Document:

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                                                                    Exhibit 10.1

                        PARAMETRIC TECHNOLOGY CORPORATION

                        2000 EMPLOYEE STOCK PURCHASE PLAN

1.   PURPOSE.

     This 2000 Employee Stock Purchase Plan (the "Plan") is adopted by
Parametric Technology Corporation (the "Company") to provide Eligible Employees
who wish to become shareholders of the Company an opportunity to purchase shares
of Common Stock, par value $.01 per share, of the Company ("Common Stock"). The
Plan is intended to qualify as an "employee stock purchase plan" under Section
423 of the Internal Revenue Code of 1986, as amended (the "Code"), and the
provisions of the Plan shall be construed so as to extend and limit
participation in a manner consistent with the requirements of Section 423;
provided that, if and to the extent authorized by the Board, the fact that the
Plan does not comply in all respects with the requirements of Section 423 shall
not affect the operation of the Plan or the rights of Employees hereunder.

2.   CERTAIN DEFINITIONS.

     As used in this Plan:

     (a)  "Board" means the Board of Directors of the Company, and "Committee"
means the Compensation Committee of the Board or such other committee as the
Board may appoint from time to time to administer the Plan.

     (b)  "Coordinator" means the officer of the Company or other person charged
with day-to-day supervision of the Plan as appointed from time to time by the
Board or the Committee.

     (c)  "Designated Beneficiary" means a person designated by an Employee in
the manner prescribed by the Committee or the Coordinator to receive certain
benefits provided in this Plan in the event of the death of the Employee.

     (d)  "Eligible Employee" with respect to any Offering hereunder means any
Employee who, as of the Offering Commencement Date for such Offering:

          (i)    has been a Full-time Employee of the Company or any of its
                 Subsidiaries for not less than 80 days; and

          (ii)   would not, immediately after any right to acquire Shares in
                 such Offering is granted, own stock or rights to purchase
                 stock possessing five percent (5%) or more of the total
                 combined voting power or value of all classes of stock of
                 the Company or of any subsidiary corporation, determined in
                 accordance with Section 423.

     (e)  "Employee" means an employee (as that term is used in Section 423) of
the Company or any of its Subsidiaries.

     (f)  "Fair Market Value" of a Share shall mean the fair market value of a
share of Common Stock, as determined by the Committee.

     (g)  "Full-time Employee" is an Employee whose customary employment is for
more than (i) 20 hours per week and (ii) five months, in the calendar year
during which the respective Offering Commencement Date occurs.

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     (h)  "Offering" is an offering of Shares pursuant to Section 5 of the Plan.

     (i)  "Offering Commencement Date" means the date on which an Offering under
the Plan commences, and "Offering Termination Date" means the date on which an
Offering under the Plan terminates.

     (j)  "Purchase Date" means each date on which the rights granted under the
Plan may be exercised for the purchase of Shares.

     (k)  "Section 423" and subdivisions thereof refer to Section 423 of the
Code or any successor provision(s).

     (l)  "Shares" means the shares of Common Stock issuable under the Plan.

     (m)  "Subsidiary" means a subsidiary corporation, as defined in Section 424
of the Code, of the Company the Employees of which are designated by the Board
of Directors or the Committee as eligible to participate in the Plan.

3.   ADMINISTRATION OF THE PLAN.

     The Committee shall administer, interpret and apply all provisions of the
Plan as it deems necessary or appropriate, subject, however, at all times to the
final jurisdiction of the Board of Directors. The Board may in any instance
perform any of the functions of the Committee hereunder. The Committee may
delegate administrative responsibilities to the Coordinator, who shall, for
matters involving the Plan, be an ex officio member of the Committee.
Determinations made by the Committee and approved by the Board of Directors with
respect to any provision of the Plan or matter arising in connection therewith
shall be final, conclusive and binding upon the Company and upon all
participants, their heirs or legal representatives.

4.   SHARES SUBJECT TO THE PLAN.

         The maximum aggregate number of Shares that may be purchased upon
exercise of rights granted under the Plan shall be 10,000,000 plus the number of
shares, if any, previously approved by the Company's stockholders for issuance
under the Company's 1991 Employee Stock Purchase Plan that remain unissued as of
the termination of the final offering under that plan. Appropriate adjustments
in such amount, the number of Shares covered by outstanding rights granted
hereunder, the securities that may be purchased hereunder, the Exercise Price,
and the maximum number of Shares or other securities that an employee may
purchase (pursuant to Section 8 below) shall be made to give effect to any
mergers, consolidations, reorganizations, recapitalizations, stock splits, stock
dividends or other relevant changes in the capitalization of the Company
occurring after the effective date of the Plan; provided that any fractional
Share otherwise issuable hereunder as a result of such an adjustment shall be
adjusted downward to the nearest full Share. Any agreement of merger or
consolidation involving the Company will include appropriate provisions for
protection of the then existing rights of participating employees under the
Plan. Either authorized and unissued Shares or treasury Shares may be purchased
under the Plan. If for any reason any right under the Plan terminates in whole
or in part, Shares subject to such terminated right may again be subjected to a
right under the Plan.

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5.   OFFERINGS; PARTICIPATION.

     (a)  From time to time, the Company, by action of the Committee, will grant
rights to purchase Shares to Eligible Employees pursuant to one or more
Offerings, each having an Offering Commencement Date, an Offering Termination
Date, and one or more Purchase Dates as designated by the Committee. No Offering
may last longer than twenty-seven (27) months or such longer period as may then
be consistent with Section 423. The Committee may limit the number of Shares
issuable in any Offering, either before or during such Offering.

     (b)  Participation in each Offering shall be limited to Eligible Employees
who elect to participate in such Offering in the manner, and within the time
limitations, established by the Committee. No person otherwise eligible to
participate in any Offering under the Plan shall be entitled to participate if
he or she has elected not to participate. Any such election not to participate
may be revoked only with the consent of the Committee.

     (c)  An Employee who has elected to participate in an Offering may make
such changes in the level of payroll deductions as the Committee may permit from
time to time, or may withdraw from such Offering, by giving written notice to
the Company before any Purchase Date. No Employee who has withdrawn from
participating in an Offering may resume participation in the same Offering, but
he or she may participate in any subsequent Offering if otherwise eligible.

     (d)  Upon termination of a participating Employee's employment for any
reason, including retirement but excluding death or disability (as defined in
Section 22(e)(3) of the Code) while in the employ of the Company or a
Subsidiary, such Employee will be deemed to have withdrawn from participation in
all pending Offerings.

     (e)  Upon termination of a participating Employee's employment because of
disability or death, the Employee or his or her Designated Beneficiary, if any,
as the case may be, shall have the right to elect, with respect to each Offering
in which the Employee was then participating, by written notice given to the
Coordinator within 30 days after the date of termination of employment (but not
later than the next applicable Purchase Date for each Offering), either (i) to
withdraw from such Offering or (ii) to exercise the Employee's right to purchase
Shares on the next Purchase Date of such Offering to the extent of the
accumulated payroll deductions or other contributions in the Employee's account
at the date of termination of employment. If no such election with respect to
any Offering is made within such period, the Employee shall be deemed to have
withdrawn from such Offering on the date of termination of employment. The
foregoing election is not available to any person, such as a legal
representative, as such, other than the Employee or a Designated Beneficiary.

6.   EXERCISE PRICE.

     The rights granted under the Plan shall be exercised and Shares shall be
purchased at a price per Share (the "Exercise Price") determined by the
Committee from time to time; provided that the Exercise Price shall not be less
than eighty-five percent (85%) of the Fair Market Value of a Share on (a) the
respective Offering Commencement Date or (b) the respective Purchase Date,
whichever is lower.

7.   EXERCISE OF RIGHTS; METHOD OF PAYMENT.

     (a)  Participating Employees may pay for Shares purchased upon exercise of
rights granted hereunder through regular payroll deductions, by lump sum cash
payment, by delivery of shares of Common Stock valued at Fair Market Value on
the date of delivery, or a combination thereof, as determined by the Committee
from time to time. No interest shall be paid upon payroll deductions or

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other amounts held hereunder (whether or not used to purchase Shares) unless
specifically provided for by the Committee. All payroll deductions and other
amounts received or held by the Company under this Plan may be used by the
Company for any corporate purpose, and the Company shall not be obligated to
segregate such amounts.

     (b)  Subject to any applicable limitation on purchases under the Plan, and
unless the Employee has previously withdrawn from the respective Offering,
rights granted to a participating Employee under the Plan will be exercised
automatically on the Purchase Date of the respective Offering coinciding with
the Offering Termination Date, and the Committee may provide that such rights
may at the election of the Employee be exercised on one or more other Purchase
Dates designated by the Committee within the period of the Offering, for the
purchase of the number of whole Shares that may be purchased at the applicable
Exercise Price with the accumulated payroll deductions or other amounts
contributed by such Employee as of the respective Purchase Date. Fractional
Shares will not be issued under the Plan, and any amount that would otherwise
have been applied to the purchase of a fractional Share shall be repaid to the
Employee within a reasonable time thereafter unless the Committee, in its
discretion, provides for an election to permit such amounts to be retained and
applied to the purchase of Shares in the following Offering and the respective
Employee so elects. The Company will deliver to each participating Employee a
certificate representing the shares of Common Stock purchased within a
reasonable time after the Purchase Date.

     (c)  Any amounts contributed by an Employee or withheld from the Employee's
compensation that are not used for the purchase of Shares, whether because of
such Employee's withdrawal from participation in an Offering (voluntarily, upon
termination of employment, or otherwise) or for any other reason, except as
provided in Section 7(b), shall be repaid to the Employee or his or her
Designated Beneficiary or legal representative, as applicable, within a
reasonable time thereafter unless the Employee is eligible to and does elect to
apply such amounts to the purchase of Shares in the next Offering to commence
after the date of withdrawal.

     (d)  The Company's obligation to offer, sell and deliver Shares under the
Plan at any time is subject to (i) the approval of any governmental authority
required in connection with the authorized issuance or sale of such Shares, (ii)
satisfaction of the listing requirements of any national securities exchange or
securities market on which the Common Stock is then listed, and (iii)
compliance, in the opinion of the Company's counsel, with all applicable federal
and state securities and other laws.

8.   LIMITATIONS ON PURCHASE RIGHTS.

     (a)  Any provision of the Plan or any other employee stock purchase plan of
the Company or any subsidiary (collectively, "Other Plans") to the contrary
notwithstanding, no Employee shall be granted the right to purchase Common Stock
(or other stock of the Company and any subsidiary) under the Plan and all Other
Plans at a rate that exceeds an aggregate of $25,000 (or such other maximum as
may be prescribed from time to time by Section 423) in Fair Market Value of such
stock (determined at the time the rights are granted) for each calendar year in
which any such right is outstanding.

     (b)  An Employee's participation in any one or a combination of Offerings
under the Plan shall not exceed such additional limits as the Committee may from
time to time impose.

9.   TAX WITHHOLDING.

     Each participating Employee shall pay to the Company or the applicable
Subsidiary, or make provision satisfactory to the Committee for payment of, any
taxes required by law to be withheld in respect of the purchase or disposition
of Shares no later than the date of the event creating the tax liability.

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In the Committee's discretion and subject to applicable law, such tax
obligations may be paid in whole or in part by delivery of Shares to the
Company, including Shares purchased under the Plan, valued at Fair Market Value
on the date of delivery. The Company or the applicable Subsidiary may, to the
extent permitted by law, deduct any such tax obligations from any payment of any
kind otherwise due to the Employee or withhold Shares purchased hereunder, which
shall be valued at Fair Market Value on the date of withholding.

10.  PARTICIPANTS' RIGHTS AS SHAREHOLDERS AND EMPLOYEES.

     (a)  No participating Employee shall have any rights as a shareholder in
the Shares covered by a right granted hereunder until such right has been
exercised, full payment has been made for such Shares, and the Share certificate
is actually issued.

     (b)  Each Employee is an employee-at-will (that is to say that either the
Employee or the Company or any Subsidiary may terminate the employment
relationship at any time for any reason or no reason at all) unless and only to
the extent provided in a written employment agreement for a specified term
executed by the chief executive officer of the Company or his duly authorized
designee or the authorized signatory of any Subsidiary. Neither the adoption,
maintenance, nor operation of the Plan nor any grant of rights hereunder shall
confer upon any Employee any right with respect to the continuance of his/her
employment with the Company or any Subsidiary nor shall they interfere with the
rights of the Company or Subsidiary to terminate any Employee at any time or
otherwise change the terms of employment, including, without limitation, the
right to promote, demote or otherwise re-assign any Employee from one position
to another within the Company or any Subsidiary.

11.  RIGHTS NOT TRANSFERABLE.

     Rights under the Plan are not assignable or transferable by a participating
Employee other than by will or the laws of descent and distribution and, during
the Employee's lifetime, are exercisable only by the Employee. The Company may
treat any attempted inter vivos assignment as an election to withdraw from all
pending Offerings.

12.  AMENDMENTS TO OR TERMINATION OF THE PLAN.

     The Board shall have the right to amend, modify or terminate the Plan at
any time without notice, subject to any stockholder approval that the Board
determines to be necessary or advisable; provided that the rights of Employees
hereunder with respect to any ongoing or completed Offering shall not be
adversely affected.

13.  GOVERNING LAW.

     Subject to overriding federal law, the Plan shall be governed by and
interpreted consistently with the laws of the Commonwealth of Massachusetts.

14.  EFFECTIVE DATE AND TERM.

     This Plan will become effective on October 1, 1999, and no rights shall be
granted hereunder after September 30, 2009.

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As amended by the Board of Directors on November 17, 2000 and approved by the
Stockholders on February 15, 2001. As amended by the Board of Directors on
February 14, 2002.

                                       6<PAGE>

                                                                   Exhibit 10.36
                                                                   -------------

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

                               Purchase Agreement
                                   For Product
                                     Between
                              NETWORK ENGINES, INC.
                                       And
                                 EMC CORPORATION

Contents                                                                    Page
--------                                                                    ----
   1.0   Definitions..........................................................2
   2.0   Scope Of Agreement...................................................3
   3.0   Term And Termination.................................................3
   4.0   Intellectual Property Rights.........................................4
   5.0   Product Documentation................................................4
   6.0   Price And Payment....................................................4
   7.0   Purchase Orders......................................................5
   8.0   Forecasts............................................................5
   9.0   Supply Flexibility...................................................5
  10.0   Shipping, Delivery And Packaging.....................................6
  11.0   Acceptance...........................................................7
  12.0   Warranty.............................................................7
  13.0   Product Support......................................................8
  14.0   EMC Requested Changes................................................8
  15.0   Mandatory Engineering Changes........................................9
  16.0   NEI Requested Changes................................................9
  17.0   Product Withdrawals.................................................10
  18.0   Left Intentionally Blank............................................10
  19.0   Product Quality.....................................................11
  20.0   Review And Planning Meetings........................................11
  21.0   Reports.............................................................11
  22.0   Liability For Injury And Limitation Of Liability....................11
  23.0   Confidential Information & Publicity................................12
  24.0   Infringement........................................................12
  25.0   Manufacturing Rights................................................13
  26.0   Miscellaneous Provisions............................................14
  27.0   Entire Agreement....................................................17

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Exhibits
--------

     A    Product / Repair Pricing, Lead-time, Upside, Cancellation and
          Reschedule Terms
     B    EMC On-Order Parts
     C    Product Specification and Requirements
     D    NEI Quality Plan
     E    Technical Support
     F    RMA Procedure
     G    Product Repair
     H    Software License
     I    Indemnity Country List

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                         Purchase Agreement For Product

This Purchase Agreement for Product ("Agreement"), effective as of the date last
signed ("Effective Date"), is entered into by and between EMC CORPORATION
("EMC"), a Massachusetts (U.S.A.) corporation, with offices at 171 South Street,
Hopkinton, MA 01748 and NETWORK ENGINES, INC. ("NEI"), a Delaware (U.S.A.)
corporation with offices at 25 Dan Road, Canton, Massachusetts, 02021.

                       Business Background and Objectives

     WHEREAS, NEI has developed, designs and manufactures and/or markets certain
items, more specifically defined below as "Product(s)", and

     WHEREAS, the parties desire for EMC and/or certain other companies to be
able to purchase such items and to use, resell and/or distribute such through
EMC's customary marketing and product fulfillment channels;

     NOW, THEREFORE, in consideration of the premises and covenants set forth
herein and intending to be legally bound, the parties hereby agree as follows:

                               Terms of Agreement

1.0  DEFINITIONS
     -----------

1.1  "Product(s)" means the items described in Exhibit C, "Technical Purchase
     Specification"," which is hereby attached to and incorporated into this
     Agreement. The parties may add other items available from NEI to this
     Agreement as mutually agreed upon in writing, and such shall also become
     "Product(s)". The "Product" shall not include the packaging for any
     Products, which shall be the responsibility of EMC, as referenced in
     Section 10.9. In the event there is a conflict between or among any of the
     headings set forth in Exhibit C, the following rules of construction shall
     apply: The Product Specification shall control in the event of conflict
     with NEI's part number or description. NEI's part number is referenced for
     NEI's convenience only.

1.2  "Product Specification" means the information set forth in, and the EMC
     part number specified in Exhibit C, "Technical Purchase Specification",
     which is hereby attached to and incorporated into this Agreement. The
     Product Specifications shall be mutually developed and agreed for each
     Product. To the extent that Product Specifications contain Confidential
     Information of NEI, the Product Specification shall be deemed Confidential
     Information, as further described in Section 23.

1.3  "Product Support" means support that includes, but is not limited to
     testing, repair, upgrades, reporting, failure analysis, and closed loop
     corrective action for both hardware and software.

1.4  "Product Documentation" means the, user manual, diagnostic software
     documentation, and operations manual for the Product(s)to the extent that
     NEI has produced any such documents.

1.4  "End User" means EMC's customer as delivered through EMC's direct or
     indirect channel, or EMC, for EMC's internal use.

1.5  "Business Day(s)" means a day which is Monday through Friday, excluding
     legal holidays, unless otherwise detailed in this Agreement.

1.6  "EMC Logistics Partner" means a business or company, as listed in Exhibit
     J, "EMC Logistics Partners", that is authorized to buy Product(s) from NEI,
     under the terms set forth in this

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     Agreement for the sole purpose of providing customer fulfillment for EMC.
     The list of entities set forth on Exhibit J may be amended from time to
     time upon the mutual written agreement of the parties. Any such EMC
     Logistics Partner shall (a) specifically agree to be bound by the terms of
     this Agreement, and (b) be subject to NEI's credit requirements.

1.7  "Authorized Repair Agent" shall include EMC Field Service personnel, when
     such personnel are replacing, repairing or otherwise servicing field
     replaceable units, such as disk drives or entire units. NEI may certify
     other third party personnel as Authorized Repair Agents in its reasonable
     discretion.

2.0  SCOPE OF AGREEMENT
     ------------------

2.1  NEI agrees to sell Product(s) and provide Product Support to EMC in
     accordance with the terms and conditions of this Agreement. This Agreement
     is non-exclusive and the parties may enter into similar agreements with
     other parties. EMC shall not be obligated to purchase any Product(s) or
     Product Support from NEI hereunder.

2.2  NEI agrees to offer to sell all generally available Product(s) features,
     functions and support, maintenance and other related services to EMC as
     early as it does to any of its other customers, provided, however, that the
     sale of any such Products to EMC may be delayed in the event that EMC
     requests different or customized Specification for the EMC version of the
     Product.

3.0  TERM AND TERMINATION
     --------------------

3.1  Subject to the provisions of sub-Sections 3.2, 3.3, 3.4 and 3.5 below, this
     Agreement shall consist of an initial term of three (3) year(s), commencing
     on the Effective Date and shall thereafter automatically renew for
     successive periods of one (1) year each, unless either party sends the
     other written notice of nonrenewal at least three (3) months prior to the
     expiration of the then current period.

3.2  Expiration of this Agreement will not relieve the parties of any
     obligations incurred prior to the date of termination.

3.3  In addition to the expiration specified in sub-Section 3.1 above, either
     party may immediately terminate this Agreement upon written notice if the
     other party:

     3.3.1 becomes insolvent or bankrupt, files or has filed against it a
          petition in bankruptcy, or undergoes a reorganization pursuant to a
          petition in bankruptcy filed with respect to it; provided that such
          proceeding is not vacated, dismissed or set aside within thirty (30)
          days after the date of commencement thereof; or

     3.3.2 is dissolved or liquidated, or has a petition for dissolution or
          liquidation filed with respect to it; or

     3.3.3 makes an assignment for the benefit of creditors; or

     3.3.4 ceases to function as a going concern or to conduct its operations in
          the normal course of business.

3.4  If either party breaches any material provision of this Agreement, the
     other Party may terminate this Agreement upon thirty (30) days prior
     written notice, provided the breach is not cured within such thirty (30)
     day period, and provided further that if the breach is not capable of cure
     within thirty days, the non-breaching party may not terminate for sixty
     days if the breaching party promptly commences to cure such breach (within
     the thirty day period) and diligently and continuously pursues cure until
     such time as the breach is fully cured.

3.5  EMC will, in its sole discretion, have the right to terminate this
     Agreement and/or any license(s) granted to NEI by written notice to NEI,
     such termination to be effective immediately, if NEI

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     merges, is acquired, or undergoes any consolidation such that it is not the
     continuing or surviving corporation, or attempts to assign any of its
     rights or obligations under this Agreement without EMC's prior written
     consent, which shall not be unreasonably withheld or delayed. EMC's consent
     shall be deemed to have been given if EMC does not specifically notify NEI
     that it is withholding its consent within ten business days of receiving
     notice from NEI of a pending transaction.

3.6  If EMC terminates this Agreement under Sections 3.3, 3.4 or 3.5 above, then
     during any notice period, or simultaneously with its termination notice,
     EMC may issue additional purchase orders with deliveries to be scheduled
     not later than sixty (60) days after the specified termination date.

4.0  INTELLECTUAL PROPERTY RIGHTS
     ----------------------------

4.1  During the term of this Agreement, EMC is authorized to use NEI's
     trademarks, trade names and logos in connection with EMC's sale,
     advertisement, and promotion of Product(s) but only in a manner as
     specified by NEI, and only in a manner beneficial to NEI or as otherwise
     permitted by law. Upon termination of this Agreement, except to the extent
     permitted by law, EMC shall cease to use any such marks, names, or logos
     and shall, within a reasonable time, remove any reference to NEI from its
     advertising and promotional material. EMC shall not make any claim of
     ownership to any NEI mark.

4.2  Except as permitted at law, NEI shall not publicize or use the name or
     trademark of EMC in any manner related to this Agreement without EMC's
     written consent.

4.3  NEI grants EMC all appropriate rights and licenses under NEI's applicable
     patents, copyrights and other intellectual property rights, necessary for
     EMC to use, market, promote, lease, and sell and/or license the Product(s)
     provided under this Agreement. Except as herein stated, no other rights or
     licenses are granted to EMC.

4.4  Software License terms are as specified in the Exhibit H, which is hereby
     attached to and made a part of this Agreement.

5.0  PRODUCT DOCUMENTATION
     ---------------------

5.1  NEI shall provide EMC with one (1) electronic master copy of current
     Product Documentation for each Product(s) immediately following the
     execution of this Agreement solely for internal use and for the purpose of
     the qualification, sale, service, and support of Product(s) under this
     Agreement. Each set of documentation shall include all similar
     documentation generally provided to NEI's OEM customers. Additional copies
     of Product Documentation and changes thereto may be ordered by EMC. NEI
     shall provide EMC with all updates and changes to such documentation, as
     they become available to NEI.

5.2  NEI hereby grants EMC, under all of NEI's applicable intellectual property
     rights, a worldwide, non-exclusive, right and license to prepare, or
     authorize others to prepare on EMC's behalf, derivative works based on the
     Product Documentation for reproduction, publication, training, distribution
     and use solely in connection with Product(s) purchased under this
     Agreement; provided, however, that EMC shall have no right to publish or
     distribute any Product Documentation which is marked as NEI Confidential
     Information except as allowed under Section 11.4 and Exhibit E, Section
     1.5. EMC shall preserve NEI's copyright and other notices, and shall not
     remove such notices from the Product Documentation. However, EMC shall have
     all right, title, and interest in that portion of the altered Product
     Documentation prepared by EMC. EMC shall make no substantive
     representations concerning NEI or the Products except as set forth in the
     printed documentation furnished to EMC by NEI. If EMC modifies and
     introduces errors into the Product Documentation, NEI has no liability for
     such errors and EMC shall indemnify NEI regarding any such errors.

                                       5

<PAGE>

6.0  PRICE AND PAYMENT
     -----------------

6.1  The prices to be paid by EMC for any Product(s) ordered pursuant to this
     Agreement are set forth in Exhibit A. [**], these prices are the [**]
     prices [**] during the initial term of this Agreement. NEI shall update the
     Exhibit A pricing on a quarterly basis at a minimum. The updated pricing
     shall apply to NEI shipments beginning the first day of each calendar
     quarter unless otherwise agreed to by EMC.

6.2  NEI warrants to EMC that the prices in this Agreement do not exceed those
     offered to other customers purchasing products identical to the Product(s)
     in like or lesser quantities and upon substantially similar terms and
     conditions.

6.3  All prices and fees described or contemplated under this Agreement are in
     U.S. dollars. Product(s) pricing does not include federal, state, or local
     excise, sales, or use taxes, except those taxes that are based on NEI's
     income. If such taxes are applicable, they shall be set out as a separate
     line item on NEI's invoice. EMC agrees to pay all applicable taxes (other
     than taxes based upon NEI's net income), unless EMC procures and provides
     to NEI an exemption certificate in a form reasonably acceptable to NEI and
     to the appropriate taxing authority.

6.4  Payment terms for all Product(s) sold to EMC by NEI shall be net [**] days
     from the date of receipt of a correct invoice provided that the invoice is
     issued on or after the day the applicable Product(s) is shipped from NEI to
     EMC. Payment and/or acceptance of payment of an invoice shall not
     constitute or imply acceptance of the Product(s) or relieve NEI or EMC of
     any obligations assumed under this Agreement, nor prevent EMC or NEI from
     asserting any other rights it may have under this Agreement.

7.0  PURCHASE ORDERS
     ---------------

7.1  EMC shall submit a written purchase order for all Product(s) ordered from
     NEI. EMC shall, during the first week of every month, provide NEI with a
     rolling, [**]-day Purchase Order, cancelable and reschedulable only as
     provided in Exhibit A. Purchase orders shall specify EMC's part numbers,
     Product(s) model numbers, quantity ordered, shipping destination, carrier,
     and shipment dates. NEI shall acknowledge in writing to EMC its receipt and
     acceptance or rejection of such purchase order within [**] (Business Days
     of NEI's receipt of each purchase order. NEI's acceptance shall neither
     change nor add to the provisions of this Agreement. For quantities of
     Products, as listed in Exhibit C, that are within EMC's forecasts, NEI
     shall accept such purchase orders at lead-time, provided such purchase
     orders comply with the terms of this Agreement. NEI shall establish a
     supply line that results in sufficient material being available to support
     the requested delivery dates in EMC's Rolling [**] day Purchase Order
     Purchase Order(s), plus upside orders, as described in Exhibit A. If,
     within [**] Business Days from NEI's receipt of a purchase order, EMC does
     not receive written notice from NEI rejecting the purchase order and
     specifying the reasons for such rejection, the purchase order shall be
     deemed accepted by NEI. In the event of a conflict between the provisions
     of this Agreement and the terms and conditions of EMC's purchase order, the
     provisions of this Agreement shall prevail. Any additional terms contained
     in EMC's purchase orders or NEI's order acknowledgements shall not be
     binding unless accepted by the other party in writing.

8.0  FORECASTS
     ---------

8.1  EMC will provide NEI with good faith monthly rolling forecasts for [**]
     months (i.e. [**] days beyond the Purchase Order as described in Section
     7.1 above) of EMC's estimated Product(s) purchase requirements. EMC's
     forecasts are for planning purposes only. EMC is under no obligation to
     purchase forecasted quantities and if EMC fails to purchase any forecasted
     quantities,

                                       6

<PAGE>

     EMC shall have no liability of any kind except as specifically provided in
     Exhibits A and B, nor incur any penalties or retroactive price increases
     unless otherwise agreed to by EMC in writing.

9.0  SUPPLY FLEXIBILITY
     ------------------

9.1  LEAD-TIME: Product(s) lead-time is defined as that period of time
     ---------
     commencing upon NEI's receipt of EMC's purchase order until shipment by NEI
     to EMC. Lead-time for each Product is stated in Exhibit A, Product Pricing,
     Lead-time, Upside, Cancellation and Reschedule Terms. NEI may request to
     change a Product's standard Lead Time. Such a request must be made in
     writing and contain the reason for the requested change, a corrective
     action plan to reestablish the standard Lead Time and the anticipated date
     as to when the original standard Lead Time will be reestablished. All
     changes to a Product's standard Lead Time are subject to EMC's written
     approval, which shall not be unreasonably withheld.

9.2  RESCHEDULES: EMC shall have the right and ability to reschedule any
     -----------
     purchase order according to the terms documented under Reschedule Terms in
     Exhibit A, Product Pricing, Lead-time, Upside, Cancellation and Reschedule
     Terms.

9.3  UPSIDE SUPPLY: NEI shall establish a supply line that results in sufficient
     -------------
     material being available to support upside quantities according to the
     terms documented under Upside Support in Exhibit A, Product Pricing,
     Lead-time, Upside, Cancellation and Reschedule Terms.

9.4  CANCELLATION: EMC shall have the right to cancel delivery of any purchase
     ------------
     order according to the terms documented under Cancellation Terms, at any
     time without NEI's consent, provided NEI receives EMC's written notice
     prior to shipment. Such cancellations shall be subject to the conditions
     documented under Cancellation Terms in Exhibit A Product Pricing,
     Lead-time, Upside, Cancellation and Reschedule Terms. NEI shall use
     commercially reasonable efforts to mitigate EMC's liabilities for all
     material exposure due to cancellations, by, among other things, canceling
     or rescheduling orders for component parts, using component parts for
     orders for other customers, if feasible and/or, with EMC's permission,
     brokering component parts to other parties.

10   SHIPPING, DELIVERY AND PACKAGING
     --------------------------------

10.1 Delivery ("Delivery") shall be F.O.B. Origin. Title and risk of loss shall
     pass to EMC upon Delivery to the carrier. EMC may modify its routing
     instructions from time to time and will provide NEI with an updated version
     of any such modified instructions.

10.2 EMC and NEI may drop-ship product(s) to End User upon written request by
     EMC. EMC shall provide the name and billing number of its preferred freight
     carrier. EMC will issue individual purchase orders for each of its drop
     shipment customer requirements (frequency could be multiple purchase orders
     daily). NEI is required to communicate (via fax or electronically) drop
     shipment information such as purchase order number, date of shipment,
     carrier waybill number, invoice number and serial numbers shipped to EMC
     [**] following the date the Product(s) shipped. Should the volume of
     drop-ship orders be such that NEI cannot provide such information [**], NEI
     shall use its best efforts to develop an automated system such that it can
     provide the requested information, in a form acceptable to EMC, [**].

10.3 NEI shall be responsible for any increased freight charges incurred for
     Product(s) shipped outside the routing instructions to include, but not be
     limited to, use of other than EMC preferred carriers, unless it is not
     commercially feasible to comply with the routing instructions. If there are
     any conflicts between the current version of routing instructions provided
     to NEI and the contents of this Section 10, the current routing
     instructions will prevail.

                                       7

<PAGE>

10.4 The shipment dates shall be those specified in each purchase order issued
     under this Agreement. Shipments will be considered on time if they are made
     no more than [**] than the shipment date specified in the EMC purchase
     order. If EMC agrees to take partial shipments of any order, each such
     partial shipment shall be deemed a separate sale. At the regular Review and
     Planning Meetings conducted as described in Section 20 below, the parties
     shall review NEI's record of on time shipments, and shall identify issues
     and develop a plan to address any problems with repeated late shipments.
     Chronic and/or sustained poor on-time delivery performance shall be
     considered a material breach of this Agreement. For purposes of this
     Agreement, "Chronic and/or Sustained Poor On-time Delivery Performance"
     shall be defined as delivering less than [**] % of the units scheduled for
     delivery in a given month on time for [**] consecutive months, or for a
     total of [**] or more over the course of a year.

10.5 If NEI anticipates or becomes aware that it will not supply the Product on
     the shipment date acknowledged by NEI, for any reason to include but not be
     limited to material shortage, process changes, capacity limitations or
     causes due to common carriers, NEI shall notify EMC immediately after NEI
     has knowledge of the situation. The notification may be communicated by
     facsimile, telephone, electronic mail or any other method agreed to by the
     parties, provided that NEI shall use reasonable efforts to obtain EMC's
     actual acknowledgment of the notice of anticipated delay. NEI and EMC will
     jointly develop alternatives to resolve any late shipment of the Product,
     including use of premium routing. NEI will develop recovery plans with new
     committed shipment dates and communicate such plans to EMC within [**]
     hours of missed shipments. If NEI is unable to deliver the Product at the
     FOB Point on the acknowledged ship date, through no fault of EMC and not
     for a reason excused under Section 26.7 Force Majeure, EMC may require NEI
     to use premium routing and ship the freight pre-paid at NEI's expense for
     the excess cost. In the event NEI has an allocation situation, NEI shall
     use an allocation formula for EMC [**].

10.7 All shipments shall be uninsured unless otherwise specified by EMC's
     designated procurement agents. Prepay and bill shipment shall be used only
     when specified by EMC's designated procurement agents. In the event that
     prepay and bill is used, NEI shall indicate the number of shipping
     containers, weight of each shipment and carrier name on the invoice. Risk
     of loss shall pass to EMC at the FOB point.

10.8 Each shipment of the Product by NEI shall include a packing slip which
     contains at a minimum, (i) NEI name, (ii) box number (e.g., 1 of 3, 2 of
     3), (iii) receiving address, (iv) EMC's purchase order number, (v) EMC's
     part number, (vi) shipping quantity, (vii) date of shipment, and (viii) RMA
     number when applicable per Exhibit E.

10.9 All Product shall be packaged, marked and otherwise prepared in accordance
     with EMC's specifications attached as Exhibit C and all applicable
     government regulations per good commercial practices EMC shall be
     responsible if its specifications violate or do not meet governmental
     regulations. NEI shall notify EMC if NEI becomes aware that EMC's
     specifications do not meet applicable regulations. All Product shall be
     private labeled in accordance with EMC branding instructions as outlined in
     Exhibit C. Packaging for export shipments from the United States may also
     be subject to specific instructions. NEI will notify EMC of any
     extraordinary charges incurred by NEI for such export shipments prior to
     invoicing EMC for these charges.

10.10 NEI will use reasonable commercial efforts to provide the following
     information about its Product in writing within two (2) weeks of receiving
     a written request from EMC: i) country of origin; ii) NAFTA preference
     criteria; iii) harmonized scheduled tariff classification number; and iv)
     export commerce control number ("ECCN"). Upon request by EMC and subject to
     EMC's reasonable assistance, NEI will prepare all international shipping
     documentation, including commercial

                                       8

<PAGE>

     invoice, NAFTA certificate, Shipper's Letter of Instruction, Shipper's
     Export Declaration and any other necessary documentation, for international
     shipments.

11.0 ACCEPTANCE
     ----------

Products will be deemed to be accepted when NEI Delivers Products as ordered by
EMC. EMC shall promptly notify NEI if EMC receives any shipments that do not
match an applicable order. NEI shall cure any defective delivery of Products as
described in Section 12, Warranty, below (including advance shipment of
replacement Products, as provided in Section 12).

12.0 WARRANTY
     --------

12.1 NEI warrants that all Product(s)shipped under this Agreement will for a
     period of [**] months from the date of shipment of the Product: (i) conform
     to and perform in accordance with the applicable Product Specifications;
     set forth in Exhibit C under normal use and operation; (ii) and be free
     from defects in design, materials and workmanship. Should any products fail
     to conform with the foregoing warranty within the first [**] days after
     delivery, NEI shall advance-ship replacement Products to EMC's designated
     location, within [**] hours of notice of the defect from EMC. EMC shall
     return the defective Products to NEI within [**] weeks of receipt of the
     replacement Products. Except with regard to repaired Product(s), NEI
     further warrants that only new materials will be used in the Product(s).

12.2 All warranties made in this Agreement shall survive inspection, test,
     acceptance and payment.

12.3 Product(s)repaired under this Agreement shall be warranted for the longer
     of [**] days or the balance of the original Product(s)warranty.

12.4 NEI further warrants that EMC shall receive good title to each
     Product(s)free and clear of all liens, encumbrance, and claims, and in
     performing under this Agreement, NEI shall, and each Product(s)delivered
     under this Agreement shall, comply with all applicable federal, state and
     local, laws, statutes, ordinances, rules and government regulations and
     codes as such laws, statutes, ordinances, rules and regulations and codes
     existed on the date of Delivery.

12.5 NEI further warrants that each Product(s)has been, and will continue for
     [**] months from Delivery to be regulatory compliant as any applicable
     regulations existed on the original date of Delivery of the Product. Each
     Product(s)shall bear appropriate labels indicating compliance with the
     requirements of this Section.

12.6 NEI acknowledges that certain components integrated into the Product(s) are
     designated as Field Replaceable Units (FRUs). Installation and removal of
     Product FRUs by EMC shall not void the Product Warranty.

12.7 If the Products sold hereunder are not as warranted, NEI shall, either
     repair or replace the Product at NEI's expense. EMC agrees that parts
     utilized in warranty services may be remanufactured and/or refurbished. All
     replaced parts shall be the property of NEI, on an exchange basis.

     The above warranties shall not apply to Product(s) that have been damaged
     as a result of misuse, neglect or accident; operation outside of the
     environmental or power specifications provided by NEI; have been wired,
     repaired or altered by anyone other than NEI or an Authorized Repair Agent;
     or have had their serial numbers removed, defaced or altered. NEI's sole
     obligation hereunder for Products that do not apply to the above warranties
     shall be to repair, replace or scrap Product(s) at EMC's option and
     expense.

                                       9

<PAGE>

12.8 THE FOREGOING WARRANTIES SET FORTH IN THIS SECTION 12 ARE IN LIEU OF, AND
     NEI EXPRESSLY DISCLAIMS, ALL OTHER REPRESENTATIONS, WARRANTIES OR
     CONDITIONS, WHETHER EXPRESS, IMPLIED, STATUTORY OR OTHERWISE, INCLUDING,
     WITHOUT LIMITATION, THE IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR
     A PARTICULAR PURPOSE AND NON-INFRINGEMENT OF THIRD PARTY RIGHTS.

13.0 PRODUCT SUPPORT
     ---------------

13.1 NEI will provide technical support to EMC for the Product(s) as described
     in Exhibit E, which is hereby attached to and incorporated into this
     Agreement.

13.2 The process for returning defective Product(s) and obtaining a Return
     Material Authorization ("RMA") is set forth in Exhibit F, which is hereby
     attached to and made a part of this Agreement

13.3 NEI will provide repair for the Product(s) to EMC in accordance with
     Exhibit G, which is hereby attached to and incorporated into this
     Agreement.

13.4 NEI will provide EMC, [**], with initial familiarization and standard sales
     training, including materials, [**], for a reasonable number of EMC
     employees at an EMC facility specified by EMC in Massachusetts. NEI hereby
     authorizes EMC to reproduce such materials in an amount reasonably
     necessary to implement the provisions of this Section 13. All expenses of
     NEI's employees associated with such training, such as transportation,
     meals and lodging, are the responsibility of NEI. Additional standard
     technical training courses from NEI's Training Department shall be made
     available to EMC at NEI's standard locations, rates, and terms.

14.0 EMC REQUESTED CHANGES
     ---------------------

14.1 EMC may request, in writing, that NEI evaluate free of charge a change to
     the method of packing, packaging, or shipment, or evaluate an engineering
     change to the Product(s) which is not a Mandatory Engineering Change (as
     defined in Section 15 below). Such request will include a description of
     the proposed change sufficient to permit NEI to evaluate its feasibility.

14.2 Promptly after receipt of such request, NEI shall notify EMC in writing of
     its response to such request. Acceptance of such EMC proposed change(s)
     shall not be unreasonably withheld by NEI, provided, however, that NEI may
     condition its acceptance of a change on EMC's commitment to purchase a firm
     quantity of such changed Products. If such response indicates acceptance of
     the proposed change, NEI shall also state in such response (i) the terms
     and conditions under which it would make the proposed change, (ii) the
     impact on NEI's costs and the resulting charges to EMC, if any, created by
     the changes, and (iii) the earliest date which NEI estimates such change
     could be implemented. If the proposed change is to result in an increased
     charge to EMC, EMC must provide prior written approval to NEI before the
     change is implemented. If the proposed change would affect regulatory
     agency certifications, the above referenced period shall be extended to
     account for the time periods necessary for those regulatory agencies to
     carry out their evaluations.

15.0 MANDATORY ENGINEERING CHANGES
     -----------------------------

15.1 In the event that changes are required to make the Product(s) conform to
     safety/regulatory agency requirements ("Mandatory Engineering Changes"),
     NEI shall immediately implement the Mandatory Engineering Changes in new
     production of the Product(s)without charge to EMC.

15.2 NEI and EMC shall discuss and mutually agree upon one or more of the
     following remedies for implementing Mandatory Engineering Changes on
     previously delivered Product, including which party shall bear the costs of
     any such Mandatory Engineering Change, provided, however, that if the
     Products did not, or do not, conform to safety/regulatory agency
     requirements as such

                                       10

<PAGE>

     requirements existed on the date of delivery, all such changes shall be at
     no charge to EMC, including shipping and transportation costs. NEI shall
     use reasonable efforts to immediately implement the selected remedies.

     15.2.1 EMC may request an RMA number and return the affected Product(s)to
          NEI or an authorized repair facility for repair or replacement.

     15.2.2 EMC may request and NEI will ship Mandatory Engineering Change kits
          for Product(s). NEI shall provide EMC with installation instructions
          necessary to implement the Mandatory Engineering Changes at EMC's or
          EMC's customer's locations.

     15.2.3 NEI may be asked to provide on-site technical assistance at the
          appropriate location to install the Mandatory Engineering Change.

     15.2.4 EMC may request that a NEI-approved third party maintenance
          organization install the Mandatory Engineering Change kits for the
          affected Product.

15.3 NEI shall provide EMC with written notice of any Mandatory Engineering
     Changes as soon as possible after NEI knows of such change.

15.4 EMC shall have the option to cancel open purchase orders without penalty if
     the Mandatory Engineering Changes are due to the fault or negligence of NEI
     and such Changes are incompatible with or adversely affect performance of
     Product(s) purchased by EMC and such changes are not made compatible with
     the Product(s), or EMC is not provided with an acceptable remedy within
     [**] days after NEI receives notification from EMC of its intent to cancel
     its open purchase orders.

16.0 NEI REQUESTED CHANGES
     ---------------------

16.1 Both parties recognize that there may be optional changes proposed by NEI
     affecting form, fit or function which are not Mandatory Engineering Changes
     ("Optional Engineering Changes"). Optional Engineering Changes may also
     include changes in processes or materials. NEI shall provide EMC copies of
     all Engineering Change Notices affecting Form, Fit, Function (as defined
     below), active components, or reliability as soon as practically possible
     prior to being implemented. NEI will also provide copies of Process Change
     Notification forms related to mutually agreed upon EMC specific
     manufacturing or test processes that would affect the following as soon as
     practical prior to being implemented:

     16.1.1 Form: Defined as a change in the dimensions or the external
          appearance of the Product(s).

     16.1.2 Fit: Defined as a change that affects the physical
          interchangeability of the Product(s)or a field replaceable unit
          ("FRU") of the Product(s).

     16.1.3 Function: Defined as a change that introduces a capability not
          available in the previous connectivity interface, software, firmware,
          or operator interface or affects the interchangeability of the FRUs
          within the Product(s).

16.2 The notice required in sub-Section 16.1, above, shall include a written
     description of the proposed change, including the reason for the change and
     the expected effect of the change on the Product(s), including its price.
     NEI will send such change proposals to EMC's designated engineer, via mail,
     Email, or fax, as agreed between the parties. NEI's notice shall also
     contain (i) an evaluation as to whether or not the changes, if accepted by
     EMC, would be likely to require EMC to re-qualify the Product(s), and (ii)
     a recommendation for or against such re-qualification.

16.3 If the Optional Engineering Changes to Form, Fit or Function of the
     Product(s) proposed by NEI in EMC's sole opinion necessitate evaluation by
     EMC of compatibility with EMC's systems and/or specifications, NEI upon
     EMC's request, shall provide EMC with [**] evaluation products, parts or
     designs which incorporate the proposed changes. EMC shall have the right to
     accept, reject or

                                       11

<PAGE>

     mutually agree to an alternate plan for NEI's proposed Optional Engineering
     Changes and will inform NEI of its approval or rejection of those changes
     in writing within [**] days from receipt of the evaluation products, parts
     or designs provided to EMC, or within [**] days of EMC's receipt of notice
     of such changes, whichever is later. Such approval shall not be
     unreasonably withheld.

16.4 If EMC rejects the Optional Engineering Changes, EMC may, in its sole
     discretion, require NEI to continue supplying the unaltered Product(s).

16.5 NEI will incorporate changes accepted by EMC into Product(s) on EMC's open
     purchase orders at no charge.

16.6 Unless EMC specifically rejects such changes, each version of the
     Product(s) will possess at least the same features and functions, if not
     more, than are offered by NEI in the Product(s) or similar product offered
     by NEI for the same server/host environment. NEI shall introduce all new
     non-exclusive features or functions for the Product(s) as early as the
     introduction in any other similar NEI products for that environment,
     provided, however, that any such feature or functions may be delayed in the
     event that EMC requests different or customized Specification for the EMC
     version of the Product.

16.7 Any changed Product(s) resulting from application of Sections 14, 15 and 16
     shall be considered added as Product(s) to this Agreement, and subject to
     its terms and conditions.

17.0 PRODUCT WITHDRAWALS
     -------------------

17.1 NEI will notify EMC in writing at least [**] days prior to Product(s)
     withdrawal. During the withdrawal notice period, EMC may issue purchase
     orders with normal lead-time up until the last time buy. NEI will extend
     EMC a [**] month delivery window for the last time buy quantity. Any last
     time buy purchase order shall be placed by EMC shall be non-cancellable.
     The [**] month window commences upon termination of the [**] day withdrawal
     notice period. If the EOL is initiated by EMC, EMC will provide NEI an EOL
     plan and will issue non-cancellable purchase orders within 3 months of the
     notice for the quantities and delivery dates required by EMC. NEI shall
     notify EMC as soon as practically possible if it receives a notice from a
     supplier that the supplier is withdrawing a component for the Products, for
     which there is no commercially reasonable substitute. If, as a result of
     such component EOL, NEI must withdraw a Product hereunder, and if NEI is
     required to make a last-time purchase of such components in order to comply
     with its obligations under this Section 17, EMC shall bear the expense of
     the component purchase as it is incurred by NEI, with the cost of such
     expense being credited, in a manner approved by EMC on a case by case
     basis, toward the purchase price of the resultant Products.

17.2 NEI shall provide Product repair service for the Product(s) to EMC at a
     reasonable price and lead time, until the end of [**] years after
     Product(s) withdrawal, pursuant to terms and conditions set forth in
     Exhibit G, Product Repair. The foregoing notwithstanding, EMC shall have no
     obligation to order any Product repair service from NEI.

18.0 Left Intentionally Blank

19.0 PRODUCT QUALITY
     ---------------

19.1 NEI shall participate in the NEI Quality Plan as required in Exhibit D,
     which is hereby attached and incorporated into this Agreement, and shall
     meet or exceed the quality and reliability requirements stated therein.

20.0 REVIEW AND PLANNING MEETINGS
     ----------------------------

20.1 NEI hereby appoints its OEM Program Manager as its liaison to monitor NEI's
     performance and delivery of Product(s) under this Agreement. EMC hereby
     appoints its designated NEI Business

                                       12

<PAGE>

     Manager as its liaison to monitor NEI's performance and delivery of
     Product(s) hereunder. These liaisons will also be responsible for
     coordinating meetings and discussions and reports provided for in this
     Agreement. The names, telephone and facsimile numbers of the liaisons will
     be provided by the parties to each other and the liaisons may be changed by
     written notice from one party to the other.

20.2 EMC's designated NEI Business Manager will conduct quarterly NEI
     performance review and planning reviews with NEI's EMC account management
     team. EMC and NEI will determine the location and times for these meetings.
     The purpose of these meetings is listed below:

     20.2.1 Review NEI's performance over the past quarter;

     20.2.2 Review action items and resolution;

     20.2.3 Identify opportunities and areas of improvement;

     20.2.4 Agree on commitments, set target dates, and define "persons"
          responsible;

     20.2.5 Review appropriate NEI reports; and

     20.2.6 Review NEI quality and reliability improvement plans

     20.2.7 Review the accuracy of EMC's forecasting process

     20.2.8 Resolve any outstanding payment issues

     20.2.9 Review EMC's performance of its obligations over the past quarter.

21.0 REPORTS
     -------

21.1 Recurring reports to be provided by NEI and EMC under this Agreement are
     referenced in Exhibit A, Exhibit D and Exhibit G. All reports will be
     provided to EMC in electronic form or as otherwise mutually agreed. There
     shall be no charge to EMC for any reports required under this Agreement.

22.0 LIABILITY FOR INJURY AND LIMITATION OF LIABILITY
     ------------------------------------------------

22.1 NEI shall indemnify, defend and hold EMC harmless against all claims,
     suits, losses, expenses and liabilities for bodily injury, personal injury,
     death, and property damage directly or indirectly caused by any Product(s)
     or through the negligence of NEI or any person for whose actions NEI is
     legally liable. The indemnities provided in this sub-Section 22.1 are
     conditioned upon the fact that (i) EMC has notified NEI promptly in writing
     of any such claims, (ii) NEI shall have sole control of the defense of such
     claims and all negotiations for its settlement and compromise, and (iii)
     EMC shall reasonably cooperate with NEI in the defense or settlement of
     such claims. NEI shall carry and maintain Workers Compensation and general
     liability insurance coverage to satisfactorily cover NEI's obligations
     under this Section.

22.2 NEITHER PARTY SHALL BE LIABLE TO THE OTHER FOR ANY INDIRECT, SPECIAL,
     INCIDENTAL, OR CONSEQUENTIAL DAMAGES,INCLUDING LOST PROFITS, ARISING OUT OF
     THIS AGREEMENT OR ANY PERFORMANCE HEREUNDER, EVEN IF SUCH PARTY HAS BEEN
     ADVISED OF THE POSSIBILITY OF SUCH DAMAGES EXCEPT FOR THEIR RESPECTIVE
     OBLIGATIONS UNDER SECTION 22 (LIABILITY FOR INJURY,) SECTION 24,
     (INFRINGEMENT) AND 23 (CONFIDENTIAL INFORMATION AND PUBLICITY) AND EMC'S
     OBLIGATION TO PAY FOR PRODUCT'S PURCHASED HEREUNDER, EACH PARTY'S TOTAL
     LIABILITY FOR ANY CAUSE OF ACTION ARISING IN CONNECTION WITH THIS
     AGREEMENT, AND REGARDLESS OF THE FORM OF ACTION, WHETHER IN CONTRACT OR IN
     TORT INCLUDING NEGLIGENCE, SHALL BE LIMITED TO THER LESSER OF THE

                                       13

<PAGE>

     AMOUNT ACTUALLY PAID BY EMC TO NEI OVER THE YEAR PREVIOUS TO THE CAUSE OF
     ACTION, OR ONE MILLION DOLLARS ($1,000,000).

22.3 Indemnification by EMC: EMC shall indemnify and hold NEI harmless from and
     against any and all claims, actions, or demands arising with respect to
     technology or products added by EMC or sold by EMC with the Products.

23.0 CONFIDENTIAL INFORMATION & PUBLICITY
     ------------------------------------

23.1 Either party may, in connection with this Agreement, disclose to the other
     party information considered confidential and proprietary information of
     the disclosing party ("Confidential Information"). Information shall be
     considered Confidential Information if clearly identified in writing as
     confidential in nature by the disclosing party at the time of disclosure,
     or if the disclosure is oral, within ten (10) Business Days thereafter. The
     receiving party shall protect the disclosing party's Confidential
     Information with the same degree of care that it regularly uses to protect
     its own Confidential Information from unauthorized use or disclosure. Each
     party shall use the other's confidential information solely for purposes of
     performing under this Agreement. No rights or licenses under patents,
     trademarks or copyrights are granted or implied by any disclosure of
     Confidential Information. Sections 23.1 and 23.2 shall survive the
     expiration or termination of this Agreement for a period of five (5) years.

23.2 The obligations of confidentiality imposed by this Agreement shall not
     apply to any Confidential Information that: (a) is rightfully received from
     a third party without accompanying markings or disclosure restrictions; (b)
     is independently developed by employees of the receiving party who have not
     had access to such Confidential Information; (c) is or becomes publicly
     available through no wrongful act of the receiving party; (d) is already
     known by the receiving party as evidenced by documentation bearing a date
     prior to the date of disclosure; or, (e) is approved for release in writing
     by an authorized representative of the disclosing party. This sub-Section
     23.2 shall not supersede any other nondisclosure agreement(s) which may
     otherwise bind the parties.

23.3 Neither party will originate, or authorize, assist or authorize another
     party to produce, any written publicity, news release, marketing collateral
     or other publication or public announcement, whether to the press, actual
     or potential customers, stockholders, or others, relating to this Agreement
     or to any amendment hereto, or to performance hereunder or to the existence
     of an arrangement between the parties, or shall in any manner disclose,
     advertise, or publish the fact that NEI has furnished or contracted to
     furnish the Product(s) to EMC without the prior written consent of the
     other party. Notwithstanding anything in this Agreement to the contrary, i)
     EMC shall not unreasonably withhold or delay approval of disclosure of the
     Agreement for the purpose of NEI complying with any SEC or legal
     regulations and ii) NEI shall allow EMC to propose the exact timing of the
     initial public release regarding the relationship provided that EMC
     provides no less than five (5) Business Days' written notice and
     opportunity to review and approve the release. The existence, terms and
     conditions of this Agreement are considered the Confidential Information of
     both parties.

23.4 Any press release announcing the establishment of this business
     relationship requires EMC's review and written approval, prior to its
     disclosure. Such approval may be withheld at EMC's sole discretion.

24.0 INFRINGEMENT
     ------------

24.1 NEI warrants that, as of the Effective Date, neither any Product(s) nor any
     part of any Product(s) infringes any copyright or trade secret right of any
     person or entity and that, to NEI'S knowledge,

                                       14

<PAGE>

     neither the Product(s) nor any part of the Product(s) infringes any patent
     or trademark issued in the countries set forth in Exhibit H, which is
     hereby attached and incorporated into this Agreement. NEI shall, at NEI's
     expense, indemnify and hold EMC, [**] harmless from and against any claims,
     demands, suits, actions or judgments brought against EMC, [**] (including
     reasonable attorney's fees and costs and including any special,
     consequential or punitive damages awarded by the court in any such suit or
     action) to the extent such action is based upon a claim that any Product(s)
     purchased hereunder infringes a patent issued in the countries set forth in
     Exhibit H, or any copyright, trademark or other intellectual property right
     or misappropriates a trade secret right of any third party, provided that
     EMC gives NEI prompt written notice of any such claim, available
     information, reasonable assistance, and sole authority and control to
     settle or defend the claim. NEI reserves the right to choose the attorneys
     who may pursue any action on its behalf, but EMC may be represented in any
     such action by its own attorneys at its own expense.

24.2 If any Product(s) should become, or in NEI's opinion is likely to become,
     the subject of claim as described in sub-Section 24.1, NEI shall, at NEI's
     expense, implement one of the following remedies: (i) procure for EMC the
     right to continue using the Product, or (ii) replace or modify the
     Product(s) so that its use and resale becomes non-infringing, provided that
     any replacement or modified Product(s) meets substantially the same
     specifications as the original, maintains the same form, fit, function and
     quality, and is acceptable to EMC. If NEI is unable to implement either
     remedy set forth in this sub-Section 24.2, then NEI shall grant EMC a
     refund for the original purchase price of the infringing Product(s) as
     depreciated over a three year term, and accept its return.

24.3 NEI shall have no liability to EMC to the extent that a claim described in
     sub-Section 24.1 is based upon: (i) compliance with specifications or
     designs provided by EMC; (ii) the combination of the Product(s) with other
     product or devices not purchased hereunder where the Product(s) itself
     would not be infringing; or (iii) modifications of the Product(s) made by
     EMC where unmodified Product(s) would not be infringing.

24.4 THE FOREGOING PROVISIONS OF THIS SECTION 24 STATE EMC'S SOLE AND EXCLUSIVE
     REMEDY FOR ANY ALLEGED INFRINGEMENT OR MISAPPROPRIATION BY THE PRODUCTS OF
     ANY THIRD PARTY INTELLECTUAL PROPERTY RIGHTS OF ANY KIND.

25.0 MANUFACTURING RIGHTS
     --------------------

25.1 Concurrent with the execution of this Agreement by the parties hereto, NEI
     shall deposit in escrow and periodically update with Data Securities
     International or some other independent escrow agent reasonably acceptable
     to EMC, pursuant to such party's regular form of escrow agreement, all
     drawings, plans, specifications, methods, techniques and all other
     information, in written or documentary form, human readable or machine
     readable, in any media, regarding or concerning the design, manufacture,
     testing, use, maintenance, operation and reliability, including without
     limitation, product specifications, software and firmware source code
     listings, engineering drawings, approved vendor lists, manufacturing,
     assembly and fabrication process sheets, in process and final test
     procedures and specifications, schematics, bills of materials and
     performance data regarding the design of the Products(s) purchased
     hereunder (collectively, the Manufacturing Information). The escrow agent
     so designated shall be bound to retain the Manufacturing Information in
     escrow for [**] years under the terms of this Agreement and released to EMC
     upon EMC's written certification by an officer of the company that either
     of the following two events has occurred:

                                       15

<PAGE>

     (1) An event of default under Section 3.3 has occurred, NEI was notified of
     the default and has failed to cure such default; or,

     (2) The technical and management team procedure described below fails to
     develop a suitable recovery plan that resumes normal Product shipments to
     EMC within [**] days of the executive management team's first convening:

     If during the term of this Agreement NEI fails to make delivery for a
     period of [**] days after receipt of written notice of default for Products
     listed in Exhibit C in violation of this Agreement, and as long as EMC is
     not also in breach of this Agreement, then NEI and EMC agree to convene, if
     necessary, at NEI's Canton, MA facility as follows:

     For a period of [**] days, a focused team comprising of technical staff
     from both NEI and EMC will jointly identify, investigate and resolve
     whatever issues have disrupted the normal flow of Product deliveries to
     EMC. At a minimum, NEI agrees to make available the appropriate Engineering
     Manager, Production Manager, Product Engineer and Account Manager to this
     team. In turn, EMC agrees to make available the appropriate Engineering
     Manager, Production Manager, Product Engineer, Commodity Manager and Buyer
     and any relevant technical information to this team.

     If, after this [**] day period, a mutually acceptable recovery plan has not
     yet been established, a focused executive management team from both NEI and
     EMC will convene to jointly establish a suitable recovery plan which
     expeditiously facilitates the normal production and flow of product to EMC.
     At a minimum, NEI agrees to make available its President and CEO and the
     appropriate VP's of Sales, Business Development, Quality and Worldwide
     Manufacturing. In turn, EMC agrees to make available its VP's of Supply
     Base Management, Commercial and Technical and Director of Commodity
     Management for the Products listed in Exhibit A.

     In either case, EMC shall certify that it will comply with the terms of the
     manufacturing license granted hereunder.

25.2 In order to secure NEI's performance of its obligations under this
     Agreement, including without limitation manufacture and delivery of the
     Product(s) and spare parts in a timely manner and performance of warranty
     services, in connection with Product(s) and/or services which are or may be
     purchased under this Agreement, NEI hereby grants to EMC a license to all
     documents pertaining to process and procedures, product data, process
     software, firmware, patent rights, and other information used or useful for
     such purposes at a mutually satisfactory licensing arrangement to be
     reasonably agreed by the parties, providing royalty payments reasonably
     satisfactory to NEI. Included in this license is the right to use, modify,
     design manufacture or have manufactured and maintain said manufacturing
     information in the manufacture or contract manufacture of Product(s). Such
     license shall extend to the Products as defined by the then-current Product
     Specifications as listed in Exhibit C, and shall not be construed to grant
     to EMC the right to use any intellectual property or confidential
     information regarding the Products to develop next generation or derivative
     Products. Notwithstanding the foregoing, however, EMC shall have no use or
     benefit of the license granted in this paragraph unless and until, one of
     the two escrow release conditions described above has occurred, and EMC
     shall not have availed itself of another remedy to such default. Prior to
     EMC's request to the escrow agent requesting release of the Manufacturing
     Information and the effectivity of the rights and licenses granted above
     EMC will give NEI [**] days' written notice specifying the default
     condition. Such [**]-day notice shall run concurrently with any cure
     periods otherwise granted to Supplier in this Section 25.

                                       16

<PAGE>

26.0 MISCELLANEOUS PROVISIONS
     ------------------------

26.1 This Agreement shall be governed by and construed in accordance with the
     laws of the Commonwealth of Massachusetts, excluding its conflict of law
     rules and excluding the United Nations Convention on Contracts for the
     International Sale of Goods.

26.2 The parties are and shall remain at all times, independent contractors in
     the performance of this Agreement and nothing herein shall be deemed to
     create a joint venture, partnership or agency relationship between the
     parties. Neither party shall have the right or authority to assume or to
     create any obligation or responsibility, express or implied, on behalf of
     the other except as may be expressly provided otherwise in this Agreement.
     Each party shall be solely responsible for the performance of its employees
     hereunder and for all costs and expenses of its employees, to include but
     not be limited to employee benefits.

26.3 The failure of either party to insist upon or enforce strict conformance by
     the other party of any provision of this Agreement or to exercise any right
     under this Agreement shall not be construed as a waiver or relinquishment
     of such party's right unless made in writing and shall not constitute any
     subsequent waiver or relinquishment.

26.4 To be valid, amendments or modifications to the Agreement must be in
     writing and signed by an authorized representative of each party. Any
     verbal agreements, discussions, and understandings, expressed or implied,
     shall not constitute amendments to this Agreement.

26.5 If any provision of this Agreement is finally held by a court of competent
     jurisdiction to be illegal or unenforceable, then such provision shall be
     deemed adjusted to conform to the applicable requirements, to the extent
     reasonably possible, and the adjusted provision, if any, shall have the
     same effect as if originally included herein. In any event, the legality,
     validity, and enforceability of the remaining provisions of this Agreement
     shall not be affected or impaired.

26.6 The provisions of this Agreement which by their nature survive termination
     or expiration of the Agreement, including but not limited to the provisions
     of Section 1 (Definitions), Subsection 3.6 of Section 3 (Term and
     Termination), Section 4 (Intellectual Property Rights), Subsection 5.2 of
     Section 5 (Documentation), Subsection 6.2, 6.3, and 6.4 of Section 6 (Price
     and Payment), Section11 (Acceptance), Section 12 (Warranty), Subsections
     13.1, 13.2 and 13.3 of Section 13 (Product Support), Subsection 17.2 of
     Section 17 (Product Withdrawals), Section 22 (Limitation of Liability),
     Section 23 (Confidential Information), Section 24 (Infringement), together
     with Section 26 (Miscellaneous), Section 27 (Entire Agreement), Exhibit A
     (Product/Repair Pricing, Lead-time, Upside, Cancellation and Rescheduling
     Terms, Exhibit B EMC On-Order Parts, Exhibit E (Technical Support), Exhibit
     F (RMA Procedure), Exhibit G (Product Repair), and Exhibit H (Software
     License) of this Agreement shall survive the termination or expiration of
     this Agreement. Outstanding purchase orders accepted by NEI shall survive
     the expiration or termination of this Agreement by EMC for cause, unless
     EMC cancels the purchase orders Termination of this Agreement for cause by
     NEI under Section 3.3, or 3.4 shall act to also terminate any outstanding
     purchase orders, unless otherwise specified in writing by NEI.

26.7 If the performance hereof, or any obligation hereunder is prevented,
     restricted or interfered with by reason of fire or other casualty or
     accident; strikes or labor disputes; war or other violence; any law, order,
     proclamation, regulation, ordinance, demand or requirement of any
     governmental agency; or any other act or condition whatsoever beyond the
     reasonable control of the parties hereto, excluding weather conditions
     other than catastrophic weather conditions and excluding events which could
     reasonably have been avoided by the exercise of reasonable prudence, the
     party whose performance is so affected, upon giving prompt notice to the
     other party, shall be excused from such performance to the extent of such
     prevention, restriction or interference; provided,

                                       17

<PAGE>

     however, that the party so affected shall take all reasonable steps to
     avoid or remove such causes of non-performance and shall immediately
     continue performance hereunder whenever such causes are removed. If the
     delay lasts for sixty (60) or more days from the original date of
     performance, the party receiving notice of the delay shall have the right
     to terminate the performance of the affected obligation and/or the
     Agreement.

26.8 Neither party may assign any rights hereunder without the prior written
     consent of the other party, which consent shall not be unreasonably
     withheld. Any assignment of rights shall not work as a novation of
     obligations hereunder without written agreement. Any attempt to assign any
     rights, duties or obligations hereunder without the other party's written
     consent will be void.

26.9 If either party commences litigation to enforce any provision of this
     Agreement, the prevailing party shall be entitled to seek to recover
     reasonable attorneys' fees and expenses of litigation, including fees and
     expenses of any appeal.

26.10 Unless otherwise expressly provided for, all notices, requests, demands,
     consents or other communications required or pertaining to this Agreement
     must be in writing and must be delivered personally or sent by certified or
     registered mail (postage prepaid and return receipt requested) to the other
     party at the address set forth below, or to any other address given by
     either party to the other party in writing:

NEI: Network Engines, Inc
         25 Dan Road
         Canton, MA 02021
         Attn: Chief Financial Officer
         CC: Chief Counsel

EMC: EMC Corporation
         171 South Street
         Hopkinton, MA  01738
         Attn: VP Supply Base Management Commercial
         CC: Chief Counsel

        In case of mailing, the effective date of delivery of any notice,
        demand, or consent shall be considered to be five (5) Business Days
        after proper mailing.

26.11 Technical Contacts -With respect to all other communications between the
     parties, the principal contacts are noted below. This information may be
     changed by written notice between the parties and without the necessity of
     amending this Agreement:

NEI:      Network Engines, Inc.
              25 Dan Road
              Canton, MA 02021
              Attn: Director of Engineering

EMC:      Supply Base Manager, Third-Party Products
          -----------------------------------------
              EMC CORPORATION
              ---------------
              171 South Street
              ----------------
              Hopkinton, MA 01748
              -------------------

26.12 The section and paragraph headings of this Agreement are intended as a
     convenience only, and shall not affect the interpretation of its
     provisions.

                                       18

<PAGE>

26.13 The parties agree that the terms and conditions of this Agreement shall
     prevail, notwithstanding the contrary or additional terms in any purchase
     order, sales acknowledgment, confirmation or any other document issued by
     either party effecting the purchase and/or sale of Product(s).

26.14 Neither party will export, re-export or resell any Product(s) or technical
     data without first complying with all applicable export laws, orders and
     regulations and obtaining all necessary governmental permits, licenses and
     clearances.

26.15 Nothing in this Agreement shall be construed as preventing EMC from
     developing, acquiring, marketing, selling, supporting or maintaining
     products similar to or competitive with Product, or from entering into
     agreements with or providing specifications (but not Product
     Specifications, as referenced herein) for competitors of NEI, provided that
     in so doing, EMC does not breach its obligations under this Agreement,
     including, without limitation, Section 23

27.0 ENTIRE AGREEMENT
     ----------------

The following Exhibits are part of this agreement and are incorporated herein by
this reference:

     Exhibit A Product/Repair Pricing, Lead-Time, Upside, Cancellation and
     Rescheduling Terms

     Exhibit B EMC On-Order Parts

     Exhibit C Technical Purchase Specification

     Exhibit D NEI Quality Plan

     Exhibit E Technical Support

     Exhibit F RMA Procedure

     Exhibit G Product Repair

     Exhibit H Software License

     Exhibit I Indemnity Country List

     Exhibit J EMC Logistics Partners

This Agreement, including all Exhibits, constitutes the entire Agreement between
the parties and supersedes all prior or contemporaneous agreements, discussions,
and understandings between the parties, either express or implied.

IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed by
their duly authorized representatives, effective as of the date last signed
("Effective Date"),.

Network Engines, Inc.                       EMC Corporation
-------------------------------             ------------------------------------
    "NEI"                                       "EMC"

By: /s/John H. Curtis                       By: /s/William Monagle        2/5/02
    ----------------------------                --------------------------------
    (Signature)                                 (Signature)
Name: John H. Curtis                        Name: William Monagle
      (Please Print or Type)                      (Please Print or Type)
Title: President & CEO                      Title: Vice President
                                                   Corporate Procurement

Date: January 30, 2002                      Date: EMC Corporation

                                       19

<PAGE>

                                    EXHIBIT A

      Product Pricing, Lead-time, Upside, Cancellation and Reschedule Terms

Product and Repair Pricing
----------------------------------------------------------------------------
EMC Part #      NEI Part #   Description           Maximum Lead   Unit Price
                                                   Time
----------------------------------------------------------------------------
[**]            [**]         Storage Server Node   [**] weeks     $[**]
----------------------------------------------------------------------------
[**]                         Disk Sled Assembly    [**] weeks     $[**]
----------------------------------------------------------------------------

Lead-time: EMC shall, during the first week of every month, provide NEI with a
---------
rolling, [**] -day Purchase Order, cancelable and reschedulable only as provided
below. The lead-time for all Product, based on a rolling [**] day Purchase
Order, will vary between [**] calendar days or [**] weeks, and [**] days or [**]
weeks. Maximum lead-time for all Product covered under this agreement will be
[**] calendar days or [**] weeks. In some cases, EMC may request delivery sooner
than the lead-time stated above. In such cases, NEI will make reasonable
commercial efforts to support these inside lead-time requests.

EMC On-order Parts: EMC shall, on the first week of every month issue a rolling
------------------
[**]-week forecast, by estimated delivery date, of its product requirements. NEI
will support the lead-time and upside requirements by identifying and procuring
parts using the individual component lead times as listed in Exhibit B and EMC
requested delivery dates as the key trigger points on which to base that
procurement, and then adding [**] to account for manufacturing time. EMC's
liability for NEI inventory shall be limited to On-Order Parts as defined in
Exhibit B and the liability defined in this Exhibit A. NEI shall be solely
responsible for the inventory of all other parts, and for that portion of the
On-Order Parts inventory that (1) exceeds the forecast, purchase order and
upside requirements established in this Agreement or (2) that are ordered in
advance of the time necessary to support the forecast, purchase order and upside
requirements established in this Agreement, unless EMC provides written
authorization to procure additional requirements beyond that (i.e. last time
buy).

Quarterly, (or more frequently, if EMC requests), NEI and EMC will review and
audit EMC On-Order Parts in NEI's inventory and on NEI's backlog. EMC may
request adjustments based on anticipated changes in consumption level of the
Product(s). Cancellation charges resulting from EMC-requested adjustments will
be the responsibility of EMC provided, as stated above, that prior
review/approval of the purchases was completed by EMC.

Upside Support: NEI agrees to manage its business with EMC so as to support EMC
--------------
requests for delivery of un-forecasted Product (upsides) as follows (assumes
calendar days):

                                       1

<PAGE>

     Request made by EMC X days
     before original PO delivery date   NEI upside commitment
     --------------------------------   ---------------------

     [**] days                          [**]
     [**] days                          [**]% above on-order quantity
     [**] days                          [**]% above on-order quantity
     [**] days                          [**] above on-order quantity

Cancellation Terms: NEI agrees to support the following cancellation terms for
------------------
EMC production Product (assumes calendar days):

     Request made by EMC X days                 EMC cancellation liability
     before original PO delivery date   (% of $ value of on order Product)
     --------------------------------   ----------------------------------

     [**] days                          Full price of finished Product, or may
                                        be rescheduled (see note below)

     [**] days                          Liability limited to cost of EMC
                                        On-Order Parts identified in Exhibit B,
                                        Sections 2.0, 3.0 and 4.0 and an
                                        additional [**]% adder to the total cost
                                        of the material kitted in preparation of
                                        supporting Product requirements for day
                                        [**] through [**]. This represents a
                                        restocking charge.

     [**] days                          Liability limited to cost of EMC
                                        On-Order Parts identified in Exhibit B,
                                        Sections 2.0, 3.0 and 4.0 .*

     *Note: In instances where business conditions mandate EMC cancellation
            of Product, NEI will take all reasonable actions to de-book,
            return reschedule or otherwise dispose of materials on backlog
            with zero or minimum liability so as to minimize liability passed
            on to EMC.

Reschedule Terms: NEI agrees to support the following reschedule terms for all
----------------
EMC production Product (assumes calendar days):

     Request made by EMC X days
     before original PO delivery date   Reschedule Allowed
     --------------------------------   ------------------

     [**] days                          [**].

     [**] days                          [**] days from original due date.

     [**] days                          [**] days from original due date.

     [**] days                          [**].

                                       2

<PAGE>

                         Exhibit B - EMC On-Order Parts
                         ------------------------------

EMC shall be liable only for the parts listed in paragraphs 2.0, 3.0 and 4.0
below. EMC's liability is limited to that quantity of Parts that NEI must order,
in accordance with the ordering lead time for such parts, in order to
manufacture and deliver Products to EMC in accordance with the delivery dates
listed in the forecast, Purchase Orders and upside requirements ("On-Order
Parts").

1.0  Definitions
     -----------

     1.1  EMC Custom Parts: Parts that are not commodity Products in the
          ----------------
          commercial market, but are manufactured solely for incorporation into
          EMC Products.

     1.2  EMC Unique Parts: Commodity parts procured solely for incorporation
          ----------------
          into EMC Products and not used on other NEI products.

     1.3  Other Parts: Parts other than those listed in 1.1 or 1.2 above that
          -----------
          are components of the Product, but which are not custom to EMC or
          unique to the Products EMC is purchasing hereunder.

2.0  EMC Custom Parts List
     ---------------------

     Item Number   Part Description   Rev   Qty Per   L/T(Bus days)   Weeks
     ----------------------------------------------------------------------
     [**]          [**]               01       1           [**]        [**]
     [**]          [**]               01       1           [**]        [**]
     [**]          [**]               01       1           [**]        [**]

3.0  EMC Unique Parts List
     ---------------------

     Item Number   Part Description   Rev   Qty Per   L/T(Bus days)   Weeks
     ----------------------------------------------------------------------
     [**]          [**]               0A       1           [**]        [**]
     [**]          [**]               0A       8           [**]        [**]
     [**]          [**]               02       1           [**]        [**]
     [**]          [**]               02       1           [**]        [**]
     [**]          [**]               02       1           [**]        [**]
     [**]          [**]               0A       1           [**]        [**]
     [**]          [**]               00       1           [**]        [**]
     [**]          [**]               0A       4           [**]        [**]
     [**]          [**]               01       2           [**]        [**]
     [**]          [**]               0A       1           [**]        [**]
     [**]          [**]               01       1           [**]        [**]

                                       1

<PAGE>

4.0  Other Parts List
     ----------------

     Item Number   Part Description   Rev   Qty Per   L/T(Bus days)   Weeks
     ---------------------------------------------------------------------
     [**]          [**]               0A    1              [**]        [**]
     [**]          [**]               0A    2              [**]        [**]
     [**]          [**]               0A    2              [**]        [**]
     [**]          [**]               0A.1  12             [**]        [**]
     [**]          [**]               0A    17             [**]        [**]
     [**]          [**]               0A    10             [**]        [**]
     [**]          [**]               0A    2              [**]        [**]
     [**]          [**]               0A    A/R            [**]        [**]
     [**]          [**]               0A    1              [**]        [**]
     [**]          [**]               0A    1              [**]        [**]
     [**]          [**]               0B.1  1              [**]        [**]
     [**]          [**]               0B.1  1              [**]        [**]
     [**]          [**]               0B    1              [**]        [**]
     [**]          [**]               0A    1              [**]        [**]
     [**]          [**]               0A    1              [**]        [**]
     [**]          [**]               0A    1              [**]        [**]
     [**]          [**]               0A    1              [**]        [**]
     [**]          [**]               0A    1              [**]        [**]
     [**]          [**]               0A    1.5            [**]        [**]
     [**]          [**]               0A    1              [**]        [**]
     [**]          [**]               0A    1              [**]        [**]
     [**]          [**]               0A    1              [**]        [**]
     [**]          [**]               00    1              [**]        [**]
     [**]          [**]               0A    1              [**]        [**]
     [**]          [**]               0A    1              [**]        [**]
     [**]          [**]               0A.1  1              [**]        [**]
     [**]          [**]               0A    1              [**]        [**]
     [**]          [**]               0A    1              [**]        [**]
     [**]          [**]               0A    1              [**]        [**]
     [**]          [**]               0A    1              [**]        [**]
     [**]          [**]               0A    4              [**]        [**]
     [**]          [**]               0A    1              [**]        [**]
     [**]          [**]               0A    1              [**]        [**]
     [**]          [**]               0A    1              [**]        [**]
     [**]          [**]               0B    1              [**]        [**]
     [**]          [**]               0E    1              [**]        [**]
     [**]          [**]               0A    1              [**]        [**]
     [**]          [**]               0A    1              [**]        [**]

                                       2

<PAGE>

                        Technical Purchase Specification
                               Disk Sled Assembly
                                    118032103
                                    Rev "E01"
                                December 19, 2001

                              [**] Systems Division
                               WESTBORO, MA 01580

                                       1

<PAGE>

                                TABLE OF CONTENTS

                                                                       CONTENTS
                                                                           PAGE

TABLE OF CONTENTS............................................................1

1.   SCOPE...................................................................3

2.   SPECIFICATION REVISION DETAILS..........................................3

3.   APPLICABLE DOCUMENTS AND ITEMS..........................................3

4.   HARDWARE DESCRIPTION....................................................4

     4.1   Disk Drives.......................................................4
     4.2   Metal Sleds.......................................................4
     4.3   Mounting Screws...................................................4

5.   SOFTWARE IMAGES, TEST PROCEDURES, & TEST REQUIREMENTS...................4

     5.1   Standard NEI Test Software, Processes, and Metrics...............44
     5.2   EMC [**] Software................................................44
     5.3   EMC [**]  Software Test Process and Metrics......................44

6.   AGENCY COMPLIANCE.......................................................4

7.   SHIPPING PACKAGE REQUIREMENTS...........................................5

8.   NOTIFICATION OF DESIGN, PROCESS, OR AVL CHANGES.........................6

9.   DELIVERY REQUIREMENTS...................................................7

                                       2

<PAGE>

1.   SCOPE

     This document defines the requirements for an [**] Disk Sled Assembly
     consisting of [**]. This document and the documents referenced in this
     document collectively define the functional, electrical, mechanical,
     environmental, and reliability specifications, as well as safety agency
     approvals, which must be met by suppliers to EMC. The [**] Disk Sled
     Assembly is hereafter referred to as the "DISK SLED". Network Engines, Inc.
     is hereafter referred to as "NEI".

2.   SPECIFICATION REVISION DETAILS

<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------------
Revision Table
-------------------------------------------------------------------------------------------------------
                Revisions                                                  Emc Corporation
-------------------------------------------------------------------------------------------------------
   Date        App'd. By     ECO #    Rev    Title: [**]  Disk Sled Assembly Purchase Specification
-------------------------------------------------------------------------------------------------------
<S>               <C>                 <C>     <C>
11/28/01          [**]                E00     Initial revision
-------------------------------------------------------------------------------------------------------
12/19/01          [**]                E01     Add NEI part numbers and revisions, EMC drive part number
-------------------------------------------------------------------------------------------------------

-------------------------------------------------------------------------------------------------------

-------------------------------------------------------------------------------------------------------
</TABLE>

     NOTE: No changes or revisions to this purchased product will be allowed by
     either EMC Corporation or NEI without going through the change notification
     process detailed in Section 8 of this specification.

3.   APPLICABLE DOCUMENTS AND ITEMS

     The DISK SLED shall meet the requirements defined by the specified revision
     of following documents. In case of conflict, the order of precedence is as
     follows.

          1.   This purchase specification: 118032103, revision E01

          2.   The following corporate standards:

               108000066   Package Test Specification, revision 07

               108000143   Packaging Specification for Suppliers of EMC,
                           revision 10

               108000174   Bar Coding Requirements for Shipping Containers,
                           revision 09

               108000336   Midrange Storage Environmental Guideline, revision 08

               108000721   EMC Serial Number Labeling Requirements, revision A18

               108000495   Purchased Products: Compliance and Certification
               Requirements,

                           revision 06

     The specified revisions of the 108 specifications are included in the
     appendix of this document.

                                       3

<PAGE>

4.   HARDWARE DESCRIPTION

     The DISK SLED consists of [**]. The DISK SLEDs [**].

     In general, all NEI parts have the format www-xxxxx-yy rev zz where each w,
     x, y, or z is an alphanumeric character. Their revisions start at 0A for a
     released product and will increase to 0B, 0C, 0D, ... as new revisions are
     required.

     The NEI assembly number for the DISK SLED is [**]. The following sections
     define the exact components comprising the DISK SLED. The EMC part number
     for the assembly is [**]. NEI will label the disk sled assembly with the
     EMC part number, revision, and serial number in both bar code and human
     readable form according to the 108000721 EMC Serial Number Labeling
     Requirements Specification. These labels are not required to be visually
     accessible when the DISK SLED is installed [**].

4.1  Disk Drives

     The DISK SLED will contain [**]. NEI shall [**]. The drives will be labeled
     by Maxtor with the EMC part number, revision, and serial number. The NEI
     part number for the drives is [**].

4.2  Metal Sleds

     The NEI part number for the metal sled is [**]. This is [**].

4.3  Mounting Screws

     The disk and the sled are [**]. The NEI part number for the [**].

5.   SOFTWARE IMAGES, TEST PROCEDURES, & TEST REQUIREMENTS

     Each DISK SLED will [**] DISK SLEDs will [**]. The [**] DISK SLEDs [**],
     NEI will [**] the DISK SLEDs [**], NEI will [**] from EMC and will[**].

5.1  Standard NEI Test Software, Processes, and Metrics

     NEI will [**] with EMC. This document will refer to [**]. There will be
     [**]. The NEI part number [**].

5.2  EMC [**] Software

     Each DISK SLED [**]. The EMC [**].

5.3  EMC [**] Software Test Process and Metrics

     The [**] DISK SLED should [**] NEI will [**] the DISK SLEDs [**].

6.   AGENCY COMPLIANCE
     Since the DISK SLED is [**].

                                       4

<PAGE>

7.   SHIPPING PACKAGE REQUIREMENTS

     The basic shipping package will be based on an NEI-designed single disk
     shipping box [**]. This package will be sent as an individual unit in this
     package or multiples of these packages may be aggregated in boxes or on
     pallets as needed. The rest of this section lists the EMC requirements for
     this shipping package. It is Network Engines responsibility to satisfy all
     of these items.

     1.   The DISK SLED shipping package shall not be marked [**]. The DISK SLED
          shipping package will [**].

     2.   The DISK SLED shipping package shall be marked with the following:

     .    Shipping label(s) [**].
     .    [**] shipping label(s).

     3.   NEI is responsible for performing all shipping and container
          performance testing on the single DISK SLED shipping package. The
          following requirements pertain when packaged in the vendor's shipping
          carton. This DISK SLED [**]. These tests include but are not limited
          to:

               .    [**]
               .    [**]
               .    [**].

8.   NOTIFICATION OF DESIGN, PROCESS, OR AVL CHANGES

MANDATORY ENGINEERING CHANGES
-----------------------------
8.1  In the event that changes are required to make the Product(s) conform to
     safety/regulatory agency requirements ("Mandatory Engineering Changes"),
     NEI shall immediately implement the Mandatory Engineering Changes in new
     production of the Product(s) without charge to EMC.

8.2  NEI and EMC shall discuss and mutually agree upon one or more of the
     following remedies for implementing Mandatory Engineering Changes on
     previously delivered Product, including which party shall bear the costs of
     any such Mandatory Engineering Change, provided, however, that if the
     Products did not, or do not, conform to safety/regulatory agency
     requirements as such requirements existed on the date of delivery, all such
     changes shall be at no charge to EMC, including shipping and transportation
     costs. NEI shall use reasonable efforts to immediately implement the
     selected remedies.

     8.2.1 EMC may request an RMA number and return the affected Product(s)to
          NEI or an authorized repair facility for repair or replacement.

     8.2.2 EMC may request and NEI will ship Mandatory Engineering Change kits
          for Product(s). NEI shall provide EMC with installation instructions
          necessary to implement the Mandatory Engineering Changes at EMC's or
          EMC's customer's locations.

     8.2.3 NEI may be asked to provide on-site technical assistance at the
          appropriate location to install the Mandatory Engineering Change.

     8.2.4 EMC may request that a NEI-approved third party maintenance
          organization install the Mandatory Engineering Change kits for the
          affected Product.

                                       5

<PAGE>

8.3  NEI shall provide EMC with written notice of any Mandatory Engineering
     Changes as soon as possible after NEI knows of such change.

8.4  EMC shall have the option to cancel open purchase orders without penalty if
     the Mandatory Engineering Changes are due to the fault or negligence of NEI
     and such Changes are incompatible with or adversely affect performance of
     Product(s) purchased by EMC and such changes are not made compatible with
     the Product(s), or EMC is not provided with an acceptable remedy within
     [**] days after NEI receives notification from EMC of its intent to cancel
     its open purchase orders.

     NEI REQUESTED CHANGES

8.5  Both parties recognize that there may be optional changes proposed by NEI
     affecting form, fit or function which are not Mandatory Engineering Changes
     ("Optional Engineering Changes"). Optional Engineering Changes may also
     include changes in processes or materials. NEI shall provide EMC copies of
     all Engineering Change Notices affecting Form, Fit, Function (as defined
     below), active components, or reliability as soon as practically possible
     prior to being implemented NEI will also provide copies of Process Change
     Notification forms related to mutually agreed upon EMC specific
     manufacturing or test processes that would affect the following as soon as
     practical prior to being implemented:

     8.5.1.1 Form: Defined as a change in the dimensions or the external
          appearance of the Product(s).
     8.5.1.2 Fit: Defined as a change that affects the physical
          interchangeability of the Product(s)or a field replaceable unit
          ("FRU") of the Product(s).
     8.5.1.3 Function: Defined as a change that introduces a capability not
          available in the previous connectivity interface, software, firmware,
          or operator interface or affects the interchangeability of the FRUs
          within the Product(s).

8.6  The notice required in sub-Section 105.1, above, shall include a written
     description of the proposed change, including the reason for the change and
     the expected effect of the change on the Product(s), including its price.
     NEI will send such change proposals to EMC's designated engineer, via mail,
     Email, or fax, as agreed between the parties. NEI's notice shall also
     contain (i) an evaluation as to whether or not the changes, if accepted by
     EMC, would be likely to require EMC to re-qualify the Product(s), and (ii)
     a recommendation for or against such re-qualification.

8.7  If the Optional Engineering Changes to Form, Fit or Function of the
     Product(s) proposed by NEI in EMC's sole opinion necessitate evaluation by
     EMC of compatibility with EMC's systems and/or specifications, NEI upon
     EMC's request, shall provide EMC with [**]of evaluation products, parts or
     designs which incorporate the proposed changes. EMC shall have the right to
     accept, reject or mutually agree to an alternate plan for NEI's proposed
     Optional Engineering Changes and will inform NEI of its approval or
     rejection of those changes in writing within [**] days from receipt of the
     evaluation products, parts or designs provided to EMC, or within [**] days
     of EMC's receipt of notice of such changes, whichever is later. Such
     approval shall not be unreasonably withheld.

8.8  If EMC rejects the Optional Engineering Changes, EMC may require NEI to
     continue supplying the unaltered Product(s)or to provide EMC with
     opportunities for a last time buy of the unaltered Product(s).

8.9  NEI will incorporate changes accepted by EMC into Product(s) on EMC's open
     purchase orders at no charge.

8.10 Unless EMC specifically rejects such changes, each version of the
     Product(s) will possess at least the same features and functions, if not
     more, than are offered by NEI in the Product(s) or similar product offered
     by NEI for the same server/host environment. NEI shall introduce all new
     non-exclusive features or functions for the Product(s) as early as the
     introduction in any other similar

                                       6

<PAGE>

     NEI products for that environment, provided, however, that any such feature
     or functions may be delayed in the event that EMC requests different or
     customized Specification for the EMC version of the Product.

8.11 Any changed Product(s) resulting from application of Sections 14, 15 and 16
     shall be considered added as Product(s) to this Agreement, and subject to
     its terms and conditions.

8.12 INCOMING QUALITY AND RELIABILITY REQUIREMENTS

     NEI shall participate [**].

9.   DELIVERY REQUIREMENTS

          Incoming DISK SLEDs shall be packaged [**].

          [**].

                                       7

<PAGE>

EXHIBIT D
                                NEI Quality Plan

1.0  INTRODUCTION
     ------------
1.1  This document is the Quality Plan for NEI and defines the quality systems
     NEI will use to ensure that they meet the quality and on-time-delivery
     expectations of EMC.

1.2  With reasonable notice, EMC shall have the right to inspect and audit any
     NEI manufacturing or administrative site that supplies goods or services.
     EMC shall have the right to review relevant documents pertaining to quality
     information, procedures, certificates of conformance, etc. affecting
     materials received.

2.0  DEFINITIONS
     -----------
2.1  Plug and Play Failure: Any failure in the first [**] hours of operation
     initiates a "Plug and Play" (PnP) process to start. This process notifies
     many individuals of the failure, including the EMC NEI Engineer for that
     item. Failures within the first [**] hours may also be referred to as a
     "Dead on Arrival" (DOA).

2.2  Reliability Failure: Any failure that occurs after the first [**] hours of
     operation at the EMC's customer's site. EMC metrics for reliability
     failures are:

     .    Annualized Failure Rate (AFR). AFR is a % of confirmed failures per
          population shipped.

     .    Annualized Rate of Return (ARR). ARR is a % of units returned (whether
          confirmed or not) per population shipped.

     .    Failure in Time (FIT). FIT is a specification of failures per billion
          hours of operation.

     .    Mean-Time-Between-Failures (MTBF). MTBF is the reciprocal of the sum
          of failure rates of all the components of a system, or it is the
          average of the time between failures in a population.

     .    Mean-Time-Between-Product-Replacements (MTBPR). MTBPR is a measurement
          of hours of operation before a product replacement (whether confirmed
          or not).

2.3  Defects per Million (DPM): DPM is a quality metric used to measure the
     rejection rate at the EMC factory. "DPM" is represented in terms of # units
     bad in a population of 1 million devices. The "defects" used in the
     calculation includes any and all functional and non-functional failures
     (incorrect labels, missing jumpers, etc.) that do not meet the Product
     Specifications in Exhibit C.

2.4  Serious Failure(s): Serious failures are defined as failures where EMC's
     customer is experiencing system instability to the point where customer
     data or daily business operations are disrupted or at risk in the event of
     additional failures.

2.5  Critical Failure(s): Critical failures are defined as failures where EMC's
     customer's systems or business operations are down or non-functional, or
     performance has deteriorated to the point that the customer's business is
     significantly impacted, including but not limited to problems that affect
     data integrity, safety, or that create other significant operation impacts.

2.6  Purge: Discrepancy issue with a particular lot or date code of the
     Product(s) that requires EMC to remove and segregate the Product(s) in
     EMC's factory and service centers.

2.7  ORT: Ongoing Reliability Testing.

2.8  HALT: Highly Accelerated Life Testing.

3.0  PERFORMANCE REQUIREMENTS
     ------------------------

                                       1

<PAGE>

3.1  The quality numbers stated in this section are requirements. NEI will work
     with EMC to define and work toward these requirements. EMC will measure NEI
     during the quarterly NEI performance reviews using these quality numbers.

3.2  EMC Factory Performance: NEI agrees to worst-case target DPM levels as
     -----------------------
     follows:

     .    Goal of [**]K DPM for the first [**]K production Product; NEI
          commitment of [**]K DPM.

     .    Goal of [**]K DPM for [**]to [**]K production Product; NEI commitment
          of [**]K DPM.

     .    Goal of [**]K DPM for >[**]K production Product; NEI commitment of
          [**]K DPM.

     If DPM levels committed to by NEI are not achieved, NEI will provide an
     improvement plan and schedule within [**] weeks of EMC's request for such
     information and will take all reasonable steps to reduce DPM to below the
     levels committed to [**].

3.3  EMC Field Reliability: NEI agrees to the following field reliability goals:
     ---------------------
..    Plug and Play (PnP) of [**] %. See Note 1 for details.

..    AFR = [**] %. See Note 2 for details.

..    FIT = [**] failures per billion hours of operation. See Note 2 for details.

     Note 1: The Plug and Play metric is monitored monthly so to allow for real
     time visibility to issues, but the reliability goal will be measured
     against a rolling [**] average so to minimize statistically insignificant
     sample sizes.

     Note 2: The AFR and FIT goals are based on the [**] calculations provided
     by Network Engines. The metrics assume a [**] degree assumed temperature.
     This temperature was agreed upon by EMC and NEI.

     Should any of these field reliability metric be exceeded by [**]x or
     greater, NEI agrees to meet with EMC on an expedited basis to agree on and
     implement a plan to remedy the situation as soon as possible. Such plan may
     include some or all of the following provision, or other provisions as the
     parties may agree:

     [**] all affected material.

     [**] all affected material in accordance with Exhibit G.

     Provide other [**] actions including, but not limited to:

          .    [**] Product.

          .    [**].

          .    [**] Product supplied to EMC.

                                       2

<PAGE>

4.0  TECHNICAL RESPONSIVENESS/SUPPORT
     --------------------------------
4.1  Routine Questions and Issues: NEI will provide same day acknowledgment, by
     electronic mail ("email"), facsimile ("fax") or other method of
     communication agreed to by the parties, of all EMC requests for assistance
     with Routine Questions and Issues, including but not limited to questions
     regarding Product(s) service and support. EMC shall have access to
     developers, order fulfillment personnel, quality and/or technical personnel
     to assist EMC. NEI shall use best efforts to respond to EMC's requests for
     assistance within [**] Business Days of receipt of the request.

4.2  Failure Analysis (F/A): NEI shall perform failure analysis on all failed
     Product(s) returned to NEI. Failure analysis will be a cooperative effort
     between NEI and EMC to determine the root cause of the failure. Failure
     replication and determination of source of failure must be completed within
     [**] weeks of receipt of Product. If failure analysis is required at a NEI
     vendor site, then NEI will be responsible for managing their sub-vendors
     analysis in a timely fashion. Once failure analysis has been completed, NEI
     will fax or e-mail a failure analysis report to the EMC NEI Engineer
     designated by EMC. This report shall include, at a minimum, the Product(s)
     serial number, failure cause, containment plans, and corrective action that
     NEI will take to prevent further occurrences of the failure. At EMC's
     request, the parties will meet to review failure analysis reports provided
     under this sub-Section.

4.3  Quality Issues: Quality issues must be responded to by NEI within [**]
     after being notified that such an issue exists. NEI will completely close
     the quality issue with effective corrective action that will prevent a
     repeat failure. This is expected to occur within [**] days, depending on
     the nature of the issue. Quality issues identified at NEI's contract
     manufacture site should be brought to EMC's attention in a timely fashion.

4.4  Critical Failures: Critical Failures shall be considered to be highest
     priority and shall cause immediate allocation of all necessary NEI
     resources to expeditiously develop and implement effective containment and
     resolution plans in conjunction with EMC, until problem resolution. NEI's
     commitment of resources shall include but not be limited to committing NEI
     personnel to work evenings and weekends or if necessary, to send such
     personnel to EMC's site.

4.5  EMC requires that communications be in writing or electronic mail, if
     requested.

5.0  GENERAL PARTNERSHIP REQUIREMENTS
     --------------------------------
5.1  NEI will:

     5.1.1 Provide EMC with regular updates to Product(s) futures/roadmaps.

     5.1.2 Participate in Concurrent Engineering design reviews.

     5.1.3 Participate in quarterly performance reviews and annual on-site
          audits.

     5.1.4 Have monthly quality and reliability improvement plans and share
          those periodically with EMC.

     5.1.5 Obtain and maintain ISO registration.

     5.1.6 Have pro-active problem notification and resolution process for
          problems with the potential to adversely effect delivery, quality or
          price. This includes any stop ships or production holds that could
          impact shipments or quality.

     5.1.7 Maintain repair process for [**] years after Product(s) withdrawal.

5.2  EMC and NEI will each provide the other with the names and telephone
     numbers of direct contacts. These lists will be updated as necessary.

                                       3

<PAGE>

6.0   KEY PROCESSES
     --------------
     6.1 Proper safeguards must be in place to counter the possibility of ESD
     damage occurring at all points in the process, including but not limited to
     receiving, inspection, stocking, assembling, and shipping of components and
     assemblies. Refer to [**] for ESD control and damage prevention methods.

     6.2 NEI must utilize appropriate statistical techniques for all key
     processes.

7.0  QUALITY DATA PROVIDED
     ---------------------
     Each party shall provide the other via e-mail with the information
     summarized in the table below.

--------------------------------------------------------------------------------
Metric                       Owner               Frequency
--------------------------------------------------------------------------------
[**]                         EMC CQ              Monthly
--------------------------------------------------------------------------------
[**]                         EMC CQ              Monthly
--------------------------------------------------------------------------------
[**]                         EMC CQ or SBM       Weekly or Monthly (TBD)
--------------------------------------------------------------------------------
[**]                         NEI Quality Rep     Weekly or Monthly (TBD)
--------------------------------------------------------------------------------
[**]                         NEI Quality Rep     Weekly or Monthly (TBD)
--------------------------------------------------------------------------------
[**]                         EMC CQ or SBM,      Monthly
                             NEI Quality Rep
--------------------------------------------------------------------------------

8.0  CORRECTIVE ACTION PROCESS
     -------------------------

8.1  All EMC factory and field returns shall be resolved to root cause. These
     issues will be tracked by the EMC NEI Engineer and communicated back to
     NEI.

8.2  EMC will make best efforts to ensure that the defective parts are returned
     quickly to NEI for failure analysis. NEI shall ensure that failure analysis
     is done on defective parts received from EMC as described in sub-Section
     4.2, above.

8.3  Upon determining the root cause of the failure, NEI shall establish a
     corrective action plan, with EMC's assistance if requested, to ensure that
     the Product(s) defect is removed and that root cause corrective action will
     be implemented. EMC will assist NEI with tracking all open failures and
     will work with NEI to ensure that the proper repair priority is set.

8.4  If NEI encounters a No-Trouble-Found ("NTF") on a Product(s) sent from EMC,
     they will arrange for the Product(s) to be sent back for re-verification.

                                       4

<PAGE>

8.5 When EMC sends Products under warranty to NEI, NEI will [**] for such
Product(s). The parties shall reasonably agree on a procedure to administer the
warranty returns process.

9.0  REPAIR PROCESS
     --------------
     All field returned Product(s) that are upgraded and/or repaired per
     standard process shall be reassembled, tested and packaged per the
     requirements for new Product. All final test and inspection required for
     new Product(s) shall be performed on field return Product(s) prior to its
     return to EMC.

10.0 RELIABILITY ASSURANCE
     ---------------------
     NEI shall implement a method used to monitor the reliability of the
     Product. NEI will provide EMC with an outline of how that monitoring and
     corrective action process works and a plan of how the process will be
     implemented.

11.0 OBJECTIVES OF ONGOING RELIABILITY TESTING
     -----------------------------------------
11.1 The primary reason for the existence of Ongoing Reliability Testing ("ORT")
     is to provide data to support the following tasks:

     11.1.1 Provide an early warning of field reliability problems.

     11.1.2 Measure the reliability of components at a FRU level on a continuous
          basis.

     11.1.3 Monitor the reliability change over time.

     11.1.4 Provide a controlled environment for monitoring the effects of
          process and material changes.

     11.1.5 Measure any infant mortality that may be in the Product.

12.0 HALT STRESS TESTING
     -------------------

12.1 Any new Product(s) introductions or key changes to a sub-assembly shall
     require [**] a quantity of units to be defined, [**]. NEI & EMC will
     utilize this information [**]. NEI shall conduct a design review after
     completion of the tests.

12.2 Stress testing shall include [**].

                                       5

<PAGE>

                                    EXHIBIT E

                                Technical Support

1.0  SUPPORT LEVEL
     -------------
1.1  EMC will provide all first-call technical support to its customers. NEI's
     technical support group will provide no services directly to EMC's
     customers, except as described herein. All technical support, as described
     in Sections 1 through 5 of this Exhibit, and Product Support under this
     Agreement will be provided at no charge to EMC, unless specified otherwise.

1.2  EMC shall ensure that its field personnel are trained in the installation,
     setup, and operational issues involving the Product. The NEI technical
     support group will provide technical support to EMC's trained engineering
     staff as needed to resolve installation, setup and operational issues
     involving the Product.

1.3  NEI will provide engineering level support to EMC's engineering staff as
     needed to isolate problem cause, make bug fixes to NEI supplied code, and
     produce the object code required by EMC to support and update the
     Product(s).

1.4  NEI technical support will be available via telephone during normal working
     days between the hours of 8:00 AM and 5:00 PM, Eastern Standard Time,
     exclusive of NEI observed holidays.

1.5  In the event that NEI makes available Technical information such as
     "Technical Tips" on the Product(s), EMC shall have the right to reproduce
     such technical information solely for distribution internally to members of
     EMC's technical support group.

2.0  PROBLEM ESCALATION
     ------------------
2.1  When the NEI technical support group determines that it is unable to
     resolve the problem with its own resources, it will escalate the problem.

2.2  In those cases where EMC requires on-site assistance to install, setup,
     resolve operational issues or obtain necessary diagnostic information in
     order to solve a problem, NEI will provide the services of a field
     applications engineer or a product development engineer, as determined by
     NEI, for that purpose. If it is determined that the cause of the problem is
     not due to a defect in the NEI supplied Product, EMC will reimburse NEI for
     time and materials at NEI's then standard rate plus reasonable expenses for
     transportation, meals and lodging.

2.3  If the NEI technical support group determines that the problem may be due
     to a defect in the NEI supplied Product, the problem will be escalated to
     NEI engineering and given a priority response.

3.0  TECHNICAL CONTACTS
     ------------------
3.1  NEI and EMC will establish contacts to report problems, track status,
     exchange technical information, track build requirements, make bug fixes
     and coordinate the transfer of software files to and from a customer
     account on an NEI Support website.

3.2  For NEI

     3.2.1 Technical Support Administrator. NEI will establish the Technical
          Support Administrator as the central contact point for receiving
          written problem reports and sending problem resolution status via
          Email or FAX. All verbal contacts with Technical Support should be
          made via supplied telephone numbers.

     3.2.2 Development Engineering. NEI will assign Development Engineers as
          required to resolve all EMC escalated issues.

3.3   For EMC

                                       1

<PAGE>

     3.3.1 Problem Administrator. EMC will establish one person as the
          counterpart to the NEI Technical Support Administrator to send problem
          reports and receive problem status.

     3.3.2 Engineering. EMC will designate specific members of their engineering
          staff who are authorized to have engineering level contact with the
          designated NEI Engineer.

4.0   SOFTWARE MAINTENANCE RELEASES
     ------------------------------
4.1  As part of the support program, NEI will provide production quality
     software maintenance releases [**]. Maintenance releases will contain fixes
     to known problems as well as NEI defined feature additions and
     enhancements.

4.2  Maintenance releases will be derived by integrating the latest released
     version of EMC's software and a specified version of NEI standard server
     software.

4.3  The standard versions on which maintenance releases may be chosen at EMC's
     discretion. NEI will give EMC at least [**] days advance notice of upcoming
     standard releases, as well as offer EMC beta versions of all NEI standard
     releases should they be available.

4.4  Maintenance releases will typically be delivered to EMC for quality
     assurance ("QA") testing at about the time the NEI standard version is
     production released, but no less than [**] months after EMC's request.
     Maintenance releases will be available for access by EMC in a secured
     account on the NEI web Server.

4.5  NEI will provide basic unit test of all code supplied to EMC, however, EMC
     is responsible for QA testing of their code release.

                                       2

<PAGE>

                                    EXHIBIT F

                                  RMA Procedure

1.0  When defective Product(s) must be returned to NEI for repair or
     replacement, EMC shall contact NEI to obtain an RMA number. EMC shall
     submit the information required on NEI's return material authorization
     ("RMA") form and return the unit for repair or replacement.

2.0  Upon receipt of the completed RMA information, NEI will verify the warranty
     status of each item noted. If all items noted are under warranty, NEI will
     Email or fax an RMA number to EMC within one Business Day of EMC's request.
     If any of the products are found to be out-of-warranty, the RMA information
     with repair charges noted will be returned to EMC with the request for a
     purchase order to cover the repair charges. Upon receipt of the purchase
     order, NEI will Email or fax an RMA number to EMC within one Business Day
     of EMC's request. Blanket purchase orders for out of warranty repairs may
     be used as agreed between the parties.

3.0  Upon receipt of the RMA number, EMC shall package the defective Product(s)
     and ship it to NEI freight prepaid by EMC with the RMA number clearly
     marked on the outside of the box. NEI will not accept any RMA Product(s)
     shipped freight collect or with pending import fees and any such shipments
     will be returned to EMC at EMC's expense.

4.0  If the returned Product(s) is under warranty, NEI shall provide the repairs
     or a replacement unit to EMC at no charge.

5.0  If the returned Product(s) is not under warranty and is determined by NEI,
     in its sole judgment, not to be repairable, EMC will be notified of such
     and given the option to have the unit scrapped (either returned to EMC or
     scrapped by NEI).

6.0  If the returned Product(s) is under warranty, but NEI determines that the
     warranty was voided, EMC will be notified of such and given the option to
     have the Product repaired at the agreed out-of-warranty repair cost. If NEI
     determines that the Product(s) can not be repaired, EMC will be notified
     and given the opportunity to have the Product(s) scrapped by NEI or
     returned to EMC.

7.0  NEI shall ship to EMC or to a location, within the continental United
     States, designated by EMC, freight prepaid by NEI, the repaired Product(s)
     or a replacement Product(s) within [**] Business Days from the date the
     Product(s) is received at NEI.

                                       1

<PAGE>

                                    EXHIBIT G

This Exhibit sets forth the terms and conditions which govern the repair of the
Product(s). Notwithstanding anything that may be construed to the contrary, EMC
shall not have an obligation to purchase any Product repair from NEI under the
Agreement.

1.0  REPAIR PROCESS AND CYCLE TIME
     -----------------------------
1.1  All field returned Product(s) shall be /or repaired per standard process
     and then reassembled, tested and packaged per the requirements for new
     Product. All final test and inspection required for new Product(s) shall be
     performed on field return Product(s) prior to its return to EMC. NEI shall
     provide a maximum of [**] day standard cycle time on repair Product. In the
     event that repair of a Product(s) is not completed within [**] days and the
     returned product is a warranty claim, except for reasons pursuant to
     Section 26.7 of the Agreement, [**].

2.0  PRODUCT SUPPORT AND PRODUCT SUPPORT DURATION
     --------------------------------------------
2.1  At EMC's request, NEI shall provide the Product(s) support described in
     sub-Section 2.2, below. NEI shall provide Product(s) support during the
     term of the Agreement and for a period of not less than [**] years
     following withdrawal of a Product(s) as described in Section 17.0 of this
     Agreement. Charges for out of warranty Product repair are to be determined.

2.2  Product support shall include, but not be limited to Product:
     [**]

3.0  SCRAP
     -----
3.1  NEI shall make best efforts to repair all Product(s) per EMC's
     specifications in Exhibit C.

3.2  Once a Product(s) has been returned [**] for repair of verified hardware
     problems, NEI shall submit a scrap request to EMC's NEI Engineer for
     review and authorization. NEI's requests for scrap authorization shall
     include the following information:

     3.2.1 Product's part and serial numbers.

     3.2.2 A documented history of remedial processes performed on Product.

     3.2.3 Product's failure mode or quality conformance issue.

3.3  EMC shall provide a timely response to NEI's scrap requests.

3.4  NEI may be required to return scrapped Product(s) to EMC for verification
     and analysis at EMC's expense. EMC shall notify NEI of this requirement at
     the time of Product's scrap authorization.

3.5  Scrap costs [**].

                                       1

<PAGE>

                                    Exhibit H

                             Software License Terms

1.0  DEFINITION
     ----------

1.1  Licensed Program(s): Means for each item of software programming which is
     provided in conjunction with a Product, or is itself identified as a
     Product on Exhibit A, (i) the latest release being generally marketed at
     the time of shipment of the machine readable object code and all related
     documentation normally supplied therewith, and (ii) all changes thereto and
     subsequent releases thereof which NEI is obligated to provide under the
     terms of this Agreement.

2.0  GRANT OF LICENSE AND RIGHT TO USE AND REMARKET
     ----------------------------------------------

2.1  Evaluation License - Upon request, NEI shall provide to EMC, at no charge,
     one (1) evaluation copy of the Licensed Program(s).. With regard thereto,
     NEI grants EMC a nonexclusive, nontransferable right and license to use
     such solely for purposes of, testing, and evaluating to determine
     conformance to the applicable requirements.

2.2  Sublicensing of Licensed Program - NEI hereby grants to EMC, on a
     nonexclusive, nontransferable, irrevocable (except as expressly provided
     herein) basis, the right and license to obtain Licensed Program(s) from NEI
     for the purpose of providing such to the customers under the terms of the
     break-the-seal type license agreement packaged with the Licensed Program,
     if any, or in the absence of such break-the-seal license agreement, under
     the same licensing provisions as used by EMC to license its own programs of
     a similar nature.

2.3  Additional Authorizations - Provided EMC is in compliance with the material
     provisions of the Agreement, NEI shall not invoke, at law or in equity, any
     intellectual property or proprietary right, no matter when acquired, in
     order to interfere with the exercise of any right or the fulfillment of any
     obligation set forth in the Agreement, or to collect any moneys in excess
     of the fees set forth in the Agreement.

2.4  General - EMC acknowledges NEI's representation that Licensed Program
     involves valuable copyright, trade secrets and other intellectual property
     and/or proprietary rights of NEI. No title to or ownership thereof is
     transferred to EMC hereunder. EMC shall not be responsible for any
     violation of NEI's intellectual property and/or proprietary rights by any
     entity other than EMC or its subcontractors. EMC will promptly notify NEI
     if EMC becomes aware of any such violation and will reasonably cooperate
     with NEI in the protection or enforcement of NEI's rights in Licensed
     Program. EMC shall have no obligation to commence any proceedings with
     regard to such violation. EMC and NEI hereby agree that the rights and
     licenses granted to EMC hereunder shall be deemed made and effective as of
     the effective date of the Agreement.

2.5  Restrictions - Unless otherwise specifically agreed in writing, EMC shall
     not disassemble or reverse compile Licensed Program. EMC shall make no use
     of Licensed Program except as permitted hereunder and shall treat and
     protect such with same degree of care as used by EMC with regard to its own
     materials of a similar nature and importance, and no less than reasonable
     care. EMC shall not remove or alter any copyright or other proprietary
     notices affixed to or embedded in Licensed Program supplied to EMC by NEI,
     and shall include such in all copies made by EMC. EMC shall have no
     obligation to determine the appropriateness of such notices.

3.   LICENSED PROGRAM WARRANTY
     -------------------------

                                       1

<PAGE>

     The following warranty is in addition to any other warranty set forth in
     the agreement and shall control in case of conflict with any such other
     warranty that pertains to Licensed Program(s).

3.1  For each Licensed Program shipped by NEI with its own "break-the-seal" type
     of license, NEI shall provide warranty service directly to EMC and/or or
     the licensee/customer, if any, in the manner specified in such license
     agreement

3.2  For each Licensed Program shipped by NEI without its own "break-the-seal"
     type of license, NEI warrants to EMC and the customer, if any, that, the
     Licensed Program shall, from the date of such shipment until [**] calendar
     days after successful installation, operate in accordance with its user
     documentation, published specifications and any other requirements set
     forth in this Agreement.

3.3  For each Licensed Program shipped by NEI, NEI warrants to EMC and the
     customer if any, that the Licensed Program shall be Year 2000 Compliant.

3.4  If EMC reports a material deviation from the above warranties within the
     applicable warranty period, and NEI is unable to correct or offer an
     alternative acceptable to EMC or the customer, if any, within [**] calendar
     days after receipt of the report, EMC shall [**].

3.5  NEI warrants that it shall replace [**], within [**] calendar days after
     receipt of notice, any Licensed Program media or documentation shipped by
     NEI that is or becomes defective within [**] calendar days after successful
     installation, provided the defect is not due to accident, abuse or
     misapplication after arrival.

                                       2

<PAGE>

                                    Exhibit I

                             Indemnity Country List

Argentina
Australia
Austria
Bahrain
Belgium
Belize
Bermuda
Bolivia
Bosnia and Herzegovina
Brazil
British Virgin Islands
Brunei
Bulgaria
Canada
Cayman Islands
Chile
China, People's Republic of
Colombia
Costa Rica
Cyprus
Czech Republic
Denmark
Dominican Republic
Ecuador
Egypt
El Salvador
Estonia
Falkland Island
Finland
France
Georgia
Germany, Federal Republic
Gibraltar
Greece
Grenada
Guatemala
Guernsey
Guinea
Holy See
Hong Kong
Hungary
Iceland
India
Indonesia
Iran

                                       1

<PAGE>

Ireland
Isle of Man
Israel
Italy
Jamaica
Japan
Jersey
Jordan
Kazakhstan
Korea, Republic of
Kuwait
Kyrgyzstan
Latvia
Lebanon
Liechtenstein
Lithuania
Luxembourg
Macedonia
Malaysia
Malta and Gozo
Mexico
Monaco
Montserrat
Morocco
Netherlands
Netherlands Antilles (and Aruba)
New Zealand
Nicaragua
Norway
Pakistan
Panama
Paraguay
Peru
Philippines
Poland
Portugal
Romania
Russian Federation
Saudi Arabia
Singapore
Slovakia
Slovenia
South Africa, Republic of
Spain
Sweden
Switzerland
Taiwan, Republic of China

                                        2

<PAGE>

Thailand
Tunisia
Turkey
Ukraine
United Arab Emirates
United Kingdom
United States of America
Uruguay
Venezuela
Western Samoa
Yugoslavia

                                        3

<PAGE>

                                    Exhibit J

                             EMC Logistics Partners

To be supplied by EMC, as appropriate

                                       1

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