Document:

Exhibit

Exhibit 10.12
PICO Holdings, Inc.
Nonemployee Director Compensation Policy

		
	1.
	General

The PICO Holdings, Inc. Nonemployee Director Compensation Policy (the “Policy”) is designed to provide for the compensation of each member of the board of directors (the “Board”) of PICO Holdings, Inc. (the “Company”) who is a Nonemployee Director (as defined in the PICO Holdings, Inc. 2014 Equity Incentive Plan (the “EIP”)) (each, a “Nonemployee Director”).  The Policy will become effective on January 1, 2017 and will continue in effect until its termination by the Board.  The Policy will replace and supersede any and all compensation policies or programs previously established or maintained by the Company with respect to Nonemployee Directors.

		
	2.
	Administration

The Policy will be administered by the Board.  The Board will have the sole discretion and authority to administer, interpret, amend and terminate the Policy, and the decisions of the Board will in every case be final and binding on all persons having an interest in the Policy.

		
	3.
	Eligibility

Each Nonemployee Director will be eligible to receive the compensation set forth in the Policy in accordance with the terms of the Policy.  Such compensation will be paid or granted, as applicable, automatically and without further action of the Board to each Nonemployee Director. 

		
	4.
	Annual Retainers

(a)General.  Subject to Sections 4(b), 4(c) and 4(d), each Nonemployee Director will be eligible to receive annual retainers (each, an “Annual Retainer”) in the values set forth in the following table, as applicable, for each calendar year of service as (i) a chairperson, lead independent director and/or member of the Board and (ii) a chairperson of a committee of the Board (“Committee”).
	
				
	Type of Annual Retainer
	Dollar Value
Per Calendar Year If Paid Fully in Cash
(“Cash Dollar Value”)
	Dollar Value
Per Calendar Year If Paid Fully in RSUs
(“RSU Dollar Value”)

	Board
	Chair
	$30,000
	$37,500

	Lead Independent Director
	$20,000
	$25,000

	Member
	$50,000
	$62,500

	Audit Committee
	Chair
	$20,000
	$25,000

	Compensation Committee
	Chair
	$15,000
	$18,750

	Corporate Governance and Nominating Committee
	Chair
	$10,000
	$12,500

For clarity, an individual will not be eligible to receive any type of Annual Retainer set forth in the table above (the “Table”) unless he or she is a Nonemployee Director on the applicable payment or grant date.  Further, for clarity, each Nonemployee Director will be eligible to receive each type of Annual Retainer set forth in the Table that is applicable to such Nonemployee Director (e.g., if a Nonemployee Director is the lead independent director of the Board and the chairperson of the Compensation Committee, he or she will be eligible to receive (i) an Annual Retainer for service as the lead independent director of the Board, (ii) an Annual Retainer for service as a member of the Board, and (iii) an Annual Retainer for service as the chairperson of the Compensation Committee).

(b)Prorated Annual Retainers for Mid-Year Appointees.  Section 4(a) will apply to any Nonemployee Director who is newly appointed as (i) a chairperson, lead independent director or member of the Board or (ii) a chairperson of a Committee, in each case after January 1 of a calendar year (each, a “Mid-Year Appointee”); provided, however, that with respect to any Annual Retainer for such Mid-Year Appointee’s first (partial) calendar year of service in the role applicable to such Annual Retainer, “Cash Dollar Value” and “RSU Dollar Value” will mean, as applicable, (i) the applicable amount set forth in the Table, multiplied by (ii) a fraction, the numerator of which is the number of days in the period beginning on (and including) the effective date of such Mid-Year Appointee’s appointment to the applicable role and ending on (and including) December 31 of such calendar year and the denominator of which is the total number of days during such calendar year.

(c)Dollar Value of Annual Retainers.  The dollar value of each Annual Retainer payable to a Nonemployee Director will be determined in accordance with the following terms.

(i)If a Nonemployee Director makes an election pursuant to Section 4(d) to receive any portion of an Annual Retainer in the form of cash, the dollar value of such portion will be equal to (A) the applicable Cash Dollar Value (as set forth in the Table and adjusted pursuant to Section 4(b), if applicable), multiplied by (B) the percentage elected by such Nonemployee Director (the “Cash Election Percentage”).

(ii)If a Nonemployee Director makes an election pursuant to Section 4(d) to receive any portion of an Annual Retainer in the form of a restricted stock unit (“RSU”) award, the dollar value of such portion will be equal to (A) the applicable RSU Dollar Value (as set forth in the Table and adjusted pursuant to Section 4(b), if applicable), multiplied by (B) the percentage elected by such Nonemployee Director (the “RSU Election Percentage”).

(d)Election for Annual Retainers.  Each Nonemployee Director may make an election to receive any portion of an Annual Retainer in the form of cash or an RSU award.  With respect to any Annual Retainer for a particular calendar year of service, such election (i) must be made on a form provided by the Company, (ii) must be made on or before December 31 of the year immediately prior to such calendar year (or such earlier date as required by the Company); provided, however, that any such election made by a Mid-Year Appointee who will become a new member of the Board may be made before the effective date of his or her appointment to the Board, and (iii) will be irrevocable once made.  If a Nonemployee Director does not make an election or fails to submit an election on a timely basis, such Nonemployee Director will be deemed to have elected to receive his or her Annual Retainers in the form of cash only.

(e)Terms of Annual Retainers in the Form of Cash.

(i)Subject to Section 4(e)(ii), with respect to any Annual Retainer for a particular calendar year of service, the portion (if any) of such Annual Retainer to be paid in the form of cash, as determined in accordance with Section 4(c)(i), will be paid in substantially equal quarterly installments on January 1, April 1, July 1 and October 1 of such calendar year, provided that the Nonemployee Director is in service in the role applicable to such Annual Retainer on the applicable payment date (e.g., if a Nonemployee Director is the chairperson of the Audit Committee on January 1 but terminates his or her service as such chairperson on August 1, then with respect to his or her Annual Retainer for service as such chairperson, he or she will receive the quarterly installments payable on January 1, April 1, and July 1 but not the quarterly installment payable on October 1, regardless of whether he or she is in service as a Nonemployee Director on October 1).

(ii)With respect to any Annual Retainer for a Mid-Year Appointee’s first (partial) calendar year of service in the role applicable to such Annual Retainer, the portion (if any) of such Annual Retainer to be paid in the form of cash will be paid as follows: 

(A)     the first installment will be paid on the effective date of such Mid-Year Appointee’s appointment to the applicable role and the amount of such first installment will be equal to (x) the total amount of the portion of such Annual Retainer to be paid in the form of cash, minus (y) an amount equal to the product of (1) 25% multiplied by (2) the applicable Cash Dollar Value (as set forth in the Table, without any adjustment pursuant to Section 4(b)) multiplied by (3) the Cash Election Percentage multiplied by (4) the number of quarterly payment dates (i.e., April 1, July 1 and October 1) remaining in such calendar year after the effective date of such Mid-Year Appointee’s appointment to the applicable role; and

(B)    any remaining installments will be paid in substantially equal amounts on April 1 (if such effective date occurs prior to April 1), July 1 (if such effective date occurs prior to July 1) and October 1 (if such effective date occurs prior to October 1) of such calendar year, provided that such Mid-Year Appointee is in service in the role applicable to such Annual Retainer on the applicable payment date.

(f)Terms of Annual Retainers in the Form of RSU Awards.  With respect to any Annual Retainer for a particular calendar year of service, the portion (if any) of such Annual Retainer to be paid in the form of an RSU award will be subject to the following terms.

(i)Such award will be granted under the EIP and will be subject to the terms of the EIP, the applicable award agreement and the Policy.

(ii)Such award will be granted on the first trading day in January of such calendar year; provided, however, that with respect to any such award for a Mid-Year Appointee’s first (partial) calendar year of service in the role applicable to such award, such award will be granted on the effective date of such Mid-Year Appointee’s appointment to the applicable role.

(iii)The number of RSUs subject to such award will be equal to (A) the dollar value of such portion, as determined in accordance with Section 4(c)(ii), divided by (B) the average of the daily volume weighted average prices (“VWAP”) of the Company’s common stock for all of the trading days during the 30 calendar day period ending on (and including) the last trading day immediately prior to the grant date of such award, rounded down to the nearest whole share; provided, however, that the number of RSUs subject to such award, together with any RSUs or shares subject to any other Nonemployee Director Awards (as defined in the EIP) granted to the Nonemployee Director (including any Annual Awards granted under Section 5), may not exceed the limit set forth in Section 5.5 of the EIP.

(iv)Such award will vest in substantially equal quarterly installments on the grant date of such award and on April 1, July 1 and October 1 of the calendar year in which such award is granted; provided, however, that:

(A)    with respect to any such award for a Mid-Year Appointee’s first (partial) calendar year of service in the role applicable to such award, such award will vest as follows:

(x)    the first installment will vest on the effective date of such Mid-Year Appointee’s appointment to the applicable role and the number of RSUs in such first installment will be equal to (1) the total number of RSUs with respect to the portion of such Annual Retainer to be paid in the form of an RSU award, minus (2) an amount equal to the product of (I) 25% multiplied by (II) the number of RSUs that would be subject to the full Annual Retainer (i.e., without any adjustment pursuant to Section 4(b)), determined as if the award were granted on the effective date of such Mid-Year Appointee’s appointment to the applicable role, multiplied by (III) the RSU Election Percentage multiplied by (IV) the number of quarterly vesting dates (i.e., April 1, July 1 and October 1) remaining in such calendar year after the effective date of such Mid-Year Appointee’s appointment to the applicable role; and

(y)     any remaining installments will vest in substantially equal amounts on April 1 (if such effective date occurs prior to April 1), July 1 (if such effective date occurs prior to July 1) and October 1 (if such effective date occurs prior to October 1) of such calendar year;

(B)    vesting will be fully accelerated upon a Change in Control (as defined in the EIP), as set forth in Section 13.2 of the EIP; and

(C)    vesting will cease upon the termination of the Nonemployee Director’s service in the role applicable to such Annual Retainer and any RSUs subject to such award that are unvested on the date of such termination will be forfeited by such Nonemployee Director on such date (e.g., if a Nonemployee Director is granted an RSU award with respect to his or her Annual Retainer for service as the chairperson of the Audit Committee, such RSU award will cease vesting upon his or her termination as such chairperson and any RSUs subject to such award that are unvested on the date of such termination will be forfeited by the Nonemployee Director on such date, regardless of whether he or she continues in service as a Nonemployee Director after such date).

(v)Except as provided in Section 4(f)(vi), the issuance of any shares pursuant to such award, to the extent vested, will occur on the date of the Nonemployee Director’s termination of service as a member of the Board, provided that such termination constitutes a “separation from service” within the meaning of Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”), subject to Section 7 and the terms of the award agreement.

(vi)Each RSU subject to such award (whether vested or unvested) will be credited with any cash dividend, stock dividend or other distribution that is paid with respect to a share of the Company’s common stock.  Any such dividend or other distribution will be credited to such RSU on the same date and in the same form as such dividend or other distribution is paid to the Company’s shareholders.  Any such dividend or other distribution that is credited to such RSU will be issued (A) on the date of such crediting if such RSU is vested on such date or (B) on the date such RSU becomes vested if such RSU is unvested on the date of such crediting, in each case in the same form paid to the Company’s shareholders.  For clarity, any such dividend or other distribution that is credited to an unvested RSU will be unvested and will only vest and be issued if the underlying RSU vests. 

5.Annual RSU Awards

Each Nonemployee Director will be eligible to receive an annual RSU award (an “Annual Award”) for each calendar year of service as a member of the Board.  For clarity, an individual will not be eligible to receive an Annual Award unless he or she is a Nonemployee Director on the applicable grant date.  Each Annual Award will be subject to the following terms. 

(a)Each Annual Award will be granted under the EIP and will be subject to the terms of the EIP, the applicable award agreement and the Policy.

(b)Each Annual Award will be granted on the first trading day in January of the applicable calendar year of service; provided, however, that with respect to any Annual Award for a Mid-Year Appointee’s first (partial) calendar year of service as a member of the Board, such Annual Award will be granted on the effective date of such Mid-Year Appointee’s appointment to the Board.

(c)The number of RSUs subject to each Annual Award will be equal to (i) the Annual Award Dollar Value (as defined below), divided by (ii) the average of the daily VWAP of the Company’s common stock for all of the trading days during the 30 calendar day period ending on (and including) the last trading day immediately prior to the grant date of such Annual Award, rounded down to the nearest whole share; provided, however, that the number of RSUs subject to such Annual Award, together with any RSUs or shares subject to any other Nonemployee Director Awards (as defined in the EIP) granted to the Nonemployee Director (including any RSU awards granted under Section 4), may not exceed the limit set forth in Section 5.5 of the EIP.  For purposes of the foregoing, the “Annual Award Dollar Value” will mean $75,000; provided, however, that with respect to any Annual Award for a Mid-Year Appointee’s first (partial) calendar year of service as a member of the Board, the “Annual Award Dollar Value” will mean (A) $75,000, multiplied by (B) a fraction, the numerator of which is the number of days in the period beginning on (and including) the effective date of such Mid-Year Appointee’s appointment to the Board and ending on (and including) December 31 of such calendar year and the denominator of which is the total number of days during such calendar year.

(d)Each Annual Award will vest in substantially equal quarterly installments on the grant date of such Annual Award and on April 1, July 1 and October 1 of the calendar year in which such Annual Award is granted; provided, however, that:

(i)with respect to any Annual Award for a Mid-Year Appointee’s first (partial) calendar year of service as a member of the Board, such Annual Award will vest as follows:

(A)     the first installment will vest on the effective date of such Mid-Year Appointee’s appointment to the Board and the number of RSUs in such first installment will be equal to (x) the total number of RSUs subject to such Annual Award, minus (y) an amount equal to the product of (1) 25% multiplied by (2) the number of RSUs that would result if the Annual Award Dollar Value were $75,000, determined as if the Annual Award were granted on the effective date of such Mid-Year Appointee’s appointment to the Board, multiplied by (3) the number of quarterly vesting dates (i.e., April 1, July 1 and October 1) remaining in such calendar year after the effective date of such Mid-Year Appointee’s appointment to the Board; and

(B)     any remaining installments will vest in substantially equal amounts on April 1 (if such effective date occurs prior to April 1), July 1 (if such effective date occurs prior to July 1) and October 1 (if such effective date occurs prior to October 1) of such calendar year;

(ii)vesting will be fully accelerated upon a Change in Control (as defined in the EIP), as set forth in Section 13.2 of the EIP; and

(iii)vesting will cease upon the termination of the Nonemployee Director’s service as a member of the Board and any RSUs subject to such Annual Award that are unvested on the date of such termination will be forfeited by such Nonemployee Director on such date.

(e)Except as provided in Section 5(f), the issuance of any shares pursuant to each Annual Award, to the extent vested, will occur on the date of the Nonemployee Director’s termination of service as a member of the Board, provided that such termination constitutes a “separation from service” within the meaning of Section 409A of the Code, subject to Section 7 and the terms of the award agreement.

(f)Each RSU subject to each Annual Award (whether vested or unvested) will be credited with any cash dividend, stock dividend or other distribution that is paid with respect to a share of the Company’s common stock.  Any such dividend or other distribution will be credited to such RSU on the same date and in the same form as such dividend or other distribution is paid to the Company’s shareholders.  Any such dividend or other distribution that is credited to such RSU will be issued (i) on the date of such crediting if such RSU is vested on such date or (ii) on the date such RSU becomes vested if such RSU is unvested on the date of such crediting, in each case in the same form paid to the Company’s shareholders.  For clarity, any such dividend or other distribution that is credited to an unvested RSU will be unvested and will only vest and be issued if the underlying RSU vests.

6.Expenses

Subject to Section 7, each Nonemployee Director will be eligible for reimbursement from the Company for all reasonable out-of-pocket expenses incurred in connection with his or her duties as a Nonemployee Director.

Each Nonemployee Director may consult the chairperson of the Board on a case-by-case basis with respect to reimbursement for any expenses related to attending any seminars (including the proposed budget for any such seminar).

		
	7.
	Section 409A

The Company intends that any amounts provided under the Policy be exempt from or comply with the requirements of Section 409A of the Code and the regulations and rulings issued thereunder (collectively, “Section 409A”), and the Policy will be so construed.  Without limiting the generality of the foregoing and notwithstanding any other provision of the Policy to the contrary:

(a)If any amount under the Policy (i) constitutes a “deferral of compensation” within the meaning of Section 409A, (ii) is payable pursuant to an individual’s “separation from service” within the meaning of Section 409A, and (iii) such individual is a “specified employee” within the meaning of Section 409A (determined using the identification methodology selected by the Company from time to time, or if none, the default methodology) as of the date of such individual’s separation from service, then except as otherwise permitted by Section 409A, such amount will be paid to such individual on the date that is six months and one day after such individual’s separation from service or, if earlier, the date of such individual’s death following such separation from service.

(b)Each payment made under the Policy will be treated as a separate payment.

(c)To the extent that any taxable reimbursements are provided to any Nonemployee Director, they will be provided in accordance with Section 409A, including, but not limited to, the following provisions: (i) the amount of any such expenses eligible for reimbursement during such individual’s taxable year may not affect the expenses eligible for reimbursement in any other taxable year; (ii) the reimbursement of an eligible expense must be made no later than the last day of such individual’s taxable year that immediately follows the taxable year in which the expense was incurred; and (iii) the right to any reimbursement may not be subject to liquidation or exchange for another benefit.EXECUTION VERSION 

SETTLEMENT AGREEMENT

This Agreement (this
“Agreement”) is made and entered into as of March 2, 2017,
by and among Quantum Corporation, a Delaware corporation (the “Company”), and the entities and natural persons listed on Exhibit A hereto and their respective Affiliates (as
defined below) (collectively, “VIEX”) (each of the
Company and VIEX, a “Party” to this Agreement,
and collectively, the “Parties”).

WHEREAS, each of the Company
and VIEX has filed proxy materials with the Securities and Exchange Commission
(“SEC”) with respect to the election of directors at
the annual meeting of stockholders of the Company to be held on March 31, 2017
(the “Annual Meeting”);

WHEREAS, VIEX is deemed to
beneficially own shares of the common stock of the Company, $0.01 par value (the
“Common Stock”), totaling, in the aggregate, 29,531,722 shares,
constituting approximately 10.9% of the Common Stock outstanding as of the date
hereof; and

WHEREAS, the Company and VIEX
have determined to come to an agreement with respect to the election of members
of the Company’s board of directors (the “Board”) at the Annual
Meeting and certain other matters, as provided in this Agreement. 

NOW, THEREFORE, in
consideration of the foregoing premises and the mutual covenants and agreements
contained herein, and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the Parties hereto, intending to
be legally bound hereby, agree as follows: 

1. Board Matters; Board Appointments; Annual Meeting. 

(a) The
Company agrees, and the Board and all applicable committees of the Board have
taken all necessary actions, (i) subject to paragraph (l) below, to nominate and
solicit for each of Paul R. Auvil III, Gregg J. Powers, David E. Roberson and
Jon W. Gacek (each, a “Company
Nominee”) for election to the
Board at the Annual Meeting, and (ii) subject to paragraph (e) and paragraph (i)
below, to nominate and solicit for each of Clifford Press (“VIEX Nominee One”), Raghu Rau
(“VIEX Nominee Two”) and John Mutch (“VIEX Nominee Three”, and together with VIEX Nominee One and VIEX
Nominee Two, the “VIEX
Nominees”) for election to the
Board at the Annual Meeting. As of the date of this Agreement, each of VIEX
Nominee Two and VIEX Nominee Three is appointed as an observer to the Board
until the Annual Meeting. VIEX Nominee Two and VIEX Nominee Three will (i)
receive copies of all notices and written information furnished to the full
Board or any committee of the Board, reasonably in advance of each meeting to
the extent practicable and in any event at the same time as members of the Board
or the applicable committee, and (ii) be permitted to be present at all meetings
of the full Board (whether by telephone or in person). Notwithstanding the
foregoing, (A) the Company shall be entitled to withhold any information and
exclude VIEX Nominee Two and VIEX Nominee Three from any meeting, or any portion
thereof, as is reasonably determined by the Company to be necessary to protect
the Company’s attorney-client privilege until VIEX Nominee Two and VIEX Nominee Three are elected to the Board, and (B) each
of VIEX Nominee Two and VIEX Nominee Three shall execute a confidentiality and
indemnification agreement in the form attached as Exhibit B hereto. The Company will use its reasonable best
efforts to minimize the frequency and duration of any exclusions pursuant to
part (A) of the preceding sentence. 

(b) Except
for the Company Nominees and the VIEX Nominees, the Company shall not nominate
any person for election at the Annual Meeting nor shall it permit any other
stockholder to nominate individuals for election as directors at the Annual
Meeting. From the date hereof until the Annual Meeting, the Board and all
applicable committees of the Board shall not increase the size of the Board to
more than nine (9) directors. Effective as of the completion of the Annual
Meeting, (i) the size of the Board shall be reduced to seven (7) directors, and
(ii) Paul R. Auvil III shall be appointed as chairman of the Board. Immediately
after the Annual Meeting, and until earlier of the date of termination of the
Standstill Period and the Termination Date (each as defined below), the size of
the Board shall remain at seven (7) directors.

(c) VIEX
hereby withdraws the notice of stockholder nominations dated February 2, 2017.
Prior to the expiration of the Standstill Period, VIEX hereby agrees not to (i)
bring any nominations or business before the Annual Meeting, directly or
indirectly, or (ii) initiate, encourage or participate in any “withhold” or
similar campaign with respect to the Annual Meeting, directly or indirectly, and
shall not permit any of its Affiliates or Associates (as defined below) to do
any of the items in this Section 1(c). With respect to the Annual Meeting, VIEX
shall not publicly or privately encourage or support any other stockholder to
take any of the actions described in this Section 1(c). 

(d) The
Company agrees that it will recommend, support and solicit proxies for the
election of the VIEX Nominees at the Annual Meeting in the same manner as for
the Company’s other nominees standing for election to the Board at the Annual
Meeting, but in any event with no less effort than the Company has used to
solicit for its own slate of directors in connection with its three previous
annual meetings of stockholders. 

(e) The
Company agrees that if any VIEX Nominee or any Replacement Director (as defined
below) is unable to serve as a director, resigns as a director (other than as
contemplated by paragraph (j) below) or is removed as a director prior to the
Next Annual Meeting (as defined below), VIEX shall have the ability to identify
a substitute person(s) who is not a director of the Company as of the date of
this Agreement for approval by the Corporate Governance and Nominating Committee
of the Board (the “Governance
Committee”) within three (3) business
days of identification, which approval shall be withheld only upon failure by
such individual of a customary background check (any such replacement nominee
recommended in accordance with the terms of this Section 1(e) shall be referred
to as the “Replacement Director”), subject to the
fiduciary duties of the Board set forth in the third succeeding sentence of this
paragraph (e). Any Replacement Director shall (i) not be an Affiliate or
Associate of VIEX and (ii) qualify as “independent” pursuant to the listing
standards of the New York Stock Exchange, Inc. (the “NYSE”). In the event the Governance Committee rejects a substitute person
recommended by VIEX, VIEX will have the right to recommend additional substitute
person(s), who meet the requirements of (i)
and (ii) in the preceding sentence. The Board shall vote on the appointment of
such Replacement Director to the Board no later than three (3) business days
after the Governance Committee recommendation of such Replacement Director and
shall not reject the Replacement Director unless required to do so in the
exercise of its fiduciary duties; provided, however, that if the Board does not elect such Replacement Director to the
Board, the Parties shall continue to follow the procedures of this Section 1(e)
until a Replacement Director is elected to the Board.

2 

(f) At the
Annual Meeting and, if the Standstill Period remains in effect, the Next Annual
Meeting, VIEX agrees to appear in person or by proxy and vote all shares of
Common Stock beneficially owned by it in favor of the election of each of the
Company’s nominees for election to the Board (ratably with respect to all
nominees), provided, however, that VIEX shall only be required to vote ratably with respect to all
nominees at such annual meeting to the extent that the Company also votes
ratably with respect to all nominees at such annual meeting.

(g) VIEX
agrees that it will cause its Affiliates and Associates to comply with the terms
of this Agreement. As used in this Agreement, the terms “Affiliate” and
“Associate” shall have the respective meanings set forth in Rule 12b-2
promulgated by the SEC under the Securities Exchange Act of 1934, as amended, or
the rules or regulations promulgated thereunder (the “Exchange Act”) and shall include all persons or entities that
at any time during the term of this Agreement become Affiliates or Associates of
any person or entity referred to in this Agreement. 

(h) The
Company shall (i) hold the Annual Meeting on March 31, 2017, (ii) hold the next
annual meeting of stockholders of the Company (the “Next Annual Meeting”) (A) no earlier than August 1, 2017 and (B) no
later than August 31, 2017, and (iii) publicly announce the date of the Next
Annual Meeting no later than June 1, 2017. 

(i) The
right of VIEX (i) pursuant to Section 1(e) to participate in the recommendation
of a Replacement Director, and (ii) pursuant to Section 1(j) to participate in
the selection of New Directors (as defined below) shall automatically terminate
on the date that VIEX sells or transfers beneficial ownership of shares of
Common Stock such that VIEX’s aggregate beneficial ownership of Common Stock
decreases to less than one (1) percent (%) of the Company’s then outstanding
Common Stock (the “Termination
Date”). To the extent VIEX has
publicly disclosed aggregate beneficial ownership of Common Stock of less than
five (5) percent (%) of the Company’s then outstanding Common Stock, VIEX shall,
upon written request relating to the exercise of its rights under Sections 1(e)
or 1(j), provide confirmation to the Company that VIEX’s then current beneficial
ownership of Common Stock is equal to or greater than one (1) percent (%) of the
Company’s then outstanding Common Stock. 

3 

(j) Promptly following the execution of this Agreement, a search committee of
the Board composed of Messrs. Powers and Press (the “Search Committee”) will engage Korn/Ferry International (the
“Search Firm”) to recruit three (3) new directors (each, a
“New Director”) who (A) do not
have, and have not had in the past three (3) years, a professional or other
material relationship with the Company, VIEX or any of their respective
Affiliates and their Affiliates’ respective directors, officers or
managing members, (B) qualify as an “independent director” under applicable rules of the SEC and the
applicable rules of the NYSE, and (C) have data storage expertise, with at least
one New Director having expertise in the cloud/software space, at least one New
Director who is qualified to serve as chair of the Audit Committee of the Board
(the “Audit
Committee”) in accordance with
applicable law, and at least one New Director who is qualified to serve on the
Leadership and Compensation Committee of the Board (the “LCC”) in accordance with applicable law. The Search Committee shall run the
search process and interview candidates and will consult with Paul R. Auvil III
with respect to each candidate for New Director. The Search Committee shall
notify VIEX of the proposed New Directors approved by the Search Committee and
Mr. Auvil, and VIEX will be entitled to have, together with the Search
Committee, a joint or separate meeting with each proposed New Director at the
Company’s headquarters or another mutually agreed location or by conference
call. VIEX shall have the right to approve or reject each proposed New Director,
provided that VIEX shall notify the Search Committee promptly following the
meeting whether it approves or rejects the candidate for New Director and shall
not unreasonably withhold its approval of any such candidate. If VIEX withholds
its consent with respect to any candidate, the candidate will not be presented
to the Board and the foregoing procedure shall be repeated with respect to one
or more other candidates until such time as VIEX shall have so approved three
(3) New Directors. Upon approval by VIEX of each candidate to serve as a New
Director, all members of the Board shall be afforded the opportunity to meet
with and interview such candidate. The candidates to serve as New Directors
shall thereafter be presented to the Board for review and approval and
appointment to the Board. Regardless of whether the Termination Date has
occurred, the Search Committee shall complete the foregoing process with respect
to no less than two (2) New Directors no later than sixty (60) days after the
date of this Agreement, and the third (3rd) New Director no later
than ninety (90) days after the date of this Agreement. As of such time as the
first New Director is appointed to and seated on the Board, John Mutch shall
simultaneously resign from the Board and all committees of the Board. At such
time as the second New Director is appointed and seated on the Board, Jon W.
Gacek, or any substitute person appointed pursuant to Section 1(l), shall
simultaneously resign from the Board and all committees of the Board. At such
time as the third New Director is appointed and seated on the Board, David E.
Roberson, or any substitute person appointed pursuant to Section 1(l), shall
simultaneously resign from the Board and all committees of the Board. In
furtherance of the foregoing, concurrently with the execution of this Agreement,
each of Messrs. Mutch, Roberson and Gacek (or any substitute person identified
pursuant to Section 1(l) (collectively, the “Resigning Directors”) shall execute an irrevocable letter of
resignation in the form set forth in Exhibit F tendering
his resignation effective upon the selection and the appointment of, in the case
of John Mutch, the first New Director, in the case of Jon W. Gacek, or any
substitute person appointed pursuant to Section 1(l), the second New Director
and, in the case of David E. Roberson, or any substitute person appointed
pursuant to Section 1(l), the third New Director. The Company and the Board will
under no circumstances reject, waive, delay or otherwise prevent the effect and
implementation of the irrevocable resignation letter as and when intended. Prior
to the execution of this Agreement, Jon W. Gacek has executed a written waiver
of any claim or potential claim arising from, or that may be deemed to arise as
a result of, Mr. Gacek’s resignation from the Board constituting an event
described in clause 4(d)(y)(i) of the definition of “Involuntary Termination”
set forth in the Quantum Corporation Amended and Restated Change of Control
Agreement dated December 3, 2015 (the “CoC Agreement”). For the avoidance of doubt, the foregoing waiver
does not constitute a waiver of any other claim or right of Mr. Gacek that may
arise following the occurrence of the Change of Control (as defined in the CoC
Agreement) that will result from the transactions contemplated by this
Agreement. The Board as reconstituted in accordance with this paragraph (j) is
referred to herein as the “Reconstituted Board.”

4 

(k) Unless
(i) (A) the Standstill Period has terminated and (B) VIEX is soliciting proxies
with respect to the election of directors in opposition to the Company at the
Next Annual Meeting or taking any action to support a solicitation of proxies
with respect to the election of directors in opposition to the Company at the
Next Annual Meeting or (ii) the Termination Date has occurred, the Company will
recommend, support and solicit proxies for the election of the Reconstituted
Board at the Next Annual Meeting. 

(l) The
parties agree that if, at any time prior to the appointment of the first New
Director, any Company Nominee is unable or unwilling to serve as a director,
resigns as a director or is removed as a director, the other Company Nominees
shall be entitled to name a substitute person to replace the Company Nominee,
provided, that, such substitute person must have no
material conflict with the Company or its businesses and, other than in the case
of the Chief Executive Officer of the Company, be “independent” pursuant to the
NYSE Listing Standards, provided, further, that any such substitute person chosen pursuant to this Section 1(l) to
replace Messrs. Roberson or Gacek shall execute an irrevocable letter of
resignation in the form set forth in Exhibit F. 

(m) The
Company and VIEX agree that, from and after the Annual Meeting, the Board shall
take such action as is necessary such that (i) Messrs. Press, Auvil and Powers
are members of the Governance Committee, with Mr. Powers serving as its chair,
(ii) Messrs. Auvil, Rau and Roberson are members of the Audit Committee, with
Mr. Roberson serving as its chair, and (iii) Messrs. Roberson, Rau and Auvil are
members of the LCC, with Mr. Roberson serving as its chair; provided that, with respect to such committee appointments, such VIEX Nominee is
and continues to remain eligible to serve as a member of such committees
pursuant to applicable law and the rules of the NYSE, if any, that are
applicable to the composition of such committees. Upon the resignation of Mr.
Roberson, the Board shall appoint a qualified New Director to fill the vacancies
on the Audit Committee and the LCC, and (iv) no amendments shall be made to the
Governance Committee charter.

(n) The
Company agrees that the VIEX Nominees and the New Directors shall receive (i)
the same benefits of director and officer insurance, and any indemnity and
exculpation arrangements available generally to the directors on the Board, (ii)
the same compensation for their service as a director as the compensation
received by other non-management directors on the Board, and (iii) such other
benefits on the same basis as all other non-management directors on the Board,
including having the Company (or its legal counsel) prepare and file with the
SEC, at the Company’s expense, any Forms 3, 4 and 5 under Section 16 of the
Exchange Act that are required to be filed by each director of the
Company.

(o) All
obligations of the Company under this Section 1 that have not theretofore
terminated shall terminate upon the completion of the Next Annual Meeting.

5 

2. Standstill.

(a) VIEX
agrees that, during the Standstill Period, neither it nor any of its Affiliates
or Associates under its control or direction will, and it will cause each of
such Affiliates and Associates not to, directly or indirectly, in any
manner:

(i) engage
in any solicitation of proxies or consents or become a “participant” in a
“solicitation” as such terms are defined in Regulation 14A under the Exchange
Act of proxies or consents, in each case, with respect to securities of the
Company;

(ii) form,
join or in any way participate in any “group” (within the meaning of Section
13(d)(3) of the Exchange Act) with respect to the Common Stock, other than a
“group” that includes all or some of the persons or entities identified on
Exhibit A, but does not include any other persons or
entities not identified on Exhibit A as of the
date hereof;

(iii) deposit any Common Stock in any voting trust or subject any Common Stock
to any arrangement or agreement with respect to the voting of any Common Stock,
other than any such voting trust, arrangement or agreement solely among the
members of VIEX and otherwise in accordance with this Agreement;

(iv) seek,
alone or in concert with others, representation on the Board, or take any other
action with respect to the election or removal of any director of the Company or
the calling of any meeting or referendum of stockholders or the taking of any
action by written consent;

(v) (A)
make any proposal for consideration by stockholders at any annual or special
meeting of stockholders of the Company, or (B) make any offer or proposal (with
or without conditions and whether public or private), with respect to any
merger, acquisition, recapitalization, restructuring, disposition or other
business combination involving the Company or any of its Affiliates; 

(vi) commence or threaten any action or proceeding (other than any action or
proceeding to enforce the terms of this Agreement) against the Company or any of
its Affiliates or make any demand for access to books and records of the Company
or any of its Affiliates;

(vii) make
any request or submit any proposal seeking to amend or waive any of the terms of
this Agreement; or

(viii) advise, encourage, support or influence, or seek to advise, encourage,
support or influence, any person or entity with respect to the taking of any
action or the making of any statement by any person or entity of the types
enumerated in clauses (i) through (vii). 

6 

(b) For
the purposes of this Agreement, “Standstill Period” shall mean the period
commencing upon the execution and delivery of this Agreement and ending on the
earliest of (i) the completion of the Next Annual Meeting, (ii) in the event
that three (3) New Directors are not appointed to the Board, or in the event any
of Messrs. Mutch, Roberson and Gacek has not resigned from the Board, within
ninety (90) days from the date of this Agreement or, on the ninety-first
(91st) day after the date of this Agreement, unless, with respect to
the appointment of the New Directors or in the event any of Messrs. Mutch,
Roberson and Gacek has not resigned from the Board, the failure to appoint such
New Directors or the failure of Messrs. Mutch, Roberson and Gacek to resign from
the Board is the result of VIEX unreasonably withholding its approval with
respect to one or more proposed New Directors as determined by a judicial
finding (which has not been reversed or overturned) by a court specified in
Section 13 in which the parties to this Agreement participated, and (iii) a
breach of this Agreement by the Company. The Company agrees that it will accept
stockholder nominations for director and proposals of business for the Next
Annual Meeting until June 30, 2017.

(c) Notwithstanding the foregoing, nothing in this Agreement shall prohibit
or restrict VIEX from (i) communicating privately with the Board or any of the
Company’s officers regarding any matter in a manner that does not otherwise
violate this Section 2, so long as such communications are not intended to, and
would not reasonably be expected to, require any public disclosure of such
communications, (ii) communicating privately with stockholders of the Company
and others in a manner that does not otherwise violate this Section 2, so long
as such communications are not intended to, and would not reasonably be expected
to, require any public disclosure of such communications, (iii) taking any
action necessary to comply with any law, rule or regulation or any action
required by any governmental or regulatory authority or stock exchange that has,
or may have, jurisdiction over VIEX or any of its respective Affiliates or
Associates in a manner that does not otherwise violate this Section 2, including
responding to the questions and comments of the SEC in connection with any proxy
statement, (iv) communicating with its investors in quarterly or annual letters
provided such communications are subject to standard confidentiality
obligations, (v) trading freely in the securities and derivatives of the Company
during the Standstill Period, and/or (vi) freely participating in the process
established by Section 1(j). 

3. Representations and Warranties of the Company. The Company represents and warrants to VIEX that
(a) the Company has the corporate power and authority to execute this Agreement
and to bind it thereto, (b) this Agreement has been duly and validly authorized,
executed and delivered by the Company, constitutes a valid and binding
obligation and agreement of the Company, and is enforceable against the Company
in accordance with its terms, except as enforcement thereof may be limited by
applicable bankruptcy, insolvency, reorganization, moratorium, fraudulent
conveyance or similar laws generally affecting the rights of creditors and
subject to general equity principles, and (c) the execution, delivery and
performance of this Agreement by the Company does not and will not (i) violate
or conflict with any law, rule, regulation, order, judgment or decree applicable
to the Company, or (ii) subject to the rights of any employee under any
employment or change in control agreement with the Company, result in any breach
or violation of or constitute a default (or an event which with notice or lapse
of time or both could constitute such a breach, violation or default) under or
pursuant to, or give any right of termination or cancellation of, any
organizational document, agreement, contract, commitment, understanding, or
arrangement to which the Company is a party
or by which it is bound. 

7 

4. Representations and Warranties of VIEX. VIEX
represents and warrants to the Company that (a) the authorized signatory of VIEX
set forth on the signature page hereto has the power and authority to execute
this Agreement and any other documents or agreements to be entered into in
connection with this Agreement and to bind it thereto, (b) this Agreement has
been duly authorized, executed and delivered by VIEX, and is a valid and binding
obligation of VIEX, enforceable against VIEX in accordance with its terms,
except as enforcement thereof may be limited by applicable bankruptcy,
insolvency, reorganization, moratorium, fraudulent conveyance or similar laws
generally affecting the rights of creditors and subject to general equity
principles, (c) the execution of this Agreement, the consummation of any of the
transactions contemplated hereby, and the fulfillment of the terms hereof, in
each case in accordance with the terms hereof, will not conflict with, or result
in a breach or violation of the organizational documents of VIEX as currently in
effect, (d) the execution, delivery and performance of this Agreement by VIEX
does not and will not violate or conflict with (i) any law, rule, regulation,
order, judgment or decree applicable to VIEX, or (ii) result in any breach or
violation of or constitute a default (or an event which with notice or lapse of
time or both could constitute such a breach, violation or default) under or
pursuant to, or give any right of termination or cancellation of, any
organizational document, agreement, contract, commitment, understanding or
arrangement to which such member is a party or by which it is bound, (e) as of
the date of this Agreement, (i) VIEX is deemed to beneficially own in the
aggregate 29,531,722 shares of Common Stock, and (ii) VIEX does not currently
have, and does not currently have any right to acquire, any interest in any
other securities of the Company (or any rights, options or other securities
convertible into or exercisable or exchangeable (whether or not convertible,
exercisable or exchangeable immediately or only after the passage of time or the
occurrence of a specified event) for such securities or any obligations measured
by the price or value of any securities of the Company or any of its Affiliates,
including any swaps or other derivative arrangements designed to produce
economic benefits and risks that correspond to the ownership of Common Stock,
whether or not any of the foregoing would give rise to beneficial ownership (as
determined under Rule 13d-3 promulgated under the Exchange Act), and whether or
not to be settled by delivery of Common Stock, payment of cash or by other
consideration, and without regard to any short position under any such contract
or arrangement), and (f) VIEX has not, directly or indirectly, compensated or
agreed to, and will not, compensate any VIEX Nominee for his or her service as a
director to the Board of the Company with any cash, securities (including any
rights or options convertible into or exercisable for or exchangeable into
securities or any profit sharing agreement or arrangement), or other form of
compensation directly or indirectly related to the Company or its securities.

5. Expenses. Each of the
Company and VIEX shall be responsible for its own fees and expenses incurred in
connection with the negotiation, execution, and effectuation of this Agreement
and the transactions contemplated hereby, including, but not limited to legal
expenses; provided, however, that the Company
shall reimburse VIEX, within five (5) business days following the execution and
delivery of this Agreement, an amount equal to $350,000, which may be used by
VIEX for its out-of-pocket fees and expenses (including legal expenses) incurred
in connection with the nomination of candidates for director by VIEX, the
preparation of proxy materials and other communications, the negotiation and
execution of this Agreement and all other
activities related hereto or thereto.

8 

6. Public Announcements. Promptly following the execution of this Agreement, the Company and VIEX
shall issue a mutually agreed press release (the “Press Release”), announcing certain terms of this Agreement, in
the form attached hereto as Exhibit C. During the
Standstill Period, and except as may be required under applicable securities
laws, neither the Company nor VIEX shall issue any press release or make any
public announcement regarding this Agreement or take any action that would
require public disclosure thereof without the prior written consent of the other
Party. 

7. SEC Filings.

(a) Promptly following the execution of this Agreement, the Company shall
file a Current Report on Form 8-K with the SEC reporting the entry into this
Agreement and appending or incorporating by reference this Agreement as an
exhibit thereto, in the form attached hereto as Exhibit D. 

(b) Promptly following the execution of this Agreement, VIEX shall file an
amendment to its Schedule 13D with respect to the Company that has been filed
with the SEC, reporting the entry into this Agreement, amending applicable items
to conform to their obligations hereunder and appending or incorporating by
reference this Agreement as an exhibit thereto, in the form attached hereto as
Exhibit E. 

8. Specific Performance. Each of VIEX, on the one
hand, and the Company, on the other hand, acknowledges and agrees that
irreparable injury to the other Party hereto could occur in the event any of the
provisions of this Agreement were not performed in accordance with their
specific terms or were otherwise breached and that such injury may not be
adequately compensable by the remedies available at law (including the payment
of money damages). It is accordingly agreed that VIEX, on the one hand, and the
Company, on the other hand, shall each be entitled to seek specific enforcement
of, and injunctive relief to prevent any violation of, the terms hereof without
the necessity of posting bond or other security. This Section 8 is not the
exclusive remedy for any violation of this Agreement. 

9. Mutual Non-Disparagement. Subject to applicable law, each of the Parties covenants and agrees that,
during the Standstill Period, or if earlier, until such time as the other Party
or any of its agents, subsidiaries, affiliates, successors, assigns, officers,
employees or directors shall have breached this Section 9, neither it nor any of
its respective agents, subsidiaries, affiliates, successors, assigns, officers,
employees or directors shall disparage, defame or slander the other Party or
such other Party’s subsidiaries, affiliates, successors, assigns, officers
(including any current officer of a Party or a Party’s subsidiaries who no
longer serves in such capacity following the execution of this Agreement),
directors (including any current director of a Party or a Parties’ subsidiaries
who no longer serves in such capacity at any time following the execution of
this Agreement), or employees. 

10. Non-Employee Director Equity Arrangements. The Company hereby agrees that, promptly
following the date of this Agreement, the LCC and the Board will take the
actions specified on Exhibit G.

9 

11. Severability. If any term, provision, covenant or restriction of
this Agreement is held by a court of competent jurisdiction to be invalid, void
or unenforceable, the remainder of the terms, provisions, covenants and
restrictions of this Agreement shall remain in full force and effect and shall
in no way be affected, impaired or invalidated. It is hereby stipulated and
declared to be the intention of the Parties that the Parties would have executed
the remaining terms, provisions, covenants and restrictions without including
any of such which may be hereafter declared invalid, void or unenforceable. In
addition, the Parties agree to use their best efforts to agree upon and
substitute a valid and enforceable term, provision, covenant or restriction for
any of such that is held invalid, void or enforceable by a court of competent
jurisdiction. 

12. Notices. Any notices, consents, determinations, waivers or
other communications required or permitted to be given under the terms of this
Agreement must be in writing and will be deemed to have been delivered: (i) upon
receipt, when delivered personally; (ii) upon receipt, when sent by e-mail to
the e-mail address for a Party set forth below; and (iii) one (1) business day
after deposit with a nationally recognized overnight delivery service, in each
case properly addressed to the Party to receive the same. The addresses for such
communications shall be: 

(a) 

If to the Company or the
Board: 

Quantum Corporation

224 Airport Parkway, Suite
300
San Jose, California 95110
Attention: Shawn Hall
E-mail:
Shawn.Hall@quantum.com

with a copy (which shall
not constitute notice) to:

Fried, Frank, Harris,
Shriver & Jacobson LLP

One New York
Plaza
New York, New York
10004
Attention: Warren S. de Wied, Esq. 
E-mail: warren.dewied@friedfrank.com

(b) 

If to VIEX or any member
thereof:

VIEX Capital Advisors,
LLC
825 Third Avenue, 33rd Floor
New York, New York 10022
Attention:
Eric Singer
E-mail: singer@viexcapital.com

10 

with a copy (which shall not constitute notice) to:

Kleinberg, Kaplan,
Wolff & Cohen, P.C.
551 Fifth Avenue, New York, New York 10176
New
York, New York 10176
Attention: Christopher P. Davis, Esq. 

13.
Applicable Law. This Agreement shall be
governed by and construed and enforced in accordance with the laws of the State
of Delaware without reference to the conflict of laws principles thereof. Each
of the Parties hereto irrevocably agrees that any legal action or proceeding
with respect to this Agreement and the rights and obligations arising hereunder,
or for recognition and enforcement of any judgment in respect of this Agreement
and the rights and obligations arising hereunder brought by the other Party
hereto or its successors or assigns, shall be brought and determined exclusively
in the Delaware Court of Chancery and any state appellate court therefrom within
the State of Delaware (or, if the Delaware Court of Chancery declines to accept
jurisdiction over a particular matter, any state or federal court within the
State of Delaware). Each of the Parties hereto hereby irrevocably submits, with
regard to any such action or proceeding for itself and in respect of its
property, generally and unconditionally, to the personal jurisdiction of the
aforesaid courts and agrees that it will not bring any action relating to this
Agreement in any court other than the aforesaid courts. Each of the Parties
hereto hereby irrevocably waives, and agrees not to assert in any action or
proceeding with respect to this Agreement, (i) any claim that it is not
personally subject to the jurisdiction of the above-named courts for any reason,
(ii) any claim that it or its property is exempt or immune from jurisdiction of
any such court or from any legal process commenced in such courts (whether
through service of notice, attachment prior to judgment, attachment in aid of
execution of judgment, execution of judgment or otherwise) and (iii) to the
fullest extent permitted by applicable legal requirements, any claim that (A)
the suit, action or proceeding in such court is brought in an inconvenient
forum, (B) the venue of such suit, action or proceeding is improper or (C) this
Agreement, or the subject matter hereof, may not be enforced in or by such
courts. Each of the Parties irrevocably agrees to expedited adjudication, by the
courts specified in this Section 13, of any dispute regarding the interpretation
or enforcement of this Agreement. 

14. Waiver of Jury Trial. EACH PARTY ACKNOWLEDGES AND
AGREES THAT ANY CONTROVERSY WHICH MAY ARISE UNDER THIS AGREEMENT IS LIKELY TO
INVOLVE COMPLICATED AND DIFFICULT ISSUES AND, THEREFORE, EACH SUCH PARTY
IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY
IN RESPECT OF ANY LEGAL ACTION ARISING OUT OF OR RELATING TO THIS AGREEMENT OR
THE TRANSACTIONS CONTEMPLATED BY THIS
AGREEMENT. EACH PARTY TO THIS AGREEMENT CERTIFIES AND ACKNOWLEDGES THAT (A) NO
REPRESENTATIVE OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT
SUCH OTHER PARTY WOULD NOT SEEK TO ENFORCE THE FOREGOING WAIVER IN THE EVENT OF
A LEGAL ACTION, (B) SUCH PARTY HAS CONSIDERED THE IMPLICATIONS OF THIS WAIVER,
(C) SUCH PARTY MAKES THIS WAIVER VOLUNTARILY, AND (D) SUCH PARTY HAS BEEN
INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS
AND CERTIFICATIONS IN THIS SECTION 14.

11 

15. Counterparts. This
Agreement may be executed in two or more counterparts, each of which shall be
considered one and the same agreement and shall become effective when
counterparts have been signed by each of the Parties and delivered to the other
Party (including by means of electronic delivery or facsimile). 

16. Entire Agreement; Amendment and Waiver; Successors and Assigns;
Third Party Beneficiaries. This Agreement constitutes
the entire understanding of the Parties hereto with respect to its subject
matter. There are no restrictions, agreements, promises, representations,
warranties, covenants or undertakings between the Parties other than as set
forth in the preceding sentence. No modifications of this Agreement can be made
except in writing signed by an authorized representative of each of the Company
and VIEX, except that the signature of an authorized representative of the
Company will not be required to permit an Affiliate of VIEX to agree to be
listed on Exhibit
A and be bound by the terms
and conditions of this Agreement. No failure on the part of any party to
exercise, and no delay in exercising, any right, power or remedy hereunder shall
operate as a waiver thereof, nor shall any single or partial exercise of such
right, power or remedy by such party preclude any other or further exercise
thereof or the exercise of any other right, power or remedy. All remedies
hereunder are cumulative and are not exclusive of any other remedies provided by
law. The terms and conditions of this Agreement shall be binding upon, inure to
the benefit of, and be enforceable by the Parties hereto and their respective
successors, heirs, executors, legal representatives, and permitted assigns. No
Party shall assign this Agreement or any rights or obligations hereunder
without, with respect to any member of VIEX, the prior written consent of the
Company, and with respect to the Company, the prior written consent of VIEX.
This Agreement is solely for the benefit of the Parties hereto and is not
enforceable by any other persons or entities. 

17. Receipt of Adequate Information; No Reliance; Representation by
Counsel. Each Party
acknowledges that it has received adequate information to enter into this
Agreement, that it has had adequate opportunity to make whatever investigation
or inquiry it may deem necessary or desirable in connection with the subject
matter of this Agreement prior to the execution hereof, and that it has not
relied on any promise, representation or warranty, express or implied not
contained in this Agreement. Each of the Parties hereto acknowledges that it has
been represented by counsel of its choice throughout all negotiations that have
preceded the execution of this Agreement, and that it has executed the same with
the advice of said independent counsel. Each Party cooperated and participated
in the drafting and preparation of this Agreement and the documents referred to
herein, and any and all drafts relating thereto exchanged among the parties
shall be deemed the work product of all of the Parties and may not be construed
against any Party by reason of its drafting or preparation. Accordingly, any
rule of law or any legal decision that would require interpretation of any
ambiguities in this Agreement against any Party that drafted or prepared it is
of no application and is hereby expressly waived by each of the parties hereto,
and any controversy over interpretations of this Agreement shall be decided
without regards to events of drafting or preparation. Further, any rule of law
or any legal decision that would provide any Party with a defense to the
enforcement of the terms of this Agreement against such Party shall have no
application and is expressly waived. The provisions of this Agreement shall be
interpreted in a reasonable manner to effect the intent of the Parties.

12 

18. Construction. When a
reference is made in this Agreement to a Section, such reference shall be to a
Section of this Agreement, unless otherwise indicated. The headings contained in
this Agreement are for reference purposes only and shall not affect in any way
the meaning or interpretation of this Agreement. Whenever the words “include,”
“includes” and “including” are used in this Agreement, they shall be deemed to
be followed by the words “without limitation.” The words “hereof, “herein” and
“hereunder” and words of similar import when used in this Agreement shall refer
to this Agreement as a whole and not to any particular provision of this
Agreement. The word “will” shall be construed to have the same meaning as the
word “shall.” The words “dates hereof” will refer to the date of this Agreement.
The word “or” is not exclusive. The definitions contained in this Agreement are
applicable to the singular as well as the plural forms of such terms. Any
agreement, instrument, law, rule or statute defined or referred to herein means,
unless otherwise indicated, such agreement, instrument, law, rule or statute as
from time to time amended, modified or supplemented.

[Remainder of Page Intentionally Left
Blank] 

13 

IN WITNESS WHEREOF, the
Parties have caused this Agreement to be duly executed and delivered as of the
day and year first written above. 

	Quantum
      Corporation
	 
	By:     	/s/ Jon W. Gacek
	 	Name: Jon W.
      Gacek
		Title: President
      and CEO

	VIEX
      Opportunities Fund, LP - Series One
	  	  
	By:     	VIEX GP, LLC
		General Partner
	 	
	By:	/s/ Eric Singer
		Name: Eric Singer
		Title: Managing Member
	 	
	VIEX
      Opportunities Fund, LP - Series Two
	 	
	By:	VIEX GP, LLC
		General Partner
	 	
	By:	/s/ Eric Singer
		Name: Eric Singer
		Title: Managing Member
	 	
	VIEX GP,
      LLC
	 	
	By:	/s/ Eric Singer
		Name: Eric Singer
		Title: Managing Member
	 	
	VIEX Special
      Opportunities Fund III, LP
	 	
	By:	VIEX Special Opportunities GP III,
  LLC
		General Partner
	 	
	By:	/s/ Eric Singer
		Name: Eric Singer
		Title: Managing Member
	 	
	VIEX Special
      Opportunities GP III, LLC
	 	
	By:	/s/ Eric Singer
		Name: Eric Singer
		Title: Managing
Member

	VIEX Capital Advisors, LLC
	 	 
	By:     	/s/ Eric Singer
		Name: Eric Singer
		Title: Managing
      Member
		 
	/s/ Eric Singer
	Eric
Singer

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