Document:

ex10_1.htm

     

                                                                                        EXHIBIT
10.1

    JOINT
DEVELOPMENT AND EXCLUSIVE OPTION AGREEMENT

    

    This
Joint Development and Exclusive Option Agreement (“Agreement”),
effective as of the date signed by both parties (“Effective Date”), is
entered into by and between

    

    AVERY DENNISON CORPORATION, a
Delaware corporation having an address and contact person at 150 North Orange
Grove Boulevard, Pasadena, California (“Avery”)
and

    

    QUICK-MED TECHNOLOGIES, INC.,
a Nevada corporation having an address and contact person at 902 NW
Fourth Street, Gainesville, Florida 32601 (Attention: Gerald Olderman, Vice
President) (“Quick-Med”).

    

    Avery and
Quick-Med are sometimes referred to herein individually as a “Party” and
collectively as the “Parties.”

    
 

    RECITALS

    

    WHEREAS,
Avery and Quick-Med are interested in applying NIMBUS® and
related Quick-Med antimicrobial technologies to adhesives for medical and other
applications, Quick-Med and Avery desire to collaborate on such technology
developments and applications, and if the contemplated technology developments
and applications are successful, Quick-Med will enter into an exclusive license
with Avery for NIMBUS® and
related Quick-Med antimicrobial technologies for use in applications and
products arising from the activities contemplated by this
Agreement;

     

    Now,
therefore, in consideration of the mutual promises contained herein, the
Parties, intending to be legally bound, agree as follows:

    

    1.     DEFINITIONS

    

    
      	
               
      

            	
              1.1

            	
              “Quick-Med
      Antimicrobial Technology” shall mean technology utilizing advanced
      antimicrobial polymeric materials supplied by Quick-Med as NIMBUS®
      (Novel Intrinsically MicroBonded Utility Substrate), NimbuSorbTM, and/or
      NimbuDermTM.

            

    

    
 

    
      	
               
      

            	
              1.2

            	
              “Avery Adhesive
      Technology” shall mean the technology embodied in adhesives
      developed, manufactured and/or sold by Avery or its affiliates or
      subsidiaries.

            

    

    

    
      	
               
      

            	
              1.3

            	
              “Confidential
      Information” shall mean information transmitted by either Party
      relating to compounds, products, formulations, specifications,
      manufacturing processes, uses, technical, testing, commercial, economic or
      business affairs, patent applications, know-how of Quick-Med or Avery, or
      other information that the disclosing party considers confidential, either
      in written form including electronic form and marked ‘CONFIDENTIAL’ or if
      disclosed orally or visually then reduced to writing within thirty (30)
      days after oral or visual disclosure and similarly
  marked.

            

    

    

    
      	
               
      

            	
              1.4

            	
              Field” shall
      mean the application of Quick-Med Antimicrobial Technology to Avery
      Adhesive Technology for the purpose of controlling bacteria in (a) medical devices and other health care
      applications utilizing ***** of adhesive, and (b) any non-medical device
      or non-health care application utilizing *****
      adhesives.

            

    

    

    
      	
               
      

            	
              1.5

            	
              “Option” shall mean the right stated in Section.
      3.1.

            

    

    

    
      	 	1.6	 “Option
      Period” shall mean the time that the Option may be exercised by an
      “Option
      Notice” as stated in Section. 4.1 and shall expire on the date that
      is ***** after the last day of the
Term.

    

     

    
      	
               
      

            	
              1.7

            	
              “Term” shall
      mean the life of this Agreement, which shall commence on the Effective
      Date and remain in effect for six months, unless earlier terminated or
      otherwise extended in accordance with the provisions of this
      Agreement.

            

    

    

    
      	
               
      

            	
              1.8

            	
              “Territory”
      shall mean Worldwide.

            

    

    

    
      	
               
      

            	
              1.9

            	
              With
      respect to each Party, “People” shall
      mean its directors, officers, employees, consultants, advisors, and
      agents.

            

    

    

    
      	
               
      

            	
              1.10

            	
              “MRSA” shall
      mean Methicillin-resistant Staphylococcus
      aureus

            

    

    

    
      	
               
      

            	
              1.11

            	
              “VRE” shall mean
      Vancomycin-resistant Enterococcus

            

    

    

    
      	
               
      

            	
              1.12

            	
              “MVTR” shall
      mean Moisture Vapor Transmission
Rate.

            

    

    

    
      	
               
      

            	
              1.13

            	
              “Joint Development
      Phase” shall mean the shorter of the Term, as defined in Section.
      1.6 or the completion of Joint Development Program stated in Section.
      2.3.

            

    

    

    
      	
               
      

            	
              1.14

            	
              “Commercialization
      Phase” shall mean the term of the License Agreement provided for in
      Section 4.2, starting on the effective date
  thereof.

            

    

    

    
      	
               
      

            	
              1.15

            	
              “Milestone Satisfaction
      Notice” shall mean any of the notices provided for in Section
      2.2(b)(2).

            

    

    

    
      	
               
      

            	
              1.16

            	
              “Joint Development
      Program” shall mean the program provided for in Section
      2.1.

            

    

     

     

    
      ***** This material has been omitted pursuant
to a request for confidential treatment and filed separately with the Securities
and Exchange Commission.

    

    
      
        
        

      

      
        -1-

        
          

        

      

      
        
        

      

    

     

    
      	
               
      

            	
              1.17

            	
              “License Agreement Term
      Sheet” shall mean Exhibit A
herein.

            

    

    

    
      	
               
      

            	
              1.18

            	
              “Existing Intellectual
      Property” shall have the meaning set forth in Section
      6.1.

            

    

    

    
      	
               
      

            	
              1.19

            	
              “Quick-Med Owned
      Intellectual Property” shall have the meaning set forth in Section
      6.2.

            

    

    

    
      	
               
      

            	
              1.20

            	
              “Avery Owned
      Intellectual Property” shall have the meaning set forth in Section
      6.3.

            

    

    

    

    
      	
              2.

            	
              DEVELOPMENT
      AND FUNDING OF DEVELOPMENT COSTS

            

    

    

    
      	
              2.1

            	
              Joint Development
      Activities.  Subject to the terms and conditions of this
      Agreement, Quick-Med and Avery will use commercially reasonable efforts
      during the Term to develop Quick-Med Antimicrobial Technology for use in
      the Field (the “Joint Development
      Program”).  The Parties will reasonably cooperate on such
      development.  During the Term, Avery will conduct one or more
      evaluations of adhesives treated with Quick-Med Antimicrobial Technology,
      and Quick-Med will provide basic microbiology analysis to determine the
      effectiveness of antimicrobial activity imparted
  thereto.

            

    

    

    
      	
              2.2

            	
              Milestones.

            

    

     

    
      	
              (a)

            	
              Milestone Objectives
      to be Completed.  In order to complete the Joint
      Development Program, the parties have agreed to collaborate and work
      together to satisfy each of the milestone objectives set forth in Section
      2.2(d) below.

            

    

     

    
      	
               
      

            	
              (b)

            	
              Satisfaction of
      Milestone Objectives.

            

    

     

    
      	
               
      

            	
              (i)

            	
              Satisfaction
      of each of the milestone objectives shall be based upon successful
      completion of each of the criteria related to such milestone
      objective.

            

    

     

    
      	
               
      

            	
              (ii)

            	
              At
      the point when Quick-Med believes all of the criteria related to a
      particular milestone objective have been completed, Quick-Med shall
      deliver written notice of such satisfaction to Avery (each, a “Milestone Satisfaction
      Notice”).

            

    

     

    
      	
               
      

            	
              (iii)

            	
              Upon
      receiving such Milestone Satisfaction Notice, Avery shall review the
      milestone objective at issue along with all criteria related thereto and
      shall determine whether such milestone objective and all criteria related
      thereto have been adequately
satisfied.

            

    

     

    
      	
               
      

            	
              (iv)

            	
                In
      the event that Avery is not reasonably satisfied that all criteria and/or
      the milestone objective have been adequately satisfied, it shall provide
      feedback to Quick-Med of issues necessary to be resolved prior to it being
      satisfied.

            

    

     

    
      	
               
      

            	
              (v)

            	
              Upon
      satisfaction of such milestone objective and all criteria related thereto,
      Avery shall deliver written confirmation of its approval of the completion
      of such milestone objective, which shall not be unreasonably
      withheld.

            

    

     

    
      	
               
      

            	
              (c)

            	
              Payment of Milestone
      Satisfaction Amounts.  Within seven (7) days of delivery
      by Avery of such written confirmation regarding the completion of a
      milestone objective, Avery shall pay to Quick-Med the amount set forth in
      the “Payment” column in Section 2.2(d) related to such milestone
      objective.

            

    

     

    
      	
               
      

            	
              (d)

            	
              Milestone Objectives
      and Payment Schedule.

            

    

     

    
      	
              Milestone

            	
              Payment

            	
               

              Target

               

            
	
              Execution
      of Joint Development Agreement by Avery and Quick-Med

               

            	
                      $30,000

            	
                  April
      15, 2009

            
	
              Review
      and evaluation of intellectual property related to Quick Med Antimicrobial
      Technology by Avery and Avery’s approval of such intellectual property to
      be determined within 90 days of the Effective Date.

               

              *****
      log kill for MRSA and VRE after ***** minutes contact with Quick-Med
      adhesive

               

            	
                      $30,000

            	
                  July
      15, 2009

            
	
              *****
      log kill for MRSA and VRE after ***** hours contact with Quick-Med
      adhesive

               

            	
                      $40,000

            	
                  October
      15, 2009

            

    

    

    
    

    ***** This material has been omitted pursuant
to a request for confidential treatment and filed separately with the Securities
and Exchange Commission.

     

    
      
         

      

      
        -2-

        
          

        

      

      
         

      

    

    2.3           Specifications.  The
Joint Development Program shall be deemed to be completed upon delivery of
written notice by Avery to Quick-Med that the milestones set forth in Section
2.2(d) and the Specifications set forth below have been achieved by the
Parties

    

    
      	
              Concentration

            	
               no
      more than ***** in the adhesive

            
	
              Antimicrobial
      Efficacy:

            	
                ●*****
      to ***** antimicrobial active in adhesive

                ●
      ***** log kill after ***** minutes for MRSA, VRE following
      ASTM 2180

                ●***** log
      kill after ***** hours for MRSA, VRE following ASTM
2180

            
	
              Safety:

            	
                ●ISO10993  cytotoxicity

                ●ISO10993  sensitization

                ●ISO10993
      irritation

            
	
              Product
      Properties:

            	
               
      ●Product must
      *****

                ●Adhesion on
      skin after ***** hours measured at ***** must be at a minimum of ******
      following Avery Dennison test method *****.

                
      ●MVTR
      must be above ***** measured using
*****

            

    

    
    

    
    

     

    
      In the
event that the milestones set forth in Section 2.2(d) and the Specifications set
forth above are not achieved prior to the expiration of the Term of this
Agreement, the Term of this Agreement shall be extended until the shorter of (i)
an additional six (6) month period of time or (ii) until such Specifications
have been satisfied.

    

    
 

    
      	
              2.4

            	
              Contribution of the
      Parties.

            

    

    

    
      	
               
      

            	
              (a)

            	
              Avery
      Participation.  Avery has expertise, facilities and
      research and production personnel which it is prepared to use in the Joint
      Development Program. Avery shall bring its knowledge, ideas and concepts
      concerning the Joint Development Program and its development
      objectives.  Avery will provide adhesive expertise and base
      adhesive materials as required to continue development from previous proof
      of principle as reviewed in May 7, 2008, status
  report.

            

    

    

    
      	
               
      

            	
              (b)

            	
              Quick-Med
      Participation.  Quick-Med has expertise, facilities and
      research  personnel which it is prepared to use in the Joint
      Development Program.  Quick-Med shall bring its knowledge, ideas
      and concepts concerning the Joint Development Program and its development
      objectives.  Quick-Med will provide microbiological expertise
      and anti-microbial polymeric materials in the form of NIMBUS®
      (Novel Intrinsically MicroBonded Utility Substrate), NimbuSorbTM,
      NimbuDermTM and the like.

            

    

    

    
      	
               
      

            	
              (c)

            	
              Facilities, Equipment
      and Materials.  Nothing in this Agreement shall be
      construed to require either Party to contribute to the purchase of any
      facilities, equipment or materials by the other Party in connection with
      the Joint Development Program.  Any such commitment shall be the
      subject of a separate agreement.

            

    

    

    
      	
              2.5

            	
              Consulting
      Work.

            

    

    

    
      	
               
      

            	
              (a)

            	
              Joint Development
      Phase.  Whenever during the Joint Development Phase,
      either Party obtains consulting work from the other Party in connection
      with the development of the Quick-Med Antimicrobial Technology for use in
      the Field, each Party shall bear its own costs for its
      consulting time and any associated out-of-pocket expenses, unless
      previously agreed in
writing.

            

    

    

    
      	
               
      

            	
              (b)

            	
              Commercialization
      Phase.  To the extent that during the Commercialization
      Phase, Avery requires consulting work from Quick-Med for other work due to
      requests made by Avery (and accepted by Quick-Med), then the rate for such
      work shall be at $2,000 per day per person or fraction thereof at $250 per
      hour.  In addition, the reasonable out-of-pocket expenses for
      food, lodging, travel, and consumables incurred and for third party
      expenses (including, without limitation, independent third party
      consultants and laboratory expenses) incurred by Quick-Med will be
      separately billed as incurred and paid by Avery, subject to Avery’s
      approval of the expenses before they are incurred and the submission to
      Avery of evidence of such out-of-pocket expenses in form and substance
      reasonably satisfactory to Avery.  All invoices shall be paid
      within thirty (30) days of the date
thereof.

            

    

    

    
      	
              2.6

            	
              Project
      Management.

            

    

    

    
      	
               
      

            	
              (a)

            	
              Project
      Leaders.  Each of the parties agrees to appoint and keep
      in place during the term of this Agreement a Project Leader who will
      allocate such portion of his or her working time as may be reasonably
      necessary to facilitate the performance, on a timely basis and in
      accordance with any particular project plan, of such party's obligations
      under this Agreement or any particular project plan, design or development
      specification or other document contemplated hereby.  In
      addition, the Project Leader will: (i) be the central point of contact for
      all matters arising under this Agreement; (ii) oversee project management
      and the resource allocations hereunder; and (iii) have overall
      responsibility for the facilitation of the performance of the obligations
      of the parties contemplated hereby.  The Project Leaders for
      each respective party shall be the following individuals or their
      respective designated successors; provided, however, that it is the intent
      of the parties that the Project Leaders named below shall remain assigned
      to the alliance for the entire term of this
  Agreement:

            

    

     

    Avery:                      Dr. Bart De Dier

     

    Quick-Med:     Dr. Jerry
Olderman

    
 

    
      	
               
      

            	
              (b)

            	
              Meetings.  The
      Project Leaders agree to meet by phone or in person at least quarterly to
      review the overall progress of the projects contemplated hereunder and to
      provide overall supervision and oversight.  Such meetings shall
      be held at locations as the parties shall
  determine.

            

    

     

    

    
      	
              2.6.1

            	
              Reports.  During
      the Term, Quick-Med will send monthly reports to Avery of its activities
      hereunder and provide weekly updates by telephone
  call.

            

    

     

    
       

      *****
This material has been omitted pursuant to a request for confidential treatment
and filed separately with the Securities and Exchange Commission.

       

      
        
           

        

        
          -3-

          
            

          

        

        
           

        

      

    

    

    
      	
              3.

            	
              GRANT
      OF OPTION

            

    

    

    
      	
              3.1

            	
              Quick-Med
      hereby grants to Avery and its affiliates and subsidiaries an exclusive
      option (the “Option”) during
      the Option Period to enter into a License Agreement that includes the
      essence of the terms stated in the Term Sheet set forth on Exhibit A
      herein (the “License Agreement Term
      Sheet”).

            

    

     

    
      	
              3.2

            	
              During
      the Term and Option Period, Quick-Med shall not, and shall not authorize
      or permit any of its affiliates or subsidiaries, or its or their
      respective officers, directors, employees, advisors,
      representatives

            

    

    
      	
               
      

            	
              or
      agents, directly or indirectly, to solicit, initiate, seek, discuss,
      encourage (including by way of furnishing information or assistance), or
      enter into any discussions, negotiations or agreement with a third party
      granting to such third party a license or other right in the Territory to
      use the Quick-Med Antimicrobial Technology to make, sell, offer or import
      products in the Field.

            

    

     

    
      	
              4.

            	
              EXERCISE OF
      OPTION

            

    

     

    
      	
              4.1

            	
              Avery
      may exercise the Option by sending Quick-Med written notice (the “Option Notice”)
      of such exercise any time between the date of execution of this Agreement
      and the expiration of the Option
Period.

            

    

     

    
      	
              4.2

            	
              Upon
      Quick-Med’s receipt of the Option Notice, the parties, acting reasonably
      and in good faith, shall develop and execute a License Agreement *****
      that includes the essence of the terms stated in the License Agreement Term Sheet. The License Agreement shall be
      dated with the date of the Option Notice. Upon execution and delivery of
      signed originals of the License Agreement to each other, the License
      Agreement shall thereupon become retroactively
  effective.

            

    

    

    
      	
              4.3

            	
              If
      Avery fails to exercise the Option prior to the expiration of the Option
      Period, this Agreement and all rights granted hereunder (not including any
      rights related to any intellectual property), including without limitation
      the Option, shall immediately terminate and neither Party shall have any
      further obligation to the other except to the extent such obligation was
      incurred prior to the effective date of such
  termination.

            

    

    

    
    

    5.  CONFIDENTIALITY

    

    
      	
              5.1

            	
              Each
      Party acknowledges that, in furtherance of this Agreement, it may wish to
      disclose to the other Party certain “Confidential Information,” namely
      business, technical or other information that the disclosing Party
      considers confidential.

            

    

    

    
      	
              5.2

            	
              Each
      Party shall maintain in confidence any and all Confidential Information of
      the other Party.  Each Party further agrees that it shall not
      use or disclose to any third party, for any purpose not authorized under
      this Agreement, any Confidential Information, except that either party may
      disclose Confidential Information under a similar obligation of
      confidentiality and non-use on a need-to-know basis to its
      People.  Each Party agrees and warrants that it shall inform
      each of its People having access to any Confidential Information of the
      other Party of its obligations of confidentiality
    hereunder.

            

    

    

    
      	
              5.3

            	
              Upon
      termination of this Agreement (unless the Option is exercised and/or a
      License Agreement becomes effective), each Party
  shall:

            

    

    

    
      	
               
      

            	
              (a)

            	
              return
      to the other Party Confidential Information received from the other in
      tangible form, and

            

    

    

    
      	
               
      

            	
              (b)

            	
              certify
      to the other Party that is has, to the fullest extent reasonably
      practicable, expunged from any computers and other electronic storage
      devices in its custody or control any Confidential Information of the
      other Party.

            

    

    

    
      	
              5.4

            	
              Each
      Party shall be relieved of its obligations under Sections 5.1 – 5.3 with
      respect to any Confidential Information
which:

            

    

    

    
      	
               
      

            	
              (a)

            	
              was
      already known to the receiving Party as
      demonstrated by the receiving Party, other than under an obligation
      of confidentiality, at the time of disclosure by the other
      Party;

            

    

    

    
      	
               
      

            	
              (b)

            	
              was
      generally available or known to the public at the time of its disclosure
      to the receiving Party as demonstrated by
      the receiving Party;

            

    

    

    
      	
               
      

            	
              (c)

            	
              became
      generally available or known to the public after its disclosure through no
      fault attributable to the receiving Party as
      demonstrated by the receiving Party;
or

            

    

    

    
      	
               
      

            	
              (d)

            	
              was
      disclosed to the receiving Party by a third party who had no obligation to
      the disclosing Party or another party not to disclose such information to
      others as demonstrated by the receiving
      Party; or

            

    

    

    
      	
               
      

            	
              (e)

            	
              was
      independently discovered or developed by the receiving Party without the
      use of Confidential Information belonging to the disclosing Party as demonstrated by the receiving
      Party.

            

    

    

    
      	
              5.6

            	
              In
      addition to the foregoing, nothing in this Agreement shall restrict either
      Party from disclosing Confidential Information pursuant to an order issued
      by a court or administrative agency of competent jurisdiction, or other
      valid and binding court-ordered discovery, or if specifically obligated to
      make such disclosure under any law, regulation or rule (including without
      limitation under any applicable securities laws), in the reasonable
      opinion of its legal counsel, but only to the extent so ordered or
      required, provided, however, that the Party so ordered or required shall
      notify the other Party, in writing, of such action, legal requirement or
      order soon enough to permit adequate time for response by the affected
      Party, if available.  The receiving Party shall provide all
      reasonable assistance, at the disclosing Party’s expense and direction, in
      opposing such disclosure order.

            

    

    

    
      	
              5.7

            	
              Notwithstanding
      the foregoing, this Agreement and the contents hereof may be disclosed by
      either Party to its actual or potential investors and their
      representatives in a private financing transaction, or to actual or
      potential acquirers or targets and their representatives in an acquisition
      transaction; provided that such investors, acquirers or targets and their
      representatives agree to keep the Confidential Information confidential
      and not use it for any purpose not authorized under this
      Agreement.

            

    

    

    
      	
              5.8

            	
              All
      disclosures hereunder shall be completed not later than the Term of the
      Agreement.  All obligations of confidentiality and non-use
      created by this Agreement shall survive the termination or expiration of
      this Agreement and shall expire five (5) years following the Effective
      Date.

            

    

    

    
      	
              5.9

            	
              Avery
      and Quick-Med have entered into a joint research agreement as defined in
      35 U.S.C. § 103(c)(3) and which satisfies the requirements of The
      Cooperative Research and Technology Enhancement (CREATE) Act of
      2004.  Should a Party at any time intend to seek a benefit under
      the CREATE Act with regard to any U.S. patent application in its control
      and filed under this Agreement, then that Party shall so notify the other
      Party and give the other Party an opportunity to negotiate in good faith
      the terms of such an action.  Each Party recognizes that
      obtaining a benefit under the CREATE Act would involve disclosing to the
      United States Patent and Trademark Office (“USPTO”) certain of the other
      Party’s otherwise confidential information, which may become a matter of
      public record, and that filing by one Party of a disclaimer pursuant to
      the CREATE Act with respect to a patent owned by the other Party could
      limit the other Party’s right to enforce its patent
      independently.

            

    

     

    
      ***** This material has been omitted pursuant
to a request for confidential treatment and filed separately with the Securities
and Exchange Commission.

       

      
        
           

        

        
          -4-

          
            

          

        

        
           

        

      

    

    

    6.           INTELLECTUAL
PROPERTY

    

    
      	
              6.1

            	
              Existing Intellectual
      Property.  All intellectual property (whether or not
      patentable) owned by either party as of the Effective Date including,
      without limitation, ideas, concepts, know-how, trade secrets,
      inventions,

            

    

    
      	
               
      

            	
              discoveries,
      processes, methods, compositions, formulae, information, data,
      developments and improvements, patent applications, patents, copyrights
      and designs (“Existing Intellectual
      Property”) shall remain the property of that
  party.

            

    

    

    
      	
              6.2

            	
              Quick-Med
      Ownership.  Quick-Med shall retain sole and exclusive
      ownership of all Quick-Med Antimicrobial Technology, as well as any
      improvements or modifications thereto related to antimicrobial
      functionality developed during the Joint Development Program (“Quick-Med Owned
      Intellectual Property”). For the avoidance of doubt, Quick-Med
      Owned Intellectual Property shall not include any intellectual property
      related to the formulation, production or use of adhesives that may be
      developed during the Joint Development Program, including but not limited
      to Avery Adhesive Technology.

            

    

    

    
      	
              6.3

            	
              Avery
      Ownership.  Avery shall retain sole and exclusive
      ownership of all Avery Adhesive Technology, as well as any improvements or
      modifications thereto related to the formulation, production or use of
      adhesives developed during the Joint Development Program (“Avery Owned
      Intellectual Property”). For the avoidance of doubt, Avery Owned
      Intellectual Property shall not include any intellectual property related
      to antimicrobial functionality that may be developed during the Joint
      Development Program, including but not limited to Quick-Med Antimicrobial
      Technology.

            

    

    

    
      	
              6.4

            	
              Except as specifically set forth in this
      Agreement, nothing herein shall be
      construed to grant one party any licenses, expressed or implied, or any
      other rights in the Quick-Med Antimicrobial Technology or Avery Adhesive
      Technology to the other party, or any other technology or information of
      either party, other than the right of Option stated in Section. 3.1 of
      this Agreement

            

    

    

    
      	
              6.5

            	
              Patent Filing for
      Avery Owned Intellectual Property.  The filing,
      prosecution and payment for patent applications covering Avery Owned
      Intellectual Property developed under this Agreement shall be solely
      within the discretion of Avery.  However, Avery shall submit
      each such patent application to Quick-Med for review and approval before
      it is filed to ensure that Quick-Med’s Confidential Information is not
      being disclosed without permission.  If Quick-Med reasonably
      determines that such application discloses its Confidential Information
      (or other information from which its Confidential Information may be
      inferred or deduced) to the prejudice of Quick-Med’s future patent filings
      or trade secrets, it shall within thirty (30) days of its receipt of the
      proposed patent application notify Avery in writing of its objections to
      such disclosure. The parties shall thereafter work together to ensure that
      such patent application is rewritten so as adequately to protect the
      interests of both parties.

            

    

    

    
      	
              6.6

            	
              Patent Filing for
      Quick-Med Owned Intellectual Property.  The filing,
      prosecution and payment for patent applications covering Quick-Med Owned
      Intellectual Property developed under this Agreement shall be solely
      within the discretion of Quick-Med.  However, Quick-Med shall
      submit each such patent application to Avery for review and approval
      before it is filed to ensure that Avery’s Confidential Information is not
      being disclosed without permission.  If Avery reasonably
      determines that such application discloses its Confidential Information
      (or other information from which its Confidential Information may be
      inferred or deduced) to the prejudice of Avery’s future patent filings or
      trade secrets, it shall within thirty (30) days of its receipt of the
      proposed patent application notify Quick-Med in writing of its objections
      to such disclosure. The parties shall thereafter work together to ensure
      that such patent application is rewritten so as adequately to protect the
      interests of both parties.

            

    

    

    
      	
              6.7

            	
              In
      the event of any disagreement as to what is included in Quick-Med Owned
      Intellectual Property or Avery  Owned Intellectual Property,
      the parties shall conduct a mediation-arbitration procedure as
      follows.  First the parties shall appoint a mediator having
      expertise in intellectual property and chemical technology and shall agree
      on the timing and location of a mediation session.  If the
      parties fail so to agree, then they shall follow the Commercial Mediation
      Procedures of the American Arbitration Association. 
      If the mediation fails to settle the matter, then the parties shall follow
      the Expedited Procedures of the Commercial Arbitration Rules of the
      American Arbitration Association, using a panel of three (3) arbitrators
      (one selected by Quick-Med, one selected by Avery and one selected by the
      two previously selected arbitrators) having expertise in
      intellectual property and chemical technology.  Judgment upon the
      award entered by the arbitrator panel may be entered in any court having
      jurisdiction thereof. 

            

    

    
    

    

    7.           REPRESENTATIONS
AND WARRANTIES

    

    
      	
              7.1

            	
              Avery’s
      Representations and Warranties.  Avery represents and
      warrants to Quick-Med as follows:

            

    

    

    
      	
               
      

            	
              (a)

            	
              Avery
      owns or possesses the necessary rights, title and licenses necessary to
      perform its obligations hereunder.  Avery has the right to enter
      into this Agreement and to perform its obligations
    hereunder.

            

    

     

    
      	
               
      

            	
              (b)

            	
              Avery
      has no agreements with any third party or commitments or obligations that
      materially conflict with its obligations under this
      Agreement.  During the term of this Agreement, Avery will not
      enter into any agreement, commitment or obligation that materially
      conflicts with its obligations under this
  Agreement.

            

    

     

    
      	
               
      

            	
              (c)

            	
              Avery
      has or will obtain from its employees, agents and consultants who perform
      work in accordance with the Joint Development Program a valid and
      sufficient written agreement vesting ownership of all their discoveries,
      improvements and ideas in Avery.

            

    

     

    
      	
               
      

            	
              (d)

            	
              Avery
      will use reasonable efforts to satisfy its respective duties and provide
      the deliverables for each effective project; provided, however, that Avery
      makes no representations or warranties that it will be able successfully
      to complete its assigned duties or
deliverables.

            

    

     

    
      	
              7.2

            	
              Quick-Med’s
      Representations and Warranties.  Quick-Med represents and
      warrants to Avery as follows:

            

    

    

    
      	
               
      

            	
              (a)

            	
              Quick-Med
      owns or possesses the necessary rights, title and licenses necessary to
      perform its obligations hereunder.  Quick-Med has the right to
      enter into this Agreement and to perform its obligations
      hereunder.

            

    

     

    
      	
               
      

            	
              (b)

            	
              Quick-Med
      has no agreements with any third party or commitments or obligations that
      materially conflict with its obligations under this
      Agreement.  During the term of this Agreement, Quick-Med will
      not enter into any agreement, commitment or obligation that materially
      conflicts with its obligations under this
  Agreement.

            

    

     

    
      	
               
      

            	
              (c)

            	
              Quick-Med
      has or will obtain from its employees, agents and consultants who perform
      work in accordance with the Joint Development Program a valid and
      sufficient written agreement vesting ownership of all their discoveries,
      improvements and ideas in
Quick-Med.

            

    

     

    
      	
               
      

            	
              (d)

            	
              Quick-Med
      will use reasonable efforts to satisfy its respective duties and provide
      the deliverables for each effective project; provided, however, that
      Quick-Med makes no representations or warranties that it will be able
      successfully to complete its assigned duties or
    deliverables.

            

    

     

     

    
      ***** This material has been omitted pursuant
to a request for confidential treatment and filed separately with the Securities
and Exchange Commission.

       

       

       

      
        
          
          

        

        
          -5-

          
            

          

        

        
          
          

        

      

    

     

     

    8.           TERMINATION

    

    
      	
              8.1

            	
              This
      Agreement shall terminate six (6) months from the Effective Date, unless
      terminated for cause or extended pursuant to Section 2.3.

            
	 	 
	8.2	Either Party may
      terminate this Agreement for cause upon any material breach of this
      Agreement by the other Party that is not cured within thirty (30) days
      after written notice thereof by the non-breaching Party.  The
      effective date of such termination shall be thirty (30) days after
      delivery of such notice.

    

    

    
      	
              8.3

            	
              All
      rights and obligations applicable under this Agreement through the
      effective date of termination shall continue to apply until such date
      irrespective of any delivery of notice of
  termination.

            

    

    

    
      	
              8.4

            	
              If
      this Agreement is terminated and Avery does not enter into a
      royalty-bearing license in the Territory to use the Quick-Med
      Antimicrobial Technology to make, have made,
      sell, offer, or import products in
      the Field, Avery will discontinue its use of materials
      incorporating Quick-Med Antimicrobial Technology and will, upon direction
      of Quick-Med, return or destroy any remaining samples of such materials
      and any thermoplastics, medical devices, and other products derived
      therefrom.  Quick-Med will return to Avery or destroy any
      samples, including without limitation, adhesive samples, received from
      Avery.

            

    

    

    
      	
              8.5

            	
              If
      this Agreement is cancelled by Quick-Med any time after the sign-on
      payment for any reason other than material breach of this Agreement by
      Avery, all technology developed theretofore as a result of this Joint
      Development Program, including, without limitation, the Quick-Med
      Antimicrobial Technology required to enable the technology developed
      hereunder will immediately be licensed royalty-free to Avery for use in
      the Field.

            

    

    

    
      	
              8.6

            	
              Termination of this Agreement shall not relieve
      either Party of any obligation accruing prior to such
      termination.  The provisions of Sections 3, 4, 5, 6, 9, 10, 11, this Section 8, Section 12.8 and
      Section 12.9 shall survive the
      termination of this
Agreement.

            

    

    

    9.           DISCLAIMER
OF WARRANTIES; LIMITATION OF LIABILITY

    

    
      	
              9.1

            	
              NEITHER
      AVERY NOR QUICK-MED SHALL UNDER ANY CIRCUMSTANCES BE LIABLE TO EACH OTHER
      OR THEIR RESPECTIVE AFFILIATES FOR INDIRECT, INCIDENTAL, SPECIAL OR
      CONSEQUENTIAL DAMAGES (INCLUDING, BUT NOT LIMITED TO, LOSS OF PRODUCTION
      TIME, PROFITS, REVENUE, OR BUSINESS) RESULTING FROM OR IN ANY WAY RELATED
      TO THIS AGREEMENT, OR THE TERMINATION OF THIS AGREEMENT, OR ARISING OUT OF
      OR ALLEGED TO HAVE ARISEN OUT OF (I) BREACH OF THIS AGREEMENT OR (II) THE
      FAILURE BY EITHER PARTY TO DEVELOP ANY PRODUCTS OR PROCESSES IN ACCORDANCE
      WITH THE JOINT DEVELOPMENT PROGRAM.  THIS LIMITATION APPLIES
      REGARDLESS OF WHETHER SUCH DAMAGES ARE SOUGHT BASED ON BREACH OF CONTRACT,
      NEGLIGENCE, OR ANY OTHER LEGAL
THEORY.

            

    

     

    
      	
              9.2

            	
              AVERY
      ACKNOWLEDGES THAT THE DEVELOPMENT ACTIVITIES
      ARE   EXPERIMENTAL IN NATURE AND THAT QUICK-MED MAKES NO
      WARRANTY, EITHER EXPRESS OR IMPLIED, INCLUDING WITHOUT LIMITATION
      WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE WITH
      RESPECT TO QUICK-MED ANTIMICROBIAL TECHNOLOGY, OR ANY DATA, PRODUCTS OR
      OTHER RESULTS OF THE DEVELOPMENT ACTIVITIES
  HEREUNDER.

            

    

     

    
      	
              9.3

            	
              QUICK-MED
      ACKNOWLEDGES THAT THE DEVELOPMENT ACTIVITIES ARE EXPERIMENTAL IN NATURE
      AND THAT AVERY MAKES NO WARRANTY, EITHER EXPRESS OR IMPLIED, INCLUDING
      WITHOUT LIMITATION WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A
      PARTICULAR PURPOSE WITH RESPECT TO AVERY ADHESIVE TECHNOLOGY, OR ANY DATA,
      PRODUCTS OR OTHER RESULTS OF THE DEVELOPMENT ACTIVITIES
      HEREUNDER.

            

    

     

    10.                      PUBLICITY

    

    Except as
required by law, regulation or rule, both Parties agree not to use the name of
the other, nor of any member of the other’s personnel, in any publicity,
advertising, or news release without the prior written approval of the other
Party, which shall not be unreasonably withheld or delayed.

    

    11.           NOTICES

    
      	 	
              All
      notices and other communications under or in connection with this
      Agreement shall be in writing and shall be deemed given (a) if delivered
      personally (including by overnight express or messenger), upon delivery,
      (b) if delivered by registered or certified mail (return receipt
      requested), upon the earlier of actual delivery or three (3) days after
      being mailed, or (c) if given by facsimile, upon confirmation of
      transmission by facsimile, in each case to the parties at the following
      addresses or to such other address or telecopy number as shall be
      specified in writing by the intended recipient of such
    notice:

            

    

    

               If
to Avery:

    

    Avery
Dennison Corporation

    c/o Avery Dennison Belgie N.V.

    Specialty Tape Division - Europe

    Tieblokkenlaan 1

    B-2300 Turnhout

    Belgium

    Attention:  Kevin E. Young, Vice President and General Manager,
Specialty Tape Division

    Facsimile:
+(32) 14 40 48 55

    

               With
copy to:

    

    Avery
Dennison Corporation

    150 North
Orange Grove Blvd.

    Pasadena,
California 91103

    Attention:  Senior
Corporate Counsel

    Facsimile:  +1-
626-304-2071

    

               If
to Quick-Med:

    

    Quick-Med
Technologies, Inc.

    Attn:
Gerald Olderman, Vice President, Research & Development

    902 NW
Fourth Street

    Gainesville,
Florida 32601

    U.S.A.

    Facsimile:
+1-352-379-1099

    

    With a
copy to:

    

    Nam H.
Nguyen

    Chief
Financial Officer

    Quick-Med
Technologies, Inc.

    160 W.
Camino Real # 238

    Boca
Raton, FL 33432

    U.S.A.

    
             
Facsimile: +1- 561-416-1390

       

      Either
party may change its mailing address by written notice to the other party in
accordance with this Section 11.

    ***** This material has been omitted pursuant
to a request for confidential treatment and filed separately with the Securities
and Exchange Commission.

     

    
      
         

      

      
        -6-

        
          

        

      

      
         

      

    

     

    12.           MISCELLANEOUS

    

    
      	
              12.1

            	
              This
      Agreement embodies the entire understanding of the parties and supersedes
      all prior agreements, oral or written, and all other communications
      between the parties relating to the subject matter hereof; provided that
      the License Agreement shall supersede this Agreement upon becoming
      effective as set forth herein.

            

    

    

    
      	
              12.2

            	
              No
      amendment or modification of this Agreement shall be valid or binding upon
      the Parties unless made in writing and signed by each Party’s duly
      authorized representative.

            

    

    

    
      	
              12.3

            	
              Neither
      party may assign its rights or delegate its obligations hereunder, either
      in whole or in part, whether by operation of law or otherwise, without the
      prior written consent of the other party. Any attempted assignment or
      delegation without consent will be void. The rights and liabilities of the
      parties under this Agreement will bind and inure to the benefit of the
      parties' respective successors and permitted
  assigns.

            

    

    

    
      	
              12.4

            	
              If
      a court of competent jurisdiction declares any provision of this Agreement
      invalid or unenforceable, or if any government or other agency having
      jurisdiction over either Party deems any provision to be contrary to any
      law, then that provision shall be severed and the remainder of the
      Agreement shall continue in full force and effect.  To the
      extent possible, the Parties shall revise such invalidated provision in a
      manner that will render such provision valid without impairing the
      Parties’ original intent.

            

    

    

    
      	
              12.5

            	
              The
      failure of a Party in any one or more instances to insist upon strict
      performance of any of the terms and conditions of this Agreement shall not
      constitute a waiver or relinquishment, to any extent, of the right to
      assert or rely upon any such terms or conditions on any future
      occasion.

            

    

    

    
      	
              12.6

            	
              Neither
      party shall be liable to the other for delays or failures in performance
      resulting from causes beyond the reasonable control of that party,
      including, but not limited to, acts of God, labor disputes or
      disturbances, material shortages or rationing, riots, acts of war,
      governmental regulations, communication or utility failures, or
      casualties.

            

    

    

    
      	
              12.7

            	
              Unless
      otherwise expressly provided, no provisions of this Agreement are intended
      or shall be construed to confer upon or give to any person or entity other
      than Avery and Quick-Med any rights, remedies or other benefits under or
      by reason of this Agreement.

            

    

    

    
      	
              12.8

            	
              The
      relationship between the Parties is that of independent
      contractors.  The Parties are not joint venturers, partners,
      principal and agent, master and servant, employer or employee, and have no
      other relationship other than independent contracting
      parties.  Neither Party has the right or authority to assume,
      create, or incur any third party liability or obligation of any kind,
      express or implied, against or in the name of or on behalf of another
      except as expressly set forth in this
Agreement.

            

    

    

    
      	
              12.9

            	
              This
      Agreement shall be governed by and construed in accordance with the laws
      of the State of Ohio without regard to the conflicts of law principles
      thereof.

            

    

    
      	
              12.10

            	 The
      Agreement may be executed in two or more counterparts, each of which shall
      be deemed an original, but all of which together shall constitute one and
      the same instrument.

    

    

    
      	
               
      

            	
              IN WITNESS WHEREOF the
      Parties have caused this Agreement to be duly
  executed:

            

    

    

    
      	 
      	
              AVERY
      DENNISON CORPORATION

            	
              QUICK-MED
      TECHNOLOGIES, INC.

            
	
              Signature

            	
              /s/
      Kevin E. Young

            	
              /s/
      J Ladd Greeno

            
	
              Name

            	
              Kevin
      E. Young

            	
              J.
      Ladd Greeno

            
	
              Position

            	
              Vice
      President / General Manager

            	
              C.E.O.

            
	
              Date

            	
              April
      17, 2009

            	
              April
      15, 2009

            

    

     

     

    
      ***** This material has been omitted pursuant
to a request for confidential treatment and filed separately with the Securities
and Exchange Commission.

       

    

    
      
         

      

      
        -7-

        
          

        

      

      
         

      

    

    EXHIBIT
A

    

    Avery-Quick-Med
License Agreement

    Agreed
Terms

    

    *****

    

    

    

    

    

    

    ***** This material has been omitted pursuant
to a request for confidential treatment and filed separately with the Securities
and Exchange Commission.

     

    
      
         

      

      
        -8-Exhibit 10.1

 

TRADEMARK LICENSE AGREEMENT

 

This TRADEMARK
LICENSE AGREEMENT (the “Agreement”)  made and
entered into April 17, 2009 (“Effective Date”) by and between
Walter Industries, Inc., a corporation duly organized and existing under
the laws of the State of Delaware (“Walter”), and Walter Investment
Management LLC, a limited liability company duly organized and existing under
the laws of the State of Delaware, and a wholly-owned subsidiary of Walter (“Spinco,”
and together with Walter, the “Parties” and each a “Party”).

 

WHEREAS, Walter owns
all the limited liability company units of Spinco;

 

WHEREAS, Walter intends
to distribute all of its interest in Spinco to Walter’s stockholders prior to
the merger referred to below (the “Spin-Off”);

 

WHEREAS, pursuant to the
Second Amended and Restated Agreement and Plan of Merger dated February 6,
2009 (as may be further amended, supplemented, restated or otherwise modified,
the “Merger Agreement”) by and among Walter, Spinco, JWH Holding
Company, LLC (“JWHHC”), and Hanover Capital Mortgage Holdings, Inc.
(“Hanover”), following the Spin-Off, Spinco will merge into Hanover;

 

WHEREAS, Walter or its
subsidiaries (collectively, the “Walter Parties”) own certain
trademarks, domain names, corporate and/or trade names that JWHHC and/or its
subsidiaries have used in connection with its mortgage finance, insurance, and
reinsurance businesses;

 

WHEREAS, prior to the
Spin-Off, JWHHC will transfer its mortgage finance, insurance and reinsurance
businesses to Walter, and Walter will transfer such businesses to Spinco; and

 

WHEREAS, Spinco and
its subsidiaries (collectively, the “Spinco Parties”) wish to use
certain trademarks, domain names, corporate and/or trade names following the
consummation of the Spin-Off and merger into Hanover, and Walter is willing to
permit such use;

 

NOW
THEREFORE, in consideration of the premises and the mutual
promises and covenants contained herein and for other good and valuable
consideration (including that recited in the Merger Agreement), the receipt and
sufficiency of which are hereby acknowledged, the Parties agree as follows:

 

SECTION 1
- GRANT OF LICENSE

 

1.1.         Licenses.

 

(a)           Walter, on behalf of itself and the other Walter Parties,
grants to the Spinco Parties a perpetual, non-exclusive, paid-up,
non-transferable (except as permitted in Section 7.4) license to use the
trademarks, corporate and/or trade names on Exhibit A solely in the United
States, its territories and possessions, and solely in connection with mortgage
finance, lending, insurance and reinsurance services and financial services
relating to the foregoing (the “Licensed Business”).

 

 

(b)           Walter hereby causes its subsidiary Jim Walter Homes, Inc.
to grant to the Spinco Parties the paid-up, non-transferable right to maintain
the registrations for the domain names on Exhibit A (the “Licensed
Domains,” and together with the other items on Exhibit A, the “Licensed
Marks”) solely for operating websites directed to customers in the United
States, its territories and possessions, and solely in connection with the
Licensed Business.

 

1.2.         Sublicensing.  Each Spinco Party may sublicense the Licensed
Marks to agents, distributors and other persons in connection with such Spinco
Party’s operation of its own business, but not for the separate or unrelated
use of any other person.  Spinco is
liable hereunder for any act or omission by any sublicensee that would breach
this Agreement if made by Spinco.

 

1.3.         Reservations.

 

(a)           Spinco acknowledges, on behalf of itself and the other
Spinco Parties, that each of them has no right under this Agreement to use any (i) trademarks,
service marks, domain names, logos, corporate or trade names, trade dress or
other source indicators (“Trademarks”) of the Walter Parties other than
the Licensed Marks; (ii) Trademark containing the term “JWH”; (iii) Trademark
containing the term “Walter,” other than the Licensed Marks; (iv) Trademark
containing the term “Jim Walter” and/or any version or variation of the “flying
W” logo depicted on Exhibit B; or (v) Trademark containing the term “Cardem.”

 

(b)           All rights not expressly licensed to the Spinco Parties in
Section 1.1 are reserved to the Walter Parties, provided
that Walter agrees that each of the Walter Parties will not use or
grant any person a license to use in the Licensed Business the name “Walter”
immediately adjacent to the word “Mortgage,” “Reinsurance,” “Investment,” “Finance,”
“Bank,” or any other word that reasonably conveys to consumers any services
included in the Licensed Business.

 

1.4.         Future Transfer.  If at any time after the Effective Date
Walter determines it no longer wishes to own any of the Licensed Marks, it
shall notify Spinco, and upon Spinco’s request, the Parties shall execute a
transfer of any such Licensed Marks to Spinco on mutually agreeable terms.

 

SECTION 2
-  OWNERSHIP

 

Each Spinco Party agrees that, as between the Walter
Parties and Spinco Parties, the Walter Parties are the sole and exclusive
owners of the Licensed Marks and all intellectual property rights therein.  Each Spinco Party shall, upon the reasonable
request and expense of Walter, take further actions and execute additional
documents to establish and perfect the above rights.  Each Spinco Party agrees not to question or
contest the validity of, or the Walter Parties’ rights in the Licensed Marks
and the associated goodwill.  For
clarity, the foregoing shall not limit Spinco from bringing any claim that
Walter has breached this Agreement.

 

SECTION 3
-  USE

 

3.1.         New Marks.  Each Spinco Party may adopt and use as
Trademarks any variations of the Licensed Marks on Part I of Exhibit A,
if such Trademarks use “Walter” immediately adjacent to the word “Mortgage,” “Reinsurance,”
“Investment,” “Finance,” or any other word that reasonably conveys to consumers
any services included in the Licensed Business. 
Each 

 

 

Spinco Party may adopt and use reasonable
variations of the Licensed Marks on Part II of Exhibit A in its
discretion, subject to Section 1.3. 
Spinco will give Walter prompt notice of any such new Trademark, which
will be included in the definition of “Licensed Marks” for all purposes
hereunder.

 

3.2          Domain Names/Internet.  Each Spinco Party will not be deemed to have
breached the territorial restriction in Section 1.1(b) if persons
outside the United States access any Internet websites operated under the
Licensed Domains, provided that such websites are controlled by such Spinco
Party and are directed at U.S. customers. 
Walter will cause the transfer of the registrations for the Licensed
Domains to a designated Spinco Party within 30 days of the Effective Date, at
Spinco’s expense for Walter’s out-of-pocket costs.

 

3.3          Quality Assurance.  Each Spinco Party will use the Licensed Marks
solely (i) in accordance with good trademark practice; and (ii) in
connection with products, services, content and materials maintaining quality
levels at least as high as those of Walter’s past practice and that reflect
favorably on Walter.  Each Spinco Party
will not take any action that could reasonably be expected to harm the Licensed
Marks or their associated goodwill.  Each
Spinco Party shall, at its sole expense, comply at all times with all
applicable laws, regulations, rules and reputable industry practice
pertaining to the Licensed Business and its use of the Licensed Marks.

 

3.4          Samples.  To ensure the Spinco Parties’ compliance with
Section 3.3, upon Walter’s request, Spinco will provide Walter with
representative samples of all materials bearing the Licensed Marks in any
media, no more than once a year (unless reasonably justified under the
circumstances).  If, in the exercise of
its commercially reasonable judgment, Walter finds that any samples violate Section 3.3,
Walter will inform Spinco in writing. 
Spinco will correct such non-compliance within a reasonable time
thereafter, not to exceed 30 days.

 

SECTION 4
-  INFRINGEMENT

 

Spinco will notify Walter promptly after any
Spinco Party becomes aware of any actual or threatened infringement, imitation,
dilution, misappropriation, or other unauthorized use or conduct in derogation
of the Licensed Marks.  Walter will have
the sole right to bring any claim, action, suit or proceeding (“Action”)
to remedy the foregoing, and the Spinco Parties will cooperate with Walter in
same at Walter’s expense.

 

SECTION 5
- WARRANTY AND INDEMNITY

 

5.1.         By Each Party.  Each Party represents and warrants to the
other Party that (i) the warranting Party has the requisite corporate or
company power and authority to enter into this Agreement; (ii)  the
warranting Party’s execution, delivery and performance of this Agreement has
been duly authorized by all requisite corporate or company action on its part; (iii) this
Agreement has been duly executed and delivered by the warranting Party and,
assuming due authorization, execution and delivery, constitutes a legal, valid
and binding agreement, enforceable against the warranting Party in accordance
with its terms, subject to bankruptcy, insolvency, reorganization, moratorium
and similar laws of general application relating to or affecting creditors’
rights and to general equity principles; and (iv) neither the execution
and 

 

 

delivery by the warranting Party of this
Agreement or compliance and performance with any of the provisions hereof
results in a default (or an event that, with notice or lapse of time or both, would
become a default) or gives rise to any right of termination by any third Party,
cancellation, amendment or acceleration of any obligation or the loss of any
benefit under, any contract binding the warranting Party.

 

5.2.         DISCLAIMER.  EXCEPT AS EXPRESSLY SET FORTH IN SECTION 5.1,
THE WALTER  PARTIES MAKE NO
REPRESENTATIONS OR WARRANTIES, EXPRESS OR IMPLIED, WITH RESPECT TO THIS
AGREEMENT OR THE LICENSED MARKS, AND EXPRESSLY DISCLAIM SAME, INCLUDING ANY
WITH RESPECT TO TITLE, NON-INFRINGEMENT, MERCHANTABILITY, VALUE, RELIABILITY OR
FITNESS FOR USE.  EACH SPINCO PARTY’S USE
OF THE LICENSED MARKS IS ON AN “AS IS” BASIS AND IS AT ITS OWN RISK.

 

5.3.         Indemnity. Each Party
will defend at its expense, hold harmless and indemnify the other Party and its
affiliates and their respective directors, officers, shareholders, agents and
employees against any third-party Actions and all related losses, awards,
judgments, settlements, costs, fees, expenses, liabilities and damages
(including reasonable attorneys’ fees and costs of suit) to the extent arising
out of or relating to the indemnifying Party’s breach of this Agreement or any
representations, warranties, covenants or agreements herein.

 

SECTION 6
- TERM

 

6.1.         Term.  The term of this Agreement commences as of
the Effective Date and lasts in perpetuity, unless termination occurs pursuant
to Section 6.2 or 6.3.

 

6.2.         Breach.  If either Party materially breaches any
provision hereof, the non-breaching Party may terminate this Agreement if the
breaching Party does not cure such breach within 30 days following
written notice thereof (or any mutually-agreed extension).  Any such termination shall be effective upon
written notice by Walter to Spinco made after such 30-day period (or any
mutually-agreed extension).

 

6.3.         Bankruptcy.  To the fullest extent permitted by applicable
law, if Spinco (i) is unable to pay its debts when due, (ii) makes
any assignment for the benefit of creditors, 
(iii) files any petition under the bankruptcy or insolvency laws, (iv) has
a receiver or trustee to be appointed for its business or property, or (v) is
adjudicated bankrupt or insolvent, Walter may at its discretion
terminate this Agreement, upon 30 days’ prior written notice.

 

6.4.         Survival.  Sections 2, 5, 6.4, 7.5 & 7.7 shall
survive any termination of this Agreement.

 

SECTION 7
-  MISCELLANEOUS

 

7.1.         Notice.  All notices hereunder will be in writing and
will be deemed given upon (a) confirmed receipt of a facsimile
transmission, (b) confirmed delivery of a standard overnight courier or when
delivered by hand or (c) five business days after the date mailed by
certified or registered mail (return receipt requested), postage prepaid, to
the Parties at the following addresses (or at such other addresses for a Party
as will be specified by like notice):

 

 

	
  If to Walter:

  	
   

  	
  If to Spinco:

  
	
   

  	
   

  	
   

  
	
  Walter Industries, Inc.

  	
   

  	
  Walter Investment Management,
  LLC

  
	
  4211 W. Boy Scout Blvd., 10th Floor

  	
   

  	
  4211 W. Boy Scout Blvd., 4th Floor

  
	
  Tampa, Florida 33607-5724

  	
   

  	
  Tampa, Florida 33607-5724

  
	
  Attention: General Counsel

  	
   

  	
  Attention: General Counsel

  
	
  Facsimile: (813) 871-4399

  	
   

  	
  Facsimile: (813) 871- 4430

  
	
   

  	
   

  	
   

  
	
  with a copy to:

  	
   

  	
  with a copy to:

  
	
   

  	
   

  	
   

  
	
  Simpson Thacher & Bartlett LLP

  	
   

  	
  Simpson Thacher & Bartlett LLP

  
	
  425 Lexington Avenue

  	
   

  	
  425 Lexington Avenue

  
	
  New York, New York 10017

  	
   

  	
  New York, New York 10017

  
	
  Attention: Peter J.
  Gordon, Esq. and

  	
   

  	
  Attention: Peter J.
  Gordon, Esq. and

  
	
    Lori E.
  Lesser, Esq.

  	
   

  	
    Lori E.
  Lesser, Esq.

  
	
  Facsimile: (212) 455-2502

  	
   

  	
  Facsimile: (212) 455-2502

  

 

7.2.         Construction.  The article
and section headings in this Agreement are for reference purposes only and will
not affect the interpretation of this Agreement.

 

7.3.         Severability.  If any
provision of this Agreement or the application of any such provision to any
person or entity or circumstance, shall be declared judicially to be invalid,
unenforceable or void, such decision shall not have the effect of invalidating
or voiding the remainder of this Agreement, it being the Parties’ intent and
agreement that this Agreement shall be deemed amended by modifying such
provision to the extent necessary to render it valid, legal and enforceable
while preserving its intent or by substituting another provision that is legal
and enforceable and that achieves the same objective.

 

7.4.         Assignment; Binding Effect.  Neither this
Agreement nor any of the rights, benefits or obligations hereunder may be
assigned or assumed by a Party (whether by operation of law or otherwise)
without the prior written consent of the other Party, which consent will not be
unreasonably withheld, except to an affiliate as a result of an internal
reorganization for tax or administrative purposes.  For clarity, a merger, reorganization
(including in bankruptcy), change of control or sale of all or substantially
all of the assets or business to which this Agreement relates constitutes an “assignment”
hereunder.  In the event of a permitted
assignment hereunder, this Agreement will be binding upon, inure to the benefit
of and be enforceable by the Parties and their respective successors and
permitted assigns.  Any attempted
assignment in violation of the foregoing will be null and void at the outset.

 

7.5.         Third Parties.  No person or
entity (other than as specified in this Agreement) will be deemed a third party
beneficiary under or by reason of this Agreement.  Spinco is liable 

 

 

hereunder for any act or omission by any
Spinco Party that would breach this Agreement if made by Spinco.

 

7.6.         Entire Agreement.  This
Agreement constitutes the entire agreement of the Parties and supersedes all
prior and contemporaneous agreements and understandings, both written and oral,
between the Parties with respect to the subject matter hereof.  Exhibits A and B are expressly made a part
of, and incorporated by reference into this Agreement.

 

7.7.         Governing Law/Jurisdiction.  This
Agreement will be governed by, and construed in accordance with, the laws of
the State of New York applicable to contracts made and to be performed
therein.  Each Party irrevocably submits
to the jurisdiction of the state or federal courts in New York, New York for
the purposes of any Action arising out of this Agreement.  Each party unconditionally waives any right
to a trial by jury in respect of any such action.  The Parties agree that irreparable damage
would occur to Walter in the event that Spinco materially breaches any
provision of Sections 1-3 of this Agreement. 
Therefore, Walter may seek an injunction to prevent or enjoin such
breach in the above courts without posting bond or other security.

 

7.8.         Counterparts.  This
Agreement may be executed in one or more counterparts, each of which will be
deemed to be an original, but all of which together will constitute one
agreement.  Facsimile signatures will
serve as originals for purposes of binding the Parties hereto.

 

IN WITNESS
WHEREOF, the Parties have caused this Agreement to be executed as of the date
written above.

 

	
   

  	
   

  	
  WALTER INDUSTRIES, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  /s/

  
	
   

  	
   

  	
  Name: 

  	
   

  	
  Victor P. Patrick

  
	
   

  	
   

  	
  Title:

  	
   

  	
  Vice Chairman, Chief Financial Officer and General Counsel

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  WALTER INVESTMENT MANAGEMENT LLC

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  /s/

  
	
   

  	
   

  	
  Name: 

  	
   

  	
  Mark J. O’Brien

  
	
   

  	
   

  	
  Title:

  	
   

  	
  Chairman and Chief Executive Officer

  

 

 

EXHIBIT
A — LICENSED MARKS

 

Part I

 

Walter Investment Management Corp.

 

Walter Investment Management LLC

 

Walter Mortgage Company

 

WMC

 

Walter Investment Reinsurance Co.
Ltd.

 

walterinvestment.com

 

walterinvestmentcorp.com

 

walter-investment.com

 

walter-investment.net

 

walter-investment.org

 

walter-investments.com

 

walter-investments.net

 

walter-investments.org

 

walterinv.com

 

walterinv.net

 

walterinv.org

 

waltermortgage.com

 

waltermortgage.net

 

waltermortgage.org

 

waltermortgageservicing.com

 

gowimc.com

 

A-1

 

Part II

 

Best Insurors

 

Best Insurors, Inc.

 

Mid-State Capital Corporation

 

Mid-State Homes, Inc.

 

Mid-State Capital, LLC

 

bestinsurors.com

 

bestinsurorsinc.com

 

A-2

 

EXHIBIT
B

 

	
  The “flying W” logo –

  	
  

  

 

A-3

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00157-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00157-of-00352.parquet"}]]