Document:

Design & Manufacturing Services Agrmnt - btwn Inventec Enterprise System Corp.

 Exhibit 10.42 
 Design & Manufacturing Services Agreement 
 DESIGN & MANUFACTURING SERVICES AGREEMENT 
 This Design & Manufacturing Services Agreement (“Agreement”) is entered into as of this 15 day of February, 2008 (“Effective
Date”) between Inventec Enterprise System Corporation (“Vendor”), a Taiwan corporation having its principal place of business at No 3, Gongye 1st Road, Taoyuan County 324, Pingjhen City, , Taiwan, R.O.C., and Blue Coat Systems, Inc.,
a Delaware corporation having its principal place of business at 420 North Mary Avenue, Sunnyvale, CA 94085 (“Blue Coat”). 
 RECITALS 
 WHEREAS, Blue Coat desires that Vendor perform certain design and manufacturing services, including purchasing,
assembly and manufacture, testing and delivery of the products defined in Product Design Document(s); 
 WHEREAS, the parties desire to
define the general terms and conditions governing Vendor’s manufacture and delivery of such products, all as further set forth in this Agreement; and 
 WHEREAS, Blue Coat intends to work with Vendor to design, manufacture and fulfill products under the “Ruby” project. 
 NOW THEREFORE, in consideration of the mutual covenants, promises and undertakings set forth herein, and for other good and valuable consideration, Blue Coat and the Vendor agree as follows: 
 1. DEFINITIONS 
 1.1 “Affiliate”
shall mean (a) any company owned or controlled to the extent of at least fifty percent (50%) of its issued and voting capital by a party to this Agreement and any other company so owned or controlled (directly or indirectly) by any
such company or the owner of any such company, or (b) any partnership, joint venture or other entity directly or indirectly controlled by, controlling, or under common control of, to the extent of fifty percent (50%) or more of voting
power (or otherwise having power to control its general activities), a party to this Agreement. 
 1.2 “Blue Coat Consigned
Items” shall mean, collectively, the Blue Coat Equipment and Blue Coat Material. 
 1.3 “Blue Coat Equipment” shall
mean the test equipment, fixtures, ovens, appurtenances, test hardware and software, and any other items provided or to be provided by Blue Coat to Vendor, as listed in the applicable Product Information Document. 
 1.4 “Blue Coat Material” shall mean any Components or materials that are used to manufacture a Product that are provided by Blue Coat to
Vendor irrespective of any payment by Vendor for such Components or materials. 
 1.5 “Blue Coat Requirements Document”
shall mean Blue Coat’s requirements document associated with a Product as amended in writing pursuant to the terms of this Agreement. 
 1.6 “Components” shall mean the component parts that make up a finished Product. 
 1.7 “Component
Cost” shall mean the cost paid by Vendor for a Component. 
  

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 Design & Manufacturing Services Agreement 
  

 1.8 “Component Lead Time” shall mean the minimum amount of time necessary to
purchase a Component in order to meet the current Forecast. Product Lead Times may be specified in a Product Information Document. 
 1.9
“Customer” shall mean an end user of a Product or a channel partner or service provider of Blue Coat. 
 1.10
“Design Services” shall mean printed circuit board design, printed circuit board assembly design, mechanical design, firmware design, electrical design, system or sub-system design, component engineering or other design services as
specified in a Statement of Work. 
 1.11 “DVT Prototype” shall mean the design validation testing prototype and associated
test completion documents to be completed and delivered to Blue Coat by Vendor after Blue Coat’s acceptance of the EVT Prototype. 
 1.12 “EVT Prototype” shall mean the engineering verification testing prototype and associated test completion documents to be completed and delivered to Blue Coat by Vendor after Blue Coat’s acceptance of the Product
Specifications. 
 1.13 “Excess Components” shall mean a Unique and Special Component on hand at Vendor’s site that is
in excess of the amount needed for the current Forecast; provided, however, that such Component was purchased by Vendor in order to meet a previous Forecast. A Component shall not be an “Excess Component” if it was purchased outside of the
Component Lead Time necessary to meet the Forecast in effect at the time of purchase. 
 1.14 “Final Deliverable” shall mean
the Deliverable that is delivered to Blue Coat by Vendor after Blue Coat’s acceptance of the PVT Prototype and completion of first article inspections of a Product by Blue Coat . The Final Deliverable shall be the Product to be manufactured
under the Manufacturing Services Agreement. 
 1.15 “Forecast” shall have the definition set forth in
Section 7.4. 
 1.16 “Long Lead Time Component” shall mean a Component that has a lead time greater than the
associated Product Lead Time. 
 1.17 “Min/Max Components” shall mean the Components necessary to build the minimum and
maximum levels of Product inventory required by Blue Coat, as specified in a Product Information Document. 
 1.18 “MOQ
Components” shall mean the Components purchased by Vendor pursuant to minimum order requirements from Supplier as approved by Vendor in writing and specified in a Product Information Document. 
 1.19 “NCNR Components” shall mean non-cancelable and non-returnable Components purchased by Vendor as agreed to in writing by Blue Coat
and specified in a Product Information Document. 
 1.20 “Obsolete Component” shall mean a Unique and Special
Component that will no longer be utilized in the manufacture of a Product. A Component shall not be an “Obsolete Component” if it was purchased outside of the Component Lead Time necessary to meet the Forecast in effect at the time of
purchase. 
 1.21 “Product Lead Time” shall mean the pre-determined amount of time that is agreed by the parties and
set forth in a Product Information Document. 
  

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 Design & Manufacturing Services Agreement 
  

 1.22 “Product” shall mean the product set forth in a Product Information Document.

 1.23 “Product Design Document” shall mean the document that contains the information and details set forth in Exhibit A
and other information related to the manufacture and ownership of a Product (as updated by the parties from time to time). Without limiting the foregoing, a Product Design Document shall contain the following items: (a) Bill of Materials,
(b) identification of Unique Components, (c) Product Specifications, (d) identification of any Tooling and Blue Coat Equipment necessary or useful to the manufacture of the Product, (e) ownership of any Tooling and Blue Coat
Equipment, (d) Test Plan, (f) the approved vendor list (AVL) and (g) any associated diagrams, drawings, data, formulas, processes, procedures and other documentation related or necessary to the manufacture of the Product. 

1.24 “Product Information Document” shall mean a document that contains the associated Product Design Document and any other
information and detail related to the manufacture, sale and cost of a Product substantially in the form set forth in Exhibit B. 
 1.25
“Product Specifications” shall mean the technical and functional specifications for a Product as outlined in the Product Design Document (as may be amended by the parties in writing pursuant to the terms of this Agreement). 

1.26 “PVT Prototype” shall mean the production validation testing prototype and associated test completion documents to be completed
and delivered to Blue Coat by Vendor after acceptance by Blue Coat of the DVT Prototype. 
 1.27 “Slow Moving Inventory”
shall mean a Unique Component that has been on hand at Vendor’s site for more than six (6) months provided such Component was not purchased outside of the Component Lead Time necessary to meet the Forecast in effect at the time of
purchase. 
 1.28 “Special Components” shall mean NCNR Components, MOQ Components, Long Lead Time Components and Min/Max
Components for a particular Product. 
 1.29 “Statement of Work” shall mean the written statement of work for each Product
or design project that contains (at a minimum) the information set forth in Exhibit C (as amended in writing from time to time upon mutual agreement of the parties). 
 1.30 “Supplier” shall mean a third party supplier of Components, Blue Coat Equipment, Blue Coat Materials or Tooling. 
 1.31 “Test Plan” shall mean the specifications for testing a Product that are defined by Vendor and approved by Blue Coat for each
Product. 
 1.32 “Transformation Cost” shall mean the cost incurred in manufacturing a Product other than Component Costs as
specified in a Product Information Document. Transformation Costs shall include, but not be limited to, labor costs, logistics costs, profit and other overhead costs. 
 1.33 “Total Product Cost” shall mean the Component Costs plus the Transformation Costs, as specified in a Product Information Document. 
 1.34 “Tooling” shall mean the tooling, equipment or other materials used in the manufacture of a Product that are supplied by a third
party and are paid for by Blue Coat in accordance with the terms of this Agreement. 
  

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 Design & Manufacturing Services Agreement 
  

 1.35 “Unique Components” shall mean finished goods, work in process, or Components
that are specific and unique to a Product and that is not sold by a Supplier in the ordinary course of business to any party (other than Blue Coat) as specified in a Product Information Document. 
 2. PROCESS 
 2.1 Blue Coat Requirements Document.
Blue Coat shall be responsible for the definition of the Product and delivery of the Blue Coat Requirements Document. 
 2.2
Proposal. Upon receipt of the Blue Coat Requirements Document, Vendor shall provide a proposal to Blue Coat outlining the estimated costs, delivery dates, schedules and Deliverables associated with such Product defined in the Blue Coat
Requirements Document. If agreed upon by Blue Coat, the parties shall execute a Statement of Work that embodies the terms such proposal. 
 2.3 Design Services. Vendor shall perform the Design Services as outlined in a Statement of Work and the Blue Coat Requirements Document. This shall include, but not be limited to completion and acceptance (as defined in
Section 3) of each of the following Deliverables: Product Specifications, Test Plan, EVT Prototype, DVT Prototype, PVT Prototype, Final Deliverable and the Product Design Document. If the terms of a Product Design Document and this Agreement
shall conflict in any way, the terms of the Agreement shall prevail. 
 2.4 Testing. Vendor shall perform Product testing in
accordance with the Test Plan.  
 3. ACCEPTANCE. When Vendor has completed a Deliverable, Vendor will deliver it to Blue Coat. Blue Coat will
accept or reject a Deliverable within thirty (30) days after delivery (unless another time period is specified in a Statement of Work). If Blue Coat rejects a Deliverable, Vendor will use best commercial efforts to promptly correct the failures
properly specified in the rejection notice (at no additional cost to Blue Coat) within ten (10) days. When it believes that it has made the necessary corrections, Vendor will again deliver the Deliverable to Blue Coat and the
acceptance/rejection/correction provisions above shall be reapplied until the Deliverable is accepted; provided, however, that upon the second or any subsequent rejection, Blue Coat may terminate this Agreement by ten (10) days notice unless
the Deliverable is accepted during the notice period. 
 4. MANUFACTURE AND SALE OF PRODUCTS. Upon the completion and agreement of a Product
Information Document, Vendor agrees that it will manufacture and sell to Blue Coat the Product(s) in accordance with the associated Product Specifications and other terms set forth in this Agreement and the associated Product Information Document.
Affiliates will also be able to purchase Products pursuant to the terms of this Agreement provided that Blue Coat warrants that any and all obligations and debts of the Affiliates will be discharged in a timely fashion. Blue Coat and the Affiliates
agree that they shall be jointly and severally liable to Vendor for all damages and losses arising out of delays or failures to perform under this Agreement. 
 5. ENGINEERING CHANGE ORDERS 
 5.1 Blue Coat Proposed Changes. Blue Coat may change the Product or Product Information
Document at any time. Such changes may include, but are not limited to, changes to applicable drawings, designs or specifications; required method of shipment or packing; or place of delivery. In the event that Blue Coat elects to make a change,
Blue Coat shall issue an engineering change order in writing to Vendor specifying the change (“Blue Coat ECO”). For standard Blue Coat ECOs, Vendor shall provide a written acknowledgement within one (1) day of receipt of the Blue Coat
ECO, and include a proposed schedule to implement such change, an estimate of the cost to implement such change (if applicable) and the costs associated with any Components that may become Obsolete Components as a consequence of the change (the
“Acknowledgement”). Blue Coat shall review such proposed schedule and estimates and either accept or reject 

  

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 Design & Manufacturing Services Agreement 
  

 
the Acknowledgement. If Blue Coat accepts the Acknowledgement, Blue Coat shall pay Vendor the amounts specified in the Acknowledgement in accordance with the
terms agreed to by the parties. Notwithstanding the above, with the exception of approved Unique Components and Special Components, Blue Coat shall not be responsible for reimbursing Vendor for Obsolete Components that were purchased outside of the
Product Lead Time necessary to meet the Forecast in effect at the time of the Blue Coat ECO (defined below). 
 5.2 Vendor Proposed
Changes. 
 5.2.1 General Restrictions. Subject to the terms of this Section, Vendor may not (a) relocate any
part of the facility in which Product(s) are manufactured; (b) make any change to Product Specifications or the manufacturing procedures or quality assurance processes associated with Product(s); or (c) change any other Blue Coat
requirements related to a Product, including without limitation the manufacturing or supply of a Product (each of (a), (b) and (c) shall be considered an “Engineering Change”). 
 5.2.2 Change Procedure. Where Vendor wishes to implement an Engineering Change, Vendor shall issue an engineering change order in
writing to Blue Coat specifying the change (“Vendor ECO”). The Vendor ECO shall include, without limitation, sufficient details regarding the nature of the proposed Engineering Change, the reason for the proposed change, details regarding
its implementation, the impact of the change (including but not limited to scheduling and costs), and the proposed implementation date of the Engineering Change. Promptly after issuing the foregoing Vendor ECO, Vendor shall, at a mutually agreed
upon cost, provide Blue Coat with sufficient evaluation samples of the affected Product (after having incorporated the Engineering Change) and other information requested by Blue Coat to enable Blue Coat to evaluate the Engineering Change. Blue Coat
may, acting in its sole discretion, reject any Engineering Change and shall notify Vendor in writing of such rejection within thirty (30) days from its receipt of such Product samples and other information. While Blue Coat is considering an
Engineering Change or if Blue Coat rejects an Engineering Change, Vendor shall continue to perform the Design Services and manufacture and supply such Product, in accordance with the terms of this Agreement, without the Engineering Change. Where
Blue Coat provides its written approval of the Engineering Change, Vendor shall implement the change on a mutually agreed schedule and cost. 
 6.
SUBCONTRACTORS. The parties acknowledge that the obligations set forth in this Agreement must be performed by Vendor except when Vendor provides prior written notification to Blue Coat. Vendor shall be responsible for the activities of
Subcontractors. Blue Coat will not be responsible for payment or other obligations to any Subcontractors. 
 7. PURCHASE ORDERS 
 7.1 Purchase Orders. Blue Coat purchase orders may be issued in writing, by mail or facsimile, or by electronic means as the parties may
from time to time agree. Blue Coat’s purchase orders for Products shall include the following: 
 (a)
Identification of Products ordered by Blue Coat part number and descriptions; 
 (b) Quantity to be purchased;

 (c) Price of Products ordered; 
 (d) Date the Product is to be delivered to Blue Coat or its designated forwarder in accordance with F.C.A. term (INCOTERMS 2000)
(“Delivery Date”); 
 (e) Shipping destination; and 
 (f) Labeling instructions. 
  

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 7.2 Controlling Terms. All purchase orders and invoices under this Agreement shall be
subject only to the terms and conditions hereof. In the event the terms of any such purchase order, confirmation or similar document conflicts with or are additional to the terms of this Agreement, the terms of this Agreement alone shall apply and
shall govern regardless of execution of such document by one or both parties. Any other Vendor terms and conditions shall not apply to this Agreement or the purchase orders. 
 7.3 Purchase Order Process. All purchase orders received by Vendor shall be deemed accepted by Vendor unless Vendor notifies Blue Coat
within ten (10) business minutes of receipt that such purchase order is not in compliance with the terms of this Agreement. If Vendor has any reason to believe it will not meet the required shipment date, it shall notify Blue Coat within one
(1) business hour provided Blue Coat has submitted a purchase order quantity is consistent with the current Forecast. Blue Coat shall have the ability to track the status of any purchase order online using a Vendor maintained web site. Vendor
shall provide Blue Coat with an electronic shipping notification within ten (10) minutes after a Product has shipped. Invoicing will be daily with all relevant and accurate tracking numbers and freight charges included with the invoice. Vendor
shall include any information pertaining to the shipping of a Product as reasonably requested by Blue Coat. 
 7.4 Forecasts.
Before the beginning of each month, Blue Coat shall provide a non-binding, rolling twelve (12) month forecast and a binding four (4) week forecast setting forth Blue Coat’s demand for Product (“Forecast”). 
 7.5 Cancellation of Purchase Orders. Subject to Blue Coat’s liability for Special Components and Unique Components as set forth in
Section 12, Blue Coat may provide Vendor with a cancellation notice at any time. Vendor shall, upon receipt of such notice, stop work on such units of Products to the extent specified therein. 
 7.6 Special Orders. Upon written request from Blue Coat, Vendor shall use its best commercial efforts to fulfill order for Products in
excess of that set forth in Blue Coat’s Forecast. Blue Coat may, at its option, submit purchase orders requesting immediate shipment (as early as same day shipment) (“Rush Orders”). Vendor shall use its best efforts to fill Rush
Orders. 
 8. DELIVERY TERMS 
 8.1
Packaging. Vendor shall package and label Product(s) in accordance with the packaging and shipping specifications specified in a Product Specifications. Vendor shall not mark or label a Product except as set forth in the associated
Product Specifications. Vendor shall be responsible for any loss or damage to Products due to Vendor’s failure to preserve, package or handle a Product in accordance with Blue Coat’s packaging and shipping specifications. Vendor will bear
all risk of loss, damage or destruction to the ordered Products until delivery to a carrier specified by Blue Coat in writing. 
 8.2
Shipping. Vendor shall tender Product(s) F.C.A. Vendor’s premises (INCOTERMS 2000). Vendor shall ship Product(s) to the designated forwarder who will ship to the location set forth in the purchase order. For the avoidance of doubt,
Vendor shall perform direct fulfillment of most purchase orders. In case Vendor is requested to ship Product(s) to the location set forth in the purchase order, the associated freight charges will be invoiced by Vendor to Blue Coat on the invoice
associated with such purchase order. Title and risk of loss of the Product(s) will pass to Blue Coat upon delivery of the Products to Blue Coat’s forwarder. 
 8.3 Late Shipments. Vendor shall immediately notify Blue Coat in writing upon becoming aware that any part of a shipment of Products will not be, or has not been, delivered by the Delivery Date and shall
provide reasons for the delay and a revised Delivery Date. Vendor’s revised Delivery Date must take into account the use of all means available to expedite production and delivery of the delayed Products, including 

  

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 Design & Manufacturing Services Agreement 
  

 
without limitation expediting the procurement of materials, using expedited transportation means and labor overtime (“Accelerated Measures”).
Vendor shall bear the cost difference incurred as a result of the Accelerated Measures provided that such delay is attributable to Vendor. A default by the designated forwarder will not, by itself, constitute a cause attributable to Vendor.

 8.4 Inspection. Notwithstanding any prior inspection or payment by Blue Coat, all Products shall be subject to final inspection and
acceptance within sixty (60) days after delivery. 
 8.5 Documentation. Vendor shall maintain complete and accurate
shipping documentation for all shipments for a minimum of five (5) years following the date of shipment . Shipment documentation includes the purchase order, packing slip, commercial invoice, carrier waybill, any information pertaining to
direct fulfillment of Product and Vendor billing invoice. Blue Coat and its authorized agents and representatives shall have access to such records for purposes of performing an audit during normal business hours during the term of this Agreement
and during periods which Vendor is required to retain such records. 
 8.6 Allocation. Vendor agrees that, in the event of a
need to allocate performance among Vendor’s customers, Blue Coat’s order(s), subject to normal lead-time requirements, shall be filled according to an allocation plan no less favorable than that provided to any other Vendor customer.
Vendor shall provide Blue Coat with immediate notice if it anticipates or has reason to believe that Vendor’s output of a Product shall not be sufficient to meet Blue Coat’s Forecast. 
 9. PRICING AND PAYMENT TERMS 
 9.1
Prices. The initial price for a Product shall be set forth in the associated Product Information Document. Prices will be reviewed on a quarterly basis and are subject to anticipated reductions as provided in this Agreement. The Total Product
Cost model shall follow the model set forth below: 
  

			
	 Cost Element
	  	 Calculation

	Bill of Material	  	Actual - No Mark-Ups
		
	Material Mark Up	  	3% of PCBA BOM cost (Not include HDD/ CPU/ Memory/ Enclosure/ Power Suppler)
		
	System Assembly Cost	  	Fremont Burdened Labor Rate: $37.50/hour
		
	System Test Cost	  	Fremont Burdened Labor Rate: $37.50/hour
		
	ESS with ORT	  	For every 1 hour of ESS, estimated 8 minutes of labor cost might be required by BC experiences
		
	Utility Test Costs	  	Fremont Burdened Rate: $10/hour (actual - no mark-ups)
		
	Administration, Overhead & Profit	  	Flat Rate: $50
		
	Freight	  	Actual - No Mark Ups / Pending mutually agreed shipping route and method

 9.2 Non-Recurring Engineering Fee. As consideration for the Tooling and any other items
specifically outlined in a Product Design Document, Blue Coat shall pay to Vendor a non-recurring engineering fee as specified in the associated Product Information Document or SOW (as the case may be). 
 9.3 Taxes. Prices stated in a Product Information Document are in U.S. dollars and are inclusive of all taxes, other than taxes on a party’s
net income, which shall be the sole responsibility of that party. Subject to Blue Coat’s provision to Vendor of an appropriate resale certificate, Vendor shall be solely responsible for any sales or use tax assessed upon the manufacture and
sale of Product(s) to Blue Coat hereunder. 
  

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 Design & Manufacturing Services Agreement 
  

 9.4 Payment Terms. Vendor shall invoice Blue Coat upon shipment of a Product. All
payments due hereunder shall be paid in US dollars not later than forty-five (45) days following the invoice date (which shall be no earlier than the shipment date) specified in an accurate invoice issued by Vendor without any delay,
deductions, set-offs, discounts or withholdings whatsoever. In case an inaccurate invoice is received by Blue Coat, Blue Coat shall notify Vendor within ten (10) business days of receipt of the inaccurate invoice. After such notice, Vendor
shall promptly correct and reissue an invoice for the accurate payment due and payable. Blue Coat shall be obligated to make the payment within forty-five (45) days following the shipment date despite the foregoing dispute. Vendor shall be
entitled to charge Blue Coat, and Blue Coat shall pay to Vendor, interest at the rate of 1.5% per month on all amounts not paid when due, except that Blue Coat shall have a grace period of two days. Notwithstanding the above, if Vendor is not
able to receive funds through Evaluated Receipt Settlement (ERS), then the grace period set forth above shall be five (5) days. 
 9.5 Monthly Report. Within the first five (5) days of each month, Vendor shall provide Blue Coat with a detailed accounts receivable aging report (in electronic format). Such report shall be sent to
accountsreceivable@bluecoat.com. 
 9.6 Favorable Terms. Vendor warrants that during the term of this Agreement the terms and
conditions of this Agreement, including discounts, prices and shipping, are no less favorable than the terms, conditions, discounts and prices given to any third party that either retains Vendor to perform design services or purchases or licenses
similar quantities of the similar products or services from Vendor under similar terms and conditions. 
 9.7 Non-approved Charges.
Blue Coat shall not be liable without Blue Coat’s prior approval to Vendor for any overtime charges, freight charges or Component product price increases incurred by Vendor. 
 10. COST REDUCTIONS 
 10.1 Cost Reduction. Vendor shall use commercially diligent efforts to
achieve ongoing reductions in both Component Costs and Transformation Costs. Vendor shall work on achieving cost savings in both materials and processes, and such savings shall serve to reduce the Total Product Cost of a Product. In addition, Vendor
shall institute any cost reduction proposals reasonably suggested by Blue Coat, and shall reduce the Total Product Cost of Product(s) to Blue Coat by an amount equal to the per unit saving realized therefrom. Vendor agrees to pass on the benefits of
cost reductions as follows: 
 10.1.1 Blue Coat Suggested Cost Reduction 
 (a) If Blue Coat suggests or initiates the cost reduction (including without limitation cost reductions resulting from Blue
Coat’s directions to Vendor with respect to the specification, use or acquisition of Components), then the Total Product Cost of all Products to which the reduction is applicable shall be decreased by 75% of such cost reduction for the first
three (3) months following the sale of the first Product to which such cost reduction is applicable; and 
 (b)
The price of all Products to which the reduction is applicable shall be decreased by 100% of such cost reduction after the three (3) month period has ended. 
 10.1.2 Vendor Suggested Cost Reduction 
 (a) If Vendor initiates a cost reduction, then the price of all Products to which the reduction is applicable shall be decreased by
25% of such cost reduction for a period of three (3) months following the sale of the first Product to which such cost reduction is applicable; and 
  

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 (b) The price of all Products to which the reduction is applicable shall be
decreased by 50% of such cost reduction after the three (3) month period has ended; and 
 (c) The price of all
Products to which the reduction is applicable shall be decreased by 100% of such cost reduction after the six (6) month period above has ended. 
 10.1.3 Neutral Cost Reduction. If there is a reduction in the cost of a Component that is not initiated by Vendor or Blue Coat, then the Total Product Cost of all Products to which the reduction is applicable
shall be decreased by 100% of such cost reduction immediately. 
 11. SOURCING. 
 11.1 Sourcing of Components. Vendor shall be primarily responsible for the procurement of the Components, but shall seek Blue Coat’s input
with respect to such Components. However, the source and terms of procurement for critical Components (as determined by Blue Coat), shall be subject to acceptance by Blue Coat. Vendor will provide Blue Coat with copies of preliminary specifications,
working drafts of specifications and completed portions of specifications pertaining to the Components throughout the term of this Agreement. Vendor will use its best efforts to negotiate appropriate terms with Suppliers. Vendor will promptly
provide Blue Coat with a copy of the final specification for any Component when it is completed. Vendor agrees to use all diligent efforts to ensure that any Component used in the design and manufacture of a Product does not have a foreseeable end
of life that occurs prior to the end of the projected Product’s life. 
 11.2 Approved Vendors. Vendor shall notify Blue Coat
immediately of all changes to the existing production processes, supply chain or approved vendor list set forth in the associated Product Information Document. No change is to be released to production without the written consent of Blue Coat. The
following basic rules are applicable: 
 11.2.1 A Parts. Any change to a Component that is deemed an “A Part”
(as defined in the associated Product Information Document) shall require the written approval and qualification of both Blue Coat and Vendor. In addition a Blue Coat ECO and Vendor ECO are required. 
 11.2.2 B Parts. Any change to a Component that is deemed a “B Part” (as defined in the associated Product Information
Document) shall require the written approval and qualification of only Vendor. In addition a Blue Coat ECO and Vendor ECO are required. 
 11.2.3 C Parts. Any change to a Component that is deemed a “C Part” (as defined in the associated Product Information Document) shall require a written notification from Vendor to Blue Coat and a
Vendor ECO. 
 12. INVENTORY LIABILITY. 
 12.1 Inventory Liability Report. Vendor shall provide Blue Coat with a monthly report setting forth the number of Slow Moving Inventory, Excess Components and Obsolete Components. 
 12.2 Disposition Process for Obsolete and Excess Components. On a quarterly basis (based on Blue Coat’s fiscal quarter), the following
disposition process shall be followed for all Obsolete Components and Excess Components: 
 12.2.1 Vendor shall use
diligent commercial efforts throughout the quarter to sell such Slow Moving Inventory, Obsolete Components and/or Excess Components, 
  

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 Design & Manufacturing Services Agreement 
  

 12.2.2 If Vendor is unable to sell such Obsolete Components and/or Excess
Components before the end of the fiscal quarter, then Blue Coat will either (a) pay an agreed upon price to Vendor to cover the cost of both the Component and the cost of scrapping such Component, (b) pay an agreed upon price to Vendor to
cover the acquisition of the Component by Blue Coat (and delivery to a third party location) or (c) pay an agreed upon carrying cost to Vendor and Vendor shall retain such Obsolete Components and/or Excess Components in inventory on Blue
Coat’s behalf (provided that Obsolete Components need not be carried by Vendor in excess of three (3) months and either (a) or (b) shall be applicable after the three (3) month period has ended). 
 12.3 Disposition Process for Slow Moving Inventory. Before the end of each fiscal quarter, Blue Coat and Vendor shall agree upon a carrying cost
to be paid by Blue Coat to Vendor in order to retain (on Blue Coat’s behalf) any Slow Moving Inventory. 
 12.4 Mitigation.
Subject to the notification requirements set forth herein, Vendor will exercise commercially reasonable efforts to mitigate Blue Coat’s liability for Excess Components, Obsolete Components Slow Moving Inventory and Special Components,
including, without limitation, by canceling or rescheduling materials orders, selling materials or utilizing the materials for other customers. However, Vendor shall obtain prior written consent from Blue Coat prior to any sale of any A Part
Component (as defined in the Product Information Document). Upon request from Blue Coat, Vendor shall provide Blue Coat with evidence of such efforts to mitigate liability. Unless otherwise contained herein, the maximum total Blue Coat liability for
any Slow Moving Inventory, Excess Components or Obsolete Components may not exceed Vendor’s original unit price for such Components as set forth in the Product Information Document. 
 12.5 Exceptions. If the Forecast for any period is reduced due to a Warranty defect (where such Warranty defect caused a Customer not to
place an expected order for Products) or due to an Epidemic Failure, then Blue Coat shall not be liable (under this Section 12 or otherwise) for any related Component or Product costs or expenses. Upon request of Vendor, Blue Coat shall provide
reasonable documentation supporting the claim that an order was expected and included in a previous Forecast. 
 13. REPORTING 
 13.1 Website. Vendor shall at all times maintain a fully updated web site in order for Blue Coat to monitor production and inventory levels of
Product, Components, Blue Coat Material, Blue Coat Equipment and Tooling. The information on the website should include any operational, quality and manufacturing control data associated with a Product. In addition, the website should include costed
reports setting forth the amount of time each Component has been in inventory, the Forecast under which each Component was purchased, the date the Component was purchased and any open purchase orders for Components that have been ordered but are not
in inventory. 
 13.2 Accounting Records. In addition, Vendor shall maintain complete and accurate records of all amounts billed and
billable to Blue Coat and payments made by Blue Coat hereunder (in accordance with U.S. generally accepted accounting practices) for a period of three (3) years following the expiration or termination of this Agreement. Vendor will not modify
its accounting treatment or methods for calculating or determining or allocating costs relating to a Product without Blue Coat’s prior written consent, which consent shall not be unreasonably withheld. Vendor agrees to provide reasonable
supporting documentation concerning any disputed invoice to Blue Coat within thirty (30) days after Blue Coat provides written notice of dispute to Vendor. 
 13.3 Audit. Blue Coat and its authorized agents and representatives shall have access to all records specified in this Section and any other record related to Vendor’s performance under this Agreement
(excluding any financial report and accounting books unless such financial reports or accounting books are requested by a government agency or pursuant to government regulation) for purposes of audit during normal business hours 

  

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during the term of this Agreement and during periods which Vendor is required to retain such records and upon at least ten (10) days prior notice. Any
and all such records disclosed to Blue Coat shall be deemed “Confidential Information” (whether or not such records are labeled or identified as such). 
 14. COMMUNICATION. Vendor agrees to provide Blue Coat with written notice as soon as commercially practicable upon the occurrence of any event that could affect a Product. This includes, but is not limited to: supply chain issues
(e.g., shortages in Components or other materials necessary for the manufacture of a Product, issues with Suppliers or relationships with Suppliers, supplier corrective action report notices, etc.), design issues (e.g., issues with design validation
testing), delivery issues (e.g., transit delays, strikes, etc.) operational issues (e.g., work order fall-outs greater than 90%, kit level failures) and Vendor business issues (e.g., change in business stability, any material press releases
regarding Vendor business, etc.). Vendor shall provide Blue Coat with at least six (6) months notice prior to the date any Component or material used in the manufacture of a Product will reach end of life status. Blue Coat may either select a
substitute component or place one (1) final binding purchase order, within the last time buy period notified by such Supplier.  
 15. QUALITY

 15.1 Quality Control. Vendor acknowledges and agrees that all Products will be designed and manufactured in accordance with the
highest industry standards applicable for similar products and also in accordance with the Quality Control Standards set forth in Blue Coat’s Operations Supplier Quality Manual. 
 15.2 Quality Control Personnel. Blue Coat may at its option and expense send its quality control personnel to Vendor’s facilities to assist
in or observe the work in progress. Blue Coat may from time to time suggest commercially reasonable modifications to Vendor’s procedures for performing the work under this Agreement for the purpose of enhancing or assuring quality, and Vendor
shall, using Vendor’s best judgment, act in good faith to either (a) comply with such suggestions or (b) explain to Blue Coat why such suggestion is not in the best interests of Blue Coat or why such suggestion should not be
implemented. 
 15.3 Facility Inspection. Vendor shall, whenever reasonably requested by Blue Coat, permit Blue Coat, or a third party
acting on behalf of Blue Coat, the opportunity to inspect (at Vendor’s facility) the processes and procedures used by Vendor to perform its obligations under this Agreement. Blue Coat shall provide Vendor with forty-eight (48) hours notice
prior to the visit. 
 16. QUARTERLY REVIEWS 
 16.1 Information Production. Vendor shall provide and Blue Coat will review all Component Costs and Transformation Costs on a quarterly basis. Costs to be reviewed include, but are not limited to, time studies for production and
costs related to repairs, testing, kitting, inventory management, shipping and quality inspections. 
 16.2 Management Reviews.
After receipt of the information set forth in Section 16.1, Blue Coat and Vendor shall, when Blue Coat requests, meet (by telephone, videoconference or in person) to discuss Vendor’s performance, prices and other issues relating to this
Agreement, including but not limited to Vendor’s performance with regard to technology, quality, cost, availability and ease of doing business (collectively “TQCAB”). At each such meeting, Product prices shall be reviewed for
adjustments, and the parties shall agree on the appropriate price adjustments and the manner and the timing of their implementation, on a fair and reasonable basis. The parties will mutually agree upon and set price reduction targets for each of the
new two (2) calendar quarters based on Forecast and other factors affecting price, including without limitation those listed in Product Information Documents and identify actions and corresponding responsibilities of the parties required to
achieve the target price reductions. If Vendor fails to implement previously agreed targets with respect to Vendor TQCAB, then Blue Coat and Vendor will cooperate to identify the cause of such failure in order for both parties to achieve the target
price reductions afterward. 
  

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 17. TOOLING, BLUE COAT EQUIPMENT & BLUE COAT MATERIALS 
 17.1 Provision of Blue Coat Consigned Items. Blue Coat may provide Blue Coat Consigned Items to Vendor pursuant to the terms and conditions of this
Agreement for use by Vendor in the design, testing, manufacture and supply of Products exclusively for and to Blue Coat. Vendor shall use Blue Coat Materials on a “first-in, first-out” basis to reduce the risk of obsolete or unusable
material. 
 17.2 Storage. Except as otherwise provided in the Agreement, Vendor shall, at its cost, be responsible for
safekeeping at its manufacturing facility all Blue Coat Consigned Items and Tooling, shall maintain the same in good condition and repair, shall store the Blue Coat Consigned Items and Tooling at such facility free of charge in a place that meets
the requirements of this Agreement and shall segregate such Blue Coat Consigned Items and Tooling from other customer’s materials. All such Blue Coat Consigned Items and Tooling, while in the possession and under the control of Vendor, shall be
at Vendor’s risk. 
 17.3 Orders for Blue Coat Materials. After execution of this Agreement, Vendor shall order, take delivery of
or pay for, if applicable, by way of a purchase order, those Blue Coat Materials, if any, required to manufacture the Products ordered by Blue Coat. All purchase orders submitted to Blue Coat by Vendor shall include a description of the required
Blue Coat Materials, the quantities ordered, the prices thereof, if applicable, the proposed delivery date, and such other information as the parties may agree from time to time. Amounts due from Vendor will be paid forty five (45) days
following the invoice date which shall be no earlier than the shipment date. Vendor purchase orders may be issued in writing, by mail or facsimile, or by electronic means as the parties may from time to time agree. 
 17.4 Tracking. Vendor shall maintain complete and accurate records of the quantity of Blue Coat Materials received from Blue Coat, along with the
quantity used in Products shipped to or on behalf of Blue Coat and the quantity wasted in the design, manufacture, test and supply of Products. Vendor shall provide such records or related information as required from time to time by Blue Coat
during the term and Blue Coat may, on two (2) business days notice to Vendor, audit such information at Vendor’s site. Vendor shall maintain and properly safeguard any such wasted Blue Coat Materials so that it may be audited hereunder and
salvaged, should Blue Coat desire. 
 17.5 Permitted Use. Blue Coat grants Vendor a limited license to use the Blue Coat Consigned
Items and Tooling only as set forth in this Agreement. Vendor acknowledges and agrees that Vendor is only a bailee of the Blue Coat Consigned Items (excluding the Blue Coat Materials paid for by Vendor) and Tooling on the terms and conditions set
out this Agreement, and that Vendor will use them in accordance with any operation instructions provided or government regulations. Vendor will not pledge or otherwise encumber the Blue Coat Consigned Items or Tooling. In the event the premises in
which the Blue Coat Consigned Items or Tooling is installed are encumbered in any way (e.g. a financial institution has a security interest in the premises or property thereon), Vendor shall provide notice to any party having such an interest that
(a) the Blue Coat Consigned Items or Tooling are contained within such premises; (b) the Blue Coat Consigned Items (excluding the Blue Coat Materials paid for by Vendor) and Tooling are the property of Blue Coat; (c) any encumbrance
over the premises or Vendor’s property does not extend to the Blue Coat Consigned Items(excluding the Blue Coat Materials paid for by Vendor) or Tooling; and (d) Blue Coat retains its rights of recovery and repossession of the Blue Coat
Consigned Items(excluding the Blue Coat Materials paid for by Vendor) and Tooling. Vendor shall immediately report to Blue Coat: (i) any seizure or attachment of the Blue Coat Consigned Items or Tooling by Vendor’s creditors; (ii) any
petition in bankruptcy, insolvency, receivership or similar proceedings filed by, or against, Vendor; or (iii) any arrangement, composition or similar agreement for the benefit of Vendor’s creditors. 
  

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 17.6 Prohibited Uses. Vendor shall use the Blue Coat Consigned Items and Tooling only for the
permitted use as described in this Agreement and only for the exclusive benefit of Blue Coat. Any use or activity by or on behalf of Vendor associated with Blue Coat Consigned Items or Tooling that is not expressly permitted by this Agreement is
prohibited. Without limiting the generality of the immediately preceding sentence, Vendor agrees not, and not to allow others, to: (i) modify, alter, disassemble, cut, destroy, cleave, crush or reverse-engineer Blue Coat Consigned Items or
Tooling; (ii) sell, rent, loan, donate, give any guarantee or security interest in, transfer possession or purport to transfer title in any way of, Blue Coat Consigned Items or Tooling to any third party; (iii) allow any employee, agent or
contractor not adequately trained to work with Blue Coat Consigned Items or Tooling or not involved in the testing or demonstrations of the Blue Coat Consigned Items or Tooling to have access to the Blue Coat Consigned Items or Tooling; or
(iv) use or transport the Blue Coat Consigned Items or Tooling outside of Vendor’s own facilities without written permission from Blue Coat. 
 17.7 Costs. In the event Blue Coat Consigned Items or Tooling may require repair, upgrading or calibration or has exceeded its useful life, Vendor shall notify Blue Coat of such and Blue Coat shall
reimburse or replace such Blue Coat Consigned Items or Tooling. Both parties recognize that such reimbursement shall only be for materially significant, actual incurred costs. Vendor shall bear all risk of loss regarding, and be liable for any
damage to, the Blue Coat Consigned Items and Tooling (reasonable wear and tear excepted). Vendor will insure the Blue Coat Consigned Items and Tooling against loss or damage during the term of this Agreement and while in Vendor’s custody, and
will deliver to Blue Coat, upon request, proof of such insurance. Vendor shall pay to Blue Coat the new replacement cost as assessed by Blue Coat and agreed by Vendor, of any Blue Coat Consigned Item or Tooling that is lost, stolen, destroyed or
damaged beyond repair. Notwithstanding the foregoing, if a Blue Coat Consigned Item or Tooling is destroyed or damaged beyond repair and such destruction or damage is a result of complying with direct instructions from Blue Coat, then Vendor shall
not be responsible for the replacement cost specified above. Vendor shall bear no risk of loss or not be liable for any damage to the Blue Coat Consigned Items and Tooling if Blue Coat delays or refuses to receive Vendor’s return of such Blue
Coat Consigned Items and Tooling either after expiration or termination of this Agreement or upon Vendor’s reasonable request. Any item, article, accessory, document or thing supplied in conjunction with the Blue Coat Consigned Items (including
operation manuals) or Tooling not returned to Blue Coat upon termination or expiration of this Agreement shall be paid for by Vendor with a fee determined by Blue Coat being charged to Vendor. 
 17.8 Tooling. As it applies to Tooling, the obligations of Vendor set forth in this Section 15 shall apply regardless of whether the Tooling
is located at Vendor site or a third party site. Vendor shall, upon request from Blue Coat, transfer all right, title and interest to the Tooling to Blue Coat, free and clear of any liens or other encumbrances. Upon any termination or expiration of
this Agreement, Vendor shall assist and cooperate in good faith with the physical transfer by Blue Coat of the Tooling to other locations designated by Blue Coat at Blue Coat’s cost. 
 17.9 Delivery of Blue Coat Consigned Items. Vendor shall assist with any customs/export/trade related approvals, duties and/or other obligations
as may be required for the delivery of the Blue Coat Materials, Blue Coat Equipment and Tooling at Blue Coat’s cost. 
 18. OWNERSHIP 

18.1 Blue Coat Property. Subject to Section 18.2 and the NRE payment from Blue Coat (as specified in the Product Information Document),
Blue Coat shall own all right, title and interest in and to the Product Design Document, the Product Information Document, all Product(s), portions of Products currently in production, Tooling and Blue Coat Consigned Material. 
 18.2 Inventions. Excluding Vendor Property (defined below) and subject to the full payment of NRE to Vendor, (i) any and all Product designs,
inventions or improvements, (ii) any other design, inventions or improvements and any and all discoveries, products, computer programs (including source code), tooling, procedures, improvements, developments, drawings, works of authorship,
specifications, data, memoranda, 

  

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notes, documents, manuals, information, and other items made, authored, conceived or developed by or for Blue Coat, which result from or relate to a Product
(items (i) and (ii) are referred to, collectively, as “Product Information”), and (iii) any patent rights, copyrights, trade secret rights, mask work rights and other rights throughout the world (collectively,
“Intellectual Property Rights”) contained or embodied in, or arising from the Product Information shall be the sole property of Blue Coat. Blue Coat shall have the sole right to obtain and to hold in its own name any copyrights, patents,
mask work rights, trademark registration, or other legal protection as may be appropriate to such Product Information and any derivatives thereof. Blue Coat shall have the sole right to determine the method of protection for any such Product
Information, including the right to protect the same as trade secrets, to use and disclose the same without prior patent application or to file registration for copyright, patent, mask work rights, or trademark in its own name, as Blue Coat deems
appropriate in its sole and absolute discretion. Subject to the provisions of this Agreement, Blue Coat hereby grants to Vendor, its affiliates, and subcontractors, which manufactures the Product on behalf of Vendor, a limited, personal, worldwide,
non-exclusive license, without the right to sublicense, to Product Information, and any associated Intellectual Property Rights to make, manufacture, test, assemble and repair the Product as specified herein. 
 18.3 Vendor Property. All right, title and interest in Vendor’s pre-existing technology and IP Rights and Confidential Information
(“Pre-existing Technology”) shall remain Vendor’s exclusive property. Vendor shall retain all right, title and ownership to any discoveries, inventions, technical information, procedures, design, manufacturing or other processes,
software, firmware, technology, know-how or other Intellectual Property Rights comprising Vendor’s design techniques, manufacturing process that are used or created by Vendor in performing the Design Services or manufacturing services or other
work performed under this Agreement and which do not comprise part of the Product Design Document, Product Information Document or Product Information (“Vendor Process Technology”). “Pre-existing Technology” and “Vendor
Process Technology” shall be deemed “Vendor Property”. During the term of this Agreement, Vendor hereby grants to Blue Coat a worldwide, irrevocable, perpetual, non-exclusive, fully paid-up, royalty free right and license to
reproduce, distribute, perform use, import, export, manufacture, have manufactured, offer to sell and sell any Vendor Property or other intellectual property rights incorporated or used in the Products manufactured for Blue Coat under this
Agreement. 
 18.4 Assignment. The parties hereby make any assignments necessary to accomplish the foregoing ownership
provisions. In interpreting such ownership provisions anything made or conceived or reduced to practice by an employee or contractor of a party in the course of performance under this Agreement will be deemed so made or conceived or reduced to
practice by that party; each party has and will have appropriate agreements with all such employees and contractors necessary to fully effect the provisions of this Section 18.4. 
 18.5 Perfection. A party being assigned any proprietary right under this Agreement will have the exclusive right to, and, at such
party’s expense, the assigning party agrees to assist such party in every proper way (including, without limitation, becoming a nominal party) to, evidence, record and perfect the assignment and to apply for and obtain recordation of and from
time to time enforce, maintain, and defend such proprietary rights. Each party will execute all documents as the other may reasonably request for such purposes. 
 18.6 Proprietary Rights Notices. Vendor agrees to properly mark each Product and any accompanying documentation with Blue Coat’s copyright or other proprietary rights notice, as directed by Blue Coat, to
indicate Blue Coat’s intellectual property rights in such Products. Unless otherwise provided herein, nothing in this Agreement shall be construed as a grant of any license, right or interest in any trademark, trade name or service mark of
either party, or any third party from whom either party may have acquired license rights. 
 18.7 Trademark Use. All trademarks,
service marks, trade names or logos identifying the Products or Blue Coat (the “Marks”) are the exclusive property of Blue Coat. Vendor will not take any action that jeopardizes Blue Coat’s proprietary rights or acquire any rights in
the Marks except as specifically set forth below. Vendor will not register, directly or indirectly, any trademark, service mark, trade name, copyright, 

  

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company name or other proprietary or commercial right which is identical or confusingly similar to the Marks or which constitute a translation into other
languages. Vendor will use the Marks exclusively to identify the Products. Any use of the Marks shall clearly identify Blue Coat as the owner of the Marks. Vendor will immediately notify Blue Coat if Vendor learns (i) of any potential
infringement of the Marks by a third party, or (ii) that the use of the Marks may infringe the proprietary rights of a third party. Blue Coat will determine the steps to be taken under those circumstances. In connection with any potential
infringement of or by the Marks, Vendor will (i) provide Blue Coat with the assistance that Blue Coat may reasonably request, and (ii) not take steps on its own without Blue Coat’s prior approval. 
 19. WARRANTIES 
 19.1 Authority. Each party
warrants that it has the right and authority to enter into this Agreement and perform its obligations hereunder. 
 19.2
Quality. Vendor shall perform and hereby warrants that all Products, when delivered in accordance with the purchase order, will have passed the test and quality control procedures set forth in the Operations Supplier Quality Manual
and will meet the associated Product Specifications for such Product. 
 19.3 Product Warranty. Subject to the terms of this
Section 19.3, Vendor warrants to Blue Coat that each Product: (a) has been manufactured in accordance with Blue Coat’s applicable manufacturing testing procedures; (b) meets the requirements set forth in the purchase order and
Product Information Document and; (c) shall be free from defects in design, material and workmanship (“Warranty”). The warranty period for a Product shall be three (3) years from the Delivery Date specified in the purchase order
(“Warranty Period”). 
 19.4 Service Warranty. Vendor warrants to Blue Coat that any services to be provided by Vendor
hereunder shall be performed to a standard reasonably acceptable in the industry. 
 19.5 Design Warranty. Vendor warrants to Blue
Coat that it will perform the Design Services so as to produce a Final Deliverable that conforms in all material respects to the Product Design Document, the Statement of Work and the Blue Coat Requirements Document. 
 19.6 Warranty Process. Products that fail to meet the Warranty during the Warranty Period shall be returned to Vendor (pursuant to the RMA process
set forth in Section 19.9) and, at Blue Coat’s option, Vendor shall, at Vendor’s cost, promptly repair or replace such Product at no cost to Blue Coat. Notwithstanding the above, if a Product fails to meet the Warranty during the
Warranty Period and the Customer refuses a replacement, then, at the option of Blue Coat, Vendor shall refund any amounts paid for such Product. All Products repaired or replaced under warranty shall be warranted for a period equal to the greater or
the remainder of the original Warranty Period or twelve (12) months. 
 19.7 Out of Warranty Process. Products that fail to meet
the Warranty after the Warranty Period shall be returned to Vendor (pursuant to the RMA process set forth in Section 19.9) and Vendor shall promptly repair such Product if appropriate. Blue Coat shall pay the fee set forth in the Product
Information Document for all such repairs. 
 19.8 Replacement of Product. Upon request from Blue Coat, Vendor will deliver a
replacement of any product that does not meet the Warranty requirements (whether or not under the Warranty Period). In such case, if such notice is received by Vendor before noon, then Vendor shall deliver a replacement Product to the location
specified by Blue Coat before 1pm that same business day. If such notice is received by Vendor after noon, then Vendor shall deliver a replacement Product to the location specified by Blue Coat before 1pm the next business day. 
  

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 19.9 Product Returns. Within eight (8) business hours after receipt of a request to
return a Product, Vendor shall issue a Return Materials Authorization number (“RMA”). If no RMA is issued within two (2) business days, Blue Coat (or its customer) may return the Product without further notice to Vendor and without an
RMA. In the event that a Product is determined to be “dead on arrival”, Vendor shall pay all costs associated with the transportation of the returned Product, including the cost of transportation from Blue Coat to Vendor’s plant, and
where applicable, transportation of replacement or repaired Products to Blue Coat, as well as all insurance costs associated with the returned Products and the repaired and replacement Products. In all other circumstances, freight costs shall be
borne by the shipper. Any Products repaired by Vendor shall not be delivered as “new” products.  
 19.10 No Trouble
Found. The Product Information Document shall specify a “no trouble found” percentage threshold (“NTF Percentage”) and the fees associated with exceeding such NTF Percentage. If the percentage of products returned to Vendor
for “no trouble found” exceeds the NTF Percentage (as measured on a quarterly basis), then Blue Coat shall pay the amounts specified in the Product Information Document. For purposes of this Agreement “no trouble found” means a
Product or Component is returned as defective but no defect is found after all normal testing procedures are performed and therefore the Vendor is unable to determine the need for repair or further corrective action. 
 19.11 Failure Analysis. Vendor shall, within two (2) business days of receipt of Products, complete a basic failure analysis on all
Products returned to Vendor. Upon Blue Coat request, Vendor shall perform next level failure analysis and deliver a written report of such analysis and Vendor’s findings within two (2) business days. 
 19.12 Epidemic Failure. If, during any consecutive ninety (90) day period of the Warranty Period, the percentage of Products that fail
to meet the above Warranty is cumulatively equal to or in excess of the “Product Warranty Failure Percentage” set forth in the associated Product Information Document for the same root cause, then such failure shall be considered an
“Epidemic Failure.” If no Product Warranty Failure Percentage is set forth in a Product Information Document or if no Product Warranty Failure Percentage is specified in a Product Information Document , the default Product Warranty
Failure Percentage shall be three percent (3%). If an Epidemic Failure occurs, then: 
 (a) Vendor shall, at its cost,
provide Support Services (defined below) and/or, if deemed necessary by Blue Coat, at Vendor’s cost, ensure an effective quarantine, containment action, and disposition of suspect materials related to the Epidemic Failure at the Vendor, Blue
Coat and/or Customer locations. 
 (b) Vendor shall notify Blue Coat promptly and provide an initial problem
verification report, including a containment and failure analysis plan per the Blue Coat SCAR Procedure. A complete report, including permanent corrective and preventive action, shall be provided by the Vendor to Blue Coat within seven
(7) calendar days of initial notification; 
 (c) Vendor shall update Blue Coat on a daily basis with the status
and findings of the foregoing analysis and plan and provide such other reasonable information required by Blue Coat in connection therewith; and 
 (d) Blue Coat may immediately terminate this Agreement with respect to the affected Product if Vendor fails to act as required in accordance with preceding subsections. 
 19.13 Warranty Exclusions. Warranties set forth in this Section 19 will not apply to defects or malfunction of the Product arising from
(i) improperly installed, repaired, altered or otherwise modified (other than by Vendor or Vendor’s subcontractors), (ii) misuse, abuse, negligence or accident, (other than by Vendor or Vendor’s subcontractors); (iii) Blue
Coat Materials, if any. 
  

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 19.14 EXCEPT AS EXPRESSLY WARRANTED IN THIS AGREEMENT, VENDOR HEREBY DISCLAIMS ALL WARRANTIES,
COVENANTS AND REPRESENTATIONS EXPRESS, STATUTORY AND IMPLIED, APPLICABLE TO PRODUCTS, DELIVERABLE OR SERVICES, INCLUDING, BUT NOT LIMITED TO, ANY WARRANTY OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE AND ANY WARRANTY THAT ANY PRODUCT IS
DELIVERED FREE OF CLAIMS OF THIRD PARTIES BY WAY OF INFRINGEMENT OR THE LIKE. 
 20. SUPPORT SERVICES. 
 20.1 Support Defined. Vendor shall, at Vendor’s cost, provide technical assistance, functionally equivalent replacement Products,
repair services and failure analysis services (collectively, “Support Services”) on each Product, including discontinued Products, during the Warranty Period. After the expiration of the Warranty Period Vendor shall make available Support
Services for an additional period of five (5) years at commercially reasonable rates. All repaired or replacement Products shall be warranted in accordance with the provisions of Section 19. Except as otherwise expressly provided herein,
Vendor may not discontinue the manufacture or supply of Products or Support Services without Blue Coat’s prior written consent. Vendor shall also, at Blue Coat’s request and at mutually-agreed reasonable cost, provided Vendor personnel at
Blue Coat’s site to provide Product order and other functional liaison services to Blue Coat, as Blue Coat may reasonably require. 
 20.2 Hotline. Vendor shall provide Blue Coat with two telephone numbers, one of which will be answered twenty-four (24) hours a day, seven (7) days a week by Vendor’s highly qualified technical support personnel
(xxx-xxx-xxxx and xxx-xxx-xxxx). Vendor shall also provide Blue Coat with an email address for reporting all issues (xxxx@xxxx.com). When Blue Coat emails or phones in an issue to Vendor, Vendor shall open a support case immediately and respond
within eight (8) business hours with a case tracking ticket number assigned to such issue for tracking purposes. Vendor shall input any such support case into Vendor’s own internal problem reporting systems. Vendor shall use diligent
commercial efforts to resolve all issues as soon as commercially practicable. 
 21. TERM AND TERMINATION 
 21.1 Term. This Agreement shall begin upon the Effective Date and, unless earlier terminated as provided herein, shall continue in effect
for three (3) years (“Initial Term”). The Agreement shall automatically renew for additional one (1) year terms unless and until either party provides written notice of non-renewal at least one (1) year prior to the end of
any such term 
 21.2 Termination of Agreement. 
 (a) Termination for Bankruptcy, Change of Control and Breach. If a party (i) institutes or there is instituted against
it any proceeding under any bankruptcy, protection of rights of creditors or insolvency laws (which proceeding is not dismissed within 120 days), (ii) institutes or there is instituted against it any proceeding for liquidation or winding up
(which proceeding is not dismissed within 120 days), (iii) is continuously unable to pay its debts when due, (iv) makes an assignment for the benefit of creditors, (v) has a receiver appointed with respect to any substantial part of
its assets or business, (vi) ceases to function as a going concern or to conduct its operation in the normal course of business, (vii) except as may be permitted under Section 29.1, transfers all or substantially all of its properties
or merges with or into any other entity or there is otherwise any change in its controlling interest or ownership, without the prior written consent of the other party, or (viii) materially breaches any provision of this Agreement, the other
party may terminate this Agreement upon thirty (30) days written notice (fifteen (15) days for breach of Section 9.4, Payment Terms) thereof unless the material breach is cured within the notice period. 
  

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 (b) Termination For Convenience. After the Initial Term, either party
may terminate this Agreement, or any part thereof, at any time for its sole convenience by giving twelve (12) month advance written notice of termination to the other party. Upon receipt of such notice from Blue Coat, Vendor will, except to the
extent otherwise specified in such notice, immediately stop all work previously authorized. 
 (c) Effect of
Termination. No termination or expiration of this Agreement shall (i) relieve either party from any obligations hereunder which have accrued on or before the effective date of such termination or expiration including without limitation any
obligation to pay to the other party any sum owed pursuant to this Agreement, (ii) affect any rights of either party with respect to any breach of this Agreement, or (iii) cancel any purchase order for the Product placed by Blue Coat and
accepted by Vendor pursuant to this Agreement. Unfilled purchase orders (or portions thereof) that are not cancelled by the non-breaching party will be filled and paid for in accordance with the terms of this Agreement. 
 21.3 Survivability and Obligations Upon Termination. Section 8.5, 9.4, 13.2, 13.3, 17.8, and 18-29 shall survive the termination of
this Agreement. Furthermore, in the event of any termination or expiration of this Agreement (a) Vendor shall deliver all Tooling, Blue Coat Equipment and Blue Coat Consigned Items (excluding the Blue Coat Materials paid for by Vendor)
to Blue Coat within five (5) days after termination (or upon Blue Coat’s demand), (b) each party shall destroy the other party’s Confidential Information (except each party may retain any Confidential Information (i) for
archival purposes, (ii) as necessary to perform the transitional services set forth in Section 22 and (iii) in the case of Blue Coat, as necessary for manufacturing a Product) (c) the parties shall comply with the transition
services provisions set forth in Section 22. 
 22. TRANSITION SERVICES 
 22.1 Transition after Termination. Following any termination or expiration of this Agreement, each party shall assist and cooperate in good
faith with the other party to enable an orderly dissolution of the relationship . Vendor shall provide, at no cost to Blue Coat, technical support and assistance as Blue Coat may reasonably request in connection with the transition of the design
and/or manufacture of Products to a third party, unless the termination is by Vendor for cause. 
 22.2 Right to Manufacture.
Upon the expiration or termination of this Agreement (other than for an uncured breach by Blue Coat) and except as otherwise outlined in a Product Information Document, Vendor hereby grants Blue Coat, a royalty-free, worldwide, nonexclusive,
perpetual, irrevocable and sublicensable right and license to manufacture and have manufactured the Products and to use, reproduce and otherwise exploit the Vendor Property in order to commercialize reproduce, distribute, modify, make, use, sell,
have made or have sold the Products. 
 23. EXPORT. In exporting and importing Products, each party agrees (a) to comply with all export
and import laws, rules, policies, procedures, restrictions and regulations of the Department of Commerce or other United States or foreign agency or authority, and (b) not to export or import, or allow the export or re-export or import of any
goods in violation of any such restrictions, laws or regulations. Each party shall obtain all licenses, permits and approvals required by any government in connection with performing its obligations hereunder; provided that in doing so each party
shall at all times fully protect the Confidential Information and proprietary rights of the other party. Blue Coat shall provide the export classification for each Product to Vendor. Each party will indemnify and hold the other party harmless for
any breach of this Section 23 by such party. 
 24. INDEPENDENT CONTRACTOR. Each party shall be deemed to be an independent contractor to
the other party, and not its agent, joint venturer, partner or employee. Neither party shall have any authority to make any statements, representations or commitments of any kind, or to take any action, which shall be binding on the other party.

  

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 25. LIMITATION OF LIABIILTY. EXCEPT FOR A CLAIM FOR DAMAGES TO A THIRD PARTY FINALLY AWARDED BY A COURT
OF COMPETENT JURISDICTION PURSUANT TO SECTION 27 (INDEMNIFICATION), OR A BREACH OF SECTION 26 (CONFIDENTIALITY), OR FOR LIABILITY ARISING FROM THE GROSS NEGLIGENCE OR INTENTIONAL MISCONDUCT OF A PARTY, IN NO EVENT WILL EITHER PARTY BE LIABLE TO THE
OTHER PARTY OR TO ANY OTHER PERSON OR ENTITY FOR ANY SPECIAL, INDIRECT, INCIDENTAL OR CONSEQUENTIAL DAMAGES RELATED TO THIS AGREEMENT WHETHER UNDER CONTRACT, TORT, STRICT LIABILITY, NEGLIGENCE, OR ANY OTHER LEGAL OR EQUITABLE CLAIM OR THEORY, EVEN
IF ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. 
 EXCEPT FOR A CLAIM (AND ANY FEES RELATED TO A CLAIM) PURSUANT TO SECTION 27 (INDEMNIFICATION)
(“INDEMNIFICATION EXCEPTION”) OR A BREACH OF SECTION 26 (CONFIDENTIALITY), IN NO EVENT WILL EITHER PARTY’S LIABILITY FOR ANY CLAIM ARISING OUT OF THIS AGREEMENT EXCEED THREE (3) MILLION DOLLARS. NOTWITHSTANDING THE FOREGOING, THE
INDEMNIFICATION EXCEPTION SHALL ONLY APPLY TO A CLAIM OF INDEMNIFICATION AGAINST VENDOR TO THE EXTENT THE DAMAGES ARISE OUT OF OR RESULT FROM THE MANUFACTURING PROCESS. 
 26. CONFIDENTIALITY 
 26.1 Proprietary Information. Prior to and during the performance
of this Agreement, the parties may disclose or furnish to each other proprietary marketing, technical or business information either verbally or in tangible form (the “Confidential Information”); all or any of which have been identified or
marked at the time of disclosure as “proprietary” or “confidential” by the disclosing party and, if not in tangible form, reduced to writing marked in a manner to indicate its confidential nature and furnished to the receiving
party within ninety (90) days of the initial disclosure. Notwithstanding the above, the information contained in the Product Design Document(s), the information contained in the Product Information Document(s), any Product Information, and
information concerning Customers shall be deemed to be the Confidential Information of Blue Coat regardless of being marked as such. Confidential Information of the disclosing party shall be held in confidence by the receiving party and not directly
or indirectly disclosed, copied or used by the receiving party (except as necessary to perform under this Agreement). Each party agrees that, except as may be required by law, including the rules and regulations of the United States Securities and
Exchange Commission, the terms and existence of this Agreement are confidential and neither party shall disclose such information. Notwithstanding the foregoing, each party may, without further consent of the other party, disclose the contents of
this Agreement to its shareholders, potential acquirors, accountants, professional and financial advisors, insurers and other persons necessary for the functioning of such party’s business operations and who are bound by terms and conditions of
confidentiality no less restrictive than the terms contained in this Agreement. 
 26.2 Non-Confidential Information.
Confidential Information shall not include information that (a) is already known to the receiving party without any obligation of confidentiality; (b) has entered the public domain through no action or inaction of the receiving party;
(c) is generally available to the public; (d) was disclosed to the receiving party by a third party without a duty of confidentiality; (e) independently developed by the receiving party without access to the Confidential Information
or (f) is required to be disclosed in accordance with a judicial or other governmental order, provided that, the receiving party, subject to what is permitted under the applicable law, either (i) gives the disclosing party reasonable
notice prior to such disclosure to allow the disclosing party a reasonable opportunity to seek a protective order or equivalent, or (ii) obtains a written assurance from the competent judicial or governmental entity that it will afford
Confidential Information the highest level of protection afforded under the applicable law or regulation. 
  

 19 

 Design & Manufacturing Services Agreement 
  

 26.3 Injunction. Each party acknowledges that the Confidential Information of the
disclosing party constitutes valuable trade secrets of the disclosing party and that the unauthorized disclosure or use of such Confidential Information by the receiving party will cause irreparable harm, for which no remedies of law will be
adequate. Accordingly, the parties agree that the disclosing party shall be entitled to injunctive relief against the receiving party in the event that the receiving party breaches the confidentiality obligations set forth in this Section 26.

 26.4 Insider Trading. Each party acknowledges that it is aware that the other party is a publicly-traded company and that
its Confidential Information may constitute material non-public information under U.S. or Taiwan securities laws and regulations. As such, each party shall ensure that its agents and employees are contractually prohibited from transacting in
the other party’s securities based on such Confidential Information or from communicating such Confidential Information to others in connection with the trading of such securities. 
 26.5 Data Security. The receiving party shall implement safeguards and procedures to prevent unauthorized access to, and the destruction,
loss, misuse or improper alteration of, all Confidential Information of the disclosing party. If the receiving party becomes aware of any unauthorized access to the disclosing party’s Confidential Information, it shall report immediately in
detail such incident to the disclosing party and take appropriate remedial actions. Vendor will comply with Blue Coat’s written requirements for vendors and offsite development companies, as Vendor is notified of such requirements which may be
revised from time to time. In addition to such requirements, the receiving party will also adhere to data security requirements and procedures, that provide for, without limitation: (i) the highest industry standard security systems, computers
and technologies, including firewalls and encryption; (ii) physical security procedures, including regular monitoring of all work areas; (iii) background checks on its personnel; (iv) restriction of use and copying of the disclosing
party’s Confidential Information on a “need-to-know” basis and only at authorized locations; (v) regular monitoring of the transport and storage of the disclosing party’s Confidential Information; (vi) regular
monitoring of password procedures; and (vii) regular and random monitoring of Suppliers and other employees providing Design Services or working on Blue Coat Products. 
 27. INDEMNIFICATION 
 27.1 Blue Coat Indemnification of Vendor. Blue Coat shall defend
Vendor and its employees, directors, officers, subsidiaries, successors and assigns (each a “Vendor Party”) from and against third party claims asserted against any Vendor Party to the extent such claims assert that (a) the Blue Coat
Requirements Document (or any process, method, design, product or component that directly and necessarily results from compliance with the Blue Coat Requirements Document); (b) Blue Coat Consigned Items; (c) Marks; or
(d) modifications made to the Product Design Document as instructed by Blue Coat, infringes any patent, trademark, mask work, copyright, trade secret or other intellectual property right of a third party; provided (i) Vendor gives prompt
written notice of the claim; and (ii) Vendor reasonably cooperates in the defense or settlement of the claim. Vendor may participate in the defense of the claim, with its own counsel at its own expense. Blue Coat shall pay any final judgment on
the claim and will pay any settlement costs to which it agrees. Blue Coat shall not be responsible for any settlement costs to which it does not agree in writing. 
 27.2 Vendor Indemnification of Blue Coat. Vendor shall defend Blue Coat and its employees, directors, officers, subsidiaries, successors and assigns (each a “Blue Coat Party”) from and against
third party claims asserted against any Blue Coat Party to the extent such claims (a) assert that the design or manufacturing process used by Vendor in the manufacture of Products hereunder or the design of a Product or any method, process
outlined in or component of a Product Information Document hereunder infringes any patent, trademark, mask work copyright, trade secret or other intellectual property right of a third party; or (b) are based on the gross negligence or willful
misconduct of Vendor or its agents; provided that Blue Coat shall be required to (i) give Vendor prompt written notice of the Claim and (ii) Blue Coat reasonably cooperates in the defense or settlement of the claim. Vendor shall pay any
final judgment on the claim and will pay any settlement costs to which it agrees. Vendor shall not be responsible for any settlement costs to which it does not agree in writing. This Section does not apply to the extent the claim is specific to the
(A) Blue Coat Consigned Items, or other materials procured from Blue Coat designated suppliers or otherwise dictated by Blue Coat; (B) unauthorized 

  

 20 

 Design & Manufacturing Services Agreement 
  

 
modifications or other unauthorized alterations made to the Product after delivery (by a party other than Vendor); (C) modifications or other
alterations made to the Product Design Document as instructed by Blue Coat; (D) process, method, design, product or component that directly and necessarily results from compliance with the Blue Coat Requirements Document; or (E) Marks.

 27.3 Correction. If Vendor reasonably believes that a certain manufacturing process or method used by Vendor in the
manufacture of a Product or the manufacture or sale or use of a Product may be enjoined, Vendor shall use all diligent commercial efforts to either promptly (a) procure for Blue Coat the right to continue to use the same or (b) replace or
modify the same to make it non-infringing. 
 28. LIENS AND SECURITY INTERESTS. During the term of this Agreement, Vendor warrants that Vendor
has not and will not, directly or indirectly create, incur or permit to exist any lien, encumbrances or security interest on or with respect to the Components or Products or any portion thereof. 
 29. MISCELLANEOUS. 
 29.1
Assignability. Neither party shall transfer or assign any of its rights or obligations hereunder without the prior written consent of the other party and any transfer or obligations hereunder without the prior written consent of the both
parties shall be void and of no effect. Notwithstanding the foregoing, Blue Coat may assign this Agreement without consent to an Affiliate or to an acquirer of all or substantially all of Blue Coat’s equity, assets or business provided that
such Affiliate or acquirer is not the competitor of Vendor. 
 29.2 Insurance. Vendor shall maintain (at its own expense) all
necessary insurance, including but not limited to, workmen’s compensation, disability, and unemployment insurance, as well as public liability, product liability, property damage, and automobile liability insurance against any and all losses,
claims, demands, proceedings, damages, costs, charges and expenses for injuries or damage to any person or property arising out of or in connection with this Agreement that are the result of the fault or negligence of Vendor. 
 29.3 Binding Nature; No Third Party Beneficiary. The terms and provisions of this Agreement shall be binding upon and inure to the benefit
of the parties, and their respective successors and permitted assigns, and is made solely and specifically for their benefit. No other person shall have any right, interest or claim hereunder or be entitled to any benefits under or on account of
this Agreement as a third-party beneficiary or otherwise. 
 29.4 Waiver. Any waiver of the terms hereof shall be effective
only in the specific instance and for the specific purpose given, and only if such waiver is express and in writing by the parties hereto. 
 29.5 Governing Law and Venue. This Agreement shall in all respects be governed by and construed in accordance with the laws of the State of California, without regard to conflicts of laws provisions and without regard to the
United Nations Convention on Contracts for the International Sale of Goods. The sole and exclusive venue and jurisdiction for all disputes arising from this Agreement shall be the state and Federal courts located in Santa Clara, California, and each
party hereby consents to such jurisdiction and venue. 
 29.6 Entire Agreement. This Agreement supersedes all proposals, oral
or written, all negotiations, conversations, or discussions between or among parties relating to the subject matter of this Agreement and all past dealing or industry custom. 
  

 21 

 Design & Manufacturing Services Agreement 
  

 29.7 Notices. Any notices required or permitted to be given hereunder shall be given in
writing and shall be delivered to the address written above (a) in person, (b) by certified mail, postage prepaid, return receipt requested, or (c) by a commercial overnight courier that guarantees next day delivery and provides a
receipt. Notices to Blue Coat must be sent to the attention of the General Counsel. Notices to Vendor must be sent with copy to: 
 Legal & IP Center 
 Inventec Corporation 
 66 Hou-Kang Street, Shih-Lin District, Taipei 111, Taiwan, R.O.C. 
 Fax: 886-2-2881-6706 
 Email: chang.nancynw@inventec.com 
 Attn: Nancy Chang 
 29.8 Successors and Assigns. The provisions of this Agreement shall inure to the benefit of, and
be binding upon, Vendor and its successors and assigns and Blue Coat and Blue Coat’s successors and assigns. 
 29.9
Amendments. Any provision hereof may be amended and the observance of any provision of this Agreement may be waived (either generally or in any particular instance and either retroactively or prospectively) only with the written consent of
Blue Coat and Vendor. However, it is the intention of the parties that this Agreement be controlling over additional or different terms of any invoices, confirmations or similar documents (other than additional terms (e.g. quantities, proposed ship
dates, etc.) expressly contemplated herein as to be supplied in such documents) even if accepted in writing by both parties. 
 29.10
Counterparts. This Agreement may be executed in one (1) or more counterparts. 
 29.11 Force Majeure. Neither party
shall be liable for any delay or failure in performance due to: acts of God, earthquake, flood, riots, fire, epidemics, war, strike and other labor difficulties, embargoes, acts of civil or military authorities or terrorism (a “Force Majeure
Event”) unless caused by that party’s negligence or willful misconduct. Each party shall immediately notify the other party of the occurrence of Force Majeure Event affecting such party and shall use all reasonable efforts to recommence
performance as soon as possible. If a Force Majeure Event occurs, the party not affected by the Force Majeure Event may suspend its performance, in whole or in part, for the duration of the Force Majeure Event, and, if the Force Majeure Event
prevents the other party from performing all or any substantial part of its obligations for a period greater than thirty (30) consecutive days, terminate the Agreement. If Blue Coat is the party affected by the Force Majeure Event, Blue Coat
shall be liable for any agreed upon cancellation charges and both parties shall be responsible for termination obligations as provided for in this Agreement. 
  

 22 

 IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement, all as of the day and year
first above written. 
  

			
	Inventec Enterprise System Corporation
		
	By:	 	/s/ Paul Wang
	Title:	 	President, Enterprise Business Group
	
	Blue Coat Systems, Inc.
		
	By:	 	/s/ David de Simone
	Title:	 	SVP Corporate Operations

  

 SIGNATURE PAGE TO MANUFACTURING SERVICES AGREEMENT 

 EXHIBIT A 
 PRODUCT DESIGN DOCUMENT 

 The following Product Information Document shall be considered a part of the Design &
Manufacturing Services Agreement entered into by Blue Coat Systems, Inc. (“Blue Coat”) and Inventec Enterprise System Corporation (“Vendor”) on             , 2007
(the “Agreement”). All terms not defined herein shall have the meaning ascribed to them in the Agreement. 
 Effective Date: 
 Product Description: 
 Bill of Materials/Pricing: 
 AVL: 
 Unique Components: 
 Component Lead Time: 
 Product Specifications: 
 Tooling: 
 Blue Coat Equipment: 
 Test Plan: 
 Project Managers: 
 Blue Coat: 
 Vendor: 

Ownership: 
 Additional Requirements or Obligations:

 Accepted and Agreed to by: 
  

									
	BLUE COAT SYSTEMS, INC.	 		 	INVENTEC ENTERPRISE SYSTEM CORPORATION
					
	By:	 	 	 		 	By:	 	 
	Name:	 	 	 		 	Name:	 	 
	Title:	 	 	 		 	Title:	 	 
	Date:	 	 	 		 	Date:	 	 

 EXHIBIT B 
 PRODUCT INFORMATION DOCUMENT 
 The following Product Information Document shall be considered a part
of the Design & Manufacturing Services Agreement entered into by Blue Coat Systems, Inc. (“Blue Coat”) and Inventec Enterprise System Corporation (“Vendor”) on
            , 2008 (the “Agreement”). All terms not defined herein shall have the meaning ascribed to them in the Agreement. The Product Design Document, shall be
incorporated by reference to this Product Information Document and sets forth the Product Specifications and other details associated with the Product. 
 Effective Date: 
 Product Name: 
 Product Lead Time:

 Vendor Manufacturing Facility: 
 P.D.D. Information:

 Contact Information: 
 Escalation Path: 
 Product Warranty Failure Percentage: 
 Out of Warranty Repair costs:

 [insert Spreadsheet #1 – Finished Goods Information] 
 This Spreadsheet #1 would be attached to this Product Information Document and contain the following information: 
  

	 	•	 	 Part Number 

  

	 	•	 	 Total Product Cost 

 [insert Spreadsheet #2
– Component Information] 
 This Spreadsheet #2 would be attached to this Product Information Document and contain the following information:

  

	 	•	 	 Part Number 

  

	 	•	 	 Unit Price 

  

	 	•	 	 Manufacturer Name 

  

	 	•	 	 Product Manufacturing Time 

  

	 	•	 	 Product Lead Time 

  

	 	•	 	 Inventory Liability 

  

	 	•	 	 MOQ (insert the quantity if applicable) 

  

	 	•	 	 NCNR (insert an ‘x’ if applicable) 

  

	 	•	 	 Min/Max (insert the quantity if applicable) 

  

	 	•	 	 Custom vs. Standard 

  

	 	•	 	 Insert a ‘C’ if the component is a Custom Component 

  

	 	•	 	 Insert a ‘S’ if the component is Standard 

	 	•	 	 AVL Status 

  

	 	•	 	 Insert ‘A’ if classified as an ‘A’ part 

  

	 	•	 	 Insert ‘B’ if classified as a ‘B’ part 

  

	 	•	 	 All others not noted are assumed as ‘C’ parts 

 Escalation of Issues: 
 Severity Definitions: 
 Severity 1 Issues: Immediate Customer Impact (BC Customer) 
 Severity 2 Issues: Potential/Pending Customer Impact (BC Customer)

 Vendor will respond to all issue raised by Blue Coat or that Vendor becomes aware (“Issues”) of in accordance with the Issue
Resolution Table set forth below. All response times are measured from the time Vendor receives an Issue notice (by email or phone) or Vendor has otherwise detected the Issue. The level of effort Vendor must apply to resolving Issues is continuous
and best commercial efforts. The severity level of the Issues reported by Blue Coat shall be determined by Blue Coat. 
 Issue Resolution Table

  

							
	 Severity Level
	  	 Response
Time
	  	 Fix Time and Resolution
	  	 Feedback            to    
Blue Coat

	 Severity 1
 Issue
	  	Fifteen (15) minutes	  	Vendor will work 24 x 7 to provide a resolution.	  	Daily
				
	 Severity 2
 Issue
	  	One (1) hour	  	 Vendor will work during normal business hours
 to provide
a resolution.
	  	Weekly        or     better

 During the resolution of Issues, Vendor will escalate unresolved Issues in accordance with the
Escalation Table set forth below. Escalation shall, at a minimum, take the form of electronic communication, on which Blue Coat is a copied recipient. If a Issue has not been resolved within five (5) days then, at Blue Coat’s request,
Vendor will assign a dedicated resource to resolve the Issue and will communicate to Blue Coat the dedicated resource contact information. 
 Escalation
Table 
  

					
	 Escalation Level
	  	 Elapsed Time
	  	 Vendor Escalation Contact

	1A	  	Initial identification	  	[insert title]
	1B	  	4 hours	  	[insert title]
	1C	  	24 hours	  	[insert title]
	1D	  	48 hours	  	[insert title]
	1E	  	3 days	  	[insert title]
	1F	  	5 days	  	[insert title]
	  
 Contacts:
  
 Vendor shall designate a primary point of contact for the areas specified below.
Vendor may change its designated point of contact at any time upon written notice to Blue Coat.
  

	 Department
	  	 Contact Name
	  	 Contact Information (phone and email)

		  		  	
		  		  	
		  		  	
		  		  	

 Blue Coat shall designate a primary point of contact for the areas specified below. Vendor shall only
contact the specified person assigned to the area designated below. Blue Coat may change its designated point of contact at any time upon written notice to Vendor. 
  

					
	 Department
	  	 Contact Name
	  	 Contact Information (phone and email)

		  		  	
		  		  	
		  		  	
		  		  	

 Test Specifications: 
 Product Manufacturing Time: 
 Quality Control Standards: 
 Additional Requirements or Obligations: 
 Accepted and Agreed to by: 
  

									
	BLUE COAT SYSTEMS, INC.	 		 	INVENTEC ENTERPRISE SYSTEM CORPORATION
					
	By:	 	 	 		 	By:	 	 
	Name:	 	 	 		 	Name:	 	 
	Title:	 	 	 		 	Title:	 	 
	Date:	 	 	 		 	Date:	 	 

 EXHIBIT C 
 STATEMENT OF WORK 
 Deliverables: 
 Product specifications 
 Test plan: 
 Schedule: 
 Pricing: 
 NRE Fees: 
 Blue Coat Equipment Pricing: 
 Tooling: 
 Accepted and Agreed to by: 
  

									
	BLUE COAT SYSTEMS, INC.	 		 	INVENTEC ENTERPRISE SYSTEM CORPORATION
					
	By:	 	 	 		 	By:	 	 
	Name:	 	 	 		 	Name:	 	 
	Title:	 	 	 		 	Title:	 	 
	Date:	 	 	 		 	Date:Amended & Restated Supply Agrmnt - btwn Synnex Corp.

 Exhibit 10.43 
 AMENDED AND RESTATED SUPPLY AGREEMENT 
 This Amended and Restated Supply Agreement
(“Agreement”) is entered into as of this 8th day of September 2005 (“Effective Date”) between SYNNEX Corporation (“Synnex”), a Delaware corporation having its principal place of business at 44201 Nobel Drive, Fremont,
CA 94538, and Blue Coat Systems, Inc. (“Blue Coat”) a Delaware corporation, having its principal place of business at 420 North Mary Avenue, Sunnyvale, CA 94085. 
 RECITALS 
 WHEREAS, the parties previously entered into a Supply Agreement on
December 29, 2000 (“Original Supply Agreement”); 
 WHEREAS, the parties intend to amend and restate the Original
Supply Agreement on the terms set forth in this Agreement; 
 NOW, THEREFORE, in consideration of the mutual promises contained
herein, the parties agree as follows: 
 AGREEMENT 
 1. DEFINITIONS 
 1.1 “Base Unit” shall mean the proprietary system designed by Blue
Coat and manufactured by MiTAC International Corporation. 
 1.2 “Common Components” are materials that are
distributed by Synnex in some manner (as specified in a Product Information Document). 
 1.3 “Custom Components”
shall mean materials specific and unique to the Products that cannot be returned to suppliers or sold to third parties and which are not used by Synnex in the ordinary course of business (as specified in a Product Information Document). 

 1.4 “Components” shall mean the complete list of components or bill of materials that are used to manufacture a Product
as set forth in a Product Information Document. 
 1.5 “Component Lead Time” shall mean the lead time associated with
a particular Component (as specified in a Product Information Document). 
 1.6 “Excess Buffer Stock” shall mean
Buffer Stock that has been in inventory at Synnex for over three (3) months provided that such Buffer Stock (a) could not previously be shipped to a customer during the three month period and (b) was not manufactured by Synnex outside
of the agreed upon Buffer Stock needs. 
  

 1 

 1.7 “Excess Components” shall mean a Component that has been in inventory at Synnex for
over six (6) months provided that such Component (a) could not previously be utilized in the manufacture of a Product during such six (6) month period and (b) was not purchased by Synnex outside of the Total Lead Time necessary
to meet the Forecasts and Buffer Stock requirements. 
 1.8 “Obsolete Components” means Components that will be discarded or
unused due to such Engineering Change Order (as defined in Section 2.3) provided that such Component was not purchased by Synnex outside of the Total Lead Time necessary to meet the Forecasts and Buffer Stock requirements. 
 1.9 “Products” means the product set forth in a Product Information Document. 
 1.10 “Product Information Document” means an exhibit to this Agreement that contains information and details related to the manufacture,
sale and cost of a Product. 
 1.11 “Product Manufacturing Time” means the pre-determined amount of lead time between
receiving a purchase order for a Product and shipping the Product (as defined in the Product Information Document). 
 1.12
“Purchased Components” means materials that are neither Custom Components nor Common Components (as specified in the Product Information Document). 
 1.13 “Resource Costs” means the cost of Product other than Component Costs. Resource Costs shall include, but not be limited to, labor costs, facilities costs and other overhead costs. 
 1.14 “Sensitive Components” means a Component where the cost tends to fluctuate significantly in very short period of time. Components
classified as Sensitive Components are listed in the applicable Product Information Document. 
 1.15 “Software” means the
software portion of the Product that is embedded in the hardware of the Product, the user documentations, packaging and any enhancements, modifications, updates, bug fixes, releases, patents, patent rights, copyrights, trade secrets, know how and
other intellectual property related thereto. 
 1.16 “Specifications” shall mean the technical and functional specifications
for a Product as set forth in a Product Information Document and as modified from time to time by written agreement of Blue Coat and Synnex. 
  

 2 

 1.17 “Total Product Cost” shall mean Synnex’s costs to acquire all Components for a
Product, all Resource Costs related to the manufacture and shipment of a Product and the profit to Synnex applicable to a Product (all as specified in a Product Information Document). 
 1.18 “Total Lead Time” means, for a particular Component, the period of time that includes both the Component Lead Time and the Product
Manufacturing Time. 
 1.19 “Variable Costs” shall mean the cost of the Custom Components, the Purchased Components and the
Resource Costs. 
 2. MANUFACTURE AND SALE OF PRODUCTS 
 2.1 Product Information Document. For each Product to be manufactured and sold by Synnex, Blue Coat and Synnex shall execute a Product Information Document in the form set forth in Exhibit A. At a
minimum, the Product Information Document shall include, without limitation, the name and description of the Product, Specifications, Quality Control Standards. Product Manufacturing Time, Components, Components Costs, Component Lead Time,
Engineering Charges and Project Managers. 
 2.2 Products. Subject to the terms and conditions of this Agreement, Synnex shall
manufacture and sell to Blue Coat the Products set forth on each Product Information Document. Products shall be manufactured by Synnex according to the Product Specifications. 
 2.3 Engineering Change Orders. Blue Coat may change the Specifications for a Product at any time. In the event that Blue Coat makes such changes,
Blue Coat shall issue an engineering change order in writing to Synnex specifying the change in design, manufacturing process or installation and engineering specifications (“Engineering Change Order”). Within five (5) days of receipt
of an Engineering Change Order, Synnex shall provide a written acknowledgement (“Acknowledgement”), including a proposed schedule to implement such changes or additions, an estimate of the cost to implement such changes or additions and
the costs associated with the Obsolete Components. Blue Coat shall review such proposed schedule and estimates and either accept or reject the Acknowledgement. If Blue Coat accepts the Acknowledgement, Blue Coat shall pay Synnex the amounts
specified in the Acknowledgement. Notwithstanding the above, Blue Coat shall not be responsible for reimbursing Synnex for Obsolete Components that were purchased outside of the Total Lead Time necessary to meet the Forecasts (defined below).

 2.4 Project Manager. Each party shall appoint project managers (“Project Managers”) associated with Products. The names,
addresses, telephone, fax numbers and email address of the Project Managers are set forth in the Product Information Document. The Project Managers shall act as liaisons between the parties with respect to their 

  

 3 

 
respective performances as it relates to their particular Product and shall provide the parties from time to time with the names and telephone number of
additional specific contact persons when such direct contact is preferable. In the event that either party appoints a new Project Manager, such party shall promptly notify the other. 
 2.5 Subcontractors. The parties acknowledge that the work and manufacturing obligations set forth in this Agreement must be performed by Synnex
except where third parties selected by Synnex are approved in advance and in writing by Blue Coat (“Subcontractors”). If any part of the performance under this Agreement is dependent on the performance of Subcontractors, Synnex shall
inspect and promptly report to Blue Coat any material defect that renders such work unsuitable for Synnex’s proper performance. Synnex’s silence shall constitute approval of such Subcontractor performance as fit, proper and suitable for
Synnex’s performance under this Agreement, and, in any case, Synnex shall be responsible for the activities of Subcontractors. Blue Coat will not be responsible for payment or other obligations to any Subcontractors. If for any reason Synnex
fails to make prompt payment to a Subcontractor and as a result, the production of the Product could be halted due to unavailability of components from Subcontractor, then Synnex shall immediately notify Blue Coat and the parties shall work in good
faith to resolve the issue. 
 3. OWNERSHIP 
 3.1 Tools As between the parties, Blue Coat shall own all tools it provides to Synnex (“Tools”). 
 3.2
Inventions. As between the parties, Blue Coat exclusively shall have all right, title and interest (including all patent rights, copyrights, trade secret rights, mask work rights and other rights throughout the world (collectively,
“Intellectual Property Rights”)) in any and all information relating to Product design, construction, assembly, development or architecture, all inventions, ideas, suggestions regarding Product improvements or other information made or
conceived or reduced to practice by Synnex (or the parties jointly) in the course of performing the services under this Agreement (“Inventions”). Synnex will have no right or license in the foregoing, except as expressly provided
herein. 
 3.3 Assignment. The parties hereby make any assignments necessary to accomplish the foregoing ownership provisions.
In interpreting such ownership provisions anything made or conceived or reduced to practice by an employee or contractor of a party in the course of performance under this Agreement will be deemed so made or conceived or reduced to practice by that
party; each party has and will have appropriate agreements with all such employees and contractors necessary to fully effect the provisions of this Section. 
 3.4 Perfection. A party being assigned any proprietary right under this Agreement will have the exclusive right to, and, at such party’s expense, the assigning 

  

 4 

 
party agrees to assist such party in every proper way (including, without limitation, becoming a nominal party) to, evidence, record and perfect the
assignment and to apply for and obtain recordation of and from time to time enforce, maintain, and defend such proprietary rights. A party will execute all documents the other may reasonably request for such purposes, 
 3.5 Synnex Intellectual Property. Synnex shall retain all ownership and rights, including all Intellectual Property Rights, in and to it’s
proprietary electronics and manufacturing techniques except to the extent such rights were invented pursuant to Synnex’s performance under this Agreement (“Synnex Pre-Existing Rights”). Any Synnex Pre-Existing Rights that were created
prior to the Effective Date but are used or necessary to the manufacture and fulfillment of the Products, Synnex hereby provides Blue Coat with a non-exclusive, irrevocable, perpetual license to such Synnex Pre-Existing Rights. 
 4. PRICING AND PAYMENT TERMS 
 4.1 Prices. The
initial price for a Product shall be set forth in the Product Information Document. 
 4.2 Adjustment to Variable Costs. On a
quarterly basis the parties will review the Total Product Cost of the Products. Within the first seven (7) business days of a calendar quarter, Synnex shall provide Blue Coat with written notice of the positive and negative price variances that
have occurred and the proposed changes in Variable Costs to be implemented in the next Blue Coat fiscal quarter (“New Costs”). Such New Costs shall be in effect for one quarter (such quarter shall be measured using Blue Coat’s fiscal
quarter), provided that the cost of the Sensitive Components, does not change significantly (greater than five percent (5%) of the total Sensitive Component price) during the one quarter period. If the cost of Sensitive Components changes
significantly during the one quarter period, then, upon mutual agreement by Blue Coat and Synnex, the Total Product Cost of the Products can be adjusted during the one quarter period. Purchase orders placed prior to the proposed effective date and
not canceled by Blue Coat shall not be affected by the New Costs. 
 4.3 Total Product Cost Notification. At least five
(5) business days prior to the beginning of each Blue Coat fiscal quarter, Synnex shall notify Blue Coat of the Total Product Cost (based on using the New Costs amounts) and provide Blue Coat with a breakdown of the costs and profit used to
calculate such Total Product Cost. 
 4.4 Engineering Charge and Special Tooling. Blue Coat shall pay to Synnex a non-recurring
Engineering Charge (as specified in the Product Information Document) to reimburse Synnex for the out-of-pocket cost of the special equipment and tooling associated with the manufacture of the Product and any other special equipment or tooling that
the parties subsequently determine in writing (and add to the Product Information Document) (collectively, the “Special Tooling”). For purposes of this 

  

 5 

 
Agreement, Synnex represents and warrants that the Special Tooling shall not be commercially used on behalf of any party other than Blue Coat. Synnex shall,
upon payment of the Engineering Charge by Blue Coat, transfer all right, title and interest to the Special Tooling to Blue Coat, free and clear of any liens or other encumbrances. Upon any termination or expiration of this Agreement, Synnex shall
assist and cooperate in good faith with the transfer by Blue Coat of the Special Tooling to other locations designated by Blue Coat. During the term of this Agreement, Blue Coat shall reimburse Synnex for expenses or costs related to the Special
Tooling (including repairs) that are previously approved by Blue Coat. 
 4.5 Other Costs. Blue Coat shall also pay any pre-approved
(in writing by Blue Coat) additional costs and expenses that are not specified in this Agreement. Any such costs or expenses shall be paid within thirty (30) days after receipt of invoice. 
 4.6 Cost Reduction. On a quarterly basis, Synnex shall use commercially reasonable efforts to minimize the cost in the Component Costs and
Resource Costs. Synnex shall provide and Blue Coat will review all Component Costs and Resource Costs on a quarterly basis. Costs to be reviewed include, but are not limited to, time studies for production and costs related to repairs, testing,
kitting, inventory management, shipping and quality inspections. Costing analysis will include generic salary information for relevant personnel including staffing quantities and volumes. The parties will work together to develop a process for
standardizing this quarterly review. Once this process is developed it shall be memorialized and incorporated into this Agreement as Exhibit B. Synnex shall use commercially reasonable efforts to work on achieving cost savings on both
materials and processes, and such savings shall be reflected in a reduction of the Total Product Cost. In addition, Synnex shall use commercially reasonable efforts to institute any cost reduction proposals reasonably suggested by Blue Coat, and to
reduce the purchase price of the Products to Blue Coat by an amount equal to the per unit saving realized therefrom. 
 4.7 Taxes.
Prices stated in the Product Information Document are in U.S. dollars and include any withholding taxes and the like. Synnex agrees that amounts paid pursuant to this Agreement are not subject to sales and use tax. Blue Coat agrees to provide Synnex
with satisfactory documentation (including but not limited to resale exemption or other certificates) supporting such status. All other items of tax based in whole or in part on the income of a party shall be the sole responsibility of such party.

 4.8 Payment Terms. Synnex shall invoice Blue Coat upon shipment of the Product. All undisputed payments due hereunder shall be paid
in U.S. dollars not later than thirty (30) days following the invoice date which shall be no earlier than the ship date. In the event that an invoice is not paid within forty (40) days following the invoice date (provided Blue Coat has not
paid any invoices late in the previous twelve, a late charge shall be charged to Blue Coat of one percent (1%) per month of the delinquent undisputed invoice amount. If Blue Coat’s gross revenue in any one quarter drops more than 25% over
the previous quarter, then Synnex reserves the right to alter or change any and all credit terms upon five (5) business days prior written notice to Blue Coat. 
  

 6 

 4.9 Favorable Terms. Synnex warrants that during the term of this Agreement the terms and
conditions of this Agreement, including discounts, prices and shipping, are no less favorable than the terms, conditions, discounts and prices given to any third party that purchases or licenses products or services from Synnex in similar quantities
and under similar conditions. Blue Coat reserves the right to audit Synnex’s books and records, during the term of this Agreement and for three (3) years after its termination to verify Synnex’s compliance with this Section. The audit
will not be done more than once in any calendar year and shall be done through an independent third party. Such third party shall execute a non-disclosure agreement prior to performing the audit. The cost of the audit shall be borne by Blue Coat,
unless the third party determines that Synnex is not in compliance with this Section in which event Synnex shall pay for the audit. If the third party determines that Synnex has not charged Blue Coat the correct price, Synnex shall pay to Blue Coat
the difference within thirty (30) days after the third party issues its report. 
 4.10 Inventory Count. Within the first five
(5) days of each Blue Coat calendar month, Synnex shall notify Blue Coat of the total number of Products in inventory, the total number of Components in inventory (in a costed report), how long each Component has been in inventory, the
Forecasts under which each Component was purchased, the date the Component was purchased and any open purchase orders for Components that have not been received. 
 5. PURCHASE ORDERS 
 5.1 Purchase Orders. Blue Coat’s purchase orders for Products shall include the following:

  

	 	(a)	Identification of Products ordered by Blue Coat part number and descriptions; 

  

	 	(b)	Quantity to be purchased; 

  

	 	(c)	Price of Products ordered; 

  

	 	(d)	Required shipment date; and 

  

	 	(e)	Shipping information (including location). 

 5.2
Controlling Terms. All purchase orders and invoices under this Agreement shall be subject only to the terms and conditions hereof. In the event the terms of any such purchase order, confirmation or similar document conflicts with or are 

  

 7 

 
additional to the terms of this Agreement, the terms of this Agreement alone shall apply and shall govern regardless of execution of such document by one or
both parties, except that the parties may agree to negotiate non-preprinted terms which shall be effective only if executed by both parties. Any other terms and conditions (from either party) shall not apply to this Agreement or the purchase orders.

 5.3 Purchase Order Process. All purchase orders received by Synnex for Products shall be accepted or rejected by Synnex within one
(1) business day upon their receipt, if the purchase order is in compliance with the terms of this Agreement. Any purchase order no rejected within the time period will be deemed accepted. Synnex may only reject a purchase order for good cause.
If Synnex has any reason to believe it will not meet the required shipment date, it shall use reasonable efforts to notify Blue Coat within four (4) business hours, but in no event shall such notice be more than two (2) business days of
the receipt of the purchase order. Blue Coat shall have the ability to track the status of any purchase order online using the web site located at wss.synnex.com. Synnex shall provide Blue Coat with an electronic shipping notification within two
(2) hours after the Product has shipped (however, Synnex shall use diligent efforts to improve this response time to one (1) hour). Invoicing will be daily with all relevant and accurate tracking numbers and freight charges included with
the invoice. 
 5.4 Forecasts. Before the beginning of each month, Blue Coat shall provide non-binding, rolling twelve (12) month
forecasts setting forth Blue Coat’s demand for Product. Before the beginning of each month, Blue Coat shall also provide Synnex with binding three (3) month forecast (“Forecast”). 
 5.5 Cancellation of Purchase Orders. Provided such notice is within forty-eight (48) hours after submission of a purchase order, Blue Coat
may cancel or modify such purchase order without the approval of Synnex. Notwithstanding the foregoing, in the event that Blue Coat cancels some quantity of units of Products ordered pursuant to a purchase order or Forecast, Synnex, upon receipt of
such written notice of such cancellation, shall stop work on such units of Products to the extent specified therein. Blue Coat’s termination liability for a cancellation shall be limited to payment for all units of Products shipped to Blue
Coat, payment for any units of Buffer Stock and payment of any Purchased Components and/or Custom Components as set forth in Section 9. 
 5.6 Order Increases. Upon written request from Blue Coat, Synnex shall use its commercially diligent efforts to (a) ship on the requested date the number of items ordered by Blue Coat in excess of that set forth in Blue
Coat’s Forecast; and (b) ship items in less than the expected lead-time if so requested by Blue Coat. However, failure to perform the foregoing shall not be considered a default under this Agreement. 
 5.7 Rush Orders. Blue Coat may, at its option, submit purchase orders requesting immediate shipment (as early as same day shipment) (“Rush
Orders”). Synnex shall use its commercially diligent efforts to fill Rush Orders. 
  

 8 

 6. SHIPPING 
 6.1 Packaging and Shipping. Synnex shall package and label the Products pursuant to the Specifications. Synnex shall not mark or label the Products except as set forth in the Specifications. Synnex shall tender the Products FOB
Origin and ship the Products to the designated shipping location set forth in the purchase order. Freight charges not billed as collect to Blue Coat’s customers will be invoiced to Blue Coat on the invoice associated with each purchase order.
All Products shall ship from Synnex in order to meet the required shipment date specified on the purchase order. In the event a shipment will not meet the required shipment date (and such failure was in Synnex’s control), routing may be changed
to premium transportation at Blue Coat’s request. In that event, Synnex shall bear the expense of any difference in the freight costs for the premium transportation. 
 6.2 Documentation. Synnex shall maintain complete and accurate shipping documentation for all shipments for a minimum of five (5) years
following the date of shipment. Shipment documentation includes the purchase order, packing slip, commercial invoice, carrier waybill and Synnex billing invoice. Blue Coat and its authorized agents and representatives shall have access to such
records for purposes of performing an audit during normal business hours during the term of this Agreement and during periods which Synnex is required to retain such records. Any and all such records disclosed to Blue Coat shall be deemed
“Confidential Information” as referenced in Section 17 below. 
 6.3 Late Shipments. Under no circumstances will
Synnex be liable for (a) any late shipment damages if it fails to ship items that were ordered and scheduled for shipment in shorter than the standard Product Manufacturing Time and Synnex was unable to ship on time, (b) any late shipment
damages if the delay was due to a Blue Coat designated supplier issue or (c) any late shipment damages if the delay was due to force majeure. 
 6.4 Allocation. Synnex shall in any event use diligent commercial efforts to maintain the ability to supply all Product that Blue Coat orders from Synnex. Synnex agrees that, in the event of an allocation due
to a Force Majeure event, Blue Coat’s order(s), subject to normal lead-time requirements, shall be filled according to an allocation plan no less favorable than that provided to any other Synnex customer. Synnex shall provide Blue Coat with as
much notice as possible if it anticipates or has reason to believe that Synnex’s output of the Product shall not be sufficient to meet all of Blue Coat’s requirements for any period. 
  

 9 

 7. ACCEPTANCE & REJECTION 
 7.1 Inspection. Notwithstanding any prior inspection or payment by Blue Coat, all Products shall be subject to final inspection and acceptance at Blue Coat’s specified destination within sixty
(60) days after delivery. 
 7.2 Rejection. If any Product is defective, or otherwise not in conformity with the requirements of
Blue Coat’s applicable Specifications, Blue Coat may require Synnex to promptly replace the Product and Synnex shall replace such Product within five (5) working days of Synnex’s receipt of such request. If after being requested by
Blue Coat Synnex fails to promptly replace or correct any defective item, then Blue Coat shall have the right, at its sole option and in addition to any other rights or remedied it may have, to (a) replace or correct such Product and charge to
Synnex the cost occasioned thereby, or (b) without further notice to cancel the applicable purchase order relative to the rejected material without penalty or terminate this Agreement for default in accordance with the termination provisions herein
and require refund of any payments made relative to the rejected Products. At Blue Coat’s request, Synnex shall provide to Blue Coat a failure analysis report specifying the reason for failure of any rejected Product. No Product shall be
returned to Synnex without an accompanying Synnex supplied RMA number. 
 7.3 Credits. If a Product was returned pursuant to
Section 7.2 due to an error by Synnex (e.g., an error as to workmanship or integration of the Components), then Synnex shall credit Blue Coat the amount paid for the replacement Product. The Product Information Document may contain information
specifying Synnex’s responsibilities and where Synnex shall be obligated to credit Blue Coat pursuant to this Section 7.2 and 7.3. 
 8. QUALITY

 8.1 Quality Control. Synnex acknowledges and agrees that the Products will be subject to the Quality Control Standards set forth
in the Product Information Document. Synnex shall perform and hereby warrants that all Products to be shipped have passed the test and quality control procedures set forth in the Product Information Document and meet the Specifications in all
material respects. 
 8.2 Quality Control Personnel. Blue Coat may at its option and expense send its quality control personnel
to Synnex’s manufacturing and assembly facilities to assist in or observe the work in progress as set forth in the Product Information Document without materially interrupting Synnex’s business. Blue Coat may from time to time suggest
commercially reasonable modification to Synnex’s procedures for performing the work under this Agreement for the purpose of enhancing or assuring quality and Synnex shall act in good faith to comply with such suggestions. 
 8.3 Quality. Synnex shall provide the Products to Blue Coat free of manufacturing defects and in conformance with this Agreement. 
 8.4 Management Reviews. Reviews will be held on a quarterly basis, after the close of Blue Coat’s fiscal quarter, to assess the performance
of Synnex against the 

  

 10 

 
mutually established objectives and criteria. Reviews will include the resetting of standards for subsequent periods as well as establishing and measuring
Synnex’s performance record at Blue Coat. The location and/or meeting method will be mutually agreed upon by the parties. If on-site meetings are determined to be appropriate, the intent will be to alternate periodically between Blue Coat and
Synnex sites. 
 8.5 Facility Inspection. Synnex shall, whenever reasonably requested by Blue Coat, permit Blue Coat, or a third party
acting on behalf of Blue Coat, the opportunity to inspect the production process at Synnex’s facility with respect to a Product, provided that such inspection shall not exceed one (1) per year. Blue Coat shall provide Synnex with two
(2) week notice prior to the visit. 
 8.6 Production Monitoring and Records. Synnex shall at all times maintain fully updated
production (including but not limited to work forecasted, work in progress and inventory levels), and Synnex shall permit Blue Coat to monitor at any time such levels through a Synnex’s web page or its successor site. In addition, Synnex shall
maintain complete and accurate records of all amounts billed and billable to Blue Coat, Variable Costs and payments made by Blue Coat hereunder in accordance with U.S. generally accepted accounting practices (consistently applied) for a period of
three (3) years following the date of final payment for Products within the term of this Agreement. Synnex will not modify its accounting treatment or methods for calculating or determining or allocating costs relating to the Products without
Blue Coat’s prior written consent, which such consent shall not be unreasonably withheld. Synnex agrees to provide reasonable supporting documentation concerning any disputed invoice to Blue Coat within thirty (30) days after Blue Coat
provides written notice of dispute to Synnex. Blue Coat agrees to submit to Synnex any dispute regarding any invoices, in writing, within thirty (30) days after Blue Coat becomes aware, but in no event longer than ninety (90) days after
the invoice date, of an issue that may give rise to a dispute. Each party shall have thirty (30) days to respond to claims in writing. Blue Coat and its authorized agents and representatives shall have access to such records for purposes of
audit during normal business hours during the term of this Agreement and during periods which Synnex is required to retain such records. Any and all such records disclosed to Blue Coat shall be deemed “Confidential Information” (whether or
not such records are labeled or identified as such) as referenced in Section 17 below. 
  

 11 

 9. INVENTORY LIABILITY 
 In the event that Synnex purchases or orders Components, in order to meet Blue Coat’s requirements for Buffer Stock or Forecasts, Blue Coat may be required to purchase the unused portion of such Components from
Synnex upon demand if Blue Coat fails to purchase Products in accordance with such Forecast. Blue Coat shall pay for such Components in the amounts and at times contemplated as follows: 
 9.1 Common Components. Blue Coat shall have no payment obligation or other liability for Common Components that are purchased by Synnex for this
Agreement and Synnex shall indemnify and hold Blue Coat harmless from all costs and expenses arising from such Common Components. 
 9.2
Purchased Components. Synnex shall purchase, pursuant to this Agreement, Purchased Components as required to meet the Forecasts. In the event that any Purchased Components become Excess Components or Obsolete Components, Synnex will make every
effort to return the Purchased Components to the respective suppliers or resell the Purchased Components to third parties (up to a period of thirty (30) days). Blue Coat shall reimburse Synnex for any price differential between the selling
price and the then current value of the Purchased Components provided that Synnex shall use its best commercially reasonable efforts to sell the Purchased Components at the best price available. Additionally, any restocking fees or related return
fees charged by suppliers for accepting the return of Purchased Components shall be the obligation of Blue Coat. In the event Purchased Components are not returned to the suppliers or resold to third parties within thirty (30) days of
Synnex’s demand for payment therefor, such Purchased Components shall be deemed to be Custom Components. 
 9.3 Custom
Components. Synnex shall purchase, pursuant to this Agreement, Custom Components as required to meet the Forecasts and purchase orders. In the event that any Custom Components become Excess Components, Blue Coat shall pay Synnex for a reasonable
carrying cost for such inventory of Excess or Obsolete Custom Components within thirty (30) business days of (a) Synnex’s demand for payment therefor or (b) the deemed conversion of Purchase Components to Custom Components as a
result of expiration of the thirty (30) day period specified in Section 9.2. In the event that any Custom Components become Obsolete Components, Blue Coat shall pay Synnex the amount Synnex paid for such Custom Components within thirty
(30) days after such Custom Component becoming an Obsolete Component. 
 9.4 Buffer Stock. Synnex will be required to maintain a
minimum buffer stock of all Products as specified in a Product Information Document (and updated by Blue Coat as needed) (“Buffer Stock”). This Buffer Stock is to accommodate requests for expedited orders and dead-on-arrival replacements.
Additionally, the Buffer Stock will be used to accommodate expected and unexpected quarterly business cycle fluctuations. However, the Buffer Stock will not exceed a maximum as specified in Product Information Document. If the Buffer Stock becomes
Excess Buffer Stock, then Blue 

  

 12 

 
Coat shall pay either (a) reasonable carrying costs for such Excess Buffer Stock or (b) the Product cost as outlined in the Product Information
Document or the updated cost agreed to by the parties. 
 10. TERM AND TERMINATION 
 10.1 Term. This Agreement shall begin upon the Effective Date and, unless terminated as provided herein, shall continue in effect for five
(5) years. The Agreement shall automatically renew for additional one (1) year terms unless and until either party provides written notice of non-renewal at least one hundred and eighty (180) days prior to the end of any such term.

 10.2 Termination of Agreement. 
 (a) For Breach. If a party materially breaches any provision of this Agreement, the non-breaching party may terminate this Agreement upon thirty (30) days written notice thereof unless such material breach is cured within the
notice period. 
 (b) Effect of Termination for Breach. If any unfilled or partially unfilled purchase orders are outstanding at
termination, the non-breaching party may cancel them without obligation to make any payments to the breaching party. Unfilled purchase orders (or portions thereof) that are not cancelled by the non-breaching party will be filled and paid for in
accordance with the terms of this Agreement. 
 10.3 Survivability and Obligations Upon Termination. Section 1, 3, 8, 9 (for a
period of three (3) months after the date of termination) and 10 through 20 shall survive the termination of this Agreement. Furthermore, in the event of any termination or expiration of this Agreement (a) Synnex shall deliver all Tools to
Blue Coat within five (5) days after termination, (b) each party shall return or destroy the other party’s Confidential Information with destruction certificate (if requested), except an archival copy as required by record retention
policies or law and (c) the parties shall comply with the transition services provisions set forth in Section 11. 
 11. TRANSITION AFTER
TERMINATION. Following any termination or expiration of this Agreement, each party shall assist and cooperate in good faith with the other party to enable an orderly dissolution of the relationship or the relationship contemplated hereby. Any
such assistance and cooperation shall be at each parties standard rates. Synnex shall use diligent efforts to provide to Blue Coat all services and assistance reasonably requested by Blue Coat to enable an orderly transition of the services at
Synnex’s standard rates for the employees involved in providing such transition services. 
  

 13 

 12. WARRANTIES 
 12.1 Authority. Each party warrants that it has the right and authority to enter into this Agreement and perform its obligations hereunder. 
 12.2 No Liens. Synnex further warrants that the Products will be shipped to Blue Coat or its designated location free of all liens, claims and/or
encumbrances. 
 12.3 No Defects. Synnex warrants that all Products shipped hereunder will be free from material defects in materials
and workmanship and will conform in all material respects to the Specifications for thirteen (13) months (the “Warranty Period”) from the date of shipment of the Products to Blue Coat or its designee. During the Warranty Period, Blue
Coat will ship defective Products, if any, to Synnex FOB Origin freight prepaid. Synnex shall repair or replace and return to Blue Coat (or the location designated by Blue Coat) defective Products within five (5) business days after receiving
the defective Products. Synnex shall ship the repaired or replaced Products FOB Destination to be designated by Blue Coat via the same ship method as the Products being returned, freight prepaid. The Warranty Period covering repaired or replaced
Products shall be the greater of the remainder of the original Warranty Period or ninety (90) days. The method of disposition of any replaced Products will be as mutually agreed by both parties in writing. 
 12.4 Repairs Not Covered Under Warranty. In addition to repairs covered in the Section above, Synnex shall provide repair services on all Products
for at least five (5) years after the Warranty Period has expired at the rates set forth in the Repair Service Level Agreement attached hereto as Exhibit B. 
 12.5 THIS WARRANTY IS IN LIEU OF ALL OTHER WARRANTIES WHETHER STATUTORY, EXPRESS OR IMPLIED. INCLUDING BUT NOT LIMITED TO, IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR PARTICULAR PURPOSE AND
NON-INFRINGEMENT AND FOR ALL OTHER OBLIGATIONS OR LIABILITIES ON SYNNEX’S PART. 
 13. SYNNEX NEITHER ASSUMES, NOR AUTHORIZES ANY OTHER PERSON TO
ASSUME FOR SYNNEX, ANY OTHER LIABILITY IN CONNECTION WITH THE SALE OF PRODUCTS TO BLUE COAT OR ITS CUSTOMERS. THIS WARRANTY SHALL NOT APPLY TO ANY UNITS OF PRODUCTS WHICH SHALL HAVE BEEN REPAIRED OR ALTERED OTHER THAN BY SYNNEX OR WHICH SHALL HAVE
BEEN SUBJECT TO MISUSE, NEGLIGENCE, OR ACCIDENT. SYNNEX SHALL NOT BE LIABLE FOR PERSONAL INJURY RESULTING DIRECTLY OR INDIRECTLY FROM THE DESIGN, MATERIAL, OPERATION OR INSTALLATION OF ANY UNITS OF PRODUCTS, OTHER THAN FOR PERSONAL INJURY RESULTING
SOLELY FROM WORKMANSHIP. 
  

 14 

 14. EXPORT. In exporting and importing the Products, each party agrees to comply with all export and import laws,
rules, policies, procedures, restrictions and regulations of the Department of Commerce or other United States or foreign agency or authority, and not to export or import, or allow the export or re-export or import of any goods in violation of any
such restrictions, laws or regulations. Each party shall obtain all licenses, permits and approvals required by any government; provided that in doing so Synnex shall at all times fully protect the Confidential Information and proprietary rights of
Blue Coat and shall not bind Blue Coat to any action or inaction unless agreed to in writing by Blue Coat. Blue Coat shall provide accurate product export classifications and valuations to Synnex. Each party will indemnify and hold the other party
harmless for any breach of this Section 14 by such party. 
 15. RELATIONSHIP OF PARTIES AND LIABILITY 
 15.1 Independent Contractor. Synnex and Blue Coat shall be deemed to be an independent contractor to one another and not its agent or employee.
Neither party shall have any authority to make any statements, representations or commitments of any kind, or to take any action, which shall be binding on the other party. 
 15.2 Indemnity. Each party shall be responsible for all acts and omissions, whether or not willful, reckless or negligent, of it, its agents and
employees, and shall indemnify and defend the other party and its customers against and save it harmless from, any and all claims, demands, damages, losses, costs, attorney’s fees or expenses of whatever nature (including, without limitation,
those resulting from infringement, design defects, product liability or violations of any law) made against or sustained by each party by reason of the foregoing or this Agreement or the work performed hereunder, whether or not any breach of
contract is involved. 
 16. LIMITATION OF LIABILITY. EXCEPT FOR A CLAIM PURSUANT TO SECTION 15.2 OR A BREACH OF SECTION 17, OR FOR LIABILITY ARISING
FROM THE GROSS NEGLIGENCE OR INTENTIONAL CONDUCT OF A PARTY, IN NO EVENT WILL EITHER PARTY BE LIABLE TO THE OTHER FOR SPECIAL, INCIDENTAL OR CONSEQUENTIAL DAMAGES RELATED TO THIS AGREEMENT, WHETHER FROM ANY TORT, CONTRACT, NEGLIGENCE, STRICT
LIABILITY OR ANY OTHER LEGAL OR EQUITABLE THEORY. 
 17. CONFIDENTIALITY 
 17.1 Proprietary Information. Prior to and during the performance of this Agreement, the parties may disclose or furnish to each other proprietary marketing, technical or business information either verbally or
in tangible form (the “Confidential Information”). Any information concerning Product design, the Base Unit, construction, assembly, manufacture, development, or architecture or the Product, and information concerning the business,
products, marketing efforts, technology or finances of Blue Coat shall be deemed to be the Confidential Information of Blue Coat. All information 

  

 15 

 
referenced in Section 6.2 and 8.6 above and any information concerning proprietary electronics and manufacturing techniques (except those invented
pursuant to Synnex’s obligations under the Agreement) and information concerning the business, products, marketing efforts, technology or finances of Synnex, shall be deemed to be the Confidential Information of Synnex. All Confidential
Information of the disclosing party shall be held in confidence by the receiving party and not directly or indirectly disclosed, copied or used. The terms and existence of this Agreement are confidential and neither party shall disclose such
information except as required by operation of law or regulatory authority. 
 17.2 Non-Confidential Information. The confidentiality
obligation set forth in Section 17.1, shall not apply to information that (a) is already known to the receiving party without any obligation of confidentiality; (b) has entered the public domain through no action or inaction of the
receiving party; (c) is generally available to the public; or (d) was disclosed to the receiving party by a third party not in violation of the disclosing party’s proprietary rights. 
 17.3 Injunction. Each party acknowledges that the Confidential Information of the disclosing party constitutes valuable trade secrets of the
disclosing party and that the unauthorized disclosure or use of such Confidential Information by the receiving party will cause irreparable harm, for which no remedies of law will be adequate. Accordingly, the parties agree that the disclosing party
shall have the right, in addition to any other remedies, to obtain injunctive relief against the receiving party in the event that the receiving party breaches the confidentiality obligations set forth in this Section 17. 
 18. INFRINGEMENT INDEMNIFICATION. Blue Coat shall defend, indemnify and hold harmless Synnex with respect to any claim, demand, cost or expense (including
reasonable attorney’s fees), settlement, and damages finally awarded to the extent that it is based upon a third party claim that a Product infringes any United states or foreign patent, copyright, trademark or trade secret. Blue Coat’s
indemnification obligations herein are conditioned upon Synnex (a) providing prompt notice of any indemnifiable claim to Blue Coat, (b) permitting Blue Coat to assume sole control of the defense and settlement of such claim or action
provided that Blue Coat does not prejudice Synnex’s position by admitting liability for Synnex for which Blue Coat has no obligation to indemnify Synnex or cause Synnex to incur any costs for which Blue Coat has no obligation to indemnify
Synnex (in such case, Synnex must provide consent for the settlement, such consent not to be unreasonably withheld or delayed), and (c) Synnex reasonably cooperating (at Blue Coat’s expense) in the defense and settlement thereof. The
foregoing states the sole and exclusive remedy and obligations of Blue Coat for infringement arising from this Agreement. 
 19. LIENS AND SECURITY
INTERESTS. Synnex warrants that Synnex has not and will not, directly or indirectly create, incur or permit to exist any lien, encumbrances or security interest on or with respect to the Components or Products during the term (except those
persons claiming by, through or under Blue Coat). 
  

 16 

 20. MISCELLANEOUS. 
 20.1 Assignability. Each party shall not transfer or assign any of its rights or obligations hereunder without the prior written consent of the other party and any transfer or obligations hereunder without the
prior written consent of the both parties shall be void and of no effect. Notwithstanding the foregoing, Blue Coat may assign this Agreement without consent to an acquirer of all or substantially all of Blue Coat’s equity, assets or business.

 20.2 Waiver. Any waiver of the terms hereof shall be effective only in the specific instance and for the specific purpose given,
and only if such waiver is express and in writing by the parties hereto. 
 20.3 Governing Law and Venue. This Agreement shall in all
respects be governed by and construed in accordance with the laws of the State of California, without regard to conflicts of laws provisions thereof and without regard to the United Nations Convention on Contracts for the International Sale of
Goods. The sole and exclusive venue and jurisdiction for all disputes arising from this Agreement shall be the state and Federal courts located in San Francisco, California. 
 20.4 Entire Agreement. This Agreement supersedes all proposals, oral or written, all negotiations, conversations, or discussions between or among
parties relating to the subject matter of this Agreement and all past dealing or industry custom. 
 20.5 Notices. All notices or
demands by any party pursuant to this Agreement shall be made by personal delivery or certified mail, return receipt requested to the addresses written above. All such notices shall be deemed received upon actual receipt for personal delivery and
upon deposit in the U.S. mail, postage prepaid, for certified mail delivery. 
 20.6 Successors and Assigns. The provisions of this
Agreement shall inure to the benefit of, and be binding upon, Synnex and its successors and assigns and Blue Coat and Blue Coat’s successors and assigns. 
 20.7 Amendments. Any provision hereof may be amended and the observance of any provision of this Agreement may be waived (either generally or in any particular instance and either retroactively or
prospectively) only with the written consent of Blue Coat and Synnex. However, it is the intention of the parties that this Agreement be controlling over additional or different terms of any invoices, confirmations or similar documents (other than
additional terms (e.g. quantities, proposed ship dates, etc.) expressly contemplated herein as to be supplied in such documents) even if accepted in writing by both parties. 
  

 17 

 20.8 Counterparts. This Agreement may be executed in one (1) or more counterparts.

 IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement, all as of the day and year first above written. 
  

			
	SYNNEX Corporation
		
	By:	 	 /s/ Simon Y. Leung

	Title:	 	General Counsel and Corporate Secretary
	
	Blue Coat Systems, Inc.
		
	By:	 	 /s/ Kevin S. Royal

	Title:	 	Chief Financial Officer

  

 18 

 EXHIBIT A  
 PRODUCT INFORMATION DOCUMENT 
 The following Product Information Document shall be considered a part
of the Amended and Restated Supply Agreement entered into by Blue Coat Systems, Inc. and Synnex Corporation on September 8, 2005. All terms not defined herein shall have the meaning ascribed to them in the Amended and Restated Supply Agreement.

 Effective Date: 
 PRODUCT INFORMATION 

 Product: 
 Specifications: 
 Product Manufacturing Time: 
 Quality Control Standards:

 PRICING AND MATERIAL INFORMATION 
 Initial Price: 
  

 A-1 

 Exhibit A - Product Information Document (cont.) 
  
 Component Breakdown: 
  

							
	 Component
	  	Component
Cost	  	Component
Lead Time	  	 Component Type
 (Custom, Common, Sensitive or Purchased)

		  		  		  	

 Engineering Costs: 
 OTHER 
 Project Managers: 
 Blue Coat: 
 Synnex: 
 Additional Requirements or Obligations: 
 Accepted and Agreed to by: 
  

									
	BLUE COAT SYSTEMS, INC.	 		 	SYNNEX CORPORATION
					
	By:	 	  
	 		 	By:	 	  

	Name:	 	  
	 		 	Name:	 	Simon Y. Leung
	Title:	 	  
	 		 	Title:	 	General Counsel and Corporate Secretary
	Date:	 	  
	 		 	Date:	 	  

  

 A-2 

 EXHIBIT B 
 REPAIR SLA 
  

 B-1

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