Document:

United States Securities and Exchange Commission EDGAR Filing

EXHIBIT 10.11

							
	

	   

	Bio-Rad

Laboratories

	   

	Corporate Offices

1000 Alfred Nobel Drive

Hercules, California 94547

Telephone: (510) 724-7000

Facsimile: (510) 741-5815

	   

	     

 

Cindy Barlow

Executive Legal Assistant

Direct: (510) 741-6184

E-Mail: cindy_barlow@biorad.com

	 

	 
	 
	 
	 
	 
	 

November 1, 2007

VIA FEDERAL EXPRESS

Linda Thomas

Billings & Solomon, P.L.L.C.

2777 Allen Parkway

Houston, Texas 77019

Subject:

Settlement Agreement and Release of All Claims

Between Bio-Rad Laboratories, Inc. and

Power3 Medical Products, Inc.

Dear Mr. Thomas:

At the request of Adam Pressman, please find enclosed one (1) fully executed and notarized original of the above-identified document for your records.

Thank you for your assistance in this matter.

		
	Kind regards,

	 

	 
	 

	

	 

	Cindy Barlow

	 

	Executive Legal Assistant

	 

	 

	 

	Enclosure

	 

Cause No. 06-07-06818

					
	POWER3 MEDICAL PRODUCTS, INC.

	        

	§

	        

	IN THE DISTRICT COURT OF

	     Plaintiff

	 
	§

	 
	 

	 
	 
	§

	 
	 

	vs.

	 
	§

	 
	MONTGOMERY COUNTY, TEXAS

	 
	 
	§

	 
	 

	BIO-RAD LABORATORIES, INC.

	 
	§

	 
	 

	     Defendant

	 
	§

	 
	359th JUDICIAL DISTRICT  

SETTLEMENT AGREEMENT AND RELEASE OF ALL CLAIMS

This Settlement Agreement (hereinafter the “Agreement”) is entered into between POWER3 MEDICAL PRODUCTS, INC. (hereinafter “Plaintiff”) and BIO-RAD LABORATORIES, INC. (hereinafter “Defendant”). Plaintiff and Defendant are collectively the “Parties” to this Agreement.

RECITALS

WHEREAS Plaintiff sued Defendant in a lawsuit styled Power3 Medical Products, Inc. v. Bio-Rad Laboratories, Inc., Cause No. 06-07-06818, In the 359th Judicial District Court of Montgomery County, Texas, (Hereinafter the “Lawsuit”); and

WHEREAS Defendant has not appeared, answered or filed a counterclaim in the Lawsuit; and

WHEREAS the Parties have mutually determined that it is in their best interest to resolve their claims and potential counterclaims in the manner set forth in this Agreement without incurring the expense, disruption and acrimony created by litigation; and

WHEREAS, the Parties have compromised and reached a full, final and complete settlement of all claims and potential counterclaims, whether asserted or not, relating to or arising from the causes of action in Plaintiffs’ Lawsuit; and

WHEREAS by this Agreement, the Parties desire to release each other from each and every claim, counterclaim, potential claim or potential counterclaim or other damage which has been or may be experienced in the future arising in any manner, directly or indirectly from the subject matter of the Lawsuit; and

WHEREAS the Parties agree this Agreement is a full and complete compromise and settlement of all disputed and contested matters between them and by entering into this Agreement or undertaking any performance or obligation under it, they do not admit to any liability or responsibility for any claim, counterclaim, act or omission alleged, or which might be or might have been alleged. Plaintiff and Defendant each seeks and hereby obtains peace, each for its own reasons; and

		
	 
	 

	Settlement Agreement and Release of All Claims

	Page 1 of 6

WHEREAS it is agreed between Plaintiff and Defendant, for the purposes of this Agreement, the terms “claim,” “counterclaim” or “potential counterclaim” means all theories of recovery of whatever nature, whether known or unknown, whether stated or unstated, now or in future recognized by the law or equity of any jurisdiction related to the relationship between the Parties. The term includes, but is not limited to, causes of action, charges, suits, expenses, judgments, indebtedness, losses, claims, liabilities, and demands, whether arising in equity or under any contract, guaranty or any other agreement, tort or any statute, state or federal, related to the subject matter of the Lawsuit; and

WHEREAS the Parties each represent and warrant that the above recitals are true and correct and are made a part hereof.

NOW THEREFORE, for and in consideration of the mutual promises, representations, and consideration set forth herein, the sufficiency of whish is hereby expressly acknowledged by the Parties, the undersigned compromise and agree as follows:

1.

Settlement Terms.

a.

Promptly upon execution of this Agreement by both Parties, Plaintiff will file the original of the Agreement with the clerk of the 359th Judicial District Court of Montgomery County, Texas.

b.

As soon thereafter as reasonably practicable, and at a time and date to be mutually agreed upon, ownership and possession of the FX Imager, Serial No. 443BR170 and its accessories Sample Tray (1707811), SCSI Card and Cable (1707611) and Quantity One Software (1708601) will be transferred from Plaintiff to Defendant at Plaintiff’s offices at 3400 Research Forest Drive, The Woodlands, Texas 77381.

c.

As soon thereafter as reasonably practicable, Plaintiff will file a Motion for Nonsuit with Prejudice in the 259th Judicial District Court of Montgomery County, Texas.

d.

Release.  In consideration of (1)(a)-(c) above, as well as other good consideration, the Parties shall RELEASE AND FOREVER DISCHARGE AND ACQUIT each other, their attorneys and all agents, affiliates, employees, clients, insurers, officers, directors, predecessors, successors, heirs, assignees, shareholders and representatives from any and all claims, demands, suits, costs, contracts, agreements, obligations, known or unknown, fixed or contingent, liquidated or unliquidated, whether or not asserted in the Lawsuit, arising from or relating to the claims, potential counterclaims, events, and transactions arising in any manner, directly or indirectly related to the subject matter of the Lawsuit; and

		
	 
	 

	Settlement Agreement and Release of All Claims

	Page 2 of 6

2.

Parties’ Representations and Warranties.  Each Party to this Agreement represents and warrants to the other Party (which representations and warranties shall survive the execution and delivery of this Agreement) the following:

a.

Each Party possesses ll capacities, including but not limited to, the legal capacity and authority to execute this Agreement;

b.

Other than the representations contained in this Agreement, neither Party has received or relied upon any oral or written representation of the other Party or and of the other Party’s employees, agents, partners, or representatives regarding any fact in executing this Agreement;

c.

Each Party has had ample opportunity to receive legal counsel with respect to this Agreement and each has reviewed with such legal counsel this Agreement, its contents and the advisability of making this Agreement;

d.

This Agreement represents the entire agreement between the Parties, and its supersedes all prior and contemporaneous oral and written agreements;

e.

Each Party is executing this Agreement of its own free will, absent duress or coercion by any other person, Party, or circumstance;

g.

Each Party represents and warrants to the other Party that it owns and has not assigned or otherwise transferred to any person, party, or entity any of the claims, counterclaims, potential claims or potential counterclaims being released hereby or any portion thereof;

h.

There is no impediment to the full and faithful observance of all terms of the Agreement; and

i.

The execution of this Agreement is only for the purpose of the settlement and compromise of doubtful, disputed claims, and the execution of or any action taken pursuant to this Agreement is not to be construed, considered, or used as an admission of liability or fault on the part of the persons or entities taking the action or being released in this Agreement.

4.

MUTUAL RELEASE.  FOR THE CONSIDERATION STATED HEREIN, PLAINTIFF AND DEFENDANT HEREBY AGREE TO FOREVER RELEASE AND DISCHARGE EACH OTHER, THEIR AGENTS, AFFILIATES, EMPLOYEES, CLIENTS, INSURERS, OFFICERS, DIRECTORS, SHAREHOLDERS, PARTNERS, PREDECESSORS, SUCCESSORS,HEIRS, ASSIGNEES, AND REPRESENTATIVES OF THE OTHER PARTY FROM ANY AND ALL CLAIMS, DEMANDS, SUITS, COSTS, CONTRACTS, AGREEMENTS, OR OBLIGATIONS, KNOWN OR UNKNOWN, FIXED OR CONTINGENT, LIQUIDATED OR UNLIQUIDATED, WHETHER OR NOT ASSERTED OR OTHERWISE MADE KNOWN TO THE OTHER

		
	 
	 

	Settlement Agreement and Release of All Claims

	Page 3 of 6

PARTY, ARISING FROM OR RELATING TO THE CLAIMS AND EVENTS WHICH ARE THE SUBJECT MATTER OF THE LAWSUIT OR THAT RELATE IN ANY MANNER WHATSOEVER TO THE SUBJECT MATTER OF THE LAWSUIT OR ANY CONDUCT OR ACTS TAKEN BY ANY AGENT, CLIENT, PARTNER, OR REPRESENTATIVE OF THE PARTIES FROM THE BEGINNING OF TIME THROUGH AND INCLUDING THE DATE OF EXECUTION OF THIS AGREEMENT.

5.

Entire Agreement.  This Agreement contains the entire understanding and agreement of the Parties concerning the compromise and settlement of the released claims, counterclaims, potential claims and potential counterclaims and is a final, complete, and exclusive statement of such agreement and the terms thereof. This Agreement supersedes prior understandings and agreements, if any, between the Parties. All prior or contemporaneous oral or written communications, conversations, negotiations, agreements, representations, promises, covenants, and warranties, if any, concerning the compromise and settlement of the released claims are merged into this Agreement and, if not expressly set forth herein, are forever waived and are void. This Agreement is an integrated written contract that may not be varied, altered, amended, modified, contradicted, or otherwise changed, exceptin a writing executed by both Parties.

6.

No Construction Against a Drafter.  Both Parties to this Agreement cooperated in the drafting and preparation of this Agreement. Therefore, any ambiguities in this Agreement, shall not be construed for or against either Party.

7.

Notice.  Any notice to be given under this Agreement shall be either delivered personally, mailed by postage prepaid Certified Mail, Return Receipt Requested, transmitted by facsimile or sent by daily delivery service. Such notices shall be deemed to be given on the date of personal delivery, the date the notice is deposited with the United States Postal Office, transmitted by facsimile or one business day after such notice is tendered to any such daily delivery service. Unless otherwise specified in writing all notices and other communications in writing shall be given to the respective parties as set forth below.

			
	                     If to Plaintiff:

	       If to Defendant:

	 
	 
	 

	                                     Richard P. Martini

	 
	General Counsel

	                                     Linda Thomas

	 
	Bio-Rad Laboratories, Inc.

	                                     Billings & Solomon, P.L.L.C.

	 
	1000 Alfred Nobel Dr.

	                                     2777 Allen Parkway

	 
	Hercules, CA 94547

	                                     Houston, Texas 77019

	 
	510-741-6005

	                                     713) 528-0980 — Facsimile

	 
	60000                                    

	 
	 
	519-741-5815 — Facsimile

		
	 
	 

	Settlement Agreement and Release of All Claims

	Page 4 of 6

8.

Descriptive Headings.  The descriptive headings of the several sections of this Agreement are inserted for reference purposes only and do not constitute part of this Agreement, nor are they intended in any way to affect the meaning or interpretation of the Agreement.

9.

Binding.  The Agreement shall be binding upon,and shall inure to the benefit of the Parties, and their respective heirs, executives, administrators, legal representatives, affiliates, agents, successors, and assigns.

10.

Severability.  In case any one or more of the provisions contained in this Agreement shall be invalid, illegal, or unenforceable in any respect, the validity, legality and enforceability of the remaining provisions contained herein shall not in any way be effected thereby. It is the intention of the parties that if any provision is held to be illegal, invalid, or unenforceable, there will be added in lieu thereof a provision as similar to such provision as possible to be legal, valid, and enforceable.

11.

Choice of Law and Venue.  This Agreement shall be interpreted and construed in accordance with and shall be governed by the laws of the State of Texas. The venue over any dispute concerning the Agreement shall be proper in Montgomery County, Texas, and the parties hereby agree that any dispute concerning the Agreement shall be brought in the District Court for Montgomery County, Texas. This Agreement shall be fully performed in Montgomery County, Texas.

IN WITNESS WHEREOF, the undersigned parties have executed or caused to be executed this Agreement on the date indicated.

					
	PLAINTIFF:

	 
	DEFENDANT                                      

	 
	 
	 

	POWER3 MEDICAL PRODUCTS, INC.

	 
	BIO-RAD LABORATORIES, INC.

	a Nevada Corporation

	 
	a Delaware Corporation

	 
	 
	 

	 
	 
	 

	 
	 
	 

	By:

	/s/ Steven B. Rash

	 
	By:

	/s/ Sanford Wadler

	 
	Steven B. Rash

	 
	 
	Name: Sanford Wadler

	 
	Title: C.E.O.

	 
	 
	Title: Vice President and

	 
	Date: 10/24/07

	 
	 
	General Counsel

	 
	 
	 
	Date: 10/24/07

		
	 
	 

	Settlement Agreement and Release of All Claims

	Page 5 of 6

			
	STATE OF TEXAS

	   

	§

	 
	 
	§

	COUNTY OF MONTGOMERY

	 
	§

BEFORE ME, the undersigned authority, on this 24th day of October, 2007 personally appeared Steven B. Rash, known to me to be the C.E.O. of Power3 Medical Products, Inc. and who acknowledged to me that he/she executed the foregoing Agreement for the purposes stated therein.

			
	 
	[SEAL]

	CLARISSA DIAZ

	 
	NOTARY PUBLIC, STATE OF TEXAS

	/s/ Clarissa Diaz

	MY COMMISSION EXPIRES

	Notary Public

	FEB. 25, 2010

	                                             

	                    

	                                                                                     

	 
	 
	 

	My Commission expires:                        

	 

		
	 
	 

	Settlement Agreement and Release of All Claims

	Page 6 of 6

California All-Purpose Acknowledgment

State of California

                                                       SS.

County of Contra Costa

On November 1, 2007 before me, Cindy Barlow, Notary Public personally appeared Sanford S. Wadler,

ý

personally known to me — OR —

 ̈

proved to me on the basis of satisfactory evidence

to be the person whose name is subscribed to the within instrument and acknowledged to me that he executed the same in his authorized capacity, and that by his signature on the instrument the person, or the entity upon behalf of which the person acted, executed the instrument.  

				
	[SEAL]

	CINDY BARLOW

Commission # 1547367

Notary Public – California

Contra Costa County

My Comm. Expires Feb. 23, 2009

	 
	WITNESS my hand and official seal.

	 
	 

	 
	 

	 
	/s/ Cindy Barlow

	 
	Signature of Notary Public

			
	 
	OPTIONAL

	 

Though the information below is not required by law, it may prove valuable to persons relying on the 

document and could prevent fraudulent removal and reattachment of this form to another document: 

Description of Attached Document

Title of Type of Document: Settlement Agreement and Release of All Claims

Document Date: October 24, 2007

     

Number of Pages: 6

Signer(s) Other Than Named Above:                                                                                    

Capacity(ies) Claimed by Signer(s):

Signer(s) Name: Sanford S. Wadler

 ̈

Individual

 ̈

Corporate Officer Title(s): Vice President and General Counsel

 ̈

Partner -  ̈  Limited      ̈  General

 ̈

Attorney-in-Fact

 ̈

Trustee

 ̈

Guardian or Conservator

 ̈

Other:                                                                                          

Signor Is Representing: Bio-Rad Laboratories, Inc.United States Securities and Exchange Commission EDGAR Filing

EXHIBIT 10.12

POWER3 MEDICAL PRODUCTS, INC.

STATEMENT OF COMPANY POLICY

REGARDING CONFIDENTIALITY AND SECURITIES

TRADES BY COMPANY PERSONNEL

1.

CONFIDENTIALITY OF INSIDE INFORMATION

1.1

Directors, officers, employees and consultants (“Company Personnel”) of Power3 Medical Products, Inc. (the “Company”), who come into possession of material non-public information concerning the Company must safeguard the information and not intentionally or inadvertently communicate it to any person (including family members and friends) unless the person has a need to know the information for legitimate, Company-related reasons. This duty of confidentiality is important both as to the Company’s competitive position and with respect to the securities laws applicable to the Company as a public company.

1.2

Consistent with the foregoing, all Company Personnel should be discreet with inside information and not discuss it in public places where it can be overheard such as elevators, restaurants, taxis and airplanes. Such information should be divulged only to persons having a need to know it in order to carry out their job responsibilities. To avoid even the appearance of impropriety, Company Personnel should refrain from providing advice or making recommendations regarding the purchase or sale of the Company’s securities.

2.

TRADING ON INSIDE INFORMATION

2.1

Prohibition of Insider Trading

If a director, officer, employee or consultant has material non-public information relating to the Company, it is our policy that neither that person nor any related person may buy or sell securities of the Company or engage in any other action to take advantage of, or pass on to others, that information. This policy also applies to information relating to any other company, including our customers or suppliers, obtained in the course of employment.

Transactions that may be necessary or justifiable for independent reasons (such as the need to raise money for an emergency expenditure) are no exception. Even the appearance of an improper transaction must be avoided to preserve our reputation for adhering to the highest standards of conduct.

Twenty-Twenty Hindsight.   If your securities transactions become the subject of scrutiny, they will be viewed after-the-fact with the benefit of hindsight. As a result, before engaging in any transaction you should carefully consider how regulators and others might view your transaction in hindsight.

1

Transactions By Family Members.   The very same restrictions that apply to you also apply to your immediate family members and others living in your household. Employees are expected to be responsible for the compliance of their immediate family and personal household.

Tipping Information to Others.   Whether the information is proprietary information about our Company or information that could have an impact on our stock price, Company Personnel must not pass the information on to others. Insider trading penalties apply to a tipper, whether or not such individual derives any benefit from another’s actions.

2.2

Definition of Material Non-Public Information

Definition.   Material non-public information is any information which has not been publicly disseminated that a reasonable investor would consider important in a decision to buy, hold or sell stock. In short, material non-public information is any information which, if publicly disclosed, could reasonably affect the price of the stock.

Examples.   Common examples of information that will frequently be regarded as material are: projections of future earnings or losses; current financial performance; news of a pending or proposed merger, acquisition or tender offer; news of a significant sale of assets or the disposition of a subsidiary; significant product development; changes in divided policies or the declaration of a stock split or the offering of additional securities; changes in management; significant new products; impending bankruptcy or financial liquidity problems; and the gain or loss of a substantial customer or supplier. Either positive or negative information may be material.

2.3

The Consequences of Violations

The consequences of insider trading violations can be staggering.

For individuals who trade on inside information (or tip information to others):

-

A civil penalty of up to three times the profit gained or loss avoided;

-

A criminal fine (no matter how small the profit) of up to $5 million; and

-

A jail term of up to twenty years.

For a company (as well as possibly any supervisory person) that fails to take appropriate steps to prevent illegal trading:

-

A civil penalty not exceeding the greater of $1 million or three times the amount of the profit gained or loss avoided as a result of a violation; and

-

A criminal penalty of up to $25 million.

2

Moreover, if an employee violates the Company’s insider trading policy, Company imposed sanctions, including dismissal for cause, could result from failing to comply with the Company’s policy or procedures. Needless to say, any of the above consequences, even an SEC investigation that does not result in prosecution, can tarnish one’s reputation and irreparably damage a career.

2.4

When Information Is Public

It is also improper for an officer, director, employee or consultant to enter a trade immediately after the Company has made a public announcement of material information, including earnings releases. Because the Company’s stockholders and the investigating public should be afforded the time to receive the information and act upon it, as a general guide such an individual should not engage in any transactions until the third business day after the information has been publicly released.

2.5

Additional Prohibited Transactions

Because the Company believes it is improper and inappropriate for any Company Personnel to engage in short-term or speculative transactions involving Company stock, it is the Company’s policy that Company Personnel should not engage in any of the following activities with respect to securities of the Company:

(1)

Trading in securities on a short-term basis. Any Company stock purchased in the open market must be held for a minimum of six months and ideally longer. (Note that the SEC’s short-swing profit rule already prevents certain officers and directors from selling any Company stock within six months of a purchase. We are simply expanding this rule to all employees.)

(2)

Purchase of Company stock on margin.

(3)

Short sales.

2.6

Company Assistance

Any person who has any questions about specific transactions may obtain additional guidance from the Principal Accounting Officer’s office. However, the ultimate responsibility for adhering to the Policy Statement and avoiding improper transactions rests with the individual.

2.7

Pre-Clearance Of All Trades By Directors, Officers, And Other Key Personnel; Blackout Period

To provide assistance in preventing inadvertent violations and avoiding even the appearance of an improper transaction (which could result, for example, where an officer engages in a trade while unaware of a pending major development), the Company is implementing the following procedures and restrictions:

3

(1)

All transactions in Company securities (acquisitions, dispositions, transfers, etc.) by directors, officers, managers and all accounting and administrative personnel, must be pre-cleared by the office of the Principal Accounting Officer. The subject individuals should contact the Principal Accounting Officer in advance. This requirement does not apply to stock option exercises, but would cover market sales of option stock.

(2)

Such persons are required not to make trades in Company securities in the period commencing 15 days prior to the end of each quarter and ending on the third business day after results for the quarter are publicly released (the “Blackout Period”). The Company may notify such persons of other Blackout Periods when necessary.

2.8

Certifications

Employees will be required to certify their understanding of and intent to comply with this Policy Statement. Officers, directors and other key employees may be required to certify compliance on an annual basis. 

2.9

Prohibitions of Officers Directors and 5% Stockholders

Officers Directors and holders of 5% or more of the Company’s securities (“Insiders”) have a special fiduciary responsibility to other holders of the Company’s securities who cannot exert influence over the day to day operations of the Company.  Therefore, persons or entities that fall within one of these categories should refrain from certain activity and adhere to certain procedures so as to avoid any appearance of impropriety. Specifically:

(1) 

Insiders must not accept remuneration or other consideration from third parties for activities and accomplishments done or achieved for the benefit of the Company.  In other words, Insiders cannot enrich themselves at the expense of the Company or receive “kickbacks” from third parties for activities undertaken for the benefit of the Company.

(2) 

In an instance where an Insider enters into a transaction with the Company (i.e., if the Insider owns property that the Company leases or lends or borrows money from the Company) such transaction must be made on commercially reasonable terms and must be approved by a majority of the disinterested board of directors.

(3) 

If an insider is to receive special compensation from the Company for a particular accomplishment, such compensation must first be approved by the compensation committee who must immediately inform the full board of directors of the terms.  The disinterested board members must ratify any such special compensation package.

4

RECEIPT/ACKNOWLEDGMENT

I acknowledge that I have received a copy of the Statement of Company Policy Regarding Confidentiality and Securities Trades by Company Personnel and have read or had it read to me.  If I have any questions regarding this policy, I understand that it is my responsibility to ask my supervisor or other member of management about them.  I agree to comply with these and any other Company policies regarding confidentiality and securities trades by company personnel, as those policies might be promulgated and amended from time to time.

			
	 
	 
	 

	Date

	                    

	Employee Signature

	 
	 
	 

	 
	 
	 

	 
	 
	 

	 
	 
	 

	 
	 
	 

	 
	 
	 

	 
	 
	Employee Name Printed

	 
	 
	 

	 
	 
	 

Note to Supervisor: Following the employee’s signature, place this page in the employees personnel file.

5

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00132-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00132-of-00352.parquet"}]]