Document:

ELX20140330ex103

Exhibit 10.3

Confidential portions of this Exhibit marked as [**] have been omitted pursuant to a request for confidentiality and filed separately with the Securities and Exchange Commission. 
            

DISMISSAL AND STANDSTILL AGREEMENT

This DISMISSAL AND STANDSTILL AGREEMENT (this “Agreement”) is made and entered into as of March 30, 2014 (the “Effective Date”) by and between Broadcom Corporation, a corporation duly organized and existing under the laws of California, having its principal place of business at 5300 California Avenue, Irvine, California 92617 (“Broadcom”), and Emulex Corporation, a corporation duly organized and existing under the laws of Delaware, having its principal place of business at 3333 Susan Street, Costa Mesa, California 92626 (“Emulex”).  Broadcom and Emulex may hereinafter be referred to collectively as the “Parties” and individually as a “Party.”
WHEREAS, in connection with the patent infringement suit identified as Broadcom Corporation v. Emulex Corporation, Civil Action No. 8:09-cv-01058 (C.D. Cal.) (the “Litigation”), brought by Broadcom against Emulex: the District Court for the Central District of California granted judgment as a matter of law on certain claims, granted a permanent injunction with respect to certain products pursuant to the Court’s order issued on April 3, 2012 and its amendments (the “Injunction”) and left certain patent claims to be considered in a retrial currently scheduled for September 9, 2014; and 
WHEREAS, the Parties wish to enter into this Agreement providing for, among other things: (i) payment by Emulex to Broadcom of a fee; (ii) dismissal without prejudice of certain claims scheduled for the September 9, 2014 retrial; and (iii) Broadcom agreeing to a limited standstill under certain patents with respect to certain Emulex products for a period of one year. 
NOW, THEREFORE, in consideration of the mutual covenants and premises contained herein, and other valuable consideration, the receipt and sufficiency of which is hereby acknowledged by the Parties, the Parties agree as follows:
1.DEFINITIONS 
1.1    “Affiliate” as to an entity, means another entity that, directly or indirectly, Controls, is Controlled by or is under common Control with such entity.
1.2    “Assert” (or “Assertion”) mean bringing, commencing, filing or otherwise instituting any infringement claim, petition for declaratory judgment or other proceeding alleging infringement or non-infringement, invalidity, or unenforceability of any patent before any legal, judicial, arbitral, administrative, executive or other body or tribunal, anywhere in the world, that has or claims to have authority to adjudicate such claim, including without limitation any court or arbitral body, the U.S. International Trade Commission, the U.S. Patent and Trademark Office or the European Patent Office.
1.3    “BE2” means the Emulex product called BladeEngine2, solely with respect to specific versions of such product that were made commercially available by Emulex as of September 1st, 2011. 
1.4    “BE3” means the Emulex product called BladeEngine3, solely with respect to specific versions of such product that were made commercially available by Emulex as of September 1st, 2011.
1.5    “Change of Control” means, as to a subject party, [**] who did not previously Control [**] obtains Control [**].
1.6    “Control” (including “Controlled” and other forms) of an entity means (a) beneficial ownership [**].
1.7    “Dismissal and Standstill Fee” means the amount payable under Section 5.1 below.
1.8    “Emulex Customer” means any person or entity which purchases or acquires Standstill Products.  
1.9    “Lancer” means the Emulex product called Lancer, solely with respect to specific versions of such product that were made commercially available by Emulex as of September 1st, 2011.

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Confidential portions of this Exhibit marked as [**] have been omitted pursuant to a request for confidentiality and filed separately with the Securities and Exchange Commission. 

1.10    “QT2025” means the combination of the Applied Micro QT2025 chip (only for such versions that were commercially available as of September 1st, 2011) with BE2.
1.11    “SerDes Patents” means: (1) U.S. Patent Nos. 6,424,194; 7,038,516, 7,215,169; 7,486,124; and 7,724,057 (the “Specified Patents”); and (2) any reissues, foreign counterparts, continuations, continuations-in-part, divisionals or reexaminations of the Specified Patents.  
1.12    “Standstill Products” means, individually and collectively: BE2 , BE3, QT2025, and Lancer. 
1.13    “Subsidiary” means, with respect to a Party any entity Controlled by such Party, but only during the period such entity is Controlled by such Party.
1.14    “Term” has the meaning set forth in Section 6.1.  
2.DISMISSAL.  Within ten (10) business days of the Effective Date (provided that Broadcom has timely received the first installment of the Dismissal and Standstill Fee as set forth in Section 5.1), the Parties shall jointly submit to the relevant court a document in the form attached hereto as Exhibit A in order to dismiss without prejudice claims made in the Litigation relating to the SerDes Patents.  Such dismissal and this Agreement shall have no effect on the Injunction, which shall remain in full force and effect.  
3.STANDSTILL
3.1    Limited Standstill.  Provided that Broadcom continues to timely receive each installment of the Dismissal and Standstill Fee as set forth in Section 5.1, and subject to all terms and conditions of this Agreement, Broadcom agrees that, during the Term, Broadcom and its Subsidiaries shall delay making any Assertion against: (a) Emulex, an Emulex Subsidiary or any Emulex Customer; or (b) any third party supplier of serializer/deserializer function blocks, solely with respect to the supply of such blocks to Emulex (“SerDes Suppliers”), in each case of (a) and (b) to the extent such Assertion would allege infringement of the SerDes Patents based solely on the use, manufacture, sale or import of Standstill Products.  The foregoing constitutes a limited, non-exhaustive standstill during the Term only and not a license, covenant not to sue, release or other right or immunity.  For the avoidance of doubt and without limitation, nothing in this Agreement shall prevent the following: (i) that damages shall accrue during the Term with respect to any infringement of the SerDes Patents relating to the Standstill Products; and (ii) that after the end of the Term, Broadcom is not precluded from seeking recovery of damages accruing from such infringement, whether occurring prior to, during or after the Term, or from seeking an injunction against future infringement occurring after the Term.  
3.2    Restrictions and Clarifications.  Emulex, on behalf of itself and its Affiliates, hereby acknowledges and agrees that: (i) nothing in this Agreement shall constitute, be construed or otherwise be interpreted (under any theory, whether waiver, implication, estoppel, exhaustion or otherwise) as a license, covenant, authorization, release, immunity, forbearance, forfeiture, waiver or other grant of rights by Broadcom with respect to any products or services (including any products or services which may be combined or used in connection with the Standstill Products) other than the limited standstill with respect to the Standstill Products solely to the extent expressly set forth in Section 3.1; (ii) Emulex is not providing any consideration for, and no provision of this Agreement is intended to provide (under any theory, whether waiver, implication, estoppel, exhaustion or otherwise), any license, covenant, authorization, release, immunity, forbearance, forfeiture, waiver or other grant of rights with respect to any patent or other intellectual property right, other than the SerDes Patents solely to the extent expressly set forth in Section 3.1 (such excluded patents and other intellectual property rights, collectively, “Other IPR”), regardless of whether any such Other IPR is dominant or subordinate to the SerDes Patents or whether such Other IPR relates to the Standstill Products; (iii) the using, making, having made, selling, offering for sale or importation of Standstill Products may infringe Other IPR; (iv) the Injunction shall remain in full force and effect, and products, services, processes, technology or activities may violate the Injunction or otherwise violate Broadcom’s intellectual property rights; and (v) Emulex shall not use the existence of this Agreement in any future proceeding relating to infringement of the SerDes Patents.    
4.NOTICE.  
4.1    Intent to Assert.  Provided that Broadcom continues to timely receive each installment of the Dismissal and Standstill Fee as set forth in Section 5.1, and subject to all terms and conditions of this Agreement, Broadcom agrees 

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Confidential portions of this Exhibit marked as [**] have been omitted pursuant to a request for confidentiality and filed separately with the Securities and Exchange Commission. 

that, during the Term, Broadcom shall provide at least thirty (30) days prior written notice to Emulex prior to Broadcom or any Broadcom Subsidiary making any Assertion against Emulex or any Emulex Subsidiary.  Upon written request by Emulex, Broadcom agrees to, during such thirty (30) day notice period, participate in good faith discussions with Emulex regarding a resolution of the dispute to which such Assertion would relate through the Dispute Resolution [**].  
4.1    Dispute Resolution [**].  Any discussions regarding resolution of a dispute referenced in Section 4.1 shall be conducted through [**].  The Dispute Resolution [**] may determine to involve a mediator for its discussions, and the cost of such mediator shall be divided equally between the parties.  Broadcom’s [**] Emulex’s [**] shall only be binding if reduced to a written agreement executed by each Party.  
4.2    No Emulex Assertion.  During the thirty (30) day notice period referenced in Section 4.1, neither Emulex nor any Emulex Subsidiary will make any Assertion against Broadcom, a Broadcom Subsidiary or any Broadcom or Broadcom Subsidiary patent, product, service, process or technology.  
4.3    Lapse.  Sections 4.1 and 4.2 shall be of no further force or effect in the event of a Change of Control of Emulex.  
5.    CONSIDERATION
5.1    Dismissal and Standstill Fee.  Emulex will pay Broadcom a non-refundable and non-cancelable Dismissal and Standstill Fee of Five Million U.S. Dollars (US $5,000,000), payable in two installments.  Emulex shall pay the first installment of One Million Two Hundred Fifty Thousand U.S. Dollars (US $1,250,000) within five (5) business days following the Effective Date; and Emulex shall pay the second installment of Three Million Seven Hundred Fifty Thousand U.S. Dollars (US $3,750,000) by March 30, 2015.
[**]    Emulex shall make such payment of the Dismissal and Standstill Fee via electronic transfer to the following [**]
	
		
	[**]
	[**]

	 
	[**]

	 
	[**]

	[**]
	[**]

	[**]
	[**]

	[**]
	[**]

	[**]
	[**]

5.3    Taxes.  Emulex shall be responsible for payment of all sales, use, property, value-added, withholding, or other federal, state or local taxes arising out of or relating to this Agreement, except for taxes based solely on Broadcom’s net income.  If Broadcom is required to pay any taxes arising out of or relating to this Agreement (other than taxes based solely on Broadcom’s net income), then such taxes shall be billed to and paid by Emulex.  The Dismissal and Standstill Fee payment made by Emulex to Broadcom pursuant to this Agreement shall be made without any withholding or deduction of any withholding tax or other tax or mandatory payment to government agencies.  If Emulex is legally required to make any such withholding or deduction, the Dismissal and Standstill Fee payable by Emulex shall be increased to the extent necessary to ensure that, after such withholding or deduction, Broadcom receives and retains, free from liability for such withholding or deduction, a net amount equal to the amount Broadcom would have received and retained in the absence of such required withholding or deduction.  Should Broadcom be able to successfully claim a foreign tax credit based on any such withholding or deduction made by Emulex, Broadcom will promptly pay to Emulex the amount of such foreign tax credit.
5.4    No Admission.  Emulex, on behalf of itself and its Affiliates, acknowledges and agrees that Broadcom’s entry into this Agreement is due to unique circumstances relating to the SerDes Patents and Standstill Products, and that nothing herein should be interpreted to the effect that the Dismissal and Standstill Fee payable hereunder would have any relevance whatsoever in any determination of what royalties or other consideration may be adequate or 

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Confidential portions of this Exhibit marked as [**] have been omitted pursuant to a request for confidentiality and filed separately with the Securities and Exchange Commission. 

appropriate with respect to any standstill, license or covenant relating to any of the SerDes Patents or any other transaction, patent or set of patents, or product or set of products.  This Agreement is entered into without any admission or acquiescence on the part of any Party as to the merit of any claim, liability, order, award, judgment, damages, or injunction related to any patent rights or the Litigation (“Admission”).  Neither the fact of a Party’s entry into or performance of this Agreement nor any term or terms hereof shall constitute, or be used as evidence of, an Admission by either Party at any time or for any purpose.
6.    TERM; TERMINATION
6.1    Term.  This Agreement shall commence on the Effective Date and continue until the one (1) year anniversary thereof, unless earlier terminated (the “Term”). 
6.2    Termination.  In the event of that Emulex breaches its obligations under Section 5.1 or Section 7 and does not cure such breach within five (5) days after written notice thereof by Broadcom, then Broadcom may terminate this Agreement upon written notice to Emulex.  
6.3    Defensive Termination.  If at any time Emulex [**]  
6.4    Effect of Termination.  All rights and obligations hereunder (including, without limitation and notwithstanding anything else, all of Broadcom’s obligations under Sections 3.1 and 4.1), shall terminate as of the expiration or termination of this Agreement, provided that the provisions of Sections 1, 3.2, 5.2, 5.3, 5.4, 6.4, 7 and 8 of this Agreement shall survive the expiration or termination of this Agreement for any reason.  In addition, all of Emulex’s obligations under Section 5.1 shall survive in the event of any termination under Section 6.3.  
7.    CONFIDENTIALITY
Each Party agrees that the terms of this Agreement shall remain confidential and shall not be disclosed to any third party without the prior written consent of the other Party hereto except (a) to such Party’s attorneys, auditors and accountants (and, with respect to Emulex, the SerDes Suppliers) on a need-to-know basis under circumstances that reasonably ensure the confidentiality thereof, (b) as may be required by applicable rule, law, regulation, or order of a stock exchange, court or governmental authority of competent jurisdiction, and (c) each Party may disclose this Agreement, in confidence, to such Party’s actual or potential sources of equity or debt financing and potential acquirers of one or more businesses of the Party.  With respect to the foregoing subsection (b), the Party required to make the disclosure shall, to the extent legally permissible, provide the other Party with prior written notice, and shall use reasonable efforts to limit the disclosure of the terms and conditions of this Agreement and obtain a protective order or other confidential treatment of this Agreement.  If not legally permissible to provide prior written notice, the Party required to make the disclosure shall provide written notice as soon as legally permissible to do so.  
8.    MISCELLANEOUS
8.1    Authority.  Each Party represents and warrants that it has the power and authority to make, execute, deliver and perform under this Agreement.  
8.2    Assignment.  Neither Party shall have the right to assign or transfer this Agreement without the other Party’s prior written consent.  Notwithstanding the installment payment schedule set forth in Section 5.1, in the event of any Change of Control, sale or transfer of material assets, bankruptcy, insolvency, assignment for the benefit of creditors, appointment of a receiver or trustee, liquidation, winding up or similar event involving Emulex, then the entire amount of the Dismissal and Standstill Fee that remains unpaid at the time of such event shall be immediately due and payable to Broadcom.  Subject to the foregoing, this Agreement, and the releases contained herein, shall be binding upon and shall inure to the benefit of the Parties hereto and their respective permitted successors and assigns.
8.3    Costs and Expenses.  Each of the Parties shall bear its own costs, expenses and attorneys fees incurred with regard to the negotiation, drafting, and consummation of this Agreement. 
8.4    Governing Law/Forum.  This Agreement shall be governed by, and construed and enforced in accordance with the laws of the State of California without regard to or application of choice of law rules or principles. Should any 

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Confidential portions of this Exhibit marked as [**] have been omitted pursuant to a request for confidentiality and filed separately with the Securities and Exchange Commission. 

future action be brought regarding this Agreement or any provision contained herein, such action shall be brought in a state or federal court of competent jurisdiction in the Central District of California.  The Parties also hereby stipulate that any judgment arising out of this Agreement and issued by a court of competent jurisdiction in the State of California shall be given full faith and credit in all jurisdictions.
8.5    Attorneys Fees.  The prevailing Party in any proceeding brought to enforce the provisions of this Agreement is entitled to recover its costs and expenses (including reasonable attorney fees) incurred in connection with such proceeding and as may be incurred in connection with collecting any money judgment or award or otherwise enforcing each order, judgment, or decree entered in the proceeding.
8.6    Notices. Notices under this agreement shall be sent to a Party via overnight delivery with proof of delivery to the respective address first set forth above. Notices to Emulex shall be directed to the attention of "Senior Vice President, General Counsel.”  Notices to Broadcom shall be directed to the attention of “Executive Vice President, General Counsel and Secretary.”
8.7    Severability.  If any provision of this Agreement is held to be illegal or unenforceable, such provision shall be limited or eliminated to the minimum extent necessary so that the remainder of this Agreement will continue in full force and effect and be enforceable. The Parties agree to negotiate in good faith an enforceable substitute provision for any invalid or unenforceable provision that most nearly achieves the intent of such provision.
8.8     Entire Agreement: Third Party Beneficiaries.  This Agreement constitutes the entire agreement among the Parties with respect to the subject matter hereof and supersedes all prior agreements and understandings, both written and oral, among the Parties with respect to the subject matter hereof, it being understood that the Patent License and Release Agreement dated July 3, 2012 shall continue in full force and effect and is not superseded by this Agreement. No waiver shall be effective unless such waiver is in writing and is signed by the party against whom the waiver is to be effective. No amendment shall be effective unless such amendment is in writing and is signed by each party. The contractual rights in this Agreement are solely for the benefit of Emulex and Broadcom, their respective Affiliates, and any of their permitted successors and assigns, and shall not confer any rights or remedies upon any other person or entity, as a third party beneficiary or otherwise, except as specified in Section 3.1. 
8.9    Independent Contractors.  This Agreement shall not be construed as creating a partnership, joint venture, franchise, agency or other such relationship. The Parties agree that this Agreement represents a non-exclusive relationship and does not limit the ability of either Party to participate in other similar relationships with other third parties.
8.10    Counterparts.  This Agreement may be executed in counterparts and by facsimile or electronic PDF signature.  Each of said counterparts, when so executed and delivered, shall be deemed an original and, taken together, shall constitute one and the same instrument.
8.11    Captions.  The captions to the paragraphs or subparagraphs of this Agreement and the title of the Agreement itself are solely for the convenience of the Parties, are not a part of this Agreement, and shall not be used for the interpretation of, or determination of the validity of, this Agreement or any provision hereof.  
[signature page follows]

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Confidential portions of this Exhibit marked as [**] have been omitted pursuant to a request for confidentiality and filed separately with the Securities and Exchange Commission. 

IN WITNESS WHEREOF, the undersigned have executed this Agreement effective as of the Effective Date.

		
	EMULEX CORPORATION
	BROADCOM CORPORATION

		
	By: _______________________________________
	    By: _______________________________________

		
	Name: _____________________________________
	    Name: _____________________________________

		
	Title: ______________________________________
	    Title: ______________________________________

[Signature Page to the Dismissal and Standstill Agreement]

 

Confidential portions of this Exhibit marked as [**] have been omitted pursuant to a request for confidentiality and filed separately with the Securities and Exchange Commission. 

EXHIBIT A

FORM OF DISMISSAL WITHOUT PREJUDICE

	
		
	WILLIAM F. LEE
(admitted pro hac vice)
(william.lee@wilmerhale.com)
DOMINIC E. MASSA
(admitted pro hac vice)
(dominic.massa@wilmerhale.com)
JOSEPH J. MUELLER
(admitted pro hac vice)
(joseph.mueller@wilmerhale.com)
LOUIS W. TOMPROS
(admitted pro hac vice)
(louis.tompros@wilmerhale.com
WILMER CUTLER PICKERING
HALE AND DORR LLP
60 State Street
Boston, MA 02109
Telephone: (617) 526-6000
Facsimile: (617) 526-5000

Attorneys for Plaintiff and
Counterclaim Defendant
BROADCOM CORPORATION
	Juanita R. Brooks (SBN 75934)
  brooks@fr.com
FISH & RICHARDSON P.C.
12390 El Camino Real
San Diego, California 92130
Telephone: (858) 678-5070
Facsimile: (858) 678-5099

David M. Barkan (SBN 160825)
  barkan@fr.com
Jonathan J. Lamberson (SBN 239107)
  lamberson@fr.com
FISH & RICHARDSON P.C.
500 Arguello Street, Suite 500
Redwood City, California 94063
Telephone: (650) 839-5070
Facsimile: (650) 839-5071

Attorneys for Defendant and Counterclaim Plaintiff
EMULEX CORPORATION

UNITED STATES DISTRICT COURT
CENTRAL DISTRICT OF CALIFORNIA, SOUTHERN DIVISION

	
		
	BROADCOM CORPORATION,

          Plaintiff,

v.

EMULEX CORPORATION,

          Defendant.

And Related Counterclaims
	Case No. CV 09-1058-JVS (ANx)
consolidated with CV 10-3963 JVS (ANx)

JOINT STIPULATION TO DISMISS CLAIMS WITHOUT PREJUDICE AND VACATE TRIAL DATE

Hon. James V. Selna 

Trial Date:  September 9, 2014

JOINT STIPULATION TO DISMISS CLAIMS 
WITHOUT PREJUDICE AND VACATE TRIAL DATE
Case No. CV 09-1058-JVS (ANx)
consolidated with CV 10-3963 JVS (ANx)

JOINT STIPULATION OF DISMISSAL WITHOUT PREJUDICE
Broadcom Corporation (“Broadcom”) and Emulex Corporation (“Emulex”), through their respective counsel of record, hereby stipulate as follows.
On March 31, 2014, the parties reached an agreement whereby Broadcom agreed to dismiss without prejudice its claims that the Emulex Lancer, BE2, BE3, and QT2025 devices, and devices incorporating the Lancer, BE2, BE3, and QT2025, infringe U.S. Patents Nos. 6,424,194 (the “194 patent”), 7,486,124 (the “’124 patent”), and 7,724,057 (the “’057 patent”), and Emulex agreed to dismiss without prejudice its counterclaims that the ’194 patent, the ’124 patent, and the ’057 patent are not infringed and invalid.  
Accordingly, the parties respectfully request that the following counts of Broadcom’s Complaints and Emulex’s Counterclaims be dismissed without prejudice:
1.Count Six of Broadcom’s February 23, 2010 First Amended Complaint in Case No. CV 09-1058 JVS (ANx) (Infringement of the ’194 Patent); 
2.Count Eight of Broadcom’s February 23, 2010 First Amended Complaint in Case No. SACV 09-1058 JVS (ANx) (Infringement of the ’124 Patent); 
3.Count One of Broadcom’s May 26, 2010 Complaint in Case No. CV 10-3963 (Infringement of the ‘057 Patent); 
4.Emulex’s Sixth Counterclaim as set forth in its March 25, 2010 Answer, Affirmative Defenses and Counterclaims in Case No. SACV 09-1058 JVS (ANx) (Declaratory Judgment of Invalidity and Non-Infringement of U.S. Patent No. 6,424,194);
5.Emulex’s Eighth Counterclaim as set forth in its March 25, 2010 Answer, Affirmative Defenses and Counterclaims in Case No. SACV 09-1058 JVS (ANx) (Declaratory Judgment of Invalidity and Non-Infringement of U.S. Patent No. 7,486,124); and 
6.Emulex’s First Counterclaim as set forth in its June 18, 2010 Answer, Affirmative Defenses and Counterclaim in Case No. SACV 10-3963 JVS (ANx) (Declaratory Judgment of Invalidity and Non-Infringement of U.S. Patent No. 7,724,057).  
As the abovementioned counts of Broadcom’s Complaints and Emulex’s Counterclaims are the only claims that still remain to be tried in this lawsuit, with a trial date currently set for September 9, 2014, the parties respectfully request that the Court remove that trial from its calendar and vacate all associated case deadlines set forth in Docket No. 1358.  The Court may enter a final judgment with respect to all remaining claims and counterclaims. 
Subject to the Court’s approval, the parties further agree and stipulate that all costs, expenses and attorney fees with respect to the above dismissed claims and counterclaims shall be borne by the party that incurred them.
This stipulation has no impact on the Second Amended Permanent Injunction entered by the Court on July 18, 2012, which shall remain in effect.

JOINT STIPULATION TO DISMISS CLAIMS 
WITHOUT PREJUDICE AND VACATE TRIAL DATE
Case No. CV 09-1058-JVS (ANx)
consolidated with CV 10-3963 JVS (ANx)

	
			
	Dated:  April 1, 2014
	 
	WILMER CUTLER PICKERING HALE AND DORR LLP.

	 
	 
	 

	 
	By:
	 

	 
	 
	 

	 
	 
	Attorneys for Plaintiff and Counterdefendant
BROADCOM CORPORATION

	
			
	Dated:  April 1, 2014
	 
	FISH & RICHARDSON P.C.

	 
	 
	 

	 
	By:
	 

	 
	 
	 

	 
	 
	Attorneys for Defendant and Counterclaimant
EMULEX CORPORATION

JOINT STIPULATION TO DISMISS CLAIMS 
WITHOUT PREJUDICE AND VACATE TRIAL DATE
Case No. CV 09-1058-JVS (ANx)
consolidated with CV 10-3963 JVS (ANx)

UNITED STATES DISTRICT COURT
CENTRAL DISTRICT OF CALIFORNIA
(SOUTHERN DIVISION)

	
		
	BROADCOM CORPORATION,

          Plaintiff,

v.

EMULEX CORPORATION,

          Defendant.

And Related Counterclaims
	Case No. CV 09-1058-JVS (ANx)
consolidated with CV 10-3963 JVS (ANx)

[PROPOSED] ORDER ON JOINT STIPULATION TO DISMISS CLAIMS WITHOUT PREJUDICE AND VACATE TRIAL DATE

Pursuant to Local Rule 7-1, Broadcom Corporation (“Broadcom”) and Emulex Corporation (“Emulex”) filed a stipulation on April 1, 2014 whereby Broadcom agreed to dismiss without prejudice its claims relating to United States Patents Nos. 6,424,194 (the “’194 patent”), 7,486,124 (the “’124 patent”), and 7,724,057 (the “’057 patent”), and Emulex agreed to dismiss its counterclaims relating to these same patents.

JOINT STIPULATION TO DISMISS CLAIMS 
WITHOUT PREJUDICE AND VACATE TRIAL DATE
Case No. CV 09-1058-JVS (ANx)
consolidated with CV 10-3963 JVS (ANx)

ORDER
Based on the above-referenced stipulation of the parties, and good cause appearing, IT IS ORDERED that the following counts of Broadcom’s Complaints and Emulex’s Counterclaims are hereby dismissed without prejudice:
1.Count Six of Broadcom’s February 23, 2010 First Amended Complaint in Case No. CV 09-1058 JVS (ANx) (Infringement of the ’194 Patent); 
2.Count Eight of Broadcom’s February 23, 2010 First Amended Complaint in Case No. SACV 09-1058 JVS (ANx) (Infringement of the ’124 Patent); 
3.Count One of Broadcom’s May 26, 2010 Complaint in Case No. CV 10-3963 (Infringement of the ‘057 Patent); 
4.Emulex’s Sixth Counterclaim as set forth in its March 25, 2010 Answer, Affirmative Defenses and Counterclaims in Case No. SACV 09-1058 JVS (ANx) (Declaratory Judgment of Invalidity and Non-Infringement of U.S. Patent No. 6,424,194);
5.Emulex’s Eighth Counterclaim as set forth in its March 25, 2010 Answer, Affirmative Defenses and Counterclaims in Case No. SACV 09-1058 JVS (ANx) (Declaratory Judgment of Invalidity and Non-Infringement of U.S. Patent No. 7,486,124); and 
6.Emulex’s First Counterclaim as set forth in its June 18, 2010 Answer, Affirmative Defenses and Counterclaim in Case No. SACV 10-3963 JVS (ANx) (Declaratory Judgment of Invalidity and Non-Infringement of U.S. Patent No. 7,724,057).  
As the abovementioned counts of Broadcom’s Complaints and Emulex’s Counterclaims are the only claims that still remain to be tried in this lawsuit, the trial currently scheduled for September 9-16, 2014 is hereby VACATED, and all case deadlines set forth in Docket No. 1358 are also VACATED.  
It is furthered ORDERED that all costs, expenses and attorney fees with respect to the above dismissed claims and counterclaims are to be borne by the party that incurred them.
This Order has no impact on the Second Amended Permanent Injunction entered July 18, 2012, which shall remain in effect.

	
		
	Dated: _______________________
	_________________________________________
Hon. James V. Selna
United States District Court

 

JOINT STIPULATION TO DISMISS CLAIMS 
WITHOUT PREJUDICE AND VACATE TRIAL DATE
Case No. CV 09-1058-JVS (ANx)
consolidated with CV 10-3963 JVS (ANx)ENGAGEMENT AGREEMENT
	 
	 
	THIS AGREEMENT made as of the 28th
day of April 2014.

 

	BETWEEN:	 	 
	 	INDIE GROWERS ASSOCIATION INC.	 
	 	(the “Company)	 
	 	 	OF THE FIRST PART
	 	 	 
	AND:	 	 
	 	ARNIE DE WITT III	 
	 	(the “Director”)	 
	 	 	OF THE SECOND PART

 

WHEREAS:

 

	A.		The Director is experienced in branding, marketing, social media, advertising, and
sales.

 

	B.		The Company wishes to engage the Director on the terms and conditions of this Agreement.

 

NOW THEREFORE THIS AGREEMENT WITNESSES
that in consideration of the material promises and conditions contained in this Agreement, the Company and the Director agree as
follows:

 

	1.		Engagement

 

			The Company hereby engages the Director and the Director hereby accepts the engagement upon
                                                                            the terms and conditions hereinafter set forth.

 

	2.		Period of Engagement

 

			Subject to the provisions for termination as hereinafter provided, the term of the
                                                                            engagement shall be for three years from the date of this Agreement, and shall be automatically renewable each year
                                                                            thereafter, unless one or both parties advise otherwise at least 30 days prior to the renewal. The parties shall re-negotiate
                                                                            all renewals and amendments thereto in good faith, on the basis of the Company’s cash flow, operations, other
                                                                            management, and ability to pay.

 

 

	3.		Services

 

			The Director agrees to serve in the position and carry out the duties and responsibilities of
                                                                            a Director as part of the Board of Directors of the Company, and perform such other services as may be reasonably
                                                                            designated from time to time by the Company. The Director specifically agrees that he will be available for at least one
                                                                            pre-scheduled teleconference meeting per week and one in-person meeting per month. The Director will provide exclusive and
                                                                            unfettered access to his entire professional network and business circle, work exclusively at developing the business of the
                                                                            Company, and providing the Company exclusive access to his network of contacts and industry related business opportunities
                                                                            including title and interest in all industry related and relationships he has developed.

    	 

    	 

    

	4.		Compensation

 

			For all services rendered by the Director under this Agreement, the Company shall pay the
                                                                            Director:

 

	a.		one-time issuance of 10,000,000 restricted shares upon signing of this agreement for
the entire three year period on the basis of 277,777 restricted shares a month. Any termination by either party under the three
year period will result in a calculation of months worked and the remaining shares will be cancelled and delivered back to Treasury

 

 

	5.		Expenses

 

			The Company shall reimburse the Director for all pre-approved out of pocket expenses.

 

	6.		Termination of Engagement

 

	(a)		Termination by the Company

 

			The Company may at any time during the Period of Engagement terminate this Agreement
                                                                            for cause, without notice and without liability for any claim, action or demand upon the happening of one or more of the
                                                                            following events:

 

	(i)		if the Director fails or refuses, repeatedly, to comply in any material respect with
the reasonable policies, standards or regulations of the Company established from time to time in writing and in accordance with
this Agreement;

 

	(ii)		if the Director fails to perform in any material respect his duties determined by
the Company in accordance with this Agreement and consistent with the customary duties of the Director’s engagement;

 

	(iii)		if the Director conducts himself in a wilfully dishonest, or an unethical or fraudulent
manner that materially discredits the Company or is materially detrimental to the reputation, character or standing of the Company;
or

 

	(iv)		if the Director conducts any unlawful or criminal activity, which activity materially
discredits the Company or is materially detrimental to the reputation, character or standing of the Company.

 

Notwithstanding the above, the Company
may at any time during the Period of Engagement terminate this Agreement with 30 days written notice.

 

	7.		Property of the Company

 

			The Director hereby acknowledges and agrees that all personal property, including
                                                                            without limitation, all books, manuals, records, reports, notes, contracts, lists, and other documents, proprietary
                                                                            information (as defined below), copies of any of the foregoing, and equipment furnished to or prepared by the Director in the
                                                                            course of or incidental to his engagement, including, without limitation, records and any other materials pertaining to the
                                                                            Company or its business, belonging to the Company shall be promptly returned to the Company upon termination of
                                                                            Agreement.

    	 

    	 

    

	8.		Proprietary Information and Non-Competition

 

	(a)		Proprietary Information
	 	 	 
			"Proprietary Information" means information about the Company disclosed
to the Director, known by the Director or developed by the Director, alone or with others, in connection with his engagement by
the Company, which is not generally known to the industry in which the Company is or may become engaged about the Company's products,
processes, and services, including but not limited to, information relating to customers, sources of supply, personnel, sources
or methods of financing, marketing, pricing, merchandising, interest rates, or sales.

 

	(b)		Non-Disclosure of Proprietary Information
	 	 	 
			The Director acknowledges that all Proprietary Information is received or developed by him in
                                                                            confidence and is the property of the Company. During the period of engagement and thereafter, the Director will not,
                                                                            directly or indirectly, except as required by the normal business of the Company or expressly consented to in writing by the
                                                                            Company:

 

	(i)		disclose, publish or make available, other than to an authorized Director, officer,
or director of the Company, any Proprietary Information;
	 	 	 
	(ii)		sell, transfer or otherwise use or exploit any Proprietary Information;
	 	 	 
	(iii)		permit the sale, transfer, or use or exploitation of any Proprietary Information by
any third party; or

	 	 	 
	(iv)		retain upon termination or expiration of the Period of Engagement any Proprietary
Information, any copies thereof or any other tangible or retrievable materials containing or constituting Proprietary Information.

 

	(c)		Disclosure of Proprietary Information
	 	 	 
			If, at any time, the Director becomes aware of any unauthorized access, use, possession or
                                                                            knowledge of any Proprietary Information, the Director shall immediately notify the Company. The Director shall provide
                                                                            all reasonable assistance to the Company to protect the confidentiality of any such Proprietary Information that the Director
                                                                            may have directly or indirectly disclosed, published or made available to third parties in breach of this Agreement,
                                                                            including, but not limited to, reimbursement for any and all solicitor's fees that the Company may incur to protect its
                                                                            rights therein. The Director shall take all reasonable steps requested by the Company to prevent the recurrence of such
                                                                            unauthorized access, use, possession or knowledge.

 

	(d)		Interference with Business
	 	 	 
			During the Period of Engagement, the Director shall devote sufficient time, ability and
                                                                            attention to the business of the Company. During the Period of Engagement, the Director shall not, directly or indirectly,
                                                                            compete or assist any third party in competing with the Company. Following the Period of Engagement, the Director shall
                                                                            not:

			

	(i)		employ any Proprietary Information for himself or in the service of others or interfere
with the Company's relationship with its clients, purchasers or suppliers;

 

	(ii)		use Proprietary Information to solicit business for himself or in the service of others
from clients, suppliers or purchasers of the Company;

    	 

    	 

    

	(iii)		in any way breach the confidence that the Company has placed in the Director;

 

	(iv)		misappropriate any Proprietary Information; or

 

	(v)		breach any of the provisions of this section.

 

	9.		Assignment, Successors and Assigns

			The Director agrees that he will not assign, transfer or otherwise dispose of any rights or
                                                                            obligations under this Agreement. Any such purported assignment or transfer shall be null and void. Nothing in this
                                                                            Agreement shall prevent the consolidation of the Company with, or its merger into, any other corporation, or the sale by the
                                                                            Company of all or substantially all of its properties or assets, or the assignment by the Company of this agreement and the
                                                                            performance of its obligations hereunder to any successor in interest or any affiliated company. Subject to the foregoing,
                                                                            this Agreement shall be binding upon and shall enure to the benefit of the parties and their respective heirs, legal
                                                                            representatives, successors, and permitted assigns, and shall not benefit any person or entity other than those enumerated
                                                                            above.

 

	10.		Policy

The Director agrees to familiarize himself with the company’s policies and agrees to abide by these policies.

 

	11.		Compliance With Laws

 

			The Director agrees to comply with all applicable securities and other laws,
                                                                            regulations, policies, blanket rulings and prescribed forms of each applicable provincial or other jurisdiction in which the
                                                                            Director works in.

 

	12.		Conflicts of Interest

 

			The Director agrees to avoid any action or interest that conflicts or gives the appearance of
                                                                            a conflict with the Company’s interests. A “conflict of interest” exists whenever an individual’s
                                                                            private interests interfere or conflict in any way (or even appear to interfere or conflict) with the interests of the
                                                                            Company. A conflict situation can arise when an Director, officer or director takes actions or has interests that may make it
                                                                            difficult to perform his or her work for the Company objectively and effectively. Conflicts of interest may also arise when
                                                                            an Director, officer or director or a member of his or her family receives improper personal benefits as a result of his or
                                                                            her position with the Company, whether from a third party or from the Company.
	 	 	 
			In order to avoid potential conflict of interest, the director agrees to not
                                                                            personally receive to themselves any payments, compensation or gifts, other than gifts of nominal value, from any entity or
                                                                            person that does business or seeks to do business with the Company, If any payment or compensation is offered to the Director
                                                                            from any other party the Director must transfer the payment or compensation to the Company
	 	 	 
			The Director agrees to not use
                                                                                                                                         Company property, Company information or their position in the Company to further there own personal opportunities if it
                                                                                                                                         comes at the expense of the good of the Company. The Director agrees to advance the Company’s interests when the
                                                                                                                                         opportunity to do so arises and that they will not personally or in conjunction with another party compete against the
                                                                                                                                         Company.

    	 

    	 

    

	13.		General Provisions

 

	(a)		Any notices to be given hereunder by either party to the other shall be in writing
and may be transmitted by personal delivery or by mail, registered or certified, postage prepaid with return receipt requested.
Mailed notices shall be addressed to the parties at the address appearing in the introductory section of this Agreement, but each
party may change that address by written notice in accordance with this section. Notice delivered personally shall be deemed communicated
as of the date of actual receipt; mailed notices shall be deemed communicated two days after the date of mailing.
	 	 	 
	(b)		This Agreement supersedes any and all other agreements, either oral or in writing,
between the parties hereto with respect to the engagement of the Director by the Company, and contains all of the covenants and
agreements between the parties with respect to that engagement in any manner whatsoever. Each party to this Agreement acknowledges
that no representations, inducements, promises, or agreements, orally or otherwise, have been made by any party, or anyone acting
on behalf of any party, which are not embodied herein, and that no other agreement, statement or promise not contained in this
Agreement shall be valid or binding on either party.
	 	 	 
	(c)		The parties hereto agree and warrant to use best efforts, due diligence, and to maintain
full disclosure of all matters of the business and conduct of the parties in respect to this Agreement.
	 	 	 
	(d)		The parties hereunto agree and acknowledge that they have each sought separate counsel
because the effects of this Agreement are material to their fortunes, and the consequences of this Agreement are onerous, far
reaching and engage serious obligations.
	 	 	 
	(e)		Any modification of this Agreement will be effective only if it is in writing and
signed by the party to be bound thereby.
	 	 	 
	(f)		The failure of either party to insist on strict compliance with any of the terms,
covenants, or conditions of this Agreement by other party shall not be deemed a waiver of that term, covenant or condition, nor
shall any waiver or relinquishment of any right or power at any one time or times be deemed a waiver or relinquishment of that
right to power for all or any other times.
	 	 	 
	(g)		If any provision to this Agreement is held by a court of competent jurisdiction to
be invalid, void or unenforceable, the remaining provisions shall nevertheless continue in full force without being impaired or
invalidated in any way.
	 	 	 
	(h)		This Agreement shall be governed by and construed in accordance with the laws and
courts of the State of Nevada.
	 	 	 
	(i)		The parties hereto agree to execute and to cause to be effected such additional documents
or matters as shall be required to fully and effectually achieve the intent hereof and to achieve matters collateral hereto including,
but not limited to necessary corporate resolutions, necessary regulatory filings, specific management agreements, or such other
matters required between the parties that are necessary to effect the intent of this Agreement and matters collateral.

 

    	 

    	 

    

 

IN WITNESS WHEREOF the parties have
duly executed this Agreement as of the date first written above.

 

	INDIE GROWERS ASSOCIATION INC.	 
	 	 
	 	 
	Robert Coleridge - Authorized Signatory 	 
	 	 
	SIGNED AND DELIVERED by	 
	 	 
	ARNIE DE WITT III

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