Document:

Staktek Holdings 2005 Employee Stock Purchase Plan

 EXHIBIT 10.1 
  

 Amended and Restated 
 Staktek Holdings, Inc. 
 2005 Employee Stock Purchase Plan 
 Definitions and Construction 
 1.1 Definitions. Where the following capitalized words and phrases are used in the Plan, each has the respective meaning set forth below, unless the context clearly indicates to the contrary: 
 (1) Board: The Board of Directors of Staktek Holdings, Inc. 
 (2) Code: The Internal Revenue Code of 1986, as amended. 
 (3) Committee: The committee appointed by the Board to administer the Plan as provided in Article VII. 
 (4) Company: Staktek Holdings, Inc. and each Participating Company. 
 (5) Date of Exercise: The last day of each Option Period. 
 (6) Date of Grant: The first day of each Option Period. 
 (7) Eligible Compensation: Regular straight-time earnings or base salary, determined before giving effect to any salary
reduction agreement pursuant to (i) a qualified cash or deferred arrangement (within the meaning of section 401(k) of the Code) or (ii) any cafeteria plan (within the meaning of section 125 of the Code). “Eligible Compensation”
will not include overtime, bonuses, commissions, severance pay, incentive pay, shift premium differentials, pay in lieu of vacation, reimbursements, or any other special or incentive payments excluded by the Committee in its discretion (applied on a
uniform basis). 
 (8) Eligible Employee: With respect to each Date of Grant, each employee of the Company,
except an employee who (i) is regularly scheduled to work 20 hours or less per week, or (ii) is regularly scheduled to work less than five months in any calendar year; provided, however, that no employee who, determined immediately after
an option would be granted, owns stock possessing five percent or more of the total combined voting power or value of all classes of stock of the Company or of its Parent or Subsidiaries (within the meaning of sections 423(b)(3) and 424(d) of the
Code) will be an “Eligible Employee”; and, provided further that, notwithstanding any other provision in the Plan to the contrary, the Company will not be obligated to grant options or to offer, issue, sell, or deliver Stock under the Plan
to any employee who is a citizen or resident of a jurisdiction the laws of which prohibit the Company from taking any such action with respect to such employee, and no such employee will be an “Eligible Employee” during the period the
Company is so prohibited. 
 (9) Exchange Act: The Securities Exchange Act of 1934, as amended. 
 (10) Fair Market Value: As of any specified date, (i) the closing price of the Stock either (a) if the Stock is
traded on the National Market System of the NASDAQ, as reported on the National Market System of NASDAQ on that date (or if no sales occur on that date, on the last preceding date on which such sales of the Stock are so reported) or (b) if the
Stock is listed on a national securities exchange, as reported on the stock exchange composite tape on that date (or if no sales occur on that date, on the last preceding date on which such sales of the Stock are so reported); (ii) if the Stock
is not traded on the National Market System of the NASDAQ or a national securities exchange but is traded over the counter at the time a determination of its fair market value is required to be made hereunder, the average between the reported high
and low or closing 

  

 1 

 EXHIBIT 10.1 
  

 
bid and asked prices of the Stock on the most recent date on which Stock was publicly traded; or (iii) in the event the Stock is not publicly traded at
the time a determination of its value is required to be made hereunder, the amount determined by the Board in its discretion in such manner as it deems appropriate. 
 (11) Option Period: The three-consecutive-month period beginning each January 1, April 1, July 1,
and October 1. 
 (12) Option Price: The per share price of Stock, as determined in accordance with
Section 3.3. 
 (13) Option Shares: The shares of Stock acquired pursuant and subject to the terms of the
Plan. 
 (14) Parent: A parent corporation within the meaning of section 424(e) of the Code. 
 (15) Participant: Each Eligible Employee who has elected to participate in the Plan for an Option Period. 
 (16) Participating Company: Staktek Group L.P. and each other present or future Parent or Subsidiary of Staktek Holdings,
Inc. that is participating in the Plan pursuant to Section 9.1. 
 (17) Plan: This Staktek Holdings, Inc.
2005 Employee Stock Purchase Plan, as amended from time to time. 
 (18) Restriction Period: The period of time
during which shares of Stock acquired by a Participant may not be sold, assigned, pledged, exchanged, hypothecated, or otherwise transferred, encumbered, or disposed of by such Participant as provided in Section 4.3. 
 (19) Rule 16b-3: SEC Rule 16b-3 promulgated under the Exchange Act, as such may be amended from time to time, and any
successor rule, regulation, or statute fulfilling the same or a similar function. 
 (20) Stock: The shares of
Staktek Holdings, Inc.’s common stock, par value $.001 per share. 
 (21) Subsidiary: A subsidiary
corporation within the meaning of section 424(f) of the Code. 
 1.2 Number and Gender. Wherever appropriate herein, words used
in the singular will be considered to include the plural, and words used in the plural will be considered to include the singular. The masculine gender, where appearing in the Plan, will be deemed to include the feminine gender. 
 1.3 Headings. The headings and subheadings in the Plan are included solely for convenience, and if there is any conflict between such
headings or subheadings and the text of the Plan, the text will control. 
 1.4 Intention to be Employee Stock Purchase Plan.
The Plan is intended to qualify as an “employee stock purchase plan” within the meaning of section 423 of the Code, and all provisions of the Plan will be construed in a manner consistent with the requirements of that section of the Code.

 II. 
 Eligibility and
Participation 
 2.1 Eligibility. Each employee of the Company who is an Eligible Employee as of the first day of an Option
Period will be eligible to participate in the Plan with respect to such Option Period. An Eligible Employee who is so eligible may elect to become a Participant by complying with the payroll deduction authorization procedures set forth in
Section 2.2. 
  

 2 

 EXHIBIT 10.1 
  

 2.2 Payroll Deduction Authorization. 
 2.2.1 Except as provided in Subsection 2.2.3, each Eligible Employee who elects to participate in the Plan for an Option Period will
become a Participant for that Option Period by delivering to the Company, within the time period prescribed by the Committee, a written payroll deduction authorization in a form approved by the Company whereby such Eligible Employee designates,
subject to the limitation set forth in Sections 3.4 and 3.5, an integral percentage (from 2% to 15%) of his Eligible Compensation to be deducted from his compensation each pay period and paid into the Plan for his account. Such notice and election
will be effective as of the first day of the Option Period following receipt by the Company of such notice. 
 2.2.2 A
Participant’s payroll deduction authorization for an Option Period may not be increased during such Option Period. A Participant may decrease the rate of his or her payroll deductions during the Option Period by submitting a signed, revised
payroll deduction authorization indicating such change. The change in rate effected by the new payroll deduction authorization shall be effective no more than 15 days following the Company’s receipt of this authorization. 
 2.2.3 Subject to the limitations set forth in Sections 3.4 and 3.5, a Participant who (1) has elected to participate in the Plan
pursuant to Subsection 2.2.1 for an Option Period and (2) takes no action to change or revoke such election as of the first day of the next following Option Period will be deemed to have made the same election to participate in the Plan,
including the same payroll deduction authorization, for such subsequent Option Period as was in effect on the first day of the immediately preceding Option Period, but only if such Participant is an Eligible Employee as of the first day of such
following Option Period. Payroll deductions of a Participant that are limited by Section 3.5 will recommence automatically at the rate provided in such Participant’s payroll deduction authorization at the beginning of the first Option
Period that is scheduled to end in the following calendar year, unless such Participant changes the amount of his payroll deduction authorization in accordance with this Subsection or terminates participation in the Plan as provided in
Section 2.3 or 2.4. 
 2.3 Withdrawal of Plan Participation. Any Participant may withdraw in whole from the Plan during an
Option Period, provided that the withdrawal is made at least ten days prior to the Date of Exercise relating to such Option Period. Partial withdrawals will not be permitted. A Participant who wishes to withdraw from the Plan must timely deliver to
the Company a notice of withdrawal in a form approved by the Committee. The Company, as soon as administratively practicable following the time when the notice of withdrawal is delivered to the Company, will refund to the Participant the amount of
his payroll deductions under the Plan (without interest) that has not yet been otherwise returned to such Participant or used upon exercise of options, and thereupon, automatically and without any further act on his or her part, such
Participant’s payroll deduction authorization and interest in unexercised options under the Plan will terminate. A Participant who withdraws from the Plan will be eligible to participate again in the Plan upon expiration of the Option Period
during which he/she withdrew by complying with the procedures set forth in Section 2.2, provided that the Participant is an Eligible Employee otherwise eligible to participate in the Plan at such time. 
 2.4 Effect of Termination of Employment. If a Participant terminates employment with the Company for any reason whatsoever, his
participation in the Plan automatically and without any act on his part will terminate as of the date of such termination of his employment, and thereupon, automatically and without any further act on his part, such Participant’s payroll
deduction authorization will terminate. Upon termination of a Participant’s employment with the Company for any reason, the Company will as soon as administratively practicable following such termination refund to such Participant the amount of
his aggregated payroll deductions allocated to his account under the Plan (without interest) that have not yet been returned to him or used to exercise options under the Plan. Upon such termination of employment, the interest of such Participant in
unexercised options under the Plan will immediately terminate. 
  

 3 

 EXHIBIT 10.1 
  

 2.5 Effect of Leave of Absence. 
 2.5.1 If a Participant takes a paid leave of absence approved by the Company and meeting the requirements of Treasury regulation §
1.421-7(h)(2), subject to Subsection 2.5.3, such Participant will continue as a Participant in the Plan, and his elected payroll deductions will continue as long as such Participant is an Eligible Employee on the first day of the respective Option
Period. 
 2.5.2 If a Participant takes an unpaid leave of absence that is approved by the Company and meets the requirements
of Treasury regulation § 1.421-7(h)(2), subject to Subsection 2.5.3, such Participant’s payroll deductions for such Option Period that were made prior to such leave may remain in the Plan and be used to purchase Stock under the Plan on the
Date of Exercise relating to such Option Period. However, such Participant may not contribute to the Plan during such unpaid leave of absence. 
 2.5.3 If a Participant takes a leave of absence that is not described in Subsection 2.5.1 or 2.5.2, such Participant will be treated, for purposes of the Plan, as if he has terminated his employment with the Company
pursuant to the provisions of Section 2.4 hereof. Further, notwithstanding the preceding provisions of this Section, if a Participant takes a leave of absence that is described in Subsection 2.5.1 or 2.5.2 and such leave of absence
exceeds 90 days, such Participant will be considered, for purposes of the Plan, to have terminated his employment with the Company pursuant to the provisions of Section 2.4 on the 91st day of such leave of absence. 
 III. 
 Grant of Options

 3.1 Grant of Options. The Company will, on each Date of Grant, grant an option under the Plan to purchase shares of
Stock to each Participant. 
 3.2 Term of Options. Except as provided in Section 6.2, the term of each option will be
three months, with each Option Period beginning on the Date of Grant and ending on the Date of Exercise of such option. 
 3.3 Option
Price. The Option Price with respect to an option will be an amount equal to 85% of the Fair Market Value of the Stock on the Date of Exercise of such option. 
 3.4 Number of Shares Subject to Option. Subject to Sections 3.5 and 3.6, the number of shares of Stock subject to a Participant’s option for an Option Period will be equal to the quotient of
(1) the aggregate payroll deductions withheld on behalf of such Participant during such Option Period, divided by (2) the Option Price of the Stock applicable to such Option Period, rounded down to the nearest whole share. 
 3.5 $25,000 Limitation. No Participant will be granted an option under the Plan to the extent such option permits such Participant to
purchase Stock under the Plan and under all other employee stock purchase plans of the Company and its Parent and Subsidiaries in an amount that exceeds $25,000 of Fair Market Value of Stock (determined as of the first day of the Option Period) for
each calendar year in which such option is outstanding at any time (within the meaning of section 423(b)(8) of the Code). Any payroll deductions in excess of the amount specified in the foregoing sentence will be returned to the Participant (without
interest) as soon as administratively practicable following the next Date of Exercise. 
 3.6 Aggregate Limitation on Shares.
In the event that the aggregate number of shares subject to Participants’ options under the Plan for an Option Period would cause the limitation set forth in Section 5.1 to be exceeded, such aggregate number of shares will be decreased as
of the Date of Exercise by the number of shares in excess of such limitation. The number of shares subject to each Participant’s option will be reduced on a pro rata basis. Any excess payroll deductions remaining in a Participant’s

  

 4 

 EXHIBIT 10.1 
 account after exercise of such option will be returned to the Participant (without interest) as soon as administratively practicable following such Date of Exercise. 
 3.7 No Assignment of Option. An option granted under the Plan will not be transferable otherwise than by will or the laws of descent and
distribution. Each option will be exercisable only by the employee to whom such option is granted and only during his lifetime. The Company will not recognize and will be under no duty to recognize any assignment or purported assignment by an
employee of his option or of any rights under his option or under the Plan. 
 3.8 No Rights of Stockholder Until Option Exercised.
With respect to shares of Stock subject to an option, an optionee will not be deemed to be a stockholder, and he will not have any of the rights or privileges of a stockholder, until such option has been exercised. With respect to an
individual’s Stock held by the custodian pursuant to Section 4.2, the custodian will, as soon as practicable, pay the individual any cash dividends attributable thereto or credit such dividends to such individual’s account (as
directed by the Committee in its discretion applied in a uniform manner) and will, in accordance with procedures adopted by the custodian, facilitate the individual’s voting rights attributable thereto. 
 IV. 
 Exercise of Options and Option
Shares 
 4.1 Exercise of Options. 
 4.1.1 Subject to the limitations set forth in Sections 3.4, 3.5, and 3.6, each Participant for an Option Period will automatically, and
without any act on his part, exercise his option on the Date of Exercise of such Option Period to the extent such Participant’s aggregate payroll deductions for such Option Period are sufficient to purchase at the Option Price at least one
whole share of Stock and to the extent the issuance of Stock to such Participant upon such exercise is lawful. Such option will be exercised for the full number of shares of Stock subject to such option as set forth in Section 3.4. 

4.1.2 Any excess payroll deductions remaining in a Participant’s account after exercise of an option because such excess is not
sufficient to purchase a whole share of Stock will either (1) be applied to the purchase of shares of Stock during the next Option Period as if such Participant had contributed such amount by payroll deduction to the Plan during such next
Option Period unless such Participant has elected not to participate in the Plan during that next Option Period in accordance with Subsection 2.2.1 or 2.2.3 or (2) be refunded to the Participant (without interest) as soon as
administratively practicable after the applicable Exercise Date if the Participant has elected not to participate in the Plan, or cannot participate in the Plan because of the limitations in Section 3.5 or 3.6, during that next Option Period.

 4.2 Delivery of Share Certificates to Custodian. 
 4.2.1 Except as otherwise provided under Subsection 4.2.2, as soon as administratively practicable after each Date of Exercise, the
Company will deliver to a custodian selected by the Committee one or more certificates representing (or will otherwise cause to be credited to the account of such custodian) the total number of whole shares of Stock respecting options exercised on
such Date of Exercise in the aggregate of all of the Participants during the applicable Option Period. Such custodian will keep accurate records of the beneficial interests of each Participant in such shares by means of Participant accounts under
the Plan, and will provide each Participant with periodic statements with respect thereto as may be directed by the Committee. If the Company is required to obtain from any United States commission or agency authority to issue any such shares, the
Company will seek to obtain such authority. Inability of the Company to obtain from any commission or agency (whether United States or foreign) authority that counsel for the Company deems necessary for the lawful issuance of any such shares will
relieve the Company from liability to any Participant except to return to him the amount 

  

 5 

 EXHIBIT 10.1 
  

 
of his payroll deductions under the Plan that would otherwise have been used upon exercise of the relevant option. 
 4.2.2 With respect to the grant of an option, the Company may require the Participants to deposit the certificates evidencing the Option
Shares purchased pursuant to such grant with the Company or an agent designated by the Company under the terms and conditions of escrow and security agreements approved by the Company. If the Company does not require such deposit as a condition of
exercise of the option, the Company reserves the right at any time to require the Participants of such grant to so deposit the certificates in escrow. The Company will bear the expenses of the escrow. The escrow agent will deliver to the
Participants the certificates when they are no longer subject to such restrictions. 
 4.3 Restrictions on Transfer of Option
Shares. The Committee may from time to time specify, with respect to a particular grant of options, any Restriction Period that will apply to the Option Shares acquired pursuant to such options. Except as hereinafter provided, during any
such Restriction Period applicable to Option Shares acquired under the Plan, such Option Shares may not be sold, assigned, pledged, exchanged, hypothecated, or otherwise transferred, encumbered, or disposed of by the Participant who has purchased
such shares; provided, however, that such restriction will not apply to the transfer, exchange, or conversion of such Option Shares pursuant to a merger, consolidation, or other plan of reorganization of the Company, but the stock, securities, or
other property (other than cash) received upon any such transfer, exchange, or conversion will also become subject to the same transfer restrictions applicable to the original Option Shares, and will be held by the custodian, pursuant to the
provisions hereof. Upon the expiration of such Restriction Period, the transfer restrictions set forth in this Section will cease to apply, and the optionee may, pursuant to procedures established by the Committee and the custodian, direct the sale
or distribution of some or all of the whole Option Shares in his account that are not then subject to transfer restrictions and, in the event of a sale, request payment of the net proceeds from such sale. The Committee may cause the Option Shares
issued in connection with the exercise of options under the Plan to bear such legends or other appropriate restrictions, and the Committee may take such other actions as it deems appropriate in order to reflect the transfer restrictions set forth in
this Section and to ensure compliance with applicable laws. 
 V. 
 Stock Subject to the Plan 
 5.1 Stock Subject to the Plan. Subject
to the provisions of Section 6.1, the aggregate number of shares that may be sold pursuant to options granted under the Plan will not exceed 1,000,000 shares of the authorized Stock. Shares that may be sold pursuant to options granted under the
Plan may be unissued shares or reacquired shares, including shares bought on the market or otherwise for purposes of the Plan. Should any option granted under the Plan expire or terminate prior to its exercise in full, the shares theretofore subject
to such option may again be subject to an option granted under the Plan. Any shares that are not subject to outstanding options upon the termination of the Plan will cease to be subject to the Plan. 
 5.2 Securities Laws. The Company will not be obligated to issue any Stock pursuant to any option granted under the Plan at any time when
the offer, issuance, or sale of shares covered by such option has not been registered under the Securities Act of 1933, as amended, or does not comply with such other state, federal, or foreign laws, rules, or regulations, or the requirements of any
stock exchange upon which the Stock may then be listed, as the Company or the Committee deems applicable and when, in the opinion of legal counsel for the Company, there is no exemption from the requirements of such laws, rules, regulations, or
requirements available for the offer, issuance, and sale of such shares. Further, all Stock acquired pursuant to the Plan will be subject to the Company’s policies concerning compliance with securities laws and regulations, as such policies may
be amended from time to time. The terms and conditions of options granted hereunder to, and the purchase of shares by, persons subject to Section 16 of the Exchange Act will comply with any applicable provisions of Rule 16b-3. As to such
persons, the Plan 

  

 6 

 EXHIBIT 10.1 
  

 
will be deemed to contain, such options will contain, and the Option Shares issued upon exercise thereof will be subject to such additional conditions and
restrictions as may be required from time to time by Rule 16b-3 to qualify for the maximum exemption from Section 16 of the Exchange Act with respect to Plan transactions. 
 VI. 
 Recapitalization or Reorganization 
 6.1 Adjustments for Changes in Stock. Whenever any change is made in the Stock, by reason of a stock dividend or by reason of subdivision,
stock split, reverse stock split, recapitalization, reorganization, combination, reclassification of shares, or other similar change, appropriate action will be taken by the Committee to adjust accordingly the number of shares subject to the Plan,
the maximum number of shares that may be subject to any option, and the number and Option Price of shares subject to options outstanding under the Plan. 
 6.2 Merger or Consolidation. If Staktek Holdings, Inc. will not be the surviving corporation in any merger or consolidation (or survives only as a subsidiary of another entity), or if Staktek Holdings,
Inc. is to be dissolved or liquidated, then, unless a surviving corporation assumes or substitutes new options (within the meaning of section 424(a) of the Code) for all options then outstanding, (1) the Date of Exercise for all options then
outstanding will be accelerated to a date fixed by the Committee prior to the effective date of such merger or consolidation or such dissolution or liquidation, and (2) upon such effective date, any unexercised options will expire and, as soon
as administratively practicable, the Company will refund to each Participant the amount of such Participant’s payroll deductions under the Plan (without interest) that have not yet been otherwise returned to him or used upon exercise of
options. 
 VII. 
 Administration 
 7.1 Composition of Committee. The Plan will be administered by the Committee, which will be
appointed by the Board. In the absence of the Board’s appointment of such Committee to administer the Plan, the Board will serve as the Committee. 
 7.2 Powers. Subject to the provisions of the Plan, the Committee will in its discretion interpret the Plan and all options granted under the Plan, make such rules as it deems necessary for the proper
administration of the Plan, and make all other determinations necessary or advisable for the administration of the Plan. In addition, the Committee will in its discretion correct any defect or supply any omission or reconcile any inconsistency in
the Plan, or in any option granted under the Plan, in the manner and to the extent that the Committee deems appropriate to carry the Plan or any option into effect. The Committee will, in its sole discretion, make such decisions and determinations
and take such actions, and all such decisions, determinations, and actions taken or made by the Committee pursuant to this or any other provision of the Plan will be binding and conclusive on all parties. The Committee will have the authority to
delegate routine day-to-day administration of the Plan to such officers and employees of the Company, as the Committee deems appropriate. 
 7.3 Indemnification. Staktek Holdings, Inc. will, to the extent permitted by law, indemnify and hold harmless each member of the Committee and each member of the Board or a delegate of either against any and all expenses and
liabilities arising out of such individual’s administrative functions or fiduciary responsibilities related to the Plan, including any expenses and liabilities that are caused by or result from an act or omission constituting the negligence of
such individual in the performance of such functions or responsibilities, but excluding expenses and liabilities that are caused by or result from such individual’s own gross negligence or willful misconduct. Expenses against which such
individual will be indemnified hereunder will include, without limitation, the amounts of any settlement or judgment, costs, 
  

 7 

 EXHIBIT 10.1 
  

 
counsel fees, and related charges reasonably incurred in connection with a claim asserted or a proceeding brought or settlement thereof. 
 VIII. 
 Termination and Amendment of
the Plan 
 8.1 Termination of Plan. The Board in its discretion may terminate the Plan at any time with respect to any
Stock for which options have not theretofore been granted. Except with respect to options then outstanding, if not sooner terminated under the provisions of the preceding sentence, the Plan will automatically terminate on the earlier of (1) the
Date of Exercise on which the aggregate number of shares sold under the Plan has reached the limitation set forth at Section 5.1 or (2) April 21, 2015, and thereafter no further payroll deductions will be made and no further options will
be granted under the Plan. 
 8.2 Amendment of Plan. The Board will have the right to alter or amend the Plan or any part
thereof from time to time; provided, however, that no change in any option theretofore granted may be made that would impair the rights of an optionee without the consent of such optionee; and provided, further, that the Board may not, without the
approval of the stockholders, amend the Plan to (1) increase the aggregate number of shares of Stock that may be sold pursuant to options granted under the Plan or (2) alter the classification of entities eligible to be Participating
Companies. 
 IX. 
 Participating Companies 
 9.1 Participating Companies. The Committee may designate any present or future
Parent or Subsidiary of the Company that is eligible by law to participate in the Plan as a Participating Company by written instrument delivered to the designated Participating Company. Such written instrument will specify the effective date of
such designation and will become, as to such designated Participating Company and persons in its employment, a part of the Plan. The terms of the Plan may be modified as applied to the Participating Company only to the extent permitted under section
423 of the Code. Transfer of employment among Staktek Holdings, Inc. and Participating Companies will not be considered a termination of employment hereunder. Any Participating Company may, by appropriate action of its governing body, terminate its
participation in the Plan. Moreover, the Committee may, in its discretion, terminate a Participating Company’s Plan participation at any time. 
 X. 
 Miscellaneous 
 10.1 Use of Funds; No Interest Paid. All funds received or held by the Company under the Plan will be included in the general funds of the Company free of any trust or other restriction and may be used
for any corporate purpose. No interest will be paid to any Participant with respect to any amounts held in his account under the Plan. 
 10.2 No Restriction on Corporate Action. Nothing contained in the Plan will be construed to prevent the Company or any Parent or Subsidiary of the Company from taking any corporate action that is deemed by the Company or such
Parent or Subsidiary of the Company to be appropriate or in its best interest, whether or not such action would have an adverse effect on the Plan or any option granted under the Plan. No employee, beneficiary, or other person will have any claim
against the Company or any Parent or Subsidiary of the Company as a result of any such action. 
 10.3 Not a Contract of
Employment. The adoption and maintenance of the Plan will not be deemed to be a contract between the Company and any person or to be consideration for the employment of any person. Participation in the Plan at any given time will not be
deemed to create the right to 
  

 8 

 EXHIBIT 10.1 
  

 
participate in the Plan or in any other arrangement permitting an employee of the Company to purchase Stock at a discount. The rights and obligations under
any Participant’s terms of employment with the Company will not be affected by participation in the Plan. Nothing herein contained will be deemed to give any person the right to be retained in the employ of the Company or to restrict the right
of the Company to discharge any person at any time, nor will the Plan be deemed to give the Company the right to require any person to remain in the employ of the Company or to restrict any person’s right to terminate his employment at any
time. The Plan will not afford any employee any additional right to compensation as a result of the termination of such employee’s employment for any reason whatsoever. 
 10.4 Severability. If any provision of the Plan is held to be illegal or invalid for any reason, said illegality or invalidity will not
affect the remaining provisions hereof; instead, each provision will be fully severable, and the Plan will be construed and enforced as if said illegal or invalid provision had never been included herein. 
 10.5 Compliance with Applicable Laws. The Company’s obligation to offer, issue, sell, or deliver Stock under the Plan is at all times
subject to all approvals of and compliance with any governmental authorities (whether domestic or foreign) required in connection with the authorization, offer, issuance, sale, or delivery of Stock as well as all federal, state, local, and foreign
laws. 
 10.6 Governing Law. All provisions of the Plan will be construed in accordance with the laws of the state of Texas
except to the extent preempted by federal law. 
  

 9Agreement, dated April 20, 2006

 EXHIBIT 10.2 
 CONFIDENTIAL TREATMENT REQUESTED—EDITED COPY 
  

 MANUFACTURING AGREEMENT 
 THIS AGREEMENT (including all schedules, the “Agreement”) is made this 20th day of April 2006 (the “Effective Date”)
between Staktek Group L.P., a Texas limited partnership (“Staktek”), and SMART Modular Technologies, Inc., a company incorporated in California (“Manufacturer”). 
 RECITALS 
 WHEREAS, Staktek
presently manufactures integrated circuit modules for Hewlett-Packard (“HP”) using memory integrated circuits provided by HP; 
 WHEREAS, Manufacturer has represented to Staktek that it has the experience, capability, and resources to manufacture and supply such products for Staktek using equipment, technical support, and intellectual property provided by
Staktek; and 
 WHEREAS, Staktek and Manufacturer desire to enter into an agreement to have Manufacturer assemble such products in
accordance with the terms and conditions of this Agreement and its schedules; 
 NOW, THEREFORE, in consideration of the foregoing
premises and the mutual covenants and promises set forth below, the parties agree as follows: 
 1. DEFINITIONS 
 The following terms shall have the following respective meanings for purposes of this Agreement: 
 “Confidential Information” shall mean all data and information relating to the business, management, technology,
or technical information of Staktek, including Products, Specifications, Consigned Equipment and the existence and terms of this Agreement, whether disclosed in writing, orally, or by display, that (i) is marked “Confidential” or
similar legend, or if disclosed orally is designated by the disclosing party as confidential at the time of disclosure and reduced to writing with such legend and provided to the other party within thirty (30) calendar days of the initial
disclosure, (ii) constitutes Staktek Intellectual Property disclosed to Manufacturer under this Agreement, or (iii) is not generally known to the public, and that is maintained by Staktek as confidential, which information should
reasonably be understood by Manufacturer, because of the circumstances of disclosure or the nature of the information itself, to be proprietary and confidential to Staktek. Confidential Information does not include information that (i) now or
later becomes generally available to the public without fault of Manufacturer; (ii) is rightfully in Manufacturer’s possession without an obligation of confidentiality prior to its disclosure by Staktek; or (iii) is obtained by
Manufacturer without obligation of confidentiality or limitation on use from a third party who has the right to so disclose it. 
 “Engineering Changes” means those mechanical, electrical, or other design changes or specification changes made to or with respect to the Product or the manufacture process which if made could affect the schedule,
performance, quality, yield, reliability, availability, price, Lead Time, serviceability, appearance, dimensions, tolerances, safety or cost of the Product. 
 “Flex Circuits” shall have the meaning set forth in Section 3.1. 
  

 # # #  Confidential treatment has been requested for portions of this exhibit. Information for which
confidential treatment has been requested has been omitted and is noted with “***”. A complete version of this exhibit has been filed separately with the Securities and Exchange Commission. 

 EXHIBIT 10.2 
 CONFIDENTIAL TREATMENT REQUESTED—EDITED COPY 
  

 “Intellectual Property” shall mean all general intangibles
for which any right, title, or interest exists, now or in the future, whether worldwide or in individual countries, in political subdivisions or regions, or pursuant to treaty or multilateral compact, under any law with respect to patents,
copyrights, semiconductor chip and mask works, trade secrets, trademarks, trade dress, unfair competition, neighboring rights, moral rights, publicity or privacy, or any laws providing proprietary rights of a nature similar to any the foregoing; and
any and all such rights, titles, and interest associated with such intangibles (including all goodwill associated therewith, all rights to priority worldwide, and all rights and claims for past, present and future infringements and
misappropriations) and all governmental applications, certificates, filings, registrations, patents, notifications, disclosures and other documents relating thereto, including all provisionals, divisionals, continuations, continuations-in-part,
reissues, reexaminations, renewals, revivals, restorations, and extensions thereof now or hereafter in force and effect. 
 “Lead Time” means the period of time required by Manufacturer to schedule, manufacture, and deliver finished Products in the quantities required to be delivered, provided that Flex Circuits necessary to manufacture
such quantities of Products are on-hand. 
 “Orders” means a purchase order issued by Staktek and
accepted by Manufacturer for Product to be manufactured by Manufacturer during the term of this Agreement in accordance with its terms and conditions. 
 “Product” means solely the stacked memory integrated circuit modules identified as Staktek’s Performance Stakpak® manufactured by Manufacturer for Staktek under this Agreement, and no other products unless agreed upon by both parties
in writing. 
 “Specifications” means the information and instructions set forth in
Schedule C. The Specifications are provided to Manufacturer by Staktek for the purpose of manufacturing Product and specifying required Product quality and yield, and include: drawings, schematics, bill of materials, assembly, test and
control procedures, quality criteria, work instructions and processes, component specifications, diagrams, mask works, documentation and planning. 
 2.
MANUFACTURING 
 2.1. Manufacturing. Subject to and in accordance with the terms and conditions of this Agreement, commencing on or
about May 2006, Manufacturer will manufacture Product in the Dominican Republic in accordance with the terms set forth in this Agreement and deliver the Product as set forth in Staktek’s respective Orders for Product. Orders shall be limited to
Products to be manufactured for HP under contract with Staktek and, if Manufacturer has Excess Capacity (as defined below) that Staktek desires to use, to manufacture Products for Staktek or other Staktek customers upon separately written and agreed
upon terms and conditions. 
 2.2. Consigned Equipment. Staktek shall provide Manufacturer with the production equipment listed in
Schedule B (“Consigned Equipment and Equipment to be Purchased”) at no cost to Manufacturer except as set forth in this Section 2.2. Consigned Equipment and Equipment to be Purchased shall be in good,
operating condition. 
  

 # # #  Confidential treatment has been requested for portions of this exhibit. Information for which
confidential treatment has been requested has been omitted and is noted with “***”. A complete version of this exhibit has been filed separately with the Securities and Exchange Commission. 
 2 

 EXHIBIT 10.2 
 CONFIDENTIAL TREATMENT REQUESTED—EDITED COPY 
  

 2.2.1 Staktek shall retain all right, title, and interest in and to the Consigned
Equipment, subject only to Manufacturer’s right to use the Consigned Equipment in performance of this Agreement in accordance with its terms and conditions. Manufacturer shall not permit, and shall take all necessary action to prevent, any
Encumbrance on any Consigned Equipment or any of Staktek’s right, title, or interest in or to any Consigned Equipment, except for Encumbrances on Consigned Equipment caused by Staktek. As used herein, the term
“Encumbrance” means any lien; pledge; hypothecation; mortgage; security interest; escrow; charge; equity interest; option; right of first refusal; preemptive right; obligation; undertaking; license; claim; demand; community
property right or interest; joint management, control, or disposition right or interest; or any other restriction, condition or encumbrance of any kind, including any restriction on use, transfer, receipt of income, or exercise of any other
attribute of ownership or possession. 
 2.2.2 Risk of loss of or damage to Consigned Equipment shall be borne by
Manufacturer at all times while Consigned Equipment is in Manufacturer’s possession or control, at Manufacturer’s facilities, or in transit to Manufacturer. Transportation and crating of Consigned Equipment to Manufacturer’s
facilities shall be the responsibility of Manufacturer. 
 2.2.3 Unless Consigned Equipment is purchased from Staktek on
mutually agreeable written terms, Consigned Equipment shall be used only by Manufacturer and only for manufacture of Products pursuant to Orders and Excess Capacity, in each case in accordance with the terms and conditions of this Agreement.

 2.2.4 Manufacturer shall be responsible for all costs associated with the maintenance and repair of the Consigned
Equipment, which Manufacturer may perform or have performed by subcontractors of Manufacturer’s choice on Manufacturer’s premises. Maintenance of Consigned Equipment will be based upon approved Staktek practices. Manufacturer will be
responsible for maintaining quality records on any and all maintenance performed on the Consigned Equipment. Staktek reserves the right to audit maintenance records and procedures at its discretion with reasonable written notice to Manufacturer.
Manufacturer will be responsible for any damage caused by failure to follow Staktek’s published procedures, which shall be provided on or before the Effective Date of this Agreement. 
 2.2.5 Staktek agrees to sell to Manufacturer one piece of equipment set forth on Schedule B. Except for as set forth in Section 2.2
above, this equipment is being provided “as is” and without any warranties, including implied warranties of merchantability and fitness for a particular purpose. 
 2.3. Manufacturing Facilities. Manufacturer shall manufacture Product in the Dominican Republic only in adequate, qualified manufacturing
facilities, with all necessary labor and equipment for manufacturing (the “Approved Site”). Manufacturer shall pay for and retain title to all other equipment used for the manufacture of Product, and all costs relating to
manufacturing of Products shall be borne by Manufacturer, except for the expense of Flex Circuits, the capital costs of Consigned Equipment, freight for shipment of Flex Circuits to and from Manufacturer (except as set forth in this Agreement), and
freight for shipment of Products to HP (which freight shall be paid directly by HP). Staktek shall define the manufacturing and test processes for the Product and work with the Manufacturer to set up such processes at the Approved Site. The adequacy
of the Manufacturer’s facilities shall be reasonably determined by Staktek’s requirements outlined in Staktek’s ISO 9001 certification. Manufacturer shall 

  

 # # #  Confidential treatment has been requested for portions of this exhibit. Information for which
confidential treatment has been requested has been omitted and is noted with “***”. A complete version of this exhibit has been filed separately with the Securities and Exchange Commission. 
 3 

 EXHIBIT 10.2 
 CONFIDENTIAL TREATMENT REQUESTED—EDITED COPY 
  

 
not subcontract any part of the manufacturing process, alter the manufacturing process or the Consigned Equipment, or change the manufacturing location of
Products without first obtaining the written permission of Staktek. Manufacturer will be responsible for all costs related to manufacturing the Product except as set forth in this Section 2.3 and 2.4, including equipment purchases and staffing
employees. 
 2.4. Training and Support. Manufacturer will send employees to Staktek’s facility in Reynosa, Mexico so that
Staktek employees can provide training. Manufacturer will cover all costs of its employees associated with this training. Staktek agrees to make its employees available to train Manufacturer’s employees on a schedule mutually agreed by the
parties. 
 2.4.1 After Staktek provides training to Manufacturer’s employees in Reynosa, Staktek agrees to send
employees to Manufacturer’s facility in the Dominican Republic to train Manufacturer’s employees on the required manufacturing processes. Staktek will cover all costs of its employees associated with this training. Staktek agrees to
install the Consigned Equipment and Equipment to be Purchased set forth on Schedule B at Manufacturer’s facility in the Dominican Republic and to ensure that such Equipment is in good, operating condition, both at Staktek’s expense.

 2.5. Staktek Personnel. To the extent reasonably necessary, Staktek may place employees, contractors, agents, or others
(“Staktek Personnel”) at the Approved Site. Manufacturer shall cooperate with Staktek Personnel and provide adequate accommodations at the Approved Site to allow Staktek Personnel to observe all facets of manufacturing operations
(including subassembly work, quality testing, rework, packaging and shipping). 
 3. FLEX CIRCUITS AND RAW MATERIALS 
 3.1. Procurement. Staktek shall consign to Manufacturer the formed flex circuits needed to manufacture the Product (the “Flex
Circuits”). Staktek shall arrange to provide the Flex Circuits at no cost to Manufacturer, DDP (Incoterms 2000) Manufacturer’s facility in Dominican Republic. Risk of loss or damage will pass to Manufacturer upon delivery of the
Flex Circuits to Manufacturer. Manufacturer shall supply at its expense all other raw materials, components and supplies, other than Flex Circuits, needed to manufacture the Product (the “Raw Materials”). 
 3.2. Receipt, Inspection, Storage and Handling of Flex Circuits. Manufacturer shall ensure that the Flex Circuits are adequately stored and
handled so as to prevent any loss or damage due to environmental conditions, accident, theft, or vandalism. Manufacturer bears full responsibility for (i) damage to or loss of Flex Circuits resulting from failure to store and handle in
accordance with the requirements set forth in this Agreement and (ii) the consequences of such damage on Lead Times and other performance required under this Agreement. 
 3.3. Title to and Use of Flex Circuits. Manufacturer will not acquire title to any Flex Circuits (or any designs, associated intellectual property
or other features or parts of any Flex Circuits). Manufacturer will use the Flex Circuits only for purposes of performing its obligations under this Agreement. Following termination of this Agreement, Manufacturer will ship any remaining Flex
Circuits to Staktek at Staktek’s expense or, at Manufacturer’s option, purchase such Flex Circuits at a price mutually agreed upon in writing by the parties. During the term of this Agreement, Manufacturer shall not purchase any material
substantially equivalent to any Flex Circuits from anyone other than Staktek for use in the manufacture of Products. If Lead Time conflicts arise that will inhibit the 

  

 # # #  Confidential treatment has been requested for portions of this exhibit. Information for which
confidential treatment has been requested has been omitted and is noted with “***”. A complete version of this exhibit has been filed separately with the Securities and Exchange Commission. 
 4 

 EXHIBIT 10.2 
 CONFIDENTIAL TREATMENT REQUESTED—EDITED COPY 
  

 
fulfillment of orders placed by Staktek, then Manufacturer will notify Staktek and Staktek may elect to increase the inventory of such Flex Circuits on hand
at the Approved Site. Lead Time is subject to change based on the availability of Flex Circuits on-hand. 
 3.4 Insurance. Risk of
loss of or damage to the Flex Circuits shall be borne by Manufacturer at all times while the Flex Circuits are in Manufacturer’s possession or control, at Manufacturer’s facilities. 
 4. ORDERS 
 4.1. Orders. Orders for Product
shall be submitted by Staktek to Manufacturer and shall contain the following information: 
 (a) Order number and issue date;

 (b) Part numbers and revision levels being ordered; 
 (c) Quantities and lot sizes; 
 (d) Type and quantity of components to be consigned by Staktek to Manufacturer and the delivery date to Manufacturer of such consigned components; 
 (e) Delivery Dates and locations, subject to Lead Time minimums set forth in Schedule A; and 
 (f) Other terms as determined by Staktek and accepted in writing by Manufacturer. 
 4.2. Acceptance of Orders. Manufacturer shall be entitled to accept or reject each Order in writing within five (5) business days after
receipt. No provisions contained in any acceptance or rejection notice or correspondence related thereto shall constitute a part of the agreement between the parties, which shall be exclusively controlled by this Agreement. This Agreement does not
constitute an Order. In addition, in the event that the Order placed by Staktek is rejected by, Staktek shall reserve the right to manufacture the Product to fulfill the Order or portion of the Order that Manufacturer rejected. 
 4.3. Pricing. Staktek shall pay Manufacturer $*** for each individual Product produced by Manufacturer for HP on Staktek’s behalf under the
terms of this Agreement. 
 4.4 Reporting. Manufacturer will provide to Staktek the following reports at the beginning of each
business day, to cover the Product information set forth below since the previous report, as well as a breakdown by day in the event a report includes holidays or weekends: 
 a. the number of Products shipped; 
 b. the current Flex Circuit inventory; 
 c. the current work-in-process; and 
 d. a list of all finished goods that have not been shipped. 
 4.5 Payment. Staktek shall pay Manufacturer the earlier of (i) within forty-five (45) days from the date of shipment to HP or (ii) net five (5) business days from Staktek’s receipt of
payment from HP. Payment of invoices shall not constitute final acceptance of the Product. Payment shall be in U.S. Dollars by wire transfer directly to Manufacturer’s bank. Manufacturer shall submit invoices within ten (10)

  

 # # #  Confidential treatment has been requested for portions of this exhibit. Information for which
confidential treatment has been requested has been omitted and is noted with “***”. A complete version of this exhibit has been filed separately with the Securities and Exchange Commission. 
 5 

 EXHIBIT 10.2 
 CONFIDENTIAL TREATMENT REQUESTED—EDITED COPY 
  

 
business days of shipment, and the invoices shall include information customarily found on invoices. Notwithstanding anything to the contrary, Manufacturer
shall have the right to invoice and payment as provided in this Section 4.5 in the event of stoppage of shipments relating to causes outside of Manufacturer’s control, such as Flex Circuits or consigned components pursuant to
Section 6.4. 
 4.6 Credit. Amounts owed to Staktek for warranty claims, undisputed discrepancies on paid invoices and other
amounts payable under this Agreement will be, at Staktek’s option, either (i) paid to Staktek in U.S. Dollars or, (ii) credited to Staktek against future invoices payable to Manufacturer. 
 5. DELIVERY 
 5.1. Shipping/Risk of Loss.
Manufacturer will ship all Products FOB (Incoterms 2000) Manufacturer’s facility in Dominican Republic. Staktek will be responsible for all freight charges for delivery of Product to HP, unless Manufacturer is provided HP’s billing
account. Title will pass to HP when Manufacturer delivers the Product to the shipper in the Dominican Republic. The carrier shall be selected by HP. 
 5.2. Marking, Packing, Labeling and Shipping Instructions. All Products shall be marked, prepared, packed, labeled and shipped in accordance with the terms of this Agreement, the Specifications, instructions
set forth in the Orders and other reasonable instructions, if provided in a timely manner by Staktek. Products shall not have any markings other than as specified by Staktek. 
 5.3. Delivery Dates. The delivery dates, which shall be no earlier than the Lead Times, shall be specified by Staktek in the Orders
(“Delivery Dates”). If Manufacturer determines that delivery of Product on Delivery Dates specified by Staktek is unlikely or impossible, Manufacturer shall immediately advise Staktek and provide Staktek with the reasons for
the delay and the proposed alternate date for delivery. Staktek shall have the right to either (i) accept the proposed alternate date for delivery or (ii) cancel all or part of the Order(s) subject to delivery delay. Once an Order has been
accepted by Manufacturer, the Delivery Dates cannot be changed or modified by Manufacturer without Staktek’s prior written consent, unless such changed of modified Delivery Dates are due to the unavailability of Flex Circuits. 
 5.4. Delivery Performance. The parties agree that timely delivery is of the essence to this Agreement. Delivery performance shall be measured
against the required Delivery Dates in the Orders against the on-dock delivery date of the Product to the location specified in the Orders. Unmet Delivery Dates related to the unavailability of Flex Circuits shall not be included in any measurement
of delivery performance. 
 5.5. Reschedule of Delivery Dates by Staktek. Staktek may reschedule an Order at any time, but only if at
least three (3) business days prior written notice is given to Manufacturer. 
 5.6. Cancellation of Orders by Staktek. Staktek
may cancel any Order at any time, but only if such Orders are canceled outside of the Lead Time and prior written notice is given to Manufacturer. In this case, the Flex Circuits and any other components or supplies provided by Staktek shall remain
consigned at Manufacturer’s facility for thirty (30) days and if not used after this time period, Manufacturer shall arrange for shipment to Staktek at Staktek’s expense, with risk passing to Staktek upon delivery to the carrier.

  

 # # #  Confidential treatment has been requested for portions of this exhibit. Information for which
confidential treatment has been requested has been omitted and is noted with “***”. A complete version of this exhibit has been filed separately with the Securities and Exchange Commission. 
 6 

 EXHIBIT 10.2 
 CONFIDENTIAL TREATMENT REQUESTED—EDITED COPY 
  

 6. TESTING AND QUALITY SPECIFICATIONS 
 6.1. Conformance with Specifications. All Products shall be manufactured and tested by Manufacturer in accordance with the Specifications set forth
in Schedule C. 
 6.2. Inspection of Manufacturing Facilities. If inspection is requested in writing by Staktek, Manufacturer will
immediately facilitate reasonable on-site visits and inspections by Staktek during operating hours for the purpose of qualification and monitoring production processes of Manufacturer and its subcontractors. 
 6.3. Quality Assurance Data. Manufacturer agrees to provide inspection, quality, yield and reliability data on a weekly basis or as otherwise
reasonably requested in writing by Staktek. Data provided will include process throughput, process yields, quality control metrics for critical dimensions, statistical tracking of test results, calibration reports and incoming inspection reports and
procedures. 
 6.4. Stopping Shipments. If Staktek reasonably has concerns about Manufacturer’s quality or yield of Product,
Staktek in writing may request Manufacturer to stop shipments. Such stoppages do not relieve Manufacturer of its delivery obligations unless such stoppages relate to causes outside of Manufacturer’s control, such as Flex Circuits or consigned
components. The parties shall work together to allow production to resume as promptly as practicable. Product rejected under the warranty provision pursuant to section 10.1 herein or held at any customer’s facility due to quality variances or
non-conformity with Staktek’s specifications will be the responsibility of Manufacturer, with Staktek’s sole remedy being pursuant to section 10.1 herein, and all corrective actions must be approved by and coordinated with Staktek prior to
communications with the customer. 
 6.5 Manufacturing Attrition Loss and Test Yields. Except as otherwise provided,
Manufacturer’s manufacturing attrition loss prior to any rework shall be one-half of one percent (0.5%) or less, calculated on a per-part-type basis. In the event that the manufacturing attrition loss on a calendar monthly basis prior to any
rework exceeds one-half of one percent (0.5%), or such other percentage as may be agreed in writing between the parties from time to time, Manufacturer shall be responsible for any excess over one-half of one percent (0.5%). In addition, in the
event that Manufacturer’s manufacturing attrition loss prior to any rework exceeds these percentages (or such other percentage as may be agreed in writing between the parties from time-to-time as to a specific product) during any month and
except as otherwise provided, Manufacturer shall reimburse Staktek for the full replacement cost of the Flex Circuits, DRAM or other memory type and other supplies provided by Staktek and Staktek’s customer, and Staktek shall manufacture the
Products, if necessary to deliver them to its customer as directed to do so. Manufacturer shall, at its sole expense, rework or salvage (including shipping as designated by Staktek) all Products that fail any of the tests that Manufacturer is
required to perform hereunder or failed Products returned. Manufacturer shall notify Staktek if it believes that the Products are defective, faulty or damaged as soon as reasonably possible after discovery of the defect, fault or damage. Any
scrapped, rejected, defective, faulty or damaged Products, Flex Circuits or memory shall be delivered as directed by Staktek at Manufacturer’s expense, if such condition is caused by Manufacturer. 
 Staktek agrees to provide Flex Circuits for all Orders and agrees that Manufacturer does not need to reimburse Staktek for yield loss of Flex Circuits of
up to one half of one percent (0.5%). In the event Manufacturer requires additional Flex Circuits from Staktek, Staktek agrees to provide them to Manufacturer at Staktek’s cost (currently $*** per Flex Circuit, which price is subject to
change), so that 

  

 # # #  Confidential treatment has been requested for portions of this exhibit. Information for which
confidential treatment has been requested has been omitted and is noted with “***”. A complete version of this exhibit has been filed separately with the Securities and Exchange Commission. 
 7 

 EXHIBIT 10.2 
 CONFIDENTIAL TREATMENT REQUESTED—EDITED COPY 
  

 
as long as Manufacturer pays all shipping costs and they are shipped by Staktek Ex Works (Incoterms 2000) Staktek’s facility, with title and risk of
loss passing to Manufacturer when Staktek makes them available to shipper at Staktek’s facility. 
 6.6 Defective, Faulty or Damaged
Consigned Components. If components consigned by Staktek to Manufacturer are damaged at or prior to delivery, then Manufacturer shall return such consigned components to Staktek, and the quantity of Products ordered shall be automatically
reduced. Consigned components returned shall be shipped to Staktek Ex Works (Incoterms 2000) Manufacturer’s facility in Dominican Republic. Staktek shall bear risk of loss of or damage to such consigned components. If components consigned by
Staktek cannot be reused because of defective, faulty or damaged components consigned by a party other than Staktek, SMART shall not be responsible for reimbursing Staktek for such unusable components. 
 7. ENGINEERING CHANGES 
 7.1. Engineering
Changes. The parties recognize that from time to time, Manufacturer may request in writing Engineering Changes (“ECR”) or that Staktek will notify Manufacturer in writing of Engineering Changes
(“ECN”). 
 7.2. Engineering Changes Requested by Manufacturer. Manufacturer agrees to notify Staktek in
writing of any proposed Engineering Changes and any requests using an ECR process, and, if applicable, will provide Staktek with drawings or samples of the requested Product revision. The notification shall also set out (i) a meaningful and
detailed description of the proposed change(s), the purpose therefore and actions to be taken to implement the change, including Manufacturer’s factory and service implementation plans; (ii) the anticipated schedule for implementation of
the change(s) and a target implementation date and quantity of parts to be made prior to the implementation; (iii) identification of affected Staktek part numbers; (iv) redlined copies of updated drawings; (v) a test report, where
required; (vi) any anticipated or proposed price changes (vii) other relevant technical and logistic considerations, including quality and reliability data to the extent available, as well as any changes that may result there from; and,
(viii) any additional information requested by Staktek. Staktek will review the feasibility of the implementation of the proposed ECR. If changes to the Delivery Dates or new or changed costs may result from the ECR, the Delivery Dates and new
prices will also be reviewed. Staktek will advise Manufacturer in writing of its decision with respect to the proposed ECR within ten (10) business days after receipt of Manufacturer’s notification unless Staktek determines and notifies
Manufacturer in writing that a longer period is required to conduct other testing, whereupon the period shall be extended by a reasonable time to enable such other testing to be completed. If the ECR is not approved by Staktek, Manufacturer shall
not implement the respective Engineering Changes. If the ECR is approved by Staktek, a formal ECN will be released by Staktek to implement the Engineering Changes as documented in the ECR process. 
 7.3. Engineering Changes Requested by Staktek. Staktek shall be entitled to make changes in the Specifications, designs, approved components lists
and bills of materials for the Product. Staktek agrees to notify Manufacturer in writing of all Engineering Changes and ECNs, with appropriate documentation. Manufacturer will report to Staktek within five (5) business days of Staktek’s
notification regarding the impact on Manufacturer of the Engineering Changes (including changes to Lead Time, quality, yield, new or changed costs, and obsolescence of work-in-process, Flex Circuits, Raw Materials and unshipped Product). Staktek may
request a shorter response time when the circumstances of the ECN 

  

 # # #  Confidential treatment has been requested for portions of this exhibit. Information for which
confidential treatment has been requested has been omitted and is noted with “***”. A complete version of this exhibit has been filed separately with the Securities and Exchange Commission. 
 8 

 EXHIBIT 10.2 
 CONFIDENTIAL TREATMENT REQUESTED—EDITED COPY 
  

 
require it, and Manufacturer shall use its best efforts to respond within the shortened time. Staktek will review the material cost impact of the
implementation of the ECN. Staktek will notify Manufacturer in writing, within ten (10) business days after receipt of Manufacturer’s feasibility report, of Staktek’s final decision as to the implementation of the ECN and the
implementation dates. 
 7.4. Effect of Changes. Unless otherwise specified in an Order, changes to the Specifications shall apply to
all Product shipped after the effective date of the Engineering Changes as outlined in the ECN. 
 8. AUDITS 
 8.1. Books; Statements. Manufacturer agrees to maintain true, accurate and complete books and records showing its operations and transactions
relating to the manufacturing of Product and all receipts and consumption of Flex Circuits and Raw Materials, and to keep such books and records available for inspection for at least two (2) years after the termination of this Agreement.

 8.2. Access. Staktek shall have access to and may inspect and copy the books, accounts and records of the Manufacturer maintained
in accordance with Section 8.1 for the last four (4) full quarters, provided that any request for access to the books, accounts and records must be reasonable. 
 8.3. Audits. In addition to the foregoing, Staktek will have the right, upon reasonable notice, to have Manufacturer’s books, records and other documents and materials inspected to confirm compliance with
this Agreement. Audits may be on either a continuous or a periodic basis or both, and may be conducted by employees of Staktek, or of an Affiliate of Staktek, or by independent auditors retained by Staktek. Manufacturer agrees to provide reasonable
access to its facilities, including manufacturing areas, and reasonable assistance in helping such auditors to understand any relevant procedures. Inspections shall in no way relieve Manufacturer of its obligations under this Agreement. 

9. INSPECTION AND ACCEPTANCE 
 9.1.
Inspection/Testing. Product may be subject to inspection and testing by Staktek or its customers, but no such inspection or testing shall relieve Manufacturer of any of its obligations or responsibilities under this Agreement. Final
inspection and acceptance of Product shall be at the specified delivery point, or other specified and agreed location. Staktek reserves the right to reject Product that contains defects in workmanship or does not conform to the Specifications,
samples, or required test methodology. If the lot acceptance criteria set out in Schedule C are not met, Staktek may reject an entire lot and suspend further deliveries of Product pending resolution and corrective action in accordance with
Section 9.2. 
 9.2. Corrective Action. Staktek may, in accordance with this Section 9, at its option, require prompt repair
or replacement of rejected items at Manufacturer’s expense. Repaired or replaced rejected Products shall be subject to the same manufacturing, inspection, acceptance and warranty provisions of this Agreement as Product originally delivered
under any Order, and subject to delivery time requirements set by Staktek. 
 10. WARRANTY PROVISIONS 
 10.1. Manufacturer Warranties. 
  

 # # #  Confidential treatment has been requested for portions of this exhibit. Information for which
confidential treatment has been requested has been omitted and is noted with “***”. A complete version of this exhibit has been filed separately with the Securities and Exchange Commission. 
 9 

 EXHIBIT 10.2 
 CONFIDENTIAL TREATMENT REQUESTED—EDITED COPY 
  

 10.1.1 Manufacturer warrants that all Products furnished under any Orders issued
hereunder shall be free from defects in Manufacturer workmanship and materials, and shall be built in accordance with all applicable Specifications and other descriptions, samples, and drawings provided under this Agreement and methods and processes
required hereunder. If within one year from the date of delivery, Product furnished by Manufacturer are shown to be defective due to workmanship, due to failure to conform to all applicable Specifications and other descriptions, samples and drawings
provided under this Agreement and methods and processes required hereunder, or due to material defect resulting from manufacturing damage or mishandling, Manufacturer agrees to repair, replace, or make good the defects and other non-conformances
within fifteen (15) calendar days after receipt of such defective Product, as requested by Staktek and at no cost to Staktek. Should Product returns at any time exceed the average anticipated rate of returns, the parties will mutually agree as
to an acceptable repair or replacement timeframe. Staktek shall notify Manufacturer within thirty (30) calendar days of discovery of the defect. All Product returns shall be shipped at Manufacturer’s expense, with title and risk of loss or
damage passing to Manufacturer upon delivery to Manufacturer’s designated carrier or, in the absence of such designation, to the carrier selected by Staktek or Staktek’s customer. Manufacturer shall bear all costs of return transportation
to Staktek’s designated delivery point. Risk of loss on replacement or repaired Product being returned to Manufacturer will pass to Staktek upon delivery of Product. The carrier shall be selected by Staktek. Notwithstanding anything to the
contrary contained in this Agreement, Manufacturer gives no warranty whatsoever for any components of the Products, including without limitation Flex Circuits, consigned to Manufacturer by Staktek. 
 10.1.2 Staktek represents and warrants that the Consigned Equipment will be sufficient for Manufacturer to produce Products at least in
the capacities set forth in Schedule D, provided that Flex Circuits deliveries are timely and the Consigned Equipment has downtime that does not exceed the estimated downtime set forth in Schedule D. Any availability of the Consigned
Equipment to produce Product in excess of that set forth in Schedule D shall be “Excess Capacity” available to Staktek under Section 2.1. 
 10.2. Staktek Intellectual Property Indemnity. Subject to the limitations set forth below, Staktek will indemnify, defend and hold harmless
Manufacturer, its affiliates, directors, officers, employees, contractors, agents and customers (the “Manufacturer Parties”), at Staktek’s expense against and from any and all claims, suits, losses, liabilities, damages, costs or
expenses (including reasonable attorneys’ fees) (collectively “Losses”) threatened against or incurred by the Manufacturer Parties to the extent based upon an allegation that the Products or the manufacture of the Products infringe
any third party’s United States or foreign patent, copyright, trademark or intellectual property rights, only if: (i) Manufacturer promptly notifies Staktek in writing of such allegation(s); (ii) Manufacturer provides Staktek with
sole control and authority to defend, resolve or settle such allegation(s) (except that Staktek may not enter into any settlement that would result in any liability to the Manufacturer Parties without Manufacturer’s prior written consent); and
(iii) Manufacturer provides Staktek, at Staktek’s expense, with all reasonable assistance and information requested by Staktek for the defense and settlement of such claim(s). 
 If the manufacture of the Products is enjoined as a result of such suit or, in Staktek’s opinion, is likely to be enjoined, then Staktek, at its
sole option and at no expense to Manufacturer, may, in addition to its indemnification obligation set forth herein, either (i) obtain for Manufacturer the right to make Products; (ii) offer an alternative Staktek Intellectual Property that
is not subject to the allegation(s); or (iii) terminate this Agreement upon notice to Manufacturer. In the event Staktek elects to terminate this 

  

 # # #  Confidential treatment has been requested for portions of this exhibit. Information for which
confidential treatment has been requested has been omitted and is noted with “***”. A complete version of this exhibit has been filed separately with the Securities and Exchange Commission. 
 10 

 EXHIBIT 10.2 
 CONFIDENTIAL TREATMENT REQUESTED—EDITED COPY 
  

 
Agreement as set forth in (iii) above, Manufacturer shall be permitted to ship Products that have been manufactured (or in WIP and are expected to be
shipped). For the avoidance of doubt, the provisions of this Section represent an option of Staktek and not an obligation. 
 Staktek will
have no obligation under this Section to defend or indemnify the Manufacturer for any Losses that arise from: (i) the manufacture of the Products with technologies not furnished by Staktek, if such Losses would have been avoided by the
manufacture of the Products alone; (ii) the modification or improvement of any portion of the Products by a party other than Staktek, if such Losses would have been avoided if such modification or improvements had not been made; (iii) the
modification of any portion of the Products by Manufacturer; or (iv) use of the Products beyond the scope of the rights granted in this Agreement. 
 THE FOREGOING ARE STAKTEK’S SOLE AND EXCLUSIVE OBLIGATIONS, AND MANUFACTURER’S SOLE AND EXCLUSIVE REMEDIES, WITH RESPECT TO INFRINGEMENT OR MISAPPROPRIATION OR INFRINGEMENT OF THIRD-PARTY INTELLECTUAL
PROPERTY RIGHTS. 
 10.3. No Warranty on Confidential Information. Staktek shall not be liable for any errors or omissions in the
Confidential Information or for the use or the results of use of Confidential Information. ANY AND ALL INFORMATION DISCLOSED UNDER THIS AGREEMENT IS PROVIDED “AS IS” WITHOUT ANY WARRANTY OF ANY KIND, AND STAKTEK HEREBY DISCLAIMS ANY
IMPLIED WARRANTIES, INCLUDING MERCHANTABILITY, TITLE AND FITNESS FOR A PARTICULAR PURPOSE.  
 10.4. No Other Warranties. EXCEPT
AS EXPRESSLY SET FORTH IN THIS SECTION 10, NEITHER PARTY MAKES ANY WARRANTIES, EXPRESS OR IMPLIED, INCLUDING WARRANTIES OF MERCHANTABILITY, TITLE, OR FITNESS FOR A PARTICULAR PURPOSE, OTHER THAN THOSE WARRANTIES IMPLIED BY AND INCAPABLE OF
EXCLUSION, RESTRICTION OR MODIFICATION UNDER APPLICABLE LAW. THE TERM OF ANY IMPLIED WARRANTIES THAT CANNOT BE DISCLAIMED ARE LIMITED TO THE TERM OF THIS AGREEMENT. 
 11. LIMITATION OF LIABILITY; INDEMNIFICATION 
 11.1 EXCEPT WITH RESPECT TO A BREACH OF ARTICLES 10 OR
12, IN NO EVENT SHALL EITHER PARTY BE LIABLE TO THE OTHER OR ANY OTHER PERSON OR ENTITY (UNDER ANY CONTRACT, NEGLIGENCE, STRICT LIABILITY OR OTHER THEORY) FOR SPECIAL, INCIDENTAL, CONSEQUENTIAL OR PUNITIVE DAMAGES ARISING OUT OF OR RELATED TO THE
SUBJECT MATTER OF THIS AGREEMENT, EVEN IF THE PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES OR LOSSES. EXCEPT WITH RESPECT TO A BREACH OF ARTICLES 10 OR 12, EACH PARTY’S LIABILITY TO THE OTHER FOR DAMAGES FOR ANY CAUSE OF ACTION
WHATSOEVER ARISING UNDER THIS AGREEMENT SHALL BE LIMITED TO THE AMOUNT PAID BY STAKTEK TO MANUFACTURER IN THE 12 MONTHS PRIOR TO THE EVENT GIVING RISE TO THE LIABILITY, REGARDLESS OF THE FORM OF ACTION. EACH PARTY ACKNOWLEDGES THAT THE LIMITATIONS
OF LIABILITY SET FORTH IN THIS SECTION IS REASONABLE, 

  

 # # #  Confidential treatment has been requested for portions of this exhibit. Information for which
confidential treatment has been requested has been omitted and is noted with “***”. A complete version of this exhibit has been filed separately with the Securities and Exchange Commission. 
 11 

 EXHIBIT 10.2 
 CONFIDENTIAL TREATMENT REQUESTED—EDITED COPY 
  

 
AND IS AN ESSENTIAL PART OF THE AGREEMENT WITHOUT WHICH NEITHER PARTY WOULD BE WILLING TO ENTER INTO THIS AGREEMENT. 
 11.2 EXPRESS NEGLIGENCE AND STRICT LIABILITY. THE INDEMNIFICATION PROVISION PROVIDED FOR IN THIS AGREEMENT HAS BEEN EXPRESSLY NEGOTIATED IN EVERY
DETAIL, IS INTENDED TO BE GIVEN FULL AND LITERAL EFFECT AND SHALL BE APPLICABLE WHETHER OR NOT THE LIABILITIES, OBLIGATIONS, CLAIMS, JUDGMENTS, LOSSES, COSTS, EXPENSES OR DAMAGES IN QUESTION ARISE OR AROSE SOLELY OR IN PART FROM THE GROSS, ACTIVE,
PASSIVE OR CONCURRENT NEGLIGENCE, STRICT LIABILITY OR OTHER FAULT OF EITHER PARTY. EACH PARTY HEREBY EXPRESSLY ACKNOWLEDGES AND AGREES THAT THIS STATEMENT COMPLIES WITH THE “EXPRESS NEGLIGENCE RULE” AND CONSTITUTES CONSPICUOUS NOTICE.
NOTHING IN THIS CONSPICUOUS NOTICE IS INTENDED TO PROVIDE OR ALTER THE RIGHTS AND OBLIGATIONS OF THE PARTIES, ALL OF WHICH ARE SPECIFIED ELSEWHERE IN THIS AGREEMENT. 
 11.3 ACKNOWLEDGEMENT. EACH PARTY ACKNOWLEDGES THAT THE LIMITATIONS OF LIABILITY AND INDEMNITY PROVISIONS SET FORTH IN THIS SECTION 11 ARE REASONABLE, AND ARE AN ESSENTIAL PART OF THE AGREEMENT, WITHOUT
WHICH NEITHER PARTY WOULD BE WILLING TO ENTER INTO THIS AGREEMENT. 
 12. INTELLECTUAL PROPERTY, CONFIDENTIALITY AND EXCLUSIVITY 
 12.1. Ownership Of Intellectual Property. Manufacturer understands and agrees that: 
 12.1.1 Except for the limited, personal license grant in Section 12.3, Manufacturer does not acquire any ownership or other right,
title, or interest in or to any Intellectual Property relating to any Product or any technology pertaining to any Product or the making or testing of any Product (“Product IP”); 
 12.1.2 Manufacturer is not authorized to transfer or assign any ownership or other right, title, or interest in or to any Product IP;

 12.1.3 as between Manufacturer and Staktek, all Product IP belongs to Staktek; 
 12.1.4 Manufacturer will not engage in any attempt to license, patent, register as a trademark, service mark, or copyright, or otherwise
secure or infringe any of Staktek’s Intellectual Property; and 
 12.1.5 Manufacturer will not encourage or assist any
other person (whether or not affiliated with Manufacturer) to attempt to license, patent, register as a trademark, service mark, or copyright, or otherwise secure or infringe any of Staktek’s Intellectual Property. 
 12.2. Ownership of Intellectual Property in Engineering Changes. Manufacturer agrees that, between the parties, Staktek shall acquire and own all
Intellectual Property created with respect to, or arising from, the performance of this Agreement (including any Engineering Changes) (“Arising IP”). Accordingly, Manufacturer hereby irrevocably and unconditionally:

  

 # # #  Confidential treatment has been requested for portions of this exhibit. Information for which
confidential treatment has been requested has been omitted and is noted with “***”. A complete version of this exhibit has been filed separately with the Securities and Exchange Commission. 
 12 

 EXHIBIT 10.2 
 CONFIDENTIAL TREATMENT REQUESTED—EDITED COPY 
  

 12.2.1 grants, conveys, assigns, transfers, and sets over directly to Staktek all of
Manufacturer’s rights, titles, and interests in and to the Arising IP in the United States and throughout the world, whether now existing or later arising, including without limitation (i) all rights and remedies with respect to past,
present or future violations, infringements or misappropriations, (ii) the right to Staktek to file in its name applications for patents and like grants or protection for the Arising IP in any country or other jurisdiction worldwide, and
(iii) all international and foreign rights and priorities associated with the Arising IP; 
 12.2.2 agrees and promises
to grant, convey, assign, transfer and set over directly to Staktek all of such rights, titles, and interests in every such item (effective for all purposes as of the time such item is created by Manufacturer); and 
 12.2.3 in addition, (i) ratifies and consents to, and promises to provide all necessary ratifications and consents to, any action
that Staktek may be take or request with respect to any item of Arising IP; (ii) waives and releases all of Manufacturer’s rights, titles, and interests to every item of Arising IP with respect to Staktek and its acts or omissions; and
(iii) agrees not to assert any item of Arising IP against Staktek. 
 Manufacturer agrees to disclose to Staktek any Arising IP within thirty
(30) calendar days from the date that such Arising IP becomes known to Manufacturer. 
 12.3. Limited License Grant. Staktek
grants to Manufacturer a limited, non-exclusive, non-transferable, non-assignable, non-sublicensable, royalty-free license under Staktek Intellectual Property solely to make and deliver Products pursuant to Orders in strict accordance with the terms
and conditions of this Agreement. Products manufactured under this Agreement are excluded from the calculation of royalty that may be otherwise due under the Master Technology and Patent License Agreement between the parties. 
 12.4. No Implied Licenses. The express license set forth in Section 12.3, as well as the Master Technology and Patent License Agreement, are
the only licenses granted to Manufacturer by Staktek. No license is granted by Staktek by implication, estoppel, or otherwise, and no license, authority to infringe, or immunity from infringement liability shall be deemed to arise or exist as a
matter of law (i) under any Staktek Intellectual Property; (ii) to make, have made, use, lease, sell, offer to sell, import, supply and otherwise transfer any products other than Products made and delivered pursuant to Orders in strict
accordance with the terms and conditions of this Agreement; or (iii) to persons acquiring any Product or other apparatus or service from Manufacturer to make, use, lease, sell or otherwise transfer a Product or to use any process or method
involved in the use of a Product, other than as included in the licenses granted by Staktek to Manufacturer. 
 12.5. Confidentiality.
Manufacturer acknowledges that, in the course of performing its obligations hereunder, it will receive information that is confidential and proprietary to Staktek and which Staktek wishes to protect from public disclosure and unauthorized use.
Manufacturer shall not disclose any Confidential Information to any third party or use any Confidential Information for any purpose except as required in the performance of this Agreement. Manufacturer may disclose Confidential Information only to
its employees as required for Manufacturer’s performance of this Agreement (including employees of any of its wholly owned subsidiaries or corporate affiliates, agents or consultants who must be directly involved with the Confidential
Information for Manufacturer’s performance of this 

  

 # # #  Confidential treatment has been requested for portions of this exhibit. Information for which
confidential treatment has been requested has been omitted and is noted with “***”. A complete version of this exhibit has been filed separately with the Securities and Exchange Commission. 
 13 

 EXHIBIT 10.2 
 CONFIDENTIAL TREATMENT REQUESTED—EDITED COPY 
  

 
Agreement and who are identified to Staktek and bound in writing to keep such information confidential). Manufacturer shall give Confidential Information at
least the same level of protection as it gives its own confidential information of similar nature, but not less than a reasonable level of protection. Manufacturer’s confidentiality and use obligations under this Agreement shall survive for six
years from the date of its termination except with respect to trade secrets, which obligations shall have no termination date. Manufacturer may make disclosures of Confidential Information that are required by court order, provided that Manufacturer
(i) limits disclosure to the information specifically required; (ii) to the extent permitted by law, provides prompt prior notice of the requirement and allows Staktek to participate in any proceeding regarding disclosure; and
(iii) uses diligent efforts to obtain confidential treatment or a protective order if Staktek so desires, at Staktek’s expense. All Confidential Information shall remain the property of Staktek. 
 12.6. Injunctive Relief. Manufacturer acknowledges that the Confidential Information is highly valuable to Staktek, that Manufacturer’s
breach of its confidentiality and non-use obligations under this Agreement may cause irreparable harm to Staktek, and that monetary damages may not fully compensate Staktek for such harm. Therefore, in the event of a breach by Manufacturer of its
confidentiality and non-use obligations under this Agreement, Staktek may seek injunctive relief. Any such injunctive relief shall be cumulative and not in lieu of any other remedies at law or in equity available to Staktek. 
 12.7. Exclusivity. During the term of this Agreement, Manufacturer shall not use the Consigned Equipment or Flex Circuits consigned by Staktek to
Manufacturer for the manufacture of Products for HP or HP affiliates. 
 13. TERM & TERMINATION 
 13.1. Term. This Agreement shall commence on the Effective Date and, subject to the provisions of this Section 13, continue until May 31,
2007. This Agreement will automatically renew on a month-to-month basis, but either party can terminate it after May 31, 2007 by providing sixty (60) days prior written notice of termination to the other party. 
 13.2. Termination for Cause. Either party will have just cause to terminate this Agreement or suspend its performance hereunder, without judicial
or administrative notice or resolution, immediately upon written notice at any time if: 
 13.2.1 Breach. The other party or
any of its employees or representatives materially breach any obligation under this Agreement and such party fails to cure the breach to the notifying party’s satisfaction within thirty (30) calendar days after it demands such cure, except
with respect to (i) payment obligations, (ii) a breach of Manufacturer’s confidentiality obligations, or (iii) a breach by Manufacturer of Sections 2, 5, 7 and 12, each of which must be cured within five (5) business days of
notice; or 
 13.2.2 Cessation of Business. The other party ceases to conduct business in the normal course, is declared
insolvent, undergoes any procedure for the suspension of payment, makes a general assignment for the benefit of creditors, or a petition for bankruptcy, reorganization, dissolution or liquidation is filed by or against it. 
 13.3 Termination by Staktek. Staktek shall have just cause to terminate this Agreement immediately by written notice, prior to the end of the term
specified in Article 13.1, without judicial or 

  

 # # #  Confidential treatment has been requested for portions of this exhibit. Information for which
confidential treatment has been requested has been omitted and is noted with “***”. A complete version of this exhibit has been filed separately with the Securities and Exchange Commission. 
 14 

 EXHIBIT 10.2 
 CONFIDENTIAL TREATMENT REQUESTED—EDITED COPY 
  

 
administrative notice or resolution, in the event that, (i) a competitor of Staktek’s acquires a material direct or indirect ownership of or
controlling interest in Manufacturer, (ii) Orders placed by Staktek decrease to less than 5,000 units per month for three consecutive months, (iii) Staktek’s cost of Flex Circuits increases by more than ten percent (10%) from
Staktek’s cost on the Effective Date, (iv) Manufacturer’s yield losses are greater than or equal to five percent (5%) per month for two (2) consecutive months, or (v) Legal, governmental or regulatory changes are made
that result in increased costs to Staktek to operate under this Agreement, including as an example but not limited to, an increase in any tariff or other cost imposed on providing Flex Circuits or Consigned Equipment to Manufacturer. 
 13.4 Effects of Termination. Upon termination or expiration of this Agreement, each party will be released from all obligations and liabilities to
the other occurring or arising after the date of such termination, except that the obligations of the parties under this Agreement which, by their nature, would continue beyond termination or expiration of this Agreement, shall survive termination
or expiration of this Agreement. While termination will not relieve Manufacturer or Staktek from any liability arising from any breach of this Agreement, neither party will be liable to the other for damages of any sort solely as a result of
terminating this Agreement in accordance with its terms. Termination of this Agreement will be without prejudice to any other right or remedy of either party. Within fifteen (15) calendar days of termination of this Agreement, Manufacturer
shall at Staktek’s expense return to Staktek all Flex Circuits on hand and all Consigned Equipment. Risk of loss shall pass to Staktek upon delivery. 
 13.5 Duty to Mitigate Costs. Both parties shall, in good faith, undertake reasonable measures to mitigate the costs of termination. Regardless of the foregoing, Manufacturer has no right to sell Flex Circuits,
work in process, Products, or Consigned Equipment to any party without Staktek’s prior written consent. 
 14. FORCE MAJEURE 
 Neither party shall be liable for any delay or failure to perform any of its obligations hereunder during any period in which performance is delayed by
fire, flood, earthquake, war, embargo, riot or the intervention of any government authority or any other causes beyond reasonable control of the affected party. In such an event, the affected party shall promptly notify the other party of the
condition in writing. If the delay exceeds thirty (30) calendar days, this Agreement may be immediately terminated by either Manufacturer or Staktek upon writing notice to the other. 
 15. COVENANT NOT TO HIRE / SOLICIT 
 For one year
after the execution of this Agreement, each party agrees not to: 
 (i) employ, attempt to employ, contract with in any way
for any type of consideration, or assist any other person or entity to employ or contract with in any way for any type of consideration, any person who is an employee of the other party or who at any time during the preceding year was an employee of
the other party; and 
 (ii) solicit, encourage, or take any other action that is intended, directly or indirectly, to induce
any employee of the other party to terminate such employee’s employment with the other party, or interfere in any manner with the contractual or employment relationship between the other party and any 

  

 # # #  Confidential treatment has been requested for portions of this exhibit. Information for which
confidential treatment has been requested has been omitted and is noted with “***”. A complete version of this exhibit has been filed separately with the Securities and Exchange Commission. 
 15 

 EXHIBIT 10.2 
 CONFIDENTIAL TREATMENT REQUESTED—EDITED COPY 
  

 
of its employees, or hire or attempt to hire any former employee of the other party whose termination from employment has been effective for less than one
(1) year from the execution of this Agreement. 
 (iii) The foregoing Sections 15 (i) and (ii) shall not
be deemed to prohibit either party from engaging in general media advertising or solicitation that may be targeted to a particular geographic or technical area but that is not targeted towards employees of the other party. 
 16. MISCELLANEOUS 
 16.1. Insurance. On or
prior to the Effective Date, Manufacturer shall acquire insurance coverage for the Consigned Equipment, consigned Flex Circuits, consigned DRAM or other memory type and Product for which Manufacturer is responsible, naming Staktek as additional
insured, which coverage shall be written in an amount, on terms, and by a carrier acceptable to Staktek. Manufacturer agrees to provide broker evidence of insurance policy upon Staktek’s written request, and Manufacturer also agrees not to
reduce or eliminate such insurance coverage without providing at least fifteen (15) days’ prior written notice to Staktek. 
 16.2
Expenses. Except as otherwise specified in this Agreement, Staktek and Manufacturer agree to bear their own expenses in connection with the review, execution and performance of this Agreement. 
 16.3 Choice of Law. This Agreement shall be governed by and construed under the laws of the State of Texas without regard to conflicts of laws
provisions thereof. Any suit or other claim brought with respect to this Agreement shall be brought in the federal courts located in Travis County, Texas. Both parties hereby waive any objection to personal jurisdiction in any proceeding before such
courts and consent to personal jurisdiction in such courts. 
 16.4 Escalation of Disputes. The parties agree to work in good faith to
resolve any disputes that arise promptly, and to escalate any disputes in writing to the appropriate vice president or president of each party before pursuing legal action. If the applicable vice president or president of each party has not resolved
any dispute within ten (10) days following this escalation, then either party may pursue legal action. The escalation requirements in this Article shall not apply to alleged violations of Articles 2 or 12.5 of this Agreement. 
 16.5 Entire Understanding. This Agreement sets forth the entire understanding of the parties as to the subject matter hereof and supersedes all
previous negotiations, understandings, commitments and writings, including, without limitation, any Letter of Intent entered into between the parties with respect to the subject matter hereof. 
 16.6 Export Controls. Manufacturer acknowledges that the laws and regulations of the United States, including without limitation the Export
Administration Regulations (EAR), restrict the export and re-export of certain hardware, software, other commodities, technology and technical data of United States origin. Manufacturer agrees that it will not export or re-export, directly or
indirectly, any Product or Staktek Confidential Information, or any underlying Staktek information or technology in any form except in full compliance with all United States, foreign and other applicable laws and regulations. 
  

 # # #  Confidential treatment has been requested for portions of this exhibit. Information for which
confidential treatment has been requested has been omitted and is noted with “***”. A complete version of this exhibit has been filed separately with the Securities and Exchange Commission. 
 16 

 EXHIBIT 10.2 
 CONFIDENTIAL TREATMENT REQUESTED—EDITED COPY 
  

 16.7 Assignment. This Agreement shall not be assignable by Manufacturer without the prior
written consent of Staktek. Staktek may assign this Agreement or any license granted herein in its sole discretion. 
 16.8 The addresses of
the parties for the purpose of notices, reports and other communications shall be as follows: 
  
  

	 	Manufacturer:	Attn: General Counsel 

	 	  	4211 Starboard Drive 

	 	  	Fremont, CA 94538 

	 	  	Fax: 510 360-8500 

  

	 	Staktek:	8900 Shoal Creek Blvd., Suite 125 

	 	  	Austin, Texas 78757 

	 	  	Fax: 512/454-2598 

  

	 	  	Copy to: General Counsel 

	 	  	8900 Shoal Creek Blvd, Suite 125 

	 	  	Austin, Texas 78757 

	 	  	Fax: 512/454-2598 

 Any notice expressly provided for under this Agreement
shall be in writing, shall be given either by hand, by mail or facsimile, and shall be deemed sufficiently given if and when received by the party to be notified at its address specified under this Section 16.8 or if and when facsimiled, three
(3) days following the mailing by registered or certified mail, postage prepaid, or upon delivery by a reputable delivery service (overnight or same day) with a signature acknowledging delivery, in each case addressed to such party at such
address. Either party may by notice to the other change its address for receiving such notices. 
 16.9 Headings. The headings of the
articles of this Agreement are merely to facilitate reference and shall have no bearing on the interpretation of any of the provisions of this Agreement. 
 16.10 Amendment. This Agreement shall only be modified or amended by a writing duly signed by the authorized representatives of the parties. 
 16.11 Parties Bound. This Agreement shall inure to the benefit of, and be binding upon, the parties, their legal representatives and successors,
and their assigns insofar as the Agreement may be assignable. 
 16.12 Infringement by 3rd Party. Manufacturer agrees to promptly
notify Staktek of any known or suspected infringement or misappropriation of Staktek’s Intellectual Property. Staktek shall have no obligation to enforce its patents or the Staktek Intellectual Property against infringement or misappropriation
by a third party or to take any action with respect to such infringement or misappropriation, although the parties agree to discuss any known or suspected infringement of Staktek’s patents or misappropriation of Staktek’s Intellectual
Property. 
  

 # # #  Confidential treatment has been requested for portions of this exhibit. Information for which
confidential treatment has been requested has been omitted and is noted with “***”. A complete version of this exhibit has been filed separately with the Securities and Exchange Commission. 
 17 

 EXHIBIT 10.2 
 CONFIDENTIAL TREATMENT REQUESTED—EDITED COPY 
  

 16.13 Relationship of the Parties. Neither this Agreement nor any activities of the parties
pursuant to this Agreement shall be deemed to establish any partnership, agency, joint development project or joint venture between the parties. 
 16.14 Non-Waiver. The failure of either party to exercise any right hereunder or to insist upon performance of any of the terms or conditions of this Agreement shall not be construed as a waiver or relinquishment of any right to
insist upon future performance of any such term or condition. 
 THE AUTHORIZED REPRESENTATIVES OF THE PARTIES HAVE EXECUTED THIS AGREEMENT TO BE EFFECTIVE
AS OF THE EFFECTIVE DATE. 
  

									
	STAKTEK:	 		 	MANUFACTURER:
					
	By:	 	 /s/ Wayne Lieberman        
	 		 	 By:
	 	 /s/ Iain Mackenzie        

		 	 Print Name: Wayne Lieberman
 Title: President
and CEO
	 		 		 	 Print Name: Iain Mackenzie
 Title: President
and CEO

  

 # # #  Confidential treatment has been requested for portions of this exhibit. Information for which
confidential treatment has been requested has been omitted and is noted with “***”. A complete version of this exhibit has been filed separately with the Securities and Exchange Commission. 
 18 

 EXHIBIT 10.2 
 CONFIDENTIAL TREATMENT REQUESTED—EDITED COPY 
  

 SCHEDULE A—DELIVERY AND
IMPLEMENTATION SCHEDULE 
 For Orders issued by Staktek for Products, the minimum Lead Times are as follows:

 *** business days for Product forecasted two (2) weeks in advance. 
 Implementation—Technology Transfer 
  

					
	 •     Equipment Specification/facility requirements—
	    	***	 	
	 •     Equipment prepared for shipment—
	    	***	 	
	 •     Equipment in Transit to SMART—
	    	***	 	
	 •     Manufacturer Engineers Training @ Staktek MX—
	    	***	 	
	 •     Manufacturer Operators Training @ Staktek MX—
	    	***	 	
	 •     Staktek Engineers Install @ Smart PR—
	    	***	 	
	 •     Staktek Engineer Validate @ Smart PR—
	    	***	 	

  
  
  
  

			
	Version:            .    Last Revised:
                                
        	 	Manufacturer Acknowledges Revision by signing below                    
		
		 	 

  

 19 

 EXHIBIT 10.2 
 CONFIDENTIAL TREATMENT REQUESTED—EDITED COPY 
  

 SCHEDULE B—CONSIGNED EQUIPMENT
AND EQUIPMENT TO BE PURCHASED 
 Equipment
to be Purchased 
 Staktek agrees to sell to Manufacturer the Ismeca MP400, serial number Asset #M01082 (“Ismeca”) for US$***.
Manufacturer agrees to pay Staktek for the Ismeca within five (5) days of receiving it. 
 Consigned Equipment

 Manufacturer will be responsible for maintaining all Consigned Equipment based on Staktek’s published procedures for daily,
weekly, monthly and annual maintenance. Manufacturer will maintain quality records in compliance with Staktek’s ISO 9001 certification. 
  

								
	 Equipment
	  	Quantity	  	Value	  	Misc.
	 Epson Handler
	  	1	  	$	***	  	HP83K handler
	 Plasma Clean Oven
	  	1	  	 	***	  	Metallized trays,
Flip trays
	 Stack & Tack
	  	2	  	 	***	  	Matrix Plates,
Trays
	 Automated Soldering (Corfin)
	  	1	  	 	***	  	Trays

  
  
  
  

			
	Version:            .    Last Revised:
                                
        	 	Manufacturer Acknowledges Revision by signing below                    
		
		 	 

  

 20 

 EXHIBIT 10.2 
 CONFIDENTIAL TREATMENT REQUESTED—EDITED COPY 
  

 SCHEDULE C—SPECIFICATIONS 
  

					
	  	  	  	  	  
	MXASC-20157-01	  	Plasma Clean TSOPs	  	
	MXASC-20194-01	  	 Automated Flexframe Stakpak Assembly
	  	
	MXASC-20186-01	  	Flexframe Soldering with Corfin LRT-3000	  	
	MXASC-20147-01	  	Post Solder Clean—Electrovert	  	
	MXASC-20254-01	  	 X-Ray Inspection, Agilent 5DX (if applicable)
	  	
	MXASC-20257-01	  	 Post X-Ray Inspection ILR (if applicable)
	  	
	MXASC-20161-01	  	Solder Touchups	  	
	MXQWI-30362-01	  	Post Solder Inspection of Flexframe Stakpaks	  	
	MXQWI-30364-01	  	 Assembly Inspection of Flexframe
	  	
	MXASC-02279-01	  	 Ismeca MP-400-4 Machine # 6 (Dereeling) (if applicable)
	  	
	MXASC-20232-01	  	Agilent Tester w/NS7000 Handler	  	
	MXQWI-30347-01	  	Disposition Test Failures	  	
	MXASC-10224-01	  	 Nitrogen Dry Bake, Cure
	  	
	MXQWI-30363-01	  	Outgoing Quality Inspection	  	
	MXQWI-40084-01	  	Outgoing Quality Inspection of CSP Stakpaks	  	
	MXASC-20193-01	  	Shipping Label Preparation	  	
	MXASC-20128-01	  	PAC Vacuum Impulse Sealer Operating Procedure	  	
	MXASC-02280-01	  	Semi Auto Strapping Machine—Tray	  	
	MXASC-20217-01	  	Preparation for Tray Shipment	  	
			
	 CORFIN
	  		  	
	MXRMI-10040-01	  	CAMBIO DE MODELO A 3 NIVELES	  	
	MXRMI-10063-01	  	CAMBIO DE PROGRAMA EN LRT-3000	  	
	MXRMI-10070-01	  	MANTENIMIENTO DEL MODULO DE FLUX	  	
	MXRMI-10065-01	  	PROBLEMAS Y POSIBLES SOLUCIONES PARA CORFIN LRT-3000	  	
	MXRMI-10062-01	  	INSPECCION DE ENTRADA DE TABLERO DE CARGA	  	
	MXRMI-10019-01	  	PROCEDIMIENTO PARA DESCARGA DE PROGRAMA DE PLC EN CORFIN	  	
	MXRMI-10011-01	  	APAGADO Y ENCENDIDO DE CORFIN	  	
	MXRMI-10006-01	  	PROCEDIMIENTO DE LUBRICACION DE GUIAS MAQUINA CORFIN	  	
	MXRMI-10020-01	  	GUIA DE BUSQUEDA DE PROBLEMAS DE LA MAQUINA CORFIN	  	
	MXRMI-10061-01	  	PROCEDIMIENTO DE ALINEACION DE CORFIN	  	
	MXPMI-10037-01	  	MANTENIMIENTO PREVENTIVO ANUAL DE CORFIN	  	
	MXPMI-10033-01	  	MANTENIMIENTO PREVENTIVO DIARIO MAQUINA CORFIN	  	
	MXPMI-10036-01	  	MANTENIMIENTO PREVENTIVO SEMANAL CORFIN	  	
	MXPMI-10035-01	  	MANTENIMIENTO PREVENTIVO SEMESTRAL CORFIN	  	
	MXPMI-10032-01	  	MANTENIMIENTO QUINCENAL DE CORFIN	  	
	MXPMI-10034-01	  	MANTENIMIENTO PREVENTIVO MENSUAL CORFIN	  	
			
	PLASMA	  		  	
	MXRMI-10022-01	  	CAMBIO DE BANCO Y TANQUES DE ARGON PARA PLASMA	  	
	MXPMI-20050-01	  	MANTENIMIENTO PREVENTIVO MENSUAL DEL PLASMA ETCH	  	
	MXPMI-10047-01	  	MANTENIMIENTO PREVENTIVO SEMANAL DEL PLASMA ETCH	  	
	MXPMI-10052-01	  	MANTENIMIENTO PREVENTIVO SEMI-ANNUAL DEL PLASMA	  	
			
	STACKER	  		  	
	MXRMI-10003-01	  	CAMBIO DE HERRAMIENTAS DE LA STAK N TAK	  	
	MXRMI-10008-01	  	ALINEACION DE LA ESTACION DE CURADO DE LA STACKER	  	

  

 21 

 EXHIBIT 10.2 
 CONFIDENTIAL TREATMENT REQUESTED—EDITED COPY 
  

					
	MXPMI-10001-01	  	MANTENIMIENTO PREVENTIVO SEMANAL DE LA STACK & TACK	  	
	MXPMI-10003-01	  	PROCEDIMIENTO DE PM MENSUAL DE LA STACKER	  	
	MXPMI-10008-01	  	PROCEDIMIENTO DE PM POR CUARTO DE LA STAKER	  	
	MXPMI-20059-01	  	MANTENIMIENTO PREVENTIVO DE ID PARA STACK & TACK	  	
		
	Sub-set for Stackers	  	
	ID cleaning	  		  	
	MXPMI-20071-01	  	MANTENIMIENTO PREVENTIVO SEMANAL DEL MICRO BLAST	  	
	MXPMI-20072-01	  	MANTENIMIENTO PREVENTIVO MENSUAL DEL MICRO BLAST	  	
	MXPMI-20073-01	  	MANTENIMIENTO PREVENTIVO SEMESTRAL DEL MICRO BLAST	  	
			
	ISMECA	  		  	
	MXRMI-10014-01	  	PROCEDIMIENTO DE CAMBIO EN ISMECA	  	
	MXRMI-10031-01	  	PROCEDIMIENTO DE BUSQUEDA DE PROBLEMAS ISMECA MP400-4	  	
	MXRMI-10033-01	  	PROCEDIMIENTO DE ARREGLO DE LA GUIA DE CINTA ISMECA	  	
	MXPMI-20055-01	  	ISMECA PROCEDIMIENTO SEMIANUAL MANTENIMIENTO	  	
	MXPMI-02051-01	  	ISMECA 6 PROCEDIMIENTO SEMIANUAL DE MANTENIMIENTO	  	
	MXPMI-02052-01	  	ISMECA 6 PROCEDIMIENTO SEMANAL	  	
	MXPMI-20054-01	  	INSTRUCCIONES PARA MANTENIMIENTO MENSUAL ISMECA	  	
	MXPMI-20024-01	  	ISMECA PROCEDIMIENTO SEMANAL DE MANTENIMIENTO	  	
	MXPMI-02053-01	  	ISMECA 6 PROCEDIMIENTO MENSUAL DE MANTENIMIENTO	  	
		
	Sub-set for ISMECA	  	
	MXPMI-20057-01	  	PROCEDIMIENTO DE MANTENIMIENTO MENSUAL PARA EL PROBADOR DE SELLADO GPD	  	
	MXPMI-20058-01	  	MANTENIMIENTO SEMIANUAL DEL PROBADOR DE SELLADO GPD	  	
	MXPMI-20155-01	  	MANTENIMIENTO MENSUAL PREVENTIVO DE SELLADORA DE CINTA MT-30	  	
	MXPMI-02058-01	  	MANTENIMIENTO SEMANAL PREVENTIVO DE LA SELLADORA DE CINTA MT-30	  	
			
	TEST	  		  	
	MXRMI-10043-01	  	CAMBIO DE MODELO EN NIDO FLOTANTE DE SOCKET SYNERGETIX	  	
	MXRMI-10032-01	  	PROCEDIMIENTO DE LIMPIEZA DE EQUIPO DE PRUEBA	  	
	MXRMI-10045-01	  	SECUENCIA DE PROGRAMACION DE EPROM	  	
	MXRMI-10039-01	  	ARCHIVO DE RECUPERACION DEL SISTEMA DE PRUEBA	  	
	MXRMI-10084-01	  	PROCEDIMIENTO DE PRUEBA MANUAL DEL TABLERO LED	  	
	MXRMI-10075-01	  	PROCEDIMIENTO DE CAMBIO DE KIT DEL MANEJADOR NS7000	  	
	MXRMI-10085-01	  	PROCEDIMIENTO DE DIAGNOSTICO DE BAJO NIVEL	  	
	MXRMI-10077-01	  	VERIFICACION DE CALIBRACION-AGILENT 93K/83K	  	
	MXPMI-20051-01	  	MANTENIMIENTO MENSUAL DEL EQUIPO HP83000	  	
	MXPMI-20090-01	  	MANTENIMIENTO PREVENTIVO SEMANAL 83K	  	
	MXPMI-20099-01	  	MANTENIMIENTO PREVENTIVO SEMANAL NS7000	  	
	MXPMI-20094-01	  	PROCEDIMIENTO DE RESPALDO DE CINTA DE PRUEBA	  	
	MXPMI-20083-01	  	CALIBRACIÓN DEL HP83K-HP93K	  	
	MXPMI-20101-01	  	MANTENIMIENTO PREVENTIVO TRIMESTRAL DEL MANEJADOR NS7000	  	
	MXPMI-20080-01	  	CALIBRACION DEL SISTEMA DE PRUEBA DIGITAL HP83000	  	
	MXPMI-20091-01	  	MANTENIMIENTO PREVENTIVO SEMIANUAL DEL HP83000	  	

  

 22 

 EXHIBIT 10.2 
 CONFIDENTIAL TREATMENT REQUESTED—EDITED COPY 
  

 For all Product orders, the Manufacturer will be required to provide complete yield tracking and
quality data on each process step and final process inspection and test to Staktek upon request. Products and components built by Manufacturer for Staktek will be built per work instructions and quality standards supplied by Staktek. 
 In addition to these work instructions, Staktek will provide specific product quality testing and performance evaluation requirements for each
application. These quality specifications will be released per product and will specify test conditions and equipment. Staktek requires 100% functional testing for all products prior to shipping to HP. 
 Staktek will qualify the Manufacturer’s assembly operations for adherence to the work instructions and quality specifications prior to the build of
any Products to be shipped to customers. Staktek may contract Manufacturer to perform some of this work under guidance of Staktek’s quality department as required. Once qualification is completed and the Manufacturer is released to start
production, strict change control process must be implemented to control process variables and insure no changes to the qualified methods are used without approval. 
  
  
  
  

			
	Version:            .    Last Revised:
                                
        	 	Manufacturer Acknowledges Revision by signing below                    
		
		 	 

  

 23 

 EXHIBIT 10.2 
 CONFIDENTIAL TREATMENT REQUESTED—EDITED COPY 
  

 SCHEDULE D—CAPACITY 
 Capacity is limited to the maximum output of the Consigned Equipment. The line being transferred has a capacity of *** units per hour. 
  
  
  
  

			
	Version:            .    Last Revised:
                                
        	 	Manufacturer Acknowledges Revision by signing below                    
		
		 	 

  

 24

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00103-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00103-of-00352.parquet"}]]