Document:

Repair Service Agreement

 Exhibit 10(ag) 
  
 REPAIR SERVICE AGREEMENT 
  
 THIS REPAIR SERVICE AGREEMENT is entered into as of August 4, 2004, (“Effective Date”) by and between Silicon Graphics, Inc., a Delaware corporation with
principal offices at 1500 Crittenden Lane., Mountain View, CA 94043 (“SGI”), and Pinnacle Data Systems, Inc. (“PDSI”) an Ohio corporation with principal offices at 6600 Port Road, Groveport, Ohio 43125 U.S.A. (“Repair
Service Provider” or “RSP”). 
  
 WHEREAS, SGI is a designer,
manufacturer and seller of computer system products, and desires to purchase certain repair services from RSP, including but not limited to the diagnosis, testing, repair and/or refurbishment of the SGI products. 
  
 WHEREAS, RSP is capable of and willing to provide such repair services to SGI. 
  
 NOW, THEREFORE, the parties hereto agree as follows: 
  
 1.0 DEFINITIONS 
  
 1.1 “Agreement” means this Repair Service Agreement. 
  
 1.2 “Component Inventory” means piece part component inventory purchased
from time to time by RSP effecting repair of SGI Defective Product. This Component Inventory may be resold to SGI as excess inventory according to section 3.3. 
  

1.3 “Confidential Information” means data that concerns a party’s business plans, internal business needs, pricing, customers and customer
information, product design, testing, business processes or other information related to Repair Services that is confidential, proprietary and/or a trade secret to such party. 
  
 1.4 “Disclosing Party” is a party to this Agreement, which discloses its Confidential Information to a Receiving Party.

  
 1.5 “Down Level” means an SGI part that is not at the current
revision level. An engineering change order may be needed to bring the part to the current revision. 
  
 1.6 “Effective Date” means the date first set forth above, on which date the term of this Agreement shall commence. 
  
 1.7 “Final Inspection” means the final visual inspection and test process applied to the repaired Product by RSP.

  
 1.8 “Materials” means collectively all components, parts and
materials (including modules, subassemblies, assemblies, components, or piece parts) required to perform the Repair Services. 
  
 1.9 “Purchase Order” shall mean any written or electronically transmitted purchase order issued by SGI to RSP for Repair Services. 
  
 1.10 “Receiving Party” is a party to this Agreement, which accepts,
receives, views, or otherwise obtains Confidential Information from a Disclosing Party. 
  
 1.11 “Repaired SGI Product” shall mean SGI Product for which RSP has provided Repair Service, and which is ready to be returned to SGI. 
  
 1.12 “Repair Service” means the repair, refurbishment and/or update of SGI Product by RSP hereunder. For purposes of this
definition, “repair and/or refurbish” means the restoration of a SGI Product to its original (or updated by SGI engineering change order, if agreed by the parties) specification and functionality. Repair Service includes all testing and
inspection by RSP to verify that repaired or updated SGI Product performs in accordance with the manufacturer’s original and/or revised specifications, set forth hereto as Exhibit B. 
  
 1.13 “Representative” means a non-employee agent or consultant of SGI or RSP. 
  
 1.14 “SGI” means SGI, its subsidiaries and its affiliates. 
  
 1.15 “SGI Capital Equipment” means equipment owned by SGI and used by RSP to
repair / test the SGI Defective Product. 
  
 1.16 “SGI Component
Inventory” means existing piece part component inventory originally purchased by SGI, sold to RSP, and managed by RSP effecting repair of SGI Defective Product. This SGI Component Inventory may be resold to SGI as excess inventory according
to section 3.2. 
  

					
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 1.17 “SGI Defective Product” means a module, subassembly, assembly or the like of SGI or its suppliers
to be repaired by RSP and is considered SGI’s proprietary information that would constitute an infringement of SGI’s intellectual property rights if reproduced and/or used, made or sold without SGI’s permission 
  
 1.18 “Update” means to install engineering changes in a SGI Product to
upgrade such SGI Product to a higher engineering level. 
  
 2.0 SCOPE OF
AGREEMENT AND REPAIR SERVICE. RSP shall act as the non-exclusive Repair Service provider of all of the Repair Services, including inventory management, labor, technical expertise, personnel and facilities. RSP agrees to (i) use commercially
reasonable efforts to process every Purchase Order under this Agreement per agreed upon service levels. 
  
 3.0. OBLIGATIONS OF RSP. 
  
 3.1. Receipt, Test and Repair Service of SGI Product. Upon receipt of an SGI Defective Product from SGI, RSP shall examine and test SGI Defective Product to determine whether such SGI Defective Product is defective or Down Level. If
RSP determines that SGI Defective Product is defective or Down Level, RSP shall provide Repair Service for such SGI Defective Product and shall return the Repaired SGI Product to SGI within 30 days, if the SGI Product is ordered as part of an
accepted purchase order. 
  
 3.2. Consumption of SGI Component
Inventory. The RSP will purchase SGI Component Inventory from SGI and stock the parts in a secure and controlled environment. The RSP will use good faith efforts to consume the SGI Component Inventory first, prior to the purchase of Component
Inventory while performing repairs for SGI until all SGI Component Inventory is consumed. If the inventory cost of the SGI Component Inventory is higher than the cost basis used by RSP in quoting the repair, upon agreement and authorization from SGI
prior to repair, SGI agrees to pay the difference in the form of an increase in the Repair Service cost. 
  

	 	3.2.1	Inventory Carrying Cost. SGI agrees to pay a fee of 5% of the SGI Component Inventory value at the beginning of the program, and every 6 months thereafter on the then current
inventory balance, to cover inventory carrying costs associated with the SGI Component Inventory held at the RSP until Component Inventory is consumed. 

  

	 	3.2.2	Excess SGI Component Inventory. Six months after full transition is completed and every six months after or until SGI Component Inventory is fully consumed, RSP will do a complete
cycle count of SGI Component Inventory and analyze the usage patterns to determine the estimated demand of SGI Component Inventory in excess of 5 years. At this time, the RSP, at it sole discretion, may request that SGI purchase the amount of SGI
Component Inventory identified in excess of the 5 years projected demand. 

  

	 	3.2.3	Upon termination or expiration of this Agreement, SGI agrees to purchase the remaining balance of the SGI Component Inventory for the price the RSP paid at the beginning of this
Agreement. 

  
 3.3. Component Inventory/Material
Procurement. The RSP is authorized, based on non-availability of SGI Component Inventory (Section 3.2), to purchase all Component Inventory/Materials reasonably necessary to ensure adequate supply in support of 3 months of SGI repair orders and
forecasts in accordance with agreed upon lead-times for such Component Inventory/Material. The RSP is also authorized to purchase additional Component Inventory/Materials as required by the RSP to account for supplier minimum order requirements and
economic order quantities or as otherwise required by the RSP if 
  

					
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 the expenditure does not exceed $500 per component part number. If the purchase exceeds this amount, the
RSP must obtain written approval from SGI prior to purchase. For the avoidance of doubt, SGI acknowledges that it assumes all financial responsibility for Component Inventory/Materials ordered and purchased by the RSP in support of an SGI accepted
Purchase Order or three month’s forecast made in accordance with this agreement, and in particular that the RSP shall not accept inventory liability for Component Inventory/Materials that are purchased by the RSP in accordance with this
section. If the RSP purchases Component Inventory/Materials outside of these guidelines, they are financially responsible for any excess Component Inventory/Materials. 
  
 3.3.1 Component Inventory/Material Reporting. RSP shall perform Component Inventory/Material reporting and will
publish such reports to SGI quarterly. 
  
 3.4. Repair Service
Reports. RSP shall create and maintain a database to track SGI Product failures and repair/update data in accordance with SGI’s most current version of the Repair Data Reporting Requirements, as agreed to by both parties. RSP will provide a
report to SGI from such database electronically on a daily basis, or provide SGI access to RSP’s online reporting system. RSP will maintain the online reporting system and provide access to SGI at no cost for the later of (1) two months after
termination of this Agreement, or (2) until the end of the transition period. RSP acknowledges that SGI owns all data loaded in the database including but not limited to information regarding product failures, repairs and any updated data. Upon
termination or expiration of this Agreement, RSP will make this data available to SGI in an electronic report format. 
  
 3.5. Inventory of SGI Defective Product. 
  
 3.5.1 Management of Inventory. RSP shall maintain and manage the SGI Defective Product inventory, shall perform and submit monthly cycle counts of
such inventory, and shall perform an annual physical inventory if required thereof, the results of which SGI may audit at its discretion, at no additional charge to SGI. (Cycle count procedure is governed by Exhibit E). No separate inventory
carrying costs or handling fees will be incurred by SGI for SGI Defective Inventory held at RSP’s site. 
  
 3.5.2. Confidentiality and Security. RSP shall treat all SGI Defective Product inventory as Confidential Information, and RSP shall maintain
physical security for such inventory by maintaining documented security and procedures to safeguard against any unauthorized access, theft or other loss. RSP shall immediately notify SGI upon the discovery of any unauthorized access, theft or other
loss. 
  
 3.6 Scrap Material. SGI will assume all costs
associated with (with the exception of RSP handling fees) and responsibility for scrapping excess SGI Component Inventory, excess Materials and SGI Defective Product. SGI will be solely responsible for the proper disposal of any scrap material
generated during the performance of this Agreement and shall dispose of all such scrap according to applicable governmental regulations. SGI will provide RSP with the scrap vendor contact information and specific instructions on the process for
handling this material. These instructions will be mutually agreed to by both SGI and the RSP. 
  
 4.0. OBLIGATIONS OF SGI. 
  
 4.1. Non-Binding Repair Service Forecast. SGI will furnish RSP with a rolling 12-month non-binding forecast of SGI’s anticipated Repair Service capacity needs and a list of Repair Service priority. SGI will base such forecast on
estimates of demand for the repair and/or update of SGI Products and such forecast shall not be a guarantee of actual volumes. RSP is hereby authorized to purchase long lead-time components on behalf of SGI, solely in accordance with SGI’s
three-month forecast and terms listed in Section 3.3. RSP shall schedule its Repair Service activities in accordance with SGI’s priority list. SGI and RSP will agree in advance and in writing regarding cost liability and justification for long
lead-time component items and terms in accordance of Section 3.3. 
  

					
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 4.2. Purchase Orders. SGI (or its designee) shall issue a Purchase Order to RSP for all Repair
Services rendered hereunder. Such Purchase Orders will cover Repair Service for specific SGI Defective Products to be forwarded to RSP by SGI. SGI will issue separate Purchase Orders for services not specifically covered by this Agreement. Labor,
material charges, and lead time for such services shall be determined by the mutual written agreement of the parties made before SGI issues any such separate Purchase Order. 
  
 4.3. SGI Capital Equipment. SGI will (i) provide to RSP any SGI Capital Equipment and training (except items noted in
NRE agreement - EXHIBIT F) that SGI and RSP mutually determine are reasonably necessary for RSP to provide Repair Services under this Agreement, and (ii) replenish the SGI Capital Equipment on an as needed basis. RSP shall agree, upon SGI’s
request, to let SGI perform a physical audit of SGI Capital Equipment as noted in Exhibit C. Any improvements including but not limited to building improvements to RSP’s infrastructure, or additional equipment except as otherwise agreed to by
both parties in this Agreement will be paid for by RSP. 
  
 4.4. Excess Material. Provided that Material has been purchased by RSP strictly in accordance with SGI’s forecast under Section 3.3, if Material becomes unneeded for Repair Service due to termination of this Agreement, change in
SGI’s requirements or the like, and RSP has no other reasonable use for such Material, RSP shall provide such Material to SGI, and SGI shall reimburse RSP for the cost thereof. RSP is to provide SGI quarterly with a list of the excess Material
and justification for such excess. 
  
 5.0. PRICE, INVOICES AND TERMS OF
PAYMENT. 
  
 5.1. Prices. RSP’s prices for
Repair Services shall be set forth on Exhibit A (RSP’s Repair Price List). Such prices shall be reviewed on a semi-annual basis, or as mutually agreed to by both parties. RSP shall provide SGI with a written quote for any Repair Services not
listed in Exhibit A. All prices for Repair Services shall include all charges for repairing, inspecting, packaging, packing, and shipping SGI’s product. SGI shall be responsible for any sales, service, provincial, value added or similar taxes.
SGI shall pay applicable taxes when invoiced by RSP or will supply appropriate tax exemption certificates. 
  
 5.2. Invoices and Terms of Payment. After each shipment of Repaired SGI Product, RSP shall send a separate invoice to SGI, including the item
number(s) shipped, the Purchase Order number, the Part Request ID, and accompanied by a bill of lading or packing list. Each such invoice shall cover not more than one Purchase Order. SGI shall make payment within thirty (30) days after its receipt
of such invoice, provided, however, that such payment shall not constitute acceptance of Repaired SGI Product. 
  
 5.3. Bi-Annual Review. For all product pricing, (new and current) the parties will review pricing, invoicing and lead-time on a bi-annual basis to
determine whether any adjustments to future pricing should be made. Adjustments will not exceed 15% increase or decrease for any six month period and must be mutually agreed upon by both parties. 
  
 6.0. PACKING, SHIPMENT, AND RISK OF LOSS. 
  
 6.1. Packing. RSP shall pack (i) all Repaired SGI Product shipped
hereunder to ensure safe delivery, storage and exposure, in accordance with good commercial practice and in accordance with SGI’s packaging specifications referenced in each Bill-of-Material, and (ii) different types of Repaired SGI Product
separately. RSP shall label packages to show the number of the applicable Purchase Order, weight, name of item, part numbers, serial numbers, Clarify Part Request ID number, number of cartons, handling and loading instructions, and the addresses of
RSP and SGI and any special markings required by SGI, and shall include an itemized packing list with each shipment. Reference “Box Bar Code Label Specification”, (Exhibit D). 
  

					
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 6.2. Delivery. RSP shall deliver Repaired SGI Product F.O.B. Origin. SGI shall bear all shipping
charges and the mode of shipment shall conform to SGI’s instructions. In the absence of specific instructions from SGI, RSP shall select the carrier. SGI shall have the right to request air freight shipment, and, SGI shall bear the incremental
expense associated with such method of shipment. In the case of Repaired SGI Product that is being returned to RSP due to a breach of RSP’s warranty, RSP shall be responsible for all shipping charges, including costs of expedited shipping, to
and from SGI. 
  
 7.0. INSPECTION AND ACCEPTANCE. 
  
 7.1. Inspection. Notwithstanding any prior inspection or payments,
all Repaired SGI Product may be subject to final inspection and acceptance at SGI’s facility. If SGI performs such inspection or test at RSP’s premises, RSP will provide reasonable facilities and assistance for the safety and convenience
of SGI’s inspectors. RSP shall provide and maintain an inspection system. RSP shall keep records of all inspection work complete and available to SGI during the performance of this Agreement. 
  
 7.2. Acceptance. If any Repaired SGI Product delivered by RSP
hereunder is inoperative or otherwise not in conformance with the requirements of this Agreement, SGI may, return such Repaired SGI Product to RSP for retest and repair at no additional charge to SGI (as described in Section 9.0(b)). 
  
 7.3. RSP’s Responsibility for Repaired SGI Product Failures. No
inspection (including source inspection), test, approval (including design approval) or acceptance of Repaired SGI Product shall relieve RSP from responsibility for defects or other failures to meet the other requirements of this Agreement.
Notwithstanding the foregoing, and except as provided in Section 7.2, RSP’s liability shall be limited to repair of the Repaired SGI Product. 
  
 8.0. CONFIDENTIAL INFORMATION. 
  
 8.1.Disclosure of Confidential Information. Each party acknowledges that, in its performance of this Agreement, it may be desirable to disclose
Confidential Information to the other party. Information may include confidential, proprietary and/or trade secret information that is owned by third parties, which third parties have granted sufficient rights to a party to permit such party to
provide Confidential Information to the other party hereunder; for purposes of this Agreement, references to either party shall include any applicable third party owners/licensors of Information. 
  
 8.2. Use of Confidential Information. Receiving Party agrees that it
shall limit its disclosure of the Confidential Information solely to its employees or Representatives who have a need to know such Information for purposes of this Agreement. Without limiting the foregoing, Receiving Party agrees to treat Disclosing
Party’s Confidential Information with at least the same degree of care and protection that it uses with its own confidential information and trade secrets of similar kind and value. In any case where Receiving Party provides Disclosing
Party’s Information to a Representative, Receiving Party shall require that such Representative enter a written agreement with Receiving Party containing terms and conditions covering the disclosure, use and protection of such Information that
are at least as protective and restrictive as the applicable terms and conditions of this Section. 
  
 8.3. Exclusions to Obligation of Confidentiality. Receiving Party shall have no obligation hereunder as to Information provided by Disclosing Party
that (i) is known to Receiving Party at the time of disclosure, (ii) is independently developed by Receiving Party provided Receiving Party can show that such development was accomplished by or on behalf of Receiving Party without the use of or any
reference to Confidential Information supplied to Receiving Party by Disclosing Party, (iii) becomes rightfully known to Receiving Party from a source other than Disclosing Party without restriction on subsequent disclosure or use, (iv) is or
becomes part of the public domain through no wrongful 
  

					
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 act of Receiving Party, or (vi) is furnished to a third party by Disclosing Party without Disclosing
Party requiring such third party to undertake an obligation of confidentiality. Further, Receiving Party may disclose Confidential Information of Disclosing Party pursuant to a judicial or governmental request, requirement or order, provided that
Receiving Party gives the Disclosing Party sufficient prior notice to contest, or to seek a protective order restricting further disclosure of Confidential Information provided in response to, such request, requirement or order. 
  
 8.4. Confidentiality of Agreement. The parties agree that they shall
consider the terms and conditions of this Agreement to be Confidential Information, and that neither shall disclose such terms and conditions or the relationship between the parties to any third party, except its attorney’s and auditors,
without the express written permission of the other party. 
  
 8.5 Purchase Order Information Confidential. RSP agrees that it shall treat data relating to Repair Services ordered by SGI as confidential information of SGI, and that RSP will not use such data except for purposes of this
Agreement, or disclose such data to any third person for any reason whatsoever. 
  
 8.6. No Ownership Interest Transferred. Receiving Party acknowledges that it is granted only the limited right to use Confidential Information provided herein, and that such right is revocable at will by the
Disclosing Party and not coupled with any interest in the Confidential Information. Neither party transfers to the other any right of ownership in or title to any Confidential Information or other intellectual property hereunder, either expressly or
by implication, estoppel or otherwise. 
  
 8.7. Termination of
Possession of Confidential Information; Survival of Obligations. On the Disclosing Party’s request, Receiving Party shall (i) promptly return or destroy all Confidential Information of Disclosing Party, (ii) discontinue all further use of
Confidential Information of Disclosing Party, and (iii) certify in writing to Disclosing Party that such actions have been taken. The obligations of the parties under this Agreement relating to the confidentiality of Confidential Information shall
survive and continue after any termination of this Agreement for a period of three (3) years after the date of such termination. 
  
 9.0. RSP’S SERVICE WARRANTY. 
  
 RSP hereby represents and warrants to SGI that: 
  

	 	a.	It has the right and authority to enter this Agreement and provide Repair Service hereunder. RSP shall obtain all necessary certifications, registrations and licenses and will
comply with all existing and future governmental laws and regulations in performing Repair Services authorized under this Agreement. 

  

	 	b.	Repaired SGI Product will be free from defects in RSP-supplied Material and workmanship for a period of One year after the date Repaired SGI Product is shipped by RSP. In the event
that any Repaired SGI Product is found to not be in conformity with the foregoing warranty, RSP shall, at RSP’s expense, replace, repair or correct any such item. The warranty set forth in this Section 9.0(b) shall not apply to Repaired SGI
Products that have been damaged by abuse, misuse, accident, alteration not authorized by SGI, or neglect. 

  
 THE FOREGOING WARRANTIES ARE IN LIEU OF, AND RSP DISCLAIMS, ALL OTHER WARRANTIES, EXPRESS OR IMPLIED, INCLUDING, WITHOUT LIMITATION, ANY WARRANTY OF MERCHANTABILITY OR
FITNESS FOR A PARTICULAR PURPOSE. 
  
 10.0. LIMITATION OF LIABILITY.
IN NO EVENT SHALL A PARTY BE LIABLE TO THE OTHER PARTY FOR EXEMPLARY, INCIDENTAL, INDIRECT, SPECIAL OR CONSEQUENTIAL DAMAGES OF ANY KIND, INCLUDING WITHOUT LIMITATION LOSS OF PROFIT, LOSS OF USE, SAVINGS OR REVENUE, WHETHER OR NOT ADVISED OF THE
POSSIBILITY OF SUCH LOSS, HOWEVER CAUSED AND ON ANY THEORY OF LIABILITY, ARISING OUT OF THIS AGREEMENT OR THE RELATIONSHIP OF RSP AND SGI. 
  

					
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 11.0. TERM AND TERMINATION. 
  
 11.1. Term. The initial term of this Agreement shall commence upon the Effective Date and shall end three (3) years
from the Effective Date (the “Initial Term”). Thereafter, this Agreement will automatically renew for successive periods of (1) year each (each a “Renewal Term”). 
  
 11.2. Termination for Convenience. Either party may terminate this Agreement, at any time after the initial 12 months
of the Agreement for any reason by delivering nine- (9) month’s written notice to the other party. 
  
 11.3. Termination for Cause. If either party materially defaults in its performance or breaches any of the terms or conditions of this Agreement,
then the other party may give written notice to the breaching or defaulting party that if the breach or default is not cured within thirty (30) days the Agreement will be terminated. If such notice is given and the breach or default is not cured
during the thirty-day period, then the Agreement shall automatically terminate at the end of that period. Upon termination, and upon SGI’s request, RSP shall (i) provide to SGI all required technical information, parts lists, source lists or
parts, test fixtures, test and diagnostic information, schematics and drawings, and the like, solely to allow SGI to make repairs of Product, and (ii) work closely with SGI to find suitable replacement part(s). 
  
 11. 4. Transition or Discontinuance of Business. RSP shall make a
good faith effort to cooperate to effect a smooth and orderly transition of the Repair Services provided hereunder to a third party service provider. From the time that either party receives a notice of termination until the effective termination
date, RSP shall cooperate fully with any newly appointed party performing the duties contemplated hereunder. Such cooperation shall include: allowing the new repair vendor to walk through RSP’s facility; training of the new provider at
SGI’s cost; the prompt release of SGI Component Inventory, excess Materials, SGI Defective Product and SGI Capital Equipment as requested by SGI during the transition period. 
  
 11.5. Limitation on Liability on Termination. In the event of termination by either party in accordance with any of
the provisions of this Agreement, neither party shall be liable to the other for incidental or consequential damages, including the loss of prospective profits or anticipated sales. 
  
 11.6. Survival of Certain Terms. The provisions of Sections 3.4, 8.0, 9.0, 10.0, 11.6 and 12.1, shall survive the
termination or expiration of this Agreement for any reason. All other rights and obligations of the parties shall cease upon termination or expiration of this Agreement. 
  
 12.0 INDEMNIFICATION AND INSURANCE 
  

12.1 Indemnification. To the fullest extent permitted by law, RSP and SGI shall indemnify, defend and hold each other harmless from and against
any and all claims, demands, actions, suits, proceedings, losses, damages, penalties, obligations, liabilities, costs and expenses (including, without limitation, reasonable attorneys’ fees) arising directly or indirectly, in whole or in part,
from the negligence or willful misconduct of either party or the breach by either party of its obligations under this Agreement, except to the extent arising from the negligence or willful misconduct of the other party. Both parties hereby
acknowledge and agree that the foregoing indemnity shall apply to the acts and omissions of its agents, employees, officers, partners, principals, contractors and subcontractors. 
  
 12.2 Insurance. RSP shall obtain and maintain in full force and effect during the term of this Agreement (i) All Risk
property insurance sufficient to cover any loss or destruction of 
  

					
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 SGI related material, inventory and equipment, provided however that the minimum limit of such policy
shall be twenty-five million dollars ($25,000,000), (ii) commercial general liability insurance (including contractual liability coverage) with primary coverage limits of not less than one million dollars ($1,000,000) per occurrence and Umbrella
Liability insurance of not less than three million dollars ($3,000,000), naming SGI as an additional insured there under (iii) workers compensation as required by law, and (iv) employers liability insurance in the amount of not less than one million
dollars ($1,000,000). RSP shall also be responsible to pay any associated deductibles. At the time of execution of this Agreement, RSP shall provide SGI with a certificate of insurance evidencing the insurance coverage’s required. Insurer shall
mail to SGI at least thirty (30) days prior written notice of any cancellation of such insurance coverage; RSP shall immediately confirm with SGI that such notice has been received. 
  
 13.0. GENERAL. 
  
 13.1. Governing Law; Venue, Waiver of Jury Trial. This Agreement shall be governed by and interpreted in accordance with the laws of the State of
California, excluding its choice of law rules. The parties hereto expressly waive any right they have to a jury trial and agree that any court proceeding under this Agreement shall be tried by a judge without a jury. 
  
 13.2. Errors. SGI reserves the right to correct clerical errors in
any Purchase Order however, SGI agrees to reimburse RSP for any board repairs that may have been completed prior to the error correction. 
  
 13.3 Publicity. RSP shall not make or authorize any news release, advertisement, or other disclosure that shall deny or confirm the existence of
this Agreement without the prior written consent of SGI. Notwithstanding the previous sentence, SGI grants RSP the one-time right to announce the existence of the contract and business relationship following the execution of this Agreement. The
language will be subject to approval by SGI, which shall not be unnecessarily withheld. 
  
 13.4. Severability. In the event that any one or more of the provisions of this Agreement shall for any reason be held to be unenforceable under the law of any state or of the United States of America, such
unenforceability shall not affect any other provision hereof, but this Agreement shall then be construed as if such unenforceable provision or provisions had never been contained herein. 
  
 13.5. Assignment; Subcontracting. Neither party may assign or transfer this Agreement without the express, written
permission of the other party, and any such assignment or transfer shall be null and void, except that a party may assign this Agreement to a purchaser of all, or substantially all, of its assets. RSP shall give SGI 60 days written notice,
subsequent to any material change in its ownership. RSP shall not delegate, outsource or subcontract any part of its duties and obligations hereunder without the prior written approval of SGI. 
  
 13.6. No waiver. The failure of either party to enforce at any time
any of the provisions hereof shall not be construed to be a waiver of the right of such party thereafter to enforce any such provisions. 
  
 13.7. Order of Precedence. The terms and conditions specified in this Agreement shall take precedence over any provisions in Purchase Orders or
other RSP or SGI business forms. In the event of a conflict in the terms and conditions of this Agreement, the Exhibits, a Purchase Order, the order of precedence shall be (a) the Agreement, then (b) the Exhibits, then (c) the Purchase Order.

  
 13.8. No Agency. No agency, partnership, joint venture
or other joint relationship is created hereby. 
  
 13.9. Force
Majeure. Notwithstanding anything else in this Agreement, no default, delay or failure to perform on the part of either party shall be considered a breach of this Agreement, if such default, delay, or failure to perform is shown to be due
entirely to 
  

					
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 causes beyond the reasonable control of the party charged with a default, including, but not
limited to, causes such as strikes, lockouts or other labor disputes, riots, civil disturbances, actions or inaction’s of governmental authorities, epidemics, war, embargoes, severe weather, fire, earthquakes, acts of God or the public enemy,
nuclear disasters, default of a common carrier. 
  
 13.10.
Notices. Notices under this Agreement shall be sufficient only if sent by certified mail, return receipt requested, confirmed facsimile, or personally delivered to the parties at their addresses first set forth above. Notice by mail shall be
deemed received three days after deposit. Notices shall be sent to the addresses first set forth above, and copies of notices to SGI shall also be sent to the attention of “Corporate Legal Services.” 
  
 13.11. Audit and Records. RSP shall maintain records relating to the
Repair Service to ensure compliance herein, and shall allow an independent auditor to audit and analyze appropriate records of RSP. RSP shall permit such audit to occur within twenty (20) days of RSP’s receipt of SGI’s written request to
conduct such audit during normal business hours, and at a time mutually agreed upon. Audits shall not unreasonably interfere with RSP’s business activities. SGI shall pay for the audits. If an audit reveals discrepancies in excess of $1,000.00,
RSP shall take all action necessary to correct the discrepancy and implement procedures to correct the practice that resulted in the discrepancy. 
  
 13.12. Section Headings. The parties agree that the Section and/or paragraph headings used in this Agreement are for reference purposes only and
shall not be used in the interpretation of this Agreement. 
  
 13.13. Mandatory Clauses Required Under Government Contracts or Subcontracts. If Repaired SGI Product provided hereunder is for delivery to the U.S. Government under either a prime or lower tier subcontract, clauses contained in the
current issue of the Federal Procurement Regulations (FPR), Federal Acquisition Regulations (FAR) or the Department of Defense Supplement to the FAR, as applicable, which the government makes mandatory for a contractor under a government contract to
include in its subcontracts there under shall apply to this Agreement. A copy of the applicable documents will be provided by SGI upon request by RSP which will list the FARs that are applicable to said prime or lower tier subcontract under which
the delivery of the Repaired SGI Product is governed. 
  
 13.14. Resolution of Disputes. The parties agree that they will make good faith efforts to settle any dispute, claim or controversy arising out of or relating to this Agreement by discussion, negotiation and/or mediation. 

 
 13.15. Environment. RSP represents and warrants that it has been
granted or issued all permits required for the safe handling and disposal of all materials or hazardous waste used by the RSP in the performance of this Agreement. RSP has implemented programs necessary to monitor and maintain all required licenses
and permits and to prevent releases of materials to the environment. RSP’s employees shall have been trained to properly, safely and legally (in accordance with all applicable local, state and federal laws and regulations) handle hazardous
materials and wastes. RSP shall notify SGI in writing, immediately of the discovery of any regulatory action taken or initiated against RSP whether or not such action relates to or arises out of this Agreement, that may result in fines or penalties,
prosecution or which may impact RSP’s ability to deliver the goods required under this Agreement. Regulatory compliance, management of RSP’s employees, facilities and processes is strictly the responsibility of the RSP. SGI has no express
or implied responsibility for the same. 
  
 13.16. Complete
Agreement. This Agreement, including Attachments, constitutes the complete and exclusive statement of the agreement between the parties that supersedes all proposals, oral or written, and all other communications between the parties relating to
the subject matter of this Agreement. Each party acknowledges that it has not relied upon any representation or statement not contained herein. 
  

					
	 SGI Confidential
	 	- 9 -	 	 

 13.17 Attachments. 
  
 Exhibit A - PDSI Price List 
  
 Exhibit B - Supplier Quality Requirements 
  
 Exhibit C - SGI Owned Capital Equipment - Repair Equipment 
  
 Exhibit D - Box Bar Code Label Specifications 
  
 Exhibit E - Cycle Count Procedure 
  
 Exhibit F - NRE Pricing 
  

							
	SILICON GRAPHICS, INC.	 	PINNACLE DATA SYSTEMS, INC.
				
	By:	 	 /s/ Terry Oberdank

	 	By:	  	 /s/ CLW

	 	 	Terry Oberdank	 	 	  	Christopher L Winslow
	NAME	 	(PRINT OR TYPE)	 	NAME	  	(PRINT OR TYPE)
	TITLE	 	VP Technology Solutions	 	TITLE	  	Vice President

  

					
	 SGI Confidential
	 	- 10 -Fourth Amendment to Lease Agreement with Alstom Power, Inc.

 Exhibit 10.2 
  
 FOURTH AMENDMENT TO LEASE AGREEMENT 
  
 THIS FOURTH AMENDMENT TO LEASE AGREEMENT (the “Fourth Amendment”) made and entered into as of the 11th day of June 2004 by and between THE FUND IX, FUND X, FUND XI and REIT JOINT VENTURE, a Georgia general partnership
(hereinafter referred to as “Landlord”) and ALSTOM POWER INC., a Delaware corporation (hereinafter referred to as “Tenant”). 
  
 WI T N E S S E T H: 
  
 WHEREAS, Wells Real Estate Fund IX, L.P. and ABB Flakt, Inc. entered into that certain Lease Agreement dated December 10, 1996, as amended by First
Amendment to Lease Agreement dated as of October 22, 1999, as amended by Second Amendment to Lease Agreement dated November 23, 1999, and as amended by Third Amendment to Lease Agreement dated May 19, 2000 (and letter agreement related thereto dated
August 7, 2000) (collectively, the “Lease”) relating to premises in a building located at 1409 Centerpoint Boulevard, Knoxville, Tennessee 37932; and 
  

WHEREAS, Landlord is the successor to Wells Real Estate Fund IX, L.P. as “Landlord” under the Lease; and 
  
 WHEREAS, Tenant is the successor to ABB Flakt, Inc. as “Tenant”
under the Lease; and 
  
 WHEREAS, Landlord and Tenant desire to
withdraw and cancel the Notice of Termination dated December 29, 2003, given by Tenant to Landlord under the Lease (“Notice of Termination”) and to reinstate, amend and restate the Lease as hereinafter set forth. 
  
 NOW, THEREFORE, for and in consideration of the premises, the sum of Ten
Dollars ($10.00) in hand paid by each of the parties hereto to the other, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Landlord and Tenant do hereby covenant and agree as follows.

  
 1. Reinstatement of Lease; Withdrawal of Notices; and
Restatement of Lease. Landlord and Tenant hereby covenant and agree that, effective as of the date hereof, the Lease is hereby reinstated in its entirety and by this reference is restated in its entirety, incorporated herein and made a part
hereof. Landlord and Tenant hereby further covenant and agree that, contemporaneously with the foregoing reinstatement and restatement of the Lease, the Notice of Termination is hereby withdrawn, revoked, cancelled and rendered null, void and of no
further force or effect. 
  
 2. Defined Terms. The terms
and words of art used herein, as indicated by the initial capitalization thereof, shall have the same respective meanings given to such terms and words of art in the Lease. 
  
 3. Rentable Area. Landlord and Tenant stipulate, acknowledge and agree that as of the date hereof, and at all times
since July 1, 2000, the Rentable Floor Area of the Demised Premises is and has been 84,404 square feet and the Rentable Floor Area of the Building is and has been 84,404 square feet. Accordingly, Landlord and Tenant further stipulate, acknowledge
and agree that, as of the date hereof, and at all times since July 1, 2000, the Tenant’s Share is and has been 100%. 
  
 4. Term. The Lease is hereby modified and amended so that the Lease Term shall end, unless extended or sooner terminated as provided in the Lease
as from time to time modified (including but not limited to as modified by this Fourth Amendment), on October 31, 2014. 

 5. Base Rental Rate. The “Base Rental Rate” for the period commencing on July 1, 2004,
shall be as follows: 
  

			
	 Period

	  	Base Rental Rate per square foot of Rentable Floor
Area of the Demised Premises

	 July 1, 2004, through June 30, 2005
	  	$16.50
	 July 1, 2005, through June 30, 2006
	  	$17.00
	 July 1, 2006, through June 30, 2007
	  	$17.50
	 July 1, 2007, through June 30, 2008
	  	$18.03
	 July 1, 2008, through June 30, 2009
	  	$18.57
	 July 1, 2009, through June 30, 2010
	  	$19.13
	 July 1, 2010, through June 30, 2011
	  	$19.70
	 July 1, 2011, through June 30, 2012
	  	$20.29
	 July 1, 2012, through June 30, 2013
	  	$20.90
	 July 1, 2013, through June 30, 2014
	  	$21.53
	 July 1, 2014, through October 31, 2014
	  	$22.18

  
 6. Base Rental.
Article 6 of the Lease is hereby modified and amended by adding the following at the end thereof: 
  
 Notwithstanding the foregoing to the contrary, from and after July 1, 2004, (a) Tenant shall pay to Landlord Base Rental for each Annual Period equal to
the Base Rental Rate for such Annual Period multiplied by the Rentable Floor Area of the Demised Premises, and (b) Tenant shall pay to Landlord Base Rental for the period July 1, 2014, through October 31, 2014, in equal monthly installments equal to
one twelfth of the Base Rental Rate for such period multiplied by the Rentable Floor Area of the Demised Premises. As used in this Lease, the term “Annual Period” shall mean the twelve month period commencing on July 1, 2004, and each
successive twelve month period thereafter during the Lease Term. 
  
 7. Additional Rental. The provisions of Article 7 of the Lease prior to the modifications contained in this Fourth Amendment shall apply to the portion of the Lease Term ending on June 30, 2004. Article 7 of the Lease as applied to
the portion of the Lease Term commencing on July 1, 2004, is hereby modified and amended as follows: 
  
 Article 7(a) of the Lease is hereby modified by adding the following at the end thereof: “Landlord and Tenant acknowledge and agree that for the
portion of the Lease Term commencing on July 1, 2004, and ending on December 31, 2004, “Tenant’s Forecast Additional Rental” shall be zero. At any time on or after November 1, 2004, Landlord may give Tenant a statement of
Tenant’s Forecast Additional Rental for the calendar year 2005.” 
  
 Article 7(b) of the Lease is hereby modified by deleting the first sentence thereof in its entirety and inserting in lieu thereof the following: “For purposes of this Lease, “Tenant’s Additional
Rental” shall mean for each calendar year (or portion thereof) Tenant’s Share of the Excess Operating Expenses (defined below) for such calendar year (or portion thereof). “Excess Operating Expenses” shall mean, with respect to a
full calendar year, the amount, if any, by which the Operating Expenses (defined below) for such calendar year exceed the Operating Expenses for the calendar year 2004. “Excess Operating Expenses” shall mean, with respect to any partial
calendar year, the amount, if any, by which the Operating Expenses (defined below) for such partial calendar year exceed that amount equal to the result of multiplying the Operating Expenses for the calendar year 2004 by a fraction, the numerator of
which is the number of days within such partial calendar year, and the denominator of which is the number of days (365 or 366) in the entire calendar year.” 
  
 8. Rent Abatement. Provided and on the condition that on July 1, 2004, no default and no event of default by Tenant
then exists under the Lease as modified by this Fourth Amendment, no Base Rental and no Tenant’s Additional Rental and no Tenant’s Forecast Additional Rental shall be due or payable for or with respect to the period of the Lease Term from
July 1, 2004, through and including October 31, 2004. 
  
 9.
Tenant Allowance. Landlord shall provide Tenant with an allowance (the “Tenant Allowance”) in the amount of $245,000.00 to reimburse Tenant for costs incurred by Tenant (not in excess of $245,000.00) for the construction of
additional improvements in the Premises (including design fees and construction costs), and for cabling and 

 
furniture installed in the Premises. The Tenant Allowance shall be paid in accordance with Schedule ”A” attached hereto and by reference made a
part hereof. 
  
 10. Extension Option. Special Stipulation
1(a) on Exhibit ”F” to the Lease is hereby modified and amended by deleting the first sentence thereof in its entirety and inserting the following in lieu thereof: “Tenant is hereby granted options to extend the Lease Term for two (2)
successive additional periods of five (5) years each (each such additional period being herein referred to as an “Extended Term”) by giving written notice of such extension to Landlord at least twelve (12) months prior to the expiration of
the initial Lease Term or the then current Extended Term, as the case may be.” References in Special Stipulation 1 to the “initial Lease Term” and words of similar import shall be deemed to be references to the Lease Term commencing
on the date of the Lease and ending on October 31, 2014. 
  
 11.
Special Stipulations. Special Stipulations 2, 7, and 8 on Exhibit ”F” to the Lease are hereby deleted in their entirety. 
  
 12. Option to Terminate. Tenant is hereby granted a one time option to terminate the Lease (as from time to time modified, including but not
limited to as modified by this Fourth Amendment) as of June 30, 2012. In order to exercise such option to terminate, Tenant must give written notice to Landlord, on or before June 30, 2011, of the exercise by Tenant of such option to terminate (upon
the giving of such notice the Lease Term shall be deemed to end on June 30, 2012), and such notice shall constitute the agreement by Tenant to pay to Landlord, in immediately available funds, on or before April 1, 2012, an amount equal to the
Termination Payment (as hereinafter defined). All Rent shall be accounted for as of the termination date. Tenant shall have the right to exercise this option to terminate provided that on the date of such exercise no default and no event of default
then exists. In the event Tenant gives such notice of termination, Tenant shall deliver to Landlord, on or before April 1, 2012, a termination fee (which shall be in addition to and not in lieu of any Rent payable under the Lease (as from time to
time modified, including but not limited to as modified by this Fourth Amendment) through the end of the Lease Term as shortened by Tenant’s election of such option to terminate) in an amount equal to the “Termination Payment” which
is the sum of the following: 
  
 (a) $1,090,895.28, plus

  
 (b) An amount equal to six times the monthly installment of
Tenant’s Forecast Additional Rent for the calendar year 2012. 
  
 13. Assignment. (a) The following sentence is hereby deleted in its entirety from Article 20 of the Lease: “Any consideration, in excess of the Rent and other charges and sums due and payable by Tenant under this Lease, paid to
Tenant by any assignee of this Lease for its assignment, or by any sublessee under or in connection with its sublease (when Landlord’s consent is required), or otherwise paid to Tenant by another party for use and occupancy of the Demised
Premises or any portion thereof, shall be retained by Tenant and Landlord shall have no right or claim thereto as against Tenant.” 
  
 (b) If Tenant shall assign the Lease as from time to time modified (including but not limited to as modified by this Fourth Amendment) or sublet the
Premises, or any part thereof, at a rental or for other consideration (after deducting therefrom the reasonable leasing commissions, tenant improvement allowances, rent abatements and marketing costs incurred by Tenant) in excess of the Rent (and
other charges and sums) or pro-rata portion thereof due and payable by Tenant under the Lease as so modified, then Tenant shall pay to Landlord as additional Rent fifty percent (50%) of any such excess rent or other consideration (after deducting
therefrom the reasonable leasing commissions, tenant improvement allowances, rent abatements and marketing costs incurred by Tenant) immediately upon receipt under any such assignment or, in the case of a sublease, (i) on the later of the first day
of each month during the term of any sublease, or the day of receipt from such subtenant, fifty percent (50%) of the excess of all rent and other consideration (after deducting therefrom the reasonable leasing commissions, tenant improvement
allowances, rent abatements and marketing costs incurred by Tenant) paid by the subtenant for such month over the Rent then payable to Landlord pursuant to the provisions of the Lease as so modified for said month (or if only a portion of the
Premises is being sublet, fifty percent (50%) of the excess of all rent and other consideration (after deducting therefrom the reasonable leasing commissions, tenant improvement allowances, rent abatements and marketing costs incurred by Tenant) due
from the subtenant for such month over the portion of the Rent then payable to Landlord pursuant to the 

 
provisions of the Lease as so modified for said month which is allocable on a Rentable Floor Area basis to the space sublet), and (ii) immediately upon the
receipt thereof, fifty percent (50%) of any other consideration realized by Tenant from such subletting. Landlord shall not be responsible for any deficiency if Tenant shall assign the Lease as so modified or sublet the Premises or any part thereof
at a rental less than that provided for in the Lease as so modified. 
  
 14. Letter of Credit. Article 39 of the Lease is hereby deleted in its entirety and Article 39 on Schedule ”B” attached hereto and by reference made a part hereof is inserted in lieu thereof. 
  
 15. Broker. Tenant represents and warrants to Landlord that (except
for Newmark Southern Region, LLC) no broker, agent, commission salesperson, or other person has represented Tenant in the negotiations for and procurement of this Fourth Amendment and that (except with respect to Newmark Southern Region, LLC) no
commissions, fees, or compensation of any kind are due and payable in connection herewith to any broker, agent, commission salesperson, or other person as a result of any act or agreement of Tenant. Tenant agrees to indemnify and hold Landlord
harmless from all loss, liability, damage, claim, judgment, cost or expense (including reasonable attorneys’ fees and court costs) suffered or incurred by Landlord as a result of a breach by Tenant of the representation and warranty contained
in the immediately preceding sentence or as a result of Tenant’s failure to pay commissions, fees, or compensation due to any broker who represented Tenant, whether or not disclosed, or as a result of any claim for any fee, commission or
similar compensation with respect to this Fourth Amendment made by any broker, agent or finder (other than Newmark Southern Region, LLC) claiming to have dealt with Tenant. Tenant shall cause any agent or broker representing Tenant to execute a lien
waiver to and for the benefit of Landlord, waiving any and all lien rights with respect to the Building and Land which such agent or broker has or might have under Tennessee law. Landlord will pay Newmark Southern Region, LLC a commission (the
“Newmark Commission”) of $5.00 multiplied by the number of square feet of Rentable Floor Area of the Premises for their services with respect to this Fourth Amendment as set forth in a separate agreement between Landlord and Newmark
Southern Region, LLC. Landlord agrees to indemnify and hold Tenant harmless from all loss, liability, damage, claim, judgement, cost or expense, (including reasonable attorney’s fees and court costs) suffered or incurred by Tenant as a result
of Landlord’s failure to pay the Newmark Commission to Newmark Southern Region, LLC or as a result of Landlord’s failure to pay commissions, fees or compensation due to any broker who represented Landlord, whether or not disclosed, with
respect to this Fourth Amendment. 
  
 16. Ratification.
Except as expressly modified and amended herein, the Lease shall remain in full force and effect and, as modified and amended herein, is expressly ratified and confirmed by the parties hereto. In the event of any conflict or inconsistency between
the terms and conditions of this Fourth Amendment and of the Lease, the terms and conditions of this Fourth Amendment shall govern and control. 
  
 17. Binding Effect. This Fourth Amendment shall be binding upon and shall inure to the benefit of Landlord and Tenant and their respective legal
representatives, successors and assigns. This Fourth Amendment shall be governed by and construed under the laws of the State of Tennessee. This Fourth Amendment may be executed in multiple counterparts, each of which shall constitute an original,
but all of which taken together shall constitute one and the same agreement. The executed signature pages of any counterpart hereof may be appended or attached to any other counterpart hereof; and, provided that all parties hereto shall have
executed a counterpart hereof, this Fourth Amendment shall be valid and binding upon the parties notwithstanding the fact that the execution of all parties may not be reflected upon any one single counterpart. 
  
 IN WITNESS WHEREOF, the parties hereto have caused this Fourth Amendment to
be signed and their respective seals to be hereunto duly affixed as of the day, month and year first above written. 
  
 “TENANT” 
  
 ALSTOM POWER INC., a Delaware corporation 
  

			
	 By:
	 	  

	 Name:
	 	  

	 Title:
	 	  

			
	 Attest:
	 	  

	 Name:
	 	  

	 Title:
	 	  

	 	 	 (CORPORATE SEAL)

  
 Signatures Continue on
Following Page 

 Continuation of Signature Page of Fourth Amendment to Lease Agreement 
  

									
	 “LANDLORD”

	THE FUND IX, FUND X, FUND XI and REIT JOINT VENTURE
		
	 By:
	 	 Wells Real Estate Fund IX, L.P., a

	 	 	 Georgia limited partnership

	 	 	 By:
	 	Wells Partners, L.P., a Georgia limited partnership, general partner
				
	 	 	 	 	 By:
	 	Wells Capital, Inc., a Georgia corporation, general partner
					
	 	 	 	 	 	 	 By:
	 	  

	 	 	 	 	 	 	 Name:
	 	  

	 	 	 	 	 	 	 Title:
	 	  

		
	 By:
	 	 Wells Real Estate Fund X, L.P., a

	 	 	 Georgia limited partnership

	 	 	 By:
	 	Wells Partners, L.P., a Georgia limited partnership, general partner
				
	 	 	 	 	 By:
	 	Wells Capital, Inc., a Georgia corporation, general partner
					
	 	 	 	 	 	 	 By:
	 	  

	 	 	 	 	 	 	 Name:
	 	  

	 	 	 	 	 	 	 Title:
	 	  

		
	 By:
	 	 Wells Real Estate Fund XI, L.P., a

	 	 	 Georgia limited partnership

	 	 	 By:
	 	Wells Partners, L.P., a Georgia limited partnership, general partner
				
	 	 	 	 	 By:
	 	Wells Capital, Inc., a Georgia corporation, general partner
					
	 	 	 	 	 	 	 By:
	 	  

	 	 	 	 	 	 	 Name:
	 	  

	 	 	 	 	 	 	 Title:
	 	  

		
	 By:
	 	 Wells Operating Partnership, L.P., a

	 	 	 Delaware limited partnership

	 	 	 By:
	 	Wells Real Estate Investment Trust, Inc., a Maryland corporation, general partner
				
	 	 	 	 	 By:
	 	  

	 	 	 	 	 Name:
	 	  

	 	 	 	 	 Title:
	 	  

	 	 	 (CORPORATE SEAL)

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