Document:

Exhibit

ENDURANCE INTERNATIONAL GROUP HOLDINGS, INC.

Stock Option Agreement
Amended and Restated 2013 Stock Incentive Plan

This Stock Option Agreement (this “Agreement”) is made between Endurance International Group Holdings, Inc., a Delaware corporation (the “Company”), and the Participant.

NOTICE OF GRANT

I.    Participant Information
	
		
	Participant:
	 

II.    Grant Information
	
		
	Grant Date:
	 

	Number of Shares:
	 

	Exercise Price Per Share:
	 

	Vesting Commencement Date:
	 

	Type of Option:
	[Incentive Stock Option / Nonstatutory Stock Option]

III.    Vesting Table
	
		
	Vesting Date
	Shares that Vest

	First anniversary of Vesting Commencement Date
	33.333%

	Monthly for two years following first anniversary of Vesting Commencement Date
	2.7778%

IV.    Expiration Date
	
		
	5:00 pm Eastern time on Date:
	 

This Agreement includes this Notice of Grant and the following Exhibits, which are expressly incorporated by reference in their entirety herein:

Exhibit A – General Terms and Conditions
Exhibit B – Definitions
Exhibit C - Amended and Restated 2013 Stock Incentive Plan

IN WITNESS WHEREOF, the parties hereto have executed this Agreement.

	
		
	ENDURANCE INTERNATIONAL GROUP HOLDINGS, INC.

__________________________
Name:
Title:
	PARTICIPANT

__________________________
Name:

Stock Option Agreement 
Amended and Restated 2013 Stock Incentive Plan
EXHIBIT A 
GENERAL TERMS AND CONDITIONS
For valuable consideration, receipt of which is acknowledged, the parties hereto agree as follows:
1.Grant of Option.  This Agreement evidences the grant by the Company, on the grant date (the “Grant Date”) set forth in the Notice of Grant that forms part of this Agreement (the “Notice of Grant”), to the Participant of an option to purchase, in whole or in part, on the terms provided herein and in the Company’s Amended and Restated 2013 Stock Incentive Plan (the “Plan”), the number of shares set forth in the Notice of Grant (the “Shares”) of common stock, $0.0001 par value per share, of the Company (“Common Stock”) at the exercise price per Share set forth in the Notice of Grant (the “Exercise Price”).  Unless earlier terminated, this option shall expire at the time set forth in the Notice of Grant (the “Final Exercise Date”).  
It is intended that the option evidenced by this Agreement shall be an incentive stock option as defined in Section 422 of the Internal Revenue Code of 1986, as amended, and any regulations promulgated thereunder (the “Code”) solely to the extent set forth in the Notice of Grant.  To the extent not designated as an incentive stock option, or to the extent that the option does not qualify as an incentive stock option, the option shall be a nonstatutory stock option.  Except as otherwise indicated by the context, the term “Participant”, as used in this option, shall be deemed to include any person who acquires the right to exercise this option validly under its terms.
2.    Vesting Schedule.
This option will become exercisable (“vest”) in accordance with the Vesting Table set forth in the Notice of Grant.
The right of exercise shall be cumulative so that to the extent the option is not exercised in any period to the maximum extent permissible it shall continue to be exercisable, in whole or in part, with respect to all Shares for which it is vested until the earlier of the Final Exercise Date or the termination of this option under Section 3 hereof or the Plan.
Notwithstanding the foregoing, if, within the one-year period following a Change in Control Event, the Participant ceases to be an Eligible Participant (as defined below) as a result of a termination of service by the Company without Cause, then the remaining unvested portion of the option shall vest and become fully exercisable as of the date of termination.  “Change in Control Event” and “Cause” are defined in Exhibit B.  

3.    Exercise of Option.
(a)    Form of Exercise.  Each election to exercise this option shall be accompanied by a notice of exercise in the form designated by the Company or its designee, or by such other notification, including electronic notification, as may be permitted by the Company  or its designee and in all cases accompanied by payment in full in the manner provided in the Plan.  The Participant may purchase less than the number of Shares covered hereby, provided that no partial exercise of this option may be for any fractional share.
(b)    Continuous Relationship with the Company Required.  Except as otherwise provided in this Section 3, this option may not be exercised unless the Participant, at the time he or she exercises this option, is, and has been at all times since the Grant Date, an employee of the Company or any other entity (a “Participating Entity”)  the service providers of which are eligible to receive an award under the Plan (an “Eligible Participant”).  If the Participant provides services to a Participating Entity, any references in this Agreement to service with the Company shall instead be deemed to refer to service with such Participating Entity. 
(c)    Termination of Relationship with the Company.  If the Participant ceases to be an Eligible Participant for any reason, then, except as provided in paragraphs (d), (e) and (f) below or expressly set forth in another agreement between the Participant and the Company, the right to exercise this option shall terminate ninety (90) days after such cessation (but in no event after the Final Exercise Date), provided that this option shall be exercisable only to the extent that the Participant was entitled to exercise this option on the date of such cessation.  Notwithstanding the foregoing, if the Participant, prior to the Final Exercise Date, violates the non-competition or confidentiality provisions of any employment contract, confidentiality and nondisclosure agreement or other agreement between the Participant and the Company, the right to exercise this option shall terminate immediately upon such violation.
(d)    Exercise Period Upon Disability.  If the Participant ceases to be an Eligible Participant by reason of becoming disabled (within the meaning of Section 22(e)(3) of the Code) prior to the Final Exercise Date and the Company has not terminated such relationship for “cause” as defined in paragraph (f) below, then, except as expressly set forth in another agreement between the Participant and the Company, this option shall be exercisable, within the period of six months following such cessation (but in no event after the Final Exercise Date), by the Participant, provided that this option shall be exercisable only to the extent that this option was exercisable by the Participant on the date of such cessation.
(e)    Exercise Period Upon Death.  If the Participant ceases to be an Eligible Participant by reason of his or her death prior to the Final Exercise Date and the Company has not terminated such relationship for “cause”, or the Participant dies within the ninety (90)-day period following cessation of service with the Company other than for “cause”, then, except as expressly set forth in another agreement between the Participant and the Company, this option shall be exercisable, within the period of six months following the date of death of the Participant (but in no event after the Final Exercise Date), by the Participant’s authorized transferee, provided that this option shall be exercisable only to the extent that this option was exercisable by the Participant on the date of his or her death.

(f)    Termination for Cause.  If, prior to the Final Exercise Date, the Participant’s service is terminated by the Company for Cause (as defined below), then, except as expressly set forth in another agreement between the Participant and the Company, the right to exercise this option shall terminate immediately upon the effective date of such termination of service.  If the Participant is party to an employment, service or severance agreement with the Company that contains a definition of “cause” for termination of service, “Cause” shall have the meaning ascribed to such term in such agreement.  Otherwise, “Cause” shall mean (i) Participant’s willful failure substantially to perform his or her duties and responsibilities to the Company or deliberate violation of a Company policy; (ii) Participant’s commission of any act of fraud, embezzlement, dishonesty or any other willful misconduct that has caused or is reasonably expected to result in material injury to the Company; (iii) unauthorized use or disclosure by Participant of any proprietary information or trade secrets of the Company or any other party to whom the Participant owes an obligation of nondisclosure as a result of his or her relationship with the Company; or (iv) Participant’s willful breach of any of his or her obligations under any written agreement or covenant with the Company (including, without limitation, breach by the Participant of any provision of any employment, consulting, advisory, nondisclosure, non-competition or other similar agreement between the Participant and the Company), as determined by the Company, which determination shall be conclusive.  The Participant’s service shall be considered to have been terminated for Cause if the Company determines, within 30 days after the Participant’s resignation, that termination for Cause was warranted.
4.    Tax Matters.
(a)    Withholding.  No Shares will be issued pursuant to the exercise of this option unless and until the Participant pays to the Company, or makes provision satisfactory to the Company for payment of, any federal, state or local withholding taxes required by law to be withheld in respect of this option.
(b)    Disqualifying Disposition.  If this option is designated as an incentive stock option on the Notice of Grant and otherwise satisfies the requirements to be treated as an incentive stock option under the Code and the Participant disposes of Shares acquired upon exercise of this option within two years from the Grant Date or one year after such Shares were acquired pursuant to exercise of this option, the Participant shall notify the Company in writing of such disposition.
5.    Transfer Restrictions.  This option may not be sold, assigned, transferred, pledged or otherwise encumbered by the Participant, either voluntarily or by operation of law, except by will or the laws of descent and distribution, and, during the lifetime of the Participant, this option shall be exercisable only by the Participant.  The terms of this Agreement shall be binding upon the executors, administrators, heirs, successors and assigns of the Participant.    
6.    Agreement in Connection with Initial Public Offering.  The Participant agrees, in connection with the initial underwritten public offering of the Common Stock pursuant to a registration statement under the Securities Act, (i) not to (a) offer, pledge, announce the intention to sell, sell, contract to sell, sell any option or contract to purchase, purchase any option or contract to sell, grant any option, right or warrant to purchase, or otherwise transfer or dispose of, 

directly or indirectly, any shares of Common Stock or any other securities of the Company or (b) enter into any swap or other agreement that transfers, in whole or in part, any of the economic consequences of ownership of shares of Common Stock or other securities of the Company, whether any transaction described in clause (a) or (b) is to be settled by delivery of securities, in cash or otherwise, during the period beginning on the date of the filing of such registration statement with the Securities and Exchange Commission and ending 180 days after the date of the final prospectus relating to the offering (plus up to an additional 34 days to the extent requested by the managing underwriters for such offering in order to address Rule 2711(f) of the National Association of Securities Dealers, Inc. or any similar successor provision), and (ii) to execute any agreement reflecting clause (i) above as may be requested by the Company or the managing underwriters at the time of such offering.  The Company may impose stop-transfer instructions with respect to the shares of Common Stock or other securities subject to the foregoing restriction until the end of the “lock-up” period.
7.    Miscellaneous.
(a)    No Rights to Service.  The Participant acknowledges and agrees that the grant of the this option and its vesting pursuant to Section 2 do not constitute an express or implied promise of continued service with the Company for the vesting period of the option, or for any period.
(b)    Entire Agreement.  This Agreement and the Plan constitute the entire agreement between the parties, and supersede all prior agreements and understandings, relating to the subject matter of this Agreement; provided that any separate employment or severance agreement between the Company and the Participant that includes terms relating to the acceleration of vesting of equity awards shall not be superseded by this Agreement.  In the event of a conflict between the terms and provisions of the Plan and the terms and provisions of this Agreement, the Plan terms and provisions shall prevail.
(c)    Governing Law.  This Agreement shall be construed, interpreted and enforced in accordance with the internal laws of the State of Delaware, without regard to any applicable conflict of law principles.

EXHIBIT B

DEFINITIONS

 “Change in Control Event” shall mean the occurrence of one or more of the following events:
(1) the acquisition by an individual, entity or group (within the meaning of Section 13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934, and amended (the “Exchange Act”)) (a “Person”) of beneficial ownership of any capital stock of the Company if, after such acquisition, such Person beneficially owns (within the meaning of Rule 13d-3 under the Exchange Act) 50% or more of either (x) the then-outstanding shares of common stock of the Company (the “Outstanding Company Common Stock”) or (y) the combined voting power of the then-outstanding securities of the Company entitled to vote generally in the election of directors (the “Outstanding Company Voting Securities”); provided, however, that for purposes of this subsection (1), the following acquisitions shall not constitute a Change in Control Event: (I) any acquisition directly from the Company (excluding an acquisition pursuant to the exercise, conversion or exchange of any security exercisable for, convertible into or exchangeable for common stock or voting securities of the Company, unless the Person exercising, converting or exchanging such security acquired such security directly from the Company or an underwriter or agent of the Company) or (II) any acquisition by any corporation pursuant to a Business Combination (as defined below) which complies with clauses (x) and (y) of subsection (3) of this definition; or
(2) a change in the composition of the Board that results in the Continuing Directors (as defined below) no longer constituting a majority of the Board (or, if applicable, the Board of Directors of a successor corporation to the Company), where the term “Continuing Director” means at any date a member of the Board (x) who was a member of the Board on the date of the initial adoption of the Plan by the Board or (y) who was nominated or elected subsequent to such date by at least a majority of the directors who were Continuing Directors at the time of such nomination or election or whose election to the Board was recommended or endorsed by at least a majority of the directors who were Continuing Directors at the time of such nomination or election; provided, however, that there shall be excluded from this clause (y) any individual whose initial assumption of office occurred as a result of an actual or threatened election contest with respect to the election or removal of directors or other actual or threatened solicitation of proxies or consents, by or on behalf of a person other than the Board; or
(3)    the consummation of a merger, consolidation, reorganization, recapitalization or share exchange involving the Company or a sale or other disposition of all or substantially all of the assets of the Company (a “Business Combination”), unless, immediately following such Business Combination, each of the following two conditions is satisfied: (x) all or substantially all of the individuals and entities who were the beneficial owners of the Outstanding Company Common Stock and Outstanding Company Voting Securities immediately prior to such Business Combination beneficially own, directly or indirectly, more than 50% of the then-outstanding shares of common stock and the combined voting power of the then-outstanding securities entitled to vote generally in the election of directors, respectively, of the resulting or acquiring 

corporation in such Business Combination (which shall include, without limitation, a corporation which as a result of such transaction owns the Company or substantially all of the Company’s assets either directly or through one or more subsidiaries) (such resulting or acquiring corporation is referred to herein as the “Acquiring Corporation”) in substantially the same proportions as their ownership of the Outstanding Company Common Stock and Outstanding Company Voting Securities, respectively, immediately prior to such Business Combination and (y) no Person (excluding any employee benefit plan (or related trust) maintained or sponsored by the Company or by the Acquiring Corporation) beneficially owns, directly or indirectly, 50% or more of the then-outstanding shares of common stock of the Acquiring Corporation, or of the combined voting power of the then-outstanding securities of such corporation entitled to vote generally in the election of directors (except to the extent that such ownership existed prior to the Business Combination); or
(4)    the liquidation or dissolution of the Company.
“Cause” shall mean:  (1) if the Participant is party to an employment, service or severance agreement with the Company that contains a definition of “cause” for termination of employment or service, the meaning ascribed to such term in such agreement or (2) otherwise, any of (w) Participant’s willful failure substantially to perform his or her duties and responsibilities to the Company or deliberate violation of a Company policy; (x) Participant’s commission of any act of fraud, embezzlement, dishonesty or any other willful misconduct that has caused or is reasonably expected to result in material injury to the Company; (y) unauthorized use or disclosure by Participant of any proprietary information or trade secrets of the Company or any other party to whom the Participant owes an obligation of nondisclosure as a result of his or her relationship with the Company; or (z) Participant’s willful breach of any of his or her obligations under any written agreement or covenant with the Company (including, without limitation, breach by the Participant of any provision of any employment, consulting, advisory, nondisclosure, non-competition or other similar agreement between the Participant and the Company), as determined by the Company, which determination shall be conclusive.  The Participant’s employment or service shall be considered to have been terminated for Cause if the Company determines, within 30 days after the Participant’s resignation, that termination for Cause was warranted.

EXHIBIT C

AMENDED AND RESTATED 2013 STOCK INCENTIVE PLANExhibit

CONFIDENTIAL
FIRST AMENDMENT TO MATERIALS SUPPLIER AGREEMENT
This First Amendment to the Materials Supplier Agreement (this “Amendment”) is made effective as of January 1, 2018 (the “Amendment Effective Date”), by and between Insulet Corporation, having its place of business at 600 Technology Park Drive, Suite 200, Billerica, Massachusetts 01821 (“Insulet”) and Flextronics Medical Sales and Marketing, Ltd., having its place of business at Level 3, Alexander House 35, Cybercity, Ebene, Mauritius (“Flex”).  Insulet and Flex are collectively referred to as the “Parties,” and each a “Party.”  The First Amendment and the Original Agreement (as defined below) are collectively referred to herein as the “Agreement.”  All capitalized terms used herein are as defined in the Original Agreement, unless otherwise expressly defined herein. 
WHEREAS, the Parties entered into the Materials Supplier Agreement dated September 1, 2016 (the “Original Agreement”);
WHEREAS, in the furtherance of their long-term relationship and in support of Insulet’s growing business, the Parties have agreed on a new pricing model which lowers the unit price while accounting for increased volumes;
WHEREAS, the Parties wish to amend Exhibit A to the Original Agreement as described herein; and
NOW, THEREFORE, the Parties hereby agree to amend the Original Agreement as follows:
1.Exhibit A is replaced in its entirety with Amended Exhibit A attached hereto.  
2.    Section 2 of the Original Agreement is replaced as follows:
“Term of Agreement.  The initial term of this Agreement shall commence upon the Effective Date and shall be for a period through December 31, 2022 (the “Amended Contract Term”), unless earlier terminated pursuant to Section 16 herein.  Upon the expiration of the Amended Contract Term, the term of this Agreement shall automatically extend until the earlier of: (a) termination of this Agreement by (i) Insulet upon at least [*] prior written notice to Supplier or (ii) Supplier upon at least [*] prior written notice to Insulet; or (b) replacement of this Agreement by another written agreement of the Parties.  The Amended Contract Term together with any extensions as provided by this Section 2 is referred to in this Agreement as the “Term”.
3.    Section 3(d) of the Original Agreement is replaced as follows:
“Manufacturing and Delivery Commitment.  For the Term of this Agreement, Supplier commits to supply to Insulet, in accordance with the terms and conditions hereof, such quantities of the Products listed on Amended Exhibit A (including those added as provided above) as Insulet may choose to order under the terms of this Agreement and which Supplier has agreed to supply in accordance with the terms hereof.  Insulet reserves the right to manufacture the Products or similar items itself or purchase the Products or similar items from other suppliers.  If Supplier fails to deliver the total quantity of Products ordered by Insulet in any Purchase Order as accepted by Supplier pursuant to Section 6 of the Original Agreement, by the date of delivery specified therein, then, (i) at Insulet’s option, Insulet may have the remaining portion of the order of Product shipped by air freight at Supplier’s sole cost and expense and (ii) Supplier shall use commercially reasonable efforts to identify the root cause of the failure and provide such information to Insulet as soon as reasonably possible.  Thereafter, the Parties agree to engage in a management review and remediation process to prevent such failure from reoccurring.  Regardless of whether Insulet manufactures, orders replacement or substitute Products from another source, Supplier shall remain obligated to deliver the total quantity ordered by Insulet, unless Insulet notifies Supplier that Insulet is canceling its order with respect to the amount of the shortfall.
* Confidential treatment has been requested for portions of this exhibit. The copy filed herewith omits the information subject to the confidentiality request. Omissions are designated as [*]. A complete version of this exhibit has been filed separately with the Securities and Exchange Commission.

4.    Section 4(a) of the Original Agreement is replaced as follows:
“General”.  During the Amended Contract Term, pricing is set in accordance with the pricing tables set forth on Amended Exhibit A (including those for Products added to Amended Exhibit A as provided in Section 3 above).  All prices shall be in U.S. Dollars and subject to the requirements in Amended Exhibit A.  The purchase price shall include all costs for adequate packaging as suitable for transport by road and/or as further specified under the Specifications listed in Amended Exhibit A.”

5.    The following sections of the Original Agreement are deleted in their entirety:  
-Section 4(b) and Section 4(c)
6.    The following sentence is added to the end of Section 8(b):
“MOH means Supplier’s fee for acquiring, managing and storing materials, which is [*] of the actual cost of the materials.”
7.    Except as modified herein, all other terms and conditions of the Original Agreement shall remain in full force and effect.  In the event of a conflict between the terms of the Original Agreement and the terms of this Amendment, the terms of this Amendment will prevail.  The Original Agreement and this Amendment represents the entire agreement and understanding between the Parties with respect to the subject matter hereof and can only be modified by a written document that has been signed by the Parties’ respective authorized representatives.  
	
		
	AGREED TO AND ACCEPTED BY:
	 

	 
	 

	Insulet Corporation
	Flextronics Medical Sales and 
Marketing, Ltd.

	 
	 

	 
	 

	 
	 

	BY:    _______________________________
	BY:    _______________________________

	 
	 

	TITLE:_______________________________
	TITLE:_______________________________

	 
	 

	DATE:   _______________________________
	DATE:   _______________________________

* Confidential treatment has been requested for portions of this exhibit. The copy filed herewith omits the information subject to the confidentiality request. Omissions are designated as [*]. A complete version of this exhibit has been filed separately with the Securities and Exchange Commission.

MATERIALS SUPPLIER AGREEMENT

between

INSULET CORPORATION (“Insulet”)

and 

FLEXTRONICS MEDICAL SALES AND MARKETING, LTD (“Supplier”)

Amended Exhibit A

PRODUCTS AND PRICES
		
	A.
	PDMs

		
	1.
	Finished PDMs listed below:

	
			
	Drawing
	Description
	Family

	[*]
	[*]
	[*]

		
	2.
	PDM Pricing Table:

[*]

The above PDM Pricing Table shall be effective during the Amended Contract Term and is based upon the following assumptions:
		
	•
	The PDM Pricing Table assumes the PDM demand forecast of at least [*] units annually.  If volume is less than [*] units annually, the Parties agree to negotiate new PDM Pricing.

		
	•
	The PDM Pricing Table assumes Pod production continues at [*] units or greater in a given year in which PDMs are purchased.  If volume is less than [*] Pods annually, the Parties agree to negotiate new PDM pricing. 

		
	•
	The PDM Pricing Table is subject to the terms of the Agreement and based upon the same assumptions in sections D.6, D.7 and D.8 below.

Amended Exhibit A - Page 3

* Confidential treatment has been requested for portions of this exhibit. The copy filed herewith omits the information subject to the confidentiality request. Omissions are designated as [*]. A complete version of this exhibit has been filed separately with the Securities and Exchange Commission.

		
	B.
	Pods

Finished Pod Assemblies listed below:
	
			
	Drawing
	Description
	Family

	[*]
	[*]
	[*]

FY17 Q4 Pod Pricing

[*]

Amended Exhibit A - Page 4

* Confidential treatment has been requested for portions of this exhibit. The copy filed herewith omits the information subject to the confidentiality request. Omissions are designated as [*]. A complete version of this exhibit has been filed separately with the Securities and Exchange Commission.

FY18 Q1 Pod Pricing

[*]

Amended Exhibit A - Page 5

* Confidential treatment has been requested for portions of this exhibit. The copy filed herewith omits the information subject to the confidentiality request. Omissions are designated as [*]. A complete version of this exhibit has been filed separately with the Securities and Exchange Commission.

FY18 Q2 Pod Pricing

[*]

Amended Exhibit A - Page 6

* Confidential treatment has been requested for portions of this exhibit. The copy filed herewith omits the information subject to the confidentiality request. Omissions are designated as [*]. A complete version of this exhibit has been filed separately with the Securities and Exchange Commission.

		
	C.
	Volume Based Pod Pricing (USD)

1.    [*] Price:  Volume based pricing for [*] Finished Pods during the Amended Contract Term:
		
	a.
	[*] Price is effective January 1, 2018.

		
	b.
	The [*] Price is based upon the Pricing Conditions listed section D below.

		
	c.
	Steps to determine [*] Price:

i.    Establish total quarterly Pod volume and multiply by [*] to annualize the volume from volume table below for the relevant Insulet Fiscal Year: 
[*]
ii.Establish costed bill of materials (the “CBOM”) based on changes in part pricing for each [*] bill of materials
iii.Add CBOM to relevant Annual Volume price from step (i) above
iv.Adjust for changes in currency per section D.6 below

Amended Exhibit A - Page 7

* Confidential treatment has been requested for portions of this exhibit. The copy filed herewith omits the information subject to the confidentiality request. Omissions are designated as [*]. A complete version of this exhibit has been filed separately with the Securities and Exchange Commission.

2.    [*] Price:  Volume based pricing for [*] Finished Pods during the Amended Contract Term (the “[*] Price”): 
		
	a.
	[*] Price is effective January 1, 2018.

		
	b.
	The [*] Price is based upon the Pricing Conditions listed in section D below.

		
	c.
	Steps to determine [*] Price:

		
	i.
	Establish total quarterly Pod volume and multiply by [*] to annualize the volume from volume table below for the relevant Insulet Fiscal Year: 

[*]
		
	ii.
	Establish CBOM based on changes in part pricing for each [*] bill of materials

		
	iii.
	Add CBOM to relevant Annual Volume price from step (i) 

		
	iv.
	Adjust for changes in currency per section D.6 below

		
	2.
	[*] and [*] Pods: Price to be agreed upon by the parties (the “[*] and [*] Price” and together with the [*] Price and [*] Price, collectively, the “Price”).

		
	D.
	 PRICING CONSIDERATIONS AND ADJUSTMENTS.  The above Price during Amended Contract Term is subject to the following conditions (“Pricing Conditions”): 

1.    [*]

2.    [*]

3.    [*]

4.    The Parties will conduct an annual review of the Forecast, including any needs for increased capacity.  Any volume increase is subject to the Parties’ written agreement to achieve required capacity.  Mutually agreed to capital investment, equipment and associated NREs (including but not limited to qualification and validation activities) required to achieve higher volumes will be paid for by Insulet.  The Parties agree that any cost changes associated with any capital investment, equipment and associated NREs described in the preceding sentence shall be passed along in the form of a reduction or increase in Price.

5.    [*]

6.    If the exchange rate on the [*] day of a calendar quarter-end month is outside the range of [*] CNY to [*] USD according to the Wall Street Journal (WSJ), pricing for the subsequent quarter shall be as follows: Price + [[*] x ([*]))].  For purposes of the formula in the preceding sentence, (i) Price shall be taken from the tables in section C above and (ii) [*] shall be the applicable WSJ exchange rate on [*] day of the quarter-end month.

7.    [*]

Amended Exhibit A - Page 8

* Confidential treatment has been requested for portions of this exhibit. The copy filed herewith omits the information subject to the confidentiality request. Omissions are designated as [*]. A complete version of this exhibit has been filed separately with the Securities and Exchange Commission.

8.    Any Engineering Change is subject to Section 3(c) of the Agreement. 
9.    Any amount due per Pod destroyed for lot qualification testing shall be billed separately to Insulet at Flex’s cost and is not part of the Price.  For lot qualification testing Pods, Supplier will issue Insulet a credit that will be applied to the Insulet account receivable balance in the amount of the difference in price between the [*] to [*] invoices and the CY17Q4 Price in the [*] Pricing Table above to account for the price changes agreed to in this Amended Exhibit A.   
10.    The Parties hereby agree that the Pod Price set forth in the Pricing Tables herein will only apply during the [*] and will not apply to any renewal period after [*] or any orders placed after that date, including specifically the Final Order in Section 16 of the Agreement.  In consideration for the pricing and the other consideration set forth herein, each Party on behalf of itself and its respective present and former employees, shareholders, parent and affiliated companies, and insurers hereby releases the other from any and all claims, set-offs, counterclaims, and demands of every type and description, based on any legal theory, right of action, or otherwise, suspected or unsuspected, known or unknown and hereinafter becoming known by either of the Parties, foreseen or unforeseen, matured or unmatured, accrued or not accrued, that they ever had, now have or may have arising out of or in any way connected to the pricing terms described by, or submitted pursuant to, Exhibit A to the Original Agreement, including without limitation the Quarterly Pricing Process for Finished Pod Assemblies, from [*] through the Amendment Effective Date.  Each Party waives application of the California Civil Code Section 1542.  This Paragraph does not relieve the Parties from any other obligations under the Original Agreement or this Amendment, including the obligation to pay any invoice or honor any warranty claims.

		
	E.
	PDK Pricing

[*]

* The PDK Pricing set forth above is per ten pack, not per Pod.  In other words, the Eros PDK US ten pack is [*]
		
	F.
	Plastics

Supplier and Insulet agree to the following volume-based-pricing for plastic components for the Insulet controlled materials purchased under this Agreement.  Insulet intends to purchase at least half of its monthly requirement for these plastics from Supplier:

Table A – Plastics Group 1 
	
						
	 
	 
	Annual Volume 
(Volume breaks apply to pro-rated monthly releases)

	Drawing
	Description
	[*]
	[*]
	[*]
	[*]

	[*]
	[*]
	[*]
	[*]
	[*]
	[*]

Amended Exhibit A - Page 9

* Confidential treatment has been requested for portions of this exhibit. The copy filed herewith omits the information subject to the confidentiality request. Omissions are designated as [*]. A complete version of this exhibit has been filed separately with the Securities and Exchange Commission.

	
						
	Table B – Plastics Group 2
	 
	

	 
	 
	 

	 
	 
	Annual Volume 
(Volume breaks apply to pro-rated monthly releases)
	 

	Drawing
	Description
	[*]
	[*]
	[*]
	 

	[*]
	[*]
	[*]
	[*]
	[*]
	 

1.    In the event that Insulet fails to purchase half of its plastics requirement for Plastics Group 1 and Plastics Group 2 from Supplier for a period of more than 6 consecutive months after all parts are fully qualified and available for production, Supplier may increase the Price set forth above by [*]. A component of the plastic annual volume-based-pricing is based on certain resin pricing as follows: a) if Insulet-controlled resin pricing increases or decreases, the plastic annual volume-based-pricing will increase or decrease accordingly on a quarterly basis, once approved by both Parties; and b) resin pricing for resin purchased by supplier will be reviewed on a quarterly basis and reconciled once approved by both Parties.  Supplier will provide resin cost, supporting documentation and payments to resin suppliers to support the reconciliation process.

2.    The Plastic Parts Price supplied is based on total Insulet-controlled supply chain resin pricing.  If this Insulet controlled resin pricing increases or decreases, the Plastics Part Price will increase or decrease by the same dollar value on a quarterly basis.  This adjustment will be part of the quarterly review in section D.5 above. 

Amended Exhibit A - Page 10

* Confidential treatment has been requested for portions of this exhibit. The copy filed herewith omits the information subject to the confidentiality request. Omissions are designated as [*]. A complete version of this exhibit has been filed separately with the Securities and Exchange Commission.

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