Document:

Exhibit 10.4

Morgan Stanley & Co. International plc

c/o Morgan Stanley & Co. LLC

1585 Broadway, 5th Floor

New York, NY 10036

July 1, 2013

	To:	Healthways, Inc.

701 Cool Springs Boulevard

Franklin, Tennessee 37067

Attention:Chief Financial Officer

Telephone No.:615-614-4929

Facsimile No.:615-778-0486

Re:            Base Warrants

The purpose of this letter agreement (this "Confirmation") is to confirm the terms and conditions of the Warrants issued by Healthways, Inc. ("Company") to Morgan Stanley & Co. International plc ("Dealer") as of the Trade Date specified below (the "Transaction").  This letter agreement constitutes a "Confirmation" as referred to in the ISDA Master Agreement specified below.  This Confirmation shall replace any previous agreements and serve as the final documentation for the Transaction.

The definitions and provisions contained in the 2002 ISDA Equity Derivatives Definitions (the "Equity Definitions"), as published by the International Swaps and Derivatives Association, Inc. ("ISDA"), are incorporated into this Confirmation. In the event of any inconsistency between the Equity Definitions and this Confirmation, this Confirmation shall govern.

Each party is hereby advised, and each such party acknowledges, that the other party has engaged in, or refrained from engaging in, substantial financial transactions and has taken other material actions in reliance upon the parties' entry into the Transaction to which this Confirmation relates on the terms and conditions set forth below.

1.            This Confirmation evidences a complete and binding agreement between Dealer and Company as to the terms of the Transaction to which this Confirmation relates.  This Confirmation shall supplement, form a part of, and be subject to an agreement in the form of the 2002 ISDA Master Agreement (the "Agreement") as if Dealer and Company had executed an agreement in such form (but without any Schedule except for the election of the laws of the State of New York as the governing law (without reference to choice of law doctrine)) on the Trade Date.  In the event of any inconsistency between provisions of that Agreement and this Confirmation, this Confirmation will prevail for the purpose of the Transaction to which this Confirmation relates.  The parties hereby agree that no Transaction other than the Transaction to which this Confirmation relates shall be governed by the Agreement.

 

2.            The Transaction is a Warrant Transaction, which shall be considered a Share Option Transaction for purposes of the Equity Definitions.  The terms of the particular Transaction to which this Confirmation relates are as follows:

 

General Terms.

		Trade Date:	July 1, 2013

		Effective Date:	The third Exchange Business Day immediately prior to the Premium Payment Date

		Warrants:	Equity call warrants, each giving the holder the right to purchase a number of Shares equal to the Warrant Entitlement at a price per Share equal to the Strike Price, subject to the terms set forth under the caption "Settlement Terms" below.  For the purposes of the Equity Definitions, each reference to a Warrant herein shall be deemed to be a reference to a Call Option.

		Warrant Style:	European

		Seller:	Company

		Buyer:	Dealer

		Shares:	The common stock of Company, par value USD 0.001 per Share (Exchange symbol "HWAY")

		Number of Warrants:	3,211,056.  For the avoidance of doubt, the Number of Warrants shall be reduced by any Warrants exercised or deemed exercised hereunder.  In no event will the Number of Warrants be less than zero.

		Warrant Entitlement:	One Share per Warrant

		Strike Price:	USD 25.9520.

Notwithstanding anything to the contrary in the Agreement, this Confirmation or the Equity Definitions, in no event shall the Strike Price be subject to adjustment  to the extent that, after giving effect to such adjustment,  the Strike Price would be less than USD 16.22, except for any adjustment pursuant to the terms of this Confirmation and the Equity Definitions in connection with stock splits or similar changes to Company's capitalization.

		Premium:	USD 6,312,500

		Premium Payment Date:	July 8, 2013

		Exchange:	The NASDAQ Global Select Market

		Related Exchange(s):	All Exchanges

Procedures for Exercise.

		Expiration Time:	The Valuation Time

		Expiration Dates:	Each Scheduled Trading Day during the period from, and including, the First Expiration Date to, but excluding, the 160th Scheduled Trading Day following the First Expiration Date shall be an "Expiration Date" for a number of Warrants equal to the Daily Number of Warrants on such date; provided that, notwithstanding anything to the contrary in the Equity Definitions, if any such date is a Disrupted Day, the Calculation Agent shall make adjustments, if applicable, to the Daily Number of Warrants or shall reduce such Daily Number of Warrants to zero for which such day shall be an Expiration Date and shall designate a Scheduled Trading Day or a number of Scheduled Trading Days as the Expiration Date(s) for the remaining Daily Number of Warrants or a portion thereof for the originally scheduled Expiration Date; and provided further that if such Expiration Date has not occurred pursuant to this clause as of the eighth Scheduled Trading Day following the last scheduled Expiration Date under the Transaction, the Calculation Agent shall have the right to declare such Scheduled Trading Day to be the final Expiration Date and the Calculation Agent shall determine its good faith estimate of the fair market value for the Shares as of the Valuation Time on that eighth Scheduled Trading Day or on any subsequent Scheduled Trading Day, as the Calculation Agent shall determine using commercially reasonable means.

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		First Expiration Date:	October 1, 2018 (or if such day is not a Scheduled Trading Day, the next following Scheduled Trading Day), subject to Market Disruption Event below.

		Daily Number of Warrants:	For any Expiration Date, the Number of Warrants that have not expired or been exercised as of such day, divided by the remaining number of Expiration Dates (including such day), rounded down to the nearest whole number, subject to adjustment pursuant to the provisos to "Expiration Dates".

		Automatic Exercise:	Applicable; and means that for each Expiration Date, a number of Warrants equal to the Daily Number of Warrants for such Expiration Date will be deemed to be automatically exercised at the Expiration Time on such Expiration Date, provided that all references in Section 3.4(b) of the Equity Definitions to "Physical Settlement" shall be read as references to "Net Share Settlement".

		Market Disruption Event:	Section 6.3(a) of the Equity Definitions is hereby amended by replacing clause (ii) in its entirety with "(ii) an Exchange Disruption, or" and inserting immediately following clause (iii) the phrase "; in each case that the Calculation Agent determines is material."

Section 6.3(d) of the Equity Definitions is hereby amended by deleting the remainder of the provision following the words "Scheduled Closing Time" in the fourth line thereof.

Valuation Terms.

		Valuation Time:	Scheduled Closing Time; provided that if the principal trading session is extended, the Calculation Agent shall determine the Valuation Time in good faith using its commercially reasonable discretion.

		Valuation Date:	Each Exercise Date.

Settlement Terms.

		Settlement Method:	Net Share Settlement.

		Net Share Settlement:	On the relevant Settlement Date, Company shall deliver to Dealer a number of Shares equal to the Share Delivery Quantity for such Settlement Date to the account specified herein free of payment through the Clearance System, and Dealer shall be treated as the holder of record of such Shares at the time of delivery of such Shares or, if earlier, at 5:00 p.m. (New York City time) on such Settlement Date, and Company shall pay to Dealer cash in lieu of any fractional Share based on the Settlement Price on the relevant Valuation Date.

		Share Delivery Quantity:	For any Settlement Date, a number of Shares, as calculated by the Calculation Agent, equal to the Net Share Settlement Amount for such Settlement Date divided by the Settlement Price on the Valuation Date for such Settlement Date.

		Net Share Settlement Amount:	For any Settlement Date, an amount equal to the product of (i) the number of Warrants exercised or deemed exercised on the relevant Exercise Date, (ii) the Strike Price Differential for the relevant Valuation Date and (iii) the Warrant Entitlement.

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		Settlement Price:	For any Valuation Date, the per Share volume-weighted average price as displayed under the heading "Bloomberg VWAP" on Bloomberg page HWAY <equity> AQR (or any successor thereto) in respect of the period from the scheduled opening time of the Exchange to the Scheduled Closing Time on such Valuation Date (or if such volume-weighted average price is unavailable, the market value of one Share on such Valuation Date, as determined by the Calculation Agent).  Notwithstanding the foregoing, if (i) any Expiration Date is a Disrupted Day and (ii) the Calculation Agent determines that such Expiration Date shall be an Expiration Date for fewer than the Daily Number of Warrants, as described above, then the Settlement Price for the relevant Valuation Date shall be the volume-weighted average price per Share on such Valuation Date on the Exchange, as determined by the Calculation Agent based on such sources as it deems appropriate using a volume-weighted methodology, for the portion of such Valuation Date for which the Calculation Agent determines there is no Market Disruption Event.

		Settlement Dates:	As determined pursuant to Section 9.4 of the Equity Definitions, subject to Section 9(k)(i) hereof.

		Other Applicable Provisions:	The provisions of Sections 9.1(c), 9.8, 9.9, 9.11 and 9.12 of the Equity Definitions will be applicable, except that all references in such provisions to "Physically-settled" shall be read as references to "Net Share Settled." "Net Share Settled" in relation to any Warrant means that Net Share Settlement is applicable to that Warrant.

		Representation and Agreement:	Notwithstanding Section 9.11 of the Equity Definitions, the parties acknowledge that any Shares delivered to Dealer may be, upon delivery, subject to restrictions and limitations arising from Company's status as issuer of the Shares under applicable securities laws.

	
3.

	
Additional Terms applicable to the Transaction.

Adjustments applicable to the Transaction:

		Method of Adjustment:	Calculation Agent Adjustment.  For the avoidance of doubt, in making any adjustments under the Equity Definitions, the Calculation Agent may make adjustments, if any, to any one or more of the Strike Price, the Number of Warrants, the Daily Number of Warrants and the Warrant Entitlement.  Notwithstanding the foregoing, any cash dividends or distributions on the Shares, whether or not extraordinary, shall be governed by Section 9(f) of this Confirmation in lieu of Article 10 or Section 11.2(c) of the Equity Definitions.

Extraordinary Events applicable to the Transaction:

		New Shares:	Section 12.1(i) of the Equity Definitions is hereby amended (a) by deleting the text in clause (i) thereof in its entirety (including the word "and" following clause (i)) and replacing it with the phrase "publicly quoted, traded or listed (or whose related depositary receipts are publicly quoted, traded or listed) on any of the New York Stock Exchange, The NASDAQ Global Select Market or The NASDAQ Global Market (or their respective successors)" and (b) by inserting immediately prior to the period the phrase "and (iii) of an entity or person that is a corporation organized under the laws of the United States, any State thereof or the District of Columbia that also becomes Company under the Transaction following such Merger Event or Tender Offer".

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Consequence of Merger Events:

		Merger Event:	Applicable; provided that if an event occurs that constitutes both a Merger Event under Section 12.1(b) of the Equity Definitions and an Additional Termination Event under Section 9(h)(ii)(B) of this Confirmation, Dealer may elect, in its commercially reasonable judgment, whether the provisions of Section 12.2 of the Equity Definitions or Section 9(h)(ii)(B) will apply.

		Share-for-Share:	Modified Calculation Agent Adjustment

		Share-for-Other:	Cancellation and Payment (Calculation Agent Determination)

		Share-for-Combined:	Cancellation and Payment (Calculation Agent Determination); provided that Dealer may elect, in its commercially reasonable judgment, Component Adjustment (Calculation Agent Determination) for all or any portion of the Transaction.

Consequence of Tender Offers:

		Tender Offer:	Applicable; provided that Section 12.1(d) of the Equity Definitions is hereby amended by replacing "10%" with "25%", and provided further that if an event occurs that constitutes both a Tender Offer under Section 12.1(d) of the Equity Definitions and Additional Termination Event under Section 9(h)(ii)(A) of this Confirmation, Dealer may elect, in its commercially reasonable judgment, whether the provisions of Section 12.3 of the Equity Definitions or Section 9(h)(ii)(A) will apply.

		Share-for-Share:	Modified Calculation Agent Adjustment

		Share-for-Other:	Modified Calculation Agent Adjustment

		Share-for-Combined:	Modified Calculation Agent Adjustment

		Announcement Event:	If an Announcement Date occurs in respect of a Merger Event (for the avoidance of doubt, determined without regard to the language in the definition of "Merger Event" following the definition of "Reverse Merger" therein) or Tender Offer (such occurrence, an "Announcement Event"), then on the earliest of the Expiration Date, Early Termination Date or other date of cancellation (the "Announcement Event Adjustment Date") in respect of each Warrant, the Calculation Agent will determine the economic effect on such Warrant of the Announcement Event (regardless of whether the Announcement Event actually results in a Merger Event or Tender Offer, and taking into account such factors as the Calculation Agent may determine, including, without limitation, changes in volatility, expected dividends, stock loan rate or liquidity relevant to the Shares or the Transaction whether prior to or after the Announcement Event or for any period of time, including, without limitation, the period from the Announcement Event to the relevant Announcement Event Adjustment Date).  If the Calculation Agent determines that such economic effect on any Warrant is material, then on the Announcement Event Adjustment Date for such Warrant, the Calculation Agent may make such adjustment to the exercise, settlement, payment or any other terms of such Warrant as the Calculation Agent determines appropriate to account for such economic effect, which adjustment shall be effective immediately prior to the exercise, termination or cancellation of such Warrant, as the case may be.

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		Announcement Date:	The definition of "Announcement Date" in Section 12.1 of the Equity Definitions is hereby amended by (i) replacing the words "a firm" with the word "any" in the second and fourth lines thereof, (ii) replacing the word "leads to the" with the words ", if completed, would lead to a" in the third and the fifth lines thereof, (iii) replacing the words "voting shares" with the word "Shares" in the fifth line thereof, and (iv) inserting the words "by any entity" after the word "announcement" in the second and the fourth lines thereof.

		Nationalization, Insolvency or Delisting:	Cancellation and Payment (Calculation Agent Determination); provided that, in addition to the provisions of Section 12.6(a)(iii) of the Equity Definitions, it will also constitute a Delisting if the Exchange is located in the United States and the Shares are not immediately re-listed, re-traded or re-quoted on any of the New York Stock Exchange, The NASDAQ Global Select Market or The NASDAQ Global Market (or their respective successors); if the Shares are immediately re-listed, re-traded or re-quoted on any of the New York Stock Exchange, The NASDAQ Global Select Market or The NASDAQ Global Market (or their respective successors), such exchange or quotation system shall thereafter be deemed to be the Exchange.

Additional Disruption Events:

		Change in Law:	Applicable; provided that Section 12.9(a)(ii) of the Equity Definitions is hereby amended by (i) replacing the word "Shares" with the phrase "Hedge Positions" in clause (X) thereof and (ii) inserting the parenthetical "(including, for the avoidance of doubt and without limitation, adoption or promulgation of new regulations authorized or mandated by existing statute)" at the end of clause (A) thereof.

		Failure to Deliver:	Not Applicable

		Insolvency Filing:	Applicable

		Hedging Disruption:	Applicable; provided that:

		(i)	Section 12.9(a)(v) of the Equity Definitions is hereby amended by (a) inserting the following words at the end of clause (A) thereof:  "in the manner contemplated by the Hedging Party on the Trade Date" and (b) inserting the following two phrases at the end of such Section:

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"For the avoidance of doubt, the term "equity price risk" shall be deemed to include, but shall not be limited to, stock price and volatility risk. And, for the further avoidance of doubt, any such transactions or assets referred to in phrases (A) or (B) above must be available on commercially reasonable pricing terms."; and

		(ii)	Section 12.9(b)(iii) of the Equity Definitions is hereby amended by inserting in the third line thereof,  after the words "to terminate the Transaction", the words "or a portion of the Transaction affected by such Hedging Disruption".

		Increased Cost of Hedging:	Not Applicable

		Loss of Stock Borrow:	Applicable, it being understood that the Hedging Party's rate to borrow Shares shall be determined (x) by reference to the terms of the Hedging Party's commercially reasonable share lending agreements (which rate shall be, if the Hedging Party posts cash collateral under such share lending agreements, the negative spread on the rebate rate paid to the Hedging Party on cash collateral by the securities lender under such share lending agreements) and (y) without regard to the Hedging Party's cost of funding.

		Maximum Stock Loan Rate:	200 basis points

		Increased Cost of Stock Borrow:	Applicable, it being understood that the Hedging Party's rate to borrow Shares shall be determined (x) by reference to the terms of the Hedging Party's commercially reasonable share lending agreements (which rate shall be, if the Hedging Party posts cash collateral under such share lending agreements, the negative spread on the rebate rate paid to the Hedging Party on cash collateral by the securities lender under such share lending agreements) and (y) without regard to the Hedging Party's cost of funding.

		Initial Stock Loan Rate:	25 basis points

		Hedging Party:	For all applicable Additional Disruption Events, Dealer.

		Determining Party:	For all applicable Extraordinary Events, Dealer.

		Non-Reliance:	Applicable.

Agreements and Acknowledgments

		Regarding Hedging Activities:	Applicable

		Additional Acknowledgments:	Applicable

	
4.           Calculation Agent.     

	
Dealer, whose judgments, determinations and calculations shall be made in good faith and in a commercially reasonable manner. Following any determination or calculation by the Calculation Agent, upon a written request by Company, the Calculation Agent shall promptly (but in any event within three Scheduled Trading Days) provide to Company by email to the email address provided by Company in such request a report (in a commonly used file format for the storage and manipulation of financial data) displaying in reasonable detail the basis for such determination or calculation (including any assumptions used in making such determination or calculation), it being understood that the Calculation Agent shall not be obligated to disclose any proprietary models or proprietary information used by it for such determination or calculation.

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5.

	
Account Details.

	
(a)

	
Account for payments to Company:                                                                                    

Bank:                                                      Suntrust Bank

Account Name:                           Healthways, Inc Master Operating Account

Acct No.:                                           1000056392029

Fedwire Routing Number: 061000104

Account for delivery of Shares from Company:

To be provided by Company

	
(b)

	
Account for payments to Dealer:

Bank: Citibank, N.A.

SWIFT: CITIUS33

Bank Routing: 021-000-089

Acct Name: Morgan Stanley and Co.

Acct. No.: 30632076

Account for delivery of Shares to Dealer:

To be provided by Dealer

	
6.

	
Offices.

	
(a)

	
The Office of Company for the Transaction is:  Inapplicable, Company is not a Multibranch Party.

	
(b)

	
The Office of Dealer for the Transaction is: New York

Morgan Stanley & Co. International plc

c/o Morgan Stanley & Co. LLC

1585 Broadway, 5th Floor

New York, NY 10036

	
7.

	
Notices.

	
(a)

	
Address for notices or communications to Company:

Healthways, Inc.

701 Cool Springs Boulevard

Franklin, Tennessee 37067

Attention:                          Chief Financial Officer

Telephone No.:              615-614-4929

Facsimile No.:                  615-778-0486

	
(b)

	
Address for notices or communications to Dealer:

		To:	Morgan Stanley & Co. International plc

c/o Morgan Stanley & Co. LLC

1585 Broadway, 5th Floor

New York, NY 10036

Attn:                          Usman Khan

Telephone:                          (212) 761-0955

Facsimile:                          (212) 507-4261

Email:                          Usman.S.Khan@morganstanley.com

		With a copy to:	Morgan Stanley & Co. International plc

c/o Morgan Stanley & Co. LLC

1221 Avenue of the Americas, 34th Floor

New York, NY 10020

Attn:                          Anthony Cicia

Telephone:          (212) 762-4828

Facsimile:              (212) 507-4338

Email:                        Anthony.Cicia@morganstanley.com

	
8.

	
Representations and Warranties of Company.

Each of the representations and warranties of Company set forth in Section 3 of the Purchase Agreement (the "Purchase Agreement"), dated as of July 1, 2013, between Company and J.P. Morgan Securities LLC, as representative of the Initial Purchasers party thereto (the "Initial Purchaser"), are true and correct and are hereby deemed to be repeated to Dealer as if set forth herein.  Company hereby further represents and warrants to Dealer on the date hereof, on and as of the Premium Payment Date and, in the case of the representations in Section 8(d), at all times following the Premium Payment Date until termination of the Transaction, that:

	
(a)

	
Company has all necessary corporate power and authority to execute, deliver and perform its obligations in respect of the Transaction; such execution, delivery and performance have been duly authorized by all necessary corporate action on Company's part; and this Confirmation has been duly and validly executed and delivered by Company and constitutes its valid and binding obligation, enforceable against Company in accordance with its terms, subject to applicable bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium and similar laws affecting creditors' rights and remedies generally, and subject, as to enforceability, to general principles of equity, including principles of commercial reasonableness, good faith and fair dealing (regardless of whether enforcement is sought in a proceeding at law or in equity) and except that rights to indemnification and contribution hereunder may be limited by federal or state securities laws or public policy relating thereto.

	
(b)

	
Neither the execution and delivery of this Confirmation nor the incurrence or performance of obligations of Company hereunder will conflict with or result in a breach of the certificate of incorporation or by‐laws (or any equivalent documents) of Company, or any applicable law or regulation, or any order, writ, injunction or decree of any court or governmental authority or agency, or any agreement or instrument to which Company or any of its subsidiaries is a party or by which Company or any of its subsidiaries is bound or to which Company or any of its subsidiaries is subject, or constitute a default under, or result in the creation of any lien under, any such agreement or instrument.

	
(c)

	
No consent, approval, authorization, or order of, or filing with, any governmental agency or body or any court is required in connection with the execution, delivery or performance by Company of this Confirmation, except such as have been obtained or made and such as may be required under the Securities Act of 1933, as amended (the "Securities Act") or state securities laws.

	
(d)

	
A number of Shares equal to the Maximum Number of Shares (as defined below) (the "Warrant Shares") have been reserved for issuance by all required corporate action of Company.  The Warrant Shares have been duly authorized and, when delivered against payment therefor (which may include Net Share Settlement in lieu of cash) and otherwise as contemplated by the terms of the Warrants following the exercise of the Warrants in accordance with the terms and conditions of the Warrants, will be validly issued, fully-paid and non-assessable, and the issuance of the Warrant Shares will not be subject to any preemptive or similar rights.

	
(e)

	
Company is not and, after consummation of the transactions contemplated hereby, will not be required to register as an "investment company" as such term is defined in the Investment Company Act of 1940, as amended.

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(f)

	
Company is an "eligible contract participant" (as such term is defined in Section 1a(18) of the Commodity Exchange Act, as amended, other than a person that is an eligible contract participant under Section 1a(18)(C) of the Commodity Exchange Act).

	
(g)

	
Company and each of its affiliates is not, on the date hereof, in possession of any material non-public information with respect to Company or the Shares.

	
(h)

	
No state or local (including any non-U.S. jurisdiction's) law, rule, regulation or regulatory order applicable to the Shares would give rise to any reporting, consent, registration or other requirement (including without limitation a requirement to obtain prior approval from any person or entity) as a result of Dealer or its affiliates owning or holding (however defined) Shares.

	
(i)

	
Company (A) is capable of evaluating investment risks independently, both in general and with regard to all transactions and investment strategies involving a security or securities; (B) will exercise independent judgment in evaluating the recommendations of any broker-dealer or its associated persons, unless it has otherwise notified the broker-dealer in writing; and (C) has total assets of at least $50 million.

	
9.

	
Other Provisions.

	
(a)

	
Opinions.  Company shall deliver to Dealer an opinion of counsel, dated as of the Trade Date, with respect to the matters set forth in Sections 8(a) through (d) of this Confirmation.  Delivery of such opinion to Dealer shall be a condition precedent for the purpose of Section 2(a)(iii) of the Agreement with respect to each obligation of Dealer under Section 2(a)(i) of the Agreement.

	
(b)

	
Repurchase Notices.  Company shall, on any day on which Company effects any repurchase of Shares, promptly give Dealer a written notice of such repurchase (a "Repurchase Notice") on such day if following such repurchase, the number of outstanding Shares on such day, subject to any adjustments provided herein, is (i) less than 32.875 million (in the case of the first such notice) or (ii) thereafter more than 1.345 million less than the number of Shares included in the immediately preceding Repurchase Notice.  Company agrees to indemnify and hold harmless Dealer and its affiliates and their respective officers, directors, employees, affiliates, advisors, agents and controlling persons (each, an "Indemnified Person") from and against any and all losses (including losses relating to Dealer's hedging activities as a consequence of becoming, or of the risk of becoming, a Section 16 "insider", including without limitation, any forbearance from hedging activities or cessation of hedging activities and any losses in connection therewith with respect to the Transaction), claims, damages, judgments, liabilities and expenses (including reasonable attorney's fees), joint or several, which an Indemnified Person actually may become subject to, as a result of Company's failure to provide Dealer with a Repurchase Notice on the day and in the manner specified in this paragraph, and to reimburse, within 30 days, upon written request, each of such Indemnified Persons for any reasonable legal or other expenses incurred in connection with investigating, preparing for, providing testimony or other evidence in connection with or defending any of the foregoing.  If any suit, action, proceeding (including any governmental or regulatory investigation), claim or demand shall be brought or asserted against the Indemnified Person, such Indemnified Person shall promptly notify Company in writing, and Company, upon request of the Indemnified Person, shall retain counsel reasonably satisfactory to the Indemnified Person to represent the Indemnified Person and any others Company may designate in such proceeding and shall pay the fees and expenses of such counsel related to such proceeding.  Company shall not be liable for any settlement of any proceeding effected without its written consent, but if settled with such consent or if there be a final judgment for the plaintiff, Company agrees to indemnify any Indemnified Person from and against any loss or liability by reason of such settlement or judgment.  Company shall not, without the prior written consent of the Indemnified Person, effect any settlement of any pending or threatened proceeding in respect of which any Indemnified Person is or could have been a party and indemnity could have been sought hereunder by such Indemnified Person, unless such settlement includes an unconditional release of such Indemnified Person from all liability on claims that are the subject matter of such proceeding on terms reasonably satisfactory to such Indemnified Person.  If the indemnification provided for in this paragraph is unavailable to an Indemnified Person or insufficient in respect of any losses, claims, damages or liabilities referred to therein, then Company under such paragraph, in lieu of indemnifying such Indemnified Person thereunder, shall contribute to the amount paid or payable by such Indemnified Person as a result of such losses, claims, damages or liabilities.  The remedies provided for in this paragraph are not exclusive and shall not limit any rights or remedies which may otherwise be available to any Indemnified Person at law or in equity.  The indemnity and contribution agreements contained in this paragraph shall remain operative and in full force and effect regardless of the termination of the Transaction.

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(c)

	
Regulation M.  Company is not on the Trade Date engaged in a distribution, as such term is used in Regulation M under the Securities Exchange Act of 1934, as amended (the "Exchange Act"), of any securities of Company, other than a distribution meeting the requirements of the exception set forth in Rules 101(b)(10) and 102(b)(7) of Regulation M.  Company shall not, until the second Scheduled Trading Day immediately following the Effective Date, engage in any such distribution.

	
(d)

	
No Manipulation.  Company is not entering into the Transaction to create actual or apparent trading activity in the Shares (or any security convertible into or exchangeable for the Shares) or to raise or depress or otherwise manipulate the price of the Shares (or any security convertible into or exchangeable for the Shares) or otherwise in violation of the Exchange Act.

	
(e)

	
Transfer or Assignment.  Company may not transfer any of its rights or obligations under the Transaction without the prior written consent of Dealer.  Dealer may, without Company's consent, transfer or assign all or any part of its rights or obligations under the Transaction to any third party; provided, however, that the transferee or assignee shall not be entitled to receive any greater payment of additional amounts under Section 2(d)(i)(4) of the Agreement than Dealer would have been entitled to receive, except to the extent that such entitlement to receive a greater payment results from a Change in Tax Law that occurs after the date of the transfer or assignment.  If at any time at which (A) the Section 16 Percentage exceeds 7.5%, (B) the Warrant Equity Percentage exceeds 14.5%, or (C) the Share Amount exceeds the Applicable Share Limit (if any applies) (any such condition described in clauses (A), (B) or (C), an "Excess Ownership Position"), Dealer is unable after using its commercially reasonable efforts to effect a transfer or assignment of Warrants to a third party on pricing terms reasonably acceptable to Dealer and within a time period reasonably acceptable to Dealer such that no Excess Ownership Position exists, then Dealer may designate any Exchange Business Day as an Early Termination Date with respect to a portion of the Transaction (the "Terminated Portion"), such that following such partial termination no Excess Ownership Position exists.  In the event that Dealer so designates an Early Termination Date with respect to a Terminated Portion, a payment shall be made pursuant to Section 6 of the Agreement as if (1) an Early Termination Date had been designated in respect of a Transaction having terms identical to the Transaction and a Number of Warrants equal to the number of Warrants underlying the Terminated Portion, (2) Company were the sole Affected Party with respect to such partial termination and (3) the Terminated Portion were the sole Affected Transaction (and, for the avoidance of doubt, the provisions of Section 9(j) shall apply to any amount that is payable by Company to Dealer pursuant to this sentence as if Company was not the Affected Party).  The "Section 16 Percentage" as of any day is the fraction, expressed as a percentage, (A) the numerator of which is the number of Shares that Dealer and each person subject to aggregation of Shares with Dealer under Section 13 or Section 16 of the Exchange Act and rules promulgated thereunder directly or indirectly beneficially own (as defined under Section 13 or Section 16 of the Exchange Act and rules promulgated thereunder) and (B) the denominator of which is the number of Shares outstanding.  The "Warrant Equity Percentage" as of any day is the fraction, expressed as a percentage, (A) the numerator of which is the sum of (1) the product of the Number of Warrants and the Warrant Entitlement and (2) the aggregate number of Shares underlying any other warrants purchased by Dealer from Company, and (B) the denominator of which is the number of Shares outstanding.  The "Share Amount" as of any day is the number of Shares that Dealer and any person whose ownership position would be aggregated with that of Dealer (Dealer or any such person, a "Dealer Person") under any law, rule, regulation, regulatory order or organizational documents or contracts of Company that are, in each case, applicable to ownership of Shares ("Applicable Restrictions"), owns, beneficially owns, constructively owns, controls, holds the power to vote or otherwise meets a relevant definition of ownership under any Applicable Restriction, as determined by Dealer in its reasonable discretion.  The "Applicable Share Limit" means a number of Shares equal to (A) the minimum number of Shares that could give rise to reporting or registration obligations or other requirements (including obtaining prior approval from any person or entity) of a Dealer Person, or could result in an adverse effect on a Dealer Person, under any Applicable Restriction, as determined by Dealer in its reasonable discretion, minus (B) 1% of the number of Shares outstanding.  Notwithstanding any other provision in this Confirmation to the contrary requiring or allowing Dealer to purchase, sell, receive or deliver any Shares or other securities, or make or receive any payment in cash, to or from Company, Dealer may designate any of its affiliates to purchase, sell, receive or deliver such Shares or other securities, or make or receive such payment in cash, and otherwise to perform Dealer's obligations in respect of the Transaction and any such designee may assume such obligations.  Dealer shall be discharged of its obligations to Company to the extent of any such performance.

10

	
(f)

	
Dividends.  If at any time during the period from and including the Effective Date, to and including the last Expiration Date, an ex-dividend date for a cash dividend occurs with respect to the Shares (an "Ex-Dividend Date"), then the Calculation Agent will adjust any of the Strike Price, Number of Warrants, Daily Number of Warrants and/or any other variable relevant to the exercise, settlement or payment of the Transaction to preserve the fair value of the Warrants after taking into account such dividend.

	
(g)

	
Role of Agent.  Morgan Stanley & Co. LLC ("MS&CO") is acting as agent for both parties but does not guarantee the performance of either party. (i) Neither Dealer nor Company shall contact the other with respect to any matter relating to the Transaction without the direct involvement of MS&CO; (ii) MS&CO, Dealer and Company each hereby acknowledges that any transactions by Dealer or MS&CO with respect to Shares will be undertaken by Dealer as principal for its own account; (iii) all of the actions to be taken by Dealer and MS&CO in Connection with the Transaction shall be taken by Dealer or MS&CO independently and without any advance or subsequent consultation with Company; and (iv) MS&CO is hereby authorized to act as agent for Company only to the extent required to satisfy the requirements of Rule 15a-6 under the Exchange Act in respect of the Transaction.

	
(h)

	
Additional Provisions.

	
(i)

	
Amendments to the Equity Definitions:

	
(A)

	
Section 11.2(a) of the Equity Definitions is hereby amended by deleting the words "a diluting or concentrative" and replacing them with the words "an"; and adding the phrase "or Warrants" at the end of the sentence.

	
(B)

	
Section 11.2(c) of the Equity Definitions is hereby amended by (w) replacing the words "a diluting or concentrative" with "an" in the fifth line thereof, (x) adding the phrase "or Warrants" after the words "the relevant Shares" in the same sentence, (y) deleting the words "diluting or concentrative" in the sixth to last line thereof and (z) deleting the phrase "(provided that no adjustments will be made to account solely for changes in volatility, expected dividends, stock loan rate or liquidity relative to the relevant Shares)" and replacing it with the phrase "(and, for the avoidance of doubt, adjustments may be made to account solely for changes in volatility, expected dividends, stock loan rate or liquidity relative to the relevant Shares)."

	
(C)

	
Section 11.2(e)(vii) of the Equity Definitions is hereby amended by deleting the words "a diluting or concentrative" and replacing them with the word "a material"; and adding the phrase "or Warrants" at the end of the sentence.

	
(D)

	
Section 12.6(a)(ii) of the Equity Definitions is hereby amended by (1) deleting from the fourth line thereof the word "or" after the word "official" and inserting a comma therefor, and (2) deleting the semi-colon at the end of subsection (B) thereof and inserting the following words therefor "or (C) the occurrence of any of the events specified in Section 5(a)(vii) (1) through (9) of the ISDA Master Agreement with respect to that Issuer."

	
(E)

	
Section 12.9(b)(iv) of the Equity Definitions is hereby amended by:

		(x)	deleting (1) subsection (A) in its entirety, (2) the phrase "or (B)" following subsection (A) and (3) the phrase "in each case" in subsection (B); and

		(y)	replacing the phrase "neither the Non-Hedging Party nor the Lending Party lends Shares" with the phrase "such Lending Party does not lend Shares" in the penultimate sentence.

	
(F)

	
Section 12.9(b)(v) of the Equity Definitions is hereby amended by:

11

		(x)	adding the word "or" immediately before subsection "(B)" and deleting the comma at the end of subsection (A); and

		(y)	(1) deleting subsection (C) in its entirety, (2) deleting the word "or" immediately preceding subsection (C), (3) deleting the penultimate sentence in its entirety and replacing it with the sentence "The Hedging Party will determine the Cancellation Amount payable by one party to the other." and (4) deleting clause (X) in the final sentence.

	
(ii)

	
Notwithstanding anything to the contrary in this Confirmation, upon the occurrence of one of the following events, with respect to the Transaction, (1) Dealer shall have the right to designate such event an Additional Termination Event and designate an Early Termination Date pursuant to Section 6(b) of the Agreement, (2) Company shall be deemed the sole Affected Party with respect to such Additional Termination Event and (3) the Transaction, or, at the election of Dealer in its sole discretion, any portion of the Transaction, shall be deemed the sole Affected Transaction; provided that if Dealer so designates an Early Termination Date with respect to a portion of the Transaction, (a) a payment shall be made pursuant to Section 6 of the Agreement as if an Early Termination Date had been designated in respect of a Transaction having terms identical to the Transaction and a Number of Warrants equal to the number of Warrants included in the terminated portion of the Transaction, with, for the avoidance of doubt, the provisions of Section 9(j) applicable to such payment, and (b) for the avoidance of doubt, the Transaction shall remain in full force and effect except that the Number of Warrants shall be reduced by the number of Warrants included in such terminated portion:

	
(A)

	
A "person" or "group" within the meaning of Section 13(d) of the Exchange Act, other than Company, its subsidiaries and its and their employee benefit plans, files a Schedule TO or any schedule, form or report under the Exchange Act disclosing that such person or group has become the direct or indirect "beneficial owner," as defined in Rule 13d-3 under the Exchange Act, of the common equity of Company representing more than 50% of the voting power of such common equity.

	
(B)

	
Consummation of (I) any recapitalization, reclassification or change of the Shares (other than changes resulting from a subdivision or combination) as a result of which the Shares would be converted into, or exchanged for, stock, other securities, other property or assets or (II) any share exchange, consolidation or merger of Company pursuant to which the Shares will be converted into cash, securities or other property or assets or (III) any sale, lease or other transfer in one transaction or a series of transactions of all or substantially all of the consolidated assets of Company and its subsidiaries, taken as a whole, to any person other than one of Company's subsidiaries.  Notwithstanding the foregoing, any transaction or transactions set forth in this clause (B) shall not constitute an Additional Termination Event if (x) at least 90% of the consideration received or to be received by holders of the Shares, excluding cash payments for fractional Shares and cash payments made pursuant to dissenters' appraisal rights, in connection with such transaction or transactions consists of shares of common stock that are listed or quoted on any of The New York Stock Exchange, The NASDAQ Global Select Market or The NASDAQ Global Market (or any of their respective successors) or will be so listed or quoted when issued or exchanged in connection with such transaction or transactions, and (y) as a result of such transaction or transactions, the Shares will consist of such consideration, excluding cash payments for fractional Shares and cash payments made pursuant to dissenters' appraisal rights.

	
(C)

	
Default by Company or any of its subsidiaries with respect to any mortgage, agreement or other instrument under which there may be outstanding, or by which there may be secured or evidenced, any indebtedness for money borrowed in excess of $10 million (or its foreign currency equivalent) in the aggregate of Company and/or any such subsidiary, whether such indebtedness now exists or shall hereafter be created (i) resulting in such indebtedness becoming or being declared due and payable prior to its stated maturity or (ii) constituting a failure to pay the principal or interest of any such debt when due and payable (after the expiration of all applicable grace periods) at its stated maturity, upon required repurchase, upon declaration of acceleration or otherwise.

12

	
(D)

	
A final judgment for the payment of $10 million (or its foreign currency equivalent) or more (excluding any amounts covered by insurance) rendered against Company or any of its subsidiaries, which judgment is not discharged or stayed within 60 days after (I) the date on which the right to appeal thereof has expired if no such appeal has commenced, or (II) the date on which all rights to appeal have been extinguished.

	
(E)

	
Dealer, despite using commercially reasonable efforts, is unable or reasonably determines that it is illegal, to effect a commercially reasonable hedge its exposure with respect to the Transaction in the public market without registration under the Securities Act or as a result of any legal, regulatory or self-regulatory requirements or related policies and procedures (whether or not such requirements, policies or procedures are imposed by law or have been voluntarily adopted by Dealer).

	
(i)

	
No Collateral or Setoff.  Notwithstanding any provision of the Agreement or any other agreement between the parties to the contrary, the obligations of Company hereunder are not secured by any collateral.  Obligations under the Transaction shall not be set off by Company against any other obligations of the parties, whether arising under the Agreement, this Confirmation, under any other agreement between the parties hereto, by operation of law or otherwise.  Any provision in the Agreement with respect to the satisfaction of Company's payment obligations to the extent of Dealer's payment obligations to Company in the same currency and in the same Transaction (including, without limitation Section 2(c) thereof) shall not apply to Company and, for the avoidance of doubt, Company shall fully satisfy such payment obligations notwithstanding any payment obligation to Company by Dealer in the same currency and in the same Transaction. In calculating any amounts under Section 6(e) of the Agreement, notwithstanding anything to the contrary in the Agreement, (1) separate amounts shall be calculated as set forth in such Section 6(e) with respect to (a) the Transaction and (b) all other Transactions, and (2) such separate amounts shall be payable pursuant to Section 6(d)(ii) of the Agreement.  For the avoidance of doubt and notwithstanding anything to the contrary provided in this Section 9(i), in the event of bankruptcy or liquidation of either Company or Dealer, neither party shall have the right to set off any obligation that it may have to the other party under the Transaction against any obligation such other party may have to it, whether arising under the Agreement, this Confirmation or any other agreement between the parties hereto, by operation of law or otherwise. Also, for the avoidance of doubt, the provisions of Section 9(j) shall be applicable to such payment.

	
(j)

	
Alternative Calculations and Payment on Early Termination and on Certain Extraordinary Events.

	
(i)

	
If, in respect of the Transaction, an amount is payable by Company to Dealer, (A) pursuant to Section 12.7 or Section 12.9 of the Equity Definitions or (B) pursuant to Section 6(d)(ii) of the Agreement (any such amount, a "Payment Obligation"), Company shall satisfy the Payment Obligation by the Share Termination Alternative (as defined below), unless (a) Company gives irrevocable telephonic notice to Dealer, confirmed in writing within one Scheduled Trading Day, no later than 12:00 p.m. (New York City time) on the Merger Date, Tender Offer Date, Announcement Date (in the case of a Nationalization, Insolvency or Delisting), Early Termination Date or date of cancellation, as applicable, of its election that the Share Termination Alternative shall not apply, (b) Company remakes the representation set forth in Section 8(g) as of the date of such election and (c) Dealer agrees, in its sole discretion, to such election, in which case the provisions of Section 12.7 or Section 12.9 of the Equity Definitions, or the provisions of Section 6(d)(ii) of the Agreement, as the case may be, shall apply.

		Share Termination Alternative:	If applicable, Company shall deliver to Dealer the Share Termination Delivery Property on the date (the "Share Termination Payment Date") on which the Payment Obligation would otherwise be due pursuant to Section 12.7 or Section 12.9 of the Equity Definitions or Section 6(d)(ii) of the Agreement, as applicable, subject to Section 9(k)(i) below, in satisfaction, subject to Section 9(k)(ii) below, of the relevant Payment Obligation, in the manner reasonably requested by Dealer free of payment.

13

Share Termination Delivery

		Property:	A number of Share Termination Delivery Units, as calculated by the Calculation Agent, equal to the relevant Payment Obligation divided by the Share Termination Unit Price.  The Calculation Agent shall adjust the amount of Share Termination Delivery Property by replacing any fractional portion of a security therein with an amount of cash equal to the value of such fractional security based on the values used to calculate the Share Termination Unit Price (without giving effect to any discount pursuant to Section 9(k)(i)).

		Share Termination Unit Price:	The value of property contained in one Share Termination Delivery Unit on the date such Share Termination Delivery Units are to be delivered as Share Termination Delivery Property, as determined by the Calculation Agent in its good faith discretion by commercially reasonable means.  In the case of a Private Placement of Share Termination Delivery Units that are Restricted Shares (as defined below), as set forth in Section 9(k)(i) below, the Share Termination Unit Price shall be determined by the discounted price applicable to such Share Termination Delivery Units.  In the case of a Registration Settlement of Share Termination Delivery Units that are Restricted Shares (as defined below) as set forth in Section 9(k)(ii) below, notwithstanding the foregoing, the Share Termination Unit Price shall be the Settlement Price on the Merger Date, Tender Offer Date, Announcement Date (in the case of a Nationalization, Insolvency or Delisting), Early Termination Date or date of cancellation, as applicable.  The Calculation Agent shall notify Company of the Share Termination Unit Price at the time of notification of such Payment Obligation to Company or, if applicable, at the time the discounted price applicable to the relevant Share Termination Units is determined pursuant to Section 9(k)(i).

		Share Termination Delivery Unit:	One Share or, if the Shares have changed into cash or any other property or the right to receive cash or any other property as the result of a Nationalization, Insolvency or Merger Event (any such cash or other property, the "Exchange Property"), a unit consisting of the type and amount of Exchange Property received by a holder of one Share (without consideration of any requirement to pay cash or other consideration in lieu of fractional amounts of any securities) in such Nationalization, Insolvency or Merger Event.  If such Nationalization, Insolvency or Merger Event involves a choice of Exchange Property to be received by holders, such holder shall be deemed to have elected to receive the maximum possible amount of cash.

		Failure to Deliver:	Inapplicable

14

		Other applicable provisions:	If Share Termination Alternative is applicable, the provisions of Sections 9.8, 9.9, 9.11 and 9.12 (as modified above) of the Equity Definitions will be applicable, except that all references in such provisions to "Physically-settled" shall be read as references to "Share Termination Settled" and all references to "Shares" shall be read as references to "Share Termination Delivery Units".  "Share Termination Settled" in relation to the Transaction means that the Share Termination Alternative is applicable to the Transaction.

	
(k)

	
Registration/Private Placement Procedures.  If, in the reasonable opinion of Dealer, following any delivery of Shares or Share Termination Delivery Property to Dealer hereunder, such Shares or Share Termination Delivery Property would be in the hands of Dealer subject to any applicable restrictions with respect to any registration or qualification requirement or prospectus delivery requirement for such Shares or Share Termination Delivery Property pursuant to any applicable federal or state securities law (including, without limitation, any such requirement arising under Section 5 of the Securities Act as a result of such Shares or Share Termination Delivery Property being "restricted securities", as such term is defined in Rule 144 under the Securities Act, or as a result of the sale of such Shares or Share Termination Delivery Property being subject to paragraph (c) of Rule 145 under the Securities Act) (such Shares or Share Termination Delivery Property, "Restricted Shares"), then delivery of such Restricted Shares shall be effected pursuant to either clause (i) or (ii) below at the election of Company, unless Dealer waives the need for registration/private placement procedures set forth in (i) and (ii) below.  Notwithstanding the foregoing, solely in respect of any Daily Number of Warrants exercised or deemed exercised on any Expiration Date, Company shall elect, prior to the first Settlement Date for the first applicable Expiration Date, a Private Placement Settlement or Registration Settlement for all deliveries of Restricted Shares for all such Expiration Dates which election shall be applicable to all remaining Settlement Dates for such Warrants and the procedures in clause (i) or clause (ii) below shall apply for all such delivered Restricted Shares on an aggregate basis commencing after the final Settlement Date for such Warrants.  The Calculation Agent shall make reasonable adjustments to settlement terms and provisions under this Confirmation to reflect a single Private Placement or Registration Settlement for such aggregate Restricted Shares delivered hereunder. For the avoidance of doubt, these adjustments will only be commercially reasonable in nature (such as to consider changes in volatility, expected dividends, stock loan rate or liquidity relevant to the Shares and the ability to maintain a commercially reasonable hedge position in the underlying shares) and will not impact the Company's unilateral right to settle in shares.

	
(i)

	
If Company elects to settle the Transaction pursuant to this clause (i) (a "Private Placement Settlement"), then delivery of Restricted Shares by Company shall be effected in customary private placement procedures with respect to such Restricted Shares reasonably acceptable to Dealer; provided that Company may not elect a Private Placement Settlement if, on the date of its election, it has taken, or caused to be taken, any action that would make unavailable either the exemption pursuant to Section 4(2) of the Securities Act for the sale by Company to Dealer (or any affiliate designated by Dealer) of the Restricted Shares or the exemption pursuant to Section 4(1) or Section 4(3) of the Securities Act for resales of the Restricted Shares by Dealer (or any such affiliate of Dealer).  The Private Placement Settlement of such Restricted Shares shall include customary representations, covenants, blue sky and other governmental filings and/or registrations, indemnities to Dealer, due diligence rights (for Dealer or any designated buyer of the Restricted Shares by Dealer), opinions and certificates, and such other documentation as is customary for private placement agreements of similar size, all reasonably acceptable to Dealer.  In the case of a Private Placement Settlement, Calculation Agent shall determine the appropriate discount to the Share Termination Unit Price (in the case of settlement of Share Termination Delivery Units pursuant to Section 9(j) above) or any Settlement Price (in the case of settlement of Shares pursuant to Section 2 above) applicable to such Restricted Shares in a commercially reasonable manner and appropriately adjust the number of such Restricted Shares to be delivered to Dealer hereunder, which discount shall only take into account the illiquidity resulting from the fact that the Restricted Shares will not be registered for resale and any commercially reasonable fees and expenses of Dealer (and any affiliate thereof) in connection with such resale (with such discount not duplicating any adjustment made by the Calculation Agent as part of determining the Share Termination Unit Price).  Notwithstanding anything to the contrary in the Agreement or this Confirmation, the date of delivery of such Restricted Shares shall be the Exchange Business Day following notice by Dealer to Company, of such applicable discount and the number of Restricted Shares to be delivered pursuant to this clause (i).  For the avoidance of doubt, delivery of Restricted Shares shall be due as set forth in the previous sentence and not be due on the Share Termination Payment Date (in the case of settlement of Share Termination Delivery Units pursuant to Section 9(j) above) or on the Settlement Date for such Restricted Shares (in the case of settlement in Shares pursuant to Section 2 above).

15

	
(ii)

	
If Company elects to settle the Transaction pursuant to this clause (ii) (a "Registration Settlement"), then Company shall promptly (but in any event no later than the beginning of the Resale Period) file and use its reasonable best efforts to make effective under the Securities Act a registration statement or supplement or amend an outstanding registration statement in form and substance reasonably satisfactory to Dealer, to cover the resale of such Restricted Shares in accordance with customary resale registration procedures, including covenants, conditions, representations, underwriting discounts (if applicable), commissions (if applicable), indemnities due diligence rights, opinions and certificates, and such other documentation as is customary for equity resale underwriting agreements of similar size, all reasonably acceptable to Dealer.  If Dealer, in its sole reasonable discretion, is not satisfied with such procedures and documentation Private Placement Settlement shall apply.  If Dealer is satisfied with such procedures and documentation, it shall sell the Restricted Shares pursuant to such registration statement during a period (the "Resale Period") commencing on the Exchange Business Day following delivery of such Restricted Shares (which, for the avoidance of doubt, shall be (x) the Share Termination Payment Date in case of settlement in Share Termination Delivery Units pursuant to Section 9(j) above or (y) the Settlement Date in respect of the final Expiration Date for all Daily Number of Warrants) and ending on the earliest of (i) the Exchange Business Day on which Dealer completes the sale of all Restricted Shares in a commercially reasonable manner or, in the case of settlement of Share Termination Delivery Units, a sufficient number of Restricted Shares so that the realized net proceeds of such sales equals or exceeds the Payment Obligation (as defined above), (ii) the date upon which all Restricted Shares have been sold or transferred pursuant to Rule 144 (or similar provisions then in force) or Rule 145(d)(2) (or any similar provision then in force) under the Securities Act and (iii) the date upon which all Restricted Shares may be sold or transferred by a non-affiliate pursuant to Rule 144 (or any similar provision then in force) or Rule 145(d)(2) (or any similar provision then in force) under the Securities Act.  If the Payment Obligation exceeds the realized net proceeds from such resale, Company shall transfer to Dealer by the open of the regular trading session on the Exchange on the Exchange Trading Day immediately following such resale the amount of such excess (the "Additional Amount") in cash or in a number of Shares ("Make-whole Shares") in an amount that, based on the Settlement Price on such day (as if such day was the "Valuation Date" for purposes of computing such Settlement Price), has a dollar value equal to the Additional Amount.  The Resale Period shall continue to enable the sale of the Make-whole Shares.  If Company elects to pay the Additional Amount in Shares, the requirements and provisions for Registration Settlement shall apply.  This provision shall be applied successively until the Additional Amount is equal to zero.  In no event shall Company deliver a number of Restricted Shares greater than the Maximum Number of Shares.

	
(iii)

	
Without limiting the generality of the foregoing, Company agrees that (A) any Restricted Shares delivered to Dealer may be transferred by and among Dealer and its affiliates and Company shall effect such transfer without any further action by Dealer and (B) after the period of 6 months from the Trade Date (or 1 year from the Trade Date if, at such time, informational requirements of Rule 144(c) under the Securities Act are not satisfied with respect to Company) has elapsed in respect of any Restricted Shares delivered to Dealer, Company shall promptly remove, or cause the transfer agent for such Restricted Shares to remove, any legends referring to any such restrictions or requirements from such Restricted Shares upon request by Dealer (or such affiliate of Dealer) to Company or such transfer agent, without any requirement for the delivery of any certificate, consent, agreement, opinion of counsel, notice or any other document, any transfer tax stamps or payment of any other amount or any other action by Dealer (or such affiliate of Dealer). Notwithstanding anything to the contrary herein, to the extent the provisions of Rule 144 of the Securities Act or any successor rule are amended, or the applicable interpretation thereof by the Securities and Exchange Commission or any court change after the Trade Date, the agreements of Company herein shall be deemed modified to the extent necessary, in the opinion of outside counsel of Company, to comply with Rule 144 of the Securities Act, as in effect at the time of delivery of the relevant Shares or Share Termination Delivery Property.

16

	
(iv)

	
If the Private Placement Settlement or the Registration Settlement shall not be effected as set forth in clauses (i) or (ii), as applicable, then failure to effect such Private Placement Settlement or such Registration Settlement shall constitute an Event of Default with respect to which Company shall be the Defaulting Party.

	
(l)

	
Limit on Beneficial Ownership.  Notwithstanding any other provisions hereof, Dealer may not exercise any Warrant hereunder or be entitled to take delivery of any Shares deliverable hereunder, and Automatic Exercise shall not apply with respect to any Warrant hereunder, to the extent (but only to the extent) that, after such receipt of any Shares upon the exercise of such Warrant or otherwise hereunder, (i) the Section 16 Percentage would exceed 7.5%, or (ii) the Share Amount would exceed the Applicable Share Limit.  Any purported delivery hereunder shall be void and have no effect to the extent (but only to the extent) that, after such delivery, (i) the Section 16 Percentage would exceed 7.5%, or (ii) the Share Amount would exceed the Applicable Share Limit. If any delivery owed to Dealer hereunder is not made, in whole or in part, as a result of this provision, Company's obligation to make such delivery shall not be extinguished and Company shall make such delivery as promptly as practicable after, but in no event later than one Business Day after, Dealer gives notice to Company that, after such delivery, (i) the Section 16 Percentage would not exceed 7.5%, and (ii) the Share Amount would not exceed the Applicable Share Limit.

	
(m)

	
Share Deliveries. Notwithstanding anything to the contrary herein, Company agrees that any delivery of Shares or Share Termination Delivery Property shall be effected by book-entry transfer through the facilities of DTC, or any successor depositary, if at the time of delivery, such class of Shares or class of Share Termination Delivery Property is in book-entry form at DTC or such successor depositary.

	
(n)

	
Waiver of Jury Trial.   Each party waives, to the fullest extent permitted by applicable law, any right it may have to a trial by jury in respect of any suit, action or proceeding relating to the Transaction.  Each party (i) certifies that no representative, agent or attorney of the other party has represented, expressly or otherwise, that such other party would not, in the event of such a suit, action or proceeding, seek to enforce the foregoing waiver and (ii) acknowledges that it and the other party have been induced to enter into the Transaction, as applicable, by, among other things, the mutual waivers and certifications provided herein.

	
(o)

	
Tax Disclosure.  Effective from the date of commencement of discussions concerning the Transaction, Company and each of its employees, representatives, or other agents may disclose to any and all persons, without limitation of any kind, the tax treatment and tax structure of the Transaction and all materials of any kind (including opinions or other tax analyses) that are provided to Company relating to such tax treatment and tax structure.

	
(p)

	
Maximum Share Delivery.

	
(i)

	
Notwithstanding any other provision of this Confirmation, the Agreement or the Equity Definitions, in no event will Company at any time be required to deliver a number of Shares greater than two times the Number of Shares (the "Maximum Number of Shares") to Dealer in connection with the Transaction, subject to the provisions regarding Deficit Shares in Section 9(p)(ii).

	
(ii)

	
In the event Company shall not have delivered to Dealer the full number of Shares or Restricted Shares otherwise deliverable by Company to Dealer pursuant to the terms of the Transaction because Company has insufficient authorized but unissued Shares (such deficit, the "Deficit Shares"), Company shall be continually obligated to deliver, from time to time, Shares or Restricted Shares, as the case may be, to Dealer until the full number of Deficit Shares have been delivered pursuant to this Section 9(p)(ii), when, and to the extent that, (A) Shares are repurchased, acquired or otherwise received by Company or any of its subsidiaries after the Trade Date (whether or not in exchange for cash, fair value or any other consideration), (B) authorized and unissued Shares previously reserved for issuance in respect of other transactions become no longer so reserved or (C) Company additionally authorizes any unissued Shares that are not reserved for other transactions; provided that in no event shall Company deliver any Shares or Restricted Shares to Dealer pursuant to this Section 9(p)(ii) to the extent that such delivery would cause the aggregate number of Shares and Restricted Shares delivered to Dealer to exceed the Maximum Number of Shares.  Company shall immediately notify Dealer of the occurrence of any of the foregoing events (including the number of Shares subject to clause (A), (B) or (C) and the corresponding number of Shares or Restricted Shares, as the case may be, to be delivered) and promptly deliver such Shares or Restricted Shares, as the case may be, thereafter.

17

	
(iii)

	
Notwithstanding anything to the contrary in the Agreement, this Confirmation or the Equity Definitions, the Maximum Number of Shares shall not be adjusted on account of any event that (x) constitutes a Potential Adjustment Event solely on account of Section 11.2(e)(vii) of the Equity Definitions and (y) is not an event within Company's control.

	
(q)

	
Right to Extend.  Dealer may postpone or add, in whole or in part, any Expiration Date or any other date of valuation or delivery with respect to some or all of the relevant Warrants (in which event the Calculation Agent shall make appropriate adjustments to the Daily Number of Warrants with respect to one or more Expiration Dates) if Dealer determines, in its commercially reasonable judgment, that such extension is reasonably necessary or appropriate to preserve Dealer's commercially reasonable hedging or hedge unwind activity hereunder in light of existing liquidity conditions or to enable Dealer to effect purchases of Shares in connection with its commercially reasonable hedging, hedge unwind or settlement activity hereunder in a manner that would, if Dealer were Issuer or an affiliated purchaser of Issuer, be in compliance with applicable legal, regulatory or self-regulatory requirements, or with related policies and procedures applicable to Dealer.

	
(r)

	
Status of Claims in Bankruptcy.  Dealer acknowledges and agrees that this Confirmation is not intended to convey to Dealer rights against Company with respect to the Transaction that are senior to the claims of common stockholders of Company in any United States bankruptcy proceedings of Company; provided that nothing herein shall limit or shall be deemed to limit Dealer's right to pursue remedies in the event of a breach by Company of its obligations and agreements with respect to the Transaction; provided, further, that nothing herein shall limit or shall be deemed to limit Dealer's rights in respect of any transactions other than the Transaction.

	
(s)

	
Securities Contract; Swap Agreement.  The parties hereto intend for (i) the Transaction to be a "securities contract" and a "swap agreement" as defined in the Bankruptcy Code (Title 11 of the United States Code) (the "Bankruptcy Code"), and the parties hereto to be entitled to the protections afforded by, among other Sections, Sections 362(b)(6), 362(b)(17), 546(e), 546(g), 555 and 560 of the Bankruptcy Code, (ii) a party's right to liquidate the Transaction and to exercise any other remedies upon the occurrence of any Event of Default under the Agreement with respect to the other party to constitute a "contractual right" as described in the Bankruptcy Code, and (iii) each payment and delivery of cash, securities or other property hereunder to constitute a "margin payment" or "settlement payment" and a "transfer" as defined in the Bankruptcy Code.

	
(t)

	
Wall Street Transparency and Accountability Act.  In connection with Section 739 of the Wall Street Transparency and Accountability Act of 2010 ("WSTAA"), the parties hereby agree that neither the enactment of WSTAA or any regulation under the WSTAA, nor any requirement under WSTAA or an amendment made by WSTAA, shall limit or otherwise impair either party's otherwise applicable rights to terminate, renegotiate, modify, amend or supplement this Confirmation or the Agreement, as applicable, arising from a termination event, force majeure, illegality, increased costs, regulatory change or similar event under this Confirmation, the Equity Definitions incorporated herein, or the Agreement (including, but not limited to, rights arising from Change in Law, Hedging Disruption, Increased Cost of Hedging, an Excess Ownership Position, or Illegality (as defined in the Agreement)).

	
(u)

	
Agreements and Acknowledgements Regarding Hedging. Company understands, acknowledges and agrees that: (A) at any time on and prior to the last Expiration Date, Dealer and its affiliates may buy or sell Shares or other securities or buy or sell options or futures contracts or enter into swaps or other derivative securities in order to adjust its hedge position with respect to the Transaction;  (B) Dealer and its affiliates also may be active in the market for Shares other than in connection with hedging activities in relation to the Transaction; (C) Dealer shall make its own determination as to whether, when or in what manner any hedging or market activities in securities of Issuer shall be conducted and shall do so in a manner that it deems appropriate to hedge its price and market risk with respect to the Settlement Prices; and (D) any market activities of Dealer and its affiliates with respect to Shares may affect the market price and volatility of Shares, as well as the Settlement Prices, each in a manner that may be adverse to Company.

18

	
(v)

	
Early Unwind. In the event the sale of the "Underwritten Securities" (as defined in the Purchase Agreement) is not consummated with the Initial Purchaser for any reason, or Company fails to deliver to Dealer opinions of counsel as required pursuant to Section 9(a), in each case by 5:00 p.m. (New York City time) on the Premium Payment Date, or such later date as agreed upon by the parties (the Premium Payment Date or such later date the "Early Unwind Date"), the Transaction shall automatically terminate (the "Early Unwind"), on the Early Unwind Date and (i) the Transaction and all of the respective rights and obligations of Dealer and Company under the Transaction shall be cancelled and terminated and (ii) each party shall be released and discharged by the other party from and agrees not to make any claim against the other party with respect to any obligations or liabilities of the other party arising out of and to be performed in connection with the Transaction either prior to or after the Early Unwind Date.  Each of Dealer and Company represents and acknowledges to the other that upon an Early Unwind, all obligations with respect to the Transaction shall be deemed fully and finally discharged.

	
(w)

	
Payment by Dealer. In the event that (i) an Early Termination Date occurs or is designated with respect to the Transaction as a result of a Termination Event or an Event of Default (other than an Event of Default arising under Section 5(a)(ii) or 5(a)(iv) of the Agreement) and, as a result, Dealer owes to Company an amount calculated under Section 6(e) of the Agreement, or (ii) Dealer owes to Company, pursuant to Section 12.7 or Section 12.9 of the Equity Definitions, an amount calculated under Section 12.8 of the Equity Definitions, such amount shall be deemed to be zero.

	
(x)

	
Adjustments.  For the avoidance of doubt, whenever the Calculation Agent or Determining Party is called upon to make an adjustment pursuant to the terms of this Confirmation or the Equity Definitions to take into account the effect of an event, the Calculation Agent or Determining Party shall make such adjustment by reference to the effect of such event on the Hedging Party, assuming that the Hedging Party maintains a commercially reasonable hedge position.

	
(y)

	
Delivery or Receipt of Cash.  For the avoidance of doubt, other than receipt of the Premium by Company, nothing in this Confirmation shall be interpreted as requiring Company to cash settle the Transaction, except in circumstances where cash settlement is within Company's control (including, without limitation, where Company elects to deliver or receive cash, or where Company has made Private Placement Settlement unavailable due to the occurrence of events within its control) or in those circumstances in which holders of Shares would also receive cash.

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Company hereby agrees (a) to check this Confirmation carefully and immediately upon receipt so that errors or discrepancies can be promptly identified and rectified and (b) to confirm that the foregoing (in the exact form provided by Dealer) correctly sets forth the terms of the agreement between Dealer and Company with respect to the Transaction, by manually signing this Confirmation or this page hereof as evidence of agreement to such terms and providing the other information requested herein and immediately returning an executed copy to Dealer.

Yours faithfully,

MORGAN STANLEY & CO. INTERNATIONAL PLC

		By:	/s/ Joseba Picaza

Name: Joseba Picaza

Title:   Executive Director

MORGAN STANLEY & CO. LLC

		By:	/s/ Serkan Savasoglu

Name: Serkan Savasoglu

Title:   Managing Director

 

	
 

[Signature Page to Base Warrant Confirmation – Morgan Stanley & Co. International plc]

Confirmed and Acknowledged as of the date first above written:

HEALTHWAYS, INC.

	By:	 /s/ Alfred Lumsdaine

Name: Alfred Lumsdaine

Title:   Chief Financial Officer

 

 

 

 

 

	
 

[Signature Page to Base Warrant Confirmation – Morgan Stanley & Co. International plc]2013 Q3 EX 10-107

Exhibit 10.107

MTV ASSET PURCHASE AND SALE AGREEMENT
BY AND AMONG
INTEL CORPORATION,
MICRON TECHNOLOGY, INC.
AND
IM FLASH TECHNOLOGIES, LLC
APRIL 6, 2012

TABLE OF CONTENTS
	
		
	ARTICLE I PURCHASE AND SALE; ASSUMED LIABILITIES; CLOSING
	3

	ARTICLE II REPRESENTATIONS AND WARRANTIES OF IMFT
	10

	ARTICLE III REPRESENTATIONS AND WARRANTIES OF MICRON
	12

	ARTICLE IV REPRESENTATIONS AND WARRANTIES OF INTEL
	13

	ARTICLE V CONDITION TO CLOSING
	14

	ARTICLE VI COVENANTS
	14

	ARTICLE VII MISCELLANEOUS
	16

	ARTICLE VIII DEFINITIONS
	20

 

MTV ASSET PURCHASE AND SALE AGREEMENT
This MTV ASSET PURCHASE AND SALE AGREEMENT (together with the Schedules attached hereto, this “Agreement”), dated as of April 6, 2012 (the “Effective Date”), is entered into by and among IM Flash Technologies, LLC, a Delaware limited liability company (“IMFT”), Micron Technology, Inc., a Delaware corporation (“Micron”), and Intel Corporation, a Delaware corporation (“Intel”).  IMFT, Micron and Intel are each referred to herein individually as a “Party,” and collectively as the “Parties.”  Unless otherwise defined herein, capitalized terms used in this Agreement shall have the respective meanings ascribed to such terms in Section 8.1 of this Agreement.
WHEREAS, Micron and Intel are parties to that certain Amended and Restated Limited Liability Company Operating Agreement of IMFT, dated as of February 27, 2007 (as amended, the “IMFT Agreement”);
WHEREAS, IMFT leases from Micron those certain premises located in Manassas, Virginia (the “MTV Leased Premises”), in accordance with the terms of, and as more particularly described in, that certain MTV Lease Agreement, dated as of January 6, 2006 (the “MTV Lease Agreement”); 
WHEREAS, IMFT is engaged in the manufacture of NAND Flash Memory Products (as defined in the IMFT Agreement) at the MTV Leased Premises (the “MTV Fab Operations”); 
WHEREAS, in connection with the MTV Fab Operations, Micron provides IMFT with manufacturing services at the MTV Leased Premises pursuant to that certain Manufacturing Services Agreement, dated as of January 6, 2006 (the “Manufacturing Services Agreement”);
WHEREAS, subject to the terms and conditions set forth in this Agreement, IMFT desires to sell to Micron, and Micron desires to purchase from IMFT, the Micron Purchased Assets (as defined below); and
WHEREAS, the consummation of the transactions contemplated by this Agreement shall occur contemporaneously with the Closing (as therein defined) of the transactions contemplated by, and is subject to, that certain 2012 Master Agreement, dated as of February 27, 2012 (the “2012 Master Agreement”). 
NOW, THEREFORE, in consideration of the foregoing and of the mutual representations, warranties and covenants contained in this Agreement as well as other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties to this Agreement hereby agree as follows:
ARTICLE I
PURCHASE AND SALE; ASSUMED LIABILITIES; CLOSING
1.1    Micron Purchased Assets.  Subject to the terms and conditions of this Agreement, at the Closing, IMFT will sell, transfer, convey, assign and deliver to Micron, and Micron will purchase and receive from IMFT, all of IMFT's rights, title and interest in and to the following

assets (collectively, the “Micron Purchased Assets”), free and clear of all Liens, except for any Permitted Liens:
(a)    Machinery, equipment, furniture, furnishings, vehicles and other similar tangible personal property (i) owned by IMFT, (ii) used or held for use exclusively for the MTV Fab Operations and (iii) located at or in transit to the Manassas, Virginia, facility of the MTV Fab Operations (“Machinery and Equipment”).  Such Machinery and Equipment shall include “Assets Under Construction” on the books of IMFT to the extent such assets are intended for use exclusively in the MTV Fab Operations and are to be located at the Manassas, Virginia, facility of the MTV Fab Operations;
(b)    To the extent transferrable to Micron, each contract, agreement, option, lease, license, sale and purchase order, commitment and other instrument of any kind, whether written or oral, to which IMFT is a party or by which IMFT is bound that relates exclusively to the MTV Fab Operations (“Transferred Contracts”).  For the avoidance of doubt, such Transferred Contracts shall include purchase orders for capital and non-capital procurement intended exclusively for the MTV Fab Operations and any credit for prepayments under such purchase orders;
(c)    To the extent transferrable to Micron, all permits, licenses, franchises, approvals, certificates, consents, waivers, concessions, exemptions, orders, registrations, notices or other authorizations of any Governmental Entity necessary for Micron to own, lease and operate the Micron Purchased Assets and the MTV Fab Operations as currently conducted and that are used or held for use exclusively in the MTV Fab Operations (“Transferred Business Permits”);
(d)    Raw materials (if any such raw materials are then owned by IMFT, rather than by Micron), work in process, finished goods (but excluding all Back-End Products), supplies, packaging materials, parts, spare parts and other inventories owned by IMFT and used or held for use exclusively for the MTV Fab Operations and located at the MTV Leased Premises (“Transferred Inventory”);
(e)    Books and records, including production documents, of IMFT that relate exclusively to the MTV Fab Operations and that are necessary for the operation of the Micron Purchased Assets after the Closing (“Transferred Books and Records”), provided that IMFT may keep copies of any and all Transferred Books and Records following the Closing; and
(f)    All other tangible personal property owned by IMFT and located at the MTV Fab Operations.
1.2    Excluded Assets.  Notwithstanding any other provision in this Agreement to the contrary, all of IMFT's rights, title and interest in and to any of its assets other than the Micron Purchased Assets will remain the property of IMFT after the Closing (the “Excluded Assets”), including the assets listed below:
(a)    Back-End Products existing as of the Closing, which will be transferred to Intel at the Closing pursuant to the IMFT Back-End Products Purchase Agreement; and

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(b)    The assets, properties or rights listed on Schedule 1.2(b) to the MTV APSA Disclosure Letter.
1.3    Assumed Liabilities.  Subject to Section 1.4, Micron will assume from IMFT and shall, from and after the Closing Date, timely pay, discharge, perform or otherwise satisfy the following liabilities and obligations of IMFT (the “Assumed Liabilities”):
(a)    All Liabilities under or arising out of the Transferred Contracts, whether prior to, on or following the Closing Date;
(b)    All Liabilities under the Transferred Business Permits, whether prior to, on or following the Closing Date;
(c)    All Liabilities pursuant to any Environmental Law arising from or relating to any action, event, circumstance or condition occurring or existing on, prior to or following the Closing Date, including any release of any Hazardous Substances or any violation of any Environmental Laws with respect to the MTV Leased Premises, the MTV Fab Operations, or the Micron Purchased Assets.
(d)    All Liabilities related to any present or former personnel employed in the MTV Fab Operations (including MTV Employees), including any Liabilities arising out of or relating to employment agreements, employee benefit plans, the Manufacturing Services Agreement or any other secondment arrangements, whether such Liabilities arise prior to, on or following the Closing;
(e)    Any and all product liability, warranty, refund and similar Liabilities or claims arising with respect to any products manufactured at the MTV Fab Operations on or following the Closing Date;
(f)    Any liability or obligation for Taxes related to the Micron Purchased Assets and any Taxes, or obligations to reimburse Taxes, allocated to Micron pursuant to Section 1.8 and Section 1.9(b); and
(g)    All other Liabilities accruing, arising out of or relating to the conduct or operation of the MTV Fab Operations (including any accounts payable), the real property and facilities that are subject to the MTV Lease Agreement or the ownership or use of the Micron Purchased Assets, whether prior to, on or following the Closing Date.
1.4    Retained Liabilities.  Notwithstanding any provision in this Agreement to the contrary, Micron is not assuming, and IMFT shall pay, discharge, perform or otherwise satisfy, all liabilities of IMFT other than the Assumed Liabilities, whether known or unknown, fixed or contingent, and whether arising or accruing before or after the Closing Date, including any product liability, warranty, refund and similar Liabilities of IMFT or claims arising against IMFT with respect to any products manufactured at the MTV Fab Operations prior to the Closing Date (collectively, the “Retained Liabilities”). 

5

1.5    Purchase Price.  In consideration for the purchase of the Micron Purchased Assets contemplated by Section 1.1, Micron will, at the Closing, pay and deliver to IMFT cash in the aggregate amount of $283,615,121, which amount represents the aggregate MTV Net Book Value on the Closing Date as estimated pursuant to Section 2.7(B) of the 2012 Master Agreement (the “Estimated Purchase Price”), and assume the Assumed Liabilities.
1.6    Adjustment of Purchase Price.
(a)    Post-Closing Statement.  As soon as available, but in no event later than 90 days after the Closing Date, IMFT shall prepare and deliver to Micron a written notice setting forth the MTV Net Book Value (the “Purchase Price”) and the Post-Closing Adjustment, if any, together with reasonably detailed supporting information (the “Post-Closing Statement”).
(b)    Objections.  Unless Micron notifies IMFT in writing within 30 days following delivery of such Post-Closing Statement of any objection to the computation of the Purchase Price or Post-Closing Adjustment, if any, set forth therein (a “Notice of Objection”), the Post-Closing Statement shall become final and binding 30 days after IMFT's delivery of the Post-Closing Statement.  Following delivery of the Post-Closing Statement, IMFT shall permit Micron and its representatives to review the working papers of IMFT relating to the Post-Closing Statement and, at Micron's written request, shall provide Micron and its representatives access to or copies of IMFT's books and records reasonably requested for purposes of Micron's review of the Post-Closing Statement and preparation of any Notice of Objection.  Any Notice of Objection shall specify the basis for the objections set forth therein in reasonable detail.  If Micron provides a Notice of Objection within such 30-day period, IMFT and Micron shall, during the 30-day period following receipt of the Notice of Objection, attempt in good faith to resolve any objections.  During such 30-day period, IMFT and its representatives shall be permitted to review the working papers of Micron and its accountants relating to the Notice of Objection and the basis therefor.  
(c)    Resolution of Disputes.  If Micron and IMFT are unable to resolve all objections within such 30-day period, the matters remaining in dispute shall be submitted to the Independent Accounting Firm.  Each of Micron and IMFT shall submit to the Independent Accounting Firm their written briefs detailing their views as to the correct nature and amount of each item remaining in dispute, and the Independent Accounting Firm shall be authorized to resolve the matters remaining in dispute between the parties in accordance with the provisions of this Section 1.6(c) within the range of the difference between the positions with respect thereto of Micron and IMFT.  Micron and IMFT shall instruct, and shall use their commercially reasonably efforts to cause, the Independent Accounting Firm to render its reasoned written decision as to each such disputed item as promptly as practicable but in no event later than 60 days after the dispute is submitted.  The Independent Accounting Firm shall make a written determination as to each such disputed item, and its written decision shall be accompanied by a certificate of the Independent Accounting Firm that it reached such determination in accordance with the provisions of this Section 1.6(c).  The resolution of disputed items by the Independent Accounting Firm shall be final and binding, and the determination of the Independent Accounting Firm shall constitute an arbitral award that is final, binding and non-appealable and upon which a judgment may be entered by a court having jurisdiction over such dispute.  The fees and expenses of the Independent Accounting Firm shall be borne by Micron and Intel in inverse proportion as 

6

Micron and IMFT, respectively, may prevail on the matters resolved by the Independent Accounting Firm, which proportionate allocation shall be calculated on an aggregate basis based on the relative dollar values of the amounts in dispute and shall be determined by the Independent Accounting Firm at the time the determination of such firm is rendered on the merits of the matters submitted.  The fees and disbursements of each party and their representatives incurred in connection with their preparation or review of the Post-Closing Statement, any Notice of Objection and any dispute resolution, as applicable, shall be borne by such party.  After the final determination of the Purchase Price and the Post-Closing Adjustment, if any, no party shall have any further right to make any claims against another with respect to any element of the Purchase Price or the Post-Closing Adjustment.  Such final determination of the Purchase Price is referred to herein as the “Final Purchase Price.”
(d)    Post-Closing Payments.  If the Post-Closing Adjustment, as finally determined under Section 1.6(c), as applicable, is a positive number, Micron shall pay the amount thereof to IMFT.  If the Post-Closing Adjustment, as so finally determined, is a negative number, IMFT shall pay the absolute value thereof to Micron.  Any payment under this Section 1.6(d) shall be made within two business days of establishment of the Final Purchase Price.
1.7    Closing.
(a)    The closing of the transactions contemplated by this Agreement will occur contemporaneously with the Closing under the 2012 Master Agreement, and is conditioned on the satisfaction or proper waiver of the conditions set forth in Article V, except as otherwise mutually agreed by the Parties.  
(b)    IMFT's Closing Deliveries to Micron.  Subject to the terms and conditions of this Agreement, at the Closing, IMFT will deliver, or cause to be delivered, the following to Micron:
(i)    a duly executed bill of sale, in substantially the form attached as Exhibit A to the MTV APSA Exhibit Letter (the “Bill of Sale”); 
(ii)    a duly executed assignment and assumption agreement, in substantially the form attached as Exhibit B to the MTV APSA Exhibit Letter (the “Assignment”);
(iii)    a duly executed termination of the MTV Lease Agreement, in substantially the form attached as Exhibit C to the MTV APSA Exhibit Letter (the “Lease Termination”);
(iv)    a duly executed termination of deed of lease agreement, in substantially the form attached as Exhibit D to the MTV APSA Exhibit Letter (the “Deed of Lease Termination”);

7

(v)    a duly executed termination of the Manufacturing Services Agreement, in substantially the form attached as Exhibit E to the MTV APSA Exhibit Letter (the “Manufacturing Services Termination”);
(vi)    a duly executed certification of non-foreign status described in Treasury Regulation § 1.1445-2(b)(2) to the effect that IMFT is not a foreign person for purposes of Section 1445 of the Internal Revenue Code of 1986, as amended, in substantially the form attached as Exhibit F to the MTV APSA Exhibit Letter;
(vii)    each of the third party consents or waivers, as applicable, set forth on Schedule 2.5 to the MTV APSA Disclosure Letter and obtained by IMFT prior to the Closing; and
(viii)    all other documents, certificates, instruments and writings required to be delivered at or prior to the Closing pursuant to this Agreement or reasonably requested by Micron and obtained by IMFT prior to the Closing.
(c)    Micron's Closing Deliveries.  Subject to the terms and conditions of this Agreement, at the Closing, Micron will deliver the following to IMFT:
(i)    the Estimated Purchase Price by wire transfer of immediately available funds;
(ii)    a duly executed counterpart of the Bill of Sale; 
(iii)    a duly executed counterpart of the Assignment;
(iv)    a duly executed counterpart of the Lease Termination;
(v)    a duly executed counterpart of the Deed of Lease Termination;
(vi)    a duly executed counterpart of the Manufacturing Services Termination;
(vii)    each of the third party consents or waivers, as applicable, set forth on Schedule 3.4 to the MTV APSA Disclosure Letter; and
(viii)    all other documents, certificates, instruments and writings required to be delivered at or prior to the Closing pursuant to this Agreement or reasonably requested by IMFT.
1.8    Transfer Taxes.  Micron shall timely pay any and all of the costs and expenses of all transfer, documentary, sales, use, stamp, registration, value added and other similar Taxes and governmental filing and permit fees that are incurred by any of the Parties in connection with the transfer or conveyance of the Micron Purchased Assets and the assumption of the Assumed Liabilities as contemplated by this Agreement, together with any penalties, interest or additions to Tax incurred in connection therewith.  Each Party shall cooperate in a good faith, commercially reasonable manner as reasonably requested by another Party and at Micron's sole cost to minimize any such Taxes and shall provide information reasonably requested by any other Party to allow 

8

it to file any Tax returns related to such Taxes or to meet any obligations imposed by any Tax Authority.
1.9    Tax Matters.
(a)    The Parties agree that the sale of the Micron Purchased Assets described in Sections 1.1 through 1.7 shall be treated as a taxable sale by IMFT of the Micron Purchased Assets for applicable income Tax purposes.  No later than 10 days after the determination of the Final Purchase Price, Micron shall prepare and deliver to IMFT for IMFT's review and approval, a written statement (the “Asset Acquisition Statement”) allocating the Final Purchase Price (and any assumed liabilities as determined for U.S. federal income Tax purposes) among the Micron Purchased Assets.  Within 10 days of delivery of the Asset Acquisition Statement, IMFT shall notify Micron if IMFT disagrees with any portion of the Asset Acquisition Statement.  If IMFT fails to notify Micron of any disagreement with the Asset Acquisition Statement within such period (or notifies Micron that it agrees with the Asset Acquisition Statement), Micron and IMFT shall (and Micron shall cause its controlled affiliates to) file all Tax returns and information reports in a manner consistent with such agreed allocation and shall take no position inconsistent therewith.  In the event that IMFT does notify Micron of a disagreement within such 10-day period, Micron and IMFT shall negotiate in good faith to reach agreement.  In the event that the parties cannot reach an agreement on the Asset Acquisition Statement within 30 days after the end of such 10-day period, Micron and IMFT shall submit the disputed issues for resolution to the Independent Accounting Firm, which shall, within 30 days after submission, report to the parties hereto its determination on such disputed allocations.  The Asset Acquisition Statement as determined by the Independent Accounting Firm shall be conclusive and binding upon Micron and IMFT, and Micron, IMFT and their respective controlled affiliates shall file all Tax returns and information reports in a manner consistent with such determination.  Each of Micron and Intel shall bear all fees and costs of the Independent Accounting Firm in connection with a dispute concerning the Asset Acquisition Statement in inverse proportion as Micron and IMFT, respectively, may prevail on the matters resolved by the Independent Accounting Firm, which proportionate allocation shall be calculated on an aggregate basis based on the relative dollar values of the amounts in dispute (i.e., taking only disputed amounts into account) and shall be determined by the Independent Accounting Firm at the time the determination of such firm is rendered on the merits of the matters submitted. 
(b)    Any ad valorem Taxes with respect to the Micron Purchased Assets that are attributable to the tax period including the Closing will be prorated as of the Closing Date, except to the extent that such Taxes (i) have been or will be taken into account in determining the Price (as defined in the Manufacturing Services Agreement) of Probed Wafers for the purposes of the Manufacturing Services Agreement pursuant to Schedule 6.5 thereof, or (ii) have been taken into account as an asset or liability in determining MTV Net Book Value.  Such Taxes will be prorated upon the basis of the most recent Tax valuation and assessment and payable and apportioned between IMFT and Micron on the basis of the actual number of days before and after the Closing Date in such tax period.  If such valuation pertains to a Tax period other than that in which the Closing occurs, such proration shall be recalculated at such time as actual Tax bills for such period are available and the parties shall cooperate with each other in all respects in connection therewith.

9

1.10    Non-Assignable Assets.  To the extent that any Transferred Contract, Transferred Permit or other asset intended to be assigned pursuant to the terms of Section 1.1 cannot be assigned without the consent, approval or waiver of a third person or entity (including a Governmental Entity), or if such assignment or attempted assignment would constitute a breach thereof or a violation of any law (each, a “Non-Assignable Asset”), then nothing in this Agreement shall constitute an assignment or require the assignment thereof prior to the time at which all consents, approvals and waivers necessary for such assignment have been obtained.  To the extent and for so long as all consents, approvals and waivers required for the assignment of any Non-Assignable Asset have not been obtained by IMFT after the Closing, IMFT shall use commercially reasonable efforts, at Micron's cost, to (a) provide to Micron the financial and business benefits of such Non-Assignable Asset and (b) enforce, at the request of Micron, for the account of Micron, any rights of IMFT arising from any such Non-Assignable Asset (including the right to elect to terminate in accordance with the terms thereof).  Micron will perform any portion of a Non-Assignable Asset the financial and business benefits of which are being provided to Micron in accordance with clause (a) of the preceding sentence to the same extent required of IMFT under the terms of such Non-Assignable Asset (i.e., in the same (or as similar as practicable) manner and time, and with the same quality, so required of IMFT).  Following the Closing, IMFT shall not terminate, modify or amend any Non-Assignable Asset without Micron's prior written consent.  Micron agrees that neither IMFT nor Intel shall have any liability to Micron arising out of or relating to the failure to obtain any such consent that may be required in connection with the transactions contemplated by this Agreement or because of any circumstances resulting therefrom, nor shall any such failure affect the consideration payable to IMFT hereunder.
1.11    Interested Member Transaction.  With respect to IMFT's sale to Micron of the Micron Purchased Assets pursuant to the terms of this Agreement, Micron is an Interested Member (as defined in the IMFT Agreement), and the Parties hereby agree that any actions that are required to be or that may be taken by IMFT in connection with the sale to Micron of the Micron Purchased Assets under this Agreement and the 2012 Master Agreement, including with respect to the Estimated Purchased Price contemplated by Section 1.5, the Post-Closing Adjustment to the Purchase Price described in Section 1.6 (which shall include the determination and delivery of the Post-Closing Statement, the resolution of any disagreement reflected in any Notice of Objection and the submission of any brief by IMFT) or any matters described in Section 1.9, may be taken by Intel on IMFT's behalf and may be taken by IMFT only with the approval of a majority of the Managers of IMFT appointed by Intel.  In acting on IMFT's behalf, Intel shall not take any action in violation of this Agreement.  Each of Micron and Intel shall, or shall cause its appointed managers to, approve the terms of this Agreement.  For the avoidance of doubt, the Parties hereby agree that any agreement by IMFT to any Post-Closing Adjustment to the Purchase Price must be approved by a majority of the Managers of IMFT appointed by Intel, subject to Section 1.6(c).
ARTICLE II
REPRESENTATIONS AND WARRANTIES OF IMFT
IMFT hereby makes the representations and warranties to Micron set forth in this Article II, except and to the extent as may be disclosed in a Schedule to this Agreement.  

10

2.1    Legal Existence and Power.  IMFT is a limited liability company duly organized, validly existing and in good standing under the laws of the State of Delaware.  IMFT has the requisite legal power and authority to carry on its business as now conducted.  IMFT is duly qualified to do business and is in good standing in each jurisdiction in which such qualification is required, except where the failure to be so qualified or in good standing would not be reasonably expected to have a Material Adverse Effect.
2.2    Micron Purchased Assets.  IMFT has good and marketable title to all of the tangible personal property that forms any part of the Micron Purchased Assets.  None of such personal property is subject to any Lien, other than Permitted Liens or Liens that would not reasonably be expected to have a Material Adverse Effect.  For the avoidance of doubt, IMFT does not have title to any tangible personal property related to the MTV Fab Operations that is held or used pursuant to any lease agreements or other similar arrangements.  IMFT does not own and has never owned any real property that forms any part of the Micron Purchased Assets.
2.3    Authorization; Enforceability.  IMFT has the requisite legal power and authority to enter into this Agreement and to perform its obligations hereunder.  The execution and delivery by IMFT of this Agreement and the performance by IMFT of its obligations contemplated hereby have been duly authorized by IMFT and do not violate the terms of the certificate of formation of IMFT or the IMFT Agreement.  This Agreement has been duly executed and delivered by IMFT, and this Agreement constitutes the valid and binding agreement of IMFT, enforceable against IMFT in accordance with its terms, except to the extent that their enforceability may be subject to applicable bankruptcy, insolvency, reorganization, moratorium and similar laws affecting the enforcement of creditors' rights generally.
2.4    Governmental Authorization.  Except as disclosed in Schedule 2.4 to the MTV APSA Disclosure Letter, the execution, delivery and performance by IMFT of this Agreement will not require any action by or in respect of, or filing with, any Governmental Entity (disregarding the terms of Section 1.10 for the purposes of this representation).
2.5    Non-Contravention; Consents.  Except as disclosed in Schedule 2.5 to the MTV APSA Disclosure Letter and disregarding the terms of Section 1.10 for the purposes of this representation, the execution, delivery and performance by IMFT of this Agreement do not (a) violate, in any material respect, any Applicable Law or Order, (b) require any filing with, or permit, consent or approval of, or the giving of any notice to (including under any right of first refusal or similar provision), any Person, (c) result in a violation or breach of, conflict with, constitute (with or without due notice or lapse of time or both) a default under, or give rise to any right of termination, cancellation or acceleration of any charter document of or any right or obligation of IMFT or to a loss of any benefit to which IMFT is entitled under, any agreement or other instrument binding upon IMFT or (d) result in the creation or imposition of any Lien on any asset of IMFT that, in the case of clauses (c) or (d), would reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect.
2.6    Litigation.  Except as disclosed in Schedule 2.6 to the MTV APSA Disclosure Letter, there is no action, suit, arbitration or administrative or other proceeding or investigation pending or, to IMFT's knowledge, threatened, against or affecting IMFT and related to any of the Micron Purchased Assets or Assumed Liabilities that, if determined or resolved adversely to 

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IMFT, would reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect.
2.7    Brokerage.  No finder, broker, investment banker or financial advisor is entitled to any brokerage, finders' or other fees or commissions from any other Person in connection with this Agreement or the negotiation looking toward the consummation of such transactions, based upon arrangements made by or on behalf of IMFT.
ARTICLE III
REPRESENTATIONS AND WARRANTIES OF MICRON
Micron hereby makes the representations and warranties to IMFT set forth in this Article III, except and to the extent as may be disclosed in a Schedule to this Agreement:
3.1    Corporate Existence and Power.  Micron is a corporation duly incorporated, validly existing and in good standing under the laws of the State of Delaware.  Micron has the requisite corporate power and authority to carry on its business as now conducted.  Micron is duly qualified to do business and is in good standing in each jurisdiction in which such qualification is required, except where the failure to be so qualified or in good standing would not reasonably be expected to have a Material Adverse Effect.
3.2    Authorization; Enforceability.  Micron has the requisite corporate power and authority to enter into this Agreement and to perform its obligations hereunder.  The execution and delivery by Micron of this Agreement and the performance by Micron of its obligations contemplated hereby have been duly authorized by Micron and do not violate the terms of the certificate of incorporation or bylaws of Micron.  This Agreement has been duly executed and delivered by Micron, and this Agreement constitutes the valid and binding agreement of Micron, enforceable against Micron in accordance with its terms, except to the extent that their enforceability may be subject to applicable bankruptcy, insolvency, reorganization, moratorium and similar laws affecting the enforcement of creditors' rights generally.
3.3    Governmental Authorization.  Except as disclosed in Schedule 3.3 to the MTV APSA Disclosure Letter, the execution, delivery and performance by Micron of this Agreement will not require any action by or in respect of, or filing with, any Governmental Entity.
3.4    Non-Contravention; Consents.  Except as disclosed in Schedule 3.4 to the MTV APSA Disclosure Letter, the execution, delivery and performance by Micron of this Agreement do not and will not (a) violate, in any material respect, any Applicable Law or Order, (b) require any filing with, or permit, consent or approval of, or the giving of any notice to (including under any right of first refusal or similar provision), any Person (including filings, consents or approvals required under any licenses or leases to which Micron or any of its subsidiaries is a party), (c) result in a violation or breach of, conflict with, constitute (with or without due notice or lapse of time or both) a default under, or give rise to any right of termination, cancellation or acceleration of any charter document of or any right or obligation of Micron or any of its subsidiaries or to a loss of any benefit to which Micron or any of its subsidiaries is entitled under, any agreement or other instrument binding upon Micron or any of its subsidiaries or (d) result in the creation or imposition of any Lien on any asset of Micron or any of its subsidiaries that, in the case of 

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clauses (c) or (d), would reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect.
3.5    Litigation.  Except as disclosed in Schedule 3.5 to the MTV APSA Disclosure Letter or as previously disclosed in Micron's public filings pursuant to the Securities Exchange Act of 1934, as amended, there is no action, suit, arbitration or administrative or other proceeding or investigation pending or, to Micron's knowledge, threatened, against or affecting Micron or its subsidiaries or any of their respective properties that, if determined or resolved adversely to Micron or its subsidiaries, would reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect.
3.6    Brokerage.  No finder, broker, investment banker or financial advisor is entitled to any brokerage, finders' or other fees or commissions from any other Person in connection with this Agreement or the negotiation looking toward the consummation of such transactions, based upon arrangements made by or on behalf of Micron.
ARTICLE IV
REPRESENTATIONS AND WARRANTIES OF INTEL
Intel hereby makes the representations and warranties to IMFT set forth in this Article IV, except and to the extent as may be disclosed in a Schedule to this Agreement:
4.1    Corporate Existence and Power.  Intel is a corporation duly incorporated, validly existing and in good standing under the laws of the State of Delaware.  Intel has the requisite corporate power and authority to carry on its business as now conducted.  Intel is duly qualified to do business and is in good standing in each jurisdiction in which such qualification is required, except where the failure to be so qualified or in good standing would not reasonably be expected to have a Material Adverse Effect.
4.2    Authorization; Enforceability.  Intel has the requisite corporate power and authority to enter into this Agreement and to perform its obligations hereunder.  The execution and delivery by Intel of this Agreement and the performance by Intel of its obligations contemplated hereby have been duly authorized by Intel and do not violate the terms of the certificate of incorporation or bylaws of Intel.  This Agreement has been duly executed and delivered by Intel, and this Agreement constitutes the valid and binding agreement of Intel, enforceable against Intel in accordance with its terms, except to the extent that their enforceability may be subject to applicable bankruptcy, insolvency, reorganization, moratorium and similar laws affecting the enforcement of creditors' rights generally.
4.3    Governmental Authorization.  Except as disclosed in Schedule 4.3 to the MTV APSA Disclosure Letter, the execution, delivery and performance by Intel of this Agreement will not require any action by or in respect of, or filing with, any Governmental Entity.
4.4    Non-Contravention; Consents.  Except as disclosed in Schedule 4.4 to the MTV APSA Disclosure Letter, the execution, delivery and performance by Intel of this Agreement do not and will not (a) violate, in any material respect, any Applicable Law or Order, (b) require any filing with, or permit, consent or approval of, or the giving of any notice to (including under 

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any right of first refusal or similar provision), any Person (including filings, consents or approvals required under any licenses or leases to which Intel or any of its subsidiaries is a party), (c) result in a violation or breach of, conflict with, constitute (with or without due notice or lapse of time or both) a default under, or give rise to any right of termination, cancellation or acceleration of any charter document of or any right or obligation of Intel or any of its subsidiaries or to a loss of any benefit to which Intel or any of its subsidiaries is entitled under, any agreement or other instrument binding upon Intel or any of its subsidiaries or (d) result in the creation or imposition of any Lien on any asset of Intel or any of its subsidiaries that, in the case of clauses (c) or (d), would reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect.
4.5    Litigation.  Except as disclosed in Schedule 4.5 to the MTV APSA Disclosure Letter or as previously disclosed in Intel's public filings pursuant to the Securities Exchange Act of 1934, as amended, there is no action, suit, arbitration or administrative or other proceeding or investigation pending or, to Intel's knowledge, threatened, against or affecting Intel or its subsidiaries or any of their respective properties that, if determined or resolved adversely to Intel or its subsidiaries, would reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect.
4.6    Brokerage.  No finder, broker, investment banker or financial advisor is entitled to any brokerage, finders' or other fees or commissions from any other Person in connection with this Agreement or the negotiation looking toward the consummation of such transactions, based upon arrangements made by or on behalf of Intel.
ARTICLE V
CONDITION TO CLOSING
5.1    Each Party's obligations to effect the transactions contemplated by this Agreement at the Closing are subject to contemporaneous consummation of the Closing under the 2012 Master Agreement.
ARTICLE VI
COVENANTS
6.1    Virginia Grants.  
(a)    From and after the Closing, neither IMFT nor Intel will have any interest in, or right or claim to any allocation of, share of or benefit from the Virginia Grants or any Tax incentive accruing or received after the Closing, including any monies received by Micron, relating to such Virginia Grants after the Closing (the “Post-Closing Benefits”).
(b)    Micron will indemnify, defend and hold harmless Intel and IMFT from and against any and all liabilities, damages, losses, costs and expenses (including Taxes, reasonable attorneys' and consultants' fees and expenses) arising from (i) Intel or IMFT being required to repay or return any benefit of, or otherwise compensate any Governmental Entity with respect to, the Virginia Grants or any Tax incentive relating to such Virginia Grants with respect to the period prior to the Closing, (ii) the revocation by any Governmental Entity of any Virginia Grant or Tax incentive relating to any Virginia Grant, (iii) Intel or IMFT being required 

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to pay any amount to any Governmental Entity with respect to any of the Post-Closing Benefits and (iv) the transfer of the benefits or the burdens of the Virginia Grants or any Tax incentives relating to such Virginia Grants to Micron, and any actions taken to effect such transfer, pursuant to or in contemplation of the transactions in this Agreement, in any case including in the case of clauses (i) through (iv) (A) those that may result from any failure to satisfy any of the conditions of the Virginia Grants or any Tax incentive relating to such Virginia Grants that apply at any time prior to, from or after the Closing, (B) any amounts required to be paid or repaid to a Governmental Entity that would not have been required to be paid or repaid but for such failure, (C) any penalties, interest and additions to Tax relating thereto, (D) any reasonable professional fees incurred by Intel or IMFT in connection with such failure and (E) any Taxes resulting from the receipt or right to receive any payment pursuant to this sentence; provided, however, that in no event shall Intel or IMFT be entitled to indemnification for the loss of the value to Intel or IMFT attributable to the surrender of their rights to the Post-Closing Benefits as described in clause (a) above.
6.2    Bulk Sales Laws.  The Parties agree to waive the applicability of any provisions of any bulk sales laws in any jurisdiction.
6.3    Transaction Reconciliation.  IMFT, with reasonable assistance from Micron, shall prepare and deliver no later than 60 days after the Closing a reconciliation of a summary balance sheet of IMFT in a form similar to that included in the periodic reports prepared and distributed to Intel and Micron, as follows: (a) a balance sheet as of the Closing Date immediately before giving effect to the transaction contemplated by this Agreement; (b) the effect of the transactions on the balances on the summary balance sheet as of the Closing Date immediately before giving effect to the transaction contemplated by this Agreement; and (c) a balance sheet as of immediately after the Closing, which shall reflect and give effect to the transactions on the Closing Date contemplated hereby, including the sale of the Micron Purchased Assets and the assumption of the Assumed Liabilities hereunder.
6.4    Access to Information.
(a)    Micron shall maintain for six years after the Closing Date all of the books and records in its possession pertaining to the MTV Fab Operations and to the Micron Purchased Assets and the Assumed Liabilities before the Closing. 
(b)    For six years after the Closing Date, each Party (the “Possessing Party”) will afford any other Party (the “Receiving Party”), its counsel and its accountants, during normal business hours, reasonable access to information relating to the MTV Fab Operations, the Micron Purchased Assets and the Assumed Liabilities in the Possessing Party's possession and, to the extent reasonably requested, will provide copies and extracts therefrom, all to the extent that such access may be reasonably required by the Receiving Party in connection with (i) the preparation of Tax returns, (ii) the preparation for any audit by any taxing authority or the prosecution or defense of any claim or proceeding relating to any Tax return, (iii) compliance with the requirements of any Governmental Entity or (iv) the resolution of claims made by a third party against or incurred by a Party pertaining to the MTV Fab Operations, the Micron Purchased Assets and the Assumed Liabilities; provided, however, that nothing in this Section 6.4(b) shall be deemed to require any Party to disclose any information that it is prohibited from 

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disclosing under any non-disclosure agreement entered into prior to the date of this Agreement or in the ordinary course of business after the date of this Agreement.
6.5    Traceability and Data Retention.
(a)    For two years after the Closing Date, Micron shall provide IMFT, Intel and their respective representatives with reasonable access, during normal business hours, without interruption to the MTV Fab Operations and upon reasonable advance notice, and only after the implementation of reasonable, as determined in Micron's sole discretion, safeguards, including execution of a confidentiality agreement and prior approval of the representatives, to the premises, property and books and records, including production documents, of the MTV Fab Operations to the extent necessary or appropriate in the reasonable discretion of IMFT or Intel, respectively, for the purposes of investigating, confirming or determining the extent or amount of any product liability, warranty, refund or similar claims and obligations which may arise with respect to Products manufactured at the MTV Fab Operations prior to Closing. 
(b)    Micron agrees to maintain for a minimum of five years any data relating to the process traceability system of the MTV Fab Operations in regards to defining unique lot and wafer number markings on each wafer throughout the manufacturing, assembly and testing process, including quality and testing information.  Micron will endeavor to provide IMFT and Intel with full access to such data to the extent that Micron has such access, including providing access to such subcontractor data as reasonably requested by IMFT or Intel. 
6.6    Export Compliance Notification.  IMFT hereby notifies and advises Micron that the Micron Purchased Assets that are being purchased pursuant to the terms of this Agreement contain certain products, equipment, systems containing IMFT products, proprietary data, technical data, process technology, know-how, software, services, or other data or information that are subject to United States export control laws, and accordingly their use, export and re-export, and retransfer may require an approval or may be restricted or prohibited.  Additionally, these items may also be subject to the export control laws of the country from where it is shipping, thus an additional approval may be required or a restriction on the export from the country of shipment may apply. 
ARTICLE VII
MISCELLANEOUS
7.1    Notices.  All notices, requests, demands or other communications that are required or may be given pursuant to the terms of this Agreement will be given pursuant to Section 8.3 of the 2012 Master Agreement.
7.2    Remedies.  From and after the Closing, the indemnification remedies set forth in Article 6 of the 2012 Master Agreement shall be the Parties' sole and exclusive remedies for any breach under this Agreement.
7.3    Dispute Resolution.  Any controversy, dispute or Claim arising out of, in connection with, or in relation to the interpretation, performance, nonperformance, validity, termination or breach of this Agreement or otherwise arising out of, or in any way related to this 

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Agreement or the transactions contemplated hereby will be governed by, and be subject to, the provisions of Section 8.9 of the 2012 Master Agreement, which provisions (and related defined terms) are hereby incorporated by reference into this Agreement; provided, however, that any references to “Agreement” in such Section 8.9 as incorporated herein shall be deemed to be references to this Agreement.
7.4    Jurisdiction and Venue; Waiver of Jury Trial.
(a)    Any suit, action or proceeding seeking to enforce any provision of, or based on any matter arising out of or in connection with, this Agreement shall be brought in a state or federal court located in Delaware and each of the Parties to this Agreement hereby consents and submits to the exclusive jurisdiction of such courts (and of the appropriate appellate courts therefrom) in any such suit, action or proceeding and irrevocably waives, to the fullest extent permitted by Applicable Law, any objection which it may now or hereafter have to the laying of the venue of any such suit, action or proceeding in any such court or that any such suit, action or proceeding which is brought in any such court has been brought in an inconvenient forum.  Process in any such suit, action or proceeding may be served on any party anywhere in the world, whether within or without the jurisdiction of any such court.
(b)    EACH PARTY ACKNOWLEDGES AND AGREES THAT ANY CONTROVERSY THAT MAY ARISE UNDER THIS AGREEMENT IS LIKELY TO INVOLVE COMPLICATED AND DIFFICULT ISSUES, AND THEREFORE EACH SUCH PARTY HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY RIGHT SUCH PARTY MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT.  EACH PARTY CERTIFIES AND ACKNOWLEDGES THAT (i) NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER, (ii) EACH SUCH PARTY UNDERSTANDS AND HAS CONSIDERED THE IMPLICATIONS OF THIS WAIVER, (iii) EACH SUCH PARTY MAKES THIS WAIVER VOLUNTARILY, AND (iv) EACH SUCH PARTY HAS BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE WAIVERS AND CERTIFICATIONS IN THIS SECTION 7.4.
7.5    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.
7.6    Entire Agreement.  This Agreement, the documents to be executed hereunder and the Exhibits and Schedules attached hereto and the 2012 Master Agreement constitute the entire agreement between the Parties hereto pertaining to the subject matter hereof and supersede all prior and contemporaneous agreements, understandings, negotiations and discussions, whether oral or written, of the Parties pertaining to the subject matter hereof.
7.7    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 

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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.
7.8    Waiver.  Any Party hereto may (a) extend the time for the performance of any of the obligations or other acts of any other Party hereto or (b) waive compliance with any of the agreements of any other Party or with any conditions to its own obligations.  Any agreement on the part of a Party hereto to any such extension or waiver will be valid if set forth in an instrument in writing signed on behalf of such Party.
7.9    Amendment.  This Agreement may not be amended except by an instrument in writing signed by each of the Parties hereto.  No supplement, alteration or modification of this Agreement will be binding unless executed in writing by the Parties hereto.
7.10    Assignment.  This Agreement shall be binding upon and inure to the benefit of the successors and assigns of each Party hereto.  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, including by operation of law or in connection with any acquisition, merger, or change of control of a Party, without the prior written consent of the nonassigning Parties.
7.11    Governing Law.  This Agreement shall be construed and enforced in accordance with and governed by the laws of the State of Delaware, without giving effect to the principles of conflict of laws thereof.
7.12    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.
7.13    Expenses.  Whether or not the transactions contemplated by this Agreement are ultimately consummated, each Party shall bear its own costs and expenses in connection with the negotiation, execution and delivery of this Agreement except as otherwise provided herein.
7.14    Further Assurances.  The Parties will deliver any and all other instruments or documents required to be delivered pursuant to, or reasonably necessary or proper in order to give effect to, the terms and provisions of this Agreement.
7.15    Disclaimers.  
(a)    Micron acknowledges that it has conducted such investigation and inspection of the Micron Purchased Assets, the Assumed Liabilities and the MTV Fab Operations that Micron has deemed necessary or appropriate for the purpose of entering into this Agreement and consummating the transactions contemplated by this Agreement.  In executing this Agreement, Micron is relying on its own investigations in electing to acquire the Micron Purchased Assets on the terms and subject to the conditions set forth in this Agreement and on the provisions set forth herein, and not on any other statements, presentations, representations, 

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warranties or assurances of any kind made by IMFT, Intel, their respective representatives or any other Person.
(b)    Micron acknowledges that (i) the representations and warranties of IMFT and Intel under Article II and Article IV, respectively, constitute the sole and exclusive representations and warranties of IMFT and Intel, as applicable, to Micron in connection with the transactions contemplated by this Agreement and (ii) all other representations and warranties are specifically disclaimed and may not be relied upon or serve as a basis for a claim against either IMFT or Intel, as applicable.  MICRON ACKNOWLEDGES THAT IMFT DISCLAIMS ALL WARRANTIES OTHER THAN THOSE EXPRESSLY CONTAINED IN THIS AGREEMENT AS TO THE MICRON PURCHASED ASSETS, WHETHER EXPRESS OR IMPLIED, INCLUDING ANY WARRANTY OF MERCHANTABILITY OR WARRANTY FOR FITNESS FOR A PARTICULAR PURPOSE.  EXCEPT FOR THOSE REPRESENTATIONS AND WARRANTIES MADE BY IMFT EXPRESSLY CONTAINED IN THIS AGREEMENT, MICRON IS ACQUIRING THE MICRON PURCHASED ASSETS ON AN “AS IS, WHERE IS” BASIS.  MICRON FURTHER ACKNOWLEDGES THAT INTEL DISCLAIMS ALL WARRANTIES OTHER THAN THOSE MADE BY IT EXPRESSLY CONTAINED IN THIS AGREEMENT.  NEITHER IMFT NOR INTEL MAKES ANY REPRESENTATION OR WARRANTY, EXPRESS OR IMPLIED, ORAL OR WRITTEN, WHETHER OF MERCHANTABILITY, SUITABILITY, NONINFRINGEMENT OR FITNESS FOR A PARTICULAR PURPOSE, OR QUALITY AS TO THE MICRON PURCHASED ASSETS OR ANY PART OR ITEM THEREOF, OR AS TO THE CONDITION, DESIGN, OBSOLESCENCE, WORKING ORDER OR WORKMANSHIP THEREOF, OR THE ABSENCE OF ANY DEFECTS THEREIN, WHETHER LATENT OR OTHERWISE.
(c)    Intel acknowledges that (i) the representations and warranties of IMFT and Micron under Article II and Article III, respectively, constitute the sole and exclusive representations and warranties of IMFT and Micron, as applicable, to Intel in connection with the transactions contemplated by this Agreement and (ii) all other representations and warranties are specifically disclaimed and may not be relied upon or serve as a basis for a claim against either IMFT or Micron, as applicable.  INTEL ACKNOWLEDGES THAT MICRON AND IMFT EACH DISCLAIM ALL WARRANTIES OTHER THAN THOSE MADE BY IT EXPRESSLY CONTAINED IN THIS AGREEMENT.
(d)    IMFT acknowledges that (i) the representations and warranties of Micron and Intel under Article III and Article IV, respectively, constitute the sole and exclusive representations and warranties of Micron and Intel, as applicable, to IMFT in connection with transactions contemplated by this Agreement and (ii) all other representations and warranties are specifically disclaimed and may not be relied upon or serve as a basis for a claim against either Micron or Intel, as applicable.  IMFT ACKNOWLEDGES THAT MICRON AND INTEL EACH DISCLAIM ALL WARRANTIES OTHER THAN THOSE MADE BY IT EXPRESSLY CONTAINED IN THIS AGREEMENT.

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7.16    Certain Interpretive Matters.
(a)    Unless the context requires otherwise, (i) all references to Sections, Articles or the Appendix are to Sections, Articles or the Appendix of or to this Agreement, (ii) words in the singular include the plural and vice versa, (iii) the term “including” means “including without limitation,” and (iv) 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.  Unless otherwise specified herein, all amounts and payments shall be in United States dollars, and all references to “$” or dollar amounts will be to lawful currency of the United States of America.  All references to “$” or dollar amounts shall be to precise amounts and not rounded up or down.  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 VIII
DEFINITIONS
8.1    Definitions.  Unless otherwise defined in this Agreement, the following terms have the meanings specified or referred to in this Article VIII:
“Applicable Law” means any laws, statutes, rules, regulations, ordinances, orders, codes, arbitration awards, judgments, decrees or other legal requirements of any Governmental Entity.
“Back-End Products” shall have the meaning set forth in the IMFT Back-End Products Purchase Agreement.
“Claims” means, collectively, claims, counterclaims, cross-claims, demands, actions, suits, proceedings, judgments, damages, liabilities, losses, costs and expenses.
“Closing” shall have the meaning set forth in the 2012 Master Agreement.
“Closing Date” means the date on which the Closing occurs.
“Environmental Laws” means any and all laws (including common law), legislation, regulation, order, permit, license, code or governmental policy having the force of law or requirement under the MTV Lease Agreement that is applicable to the MTV Leased Premises, the MTV Fab Operations or the Micron Purchased Assets, in each case concerning (i) the environment, including pollution, contamination, environmental response, environmental investigations, environmental monitoring, clean-up, decontamination, abatement, preservation, protection, management and reclamation of the environment, (ii) human health or safety relating to workplace requirements or conditions or the exposure of employees, workers or other Persons to any chemical or substance, or (iii) the production and management or release or threatened 

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release of any chemical or substance (including waste and Hazardous Substances), including purchase, manufacture, generation, use, treatment, processing, handling, storage, disposal, transportation, re-use, recycling or reclamation of any chemical or substance (including waste and Hazardous Substances).
“Governmental Entity” means any governmental authority or entity, including any agency, board, bureau, commission, court, municipality, department, subdivision or instrumentality thereof, or any arbitrator or arbitration panel.
“Hazardous Substances” means any asbestos, any petroleum and petroleum products (including without limitation crude oil and any fractions thereof), any natural gas, synthetic gas, and any mixtures thereof, any flammable, explosive, radioactive, hazardous, toxic, contaminating, polluting matter, waste or substance, including without limitation any material defined, listed, designated, classified, regulated or referred to by any Governmental Entity as a hazardous, dangerous, or toxic waste, material or substance, or contaminant or pollutant, or other similar term, under any Environmental Laws in effect or that may be promulgated in the future.
“IMFT Back-End Products Purchase Agreement” means that certain IMFT Back-End Products Purchase Agreement, dated as of the date hereof, by and between IMFT, Intel and Micron.
“Independent Accounting Firm” means PricewaterhouseCoopers LLP (and its affiliated accounting firms), or, if such firm is unable or unwilling to act, such other independent public accounting firm as shall be agreed in writing by IMFT (subject to and in accordance with Section 1.11) and Micron.
“Intel Supply Agreement” means that certain Supply Agreement, dated as of January 6, 2006, between Intel and IMFT, as amended.
“Joint Venture Documents” shall have the meaning set forth in the 2012 Master Agreement.
“Liability” means, with respect to any Person, any liability or obligation of such Person of any kind, character or description, whether known or unknown, absolute or contingent, asserted or unasserted, accrued or unaccrued, liquidated or unliquidated, secured or unsecured, joint or several, due or to become due, vested or unvested, executory, determined, determinable or otherwise and whether or not the same is required to be accrued on the financial statements of such Person.
“Lien” means any charge, Claim, mortgage, lien, option, pledge, security interest or other restriction of any kind (other than those created under applicable United States federal or state securities laws).
“Material Adverse Effect” means (i) a material adverse effect on the business, results of operations or financial condition of a Party and its subsidiaries, taken as a whole, or (ii) any change or effect that prevents or materially impedes or delays the consummation of the transactions contemplated by this Agreement and the Joint Venture Documents and the other transactions contemplated hereby and thereby, all taken as a whole; provided, that changes and 

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effects attributable to changes in Applicable Law of general applicability or interpretations thereof by courts or Governmental Entities shall not be deemed, either alone or in combination, to constitute, and shall not be taken into account in determining whether there has been or will be, a Material Adverse Effect.
“Modified GAAP” means United States generally accepted accounting principles as in effect from time to time, except that: (i) stock-related expenses (including stock options, restricted stock, stock appreciation rights, restricted stock units, stock purchase programs or any award based on equity of Intel or Micron) associated with the seconded individuals to IMFT will not be recorded or disclosed in the financial statements of IMFT; and (ii) the value of any asset, contributed or otherwise transferred to IMFT from Intel or Micron shall be the value as agreed upon by Intel and Micron at the time of the contribution or transfer, as applicable, and, if such asset is or was to be depreciated or amortized under GAAP, the useful life and method of depreciation or amortization for such asset shall be determined by applying the accounting policies used by IMFT for like assets.
“MTV APSA Disclosure Letter” means the disclosure letter, as agreed to between the Parties as of the date hereof, containing the Schedules required by the provisions of this Agreement.
“MTV APSA Exhibit Letter” means the exhibit letter, as agreed to between the Parties as of the date hereof, containing the Exhibits required by the provisions of this Agreement.
“MTV Employees” means all of the employees of Micron who have worked or do work primarily at or were or are seconded to the MTV Fab Operations, whether under the Manufacturing Services Agreement or any other secondment arrangement (including (i) those on military leave and family and medical leave, (ii) those on approved leaves of absence, but only to the extent they have reemployment rights guaranteed under Applicable Law, under any applicable collective bargaining agreement or under any leave of absence policy of Micron and (iii) those on short-term disability under the short-term disability program of Micron).
“MTV Net Book Value” means (i) the book value of the Micron Purchased Assets as of the close of business on the day immediately preceding the Closing Date, net of accumulated depreciation, amortization and other adjustments less (ii) the book value as of the close of business on the day immediately preceding the Closing Date of the Assumed Liabilities, in each case as determined in accordance with Modified GAAP consistently applied and using the same accounting methods, policies, practices, principles, procedures, exceptions, classifications, assumptions, judgments and valuation and estimation methodologies that were used in the preparation of the audited financial statements of IMFT at September 1, 2011, provided, however, that the MTV Net Book Value shall in any event reflect the results of the physical counts, inventories and reviews contemplated by Sections 4.10 and 4.11 of the 2012 Master Agreement.  For the avoidance of doubt, the MTV Net Book Value of the MTV Lease Agreement shall be the Unamortized MTV Lease Value, as defined in the IMFT Agreement, as of the close of business on the day immediately preceding the Closing Date and the MTV Net Book Value shall be determined without giving effect to the transactions contemplated by this Agreement and without any write-off or write-down resulting from the transactions contemplated by this Agreement or 

22

IMFT's determination to dispose of the Micron Purchased Assets or to discontinue the MTV Fab Operations.
“Order” means any preliminary or permanent injunction, temporary restraining order or other judicial or administrative order or decree of any Governmental Entity.
“Permitted Lien” means (i) restrictions on transfer under the Joint Venture Documents, as such were originally executed or as such may have been amended prior to the Closing, (ii) statutory liens for current Taxes not yet due or delinquent (or which may be paid without interest or penalties) or the validity or amount of which is being contested in good faith by appropriate proceedings, (iii) mechanics', carriers', workers', repairers' and other similar liens arising or incurred in the ordinary course of business relating to obligations as to which there is no default on the part of the transferring Party for a period greater than 60 days, or the validity or amount of which is being contested in good faith by appropriate proceedings, or pledges, deposits or other liens securing the performance of bids, trade contracts, leases or statutory obligations (including workers' compensation, unemployment insurance or other social security legislation), (iv) zoning, entitlement, conservation restriction and other land use and environmental regulations by Governmental Entities and (v) all exceptions, restrictions, easements, imperfections of title, charges, rights-of-way and other Liens that do not materially interfere with the present use of the assets, taken as a whole.
“Person” or “Persons” means any natural person and any corporation, firm, partnership, trust, estate, limited liability company or other entity resulting from any form of association.
“Post-Closing Adjustment” means the amount calculated as the Purchase Price minus the Estimated Purchase Price.
“Products” shall have the meaning set forth in the Intel Supply Agreement.
“Taxes,” “Taxation” or “Tax” means any federal, state, local or foreign net income, gross income, gross receipts, sales, use, ad valorem, transfer, franchise, profits, service, service use, withholding, payroll, employment, excise, severance, goods and services, stamp, occupation, premium, property, customs, duties or other type of fiscal levy and all other taxes, governmental fees, registration fees, assessments or charges of any kind whatsoever, together with any interest and penalties, additions to tax or additional amounts imposed or assessed with respect thereto.
“Tax Authority” means any taxing or other authority competent to impose any liability in respect of Taxation or responsible for the administration and/or collection of Taxation or enforcement of any law in relation to Taxation. 
“Virginia Grants” means, collectively, any performance grants granted to Micron for the MTV Fab Operations by a Governmental Entity in the Commonwealth of Virginia, including (i) pursuant to the terms and conditions of that certain Memorandum of Understanding, dated as of January 3, 2005, by and between the Commonwealth of Virginia and Micron, (ii) pursuant to the Governor's Development Opportunity Fund, as permitted by Section 2.2-115(C) of the Code of Virginia of 1950, as amended, and (iii) pursuant to the terms and conditions of that certain 

23

Virginia Investment Partnership Grant Performance Agreement, dated as of November 18, 2010, by and between the Commonwealth of Virginia and Micron.
[Signature Page Follows]
        

24

IN WITNESS WHEREOF, the Parties have executed this Agreement as of the Effective Date.
	
			
	 
	INTEL CORPORATION

	 
	By: 
	/s/ Brian Krzanich

	 
	 
	Brian Krzanich
Senior Vice President, Chief Operating Officer

	 
	MICRON TECHNOLOGY, INC.

	 
	By: 
	

/s/ D. Mark Durcan

	 
	 
	D. Mark Durcan
Chief Executive Officer

	 
	IM FLASH TECHNOLOGIES, LLC

	 
	By:
	

/s/ Rodney Morgan

	 
	 
	Rodney Morgan
Co-Executive Officer

	 
	By:
	/s/ Keyvan Esfarjani

	 
	 
	Keyvan Esfarjani
Co-Executive Officer

THIS IS THE SIGNATURE PAGE FOR THE 
MTV ASSET PURCHASE AND SALE AGREEMENT
ENTERED INTO BY AND AMONG
INTEL CORPORATION, MICRON TECHNOLOGY, INC. AND
IM FLASH TECHNOLOGIES, LLC

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