Document:

Production Purchase Agreement

 Exhibit 10.18 
 CONFIDENTIAL TREATMENT 
 PRODUCTION PURCHASE AGREEMENT 
  
 This Production Purchase Agreement (“the Agreement”) is
made and entered into by and between 3PARdata, Inc., a California corporation with principal offices at 4209 Technology Drive, Fremont, CA 94538 (“3PARdata”), and Xyratex Technology Limited a company organized under the laws of the United
Kingdom with principal offices at Langstone Road, Havant, Hampshire, P09 1SA, UK (“Seller”). The parties hereby agree as follows: 
 1.   Scope.  This Agreement shall apply to all purchase orders placed by 3PARdata and accepted by Seller during the Term (as defined below) for the Product(s) described
in Exhibit A attached hereto (“Product(s)”), as such Exhibit may be amended from time to time to add products upon the mutual agreement of the parties. 
 2.   Term.  The term of this Agreement shall commence upon execution hereof by both parties
(the “Effective Date”) and shall continue for two (2) years, (“Initial Term”), and thereafter this Agreement shall be automatically renewed for additional one (1) year periods (the “Extended Term”) unless
(i) 3PARdata gives written notice of termination at least sixty (60) days before the end of the Initial Term or any anniversary thereof or (ii) Seller gives written notice of termination at least nine (9) months before the end of
the Initial Term or any anniversary thereof or (iii) unless sooner terminated in accordance with the provisions hereof (collectively the “Extended Term”). “Term” shall mean the Initial Term and the Extended Term, if
applicable. 
 3.   Terms and Conditions.  This Agreement contains the terms and
conditions which apply to all purchases, notwithstanding any purchase order, acknowledgment or other business forms transmitted by Seller or 3PARdata. 
 4.   Prices. 
   (a) At the commencement of
each calendar quarter throughout the term of this Agreement, Seller shall provide 3PARdata with rolling “not to exceed” pricing [***]. Seller’s initial pricing is set forth in Exhibit B. 
   (b)  Seller’s actual pricing will be provided to 3PARdata at the commencement of each calendar quarter and
shall not exceed that communicated by Seller pursuant to 4(a) above. 
   (c)   Subject to
Section 4(a) above, Seller may increase pricing [***]. Orders placed by 3PARdata during the [***] period shall be subject to the pre-increase pricing, even if delivery is scheduled to take place after such [***] period. Price decreases may take
effect immediately and apply to existing undelivered orders. 
   (d) [***] 
  

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   (e)  Pricing effective as of the Effective Date of this Agreement are set forth in Exhibit B, as such
Exhibit may be amended from time to time. 
 5.   New Products.    The
parties agree that any new or modified product(s) will be priced based upon assumed volumes and complexity factors employed in the pricing model of that Product that most closely resembles the new or modified product(s) to be priced. At
3PARdata’s option, 3PARdata may substitute the new or modified product for outstanding orders of the existing Product(s), provided, however, 3PARdata will make all reasonable efforts to consume existing buffer inventories or open purchase
orders. 
 6.   Ex Works.  Product(s) shall be delivered Ex Works (Incoterms 2000)
Seller’s facility in Sacramento, California, whereupon title to the Products shall pass to 3PARdata. 
 7.   Invoices. 
   (a) Upon shipment of Product(s) ordered, Seller will submit to
3PARdata an invoice showing quantity of each Product and unit prices. 3PARdata shall pay each invoice [***] for those Products accepted by 3PAR pursuant to Section 10(c) below. The date of any invoice will not pre-date the date of delivery of
the Products. 
 8.   Ordering and Delivery. 
   (a) Seller shall provide 3PARdata with Products, on consignment, located at Seller’s Sacramento, California facility as
follows: 
 (i)     Seller will hold an incremental buffer stock of components and other materials
[***]. 
 (ii)     Seller commits to [***] build forecasted products and any additional
FGI/Products from the component and material buffer stock referred to in Section 8(a)(i) above. 
 (iii)     Buffer Stock: [***], Seller shall treat all 3PARdata forecasts as being uncommitted and non binding and will not hold 3PARdata liable or responsible for any unordered Products held on consignment (i.e.
unconsumed inventory) [***]. The process of managing the level, consumption and liability of such buffer stocks shall be reviewed and mutually revised and agreed to [***]. 
   (b) 3PARdata shall provide Seller with a three (3) month rolling committed forecast and an additional three (3) month uncommitted forecast. 
   (c) 3PARdata shall provide Seller with monthly purchase orders for the following three (3) months. At the beginning of each
quarter, 3PARdata shall provide Seller with a Quarterly forecast by email. At the end of each calendar month 3PARdata shall issue a PO to cover the following 3rd month. 3PARdata shall have complete ordering flexibility beyond such three (3) months.

  

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   (d) 3PARdata shall use its standard purchase order form and shall specify the Product in question, quantity of
Product desired, the locations to which the Product is to be delivered, and the date or dates desired for delivery of the ordered Product to such locations. 
   (e) Provided the Products so ordered are within 3PARdata’s committed forecast and within the amounts and lead-times provided for in Section (a), Seller shall deliver such
Products [***] after 3PARdata’s order if sent by email (“Agreed Delivery Date”). If 3PARdata requires Products for Customer specific orders, 3PARdata shall provide Seller with a “Release Order” by fax or email indicating all
required material, ship to information, ship method, etc. If the Products ordered fall outside the parameters of the first sentence of this Section, then Seller shall propose alternative delivery date(s). If accepted by 3PARdata, the alternative
delivery date(s) shall become Agreed Delivery Date(s). Seller shall notify 3PARdata within twenty-four (24) hours if it cannot meet any Agreed Delivery Date. 
   (f)  3PAR may make changes to the method of shipment and/or plan of delivery by giving forty-eight (48) hours prior notice. 3PAR may make changes to the packaging upon four
to six (4–6) weeks notice. Such changes may result in an adjustment to the price and/or delivery schedule. Supplier will provide 3PAR, in writing, any such adjustments within fifteen (15) days of receiving the change request from
3PAR. 
   (g)  Seller agrees to populate empty drive magazines with disk drives. 3PARdata shall provide empty
disk drive magazines and packaging to Seller, whereupon Seller shall deliver the populated drive magazines [***]. 3PARdata shall provide Seller with a monthly PO. Pricing shall be as set forth in Exhibit B (a) (ii) (2). 
 9.   Allocated Material.  In the event that any material is in such short supply such that
Seller is unable to fill its other customers’ and 3PARdata’s orders for Product(s) in full (“Scarce Material”), at a minimum Seller agrees to allocate Scarce Material to 3PARdata and to utilize any materials in short supply to
make Product(s) under whichever of the following formulas would allocate to 3PARdata the greatest amount of Scarce Material: 
   (a) In the proportion of 3PARdata’s orders for Product(s) containing such Scarce Material to all of Seller’s customers’ orders for product containing such Scare Material for the month in question; 
   (b) In the proportion of 3PARdata’s forecast for Product(s) containing such Scarce Material to all of Seller’s
customers’ forecasts for products containing such Scare Material for the month in question; or 
 In the event Seller fails to meet
Agreed Delivery Dates, due to Scarce Materials or otherwise, [***] then Seller shall pay 3PARdata an amount [***]. 
  

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 10. Acceptance and Quality. 
   (a) 3PARdata may inspect the Products, materials and components held by Seller for 3PARdata at Seller’s facilities during Seller’s regular business hours provided Seller and
3PARdata have made advance arrangements for such visit. 3PARdata and its representatives shall observe all reasonable security and handling measures of Seller and shall be accompanied by a Seller representative at all times while on Seller’s
premises. 
   (b) Seller may not make parts substitutions or process changes without the prior written approval of
3PARdata. Seller shall direct all such requests for parts substitutions to 3PARdata’s Contract Administrator. 
   (c) Within seven (7) days of delivery, 3PARdata will inspect, and based upon the results of such inspection, reject or accept Products delivered hereunder in a reasonable period of time, not to exceed a further seven
(7) days. Acceptance or rejection shall be based on reasons of quality or function only. 3PARdata shall return Products in the original shipping container, if possible; otherwise 3PARdata shall use a similar shipping container. Seller shall be
responsible for 3PARdata’s actual, reasonable shipping costs. Seller shall replace such rejected Products within five (5) days of return. With respect to Product(s) to be replaced, the date determined in the prior sentence shall be deemed
an Agreed Delivery Date for purposes of this Agreement, subject to modification in accordance with Section 9 hereof. 
 11. End of Term Orders. Purchase orders placed by 3PARdata prior to the termination of this Agreement for which the Agreed Delivery Date(s) are after the termination of this Agreement shall continue to be
governed by the terms and conditions of the Agreement unless 3PARdata agrees otherwise. 
 12. 3PARdata
Furnished Property. 
   (a) In order for Seller to manufacture Product(s) under this Agreement, 3PARdata may
provide certain tools and other materials to Seller. In addition, [***] 3PARdata will provide on loan to Seller any new hardware platform and any information and updates related to its latest software to facilitate Seller’s interoperability
testing and support of 3PARdata. Such equipment will be placed in Seller’s interoperability laboratory and any information or other proprietary data provided with such equipment will be deemed 3PARdata Confidential Information. While on loan,
3PARdata shall be responsible for providing Seller with its most current versions of software and/or firmware. After such [***] period, Seller shall either purchase the equipment and license the software and/or firmware, at a price to be mutually
agreed, or return the same to 3PARdata. 
   (b) All tools or other materials furnished by 3PARdata for use in the
performance of this Agreement shall remain the property of 3PARdata. Such tools or materials shall be used only by Seller in the performance of this Agreement and in accordance with the requirements of this Agreement relating to such use, and shall
be returned to 3PARdata when requested or upon completion or termination of this Agreement. Seller agrees to exercise reasonable care in the safeguarding and preservation of all 3PARdata-furnished property and assumes all responsibility for

  

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loss, damage, or destruction while such property is within its possession or control. Upon termination of this Agreement, Seller shall promptly return all
3PARdata furnished property to 3PARdata. 
 13. Risk of Loss or Damage.   Seller shall
be responsible for any loss or damage to Product due to Seller’s failure to properly preserve, package, or handle the Product prior to delivery. Seller will also bear the risk of loss with respect to any Product(s) rejected by 3PARdata and
returned to Seller, except that 3PARdata will be responsible for any damage to rejected or unaccepted Product occasioned by the willful misconduct or negligence of its employees or those of its contract manufacturer acting within the scope of their
employment. 
 14. Import and Export Licenses.   Seller shall provide all information
under its control which is necessary or useful for 3PARdata to obtain any export or import licenses required for 3PARdata to ship or receive Product(s), including, but not limited to, U.S. customs certificates of delivery, affidavits of origin, and
U.S. Federal Communications Commissions identifier, if applicable. With respect to Product(s), each party shall comply with export laws enacted by its respective government, and the regulations thereunder. 
 15. New Processes or Products.   Seller agrees to keep 3PARdata informed and obtain 3PARdata’s
prior written approval of any new process(es) or improvements to existing process(es), component level improvements (including, but not limited to, new drive chassis, new software/firmware, new hard disk drives), and new product introductions.
Seller shall offer such improved and new products as additions to or as substitutes under the terms and conditions of this Agreement. Seller shall inform 3PARdata of such new processes, improvements or new products at every stage of development no
later than it provides such information to any of Seller’s other customers. Seller shall notify and, unless otherwise agreed between the parties, provide, free of charge, no less than 16 evaluation units of improved and new products to 3PARdata
sufficiently in advance of Seller’s planned initial shipment so as to allow 3PARdata reasonable opportunity to determine whether it would be interested in such products. Such evaluation units must be purchased or returned by 3PARdata within
ninety (90) days of delivery unless otherwise agreed to by Seller in writing. 
 16.
Qualification.   Seller shall use its commercially reasonable efforts to ensure that all Product(s) delivered hereunder meet 3PARdata’s Product specifications and that the highest levels workmanship are achieved and
maintained. Subject to Section 18 below, Seller shall provide 3PARdata with qualification data, life test data and reliability modeling data. 
 17. Component Sales and Support 
   (a)        In the event Seller receives terms from its disk suppliers that are more favorable than the terms 3PARdata receives directly from its disk suppliers, then Seller agrees to allow
3PARdata to benefit from its more favorable terms by agreeing to enter into a master purchase agreement for the sale of such disk drives to 3PARdata. 
   (b)        The parties have agreed that Seller will provide drives to 3PARdata at the 

  

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negotiated rates. Also, Seller shall provide 3PAR with the following options for the qualification, purchase and installation of disk drives: 
 (i) Seller qualifies the disk drive and Seller procures the disk drive for installation in Seller Products. 
 (ii) Seller qualifies the disk drives and procures the disk drives on 3PARdata’s behalf based on 3PARdata’s terms with its
disk drive supplier (where 3PARdata or its contract manufacturer has more favorable terms than those offered to Seller) Seller, 3PARdata or its contact manufacturer may install and test the disk drives at 3PARdata’s request. 
 (iii) Seller qualifies the disk drives and 3PARdata or its contract manufacturer procures the disk drive based upon 3PARdata’s
terms with its disk drive supplier. Seller, 3PARdata or its contact manufacturer may install and test the disk drives at 3PARdata’s request. 
 (iv) Seller shall allow for and provide warranty for its products under the above cases. 
 (v) 3PARdata shall buy disk drives for both the Seller drive chassis as well as for the LBOD and KBOD. (vi) At 3PARdata’s request, Seller shall procure drives for the SBOD, KBOD and LBOD for 3PARdata. 
 (vii) Seller agrees to qualify 3PARdata specified SFP’s for use with SBOD. 
   (c)        Fibre Channel Nearline Support 
 (i) Seller shall support the 500GB, and any other future version of Seagate’s fibre channel nearline drives (“FCNL”) for
use within the Seller drive chassis Products. 
 (ii) Seller will support the capability to install and use mission-critical
fiber channel drives and FCNL drives within a single Seller drive chassis product. This requirement shall extend, at 3PARdata’s request, to other FCNL drives, including other FCNL versions from Seagate, Hitachi or other (mutually agreed) HDD
providers. 
   (d)        If Seller begins shipping and supporting
next-generation HDD’s in its products while 3PARdata continues to market and ship the previous generation HDD’s, Seller will continue to provide support to 3PARdata in its Products with the previous generation HDD’s providing supply
and forecast. 
   (e)        Software/Firmware Licensing: – Seller
shall provide 3PARdata with a non exclusive, perpetual, worldwide license to receive, install, copy, license, sub-license and distribute supported Seller custom firmware and any future updates from any component vendor (for drive chassis’ and
disk drives) for any component that 3PARdata or its contract manufacturer procures directly from Seller and/or the component vendor. 
 18. Confidential Information. 
  

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   (a) Each party acknowledges that information which the other party may disclose to it in a tangible form marked
“Confidential”, “Proprietary” (or with similar legend), or that is disclosed orally and expressed as being confidential at the time of disclosure or confirmed in writing as confidential within a reasonable time thereafter or
information which, by its nature, a reasonable person would consider to be confidential, comprises proprietary and confidential information of the disclosing party (“Confidential Information”). In addition, Confidential Information shall
include, without limitation all designs, engineering details, schematics, drawings, and specifications developed by a party, as well as other business, financial or technical information of the disclosing party. 
   (b) The receiving party agrees not to use Confidential Information or disclose, distribute or disseminate such Confidential
Information except as expressly permitted under this Agreement or as expressly agreed in writing by the disclosing party. The receiving party agrees to restrict access to such Confidential Information to those employees, contractors or consultants
of the receiving party who have agreed to be bound by a confidentiality obligation not less protective than that contained in this Agreement, and the receiving party will not use such materials at a location other than the address listed above
without the disclosing party’s prior written consent. The receiving party agrees to establish adequate internal safeguards and otherwise use reasonable care in restricting the use and dissemination of any Confidential Information in order to
protect against its unauthorized use or disclosure to any third party. The receiving party shall exercise the same degree of care to prevent unauthorized use or disclosure of the Confidential Information to others as it takes to preserve and
safeguard its own confidential information, but in any event, no less than a reasonable degree of care. 
   (c)
The receiving party shall be relieved of this obligation of confidentiality to the extent any information: 
 (i)     was in the public domain at the time it was disclosed or has become in the public domain through no fault of the receiving party; 
 (ii)     the receiving party can prove was known to it, without restriction, at the time of disclosure as shown by the files of the receiving party in existence at the time of
disclosure; 
 (iii)     is disclosed by the receiving party with the prior written approval of the
disclosing party; 
 (iv)     the receiving party can prove was independently developed by it without
any use of the Confidential Information; or 
 (v)     becomes known to the receiving party, without
restriction, from a source other than the disclosing party without breach of this Agreement by the receiving party and otherwise not in violation of the disclosing party’s rights. 
   (d) Each party acknowledges that breach of the confidentiality obligation may cause irreparable harm to the disclosing party,
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 Accordingly, each party agrees that the disclosing party may seek immediate injunctive relief in the event of breach of the confidentiality
obligation by the receiving party. 
   (e) After termination of this Agreement, the receiving party shall promptly
return all tangible materials containing such Confidential Information to the disclosing party. Concurrently with the return of such materials, the receiving party agrees to confirm in writing that all materials containing Confidential Information
have been returned to the disclosing party. 
 19. Intellectual Property Rights. 
   (a)   3PARdata retains for itself all proprietary and intellectual property rights including all patent rights in
the 3PARdata Confidential Information and all derivative works thereof and all improvements, modifications or enhancements thereto, and in and to all designs, engineering details, schematics, drawings, specifications and other similar data which are
provided by 3PARdata to Seller under this Agreement. 3PARdata shall have the sole right to file any patent applications thereon. In addition, 3PARdata shall receive a royalty free, non-exclusive, perpetual, irrevocable license to use any proprietary
and intellectual property rights made by Seller specifically for 3PARdata. 
   (b)     Seller
retains for itself all proprietary and intellectual property rights, including without limitation, the Seller Confidential Information, any improvements, modifications or enhancements thereto in the Products and any related documentation to the
extent any such right, improvement, modification or enhancement does not contain any 3PARdata Confidential Information, 3PARdata intellectual property rights or other 3PARdata proprietary rights, in which case such rights, improvements,
modifications or enhancements shall belong to 3PARdata. The parties agree that the use of Seller Products as incorporated into or combined with 3PARdata products shall not be deemed an improvement, modification or enhancement of the Products for
purposes of this Section 19. Subject to the above, nothing in this Agreement shall be construed as transferring any such rights to the 3PARdata or any other person. 
   (c)     In the event the parties agree that Seller will perform or create developments specifically for 3PARdata for which 3PARdata pays Seller a fee to develop,
the parties agree to meet and discuss ownership of such developments at such time. 
 20. 3PARdata-unique
Components and Customization. 
   (a) Seller will not ship Product which was developed by, in conjunction
with, or in accordance with specifications from 3PARdata, to any third party without the prior written consent of 3PARdata. 
   (b) At 3PARdata’s request, Seller will include 3PARdata custom firmware in the Product’s drive chassis. 
   (c) The Products’ drive magazines will meet 3PARdata’s applicable drawings, designs or specifications (including colors, logos, and rack fitting requirements). In addition, the Products’
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   (d) At 3PARdata’s request, Seller’s drive chassis’ will allow support for 3PARdata custom drive
firmware. 
 21. Inventions. 
   (a) All discoveries, improvements and inventions, whether or not patentable, conceived or first reduced to practice, as those terms are used before the U.S. Patent and Trademark
Office, in the performance of this Agreement by 3PARdata personnel shall be the sole and exclusive property of 3PARdata and 3PARdata shall retain any and all rights to file any patent applications thereon. 
   (b) Subject to the provisions of Section 22(a) all discoveries, improvements and inventions conceived or first reduced
to practice, as those terms are used before the U.S. Patent and Trademark Office, whether or not patentable, in the performance of this Agreement by Seller’s personnel shall be the sole and exclusive property of Seller and Seller shall retain
any and rights to file any patent applications thereon. 
   (c) Subject to the provisions of Section 22(a)
all discoveries, improvements and inventions conceived or first reduced to practice, as those terms are used before the U.S. Patent and Trademark Office, whether or not patentable, in the performance of this Agreement jointly by Seller personnel and
3PARdata personnel (the “Joint Inventions”), shall be the property jointly of Seller and 3PARdata, each party having an equal and undivided one-half (1/2) interest therein. Each party shall be entitled to use, exploit, transfer, and
grant licenses with respect to its interest in Joint Inventions without notice or accounting to the other party. 
 22. Seller’s Process Changes. 
   (a) Seller agrees that it will keep 3PARdata informed of
any changes in process, design or method of manufacturing that might affect form, fit, function or safety of the Product(s), including without limitation, changes in performance, maintenance procedures, interchangeability, interconnectability,
quality, reliability or manufacture compatibility of Product(s). Seller further agrees that it will not implement any change affecting Products supplied to 3PARdata without 3PARdata’s prior written approval. 
   (b) Any contemplated changes in process or method of manufacturing will be submitted to 3PARdata [***] in advance of any
roll. If 3PARdata cannot approve the roll within such period, Seller will not implement the roll to 3PARdata’s Products until 3PARdata has completed its testing and agrees to the roll. 
   (c) In the event there is a hardware change to the form, fit or function of the Products, Seller shall provide 3PARdata on
loan [***] evaluation units of the changed parts when existing Products are improved or replaced with new Products. If 3PARdata wishes to keep any of the evaluation Products, Seller agrees to sell such evaluation Products to 3PARdata for a
discounted price to be negotiated on a case-by-case basis. Seller’s agreement to sell evaluation Products at a discount applies only to SBOD’s, not disk drives 
  

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and 3PARdata agrees to use any such purchased evaluation Products for testing and/or use in 3PARdata’s lab and not for FRU’s or commercial end
customer use. 
   (d) Seller agrees to sell to 3PARdata all future Seller generic OEM products (e.g. new drive
chassis, new software/firmware, new hard disk drives), as early as all other Seller customers at every stage of the product lifecycle (including design, prototypes, engineering samples, engineering qualification units, and manufacturing/GA units of
hardware products or alpha, beta, and GA release of software/firmware) unless Seller is bound under some specific licensing agreement to provide early releases to such licensee. 
 23. Process Discontinuance. 
   (a) Seller may discontinue its manufacture of a Product upon six (6) months prior written notice thereof to 3PARdata (“EOL Date”), so long as Seller does not offer such
Product to any other of its customers after it stops offering such Product to 3PARdata. [***] prior to the EOL Date, 3PARdata may place and Seller shall accept any orders for delivery [***] following the EOL Date with respect to any Product so
affected. Any such orders placed for the last three month period of this [***] period shall be non-cancelable by 3PARdata. 
   (b) In addition to the above, in the event Seller discontinues the manufacture of a Product and 3PARdata still has a requirement for such Products, then Seller shall provide 3PARdata or its contract manufacturer with, or access
to, the tooling, components, code, design specifications, manufacturing rights and any other elements to allow 3PARdata or its contract manufacturer to takeover the manufacture and distribution (as contemplated by this Agreement) of the Products
that are currently being, or the parties were planning to be, delivered under this Agreement. Seller’s fees associated with this shall be negotiated on a case-by-case basis between the parties. 
   (c) Seller agrees to provide 3PARdata with technical support after the EOL Date until the expiry of the original warranty
period for any Product delivered to 3PARdata unless 3PARdata and Seller otherwise agree in writing. Seller shall allow 3PARdata to continue to purchase Seller drive carriers for installation on Products that have reached their EOL Date for the
duration of the original warranty period or [***] after the EOL Date, whichever is more favorable to 3PARdata and provided 3PARdata has provided Seller with a forecast at the EOL Date. Prior to the end of the warranty period or [***] after EOL,
3PARdata can make a last time purchase of the drive carriers. 
   (d) Seller will make reasonable efforts to
support Products for a period of five (5) years after EOL. Warranty support shall be three (3) years after EOL or the remaining term of the warranty period. Level 3 technical support shall be provided beyond the original warranty period
provided Seller retains staff knowledgeable on the Product in question. 
   (e) Seller shall make available on a
quarterly basis written [***] roadmap communications highlighting new and proposed EOL Products. 3PARdata will provide Seller with its non-binding forecasts once notified of a Product EOL 
  

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   (f) For EOL drive chassis, new drives will continue to be qualified [***] (unless mutually agreed otherwise)
for upgrade sales and to allow 3PARdata to continue to sell its inventory EOL Products. The disk qualification will be completed either by Seller or by 3PARdata (assuming Seller’s SBOD Product warranty is still in effect). Specific
qualifications and qualification ownership will be agreed in advance of finalizing the EOL plan [***] 
 24.
Safety Standards and Legal Compliance. 
   (a) Seller shall provide 3PARdata with copies of the
certifications for existing Products within two (2) weeks of execution of this Agreement and for new products to be purchased by 3PARdata under this Agreement, within two (2) weeks of certification, or at least three (3) months before
general availability of such products. Such certifications shall include those certifications listed in Appendix D (collectively the “Certifications”). 3PARdata may share such Certifications with its VAR’s, OEMs or resellers, domestic
or international. 
   (b) Seller will promptly notify 3PARdata with respect to any matter to which Seller receives
or develops knowledge with respect to the safe and/or reliable operation of the Product(s). 
   (c) Seller shall
provide 3PARdata with a summary of its ROHS and WEEE compliance program and milestones. 
 25.
Insurance. 
 During the Term of this Agreement, Seller, at its sole cost and expense, shall carry and maintain all risk property
insurance with sufficient limits to cover the replacement cost of all 3PARdata’s consigned equipment, components, raw material and work in process, and selling price for all 3PARdata’s finished goods. 
 26. Warranty. 
   (a) Seller warrants that for a period of three (3) years from the date of delivery to 3PARdata, all Product(s), including all components thereof: (i) are new and unused (or used only to the
extent necessary for testing as contemplated by this Agreement), will be free from defects in workmanship and manufacture; (ii) will conform to the product and test specifications incorporated by reference in Exhibit A; and (iii) neither
contain, nor are they manufactured using, ozone depleting substances. Notwithstanding the foregoing, (i) disk drives shall be warranted for the duration of the manufacturers warranty and (ii) a drive chassis purchased from Seller without
disk drives (i.e. 16-bay SBOD or its successor) shall only receive a warranty of one (1) year. All other terms of the disk drive warranty and 16-bay SBOD (or its successor) warranty shall be the same as above. Pricing for second and third year
warranty for the 16-bay SBOD (or its successor) and fourth and five year warranty on all Products (including 16-bay SBOD or its successor) shall be as set forth in Exhibit C. SELLER MAKES NO OTHER REPRESENTATIONS OR WARRANTIES, EXPRESS OR IMPLIED
WITH RESPECT TO PRODUCT(S), AND EXPRESSLY DISCLAIMS ANY IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE OR NONINFRINGEMENT. NEITHER SELLER NOR ANY OF ITS SUPPLIERS WARRANT THAT 
  

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ANY PRODUCT, SOFTWARE OR PART THEREOF WILL MEET 3PARDATA’S REQUIREMENTS OR BESECURE OR ERROR-FREE. THIS SECTION 18 STATES SELLER’S ENTIRE LIABILITY
AND 3PARDATA’S SOLE AND EXCLUSIVE REMEDIES FOR BREACH OF WARRANTY. 3PARdata’s approval of Seller’s materials will not relieve Seller of any warranties. 
   (b) Subject to Sections 26 (c) and (g) below, defective or non-conforming Product(s) shall be returned to Seller upon 3PARdata’s receipt of a RMA for such return.
Seller shall issue RMA numbers within two (2) business days of 3PARdata’s request. 3PARdata shall return Products in the original shipping container, if possible, otherwise 3PARdata shall use a similar shipping container and such container
shall be marked with the RMA number. Seller shall replace such rejected Products within ten (10) business days of receipt of the RMA. This date shall be deemed an Agreed Delivery Date for purposes of this Agreement. Seller shall provide a
failure analysis report (FA-1) to 3PARdata on non-conforming Product(s) within ten (10) business days return to Seller. A full root cause failure analysis shall be made available to 3PARdata, upon request, within thirty (30) days.

   (c)        Product(s) which fail to meet the warranty set forth above
within thirty-seven (37) days of delivery to 3PARdata’s customer shall be considered early life failures (“ELF”). Seller shall provide advance replacement Product (which shall be new and unused) within twenty-four to forty-eight
(24-48) hours, of notification of an ELF by 3PARdata to Seller. This date shall be deemed an Agreed Delivery Date for purposes of this Agreement. 3PARdata shall return the ELF Product to Seller using the RMA process set forth in Section 26(b)
above within fourteen (14) days after receipt of an RMA from Seller. 
   (e)        Any repaired or replaced Product(s) shall assume the same (coterminous) warranty set forth above for the replaced Product. Product that fails after the warranty period has
expired shall be repaired or replaced within twenty-one (21) days after the failed Product has been returned to Seller. Products repaired after the original warranty period shall be subject to a new one (1) year warranty period. Out of
warranty service shall be provided at Seller’s standard terms, conditions, and rates. 
   (f) Subject to
3PARdata’s rights with respect to Sections 26(c) and (g) hereof, such repair or replacement shall be 3PARdata’s exclusive remedy and Seller’s sole liability for any breach of the warranty set forth in this Section 26.

   (g) Seller shall be obligated to repair or replace all (or any portion, if agreed with 3PARdata) of a series
of Products (for example, a range of serial numbers) that suffer from an “Epidemic Failure” during the warranty period. Epidemic Failures for a series of Products or their components shall be deemed to have occurred if the Products and/or
their components suffer from the Epidemic Failure Rates set forth in Exhibit E. [***] If Seller determines that the recalled or field retrofit Product is repairable or upgradeable, Seller shall provide 3PARdata with a 
  

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 CONFIDENTIAL TREATMENT 
  

 
seed stock as needed for all customer sites affected as soon as reasonably possible, but no more than a three month period from consensus between the parties
that an Epidemic Failure exists pursuant to Exhibit E. 3PARdata will return defective parts to be repaired. Such repair will be cycled within a mutually agreed upon time. If Seller determines that the recalled Product or Product that is proposed for
field retrofit is not repairable, Seller shall replace such Products with new Products as soon as reasonably possible. [***]. 
   (h) Limitation of Liability for Epidemic Failure. In no event shall Seller’s total liability for reimbursement of the remediation expenses set forth in Section 26 (g) above for each unit of the Product affected by
a particular Epidemic Failure, exceed [***]. 
   (i) Software and Firmware Support. Any software and/or firmware
incorporated in the Product (including HDD firmware, embedded switch firmware, SBOD firmware, SBOD management software) shall be supported by Seller for a period [***]. 
   (j) 3PARdata shall be provided with access to all outstanding bugs related to the 3PARdata’s purchase of Products pursuant to this Agreement. A ticket system will be in place to
track and close open issues. 
   (k) Escalation support - Seller shall provide a procedure for the escalation of
Product design defects and problem resolution for Products under warranty or that Seller has otherwise agreed to support. 3PARdata will be provided with access to Seller’s database of known problems, knowledge base or access to on-line
information related to the Products. Seller will provide 3PARdata with Product and service documentation along with training materials if available. 
 The escalation procedures should include electronic or phone depending on the defined severities. 
 All
level 1 and level 2 support issues will be addressed by 3PARdata. 
 3PARdata level 1 and level 2 teams will have direct contact with the
Seller’s level 3 support team during normal business hours. This team “follows the sun” – California, Asia, UK. Callback is within 1 hour; weekend is best efforts. 
 Seller’s email and 800 numbers will log requests 24/7. 
 Contacts: Seller’s
pre- and post-production contacts shall be provided to 3PARdata separately 
 Each party’s level 2 and level 3 support responsibilities
shall be agreed and documented once 3PARdata’s Engineering Department has completed its initial testing of the Product. 
  

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 CONFIDENTIAL TREATMENT 
  

   (l) Consigned Field Replacement Units (FRU). 3PARdata will be responsible for purchasing FRU units for stocking
in 3PARdata depots. Seller will provide 3PARdata with a FRU price list for depot stocking [***]. Seller will offer 3PARdata with a discount on FRU’s purchased for its initial depot stocking [***]. 
   (m) If the repair or replacement of a Product is not reasonably feasible, then the purchase price paid by 3PARdata for such
Product shall be credited or refunded. Credits shall only be applied if there are outstanding orders. 
   (n)
Secure Site Returns. For Products located at restricted facilities that do not perform as warranted. Seller will replace or offer a credit for [***] in-warranty Products per quarter, via a “Certificate of Destruction”. Anything more [***]
shall be handled via the return of both the Top Cover and PCBA. 3PARdata shall request the option to return via either the COD method or Top Cover and PCBA method. Restricted areas are defined, as government or quasi government sites in which
in-warranty Products cannot be returned in whole for repair or replacement. If a situation occurs that falls outside of this provision, both parties shall reach mutual agreement on its resolution which may include service charges or other costs
necessary to support such a resolution. 
 27. Cancellation for Seller’s Default. 
   (a) 3PARdata may, at any time prior to delivery, by written notice, cancel this Agreement in whole or in part, or any
purchase order issued hereunder if, in 3PARdata’s good faith opinion, Seller has: 
 (i)     becomes bankrupt or insolvent, suffers a receiver to be appointed or makes an assignment for the benefit of creditors; or 
 (ii)     is otherwise in material default of any obligations under this Agreement and such default is not cured within thirty (30) days of 3PARdata’s notice of
such default. 
   (b) If all or a portion of this Agreement or any purchase order is canceled for Seller’s
default, 3PARdata may, in addition to all other remedies that may be available to 3PARdata, require Seller to transfer title and to deliver to 3PARdata, in the manner and to the extent directed by 3PARdata, provided that 3PARdata pays for such
property pursuant to this Section 27(e), below: 
 (i)     any completed items not yet
delivered; and/or 
 (ii)     any partially completed items and materials that Seller has produced
or acquired for the performance of the terminated portion. 
   (c) 3PARdata will pay Seller the following amounts
for property for which title has been transferred and delivery completed under Section 27(c) above: 
 (i)     the contract price for any completed Product(s) in accordance with this Agreement; or 
  

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 CONFIDENTIAL TREATMENT 
  

 (ii)   the actual costs incurred by Seller which are properly allocable under recognized commercial accounting
practices to the terminated portion of this Agreement, plus a fair and reasonable profit on such costs (as reasonably agreed to by the parties) with respect to partially completed Product(s) and materials that Seller has produced or acquired for the
performance of the terminated portion of this Agreement. With respect to work in progress, if it appears that Seller would have sustained a loss on the order, no profit will be allowed, and an adjustment will be made reducing the amount of the
settlement to reflect the indicated rate of loss. 
   (d) Payments made under this Section 27 may not exceed
the aggregate price specified in this Agreement or purchase order(s) under this Agreement less payments otherwise made or to be made. Any amounts payable for property lost, damaged, stolen or destroyed prior to delivery to 3PARdata will be excluded
from amounts otherwise payable to Seller under this Section 27. 
   (e) Both parties agree to negotiate in good
faith the settlement of any dispute that may arise under this Agreement. Pending settlement of any dispute, Seller agrees to continue to fabricate and deliver Product(s) under the terms of this Agreement as directed by 3PARdata. 
   (f) If 3PARdata terminates this Agreement pursuant to Section 27 (a)(i) above then Seller will provide 3PARdata with
access to its tooling, components, code, and manufacturing rights to allow 3PARdata or its contract manufacturer the right to continue to manufacture and sell the Products as contemplated by this Agreement. 3PARdata shall pay Seller a royalty [***]
for each unit of the Product it manufactures and sells resulting from the rights granted in this Section 27(f). The access and use rights granted in this Section 27(f) shall only be effective until Seller is no longer deemed to be bankrupt
or insolvent under the laws of the applicable jurisdiction 
 28. Termination by Seller. 

Seller may terminate this Agreement: 
 (i)     immediately if 3PARdata becomes bankrupt or insolvent, suffers a receiver to be appointed or makes an assignment for the benefit of creditors; or 
 (ii)     within thirty (30) business days, if 3PARdata fails in performance of any material obligation
under this Agreement and Seller has provided 3PARdata with notice of such failure to perform such material obligation, provided, that 3PARdata has not cured, or taken action that with the passage of time shall cure, such failure prior to the lapse
of such thirty (30) business day period. 
 29. Indemnity. 
   (a)    General Indemnification. 
 (i)     Each party will defend the other party and the other party’s personnel against third party claims that allege personal injury or damage to real or tangible
property caused by a party’s intentional or willful misconduct or negligence and such party shall pay all damages, costs 
  

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 CONFIDENTIAL TREATMENT 
  

 
and attorneys fees awarded against the aggrieved party, or that are part of a settlement agreed to by the indemnifying party in its discretion. 

(ii)      The indemnifying party’s obligations under this Section 29(a) shall be contingent on the
damaged party: (x) notifying the indemnifying party promptly in writing of any claims; (y) giving the indemnifying party sole control of such defenses and settlement negotiations; and (z) giving the indemnifying party proper and full
information and assistance to settle and/or defend any such claim. Failure by the damaged party to notify the indemnifying party promptly in writing of such claim will relieve the indemnifying party of its obligations under this Section only to the
extent that the indemnifying party’s ability to defend the claim is prejudiced by such lack of notice. 
   (b) Patent and Copyright Indemnification. 
 (i)      Subject to the
limitations set forth in this Section 29, Seller shall defend, or at its option, settle any claim or action against 3PARdata and hold 3PARdata harmless from any and all liabilities, damages, expenses, settlements and costs (including reasonable
attorneys fees) incurred or awarded by or against 3PARdata, arising from or occurring as a result of any third party claim or action alleging that the Product(s) infringe any patent or copyright or other intellectual property right in the United
States, the European Union, Japan, Korea, Singapore, Hong Kong or Australia. 
 (ii)    Procedure:
Seller’s obligation to indemnify 3PARdata under this Section 36 shall be subject to 3PARdata: (i) promptly notifying Seller in writing within 10 days of first learning of the claim or action giving rise to the indemnity;
(ii) providing Seller with sole and exclusive control over the defense and/or settlement of such action or claim; and (iii) providing Seller with proper and full information and reasonable assistance to defend and/or settle any such claim
or action. 
 (iii)      Exceptions: Seller will have no liability under this Section 29 and
3PARdata will defend, or settle any claim or action and hold Seller harmless from any and all liabilities, damages, expenses, settlements and costs (including reasonable attorneys fees) incurred or awarded by or against Seller for any claim or
action where such claim or action results from: (x) modification of the Product(s) unless such modification was made or authorized by Seller; (y) compliance with 3PARdata’s designs, specifications or instructions; or
(z) 3PARdata’s use of the Products in any manner inconsistent with the terms of this Agreement or any document provided by Seller. Notwithstanding anything to the contrary, Seller shall not be liable for any claim based on 3PARdata’s
use of the Product(s) after Seller has informed 3PARdata of modifications of the Product(s) required to avoid such claims and offered to implement those modifications, if such claim would have been avoided by implementation of Seller’s
suggestions. 
 (iv)      Infringement Remedies: If the Product(s) become or are likely to become
the subject of an infringement claim or action, Seller may at its sole option: (x) procure, at no cost to 3PARdata, the right to continue using the Product(s); (y) replace or modify the Product(s) to render them non-infringing; or
(z) if, in Seller’s reasonable opinion, neither (x) nor (y) above are commercially feasible, immediately terminate Seller’s obligations under this Agreement with regard 

  

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 CONFIDENTIAL TREATMENT 
  

 
to such Product(s), and, if 3PARdata returns such Product(s) to Seller, refund to 3PARdata the price originally paid, less reasonable depreciation, by
3PARdata to Seller for such Product(s). 
 (v)      THE FOREGOING STATES THE ENTIRE LIABILITY AND
OBLIGATIONS OF SELLER AND THE EXCLUSIVE REMEDY OF 3PARDATA WITH RESPECT TO ANY ALLEGED OR ACTUAL INFRINGEMENT OF PATENTS, COPYRIGHTS, AND OTHER INTELLECTUAL PROPERTY RIGHTS BY THE PRODUCT(S). 
 30.      LIMITATION OF LIABILITY. WITH THE EXCEPTION OF LOSS OR LIABILITY ARISING OUT OF A BREACH OF
SECTION 19 (CONFIDENTIAL INFORMATION), SECTION 20 (INTELLECTUAL PROPERTY RIGHTS) OR SECTION 29 (INDEMNITY), IN NO EVENT WILL EITHER 3PARDATA OR SELLER BE LIABLE FOR ANY SPECIAL, INCIDENTAL, OR CONSEQUENTIAL DAMAGES ARISING OUT OF THIS AGREEMENT,
WHETHER UNDER THEORY OF CONTRACT, TORT (INCLUDING NEGLIGENCE), PRODUCT LIABILITY OR OTHERWISE, EVEN IF ADVISED OF THE POSSIBILITY OF SUCH DAMAGES AND EVEN IF SUCH DAMAGES COULD HAVE BEEN REASONABLY FORESEEN. WITH THE EXCEPTION OF LOSS OR LIABILITY
ARISING OUT OF A BREACH OF SECTION 19 (CONFIDENTIAL INFORMATION), SECTION 20 (INTELLECTUAL PROPERTY RIGHTS) OR SECTION 29 (INDEMNITY), IN NO EVENT SHALL A PARTY’S TOTAL AND AGGREGATE LIABILITY UNDER THIS AGREEMENT EXCEED [***]. 
 31. Force Majeure.   Neither party shall be liable for any delay or failure in performance hereunder
caused by acts of God or other causes beyond the parties’ control and without fault or negligence. In the event Seller fails to deliver Product due to such causes, 3PARdata may suspend this Agreement in whole or in part for the duration of the
delaying cause, and at 3PARdata’s option, buy the Product(s) or similar products elsewhere and deduct from any purchase order to Seller the quantity so purchased. Seller shall resume performance under this Agreement immediately after the
delaying cause ceases. In addition, if the force majeure event does not affect other Seller manufacturing locations capable of producing Products, then Seller shall manufacture the Products and make the same available to 3PARdata from such other
locations and use all reasonable efforts to meet the Agreed Delivery Dates. 
 32. Government
Contracts.   Seller will promptly notify 3PARdata if Seller becomes, or with the passage of time will become, ineligible to perform contracts or subcontracts under Federal Acquisition Regulations. 
 33. Survival.   Notwithstanding the termination or expiration of the Initial Term of this Agreement or
any Extended Term thereof, it is acknowledged and agreed that those rights and obligations which by their nature are intended to survive such expiration or earlier termination shall survive. All obligations to return information and materials shall
survive the termination of this Agreement. 
 34. Relationship of Parties. 
  

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 CONFIDENTIAL TREATMENT 
  

   (a) Neither party shall have, or shall represent that it has, any power, right or authority to bind the other
party, or to assume or create any obligation or responsibility, express or implied, on behalf of the other party or in the other party’s name. 
   (b) Nothing stated in this Agreement shall be construed as constituting Seller and 3PARdata as partners, joint venturers, or as creating the relationships of employer and employee, franchiser and
franchisee, master and servant, or principal and agent. 
 35. Publicity.   Neither 3PARdata
or Seller shall publicize or disclose the existence or terms and conditions of this Agreement, or any transactions hereunder, without the express, prior written consent of the other, except as may be required under the rules and regulations of the
United States Securities Exchange Commission. 
 36. Administration. 
   (a) 3PARdata and Seller shall each assign an individual to administer this Agreement throughout this term: 
 3PARdata’s Administrator shall be: 
 Raj Vrittamani 
 Director, Operations 
 4209 Technology Dr., Fremont, CA 94538 
 Tel: 510 668 9306 
 Seller’s Administrator shall be: 
 ___________________ 
 ___________________ 
 ___________________ 
   (b) Each party shall inform the Administrator of the other in writing of a change of Administrator or such
Administrator’s address or telephone number. 
   (c) Any notice required or permitted to be given under this
Agreement shall be given in writing and shall be addressed to 3PARdata or Seller, as the case may be, at the address set forth above or at such other address as may be given in writing and: (i) deposited, postage prepaid, certified mail, return
receipt requested, in the United States mail; (ii) transmitted by facsimile with a confirming copy immediately mailed thereafter; or (iii) delivered by a messenger or overnight delivery service. 
 37. General.   This Agreement and all of its referenced Exhibits and Appendices, which are incorporated
herein by reference as if set forth in full, together with all purchase orders, but not the preprinted terms and conditions thereof, constitute the entire agreement between the parties with respect to the subject matter hereof and supersede all
prior proposals, negotiations and communications, oral or written, between the parties with respect to the subject matter 

  

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 CONFIDENTIAL TREATMENT 
  

 
hereof. No deviation from these provisions shall be binding unless in writing and signed by an authorized representative of the party to be charged.

 Except as specifically set forth herein, all rights and remedies conferred under this Agreement or by any other instrument
or law shall be cumulative and may be exercised singularly or concurrently. Failure by either party to enforce any provision shall not be deemed a waiver of future enforcement of that or any other provision. In the event that any portion of this
Agreement shall be held to be unenforceable, the remaining portions of this Agreement shall remain in full force and effect and the parties shall negotiate substitute provisions for those provisions held to be unenforceable that most nearly effect
the parties intent in entering into this Agreement. 
 38. Governing Law.   This Agreement
shall be governed by and construed in accordance with the laws of the State of California, USA, except that body of law of California law concerning conflicts of law. The parties agree that the exclusive jurisdiction and venue of any action between
the parties arising out of this business relationship, including disputes that may arise following termination of this Agreement, shall be the Superior Court of California for the County of Santa Clara or the United States District Court for the
Northern District of California and each of the parties hereby submits itself to the exclusive jurisdiction and venue of such courts for purposes of such action. 
 39. Assignments. 
   (a) The rights, duties and obligations of Seller under this Agreement may not be subcontracted or assigned in whole or in part by operation of law or otherwise without the prior express written consent of
3PARdata, and any attempted assignment of any rights, duties or obligations hereunder without such consent shall be null and void. This Agreement shall be binding on the parties and their respective successors and permitted assigns. 
 Notwithstanding the above, in the event Seller’s business is acquired by a competitor to 3PARdata, then Seller shall, subject to Section 29
above, continue to sell Products to 3PARdata pursuant to the terms of this Agreement for a period of twelve (12) months from the date of such acquisition. Thereafter, Seller and/or its acquirer shall have a right to immediately terminate this
Agreement upon written notice to 3PARdata. The price of such Products shall not exceed the “not to exceed” pricing set forth in Section 4(a). 
   (b) 3PARdata shall not assign its rights duties and obligations under this Agreement without the prior written approval of Seller, which approval Seller shall not unreasonably
withhold, provided, however, that 3PARdata may assign this Agreement without the prior written approval of Seller to a person or entity into which 3PARdata has merged or which has otherwise succeeded to all or substantially all of its business and
assets, and which has assumed in writing or by operation of law its obligations under this Agreement. 
 Notwithstanding the above, in the
event 3PARdata enters into an OEM arrangement for the sale of its products, which incorporate the Products the subject of this Agreement, then Seller agrees to enter into a purchase agreement with such OEM for the sale and supply of Products to the
OEM. Provided 3PARdata can demonstrate that it was instrumental in causing the OEM to enter into a new 
  

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 CONFIDENTIAL TREATMENT 
  

 or enhanced business relationship with Seller as a result of its being an OEM of 3PARdata then, in the event any of the terms and
conditions negotiated between Seller and the OEM are more favorable that the terms and conditions contained in this Agreement, Seller agrees to provide 3PARdata with the option to amend this Agreement to allow 3PARdata to substitute any of the terms
and conditions of this Agreement with the more favorable terms and conditions negotiated with the OEM. 
 40.
Resale, Lease or Sublicense of Products.   Seller grants 3PARdata a worldwide, nonexclusive right and license to use, sell, distribute, resell, lease and, in the case of software, sublicense (“Sales”) any Seller products
and components including third party products or components included therein listed in Exhibit A and associated documentation supplied therewith. Such Sales may be made under 3PARdata’s logo and on 3PARdata’s sale and license forms or with
those logo’s and sale and licensing forms of its distributors and resellers. 3PARdata may remove any of Seller’s logos, trade names and the like on the Products and associated documentation. 
 41. Business Continuity Plan.   Within one month of execution of this Agreement, Seller shall provide
3PARdata with a copy of its business continuity plan in the event Seller suffers a catastrophe. Seller shall provide 3PARdata with any updates to such plan. 
 42. Harmful Code.   “Harmful Code” shall mean any computer code or programming instructions that are intentionally constructed with the ability to damage or otherwise
adversely affect computer programs, data files or hardware without the agreement or intent of the user, and includes instructions known as worms and viruses. Seller will take all reasonable efforts and measures to ensure that any code provided in
the Products shall not contain any Harmful Code. Seller will notify 3PARdata immediately of any suspected contamination, and take remedial action to remove any of the Harmful Code. 
 43. Quarterly business review. 3PARdata and Seller shall hold quarterly business review meetings to, among other
things, measure performance, review roadmaps, review technical incident status/failure analysis, and review Product end-of-life plans. 
 IN
WITNESS WHEREOF, the parties have caused this Agreement to executed by this duly authorized representatives. 
  

							
	 Accepted for 3PARdata
	    	 Accepted for Seller

		
	  
	    	  

				
	 By:
	  	 /s/ David Scott
	    	 By:
	 	 /s/ Todd Gresham

				
	 Name:
	  	 David Scott
	    	 Name:
	 	 Todd Gresham

				
	 Title:
	  	 President & CEO
	    	 Title:
	 	 Senior Vice President

				
	 Date:
	  	 January 31, 2006
	    	 Date:
	 	 January 31, 2006

  

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 CONFIDENTIAL TREATMENT 
  

 EXHIBIT A 
 List of Products 
 [***] 
  

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 [***] 
  

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 EXHIBIT B 
  
 Initial Pricing 
  
  
 [***] 
  

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 EXHIBIT C 
 16-Bay SBOD Warranty Pricing 
  
  
 [***] 
  

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 EXHIBIT D 
 List of Certifications 
 Minimum Safety & other Regulatory Marks 
 UL, UL-C, 
 CSA 
 TUV 
 CE mark 
 VCCI-A 
 Part 15, FCC 
 Minimum Quality Certification 
 ISO 9001

 ** TL9000 ** optional 
 Environmental Certifications by Product: 
 WEEE Mark 
 RoHS CoC (Certification of Compliance of 6/6) and MCDS (material content data sheet) 
 or 
 RoHS CoE (Certification of Exemption/Exception 4/6, 5/6) and MCDS (material content data sheet) 
 or 
 MCDS, if CoC or CoE is not available, yet. 
 Note: MCDS is needed for JIG A & JIG B compliance verification and for ROHS verification (especially for the UK) and for CA, USA hazardous material
verification guidelines. 
  

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 EXHIBIT E 
 EPIDEMIC FAILURES 
  
 [***] 
  

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 -26-Manufacturing and Purchase Agreement

 Exhibit 10.19 
 CONFIDENTIAL TREATMENT 
 MANUFACTURING AND PURCHASE AGREEMENT 
 This Manufacturing and Purchase Agreement (the “Agreement”) is made as of this 5th day of Sept. 2003 (the “Effective Date”), by and
between Flash Electronics, Inc., a California corporation (hereafter the “Seller”) located at 4050 Starboard drive, Fremont, CA 94538, and 3PARdata, Inc (hereafter the “Buyer”) located at 4209 Technology Drive, Fremont, CA 94538.

 In consideration of the mutual covenants and representations herein set forth, the Seller and the Buyer agree as follows: 
  

	 1.
	 AGREEMENT TO MANUFACTURE 

 During the term of this Agreement and subject to the terms and conditions herein, the Seller will provide custom manufacturing services to the Buyer. These services include, but are not limited to, subassemblies and
components, material management, assembly of printed circuit boards (the “Products”), final electronic equipment testing, troubleshooting, and rework for the Products. Buyer sells Products on a worldwide basis. 
  

	 2.
	 PURCHASE OF PRODUCTS 

 2.1 Buyer’s Responsibility: The Buyer agrees to be liable or the costs of the materials and agreed upon materials mark-up [***] associated with materials purchases agreed in this purchase agreement.
Details of the amount of inventory may be defined on the purchase order or other written agreement by both parties. 
 2.2
Seller’s Responsibility. The Seller agrees to purchase materials based on Buyer’s policy and instruction, using approved vendors at the most favorable prices available. The Seller further agrees to purchase materials in a reasonable
quantity to protect lead-time requirements and volume discounts if available and necessary. 
  

	 3.
	 TERM AND TERMINATION. 

 The term of this Agreement shall commence upon the Effective Date and continue for 12 full calendar months. Thereafter, the Agreement shall automatically renew for successive 12-month periods unless either party gives
90 days’ written notice prior to the anniversary date of its intent to terminate the Agreement. This Agreement may be amended from time to time by written agreement signed by both parties. Notwithstanding the foregoing and subject to the terms
and conditions herein, this Agreement may be terminated (i) by either Buyer or Seller for any reason on 90 days prior written notice to the other party; or (ii) upon written notice to the other party at any time any one of the following
events occur (a) the other files a voluntary petition in bankruptcy; (b) the other is adjudicated bankrupt; (c) the other makes an assignment for the benefit of its creditors; (d) a court assumes jurisdiction of the assets of the
other under any bankruptcy or reorganization act; (e) a trustee or receiver is appointed by a court for all or a substantial portion of the assets of the other; (f) there is a substantial change in the financial 
  

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conditions of the other; or (g) the other party is unable to pay its material debts as they become due. In addition, either party shall have the right
to terminate this Agreement for breach by the other in the performance of any material obligation of this Agreement, where such breach continues for a period of thirty (30) days after written notice thereof to the other. Both parties’
financial obligations shall survive any termination of this Agreement and Seller shall return to Buyer, at Buyer’s expense, all tooling, equipment, components, drawings, specifications, documentations and supplies that are owned by Buyer.

  

	 4.
	 TERMS OF SALE. 

 4.1 Orders. For each Product to be manufactured, Buyer and Seller will mutually agree upon a manufacturing lead time, which will be the number of days it will take, on average, to receive and kit all
components, assemble, test and ship the Product. Commencing on the Effective Date, Buyer shall place, and Seller shall fulfill, firm monthly orders on a 3 months rolling basis for any of the Products, as amended by Buyer from time to time in
accordance with this Section 4. Buyer shall use all reasonable efforts to provide Seller with six months’ prior written notice of the discontinuance of any Product. Concurrently, Buyer shall also deliver to Seller a non-binding (as set forth
below), rolling forecast of its anticipated demand for Products [***]. Buyer’s rolling firm purchase orders and [***] forecast will be required to secure a sufficient quantity of long lead-time components. 
 4.1.1 Buyer will be liable to Seller for Seller’s restocking charges, transportation charges and other direct charges incurred by
Seller, in respect of materials ordered by Seller based on Buyer’s firm orders and not previously delivered to Buyer (“excess components”), on Buyer’s cancellation of purchase orders hereunder or Buyer’s termination of this
Agreement (unless Buyer terminates for cause); provided (i) the excess components are in the same condition as when originally purchased by Seller and (ii) that Buyer may, at its option, take delivery of any excess components resulting
from such a cancellation or termination. If Buyer decides not to take delivery of excess components, the Seller will make best efforts to sell the excess components in the open market and charge the Buyer for the variance between the original cost
and [***] of the agreed upon materials mark-up of the part and the price for the part received in the open market, provided, however, that if the variance is more than [***], Buyer’s consent shall be required before Seller may sell any such
excess component on the open market. If Seller is unable to sell the excess components in the open market within 30 days or Buyer does not give its consent as required by the previous sentence, and provided the excess components are in the same
condition as when originally purchased by Seller, Seller will (i) receive payment from Buyer for the original cost of the part plus [***] the agreed upon materials mark-up and (ii) transfer title and deliver the excess components to Buyer,
FOB Seller’s facility. Buyer will also be liable to Seller for long lead-time components which are non-cancelable and non-returnable (“NCNR”), as well as any MOQ (Minimum Order Quantity) and MPQ (Minimum Package Quantity) which have
been listed on costed BOM’s provided with quote and purchased by Seller (with Buyer’s prior written approval) to cover Buyer’s firm purchase orders hereunder. Seller and Buyer will agree to a list 
  

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of NCNR items that will be updated by mutual agreement quarterly during the calendar year. 
 4.1.2 Seller will obtain Buyer’s prior written approval to purchase any components with lead-times in excess of Buyer’s 3
months purchase orders. Once Seller has obtained Buyer’s approval, Buyer will be liable for these components in accordance with this Section 2.1. 
 4.2 Precedence. On any conflict between the term of this Agreement and the terms in any exhibit or purchase order, the order of precedence as to the controlling terms shall be as follows:

  

	 	 i.
	 The terms on the face page of Buyer’s purchase order as accepted by Seller; 

	 	 ii.
	 The terms of this Agreement; and 

	 	 iii.
	 The terms of any exhibits to this Agreement. 

 4.3 Increase, Rescheduling and Cancellation. 
 4.3.1 Buyer may increase, decrease or
reschedule the quantity of Products specified in a purchase order by delivering to Seller, by mail or facsimile, a written change order in accordance herewith (each, a “Change Order”); provided that no Change Order shall be effective until
acknowledged and accepted in writing by Seller but further provided that, if Seller fails to acknowledge or reject a Change Order within ten (10 calendar days after Seller actually received said notice, such Change Order will be deemed accepted.

 4.3.2 The schedule of each purchase order can be extended only twice, and the push out time cannot exceed 60 days from the
original or once extended commit date. Buyer may only submit a Change Order in accordance with the following parameters unless otherwise agreed in writing by both parties; 
  

			
	 Number of Calendar Days’
 Advance Notice.
	  	 Percentage of Scheduled Shipment that
 may be Rescheduled (OR Increased or decreased)

		
	0-30 days          	  	                         [***]

	31-60 days        	  	                         [***]

	61-90 days        	  	                         [***]

	91 or more days	  	                         [***]

 4.3.3 The rescheduling or cancellation of any of Buyer’s purchase orders
hereunder shall not affect any installments, or portions thereof, which have already been shipped by Seller. 
 4.3.4 If
Buyer requests that any shipments be rescheduled for more than 60 days at any one time, Buyer shall take ownership of excess material by issuing a purchase order. Buyer has the option to request Seller to (i) hold the excess material [***] or
(ii) accept shipment of excess material and pay purchase order. 
  

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 4.3.5 Buyer may cancel a Purchase Order hereunder in accordance with the foregoing parameters on written notice to Seller;
provided that, unless otherwise agreed in writing, Buyer’s cancellation of any purchase order, or any portion thereof, shall be subject to Section 4.1.1 above. 
  

	 5.
	 STATEMENT OF WORK. 

 5.1 Manufacturing Standards. The Buyer shall provide the Seller with specifications for the Products (the “Specifications”) The Seller shall maintain a database to ensure that all the Buyers and
components hereunder comply with AML; provided that the Seller shall not be bound by any changes in the AML unless provided by the Buyer in writing. The Seller shall manufacture and assemble each Product at its designated facility in compliance with
the Seller’s workmanship standards and Buyer’s specifications. The Seller shall use reasonable efforts to maintain the highest level of workmanship and shall conform to IPC 610 Class II (Commercial Standard) unless otherwise stated and
agreed to in writing. 
 In any event, if the Specifications described in Section 5.1 above and Seller’s
workmanship conflict, the Seller shall notify Buyer in writing and, unless otherwise agreed, the Specifications shall take precedence. The Buyer may change its manufacturing processes upon the Seller’s prior written approval, which shall not be
unreasonably refused. The Buyer may further request the Seller to repurchase specific material or parts for the manufacture or assembly of the Products. 
 Buyer shall provide support in the manufacturing process, including test procedure, troubleshooting guideline and on site training, as agreed in writing between Seller and Buyer. Boards that fail the testing should go
through the trouble shooting process. Boards that fail again after trouble shooting will be reviewed with Buyer at a regular bi-monthly meeting. Buyer and Seller will agree on disposition of defective boards within 30 days. If it is determined that
the failure is attributed to a design issue (and cannot be repaired within a reasonable period of time), Buyer will take ownership of the board within 60 days. 
 Neither party is granted any right or interest to the trademarks, mark or trade name (collectively, “Marks”) of the other party and neither party may use the other’s Marks without
such other party’s prior written consent. Notwithstanding the foregoing, Seller may use Buyer’s Marks solely in the course of assembling the Products in the packaging provided by Buyer as set forth herein and in the Specifications. Seller
shall not remove any of Buyer’s Marks from any Product or packaging therefore. 
 5.2 Seller Changes. Seller
shall not make or incorporate any changes in the Specifications without Buyer’s prior written approval, which approval shall not be unreasonably withheld. 
 5.3 Buyer Changes. Subject to this Section 5.3, Buyer may make engineering change orders (ECOs) to the Products from time to time during the term hereof by written notification to
Seller, describing the details of those engineering changes. Drawings, designs and/or 

  

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specifications required therefore shall also be supplied by Buyer. In accordance with Section 4.1 above, Buyer shall be liable for any and all NCNR
items and all materials and products purchased by Seller in response to Buyer’s firm orders rendered obsolete by such changes. Subject to Section 7, Buyer may propose an increase or decrease in the unit price of any Products and any
changes in the applicable manufacturing schedule or process subject to Section 4.3.2 above, provided that Buyer allows [***] Seller to provide feedback on proposed changes. The parties shall make all good faith efforts to agree upon any changes
in price, schedule or process [***]. If work-in-process is changed per Buyer’s engineering changes, Seller may ship said products and bill Buyer [***] for the labor and material costs caused by such changes. In addition, a processing fee of
[***] shall be charged to the Buyer when the number of ECOs processed exceeds [***]. 
  

	 6.
	 TOOLING TEST FIXTURES, AND FACILITIES REQUIREMENTS. 

 Seller shall itemize for Buyer all of the process tooling, assembly tools and test fixtures necessary or appropriate for Seller to manufacture the Products hereunder (the “NRE Items”).
Buyer shall issue a purchase order to Seller for all NRE Items prior to Seller’s purchase thereof provided that Buyer’s obligation to remit firm monthly purchase orders during the term hereof under Section 4.1 above shall be modified
to take account of the lead time to purchase and install all NRE Items. If Buyer fails to issue a purchase order for the NRE Items in a timely manner, thereby delaying production, the Product delivery dates set forth on any pending purchase orders
shall be appropriately adjusted. 
 At Buyer’s option, Buyer may ship to Seller on a consignment basis for Seller’s
use during the term hereof Buyer-approved tooling and test fixtures which constitute all or a portion of the NRE Items, subject to each party’s execution of a consignment agreement. Upon termination of this Agreement, Seller shall ship to Buyer
F.O.B. Seller’s manufacturing facility, at Buyer’s expense, all NRE Items paid for by Buyer and consigned to Seller hereunder. Notwithstanding the foregoing, process tooling, assembly tools and test fixtures and all intellectual property
rights herein and thereto which are developed solely at Seller’s expense (and without use of or reference to any of Buyer’s confidential and/or proprietary information or Buyer’s instructions or intellectual property rights) in
connection with Seller’s performance of this Agreement shall be the property of the Seller. All intellectual property produced, improved, or developed by Buyer in connection with the design, manufacture or assembly of the Products shall be
owned exclusively by Buyer. Ownership of any intellectual property developed by Seller shall vest with Buyer, if so developed at Buyer’s expense or based on Buyer’s confidential and/or proprietary information or Buyer’s instruction or
intellectual property rights. 
 Buyer and Seller will come to an agreement on the costs of initial set up of any special
facilities (for example, power requirements other than standard 11OV, special dedicated structures, etc) needed to support the manufacturing of the Buyer’s Product at the Seller’s plant. 
  

	 ***
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	 7.
	 PURCHASE PRICE, PAYMENT TERMS AND SALES AND USE TAX. 

 7.1 Purchase Price. The pricing for all Products shall be established by Seller’s quotation; provided that the default standard is PC 610 Class II (Commercial Standard). Subject to
the foregoing, Product pricing shall be detailed in the individual purchase orders submitted by Buyer hereunder. If, during the term of this Agreement, changed prices are put into effect as mutually agreed, such prices shall apply only to purchase
orders issued by Buyer after that effective date. Product price increases will be limited to once per quarter at the beginning of each quarter and Product pricing generally shall be subject to the following: 
 7.1.1. Standard costs shall be reviewed quarterly by the parties. 
 7.1.2 Quarterly cost reductions shall take effect in the new quarter, subject to the consumption of higher-priced material either in
stock, or with purchase orders. 
 7.1.3 Single component cost reductions shall take effect in the next following new
quarter. 
 7.1.4 Due to component market conditions (lead-times and allocations), certain materials and components must be
purchased at higher than standard costs. Seller shall obtain Buyer’s prior written approval before incurring these higher costs. Subject to the foregoing, Seller shall invoice Buyer for such increased costs. 
 7.1.5 Seller will invoice purchase price variance (PPV) on a monthly basis, based on Seller’s receiving report. 
 7.1.6 Purchases with a PPV of [***] per line item will require Buyer’s prior written consent. 
 7.2 Payment Terms. The purchase price for the Products and all other related charges contemplated hereunder shall be due and
payable net 30 days after the date of Seller’s invoice, which invoice shall not be dated prior to Product delivery. The Seller may charge a finance charge equal to the lesser of [***] per month or the highest rate permitted by law to
invoices unpaid after 45 days. 
 7.3 Sales and Use Tax. Buyer shall pay all applicable sales or use taxes, or provide
Seller with a resale tax certificate to support any exemption. If the Products are to be exported after delivery to Buyer, Buyer shall arrange for payment by its customer(s) or end-user(s) of all applicable import duties at the destination country.

  

	 8.
	 PACKAGING, SHIPPING AND DELIVERY. 

 8.1 Packaging. All Products shall be packaged for shipment so as to protect the Products from loss or damage in conformance with good commercial practice, the Specifications, government regulations and other
applicable standards. Any special packaging requirements shall be quoted 
  

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by the Seller and shall be implemented on Buyer’s written approval thereof. 
 8.2 Shipping. All shipments of Products hereunder shall be F.O.B. Seller’s manufacturing facility. Subject to the foregoing, Seller shall deliver Products within 20 miles of such
facility via Seller’s vehicle at no additional charge; provided that Seller shall be responsible for and shall bear all insurance and freight charges in connection therewith. Except as provided in this Section 8.2 for local shipments,
title to Products and risk of loss, damage or destruction shall pass from the Seller to Buyer upon delivery or transfer to the carrier selected by Seller; provided that Seller will reasonably attempt to select the least expensive carrier and seek
Buyer’s approval, which may not be unreasonably withheld. Any loss, injury or destruction of Products hereunder shall not release Buyer from any other obligation under this Agreement. 
  

	 9.
	 INSPECTION, ACCEPTANCE AND REJECTION. 

 9.1 See new Section 17 below. 
 9.2 All Products shall be subject
to inspection and acceptance by Buyer at its expense within ten (10) business days after Buyer receives such Products from Seller. The Buyer shall inspect the delivered Products and notify Seller of its acceptance or rejection of the Products
in writing within ten (10) business days. If the Buyer fails to inspect and accept the Products within the time frame as set forth in this Section 9.2, the Buyer shall waive its rights to claim the existence of any obvious defect or damage
by inspection due solely to mishandling during shipping. 
 9.3 Rejection. Buyer shall give Seller written notice of
any rejection based upon the physical condition of the Products actually received as set forth in Section 9.2. Upon any failure of any of the Products to meet the Specifications, the Seller shall, at its expense, retrieve the nonconforming
Products and either repair or replace of the defective products so that the Products meet the Specifications. Seller shall deliver the Product to Buyers facility, at its expense, and these acceptance and rejection provisions shall be reapplied.

  

	 10.
	 WARRANTIES, REMEDIES AND LIMITATION OF LIABILITY. 

 10.1 Warranty. For a period of 12 months (or such longer period if so warranted by Seller’s suppliers) from the date of delivery of any Product to Buyer (the “Warranty
Period”), Seller warrants that such Product shall (i) be free from defects in materials and workmanship, (ii) have been manufactured and assembled in accordance with Section 5 above, (iii) be free from all liens and
encumbrances and (iii) conform to its respective Specifications and purchase order. [Material warranty may not permit the pass through to 3PAR. 3PAR looks to Flash to resolve material deficiencies – Flash has the direct contractual
relationship with the supplier.] 
 On a breach by Seller of any of the foregoing warranties, and subject to any
indemnification set forth below, Seller’s sole liability and Buyer’s exclusive remedy therefor shall be as follows: (i) Buyer shall return the affected Product(s) to Seller, at Seller’s expense, in accordance with the Return
Materials Authorization (“RMA”). Seller shall, at its sole discretion and at its expense, 

  

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as quickly as possible, repair or replace any defective Products returned by Buyer during the Warranty Period and shall ship the repaired or replacement
Products to Buyer, at Seller’s expense. . The unexpired warranty period, plus any time that the Product was in Seller’s possession for repair or replacement, shall apply to the returned Product. If there is no defect found on the product
returned, Seller should charge Buyer a reasonable fee to cover the labor and based on an agreed upon labor rate. 
 10.2
Limitation of Warranty. EXCEPT AS EXPRESSLY STATED IN SECTION 10.1, SELLER HEREBY DISCLAIMS ANY EXPRESS OR IMPLIED WARRANTIES, INCLUDING BUT NOT LIMITED TO ANY IMPLIED WARRANTY OF MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE. SELLER
SHALL NOT BE RESPONSIBLE FOR ANY DEFECT CAUSED BY PRODUCT MISUSE. 
 10.3 Limitation of Liability. EXCLUDING CLAIMS OR
DAMAGES ARISING OUT OF ONE PARTY’S MISAPPOPRIATION OF THE OTHER PARTY’S INTELLECTUAL PROPERTY OR CONFIDENTIAL INFORMATION OR SUBJECT TO INDEMNICATION UNDER SECTION 11 BELOW, UNDER NO CIRCUMSTANCE SHALL EITHER PARTY BE LIABLE TO THE OTHER,
OR TO ANY OTHER PERSON, FOR SPECIAL, INDIRECT, INCIDENTAL OR CONSEQUENTIAL DAMAGES BASED UPON BREACH OF WARRANTY, BREACH OF CONTRACT, TORT, STATUTORY CLAIM OR ANY OTHER LEGAL THEORY PERTAINING TO ITS PERFORMANCE UNDER THIS AGREEMENT. 
  

	 11.
	 INDEMNIFICATION. 

 11.1 Seller Indemnification. Seller represents and warrants that to the best of its knowledge and belief the manufacturing processes employed in the manufacture of the Products do not infringe on any patent,
trademark, trade secret, copyright or other intellectual property or proprietary right and that Seller is unaware of any claim or infringement, either threatened or pending. Seller shall indemnify, defend and hold Buyer harmless from and against any
claim for such alleged infringement. If any such process is found to so infringe, Seller shall, at its option and sole expense, either make such process non-infringing or procure the rights to continue to use such infringing process; provided that,
if Seller is unable to do either of the foregoing, either party may terminate this Agreement without any further obligation or liability to the other party. The foregoing remedies are the sole and exclusive remedies of the Buyer in the event of an
infringement. Section 10.3 above shall apply with respect to any claim of patent, trademark or copyright infringement made solely with respect to the incorporation of specific components into the Products at the express direction of Buyer,
including such incorporations made in express compliance with the Specifications. 
 Excluding claims to the extent covered
by Section 11.1 above or Section 11.2 below, Seller shall indemnify, defend and hold Buyer harmless from and against any personal injury claims, damages, claims, actions and liability suffered or incurred by Buyer (including
attorney’s fees) resulting from Seller’s negligence, failure to manufacture Products in conformance with Specifications or default of this Agreement. 
  

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 11.2 Buyer Indemnification. Buyer represents and warrants that to the best of its knowledge and belief it owns, or
has the legal right to use, the designs and specifications needed to manufacture the Products, that to the best of its knowledge and belief the designs and specifications do not infringe on any patent, trademark, trade secret, copyright or other
proprietary right, and that Buyer is unaware of any claim of infringement, either threatened or pending. Excluding claims to the extent covered by Sections 11.1 above, Buyer shall defend, indemnify and hold Seller harmless from and against any
claims or liabilities for, or by reason of, any alleged infringement of any patent, trademark, trade secret, copyright or other proprietary right caused by Seller’s use and reliance upon any Product Specification in manufacturing the Product,
or arising out of the Products being incorporated by Buyer into another Product or system which infringe upon any patent, trademark, trade secret, copyright or other proprietary right. The foregoing remedies are the sole and exclusive remedies of
Seller in the event of an infringement or similar claim hereunder. 
 Buyer shall indemnify, defend and hold Seller harmless
from and against any and all claims, damages and liability suffered by Seller resulting from personal injury and/or property damage to third parties, including without limitation Seller’s employees, due to defects in the design of any Product
or the Specification or in any specific component incorporated into a Product at the express direction of the Buyer (including any such incorporated made in express compliance with specific Product Specifications.) 
 Buyer further agrees to indemnify, defend and hold Seller harmless from any claims, demands, causes of action, liabilities or damages,
including attorneys’ fees, arising from or relating to any claim that products manufactured by Seller herein, including any mark, symbol, feature or part thereon, infringe any trademark right. 
 11.3 Condition to Indemnification. The foregoing indemnities are conditioned on (i) the indemnified party’s prompt
written notice of any claim or proceeding subject to indemnity; (ii) the indemnifying party’s control of the defense and settlement of any claim hereunder and (iii) all reasonable cooperation and assistance by the indemnified party in
the defense and settlement of such claim at the expense of the indemnifying party. The indemnifying party shall not be responsible for any costs incurred or compromise made by the indemnified party without the indemnifying party’s prior written
consent. 
  

	 12.
	 INSURANCE. 

 Each party shall have and maintain, during the term hereof and for three (3) years thereafter, product liability insurance with [***] policy limits and automobile liability insurance with policy limits and coverage reasonably adequate
to cover all perils customarily protected against in performing its obligations hereunder. Each party shall provide the other party with a certificate of insurance on request. 
  

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	 13.
	 CONFIDENTIALITY. 

 It is understood and agreed that the terms of this Agreement are confidential, and no news release, advertisement or public announcement, or denial or confirmation of the same, concerning any part of the subject
matter of this Agreement shall be made by either party hereto without the prior written consent of the other party in each instance except to the extent that such disclosure is needed in any action or proceedings enforce or interpret the Agreement
or its terms or provisions. Further, the parties hereto acknowledge that, during the term hereof, they may become aware of confidential, secret or proprietary information pertaining to the other party and its operations (including, without
limitation, information with respect to bidding, pricing, suppliers and customers or lists thereof, research, development and engineering, and internal operations, inventory control, data processing, technical data, trade secrets, and other
procedures and systems) (“Confidential Information”) and that disclosure of such information would materially and adversely affect the affected party. Each party hereto agrees to maintain such Confidential Information and not to disclose
any such Confidential Information to any person, firm or other entity, or to utilize the same in any manner or form, except as may be expressly required by the terms and conditions of this Agreement. The foregoing obligations of confidentiality
shall not apply to any Confidential Information that the receiving party can show is or was: (i) Already known to the receiving at the time of disclosure without obligation of confidentiality; (ii) Independently developed by the receiving
party without use of or access to the Confidential Information; (iii) Approved for disclosure by the disclosing party beforehand and in writing; (iv) Publicly known without breach of this Agreement; (v) Lawfully received by receiving
party from a third party without obligation of confidentiality; (vi) Required to be disclosed by applicable law or order of a court, tribunal or other governmental agency; provided, however, that the receiving party shall promptly notify the
disclosing party in writing of such requirement, and shall cooperate with the disclosing party to minimize the scope of any such disclosure, and in the obtaining of a confidentiality, protective or similar order. Notwithstanding anything to the
contrary, the confidentiality provisions set forth in this Section 13 shall survive any termination of this Agreement. 
  

	 14.
	 ASSIGNMENT. 

 Either party may freely assign this Agreement without the prior consent of the other party in connection with a transfer of all or substantially all of its business or assets, whether by corporate reorganization, acquisition, sale of assets
or merger. Subject to the foregoing, neither party may assign this Agreement in whole or in part without the prior written consent of the other party, which will not be unreasonably withheld. 
  

	 15.
	 MISCELLANEOUS. 

 15.1 Entire Agreement; Amendment; Severability; and Waiver. This Agreement represents the entire agreement between the parties concerning the subject matter hereof, and may not be modified except in writing
signed by both parties. This Agreement supersedes all proposals or quotations, oral or written, and all negotiations, conversations, or discussions between or among 

  

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the parties relating to the subject matter of this Agreement. Any waiver of any provision of this Agreement must be in writing and signed by the party
alleged to have waived such provision, and any single waiver shall not operate to waive subsequent or other defaults. The unenforceability of any provision of this Agreement shall not affect the remaining provisions or any portions thereof.

 15.2 Notice. Notices or other communications under this Agreement shall be in writing and shall be effective when
delivered personally or by overnight courier, or mailed, postage prepaid, by certified or registered mail to each party at the address set forth below (or to such other address as either party may from time to time provide the other): 
  

			
	 Flash Electronics, Inc.:
	  	 Buyer:

	 4050 Starboard Drive
	  	 3PARdata, Inc

	 Fremont, CA 94538-6402
	  	 (address as above)

	 Attn:
                                
	  	 Attn: Paul Harvey

 15.3 Force Majeure. Nonperformance under this Agreement will be excused,
and neither party will bear any resulting liability to the other, to the extent that such performance is rendered commercially impracticable or delayed by an act of God or any other cause beyond the reasonable control of the non-performing party. If
any force majeure event affecting Buyer or Seller continues for a period exceeding one (1) month without a prospect of a cure of such event, the other side shall have the option, in its sole discretion, to terminate this Agreement, upon 14 days
notice. Such termination shall take effect immediately upon the written notice from the other party to the party affected by the force majeure event. 
 15.4 Relationship of Parties. The parties are and shall be independent contractors to one another, and nothing herein shall be deemed to cause this Agreement to create an agency, partnership, joint venture or
any other relationship between the parties. 
 15.5 Third Party Beneficiary. This Agreement is intended for the
benefit of the parties and their respective permitted assigns and no other persons shall be entitled to rely upon this Agreement or be entitled to any benefits hereunder. 
 15.6 Governing Law; Dispute Resolution. This Agreement shall in all respects be governed by and construed in accordance with the laws of the State of California, excluding that body of
laws known as conflict of laws. All disputes between the parties arising out of or relating to this Agreement (other than actions seeking only equitable remedies) shall be settled by binding arbitration in Alameda County or Santa Clara County,
California pursuant to the Commercial Arbitration Rules of the American Arbitration Association. The arbitrator may award any legal or equitable remedy and may, in his or her own discretion, require one party to pay the costs of the arbitration as
well as the arbitrator’s fees and expenses, including reasonable attorney’s fees, of the other party. 
  

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 15.7 Advertising and Publicity. No advertising, press release or other publicity by Seller or Buyer shall display or
contain any trademarks or references to the other party or its customers without such other party’s prior written consent. 
 15.8 Checks marked “Payment in Full”. Conditioned upon Seller’s continued performance of all its obligations hereunder, Seller may accept and deposit any checks marked “Payment in Full” or words to the like
effect without waiving its right to payment in full hereunder UNLESS BUYER SHALL GIVE WRITTEN NOTICE TO SELLER, SPECIFYING THE AMOUNT IN DISPUTE AND THE BASIS THEREFOR AND STATING THAT THE CHECK IS BEING TENDERED AS FULL PAYMENTSe11er shall
furnish Buyer with any information required during the term of this Agreement to enable Buyer to comply with the requirements of any government agency concerning the sale and use of the Products. 
 15.9 Attorneys’ fees and costs. If any action or proceeding is brought to enforce or interpret the terms or provisions of
this Agreement, the prevailing party shall be entitled to an award of reasonable attorneys’ fees and costs. 
  

	 16.
	 BUYER’S PROPERTY 

 Notwithstanding anything in this Agreement to the contrary, all Buyer’s property shall be clearly segregated and identified as the sole property of Buyer, and maybe provided to a third party by Seller only after
obtaining prior written approval from Buyer. Seller shall bear all costs for damages that may occur to Buyer’s property while in Seller’s possession. Seller shall use Buyer’s property only for fulfilling the performance of this
Agreement. Upon Buyer’s request, or upon the expiration or termination of this Agreement, Seller shall return all Buyers’ property to Buyer in good condition, normal wear and tear excepted. 
 Buyer hereby grants to Seller a non-exclusive, royalty-free, nontransferable license to use Buyer’s intellectual property embodied
in any of Buyer’s property provided to Seller, for the sole purpose of: (i) manufacturing and providing Product(s) hereunder for sale to Buyer under this Agreement, and (ii) providing warranty and support services for the Product(s)
to Buyer under this Agreement. 
  

	 17.
	 QUALITY 

 17.1 Quality Program. In addition to Section 5, Seller shall maintain an objective quality program for all Products supplied pursuant to this Agreement. Seller shall, upon Buyer’s request, provide Buyer copies of
Seller’s program and supporting test documentation. Seller shall use commercially reasonable efforts to promptly undertake, at its sole expense, all actions necessary to implement the procedures and processes to achieve the quality standards,
including without limitation the processes for addressing epidemic failures. (An epidemic failure means the occurrence of failures in excess of the agreed to [AFR] allowances for Products within any three (3) month period for a period of three
(3) years from the date of delivery of the products to Buyer.) 
  

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 17.2 Manufacturing Site(s). Seller shall manufacture Products only at the manufacturing sites qualified by Buyer.

 17.3 Inspection. Buyer shall have the right to inspect, at Buyer’s expense, Seller’s manufacturing sites
with respect to the manufacturing processes for the Products at any time during the term of this Agreement with reasonable notice. Buyer’s right to inspection shall apply as well to any supplier or authorized subcontractor of Seller. Seller
shall provide, at no charge to Buyer, access to such facilities as are reasonably required by Buyer in performing any inspection. 
  

	 18.
	 TOOLING 

 Notwithstanding anything in this Agreement to the contrary, all tooling produced or obtained for the Products delivered hereunder (if any) and paid for by Buyer shall become and remain the property of Buyer at the time payment in full is
received for the tooling by Seller. Such tooling shall be used by Seller only for the benefit of Buyer, and shall be delivered to Buyer upon request. If Buyer requests the return of any tooling from Seller and Seller determines the return of such
tooling prevents Seller from providing the Products to Buyer, then Seller shall inform Buyer in writing, and Buyer and Seller shall negotiate a mutually acceptable resolution. 
 Buyer, at its sole discretion, may consign to Seller, items, including, but not limited to, materials and/or equipment relating to the production and/or testing of the Products at Seller’s
location. The material and/or equipment shall be utilized by Seller only for the production and/or testing of the Products. Buyer shall assist Seller in installing the materials and/or equipment and shall provide training and maintenance
instructions, if requested by Seller or required by Buyer. Buyer shall be responsible for repairing, upgrading, replacing and/or maintaining the materials and/or equipment consigned to Seller. However, Seller shall provide routine maintenance.

  

	 19.
	 MUTUAL COOPERATION 

 Seller represents that it will pursue this Agreement to the best of its ability and in the best interest of Buyer, and Buyer represents that it will cooperate with Seller in reaching the objectives of this Agreement.
Seller will appoint a project manager for the duration of this Agreement and will require Buyer to establish one person to coordinate all activities through. In the event that the project manager is not operating in the best interest of Buyer, then
Buyer shall contact Seller to discuss Agreement-related concerns and/or complaints. 
  

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 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by the duly authorized representatives as of the day and
year first above written. 
  

									
	 FLASH ELECTRONICS, INC.
	 		 	 BUYER 

		 		 	 3PARdata, Inc.

			
	 /s/ R. Dean
	 		 	 /s/ Paul Harvey

	 Name:
	  	 R. Dean
	 		 	 Name:
	 	 Paul Harvey

	 Title:
	  	 President FUSA
	 		 	 Title:
	 	 Vice President

  

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Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00132-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00132-of-00352.parquet"}]]