Amendment No. 1 To Asset Acquisition Agreement

Exhibit 2.3


AMENDMENT NO. 1 TO ASSET ACQUISITION AGREEMENT


This AMENDMENT NO. 1, dated as of January 15, 1999 (this "AMENDMENT"), amends the Asset Acquisition Agreement, dated as of November 24, 1998 (the "AGREEMENT"), by and among Adaptec, Inc., a Delaware corporation ("AIM"), Adaptec Mfg. (S) Pte. Ltd., a wholly-owned Singapore subsidiary of AIM ("AMS" and, together with AIM, "SELLER") and STMicroelectronics, Inc., a Delaware corporation ("PURCHASER"), and the schedules and exhibits thereto.


WHEREAS, Seller and Purchaser mutually desire to supplement and amend certain provisions of the Agreement and the schedules and exhibits thereto, and enter into certain other agreements, the parties agree as follows:


SECTION 1. Supplements and Amendments.


1.1. The definition of "Closing Accounts Receivable" in Section 1.1 of the Agreement shall be deleted.


1.2. The definition of "Inventory" in Section 1.1 of the Agreement shall be supplemented by adding to such definition the following sentences at the end thereof:


Inventory shall also include certain engineering materials associated with
the Products, and the Net Inventory Price Adjustment shall be adjusted
upward for the aggregate actual cost to Seller of such engineering
materials. The summary of the Inventory Adjustments to be delivered by
Seller to Purchaser pursuant to Section 8.2(d) shall include a list of such
engineering materials and their purchase prices.


1.3. Section 2.3 of the Agreement shall be amended by inserting the following immediately after "Adjustment" in the fourth line thereof: minus (z) $216,730.


1.4. Section 2.5(i) of the Agreement shall be amended by inserting immediately after the phrase "sole cost and expense" on the sixth line thereof: "; and provided further, however, that Purchaser shall have the option to delay the delivery of the Business Assets that will be utilized by its employees located at Seller's Milpitas, California and Longmont, Colorado facilities until the termination of the respective Occupancy License Agreements attached hereto as Exhibit C."


1.5. Section 5.13 of the Agreement shall be deleted and replaced in its entirety with the following:


Purchaser shall use all commercially reasonable efforts to assist Seller in
collecting all of Seller's accounts receivable, unbilled receivables, notes
and other amounts receivable from third parties in respect of Products sold
by Seller prior to the Closing.


2


1.6. Section 5.15 of the Agreement (Third Party Tools) shall be deleted and replaced in its entirety with the following:


Seller shall use all commercially reasonable efforts to have those portions
of the licenses to the third party tools specified in Schedule 13
transferred to Purchaser.


1.7. Section 12.14 of the Agreement shall be added as follows:


Purchaser shall use best efforts to provide Seller with binding,
non-cancelable purchase orders corresponding to the following Adaptec
purchase orders:


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SUPPLIER CODE AIC # PO QTY TOTAL $ DESCRIPTION
-------- NAME ----- -- --- ------- -----------
--------------------------------------------------------------------------------------
ADI: Pre-Amp 1304A 45035100 6 Wfrs $73,700 NRE + Eng. Wafers
--------------------------------------------------------------------------------------
TSMC: Pipeline B 43C97B 45036215 6 Wfrs $10,476 Eng. Wafers
--------------------------------------------------------------------------------------
TSMC: Meeker 8387A 45021362 12 Wfrs $12,960 Matrix Lot
--------------------------------------------------------------------------------------


1.8. Schedule 1 to the Agreement (Assumed Liabilities) shall be supplemented by adding to such schedule the following:


Relocation and other costs related to the former employees of Analog
Devices, Inc.


1.9. Schedule 2 to the Agreement (Intangible Assets) shall be supplemented by adding the following three Patents to such schedule:


- ------------------------------- ----------------------- ----------------------- ----------------------
Title Status Inventors Adaptec Code - ------------------------------- ----------------------- ----------------------- ---------------------- Efficient Interpolator For In Process Thomas Conway High Speed Timing Recovery Jason Byrne - ------------------------------- ----------------------- ----------------------- ---------------------- Digital Timing Recovery In Process Thomas Conway Using Baud Rate Sampling Jason Byrne - ------------------------------- ----------------------- ----------------------- ---------------------- A Reduced Computation Open Disclosure Kevin McCall Method For Determining The Signal Amplitude At The Input Of An ADC Samling At Twice Nyquist - ------------------------------- ----------------------- ----------------------- ----------------------


1.10. Schedule 2 to the Agreement (Intangible Assets) shall be supplemented by adding the following Mask Works to such schedule:


2


3


Device Mask Work Registration - ------ ---------------------- 4421AT MW 12-721 8323AQ MW 11-467 8325BM MW 12-789 8375BQ MW 11-682 8375BT MW 11-682 8381AQ MW 12-723 8381BT MW 13-594 8381BU MW 13-594


1.11. Schedule 4 to the Agreement (Products) shall be supplemented by adding the following Products to such schedule:


--------------------------- -------------------------------
DEVICE STATUS
--------------------------- -------------------------------
1394GB ENG
--------------------------- -------------------------------
4421AT PROD
--------------------------- -------------------------------
43C97AM EOL
--------------------------- -------------------------------
5460BP ENG
--------------------------- -------------------------------
5460C1P PROD
--------------------------- -------------------------------
5460C1V PROD
--------------------------- -------------------------------
5463AP ENG
--------------------------- -------------------------------
5463BP ENG
--------------------------- -------------------------------
8323AQ EOL
--------------------------- -------------------------------
8325BM PROD
--------------------------- -------------------------------
8375BQ EOL
--------------------------- -------------------------------
8375BT EOL
--------------------------- -------------------------------
8381AQ EOL
--------------------------- -------------------------------
8381BT EOL
--------------------------- -------------------------------
8381BU PROD
--------------------------- -------------------------------
8391BQ PROD
--------------------------- -------------------------------
8391BU PROD
--------------------------- -------------------------------
43C97 Rev C
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