Document:

Exhibit 10.15

 

Trademark License Agreement

 

This Trademark License Agreement (“Agreement”) is made by and between
TCL Multimedia Technology Holdings Limited (“Licensor”), with an office at 13/F
TCL Tower, 8 Tai Chung Road, Tsuen Wan, New Territories, Hong Kong, and Opta Corporation,
a Delaware corporation, with an office at 1350 Old Bayshore Highway, Suite 600,
Burlingame, CA 94010 (together with Licensor, (the “Parties”), as of January 12,
2006 (“Effective Date”).

 

WITNESSETH:

 

Whereas Licensor owns certain names, brand names, service marks, trade
dress and/or trademarks; and

 

Whereas Licensee desires to the right to use the Trademarks in
connection with the distribution, sale, advertising and promotion of certain
products, to supply certain consumer electronics products to third parties,
and/or to sub-license the Trademarks to third parities, subject to the terms
and conditions set forth herein, including without limitation licensee’s
payment of certain license fees.

 

NOW, THEREFORE, for good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties agree as follows:

 

DEFINITIONS

 

“Territory” means the trade names, brand names, service marks, trade
dress and/or trademarks identified in Schedule A.

 

“Licensed Products” means the products as defined in Schedule B.

 

“License Fees” means the fees as defined in Schedule C.

 

“Promotional Period” means August 24, 2005 through August 31,
2008.

 

“CineVision” means the Cinevision brand.

 

“Subsidiary” means any entity in which Licensor or Licensee now or
hereafter owns or controls directly or indirectly, fifty percent (50%) or more
of the stock or participating shares entailed to vote for the election of
director of such entity.

 

1.                                       License

 

1.0                                 License
grant/Supply

 

1.0.1                        License
grant: Subject to the terms and conditions of this Agreement, Licensor hereby
grants to Licensee a non-transferable, exclusive, sub-licensable, limited right
(as 

 

 

set out in this Agreement) and license to use the Trademarks in
connection with the distribution, sale, advertising and promotion of certain
consumer electronics products, in the Territory, and to sub-license the
Trademarks to third parties under which third parties will be able to use the
trademarks in connection with the distribution, sale, advertising and promotion
of certain consumer electronics products, for sale in the Territory, for the
term of this Agreement, subject to Licensee’s payment to Licensor of the
License fees stated in Schedule C.

 

1.0.2                        License
Grant for Cinevision: Licensor hereby grants Licensee a non-transferable,
exclusive, sub-licensable, limited rights and license to sell, distribute,
advertise, promote, and sub-license consumer electronics products bearing
Cinevision. Licensee agrees to sub-license CineVision on a royalty-free basis
to TTE Corporation (“TTE”) under a separate letter agreement during the Term of
this Agreement.

 

2                                          Trademark
Usage

 

2.1                                 Markings:
Licensee shall include all notices, markings, and legend as required by
applicable laws, rules or regulations, or as reasonably requested in
writing by Licensor, in order to give appropriate notice of Licensor’s
trademark rights.

 

2.2                                 applicable
Laws: Licensee shall comply with all applicable United States laws and other
applicable laws, rules and regulations related to advertising and
promotions or otherwise in connection with the Trademarks.

 

2.3                                 Licensor
Ownership: Licensee acknowledges and agrees that:

 

2.3.1                        the
Trademarks, and all goodwill associated therewith, are owned solely by
Licensor; all use of the Trademarks shall inure solely to the benefit of and be
on behalf of Licensor;

 

2.3.2                        the
license granted herein is not intended to be and shall not be construed as an
assignment to Licensee of any of Licensor’s right, title or interest in the
Trademarks; and nothing herein confers on Licensee any right, title or interest
in the Trademarks other than the limited right to use the Trademarks in
accordance with this Agreement;

 

2.3.3                        Licensee
shall not knowingly do or cause to be done. Or omit to do or be done, anything
with the intention or impair the value of the Trademarks, or any of the rights
of Licensor in the trademarks;

 

2.3.4                        Licensor
retains the right to use or to license the use of the Trademarks for any
business, goods or service, except specifically in connection with the Licensed
Products sold in the Territory as expressly provided for in this Agreement;

 

2.3.5                        Upon
termination of this Agreement, Licensee shall cease use of the Trademarks,
unless otherwise expressly permitted herein; and

 

 

2.3.6                     Licensee’s
foregoing acknowledgements, covenants and agreements shall survive the
termination of this Agreement for any reason.

 

2.4                                 Restrictions
on License: Licensor grants no rights to Licensee with respect to the
trademarks other than those expressly granted herein. Without limiting the
foregoing, Licensee agrees that it shall not directly or indirectly, at any
time, anywhere in the territory:

 

2.4.1                        use
any of the Trademarks in conjunction with any products other than the Licensed
products, unless Licensor grants prior approval to Licensee on a case-by-case
basis;

 

2.4.2                        use
any of Licensor’s other trade names, trademarks, service marks or trade dress,
that is other than the Trademarks in accordance herewith, unless Licensor
grants prior approval to Licensee on a case by case basis;

 

2.4.3                        use
any of the Trademarks in or as a company name or in combination with any other
trade name, trademark, service mark or trade dress unless approved in advance
in writing by Licensor grants prior approval to Licensee;

 

2.4.4                        use
any trade name, trademark, service mark or trade dress which is confusingly
similar to, or which would dilute, any of the Trademarks, unless Licensor
grants prior approval to Licensee on a case-by-case basis;

 

2.4.5                        use
the Trademarks in any way that would be in consistent with its use in connection
with the Licensed Products;

 

2.4.6                        apply
to register or own any registration of any of the Trademarks, except in
furtherance of the purposes of this agreement;

 

2.4.7                        assign
or transfer this Agreement or any interest in it in whole or in part without
Licensor’s prior written approval, this Agreement being personal to Licensee.

 

3                                          Enforcement

 

3.1                                 Third
Party Actions: If Licensee learns of any third party trade name, service mark,
trademark or trade dress which is likely to cause confusion with or to dilute
any of the trademarks or of any infringement by a third party of the
Trademarks, Licensee shall promptly notify Licensor in writing describing in reasonable
detail such confusion, dilution, or infringement of the Trademarks.

 

3.2                                 Licensor
Bring Action: Licensor shall have the right in its sole discretion to decide
what action, if any, to take and whether to institute and prosecute any actions
or proceedings against such confusion, dilution or infringement of the
Trademarks. Licensor agrees to defend and protect the trademarks.

 

 

3.3                                 Licensee
Bring Action: If Licensor elects not to institute an action or proceeding,
Licensee may do so only with the prior written approval of Licensor, which
shall not be unreasonably withheld, and if Licensee is approved to bring an
action or proceeding, Licensor agrees to assist Licensee if requested and/or
required to do so (as an indispensable party) in such action or proceeding at
licensee’s expense.

 

3.4                                 Joinder
of Licensee: If Licensor elects to institute and action or proceeding, it may
do so in its own name alone or may join Licensee as a party. In the event that
Licensor elects to join Licensee as a party, Licensee shall not object to such
joinder and all costs associated with Licensee’s joinder and participation in
the action or proceeding shall be at Licensor’s expense.

 

3.5                                 Cost
of Litigation: except as set forth herein, any litigation shall be prosecuted
solely at the cost and expense of the party initiating same, and all sums
recovered, whether by settlement, judgment or otherwise in excess of the amount
of reasonable attorney fees and other out-of-pocket expenses, may be retained
by the party initiating the litigation.

 

3.6.1                        Assistance:
Upon request of the party initiating the litigation, and at its expense, the
other party shall furnish all documents and information, execute all papers,
testify on all matters and otherwise cooperate in prosecuting the litigation.
During the term of this Agreement, and at any time thereafter, Licensee will assist
licensor at Licensor’s cost in taking any action that may be reasonably
necessary to secure, perfect, register, maintain and defend Licensor’s right,
title and interest in the Trademarks.

 

4.                                       License
Fees and Payment

 

4.1                                 Payment
of License fees: Licensee must pay Licensor fees as outlined in Schedule C.

 

4.2                                 Records:
Licensee shall maintain complete and accurate books and record with respect to
all of its activities under this Agreement in accordance with customary accounting
principles. Licensor and its agents shall have the right at any time on at least
forty-five (45) days notice during the term of this Agreement to examine and
copy such books, record, correspondence, quotations, orders and other documents
which pertain to the fulfillment of Licensee’s obligations under this
Agreement, as Licensor may deem necessary or appropriate, at the location
Licensee normally keeps such books and records.

 

5.                                       Term
and Termination

 

5.1                                 Term
of Agreement.  This Agreement begins on the
Effective Date and shall continue until August 31, 2008 (“Term”), unless
either party gives written notice of its intention to terminate at least one
hundred eighty (180) days prior to the expiration of this Agreement. If this
Agreement is not terminated in accordance with its terms, it shall automatically
renew for subsequent two (2) year terms.

 

 

5.2                                 Rights
of Termination.  The following rights of
termination are without limitation of other rights provided elsewhere in this
Agreement or otherwise available to either party at law or in equity.

 

5.3                                 Termination
by Licensor for Cause. Licensor shall have the right to terminate this
Agreement immediately upon written notice to Licensee following the expiry of a
thirty (30) day curative (for matters that can be cured), in the event that
Licensee:

 

5.3.1                        becomes
insolvent, or makes an assignment for the benefits of creditor, or am
arrangement pursuant to any bankruptcy law, or if a receiver is appointed for
Licensee or for Licensee’s business;

 

5.3.2                        discontinues
or dissolves its business; and

 

5.3.3                        is
in material breach of any term of this Agreement and such breach is not cured
within a reasonably period of time and the Licensee is proceeding diligently to
cure such matter.

 

5.4                                 Post
Termination.   Upon expiration or
termination of this Agreement, Licensee shall have no further right to use the
Trademarks, and shall have no further right to use the Trademarks, provided
however, that except for termination due to a material breach of this
Agreement, Licensee shall be entitled for a period not to exceed one-hundred
and eighty (180) days to continue sell in the normal course of business its
inventory of Licensed Products on hand or in process on the effective date of
expiration any where in the world, provided that all such Licensed Products and
sales thereof are subject to all the terms of this Agreement, including without
limitation Licensee’s payment of License Fees to Licensor

 

6                                          SUCCESSION

 

6.1                                 Successors
and Assigns: This Agreement shall be binding upon and inure to the benefit of
Licensor, and, to the extent permitted herein, its successors and assigns.

 

6.2                                 No
Right to Transfer/Assignment: Nothing herein shall be construed to limit the
right of Licensor to transfer or assign the Trademarks or this Agreement,
provided that the transferee or assignee agrees in writing to be bound by the
terms and conditions of this Agreement and provided further that Licensee does
not exercise their right to terminate this Agreement. Any attempted assignment
by Licensee of the Trademarks shall be null and void.

 

7                                          WARRANTIES

 

7.1                                 Licensor:
Licensor warrants and represents that:

 

7.1.1                        it
has the right and authority to enter this Agreement and grant the license
granted herein;

 

 

7.1.2                        it
has not entered into any assignments, consents or agreements with any third
party in conflict with this Agreement;

 

7.1.3                        it
has no actual knowledge that the Trademarks infringe any valid right of any
third party or that the Trademarks are infringed by any third party; and

 

7.1.4                        to
the best of its knowledge that the Trademarks and any registrations thereof are
valid, subsisting and enforceable.

 

7.2                                 DISCLAIMER:
EXCEPT AS EXPRESSLY PROVIDED IN THIS SECTION LICENSOR DISCLAIMS ANY AND
ALL WARRANTIES OR REPRESENATIONS EXPRESS OR IMPLIED, OR ORAL OR WRITTEN,
INCLUDING, BUT NOT LIMINTED TO, WARRANTIES OR REPRESNEATIONS WITH RESPECT TO
THE TRADEMARKS OR CONDITIONS OF AUTHORITY, TITLE, VALIDITY, NON-INFRINGEMENT,
MERCHANTABILITY OR FITNESS FOR ANY PURPOSE.

 

7.3                                 Licensee:
Licensee represents and warrants that it (a) is a corporation duly
organized, validly existing and in good standing under the laws of the
jurisdiction in which it is incorporated; and 9b) has full power and authority
and the legal right to enter into this Agreement. (c) is in compliance
with all requirements of applicable law, except to the extent that any
noncompliance would not have an material adverse effect on the properties,
business, financial or other conditions of Licensee and would not materially
adversely affect Licensee’s ability to perform its obligations under the
Agreement.

 

8                                          NOTICE
AND INDEMNITY

 

8.1.1                        Indemnification
by Licensee. If legal action is threatened or commenced against Licensor in
connection with the Licensee’s use of the Trademarks with Licensed Products
sold by Licensee to third parties, Licensor shall give immediate written notice
thereof to Licensee. Licensee shall defend, indemnify and hold Licensor, and
its directors, officers and employees, harmless against all claims, suits,
costs, damage, liabilities, judgments, attorney fees, settlement or expenses
incurred or awarded, whether for product liability, personal injury, patent
infringement, misappropriation or otherwise, arising out of or related to the
manufacture, use, warranty, support, marketing, sale or distribution of the
Licensed Products (except and solely to the extent that Licensor is obligated
to indemnify Licensee pursuant to Section 8.2 below). Licensee shall have
the right to defend any such action or proceeding with attorneys of its own
choosing. Licensor shall give to Licensee control over the defense or
settlement of any claim giving rise to indemnity obligations under this Section 8.1
and will reasonably cooperate with Licensee, at Licensee’s request and expense,
in the defense or settlement of such claim. Licensee will not settle any claim
in any manner which would give rise to any obligations on Licensor, or restrict
or diminish Licensor’s rights in any way, without Licensor’s prior written
content.

 

 

8.2                                 LIMIATIONS
ON LIABLITY

 

EXCEPT FOR LICENSEE’S BREACH OF SECTION 1 AND FOR EITHER PARTY’S
INDEMNITY OBLITGATIONS UNDER SECTION 8, IN NO EVENT SHALL EITHER PARTY BE
LIABLE FOR ANY LOST PROFITS OR SPECIAL, INCIDENTAL, CONSEQUENTIAL OR PUNITIVE
DAMAGES (HOWEVER ARISING, INCLUDING NEGLIGENCE) ARISING OUT OT OR IN CONNECTION
WITH THIS AGREEMENT.

 

9                                          DISPUT
RESOLUTION

 

9.1                                 General.
Any controversy or claim arising out of or relating to this Agreement, or
breach thereof, shall be settled first, by good faith efforts of the Parties to
reach mutual agreement, and second, if mutual agreements is not reached to
resolve the dispute, by legal action in a court of appropriate jurisdiction.

 

9.2                                 Injunctive
Relief. The foregoing notwithstanding, each party shall have the right to seek
injunctive relief in an applicable court of law or equity in the United States
pending resolution of the dispute in accordance with the foregoing.

 

10                                    GENERAL
PROVISIONS

 

10.1                           Governing
Law. This Agreement shall be governed by and construed and enforced in
accordance with the substantive laws of the State of Arizona. The Parties
expressly consent to exclusive venue and jurisdiction f the federal or state
courts located in Maricopa County, Arizona.

 

10.2                           Further
Assurance. The Parties shall at their own cost and expense execute and deliver
such further documents and instruments and shall take such other actions as may
be reasonably required or appropriate to carry out the intent and purposes of
the Agreement.

 

10.3                           Severability.
If any provision of this Agreement is held to be invalid or unenforceable for
any reason, the remaining provisions will continue in full force without being
impaired or invalidated in any way.

 

10.4                           No
Waiver. A waiver of any breach of any provision of this Agreement shall not be
deemed a waiver of any repetition of such breach or in any manner affect any
other terms or conditions of this Agreement.

 

10.5                           Amendments
and Modifications. No addition to or change in, or waiver of, the terms of this
Agreement will be effective or binding on either party unless reduced to
writing and executed by both Parties.

 

10.6                           Headings.
Section headings have been included in this Agreement merely for
convenience or reference. They are not to be considered part of, or to be used
in interpreting, this Agreement.

 

 

10.7                           Independent
Contractors. The Parties to this Agreement are independent contractors, and no
agency, partnership, joint venture or employee-employer relationship is
intended or created by this Agreement. Neither Party shall have the power to
obligate or bind the other party.

 

10.8                           Notice.
All notices, requests, consents, demands, instructions, approvals and other
communications hereunder shall be in writing and shall be validly given, made
or served, if delivered personally or sent by mail, recognized courier service,
telex or telefax (confirmed by mail or recognized courier service in the case
of telefaxes), and shall be deemed effective when actually received, as
follows:

 

If to Licensee:

 

Opta Corporation

1350 Old Bayshore Highway, Suite 600

Burlingame, CA 94010

Fax: 650-579-3606

 

If to Licensor:

 

TCL Multimedia Technology Holdings Limited

13/F TCL Tower, 8 Tai Chung Road

Tsuen Wan, New Territories

Hong Kong,

 

10.9                           Counterparts.
This Agreement may be executed in one or more counterparts, each of which shall
be deemed an original and all of which shall be taken together and deemed to be
one instrument. Execution by facsimile is valid and binding provided that
original copies are exchanged by the parties within thirty (30) days after last
transmission.

 

10.10                     Entire
Agreement. This Agreement sets forth the entire understanding and agreement of
the Parties and supersedes any and all prior or contemporaneous oral or written
agreements or understandings between the Parties as to the subject matter of
this Agreement. Neither Party is relying upon any warranties, representations,
assurances or inducements not expressly set forth herein.

 

IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be
duly executed as of the date first above written.

 

	
  TCL Multimedia Technology Holdings Limited:

  	
  Opta Systems, LLC dba GoVideo

  
	
  By:

  	
  /s/ Stephen Chiang

  	
   

  	
  By:

  	
  /s/ Vincent Yan

  	
   

  
	
  Printed Name: Stephen Chiang

  	
  Printed Name: Sean Wang

  
	
  Title: Chief IP Counsel, TCL

  	
  Title: CEO

  
	
  Date: 9/1/2005

  	
  Date: 8/31/2005

  
						

 

 

Schedule A

 

The Trademarks

 

	
  Trademark

  	
   

  	
  Registration No.

  
	
   

  	
   

  	
   

  
	
  GoVideo

  	
   

  	
  1,667,512 (U.S.)

  
	
   

  	
   

  	
   

  
	
  GoVideo

  	
   

  	
  TMA572,314 (Canada)

  
	
   

  	
   

  	
   

  
	
  GoVideo

  	
   

  	
  650,832 (Mexico)

  
	
   

  	
   

  	
   

  
	
  Rave-MP Media Player

  	
   

  	
  2,556,602 (U.S.)

  
	
   

  	
   

  	
   

  
	
  Rave-MP

  	
   

  	
  Pending (U.S.)

  
	
   

  	
   

  	
   

  
	
  Rave-MP

  	
   

  	
  Pending (Canada)

  
	
   

  	
   

  	
   

  
	
  Sensory Science

  	
   

  	
  2,436,356 (U.S.)

  
	
   

  	
   

  	
   

  
	
  Sensory Science

  	
   

  	
  2,520,767 (U.S.)

  
	
   

  	
   

  	
   

  
	
  Sensory Science

  	
   

  	
  TMA571,712 (Canada)

  
	
   

  	
   

  	
   

  
	
  Sensory Science

  	
   

  	
  TMA571,705 (Canada)

  
	
   

  	
   

  	
   

  
	
  California Audio Lab

  	
   

  	
  2,647,714 (U.S.)

  
	
   

  	
   

  	
   

  
	
  CineVision

  	
   

  	
  Pending (U.S.)

  

 

Such other trademark registrations or trademark applications covering
the GoVideo, Sensory Science, Rave-MP, and California Audio Labs brands in
North America.

 

Schedule B

 

Licensed Products

 

Consumer Electronics Products.

 

 

Schedule C

 

License Fees

 

License fees payable under this Agreement shall be as follows for all
sales by Licensee of Licensed Product supplied to third parties:

 

The royalty rate during the Promotional Period shall be 0.25% of the Net
Selling Price (“NSP”) per unit payable on a quarterly basis within thirty (30)
days after the completion of each calendar quarter. Licensor and Licensee agree
in the future to negotiate an amendment to this Agreement containing a revised
royalty rate to take effect by the conclusion of the Promotional Period beginning
on September 1, 2008.Exhibit 10.155

 

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

 

 

INTEL/MICRON CONFIDENTIAL

 

 

MASTER AGREEMENT

BY AND BETWEEN

MICRON TECHNOLOGY, INC.

AND

INTEL CORPORATION

NOVEMBER 18, 2005

 

 

 

 

TABLE OF CONTENTS

 

	
   

  	
   

  	
   

  	
  Page

  
	
  ARTICLE 1.

  	
   

  	
  DEFINITIONS

  	
  1

  
	
   

  	
   

  	
   

  	
   

  
	
  1.1

  	
   

  	
  Definitions

  	
  1

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 2.

  	
   

  	
  CONTRACTS PRIOR TO CLOSING; CONTRIBUTION OF ASSETS

  	
  2

  
	
   

  	
   

  	
   

  	
   

  
	
  2.1

  	
   

  	
  Pre-Existing and
  Contemporaneously Executed Contracts Between the Parties

  	
  2

  
	
   

  	
   

  	
   

  	
   

  
	
  2.2

  	
   

  	
  Contracts to be Entered
  into by the Parties

  	
  2

  
	
   

  	
   

  	
   

  	
   

  
	
  2.3

  	
   

  	
  Contracts to be Entered
  into by Intel and the Joint Venture Company

  	
  2

  
	
   

  	
   

  	
   

  	
   

  
	
  2.4

  	
   

  	
  Contracts to be Entered
  into by Micron and the Joint Venture Company

  	
  2

  
	
   

  	
   

  	
   

  	
   

  
	
  2.5

  	
   

  	
  Contracts to be Entered
  into by the Parties and the Joint Venture Company

  	
  2

  
	
   

  	
   

  	
   

  	
   

  
	
  2.6

  	
   

  	
  Contribution of Assets

  	
  2

  
	
   

  	
   

  	
   

  	
   

  
	
  2.7

  	
   

  	
  Assumption of
  Liabilities

  	
  2

  
	
   

  	
   

  	
   

  	
   

  
	
  2.8

  	
   

  	
  Certain Prorations

  	
  3

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 3.

  	
   

  	
  REPRESENTATIONS AND WARRANTIES

  	
  3

  
	
   

  	
   

  	
   

  	
   

  
	
  3.1

  	
   

  	
  Intel Representations

  	
  3

  
	
   

  	
   

  	
   

  	
   

  
	
  3.2

  	
   

  	
  Micron Representations

  	
  4

  
	
   

  	
   

  	
   

  	
   

  
	
  3.3

  	
   

  	
  Reliance by the Joint
  Venture Company

  	
  10

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 4.

  	
   

  	
  COVENANTS

  	
  10

  
	
   

  	
   

  	
   

  	
   

  
	
  4.1

  	
   

  	
  Exclusive Dealing

  	
  10

  
	
   

  	
   

  	
   

  	
   

  
	
  4.2

  	
   

  	
  Reasonable Efforts

  	
  11

  
	
   

  	
   

  	
   

  	
   

  
	
  4.3

  	
   

  	
  Governmental Filings

  	
  11

  
	
   

  	
   

  	
   

  	
   

  
	
  4.4

  	
   

  	
  Access to Properties
  and Records

  	
  11

  
	
   

  	
   

  	
   

  	
   

  
	
  4.5

  	
   

  	
  Further Assurances

  	
  11

  
	
   

  	
   

  	
   

  	
   

  
	
  4.6

  	
   

  	
  Transfer Taxes

  	
  12

  
	
   

  	
   

  	
   

  	
   

  
	
  4.7

  	
   

  	
  Confidentiality

  	
  12

  
	
   

  	
   

  	
   

  	
   

  
	
  4.8

  	
   

  	
  Press Releases

  	
  12

  
	
   

  	
   

  	
   

  	
   

  
	
  4.9

  	
   

  	
  Legally Compelled
  Disclosures

  	
  12

  
	
   

  	
   

  	
   

  	
   

  
	
  4.10

  	
   

  	
  Ownership Interest

  	
  13

  
	
   

  	
   

  	
   

  	
   

  
	
  4.11

  	
   

  	
  Continuity and
  Maintenance of Operations

  	
  13

  
	
   

  	
   

  	
   

  	
   

  
	
  4.12

  	
   

  	
  Certain Deliveries and
  Notices

  	
  13

  
	
   

  	
   

  	
   

  	
   

  
	
  4.13

  	
   

  	
  Non-solicitation of
  Employees

  	
  13

  

 

i

 

	
   

  	
   

  	
   

  	
  Page

  
	
  4.14

  	
   

  	
  Initial Business Plan

  	
  15

  
	
   

  	
   

  	
   

  	
   

  
	
  4.15

  	
   

  	
  Title

  	
  15

  
	
   

  	
   

  	
   

  	
   

  
	
  4.16

  	
   

  	
  Water Rights

  	
  15

  
	
   

  	
   

  	
   

  	
   

  
	
  4.17

  	
   

  	
  Completion of Work

  	
  15

  
	
   

  	
   

  	
   

  	
   

  
	
  4.18

  	
   

  	
  Tax Matters

  	
  15

  
	
   

  	
   

  	
   

  	
   

  
	
  4.19

  	
   

  	
  Supply Agreements

  	
  16

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 5.

  	
   

  	
  CLOSING

  	
  16

  
	
   

  	
   

  	
   

  	
   

  
	
  5.1

  	
   

  	
  Closing

  	
  16

  
	
   

  	
   

  	
   

  	
   

  
	
  5.2

  	
   

  	
  Conditions to the
  Obligations of the Parties

  	
  16

  
	
   

  	
   

  	
   

  	
   

  
	
  5.3

  	
   

  	
  Conditions to the
  Obligations of Intel

  	
  17

  
	
   

  	
   

  	
   

  	
   

  
	
  5.4

  	
   

  	
  Conditions to
  Obligations of Micron

  	
  18

  
	
   

  	
   

  	
   

  	
   

  
	
  5.5

  	
   

  	
  Closing Deliverables of
  Micron

  	
  19

  
	
   

  	
   

  	
   

  	
   

  
	
  5.6

  	
   

  	
  Closing Deliverables of
  Intel

  	
  19

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 6.

  	
   

  	
  INDEMNIFICATION

  	
  19

  
	
   

  	
   

  	
   

  	
   

  
	
  6.1

  	
   

  	
  Survival

  	
  19

  
	
   

  	
   

  	
   

  	
   

  
	
  6.2

  	
   

  	
  Indemnification

  	
  20

  
	
   

  	
   

  	
   

  	
   

  
	
  6.3

  	
   

  	
  Procedures

  	
  21

  
	
   

  	
   

  	
   

  	
   

  
	
  6.4

  	
   

  	
  Specific Performance

  	
  22

  
	
   

  	
   

  	
   

  	
   

  
	
  6.5

  	
   

  	
  Treatment of
  Indemnification Payments; Insurance Recoveries

  	
  22

  
	
   

  	
   

  	
   

  	
   

  
	
  6.6

  	
   

  	
  Certain Additional
  Procedures

  	
  22

  
	
   

  	
   

  	
   

  	
   

  
	
  6.7

  	
   

  	
  Remedies

  	
  23

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 7.

  	
   

  	
  TERMINATION

  	
  23

  
	
   

  	
   

  	
   

  	
   

  
	
  7.1

  	
   

  	
  Termination

  	
  23

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 8.

  	
   

  	
  MISCELLANEOUS

  	
  24

  
	
   

  	
   

  	
   

  	
   

  
	
  8.1

  	
   

  	
  Limitation of Liability

  	
  24

  
	
   

  	
   

  	
   

  	
   

  
	
  8.2

  	
   

  	
  Exclusions and
  Mitigation

  	
  24

  
	
   

  	
   

  	
   

  	
   

  
	
  8.3

  	
   

  	
  Notices

  	
  24

  
	
   

  	
   

  	
   

  	
   

  
	
  8.4

  	
   

  	
  Waiver

  	
  25

  
	
   

  	
   

  	
   

  	
   

  
	
  8.5

  	
   

  	
  Assignment

  	
  25

  
	
   

  	
   

  	
   

  	
   

  
	
  8.6

  	
   

  	
  Third Party Rights

  	
  25

  

 

ii

 

	
   

  	
   

  	
   

  	
  Page

  
	
  8.7

  	
   

  	
  Choice of Law

  	
  26

  
	
   

  	
   

  	
   

  	
   

  
	
  8.8

  	
   

  	
  Jurisdiction; Venue

  	
  26

  
	
   

  	
   

  	
   

  	
   

  
	
  8.9

  	
   

  	
  Dispute Resolution

  	
  26

  
	
   

  	
   

  	
   

  	
   

  
	
  8.10

  	
   

  	
  Headings

  	
  27

  
	
   

  	
   

  	
   

  	
   

  
	
  8.11

  	
   

  	
  Entire Agreement

  	
  27

  
	
   

  	
   

  	
   

  	
   

  
	
  8.12

  	
   

  	
  Severability

  	
  27

  
	
   

  	
   

  	
   

  	
   

  
	
  8.13

  	
   

  	
  Counterparts

  	
  27

  
	
   

  	
   

  	
   

  	
   

  
	
  8.14

  	
   

  	
  Expenses

  	
  27

  
	
   

  	
   

  	
   

  	
   

  
	
  8.15

  	
   

  	
  Certain Interpretive
  Matters

  	
  27

  

 

iii

 

MASTER AGREEMENT

 

This MASTER
AGREEMENT (together with the Appendix hereto, this “Agreement”), dated as of the 18th day of November, 2005, is
entered into by and between Intel Corporation, a Delaware corporation (“Intel”), and Micron Technology, Inc., a Delaware
corporation (“Micron”).

 

RECITALS

 

A.                                   Micron
currently designs, manufactures and produces NAND Flash Memory Products for use
in various consumer electronics and other end applications.

 

B.                                     The
manufacture of NAND Flash Memory Products requires the investment of
significant financial resources to acquire and maintain leading-edge
technology, manufacturing equipment and facilities.

 

C.                                     Micron
desires to expand its portfolio of NAND Flash Memory Products by producing a
greater variety of such products than it presently has the ability to offer and
by increasing the volume of such products that it can offer.

 

D.                                    Intel
desires to enter the marketplace for NAND Flash Memory Products by obtaining
rights to design, manufacture and sell NAND Flash Memory Products that are
manufactured pursuant to designs owned by Intel.

 

E.                                      To
effectuate their desires, Intel and Micron (the “Parties”)
desire to combine certain resources by making contributions to the capital of
IM Flash Technologies, LLC, a Delaware limited liability company (the “Joint Venture Company”), for the collaborative manufacture
(including by subcontract to Micron) and sale to the Parties of leading-edge
NAND Flash Memory Products.

 

F.                                      The
Parties desire to jointly invest in the Joint Venture Company to enable it to
build and operate manufacturing facilities.

 

G.                                     The
Parties desire to enter into various agreements with the Joint Venture Company,
and with each other, to set forth the ongoing governance and operating
relationships among the Parties and the Joint Venture Company relating to the
business of the Joint Venture Company, all as contemplated by this Agreement.

 

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

 

ARTICLE 1.

DEFINITIONS

 

1.1                                 Definitions.
Capitalized terms used in this Agreement shall have the respective meanings
ascribed to such terms in Appendix A to this Agreement.

 

 

ARTICLE 2.

CONTRACTS PRIOR TO CLOSING; CONTRIBUTION OF ASSETS

 

2.1                                 Pre-Existing
and Contemporaneously Executed Contracts Between the Parties. On or prior
to the date of this Agreement, the Parties have entered into the agreements
listed on Schedule 2.1 of the Master Agreement Disclosure Letter
(the “Pre-Existing and Contemporaneously Executed
Agreements”).

 

2.2                                 Contracts
to be Entered into by the Parties. At the Closing, the Parties will enter
into the agreements listed on Schedule 2.2 of the Master Agreement
Disclosure Letter (the “Bilateral Agreements”).

 

2.3                                 Contracts
to be Entered into by Intel and the Joint Venture Company. At the Closing,
Intel will enter into, and the Parties will cause the Joint Venture Company to
enter into, the agreements listed on Schedule 2.3 of the Master
Agreement Disclosure Letter (the “Intel Agreements”).

 

2.4                                 Contracts
to be Entered into by Micron and the Joint Venture Company. At the Closing,
Micron will enter into, and the Parties will cause the Joint Venture Company to
enter into, the agreements listed on Schedule 2.4 of the Master
Agreement Disclosure Letter (the “Micron Agreements”).

 

2.5                                 Contracts
to be Entered into by the Parties and the Joint Venture Company. At the
Closing, the Parties will enter into, and will cause the Joint Venture Company
to enter into, the agreements listed on Schedule 2.5 of the Master
Agreement Disclosure Letter (the “Trilateral Agreements”).

 

2.6                                 Contribution
of Assets. At the Closing, upon the terms and subject to the conditions set
forth in this Agreement, and in reliance upon the representations, warranties
and agreements set forth herein:

 

(A)                              Intel
Contribution. Intel shall contribute to the Joint Venture Company and the
Joint Venture Company shall accept from Intel the Intel contribution specified
in Appendix D to the Operating Agreement.

 

(B)                                Micron
Contribution. Micron shall contribute to the Joint Venture Company the
Micron contribution specified in Appendix D to the Operating Agreement,
including the contribution of the assets (the “Micron
Contributed Assets”) identified in such Appendix D by
conveyance, transfer, assignment and delivery to the Joint Venture Company of
such Micron Contributed Assets, and the Joint Venture Company shall accept from
Micron the Micron contribution specified in Appendix D to the Operating
Agreement.

 

2.7                                 Assumption
of Liabilities. The Joint Venture Company shall not assume any liabilities,
debts, obligations or duties of either Party of any kind or nature whatsoever,
except to the extent such liabilities, debts, obligations or duties are
expressly assumed by the Joint Venture Company under this Agreement or another
Joint Venture Document.

 

2

 

2.8                                 Certain
Prorations.

 

(A)                              Micron
shall, or shall (if applicable) cause its subsidiaries to, pay minimum or basic
rent under the personal property, real property and other equipment leases
being assigned to the Joint Venture Company by Micron that are included in the
Micron Contributed Assets through the end of the calendar month in which the
Closing Date occurs, and the Joint Venture Company shall reimburse Micron for
such rent accrued commencing with the Closing Date through the end of such
month as part of the post-Closing proration.

 

(B)                                On
the Closing Date, or as promptly as practicable following the Closing Date, but
in no event later than sixty (60) calendar days thereafter, the water, gas,
electricity and other utilities, common area maintenance reimbursements to
lessors, local business or other transferable license or permit fees and other
similar periodic charges payable with respect to the Micron Contributed Assets
shall be prorated between Micron and the Joint Venture Company, with Micron
bearing such costs and expenses attributable to the period prior to and
including the Closing Date, and the Joint Venture Company bearing such costs
and expenses attributable to the period after the Closing Date.

 

ARTICLE 3.

REPRESENTATIONS AND WARRANTIES

 

3.1                                 Intel
Representations. Intel represents and warrants to Micron as follows:

 

(A)                              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 own, lease and operate its
properties that it currently owns, leases or operates and 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 be
reasonably expected to have a Material Adverse Effect.

 

(B)                                Authorization;
Enforceability. Intel has the requisite corporate power and authority to
enter into this Agreement and the Joint Venture Documents to which it is a
party and to perform its obligations hereunder and thereunder. The
execution and delivery by Intel of this Agreement and the Joint Venture
Documents to which it is a party and the performance by Intel of its
obligations contemplated hereby and thereby 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, and as of the Closing the Joint Venture
Documents to which Intel is a party will have been, duly executed and delivered
by Intel, and this Agreement constitutes, and as of the Closing each of the
Joint Venture Documents to which Intel is a party will constitute, the valid
and binding agreement of Intel, enforceable against Intel in accordance with
their respective 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.

 

(C)                                Governmental
Authorization. Except as disclosed in Schedule 3.1(C) of
the Master Agreement Disclosure Letter, the execution, delivery and performance
by Intel of this Agreement and the Joint Venture Documents to which it is a
party will not require any action by or in respect of, or filing with, any
Governmental Entity.

 

3

 

(D)                               Non-Contravention;
Consents. Except as disclosed in Schedule 3.1(D) of the
Master Agreement Disclosure Letter, the execution, delivery and performance by
Intel of this Agreement and the Joint Venture Documents to which it is a party
do not and will not (1) violate, in any material respect, any Applicable
Law or Order, (2) 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 Intel or any of its subsidiaries
is a party), (3) 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 that will be binding after the Closing on
the Joint Venture Company, or (4) result in the creation or imposition of
any Lien on any asset of Intel, any of its subsidiaries or the Joint Venture
Company that, in the case of clauses (3) or (4), would reasonably be
expected to have, individually or in the aggregate, a Material Adverse Effect.

 

(E)                                 Litigation.
Except as disclosed in Schedule 3.1(E) of the Master Agreement
Disclosure Letter or as previously disclosed in Intel’s public filings pursuant
to the Exchange Act, 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.

 

(F)                                 Brokerage.
Intel has not dealt with any finder, broker, investment banker or financial
advisor in connection with any of the transactions contemplated by this
Agreement or the negotiations looking toward the consummation of such
transactions, and no finder, broker, investment banker or financial advisor is
entitled to any brokerage, finders’ or other fees or commissions 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.

 

3.2                                 Micron
Representations. Micron represents and warrants to Intel as follows:

 

(A)                              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 own, lease and operate its
properties that it currently owns, leases or operates and 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.

 

(B)                                Authorization;
Enforceability. Micron has the requisite corporate power and authority to
enter into this Agreement and the Joint Venture Documents to which it is a
party and to perform its obligations hereunder and thereunder. The
execution and delivery by Micron of this Agreement and the Joint Venture
Documents to which it is a party and the performance by Micron of its
obligations contemplated hereby and thereby have been duly authorized by Micron
and do not violate the terms of the certificate of incorporation or bylaws of
Micron. This 

 

4

 

Agreement has been, and
as of the Closing the Joint Venture Documents to which Micron is a party will
have been, duly executed and delivered by Micron, and this Agreement
constitutes, and as of the Closing each of the Joint Venture Documents to which
Micron is a party will constitute, the valid and binding agreement of Micron,
enforceable against Micron in accordance with their respective 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.

 

(C)                                Governmental
Authorization. Except as disclosed in Schedule 3.2(C) of
the Master Agreement Disclosure Letter, the execution, delivery and performance
by Micron of this Agreement and the Joint Venture Documents to which it is a
party will not require any action by or in respect of, or filing with, any
Governmental Entity.

 

(D)                               Non-Contravention;
Consents. Except as disclosed in Schedule 3.2(D) of the
Master Agreement Disclosure Letter, the execution, delivery and performance by
Micron of this Agreement and the Joint Venture Documents to which it is a party
do not and will not (1) violate, in any material respect, any Applicable
Law or Order, (2) 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), (3) 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 that will be binding after the Closing on
the Joint Venture Company, or (4) result in the creation or imposition of
any Lien on any asset of Micron, any of its subsidiaries or the Joint Venture
Company that, in the case of clauses (3) or (4) would reasonably be
expected to have, individually or in the aggregate, a Material Adverse Effect.

 

(E)                                 Litigation.
Except as disclosed in Schedule 3.2(E) of the Master Agreement
Disclosure Letter or as previously disclosed in Micron’s public filings
pursuant to the Exchange Act, there is no action, suit, arbitration or
administrative or other proceeding or investigation pending or, to Micron’s
knowledge, threatened, against or affecting (1) the Contributed Real
Property or the Other Contributed Property; or (2) 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.

 

(F)                                 Real
Property Contracts.

 

(1)                                  Schedule 3.2(F)(1) of
the Master Agreement Disclosure Letter lists each of the following contracts
and agreements of Micron that are in effect, or that are claimed by Micron as
being in effect, with respect to any of the Contributed Real Property at the
date of this Agreement (collectively, the “Real Property Contracts”):  (a) each instrument creating a Lien on
any of the Contributed Real Property; (b) each policy of fire, liability
and other forms of insurance (excluding title insurance, errors and omissions
insurance and directors and officers 

 

5

 

insurance) held by and/or
covering the Lehi Site; and (c) all contracts and agreements with any
Governmental Entity, to which Micron is a party, relating to the Lehi Site.

 

(2)                                  Except
as disclosed on Schedule 3.2(F)(2) of the Master Agreement
Disclosure Letter, to Micron’s knowledge, each Real Property Contract is in
full force and effect according to its terms.

 

(3)                                  Except
as disclosed on Schedule 3.2(F)(3) of the Master Agreement
Disclosure Letter, Micron is not in breach, or default under, any Real Property
Contract. To Micron’s knowledge, no other party to any Real Property Contract
is in breach thereof or default thereunder. To Micron’s knowledge, no event or
condition has occurred or exists which with the giving of notice or passage of
time or both may become a default under any of the Real Property
Contracts.

 

(G)                                Real
Property.

 

(1)                                  Except
as described in Schedule 3.2(G)(1) of the Master Agreement
Disclosure Letter, there is no violation of any Applicable Law (including,
without limitation, any building, planning or zoning law, but excluding any
Environmental Law that is addressed in Section 3.2(J)) relating to any of
the Contributed Real Property. Micron has received no written notice that any
Governmental Entity has determined that such violations currently exist. In the
event Micron receives, prior to the Closing, notice of any such violations
affecting any of the Contributed Real Property prior to the Closing, Micron
shall promptly notify Intel thereof.

 

(2)                                  Micron
has made available to Intel true and complete copies of the documents identified
in Schedule 3.2(G)(2) of the Master Agreement Disclosure
Letter, which include among others the Municipal Services Agreements, certain
audits prepared for or by Micron, including 
Phase I and Phase II reports, and other specified documents listed in Schedule 3.2(G)(2) of
the Master Agreement Disclosure Letter relating to the Contributed Real
Property.

 

(3)                                  Except
for the Liens set forth on Schedule 3.2(G)(3) of the Master
Agreement Disclosure Letter (collectively, the “Permitted
Liens”), Micron is in peaceful and undisturbed possession of the
Contributed Real Property and there are no contractual restrictions that
preclude or restrict the use thereof for the purposes currently contemplated by
the Joint Venture Company. Micron has received no notice of any pending or, to
the knowledge of Micron, threatened or contemplated action by any Governmental
Entity having the power of eminent domain, which reasonably should be expected
to result in any part of the Contributed Real Property being taken by
condemnation or conveyed in lieu thereof.

 

(4)                                  There
are no material adverse physical conditions affecting any of the Lehi Site, or
any of the facilities, buildings, structures, erections, improvements,
fixtures, fixed assets and personalty of a permanent nature annexed, affixed or
attached to, located on or forming part of any of the Lehi Site that would
cause the Lehi Site or such facilities, buildings, structures, erections,
improvements, fixtures, fixed assets and personalty to be unsuitable for its
respective current uses.

 

(5)                                  Micron
owns fee simple title to the Contributed Real Property free and clear of all
Liens other than Permitted Liens. Micron has not leased any parcel or any
portion of 

 

6

 

any parcel of the
Contributed Real Property to any third party. Micron has not agreed to encumber
any portion of the Contributed Real Property. If Micron has granted a Lien in
favor of any lender upon any portion of the MTV Site, then, within fifteen (15)
days of the execution of this Agreement, Micron agrees to obtain a
non-disturbance agreement from such lender containing terms and conditions
reasonably acceptable to Intel. No prior options or rights of first refusal
have been granted by Micron to any third parties to purchase or lease any
interest in the Contributed Real Property, or any part thereof, which are
effective as of the date hereof. Micron is not indebted to any contractor,
laborer, mechanic, materialman, architect or engineer for work, labor or
services performed or rendered, or for materials supplied or furnished, in
connection with the Lehi Site for which any person could claim a Lien against
the Lehi Site, except as set forth on Schedule 3.2(G)(5) of the
Master Agreement Disclosure Letter.

 

(6)                                  Except
as set forth on Schedule 3.2(G)(6) of the Master Agreement
Disclosure Letter, Micron has received no written notice of any dispute
involving or concerning the location of the boundary lines and corners of any
of the Contributed Real Property, and, to the knowledge of Micron, there are no
encroachments on any of the Contributed Real Property.

 

(7)                                  All
of the personal property listed on Schedule 3.2(G)(7) of the
Master Agreement Disclosure Letter, which Schedule 3.2(G)(7) may be
modified prior to Closing as mutually agreed to by the Parties, is, as of the
date hereof, and will be on the Closing Date, owned by Micron, free and clear
of all Liens, and located on the Contributed Real Property.

 

(8)                                  Schedule 3.2(G)(8) of
the Master Agreement Disclosure Letter accurately identifies the policies of
title insurance, and riders and endorsements, issued effective upon Micron’s
acquisition of fee simple title to the Contributed Real Property (the “Micron Title Insurance Policies”). Micron has provided the
Joint Venture Company with true and complete copies of the Micron Title
Insurance Policies. To Micron’s knowledge, each of the Micron Title Insurance
Policies is, and as of the Closing will be, in full force and effect according
to its terms.

 

(H)                               Approvals,
Obligations, Permits and Licenses.

 

(1)                                  Schedule 3.2(H) of
the Master Agreement Disclosure Letter lists all material Governmental Entity
approvals, permits, licenses or contractual obligations relating to the Lehi
Site that will transfer to or be obtained by the Joint Venture Company.

 

(2)                                  To
the knowledge of Micron, it operates the Contributed Real Property with all
required material Governmental Entity approvals, permits and licenses,
excluding Environmental Permits (which are addressed by Section 3.2(J)),
and, with respect to the Contributed Real Property, is in compliance with all
material terms and has fulfilled, or is timely fulfilling, all material
contractual obligations to any Governmental Entity or its designee.

 

(I)                                    Warranties
and Representations Respecting Water Rights and Water Supply System.

 

(1)                                  Micron
is the sole record and beneficial owner of the Water Rights and the Water
System, which it owns free and clear of Liens.

 

7

 

(2)                                  The
Utah State Division of Water Rights has approved non-use of Water Rights
55-8976 and 55-8981 until August 31, 2008. The Utah Division of Water
Rights has also granted an extension of time for Change Application a19136 to August 31,
2006 within which to submit proof of beneficial use or request a further
extension of time. Water Right No. 55-9159 (A70333) is a pending
unapproved application to appropriate 6 cfs or 2,000 acre feet of water for
non-consumptive use. This application has been protested and is, as of the date
of this Agreement, awaiting an administrative hearing before the Utah State
Engineer.

 

(3)                                  Micron
has received no notice from any third Person of any Lien on the Water Rights or
the Water Supply System.

 

(4)                                  Since
January 1, 1990, to the knowledge of Micron, the Water Rights have been
either continuously, fully and beneficially used, or the subject of an
application for non-use approved by the Utah State Engineer, and Micron has
received no notices from any third party or Governmental Entity asserting any
claim or position to the contrary.

 

(J)                                   Environmental.

 

(1)                                  Except
as set forth on Schedule 3.2(J)(1) of the Master Agreement
Disclosure Letter, there have not been, since the time Micron or any of its
Affiliates have owned the respective Contributed Real Property, any unauthorized
releases of Hazardous Substances on or from the Contributed Real Property that
would constitute a Material Adverse Environmental Effect, regardless of whether
such spills or releases were reported to any Governmental Entity.

 

(2)                                  Except
as set forth on Schedule 3.2(J)(2) of the Master Agreement
Disclosure Letter, there have been no orders, judgments, injunctions, rulings,
decrees, directives, notices of violation or other decisions of any
Governmental Entity against or issued to Micron under or with respect to any
Environmental Laws pertaining to the Contributed Real Property during the
lesser of (a) the last five (5) years and (b) the time Micron or
any of its Affiliates owned the respective Contributed Real Property that would
cause a Material Adverse Environmental Effect; nor is there any pending or, to
the knowledge of Micron, threatened action, suit or proceeding, or, to the
knowledge of Micron, investigation, or inquiry by or before any Governmental
Entity under any Environmental Laws relating to any of the Contributed Real
Property that would cause a Material Adverse Environmental Effect nor, to the
knowledge of Micron, are there any existing grounds on which any such action,
suit, investigation, inquiry or proceeding could reasonably be commenced that
would cause a Material Adverse Environmental Effect.

 

(3)                                  Except
as set forth on Schedule 3.2(J)(3) of the Master Agreement
Disclosure Letter, all notices, permits, licenses or similar authorizations, if
any, required to be obtained or filed by Micron under any Environmental Laws
(collectively, “Environmental Permits”) with
respect to any portion of the Contributed Real Property, including without
limitation, those relating to the treatment, storage, disposal or release of a
Hazardous Substance or solid waste into the environment or construction of
facilities, have been duly obtained or filed, except where the failure to
obtain or file would not cause a Material Adverse Environmental Effect. Micron
is in material compliance with the terms and conditions of all Environmental
Permits with 

 

8

 

respect to the
Contributed Real Property, and all Environmental Permits with respect to the
Contributed Real Property were issued, to the knowledge of Micron, by a
Governmental Entity and have the force and effect of the laws under which they
were issued.

 

(4)                                  Micron
is in compliance with all Environmental Laws with respect to the Contributed
Real Property, except where such noncompliance would not have a Material
Adverse Environmental Effect.

 

(5)                                  Except
as set forth in Schedule 3.2(J)(5) of the Master Agreement
Disclosure Letter, Micron has not received any claim, order, notice, action,
suit, arbitration, or proceeding under Environmental Laws related to Hazardous
Substance generated at or from any of the Contributed Real Property that would
cause a Material Adverse Environmental Effect.

 

(K)                               The
Joint Venture Company. Prior to Closing, the Joint Venture Company will
have been formed as a limited liability company, and immediately prior to
closing, the Joint Venture Company will be validly existing and in good
standing under the laws of the State of Delaware.

 

(L)                                 Capitalization
of the Joint Venture Company. The Joint Venture Company has not engaged in
any operations, made any commitments or acquired any assets prior to the
Closing, except that, immediately prior to Closing, Micron shall be the sole
Member of, and shall hold all of the Interests in the Joint Venture Company. Except
for the Interest held by Micron immediately prior to Closing, and the Interests
to be held by Intel and Micron upon the Closing as contemplated by the
Operating Agreement, at Closing there will be no other securities of the Joint
Venture Company, including outstanding options, warrants, calls, subscriptions,
commitments or plans by the Joint Venture Company to issue any additional
Interests, to make any distributions to its Members or to purchase, redeem or
retire any outstanding Interest, nor will there be outstanding any securities
or obligations that are convertible into or exchangeable for any Interest or
other securities of the Joint Venture Company. Upon the Closing, each of Intel
and Micron will acquire good and valid title to its respective Interest in the
Joint Venture Company, free and clear of all Liens.

 

(M)                            Assigned
Contracts. The Assigned Contracts are listed on Schedule 3.2(M)
of the Master Agreement Disclosure Letter, which Schedule 3.2(M) may be
amended prior to Closing as agreed to by both Parties. True and correct copies
of each Assigned Contract have been provided to Intel. Each Assigned Contract
is a valid, binding and enforceable agreement of Micron and, to the knowledge
of Micron, the other parties thereto. There has not occurred any default under
any Assigned Contract (other than Real Property Contracts, under which there
has been no default) on the part of Micron nor, to the knowledge of
Micron, on the part of the other parties thereto that would reasonably be
expected to have a Material Adverse Effect. No event has occurred which, with
the giving of notice or the lapse of time, or both, would constitute any
default under any Assigned Contract (other than Real Property Contracts) on the
part of Micron nor, to the knowledge of Micron, on the part of the
other parties thereto that would reasonably be expected to have a Material
Adverse Effect. Except as indicated on Schedule 3.2(M) of the
Master Agreement Disclosure Letter, no consent of any party to any Assigned
Contract is required in order to (i) permit the execution, delivery or
performance of this Agreement, (ii) consummate of the transactions
contemplated hereby, or (iii) sell, transfer or deliver the Micron
Contributed Assets. The execution, delivery and performance of this Agreement,
the 

 

9

 

consummation of the
transactions contemplated hereby, the sale, transfer and delivery of the Micron
Contributed Assets and the assumption of the liabilities to be assumed by the
Joint Venture Company will not result in a breach of any of the terms and
provisions of, or constitute a default under, or conflict with, or result in a
modification of, any Assigned Contract, where such breach, default, conflict or
modification would reasonably be expected to have a Material Adverse Effect.

 

(N)                               Brokerage.
Micron has not dealt with any finder, broker, investment banker or financial
advisor in connection with any of the transactions contemplated by this
Agreement or the negotiations looking toward the consummation of such
transactions, and no finder, broker, investment banker or financial advisor is
entitled to any brokerage, finders’ or other fees or commissions 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.

 

(O)                               Contractual
and Governmental Obligations. As of the date immediately prior to Closing,
Micron will be in compliance with all Contractual Obligations with any third
party or Governmental Entity, and of any condition of any license, permit,
consent or approval of a third party to the extent that failure to be in
compliance would reasonably be expected to have, individually or in the
aggregate, a Material Adverse Effect.

 

(P)                                 Infrastructure.
Except as set forth on Schedule 3.2(P) of the Master Agreement
Disclosure Letter, all natural gas, electricity and water delivery
improvements, and all sewer and storm water facilities necessary to serve the
improvements as they currently exist on the Contributed Real Property have been
installed and are currently serving such improvements.

 

3.3                                 Reliance
by the Joint Venture Company. The Parties hereby agree that, to the extent
any of the representations and warranties of Intel and Micron set forth in Section 3.1
and Section 3.2, respectively, relates to any Joint Venture Document to
which the Joint Venture Company is or shall be a party, such representations
and warranties shall be deemed to have been made to the Joint Venture Company; provided, however, that (1) if the
Joint Venture Company pursues any cause of action against Micron for an alleged
breach of representation or warranty, and a court of final jurisdiction denies
the claim made by the Joint Venture Company, Intel shall reimburse the Joint
Venture Company for all costs associated with pursuing such action and (2) if
the Joint Venture Company pursues any cause of action against Intel for an
alleged breach of representation or warranty, and a court of final jurisdiction
denies the claim made by the Joint Venture Company, Micron shall reimburse the
Joint Venture Company for all costs associated with pursuing such action.

 

ARTICLE 4.

COVENANTS

 

4.1                                 Exclusive
Dealing. During the period from the date of this Agreement to the earlier
of the Closing or the termination of this Agreement in accordance with its
terms, neither of the Parties will, nor will they permit any of their
respective subsidiaries or any of their, or their subsidiaries’, respective
officers, directors, employees or agents or other representatives (including
financial advisors, attorneys and consultants), acting on behalf of such Party,
to take any action to enter into any contract or agreement that would be
prohibited under the terms of 

 

10

 

any of the Joint Venture
Documents listed on Schedule 2.4 of the Master Agreement Disclosure
Letter assuming for the purposes of this Section 4.1, such Joint Venture
Documents were in full force and effect, but recognizing that the Joint Venture
Company does not exist as of the date of this Agreement and does not have any
capacity to manufacture NAND Flash Memory Products.

 

4.2                                 Reasonable
Efforts. Each of Intel and Micron will cooperate and use its reasonable
efforts to take, or cause to be taken, all appropriate actions (and to make, or
cause to be made, all filings necessary, proper or advisable under Applicable
Law) to consummate and make effective the transactions contemplated by this
Agreement and the Joint Venture Documents, including its reasonable efforts to
obtain, as promptly as practicable, all licenses, permits, consents, approvals,
authorizations, qualifications and orders of Governmental Entities and parties
to contracts, as are necessary for the consummation of the transactions
contemplated by this Agreement and the Joint Venture Documents and to fulfill
the conditions in Article 5 of this Agreement.

 

4.3                                 Governmental
Filings. Subject to Applicable Laws, prior to the making or submission of
any analysis, appearance, presentation, memorandum, brief, argument, opinion or
proposal by or on behalf of either Party in connection with proceedings under
or relating to the HSR Act or any other applicable Competition Law, Intel and
Micron will consult and cooperate with one another, and consider in good faith
the views of one another, in connection with any such analyses, appearances,
presentations, letters, white papers, memoranda, briefs, arguments, opinions or
proposals. In this regard but without limitation, each Party hereto shall
promptly inform the other of any material communication between such Party
and the Federal Trade Commission, the Antitrust Division of the United States
Department of Justice, or any other federal, foreign or state antitrust or
competition Governmental Entity regarding the transactions contemplated by this
Agreement. Nothing in the Agreement, however, shall require or be construed to
require any Party hereto, in order to obtain the consent or successful
termination of any review of any such Governmental Entity regarding the
transactions contemplated by this Agreement, to (i) sell or hold separate,
or agree to sell or hold separate, before or after the Closing Date, any
assets, businesses or any interests in any assets or businesses, of such Party
or any of its Affiliates (or to consent to any sale, or agreement to sell, any
assets or businesses, or any interests in any assets or businesses), or any
change in or restriction on the operation by such Party of any assets or
businesses, or (ii) enter into any agreement or be bound by any obligation
that, in such Party’s good faith judgment, may have an adverse effect on
the benefits to such Party of the transactions contemplated by this Agreement.

 

4.4                                 Access
to Properties and Records. From the date of this Agreement through the
Closing, Micron shall afford representatives of Intel reasonable access to the
Lehi Site and the MTV Site, and books and records reasonably related to the
contemplated operations of the Joint Venture Company, during normal business
hours, so that Intel has a full opportunity to investigate the Micron
Contributed Assets; provided, however,
that such investigation shall be at reasonable times and upon reasonable notice
and shall not unreasonably disrupt the personnel and operations of Micron.

 

4.5                                 Further
Assurances. From time to time, as and when requested by any Party, the
other Party will execute and deliver, or cause to be executed and delivered,
all such documents and instruments and will take, or cause to be taken, all
such further or other actions, as the 

 

11

 

Parties may reasonably
agree are necessary or desirable to consummate the transactions contemplated by
this Agreement.

 

4.6                                 Transfer
Taxes. Each of the Parties shall pay 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 such
Party or by the Joint Venture Company in connection with the transfer or
conveyance of any property to the Joint Venture Company as contemplated by this
Agreement and the Joint Venture Documents.

 

4.7                                 Confidentiality.
The disclosure and exchange of Confidential Information (as defined in the
CNDA) between the Parties is governed solely by the terms of the CNDA. At the
Closing, the Parties and the Joint Venture Company will sign a confidentiality
agreement governing their respective confidentiality obligations with respect
to the Joint Venture Company and its transactions.

 

4.8                                 Press
Releases. The Parties agree that, following the signing of this Agreement,
the Parties shall issue a joint press release, the text of which shall have
been pre-approved in writing by Micron and Intel. Prior to the issuance of such
joint press release announcing the execution of this Agreement, neither Party
shall make any public disclosure, announcement or statement with respect to
this Agreement, the Joint Venture Documents or the Joint Venture Company or any
of the transactions contemplated by this Agreement or the Joint Venture
Documents. Following the issuance of such joint press release, and subject to
the terms and conditions of the CNDA, each Party shall be free to reuse the
information contained in the joint press release.

 

4.9                                 Legally
Compelled Disclosures. In the event that a Party is requested or becomes
legally compelled (including without limitation, pursuant to securities laws
and regulations) to disclose any of the Joint Venture Documents where such
disclosure would be in contravention of the provisions of this Agreement, the
CNDA or the Confidentiality Agreement, the Party may make such disclosure
but subject to the provisions of this Section 4.9. The Party required to
make such disclosure shall provide the other Party with prompt written notice
of the requirement to make such disclosure before making such disclosure and
will use its reasonable efforts to cooperate fully with the other Party to seek
a protective order, confidential treatment, or other appropriate remedy with
respect to the disclosure. In such event, the disclosing Party shall furnish
for disclosure only that portion of the information that is legally required to
be disclosed and shall exercise its reasonable efforts to obtain reliable
assurance that confidential treatment will be accorded to such information to
the extent reasonably requested by the other Party and to the maximum extent
possible under Applicable Law. The disclosing Party agrees that it will provide
the other Party with drafts of any documents or other filings in which it is
required to disclose this Agreement, the other Joint Venture Documents or any
other confidential information subject to the terms of this Agreement at least
two (2) Business Days prior to the filing or disclosure thereof for any
matter to be filed with the Commission on Form 8-K and at least five (5) Business
Days prior to the filing or disclosure for any other matter required to be
filed with the Commission or any other Governmental Entity, and that it will
make any changes to such materials as reasonably requested by the other Party
to the extent permitted by law or any rules and regulations of the
Commission or any other Governmental Entity, as applicable.

 

12

 

4.10                           Ownership
Interest. Prior to the Closing, Micron shall not transfer or agree to transfer
any interest in the Joint Venture Company to any Person.

 

4.11                           Continuity
and Maintenance of Operations. Commencing with the date first above written
and ending as of the date of Closing, each Party agrees to use reasonable
efforts consistent with past practice and policies to (i) preserve intact
in all material respects that portion of its present business operations
expected to be made available (through services agreements or otherwise) or
contributed to the Joint Venture Company at the time of Closing, (ii) maintain
in all material respects the services of such Party’s employees who are
reasonably expected to render full-time service to the Joint Venture Company as
seconded employees or who are otherwise expected to be an integral part of
the services to be provided by such Party to the Joint Venture Company, and (iii) preserve
in all material respects its relationships with suppliers, licensors,
licensees, and others having material business relationships in connection with
that portion of its business operations expected to be made available (through
services agreements or otherwise) or contributed to the Joint Venture Company
at the time of Closing.

 

4.12                           Certain
Deliveries and Notices. From the date of this Agreement until the Closing,
each Party shall promptly inform in writing the other Party of (i) any
event or occurrence that could be reasonably expected to have a Material
Adverse Effect on its ability to perform its or their obligations under
any of the Joint Venture Documents or in the reasonable opinion of the Party,
the ability of the Joint Venture Company to conduct its business as
contemplated in the Initial Business Plan, or (ii) any breach that cannot
or will not be cured by the Closing or failure to satisfy any condition or
covenant, if such failure cannot or will not be cured by the Closing, contained
herein or in any other Joint Venture Document by such Party.

 

4.13                           Non-solicitation
of Employees.

 

(A)                              During
the Joint Venture Company Non-Solicitation Period and subject to Section 4.13(D),
neither Party shall, without the prior written consent of the other Party,
directly or indirectly recruit or solicit any employee of the Joint Venture
Company or any of its subsidiaries (“Restricted Employees”
for purposes of this subsection (A) and subsection (G)) to leave
his or her employment with the Joint Venture Company or such subsidiary.

 

(B)                                In
addition to the foregoing, during the Facilities Company Employee
Non-Solicitation Period and subject to Section 4.13(D), neither Party
shall, without the prior written consent of the other Party, directly or
indirectly recruit or solicit any employee of a Facilities Company (“Restricted Employees” for purposes of this subsection (B) and
subsection (G)) to leave his or her employment with such Facilities
Company.

 

(C)                                In
addition to the foregoing, during the Facility Employee Non-Solicitation Period
and subject to Section 4.13(D), neither Party shall, without the prior
written consent of the other Party, directly or indirectly recruit or solicit
any employee of a Facility (“Restricted Employees”
for purposes of this subsection (C) and subsection (G)) to leave
his or her employment with such Facility.

 

(D)                               If
the entire Interest held by one Party is purchased by the other Party, or its
designee, (1) the selling Party, for a period of [***] after the closing
of such purchase, shall not, 

 

13

 

without the prior written
consent of the other Party, directly or indirectly recruit or solicit any
employee of the Joint Venture Company, any of its subsidiaries or any
Facilities Company (“Restricted Employees”
for purposes of this subsection (D) and subsection (G)) to leave
his or her employment with the Joint Venture Company, such subsidiary or such
Facilities Company and (2) the obligations of both Parties pursuant to
Sections 4.13(A), 4.13(B) and 4.13(C) shall cease.

 

(E)                                 Prior
to the Closing and for [***] thereafter, neither Party may, without the prior
written consent of the other Party, directly or indirectly recruit or solicit
any employee of the other Party whose name appears on Schedule 4.13(E) of
the Master Agreement Disclosure Letter (“Restricted Employees”
for purposes of this subsection (E) and subsection (G)) to leave
his or her employment with the other Party.

 

(F)                                 Prior
to the first to occur of (1) the termination of this Agreement without the
Closing having occurred, (2) a Liquidating Event or (3) the purchase
by one Party of the entire Interest held by the other Party, neither Party nor
any of either Party’s Affiliates may, without the prior written consent of the
other Party, directly or indirectly recruit or solicit any [***] employed by
the other Party or any of its Affiliates (“Restricted Employees”
for purposes of this subsection (F) and subsection (G)) to leave
his or her employment with the employing Party and join any group, team or
other organization of the soliciting Party engaging in the [***], [***] or
[***] or [***] of [***] (an “[***] Group”). Any
Restricted Employee hired by the hiring Party to work in any of the hiring
Party’s group, team or other organization other than an [***] Group shall not
be transferred to, or consulted with or included in any discussion involving,
[***] or an [***] Group for a period of [***], except that consulting on the
inclusion of [***] into or onto another product that is not a [***] product is
not prohibited; provided, however,
that the foregoing shall not relieve a Restricted Employee of any
confidentiality obligations that he or she may owe to a Party. Notwithstanding
the foregoing provisions of this Section 4.13(F), if the Product Designs
Development Agreement is terminated, the obligations contained in this Section 4.13(F) will
expire [***] after such termination and be of no further force and effect.

 

(G)                                Neither
the placement of employment advertisements or other general solicitation for
employees not specifically targeted to Restricted Employees by any means,
including through the use of hiring agencies or through employees of each Party
who are unaware of the prohibitions against the solicitation of the Restricted
Employees shall be a recruitment or solicitation prohibited by this Section 4.13
provided that any such hiring
agencies and employees are not instructed by persons who knew about the
prohibition on the solicitation of the Restricted Employees to solicit for hire
Restricted Employees. In addition, nothing herein shall prevent either Party
from recruiting, offering to hire or hiring Restricted Employees who contact
the Party on their own initiative, and in such event there shall be no
restriction on where such Restricted Employee may work; provided, however, that the foregoing
shall not relieve a Restricted Employee of any confidentiality obligations that
he or she may owe to a Party. If a Party inadvertently violates the
prohibition against the solicitation of Restricted Employees, such Party must,
as soon as it is aware it has committed a violation of this section, either
withdraw any offer to the solicited individual or ensure that such person, if hired,
is subject to the restrictions described in the second to last sentence of Section 4.13(F),
in which event such inadvertent action shall not be deemed to be a breach of
this Section 4.13 so long as there is no repetitive pattern of such
actions.

 

14

 

4.14                           Initial
Business Plan. The Parties shall work in good faith to prepare a mutually
acceptable Initial Business Plan prior to the Closing.

 

4.15                           Title.
Micron covenants that during the term of this Agreement, Micron, without cost
to the Joint Venture Company, will diligently present and prosecute claims
under the Micron Title Insurance Policies with respect to any claim, action,
loss or damage that the Joint Venture Company may assert against Micron,
to the extent the Joint Venture Company’s claims against Micron are covered by
the Micron Title Insurance Policies. Micron agrees to pay over to the Joint
Venture Company any proceeds paid to Micron in respect of Micron’s claims
asserted under the Micron Title Insurance Policies; provided however, that
notwithstanding anything herein to the contrary, the right granted to the Joint
Venture Company under this Section 4.15 to receive such payment or the
Joint Venture Company’s receipt of such payment shall not in any manner limit
any rights or remedies the Joint Venture Company may otherwise have
against Micron with respect to claims to which right of payment or payment is
attributable, except to the extent of any amounts actually received under the
Micron Title Insurance Policies.

 

4.16                           Water
Rights.

 

(A)                              Change
and Perfection. Micron agrees to publicly support, and shall not protest,
any application for the change of the Water Rights for use in connection with
the Lehi Land, and for the business of the Joint Venture Company thereon, to
the extent the proposed change implements and is consistent with the terms and
conditions of the Reciprocal Easement and License Agreement, and Micron and
further agrees to cooperate with the Joint Venture Company in perfecting any such
pending or future change application, including without limitation, Change
Application No. a19136.

 

(B)                                Report
of Water Right Conveyance. Upon occurrence of the Transfer, Micron agrees
to cooperate with the Joint Venture Company in the preparation of a Report of
Water Right Conveyance relating to the Water Rights and the processing thereof
with the Utah Division of Water Rights.

 

4.17                           Completion
of Work. Commencing promptly after the date hereof, Micron shall use
commercially reasonable efforts to cause to be prepared a survey in accordance
with Section 5 of the reciprocal easement agreement that is attached to
the Lehi Lease, and to complete the Subdivision Work (as defined in the Lehi
Lease) in accordance with Section 1.2 of the Lehi Lease.

 

4.18                           Tax
Matters. The Parties shall cooperate in a good faith, commercially
reasonable manner to maximize tax benefits or minimize tax costs of the Joint
Venture Company (and any Facilities Company), and of the Parties or their
Affiliates with respect to the activities of the Joint Venture Company (and any
Facilities Company), consistent with the overall goals of the Joint Venture
Documents. Such cooperation may include, but shall not be limited to,
amending one or more of the Joint Venture Documents or seeking a ruling from a
taxing authority; provided, however,
that neither of the Parties shall be required to consent to amend any of the
Joint Venture Documents or take other action that such Party reasonably
determines is not commercially reasonable, and; provided, further, that if one
Party (and its Affiliates) is not likely (based on reasonable assumptions and
projections) to benefit directly or indirectly from an action 

 

15

 

requested by the other
Party pursuant to this Section 4.18, then the Parties shall use good faith
commercially reasonable efforts to enter into an agreement requiring the
requesting Party to reimburse the other Party for the reasonable out-of-pocket
costs incurred by that other Party to effect the change desired by the
requesting Party, and the other Party shall not be required to incur such costs
until such an agreement has been entered into.

 

4.19                           Supply
Agreements. The Parties acknowledge that, at the Closing, they each will
enter into Supply Agreements with the Joint Venture Company pursuant to which
each such Member shall purchase from the Joint Venture Company, and the Joint
Venture Company shall supply to each such Member, a percentage of the Joint
Venture Company’s output of Products equal to such Member’s Sharing Interest. The
Parties will work in good faith to promptly determine the specific methodology
for the sharing of such Joint Venture Company output based upon such Sharing
Interest, which, if determined before the Closing, will be implemented
immediately following Closing.

 

ARTICLE 5.

CLOSING

 

5.1                                 Closing.
The closing of the transactions contemplated by this Agreement (the “Closing”) will take place at the offices of Gibson, Dunn &
Crutcher LLP, 1881 Page Mill Road, Palo Alto, California 94304 or at such
other place as the Parties may agree and shall occur on or before the
third (3rd) Business Day after all of the conditions set forth in Sections 5.2,
5.3 and 5.4 are first satisfied or properly waived, except as mutually agreed
by the Parties, including any such agreement made to facilitate Closing at the
end of Micron’s fiscal month.

 

5.2                                 Conditions
to the Obligations of the Parties. The respective obligations of the
Parties under this Agreement to consummate the transactions contemplated hereby
will be subject to the satisfaction, at or prior to Closing, of the conditions
that:

 

(A)                              there
shall not have been entered a preliminary or permanent injunction, temporary
restraining order or other judicial or administrative order or decree of any
Governmental Entity (an “Order”) the
effect of which prohibits the Closing, and no litigation, arbitration,
investigation or administrative proceeding seeking to enjoin, restrict or
prevent the consummation of the transactions contemplated by this Agreement or
any of the Joint Venture Agreements, or seeking to prohibit or limit the
ability of the Joint Venture Company, Intel or Micron to conduct the business
contemplated by the Joint Venture Agreements, shall be pending before any
Governmental Entity;

 

(B)                                the
Parties shall have caused the Joint Venture Company to obtain all property
insurance and other insurance policies, effective as of the Closing, as set
forth on Schedule 5.2(B) of the Master Agreement Disclosure
Letter, which insurance coverage may be provided through one or more
insurance policies of a Member;

 

(C)                                the
Annexation and Development Agreement and the Economic Development Agreement
each shall have been assigned to, and assumed by, the Joint Venture Company;

 

(D)                               all
required waiting periods under the HSR Act shall have expired or been
terminated, any filings or approvals required to be made or obtained under any
foreign antitrust, competition or fair trade laws or regulations shall have
been made or obtained, and any required waiting periods under any foreign
antitrust, 

 

16

 

competition or fair trade
laws or regulations shall have expired or been terminated; in each case without
the imposition of any conditions;

 

(E)                                 no
statute, rule, regulation, executive order, decree, ruling or injunction shall
have been enacted, entered, promulgated or enforced by any United States
federal or state or foreign court or United States federal or state or foreign
Governmental Entity that prohibits, restrains, enjoins or restricts the
consummation of the transactions contemplated by this Agreement or the Joint
Venture Documents; and

 

(F)                                 the
Parties shall have approved the Initial Business Plan, including the [***]
Budget and the [***] Budget, of the Joint Venture Company through the first
three (3) years of operation of the Joint Venture Company.

 

5.3                                 Conditions
to the Obligations of Intel. The obligations of Intel under this Agreement
to consummate the transactions contemplated hereby will be further subject to
the satisfaction, at or prior to the Closing, of all of the following
conditions, any one or more of which may be waived in writing by Intel at
its option:

 

(A)                              Accuracy
of Representations and Warranties. The representations and warranties of
Micron contained in this Agreement that are subject to qualifications and
exceptions contained therein relating to materiality, Material Adverse Effect
or Material Adverse Environmental Effect shall be true and correct, and all
other representations and warranties of Micron contained in this Agreement
shall be true and correct in all material respects, both on and as of the date
of this Agreement and at and as of the Closing (with the same force and effect
as if made anew at and as of the Closing), except to the extent that such
representations and warranties speak as of another date, in which case such
representations and warranties shall be true and correct as of such other date.
For the purposes of this Section 5.3(A) only, the term “Material Adverse Environmental Effect”
as used in a qualification or exception to any representations and warranties
contained in this Agreement shall be deemed to mean “Material Adverse Effect,” as defined
in this Agreement.

 

(B)                                Compliance
with Covenants. All covenants of Micron contained in this Agreement and the
Joint Venture Documents that are to be performed and complied with by Micron at
or before the Closing shall have been performed and complied with in all
material respects.

 

(C)                                Consents.
Each of the governmental and other approvals, consents or waivers identified
with an asterisk on Schedule 3.2(C) and Schedule 3.2(D) of
the Master Agreement Disclosure Letter as being a condition of the Closing,
shall have been obtained on terms and conditions that are reasonably
satisfactory to Intel.

 

(D)                               Delivery
of Agreements by or on Behalf of Micron. Micron shall have duly executed
and delivered to the Joint Venture Company or Intel, as the case may be,
each of the Joint Venture Documents to which Micron is a party, and each such
Joint Venture Document shall be in full force and effect without any event
having occurred or condition existing that 

 

17

 

constitutes, or with the
giving of notice or the passage of time (or both) would constitute, a material
default under or material breach of such Joint Venture Document by Micron.

 

(E)                                 Initial
Capital Contribution. Micron shall have made its initial Capital
Contribution to the Joint Venture Company as contemplated in Section 2.1(B) of
the Operating Agreement.

 

(F)                                 Formation
of Joint Venture Company. Micron shall have formed the Joint Venture
Company as a limited liability company under the laws of the State of Delaware,
and the Joint Venture Company shall be validly existing and in good standing as
of the Closing.

 

(G)                                Approval
of Intel Executive Officer. Micron shall have consented to the individual
seconded by Intel to serve as the Joint Venture Company’s initial Intel
Executive Officer in accordance with Section 8.1 of the Operating
Agreement.

 

(H)                               Bills
of Conveyance. Micron shall have delivered to the bills of sale and
conveyance listed on Schedule 5.3(H) of the Master Agreement
Disclosure Letter, each duly executed by Micron.

 

5.4                                 Conditions
to Obligations of Micron. The obligations of Micron under this Agreement to
consummate the transactions contemplated hereby will be further subject to the
satisfaction, at or prior to the Closing, of all of the following conditions,
any one or more of which may be waived in writing by Micron at its option:

 

(A)                              Accuracy
of Representations and Warranties. The representations and warranties of
Intel contained in this Agreement that are subject to qualifications and
exceptions contained therein relating to materiality or Material Adverse Effect
shall be true and correct, and all other representations and warranties of
Intel contained in this Agreement shall be true and correct in all material
respects, both on and as of the date of this Agreement and at and as of the
Closing (with the same force and effect as if made anew at and as of the
Closing), except where such failure to be true and correct will not result in a
Material Adverse Effect and except to the extent that such representations and
warranties speak as of another date, in which case such representations and
warranties shall be true and correct as of such other date.

 

(B)                                Compliance
with Covenants. All covenants of Intel contained in this Agreement and the
Joint Venture Documents that are to be performed and complied with by Intel at
or before the Closing shall have been performed and complied with in all
material respects.

 

(C)                                Consents.
Each of the governmental and other approvals, consents or waivers identified
with an asterisk on Schedule 3.1(D) of the Master Agreement
Disclosure Letter as being a condition of the Closing, shall have been obtained
on terms and conditions reasonably satisfactory to Micron.

 

(D)                               Delivery
of Agreements by or on Behalf of Intel. Intel shall have duly executed and
delivered to the Joint Venture Company or Micron, as the case may be, each
of the Joint Venture Documents to which Intel is a party, and each such Joint
Venture Document shall be in full force and effect without any event having
occurred or condition existing that constitutes, or 

 

18

 

with the giving of notice
or the passage of time (or both) would constitute, a material default under or
material breach of such Joint Venture Document by Intel.

 

(E)                                 Initial
Capital Contribution. Intel shall have made its initial Capital Contribution
to the Joint Venture Company as contemplated in Section 2.1(A) of the
Operating Agreement.

 

(F)                                 Approval
of Micron Executive Officer. Intel shall have consented to the individual
seconded by Micron to serve as the Joint Venture Company’s initial Micron
Executive Officer in accordance with Section 8.2 of the Operating
Agreement.

 

5.5                                 Closing
Deliverables of Micron. At the Closing, Micron shall deliver or cause to be
delivered:

 

(A)                              to
the Joint Venture Company or Intel, as the case may be, counterparts of
each of the Joint Venture Documents to which Micron is a party, each duly
executed by Micron;

 

(B)                                to
Intel, a certificate of Micron, dated as of the Closing Date and signed by an
authorized officer of Micron, certifying that the conditions set forth in
Sections 5.3(A), (B) and (C) have been satisfied;

 

(C)                                to
Intel, a certified copy of the certificate of formation of the Joint Venture
Company filed in the office of the Delaware Secretary of State, in a form agreed
to between the Parties; and

 

(D)                               to
Intel, a certificate of good standing, dated as of the Closing Date, as to the
good standing of the Joint Venture Company.

 

5.6                                 Closing
Deliverables of Intel. At the Closing, Intel shall deliver or cause to be
delivered:

 

(A)                              to
the Joint Venture Company or Micron, as the case may be, each of the Joint
Venture Documents to which Intel is a party, duly executed by Intel;

 

(B)                                to
Micron, a certificate of Intel, dated as of the Closing Date and signed by an
authorized officer of Intel, certifying that the conditions set forth in
Sections 5.4(A), (B) and (C) have been satisfied; and

 

(C)                                to
the Joint Venture Company, Intel’s initial Capital Contribution to the Joint
Venture Company as contemplated in Section 2.1(A) of the Operating
Agreement.

 

ARTICLE 6.

INDEMNIFICATION

 

6.1                                 Survival.

 

(A)                              Survival
of Covenants. The covenants and agreements of the Parties contained in this
Agreement or in any certificates or other writing delivered pursuant hereto or
thereto will, 

 

19

 

unless specifically
stated otherwise in this Agreement or certificates or other writings, survive
the Closing and the delivery of the Lehi Deed.

 

(B)                                Survival
of Representations and Warranties. The certifications, representations and
warranties made by the Parties to this Agreement (and in the certificates
referred to in Section 5.5(B) and Section 5.6(B)) shall survive
the Closing until the second anniversary of the Closing Date (except for the
representations and warranties contained in Sections 3.2 (I) and (J), which
shall survive the Closing and the Delivery of the Lehi Deed until the fourth
anniversary of the Closing Date).

 

6.2                                 Indemnification.

 

(A)                              Intel
will indemnify, defend and hold harmless Micron, Micron’s subsidiaries and the
Joint Venture Company and their officers, directors, employees and agents
against any and all liabilities, damages, losses, costs and expenses (including
reasonable attorneys’ and consultants’ fees and expenses) (collectively, “Losses”), incurred or suffered by them as a result of  (1) any failure to be true or correct of
any representation or warranty made by Intel or any of its officers, directors,
employees or agents in this Agreement or any of the certificates or other
writings (other than the Joint Venture Documents) delivered at Closing pursuant
to this Agreement (where representations and warranties qualified by references
to materiality, Material Adverse Effect or Material Adverse Environmental
Effect are to be interpreted as though they were not so qualified), provided a claim therefor is asserted no
later than sixty (60) days after the end of the survival period therefor, (2) any
failure to perform or comply with any covenant or agreement of Intel in
this Agreement, or (3) any liabilities, debts, obligations or duties of
Intel that are not expressly assumed by the Joint Venture Company under this
Agreement or another Joint Venture Document and that are outside the scope of
any representation or warranty of Intel that is the subject of the
indemnification obligation set forth in Section 6.2(A)(1) ; provided, however, that (x) Intel shall
not be liable under Section 6.2(A)(1) until aggregate Losses as a
result of such failures exceed $[***], at which point Intel shall be liable
only for the amount of such Losses in excess of $[***]; and (y) Intel’s
aggregate liability under Section 6.2(A)(1) for Losses that exceed
$[***] shall not exceed $[***]. In addition, all of Intel’s indemnification
obligations under Section 6.2(A)(1) and 6.2(A)(3) will terminate
on the [***] anniversary of the Closing Date.

 

(B)                                Micron
will indemnify, defend and hold harmless Intel, Intel’s subsidiaries and the
Joint Venture Company and their officers, directors, employees and agents
against any and all Losses incurred or suffered by them as a result of (1) any
failure to be true or correct of any representation or warranty made by Micron
or any of its officers, directors, employees or agents in this Agreement or any
of the certificates or other writings (other than the Joint Venture Documents)
delivered at Closing pursuant to this Agreement (where representations and
warranties qualified by references to materiality, Material Adverse Effect or
Material Adverse Environmental Effect are to be interpreted as though they were
not so qualified), provided a claim therefor is asserted no later than sixty
(60) days after the end of the survival period therefor, (2) any failure
to perform or comply with any covenant or agreement of Micron in this
Agreement, (3) any violation of any Environmental Laws arising from or
relating to conditions existing or events occurring on any of the Contributed
Property or the Micron Retained Property prior to the Closing Date, or (4) any
liabilities, debts, obligations or duties of Micron that are not 

 

20

 

expressly assumed by the
Joint Venture Company under this Agreement or another Joint Venture Document
and that are outside the scope of any representation or warranty of Micron that
is the subject of the indemnification obligation set forth in Section 6.2(B)(1) and
outside the scope of the environmental indemnity set forth in Section 6.2(B)(3);
provided, however, that (x)
Micron shall not be liable under Section 6.2(B)(1) or Section 6.2(B)(3) until
aggregate Losses as a result of such failures exceed $[***], at which point
Micron shall be liable only for the amount of such Losses in excess of $[***];
and (y) Micron’s aggregate liability under Sections 6.2(B)(1) and Section 6.2(B)(3) for
Losses that exceed $[***] shall not exceed $[***]. In addition, all of Micron’s
indemnification obligations under Section 6.2(B)(1), Section 6.2(B)(3) and
Section 6.2(B)(4) will terminate on the [***] anniversary of the
Closing Date.

 

6.3                                 Procedures.

 

(A)                              General.
Promptly after the receipt by any Party who or which is entitled to seek
indemnification under Section 6.2 (an “Indemnified
Party”) of a notice of any Third Party Claim that may be
subject to indemnification under Section 6.2, such Indemnified Party shall
give written notice of such Third Party Claim to the Party against whom
indemnification is sought (the “Indemnifying Party”),
stating in reasonable detail the nature and basis of each claim made in the
Third Party Claim and the amount thereof, to the extent known, along with
copies of the relevant documents received by the Indemnified Party evidencing
the Third Party Claim and the basis for indemnification sought. Failure of the
Indemnified Party to give such notice shall not relieve the Indemnifying Party
from liability on account of this indemnification, except if and only to the
extent that the Indemnifying Party is actually prejudiced thereby. Thereafter,
the Indemnified Party shall deliver to the Indemnifying Party, promptly after
the Indemnified Party’s receipt thereof, copies of all notices and documents
(including court papers) received by the Indemnified Party relating to the
Third Party Claim. The Indemnifying Party shall have the right to assume the
defense of the Indemnified Party with respect to the Third Party Claim upon written
notice to the Indemnified Party delivered within thirty (30) days after receipt
of the particular notice from the Indemnified Party.

 

(B)                                So
long as the Indemnifying Party has assumed the defense of the Third Party Claim
in accordance herewith and notified the Indemnified Party in writing thereof, (i) the
Indemnified Party may retain separate co-counsel at its sole cost and
expense and participate in the defense of the Third Party Claim, it being
understood that the Indemnifying Party shall pay all reasonable costs and
expenses of counsel for the Indemnified Party after such time as the
Indemnified Party has notified the Indemnifying Party of such Third Party Claim
and prior to such time as the Indemnifying Party has notified the Indemnified
Party that it has assumed the defense of such Third Party Claim, (ii) the
Indemnified Party shall not file any papers or, other than in connection with a
settlement of the Third Party Claim, consent to the entry of any judgment
without the prior written consent of the Indemnifying Party (not to be
unreasonably withheld, conditioned or delayed) and (iii) the Indemnifying
Party will not consent to the entry of any judgment or enter into any
settlement with respect to the Third Party Claim (other than a judgment or settlement
that is solely for money damages and is accompanied by a release of all
indemnifiable claims against the Indemnified Party) without the prior written
consent of the Indemnified Party (not to be unreasonably withheld, conditioned
or delayed). Whether or not the Indemnifying Party shall have assumed the
defense of the Indemnified Party for a Third Party Claim, such Indemnifying
Party shall not be obligated to indemnify and hold harmless the 

 

21

 

Indemnified Party
hereunder for any consent to the entry of judgment or settlement entered into
with respect to such Third Party Claim without the Indemnifying Party’s prior
written consent, which consent shall not be unreasonably withheld, conditioned
or delayed.

 

(C)                                In
the case of any Third Party Claim where the Indemnifying Party reasonably
believes that it would be appropriate to settle such Third Party Claim using
equitable remedies (i.e., remedies involving the future activity and conduct of
the Joint Venture Company), the Indemnifying Party and the Indemnified Party
shall work together in good faith to agree to a settlement; provided, however, that no Party shall be
under any obligation to agree to any such settlement.

 

(D)                               Any
Direct Claim by an Indemnified Party against an Indemnifying Party will be
asserted by giving the Indemnifying Party reasonably prompt written notice
thereof, but in any event not later than thirty (30) days after the Indemnified
Party becomes aware of the facts giving rise to such Direct Claim. Failure of
the Indemnified Party to give such notice shall not relieve the Indemnifying
Party from liability on account of this indemnification, except if and only to
the extent that the Indemnifying Party is actually prejudiced thereby. Such notice
by the Indemnified Party will describe the Direct Claim in reasonable detail
and will indicate the estimated amount, if reasonably practicable, of Losses
that have been or may be sustained by the Indemnified Party. The
Indemnifying Party will have a period of ten (10) Business Days within
which to respond in writing to such Direct Claim. If the Indemnifying Party
does not so respond within such ten (10) Business Day period, the
Indemnifying Party will be deemed to have rejected such claim, in which event
the Indemnified Party will be free to pursue such remedies as may be
available to the Indemnified Party on the terms and subject to the provisions
of this Agreement.

 

6.4                                 Specific
Performance. The Parties agree that irreparable damage will result if this
Agreement is not performed in accordance with its terms, and the Parties agree
that any damages available under the indemnification provisions or at law for a
breach of this Agreement would not be an adequate remedy. Therefore, the
provisions hereof and the obligations of the parties hereunder shall be
enforceable in a court of equity, or other tribunal with jurisdiction, by a
decree of specific performance, and appropriate injunctive relief may be
applied for an granted in connection therewith.

 

6.5                                 Treatment
of Indemnification Payments; Insurance Recoveries. Any indemnity payment
under this Article 6 shall be decreased by any amounts actually recovered
by the Indemnified Party under third party insurance policies with respect to
such Loss (net of any premiums paid by such Indemnified Party under the
relevant insurance policy), each Party agreeing (i) to use all reasonable
efforts to recover all available insurance proceeds and (ii) to the extent
that any indemnity payment under this Article 6 has been paid by the
Indemnifying Party to the Indemnified Party prior to the recovery by the
Indemnified Party of such insurance proceeds, such amounts actually recovered
by the Indemnified Party shall be promptly paid to the Indemnifying Party.

 

6.6                                 Certain
Additional Procedures. The Indemnified Party shall cooperate and assist the
Indemnifying Party in determining the validity of any Third Party Claim for
indemnity by the Indemnified Party and in otherwise resolving such matters. The
Indemnified Party shall 

 

22

 

cooperate in the defense
by the Indemnifying Party of each Third Party Claim (and the Indemnified Party
and the Indemnifying Party agree with respect to all such Third Party Claims
that a common interest privilege agreement exists between them), including by (i) permitting
the Indemnifying Party to discuss the Third Party Claim with such officers,
employees, consultants and representatives of the Indemnified Party as the
Indemnifying Party reasonably requests, (ii) providing to the Indemnifying
Party copies of documents and samples of products as the Indemnifying Party
reasonably requests in connection with defending such Third Party Claim, (iii) preserving
all properties, books, records, papers, documents, plans, drawings, electronic
mail and databases relating to matters pertinent to the Third Party Claim and
under the Indemnified Party’s custody or control in accordance with such Party’s
corporate documents retention policies, or longer to the extent reasonably
requested by the Indemnified Party, (iv) notifying the Indemnifying Party
promptly of receipt by the Indemnified Party of any subpoena or other third
party request for documents or interviews and testimony, and (v) providing
to the Indemnifying Party copies of any documents produced by the Indemnified
Party in response to or compliance with any subpoena or other third party
request for documents. In connection with any claims, except to the extent
inconsistent with the Indemnified Party’s obligations under Applicable Law and
except to the extent that to do so would subject the Indemnified Party or its
employees, agents or representatives to criminal or civil sanctions, and unless
ordered by a court to do otherwise, the Indemnified Party shall not produce documents
to a third party until the Indemnifying Party has been provided a reasonable
opportunity to review, copy and assert privileges covering such documents.

 

6.7                                 Remedies.
Prior to the Closing Date, specific performance shall be the Parties’ sole and
exclusive remedy under this Agreement, except for breaches of Section 4.7.
From and after the Closing Date, specific performance and the indemnification
remedies set forth in Section 6.2 shall be the Parties’ sole and exclusive
remedies under this Agreement, except for breaches of Section 4.7. Such
remedies and all other remedies provided for in this Agreement shall, however,
be cumulative and not exclusive.

 

ARTICLE 7.

TERMINATION

 

7.1                                 Termination.

 

(A)                              This
Agreement may be terminated at any time prior to the Closing:

 

(1)                                  by
either Party if the Closing shall not have been occurred by February 28,
2006; provided, however, that
neither Party may terminate this Agreement pursuant to this Section 7.1(A)(1) if
the Closing shall not have occurred by such date by reason of the failure of
such Party or any of its Affiliates to perform in all material respects
any of its or their respective covenants or agreements contained in this
Agreement;

 

(2)                                  by
the mutual written consent of the Parties;

 

(3)                                  by
Intel, if there has been a breach by Micron of any covenant, representation or
warranty contained in this Agreement that has resulted in a Material Adverse
Effect or has prevented the satisfaction of any condition to the obligations of
Intel, and such 

 

23

 

breach has not been
waived by Intel or cured by Micron, within thirty (30) days after written
notice thereof from Intel (or such longer period as is necessary to effect a
cure of the breach, so long as Micron diligently attempts to effect a cure
throughout such period and such period does not extend beyond February 28,
2006); or

 

(4)                                  by
Micron, if there has been a breach by Intel of any covenant, representation or
warranty contained in this Agreement that has resulted in a Material Adverse
Effect or has prevented the satisfaction of any condition to the obligations of
Micron, and such breach has not been waived by Micron or cured by Intel, within
thirty (30) days after written notice thereof from Micron (or such longer period
as is necessary to effect a cure of the breach, so long as Intel diligently
attempts to effect a cure throughout such period and such period does not
extend beyond February 28, 2006).

 

(B)                                If
this Agreement is terminated pursuant to Section 7.1(A), all further
obligations of the Parties under this Agreement (other than pursuant to Section 4.7
and Articles 6, and 8, which will continue in full force and effect) will
terminate without further liability or obligation of either Party to the other
Party hereunder; provided, however,
that no Party will be released from liability hereunder if this Agreement is
terminated and the transactions abandoned by reason of (1) failure of such
Party to have performed its material obligations under this Agreement or (2) any
material misrepresentation made by such Party of any matter set forth in this
Agreement.

 

ARTICLE 8.

MISCELLANEOUS

 

8.1                                 Limitation
of Liability. SUBJECT TO SECTION 8.2, IN NO EVENT SHALL EITHER PARTY
BE LIABLE TO THE OTHER PARTY OR ANY OTHER INDEMNIFIED PARTY FOR ANY SPECIAL,
CONSEQUENTIAL, INCIDENTAL OR OTHER INDIRECT DAMAGES OR ANY PUNITIVE OR
EXEMPLARY DAMAGES ARISING OUT OF OR IN CONNECTION WITH THIS AGREEMENT, WHETHER
SUCH DAMAGES ARE BASED ON BREACH OF CONTRACT, TORT (INCLUDING NEGLIGENCE) OR
OTHER THEORY OF LIABILITY, AND EVEN IF A PARTY HAS BEEN ADVISED OF THE
POSSIBILITY OF SUCH DAMAGES.

 

8.2                                 Exclusions
and Mitigation. Sections 8.1 and 6.2 will not apply to either Party’s
breach of Section 4.7. Each Party shall have a duty to use reasonable
efforts to mitigate damages for which the other Party is responsible. No Member
shall be entitled to recover Losses for the diminution in value of its interest
in the Joint Venture Company resulting from any event, circumstance or
occurrence for which the Joint Venture Company is pursuing and is entitled to
indemnification hereunder for the full amount of its Losses arising from such
event, circumstance or occurrence.

 

8.3                                 Notices.
All notices and other communications hereunder shall be in writing and shall be
deemed given upon (A) transmitter’s confirmation of a receipt of a
facsimile transmission, (B) confirmed delivery by a standard overnight
carrier or when delivered by hand, (C) the expiration of five (5) Business
Days after the day when mailed in the United States by 

 

24

 

certified or registered
mail, postage prepaid, or (D) delivery in person, addressed at the
following addresses (or at such other address for a party as shall be specified
by like notice):

 

(A)                              if
to Intel:

 

Intel Corporation

 

2200
Mission College Blvd.

Mailstop SC4-203

Santa Clara, CA  95054

Attention:  General Counsel

Facsimile:  (408) 653-8050

 

with a copy to:

 

Intel
Corporation

2200 Mission College Blvd.

Mailstop RN6-46

Santa Clara, CA  95054

Attention:  [***]

Facsimile:  [***]

 

(B)                                if
to Micron:

 

Micron
Technology, Inc. 

8000 S. Federal Way

Mail Stop 1-507

Boise, ID  83716

Attn:  General Counsel

Facsimile:  (208) 368-4537

 

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

 

8.5                                 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 Party.

 

8.6                                 Third
Party Rights.

 

(A)                              The
Parties agree that the Joint Venture Company shall be a third party beneficiary
to the agreements made hereunder by the Parties, and the Joint Venture Company 

 

25

 

shall have the right to
enforce such agreements directly to the extent it deems such enforcement
necessary or advisable to protect its rights hereunder.

 

(B)                                Nothing
in this Agreement, whether express or implied, is intended or shall be
construed to confer, directly or indirectly, upon or give to any Person, other
than the Parties hereto and the Joint Venture Company, any legal or equitable
right, remedy or claim under or in respect of this Agreement or any covenant,
condition or other provision contained herein.

 

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

 

8.8                                 Jurisdiction;
Venue. Any suit, action or proceeding seeking to enforce any provision of,
or based on any matter arising out of or in connection with, this Agreement
shall be brought in a state or federal court 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.

 

8.9                                 Dispute
Resolution.

 

(A)                              All
disputes between the Parties over a purported breach of this Agreement (each, a
“Dispute”), shall be resolved as
follows:  the Parties shall first submit
the matter to the chief executive officers (or other senior executives
officers) of each of the Parties by providing notice of the Dispute to the
Parties. The chief executive officers (or other senior executives officers)
shall then make a good faith effort to resolve the Dispute. If they are unable
to resolve the Dispute within ten (30) days of receiving notice of the Dispute
(during which thirty-day period, the chief executive officers (or other senior
executive officers) shall seek in good faith to hold at least three (3) meetings
at which they shall make a good faith effort to resolve the Dispute), then a
civil action with respect to the Dispute may be commenced, but only after
the matter has been submitted to JAMS for mediation as contemplated by Section 8.9(B).

 

(B)                                If
there is a Dispute, either Party may commence mediation by providing to
JAMS and the other Party a written request for mediation, setting forth the
subject of the Dispute and the relief requested. The Party will cooperate with
JAMS and with one another in selecting a mediator from JAMS panel of neutrals,
and in scheduling the mediation proceedings. The Parties covenant that they
will participate in the mediation in good faith, and that they will share
equally in its costs. All offers, promises, conduct and statements, whether
oral or written, made in the course of the mediation by any of the Parties, their
agents, employees, experts and attorneys, and by the mediator and any JAMS
employees, are confidential, privileged and inadmissible for any purpose,
including impeachment, in any litigation or other proceeding involving the
Parties, provided that evidence that is otherwise admissible or discoverable
shall not be rendered inadmissible or non-discoverable as a result of its use
in the mediation. Either Party may seek 

 

26

 

equitable relief prior to
the mediation to preserve the status quo pending the completion of that
process. Except for such an action to obtain equitable relief, neither Member may commence
a civil action with respect to a Dispute until after the completion of the
initial mediation session, or 45 days after the date of filing the written
request for mediation, whichever occurs first. Mediation may continue
after the commencement of a civil action, if the Parties so desire. The
provisions of this Section may be enforced by any court of competent
jurisdiction, and the Party seeking enforcement shall be entitled to an award
of all costs, fees and expenses, including attorneys’ fees, to be paid by the
Party against whom enforcement is ordered.

 

8.10                           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.

 

8.11                           Entire
Agreement. This Agreement, together with the Appendices and Schedules
hereto and the agreements and instruments expressly provided for herein,
constitute the entire agreement of the Parties hereto with respect to the
subject matter hereof and supersede all prior agreements and understandings,
oral and written, between the Parties hereto with respect to the subject matter
hereof.

 

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

 

8.13                           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.

 

8.14                           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 and the Joint
Venture Documents.

 

8.15                           Certain
Interpretive Matters.

 

(A)                              Unless
the context requires otherwise, (1) all references to Sections, Articles
or the Appendix are to Sections, Articles or the Appendix of or to this
Agreement,  (2) words in the
singular include the plural and visa versa, (3) the term “including” means “including
without limitation,” and (4) the
terms “herein,” “hereof,”
“hereunder” and words of similar import
shall mean references to this Agreement as a whole and not to any individual section or
portion hereof. All references to “$”
or dollar amounts will be to lawful currency of the United States of America. All
references to “$” or dollar amounts shall be to
precise amounts and not rounded up or down. All references to “day” or “days” will mean
calendar days.

 

27

 

(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.

 

[SIGNATURE PAGE FOLLOWS]

 

28

 

IN WITNESS WHEREOF, this Agreement has been executed
and delivered as of the date first above written.

 

	
   

  	
  INTEL CORPORATION

  	 

	
   

  	
   

  	 

	
   

  	
   

  	 

	
   

  	
  By:

  	
  /s/ ARVIND SODHANI

  	
   

  
	
   

  	
   

  	 

	
   

  	
  Print Name: Arvind Sodhani

  	 

	
   

  	
   

  	 

	
   

  	
  Title:

  	
  Senior Vice President, Intel Corporation President,
  Intel Capital

  	 

	
   

  	
   

  	 

	
   

  	
   

  	 

	
   

  	
  MICRON TECHNOLOGY, INC.

  	 

	
   

  	
   

  	 

	
   

  	
   

  	 

	
   

  	
  By:

  	
  /s/ STEVEN R. APPLETON

  	
   

  
	
   

  	
   

  	 

	
   

  	
  Print Name: Steven R. Appleton

  	 

	
   

  	
  Title: Chief Executive Officer and President

  	 

							

 

THIS IS THE SIGNATURE PAGE FOR THE MASTER AGREEMENT
ENTERED INTO BY AND BETWEEN INTEL CORPORATION AND MICRON TECHNOLOGY, INC.

 

29

 

APPENDIX A

 

MASTER AGREEMENT

 

DEFINITIONS

 

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

 

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

 

“Annexation and Development
Agreement” means the Annexation and Development Agreement, dated as
of June 13, 1995, between Micron and Lehi City, and any amendments
thereto.

 

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

 

“Assigned Contracts”
means the contracts to be assigned by Micron to the Joint Venture Company under
one or more assignment and assumption agreements duly executed by Micron, as
referred to on Schedule 2.4 of the Master Agreement Disclosure
Letter.

 

“Bilateral Agreements”
shall have the meaning set forth in Section 2.2 of this Agreement.

 

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

 

“Capital Contribution”
shall have the meaning set forth in the Operating Agreement.

 

“Closing” shall
have the meaning set forth in Section 5.1 of this Agreement.

 

“Closing Date”
means the date on which the Closing occurs. For purposes of this Agreement and
the other agreements and instruments referenced herein, the Closing shall be
deemed to have occurred at 11:59 p.m. on such date.

 

“CNDA” means the
Corporate Non-Disclosure Agreement No. [***], dated as of [***], between
Micron and Intel.

 

“Commission”
means the United States Securities and Exchange Commission.

 

“Competition Law”
means the Sherman Antitrust Act of 1890, as amended, the Clayton Act of 1914,
as amended, the HSR Act, the Federal Trade Commission Act, as amended, and all
other domestic or foreign Applicable Laws issued by a domestic or foreign
Governmental Entity that are designed or intended to prohibit, restrict or
regulate actions having the purpose or effect of monopolization or restraint of
trade or lessening of competition through merger or acquisition.

 

 

“Contractual Obligations”
means any promise, commitment or understanding between Micron and any
Governmental Entity or any third party relating to the Contributed Real
Property, the Micron Retained Property, or the Other Contributed Property.

 

“Contributed Land”
means the Lehi Site.

 

“Contributed Real Property”
means the Lehi Site and the MTV Site.

 

“Direct Claim”
means any claim, demand, lawsuit, complaint, cross-complaint or
counter-complaint, arbitration, opposition, cancellation proceeding, or other
legal or arbitral proceeding of any nature, brought in any court, tribunal or
judicial forum anywhere in the world, regardless of the manner in which such
proceeding is captioned or styled brought by any Party, or their respective
subsidiaries, officers, directors, employees or agents.

 

“Dispute” shall
have the meaning set forth in Section 8.9(A) of this Agreement.

 

“Economic Development
Agreement” means the Economic Development Agreement, dated as of May 16,
1997, between Micron and the Redevelopment Agency of Lehi City, and any
amendments thereto.

 

“Environmental Laws”
means any and all laws, statutes, ordinances, rules, regulations, orders or
binding determinations of any Governmental Entity pertaining to the environment
in any and all jurisdictions in which any of the Contributed Real Property is
located, including without limitation, the Clean Air Act, as amended, the
Comprehensive Environmental, Response, Compensation, and Liability Act of 1980,
as amended, the Federal Water Pollution Control Act, as amended, the Resource
Conservation and Recovery Act of 1976, as amended, the Safe Drinking Water Act,
as amended, the Toxic Substances Control Act, as amended, the Hazardous &
Solid Waste Amendments Act of 1984, as amended, the Superfund Amendments and
Reauthorization Act of 1986, as amended, the Hazardous Materials Transportation
Act, as amended, any state laws pertaining to the handling of wastes or the
use, maintenance, and closure of pits and impoundments, and other environmental
conservation or protection laws.

 

“Environmental Permits”
shall have the meaning set forth in Section 3.2(J)(3) of this
Agreement.

 

“Exchange Act”
means the Securities Exchange Act of 1934, as amended.

 

“[***] Budget”
shall have the meaning set forth in the Operating Agreement.

 

“Facilities Company”
shall have the meaning set forth in the Operating Agreement.

 

“Facilities Company
Employee Non-Solicitation Period” means the period commencing as of
the Closing Date and ending: (a)(i) with respect to a Party electing to
purchase a given Facilities Company pursuant to Article 13 of the
Operating Agreement, on the date that such Party provides written notice of its
election to acquire such Facilities Company pursuant to such Article 13,
and (ii) with respect to the other Party, [***] following such date; or (b) if
neither Party elects to purchase a given Facilities Company pursuant to Article 13
of the 

 

2

 

Operating Agreement, on the date that such Facilities
Company is sold or the assets thereof disposed of pursuant to Section 13.11
of the Operating Agreement.

 

“Facility Employee
Non-Solicitation Period” means the period commencing as of the
Closing Date and ending: (a)(i) with respect to a Party electing to
purchase a given Facility that is part of a Facilities Company that owns
more than one Facility and its Associated Assets pursuant to Article 13 of
the Operating Agreement, on the date that such Party provides written notice of
its election to acquire such Facility pursuant to such Article 13, and (ii) with
respect to the other Party, [***] following such date; or (b) if neither
Party elects to purchase a given Facility pursuant to Article 13 of the
Operating Agreement, on the date that such Facility is sold or the assets
thereof disposed of pursuant to Section 13.11 of the Operating Agreement.

 

“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 flammable, explosive, radioactive, hazardous, toxic,
contaminating, polluting matter, waste or substance, including any material
defined or designated as a hazardous or toxic waste, material or substance, or
other similar term, under any Environmental Laws in effect or that may be
promulgated in the future.

 

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

 

“Indemnified Party”
shall have the meaning set forth in Section 6.3(A) of this Agreement.

 

“Indemnifying Party”
shall have the meaning set forth in Section 6.3(A) of this Agreement.

 

“Initial Business Plan”
shall have the meaning set forth in the Operating Agreement.

 

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

 

“Intel Agreements”
shall have the meaning set forth in Section 2.3 of this Agreement.

 

“Intel Executive Officer”
shall have the meaning set forth in the Operating Agreement.

 

“Interest” means
a membership interest in the Joint Venture Company, including any and all
benefits to which a member of the Joint Venture Company may be entitled
under the Operating Agreement and the obligations of a member under the
Operating Agreement.

 

“JAMS” means
Judicial Arbitration and Mediation Services.

 

“Joint Venture Company”
shall have the meaning set forth in the Recitals to this Agreement.

 

3

 

“Joint Venture Company
Non-Solicitation Period” means the period commencing as of the Closing
Date and ending upon the occurrence of a Liquidating Event.

 

“Joint Venture Documents”
means any or all of this Agreement, the Pre-Existing and Contemporaneously
Executed Agreements, the Bilateral Agreements, the Trilateral Agreements, the
Intel Agreements and the Micron Agreements.

 

“Lehi Deed”
means that certain Special Warranty Deed in the form attached to the Lehi
Lease.

 

“Lehi Land”
means the Lehi Property as that term is defined in the Lehi Lease.

 

“Lehi Lease”
means that certain Lehi Pre-Subdivision Lease with Agreement to Deed between
Micron, as lessor, and the Joint Venture Company, as lessee, referred to on Schedule 2.4
of the Master Agreement Disclosure Letter.

 

“Lehi Site”
means the Lehi Contributed Property as that term is defined in the Lehi Lease.

 

“Lien” means any
lien, mortgage, pledge, hypothecation, right of others, claim, security
interest, encumbrance, lease, sublease, license, interest, option, charge or
other restriction or limitation of any nature whatsoever.

 

“Liquidating Event”
shall have the meaning set forth in the Operating Agreement.

 

“Losses” shall
have the meaning set forth in Section 6.2(A) of this
Agreement.

 

“Master Agreement
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.

 

“Material Adverse Effect”
means (i) a material adverse effect on the business, results of
operations, financial condition or prospects of a Party and its subsidiaries,
taken as a whole, or of the Joint Venture Company, 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 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.

 

“Material Adverse
Environmental Effect” means any environmental release, discharge, or
contamination, or any injunction, cease and desist order, show cause order, or
other administrative or judicial order issued under any Environmental Laws,
which has resulted in, or is reasonably likely to result in, (1) a fine or
penalty in excess of $100,000, or (2) damages to the Joint Venture Company
or to Micron in excess of $2,000,000.

 

“Member” or “Members” means one or both members of the Joint Venture
Company.

 

4

 

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

 

“Micron Agreements”
shall have the meaning set forth in Section 2.4 of this Agreement.

 

“Micron Contributed Assets”
shall have the meaning set forth in Section 2.6(B) of this Agreement.

 

“Micron Executive Officer”
shall have the meaning set forth in the Operating Agreement.

 

“Micron Retained Property”
means the Landlord’s Retained Property, as that term is defined in the Lehi
Lease.

 

“MTV Lease”
means that certain MTV Lease Agreement between Micron, as lessor, and the Joint
Venture Company, as lessee, referred to on Schedule 2.4 of the
Master Agreement Disclosure Letter.

 

“MTV Site” means
the Property as that term is defined in the MTV Lease.

 

“Micron Title Insurance
Policies” shall have the meaning set forth in Section 3.2(G)(8).

 

“Municipal Services Agreements”
shall have the meaning set forth in the Lehi Lease.

 

“NAND Flash Memory Product”
shall have the meaning set forth in the Operating Agreement.

 

“[***] Budget”
shall have the meaning set forth in the Operating Agreement.

 

“[***] Group”
shall have the meaning set forth in Section 4.13(F) of this
Agreement.

 

“Operating Agreement”
means that certain Limited Liability Company Operating Agreement of IM Flash
Technologies, LLC between Micron and Intel referred to on Schedule 2.2
of the Master Agreement Disclosure Letter.

 

“Order” shall
have the meaning set forth in Section 5.2(A) of this Agreement.

 

“Other Contributed Property”
means all tangible personal property identified to be transferred pursuant to a
bill of conveyance, as referenced in Schedule 5.3(H) of the
Master Agreement Disclosure Letter, conveying to the Joint Venture Company
tangible personal property located at the Lehi Site.

 

“Party” means
Intel or Micron individually and “Parties” means
Intel and Micron collectively.

 

“Permitted Liens”
shall have the meaning set forth in Section 3.2(G)(3) of this
Agreement.

 

“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.

 

5

 

“Pre-Existing and
Contemporaneously Executed Agreement” shall have the meaning set
forth in Section 2.1 of this Agreement.

 

“Product Designs
Development Agreement” means that certain Product Designs Development
Agreement between Intel, as owner, and Micron, as developer referred to on Schedule 2.2
of the Master Agreement Disclosure Letter.

 

“Products” shall
have the meaning set forth in the Operating Agreement.

 

“Real Property Contracts”
shall have the meaning set forth in Section 3.2(F)(1) of this
Agreement.

 

“Sharing Interest”
shall have the meaning set forth in the Operating Agreement.

 

“Supply Agreements”
shall have the meaning set forth in the Operating Agreement.

 

“Taxes” 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, 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.

 

“Third Party Claim”
means any claim, demand, lawsuit, complaint, cross-complaint or
counter-complaint, arbitration, opposition, cancellation proceeding, or other
legal or arbitral proceeding of any nature, brought in any court, tribunal or
judicial forum anywhere in the world, regardless of the manner in which such
proceeding is captioned or styled brought by any Person, other than Intel or
Micron or any of their subsidiaries or their officers, directors, employees or
agents (in their capacities as such).

 

“Transfer” shall
have the meaning set forth in the Lehi Lease.

 

“Trilateral Agreements”
shall have the meaning set forth in Section 2.5 of this Agreement.

 

“Water Rights”
means all of Micron’s right, title and interest in and to Water Right Nos.
55-8976 (A31540) (a19136), 55-8981 (A32648) (a19136), and 55-9159 (A70333), all
as reflected in the records of the Utah State Engineer, Division of Water
Rights.

 

“Water System”
means, all presently constructed wells, wellheads and well houses, tanks
(including without limitation process and fire water tanks), reservoirs, fire
protection and irrigation systems, metering and telemetry equipment, pumps,
sumps, water lines, electric power supply equipment and all other associated
equipment situated on, over or beneath the Lehi Land for use in connection with
the diversion, carriage or delivery of the Water Rights, except such items as
are owned by the City of Lehi.

 

6

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