Document:

Form of Management Retention Agreement

 Exhibit 10.16 
 3PARdata, Inc. 
 MANAGEMENT RETENTION AGREEMENT 
 This Management Retention Agreement (the “Agreement”) is made and entered into by and between ______________ (the “Executive”) and 3PARdata, Inc.
(the “Company”), effective as of __________ (the “Effective Date”). 
 R E C I T A L S 
 A. It is expected that the Company from time to time may consider a Change of Control (as defined below). The Board of Directors of the Company (the “Board”)
recognizes that such consideration can be a distraction to the Executive and can cause the Executive to consider alternative employment opportunities. The Board has determined that it is in the best interests of the Company and its shareholders to
assure that the Company will have the continued dedication and objectivity of the Executive, notwithstanding the possibility, threat or occurrence of a Change of Control of the Company. 
 B. The Board believes that it is in the best interests of the Company and its shareholders to provide the Executive with an incentive to continue his or her employment and to motivate the Executive to maximize the
value of the Company upon a Change of Control for the benefit of its shareholders. 
 C. The Board believes that it is imperative to provide the Executive
with certain severance benefits upon the Executive’s termination of employment following a Change of Control which provides the Executive with enhanced financial security and incentive and encouragement to remain with the Company
notwithstanding the possibility of a Change of Control. 
 D. Certain capitalized terms used in this Agreement are defined in Section 4 below.

 The parties hereto agree as follows: 
 1. Term of Agreement.
This Agreement shall terminate upon the date that all obligations of the parties hereto with respect to this Agreement have been satisfied. 
 2. At-Will
Employment. The Company and the Executive acknowledge that the Executive’s employment is and shall continue to be at-will, as defined under applicable law, and may be terminated by either party at any time, with or without cause or notice. If
the Executive’s employment terminates for any reason, including (without limitation) any termination prior to a Change of Control, the Executive shall not be entitled to any payments, benefits, damages, awards or compensation other than as
provided by this Agreement, or as may otherwise be available in accordance with the Company’s established employee plans or pursuant to other written agreements with the Company. 
 3. Change of Control Severance Benefits. 
  

 (a) Involuntary Termination other than for Cause, Death or Disability or Voluntary Termination for Good Reason Following
A Change of Control. If, within twelve (12) months following a Change of Control, the Executive’s employment is terminated (i) involuntarily by the Company other than for Cause, death or Disability or (ii) by the Executive
pursuant to a Voluntary Termination for Good Reason, then, subject to the Executive entering into and not revoking a mutual release of claims with the Company substantially in the form attached as Exhibit A to this Agreement, the Company shall
provide the Executive with the following benefits upon such termination: 
 (i) Severance Payment. A lump-sum cash payment in an amount equal to fifty
percent (50%) of the Executive’s Annual Compensation; 
 (ii) Continued Executive Benefits. Company-paid health, dental, vision, long-term
disability and life insurance coverage at the same level of coverage as was provided to the Executive immediately prior to the Change of Control and at the same ratio of Company premium payment to Executive premium payment as was in effect
immediately prior to the Change of Control (the “Company-Paid Coverage”). If such coverage included the Executive’s dependents immediately prior to the Change of Control, such dependents shall also be covered at Company expense.
Company-Paid Coverage shall continue until the earlier of (A) one year from the date of termination, or (B) the date upon which the Executive and his or her dependents become covered under another employer’s group health, dental,
vision, long-term disability or life insurance plans that provide the Executive and his or her dependents with comparable benefits and levels of coverage. For purposes of Title X of the Consolidated Budget Reconciliation Act of 1985
(“COBRA”), the date of the “qualifying event” for the Executive and his or her dependents shall be the date upon which the Company-Paid Coverage commences, and each month of Company-Paid Coverage provided hereunder shall offset a
month of continuation coverage otherwise due under COBRA. 
 (iii) Equity Compensation Accelerated Vesting. Fifty percent (50%) of the unvested portion
of any stock option, restricted stock or other Company equity compensation held by the Executive shall be automatically accelerated in full so as to become completely vested or, if the Executive has exercised his or her early exercise rights with
respect to any stock option, then fifty percent (50%) of the unreleased portion of the stock option shall be automatically released from the Company’s repurchase option pursuant to the stock option. 
 (b) Voluntary Resignation. If the Executive’s employment terminates by reason of the Executive’s voluntary resignation (and is not a Voluntary Termination for
Good Reason), then the Executive shall not be entitled to receive severance or other benefits except for those (if any) as may then be established under the Company’s then existing severance and benefits plans or pursuant to other written
agreements with the Company. 
 (c) Disability; Death. If the Executive’s employment with the Company terminates as a result of the Executive’s
Disability, or if the Executive’s employment is terminated due to the death of the Executive, then the Executive shall not be entitled to receive severance or other benefits except for those (if any) as may then be established under the
Company’s 

 
then existing severance and benefits plans or pursuant to other written agreements with the Company. 
 (d) Termination for Cause. If the Executive is terminated for Cause, then the Executive shall not be entitled to receive severance or other benefits. 
 (e) Termination Apart from Change of Control. In the event the Executive’s employment is terminated for any reason, either prior to the occurrence of a Change of
Control or after the twelve (12) month period following a Change of Control, then the Executive shall be entitled to receive severance and any other benefits only as may then be established under the Company’s then existing severance and
benefits plans or pursuant to other written agreements with the Company, including the Executive’s offer letter with the Company dated May 8, 2002. 
 4. Definition of Terms. The following terms referred to in this Agreement shall have the following meanings: 
 (a) Annual Compensation.
“Annual Compensation” shall mean an amount equal to the Executive’s Company annual base salary at the rate in effect immediately preceding the Executive’s date of termination with the Company. 
 (b) Cause. “Cause” shall mean (i) an act of personal dishonesty taken by the Executive in connection with his or her responsibilities as an Executive and
intended to result in substantial personal enrichment of the Executive, (ii) the Executive being convicted of a felony, (iii) a willful act by the Executive which constitutes gross misconduct and which is injurious to the Company,
(iv) following delivery to the Executive of a written demand for performance from the Company which describes the basis for the Company’s reasonable belief that the Executive has not substantially performed his or her duties, continued
violations by the Executive of the Executive’s obligations to the Company which are demonstrably willful and deliberate on the Executive’s part. 
 (c) Change of Control. “Change of Control” means the occurrence of any of the following events: 
 (i) Any “person” (as such
term is used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended) becomes the “beneficial owner” (as defined in Rule 13d-3 under said Act), directly or indirectly, of securities of the Company representing fifty
percent (50%) or more of the total voting power represented by the Company’s then outstanding voting securities; or 
 (ii) The consummation of the
sale or disposition by the Company of all or substantially all the Company’s assets; or 
 (iii) The consummation of a merger or consolidation of the
Company with any other corporation, other than a merger or consolidation which would result in the voting securities of the Company outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted
into voting securities of the surviving entity or its parent) at least fifty percent (50%) of the total voting power 

 
represented by the voting securities of the Company or such surviving entity or its parent outstanding immediately after such merger or consolidation; or

 (iv) A change in the composition of the Board occurring within a two-year period, as a result of which fewer than a majority of the directors are
Incumbent Directors. “Incumbent Directors” shall mean directors who either (A) are directors of the Company as of the Effective Date, or (B) are elected, or nominated for election, to the Board with the affirmative votes of at
least a majority of those directors whose election or nomination was not in connection with any transaction described in subsections (i), (ii), or (iii) above, or in connection with an actual or threatened proxy contest relating to the election
of directors to the Company. 
 (d) Disability. “Disability” shall mean that the Executive has been unable to perform his or her Company duties as
the result of his or her incapacity due to physical or mental illness, and such inability, at least twenty-six (26) weeks after its commencement, is determined to be total and permanent by a physician selected by the Company or its insurers and
acceptable to the Executive or the Executive’s legal representative (such Agreement as to acceptability not to be unreasonably withheld). Termination resulting from Disability may only be effected after at least thirty (30) days’
written notice by the Company of its intention to terminate the Executive’s employment. In the event that the Executive resumes the performance of substantially all of his or her duties hereunder before the termination of his or her employment
becomes effective, the notice of intent to terminate shall automatically be deemed to have been revoked. 
 (e) Voluntary Termination for Good Reason.
“Voluntary Termination for Good Reason” shall mean the Executive voluntarily resigns after the occurrence of any of the following (i) without the Executive’s express written consent, a material reduction of the Executive’s
duties, authority or responsibilities, relative to the Executive’s duties, authority or responsibilities as in effect immediately prior to such reduction, or the assignment to the Executive of such reduced duties, authority or responsibilities;
provided, however, that a reduction in duties, authority or responsibilities solely by virtue of the Company being acquired and made part of a larger entity shall not by itself constitute grounds for a “Voluntary Termination for Good
Reason”; (ii) without the Executive’s express written consent, a material reduction, without good business reasons, of the facilities or perquisites (including office space and location) available to the Executive immediately prior to
such reduction; (iii) a reduction by the Company in the base salary of the Executive as in effect immediately prior to such reduction; (iv) a material reduction by the Company in the aggregate level of employee benefits, including bonuses,
to which the Executive was entitled immediately prior to such reduction with the result that the Executive’s aggregate benefits package is materially reduced (other than a reduction that generally applies to Company employees); (v) the
relocation of the Executive to a facility or a location more than 60 miles from [a specified location depending on the Executive], without the Executive’s express written consent; (vi) the failure of the Company to obtain the assumption of
this agreement by any successors contemplated in Section 6(a) below; or (vii) any act or set of facts or circumstances which would, under California case law or statute, constitute a constructive termination of the Executive. 

 

 5. Non-Solicitation. In consideration for the severance benefits the Executive is to receive herein, if any, the
Executive agrees that he or she will not, at any time during the one year following his or her termination date, directly or indirectly solicit any individuals to leave the Company’s (or any of its subsidiaries’) employ for any reason or
interfere in any other manner with the employment relationships at the time existing between the Company (or any of its subsidiaries) and its current or prospective employees. 
 6. Successors. 
 (a) Company’s Successors. Any successor to the Company (whether direct or indirect and whether by
purchase, merger, consolidation, liquidation, spin-off or otherwise) to all or substantially all of the Company’s business and/or assets shall assume the obligations under this Agreement and agree expressly to perform the obligations under this
Agreement in the same manner and to the same extent as the Company would be required to perform such obligations in the absence of a succession. For all purposes under this Agreement, the term “Company” shall include any such successor to
the Company’s business and/or assets which executes and delivers the assumption agreement described in this Section 6(a) or which becomes bound by the terms of this Agreement by operation of law. 
 (b) Executive’s Successors. The terms of this Agreement and all rights of the Executive hereunder shall inure to the benefit of, and be enforceable by, the
Executive’s personal or legal representatives, executors, administrators, successors, heirs, distributees, devisees and legatees. 
 7. Notice.

 (a) General. Notices and all other communications contemplated by this Agreement shall be in writing and shall be deemed to have been duly given when
personally delivered or one day following mailing via Federal Express or similar overnight courier service. In the case of the Executive, mailed notices shall be addressed to him or her at the home address which he or she most recently communicated
to the Company in writing. In the case of the Company, mailed notices shall be addressed to its corporate headquarters, and all notices shall be directed to the attention of its Secretary. 
 (b) Notice of Termination. Any termination by the Company for Cause or by the Executive pursuant to a Voluntary Termination for Good Reason shall be communicated by a
notice of termination to the other party hereto given in accordance with Section 7(a) of this Agreement. Such notice shall indicate the specific termination provision in this Agreement relied upon, shall set forth in reasonable detail the facts
and circumstances claimed to provide a basis for termination under the provision so indicated, and shall specify the termination date (which shall be not more than thirty (30) days after the giving of such notice). The failure by the Executive
to include in the notice any fact or circumstance which contributes to a showing of Voluntary Termination for Good Reason shall not waive any right of the Executive hereunder or preclude the Executive from asserting such fact or circumstance in
enforcing his or her rights hereunder. 
  

 8. Miscellaneous Provisions. 
 (a) Waiver. No provision of this Agreement shall be modified, waived or discharged unless the modification, waiver or discharge is agreed to in writing and signed by the Executive and by two authorized officers of the Company (other than
the Executive). No waiver by either party of any breach of, or of compliance with, any condition or provision of this Agreement by the other party shall be considered a waiver of any other condition or provision or of the same condition or provision
at another time. 
 (b) Whole Agreement. No agreements, representations or understandings (whether oral or written and whether express or implied) which are
not expressly set forth in this Agreement have been made or entered into by either party with respect to the subject matter hereof, except for the Executive’s offer letter with the Company dated May 8, 2002. This Agreement represents the
entire understanding of the parties hereto with respect to the subject matter hereof and supersedes all prior arrangements and understandings regarding same. 
 (c) Choice of Law. The validity, interpretation, construction and performance of this Agreement shall be governed by the laws of the State of California. 
 (d) Severability. The invalidity or unenforceability of any provision or provisions of this Agreement shall not affect the validity or enforceability of any other provision hereof, which shall remain in full force and effect. 
 (e) Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which together will constitute one and the same
instrument. 
 [Remainder of Page Left Blank Intentionally] 
 IN
WITNESS WHEREOF, each of the parties has executed this Agreement, in the case of the Company by its duly authorized officer, effective as of the day and year first above written. 
 EXHIBIT A 
 FORM RELEASE OF CLAIMS AGREEMENT 
 This Release of Claims Agreement (this “Agreement”) is made and entered into by and between 3PARdata, Inc. (the “Company”) and ___________ (the
“Executive”). 
 WHEREAS, the Executive was employed by the Company; and 
 WHEREAS, the Company (or the Company’s predecessor) and the Executive have entered into a Management Retention Agreement effective as of May 10, 2003 (the “Management Agreement”); 
  

 NOW THEREFORE, in consideration of the mutual promises made herein and other good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, the Company and the Executive (collectively referred to as the “Parties”) desiring to be legally bound do hereby agree as follows: 
 1. Termination. The Executive’s employment with the Company terminated on ___________, 20__. 
 2. Consideration. Subject to and in consideration of the Executive’s release of claims as provided herein, the Company has agreed to pay the Executive certain benefits and the Executive has agreed to provide
certain benefits to the Company, both as set forth in the Management Agreement. 
 3. Payment of Salary. The Executive acknowledges and represents that the
Company has paid all salary, wages, bonuses, accrued vacation, commissions and any and all other benefits due to the Executive. 
 4. Release of Claims. The
Executive agrees that the foregoing consideration represents settlement in full of all outstanding obligations owed to the Executive by the Company. The Executive, on his or her own behalf and his or her respective heirs, family members, executors
and assigns, hereby fully and forever releases the Company and its past, present and future officers, agents, directors, employees, investors, shareholders, administrators, affiliates, divisions, subsidiaries, parents, predecessor and successor
corporations, and assigns, from, and agrees not to sue or otherwise institute or cause to be instituted any legal or administrative proceedings concerning any claim, duty, obligation or cause of action relating to any matters of any kind, whether
presently known or unknown, suspected or unsuspected, that he or she may possess arising from any omissions, acts or facts that have occurred up until and including the Effective Date of this Agreement including, without limitation, 
 (a) any and all claims relating to, or arising from, the Executive’s employment relationship with the Company and the termination of that relationship; 

(b) any and all claims relating to, or arising from, the Executive’s right to purchase, or actual purchase of shares of stock of the Company, including, without
limitation, any claims for fraud, misrepresentation, breach of fiduciary duty, breach of duty under applicable state corporate law and securities fraud under any state or federal law; 
 (c) any and all claims for wrongful discharge of employment, termination in violation of public policy, discrimination, breach of contract (both express and implied), breach of a covenant of good faith and fair
dealing (both express and implied), promissory estoppel, negligent or intentional infliction of emotional distress, negligent or intentional misrepresentation, negligent or intentional interference with contract or prospective economic advantage,
unfair business practices, defamation, libel, slander, negligence, personal injury, assault, battery, invasion of privacy, false imprisonment and conversion; 
 (d) any and all claims for violation of any federal, state or municipal statute, including, but not limited to, Title VII of the Civil Rights Act of 1964, the Civil Rights Act of 1991, 

 
the Age Discrimination in Employment Act of 1967, the Americans with Disabilities Act of 1990, the Fair Labor Standards Act, the Executive Retirement Income
Security Act of 1974, The Worker Adjustment and Retraining Notification Act, the California Fair Employment and Housing Act, and Labor Code Section 201, et seq. and Section 970, et seq. and all amendments to each such Act as well as the
regulations issued thereunder; 
 (e) any and all claims for violation of the federal or any state constitution; 
 (f) any and all claims arising out of any other laws and regulations relating to employment or employment discrimination; and 
 (g) any and all claims for attorneys’ fees and costs. 
 The Executive
agrees that the release set forth in this Section 4 shall be and remain in effect in all respects as a complete general release as to the matters released. This release does not extend to any obligations incurred under this Agreement.

 5. Acknowledgment of Waiver of Claims under ADEA. The Executive acknowledges that he or she is waiving and releasing any rights he or she may have under
the Age Discrimination in Employment Act of 1967 (“ADEA”) and that this waiver and release is knowing and voluntary. The Executive and the Company agree that this waiver and release does not apply to any rights or claims that may arise
under the ADEA after the Effective Date of this Agreement. The Executive acknowledges that the consideration given for this waiver and release agreement is in addition to anything of value to which the Executive was already entitled. The Executive
further acknowledges that he or she has been advised by this writing that (a) he or she should consult with an attorney prior to executing this Agreement; (b) he or she has at least twenty-one (21) days within which to consider this
Agreement; (c) he or she has seven (7) days following the execution of this Agreement by the Parties to revoke the Agreement; and (d) this Agreement shall not be effective until the revocation period has expired. Any revocation should
be in writing and delivered to the Company by the close of business on the seventh (7th) day from the date that the Executive signs this Agreement. 
 6. Civil Code Section 1542. The Executive represents that he or she is not aware of any claims against the Company other than the claims that are released by this Agreement. The Executive acknowledges that he or she has been advised by
legal counsel and is familiar with the provisions of California Civil Code Section 1542, which provides as follows: 
 A GENERAL RELEASE DOES NOT EXTEND
TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM MUST HAVE MATERIALLY AFFECTED HIS SETTLEMENT WITH THE DEBTOR. 
 The Executive, being aware of said code section, agrees to expressly waive any rights he or she may have thereunder, as well as under any other statute or common law
principles of similar effect. 
  

 7. No Pending or Future Lawsuits. The Executive represents that he or she has no lawsuits, claims or actions pending in
his or her name, or on behalf of any other person or entity, against the Company or any other person or entity referred to herein. The Executive also represents that he or she does not intend to bring any claims on his or her own behalf or on behalf
of any other person or entity against the Company or any other person or entity referred to herein. 
 8. Confidentiality. The Executive agrees to use his or
her best efforts to maintain in confidence the existence of this Agreement, the contents and terms of this Agreement, and the consideration for this Agreement (hereinafter collectively referred to as “Release Information”). The Executive
agrees to take every reasonable precaution to prevent disclosure of any Release Information to third parties and agrees that there will be no publicity, directly or indirectly, concerning any Release Information. The Executive agrees to take every
precaution to disclose Release Information only to those attorneys, accountants, governmental entities and family members who have a reasonable need to know of such Release Information. 
 9. No Cooperation. The Executive agrees he or she will not act in any manner that might damage the business of the Company. The Executive agrees that he or she will not counsel or assist any attorneys or their clients
in the presentation or prosecution of any disputes, differences, grievances, claims, charges or complaints by any third party against the Company and/or any officer, director, employee, agent, representative, shareholder or attorney of the Company,
unless under a subpoena or other court order to do so. 
 10. Costs. The Parties shall each bear their own costs, expert fees, attorneys’ fees and other
fees incurred in connection with this Agreement. 
 11. Authority. The Company represents and warrants that the undersigned has the authority to act on
behalf of the Company and to bind the Company and all who may claim through it to the terms and conditions of this Agreement. The Executive represents and warrants that he or she has the capacity to act on his or her own behalf and on behalf of all
who might claim through him or her to bind them to the terms and conditions of this Agreement. 
 12. No Representations. The Executive represents that he or
she has had the opportunity to consult with an attorney, and has carefully read and understands the scope and effect of the provisions of this Agreement. Neither party has relied upon any representations or statements made by the other party hereto
which are not specifically set forth in this Agreement. 
 13. Severability. In the event that any provision hereof becomes or is declared by a court of
competent jurisdiction to be illegal, unenforceable or void, this Agreement shall continue in full force and effect without said provision. 
 14. Entire
Agreement. This Agreement and the Management Agreement and the agreements and plans referenced therein represent the entire agreement and understanding between the Company and the Executive concerning the Executive’s 

 
separation from the Company, and supersede and replace any and all prior agreements and understandings concerning the Executive’s relationship with the
Company and his or her compensation by the Company. This Agreement may only be amended in writing signed by the Executive and an executive officer of the Company. 
 15. Governing Law. This Agreement shall be governed by the internal substantive laws, but not the choice of law rules, of the State of California. 
 16. Effective Date. This Agreement is effective eight (8) days after it has been signed by both Parties. 
 17. Counterparts. This Agreement
may be executed in counterparts, and each counterpart shall have the same force and effect as an original and shall constitute an effective, binding agreement on the part of each of the undersigned. 
 18. Voluntary Execution of Agreement. This Agreement is executed voluntarily and without any duress or undue influence on the part or behalf of the Parties hereto, with
the full intent of releasing all claims. The Parties acknowledge that: 
 (a) They have read this Agreement; 
 (b) They have been represented in the preparation, negotiation and execution of this Agreement by legal counsel of their own choice or that they have voluntarily
declined to seek such counsel; 
 (c) They understand the terms and consequences of this Agreement and of the releases it contains; and 
 (d) They are fully aware of the legal and binding effect of this Agreement. 
 IN WITNESS WHEREOF, the Parties have executed this Agreement on the respective dates set forth below. 
 3PARdata, INC. 
 By: 
 Title: 
 Date: 
 EXECUTIVE 
 _______________________ 
 Date:Employment Agreement - David C. Scott

 Exhibit 10.17 
 3PAR, INC. 
 EMPLOYMENT AGREEMENT 
 This Agreement is made by and between 3PAR, Inc. (the “Company”), and David C-A Scott (“Executive”). 
 1. Duties and Scope of Employment. 
 (a) Positions; CEO Employment Commencement Date; Duties. The Company shall employ the Executive as the President and Chief Executive Officer of the Company reporting to the Board of Directors of the Company (the “Board”).
The period of Executive’s employment hereunder is referred to herein as the “Employment Term.” During the Employment Term, Executive shall render such business and professional services in the performance of his duties, consistent
with Executive’s position within the Company as shall reasonably be assigned to him by the Board. 
 (b) Obligations. During the
Employment Term, Executive shall devote his full business efforts and time to the Company. Executive agrees, during the Employment Term, not to actively engage in any other employment, occupation or consulting activity for any direct or indirect
remuneration without the prior approval of the Board; provided, however, that Executive may serve in any capacity with any civic, educational or charitable organization, or as a member of corporate Boards of Directors or committees thereof, without
the approval of the Board, unless there is a conflict of interest. 
 (c) Employee Benefits. During the Employment Term, Executive
shall be eligible to participate in the employee benefit plans maintained by the Company that are applicable to other senior management to the full extent provided for under those plans. 
 2. At-Will Employment. Executive and the Company understand and acknowledge that Executive’s employment with the Company constitutes
“at-will” employment. Subject to the Company’s obligation to provide severance benefits as specified herein, Executive and the Company acknowledge that this employment relationship may be terminated at any time, upon written notice to
the other party, with or without good cause or for any or no cause, at the option either of the Company or Executive. 
 3.
Compensation. 
 (a) Base Salary. While employed by the Company, the Company shall pay the Executive as compensation for his
services a base salary at the annualized rate of three hundred and fifty thousand dollars ($350,000) (the “Base Salary”). Such salary shall be paid periodically in accordance with normal Company payroll practices and subject to the usual,
required withholding. Executive’s Base Salary shall be reviewed annually by the Compensation Committee of the Board for possible adjustments in light of Executive’s performance and competitive data. 

 (b) Target Bonus. Executive shall be eligible to earn an annual target bonus based upon the
Company’s fiscal year equal to one hundred percent (100%) of his Base Salary (“Target Bonus”). The actual bonus, if any, Executive will receive may be greater or lesser and will depend upon the extent to which the applicable
performance goal(s) specified by the Compensation Committee are achieved or exceeded. Any Target Bonus earned pursuant hereto will be paid to Executive within two and one-half months of the end of the fiscal year to which the Target Bonus relates.

 (c) Equity Grants. In addition to the equity compensation awards that Executive has already received, Executive will be eligible to
receive additional equity grants on a periodic basis consistent with the normal compensation practices of the Company. 
 4. Severance
Benefits. 
 (a) Involuntary Termination other than for Cause, Death or Disability; Voluntary Termination for Good Reason During Change
of Control Period. If, within eighteen (18) months following a Change of Control (the “Change of Control Period”), Executive’s employment is terminated (i) involuntarily by the Company other than for Cause, Death or
Disability or (ii) due to a Voluntary Termination for Good Reason, then, subject to Executive entering into and not revoking a standard form of release of claims with the Company and further subject to Executive complying with the provisions of
Section 7 hereof, the Company shall provide Executive with the following benefits: 
 (i) Severance Payment. Three hundred
percent (300%) of the Executive’s Base Salary, payable in a lump-sum within thirty (30) days following Executive’s termination of employment (subject to delayed payment to avoid additional taxation under Section 409A of the
Internal Revenue Code of 1986, as amended (the “Code”),); 
 (ii) Equity Compensation Accelerated Vesting. One hundred
percent (100%) of the unvested portion of any stock option, restricted stock or other Company equity compensation held by the Executive shall automatically be accelerated in full so as to become completely vested. 
 (iii) Continued Benefits. Company-paid group health, dental, vision and life insurance coverage at the same level of coverage as was provided to
such Executive immediately prior to the Change of Control and at the same ratio of Company premium payment to Executive premium payment as was in effect immediately prior to the Change of Control (the “Company-Paid Coverage”). If such
coverage included the Executive’s dependents immediately prior to the Change of Control, such dependents shall also be covered at Company expense. Company-Paid Coverage shall continue until the earlier of (i) one year from the date of
termination, or (ii) the date upon which the Executive and his dependents become covered under another employer’s group health, dental, vision or life insurance plans that provide Executive and his dependents with comparable benefits and
levels of coverage. For purposes of Title X of the Consolidated Budget Reconciliation Act of 1985 (“COBRA”), the date of the “qualifying event” for Executive and his or her dependents shall be the date upon which the Company-Paid
Coverage commences, and each month of Company-Paid Coverage provided hereunder shall offset a month of continuation coverage otherwise due under COBRA. 
  

 -2- 

 (b) Involuntary Termination Other than for Cause or Voluntary Termination for Good Reason Outside of
Change of Control Period; Termination Due to Death or Disability. If the Executive’s employment with the Company terminates (i) as a result of the Executive’s Disability, (ii) due to the death of the Executive,
(iii) involuntarily by the Company for any reason other than for Cause outside of the Change of Control Period, or (iv) due to a Voluntary Termination for Good Reason outside of the Change of Control Period, then, subject to Executive (or
his estate or personal representative) entering into and not revoking a standard form of release of claims with the Company and further subject to Executive complying with the provisions of Section 7 hereof (except in the case of
Executive’s death), the Company shall provide Executive with the following benefits upon such termination: 
 (i) Severance
Payment. Three hundred percent (300%) of the Executive’s Base Salary, payable in a lump-sum within thirty (30) days following Executive’s termination of employment (subject to delayed payment to avoid additional taxation
under Code Section 409A); 
 (ii) Equity Compensation Accelerated Vesting. Any stock option, restricted stock or other Company
equity compensation held by the Executive shall receive one year’s accelerated vesting. 
 (iii) Continued Benefits. Company-paid
group health, dental, vision and life insurance coverage at the same level of coverage as was provided to such Executive immediately prior to the Change of Control and at the same ratio of Company premium payment to Executive premium payment as was
in effect immediately prior to the Change of Control (the “Company-Paid Coverage”). If such coverage included the Executive’s dependents immediately prior to the Change of Control, such dependents shall also be covered at Company
expense. Company-Paid Coverage shall continue until the earlier of (i) one year from the date of termination, or (ii) the date upon which the Executive and his dependents become covered under another employer’s group health, dental,
vision, or life insurance plans that provide Executive and his dependents with comparable benefits and levels of coverage. For purposes of Title X of the Consolidated Budget Reconciliation Act of 1985 (“COBRA”), the date of the
“qualifying event” for Executive and his or her dependents shall be the date upon which the Company-Paid Coverage commences, and each month of Company-Paid Coverage provided hereunder shall offset a month of continuation coverage otherwise
due under COBRA. 
 (c) Voluntary Resignation other than for Good Reason; Termination For Cause. If the Executive’s employment
terminates by reason of the Executive’s voluntary resignation (and is not a Voluntary Termination for Good Reason), or if the Executive is terminated for Cause, then the Executive shall not be entitled to receive severance or other benefits
except for those (if any) as may then be established under the Company’s then existing severance and benefits plans or pursuant to other written agreements with the Company. 
 (d) Code Section 409A. Notwithstanding any other provision of this Agreement, if the Executive is a “key employee” under Code
Section 409A and a delay in making any payment 
  

 -3- 

 or providing any benefit under this Plan is required to avoid additional taxation under Code Section 409A, such
payments or benefits shall not be made or provided until the end of six (6) months following the date of the Employee’s separation from service as required by Code Section 409 A. 
 5. Golden Parachute Excise Taxes. In the event that the benefits provided for in this Agreement or otherwise constitute “parachute
payments” within the meaning of Section 280G of the Code would be subject to the excise tax imposed by Section 4999 of the Code (the “Excise Tax”), and the aggregate value of such parachute payments, as determined in
accordance with Section 280G of the Code and the Treasury Regulations thereunder is less than the product obtained by multiplying 3.59 by Executive’s “base amount” within the meaning of Code Section 280G(b)(3), then such
benefits shall be reduced to the extent necessary (but only to that extent) so that no portion of such benefits will be subject to the Excise Tax. Alternatively, in the event that the benefits provided for in this Agreement or otherwise constitute
“parachute payments” within the meaning of Section 280G of the Code, would be subject to the Excise Tax, and the aggregate value of such parachute payments, as determined in accordance with Section 280G of the Code and the
Treasury Regulations thereunder is equal to or greater than the product obtained by multiplying 3.59 by Executive’s “base amount” within the meaning of Code Section 280G(b)(3), then Executive shall receive (i) a payment from
the Company sufficient to pay such Excise Tax, plus (ii) an additional payment from the Company sufficient to pay the Excise Tax and federal and state income and employment taxes arising from the payments made by the Company to Executive
pursuant to this sentence (together, the “Excise Tax Gross-Up Payment”); provided, however, that the Excise Tax Gross-Up Payment shall be capped at a maximum of one million dollars ($1,000,000). The Executive shall receive such payments no
later than the end of the Executive’s taxable year following the taxable year in which the Executive remitted the applicable taxes. Unless the Company and Executive otherwise agree in writing, the determination of Executive’s excise tax
liability and the amount required to be paid under this section shall be made in writing by a “Big Four” national accounting firm (the “Accountants”). For purposes of making the calculations required by this section, the
Accountants may make reasonable assumptions and approximations concerning applicable taxes and may rely on reasonable, good faith interpretations concerning the application of Sections 280G and 4999 of the Code. The Company and Executive shall
furnish to the Accountants such information and documents as the Accountants may reasonably request in order to make a determination under this section. The Company shall bear all costs the Accountants may reasonably incur in connection with any
calculations contemplated by this section. 
 6. Definition of Terms. The following terms referred to in this Agreement shall have the
following meanings: 
 (a) Cause. “Cause” shall mean (i) an act of personal dishonesty taken by the Executive in
connection with his responsibilities as an employee and intended to result in substantial personal enrichment of the Executive, (ii) Executive being convicted of, or plea of nolo contendere to, a felony, (iii) breach of
Executive’s obligations under Section 3(b) hereof or of the Employee Confidential Information and Invention and Assignment Agreement previously entered into by and between the Company and Executive (the “Confidential Information
Agreement”), which breach is not cured within thirty (30) days of Executive’s receipt of written notice specifying the grounds for such breach; (iv) willful material breach of the Company’s written policies; or (v) a
willful act by the Executive which constitutes gross misconduct and which is injurious to the Company. 
  

 -4- 

 (b) Change of Control. “Change of Control” means the occurrence of any of the following
events: 
 (i) Any “person” (as such term is used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended)
becomes the “beneficial owner” (as defined in Rule 13d-3 under said Act), directly or indirectly, of securities of the Company representing fifty percent (50%) or more of the total voting power represented by the Company’s then
outstanding voting securities; or 
 (ii) The consummation of the sale or disposition by the Company of all or substantially all the
Company’s assets; or 
 (iii) The consummation of a merger or consolidation of the Company with any other corporation, other than a
merger or consolidation which would result in the voting securities of the Company outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity)
at least fifty percent (50%) of the total voting power represented by the voting securities of the Company or such surviving entity outstanding immediately after such merger or consolidation. 
 (c) Disability. “Disability” means that, at least 26 weeks after commencement of the Executive’s inability to engage in any
substantial gainful activity, a physician selected by the American Medical Association and acceptable to the Company or its insurers as well as the Executive or the Executive’s legal representative (such agreements to acceptability not to be
unreasonably withheld) has determined that the Executive (i) is unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected to result in death or can be
expected to last for a continuous period of not less than twelve (12) months, or (ii) is, by reason of any medically determinable physical or mental impairment which can be expected to last for a continuous period of not less than twelve
(12) months, receiving income replacement benefits for a period of not less than six (6) months under an accident and health plan covering Company employees. Termination resulting from Disability may only be effected after at least 30
day’s written notice by the Company of its intention to terminate the Executive’s employment following the independent physician’s determination. In the event the Executive resumes the performance of substantially all of his duties
hereunder before the termination of his employment becomes effective, the notice of intent to terminate shall automatically be deemed to be revoked. 
 (d) Voluntary Termination for Good Reason. “Voluntary Termination for Good Reason” shall mean the Executive voluntarily resigns after the occurrence of any of the following (i) without the Executive’s express
written consent, a material reduction of the Executive’s duties, title, authority or responsibilities, relative to the Executive’s duties, title, authority or responsibilities as in effect immediately prior to such reduction, or the
assignment to Executive of such reduced duties, title, authority or responsibilities; provided, however, that a reduction in duties, title, authority or responsibilities solely by virtue of the Company being acquired and made part of a 

 

 -5- 

 larger entity (as, for example, when the senior vice-president of a business unit of the Company remains as such
following a Change of Control) shall not by itself constitute grounds for a “Voluntary Termination for Good Reason;” (ii) without the Executive’s express written consent, a material reduction, without good business reasons, of
the facilities or perquisites (including office space and location) available to the Executive immediately prior to such reduction; (iii) a reduction by the Company in the base salary of the Executive as in effect immediately prior to such
reduction; (iv) a material reduction by the Company in the aggregate level of employee benefits, including bonuses, to which the Executive was entitled immediately prior to such reduction with the result that the Executive’s aggregate
benefits package is materially reduced (other than a reduction that generally applies to Company employees); (v) the relocation of the Executive to a facility or a location outside Santa Clara, Alameda or San Mateo counties without the
Executive’s express written consent; (vi) the failure of the Company to obtain the assumption of this agreement by any successors contemplated in Section 8 below; or (vii) any act or set of facts or circumstances which would,
under California case law or statute constitute a constructive termination of the Executive. In addition, upon any such voluntary termination the Executive must provide notice to the Company of the existence of the one or more of the above
conditions within ninety (90) days of its initial existence and the Company must be provided at least thirty (30) days to remedy the condition. 
 7. Non-Solicitation 
 (a) Non-Solicitation. Until the date one year after the termination of
Executive’s employment with the Company for any reason, Executive agrees and acknowledges that Executive’s right to receive and retain the severance payments and benefits set forth in Section 4 (to the extent Executive is otherwise
entitled to such payments) shall be conditioned upon Executive neither directly nor indirectly soliciting, inducing, recruiting or encouraging an employee to leave his or her employment either for Executive or for any other entity or person with
which or whom Executive has a business relationship. 
 (b) Understanding of Covenant. Executive represents that he (i) is
familiar with the foregoing covenant not to solicit, and (ii) is fully aware of his obligations hereunder, including, without limitation, the reasonableness of the length of time, scope and geographic coverage of the covenant. 
 (c) Remedy for Breach. Upon any breach of this section by Executive, all severance payments and benefits pursuant to this Agreement shall
immediately cease and any stock options or stock appreciation rights then held by Executive shall immediately terminate and be without further force and effect, and Executive shall be required to reimburse the Company any lump-sum severance payment
previously paid under Section 4 and the value of any COBRA reimbursements previously paid under Section 4 hereunder. The Company may also seek to enjoin Executive from any continued breach. 
 8. Assignment. This Agreement shall be binding upon and inure to the benefit of (a) the heirs, beneficiaries, executors and legal
representatives of Executive upon Executive’s death and (b) any successor of the Company. Any such successor of the Company shall be deemed substituted for the Company under the terms of this Agreement for all purposes. As used herein,
“successor” shall include any person, firm, corporation or other business entity which at any time, whether by 
  

 -6- 

 purchase, merger or otherwise, directly or indirectly acquires all or substantially all of the assets or business of the
Company. None of the rights of Executive to receive any form of compensation payable pursuant to this Agreement shall be assignable or transferable except through a testamentary disposition or by the laws of descent and distribution upon the death
of Executive. Any attempted assignment, transfer, conveyance or other disposition (other than as aforesaid) of any interest in the rights of Executive to receive any form of compensation hereunder shall be null and void. 
 9. Notices. All notices, requests, demands and other communications called for hereunder shall be in writing and shall be deemed given if
(i) delivered personally or by facsimile, (ii) one (1) day after being sent by Federal Express or a similar commercial overnight service, or (iii) three (3) days after being mailed by registered or certified mail, return
receipt requested, prepaid and addressed to the parties or their successors in interest at the following addresses, or at such other addresses as the parties may designate by written notice in the manner aforesaid: 
  

			
	If to the Company:	    	3PAR, Inc.
		    	4245 Technology Drive
		    	Fremont, CA 94538
		    	Attn: Non-Executive Chairman of the Board
		
	If to Executive:	    	David C-A Scott
		    	at the last residential address known by the Company.

 10. Severability. In the event that any provision hereof becomes or is declared by a court
of competent jurisdiction to be illegal, unenforceable or void, this Agreement shall continue in full force and effect without said provision. 
 11. Entire Agreement. This Agreement, the Executive’s equity compensation agreements and the Confidential Information Agreement represent the entire agreement and understanding between the Company and Executive concerning
Executive’s employment relationship with the Company. This Agreement supersedes and replaces in its entirety the Employment Agreement between the Company and Executive dated January 12, 2001. 
 12. Dispute Resolution. 
 (a) The
parties shall first meet to settle any dispute through good faith negotiation or non-binding mediation. If not settled by good faith negotiation or non-binding mediation between the parties within 30 days from the date one party requests in writing
to meet the other party, then to the extent permitted by law, any dispute or controversy arising out of, relating to, or in connection with this Agreement, or the interpretation, validity, construction, performance, breach, or termination thereof
shall be finally settled by binding arbitration to be held in Santa Clara County, California, in accordance with the National Rules for the Resolution of Employment Disputes then in effect of the American Arbitration Association (the
“Rules”). The arbitrator may grant injunctions or other relief in such dispute or controversy. The decision of the arbitrator shall be confidential, final, conclusive and binding on the parties to the arbitration. Judgment may be entered
under a protective order on the arbitrator’s decision in any court having jurisdiction. The Company shall pay all costs of any mediation or arbitration; provided, however, that each party shall pay its own attorney and advisor fees. 

 

 -7- 

 (b) The arbitrator shall apply California law to the merits of any dispute or claim, without reference to
rules of conflict of law. The arbitration proceedings shall be governed by federal arbitration law and by the Rules, without reference to state arbitration law. Executive hereby expressly consents to the personal jurisdiction of the state and
federal courts located in California for any action or proceeding arising from or relating to this Agreement and/or relating to any arbitration in which the parties are participants. 
 (c) Executive understands that nothing in Section 12 modifies Executive’s at-will status. Either the Company or Executive can terminate the
employment relationship at any time, with or without cause. 
 (d) EXECUTIVE HAS READ AND UNDERSTANDS SECTION 12, WHICH DISCUSSES ARBITRATION.
EXECUTIVE UNDERSTANDS THAT BY SIGNING THIS AGREEMENT, EXECUTIVE AGREES, TO THE EXTENT PERMITTED BY LAW, TO SUBMIT ANY FUTURE CLAIMS ARISING OUT OF, RELATING TO, OR IN CONNECTION WITH THIS AGREEMENT, OR THE INTERPRETATION, VALIDITY, CONSTRUCTION,
PERFORMANCE, BREACH, OR TERMINATION THEREOF TO BINDING ARBITRATION, AND THAT THIS ARBITRATION CLAUSE CONSTITUTES A WAIVER OF EXECUTIVE’S RIGHT TO A JURY TRIAL AND RELATES TO THE RESOLUTION OF ALL DISPUTES RELATING TO ALL ASPECTS OF THE
EMPLOYER/EMPLOYEE RELATIONSHIP. 
 13. No Oral Modification, Cancellation or Discharge. This Agreement may only be amended, canceled
or discharged in writing signed by Executive and a majority of the Board of Directors. 
 14. Withholding. The Company shall be
entitled to withhold, or cause to be withheld, from payment any amount of withholding taxes required by law with respect to payments made to Executive in connection with his employment hereunder. 
 15. Governing Law. This Agreement shall be governed by the laws of the State of California. 
 16. Effective Date. This Agreement is effective upon the date it has been executed by both parties. 
 17. Acknowledgment. Executive acknowledges that he has had the opportunity to discuss this matter with and obtain advice from his private
attorney, has had sufficient time to, and has carefully read and fully understands all the provisions of this Agreement, and is knowingly and voluntarily entering into this Agreement. 
  

 -8- 

 IN WITNESS WHEREOF, the undersigned have executed this Agreement: 
  

	
	3PAR, Inc.
	
	 /s/ Kevin Fong

	Kevin Fong
	Non-Executive Chairman of the Board

  

	
	EXECUTIVE
	
	 /s/ David C. Scott

	David C. Scott

 Date: July 30, 2007

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00128-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00128-of-00352.parquet"}]]