Purchase Agreement - FLASH Electronics Inc. and NetScreen Technologies Inc.
Purchase Agreement
Between
FLASH Electronics Inc.
And
NetScreen Technologies, Inc.
This purchase agreement is entered into effective as of May 13, 1998 by
FLASH Electronics Inc. located at 4050 Starboard Drive, Fremont, California and
4699 Old Ironsides, Santa Clara, California.
This agreement is intended to define the basic business agreement between
the parties. Additional details may defined in subsequent Purchase Order
agreements.
FLASH Electronics will provide custom manufacturing services to NetScreen
Technologies, Inc. These services will included purchasing components, material
management (turnkey or partial turnkey), assembly of printed circuit boards,
final electronic equipment, testing, trouble shooting, and rework.
PURCHASE OF PRODUCTS
In order for FLASH to purchase material for NetScreen Technologies, Inc.,
it is understood that NetScreen Technologies, Inc. will be liable for the costs
of the material and plus fair material margin. Details of the amount of
inventory may be defined on the purchase order or other written agreement. In
lieu of a more detailed agreement, FLASH will contract for materials and
services in behalf of NetScreen Technologies, Inc. in a reasonable and
responsible manner. Flash will purchase *****. FLASH will buy *****.
INVOICING AND PAYMENT
Subject to acceptance of Products and parts, invoices shall be due and
payable thirty (30) days after the date of actual receipt of the products or
parts. Any other applicable discounts or price reductions shall be referenced on
the invoice. Payments past *****days are subject to ***** finance charge.
CANCELLATIONS
In the event that NetScreen Technologies, Inc. terminates a purchase order
either actually or constructively (i.e. engineering change resulting in
obsolescence.), NetScreen Technologies, Inc. liability, in addition to unique
components, shall include all excess or obsolete safety stock as well as long
lead-time materials procured pursuant to the product (orders) forecasts if these
items are non-cancelable and non-returnable. Also included are restocking
charges or other penalties required by component vendor. NetScreen Technologies,
Inc. will also be liable for all work in process. The products in process and
excess components will be shipped upon receipt of notice of cancellation.
***** Confidential treatment has been requested for portions of this exhibit.
The copy filed herewith omits the information subject to the
confidentiality request. Omissions are designated as *****. A complete
version of this exhibit has been filed with the Securities and Exchange
Commission.
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Page 2
Flash Purchase Agreement
FREIGHT AND SHIPPING CONTAINERS
Flash will follow NetScreen Technologies, Inc. instructions on selection of
freight carrier and use of priority services. Flash will also follow NetScreen
Technologies, Inc. direction on the type of shipping containers. Shipments will
be FOB Fremont and billed to NetScreen Technologies, Inc. account if other than
local delivery. Flash will provide local pick up and delivery via our company
truck at no additional charge.
TERMINATION OF THIS CONTRACT
Either party may terminate this agreement, at will, without cause, by
written notice given to the other party not less than 30 days prior to the
effective date of such termination. The termination of this agreement shall in
no way relieve either party of any sums that have accrued prior to such
termination.
By: /s/ Charles Shao By: /s/ Illegible
--------------------------- -----------------------------------
Printed name: Charles Shao Printed name: Illegible
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Title: Operations Director Title: Illegible
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Date: May 13, 1998 Date: Illegible
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