Document:

exv10w52

 

Exhibit 10.52

*** Text Omitted and Filed Separately

Pursuant to a Confidential Treatment Request

under 17 C.F.R. §§ 200.80(b)(4) and 240.24b-2(b)(1

TECHNOLOGY LICENSE AGREEMENT

     THIS TECHNOLOGY LICENSE AGREEMENT (the “License Agreement”) is made and entered into on the
date on which the last signature of the Parties hereto occurs hereon (the “Effective Date”) by and
between Dot Hill Systems Corp., a Delaware corporation (“Dot Hill”) having its principal place of
business located at 2200 Faraday Avenue, Suite 200, Carlsbad, California 92008 and Network
Appliance, Inc., a Delaware corporation (“NetApp”), having its principal place of business located
at 495 East Java Drive, Sunnyvale, California 94089. Dot Hill and NetApp may individually be
referred to as a “Party” and collectively as the “Parties” in this License Agreement.

BACKGROUND:

     WHEREAS, NetApp and Dot Hill previously entered into a Development and Supply Contract
(defined below);

     WHEREAS, Dot Hill and NetApp are interested in establishing separate terms and conditions for
the permitted use by NetApp and each NetApp DCM (defined below) of certain Dot Hill Technology
(defined below) that is delivered by Dot Hill to NetApp for the intended development, manufacture,
sale, distribution and delivery of NetApp products, as more fully set forth below; and

     WHEREAS, Dot Hill and NetApp desire that this License Agreement will supersede and
replace in their entirety those provisions in the Development and Supply Contract which pertain to,
among other things, license rights granted by Dot Hill for use of Dot Hill Technology and rights,
duties and/or obligations for the establishment and maintenance of an escrow therefore, as more
fully set forth below.

     NOW, THEREFORE, in consideration of the terms and conditions herein and for other
good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Dot
Hill and NetApp hereby agree to the following:

LICENSE AGREEMENT:

1. Definitions. For purposes of the construction and interpretation of this License Agreement, the
following terms shall have the following meanings:

     1.1 “Affiliate” means any entity that controls, is controlled by, or under common control with
a party, where control means the direct or indirect beneficial ownership or control of more than
fifty percent (50%) of the outstanding voting interests of such entity (but only for so long as
such entity meets these requirements).

     1.2 “Confidential Information” of a Party means all business, technical and financial
information, data, know-how, ideas and customer lists and any and all other information and
material, tangible or intangible, that is owned, used obtained or

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maintained by such Party which provides such Party an advantage over competitors who do not know or
use it and derives to such Party economic value (actual or potential) from not being generally
known to the public or to other entities who can obtain economic or other value from its disclosure
and use. For the avoidance of doubt, (i) Dot Hill Technology that is licensed by Dot Hill under
this License Agreement shall be deemed to be Confidential Information belonging to Dot Hill and
(ii) the provisions of this License Agreement (including royalty amounts in this License Agreement)
shall be deemed to Confidential Information of both Parties.

     1.3 “Development and Supply Contract” means collectively that certain Development and OEM
Supply Agreement dated July 26, 2005, together with its First Amendment thereto dated August 3,
2006 and its Second Amendment thereto, which have been executed by the authorized representatives
of Dot Hill and NetApp.

     1.4 “Dot Hill Competitor” means Xyratex, Ltd., LSI Corporation, Infortrend Technology, Inc.
and/or any of their respective Affiliates and/or successors-in-interest.

     1.5 “Dot Hill IPR” means all rights worldwide in and to any Dot Hill Patents, copyrights,
trade secrets and semiconductor topography rights (including semiconductor mask work rights) that
Dot Hill has the right to license without the payment of any royalties or other fees to any third
parties and that are not otherwise available to NetApp without a license from Dot Hill, but in all
cases excluding rights in trademarks, service marks, trade names, service names, and Internet
domain names and other similar designations.

     1.6 “Dot Hill Patents” means patents, patent applications, design patents and registrations,
and utility models, along with any reissues, re-examinations, continuations, continuations-in-part,
divisions and renewals thereof, which Dot Hill has the right to license as of the Effective Date
without the required payment of any royalties or other fees to any third party and that are not
otherwise available to NetApp without a license from Dot Hill.

     1.7 “Dot Hill Technology” means those items of Technology that Dot Hill has the right to
license without the payment of royalties or other fees to third parties and that are not otherwise
available to NetApp without a license from Dot Hill and which are used on the Effective Date by Dot
Hill to develop, manufacture, assemble, test and support the Products. These items of Technology
are identified in Exhibit A, List of Dot Hill Technology, to this License Agreement, which
items may be updated upon mutual written agreement of the authorized representatives of Dot Hill
(which for Dot Hill shall be the President or Senior Vice President of Engineering) and NetApp
(which for NetApp shall be a Vice President of Engineering) provided, however, that all of the
following conditions are met: (i) any such item that is to be added or updated must have been in
existence as of the Effective Date (for the avoidance of doubt, these additions and updates of
Technology may include, but not be limited to, undocumented processes or procedures that are being
used to perform the manufacture of Products

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on the Effective Date); (ii) any such item to be added or updated is necessary to manufacture the
Products listed on Exhibit B to the Development and Supply Contract, as such Exhibit
B exists on the Effective Date; (iii)  Dot Hill is not required to pay royalties to any third
party for any item to be added or updated; and (iv) in the Parties’ reasonable opinion, each such
item had either been erroneously or incorrectly omitted from, insufficiently documented, or
erroneously or incorrectly included on Exhibit A, List of Technology, to this License
Agreement. If such authorized representatives of Dot Hill and NetApp agree to update Exhibit
A, List of Dot Hill Technology, for any such item, then Dot Hill will prepare an update thereto
that addresses such item of Technology and upon NetApp’s written acceptance of such update proposed
by Dot Hill, it will become a part of Exhibit A, List of Dot Hill Technology. Any consent
to be provided to a modification or update made to Exhibit A by Dot Hill shall not be
unreasonably withheld. Dot Hill Technology will also include items of Technology that Dot Hill may
supply after the Effective Date to NetApp under the Development and Supply Contract to the extent
necessary to resolve a bug or defect found in Products; however, Dot Hill Technology does not and
shall not include any derivatives, enhancements and/or major modifications to the Products
developed by or for Dot Hill after the Effective Date or any items created after the Effective Date
for which Dot Hill may derive independent economic value, separate and/or apart from the Products.

     1.8 “Effective Date” shall have the meaning ascribed to such term in the introductory
paragraph of this License Agreement.

     1.9 “[...***...] Period” means the [...***...] period beginning on [...***...] and ending on [...***...].

     1.10 “IOM” means an electronics input-output module which incorporates or makes use of any Dot
Hill Technology.

     1.11 “Initial Purchase Period” means the period beginning on [...***...] and ending on [...***...].

     1.12 “License Agreement” means the base terms and conditions of this agreement, together with
any exhibits which are attached hereto.

     1.13 “NetApp DCM” means a third party which is authorized in writing by NetApp to manufacture
products for NetApp.

     1.14 “Other Royalty-Bearing Component” means any [...***...]. The term “Other Royalty-Bearing
Component” also includes any [...***...].

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     1.15 “PCM” means an electronics processor controller module which incorporates or makes use of
any Dot Hill Technology.

     1.16 “Permitted Purposes” means the following: (i) the development of improvements to the
Products (the “Improvements”); (ii) the manufacture of Products and Improvements thereto solely for
integration into or as additions to NetApp systems, appliances and other products; (iii) the sale,
distribution, servicing and support of systems, appliances and other products containing the
Products or Improvements subject, however, to the prior written agreement of the Parties to a
royalty, if any, that applies thereto in accordance with Section 6.1 of this Agreement; and/or (iv)
[...***...].

     1.17 “Product” means any Shasta, [...***...] product that (i) incorporates and/or makes use of
any Dot Hill Technology and (ii) is listed on Exhibit B (Product Price and Bill of
Materials Breakdown) of the Development and Supply Contract, as such exhibit may be updated from
time to time by the parties.

     1.18 “Royalty Base” shall have the same meaning as is ascribed to such term in Section 4 of
Exhibit J, Rev. 1 of the Development and Supply Contract.

     1.19 “Royalty-Bearing Items” means collectively [...***...] Products and Other Royalty-Bearing
Components.

     1.20 “[...***...]” means any [...***...] containing Dot Hill Technology that is designed by or for
NetApp for [...***...]. Notwithstanding the foregoing, the term “[...***...]” shall not include any
[...***...] Products and/or Other Royalty-Bearing Components.

     1.21 “[...***...] Product” means any [...***...] or any derivative products thereof, which
incorporate or make use of any Dot Hill Technology and is designed [...***...].

     1.22 “[...***...] Period” means the [...***...] period beginning on [...***...] and ending on [...***...].

     1.23 “Technology” means any and all technical information, know how, trade secrets, data,
plans, schematics, drawings, design hardcopy, computer-assisted design files, specifications,
vendor lists, board layouts, firmware, test scripts, quality standards, internal component test
design, tooling, tooling designs, test software and documentation, process flows, and process
setups and process instructions.

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     1.24 “Time Commitment Period” means the period that commences on [...***...] and ends on [...***...].

     1.25 “Trigger Event” shall have the same meaning as is ascribed to such term in the Section 5,
Definitions, of the Development and Supply Contract.

2. Term. The term of this License Agreement shall commence on the Effective Date and, unless
earlier terminated in accordance with its termination provisions, shall end on the date on which
the last to expire of the Dot Hill IPR can be enforced. Upon any termination of this License
Agreement in accordance with its termination provisions, the term of this License Agreement will
end on the effective date of such termination.

3. License Rights and Restrictions

     (a) Ordinary Use. Subject to the terms and conditions of this License Agreement and the
Development and Supply Contract, including the fulfillment by NetApp of its obligations to pay on a
timely basis all amounts due under such agreements and to comply in all respects with the
requirements obligations in Exhibit J, Rev. 1 of the Development and Supply Contract, Dot
Hill hereby grants, on behalf of itself and its Affiliates, to NetApp a worldwide, perpetual,
non-transferable (except as permitted under Section 9 (“Assignment”), non-sublicensable,
nonexclusive right and license [...***...].

     (b) Manufacturing and Other Rights. Subject to the terms and conditions of this License
Agreement and the Development and Supply Contract, including the fulfillment by NetApp of its
obligations to pay on a timely basis all amounts due under such agreements and to comply in all
respects with the requirements obligations in Exhibit J, Rev. 1 of the Development and
Supply Contract, Dot Hill hereby grants, on behalf of itself and its Affiliates, to NetApp:

     (i) a worldwide, revocable in accordance with Section 3(c), non-transferable (except as
permitted under Section 9 (“Assignment”)), royalty-bearing during the Time Commitment Period to the
extent set forth in Section 6.1 (“Royalties”) and royalty-free thereafter, perpetual, nonexclusive
right and license, without the right to sublicense (except as set forth in Section 3(d)), [...***...]
to perform:

     (A) during the Initial Purchase Period, Permitted Purposes for up to [...***...] of the total
number of units of [...***...] Products included in NetApp’s fiscal monthly revenue demand that are
to be purchased and sold by NetApp during each NetApp fiscal month within the Initial Purchase
Period,

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               (B) during the [...***...] Period, all Permitted Purposes for up to [...***...] of the total
number of units of [...***...] Products included in NetApp’s fiscal monthly revenue demand that
are to be purchased and sold by NetApp during each NetApp fiscal month within the [...***...]
Period,

               (C) during the [...***...] Period, Permitted Purposes for up to [...***...] of the total number of
units of [...***...] Products included in NetApp’s fiscal monthly revenue demand that are to be
purchased and sold by NetApp during each NetApp fiscal month within the [...***...] Period, and

               (D) after the expiration of the Time Commitment Period, Permitted Purposes for [...***...]
Products;

          (ii) a worldwide, revocable in accordance with Section 3(c), non-transferable (except as
permitted under Section 9 (“Assignment”)), royalty-bearing during the Time Commitment Period to the
extent set forth in Section 6.1 (“Royalties”) and royalty-free thereafter, perpetual, nonexclusive
right and license, without the right to sublicense (except as set forth in Section 3(d)) [...***...] to
perform Permitted Purposes for Other Royalty-Bearing Components; and

          (iii) a worldwide, revocable in accordance with Section 3(c), non-transferable (except as
permitted under Section 9 (“Assignment”)), royalty-free, perpetual, nonexclusive right and license,
without the right to sublicense (except as set forth in Section 3(d)) [...***...]. For the avoidance of
doubt, no [...***...] shall be due to Dot Hill to perform Permitted Purposes for any [...***...].

     (c) Certain Rights of Revocation. Each Party acknowledges and agrees that the license rights
granted to NetApp in Section 3(b) above may be revoked immediately by Dot Hill, upon written notice
to NetApp, in the event of the occurrence of any of the following events:

          (i) if NetApp [...***...]; or

          (ii) this License Agreement or the Development and Supply Contract is terminated according to
its terms due to a material breach by NetApp.

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Also, upon written notice to NetApp, Dot Hill may revoke immediately the sublicense rights granted
by NetApp to a sublicensee of NetApp in the event that: (1) such sublicensee improperly uses Dot
Hill Technology beyond the scope of the sublicense rights described in Section 3(d) (and further
described in Section 3(b) above) and (2) any such improper use remains uncured for a period of
[...***...] after written notice thereof. Any revocation made by Dot Hill of any NetApp rights in
Section 3(b) as a result of any of the events described in Subsection 3(c)(i) and/or 3(c)(ii) above
shall result in the revocation of all related sublicense rights granted by NetApp.

     (d) Sublicense Rights

          (i) Scope of Rights. Subject to the provisions in this Section 3(d) and NetApp’s compliance
with the other terms and conditions of this License Agreement and the Development and Supply
Contract, the rights granted in Section 3(b) may be sublicensed by NetApp solely to NetApp DCMs to
make, within the scope of the applicable rights granted in Section 3(b), [...***...] Products,
Other Royalty-Bearing Components and/or [...***...] for sale to (1) NetApp and (2) NetApp’s Affiliates.

          (ii) Limit on Manufacture of [...***...] Products. NetApp acknowledges and agrees that the
maximum total aggregate amount of units of [...***...] Products that may be manufactured and sold
based on the exercise of the rights in Section 3(b)(i) (including all sublicense rights therefor),
during each NetApp fiscal month occurring within the Time Commitment Period is limited solely to
those units covered within the aggregate percentages expressed in [...***...] for that month,
determined regardless of whether such [...***...] Products are made by NetApp and/or one or more
NetApp DCMs. For the avoidance of doubt, it is hereby acknowledged that with respect to NetApp’s
permitted exercise of the license rights set forth in Section 3(b)(i) (including all sublicense
rights therefor), it will not matter what geographies or regions such [...***...] Products may be
shipped or delivered into by NetApp or how many NetApp DCMs may be used by NetApp to manufacture
for NetApp such [...***...] Products.

          (iii) Other Responsibilities. Prior to the granting by NetApp of any such sublicense rights
to NetApp DCMs or NetApp’s Affiliates, NetApp shall obtain the written agreement of NetApp DCMs or
NetApp’s Affiliates, as applicable, to hold in confidence all Dot Hill Technology that NetApp may
provide and, in the case of a grant of any sublicense rights to any NetApp DCMs, for such NetApp
DCMs to use such Dot Hill Technology solely in a manner fully and entirely consistent with the
rights granted in Section 3(b) and solely to make Products for sale to NetApp or NetApp’s
Affiliates.

          (iv) Exclusions. Notwithstanding anything to the contrary, no rights, licenses, approvals or
permissions are granted under this License Agreement or given by Dot Hill to NetApp or any NetApp
DCM to permit it to license, sublicense, provide, distribute or disclose during the Time Commitment
Period any Dot Hill Technology to

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any Dot Hill Competitor for the purpose of producing any [...***...]. However, in the event that
NetApp considers purchasing [...***...].

     (e) License Restrictions. NetApp acknowledges and agrees that (i) the Dot Hill Technology is
confidential to Dot Hill and (ii) NetApp shall not disclose to any third party, other than NetApp
DCMs or third parties authorized in writing by Dot Hill, any Dot Hill Technology. NetApp shall
not, nor shall NetApp knowingly allow any third party, to: (1) use any Dot Hill Technology, except
as expressly permitted by the license rights granted under this License Agreement, or (2) reverse
engineer, decompile, disassemble, or attempt to reduce to source code form any object code included
in the Dot Hill Technology, except solely to the extent permitted under applicable law to achieve
interoperability with hardware or software to be used therewith.

     (f) No Other Rights Granted. Except as expressly set forth above in this Section 3, no right
or license shall be deemed to be or have been granted, either directly or by implication, estoppel,
exhaustion, doctrine of law, equity or otherwise, under any patent, trade secret, copyright or
other intellectual property rights or to any Dot Hill Technology which Dot Hill may own or
otherwise possess.

4. Ownership Rights. The terms and conditions within Section 11.5, Intellectual Property Ownership
Rights, of the Development and Supply Contract relating to Dot Hill’s ownership rights in Dot Hill
IPR and Dot Hill Technology shall apply to Dot Hill IPR and Dot Hill Technology licensed under this
License Agreement.

5. Use of Manufacturing Lines.  If a Trigger Event occurs and a Dot Hill DCM becomes a NetApp DCM
to make Products to supply to NetApp, then any manufacture or production of such Products may, at
NetApp’s option, [...***...] provided, however, that:

     (i) such right may be exercised only with the prior written consent of Dot Hill, which consent
will not be unreasonably withheld, and only (a) if NetApp has not already established with a NetApp
DCM its own manufacturing lines to make or produce Products and (b) for a period of [...***...]
following the date of such Trigger Event ([...***...]); and

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     (ii) with respect to such right, NetApp shall be entitled to receive [...***...] that NetApp would
have been [...***...] under the Development and Supply Contract, based on the application of the
[...***...] of Exhibit F, Rev. 2 thereto and determined as if NetApp had elected to purchase
such Products directly from Dot Hill, instead of from another source.

Notwithstanding anything to the contrary, NetApp acknowledges and agrees that, unless a Trigger
Event occurs, NetApp shall have no right to [...***...].

6. Royalties; Statements; Payments; Taxes; Interest; Other Reports

     6.1 Royalties. In partial consideration of the rights, licenses and other privileges which
are granted by Dot Hill to NetApp in this License Agreement, NetApp hereby agrees to pay to Dot
Hill, at the times and in the manner set forth in Section 6.2 below, the amounts set forth below.

     (a) Certain Royalty-Bearing Products. For the license rights granted in this Agreement,
royalties shall be imposed on the products described below in accordance with the classification
scheme set forth below: [...***...]

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[...***...]

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[...***...].

          (b) Royalties for Units of [...***...] Products. For each unit of a [...***...] Product in
the Royalty Base that is sold, distributed or otherwise made available to any third party by
NetApp, a NetApp DCM or any of their respective Affiliates during any NetApp fiscal month occurring
within the [...***...], NetApp shall pay a royalty to Dot Hill in an amount equal to [...***...] for such
unit, according to the same or similar Product containing the same configuration included on
Exhibit B of the Development and Supply Contract. Solely for the purpose of the
interpretation and construction of this Section 6.1(b), the term [...***...]. For this royalty
calculation, [...***...]. NetApp shall inform Dot Hill in writing of when each [...***...] for each
[...***...] Product is anticipated to occur, [...***...] prior to each such anticipated [...***...].

          (c) Royalties for Other Items. Each of the Parties acknowledge and agree that, as of the
Effective Date, royalty rates have not been agreed by the Parties for any products or items not
otherwise listed on Exhibit B of the Development and Supply Agreement (including
derivatives that have similar configurations, along with Other [...***...]). Upon request by a Party,
a royalty rate shall be negotiated in good faith by the Parties for such products or items which
may be based on factors including but not limited to the remaining time in the [...***...], amount of
IP utilized, attainment to business plan, competitive dynamics and other relevant factors. NetApp
shall inform Dot Hill in writing of when each [...***...] for each product is anticipated to occur,
[...***...] prior to each such anticipated [...***...]. Notwithstanding anything to the contrary, unless
and until the Parties negotiate and establish a royalty for each of such products through their
authorized representatives, NetApp shall not have any right to sell, distribute, service or support
any systems, appliances and/or other products which contain any products or improvements that
contain or make use of any Dot Hill Technology.

     (d) Reconciliation for Units of [...***...] Products. For the avoidance of doubt, it is
hereby acknowledged and understood that during the [...***...] Period and the [...***...] Period
royalties will be required to be paid under Section 6.1(a) for units of [...***...]

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[...***...]. The following schedule reconciles the percentages contained in the license rights in
Section 3(b)(i) of this License Agreement with the percentages contained in the Royalty Base for
[...***...] Products for which royalties are due from NetApp:

	 	 	 	 	 	 	 	 	 
	 	 	 	 	Percentage	 	Percentage	 	 
	 	 	 	 	in License	 	of Royalty-	 	Royalty
	Description	 	Period of Time	 	Rights	 	free Units	 	Base
	Initial Purchase Period
	 	[...***...]	 	[...***...]	 	[...***...]	 	[...***...]
	[...***...] Period
	 	[...***...]	 	[...***...]	 	[...***...]	 	[...***...]
	[...***...] Period
	 	[...***...]	 	[...***...]	 	[...***...]	 	[...***...]

     6.2       Statements.  NetApp shall submit to Dot Hill, [...***...], a complete and accurate
statement of account, in such form and containing such information as may be mutually agreed by the
parties at any time and from time to time.  Notwithstanding anything to the contrary, such
information to be submitted by NetApp shall, at a minimum, include the following: (i) the total
units of each of the Royalty-Bearing Items, by product or part number, sold, distributed or
otherwise made available to any third party by the aggregate of NetApp, a NetApp DCM or any of
their respective Affiliates (for the avoidance of doubt NetApp may provide the aggregate data by
each product or part number for all such units regardless of whether they are sold, distributed or
otherwise made available by NetApp, a NetApp DCM or any of their respective Affiliates); (ii) the
identity of the NetApp DCM’s which manufacture each of the Royalty-Bearing Items; and (iii) a
calculation of the total amount due and payable to Dot Hill under this License Agreement by each
product or part number for the relevant NetApp fiscal month reporting period.  Each statement shall
be in writing and certified by NetApp and sent by NetApp to a Dot Hill-designated address. Dot
Hill shall submit an invoice to NetApp for the amount payable based on such statement of account
[...***...] its receipt of such statement from NetApp.  The amounts due to Dot Hill under this License
Agreement shall be due and payable to Dot Hill [...***...] (the “Payment Term”) occurring during the
period commencing on the Effective Date and ending on March 31, 2011. Notwithstanding the
foregoing, if NetApp has submitted to Dot Hill [...***...] a complete and accurate statement of account
containing proper information for such NetApp [...***...], but Dot Hill has not issued an invoice to
NetApp based on such statement within [...***...] after Dot Hill’s receipt of such statement from
NetApp, then there will be a day-for-day delay in the Payment Term for the amount due from NetApp
that is based on such statement which will be

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equal to the number of days that such invoice had been issued late by Dot Hill, i.e., the number of
days beyond [...***...] for which such invoice was issued late by Dot Hill.

     6.3 Payments. All payments of amounts due and payable to Dot Hill under this License
Agreement shall be made: (i) via electronic transfer in accordance with instructions which will be
supplied by Dot Hill to NetApp, (ii) in United States dollars, and (iii) except as permitted in
Section 6.4 below, without any set-off or deduction of any kind or nature, notwithstanding any
claim which NetApp may assert against Dot Hill. The receipt or acceptance by Dot Hill of any
statements or of any payments in respect of any amounts due and payable to Dot Hill under this
License Agreement shall not preclude Dot Hill from questioning the correctness of such amounts at
any future time. NetApp will notify Dot Hill promptly in writing in the event that NetApp
discovers any inconsistencies, mistakes or errors which have been made in the statements submitted
or payments made, and provide to Dot Hill at such time all relevant information with regard thereto
in order to permit correction of such inconsistencies, mistakes or errors. NetApp will make
appropriate payment to Dot Hill therefor within [...***...] of NetApp’s provision of written notice
thereof to Dot Hill.

     6.4 Taxes. All payments made by NetApp under this License Agreement shall be made free and
clear of and without deduction or withholding for or on account of any taxes unless such deduction
or withholding is required by applicable law, in which case NetApp shall (a) withhold the legally
required amount from payment, (b) remit such amount to the applicable taxing authority, and (c)
within [...***...] of payment, deliver to Dot Hill original documentation or a certified copy
evidencing such payment of tax. In the event that NetApp does not provide evidence of payment of
withholding taxes in accordance with the preceding sentence, NetApp shall be liable to and shall
reimburse Dot Hill for the tax withheld from payment to Dot Hill. In determining the amount of tax
to withhold, NetApp shall give due regard to all applicable international laws, including income
tax treaties and/or protocols.

     6.5 Interest. All undisputed amounts payable by NetApp to Dot Hill which are paid more than
[...***...] after their applicable due date shall bear interest in an amount equal to [...***...], computed
from the original date due until such overdue amounts are paid.

     6.6 Planning Reports. NetApp shall provide to Dot Hill, prior to the end of each NetApp
fiscal quarter occurring within the period beginning on the Effective Date and ending on March 31,
2011, with a non-binding report setting forth a description and quantities of each of the
Royalty-Bearing Items that NetApp and NetApp DCMs expect to sell, distribute or otherwise make
available to third parties during each NetApp fiscal month in the upcoming NetApp fiscal quarter,
together with a calculation of royalties anticipated to become due to Dot Hill under this License
Agreement for each of such Royalty-Bearing Items. Dot Hill acknowledges that the planning reports
provided to it by NetApp under this License Agreement may contain Confidential Information of
NetApp

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and, therefore, such reports will be subject to the confidentiality provisions in Section 8 of
this License Agreement.

     6.7 Other Information. At least [...***...] prior to first customer shipment of any new NetApp
product that incorporates or any makes use of Dot Hill Technology in each such product, NetApp
shall disclose in writing to Dot Hill: (i) details of the major elements of Dot Hill Technology
incorporated or used in each such new NetApp product and (ii) the names, addresses and contact
information of all third parties that have used Dot Hill Technology to make or develop each such
new NetApp product.

7. Books and Records. NetApp and its Affiliates shall keep complete and accurate books of account
and records relating to the subject matter of this License Agreement, including all transactions
relating to the rights and licenses granted and amounts due and payable to Dot Hill under this
License Agreement. Without limiting the generality of the foregoing, NetApp and its Affiliates
shall make available to Dot Hill, without restriction, reports and information necessary for Dot
Hill to verify the transactions relating to the rights and licenses granted and all amounts due and
payable to Dot Hill under this License Agreement hereunder, including all information necessary to
verify the statements required to be delivered by NetApp pursuant to Section 6 of this License
Agreement. During the period beginning on the Effective Date and ending on March 31, 2011, and for
a period of [...***...] thereafter, Dot Hill and/or its duly authorized agents shall have the right,
upon [...***...] prior written notice to NetApp and at Dot Hill’s expense, to examine and/or audit said
books of account and records at NetApp’s and NetApp’s Affiliates’ place of business to determine
the accuracy and completeness of the statements and payments provided by NetApp under this License
Agreement. If, however, any such examination or audit discloses that NetApp owes any amounts to
Dot Hill in excess of [...***...] of the amounts previously paid to Dot Hill, then NetApp shall
immediately pay such deficiency, plus interest thereon in the amount provided for in Section 6.5,
together with all reasonable costs for such examination and collection thereof which have been
incurred by Dot Hill.

8. Confidentiality

     8.1 General Obligations. In connection with a Party’s activities under this License
Agreement, each Party may be supplying or disclosing to the other Party, in confidence, certain
Confidential Information. All Confidential Information which is owned by a disclosing Party shall
be and remain the sole and exclusive property of the disclosing Party. Each Party agrees to (i)
maintain all of the Confidential Information of the disclosing Party in the strictest of confidence
and (ii) except as expressly permitted in Section 8.2 of this License Agreement, not disclose or
permit or aid in the disclosure of any portion of the disclosing Party’s Confidential Information.
Each Party shall not, except to perform its obligations or exercise its rights in a manner
permitted under this License Agreement, use the Confidential Information for any purpose
whatsoever.

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     8.2 Disclosure of Dot Hill Technology

          (i) Written Confidentiality Agreements. Prior to NetApp’s provision of any Dot Hill
Technology to any NetApp DCM or other third party, NetApp shall enter into a written
confidentiality agreement that requires such NetApp DCM or other third party to treat such Dot Hill
Technology as Confidential Information of Dot Hill and in a manner consistent with the sublicense
rights granted in Section 3(d) (and within the proper scope of the permitted rights described in
Section 3(b)), the confidentiality obligations of NetApp is Section 8.1 above.

     (ii) Limited Scope of Disclosure. NetApp shall not disclose any Dot Hill Technology to any
third party without obtaining the prior written approval of an authorized representative of Dot
Hill, unless: (i) such disclosure is made for the purpose of: (a) enabling a third party to work
with a NetApp DCM to have such NetApp DCM make Products for sale to NetApp, or (b) permitting a
third party to develop for NetApp enhancements to or derivative Products; and (ii) such third party
has a strict need to know such Dot Hill Technology in order to perform its obligations associated
with or related to such purpose. This obligation shall not prevent or restrict NetApp’s right to
use or disclose the Dot Hill Technology in a manner that is consistent with the (1) license rights
granted by Dot Hill and related license restrictions in Section 3 of this License Agreement and (2)
confidentiality and other obligations in Section 8 of this License Agreement. Notwithstanding
anything to the contrary, NetApp shall have no right to provide, distribute or disclose during the
Time Commitment Period any Dot Hill Technology to any Dot Hill Competitor for the purpose of
producing [...***...], without first obtaining a separate written approval from an authorized
representative of Dot Hill to do so, and no approval or permission shall be deemed to have been
given by Dot Hill under or by virtue of this Section 8.2(ii) to permit NetApp to do so.

          (iii) Communication of Information. Upon request by Dot Hill, NetApp will: (i) provide Dot
Hill with redacted copies of all existing confidentiality agreements then in effect with all such
third parties that cover the use of such Confidential Information, including any redacted
confidentiality agreements with any NetApp DCMs; and (ii) reasonably cooperate with Dot Hill in
actions undertaken by Dot Hill to enforce the provisions of any existing confidentiality agreements
which cover Confidential Information of Dot Hill. NetApp may redact any confidentiality agreement
to be provided to Dot Hill under this Section 8.2(iii) for the purpose of protecting the
confidential information of third-party suppliers, current and future unannounced NetApp products,
confidential NetApp product roadmaps, and confidential supply chain information. For the avoidance
of doubt, this ability of NetApp to redact information shall not provide to NetApp any right to
redact information which details the specific Confidential Information of Dot Hill disclosed to
such recipients.

The parties acknowledge that, prior to the Effective Date, Dot Hill has made a written request to
NetApp for it to: (a) disclose the names, addresses and contact information

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of all third parties which have received any RFQ Information and/or DH Engineering Information, as
such terms are defined in the Development and Supply Contract; (b) provide Dot Hill with copies of
all existing confidentiality agreements then in effect with all such third parties that cover the
use of such RFQ information and/or DH Engineering Information; and (c) inform Dot Hill of any
suspected or know misuse of any such RFQ Information and/or DH Engineering Information by any such
third parties. NetApp hereby agrees to provide each of these items to Dot Hill on or about October
5, 2007.

Also, after the Effective Date NetApp will notify Dot Hill immediately in writing of: (1) any
suspected or known misuse of any Confidential Information of Dot Hill by NetApp or any third
parties and/or (2) any breach or violation by NetApp or any of its Affiliates of Section 8 of this
Agreement. Such notice will occur immediately after any information of such suspected or known
misuse is brought to NetApp’s attention and will include all known details thereof.

     8.3 Exceptions to Confidentiality Obligations. The confidentiality obligations in Sections
8.1 and 8.2 shall not apply in respect of any information to the extent to which it:

          (i) is in the public domain at the time of the disclosing Party’s communication to the
receiving Party;

          (ii) enters the public domain through no fault of the receiving Party after the time of the
disclosing Party’s communication thereof to the receiving Party;

          (iii) was rightfully communicated by a third party to the receiving Party free of any
obligation of confidence;

          (iv) is independently developed by a Party without access to and use of the other Party’s
Confidential Information;

          (v) is required to be disclosed by law, regulation, governmental authority, national stock
exchange or national listing system rule or regulation;

          (vi) is required to be disclosed by a court order provided, however, that if the receiving
Party seeks disclosure of such information, it shall provide the disclosing Party with written
notice thereof and the opportunity to seek a protective order or seek confidential treatment of any
such information be to disclosed, if applicable, and, provided further, that such Party only
discloses what is required to be disclosed;

          (vii) pertains to the terms and provisions of this License Agreement and is disclosed in
confidence to a Party’s accountants, bankers, and financial and/or legal advisors who are under a
duty to maintain such information in confidence; and/or

          (viii) is necessary to enforce the terms of this License Agreement.

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In connection with any proposed filing of this License Agreement with the Securities and Exchange
Commission or other regulatory body, the Parties will work in good faith to request promptly, and
in a manner consistent with a Party’s then-existing filing obligations therewith, confidential
treatment for sections of this License Agreement that qualify for such confidential treatment.

9. No Assignment. Neither Party shall assign any of its rights nor delegate any of its obligations
under this License Agreement to any other party, whether by operation of law or otherwise, without
first obtaining the prior written consent of the other Party. Notwithstanding the foregoing, a
Party hereto may assign this License Agreement, upon written notice to the other party, to a
successor-in-interest to all or a majority of its outstanding voting securities or to a purchaser
of all or substantially all of its assets provided, however, that: (1) any such assignment of this
License Agreement to such successor-in-interest or purchaser, as the case may be, is made on a
simultaneous basis with an assignment to such same successor-in-interest or purchaser, as the case
may be, of the Development and Supply Contract, (2) such successor-in-interest or purchaser, as the
case may be, agrees in writing to abide in all respects with the assigning Party’s existing and
future duties and obligations under both this License Agreement and the Development and Supply
Contract, and (3) in the case of a situation involving a potential or actual successor-in-interest
to all or a majority of its outstanding voting securities of NetApp or a potential or actual
purchaser of all or substantially all of its assets of NetApp, any such successor-in-interest or
purchaser, as the case may be, is not a Dot Hill Competitor. Any attempted assignment or
delegation in violation of the foregoing shall be null, void and ineffective from inception. The
rights and obligations of this License Agreement shall inure to and be binding upon each Party’s
respective permitted successors-in-interest and assigns.

10. TERMINATION RIGHTS. A Party will have the right to terminate this License Agreement in the
event the other Party materially breaches any material provision of this License Agreement or the
Development and Supply Contract, and fails to correct such breach within [...***...] after receiving
written notice thereof. Any such notice shall specify with particularity such breach and the fact
that the License Agreement may be terminated if such breach remains uncured. If this notice has
been sent and the breach in such written notice remains uncured, then this License Agreement can be
terminated by the Party that provided such written notice through its submission of a separate
written letter of termination to the other Party, which termination will become effective on the
date specified in such separate written letter of termination. Upon any termination of this
License Agreement in accordance with and subject to the provisions of this Section 10, all of the
rights and licenses granted by Dot Hill in this License Agreement shall immediately terminate.
Termination of this License Agreement for any reason shall not affect the rights and obligations of
the parties accrued through, up to and/or prior to the effective date of such termination.

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11. Governing Laws; Escalation; Arbitration

     11.1 Governing Laws. This License Agreement shall be governed by the laws of the State of
California, determined without regard to any conflict of laws provisions that would result in the
application of the laws of a different state.

     11.2 Escalation. The Parties agree that any material dispute between the Parties relating to
this License Agreement will be escalated to a panel of two (2) senior executives, one each from Dot
Hill and NetApp. Either Party may initiate this proceeding by notifying the other Party pursuant
to the notice provisions of this License Agreement. Within [...***...] from the date of receipt of the
notice, the Parties’ executives shall confer (via telephone or in person) in an effort to resolve
such dispute. In the event the executives are unable to resolve such dispute within [...***...] after
the submission to them, then, upon the written request of a Party, such dispute may be settled by
means of arbitration as provided below. Each Party’s executives shall be identified by written
notice to the other Party, and may be changed at any time by written notice pursuant to the notice
provisions of this License Agreement.

     11.3 Arbitration. Any dispute between the Parties named in this License Agreement that is not
resolved by escalation shall be settled by arbitration under the then-current rules of the Judicial
Arbitration and Mediation Services (“JAMS”), including the right of either Party to conduct
discovery in accordance with the laws of the State of California. The site for any arbitration
proceeding shall be Santa Clara County, California. The Parties shall agree and select a single
arbitrator. The arbitrator so chosen shall be knowledgeable in the field of computer hardware and
software, and in the field of commercial law. The decisions of the arbitrator shall be deemed
final, without appeal provided, however, that each Party may seek judicial resolution of any issue
involving such Party’s Intellectual Property Rights or Technology and such judicial resolution
shall take precedence over any decision of the arbitrators. All questions of law shall be decided
in accordance with the laws of the State of California. In the event that one Party breaches any of
its obligations under this License Agreement, in addition to all other remedies provided in this
License Agreement, the prevailing Party shall be entitled to all costs and expenses of enforcement
reasonably incurred as a result of said breach, including arbitration costs, court costs and
reasonable attorney’s fees.

12. Intellectual Property Indemnification

     12.1 Indemnification Obligations. Subject to the terms, conditions and limitations set forth
in this License Agreement, Dot Hill shall indemnify, defend (or at its option settle) and hold
harmless NetApp and NetApp DCMs (each a “NetApp Indemnified Party”) from and against any third
party claim, suit or proceeding brought against a NetApp Indemnified Party to the extent such
claim, suit or proceeding is based upon an allegation of misappropriation of any trade secret, or
infringement of any patent or copyright, with respect to the permitted use of Dot Hill Technology
in accordance with the license rights granted in this License Agreement, by such NetApp Indemnified
Party.

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     12.2 Conditions to Indemnification Obligations. Dot Hill’s indemnification obligations in
Section 12.1 are conditioned upon all of the following: (i) immediately after its receipt thereof,
the NetApp Indemnified Party shall inform Dot Hill in writing of any claim, suit or proceeding that
is covered by Dot Hill’s indemnification obligations in Section 12.1 above; (ii) each NetApp
Indemnified Party must give Dot Hill sole and complete authority to defend and/or settle each such
claim, suit or proceeding; and (iii) each NetApp Indemnified Party shall give Dot Hill full and
proper information and assistance, at Dot Hill’s expense, to permit Dot Hill to evaluate, defend
and/or settle each such claim, suit or proceeding. Dot Hill shall not be liable for any costs or
expenses which are incurred without its written authorization. Each NetApp Indemnified Party shall
not enter into any settlement of any claim, suit or proceeding covered by Dot Hill’s
indemnification obligations in Section 12.1 above and which entails any obligation on the part of
Dot Hill, without obtaining the prior written consent of Dot Hill.

     12.3 Certain Remedies. Following notice of any actual or threatened claim, suit or proceeding
that is covered by Dot Hill’s indemnification obligations in Section 12.1 above, Dot Hill may, at
its sole option and discretion: (i) procure for any NetApp Indemnified Party the right to continue
to use Dot Hill Technology in accordance with the license rights that are granted in this License
Agreement, or (ii) provide a workaround to a NetApp Indemnified Party that will resolve such claim,
suit or proceeding provided that such workaround does not adversely affect the form, fit, function,
operation or reliability of the Product that is made with the use of such Dot Hill Technology.

     12.4 Limitation of Liability. Notwithstanding the foregoing, Dot Hill shall not assume any
liabilities or obligations for any claim(s) of misappropriation or infringement covering: (i) any
items of technology not delivered by Dot Hill; (ii) any items of technology not developed by Dot
Hill or Dot Hill’s licensors; (iii) any combination of Dot Hill Technology with any technology,
hardware, software and/or firmware not supplied by Dot Hill, provided that the combination is the
object of such claim; (iv) any features or functions in Dot Hill Technology developed at the
direction of NetApp based on specific written input that is given by NetApp through a formal change
control process or through a written approved change to the specifications for Products; and/or (v)
any modifications made to Dot Hill Technology after its delivery by Dot Hill, provided that such
claim extends only to such modifications, as opposed to any underlying unmodified Dot Hill
Technology that has been provided by Dot Hill. The limitation in Subsection 12.4(iii) above shall,
however, not apply to that portion of the combination that contains Dot Hill Technology.

     12.5 Exclusive Remedy. THE FOREGOING IS THE ENTIRE EXCLUSIVE OBLIGATION OF DOT HILL, AND THE
SOLE AND EXCLUSIVE REMEDY OF EACH INDEMNIFIED PARTY, FOR ANY ACTUAL OR THREATENED MISAPPROPRIATION
OR INFRINGEMENT CLAIMS, SUITS AND/OR PROCEEDINGS MADE AGAINST A NETAPP INDEMNIFIED PARTY WITH
RESPECT TO DOT HILL TECHNOLOGY.

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13. Limited Liability. EXCEPT FOR ANY FAILURE TO COMPLY WITH THE LICENSE OR OWNERSHIP RIGHTS OR
CONFIDENTIALITY PROVISIONS IN THIS LICENSE AGREEMENT, IN NO EVENT SHALL EITHER PARTY BE LIABLE FOR
ANY SPECIAL, CONSEQUENTIAL, INDIRECT, EXEMPLARY OR INCIDENTAL DAMAGES HOWEVER CAUSED, AND WHETHER
FOR BREACH OF WARRANTY, BREACH OF CONTRACT, REPUDIATION OF CONTRACT, TERMINATION, NEGLIGENCE OR
OTHERWISE, EVEN IF A PARTY SHALL HAVE BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. THIS
LIMITATION SHALL, HOWEVER, NOT APPLY TO ANY ROYALTIES THAT ARE OR BECOME DUE AND PAYABLE HEREUNDER.
THE PARTIES ACKNOWLEDGE AND AGREE THAT THE AMOUNTS PAYABLE UNDER THIS LICENSE AGREEMENT HAVE BEEN
ESTABLISHED BASED UPON THESE LIABILITY LIMITATIONS, AND AGREE THAT THESE LIMITATIONS SHALL APPLY
NOTWITHSTANDING THE FAILURE OF ANY ESSENTIAL PURPOSE OF ANY LIMITED REMEDY. EXCEPT FOR ANY FAILURE
TO COMPLY WITH THE CONFIDENTIALITY PROVISIONS IN THIS LICENSE AGREEMENT, DOT HILL’S MAXIMUM
LIABILITY UNDER THIS LICENSE AGREEMENT, HOWEVER ARISING, SHALL IN NO EVENT EXCEED [...***...]. IN NO
EVENT SHALL THIS LICENSE AGREEMENT BE CONSTRUED SO AS TO REDUCE ANY OF THE PROPRIETARY RIGHTS OF
DOT HILL.

14. Disclaimer of Warranties. DOT HILL HEREBY DISCLAIMS ALL WARRANTIES, WHETHER EXPRESS, IMPLIED,
STATUTORY OR OTHERWISE, WITH RESPECT TO ALL ITEMS LICENSED UNDER THIS LICENSE AGREEMENT. ALL SUCH
ITEMS ARE PROVIDED “AS IS” BASIS AND WITHOUT ANY WARRANTIES. ANY USE OF SUCH ITEMS IS AT THE
RECIPIENT’S RISK. DOT HILL ALSO DISCLAIMS THE IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR A
PARTICULAR PURPOSE AND NON-INFRINGEMENT OF THIRD PARTY RIGHTS WITH RESPECT TO ALL OF THE ITEMS
PROVIDED UNDER THIS LICENSE AGREEMENT.

15. Severability and Waiver

     15.1 Severability. If any provision of this License Agreement shall be found to be invalid,
illegal or unenforceable, then, the Parties will negotiate a replacement for such provision which
will be consistent with the original intent of the Parties, but will be valid, legal and
enforceable in all respects. If this is not possible, then notwithstanding the same, this License
Agreement shall remain in full force and effect, and such provision shall be deemed stricken to the
extent if the provisions of this License Agreement can be maintained in a manner consistent with
the Parties’ original intent and purpose of this License Agreement.

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     15.2 Waiver. Any and all waivers of any of the provisions contained within this License
Agreement must be in writing and signed by an authorized representative of the Party to whom such
waiver is sought. The failure of either Party to enforce, at any time or for any period, any
provision of this License Agreement shall not be deemed or construed to be a waiver of the
provision or of the right to require subsequent enforcement of that or any other provision.

16. Compliance with Laws and Regulations

     16.1 Export Controls. Export of technical data, Confidential Information, software and
products is subject to compliance with the United States Export Administration Act of 1979 and the
Export Administration Amendment Act of 1985, and the Export Administration Regulations adopted and
administered by the United States Department of Commerce (collectively, the “Export Controls”). To
the extent required under such Export Controls, NetApp agrees to obtain and to inform third parties
of the obligation to obtain a validated or general license, as the case may be prior to any such
export and to identify to Dot Hill, as appropriate, their names and locations.

          16.1.1 NetApp understands its obligations to report all matters relating to any potential
violation of the United States Foreign Corrupt Practices Act encountered in any performance under
this License Agreement to the other, according to the notice provisions of this License Agreement.

          16.1.2 NetApp understands that deliveries of technical data, Confidential Information,
software and products to Sudan, Syria, Cuba, Iran and North Korea may be prohibited or
substantially restricted and that this prohibition or restriction may change from time to time, as
reflected at http://www.ustreas.gov/ofac.

          16.1.3 NetApp understands that deliveries of technical data, Confidential Information,
software and products to certain organizations may be prohibited or substantially restricted and
that this prohibition or restriction may change from time to time, as reflected at
http://www.gpo.gov/bxa (See part 744).

          16.1.4 NetApp understands that deliveries of technical data, Confidential Information,
software and products to certain organizations or individuals listed in the Table of Denial Orders
(“TDO”) may be prohibited or substantially restricted and that this prohibition or restriction may
change from time to time, as reflected at http://www.bxa.doc.gov/DPL/2_denial.htm).

          16.1.5 NetApp understands that deliveries of technical data, Confidential Information,
software and products may be subject to certain required record keeping requirements, including
those recordkeeping requirements outlined at http://www.bxa.doc.gov/PDF/Admin3.pdf.

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          16.1.6 NetApp understands its obligations to report all matters relating to any potential
violation of the United States Anti-Boycott Law encountered in any performance under this License
Agreement to the other, according to the notice provisions of this License Agreement.

     16.2 Foreign Corrupt Practices Act. The Parties are subject to the laws and regulations of
the United States relating to the Foreign Corrupt Practices Act (“FCPA”). Neither Party shall pay
any money, gift or any other thing of value to any person for the purpose of influencing any
official governmental action or decision affecting this License Agreement or with the intention of
obtaining or maintaining any business related to this License Agreement, while knowing or having
reason to know that any portion of such money, gift or thing will, directly or indirectly, be
given, offered therefore to: (i) an employee, officer or other person acting in an official
capacity for any government or its instrumentalities to influence any such official governmental
action or decision; or (ii) any political party, party official or candidate for political office
to influence any such official governmental action or decision. Each Party shall maintain books,
records, and systems of accounting and control adequate to insure that assets and operations are
accounted for and that the business of each Party under this License Agreement is carried out
according to the directions of their respective executive officers.

     16.3 Assurances and Compliance. Each Party shall provide the other with the assurances and
official documents that may be requested to verify, where applicable, its compliance with the
Export Controls, FCPA, etc. To the extent applicable to the activities to be conducted by a Party
under this License Agreement, actions by a Party which violate the Export Controls, FCPA, etc.
shall be deemed to be material breaches of this License Agreement and may result in civil or
criminal penalties.

     16.4 Export Control Classification. If Dot Hill Technology is required to be classified for
export control classification purposes, then Dot Hill will work with NetApp to establish an
accurate export control classification number for the Dot Hill Technology that is provided by Dot
Hill to NetApp under this License Agreement.

17. Notices. Any notice given under this License Agreement by NetApp or Dot Hill shall be in
writing and sent by registered or certified, return receipt requested, mail to the business address
for Dot Hill or NetApp, respectively, that is set forth in the introductory paragraph to this
License Agreement or such other business address as Dot Hill or NetApp may later designate for
itself by written notice in accordance with the provisions of this Section 17. For NetApp, any
such notice shall be directed to the Vice President of Supply Chain Management and the General
Counsel of NetApp. For Dot Hill, any such notice shall be directed to the President & CEO, and the
Chief Financial Officer, of Dot Hill. Notice shall be deemed given three (3) business days after
being sent as prescribed above.

18. Effect of License Agreement on Development and Supply Contract. The terms and conditions in
this License Agreement shall supersede and replace in their entirety the provisions of Sections
11.1 (“NetApp License Rights and Restrictions”), 11.3 (“No Other Rights Granted”), 11.4 (“Future
Desired License Rights”), 11.6

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(“Use of Manufacturing Lines”), 11.7 (“License for Power Supplies”) and 13 (“Escrow”) of the
Development and Supply Contract. If there is a conflict or inconsistency between the provisions of
this License Agreement and those of the Development and Supply Contract, such conflicting or
inconsistent provisions contained in this License Agreement shall take precedence and prevail over
such conflicting or inconsistent provisions contained in the Development and Supply Contract.

19. Remedies. No right or remedy conferred upon either Party under this License Agreement shall be
exclusive of any other right or remedy that such Party may have at law, equity or otherwise and any
such right or remedy shall, to the extent permitted by law, be in addition to any other right or
remedy which a Party may have.

20. Survival. The provisions contained in Sections 1 (“Definitions”), 3(e) (“License
Restrictions”), 3(f) (“No Other Rights Granted”), 4 (“Ownership Rights”), 6 (“Royalties;
Statements; Payments; Taxes; Interest; Other Reports”), 7 (“Book and Records”), 8
(“Confidentiality”), 9 (“No Assignment”), 11 (“Governing Laws; Escalation; Arbitration”), 12
(“Intellectual Property Indemnification”), 13 (“Limited Liability”), 14 (“Disclaimer of
Warranties”), 15 (“Severability and Waiver”), 16 (“Compliance with Laws and Regulations”), 17
(“Notices”), 18 (“Effect of License Agreement on Development and Supply Contract”), 19
(“Remedies”), 20 (“Survival”), 21 (“Headings and Subheadings”), 22 (“Advice of Legal Counsel;
Construction”), 23 (“Counterparts; Facsimile Transmissions”) and 24 (“Entire Agreement”) of this
License Agreement shall survive its expiration or earlier termination.

21. Headings and Subheadings. Each Party acknowledges and agrees that heading and subheadings used
in this License Agreement have been inserted for the purpose of convenience in referring to its
provisions and, therefore, they shall not be used to interpret or construe any of the provisions of
this License Agreement.

22. Advice of Legal Counsel; Construction. Each Party acknowledges and represents that, in
preparing and negotiating this License Agreement, it has had the opportunity to seek advice with
respect to its rights and obligations under this License Agreement from legal counsel and that the
provisions of this License Agreement shall not be construed against either Party by virtue of its
drafting or preparation. As used herein, the word “including” shall not be deemed to be a word of
limitation, but instead shall be deemed to be followed by the words “without limitation.”

23. Counterparts; Facsimile Transmissions. This License Agreement may be executed in counterparts,
each of which shall be deemed an original and all of which together shall constitute a single
instrument. Each Party acknowledges and agrees that such executed counterparts may be delivered by
a Party to the other Party through the use of facsimile transmission or electronically through the
submission of pdf files.

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     24. Entire Agreement. This License Agreement constitutes the entire agreement between the Parties
as to its subject matter and supersedes and replaces all prior
agreements, letters of intent and/or other communications, whether in written or verbal form,
between the Parties as to its subject matter. This License Agreement may be changed only in a
writing that is signed by authorized representatives of both Parties.

IN WITNESS WHEREOF, the Parties through their duly authorized representatives have
executed this License Agreement to become effective as of the last signature date which is set
forth below.

	 	 	 	 	 	 	 	 	 	 	 
	DOT HILL SYSTEMS CORP.	 	 	 	NETWORK APPLIANCE, INC.	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	/s/ Dana W. Kammersgard	 	 	 	By:	 	/s/ Michael W. Wais	 	 
	 

	 	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Name:

	 	Dana W. Kammersgard
	 	 	 	Name:
	 	Michael W. Wais	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Title:

	 	President & CEO
	 	 	 	Title:
	 	Vice President, Supply Chain Management	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Date:
	 	October 1, 2007	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Date:	 	October 1, 2007	 	 
	 

	 	 	 	 	 	 	 	 	 	 

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Exhibit A

List of Dot Hill Technology

[...***...]

***
Confidential Treatment Requestedexv10w28

 

Exhibit 10.28

OUTDOOR CHANNEL HOLDINGS, INC.

CHANGE OF CONTROL SEVERANCE AGREEMENT

     This Change of Control Severance Agreement (the “Agreement”) is made and entered into by and
between _________ (“Executive”) and Outdoor Channel Holdings, Inc. (the “Company”), effective as
of _________ (the “Effective Date”).

RECITALS

     1. It is expected that the Company from time to time will consider the possibility of an
acquisition by another company or other change of control. The Board of Directors of the Company
(the “Board”) recognizes that such consideration can be a distraction to Executive and can cause
Executive to consider alternative employment opportunities. The Board has determined that it is in
the best interests of the Company and its stockholders to assure that the Company will have the
continued dedication and objectivity of Executive, notwithstanding the possibility, threat or
occurrence of a Change of Control (as defined herein) of the Company.

     2. The Board believes that it is in the best interests of the Company and its stockholders to
provide Executive with an incentive to continue his or her employment and to motivate Executive to
maximize the value of the Company upon a Change of Control for the benefit of its stockholders.

     3. The Board believes that it is imperative to provide Executive with certain severance
benefits upon Executive’s termination of employment following a Change of Control. These benefits
will provide Executive with enhanced financial security and incentive and encouragement to remain
with the Company notwithstanding the possibility of a Change of Control.

     4. Certain capitalized terms used in the Agreement are defined in Section 6 below.

AGREEMENT

     NOW, THEREFORE, in consideration of the mutual covenants contained herein, the parties hereto
agree as follows:

     1. Term of Agreement. This Agreement will terminate upon the date that all of the
obligations of the parties hereto with respect to this Agreement have been satisfied.

     2. At-Will Employment. The Company and Executive acknowledge that Executive’s
employment is and will continue to be at-will, as defined under applicable law. If Executive’s
employment terminates for any reason, including (without limitation) any termination other than in
connection with a Change of Control as provided herein, Executive will not be entitled to any
payments, benefits, damages, awards or compensation other than as provided by this Agreement and
the payment of accrued but unpaid wages, as required by law, and any unreimbursed reimbursable
expenses.

 

 

     3. Severance Benefits.

          (a) Involuntary Termination In Connection with a Change of Control. If in connection
with a Change of Control, (i) Executive terminates his or her employment with the Company (or any
parent, subsidiary or successor of the Company) for “Good Reason” (as defined herein) or (ii) the
Company (or any parent, subsidiary or successor of the Company) terminates Executive’s employment
without “Cause” (as defined herein), and Executive signs and does not revoke the release of claims
required by Section 4, Executive will receive the following severance benefits from the Company:

               (i) Severance Payment. Executive will receive continuing payments of severance pay
(less applicable withholding taxes) for a period of twelve (12) months from the date of such
termination (the “Severance Period”) at a rate equal to Executive’s base salary rate (as in effect
immediately prior to (A) the Change of Control, or (B) Executive’s termination, whichever is
greater).

               (ii) Bonus Payment. Executive will receive a lump sum cash payment (less applicable
withholding taxes) in an amount equal to the sum of (A) an amount equal to the Executive’s full
target bonus for the year in effect at the date of such termination, and (B) an additional amount
equal to the amount set forth in clause (a)(ii)(A), pro-rated to the date of termination, with such
pro-rated amount to be calculated by multiplying the amount set forth in clause (a)(ii)(A) by a
fraction with a numerator equal to the number of days between the start of the current year and the
date of termination and a denominator equal to 365.

               (iii) Equity Awards. All of the Executive’s then outstanding awards relating to the
Company’s common stock (whether stock options, stock appreciation rights, shares of restricted
stock, restricted stock units, or otherwise (collectively, the “Equity Awards”)) will vest in
accordance with and otherwise remain subject to the terms and conditions of the applicable Equity
Award agreement, provided, however, that if such agreement provides that such Equity Awards vest
only in a lump sum after a period of time, e.g. annual cliff-vesting, and do not otherwise provide
for accelerated vesting based upon such Change of Control, then the vesting of such Equity Awards
shall accelerate so that Executive receives the pro-rata vesting (based on time elapsed for the
vesting period in which the termination occurs) of such Equity Awards.

               (iv) Benefits. The Company agrees to reimburse Executive for the same level of health
coverage and benefits as in effect for Executive immediately prior to (A) the Change of Control, or
(B) Executive’s termination, whichever is greater; provided, however, that (1) Executive
constitutes a qualified beneficiary, as defined in Section 4980(B)(g)(1) of the Internal Revenue
Code of 1986, as amended (the “Code”); and (2) Executive elects continuation coverage pursuant to
the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended (“COBRA”), within the time
period prescribed pursuant to COBRA. The Company will continue to reimburse Executive for
continuation coverage through the earlier of (A) the Severance Period, or (B) the date upon which
Executive and Executive’s eligible dependents become covered under similar plans.

2

 

Executive will thereafter be responsible for the payment of COBRA premiums (including, without
limitation, all administrative expenses) for the remaining COBRA period.

          (b) Timing of Severance Payments. Unless otherwise required by Section 10, the
Company will pay the severance payments to which Executive is entitled as salary continuation on
the same basis and timing as in effect for other payroll payments immediately prior to the Change
of Control. The Company will pay the severance payments to which Executive is entitled as bonus
payments in a lump sum as soon as practicable following the date of termination. If Executive
should die before all of the salary continuation severance amounts have been paid, such unpaid
amounts will be paid in a lump-sum payment (less any withholding taxes) promptly following such
event to Executive’s designated beneficiary, if living, or otherwise to the personal representative
of Executive’s estate.

          (c) Voluntary Resignation; Termination For Cause. If Executive’s employment with the
Company terminates (i) voluntarily by Executive (other than for Good Reason) or (ii) for Cause by
the Company, then Executive will not be entitled to receive severance or other benefits except for
those (if any) as may then be established under the Company’s then existing severance and benefits
plans and practices or pursuant to other written agreements with the Company, including, without
limitation, any equity award agreement.

          (d) Disability; Death. If the Company terminates Executive’s employment as a result
of Executive’s Disability, or Executive’s employment terminates due to his or her death, then
Executive will not be entitled to receive severance or other benefits except for those (if any) as
may then be established under the Company’s then existing written severance and benefits plans and
practices or pursuant to other written agreements with the Company, including, without limitation,
any equity award agreement.

          (e) Termination Apart from Change of Control. In the event Executive’s employment is
terminated for any reason, other than as provided in paragraph 3(a), then Executive will be
entitled to receive severance and any other benefits only as may then be established under the
Company’s existing written severance and benefits plans and practices or pursuant to other written
agreements with the Company, including, without limitation, any equity award agreement.

          (f) Exclusive Remedy. In the event of a termination of Executive’s employment as
provided in paragraph 3(a), the provisions of this Section 3 and any Equity Award Agreement are
intended to be and are exclusive and in lieu of any other rights or remedies to which Executive or
the Company may otherwise be entitled, whether at law, tort or contract, in equity, or under this
Agreement (other than the payment of accrued but unpaid wages, as required by law, and any
unreimbursed reimbursable expenses). Executive will be entitled to no benefits, compensation or
other payments or rights upon termination of employment as provided in paragraph 3(a) other than
those benefits expressly set forth in this Section 3, except as may be provided in any Equity Award
Agreement.

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     4. Conditions to Receipt of Severance.

          (a) Release of Claims Agreement. The receipt of any severance or other benefits
pursuant to Section 3 will be subject to Executive signing and not revoking a release of claims
agreement in substantially the form attached as Exhibit A, but with any appropriate
reasonable modifications, reflecting changes in applicable law, as is necessary to provide the
Company with the protection it would have if the release of claims were executed as of the
Effective Date. No severance or other benefits will be paid or provided until the release of
claims agreement becomes effective, and any severance amounts or benefits otherwise payable between
the date of Executive’s termination and the date such release becomes effective shall be paid on
the effective date of such release.

          (b) Non-solicitation. The receipt of any severance or other benefits pursuant to
Section 3 will be subject to Executive agreeing that during the Severance Period, Executive will
not solicit any employee of the Company (other than Executive’s personal assistant) for employment
other than at the Company.

          (c) Non-disparagement. During the Severance Period, Executive will not knowingly and
materially disparage, criticize, or otherwise make any derogatory statements regarding the Company.
During the Severance Period, the Company will not knowingly and materially disparage, criticize,
or otherwise make any derogatory statements regarding Executive. Notwithstanding the foregoing,
nothing contained in this Agreement will be deemed to restrict Executive, the Company or any of the
Company’s current or former officers and/or directors from (1) providing information to any
governmental or regulatory agency (or in any way limit the content of any such information) to the
extent they are requested or required to provide such information pursuant to applicable law or
regulation or (2) enforcing his or its rights pursuant to this Agreement.

          (d) Other Requirements. Executive’s receipt of any payments or benefits under Section
3 will be subject to Executive continuing to comply with the terms of any confidential information
agreement executed by Executive in favor of the Company and the provisions of this Section 4.

          (e) No Duty to Mitigate. Executive will not be required to mitigate the amount of any
payment contemplated by this Agreement, nor will any earnings that Executive may receive from any
other source reduce any such payment.

     5. Limitation on Payments. In the event that the severance and other benefits
provided for in this Agreement or otherwise payable to Executive (i) constitute “parachute
payments” within the meaning of Section 280G of the Code) and (ii) but for this Section 5, would be
subject to the excise tax imposed by Section 4999 of the Code, then Executive’s severance benefits
under Section 3 will be either:

          (a) delivered in full, or

4

 

          (b) delivered as to such lesser extent which would result in no
portion of such severance benefits being subject to excise tax under Section
4999 of the Code,

whichever of the foregoing amounts, taking into account the applicable federal, state and local
income taxes and the excise tax imposed by Section 4999, results in the receipt by Executive on an
after-tax basis, of the greatest amount of severance benefits, notwithstanding that all or some
portion of such severance benefits may be taxable under Section 4999 of the Code. Unless the
Company and Executive otherwise agree in writing, any determination required under this Section 5
will be made in writing by the Company’s independent public accountants immediately prior to a
Change of Control (the “Accountants”), whose determination will be conclusive and binding upon
Executive and the Company for all purposes. For purposes of making the calculations required by
this Section 5, the Accountants may make reasonable assumptions and approximations concerning
applicable taxes and may rely on reasonable, good faith interpretations concerning the application
of Sections 280G and 4999 of the Code. The Company and Executive will furnish to the Accountants
such information and documents as the Accountants may reasonably request in order to make a
determination under this Section. The Company will bear all costs the Accountants may incur in
connection with any calculations contemplated by this Section 5.

     6. Definition of Terms. The following terms referred to in this Agreement will have
the following meanings:

          (a) Cause. For purposes of this Agreement, “Cause” will mean:

               (i) Executive’s willful and continued failure to substantially perform the duties and
responsibilities of his position (other than as a result of Executive’s illness or injury) after
there has been delivered to Executive a written demand for performance from the Board which
describes the basis for the Board’s belief that Executive has not substantially performed his
duties, the duties not being performed, and provides Executive with thirty (30) days to take
corrective action;

               (ii) Any material act of personal dishonesty taken by Executive in connection with his
responsibilities as an employee of the Company with the intention that such action may result in
the substantial personal enrichment of Executive;

               (iii) Executive’s conviction of, or plea of nolo contendere to, a felony that the Board
reasonably believes has had or will have a material detrimental effect on the Company’s reputation
or business;

               (iv) A willful breach of any fiduciary duty owed to the Company by Executive that has a
material detrimental effect on the Company’s reputation or business;

               (v) Executive being found liable in any Securities and Exchange Commission or other civil or
criminal securities law action (regardless of whether or not Executive admits or denies liability),
which the Board determines, in its reasonable discretion, will have a material detrimental effect
on the Company’s reputation or business;

5

 

               (vi) Executive entering any cease and desist order with respect to any action which order
would bar Executive from service as an executive officer or member of a board of directors of any
publicly-traded company (regardless of whether or not Executive admits or denies liability);

               (vii) Executive (A) obstructing or impeding; (B) endeavoring to obstruct or impede, or (C)
failing to materially cooperate with, any investigation authorized by the Board or any governmental
or self-regulatory organization (an “Investigation”). However, Executive’s failure to waive
attorney-client privilege relating to communications with Executive’s own attorney in connection
with an Investigation, or Executive’s assertion of the Company’s attorney-client privilege at the
direction of the Company, will not constitute “Cause”; or

               (viii) Executive’s disqualification or bar by any governmental or self-regulatory organization
from serving in the capacity contemplated by this Agreement, if (A) the disqualification or bar
continues for more than thirty (30) days, and (B) during that period the Company uses its
commercially reasonable efforts to cause the disqualification or bar to be lifted. While any
disqualification or bar continues during Executive’s employment, Executive will serve in the
capacity contemplated by this Agreement to whatever extent legally permissible and, if Executive’s
employment is not permissible, Executive will be placed on administrative leave (which will be paid
to the extent legally permissible).

Other than for a termination pursuant to Section 6(a)(iii), Executive shall receive notice and an
opportunity to be heard before the Board with Executive’s own attorney before any termination for
Cause is deemed effective. Notwithstanding anything to the contrary, the Board may immediately
place Executive on administrative leave (with full pay and benefits to the extent legally
permissible) and suspend all access to Company information, employees and business should Executive
wish to avail himself of his opportunity to be heard before the Board prior to the Board’s
termination for Cause. If Executive avails himself of his opportunity to be heard before the
Board, and then fails to make himself available to the Board within five (5) business days of such
request to be heard, the Board may thereafter cancel the administrative leave and terminate
Executive for Cause.

          (b) Change of Control. For purposes of this Agreement, “Change of Control” will have
the same meaning as “Change in Control” is defined in the Company’s 2004 Long-Term Incentive Plan,
as amended.

          (c) Disability. For purposes of this Agreement, “Disability” shall have the same
meaning as that term is defined in the Company’s 2004 Long-Term Incentive Plan, as amended.
Notwithstanding the foregoing however, should the Company maintain a long-term disability plan at
any time during the term of Executive’s employment, a determination of disability under such plan
shall also be considered a “Disability” for purposes of this Agreement.

          (d) Good Reason. For purposes of this Agreement, “Good Reason” means the occurrence
of any of the following, without Executive’s express written consent:

6

 

               (i) A significant reduction of Executive’s responsibilities; including a reduction in
responsibilities by virtue of the Company being acquired and made part of another entity (as, for
example, when the chief executive officer of the Company remains as the senior executive officer of
a division or subsidiary of the acquiror which division or subsidiary either contains substantially
all of the Company’s business or is of a comparable size), or a change in the Executive’s reporting
position such that Executive no longer reports directly to the chief operating officer of a
publicly-traded company (unless Executive is reporting to the chief operating officer of the parent
corporation in a group of controlled corporations, none of which is a publicly-traded company);

               (ii) A material reduction in the aggregate compensation paid to Executive pursuant to the
Company’s employee benefits package (including Executive’s participation in health plans,
retirement plans and other significant benefit programs) other than pursuant to a reduction that
also is applied to substantially all other executive officers of the Company and that reduces the
level of the aggregate value of the employee benefits by a percentage reduction that is no greater
than 10%;

               (iii) A material reduction in Executive’s base salary or target annual incentive as in effect
immediately prior to such reduction (other than pursuant to a reduction that also is applied to
substantially all other executive officers of the Company and which reduction reduces the base
salary and/or target annual incentive by a percentage reduction that is no greater than 10%);

               (iv) The relocation of Executive to a facility or location more than fifty (50) miles from his
primary place of employment;

               (v) Any purported termination of the Executive’s employment for “Cause” without first
satisfying the procedural protections, as applicable, required by the definition of “Cause” in this
Agreement; or

               (vi) The failure of the Company to obtain the assumption of this Agreement by a successor
and/or acquiror and an agreement that Executive will retain the substantially similar
responsibilities in the acquiror or the merged or surviving company as he had prior to the
transaction.

The notification and placement of Executive on administrative leave pending a potential
determination by the Board that Executive may be terminated for Cause shall not constitute Good
Reason for purposes of this Agreement.

Executive will not resign for Good Reason in connection with a Change of Control without first
providing the Company with written notice (as required by Section 8(b) below) within ninety (90)
days of the event that Executive believes constitutes “Good Reason” specifically identifying the
acts or omissions constituting the grounds for Good Reason and a reasonable cure period of not less
than thirty (30) days following the date of such notice.

7

 

          (e) In connection with a Change of Control. For purposes of this Agreement, “in
connection with a Change of Control” means during that period either three (3) months prior to or
twelve (12) months after a Change of Control, as applicable.

          (f) Section 409A Limit. For purposes of this Agreement, “Section 409A Limit” will
mean the lesser of two (2) times: (i) Executive’s annualized compensation based upon the annual
rate of pay paid to Executive during the Executive’s taxable year preceding the Executive’s taxable
year of Executive’s termination of employment as determined under, and with such adjustments as are
set forth in, Treasury Regulation 1.409A-1(b)(9)(iii)(A)(1) and any Internal Revenue Service
guidance issued with respect thereto; or (ii) the maximum amount that may be taken into account
under a qualified plan pursuant to Section 401(a)(17) of the Code for the year in which Executive’s
employment is terminated.

     7. Successors.

          (a) The Company’s Successors. Any successor to the Company (whether direct or
indirect and whether by purchase, merger, consolidation, liquidation or otherwise) to all or
substantially all of the Company’s business and/or assets will assume the obligations under this
Agreement and agree expressly to perform the obligations under this Agreement in the same manner
and to the same extent as the Company would be required to perform such obligations in the absence
of a succession. For all purposes under this Agreement, the term “Company” will include any
successor to the Company’s business and/or assets which executes and delivers the assumption
agreement described in this Section 7(a) or which becomes bound by the terms of this Agreement by
operation of law.

          (b) Executive’s Successors. The terms of this Agreement and all rights of Executive
hereunder will inure to the benefit of, and be enforceable by, Executive’s personal or legal
representatives, executors, administrators, successors, heirs, distributees, devisees and legatees.

     8. Notice.

          (a) General. Notices and all other communications contemplated by this Agreement will
be in writing and will be deemed to have been duly given when personally delivered or when mailed
by U.S. registered or certified mail, return receipt requested and postage prepaid. In the case of
Executive, mailed notices will be addressed to him or her at the home address which he or she most
recently communicated to the Company in writing. In the case of the Company, mailed notices will
be addressed to its corporate headquarters, and all notices will be directed to the attention of
its President.

          (b) Notice of Termination. Any termination by the Company for Cause or by Executive
for Good Reason will be communicated by a notice of termination to the other party hereto given in
accordance with Sections 6(e) and 8(a) of this Agreement. Such notice will indicate the specific
termination provision in this Agreement relied upon, will set forth in reasonable detail the facts
and circumstances claimed to provide a basis for termination under the provision so indicated, and
will specify the termination date (which, in a notice given under the last paragraph of

8

 

Section 6(e), must be a date at least thirty (30) days after the date of such notice). The
failure by Executive to include in the notice any fact or circumstance which contributes to a
showing of Good Reason will not waive any right of Executive hereunder or preclude Executive from
asserting such fact or circumstance in enforcing his or her rights hereunder.

9

 

     9. Arbitration. THE COMPANY AND THE EXECUTIVE EACH AGREE THAT ANY AND ALL DISPUTES
ARISING OUT OF THE TERMS OF THIS AGREEMENT, EXECUTIVE’S EMPLOYMENT BY THE COMPANY, EXECUTIVE’S
SERVICE AS AN OFFICER OR DIRECTOR OF THE COMPANY, OR EXECUTIVE’S COMPENSATION AND BENEFITS, THEIR
INTERPRETATION AND ANY OF THE MATTERS HEREIN RELEASED, SHALL BE SUBJECT TO BINDING ARBITRATION
UNDER THE ARBITRATION RULES SET FORTH IN CALIFORNIA CODE OF CIVIL PROCEDURE SECTION 1280 THROUGH
1294.2, INCLUDING SECTION 1281.8 (THE “ACT”), AND PURSUANT TO CALIFORNIA LAW. DISPUTES THAT THE
COMPANY AND THE EXECUTIVE AGREE TO ARBITRATE, AND THEREBY AGREE TO WAIVE ANY RIGHT TO A TRIAL BY
JURY, INCLUDE ANY STATUTORY CLAIMS UNDER LOCAL, STATE, OR FEDERAL LAW, INCLUDING, BUT NOT LIMITED
TO, CLAIMS UNDER TITLE VII OF THE CIVIL RIGHTS ACT OF 1964, THE AMERICANS WITH DISABILITIES ACT OF
1990, THE AGE DISCRIMINATION IN EMPLOYMENT ACT OF 1967, THE OLDER WORKERS BENEFIT PROTECTION ACT,
THE SARBANES-OXLEY ACT, THE WORKER ADJUSTMENT AND RETRAINING NOTIFICATION ACT, THE CALIFORNIA FAIR
EMPLOYMENT AND HOUSING ACT, THE FAMILY AND MEDICAL LEAVE ACT, THE CALIFORNIA FAMILY RIGHTS ACT, THE
CALIFORNIA LABOR CODE, CLAIMS OF HARASSMENT, DISCRIMINATION, AND WRONGFUL TERMINATION, AND ANY
STATUTORY OR COMMON LAW CLAIMS. THE COMPANY AND THE EXECUTIVE FURTHER UNDERSTAND THAT THIS
AGREEMENT TO ARBITRATE ALSO APPLIES TO ANY DISPUTES THAT THE COMPANY MAY HAVE WITH THE EXECUTIVE.

          (a) Procedure. THE COMPANY AND THE EXECUTIVE AGREE THAT ANY ARBITRATION WILL BE ADMINISTERED
BY JUDICIAL ARBITRATION & MEDIATION SERVICES, INC. (“JAMS”), PURSUANT TO ITS EMPLOYMENT ARBITRATION
RULES & PROCEDURES (THE “JAMS RULES”). THE ARBITRATOR SHALL HAVE THE POWER TO DECIDE ANY MOTIONS
BROUGHT BY ANY PARTY TO THE ARBITRATION, INCLUDING MOTIONS FOR SUMMARY JUDGMENT AND/OR
ADJUDICATION, MOTIONS TO DISMISS AND DEMURRERS, AND MOTIONS FOR CLASS CERTIFICATION, PRIOR TO ANY
ARBITRATION HEARING. THE ARBITRATOR SHALL HAVE THE POWER TO AWARD ANY REMEDIES AVAILABLE UNDER
APPLICABLE LAW, AND THE ARBITRATOR SHALL AWARD ATTORNEYS’ FEES AND COSTS TO THE PREVAILING PARTY,
EXCEPT AS PROHIBITED BY LAW. THE COMPANY WILL PAY FOR ANY ADMINISTRATIVE OR HEARING FEES CHARGED
BY THE ARBITRATOR OR JAMS EXCEPT THAT THE EXECUTIVE SHALL PAY ANY FILING FEES ASSOCIATED WITH ANY
ARBITRATION THAT THE EXECUTIVE INITIATES, BUT ONLY SO MUCH OF THE FILING FEES AS THE EXECUTIVE
WOULD HAVE INSTEAD PAID HAD HE FILED A COMPLAINT IN A COURT OF LAW. THE ARBITRATOR SHALL
ADMINISTER AND CONDUCT ANY ARBITRATION IN ACCORDANCE WITH CALIFORNIA LAW, INCLUDING THE CALIFORNIA
CODE OF CIVIL PROCEDURE, AND THE ARBITRATOR SHALL APPLY SUBSTANTIVE AND PROCEDURAL CALIFORNIA LAW
TO ANY DISPUTE OR CLAIM, WITHOUT REFERENCE TO RULES OF CONFLICT OF LAW. TO THE EXTENT THAT THE
JAMS RULES CONFLICT

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WITH CALIFORNIA LAW, CALIFORNIA LAW SHALL TAKE PRECEDENCE. THE DECISION OF THE ARBITRATOR
SHALL BE IN WRITING. ANY ARBITRATION UNDER THIS AGREEMENT SHALL BE CONDUCTED IN RIVERSIDE COUNTY,
CALIFORNIA.

          (b) Remedy. EXCEPT AS PROVIDED BY THE ACT AND THIS AGREEMENT, ARBITRATION SHALL BE THE SOLE,
EXCLUSIVE, AND FINAL REMEDY FOR ANY DISPUTE BETWEEN THE EXECUTIVE AND THE COMPANY. ACCORDINGLY,
EXCEPT AS PROVIDED FOR BY THE ACT AND THIS AGREEMENT, NEITHER THE EXECUTIVE NOR THE COMPANY WILL BE
PERMITTED TO PURSUE COURT ACTION REGARDING CLAIMS THAT ARE SUBJECT TO ARBITRATION.

          (c) Administrative Relief. THE EXECUTIVE UNDERSTANDS THAT THIS AGREEMENT DOES NOT PROHIBIT HIM
FROM PURSUING AN ADMINISTRATIVE CLAIM WITH A LOCAL, STATE, OR FEDERAL ADMINISTRATIVE BODY OR
GOVERNMENT AGENCY THAT IS AUTHORIZED TO ENFORCE OR ADMINISTER LAWS RELATED TO EMPLOYMENT,
INCLUDING, BUT NOT LIMITED TO, THE DEPARTMENT OF FAIR EMPLOYMENT AND HOUSING, THE EQUAL EMPLOYMENT
OPPORTUNITY COMMISSION, THE NATIONAL LABOR RELATIONS BOARD, OR THE WORKERS’ COMPENSATION BOARD.
THIS AGREEMENT DOES, HOWEVER, PRECLUDE THE EXECUTIVE FROM PURSUING COURT ACTION REGARDING ANY SUCH
CLAIM, EXCEPT AS PERMITTED BY LAW.

          (d) Voluntary Nature of Agreement. EACH OF THE COMPANY AND THE EXECUTIVE ACKNOWLEDGES AND
AGREES THAT SUCH PARTY IS EXECUTING THIS AGREEMENT VOLUNTARILY AND WITHOUT ANY DURESS OR UNDUE
INFLUENCE BY ANYONE. THE EXECUTIVE FURTHER ACKNOWLEDGES AND AGREES THAT HE HAS CAREFULLY READ THIS
AGREEMENT AND HAS ASKED ANY QUESTIONS NEEDED FOR HIM TO UNDERSTAND THE TERMS, CONSEQUENCES, AND
BINDING EFFECT OF THIS AGREEMENT AND FULLY UNDERSTAND IT, INCLUDING THAT THE EXECUTIVE IS WAIVING
HIS RIGHT TO A JURY TRIAL. FINALLY, THE EXECUTIVE AGREES THAT HE HAS BEEN PROVIDED AN OPPORTUNITY
TO SEEK THE ADVICE OF AN ATTORNEY OF HIS CHOICE BEFORE SIGNING THIS AGREEMENT.

     10. Code Section 409A. Notwithstanding anything to the contrary in this Agreement, if
Executive is a “specified employee” within the meaning of Section 409A of the Code and any final
regulations and guidance promulgated thereunder (collectively “Section 409A”) at the time of
Executive’s termination, and the severance payable to Executive, if any, pursuant to this
Agreement, when considered together with any other severance payments or separation benefits may be
considered deferred compensation under Section 409A (together, the “Deferred Compensation
Separation Benefits”), then only that portion of the Deferred Compensation Separation Benefits
which do not exceed the Section 409A Limit (as defined herein) may be made within the first six (6)
months following Executive’s termination of employment in accordance with the payment schedule
applicable to each payment or benefit. Any portion of the Deferred Compensation Separation
Benefits in excess of the Section 409A Limit otherwise due to Executive on or within the six (6)

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month period following Executive’s termination will accrue during such six (6) month period
and will become payable in a lump sum payment on the date six (6) months and one (1) day following
the date of Executive’s termination of employment. All subsequent Deferred Compensation Separation
Benefits, if any, will be payable in accordance with the payment schedule applicable to each
payment or benefit. It is the intent of this Agreement to comply with the requirements of Section
409A so that none of the severance payments and benefits to be provided hereunder will be subject
to the additional tax imposed under Section 409A, and any ambiguities herein will be interpreted to
so comply.

     11. Miscellaneous Provisions.

          (a) Waiver. No provision of this Agreement will be modified, waived or discharged
unless the modification, waiver or discharge is agreed to in writing and signed by Executive and by
the President of the Company. No waiver by either party of any breach of, or of compliance with,
any condition or provision of this Agreement by the other party will be considered a waiver of any
other condition or provision or of the same condition or provision at another time.

          (b) Headings. All captions and section headings used in this Agreement are for
convenient reference only and do not form a part of this Agreement.

          (c) Choice of Law. The validity, interpretation, construction and performance of this
Agreement will be governed by the laws of the State of California (with the exception of its
conflict of laws provisions).

          (d) Integration. This Agreement represents the entire agreement and understanding
between the parties as to the subject matter herein and supersedes all prior or contemporaneous
agreements whether written or oral. No waiver, alteration, or modification of any of the
provisions of this Agreement will be binding unless in a writing and signed by duly authorized
representatives of the parties hereto. In entering into this Agreement, no party has relied on or
made any representation, warranty, inducement, promise, or understanding that is not in this
Agreement. To the extent that any provisions of this Agreement conflict with those of any other
agreement between the Executive and the Company, the terms in this Agreement will prevail.

          (e) Severability. In the event that any provision or any portion of any provision
hereof becomes or is declared by a court of competent jurisdiction to be illegal, unenforceable, or
void, this Agreement will continue in full force and effect without said provision or portion of
provision. The remainder of this Agreement shall be interpreted so as best to effect the intent of
the Company and Executive.

          (f) Withholding. All payments made pursuant to this Agreement will be subject to
withholding of applicable income and employment taxes.

          (g) Counterparts. This Agreement may be executed in counterparts, each of which will
be deemed an original, but all of which together will constitute one and the same instrument.

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     IN WITNESS WHEREOF, each of the parties has executed this Agreement, in the case of the
Company by its duly authorized officer, as of the day and year set forth below.

	 	 	 	 	 	 
	COMPANY 	
OUTDOOR CHANNEL HOLDINGS, INC.

 	 
	 	By:  	 	 
	 	 	Title: 	 
	 
	 
	EXECUTIVE 	

[EXECUTIVE] 	 

13

 

	 	 	 	 	 

EXHIBIT A

RELEASE OF CLAIMS AGREEMENT

	1.	 	In consideration for the payment of the severance described in the Severance Agreement
by and between _________ (the “Executive”) and Outdoor Channel Holdings, Inc. (the
“Company”), dated as of _________, 20___ (the “Severance Agreement”), the Executive
for himself, and for his heirs, administrators, representatives, executors, successors and
assigns (collectively “Releasers”) does hereby irrevocably and unconditionally release,
acquit and forever discharge the Company, its subsidiaries, affiliates and divisions and
their respective, current and former, trustees, officers, directors, partners,
shareholders, agents, employees, consultants, independent contractors and representatives,
including without limitation all persons acting by, through under or in concert with any of
them (collectively, “Releasees”), and each of them from any and all charges, complaints,
claims, liabilities, obligations, promises, agreements, controversies, damages, remedies,
actions, causes of action, suits, rights, demands, costs, losses, debts and expenses
(including attorneys’ fees and costs) of any nature whatsoever, known or unknown, whether
in law or equity and whether arising under federal, state or local law and in particular
including any claim for discrimination based upon race, color, ethnicity, sex, age
(including the Age Discrimination in Employment Act of 1967), national origin, religion,
disability, or any other unlawful criterion or circumstance, which the Executive and
Releasers had, now have, or may have in the future against each or any of the Releasees,
including under the California Fair Employment and Housing Act (collectively
“Executive/Releaser Actions”).
	 
	2.	 	The Executive acknowledges that: (i) this entire Release is written in a manner
calculated to be understood by him; (ii) he has been advised to consult with an attorney
before executing this Release; (iii) he was given a period of twenty-one days within which
to consider this Release; and (iv) to the extent he executes this Release before the
expiration of the twenty-one day period, he does so knowingly and voluntarily and only
after consulting his attorney. The Executive shall have the right to cancel and revoke this
Release by delivering notice to the Company prior to the expiration of the seven-day period
following the date hereof, and the severance benefits under the Severance Agreement shall
not become effective, and no payments or benefits shall be made or provided thereunder,
until the day after the expiration of such seven-day period (the “Revocation Date”). Upon
such revocation, this Release and the severance provisions of the Severance Agreement shall
be null and void and of no further force or effect.
	 
	3.	 	Notwithstanding anything herein to the contrary, the sole matters to which the Release
does not apply are: (i) the Executive’s rights to indemnification (whether arising under
applicable law, the Company’s certificate of incorporation or bylaws, indemnification
agreement, board resolution or otherwise) and directors and officers liability insurance
coverage to which he was entitled immediately prior to _________ with regard to his service as an
officer or director of the Company; (ii) the Executive’s rights under any tax-qualified
pension or claims for accrued vested benefits or rights under any other employee benefit

 

	 	 	plan, policy or arrangement (whether tax-qualified or not) maintained by the Company or
under COBRA; (iii) the Executive’s rights as a stockholder of the Company, or (iv) the
Executive’s rights pursuant to the Severance Agreement, the Offer Letter and the Equity
Awards Agreements.

	4.	 	This Release is the complete understanding between the Executive and the Company in
respect of the subject matter of this Release and supersedes all prior agreements relating
to the same subject matter. The Executive has not relied upon any representations, promises
or agreements of any kind except those set forth herein in signing this Release.
	 
	5.	 	In the event that any provision of this Release should be held to be invalid or
unenforceable, each and all of the other provisions of this Release shall remain in full
force and effect. If any provision of this Release is found to be invalid or unenforceable,
such provision shall be modified as necessary to permit this Release to be upheld and
enforced to the maximum extent permitted by law.
	 
	6.	 	This Release shall be governed by and construed in accordance with the laws of the
State of California, without reference to principles of conflict of laws.
	 
	7.	 	The parties agree that any and all disputes arising out of, or relating to, the terms
of this Agreement, their interpretation, and any of the matters herein released, shall be
subject to binding arbitration in accordance with the terms of the Severance Agreement.
	 
	8.	 	This Release inures to the benefit of the Company and its successors and assigns.

Signature page follows.

 

     IN WITNESS WHEREOF, the Parties have executed this Agreement on the respective dates set
forth below.

	 	 	 	 	 
	 	OUTDOOR CHANNEL HOLDINGS, INC.

 	 
	Dated: __________________ 	By:  	 	 
	 	 	[OFFICER NAME]	 
	 	 	
[TITLE] 	 
	 
	 
	 	[EXECUTIVE], an individual 	 
	 
	Dated: __________________ 	
 	 
	 	[EXECUTIVE]

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