Pricing and Terms Agreement - Quantum Corp. and Quantum Snap Division Corp.
June 30, 2000
Mr. Anders Axelsson
Quantum Snap Division Corporation
2001 Logic Drive
San Jose, CA 95124
Dear Anders,
This letter will outline Quantum Corporation's Hard Disk Drive Group position on
pricing and terms to the Quantum Snap Division Corporation, relative to the
purchase of Quantum hard drive products.
The Snap Division is recognized as a strategic partner and industry leader in
the fast growing network attached storage (NAS) segment. As such, Quantum HDD
will provide Snap with best-in-class pricing, consistent with our strategy to
promote and participate in the success of new technologies, which leverage our
products. Disk drive pricing to Snap will be based on a 2% uplift over our most
favorable OEM pricing, and will be adjusted quarterly.
Additionally, Quantum HDD will commit to assurance of supply based on a six
month forward looking forecast with a 50% upside flexibility provision.
Additional upside requests will be made on a best effort basis.
The term of this agreement shall remain in effect for a minimum of two years
from the date signed.
Quantum HDD looks forward to a mutually beneficial relationship as the market
opportunity for NAS explodes. We are enthusiastic about the prospects for
growth and look forward to being an integral part of Snap's success.
Best Regards,
/s/ THOMAS SCOTT
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Thomas Scott
Executive Vice President, Sales and Marketing
Quantum Corporation
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Accepted By,
/s/ THOMAS SCOTT
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Thomas Scott
Executive Vice President, Sales and Marketing
Quantum Corporation
/s/ ANDERS AXELSSON
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Anders Axelsson
General Manager
Quantum Snap Division Corporation