Document:

Restricted Stock Unit Agreement - Anne M. Lynch

 Exhibit 10.23 
 THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED OR QUALIFIED UNDER THE U.S. SECURITIES ACT OF 1933 OR THE SECURITIES LAWS OF ANY STATE OR FOREIGN JURISDICTION, AND MAY BE OFFERED AND SOLD
ONLY IF REGISTERED AND QUALIFIED PURSUANT TO THE RELEVANT PROVISIONS OF U.S. FEDERAL AND STATE OR APPLICABLE FOREIGN SECURITIES LAWS OR IF THE COMPANY IS PROVIDED AN OPINION OF COUNSEL SATISFACTORY TO THE COMPANY THAT REGISTRATION AND QUALIFICATION
UNDER U.S. FEDERAL AND STATE OR APPLICABLE FOREIGN SECURITIES LAWS IS NOT REQUIRED. 
 ENVIVIO, INC. 

2010 STOCK INCENTIVE PLAN 
 NOTICE OF RESTRICTED STOCK UNIT AWARD 
 Envivio, Inc. (the
“Company”) hereby grants you the following Restricted Stock Units (or “RSUs”) representing shares of its common stock (“Shares”). The terms and conditions of this award (“Award”) are set forth in the
Restricted Stock Unit Agreement and the Envivio, Inc. 2010 Stock Incentive Plan (the “Plan”), both of which are attached to and made a part of this document. 
  

			
	Name of Participant:	 	Anne Lynch
		
	Total Number of Restricted Stock Units Granted:	 	225,000
		
	Date of Grant:	 	April 13, 2011
		
	Vesting Commencement Date:	 	The RSUs will begin vesting, if at all, on the first day following the end of the underwriter’s lock-up period (the “Lock-Up Expiration Date”) following an initial
underwritten public offering of the Company’s common stock national securities exchange pursuant to an effective registration statement on Form S-1 (“IPO”) completed on or before December 31, 2011, and all RSUs subject to the Award
will be forfeited automatically if the Company does not complete an IPO on or before December 31, 2011.
		
	Vesting Schedule:	 	1/12th of the RSUs will vest on the last day of each of the 20 fiscal quarters following the Lock-Up Expiration Date subject to your continued employment through each such date,
provided that on the last day of each fiscal quarter, the Company’s price per Share must be greater than the following amounts in the corresponding fiscal year (adjusted pursuant to Section 10 of the Plan for any stock split in or similar
capital event affecting

			
		  	 Company’s shares and measured as the average closing price in the last 5 trading days of the fiscal quarter) in order for each
installment of the RSUs to vest, and provided further that no more than 100% of the RSUs will vest:
  
 FY 2012: $1.19 * ADJ
  
 FY
2013: $1.25 * ADJ
  
 FY 2014: 1.31 * ADJ

 
 FY 2015: 1.38 * ADJ

 
 FY 2016: 1.45 * ADJ

 
 FY 2017: 1.52 * ADJ

 
 N0= ^IXIC average index over the 5 trading days following the effective date of the
IPO
  
 N= ^IXIC average index over the last 5 trading days of the fiscal
quarter
  
 ADJ= The NASDAQ Adjustment factor = N/N0

 
 Notwithstanding any contrary provisions in your Change of Control Severance
Agreement with the Company (the “Change of Control Agreement”), if a Change of Control (as defined in your Change of Control Agreement) at $250 million or more occurs after an IPO completed in 2011:

 

•      Single Trigger: No less than 25% of the unvested RSUs subject to
the Award will be vested immediately prior to the Change of Control. The balance will vest in accordance with the original vesting schedule subject to your continued employment but without regard to Stock price performance.

 

•      Double Trigger: If your employment terminates as a result of an
Involuntary Termination (as defined in your Change of Control Agreement) on or at any time within 18 months after the Change of Control, 100% of the RSUs will vest.

 By signing this document, you acknowledge receipt of a copy of the Plan, and agree that
(a) you have carefully read, fully understand and agree to all of the terms and conditions described in the attached Restricted Stock Unit Agreement and the Plan; (b) you hereby make the investment representations contained in the
Restricted Stock Unit Agreement with respect to the grant of this Award; (c) you understand and agree that the Restricted Stock Unit Agreement, including its cover sheet and attachments, constitutes the entire understanding between you and the
Company regarding this Award, and that any prior agreements, commitments or negotiations concerning this Award are replaced and superseded; and (d) you have been given an opportunity to consult your own legal and tax counsel with respect to all
matters relating to this Award prior to signing this cover sheet and that you have either consulted such counsel or voluntarily declined to consult such counsel. 
  

							
	ANNE LYNCH	 		  	ENVIVIO, INC.
				
	 /s/  Anne Lynch
	 		  	By:	 	 /s/  Julien Signes

				
	 Anne Lynch
	 		  	Its:	 	 CEO

	Print Name	 		  		 	

 ENVIVIO, INC. 
 2010 STOCK INCENTIVE PLAN 
 RESTRICTED STOCK UNIT AGREEMENT

 SECTION 1. PAYMENT FOR RESTRICTED STOCK UNITS. 
 No cash payment is required for the Restricted Stock Units you receive. You are receiving the Restricted Stock Units in consideration for past Services rendered by you. 

SECTION 2. VESTING. 
 The Restricted Stock Units that you are receiving will vest in installments, as shown in the Notice of Restricted Stock Unit Award. 

No additional Restricted Stock Units vest after your Service as an Employee or a Consultant has terminated for any reason. 

SECTION 3. FORFEITURE. 
 If your Service terminates for any reason, then your Award expires immediately as to the number of Restricted Stock Units that have not vested before the termination date and do not vest as a result of
termination. 
 This means that the unvested Restricted Stock Units will immediately be cancelled. You receive no payment for
Restricted Stock Units that are forfeited. 
 The Company determines when your Service terminates for this purpose and all
purposes under the Plan and its determinations are conclusive and binding on all persons. 
 SECTION 4. NATURE OF RESTRICTED STOCK
UNITS. 
 Your Restricted Stock Units are mere bookkeeping entries. They represent only the Company’s unfunded and
unsecured promise to issue Shares on a future date. As a holder of Restricted Stock Units, you have no rights other than the rights of a general creditor of the Company. 
 SECTION 5. NO VOTING RIGHTS OR DIVIDENDS. 
 Your Restricted Stock
Units carry neither voting rights nor rights to dividends. You, or your estate or heirs, have no rights as a shareholder of the Company unless and until your Restricted Stock Units are settled by issuing Shares. No adjustments will be made for
dividends or other rights if the applicable record date occurs before your Shares are issued, except as described in the Plan. 

 SECTION 6. RESTRICTED STOCK UNITS NONTRANSFERABLE. 

You may not sell, transfer, assign, pledge or otherwise dispose of any Restricted Stock Units. For instance, you may not use your
Restricted Stock Units as security for a loan. If you attempt to do any of these things, your Restricted Stock Units will immediately become invalid. 
 SECTION 7. SETTLEMENT OF RESTRICTED STOCK UNITS. 
 Each of your
vested Restricted Stock Units will be settled when it vests. 
 At the time of settlement, you will receive one Share for each
vested Restricted Stock Unit; provided, however, that no fractional Shares will be issued or delivered pursuant to the Plan or this Agreement, and the Company will determine whether cash will be paid in lieu of any fractional Share or whether such
fractional Share and any rights thereto will be canceled, terminated or otherwise eliminated. In addition, the Shares are issued to you subject to the condition that the issuance of the Shares not violate any law or regulation. 

SECTION 8. WITHHOLDING TAXES AND STOCK WITHHOLDING. 
 No Shares will be distributed to you unless you have made arrangements acceptable to the Company to pay withholding taxes that may be due as a result of this Award or the settlement of the Restricted
Stock Units. With the Company’s consent, these arrangements may include (a) withholding Shares that otherwise would be distributed to you when the Restricted Stock Units are settled or (b) surrendering Shares that you previously
acquired. The Fair Market Value of these Shares, determined as of the date when taxes otherwise would have been withheld in cash, will be applied as credit against the withholding taxes. You also authorize the Company, or your actual employer, to
satisfy all withholding obligations of the Company or your actual employer from your wages or other cash compensation payable to you by the Company or your actual employer. 
 SECTION 9. RESTRICTIONS ON RESALE. 
 You hereby agree that in
connection with any underwritten public offering by the Company of its equity securities pursuant to an effective registration statement filed under the U.S. Securities Act of 1933, as amended (“Securities Act”), including the
Company’s initial public offering, you shall not, directly or indirectly, engage in any transaction prohibited by the underwriter, or sell, make any short sale of, contract to sell, transfer the economic risk of ownership in, loan, hypothecate,
pledge, grant any option for the purchase of, or otherwise dispose or transfer for value or agree to engage in any of the foregoing transactions with respect to any Stock without the prior written consent of the Company or its underwriters, for such
period of time after the effective date of such registration statement as may be requested by the Company or such underwriters. Such period of time shall not exceed one hundred eighty (180) days and may be required by the underwriter as a
market condition of the offering; provided, however, that if either (a) during the last seventeen (17) days of such one hundred eighty (180) day period, the Company issues an earnings release or material news or a material event
relating to the Company occurs or (b) prior to the expiration of such one hundred eighty (180) day period, the Company announces that it will release earnings results during the sixteen (16) day period beginning on the last day of the
one hundred eighty (180) day period, then the restrictions 

 
imposed during such one hundred eighty (180) day period shall continue to apply until the expiration of the eighteen (18) day period beginning on the issuance of the earnings release or
the occurrence of the material news or material event; provided, further, that in the event the Company or the underwriter requests that the one hundred eighty (180) day period be extended or modified pursuant to then-applicable law, rules,
regulations or trading policies, the restrictions imposed during the one hundred eighty (180) day period shall continue to apply to the extent requested by the Company or the underwriter to comply with such law, rules, regulations or trading
policies. You hereby agree to execute and deliver such other agreements as may be reasonably requested by the Company or the underwriter which are consistent with the foregoing or which are necessary to give further effect thereto. To enforce the
provisions of this section, the Company may impose stop-transfer instructions with respect to the Stock until the end of the applicable stand-off period. 
 SECTION 10. THE COMPANY’S RIGHT OF FIRST REFUSAL. 
 Before any
shares of Stock registered in your name may be sold or transferred, such shares shall first be offered to the Company as follows (the “Right of First Refusal”): 

 

	 	(a)	You shall promptly deliver a notice (“Notice”) to the Company stating (i) your bona fide intention to sell or transfer such shares, (ii) the number
of such shares to be sold or transferred, and the basic terms and conditions of such sale or transfer, (iii) the price for which you propose to sell or transfer such shares, (iv) the name of the proposed transferee, and (v) proof
satisfactory to the Company that the proposed sale or transfer will not violate any applicable U.S. federal, state or foreign securities laws. The Notice shall be signed by both you and the proposed transferee and must constitute a binding
commitment subject to the Company’s Right of First Refusal as set forth herein. 

  

	 	(b)	Within thirty (30) days after receipt of the Notice, the Company may elect to purchase all or any portion of the shares to which the Notice refers, at the price
per share specified in the Notice. If the Company elects not to purchase all or any portion of the shares, the Company may assign its right to purchase all or any portion of the shares. The assignees may elect within thirty (30) days after
receipt by the Company of the Notice to purchase all or any portion of the shares to which the Notice refers, at the price per share specified in the Notice. An election to purchase shall be made by written notice to you. Payment for shares
purchased pursuant to the Right of First Refusal shall be made within thirty (30) days after receipt of the Notice by the Company and, at the option of the Company, may be made by cancellation of all or a portion of outstanding indebtedness, if
any, or in cash or both. 

  

	 	(c)	 If all or any portion of the shares to which the Notice refers are not elected to be purchased, as provided in subparagraph (b), you may sell those
shares to any person named in the Notice at the price specified in the Notice, provided that such sale or transfer is consummated within sixty (60) days of the date of said Notice to the Company, and provided, further, that any such sale is
made in compliance with applicable U.S. federal, state and foreign securities laws and not in violation 

	 	 
of any other contractual restrictions to which you are bound. The third-party transferee shall be bound by, and shall acquire the shares of Stock subject to, the provisions of this Agreement,
including the Company’s Right of First Refusal. 

  

	 	(d)	Any proposed transfer on terms and conditions different from those set forth in the Notice, as well as any subsequent proposed transfer shall again be subject to the
Company’s Right of First Refusal and shall require compliance with the procedures described in this Section. 

  

	 	(e)	You agree to cooperate affirmatively with the Company, to the extent reasonably requested by the Company, to enforce rights and obligations pursuant to this Agreement.

  

	 	(f)	Notwithstanding the above, neither the Company nor any assignee of the Company under this Section shall have any rights pursuant to the Right of First Refusal at any
time subsequent to the closing of a public offering of the common stock of the Company pursuant to a registration statement declared effective under the Securities Act. 

 

	 	(g)	The Right of First Refusal shall not apply to (i) a transfer by will or intestate succession, or (ii) a transfer to one or more members of your Immediate
Family (defined below) or to a trust established by you for the benefit of you and/or one or more members of your Immediate Family, provided that the transferee agrees in writing on a form prescribed by the Company to be bound by all of the
provisions of this Agreement to the same extent as they apply to you. For purposes of this Agreement, Immediate Family means any child, stepchild, grandchild, parent, stepparent, grandparent, spouse, sibling, mother-in-law, father-in-law,
son-in-law, daughter-in-law, brother-in-law or sister-in-law, and shall include adoptive relationships. 

  

	 	(h)	If the Company makes available, at the time and place and in the amount and form provided in this Agreement, the consideration for the Stock to be repurchased in
accordance with the Right of First Refusal, then from and after such time the person from whom such shares are to be repurchased shall no longer have any rights as a holder of such shares (other than the right to receive payment of such
consideration in accordance with this Agreement). Such shares shall be deemed to have been repurchased in accordance with the applicable provisions hereof, whether or not the certificate(s) therefor have been delivered as required by this Agreement.

 SECTION 11. LEGEND OF SHARES. 
 All certificates representing the Stock awarded upon settlement of the Restricted Stock Units shall, where applicable, have endorsed thereon the following legends and any other legends required by
applicable securities laws: 
 THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED OR QUALIFIED UNDER

 
THE U.S. SECURITIES ACT OF 1933, AS AMENDED, OR THE SECURITIES LAWS OF ANY STATE OR FOREIGN JURISDICTION, AND MAY BE OFFERED AND SOLD ONLY IF REGISTERED AND QUALIFIED PURSUANT TO THE RELEVANT
PROVISIONS OF U.S. FEDERAL AND STATE AND APPLICABLE FOREIGN SECURITIES LAWS OR IF THE COMPANY IS PROVIDED AN OPINION OF COUNSEL SATISFACTORY TO THE COMPANY THAT REGISTRATION AND QUALIFICATION UNDER U.S. FEDERAL AND STATE AND APPLICABLE FOREIGN
SECURITIES LAWS IS NOT REQUIRED. 
 THE SECURITIES REPRESENTED BY THIS CERTIFICATE MAY NOT BE SOLD, TRANSFERRED, ENCUMBERED OR IN
ANY MANNER DISPOSED OF, EXCEPT IN COMPLIANCE WITH THE TERMS OF A WRITTEN AGREEMENT BETWEEN THE COMPANY AND THE INITIAL HOLDER HEREOF. SUCH AGREEMENT PROVIDES FOR CERTAIN TRANSFER RESTRICTIONS, INCLUDING RIGHTS OF FIRST REFUSAL UPON AN ATTEMPTED
TRANSFER OF THE SECURITIES. THE SECRETARY OF THE COMPANY WILL UPON WRITTEN REQUEST FURNISH A COPY OF SUCH AGREEMENT TO THE HOLDER HEREOF WITHOUT CHARGE. 
 SECTION 12. INVESTMENT REPRESENTATIONS. 
  

	 	(a)	This Agreement is made with you in reliance upon your representations and warranties to the Company, which by your acceptance hereof you acknowledge and agree, that the
Stock which you will receive in connection with this Award will be acquired for investment for an indefinite period for your own account, not as a nominee or agent, and not with a view to the sale or distribution of any part thereof, and that, at
the time you receive the Stock, you will have no present intention of selling, granting participation in, or otherwise distributing the same, but subject, nevertheless, to any requirement of law that the disposition of your property shall at all
times be within your control. By executing this Agreement, you further represent and warrant that you do not, and at the time you receive the Stock will not, have any contract, understanding or agreement with any person to sell, transfer, or grant
participation to such person or to any third person, with respect to any of the Stock. 

  

	 	(b)	You understand that the Stock you will receive in connection with this Award will not be registered or qualified under applicable U.S. federal, state or foreign
securities laws on the ground that the sale provided for in this Agreement is exempt from registration or qualification under applicable U.S. federal, state or foreign securities laws and that the Company’s reliance on such exemption is
predicated on your representations and warranties set forth herein. 

	 	(c)	You agree that in no event will you make a disposition of any of the Stock unless and until (i) you shall have notified the Company of the proposed disposition and
shall have furnished the Company with a statement of the circumstances surrounding the proposed disposition and (ii) you shall have furnished the Company with an opinion of counsel satisfactory to the Company to the effect that (A) such
disposition will not require registration or qualification of such Stock under applicable U.S. federal, state or foreign securities laws or (B) appropriate action necessary for compliance with the U.S. federal, state or foreign securities laws
has been taken or (iii) the Company shall have waived, expressly and in writing, its rights under clauses (i) and (ii) of this Section. 

  

	 	(d)	With respect to a transaction occurring prior to such date as the Plan and Stock thereunder are covered by a valid Form S-8 or similar U.S. federal registration
statement, this Subsection shall apply unless the transaction is covered by the exemption in California Corporations Code section 25102(o) or a similar broad-based exemption. In connection with the investment representations made herein, you
represent that you are able to fend for yourself in the transactions contemplated by this Agreement, you have such knowledge and experience in financial and business matters as to be capable of evaluating the merits and risks of your investment, you
have the ability to bear the economic risks of your investment and have been furnished with and have access to such information as would be made available in the form of a registration statement together with such additional information as is
necessary to verify the accuracy of the information supplied and to have all questions answered by the Company. 

  

	 	(e)	You understand that if the Company does not register with the Securities and Exchange Commission pursuant to section 12 of the U.S. Securities Exchange Act of 1934, as
amended, or if a registration statement covering the Stock (or a filing pursuant to the exemption from registration under Regulation A of the Securities Act) under the Securities Act is not in effect when you desire to sell the Stock, you may be
required to hold the Stock that you receive in connection with this Award for an indeterminate period. You also acknowledge that you understand that any sale of the Stock which might be made by you in reliance upon Rule 144 under the Securities Act
may be made only in limited amounts in accordance with the terms and conditions of that Rule. 

 SECTION 13. NO DUTY TO
TRANSFER IN VIOLATION OF THIS AGREEMENT. 
 The Company shall not be required (a) to transfer on its books any
shares of Stock of the Company which shall have been sold or transferred in violation of any of the provisions set forth in this Agreement or (b) to treat as owner of such shares or to accord the right to vote as such owner or to pay dividends
to any transferee to whom such shares shall have been so transferred. 
 SECTION 14. OTHER NECESSARY ACTIONS. 

The parties agree to execute such further instruments and to take such further action as may reasonably be necessary to carry out the
intent of this Agreement. 

 SECTION 15. NO RETENTION RIGHTS. 

This Agreement does not give you the right to be retained by the Company, or a parent or subsidiary of the Company in any capacity. The
Company or a parent or subsidiary of the Company reserves the right to terminate your Service at any time and for any reason without thereby incurring any liability to you. 
 SECTION 16. ADJUSTMENTS. 
 In the event of a stock split, a stock
dividend or a similar change in Company Shares, the number of Restricted Stock Units covered by this Award shall be adjusted pursuant to the Plan. 
 SECTION 17. SUCCESSORS AND ASSIGNS. 
 This Agreement shall inure to
the benefit of the successors and assigns of the Company and, subject to the restrictions on transfer herein set forth, be binding upon you and your heirs, executors, administrators, successors and assigns. The failure of the Company in any instance
to exercise the Right of First Refusal described herein shall not constitute a waiver of any other Right of First Refusal that may subsequently arise under the provisions of this Agreement. No waiver of any breach or condition of this Agreement
shall be deemed to be a waiver of any other or subsequent breach or condition, whether of a like or different nature. 
 SECTION 18.
NOTICE. 
 Any notice required or permitted under this Agreement shall be given in writing and shall be deemed
effectively given upon the earliest of personal delivery, receipt or the third full day following deposit in the United States Post Office with postage and fees prepaid, addressed to the other party hereto at the address last known or at such other
address as such party may designate by ten (10) days’ advance written notice to the other party hereto. 
 SECTION 19.
APPLICABLE LAW. 
 This Agreement will be interpreted and enforced under the laws of the State of California (without
regard to their choice-of-law provisions). 
 SECTION 20. NO ORAL MODIFICATION. 

Within the limitations of the Plan, the Board may modify this Award. The foregoing notwithstanding, no modification of this Award shall,
without your consent, materially impair your rights or increase your obligations under the Award. 
 SECTION 21. THE PLAN AND OTHER
AGREEMENTS. 
 The text of the Plan is incorporated in this Agreement by reference. Certain capitalized terms used in
this Agreement are defined in the Plan. This Agreement and the Plan constitute the entire understanding between you and the Company regarding this Award. Any prior agreements, commitments or negotiations concerning this Award are superseded.

 BY SIGNING THE COVER SHEET OF THIS AGREEMENT, 

YOU AGREE TO ALL OF THE TERMS AND CONDITIONS 
 DESCRIBED ABOVE AND IN THE PLAN.Standard Manufacturing Agreement

 Exhibit 10.24 
 Standard Manufacturing Agreement 
 FutureQuest Systems Confidential 

STANDARD MANUFACTURING AGREEMENT 
 FutureQuest Systems, California Company (“FQS”) whose principal place of business is located at 4416 Technology Drive, Fremont, California 94538 and Envivio, Inc. (“Customer”) whose
principal place of business is located at 400 Oyster Point Blvd., Suite 325, South San Francisco, California 94080 in their desire to formulate a strategic business relationship and to define their expectations regarding this relationship, hereby
agree as follows: 
  

	1.0	PRECEDENCE: 

1.1    Agreement is intended by FQS and Customer to operate as a basic set of operating conditions regarding their respective business
relationship. Product specific requirements along with specific business terms and conditions will be mutually agreed to and documented by an addendum to this Agreement. 
 1.2    It is the intent of the parties that this Agreement and its addenda shall prevail over the Standard Manufacturing Agreement previously entered into by the parties if applicable.
It is the intent of the parties that this Agreement and its addenda shall also prevail over the terms and conditions of any purchase order, acknowledgment form or other instrument. 
 1.3    This Agreement may be executed in one or more counterparts, each of which will be deemed the original, but all of which will constitute but one and the same document. The
parties agree this Agreement and its addenda may not be modified except in writing signed by both parties. 
  

	2.0	TERM 

 2.1    This Agreement
shall commence on the effective date: December 1, 2009 and shall continue for an initial term of one (1) year. This Agreement shall automatically be renewed for successive one (1) year increments unless either party requests in
writing, at least ninety (90) days prior to the anniversary date that this Agreement not be so renewed. 
  

	3.0	PRODUCT FORECAST 

3.1    Customer will provide monthly a three (3) month rolling Product forecast to FQS. However, the forecast is for information
only. It is not a commitment to buy the forecasted quantity. Customer’s commitment to buy will be based on PO issued by Customer. Customer shall not be liable for any information or omission provided by Customer in the forecasts. 

	4.0	MATERIAL PROCUREMENT 

4.1    FQS is authorized to purchase materials using standard purchasing practices including, but not limited to, acquisition of
material recognizing Economic Order Quantities, Envivio buy policy and long lead time component management in order to meet the forecasted requirements of Customer if FQS feels it is necessary to meet the delivery lead time commitment to Customer.
FQS shall purchase parts from only vendors on the Customer’s approved vendor list. Customer will provide an approved vendor list including Customer product number, manufacturer product number, description, sources, and price. 

Customer recognizes its financial responsibility for the custom material purchased by FQS on behalf of Customer. Customer is responsible
for material to the extent that (i) material was purchased by FQS to support the Product forecast and agreed upon safety stock (yet to be agreed); (ii) FQS exercised reasonable business judgment in managing suppliers and lead times;
(iii) FQS complied with Customer cancellation instructions in a timely manner (canceled all open orders within one (1) week of receiving instructions); and (iv) such materials cannot be used by FQS for other customers and at other
sites of FQS. 
 4.2    Customer may revise or cancel a purchase order for Product and may also eliminate a component from a
Product. If Customer revises or cancels a purchase order (“Order”), or eliminates a component causes excess inventory, FQS shall identify all potential liability of Customer for material on order, material on hand, work in process, and
finished goods. FQS shall undertake commercially reasonable efforts to cancel all applicable component purchase orders and reduce component inventory through return for credit programs or allocate components for alternate programs to minimize
charges to Customer. Customer agrees to compensate FQS for costs incurred for finished goods (including profit); work in process (including labor performed); material on hand which could not be returned or used for other customers and at other sites
of FQS; material on order which could not be canceled; applicable material supplier’s restocking or cancellation fees; and agreed FQS handling charges. 
 4.3    FQS will report its inventory position to Customer on a bi-weekly basis and at month’s end within three (3) business days, including the following data: quantity of
raw material, work in process and any open orders that cannot be canceled due to supplier lead time. Report will specifically identify any material on hand or on order where the quantity exceeds the agreed three (3) month forward looking
forecast plus safety stock. 
 4.4    FQS shall undertake reasonable efforts to cancel all applicable component purchase
orders and reduce component inventory through return for credit programs or allocate components for alternate programs if applicable. 

4.5    Customer shall be liable for FQS parts costs only up to an amount not to exceed the inventory agreed upon between the parties
in writing (“Agreed Inventory”) (yet to be agreed). FQS shall be solely liable for any inventory exceeding the “Agreed Inventory”. FQS shall minimize carrying cost by utilizing consigned and bonded inventory from suppliers. The
“Agreed Inventory” can be modified only with the written agreement of the Customer’s Chief Financial Officer. Customer may decrease the amount of the “Agreed Inventory” without penalty

 upon written notice to FQS provided that the revised “Agreed Inventory” is not less than the then
existing inventory held by FQS. 
 4.6    FQS shall provide Customer with an Inventory report on a bi-weekly basis and at
month’s end within three (3) business days. The report shall include Customer Product number, manufacturer product number, description, quantity, and location, price per piece, and total cost for each Product. 

4.7    FQS shall notify Customer immediately upon notification of end of life for any parts. FQS shall formally review parts life
with each manufacturer on a quarterly basis and provide the review results to Customer. 
  

	5.0	PURCHASE ORDERS AND PRICE REVIEWS 

5.1    Initial order placement will be an Order from Customer to FQS issued electronically with facsimile copy or email as backup.
Shipment of Product to Customer or Customer designated location worldwide from date of acceptance shall be three (3) weeks. FQS will provide notice to Customer of Order acceptance and scheduled shipment date within three (3) business days.

 5.2    Customer may issue specific Orders to FQS which will be identified as “high priority” at time of Order
placement. FQS’s on-time delivery performance of “high priority” Products will be taken into consideration by the parties during quarterly price reviews. 
 5.3    Customer may, without penalty, change the mix of Products requested within any forecast period provided that the Products incorporate only common components. FQS will use best
efforts to accommodate all such requests within material and capacity constraints. 
 5.4    If an Order has not yet been
accepted by FQS, Customer may, without penalty, delay such forecasted Product delivery beyond the scheduled delivery date by giving FQS written notice at least thirty (30) days prior such delivery date. In addition, Customer may, without
penalty, increase or decrease the total units of forecasted Products. 
 5.5    In the event Customer issues Orders in
excess of forecasts and agreed to safety stock, FQS will use commercially reasonable efforts to recover and replenish inventory levels. Expediting costs for such Orders will be agreed upon prior to Order placement. 

5.6    FQS and Customer will meet every three (3) months during the term of this Agreement to review safety stock levels,
pricing and to determine whether any price adjustment is required. For major components, the pricing review will take place monthly. 

5.7    FQS will provide pricing for average monthly volumes of 50 units. If volumes fall below 70% production rate of 50 units, FQS
and Customer agree to review the causes. If the volumes have dropped due to the end of Product life, FQS and Customer agree to develop their end-of-life support strategy. If the low volumes are only temporary, FQS and Customer will discuss what if
any fixed program costs are required to maintain the FQS team. FQS will attempt 

 
to minimize the fixed program costs by re-assigning personnel whenever possible. FQS will consider production volumes of comparable (within the same Product family) follow-on products when
calculating total monthly volumes realized. 
  

	6.0	TESTING AND ACCEPTANCE 

6.1    The Customer program quality requirements shall be in accordance with ISO-9000. Printed Circuit Board Assemblies
(“PCBA”) shall be fabricated with IPC Standard. Improvements/Defects will be prioritized and assigned appropriate resources by all parties. 
 6.2    Where a portion of payments to FQS is to be withheld pending final acceptance testing, Customer shall notify FQS of the date on which Customer shall be ready to commence such
tests as FQS shall have the right to participate in and observe the final acceptance testing. 
  

	7.0	DELIVERY 

 7.1    FQS will
use best efforts to target on time delivery based on monthly forecast provided by Customer, in no case later than thirty (30) calendar days from the date of the Order acceptance. Each configuration Order received from Customer will include the
date on which the Product is to be delivered to either Customer or their designated customer location. FQS agrees that time is of the essence in this Agreement and that any delays shall constitute a material breach of this Agreement. FQS agrees to
indemnify Customer against any and all damages suffered by Customer as a result of FQS’s delays in delivery. If FQS fails to meet any agreed delivery date, except for reasons of force majeure and without prejudice to any other rights Customer
may have under this Agreement or by law, FQS shall pay to Customer upon Customer’s request the minimum damages payment in the amount of one (1) percent of the purchase prices for the Products to be delivered pursuant to the delayed Order
per calendar day of delay, up to a maximum amount per delay event of twenty percent (20%) of such purchase prices. The payment of any of these amounts or parts thereof shall not discharge FQS of its obligations to supply the Products or of any
other liabilities or obligations under this Agreement and/or any Order. Unconditional acceptance or receipt of any delayed Products shall not preclude Customer from claiming any outstanding amounts specified above. In the event the delay exceeds
fifteen (15) days, Customer may, in addition to the foregoing rights, terminate the affected Order wholly or in part without incurring any charges or liability. Notwithstanding the foregoing, FQS is not responsible for delays solely caused by
delayed on the part of Customer’s designated or approved parts vendors if FQS notifies Customer of the unavailability of such parts within 7 days from the date of the Customer’s Order. An approved vendor is a parts vendor on
Customer’s list of approved vendors. A designated vendor is a vendor designated by Customer in its Bill of Materials issued by Customer. 
  

	7.2	The FOB point is ex factory. 

7.3    FQS and Customer shall agree to delivery schedule flexibility requirements specific to the Product as documented in the
addenda. 

 7.4    Upon learning of any potential delivery delays, FQS will notify Customer as to
the cause and extent of such delay. 
 7.5    If FQS fails to make deliveries at the specified time and such failure is
caused by FQS, FQS will, at no additional cost to Customer, employ accelerated measures such as material expediting fees, premium transportation costs, or labor overtime required to meet the specified delivery schedule or minimize the lateness of
deliveries. 
 7.6    Should Customer require FQS to undertake export activity on behalf of Customer, Customer agrees to
submit requested export information to FQS pursuant to FQS Guidelines for Customer-Driven Export Shipments as provided in the addenda. 

7.7    Customer and its customers shall inspect the Products within thirty (30) days after receipt and, whether or not Customer
conducts such inspection, Customer and its customers shall have the right to reject any non-conforming Product. Customer shall provide written notice to FQS setting forth full details of the reasons for rejection and if the Products are found to be
non-conforming, FQS shall pay for Customer and its customer’s cost incurred in returning the Product to FQS. 

7.8    FQS shall, at its sole expense, obtain any and all necessary governmental approvals and other authorizations and approval that
are appropriate or necessary to carry out the proposed activities contemplated in this Agreement. FQS shall obtain all necessary governmental and regulatory approvals to sell the Products to Customer. 

 

	8.0	PRICING AND PAYMENT TERMS 

8.1    Prices for Products shall be as set forth on the purchase orders placed with FQS from time to time. FQS shall not unilaterally
change the purchase price or suggested retail price for any Product without Customer’s prior written agreement. Product pricing shall be based upon the Bill of Materials. Parts pricing shall be based upon the most recent purchase of each item.
Any price change shall apply to Orders for the Products received by FQS after the effective date of such price changes. Unless otherwise specified, all prices are exclusive of taxes, levies and duties of any nature whatsoever applicable to the
Product purchased by Customer under this Agreement. 
 8.2    FQS and Customer agree to payment terms of Net 60 days from
the date of invoice. FQS shall invoice Customer upon shipment of the Products. 
  

	8.3	Currency will be in U.S. Dollars unless specifically negotiated and reflected in the addenda. 

 8.4    Until the purchase price and all other charges payable to FQS have been received in full, FQS retains and Customer grants to FQS a security interest in the products delivered to
Customer and any proceeds therefrom. 

	9.0	QUALITY 

 9.1    The Customer
program quality requirements shall be in accordance with IAW ISO 9000. Improvements will be prioritized and assigned appropriate resources by all parties. 
  

	9.2    FQS	program quality requirements shall be in accordance with IAW ISO 9000. 

 9.3    If the total unit of Products subject to repairs/replacement are returned by Customer’s customers in any calendar quarter exceed one percent (1%) of the total number
of units of Products shipped for such calendar quarter, FQS shall pay Customer a quality control fee equivalent to 6% of the price of the total Products shipped for that calendar quarter. Customer may deduct such amount against future payments to
FQS or at Customer’s request; FQS shall apply a credit to its invoices to Customer. FQS shall keep all records and provide to Customer a quarterly report reporting all of the defective Products returned and the causes for the defects within
five (5) business days from the end of each calendar quarter. FQS shall pay any quality control fee payable to Customer at the time it delivers such quarterly report to Customer. Notwithstanding the foregoing, FQS shall not be liable for
defects cause by parts from Customer’s approved or designated vendors. However, FQS shall be liable for defects arising from its workmanship in assembly, packing, and shipment. 

 

	10.0	ENGINEERING CHANGES 

10.1    Customer may, upon advance written notice to FQS, submit engineering changes for incorporation into the Product. It is
important that this notification include documentation of the change to effectively support an investigation of the impact of the engineering change. FQS will make a reasonable effort to review the engineering change and report to Customer with five
(5) business days. If any such change affects the price, delivery, or quality performance of said Product, an equitable adjustment will be negotiated between FQS and Customer prior to implementation of the change. 

10.2    FQS agrees not to undertake significant process changes, design changes, or process step discontinuance affecting electrical
performance and/or mechanical form and fit without prior written notification and concurrence of the Customer. 
  

	11.0	INVENTORY MANAGEMENT 

11.1    FQS agrees to purchase components according to the Customer approved vendor list (AVL) including any sourcing plans as
provided by the addenda. 
  

	11.2	All customer tooling/equipment furnished to FQS or paid for by Customer in connection with this Agreement shall: 

 

	 	a)	Be clearly marked and remain the personal property of Customer. 

	 	b)	Be kept free of liens and encumbrances 

	 	d)	Unless otherwise agreed, Customer is responsible for the general maintenance of Customer tooling/equipment. FQS shall notify Customer of any defects or required
maintenance or repairs. 

 FQS shall hold Customer property at FQS’ own risk and shall not modify the
property without the written permission of Customer. Upon Customer’s request, FQS shall redeliver the property to Customer in the same condition as originally received by FQS with the exception of reasonable wear and tear. In the event the
property is lost, damaged or destroyed, FQS’s liability for the property is limited to the replacement value of the property. 
  

	12.0	CONFIDENTIAL INFORMATION 

12.1    FQS and Customer agree to execute, as part of this Agreement, a Nondisclosure Agreement for the reciprocal protection of
confidential information. 
 12.2    Subject to the terms of the Nondisclosure Agreement and the proprietary rights of the
parties, FQS and Customer agree to exchange, at least semi-annually, relevant process development information and business plans to include market trends, process technologies, product requirements, new product developments, available capacity and
other information to support technology advancements by both FQS and Customer. 
  

	13.0	WARRANTY 

 13.1    FQS
warrants for a period of three (3) years from the date of manufacture of the Product, that (i) the Product will conform to the specifications applicable to such Product at the time of its manufacture, which are furnished in writing by
Customer and accepted by FQS (and respecting such acceptance by FQS, in the absence of FQS’ written rejection within 5 days of receipt of Product specifications from Customer, FQS shall be deemed to have accepted such specifications);
(ii) such Product will be of good material (supplied by FQS) and workmanship and free from defects for which FQS is responsible in the manufacture; (iii) such Product will be free and clear of all liens and encumbrances and that FQS will
convey good and marketable title to such Product. In the event that any Product manufactured shall not be in conformity with the foregoing warranties, FQS shall, at FQS’s expense, replace, repair or correct such Product, or if unable to
replace, repair, or correct within a time period that is reasonably acceptable to Customer, FQS shall credit Customer for any such nonconformity (not to exceed the purchase price paid by Customer for such Product). 

13.2    To return any defective Products to FQS, Customer shall request and obtain a Return Material Authorization number from
Customer’s Professional Services Department for each defective Product prior to return of the Product. FQS shall acknowledge receipt of a returned Product within 24 hours, using a standard process set up by Customer and including the RMA
Product information in a local RMA log maintained by FQS’ representative at the location processing the RMA (the “RMA Processor”) and distributed to Customer’s Production Department on a weekly basis. Any missing information
concerning the returned Product or obvious physical damage to it will be noted in FQS’ receipt acknowledgement and in the log. Within 72 hours of FQS’ receipt of the returned Product, the RMA Processor shall provide

 
information concerning FQS’ diagnosis of the defect, to be followed by a full failure analysis within 24 hours of completion of the Product’s repair. FQS agrees to debug and repair or
replace defective Product within ten (10) days of its receipt at FQS’s factory, the repaired or replaced Product shall be shipped to Customer or Customer’s customer within such 10 day period, provided however if FQS is unable to meet
this timetable due to the unavailability of a component, FQS shall note the delay and its cause in the RMA log. FQS will make all commercially reasonable efforts to procure any necessary materials as quickly as possible. Customer’s customers
shall pay the transportation charges for returning the defective Product to FQS. Customer shall pay for the transportation charges for returning the repaired or replaced Product to Customer’s customers. The warranty on repaired or replaced
items shall be the same as the original warranty period. FQS shall perform a failure analysis of all returned Product. 

13.3    FQS shall have no responsibility or obligation to Customer under warranty claims with respect to Products that have been
subjected to abuse, misuse, accident, alteration, neglect or unauthorized repair. 
 13.4    THE WARRANTIES CONTAINED IN
THIS SECTION ARE IN LIEU OF, AND FQS EXPRESSLY DISCLAIMS AND CUSTOMER WAIVES ALL OTHER REPRESENTATIONS AND WARRANTIES, EXPRESS, IMPLIED, STATUTORY OR ARISING BY COURSE OF DEALING OR PERFORMANCE, CUSTOM, USAGE IN THE TRADE OR OTHERWISE, INCLUDING
WITHOUT LIMITATION THE IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR USE. 
 13.5    FQS shall have no
liability or responsibility under Sections above for any losses or damages to the extent that any such Epidemic Failure claims are the result of: 
  

	 	a)	FQS’s compliance with Customer specifications; 

	 	b)	the negligence of Customer or any other person providing goods or services in connection with the design, development, production, and distribution of the Product (with
the exception of FQS manufacture of the Product); 

	 	c)	modification or alteration of the Product by a party other than FQS (with the exception of party hired by FQS, under the control of FQS, or is an agent of FQS);

	 	d)	defects in Customer’s products or components thereof (with the exception of the Products and FQS supplied components thereof). 

 

	14.0	TERMINATION 

 14.1    If
either party fails to meet any one or more of the terms and conditions as stated in either this Agreement or the addenda, FQS and Customer agree to negotiate in good faith to resolve such default. If the defaulting party fails to cure such default
or submit an acceptable written plan to resolve such default within thirty (30) days following notice of default, the non-defaulting party shall have the right to terminate this Agreement by furnishing the defaulting party with thirty
(30) days written notice of termination. 
 14.2    This Agreement shall immediately terminate should either party;
(i) become insolvent; (ii) enter into or file a petition, arraignment or proceeding seeking an order for relief under the 

 bankruptcy laws of its respective jurisdiction; (iii) enter into a receivership of any of its assets
or; (iv) enter into a dissolution of liquidation of its assets or an assignment for the benefit of its creditors. 

14.3    Either FQS or Customer may terminate this Agreement without cause by giving one hundred and twenty (120) days advance
written notice to the other party. If FQS terminates this Agreement, FQS shall provide sufficient time to Customer to find an alternative service provider. 
 14.4    Upon termination, FQS shall remain obligated to deliver Products ordered by Customer prior to termination and still required by Customer and Customer shall be obligated to pay
for all Products ordered under the terms of this Agreement. Upon termination, FQS shall return all Customer furnished tools and any other material provided by or owned by Customer. FQS and Customer shall agree on a transition plan to address all
inventories of raw materials and components in inventory at FQS; provided that such raw materials are not common components that can be used in the manufacturing of other products for other FQS customers. 

 

	15.0	DISPUTE RESOLUTION 

15.1    In the spirit of continued cooperation, the parties intend to and hereby establish the following dispute resolution procedure
to be utilized in the unlikely event any controversy should arise out of or concerning the performance of this Agreement. 

15.2    It is the intent of the parties that any dispute be resolved informally and promptly through good faith negotiation between
FQS and Customer. Either party may initiate negotiation proceedings by written notice to the other party setting forth the particulars of the dispute. The parties agree to meet in good faith to jointly define the scope and a method to remedy the
dispute. If these proceedings are not productive of a resolution, then senior management of FQS and Customer are authorized to and will meet personally to confer in a bona fide attempt to resolve the matter. 

15.3    If the parties are unable to settle the dispute within thirty (30) days from the date one party notifies the other of
the dispute in accordance to Section 15.2 above, then either party may initiate final and binding arbitration with the American Arbitration Association (“AAA”) under AAA’s Commercial Arbitration Rules then in effect by one
(1) arbitrator appointed in accordance with the said rules. All arbitration proceedings shall be conducted in the English language in San Francisco, California, U.S.A. Notwithstanding anything to the contrary, either party may seek injunctive
relief from any court with jurisdiction over such matters and the parties involved to the extent necessary and/or appropriate to protect confidential information and/or other intellectual property from irreparable harm arising out of any actual or
threatened breach of this Agreement. 
  

	16.0	LIMITATION OF LIABILITY 

 IN NO
EVENT, WHETHER AS A RESULT OF BREACH OF CONTRACT, WARRANTY, OR TORT (INCLUDING NEGLIGENCE), STRICT LIABILITY, PRODUCT LIABILITY, OR OTHERWISE, SHALL EITHER PARTY BE LIABLE TO THE OTHER FOR 

 
ANY SPECIAL, INCIDENTAL, CONSEQUENTIAL, EXEMPLARY DAMAGES OF ANY KIND WHETHER OR NOT EITHER PARTY WAS ADVISED OF THE POSSIBILITY OF SUCH DAMAGE. 

 

	17.0	PATENT, COPYRIGHT AND TRADEMARK INDEMNITY 

17.1    Each party (the “indemnifying party”) shall defend, indemnify, and hold harmless the other party from any claims by
a third party of infringement of intellectual properties resulting from the acts of the indemnifying party pursuant to this Agreement, and FQS shall defend, indemnify, and hold harmless Customer from any claims by a third party arising due to
FQS’ breach of any of its warranty obligations contained in Section 13.1, provided that the other party (i) gives the indemnifying party prompt notice of any such claims, (ii) renders reasonable assistance to the indemnifying
party thereon, and (iii) permits the indemnifying party to direct the defense of the settlement of such claims. Notwithstanding the foregoing, the indemnifying party shall not be liable for any claim resulting from the other party’s:
(i) unauthorized alteration, modification, or repair of the Product (ii) use of any component of the Product outside of such Product; and (iii) use beyond the normal usage for the Product. 

 

	18.0	INTELLECTUAL PROPERTY RIGHTS AND LICENSE 

18.1    Unless supplied or funded by Customer, specifications, test and manufacturing technology developed by FQS for the purpose of
providing Product to Customer under the terms of this Agreement are the sole and exclusive property of FQS, and Customer will have no rights with respect thereto unless otherwise agreed to in writing by the parties. 

18.2    All Product designs and all intellectual property rights relating to the Product provided by Customer and modifications
thereof are the sole and exclusive property of Customer. 
 18.3    Customer shall provide FQS with all Customer software or
firmware required for the manufacturing of the Products in machine-readable object code form (“Customer Software”). Customer hereby grants to FQS a worldwide, non-exclusive, non-transferable, restricted license during the Term of this
Agreement to (i) incorporate Customer Software in the Product, in machine-readable object code form, and (ii) copy the Customer Software in conjunction with its manufacturing of the Products under the terms of this Agreement. Customer
shall provide to FQS one master copy of the Customer Software, in machine readable object code form, solely for Licensee’s use pursuant to this Agreement. 
 18.4    FQS is granted a worldwide, non-exclusive, non-transferable, restricted license to use, reproduce, modify, translate, enhance, or adapt any documentation related to the
Products provided by Customer (“Documentation”) in connection with the exercise of the licenses granted in Section 18.3. 

18.5    FQS shall: (i) adopt and enforce such internal policies, procedures and monitoring mechanisms as are necessary to ensure
that the Customer Software and Documentation are used only in accordance with the terms of Section 18; and (ii) take all steps necessary to ensure that no person or entity will have unauthorized access to the Customer Software and
Documentation. 

 
FQS shall not assign, sublicense, lease, encumber or otherwise transfer or attempt to transfer the Customer Software or any portion thereof, other than in accordance with this Agreement. FQS
shall not modify, translate, reverse engineer, decompile or disassemble the Customer Software. 
 18.6    Customer hereby
grants FQS a royalty-free, nontransferable, nonexclusive, revocable license under Customer’s trademarks during the Term of this Agreement solely for the purpose of fulfilling FQS’s obligations hereunder. Except as set forth in this
Section, nothing in this Agreement shall grant or shall be deemed to grant to FQS any right, title or interest in or to Customer’s trademarks. All uses of Customer’s trademarks shall inure to the benefit of Customer. At no time during the
term of this Agreement shall FQS challenge or assist others to challenge the trademarks of Customer (except to the extent such restriction is prohibited by applicable law) or the registration thereof or attempt to register any trademarks, marks or
trade names confusingly similar to those of Customer. FQS will not remove, obscure, or alter Customer’s copyright notice, trademarks, or other proprietary rights notices affixed to or contained within any Products. 

18.7    “MPEG Consortium” shall mean the (i) MPEG LA (the MPEG Licensing Authority), (ii) Via Licensing and
(iii) individuals or companies under the MPEG LA or Via Licensing with valid patent claims relevant to the MPEG-4 video and audio standards incorporated into the Products. Customer represents and warrants that (i) the Product is licensed
under patents from the MPEG Consortium; (ii) Customer has a valid right to license the Product from the MPEG Consortium as a manufacturer of the Product, and (iii) but for this license such patents (if valid and in force) are necessarily
and unavoidably infringed by the execution of the inherent functionality of the Product. The MPEG Consortium assesses certain patent royalties on the direct or indirect buyer of the Product from Customer, which are payable by such buyer or its end
user customers. Customer makes no representation, warranty or indemnity with respect to and shall not be liable for any patent infringement claims brought against Buyer by third parties based on obligation to pay patent royalties for the sale of
Products or operation of services utilizing MPEG-4 Visual and MPEG-4 AVC technologies. THE TERMS OF THIS SECTION SHALL PREEMPT AND CONTROL ANY CONTRARY TERMS PROVIDED UNDER ANY SECTIONS OF THIS AGREEMENT, INCLUDING BUT NOT LIMITED TO SECTIONS
PERTAINING TO LICENSE FEES, INTELLECTUAL PROPERTY OWNERSHIP, WARRANTY, AND INDEMNITY. 
 THIS PRODUCT IS LICENSED UNDER THE MPEG-4 VISUAL PATENT
PORTFOLIO LICENSE AND THE AVC PATENT PORTFOLIO LICENSE FOR THE PERSONAL AND NON-COMMERCIAL USE OF A CONSUMER FOR (I) ENCODING VIDEO IN COMPLIANCE WITH THE MPEG-4 VISUAL STANDARD (“MPEG-4 VIDEO”) AND THE AVC STANDARD (“AVC
VIDEO”) AND/OR (II) DECODING MPEG-4 VIDEO AND AVC VIDEO THAT WAS ENCODED BY A CONSUMER ENGAGED IN A PERSONAL AND NON-COMMERCIAL ACTIVITY AND/OR WAS OBTAINED FROM A VIDEO PROVIDER LICENSED BY MPEG LA TO PROVIDE MPEG-4 VIDEO AND AVC VIDEO. NO
LICENSE IS GRANTED OR SHALL BE IMPLIED FOR ANY OTHER USE. ADDITIONAL INFORMATION INCLUDING THAT RELATING TO THE PROMOTIONAL, INTERNAL AND COMMERCIAL USES AND LICENSING MAY BE OBTAINED FROM MPEG LA, LLC. SEE HTTP://WWW.MPEGLA.COM. 

 18.9    Survival of Ownership Rights. This Section 18 shall survive any termination
or expiration of this Agreement. 
  

	19.0	RECORDS AND AUDIT RIGHTS 

19.1    During the Term of this Agreement and for two (2) years from its termination or expiration, FQS agrees to keep all usual
and proper records and books of account and all usual and proper entries relating to each Product manufactured hereunder. FQS’s records and books of account shall be kept in accordance with GAAP. 

19.2    In order to verify reports issued by FQS and FQS’s compliance with the terms of this Agreement, Customer may cause
(i) an audit to be made of FQS’s books and records and/or (ii) an inspection to be made of FQS’s facilities and procedures. Any audit or inspection shall be conducted during regular business hours at FQS’s facilities, upon
reasonable notice to FQS. Any audit shall be conducted by an independent certified public accountant selected by Customer. 

19.3    FQS agrees to provide Customer’s designated audit or inspection team access to the FQS records relating to the sale and
distribution of the Products under this Agreement and facilities to make copies of such records. 
 19.4    Prompt
adjustment shall be made to compensate for any errors or omissions disclosed by such audit and/or inspection. Any such audit or inspection shall be paid for by Customer unless material discrepancies are disclosed through such audit or inspection.
“Material” shall mean the lesser of Five Thousand Dollars (U.S. $5,000.00) or five percent (5%) of the amount that was reported. If material discrepancies are disclosed, FQS agrees to pay Customer for the costs associated with the
audit and/or inspection. In no event shall audits or inspections be made more frequently than semi-annually unless the immediately preceding audit or inspections disclosed a material discrepancy. 

 

	20.0	GENERAL 

 20.1    Each party
to this Agreement will maintain insurance to protect itself from claims (i) by the party’s employees, agents and subcontractors under Worker’s Compensation and Disability Acts, (ii) for damages because of injury to or destruction
of tangible property resulting out of any negligent act, omission or willful misconduct of the party or the party’s employees or subcontractors, (iii) for damages because of bodily injury, sickness, disease or death of its employees or any
other person arising out of any negligent act, omission, or willful misconduct of the party or the party’s employees, agents or subcontractors. 
 20.2    FTQ shall not delegate, assign or transfer its rights or obligations under this agreement, whether in whole or part, without the written consent of Customer. 

20.3    Neither party shall be liable for any failure or delay in its performance under this Agreement due to acts of God, acts of
civil or military authority, fires, floods, earthquakes, riots, wars or any other cause beyond the reasonable control of the delayed party provided that the 

 
delayed party: (i) gives the other party written notice of such cause within fifteen (15) days of the discovery of the event; and (ii) uses its reasonable efforts to remedy such
delay in its performance. The other party may at its option following written notice to the delayed party terminate this Agreement if such delay extends for more than 30 days. 
 20.4    This Agreement shall be governed by, and construed in accordance with the laws of the State of California, excluding its conflict of laws provisions. In any action to enforce
this Agreement, the prevailing party shall be awarded all court costs and reasonable attorney fees incurred. 
 20.5    The
parties understand and agree that each party is an independent contractor in the performance of each and every part of this Agreement and is solely responsible for all of its employees and agents and its labor costs and expenses arising in
connection therewith. Neither party (nor any agent or employee of that party) is the representative of the other party for any purpose and neither party has the power or authority as agent, employee or in any other capacity to represent, act for,
bind or otherwise create or assume any obligation on behalf of the other party for any purpose whatsoever. Neither execution nor performance of this Agreement shall be construed to have established any agency, joint venture or partnership
relationship between the parties. Except as otherwise specifically provided herein, neither party has the right or authority to control the manner or means by which the other party performs its obligations hereunder. 

20.6    Any notices required or permitted hereunder shall be in writing, shall be effective when given, and shall in any event be
deemed to be given upon receipt or, if earlier, (a) upon delivery, if delivered by hand, (b) upon delivery, if transmitted by facsimile (confirmed by letter sent by first class mail), (c) one business day following the business day of
deposit with an overnight courier, freight prepaid, or (d) five (5) days after deposit with the U.S. Postal Service or other applicable postal service, if delivered by prepaid first class mail, to the party at the address set forth on the
first page of this Agreement, or such other address as a party may specify by notice pursuant to this Section 20.6. 

20.7    If any provision of this Agreement is held by a court of competent jurisdiction to be invalid, illegal or unenforceable in
any respect, (a) such provision shall be fully severed herefrom and the remainder of the Agreement shall remain in full force and effect and (b) in lieu of such provision, the parties agree to add to this Agreement a valid, legal and
enforceable provision as similar in terms to such invalid, illegal or unenforceable provision as may be possible. 

20.8    No delay or omission by either party hereto to exercise any right, power or remedy occurring upon any noncompliance or
default by the other party with respect to any of the terms of this Agreement shall impair any such right, power or remedy or be construed to be a waiver thereof. A waiver by either of the parties hereto of any of the covenants, conditions, or
agreements to be performed by the other shall not be construed to be a waiver of any succeeding breach thereof or of any covenant, condition, or agreement herein contained. Unless stated otherwise, all remedies provided for in this Agreement shall
be cumulative and in addition to and not in lieu of any other remedies available to either party at law, in equity, or otherwise. No waiver of a breach on one occasion shall be deemed a waiver on another occasion. 

 20.9    This Agreement and the exhibits attached hereto constitute the entire and
complete agreement between the parties regarding the subject matter hereof and thereof and supersede all prior or contemporaneous agreements, understandings, negotiations, proposals and representations by the parties with respect to such subject
matter. No change, modification, amendment, waiver or discharge hereof shall be valid unless it is in writing and is executed by both parties. 

20.10    Any provision of this Agreement having its performance period beyond the term of this Agreement shall survive the
termination or expiration of this Agreement. 
  

							
	 Agreed:
	    		  	
	 FQS
	    	Customer:
	 By:
	  	 	    	By:	  	 
	 Name:
	  	 	    	Name:	  	 
	 Title:
	  	 	    	Title:	  	 
	 Date:
	  	 	    	Date:

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