The parties shall consult and use their reasonable efforts to agree upon a valid and enforceable provision which shall be a
reasonable substitute for such invalid or unenforceable provision in light of the intent of this Agreement. 
 F. Assignment. With the
exception of Paragraph VIII.C (Termination for Assignment), neither party may assign this Agreement or any of its rights or obligations hereunder without the prior written consent of the other party; provided, however, that Tessera may assign this
Agreement to a Tessera Affiliate, a parent company, or any company owned or controlled by such parent company. 
 G. Export
Regulations. Both parties shall comply with the laws and regulations of the government of the United States and of any other country as relevant to each party hereto relating to the export of goods and information. 
 H. Paragraph Headings. The headings and captions used herein shall not be used to interpret or construe this Agreement. 
 I. Entire Understanding. This Agreement embodies the entire understanding between the parties relating to the subject matter hereof, whether
written or oral, and there are no prior representations, warranties or agreements between the parties not contained in this Agreement. Any amendment or modification of any provision of this Agreement must be in writing, dated and signed by both
parties hereto. 
  

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 Tessera and Micron Confidential 
  

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

									
	TESSERA, INC.	 		 	MICRON TECHNOLOGY, INC.
					
	By:	 	/s/ Michael Forman	 		 	By:	 	/s/ Wilbur Stover
	Print Name:	 	Michael Forman	 		 	Print Name:	 	Wilbur Stover
	Title:	 	Vice President, Finance	 		 	Title:	 	Vice President of Finance and Chief Financial Officer
	Date:	 	July 21, 2006	 		 	Date:	 	July 21, 2006

  

 Page 12 of 12Warrant Agreement

 Exhibit 4.3 
 WARRANT AGREEMENT 
 THIS AGREEMENT, dated as of this
             day of July 2006, by and between Waccamaw Bankshares, Inc., a North Carolina corporation (the “Company”) and First-Citizens Bank & Trust Company,
Raleigh, North Carolina (the “Transfer Agent”). 
 WHEREAS, the Company in connection with its offering (the
“Offering”) of approximately 656 thousand (656,000) shares of its no par value common stock (the “Common Stock”) is issuing an aggregate of approximately 656 thousand (656,000) warrants (the
“Warrants”) to purchase the Company’s Common Stock, such that one Warrant shall be issued for each share of the Company’s Common Stock sold in the Offering. 
 WHEREAS, the Company desires to appoint the Transfer Agent to act on its behalf in connection with the (i) issuance, transfer and exchange of
the certificates representing the Warrants (the “Warrant Certificates”), (ii) the exercise of the Warrants by the holders thereof (together with any registered successors or assigns, the “Holders”) and (iii) the
adjustment of the Warrants in certain events as contained herein; 
 NOW, THEREFORE, the parties hereto hereby agree as follows:

 1. APPOINTMENT OF TRANSFER AGENT. The Company hereby appoints the Transfer Agent as its agent to issue the Warrant
Certificates, as set forth herein at the usual and customary rates under the current agreement between the Company and the Transfer Agent, subject to resignation or replacement as provided herein. The Transfer Agent agrees to accept such
appointment, subject to the terms and conditions as set forth herein and to issue, transfer and exchange the Warrant Certificates pursuant to the terms as provided for herein to issue the certificates representing the appropriate number of shares of
Common Stock (or other consideration) upon exercise of the Warrants. The Company agrees to issue and honor the Warrants on the terms and conditions as herein set forth and to issue its Common Stock (or other securities) upon notice from the Transfer
Agent of the proper exercise of any Warrant. The Transfer Agent is hereby empowered to enforce any rights of the Holders for the benefit of any Holders, subject to the terms and conditions contained herein. 
 2. ISSUANCE OF WARRANT CERTIFICATES. 
 2.1. Form of Warrant Certificate. All Warrants shall be issued substantially in the form of the Warrant Certificate annexed hereto as Exhibit A. The terms of any such Certificate are incorporated herein by reference.

 2.2. Execution of Warrants. No Warrants shall have been duly and validly issued until a Holder has received a Warrant Certificate
executed by the chairman or president of the Company and the secretary or treasurer of the Company and such Certificate is countersigned by an authorized officer of the Transfer Agent. Any Warrant Certificates may be executed by the officers of the
Company by means of a facsimile signature. The Transfer Agent shall maintain the register of all Holders. 
 2.3. Maximum Number of
Warrants. The Company hereby authorizes the Transfer Agent to issue an aggregate of approximately              thousand
(            ,000) Warrants pursuant to the terms hereof subject to adjustment as hereafter provided in Section 4 hereof. 
 2.4. Initial Holders. The Company shall deliver to the Transfer Agent a list of the names of the persons who shall be the initial Holders of the
Warrants and the number of Warrants to which each such person is entitled. The Transfer Agent is hereby authorized by the Company to promptly issue Warrant Certificates for approximately
             thousand (            ,000) Warrants upon receipt of the written request of the Company, which shall
include the list referred to in the preceding sentence. The Company shall deliver to the Transfer Agent, along with this Warrant Agreement, a sufficient number of duly executed Warrant Certificates. The Warrant Certificates shall be completed and
countersigned by the Transfer Agent and promptly mailed or delivered to the Holders pursuant to the terms hereof. When requested by the Transfer Agent, from time to time hereafter, the Company will execute additional Warrant Certificates in blank
for the Transfer Agent to issue hereunder. 

 3. RIGHTS OF A HOLDER. Subject to adjustment as provided herein, each Warrant shall
evidence the right to purchase one share of the Company’s Common Stock at the purchase price of $             (the “Purchase Price”). Following the Expiration Date, as
defined in Section 4.1 below, the Warrant shall be null and void. 
 4. EXERCISE OR TRANSFER OF WARRANT. 
 4.1. Exercise Period. The Warrants may be exercised at any time commencing after
            , 2006 (the “Initial Exercise Date”) but not later than 5:00 P.M., Eastern time, on
            , 2009 (the “Expiration Date”). If the Expiration Date is not a Business Day, it shall automatically be extended to 5:00 P.M. on the next day which is a
Business Day. Business Day means any day other than a Saturday, Sunday, or holiday on which banks in North Carolina are authorized by law to close. 
 4.2. Means of Exercise. In order to exercise a Warrant, the Holder must present and surrender the Warrant Certificate to the Transfer Agent at its office, with the election to exercise section duly executed and it must be accompanied
by payment in full, in the form of cash, by certified or official bank check payable to the order of the Company or its successor, of the aggregate Purchase Price for the number of shares of Common Stock specified in such Election to Exercise Form.

 4.3. Issuance of Common Stock. Upon the request of the Transfer Agent, the Company shall promptly deliver or cause to be delivered
a certificate or certificates evidencing the shares of Common Stock purchased when any Warrant is validly exercised. Upon receipt of any Warrant Certificate by the Transfer Agent, at its office, in proper form for exercise and accompanied by
payments as herein provided, the Holder shall be deemed to be the holder of record of the shares of Common Stock issuable upon such exercise, notwithstanding that the stock transfer books of the Company shall then be closed or that certificates
representing such shares of Common Stock shall not then be actually delivered to the Holder. 
 4.4 Transfer. Upon surrender of the
Warrant Certificate and similar Warrant Certificates at the principal office of the Transfer Agent, by the Holder hereof in person or by an attorney duly authorized in writing, with the election to transfer section properly completed and duly
executed, such Warrant Certificates may be transferred or exchanged in the manner provided in the Warrant Certificate and without payment of any service charge, for another Warrant Certificate or Warrant Certificates of like tenor, evidencing in the
aggregate the number of Warrants evidenced by the Warrant Certificates so surrendered and registered in the name or names as requested by the then registered owner thereof or by an attorney duly authorized in writing. Warrants transferred pursuant
to such Section shall be accompanied by a proper payment of any applicable transfer taxes. 
 5. ADJUSTMENT OF PURCHASE PRICE AND
NUMBER OF SHARES PURCHASABLE AND OTHER TERMS IN CERTAIN EVENTS. 
 5.1. The Purchase Price and the resulting number of shares of
Common Stock issuable under each Warrant shall be subject to adjustment as follows: 
  

	 	(a)	If the Company after the date of this Warrant Certificate but before its exercise: 

 (1) pays a dividend or any other distribution payable in shares of its Common Stock otherwise than out of earnings or earned surplus; 
 (2) subdivides its outstanding shares of Common Stocks into a greater number of shares; 
 (3) combines its
outstanding shares of Common Stock into a smaller number of shares; 
 (4) issues by reclassification of its shares of Common Stock any shares
of capital stock of the Company (other than a change in par value or from par value to no par value or from no par value to par value); or 
 (5) issues rights, options or warrants entitling holders of shares of Common Stock to subscribe for shares of Common Stock at less than the current market price, if any; 
 the Purchase Price in effect immediately prior to such action shall be adjusted so that the Holder of each Warrant may receive the number of shares of Common Stock of the Company to which it would have been entitled
upon 

  

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such action if such holder had so exercised the Warrant immediately prior thereto. An adjustment made pursuant to this Section 5 shall become effective
immediately after the record date for the determination of owners of Common Stock entitled thereto in the case of a dividend or distribution, and shall become effective immediately after the effective date in the case of a subdivision, combination,
reclassification, or issuance of rights, options or warrants retroactive to the record date, if any, for such event. 
 (b) No payment or
adjustment shall be made by or on behalf of the Company on account of any cash dividends on the Common Stock issued upon any exercise of a Warrant which was declared for payment to the holders of Common Stock of record as of a date prior to the date
on which such Warrant is exercised. 
 (c) Upon each adjustment of the Purchase Price made pursuant to this Section 5, each Warrant
shall thereafter (until another such adjustment) evidence the right to purchase that number of shares of Common Stock (calculated to the nearest hundredth) obtained by dividing the initial Purchase Price by the Purchase Price in effect after such
adjustment. 
 (d) The Company’s failure to give the notice required by this Section 5.1 or any defect therein shall not affect the
validity of such action listed under this Section 5.1. 
 (e) For the purpose of this Section 5.1, the term “shares of Common
Stock” shall mean (x) the class of stock designated as the Common Stock at the date of this Warrant, or (y) any other class of stock resulting from successive changes or reclassifications of such shares consisting solely of changes in
par value, from no par value to par value or from par value to no par value. In the event that at any time, as a result of an adjustment made pursuant to this Section 5, the Holder shall become entitled to purchase any shares of the Company
other than shares of Common Stock, thereafter the number of such other shares so purchasable upon exercise of each Warrant and the Purchase Price of such shares shall be subject to adjustment from time to time in a manner and on terms as nearly
equivalent as practicable to the provisions with respect to the shares of Common Stock contained in this Section 5.1. 
 5.2.
Liquidation, Dissolution or Winding Up. Notwithstanding any other provisions hereof, in the event of the liquidation, dissolution, or winding up of the affairs of the Company (other than in connection with a merger or sale or conveyance of
all or substantially all of its assets outside of the ordinary course of business), the right to exercise each Warrant shall terminate and expire at the close of business on the last full business day before the earliest date fixed for the payment
of any distributable amount on the Common Stock. The Company shall cause a notice to be mailed to each Holder at least 20 days prior to the applicable record date for such payment stating the date on which such liquidation, dissolution or winding up
is expected to become effective, and the date on which it is expected that holders of shares of Common Stock of record shall be entitled to exchange their shares of Common Stock for securities or other property or assets (including cash) deliverable
upon such liquidation, dissolution or winding up, and that each Holder may exercise outstanding Warrants during such 20 day period and, thereby, receive consideration in the liquidation on the same basis as other previously outstanding shares of the
same class as the shares acquired upon exercise. The Company’s failure to give notice required by this Section 5.2 or any defect therein shall not affect the validity of such liquidation, dissolution or winding up. 
 5.3. Merger, Consolidation, etc. 
 (a) In case of any merger of the Company into any other entity or sale or conveyance of all or substantially all of its assets outside of the ordinary course of business (such merger, sale or conveyance, a “Change”) then, as a
condition of such Change, lawful and adequate provisions shall be made whereby the Holders shall thereafter have the right to receive upon payment of the Purchase Price in effect immediately prior to such Change, upon the basis and upon the terms
and conditions specified in this Agreement (including but not limited to all provisions contained in this Section 5), and in lieu of the shares of the Company’s Common Stock purchasable upon the exercise of the Warrants, such shares of
stock, securities, cash or assets which such Holder 

  

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would have been entitled to receive after the happening of such Change had such Warrant been exercised immediately prior to such Change. The provisions of
this Section 5.3 shall similarly apply to successive Changes. The Company shall cause a notice to be mailed to each Holder at least 20 days prior to the applicable record date for the Change covered by this Section 5.3(a) and shall provide
notice of the Change and shall set forth the first and last date on which the Holder may exercise outstanding Warrants. The Company’s failure to give the notice required by this Section 5.3(a) or any defect therein shall not affect the
validity of the Change covered by this Section 5.3(a). 
 (b) Notwithstanding the foregoing, if as a result of such Change, holders of
the Company Common Stock shall receive consideration other than solely in shares of stock or other securities in exchange for their Company Common Stock, the Company may, at its option, fulfill its obligation hereunder by causing the Notice required
by Section 5.3(a) hereof to include notice to Holders of the opportunity to exercise their Warrants before the applicable record date for the Change, and thereby receive consideration in the Change, on the same basis as other previously
outstanding shares of the same class as the shares acquired upon exercise. If the notice specified in the preceding sentence is provided to Holders, Warrants not exercised in accordance with this Section 5.3(b) before consummation of the Change
shall be canceled and become null and void on the effective date of the Change. The notice provided by the Transfer Agent pursuant to this Section 5.3(b) shall include a description of the terms of this Agreement providing for cancellation of
the Warrants in the event that Warrants are not exercised by the prescribed date. The Company’s failure to give any notice required by this Section 5.3(b) or any defect therein shall not affect the validity of any such Change. 

5.4. Duty to Make Fair Adjustments in Certain Cases. If any event occurs as to which in the opinion of the Board of Directors of the Company
the other provisions of this Section 5 are not strictly applicable or if strictly applicable would not fairly protect the purchase rights of the Holders in accordance with the essential intent and principles of this Agreement, then the Board of
Directors shall make an adjustment in the application of such provisions, in accordance with such essential intent and principles, as to protect the purchase rights of the Holders. Notwithstanding the foregoing, the issuance of Common Stock or any
securities convertible into Common Stock by the Company either for cash or in a merger, sale of assets, exchange or acquisition shall not, by itself, constitute a basis for requiring any adjustment in the Warrants unless specifically enumerated
herein. 
 5.5. Good Faith Determination. Any determination as to whether an adjustment or limitation of exercise is required pursuant
to this Section 5 (and the amount of any adjustment), shall be binding upon the Holders and the Company if made in good faith by the Board of Directors of the Company. 
 5.6. Notice of Adjustment. Whenever the number of shares of Common Stock purchasable upon the exercise of the Warrants or the Purchase Price is
adjusted, the Company shall promptly file in the custody of its Secretary or an Assistant Secretary at its principal office and with the Transfer Agent, an officer’s certificate setting forth the number of shares of Common Stock purchasable
upon the exercise of the Warrants, the Purchase Price after such adjustment, a statement, in reasonable detail, of the facts requiring such adjustment and the computation by which such adjustment was made. Each such officer’s certificate shall
be made available at all reasonable times for inspection by the Holders, and the Transfer Agent shall, forthwith after each such adjustment, promptly mail a copy of such certificate to such Holders by first class mail, postage prepaid. 

5.7. No Change of Warrant Necessary. Irrespective of any adjustment in the Purchase Price or in the number or kind of shares issuable upon
exercise of the Warrants, the Warrant Certificates may continue to express the same price and number and kind of shares as are stated in the Warrant Certificates as initially issued. 
 6. SHARES TO BE FULLY PAID; RESERVATION OF SHARES. The Company covenants and agrees for the benefit of the Holders: 
 6.1. That all shares of Common Stock which may be issued upon the exercise of the rights represented by the Warrant Certificates will, upon issue and
payment of the aggregate Purchase Price therefor, be duly authorized, validly issued, fully paid and non-assessable and free and clear of all liens and encumbrances, with no personal liability attaching to the ownership thereof. 
  

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 6.2. That during the period within which the rights represented by the Warrant Certificates may be
exercised, the Company will at all times have authorized and reserved for the purpose of issue upon exercise of the rights evidenced by the Warrant Certificates, a sufficient number of shares of Common Stock to provide for the exercise of the rights
represented by the Warrant Certificates. 
 6.3. That the Company will take all such action as may be necessary to ensure that the shares of
Common Stock issuable upon the exercise of the Warrants may be so issued without violation of any applicable federal or state law or regulation. 
 6.4. That the shares of Common Stock issuable upon exercise of the Warrants shall be registered under the Securities Act of 1933 and shall register or qualify such Common Stock in every state where such registration or qualification shall
be required under the applicable state securities or Blue Sky laws; and 
 6.5 That the Company shall use its best efforts to list the
Warrants for trading on the Nasdaq Capital Market as soon as practicable. 
 7. LOSS OF WARRANT CERTIFICATE. Upon receipt by
the Transfer Agent of evidence satisfactory to it of the loss, theft, destruction or mutilation of a Warrant Certificate, and (i) in the case of such loss, theft or destruction, of reasonably satisfactory indemnification and bonding, or
(ii) if mutilated, upon surrender and cancellation of such Warrant Certificate, the Transfer Agent shall execute and deliver a new Warrant Certificate of like tenor. Any such new Warrant Certificate executed and delivered shall constitute an
additional contractual obligation on the part of the Company, whether or not the Warrant Certificate so lost, stolen, destroyed or mutilated shall be at any time enforceable by anyone. 
 8. NO ISSUANCE OF FRACTIONAL INTERESTS IN COMMON STOCK. The Company shall not be required to issue fractional shares of Common Stock on the
exercise of the Warrants. If any fraction of a share of Common Stock would be issuable upon the exercise of the Warrants (or any specified portion thereof), the Company shall pay an amount in cash equal to the product of (a) such fraction and
(b) the fair market value of the Common Stock, as determined in good faith by the Board of Directors of the Company, on the Business Day prior to the date the Warrant is exercised. 
 9. NO RIGHTS AS STOCKHOLDERS; CERTAIN NOTICES AND REPORTS TO HOLDERS. Except as specifically provided in this Agreement, nothing contained
in this Agreement or in the Warrant Certificates shall be construed as conferring upon the Holders or any transferees the right to vote or to receive dividends or to receive notice as stockholders in respect of any meeting of stockholders for the
election of directors of the Company or any other matter, or any rights whatsoever as stockholders of the Company. If, however, between the date hereof and the Expiration Date (or if earlier the occurrence of any event specified in Section 5.2
or 5.3(b) terminating the Warrants), any of the following events shall occur: 
 (a) the Company shall declare any cash dividend upon its
shares of Common Stock payable at a rate more than 50% in excess of the rate of the last cash dividend theretofore paid; or 
 (b) the Company
shall declare any dividend payable in any securities upon its shares of Common Stock, other than a dividend payable in Common Stock or make any distribution (other than a regular cash dividend out of undistributed net income) to the holders of its
shares of Common Stock; or 
 (c) the Company shall distribute any rights, options or warrants to the holders of shares of Common Stock; or

 (d) a capital reorganization or reclassification of the Company’s capital stock shall be proposed; 
 then in any one or more of said events, the Company shall give to the Holders at least twenty days prior written notice of the date fixed as a record date or the date of
closing the transfer books for the determination of the stockholders entitled to receive such dividend or distribution. Any such notice shall also specify, in the case of any such dividend or distribution, the date on which holders of shares of
Common Stock are entitled thereto. Failure to mail such notice or any defect therein or in the mailing thereof shall not affect the validity of any action taken in connection with such dividend or distribution. 
  

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 The Company shall transmit by mail to all registered Holders, all reports and other documents that the
Company transmits to holders of shares of Common Stock generally, at the same time and in the same manner as such reports and other documents are transmitted to holders of shares of Common Stock. 
 10. AGREEMENT OF HOLDERS. Every Holder of a Warrant, by his acceptance thereof, consents and agrees with the Company, the Transfer Agent
and every other Holder of a Warrant that: 
 (a) Warrants are not transferable except as provided herein; and 
 (b) The Company and the Transfer Agent may deem and treat the person in whose name the Warrant Certificate is registered as the Holder and as the
absolute, true and lawful owner of the Warrants represented thereby for all purposes, and neither the Company nor the Transfer Agent shall be affected by any notice or knowledge to the contrary. 
 11. DUTIES OF TRANSFER AGENT. The Transfer Agent acts hereunder as agent and in a ministerial capacity for the Company, and its duties
shall be determined solely by the provisions hereof. The Transfer Agent shall not, by issuing and delivering Warrant Certificates or by any other act hereunder be deemed to make any representations as to the validity, value or authorization of the
Warrant Certificates or the Warrants represented thereby or of any securities or other property delivered upon exercise of any Warrant or whether any stock issued upon exercise of any Warrant is fully paid and nonassessable. 
 The Transfer Agent shall not at any time be under any duty or responsibility to any Holder of Warrant Certificates to make or cause to be made any
adjustment of the Purchase Price provided in this Agreement, or to determine whether any fact exists which may require any such adjustments, or with respect to the nature or extent of any such adjustment, when made, or with respect to the method
employed in making the same. It shall not (i) be liable for any recital or statement of facts contained herein or for any action taken, suffered or omitted by it in reliance on any Warrant Certificate or other document or instrument believed by
it in good faith to be genuine and to have been signed or presented by the proper party or parties, (ii) be responsible for any failure on the part of the Company to comply with any of its covenants and obligations contained in this Agreement
or in any Warrant Certificate, or (iii) be liable for any act or omission in connection with this Agreement except for its own gross negligence or willful misconduct. 
 The Transfer Agent may at any time consult with counsel satisfactory to it (who may be counsel for the Company) and shall incur no liability or
responsibility for any action taken, suffered or omitted by it in good faith in accordance with the opinion or advice of such counsel. 
 Any
notice, statement, instruction, request, direction, order or demand of the Company shall be sufficiently evidenced by an instrument signed by the President, any Vice President, its Secretary, or Assistant Secretary, (unless other evidence in respect
thereof is herein specifically prescribed). The Transfer Agent shall not be liable for any action taken, suffered or omitted by it in accordance with such notice, statement, instruction, request, direction, order or demand believed by it to be
genuine. 
 The Company agrees to pay the Transfer Agent reasonable compensation for its services hereunder and to reimburse it for its
reasonable expenses hereunder and further agrees to indemnify the Transfer Agent and save it harmless against any and all losses, expenses and liabilities, including judgments, reasonable costs and counsel fees, for anything done or omitted by the
Transfer Agent in the execution of its duties and powers hereunder except losses, expenses and liabilities arising as a result of the Transfer Agent’s gross negligence or willful misconduct. 
 The Transfer Agent may resign its duties and be discharged from all further duties and liabilities hereunder (except liabilities arising as a result of
the Transfer Agent’s own gross negligence or willful misconduct), after giving 30 days’ prior written notice to the Company. At least 15 days prior to the date such resignation is to become effective, the Transfer Agent shall cause a copy
of such notice of resignation to be mailed to the Holder 

  

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of each Warrant Certificate at the Company’s expense. Upon such resignation, or any inability of the Transfer Agent to act as such hereunder, the
Company shall appoint a new Transfer Agent in writing. The Company shall have complete discretion in the naming of a new Transfer Agent, who may be an affiliate, subsidiary or department of the Company, or any person used by the Company as transfer
agent for the Common Stock. If the Company shall fail to make such appointment within a period of 15 days after it has been notified in writing of such resignation by the resigning Transfer Agent, then the Holder of any Warrant Certificate may apply
to any court of competent jurisdiction for the appointment of a new Transfer Agent. 
 The Company may, upon notice to the Holders, remove
and replace the Transfer Agent for the Company Common Stock for any reason. 
 After acceptance in writing of an appointment by a new
transfer agent is received by the Company, such new transfer agent shall be vested with the same powers, rights, duties and responsibilities as if it had been originally named herein as the Transfer Agent, without any further assurance, conveyance,
act or deed. Any former Transfer Agent hereby agrees to cooperate with and deliver all records and Warrant Certificates to the new transfer agent at the direction of the new transfer agent and the Company. 
 Not later than the effective date of an appointment of a new transfer agent by the Company, the Company shall file notice with the resigning or
terminated Transfer Agent and shall forthwith cause a copy of such notice to be mailed to each Holder. 
 Any corporation into which the
Transfer Agent or any new transfer agent may be converted or merged or any corporation resulting from any consolidation to which the Transfer Agent or any new transfer agent shall be a party or any corporation succeeding to the trust business of the
Transfer Agent shall be a successor transfer agent under this Agreement without any further act. Any such successor transfer agent shall promptly cause notice of its succession as transfer agent to be mailed to the Company and to each Holder.

 Nothing herein shall preclude the Transfer Agent from acting in any other capacity for the Company. 
 12. MODIFICATION OF AGREEMENT. The Transfer Agent and the Company may by supplemental agreement make any changes or corrections in this
Agreement: (i) that they shall deem appropriate to cure any ambiguity or to correct any defective or inconsistent provision or manifest mistake or error herein contained; or (ii) that they may deem necessary or desirable and which shall
not adversely affect the purchase or other material rights of the Holders of Warrant Certificates. This Agreement shall not otherwise be modified, supplemented or amended in any respect except with the consent in writing of the Holders of Warrant
Certificates representing not less than 50% of the Warrants then outstanding, but no such amendment, modification or supplement which changes the number or nature of the securities purchasable upon the exercise of any Warrant, the Purchase Price or
accelerates the Expiration Date, shall be made without the consent in writing of each and every Holder (but no consent shall be required for such changes as are specifically prescribed by this Agreement as originally executed). 
 13. MISCELLANEOUS. 
 13.1.
Entire Agreement. This Agreement and the form of Warrant Certificate annexed hereto as Exhibit A contains the entire Agreement between the parties hereto with respect to the transactions contemplated by this Agreement and supersedes
all prior negotiations, arrangements or understandings with respect thereto. 
 13.2. Counterparts. This Agreement may be executed in
one or more counterparts, all of which shall be considered one and the same agreement and each of which shall be deemed an original. 
 13.3.
Governing Law. This Agreement shall be governed by the laws of the State of North Carolina, without giving effect to the principles of conflicts of laws thereof. 
  

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 13.4. Descriptive Headings. The descriptive headings of this Agreement are for convenience only
and shall not control or affect the meaning or construction of any provision of this Agreement. 
 13.5. Notices. Any notice or other
communications required hereunder to be given to a Holder shall be in writing and shall be sufficiently given, if mailed (first class, postage prepaid), or personally delivered, addressed in the name and at the address of such Holder appearing from
time to time on the records of the Transfer Agent. Notices or other communications to the Company shall be deemed to have been sufficiently given if delivered by hand or mailed to the Company at its then principal office, Attention: President, or at
such other address as the Company shall have designated by written notice to the Transfer Agent. Notices or other communications to the Transfer Agent shall be deemed to have been sufficiently given if delivered by hand or mailed (first class,
postage prepaid) to its then principal office. Notice by mail shall be deemed given when deposited in the mail, postage prepaid. 
 13.6
Successors and Assigns. The terms and conditions of this Agreement shall inure to the benefit of and be binding upon the respective successors and assigns of the Company and the Transfer Agent. 
 IN WITNESS WHEREOF, the Company and the Transfer Agent have executed this Agreement by their duly authorized officers as of the date first set
forth above. 
 [Signature Page follows] 
  

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	 Waccamaw Bankshares, Inc.

		
	By:	 	  
		 	 [Name]

		 	 [Title]

 [Corporate Seal] 
  

			
	 First-Citizens Bank & Trust Company

		
	By:	 	  
		 	 [Name]

		 	 [Title]

 [Corporate Seal] 
  

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 Exhibit A 
  

			
	 CUSIP # ___________________
	 	___________________ WARRANTS
	 No. W _____________________
	 	

 Waccamaw Bankshares, Inc. 
 WARRANTS TO PURCHASE COMMON STOCK 
 VOID FOR ANY PURPOSE AFTER 5:00 PM, EASTERN
TIME, ON             , 2009 
 This Certificate certifies that, for
value received,
                                        
                                        
                                   
  
  

 or registered assigns, is the registered holder of the number of warrants (the “Warrants”) set forth above. Each Warrant entitles the registered holder thereof to receive from Waccamaw Bankshares, Inc., a
North Carolina corporation with its principal office at 110 North J. K. Powell Boulevard, Whiteville, North Carolina 28472 (the “Corporation”), on and after the issuance date one (1) fully paid and nonassessable share of the common
stock, no par value, of the Corporation (the “Common Stock”), at the purchase price of $             (the “Purchase Price”) upon surrender of this Warrant
Certificate, with the form of election to purchase set forth on the reverse hereof properly completed and duly executed and payment of the Purchase Price at the principal office of the Transfer Agent, or its successors as Transfer Agent, as provided
in the Warrant Agreement (the “Warrant Agreement”), dated             , 2006 by and between the Corporation and First-Citizens Bank & Trust Company (the
“Transfer Agent”), a copy of which may be obtained from the Corporation, by a written request from the registered holder hereof or which may be inspected by any registered holder or his or her agent at the principal office of the
Corporation. Payment of the Purchase Price may be made at the option of the registered holder in cash, by certified or official bank check payable to the order of the Corporation. 
 The Purchase Price and the number of shares of Common Stock purchasable upon exercise of the Warrants set forth above are based on the Common Stock of
the Corporation outstanding as of the issuance date of this Warrant Certificate and are subject to adjustment provided in Section 5 of the Warrant Agreement. 
 Upon surrender of this Warrant Certificate and payment of the Purchase Price, the Corporation shall issue and cause to be delivered to the registered holder of this Warrant Certificate a certificate for the number of
shares of Common Stock issuable for the Warrants then being exercised. 
 No Warrant may be exercised after 5:00 P.M., Eastern Time, on
            , 2009 (the “Expiration Date”). If such date is not a Business Day as defined in the Warrant Agreement, the Expiration date shall mean 5:00 P.M., Eastern Time,
the next following Business Day. The Expiration Date may be accelerated as provided in the Warrant Agreement under certain specifically defined circumstances upon notice to the registered holder hereof. To the extent not exercised and delivered to
the Transfer Agent by the Expiration Date, the Warrants shall be null and void. 
 The further provisions of this Warrant Certificate are set
forth on the reverse hereof, and the further provisions of the Warrant Agreement shall for all purposes have the same effect as if set forth fully at this place. 
 This Warrant Certificate is not valid unless countersigned by the Transfer Agent. 
 IN WITNESS WHEREOF,
Waccamaw Bankshares, Inc. has caused this Warrant Certificate to be duly executed under its corporate seal. 
  

									
	 Countersigned:
	 		 	
	 First-Citizens Bank & Trust Company
	 		 	 Waccamaw Bankshares, Inc.

	                                        
     as Transfer Agent
	 		 	
					
	By:	 	  	 		 	 By:
	 	  
	 Authorized Signature
	 		 		 	 President

					
	Dated:	 	  	 		 	 By:
	 	  
		 		 		 		 	 Secretary

 (SEAL) 
  

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 Exhibit A 
 Waccamaw Bankshares, Inc. 
 This Warrant Certificate and each Warrant represented hereby are issued
pursuant to and are subject in all respects to the terms and conditions set forth in the Warrant Agreement, which is incorporated herein by reference. Please refer to the Warrant Agreement for a description of the rights, limitations of rights,
obligations, duties and immunities hereunder of the Transfer Agent, the Corporation and the registered holders of the Warrants. In the event the registered holders do not comply with the terms of the Warrant Agreement, the Warrants shall immediately
become null and void. 
 The Warrant Agreement provides that upon the occurrence of certain events, the Purchase Price set forth on the face
hereof may, under certain conditions, be adjusted. If the Purchase Price is adjusted, the Warrant Agreement provides that the Purchase Price in effect immediately prior to such event shall be adjusted so that the registered holder of each Warrant
may receive the number of shares of Common Stock of the Corporation to which it would have been entitled upon such action if such registered holder had so exercised the Warrant immediately prior to the event. No fractional shares of Common Stock
will be issued upon exercise of the Warrant. If any fraction of a share of Common Stock would be issuable upon the exercise of the Warrants (or any specified portion thereof), the Corporation shall pay an amount in cash equal to the product of
(a) such fraction and (b) the fair market value of the Common Stock, as determined in good faith by the Board of Directors of the Corporation, on the Business Day prior to the date the Warrant is exercised. 
 Upon surrender of this Warrant Certificate and similar Warrant Certificates at the principal office of the Transfer Agent, by the registered holder
hereof in person or by an attorney duly authorized in writing, such Warrant Certificates may be transferred or exchanged in the manner and subject to the limitations provided in the Warrant Agreement, for another Warrant Certificate or Warrant
Certificates of like tenor, evidencing in the aggregate the number of Warrants evidenced by the Warrant Certificates so surrendered and registered in the name or names as requested by the then registered owner thereof or by an attorney duly
authorized in writing. In the case of the exercise of less than all the Warrants represented hereby, the registered holder shall be entitled to receive upon surrender of this Warrant Certificate another Warrant Certificate or Warrant Certificates
for the balance of the Warrants evidenced by this Warrant Certificate. 
 Prior to the exercise of any Warrant represented hereby, the
registered holder shall not be entitled to any rights of a stockholder of the Corporation, including, without limitation, the right to vote or to receive dividends or other distributions, and shall not be entitled to receive any notice of any
proceedings of the Corporation, except as provided in the Warrant Agreement. 
 The Corporation and the Transfer Agent shall treat the
registered holder as the absolute owner hereof and of each Warrant represented hereby for all purposes and shall not be affected by any notice to the contrary. 
 This Warrant Certificate shall be governed by and construed in accordance with the laws of the State of North Carolina 
  

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