Document:

Exhibit 10.1

 

 

Execution Copy

 

Amended and Restated Employment Agreement

 

This Amended and Restated Employment Agreement (the “Agreement”), entered into on March 1, 2015 (the “Effective Date”), is made by and between Brad N. Graves (the “Executive”) and Summit Midstream Partners, LLC, a Delaware limited liability company (together with any of its subsidiaries and affiliates as may employ the Executive from time to time, and any successor(s) thereto, the “Company”).

 

RECITALS

 

A.                                    The Company and the Executive are parties to an employment agreement, dated March 8, 2012 (the “Original Employment Agreement”).

 

B.                                    The Company and the Executive desire to amend and restate the Original Employment Agreement in the form hereof.

 

C.                                    The Company desires to assure itself of the continued services of the Executive by engaging the Executive to perform services under the terms hereof.

 

D.                                    The Executive desires to continue to provide services to the Company on the terms herein provided.

 

AGREEMENT

 

NOW, THEREFORE, in consideration of the foregoing and of the respective covenants and agreements set forth below the parties hereto agree as follows:

 

1.              Certain Definitions.

 

(a)                                 “AAA” shall have the meaning set forth in Section 19.

 

(b)                                 “Affiliate” shall mean, with respect to any Person, any other Person directly or indirectly controlling, controlled by, or under common control with, such Person where “control” shall have the meaning given such term under Rule 405 of the Securities Act of 1933, as amended from time to time.

 

(c)                                  “Agreement” shall have the meaning set forth in the preamble hereto.

 

(d)                                 “Annual Base Salary” shall have the meaning set forth in Section 3(a).

 

(e)                                  “Annual Bonus” shall have the meaning set forth in Section 3(b).

 

(f)                                   “Board” shall mean the Board of Managers of the Company or any successor governing body.

 

 

(g)                                  The Company shall have “Cause” to terminate the Executive’s employment hereunder upon:  (i) the Executive’s willful failure to substantially perform the duties set forth herein (other than any such failure resulting from the Executive’s Disability); (ii) the Executive’s willful failure to carry out, or comply with, in any material respect any lawful directive of the Board; (iii) the Executive’s commission at any time of any act or omission that results in, or may reasonably be expected to result in, a conviction, plea of no contest, plea of nolo contendere, or imposition of unadjudicated probation for any felony or crime involving moral turpitude; (iv) the Executive’s unlawful use (including being under the influence) or possession of illegal drugs on the Company’s premises or while performing the Executive’s duties and responsibilities hereunder; (v) the Executive’s commission at any time of any act of fraud, embezzlement, misappropriation, material misconduct, conversion of assets of the Company, or breach of fiduciary duty against the Company (or any predecessor thereto or successor thereof); or (vi) the Executive’s material breach of this Agreement, the SMM LLC Agreement or other agreements with the Company (including, without limitation, any breach of the restrictive covenants of any such agreement); and which, in the case of clauses (i), (ii) and (vi), continues beyond thirty (30) days after the Company has provided the Executive written notice of such failure or breach (to the extent that, in the reasonable judgment of the Board, such failure or breach can be cured by the Executive), so long as such notice is provided within ninety (90) days after the Company knew or should have known of such condition

 

(h)                                 “Change in Control” shall mean:  (i) any “person” or “group” within the meaning of Sections 13(d) and 14(d)(2) of the Exchange Act, other than the Company, Energy Capital Partners II, LP or any of their respective Affiliates (as determined immediately prior to such event), shall become the beneficial owners, by way of merger, acquisition, consolidation, recapitalization, reorganization or otherwise, of fifty percent (50%) or more of the combined voting power of the equity interests in the General Partner or the Partnership; (ii) the limited partners of the Partnership approve, in one or a series of transactions, a plan of complete liquidation of the Partnership, (iii) the sale or other disposition by the General Partner or the Partnership of all or substantially all of its assets in one or more transactions to any Person other than the Company, the General Partner, the Partnership, Energy Capital Partners II, LP or any of their respective Affiliates; or (iv) a transaction resulting in a Person other than the Company, the General Partner, Energy Capital Partners II, LP or any of their respective Affiliates (as determined immediately prior to such event) being the sole general partner of the Partnership.

 

2

 

(i)                                     “Change in Control Period” shall mean the period beginning six months prior to a change in Control and ending on the 12-month anniversary of the Change in Control.

 

(j)                                    “Code” shall mean the Internal Revenue Code of 1986, as amended.

 

(k)                                 “Company” shall, except as otherwise provided in Section 7(j), have the meaning set forth in the preamble hereto.

 

(l)                                     “Compensation Committee” shall mean the Compensation Committee of the Board, or if no such committee exists, the Board.

 

(m)                             “Date of Termination” shall mean (i) if the Executive’s employment is terminated due to the Executive’s death, the date of the Executive’s death; (ii) if the Executive’s employment is terminated due to the Executive’s Disability, the date determined pursuant to Section 4(a)(ii); (iii) if the Executive’s employment is terminated pursuant to Section 4(a)(iii)-(vi) either the date indicated in the Notice of Termination or the date specified by the Company pursuant to Section 4(b), whichever is earlier; or (iv) if the Executive’s employment is terminated pursuant to Section 4(a)(vii)-(viii), the date immediately following the expiration of the then-current Term.

 

(n)                                 “Disability” shall mean the Executive’s inability to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment that can be expected to result in death or that can be expected to last for a continuous period of not less than twelve (12) months as determined by a physician jointly selected by the Company and the Executive.

 

(o)                                 “Effective Date” shall have the meaning set forth in the preamble hereto.

 

(p)                                 “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended.

 

(q)                                 “Excise Tax” shall have the meaning set forth in Section 6(b).

 

(r)                                    “Executive” shall have the meaning set forth in the preamble hereto.

 

(s)                                   “Extension Term” shall have the meaning set forth in Section 2(b).

 

(t)                                    “First Payment Date” shall have the meaning set forth in Section 5(b)(ii).

 

(u)                                 “General Partner” means Summit Midstream GP, LLC, a Delaware limited liability company.

 

(v)                                 The Executive shall have “Good Reason” to terminate the Executive’s employment hereunder within two (2) years after the occurrence of one or

 

3

 

more of the following conditions without the Executive’s written consent:  (i) a material diminution in the Executive’s authority, duties, or responsibilities, as described herein; (ii) a material diminution in the Executive’s Annual Base Salary, target Annual Bonus (as a percentage of Annual Base Salary) or Annual Bonus range (as a percentage of Annual Base Salary), in each case as described herein; (iii) a material change in the geographic location at which the Executive must perform the Executive’s services hereunder that requires the Executive to relocate his residence to a location more than fifty (50) miles from Houston, Texas; or (iv) any other action or inaction that constitutes a material breach of this Agreement by the Company; and which, in the case of any of the foregoing, continues beyond thirty (30) days after the Executive has provided the Company written notice that the Executive believes in good faith that such condition giving rise to such claim of Good Reason has occurred, so long as such notice is provided within ninety (90) days after the initial existence of such condition.

 

(w)                               “Initial Term” shall have the meaning set forth in Section 2(b).

 

(x)                                 “Installment Payments” shall have the meaning set forth in Section 5(b)(ii).

 

(y)                                 “LTIP” shall mean the Summit Midstream Partners, LP 2012 Long-Term Incentive Plan adopted by the Partnership in connection with the Public Offering, and any additional long-term incentive plan adopted in the future and identified by the Company or the Partnership, in the adopting resolution or otherwise, as an “LTIP” pursuant hereto.

 

(z)                                  “Noncompete Option” shall mean the Company’s option, in its sole discretion, in the event of a termination of employment pursuant to Section 4(a)(vii) (Non-Extension of Term by the Company) or Section 4(a)(viii) (Non-Extension of Term by the Executive), to extend the Restricted Period through a date on or prior to the first (1st) anniversary of the Date of Termination, upon advance written notice to the Executive not less than thirty (30) days prior to the end of the then-current Term.

 

(aa)                          “Notice of Termination” shall have the meaning set forth in Section 4(b).

 

(bb)                          “Original Employment Agreement” shall have the meaning set forth in the recitals hereto.

 

(cc)                            “Partnership” means Summit Midstream Partners LP, a Delaware limited partnership.

 

(dd)                          “Performance Targets” shall have the meaning set forth in Section 3(b).

 

4

 

(ee)                            “Person” shall mean any individual, natural person, corporation (including any non-profit corporation), general partnership, limited partnership, limited liability partnership, joint venture, estate, trust, company (including any company limited by shares, limited liability company or joint stock company), incorporated or unincorporated association, governmental authority, firm, society or other enterprise, organization or other entity of any nature.

 

(ff)                              “Proprietary Information” shall have the meaning set forth in Section 7(d).

 

(gg)                            “Public Offering” shall mean the underwritten public offering of equity securities of the Partnership registered pursuant to Registration Statement 333-183466, filed by the Partnership with the Securities and Exchange Commission and effective as of September 27, 2012.

 

(hh)                          “Release” shall have the meaning set forth in Section 5(b)(ii).

 

(ii)                                  “Restricted Period” shall mean the period from the Effective Date through (i) with respect to any termination of employment (other than a termination of employment pursuant to Section 4(a)(vii) (Non-Extension of Term by the Company) or Section 4(a)(viii) (Non-Extension of Term by the Executive)), the first (1st) anniversary of the Date of Termination, and (ii) with respect to a termination of employment pursuant to Section 4(a)(vii) (Non-Extension of Term by the Company) or Section 4(a)(viii) (Non-Extension of Term by the Executive), the Date of Termination or, in the event that the Company exercises its Noncompete Option, the date elected by the Company thereunder.

 

(jj)                                “Section 409A” shall mean Section 409A of the Code and the Department of Treasury regulations and other interpretive guidance issued thereunder, including without limitation any such regulations or other guidance that may be issued after the Effective Date.

 

(kk)                          “Severance Payment” shall have the meaning set forth in Section 5(b)(i).

 

(ll)                                  “Severance Period” shall mean:  (A) if the Executive’s employment shall be terminated by the Company without Cause pursuant to Section 4(a)(iv) or by the Executive’s resignation for Good Reason pursuant to Section 4(a)(v), the period beginning on the Date of Termination and ending on the first (1st) anniversary of the Date of Termination, and (B) if the Executive’s employment shall be terminated due to non-extension of the Initial Term or any Extension Term by the Company pursuant to Section 4(a)(vii) or by the Executive pursuant to Section 4(a)(viii), but only if the Company exercises its Noncompete Option in connection with such termination, the period beginning on the Date of Termination and ending on the expiration date of the Restricted Period (as elected by the Company pursuant to its Noncompete Option).

 

5

 

(mm)                  “SMM LLC Agreement” shall mean that certain Limited Liability Company Agreement of Summit Midstream Management, LLC, a Delaware limited liability company, as it may be amended, modified or supplemented from time to time.

 

(nn)                          “Term” shall have the meaning set forth in Section 2(b).

 

(oo)                          “Total Payments” shall have the meaning set forth in Section 6(b).

 

2.              Employment.

 

(a)                                 In General.  The Company shall employ the Executive and the Executive shall enter the employ of the Company, for the period set forth in Section 2(b), in the position set forth in Section 2(c), and upon the other terms and conditions herein provided.

 

(b)                                 Term of Employment.  The initial term of employment under this Agreement (the “Initial Term”) shall be for the period beginning on the Effective Date and ending on the second (2nd) anniversary of the Effective Date, unless earlier terminated as provided in Section 4.  The Initial Term shall automatically be extended for successive one (1) year periods (each, an “Extension Term” and, collectively with the Initial Term, the “Term”), unless either party hereto gives notice of non-extension to the other no later than ninety (90) days prior to the expiration of the then-applicable Term.

 

(c)                                  Position and Duties.  During the Term, the Executive: (i) shall serve as Executive Vice President, Chief Commercial Officer of the Company, with responsibilities, duties and authority customary for such position, subject to direction by the Chief Executive Officer of the Company; (ii) shall report directly to the Chief Executive Officer of the Company; (iii) shall devote substantially all the Executive’s working time and efforts to the business and affairs of the Company and its subsidiaries, provided that the Executive may (1) serve on corporate, civic, charitable, industry or professional association boards or committees, subject to the Board’s prior written consent in the case of any such board or committee that relates directly or indirectly to the business of the Company or its subsidiaries (which consent shall not unreasonably be withheld), (2) deliver lectures, fulfill speaking engagements or teach at educational institutions and (3) manage his personal investments, so long as none of such activities meaningfully interferes with the performance of the Executive’s duties and responsibilities hereunder, or involves a conflict of interest with the Executive’s duties or responsibilities hereunder or a breach of the covenants contained in Section 7; and (4) agrees to observe and comply with the Company’s rules and policies as adopted by the Company from time to time, which have been made available to the Executive.

 

6

 

3.              Compensation and Related Matters.

 

(a)                                 Annual Base Salary.  During the Term, the Executive shall receive a base salary at a rate of $325,000 per annum, which shall be paid in accordance with the customary payroll practices of the Company, subject to review and upward, but not downward, adjustment by the Board in its sole discretion (the “Annual Base Salary”).

 

(b)                                 Annual Bonus.  With respect to each calendar year that ends during the Term, commencing with calendar year 2015, the Executive shall be eligible to receive an annual cash bonus (the “Annual Bonus”) ranging from zero to two hundred  percent (200%) of the Annual Base Salary, with a target Annual Bonus equal to one-hundred percent (100%) of the Annual Base Salary, based upon annual performance targets (the “Performance Targets”) established by the Board in its sole discretion. The amount of the Annual Bonus shall be based upon attainment of the Performance Targets, as determined by the Board (or any authorized committee of the Board) in its sole discretion.  Each such Annual Bonus shall be payable on such date as is determined by the Board, but in any event on or prior to March 15 of the calendar year immediately following the calendar year with respect to which such Annual Bonus relates.  Notwithstanding the foregoing, no bonus shall be payable with respect to any calendar year unless the Executive remains continuously employed with the Company during the period beginning on the Effective Date and ending on December 31 of such year; provided that if the Executive’s employment is terminated pursuant to Section 4(a)(i), (ii) or (iv), the Company shall pay to the Executive a prorated Annual Bonus with respect to the calendar year in which the Date of Termination occurs equal to the target Annual Bonus for such calendar year multiplied by a fraction, the numerator of which is the number of calendar days during such calendar year that the Executive was continuously employed by the Company and the denominator of which is 365 (the “Prorated Termination Bonus”); provided further that, in the case of a termination pursuant to Section 4(a)(iv), no portion of the Prorated Termination Bonus shall be paid unless the Executive timely executes the Release and does not revoke the Release within the time periods set forth in Section 5(b)(ii).

 

(c)                                  Benefits.  The Executive shall be eligible to participate in all benefit plans, programs and other arrangements of the Company that may be offered by the Company to its executives as a group (including, without limitation, medical and dental insurance and a 401(k) plan). During the lesser of the period during which Executive or a qualifying beneficiary (as defined in Section 607 of ERISA) has in effect an election for post-termination continuation coverage or conversion rights to medical and dental benefits under applicable law, including Section 4980 of the Code (“COBRA”), or the period ending on the 18-month anniversary of the Date of Termination, Executive (or, if applicable, the qualifying beneficiary) shall be entitled to such coverage at an out-of-pocket premium cost that does not exceed the out-of-pocket premium cost applicable to similarly situated active employees (and their eligible dependents).

 

7

 

(d)                                 Paid Time Off; Holidays.  During the Term, the Executive shall be entitled to four (4) weeks of paid time off (“PTO”) each full calendar year.  The PTO shall be used for vacation, sick days, and personal days.  Any PTO shall be taken at the reasonable and mutual convenience of the Company and the Executive. Holidays shall be provided in accordance with Company policy, as in effect from time to time.

 

(e)                                  Business Expenses.  During the Term, the Company shall reimburse the Executive for all reasonable travel and other business expenses incurred by the Executive in the performance of the Executive’s duties to the Company in accordance with the Company’s applicable expense reimbursement policies and procedures.

 

(f)                                   Tax Reimbursement.  During the Term, the Company shall reimburse the Executive for his personal tax preparation expenses up to an amount of $10,000 per annum.

 

4.              Termination.  The Executive’s employment hereunder may be terminated by the Company or the Executive, as applicable, without any breach of this Agreement only under the following circumstances:

 

(a)                                 Circumstances

 

(i)                                     Death.  The Executive’s employment hereunder shall terminate upon the Executive’s death.

 

(ii)                                  Disability.  If the Executive incurs a Disability, the Company may give the Executive written notice of its intention to terminate the Executive’s employment.  In that event, the Executive’s employment with the Company shall terminate, effective on the later of the thirtieth (30th) day after receipt of such notice by the Executive or the date specified in such notice; provided that within the thirty (30) day period following receipt of such notice, the Executive shall not have returned to full-time performance of the Executive’s duties hereunder.

 

(iii)                               Termination for Cause.  The Company may terminate the Executive’s employment for Cause.

 

(iv)                              Termination without Cause.  The Company may terminate the Executive’s employment without Cause.

 

(v)                                 Resignation for Good Reason.  The Executive may resign from the Executive’s employment for Good Reason.

 

(vi)                              Resignation without Good Reason.  The Executive may resign from the Executive’s employment without Good Reason.

 

8

 

(vii)                           Non-Extension of Term by the Company.  The Company may give notice of non-extension to the Executive pursuant to Section 2(b).  For the avoidance of doubt, non-extension of the Term by the Company shall not constitute termination by the Company without Cause.

 

(viii)                        Non-Extension of Term by the Executive.  The Executive may give notice of non-extension to the Company pursuant to Section 2(b).  For the avoidance of doubt, non-extension of the Term by the Executive shall not constitute resignation for Good Reason.

 

(b)                                 Notice of Termination.  Any termination of the Executive’s employment by the Company or by the Executive under this Section 4 (other than a termination pursuant to Section 4(a)(i) above) shall be communicated by a written notice to the other party hereto: (i) indicating the specific termination provision in this Agreement relied upon, (ii) except with respect to a termination pursuant to Sections 4(a)(iv), (vi), (vii) or (viii), setting forth in reasonable detail the facts and circumstances claimed to provide a basis for termination of the Executive’s employment under the provision so indicated, and (iii) specifying a Date of Termination which, if submitted by the Executive (or, in the case of a termination described in Section 4(a)(ii), by the Company), shall be at least thirty (30) days following the date of such notice (a “Notice of Termination”); provided, however, that a Notice of Termination delivered by the Company pursuant to Section 4(a)(ii) shall not be required to specify a Date of Termination, in which case the Date of Termination shall be determined pursuant to Section 4(a)(ii); and provided, further, that in the event that the Executive delivers a Notice of Termination (other than a notice of non-extension under Section 4(a)(viii) above) to the Company, the Company may, in its sole discretion, accelerate the Date of Termination to any date that occurs following the date of Company’s receipt of such Notice of Termination (even if such date is prior to the date specified in such Notice of Termination).  A Notice of Termination submitted by the Company may provide for a Date of Termination on the date the Executive receives the Notice of Termination, or any date thereafter elected by the Company in its sole discretion.  The failure by the Company or the Executive to set forth in the Notice of Termination any fact or circumstance which contributes to a showing of Cause or Good Reason shall not waive any right of the Company or the Executive hereunder or preclude the Company or the Executive from asserting such fact or circumstance in enforcing the Company’s or the Executive’s rights hereunder.

 

5.              Company Obligations Upon Termination of Employment.

 

(a)                                 In General.  Upon a termination of the Executive’s employment for any reason, the Executive (or the Executive’s estate) shall be entitled to receive: (i) any portion of the Executive’s Annual Base Salary through the Date of Termination not theretofore paid, (ii) any expenses owed to the Executive under Section 3(e), (iii) any accrued PTO pay owed to the Executive pursuant to Section 3(d), and (iv) any amount arising from the Executive’s participation in, or benefits under, any employee benefit plans, programs or arrangements under Section 3(c), which amounts shall be payable in accordance with the terms and conditions of such employee benefit plans, programs or arrangements. Any Annual Bonus earned for any calendar year completed prior to the Date of Termination, but unpaid prior to such date, and any Prorated Termination Bonus owed pursuant to the last sentence of Section 3(b) shall be paid 

 

9

 

within sixty (60) days after the Date of Termination (but in any event on or prior to March 15 of the calendar year immediately following such completed calendar year with respect to which such Annual Bonus or Prorated Termination Bonus was earned).  Except as otherwise set forth in Section 5(b) below, the payments and benefits described in this Section 5(a) shall be the only payments and benefits payable in the event of the Executive’s termination of employment for any reason.

 

(b)                                 Severance Payment

 

(i)                                     In the event of the Executive’s termination of employment under the circumstances described below, then, in addition to the payments and benefits described in Section 5(a) above, the Company shall, during the Severance Period, pay to the Executive an amount (the “Severance Payment”) calculated as described below:

 

(A)                               If the Executive’s employment shall be terminated by the Company without Cause pursuant to Section 4(a)(iv) or by the Executive’s resignation for Good Reason pursuant to Section 4(a)(v), in each case other than during the Change in Control Period, then the Severance Payment shall be an amount equal to the sum of (1) the Annual Base Salary for the year in which the Date of Termination occurs, and (2) the Annual Bonus paid to the Executive in respect of the calendar year immediately preceding the year in which the Date of Termination occurs.

 

(B)                               If the Executive’s employment shall be terminated by the Company without Cause pursuant to Section 4(a)(iv) or by the Executive’s resignation for Good Reason pursuant to Section 4(a)(v), in each case during the Change in Control Period, then the Severance Payment shall be an amount equal to one and one-half (1 1⁄2) times the sum of (1) the Annual Base Salary for the year in which the Date of Termination occurs, and (2) the Annual Bonus paid to the Executive in respect of the calendar year immediately preceding the year in which the Date of Termination occurs.

 

(C)                               If the Executive’s employment shall be terminated due to non-extension of the Initial Term or any Extension Term by the Company pursuant to Section 4(a)(vii) or by the Executive pursuant to Section 4(a)(viii), but only if the Company exercises its Noncompete Option in connection with such termination, then the Severance Payment shall be an amount equal to (1) the sum of (x) the Annual Base Salary for the year in which the Date of Termination occurs, and (y) the Annual Bonus paid to the Executive in respect of the calendar year immediately preceding the year in which the Date of Termination occurs, multiplied by (2) a fraction, the numerator of which is equal to the number of days from the Date of Termination through the expiration date of the Restricted Period (as elected by the Company pursuant to its Noncompete Option), and the denominator of which is 365.

 

10

 

(ii)                                  The Severance Payment shall be in lieu of notice or any other severance benefits to which the Executive might otherwise be entitled.  Notwithstanding anything herein to the contrary, (A) no portion of the Severance Payment shall be paid unless, on or prior to the thirtieth (30th) day following the Date of Termination, the Executive timely executes a general waiver and release of claims agreement substantially in the form attached hereto as Exhibit A (the “Release”), which Release shall not have been revoked by the Executive prior to the expiration of the period (if any) during which any portion of such Release is revocable under applicable law, and (B) as of the first date on which the Executive violates any covenant contained in Section 7, any remaining unpaid portion of the Severance Payment shall thereupon be forfeited.  Subject to the provisions of Section 9, the Severance Payment shall be paid in equal installments during the Severance Period, at the same time and in the same manner as the Annual Base Salary would have been paid had the Executive remained in active employment during the Severance Period, in accordance with the Company’s normal payroll practices in effect on the Date of Termination; provided that any installment that would otherwise have been paid prior to the first normal payroll payment date occurring on or after the thirtieth (30th) day following the Date of Termination (such payroll date, the “First Payment Date”) shall instead be paid on the First Payment Date.  For purposes of Section 409A (including, without limitation, for purposes of Section 1.409A-2(b)(2)(iii) of the Department of Treasury Regulations), the Executive’s right to receive the Severance Payment in the form of installment payments (the “Installment Payments”) shall be treated as a right to receive a series of separate payments and, accordingly, each Installment Payment shall at all times be considered a separate and distinct payment.

 

(c)                                  The provisions of this Section 5 shall supersede in their entirety any severance payment provisions in any severance plan, policy, program or other arrangement maintained by the Company.

 

6.              Change in Control.

 

(a)                                 Equity Awards.  Notwithstanding anything to the contrary in this Agreement or any other agreement, including the LTIP and any award agreement thereunder, all equity awards granted to the Executive under the LTIP  and held by the Executive as of immediately prior to a Change in Control, to the extent unvested, shall become fully vested immediately prior to the Change in Control.

 

(b)                                 Golden Parachute Excise Tax Protection.  Notwithstanding any provision of this Agreement, if any portion of the payments or benefits provided to the Executive hereunder, or under any other agreement with the Executive or any plan, policy or arrangement of the Company or any of its Affiliates (in the aggregate, “Total Payments”), would constitute an “excess parachute payment” and would, but for this Section 6(b), result in the imposition on the Executive of an excise tax under Section 4999 of the Code (the “Excise Tax”), then the Total Payments to be made to the Executive shall either be (i) delivered in full, or (ii) reduced by such amount such that no portion of the Total Payments would be subject to the Excise Tax, whichever of the foregoing results in the receipt by the Executive of the greatest benefit on an after-tax basis (taking into account the applicable federal, state and local income taxes and the Excise Tax).  The determination of whether a reduction in Total Payments is necessary and the

 

11

 

amount of any such reduction shall be made by the Company in its reasonable discretion and in reliance on its tax advisors.  If the Company so determines that a reduction in Total Payments is required, such reduction shall apply first pro rata to (A) cash payments subject to Section 409A of the Code as “deferred compensation” and (B) cash payments not subject to Section 409A of the Code (in each case with the cash payments otherwise scheduled to be paid latest in time reduced first), and then pro rata to (C) equity-based compensation subject to Section 409A of the Code as “deferred compensation” and (D) equity-based compensation not subject to Section 409A of the Code.

 

7.              Restrictive Covenants.

 

(a)                                 The Executive shall not, at any time during the Restricted Period, directly or indirectly engage in, have any equity interest in, or manage or operate any person, firm, corporation, partnership, business or entity (whether as director, officer, employee, agent, representative, partner, security holder, consultant or otherwise) that engages in (either directly or through any subsidiary or Affiliate thereof) any business or activity (i) relating to midstream assets (including, without limitation, the gathering, processing and transportation of natural gas and the transportation and storage of refined products other than natural gas) in North America, which competes with the business of the Company or any entity owned by the Company, or (ii) which the Company or any of its Affiliates has taken active steps to engage in or acquire, but only if the Executive directly or indirectly engages in, has any equity interest in, or manages or operates, such business or activity (whether as director, officer, employee, agent, representative, partner, security holder, consultant or otherwise).  Notwithstanding the foregoing, the Executive shall be permitted to acquire a passive stock or equity interest in such a business; provided that such stock or other equity interest acquired is not more than five percent (5%) of the outstanding interest in such business.

 

(b)                                 The Executive shall not, at any time during the Term or during the twelve (12)-month period immediately following the Date of Termination, directly or indirectly, either for himself or on behalf of any other entity, (i) recruit or otherwise solicit or induce any employee, customer, subscriber or supplier of the Company to terminate its employment or arrangement with the Company, or otherwise change its relationship with the Company, or (ii) hire, or cause to be hired, any person who was employed by the Company at any time during the twelve (12)-month period immediately prior to the Date of Termination or who thereafter becomes employed by the Company.

 

(c)                                  The provisions contained in Sections 7(a) and (b) may be altered and/or waived to be made less restrictive on the Executive with the prior written consent of the Board or the Compensation Committee.

 

(d)                                 Except as the Executive reasonably and in good faith determines to be required in the faithful performance of the Executive’s duties hereunder or in accordance with Section 7(f), the Executive shall, during the Term and after the Date of Termination, maintain in confidence and shall not directly or indirectly, use, disseminate, disclose or publish, or use for the Executive’s benefit or the benefit of any person, firm, corporation or other entity, any confidential or proprietary information or trade secrets of or relating to the Company, including, without limitation, information with respect to the Company’s operations, processes, protocols,

 

12

 

products, inventions, business practices, finances, principals, vendors, suppliers, customers, potential customers, marketing methods, costs, prices, contractual relationships, regulatory status, compensation paid to employees or other terms of employment (“Proprietary Information”), or deliver to any person, firm, corporation or other entity, any document, record, notebook, computer program or similar repository of or containing any such Proprietary Information.  The Executive’s obligation to maintain and not use, disseminate, disclose or publish, or use for the Executive’s benefit or the benefit of any person, firm, corporation or other entity, any Proprietary Information after the Date of Termination will continue so long as such Proprietary Information is not, or has not by legitimate means become, generally known and in the public domain (other than by means of the Executive’s direct or indirect disclosure of such Proprietary Information) and continues to be maintained as Proprietary Information by the Company.  The parties hereby stipulate and agree that as between them, the Proprietary Information identified herein is important, material and affects the successful conduct of the businesses of the Company (and any successor or assignee of the Company).

 

(e)                                  Upon termination of the Executive’s employment with the Company for any reason, the Executive will promptly deliver to the Company all correspondence, drawings, manuals, letters, notes, notebooks, reports, programs, plans, proposals, financial documents, or any other documents concerning the Company’s customers, business plans, marketing strategies, products or processes.

 

(f)                                   The Executive may respond to a lawful and valid subpoena or other legal process but shall give the Company (if lawfully permitted to do so) the earliest possible notice thereof, and shall, as much in advance of the return date as possible, make available to the Company and its counsel the documents and other information sought, and shall assist such counsel in resisting or otherwise responding to such process.  Upon notification from Executive of such subpoena or other legal process, but only to the extent that such notification is provided during the Restricted Period, the Company shall, at its reasonable expense, retain mutually acceptable legal counsel to represent Executive in connection with Executive’s response to any such subpoena or other legal process. The Executive may also disclose Proprietary Information if: (i) in the reasonable written opinion of counsel for the Executive furnished to the Company, such information is required to be disclosed for the Executive not to be in violation of any applicable law or regulation or (ii) the Executive is required to disclose such information in connection with the enforcement of any rights under this Agreement or any other agreements between the Executive and the Company.

 

(g)                                  The Executive agrees not to disparage the Company, any of its products or practices, or any of its directors, officers, agents, representatives, equity holders or Affiliates, either orally or in writing, at any time; provided that the Executive may confer in confidence with the Executive’s legal representatives, make truthful statements to any government agency in sworn testimony, or make truthful statements as otherwise required by law.  The Company agrees that, upon the termination of the Executive’s employment hereunder, it shall advise its directors and executive officers not to disparage the Executive, either orally or in writing, at any time; provided that they may confer in confidence with the Company’s and their legal representatives and make truthful statements as required by law.

 

13

 

(h)                                 Prior to accepting other employment or any other service relationship during the Restricted Period, the Executive shall provide a copy of this Section 7 to any recruiter who assists the Executive in obtaining other employment or any other service relationship and to any employer or person with which the Executive discusses potential employment or any other service relationship.

 

(i)                                     In the event the terms of this Section 7 shall be determined by any court of competent jurisdiction to be unenforceable by reason of its extending for too great a period of time or over too great a geographical area or by reason of its being too extensive in any other respect, it will be interpreted to extend only over the maximum period of time for which it may be enforceable, over the maximum geographical area as to which it may be enforceable, or to the maximum extent in all other respects as to which it may be enforceable, all as determined by such court in such action.

 

(j)                                    As used in this Section 7, the term “Company” shall include the Company, its parent, related entities, and any of its direct or indirect subsidiaries.

 

8.              Injunctive Relief.  The Executive recognizes and acknowledges that a breach of the covenants contained in Section 7 will cause irreparable damage to the Company and its goodwill, the exact amount of which will be difficult or impossible to ascertain, and that the remedies at law for any such breach will be inadequate.  Accordingly, the Executive agrees that in the event of a breach of any of the covenants contained in Section 7, in addition to any other remedy which may be available at law or in equity, the Company will be entitled to specific performance and injunctive relief.

 

9.              Section 409A.

 

(a)                                 General.  The parties hereto acknowledge and agree that, to the extent applicable, this Agreement shall be interpreted in accordance with, and incorporate the terms and conditions required by, Section 409A.  Notwithstanding any provision of this Agreement to the contrary, in the event that the Company determines that any amounts payable hereunder will be immediately taxable to the Executive under Section 409A, the Company reserves the right to (without any obligation to do so or to indemnify the Executive for failure to do so) (i) adopt such amendments to this Agreement or adopt such other policies and procedures (including amendments, policies and procedures with retroactive effect) that it determines to be necessary or appropriate to preserve the intended tax treatment of the benefits provided by this Agreement, to preserve the economic benefits of this Agreement and to avoid less favorable accounting or tax consequences for the Company and/or (ii) take such other actions it determines to be necessary or appropriate to exempt the amounts payable hereunder from Section 409A or to comply with the requirements of Section 409A and thereby avoid the application of penalty taxes thereunder.  Notwithstanding anything herein to the contrary, no provision of this Agreement shall be interpreted or construed to transfer any liability for failure to comply with the requirements of Section 409A from the Executive or any other individual to the Company or any of its Affiliates, employees or agents.

 

(b)                                 Separation from Service under Section 409A; Section 409A Compliance.  Notwithstanding anything herein to the contrary:  (i) no termination or other similar payments

 

14

 

and benefits hereunder shall be payable unless the Executive’s termination of employment constitutes a “separation from service” within the meaning of Section 1.409A-1(h) of the Department of Treasury Regulations; (ii) if the Executive is deemed at the time of the Executive’s separation from service to be a “specified employee” for purposes of Section 409A(a)(2)(B)(i) of the Code, to the extent delayed commencement of any portion of any termination or other similar payments and benefits to which the Executive may be entitled hereunder (after taking into account all exclusions applicable to such payments or benefits under Section 409A) is required in order to avoid a prohibited distribution under Section 409A(a)(2)(B)(i) of the Code, such portion of such payments and benefits shall not be provided to the Executive  prior to the earlier of (x) the expiration of the six (6)-month period measured from the date of the Executive’s “separation from service” with the Company (as such term is defined in the Department of Treasury Regulations issued under Section 409A) or (y) the date of the Executive’s death; provided that upon the earlier of such dates, all payments and benefits deferred pursuant to this Section 9(b)(ii) shall be paid in a lump sum to the Executive, and any remaining payments and benefits due hereunder shall be provided as otherwise specified herein; (iii) the determination of whether the Executive is a “specified employee” for purposes of Section 409A(a)(2)(B)(i) of the Code as of the time of the Executive’s separation from service shall be made by the Company in accordance with the terms of Section 409A (including, without limitation, Section 1.409A-1(i) of the Department of Treasury Regulations and any successor provision thereto); (iv) to the extent that any Installment Payments under this Agreement are deemed to constitute “nonqualified deferred compensation” within the meaning of Section 409A, for purposes of Section 409A (including, without limitation, for purposes of Section 1.409A-2(b)(2)(iii) of the Department of Treasury Regulations), each such payment that the Executive may be eligible to receive under this Agreement shall be treated as a separate and distinct payment; (v) to the extent that any reimbursements or corresponding in-kind benefits provided to the Executive under this Agreement are deemed to constitute “deferred compensation” under Section 409A, such reimbursements or benefits shall be provided reasonably promptly, but in no event later than December 31 of the year following the year in which the expense was incurred, and in any event in accordance with Section 1.409A-3(i)(1)(iv) of the Department of Treasury Regulations; and (vi) the amount of any such payments or expense reimbursements in one calendar year shall not affect the expenses or in-kind benefits eligible for payment or reimbursement in any other calendar year, other than an arrangement providing for the reimbursement of medical expenses referred to in Section 105(b) of the Code, and the Executive’s right to such payments or reimbursement of any such expenses shall not be subject to liquidation or exchange for any other benefit.

 

15

 

10.       Assignment and Successors.  The Company may assign its rights and obligations under this Agreement to any entity, including any successor to all or substantially all the assets of the Company, by merger or otherwise, and may assign or encumber this Agreement and its rights hereunder as security for indebtedness of the Company and its Affiliates.  The Executive may not assign the Executive’s rights or obligations under this Agreement to any individual or entity.  This Agreement shall be binding upon and inure to the benefit of the Company, the Executive and their respective successors, assigns, personnel and legal representatives, executors, administrators, heirs, distributees, devisees, and legatees, as applicable.

 

11.       Governing Law.  This Agreement shall be governed, construed, interpreted and enforced in accordance with the substantive laws of the State of Delaware, without reference to the principles of conflicts of law of Delaware or any other jurisdiction, and where applicable, the laws of the United States.

 

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

 

13.       Notices.  Any notice, request, claim, demand, document and other communication hereunder to any party hereto shall be effective upon receipt (or refusal of receipt) and shall be in writing and delivered personally or sent by telex, telecopy, or certified or registered mail, postage prepaid, to the following address (or at any other address as any party hereto shall have specified by notice in writing to the other party hereto):

 

 

(a)                                 If to the Company:

 

Summit Midstream Partners, LLC

5910 North Central Expressway

Suite 350

Dallas, Texas 75206

Attn:  Brock Degeyter

Facsimile:  (214) 462-7716

 

with copies to:

 

Energy Capital Partners

51 John F. Kennedy Parkway, Suite 200
 Short Hills, New Jersey 07078

Attn: Tom Lane

Facsimile: (973) 671-6101

 

16

 

and:

 

Energy Capital Partners

11943 El Camino Real, Suite 220

San Diego, California 92130

Attn: Andrew D. Singer

Facsimile: (858) 703-4401

 

and:

 

Latham & Watkins LLP

885 Third Avenue

New York, New York 10022-4802

Attn:  Jed W. Brickner

Facsimile:  (212) 751-4864

 

(b)                                 If to the Executive, at the address set forth on the signature page hereto.

 

17

 

14.       Counterparts.  This Agreement may be executed in several counterparts, each of which shall be deemed to be an original, but all of which together will constitute one and the same Agreement.

 

15.       Entire Agreement.  This Agreement (together with any other agreements and instruments contemplated hereby or referred to herein) is intended by the parties hereto to be the final expression of their agreement with respect to the employment of the Executive by the Company and may not be contradicted by evidence of any prior or contemporaneous agreement (including, without limitation, any term sheet or offer letter).  The parties hereto further intend that this Agreement shall constitute the complete and exclusive statement of its terms and that no extrinsic evidence whatsoever may be introduced in any judicial, administrative, or other legal proceeding to vary the terms of this Agreement.  This Agreement expressly supersedes the Original Employment Agreement.

 

16.       Amendments; Waivers.  This Agreement may not be modified, amended, or terminated except by an instrument in writing, signed by the Executive and a duly authorized officer of the Company and approved by the Board, which expressly identifies the amended provision of this Agreement. By an instrument in writing similarly executed and approved by the Board, the Executive or a duly authorized officer of the Company may waive compliance by the other party or parties hereto with any provision of this Agreement that such other party was or is obligated to comply with or perform; provided, however, that such waiver shall not operate as a waiver of, or estoppel with respect to, any other or subsequent failure to comply or perform.  No failure to exercise and no delay in exercising any right, remedy, or power hereunder shall preclude any other or further exercise of any other right, remedy, or power provided herein or by law or in equity.

 

17.       No Inconsistent Actions.  The parties hereto shall not voluntarily undertake or fail to undertake any action or course of action inconsistent with the provisions or essential intent of this Agreement.  Furthermore, it is the intent of the parties hereto to act in a fair and reasonable manner with respect to the interpretation and application of the provisions of this Agreement.

 

18.       Construction.  This Agreement shall be deemed drafted equally by both of the parties hereto.  Its language shall be construed as a whole and according to its fair meaning.  Any presumption or principle that the language is to be construed against any party hereto shall not apply.  The headings in this Agreement are only for convenience and are not intended to affect construction or interpretation.  Any references to paragraphs, subparagraphs, sections or subsections are to those parts of this Agreement, unless the context clearly indicates to the contrary.  Also, unless the context clearly indicates to the contrary, (a) the plural includes the singular and the singular includes the plural; (b) “and” and “or” are each used both conjunctively and disjunctively; (c) “any,” “all,” “each,” or “every” means “any and all,” and “each and every”; (d) “includes” and “including” are each “without limitation”; (e) “herein,” “hereof,” “hereunder” and other similar compounds of the word “here” refer to the entire Agreement and not to any particular paragraph, subparagraph, section or subsection; and (f) all pronouns and any variations thereof shall be deemed to refer to the masculine, feminine, neuter, singular or plural as the identity of the entities or persons referred to may require.

 

18

 

19.       Arbitration.  Any dispute or controversy based on, arising under or relating to this Agreement shall be settled exclusively by final and binding arbitration, conducted before a single neutral arbitrator in Dallas, Texas in accordance with the Employment Arbitration Rules and Mediation Procedures of the American Arbitration Association (the “AAA”) then in effect.  Arbitration may be compelled, and judgment may be entered on the arbitration award in any court having jurisdiction; provided, however, that the Company shall be entitled to seek a restraining order or injunction in any court of competent jurisdiction to prevent any continuation of any violation of the provisions of Section 7, and the Executive hereby consents that such restraining order or injunction may be granted without requiring the Company to post a bond.  Only individuals who are (a) lawyers engaged full-time in the practice of law and (b) on the AAA roster of arbitrators shall be selected as an arbitrator.  Within twenty (20) days of the conclusion of the arbitration hearing, the arbitrator shall prepare written findings of fact and conclusions of law.  The arbitrator shall be entitled to award any relief available in a court of law.  Each party shall bear its own costs and attorneys’ fees in connection with an arbitration; provided that the Company shall bear the cost of the arbitrator and the AAA’s administrative fees.

 

20.       Enforcement.  If any provision of this Agreement is held to be illegal, invalid or unenforceable under present or future laws effective during the term of this Agreement, such provision shall be fully severable; this Agreement shall be construed and enforced as if such illegal, invalid or unenforceable provision had never comprised a portion of this Agreement; and the remaining provisions of this Agreement shall remain in full force and effect and shall not be affected by the illegal, invalid or unenforceable provision or by its severance from this Agreement.  Furthermore, in lieu of such illegal, invalid or unenforceable provision there shall be added automatically as part of this Agreement a provision as similar in terms to such illegal, invalid or unenforceable provision as may be possible and be legal, valid and enforceable.

 

21.       Withholding.  The Company shall be entitled to withhold from any amounts payable under this Agreement, any federal, state, local or foreign withholding or other taxes or charges which the Company is required to withhold.  The Company shall be entitled to rely on an opinion of counsel if any questions as to the amount or requirement of withholding shall arise.

 

22.       Absence of Conflicts; Executive Acknowledgement.  The Executive hereby represents that from and after the Effective Date the performance of the Executive’s duties hereunder will not breach any other agreement to which the Executive is a party.  The Executive acknowledges that the Executive has read and understands this Agreement, is fully aware of its legal effect, has not acted in reliance upon any representations or promises made by the Company other than those contained in writing herein, and has entered into this Agreement freely based on the Executive’s own judgment.

 

23.       Survival.  The expiration or termination of the Term shall not impair the rights or obligations of any party hereto which shall have accrued prior to such expiration or termination.

 

[Signature pages follow]

 

19

 

IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the date and year first above written.

 

	
 
    	
 
    
	
 
    	
COMPANY
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Steven J. Newby
    
	
 
    	
Name:   Steven J. Newby
    
	
 
    	
Title:   President and Chief Executive Officer
    

 

Signature Page to the

Employment Agreement for Brad Graves

 

 

	
 
    	
EXECUTIVE
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Brad N. Graves
    
	
 
    	
Brad   N. Graves
    

 

Signature Page to the

Employment Agreement for Brad Graves

 

 

EXHIBIT A

 

Form of Release

 

Brad Graves (the “Executive”) agrees for the Executive, the Executive’s spouse and child or children (if any), the Executive’s heirs, beneficiaries, devisees, executors, administrators, attorneys, personal representatives, successors and assigns, hereby forever to release, discharge, and covenant not to sue Summit Midstream Partners, LLC, a Delaware limited liability company (the “Company”), and any of its past, present, or future parent, affiliated, related, and/or subsidiary entities, and all of the past and present directors, shareholders, officers, general or limited partners, employees, agents, and attorneys, and agents and representatives of such entities, and employee benefit plans in which the Executive is or has been a participant by virtue of his employment with the Company (collectively, the “Releasees”), from any and all claims, debts, demands, accounts, judgments, rights, causes of action, equitable relief, damages, costs, charges, complaints, obligations, promises, agreements, controversies, suits, expenses, compensation, responsibility and liability of every kind and character whatsoever (including attorneys’ fees and costs), whether in law or equity, known or unknown, asserted or unasserted, suspected or unsuspected, which the Executive has or may have had against such Releasees based on any events or circumstances arising or occurring on or prior to the date this release (the “Release”) is executed, arising directly or indirectly out of, relating to, or in any other way involving in any manner whatsoever, (a) the Executive’s employment with the Company or its subsidiaries or the termination thereof or (b) the Executive’s status at any time as a holder of any securities of the Company, and any and all claims arising under federal, state, or local laws relating to employment, or securities, including without limitation claims of wrongful discharge, breach of express or implied contract, fraud, misrepresentation, defamation, or liability in tort, claims of any kind that may be brought in any court or administrative agency, any claims arising under Title VII of the Civil Rights Act of 1964, the Age Discrimination in Employment Act, the Americans with Disabilities Act, the Fair Labor Standards Act, the Employee Retirement Income Security Act, the Family and Medical Leave Act, the Securities Act of 1933, the Securities Exchange Act of 1934, the Sarbanes-Oxley Act, and similar state or local statutes, ordinances, and regulations; provided, however, notwithstanding anything to the contrary set forth herein, that this Release shall not extend to (i) benefit claims under employee pension or welfare benefit plans in which the Executive is a participant by virtue of his employment with the Company or its subsidiaries, (ii) any rights under that certain Amended and Restated Employment Agreement, dated as of [    ], 2015, by and between the Company and the Executive, (iii) any rights of indemnification the Executive may have under any written agreement between the Executive and the Company (or its affiliates), the Company’s Certificate of Incorporation, the Partnership’s LP Agreement, the General Corporation Law of the State of Delaware, any applicable statute or common law, or pursuant to any applicable insurance policy, (iv) unemployment compensation, (v) contractual rights to vested equity awards, (vi) COBRA benefits and (viii) any rights that may not be waived as a matter of law.

 

The Executive understands that this Release includes a release of claims arising under the Age Discrimination in Employment Act (ADEA).  The Executive understands and warrants that he has been given a period of 21 days to review and consider this Release.  The Executive further warrants that he understands that he may use as much or all of his 21-day period as he wishes before signing, and warrants that he has done so.  The Executive further warrants that he understands that, with respect to the release of age discrimination claims only,

 

A-1

 

he/ has a period of seven days after executing on the second signature line below to revoke the release of age discrimination claims by notice in writing to the Company.

 

The Executive is hereby advised to consult with an attorney prior to executing this Release.  By his signature below, the Executive warrants that he has had the opportunity to do so and to be fully and fairly advised by that legal counsel as to the terms of this Release.

 

ACKNOWLEDGEMENT (AS TO ALL CLAIMS
 OTHER THAN AGE DISCRIMINATION CLAIMS)

 

The undersigned, having had full opportunity to review this Release with counsel of his choosing, signifies his agreement to the terms of this Release (other than as it relates to age discrimination claims) by his signature below.

 

	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
Brad   Graves
    	
 
    	
Date
    

 

ACKNOWLEDGEMENT (AGE DISCRIMINATION CLAIMS)

 

The undersigned, having had full opportunity to review this Release with counsel of his choosing, signifies his agreement to the terms of this Release (as it relates to age discrimination claims) by his signature below.

 

	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
Brad   Graves
    	
 
    	
Date
    

 

A-2EX-10.16

 Exhibit 10.16 

PRODUCT SUPPLY AGREEMENT 
 This Product
Supply Agreement (“Agreement”) is between Seagate Technology LLC (“Seagate”) and the supplier identified below (“Supplier”). The individuals signing this Agreement represent that they are authorized to sign on behalf of
their companies. 
  

									
	 Seagate Technology LLC
	 	 	 	 eASIC Corporation

					
	Signature:	 	 /s/ Bruce A. Sanders
	 		 	Signature:	 	 /s/ Ronnie Vasishta

	Print Name:	 	Bruce A. Sanders	 		 	Print Name:	 	Ronnie Vasishta
	Title:	 	Vice President	 		 	Title:	 	President and CEO
	Date:	 	06/28/2010	 		 	Date:	 	05/24/2010
	Address for Notices to Seagate:	 	 Attn: Corporate Contracts
 Mailstop SV15A2

Seagate Technology LLC
 920 Disc Drive

Scotts Valley, CA 95066
	 		 	Address for Notices to Supplier:	 	 Attn: Ronnie Vasishta
 2585 Augustine
Drive
 Suite 100
 Santa Clara, CA 95054

ronnie@eASIC.com

	Phone No.:	 	(831) 439-7288	 		 	Phone No.:	 	408-855-9200
	Fax No.	 	(831) 438-7132	 		 	Fax No.	 	408-855-9201
					
	Effective Date:	 	 	 	 	 	 	 	 
	Expiration Date:	 		 		 		 	
	Agreement #:	 	80364	 		 		 	

 The parties agree as follows: 
  

	1.	PRODUCT ORDERS 

 1.1 Product and Price List. Exhibit A provides a
list of products (“Products”) that Seagate may purchase from Supplier and the prices that Supplier will charge. Seagate and Supplier may update the price list from time to time by agreement to reflect changes to the Products or prices.

 1.2 Purchase Orders. Seagate will order Product by submitting purchase orders to Supplier. Seagate’s purchase orders will
contain, at a minimum: (a) Product description; (b) quantity; (c) price; (d) Seagate’s ship-to and bill-to addresses; (e) requested delivery date; and (f) an indication whether the Product is subject to sales tax.
Seagate may issue two types of purchase orders, “discrete” purchase orders and “blanket” purchase orders, as described below: 

(a) Discrete Purchase Orders. A discrete purchase orders is an order for a discrete amount of Product to be delivered on
a specified delivery date. Discrete purchase orders are firm commitments by Seagate, but may be cancelled or rescheduled as specified in this Agreement. 

(b) Blanket Purchase Orders. A blanket purchase order is an order for an amount of Product to be determined in the
future and to be delivered over a period of time. Seagate uses blanket purchase orders as an administrative convenience to track orders and to give Supplier a reference number for invoicing. Blanket purchase orders are treated as forecasts only and
are non-binding on Seagate. 

 1.3 Order Acceptance. All orders placed under this Agreement, will be deemed accepted by
Supplier unless Supplier notifies Seagate in writing to the contrary within [*] after receiving the order. Supplier will accept (by issuing an order acknowledgement) or reject (which may be via e-mail) a Purchase Order within [*] after receipt. If
no acceptance or rejection is given with [*], then Seagate will contact Supplier to confirm receipt of the Purchase Order. 
 1.4 This
Agreement Controls. If the terms of this Agreement contradict the terms of any purchase order or order acceptance, the terms of this Agreement will take precedence. No boilerplate terms in either party’s order-tracking documents will apply.

 1.5 Right to Incorporate and Resell. Seagate may incorporate the Products into Seagate products and may resell the Products in any
market Seagate elects. 
  

	2.	PRICING 

 2.1 [*] 

2.2 Third Party Purchasers. Seagate’s Contract Manufacturer may purchase Products directly from Supplier at the same prices as set
forth in this Agreement, so long as the Contract Manufacturer purchases the products to incorporate into Seagate products; provided that (i) at Supplier’s option, Seagate and Supplier will make arrangements to mask the prices being paid by
Seagate; (ii) the purchases of Products by Seagate’s Contract Manufacturer will apply against the Committed DELFOR and Long-Term Forecasts hereunder, and (iii) the payment terms between Supplier and Seagate’s Contract
Manufacturer will be negotiated between them. Seagate agrees that Supplier may, if after notice to Seagate and a reasonable time to cure, withhold delivery of product to Contract Manufacturers who are delinquent in payment or in breach of other
terms of the terms so agreed. Seagate’s affiliates that control, are controlled by, or are under common control with Seagate may purchase Products under this Agreement directly from Supplier at the same best in class prices and terms as
described above. Unaffiliated third parties are not beneficiaries under this Agreement and are not entitled to enforce this Agreement against either party. Supplier is responsible for entering into separate agreements with any unaffiliated third
parties. 
 2.3 [*] 
 2.4
Audit. Seagate may have a third party audit Supplier’s records to confirm that Supplier is in compliance with Section 2.1. Supplier may mask the identities of other customers to comply with its obligations of confidentiality.
Seagate will give Supplier reasonable notice before any audit, and will bear the cost of the audit. If the audit discloses that Supplier has not complied with this Section 2.1, Supplier will immediately refund Seagate the difference in the
amount it should have charged Seagate; and Supplier will also reimburse Seagate for the cost of the audit. 
  

	3.	SHIPMENT AND DELIVERY 

 3.1 Incoterms. Unless specified otherwise on
Exhibit A, Supplier will ship all Products to Seagate [*]. 
 (a) The term [*] means [*]. Supplier will pay the costs
and bear the risk of loss to [*]. Supplier will pay the costs and bear the risk of loss for any warehousing before delivery to [*]. 

(b) The destination will always [*]. 

3.2 Just-in-Time Warehouse and Supplier Managed Inventory. If requested by Seagate, Supplier will establish a “just-in-time”
inventory delivery system in a Seagate-designated warehouse (“JIT 

 
Warehouse”) or a “vendor managed inventory” stocking location system at a Seagate-designated location on Seagate’s premises (“SMI Stocking Location”) where Supplier
will maintain an inventory of its Products. Supplier will be responsible for the costs and risk of loss for its Products at the JIT Warehouse or SMI Stocking Location. Seagate will determine a minimum level of inventory of Products to be maintained
in the JIT Warehouse or SMI Stocking Location. Supplier will replenish the JIT Warehouse or SMI Stocking Location to the minimum inventory levels as Seagate pulls Products from either location. After receiving Seagate’s notice to pull Product,
Supplier will have Products shipped from the JIT Warehouse or SMI Stocking Location to Seagate. 
 3.3 Import and Export Formalities.
If Products will be exported or imported before arriving at Seagate’s final ship-to destination, [*] will be the exporter of record and will be responsible for performing all export formalities; [*] will be the importer of record and will be
responsible for performing all import formalities. For imports to the United States, [*] will provide the customs clearance documentation specified in Exhibit B. 

3.4 On-Time Delivery. Supplier will deliver Products to Seagate on the delivery date specified in Seagate’s order. If Supplier
does not deliver any Product within [*] of the scheduled delivery date, then Seagate may require Supplier to ship Product by an expedited mode of transportation at Supplier’s expense. Alternatively, Seagate may purchase substitute product and
charge Supplier any additional cost incurred, including the difference between a higher price charged for the substitute product and the price Seagate would have paid to Supplier for the Product. 

3.5 Packaging and Marking. Supplier will mark the Products for shipment as designated by Seagate. Supplier will package the Products
for shipment in accordance with standard commercial practices acceptable to common carriers at the lowest shipping rate available. Supplier’s shipping containers must display: (a) the date of shipment; (b) Seagate’s order number;
(c) the Product part number; (d) the Product revision level and lot number; and (e) the quantity in the container. 
 3.6
Global Supply Chain Security Program Participation. Supplier will complete Seagate’s Supplier Survey as requested by Seagate. In the event that Supplier begins volume shipments of Product into the United States, upon request of Seagate
Supplier agrees to pursue Customs-Trade Partnership Against Terrorism (“C-TPAT”) compliance. Seagate will notify Supplier of any change in its shipping locations that would impact this paragraph. 

 

	4.	INVOICING AND PAYMENT 

 4.1 Invoices and Payment Terms. Supplier may
invoice Seagate with each delivery, but not more frequently than as designated by Seagate’s local finance department. Payment will be due [*] days from the date Seagate receives the invoice. [*] 

4.2 Right to Offset. Seagate may offset against payments due to Supplier any amounts due to Seagate from Supplier. 

 

	5.	PRODUCT SPECIFICATIONS AND CHANGES 

 5.1 Product Specifications.
Supplier will comply with the Product descriptions and specifications referenced in Exhibit C, and any other agreed upon specifications, standard operating procedures, or processes furnished or adopted by Seagate (collectively the
“Specifications”). 
 5.2 Specification Changes. Supplier may not change the form, fit, or function of any
Product, or its manufacturing process or manufacturing location, without Seagate’s prior written approval. Seagate may change the Specifications at any time. Supplier will use [*] to comply with the changes. If Supplier

 
believes that a change will require an adjustment in Supplier’s costs or time for performance, then Supplier must request the adjustment in writing within [*] of receiving Seagate’s
change notice. Supplier shall not be required to implement the change until the Parties have agreed on revised terms. 
 5.3 Product
Information. Supplier will provide the following information regarding the Products to Seagate upon request: 
 (a) a
bill of materials that includes all material used in manufacturing or assembly processes; 
 (b) a list of component and
process sub-suppliers; 
 (c) a complete diagram flow chart for all Products with lead-time identified for key process steps;
and 
 (d) a description of the Product manufacturing process and a list of the equipment used in the manufacturing process.

 5.4 Seagate Property. Supplier will return to Seagate any tools, drawings, or other materials provided by Seagate at the
termination of this Agreement or upon Seagate’s request. 
  

	6.	FORECASTS, CAPACITY PLANNING, AND FLEXIBILITY 

 6.1 Forecasts. Seagate will
provide [*] rolling forecast (“Delfor”) and a long term forecast to Supplier. Other than the quantities in the Delfor within Lead Time and the Upside Flexibility quantities maintained per Exhibit E which are binding, Seagate’s
forecasts are not binding on Seagate. Supplier will secure and allocate capacity in accordance with the Delfor accepted by Supplier. Supplier will treat any Blanket Purchase Order issued by Seagate as a forecast for purposes of allocating capacity.
Lead Time refers to the agreed upon number of weeks required from Order placement to the time Product is made available for shipment. 
 6.2
Capacity Planning. Supplier will provide a written notice to Seagate within [*] after receiving Seagate’s forecasts, confirming it will meet Seagate’s forecasts. Supplier will notify Seagate [*] if it is unable to meet any forecast.
Supplier will procure and maintain all necessary equipment, personnel, facilities, and other materials required to manufacture Products according to the Specifications in volumes sufficient to meet Seagate’s forecasts. At Seagate’s
request, Supplier will meet with Seagate to plan Supplier’s capacity. 
 6.3 End-of-Life Capacity. Supplier will give Seagate at
least [*] before it stops accepting orders for any Product. During the [*] notice period, Seagate may continue to place orders for the discontinued Product. Seagate may schedule deliveries of the discontinued Product for up to [*] after the last
date that Supplier will accept orders. In the event that eASIC intends to discontinue the manufacture and/or sale of any Product, eASIC will give at least [*] prior written notice to Seagate. During such period (“Discontinuance Period”)
Seagate may place end-of-life orders for such Product, provided, that the last delivery date shall not be later than [*] after the end of the Discontinuance Period. 
  

	7.	PRODUCT WARRANTY 

 7.1 Warranty Period. The warranty period for the
Products will be [*] from the date of delivery to Seagate unless a different warranty period is specified in Exhibit A. 
 7.2
Warranties Terms. During the warranty period Supplier warrants the following: 
 (a) The Products will fully comply
with the Specifications; 

 (b) The Products will fully comply with Seagate’s Product Stewardship
Requirements; 
 (c) The Products will be free from defects in material, workmanship and design; 

7.3 Warranty Remedies. If the Products do not meet the warranties, Seagate may elect one or more of the following remedies: 

(a) Seagate may require Supplier to repair or replace the Products; 

(b) Seagate may return the Products to Supplier at Supplier’s expense for a full refund; 

7.4 Remedies Exclusive. The remedies listed above are exclusive and in lieu of all other remedies available to Seagate in law or
equity. Subject to Section 6.3 of this Agreement, the obligation to provide repaired or replacement Products during the warranty period continues whether or not Supplier has discontinued manufacturing the Products. 

 

	8.	RELIANCE ON SUPPLIER 

 8.1 Advice Regarding Intended Use. Supplier will
assign personnel to work directly with Seagate who are reasonably qualified to advise Seagate in the selection and use of Supplier’s Products. [*]. 

8.2 Return of Product. If a Product does not [*], then Seagate may return the Product to Supplier as non-conforming, even if the
Product meets the Specifications. 
 8.3 Limits on Reliance. Supplier will have no obligation to accept return of non-conforming
Products under this Section 8, if Seagate does not disclose sufficient information about its intended use of Products, or if Supplier warns Seagate in writing of a potential problem with Seagate’s intended use of Products and Seagate
disregards Supplier’s warnings. 
  

	9.	ONGOING QUALITY AND RELIABILITY 

 9.1 Manufacturing Process Inspections.
Supplier will cooperate with Seagate and use its commercially reasonable best efforts to facilitate Seagate’s inspection (at Seagate’s expense) of Supplier’s third party manufacturing locations, warehouses, and other facilities during
normal business hours with reasonable notice to Supplier. Supplier will provide Seagate with its own inspection, quality and reliability data upon request. 
  

	10.	INDEMNIFICATION AND DEFENSE 

 10.1 General Indemnification. Each party will
defend and indemnify the other and that party’s affiliates, directors, employees and contractors (collectively “Indemnitees”) against any claim or action brought by a third party against an Indemnitee arising from (a) an
allegation of the indemnitor’s negligence or willful misconduct; or (b) Supplier’s failure to comply with Seagate’s Product Stewardship Requirements. 

10.2 Infringement Indemnification. [*] will defend and indemnify each Indemnitee against any claim or action brought by a third party
against an Indemnitee, alleging that [*] infringes a patent, copyright, trademark, trade secret, trade name, trade dress, mask work or other intellectual property right. 

10.3 [*] Obligations. [*] must promptly notify [*] of the claim or action and give reasonable assistance and cooperation to [*] in the
defense of the claim or action. 
 10.4 Payment of Damages and Defense Costs. Supplier will pay all damages awarded or agreed to in
settlement against an Indemnitee. Supplier will pay all reasonable costs incurred by an Indemnitee in defending the claim or action. Supplier will not be obligated to pay damages to an Indemnitee to the extent

 
that the damages were caused by (a) an Indemnitee’s own willful misconduct; (b) an Indemnitee’s use of Supplier’s Products in combination with other products if the sole
cause of the infringement is the other products; or (c) an Indemnitee’s modification to the Products made without Supplier’s knowledge. 
  

	11.	LIMITATION OF LIABILITY 

 11.1 Limitation of Amount of Liability. Except
for liability arising under Exhibit F, neither party will be liable to the other, regardless of the basis of liability or the form of action, as follows: Seagate’s liability is limited to the total price paid by Seagate to Supplier, net of all
discounts and refunds, over the [*] period before the liability arose. Supplier’s liability shall not exceed for each occurrence, [*] preceding the claim giving rise to the liability or in the aggregate the amount paid or payable by Seagate to
Supplier over the life of this Agreement. 
 11.2 Limitation of Type of Liability. Except for liability arising under Section 10
and Exhibit F, neither party will be liable for any consequential, incidental, indirect, special, economic, or punitive damages even if the other party has been advised of the possibility of such damages. 

 

	12.	TERM AND TERMINATION 

 12.1 Effective Date and Expiration Date. This
Agreement is effective from the Effective Date through the Expiration date shown on the first page. 
 12.2 Renewal. After the
Expiration Date, this Agreement will automatically renew for successive [*] terms unless either party notifies the other party that they will not renew the Agreement at the end of the then-current term. 

12.3 Termination for Convenience. Seagate may terminate this Agreement for any reason by providing [*] prior written notice to
Supplier. 
 12.4 Termination for Cause. Either party may terminate this Agreement immediately if (a) the other party breaches a
material obligation of this Agreement that by its nature is incurable; (b) if the party breaches a material obligation that may be cured and the breach is not cured within [*] after notice by the non-breaching party; (c) a receiver is
appointed for the other party or its property; (d) the other party makes an assignment for benefit of its creditors; (e) proceedings are commenced by or for the other party under any bankruptcy, insolvency, or debtor’s relief law, or
(f) the other party liquidates or dissolves its business or attempts to do so. 
 12.5 Effect of Termination or Expiration. Upon
termination or expiration of this Agreement, its provisions will continue to apply to all undelivered orders that were accepted by Supplier while the Agreement was in force. Upon termination of this Agreement, Seagate will compensate Supplier as
provided in Exhibit E. 
  

	13.	DISPUTE RESOLUTION 

 13.1 Good-Faith Negotiation. The parties will attempt
to resolve any dispute relating to this Agreement through good-faith informal negotiation. 
 13.2 Mediation. If the parties are
unable to resolve the dispute through good faith informal negotiation, they will participate in mediation before an agreed mediator from Judicial Arbitration and Mediation Services (“JAMS”). Either party may initiate mediation by providing
a written request for mediation to the other party and to JAMS. The request must describe the dispute and the relief requested. The mediation will be scheduled within ten business days after the request. The mediation will take place at

 
a JAMS facility in California. The parties will cooperate with JAMS and with one another in selecting a mediator from a JAMS panel of neutrals, and in scheduling the mediation proceedings. The
parties will participate in the mediation in good faith. The parties will bear their own expenses in mediation, but will share all fees to JAMS equally. 

13.3 Equitable Relief Excluded. Either party may seek equitable relief to enforce the rights granted in Section 10 or to obtain a
temporary restraining order or other provisional remedy to preserve the status quo or prevent irreparable harm. 
 13.4 Survival and
Attorney’s Fees. This Section 13 will survive the Agreement’s termination or expiration. This Section 13 may be enforced by any court of competent jurisdiction, and a party seeking enforcement will be entitled to an award of
all costs, fees and expenses, including attorney’s fees, to be paid by the party against whom enforcement is ordered. 
  

	14.	INSURANCE 

 14.1 Minimum Insurance Requirements. Supplier will maintain
Commercial General Liability insurance of not less than $[*] Combined Single Limit for Bodily Injury and Property Damage. Supplier’s general liability insurance must include coverage for broad form property damage, blanket contractual
liability, advertising and personal injury liability, and products/completed operations. Supplier will also maintain Automobile Liability insurance with a combined single limit for Bodily Injury and Property Damage of not less than $[*] per
occurrence. Supplier may maintain a lesser limit of General Liability or Automobile Liability insurance if the policy, combined with Supplier’s Umbrella or Excess Liability policy, meets the respective minimum coverage limits for General
Liability and Automobile Liability insurance required under this Agreement. 
 14.2 Workers’ Compensation and Employer’s
Liability Insurance. If Supplier has employees or acquires employees during the term of this Agreement, then Supplier must maintain Workers’ Compensation insurance as required by statute; and Employer’s Liability insurance in not less
than the amounts that follow (or as otherwise required by applicable state law). The policy must permit (or be endorsed to permit) Supplier’s waiver of insurer’s subrogation rights against Seagate and Supplier agrees to waive its
subrogation rights. 
  

	

			
	(a) Bodily injury by accident		$[*] per accident
		
	(b) Policy limit by disease		$[*] policy limit
		
	(c) Bodily injury by disease		$[*] per employee

 14.3 Professional Liability Insurance. Supplier will maintain Professional Liability insurance,
including acts, errors and omissions arising out of the rendering of, or failure to render, professional services related to this Agreement with coverage limits of no less than $[*] per occurrence. 

14.4 Proof of Insurance and General Requirements. Supplier’s required insurance must (a) respond as primary coverage
concerning Supplier’s indemnity and insurance obligations under this Agreement and neither Seagate nor its insurers will be required to pay for any portion of such obligations; and (b) contain a standard cross liability endorsement or
severability of interest clause. Supplier must provide Seagate with proof of insurance satisfactory to Seagate. Supplier will immediately notify Seagate of any material change in its insurance. Supplier’s certificate of insurance must provide
that no cancellation of the insurance will be effective without ten days’ advance written notice to Seagate. In no event will any required insurance coverage or limits reduce Supplier’s obligations to Seagate under this Agreement. 

	15.	MISCELLANEOUS 

 15.1 Master Nondisclosure Agreement. The parties have
entered into a Master Nondisclosure Agreement number 75226, and supplements thereto, which will govern disclosures of information between the parties. 

15.2 Relationship of the Parties. Supplier and Seagate are independent contractors. 

15.3 No Intellectual Property Rights Granted. Except as expressly provided, this Agreement does not grant either party any right to the
other party’s patents, copyrights, trademarks, trade secrets, or other forms of intellectual property. 
 15.4 Assignment. Due
to the nature of each party’s duties and Seagate’s reliance on Supplier’s performance in supplying Products, Seagate may assign this Agreement to any third party upon written notice to Supplier, without requiring Supplier’s
consent. Supplier may assign this Agreement only with the prior written consent of Seagate. Provided, however, that the transfer of a controlling ownership interest in Supplier by way of merger, sale of capital stock or sale of all or substantially
all of the assets of the business unit responsible for the production and sale of the Products shall be permitted without the prior consent of Seagate. Supplier will give notice to Seagate of an impending transfer of controlling ownership as soon as
practicable and permissible under applicable law. This Agreement will be binding upon and will inure to the benefit of the parties and their permitted successors and assigns. 

15.5 Compliance with all Laws. Supplier, and all Products supplied by Supplier and work performed by Supplier, must comply with all
applicable laws and regulations in effect, including those governing environment, health and safety, and labor and employment practices. Supplier must require that its sub-suppliers also comply with all applicable laws and regulations in effect.
Upon request, Supplier will certify that it complies with all applicable laws and regulations. Seagate may audit Supplier to confirm Supplier’s compliance with this Section. 

15.6 Export Controls. Each party will comply with all applicable export, re-export and foreign policy controls and restrictions imposed
by the U.S. and the country in which they are located, including the U.S. Export Administration Regulations. Supplier may not export, re-export or allow to be disclosed, any technical data received from Seagate or the product of any technical data
to any person or destination to the extent prohibited by law. 
 15.7 English Language; Governing Law. English is the authoritative
text of this Agreement, and all communications and proceedings must be conducted in English. If this Agreement is translated, then the English language version will control. The laws of the State of California, USA govern this Agreement, without
regard to any conflicts of laws rules. The United Nations Convention on Contracts for International Sale of Goods does not apply to this Agreement. 

15.8 Force Majeure. Neither party will be liable to the other if its performance is delayed by circumstances beyond its reasonable
control. If a force majeure condition prevents Supplier’s performance for more than 60 days, then Seagate may terminate this Agreement or cancel any unfilled orders without liability owed to Supplier. 

15.9 Severability; Survival. The terms of this Agreement are severable. If any term is unenforceable for any reason, then that term
will be enforced to the fullest extent possible, and the Agreement will remaining in effect. All obligations that by their terms or nature survive termination of this Agreement will continue until fully performed. 

 15.10 Written Amendments; Electronic Business Transactions. This Agreement may be changed
only by written amendment signed by both parties. The parties may exchange electronic documents in lieu of printed purchase orders, order acknowledgments, or forecasts. Supplier will comply with Seagate’s designated system of exchanging
electronic documents and will bear its own costs to participate in the system. Neither party will contest the validity or enforceability of electronically transmitted purchase orders or order acknowledgments on the grounds that they fail to comply
with the Statute of Frauds or similar laws requiring that contracts be in writing (such as UCC Section 2-201 or any state-law equivalent). Neither party is prohibited from asserting that an electronic document is invalid for any reason that
would also invalidate a written document. 
 15.11 Entire Agreement; No Waiver; Notices. This Agreement and the documents referred to
in it are the entire agreement of the parties with respect to this subject matter, superseding all prior or contemporaneous agreements. No failure or delay in exercising any right will be considered a waiver of that right. All notices and other
communications must be delivered to the addresses designated on the first page of this Agreement. 

 EXHIBIT A 

PRODUCT AND PRICE LIST 
  

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

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

 EXHIBIT B 

CUSTOMS CLEARANCE DOCUMENTATION 

15.12 [*] 

 EXHIBIT C 

PRODUCT DESCRIPTION AND SPECIFICATIONS INCORPORATED BY REFERENCE 

 

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

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

 EXHIBIT D 

PRODUCT STEWARDSHIP REQUIREMENTS 

See Separate Document 

 Exhibit E 

Buffer Management & Liability 

[*] 
  

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

 [*] 
 [*] 

 

					
	 [*]
	 	 	  	 [*]

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

 EXHIBIT F 

QUALITY STANDARDS 

Commitment to Seagate’s Quality Requirements 
  

	1.	[*] 

 AMENDMENT NO. 1 

TO PRODUCT SUPPLY AGREEMENT 
 This
Amendment No. 1 (this “Amendment”) to Product Supply Agreement is entered into by Seagate Technology LLC (“Seagate”) and eASIC Corporation (“Contractor”). Seagate and Contractor previously entered into the Product
Supply Agreement identified as Seagate Agreement No. 80364 (the “Agreement”). 
  

									
	 Seagate:

 
 Seagate Technology LLC

Attention: Corporate Contracts Mail
 Stop: CPCA 03C16

10200 South De Anza Boulevard
 Cupertino, CA 95014
		     		
Contractor:
  

eASIC Corporation
 2585 Augustine Drive

Suite 100
 Sanata Clara, CA 95054

	 	 		 	 
	Authorized Signature		/s/ Bruce A. Sanders				Authorized Signature		/s/ Ronnie Vasishta
	Print Name:		Bruce A. Sanders				Print Name:		Ronnie Vasishta
	Title:		VP Global Material				Title:		President & CEO
	Date		06/02/2014				Date		05/30/2014
	     								
	Underlying Ref. No.:		80364						
	Amendment Ref. No.		151062						
	Amendment Effective Date:		May 23, 2014						

 The parties agree to amend the Agreement as follows: 
  

	1.	AMENDMENTS 

 1.1     12.1 Effective Date and Expiration Date.
This section is deleted in its entirety and replaced with the following: 
 This Agreement is effective on the Effective Date specified on
the signature page, and continues until terminated. 
 1.2     12.2 Renewal. This section is deleted in its
entirety. 
  

	2.	MISCELLANEOUS 

 2.1 Dispute Resolution. Seagate and Contractor shall resolve any
dispute relating to this Amendment in the same manner as set forth in the dispute resolutions provisions in the Agreement. The laws of the State of California, without regard to its conflicts of laws rules, govern this Amendment and any disputes
relating to this Amendment. 

  
  

			
	Page 1 of 2		 Amendment Ref. No. 151062

Underlying Agreement Ref. No. 80364

 2.2 Entire Agreement; Incorporation. This Amendment is the entire agreement between
Seagate and Contractor regarding this subject matter. The terms of this Amendment are incorporated into the Agreement. 
 2.3
Authorization; Notices. Each person signing this Amendment represents that he or she is authorized to sign on behalf of his or her company. All notices given related to this Amendment must be sent to addresses specified above, or any other
addresses the parties designate in writing. 

  
  

			
	Page 2 of 2		 Amendment Ref. No. 151062

Underlying Agreement Ref. No. 80364

					
	

		 2585 Augustine Drive, Suite 100

Santa Clara, CA 95054

Phone: (408) 855-9200
 Fax:
(408) 855-9201
 www.easic.com
		

 Ms. Tara. L. Long 
 Vice
President of Strategy and Corporate Development 
 Seagate Technology LLC 

10200 De Anza Blvd 
 Cupertino, CA 95014 

Re: Letter from Counsel Asserting Rights to Indemnification 

Dear Tara, 
 As you know, eASIC (the
“Company”) received a letter from McDermott Will and Emery LLP, counsel to Seagate Technology LLC (“Seagate”), on November 10, 2014, which, among other things, asserted Seagate’s rights to indemnification and defense
costs in connection with a patent suit against Seagate, which letter is attached hereto (the “Rights Assertion Letter”). Specifically, the Rights Assertion Letter asserted Seagate’s rights to indemnification and defense costs in
connection with a suit, Case No. 3:13-cv-2946-H-BGS (S.D. Cal), against Seagate by plaintiff e.Digital Corporation alleging that certain Seagate SSD and SSHD products infringe claim 1 of U.S Patent No. 5,839,108 (the “Lawsuit”).
Seagate contends that the Company provided the flash controller for the Seagate products alleged to have infringed the e.Digital Corporation patent, and Seagate asserts its rights to indemnification and defense costs pursuant to paragraph 10.2 of
the Product Supply Agreement (No. 80364) dated June 28, 2010 and Amendment No. 1 to the Product Supply Agreement (No. 151062) dated May 23, 2010 (collectively, the “PSA”). 

You and I have spoken, and understand that Seagate has determined, that it will agree to limit the amount of indemnifications and defense
costs to be capped at a maximum, not to exceed $200,000. The actual amount maybe less based on actual costs incurred by Seagate. I understand that, as to the Lawsuit, Seagate is willing to waive its rights to seek indemnification and defense
costs in excess of $200,000 from the Company pursuant to the PSA (the “Waiver”). I understand that this is a specific limitation, applicable only with respect to the Lawsuit, and that Seagate does not waive or limit its rights to not seek
indemnification and defense costs from the Company with respect to any other patent infringement lawsuits brought against Seagate for products which incorporate the Company’s products. 

I also confirm that the Company does not object to Seagate’s producing, in response to plaintiff’s discovery request, the PSA and
technical documents sufficient to show the design and operation of the flash controller, as long as produced under a protective order in accordance with the description of such production as detailed in the Rights Assertion Letter. 

If this letter accurately reflects our understanding and agreement on the matters set forth herein, I would ask you or another authorized
person at Seagate to sign below evidencing our understanding and agreement on the matters set forth herein. 

 We appreciate our business partnership with Seagate and appreciate the effort you and your
company have made in assisting us on this issue. Thank you for your assistance in this matter. 
 Sincerely 

/s/ Ronnie Vasishta             

Ronnie Vasishta, 

Chief Executive Officer 

ACCEPTED AND AGREED: 
 This
letter accurately reflects our understanding and agreement on the matters set forth herein, including the Waiver. 
  

			
			Seagate Technology LLC
		
	  
		/s/ Tara Long
			(Authorized Person & Title)
		
			Tara Long
			VP Strategy & Corporate Development

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00241-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00241-of-00352.parquet"}]]