Document:

exv10w29

 

Exhibit 10.29

IN THE UNITED STATES DISTRICT COURT

FOR THE SOUTHERN DISTRICT OF FLORIDA

	 	 	 
	 

	x	 
	TODD AUGENBAUM,
	 	 
	 
	 	 
	Plaintiff,

	 	Civil Action No. 04-80665
	 
	 	 
	          - against -
	 	 
	 
	 	 
	BG CAPITAL GROUP LTD. and
	 	 
	SPECTRUM SCIENCES AND SOFTWARE
	 	 
	HOLDINGS CORP.,
	 	 
	 
	 	 
	Defendants.
	 	 
	 
	 	 
	 

	x	 
	 
	 	 
	 

	x	 
	TODD AUGENBAUM,
	 	 
	 
	 	 
	Plaintiff,

	 	Civil Action No. 05-80992
	           — against -
	 	 
	 
	 	 
	ROBERT GENOVESE,
	 	 
	 
	 	 
	Defendant.
	 	 
	 

	x	 

STIPULATION AND AGREEMENT OF

COMPROMISE, SETTLEMENT AND RELEASE

     Plaintiff Todd Augenbaum (“Plaintiff”), defendants Robert Genovese (“Genovese”) and BG Capital
Group Ltd. (“BG Capital”)(jointly referred to as the “Defendants”), and nominal defendant Spectrum
Sciences & Software Holdings Corp. (“Spectrum”), by and through their respective attorneys, have
entered into the following Stipulation and Agreement of Compromise, Settlement and Release (the
“Stipulation” or the “Settlement”), subject to the approval of the United States District Court for
the Southern District of Florida (the “Court”) :

 

 

     WHEREAS:

     A. Plaintiff is an owner of Spectrum common stock;

     B. On July 16, 2004, Plaintiff commenced an action against Genovese and BG Capital entitled
Augenbaum v. Robert Genovese, et al., Case No. 04-80665 (the “First Action”), seeking the
disgorgement of short-swing profits alleged to have been realized in violation of Section 16(b) of
the Securities Exchange Act of 1934;

     C. Spectrum was named as a nominal defendant on whose behalf the First Action was brought;

     D. On August 30, 2005, the Court dismissed the First Action against Genovese without prejudice
for failing to serve Genovese with process;

     E. On November 4, 2005, Plaintiff commenced a second action against Genovese entitled
Augenbaum v. Robert Genovese, Case No. 05-80992 (the “Second Action” and together with the First
Action referred to collectively as the “Actions”), seeking disgorgement of the same short-swing
profits alleged to have been realized by Genovese in the First Action;

     F. Following arm’s length negotiations by counsel for the parties hereto, such parties desire
to settle and resolve the Actions in accordance with the terms and conditions contained herein.

     NOW, THEREFORE, IT IS STIPULATED AND AGREED, by the parties hereto, in consideration for the
releases and payments contemplated herein, as follows:

The Settlement

     1. The claims raised by the Plaintiff against the Defendants in the Actions shall be dismissed
with prejudice on the merits and Defendants shall be deemed fully, finally and forever released
from such claims whether such claims are raised by Spectrum or on its behalf by Plaintiff or any
other shareholder of Spectrum, in consideration for the payment of $3,250,000 (the “Settlement
Amount”) to Spectrum.

     2. The parties agree that, unless otherwise ordered by the Court, Abraham Fruchter & Twersky
LLP (“AF&T”), counsel for Plaintiff, shall receive, in the manner provided for

 

 

below, 30% of the Settlement Amount ($975,000) as payment of their attorneys’ fees and
reimbursement for any expenses they or their co-counsel incurred or accrued.

     3. Upon execution of the Stipulation, Defendants shall deliver the following items (“Escrow
Items”) to Zuckerman Spaeder LLP (the “Escrow Agent”) to be held in escrow in accordance with the
terms of escrow set forth herein:

	 	a.	 	A promissory note and confession of judgment (the “Note and
Judgment”) duly executed by BG Capital and payable to Spectrum in the amount
$2,450,000 in the form annexed hereto as Exhibit A;
	 
	 	b.	 	The sum of $800,000 (the “First Payment”), which, following
final Court approval as defined below, shall be paid to AF&T as partial payment
of their attorneys’ fees and reimbursement of expenses; and
	 
	 	c.	 	One million shares of Spectrum common stock (the “Escrow Common
Stock”), which shall secure the payment of Defendants’ obligations as set forth
herein.

The Note and Judgment

     4. The Note and Judgment shall provide for the principal payment of $175,000 (the “Second
Payment”) to be due and payable within six months of final Court approval of the Settlement, and
for the principal balance in the amount of $2,275,000 (the “Final Payment”), to be due and payable
within eighteen months of final Court approval of the Settlement.

     5. The Second Payment shall be paid directly to AF&T, as payment of the balance of their
attorney’s fees and expenses.

     6. The Final Payment shall consist of the payment of $2,275,000 to Spectrum.

     7. The Final Payment may be satisfied with tender of Spectrum Sciences’ common stock valued at
the closing market price on the date of delivery; provided, however, that all payments to AF&T
shall be payable in U.S. dollars.

     8. The Note and Judgment shall not provide for the accrual of interest except in the event of
default at which time interest shall accrue at the statutory rate then in effect in Florida

 

 

pursuant to Florida Stat., Section 55.03.

     9. In the event of default, Spectrum may file the Note and Judgment as appropriate and/or take
any and all actions necessary for its enforcement.

Court Approval

     10. As soon as is practicable following execution of the Stipulation, the parties hereto shall
jointly move the Court without notice to shareholders unless otherwise ordered by the Court to
enter an Order (the “Order and Final Judgment”): (1) approving the terms of the Settlement; (2)
dismissing the Actions with prejudice on the merits; and (3) retaining jurisdiction with regard to
any disputes or enforcement proceedings concerning the terms of Settlement.

     11. The parties and their attorneys agree to cooperate fully with one another and use their
best efforts in seeking the Court’s approval of the Settlement and giving effect to its terms and
conditions, including the preparation and execution of any necessary documents or pleadings before
the Court.

     12. The Court will be deemed to have approved the Settlement upon issuance of the Order and
Final Judgment and final Court approval shall be deemed to have occurred upon expiration of the
time to appeal such Order and Final Judgment or, if an appeal is taken of such Order and Final
Judgment, upon entry of an appellate court order affirming the Order and Final Judgment, and the
expiration of the time for filing any further appeal or petition for review.

     13. The Stipulation is in all respects conditioned upon the Court’s approval of the Settlement
as described above. The Stipulation shall be null and void and of no force and effect should this
condition not be met and, in that event, the Stipulation shall not be deemed to prejudice in any
way the positions of the parities with respect to the Action and each of the parties shall be
deemed to be in the position they were in prior to the execution of the Stipulation.

Terms of Escrow

     14. In the event the Court fails to approve the Settlement or if an appeal of the Order and
Final Judgment is taken, upon entry of an order reversing the Order and Final Judgment, the

 

 

Escrow Agent shall immediately thereafter, subject to the notice provisions contained herein
release to the Defendants the Escrow Items above, which include:

	 	a.	 	The duly executed Note and Judgment;
	 
	 	b.	 	The sum of $800,000; and
	 
	 	c.	 	The Escrow Common Stock.

     15. In the event the parties obtain final Court approval of the Settlement, the following
terms and conditions shall apply to the Escrow Items:

	 	a.	 	The Escrow Agent shall immediately following the granting of
final Court approval, subject to the notice provisions contained herein,
release from escrow and deliver to Squire, Sanders & Dempsey, L.L.P., counsel
for Spectrum, the Note and Judgment;
	 
	 	b.	 	The Escrow Agent shall immediately following the granting of
final Court approval, subject to the notice provisions contained herein,
release from escrow and deliver to AF&T the sum of $800,000, as partial payment
of their attorneys’ fees and expenses; and
	 
	 	c.	 	The Escrow Common Stock shall remain in escrow with the Escrow
Agent subject to the following terms and conditions:

	 	i.	 	The Escrow Common Stock shall not be pledged or
used in any respect to secure any debts or obligations aside from
Defendants’ obligations hereunder;
	 
	 	ii.	 	Defendants may direct the Escrow Agent to
release shares of Escrow Common Stock to Spectrum for the purpose of
satisfying the Second and Final Payments; provided, however, that all
payments to AF&T shall be payable in U.S. dollars;
	 
	 	iii.	 	In the event the Defendants fail to satisfy
their obligations concerning either the Second or Final payments, AF&T
and/or Spectrum may immediately following the date such

 

 

	 	 	 	payments are due direct the Escrow Agent to either release Escrow
Common Stock to each of them respectively in an amount sufficient to
satisfy any obligations to them, with such Common Stock to be valued
in accordance with the closing market price on the date of release or
release to each of them respectively proceeds from the disposition of
Escrow Common Stock, if any, in an amount sufficient to satisfy any
obligations to them.

     16. Any direction given to the Escrow Agent to release any Escrow Items and/or proceeds shall
be served on the Escrow Agent and counsel to the parties hereto in the manner described below for
the service of notice.

     17. In the event the Escrow Agent is directed and/or required under this Settlement Agreement
to release any Escrow Items and/or proceeds, the Escrow Agent shall promptly serve notice on
counsel for each of the parties hereto of the Escrow Agent’s intent to release such Escrow Items
and/or proceeds.

     18. In the event any party hereto objects to the release of Escrow Items and/or proceeds, they
shall notify the Escrow Agent accordingly in the manner provided for herein within seven days of
the date of service of the Escrow Agent’s notice of intent to release Escrow Items and/or
proceeds. In the event the Escrow Agent does not receive a timely notice of objection, the Escrow
Agent shall release the Escrow Items and/or proceeds as directed and/or required. In the event the
Escrow Agent receives a timely notice of objection, the Escrow Agent shall not release the Escrow
Items and/or proceeds and shall continue to hold the Escrow Items and/or proceeds until otherwise
directed by joint notice from the parties hereto or by a final, non-appealable judgment, order or
court decree. Any dispute that may arise concerning the release of Escrow Items or the proceeds
thereof shall be subject to the continuing exclusive jurisdiction of the Court from which a
resolution of the dispute shall be sought. If a dispute should arise concerning the Escrow Items
and/or proceeds, the Escrow Agent may deposit the Escrow Items and/or proceeds with the clerk of
the Court and shall notify the parties hereto accordingly.

 

 

     19. By signing this Stipulation on the place indicated on the signature page, the Escrow Agent
agrees to the terms and conditions of escrow set forth in the Stipulation.

     20. The Escrow Agent shall not be liable to any of the parties hereto for any expense, loss or
damage suffered by or occasioned by reason of any action taken or omitted to be taken by the Escrow
Agent pursuant to this Agreement or in connection therewith unless caused by the willful default of
the Escrow Agent, in which event the extent of the liability of the Escrow Agent shall be limited
to the market value of the Escrow Fund at the date of discovery of the loss and in no circumstances
shall the Escrow Agent be liable for any special, general, or consequential damages, even if the
Escrow Agent has been advised of the possibility of such damages. For purposes of this Agreement,
Escrow Agent shall include its parents, associates, employees and agents.

Notice

     21. Any notice, direction, and/or demand to be given or made by the parties hereunder shall
be served by facsimile transmission and overnight delivery upon counsel for the parties hereto and
upon the Escrow Agent as applicable.

Miscellaneous

     22. The administration of the Settlement, enforcement of its terms and decisions concerning
any disputes that may arise under the Stipulation, whether relating to questions of law and fact,
shall be subject to the continuing jurisdiction of the Court. Notwithstanding the foregoing,
Spectrum may file and/or record the Note and Confession of Judgment with a state or county agency,
department or office designated for such purposes.

     23. This Stipulation and all negotiations, statements, proceedings, and documents related to
it are not, and shall not be construed to be, an admission by any of the parties respecting the
validity or the invalidity of any of the claims asserted in the Action, or of the liability of any
party with respect to any such claims or any alleged wrongdoing whatsoever, and shall not be
offered by any party or person for any evidentiary purpose, including as an

 

 

admission of any such liability or wrongdoing or for the validity or invalidity of any of the
claims in the Action or any other action.

     24. This Stipulation shall be binding upon and inure to the benefit of the parties hereto and
their respective successors and assigns.

     25. Without further order of the Court, the parties may agree to reasonable extensions of time
to carry out any of the provisions of this Stipulation.

     26. This Stipulation constitutes the entire agreement of the parties with respect to the
subject matter hereof and may not be amended, or any of its provisions waived, except by a writing
executed by all of the parties hereto.

     27. This Stipulation may be executed in one or more counterparts, all of which shall be
considered on and the same agreement, and shall become effective when such counterparts have been
signed by counsel for each of the parties and delivered to counsel for the other parties.

     28. This Stipulation shall be considered to have been negotiated, executed, delivered and
wholly performed in the State of New York, and shall be construed and enforced in accordance with,
and governed by the laws of the State of New York without giving effect to that state’s choice of
law principles.

	 	 	 	 	 	 	 
	DATED: November 17, 2005	 	ABRAHAM FRUCHTER & TWERSKY LLP

One Penn Plaza, Suite 2805

New York, NY 10119

Tel: (212) 279-5050

Fax: (212) 279-3655
	 
	 	 	 	 	 	 
	 

	 	By:
	 	 /s/ Mitchell M.Z. Twersky	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	     Mitchell M.Z. Twersky*	 	 
	 

	 	 	 	     Ximena Skovron	 	 
	 

	 	 	 	     (*Admitted Pro Hac Vice)	 	 

 

 

	 	 	 	 	 	 	 
	 	 	LERACH COUGHLIN STOIA GELLER
RUDMAN & ROBBINS LLP
	 	 	197 S. Federal Highway, Suite 200

Boca Raton, FL 33432-4946

Tel: (561) 750-3000

Fax: (561) 750-3364	 	 
	 
	 	 	 	 	 	 
	 	 	Counsel for Plaintiff Todd Augenbaum	 	 
	 
	 	 	 	 	 	 
	 	 	ZUCKERMAN SPAEDER LLP	 	 
	 	 	1800 M Street, N.W.

Washington, DC 20036

Tel.: (202) 778-1800

Fax: (202) 822-8106	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Graeme W. Bush	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	     Graeme W. Bush	 	 
	 

	 	 	 	     (Admitted Pro Hac Vice)	 	 
	 
	 	 	 	 	 	 
	 	 	ZUCKERMAN SPAEDER LLP	 	 
	 	 	201 South Biscayne Boulevard

Miami, FL 33131

Tel: (305) 358-5000

Fax: (305) 579-9749	 	 
	 
	 	 	 	 	 	 
	 	 	Counsel for Defendants Robert Genovese, BG
Capital Group, Ltd., and as Escrow Agent	 	 
	 
	 	 	 	 	 	 
	 	 	SQUIRE, SANDERS & DEMPSEY LLP
	 	 	1201 Pennsylvania Ave., N.W.

Washington, DC 20004-0407

Tel: 202-626-6600	 	 
	 	 	Fax: 202-626-6780	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	 /s/ James P. Murphy	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	     James P. Murphy	 	 
	 

	 	 	 	     (Admitted Pro Hac Vice)	 	 

 

 

	 	 	 	 	 	 	 
	 	 	SQUIRE, SANDERS & DEMPSEY LLP	 	 
	 	 	200 South Biscayne Boulevard, Suite 4000

Miami, FL 33131-2398	 	 
	 	 	Tel: (305) 577-7078	 	 
	 	 	Fax: (305) 358-7001	 	 
	 
	 	 	 	 	 	 
	 	 	Counsel for Spectrum
Sciences & Software Holding 
  Corp.exv10w30

 

Exhibit 10.30

SETTLEMENT AND STANDSTILL AGREEMENT

     This SETTLEMENT AND STANDSTILL AGREEMENT (this “Agreement”) is dated as of November
17, 2005 by and among Spectrum Sciences & Software Holdings Corp., a Delaware corporation
(“Spectrum”), BG Capital Group Ltd., a Bahamian corporation (“BG”), and Robert
Genovese, an individual (“Genovese”). Spectrum, BG and Genovese are sometimes collectively
referred to herein as the “Parties” and individually as a “Party.”

RECITALS

     WHEREAS, BG, Genovese and Spectrum, by and through their respective attorneys, have entered
into a Stipulation and Agreement of Compromise, Settlement and Release, a copy of which is attached
hereto as Exhibit A (the “Stipulation”), in connection with Civil Action Nos.
04-80665 and 05-80992 filed by Todd Augenbaum (“Plaintiff”) in the United States District
Court for the Southern District of Florida (the “Court”);

     WHEREAS, pursuant to the Stipulation, BG and Genovese have agreed to pay a settlement amount
of $3,250,000, of which (i) an initial payment of $800,000 is to be paid directly to Abraham
Fruchter & Twersky LLP (“AF&T”) as partial payment of Plaintiff’s attorneys’ fees and
expenses following final Court approval of the Stipulation, and (ii) $2,450,000 is payable to or
for the benefit of Spectrum pursuant to a promissory note and confession of judgment executed by
BG, a copy of which is attached hereto as Exhibit B (the “Note”).

     WHEREAS, the Note provides for (i) a principal payment of $175,000 (the “Second
Payment”) within six months of final Court approval of the Stipulation (the “Second Payment
Date”), and (ii) a principal payment of $2,275,000 (the “Final Payment”) within
eighteen months of final Court approval of the Stipulation;

     WHEREAS, the Stipulation and the Note provide that the Second Payment shall be payable
directly to AF&T for the balance of Plaintiff’s attorneys’ fees and expenses and the Final Payment
shall be payable to Spectrum;

     WHEREAS, the Stipulation provides that the Final Payment may be satisfied with tender of
Spectrum’s common stock valued at the closing market price of Spectrum’s common stock on the date
of delivery thereof;

     WHEREAS, pursuant to the Stipulation, BG and Genovese have delivered to Zuckerman Spaeder LLP
(the “Escrow Agent”) one million shares of Spectrum common stock (the “Escrow Common
Stock”) to secure the payment of BG’s and Genovese’s obligations set forth in the Stipulation
and the Note; and

     WHEREAS, the Parties’ desire to modify the payment terms with respect to the Second and Final
Payments due to Spectrum in consideration for the agreements and covenants of BG

 

 

and Genovese set forth herein.

     NOW, THEREFORE, in consideration of the foregoing, and for other good and valuable
consideration, the receipt and adequacy of which are hereby acknowledged, the Parties hereto agree
as follows:

AGREEMENT

          1. Incorporation by Reference. All Recitals set forth above are hereby incorporated
by reference into this Section 1 as if they were set forth in full herein.

          2. Modification of Terms of Second and Final Payments to Spectrum.

               (a) Notwithstanding any provision of the Stipulation or the Note to the contrary, and subject
to subsection (b) below, the Parties acknowledge and agree that:

                    (i) BG and Genovese shall direct the Escrow Agent in accordance with provisions of the
Stipulation to sell such number of shares of the Escrow Common Stock as is necessary to pay the
Second Payment, and to deliver to AF&T the proceeds resulting from such sale no later than the
Second Payment Date;

                    (ii) BG and Genovese shall direct the Escrow Agent in accordance with the provisions of the
Stipulation to release to Spectrum no later than the Second Payment Date the remainder of the
shares of the Escrow Common Stock;

               (b) Notwithstanding the provisions of subsection 2(a) above, Spectrum may elect, by giving
notice to BG and Genovese not less than thirty days prior to the Second Payment Date, to receive
all of the shares of the Escrow Common Stock in complete satisfaction of BG’s and Genovese’s
obligations with respect to the Second and Final Payments, in which case BG and Genovese shall
direct the Escrow Agent to release the Escrow Common Stock to Spectrum no later than the Second
Payment Date; provided, however, that, prior to or contemporaneously with the
release of the Escrow Common Stock to Spectrum, Spectrum shall pay the Second Payment to AF&T in
U.S. dollars in accordance with the terms of the Stipulation and the Note. In the event Spectrum
fails to provide such notice, Spectrum shall be deemed to have waived the right to make the
election granted under this subsection 2(b).

               (c) Following payment of the Second Payment and delivery of the Escrow Common Stock in
accordance with subsections 2(a) or 2(b) above, BG and Genovese shall have no further obligations
with respect to the Second and Final Payments or otherwise under the Stipulation or the Note.

          3. Agreement Not To Sell Escrow Common Stock. Notwithstanding any provision of the
Stipulation to the contrary, BG and Genovese hereby agree not to direct the Escrow Agent to sell
the Escrow Common Stock more than thirty days prior to the Second Payment Date, except as may be
required by the Stipulation or by law.

 

 

          4. Agreement to Stand Still.

               (a) Each of BG and Genovese hereby agrees that, effective as of the date hereof and until the
Standstill Termination Date (as defined below), without the prior written consent of Spectrum,
specifically expressed in a resolution adopted by the Board of Directors of Spectrum, it will not
and will cause its Affiliates (as defined below) to not:

                    (i) acquire, directly or indirectly (including through the exercise of any options), any
Securities (as defined below) of Spectrum;

                    (ii) make, or in any way participate, directly or indirectly, in any “solicitation” (as such
term is used in the proxy rules of the Securities and Exchange Commission as in effect on the date
hereof) of proxies or consents (whether or not relating to the election or removal of directors),
seek to advise, encourage or influence any person with respect to the voting of any Securities,
initiate, propose or otherwise “solicit” (as such term is used in the proxy rules of the Securities
and Exchange Commission as in effect on the date hereof) stockholders of Spectrum for the approval
of stockholder proposals whether made pursuant to Rule 14a-8 of the Securities Exchange Act of
1934, as amended (the “Exchange Act”), or otherwise, or induce or attempt to induce any
other person to initiate such stockholder proposal;

                    (iii) seek, propose, or make any statement with respect to, any merger, consolidation,
business combination, tender or exchange offer, sale, or purchase of assets, sale or purchase of
securities, dissolution, liquidation, restructuring, recapitalization or similar transaction of or
involving Spectrum or any of its Affiliates;

                    (iv) form or cause the formation of, join or in any way participate, directly or indirectly,
in a “group” (within the meaning of Section 13(d)(3) of the Exchange Act) with respect to any
Securities of Spectrum;

                    (v) otherwise act, alone or in concert with others, to control or seek to control the
management, Board of Directors or policies of Spectrum;

                    (vi) seek, alone or in concert with others, the removal of any member of the Board of
Directors of Spectrum;

                    (vii) make any publicly disclosed proposal with respect to Spectrum or any of its Affiliates;

                    (viii) issue any press release or make any published statement regarding the business of
Spectrum;

                    (ix) make any proposal, statement or inquiry, or disclosing any intention, plan or arrangement
(whether written or oral) inconsistent with the foregoing, or disclose any request to amend, waive
or terminate any provision of this Agreement;

                    (x) enter into any arrangements, understandings or agreements

 

 

(whether written or oral) with, or advise, finance, assist or encourage, any other person to take
any action which BG and Genovese would be prohibited from taking under this Section 4; and

                    (xi) communicate directly or indirectly with any director, officer, employee or other agent of
Spectrum with respect to any information which would constitute material non-public information
relating to Spectrum under federal securities laws.

               (b) For purposes of this Agreement, an “Affiliate” of a person shall have the meaning
set forth in Rule 12b-2 of the Exchange Act as in effect on the date hereof and, in addition, shall
include “Associates” (as defined in Rule 12b-2) of the Exchange Act as in effect on the date
hereof) of such person and its Affiliates.

               (c) The term “Securities” shall mean the shares of common stock and other securities
of Spectrum, as the context implies, entitled to vote generally in the election of directors, any
other securities (including, without limitation, rights and options) convertible into, exchangeable
for or exercisable for, any of the foregoing (whether or not presently convertible, exchangeable or
exercisable), or any indebtedness of Spectrum.

               (d) The “Standstill Termination Date” shall be December 31, 2008.

          5. Confidential Information and Materials.

               (a) BG and Genovese agree that during the course of their relationship with Spectrum, they or
their affiliates have obtained and may obtain in the future certain Confidential Information.
“Confidential Information” is information concerning Spectrum which Spectrum attempts to
keep confidential, has not been publicly disclosed by Spectrum, is not a matter of common knowledge
in its industry, including, but not limited to, certain information relating to the business plans,
trade practices, finances, accounting methods, methods of operations, trade secrets, marketing
plans or programs, forecasts, statistics relating to markets, contracts, customers, compensation
arrangements, and business opportunities.

               (b) Each of BG and Genovese agrees that the Confidential Information is proprietary to
Spectrum, and to take the following steps to preserve the confidential and proprietary nature of
the Confidential Information:

                    (i) until the Standstill Termination Date, BG and Genovese shall not, and shall cause their
Affiliates not to, use, disclose or otherwise permit any person or entity access to any
Confidential Information other than as agreed to by Spectrum or as may be required to be disclosed
by law or by any court, administrative agency, or arbitration panel; and

                    (ii) until the Standstill Termination Date, other than as agreed to by Spectrum or as may be
required to be disclosed by law or by any court, administrative agency, or arbitration panel, BG
and Genovese shall take, and shall cause their Affiliates to take, all reasonable precautions to
prevent disclosure of Confidential Information (including disclosure by agents or representatives)
to unauthorized persons or entities.

 

 

          6. Remedies. It is understood and agreed that money damages would not be a sufficient
remedy for any breach of this Agreement by any Party hereto and that the non-breaching Party shall
be entitled to equitable relief, including injunction and specific performance, as a remedy for any
such breach. Such remedies shall not be deemed to be the exclusive remedies for a breach of this
Agreement, but shall be in addition to all other remedies available at law or equity to the
non-breaching Party. In the event of litigation relating to this Agreement, if a court of
competent jurisdiction determines that a Party has breached this Agreement, such breaching Party
shall be liable for and pay to the other Party on demand the legal fees and expenses incurred by
the non-breaching Party in connection with such litigation, including any appeal therefrom.

          7. Waivers and Amendments. No failure or delay by any Party in exercising any right,
power or privilege hereunder shall operate as a waiver thereof, nor shall any single or partial
exercise thereof preclude any other or future exercise thereof or the exercise of any other right,
power or privilege hereunder. No provision of this Agreement can be amended without the specific
written consent of the Parties hereto.

          8. Choice of Law/Consent to Jurisdiction.

          (a) The validity, interpretation, performance and enforcement of this Agreement shall be
governed by the laws of the State of New York without regard to the conflict of laws principles
thereof.

          (b) In the event any Party brings any action, suit or proceeding against the other arising out
of or relating to this Agreement, each Party hereby irrevocably and unconditionally consents to the
jurisdiction of the federal and state courts of the State of New York for such action, suit or
proceeding arising out of or relating to this Agreement, and agrees not to commence any action,
suit or proceeding related thereto except in such courts. Each Party further hereby irrevocably
and unconditionally waives any objection to the laying of venue of any action, suit or proceeding
arising out of or relating to this Agreement in the federal and state courts of the State of New
York, and hereby further irrevocably and unconditionally waives and agrees not to plead or claim in
any such court that any such action, suit or proceeding brought in any such court has been brought
in an inconvenient forum.

          (c) Each Party hereto further agrees that service of any process, summons, notice or document
by U.S. registered mail to its address shall be effective service of process for any action, suit
or proceeding brought against it in any such court.

          9. Termination. In the event the Court does not approve the Stipulation, this
Agreement shall be rendered null and void and of no further force and effect.

          10. Notices. Any notice, direction, and/or demand to be given or made by the Parties
shall be given in accordance with the notice provisions set forth in the Stipulation.

          11. Counterparts. For the convenience of the Parties, any number of counterparts of
this Agreement may be executed by the Parties hereto. Each such counterpart shall be, and shall be
deemed to be, an original instrument, but all such counterparts taken together shall

 

 

constitute one and the same Agreement.

          12. Successors and Assigns. The benefits of this Agreement shall inure to the
respective successors and assigns of the Parties hereto, and the obligations and liabilities
assumed in this Agreement by the Parties hereto shall be binding upon their respective successors
and assigns. No Party may assign any of its duties, rights or obligations hereunder without the
prior written consent of the other Parties.

          13. Entire Agreement. This Agreement, together with the Exhibits, embodies the entire
agreement and understanding of the Parties hereto and supersedes any and all prior agreements,
arrangements and understandings relating to the matters provided for herein. No alteration,
waiver, amendment, change or supplement hereto shall be binding or effective unless the same is set
forth in writing signed by a duly authorized representative of each Party and may be modified or
waived only by a separate letter executed by each Party expressly so modifying or waiving this
Agreement.

          14. Severability. The covenants and agreements contained in this Agreement are
separate and severable and the invalidity or unenforceability of any one or more of such covenants
or agreements, if not material to the arrangement that is the basis for this Agreement, shall not
affect the validity or enforceability of any other covenant or agreement contained in this
Agreement. If, in any judicial proceeding, a court shall refuse to enforce one or more of the
covenants or agreements contained in this Agreement because the duration thereof is too long, it is
expressly agreed between the Parties to this Agreement that such duration shall be deemed reduced
to the extent necessary to permit the enforcement of such covenants or agreements.

[Signature Pages Follow]

 

 

     IN WITNESS WHEREOF, the Parties hereto have executed or caused this Agreement to be executed
as of the day and year first written above.

	 	 	 	 	 	 	 
	 	 	SPECTRUM SCIENCES & SOFTWARE
HOLDINGS CORP.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Michael Megless	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name: Michael Megless

Title: Vice President and CFO	 	 
	 
	 	 	 	 	 	 
	 	 	BG CAPITAL GROUP, LTD.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Robert Genovese	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name: Robert Genovese

Title: President	 	 
	 
	 	 	 	 	 	 
	 	 	ROBERT GENOVESE	 	 
	 
	 	 	 	 	 	 
	 	 	/s/ Robert Genovese	 	 
	 	 	 	 	 

 

 

Exhibit A

STIPULATION AND AGREEMENT OF

COMPROMISE, SETTLEMENT AND RELEASE

(intentionally
omitted — on file with the registrant)

 

 

Exhibit B

NON-INTEREST BEARING CONFESSED

JUDGMENT PROMISSORY NOTE

(intentionally
omitted — on file with the registrant)

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00100-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00100-of-00352.parquet"}]]