|EXHIBIT
10.11


INTERNATIONAL
DISTRIBUTOR AGREEMENT


Agreement made this 24th
day of April, 2001 (Effective Date) by and between Castelle, Inc., a
California corporation having its principal place of business located at 855
Jarvis Drive, Suite 100,, Morgan Hill, California 95037, U.S.A. (hereinafter
referred to as Castelle), and AMS, Ltd., having its principal place
of business located at Bournemouth, England (hereinafter referred to as
Distributor).
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|1. |  | APPOINTMENT
OF DISTRIBUTOR AND TERRITORY
|-- |  | ----------------------------------------

| |  | 1.1 |  | Purpose.
The purpose of this Agreement is to appoint a Distributor to promote the sale of
Castelles Products set forth in Exhibit A in the Territory.
| |  | --- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | 1.2 |  | Appointment.
Subject to the terms and conditions set forth herein, Castelle
hereby appoints Distributor as Castelles non-exclusive, authorized
distributor for the Products in the Territory during the term of this Agreement,
and Distributor hereby accepts such appointment.
| |  | --- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | 1.3 |  | Territory.
The Distributor's Territory shall be the United Kingdom.
| |  | --- |  | -------------------------------------------------------------------

| |  | 1.4 |  | Territorial Responsibility.
Distributor will pursue aggressive sales policies
and procedures to realize maximum sales potential for the Products in the
Territory. Distributor will maintain sufficient inventory of the Products to
provide competitive delivery schedules to its customers.
| |  | --- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|2. |  | TERM
OF AGREEMENT
|-- |  | -----------------

| |  | 2.1 |  | Initial Term.
This Agreement shall become effective on the Effective Date set
forth above and shall continue for an initiaL term of one (1) year subject to
the terms and conditions set forth herein.
| |  | --- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | 2.2 |  | Effective Date.
The Effective Date of this Agreement shall be the date it is signed as accepted by
a duly authorized officer of Castelle.
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| |  | 2.3 |  | Renewal of Agreement.
This Agreement shall thereafter be renewed for successive
periods of one year unless terminated by either party by notice, in writing,
addressed to the other party, no less than 3 months prior to the expiration of
the term, and no more than six (6) months prior to the expiration of the initial
term.
| |  | --- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|3. |  | PRICING
|-- |  | -------

| |  | 3.1 |  | Distributor's Prices.
Subject to adjustments described herein, Distributor's prices for Products shall
be based upon a percentage of the U.S. Suggested List Price attached hereto as Exhibit A.
Castelle prices to Distributor shall not be greater than Castelle's prices to any other
U.K. Distributor for the term of this Agreement. All prices are stated in U.S. dollars,
F.O.B. Castelle, Morgan Hill, California, U.S.A.
| |  | --- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | 3.2 |  | Minimum Purchase Commitment.
The Minimum Purchase Commitment, set forth in
Exhibit B, shall be the total purchase price, net of taxes, duties,
transportation and other charges, which Distributor has committed to purchase
each Time Period defined in Exhibit B of this Agreement. In the event
Distributor fails to meet the Minimum Purchase Commitment for any Time Period
and/or the total annual commitment, Castelle may, at its sole option, ipso jure
and without notice, eitheR (i) upon  thirty (30) days prior  written
notice,  increase  the base price to Distributor or (ii) terminate this Agreement.
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| |  | 3.3 |  | Price Adjustments.
Castelle may change its prices set forth on Exhibit A
attached hereto at any time, provided that no such price increase shall be
effective until thirty (30) days after notice by Castelle to Distributor of such
change. Price decreases may be effective immediately on the date of notification
by Castelle. Price increases will not be applied to Product that does not ship
within the thirty (30) day notice period as a result of any delays caused by
Castelle. In addition, Castelle reserves the right to adjust Distributors
prices in the event that Distributor fails to meet the Purchase Commitments set
forth in Exhibit B. All price adjustments shall apply to Products ordered, but
not shipped, after the effective date of such change.
| |  | --- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | 3.4 |  | Price Protection.
In the event Castelle should lower its Product prices to Distributor,
Castelle will grant Distributor a price protection credit to be applied against future
orders equal to Distributor's net unit price difference between the higher and lower
price on all new, unsold eligible Products in Distributor's inventory that Castelle has
shipped to Distributor within ninety (90) days before the effective date of the price
reduction.
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| |  | 3.5 |  | Product List Price in Distributor's Territory.
Castelle and Distributor agree that it is in both
parties best interests that the end user purchaser's prices for the Products quoted by
the Distributor, or Distributor's resellers, in the Territory be competitive to motivate
and promote purchases by end users of Castelle Products. Castelle has provided
Distributor with Castelle's U.S. Suggested List Price for Castelle Products in Exhibit A.
Distributor shall exercise its best efforts to quote and promote Castelle's Suggested
List Price in the currency of the Territory.
| |  | --- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

## 4. ORDERS

| |  | 4.1 |  | Purchase Orders.
Distributor shall purchase all Products hereunder by issuing
written Purchase Orders to Castelle not less than thirty (30) days prior to
Distributors requested ship date identifying the Products to be purchased,
the quantity, price, total Purchase Order price, shipping instructions,
requested ship dates and any other special information. Distributor may place
additional interim Purchase Orders at any time and with no notice requirement as
the market demand may from time to time require. Castelle will use its best
efforts to comply with Distributors Product shipment requirements for any
orders submitted with short notice delivery requirements.
| |  | --- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | 4.2 |  | Acceptance of Purchase Orders.
Castelle, at its place of business in the U.S.A.,
or at any other place Castelle may select, may, at Castelles option,
accept or reject Distributors Purchase Order within ten (10) days of
Castelles receipt thereof. Castelle shall accept all Purchase Orders that
are issued in conformance with the provisions of this Agreement. Acceptance of
Purchase Orders shall be confirmed to Distributor by first class mail, telex or
confirmed telefax.
| |  | --- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | 4.3 |  | Terms of Purchase Orders.
Distributors Purchase Orders submitted to
Castelle from time to time with respect to Products to be purchased hereunder
shall be governed by the terms and conditions of this Agreement, and
notwithstanding the content of Distributors Purchase Order, this Agreement
shall take precedence over such Purchase Orders, and any conflicting,
inconsistent, or additional terms of Distributors Purchase Order shall be
null and void, and are hereby waived by Distributor.
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| |  | 4.4 |  | Order Deferral, Cancellation and Modification.
Distributor may, by prior written
notice to Castelle, defer and/or cancel delivery of a Purchase Order once
without penalty, provided such notice is received by Castelle not less than ten
(10) business days prior to the scheduled ship date for order cancellation and
five (5) business days prior to the scheduled ship date for order deferrals.
Distributor may not cancel or defer orders placed for immediate shipment.
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|5. |  | DISTRIBUTOR
REPORTS, FORECASTS AND MINIMUM INVENTORY
|-- |  | ----------------------------------------------------

| |  | 5.1 |  | Reports and Forecasts.
Distributor shall submit to Castelle a three (3) month
rolling forecast five (5) days before the end of each calendar month. In
addition, Distributor shall within ten (10) days after the end of each calendar
month submit a written or electronic report to Castelle setting forth the
previous months sales unit volume and current inventory by Product model.
Failure to provide monthly sales unit volume and current inventory by Product
model reports may forfeit the Distributors right to claim price protection
credit (reference section 3.4). Distributor shall within ten (10) days after the
end of each quarter submit a written or electronic report to Castelle setting
forth the previous quarters Named POS (point of sale) showing product
sales, services and support contracts to specific resellers, electronic
catalogs, retailers, system integrators, end users, etc.
| |  | --- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | 5.2 |  | Inventory.
Distributor shall, at all times, maintain minimum inventory levels of
each Castelle Product sold by Distributor, sufficient to satisfy
Distributors order demands, and shall use its best efforts to always have
Castelle inventory on hand. Distributor shall maintain sufficient minimum
inventory levels of each Castelle Product to satisfy the demands of the
Territory.
| |  | --- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|6. |  | PACKAGING,
SHIPMENT, RISK OF LOSS AND ACCEPTANCE OF ORDERS
|-- |  | ----------------------------------------------------------

| |  | 6.1 |  | Packaging.
All Products delivered pursuant to the terms of this Agreement shall
be suitably packaged for shipment in Castelles standard shipping cartons,
marked for shipment to Distributors address, and delivered to Distributor
or its carrier agent. In the absence of shipping instructions from Distributor,
Castelle shall ship via air freight and shall select the carrier.
| |  | --- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | 6.2 |  | Ship Dates.
Shipping dates committed by Castelle require prompt receipt of all
necessary documents from Distributor. Where existing priorities and schedules
prevent strict compliance with requested ship dates, Purchase Orders will be
scheduled as close as is practical to the requested ship date.
| |  | --- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | 6.3 |  | Shipment Terms.
Shipments from Castelle shall be made Ex Works, Castelles
manufacturing plant, freight, duties and taxes collect, to distributors
address set forth on Distributors Purchase Orders. Distributors who do not
have pre-approved credit shall pay shipping charges in advance of shipment. In
no event shall Castelle have any liability in connection with shipment, nor
shall the carrier be deemed to be an agent of Castelle. Castelle shall not be
liable for damages or penalty for delay in delivery or for failure to give
notice of any delay.
| |  | --- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | 6.4 |  | Title and Risk of Loss.
Risk of loss with respect to Products and Software shall pass from Castelle to Distributor
upon delivery. Delivery shall be deemed made upon transfer of possession to the initial
common carrier or Distributors representative at Castelles manufacturing
plant. Transfer of ownership and title to the Products and Software shall pass from
Castelle to Distributor only after payment in full by Distributor for the Products and
Software ordered by Distributor and shipped by Castelle.
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| |  | 6.5 |  | Acceptance.
Distributor shall inspect all Products promptly upon receipt thereof
at the ship-to location and may reject any Product that is defective. Any
Product not properly rejected by Distributor shall be deemed accepted. To reject
a Product, Distributor shall notify Castelle of its rejection, by telefax,
within ten (10) days of receipt of the shipment, and request a Return Material
Authorization (RMA) number. Distributor shall return the rejected
Product(s), freight collect, in its original shipping carton with the RMA number
displayed on the outside of the carton. Castelle may refuse to accept any
Product that does not bear a valid RMA number on the carton. Rejected Product(s)
must be shipped to arrive at Castelle no later than 60 days after the issuance
of the RMA number; the RMA number will no longer be valid after that time.
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|7. |  | PAYMENT
|-- |  | -------

| |  | 7.1 |  | Products.
Payment by Distributor for all Products hereunder shall be by
Telephone Transfer (TT) for payment in the United States to Castelle
at a bank approved by Castelle.
| |  | --- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | 7.2 |  | Distributor Credit and Payment Terms.
Distributor shall complete Castelles
Credit Application and apply for credit. Payment terms shall be net thirty (30)
days. In the event that Distributors account is past due, Castelle may,
ipso jure and without notice, charge and distributor shall pay a finance charge
equal to one and one-half percent (1 1/2%) per month, or the maximum amount
allowed by law, whichever is less, upon the unpaid balance, until the date of
payment, provided, however, that no such finance charge shall be assessed on any
invoice disputed in good faith by Distributor and for which Distributor has
notified Castelle by confirmed telefax within ten (10) days of receipt of
invoice. Distributor shall pay all of Castelles costs and expenses
(including reasonable attorneys fees) incurred in enforcing
Castelles right under this Section 7.
| |  | --- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | 7.3 |  | Taxes and Duties.
The prices stated are exclusive of Taxes and Duties. Any Taxes
and Duties related to this Agreement shall be paid by distributor (other than a
tax measured by Castelles net income) or in lieu thereof, Distributor
shall provide an exemption certificate acceptable to the local taxing
authorities. All Taxes and Duties shall be billed as a separate item on the
invoice.
| |  | --- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | 7.4 |  | Withholding.
In the event that any Government in the Territory shall require the
withholding of any sums, however designated, which may be payable hereunder,
there shall be added to amounts due the amount of such withholding, so that
Castelle shall receive from Distributor the same and equal amount as it would
have received without such withholding. No such withholding as described above
shall become due as a result of actions taken by Castelle except as may be
otherwise defined herein.
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| |  | 7.5 |  | Currency.
All prices and charges under this Agreement are stated and shall be
paid in United States dollars. Distributor agrees to take all necessary actions
required, including registration of this Agreement and application for
permission to make payments to Castelle hereunder, with the appropriate
government authorities of Distributors jurisdiction, or such other
institution or official, and to take such other measures as may be necessary to
comply with any government currency controls in effect in Distributors
jurisdiction, as soon as reasonably practicable after execution of this
Agreement.
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|8. |  | LIMITED
WARRANTY
|-- |  | ----------------

| |  | 8.1 |  | Castelle Warranty.
The Distributor shall provide and abide by Castelles
warranty. Castelle warrants that it has the right and interest in the Products
to make the sales and licenses contemplated herein. Castelle warrants the
Products against defects in materials and/or workmanship for one (1) year from
purchase by the end-user customer or fifteen (15) months from Castelles
initial shipment to Distributor, whichever is less. This warranty is contingent
upon proper use of a Product in the application for which it is intended and is
voided if Products are modified without Castelles approval or are
subjected to unusual physical or electrical stress.
| |  | --- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  |  |  | When a
defective Product is returned, freight prepaid, validly to Castelle's factory in Morgan
Hill, California, U.S.A., during the warranty period, Castelle, at its sole option, shall
repair or replace the defective Product at no charge. Castelle will furnish repair parts
and replacement Products on an exchange basis. Such parts and replacement Products may be
either reconditioned or new. After repair or replacement Castelle will return the
Products, freight paid, promptly at its expense by a carrier or method of delivery of its
choosing.
| |  |  |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  |  |  | Castelle does
not warrant that the Products or spare parts shall operate uninterrupted or without
error. The warranty shall be void on Products which have been subjected to abuse, misuse,
accident, alteration, neglect, unauthorized repair or installation. Castelle shall make
the final determination as to the existence and cause of any alleged defect. Expendable
items (such as lamps and fuses) are not warranted.
| |  |  |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | 8.2 |  | No Other Warranty.
EXCEPT FOR THE LIMITED WARRANTY REFERENCED ABOVE, CASTELLE
GRANTS NO OTHER WARRANTIES, EXPRESS OR IMPLIED, BY STATUTE OR OTHERWISE,
REGARDING THE PRODUCTS, AND SPECIFICALLY DISCLAIMS ANY IMPLIED WARRANTY OF
FITNESS FOR ANY PURPOSE, QUALITY, MERCHANTABILITY, OR OTHERWISE.
| |  | --- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|9. |  | CHANGES,
IMPROVEMENTS AND DISCONTINUANCE
|-- |  | ----------------------------------------

| |  | 9.1 |  | Changes and Improvements.
During the term of this Agreement, Castelle agrees to
inform Distributor on a timely basis of changes and improvements in the
Products performance, serviceability, uses and applications. Castelle
reserves the right to make any changes to the Products which it deems
appropriate.
| |  | --- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | 9.2 |  | Discontinued Product.
If during the term of this Agreement, Castelle
discontinues a Product(s), Castelle agrees to provide Distributor with sixty
(60) days prior written notice of Products discontinuance. Distributor may
place an order for such discontinued Product(s) during the notification period
for delivery within six (6) months after the end of such notice period, but
Castelles acceptance of such orders shall be on an as
available basis.
| |  | --- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|10. |  | STOCK
ROTATION
|--- |  | --------------

| |  | 10.1 |  | At the beginning of each
calendar quarter during the term of this Agreement, Distributor may return one (1)
consolidated shipment of Products to Castelle, freight prepaid, for credit against future
orders provided Distributor meets the following criteria: (i) the value of the returned
Product(s) shall be no greater than the purchase value of the returned Product(s) based on
Castelle's then current Distributor Price List; (ii) all returned Products must be in
their unopened, original packaging, be in new condition, be on Castelle's currently
available Product Price List and not have been abused or damaged; (iii) Distributor shall
not return any Products for the same identical Product model; (iv) at the time of the
return, Distributor must place an irrevocable Purchase Order with Castelle having a net
value of not less than the value of the returned Product; (v) the total value of the
returned Product shall not exceed 20% of the value of the previous quarter's net shipments
to the Distributor. Distributor shall request a Return Material Authorization ("RMA")
number for the return of the Product(s). Distributor shall return the Product(s), in its
original shipping carton with the RMA number displayed on the outside of the carton.
Castelle may refuse to accept any Product that does not bear a valid RMA number on the
carton. Product(s) must be shipped to arrive at Castelle no later than 60 days after the
issuance of the RMA number; the RMA number will no longer be valid after that time.
| |  | ---- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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|11. |  | INTERNET
WEB SITE AND PRODUCT DOCUMENTATION
|--- |  | -------------------------------------------

| |  | 11.1 |  | Castelle Web Site.
Castelle agrees to provide Distributor with a current copy and future updates
of relavent portions of its Castelle U.S. web site to be replicated by Distributor in a
format appropriate for the U.K. market.
| |  | ---- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | 11.2 |  | Distributor Web Site.
Distributor shall review and get approval from Castelle prior to making
modifications to the Castelle U.S. web site for implementation in the U.K. market.
Distributor web site may be listed as castelle.uk.co and have links to appropriate
Castelle U.S. web pages such the technical support data base, product evaluation
downloads, email newsletters, lead generation email blast tools, etc.
| |  | ---- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | 11.3 |  | Distributor Web Site Statistics and Information.
Distributor shall make available to Castelle information from its castelle.uk.co
web site including page hits, leads generated and other information that may be
deemed relevant.
| |  | ---- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | 11.4 |  | Product Documentation.
Castelle agrees to provide Distributor with a reasonable
initial quantity of Castelles advertising and promotional materials and
technical data related to the Products at no charge. Distributor may purchase
from Castelle any additional advertising and product promotional material and
technical data related to Castelles Products which it requires to promote
such Products.
| |  | ---- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|12. |  | TRAINING,
SUPPORT AND SERVICES
|--- |  | ------------------------------

| |  | 12.1 |  | Services by Distributor.
Distributor shall train its customers with respect to
the Products sold. The services shall be performed only by specially and
properly trained personnel of Distributor. Distributor will maintain sufficient
inventory of the Products to provide competitive delivery schedules and
satisfactory replacement services for DOA (Dead-On-Arrival) products
to its customers. DOA products are those that are on the current price list, and
that have failed within 30 days of shipment from the Distributor to the
Distributors customer.
| |  | ---- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | 12.2 |  | Services by Castelle.
Castelle shall provide technical training for a reasonable number of Distributors
personnel at no charge. Such personnel shall have the appropriate technical knowledge and
English language skills to benefit from such training. In addition, Castelle shall provide
periodic sales, service and installation training classes to Distributor at no charge.
Sales and service training shall be held at such places and times as Distributor and
Castelle shall mutually agree.
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| |  | 12.3 |  | Spare Parts.
Castelle agrees to provide spare parts for Products sold hereunder
for a period of not less than one (1) year from the last date of shipment of
such Product to Distributor. Spare parts shall be made available to Distributor
at Castelles then current price in effect at the time Distributor orders
such spare parts.
| |  | ---- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | 12.4 |  | Support by Castelle.
Castelle agrees to provide during the principal period from
07:00 to 18:00 Pacific Standard Time, Monday through Friday, excluding Castelle
holidays, secondary technical support assistance to Distributor by telephone,
telefax and Internet for problem identification and resolution.
| |  | ---- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | 12.5 |  | Support in U.K. Market.
Distributor shall be responsible for supporting all
Products which it distributes to its customers. Distributor shall maintain
support personnel sufficiently knowledgeable with respect to the Products to
answer customer inquiries regarding the use and operation of the Products.
Distributor shall ensure that all customer questions are initially addressed to
and answered by Distributor.
| |  | ---- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | 12.6 |  | Support outside U.K. Market.
Distributor shall be responsible for supporting customers in other
European Countries which approximate 5 to 10 calls/emails per week.
| |  | ---- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | 12.7 |  | Support Transition and Fees.
Distributor shall assume support responsibility for
the current Castelle support contract customers in the U.K. market and provide
support through the customers contract period without additional charge.
Prior to the expiration of the support contract date Distributor shall renew the
support agreement and bill, collect and receive all renewal fees.
| |  | ---- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | 12.8 |  | Support Policy.
Distributor shall follow U.S. support policy guidelines and provide similar
support to its End User, VAR and Alliance Partner customers.
| |  | ---- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------

|13. |  | TRADEMARKS
AND TRADENAMES
|--- |  | -------------------------

| |  | 13.1 |  | License.
During the term of this Agreement, Distributor shall have the right to
use Castelles Trademarks in connection with Distributors sale or
marketing of Products, and to indicate that it is an Authorized Castelle
Distributor. Nothing herein shall grant to Distributor any right, title or
interest in the Trademarks, except as specifically set forth herein.
| |  | ---- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | 13.2 |  | No Registration.
At no time during or after the term of this Agreement shall
Distributor attempt or assist others to register any trademarks, slogans,
designs or trade names confusingly similar to those of Castelle, or challenge or
assist others to challenge Castelles Trademarks or registrations thereof.
| |  | ---- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | 13.3 |  | No Removal.
Distributor shall not remove, alter, deface or otherwise obscure any
Castelle trademark or trade name appearing on any Product or documentation
without the express written permission of Castelle.
| |  | ---- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | 13.4 |  | Approval of Representations.
All representations of Castelle Trademarks which Distributor intends
to use shall be first submitted to Castelle for approval (which shall not be unreasonably
withheld) of design, color and other details or shall be exact copies of those used by
Castelle. Distributor shall use all Castelle Trademarks only in accordance with the sales
of Castelle Products and consistent with Castelle's standards for the use of Castelle
Trademarks by the Distributor.
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|14. |  | PROMOTION
|--- |  | ---------

| |  | 14.1 |  | Distributor Promotion.
Distributor agrees to undertake during the term of the
Agreement such promotion and advertising campaigns and marketing strategies,
including advertising in local trade media, direct mail campaigns, Internet
marketing and trade show participation, as are necessary to stimulate and
promote the sale of the Products in the Territory. Distributor will make
available to Castelle copies of all sales literature, brochures and advertising
media relating to the Products.
| |  | ---- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | 14.2 |  | Distributor Focus.
Distributor has been a successful VAR in the territory and
understands it needs to focus on expanding the business through strong promotion
and support to other resellers, some of whom may be viewed at times as
competitors. A cooperative balance needs to be established between
Castelle U.K., AMS and other Resellers.
| |  | ---- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | 14.3 |  | Cooperative Promotion Allowance.
Castelle agrees to allocate 2% of the previous quarters net sales as a product
promotion allowance. Distributor shall submit promotion to Castelle for review
prior to any initial release. Upon receipt of reasonable evidence of such
promotion expenditures, Castelle will credit the amount against future
Distributor purchases.
| |  | ---- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | 14.4 |  | Other Market Development Funds.
Castelle may, from time to time at its own
discretion, provide additional funding, on a split-the-cost basis, for other
market development projects. Approval and credit procedures would be the same as
for the Cooperative Promotion Allowance.
| |  | ---- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|15. |  | TERMINATION
|--- |  | -----------

| |  | 15.1 |  | Termination for Insolvency.
To the extent permitted by law, Castelle may
terminate this Agreement effective immediately and without liability upon
written notice to Distributor if any one of the following events occurs: (i)
Distributor files a voluntary petition in bankruptcy or otherwise seeks
protection under any law for the protection of debtors; (ii) a proceeding is
instituted against Distributor under any provision of any bankruptcy, insolvency
or debtors relief law which is not dismissed within sixty (60) days; (iii)
a court assumes jurisdiction of the assets of Distributor; (iv) a trustee or
receiver is appointed by a court for all or a substantial portion of the assets
of Distributor; (v) Distributor becomes insolvent, is unable to or ceases to pay
its debts in the normal course, or suspends business, or (vi) Distributor makes
an assignment of its assets for the benefit of its creditors.
| |  | ---- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | 15.2 |  | Termination for Cause.
If either party fails to perform any material obligation under this Agreement, including,
in the case of Distributor, the failure to meet the Purchase Commitments set forth in
Exhibit B, then upon thirty (30) days written notice to the breaching party specifying
such default, the non-breaching party may terminate this Agreement, without liability,
unless: (i) the breach specified in the notice has been cured within the thirty (30) day
period; or (ii) the default reasonably requires more than thirty (30) days to correct (and
specifically excluding any failure to pay money), and the defaulting party has begun
substantial corrective action to correct the default within such thirty (30) day period
and diligently pursues such action, in which event, termination shall not be effective
unless ninety (90) days has expired from the date of the notice without corrective action
being completed and the default remedied.
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| |  | 15.3 |  | Effect of Termination.
| |  | ---- |  | ----------------------

| |  |  |  | (a) |  | Distributor's rights.
Upon termination or cancellation of this Agreement Distributor shall have no
further right to purchase Products for resale or to represent itself as an Authorized
Castelle Distributor except as specifically permitted in Paragraph 15.3 (b) below. All
unshipped orders shall be cancelled by Castelle without liability.
| |  |  |  | --- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  |  |  | (b) |  | Inventory.
Distributor may, unless notified otherwise in writing on or before the effective date of
termination, sell its remaining inventory of the Products after termination of this
Agreement. In the event that Distributor should elect not to sell its remaining
inventory, Castelle may, at its sole discretion, repurchase Distributor's inventory which
is fit, merchantable and in Castelle's original shipping carton at Castelle's then
current U.K. Distributor prices, less the aggregate amount of all credits previously
issued with respect to such Products. Castelle shall promptly inspect all Products
returned by Distributor and shall advise Distributor of any Product that is damaged and
not acceptable to Castelle for repurchase.
| |  |  |  | --- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|16. |  | LIMITED
LIABILITY
|--- |  | -----------------

| | IN
NO EVENT SHALL CASTELLE'S TOTAL LIABILITY HEREUNDER EXCEED THE AMOUNT PAID BY DISTRIBUTOR
FOR PRODUCTS HEREUNDER, AND IN NO EVENT SHALL CASTELLE BE LIABLE FOR COSTS OF PROCUREMENT
OF SUBSTITUTE GOODS OR SERVICES BY ANYONE, OR FOR ANY SPECIAL CONSEQUENTIAL, INCIDENTAL
OR OTHER DAMAGES, HOWEVER CAUSED, WHETHER FOR BREACH OF CONTRACT, NEGLIGENCE OR
OTHERWISE, AND WHETHER OR NOT CASTELLE HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH
DAMAGE. THIS LIMITATIOIN SHALL APPLY NOTWITHSTANDING ANY FAILURE OF ESSENTIAL PURPOSE OF
ANY LIMITED REMEDY PROVIDED HEREIN.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|17. |  | INTELLECTUAL
PROPERTY RIGHT INDEMNITY
|--- |  | -------------------------------------

| |  | 17.1 |  | Indemnity.
Subject to the restrictions set forth in this Paragraph, Castelle
agrees to defend and indemnify Distributor from and against all actions or
proceedings brought against Distributor arising out of any actual or alleged
infringement by the Products of any patent, copyright, trade secret or other
intellectual property right.
| |  | ---- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | 17.2 |  | Distributor Obligations.
Distributor shall promptly notify Castelle of any claim
hereunder upon becoming aware of the same and shall cooperate with and provide
all reasonable assistance to Castelle upon Castelles request and, at
Castelles expense, in the defense or settlement of such claim. Castelle
shall have sole authority to defend and/or settle any claim under this
Paragraph, provided, however, that Distributor may at its own cost, retain
separate representation.
| |  | ---- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|Page 9 of 21
|------------

|EXHIBIT
10.11
|-------------

| |  | 17.3 |  | Remedy for Infringement.
If any Product, or any portion thereof, is finally
adjudged to infringe a patent, copyright, trade secret or other intellectual
property right, or if in Castelles opinion is likely to become the subject
of such a claim, Castelle shall, at its option, either: (i) procure for
Distributor the right to continue using the Product(s); or (ii) replace or
modify the Products(s) so that it becomes non-infringing; or (iii) upon return
of all infringing Product(s), refund to Distributor the price actually paid by
Distributor for the infringing Products; or (iv) substitute for the infringing
Products(s) other suitable, non-infringing equipment.
| |  | ---- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | 17.4 |  | Entire Liability.
THE FOREGOING PROVISIONS OF THIS SECTION 17 STATE THE ENTIRE
LIABILITY AND OBLIGATIONS OF CASTELLE AND THE EXCLUSIVE REMEDY OF DISTRIBUTOR
WITH RESPECT TO ANY ALLEGED INTELLECTUAL PROPERTY RIGHT INFRINGEMENT BY THE
PRODUCTS.
| |  | ---- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|18. |  | GENERAL
TERMS AND CONDITIONS
|--- |  | ----------------------------

| |  | 18.1 |  | Notices.
All notices and requests required or authorized hereunder shall be
given in writing either by personal delivery, by registered or certified mail,
return receipt requested, or by telefax. Such notice shall be deemed to have
been given upon such date that it is so personally delivered; the date seven (7)
days after it is deposited in the mail; or the date the same is sent by telefax,
irrespective of the date appearing therein.
| |  | ---- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | 18.2 |  | Title.
Castelle warrants that is owns all right, title and interest in the
Products, including any Products hereafter made subject to this Agreement, and
in all of Castelles patents, trademarks, trade names, inventions,
copyrights, know-how and trade secrets relating to the design, manufacture,
operation or service of the products. Distributor understands and agrees that
the use of any of these proprietary rights is authorized solely for the purposes
set forth herein, and shall cease upon termination or expiration of this
Agreement.
| |  | ---- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | 18.3 |  | Confidentiality and Proprietary Information.
| |  | ---- |  | --------------------------------------------

| |  |  |  | (a) |  | Confidential relationship.
The parties agree and understand that by execution of this Agreement a
confidential relationship is created by which either party may have access to
confidential information owned or controlled by the other (including, but not limited to,
all drawings, blueprints, descriptions, specifications, software, and data) disclosed in
any form whether written, oral or on computer readable medium, and such information may
contain proprietary details and disclosures ("Confidential Information").
| |  |  |  | --- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  |  |  | (b) |  | Duty.
Each party shall keep and have its agents and employees keep all Confidential Information
confidential and shall not copy or disclose the same except as specifically authorized by
this Agreement, without the prior written consent of the other. Nothing herein shall
limit either party's use or dissemination of information not derived from the disclosing
party or which has been or is subsequently made public by the disclosing party or a third
party with the authority to do so. Upon expiration or termination of this Agreement, each
party shall return to the other all copies of all Confidential Information, whether
printed or otherwise.
| |  |  |  | --- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  |  |  | (c) |  | Reverse engineering.
Distributor agrees and covenants that it will not disassemble or reverse
engineer any Product or portion thereof. No right or license is granted by this Agreement
to Distributor to use Confidential Information or information derived from Page 10 of 21
Confidential Information, for any purpose other than as expressly permitted under this
Agreement.
| |  |  |  | --- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|Page 10 of 21
|-------------

|EXHIBIT
10.11
|-------------

| |  | 18.4 |  | Export.
The parties agree and understand that all obligations of Castelle to
deliver, and of Distributor to accept, Products hereunder shall be specifically
subject to Castelle obtaining the necessary approvals and licenses from the
United States Government for export of the same. Castelle agrees to use its best
commercially reasonable efforts, and Distributor agrees to cooperate in
providing information and assistance requested by Castelle to obtain any such
necessary approvals.
| |  | ---- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | 18.5 |  | Foreign Law Warranties and Obligations.
| |  | ---- |  | ---------------------------------------

| |  |  |  | (a) |  | Government consent.
Distributor represents and warrants that, as of the date of this Agreement, no
consent, approval or authorization of, or designation, declaration or filing with, any
governmental authority in the Territory, including the E. C. Commission, which has not
been made or obtained by Distributor prior to the date hereof, is required in connection
with the valid execution, performance and delivery of this Agreement. Alternatively, if
any such actions are required, Distributor agrees to use its best efforts to obtain such
consent, approval or authorization and agrees to comply with all applicable laws in its
performance under this Agreement.
| |  |  |  | --- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  |  |  | (b) |  | Import
and export control. Distributor understands and acknowledges that Castelle is subject to
regulation by agencies of the U.S. government, including the U.S. Department of Commerce,
which prohibit export or diversion of certain products and technologies to certain
countries. Any and all obligations of Castelle to provide technical information,
technical assistance, any media in which any of the foregoing is contained, training and
related technical data (collectively "Data") shall be subject in all respects to such
United States laws and regulations as shall from time to time govern the license and
delivery of technology and products abroad subject to the jurisdiction of the United
States, including the Export Administration Act of 1979, as amended, any successor
legislation, and the Export Administration Regulations issued by the U.S. Department of
Commerce, Bureau of Export Administration. Distributor warrants that it will comply in
all respects with the export and reexport restrictions set forth in the export license
(if necessary) for every item shipped from Castelle and will otherwise comply with the
Export Administration Regulations or other United States laws and regulations in effect
from time to time.
| |  |  |  | --- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  |  |  | (c) |  | Representations of Distributor.
Without in any way limiting the provisions of this Agreement, Distributor
agrees that, unless prior written authorization is obtained from the U.S. Department of
Commerce, Bureau of Export Administration, it will not resell, export or reexport, either
directly or indirectly, any Product, or any portion thereof, to country groups Q,S,W,Y,
or Z (as defined in the Export Administration Regulations and which currently consists of
Albania, Bulgaria, Cambodia, Cuba, Czechoslovakia, Estonia, Hungary, Laos, Latvia, Libya,
Lithuania, Mongolia People's Republic, North Korea, Poland, Romania, the (former) Union
of Soviet Socialist Republics and Vietnam), or Afghanistan or the People's Republic of
China any of the Data (if the direct products are commodities, software, or technical
data described on the Control List with a letter "A" following its Export Control Number).
| |  |  |  | --- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | 18.6 |  | Independent Contractors.
The relationship of Castelle and Distributor established by this Agreement is
that of independent contractors, and nothing contained herein shall be construed to (i)
give either party the power to direct and control the day-to-day activities of the other;
(ii) Page 11 of 21 constitute the parties as partners, joint venturers, co-owners or
otherwise as participants in a joint or common undertaking; or (iii) allow Distributor to
create or assume any obligation on behalf of Castelle for any purpose whatsoever. All
financial obligations associated with Distributor's business are the sole responsibility
of Distributor. All sales and other agreements between Distributor and its customers are
Distributor's exclusive responsibility and shall have no effect on Distributor's
obligations under this Agreement. Distributor shall be solely responsible for, and shall
indemnify and hold Castelle harmless from all claims, damages or lawsuits (including
Castelle's attorney's fees) arising out of the acts of Distributor, its employees or its
agents.
| |  | ---- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|Page 11 of 21
|-------------

|EXHIBIT
10.11
|-------------

| |  | 18.7 |  | Force Majeure.
Except for the obligation to pay money properly due and owing,
either party shall be excused from any delay or failure in performance hereunder
caused by reason of any occurrence or contingency beyond its control, including,
but not limited to, an act of God, earthquake, labor disputes, riots war, civil
insurrection, expropriation, novelty of product manufacture or other
unanticipated manufacturing problems, governmental requirements, inability to
secure materials on a timely basis, and transportation difficulties. The
obligations and rights of the party so excused shall be extended on a day-to-day
basis for the time period equal to the period of such excusable delay. In order
to obtain a suspension under this Paragraph, the party delayed shall send
written notice of the delay and the reason therefore to the other party within
seven (7) days from the time the party delayed knew of the cause of such delay.
| |  | ---- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | 18.8 |  | Arbitration.
Any dispute or claim arising out of, in relation to, or in
connection with this Agreement, or the interpretation, making, performance,
breach or termination thereof, shall be finally settled by binding arbitration
in Palo Alto, California under the Commercial Arbitration Rules of the American
Arbitration Association (AAA) by three arbitrators appointed in
accordance with said AAA Rules. Judgement on the award rendered by the
arbitrators may be entered in any court having jurisdiction thereof.
| |  | ---- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | 18.9 |  | Governing Law.
This contract shall be governed by the law of the state of
California and not by any terms of the Convention in Contracts for International
Sales of Goods. Arbitrators shall apply California law to the merits of any
dispute or claim, without reference to rules of conflict of law. Arbitration
proceedings shall be governed by the AAA Rules, without reference to state
arbitration law.
| |  | ---- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | 18.10 |  | Survival of Certain Terms.
The provisions of Paragraphs 8 [Limited Warranty], 13.2 [No
Registration], 17 [Intellectual Property Right Indemnity], and 18 [General Terms
and Conditions], shall survive the expiration or termination for any reason of
this Agreement.
| |  | ----- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | 18.11 |  | Waiver.
Any waiver of any right or remedy under this Agreement must be in writing and
signed by the party to be bound to be effective. No delay or omission in
exercising any right or remedy shall operate as a waiver of such right or remedy
or any other right or remedy. A waiver on any one occasion shall not be
construed as a waiver of any right or remedy on any future occasion.
| |  | ----- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | 18.12 |  | Assignment.
Any assignment of this Agreement, or any of the rights hereunder, either
voluntarily or by operation of law, by Distributor shall be void without the
joint, prior written consent of Castelle and Distributor.
| |  | ----- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | 18.13 |  | Severability.
If any provisions or portion thereof of this Agreement is held to be unenforceable or
invalid, the remaining provisions and portions thereof shall nevertheless be given full
force and effect, and the parties agree to negotiate in good faith, a substitute valid
provision which most nearly effects the parties' intent in entering into this Agreement.
| |  | ----- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|Page 12 of 21
|-------------

|EXHIBIT
10.11
|-------------

| |  | 18.14 |  | Language.
This Agreement shall be construed and interpreted in English, and any
translation hereof to a language other than English shall be for convenience
only.
| |  | ----- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------

|19. |  | ENTIRE
AGREEMENT
|--- |  | ----------------

| | This
Agreement together with the Exhibits attached hereto, constitutes the entire agreement
between the parties with respect to the subject matter hereof, taking precedence over and
superseding any prior or contemporaneous oral or written agreements or understandings. No
subsequent alterations, amendments, or additions hereto shall be binding and valid unless
reduced to writing and signed by both parties hereto.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | IN
WITNESS WHEREOF, the parties have executed this Agreement as of the date indicated below:
| | --------------------------------------------------------------------------------------------

| | CASTELLE INCORPORATED   
By:   /s/ Donald L. Rich
Name:     Donald L. Rich
Title:   President & CEO
Date:   April 24, 2001 | AMS Ltd.                
By:  /s/ Dennis Buller  
Name:    Dennis Buller  
Title:   Director       
Date:   April 24, 2001
| | -------------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------

|Page 13 of 21
|-------------

|EXHIBIT
10.11



EXHIBIT A


Distributor Price equal
to 65% of U.S. Price List MSRP


U.S. Price List and U.K.
Price List Included in Exhibit A



Page 14 of 21
|----------------------------------------------------------------------------------------------------------------------------------------------------------------

|EXHIBIT
10.11


U.S. Price
List


FaxPress
Network Fax Servers
|--------------------------------------------------------------

|FaxPress Small Business
Edition (SBE), 2500, 5000, 7000 & 7500 Fax Server
|-------------------------------------------------------------------------
|                                                                         

|
|

|Part Number  | Description                                                                | MSRP 
|------------ | -------------------------------------------------------------------------- | -----
|            
|6629860-1109 | Small Business Edition (SBE) Ethernet 8MB memory 1 line 14.4 Kbps          | $1495
|6629860-1100 | FaxPress 2500 Ethernet 8MB memory  2 lines 14.4 Kbps                     | $2995
|             | New!! Reform for FaxPress Software Included with FP5000/7000/7500         
|6629860-1055 | FaxPress 5000 Ethernet  16MB memory  4 lines  14.4 Kbps                | $5995
|6629860-1056 | FaxPress 5000 Ethernet  32MB memory  8 lines  14.4 Kbps                | $7995
|6629860-1136 | FaxPress 7000 Ethernet  10/100Base-T  32MB memory  8 lines  Rackmount | $8495
|6629860-1146 | FaxPress 7500 Ethernet  10/100Base-T  32MB memory  8L Fax/4L E&M  RM  | $9995
|            

| |  |  |  | FaxPress 2500, 5000, 7000 and 7500 models come with software version 6.x PRO,
and include a choice of Exchange Direct, Exchange Connector, or SMTP gateway.
The 5000, 7000 and 7500 models now also include Reform for FaxPress software.
| |  | - |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|
|

|FaxPress
PRO Software for Small Business Edition (SBE)
|--------------------------------------------------------
|                                                        

|
|

|PART NUMBER  | DESCRIPTION                                            | MSRP
|------------ | ------------------------------------------------------ | ----
|            
|6629860-1084 | FaxPress v6.x Basic to v6.x PRO with E-Mail Gateway | $495

FaxPress
Add-Ons & Upgrades

|
|

|FaxPress Software Upgrades to v6.x PRO
|----------------------------------------
|                                        

|
|

| |  |  |  | NOTE: |  | FaxPress
6.x software upgrades can only be sold to customers having FaxPress models 1500N, 3500,
OfficeConnect, SBE, 2500, 5000, 7000 or 7500. The purchase of a software upgrade does not
entitle the buyer/customer to any support on the FaxPress hardware. In cases where the
hardware needs to be upgraded in order to run the new software (including upgrades
necessitated by failures that can occur in the flashing of Boot PROM's or modifying of
EEPROM's), the cost of the hardware upgrade is the responsibility of the customer - it is
not included in the cost of the software. Customers that desire both software and
hardware support should investigate Castelle's Extended Support Agreement. Please contact
your Castelle Sales Representative for details.
| |  |  |  | ----- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|PART NUMBER  | DESCRIPTION                                                | MSRP 
|------------ | ---------------------------------------------------------- | -----
|            
|6629860-1095 | FaxPress v3.7.3 Upgrade to v6.x PRO with E-Mail Gateway | $1990
|6629860-1096 | FaxPress v4.x Upgrade to v6.x PRO with E-Mail Gateway   | $1690
|6629860-1097 | FaxPress v5.x Upgrade to v6.x PRO with E-Mail Gateway   | $1490
|            
|6629860-1081 | FaxPress v3.7.3 Upgrade to v6.x PRO without E-Mail Gateway | $ 995
|6629860-1082 | FaxPress v4.x Upgrade to v6.x PRO without E-Mail Gateway   | $ 695
|6629860-1083 | FaxPress v5.x Upgrade to v6.x PRO without E-Mail Gateway   | $ 495

| |  |  |  | Certain features contained in v6.x PRO are activated with a key code
that is based on the serial number of the FaxPress unit that it will be loaded
onto. The serial number will be required when ordering.
| |  | -- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|Page 15 of 21
|-------------

|EXHIBIT
10.11
|-------------

| |  | Purchase
of this software upgrade includes choice of Exchange Direct, Exchange Connector or SMTP
gateway. Please indicate your choice when ordering.
|--- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------

|FaxPress
Hardware Upgrades
|--------------------------

|PART NUMBER  | DESCRIPTION                             | MSRP 
|------------ | --------------------------------------- | -----
|            
|66298600-878 | FaxPress 1500/1500-N 1-line Upgrade Kit | $6257
|66298600-650 | FaxPress 3000/3500 2-line Upgrade Kit   | $ 995
|6629860-1049 | FaxPress 5000 4-line Upgrade Kit        | $2495

|FaxPress Software
Add-Ons for 5.x and 6.x
|-----------------------------------------

|PART NUMBER  | DESCRIPTION                                                        | MSRP
|------------ | ------------------------------------------------------------------ | ----
|            
|6629860-1006 | FaxPress OCR Software (for v5.x or higher)                         | $595
|6629860-1002 | FaxPress cc:Mail 6.x Gateway, Windows Version (for v5.x or higher) | $995
|6629860-1092 | FaxPress 6.x Lotus Notes Gateway, Windows NT only                 | $995
|6629860-1099 | FaxPress 6.x SMTP Gateway (Windows NT only)                       | $995
|6629860-1033 | FaxPress Exchange Direct Software (for v5.x or higher)            | $995
|6629860-1134 | FaxPress Exchange Connector Software (for 6.2 SP1 or higher)      | $995
|6629860-1152 | Reform for FaxPress (for 6.2 SP2 or higher) (New!)               | $250

| |  |  |  | This software is activated with a key code that is based on the
serial number of the FaxPress unit that it will be loaded onto. The serial
number will be required when ordering. For Exchange Direct, please specify your
current FaxPress software revision also.
| |  | - |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  |  |  | This software is activated with a key code that is based on the
seed number of the Reform Software. After installing Reform, you can
find the seed number by clicking Help and then the
Register button in the Form Designer.
| |  | -- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|LANpress
Network Print Servers
|------------------------------

|LANpress MP  | High-performance,
multi-protocol external print servers Supports Windows NT, Windows 95, Windows for
Workgroups, NetWare 2.x/3.x/4.x (NDS), AppleTalk & UNIX
|------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------

|
|

|PART NUMBER  | DESCRIPTION         | MSRP                                         
|------------ | ------------------- | ---------------------------------------------
|            
|6629860-1108 | LANpress Jr. 10/100 | Ethernet 10/100Base-T                       
|6629860-1072 | LANpress 2000 2+1   | Ethernet 10/100Base-T 2 parallel + 1 serial
|66298600-955 | LANpress 3P/100     | Ethernet 10/100Base-T 3 parallel           
|6629860-1042 | LANpress Jr. MP     | Ethernet 10Base-T                           
|6629860-1154 | LANpress 2P         | Wireless (New!)                              

|Page 16 of 21
|-------------

|EXHIBIT
10.11



OfficeDirect
Server Appliances
|-----------------------------------------------

|OfficeDirect Storage and Message Servers
|----------------------------------------
|                                        

|
|

|PART NUMBER  | DESCRIPTION                 | MSRP
|------------ | --------------------------- | ----
|            
|6629860-1130 | OfficeDirect Storage Server | $995
|6629860-1124 | OfficeDirect Message Server | $995

|InfoPress Information
Delivery Solutions Universal document access and delivery via phone, fax, e-mail
and the Web


InfoPress
Fax-On-Demand for Fax Press
|-----------------------------------------------------------------------------------------------------------------------------------------------------------

|PART NUMBER     | DESCRIPTION                                                       | MSRP 
|--------------- | ----------------------------------------------------------------- | -----
|               
|117-IP/FaxPress | 2 voice and 1 Fax Port Licenses plus ProLine2V, 2 Port Voice Card | $3289

|InfoPress Fax-On-Demand
Starting Bundles (includes FaxPress Integration Software)
|---------------------------------------------------------------------------------

|PART NUMBER   | DESCRIPTION                                                          |      
|------------- | -------------------------------------------------------------------- | -----
|             
|117-HSEBundle | InfoPress Fax-On-Demand, 2x1 Hardware/Software Kit w/Email-On-Demand | $5489
|117-HSBundle  | InfoPress Fax-On-Demand, 2x1 Hardware/Software Kit                   | $4389
|117-Sbundle   | InfoPress Fax-On-Demand, 2X1 Software                                | $3289

|InfoPress Additional
Software Licenses
|--------------------------------------

|PART NUMBER | DESCRIPTION                                        |      
|----------- | -------------------------------------------------- | -----
|           
|117-V       | InfoPress Software License, Voice (price per line) | $1425
|117-F       | InfoPress Software License, Fax (price per line)   | $1425

|InfoPress
Email-On-Demand Enterprise Edition
|--------------------------------------------

|PART NUMBER  | DESCRIPTION                                                   |       
|------------ | ------------------------------------------------------------- | ------
|            
|117-EMOD1    | InfoPress Email-On-Demand, Enterprise Edition, single address | $1095 
|117-EMOD25   | InfoPress Email-On-Demand, Enterprise Edition, 25 addresses   | $5495 
|117-EMOD100  | InfoPress Email-On-Demand, Enterprise Edition, 100 addresses  | $8245 
|117-EMOD100+ | InfoPress Email-On-Demand, Enterprise Edition, 100+ addresses | $10995

|Page 17 of 21
|-------------

|EXHIBIT
10.11


U.K. Price List


FaxPress
Network Fax Servers
|--------------------------------------------------------------

|FaxPress Small Business Edition (SBE), 2500, 5000, 7000 & 7500 Fax Server
|-------------------------------------------------------------------------
|                                                                         

|Part Number  | Description                                                                | MSRP 
|------------ | -------------------------------------------------------------------------- | -----
|            
|6629860-1109 | Small Business Edition (SBE) Ethernet 8MB memory 1 line 14.4 Kbps          | £997 
|6629860-1100 | FaxPress 2500+ Ethernet 8MB memory  2 lines 14.4 Kbps                     | £1997
|             | New!! Reform for FaxPress Software Included with FP5000/7000/7500         
|6629860-1055 | FaxPress 5000+ Ethernet  16MB memory  4 lines  14.4 Kbps                | £3997
|6629860-1056 | FaxPress 5000+ Ethernet  32MB memory  8 lines  14.4 Kbps                | £5330
|6629860-1136 | FaxPress 7000+ Ethernet  10/100Base-T  32MB memory  8 lines  Rackmount | £5663
|6629860-1146 | FaxPress 7500+ Ethernet  10/100Base-T  32MB memory  8L Fax/4L E&M  RM  | £6663

| |  |  | FaxPress 2500, 5000, 7000 and 7500 models come with software version 6.x PRO,
and include a choice of Exchange Direct, Exchange Connector, or SMTP gateway.
| | - |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------

|
|

|FaxPress PRO Software for Small Business Edition (SBE)
|--------------------------------------------------------
|                                                        

|
|

|PART NUMBER  | DESCRIPTION                                            | MSRP
|------------ | ------------------------------------------------------ | ----
|            
|6629860-1084 | FaxPress v6.x Basic to v6.x PRO with E-Mail Gateway+++ | £330

|FaxPress
Add-Ons & Upgrades
|---------------------------

|FaxPress Software Upgrades to v6.x PRO
|----------------------------------------
|                                        

|
|

| |  |  |  | NOTE: |  | FaxPress
6.x software upgrades can only be sold to customers having FaxPress models 1500N, 3500,
OfficeConnect, SBE, 2500, 5000, 7000 or 7500. The purchase of a software upgrade does not
entitle the buyer/customer to any support on the FaxPress hardware. In cases where the
hardware needs to be upgraded in order to run the new software (including upgrades
necessitated by failures that can occur in the flashing of Boot PROM's or modifying of
EEPROM's), the cost of the hardware upgrade is the responsibility of the customer - it is
not included in the cost of the software. Customers that desire both software and
hardware support should investigate Castelle's Extended Support Agreement. Please contact
your Castelle Sales Representative for details.
| |  |  |  | ----- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|PART NUMBER  | DESCRIPTION                                                | MSRP 
|------------ | ---------------------------------------------------------- | -----
|            
|6629860-1095 | FaxPress v3.7.3 Upgrade to v6.x PRO with E-Mail Gateway | £1327
|6629860-1096 | FaxPress v4.x Upgrade to v6.x PRO with E-Mail Gateway   | £1127
|6629860-1097 | FaxPress v5.x Upgrade to v6.x PRO with E-Mail Gateway   | £ 993
|            
|6629860-1081 | FaxPress v3.7.3 Upgrade to v6.x PRO without E-Mail Gateway | £ 663
|6629860-1082 | FaxPress v4.x Upgrade to v6.x PRO without E-Mail Gateway   | £ 463
|6629860-1083 | FaxPress v5.x Upgrade to v6.x PRO without E-Mail Gateway   | £ 330

| |  |  |  | Certain features contained in v6.x PRO are activated with a key code
that is based on the serial number of the FaxPress unit that it will be loaded
onto. The serial number will be required when ordering.
| |  | -- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|Page 18 of 21
|-------------

|EXHIBIT
10.11

 Purchase
of this software upgrade includes choice of Exchange Direct, Exchange Connector
or SMTP gateway.

FaxPress
Hardware Upgrades
|--------------------------------------------------------------------------------------------------------------------------------------------------------

|PART NUMBER  | DESCRIPTION                             | MSRP 
|------------ | --------------------------------------- | -----
|            
|66298600-878 | FaxPress 1500/1500-N 1-line Upgrade Kit | £ 417
|66298600-650 | FaxPress 3000/3500 2-line Upgrade Kit   | £ 663
|6629860-1049 | FaxPress 5000 4-line Upgrade Kit        | £1663

|FaxPress Software
Add-Ons for 5.x and 6.x
|-----------------------------------------

|PART NUMBER  | DESCRIPTION                                                          |     
|------------ | -------------------------------------------------------------------- | ----
|            
|6629860-1006 | FaxPress OCR Software (for v5.x or higher)                           | £397
|6629860-1002 | FaxPress cc:Mail 6.x Gateway, Windows Version (for v5.x or higher)   | £663
|6629860-1092 | FaxPress 6.x Lotus Notes Gateway, Windows NT only                   | £663
|6629860-1099 | FaxPress 6.x SMTP Gateway (Windows NT only)                         | £663
|6629860-1033 | FaxPress Exchange Direct Software (for v5.x or higher)              | £663
|6629860-1134 | FaxPress Exchange Connector Software (for 6.2 SP1 or higher) (New!) | £663
|6629860-1152 | Reform for FaxPress (for 6.2 SP2 or higher) (New!)                 | £167

| |  |  |  | This software is activated with a key code that is based on the
serial number of the FaxPress unit that it will be loaded onto. The serial
number will be required when ordering. For Exchange Direct, please specify your
current FaxPress software revision also.
| |  | - |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  |  |  | This software is activated with a key code that is based on the
seed number of the Reform Software. After installing Reform, you can
find the seed number by clicking Help and then the
Register button in the Form Designer.
| |  | -- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|LANpress
Network Print Servers
|------------------------------

|LANpress MP  | High-performance,
multi-protocol external print servers Supports Windows NT, Windows 95, Windows for
Workgroups, NetWare 2.x/3.x/4.x (NDS), AppleTalk & UNIX
|------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------

|
|

|PART NUMBER  | DESCRIPTION         | MSRP                                                
|------------ | ------------------- | ----------------------------------------------------
|            
|6629860-1108 | LANpress Jr. 10/100 | Ethernet 10/100Base-T (New!)                       
|6629860-1072 | LANpress 2000 2+1   | Ethernet 10/100Base-T 2 parallel + 1 serial (New!)
|66298600-955 | LANpress 3P/100     | Ethernet 10/100Base-T 3 parallel                  
|6629860-1042 | LANpress Jr.MP      | Ethernet 10Base-T                                  
|6629860-1154 | LANpress 2P         | Wireless                                            

|Page 19 of 21
|-------------

|EXHIBIT
10.11



OfficeDirect
Server Appliances
|-----------------------------------------------

|OfficeDirect Storage and Message Servers
|----------------------------------------
|                                        

|
|

|PART NUMBER  | DESCRIPTION                        | MSRP
|------------ | ---------------------------------- | ----
|            
|6629860-1130 | OfficeDirect Storage Server(New!)  | £663
|6629860-1124 | OfficeDirect Message Server (New!) | £663

|InfoPress Information
Delivery Solutions Universal document access and delivery via phone, fax, e-mail
and the Web


InfoPress
Fax-On-Demand for Fax Press
|-----------------------------------------------------------------------------------------------------------------------------------------------------------

|PART NUMBER     | DESCRIPTION                                                       | MSRP 
|--------------- | ----------------------------------------------------------------- | -----
|               
|117-IP/FaxPress | 2 voice and 1 Fax Port Licenses plus ProLine2V, 2 Port Voice Card | £2193

|InfoPress Fax-On-Demand
Starting Bundles (includes FaxPress Integration Software)
|---------------------------------------------------------------------------------

|PART NUMBER   | DESCRIPTION                                                          | MSRP 
|------------- | -------------------------------------------------------------------- | -----
|             
|117-HSEBundle | InfoPress Fax-On-Demand, 2x1 Hardware/Software Kit w/Email-On-Demand | £3659
|117-HSBundle  | InfoPress Fax-On-Demand, 2x1 Hardware/Software Kit                   | £2926
|117-Sbundle   | InfoPress Fax-On-Demand, 2X1 Software                                | £2193

|InfoPress Additional
Software Licenses
|--------------------------------------

|PART NUMBER | DESCRIPTION                                        | MSRP
|----------- | -------------------------------------------------- | ----
|           
|117-V       | InfoPress Software License, Voice (price per line) | £950
|117-F       | InfoPress Software License, Fax (price per line)   | £950

|InfoPress
Email-On-Demand Enterprise Edition
|--------------------------------------------

|PART NUMBER  | DESCRIPTION                                                   | MSRP 
|------------ | ------------------------------------------------------------- | -----
|            
|117-EMOD1    | InfoPress Email-On-Demand, Enterprise Edition, single address | £730 
|117-EMOD25   | InfoPress Email-On-Demand, Enterprise Edition, 25 addresses   | £3663
|117-EMOD100  | InfoPress Email-On-Demand, Enterprise Edition, 100 addresses  | £5497
|117-EMOD100+ | InfoPress Email-On-Demand, Enterprise Edition, 100+ addresses | £7330

|Page 20 of 21
|-------------

|EXHIBIT
10.11





EXHIBIT B


Minimum Purchase Agreement


Distributor agrees to
purchase no less than US$100,000 per calendar quarter.


Page 21 of 21
|--------------------------------------------------------------------------------------------------------------------------------------------------------