Document:

Exhbiti 10.1

Exhibit 10.1

SETTLEMENT AND REDEMPTION AGREEMENT

THIS SETTLEMENT AND REDEMPTION AGREEMENT (this “Agreement”), dated as of August 19,
2011, effects settlement and release of claims and disputes among (a) GTSI Corp., a Delaware
corporation (“GTSI”), (b) The Eyak Corporation, a corporation organized under the laws of
the State of Alaska in accordance with the Alaska Native Claims Settlement Act (“Eyak”),
(c) Global Technology Group, LLC, an Alaska limited liability company (“Global” and,
together with Eyak, the “Continuing Members”), and (d) Eyak Technology, LLC, a Delaware
limited liability company (the “Company”), as well as the redemption of GTSI’s limited
liability company interests in the Company and the resolution of any claims, known or unknown,
between the Parties and their affiliates. The Company, GTSI and the Continuing Members may
hereinafter be referred to individually as a “Party” or collectively as the
“Parties.”

R E C I T A L S

A. The Company was formed pursuant to a Certificate of Formation filed with the Secretary of
State of the State of Delaware on January 2, 2002. The Company is governed by the Amended
Operating Agreement of the Company, dated as of June 14, 2002 (the “Operating Agreement”).

B. GTSI owns a thirty-seven percent (37%) Percentage Interest (as defined in the Operating
Agreement) in the Company (the “GTSI Interest”). The Continuing Members own the remaining
Percentage Interests in the Company.

C. Pursuant to Section 10.2 of the Operating Agreement, GTSI desires to sell and the Company
desires to redeem, purchase and acquire the GTSI Interest, all in accordance with the terms and
conditions of this Agreement (the “Redemption”). Following the Redemption, the Continuing
Members will continue as members of the Company.

D. Eyak currently owns 100 shares of the common stock of GTSI and by letters dated November 1,
2010 and June 24, 2011 to GTSI from Eyak’s counsel (collectively, the “Shareholder
Demands”), Eyak demanded specific action by GTSI’s board of directors with respect to the
Company (the “Derivative Claims”).

E. The Company, the Continuing Members and GTSI are parties to an arbitration proceeding
before the American Arbitration Association (“AAA”), entitled Eyak Technology, LLC v. GTSI
Corp., Case No. 75 117 00388 which remains pending (the “Arbitration”).

F. The Company, the Continuing Members, GTSI, Keith Gordaoff, Sylvia Lange, Jim Ujioka, Rod
Worl and Quang Le are parties to an action pending in the Court of Chancery of the State of
Delaware entitled GTSI Corp. v. Eyak Technology, LLC, et al., Civil Action No. 5815-VCL (the
“Chancery Court Action” and, together with the Arbitration, the “Settled
Litigation”).

G. The Company, the Continuing Members and GTSI have each made various demands of each other,
including demands regarding the conduct of business, the operations of their respective boards of
directors, Freedom of Information Act (“FOIA”) demands and requests pursuant to the
Operating Agreement (collectively, the “Demands”).

 

 

 

H. The Parties desire to release, settle, resolve and otherwise completely dispose of all
claims and disputes regarding all matters raised in the Derivative Claims, the Settled Litigation
and the Demands (collectively, the “Disputes”).

NOW, THEREFORE, in consideration of the promises and the respective representations,
warranties and covenants hereinafter set forth, and other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, and intending to be legally bound, the
Parties hereby incorporate the Recitals set forth above and agree as follows:

1. Purchase of the GTSI Interest.

1.1 Purchase Price. The Company hereby agrees to pay directly to GTSI the total
amount of Twenty Million Dollars ($20,000,000), in cash (the “Purchase Price”) for the GTSI
Interest and all rights of GTSI under the Operating Agreement. The Purchase Price shall be paid by
the Company to GTSI by wire transfer on the Closing Date (as defined in Section 9 hereof).

1.2 Redemption, Purchase and Sale of the GTSI Interest. For and in consideration of
the payment of the Purchase Price, upon the Closing, (i) GTSI shall sell, assign, transfer, and
deliver to the Company, and (ii) the Company shall redeem and purchase from GTSI, GTSI’s entire
right, title, and interest in and to the GTSI Interest and all rights and obligations of GTSI under
the Operating Agreement. The GTSI Interest and the rights and obligations under the Operating
Agreement shall be transferred by GTSI free and clear of any and all liabilities, liens, pledges,
claims, mortgages, deeds of trust, collateral assignments, security interests, litigations,
options, calls, contracts, conditional or other sales agreements and encumbrances whatsoever and of
any and all other claims (collectively, “Liens”). The Redemption shall become effective
upon receipt of the Purchase Price by GTSI. The Parties acknowledge and agree that upon the
Redemption, (i) all rights, interests and claims of GTSI arising from the GTSI Interest, including,
without limitation, any right to distributions now existing or that may hereafter arise pursuant to
Section 4 of the Operating Agreement and all other rights under the Operating Agreement, shall be
transferred, sold and assigned to the Company and GTSI shall cease to have any right thereto or
otherwise, and (ii) any past, existing and future obligations of GTSI under the Operating Agreement
shall cease and be extinguished.

2. Releases.

2.1 Release of GTSI. Effective upon the Closing, the Continuing Members and the
Company, for themselves and their respective successors and assigns, irrevocably and expressly
release and discharge fully and forever GTSI and its Related Parties (collectively, the “GTSI
Releasees”) from any and all claims, demands, damages, lawsuits, and causes of action, whether
known, unknown or unforeseen, arising on or before the Closing Date, which any of the Continuing
Members or the Company has, or may have, against the GTSI Releasees for any reason whatsoever in
law or in equity, under federal, state, or other law, whether the same be upon statutory claim,
contract, tort or other basis arising out of or relating to (i) the Disputes; (ii) any and all
obligations of the GTSI Releasees under the Operating Agreement, the Mentor-Protégé Agreement, or
any other agreement between or among any of the Parties concerning any Party’s interests in or
relationship with the Company; (iii) any claim, allegation or cause of action, whether direct or
derivative, that was or could have been raised in the Disputes; (iv) any claim or cause of action,
whether direct or derivative, arising from or relating to the operations of the Company or any
Party’s Percentage Interest in the Company; (v) any other fiduciary duties
that any of the GTSI Releasees may owe to the Company or either of the Continuing Members;
(vi) any request pursuant to FOIA or any equivalent request for information from any government
agency naming any GTSI Releasee or requesting information relating to any GTSI Releasee; and (vii)
any claim alleging violations of federal or state securities laws, common-law fraud or deceit;
provided, however, that the release herein shall not apply to or affect (x) any
GTSI Releasee’s obligations under this Agreement, (y) the Confidentiality Agreement, dated April 7,
2011 (the “April Confidentiality Agreement”), or the Confidentiality Agreement, dated July
22, 2011 (the “July Confidentiality Agreement” and together with the April Confidentiality
Agreement, the “Confidentiality Agreements”), or (z) the Confidentiality Order, entered by
the Arbitrator in the Arbitration (the “Confidentiality Order”), and shall not release any
Party’s obligation not to disclose documents or information under any of the Confidentiality
Agreements or the Confidentiality Order.

 

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2.2 Release of the Continuing Members and the Company. Effective upon the Closing,
GTSI, for itself and its respective successors and assigns, irrevocably and expressly releases and
discharges fully and forever the Continuing Members, the Company and each of their respective
Related Parties (collectively, the “Company Releasees”) from any and all claims, demands,
damages, lawsuits, and causes of action, whether known, unknown or unforeseen, arising on or before
the Closing Date, which GTSI has, or may have, against the Company Releasees for any reason
whatsoever in law or in equity, under federal, state, or other law, whether the same be upon
statutory claim, contract, tort or other basis arising out of or relating to (i) the Disputes; (ii)
any and all obligations of the Company Releasees under the Operating Agreement, the Mentor-Protégé
Agreement, or any other agreement between or among any of the Parties concerning any Party’s
interests in or relationship with the Company; (iii) any claim, allegation or cause of action,
whether direct or derivative, that was or could have been raised in the Disputes; (iv) any claim or
cause of action, whether direct or derivative, arising from or relating to the operations of the
Company or any Party’s Percentage Interest in the Company; (v) any other fiduciary duties that any
of the Company Releasees may owe to GTSI; (vi) any request pursuant to FOIA or any equivalent
request for information from any government agency naming any Company Releasee or requesting
information relating to any Company Releasee, including without limitation GTSI’s FOIA requests,
filed on October 5, 2010 and November 9, 2010, respectively (the “Initial Requests”); and
(vii) any claim alleging violations of federal or state securities laws, common-law fraud or
deceit; provided, however, that the release herein shall not apply to or affect (x)
any Company Releasee’s obligations under this Agreement, (y) the Confidentiality Agreements, or (z)
the Confidentiality Order, and shall not release any Party’s obligation not to disclose documents
or information under any of the Confidentiality Agreements or the Confidentiality Order.

2.3 Release of Derivative Claims. Effective upon the Closing, Eyak, for itself and
its successors and assigns, withdraws its Shareholder Demands and irrevocably and expressly
releases and discharges fully and forever the GTSI Releasees from any and all claims, demands,
damages, law suits and causes of action, whether known, unknown or unforeseen, arising on or before
the Closing Date, which Eyak has, or may have, against the GTSI Releasees for (i) any claim,
whether direct or derivative, arising from or in connection with Eyak’s ownership of the common
stock of GTSI, the Shareholder Demands or the Derivative Claims, (ii) any claim, allegation or
cause of action, whether direct or derivative, that was or could have been raised in the
Shareholder Demands or the Derivative Claims, and (iii) any other stockholder claim or cause of
action, whether direct or derivative, arising from or relating to the operations of GTSI.

2.4 Related Parties. “Related Parties” means, with respect to any Party, such
Party’s subsidiaries, shareholders (excluding, with respect to GTSI, Eyak), employees,
representatives, attorneys, advisors, successors and present and former directors and officers.

 

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3. Dismissal of Disputes.

3.1 Immediately following the Closing, each of GTSI, the Continuing Members and the Company
shall dismiss with prejudice, and without any award of costs or attorneys’ fees to either side, the
Arbitration, and shall file with AAA the motion to dismiss, in the form attached hereto as
Exhibit A. Each Party shall bear its own attorneys’ fees and expenses and shall be
responsible for its share of any outstanding fees or costs due to AAA in connection with the
Arbitration.

3.2 Immediately following the Closing, Eyak hereby agrees to direct its attorneys to execute
and deliver to GTSI a letter in the form attached hereto as Exhibit B and shall cease all
activity, preparation and actions that would result in the filing or pursuit of the Derivative
Claims.

3.3 Immediately following the Closing, each of GTSI, the Continuing Members and the Company
hereby agree to dismiss with prejudice, and without any award of costs or attorneys’ fees to either
side, the Chancery Court Action, and shall file the stipulation of dismissal and executed versions
of the associated waivers of notice and consents of each of GTSI, Eyak and Global in the form
attached hereto as Exhibit C. The Company agrees to obtain the consent of Keith Gordaoff,
Sylvia Lange, Jim Ujioka, Rod Worl and Quang Le to this dismissal of the Chancery Court Action.

3.4 Each Party waives any right to challenge, appeal or otherwise seek to overturn any
decision rendered in the Settled Litigation.

4. Confidentiality. Each of the Parties agrees that it will keep the negotiation and
provisions of this Agreement and all correspondence and discussion with respect to the Disputes in
strictest confidence and that it will not, without the prior written approval of the other Parties,
make any press release or other public announcement concerning the transactions contemplated hereby
that is inconsistent in any material respect with the scope and content of the press release and
the Current Report on Form 8-K prepared by GTSI and reviewed and approved by the Company prior to
the date hereof (such documents, the “GTSI Release and 8-K”) and the press release prepared
by the Company and reviewed and approved by GTSI prior to the date hereof (such document, the
“Company Release”), except that (a) the Parties may disclose this Agreement and information
related hereto in confidence to their respective attorneys, accountants, auditors, tax preparers
and financial advisors (such persons to treat this Agreement and any such information
confidentially in accordance with this Section 4 and such disclosing Party to be responsible for
any breach hereof by any such person), (b) the Parties may disclose this Agreement and other
information related thereto as necessary to fulfill applicable government, public company reporting
and any other legally required obligations, including, without limitation, disclosure to the
Securities and Exchange Commission (the “SEC”) and the U.S. Small Business Administration
(“SBA”) and each of the respective representatives of any such government agency, and to
make presentations to and to respond to questions by stockholders, lenders, analysts, or similar
parties, in all cases consistent in all material respects with the scope and content of the GTSI
Release and 8-K and the Company Release, (c) the Parties may disclose this Agreement and
information related hereto insofar as such disclosure
may be necessary to enforce its terms, and (d) the Parties may disclose this Agreement and
information related hereto to the extent necessary or appropriate (x) based on any request, demand
or subpoena from a government authority, and (y) in connection with disclosure obligations relating
to bids and proposals of a Party or any of its subsidiaries. Notwithstanding anything to the
contrary set forth herein, any and all financial information regarding the Company or either of the
Continuing Members disclosed to GTSI pursuant to the Confidentiality Agreements or the
Confidentiality Order shall be governed by the July Confidentiality Agreement and the
Confidentiality Order.

 

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5. No Reliance. Each Party acknowledges that, with respect to every aspect of this
Agreement, including but not limited to the Redemption, the releases contemplated by Section 2
hereof, and the dismissals and covenants contemplated by Section 3 and Section 10 hereof, each
Party has relied solely and exclusively on the advice and assistance of its own attorneys and other
advisors and that it has not and is not relying on the statements, representations or documents
provided by the other Parties unless specifically identified in Section 6, Section 7 or Section 8
(as applicable) below.

6. Representations and Warranties of the Company. The Company represents and warrants
as of the date hereof to GTSI as follows:

6.1 Power and Authority. The Company is a limited liability company duly organized,
validly existing and in good standing under the laws of the State of Delaware. The Company has the
full limited liability company power and authority to (a) execute and deliver this Agreement, (b)
perform its obligations hereunder, (c) redeem, purchase and receive from GTSI the GTSI Interest,
(d) fulfill the obligations imposed herein upon the Company, and (e) consummate the transactions
contemplated herein.

6.2 Authorization. The execution, delivery and performance of this Agreement by the
Company, and the Company’s consummation of the transactions contemplated hereby, have been approved
by (i) all of the members of the Company other than GTSI and (ii) the Board (as defined in the
Operating Agreement).

6.3 Enforceability. This Agreement constitutes the legal, valid, and binding
obligation of the Company, enforceable against the Company in accordance with its terms.

6.4 Insolvency. The Company is not insolvent and will not become insolvent as a
result of entering into this Agreement and fulfilling its obligations hereunder.

6.5 No Conflicts. The execution, delivery and performance of this Agreement by the
Company do not and will not (i) result in a violation of any law applicable to the Company, or (ii)
result in a material breach of, conflict with or default under, any term or provision of any note,
mortgage, bond, security agreement, loan agreement, guaranty, pledge or other instrument, contract,
agreement or commitment to which the Company is a party or by which the Company or any of the
Company’s assets or properties, are subject or bound.

6.6 Acknowledgement. The Company acknowledges that the Purchase Price was determined
by arms’ length negotiations between the Parties.

 

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6.7 New Contracts. Since June 30, 2011 through the business day immediately preceding
the Closing Date, (i) the Company has not been awarded any new prime contract vehicles by the U.S.
government or any instrumentality thereof; (ii) the Company has not been awarded any individual
task order under prime contract vehicles that existed prior to June 30, 2011 by the U.S. government
or any instrumentality thereof in excess of $1,600,000 and (iii) the Company has not entered into
new subcontract arrangements with prime contractors (excluding teaming agreements entered into in
the ordinary course of business); provided that the Company was party to a teaming
agreement with a prime contractor that was awarded by the U.S. Department of Veteran Affairs
Veterans Affairs Transformation Twenty-One Total Technology Acquisition Program in July 2011.

6.8 No Inducements. Neither GTSI nor any other party has made any oral or written
representation, inducement, promise or agreement to the Company in connection with the matters
herein, other than as expressly set forth in this Agreement, and in entering into this Agreement,
the Company is not relying upon any representation or statement of fact not expressly set forth in
this Agreement.

6.9 FOIA Requests. There are no pending requests by or on behalf of the Company or
any of its subsidiaries for information or documents relating to any GTSI Releasee pursuant to FOIA
or any equivalent claims for information from any government agency.

6.10 Disclaimer. Except as expressly set forth in this Section 6, none of the
Company, nor (except as set forth in Section 7, as to the Continuing Members) any of the Company’s
Related Parties, nor any person or entity acting on behalf of any of them, nor any of their
respective affiliates, makes any representation or warranty of any kind, express or implied, at law
or in equity.

7. Representations and Warranties of the Continuing Members. Each of the Continuing
Members hereby represents and warrants, severally, but not jointly, to GTSI as of the date hereof
as follows:

7.1 Power and Authority. Eyak is duly organized, validly existing and in good
standing under the laws of the State of Alaska in accordance with the Alaska Native Claims
Settlement Act and has full corporate power and authority to (a) execute and deliver this
Agreement, (b) perform its obligations hereunder, (c) fulfill the obligations imposed herein upon
Eyak, and (d) consummate the transactions contemplated herein. Global is duly organized, validly
existing and in good standing under the laws of the State of Alaska and has full corporate power
and authority to (a) execute and deliver this Agreement, (b) perform its obligations hereunder, (c)
fulfill the obligations imposed herein upon Global, and (d) consummate the transactions
contemplated herein.

7.2 Authorization. The execution, delivery and performance of this Agreement by Eyak,
and Eyak’s consummation of the transactions contemplated hereby, have been duly authorized by all
requisite corporate or other action of Eyak. The execution, delivery and performance of this
Agreement by Global, and Global’s consummation of the transactions contemplated hereby, have been
duly authorized by all requisite corporate or other action of Global.

 

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7.3 Enforceability. This Agreement constitutes the legal, valid, and binding
obligation of each of the Continuing Members, enforceable against each of the Continuing Members in
accordance with its terms.

7.4 No Conflicts. The execution, delivery and performance of this Agreement by each
of the Continuing Members do not and will not (i) result in a violation of any law applicable to
such Continuing Member, or (ii) result in a material breach of, conflict with or default under, any
term or provision of any note, mortgage, bond, security agreement, loan agreement, guaranty, pledge
or other instrument, contract, agreement or commitment to which such Continuing Member is a party
or by which such Continuing Member or any of such Continuing Member’s assets or properties are
subject or bound.

7.5 No Inducements. Neither GTSI nor any other party has made any oral or written
representation, inducement, promise or agreement to the Continuing Members in connection with the
matters herein, other than as expressly set forth in this Agreement, and in entering into this
Agreement, the Continuing Members are not relying upon any representation or statement of fact not
expressly set forth in this Agreement.

7.6 Disclaimer. Except as expressly set forth in this Section 7, none of the
Continuing Members, nor (except as set forth in Section 6, as to the Company) any of the Continuing
Members’ Related Parties, nor any person or entity acting on behalf of any of them, nor any of
their respective affiliates, makes any representation or warranty of any kind, express or implied,
at law or in equity.

8. Representations and Warranties of GTSI. GTSI hereby represents and warrants to the
Continuing Members and the Company as of the date hereof as follows:

8.1 Power and Authority. GTSI is a corporation duly organized, validly existing and
in good standing under the laws of the State of Delaware. GTSI has full corporate power and
authority to (a) execute and deliver this Agreement, (b) perform its obligations hereunder, (c)
sell, assign, transfer and deliver the GTSI Interest to the Company, (d) fulfill the obligations
imposed herein upon GTSI, and (e) consummate the transactions contemplated herein.

8.2 Authorization. The execution, delivery and performance of this Agreement by GTSI,
and GTSI’s consummation of the transactions contemplated hereby, have been duly authorized by all
requisite corporate or other action of GTSI, including by GTSI’s Board of Directors.

8.3 Enforceability. This Agreement constitutes the legal, valid, and binding
obligation of GTSI, enforceable against GTSI in accordance with its terms.

8.4 No Inducements. None of the Company or the Continuing Members or any other party
has made any oral or written representation, inducement, promise or agreement to GTSI in connection
with the matters herein, other than as expressly set forth in this Agreement, and in entering into
this Agreement, GTSI is not relying upon any representation or statement of fact not expressly set
forth in this Agreement.

 

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8.5 Ownership of the GTSI Interest. GTSI is the sole owner and holder of, and has the
full and entire right, title, and interest in and to the GTSI Interest to be redeemed, purchased
and
sold hereunder, free and clear of any and all Liens, which GTSI Interest constitutes (a) one
hundred percent (100%) of all of the limited liability company interests of the Company owned by
GTSI and its Related Parties (excluding persons and entities that are Related Parties of GTSI
solely by reason of being employees or shareholders of GTSI), and (b) a thirty-seven percent (37%)
Percentage Interest (as defined in the Operating Agreement) of the Company. Other than the GTSI
Interest, GTSI neither owns nor holds any other interest in the Company or any affiliate of the
Company (other than GTSI and its subsidiaries), nor does GTSI have any other right (whether or not
currently exercisable) thereto.

8.6 FOIA Requests. Other than the Initial Requests, there are no pending requests by
or on behalf of GTSI or any of its subsidiaries for information or documents relating to any
Company Releasee pursuant to FOIA or any equivalent claims for information from any government
agency.

8.7 Insolvency. GTSI is not insolvent and will not become insolvent as a result of
entering into this Agreement and fulfilling its obligations hereunder.

8.8 No Conflicts. The execution, delivery and performance of this Agreement by GTSI
do not and will not (i) result in a violation of any law applicable to GTSI, or (ii) result in a
material breach of, conflict with or default under, any term or provision of any note, mortgage,
bond, security agreement, loan agreement, guaranty, pledge or other instrument, contract, agreement
or commitment to which GTSI is a party or by which GTSI or any of GTSI’s assets or properties are
subject or bound.

8.9 Certain Acknowledgements. GTSI acknowledges that it has conducted its own
independent review and analysis of and, based thereon, has formed an independent judgment
concerning, the GTSI Interest, the value of the GTSI Interest, and the business, assets, condition,
operations and prospects of the Company. GTSI, or its advisors, has been afforded the opportunity
to conduct due diligence on the Company and has been provided with information and materials they
deem sufficient to evaluate the merits of the Redemption and the other transactions contemplated
hereby. GTSI is a publicly-traded company and each of GTSI and its financial advisors has the
expertise, knowledge and experience in financial and business matters to enable it to utilize the
information made available to it in connection with the Redemption and the other transactions
contemplated hereby, to evaluate the merits and risks of the Redemption and the other transactions
contemplated hereby, and to make an informed decision with respect thereto and such an evaluation
and informed decision has been made. With respect to any estimate, projection, budget or forecast
delivered by or on behalf of the Company and/or either Continuing Member to GTSI related to the
GTSI Interest or the business of the Company, GTSI acknowledges that (i) there are uncertainties
inherent in attempting to make such estimates, projections, budgets and forecasts, (ii) GTSI is
aware that actual results may differ materially, and (iii) none of the Company or either Continuing
Member makes or shall be deemed to have made any representation or warranty with respect to any
such estimate, projection, budget or forecast or otherwise.

8.10 Disclaimer. Except as expressly set forth in this Section 8, none of GTSI, nor
any of GTSI’s Related Parties, nor any person or entity acting on behalf of any of them, nor any of
their respective affiliates, makes any representation or warranty of any kind, express or implied,
at law or in equity.

 

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9. Closing Date. The closing hereunder shall take place simultaneous with the
execution of this Agreement in McLean, Virginia (the “Closing”, and the date thereof, the
“Closing Date”) and may take place by conference call. At the time of the Closing and as a
condition to the obligations of the Company and the Continuing Members hereunder, GTSI shall
deliver to the Company and the Continuing Members a copy of the opinion received from its financial
advisor that purchase of the GTSI Interest by the Company is fair from a financial point of view to
the shareholders of GTSI; provided that such opinion may not be relied upon by the Company
or the Continuing Members and the Company, the Continuing Members and their respective
representatives shall keep the contents of such opinion confidential in accordance with the terms
of Section 4 hereof. To the extent permitted by applicable law and GAAP, the Parties will treat
the Closing as being effective as of 11:59 p.m. on the Closing Date.

10. Warranty and Covenant Not to Sue. Each Party warrants that only it owns the
claims being released by such Party herein, and that no assignment or subrogation of such claim has
been made by such Party. Except with respect to disputes arising from a breach of this Agreement,
the July Confidentiality Agreement or the Confidentiality Order, each Party agrees not to file,
charge, claim, sue, or cause or permit to be filed, charged, or claimed any action for any form of
relief, whether in law or equity, against any other Party relating to, arising out of, or based on
the subject matter of any of the claims released pursuant to Section 2 of this Agreement.

11. No Admission. The Parties agree that this Agreement is executed by the Parties to
compromise disputed claims and that the existence of this Agreement shall not constitute, or be
construed as, an admission of any violation or breach of any agreement, law, order, ordinance,
regulation or enactment, or of wrongdoing of any kind by any Party, and each Party specifically
denies any such violation or wrongdoing on its part.

12. Return of Documents; Continuation of Confidentiality Obligations.

12.1 Promptly upon occurrence of the dismissals contemplated by Section 3 hereof, each Party
shall return to each other Party or certify in writing that it has destroyed any information
obtained from each such other Party, whether pursuant to discovery or either of the Confidentiality
Agreements, excluding any documents obtained through the Initial Requests. Each Party’s
obligations not to disclose information under the Confidentiality Agreements and the
Confidentiality Order shall survive this Agreement. None of the foregoing shall prevent a Party
from retaining copies or electronic versions of any document filed with the Arbitrator or the
Delaware Court of Chancery, or used in connection with the preparation, issuance or Board
consideration of the fairness opinion provided to GTSI.

12.2 The Parties hereby agree that the July Confidentiality Agreement shall be deemed to have
superseded the April Confidentiality Agreement and that all information provided under the April
Confidentiality Agreement shall be governed by and subject to the July Confidentiality Agreement.
All information provided by the Company under either of the Confidentiality Agreements shall be
subject to and used in accordance with the terms of the July Confidentiality Agreement.

 

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13. Non-Disparagement.

13.1 From the Closing Date until the three (3) year anniversary thereof, the Company and the
Continuing Members each agree that none of their respective officers or directors will engage in
any conduct that involves the making or publishing of written or oral statements or remarks
(including, without limitation, the repetition or distribution of derogatory rumors, allegations,
negative reports or comments) that are directly or indirectly disparaging or damaging to the
integrity, reputation or good will of GTSI or any of its officers, directors or subsidiaries. This
provision is not applicable to statements made in connection with (i) enforcement of this
Agreement, (ii) truthful testimony obtained through subpoena, (iii) truthful information provided
pursuant to investigation or request by any governmental body, including, without limitation,
truthful disclosure to the SEC, the SBA, the Department of Justice and respective representatives
of such agencies and truthful information disclosed to fulfill applicable public company disclosure
obligations and disclosure obligations in connection with bids and proposals of the Company or any
of its subsidiaries, and (iv) presentations to and to responses made to questions by stockholders,
lenders and analysts and similar parties, all such disclosures in accordance with Section 4 hereof.

13.2 From the Closing Date until the three (3) year anniversary thereof, GTSI agrees that none
of its officers or directors will engage in any conduct that involves the making or publishing of
written or oral statements or remarks (including, without limitation, the repetition or
distribution of derogatory rumors, allegations, negative reports or comments) that are directly or
indirectly disparaging or damaging to the integrity, reputation or good will of any of the Company
or the Continuing Members or any of their respective officers, directors or subsidiaries. This
provision is not applicable to statements made in connection with (i) enforcement of this
Agreement, (ii) truthful testimony obtained through subpoena, (iii) truthful information provided
pursuant to investigation or request by any governmental body, including, without limitation,
truthful disclosure to the SEC, the SBA, the Department of Justice and respective representatives
of such agencies and truthful information disclosed to fulfill applicable public company disclosure
obligations and disclosure obligations in connection with bids and proposals of GTSI or any of its
subsidiaries, and (iv) presentations to and to responses made to questions by stockholders, lenders
and analysts and similar parties, all such disclosures in accordance with Section 4 hereof.

14. FOIA.

14.1 For a period of three (3) years after the Closing, the Company agrees that it and its
subsidiaries and representatives (on its behalf) shall not, directly or indirectly, make or pursue
any request pursuant to FOIA or any equivalent request for information from any government agency
naming any GTSI Releasee or requesting information relating to any GTSI Releasee; provided,
however, that if in connection with any governmental investigation of or third party legal
proceeding against the Company, which was first discovered (including any investigation by a
government agency or of occurrences or circumstances, in each case not currently known by the
Company) following the Closing, the Company determines, based upon advice of counsel, that
obtaining documents covered by the preceding clause could lead to relevant information that could
assist in its defense, then the Company may file a FOIA request to pursue such documents, after
prior written notice to GTSI, which notice shall include a copy of such FOIA request.

 

-10-

 

14.2 GTSI and its subsidiaries agree not to appeal or continue to pursue requests, documents,
claims or actions under the Initial Requests. For a period of three (3) years after the Closing,
GTSI agrees that it and its subsidiaries and representatives (on its behalf) shall not, directly or
indirectly, make or pursue any request pursuant to FOIA or any equivalent request for information
from any government agency naming any Company Releasee or requesting information relating to any
Company Releasee; provided, however, that if in connection with any governmental
investigation of or third party legal proceeding against GTSI, which was first discovered
(including any investigation by a government agency or of occurrences or circumstances, in each
case not currently known by GTSI) following the Closing, GTSI determines, based upon advice of
counsel, that obtaining documents covered by the preceding clause could lead to relevant
information that could assist in its defense, then GTSI may file a FOIA request to pursue such
documents, after prior written notice to the Company, which notice shall include a copy of such
FOIA request.

15. Tax and Financial Matters.

15.1 The Company and the Continuing Members agree to cause the Company to close its books as
of the close of business on the Closing Date so as to determine the share of each Member’s (as
defined in the Operating Agreement) (including GTSI) profits or losses for the period from January
1, 2011 through the Closing Date.

15.2 The Company shall engage Aronson LLC to perform an audit of financial statements of the
Company for the period from January 1, 2011 through the close of business on the Closing Date. The
Company shall make such audited financial statements available to GTSI within ninety (90) days
after the Closing for inclusion in GTSI’s financial statements and Form 10-K filing with the SEC.

16. General Provisions.

16.1 Expenses. Each Party shall pay all of its own costs and expenses (including
attorneys’ and accountants’ fees and other out-of-pocket expenses) in connection with the
prosecution of the Settled Litigation, the pursuit or defense of the Disputes, the negotiation and
execution of this Agreement, the performance of its obligations hereunder and the consummation of
the transactions contemplated hereby.

16.2 Amendment and Waiver. No amendment, modification or waiver of any of the
provisions of this Agreement shall be effective against any Party unless such modification,
amendment or waiver is approved in writing by such Party. No course of dealing between the Parties
or any delay in exercising any rights hereunder shall operate as a waiver of any rights.

16.3 Parties in Interest; Successors and Assigns. No Party may assign this Agreement
without the prior written consent of the other Parties. This Agreement shall be binding upon and
shall inure to the benefit of the Parties and their respective successors and assigns.

16.4 Entire Agreement. This Agreement, together with the Confidentiality Agreements
and the Confidentiality Order, constitute the entire agreement between the Parties on the subject
matter hereof. Where used herein, the singular shall apply to the plural, the plural to the
singular, and one gender to the other or the neuter where the context so requires.

 

-11-

 

16.5 Severability. The invalidity or unenforceability of any provision of this
Agreement shall not affect the validity or enforceability of any other provision hereof, which
shall remain in full force and effect.

16.6 Counterparts. This Agreement may be executed either as one document or in
separate counterparts, whether originals or copies of originals transmitted by facsimile or other
electronic means, each of which will be deemed an original, and all of which, when taken together,
will constitute one and the same Agreement.

16.7 Governing Law. The law of the Commonwealth of Virginia shall govern all
questions concerning the construction, validity, interpretation and enforceability of this
Agreement and the performance of the obligations imposed by this Agreement, without giving effect
to any choice of law or conflict of law rules or provisions (whether of Virginia or any other
jurisdiction) that would cause the application of the laws of any jurisdiction other than the
Commonwealth of Virginia.

16.8 Venue. Each of the Parties irrevocably consents to the exclusive jurisdiction
and venue of the United States District Court for the Eastern District of Virginia and any state
court located within Fairfax County, Commonwealth of Virginia. Each of the Parties agrees: (i)
that each of the United States District Court for the Eastern District of Virginia and any state
court located within Fairfax County, Commonwealth of Virginia shall be deemed to be a convenient
forum; (ii) to the service of process in any such legal proceeding in the United States District
Court for the Eastern District of Virginia or any state court located within Fairfax County,
Commonwealth of Virginia by the mailing of such process by registered or certified mail, postage
prepaid, at its address for notices provided for herein; (iii) not to assert (by way of motion, as
a defense or otherwise), in any such legal proceeding commenced in the United States District Court
for the Eastern District of Virginia or any state court located within Fairfax County, Commonwealth
of Virginia, any claim that any of the Parties is not subject to personal jurisdiction of such
court or that such legal proceeding has been brought in an inconvenient forum; and (iv) that the
venue of such proceeding is proper and that this Agreement may be enforced in or by the United
States District Court for the Eastern District of Virginia and any state court located within
Fairfax County, Commonwealth of Virginia.

16.9 Waiver of Jury Trial. EACH OF THE PARTIES IRREVOCABLY WAIVES THE RIGHT TO A JURY
TRIAL IN CONNECTION WITH ANY LEGAL PROCEEDING RELATING TO OR ARISING OUT OF THIS AGREEMENT.

16.10 No Other Consideration. The Parties affirm that the terms stated herein are the
only consideration for their executing this Agreement, and that no other representations, promises,
or agreements of any kind have been made by any person or entity to cause them to execute this
Agreement.

16.11 Acknowledgment. In entering into this Agreement, the Parties acknowledge that
they are represented by counsel of their choice, or had the opportunity to be represented by
counsel of their choice. The Parties affirm that they have read the Agreement in its entirety,
have had a full and fair opportunity to consider and understand its terms, and to be advised by
their counsel. The Parties further acknowledge that they execute the Agreement of their own free
will and without coercion.

 

-12-

 

16.12 Notices. All notices, requests, demands and other communications shall be in
writing and shall be deemed to have been duly given if delivered personally or if sent by a
nationally recognized overnight delivery service or by registered or certified mail, return receipt
requested, properly addressed and postage prepaid to the address set forth below.

	 	 	 
	GTSI CORP.

	 	THE EYAK CORPORATION
	2553 Dulles View Drive

	 	P.O. Box 340
	Suite 100

	 	Cordova, AK 99574
	Herndon, VA 20171

	 	Attn: President
	Attn: Sterling Phillips, President

	 	Telecopier: 907-424-5161
	Telecopier: 709-502-2933
	 	 
	 

	 	with a copy to:

	with a copy to:
	 	 
	 

	 	THE EYAK CORPORATION
	GTSI CORP.

	 	360 W. Benson Blvd., Suite 210
	2553 Dulles View Drive

	 	Anchorage, AK 99503
	Suite 100

	 	Attn: Brennan Cain, Corporate Counsel
	Herndon, VA 20171

	 	Telecopier: 907-334-6973
	Attn: Joe Ugialoro, General Counsel
	 	 
	Telecopier: 703-222-5217

	 	EYAK TECHNOLOGY, LLC
	 

	 	201 E. Third Avenue
	GLOBAL TECHNOLOGY GROUP, LLC

	 	Anchorage, AK 99501
	2627 C Street, Suite 100

	 	Attn: President
	Anchorage, AK 99503

	 	Telecopier: 907-276-5636
	Attn: Eleanor Andrews
	 	 
	Telecopier: 907-279-2757

	 	with a copy to:

	 
	 	 
	 

	 	EYAK TECHNOLOGY, LLC
	 

	 	22980 Indian Creek Drive Suite 400
	 

	 	Dulles, VA 20166
	 

	 	Attn: President
	 

	 	Telecopier: 703-880-5376

16.13 No Brokers. Each of the Parties represents and warrants to the other
Parties (except, as to GTSI, for Raymond James Financial, Inc. and, as to the Company, for Houlihan
Lokey) that it has not employed any broker in carrying out the negotiations relating to this
Agreement. Each Party shall indemnify and hold harmless the other Parties from and against any
claim for brokerage or other commission arising out of the Redemption contemplated hereby.

16.14 Survival of Representations, Warranties and Covenants. The representations and
warranties contained in this Agreement shall survive until the nine (9) month anniversary of the
Closing; except that the representations and warranties contained in sections 6.1, 6.2, 6.3, 7.1,
7.2, 7.3, 8.1, 8.2, 8.3, 8.5 and 8.9 shall survive until their applicable statute of limitations,
and each covenant and agreement contained in this Agreement, shall survive the Closing and be
enforceable in accordance with its terms until such covenant or agreement has been fully performed.

 

-13-

 

16.15 Further Assurances. Each of the Parties agrees to execute and deliver to the
other Parties such other documents and instruments as may be reasonably requested in furtherance of
the performance of the terms, covenants, and conditions of this Agreement. The Parties further
agree to cooperate in carrying out this Agreement, including, without limitation, the amendment of
the Operating Agreement to reflect the Redemption and the removal of GTSI as a party thereto.

(Signature page follows)

 

 

IN WITNESS WHEREOF, each of the Parties has executed and delivered this Agreement as of the
date first above written.

	 	 	 	 	 	 	 
	 	 	GTSI CORP.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

Name:
	 	 
	 

	 	 	 	Title:	 	 
	 
	 	 	 	 	 	 
	 	 	THE EYAK CORPORATION	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

Name:
	 	 
	 

	 	 	 	Title:	 	 
	 
	 	 	 	 	 	 
	 	 	GLOBAL TECHNOLOGY GROUP, LLC	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

Name:
	 	 
	 

	 	 	 	Title:	 	 
	 
	 	 	 	 	 	 
	 	 	EYAK TECHNOLOGY, LLC	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

Name:
	 	 
	 

	 	 	 	Title:Exhibit 10.1

Exhibit 10.1

CONFIDENTIAL PORTIONS OMITTED AND FILED SEPARATELY WITH THE SECURITIES

AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL

TREATMENT. BRACKETED ASTERISK ([*]) DENOTES OMISSIONS.

BRIDGE AMENDMENT TO THE

APPLIED MATERIALS — ADVANCED ENERGY GSA

THIS AMENDMENT is made as of the 26th day of January, 2011 (the “Amendment Date”), with
respect to that certain Global Supply Agreement dated August 29, 2005 (the “GSA”) between Applied
Materials, Inc. and Advanced Energy Industries, Inc. (as defined in the GSA, “Supplier”).

	1.	 	Continuation and Extension of GSA.

	 	a.	 	Capitalized terms used in this Amendment shall (unless separately defined in this
Amendment) have the same meaning as in the GSA. Except to the limited extent expressly
modified by this Amendment, the GSA shall remain unmodified and in full force and effect.

	 	b.	 	The parties agree that the Addendum to the GSA dated as of July 13, 2005, as later
amended as of January 23, 2007 (sometimes called the TFG Addendum) was terminated as of
August 29, 2008, and neither party has any further obligations thereunder.

	 	c.	 	The parties agree that the Applied part numbers, prices, and IP classifications listed
on the attached “Attachment 1” are all included on Attachment 1 to the GSA as of the
Amendment Date. (This is a non-exclusive listing of the Items that are on Attachment 1 as
of the Amendment Date, and does not remove any Item from Attachment 1 or waive any
commitment either Party may have otherwise made in writing to include or add an Item to
Attachment 1 at a future date.)

	2.	 	Continuation of Contracts and Amendments. The Parties expressly agree that all
amendments and addenda to the GSA and all separate contracts continue in effect without
modification by this Amendment. The amendments and contracts that remain in effect include,
by way of example and not limitation, the following: Amendment to the GSA regarding the [*],
Addendum to the GSA for the [*] Addendum, Shipping Amendment to the GSA, [*].

	3.	 	Replacement, Insertion, and Deletion of Certain GSA Sections. The following
provisions of the GSA are hereby replaced, deleted or inserted as set forth below.

	 	a.	 	Section 1(b) is replaced with the following:

“Applied” means Applied Materials, Inc., on behalf of itself and its subsidiaries existing
on or after the Effective Date, including without limitation Applied Materials South East
Asia Pte. Ltd. and Applied Materials Europe BV.

	 	b.	 	Section 1(l) is replaced with the following:

“Specifications” means such drawings, designs, instructions, technical or performance
requirements or other technical information relating to the design, development,
manufacture, installation, assembly, testing and/or use of one or more Items. The
Specifications for a particular unit of an Item are the Specifications in place for that
Item at the time that unit is ordered by Applied. Through Applied’s Engineering Change
Order (ECO) process, the Specifications for an Item can change. The revised Specifications
will apply to units of the Item ordered after the ECO is implemented by Supplier in
accordance with the ECO process; however, unless otherwise agreed by Applied and Supplier,
the ECO will not modify the Specifications that are applicable to any unit of that Item
ordered by Applied before the ECO was implemented.

 

 

 

	 	c.	 	Section 1(j) is replaced with the following:

“Sub-tier Supplier” means a member of Supplier’s direct or indirect sub-tier supply base
(including, without limitation, subcontractors and vendors of Supplier, and of Supplier’s
subcontractors and vendors) that provides goods and/or services in connection with an Item.

	 	d.	 	Section 2(b) is replaced with this following:

	4.	 	Term. The GSA shall, unless terminated as set forth in Section 21 (Termination),
continue in effect for at least thirty-six (36) months after January 28, 2011. Subject to the
minimum thirty-six (36) month term, this Agreement shall continue until either party provides nine
(9) months prior written notice to the other party of such party’s desire to allow this Agreement
to expire. The effective period of this Agreement is referenced as the “Term.”

	 	a.	 	Section 3(e) is replaced with the following:

Purchases by Authorized Third Party. Certain Items may be incorporated into
subassemblies or other products made for Applied by a third party. In such event, Applied
may designate the third party as authorized to purchase such Item(s) from Supplier and, upon
Supplier’s receipt of notice thereof, Supplier shall enter into an agreement with such third
party to sell such Item(s) to such third party on terms (including [*]) [*] the terms set
forth in this Agreement specifically for use on subassemblies or other products that such
third party will sell directly to Applied. Although Applied will have the right to require
such a contract between Supplier and a third party designated by Applied to be on terms[*]
the terms set forth in this Agreement, Applied will not be a party to the negotiations, nor
a party to the resulting contract, between Supplier and such a designated third party.

	 	b.	 	Section 4(c) is replaced with the following:

Transportation Costs. Pursuant to Section 6(b), below, Applied pays
transportation charges directly to certain common carriers designated by Applied. For those
Items where Applied pays such charges, pricing in a quotation or invoice or as set forth in
Attachment 1 shall not include any transportation costs. For all other Items, all costs for
shipping, import/export fees, customs, and other transportation expenses shall be separately
identified and itemized by Supplier in each quotation or invoice or on Attachment 1.

	 	c.	 	Section 4(d) is replaced with the following:

Price Adjustments. [*].

	 	d.	 	In Section 5(c), “[*]” in the last sentence is replaced with “[*]” In addition, the
following language is inserted at the end of Section 5(c):

If, pursuant to Section 5(c)(iii), Applied purchases products comparable to an Item in the
open market or from other suppliers and charges Supplier the cost differential, Applied will
have the right to continue implementing this cover remedy in accordance with Section
5(c)(iii) for a period of [*]. During this [*] period, Applied shall not be required, as a
condition of implementing this cover remedy, to continue to issue Authorized Demand Signals
to Supplier unless Supplier has without qualification committed in writing to accept
Applied’s Authorized Demand Signal at the Contract Price and to deliver the Items when and
as required by this Agreement. If the root cause(s) of the late delivery or failure to
deliver the Items on time is cured prior to the expiration of this [*] period, and if
Supplier without qualification commits to deliver those Items on time and in full compliance
with the GSA, then Applied’s right to cover those Items will end. Each Item (by Applied
part number) will have its own [*] cover period. In addition, if a [*] period commences as
to a particular Item, the root causes for that delay or failure to deliver on time are
cured, and then a new delay or failure to deliver on time arises, a new [*] cover period
will commence for that Item.

 

Page 2 of 11

 

	 	e.	 	The following provision is added as a new subsection (p) to Section 11 of the GSA:

(p) Audit. Supplier shall permit Applied, and cause its employees and agents to
permit Applied, after reasonable written notice to Supplier (and in any event not less than
[*] in advance), to take reasonable steps to audit and verify compliance with Sections 9 and
11. During this notice period, if requested by Supplier, Applied will discuss the scope and
purpose of the audit with Supplier, and will escalate that discussion as appropriate within
Applied’s Global Sourcing Organization (GSO) or its successor organization. In addition,
upon Applied’s request, Supplier shall provide to Applied a record of all Sub-tier Suppliers
and other persons to whom Confidential Information was disclosed by Supplier or by another
person, the Confidential Information that was disclosed to such person, and the date such
Confidential Information was retrieved from such person. The following additional provisions
will apply to any audit under this Section 11(p) to the extent that Supplier agrees to allow
Applied to access data or other information on or through Supplier’s computer systems in the
course of the audit: (i) The audit of Supplier’s data and its information systems will be
conducted using Encase software, or a similar program chosen by Applied and reasonably
acceptable to Supplier. (ii) Applied may engage a third-party service to assist in data
extraction, and Supplier IT personnel will assist in that effort. (iii) The third-party
inspector (if engaged) will perform analytical tasks on specified systems, and Supplier IT
personnel will ensure that the inspection does not disrupt Supplier’s business operations or
modify its data. (iv) Any external services contracted by Supplier or Applied regarding
data extraction/examination will agree in writing to keep all confidential information of
Supplier in confidence; not to use any such information for any purpose other than this
inspection; not to disclose any such information to any person other than Applied; and not
to disclose any such information to Applied until after working with Applied to narrow the
disclosure of such information to what is reasonably necessary to enable Applied to ensure
compliance with the GSA and to protect Confidential Information and Applied’s IP Rights. If
the inspector discloses any such information to Applied in accordance with the foregoing
sentence, Applied shall keep all of Supplier’s confidential information provided under this
Section 11(p) in confidence, except that disclosures required by law are permitted if
Applied takes reasonable measures, or affords Supplier a reasonable opportunity to pursue
measures, such as protective orders or requests for confidential treatment, to protect
Supplier’s intellectual property rights in such proceedings. After the inspection is
completed, the third-party inspector shall return to Supplier all confidential information
of Supplier, if any, in such inspector’s possession, custody or control.

	 	f.	 	The second and third sentences in Section 12(e), Remedies, are deleted and replaced
with the following:

Applied will be required to [*] above unless Supplier [*] within the time period required to
meet the volume manufacturing needs of Applied or the commercial needs of Applied’s
customer, provided that Supplier shall be given a minimum of [*], after return of an Item by
Applied, [*]. If Applied elects to [*] as set forth in subsection [*] above, then Applied
agrees that [*] for which the [*], including the [*] of the [*].

	 	g.	 	The last sentence in Section 12(e), Remedies, is deleted and replaced with the
following:

Applied may notify Supplier of defects and nonconformances and communicate its elected
remedy by delivery of notice in the form of a “Supplier Corrective Action Request” as set
forth in Attachment 8a on the Applied Web Site or in accordance with the Discrepant Material
Report (“DMR”) and closed-loop corrective action processes as set forth in Attachment 8b
located on the Applied Web Site.

 

Page 3 of 11

 

	 	h.	 	Section 15(b) is replaced with the following:

Design and Process Change Communication. After Applied has approved the First
Article, Supplier shall not make any change to the design (firmware, hardware or software)
of the Item that may alter the Specifications or the form, fit, function [*] of parts
without first submitting a “Supplier Problem Sheet (SPS)” as set forth in Attachment 12 on
the Applied Web Site. Supplier will not make changes to the manufacturing process of such
Items, including a transfer of any portion of the design, manufacturing, or assembly process
to a different facility, without first submitting a “Supplier Notification Form (SNF)” as
set forth in Attachment 13 on the Applied Web Site.

	 	i.	 	Section 15(c) is replaced with the following:

Other Changes and Equitable Adjustments. Applied may, upon notice to Supplier,
require Engineering Change Orders (“ECOs”) with respect to an Item to address (i) safety
problems related to an Item, (ii) an Item’s non-compliance with governmental regulations or
laws in place at the time of delivery of an Item to Applied, or (iii) performance problems
or concerns arising from the Item’s noncompliance with its written Specifications, and
Applied may request an ECO with respect to an Item for other reasons. Supplier’s
expectations and responsibilities associated with ECOs are set forth in Attachment 14, “ECO
Process Requirements” on the Applied Web Site. With respect to an ECO required by Applied,
or an ECO requested by Applied and approved by Supplier, Supplier shall meet such
requirements in a timely and cost effective manner. The price for any Item for which
Applied has issued an ECO will be adjusted up or down based on [*]. If the required change
causes the part number to change and thus become a “new Item”, the new Item will be added to
Attachment 1 and the price for the new Item will be the price of the original Item before
the change, adjusted up or down based on [*] for that Item. Either party may submit a
request for a price change based on an ECO. Supplier shall supply the original Item and/or
the new Item in accordance with Applied’s request. No claim by Supplier for adjustment
under this subsection shall be valid unless in writing and received by Applied within [*]
from the date of Supplier’s receipt of the notice of such change; provided, however, that
such period may be extended upon the written approval of Applied, and provided that so long
as Supplier asks Applied for additional time in writing within this [*] period, Applied will
not unreasonably withhold consent for an extension up to [*].

	 	j.	 	Section 15(e), Ozone Depleting Chemical, is replaced with the following:

Compliance with Minimum Environmental, Health & Safety Requirements. Supplier,
Supplier’s Subsidiary and Sub-tier Suppliers shall comply with, any applicable
environmental, health or safety law, rule, regulation, order, decree or ordinance, as well
as those environmental, health and safety requirements set forth in Attachment 3d entitled
“0250-27105, Minimum Product EHS Requirements for Items” located on the Applied Web Site.

	 	k.	 	Section 16, Management of Inventory, is replaced with the following:

(a) Designation of Inventory [*] Items. Applied may designate certain Items
as “Inventory [*] Items” by (i) reporting a [*] “Target Inventory” quantity for that Item in
an authorized inventory planning tool, or (ii) identifying an Item as an Inventory [*] Item
on Attachment 1, or otherwise providing Supplier with written or electronic notice of such
designation. Unless otherwise agreed, Applied will only designate an Item as an “Inventory
[*] Item” if Applied intends to order that Item from Supplier [*]. So that Applied can set
appropriate Target Inventory quantities, Supplier shall actively maintain accurate [*] for
all Items in such authorized inventory [*], using the definition of [*] designated by
Applied from time to time for this purpose. (Applied must have the right to designate a
definition of [*] with respect to putting data into Applied’s [*] inventory [*] will use the
data input by Supplier to [*] Target Inventory quantity, and if Supplier uses a different
understanding of the [*] than Applied intends, [*].) Supplier agrees to
manufacture and stock such Inventory [*] Items in accordance with this Section 16; and/or,
if requested by Applied, a separate written agreement between Applied and Supplier.

 

Page 4 of 11

 

(b) Forecasts. Applied may periodically issue to Supplier rolling forecasts setting
forth projected demand for Items, whether by specific divisions or otherwise (“Applied
Forecasts”). Applied Forecasts are intended for planning purposes only and shall not
constitute a binding purchase commitment of Applied. If Applied designates an Inventory
[*] Item under Section 16(a)(ii), and does not specify a “Target Inventory” quantity for it
in [*] inventory [*], then that Item’s Target Inventory quantity shall equal the [*]
forecasted demand for that Item in the most recent and most specific Applied’s Forecast for
that Item. (The Parties may modify this number of weeks for any particular Item in
Attachment 1.)

(c) Inventory Levels and Tracking Requirements. Unless otherwise designated in
Attachment 1 or a separate written agreement, Supplier will maintain the “Target Inventory”
quantity, if any, of each Inventory [*] Item as specified by Applied from time to time. All
Inventory [*] Items manufactured by Supplier to meet a then-current Target Inventory
quantity shall be considered [*] Inventory” under this Agreement. When Supplier is creating
inventory levels to satisfy required Target Inventory levels of [*] Inventory, any reduction
in quantity of Inventory [*] Items that were ordered pursuant to an Authorized Demand
Signal, or any quantity of Items ordered pursuant to an Authorized Demand Signal that is
later cancelled by Applied, shall be returned to Supplier’s inventory and Supplier will
increase its inventory levels accordingly. Supplier shall monitor and report its
work-in-process and Inventory [*] Item count to Applied for all [*] Inventory.

(d) Claim for [*] Items. If Applied has not taken delivery of any unit of a
particular Inventory [*] Item in [*] Inventory within [*] from the date of Applied’s last
receipt of that unit, Supplier may then submit a claim [*] Items (“[*] Items”) to Applied
within [*] from the end of such [*] period. (Each Applied part number that is an Inventory
[*] Item will be measured separately to determine when [*] has elapsed with no receipt by
Applied of any unit of that Applied part number.) Supplier’s failure to submit such a claim
within this [*] period shall constitute waiver of [*] Items and Applied shall be released
from all liability relating to such [*] Items.

(e) Claim for [*] Items. An Inventory [*] Item in [*] Inventory will be
considered an “[*] Item” when Applied provides notice to Supplier that such Inventory [*]
Item is an [*] Item.” If Supplier desires to submit a claim for [*] Items, then Supplier
shall submit a claim for such [*] Item(s) within [*] from the date on which Applied notifies
Supplier that the Inventory [*] Item(s) are [*] Items. Supplier’s failure to submit such a
claim within this [*] period shall constitute a waiver of any claim [*] Items and Applied
shall be released from all liability relating to such [*] Items.

(f) Scope of Claim. Applied will not be liable for [*] Inventory other than as
described in this Section 16. In addition, no claim for [*] payment for [*] Inventory shall
be made in the following situations: (i) any termination by Applied pursuant to Section
21(a) (Termination for Default); (ii) if Supplier has [*]; (iii) Supplier errors in
production; (iv) if Supplier has been paid for such Items previously or has made a claim for
[*] payment for such Items previously; (v) if such Items are “Commercial Off-the-Shelf
Items” meaning Items that are standard or stock items in the industry in contrast to Items
manufactured to build-to-print specifications of Applied or its customer, except to the
extent [*] Items [*]; (vi) if Supplier has failed to fulfill its obligations to meet with
Applied in accordance with Section 16(i), unless Supplier is unable to do so because of
actions of Applied; (vii) if such Items were not disclosed by Supplier to Applied on each
report required by Section 16(i) when each such report was due, provided that a failure to
disclose Items on one report will not cause this exception (vii) to apply if Supplier does
disclose those Items in writing to Applied within [*] after the Items should have been
disclosed; or (viii) if Supplier materially fails to participates in Applied’s ECO process
as reasonably requested by Applied, including
without limitation providing accurate information about such Items that will be affected by
a proposed ECO and that Supplier has in inventory or on order so that Applied can plan its
ECO implementation to minimize the quantity of on-hand and/or on-order Items that will be
made obsolete by the ECO.

 

Page 5 of 11

 

(g) Claim Process. Any claim made under this Section 16 will be addressed based on
[*]. Supplier is responsible for [*] Inventory [*] Items [*] Inventory [*] and otherwise
making all efforts to mitigate the cost to Applied in any such claim. Any claim shall be
supported by reasonable evidence including a detailed listing of the relevant Inventory [*]
Item [*], documentary evidence that the [*] Inventory required for that Inventory [*] Item
and was not subsequently purchased by Applied; and a detailed description of Supplier’s
efforts to mitigate the costs to Applied. Supplier’s claim will be based solely on costs
incurred as a result of Applied’s actions or obsolescence. No [*] shall be considered in
calculating such claims. Applied reserves the right to physically audit the inventory
levels identified in the claim. Such audit shall be conducted in accordance with Section
19(e) (Financial Statements and Right to Audit).

(h) Disposal of [*] and [*] Items. Supplier agrees to physically
dispose of all [*] Items as directed in writing by Applied. [*] Items that are to be
delivered [*] must be delivered in accordance with the requirements of this Agreement and/or
any supplemental instructions provided by Applied. In lieu of [*], Applied may require that
Supplier [*] Items [*], and Supplier shall comply with this requirement in accordance with
Applied’s instructions and provide Applied with [*] (as set forth in Attachment 17 entitled
“Certificate of Destruction” located on the Applied Web Site).

(i) Materials Liability Review Meetings. Designated representatives of each party
shall attend a meeting (each, an “Inventory Review Meeting”) at the beginning of each
Applied fiscal quarter at such dates and times as agreed to between the Parties. On the
business day immediately before each Inventory Review Meeting (or by the tenth day of the
first month of each Applied fiscal quarter, whichever comes first), Supplier shall provide a
report in Microsoft Excel format (or another mutually agreed-upon written or electronic
format) to Applied identifying Supplier’s [*] inventory levels [*] Inventory, listed by
Applied part number, and showing [*] Item [*], a description in reasonable detail of all
actions taken by Supplier [*]. At each Inventory Review Meeting, the Parties will share
information to coordinate their combined operations, and discuss the report provided by
Supplier. From time to time, the Parties may mutually agree upon the specific format for
Supplier’s report and Supplier shall thereafter provide such report in the agreed-upon
format; however, no failure to agree on a format shall relieve Supplier from providing this
report in a commercially reasonable format when and as required by this Section 16(i).

	 	l.	 	Section 17, Management of Sub-tier Suppliers, is replaced with the following:

(a) Sub-tier Suppliers. After Applied has approved of the First Article of an Item,
Supplier shall not subcontract with any new or different Sub-tier Supplier as to such Item
without the prior written approval of Applied. Supplier agrees to use best efforts to inform
Applied of any process or Sub-tier Supplier changes related to Items (including, for example,
obsolescence of components, any changes in the manufacturing process of a Sub-tier Supplier,
or a transfer of any portion of the design, manufacturing, or assembly process to a different
facility), not less than [*] days prior to the date the Supplier or Sub-tier Supplier is
contemplating the implementation of the change, and further agrees that any such notice will
not be less than [*] days prior the change, by following the notification processes set forth
in Attachment 13 entitled “Supplier Notification Form (SNF)” located on the Applied Web Site.

(b) Sub-tier Supplier’s Obligations.

(i) Supplier will communicate to all Sub-tier Suppliers each action that is required of
Sub-tier Suppliers by another provision of this Agreement (including but not limited to
Sections 15 and 17(a)), and their obligations to comply with all Specifications, quality,
manufacturing and other technical requirements that may be necessary in order for the
Sub-tier Supplier to timely deliver conforming Items, or any portion thereof, to the
Supplier for the benefit of Applied.

 

Page 6 of 11

 

(ii) Supplier will not provide any Confidential Information to any Sub-tier Supplier
(or other third party authorized by Applied to receive or obtain, directly or indirectly,
Confidential Information) unless that Sub-tier Supplier (or other third party) has entered
into a signed, written agreement requiring that Sub-tier Supplier (or other third party)
(collectively, “Recipients”) to hold all Confidential Information in confidence and not to
use the Confidential Information in any way, except on behalf of Supplier in performing
Supplier’s obligations hereunder for the benefit of Applied, and to protect the Confidential
Information, and not to engage in the activities prohibited by this Agreement, upon
substantially similar terms to those set forth in Section 9 above.

Upon Applied’s request, Supplier will actively enforce Supplier’s rights under such
agreements for the benefit of Applied, including but not limited to retrieving Confidential
Information from Recipients.

(c) Mandated Sub-tier Suppliers. “Special Process” means a process that is
specifically designated as such by Applied, which may include, but is not limited to,
causing a metallurgical change to the base material such as heat treating, forging or
hardening processes; joining materials by welding, brazing, or other bonding process; or
providing a coating or surface treatment such as cleaning, electropolishing, plating,
painting, or anodizing. As to any Item(s) which require a Special Process, Supplier must
use (and cause Sub-tier Suppliers to use) one or more of the suppliers and otherwise follow
the requirements identified in Attachment 18 entitled “Applied Materials Special Process
Supplier Approval List” located on the Applied Web Site.

	 	m.	 	Section 21, Termination, is replaced with the following:

(a) Termination for Default.

(i) Notice By Applied. Applied may give Supplier notice of default of this
Agreement or of any Authorized Demand Signal if (1) Supplier fails to deliver Items in
accordance with the delivery times, Specifications, and other requirements of this
Agreement, or otherwise materially breaches this Agreement; (2) Supplier anticipatorily
repudiates any material provision of this Agreement and fails to provide adequate assurance
to Applied of Supplier’s future performance; or (3) Supplier becomes insolvent, files a
petition for relief under any bankruptcy, insolvency or similar law, or makes an assignment
for the benefit of its creditors.

(ii) Notice By Supplier. Supplier may give Applied notice of default of this
Agreement, in whole but not in part, if (1) Applied materially breaches this Agreement (2)
Applied anticipatorily repudiates Section 8, 11, or 26(a) of this Agreement and fails to
provide adequate assurance to Supplier of Applied’s future performance; or (3) Applied
becomes insolvent, files a petition for relief under any bankruptcy, insolvency or similar
law, or makes an assignment for the benefit of its creditors.

(iii) Notices of Default and Cure Period. Any notice of default shall be in
writing, reference this Section 21(a), state whether the notice relates to a specified
Authorized Demand Signal (under i above) or to this Agreement (under i or ii above), and
specify the basis for such notice (the “Defaulting Condition”). No cure period shall be
available, and this Agreement shall terminate immediately after the notice of default, if
(1) the Defaulting Condition is a negligent, knowing or willful material breach of Section 9
or Section 11, or (2) the Defaulting Condition is anticipatory repudiation, or if it cannot
reasonably be cured. No cure period shall be available for termination of
an Authorized Demand Signal for default. For all other Defaulting Conditions, the
defaulting party shall have [*] days in which to cure the Defaulting Condition, and the
Agreement shall not terminate if the defaulting party cures the Defaulting Condition within
such cure period.

 

Page 7 of 11

 

(iv) After Termination for Default. Upon any termination by Applied pursuant
to this Section 21(a), Supplier shall:

(1) continue to supply any portion of the Items for which this Agreement is
not cancelled;

(2) be liable for [*] additional costs, if any, incurred by Applied for the
purchase of similar goods and services to cover such default, provided that

	 	(a)	 	if the termination for default is of an
Authorized Demand Signal, such additional costs shall be [*] (which
cost may include premium costs for expedited delivery and
administrative costs), provided that [*], and

	 	(b)	 	if the termination for default is of this
Agreement, such additional costs shall be for (i) the [*] at the time
of such termination, plus (ii) [*] (which cost may include premium
costs for expedited delivery and administrative costs) for commercially
reasonable substitutes for those Items, provided that the cost
differential for each Item [*], and provided that the cost differential
will [*] where such purchases are made by Applied during the
Post-Termination Period as defined below; and

3) at Applied’s request, Applied and Supplier will discuss and potentially
negotiate transferring title and delivery to Applied: (a) any completed
Items, (b) any partially completed Items, and (c) all unique materials and
tooling subject or relating to the termination, at which time Applied will
be liable to Supplier for the fair market value of all such Items, material
and tooling so transferred (excluding such material or tooling provided to
Supplier by Applied). Termination of the Agreement under this Section 21(a)
shall constitute “cancellation” under the Uniform Commercial Code as adopted
in California.

The “Post-Termination Period” means [*]: (i) [*] after effective date of the termination of
this Agreement or (ii) [*].

(b) Termination of an Authorized Demand Signal for Convenience.

(i) In addition to either Party’s rights under Section 2(b) and under Section 21(a),
Applied may terminate any Authorized Demand Signal in whole or in part at any time for
Applied’s convenience by giving Supplier notice which shall state the extent of the
termination and the conduct required of Supplier in connection therewith. Such a
cancellation may be for any reason including a reduction in the quantity of an Item ordered
under an Authorized Demand Signal. Supplier will use commercially reasonable efforts to
mitigate any damages incurred in connection with such termination. Within [*] from the date
on which Supplier receives such notice, Supplier shall deliver to Applied [*], in the form
and containing such documentation as required by Applied. In no event, shall [*] include
any [*].

(ii) Failure by Supplier to deliver such [*] within this [*] period shall constitute a
waiver by Supplier of [*] and a release of all Applied’s liability arising out of such
termination.

(iii) If Applied does not agree with [*], Applied and Supplier will [*]. If Applied
and Supplier [*] after receipt by Applied of the [*] from Supplier, then the [*] will be
conclusively presumed to be the [*] (provided that [*]): (1) the [*] for all Items
delivered to Applied pursuant
to the Authorized Demand Signal prior to the date of Applied’s termination; (2) the [*]
for all Items [*] prior to the date of termination, provided such Items are promptly [*];
(3) the [*] relating to Items ordered pursuant to the Authorized Demand Signal, [*]
Commercial-Off-The-Shelf components either manufactured or procured by Supplier, and an
amount [*]; and (4) the [*] as a direct result of [*]. Applied’s [*] pursuant to clauses
(3) and (4) above shall be subject to Supplier’s obligation to use commercially reasonable
efforts to mitigate any such costs.

 

Page 8 of 11

 

(iv) This Section 21(b) sets forth Supplier’s sole remedies, and Applied’s entire
liability to Supplier, in the event of a termination of an Authorized Demand Signal by
Applied for convenience, other than Supplier’s remedy and Applied’s liability as set forth
in Section 16.

(c) Post Termination Consequences. On the date of termination or expiration of the
Agreement for any reason, Supplier shall (i) stop work being performed by Supplier pursuant
to the Agreement, (ii) cancel orders for parts and/or materials with Supplier’s Sub-tier
Suppliers and cease ordering any such parts and/or materials, (iii) cancel work being
performed by Supplier’s Sub-tier Suppliers, (iv) cancel any sublicense granted to Sub-tier
Suppliers in accordance with this Agreement, (v) fully cooperate with Applied to minimize
any adverse effect on Applied or its customers, and (vi) perform those other obligations set
forth in this Agreement upon the termination or expiration of this Agreement.

	 	n.	 	Section 22, Disclaimer and Limitation of Liability, is replaced with the
following:

(a) NOTWITHSTANDING ANYTHING ELSE IN THIS AGREEMENT, IN NO EVENT SHALL [*] BE LIABLE TO [*]
OR TO ANY OTHER PERSON OR ENTITY WITH RESPECT TO ANY SUBJECT MATTER OF THIS AGREEMENT, UNDER
ANY EQUITY, COMMON LAW, TORT, CONTRACT, ESTOPPEL, NEGLIGENCE, STRICT LIABILITY OR OTHER
THEORY, FOR ANY (A) SPECIAL, CONSEQUENTIAL OR INDIRECT DAMAGES OR (B) DAMAGES RESULTING
FROM [*], EVEN IF THE REMEDIES PROVIDED FOR IN THIS AGREEMENT FAIL OF THEIR ESSENTIAL
PURPOSE AND EVEN IF [*] HAS BEEN ADVISED OF THE POSSIBILITY OF ANY OF THE FOREGOING DAMAGES.
NOTWITHSTANDING THE FOREGOING, THIS SECTION 22(a) SHALL NOT APPLY TO OR OTHERWISE LIMIT ANY
DAMAGES THAT ARE EXPRESSLY RECOVERABLE UNDER ANOTHER SECTION OF THIS AGREEMENT, OR ANY
DAMAGES ARISING OUT OF OR RELATED TO (i) [*] BREACH OF [*], (ii) A BREACH [*], OR [*]
INFRINGEMENT OR MISAPPROPRIATION OF THE [*] OR A THIRD PARTY’S INTELLECTUAL PROPERTY OR
PROPRIETARY RIGHTS, (iii) THE FRAUD OR WILLFUL MISCONDUCT OF [*], (iv) [*] OBLIGATIONS
UNDER SECTION [*] TO THE EXTENT THE [*] (AS DEFINED THEREIN) ARISE FROM OR RELATE TO A [*],
OR (v) PERSONAL INJURY OR PROPERTY DAMAGE.

(b) IN NO EVENT SHALL [*] AGGREGATE LIABILITY TO [*], UNDER ALL OF THE FOLLOWING PROVISIONS
OF THIS AGREEMENT TAKEN TOGETHER, THROUGHOUT THE ENTIRE TERM OF THIS AGREEMENT, EXCEED [*]:
[*]. THIS SECTION 22(b) SHALL NOT APPLY TO OR OTHERWISE LIMIT ANY OTHER LIABILITY OF [*],
INCLUDING BUT NOT LIMITED TO ANY LIABILITY ARISING UNDER SECTIONS [*]. On or within thirty
(30) days after each anniversary of the Effective Date of this Agreement, [*] shall notify
[*] in writing if the liability limit under this Section 22(b) has been reduced by any
amount paid or incurred by [*] since the previous anniversary of the Effective Date,
itemizing each such amount and describing it in reasonable detail. The liability limit
under this Section 22(b) shall be conclusively deemed not to have been reduced by any amount
paid or incurred by [*] since the previous anniversary of the Effective Date unless that
amount is reported to [*] when and as required by the preceding sentence.

 

Page 9 of 11

 

	 	o.	 	Section 24, Import and Export Requirements, is replaced with the following:

(a) General. Both parties shall comply with all applicable import and export
control laws or regulations (“Import and/or Export Laws”) promulgated and administered by
the laws of the United States or the government of any other country with jurisdiction over
the Parties or the transactions occurring under this Agreement including the obligation not
to export, re-export or otherwise disclose, directly or indirectly, Items or technical data
to any person or destination when such export, re-export or disclosure is in violation of
Import and/or Export Laws. Applied shall provide Supplier with any and all information
(“Trade Compliance Information”), to the extent the Item is Applied’s design, that may be
required to comply with Import and/or Export Laws, including applicable Export Control
Classification Numbers and Harmonized Tariff Schedule Numbers. Supplier shall provide
Applied with any and all Trade Compliance Information to the extent the Item is Supplier’s
or a Sub-tier Supplier’s design. Documentation substantiating U.S. and foreign regulatory
approvals for the Items, and information required by Customs officials to substantiate the
value of imported Items, including any adjustments in valuation attributable to
manufacturing assists as defined by the U.S. Customs Regulations shall be provided by
Supplier. In any case, Supplier shall refrain from transmitting any Specification, design,
Item, or other good or documentation (or otherwise take any action or omit to take any
action) in violation of the Import and/or Export Laws.

(b) Country of Manufacture. Foreign origin Items produced by Supplier shall have
its packing marked with the Country of Origin as required by Import and/or Export Laws.
Supplier shall complete a manufacturer’s affidavit in the form of Form F-88 (or its
successor form provided by Applied), which is available through the Applied Web Site, prior
to delivery of the first Item, and shall update that Form (i) as required by the Form F-88
process, or (ii) upon request by Applied. In addition, upon Applied’s request, Supplier
shall provide other documentation as may be required by U.S. Customs and Border Protection
or other governmental authorities with respect to Supplier’s products.

(c) Duty Drawback. Supplier will provide Applied or its agent with U.S. Customs
entry data and information that Applied determines is necessary for Applied to qualify for
duty drawback. Such data shall include information and receipts for duties paid, directly
or indirectly, on all Items which are either imported or contain imported parts or
components. Information related to serial numbers, unique part numbers, lot numbers and any
other data which will assist Applied in identifying imported Items sold to Applied shall
also be provided. At the time of delivery of the Items, but in no event later than thirty
(30) days after each calendar quarter, Supplier will provide said documents accompanied by a
completed Certificate of Delivery of Imported Merchandise or Certificate of Manufacture and
Delivery of Imported Merchandise (Customs Form 331) as promulgated pursuant to 19 CFR 191,
or successor regulations.

	 	p.	 	Section 26(d) is replaced with the following:

Survival of Obligations. Termination or expiration of this Agreement will not
relieve either Party of its obligations under Sections 8(a), 8(c), 9, 11(a) — (i), (m) —
(n), and (p), 12, 17(b), 19, 20(d) — (f), 21 — 24, 26(c) — (e), (g), (i) — (k), (n),
(o), (q), (r), and (s), nor will termination or expiration relieve the Parties from any
liability arising prior to the date of termination or expiration.

	 	q.	 	Section 26(f) is replaced with the following:

General Compliance with Laws and EEO Regulations. Each Party represents, warrants
and agrees that (i) such Party’s execution, delivery and performance of this Agreement will
not conflict with or violate any applicable law, rule, regulation, order, decree, or
ordinance; and (ii) such Party shall comply with the requirements of 41 CFR §§ 60-1.4(a)
—250.5(a), and —741.5(a), if applicable, relating to equal opportunity clauses pertaining
to government contracts.

 

Page 10 of 11

 

	 	r.	 	Section 26(k) is replaced with the following:

General Representations. Each Party represents and warrants as follows: (i) such
Party is duly organized, validly existing, and in good standing under the laws of the
jurisdiction of its organization; and (ii) such Party’s execution and delivery of this
Agreement and performance of its obligations hereunder will not (1) violate any provision of
the charter, bylaws or other governing document of such Party, or (2) conflict with, result
in a breach of, or constitute a default under, any other agreement or arrangement by which
such Party is bound.

	 	s.	 	Section 26(i), Applicable Law, Jurisdiction, Venue, is replaced with the
following:

Governing Law, Exclusive Forum. The Agreement and any dispute arising out of or in
connection with the Agreement or the Parties’ relationship shall be interpreted, enforced
and governed by the laws of the State of California, excluding its choice of law rules. The
exclusive forum for any dispute related in any way to this Agreement or the Parties’
relationship shall lie in the courts, state or federal, of California, and venue shall lie
in the courts of Santa Clara County. Items shall be deemed and shall qualify as goods under
the Uniform Commercial Code as adopted in California. Each Party consents to personal
jurisdiction in the above courts. Notwithstanding the foregoing, Applied shall have the
right to seek injunctive relief, including preliminary and permanent injunctive relief, in
any court of competent jurisdiction, including, without limitation, to enforce Applied’s
rights under Sections 9 and 11, or to otherwise enforce any judgment made hereunder.

	 	t.	 	The following provisions are added as new subsections to Section 26 of the GSA:

(t) Electronics Industry Code of Conduct. Supplier acknowledges that Applied has
adopted and supports the Electronics Industry Code of Conduct, which is set forth on
Applied’s Web Site as Attachment 21. Supplier acknowledges it has reviewed, complied with,
and will implement this code and will use commercially reasonable efforts to encourage its
Sub-tier Suppliers to implement this code.

(u) Notifications to Applied. Supplier shall promptly notify Applied in writing as
soon as possible before, and in any event prior to the occurrence of, (i) Supplier’s
acquisition of a majority of the capital stock of, or substantially all of the assets of, a
third party or business division of a third party that directly or indirectly provides goods
or services to Applied; (ii) a significant change in leadership roles at Supplier, a
business division of Supplier, or factory or physical plant of Supplier, which is involved
in Supplier’s performance of this Agreement; (iii) any problem or other issue that a
reasonable person in the position of Supplier would believe could negatively impact
Supplier’s ability to perform its obligations under this Agreement (including making on-time
deliveries); or (iv) any material change to Supplier’s information, inventory management, or
financial management systems or processes. 

IN WITNESS WHEREOF, each party has caused this Amendment to be executed by its duly authorized
representative.

	 	 	 	 	 	 	 	 	 	 	 
	APPLIED MATERIALS, INC.	 	 	 	ADVANCED ENERGY INDUSTRIES, INC.	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	/s/ George Alasajan
 

Name: George Alasajan
	 	 	 	By:
	 	/s/ Hans Betz
 

Name: Hans Betz
	 	 
	 

	 	Title: Not provided
	 	 	 	 	 	Title: CEO	 	 

	 	 	 
	Note:	 	This Amendment was not signed by Advanced Energy Industries until January 28, 2011

 

Page 11 of 11

 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	Lead	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	Time	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	(business	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	days	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	including	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	transit	 	Lead	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	time	 	Time	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	estimate	 	(business	 	 	 	Refurb	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	using	 	days	 	 	 	Cycle	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	AMAT	 	excluding	 	 	 	Time	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	freight	 	in-transit	 	Section 12	 	(Typical	 	 	 	Item	 	Royalty	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	routing	 	time;	 	Warranty	 	business	 	 	 	Category	 	(% of	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	Item	 	guide;	 	item	 	(Months	 	days	 	Contract	 	Unrestricted	 	item	 	 	 	 	 	 
	 	 	AMAT	 	 	 	AE	 	AE	 	Contract	 	item on	 	NOT on	 	from AE	 	required	 	Type	 	Royalty	 	Contract	 	 	 	 	 	AE
	AMAT	 	Rev	 	AE Part	 	Rev	 	Platform /	 	Price per	 	CSP	 	CSP	 	invoice	 	by refurb	 	1 = Direct	 	Restricted	 	Price per	 	 	 	AMAT	 	Product
	PIN	 	Level	 	Number	 	Level	 	Description	 	Unit	 	forecast)	 	forecast)	 	date)	 	process)	 	5 – VMI	 	Exclusive	 	Unit)	 	Notes	 	BU	 	Family
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