<PAGE> 1
Exhibit 10.7
[Letterhead of Ancor Communications, Inc.]
Date: November 23, 1999
To: Nick Hannon
Front Cal Nelson
Subject: Amendment to the Technology License Agreement
Ref: Section 4.3 Additional Development
The design and development services requested of Ancor Communications by INRANGE
Technologies has expanded from the requirements defined in the Technology
Agreement dated September 29, 1998. The new development requirements are
delineated in revision 1.07 of the Functional Requirements Document dated
November 18, 1999. This FRD document is attached.
As a result, the development fees identified in section 4.2 of the Technology
Agreement has increased from the original $* to $*. The development cost
estimate increase is derived from discussions between Cal Nelson, Cliff
Oberholtzer, Jean Santoro, and Jayne Fitzgerald in December 1998; documents
reviewed in Minneapolis between Cal Nelson, Thomas Raeuchle, Harry Paul, and
Cliff Oberholtzer on March 25, 1999; as well as discussions with Nick Hannon in
September 1999.
The breakdown is:
Additional Ancor Development
o Hot Swap (items 2 and 7) = * months
o CD/9000 Ethernet (item 10) = * months
o FC/9000 Spares Path hardware (item 8) = * months
o Contingent additional INRANGE funding = * months
o Total under Section 4.3 = * Staff Months
Reduced Ancor Development (Credit)
o Credit for Bill Hughes work at Ancor = * months, (work between
February and August of 1999)
o Credit for not doing FC/9000 Class One Multistage development = * months
o Total credit = * months
Net Funding Requirement from INRANGE to Ancor = * Months at $* per
staff month = $*
This change to the development fees was reviewed and agreed to by you during our
discussions in September 1999.
<PAGE> 2
We recommend this addition to the fees be paid in three installments as with the
original cost of development. A payment of $* is now due and payable before
year-end. The remaining $* is payable; $* upon on completion of the Beta level
design, and $* upon final release. These milestones have been previously defined
in the Technology Agreement.
On behalf of INRANGE Technologies and Ancor Communications we agree to all of
the above as well as agree that Revision 1.07 of the Functional Requirements
Document dated November 18, 1999 shall be the basis for all discussion and going
forward.
Ancor Communications INRANGE Technologies
/s/ Cal Nelson /s/ Greg Grodhaus
------------------------- --------------------------
Cal Nelson GREG GRODHAUS
Pres/CEO
11/29/99
