Document:

Exhibit 10.159

 

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

 

MTV LEASE AGREEMENT

 

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

 

RECITALS

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

ARTICLE 1

GRANT

 

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

 

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

 

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

 

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

 

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

 

ARTICLE 2

LEASE TERM

 

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

 

ARTICLE 3

RENT

 

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

 

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

 

ARTICLE 4

TAXES

 

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

 

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

 

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

 

ARTICLE 5

BUILDING SERVICES

 

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

 

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

 

ARTICLE 6

USE; COMPLIANCE WITH LAWS

 

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

 

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

 

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

 

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

 

ARTICLE 7

TENANT’S INSURANCE AND INDEMNITY

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

ARTICLE 8

LANDLORD’S INSURANCE REQUIREMENTS

 

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

 

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

 

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

 

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

 

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

 

ARTICLE 9

WAIVER OF SUBROGATION

 

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

 

ARTICLE 10

ALTERATIONS

 

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

 

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

 

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

 

ARTICLE 11

CASUALTY

 

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

 

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

 

ARTICLE 12

CONDEMNATION

 

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

 

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

 

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

 

ARTICLE 13

ASSIGNMENT AND SUBLETTING

 

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

 

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

 

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ARTICLE 14

DEFAULT

 

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

 

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

 

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

 

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

 

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ARTICLE 15

NOTICES

 

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

 

ARTICLE 16

REAL ESTATE BROKERS

 

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

 

ARTICLE 17

NO WAIVER

 

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

 

ARTICLE 18

ESTOPPEL CERTIFICATES

 

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

 

11

 

ARTICLE 19

SUBORDINATION

 

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

 

ARTICLE 20

SURRENDER; [***]; ACQUISITION

 

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

 

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

 

ARTICLE 21

APPLICABLE LAW AND CONSTRUCTION

 

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

 

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

 

12

 

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

 

ARTICLE 22

QUIET ENJOYMENT

 

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

 

ARTICLE 23

SUCCESSORS AND ASSIGNS

 

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

 

ARTICLE 24

MISCELLANEOUS

 

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

 

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

 

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

 

24.4                     Jurisdiction;
Venue.  Any suit, action or
proceeding seeking to enforce any provision of, or based on any matter arising
out of or in connection with, this Lease shall be brought in a state or federal
court located in Delaware and each of the parties to this Lease hereby consents
and submits to the exclusive jurisdiction of such courts (and of the
appropriate appellate courts therefrom) in any such suit, action or proceeding
and irrevocably waives, to the fullest extent permitted by applicable Laws, any
objection which it may now or hereafter have to the laying of the venue of any
such suit, action or proceeding in any such court or that any such suit, action
or proceeding which is brought in any such court has been brought in an
inconvenient forum.  Process in any such
suit, action or proceeding may be served on any party anywhere in the world,
whether within or without the jurisdiction of any such court.

 

13

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

14

 

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

 

24.13                   Indemnification
Procedures.

 

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

 

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

 

15

 

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

 

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

 

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

 

24.14                   Force
Majeure.  The parties shall be
excused from any failure to perform any obligation hereunder to the extent such
failure is caused by a Force Majeure Event. 
A Force Majeure Event shall operate to excuse a failure to perform an
obligation hereunder only for the period of time during which the Force Majeure
Event renders performance impossible or infeasible and only if the party
asserting Force Majeure as an excuse for its failure to perform has provided
written notice to the other party specifying the obligation to be excused and
describing the events or conditions constituting the Force Majeure Event.  As used herein, “Force Majeure Event” means
the occurrence of an event or circumstance beyond the reasonable control of the
party failing to perform, including, without limitation, (a) explosions, fires,
flood, earthquakes, catastrophic weather conditions, or other elements of
nature or acts of God; (b) acts of war (declared or undeclared), acts of
terrorism, insurrection, riots, civil disorders, rebellion or sabotage; (c)
acts of federal, state, local or foreign governmental authorities or courts;
(d) labor disputes, lockouts, strikes or other industrial action, whether
direct or indirect and whether lawful or unlawful; (e) failures or fluctuations
in electrical power or telecommunications service or equipment; and (f) delays
caused by the other party’s nonperformance hereunder.

 

Signature Page Follows

 

16

 

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

 

	
   

  	
  MICRON TECHNOLOGY, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ STEVEN R. APPLETON

  	
   

  
	
   

  	
  Name: Steven R. Appleton

  
	
   

  	
  Title: Chief Executive Officer and
  President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  IM FLASH TECHNOLOGIES, LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ DAVID A. BAGLEE

  	
   

  
	
   

  	
  Name: David A. Baglee

  
	
   

  	
  Title: Authorized Officer

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ RODNEY MORGAN

  	
   

  
	
   

  	
  Name: Rodney Morgan

  
	
   

  	
  Title: Authorized Officer

  

 

 

THIS IS THE SIGNATURE PAGE FOR THE MTV LEASE
AGREEMENT

ENTERED INTO BY AND BETWEEN MICRON
TECHNOLOGY, INC. AND

IM FLASH TECHNOLOGIES, LLC

 

17

 

Exhibit A

 

Legal Description of Land

 

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

18

 

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

 

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

 

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

 

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

 

19

 

Exhibit B

 

Depiction of the Premises

 

[Picture Showing Premises]

 

20

 

Exhibit C

 

Scope of Work

 

	
  SCOPE

  	
   

  	
  Estimated

  Start

  	
   

  	
  Estimated

  Finish

  	
   

  
	
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21

 

Exhibit D

 

Memorandum of Lease

 

When recorded, return to:

Jones Waldo Holbrook & McDonough, P.C.

170 S. Main Street, Suite 1500

Salt Lake City, Utah  84101-1622

Attn:  Glen D. Watkins

 

	
   

  
	
  Space above for recorder’s use

  

 

DEED OF LEASE

 

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

 

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

 

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

 

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

 

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

 

22

 

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

 

 

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

 

	
   

  	
  Micron Technology, Inc.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  IM Flash Technologies, LLC

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
						

 

	
  STATE OF

  	
  )

  
	
   

  	
  ) SS.

  
	
  COUNTY OF

  	
  )

  

 

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

 

 

	
   

  
	
  Notary Public

  

 

	
  STATE OF

  	
  )

  
	
   

  	
  ) SS.

  
	
  COUNTY OF

  	
  )

  

 

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

 

	
   

  
	
  Notary Public

  

 

23Exhibit 10.160

 

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

 

INTEL/MICRON
CONFIDENTIAL

 

PRODUCT DESIGNS ASSIGNMENT
AGREEMENT

 

This PRODUCT DESIGNS ASSIGNMENT AGREEMENT
(“Agreement”) is made and entered into as
of this 6th day of January, 2006 (“Effective Date”),
by and between Intel Corporation, a Delaware corporation (“Intel”),
and Micron Technology, Inc., a Delaware corporation (“Micron”).  (Micron and
Intel are referred to in this Agreement individually as a “Party”
and collectively, as the “Parties.”)

 

RECITALS

 

A.                                   Micron
has produced certain NAND Flash Memory Designs (as defined hereinafter).

 

B.                                     Micron
and Intel have agreed that Micron will transfer and assign to Intel all of
Micron’s ownership in and to certain NAND Flash Memory Designs (as defined
hereinafter), upon the terms and subject to the conditions of this Agreement.

 

AGREEMENT

 

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

 

ARTICLE 1

 

DEFINITIONS; CERTAIN INTERPRETIVE MATTERS

 

1.1                                 Definitions.

 

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

 

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

 

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

 

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

 

“[***]” shall mean the [***],
if any, from the list set forth in Schedule 5 within the time
period specified therein.

 

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

 

 

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

 

“Controller Supporting Materials” shall
have the meaning set forth in Section 3.1(b).

 

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

 

“Flash Memory Integrated Circuit” means
a non-volatile memory integrated circuit that contains memory cells that are
electrically programmable and electrically erasable whereby the memory cells
consist of one or more transistors that have a floating gate, charge-trapping
regions or any other functionally equivalent structure utilizing one or more
different charge levels (including binary or multi-level cell structures) with
or without any on-chip control, I/O and other support circuitry.

 

“Force Majeure Event” means the
occurrence of an event or circumstance beyond the reasonable control of a Party
and includes, without limitation, (a) explosions, fires, flood,
earthquakes, catastrophic weather conditions, or other elements of nature or
acts of God; (b) acts of war (declared or undeclared), acts of terrorism,
insurrection, riots, civil disorders, rebellion or sabotage; (c) acts of
federal, state, local or foreign governmental authorities or courts; (d) labor
disputes, lockouts, strikes or other industrial action, whether direct or
indirect and whether lawful or unlawful; (e) failures or fluctuations in
electrical power or telecommunications service or equipment; and (f) delays
caused by the other Party or third-party nonperformance (except for delays
caused by a Party’s subcontractors or agents).

 

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

 

 “In-Process
Designs” means those Pre-existing Product Designs listed on Schedule 1
indicated as “In-Process.”

 

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

 

“[***]” means
that [***].

 

“IP Rights” means copyrights, trade
secrets, Mask Work Rights and registrations of any of the foregoing anywhere in
the world.

 

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

 

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

 

2

 

“LLC Operating Agreement” means the
Limited Liability Company Operating Agreement, dated as of the Effective Date,
by and between the Parties.

 

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

 

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

 

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

 

“Missing Materials” shall have the
meaning set forth in Section 2.4.

 

“NAND Controller” means a discrete
integrated circuit device that controls the data input and output to/from the
memory array of the NAND Flash Memory Die.

 

“NAND Flash Memory Design” means, with
respect to a NAND Flash Memory Die, the corresponding design components,
materials and information listed on Schedule 2, and all IP Rights
in and to those design components, materials and information listed on Schedule 2.  Notwithstanding anything to the contrary in
the foregoing, NAND Flash Memory Design shall not include any Patent Rights.

 

“NAND Flash Memory Die”
means a discrete integrated circuit die, wherein such die includes at least one
NAND Flash Memory Integrated Circuit and such die is designed, developed,
marketed and used primarily as a non-volatile memory die.

 

“NAND Flash Memory Die
Package” means a discrete integrated circuit package for a NAND
Flash Memory Die, including TSOP, COB, BOC, BGA and FBGA or other type package,
wherein such package contains only one or more NAND Flash Memory Die but no
other die.

 

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

 

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

 

“NAND Flash Memory Wafer” means a prime
wafer that has been processed to the point of containing multiple NAND Flash
Memory Die and that has undergone Probe Testing, but before singulation of said
die into individual semiconductor die.

 

3

 

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

 

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

 

“Permitted Affiliate” means, with
respect to a Party, any Affiliate of such Party except to the extent otherwise
agreed by Intel and Micron in any other Joint Venture Document (such exception
being applicable only while any applicable term(s) of the Joint Venture
Documents remain in effect).

 

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

 

“Pre-existing Product Designs” means the
NAND Flash Memory Designs, as and to the extent that each element thereof
exists on the Effective Date, for each of the NAND Flash Memory Products listed
on Schedule 1.

 

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

 

“Publicly Available Software” means (a) any
Software that contains, or is derived in any manner (in whole or in part) from,
any Software that is distributed as free Software, open source Software (e.g. Linux) or similar licensing or distribution models; and
(b) any Software that requires as a condition of use, modification and/or
distribution of such Software that such Software or other Software incorporated
into, derived from or distributed with such Software (i) be disclosed or
distributed in source code form, (ii) be licensed for the purpose of
making derivative works, or (iii) be redistributable at no charge.  Publicly Available Software includes Software
licensed or distributed under any of the following:  (1) GNU’s General Public License (GPL)
or Lesser/Library GPL (LGPL); (2) the Artistic License (e.g., PERL); (3) the Mozilla Public License; (4) the
Netscape Public License; (5) the Sun Community Source License (SCSL); (6) the
Sun Industry Source License (SISL); and (7) the Apache Software license.

 

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

 

“Specifications” means those
specifications used to describe, characterize, and define the quality,
functionality and/or performance of any NAND Flash Memory Die, including any
interim performance requirements at Probe Testing or other testing.

 

4

 

“Supporting Materials” means, with
respect to each NAND Flash Memory Design, those things set forth on Schedule 3
solely as and to the extent (a) such things exist on the Effective Date, (b) they
are either owned by Micron or are licensed to Micron with the right to
sublicense without any further payment to any Third Party, and (c) Micron
is not prohibited by Applicable Law or contractual restriction from disclosing
or licensing as contemplated under this Agreement.

 

“Tangible Design Package” shall have the
meaning set forth in Section 2.3 below.

 

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

 

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

 

1.2                                 Certain
Interpretive Matters.

 

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

 

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

 

ARTICLE 2

 

PRE-EXISTING DESIGNS

 

2.1                                 Assignment.  Subject to the terms and conditions of this
Agreement, Micron, on behalf of itself and its Affiliates, hereby  grants, conveys and assigns (and agrees to
cause its Affiliates to grant, convey and assign) to Intel, by execution of
this Agreement (or, where appropriate or required, by execution of separate
instruments of assignment), all right, title and interest that Micron and
Affiliates of Micron have in and to the 
Pre-existing Product Designs and [***], to be
held and enjoyed by Intel and Intel’s successors and assigns.

 

2.2                                 Further
Assurances.  For a period of [***] from the Effective Date, Micron will, without
receiving any further consideration, at the reasonable request of Intel, do
(and cause Affiliates of Micron to do) all lawful and just acts that are
necessary to record and perfect the transfer of ownership to Intel of any IP
Rights in and to the Pre-existing Product Designs and [***],
including execution and acknowledgement of (and causing its Affiliates to
execute and acknowledge) assignments and other instruments in a form reasonably

 

5

 

required by Intel for each relevant
jurisdiction.  All costs and expenses
associated with recording or perfecting such transfer of ownership shall be borne
solely by Intel.

 

2.3                                 Delivery.  Promptly following the Effective Date, except
for the In-Process Designs, Micron shall deliver to Intel the tangible
information and materials embodying the Pre-existing Product Designs and
Supporting Materials in formats and on storage media mutually agreed to by the
Parties (hereinafter, the “Tangible Design Package”),
in accordance with the delivery protocol set forth on Schedule 6.  Within [***] of the
Effective Date, Micron shall deliver to Intel the datasheets and all errata
thereto (as identified in Schedule 2) associated with the Pre-existing
Product Designs other than the In-Process Designs.

 

2.4                                 Missing
Materials.  If within [***] of the Effective Date, Intel identifies any
information, documents or any other materials that is/are missing from the
Tangible Design Package (“Missing Materials”)
subsequent to delivery of the Tangible Design Package by Micron, Intel may
request Micron in writing to deliver the Missing Materials to Intel within a
period of time identified by Intel, and Micron shall deliver such Missing
Materials within such period of time and in accordance with the delivery
protocol set forth on Schedule 6, provided
that:

 

(a)                                  the
period of time identified by Intel for delivery of the Missing Materials is
reasonable considering (i) the nature of those specific Missing Materials,
and (ii) the reason why those Missing Materials were not previously
delivered, and

 

(b)                                 Intel
describes the Missing Materials with a degree of specificity that Micron is
reasonably able to ascertain.

 

If Intel identifies any Missing Materials
after the foregoing [***] time
period but before [***] after the
delivery of the Pre-existing Product Designs other than the In-Process Designs,
Intel may request Micron in writing to deliver the Missing Materials to the
Intel within a period of time identified by Intel consistent with foregoing
clauses (a) and (b), and Micron shall use reasonable efforts to deliver
such Missing Materials to the extent in existence at the time of such request in
the form that should have been delivered previously.

 

2.5                                 Training.  During the [***] period
commencing on the Effective Date, Micron will provide a reasonable level of
training to design personnel of Intel regarding the Pre-existing Product
Designs, other than the In-Process Designs, and each such design’s
corresponding Supporting Materials.

 

ARTICLE 3

 

LICENSES AND RESERVATION OF RIGHTS

 

3.1                                 License
to Supporting Materials.

 

(a)                                  Micron
hereby grants to Intel [***],
perpetual, [***], fully paid up, [***], license under all IP Rights owned or licensable by
Micron in the Supporting Materials [***], subject
to the terms and conditions of this Agreement and, for so long as any
applicable term(s) of the Joint Venture

 

6

 

Documents remain in effect, the applicable
terms of the Joint Venture Documents. 
The foregoing license further includes the [***].  The license granted in the first sentence of
this Section 3.1(a) includes the [***].

 

(b)                                 With
respect to any of the Supporting Materials identified on Schedule 3
indicated as specifically related to a “NAND Controller Board” (“Controller Supporting Materials”), the license under Section 3.1(a) is
[***], but Intel shall not extract or
separate the Controller Supporting Materials from such board or attempt to
reverse engineer or copy such Controller Supporting Materials.

 

(c)                                  With
respect to any of the Supporting Materials identified on Schedule 3 that
constitute an “IBIS model”, the license under Section 3.1(a) includes
the [***].

 

3.2                                 No
Other Rights.  No other rights are
granted hereunder by either Party, by implication, estoppel, statute or
otherwise, except as expressly provided herein. 
Without limiting the generality of the foregoing, (a) Intel agrees
and acknowledges that no rights are granted under this Agreement by Micron to
any Patent Rights, copyright, Mask Work Rights, trade secret, trademark or
other intellectual property right except as expressly granted hereunder with
respect to the Pre-existing Product Designs or the Supporting Materials, and (b) Micron
agrees and acknowledges that no rights are granted under this Agreement by
Intel to any Patent Rights, copyright, Mask Work Rights, trade secret,
trademark or other intellectual property right with respect to the Pre-existing
Product Designs.  [***].

 

3.3                                 Limitation
on Obligation to Disclose or License. 
Anything to the contrary notwithstanding, Micron shall not be obligated
to disclose to Intel (or any other Person) or license to Intel any portion of
the Supporting Materials with respect to which Micron is prevented by
Applicable Law or contractual restriction from so disclosing or licensing or
which would require payment by Micron to any Third Party.  Moreover, use of the NAND Flash Memory
Designs, Tangible Design Package and Supporting Materials may require use of
Software owned by a Third Party for which no rights to use such Software are
conferred by Micron to Intel hereunder. 
Any such Software or hardware required to use the Supporting

 

7

 

Materials or Tangible Design Package is
solely the responsibility of Intel.  If
Micron determines that it is unable to deliver any of the Supporting Materials
or Tangible Design Package due to the limitations in this Section 3.3,
then Micron will promptly notify Intel of same.

 

ARTICLE 4

 

PRICE AND PAYMENT

 

4.1                                 Price
for Assignment of Product Designs. 
In full consideration for (a) the assignment of the Pre-existing
Product Designs and the delivery of the Tangible Design Package and (b) the
[***], Intel shall pay to Micron on the
Effective Date the respective amounts therefor specified on Schedule 4.  For clarification, in no event shall Intel or
any Affiliate of Intel owe to Micron, Affiliates of Micron, or any other Person
any money in connection with this Agreement beyond the amount specified on Schedule 4.

 

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

 

4.3                                 Taxes.

 

(a)                                  Transfer
of Intangible Rights.  The Parties
agree that any rights transferred pursuant to this Agreement constitute
intangible personal property rights comprised of a copyright interest and/or a
patent interest (as such terms are defined in California Sale and Use Tax
Regulation 1507).  Consequently, this
Agreement is considered to be a “Technology Transfer Agreement” as defined in
California Revenue and Taxation Code section 6012(c)(10) and
California Sale and Use Tax Regulations 1507. 
Because this Agreement represents a transfer of intangible property
rights, and because this Agreement is considered to be a Technology Transfer
Agreement, no sales or use taxes should be imposed by the state of Utah, Idaho
or Virginia, or in California, respectively, on the transfers pursuant to this
Agreement, other than to the value of any tangible personal property included
in such transfer as provided in Section 4.3(b) below, and
neither Party has an obligation under this Agreement to collect or remit sales
or use tax on the transfer of such intangible personal property rights.

 

(b)                                 Tangible
Personal Property Included in Transfers. 
To the extent that the rights transferred pursuant to this Agreement are
transferred through the use of tangible property such as tape or compact disc,
the Parties agree that the amount of any applicable sales or use tax shall be
determined based upon a reasonable determination of fair market value for such
tangible property, and that any and all sales or use tax shall be stated
separately on Micron’s invoice, collected from Intel, and shall be remitted by
Micron to the appropriate tax authority, unless Intel provides valid proof of
tax exemption prior to the effective date or otherwise as permitted by law
prior to the time Micron is required to pay such taxes to the appropriate tax
authority.

 

ARTICLE 5

 

WARRANTIES; DISCLAIMERS

 

5.1                                 Warranties.  Micron represents and warrants to Intel that,
to the best of Micron’s knowledge, as of the Effective Date:

 

8

 

(a)                                  Micron
has full title to, and ownership of, the [***] and the [***] free
and clear of all liens and has the right to transfer such ownership to Intel;

 

(b)                                 [***];

 

(c)                                  Micron
has the right to transfer the Tangible Design Package to Intel;

 

(d)                                 Micron
has the right to grant the licenses to the Supported Materials granted
hereunder;

 

(e)                                  Micron
has not granted any rights in or to the Pre-existing Product Designs or
Supporting Materials that conflict with the rights granted to Intel under this
Agreement;

 

(f)                                    there
are no unresolved claims, demands or pending litigation relating to the
Pre-existing Product Designs or Supporting Materials; and

 

(g)                                 the
Pre-existing Product Designs and Supporting Materials do not contain any
Publicly Available Software.

 

The foregoing representations and warranties shall terminate as of the
tenth (10th) anniversary of the Effective Date, except for Section 5.1(f),
which shall terminate as of the second (2nd) anniversary of the
Effective Date.  Any claim by Intel that
any representation or warranty was untrue must be made before expiration of the
applicable foregoing time period, otherwise Micron shall have no liability
whatsoever with respect to any such representations and warranties.

 

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

 

(a)                                  a
warranty or representation by either of the Parties to this Agreement as to the
validity, enforceability or scope of any class or type of intellectual property
assigned or licensed hereunder;

 

(b)                                 a
warranty or representation that any manufacture, sale, lease, use or other
disposition of the Pre-existing Product Designs, Tangible Design Package,
Supporting Materials  or any products
based on any of the foregoing will be free from infringement, misappropriation
or other violation of any Patent Rights or other intellectual property rights
other than the intellectual property licensed hereunder;

 

(c)                                  an
agreement to bring or prosecute proceedings against Third Parties for
infringement or conferring any right to bring or prosecute proceedings against
Third Parties for infringement of any of the Supporting Materials;

 

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

 

9

 

(e)                                  requiring
either Party to defend any proceeding brought by a Third Party challenging or
concerning the validity of the IP Rights in the Pre-existing Product Designs or
Supporting Materials, [***].

 

5.3                                 Disclaimer.  EXCEPT AS PROVIDED IN SECTION 5.1,
MICRON ASSIGNS THE PRE-EXISTING PRODUCT DESIGNS, TRANSFERS THE TANGIBLE DESIGN
PACKAGE AND LICENSES THE SUPPORTING MATERIALS ON AN “AS IS,” “WHERE IS” (BUT
SUBJECT TO MICRON’S DELIVERY OBLIGATIONS UNDER ARTICLE 2) BASIS,
WITH ALL FAULTS AND DEFECTS, AND WITHOUT ANY WARRANTY OF ANY KIND
WHATSOEVER.  WITHOUT LIMITING THE
FOREGOING, EXCEPT AS PROVIDED IN SECTION 5.1, MICRON DISCLAIMS ANY
WARRANTY, EXPRESS OR IMPLIED, INCLUDING ANY WARRANTY OF MERCHANTABILITY,
FITNESS FOR A PARTICULAR PURPOSE OR NON-INFRINGEMENT WITH RESPECT TO THE
FOREGOING.  EXCEPT AS PROVIDED IN SECTION 5.1,
MICRON MAKES NO WARRANTIES WITH RESPECT TO INTEL’S ABILITY TO:  (A) USE ANY OF THE PRE-EXISTING PRODUCT
DESIGNS, TANGIBLE DESIGN PACKAGE OR SUPPORTING MATERIALS, OR (B) MANUFACTURE
OR HAVE MANUFACTURED ANY PRODUCTS BASED THEREON.  [***]. 
SUCH DISCLAIMERS ARE NOT INTENDED TO AFFECT ANY DIRECT CLAIMS OR
REMEDIES INTEL MAY ASSERT AGAINST ANY THIRD PARTY OR PREVENT THE
PASS-THROUGH OR ASSIGNMENT TO INTEL OF ANY RIGHTS MICRON MAY HAVE AGAINST
ANY THIRD PARTY.

 

ARTICLE 6

 

LIMITATION OF LIABILITY

 

6.1                                 LIMITATION
OF LIABILITY.  EXCEPT FOR A BREACH OF
ARTICLE 7, IN NO EVENT SHALL EITHER PARTY BE LIABLE TO THE OTHER
PARTY FOR ANY SPECIAL, CONSEQUENTIAL, INCIDENTAL OR OTHER INDIRECT DAMAGES OR
ANY PUNITIVE DAMAGES ARISING OUT OF OR IN CONNECTION WITH THIS AGREEMENT,
WHETHER SUCH DAMAGES ARE BASED ON BREACH OF CONTRACT, TORT (INCLUDING
NEGLIGENCE) OR OTHER THEORY OF LIABILITY. 
THESE LIMITATIONS SHALL APPLY EVEN IF A PARTY HAS BEEN ADVISED OF THE
POSSIBILITY OF SUCH DAMAGES AND NOTWITHSTANDING THE FAILURE OF ESSENTIAL
PURPOSE OF ANY REMEDY.  THE PARTIES
ACKNOWLEDGE THAT THE LIMITATIONS ON POTENTIAL LIABILITIES SET FORTH HEREIN ARE
AN ESSENTIAL

 

10

 

ELEMENT IN THE CONSIDERATION PROVIDED BY EACH
PARTY UNDER THIS AGREEMENT.

 

ARTICLE 7

 

CONFIDENTIALITY

 

7.1                                 Confidentiality
Obligations.  All information
provided, disclosed or obtained in connection with this Agreement or the
performance of any of the Parties’ activities under this Agreement shall be
subject to all applicable provisions of the Confidentiality Agreement.

 

(a)                                  All
Pre-existing Product Designs and the portions of the Tangible Design Package
related thereto shall be considered “Confidential Information” under the
Confidentiality Agreement for which Micron shall be considered a “Receiving
Party” under such agreement.

 

(b)                                 All
Supporting Materials and the portions of the Tangible Design Package related
thereto shall be considered “Confidential Information” under the
Confidentiality Agreement for which Intel shall be considered a “Receiving
Party” under such agreement.

 

(c)                                  The
terms and conditions of this Agreement shall be considered “Confidential
Information” under the Confidentiality Agreement for which Micron and Intel
shall each be considered a “Receiving Party” under such agreement.

 

7.2                                 Permitted
Disclosures.

 

(a)                                  With
respect to any of the Supporting Materials that constitute an [***] (and that is Confidential Information), Intel or its
sublicensed Permitted Affiliate(s) hereunder [***].

 

(b)                                 Intel
or its sublicensed Permitted Affiliate(s) [***].

 

(c)                                  Intel
or its sublicensed Permitted Affiliate(s) [***].

 

11

 

(d)                                 With
respect to any “Confidential Information” (as that term is defined in the
Confidentiality Agreement) listed in [***].

 

(e)                                  Intel
shall not and shall cause it Permitted Affiliates not to [***].

 

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

 

ARTICLE 8

 

TERM AND TERMINATION

 

8.1                                 Term.  The term of this Agreement
commences on the Effective Date and continues in effect in perpetuity (such
period of time, the “Term”).

 

8.2                                 No Termination.  This Agreement may not be
terminated for any reason, including breach by a Party.

 

ARTICLE 9

 

MISCELLANEOUS

 

9.1                                 Notices.  All notices and other communications
hereunder shall be in writing and shall be deemed given upon (a) transmitter’s
confirmation of a receipt of a facsimile transmission, (b) confirmed
delivery by a standard overnight carrier or when delivered by hand, (c) the
expiration of five (5) Business Days after the day when mailed in the
United States by certified or registered mail, postage prepaid, or (d) delivery
in person, addressed at the following addresses (or at such other address for a
party as shall be specified by like notice):

 

If to Intel:

 

Intel Corporation

1900 Prairie City Road

FM3-63

Folsom, CA 95630

Attention: 
[***]

Fax: [***]

 

12

 

with a copy to:

 

Intel Corporation

2200 Mission College Blvd.

Santa Clara, CA  95054

Attention:  General Counsel

Facsimile:  (408) 653-8050

 

If to Micron:

 

Micron Technology, Inc.

8000 S. Federal Way

Mail Stop 1-507

Boise, ID 
83716

Telephone:     (208) 368-4517

Facsimile:      (208)
368-4537

Attention:       General
Counsel

 

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

 

9.3                                 Assignment.  This Agreement shall be binding upon and
inure to the benefit of the successors and assigns of each Party hereto.  Except as permitted by the Joint Venture
Documents, neither this Agreement nor any right or obligation hereunder may be
assigned or delegated by either Party in whole or in part to any other Person,
without the prior written consent of the nonassigning Party.

 

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

 

9.5                                 Choice
of Law.  [***].

 

9.6                                 Jurisdiction;
Venue.  [***].

 

13

 

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

 

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

 

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

 

9.10                           Entire
Agreement.  This Agreement, together
with the Schedules attached hereto and the agreements and instruments expressly
provided for herein, and, for so long as any applicable term(s) of the Joint
Venture Documents remain in effect, the applicable terms of the Joint Venture
Documents, constitute the entire agreement of the Parties hereto with respect
to the subject matter hereof and supersede all prior agreements and
understandings, oral and written, between the Parties hereto with respect to
the subject matter hereof.

 

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

 

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

 

Signature Page Follows

 

14

 

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

 

 

	
   

  	
  INTEL
  CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ ARVIND
  SODHANI

  	
   

  
	
   

  	
  Name: Arvind
  Sodhani

  
	
   

  	
  Title:

  	
  Senior Vice
  President, Intel Corporation

  
	
   

  	
   

  	
  President,
  Intel Capital

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  MICRON
  TECHNOLOGY, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ STEVEN
  R. APPLETON

  	
   

  
	
   

  	
  Name: Steven
  R. Appleton

  
	
   

  	
  Title: Chief
  Executive Officer and President

  
						

 

THIS IS
THE SIGNATURE PAGE FOR THE PRODUCT DESIGNS ASSIGNMENT

AGREEMENT ENTERED INTO BY AND BETWEEN INTEL CORPORATION AND

MICRON TECHNOLOGY, INC.

 

15

 

SCHEDULES

 

	
  Schedule 1

  	
  Pre-Existing Product Design Designations

  
	
   

  	
   

  
	
  Schedule 2

  	
  NAND Flash Memory Design Materials and
  Information

  
	
   

  	
   

  
	
  Schedule 3

  	
  Supporting Materials

  
	
   

  	
   

  
	
  Schedule 4

  	
  Payments

  
	
   

  	
   

  
	
  Schedule 5

  	
  [***]

  
	
   

  	
   

  
	
  Schedule 6

  	
  Delivery Protocol

  

 

16

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