Document:

<PAGE>

                                                                   Exhibit 10.31

GNU GENERAL PUBLIC LICENSE

VERSION 2, JUNE 1991
Copyright (C) 1989, 1991 Free Software Foundation, Inc.

675 Mass Ave, Cambridge, MA 02139, USA Everyone is permitted to copy and
distribute verbatim copies of this license document, but changing it is not
allowed.

PREAMBLE

The licenses for most software are designed to take away your freedom to share
and change it. By contrast, the GNU General Public License is intended to
guarantee your freedom to share and change free software -- to make sure the
software is free for all its users. This General Public License applies to most
of the Free Software Foundation's software and to any other program whose
authors commit to using it. (Some other Free Software Foundation software is
covered by the GNU Library General Public License instead.) You can apply it to
your programs, too.

When we speak of free software, we are referring to freedom, not price. Our
General Public Licenses are designed to make sure that you have the freedom to
distribute copies of free software (and charge for this service if you wish),
that you receive source code or can get it if you want it, that you can change
the software or use pieces of it in new free programs; and that you know you can
do these things.

To protect your rights, we need to make restrictions that forbid anyone to deny
you these rights or to ask you to surrender the rights. These restrictions
translate to certain responsibilities for you if you distribute copies of the
software, or if you modify it.

For example, if you distribute copies of such a program, whether gratis or for a
fee, you must give the recipients all the rights that you have. You must make
sure that they, too, receive or can get the source code. And you must show them
these terms so they know their rights.

We protect your rights with two steps: (1) copyright the software, and

(2) offer you this license which gives you legal permission to copy, distribute
and/or modify the software.

     Also, for each author's protection and ours, we want to make certain that
everyone understands that there is no warranty for this free software. If the
software is modified by someone else and passed on, we want its recipients to
know that what they have is not the original, so that any problems introduced by
others will not reflect on the original authors' reputations.

Finally, any free program is threatened constantly by software patents. We wish
to avoid the danger that redistributors of a free program will individually
obtain patent licenses, in effect making the program proprietary. To prevent
this, we have made it clear that any patent must be licensed for everyone's free
use or not licensed at all.

<PAGE>

The precise terms and conditions for copying, distribution and modification
follow.

GNU GENERAL PUBLIC LICENSE

TERMS AND CONDITIONS FOR COPYING, DISTRIBUTION AND MODIFICATION

0. This License applies to any program or other work which contains a notice
placed by the copyright holder saying it may be distributed under the terms of
this General Public License. The "Program", below, refers to any such program or
work, and a "work based on the Program" means either the Program or any
derivative work under copyright law: that is to say, a work containing the
Program or a portion of it, either verbatim or with modifications and/or
translated into another language. (Hereinafter, translation is included without
limitation in the term "modification".) Each licensee is addressed as "you".

Activities other than copying, distribution and modification are not covered by
this License; they are outside its scope. The act of running the Program is not
restricted, and the output from the Program is covered only if its contents
constitute a work based on the Program (independent of having been made by
running the Program). Whether that is true depends on what the Program does.

     1.  You may copy and distribute verbatim copies of the Program's source
         code as you receive it, in any medium, provided that you conspicuously
         and appropriately publish on each copy an appropriate copyright notice
         and disclaimer of warranty; keep intact all the notices that refer to
         this License and to the absence of any warranty; and give any other
         recipients of the Program a copy of this License along with the
         Program.

         You may charge a fee for the physical act of transferring a copy, and
         you may at your option offer warranty protection in exchange for a fee.

     2.  You may modify your copy or copies of the Program or any portion of it,
         thus forming a work based on the Program, and copy and distribute such
         modifications or work under the terms of Section 1 above, provided that
         you also meet all of these conditions:

         a)   You must cause the modified files to carry prominent notices
              stating that you changed the files and the date of any change.

         b)   You must cause any work that you distribute or publish, that in
              whole or in part contains or is derived from the Program or any
              part thereof, to be licensed as a whole at no charge to all third
              parties under the terms of this License.

         c)   If the modified program normally reads commands interactively when
              run, you must cause it, when started running for such interactive
              use in the most ordinary way, to print or display an announcement
              including an appropriate copyright notice and a notice that there
              is no warranty (or else, saying that you provide a warranty) and
              that users may redistribute the program under these conditions,
              and telling the user how to view a copy of this License.
              (Exception: if the Program itself is interactive but does not
              normally print

<PAGE>

              such an announcement, your work based on the Program is not
              required to print an announcement.)

These requirements apply to the modified work as a whole. If identifiable
sections of that work are not derived from the Program, and can be reasonably
considered independent and separate works in themselves, then this License, and
its terms, do not apply to those sections when you distribute them as separate
works. But when you distribute the same sections as part of a whole which is a
work based on the Program, the distribution of the whole must be on the terms of
this License, whose permissions for other licensees extend to the entire whole,
and thus to each and every part regardless of who wrote it.

Thus, it is not the intent of this section to claim rights or contest your
rights to work written entirely by you; rather, the intent is to exercise the
right to control the distribution of derivative or collective works based on the
Program.

In addition, mere aggregation of another work not based on the Program with the
Program (or with a work based on the Program) on a volume of a storage or
distribution medium does not bring the other work under the scope of this
License.

     3.  You may copy and distribute the Program (or a work based on it, under
         Section 2) in object code or executable form under the terms of
         Sections 1 and 2 above provided that you also do one of the following:

              a)  Accompany it with the complete corresponding machine-readable
                  source code, which must be distributed under the terms of
                  Sections 1 and 2 above on a medium customarily used for
                  software interchange; or,

              b)  Accompany it with a written offer, valid for at least three
                  years, to give any third party, for a charge no more than your
                  cost of physically performing source distribution, a complete
                  machine-readable copy of the corresponding source code, to be
                  distributed under the terms of Sections 1 and 2 above on a
                  medium customarily used for software interchange; or,

              c)  Accompany it with the information you received as to the offer
                  to distribute corresponding source code. (This alternative is
                  allowed only for noncommercial distribution and only if you
                  received the program in object code or executable form with
                  such an offer, in accord with Subsection b above.)

The source code for a work means the preferred form of the work for making
modifications to it. For an executable work, complete source code means all the
source code for all modules it contains, plus any associated interface
definition files, plus the scripts used to control compilation and installation
of the executable. However, as a special exception, the source code distributed
need not include anything that is normally distributed (in either source or
binary form) with the major components (compiler, kernel, and so on) of the
operating system on which the executable runs, unless that component itself
accompanies the executable.

If distribution of executable or object code is made by offering access to copy
from a designated place, then offering equivalent access to copy the source code
from the same

<PAGE>

place counts as distribution of the source code, even though third parties are
not compelled to copy the source along with the object code.

     4.  You may not copy, modify, sublicense, or distribute the Program except
         as expressly provided under this License. Any attempt otherwise to
         copy, modify, sublicense or distribute the Program is void, and will
         automatically terminate your rights under this License. However,
         parties who have received copies, or rights, from you under this
         License will not have their licenses terminated so long as such parties
         remain in full compliance.

     5.  You are not required to accept this License, since you have not signed
         it. However, nothing else grants you permission to modify or distribute
         the Program or its derivative works. These actions are prohibited by
         law if you do not accept this License. Therefore, by modifying or
         distributing the Program (or any work based on the Program), you
         indicate your acceptance of this License to do so, and all its terms
         and conditions for copying, distributing or modifying the Program or
         works based on it.

     6.  Each time you redistribute the Program (or any work based on the
Program), the recipient automatically receives a license from the original
licensor to copy, distribute or modify the Program subject to these terms and
conditions. You may not impose any further restrictions on the recipients'
exercise of the rights granted herein. You are not responsible for enforcing
compliance by third parties to this License.

     7.  If, as a consequence of a court judgment or allegation of patent
         infringement or for any other reason (not limited to patent issues),
         conditions are imposed on you (whether by court order, agreement or
         otherwise) that contradict the conditions of this License, they do not
         excuse you from the conditions of this License. If you cannot
         distribute so as to satisfy simultaneously your obligations under this
         License and any other pertinent obligations, then as a consequence you
         may not distribute the Program at all. For example, if a patent license
         would not permit royalty-free redistribution of the Program by all
         those who receive copies directly or indirectly through you, then the
         only way you could satisfy both it and this License would be to refrain
         entirely from distribution of the Program.

         If any portion of this section is held invalid or unenforceable under
         any particular circumstance, the balance of the section is intended to
         apply and the section as a whole is intended to apply in other
         circumstances.

         It is not the purpose of this section to induce you to infringe any
         patents or other property right claims or to contest validity of any
         such claims; this section has the sole purpose of protecting the
         integrity of the free software distribution system, which is
         implemented by public license practices. Many people have made generous
         contributions to the wide range of software distributed through that
         system in reliance on consistent application of that system; it is up
         to the author/donor to decide if he or she is willing to distribute
         software through any other system and a licensee cannot impose that
         choice.

         This section is intended to make thoroughly clear what is believed to
         be a consequence of the rest of this License.

<PAGE>

     8.  If the distribution and/or use of the Program is restricted in certain
         countries either by patents or by copyrighted interfaces, the original
         copyright holder who places the Program under this License may add an
         explicit geographical distribution limitation excluding those
         countries, so that distribution is permitted only in or among countries
         not thus excluded. In such case, this License incorporates the
         limitation as if written in the body of this License.

     9.  The Free Software Foundation may publish revised and/or new versions of
         the General Public License from time to time. Such new versions will be
         similar in spirit to the present version, but may differ in detail to
         address new problems or concerns.
         Each version is given a distinguishing version number. If the Program
         specifies a version number of this License which applies to it and "any
         later version", you have the option of following the terms and
         conditions either of that version or of any later version published by
         the Free Software Foundation. If the Program does not specify a version
         number of this License, you may choose any version ever published by
         the Free Software Foundation.

     10. If you wish to incorporate parts of the Program into other free
         programs whose distribution conditions are different, write to the
         author to ask for permission. For software which is copyrighted by the
         Free Software Foundation, write to the Free Software Foundation; we
         sometimes make exceptions for this. Our decision will be guided by the
         two goals of preserving the free status of all derivatives of our free
         software and of promoting the sharing and reuse of software generally.

NO WARRANTY

     11. BECAUSE THE PROGRAM IS LICENSED FREE OF CHARGE, THERE IS NO WARRANTY
         FOR THE PROGRAM, TO THE EXTENT PERMITTED BY APPLICABLE LAW. EXCEPT WHEN
         OTHERWISE STATED IN WRITING THE COPYRIGHT HOLDERS AND/OR OTHER PARTIES
         PROVIDE THE PROGRAM "AS IS" WITHOUT WARRANTY OF ANY KIND, EITHER
         EXPRESSED OR IMPLIED, INCLUDING, BUT NOT LIMITED TO, THE IMPLIED
         WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE. THE
         ENTIRE RISK AS TO THE QUALITY AND PERFORMANCE OF THE PROGRAM IS WITH
         YOU. SHOULD THE PROGRAM PROVE DEFECTIVE, YOU ASSUME THE COST OF ALL
         NECESSARY SERVICING, REPAIR OR CORRECTION.

     12. IN NO EVENT UNLESS REQUIRED BY APPLICABLE LAW OR AGREED TO IN WRITING
         WILL ANY COPYRIGHT HOLDER, OR ANY OTHER PARTY WHO MAY MODIFY AND/OR
         REDISTRIBUTE THE PROGRAM AS PERMITTED ABOVE, BE LIABLE TO YOU FOR
         DAMAGES, INCLUDING ANY GENERAL, SPECIAL, INCIDENTAL OR CONSEQUENTIAL
         DAMAGES ARISING OUT OF THE USE OR INABILITY TO USE THE PROGRAM
         (INCLUDING BUT NOT LIMITED TO LOSS OF DATA OR DATA BEING RENDERED
         INACCURATE OR LOSSES

<PAGE>

         SUSTAINED BY YOU OR THIRD PARTIES OR A FAILURE OF THE PROGRAM TO
         OPERATE WITH ANY OTHER PROGRAMS), EVEN IF SUCH HOLDER OR OTHER PARTY
         HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES.

END OF TERMS AND CONDITIONS

APPENDIX: HOW TO APPLY THESE TERMS TO YOUR NEW PROGRAMS

If you develop a new program, and you want it to be of the greatest possible use
to the public, the best way to achieve this is to make it free software which
everyone can redistribute and change under these terms.

To do so, attach the following notices to the program. It is safest to attach
them to the start of each source file to most effectively convey the exclusion
of warranty; and each file should have at least the "copyright" line and a
pointer to where the full notice is found.

<one line to give the program's name and a brief idea of what it does.>

     Copyright (C) 19yy  <name of author>

This program is free software; you can redistribute it and/or modify it under
the terms of the GNU General Public License as published by the Free Software
Foundation; either version 2 of the License, or (at your option) any later
version.

     This program is distributed in the hope that it will be useful, but WITHOUT
     ANY WARRANTY; without even the implied warranty of MERCHANTABILITY or
     FITNESS FOR A PARTICULAR PURPOSE. See the GNU General Public License for
     more details.

     You should have received a copy of the GNU General Public License along
     with this program; if not, write to the Free Software Foundation, Inc., 675
     Mass Ave, Cambridge, MA 02139, USA.

Also add information on how to contact you by electronic and paper mail.

If the program is interactive, make it output a short notice like this when it
starts in an interactive mode:

     Gnomovision version 69, Copyright (C) 19yy name of author

Gnomovision comes with ABSOLUTELY NO WARRANTY; for details type `show w'.This is
free software, and you are welcome to redistribute it under certain conditions;
type `show c' for details.

The hypothetical commands `show w' and `show c' should show the appropriate
parts of the General Public License. Of course, the commands you use may be
called something other than `show w' and `show c'; they could even be
mouse-clicks or menu items -- whatever suits your program.

You should also get your employer (if you work as a programmer) or your school,
if any, to sign a "copyright disclaimer" for the program, if necessary. Here is
a sample; alter the names:

<PAGE>

  Yoyodyne, Inc., hereby disclaims all copyright interest in the program
  'Gnomovision' (which makes passes at compilers) written by James Hacker.

  <signature of Ty Coon>, 1 April 1989
  Ty Coon, President of Vice

This General Public License does not permit incorporating your program into
proprietary programs. If your program is a subroutine library, you may consider
it more useful to permit linking proprietary applications with the library. If
this is what you want to do, use the GNU Library General Public License instead
of this License.<PAGE>
                                                                   EXHIBIT 10.32

               Confidential Materials omitted and filed separately
    with the Securities and Exchange Commission. Asterisks denote omissions.

                           TERMS SHEET, MARCH 12, 2003

<TABLE>
<CAPTION>
TERMS                                                 PROVISIONS
<S>                              <C>
PARTIES                          EGENERA ("Customer"), a Delaware corporation
                                 with offices located at 165 Forest St.,
                                 Marlboro, MA 01752.

                                 CELESTICA Corporation ("Supplier"), a Delaware
                                 corporation with offices located at 9
                                 Northeastern Boulevard, Salem, NH 03079.

GENERAL                          Supplier and Customer agree that this Terms
                                 Sheet, including Exhibit A (Pricing Agreement
                                 and costed boms), constitute a Letter of
                                 Agreement between the two companies that
                                 describes how they will conduct business, and
                                 that it applies to all manufacturing services
                                 performed by SUPPLIER for CUSTOMER, regardless
                                 of geographic location of SUPPLIER site.

                                 The intent of this agreement is to allow
                                 Supplier to begin procuring material to support
                                 Customer's requirements, and begin the transfer
                                 of manufacturing from Customer's current
                                 Supplier. It is a further intent of both
                                 parties to develop a pricing model where
                                 pricing is aligned by cost drivers.

NEGOTIATION                      PROCESS The parties agree that they will
                                 negotiate for the purpose of completing a
                                 formal manufacturing agreement to govern the
                                 relationship between them. The parties shall
                                 work diligently to complete such an agreement
                                 within ninety days of the signing of this LOA.
                                 This Agreement shall continue to apply until
                                 the execution of the formal manufacturing
                                 agreement.

                                 Either party can terminate the relationship for
                                 convenience at any time prior to the execution
                                 of the definitive agreement.

                                 Both parties have spent considerable effort to
                                 put in place the relationship desired, and have
                                 visited many of the terms that will be part of
                                 the eventual manufacturing agreement. It is
                                 envisioned that the spirit of the work on these
                                 issues will become part of the agreement. Any
                                 material or pricing reconciliations will take
                                 place quarterly.

PRODUCTION EFFORT AND TEST OF    For the purposes of this agreement,
THE PRODUCTS                     manufacturing services refer to prototype
                                 manufacturing, test development and
                                 implementation, new products introduction,
                                 process engineering, materials procurement and
                                 management, printed circuit assembly and test,
                                 systems assembly and test, order management and
                                 fulfillment, quality and Customer satisfaction
                                 management, and post manufacturing services,
                                 plus any other services as mutually agreed by
                                 both parties.
</TABLE>

                                      -1-

<PAGE>

<TABLE>
<CAPTION>
TERMS                                                 PROVISIONS
<S>                              <C>
BUSINESS MANAGEMENT PROCEDURES   The parties hereby agree to adopt "Business
                                 Management Procedures", in support of CUSTOMER,
                                 even if such corporate-wide decisions may be
                                 perceived by individual SUPPLIER site(s) to be
                                 sub-optimal, including:

                                 SUPPLIER will name Program Manager, senior
                                 materials resource, and senior engineering
                                 resource that will be dedicated to CUSTOMER'S
                                 business. Named resources to be full time,
                                 regular SUPPLIER employees, and not part time,
                                 and not contract employees. Changes in named
                                 individual will be communicated with a minimum
                                 of 30 days notice, and SUPPLIER commits to
                                 managing an adequate overlap period to ensure
                                 an orderly changeover, provided the reason for
                                 the changeover is not the resignation of the
                                 named individual from SUPPLIER'S employment.
                                 Notwithstanding this, CUSTOMER Agrees that
                                 those resources would be available for
                                 consulting purposes on other priorities from
                                 time to time, provided those efforts do not
                                 dilute the focused effort on CUSTOMER'S
                                 business.

                                 -  Monthly business reviews; including
                                    SUPPLIER and CUSTOMER executive level
                                    sponsor attendance quarterly.

                                 -  Annual meetings at the executive level.

                                 -  Reporting requirements, including on-going
                                    cumulative quality, delivery, and
                                    flexibility metrics tracking.

                                 -  Quarterly material cost and cost reduction
                                    plans and projections.

                                 -  Monthly reports and projections of inventory
                                    days of supply (DOS) and CUSTOMER liability.

TRANSITION                       SUPPLIER and CUSTOMER both agree to transition
                                 products and services from CUSTOMER'S Current
                                 Manufacturing Services Provider with
                                 appropriate priority, resources, and effort so
                                 as to minimize impact on CUSTOMER'S revenue
                                 stream, or on CUSTOMER'S Customer satisfaction.

                                 Current Manufacturing Services Provider means
                                 CUSTOMER'S Manufacturing Services Provider
                                 prior to the time this agreement is signed.

                                 SUPPLIER agrees that all SUPPLIER'S labor, both
                                 direct and indirect, necessary to successfully
                                 transition these products and services will be
                                 provided at SUPPLIER'S expense. Examples
                                 include labor necessary to create process
                                 packages, design floor layouts, implement
                                 production
</TABLE>

                                      -2-

<PAGE>

<TABLE>
<CAPTION>
TERMS                                                 PROVISIONS
<S>                              <C>
                                 lines, and establish a materials pipeline.
                                 Exceptions will be agreed to by both parties,
                                 in writing, and treated as NRE.

                                 SUPPLIER and CUSTOMER agree that New Products
                                 Introductions agreements regarding Generic and
                                 Unique Equipment will apply to all other
                                 aspects of the Transition from CUSTOMER'S
                                 Current Manufacturing Services Provider.

NEW PRODUCT INTRODUCTIONS        SUPPLIER and CUSTOMER both agree to introduce
                                 new CUSTOMER products with appropriate
                                 priority, resources, and effort so as to
                                 minimize impact on CUSTOMER'S new product
                                 introduction program objectives. It is further
                                 recognized that important CUSTOMER new product
                                 introductions will be underway in parallel with
                                 the Transition from CUSTOMER'S Current
                                 Manufacturing Services Provider, and that the
                                 level of activity may require additional
                                 resources beyond what is normally allocated for
                                 NPI activities alone.

                                 CUSTOMER agrees that all SUPPLIER'S labor, both
                                 Direct (DL) and Indirect (IL), necessary to
                                 successfully introduce new CUSTOMER products
                                 and services will be provided at CUSTOMER'S
                                 expense. This labor includes that necessary to
                                 create process packages, develop and debug test
                                 programs, design floor layouts, implement
                                 production lines, procure prototype materials,
                                 build prototypes, implement Engineering Change
                                 Orders (ECOs), and whatever else is necessary.
                                 The charges for these Non-Recurring Engineering
                                 (NRE) activities will be calculated as total IL
                                 hours times agreed upon IL rate/hour, plus
                                 total DL hours times agreed upon DL rate/hour,
                                 unless both parties agree in advance on a total
                                 charge for the complete program.

                                 SUPPLIER agrees that each new product design,
                                 component selection, and Supplier selection
                                 will be assessed for producibility and for
                                 cost, and that recommendations will be made for
                                 producibility improvement, and for cost
                                 reductions. These recommendations will be made
                                 as early in the program as possible, so as
                                 maximize the opportunity to implement them in
                                 the CUSTOMER'S program. CUSTOMER agrees that
                                 all such Design For Manufacturability (DIM)
                                 efforts will be provided at CUSTOMER expense,
                                 at agreed upon NRE hourly rates, provided such
                                 feedback is provided in an organized manner and
                                 on a timely basis.

                                 SUPPLIER agrees that all Equipment that is
                                 Generic to the Manufacturing Services being
                                 provided to CUSTOMER will be provided at
                                 SUPPLIER expense. Examples of generic equipment
                                 are: screen printer, automatic placement
                                 equipment, flying probe, 5DX X-ray, ICT
                                 equipment, roller lines, packaging equipment,
                                 as well as
</TABLE>

                                      -3-

<PAGE>

<TABLE>
<CAPTION>
TERMS                                                 PROVISIONS
<S>                              <C>
                                 business systems to support SUPPLIER'S standard
                                 Manufacturing Services offerings.

                                 CUSTOMER agrees that all Equipment that is
                                 Uniquely required for the introduction,
                                 production, and delivery of CUSTOMER products
                                 will be provided at CUSTOMER expense, and will
                                 be owned by CUSTOMER. Examples of Unique
                                 equipment are: stencils, solder fixtures, ICT
                                 fixtures, product functional test equipment,
                                 Master Blaster, and any capitalized CUSTOMER
                                 product that is used as part of any test
                                 station.

QUALITY                          SUPPLIER agrees that product price includes
                                 benefit from ongoing quality management
                                 process, which includes: process measurement
                                 and controls, training, appropriate inspections
                                 and audits, closed-loop corrective action
                                 process, management reviews, and all other
                                 activities necessary to understand and manage
                                 ongoing product quality.

                                 SUPPLIER certifies that all sites involved in
                                 the production and delivery of CUSTOMER'S
                                 product are certified to ISO9000/2000.

                                 SUPPLIER agrees that any incremental actions
                                 taken by CUSTOMER, that are required to ensure
                                 acceptable outgoing quality will be done at the
                                 expense of SUPPLIER, and will be billed at
                                 agreed upon NRE rates, unless those actions are
                                 required due to CUSTOMER'S design, component
                                 selection, or Supplier selection.

                                 CUSTOMER agrees that any incremental actions
                                 necessary to maintain minimum acceptable levels
                                 of outgoing quality will be taken at CUSTOMER'S
                                 expense, and will be billed at agreed upon NRE
                                 rates, provided those actions are required due
                                 to CUSTOMER'S design, component selection, or
                                 Supplier selection.

PRICES FOR PRODUCTS              The agreed price for each Product is set forth
                                 in Exhibit A to this agreement.

                                 SUPPLIER and CUSTOMER agree to work together to
                                 achieve a [**]% price reduction per year on all
                                 products combined. Prices will be reviewed
                                 quarterly, and reductions will be measured
                                 quarterly from same quarter prior year.

                                 SUPPLIER and CUSTOMER agree that benefits from
                                 cost reduction of component materials that are
                                 achieved primarily through the efforts of
                                 SUPPLIER will be [**]% by SUPPLIER for a period
                                 of three months, and [**] between SUPPLIER and
                                 CUSTOMER for an additional period of three
                                 months, [**]% to CUSTOMER thereafter, provided
                                 CUSTOMER is realizing a cumulative [**]% annual
</TABLE>

                                      -4-

<PAGE>

<TABLE>
<CAPTION>
TERMS                                                 PROVISIONS
<S>                              <C>
                                 material cost reduction across all products. In
                                 the event CUSTOMER is not realizing the [**]%
                                 annual material cost reduction across all
                                 products, benefits from cost reduction of
                                 component materials will be divided between
                                 SUPPLIER and CUSTOMER in a way that will
                                 maximize its contribution to achieving that
                                 goal. This agreement shall be called the
                                 Purchase Price Variance (PPV) sharing
                                 agreement.

                                 SUPPLIER agrees that all material cost
                                 reduction benefits will be disclosed to
                                 CUSTOMER at or before the time the benefit will
                                 impact SUPPLIER.

PLANNING ASSUMPTIONS,            CUSTOMER agrees that all demand will be placed
PURCHASING AND COMMODITY         on SUPPLIER in the form of Purchase Orders.
MANAGEMENT SERVICES              CUSTOMER will endeavor to provide purchase
                                 order coverage for a minimum of 90 days to a
                                 maximum of 180 days of requirements.

                                 SUPPLIER and CUSTOMER agree that it is their
                                 objective to reach agreement that minimizes the
                                 material content that is controlled and/or
                                 sourced by CUSTOMER. Such agreement will depend
                                 upon terms that support the business objectives
                                 of both parties.

                                 SUPPLIER agrees to procure all component
                                 materials to fulfill CUSTOMER'S purchase
                                 orders, with the exception of components that
                                 are managed and sourced directly by CUSTOMER,
                                 which are subsequently consigned to SUPPLIER by
                                 CUSTOMER. Cost for execution of this
                                 responsibility is included in agreed upon price
                                 for each product.

                                 All CUSTOMER owned materials that are consigned
                                 to SUPPLIER to be kept in a separate, secured
                                 inventory location. Records will be maintained
                                 for these materials, and CUSTOMER shall have
                                 access to the records and materials for audit
                                 purposes.

                                 The price of products listed on the Purchase
                                 Order shall be firm, and not subject to change
                                 based on varying costs or expenses of SUPPLIER.
                                 SUPPLIER shall be responsible for any
                                 incremental costs arising from changes in
                                 component prices from the date of the original
                                 purchase order, even if such changes occur
                                 prior to the date on which, according to the
                                 commodity leadtime approved by CUSTOMER (as
                                 specified below), SUPPLIER is first anticipated
                                 to acquire such materials; similarly, SUPPLIER
                                 shall receive the benefit of any incremental
                                 price reduction during that (or subsequent
                                 periods), according to the PPV Sharing
                                 Agreement (above); except as specified below
                                 where CUSTOMER does not place the order within
                                 the specified leadtime, or where SUPPLIER and
                                 CUSTOMER agree to
</TABLE>

                                      -5-

<PAGE>

<TABLE>
<CAPTION>
TERMS                                                 PROVISIONS
<S>                              <C>
                                 the contrary in specific instances. Exceptions
                                 would be made for components that have gone on
                                 global allocation by commodity, provided
                                 SUPPLIER can show evidence that diligence has
                                 been applied to mitigate the effects of the
                                 allocation situation.

                                 SUPPLIER also agrees to provide to CUSTOMER
                                 prior to or in connection with the Purchase
                                 Orders a listing of all materials that are
                                 deemed to be Non-Cancelable, Non-Returnable
                                 (NCNR). Notwithstanding such classification,
                                 however, the provisions below regarding
                                 rescheduling shall continue apply to such
                                 materials.

                                 SUPPLIER agrees to accept changes in purchase
                                 order quantities for the third period of every
                                 calendar quarter, provided such changes are
                                 communicated before 59 days prior to the start
                                 of that period. CUSTOMER agrees that those
                                 changes will be limited to the range of
                                 [**]%/[**]% of total demand for each product
                                 for that period, and/or reschedule of demand
                                 for each product for that period into the next
                                 quarter. Both parties agree, in the event of a
                                 reduction and/or reschedule of third period
                                 demand, to endeavor to level load the remaining
                                 demand for that quarter across the full three
                                 periods. SUPPLIER agrees that CUSTOMER will
                                 incur no incremental charge as a result of
                                 exercising this flexibility agreement.

                                 In the event CUSTOMER finds it necessary to
                                 cancel or reduce the quantities in certain
                                 purchase orders (in amounts beyond the
                                 flexibility set forth above to cancel or
                                 restructure orders), CUSTOMER will be
                                 responsible for SUPPLIER's out of pocket cost
                                 for materials, but SUPPLIER shall use its best
                                 efforts, including the full effect of
                                 SUPPLIER's global material's leverage, to
                                 mitigate such cost. CUSTOMER shall have no
                                 liability for labor costs or overhead which are
                                 avoided by the failure to manufacture the
                                 materials specified in the cancelled or reduced
                                 purchase orders.

                                 CUSTOMER agrees that expected requirements
                                 beyond the coverage of purchase orders will be
                                 communicated in the form of non-binding
                                 forecasts, and that through a combination of
                                 purchase orders and forecast, will endeavor to
                                 provide a full twelve months visibility to
                                 expected demand.

                                 CUSTOMER agrees that any requirements for
                                 materials with leadtime greater than the period
                                 for which purchase order coverage is provided
                                 will be supported on an exception basis with a
                                 separate purchase order. SUPPLIER agrees to
                                 provide CUSTOMER with timely notification of
                                 such situations.
</TABLE>

                                      -6-

<PAGE>

<TABLE>
<CAPTION>
TERMS                                                 PROVISIONS
<S>                              <C>
                                 SUPPLIER agrees to provide CUSTOMER with a
                                 Standard Leadtime Chart, with which SUPPLIER
                                 commit to leadtime by commodity, as well as
                                 SUPPLIER leadtime commit by component for any
                                 component with a leadtime that exceeds its
                                 Standard commodity leadtime. It is the
                                 responsibility of SUPPLIER to keep the Standard
                                 Leadtime Chart current with revisions as
                                 required. This information will be used for
                                 planning purposes and as the basis for
                                 determination of premium responsibilities.
                                 Customer acknowledges that lead times of
                                 component varies, and supplier will use
                                 reasonable commercial efforts to keep updated
                                 though it can happen that lead times change
                                 with no notice to supplier.

                                 CUSTOMER agrees that incremental costs arising
                                 from premiums required to procure certain
                                 components within leadtime as defined by
                                 Standard Leadtime Chart will be the
                                 responsibility of CUSTOMER, provided that
                                 timing of CUSTOMER'S purchase order did not
                                 allow SUPPLIER enough time to procure those
                                 parts at those leadtimes, and provided SUPPLIER
                                 informs CUSTOMER on a timely basis of the need
                                 for premium, the cause, and he estimated cost,
                                 and secures CUSTOMER approval prior to
                                 incurring that cost. SUPPLIER agrees that
                                 premiums in all other cases are at SUPPLIER
                                 expense.

                                 SUPPLIER agrees to develop and propose to
                                 CUSTOMER a sourcing strategy that would allow
                                 SUPPLIER to provide [**]% upside for materials
                                 availability within six weeks notice, such
                                 notice to be communicated in the form of change
                                 orders to existing purchase orders. Both
                                 parties agree to complete such a plan before
                                 the formal manufacturing agreement is signed.

                                 CUSTOMER will consider providing SUPPLIER with
                                 a separate purchase order to cover materials
                                 for which a minimum order quantity would result
                                 in cost savings or avoidance, compared to
                                 limiting the procurement to quantities
                                 supported by CUSTOMER'S existing purchase
                                 orders. SUPPLIER agrees to provide information
                                 on a timely basis for consideration and action
                                 prior to leadtime for those components.
                                 SUPPLIER further agrees to minimize these
                                 situations by taking their total demand across
                                 their Customer portfolio into account to
                                 endeavor to realize the minimum order quantity.

                                 CUSTOMER agrees to be responsible for all
                                 materials procured by SUPPLIER in support of
                                 CUSTOMER'S purchase orders, provided such
                                 materials were not ordered by SUPPLIER earlier
                                 than leadtime as defined in Standard Leadtime
                                 Charge and provided SUPPLIER can provide
                                 evidence of using best efforts, including the
                                 full effect of SUPPLIER'S global materials
                                 leverage to mitigate. CUSTOMER
</TABLE>

                                      -7-

<PAGE>

<TABLE>
<CAPTION>
TERMS                                                 PROVISIONS
<S>                              <C>
                                 agrees to be responsible for finished goods and
                                 work in process, provided those assemblies are
                                 produced in support of CUSTOMER purchase
                                 orders.

PRICES FOR COMPONENTS            To Be Included in Appendix A

BUY DOWN OF INVENTORY            CUSTOMER may "buy down" SUPPLIER'S inventory on
                                 any component parts for the difference between
                                 SUPPLIER'S actual cost and the future
                                 negotiated Component Cost.

ORDER FULFILLMENT                SUPPLIER agrees to build and test certain of
                                 CUSTOMER'S products to a semi-finished goods
                                 state, and perform final configuration and test
                                 of those products when CUSTOMER transmits their
                                 Sales Order for those products to SUPPLIER.

                                 CUSTOMER shall initiate product shipment by
                                 transmitting CUSTOMER Sales Orders to SUPPLIER.
                                 Sales Orders to include final quantities,
                                 configuration, Customer name, ship to address,
                                 and required shipment date. Sales Orders to be
                                 transmitted through agreed EDI processes.

                                 SUPPLIER shall ship product on required ship
                                 date specified on CUSTOMER Sales Order,
                                 provided CUSTOMER Purchase Order supports the
                                 required quantities and configurations, and at
                                 least one week notice is given to SUPPLIER to
                                 allow for final configuration and test of
                                 product.

                                 CUSTOMER purchases product at time of shipment
                                 from SUPPLIER.

                                 SUPPLIER agrees to extend to CUSTOMER a line of
                                 credit for the purposes of financing inventory,
                                 including component parts, both on hand and, in
                                 the case of NCNR materials, on order, and work
                                 in process, and finished goods, as well as
                                 financing accounts receivable from CUSTOMER.
                                 Amount of Line of Credit to be determined based
                                 on CUSTOMER cash position, burn rate, revenue
                                 stream, payments history, and CUSTOMER business
                                 plan going forward, and other criteria, such
                                 criteria to be disclosed by SUPPLIER to
                                 CUSTOMER prior to its being incorporated into
                                 any calculation. SUPPLIER agrees to communicate
                                 details of method of determination of actual
                                 credit limit, based on these inputs, upon
                                 signing this agreement, these details to
                                 include frequency and timing of credit
                                 analysis. SUPPLIER agrees to provide CUSTOMER
                                 with a minimum of thirty (30) days notice of
                                 any proposed reduction in the line of credit.
                                 Such notice to be communicated in an executive
                                 discussion between both parties. Exceptions to
                                 the 30 day notice would be dramatic and
                                 unfavorable
</TABLE>

                                      -8-

<PAGE>

<TABLE>
<CAPTION>
TERMS                                                 PROVISIONS
<S>                              <C>
                                 changes to customer's financial picture.

                                 Delivery terms are fob Supplier's dock.

                                 Unless the Customer provides appropriate
                                 exemption certificates, the Customer will be
                                 solely responsible for and will pay all taxes.

                                 Warranty is one year on workmanship and pass
                                 through on material warranty as long as total
                                 warranty is at least one year.

                                 Supplier can accept or reject purchase order(s)
                                 but must notify the Customer in writing within
                                 5 days.

                                 In cases where best effort is stated, this will
                                 mean reasonable commercial efforts.

INVENTORY CARRYING COSTS         To be included in attachment A

PAYMENT                          SUPPLIER agrees to invoice CUSTOMER against
                                 existing Purchase Order upon shipment of the
                                 Product payment due 30 days after receipt of
                                 invoice by CUSTOMER.

WARRANTIES -- GENERAL            SUPPLIER provides warranties of good title; no
                                 pending claims; possession of necessary right
                                 and powers; services performed in a competent,
                                 professional manner and in accordance with the
                                 applicable Specifications; each Product and all
                                 Components shall be new and unused at the time
                                 of initial delivery; each Product shall be free
                                 from defects in workmanship, shall be free from
                                 defects in components for which SUPPLIER has
                                 turnkey component management responsibility,
                                 under normal use and operation, and conforms to
                                 the applicable Specification.

WARRANTIES -- EPIDEMIC FAILURE   Special Warranty and procedures for Epidemic
                                 Failure, to be added as a part of the formal
                                 manufacturing agreement.

REPAIR                           SUPPLIER agrees to repair all hardware products
                                 that are returned from the field, subject only
                                 to limitations based on technological
                                 obsolescence or as otherwise agreed.

                                 CUSTOMER agrees that all materials returned
                                 from the field for repair will remain the
                                 property of CUSTOMER and be consigned to
                                 SUPPLIER for repair.

                                 CUSTOMER agrees to order from SUPPLIER spare
                                 parts to support anticipated repair
                                 requirements. CUSTOMER agrees that such parts
</TABLE>

                                       -9-

<PAGE>

<TABLE>
<CAPTION>
TERMS                                                 PROVISIONS
<S>                              <C>
                                 will be owned by CUSTOMER and consigned to
                                 SUPPLIER for the purposes of repair.

                                 SUPPLIER agrees to repair and retest all
                                 returned product in a reasonable time period.
                                 Such time period to be determined and specified
                                 in the formal manufacturing agreement.

COST OF REPAIR                   SUPPLIER agrees to incur the expense of all
                                 repairs required due to workmanship. With
                                 respect to components for which SUPPLIER has
                                 component management responsibility, SUPPLIER
                                 shall pass through to CUSTOMER the benefit of
                                 all third party warranties on such components;
                                 provided SUPPLIER shall ensure that such
                                 warranties shall extend at least one year from
                                 the date of sale by CUSTOMER of the finished
                                 product containing such component; any
                                 shortfall shall be covered by SUPPLIER

                                 CUSTOMER agrees to incur the expense of all
                                 repairs required due to (i) CUSTOMER design
                                 issue, (ii) component (other than components
                                 for which SUPPLIER has component management
                                 responsibility)failure, (iii) repairs based on
                                 out-of-warranty or Customer satisfaction
                                 (non-defect) reasons (iv) returned product not
                                 assembled by Celestica.

TREATMENT OF USED PARTS          SUPPLIER understands the need to segregate new
                                 and returned/remanufactured/used parts streams,
                                 and will ensure that new products shall be
                                 composed only of new parts, while repaired and
                                 spare parts make be composed of a combination
                                 of returned/remanufactured/used parts.

INTELLECTUAL PROPERTY;           CUSTOMER and supplier will agree on terms of
CONFIDENTIALITY;                 intellectual property in the manufacturing
INDEMNIFICATION;                 agreement.
LIMITATION OF LIABILITY
                                 Standard terms relating to protection of'
                                 confidential information

                                 Standard cross-indemnification provisions

                                 Limitation of liability to direct damages (no
                                 consequential damages), with no limitation for
                                 indemnification for intellectual property
                                 rights infringement by third parties

GENERAL PROVISIONS               Standard provisions, including Access to
                                 Facilities, Force Majeure, Exports law
                                 compliance, Disaster Recovery Plan, Country of
                                 Origin, No Assignment by Supplier,
                                 Massachusetts Law and Venue.

                                 11.1 Customer agrees to indemnify, defend and
                                 hold harmless Celestica from and against all
                                 third party claims, costs, damages, fines,
</TABLE>

                                      -10-

<PAGE>

<TABLE>
<CAPTION>
TERMS                                                 PROVISIONS
<S>                              <C>
                                 losses and expenses (including reasonable
                                 attorney's fees) to the extent that such
                                 claims, costs, damages, fines, losses and
                                 expenses result from: (i) death, personal
                                 injury or property damage arising from
                                 Customer's negligent acts or omissions or
                                 willful misconduct; or, (ii) an intellectual
                                 property infringement claim arising from any
                                 specifications, software, information supplied
                                 or any instructions given to Celestica by or on
                                 behalf of the Customer provided that Celestica
                                 gives Customer prompt notice in writing of the
                                 claim, provides reasonable assistance and
                                 cooperation to Customer in defense of the claim
                                 and permits Customer to control the defense of
                                 the claim. Celestica may employ counsel, at its
                                 own expense, to assist in the defense of the
                                 claim. Celestica shall have no authority to
                                 settle any claim on behalf of the Customer.

                                 11.2 Celestica agrees to indemnify, defend and
                                 hold harmless Customer from and against all
                                 third party claims, costs, damages, fines,
                                 losses and expenses (including reasonable
                                 attorney's fees) to the extent that such
                                 claims, costs, damages, fines, losses and
                                 expenses result from: (i) death, personal
                                 injury or property damage arising from
                                 Celestica's negligent acts or omissions or
                                 wilful misconduct; or, (ii) an intellectual
                                 property infringement claim arising from
                                 Celestica proprietary manufacturing processes
                                 used for the Customer provided that Customer
                                 gives Celestica prompt notice in writing of the
                                 claim, provides reasonable assistance and
                                 co-operation to Celestica in defense of the
                                 claim and permits Celestica to control the
                                 defense of the claim. Customer may employ
                                 counsel, at its own expense, to assist in the
                                 defense of the claim. Customer shall have no
                                 authority to settle any claim on behalf of
                                 Celestica.

                                 EXCLUSIONS AND LIMITATION OF LIABILITY

                                 12.1 To the maximum extent permitted by law,
                                 under no circumstances will either party have
                                 any liability whether in contract or for
                                 negligence or otherwise, and except for any
                                 obligation to pay amounts which are properly
                                 due and payable hereunder, and whether related
                                 to any single event or series of connected
                                 events, for any of the following:

                                      (a) any liability in excess of (i) in the
                                      case of damage to or loss of tangible
                                      property, the value of such property; and
                                      (ii) in any event, regarding any other
                                      liability, the total prices paid for the
                                      affected product(s) giving rise to such
                                      liability or $500,000 (whichever is the
                                      lesser);
</TABLE>

                                      -11-

<PAGE>

<TABLE>
<CAPTION>
TERMS                                                 PROVISIONS
<S>                              <C>
                                      (b) any liability for any incidental
                                      indirect or consequential damages or loss
                                      of business, loss of records or data, loss
                                      of use, loss of profits, revenue or
                                      anticipated savings or other economic loss
                                      whether or not a party was informed or was
                                      aware of the possibility of such loss; or

                                      (c) any third party claims, other than
                                      claims arising under Section 11, against
                                      the other party for any loss, damage,
                                      costs or expenses.

                                 12.2 Neither the Customer nor Celestica may
                                 bring an action more than two (2) years after
                                 the cause of action arose. The prevailing party
                                 in a legal action will be reimbursed by the
                                 other party for its expenses, including
                                 reasonable legal fees

                                 By signing below, both parties agree to the
                                 terms of this Agreement, and represent that the
                                 individuals signing below have authority to
                                 bind their respective corporations.
</TABLE>

Agreed to:

CELESTICA CORPORATION                       EGENERA

By: /s/Nathan Kawaye                        By: /s/James H. Kelly
   ---------------------------------           ---------------------------------
(Signature)                                 (Signature)

Name: Nathan Kawaye                         Name: James H. Kelly

Title: Sr. VP                               Title: VP. Mfg. Egenera

Date: March 12, 2003                        Date: March 24, 2003

                                      -12-

<PAGE>

TERM SHEET ATTACHMENT A
TERM SHEET EXHIBIT A

<TABLE>
<CAPTION>
                                       Q3              Q3             Q3              Q3             Q3             Q3        Q3
                                      SMTC
                                   Transition p    CLS Build p
                                      blade          blade          c blade        s blade         spine          frame
          PART NUMBER               980-000023     980-000023     950-000013      950-000014     950-000017     980-000021  MAYNARD
<S>                         <C>   <C>           <C>             <C>           <C>             <C>             <C>           <C>
VOLUMES QUOTED                            100                                                                               being
                                                                                                                            jointly
                                                                                                                            worked
Material                          $      [**]   $        [**]           [**]  $       [**]    $         [**]  $       [**]
  any components > $[**]                                                [**]          [**]    $         [**]
any components > $[**]
Total Material                    $      [**]   $        [**]           [**]          [**]    $         [**]          [**]

Material mark up (Q3)       [**]% $      [**]   $        [**]           [**]          [**]    $         [**]          [**]
  Mark up (Q3) comp >300    [**]% $      [**]   $        [**]           [**]          [**]
MVA                               $      [**]   $        [**]           [**]          [**]                            [**]

Mfg Subtotal                      $      [**]   $        [**]   [**]          [**]            $         [**]  [**]

SGA                               $      [**]   $        [**]   [**]          [**]            $         [**]  [**]

Profit                            $      [**]   $        [**]   [**]          [**]            $         [**]  [**]

Total Price                       $      [**]   $        [**]   [**]          [**]            $         [**]  [**]
</TABLE>

Note. In Q2'03, pricing will be adjusted if required to account for difference
in metal pricing between SMTC and Celestica metal pricing.

NRE

<TABLE>
<S>                         <C>   <C>
880-11 pca                  [**]  1 per in 980-23
880-17 pca                  [**]  1 per in 950-13
880-3 pca                   [**]  1 per in 950-14
880-21 pca                  [**]  2 per in 950-13
980-21 system               [**]  Transition NRE
DL Hourly Rate for Q2 beyond NRE noted above [**]    IL Rate Hourly for Q2 beyond NRE noted above [**]

10 DAY TURNS, QTY 10,25,50        Material estimated at [**]% higher
</TABLE>

<PAGE>

<TABLE>
<S>                               <C>
                                  MVA [**]% higher

5 DAY TURN                        Premium of [**]% to 10 day turn

COST OF MONEY                     [**]% Cost of Money is the monthly charge that
                                  can be assessed to Egenera by Celestica for
                                  inventory that does not achieve the turns
                                  assumption built into the pricing model. The
                                  details and mechanisms for charging cost of money
                                  will be detailed in the formal Manufacturing
                                  Services agreement.

NOTE ON COSTED BOMS               The cost of some parts were provided by Egenera.
                                  Reconciliation to actual costs will be conducted
                                  and resolved during the quarter. Differences will
                                  be netted and resolved at quarter end.
</TABLE>

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