Document:

EXHIBIT 10.1

TECHNOLOGY LICENSE AND ASSET PURCHASE AGREEMENT

This TECHNOLOGY LICENSE AND
ASSET PURCHASE AGREEMENT (this “Agreement”)
is made and entered into as of this 6th day of June, 2006 , by and between
Broadcom Corporation, a California corporation (“Broadcom”), and Ciprico Inc., a Delaware corporation (“Ciprico”). Broadcom and Ciprico may be
referred to from time to time in this Agreement, individually, as a “Party “ and, collectively, as the “Parties.”

BACKGROUND

A.            Broadcom owns certain assets that are used in connection
with Broadcom’s Business.

B.            Broadcom desires to sell, and Ciprico desires to
purchase, certain of such assets of the Business in accordance with the terms
and conditions set forth in this Agreement.

C.            Broadcom desires to grant and Ciprico desires to receive
licenses relating to certain other of such assets of the Business, subject to
and in accordance with the terms and conditions set forth in this
Agreement.

D.            Broadcom desires Ciprico to assume certain existing
support obligations relating to the Business, and to undertake certain
development obligations relating to the Business, and Ciprico is willing to
assume and undertake such obligations in accordance with the terms and
conditions set forth in this Agreement.

NOW, THEREFORE, in consideration of the mutual promises
contained in this Agreement and for other good and valuable consideration, the
receipt and sufficiency of which is hereby acknowledged, and intending to be
legally bound, the Parties agree as follows:

ARTICLE I

PURCHASE AND SALE

1.1           Purchase and Sale of Assets. Subject to all the terms and conditions of
this Agreement, Broadcom shall, on the Closing Date, sell, transfer, convey and
assign to Ciprico the following operating assets of Broadcom used or held for
use in the Business, (collectively, the “Purchased Assets”).

(a)          Fixed
Assets. All fixed assets
set forth on Schedule 1.1(a) hereto (collectively, the “Fixed Assets”);

(b)         Inventory.
All inventories of the
Business set forth on Schedule 1.1(b) hereto, (collectively, the “Inventory”) which excludes all work
in progress for Broadcom integrated circuits and all inventories of Broadcom
integrated circuits not already attached to inventories of RAID Controller
Cards;

(c)          Prepaid
Assets and Deposits. Prepaid
assets and deposits, if any, as set forth on Schedule 1.1(c) hereto,
with respect to which Ciprico will receive the benefit after the Closing;

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(d)         Contracts.
All rights of Broadcom under
those contracts relating to the Business that are set forth on Schedule 1.1(d) hereto
(the “Assumed Contracts”);

(e)          Customer
and Supplier Lists. All
customer and supplier lists of the Business, and any formal notices or written
correspondence (excluding emails) from those customers and suppliers relating
to the Business; and

(f)            Marketing Materials.
All marketing materials and related literature currently used by Broadcom
in marketing the Business.

1.2           Excluded Assets.
Broadcom retains all right, title and interest in and to any and all
property, rights or other assets that are not specifically included as
Purchased Assets, whether or not related to the Business. Without limitation of
the foregoing, Broadcom retains all right, title and interest in and to all
cash and cash equivalents, accounts receivable, communications equipment and infrastructure.

1.3           Assumed Liabilities.

(a)           Subject to all the terms and conditions of this Agreement,
Ciprico shall, on the Closing Date, accept the assignment from Broadcom of the
Assumed Contracts, and expressly assume the due and punctual performance and
observance of each covenant, condition and obligation of Broadcom under such
Assumed Contracts (collectively the “Assumed Liabilities”). For clarity,
Ciprico does not assume liability for any breach by Broadcom of any Assumed
Contract prior to the Closing, and such liability remains with Broadcom.

(b)           Without limitation of the above, the Assumed Liabilities
will include all existing support and warranty obligations of Broadcom under
all prior purchases of RAID Controller Card products and all prior licenses of
Licensed Software. Schedule 1.3 hereto contains a list of all such
existing support and warranty obligations, that to Broadcom’s knowledge,
constitute obligations in excess of $10,000 per customer.

(c)           Ciprico assumes no liabilities, covenants or obligations
of Broadcom that are not specifically included as Assumed Liabilities, whether
or not related to the Business.

ARTICLE
II

LICENSES

2.1  License Grants. Subject to
strict compliance with the terms and conditions of this Agreement, including
without limitation Ciprico’s payment, support and development obligations,
Broadcom hereby grants to Ciprico, for the Term, a personal, non-transferable,
worldwide, royalty-bearing license to:

(a)          use, reproduce, modify and create derivative works of the
Licensed Software in both source code and object code form, and to distribute
and sublicense copies of the Licensed Software or derivative works thereof only
in object code form;

(b)         use, reproduce, modify and create derivative works of the
Licensed Board Designs, and to make, have made, use, import and sell RAID
Controller Cards based on the Licensed Board Designs; and

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(c)          use, reproduce, publicly perform and publicly display the
Licensed Marks in connection with the marketing and sale of RAID Software and
RAID Controller Cards incorporating the Licensed Software.

2.2  Limited Exclusivity.

(a)          Subject to Subsection 2.2(c) below, the license in
Subsection 2.1(a) will be exclusive with respect to the field of RAID
Software; provided, however, that Broadcom nonetheless will retain the
following rights with respect to the Licensed Software in the field of RAID
Software:

(i) to use the Licensed
Software and Improvements thereof, in source code and object code form, to
evaluate, test and demonstrate the compatibility of Broadcom’s products with
the Licensed Software and such Improvements;

(ii) to distribute the
Licensed Software and Improvements in object code form to customers for
evaluation purposes only; and

(iii) subject to the
provisions of Section 3.3 below, to distribute and license the Licensed
Software and Improvements, in object code form only, to customers for use in
production with Broadcom integrated circuits.

(b)         Subject to Subsection 2.2(c) below, the licenses in
Subsections 2.1(b) and 2.1(c) will be exclusive for their respective
durations (in perpetuity unless earlier terminated).

(c)          For clarity, Broadcom and Ciprico agree and acknowledge
that the exclusivity obligations set forth in this Section 2.2 are meant
to govern Broadcom’s conduct after the Closing and during the period of
exclusivity, and do not constitute a representation or warranty that no other
licenses to the Licensed Technology have been granted previously. Ciprico
acknowledges that Broadcom and its predecessors in interest previously have granted
licenses to the Licensed Technology to other third parties, and all such
licenses will remain in full force and effect after the Closing.

2.3  License Restrictions.

(a)          No other use, distribution or application of the Licensed
Technology by Ciprico is permitted except those expressly provided in Section 2.1.

(b)         Ciprico represents and warrants that it will not take any
action that would create obligations that would conflict with Ciprico’s
obligations hereunder, including without limitation, creating and/or
distributing derivative works of the Licensed Software that contain code
licensed under a Prohibited License (as defined below) or that would require
any portion of the Licensed Software to be distributed pursuant to a Prohibited
License.

(c)          Ciprico shall only distribute the Licensed Software or
derivative works thereof to OEMs, resellers, distributors and end users
pursuant to an End User Agreement.

2.4  Grantback License to Improvements During Term.
Ciprico (on behalf of itself and its affiliates, agents, employees, and
contractors) hereby grants to Broadcom a fully paid-up, royalty-free,
worldwide, license to use, copy, modify, have modified, distribute and have
distributed any Improvements made by or on behalf of Ciprico, subject to the
restrictions and limitations of Section 2.2, during the Term. Ciprico will
regularly provide such Improvements to Broadcom.

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2.5  Grantback License to Improvements After Term.
If Broadcom terminates this Agreement prior to three years after the Closing,
then Ciprico (on behalf of itself and its affiliates, agents, employees, and
contractors) grants to Broadcom a fully paid-up, royalty-free, worldwide,
perpetual license to use, copy, modify, have modified, distribute and have
distributed any Improvements or derivative works thereof for the sole purpose
of supporting customers of the Licensed Software at the time of termination.

2.6  Proprietary Notices. Ciprico shall
not remove, efface or obscure any copyright or trademark notices from the
Licensed Technology. Ciprico shall include reproductions of the Broadcom
copyright notice with each copy of the Licensed Technology. Ciprico
acknowledges that any symbols, trademarks, tradenames, and service marks
adopted by Broadcom to identify the Licensed Technology belong to Broadcom and
that Ciprico shall have no rights therein other than the explicit licenses
granted to Ciprico hereunder. Ciprico further acknowledges that Broadcom does
not have federal registration for the Licensed Marks, and thus Broadcom makes
no representation or warranty that (i) the Licensed Marks will be
enforceable against third parties; or that (ii) use of the Licensed Marks
will not infringe the marks of a third party. Ciprico acknowledges that
enforceability of the Licensed Marks depends in part on Ciprico’s proper use
and protection of the Licensed Marks.

2.7  Ownership. Broadcom shall retain
all right, title and interest, including any and all intellectual property
rights, in and to the Licensed Technology. Ciprico shall retain all right,
title and interest, including any and all intellectual property rights, in and
to the Improvements made by or on behalf of Ciprico. Ciprico hereby covenants
that it will not allege or assert any claim that the Licensed Technology
infringes any intellectual property right owned or controlled by Ciprico, or
allege or assert that any of Broadcom’s intellectual property rights in the
Licensed Technology is invalid or unenforceable.

2.8  No Other Rights Granted. Apart from
the license rights expressly set forth in this Agreement, Broadcom does not
grant and Ciprico does not receive any right, title or interest nor any
security interest or other ownership interest in any intellectual property
rights relating to the Licensed Technology, nor in any copy of any part of the
foregoing. Broadcom reserves any and all rights not expressly granted to
Ciprico hereunder. Apart from the license rights expressly set forth in this
Agreement, Ciprico does not grant and Broadcom does not receive any right,
title or interest nor any security interest or other ownership interest in any
intellectual property rights relating to the Improvements, nor in any copy of
any part of the foregoing. Ciprico reserves any and all rights not expressly
granted to Broadcom hereunder.

ARTICLE III

PAYMENT

3.1  Purchase
Price. As payment for
the sale, transfer and assignment of the Purchased Assets, and for other of
Broadcom’s agreements and indemnities contained herein, Ciprico shall pay to
Broadcom at the Closing, by wire transfer of immediately available funds to an
account designated by Broadcom (collectively, the “Purchase Price”) , the
aggregate cash sum of ***. In addition, Ciprico shall pay to Broadcom, by wire
transfer of immediately available funds to an account designated by Broadcom,
the additional sum of *** for the inventory set forth in Schedule 1.1(b), which
will be paid within fifteen (15) days after Ciprico’s receipt of such inventory.
Ciprico will have the right to return any defective portions of inventory for a
credit or refund.

3.2  Royalties. Ciprico shall pay to
Broadcom royalty payments based on the Revenues for all sales of RAID
Controller Cards by or for Ciprico. Such royalties will be calculated as a
percentage of

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the Revenue recorded by Ciprico, and will be paid
quarterly within 30 days of the end of the respective calendar quarter. Royalty
payments will be accompanied by reports identifying the applicable products,
quantities and Revenues of Ciprico. The amount of such royalties payable to
Broadcom will be determined pursuant to the following table:

	
   

  	
  Dollar Amount of Revenues

  	
   

  	
  Royalties Payable

  
	
   

  	
  in Each 12-Month
  Period

  	
   

  	
  to Broadcom

  
	
   

  	
  following the
  Closing

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  up to $2,000,000

  	
   

  	
  *** of Revenue

  
	
   

  	
  $2,000,000-$5,000,000

  	
   

  	
  *** of Revenue

  
	
   

  	
  $5,000,000-$10,000,000

  	
   

  	
  *** of Revenue

  
	
   

  	
  $10,000,000 and
  above

  	
   

  	
  *** of Revenue

  

 

Ciprico’s obligation to pay royalties to Broadcom
pursuant to this Section 3.2 shall cease when Ciprico’s royalty payments
reach twenty-five million dollars ($25,000,000) in the aggregate (the “Royalty
Cap”), and thereafter Ciprico’s licenses under this Agreement will become
royalty-free (but still subject to commissions pursuant to Section 3.3),
perpetual and non-terminable.

3.3  Commissions.

(a)          During the Term, Broadcom will earn a commission in an
amount equal to *** of all Revenue related to the Licensed Software (other than
distributions of the Licensed Software incorporated with RAID Controller Cards,
which shall be covered by Section 3.2 above) (the “Commission”), whether
licensed by Broadcom or Ciprico, for operation with a Broadcom integrated
circuit product.

(b)         For such distributions of the Licensed Software made by
Broadcom, Broadcom will collect the Revenue for such Licensed Software
licenses, and on a quarterly basis will forward such Revenue to Ciprico less
the Commission thereon which Broadcom shall retain, along with a quarterly
report identifying the applicable quantities and Revenues related thereto . The
quarterly payment and report will be made within thirty (30) days after the end
of the applicable calendar quarter.

(c)          For such distributions of the Licensed Software by Ciprico,
Ciprico will collect the Revenue for such Licensed Software licenses, and on a
quarterly basis will forward the Commission thereon to Broadcom, along with a
quarterly report identifying the applicable quantities and Revenues related
thereto. The quarterly payment and report will be made within thirty (30) days
after the end of the applicable calendar quarter. For clarity, Ciprico will owe
no such commission on licenses of the Licensed Software for use with
non-Broadcom integrated circuits.

3.4  Taxes. All amounts payable
under this Agreement are exclusive of all taxes, duties, customs fees, and
other similar government charges and fees or customs fees (other than taxes
levied on Broadcom’s income) that Broadcom may be required to collect or pay
upon purchase, sale or shipment of Licensed Technology. If Ciprico wishes to
claim a tax exemption, Ciprico must give Broadcom a tax exemption certificate
acceptable to the relevant taxing authority. Without limitation of the above,
Ciprico agrees that it will pay to Broadcom all sales tax applicable to the
sale of the Purchased Assets.

3.5  Warrants. Ciprico shall grant
to Broadcom the warrants to purchase nine hundred thousand (900,000) shares of
Common Stock of Ciprico (“Shares”) set forth in Exhibit C hereto.

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3.6  Records; Audit Rights. During
the term of this Agreement and for a period of two (2) years after
expiration or termination of this Agreement, Ciprico agrees to keep all usual
and proper records and books of account and all usual and proper entries
relating to this Agreement in accordance with generally accepted accounting
principles. Ciprico additionally will be responsible for establishing processes
and practices to ensure that its sublicensees accurately report and pay for
their use of the Licensed Software. Broadcom may conduct an audit of Ciprico’s
records and Ciprico’s sublicensee’s records, including such financial and other
business records as may be relevant to allow Broadcom to confirm Ciprico’s
compliance with the terms of this Agreement and the correctness of all payments
made or due to Broadcom hereunder. This Section 3.6 shall apply
reciprocally to permit Ciprico to audit Broadcom, to the extent that Broadcom
collects Revenues for the production distribution of the Licensed Software
pursuant to Section 3.3(b).

3.7  Audit Procedures. Any such
audit will be conducted by an auditor designated by Broadcom or by an
independent certified public accountant selected by Broadcom, and will be
conducted only with  reasonable advance
written request no more than twice in any twelve (12) month period, unless an
underpayment as described below is found, in which case Broadcom may conduct an
additional audit following each such finding during the same twelve (12) month
period. The audit will be conducted during regular business hours and will be
conducted in such a manner as not to unreasonably interfere with Ciprico’s
normal business activities.  Broadcom
agrees that it shall be responsible for the payment of the reasonable fees and
costs of the auditor unless: (a) with respect to provisions of this
Agreement, the auditor determines that Ciprico has underpaid Broadcom hereunder
by an amount in excess of five percent (5%) of the amounts actually due; or (b) with
respect to the Section 3.5, the auditor determines that Ciprico should
have issued warrants to Broadcom but failed to do so. Ciprico will refund
Broadcom any overcharges and will reimburse Broadcom for audit costs incurred
as a result of the previous sentence within thirty (30) days of Broadcom’s
receipt of an invoice for such fee. Broadcom recognizes and agrees that
information learned during an audit is confidential and that such information
may be used only in further disposition of the audit. This Section 3.7
shall apply reciprocally to any audit by Ciprico of Broadcom pursuant to Section 3.6
above.

ARTICLE IV

SUPPORT

4.1           Support
by Broadcom. Broadcom agrees that it will make available Jeff
Huber, Charles Purwin, and Richard Bagley (the “Identified Employees”) to
assist Ciprico in supporting the Licensed Technology and/or assisting in the
transition of the Licensed Technology to Ciprico; provided, however, that such
availability will be limited to only ten (10) hours per week for each such
Identified Employee, and only one hundred (100) hours total for each such
Identified Employee, and all obligations under this Section 4.1 will
expire on October 1, 2006.  Broadcom’s
obligations under this Section 4.1 are subject to the Identified Employees
remaining active employees in good standing with Broadcom. Except as expressly
set forth in Sections 4.1 and 7.3, nothing in this Agreement shall obligate
Broadcom to provide any support for the Licensed Technology to Ciprico, its
customers and sublicensees, or any other person.

4.2           Support
to Existing Customers by Ciprico. Ciprico hereby agrees to
support the Licensed Software and RAID Controller Cards and assume
responsibility for all existing support and warranty commitments for the Licensed
Software and RAID Controller Cards, at its sole expense, for a period of three (3) years
after the Closing Date. Ciprico will perform its support obligations in
compliance with all of the existing warranties for the Licensed Software and
RAID Controller Cards and the minimum support requirements for the Licensed
Software and RAID Controller Cards, as described in the attached Exhibit D.
Ciprico further
agrees and acknowledges that its failure to provide the support as 

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described in this Section 4.2
shall constitute a material breach of the Agreement subject to the cure period
described in Section 11.2(b).

4.3           Support
to Distributors and End Users by Ciprico. Ciprico shall, at its
own expense, be solely responsible for providing technical support and training
to its distributors and the end users of the Licensed Technology for the
Licensed Technology, and Broadcom shall have no obligation with respect thereto.
Ciprico shall be solely responsible for, and Broadcom shall have no obligation
to honor, any warranties that Ciprico provides to its distributors and/or the
end users of the Licensed Technology with respect to the Licensed Technology. Ciprico
shall defend any claim against Broadcom arising in connection with any such
warranties, express, implied, statutory, or otherwise, and shall pay any
settlements or damages awarded against Broadcom that are based on any such
warranties.

ARTICLE V

DEVELOPMENT OBLIGATIONS

5.1           Support
for Broadcom Products. For a period of two (2) years after
the Closing Date, Ciprico will develop and support versions of the Licensed
Software that interoperate with all versions of Broadcom’s standard storage
integrated circuit products and all versions of Broadcom’s chipsets for AMD
Opteron platforms (collectively, the “Supported Chips”). Ciprico agrees that it
will use its best efforts within its resources to prioritize this development
and support activity. Ciprico further agrees and acknowledges that its failure to meet the
obligations of Section 5.1 or 5.2 shall constitute a material breach of
the Agreement subject to the cure period described in Section 11.2(a). Ciprico and Broadcom will have regular roadmap meetings, not less
than once per quarter, to discuss planned Supported Chips and planned versions
of the Licensed Software. Broadcom agrees to disclose to Ciprico the planned
functionality of any upcoming Supported Chip at least three (3) months
prior to tape-out of such Supported Chip, and will provide to Ciprico the
interface information for such Supported Chip no later than two (2) weeks
after tape-out of such Supported Chip. Notwithstanding any provision of this
Agreement, Broadcom shall have no obligation to develop or release any
Supported Chip or any other product under this Agreement, and any and all such
development shall be at Broadcom’s sole discretion.

5.2           Schedule
for Development. Without limitation of the obligations of Section 5.1
above, Ciprico will provide ported versions of the Licensed Software to
Broadcom, in object code form, in accordance with the following schedule:

Alpha version:  within 8 weeks of receipt of the reference
board with the Supported Chip including the IOC driver;

Beta version:  within 16 weeks of receipt of the reference
board with the Supported Chip including the IOC driver;

Production (gold)
version:  within 26 weeks of receipt of
the reference board with the Supported Chip including the IOC driver.

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ARTICLE VI

SUPPLY OF BROADCOM RAID
INTEGRATED CIRCUITS

6.1.          Supply. Broadcom
hereby agrees to sell to Ciprico its RAID controller chip products known as
Frodo, Elrond, and if available, Elrond-Lite through their respective
end-of-life, as the case may be, pursuant to Broadcom’s standard terms and
conditions.

6.2           Buffer Stock. Broadcom
will hold and segregate a buffer stock of *** RAID controller chip products for
Ciprico to meet Ciprico’s typical monthly supply during the term of this
Agreement. If Ciprico depletes the buffer stock, then Broadcom will refill such
buffer stock in accordance with its standard lead times. As a condition to
Broadcom’s obligations under this Section 6.2, Ciprico will maintain a
typical monthly supply of RAID controller chips in its inventory.

6.3           Pricing. Until
the end-of-life of Frodo or Elrond, as the case may be, Broadcom will sell the
RAID controller chips to Ciprico in accordance with the prices set forth in
Schedule 6.3.

6.4           Elrond-Lite Product.
The parties acknowledge that the BCM8608 (Elrond-Lite) product has not yet been
developed, and is subject to a review of joint business planning,
productization schedules, target market and the like. Nothing in this Agreement
will require Broadcom to develop or release the Elrond-Lite product to
production, and the terms of this Section 6 will apply to the Elrond-Lite
product only if Broadcom chooses in its sole discretion to develop and release
the Elrond-Lite product to production.

ARTICLE VII

OTHER OBLIGATIONS

7.1           Confidentiality. Broadcom and Ciprico acknowledge and agree
that the Licensed Technology, the Supported Chips, any Improvements, any
documentation or information relating to the Licensed Technology, any
Improvements and the Supported Chips, and any other information (if such other
information is identified as confidential or should be recognized as
confidential under the circumstances) provided to a party by the other party
hereunder (collectively, “Confidential Information”) constitute the
confidential and proprietary information of the disclosing party, that Ciprico’s
protection thereof is an essential condition to Ciprico’s license of the
Licensed Technology herein, that Broadcom’s protection thereof is an essential
condition to Broadcom’s license to the Improvements herein and that all such
Confidential Information is subject to the NDA, which shall remain in full
force and effect. Broadcom and Ciprico acknowledge and agree that this
Agreement and its contents constitute the confidential and proprietary
information of both parties. This Section 7.1 shall supplement, but not
replace the NDA.

7.2           Intentionally
Omitted.

7.3           Cooperation in Transfer. The
parties will cooperate with each other and provide reasonable assistance to
each other in the transfer of relevant customer and supply chain relationships
from Broadcom to Ciprico.

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ARTICLE VIII

REPRESENTATIONS AND
WARRANTIES

8.1           Representations and Warranties of Both Parties.
The Parties hereby represent and warrant to the other as of the Closing Date as
follows:

(a)          Each Party is
a corporation duly organized, validly existing and in good standing under the
laws of its state of incorporation. Each Party has full rights, power and
authority to enter into the Transaction Documents and to  perform all of its obligations under the Transaction
Documents.

(b)         The
Transaction Documents and the obligations of each Party under the Transaction
Documents will not conflict with, or constitute a breach or default of, any
other agreement, instrument or arrangement to which such Party is a party or by
which it is bound. Neither Party is subject to any restriction or agreement
contained in any agreement, license, instrument, order, judgment or decree
which would be violated by the consummation of the transactions contemplated by
the Transaction Documents.

8.2           Representations and Warranties of Broadcom.
Broadcom hereby represents and warrants to Ciprico as of the Closing Date as
follows:

(a)          Broadcom
is the owner absolutely of the Purchased Assets, and it has good right and
title to sell and assign the Purchased Assets as set forth in this Agreement;

(b)         The
Purchased Assets are free and clear of and from all Liens;

(c)          Except
as set forth in Schedule 8.2(c), Broadcom previously has not granted any party
a license to use, make, modify, sell, market or distribute the Licensed
Software in source code form; and

(d)         Broadcom
is the owner of the Licensed Technology and Broadcom has no Knowledge of any
proceedings which are pending or threatened which challenge the rights of
Broadcom with respect to the Licensed Technology, and to Broadcom’s Knowledge,
the Licensed Technology does not infringe the intellectual property rights of
any third party. Ciprico acknowledges that Broadcom has not conducted a patent
search relating to the Licensed Technology, and has no obligation to do so.

(e)          Except
as disclosed in Schedule 8.2(e), there is no Litigation outstanding or pending
to which Broadcom is a party with respect to the Licensed Technology or
Purchased Assets, and to the Knowledge of Broadcom, there is no Litigation
threatened against Broadcom with respect to the Licensed Technology or
Purchased Assets.

(f)          Schedule
8.2(f) contains true and correct information for the revenues and cost of
revenues of the Business for the fourth quarter of 2005 and the first quarter
of 2006.

8.3           No Other Warranties. EXCEPT AS
EXPRESSLY SET FORTH IN SECTION 8.1 AND 8.2 ABOVE, THE PURCHASED ASSETS,
THE LICENSED TECHNOLOGY AND THE LICENSED MARKS ARE OFFERED “AS IS,” AND
BROADCOM GRANTS AND CIPRICO RECEIVES NO WARRANTIES OF ANY KIND, EXPRESS OR
IMPLIED, BY STATUTE, COMMUNICATION OR CONDUCT WITH CIPRICO, OR OTHERWISE. BROADCOM
SPECIFICALLY DISCLAIMS ANY IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR A
SPECIFIC PURPOSE OR NON-INFRINGEMENT CONCERNING THE PURCHASED 

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ASSETS, THE LICENSED TECHNOLOGY OR THE LICENSED MARKS. WITHOUT
LIMITATION OF THE ABOVE, BROADCOM GRANTS NO WARRANTY THAT THE LICENSED
TECHNOLOGY, OR ANY PORTION THEREOF, IS ERROR-FREE OR WILL OPERATE WITHOUT
INTERRUPTION OR LOSS OF DATA, AND GRANTS NO WARRANTY REGARDING ITS USE OR THE
RESULTS THEREFROM INCLUDING, WITHOUT LIMITATION, ITS CORRECTNESS, ACCURACY OR
RELIABILITY.

ARTICLE IX

INDEMNITY

9.1.          Indemnification by
Broadcom. Broadcom hereby agrees to indemnify, defend and hold harmless Ciprico
and its officers, directors, employees, shareholders, and agents (collectively
the “Ciprico Indemnified Parties”) from and against, and reimburse them for,
any and all liabilities, damages awards, settlements, losses, claims and
expenses, including without limitation reasonable attorneys’ fees and expenses
and costs, incurred by or on behalf of any Ciprico Indemnified Party resulting
from, caused by, or claimed to have resulted from or arisen in connection with:
(a) any breach of this Agreement by Broadcom; (b) any use or
distribution prior to the Closing of the Licensed Technology, products
containing the Licensed Technology, or the Licensed Marks by or on behalf of
Broadcom or its customers, sublicensees or end users; or (c) any claim
under an Assumed Contract that was made prior to the Closing, except for those
warranty obligations transferred under Section 1.3. For clarity,
notwithstanding any other provision of this Agreement, Broadcom shall have no
obligation to indemnify, defend or hold harmless Ciprico Indemnified Parties
for any claim that the Licensed Technology infringes the intellectual property
rights of a third party, absent a breach by Broadcom of Section 8.2(d) herein.

9.2.          Indemnification by Ciprico. Ciprico hereby agrees
to indemnify, defend and hold harmless Broadcom and its officers, directors,
employees, shareholders, and agents (collectively the “Broadcom Indemnified
Parties”) from and against, and reimburse them for, any and all liabilities,
damages awards, settlements, losses, claims and expenses, including without limitation
reasonable attorneys’ fees and expenses and costs, incurred by or on behalf of
any Broadcom Indemnified Party resulting from, caused by, or claimed to have
resulted from or arisen in connection with: (a) any breach of this
Agreement by Ciprico; (b) any use or distribution after the Closing of the
Licensed Technology, products containing the Licensed Technology, or the
Licensed Marks by or on behalf of Ciprico or its customers, sublicensees or end
users; (c) any warranties or other commitments made by Ciprico to third
parties relating to the Licensed Technology or any products containing the
Licensed Technology; or (d) any claim under an Assumed Contract that arose
after the Closing.

9.3.          Notice of Asserted
Liability. Promptly after a Party (the “Indemnified Party”) becomes aware of any
fact, condition or event that may give rise to losses, claims, liabilities,
damages or expenses for which indemnification may be sought under this Section 9
the Indemnified Party shall give notice thereof in the manner provided in Section 12.14
of this Agreement (the “Claims Notice”) to the Party from which indemnification
may be sought (the “Indemnifying Party”). The Claims Notice shall include a
description in reasonable detail of any claim or the commencement (or threatened
commencement known to the Indemnified Party) of any action, proceeding or
investigation (an “Asserted Liability”) against the Indemnified Party. Failure
of the Indemnified Party to promptly give notice hereunder shall not affect
rights to indemnification hereunder, except to the extent that the Indemnifying
Party demonstrates actual damage caused by such failure.

9.4.          Opportunity to Defend. The Indemnifying Party
may elect to compromise or defend, at its own expense and by its own counsel,
any Asserted Liability; provided, however, that the Indemnifying Party 

 10
 

 

may not compromise or settle any Asserted Liability without the consent
of the Indemnified Party, such consent not to be unreasonably withheld or
delayed, except that no consent shall be required if such compromise or
settlement requires no more than a monetary payment for which the Indemnified
Party hereunder is indemnified or involves other matters not binding upon the
Indemnified Party; provided, however, that there is no admission of any wrongdoing
and that the settlement is accompanied by a general release in form and
substance reasonably acceptable to the Indemnified Party. If the Indemnifying
Party elects to compromise or defend such Asserted Liability, it shall within
thirty (30) days notify the Indemnified Party of its intent to do so and the
Indemnified Party shall cooperate in the compromise of, or defense against,
such Asserted Liability. If the Indemnifying Party elects not to compromise or
defend any Asserted Liability, fails to notify the Indemnified Party of its
election as herein provided or contests its obligation to indemnify, the
Indemnified Party may pay, compromise or defend such Asserted Liability without
prejudice to any right it may have hereunder. In any event, the Indemnified
Party may participate, at its own expense, in the defense of any Asserted
Liability. If either party chooses to defend or participate in the defense of
any Asserted Liability, it shall have the right to receive from the other party
any books, records or other documents within such party’s control that are
necessary or appropriate for such defense.

9.5.          Waiver of Consequential
Damages. EXCEPT FOR A BREACH BY CIPRICO OF SECTION 2, A BREACH BY EITHER
PARTY OF SECTION 7.1, OR EITHER PARTY’S INDEMNIFICATION OBLIGATIONS UNDER
THIS SECTION 9, IN NO EVENT SHALL EITHER PARTY HERETO HAVE ANY LIABILITY
FOR ANY INDIRECT, INCIDENTAL, CONSEQUENTIAL, SPECIAL OR PUNITIVE DAMAGES,
HOWEVER CAUSED AND ON ANY THEORY OF LIABILITY, WHETHER FOR BREACH OF CONTRACT,
TORT (INCLUDING NEGLIGENCE) OR OTHERWISE, ARISING OUT OF THIS AGREEMENT,
INCLUDING BUT NOT LIMITED TO LOSS OF PROFITS OR LOSS OF DATA, EVEN IF SUCH
PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. THESE LIMITATIONS
SHALL APPLY NOTWITHSTANDING ANY FAILURE OF ESSENTIAL PURPOSE OF ANY LIMITED
REMEDY.

ARTICLE X

CLOSING

10.1         Closing Date.
The closing of the transactions provided for herein is scheduled to take place
on June 6, 2006, or at such other place, time or date as the parties may
mutually agree to in writing, such date being referred to herein as the “Closing
Date” or the “Closing”.

10.2         Transfer of Possession.
On the Closing Date or shortly thereafter, Broadcom, through its officers,
agents and employees, will put Ciprico into full possession of the Purchased
Assets to be delivered at such time.

10.3         Closing Deliveries.
At or before the Closing, Broadcom will execute and deliver to Ciprico:

(a)           one or more “Bills of Sale” in the form of Exhibit A
attached hereto, conveying in the aggregate all of Broadcom’s ownership in
personal property included in the Purchased Assets (except that such bill of
sale will be delivered at the end of the transition period set forth in Exhibit E);

(b)           an “Assignment and Assumption Agreement” in the form of Exhibit B
attached hereto, with respect to the Assumed Contracts;

(c)           an “Officer’s Certificate” indicating that Broadcom’s
board of directors has approved this Agreement; and

 11
 

 

(d)           any respective third party consents and approvals required
under any of the Assumed Contracts;

At or before the Closing, Ciprico will
execute and deliver to Broadcom an “Officer’s Certificate” indicating that
Ciprico’s board of directors has approved this Agreement.

10.4         Transition Period.
Broadcom and Ciprico agree to assist each other with a transition period
relating to certain computing assets as set forth in Exhibit E hereto.

ARTICLE XI

TERM AND TERMINATION

11.1         Term. This
Agreement shall become effective as of the Closing Date and shall remain
effective unless and until terminated pursuant to this Article XI (the “Term”).

11.2         Termination. A party may, at its option (which option
shall be exercisable in its sole and absolute discretion), terminate this
Agreement for cause if any of the following occurs:

(a)           The other party materially breaches this Agreement or
fails to perform any term or condition of this Agreement (excluding Sections
4.2 or 4.3,), if such breach or failure to perform is not cured within thirty
(30) days after written notice thereof;

(b)           If Ciprico materially breaches or fails
to perform any term or condition of Section 4.2, including Exhibit D,
or Section 4.3 of this Agreement, and Ciprico fails to provide an
acceptable plan to cure the specified breach within thirty (30) days after
notice thereof or fails to begin diligently executing such plan within thirty
(30) days after the notice;

(c)           A petition in bankruptcy is filed by the other party; or a
petition in bankruptcy is filed against the other party and is not dismissed
within forty-five (45) days of filing; or a receiver, trustee in bankruptcy, or
similar officer is appointed to take charge of all or part of the other party’s
property; or the other party makes an assignment for the benefit of creditors;

(d)           The other party attempts to assign this Agreement in
violation of Section 12.7, or in the case of Ciprico, undergoes a Change
of Control with a Broadcom Competitor.

11.3         Effect Of Termination.
Upon the termination of this Agreement by either party:

(a)           If termination occurs prior to three years after Closing
and Ciprico’s royalty payments under this Agreement in the aggregate are less
than the Royalty Cap, then all rights and licenses granted to Ciprico under
this Agreement shall immediately terminate. Ciprico shall ship to Broadcom,
within ten (10) days, all tangible items in its possession or control
which are owned by or proprietary to Broadcom, including but not limited to all
Licensed Technology and Confidential Information, as well as at least one copy
of all Improvements in both source code and object code form for the purpose of
Section 2.5. Ciprico will destroy or return to Broadcom, at its option,
all other such copies in its possession or control. Ciprico will also ship to
Broadcom, within ten (10) days, all equipment necessary to support the
Software listed on Schedule 11.3(b) hereto.

(b)           If termination occurs on or after three years after
Closing and Ciprico’s royalty payments under this Agreement in the aggregate
are less than the Royalty Cap, then:

 12
 

 

(i)   If termination was for failure by Ciprico to pay any amounts owed
under this Agreement, then all rights and licenses granted to Ciprico under
this Agreement shall immediately terminate. Ciprico shall ship to Broadcom,
within ten (10) days, all tangible items in its possession or control
which are owned by or proprietary to Broadcom, including but not limited to all
Licensed Technology and Confidential Information, as well as at least one copy
of all Improvements in both source code and object code form for the purpose of
Section 2.5. Ciprico will destroy or return to Broadcom, at its option,
all other such copies in its possession or control. Ciprico will also ship to
Broadcom, within ten (10) days, all equipment necessary to support the
Software listed on Schedule 11.3(b) hereto; or

(ii)  If
termination was for a reason other than failure by Ciprico to pay any amounts
owed under this Agreement, then all rights and licenses granted to Ciprico
under Section 2 herein shall survive in perpetuity subject to Ciprico’s
continuing obligations to pay royalties and commissions under Section 3
(which shall also survive) , and subject to Broadcom’s right to terminate such
rights and licenses under Section 11.2 in the event that Ciprico fails to
meet such obligations.

(c)           If Ciprico’s royalty payments under this Agreement in the
aggregate are equal to the Royalty Cap, then all rights and licenses granted to
Ciprico under Section 2 herein shall survive in perpetuity.

(d)           Broadcom shall continue to grant Ciprico the license
pursuant to Section 2.1 for the sole purpose of allowing Ciprico to
continue to support only its existing customers and only for Licensed Software
and RAID Controller Cards shipped prior to termination, consistent with its
obligations under Section 4.3.

(e)           Termination of this Agreement shall not relieve either
party of any liability accrued prior to the date of termination, and
termination shall not affect the continued operation or enforcement of any
provision of this Agreement which is to survive termination under Section 11.5.

11.4                Not Sole
Remedy. Termination is not the sole remedy under this Agreement
and, whether or not termination is effected, all other remedies including but
not limited to the relief set forth in Section 12.16 shall remain
available.

11.5                Survival.
The provisions of Sections 2.3, 2.5, 2.6, 2.7, 2.8, 3.4, 3.6, 3.7, 4.3, 7.1, 9,
12 and 13 shall survive the termination of this Agreement. If Ciprico’s royalty
payments under this Agreement in the aggregate are equal to the Royalty Cap,
then Sections 2.1 and 2.2 shall survive the termination of this Agreement. Sections
3.1, 3.2, 3.3 and 3.5 shall survive termination, only to the extent that any
amounts payable under such sections as of the date of termination will remain
due and payable, and also to the extent set forth in Section 11.3(b)(ii).

ARTICLE XII

MISCELLANEOUS

12.1         Titles and Headings. Titles and headings in this Agreement are for
convenience only and shall not be deemed to alter or affect the construction of
any provision of this Agreement.

12.2         No Partnership or Agency. Nothing in this Agreement shall be deemed to
create or establish a joint venture, partnership, employment or agency
relationship between the Parties, and neither Party shall have the power to
obligate or bind the other Party in any manner whatsoever.

 13

 

12.3         Entire Agreement. This Agreement and the NDA constitute and
contain the entire agreement and understanding between the Parties concerning
the subject matters thereof. This Agreement supersedes and replaces any and all
prior agreements, understandings, negotiations, discussions or commitments,
whether written or oral, concerning the subject matters thereof. This is a
fully integrated agreement.

12.4         No Oral Modification.
This Agreement may be amended only by a further writing signed by the
Parties. No oral modification of any term of this Agreement shall be effective
for any purpose.

12.5         Waiver. No waiver of any breach of any term or
provision of this Agreement shall be construed to be, or shall be, a waiver of
any other breach of this Agreement. No waiver shall be binding unless in
writing and signed by the Party waiving the breach. All remedies, either under
this Agreement or by law or otherwise afforded, shall be cumulative and not
alternative.

12.6         Further Assurances. The Parties agree to cooperate fully and to
execute any and all supplementary documents and to take any and all additional
actions that may be necessary or appropriate to give full force and effect to
the terms, provisions and intentions of this Agreement.

12.7         Assignment. Neither party will be permitted to assign
this Agreement or any rights or obligations hereunder, directly or indirectly,
by operation of law or otherwise, without the other Party’s prior written
consent, and any such attempted assignment shall be void. Notwithstanding the
foregoing, Ciprico may assign this Agreement in its entirety, without Broadcom’s
consent, to a successor to all or substantially all of its business or assets
(whether by way of merger, stock purchase or purchase of assets), so long as
that successor (i) agrees in writing to be bound by this Agreement, and (ii) is
neither a Broadcom Competitor nor an affiliate of a Broadcom Competitor. In
addition, either party may assign this Agreement to a wholly-owned subsidiary
of such party upon written notice. This Agreement shall be binding on, and
shall inure to the benefit of, the Parties hereto, and their respective
successors and permitted assigns.

12.8         Severability. If any portion, part or provision of this
Agreement or the application thereof is held invalid, illegal or unenforceable
in any jurisdiction, the invalidity shall not affect other portions, parts,
provisions or applications of this Agreement which can be given effect without
the invalid portions, parts, provisions or applications, and to this end the
provisions of this Agreement are declared to be severable.

12.9         Governing Law and Venue. This Agreement shall be governed by the laws
of the State of California without regard to principles of conflict of laws,
and the United Nations Convention on Contracts for the International Sale of
Goods is hereby excluded. The sole jurisdiction and venue for actions related
to the subject matter hereof shall be the state and federal courts located in
the County of Orange, California, and both parties hereby consent to such
jurisdiction and venue.

12.10       Cooperative Drafting.
Each Party has cooperated in the drafting and preparation of this
Agreement and been represented by counsel in such drafting and preparation. Accordingly,
any rule of law, including but not limited to Section 1654 of the
California Civil Code, or any legal decision that would require interpretation
of any claimed ambiguities in this Agreement against the Party that drafted it
has no application and is expressly waived.

12.11       Attorneys’ Fees in Subsequent
Proceedings. In the
event of any litigation, arbitration or other proceeding in connection with or
concerning any of the subject matters of this Agreement, the Party in whose
favor any award or judgment shall be rendered therein shall be entitled to
recover from the other Party all reasonable expenses incurred by said
prevailing Party in the proceeding, including costs and reasonable attorneys’
fees.

 14
 

 

12.12       Parties to Bear Costs.
Each Party will be responsible for all fees and expenses (including but not
limited to the costs and fees of any attorneys or accountants) which are
incurred by such Party in connection with this Agreement and the transactions
contemplated thereby..

12.13       Publicity. Neither
Party shall make or issue any oral announcement or written statement concerning
this Agreement or the transactions contemplated by this Agreement for
dissemination to the general public without the prior written consent of the
other Party. This provision shall not apply, however, to any written statement
required to be made by law or regulations of any federal or state governmental
agency.

12.14       Notices. Unless otherwise specifically provided
herein, any notice or other communication herein required or permitted to be
given shall be in writing and may be personally served or sent by United States
mail or courier service and shall be deemed to have been given when delivered
in person or by courier service, or three business days after depositing it in
the United States mail with postage prepaid, certified delivery and properly
addressed. For the purposes hereof, any notice or other communication herein
required or permitted to be given shall be addressed as follows or to such
other address as may from time to time be designated in writing by any of the
Parties:

To Ciprico:

17400 Medina Road, #800

Plymouth, MN 55447

Attention: 
Chief Financial Officer

Fax:  (763) 551-4002

 

To Broadcom:

Broadcom Corporation

16215 Alton Parkway

Irvine, California 92618

Attention: 
General Counsel

Fax:  (949) 450-0504

 

12.15       Independent
Advice. The Parties, and
each of them, represent and warrant that:

(a)           in
entering into this Agreement, they have had the benefit and advice of their own
counsel in connection with this Agreement, and that the terms of this Agreement
have been completely read and explained to them;

(b)           this
Agreement is executed without reliance upon any statement, representation,
promise, inducement, understanding or agreement by or on behalf of either Party
or by or on behalf of any employee, representative, agent or attorney employed
by either Party, other than the matters expressly set forth herein; and

(c)           no
promise,
inducement, understanding or agreement not expressed herein has been made to
it/him/her.

 15
 

 

12.16       Equitable Relief.
Each party hereby acknowledges that its breach of Section 2 or Section 7.1
of this Agreement would cause irreparable harm and significant injury to the
other party that may be difficult to ascertain and that a remedy at law would
be inadequate. Accordingly, each party agrees that the other party shall have
the right to seek and obtain immediate injunctive relief to enforce such
obligations under the Agreement in addition to any other rights and remedies it
may have.

12.17       Execution in Counterparts.
This Agreement may be executed in any number of counterparts, each of which
when so executed shall be deemed an original and all of which shall constitute
together one and the same instrument, and shall be effective upon execution by
all of the Parties.

12.18       Export Regulations.
Each party agrees and warrants that it shall comply, at its own expense, with
the U.S. Foreign Corrupt Practices Act and all export laws, restrictions,
national security controls and regulations of the United States and any
applicable foreign agency or authority. Neither party shall export or
re-export, or authorize the export or re-export of the Licensed Technology, the
Improvements, or any other product, technology, or information that such party
obtains or learns hereunder, or any copy or direct product thereof, in violation
of any of such laws, restrictions, or regulations or without any license or
approval required thereunder.

12.20       No Third Party
Beneficiaries. The terms and provisions of this
Agreement are intended solely for the benefit of Broadcom and Ciprico and, with
respect to Section 9 only, the Ciprico Indemnified Parties and the
Broadcom Indemnified Parties, and their respective successors or permitted
assigns, and it is not the intention of the parties to confer third-party
beneficiary rights, and this Agreement does not confer any such rights.

ARTICLE XIII

DEFINITIONS

13.1         Definitions.
As used in this Agreement, the following defined terms shall have the meanings
indicated below (with correlative meanings for the singular or plural forms
thereof):

“Assumed Contracts” has the
meaning ascribed to it in Section 1.1(d).

“Broadcom” means,
collectively, Broadcom Corporation and its wholly-owned subsidiaries.

“Broadcom Competitor” means
Intel Corporation, Vitesse Semiconductor Corporation,
LSI Logic Corporation, PMC-Sierra, Inc., Marvell Semiconductor, Inc.,
and any affiliate of, or successor in interest to, any such company.

“Broadcom Indemnified
Parties” has the meaning ascribed to it in Section 9.2.

“Business” means Broadcom’s
existing business of licensing RAID software and selling RAID Controller Cards.
The Business specifically excludes Broadcom’s development, manufacture,
marketing, and sale of RAID controller integrated circuits (even though such
integrated circuits are components of Broadcom’s RAID storage controller card
products).

“Change of Control” shall
mean any change, directly or indirectly, in the power to direct the business
affairs of an entity through appointment, contract, agreement, election,
ownership of equity or otherwise. Ownership, directly or indirectly, of more
than fifty percent (50%) of the equity in an entity 

 16
 

 

shall be deemed “control” of that entity and “control” of one entity
shall be deemed control of all entities controlled by such entity. Without
limitation, “Change of Control” includes (i) any merger or consolidation
of a party with or into a third party; (ii) a sale of all or substantially
all of a party’s assets in one or a series of related transactions; (iii) completion
of a tender offer or exchange offer pursuant to which holders of a party’s
stock are permitted to tender or exchange their shares for other securities,
cash or property, or (iv) any reclassification of a party’s stock or any
compulsory share exchange pursuant to which such stock is effectively converted
into or exchanged for other securities, cash or property.

 

“Ciprico” means,
collectively, Ciprico Inc. and its wholly-owned subsidiaries.

“Ciprico Indemnified Parties”
has the meaning ascribed to it in Section 9.1.

 “Confidential Information” has the meaning
ascribed to it in Section 7.1.

“End User Agreement” means a
written, legally enforceable agreement that (i) is consistent with and
does not exceed the scope of this Agreement; (ii) stipulates that the
Licensed Software is licensed, not sold, and that title to and ownership of the
Licensed Software and any portion thereof remain with Broadcom; (iii) disclaims
all express and implied warranties on behalf of Broadcom, and exclude liability
of Broadcom for any special, indirect, exemplary, incidental or consequential
damages; and (iv) prohibits the user from (a) copying the Licensed
Software, except as reasonably necessary for internal back-up purposes, or (b) from
modifying the Licensed Software, or (c) attempting to reverse engineer,
decompile or disassemble any portion of the Licensed Software, or (e) exporting
the Licensed Software or any underlying technology in contravention of any
applicable U.S. or foreign export laws and regulations.

“Improvement(s)” shall mean
and include any and all derivative works, alterations, enhancements, revisions,
engineering changes or modifications to or related to the Licensed Software.

“Knowledge” shall mean the
actual knowledge of facts, matters or circumstances of Broadcom and all
officers and directors of Broadcom as of the Closing.

“Licensed Board Designs”
shall mean the Broadcom designs for its RAID Controller Cards, as described in
Schedule 2.1(b).

“Licensed Marks” shall mean
the marks “RaidCore,” “Hyperraid,” “Xelcoreraid,” and “Fulcrum,”, respectively,
and any renewals, extensions or foreign counterparts thereof.

“Licensed Software” shall
mean Broadcom’s RAID software stack, as described in Schedule 2.1(a).

“Licensed Technology” shall
mean only the Licensed Software and the Licensed Board Designs.

“Liens” shall mean any
security interests, pledges, mortgages, liens, deeds of trust, or conditional
sales contracts, in each case whether imposed by law, contract or otherwise.

“Litigation” means any
action, suit, arbitration, proceeding, investigation or inquiry, whether civil,
criminal or administrative, including reviews by a state agency.

 “NDA” shall mean that certain Non-Disclosure
Agreement between Broadcom and Ciprico dated February 13, 2006.

 17
 

 

“Prohibited License” shall
mean a software license that requires as a condition of use, modification,
and/or distribution of such software that such software or other software
incorporated into, derived from, linked with or distributed with such software
be (a) disclosed or distributed in source code form; (b) be licensed
for the purpose of making derivative works; or (c) be redistributable at
no charge. The “General Public License” (GPL) published by the Free Software
Foundation is an example of a Prohibited License.

“RAID Controller Cards”
means RAID cards that incorporate the Licensed Technology or any portion
thereof.

 “RAID Software” shall mean software that is
designed to control a disk storage subsystem consisting of multiple hard disk
drives to share or replicate data among the drives in accordance with industry
standard RAID (Redundant Array of Independent Drives) level definitions.

“Revenue” shall mean the
amount recorded by a party in its financial statements in accordance with
Generally Accepted Accounting Principles and consistent with such party’s
current policies. Revenue shall be calculated as gross sales amounts, less any
credits such as rebates, discounts, price adjustments, special credit terms or
the like.

“Royalty Cap” has the
meaning ascribed to it in Section 3.2.

“Shares” has the meaning
ascribed to it in Section 3.5.

“Supported Chip(s)” has the
meaning ascribed to it in Section 5.1.

“Term” has the meaning
ascribed to it in Section 11.1.

 [SIGNATURES ON FOLLOWING PAGE.]

 18
 

 

Each of the Parties signing
below has read the foregoing Agreement and accepts and agrees to the provisions
it contains and hereby executes it voluntarily with full understanding of its
consequences.

BROADCOM CORPORATION

By:  /s/ Thomas F. Lagatta                 

Name:
Thomas F. Lagatta

Title:
SR Vice President & General Manager

         Enterprise Computing Group

CIPRICO INC.

By:  /s/ James W. Hansen                   

Name:
James W. Hansen

Title: Chairman and Chief Executive Officer

 

 19EXHIBIT
10.2

THIS WARRANT, AND THE SHARES OF COMMON STOCK ISSUABLE UPON
EXERCISE HEREOF, HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED, (THE “SECURITIES ACT”) OR ANY APPLICABLE FOREIGN OR STATE
SECURITIES LAWS. THE SECURITIES REPRESENTED HEREBY MAY NOT BE OFFERED,
SOLD OR TRANSFERRED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION UNDER SUCH ACT
OR LAWS UNLESS OFFERRED, SOLD OR TRANSFERRED PURSUANT TO AN AVAILABLE EXEMPTION
FROM THE REGISTRATION REQUIREMENTS OF SUCH ACT OR LAWS.

	
  Warrant No. ___

  	
   

  

 

WARRANT

To Purchase Shares
of Common Stock of

CIPRICO
INC.

June 6,
2006

CIPRICO INC., a
Delaware corporation (the “Company”), for value received, hereby
certifies that Broadcom Corporation (the “Holder”) is entitled, subject
to the terms set forth below, upon exercise of this Warrant to purchase from
the Company such number of shares of the common stock, par value $0.01 per
share, of the Company (the “Ciprico Common Stock”) specified in Section 2(b) below
at the exercise price per share specified in Section 2(a) below (as
adjusted pursuant to the terms of this Warrant). The shares of the Ciprico
Common Stock issuable upon exercise of this Warrant, as adjusted from time to
time pursuant to the provisions of this Warrant, are hereinafter referred to as
the “Warrant Shares.”

This Warrant is
one of a series of warrants issued pursuant to that certain Technology License
and Asset Purchase Agreement of even date herewith to which the Company and the
original Holder are parties (the “Agreement”).

This Warrant is
further subject to the following provisions, terms and conditions:

1.             Term; Termination of Warrant.

(a)           Subject to the
vesting requirements set forth in Section 2, this Warrant may be exercised
by the Holder, in whole or in part, in the manner described in Section 3
hereof at any time before 5:00 p.m. in Minneapolis, Minnesota on June 6,
2012 (the “Expiration Date”). In the event that the Expiration Date of
this Warrant falls on a day which is not a Business Day, the Expiration Date
shall be adjusted to the Business Day immediately following such Expiration
Date. As used herein, the term “Business Day” means each day other than
a Saturday, Sunday or other day on which banks in the location of the principal
office of the Company are legally authorized to close. At 5:00 p.m., Minnesota time on the
Expiration Date, the portion of this Warrant not exercised prior thereto shall
be and become void and of no value, provided, that if the closing sales price
of Ciprico Common Stock on the Expiration Date is greater than 150% of the
Exercise Price on the Expiration Date, then this Warrant shall be deemed to
have been 

 

exercised in full (to the extent not previously
exercised) on a “cashless exercise” basis at 5:00 p.m. Minnesota time on
the Expiration Date.

2.             Warrant Shares and Exercise
Price.

(a)           Exercise Price.
The per share warrant exercise price (the “Exercise Price”) shall equal $6.00, subject to adjustment as provided
herein.

(b)           Number
of Warrant Shares. This Warrant shall become exercisable based on the
vesting provisions set forth in paragraph 2(c), for 300,000 shares of Ciprico Common Stock, subject to adjustment
as provided herein. Holder may continue to exercise this Warrant under the
terms and conditions set forth herein until the termination or expiration of
the Warrant as provided herein. If the
Holder does not purchase upon an exercise of this Warrant the full number of
shares which Holder is then entitled to purchase, the Holder may purchase upon
any subsequent exercise prior to this Warrant’s termination such previously
unpurchased shares in addition to those the Holder is otherwise entitled to
purchase.

(c)           Vesting. This Warrant shall vest and
become exercisable as to 100% of the total Warrant Shares on June 6, 2007
if Company Revenues from the Licensed Software (whether pursuant to licenses
sold by Holder or Company, and whether for Holder or non-Holder based
platforms) for the period from the date of the Closing to June 6, 2007
exceed two million dollars ($2,000,000) and Company Revenues related to RAID
Controller Cards for the period from the date of the Closing to June 6,
2007 exceed five million dollars ($5,000,000). Otherwise, if this Warrant has
not vested previously, then this Warrant shall vest and become exercisable as
to 100% of the total Warrant Shares on June 6, 2009 if the aggregate
Company Revenues from the Licensed Software (whether pursuant to licenses sold
by Holder or Company, and whether for Holder or non-Holder based platforms) for
the period from the date of the Closing to June 6, 2009 exceed ten million
dollars ($10,000,000) and the aggregate Company Revenues related to RAID
Controller Cards for the period from the date of the Closing to June 6,
2009 exceed forty million dollars ($40,000,000). For purposes of this Warrant,
the terms “Revenue,” “Licensed Software,” “RAID Controller Cards,” and “Closing”
shall have the meaning set forth in the corresponding definitions of the
Agreement.

3.             Manner of Exercise. Subject to the vesting
provisions set forth in paragraph 2 (c) above, this Warrant may be
exercised by the Holder, in whole or in part (but not as to any fraction of a
share of Ciprico Common Stock), by surrendering this Warrant, with the Exercise
Form attached hereto as Exhibit A
filled in and duly executed by such Holder or by such Holder’s duly authorized
attorney, to the Company at its principal office accompanied by payment of the
aggregate exercise price therefore (equal to the Exercise Price multiplied by
the number of shares as to which the Warrant is being exercised).

At the option of the Holder, the Exercise Price may be
paid in one or more of the following manners:

 

(i)                            a
certified check or wire transfer of immediately available funds,

(ii)                         surrender
of stock certificates then held representing that number of shares having an
aggregate current fair market value (as defined in paragraph 5(b) below)
on the date of exercise equal to the aggregate Exercise Price for all shares to
be purchased pursuant to this Warrant, or

(iii)                      by a “Cashless
Exercise,” in which event the Company shall issue to the Holder the number of
Warrant Shares determined as follows:

X = Y [(A-B)/A]

where:

X =
the number of Warrant Shares to be issued to the Holder.

Y =
the number of Warrant Shares with respect to which this Warrant is being
exercised.

A =
the fair market value (as defined in paragraph 5(b) below) of Ciprico
Common Stock on the date of exercise.

B =
the Exercise Price.

(iv)                     any
combination of the foregoing methods.

For purposes of Rule 144 promulgated under the
Securities Act, it is intended, understood and acknowledged that the Warrant
Shares issued in a cashless exercise transaction shall be deemed to have been
acquired by the Holder, and the holding period for such Warrant Shares shall be
deemed to have commenced, on the date this Warrant was originally issued.

4.             Effective Date of Exercise. Each exercise of this
Warrant shall be deemed effective as of the close of business on the day on
which this Warrant is surrendered to the Company as provided in Section 3
above. At such time, the person or persons in whose name or names any
certificates for Warrant Shares shall be issuable upon such exercise shall be
deemed to have become the holder or holders of record of the Warrant Shares
represented by such certificates. As promptly as practicable, but in no event
later than 15 Business Days after the exercise of this Warrant in full or in
part, the Company will, at its expense, cause to be issued in the name of and
delivered to the Holder or such other person as the Holder may (upon payment by
such Holder of any applicable transfer taxes) direct:  (i) a certificate or certificates for
the number of full Warrant Shares to which such Holder is entitled upon such
exercise (or upon the Holder’s request, the Company will deliver the Warrant
Shares hereunder electronically through the Depository Trust Corporation or
another established clearing corporation performing similar functions), and (ii) unless
this Warrant has expired, a new Warrant or Warrants (dated the date hereof and
in form identical hereto) representing the right to purchase the remaining
number of shares of Ciprico Common Stock, if any, with respect to which this
Warrant has not then been exercised.

Notwithstanding the foregoing, however, the Company shall not be
required to deliver any certificate for Warrant Shares upon exercise of this
Warrant except in accordance with exemptions from the applicable securities
registration requirements or registrations under applicable securities laws. Nothing
herein, however, shall obligate the Company to effect registrations under
federal or 

 

state securities laws. If registrations are not in
effect and if exemptions are not available when the Holder seeks to exercise
the Warrant, the Warrant exercise period will be extended, if need be, to
prevent the Warrant from expiring, until such time as either registrations
become effective or exemptions are available, and the Warrant shall then remain
exercisable for a period of at least 30 calendar days from the date the Company
delivers to the Holder written notice of the availability of such registrations
or exemptions. The Holder agrees to execute such documents and make such
representations, warranties, and agreements as may be required solely to comply
with the exemptions relied upon by the Company, or the registrations made, for
the issuance of the Warrant Shares.

5.             Protection Against Dilution.

(a)           Adjustment for
Stock Splits, Dividends and Combinations. If the Company, at any time after
the date of this Warrant, subdivides, declares a dividend payable in, or
combines the outstanding shares of Ciprico Common Stock then (i) the
number of shares of Ciprico Common Stock for which this Warrant may be
exercised as of immediately prior to the subdivision, combination or record
date for such dividend payable in Ciprico Common Stock shall forthwith be
proportionately decreased, in the case of combination, or increased, in the
case of subdivision or dividend payable in Ciprico Common Stock (calculated to
the next highest whole share), and (ii) the Exercise Price in effect
immediately prior to the subdivision, combination or record date for such
dividend payable in Ciprico Common Stock shall forthwith be proportionately
increased, in the case of combination, or decreased, in the case of subdivision
or dividend payable in Ciprico Common Stock, computed to the nearest whole
cent.

(b)           Adjustment for
Other Dividends and Distributions. If the Company, at any time after the
date of this Warrant, distributes to holders of Ciprico Common Stock any assets
or debt securities or any rights or warrants to purchase debt securities,
assets or other securities (including Ciprico Common Stock, other than pursuant
to a stock split or stock dividend under Section 5(a) above), the
Exercise Price shall be adjusted in accordance with the formula:

E1 = E x [(O x M) - F]

O x M

where:

E1  =       the
adjusted Exercise Price, computed to the nearest whole cent.

E   =        the
Exercise Price prior to adjustment pursuant to this subsection.

M  =       the
fair market value per share of Ciprico Common Stock before the record date
mentioned below.

O  =        the
number of shares of Ciprico Common Stock outstanding on the record date
mentioned below.

F  =         the
fair market value on the record date of the aggregate of all assets,
securities, rights or warrants
                                          distributed,
as determined in good faith by the Company’s Board of Directors.

 

The adjustment
shall be made successively whenever any such distribution is made and shall
become effective immediately after the record date for the determination of
stockholders entitled to receive the distribution. Upon each adjustment of the
Exercise Price, the Holder shall be entitled to purchase, at the Exercise Price
resulting from such adjustment, the number of shares (calculated to the next
highest whole share) that is equal to the quotient of (i) the Exercise
Price immediately prior to such adjustment multiplied by the number of shares
purchasable pursuant hereto immediately prior to such adjustment; divided by (ii) the
Exercise Price resulting from such adjustment.

(c)           For purposes of this
paragraph 5(b) and paragraph 3 above, the “fair market value” of a
share of Ciprico Common Stock shall be calculated as follows:

(i)            if
the Ciprico Common Stock is listed on the Nasdaq National Market, Nasdaq
SmallCap Market, or an established stock exchange, then the average of the
prices of such stock at the close of the regular trading session of such market
or exchange for the ten (10) Business Days immediately preceding the
applicable valuation date, or

(ii)           if
the Common Stock is not so listed on the
Nasdaq National Market, Nasdaq SmallCap Market, or an established stock
exchange, then the average of the
closing “bid” and “asked” prices quoted by the OTC Bulletin Board, the National
Quotation Bureau, or any comparable reporting service for the ten (10) Business
Days immediately preceding the applicable valuation date, or

(iii)         if the Common Stock
is not publicly traded as of such date, the per share fair market value as
reasonably determined in good faith by the Company’s Board of Directors.

(d)           If, at any time
while this Warrant is outstanding, (i) the Company effects any merger or
consolidation of the Company with or into another Person (as defined below), (ii) the
Company effects any sale of all or substantially all of its assets or licenses
all or substantially all of its intellectual property in one or a series of
related transactions, or (iii) the Company effects any reclassification of
the Ciprico Common Stock or any compulsory share exchange pursuant to which the
Ciprico Common Stock is effectively converted into or exchanged for other
securities, cash or property (in any such case, a “Fundamental Transaction”),
then the Holder shall have the right thereafter to receive, upon exercise of
this Warrant, the same amount and kind of securities, cash or property as it
would have been entitled to receive upon the occurrence of such Fundamental
Transaction if it had been, immediately prior to such Fundamental Transaction,
the holder of the number of Warrant Shares then issuable upon exercise in full
of this Warrant (the “Alternate Consideration”). For purposes of any
such exercise, the determination of the Exercise Price shall be appropriately
adjusted to apply to such Alternate Consideration based on the amount of
Alternate Consideration issuable in respect of one share of Ciprico Common
Stock in such Fundamental Transaction, and the Company shall apportion the
Exercise Price among the Alternate Consideration in a reasonable manner
reflecting the relative value of any different components of the Alternate
Consideration. If holders of Ciprico Common Stock are given any choice as to
the securities, cash or property to be received in a Fundamental Transaction,
then the Holder shall be given the same choice as to the Alternate
Consideration it receives upon any exercise of this Warrant following such
Fundamental Transaction. At the Holder’s request, any successor to the Company
or surviving entity in such Fundamental Transaction shall, issue to the Holder
a new warrant substantially in the form of this Warrant and consistent with the
foregoing provisions and evidencing the Holder’s right to purchase the
Alternate Consideration for the 

 

aggregate Exercise Price upon exercise thereof. The
terms of any agreement pursuant to which a Fundamental Transaction is effected
shall include terms requiring any such successor or surviving entity to comply
with the provisions of this paragraph (c) and insuring that the Warrant
(or any such replacement security) will be similarly adjusted upon any
subsequent transaction analogous to a Fundamental Transaction. “Person” means any natural person, corporation, general
partnership, limited partnership, limited liability company or partnership,
proprietorship, or other business organization.

(e)           If, prior to June 6,
2009, a Fundamental Transaction occurs and the surviving entity following the
Fundamental Transaction (the “Surviving Company”) fails to generate Minimum
Post-Acquisition Revenues (as defined below) in the period ending on the one
year anniversary of the Fundamental Transaction, then any Warrant Shares at the
time subject to this Warrant but not otherwise vested shall automatically vest
so that this Warrant shall become exercisable for all of the Warrant Shares as
fully vested shares of Common Stock of the Surviving Company and may be
exercised for any or all of those vested shares. “Minimum Post-Acquisition
Revenues” shall equal the sum of (i) 80% of Company’s Revenue relating
to RAID Controller Cards in the four most recent fiscal quarters prior to the
Fundamental Transaction; and (ii) 80% of Company’s Revenue from the
Licensed Software (whether pursuant to licenses sold by Holder or Company, and
whether for Holder or non-Holder based platforms) in the four most recent
fiscal quarters prior to the Fundamental Transaction.

(f)            Successive
Adjustments and Notice. The above provisions of this Section 5 shall
similarly apply to successive stock splits, combinations, dividends,
reorganizations, reclassifications, consolidations, mergers or sales. The
Company shall deliver written notice of each such event, and of each such
adjustment to the Exercise Price and type of shares or other consideration
acquirable upon exercise of this Warrant resulting from such proposed event, to
the Holder not less than twenty (20) days prior to such event. Such notice
shall set forth, in reasonable detail, the event requiring the adjustment, the
amount of the adjustment and the method by which such adjustment was calculated.
If any event occurs of the type contemplated by the adjustment provisions
herein, but which is not expressly provided for by such provisions, the Company
will deliver notice of such event as provided above and the Company will make
an appropriate adjustment in the Exercise Price and the number and type of
shares acquirable upon exercise of this Warrant so that the rights of the
Holder shall be neither enhanced nor diminished as a result of such event.

6.             No Voting Rights. This Warrant shall not entitle
the Holder to any voting rights or other rights as a stockholder of the Company
unless and until exercised pursuant to the provisions hereof.

7.             Transfer or Exchange without
Registration; Covenants of Holder.

(a)           In the event the
Holder desires to transfer this Warrant or the Warrant Shares acquirable upon
exercise thereof, the Holder shall provide the Company written notice
describing the manner of such transfer and an opinion of counsel which shall be
satisfactory to the Company and counsel to the Company, that the proposed
transfer may be effected without registration under the Securities Act or
applicable state securities registration laws, whereupon the Holder shall be
entitled to transfer this Warrant or the Warrant Shares in accordance with such
notice upon receipt of the consent of the Company to such transfer, which consent
will not be unreasonably withheld. Upon receipt of evidence reasonably
satisfactory to the Company of 

 

the loss, theft, destruction or mutilation of this
Warrant and, in the case of any such loss, theft, or destruction, upon delivery
of an indemnity agreement reasonably satisfactory in form an amount to the
Company, or, in the case of any such mutilation, upon surrender of this
Warrant, the Company, at its expense, will execute and deliver, in lieu
thereof, a new Warrant of like tenor. The
Company may condition any issuance or sale, pledge, assignment or other
disposition of the Warrant or the Warrant Shares on the receipt from the party
to whom this Warrant is to be so transferred or to whom Warrant Shares are to
be issued or so transferred of any representations and agreements requested by
the Company in order to permit such issuance or transfer to be made pursuant to
exemptions from registration under federal and applicable state securities laws.
Each certificate representing the Warrant (or any part thereof) and any Warrant
Shares shall be stamped with appropriate legends setting forth these
restrictions on transferability.

(b)           The Holder, by
acceptance hereof, represents and warrants that (i) the Holder is
acquiring this Warrant for Holder’s own account for investment purposes only
and not with a view to its resale or distribution, (ii) the Holder has no
present intention to resell or otherwise dispose of all or any part of this
Warrant or the Warrant Shares acquirable hereunder, other than pursuant to
registration under federal and state securities laws or an exemption from such
registration, the availability of which the Company shall determine in its sole
and reasonable discretion, (iii) the Holder is an “accredited investor” as
that term is defined in Regulation D of the General Rules and Regulations
promulgated under the Securities Act, and (iv) the Holder is experienced
and knowledgeable in financial and business matters, is capable of evaluating
the merits and risks of investing in the Warrant Shares, and does not need or
desire the assistance of a knowledgeable representative to aid in the
evaluation of such risks.

8.             Covenants of the Company. The Company covenants
and agrees that all shares that may be issued upon exercise of this Warrant
will, upon issuance, be duly authorized and issued, fully paid, nonassessable
and free from all taxes, liens and charges with respect to the issuance thereof.
The Company further covenants and agrees that the Company has and will at all
times have authorized, and reserved for the purpose of issuance upon exercise
hereof, a sufficient number of shares of its Ciprico Common Stock to provide
for the exercise of this Warrant. The Company agrees that its issuance of this
Warrant shall constitute full authority to its officers who are charged with
the duty of executing stock certificates to execute and issue the necessary
certificates for shares of Ciprico Common Stock upon the exercise of this
Warrant

9.             Certain Notices. The Holder shall be entitled to
receive from the Company, immediately upon declaration thereof and at least 20
days prior to the record date for determination of stockholders entitled
thereto or to vote thereon (or, if no record date is set, prior to the event),
written notice of any event that could require an adjustment pursuant to Section 5
hereof or of the dissolution, liquidation or winding up of the Company. All
notices under this Warrant shall be in writing and shall be delivered
personally or by telecopy (receipt confirmed) to such party (or, in the case of
an entity, to an executive officer of such party) or shall be sent by a
reputable express delivery service or by certified mail, postage prepaid with
return receipt requested, addressed as follows:

if to the Holder, to:

Broadcom Corporation

Attn: David A. Dull

General Counsel

 

16215 Alton Parkway

Irvine, CA 92618

Fax: (949) 450-0504

if to the Company
to:

Ciprico
Inc.

Attn:  Mr. Monte S. Johnson

Sr. Vice President, Chief
Financial Officer

7400 Medina Road, Suite 800

Plymouth, MN 55447

Ph:  (763) 551-4016

with a copy to:

Fredrikson &
Byron, P.A.

Attn:  Melodie Rose, Esq.

200 South Sixth Street, Suite 4000

Minneapolis, MN 55402-1425

Ph:  (612) 492-7162

Fax:  (612) 492-7077

Any party may
change the above-specified recipient and/or mailing address by notice to
all other parties given in the manner herein prescribed. All notices shall be
deemed given on the day when actually delivered as provided above (if delivered
personally or by telecopy) or on the day shown on the return receipt (if
delivered by mail or delivery service).

10.           Governing Law. This Warrant
shall be governed by and construed in accordance with the laws of the State of
Delaware without reference to the choice of law principles thereof. Without
limiting the rights of the parties to pursue in any appropriate jurisdiction
their respective rights with respect to any judgment obtained in respect
hereof, the parties hereby irrevocably consent to the exclusive jurisdiction and venue of the courts of
the State of Delaware or any United States court of competent jurisdiction
situated therein to adjudicate any legal action commenced in respect of this
Warrant and waive any objections either may have at any time to such
jurisdiction and venue. The parties agree to the personal jurisdiction of such
courts and agree that service of process may be made pursuant to notice sent in
accordance with Section 10.

[signature page follows]

 

IN
WITNESS WHEREOF, the Company has caused this Warrant to be signed by its
authorized officer and dated as of the date stated above.

	
  

  	
  CIPRICO INC.

  
	
   

  	
  By:

  	
   

  	
  /s/ JAMES W. HANSEN

  
	
   

  	
  Its:

  	
   

  	
  Chairman and Chief Executive Officer

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