Item 1.01 Entry into a Material Definitive Agreement

On May 30, 2008, 3PAR Inc. ("3PAR") entered into an Amended and Restated Loan and Security Agreement with Silicon Valley Bank (the "Agreement"), which superseded the Loan and Security Agreement dated as of June 30, 2005 between the parties. The Agreement provides for a revolving line of credit, under which the aggregate amount available for borrowing is $15.0 million. The borrowings are secured by all of 3PAR's assets with the exception of intellectual property. The Agreement terminates on May 29, 2009, and contains a financial covenant that requires 3PAR to maintain a minimum tangible net worth of $70.0 million, which is increased by 50% of any new net equity proceeds and/or 50% of quarterly profits. There have been no borrowings under the new revolving line of credit.

The foregoing description of the Agreement is qualified in its entirety by reference to the full text of the Agreement, a copy of which will be filed as an exhibit to 3PAR's Annual Report on Form 10-K for the fiscal year ended March 31, 2008.

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