Document:

Exhibit 4.2

 

 

CONOCOPHILLIPS

 

as Issuer

 

and

 

THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A.

 

as Trustee

 

Indenture

 

Dated as of                         ,    

 

 

Subordinated Debt Securities

 

 

CONOCOPHILLIPS

 

RECONCILIATION AND TIE BETWEEN TRUST INDENTURE ACT OF 1939 AND INDENTURE, DATED AS OF                    ,      

 

	
Section of Trust Indenture Act of 1939
    	
 
    	
Section(s) of Indenture
    
	
Section 310
    	
 
    	
(a)(1)
    	
 
    	
7.10
    
	
 
    	
 
    	
(a)(2)
    	
 
    	
7.10
    
	
 
    	
 
    	
(a)(3)
    	
 
    	
Not applicable
    
	
 
    	
 
    	
(a)(4)
    	
 
    	
Not applicable
    
	
 
    	
 
    	
(a)(5)
    	
 
    	
7.10
    
	
 
    	
 
    	
(b)
    	
 
    	
7.08, 7.10
    
	
Section 311
    	
 
    	
(a)
    	
 
    	
7.11
    
	
 
    	
 
    	
(b)
    	
 
    	
7.11
    
	
 
    	
 
    	
(c)
    	
 
    	
Not applicable
    
	
Section 312
    	
 
    	
(a)
    	
 
    	
2.07
    
	
 
    	
 
    	
(b)
    	
 
    	
11.03
    
	
 
    	
 
    	
(c)
    	
 
    	
11.03
    
	
Section 313
    	
 
    	
(a)
    	
 
    	
7.06
    
	
 
    	
 
    	
(b)
    	
 
    	
7.06
    
	
 
    	
 
    	
(c)
    	
 
    	
7.06
    
	
 
    	
 
    	
(d)
    	
 
    	
7.06
    
	
Section 314
    	
 
    	
(a)
    	
 
    	
4.03, 4.04
    
	
 
    	
 
    	
(b)
    	
 
    	
Not applicable
    
	
 
    	
 
    	
(c)(1)
    	
 
    	
11.04
    
	
 
    	
 
    	
(c)(2)
    	
 
    	
11.04
    
	
 
    	
 
    	
(c)(3)
    	
 
    	
Not applicable
    
	
 
    	
 
    	
(d)
    	
 
    	
Not applicable
    
	
 
    	
 
    	
(e)
    	
 
    	
11.05
    
	
Section 315
    	
 
    	
(a)
    	
 
    	
7.01(b)
    
	
 
    	
 
    	
(b)
    	
 
    	
7.05
    
	
 
    	
 
    	
(c)
    	
 
    	
7.01(a)
    
	
 
    	
 
    	
(d)
    	
 
    	
7.01(c)
    
	
 
    	
 
    	
(d)(1)
    	
 
    	
7.01(c)
    
	
 
    	
 
    	
(d)(2)
    	
 
    	
7.01(c)
    
	
 
    	
 
    	
(d)(3)
    	
 
    	
7.01(c)
    
	
 
    	
 
    	
(e)
    	
 
    	
6.11
    
	
Section 316
    	
 
    	
(a)(1)(A)
    	
 
    	
6.05
    
	
 
    	
 
    	
(a)(1)(B)
    	
 
    	
6.04
    
	
 
    	
 
    	
(a)(2)
    	
 
    	
Not applicable
    
	
 
    	
 
    	
(a)(last sentence)
    	
 
    	
2.11
    
	
 
    	
 
    	
(b)
    	
 
    	
6.07
    
	
Section 317
    	
 
    	
(a)(1)
    	
 
    	
6.08
    
	
 
    	
 
    	
(a)(2)
    	
 
    	
6.09
    
	
 
    	
 
    	
(b)
    	
 
    	
2.06
    
	
Section 318
    	
 
    	
(a)
    	
 
    	
11.01
    

 

Note:  This reconciliation and tie shall not, for any purpose, be deemed to be part of the Indenture.

 

i

 

TABLE OF CONTENTS

 

	
 
    	
 
    	
Page
    
	
 
    	
 
    
	
ARTICLE I   DEFINITIONS AND INCORPORATION BY REFERENCE
    	
1
    
	
Section 1.01.
    	
Definitions
    	
1
    
	
Section 1.02.
    	
Other Definitions
    	
5
    
	
Section 1.03.
    	
Incorporation by   Reference of Trust Indenture Act
    	
6
    
	
Section 1.04.
    	
Rules of   Construction
    	
7
    
	
 
    	
 
    
	
ARTICLE II   THE SECURITIES
    	
7
    
	
Section 2.01.
    	
Amount Unlimited;   Issuable in Series
    	
7
    
	
Section 2.02.
    	
Denominations
    	
10
    
	
Section 2.03.
    	
Forms Generally
    	
10
    
	
Section 2.04.
    	
Execution,   Authentication, Delivery and Dating
    	
11
    
	
Section 2.05.
    	
Registrar and Paying   Agent
    	
12
    
	
Section 2.06.
    	
Paying Agent to Hold   Money in Trust
    	
13
    
	
Section 2.07.
    	
Holder Lists
    	
13
    
	
Section 2.08.
    	
Transfer and Exchange
    	
13
    
	
Section 2.09.
    	
Replacement Securities
    	
14
    
	
Section 2.10.
    	
Outstanding Securities
    	
14
    
	
Section 2.11.
    	
Original Issue   Discount, Foreign-Currency Denominated and Treasury Securities
    	
15
    
	
Section 2.12.
    	
Temporary Securities
    	
15
    
	
Section 2.13.
    	
Cancellation
    	
15
    
	
Section 2.14.
    	
Payments; Defaulted   Interest
    	
16
    
	
Section 2.15.
    	
Persons Deemed Owners
    	
16
    
	
Section 2.16.
    	
Computation of Interest
    	
16
    
	
Section 2.17.
    	
Global Securities;   Book-Entry Provisions
    	
17
    
	
 
    	
 
    
	
ARTICLE III   REDEMPTION
    	
19
    
	
Section 3.01.
    	
Applicability of   Article
    	
19
    
	
Section 3.02.
    	
Notice to the Trustee
    	
19
    
	
Section 3.03.
    	
Selection of Securities   To Be Redeemed
    	
19
    
	
Section 3.04.
    	
Notice of Redemption
    	
19
    
	
Section 3.05.
    	
Effect of Notice of   Redemption
    	
20
    
	
Section 3.06.
    	
Deposit of Redemption   Price
    	
20
    
	
Section 3.07.
    	
Securities Redeemed or   Purchased in Part
    	
21
    
	
Section 3.08.
    	
Purchase of Securities
    	
21
    
	
Section 3.09.
    	
Mandatory and Optional   Sinking Funds
    	
21
    
	
Section 3.10.
    	
Satisfaction of Sinking   Fund Payments with Securities
    	
22
    
	
Section 3.11.
    	
Redemption of   Securities for Sinking Fund
    	
22
    
	
 
    	
 
    
	
ARTICLE IV   COVENANTS
    	
23
    
	
Section 4.01.
    	
Payment of Securities
    	
23
    
	
Section 4.02.
    	
Maintenance of Office   or Agency
    	
23
    
	
Section 4.03.
    	
SEC Reports; Financial   Statements
    	
23
    
	
Section 4.04.
    	
Compliance Certificate
    	
24
    

 

ii

 

	
Section 4.05.
    	
Corporate Existence
    	
24
    
	
Section 4.06.
    	
Waiver of Stay,   Extension or Usury Laws
    	
24
    
	
Section 4.07.
    	
Additional Amounts
    	
25
    
	
 
    	
 
    
	
ARTICLE V   SUCCESSORS
    	
25
    
	
Section 5.01.
    	
Limitations on Mergers   and Consolidations
    	
25
    
	
Section 5.02.
    	
Successor Person   Substituted
    	
26
    
	
 
    	
 
    
	
ARTICLE VI   DEFAULTS AND REMEDIES
    	
26
    
	
Section 6.01.
    	
Events of Default
    	
26
    
	
Section 6.02.
    	
Acceleration
    	
28
    
	
Section 6.03.
    	
Other Remedies
    	
28
    
	
Section 6.04.
    	
Waiver of Defaults
    	
29
    
	
Section 6.05.
    	
Control by Majority
    	
29
    
	
Section 6.06.
    	
Limitations on Suits
    	
29
    
	
Section 6.07.
    	
Rights of Holders to   Receive Payment
    	
30
    
	
Section 6.08.
    	
Collection Suit by   Trustee
    	
30
    
	
Section 6.09.
    	
Trustee May File   Proofs of Claim
    	
30
    
	
Section 6.10.
    	
Priorities
    	
31
    
	
Section 6.11.
    	
Undertaking for Costs
    	
31
    
	
 
    	
 
    
	
ARTICLE VII   TRUSTEE
    	
32
    
	
Section 7.01.
    	
Duties of Trustee
    	
32
    
	
Section 7.02.
    	
Rights of Trustee
    	
33
    
	
Section 7.03.
    	
May Hold   Securities
    	
34
    
	
Section 7.04.
    	
Trustee’s Disclaimer
    	
34
    
	
Section 7.05.
    	
Notice of Defaults
    	
34
    
	
Section 7.06.
    	
Reports by Trustee to   Holders
    	
34
    
	
Section 7.07.
    	
Compensation and   Indemnity
    	
35
    
	
Section 7.08.
    	
Replacement of Trustee
    	
35
    
	
Section 7.09.
    	
Successor Trustee by   Merger, etc.
    	
37
    
	
Section 7.10.
    	
Eligibility;   Disqualification
    	
37
    
	
Section 7.11.
    	
Preferential Collection   of Claims Against the Company
    	
38
    
	
 
    	
 
    
	
ARTICLE VIII   DISCHARGE OF INDENTURE
    	
38
    
	
Section 8.01.
    	
Termination of the   Company’s Obligations
    	
38
    
	
Section 8.02.
    	
Application of Trust   Money
    	
41
    
	
Section 8.03.
    	
Repayment to Company
    	
42
    
	
Section 8.04.
    	
Reinstatement
    	
42
    
	
 
    	
 
    
	
ARTICLE IX   SUPPLEMENTAL INDENTURES AND AMENDMENTS
    	
42
    
	
Section 9.01.
    	
Without Consent of   Holders
    	
42
    
	
Section 9.02.
    	
With Consent of Holders
    	
44
    
	
Section 9.03.
    	
Compliance with Trust   Indenture Act
    	
45
    
	
Section 9.04.
    	
Revocation and Effect   of Consents
    	
46
    
	
Section 9.05.
    	
Notation on or Exchange   of Securities
    	
46
    
	
Section 9.06.
    	
Trustee to Sign   Amendments, etc.
    	
46
    

 

iii

 

	
ARTICLE X   SUBORDINATION OF SECURITIES
    	
47
    
	
Section 10.01.
    	
Securities Subordinated   to Senior Debt
    	
47
    
	
Section 10.02.
    	
No Payment on   Securities in Certain Circumstances
    	
47
    
	
Section 10.03.
    	
Securities Subordinated   to Prior Payment of All Senior Debt on Dissolution, Liquidation or   Reorganization
    	
48
    
	
Section 10.04.
    	
Subrogation to Rights   of Holders of Senior Debt
    	
49
    
	
Section 10.05.
    	
Obligations of the   Company Unconditional
    	
49
    
	
Section 10.06.
    	
Trustee Entitled to   Assume Payments Not Prohibited in Absence of Notice
    	
50
    
	
Section 10.07.
    	
Application by Trustee   of Amounts Deposited with It
    	
50
    
	
Section 10.08.
    	
Subordination Rights   Not Impaired by Acts or Omissions of the Company or Holders of Senior Debt
    	
51
    
	
Section 10.09.
    	
Trustee to Effectuate   Subordination of Securities
    	
51
    
	
Section 10.10.
    	
Right of Trustee to   Hold Senior Debt
    	
51
    
	
Section 10.11.
    	
Article X Not to   Prevent Events of Default
    	
51
    
	
Section 10.12.
    	
No Fiduciary Duty of   Trustee to Holders of Senior Debt
    	
52
    
	
Section 10.13.
    	
Article Applicable   to Paying Agent
    	
52
    
	
 
    	
 
    
	
ARTICLE XI   MISCELLANEOUS
    	
52
    
	
Section 11.01.
    	
Trust Indenture Act   Controls
    	
52
    
	
Section 11.02.
    	
Notices
    	
52
    
	
Section 11.03.
    	
Communication by   Holders with Other Holders
    	
54
    
	
Section 11.04.
    	
Certificate and Opinion   as to Conditions Precedent
    	
54
    
	
Section 11.05.
    	
Statements Required in   Certificate or Opinion
    	
54
    
	
Section 11.06.
    	
Rules by Trustee   and Agents
    	
55
    
	
Section 11.07.
    	
Legal Holidays
    	
55
    
	
Section 11.08.
    	
No Recourse Against   Others
    	
55
    
	
Section 11.09.
    	
Governing Law
    	
55
    
	
Section 11.10.
    	
Waiver of Jury Trial
    	
55
    
	
Section 11.11.
    	
No Adverse   Interpretation of Other Agreements
    	
55
    
	
Section 11.12.
    	
Successors
    	
55
    
	
Section 11.13.
    	
Severability
    	
56
    
	
Section 11.14.
    	
Counterpart Originals
    	
56
    
	
Section 11.15.
    	
Table of Contents,   Headings, etc.
    	
56
    
	
Section 11.16.
    	
Force Majeure
    	
56
    
	
Section 11.17.
    	
Tax Matters
    	
56
    

 

iv

 

INDENTURE dated as of              ,      between ConocoPhillips, a Delaware corporation (the “Company”), and The Bank of New York Mellon Trust Company, N.A., a national banking association, as trustee (the “Trustee”).

 

Each party agrees as follows for the benefit of the other party and for the equal and ratable benefit of the Holders of the Company’s unsecured subordinated debentures, notes or other evidences of indebtedness (the “Securities”) to be issued from time to time in one or more series as provided in this Indenture:

 

ARTICLE I

 

DEFINITIONS AND INCORPORATION BY REFERENCE

 

Section 1.01.                          Definitions.

 

“Additional Amounts” means any additional amounts required by the express terms of a Security or by or pursuant to a Board Resolution, under circumstances specified therein or pursuant thereto, to be paid by the Company with respect to certain taxes, assessments or other governmental charges imposed on certain Holders and that are owing to such Holders.

 

“Affiliate” of any specified Person means any other Person directly or indirectly controlling or controlled by, or under direct or indirect common control with, such specified Person.  For purposes of this definition, “control” of a Person shall mean the power to direct the management and policies of such Person, directly or indirectly, whether through the ownership of voting securities, by contract or otherwise, and the terms controlling and “controlled” shall have meanings correlative to the foregoing.

 

“Agent” means any Registrar or Paying Agent.

 

“Bankruptcy Law” means Title 11 of the United States Code or any similar federal, state or foreign law for the relief of debtors.

 

“Board of Directors” means the Board of Directors of the Company or any committee thereof duly authorized, with respect to any particular matter, to act by or on behalf of the Board of Directors of the Company.

 

“Board Resolution” means a copy of a resolution certified by the Secretary or an Assistant Secretary of the Company to have been duly adopted by the Board of Directors and to be in full force and effect on the date of such certification, and delivered to the Trustee.

 

“Business Day” means any day that is not a Legal Holiday.

 

“Capitalized Lease Obligation” of any Person means any obligation of such Person to pay rent or other amounts under a lease of property, real or personal, that is required to be capitalized for financial reporting purposes in accordance with GAAP; and the amount of such obligation shall be the capitalized amount thereof determined in accordance with GAAP.

 

 

“Company” means the Person named as the “Company” in the first paragraph of this instrument until a successor Person shall have become such pursuant to the applicable provisions of this Indenture, and thereafter “Company” shall mean such successor Person; provided, however, that for purposes of any provision contained herein which is required by the TIA, “Company” shall also mean each other obligor (if any) on the Securities of a series.

 

“Company Order” and “Company Request” mean, respectively, a written order or request signed in the name of the Company by two Officers of the Company, and delivered to the Trustee.

 

“Corporate Trust Office of the Trustee” means the office of the Trustee located at 601 Travis Street, Suite 1600, Houston, Texas 77002, Attention:  Corporate Trust Administration, and as may be located at such other address as the Trustee may give notice to the Company.

 

“Debt” of any Person means, without duplication:  (i) all indebtedness or obligations of such Person for borrowed money (whether or not the recourse of the lender is to the whole of the assets of such Person or only to a portion thereof); (ii) all obligations of such Person evidenced by notes, bonds, debentures or other similar instruments; (iii) all obligations of such Person in respect of letters of credit or other similar instruments (or reimbursement obligations with respect thereto), other than standby letters of credit, bid or performance bonds and other obligations issued by or for the account of such Person in the ordinary course of business, to the extent not drawn or, to the extent drawn, if such drawing is reimbursed not later than the third Business Day following demand for reimbursement; (iv) all obligations of such Person to pay the deferred and unpaid purchase price of property or services, except trade payables and accrued expenses incurred in the ordinary course of business; (v) all Capitalized Lease Obligations of such Person; (vi) all Debt of others secured by a lien on any asset of such Person, whether or not such Debt is assumed by such Person (provided that if the obligations so secured have not been assumed in full by such Person or are not otherwise such Person’s legal liability in full, then such obligations shall be deemed to be in an amount equal to the greater of (a) the lesser of (1) the full amount of such obligations and (2) the fair market value of such assets, as determined in good faith by the Board of Directors of such Person, which determination shall be evidenced by a Board Resolution, and (b) the amount of obligations as have been assumed by such Person or which are otherwise such Person’s legal liability); and (vii) all Debt of others (other than endorsements in the ordinary course of business) guaranteed by such Person to the extent of such guarantee.

 

“Default” means any event, act or condition that is, or after notice or the passage of time or both would be, an Event of Default.

 

“Depositary” means, with respect to the Securities of any series issuable or issued in whole or in part in global form, the Person specified pursuant to Section 2.01 as the initial Depositary with respect to the Securities of such series, until a successor shall have been appointed and become such pursuant to the applicable provision of this Indenture, and thereafter “Depositary” shall mean or include such successor.

 

“Dollar” or “$” means a dollar or other equivalent unit in such coin or currency of the United States as at the time shall be legal tender for the payment of public and private debt.

 

2

 

“Exchange Act” means the Securities Exchange Act of 1934, as amended, and any successor statute.

 

“GAAP” means generally accepted accounting principles in the United States set forth in the opinions and pronouncements of the Accounting Principles Board of the American Institute of Certified Public Accountants and statements and pronouncements of the Financial Accounting Standards Board or in such other statements by such other entity as may be approved by a significant segment of the accounting profession of the United States, as in effect from time to time.

 

“Global Security” means a Security that is issued in global form in the name of the Depositary with respect thereto or its nominee.

 

“Government Obligations” means, with respect to a series of Securities, direct obligations of the government that issues the currency in which the Securities of the series are payable for the payment of which the full faith and credit of such government is pledged, or obligations of a Person controlled or supervised by and acting as an agency or instrumentality of such government, the payment of which is unconditionally guaranteed as a full faith and credit obligation by such government.

 

“Holder” means a Person in whose name a Security is registered.

 

“Indenture” means this Indenture as amended or supplemented from time to time pursuant to the provisions hereof, and includes the terms of a particular series of Securities established as contemplated by Section 2.01.

 

“interest” means, with respect to an Original Issue Discount Security that by its terms bears interest only after Maturity, interest payable after Maturity.

 

“Interest Payment Date,” when used with respect to any Security, shall have the meaning assigned to such term in the Security as contemplated by Section 2.01.

 

“Issue Date” means, with respect to Securities of a series, the date on which the Securities of such series are originally issued under this Indenture.

 

“Legal Holiday” means a Saturday, a Sunday or a day on which banking institutions in any of The City of New York, New York; Houston, Texas or a Place of Payment are authorized or obligated by law, regulation or executive order to remain closed.

 

“Maturity” means, with respect to any Security, the date on which the principal of such Security or an installment of principal becomes due and payable as therein or herein provided, whether at the Stated Maturity thereof, or by declaration of acceleration, call for redemption or otherwise.

 

“Officer” means the Chairman of the Board, the President, any Vice Chairman of the Board, any Vice President, the Chief Financial Officer, the Treasurer, any Assistant Treasurer, the Controller, the Secretary or any Assistant Secretary of a Person.

 

3

 

“Officers’ Certificate” means a certificate signed by two Officers of a Person.

 

“Opinion of Counsel” means a written opinion from legal counsel who is acceptable to the Trustee.  Such counsel may be an employee of or counsel to the Company or the Trustee.

 

“Original Issue Discount Security” means any Security that provides for an amount less than the principal amount thereof to be due and payable upon a declaration of acceleration of the Maturity thereof pursuant to Section 6.02.

 

“Person” means any individual, corporation, partnership, limited liability company, joint venture, incorporated or unincorporated association, joint stock company, trust, unincorporated organization or government or other agency, instrumentality or political subdivision thereof or other entity of any kind.

 

“Place of Payment” means, with respect to the Securities of any series, the place or places where the principal of, premium (if any) and interest on and any Additional Amounts with respect to the Securities of that series are payable as specified in accordance with Section 2.01 subject to the provisions of Section 4.02.

 

“principal” of a Security means the principal of the Security plus, when appropriate, the premium, if any, on the Security.

 

“Redemption Date” means, with respect to any Security to be redeemed, the date fixed for such redemption by or pursuant to this Indenture.

 

“Redemption Price” means, with respect to any Security to be redeemed, the price at which it is to be redeemed pursuant to this Indenture, as calculated by the Company.

 

“Responsible Officer” means any officer within the corporate trust department of the Trustee, including any vice president, assistant vice president, assistant secretary, assistant treasurer, trust officer or any other officer of the Trustee who customarily performs functions similar to those performed by the Persons who at the time shall be such officers, respectively, or to whom any corporate trust matter is referred because of such person’s knowledge of and familiarity with the particular subject and who shall have direct responsibility for the administration of this Indenture.

 

“Rule 144A Securities” means Securities of a series designated pursuant to Section 2.01 as entitled to the benefits of Section 4.03(b).

 

“SEC” means the Securities and Exchange Commission.

 

“Securities” has the meaning stated in the preamble of this Indenture and more particularly means any Securities authenticated and delivered under this Indenture.

 

“Security Custodian” means, with respect to Securities of a series issued in global form, the Trustee for Securities of such series, as custodian with respect to the Securities of such series, or any successor entity thereto.

 

4

 

“Senior Debt” of the Company, unless otherwise provided with respect to the Securities of a series as contemplated by Section 2.01, means (i) all Debt of the Company, whether currently outstanding or hereafter created, incurred or assumed, unless, by the terms of the instrument creating or evidencing such Debt or pursuant to which such Debt is outstanding, it is provided that such Debt is not superior in right of payment to the Securities or to other Debt which is pari passu with or subordinated to the Securities, and (ii) any modifications, refunding, deferrals, renewals or extensions of any such Debt or any securities, notes or other evidences of Debt issued in exchange for such Debt; provided that, unless otherwise provided with respect to the Securities of a series as contemplated by Section 2.01, in no event shall “Senior Debt” include (a) Debt of the Company owed or owing to any Subsidiary or any officer, director or employee of the Company or any Subsidiary, (b) Debt to trade creditors or (c) any liability for taxes owed or owing by the Company.

 

“Stated Maturity” means, when used with respect to any Security or any installment of principal thereof or interest thereon, the date specified in such Security as the fixed date on which the principal of such Security or such installment of principal or interest is due and payable.

 

“Subsidiary” means a Person at least a majority of the outstanding voting stock of which is owned, directly or indirectly, by the Company or by one or more other Subsidiaries, or by the Company and one or more other Subsidiaries.  For the purposes of this definition, “voting stock” means stock having voting power for the election of directors, whether at all times or only so long as no senior class of stock has such voting power by reason of any contingency.

 

“TIA” means the Trust Indenture Act of 1939, as amended, as in effect on the date hereof.

 

“Trustee” means the Person named as such above until a successor replaces it in accordance with the applicable provisions of this Indenture, and thereafter “Trustee” means each Person who is then a Trustee hereunder, and if at any time there is more than one such Person, “Trustee” as used with respect to the Securities of any series means the Trustee with respect to Securities of that series.

 

“United States” means the United States of America (including the States and the District of Columbia) and its territories and possessions, which include Puerto Rico, the U.S. Virgin Islands, Guam, American Samoa, Wake Island and the Northern Mariana Islands.

 

“U.S. Government Obligations” means Government Obligations with respect to Securities payable in Dollars.

 

Section 1.02.                          Other Definitions.

 

	
Applicable Law
    	
 
    	
11.17
    	
 
    
	
Bankruptcy Custodian
    	
 
    	
6.01
    	
 
    
	
Commission
    	
 
    	
1.03
    	
 
    
	
Conversion Event
    	
 
    	
6.01
    	
 
    
	
covenant defeasance
    	
 
    	
8.01
    	
 
    
	
Event of Default
    	
 
    	
6.01
    	
 
    

 

5

 

	
Exchange Rate
    	
 
    	
2.11
    	
 
    
	
indenture securities
    	
 
    	
1.03
    	
 
    
	
indenture security holder
    	
 
    	
1.03
    	
 
    
	
indenture to be qualified
    	
 
    	
1.03
    	
 
    
	
indenture trustee
    	
 
    	
1.03
    	
 
    
	
Judgment Currency
    	
 
    	
6.10
    	
 
    
	
legal defeasance
    	
 
    	
8.01
    	
 
    
	
mandatory sinking fund payment
    	
 
    	
3.09
    	
 
    
	
obligor
    	
 
    	
1.03
    	
 
    
	
optional sinking fund payment
    	
 
    	
3.09
    	
 
    
	
Paying Agent
    	
 
    	
2.05
    	
 
    
	
Payment Default
    	
 
    	
10.02
    	
 
    
	
Registrar
    	
 
    	
2.05
    	
 
    
	
Required Currency
    	
 
    	
6.10
    	
 
    
	
Successor
    	
 
    	
5.01
    	
 
    

 

Section 1.03.                          Incorporation by Reference of Trust Indenture Act.

 

Whenever this Indenture refers to a provision of the TIA, the provision is incorporated by reference in and made a part of this Indenture (and if the Indenture is not qualified under the TIA at that time, as if it were so qualified unless otherwise provided).  The following TIA terms used in this Indenture have the following meanings:

 

“Commission” means the SEC.

 

“indenture securities” means the Securities.

 

“indenture security holder” means a Holder.

 

“indenture to be qualified” means this Indenture.

 

“indenture trustee” or “institutional trustee” means the Trustee.

 

“obligor” on the indenture securities means the Company or any other obligor on the Securities.

 

All terms used in this Indenture that are defined by the TIA, defined by a TIA reference to another statute or defined by an SEC rule under the TIA have the meanings so assigned to them.

 

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Section 1.04.                          Rules of Construction.

 

Unless the context otherwise requires:

 

(1)                                 a term has the meaning assigned to it;

 

(2)                                 an accounting term not otherwise defined has the meaning assigned to it in accordance with GAAP;

 

(3)                                 “or” is not exclusive;

 

(4)                                 words in the singular include the plural, and in the plural include the singular;

 

(5)                                 provisions apply to successive events and transactions; and

 

(6)                                 all references in this instrument to Articles and Sections are references to the corresponding Articles and Sections in and of this instrument.

 

ARTICLE II

 

THE SECURITIES

 

Section 2.01.                          Amount Unlimited; Issuable in Series.

 

The aggregate principal amount of Securities that may be authenticated and delivered under this Indenture is unlimited.

 

The Securities may be issued in one or more series.  There shall be established in or pursuant to a Board Resolution, and set forth, or determined in the manner provided, in an Officers’ Certificate of the Company or in a Company Order, or established in one or more indentures supplemental hereto, prior to the issuance of Securities of any series:

 

(1)                                 the title of the Securities of the series (which shall distinguish the Securities of the series from the Securities of all other series);

 

(2)                                 if there is to be a limit, the limit upon the aggregate principal amount of the Securities of the series that may be authenticated and delivered under this Indenture (except for Securities authenticated and delivered upon registration of transfer of, or in exchange for, or in lieu of, other Securities of the series pursuant to Section 2.08, 2.09, 2.12, 2.17, 3.07 or 9.05 and except for any Securities which, pursuant to Section 2.04 or 2.17, are deemed never to have been authenticated and delivered hereunder); provided, however, that unless otherwise provided in the terms of the series, the authorized aggregate principal amount of such series may be increased before or after the issuance of any Securities of the series by a Board Resolution (or action pursuant to a Board Resolution) to such effect;

 

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(3)                                 whether any Securities of the series are to be issuable initially in temporary global form and whether any Securities of the series are to be issuable in permanent global form, as Global Securities or otherwise, and, if so, whether beneficial owners of interests in any such Global Security may exchange such interests for Securities of such series and of like tenor of any authorized form and denomination and the circumstances under which any such exchanges may occur, if other than in the manner provided in Section 2.17, and the initial Depositary and Security Custodian, if any, for any Global Security or Securities of such series;

 

(4)                                 the manner in which any interest payable on a temporary Global Security on any Interest Payment Date will be paid if other than in the manner provided in Section 2.14;

 

(5)                                 the date or dates on which the principal of and premium (if any) on the Securities of the series is payable or the method of determination thereof;

 

(6)                                 the rate or rates, or the method of determination thereof, at which the Securities of the series shall bear interest, if any, whether and under what circumstances Additional Amounts with respect to such Securities shall be payable, the date or dates from which such interest shall accrue, the Interest Payment Dates on which such interest shall be payable and the record date for the interest payable on any Securities on any Interest Payment Date, or if other than provided herein, the Person to whom any interest on Securities of the series shall be payable;

 

(7)                                 the place or places where, subject to the provisions of Section 4.02, the principal of, premium (if any) and interest on and any Additional Amounts with respect to the Securities of the series shall be payable;

 

(8)                                 the period or periods within which, the price or prices (whether denominated in cash, securities or otherwise) at which and the terms and conditions upon which Securities of the series may be redeemed, in whole or in part, at the option of the Company, if the Company is to have that option, and the manner in which the Company must exercise any such option, if different from those set forth herein;

 

(9)                                 the obligation, if any, of the Company to redeem, purchase or repay Securities of the series pursuant to any sinking fund or analogous provisions or at the option of a Holder thereof and the period or periods within which, the price or prices (whether denominated in cash, securities or otherwise) at which and the terms and conditions upon which Securities of the series shall be redeemed, purchased or repaid in whole or in part pursuant to such obligation;

 

(10)                          if other than denominations of $1,000 and any integral multiple thereof, the denomination in which any Securities of that series shall be issuable;

 

(11)                          if other than Dollars, the currency or currencies (including composite currencies) or the form, including equity securities, other debt securities (including Securities), warrants or any other securities or property of the Company or any other

 

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Person, in which payment of the principal of, premium (if any) and interest on and any Additional Amounts with respect to the Securities of the series shall be payable;

 

(12)                          if the principal of, premium (if any) or interest on or any Additional Amounts with respect to the Securities of the series are to be payable, at the election of the Company or a Holder thereof, in a currency or currencies (including composite currencies) other than that in which the Securities are stated to be payable, the currency or currencies (including composite currencies) in which payment of the principal of, premium (if any) and interest on and any Additional Amounts with respect to Securities of such series as to which such election is made shall be payable, and the periods within which and the terms and conditions upon which such election is to be made;

 

(13)                          if the amount of payments of principal of, premium (if any) and interest on and any Additional Amounts with respect to the Securities of the series may be determined with reference to any commodities, currencies or indices, values, rates or prices or any other index or formula, the manner in which such amounts shall be determined;

 

(14)                          if other than the entire principal amount thereof, the portion of the principal amount of Securities of the series that shall be payable upon declaration of acceleration of the Maturity thereof pursuant to Section 6.02;

 

(15)                          any additional means of satisfaction and discharge of this Indenture and any additional conditions or limitations to discharge with respect to Securities of the series pursuant to Article VIII or any modifications of or deletions from such conditions or limitations;

 

(16)                          any deletions or modifications of or additions to the Events of Default set forth in Section 6.01 or covenants of the Company set forth in Article IV pertaining to the Securities of the series;

 

(17)                          any restrictions or other provisions with respect to the transfer or exchange of Securities of the series, which may amend, supplement, modify or supersede those contained in this Article II;

 

(18)                          if the Securities of the series are to be convertible into or exchangeable for capital stock, other debt securities (including Securities), warrants, other equity securities or any other securities or property of the Company or any other Person, at the option of the Company or the Holder or upon the occurrence of any condition or event, the terms and conditions for such conversion or exchange;

 

(19)                          whether the Securities of the series are to be entitled to the benefit of Section 4.03(b) (and accordingly constitute Rule 144A Securities);

 

(20)                          any modifications to the definition of “Senior Debt,” to Article X or to the other provisions regarding subordination with respect to the Securities of the series; and

 

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(21)                          any other terms of the series (which terms shall not be prohibited by the provisions of this Indenture).

 

(22)                          All Securities of any one series shall be substantially identical except as to denomination and except as may otherwise be provided in or pursuant to the Board Resolution referred to above and (subject to Section 2.03) set forth, or determined in the manner provided, in the Officers’ Certificate or Company Order referred to above or in any such indenture supplemental hereto.

 

If any of the terms of the series are established by action taken pursuant to a Board Resolution, a copy of an appropriate record of such action, together with such Board Resolution, shall be set forth in an Officers’ Certificate or certified by the Secretary or an Assistant Secretary of the Company and delivered to the Trustee at or prior to the delivery of the Officers’ Certificate or Company Order setting forth the terms of the series.

 

The Securities shall be subordinated in right of payment to Senior Debt as provided in Article X and/or as specified as contemplated pursuant to this Section 2.01.

 

Section 2.02.                          Denominations.

 

The Securities of each series shall be issuable in such denominations as shall be specified as contemplated by Section 2.01.  In the absence of any such provisions with respect to the Securities of any series, the Securities of such series denominated in Dollars shall be issuable in denominations of $1,000 and any integral multiples thereof.

 

Section 2.03.                          Forms Generally.

 

The Securities of each series shall be in fully registered form and in substantially such form or forms (including temporary or permanent global form) established by or pursuant to a Board Resolution or in one or more indentures supplemental hereto.  The Securities may have notations, legends or endorsements required by law, securities exchange rule, the Company’s certificate of incorporation, bylaws or other similar governing documents, agreements to which the Company is subject, if any, or usage (provided that any such notation, legend or endorsement is in a form acceptable to the Company).  A copy of the Board Resolution establishing the form or forms of Securities of any series shall be delivered to the Trustee at or prior to the delivery of the Company Order contemplated by Section 2.04 for the authentication and delivery of such Securities.

 

The definitive Securities of each series shall be printed, lithographed or engraved on steel engraved borders or may be produced in any other manner, all as determined by the Officers executing such Securities, as evidenced by their execution thereof.

 

The Trustee’s certificate of authentication shall be in substantially the following form:

 

“This is one of the Securities of the series designated therein referred to in the within-mentioned Indenture.

 

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THE BANK OF NEW YORK   MELLON TRUST COMPANY, N.A., as Trustee
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Authorized   Signatory”.
    

 

Section 2.04.                          Execution, Authentication, Delivery and Dating.

 

Two Officers of the Company shall sign the Securities on behalf of the Company by manual or facsimile signature.  If an Officer of the Company whose signature is on a Security no longer holds that office at the time the Security is authenticated, the Security shall be valid nevertheless.

 

A Security shall not be entitled to any benefit under this Indenture or be valid or obligatory for any purpose until authenticated by the manual signature of an authorized signatory of the Trustee, which signature shall be conclusive evidence that the Security has been authenticated under this Indenture.  Notwithstanding the foregoing, if any Security has been authenticated and delivered hereunder but never issued and sold by the Company, and the Company delivers such Security to the Trustee for cancellation as provided in Section 2.13, together with a written statement (which need not comply with Section 11.05 and need not be accompanied by an Opinion of Counsel) stating that such Security has never been issued and sold by the Company, for all purposes of this Indenture such Security shall be deemed never to have been authenticated and delivered hereunder and shall never be entitled to the benefits of this Indenture.

 

At any time and from time to time after the execution and delivery of this Indenture, the Company may deliver Securities of any series executed by the Company to the Trustee for authentication, and the Trustee shall authenticate and deliver such Securities for original issue upon a Company Order for the authentication and delivery of such Securities or pursuant to such procedures acceptable to the Trustee as may be specified from time to time by Company Order.  Such order shall specify the amount of the Securities to be authenticated, the date on which the original issue of Securities is to be authenticated, the name or names of the initial Holder or Holders and any other terms of the Securities of such series not otherwise determined.  If provided for in such procedures, such Company Order may authorize (1) authentication and delivery of Securities of such series for original issue from time to time, with certain terms (including, without limitation, the Maturity dates or dates, original issue date or dates and interest rate or rates) that differ from Security to Security and (2) may authorize authentication and delivery pursuant to oral or electronic instructions from the Company or its duly authorized agent, which instructions shall be promptly confirmed in writing.

 

If the form or terms of the Securities of the series have been established in or pursuant to one or more Board Resolutions as permitted by Section 2.01, in authenticating such Securities, and accepting the additional responsibilities under this Indenture in relation to such Securities, the Trustee shall be entitled to receive (in addition to the Company Order referred to above and the other documents required by Section 11.04), and (subject to Section 7.01) shall be fully protected in relying upon:

 

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(a)                                 an Officers’ Certificate setting forth the Board Resolution and, if applicable, an appropriate record of any action taken pursuant thereto, as contemplated by the last paragraph of Section 2.01; and

 

(b)                                 an Opinion of Counsel to the effect that:

 

(i)                                     the form of such Securities has been established in conformity with the provisions of this Indenture;

 

(ii)                                  the terms of such Securities have been established in conformity with the provisions of this Indenture; and

 

(iii)                               that such Securities, when authenticated and delivered by the Trustee and issued by the Company in the manner and subject to any conditions specified in such Opinion of Counsel, will constitute valid and binding obligations of the Company, enforceable against the Company in accordance with their terms, except as the enforceability thereof may be limited by applicable bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance or other similar laws in effect from time to time affecting the rights of creditors generally, and the application of general principles of equity (regardless of whether such enforceability is considered in a proceeding in equity or at law).

 

If all the Securities of any series are not to be issued at one time, it shall not be necessary to deliver an Officers’ Certificate and Opinion of Counsel at the time of issuance of each such Security, but such Officers’ Certificate and Opinion of Counsel shall be delivered at or before the time of issuance of the first Security of the series to be issued.

 

The Trustee shall not be required to authenticate such Securities if the issuance of such Securities pursuant to this Indenture would affect the Trustee’s own rights, duties or immunities under the Securities and this Indenture or otherwise in a manner not reasonably acceptable to the Trustee.

 

The Trustee may appoint an authenticating agent acceptable to the Company to authenticate Securities.  Unless limited by the terms of such appointment, an authenticating agent may authenticate Securities whenever the Trustee may do so.  Each reference in this Indenture to authentication by the Trustee includes authentication by such agent.  An authenticating agent has the same rights as an Agent to deal with the Company or an Affiliate of the Company.

 

Each Security shall be dated the date of its authentication.

 

Section 2.05.                          Registrar and Paying Agent.

 

The Company shall maintain an office or agency for each series of Securities where Securities of such series may be presented for registration of transfer or exchange (“Registrar”) and an office or agency where Securities of such series may be presented for payment (“Paying Agent”).  The Registrar shall keep a register of the Securities of such series and of their transfer and exchange.  The Company may appoint one or more co-registrars and one or more additional

 

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paying agents.  The term “Registrar” includes any co-registrar and the term “Paying Agent” includes any additional paying agent.

 

The Company shall enter into an appropriate agency agreement with any Registrar or Paying Agent not a party to this Indenture.  The agreement shall implement the provisions of this Indenture that relate to such Agent.  The Company shall notify the Trustee of the name and address of any Agent not a party to this Indenture.  The Company may change any Paying Agent or Registrar without notice to any Holder.  If the Company fails to appoint or maintain another entity as Registrar or Paying Agent, the Trustee shall act as such.  The Company or any Subsidiary may act as Paying Agent or Registrar.

 

The Company initially appoints the Trustee as Registrar and Paying Agent.

 

Section 2.06.                          Paying Agent to Hold Money in Trust.

 

The Company shall require each Paying Agent other than the Trustee to agree in writing that the Paying Agent will hold in trust for the benefit of Holders or the Trustee all money held by the Paying Agent for the payment of principal of, premium, if any, or interest on or any Additional Amounts with respect to Securities and will notify the Trustee of any default by the Company in making any such payment.  While any such default continues, the Trustee may require a Paying Agent to pay all money held by it to the Trustee and to account for any funds disbursed.  The Company at any time may require a Paying Agent to pay all money held by it to the Trustee and to account for any funds disbursed.  Upon payment over to the Trustee and upon accounting for any funds disbursed, the Paying Agent (if other than the Company or a Subsidiary) shall have no further liability for the money.  If the Company or a Subsidiary acts as Paying Agent, it shall segregate and hold in a separate trust fund for the benefit of the Holders all money held by it as Paying Agent.  Each Paying Agent shall otherwise comply with TIA Section 317(b).

 

Section 2.07.                          Holder Lists.

 

The Trustee shall preserve in as current a form as is reasonably practicable the most recent list available to it of the names and addresses of Holders and shall otherwise comply with TIA Section 312(a).  If the Trustee is not the Registrar with respect to a series of Securities, the Company shall furnish to the Trustee at least five Business Days before each Interest Payment Date with respect to such series of Securities, and at such other times as the Trustee may request in writing, a list in such form and as of such date as the Trustee may reasonably require of the names and addresses of Holders of such series, and the Company shall otherwise comply with TIA Section 312(a).

 

Section 2.08.                          Transfer and Exchange.

 

Except as set forth in Section 2.17 or as may be provided pursuant to Section 2.01:

 

(a)                                 When Securities of any series are presented to the Registrar with the request to register the transfer of such Securities or to exchange such Securities for an equal principal amount of Securities of the same series of like tenor and of other authorized denominations, the Registrar shall register the transfer or make the exchange as requested if its

 

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requirements and the requirements of this Indenture for such transactions are met; provided, however, that the Securities presented or surrendered for registration of transfer or exchange shall be duly endorsed or accompanied by a written instruction of transfer in form reasonably satisfactory to the Registrar duly executed by the Holder thereof or by his attorney, duly authorized in writing, on which instruction the Registrar can rely.

 

(b)                                 To permit registrations of transfers and exchanges, the Company shall execute and the Trustee shall authenticate Securities at the Registrar’s written request and submission of the Securities or Global Securities.  No service charge shall be made to a Holder for any registration of transfer or exchange (except as otherwise expressly permitted herein), but the Company may require payment of a sum sufficient to cover any transfer tax or similar governmental charge payable in connection therewith (other than such transfer tax or similar governmental charge payable upon exchanges pursuant to Section 2.12, 3.07 or 9.05).  The Trustee shall authenticate Securities in accordance with the provisions of Section 2.04.  Notwithstanding any other provisions of this Indenture to the contrary, the Company shall not be required to register the transfer or exchange of (a) any Security selected for redemption in whole or in part pursuant to Article III, except the unredeemed portion of any Security being redeemed in part, or (b) any Security during the period beginning 15 Business Days prior to the mailing of notice of any offer to repurchase Securities of the series required pursuant to the terms thereof or of redemption of Securities of a series to be redeemed and ending at the close of business on the day of mailing.

 

Section 2.09.                          Replacement Securities.

 

If any mutilated Security is surrendered to the Trustee, or if the Holder of a Security claims that the Security has been destroyed, lost or stolen and the Company and the Trustee receive evidence to their satisfaction of the destruction, loss or theft of such Security, the Company shall issue and the Trustee shall authenticate a replacement Security of the same series if the Trustee’s requirements are met.  If any such mutilated, destroyed, lost or stolen Security has become or is about to become due and payable, the Company in its discretion may, instead of issuing a new Security, pay such Security.  If required by the Trustee or the Company, such Holder must furnish an indemnity bond that is sufficient in the judgment of the Trustee and the Company to protect the Company, the Trustee, any Agent or any authenticating agent from any loss that any of them may suffer if a Security is replaced.  The Company and the Trustee may charge a Holder for their expenses in replacing a Security.

 

Every replacement Security is an additional obligation of the Company.

 

Section 2.10.                          Outstanding Securities.

 

The Securities outstanding at any time are all the Securities authenticated by the Trustee except for those canceled by it, those delivered to it for cancellation, those reductions in the interest in a Global Security effected by the Trustee hereunder and those described in this Section 2.10 as not outstanding.

 

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If a Security is replaced pursuant to Section 2.09, it ceases to be outstanding unless the Trustee receives proof satisfactory to it that the replaced Security is held by a bona fide purchaser.

 

If the principal amount of any Security is considered paid under Section 4.01, it ceases to be outstanding and interest on it ceases to accrue.

 

A Security does not cease to be outstanding because the Company or an Affiliate of the Company holds the Security.

 

Section 2.11.                          Original Issue Discount, Foreign-Currency Denominated and Treasury Securities.

 

In determining whether the Holders of the required principal amount of Securities have concurred in any direction, amendment, supplement, waiver or consent, (a) the principal amount of an Original Issue Discount Security shall be the principal amount thereof that would be due and payable as of the date of such determination upon acceleration of the Maturity thereof pursuant to Section 6.02, (b) the principal amount of a Security denominated in a foreign currency shall be the Dollar equivalent, as determined by the Company by reference to the noon buying rate in The City of New York for cable transfers for such currency, as such rate is certified for customs purposes by the Federal Reserve Bank of New York (the “Exchange Rate”) on the date of original issuance of such Security, of the principal amount (or, in the case of an Original Issue Discount Security, the Dollar equivalent, as determined by the Company by reference to the Exchange Rate on the date of original issuance of such Security, of the amount determined as provided in (a) above), of such Security and (c) Securities owned by the Company or any other obligor upon the Securities or any Affiliate of the Company or of such other obligor shall be disregarded, except that, for the purpose of determining whether the Trustee shall be protected in relying upon any such direction, amendment, supplement, waiver or consent, only Securities that a Responsible Officer of the Trustee actually knows are so owned shall be so disregarded.

 

Section 2.12.                          Temporary Securities.

 

Until definitive Securities of any series are ready for delivery, the Company may prepare and the Trustee shall authenticate temporary Securities.  Temporary Securities shall be substantially in the form of definitive Securities, but may have variations that the Company considers appropriate for temporary Securities.  Without unreasonable delay, the Company shall prepare and the Trustee shall authenticate definitive Securities in exchange for temporary Securities.  Until so exchanged, the temporary Securities shall in all respects be entitled to the same benefits under this Indenture as definitive Securities.

 

Section 2.13.                          Cancellation.

 

The Company at any time may deliver Securities to the Trustee for cancellation.  The Registrar and the Paying Agent shall forward to the Trustee any Securities surrendered to them for registration of transfer, exchange, payment or redemption or for credit against any sinking fund payment.  The Trustee shall cancel all Securities surrendered for registration of transfer, exchange, payment, redemption, replacement or cancellation or for credit against any sinking

 

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fund.  Unless the Company shall direct in writing that canceled Securities be returned to it, after written notice to the Company all canceled Securities held by the Trustee shall be disposed of in accordance with the usual disposal procedures of the Trustee, and the Trustee shall maintain a record of their disposal.  The Company may not issue new Securities to replace Securities that have been paid or that have been delivered to the Trustee for cancellation.

 

Section 2.14.                          Payments; Defaulted Interest.

 

Unless otherwise provided as contemplated by Section 2.01, interest (except defaulted interest) on any Security that is payable, and is punctually paid or duly provided for, on any Interest Payment Date shall be paid to the Persons who are registered Holders of that Security at the close of business on the record date next preceding such Interest Payment Date, even if such Securities are canceled after such record date and on or before such Interest Payment Date.  The Holder must surrender a Security to a Paying Agent to collect principal payments.  Unless otherwise provided with respect to the Securities of any series, the Company will pay the principal of, premium (if any) and interest on and any Additional Amounts with respect to the Securities in Dollars.  Such amounts shall be payable at the offices of the Trustee or any Paying Agent, provided that at the option of the Company, the Company may pay such amounts (1) by wire transfer with respect to Global Securities or (2) by check payable in such money mailed to a Holder’s registered address with respect to any Securities.

 

If the Company defaults in a payment of interest on the Securities of any series, the Company shall pay the defaulted interest in any lawful manner plus, to the extent lawful, interest on the defaulted interest, in each case at the rate provided in the Securities of such series and in Section 4.01.  The Company may pay the defaulted interest to the Persons who are Holders on a subsequent special record date.  At least 15 days before any special record date selected by the Company, the Company (or the Trustee, in the name of and at the expense of the Company upon 20 days’ prior written notice from the Company setting forth such special record date and the interest amount to be paid) shall mail to Holders a notice that states the special record date, the related payment date and the amount of such interest to be paid.

 

Section 2.15.                          Persons Deemed Owners.

 

The Company, the Trustee, any Agent and any authenticating agent may treat the Person in whose name any Security is registered as the owner of such Security for the purpose of receiving payments of principal of, premium (if any) or interest on or any Additional Amounts with respect to such Security and for all other purposes.  None of the Company, the Trustee, any Agent or any authenticating agent shall be affected by any notice to the contrary.

 

Section 2.16.                          Computation of Interest.

 

Except as otherwise specified as contemplated by Section 2.01 for Securities of any series, interest on the Securities of each series shall be computed on the basis of a year comprising twelve 30-day months.

 

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Section 2.17.                          Global Securities; Book-Entry Provisions.

 

If Securities of a series are issuable in global form as a Global Security, as contemplated by Section 2.01, then, notwithstanding clause (10) of Section 2.01 and the provisions of Section 2.02, any such Global Security shall represent such of the outstanding Securities of such series as shall be specified therein and may provide that it shall represent the aggregate amount of outstanding Securities from time to time endorsed thereon and that the aggregate amount of outstanding Securities represented thereby may from time to time be reduced or increased, as appropriate, to reflect exchanges, transfers or redemptions.  Any endorsement of a Global Security to reflect the amount, or any increase or decrease in the amount, of outstanding Securities represented thereby shall be made by the Trustee (i) in such manner and upon instructions given by such Person or Persons as shall be specified in such Security or in a Company Order to be delivered to the Trustee pursuant to Section 2.04 or (ii) otherwise in accordance with written instructions or such other written form of instructions as is customary for the Depositary for such Security, from such Depositary or its nominee on behalf of any Person having a beneficial interest in such Global Security.  Subject to the provisions of Section 2.04 and, if applicable, Section 2.12, the Trustee shall deliver and redeliver any Security in permanent global form in the manner and upon instructions given by the Person or Persons specified in such Security or in the applicable Company Order.  With respect to the Securities of any series that are represented by a Global Security, the Company authorizes the execution and delivery by the Trustee of a letter of representations or other similar agreement or instrument in the form customarily provided for by the Depositary appointed with respect to such Global Security.  Any Global Security may be deposited with the Depositary or its nominee, or may remain in the custody of the Trustee or the Security Custodian therefor pursuant to a FAST Balance Certificate Agreement or similar agreement between the Trustee and the Depositary.  If a Company Order has been, or simultaneously is, delivered, any instructions by the Company with respect to endorsement or delivery or redelivery of a Security in global form shall be in writing but need not comply with Section 11.05 and need not be accompanied by an Opinion of Counsel.

 

Members of, or participants in, the Depositary (“Agent Members”) shall have no rights under this Indenture with respect to any Global Security held on their behalf by the Depositary, or the Trustee or the Security Custodian as its custodian, or under such Global Security, and the Depositary may be treated by the Company, the Trustee or the Security Custodian and any agent of the Company, the Trustee or the Security Custodian as the absolute owner of such Global Security for all purposes whatsoever.  Notwithstanding the foregoing, (i) the registered holder of a Global Security of a series may grant proxies and otherwise authorize any Person, including Agent Members and Persons that may hold interests through Agent Members, to take any action that a Holder of Securities of such series is entitled to take under this Indenture or the Securities of such series and (ii) nothing herein shall prevent the Company, the Trustee or the Security Custodian, or any agent of the Company, the Trustee or the Security Custodian, from giving effect to any written certification, proxy or other authorization furnished by the Depositary or shall impair, as between the Depositary and its Agent Members, the operation of customary practices governing the exercise of the rights of a beneficial owner of any Security.

 

Notwithstanding Section 2.08, and except as otherwise provided pursuant to Section 2.01, transfers of a Global Security shall be limited to transfers of such Global Security in whole, but

 

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not in part, to the Depositary, its successors or their respective nominees.  Interests of beneficial owners in a Global Security may be transferred in accordance with the rules and procedures of the Depositary.  Securities shall be transferred to all beneficial owners in exchange for their beneficial interests in a Global Security if, and only if, either (1) the Depositary notifies the Company that it is unwilling or unable to continue as Depositary for the Global Security and a successor Depositary is not appointed by the Company within 90 days of such notice, (2) an Event of Default has occurred with respect to such series and is continuing and the Registrar has received a request from the Depositary to issue Securities in lieu of all or a portion of the Global Security (in which case the Company shall deliver Securities within 30 days of such request) or (3) the Company determines not to have the Securities represented by a Global Security.

 

In connection with any transfer of a portion of the beneficial interests in a Global Security to beneficial owners pursuant to this Section 2.17, the Registrar shall reflect on its books and records the date and a decrease in the principal amount of the Global Security in an amount equal to the principal amount of the beneficial interests in the Global Security to be transferred, and the Company shall execute, and the Trustee upon receipt of a Company Order for the authentication and delivery of Securities shall authenticate and deliver, one or more Securities of the same series of like tenor and amount.

 

In connection with the transfer of all the beneficial interests in a Global Security to beneficial owners pursuant to this Section 2.17, the Global Security shall be deemed to be surrendered to the Trustee for cancellation, and the Company shall execute, and the Trustee shall authenticate and deliver, to each beneficial owner identified by the Depositary in exchange for its beneficial interests in the Global Security, an equal aggregate principal amount of Securities of authorized denominations.

 

Neither the Company nor the Trustee will have any responsibility or liability for any aspect of the records relating to, or payments made on account of, Securities by the Depositary, or for maintaining, supervising or reviewing any records of the Depositary relating to such Securities.  Neither the Company nor the Trustee shall be liable for any delay by the related Global Security Holder or the Depositary in identifying the beneficial owners, and each such Person may conclusively rely on, and shall be protected in relying on, instructions from such Global Security Holder or the Depositary for all purposes (including with respect to the registration and delivery, and the respective principal amounts, of the Securities to be issued).

 

The provisions of the last sentence of the third paragraph of Section 2.04 shall apply to any Global Security if such Global Security was never issued and sold by the Company and the Company delivers to the Trustee the Global Security together with written instructions (which need not comply with Section 11.05 and need not be accompanied by an Opinion of Counsel) with regard to the cancellation or reduction in the principal amount of Securities represented thereby, together with the written statement contemplated by the last sentence of the third paragraph of Section 2.04.

 

Notwithstanding the provisions of Sections 2.03 and 2.14, unless otherwise specified as contemplated by Section 2.01, payment of principal of, premium (if any) and interest on and any Additional Amounts with respect to any Global Security shall be made to the Person or Persons specified therein.

 

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ARTICLE III

 

REDEMPTION

 

Section 3.01.                          Applicability of Article.

 

Securities of any series that are redeemable before their Stated Maturity shall be redeemable in accordance with their terms and (except as otherwise specified as contemplated by Section 2.01 for Securities of any series) in accordance with this Article III.

 

Section 3.02.                          Notice to the Trustee.

 

If the Company elects to redeem Securities of any series pursuant to this Indenture, it shall notify the Trustee of the Redemption Date and the principal amount of Securities of such series to be redeemed.  The Company shall so notify the Trustee at least 45 days before the Redemption Date (unless a shorter notice shall be satisfactory to the Trustee) by delivering to the Trustee an Officers’ Certificate stating that such redemption will comply with the provisions of this Indenture and of the Securities of such series.  Any such notice may be canceled at any time prior to the mailing of such notice of such redemption to any Holder and shall thereupon be void and of no effect.

 

Section 3.03.                          Selection of Securities To Be Redeemed.

 

If less than all the Securities of any series are to be redeemed (unless all of the Securities of such series of a specified tenor are to be redeemed), the particular Securities to be redeemed shall be selected not more than 60 days prior to the Redemption Date in accordance with the procedures of the Depository, if Global Securities, or by the Trustee from the outstanding Securities of such series (and tenor) not previously called for redemption, either pro rata, by lot or by such other method as the Trustee shall deem fair and appropriate and that may provide for the selection for redemption of portions (equal to the minimum authorized denomination for Securities of that series or any integral multiple thereof) of the principal amount of Securities of such series of a denomination larger than the minimum authorized denomination for Securities of that series or of the principal amount of Global Securities of such series.

 

The Trustee shall promptly notify the Company and the Registrar in writing of the Securities selected for redemption and, in the case of any Securities selected for partial redemption, the principal amount thereof to be redeemed.

 

For purposes of this Indenture, unless the context otherwise requires, all provisions relating to redemption of Securities shall relate, in the case of any of the Securities redeemed or to be redeemed only in part, to the portion of the principal amount thereof which has been or is to be redeemed.

 

Section 3.04.                          Notice of Redemption.

 

Notice of redemption shall be given by first-class mail, postage prepaid, mailed not less than 30 nor more than 60 days prior to the Redemption Date, to each Holder of Securities to be

 

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redeemed, at the address of such Holder appearing in the register of Securities maintained by the Registrar.

 

All notices of redemption shall identify the Securities to be redeemed and shall state:

 

(1)                                 the Redemption Date;

 

(2)                                 the Redemption Price;

 

(3)                                 that, unless the Company defaults in making the redemption payment, interest on Securities called for redemption ceases to accrue on and after the Redemption Date, and the only remaining right of the Holders of such Securities is to receive payment of the Redemption Price upon surrender to the Paying Agent of the Securities redeemed;

 

(4)                                 if any Security is to be redeemed in part, the portion of the principal amount thereof to be redeemed and that on and after the Redemption Date, upon surrender for cancellation of such Security to the Paying Agent, a new Security or Securities in the aggregate principal amount equal to the unredeemed portion thereof will be issued without charge to the Holder;

 

(5)                                 that Securities called for redemption must be surrendered to the Paying Agent to collect the Redemption Price and the name and address of the Paying Agent;

 

(6)                                 that the redemption is for a sinking or analogous fund, if such is the case; and

 

(7)                                 the CUSIP number, if any, relating to such Securities.

 

Notice of redemption of Securities to be redeemed at the election of the Company shall be given by the Company or, at the Company’s written request, by the Trustee in the name and at the expense of the Company.

 

Section 3.05.                          Effect of Notice of Redemption.

 

Once notice of redemption is mailed, Securities called for redemption become due and payable on the Redemption Date and at the Redemption Price.  Upon surrender to the Paying Agent, such Securities called for redemption shall be paid at the Redemption Price, but interest installments whose maturity is on or prior to such Redemption Date will be payable on the relevant Interest Payment Dates to the Holders of record at the close of business on the relevant record dates specified pursuant to Section 2.01.

 

Section 3.06.                          Deposit of Redemption Price.

 

On or prior to 11:00 a.m., New York City time, on any Redemption Date, the Company shall deposit with the Trustee or the Paying Agent (or, if the Company is acting as the Paying Agent, segregate and hold in trust as provided in Section 2.06) an amount of money in same day funds sufficient to pay the Redemption Price of, and (except if the Redemption Date shall be an Interest Payment Date) accrued interest on and any Additional Amounts with respect to, the

 

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Securities or portions thereof which are to be redeemed on that date, other than Securities or portions thereof called for redemption on that date which have been delivered by the Company to the Trustee for cancellation.

 

If the Company complies with the preceding paragraph, then, unless the Company defaults in the payment of such Redemption Price, interest on the Securities to be redeemed will cease to accrue on and after the applicable Redemption Date, whether or not such Securities are presented for payment, and the Holders of such Securities shall have no further rights with respect to such Securities except for the right to receive the Redemption Price upon surrender of such Securities.  If any Security called for redemption shall not be so paid upon surrender thereof for redemption, the principal, premium, if any, any Additional Amounts, and, to the extent lawful, accrued interest thereon shall, until paid, bear interest from the Redemption Date at the rate specified pursuant to Section 2.01 or provided in the Securities or, in the case of Original Issue Discount Securities, such Securities’ yield to maturity.

 

Section 3.07.                          Securities Redeemed or Purchased in Part.

 

Upon surrender to the Paying Agent of a Security to be redeemed in part, the Company shall execute and the Trustee shall authenticate and deliver to the Holder of such Security without service charge a new Security or Securities, of the same series and of any authorized denomination as requested by such Holder in aggregate principal amount equal to, and in exchange for, the unredeemed portion of the principal of the Security so surrendered that is not redeemed.

 

Section 3.08.                          Purchase of Securities.

 

Unless otherwise specified as contemplated by Section 2.01, the Company and any Affiliate of the Company may, subject to applicable law, at any time purchase or otherwise acquire Securities in the open market or by private agreement.  Any such acquisition shall not operate as or be deemed for any purpose to be a redemption of the indebtedness represented by such Securities.  Any Securities purchased or acquired by the Company may be delivered to the Trustee and, upon such delivery, the indebtedness represented thereby shall be deemed to be satisfied.  Section 2.13 shall apply to all Securities so delivered.

 

Section 3.09.                          Mandatory and Optional Sinking Funds.

 

The minimum amount of any sinking fund payment provided for by the terms of Securities of any series is herein referred to as a “mandatory sinking fund payment,” and any payment in excess of such minimum amount provided for by the terms of Securities of any series is herein referred to as an “optional sinking fund payment.” Unless otherwise provided by the terms of Securities of any series, the cash amount of any sinking fund payment may be subject to reduction as provided in Section 3.10.  Each sinking fund payment shall be applied to the redemption of Securities of any series as provided for by the terms of Securities of such series and by this Article III.

 

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Section 3.10.                          Satisfaction of Sinking Fund Payments with Securities.

 

The Company may deliver outstanding Securities of a series (other than any previously called for redemption) and may apply as a credit Securities of a series that have been redeemed either at the election of the Company pursuant to the terms of such Securities or through the application of permitted optional sinking fund payments pursuant to the terms of such Securities, in each case in satisfaction of all or any part of any sinking fund payment with respect to the Securities of such series required to be made pursuant to the terms of such series of Securities; provided that such Securities have not been previously so credited.  Such Securities shall be received and credited for such purpose by the Trustee at the Redemption Price specified in such Securities for redemption through operation of the sinking fund and the amount of such sinking fund payment shall be reduced accordingly.

 

Section 3.11.                          Redemption of Securities for Sinking Fund.

 

Not less than 45 days prior (unless a shorter period shall be satisfactory to the Trustee) to each sinking fund payment date for any series of Securities, the Company will deliver to the Trustee an Officers’ Certificate of the Company specifying the amount of the next ensuing sinking fund payment for that series pursuant to the terms of that series, the portion thereof, if any, which is to be satisfied by payment of cash and the portion thereof, if any, which is to be satisfied by delivery of or by crediting Securities of that series pursuant to Section 3.10 and will also deliver or cause to be delivered to the Trustee any Securities to be so delivered.  Failure of the Company to timely deliver or cause to be delivered such Officers’ Certificate and Securities specified in this paragraph, if any, shall not constitute a default but shall constitute the election of the Company (i) that the mandatory sinking fund payment for such series due on the next succeeding sinking fund payment date shall be paid entirely in cash without the option to deliver or credit Securities of such series in respect thereof and (ii) that the Company will make no optional sinking fund payment with respect to such series as provided in this Section 3.11.

 

If the sinking fund payment or payments (mandatory or optional or both) to be made in cash on the next succeeding sinking fund payment date plus any unused balance of any preceding sinking fund payments made in cash shall exceed $100,000 (or the Dollar equivalent thereof based on the applicable Exchange Rate on the date of original issue of the applicable Securities) or a lesser sum if the Company shall so request with respect to the Securities of any particular series, such cash shall be applied on the next succeeding sinking fund payment date to the redemption of Securities of such series at the sinking fund redemption price together with accrued interest to the date fixed for redemption.  If such amount shall be $100,000 (or the Dollar equivalent thereof as aforesaid) or less and the Company makes no such request then it shall be carried over until a sum in excess of $100,000 (or the Dollar equivalent thereof as aforesaid) is available.  Not less than 30 days before each such sinking fund payment date, the Trustee shall select the Securities to be redeemed upon such sinking fund payment date in the manner specified in Section 3.03 and cause notice of the redemption thereof to be given in the name of and at the expense of the Company in the manner provided in Section 3.04.  Such notice having been duly given, the redemption of such Securities shall be made upon the terms and in the manner stated in Sections 3.05, 3.06 and 3.07.

 

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ARTICLE IV

 

COVENANTS

 

Section 4.01.                          Payment of Securities.

 

The Company shall pay the principal of, premium (if any) and interest on and any Additional Amounts with respect to the Securities of each series on the dates and in the manner provided in the Securities of such series and in this Indenture.  Principal, premium, interest and any Additional Amounts shall be considered paid on the date due if the Paying Agent (other than the Company or a Subsidiary) holds on that date money deposited by the Company designated for and sufficient to pay all principal, premium, interest and any Additional Amounts then due.

 

The Company shall pay interest (including post-petition interest in any proceeding under any Bankruptcy Law) on overdue principal and premium (if any), at a rate equal to the then applicable interest rate on the Securities to the extent lawful; and it shall pay interest (including post-petition interest in any proceeding under any Bankruptcy Law) on overdue installments of interest and any Additional Amount (without regard to any applicable grace period) at the same rate to the extent lawful.

 

Section 4.02.                          Maintenance of Office or Agency.

 

The Company will maintain in each Place of Payment for any series of Securities an office or agency (which may be an office of the Trustee, the Registrar or the Paying Agent) where Securities of that series may be presented for registration of transfer or exchange, where Securities of that series may be presented for payment and where notices and demands to or upon the Company in respect of the Securities of that series and this Indenture may be served.  Unless otherwise designated by the Company by written notice to the Trustee, such office or agency shall be the office of the Trustee in The City of New York, which on the date hereof is located at 101 Barclay Street, Floor 8W, New York, New York 10286.  The Company will give prompt written notice to the Trustee of the location, and any change in the location, of such office or agency.  If at any time the Company shall fail to maintain any such required office or agency or shall fail to furnish the Trustee with the address thereof, such presentations, surrenders, notices and demands may be made or served at the Corporate Trust Office of the Trustee.

 

The Company may also from time to time designate one or more other offices or agencies where the Securities of one or more series may be presented or surrendered for any or all such purposes and may from time to time rescind such designations; provided, however, that no such designation or rescission shall in any manner relieve the Company of its obligation to maintain an office or agency in each Place of Payment for Securities of any series for such purposes.  The Company will give prompt written notice to the Trustee of any such designation or rescission and of any change in the location of any such other office or agency.

 

Section 4.03.                          SEC Reports; Financial Statements.

 

(a)                                 If the Company is subject to the requirements of Section 13 or 15(d) of the Exchange Act, the Company shall file with the Trustee, within 15 days after it files the same with the SEC, copies of the annual reports and the information, documents and other reports (or

 

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copies of such portions of any of the foregoing as the SEC may by rules and regulations prescribe) that the Company is required to file with the SEC pursuant to Section 13 or 15(d) of the Exchange Act.  If this Indenture is qualified under the TIA, but not otherwise, the Company shall also comply with the provisions of TIA Section 314(a).  Delivery of such reports, information and documents to the Trustee shall be for informational purposes only, and the Trustee’s receipt thereof shall not constitute constructive notice of any information contained therein or determinable from information contained therein, including the Company’s compliance with any of its covenants hereunder (as to which the Trustee is entitled to rely exclusively on Officers’ Certificates or certificates delivered pursuant to Section 4.04).

 

(b)                                 If the Company is not subject to the requirements of Section 13 or 15(d) of the Exchange Act, the Company shall furnish to all Holders of Rule 144A Securities and prospective purchasers of Rule 144A Securities designated by the Holders of Rule 144A Securities, promptly upon their request, the information required to be delivered pursuant to Rule 144A(d)(4) promulgated under the Securities Act of 1933, as amended.

 

Section 4.04.                          Compliance Certificate.

 

(a)                                 The Company shall deliver to the Trustee, within 120 days after the end of each fiscal year of the Company, a statement signed by an Officer of the Company, which need not constitute an Officers’ Certificate, complying with TIA Section 314(a)(4) and stating that in the course of performance by the signing Officer of his duties as such Officer of the Company he would normally obtain knowledge of the keeping, observing, performing and fulfilling by the Company of its obligations under this Indenture, and further stating that to the best of his knowledge the Company has kept, observed, performed and fulfilled each and every covenant contained in this Indenture and is not in default in the performance or observance of any of the terms, provisions and conditions hereof (or, if a Default or Event of Default shall have occurred, describing all such Defaults or Events of Default of which such Officer may have knowledge and what action the Company is taking or proposes to take with respect thereto).

 

(b)                                 The Company shall, so long as Securities of any series are outstanding, deliver to the Trustee, forthwith upon any Officer of the Company becoming aware of any Default or Event of Default under this Indenture, an Officers’ Certificate specifying such Default or Event of Default and what action the Company is taking or proposes to take with respect thereto.

 

Section 4.05.                          Corporate Existence.

 

Subject to Article V, the Company shall do or cause to be done all things necessary to preserve and keep in full force and effect its existence.

 

Section 4.06.                          Waiver of Stay, Extension or Usury Laws.

 

The Company covenants (to the extent that it may lawfully do so) that it will not at any time insist upon, or plead, or in any manner whatsoever claim or take the benefit or advantage of, any stay or extension law or any usury law or other law that would prohibit or forgive it from paying all or any portion of the principal of or interest on the Securities as contemplated herein, wherever enacted, now or at any time hereafter in force, or which may affect the covenants or the

 

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performance of this Indenture; and (to the extent that it may lawfully do so) the Company hereby expressly waives all benefit or advantage of any such law, and covenants that it will not hinder, delay or impede the execution of any power herein granted to the Trustee, but will suffer and permit the execution of every such power as though no such law had been enacted.

 

Section 4.07.                          Additional Amounts.

 

If the Securities of a series expressly provide for the payment of Additional Amounts, the Company will pay to the Holder of any Security of such series Additional Amounts as expressly provided therein.  Whenever in this Indenture there is mentioned, in any context, the payment of the principal of or any premium or interest on, or in respect of, any Security of any series or the net proceeds received from the sale or exchange of any Security of any series, such mention shall be deemed to include mention of the payment of Additional Amounts provided for in this Section 4.07 to the extent that, in such context, Additional Amounts are, were or would be payable in respect thereof pursuant to the provisions of this Section 4.07 and express mention of the payment of Additional Amounts (if applicable) in any provisions hereof shall not be construed as excluding Additional Amounts in those provisions hereof where such express mention is not made.

 

ARTICLE V

 

SUCCESSORS

 

Section 5.01.                          Limitations on Mergers and Consolidations.

 

The Company shall not, in any transaction or series of transactions, consolidate with or merge into any Person, or sell, lease, convey, transfer or otherwise dispose of all or substantially all of its assets to any Person, unless:

 

(1)                                 either (a) the Company shall be the continuing Person or (b) the Person (if other than the Company) formed by such consolidation or into which the Company is merged, or to which such sale, lease, conveyance, transfer or other disposition shall be made (collectively, the “Successor”), is organized and validly existing under the laws of the United States, any political subdivision thereof or any State thereof or the District of Columbia, and expressly assumes by supplemental indenture the due and punctual payment of the principal of, premium (if any) and interest on and any Additional Amounts with respect to all the Securities and the performance of the Company’s covenants and obligations under this Indenture and the Securities;

 

(2)                                 immediately after giving effect to such transaction or series of transactions, no Default or Event of Default shall have occurred and be continuing or would result therefrom; and

 

(3)                                 the Company delivers to the Trustee an Officers’ Certificate and an Opinion of Counsel, each stating that the transaction and such supplemental indenture comply with this Indenture.

 

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Section 5.02.                          Successor Person Substituted.

 

Upon any consolidation or merger of the Company or any sale, lease, conveyance, transfer or other disposition of all or substantially all of the assets of the Company in accordance with Section 5.01, the Successor formed by such consolidation or into or with which the Company is merged or to which such sale, lease, conveyance, transfer or other disposition is made shall succeed to, and be substituted for, and may exercise every right and power of the Company under this Indenture and the Securities with the same effect as if such Successor had been named as the Company herein and the predecessor Company, in the case of a sale, conveyance, transfer or other disposition, shall be released from all obligations under this Indenture and the Securities.

 

ARTICLE VI

 

DEFAULTS AND REMEDIES

 

Section 6.01.                          Events of Default.

 

Unless either inapplicable to a particular series or specifically deleted or modified in or pursuant to the supplemental indenture or Board Resolution establishing such series of Securities or in the form of Security for such series, an “Event of Default,” wherever used herein with respect to Securities of any series, occurs if:

 

(1)                                 the Company defaults in the payment of interest on or any Additional Amounts with respect to any Security of that series when the same becomes due and payable and such default continues for a period of 30 days;

 

(2)                                 the Company defaults in the payment of (A) the principal of any Security of that series at its Maturity or (B) premium (if any) on any Security of that series when the same becomes due and payable;

 

(3)                                 the Company defaults in the deposit of any sinking fund payment, when and as due by the terms of a Security of that series, and such default continues for a period of 30 days;

 

(4)                                 the Company fails to comply with any of its other covenants or agreements in, or provisions of, the Securities of such series or this Indenture (other than an agreement, covenant or provision that has expressly been included in this Indenture solely for the benefit of one or more series of Securities other than that series) which shall not have been remedied within the specified period after written notice, as specified in the last paragraph of this Section 6.01;

 

(5)                                 the Company pursuant to or within the meaning of any Bankruptcy Law:

 

(A)                               commences a voluntary case,

 

(B)                               consents to the entry of an order for relief against it in an involuntary case,

 

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(C)                               consents to the appointment of a Bankruptcy Custodian of it or for all or substantially all of its property, or

 

(D)                               makes a general assignment for the benefit of its creditors;

 

(6)                                 a court of competent jurisdiction enters an order or decree under any Bankruptcy Law that remains unstayed and in effect for 90 days and that:

 

(A)                               is for relief against the Company as debtor in an involuntary case,

 

(B)                               appoints a Bankruptcy Custodian of the Company or a Bankruptcy Custodian for all or substantially all of the property of the Company, or

 

(C)                               orders the liquidation of the Company; or

 

(7)                                 any other Event of Default provided with respect to Securities of that series occurs.

 

The term “Bankruptcy Custodian” means any receiver, trustee, assignee, liquidator or similar official under any Bankruptcy Law.

 

The Trustee shall not be deemed to know or have notice of any Default or Event of Default unless a Responsible Officer of the Trustee shall have received written notice of any event which is in fact such a Default or Event of Default at the Corporate Trust Office of the Trustee, and such notice references the Securities and this Indenture.

 

When a Default is cured, it ceases.

 

Notwithstanding the foregoing provisions of this Section 6.01, if the principal of, premium (if any) or interest on or Additional Amounts with respect to any Security is payable in a currency or currencies (including a composite currency) other than Dollars and such currency or currencies are not available to the Company for making payment thereof due to the imposition of exchange controls or other circumstances beyond the control of the Company (a “Conversion Event”), the Company will be entitled to satisfy its obligations to Holders of the Securities by making such payment in Dollars in an amount equal to the Dollar equivalent of the amount payable in such other currency, as determined by the Company by reference to the Exchange Rate on the date of such payment, or, if such rate is not then available, on the basis of the most recently available Exchange Rate.  Notwithstanding the foregoing provisions of this Section 6.01, any payment made under such circumstances in Dollars where the required payment is in a currency other than Dollars will not constitute an Event of Default under this Indenture.

 

Promptly after the occurrence of a Conversion Event, the Company shall give written notice thereof to the Trustee; and the Trustee, promptly after receipt of such notice, shall give notice thereof in the manner provided in Section 11.02 to the Holders.  Promptly after the making of any payment in Dollars as a result of a Conversion Event, the Company shall give notice in the manner provided in Section 11.02 to the Holders, setting forth the applicable Exchange Rate and describing the calculation of such payments.

 

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A Default under clause (4) or (7) of this Section 6.01 is not an Event of Default until the Trustee notifies the Company, or the Holders of at least 25% in principal amount of the then outstanding Securities of the series affected by such Default (or, in the case of a Default under clause (4) of this Section 6.01, if outstanding Securities of other series are affected by such Default, then at least 25% in principal amount of the then outstanding Securities so affected) notify the Company and the Trustee, of the Default, and the Company fails to cure the Default within 90 days after receipt of the notice.  The notice must specify the Default, demand that it be remedied and state that the notice is a “Notice of Default.”

 

Section 6.02.                          Acceleration.

 

If an Event of Default with respect to any Securities of any series at the time outstanding (other than an Event of Default specified in clause (5) or (6) of Section 6.01) occurs and is continuing, the Trustee by notice to the Company, or the Holders of at least 25% in principal amount of the then outstanding Securities of the series affected by such Event of Default (or, in the case of an Event of Default described in clause (4) of Section 6.01, if outstanding Securities of other series are affected by such Event of Default, then at least 25% in principal amount of the then outstanding Securities so affected) by notice to the Company and the Trustee, may declare the principal of (or, if any such Securities are Original Issue Discount Securities, such portion of the principal amount as may be specified in the terms of that series) and all accrued and unpaid interest on all then outstanding Securities of such series or of all series, as the case may be, to be due and payable.  Upon any such declaration, the amounts due and payable on the Securities shall be due and payable immediately.  If an Event of Default specified in clause (5) or (6) of Section 6.01 occurs, such amounts shall ipso facto become and be immediately due and payable without any declaration, notice or other act on the part of the Trustee or any Holder.  The Holders of a majority in principal amount of the then outstanding Securities of the series affected by such Event of Default or all series, as the case may be, by written notice to the Trustee may rescind an acceleration and its consequences (other than nonpayment of principal of or premium or interest on or any Additional Amounts with respect to the Securities) if the rescission would not conflict with any judgment or decree and if all existing Events of Default with respect to Securities of that series (or of all series, as the case may be) have been cured or waived, except nonpayment of principal, premium, interest or any Additional Amounts that has become due solely because of the acceleration.

 

Section 6.03.                          Other Remedies.

 

If an Event of Default occurs and is continuing, the Trustee may pursue any available remedy to collect the payment of principal of, or premium, if any, or interest on the Securities or to enforce the performance of any provision of the Securities or this Indenture.

 

The Trustee may maintain a proceeding even if it does not possess any of the Securities or does not produce any of them in the proceeding.  A delay or omission by the Trustee or any Holder in exercising any right or remedy accruing upon an Event of Default shall not impair the right or remedy or constitute a waiver of or acquiescence in the Event of Default.  All remedies are cumulative to the extent permitted by law.

 

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Section 6.04.                          Waiver of Defaults.

 

Subject to Sections 6.07 and 9.02, the Holders of a majority in principal amount of the then outstanding Securities of any series or of all series (acting as one class) by notice to the Trustee may waive an existing or past Default or Event of Default with respect to such series or all series, as the case may be, and its consequences (including waivers obtained in connection with a tender offer or exchange offer for Securities of such series or all series or a solicitation of consents in respect of Securities of such series or all series, provided that in each case such offer or solicitation is made to all Holders of then outstanding Securities of such series or all series (but the terms of such offer or solicitation may vary from series to series)), except (1) a continuing Default or Event of Default in the payment of the principal of, or premium, if any, or interest on or any Additional Amounts with respect to any Security or (2) a continued Default in respect of a provision that under Section 9.02 cannot be amended or supplemented without the consent of each Holder affected.  Upon any such waiver, such Default shall cease to exist, and any Event of Default arising therefrom shall be deemed to have been cured for every purpose of this Indenture; but no such waiver shall extend to any subsequent or other Default or impair any right consequent thereon.

 

Section 6.05.                          Control by Majority.

 

With respect to Securities of any series, the Holders of a majority in principal amount of the then outstanding Securities of such series may direct in writing the time, method and place of conducting any proceeding for any remedy available to the Trustee or exercising any trust or power conferred on it relating to or arising under an Event of Default described in clause (1), (2), (3) or (7) of Section 6.01, and with respect to all Securities, the Holders of a majority in principal amount of all the then outstanding Securities affected may direct in writing the time, method and place of conducting any proceeding for any remedy available to the Trustee or exercising any trust or power conferred on it not relating to or arising under such an Event of Default.  However, the Trustee may refuse to follow any direction that conflicts with applicable law or this Indenture, that the Trustee determines may be unduly prejudicial to the rights of other Holders, or that may involve the Trustee in personal liability; provided, however, that the Trustee may take any other action deemed proper by the Trustee that is not inconsistent with such direction.  Prior to taking any action hereunder, the Trustee shall be entitled to indemnification satisfactory to it in its sole discretion from Holders directing the Trustee against all losses and expenses caused by taking or not taking such action.

 

Section 6.06.                          Limitations on Suits.

 

Subject to Section 6.07, a Holder of a Security of any series may pursue a remedy with respect to this Indenture or the Securities of such series only if:

 

(1)                                 the Holder gives to the Trustee written notice of a continuing Event of Default with respect to such series;

 

(2)                                 the Holders of at least 25% in principal amount of the then outstanding Securities of such series make a written request to the Trustee to pursue the remedy;

 

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(3)                                 such Holder or Holders offer to the Trustee indemnity satisfactory to the Trustee against any loss, liability or expense;

 

(4)                                 the Trustee does not comply with the request within 60 days after receipt of the request and the offer of indemnity; and

 

(5)                                 during such 60-day period the Holders of a majority in principal amount of the Securities of that series do not give the Trustee a direction inconsistent with the request.

 

A Holder may not use this Indenture to prejudice the rights of another Holder or to obtain a preference or priority over another Holder.

 

Section 6.07.                          Rights of Holders to Receive Payment.

 

Notwithstanding any other provision of this Indenture, the right of any Holder of a Security to receive payment of principal of and premium, if any, and interest on and any Additional Amounts with respect to the Security, on or after the respective due dates expressed in the Security, or to bring suit for the enforcement of any such payment on or after such respective dates, is absolute and unconditional and shall not be impaired or affected without the consent of the Holder.

 

Section 6.08.                          Collection Suit by Trustee.

 

If an Event of Default specified in clause (1) or (2) of Section 6.01 occurs and is continuing, the Trustee is authorized to recover judgment in its own name and as trustee of an express trust against the Company for the amount of principal, premium (if any), interest and any Additional Amounts remaining unpaid on the Securities of the series affected by the Event of Default, and interest on overdue principal and premium, if any, and, to the extent lawful, interest on overdue interest, and such further amount as shall be sufficient to cover the costs and expenses of collection, including the reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and counsel.

 

Section 6.09.                          Trustee May File Proofs of Claim.

 

The Trustee is authorized to file such proofs of claim and other papers or documents and to take such actions, including participating as a member, voting or otherwise, of any committee of creditors, as may be necessary or advisable to have the claims of the Trustee (including any claim for the reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and counsel) and the Holders allowed in any judicial proceedings relative to the Company or its creditors or properties and shall be entitled and empowered to collect, receive and distribute any money or other property payable or deliverable on any such claims and any Bankruptcy Custodian in any such judicial proceeding is hereby authorized by each Holder to make such payments to the Trustee, and in the event that the Trustee shall consent to the making of such payments directly to the Holders, to pay to the Trustee any amount due to it for the reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and counsel, and any other amounts due the Trustee under Section 7.07.  To the extent that the payment of any such compensation, expenses, disbursements and advances of the Trustee, its

 

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agents and counsel, and any other amounts due the Trustee under Section 7.07 out of the estate in any such proceeding, shall be denied for any reason, payment of the same shall be secured by a lien on, and shall be paid out of, any and all distributions, dividends, money, securities and other properties which the Holders of the Securities may be entitled to receive in such proceeding whether in liquidation or under any plan of reorganization or arrangement or otherwise.  Nothing herein contained shall be deemed to authorize the Trustee to authorize or consent to or accept or adopt on behalf of any Holder any plan of reorganization, arrangement, adjustment or composition affecting the Securities or the rights of any Holder thereof, or to authorize the Trustee to vote in respect of the claim of any Holder in any such proceeding.

 

Section 6.10.                          Priorities.

 

If the Trustee collects any money pursuant to this Article VI, it shall, subject to Article X, pay out the money in the following order:

 

First:                                             to the Trustee for amounts due under Section 7.07;

 

Second:                            to Holders for amounts due and unpaid on the Securities in respect of which or for the benefit of which such money has been collected, for principal, premium (if any), interest and any Additional Amounts ratably, without preference or priority of any kind, according to the amounts due and payable on such Securities for principal, premium (if any), interest and any Additional Amounts, respectively; and

 

Third:                                       to the Company.

 

The Trustee, upon prior written notice to the Company, may fix record dates and payment dates for any payment to Holders pursuant to this Article VI.

 

To the fullest extent allowed under applicable law, if for the purpose of obtaining a judgment against the Company in any court it is necessary to convert the sum due in respect of the principal of, premium (if any) or interest on or Additional Amounts with respect to the Securities of any series (the “Required Currency”) into a currency in which a judgment will be rendered (the “Judgment Currency”), the rate of exchange used shall be the rate at which in accordance with normal banking procedures the Trustee could purchase in The City of New York the Required Currency with the Judgment Currency on the Business Day in The City of New York next preceding that on which final judgment is given.  Neither the Company nor the Trustee shall be liable for any shortfall nor shall it benefit from any windfall in payments to Holders of Securities under this Section 6.10 caused by a change in exchange rates between the time the amount of a judgment against it is calculated as above and the time the Trustee converts the Judgment Currency into the Required Currency to make payments under this Section 6.10 to Holders of Securities, but payment of such judgment shall discharge all amounts owed by the Company on the claim or claims underlying such judgment.

 

Section 6.11.                          Undertaking for Costs.

 

In any suit for the enforcement of any right or remedy under this Indenture or in any suit against the Trustee for any action taken or omitted by it as a trustee, a court in its discretion may

 

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require the filing by any party litigant in the suit of an undertaking to pay the costs of the suit, and the court in its discretion may assess reasonable costs, including reasonable attorneys’ fees, against any party litigant in the suit, having due regard to the merits and good faith of the claims or defenses made by the party litigant.  This Section 6.11 does not apply to a suit by the Trustee, a suit by a Holder pursuant to Section 6.07, or a suit by a Holder or Holders of more than 10% in principal amount of the then outstanding Securities of any series.

 

ARTICLE VII

 

TRUSTEE

 

Section 7.01.                          Duties of Trustee.

 

(a)                                 If an Event of Default has occurred and is continuing, the Trustee shall exercise such of the rights and powers vested in it by this Indenture, and use the same degree of care and skill in such exercise, as a prudent person would exercise or use under the circumstances in the conduct of such person’s own affairs.

 

(b)                                 Except during the continuance of an Event of Default with respect to the Securities of any series:

 

(1)                                 the Trustee need perform only those duties that are specifically set forth in this Indenture and no others, and no implied covenants or obligations shall be read into this Indenture against the Trustee; and

 

(2)                                 in the absence of bad faith on its part, the Trustee may conclusively rely, as to the truth of the statements and the correctness of the opinions expressed therein, upon certificates or opinions furnished to the Trustee and conforming to the requirements of this Indenture.  However, the Trustee shall examine such certificates and opinions to determine whether, on their face, they appear to conform to the requirements of this Indenture.

 

(c)                                  The Trustee may not be relieved from liabilities for its own negligent action, its own negligent failure to act or its own willful misconduct, except that:

 

(1)                                 this paragraph does not limit the effect of Section 7.01(b);

 

(2)                                 the Trustee shall not be liable for any error of judgment made in good faith by a Responsible Officer, unless it is proved that the Trustee was negligent in ascertaining the pertinent facts; and

 

(3)                                 the Trustee shall not be liable with respect to any action it takes or omits to take in good faith in accordance with a direction received by it pursuant to Section 6.05.

 

(d)                                 Whether or not therein expressly so provided, every provision of this Indenture that in any way relates to the Trustee is subject to the provisions of this Section 7.01.

 

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(e)                                  No provision of this Indenture shall require the Trustee to expend or risk its own funds or incur any liability.  The Trustee may refuse to perform any duty or exercise any right or power unless it receives indemnity satisfactory to it against any loss, liability or expense.

 

(f)                                   The Trustee shall not be liable for interest on any money received by it except as the Trustee may agree in writing with the Company.  Money held in trust by the Trustee need not be segregated from other funds except to the extent required by law.  All money received by the Trustee shall, until applied as herein provided, be held in trust for the payment of the principal of, premium (if any) and interest on and Additional Amounts with respect to the Securities.

 

Section 7.02.                          Rights of Trustee.

 

(a)                                 The Trustee may conclusively rely on any document believed by it to be genuine and to have been signed or presented by the proper Person.  The Trustee need not investigate any fact or matter stated in the document.

 

(b)                                 Before the Trustee acts or refrains from acting, it may require instruction, an Officers’ Certificate or an Opinion of Counsel or both to be provided.  The Trustee shall not be liable for any action it takes or omits to take in good faith in reliance on such instruction, Officers’ Certificate or Opinion of Counsel.  The Trustee may consult at the Company’s expense with counsel of its selection and the advice of such counsel or any Opinion of Counsel shall be full and complete authorization and protection in respect of any action taken, suffered or omitted by it hereunder in good faith and in reliance thereon.

 

(c)                                  The Trustee may act through agents and shall not be responsible for the misconduct or negligence of any agent appointed with due care.

 

(d)                                 The Trustee shall not be liable for any action it takes or omits to take in good faith which it believes to be authorized or within its rights or powers conferred upon it by this Indenture.

 

(e)                                  Unless otherwise specifically provided in this Indenture, any demand, request, direction or notice from the Company shall be sufficient if signed by an Officer of the Company.

 

(f)                                   The Trustee shall not be obligated to make any investigation into the facts or matters stated in any resolution, certificate, statement, instrument, opinion, report, notice, request, direction, consent, order, bond, debenture, note, other evidence of indebtedness or other paper or document.

 

(g)                                  The rights, privileges, protections, immunities and benefits given to the Trustee, including, without limitation, its right to be indemnified, are extended to, and shall be enforceable by, the Trustee in each of its capacities hereunder, and each agent, custodian and other Person employed to act hereunder.

 

(h)                                 The Trustee may request that the Company deliver an Officers’ Certificate setting forth the names of individuals and/or titles of officers authorized at such time to take

 

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specified actions pursuant to this Indenture, which Officers’ Certificate may be signed by any person authorized to sign an Officers’ Certificate, including any person specified as so authorized in any such certificate previously delivered and not superseded.

 

(i)            In no event shall the Trustee be responsible or liable for special, indirect, punitive or consequential loss or damage of any kind whatsoever (including, but not limited to, loss of profit) irrespective of whether the Trustee has been advised of the likelihood of such loss or damage and regardless of the form of action.

 

Section 7.03.                          May Hold Securities.

 

The Trustee in its individual or any other capacity may become the owner or pledgee of Securities and may otherwise deal with the Company or any of its Affiliates with the same rights it would have if it were not Trustee.  Any Agent may do the same with like rights and duties.  However, the Trustee is subject to Sections 7.10 and 7.11.

 

Section 7.04.                          Trustee’s Disclaimer.

 

The Trustee makes no representation as to the validity or adequacy of this Indenture or the Securities, it shall not be accountable for the Company’s use of the proceeds from the Securities or any money paid to the Company or upon the Company’s direction under any provision hereof, it shall not be responsible for the use or application of any money received by any Paying Agent other than the Trustee and it shall not be responsible for any statement or recital herein or any statement in the Securities other than its certificate of authentication.

 

Section 7.05.                          Notice of Defaults.

 

If a Default or Event of Default with respect to the Securities of any series occurs and is continuing and it is known to the Trustee as set forth in the third paragraph of Section 6.01, the Trustee shall send to Holders of Securities of such series a notice of the Default or Event of Default within 90 days after it occurs.  Except in the case of a Default or Event of Default in payment of principal of, premium (if any) and interest on and Additional Amounts or any sinking fund installment with respect to the Securities of such series, the Trustee may withhold the notice if it in good faith determines that withholding the notice is in the interests of Holders of Securities of such series.

 

Section 7.06.                          Reports by Trustee to Holders.

 

Within 60 days after each September 15 of each year after the execution of this Indenture, the Trustee shall mail to Holders of a series and the Company a brief report dated as of such reporting date that complies with TIA Section 313(a); provided, however, that if no event described in TIA Section 313(a) has occurred within the twelve months preceding the reporting date with respect to a series, no report need be transmitted to Holders of such series.  The Trustee also shall comply with TIA Section 313(b).  The Trustee shall also transmit by mail all reports if and as required by TIA Sections 313(c) and 313(d).

 

A copy of each report at the time of its mailing to Holders of a series of Securities shall be filed by the Company with the SEC and each securities exchange, if any, on which the

 

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Securities of such series are listed.  The Company shall notify the Trustee if and when any series of Securities is listed on any securities exchange.

 

Section 7.07.                          Compensation and Indemnity.

 

The Company agrees to pay to the Trustee for its acceptance of this Indenture and services hereunder such compensation as the Company and the Trustee shall from time to time agree in writing.  The Trustee’s compensation shall not be limited by any law on compensation of a trustee of an express trust.  The Company agrees to reimburse the Trustee upon request for all reasonable disbursements, advances and expenses incurred by it.  Such expenses shall include the reasonable compensation, disbursements and expenses of the Trustee’s agents and counsel.

 

The Company hereby indemnifies the Trustee and any predecessor Trustee against any and all loss, liability, damage, claim or expense, including taxes (other than taxes based upon, measured by or determined by the income of the Trustee), incurred by it arising out of or in connection with the acceptance or administration of its duties under this Indenture, except as set forth in the next following paragraph.  The Trustee shall notify the Company promptly of any claim for which it may seek indemnity.  The Company shall defend the claim and the Trustee shall cooperate in the defense.  The Trustee may have separate counsel and the Company shall pay the reasonable fees and expenses of such counsel.  The Company need not pay for any settlement made without its consent.

 

The Company shall not be obligated to reimburse any expense or indemnify against any loss or liability incurred by the Trustee through the Trustee’s negligence or willful misconduct.

 

To secure the payment obligations of the Company in this Section 7.07, the Trustee shall have a lien prior to the Securities on all money or property held or collected by the Trustee, except that held in trust to pay principal of, premium (if any) and interest on and any Additional Amounts with respect to Securities of any series.  Such lien and the Company’s obligations under this Section 7.07 shall survive the satisfaction and discharge of this Indenture.

 

When the Trustee incurs expenses or renders services after an Event of Default specified in Section 6.01(5) or (6) occurs, the expenses and the compensation for the services are intended to constitute expenses of administration under any Bankruptcy Law.

 

Section 7.08.                          Replacement of Trustee.

 

A resignation or removal of the Trustee and appointment of a successor Trustee shall become effective only upon the successor Trustee’s acceptance of appointment as provided in this Section 7.08.

 

The Trustee may resign and be discharged at any time with respect to the Securities of one or more series by so notifying the Company.  The Holders of a majority in principal amount of the then outstanding Securities of any series may remove the Trustee with respect to the Securities of such series by so notifying the Trustee and the Company.  The Company may remove the Trustee if:

 

(1)           the Trustee fails to comply with Section 7.10;

 

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(2)           the Trustee is adjudged a bankrupt or an insolvent or an order for relief is entered with respect to the Trustee under any Bankruptcy Law;

 

(3)           a Bankruptcy Custodian or public officer takes charge of the Trustee or its property; or

 

(4)           the Trustee otherwise becomes incapable of acting.

 

If the Trustee resigns or is removed or if a vacancy exists in the office of Trustee for any reason, with respect to the Securities of one or more series, the Company shall promptly appoint a successor Trustee or Trustees with respect to the Securities of that or those series (it being understood that any such successor Trustee may be appointed with respect to the Securities of one or more or all of such series and that at any time there shall be only one Trustee with respect to the Securities of any particular series).  Within one year after the successor Trustee with respect to the Securities of any series takes office, the Holders of a majority in principal amount of the Securities of such series then outstanding may appoint a successor Trustee to replace the successor Trustee appointed by the Company.

 

If a successor Trustee with respect to the Securities of any series does not take office within 30 days after the retiring or removed Trustee resigns or is removed, the retiring or removed Trustee (at the expense of the Company), the Company or the Holders of at least 10% in principal amount of the then outstanding Securities of such series may petition any court of competent jurisdiction for the appointment of a successor Trustee with respect to the Securities of such series.

 

If the Trustee with respect to the Securities of a series fails to comply with Section 7.10, any Holder of Securities of such series may petition any court of competent jurisdiction for the removal of the Trustee and the appointment of a successor Trustee with respect to the Securities of such series.

 

In case of the appointment of a successor Trustee with respect to all Securities, each such successor Trustee shall deliver a written acceptance of its appointment to the retiring Trustee and to the Company.  Thereupon the resignation or removal of the retiring Trustee shall become effective, and the successor Trustee shall have all the rights, powers and duties of the retiring Trustee under this Indenture.  The successor Trustee shall mail a notice of its succession to Holders.  The retiring Trustee shall promptly transfer all property held by it as Trustee to the successor Trustee, subject to the lien provided for in Section 7.07.

 

In case of the appointment of a successor Trustee with respect to the Securities of one or more (but not all) series, the Company, the retiring Trustee and each successor Trustee with respect to the Securities of one or more (but not all) series shall execute and deliver an indenture supplemental hereto in which each successor Trustee shall accept such appointment and that (1) shall confer to each successor Trustee all the rights, powers and duties of the retiring Trustee with respect to the Securities of that or those series to which the appointment of such successor Trustee relates, (2) if the retiring Trustee is not retiring with respect to all Securities, shall confirm that all the rights, powers and duties of the retiring Trustee with respect to the Securities of that or those series as to which the retiring Trustee is not retiring shall continue to be vested in

 

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the retiring Trustee and (3) shall add to or change any of the provisions of this Indenture as shall be necessary to provide for or facilitate the administration of the trusts hereunder by more than one Trustee.  Nothing herein or in such supplemental indenture shall constitute such Trustees co-trustees of the same trust, and each such Trustee shall be trustee of a trust or trusts hereunder separate and apart from any trust or trusts hereunder administered by any other such Trustee.  Upon the execution and delivery of such supplemental indenture, the resignation or removal of the retiring Trustee shall become effective to the extent provided therein and each such successor Trustee shall have all the rights, powers and duties of the retiring Trustee with respect to the Securities of that or those series to which the appointment of such successor Trustee relates.  On request of the Company or any successor Trustee, such retiring Trustee shall transfer to such successor Trustee all property held by such retiring Trustee as Trustee with respect to the Securities of that or those series to which the appointment of such successor Trustee relates.  Such retiring Trustee shall, however, have the right to deduct its unpaid fees and expenses, including attorneys’ fees.

 

Notwithstanding replacement of the Trustee or Trustees pursuant to this Section 7.08, the obligations of the Company under Section 7.07 shall continue for the benefit of the retiring Trustee or Trustees.

 

Section 7.09.                          Successor Trustee by Merger, etc.

 

Subject to Section 7.10, if the Trustee consolidates, merges or converts into, or transfers all or substantially all of its corporate trust business to, another corporation, the successor corporation without any further act shall be the successor Trustee; provided, however, that in the case of a transfer of all or substantially all of its corporate trust business to another corporation, the transferee corporation expressly assumes all of the Trustee’s liabilities hereunder.

 

In case any Securities shall have been authenticated, but not delivered, by the Trustee then in office, any successor by merger, conversion or consolidation to such authenticating Trustee may adopt such authentication and deliver the Securities so authenticated; and in case at that time any of the Securities shall not have been authenticated, any successor to the Trustee may authenticate such Securities either in the name of any predecessor hereunder or in the name of the successor to the Trustee; and in all such cases such certificates shall have the full force which it is anywhere in the Securities or in this Indenture provided that the certificate of the Trustee shall have.

 

Section 7.10.                          Eligibility; Disqualification.

 

There shall at all times be a Trustee hereunder which shall be a corporation or banking association organized and doing business under the laws of the United States, any State thereof or the District of Columbia and authorized under such laws to exercise corporate trust power, shall be subject to supervision or examination by Federal or State (or the District of Columbia) authority and shall have, or be a subsidiary of a bank or bank holding company having, a combined capital and surplus of at least $50 million as set forth in its most recent published annual report of condition.

 

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The Indenture shall always have a Trustee who satisfies the requirements of TIA Sections 310(a)(1), 310(a)(2) and 310(a)(5).  The Trustee is subject to and shall comply with the provisions of TIA Section 310(b) during the period of time required by this Indenture.  Nothing in this Indenture shall prevent the Trustee from filing with the SEC the application referred to in the penultimate paragraph of TIA Section 310(b).

 

Section 7.11.                          Preferential Collection of Claims Against the Company.

 

The Trustee is subject to and shall comply with the provisions of TIA Section 311(a), excluding any creditor relationship listed in TIA Section 311(b).  A Trustee who has resigned or been removed shall be subject to TIA Section 311(a) to the extent indicated therein.

 

ARTICLE VIII

 

DISCHARGE OF INDENTURE

 

Section 8.01.                          Termination of the Company’s Obligations.

 

(a)           This Indenture shall cease to be of further effect with respect to the Securities of a series (except that the Company’s obligations under Section 7.07, the Trustee’s and Paying Agent’s obligations under Section 8.03 and the rights, powers, protections and privileges accorded the Trustee under Article VII shall survive), and the Trustee, on demand of the Company, shall execute proper instruments acknowledging the satisfaction and discharge of this Indenture with respect to the Securities of such series, when:

 

(1)           either:

 

(A)          all outstanding Securities of such series theretofore authenticated and issued (other than destroyed, lost or stolen Securities that have been replaced or paid) have been delivered to the Trustee for cancellation; or

 

(B)          all outstanding Securities of such series not theretofore delivered to the Trustee for cancellation:

 

(i)                                     have become due and payable, or

 

(ii)                                  will become due and payable at their Stated Maturity within one year, or

 

(iii)                               are to be called for redemption within one year under arrangements satisfactory to the Trustee for the giving of notice of redemption by the Trustee in the name, and at the expense, of the Company,

 

and, in the case of clause (i), (ii) or (iii) above, the Company has irrevocably deposited or caused to be deposited with the Trustee as funds (immediately available to the Holders in the case of clause (i)) in trust for such purpose (x) cash in an amount, or (y) Government Obligations, maturing as to principal and

 

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interest at such times and in such amounts as will ensure the availability of cash in an amount or (z) a combination thereof, which will be sufficient, in the opinion (in the case of clauses (y) and (z)) of a nationally recognized firm of independent public accountants expressed in a written certification thereof delivered to the Trustee, to pay and discharge the entire indebtedness on the Securities of such series for principal and interest to the date of such deposit (in the case of Securities which have become due and payable) or for principal, premium, if any, and interest to the Stated Maturity or Redemption Date, as the case may be; or

 

(C)          the Company has properly fulfilled such other means of satisfaction and discharge as is specified, as contemplated by Section 2.01, to be applicable to the Securities of such series;

 

(2)           the Company has paid or caused to be paid all other sums payable by it hereunder with respect to the Securities of such series; and

 

(3)           the Company has delivered to the Trustee an Officers’ Certificate stating that all conditions precedent to satisfaction and discharge of this Indenture with respect to the Securities of such series have been complied with, together with an Opinion of Counsel to the same effect.

 

(b)           Unless this Section 8.01(b) is specified as not being applicable to Securities of a series as contemplated by Section 2.01, the Company may, at its option, terminate certain of its obligations under this Indenture (“covenant defeasance”) with respect to the Securities of a series if:

 

(1)           the Company has irrevocably deposited or caused to be irrevocably deposited with the Trustee as trust funds in trust for the purpose of making the following payments, specifically pledged as security for and dedicated solely to the benefit of the Holders of Securities of such series, (i) money in the currency in which payment of the Securities of such series is to be made in an amount, or (ii) Government Obligations with respect to such series, maturing as to principal and interest at such times and in such amounts as will ensure the availability of money in the currency in which payment of the Securities of such series is to be made in an amount or (iii) a combination thereof, that is sufficient, in the opinion (in the case of clauses (ii) and (iii)) of a nationally recognized firm of independent public accountants expressed in a written certification thereof delivered to the Trustee, to pay the principal of and premium (if any) and interest on all Securities of such series on each date that such principal, premium (if any) or interest is due and payable and (at the Stated Maturity thereof or upon redemption as provided in Section 8.01(e)) to pay all other sums payable by it hereunder; provided that the Trustee shall have been irrevocably instructed to apply such money and/or the proceeds of such Government Obligations to the payment of said principal, premium (if any) and interest with respect to the Securities of such series as the same shall become due;

 

(2)           the Company has delivered to the Trustee an Officers’ Certificate stating that all conditions precedent to satisfaction and discharge of this Indenture with respect to

 

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the Securities of such series have been complied with, and an Opinion of Counsel to the same effect;

 

(3)           no Default or Event of Default with respect to the Securities of such series shall have occurred and be continuing on the date of such deposit;

 

(4)           the Company shall have delivered to the Trustee an Opinion of Counsel from a nationally recognized counsel acceptable to the Trustee or a tax ruling to the effect that the Holders will not recognize income, gain or loss for U.S. Federal income tax purposes as a result of the Company’s exercise of its option under this Section 8.01(b) and will be subject to U.S. Federal income tax on the same amount and in the same manner and at the same times as would have been the case if such option had not been exercised;

 

(5)           the Company has complied with any additional conditions specified pursuant to Section 2.01 to be applicable to the discharge of Securities of such series pursuant to this Section 8.01; and

 

(6)           such deposit and discharge shall not cause the Trustee to have a conflicting interest as defined in TIA Section 310(b).

 

In such event, this Indenture shall cease to be of further effect (except as set forth in this paragraph), and the Trustee, on demand of the Company, shall execute proper instruments acknowledging satisfaction and discharge under this Indenture.  However, the Company’s obligations in Sections 2.05, 2.06, 2.07, 2.08, 2.09, 4.01, 4.02, 7.07, 7.08 and 8.04, the Trustee’s and Paying Agent’s obligations in Section 8.03 and the rights, powers, protections and privileges accorded the Trustee under Article VII shall survive until all Securities of such series are no longer outstanding.  Thereafter, only the Company’s obligations in Section 7.07 and the Trustee’s and Paying Agent’s obligations in Section 8.03 shall survive with respect to Securities of such series.

 

After such irrevocable deposit made pursuant to this Section 8.01(b) and satisfaction of the other conditions set forth herein, the Trustee upon request shall acknowledge in writing the discharge of the Company’s obligations under this Indenture with respect to the Securities of such series except for those surviving obligations specified above.

 

In order to have money available on a payment date to pay principal of or premium (if any) or interest on the Securities, the Government Obligations shall be payable as to principal or interest on or before such payment date in such amounts as will provide the necessary money.  Government Obligations shall not be callable at the issuer’s option.

 

(c)           If the Company has previously complied or is concurrently complying with Section 8.01(b) (other than any additional conditions specified pursuant to Section 2.01 that are expressly applicable only to covenant defeasance) with respect to Securities of a series, then, unless this Section 8.01(c) is specified as not being applicable to Securities of such series as contemplated by Section 2.01, the Company may elect that its obligations to make payments with respect to Securities of such series be discharged (“legal defeasance”), if:

 

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(1)           no Default or Event of Default under clauses (5) and (6) of Section 6.01 shall have occurred at any time during the period ending on the 91st day after the date of deposit contemplated by Section 8.01(b) (it being understood that this condition shall not be deemed satisfied until the expiration of such period);

 

(2)           unless otherwise specified with respect to Securities of such series as contemplated by Section 2.01, the Company has delivered to the Trustee an Opinion of Counsel from a nationally recognized counsel acceptable to the Trustee to the effect referred to in Section 8.01(b)(4) with respect to such legal defeasance, which opinion is based on (i) a private ruling of the Internal Revenue Service addressed to the Company, (ii) a published ruling of the Internal Revenue Service pertaining to a comparable form of transaction or (iii) a change in the applicable federal income tax law (including regulations) after the date of this Indenture;

 

(3)           the Company has complied with any other conditions specified pursuant to Section 2.01 to be applicable to the legal defeasance of Securities of such series pursuant to this Section 8.01(c); and

 

(4)           the Company has delivered to the Trustee a Company Request requesting such legal defeasance of the Securities of such series and an Officers’ Certificate stating that all conditions precedent with respect to such legal defeasance of the Securities of such series have been complied with, together with an Opinion of Counsel to the same effect.

 

In such event, the Company will be discharged from its obligations under this Indenture and the Securities of such series to pay principal of, premium (if any) and interest on and any Additional Amounts with respect to Securities of such series, the Company’s obligations under Sections 4.01 and 4.02 shall terminate with respect to such Securities, and the entire indebtedness of the Company evidenced by such Securities shall be deemed paid and discharged.

 

(d)           If and to the extent additional or alternative means of satisfaction, discharge or defeasance of Securities of a series are specified to be applicable to such series as contemplated by Section 2.01, the Company may terminate any or all of its obligations under this Indenture with respect to Securities of a series and any or all of its obligations under the Securities of such series if it fulfills such other means of satisfaction and discharge as may be so specified, as contemplated by Section 2.01, to be applicable to the Securities of such series.

 

(e)           If Securities of any series subject to subsections (a), (b), (c) or (d) of this Section 8.01 are to be redeemed prior to their Stated Maturity, whether pursuant to any optional redemption provisions or in accordance with any mandatory or optional sinking fund provisions, the terms of the applicable trust arrangement shall provide for such redemption, and the Company shall make such arrangements as are reasonably satisfactory to the Trustee for the giving of notice of redemption by the Trustee in the name, and at the expense, of the Company.

 

Section 8.02.                          Application of Trust Money.

 

The Trustee or a trustee satisfactory to the Trustee and the Company shall hold in trust money or Government Obligations deposited with it pursuant to Section 8.01.  It shall apply the

 

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deposited money and the money from Government Obligations through the Paying Agent and in accordance with this Indenture to the payment of principal of, premium (if any) and interest on and any Additional Amounts with respect to the Securities of the series with respect to which the deposit was made.  Money and securities held in trust are not subject to Article X.

 

Section 8.03.                          Repayment to Company.

 

The Trustee and the Paying Agent shall promptly pay to the Company any excess money or Government Obligations (or proceeds therefrom) held by them at any time upon the written request of the Company.

 

Subject to the requirements of any applicable abandoned property laws, the Trustee and the Paying Agent shall pay to the Company upon written request any money held by them for the payment of principal, premium (if any), interest or any Additional Amounts that remain unclaimed for two years after the date upon which such payment shall have become due.  After payment to the Company, Holders entitled to the money must look to the Company for payment as general creditors unless an applicable abandoned property law designates another Person, and all liability of the Trustee and the Paying Agent with respect to such money shall cease.

 

Section 8.04.                          Reinstatement.

 

If the Trustee or the Paying Agent is unable to apply any money or Government Obligations deposited with respect to Securities of any series in accordance with Section 8.01 by reason of any legal proceeding or by reason of any order or judgment of any court or governmental authority enjoining, restraining or otherwise prohibiting such application, the obligations of the Company under this Indenture with respect to the Securities of such series and under the Securities of such series shall be revived and reinstated as though no deposit had occurred pursuant to Section 8.01 until such time as the Trustee or the Paying Agent is permitted to apply all such money or Government Obligations in accordance with Section 8.01; provided, however, that if the Company has made any payment of principal of, premium (if any) or interest on or any Additional Amounts with respect to any Securities because of the reinstatement of its obligations, the Company shall be subrogated to the rights of the Holders of such Securities to receive such payment from the money or Government Obligations held by the Trustee or the Paying Agent.

 

ARTICLE IX

 

SUPPLEMENTAL INDENTURES AND AMENDMENTS

 

Section 9.01.                          Without Consent of Holders.

 

The Company and the Trustee may amend or supplement this Indenture or the Securities or waive any provision hereof or thereof without the consent of any Holder:

 

(1)           to cure any ambiguity, omission, defect or inconsistency;

 

(2)           to comply with Section 5.01;

 

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(3)           to provide for uncertificated Securities in addition to or in place of certificated Securities, or to provide for the issuance of bearer Securities (with or without coupons);

 

(4)           to provide any security for, or to add any guarantees of or additional obligors on, any series of Securities;

 

(5)           to comply with any requirement in order to effect or maintain the qualification of this Indenture under the TIA;

 

(6)           to add to the covenants of the Company for the benefit of the Holders of all or any series of Securities (and if such covenants are to be for the benefit of less than all series of Securities, stating that such covenants are expressly being included solely for the benefit of such series), or to surrender any right or power herein conferred upon the Company;

 

(7)           to add any additional Events of Default with respect to all or any series of the Securities (and, if any Event of Default is applicable to less than all series of Securities, specifying the series to which such Event of Default is applicable);

 

(8)           to change or eliminate any of the provisions of this Indenture; provided that any such change or elimination shall become effective only when there is no outstanding Security of any series created prior to the execution of such amendment or supplemental indenture that is adversely affected in any material respect by such change in or elimination of such provision;

 

(9)           to establish the form or terms of Securities of any series as permitted by Section 2.01;

 

(10)         to supplement any of the provisions of this Indenture to such extent as shall be necessary to permit or facilitate the defeasance and discharge of any series of Securities pursuant to Section 8.01; provided, however, that any such action shall not adversely affect the interest of the Holders of Securities of such series or any other series of Securities in any material respect; or

 

(11)         to evidence and provide for the acceptance of appointment hereunder by a successor Trustee with respect to the Securities of one or more series and to add to or change any of the provisions of this Indenture as shall be necessary to provide for or facilitate the administration of the trusts hereunder by more than one Trustee, pursuant to the requirements of Section 7.08.

 

Upon the request of the Company, accompanied by a Board Resolution, and upon receipt by the Trustee of the documents described in Section 9.06, the Trustee shall, subject to Section 9.06, join with the Company in the execution of any supplemental indenture authorized or permitted by the terms of this Indenture and make any further appropriate agreements and stipulations that may be therein contained.

 

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Section 9.02.                          With Consent of Holders.

 

Except as provided below in this Section 9.02, the Company and the Trustee may amend or supplement this Indenture with the written consent (including consents obtained in connection with a tender offer or exchange offer for Securities of any one or more series or all series or a solicitation of consents in respect of Securities of any one or more series or all series, provided that in each case such offer or solicitation is made to all Holders of then outstanding Securities of each such series (but the terms of such offer or solicitation may vary from series to series)) of the Holders of at least a majority in principal amount of the then outstanding Securities of all series affected by such amendment or supplement (acting as one class).

 

Upon the request of the Company, accompanied by a Board Resolution, and upon the filing with the Trustee of evidence of the consent of the Holders as aforesaid, and upon receipt by the Trustee of the documents described in Section 9.06, the Trustee shall, subject to Section 9.06, join with the Company in the execution of such amendment or supplemental indenture.

 

It shall not be necessary for the consent of the Holders under this Section 9.02 to approve the particular form of any proposed amendment, supplement or waiver, but it shall be sufficient if such consent approves the substance thereof.

 

The Holders of a majority in principal amount of the then outstanding Securities of one or more series or of all series may waive compliance in a particular instance by the Company with any provision of this Indenture with respect to Securities of such series (including waivers obtained in connection with a tender offer or exchange offer for Securities of such series or a solicitation of consents in respect of Securities of such series, provided that in each case such offer or solicitation is made to all Holders of then outstanding Securities of such series (but the terms of such offer or solicitation may vary from series to series)).

 

However, without the consent of each Holder affected, an amendment, supplement or waiver under this Section 9.02 may not:

 

(1)           reduce the amount of Securities whose Holders must consent to an amendment, supplement or waiver;

 

(2)           reduce the rate of or change the time for payment of interest, including default interest, on any Security;

 

(3)           reduce the principal of, any premium on or any mandatory sinking fund payment with respect to, or change the Stated Maturity of, any Security or reduce the amount of the principal of an Original Issue Discount Security that would be due and payable upon a declaration of acceleration of the Maturity thereof pursuant to Section 6.02;

 

(4)           reduce the premium, if any, payable upon the redemption of any Security or change the time at which any Security may or shall be redeemed;

 

(5)           change any obligation of the Company to pay Additional Amounts with respect to any Security;

 

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(6)           change the coin or currency or currencies (including composite currencies) in which any Security or any premium, interest or Additional Amounts with respect thereto are payable;

 

(7)           impair the right to institute suit for the enforcement of any payment of principal of, premium (if any) or interest on or any Additional Amounts with respect to any Security pursuant to Sections 6.07 and 6.08, except as limited by Section 6.06;

 

(8)           make any change in the percentage of principal amount of Securities necessary to waive compliance with certain provisions of this Indenture pursuant to Section 6.04 or 6.07 or make any change in this sentence of Section 9.02;

 

(9)           modify the provisions of this Indenture with respect to the subordination of any Security in a manner adverse to the Holder thereof; or

 

(10)         waive a continuing Default or Event of Default in the payment of principal of, premium (if any) or interest on or Additional Amounts with respect to the Securities.

 

An amendment under this Section 9.02 may not make any change that adversely affects the rights under Article X of any holder of an issue of Senior Debt unless the holders of the issue pursuant to its terms consent to the change.

 

A supplemental indenture that changes or eliminates any covenant or other provision of this Indenture which has expressly been included solely for the benefit of one or more particular series of Securities, or which modifies the rights of the Holders of Securities of such series with respect to such covenant or other provision, shall be deemed not to affect the rights under this Indenture of the Holders of Securities of any other series.

 

The right of any Holder to participate in any consent required or sought pursuant to any provision of this Indenture (and the obligation of the Company to obtain any such consent otherwise required from such Holder) may be subject to the requirement that such Holder shall have been the Holder of record of any Securities with respect to which such consent is required or sought as of a date identified by the Company in a notice furnished to Holders in accordance with the terms of this Indenture.

 

After an amendment, supplement or waiver under this Section 9.02 becomes effective, the Company shall mail to the Holders of each Security affected thereby a notice briefly describing the amendment, supplement or waiver.  Any failure of the Company to mail such notice, or any defect therein, shall not, however, in any way impair or affect the validity of any such amendment, supplement or waiver.

 

Section 9.03.                          Compliance with Trust Indenture Act.

 

Every amendment or supplement to this Indenture or the Securities shall comply in form and substance with the TIA as then in effect.

 

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Section 9.04.                          Revocation and Effect of Consents.

 

Until an amendment, supplement or waiver becomes effective, a consent to it by a Holder is a continuing consent by the Holder and every subsequent Holder of a Security or portion of a Security that evidences the same debt as the consenting Holder’s Security, even if notation of the consent is not made on any Security.  However, any such Holder or subsequent Holder may revoke the consent as to his or her Security or portion of a Security if the Trustee receives written notice of revocation before a date and time therefor identified by the Company in a notice furnished to such Holder in accordance with the terms of this Indenture or, if no such date and time shall be identified, the date the amendment, supplement or waiver becomes effective.  An amendment, supplement or waiver becomes effective in accordance with its terms and thereafter binds every Holder.

 

The Company may, but shall not be obligated to, fix a record date (which need not comply with TIA Section 316(c)) for the purpose of determining the Holders entitled to consent to any amendment, supplement or waiver or to take any other action under this Indenture.  If a record date is fixed, then notwithstanding the provisions of the immediately preceding paragraph, those Persons who were Holders at such record date (or their duly designated proxies), and only those Persons, shall be entitled to consent to such amendment, supplement or waiver or to revoke any consent previously given, whether or not such Persons continue to be Holders after such record date.  No consent shall be valid or effective for more than 90 days after such record date unless consents from Holders of the principal amount of Securities required hereunder for such amendment or waiver to be effective shall have also been given and not revoked within such 90-day period.

 

After an amendment, supplement or waiver becomes effective, it shall bind every Holder, unless it is of the type described in any of clauses (1) through (9) of Section 9.02.  In such case, the amendment, supplement or waiver shall bind each Holder who has consented to it and every subsequent Holder that evidences the same debt as the consenting Holder’s Security.

 

Section 9.05.                          Notation on or Exchange of Securities.

 

If an amendment or supplement changes the terms of an outstanding Security, the Company may require the Holder of the Security to deliver it to the Trustee.  The Trustee may place an appropriate notation on the Security at the request of the Company regarding the changed terms and return it to the Holder.  Alternatively, if the Company so determines, the Company in exchange for the Security shall issue and the Trustee shall authenticate a new Security that reflects the changed terms.  Failure to make the appropriate notation or to issue a new Security shall not affect the validity of such amendment or supplement.

 

Securities of any series authenticated and delivered after the execution of any amendment or supplement may, and shall if required by the Trustee, bear a notation in form approved by the Trustee as to any matter provided for in such amendment or supplement.

 

Section 9.06.                          Trustee to Sign Amendments, etc.

 

The Trustee shall sign any amendment or supplement authorized pursuant to this Article IX if the amendment or supplement does not adversely affect the rights, duties, liabilities or

 

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immunities of the Trustee.  If it does, the Trustee may, but need not, sign it.  In signing or refusing to sign such amendment or supplement, the Trustee shall be entitled to receive, and, subject to Section 7.01, shall be fully protected in relying upon, an Officers’ Certificate and an Opinion of Counsel provided at the expense of the Company as conclusive evidence that such amendment or supplement is authorized or permitted by this Indenture, that it is not inconsistent herewith, and that it will be valid and binding upon the Company in accordance with its terms.

 

ARTICLE X

 

SUBORDINATION OF SECURITIES

 

Section 10.01.                   Securities Subordinated to Senior Debt.

 

The Company and each Holder of a Security of a series, by his acceptance thereof, agree that (a) the payment of the principal of, premium (if any) and interest on and any Additional Amounts with respect to each and all the Securities of such series and (b) any other payment in respect of the Securities of such series, including on account of the acquisition or redemption of Securities of such series by the Company, is subordinated, to the extent and in the manner provided in this Article X, to the prior payment in full of all Senior Debt of the Company, whether outstanding at the date of this Indenture or thereafter created, incurred, assumed or guaranteed, and that these subordination provisions are for the benefit of the holders of Senior Debt.

 

This Article X shall constitute a continuing offer to all Persons who, in reliance upon such provisions, become holders of, or continue to hold, Senior Debt, and such provisions are made for the benefit of the holders of Senior Debt, and such holders are made obligees hereunder and any one or more of them may enforce such provisions.

 

Section 10.02.                   No Payment on Securities in Certain Circumstances.

 

(a)           Unless otherwise provided with respect to the Securities of a series as contemplated by Section 2.01, no payment shall be made by or on behalf of the Company on account of the principal of, premium (if any) or interest on or any Additional Amounts with respect to the Securities of any series or to acquire any Securities of such series (including any repurchases of Securities of such series pursuant to the provisions thereof at the option of the Holder thereof) for cash or property, or on account of any redemption provisions of Securities of such series, in the event of default in payment of any principal of, premium (if any) or interest on any Senior Debt of the Company when the same becomes due and payable, whether at maturity or at a date fixed for prepayment or by acceleration of maturity or otherwise (a “Payment Default”), unless and until such Payment Default has been cured or waived or otherwise has ceased to exist or such Senior Debt shall have been discharged or paid in full.

 

(b)           In furtherance of the provisions of Section 10.01, in the event that, notwithstanding the foregoing provisions of this Section 10.02, any payment or distribution of assets of the Company shall be received by the Trustee, the Paying Agent or the Holders of Securities of any series at a time when such payment or distribution was prohibited by the provisions of this Section 10.02, then, unless such payment or distribution is no longer prohibited

 

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by this Section 10.02, such payment or distribution (subject to the provisions of Section 10.07) shall be received and held in trust by the Trustee, the Paying Agent or such Holder for the benefit of the holders of Senior Debt of the Company, and shall be paid or delivered by the Trustee, the Paying Agent or such Holders, as the case may be, to the holders of Senior Debt of the Company remaining unpaid or unprovided for or their representative or representatives, or to the trustee or trustees under any indenture pursuant to which any instruments evidencing such Senior Debt of the Company may have been issued, ratably, according to the aggregate amounts remaining unpaid on account of such Senior Debt of the Company held or represented by each, for application to the payment of all Senior Debt in full after giving effect to all concurrent payments and distributions to or for the holders of such Senior Debt.

 

Section 10.03.                   Securities Subordinated to Prior Payment of All Senior Debt on Dissolution, Liquidation or Reorganization.

 

Upon any distribution of assets of the Company or upon any dissolution, winding up, total or partial liquidation or reorganization of the Company, whether voluntary or involuntary, in bankruptcy, insolvency, receivership or similar proceeding or upon assignment for the benefit of creditors:

 

(1)           the holders of all Senior Debt of the Company shall first be entitled to receive payments in full before the Holders of Securities of any series are entitled to receive any payment on account of the principal of, premium (if any) or interest on or any Additional Amounts with respect to Securities of such series;

 

(2)           any payment or distribution of assets of the Company of any kind or character, whether in cash, property or securities, to which the Holders of Securities of any series or the Trustee on behalf of such Holders would be entitled, except for the provisions of this Article X, shall be paid by the liquidating trustee or agent or other Person making such a payment or distribution directly to the holders of such Senior Debt or their representative, ratably according to the respective amounts of Senior Debt held or represented by each, to the extent necessary to make payment in full of all such Senior Debt remaining unpaid after giving effect to all concurrent payments and distributions to the holders of such Senior Debt; and

 

(3)           in the event that, notwithstanding the foregoing, any payment or distribution of assets of the Company of any kind or character, whether in cash, property or securities, shall be received by the Trustee or the Holders of Securities of any series or any Paying Agent (or, if the Company or any Subsidiary is acting as the Paying Agent, money for any such payment or distribution shall be segregated or held in trust) on account of the principal of, premium (if any) or interest on or any Additional Amounts with respect to the Securities of such series before all Senior Debt of the Company is paid in full, such payment or distribution (subject to the provisions of Section 10.07) shall be received and held in trust by the Trustee or such Holder or Paying Agent for the benefit of the holders of such Senior Debt, or their respective representatives, ratably according to the respective amounts of such Senior Debt held or represented by each, to the extent necessary to make payment as provided herein of all such Senior Debt remaining unpaid after giving effect to all concurrent payments and distributions and all provisions therefor

 

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to or for the holders of such Senior Debt, but only to the extent that as to any holder of such Senior Debt, as promptly as practical following notice from the Trustee to the holders of such Senior Debt that such prohibited payment has been received by the Trustee, Holder(s) or Paying Agent (or has been segregated as provided above), such holder (or a representative therefor) notifies the Trustee of the amounts then due and owing on such Senior Debt, if any, held by such holder and only the amounts specified in such notices to the Trustee shall be paid to the holders of such Senior Debt.

 

Section 10.04.                   Subrogation to Rights of Holders of Senior Debt.

 

Subject to the payment in full of all Senior Debt of the Company as provided herein, the Holders of the Securities of any series shall be subrogated (to the extent of the payments or distributions made to the holders of such Senior Debt pursuant to the provisions of this Article X) to the rights of the holders of such Senior Debt to receive payments or distributions of assets of the Company applicable to the Senior Debt until all amounts owing on the Securities of such series shall be paid in full.  For the purpose of such subrogation, no such payments or distributions to the holders of such Senior Debt by the Company, or by or on behalf of the Holders of the Securities of such series by virtue of this Article X, which otherwise would have been made to such Holders shall, as between the Company and such Holders, be deemed to be payment by the Company or on account of such Senior Debt, it being understood that the provisions of this Article X are and are intended solely for the purpose of defining the relative rights of the Holders of the Securities of a series, on the one hand, and the holders of such Senior Debt, on the other hand.

 

If any payment or distribution to which the Holders of the Securities would otherwise have been entitled but for the provisions of this Article X shall have been applied, pursuant to the provisions of this Article X, to the payment of amounts payable under Senior Debt of the Company, then such Holders shall be entitled to receive from the holders of such Senior Debt any payments or distributions received by such holders of Senior Debt in excess of the amount sufficient to pay all amounts payable under or in respect of such Senior Debt in full.

 

Section 10.05.                   Obligations of the Company Unconditional.

 

Nothing contained in this Article X or elsewhere in this Indenture or in the Securities is intended to or shall impair, as between the Company and the Holders of the Securities of any series, the obligation of the Company, which is absolute and unconditional, to pay to such Holders the principal of, premium (if any) and interest on and any Additional Amounts with respect to the Securities of such series as and when the same shall become due and payable in accordance with their terms, or is intended to or shall affect the relative rights of such Holders and creditors of the Company other than the holders of the Senior Debt, nor shall anything herein or therein prevent the Trustee or any Holder from exercising all remedies otherwise permitted by applicable law upon default under this Indenture, subject to the rights, if any, under this Article X, of the holders of Senior Debt in respect of cash, property or securities of the Company received upon the exercise of any such remedy.

 

Notwithstanding anything to the contrary in this Article X or elsewhere in this Indenture or in the Securities, upon any distribution of assets of the Company referred to in this Article X,

 

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the Trustee, subject to the provisions of Sections 7.01 and 7.02, and the Holders of the Securities shall be entitled to rely upon any order or decree made by any court of competent jurisdiction in which such dissolution, winding up, liquidation or reorganization proceedings are pending, or a certificate of the liquidating trustee or agent or other Person making any distribution to the Trustee or to such Holders for the purpose of ascertaining the Persons entitled to participate in such distribution, the holders of the Senior Debt and other Debt of the Company, the amount thereof or payable thereon, the amount or amounts paid or distributed thereon and all other facts pertinent thereto or to this Article X so long as such court has been apprised of the provisions of, or the order, decree or certificate makes reference to, the provisions of this Article X.

 

Section 10.06.                   Trustee Entitled to Assume Payments Not Prohibited in Absence of Notice.

 

The Trustee shall not at any time be charged with knowledge of the existence of any facts that would prohibit the making of any payment to or by the Trustee unless and until a Responsible Officer of the Trustee or any Paying Agent shall have received, no later than two Business Days prior to such payment, written notice thereof from the Company or from one or more holders of Senior Debt or from any representative thereof and, prior to the receipt of any such written notice, the Trustee, subject to the provisions of Sections 7.01 and 7.02, shall be entitled in all respects conclusively to assume that no such fact exists.

 

Section 10.07.                   Application by Trustee of Amounts Deposited with It.

 

Amounts deposited in trust with the Trustee pursuant to and in accordance with Article VIII shall be for the sole benefit of Holders of Securities of the series for the benefit of which such amounts were deposited, and, to the extent allocated for the payment of Securities of such series, shall not be subject to the subordination provisions of this Article X.  Otherwise, any deposit of assets with the Trustee or the Paying Agent (whether or not in trust) for the payment of principal of, premium (if any) or interest on or any Additional Amounts with respect to any Securities of any series shall be subject to the provisions of Sections 10.01, 10.02, 10.03 and 10.04; provided that if prior to two Business Days preceding the date on which by the terms of this Indenture any such assets may become distributable for any purpose (including, without limitation, the payment of either principal of, premium (if any) or interest on or any Additional Amounts with respect to any Security), a Responsible Officer of the Trustee or such Paying Agent shall not have received with respect to such assets the written notice provided for in Section 10.06, then the Trustee or such Paying Agent shall have full power and authority to receive such assets and to apply the same to the purpose for which they were received, and shall not be affected by any notice to the contrary that may be received by it on or after such date; and provided further that nothing contained in this Article X shall prevent the Company from making, or the Trustee from receiving or applying, any payment in connection with the redemption of Securities of a series if the first publication of notice of such redemption (whether by mail or otherwise in accordance with this Indenture) has been made, and the Trustee has received such payment from the Company, prior to the occurrence of any of the contingencies specified in Section 10.02 or 10.03.

 

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Section 10.08.                   Subordination Rights Not Impaired by Acts or Omissions of the  Company or Holders of Senior Debt.

 

No right of any present or future holders of any Senior Debt to enforce subordination provisions contained in this Article X shall at any time in any way be prejudiced or impaired by any act or failure to act on the part of the Company or by any act or failure to act, in good faith, by any such holder, or by any noncompliance by the Company with the terms of this Indenture, regardless of any knowledge thereof that any such holder may have or be otherwise charged with.  The holders of Senior Debt may extend, renew, modify or amend the terms of the Senior Debt or any security therefor and release, sell or exchange such security and otherwise deal freely with the Company, all without affecting the liabilities and obligations of the parties to this Indenture or the Holders of the Securities of any series.

 

Section 10.09.                   Trustee to Effectuate Subordination of Securities.

 

Each Holder of a Security of any series by his acceptance thereof authorizes and expressly directs the Trustee on his behalf to take such action as may be necessary or appropriate to effectuate the subordination provisions contained in this Article X and to protect the rights of the Holders of the Securities of such series pursuant to this Indenture, and appoints the Trustee his attorney-in-fact for such purpose, including, in the event of any dissolution, winding up, liquidation or reorganization of the Company (whether in bankruptcy, insolvency or receivership proceedings or upon an assignment for the benefit of creditors of the Company), the filing of a claim for the unpaid balance of his Securities in the form required in said proceedings and cause said claim to be approved.  If the Trustee does not file a proper claim or proof of debt in the form required in such proceeding prior to 30 days before the expiration of the time to file such claim or claims, then the holders of the Senior Debt or their representative is hereby authorized to have the right to file and is hereby authorized to file an appropriate claim for and on behalf of the Holders of Securities of such series.  Nothing contained herein shall be deemed to authorize the Trustee or the holders of Senior Debt or their representative to authorize or consent to or accept or adopt on behalf of any Holder of Securities of any series any plan of reorganization, arrangement, adjustment or composition affecting the Securities of such series or the rights of any Holder thereof, or to authorize the Trustee or the holders of Senior Debt or their representative to vote in respect of the claim of any Holder of the Securities of such series in any such proceeding.

 

Section 10.10.                   Right of Trustee to Hold Senior Debt.

 

The Trustee in its individual capacity shall be entitled to all of the rights set forth in this Article X in respect of any Senior Debt at any time held by it to the same extent as any other holder of Senior Debt, and nothing in this Indenture shall be construed to deprive the Trustee of any of its rights as such holder.

 

Section 10.11.                   Article X Not to Prevent Events of Default.

 

The failure to make a payment on account of principal of or premium (if any) or interest on the Securities of any series by reason of any provision of this Article X shall not be construed as preventing the occurrence of a Default or an Event of Default under Section 6.01 with respect

 

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to Securities of such series or in any way prevent the Holders of the Securities of such series from exercising any right hereunder other than the right to receive payment on the Securities of such series.

 

Section 10.12.                   No Fiduciary Duty of Trustee to Holders of Senior Debt.

 

The Trustee shall not be deemed to owe any fiduciary duty to the holders of Senior Debt, and shall not be liable to any such holders (other than for its willful misconduct or negligence) if it shall in good faith mistakenly pay over or distribute to the Holders of the Securities of any series or the Company or any other Person, cash, property or securities to which any holders of Senior Debt shall be entitled by virtue of this Article X or otherwise.  Nothing in this Section 10.12 shall affect the obligation of any other such Person to hold such payment for the benefit of, and to pay such payment over to, the holders of Senior Debt or their representative.

 

Section 10.13.                   Article Applicable to Paying Agent.

 

In case at any time any Paying Agent other than the Trustee shall have been appointed by the Company and be then acting hereunder, the term “Trustee” as used in this Article X shall in such case (unless the context shall otherwise require) be construed as extending to and including such Paying Agent within its meaning as fully for all intents and purposes as if such Paying Agent were named in this Article X in addition to or in place of the Trustee; provided, however, that this Section 10.13 shall not apply to the Company or any Subsidiary if the Company or such Subsidiary acts as Paying Agent.

 

ARTICLE XI

 

MISCELLANEOUS

 

Section 11.01.                   Trust Indenture Act Controls.

 

If any provision of this Indenture limits, qualifies or conflicts with the duties imposed by operation of TIA Section 318(c), the imposed duties shall control.

 

Section 11.02.                   Notices.

 

Any notice or communication by the Company or the Trustee to the other is duly given if in writing and delivered in person or mailed by first-class mail (registered or certified, return receipt requested), telex, facsimile or overnight air courier guaranteeing next day delivery, to the other’s address:

 

If to the Company:

 

	
ConocoPhillips
    
	
600 North   Dairy Ashford
    
	
Houston,   Texas 77079
    
	
Attn:
    	
General Counsel
    
	
Telephone:
    	
(281) 293-1000
    
	
Facsimile:
    	
(281) 293-1600
    

 

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If to the Trustee:

 

The Bank of New York

[601 Travis Street, Suite 1600

Houston, Texas 77002

Attention: Corporate Trust Administration

Telephone: 
 Fax:                        ]

 

The Company or the Trustee by notice to the other may designate additional or different addresses for subsequent notices or communications.

 

All notices and communications shall be deemed to have been duly given:  at the time delivered by hand, if personally delivered; five Business Days after being deposited in the mail, postage prepaid, if mailed; when answered back, if telexed; when receipt acknowledged, if by facsimile; and the next Business Day after timely delivery to the courier, if sent by overnight air courier guaranteeing next day delivery.

 

Any notice or communication to a Holder shall be mailed by first-class mail, postage prepaid, to the Holder’s address shown on the register kept by the Registrar.  Failure to mail a notice or communication to a Holder or any defect in it shall not affect its sufficiency with respect to other Holders.

 

If a notice or communication is mailed in the manner provided above within the time prescribed, it is duly given, whether or not the addressee receives it, except in the case of notice to the Trustee, it is duly given only when received.

 

If the Company mails a notice or communication to Holders, it shall mail a copy to the Trustee and each Agent at the same time.

 

All notices or communications, including without limitation notices to the Trustee or the Company by Holders, shall be in writing, except as otherwise set forth herein.

 

The Trustee agrees to accept and act upon notice, instructions or directions pursuant to this Indenture sent by unsecured e-mail, pdf, facsimile transmission or other similar unsecured electronic methods.  If the Company elects to give the Trustee e-mail or facsimile notice, instructions or directions (or notice, instructions or directions by a similar electronic method) and the Trustee in its discretion elects to act upon such notice, instructions or directions, the Trustee’s reasonable understanding of such notice, instructions or directions shall be deemed controlling.  Except as provided in Section 7.01(c), the Trustee shall not be liable for any losses, costs or expenses arising directly or indirectly from the Trustee’s reliance upon and compliance with such notice, instructions or directions.  The Company agrees to assume all risks (except as provided in Section 7.01(c)) arising out of the use of such electronic methods to submit any notice, instructions or directions to the Trustee, including without limitation the risk of the Trustee acting on unauthorized instructions, and the risk or interception and misuse by third parties.

 

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In case by reason of the suspension of regular mail service, or by reason of any other cause, it shall be impossible to mail any notice required by this Indenture, then such method of notification as shall be made with the approval of the Trustee shall constitute a sufficient mailing of such notice.

 

Section 11.03.                   Communication by Holders with Other Holders.

 

Holders may communicate pursuant to TIA Section 312(b) with other Holders with respect to their rights under this Indenture or the Securities.  The Company, the Trustee, the Registrar and anyone else shall have the protection of TIA Section 312(c).

 

Section 11.04.                   Certificate and Opinion as to Conditions Precedent.

 

Upon any request or application by the Company to the Trustee to take any action under this Indenture, the Company shall, if requested by the Trustee, furnish to the Trustee at the expense of the Company:

 

(1)           an Officers’ Certificate (which shall include the statements set forth in Section 11.05) stating that, in the opinion of the signers, all conditions precedent and covenants, if any, provided for in this Indenture relating to the proposed action have been complied with; and

 

(2)           an Opinion of Counsel (which shall include the statements set forth in Section 11.05) stating that, in the opinion of such counsel, all such conditions precedent and covenants have been complied with.

 

Section 11.05.                   Statements Required in Certificate or Opinion.

 

Each certificate or opinion with respect to compliance with a condition or covenant provided for in this Indenture (other than a certificate provided pursuant to TIA Section 314(a)(4)) shall comply with the provisions of TIA Section 314(e) and shall include:

 

(1)           a statement that the Person making such certificate or opinion has read such covenant or condition;

 

(2)           a brief statement as to the nature and scope of the examination or investigation upon which the statements or opinions contained in such certificate or opinion are based;

 

(3)           a statement that, in the opinion of such Person, he or she has made such examination or investigation as is necessary to enable

 

(4)           him or her to express an informed opinion as to whether or not such covenant or condition has been complied with; and

 

(5)           a statement as to whether or not, in the opinion of such Person, such condition or covenant has been complied with.

 

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Section 11.06.                   Rules by Trustee and Agents.

 

The Trustee may make reasonable rules for action by or at a meeting of Holders.  The Registrar or the Paying Agent may make reasonable rules and set reasonable requirements for its functions.

 

Section 11.07.                   Legal Holidays.

 

If a payment date is a Legal Holiday at a Place of Payment, payment may be made at that place on the next succeeding day that is not a Legal Holiday, and no interest shall accrue for the intervening period.

 

Section 11.08.                   No Recourse Against Others.

 

A director, officer, employee, stockholder, partner or other owner of the Company or the Trustee, as such, shall not have any liability for any obligations of the Company under the Securities or for any obligations of the Company or the Trustee under this Indenture or for any claim based on, in respect of or by reason of such obligations or their creation.  Each Holder by accepting a Security waives and releases all such liability.  The waiver and release shall be part of the consideration for the issue of Securities.

 

Section 11.09.                   Governing Law.

 

THIS INDENTURE AND THE SECURITIES SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT GIVING EFFECT TO APPLICABLE PRINCIPLES OF CONFLICTS OF LAWS TO THE EXTENT THE LAWS OF ANOTHER JURISDICTION WOULD BE REQUIRED THEREBY.

 

Section 11.10.                   Waiver of Jury Trial.

 

EACH OF THE COMPANY AND THE TRUSTEE HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS INDENTURE, THE NOTES OR THE TRANSACTION CONTEMPLATED HEREBY.

 

Section 11.11.                   No Adverse Interpretation of Other Agreements.

 

This Indenture may not be used to interpret another indenture, loan or debt agreement of the Company or any Subsidiary.  Any such indenture, loan or debt agreement may not be used to interpret this Indenture.

 

Section 11.12.                   Successors.

 

All agreements of the Company in this Indenture and the Securities shall bind its successors.  All agreements of the Trustee in this Indenture shall bind its successors.

 

55

 

Section 11.13.                   Severability.

 

In case any provision in this Indenture or in the Securities shall be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions shall, to the fullest extent permitted by applicable law, not in any way be affected or impaired thereby.

 

Section 11.14.                   Counterpart Originals.

 

The parties may sign any number of copies of this Indenture.  Each signed copy shall be an original, but all of them together represent the same agreement.

 

Section 11.15.                   Table of Contents, Headings, etc.

 

The table of contents, cross-reference table and headings of the Articles and Sections of this Indenture have been inserted for convenience of reference only, are not to be considered a part hereof and shall in no way modify or restrict any of the terms or provisions hereof.

 

Section 11.16.                   Force Majeure.

 

In no event shall the Trustee be responsible or liable for any failure or delay in the performance of its obligations hereunder arising out of or caused by, directly or indirectly, forces beyond its control, including, without limitation strikes, work stoppages, accidents, acts of war or terrorism, civil or military disturbances, nuclear or natural catastrophes or acts of God, and interruptions, loss or malfunctions of utilities, communications or computer (software and hardware) services; it being understood that the Trustee shall use reasonable efforts which are consistent with accepted practices in the banking industry to resume performance as soon as practicable under the circumstances.

 

Section 11.17.                   Tax Matters.

 

In order to comply with applicable tax laws (inclusive of rules, regulations and interpretations promulgated by competent authorities) related to this Indenture in effect from time to time (“Applicable Law”) that a foreign financial institution, the Company, trustee, paying agent or other party is or has agreed to be subject to, the Company agrees (i) to provide to the Trustee with any information available to the Company about the parties and/or transactions (including any modification to the terms of such transactions) so that the Trustee can determine whether they have tax related obligations under Applicable Law, (ii) that the Trustee shall be entitled to make any withholding or deduction from payments to the extent necessary to comply with Applicable Law for which the Trustee shall not have any liability, and (iii) to hold harmless the Trustee for any losses it may suffer due to the actions it takes to comply with Applicable Law. The terms of this Section 11.17 shall survive the satisfaction and discharge of this Indenture.

 

56

 

IN WITNESS WHEREOF, the parties hereto have caused this Indenture to be duly executed as of the day and year first above written.

 

	
 
    	
CONOCOPHILLIPS
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
THE BANK OF NEW YORK   MELLON TRUST COMPANY, N.A.,
    
	
 
    	
as Trustee
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    

 

57EX-10.12

 EXHIBIT 10.12 

[*]  = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS
DOCUMENT, MARKED BY BRACKETS, IS FILED WITH THE SECURITIES AND EXCHANGE
COMMISSION PURSUANT TO RULE 406 OF THE SECURITIES ACT OF 1933, AS AMENDED. 

MASTER PURCHASE AGREEMENT FOR 10 GIGABIT ETHERNET PHYSICAL LAYER DEVICES 

Agreement #: ___________________ 
 Effective
Date:                     1/15/2009 
 Expiration
Date:                    1/15/2019 
 CNDA
#:                      4043669 
  

	BUYER:	Intel Corporation (and all Intel Subsidiaries and Affiliates, hereinafter “Buyer” or “Intel”). 

	    	2200 Mission College Blvd 

	    	Santa Clara, CA 95054-1549 

  

	SUPPLIER:	Aquantia Corporation (hereinafter referred to as “Supplier” or “Aquantia”), 

	    	700 Tasman Drive 

	    	Milpitas, CA 95035 

	    	Tel 408.228.8300 

  

					
	Addenda attached hereto and	 	x	  	Terms and Conditions of Purchase Agreement Services
	incorporated herein by reference	 	x	  	A. Statement of Work
	(Mark “X” where applicable):	 	x	  	B. Performance Standards
		 	x	  	C. Supplemental Provisions (Quality)
		 	x	  	D. Protection of Intel’s Assets

 Recitals 
 This Master
Purchase Agreement for 10 Gigabit Ethernet Physical Layer Devices (“Agreement”) is intended by Buyer and Supplier to provide the governing terms and conditions under which: 

 

	1.	 Buyer may procure Items consisting of specific types and amounts of 10 Gigabit Ethernet Physical Layer Devices from Supplier at various times over the term
of the Agreement. 

	2.	Supplier will perform custom work for Buyer relative to the Items. 

 This Agreement shall support an
unlimited number of Project Statements over its term, each of which will specify the unit pricing, scope of work, and performance standards of a specific type of 10 Gigabit Ethernet Physical Layer Device that Buyer intends to purchase from Supplier.
Such Project Statements shall be compiled into Addendum A and referenced in consecutive order (e.g., Project Statement #1 of Addendum A, Project Statement #2 of Addendum A, etc.). All Purchase Orders issued to Supplier by Buyer during the term of
this Agreement shall be governed only by the Terms and Conditions of this Agreement notwithstanding any preprinted terms and conditions on Supplier’s acknowledgment or Buyer’s Purchase Order. Any additional or different terms in
Supplier’s documents are hereby deemed to be material alterations and notice of objection to and rejection of them is hereby given by Buyer. Any additional or different terms in Buyer’s documents are hereby deemed to be material
alterations and notice of objection to and rejection of them is hereby given by Supplier. When Buyer is a subsidiary of Intel, the obligations of the parties run between such subsidiary and the Supplier, and not between Intel Corporation and the
Supplier, but any breach by such Intel Subsidiary shall be deemed a breach by Intel Corporation itself. 
  

									
	INTEL	 		 	AQUANTIA CORPORATION
					
	Signature:	 	/s/ Tom Swinford	 		 	Signature:	 	/s/ Phil Delansay

									
					
	Printed Name:	 	Tom Swinford	 		 	Printed Name:	 	Phil Delansay

									
					
	Title:	 	VP and GM, LAN Access Davison	 		 	Title:	 	President & CEO

									
					
	Date:	 	1/15/2009	 		 	Date:	 	January 15, 2009

 
 Terms and Conditions of Purchase Agreement — Goods 

 

	1.	 DEFINITIONS 

	A.	 “Hazardous Materials” are or contain dangerous goods, chemicals, contaminants, substances, pollutants, or any other materials that are defined as
hazardous by relevant local, state, national, or international law, regulations, and standards. 

	B.	 “Items” means the goods that Supplier is to provide to Buyer as set forth on Addendum A. Any Custom Item shall be indicated by an asterisk
(*) on Addendum A or shall otherwise be noted as a Custom Item. 

	C.	 “Purchase Order” is Buyer’s document setting forth specific line Items ordered and Release information. 

	D.	 “Release” means Buyer’s authorization to Supplier to ship in accordance with the Buyer’s Purchase Order, and authorizing Supplier to ship
a definite quantity of Items on a specified schedule. The Release is contained in the Purchase Order sent to Supplier. 

Definitions E through S are added by Addendum C 

	T.	 “Subsidiary” of a party is an Affiliate Controlled by such party directly, or indirectly through one or more intermediaries.

	U.	 “Control” (including the terms “controlling”, “controlled by”, and “under common control with”) means the
possession, direct or indirect, of the power to direct or cause the direction of the management and policies of an entity, whether through the ownership of voting securities, by contract, or otherwise. 

 

	2.	 TERM OF AGREEMENT 

	A.	 The term of this Agreement shall begin on the Effective Date and continue to the Expiration Date (stated on the signature page). 

	B.	 At Buyer’s option, Items may be scheduled for delivery up to six (6) months following expiration of this Agreement. 

 

	3.	 PRICING 

	A.	 The pricing for Items provided under this Agreement is set forth on Addendum A. At Buyer’s request, such pricing may be modified pursuant to periodic
negotiations between the parties. Notwithstanding such periodic negotiations, under no circumstances shall such negotiated price exceed the price ceiling or price reduction schedule set forth on Addendum A for a period of 18 months from the
effective date of the latest negotiated price. 

	B.	 Paragraph reserved 

	C.	 Paragraph reserved 

	D.	 Paragraph reserved 

	E.	 All applicable taxes, including but not limited to sales/use taxes, transaction privilege taxes, value-added taxes (VAT), general services taxes (GST), gross
receipts taxes, and other charges such as duties, customs, tariffs, imposts, and government imposed surcharges shall be stated separately on Supplier’s invoice and shall be paid by Buyer to Supplier. Supplier shall remit all such charges to the
appropriate tax authority unless Buyer provides sufficient proof of tax exemption acceptable to the taxing authorities in lieu of paying certain taxes. In the event that Buyer is prohibited by law from making payments to Supplier unless Buyer
deducts or withholds taxes and remits such taxes to the local taxing jurisdiction, then Buyer shall duly withhold such taxes and shall pay to Supplier the remaining net amount after the taxes have been withheld. Buyer shall not reimburse Supplier
for the amount of such taxes withheld. When property is delivered and/or services are provided or the benefit of services occurs within jurisdictions in which Supplier collection and remittance of taxes is required by law, Supplier shall have sole
responsibility for payment of said taxes to the appropriate tax authorities. In the event Supplier does not collect tax from Buyer, and is subsequently audited by any tax authority, liability of Buyer will be limited to the tax assessment, with no
reimbursement for penalty or interest charges, unless the penalty or interest charges result from submission of invalid information by Buyer. Each party is responsible for its own

	 	 
respective income taxes or taxes based upon net revenues, including but not limited to business and occupation taxes. 

	F.	 Additional costs, except those described on Addendum A, will not be reimbursed without Buyer’s prior written approval. 

 

	4.	 INVOICING AND PAYMENT 

	A.	 Prompt payment discounts will be computed from the latest of: [*]. Payment is made when Buyer’s check is mailed or EDI funds transfer initiated. Buyer
shall make payment within [*] of Buyer’s receipt of the proper original invoice or Buyer’s receipt of Items, whichever is later. 

	B.	 Original invoices or packing lists shall be submitted and shall include: purchase agreement number from the Purchase Order, Purchase Order number, line Item
number, Release number, part number, complete bill to address, description of items, quantities, unit price, extended totals, and any applicable taxes or other charges. All costs forwarded to Buyer for reimbursement of expenses agreed under the
terms of this Agreement shall be net of any reclaimable Value Added Taxes (“VAT”) incurred on such expenses. Buyer’s payment shall not constitute acceptance of the Items. 

	C.	 Supplier agrees to invoice Buyer no later than [*] after shipment of Items. Buyer will not be obligated to make payment against any invoices submitted after
such period. 

  

	5.	 TERMINATION FOR CONVENIENCE 

	A.	 Buyer may terminate this Agreement or any Purchase Order or Release issued, or any part thereof, at any time for its sole convenience by giving written notice
of termination to Supplier. Upon Supplier’s receipt of such notice, Supplier shall, unless otherwise specified in such notice, immediately stop all work hereunder and give prompt written notice to and cause all of its suppliers or
subcontractors to cease all related work. 

	B.	 Any claim for termination charges for Custom Items, along with a summary of all mitigation efforts, must be submitted to Buyer in writing within [*] after
receipt of Buyer’s termination notice. 

	C.	 Supplier’s claim may include the net cost of custom work in process scheduled to be delivered within fifty-six (56) days and that must be scrapped
due to the termination. Supplier shall, wherever possible, place such custom work in process in its inventory and sell it to other customers. In no event shall such claim exceed the total price for the Items terminated. Upon payment of
Supplier’s claim. Buyer shall be entitled to all work and materials paid for. 

	D.	 Before assuming any payment obligation under this section, Buyer may inspect Supplier’s work in process and audit (in accordance with Section 14
“Retentions and Audit”) all relevant documents. 

	E.	 Notwithstanding anything else in this Agreement, failure to meet the delivery date(s) in the Purchase Order shall allow Buyer to terminate the order for the
Item and/or any subsequent Releases in the Purchase Order without any liability whether the Purchase Order was for standard or custom Items. 

  

	5A.	 TERMINATION FOR BREACH 

	  	 If either party commits a material breach of any obligation hereunder, the other party may, at its option, terminate this Agreement or the affected Purchase
Order or Release by [*] written notice to the breaching party. Such notice shall state the breach upon which termination is based. Notwithstanding such notice, termination shall not occur if such breach is cured within the notice period.

  

	6.	 CONTINGENCIES 

	    	 Neither party shall be responsible for its failure to perform due to causes beyond its reasonable control, such as acts of God, fire, theft, war, riot,
embargoes or acts of civil or military authorities. If delivery is to be delayed by such contingencies, Supplier shall promptly notify Buyer in writing and Buyer may either: (i) extend time of performance; or (ii) terminate all or part of
the uncompleted portion of the Purchase Order at no cost to Buyer if the scheduled shipment date is at least 56 days after the cancellation date.

 

  

	[*] =	CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY
BRACKETS, IS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO
RULE 406 OF THE SECURITIES ACT OF 1933, AS AMENDED. 

 

	7.	 DELIVERY, RELEASES, AND SCHEDULING 

	A.	 Buyer shall provide monthly, no later than the 15th day of each month, a non-binding [*] month rolling order forecast
specifying the anticipated number of Items expected to be ordered. The non-binding [*] month forecast shall be provided to the Aquantia Account Manager or his/her designee. Any forecasts provided by Buyer are for planning purposes only and do not
constitute a Release or other commitment by Buyer. 

	B.	 Supplier shall notify Buyer in writing within [*] of receipt of Buyer’s Purchase Order if Supplier is unable to make
any scheduled delivery and shall state the reasons therefore. The absence of such notice constitutes acceptance of the Purchase Order and commitment to the Release terms. 

	C.	 Supplier shall deliver Items per the Release schedule and Buyer may return non-conforming shipments at Supplier’s
risk and expense. 

	D.	 Buyer may reschedule any Release in whole or in part prior to the Release date at no additional charge. Buyer shall
inform Supplier of the new delivery date so long as the delivery date under the rescheduled Release is within [*] of the original date. 

	E.	 Buyer may place any portion of a Release on hold by notice that shall take effect immediately upon receipt. Releases
placed on hold will be rescheduled or terminated in accordance with Section 5 within a reasonable time 

	F.	 Buyer shall have no obligation with respect to the purchase of Items under this Agreement until such Items are specified
in an issued Purchase Order that contains specific Release dates for specific Items. 

	G.	 If for any reason Supplier discontinues the manufacture of any Custom Item during the term of this Agreement or within
[*] after the final delivery under this Agreement, Supplier shall give Buyer at least [*] prior written notice of such Item discontinuance during which time Buyer shall have the option to place a final Release for such Items for delivery to Buyer
within an agreed upon period. If any warranty return claims are made for such discontinued Items, then such returns will be subject to the warranty provisions in Section 8. 

 

	8.	 ACCEPTANCE AND WARRANTY 

	A.	 Buyer may inspect and test all Items at reasonable times before, during, and after manufacture and upon reasonable notice
during Supplier’s and Supplier’s manufacturing vendor’s’ normal business hours. If any inspection or test is made on Supplier’s premises, Supplier shall provide reasonable facilities and assistance for the safety and
convenience of Buyer’s inspectors in such manner as shall not unreasonably hinder or delay Supplier’s performance. All Items shall be received subject to Buyer’s inspection, testing, approval, and acceptance at Buyer’s premises
notwithstanding any inspection or testing at Supplier’s premises or any prior payment for such Items. Quoted pricing is FCA Aquantia Shipping Dock. Items subject to return may be returned to Supplier at Supplier’s risk and expense and, at
Buyer’s request, shall be promptly replaced, refunded or credited according to the procedures provided herein below. 

	B.	 Supplier makes the following warranties regarding items furnished hereunder, which warranties shall survive any delivery,
inspection, acceptance, payment, or resale of the Items: 

	 	(i)	 Items will not infringe any 3rd party’s intellectual property
rights, and the sole remedy for a breach of this warranty is as stated in Section 13 “Intellectual Property Indemnification”; 

	 	(ii)	 Supplier has the necessary right, title, and interest to provide said Items to Buyer, and the Items will be free of liens
and encumbrances. 

	 	(iii)	 Items are new and of the grade and quality specified; 

	 	(iv)	 Items are free from defects in workmanship and material, substantially conform to all samples, drawings, descriptions,
and specifications furnished or published in non-draft form by Supplier, and to any other agreed-to specifications, and the sole remedy for a breach of this warranty as stated in Paragraph C of this Section; 

	 	(v)	 Items conform to the manufacturing quality provisions set

	 	 
forth in Addendum B and the sole remedy for a breach of this warranty is as stated in Paragraph C of this Section; 

	    	 Buyer makes the following warranties regarding intellectual property and technology furnished to Supplier: The
intellectual property and technology will not infringe any party’s intellectual property rights, and the sole remedy for a breach of this warranty is as stated in Section 13 “Intellectual Property Indemnification”.

	C.	 If Supplier breaches any of the foregoing warranties stated above in (iv) or (v), or Items are otherwise defective
or non-conforming, during a period of three (3) years after Buyer’s acceptance of Items, Supplier shall, at Buyer’s option, promptly rescreen, repair, replace, or refund the amount paid for such Items. Replaced Items are warranted for
ninety (90) days or the balance of the original warranty period, whichever is longer. Supplier shall bear the cost of shipping for the return of defective or non-conforming items to Supplier and shall bear the risk of loss of all defective or
non-conforming Items while in transit. 

	D.	 Warranties Exclusive. 

	    	 (1) Sole Remedy:    Buyer’s sole remedy for breach of the express warranties above shall
be rescreen, replacement, or refund or credit of the purchase price as specified above, at Buyer’s option. To the fullest extent allowed by law, the warranties and remedies set forth in this agreement are exclusive and in lieu of all other
warranties or conditions, express or implied, either in fact or by operation of law statutory or otherwise, including but not limited to warranties, terms or conditions of merchantability, fitness for a particular purpose, satisfactory quality,
particular purpose, satisfactory quality, correspondence with description, non-infringement and accuracy of information generated, all of which are expressly disclaimed. Aquantia’s warranties herein run only to Buyer and are not extended to any
third parties, which for the avoidance of doubt, includes any agents or resellers of Buyer items and end users. Aquantia neither assumes nor authorizes any other person to assume for it. Any other liability in connection with the sale, installation,
maintenance or use of the items. 

	    	 (2) No Aquantia Defect.    Aquantia shall not be liable under the warranties set forth in
Section 8.B.(iv) or (v) if its testing and examination clearly establish that the alleged defect in the item does not exist or was caused by Buyer’s, end users’ or any third person’s misuse, negligence, improper installation
or improper testing, attempts to repair by accident, fire, lightning or other cause beyond Aquantia’s control and such was the cause of the breach of such express warranty. Aquantia shall not be liable under the warranties set forth in
Section 8.B(iv) or (v) if it can clearly establish such any defect or non-conformance is caused by an intellectual property provided by Buyer. 

	    	 (3) Buyer Responsibilities.    Buyer acknowledges and agrees that Buyer is solely responsible
for the selection of the Items, their ability to achieve the results Buyer intends, their use with any hardware, software, peripherals or any system, and the performance that Buyer, Buyer’s customers and end users obtain from using them. Buyer
alone shall assume any and all warranty obligations with customers and end users for each Buyer product that incorporates the Items, and Buyer has no authority to obligate Aquantia in any way under each such warranty. 

	E.	 RMA Policy and Procedures. The parties will agree to mutually acceptable RMA policy and procedures.

 8A. LIMITATION OF LIABILITY 

	A.	 No Non-Direct Damages - Limitation A party’s liability hereunder shall be limited to direct, objectively
measurable damages. In no event shall either part have any liability for any indirect or speculative damages (including, without limiting the foregoing, punitive, consequential, incidental and special damages) including, but not limited to, loss of
profits, irrespective of whether the party has advance notice of the possibility of any such damages. The parties agree that the foregoing limits shall not apply to breaches of the confidential obligations set forth in [*] or claims arising from
death, bodily injury, or property damage. 

  

	9.	 PRODUCT SPECIFICATIONS/ IDENTIFICATION/ERRATA

 

  

	[*] =	CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY
BRACKETS, IS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO
RULE 406 OF THE SECURITIES ACT OF 1933, AS AMENDED. 

 

	A.	 Supplier shall not modify the specifications for items without Buyer’s written consent. Supplier shall notify Buyer at least [*] in advance of any
changes in the manufacturing process. 

	B.	 Supplier shall cooperate with Buyer to provide configuration control and traceability systems for Items supplied hereunder. 

	C.	 Supplier shall provide Buyer with an errata list for each Item and Shall promptly notify Buyer in writing of any new errata with respect to the Items.

  

	10.	 PACKING AND SHIPMENT 

	A.	 All Items shall be prepared for shipment in a manner that, (i) follows good commercial practice; (ii) is acceptable to common carriers for shipment
at the lowest rate; and (iii) is adequate to ensure safe arrival. Supplier shall mark all containers with necessary lifting, handling and shipping information, Purchase Order number, date of shipment, and the names of the Buyer and Supplier.
Buyer shall notify Supplier of the method of shipment and expected delivery date. If no instructions are given, Supplier shall select the most cost effective carrier, given the time constraints known to Supplier. Subject to Paragraph 7(C), Supplier
shall ship only the quantity of Items specified in the Release. Buyer may return at Supplier’s expense any Items in excess of the quantity stated in the Release or retain such Items, as instructed by Buyer. 

	B.	 As directed by Buyer, freight shall be either managed by Supplier or Buyer in accordance with the following terms and conditions: 

	    	 (i) For Supplier Managed Freight: Seller agrees that all Items shall be shipped Free Carrier, Seller’s Dock (FCA: Seller’s Dock, Inco terms 2000).
Buyer shall notify Seller of the method of shipment. If no instructions are given, Seller shall select the most cost effective carrier based upon Buyer’s required delivery date. 

	    	 (ii) For Buyer Managed Freight: All items shall be shipped Free Carrier, Supplier’s designated factory dock or distribution center dock (FCA:
Supplier’s designated factory dock or distribution center dock, Inco terms 2000). Risk of loss shall pass to Buyer upon delivery of items to Buyer’s agent at the shipping point. 

	C.	 Hazardous Materials Freight: Notwithstanding anything contained in Section 10.B. to the contrary, and regardless of the freight terms listed on any
Purchase Order, all Items that are Hazardous Materials/Dangerous Goods and are regulated in transportation by international, federal, state or local law shall be shipped Delivered Duty Paid, Buyer’s Dock (DDP: Buyer’s Point of Use; Inco
terms 2000) for non free trade zone factory sites or Delivered Duty Unpaid, Buyer’s Dock (DDU: Buyer’s point of use, Inco terms 2000) for free trade zone factory sales. Title and risk of loss shall pass to Buyer upon delivery of Items to
Buyer’s point of use at the Buyer factory site designated in the Release. 

  

	11.	 OWNERSHIP AND BAILMENT RESPONSIBILITIES 

	    	 Any specifications, drawings, schematics, technical information, data, tools, dies, patterns, masks, gauges, test equipment, and other materials furnished or
paid for by Buyer shall: (i) be kept confidential; (ii) remain or become Buyer’s property; (iii) be used by Supplier exclusively for Buyer’s orders; (iv) be clearly marked as Buyer’s property and segregated when
not in use; (v) be kept in good working condition at Supplier’s expense; and (vi) be shipped to Buyer promptly on demand. 

  

	12.	 CONFIDENTIALITY AND PUBLICITY 

	A.	 During the course of this Agreement, either party may have or may be provided access to the other’s confidential information and materials. Provided such
information or materials are marked in a manner reasonably intended to make the recipient aware, or the recipient is sent written notice within forty-eight (48) hours of disclosure, that the information or materials are
“Confidential”, each party agrees to maintain such information in accordance with the terms of this Agreement and the CNDA referenced on the signature page of this Agreement or any applicable separate nondisclosure agreement between Buyer
and Supplier. In the absence of a CNDA or other written agreement, at a minimum each party agrees to maintain such information in confidence and

	 	 
limit disclosure on a need to know basis, to take all reasonable precautions to prevent unauthorized disclosure, and to treat such information as it treats its own information of a similar
nature, until the information becomes rightfully available to the public through no fault of the non disclosing party. Supplier’s employees who access Buyer’s facilities may be required to sign a separate non-disclosure agreement prior to
admittance to Buyer’s facilities (referred to in Addendum D as “Unescorted Access Application forms”). Supplier shall not use any of the confidential information created for Buyer other than for Buyer. 

	B.	 The parties agree that neither will disclose the existence of this Agreement or relationship (other than under NDA after delivery of working samples of
Items), nor any of the details of this Agreement at any time, to any third party without the specific, written consent of the other, which may not be unreasonably delayed or withheld. If disclosure of this Agreement or any of the terms hereof is
required by applicable law, rule, or regulation, or is compelled by a court or governmental agency, authority, or body, such as annual reports or S1 Filings: (i) the parties shall use all legitimate and legal means available to minimize the
disclosure to third parties of the content of the Agreement, including without limitation seeking a confidential treatment request or protective order; (ii) the party compelled to make disclosure shall (if reasonably possible) inform the other
party at least ten (10) business days (i.e., not a Saturday, Sunday or a day on that banks are not open for business in the geographic area in that the non-disclosing party’s principal office is located) in advance of the disclosure, and
(iii) the party compelled to make disclosure shall give the other party a reasonable opportunity to review and comment upon the disclosure, and any request for confidential treatment or a protective order pertaining thereto, prior to making
such disclosure. However, the parties may disclose this Agreement in confidence to their respective legal counsel, accountants, bankers and financing sources as necessary in connection with obtaining services from such third parties; and to
investors or potential investors who are under an obligation of confidentiality at least as restrictive as that contained in the CNDA. Neither party may use the other party’s name or trademarks in any type of advertisement materials, web sites,
press releases, interviews, articles, brochures, business cards, project reference or client listings without the other’s written consent, which may not be unreasonably delayed or withheld. For Intel, a request for such consent should be
addressed to the Director of Corporate Purchasing and/or the Vice President of Materials, and for Supplier, a request for such consent should be addressed to the General Counsel, 

	C.	 The obligations stated in this Section 12 shall survive the expiration or termination of this Agreement 

 

	13.	 INTELLECTUAL PROPERTY INDEMNIFICATION 

	(1)	 Defense by Aquantia.    Aquantia shall, at its own expense, defend or settle any suit or proceeding (“Claim”) that
is instituted against Buyer to the extent that such claim alleges that any Item sold by Aquantia hereunder infringes any duly issued patent or copyright or misappropriates any trade secret and shall pay all damages awarded therein against Buyer or
agreed upon in settlement by Aquantia. Buyer shall (a) give Aquantia reasonable notice in writing of any such Claim or threat thereof, (b) permit Aquantia sole control, through counsel of Aquantia’ choice, to defend and/or settle such
Claim. Subject to Supplier’s right to control the defense and any settlement, Buyer may in addition have separate legal counsel participate in the defense on Buyer’s behalf at Buyer’s own expense. Finally, Supplier shall review with
Buyer all proposed settlements and Buyer shall have the right to reject any proposed final settlements, such right of rejection being exercised only where the settlement would require Buyer to grant any rights or licenses under Buyer’s
intellectual property rights or would cause other non-monetary impact to Intel. 

	(2)	 When Not Applicable.    The above provision shall not apply to and Aquantia shall have no liability or obligation for any

 

  

	[*] =	CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY
BRACKETS, IS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO
RULE 406 OF THE SECURITIES ACT OF 1933, AS AMENDED. 

	 	 
infringement to the extent attributed to: (a) any modification, servicing or addition made to the Item by anyone other than Aquantia or by a third party without Aquantia’s permission
but only to the extent such infringement was caused by such modification, servicing or addition, (b) the use of the Item as a part of or in combination with any devices, parts or software not provided by Aquantia but only to the extent such
infringement would not have occurred but for such modification, (c) the use of such Item to practice any method or process which does not occur within the Item, but only to the extent such infringement would not have occurred but for such use
(d) compliance with Buyer’s detailed specifications to the extent that Aquantia does not have any discretion in the implementation of such specifications, but only to the extent such infringement would not have occurred but for such
compliance, (e) incorporation into the Item or use in the manufacturing process of any technology provided by Buyer, to the extent such technology is required by Buyer to be so incorporated or used but only to the extent such infringement would
not have occurred but for such incorporation or use. 

	(3)	 Aquantia Options. If the use or sale of any Item purchased from Aquantia is enjoined, Aquantia shall, at Buyer’s option and at Aquantia’s
expense: (a) procure for Buyer the right to use, sell, offer to sell or import such Item, (b) substitute a functionally equivalent, non-infringing unit of the Item; or (c) modify such Item so that it no longer infringes but is
substantially equivalent in functionality; or refund to Buyer the amount paid for any Items returned to Supplier or destroyed. Aquantia shall in no event be obligated to accept new orders for Items that are or may be subject to a claim of
infringement covered under this Article. 

 (4)     Buyer shall defend, indemnify, and hold Supplier harmless from
any costs or expenses arising from a claim of infringement by a third party, where Buyer furnishes and requires Supplier to use detailed specifications for the process of manufacturing the Item(s), or provides any intellectual property or technology
which Supplier (or any third party acting on behalf of Supplier) incorporates into the Item or uses in the manufacturing process, and such infringement claim would not have occurred but for complying with such detailed specifications or
incorporating or using such Buyer intellectual property or technology. Notwithstanding the foregoing, Buyer shall have no liability to Supplier hereunder, if Supplier knows, or through the exercise of reasonable due diligence should have known, that
the required manufacturing specification(s) infringe or potentially infringe a third party’s intellectual property rights. Buyer shall also defend, indemnify, and hold Supplier harmless from any costs or expenses arising from a claim of
infringement by a third party resulting from (a) any modification, servicing or addition made to the Item by anyone other than Aquantia, (b) the use of the Item as a part of or in combination with any devices, parts or software not
provided by Aquantia, or (c) the use of such Item to practice any method or process which does not occur wholly within the Item. 
 (5)
    The foregoing and the warranties stated in Paragraph 8(B) state the entire set of obligations and remedies flowing between Buyer and Supplier arising from any claim brought by a third party regarding infringement or
misappropriation of intellectual property rights, including but not limited to patent, copyright, trademark and trade secret rights, and is in lieu of and replaces any and all other express implied or statutory warranties, terms, or conditions
regarding infringement and misappropriation 
  

	14.	 RECORDS AND AUDIT 

 Supplier shall
maintain complete and accurate records for the Items provided under this Agreement for a period of three (3) years after delivery of such Items. Buyer reserves the right to have Supplier’s records inspected and audited no more than once
per calendar year to ensure compliance with the financial terms of this Agreement. At Buyer’s option or upon Supplier’s written demand, such audit will be performed by an independent third party at Buyer’s expense. Any third-party
auditor must execute a nondisclosure agreement reasonably acceptable to Supplier with regard to all materials inspected by the auditor. However, if

 
Supplier is found not to be complying with the financial terms of this Agreement in any material way (more than 3% of the audited value during the audited period) Supplier shall reimburse Buyer
for all reasonable costs associated with the audit, along with any discrepancies discovered, within thirty (30) days after completion of the audit. The results of such audit shall be kept confidential by the auditor and, if conducted by a third
party, only Supplier’s failures to abide by the obligations of this Agreement shall be reported to Buyer, and the auditor will report the full details of the audit to Supplier. 

 

	15.	HAZARDOUS MATERIALS 

 A.         If Items or any services
provided hereunder include Hazardous Materials, Supplier represents and warrants that Supplier and its personnel providing services to Buyer understand the nature of and hazards associated with the design and/or service of Items including handling,
transportation, and use of such Hazardous Materials, as applicable to Supplier. Prior to causing Hazardous Materials to be on Buyer’s properly, Supplier shall obtain written approval from Buyer’s Site Environmental/Health/Safety
organization. Supplier will be responsible for and indemnify Buyer from any liability to any third party (including governmental agencies) resulting from the actions of Supplier or its contractors in connection with: (i) providing such
Hazardous Materials to Buyer; and/or (ii) the use of such Hazardous Materials in providing services to Buyer. 
 B.
        Supplier will timely provide Buyer with material safety data sheets and any other documentation reasonably necessary to enable Buyer to comply with applicable laws and regulations regarding Hazardous
Materials. 

	C.	 Supplier hereby certifies that Items supplied to Buyer comply with all applicable requirements of Buyer’s Environmental Product Content Specification for
Suppliers and Outsourced Manufacturers (Spec number BS-MTN-0001, available at http://supplier.intel.com/ehs/environmental.htm). 

  

	16.	 CUSTOMS CLEARANCE 

	    	 Upon Buyer’s request, Supplier will promptly provide Buyer with a statement of origin for all Items and with applicable customs documentation for Items
wholly or partially manufactured outside of the country of import. Buyer shall also be the importer of record and is responsible for fulfilling quota terms, obtaining import licenses, paying import license or permit fees, duties and customs fees,
and any other governmental or import taxes or fees, and preparing and submitting all required documentation in connection with importing the Items. 

  

	17.	 COMPLIANCE WITH LAWS AND INTEL CODES OF CONDUCT 

	    	 A.         Supplier shall comply with all national, state, and local laws and regulations governing the manufacture,
transportation, import, export, and/or sale of Items and/or the performance of services in the course of performing its obligations under this Agreement. In the United States, these may include, but are not limited to, Department of Commerce,
including U.S. Export Administration regulations, Securities Exchange Commission, Environmental Protection Agency, and Department of Transportation regulations applicable to Hazardous Materials. Neither Supplier nor any of its Subsidiaries will
export/re-export any technical data, process, or product, or service provided by Buyer, directly or indirectly (including the release of controlled technology to foreign nationals from controlled countries), to any country for which the United
States government or any agency thereof requires an export license or other government approval without first obtaining such license. Neither party shall export, either directly or indirectly, any Product, service or technical data or system
incorporating such Items without first obtaining any required license or other approval from the U.S. Department of Commerce or any other agency or department of the United States Government. In the event any Product is exported from the United
States or re-exported from a foreign destination by either Party, that Party shall ensure that the distribution and export/re-export or import of the Product is in compliance with all laws, regulations, orders, or other restrictions of the U.S.

 

  

	[*] =	CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY
BRACKETS, IS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO
RULE 406 OF THE SECURITIES ACT OF 1933, AS AMENDED. 

	 	 
Export Administration Regulations and the appropriate foreign government. Both parties agree that neither it nor any of its subsidiaries will export/re-export any technical data, process,
Product, or service directly or indirectly, to any country for which the United States government or any agency thereof or the foreign government from where it is shipping requires an export license, or other governmental approval, without first
obtaining such license or approval. 

	    	 A current list of “Controlled Countries” can be found at http://www.bxa.doc.gov. 

	B.	 Supplier represents and agrees that it is in compliance with Executive Order 11246 and implementing Equal Employment Opportunity regulations, the Vietnam Era
Veterans’ Readjustment Assistance Act as amended by the Veterans Employment Opportunities Act of 1998 (to include: Vietnam-era Veterans and other Veterans who served on active duty during a war or campaign or expedition for which a campaign
badge has been authorized), and the Immigration Act of 1987, unless exempted or inapplicable. 

	C.	 Supplier shall comply with all applicable laws regarding non-discrimination in terms and conditions of employment, payment of minimum wage and legally
mandated employee benefits and compliance with mandated work hours. Supplier shall comply with all applicable laws regarding employment of underage or child labor and shall not employ children under the age of 16. Buyer agrees not to include any
discriminatory statements or requirements in contracts or other documents related to the sale or use of the Items or products that include the Items. 

	D.	 Supplier agrees to fully comply with Buyer’s Code of Conduct and Electronic Industries Supply Chain Code of Conduct (EICC) as set forth at
supplier.intel.com. 

  

	18.	 MERGER, MODIFICATION, WAIVER, REMEDIES, AND SEVERABILITY 

	A.	 This Agreement contains the entire understanding between Buyer and Supplier with respect to the subject matter hereof and merges and supersedes all prior and
contemporaneous agreements, dealings and negotiations, oral or written. No modification, alteration, or amendment shall be effective unless made in writing, dated and signed by duly authorized representatives of both parties. 

	B.	 Failure of either party to enforce compliance with any provision of this Agreement shall not constitute a waiver of such provision unless accompanied by a
clear written statement that such provision is waived. No waiver of any breach hereof shall be held to be a waiver of any other or subsequent breach. 

	C.	 Each party’s rights and remedies herein are in addition to any other rights and remedies provided by law or in equity. 

	D.	 If any provision of this Agreement is determined by a court of competent jurisdiction to be invalid, illegal, or unenforceable, a modeled provision shall be
substituted which carries out as nearly as possible the original intent of the parties, and such determination shall not affect the validity of the remaining provisions unless either party determines in its reasonable discretion that the
court’s determination causes this Agreement to fail in any of its essential purposes. 

  

	19.	 ASSIGNMENT 

	    	 Buyer may assign or delegate its rights and/or obligations or any part thereof under this Agreement to any or all of its wholly-owned subsidiaries. Otherwise,
neither party may assign or delegate its rights and obligations under this Agreement without the prior written consent of the other. Buyer may cancel this Agreement for cause should Supplier attempt to make an unauthorized assignment of any right or
obligation arising hereunder. For purposes of this Section 19, the acquisition, merger, consolidation, or change in control of Supplier or any assignment by operation of law shall be deemed an assignment that requires Buyer’s written
consent. 

	20.	 APPLICABLE LAW 

	    	 This Agreement is to be construed and interpreted according to the laws of the State of Delaware, excluding its conflict of laws provisions. The provisions of
the United Nations Convention on Contracts for the International Sale of Goods shall not apply to this Agreement. 

  

	21.	 HEADINGS 

	    	 The headings provided in this Agreement are for convenience only and shall not be used in interpreting or construing this Agreement. 

 

	22.	 SPECIFIC PERFORMANCE 

	    	 Notwithstanding anything else contained in this Agreement, the parties hereto agree that failure to perform certain obligations undertaken in connection with
this Agreement would cause irreparable damage, and that monetary damages would not provide an adequate remedy in such event. The parties further agree that failure to comply with obligations regarding confidential information are such obligations.
Accordingly, it is agreed that, in addition to any other remedy to which the non breaching party may be entitled, at law or in equity, the non breaching party shall be entitled to seek injunctive relief to prevent breaches of the provisions of this
Agreement, and to seek an order of specific performance to compel performance of such obligations in any action instituted in any court of the United States or any state thereof having subject matter jurisdiction. 

 

	23.	 NOTICES 

	    	 Notices shall be given in writing by personal delivery, recognized overnight courier, or facsimile provided that a confirmation of receipt is obtained. All
notices shall be deemed to have been given and received on the earlier of actual delivery (except that faxes sent on a non-business day will be deemed received on the next business day) or three (3) days from the date of deposit with overnight
courier, to the address set forth below or to such other address as a Party has notified the other Party in writing. Unless Buyer notifies Supplier of a change, all notices to Buyer regarding this Agreement shall be sent to Buyer’s Materials
General Counsel and to the Buyer’s Materials Representative, all at the address on the signature page of this Agreement. If to Aquantia: 

  

	    	 Aquantia Corporation 

	    	 Attention. Legal Department 

	    	 700 Tasman Drive 

	    	 Milpitas, CA 95035 

	    	 USA 

	    	 Telephone 408.228.8300 

  

	24.	 PRIVACY 

	A.	 This provision applies to both online and offline Personal Information. However, the exchange of employee information in the normal course of business shall
not be considered Personal Information, and the parties do not anticipate the sharing of personal information under this Agreement. 

	B.	 ‘‘Personal Information” is defined as any information that can be used to identify, contact or locate a person outside of that person’s
business affiliation as it pertains to this Agreement. This includes any information which is linked to Personal Information, or from which other Personal Information can easily be derived. 

	C.	 If Buyer transmits any Personal information to Supplier, Supplier warrants that Supplier shall not transfer such Personal Information to any third party or
use it for any purpose other than as described in this Agreement. 

	D.	 If Supplier obtains Personal Information in the course of performance of services for Buyer, Supplier warrants that Supplier shall not transfer such Personal
Information to any third party or use it for any purpose other than as described in this Agreement. 

	E.	 Supplier shall permanently delete all Personal Information within thirty (30) days after the Personal Information is no longer being actively used in
fulfilling Supplier’s obligations to Buyer under this Agreement, unless otherwise required by local law or regulation.

 

  

	[*] =	CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY
BRACKETS, IS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO
RULE 406 OF THE SECURITIES ACT OF 1933, AS AMENDED. 

 

	F.	 If Supplier contracts with its Affiliates, subcontractors or other third parties for performance of all or part of this Agreement, Supplier must require such
third parties to agree in writing with the same, or substantially similar, Privacy and Data Security provisions as those contained in this Agreement. 

	G.	 Supplier shall take all measures necessary to ensure the security of Supplier’s data, as described in the Data Security provision (Section 25) of this
Agreement. Further, Supplier shall comply with the current online Privacy Alliance’s privacy guidelines (available at http://www.privacyalliance.org/ ). 

  

	25.	 DATA SECURITY REQUIREMENTS 

	A.	 Logical Controls: All systems containing Intel Confidential information will have strong access control mechanisms in place. Each system user must have a
unique identifier and password combination. There must be control methods for securely granting and revoking access to these systems. 

	B.	 Physical Controls: Server and mass storage systems storing Intel Classified information must be housed in a physically secure location with access controls to
the granularity of the user (e.g. card access controlled room) and with 24x7 intrusion detection systems in place (e.g. a monitored perimeter alarm system). Access control audit trails must be maintained sufficient to support an investigation.

	C.	 Intrusion Detection/Response: For systems and networks containing Intel Classified material, mechanisms and controls must be in place to detect security
breaches and to properly respond to a breach. 

	D.	 Data Destruction: Electronic portable media (e.g. CD’s, hard drives, floppy disks, ZIP drives) which contained Intel Classified information must be
disposed of in a secure manner (e.g. disk wipe to DOD 5220.22M standard, degauss or physical destruction). Hard copies of Intel Classified information must be disposed of by cross cut shredding or other secure destruction methods

  

	26.	 ELECTRONIC TRANSACTIONS 

	A.	 Subject to the terms and conditions of this section, by on or about June 30, 2009 the parties expect to accept electronic records and electronic
signatures as such terms are defined in the U.S. Electronic Signatures in Global and National Commerce Act) relating to transactions contemplated by this Agreement. 

	B.	 In connection with system-to-system implementations if electronic transactions are enabled: 

	 	(i)	 The parties will implement the particular transaction sets and/or message specifications mutually agreed upon by the parties. Each party’s implementation
will comply with applicable standards (e.g., applicable ANSI standards or Rosetta Net Pips), except as otherwise mutually agreed. 

	 	(ii)	 Where applicable standards require that the receiving party issue a notice to the other confirming message receipt, such notice will not constitute a binding
acceptance or acknowledgement of anything more than mere receipt. In the event that any element of an applicable standard conflicts with a provision of this Agreement, the provision of this Agreement will control. 

	 	(iii)	 If a party has adopted an electronic identifier (e.g. a digital signature), the other party is entitled to rely on the authenticity of messages signed by or
otherwise associated with such electronic identifier unless and until notified otherwise by the adopter. 

	C.	 Either party may use a third party service provider in connection with e-business activities (e.g., to route or translate EDI or XML messages, or to host web
based services). The party contracting with a service provider must require that such service provider (a) use information disclosed to or learned by such service provider in connection with providing services solely for the purpose of
providing the applicable services, and (b) not disclose such information to any third party. Either party may begin to use or may change a service provider upon reasonable prior written notice to the other party. Each party will be liable for
the acts or omissions of its service provider in connection with activities contemplated by this Agreement.

	27.	 DISPUTE RESOLUTION 

	    	 All disputes arising directly under the express terms of this Agreement or the grounds for termination thereof shall be resolved as follows: The senior
management of both parties shall meet to attempt to resolve such disputes. If the disputes cannot be resolved by the senior management, either party may make a written demand for formal dispute resolution and specify therein the scope of the
dispute. Within thirty (30) days after such written notification, the parties agree to meet for one (1) day with an impartial mediator and consider dispute resolution alternatives other than litigation, including referral to the National
Patent Board or JAMS for arbitration. If an alternative method of dispute resolution is not agreed upon within thirty (30) days after the one day mediation, either party may begin litigation proceedings. 

 

	28.	 SURVIVAL 

	    	 The provisions of Sections 1, 3, 5, 6, 8, 11, 12, 13, 14, 15, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, and paragraph 4C shall survive the termination or
expiration of this Agreement. In addition, any right or legal obligation of a party contained in any Addendum or Amendment, that by its express term or nature would reasonably extend for a period beyond the term of the Agreement, shall also survive
the termination of the Agreement for such extended period. 

  

	29.	 NEW DEVELOPMENTS [Added by Addendum C] 

  

	30.	 TRANSFER EVENT [Added by Addendum C] 

  

	31.	 [Intentionally omitted] 

  

	32.	 INTERPRETATION [Added by Addendum C] 

  

	33.	 SUPPLY LINE PROTECTION (SLP) [Added by Addendum C] 

  

	34.	 [Intentionally omitted] 

  

	35.	 CAPACITY UPSIDE [Added by Addendum C]

 

  

	[*] =	CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY
BRACKETS, IS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO
RULE 406 OF THE SECURITIES ACT OF 1933, AS AMENDED. 

 AMENDMENT NO. 1 TO 

MASTER PURCHASE AGREEMENT FOR 10 GIGABIT ETHERNET
PHYSICAL LAYER DEVICES 
 AND 

PROJECT STATEMENT #1 – [*] PRODUCT 

This Amendment No. 1 (the “Amendment”) is entered into as of September 22, 2009 (“Effective Date”), by
and between Intel Corporation (“Intel”) and Aquantia Corporation (“Aquantia”) for the purpose of amending the Master Purchase Agreement for 10 Gigabit Ethernet Physical Layer Devices between Intel and Aquantia effective
January 15, 2009 (“Master Agreement”) and its Project Statement #1 – [*] Product dated as of January 15, 2009 (the “Project Statement”) (the Master Agreement and the Project Statement are referred to collectively
as the “Agreement”). 
 Whereas, the Project Statement provides for the development of the [*] Product which incorporates
Intel’s 10GbE duel MAC with Aquantia’s 10GbE dual PHY, and also provides for a limited license to Aquantia to make, use and sell such product (referred to as the “Aquantia Product”) [*] as provided in the Project Statement and in
the Master Agreement; 
 Whereas, Aquantia wishes to appoint another entity as a second source for Aquantia products, and
accordingly, Aquantia wishes to have certain rights under the Agreement extended to such entity acting as Aquantia’s second source and/or clarified, and Intel agrees to such extensions and clarifications pursuant to the terms of this Amendment:

 Now, therefore, in consideration of the mutual covenants and premises contained herein, the receipt and sufficiency of which are
hereby acknowledged, the parties agree as follows: 
 1.            Effect of Amendment.
Except as amended by this Amendment, all terms and conditions of the Agreement shall remain in full force and effect. In the event of a conflict between this Amendment and the Agreement, this Amendment shall control. Capitalized terms not defined
herein have the meanings specified in the Agreement. 
 2.            Amendments.

 (a)           In the Project Statement, the definition of “Aquantia Product”
is hereby amended to read as follows: 
 8.1.2 “Aquantia Product” means [*]. Unless otherwise expressly set forth in this
Project Statement, references to “[*] Product” in this Project Statement shall not be construed as including a reference to the Aquantia Product. 

(c)           A new definition is hereby added to Section 8.1 of the Project Statement
as follows: 
 8.1.11 “Second Source” means a third party, approved by Intel, with whom Aquantia enters into an agreement
under which such third party will act as a second source for Aquantia’s customers with respect to the Aquantia Products, which products may be marketed and sold under the branding and marks of such third party. 

(d)           Section 8.3.3 of the Project Statement is revised to add “(except as
provided below)” after “non-sublicensable”. 
 (e)          
Section 8.3.3.4 is revised to read as follows: 
 8.3.3.4 to make and have made, use, import, offer for sale and sell the Aquantia
Products, and, upon consent of Intel to sublicense the foregoing rights to the Second Source. 

(f)           Section 8.4 of the Project Statement is amended to read as follows: 

8.4 Have Made Rights. For purposes of exercising its have made rights granted under Section 8.3.3.2 and 8.3.3.4 of this Project Statement
(Licensing), Aquantia (and, for the purpose of exercising its sublicense rights under Section 8.3.3.4, its Second Source) may deliver Intel Technology delivered to Aquantia by Intel only to those subcontractors approved in advance in

  

	[*] =	CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY
BRACKETS, IS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO
RULE 406 OF THE SECURITIES ACT OF 1933, AS AMENDED. 

 
writing by Intel subject to the confidentiality obligations set forth in Section 3.(a) of this Amendment. 

3.            Consent for Second Source. Intel hereby approves [*] as a Second Source under
the following terms and conditions: 
 (a)           Disclosure of Intel Confidential
Information. Intel hereby consents to the disclosure of the Intel Confidential Information set forth in Addendum A attached hereto and by this reference made a part hereof. Such disclosure shall be made under an agreement of confidentiality at least
as comprehensive as the agreement applicable to each such item of Intel Confidential Information (e.g., the CNDA or any other applicable confidentiality agreement). Aquantia shall be liable to Intel for any breach of such agreement of
confidentiality by the Second Source and any such agreement shall name Intel as a third party beneficiary. 

(b)           Consent to Sublicense: Intel hereby consents to the sublicense under
Section 8.3.3.4 to [*] under the following terms and conditions: 

(i)            Aquantia to disable [*] for the Aquantia Product [*]. 

(ii)            Mask Works made from [*] are defined as [*] will be identified by
a [*]. 
 (iii)            Except as described in section 3 (d) below, [*] will
not order, nor have access to, [*] for the Aquantia Product and [*] will purchase wafers from [*] based on [*]. 

(iv)          For Second Source Aquantia Product, [*] to manage subcon Assembly/Test
suppliers. 
 (v)          The sublicense is limited solely to [*] providing second
source services to Aquantia customers and markets as defined in and under the terms and conditions of the second source agreement between Aquantia and [*] (“Second Source Agreement”). 

(vi)            The sublicense shall terminate immediately upon termination of
the Second Source Agreement for any reason, provided that, after termination of the Second Source Agreement, the sublicense to [*] shall continue solely to the extent necessary to allow [*] to provide a last time buy if required under the Second
Source Agreement (“Continuing Rights”). 
 (c)           Delivery of Intel
Technology. Subject to Section 3(a) above, Aquantia may deliver the Intel Technology set forth in Exhibit A to [*] solely for the use by [*] in the performance of the Second Source Agreement. [*] shall return all Intel Technology to Aquantia
upon the termination of the Second Source Agreement and expiration of Continuing Rights. 

(d)           Use of [*]. In the event 1) [*] is unable to fulfill its obligations to supply
Aquantia Product under the Second Source Agreement due to [*] which is uncured after [*] notice; and 2) Aquantia is unable or unwilling (other than due to breach of agreement by [*] or [*]) to make the [*] or a suitable replacement available to [*]
for the purpose of enabling [*] to supply [*] under the Second Source Agreement, [*] may, at its sole expense procure a replacement set of [*]. [*] shall transfer ownership of the [*] to Intel [*]. Upon ownership transference of the replacement [*]
to Intel, Intel shall license [*] to use the [*] to build wafers and sell Aquantia Product to [*] solely to the extent necessary for [*] go fulfill its obligations to [*] under the Second Source Agreement [*]. Intel will not [*]. Intel shall
maintain the [*] as Aquantia Confidential Information under the CNDA between the parties. 

4.            Miscellaneous. The parties mutually acknowledge and agree that this Amendment
shall he governed by and construed in accordance with the internal laws of the State of Delaware without regard to conflicts of law provisions thereof. This Amendment represents the entire agreement of the parties with respect to the subject matter
hereof and supersedes all prior or contemporaneous agreements, understandings, proposals and representations by the parties and no waiver, modification or amendment shall be valid unless it is set forth in writing and signed by both parties. This
Amendment may be executed in any number of counterparts and when so executed and delivered shall have the same force and effect as though all signatures appeared on one document. 

IN WITNESS WHEREOF, each party has caused this Amendment to be duly executed as of the Effective Date. 

 

									
	INTEL CORPORATION	 		 	AQUANTIA CORPORATION
					
	By:	 	/s/Tom Swinford	 		 	By:	 	/s/ Faraj Aalaei

									
					
	Name:	 	Tom Swinford	 		 	Name:	 	Faraj Aalaei

									
					
	Title:	 	VP and GM, LAN Access Division	 		 	Title:	 	CEO

  

	[*] =	CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY
BRACKETS, IS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO
RULE 406 OF THE SECURITIES ACT OF 1933, AS AMENDED. 

 Addendum A 

Intel Confidential Information and Intel Technology to be Disclosed to [*]. 

1 - Existence of a business relationship between Aquantia and Intel as it relates to [*]. 

  

	[*] =	CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY
BRACKETS, IS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO
RULE 406 OF THE SECURITIES ACT OF 1933, AS AMENDED. 

 AMENDMENT NO. 2 TO 

MASTER PURCHASE AGREEMENT FOR 10 GIGABIT ETHERNET
PHYSICAL LAYER DEVICES 
 AND 

PROJECT STATEMENT #1 – [*] PRODUCT 

This Amendment No. 2 (the “Amendment”) is entered into as of Dec 15, 2011 (“Effective Date”), by and
between Intel Corporation (“Intel” ) and Aquantia Corporation (“Aquantia”) for the purpose of amending the Master Purchase Agreement for 10 Gigabit Ethernet Physical Layer Devices between Intel and Aquantia effective
January 15, 2009 (“Master Agreement”) and its Project Statement #1 – [*] Product dated as of January 15, 2009 (the “Project Statement”) (the Master Agreement and the Project Statement are referred to collectively
as the “Agreement”). 
 Whereas, the Project Statement provides for the development of the [*] Product which incorporates
Intel’s 10GbE duel MAC with Aquantia’s 10GbE dual PHY, and also provides for a limited license to Aquantia to make, use and sell such product (referred to as the “Aquantia Product”) [*] as provided in the Project Statement and in
the Master Agreement; 
 Whereas, Aquantia wishes to appoint another entity as a second source for Aquantia products, and
accordingly, Aquantia wishes to have certain rights under the Agreement extended to such entity acting as Aquantia’s second source and/or clarified, and Intel agrees to such extensions and clarifications pursuant to the terms of this Amendment;

 Now, therefore, in consideration of the mutual covenants and premises contained herein, the receipt and sufficiency of
which are hereby acknowledged, the parties agree as follows: 
 1. Effect of Amendment. Except as amended by this Amendment, all
terms and conditions of the Agreement shall remain in full force and effect. In the event of a conflict between this Amendment and the Agreement, this Amendment shall control. Capitalized terms not defined herein have the meanings specified in the
Agreement. 
 2. Consent for Second Source. Intel hereby approves [*] as a Second Source under the following terms and conditions:

 (a)        Disclosure of Intel Confidential Information. Intel hereby consents to the disclosure
of the Intel Confidential Information set forth in Addendum A attached hereto and by this reference made a part hereof. Such disclosure shall be made under an agreement of confidentiality at least as comprehensive as the agreement applicable to each
such item of Intel Confidential Information (e.g., the CNDA or any other applicable confidentiality agreement). Aquantia shall be liable to Intel for any breach of such agreement of confidentiality by the Second Source and any such agreement shall
name Intel as a third party beneficiary. 
 (b)        Consent to Sublicense: Intel hereby consents
to the sublicense under Section 8.3.3.4 to [*] – under the following terms and conditions: 

(i)         Aquantia to disable [*] for the Aquantia Product [*]. 

(ii)        Mask Works made from [*] are defined as [*] will be identified by a [*]. 

(iii)        Except as described in section 3 (d) below, [*] will not order, nor have access to, [*]
for the Aquantia Product, and [*] will purchase wafers from [*] based on [*]. 
 (iv)         For
Second Source Aquantia Product, [*] to manage subcon Assembly/Test suppliers. 
 (v)         The
sublicense is limited solely to [*] providing second source services to Aquantia customers and markets as defined in and under the terms and conditions of the second source agreement between Aquantia and [*] (“Second Source Agreement”)

 (vi)         The sublicense shall terminate immediately upon termination of the Second Source
Agreement for any reason, provided that, after termination of the Second Source Agreement, the sublicense to [*] shall continue solely to the extent necessary to allow [*] to provide a last time buy if required under the Second Source Agreement
(“Continuing Rights”). 
 (c)        Delivery of Intel Technology. Subject to
Section 3(a) above, Aquantia may deliver the Intel Technology set forth in Exhibit A to [*] solely for the use by [*] in the performance of the Second Source Agreement. 

  

	[*] =	CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY
BRACKETS, IS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO
RULE 406 OF THE SECURITIES ACT OF 1933, AS AMENDED. 

 
[*] shall return all Intel Technology to Aquantia upon the termination of the Second Source Agreement and expiration of Continuing Rights. 

(d)        Use of [*]. In the event 1) [*] is unable to fulfill its obligations to supply Aquantia
Product under the Second Source Agreement due to the [*] which is uncured after [*] notice; and 2) Aquantia is unable or unwilling (other than due to breach of agreement by [*] or [*]) to make the [*] or a suitable replacement available to [*] for
the purpose of enabling [*] to enable [*] to supply [*] under the Second Source Agreement, [*] may, at its sole expense procure a replacement set of [*]. [*] shall transfer ownership of the [*] to Intel [*]. Upon ownership transference of the
replacement [*] to Intel, Intel shall license [*] to use the [*] to build wafers and sell Aquantia Product to [*] solely to the extent necessary for [*] go fulfill its obligations to [*] under the Second Source Agreement [*]. Intel will not [*].
Intel shall maintain the [*] as Aquantia Confidential Information under the CNDA between the parties. 
 3.
          Miscellaneous. The parties mutually acknowledge and agree that this Amendment shall be governed by and construed in accordance with the internal laws of the State of Delaware without
regard to conflicts of law provisions thereof. This Amendment represents the entire agreement of the parties with respect to the subject matter hereof and supersedes all prior or contemporaneous agreements, understandings, proposals and
representations by the parties and no waiver, modification or amendment shall be valid unless it is set forth in writing and signed by both parties. This Amendment may be executed in any number of counterparts and when so executed and delivered
shall have the same force and effect as though all signatures appeared on one document. 
 IN WITNESS WHEREOF, each party has caused
this Amendment to be duly executed as of the Effective Date. 

  

	[*] =	CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY
BRACKETS, IS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO
RULE 406 OF THE SECURITIES ACT OF 1933, AS AMENDED. 

									
	INTEL CORPORATION	 		 	AQUANTIA CORPORATION
					
	By:	 	/s/ Tom Swinford	 		 	By:	 	/s/ Faraj Aalaei

									
					
	Name:	 	Tom Swinford	 		 	Name:	 	Faraj Aalaei

									
					
	Title:	 	VP, IAG & GM, CNG	 		 	Title:	 	CEO

  

	[*] =	CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY
BRACKETS, IS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO
RULE 406 OF THE SECURITIES ACT OF 1933, AS AMENDED. 

 ADDENDUM A 

PROJECT STATEMENT #1 — [*] PRODUCT 
  

 
  

	1.	INCORPORATION INTO AGREEMENT 

 Intel and Aquantia (the “Parties”) agree that this
Project Statement #1 (“Project Statement”) shall be attached to and incorporated in the “Agreement” as Attachment Number #1. For purposes of this Project Statement #1, the “Agreement” means the Master Purchase Agreement
between Intel Corporation and Aquantia Corporation dated December 15, as amended to-date. The purpose of this Project Statement #1 is to set forth the terms and conditions under which Aquantia will develop and deliver a 10GbE dual MAC/PHY
device (“[*] Product”). The Parties agree that the date of this Project Statement #1 shall be January 15, 2009. 
 Any changes to the
specifications of [*] Product that are set forth in this Project Statement #1 must be agreed to by the Parties in writing. 
  

	2.	DEFINITIONS AND PRODUCT DESCRIPTION 

 Aquantia will combine Intel’s 10GbE dual MAC with
Aquantia’s 10GbE dual PHY to create the [*] Product on [*] 40nm process. Intel’s dual MAC will be delivered as [*] with Aquantia performing [*] in order to deliver [*] devices to Intel. [*] Product is a custom item. 

 

	3.	PRICING 

 3.1.          In Sample
and/or Prototype Units. Upon availability and prior to [*] (or other dates subsequently agreed to by the Parties) Intel may purchase sample or prototype units of [*] Product from Aquantia as follows: 

All sample and/or prototype units, regardless of spin (e.g., A0, A1, A2): Aquantia will provide the first 200 samples to Intel at no cost. Intel may
purchase additional samples at Aquantia’s “Standard Cost”. “Standard Cost” is defined as [*]. 

3.2.          [*] Units 

3.2.1.    Purchase Price 

 

	 	    	 3.2.1.1. Intel may purchase [*] at the pricing specified below following its delivery to Aquantia of Intel’s
written confirmation that [*] Product has received [*]. Following such notice Intel shall pay Aquantia [*] units delivered to it in keeping with the purchase order terms specified in Sections 3 and 4 of the Master Purchase Agreement. The [*]
relevant to any given purchase order shall be the applicable [*] stated in the table below [*] plus [*], calculated as follows: 

  

	 	    	 [*]. 

  

	 	    	 3.2.1.2. For the purpose of this Section 3.2, the [*] is defined as [*]. The [*] will be [*] by Intel [*].

 3.2.2.    [*] 

 

	 	    	 3.2.2.1. Given that the [*] used in the formula stated in 3.2.1.1 has [*] for [*]: 

 

	 	    	 a)          For each [*]. 

 

	 	    	 b)          [*] determined in Section 3.2.2.1a) above [*].

  

	 	    	 c)          [*] under Section 3.2.1. The difference shall be [*].

 
  

	 	    	 d)          In conjunction with the [*], Intel shall provide Aquantia
with [*]. For clarification, this does not require the [*]. This report shall be treated as Intel Confidential Information under Section 12 of the Agreement. 

 

	    	 3.2.3.    For the purpose of this Section 3.2 units sold to Intel customers shall include
units sold directly by Intel or its distributors to its customers as well as units incorporated by or on behalf of Intel into one or more Intel product(s), such as [*] and sold to an Intel customer. In the latter case, the [*] shall be deemed to be
the [*]. For example [*]. 

  

	    	The [*] is listed in the [*] below 

 [*] Schedule 

 

											
	Date	  	1H 2011	  	2H 2011	  	1H 2012	  	2H 2012	  	2013+
	 [*]

 
	  	 [*]

 
	  	 [*]

 
	  	 [*]

 
	  	 [*]

 
	  	 [*]

 

	 [*]

 
	  	 [*]

 
	  	 [*]

 
	  	 [*]

 
	  	 [*]

 
	  	 [*]

 

	 [*]

 
	  	 [*]

 
	  	 [*]

 
	  	 [*]

 
	  	 [*]

 
	  	 [*]

 

	 [*]

 
	  	 [*]

 
	  	 [*]

 
	  	 [*]

 
	  	 [*]

 
	  	 [*]

 

 Any changes in the UPC shall be as mutually agreed by the Parties. 

[*]. 
  

	4.	 PREPAYMENT, NRE AND EXCHANGE OPTION 

4.1.          Prepayment: Intel shall prepay $4,000,000 to Aquantia which will be applied
towards [*]. This prepayment shall be fully refundable at Intel’s discretion after January 1, 2010. 
  

	    	Prepaid Payment Schedule: 

  

			
	 Due on:

 
	  	
[*]
  

	 Payment

 
	  	 $4,000,000

 

 Aquantia shall invoice Intel for the foregoing prepayment [*] prior to the payment due date set forth in the table
above. Intel shall remit payment on or before the payment due date set forth above, which shall be within [*] of Intel’s receipt of Aquantia’s invoice. 

4.2.          NRE: Intel shall pay Aquantia for non-recurring engineering expenses
(“NRE”) associated with the development of [*]. Intel’s total NRE payment to Aquantia for [*] Product shall be $4,000,000. This includes [*]. 
  

	 	    	 If [*] are necessary then [*]. 

 

	 	    	 [*]. 

  

	    	 NRE Payment Schedule: 

 

			
	 Due on:

 
	  	
[*]
  

	 Payment

 
	  	 $4,000,000

 

 
 

4.3.          Aquantia shall invoice Intel for the foregoing NRE payment at least [*] prior to
the payment due date set forth in the table above. Intel shall remit payment on or before the payment due date set forth above, which shall be within [*] of Intel’s receipt of Aquantia’s invoice. For the avoidance of doubt, the foregoing
NRE payment [*]. 
  

	5.	DEFINITIONS 

  

			
	1000BASE-CX	 	IEEE 802.3z Gigabit Ethernet Standard for short haul copper (up to 25m).
	1000BASE-LX	 	IEEE 802.3z Gigabit Ethernet Standard using long wavelength (1300nm) laser, typically over Single mode Fiber.
	1000BASE-SX	 	IEEE 802.3z Gigabit Ethernet Standard using short wavelength (850nm) laser, typically over Multi-mode Fiber.
	1000BASE-T	 	IEEE 802.3ab Gigabit Ethernet Standard Physical Layer definition for long haul copper (up to 100m) over 4 pair of Category 5 balanced copper
cabling.
	802.3	 	IEEE standard that defines CSMA/CD and 10BASE-T.
	802.3ab	 	IEEE standard that defines 1000BASE-T.
	802.3u	 	IEEE standard that defines 100BASE-TX.
	802.3z	 	IEEE standard that defines 1000BASE-CX, 1000BASE-LX, 1000BASE-SX.
	A0	 	A0 is used to indicate the first revision of the silicon. If the next revision only changes metal layer, the number increments (e.g. A1). If
all (or most) layers change, the letter increments and the number resets to zero (e.g. B0).
	AFE	 	Analog Front End that converts digital signals to analog for input and output on physical interface.
	AoL	 	Alert-on-LAN.
	ASF	 	Alerting Standards Form.
	BRD	 	The library format for Cadence Allegro PCB designs
	CSMA/CD	 	Carrier Sense Multiple Access / Collision Detect. This is the type of bus protocol implemented by 802.3 Ethernet.
	CTE	 	Cold Temperature Elimination — a method to eliminate the need of testing at cold temperature at high volume production, while still
achieving quality / reliability requirements.
	DAC	 	Dual Address Cycle.
	DB	 	The library format of Synopsys synthesis libraries.
	DFT	 	Design For Testability.
	DMA	 	Direct Memory Access.

  

	[*] =	CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY
BRACKETS, IS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO
RULE 406 OF THE SECURITIES ACT OF 1933, AS AMENDED. 

			
	DRC	 	Design Rule Check.
	DSP	 	Digital Signal Processor.
	EEPROM	 	Electrically Erasable Programmable Read Only Memory.
	EEE	 	Energy Efficient Ethernet
	GMAC	 	Gigabit MAC.
	GMII	 	Gigabit Media Independent Interface.
	GPIO	 	General Purpose Input/Output. This is a software controllable input/output pin/pad.
	HDL	 	Hardware Description Language.
	HSPICE	 	Industry standard models for package, analog, circuit simulation.
	IAS	 	Integration Architecture Specification – is the overall system specification for Barton Hills-LM/LC and will be the reference point for
all functions and features.
	IBIS	 	An industry standard simulation / signal characterization model of IOs.
	IO	 	Input/Output. Typically refers to a silicon pin/pad.
	LOM	 	LAN-on-Motherboard.
	LVS	 	Layout Versus Schematic.
	MAC	 	Media Access Controller. The name of the logic that implements the 802.3 CSMA/CD standard.
	MAC Controller	 	The logic that provides the MAC function along with DMA and a host interface (e.g. PCI).
	MII	 	Media Independent Interface.
	Modelsim	 	Model Technology’s HDL simulator product.
	PCI-Express	 	Third Generation high performance I/O bus implemented with serial, point-to-point type interconnect for communication between two devices at
current data-rate of 2.5 Gbits/sec. AIso known as “PCIE”.
	PDT	 	Intel and AQUANTIA Joint Program Development Team.
	PHY	 	Physical Layer Device. The device/block that implements the AFE.
	PPS & PRQ	 	There are two qualification levels designed to meet Intel’s and its customers’ product introduction and production ramp needs,
Pre-Production Samples (PPS) and Production Release Qualification (PRQ). PPS supports the unique and varied demands our businesses have in shipping limited quantities of customer qualification samples. At PRQ, Intel’s objective is to ship
unlimited quantity of commercial products that meet the Q&R requirements and are supported by the applicable Intel warranty agreements.
	PXE	 	Pre-boot execution Environment.
	RAM	 	Random Access Memory.
	SDF	 	Standard Delay Format.
	SerDes	 	Serializer-Deserializer connection used in Backplane – connection using high speed serial electrical interface, based on IEEE –
1000BaseT-CX; or Fiber interface, IEEE 1000BaseT LX/SX.
	SKU	 	Stock Keeping Unit.
	SPEF	 	Standard Parasitic Exchange Format
	Synopsys	 	Synthesis tool company. www.synopsys.com
	TBI	 	Ten Bit Interface.
	UTP	 	Unshielded Twisted Pair.
	VCS	 	Synopsys’s HDL simulator product.
	Verilog	 	An industry standard HDL language.
	WfM 2.0	 	Wired for Management 2.0 specification: an Intel initiative to improve manageability of desktop, mobile and server systems, decreasing total
cost of ownership.
	WoL	 	Wake on LAN: An IBM trademarked term, used in place of Remote Wake Up, which describes the capability of remotely bringing a PC from a low to
a high power state.
	ZOBI	 	Zero-Hours-Burn-In a method to eliminate the need of burn-in at high volume production while still achieving quality / reliability
requirements.

  

	6.	PROJECT MANAGEMENT 

 The Parties agree to assign dedicated project managers, engineering managers,
and other personnel to this project as specified below. The project managers will exercise overall project responsibility for their respective Party: 

  

	[*] =	CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY
BRACKETS, IS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO
RULE 406 OF THE SECURITIES ACT OF 1933, AS AMENDED. 

 Program and Engineering Project Managers 

 

									
	Party	  	Name	  	Title	  	Phone #	  	Email
	 Intel

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

 

	 Intel

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

 

	 Intel

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

 

	 Intel

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

 

	 Intel

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

 

	 Intel

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

 

	 Aquantia

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

 

	 Aquantia

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

 

	 Aquantia

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

 

 In addition, when applicable, both Parties agree to assign cross-functional team members to the [*] Product project.
These members will include employees of each Party representing, but not limited to, the following functions or disciplines: 
 Analog Engineering (IO cells, PHY,
and noise analysis) 
 Applications Engineering 
 Board Engineering

 CAD Engineering (Layout, DRC) 
 Customer Support 

Digital Engineering (ASIC and CMOS micro-architecture) 
 Software
Engineering 
 Foundry Support 
 Manufacturing Test Engineering

 Marketing 
 Operations 

Packaging Engineering 
 Product Engineering 

Production Operations and Document Control 
 Quality & Reliability
Engineering 
 Silicon Validation 
  

	7.	TERMINATION 

 7.1.          [*] Product Project cancellation
by Intel for convenience: 
 Any other section of the Agreement notwithstanding, Intel may terminate this Project Statement for convenience at any
time by written notice to Aquantia In lieu of any claim for termination charges provided in Sections 5.B and 5.C of the Agreement, Intel shall pay to Aquantia the remaining unpaid NRE payments under the NRE payment table in Section 4. 

7.2.          [*] Product project cancellation by Aquantia for convenience: 

Aquantia may not terminate this Project Statement for convenience. 
  

	8.	INTELLECTUAL PROPERTY AND MARKING 

 8.1.          Definitions

 8.1.1. “Aquantia Field of Use” means (a) physical layer (“PHY”) technology for Ethernet
networking technologies, circuit design, modeling and process design methodologies, programs and flows that do not fall within the Intel Field of Use and are not otherwise based in any way on Intel Confidential Information; (b) dynamic back
biasing technology that does not fall within the Intel Field of Use and is not otherwise based in any way on Intel Confidential Information, and (c) additional technology, if any, expressly identified in the Project Statement. 

8.1.2. “Aquantia Product” means [*]. 

  

	[*] =	CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY
BRACKETS, IS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO
RULE 406 OF THE SECURITIES ACT OF 1933, AS AMENDED. 

	    	 8.1.3.       “Background IP” means all Intellectual Property and
Patents belonging to or controlled by either Party, (i) developed, conceived, obtained or acquired prior to the Effective Date of the Agreement or (ii) developed, conceived, obtained or acquired independently of the Agreement or not as
part of the approved Project Statement. 

  

	    	 8.1.4.       “Intel Field of Use” means (a) media access
controller (“MAC”) technology for Ethernet networking technologies; (b) technology related to manufacturing, metrology, testing, inspection, architecture, functionality and/or power management of (i) Processors,
(ii) Chipsets and (iv) Intel processor based motherboards; and (c) additional technology, if any, expressly identified in an applicable Project Statement. 

 

	    	 8.1.5.       “Intellectual Property” means any and all
intellectual property rights including all of the following and all rights in, arising out of, or associated therewith: (i) procedures, designs, inventions, and discoveries; (ii) works of authorship, copyrights and other rights in works of
authorship; (iii) mask work rights, and (iv) know-how, show-how and trade secrets on a world wide basis, but excluding all Patents issued or issuable thereon, and all trademarks, trade names, or other forms of corporate or product
identification. 

  

	    	 8.1.6.       “Patents” means all classes or types of patents
(including, without limitation, originals, divisions, continuations, continuations-in-part, extensions, renewals, reexaminations, or reissues), and applications for these classes or types of patent rights in all countries of the world (collectively,
“Patent Rights”) that are owned or controlled by the applicable Party during the term of the Agreement. 

  

	    	 8.1.7.       “Patent Prosecution” means (i) preparing, filing
and prosecuting patent applications (of all types), (ii) maintaining any Patents, and (iii) managing interference, reexamination or opposition proceedings relating to the foregoing. 

 

	    	 8.1.8.       “Project” means the development of [*] Product during
the term of this Project Statement as part of an approved Project Statement. 

  

	    	 8.1.9.       “Project IP” means all Intellectual Property and
Patents developed or conceived under this Project Statement by one Party or both Parties as part of an approved Project Statement to develop [*] Products. Project IP does not include the Background IP of either Party. 

 

	    	 8.1.10.       “[*] Product” means a product consisting of a single
integrated circuit of the integration of Intel’s 10GbE dual MAC with Aquantia’s 10GbE dual PHY described in the approved Project Statement to create [*] Product on [*] 40nm process. 

 

	8.2.	 Intellectual Property and Patent Ownership 

 

	    	 8.2.1.       Background IP. As between the Parties, Intel shall have
exclusive ownership of Intel’s Background IP, and Aquantia shall have exclusive ownership of Aquantia’s Background IP. 

  

	    	 8.2.2.       Project IP 

 

	 	    	 8.2.2.1.     Any and all Project IP, other than mask work rights, that falls within the Intel
Field of Use, whether solely or jointly developed, shall be owned solely by Intel (“Intel Owned IP”). Aquantia hereby assigns to Intel all of the Project IP developed or co-developed by Aquantia pursuant to this Project Statement that
falls within the Intel Field of Use. 

  

	 	    	 8.2.2.2.     Any and all Project IP that falls within the Aquantia Field of Use, whether
solely or jointly developed, and all mask work rights that are part of the Project IP, shall be owned solely by Aquantia (“Aquantia Owned IP”). Intel hereby assigns to Aquantia all of the Project IP developed or co-developed by Intel
pursuant to this Project Statement that falls within the Aquantia Field of Use. 

  

	 	    	 8.2.2.3.     Any Project IP that does not fall within either the Intel Field of Use or the
Aquantia Field of Use that is solely conceived by employees of one Party as part of the Project without any contribution, individually or jointly, of employees of the other Party shall be owned solely by the Party whose employees conceived such
Project IP. 

  

	[*] =	CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY
BRACKETS, IS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO
RULE 406 OF THE SECURITIES ACT OF 1933, AS AMENDED. 

	 	    	 8.2.2.4. Any Project IP that does not fall within either the Intel Field of Use or the Aquantia Field of Use that
is jointly conceived by employees of both parties as part of the Project (“Joint Out-of-Field Project IP”) shall be jointly owned. 

  

	 	    	 8.2.2.5. Subject to the licenses granted in this Project Statement and upon the expressed written approval of the
other Party, either Party may at its sole expense file a Patent and carry out Patent Prosecution on any Joint Out-of-Field Project IP and the non-filing Party will assign and hereby does assign to the filing Party all of its ownership interest in
such Joint Out-of-Field Project IP and agrees to execute further instruments necessary for Patent Prosecution as reasonably requested by the filing Party. 

  

	 	    	 8.2.2.6. In the event either Party is unable to obtain the expressed written approval of the other Party pursuant
to Section 8.2.2.5 of this Project Statement, such Joint Out-of-Field Project IP will be kept as a jointly-owned trade secret. 

  

	    	 8.2.3.     Maskworks 

 

	 	    	 8.2.3.1. Sections 8.2.1 and 8.2.2 of this Project Statement notwithstanding, Aquantia shall own the mask works
for the Aquantia Product and [*] Product (each referred to as “Mask Works”) 

  

	 	    	 8.2.3.2. The Mask Works may include trade secrets of Intel. In addition and not in lieu of any obligation of
confidentiality imposed by the Agreement with respect to Intel Confidential Information, Aquantia will not disclose or otherwise make any part of Mask Works available, in any form, to any person other than Aquantia employees whose job performance
requires such access consistent with the exercise of Aquantia’s licenses under Section 8.3.3 of this Project Statement. Aquantia agrees to instruct all such employees on these obligations with respect to use, copying, protection, and
confidentiality of Mask Works. 

  

	 	    	 8.2.3.3. Upon written consent by Intel, Aquantia may deliver the Mask Works to Aquantia subcontractors approved
by Intel in writing for the purpose of exercising Aquantia’s rights under Section 8.3.3 of this Project Statement under an obligation of confidentiality at least as protective as that set forth in Section 12 of the Agreement. In the
event of the termination of the Agreement, except for breach by Aquantia, pursuant to Aquantia exercising its rights under Section 8.3.3.4 Aquantia may deliver the Mask Works to a mask or wafer fabrication subcontractor approved by Intel in
writing, provided Aquantia complies with the conditions in Section 8.5 below. Intel consents to the Mask Works being provided to [*]. 

  

	 	    	 8.2.3.4. Aquantia may not assign, sublicense, lease, or in any other way transfer or disclose Mask Works to any
third party or reproduce or distribute any part of the Mask Works except as expressly provided in this Project Statement. 

  

	    	 8.2.4.     GDSII files 

 

	 	    	 8.2.4.1. Sections 8.2.1 and 8.2.2 of this Project Statement notwithstanding, Aquantia and Intel shall jointly own
the GDSII files for the [*] Product. Section 8.6 defines Intel’s right to use the GDSII files to exercise Intel’s make and have made rights for [*] Product. 

 

	 	    	 8.2.4.2. Each Party shall protect the GDSII files to the same extent as it protects its own similar Intellectual
Property. Because the GSDII files contain confidential information of both parties, each Party shall maintain the GDSII files as confidential information of the other Party subject to Section 12 of the Agreement as well as Section 8.6
below 

  

	8.3.	 Licensing 

  

	    	 8.3.1.     Aquantia grant to Intel. Subject to the terms of the Agreement, Aquantia hereby
grants to Intel a royalty-free, non-exclusive, nontransferable, non-sublicensable (except as expressly provided herein), irrevocable, worldwide license under Project IP and Aquantia Background IP used in the development of the [*] Product to:

  

	[*] =	CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY
BRACKETS, IS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO
RULE 406 OF THE SECURITIES ACT OF 1933, AS AMENDED. 

	 	    	 8.3.1.1. use and import and directly or indirectly sell, offer to sell and otherwise dispose of [*] Product;

  

	 	    	 8.3.1.2. disclose (subject to Section 12 of the Agreement), use, copy, have copied, modify and have modified
Intellectual Property delivered to Intel by Aquantia as part of a Project Statement solely for the purposes of design validation, bug evaluation and repair of designs using [*] Product; 

 

	 	    	 8.3.1.3. use [*] Product, and to use, make, have made, sell, offer to sell and import Intel products that
incorporate or are otherwise adapted to operate with [*] Product. Intel shall further have the right to extend to direct or indirect customers of Intel a license under all of Aquantia’s Patent rights in the [*] Product to use, sell, offer to
sell or import Intel products that incorporate or are otherwise adapted to operate with [*] Product, 

  

	    	 8.3.2.     API License. In addition to the licenses set forth above, Aquantia further
grants to Intel a royalty free, non-exclusive, irrevocable, worldwide license to copy, display, perform, create derivative works and distribute Aquantia’s API software which will be provided in both object and source code form and which is more
fully described in Attachment #2. 

  

	    	 8.3.3.     Intel grant to Aquantia. Subject to the terms of the Agreement and for the
term of the Agreement, Intel hereby grants to Aquantia a royalty-free, non-exclusive, nontransferable, non-sublicensable, irrevocable (except for breach of the Agreement by Aquantia), worldwide license under Project IP and Intel Background IP used
in the development of the [*] Product to: 

  

	 	    	 8.3.3.1. internally use, copy and have copied the technology delivered to Aquantia by Intel as part of a Project
Statement solely for the purposes of developing and supporting the [*] Product as specified in an approved Project Statement solely for the benefit of Intel; 

 

	 	    	 8.3.3.2. make, have made (subject to Section 8.5 (Consent for Aquantia Products) the [*] Products solely for
the benefit of Intel; and 

  

	 	    	 8.3.3.3. sell the [*] Product only to Intel; and 

 

	 	    	 8.3.3.4. to make and have made, use, import, offer for sale and sell the Aquantia Product subject to Intel
approval provided in Section 8.5 (Consent for Aquantia Products) 

  

	    	 8.3.4.     Except as set forth in Section 8.3.3.4 in no event may Aquantia exercise the
foregoing license to develop, make, use, sell or otherwise distribute any Intel Background IP or Intel Project IP other than for Intel’s benefit. Aquantia will have no right to make or use the [*] Product for its own use, or to sell the [*]
Product to anyone other than Intel. 

  

	    	 8.3.5.     The Parties acknowledge that nothing in the foregoing is intended to restrict
Aquantia from testing and validating the [*] Products to the extent necessary for the purpose of fulfilling its obligations under the Agreement. 

8.4.    Have Made Rights. For purposes of exercising its have made rights granted under Sections 8.3.3.2 and 8.3.3.4
of this Project Statement (Licensing), Aquantia may deliver Intel Technology delivered to Aquantia by Intel only to those subcontractors approved in advance in writing by Intel. 

8.5.    Consent for Aquantia Products. 
  

	    	 8.5.1.     Prior to Aquantia’s initial release of the Aquantia Product, Aquantia shall
[*] in order to ensure that adequate security has been incorporated to prevent [*] within the Aquantia Product. Upon Intel’s foregoing written approval for the Aquantia Product, Aquantia may exercise its rights under the license granted in
Section 8.3.3.4, unless and until Aquantia desires to [*] submit such new method [*]. 

  

	    	 8.5.2.     In the event of the termination of the Agreement, Aquantia may exercise its rights
under the license granted in Section 8.3.3.4 but only with respect to Aquantia Products [*]. 

  

	    	 8.5.3.     In the event of the termination of the Agreement, Aquantia represents and warrants
that it will [*], leading to [*]. The [*] will effectively [*]. This [*], allowing [*]. Once the new [*]. 

8.6.    Continuity of Supply 
  

	    	 8.6.1.     Forecast and Manufacturing Cycle Time. 

 

	 	    	 8.6.1.1. Intel will provide Aquantia with a rolling [*] forecast per the Agreement (“Forecast”) and
both Aquantia and Intel will mutually agree to [*] for the Aquantia manufacturing cycle which is to be used to [*]. 

  

	 	    	 8.6.1.2. Aquantia’s manufacturing cycle time (“Manufacturing Cycle Time” or “MCT”) is
[*]. 

  

	    	 8.6.2.     Subject to the terms of the Agreement, Aquantia grants to Intel a worldwide,
nonexclusive, nontransferable, perpetual, irrevocable license to manufacture, or have manufactured, use and import and directly or indirectly sell, offer to sell and otherwise dispose of [*] Product as limited in this Section 8.6. Intel covenants
and agrees that it will have the option to exercise the rights granted pursuant to this Section 8.6.2 upon the occurrence of one or more of the Trigger Events set forth in Section 8.6.2.1 below. 

 

	 	    	 8.6.2.1. A “Trigger Event” is any one of the following events (each, a “Trigger Event”): [*].

  

	 	    	 8.6.2.2. [*]. 

  

	    	 8.6.3.    [*]. 

 

	    	 8.6.4.    [*]. 

8.7.    Product Markings. The [*] Product shall be marked as an Intel-branded device. Aquantia shall meet Intel’s
requirements for Intel branded products as required by Intel. 

  

	[*] =	CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY
BRACKETS, IS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO
RULE 406 OF THE SECURITIES ACT OF 1933, AS AMENDED. 

	9.	DESIGNATED PROJECT MANAGERS AND TECHNICAL POINTS OF CONTACT 

  

									
	For Aquantia: /s/ [*]	 		 	For Intel:
			
		 		 	[*]
			
	AQUANTIA	 		 	INTEL CORPORATION
					
	By:	 	/s/ Phil Delansay	 		 	By	 	/s/ Pat Gelsinger
			
	Printed Name: Phil Delansay	 		 	Printed name: Pat Gelsinger
			
	Title: CEO	 		 	Title: Sr. VP & GM, Digital Enterprise Group
					
	Date:	 	January 15, 2009	 		 	Date:	 	January 15, 2009

  

  

	[*] =	CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY
BRACKETS, IS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO
RULE 406 OF THE SECURITIES ACT OF 1933, AS AMENDED. 

 ATTACHMENT #1 TO PROJECT STATEMENT #1: [*] PRODUCT 

REQUIRED FEATURES OF THE [*] PRODUCT 
 Project Summary: 

[*2 pages*] 
  

									
	AQUANTIA	 		 	INTEL CORPORATION
					
	By:	 	/s/ Phil Delansay	 		 	By	 	/s/ Pat Gelsinger
			
	Printed Name: Phil Delansay	 		 	Printed name: Pat Gelsinger
			
	Title: CEO	 		 	Title: Sr. VP & GM, Digital Enterprise Group
					
	Date:	 	January 15, 2009	 		 	Date:	 	January 15 ,2009

  

	[*] =	CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY
BRACKETS, IS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO
RULE 406 OF THE SECURITIES ACT OF 1933, AS AMENDED. 

 ATTACHMENT #2 TO [*] PRODUCT PROJECT STATEMENT 

STATEMENT OF WORK (“SOW”) 

This Attachment #2 describes Key Milestones, deliverables and required dates throughout the Project. Following the effective date of this Project
Statement #1, the Parties may choose to revise the content of this Attachment #2, including delivery dates, milestones, etc. as mutually agreed. All such subsequent changes or revisions to these milestones, deliverables and dates are subject to
ratification by Intel and Aquantia in meetings held by the Program Managers at Intel and Aquantia, and recorded in the Meeting Minutes and Project Schedule. 

Aquantia Deliverables and Milestones 
 The table below represents a summary
of the Aquantia and Intel deliverables, milestones, and associated delivery dates. [*]. Each milestone is briefly defined in the section below the table. 

[*]. 
  

							
	Section Ref	  	Deliverable/Milestone	  	Owner(s)	  	
Date 

(DATES TBD, WILL CHANGE!)

	
(1)
	  	[*]	  	Intel/Aquantia	  	[*]
	
(2)
	  	[*]	  	Intel	  	[*]
	
(3)
	  	[*]	  	Aquantia	  	[*]
	
(4)
	  	[*]	  	Intel	  	[*]
	
(5)
	  	[*]	  	Aquantia	  	[*]
	
(6)
	  	[*]	  	Intel	  	[*]
	
(7)
	  	[*]	  	Intel	  	[*]
	
(8)
	  	[*]	  	Aquantia	  	[*]
	
(9)
	  	[*]	  	Intel	  	[*]
	
(10)
	  	[*]	  	Aquantia	  	[*]
	
(11)
	  	[*]	  	Aquantia	  	[*]
	
(12)
	  	[*]	  	Aquantia	  	[*]
	
(13)
	  	[*]	  	Aquantia	  	[*]
	
(14)
	  	[*]	  	Intel	  	[*]
	
(15)
	  	[*]	  	Intel/Aquantia	  	[*]
	
(16)
	  	[*]	  	Intel	  	[*]
	
(17)
	  	[*]	  	Aquantia	  	[*]
	
(18)
	  	[*]	  	Intel	  	[*]
	
(19)
	  	[*]	  	Aquantia	  	[*]
	
(20)
	  	[*]	  	Aquantia	  	[*]
	
(21)
	  	[*]	  	Aquantia	  	[*]
	
(22)
	  	[*]	  	Intel	  	[*]
	
(23)
	  	[*]	  	Intel/Aquantia	  	[*]
	
(24)
	  	[*]	  	Intel	  	[*]

 Milestone Definition 
 The below section
briefly summarizes each milestone listed in above table. 
 [*2 pages*]. 

Vendor validation for key components: 
 [*1 page*] 

Aquantia Reference Design Milestones 
 The following design milestones and
associated delivery dates are referenced for the purpose of [*]. 
 AQ1002 (90nm) 

			
	Deliverable/Milestone	  	Target Date
	
Preliminary Results of Intel Defined Electrical/IEEE Testing Matrix (10Gbps) as defined in Appendix C
	  	Done
	
Preliminary Results of Intel Defined Electrical/IEEE Testing Matrix (1Gbps) as defined in Appendix C
	  	11/08
	
Completion of Intel Defined Electrical/IEE Testing Matrix (1Gbps) as defined in Appendix C
	  	1/09
	
Completion of Intel Defined Electrical/IEEE Testing Matrix (10Gbps) as defined in Appendix C & FW 1.0 release
	  	1/09
	
Launch
	  	4/09

 Test Chip 1 (ADC) 40nm 

			
	Deliverable/Milestone	  	Target Date
	
Test Report
	  	Completed 6/08

 Test Chip 2 (Band Gap, DAC, LC Clock Synthesizers) 40nm 

			
	Deliverable/Milestone	  	Target Date
	
Tape out
	  	Completed 4/15/08
	
Preliminary Test Results
	  	11/08

 Test Chip 3 (Band Gap, DAC, LC Clock Synthesizers, ADC, line driver) 40nm 

			
	Deliverable/Milestone	  	Target Date
	
Tape out
	  	Completed 11/15/08
	
Preliminary Test Results
	  	3/09

  

									
	AQUANTIA	 		 	INTEL CORPORATION
					
	By:	 	/s/ Phil Delansay	 		 	By:	 	/s/ Pat Gelsinger
			
	Printed Name: Phil Delansay	 		 	Printed Name: Pat Gelsinger
			
	Title: CEO	 		 	Title: Sr. VP & GM, Digital Enterprise Group
					
	Date:	 	January 15, 2009	 		 	Date:	 	January 15, 2009

  

	[*] =	CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY
BRACKETS, IS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO
RULE 406 OF THE SECURITIES ACT OF 1933, AS AMENDED. 

 ATTACHMENT #3 TO [*] PRODUCT PROJECT STATEMENT 

Quality and Reliability CONFORMANCE REQUIREMENTS 

Sample Size May Change Per Risk Assessment 
  

											
	Stress	  	Lots Total	  	Units/Lot	  	  PPS Requirement  	  	  PRQ Requirement  	  	Notes
	
[*3 pages*]
	  	 	  	 	  	 	  	 	  	 

  

			
	 [*]
	  	By/ Between
	
[*]
	  	Intel/Aquantia
	
[*]
	  	Intel/Aquantia
	
[*]
	  	Intel/Aquantia

 These Q&R requirements may be adjusted, upon due consideration by both Intel and Aquantia at a peer-to-peer level, or by formal
re-negotiation and written acceptance, if so required. 
  

									
	AQUANTIA	 		 	INTEL CORPORATION
					
	By:	 	/s/ Phil Delansay	 		 	By:	 	/s/ Pat Gelsinger
			
	Printed Name: Phil Delansay	 		 	Printed Name: Pat Gelsinger
			
	Title: CEO	 		 	Title: Sr. VP & GM, Digital Enterprise Group
					
	Date:	 	January 15, 2009	 		 	Date:	 	January 15, 2009

  

	[*] =	CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY
BRACKETS, IS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO
RULE 406 OF THE SECURITIES ACT OF 1933, AS AMENDED. 

 ADDENDUM A 

PROJECT STATEMENT #2 – [*] PRODUCT 
  

 
  

	1.	INCORPORATION INTO AGREEMENT 

 Intel and Aquantia (the “Parties”) agree that this
Project Statement #2 (“Project Statement”) shall be attached to and incorporated in the “Agreement” as Attachment Number #2. For purposes of this Project Statement #2, the “Agreement” means the Master Purchase Agreement
between Intel Corporation and Aquantia Corporation dated January 15, 2009, as amended to-date. The purpose of this Project Statement #2 is to set forth the terms and conditions under which Aquantia shall develop and deliver a 10GbE dual MAC/PHY
device (“[*] Product”). The Parties agree that the date of this Project Statement #2 shall be August 15, 2012. 
 Any changes to the
specifications of [*] Product that are set forth in this Project Statement #2 shall be agreed to by the Parties in writing. 
  

	2.	 DEFINITIONS AND PRODUCT DESCRIPTION 

Aquantia shall combine Intel’s 10GbE dual MAC with Aquantia’s 10GbE dual Aspen PHY to create the [*] Product [*] on [*] 28nm process [*]. [*].
Both parties shall mutually agree to complete and approve [*] Tapeout engineering requirements. [*]. Intel and Aquantia shall agree that the [*] shall include features and functions necessary for [*] in order to ensure that [*]. 

Aquantia shall [*]. Intel’s dual MAC shall be delivered as a [*] with Aquantia performing [*] in order to deliver [*] devices to Intel. [*] Product
is a Custom Item. 
  

	3.	 PRICING 

3.1     Sample and/or Prototype Units. Upon availability and prior to [*] (or other dates subsequently agreed to by
the Parties) Intel may purchase sample or prototype units of [*] Product from Aquantia as follows: 
 3.2     All sample and/or
prototype units, regardless of spin (e.g., A0, A1, A2): Aquantia shall provide the first 200 samples to Intel at no cost. Intel may purchase additional samples at [*]. 
  

	3.3	 [*] Units Purchase Price 

Intel may purchase [*] at the pricing specified below following its delivery to Aquantia of Intel’s written confirmation that [*] Product has
received [*]. Following such notice Intel shall place purchase orders [*] units delivered to it in keeping with the purchase order terms specified in Sections 3 and 4 of the Master Purchase Agreement. 

[*] Unit Price on Intel purchase orders sent to Aquantia with a delivery date [*] shall be [*]. 

Prompt payment shall be computed from the latest of: 

[*]. 
  

	3.4	 The [*] below is based on [*]: 

[*] 
 Any changes in the UP shall be as mutually
agreed by the Parties. [*]. 
 
  

	4.	 NRE PAYMENT 

4.1          Payment: Intel shall pay [*] to Aquantia as NRE per table below. 

 

			
	 Activity Breakdown

 
	  	  
	
[*]
  
	  	 [*]

 

	
[*]
  
	  	 [*]

 

	
[*]
  
	  	 [*]

 

 4.2          [*] 

 

	    	Payment Schedule: 

  

			
	 Due on:

 
	  	  
	 [*]

 
	  	 [*]

 

	 [*]

 
	  	 [*]

 

	 [*]

 
	  	 [*]

 

	 [*]

 
	  	 [*]

 

 4.3          NRE: Intel shall pay Aquantia for non-recurring
engineering expenses (“NRE”) associated with the development of [*], according to the table above. This includes [*]. 
  

	 	    	 If [*] are necessary, then [*]. 

 

	 	    	 [*]. 

  

	 	    	 [*]. 

  

	5.	DEFINITIONS 

  

			
	1000BASE-CX	 	IEEE 802.3z Gigabit Ethernet Standard for short haul copper (up to 25m).
	1000BASE-LX	 	IEEE 802.3z Gigabit Ethernet Standard using long wavelength (1300nm) laser, typically over Single mode Fiber.
	1000BASE-SX	 	IEEE 802.3z Gigabit Ethernet Standard using short wavelength (850nm) laser, typically over Multi-mode Fiber.
	1000BASE-T	 	IEEE 802.3ab Gigabit Ethernet Standard Physical Layer definition for long haul copper (up to 100m) over 4 pair of Category 5 balanced copper
cabling.
	10GBASE-T	 	IEEE 802.3an
	802.3	 	IEEE standard that defines CSMA/CD and 10BASE-T.
	802.3ab	 	IEEE standard that defines 1000BASE-T.
	802.3u	 	IEEE standard that defines 100BASE-TX.
	802.3z	 	IEEE standard that defines 1000BASE-CX, 1000BASE-LX, 1000BASE-SX.
	A0	 	A0 is used to indicate the first revision of the silicon. If the next revision only changes metal layer, the number increments (e.g. A1). If
all (or most) layers change, the letter increments and the number resets to zero (e.g. B0).
	AFE	 	Analog Front End that converts digital signals to analog for input and output on physical interface.
	AoL	 	Alert-on-LAN.
	ASF	 	Alerting Standards Form.
	BRD	 	The library format for Cadence Allegro PCB designs
	CSMA/CD	 	Carrier Sense Multiple Access / Collision Detect. This is the type of bus protocol implemented by 802.3 Ethernet.
	CTE	 	Cold Temperature Elimination – a method to eliminate the need of testing at cold temperature at high volume production, while still
achieving quality / reliability requirements.
	DAC	 	Dual Address Cycle.
	DB	 	The library format of Synopsys synthesis libraries.
	DFT	 	Design For Testability.
	DMA	 	Direct Memory Access.
	DRC	 	Design Rule Check.

  

	[*] =	CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY
BRACKETS, IS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO
RULE 406 OF THE SECURITIES ACT OF 1933, AS AMENDED. 

			
	DSP	 	Digital Signal Processor.
	EEPROM	 	Electrically Erasable Programmable Read Only Memory.
	EEE	 	Energy Efficient Ethernet
	GMAC	 	Gigabit MAC.
	GMII	 	Gigabit Media Independent Interface.
	GPIO	 	General Purpose Input/Output. This is a software controllable input/output pin/pad.
	HDL	 	Hardware Description Language.

  

	[*] =	CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY
BRACKETS, IS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO
RULE 406 OF THE SECURITIES ACT OF 1933, AS AMENDED. 

			
	HSPICE	 	Industry standard models for package, analog, circuit simulation.
	IAS	 	Integration Architecture Specification – is the overall system specification for Barton Hills-LM/LC and shall be the reference point for
all functions and features.
	IBIS	 	An industry standard simulation / signal characterization model of IOs.
	IO	 	Input/Output. Typically refers to a silicon pin/pad.
	LOM	 	LAN-on-Motherboard.
	LVS	 	Layout Versus Schematic.
	MAC	 	Media Access Controller. The name of the logic that implements the 802.3 CSMA/CD standard.
	MAC Controller	 	The logic that provides the MAC function along with DMA and a host interface (e.g. PCI).
	MII	 	Media Independent Interface.
	Modelsim	 	Model Technology’s HDL simulator product.
	PCI-Express	 	Third Generation high performance I/O bus implemented with serial, point-to-point type interconnects for communication between two devices at
current data-rate of 2.5 Gbits/sec. Also known as “PCIE”.
	PDT	 	Intel and AQUANTIA Joint Program Development Team.
	PHY	 	Physical Layer Device. The device/block that implements the AFE.
	POR	 	Plan of Record.
	PPS & PRQ	 	There are two qualification levels designed to meet Intel’s and its customers’ product introduction and production ramp needs,
Pre-Production Samples (PPS) and Production Release Qualification (PRQ). PPS supports the unique and varied demands our businesses have in shipping limited quantities of customer qualification samples. At PRQ, Intel’s objective is to ship
unlimited quantity of commercial products that meet the Q&R requirements and are supported by the applicable Intel warranty agreements.
	PXE	 	Pre-boot execution Environment.
	RAM	 	Random Access Memory.
	SDF	 	Standard Delay Format.
	SerDes	 	Serializer-Deserializer connection used in Backplane – connection using high speed serial electrical interface, based on IEEE –
1000BaseT-CX; or Fiber interface, IEEE 1000BaseT LX/SX.
	SKU	 	Stock Keeping Unit.
	SPEF	 	Standard Parasitic Exchange Format
	Synopsys	 	Synthesis tool company. www.synopsys.com
	TBI	 	Ten Bit Interface.
	UTP	 	Unshielded Twisted Pair.
	VCS	 	Synopsys’s HDL simulator product.
	Verilog	 	An industry standard HDL language.
	WfM 2.0	 	Wired for Management 2.0 specification: an Intel initiative to improve manageability of desktop, mobile and server systems, decreasing total
cost of ownership.
	WoL	 	Wake on LAN: An IBM trademarked term, used in place of Remote Wake Up, which describes the capability of remotely bringing a PC from a low to
a high power state.
	ZOBI	 	Zero-Hours-Burn-In a method to eliminate the need of burn-in at high volume production while still achieving quality / reliability
requirements.

  

	6.	PROJECT MANAGEMENT 

 The Parties agree to assign dedicated project managers, engineering managers,
and other personnel to this project as specified below. The project managers shall exercise overall project responsibility for their respective Party: 

  

	[*] =	CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY
BRACKETS, IS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO
RULE 406 OF THE SECURITIES ACT OF 1933, AS AMENDED. 

 Program and Engineering Project Managers 

 

									
	Party	  	Name	  	Title	  	Phone*	  	Email
	 Intel

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

 

	 Intel

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

 

	 Intel

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

 

	 Intel

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

 

	 Intel

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

 

	 Intel

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

 

	 Aquantia

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

 

	 Aquantia

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

 

	 Aquantia

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

 

 In addition, when applicable, both Parties agree to assign cross-functional team members to the [*] Product project.
These members shall include employees of each Party representing, but not limited to, the following functions or disciplines: 
 Analog Engineering
(IO cells, PH, and noise analysis) 
 Applications Engineering 

Board Engineering 
 CAD Engineering (Layout,
DRC) 
 Customer Support 
 Digital
Engineering (ASIC and CMOS micro-architecture) 
 Software Engineering 

Foundry Support 
 Manufacturing Test
Engineering 
 Marketing 
 Operations

 Packaging Engineering 
 Product
Engineering 
 Production Operations and Document Control 

Quality & Reliability Engineering 

Silicon Validation 
  

	7.	 Termination 

  

	7.1	 [*] Product Project cancellation by Intel for convenience: 

Any other section of the Agreement notwithstanding, Intel may terminate this Project Statement for convenience at any time by written notice to
Aquantia. 
  

	7.2	 [*] Product project cancellation by Aquantia for convenience: 

Aquantia may not terminate this Project Statement for convenience. 

  

	[*] =	CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY
BRACKETS, IS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO
RULE 406 OF THE SECURITIES ACT OF 1933, AS AMENDED. 

	8.	Intellectual Property and Marking 

  

	8.1	Definitions 

 8.1.1     “Aquantia Field of
Use” means (i) physical layer (“PHY”) technology for Ethernet networking technologies, circuit design, modeling and process design methodologies, programs and flows that do not fall within the Intel Field of Use and are not
otherwise based in any way on Intel Confidential Information; (ii) dynamic back biasing technology that that does not fall within the Intel Field of Use and is not otherwise based in any way on Intel Confidential Information; and
(iii) additional technology, if any, expressly identified in the Project Statement. 
 8.1.2    
“Aquantia Product” means [*] 
 8.1.3     “Background IP” means
all Intellectual Property and Patents belonging to or controlled by either Party, (i) developed, conceived, obtained or acquired prior to the Effective Date of the Agreement or (ii) developed, conceived, obtained or acquired independently
of the Agreement or not as part of the approved Project Statement. 
 8.1.4     “Intel Field of
Use” means (i) media access controller (“MAC’) technology for Ethernet networking technologies; (ii) technology related to manufacturing, metrology, testing, inspection, architecture, functionality and/or power
management of (iii) Processors, (iv) Chipsets and (v) Intel processor based motherboards; and (vi) additional technology, if any, expressly identified in an applicable Project Statement. 

8.1.5     “Intellectual Property” means any and all intellectual property rights including all of
the following and all rights in, arising out of, or associated therewith: (i) procedures, designs, inventions, and discoveries; (ii) works of authorship, copyrights and other rights in works of authorship; (iii) mask work rights, and
(iv) know-how, show-how and trade secrets on a worldwide basis, but excluding all Patents issued or issuable thereon, and all trademarks, trade names, or other terms of corporate or product identification. 

8.1.6     “Patents” means all classes or types of patents (including, without limitation,
originals, divisions, continuations, continuations-in-part, extensions, renewals, reexaminations, or reissues), and applications for these classes or types of patent rights in all countries of the world (collectively, “Patent Rights”) that
are owned or controlled by the applicable Party during the term of the Agreement. 
 8.1.7     “Patent
Prosecution” means (i) preparing, filing and prosecuting patent applications (of all types), (ii) maintaining any Patents, and (iii) managing interference, reexamination or opposition proceedings relating to the foregoing.

 8.1.8     “Project” means the development of [*] Product during the term of this Project
Statement as part of an approved Project Statement. 
 8.1.9     “Project IP” means all
Intellectual Property and Patents developed or conceived under this Project Statement by one Party or both Parties as part of an approved Project Statement to develop [*] Products. Project IP does not include the Background IP of either Party. 

8.1.10     “[*] Product” means a product consisting of a single integrated circuit of the
integration of Intel’s 10GbE dual MAC with Aquantia’s 10GbE dual PHY described in the approved Project Statement to create [*] Product on [*] 28nm process. 

  

	[*] =	CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY
BRACKETS, IS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO
RULE 406 OF THE SECURITIES ACT OF 1933, AS AMENDED. 

	8.2	Intellectual Property and Patent Ownership 

 8.2.1    
Background IP. As between the Parties, Intel shall have exclusive ownership of Intel’s Background IP, and Aquantia shall have exclusive ownership of Aquantia’s Background IP. 

8.2.2     Protect IP 

8.2.2.1     Any and all Project IP, other than mask work rights, that falls within the Intel Field of Use, whether
solely or jointly developed, shall be owned solely by Intel (“Intel Owned IP”). Aquantia hereby assigns to Intel all of the Project IP developed or co-developed by Aquantia pursuant to this Project Statement that falls within the Intel
Field of Use. 
 8.2.2.2     Any and all Project IP that falls within the Aquantia Field of Use, whether solely
or jointly developed, and all mask work rights that are part of the Project IP, shall be owned solely by Aquantia (“Aquantia Owned IP”). Intel hereby assigns to Aquantia all of the Project IP developed or co-developed by Intel pursuant to
this Project Statement that falls within the Aquantia Field of Use. 
 8.2.2.3     Any Project IP that does not
fall within either the Intel Field of Use or the Aquantia Field of Use that is solely conceived by employees of one Party as part of the Project without any contribution, individually or jointly, of employees of the other Party shall be owned solely
by the Party whose employees conceived such Project IP. 
 8.2.2.4     Any Project IP that does not fall within
either the Intel Field of Use or the Aquantia Field of Use that is jointly conceived by employees of both parties as part of the Project (“Joint Out-of-Field Project IP”) shall be jointly owned. 

8.2.2.5     Subject to the licenses granted in this Project Statement and upon the expressed written approval of
the other Party, either Party may at its sole expense file a Patent and carry out Patent Prosecution on any Joint Out-of-Field Project IP and the non-filing Party shall assign and hereby does assign to the filing Party all of its ownership interest
in such Joint Out-of-Field Project IP and agrees to execute further instruments necessary for Patent Prosecution as reasonably requested by the filing Party. 

8.2.2.6     In the event either Party is unable to obtain the expressed written approval of the other Party
pursuant to Section 8.2.2.5 of this Project Statement, such Joint Out-of-Field Project IP shall be kept as a jointly-owned trade secret. 

8.2.3     Maskworks 

8.2.3.1     Sections 8.2.1 and 8.2.2 of this Project Statement notwithstanding, Aquantia shall own the mask works
for the Aquantia Product and [*] Product (each referred to as “Mask Works”). 
 8.2.3.2     The Mask
Works may include trade secrets of Intel. In addition and not in lieu of any obligation of confidentiality imposed by the Agreement with respect to Intel Confidential Information, Aquantia shall not disclose or otherwise make any part of Mask Works
available, in any form, to any person other than Aquantia employees whose job performance requires such access consistent with the exercise of Aquantia’s licenses under Section 8.3.3 of this Project Statement. Aquantia agrees to instruct
all such employees on these obligations with respect to use, copying, protection, and confidentiality of Mask Works. 
 8.2.3.3
    Upon written consent by Intel, Aquantia may deliver the Mask Works to Aquantia subcontractors approved by Intel in writing for the purpose of exercising Aquantia’s rights under Section 8.3.3 of this Project
Statement under an obligation of confidentiality at least as protective as that set forth in Section 12 of the Agreement. In the event of the termination of the Agreement, except for breach by Aquantia, pursuant to Aquantia exercising its
rights under Section 8.3.3.2. Aquantia may deliver the Mask Works to a mask or wafer fabrication subcontractor approved by Intel in writing, provided Aquantia complies with the conditions in Section 8.5 below. Intel consents to the Mask
Works being provided to [*]. 

  

	[*] =	CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY
BRACKETS, IS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO
RULE 406 OF THE SECURITIES ACT OF 1933, AS AMENDED. 

 8.2.3.4     Aquantia may not assign, sublicense, lease, or in any
other way transfer or disclose Mask Works to any third party or reproduce or distribute any part of the Mask Works except as expressly provided in this Project Statement. 

8.2.4     GDSII files 

8.2.4.1     Sections 8.2.1 and Section 8.2.2 of this Project Statement notwithstanding, Aquantia and Intel
shall jointly own the GDSII files for the [*] Product. Section 8.6 defines Intel’s right to use the GDSII files to exercise Intel’s make and have made rights for [*] Product. 

8.2.4.2     Each Party shall protect the GDSII files to the same extent as it protects its own similar Intellectual
Property. Because the GSDII files contain confidential information of both parties, each Party shall maintain the GDSII files as confidential information of the other Party subject to Section 12 of the Agreement as well as Section 8.6
below. Aquantia shall not deliver Intel GSDII files (for PCIE) to any third party company for any reason without written permission and approval from Intel. Intel shall not deliver Aquantia GDSII files for the PHY to any third party company for any
reason without written permission and approval from Aquantia. 
  

	8.3	 Licensing 

8.3.1     Aquantia grant to Intel. Subject to the terms of the Agreement, Aquantia hereby grants to Intel a
royalty-free, non-exclusive, nontransferable, non-sub licensable (except as expressly provided herein), irrevocable, worldwide license under Project IP and Aquantia Background IP used in the development of the [*] Product to: 

8.2.2.1     use and import and directly or indirectly sell, offer to sell and otherwise dispose of [*] Product;

 8.2.2.2     disclose (subject to Section 12 of the Agreement), use, copy, have copied, modify and have
modified Intellectual Property delivered to Intel by Aquantia as part of a Project Statement solely for the purposes of design validation, bug evaluation and repair of designs using [*] Product; 

8.2.2.3     use [*] Product, and to use, make, have made, sell, offer to sell and import Intel products that
incorporate or are otherwise adapted to operate with [*] Product. Intel shall further have the right to extend to direct or indirect customers of Intel a license under all of Aquantia’s Patent rights in the [*] Product to use, sell, offer to
sell or import Intel products that incorporate or are otherwise adapted to operate with [*] Product. 
 8.3.2    
API License. In addition to the licenses set forth above, Aquantia further grants to Intel a royalty free, non-exclusive, irrevocable, worldwide license to copy, display, perform, create derivative works and distribute Aquantia’s
API software which shall be provided in both object and source code form and which is more fully described in Attachment #2. 

8.3.3     Intel grant to Aquantia. Subject to the terms of the Agreement and for the term of the
Agreement, Intel hereby grants to Aquantia a royalty-free, non-exclusive, nontransferable, non-sub licensable, irrevocable (except for breach of the Agreement by Aquantia), worldwide license under Project IP and Intel Background IP used in the
development of the [*] Product to: 
 8.3.3.1     internally use, copy and have copied the technology delivered
to Aquantia by Intel as part of a Project Statement solely for the purposes of developing and supporting the [*] Product as specified in an approved Project Statement solely for the benefit of Intel; 

  

	[*] =	CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY
BRACKETS, IS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO
RULE 406 OF THE SECURITIES ACT OF 1933, AS AMENDED. 

 8.3.3.2     make, have made (subject to Section 8.5 (Consent for
Aquantia Products) the [*] Products solely for the benefit of Intel; and sell the [*] Product only to Intel; and to make and have made, use, import, offer for sale and sell the Aquantia Product subject to Intel approval provided in Section 8.5
(Consent for Aquantia Products). 
 8.3.4     Except as set forth in Section 8.3.3.2 in no event may Aquantia
exercise the foregoing license to develop, make, use, sell or otherwise distribute any Intel Background IP or Intel Project IP other than for Intel’s benefit. Aquantia shall have no right to make or use the [*] Product for its own use, or to
sell the [*] Product to anyone other than Intel. 
 8.3.5     The Parties acknowledge that nothing in the
foregoing is intended to restrict Aquantia from testing and validating the [*] Products to the extent necessary for the purpose of fulfilling its obligations under the Agreement. 

8.4     Have Made Rights. For purposes of exercising its have made rights granted under Sections of this Project
Statement (Licensing), Aquantia may deliver Intel Technology delivered to Aquantia by Intel only to those subcontractors approved in advance in writing by Intel. 

8.5     Consent for Aquantia Products. 

8.5.1     Prior to Aquantia’s initial release of the Aquantia Product, Aquantia shall [*] in order to ensure
that adequate security has been incorporated to prevent [*] within the Aquantia Product. Upon Intel’s foregoing written approval for the Aquantia Product, Aquantia may exercise its rights under the license granted in Section 8.3.3.2, unless and
until Aquantia desires to [*] submit such new method [*]. 
 8.5.2     In the event of the termination of the
Agreement, Aquantia may exercise its rights under the license granted in Section 8.3.3.2, but only with respect to Aquantia Products [*]. 

8.5.3     In the event of the termination of the Agreement, Aquantia represents and warrants that it shall [*]. 

8.6     Continuity of Supply 

8.6.1     Forecast and Manufacturing Cycle Time. 

8.6.1.1     Intel shall provide Aquantia with a rolling [*] forecast per the Agreement (“Forecast”) and
both Aquantia and Intel shall mutually agree to [*] for the Aquantia manufacturing cycle which is to be used to [*]. 
 8.6.1.2
    Aquantia’s manufacturing cycle time (“Manufacturing Cycle Time” or “MCT”) is [*]. 

8.6.1.3     Intel shall place non-cancellable purchase orders with lead time equal to or longer than MCT. 

8.6.2     Subject to the terms of the Agreement, Aquantia grants to Intel a worldwide, nonexclusive,
nontransferable, perpetual, irrevocable license to manufacture, or have manufactured, use and import and directly or indirectly sell, offer to sell and otherwise dispose of [*] Product as limited in this Section 8.6. Intel covenants and agrees that
it shall have the option to exercise the rights granted pursuant to this Section 8.6.2 upon the occurrence of one or more of the Trigger Events set forth in Section 8.6.2.1 below. 

8.6.2.1     A “Trigger Event” is any one of the following events (each, a “Trigger Event”):
[*]. 
 8.6.2.2     [*]. 

8.6.3     [*]. 

8.6.4     [*]. 

8.6.5     [*]. 

8.7     Product Markings. The [*] Product shall be marked as an Intel-branded device. Aquantia shall meet Intel’s
requirements for Intel branded products as required by Intel. 
 8.8     End of Life. Aquantia shall support [*]
design and Intel manufacturing requirements to at least [*], with annual evergreen renewal. If Aquantia needs to discontinue manufacture of [*] product, Aquantia shall provide [*] notification of discontinuance of manufacturing [*] product. 

  

	[*] =	CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY
BRACKETS, IS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO
RULE 406 OF THE SECURITIES ACT OF 1933, AS AMENDED. 

	9	DESIGNATED PROJECT MANAGERS AND TECHNICAL POINTS OF CONTACT 

  

									
	For Aquantia:	 		 	For Intel:
			
	[*]	 		 	[*]
			
	AQUANTIA	 		 	INTEL CORPORATION
					
	By:	 	/s/ Faraj Aalaei	 		 	By:	 	/s/ Dawn Moore
			
	Printed Name: Faraj Aalaei	 		 	Printed Name: Dawn Moore
			
	Title: CEO	 		 	GM, LAN Access Division
					
	Date:	 	8/17/12	 		 	Date:	 	8/20/12

  

	[*] =	CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY
BRACKETS, IS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO
RULE 406 OF THE SECURITIES ACT OF 1933, AS AMENDED. 

 ATTACHMENT #1 TO PROJECT STATEMENT #2: [*] PRODUCT 

REQUIRED FEATURES OF THE [*] PRODUCT 
 Project Summary: 

[*7 pages*] 
 There shall be full commitment from both sides to finish the testing
and coverage milestones on schedule even if this entails onsite support. 
  

									
	AQUANTIA	 		 	INTEL CORPORATION
					
	By:	 	/s/ Faraj Aalaei	 		 	By:	 	/s/ Dawn Moore
			
	Printed Name: Faraj Aalaei	 		 	Printed Name: Dawn Moore
			
	Title: CEO	 		 	GM, LAN Access Division
					
	Date:	 	8/17/12	 		 	Date:	 	8/20/12

  

	[*] =	CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY
BRACKETS, IS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO
RULE 406 OF THE SECURITIES ACT OF 1933, AS AMENDED. 

 ATTACHMENT #2 TO [*] PRODUCT PROJECT STATEMENT 

STATEMENT OF WORK (“SOW”) 
 This
Attachment #2 describes Key Milestones, deliverables and required dates throughout the Project. All subsequent changes or additions to these milestones, deliverables and dates are subject to ratification by Intel and Aquantia in meetings held by the
Program Managers at Intel and Aquantia, and recorded in the Meeting Minutes and Project Schedule. 
 Aquantia Deliverables and Milestones 

The table below represents a summary of the Aquantia & Intel deliverables, milestones, and associated delivery dates. [*]. 

 

							
	Section  
Reference  	  	Owner(s)	  	Deliverable/Milestone	  	Date
	  	  	  	(commit)
	1	  	Aquantia	  	[*]	  	[*]
	2	  	Aquantia	  	[*]	  	[*]
	3	  	Intel	  	[*]	  	[*]
	4	  	Aquantia	  	[*]	  	[*]
	5	  	Aquantia	  	[*]	  	[*]
	6	  	Aquantia	  	[*]	  	[*]
	7	  	Intel	  	[*]	  	[*]
	8	  	Intel	  	[*]	  	[*]
	9	  	Intel	  	[*]	  	[*]
	10	  	Aquantia	  	[*]	  	[*]
	11	  	Intel	  	[*]	  	[*]
	12	  	Aquantia	  	[*]	  	[*]
	13	  	Aquantia	  	[*]	  	[*]
	14	  	Intel	  	[*]	  	[*]
	15	  	Aquantia	  	[*]	  	[*]
	16	  	Aquantia	  	[*]	  	[*]
	17	  	Aquantia	  	[*]	  	[*]
	18	  	Aquantia	  	[*]	  	[*]
	19	  	Intel	  	[*]	  	[*]

 [*]. 
 Checkpoints with Aquantia 

					
	date	  	checkpoint	  	content
	[*]	  	[*]	  	[*]
	[*]	  	[*]	  	[*]
	[*]	  	[*]	  	[*]
	[*]	  	[*]	  	[*]
	[*]	  	[*]	  	[*]
	[*]	  	[*]	  	[*]
	[*]	  	[*]	  	[*]
	[*]	  	[*]	  	[*]
	
[*]
	  	 [*]
	  	 [*]

 
 Milestone Definition 

					
	Section  
Ref  	  	Deliverable/
Milestone	  	Milestone Definition
	[*]	  	[*]	  	[*]
	[*]	  	[*]	  	[*]
	[*]	  	[*]	  	[*]
	[*]	  	[*]	  	[*]
	[*]	  	[*]	  	[*]
	[*]	  	[*]	  	[*]
	[*]	  	[*]	  	[*]
	[*]	  	[*]	  	[*]
	[*]	  	[*]	  	[*]
	[*]	  	[*]	  	[*]
	[*]	  	[*]	  	[*]
	[*]	  	[*]	  	[*]
	[*]	  	[*]	  	[*]
	[*]	  	[*]	  	[*]
	[*]	  	[*]	  	[*]
	[*]	  	[*]	  	[*]
	[*]	  	[*]	  	[*]

 [*1 page*] 

 

									
	AQUANTIA	 		 	INTEL CORPORATION
					
	By:	 	/s/ Faraj Aalaei	 		 	By:	 	/s/ Dawn Moore
			
	Printed Name: Faraj Aalaei	 		 	Printed Name: Dawn Moore
			
	Title: CEO	 		 	GM, LAN Access Division
					
	Date:	 	8/17/12	 		 	Date:	 	8/20/12

  

	[*] =	CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY
BRACKETS, IS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO
RULE 406 OF THE SECURITIES ACT OF 1933, AS AMENDED. 

 ATTACHMENT #3 TO [*] PRODUCT PROJECT STATEMENT 

Quality and Reliability CONFORMANCE REQUIREMENTS 

Sample Size May Change Per Risk Assessment 
 These Q&R
requirements may be adjusted, upon due consideration by both Intel and Aquantia at a peer-to-peer level, or by formal re-negotiation and written acceptance, if so required. 

[*]. 
 [*] Requirements [*] 

					
	Stress	  	[*] Requirement [*]	  	Notes
	
[*]
	  	[*]	  	[*]
	
[*]
	  	[*]	  	[*]
	
[*]
	  	[*]	  	[*]
	
[*]
	  	[*]	  	[*]
	
[*]
	  	[*]	  	[*]
	
[*]
	  	[*]	  	[*]

 [*] Q&R Requirements 

											
	Stress	  	Lots Total	  	Units/Lot	  	QS Requirement  	  	PRQ Requirement  	  	Notes
	
[*]
	  	[*]	  	[*]	  	[*]	  	[*]	  	[*]
	
[*]
	  	[*]	  	[*]	  	[*]	  	[*]	  	[*]
	
[*]
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[*]
	  	[*]	  	[*]	  	[*]	  	[*]	  	[*]

 Notes: 
 [*6 pages*] 

 

			
	 [*]
	  	By/ Between
	
[*]
	  	Intel/Aquantia
	
[*]
	  	Intel/Aquantia
	
[*]
	  	Intel/Aquantia

 [*1 page*] 
 

 

									
	AQUANTIA	 		 	INTEL CORPORATION
					
	By:	 	/s/ Faraj Aalaei	 		 	By:	 	/s/ Dawn Moore
			
	Printed Name: Faraj Aalaei	 		 	Printed Name: Dawn Moore
			
	Title: CEO	 		 	GM, LAN Access Division
					
	Date:	 	8/17/12	 		 	Date:	 	8/20/12

  

  

	[*] =	CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY
BRACKETS, IS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO
RULE 406 OF THE SECURITIES ACT OF 1933, AS AMENDED. 

 ATTACHMENT #4 TO [*] PROJECT STATEMENT 

HVM Requirements and Customer returns support 
 [*]. 

 

							
	Activity	  	
Condition to enable

monitor
	  	Monitor flow	  	
Condition for

elimination

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

  

	[*] =	CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY
BRACKETS, IS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO
RULE 406 OF THE SECURITIES ACT OF 1933, AS AMENDED. 

									
	AQUANTIA	 		 	INTEL CORPORATION
					
	By:	 	/s/ Faraj Aalaei	 		 	By:	 	/s/ Dawn Moore
			
	Printed Name: Faraj Aalaei	 		 	Printed Name: Dawn Moore
			
	Title: CEO	 		 	GM, LAN Access Division
					
	Date:	 	8-18-12	 		 	Date:	 	8/20/12

  

	[*] =	CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY
BRACKETS, IS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO
RULE 406 OF THE SECURITIES ACT OF 1933, AS AMENDED. 

 ATTACHMENT #5 TO [*] PROJECT STATEMENT 

Test Requirements 
 [*]. 

 

			
	Test Module	  	Comments
	
[*]
	  	[*]
	
[*]
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[*]
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 5. [*] 
  

											
	Test	  	Method	  	Material	  	Temp	  	Repeat	  	Note
	
[*]
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	Criteria	  	Requirements
	
[*]
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	Correlation Item	  	Minimum quantity #	  	Comments	  	Success Criteria
	
[*]
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	AQUANTIA	 		 	INTEL CORPORATION
					
	By:	 	/s/ Faraj Aalaei	 		 	By:	 	/s/ Dawn Moore
			
	Printed Name: Faraj Aalaei	 		 	Printed Name: Dawn Moore
			
	Title: CEO	 		 	GM, LAN Access Division
					
	Date:	 	8/17/12	 		 	Date:	 	8/20/12

  

	[*] =	CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY
BRACKETS, IS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO
RULE 406 OF THE SECURITIES ACT OF 1933, AS AMENDED. 

 ADDENDUM A 

PROJECT STATEMENT #3 – [*] SINGLE PORT PRODUCT 
  

 
  

	1.	 INCORPORATION INTO AGREEMENT 

Intel and Aquantia (the “Parties”) agree that this Project Statement #3 (“Project Statement”) will be attached to and incorporated
in the “Agreement” as Attachment Number #3. For purposes of this Project Statement #3, the “Agreement” means the Master Purchase Agreement between Intel Corporation and Aquantia Corporation dated January 15, 2009, as amended
to-date. The purpose of this Project Statement #3 is to set forth the terms and conditions under which Aquantia shall develop and deliver a 10GbE Single Port MAC/PHY device (“[*] Product”). The Parties agree that the date of this Project
Statement #3 shall be July 26, 2012. 
 Any changes to the specifications of [*] Single Port Product that are set forth in this Project Statement
#3 must be agreed to by the Parties in writing. 
  

	2.	 DEFINITIONS AND PRODUCT DESCRIPTION 

Aquantia shall modify [*], and create the [*] Single Port Product on [*] 40nm process. [*] Single Port Product shall be delivered as tested devices to
Intel. [*] Single Port Product is a Custom Item. 
  

	3.	 PRICING 

  

	3.1	[*] Units Purchase Price 

 Intel may purchase [*] at the pricing specified below. Intel
shall place purchase orders [*] units delivered to it in keeping with the purchase order terms specified in Sections 3 and 4 of the Master Purchase Agreement and the [*] Product Project Statement #1, except as noted in this document. 

Prompt payment will be computed from the latest of: 

[*]. 
  

	3.2	 [*]. 

Intel shall place an initial purchase order of [*] from Aquantia with an order quantity of [*] and the [*]. Following the initial order both parties
agree to use the [*]. The supply of [*] is dependent on [*]. As such the [*]. Intel agrees to work with Aquantia [*]. If [*], both parties shall mutually agree to [*]. These situations may require [*]. Such units will be [*]. 

The parties shall agree that [*]. 
  

	3.3	 Product Markings 

The [*] Single Port Product shall be marked as an lntel-branded device. Aquantia shall meet Intel’s requirements for Intel branded products as
required by Intel. 
  

	3.4	 End of Life 

Aquantia shall support [*] Single Port Product design and Intel manufacturing requirements to at least [*], with annual evergreen renewal. If Aquantia
needs to discontinue manufacture of [*] Single Port Product, Aquantia shall provide [*] notification of discontinuance of manufacturing [*] Single Port Product. 
 

 

	4.	 PROJECT MANAGEMENT 

The Parties agree to assign dedicated project managers, engineering managers, and other personnel to this project as specified below. The project
managers will exercise overall project responsibility for their respective Party: 
 Program and Engineering Project Managers 

 

									
	Party	  	Name	  	Title	  	Phone#	  	Email
	 	 	 	 	 
	
Intel
	  	[*]	  	[*]	  	[*]	  	[*]
	 	 	 	 	 
	
Intel
	  	[*]	  	[*]	  	[*]	  	[*]
	 	 	 	 	 
	
Intel
	  	[*]	  	[*]	  	[*]	  	[*]
	 	 	 	 	 
	
Intel
	  	[*]	  	[*]	  	[*]	  	[*]
	 	 	 	 	 
	
Intel
	  	[*]	  	[*]	  	[*]	  	[*]
	 	 	 	 	 
	
Intel
	  	[*]	  	[*]	  	[*]	  	[*]
	 	 	 	 	 
	
Aquantia
	  	[*]	  	[*]	  	[*]	  	[*]
	 	 	 	 	 
	
Aquantia
	  	[*]	  	[*]	  	[*]	  	[*]
	 	 	 	 	 
	
Aquantia
	  	[*]	  	[*]	  	[*]	  	[*]

  

	[*] =	CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY
BRACKETS, IS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO
RULE 406 OF THE SECURITIES ACT OF 1933, AS AMENDED. 

 In addition, when applicable, both Parties agree to assign cross-functional team members to the [*] Product
project. These members will include employees of each Party representing, but not limited to, the following functions or disciplines: 
 Analog Engineering (IO
cells, PHY, and noise analysis) 
 Applications Engineering 
 Board
Engineering 
 CAD Engineering (Layout, DRC) 
 Customer Support

 Digital Engineering (ASIC and CMOS micro-architecture) 
 Software
Engineering 
 Foundry Support 
 Manufacturing Test Engineering

 Marketing 
 Operations 

Packaging Engineering 
 Product Engineering 

Production Operations and Document Control 
 Quality & Reliability
Engineering 
 Silicon Validation 
  

	8	DESIGNATED PROJECT MANAGERS AND TECHNICAL POINTS OF CONTACT 

  

									
	For Aquantia:	 		 	For Intel:
			
	[*]	 		 	[*]
			
	AQUANTIA	 		 	INTEL CORPORATION
					
	By:	 	/s/ Faraj Aalaei	 		 	By:	 	/s/ Dawn Moore
			
	Printed Name: Faraj Aalaei	 		 	Printed Name: Dawn Moore
			
	Title: CEO	 		 	GM, LAN Access Division
					
	Date:	 	July 30, 2012	 		 	Date:	 	8/1/12

  

	[*] =	CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY
BRACKETS, IS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO
RULE 406 OF THE SECURITIES ACT OF 1933, AS AMENDED. 

 ATTACHMENT #1 TO PROJECT STATEMENT #3: [*] SINGLE PORT PRODUCT 

REQUIRED FEATURES OF THE [*] SINGLE PORT PRODUCT 
 Project
Summary: 
  

			
	 [*]
	  	
[*]

	
[*]
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 [*] 
  

									
	AQUANTIA	 		 	INTEL CORPORATION
					
	By:	 	/s/ Faraj Aalaei	 		 	By:	 	/s/ Dawn Moore
			
	Printed Name: Faraj Aalaei	 		 	Printed Name: Dawn Moore
			
	Title: CEO	 		 	GM, LAN Access Division
					
	Date:	 	July 30, 2012	 		 	Date:	 	8/1/12

  

	[*] =	CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY
BRACKETS, IS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO
RULE 406 OF THE SECURITIES ACT OF 1933, AS AMENDED. 

 ADDENDUM A 

PROJECT STATEMENT #4 – [*] 
  

	1.	 INCORPORATION INTO AGREEMENT 

Intel and Aquantia (the “Parties”) agree that this Project Statement #4 (“Project Statement”) will be attached to and incorporated
in the “Agreement” as Attachment Number #4. For purposes of this Project Statement #4, the “Agreement” means the Master Purchase Agreement between Intel Corporation and Aquantia Corporation dated January 15, 2009, as amended
to-date. The purpose of this Project Statement #4 is to set forth the terms and conditions under which Aquantia shall meet Intel [*] requirements and deliver the 10GbE Dual Port MAC/PHY device (“[*] Product”). The Parties agree that the
date of this Project Statement #4 shall be November 8, 2012. [*] 
 Any changes to the specifications of [*] Dual Port Product that are set forth
in this Project Statement #4 must be agreed to by the Parties in writing. 
  

	2.	 DEFINITIONS AND PRODUCT DESCRIPTION 

Aquantia shall [*] and deliver the [*] Product Project Statement #1 Dual Port device, according to the following mutually agreed schedule. 

In addition, Intel agrees [*]. 
  

	2.1	SCHEDULE 

					
	PRODUCT	  	PRODUCTION [*]	  	PURCHASE ORDER PLACEMENT
	[*]	  	[*]	  	[*]
	[*]	  	[*]	  	[*]
	[*]	  	[*]	  	[*]
	[*]	  	[*]	  	[*]

  

	2.2	PART NUMBERS 

															
	MM#  	  	Supplier Part #	  	Product	  	Top Marking	  	Spec#	  	Step	  	Description	  	Status & Media  
	[*]	  	[*]	  	[*]	  	[*]	  	[*]	  	[*]	  	[*]	  	[*]
	[*]	  	[*]	  	[*]	  	[*]	  	[*]	  	[*]	  	[*]	  	[*]
	[*]	  	[*]	  	[*]	  	[*]	  	[*]	  	[*]	  	[*]	  	[*]
	[*]	  	[*]	  	[*]	  	[*]	  	[*]	  	[*]	  	[*]	  	[*]

  

	[*] =	CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY
BRACKETS, IS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO
RULE 406 OF THE SECURITIES ACT OF 1933, AS AMENDED. 

	3.	DESIGNATED PROJECT MANAGERS AND TECHNICAL POINTS OF CONTACT 

  

									
	For Aquantia:	 		 	For Intel:
			
	[*]	 		 	[*]
			
	AQUANTIA	 		 	INTEL CORPORATION
					
	By:	 	/s/ Faraj Aalaei	 		 	By:	 	/s/ Dawn Moore
			
	Printed Name: Faraj Aalaei	 		 	Printed Name: Dawn Moore
			
	Title: CEO	 		 	GM, LAN Access Division
					
	Date:	 	11/14/2012	 		 	Date:	 	11/19/12

  

	[*] =	CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY
BRACKETS, IS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO
RULE 406 OF THE SECURITIES ACT OF 1933, AS AMENDED. 

 *ADDENDUM A 

PROJECT STATEMENT #5 – [*] 
  

 
  

	1.	INCORPORATION INTO AGREEMENT 

 Intel and Aquantia (the “Parties”) agree that this
Project Statement #5 (“Project Statement”) will be attached to and incorporated in the “Agreement” as Attachment Number #5. For purposes of this Project Statement #5, the “Agreement” means the Master Purchase Agreement
between Intel Corporation and Aquantia Corporation dated January 15, 2009, as amended to-date. The purpose of this Project Statement #5 is to set forth the terms and conditions under which Aquantia shall meet Intel [*] requirements and deliver
the 10GbE Dual Port MAC/PHY device (“[*] Product”). The Parties agree that the date of this Project Statement #5 shall be December 7, 2012. 

Any changes to the specifications of [*] Dual Port Product that are set forth in this Project Statement #5 must be agreed to by the Parties in writing.

  

	2.	DEFINITIONS AND PRODUCT DESCRIPTION 

 The purpose of this Addendum is to [*]. In order to
accomplish this, the Parties agree to the following: 
 Intel contributions: 

 

	•	 	 [*] in order to address issues of cash flow for Aquantia. 

 

	•	 	 Intel shall [*] for [*], to enable Aquantia to [*]. 

 

	•	 	 Intel agrees to [*]. Both parties will mutually agree to [*]. 

 

	•	 	 Intel agrees to [*]. Intel shall [*]. 

 

	•	 	 Intel shall [*] in order to [*]. 

Aquantia contributions 
  

	•	 	 Aquantia shall [*], according to the following mutually agreed Schedule and [*]. Both parties agree to [*].

  

	•	 	 For deliveries starting in [*], Aquantia shall [*]. Such [*] (per the Agreement). 

 

	•	 	 Aquantia agrees to [*]. 

In the event that Aquantia [*], this will be a “Trigger Event”, and the Parties agree to follow Section 8.6 CONTINUITY OF SUPPLY in Project
Statement #1 [*] Product. If both parties cannot solve the Trigger Event from these Section 2 terms during the cure period, Intel shall [*]. 
 2.1
          SCHEDULE 

																	
	  	 	Dec	 	Jan	 	Feb	 	Mar	 	Apr	 	May	 	Jun	 	Total
	
[*]
	 	[*]	 	[*]	 	[*]	 	[*]	 	[*]	 	[*]	 	[*]	 	[*]
	
[*]
	 	[*]	 	[*]	 	[*]	 	[*]	 	[*]	 	[*]	 	[*]	 	[*]
	
[*]
	 	[*]	 	[*]	 	[*]	 	[*]	 	[*]	 	[*]	 	[*]	 	[*]
	
[*]
	 	[*]	 	[*]	 	[*]	 	[*]	 	[*]	 	[*]	 	[*]	 	[*]

 2.2           [*] Forecast Report 12/10/2012 

																													
	Product  	 	  Media  	 	JAN
’13	 	 FEB

’13
	 	 MAR

’13
	 	 APR

’13
	 	 MAY

’13
	 	 JUN

’13
	 	 JUL

’13
	 	 AUG

’13
	 	 SEP

’13
	 	 OCT

’13
	 	 NOV

’13
	 	 DEC

’13
	 	TOTAL
FORECAST
	
[*]
	 	[*]	 	[*]	 	[*]	 	[*]	 	[*]	 	[*]	 	[*]	 	[*]	 	[*]	 	[*]	 	[*]	 	[*]	 	[*]	 	[*]

 
 2.3
          PART NUMBERS 

															
	MM#	 	Supplier Part #  	 	Product	 	Top Marking	 	Spec#	 	Step	 	Description	 	Status & Media
	
[*]
	 	[*]	 	[*]	 	[*]	 	[*]	 	[*]	 	[*]	 	[*]
	
[*]
	 	[*]	 	[*]	 	[*]	 	[*]	 	[*]	 	[*]	 	[*]
	
[*]
	 	[*]	 	[*]	 	[*]	 	[*]	 	[*]	 	[*]	 	[*]
	
[*]
	 	[*]	 	[*]	 	[*]	 	[*]	 	[*]	 	[*]	 	[*]

  

	3.	DESIGNATED PROJECT MANAGERS AND TECHNICAL POINTS OF CONTACT 

  

									
	For Aquantia:	 		 	For Intel:
			
	[*]	 		 	[*]
			
	AQUANTIA	 		 	INTEL CORPORATION
					
	By:	 	/s/ Faraj Aalaei	 		 	By:	 	/s/ Dawn Moore
			
	Printed Name: Faraj Aalaei	 		 	Printed Name: Dawn Moore
			
	Title: CEO	 		 	GM, LAN Access Division
					
	Date:	 	12/17/2012	 		 	Date:	 	1/16/13

  

	[*] =	CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY
BRACKETS, IS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO
RULE 406 OF THE SECURITIES ACT OF 1933, AS AMENDED. 

 ADDENDUM A 

PROJECT STATEMENT #6 — [*] PAYMENT 
  

 
  

	1.	INCORPORATION INTO AGREEMENT 

 Intel and Aquantia (the “Parties”) agree
that this Project Statement #6 (“Project Statement”) will be attached to and incorporated into the “Agreement” as Attachment Number #6. For purposes of this Project Statement #6, the
“Agreement” means the Master Purchase Agreement between Intel Corporation and Aquantia Corporation dated January 15, 2009, as amended to-date. The Parties agree that the date of this Project Statement #6 shall be July 10, 2013.

 Any changes to this agreement must be agreed to by both Parties in writing. 

 

	2.	 DEFINITIONS AND PRODUCT DESCRIPTION 

 

	2.1	 PRICE SCHEDULE AND PART NUMBERS 

The new [*] pricing schedule through Q4 2015 is agreed as follows 
  

																							
	Product  	 	MM#	 	 Q3

2013
	 	 Q4

2013
	 	 Q1

2014
	 	 Q2

2014
	 	 Q3

2014
	 	 Q4

2014
	 	 Q1

2015
	 	 Q2

2015
	 	 Q3

2015
	 	
Q4
 2015

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

  

	2.2	CONDITIONAL [*] PAYMENT STRUCTURE 

 Solely with respect to [*] unit prices made during the new [*]
pricing schedule listed above in section 2.1 the Parties have agreed to the conditional [*] payment structure. An [*] payment of [*] will be made by Intel to Aquantia on each [*] unit: [*] For clarity, while the intent is to ensure Aquantia receives
payment within [*] of the shipment of the Intel [*] where applicable, nothing is construed to make an objectively reasonable delay in payment of the [*] payment a material breach. 

This Report shall be treated as Intel Confidential information under Section 12 of the Agreement. For clarification, this does not require the
disclosure of the underlying Intel sales order to the Intel Customer. 
  

	3.	 FORECAST 

Intel shall, in good faith and due diligence, work to gain new customer business with [*] LOM Products based on the Price Schedule in Section 2.1
above. 
 Both Parties agree the forecast and new customer business are subject to change and is not a commitment. Aquantia understands that Intel
customer demand is dependent on market conditions and other factors beyond Intel’s control. This may result in demand being increased, reduced, or eliminated. 
  

	4.	 LEGAL EFFECT ON AGREEMENT 

All provisions of the Agreement shall remain in full force and effect. In the event of a conflict between this Amendment and the Agreement, this
Amendment shall take precedence. 

  

	[*] =	CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY
BRACKETS, IS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO
RULE 406 OF THE SECURITIES ACT OF 1933, AS AMENDED. 

 AMENDMENT
#             
 TO 

THE AGREEMENT 

BETWEEN 

INTEL AND AQUANTIA 

THIS AMENDMENT #            
(“Amendment”) to the Master Purchase Agreement between INTEL CORPORATION, a Delaware corporation, which includes its Affiliates, having its principal place of business at
2200 Mission College Boulevard, Santa Clara, California 95052, USA (“Intel”), and AQUANTIA CORPORATION, having its principal place of business at 700 Tasman Drive, Milpitas,
CA 95035 (“Aquantia”), referred to collectively as the “Parties” or each individually as “Party’. 

RECITALS 
  

	 	•	 	 Effective January 15, 2009, the Parties entered into a Technology Collaboration Agreement
(“Agreement”); 

  

	 	•	 	 The Parties now wish to amend the Agreement by incorporating a new Project Statement #6, attached to this Amendment.

 IN WITNESS WHEREOF, the Parties have caused this Sixth
Amendment to be executed by their respective corporate officers or agents. 
  

									
	FOR AQUANTIA:	 		 	FOR INTEL:
			
	[*]	 		 	 Dawn Moore
 General Manager - Network
Division

			
	AQUANTIA	 		 	INTEL CORPORATION
					
	By:	 	/s/ Faraj Aalaei	 		 	By:	 	/s/ Dawn Moore
			
	Printed Name: Faraj Aalaei	 		 	Printed Name: Dawn Moore
			
	Title: CEO	 		 	GM, Networking Division
					
	Date:	 	 	 		 	Date:	 	 

  

	[*] =	CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY
BRACKETS, IS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO
RULE 406 OF THE SECURITIES ACT OF 1933, AS AMENDED. 

 ADDENDUM A 

PROJECT STATEMENT #7 – [*] LEAD FREE QUALIFICATION 
  

	1.0	INCORPORATION INTO AGREEMENT 

 This Project [*] Lead Free Qualification is entered into by
and between Intel Corporation a Delaware corporation, having its principal place of business at 2200 Mission College Boulevard. Santa Clara, CA 95052, and its Affiliates (“Intel”), Aquantia Corporation, Inc., a California corporation
having its principal place of business at 700 Tasman Drive, Milpitas, CA 95035, and its Affiliates (“Aquantia”), effective as of the date of the last signature (the “Effective Date”). 

The parties agree that this Project Statement shall be attached to and incorporated in the “Agreement”, entered a certain Master Development,
Purchasing and License Agreement as of January 8, 2009 (the “Agreement”). For purposes of this Project Statement, the Agreement means the Master Purchase Agreement between Intel Corporation and Aquantia Corporation dated
January 15, 2009, as amended to- date (“Agreement”). The parties agree to this Project Statement to the Agreement to set forth terms and conditions under which Aquantia will provide a framework
for managing the activities used by both parties in order to perform the required tasks to successfully have the [*] lead Free product qualified, investigate all failures, implement appropriate corrective actions, and to pursue continuous
improvements The parties agree that any work related to this Project Statement, even if commenced by the parties prior to the Effective Date, is covered by the terms of this Project Statement. 

The terms and conditions of the Agreement are incorporated herein by reference. To the extent the terms and conditions of this Project Statement #1
conflict with the Agreement, this Project Statement will govern. Capitalized terms used herein, but not defined in this Project Statement will have the meanings set forth in the Agreement. 

Any changes to the specifications of the [*] Product that are set forth in this Project Statement must be agreed to by the parties in writing. 

 

	2.0	[*] SCHEDULES 

  

	2.1	Intel Corporation will [*] listed in Table A as required for the [*]. Intel Corporation shall [*]. 

  

	3.0	[*] PAYMENT STRUCTURE 

  

	3.1	Refer to the section 2.2 of Amendment #6 

 Table A 

 

			
	Activities	  	Qualification Costs
	[*]	  	[*]
	[*]	  	[*]
	[*]	  	[*]
	[*]	  	[*]
	[*]	  	[*]

 Schedule A 
  

			
	Activities	  	Total PO Cost
	[*]	  	[*]

 Schedule B 
  

			
	Payment Milestone	  	QA Payment
	[*]	  	[*]
	[*]	  	[*]

 
  

	4.0	[*] SCHEDULE 

  

																							
	Sept-14	  	Oct-14	  	Nov-14	  	Dec-14	  	Jan-15	  	Feb-15	  	Mar-15	  	Apr-15	  	May-15	  	Jun-15	  	Jul-15	  	Aug-15
	[*]	  	[*]	  	[*]	  	[*]	  	[*]	  	[*]	  	 	  	[*]	  	 	  	 	  	[*]	  	[*]
	 	  	 	  	[*]	  	[*]	  	 	  	 	  	[*]	  	[*]	  	 	  	 
	 	  	 	  	[*]	  	[*]	  	 	  	[*]	  	[*]	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	[*]	  	[*]	  	 	  	[*]	  	[*]	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	[*]	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	[*]	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 

  

									
	Aquantia Corporation	 		 	INTEL CORPORATION
					
	By:	 	/s/ Faraj Aalaei	 		 	By:	 	/s/ Dawn Moore
			
	Printed Name: Faraj Aalaei	 		 	Printed Name: Dawn Moore
					
	Title:	 	CEO	 		 	Title:	 	General Manager, Networking Division
					
	Date:	 	9/26/14	 		 	Date:	 	9/25/2014

  

	[*] =	CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY
BRACKETS, IS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO
RULE 406 OF THE SECURITIES ACT OF 1933, AS AMENDED. 

 ADDENDUM A 

PROJECT STATEMENT #6 – [*] PRODUCT 
  

 
  

	1.0	INCORPORATION INTO AGREEMENT 

 This [*] Project Statement #6 (“Project Statement”) is
entered into by and between Intel Corporation a Delaware corporation, having its principal place of business at 2200 Mission College Boulevard, Santa Clara, CA 95052, and its Affiliates (“Intel”), Aquantia Corporation, Inc., a California
corporation having its principal place of business at 700 Tasman Drive, Milpitas, CA 95035, and its Affiliates (“Aquantia”), hereinafter collectively referred to as (the “Parties”). The effective date of this Project Statement #6
is the date of the last signature (the “Effective Date”). 
 The Parties agree that this Project Statement shall be attached to and
incorporated in the Agreement. For purposes of this Project Statement, the Agreement means the Master Purchase Agreement between Intel Corporation and Aquantia Corporation dated January 15, 2009, as amended to-date (“Agreement”). 

Any changes to the specifications of the [*] Product that are set forth in this Project Statement shall be agreed to by the Parties in writing. If any
terms in the Agreement and the other previous amendments conflict with any terms in this Project Statement, the terms in this Project Statement shall govern regarding the subject matter herein. 

 

	2.0	 PURPOSE 

The purpose of this Project Statement is to set forth the terms and conditions under which Aquantia shall qualify and label Intel-branded single, dual
and quad port 10GBASE-T PHY devices based upon Aquantia’s 28nm Aspen standard 10GBASE-T product line (“[*] Product”). 
  

	3.0	 DEFINITIONS AND PRODUCT DESCRIPTION 

Aquantia shall qualify and label Intel-branded single, dual and quad port 10GBASE-T PHY based upon Aquantia’s Aspen standard 10GBASE-T product line
to create the [*] Product on [*] 28nm process. The product features, packaging and interface specifications shall remain unchanged relative to the current 28nm Aspen standard product offering. Product packages shall include 3 SKUs. The quad port SKU
are housed in a 25x25mm 576 Ball FCBGA package and the dual and single port devices will be housed in pin compatible 19x19mm 324 Ball FCBGA packages. Intel and Aquantia shall agree upon a Qualification Schedule that meets Intel’s PRQ
(Production Release Qualification) specifications. 
  

	3.0	TECHNICAL REQUIREMENTS 

	3.1	The [*] Product includes [*]. 

  

	3.1	Features list 

  

							
	
Description
	  	 Vendor Response

Quad Port
	  	Vendor Response
Dual Port	  	Vendor Response
Single Port
	
Packaging and SKUs
	  	 	  	 	  	 
	
Part number(s) [*]
	  	[*] X557AT4	  	[*] X557AT2	  	[*] X557AT
	
Package sizes available 
	  	 25mm x 25mm
	  	 19mm x 19mm
	  	 19mm x 19mm

	
[*]
	  	[*]	  	[*]	  	[*]
	
[*]
	  	[*]	  	[*]	  	[*]
	
[*]
	  	[*]	  	[*]	  	[*]
	
[*]
	  	[*]	  	[*]	  	[*]
	
[*]
	  	[*]	  	[*]	  	[*]
	
[*]
	  	[*]	  	[*]	  	[*]
	
[*]
	  	[*]	  	[*]	  	[*]
	
[*]
	  	[*]	  	[*]	  	[*]
	 	  	 	  	 	  	 
	
MAC Interface Options and System Support
	  	 	  	 	  	 

  

	[*] =	CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY
BRACKETS, IS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO
RULE 406 OF THE SECURITIES ACT OF 1933, AS AMENDED. 

							
	 [*]
	  	[*]	  	[*]	  	[*]
	
[*]
	  	[*]	  	[*]	  	[*]
	
[*]
	  	[*]	  	[*]	  	[*]
	
[*]
	  	[*]	  	[*]	  	[*]
	
[*]
	  	[*]	  	[*]	  	[*]
	
[*]
	  	[*]	  	[*]	  	[*]
	
[*]
	  	[*]	  	[*]	  	[*]
	
[*]
	  	[*]	  	[*]	  	[*]
	
[*]
	  	[*]	  	[*]	  	[*]
	
[*]
	  	[*]	  	[*]	  	[*]
	
[*]
	  	[*]	  	[*]	  	[*]
	
[*]
	  	[*]	  	[*]	  	[*]
	
[*]
	  	[*]	  	[*]	  	[*]
	
[*]
	  	[*]	  	[*]	  	[*]
	
[*]
	  	[*]	  	[*]	  	[*]
	
[*]
	  	[*]	  	[*]	  	[*]
	
[*]
	  	[*]	  	[*]	  	[*]
	
[*]
	  	[*]	  	[*]	  	[*]
	 	  	 	  	 	  	 
	
Line Side BASE-T Interface
	  	 	  	 	  	 
	
[*]
	  	[*]	  	[*]	  	[*]
	
[*]
	  	[*]	  	[*]	  	[*]
	
[*]
	  	[*]	  	[*]	  	[*]
	
[*]
	  	[*]	  	[*]	  	[*]
	
[*]
	  	[*]	  	[*]	  	[*]
	
[*]
	  	[*]	  	[*]	  	[*]
	
[*]
	  	[*]	  	[*]	  	[*]
	
[*]
	  	[*]	  	[*]	  	[*]
	
[*]
	  	[*]	  	[*]	  	[*]
	
[*]
	  	[*]	  	[*]	  	[*]
	
[*]
	  	[*]	  	[*]	  	[*]
	
[*]
	  	[*]	  	[*]	  	[*]
	
[*]
	  	[*]	  	[*]	  	[*]
	
[*]
	  	[*]	  	[*]	  	[*]
	
[*]
	  	[*]	  	[*]	  	[*]
	
[*]
	  	[*]	  	[*]	  	[*]
	
[*]
	  	[*]	  	[*]	  	[*]
	
[*]
	  	[*]	  	[*]	  	[*]
	
[*]
	  	[*]	  	[*]	  	[*]
	
[*]
	  	[*]	  	[*]	  	[*]
	
[*]
	  	[*]	  	[*]	  	[*]
	
[*]
	  	[*]	  	[*]	  	[*]
	
[*]
	  	[*]	  	[*]	  	[*]

  

	3.2.1	 Power features include: [*]. 

 

	3.2.2	 Test, manufacture, and support features include: [*]. 

 

	4.0	 PRICING 

  

	4.1	 Sample and/or Prototype Units. Upon availability and prior to [*] or other dates subsequently agreed to by the
Parties, Intel may purchase sample or prototype units of [*] Product from Aquantia as follows: 

  

	 	4.1.1	 Aquantia shall provide [*] cumulative sample and/or prototype units to Intel at [*]. Intel may purchase additional
samples as follows: [*]. 

 
  

	4.2	 [*] Units Purchase Price. Intel may purchase [*] at the pricing specified below following its delivery to
Aquantia of Intel’s written confirmation that [*] Product has received [*]. Following such notice Intel shall place purchase orders at [*] units delivered to it in keeping with the purchase order terms specified in Sections 3 and 4 of the
Agreement. 

  

	4.3	 Prompt payment shall be computed from the latest of: [*]. 

 

	4.4	 The [*] Schedule below is [*] and is based on [*]. 

[*] Schedule 
  

							
	Year	 	Quad	 	Dual	 	Single
	
[*]
	 	[*]	 	[*]	 	[*]
	
[*]
	 	[*]	 	[*]	 	[*]
	
[*]
	 	[*]	 	[*]	 	[*]
	
[*]
	 	[*]	 	[*]	 	[*]
	
[*]
	 	[*]	 	[*]	 	[*]
	
[*]
	 	[*]	 	[*]	 	[*]

 [*]. 
  

	5.0	NRE PAYMENT. 

  

	5.1	Payment: Intel shall pay [*]. The $/unit is [*] for all skus. This adder is in addition to the UP Schedule in Section 4.4. 

  

	5.2	[*]. 

  

	5.3	[*]. 

  

  

	[*] =	CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY
BRACKETS, IS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO
RULE 406 OF THE SECURITIES ACT OF 1933, AS AMENDED. 

	5.4	 Prior to the delivery of prototypes, Intel may cancel the design and engineering work under the SOW for the [*] Product
by written notice to Aquantia, whereupon Aquantia shall cease work in connection with the Product. 

  

	6.0	DEFINITIONS 

  

			
	1000BASE-CX	 	IEEE 802.3z Gigabit Ethernet Standard for short haul copper (up to 25m).
	1000BASE-LX	 	IEEE 802.3z Gigabit Ethernet Standard using long wavelength (1300nm) laser, typically over Single mode Fiber.
	1000BASE-SX	 	IEEE 802.3z Gigabit Ethernet Standard using short wavelength (850nm) laser, typically over Multi-mode Fiber.
	1000BASE-T	 	IEEE 802.3ab Gigabit Ethernet Standard Physical Layer definition for long haul copper (up to 100m) over 4 pair of Category 5 balanced copper
cabling.
	10GBASE-T	 	IEEE 802.3an
	802.3ab	 	IEEE standard that defines 1000BASE-T.
	802.3u	 	IEEE standard that defines 100BASE-TX.
	802.3z	 	IEEE standard that defines 1000BASE-CX, 1000BASE-LX, 1000BASE-SX.
	 	 	 
	AFE	 	Analog Front End that converts digital signals to analog for input and output on physical interface.
	AoL	 	Alert-on-LAN.
	ASF	 	Alerting Standards Form.
	BRD	 	The library format for Cadence Allegro PCB designs
	CTE	 	Cold Temperature Elimination – a method to eliminate the need of testing at cold temperature at high volume production, while still
achieving quality / reliability requirements.
	DB	 	The library format of Synopsys synthesis libraries.
	DFT	 	Design For Testability.
	 	 	 
	DRC	 	Design Rule Check.
	DSP	 	Digital Signal Processor.
	EEPROM	 	Electrically Erasable Programmable Read Only Memory.
	EEE	 	Energy Efficient Ethernet
	GMAC	 	Gigabit MAC.
	GMII	 	Gigabit Media Independent Interface.
	GPIO	 	General Purpose Input/Output. This is a software controllable input/output pin/pad.
	HDL	 	Hardware Description Language.
	HSPICE	 	Industry standard models for package, analog, circuit simulation.
	IAS	 	Integration Architecture Specification – is the overall system specification for Barton Hills-LM/LC and shall be the reference point for
all functions and features.
	IBIS	 	An industry standard simulation / signal characterization model of IOs.
	IO	 	Input/Output. Typically refers to a silicon pin/pad.
	LOM	 	LAN-on-Motherboard.
	LVS	 	Layout Versus Schematic.
	MAC Controller	 	The logic that provides the MAC function along with DMA and a host interface (e.g. PCI).
	Modelsim	 	Model Technology’s HDL simulator product.
	PDT	 	Intel and AQUANTIA Joint Program Development Team.
	PHY	 	Physical Layer Device. The device/block that implements the AFE.
	POR	 	Plan of Record.
	PPS & PRQ	 	There are two qualification levels designed to meet Intel’s and its customers’ product introduction and production ramp needs,
Pre-Production Samples (PPS) and Production Release Qualification (PRQ). PPS supports the unique and varied demands our businesses have in shipping limited quantities of customer qualification samples. At PRQ, Intel’s objective is to ship
unlimited quantity of commercial products that meet the Q&R requirements and are supported by the applicable Intel warranty agreements.
	SerDes	 	Serializer-Deserializer connection used in Backplane or to other Ethernet device or connection using high speed serial electrical interface,
such as – 10GBase-KR, Serial Gigabit Media Independent interface (SGMII), XFI, and RXUAI.

  

	[*] =	CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY
BRACKETS, IS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO
RULE 406 OF THE SECURITIES ACT OF 1933, AS AMENDED. 

			
	SKU	 	Stock Keeping Unit.
	Synopsys	 	Synthesis tool company.
	VCS	 	Synopsys’s HDL simulator product.
	Verilog	 	An industry standard HDL language.
	XAUI	 	High speed 10 Gigabit Attachment Unit Interface (RXAUI denotes reduced pin count)
	XFI	 	10Gb Framer Interface
	ZOBI	 	Zero-Hours-Burn-In a method to eliminate the need of burn-in at high volume production while still achieving quality / reliability
requirements.

  

	7.0	PROJECT MANAGEMENT 

 The Parties agree to assign dedicated project managers,
engineering managers, and other personnel to this project as specified below. The project managers shall exercise overall project responsibility for their respective Party: 

  

	[*] =	CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY
BRACKETS, IS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO
RULE 406 OF THE SECURITIES ACT OF 1933, AS AMENDED. 

 Program and Engineering Project Managers 

 

									
	Party	  	Name	  	Title	  	Phone #	  	Email
	Intel	  	[*]	  	[*]	  	[*]	  	[*]
	Intel	  	[*]	  	[*]	  	[*]	  	[*]
	Intel	  	[*]	  	[*]	  	[*]	  	[*]
	Intel	  	[*]	  	[*]	  	[*]	  	[*]
	Intel	  	[*]	  	[*]	  	[*]	  	[*]
	Intel	  	[*]	  	[*]	  	[*]	  	[*]
	Aquantia	  	[*]	  	[*]	  	[*]	  	[*]
	Aquantia	  	[*]	  	[*]	  	[*]	  	[*]
	Aquantia	  	[*]	  	[*]	  	[*]	  	[*]

 In addition, when applicable, both Parties agree to assign cross-functional team members to the [*] Product project.
These members shall include employees of each Party representing, but not limited to, the following functions or disciplines: 
 Analog Engineering
(IO cells, PHY, and noise analysis) 
 Applications Engineering 

Board Engineering 
 CAD Engineering (Layout,
DRC) 
 Customer Support 
 Digital
Engineering (ASIC and CMOS micro-architecture) 
 Software Engineering 

Foundry Support 
 Manufacturing Test
Engineering 
 Marketing 
 Operations

 Packaging Engineering 
 Product
Engineering 
 Production Operations and Document Control 

Quality & Reliability Engineering 

Silicon Validation 
  

	8.0	 TERMINATION 

  

	 	8.1	 [*] Product project cancellation by Intel for convenience: Any other section of the Agreement notwithstanding, Intel may
terminate this Project Statement for convenience at any time by written notice to Aquantia. In such cases, the cancellation penalties in the amount of [*] Payment, shall apply. 

 

	 	8.2	 [*] Product project cancellation by Aquantia for convenience: Aquantia may not terminate this Project Statement for
convenience. 

  

	9.0	 INTELLECTUAL PROPERTY AND MARKING 

 

	 	9.1	 Definitions 

  

	 	9.1.1	 “Aquantia Field of Use” means (i) physical layer (“PHY”) technology for Ethernet networking
technologies, circuit design, modeling and process design methodologies, programs and flows that do not fall within the Intel Field of Use and are not otherwise based in any way on Intel Confidential Information, (ii) dynamic back biasing
technology that does not fall within the Intel Field of Use and is not otherwise based in any way on Intel Confidential Information; and (iii) additional technology, if any, expressly identified in the Project Statement. 

 

	 	9.1.2	 “Background IP” means all Intellectual Property and Patents belonging to or controlled by either Party,
(i) developed, conceived, obtained or acquired prior to the Effective Date of the Agreement or (ii) developed, conceived, obtained or acquired independently of the Agreement or not as part of the approved Project Statement.

  

	 	9.1.3	 “Intel Field of Use” means [*] 

  

	[*] =	CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY
BRACKETS, IS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO
RULE 406 OF THE SECURITIES ACT OF 1933, AS AMENDED. 

	 	9.1.4	 “Intellectual Property” means any and all intellectual property rights including all of the following and all
rights in, arising out of, or associated therewith: (i) procedures, designs, inventions, and discoveries; (ii) works of authorship, copyrights and other rights in works of authorship; (iii) mask work rights, and (iv) know-how,
show-how and trade secrets on a worldwide basis, but excluding all Patents issued or issuable thereon, and all trademarks, trade names, or other forms of corporate or product identification. 

 

	 	9.1.5	 “Patents” means all classes or types of patents (including, without limitation, originals, divisions,
continuations, continuations-in-part, extensions, renewals, reexaminations, or reissues), and applications for these classes or types of patent rights in all countries of the world (collectively, “Patent Rights”) that are owned or
controlled by the applicable Party during the term of the Agreement. 

  

	 	9.1.6	 “Patent Prosecution” means (i) preparing, filing and prosecuting patent applications (of all types),
(ii) maintaining any Patents, and (iii) managing interference, reexamination or opposition proceedings relating to the foregoing. 

  

	 	9.1.7	 “Project” means the development of [*] Product during the term of this Project Statement as part of an
approved Project Statement. 

  

	 	9.1.8	 “Project IP” means all Intellectual Property and Patents developed or conceived under this Project Statement
by one Party or both Parties as part of an approved Project Statement to develop [*] Products. Project IP does not include the Background IP of either Party. 

 

	 	9.2	 INTELLECTUAL PROPERTY AND PATENT OWNERSHIP 

 

	 	9.2.1	 Background IP. As between the Parties, Intel shall have exclusive ownership of Intel’s Background IP, and Aquantia
shall have exclusive ownership of Aquantia’s Background IP. 

  

	 	9.2.2	 Any and all Project IP that falls within the Aquantia Field of Use, whether solely or jointly developed, and all mask
work rights that are part of the Project IP, shall be owned solely by Aquantia (“Aquantia Owned IP”). Intel hereby assigns to Aquantia all of the Project IP developed or co-developed by Intel pursuant to this Project Statement that falls
within the Aquantia Field of Use. Any and all Project IP that falls within the Intel Field of Use, whether solely or jointly developed, and all mask work rights that are part of the Project IP that falls within the Intel Field of Use shall be owned
solely by Intel (“Intel Owned IP”). Aquantia hereby assigns to Intel all of the Project IP developed or co-developed by Aquantia pursuant to this Project Statement that falls within the Intel Field of Use. 

 

	 	9.2.3	 Any Project IP that does not fall within either the Intel Field of Use or the Aquantia Field of Use that is solely
conceived by employees of one Party as part of the Project without any contribution, individually or jointly, of employees of the other Party shall be owned solely by the Party whose employees conceived such Project IP. Any jointly-created Project
IP which does not fall within the Aquantia Filed of Use or the Intel Field of Use will be owned as provided for in the following Sections. 

  

	 	9.2.4	 Subject to the licenses granted in this Project Statement and upon the express written approval of the other Party,
either Party may at its sole expense file a Patent and carry out Patent Prosecution on any jointly developed out-of-field Project IP and the non-filing Party shall assign and hereby does assign to the filing Party all of its ownership interest in
such Joint Out-of-Field Project IP and agrees to execute further instruments necessary for Patent Prosecution as reasonably requested by the filing Party. 

  

	 	9.2.5	 In the event either Party is unable to obtain the expressed written approval of the other Party, such Joint Out-of-Field
Project IP shall be kept as a jointly-owned trade secret. 

  

	 	9.3	 MASKWORKS 

  

	 	9.3.1	 Sections 9.2.1 and 9.2.2 of this Project Statement notwithstanding, Aquantia shall own the mask works for the [*]
Product (each referred to as “Mask Works”). 

 
  

	 	9.4	 LICENSING 

  

	 	9.4.1	 Aquantia grant to Intel. Subject to the terms of the Agreement, Aquantia hereby grants to Intel a royalty-free,
non-exclusive, nontransferable, non-sub licensable (except as expressly provided herein), 

  

	[*] =	CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY
BRACKETS, IS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO
RULE 406 OF THE SECURITIES ACT OF 1933, AS AMENDED. 

	 	 
irrevocable, worldwide license under Aquantia-owned Project IP and Aquantia Background IP used in the development of the [*] Product to: 

 

	 	9.4.1.1	 use and import and directly or indirectly sell, offer to sell and otherwise dispose of [*] Product;

  

	 	9.4.1.2	 use [*] Product, and to use, make, have made, sell, offer to sell and import Intel products that incorporate or are
otherwise adapted to operate with [*] Product. Intel shall further have the right to extent to direct or indirect customers of Intel a license under all of Aquantia’s Patent rights in the [*] Product to use, sell, offer to sell or import Intel
products that incorporate or are otherwise adapted to operate with [*] Product. 

  

	 	9.4.2	 API License. In addition to the licenses set forth above, Aquantia further grants to Intel a royalty free,
non-exclusive, irrevocable, worldwide license to copy, display, perform, create derivative works and distribute Aquantia’s API software which shall be provided in both object and source code form and which is more fully described in Attachment
#2. 

  

	 	9.4.3	 Intel grant to Aquantia. Commencing at the time Aquantia makes the first commercial sale to Intel of the [*] Product and
expiring at the time of the last commercial sale to Intel, Intel hereby grants to Aquantia a royalty-free, non-exclusive, nontransferable, non-sub licensable, revocable, worldwide license under Intel-owned Patent Rights that read on technology owned
by Intel within the Intel Field of Use (and only for technology that is provided to Aquantia under this Project Statement) to make the [*] Products solely for the benefit of Intel; and sell the [*] Product only to Intel. Aquantia may only provide or
transfer the [*] Product to Intel. Intel grants Aquantia no other licenses or other rights including, but not limited to, patent, copyright, trademark, trade name, service mark or other intellectual property licenses or rights with respect to the
[*] Product, by implication, estoppel or otherwise, except for the licenses expressly granted in this section. 

  

	 	9.4.4	 The Parties acknowledge that nothing in the foregoing is intended to restrict Aquantia from testing and validating the
[*] Products to the extent necessary for the purpose of fulfilling its obligations under the Agreement. 

  

	 	9.5	 CONTINUITY OF SUPPLY 

  

	 	9.5.1	 Forecast and Manufacturing Cycle Time 

 

	 	9.5.1.1	 Intel shall provide Aquantia with a rolling [*] forecast per the Agreement (“Forecast”) and both Aquantia and
Intel shall mutually agree to [*] for the Aquantia manufacturing cycle which is to be used to [*]. 

  

	 	9.5.1.2	 Aquantia’s manufacturing cycle time (“Manufacturing Cycle Time” or “MCT”) is [*]. PO’s to
be place by 10th of each month. 

  

	 	9.5.1.3	 Maximum expedite charge should not exceed [*]. 

 

	 	9.5.1.4	 [*]. 

  

	 	9.5.2	 Subject to the terms of the Agreement, Aquantia grants to Intel a worldwide, nonexclusive, nontransferable, perpetual,
irrevocable license to manufacture, or have manufactured, use and import and directly or indirectly sell, offer to sell and otherwise dispose of [*] Product as limited in this Section 9.5. Intel covenants and agrees that it shall have the
option to exercise the rights granted pursuant to this Section 9.5.2 upon the occurrence of one or more of the Trigger Events set forth in Section 9.5.2.1 below. 

 

	 	9.5.2.1	 A “Trigger Event” is any one of the following events (each, a “Trigger Event”): [*].

  

	 	9.5.2.2	 [*]. 

  

	 	9.5.3	 [*]. 

  

	 	9.5.4	 [*]. 

  

	 	9.5.5	[*]. 

  

	 	9.6	Product Markings. The [*] Product shall be marked as an Intel-branded device. Aquantia shall meet Intel’s requirements for Intel branded products as required by Intel. 

 

	 	9.7	End of Life. Aquantia shall support [*] design and Intel manufacturing requirements to at least [*], with annual evergreen renewal. If Aquantia needs to discontinue manufacture of [*] product, Aquantia shall
provide [*] notification of discontinuance of manufacturing [*] product. 

  

	 	9.8	[*]. 

	 	

	 	9.8.1	Intel to [*]. 

  

	 	9.8.2	This [*] is contingent upon [*] as called out in attachment #1. 

  

	 	9.8.3	If Intel [*], Intel to [*]. If Intel [*], then Intel will [*]. 

  

	 	9.8.4	For [*] other than described in 9.8.1, Intel agrees to [*], however, if an Intel customer [*]. 

  

	[*] =	CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY
BRACKETS, IS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO
RULE 406 OF THE SECURITIES ACT OF 1933, AS AMENDED. 

	 	9.8.5	Applies to all general releases of software drivers and Intel firmware. 

 DESIGNATED PROJECT MANAGERS
AND TECHNICAL POINTS OF CONTACT 
  

									
			
	AQUANTIA:	 		 	INTEL:
			
	[*]	 		 	[*]
			
	AQUANTIA	 		 	INTEL CORPORATION
					
	By:	 	/s/ Faraj Aalaei	 		 	By:	 	/s/ Dawn Moore
			
	Printed Name: Faraj Aalaei	 		 	Printed Name: Dawn Moore
			
	Title: CEO	 		 	General Manager, Networking Division
					
	Date:	 	1/16/15	 		 	Date:	 	Jan 22, 2015

  

	[*] =	CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY
BRACKETS, IS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO
RULE 406 OF THE SECURITIES ACT OF 1933, AS AMENDED. 

 ATTACHMENT #1 TO PROJECT STATEMENT #6: 

REQUIRED FEATURES OF THE [*] PRODUCT 
 The product features,
packaging and interface specifications shall [*]. 
 In addition to these datasheets contents, below we have called out some specific requirements that go beyond the
current content of the respective datasheets referenced above. 
 Table 1: [*] 

 

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

 [*]. 

  

	[*] =	CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY
BRACKETS, IS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO
RULE 406 OF THE SECURITIES ACT OF 1933, AS AMENDED. 

									
	AQUANTIA	 		 	INTEL CORPORATION
					
	By:	 	/s/ Faraj Aalaei	 		 	By:	 	/s/ Dawn Moore
			
	Printed Name: Faraj Aalaei	 		 	Printed Name: Dawn Moore
			
	Title: CEO	 		 	GM, LAN Access Division
					
	Date:	 	1/16/15	 		 	Date:	 	Jan. 22, 2015

  

	[*] =	CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY
BRACKETS, IS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO
RULE 406 OF THE SECURITIES ACT OF 1933, AS AMENDED. 

 ATTACHMENT #2 TO [*] PRODUCT PROJECT STATEMENT #6 

STATEMENT OF WORK (“SOW”) 
 This
Attachment #2 describes Key Milestones, deliverables and required dates throughout the Project. All subsequent changes or additions to these milestones. deliverables and dates are subject to ratification by Intel and Aquantia in meetings held by the
Program Managers at Intel and Aquantia, and recorded In the Meeting Minutes and Project Schedule. 
 Aquantia Deliverables and Milestones 

The table below represents a summary of the Aquantia & Intel deliverables, milestones, and associated deliver dates. [*]. Each milestone is briefly defined in the
section below the table. 
  

					
	Milestone	  	Owner 	  	Date
	 	  	 	  	(commit)
	
[*]
	  	Aquantia	  	[*]
	
[*]
	  	Aquantia	  	[*]
	
[*]
	  	Aquantia	  	[*]
	
[*]
	  	Aquantia	  	[*]
	
[*]
	  	Aquantia	  	[*]
	
[*]
	  	Aquantia	  	[*]
	
[*]
	  	Intel	  	[*]
	
[*]
	  	Aquantia	  	[*]
	
[*]
	  	Aquantia	  	[*]
	
[*]
	  	Intel	  	[*]
	
[*]
	  	Aquantia	  	[*]
	
[*]
	  	Aquantia	  	[*]
	
[*]
	  	Aquantia	  	[*]
	
[*]
	  	Aquantia	  	[*]
	
[*]
	  	Intel	  	[*]
	
[*]
	  	Intel	  	[*]
	
[*]
	  	Intel	  	[*]
	
[*]
	  	Intel	  	[*]
	
[*]
	  	Intel	  	[*]

 Note: [*]. 
 [*]: 

 

			
	[*]	 	Owner
	
[*]
	 	Aquantia
	
[*]
	 	Aquantia
	
[*]
	 	Aquantia
	
[*]
	 	Aquantia
	
[*]
	 	Aquantia
	
[*]
	 	Aquantia
	
[*]
	 	Aquantia
	
[*]
	 	Aquantia
	
[*]
	 	Aquantia
	
[*]
	 	Intel
	
[*]
	 	Intel
	
[*]
	 	Intel

 [*1 page*] 
  

									
	AQUANTIA	 		 	INTEL CORPORATION
					
	By:	 	/s/ Faraj Aalaei	 		 	By:	 	/s/ Dawn Moore
			
	Printed Name: Faraj Aalaei	 		 	Printed Name: Dawn Moore
			
	Title: CEO	 		 	GM, LAN Access Division
					
	Date:	 	1/16/15	 		 	Date:	 	Jan. 22, 2015

  

	[*] =	CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY
BRACKETS, IS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO
RULE 406 OF THE SECURITIES ACT OF 1933, AS AMENDED. 

 ATTACHMENT #3 TO [*] PRODUCT PROJECT STATEMENT #6 

QUALITY AND RELIABILITY CONFORMANCE REQUIREMENTS 

SAMPLE SIZE MAY CHANGE PER RISK ASSESSMENT 
 These Q&R
requirements may be adjusted, upon due consideration by both Intel and Aquantia at a peer-to-peer level, or by formal re-negotiation and written acceptance, if so required. 

[*]. 
 [*] Requirements [*]: 

 

					
	Stress	  	[*] Requirement [*]	  	Notes
	[*]	  	[*]	  	[*]
	[*]	  	[*]	  	[*]
	[*]	  	[*]	  	[*]
	[*]	  	[*]	  	[*]
	[*]	  	[*]	  	[*]
	[*]	  	[*]	  	[*]

 [*] Requirements 
 [*] 

 

											
	Stress	 	Lots Total	 	Units/Lot	  	QS Requirement	  	PRQ Requirement	  	Notes
	[*]	 	[*]	 	[*]	  	[*]	  	[*]	  	[*]
	[*]	 	[*]	 	[*]	  	[*]	  	[*]	  	[*]
	[*]	 	[*]	 	[*]	  	[*]	  	[*]	  	[*]
	[*]	 	[*]	 	[*]	  	[*]	  	[*]	  	[*]
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	[*]	 	[*]	 	[*]	  	[*]	  	[*]	  	[*]
	[*]	 	[*]	 	[*]	  	[*]	  	[*]
	[*]	 	[*]	 	[*]	  	[*]	  	[*]	  	[*]
	[*]	 	[*]	 	[*]	  	[*]	  	[*]	  	[*]
	[*]	 	[*]	 	[*]	  	[*]	  	[*]	  	[*]
	[*]	 	[*]	 	[*]	  	[*]	  	[*]	  	[*]
	[*]	 	[*]	 	[*]	  	[*]	  	[*]	  	[*]
	[*]	 	[*]	 	[*]	  	[*]	  	[*]	  	[*]
	[*]	 	[*]	 	[*]	  	[*]	  	[*]	  	[*]
	[*]	 	[*]	 	[*]	  	[*]	  	[*]	  	[*]
	[*]	 	[*]	 	[*]	  	[*]	  	[*]	  	[*]

 
 [*] 

 

											
	Stress	 	Lots Total	 	Units/Lot	  	QS Requirement	  	PRQ Requirement	  	Notes
	[*]	 	[*]	 	[*]	  	[*]	  	[*]	  	[*]
	[*]	 	[*]	 	[*]	  	[*]	  	[*]	  	[*]
	[*]	 	[*]	 	[*]	  	[*]	  	[*]	  	[*]
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	[*]	 	[*]	 	[*]	  	[*]	  	[*]	  	[*]
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	[*]	 	[*]	 	[*]	  	[*]	  	[*]	  	[*]
	[*]	 	[*]	 	[*]	  	[*]	  	[*]	  	[*]
	[*]	 	[*]	 	[*]	  	[*]	  	[*]	  	[*]
	[*]	 	[*]	 	[*]	  	[*]	  	[*]	  	[*]
	[*]	 	[*]	 	[*]	  	[*]	  	[*]	  	[*]
	[*]	 	[*]	 	[*]	  	[*]	  	[*]	  	[*]
	[*]	 	[*]	 	[*]	  	[*]	  	[*]	  	[*]
	[*]	 	[*]	 	[*]	  	[*]	  	[*]	  	[*]
	[*]	 	[*]	 	[*]	  	[*]	  	[*]	  	[*]

 [*] 
  

											
	Stress	 	Lots Total	 	Units/Lot	  	QS Requirement	  	PRQ Requirement	  	Notes
	[*]	 	[*]	 	[*]	  	[*]	  	[*]	  	[*]
	[*]	 	[*]	 	[*]	  	[*]	  	[*]	  	[*]
	[*]	 	[*]	 	[*]	  	[*]	  	[*]	  	[*]
	[*]	 	[*]	 	[*]	  	[*]	  	[*]	  	[*]
	[*]	 	[*]	 	[*]	  	[*]	  	[*]	  	[*]
	[*]	 	[*]	 	[*]	  	[*]	  	[*]	  	[*]
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	[*]	 	[*]	 	[*]	  	[*]	  	[*]	  	[*]
	[*]	 	[*]	 	[*]	  	[*]	  	[*]	  	[*]
	[*]	 	[*]	 	[*]	  	[*]	  	[*]	  	[*]
	[*]	 	[*]	 	[*]	  	[*]	  	[*]	  	[*]
	[*]	 	[*]	 	[*]	  	[*]	  	[*]	  	[*]
	[*]	 	[*]	 	[*]	  	[*]	  	[*]	  	[*]
	[*]	 	[*]	 	[*]	  	[*]	  	[*]	  	[*]
	[*]	 	[*]	 	[*]	  	[*]	  	[*]	  	[*]
	[*]	 	[*]	 	[*]	  	[*]	  	[*]	  	[*]

 
 Notes: 

[*6 pages*] 
  

			
	 	  	By/ Between
	 	  	Intel/Aquantia
	 	  	Intel/Aquantia
	 	  	Intel/Aquantia

 Receivables Deliverables 
  

							
	Deliverable	  	Delivered By	  	Received by	  	Due
	[*]	  	 Aquantia
	  	 Intel
	  	[*]
	[*]	  	 Intel
	  	 Aquantia
	  	[*]
	[*]	  	 Aquantia
	  	 Intel
	  	[*]
	[*]	  	 Aquantia
	  	 Intel
	  	[*]
	[*]	  	 Aquantia
	  	 Intel
	  	[*]
	[*]	  	 Aquantia
	  	 Intel
	  	[*]
	[*]	  	 Aquantia
	  	 Intel
	  	[*]
	[*]	  	 Aquantia
	  	 Intel
	  	[*]
	[*]	  	 Aquantia
	  	 Intel
	  	[*]
	[*]	  	 Aquantia
	  	 Intel
	  	[*]
	[*]	  	 Aquantia
	  	 Intel
	  	[*]

 These are Q&R requirements may be adjusted, upon due consideration by both Intel and Aquantia at a peer-to-peer
level, or by format re-negotiation and written acceptance, if so required. 
  

									
	AQUANTIA	 		 	INTEL CORPORATION
					
	By:	 	/s/ Faraj Aalaei	 		 	By:	 	/s/ Dawn Moore
			
	Printed Name: Faraj Aalaei	 		 	Printed Name: Dawn Moore
			
	Title: CEO	 		 	GM, LAN Access Division
					
	Date:	 	1/16/15	 		 	Date:	 	Jan 22, 2015

  

	[*] =	CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY
BRACKETS, IS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO
RULE 406 OF THE SECURITIES ACT OF 1933, AS AMENDED. 

 ATTACHMENT #4 TO [*] PROJECT STATEMENT #6 

HVM Requirements and Customer return support 
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	AQUANTIA	 		 	INTEL CORPORATION
					
	By:	 	/s/ Faraj Aalaei	 		 	By:	 	/s/ Dawn Moore
			
	Printed Name: Faraj Aalaei	 		 	Printed Name: Dawn Moore
			
	Title: CEO	 		 	GM, LAN Access Division
					
	Date:	 	1/16/15	 		 	Date:	 	Jan 22, 2015

  

	[*] =	CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY
BRACKETS, IS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO
RULE 406 OF THE SECURITIES ACT OF 1933, AS AMENDED. 

 ATTACHMENT #5 TO [*] PROJECT STATEMENT #6 

Test Requirement 
 [*5 pages*] 

 

									
	AQUANTIA	 		 	INTEL CORPORATION
					
	By:	 	/s/ Faraj Aalaei	 		 	By:	 	/s/ Dawn Moore
			
	Printed Name: Faraj Aalaei	 		 	Printed Name: Dawn Moore
			
	Title: CEO	 		 	GM, LAN Access Division
					
	Date:	 	1/16/15	 		 	Date:	 	Jan 22, 2015

  

	[*] =	CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY
BRACKETS, IS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO
RULE 406 OF THE SECURITIES ACT OF 1933, AS AMENDED. 

 AMENDMENT #1 

TO THE AGREEMENT BETWEEN 
 INTEL AND
AQUANTIA 
 Intel Corporation (“Intel”) and Aquantia Corp. (“Aquantia”) entered into a Master Purchase Agreement dated
January 15, 2009 which has been amended from time-to-time (the “Agreement”). On July 10, 2013, the parties entered into that certain Project Statement #6—[*] Payment (“Project Statement #6”). The parties now seek to enter
into this Amendment #1 (“Amendment #1”) in order to modify Project Statement #6 as follows as of January 1, 2016 (“Effective Date”): 

	 	1.	 Extension of Price Schedule. Section 2.1 of Project Statement #6 is deleted in its entirety and replaced
with the following: 

  

	 	    	 2.1 PRICE SCHEDULE AND PART NUMBERS 

	 	    	 The new [*] pricing schedule through September 30, 2016 (“End Date”) is agreed as follows:

																													
	Product	 	MM#	 	 Q3

2013
	 	 Q4

2014
	 	 Q1

2014
	 	 Q2

2014
	 	 Q3

2014
	 	 Q4

2014
	 	 Q1

2015
	 	 Q2

2015
	 	 Q3

2015
	 	 Q4

2015
	 	 Q1

2016
	 	 Q2

2016
	 	 Q3

2016

	 														 
	
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	 	2.	 No other changes. Except as otherwise stated in this Amendment #1, all terms and conditions of the
Agreement shall remain in full force and effect through the End Date. All terms herein shall have the same meaning as in the Agreement unless otherwise defined in this Amendment #1. 

Each party has caused this Amendment #1 to be signed by its duly authorized representative. 

 

					
	Aquantia Corp.	 		 	Intel Corporation
			
	/s/ Kamal Dalmia	 		 	/s/ Stephen Schultz
	Signature	 		 	Signature
			
	Kamal Dalmia	 		 	Stephen Schultz
	Printed Name	 		 	Printed Name
			
	SVP Sales & Mktg	 		 	General Manager, Networking Division
	Title	 		 	Title
			
	10/27/16	 		 	November 1, 2016
	Date	 		 	Date

  
 [*] =
CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, IS
FILED WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 406 OF
THE SECURITIES ACT OF 1933, AS AMENDED. 

 ATTACHMENT #8 TO PROJECT STATEMENT #1 

 

	1.	INCORPORATION INTO AGREEMENT 

 Intel and Aquantia (the “Parties”) agree
that this Attachment #8 (“Attachment”) will be attached to and incorporated into the Project Statement #1 of Addendum A of the Master Purchase Agreement between Intel Corporation and Aquantia Corp. dated January 15, 2009, as amended to
date (“Agreement”). The terms of this Addendum supersede any and all other terms entered into as they relate to pricing in both “Project Statement #1 – [*] Product”, dated January 15, 2009 and “Project Statement #6
– [*] Payment,” dated July 10, 2013. The parties have agreed pricing for the [*] product through September 30, 2016 and now desire to document their agreed pricing for units purchased from October 1, 2016 through December 31, 2020. The
effective date of this Attachment is the date signed by the second signing party (“Effective Date”). 
 Any changes to this
Attachment must be agreed to by both Parties in writing. 

	2.	PRODUCT AND PRICING DESCRIPTION 

 The new [*] pricing is agreed to as follows: 

 

							
	 	 	 	 
	  	 	 2016 (Oct-Dec)
  
	 	2017	 	2018-2020
	 	 	 	 
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	2.	FORECAST 

 This Attachment is not dependent upon volumes, forecasts, or other market conditions,
and is not a commitment to purchase any set unit quantity. 
 [Signature page follows] 

AGREED AND ACCEPTED: 
  

									
	Intel Corporation:	 		 	Aquantia Corp.
					
	By:	 	/s/ Stephen Schultz	 		 	By:	 	/s/ Kamal Dalmia

									
					
	Print Name:	 	Stephen Schultz	 		 	Print Name:	 	Kamal Dalmia

									
					
	Title:	 	General Manager, Networking Division	 		 	Title:	 	SVP Sales & Mktg

									
					
	Date:	 	November 1, 2016	 		 	Date:	 	10/27/16

  
 [*] =
CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, IS
FILED WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 406 OF
THE SECURITIES ACT OF 1933, AS AMENDED.

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