Document:

China Biologic Products, Inc. - Exhibit 10.1 - Filed by
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Exhibit 10.1

Equity Transfer Agreement 

This equity transfer agreement is entered into as of July 8,
2010 in Tai’an, Shandong Province, by and between the following parties: 

Transferee: Logic Management Consulting (China) Co., Ltd.
(hereinafter “Transferee”) 

Address: 2nd floor of the Comprehensive Building of
Xinghuo Technology Park, Zhongtianmen Street, High-tech industry District,
Tai’an, Shandong Province, PRC 

Legal Representative: Tung Lam           Title: Chairman of the Board of
Directors 

Transferor: Shandong Taibang Biological Product Co., Ltd. (PRC)
(hereinafter “Transferor”) 

Address: No.14 Hushan E. Road, Tai’an,
Shandong Province 

Representative: Tung Lam Title: CEO 

Whereas: 

	1. 	
      Shandong Taibang Medical Co., Ltd. (hereinafter
      “Taibang Medical” or “Subject Equity
      Interests”) is a foreign-invested limited liability company duly
      established in accordance with PRC laws and lawfully existing. Its
      Business License Number is 370900018022068 and its registered capital is
      fully received as of the date of this Agreement. 

	 	
       

	2. 	
      Transferee is a limited liability company established in
      accordance with PRC laws, which holds no equity interest in Taibang
      Medical as of the date of this Agreement. 

	 	
       

	3. 	
      Transferor is a limited liability company established in
      accordance with PRC laws, which holds 100% equity interest in Taibang
      Medical. 

	 	
       

	4. 	
      Transferor hereby agrees to transfer Subject Equity
      Interests to Transferee according to the terms and conditions of this
      Agreement, and Transferee agrees to accept the Subject Equity Interests
      according to the terms and conditions of this Agreement.

NOW THEREFORE, upon mutual agreement, Transferee and Transferor
hereby execute this Equity Transfer Agreement through the following stipulations
to be complied with: 

Article 1 Definition 

	1.1 	The nouns and terminologies have the following meanings in this
      Agreement, except for the otherwise defined: 

	 	(1) 	
      “This Agreement” means this Equity Transfer Agreement
      including any written amendment, revision or deletion agreed between both
      parties and approved by relevant authorities. 

	 	 	
       

	 	(2) 	
      “Working day” means days other than Sunday, Saturday,
      legal holiday and public holiday in PRC. 

	 	 	
       

	 	(3) 	
      “The Closing day” means the day on which all the Subject
      Equity Interests have been transferred to the Transferee and the
      alteration registration formalities with AIC are completed for the equity
      interests transfer. 

	 	 	
       

	 	(4) 	
      “Year, month, day” means Calendar year, month, day,
      except when otherwise defined in this Agreement. 

	 	 	
       

	 	(5) 	
      “Transfer price” means the consideration paid by
      Transferee to Transferor for obtaining the Subject equity interests under
      the provisions of this Agreement. 

	 	 	
       

	 	(6) 	
      “Subject Equity Interests” means the 100% equity interest
      in Taibang Medical that Transferor transfers to Transferee according to
      the clauses and conditions of this Agreement. 

1.2 General Paraphrase 

The paraphrase of this Agreement is processed as follows,
except for those otherwise required: 

	 	(1) 	The name of the title of each chapter is only for reference in this
      Agreement. It does not compose part of this Agreement and does not assist
      in any paraphrase in this Agreement. 
	 	 	 
	 	(2) 	The amounts referred to in this Agreement are all in Renminbi, unless
      otherwise indicated. 

Article 2 Equity Transfer Price and Payment

	2.1 	
      The two parties have agreed after negotiation, that
      Transferor transfers the Subject Equity Interests to Transferee and
      Transferee accepts the Subject Equity Interests and pays the transfer
      price accordingly, in compliance with the prerequisites set in Article 3
      of this Agreement and other restrictive terms and conditions of this
      Agreement. 

	 	
       

	2.2 	
      Transferee and Transferor determined after negotiation
      that the Transfer Price is RMB6,440,000 (the “Transfer Price”). 

	 	
       

	2.3 	
      The Transferee shall, within 60 days after the updated
      business license is obtained, pay the Transfer Price to the Transferor in
      RMB. Meanwhile, Transferor shall designate and notify to Transferee its
      receipt account at least ten days in advance. 

Article 3 Prerequisites 

	3.1 	The two parties agree that the success of the equity
      transfer under this Agreement and the payment of the transfer price depend
      on the full satisfaction of the following prerequisites:

	 	3.1.1 	
      The Subject Interest transfer has been approved through
      obtaining more than two-thirds votes in favor of the transfer of the
      Subject Equity Interests by the Board of directors of Taibang Medical.
    

	 	 	
       

	 	3.1.2 	
      All necessary documents, such as approval, consents and
      permits, for the completion of the transaction under this Agreement, have
      been obtained, including but not limited to approval from the Bureau of
      Commerce and other authorities, the certificate of approval for
      foreign-invested enterprises, and the registration modification by the
      Administration for Industry and Commerce for Taibang Medical. 

	 	 	
       

	 	3.1.3 	
      The declaration, commitment and guarantee made by all
      parties in Article 5 of this Agreement is true, accurate and effective
      until the closing day. 

	3.2 	The two parties agree that each of them shall make all efforts to
      complete the above prerequisites. 

Article 4Closing and Transition 

	4.1 	
      Transferor shall give the following documents to
      Transferee on or before the closing day: the approval from the Bureau of
      Commerce for the equity transfer under this Agreement and the registration
      modification documents in China’s Administration for Industry and
      Commerce. 

Article 5 Declaration, Guarantee and Commitment

	5.1 	
      Transferee makes the following statement, commitment and
      guarantee to Transferor unconditionally and irrevocably.

	 	5.1.1 	
      Transferee is an independent legal entity established in
      accordance with Chinese laws and validly existing, and has full capacity
      and authority to enter into this Agreement and to exercise its rights and
      perform its obligations in accordance with this Agreement. 

	 	 	
       

	 	5.1.2 	
      Transferee enters into this Agreement and exercises its
      rights and performs its obligations accordingly, and shall not violate.
      

	 	5.1.2.1 	
      any laws Transferee shall comply with. 

	 	 	
       

	 	5.1.2.2 	
      any document or article as the basis of Transferee’s
      establishment and/or any document that imposes effective restriction on
      Transferee. 

	 	5.1.3 	Transferee has never, until the date of this Agreement, signed as a
      signatory party on any document or agreement that imposes restriction on or
      prohibits Transferee from entering into this Agreement or exercising its
      right or performing its obligation as stipulated in this Agreement. 

	 	5.1.4 	
      Transferee has obtained all proper authorization, permits
      and approvals on signing this Agreement and performing and completing the
      transactions under this Agreement. 

	 	 	
       

	 	5.1.5 	
      This Agreement constitutes a valid, binding and
      executable document to Transferee, and all statements made by Transferee
      in this Agreement are true, accurate and complete.

	5.2 	Transferor makes the following statements, commitments and guarantees
      to Transferee unconditionally and irrevocably: 

	 	5.2.1 	
      Transferor is a limited liability company established in
      accordance with PRC laws and validly existing, and has full capacity and
      authority to enter into this Agreement and to exercise its rights and
      perform its obligations in accordance with this Agreement. 

	 	 	
       

	 	5.2.2 	
      Transferor enters into this Agreement and exercises its
      rights and performs its obligations under this Agreement, and shall not
      violate any laws and regulations that Transferor shall comply with.
  

	 	 	
       

	 	5.2.3 	
      Transferor has never, until the date of this Agreement,
      signed as a signatory party on any document or agreement that imposes
      restriction on or prohibits Transferor from entering into this Agreement
      or exercising its right or performing its obligation as stipulated in this
      Agreement. 

	 	 	
       

	 	5.2.4 	
      Transferor has obtained all proper authorization, permits
      and approvals on signing this Agreement and performing and completing the
      transactions under this Agreement. 

	 	 	
       

	 	5.2.5 	
      This Agreement constitutes a valid, binding and
      executable document to Transferor, and all statements made by Transferor
      in this Agreement are true, accurate and complete.

	 	5.2.6 	
      The Transferor holds lawful titles to the Subject Equity
      Interests, and the Subject Equity Interests are not subject to any
      restrictions from mortgages, liens or any other rights from third parties
      except that the transaction under this Agreement shall be approved by
      relevant authorities. 

Article 6 Liability for Breach 

	6.1 	
      Any party that does not appropriately or completely
      perform any or all obligations under this Agreement will be regarded as
      being in breach hereof. The non-breaching party is entitled to terminate
      this Agreement promptly and to require the breaching party to compensate
      the non-breaching party for its losses. 

	 	
       

	6.2 	
      The modification or rescission of this Agreement does not
      affect the right of the non-breaching party to ask for compensation from the breaching party. 

Article 7 Force Majeure 

	7.1 	
      “Force Majeure” herein means any events which could not
      be foreseen, avoided or overcome, and the impact of the events cannot be
      eliminated through reasonable efforts and expenses, including but not
      limited to, earthquake, typhoon, flood, fire, war, or other events
      recognized by the international business practice. 

	 	
       

	7.2 	
      Either party that has been prevented by force majeure
      from fully or partially performing its obligations hereunder is suspended
      from performing the foregoing obligations. The suspension period will last
      as long as the force majeure event lasts. 

	 	
       

	7.3 	
      The party that has been affected by the force majeure
      event and has suspended its obligations performance shall, within the
      shortest period of time, notify the other party the force majeure event in
      written form, and shall, within 15 days of the occurrence of the force
      majeure event, provide to the other party by express or air mail the
      proper proof of the occurrence and the probable duration of the force
      majeure event. The party which issues the notice shall use its best
      efforts to mitigate the impact and losses caused by the force majeure.
    

	 	
       

	7.4 	
      Transferor and Transferee shall, after occurrence of the
      force majeure event, determine promptly the subsequent procedure of
      implementation of this Agreement through friendly negotiation. The
      obligations of both parties under this Agreement shall be resumed after
      the vanishing of the force majeure event or the influence of the force
      majeure event. 

Article 8 Confidentiality 

	8.1 	
      Transferor and Transferee shall keep confidential all the
      information that comes into the knowledge of Transferor and Transferee
      during this equity transfer Agreement, including but not limited to:
    

	 	8.1.1 	all terms and conditions in this Agreement, 
	 	 	 
	 	8.1.2 	negotiations related to this Agreement, 
	 	 	 
	 	8.1.3 	the subject of this Agreement, 
	 	 	 
	 	8.1.4 	Business secrets of both Transferor and Transferee,

except for the disclosure according to
term 8.2 in this Agreement. 

	8.2 	Only under the following circumstances, the information in the term
      8.1 could be disclosed by Transferor and Transferee

	 	8.2.1 	under legal requirements, 

	 	8.2.2 	
      under the requirement of any competent government
      authority, regulatory body or stock exchange committee, 

	 	 	
       

	 	8.2.3 	
      disclosure is made to Transferor or Transferee’s own
      professional consultants (including but not limited to lawyers). However,
      the party that makes such disclosure shall bear joint confidentiality
      obligations with its professional consultants, 

	 	 	
       

	 	8.2.4 	
      information of this Agreement is known by the public not
      due to the fault of Transferor or Transferee, 

	 	 	
       

	 	8.2.5 	
      written consent is made by both Transferor and Transferee
      in advance. 

	8.3 	Even if the transaction under this Agreement is not completed due to
      any reason, Transferor and Transferee shall comply with this
      confidentiality clause. 
	 	 
	8.4 	Transferor and Transferee shall comply with this confidentiality
      clause even after this Agreement is completed, without time limitation.
  

Article 9 Applicable Laws and Settlement of
Disputes 

	9.1  	
      The execution, effectiveness, interpretation and
      performance of this Agreement and the settlement of any disputes arising
      from the transaction under this Agreement shall be governed by the laws of
      the PRC issued publicly. 

	 	
       

	9.2  	
      Any dispute arising out of or related to this Agreement
      shall be settled by friendly negotiation by both parties hereby. If no
      resolution is attained through friendly negotiation within 30 days after
      the dispute arises, any party may bring a legal action at the China
      International Trade Arbitration Commission. The arbitration decision is
      final and binding upon all parties in the disputes. The arbitration fee
      shall be paid by the loser unless otherwise specified. And during the
      arbitration process, except for the part in dispute and under arbitration,
      this Agreement shall continue to be implemented. 

Article 10 Effectiveness and other terms

	10.1 	
      This Agreement is effective after the legal
      representatives or authorized representatives of both Transferor and
      Transferee sign on this Agreement and the official seal of both Transferor
      and Transferee is chopped on this Agreement, and also upon approval by the
      relevant government authority. 

	 	
       

	10.2 	
      This Agreement will be made in six counterparts with
      Transferor and Transferee each holding one and the other copies given to
      Taibang Medical and submitted to the relevant government authorities.
    

	 	
       

	10.3 	
      The rights, obligations or liabilities under this
      Agreement are not transferable unless agreed by both

		Transferor and Transferee. 
	 	 
	10.4 	
      Modification or supplementation on this Agreement is
      effective only when a written document is signed between Transferor and
      Transferee after negotiation. Any written supplemental document and
      appendix to this Agreement is deemed to be inseparable part of this
      Agreement and has equal legal force with this Agreement. 

	 	
       

	10.5 	
      The transaction charges arising from the execution of
      this Agreement will be paid by the Transferor and Transferee respectively
      

	 	
       

	10.6 	
      This Agreement is officially signed by both parties on
      the date recorded on the first page of this Agreement.

(End of the main text) 

The page for signature 

(No text, only signature page for the Equity Transfer
Agreement) 

Transferee: Logic management consulting (china) Co., Ltd. 

Legal representative or Authorized representative: 

/s/ Tung Lam 

Transferor: Shandong Taibang Biological Products Co., Ltd.
(PRC) 

Legal representative or Authorized representative: 

/s/ Tung Lam 

July 8, 2010exh10_1.htm

Exhibit 10.1

 

 

SETTLEMENT AND LICENSE AGREEMENT

This Settlement and License Agreement (the "Agreement") is entered into by LML Patent Corp ("LML"), on the one hand, and M&T Bank Corporation, M&T Bank, and M&T Bank, N.A. (collectively, "M&T Bank"), on the other hand.  LML and M&T Bank are individually referred to as "Party" and collectively as the "Parties."  This Agreement is effective as of September 22, 2010 ("Effective Date").

RECITALS

WHEREAS, LML represents that it owns rights in U.S. Patent No. RE40,220 ("the '220 Patent"), which LML asserts is related to Electronic Check Conversion systems and services;

WHEREAS, LML began an action against M&T Bank and other defendants in the United States District Court for the Eastern District of Texas, Marshall Division, 2-08-CV-448­DF ("Litigation I"), and LML also began a separate action against other defendants in the United States District Court for the Eastern District of Texas, Marshall Division, 2-09-CV-180-TJW ("Litigation II") (collectively, the "Lawsuits").  In both Litigations I and II, LML alleges infringement of LML's '220 Patent;

WHEREAS, LML's stated standard royalty rate for use of the LML Patents is $0.01 U.S. dollars for each ARC SEC coded ACH transaction and $0.03 U.S. dollars for each POP, BOC, WEB, or TEL SEC coded ACH transaction;

WHEREAS, M&T Bank is a named defendant in Litigation I and M&T Bank has denied liability;

WHEREAS, the Parties have agreed to enter into this Agreement to avoid the risk and uncertainty of trial;

WHEREAS, the Parties wish to settle their dispute, and M&T Bank desires to obtain certain rights under the LML Patents (as hereinafter defined) and LML is willing to grant such rights;

NOW, THEREFORE, in consideration of the above premises and mutual covenants contained in this Agreement and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows:

	
1.  

	
DEFINITIONS.  The following definitions apply to this Agreement:

	
(a)  

	
"ACH" is the acronym for the "Automated Clearing House" Network and means the funds transfer system governed by the National Automated Clearing House Association ("NACHA").

	
(b)  

	
"ACH Transaction" means an entry complying with the NACHA ACH Record Format Specifications, for NACHA standard entry class codes ARC, WEB, POP, TEL, and BOC.

 

 

  

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(c)  

	
"Acquires" means to obtain an interest in an entity either by acquisition, purchase, or merger.  "Acquired," "Acquiring," "Acquisition," and other variations of the word "Acquire" shall have correlative meanings.

	
(d)  

	
"Affiliate" of a party means any Entity that, directly or indirectly, owns or controls, is owned or controlled by, or is under common ownership or control with, such party, where "control" means: (i) for an Entity incorporated in the U.S. or whose country of domicile is the U.S., ownership of fifty percent (50%) or more of the capital stock or other ownership interest of the Entity carrying the right to vote for or appoint directors or their equivalent (if not a corporation), or otherwise to direct or cause the direction of the management policies of the Entity; or (ii) for an Entity incorporated outside of the U.S. or whose country of domicile is outside of the U.S., ownership of less than fifty percent (50%) of the capital stock or other ownership interest of the Entity carrying the right to vote for or appoint directors or their equivalent (if not a corporation), or otherwise to direct or cause the direction of the management policies of the Entity, if the country of incorporation or the country of domicile of the Entity requires that foreign ownership be less than fifty percent (50%), but only to the extent that the maximum allowable amount of securities instruments or other ownership interests of the Entity is owned by the party; provided, however, that an Entity shall be considered an Affiliate of a party only for the periods where such ownership or control exists.

	
(e)  

	
"Bank" means any institution that is a member of the Federal Reserve System and that (i) accepts demand deposits to consumer accounts from which a consumer may withdraw funds by check or share draft for payment to others; and (ii) is engaged in the business of making commercial loans.

	
(f)  

	
"Court" means the United States District Court for the Eastern District of Texas, Marshall Division.

	
(g)  

	
"Covered Products and Services" means any and all Infringing Products and Services (and any of its/their components) that have been, will be, or are being Exploited by or for M&T Bank (including properly licensed successors (subject to Section 6 (Change in Control/Acquisitions)) and permitted assigns (subject to Section 9.1 (Assignment)) or its Affiliates and only to the extent such Exploitation is done by or for M&T Bank (including properly licensed successors (subject to Section 6 (Change in Control / Acquisitions)) and permitted assigns (subject to Section 9.1 (Assignment)) or its Affiliates and not done on behalf of an Excluded Party.

	
(h)  

	
"Covered Third Parties" means any Entity other than an Excluded Party, to the extent that such Entity Exploits any Covered Products and Services.

 

 

  

-2-

  

 

	
(i)  

	
"Excluded Party" means any Bank.  Notwithstanding the foregoing, Excluded Party does not include, and shall not be interpreted to include: (a) any M&T Bank Entity; (b) a Bank for whom M&T Bank processes ACH Transactions so long as all such ACH Transactions do not exceed 10,000 transactions in the aggregate among all such Banks in any month; or (c) any Entity that: (i) is dismissed with prejudice from a lawsuit for Infringement of any LML Patent; (ii) is found not to Infringe all asserted claims of any LML Patent that are also not found to be invalid or unenforceable after all appeals are exhausted; (iii) otherwise enters into a settlement agreement with any LML Entity concerning any LML Patent; or (iv) is otherwise licensed to any LML Patent.

	
(j)  

	
"Entity" means any individual, trust, corporation, person or company, partnership, joint venture, limited liability company, association, firm, unincorporated organization or other legal or governmental entity.

	
(k)  

	
"Exploit" means to own, design, develop, acquire, make, have made, use, sell, offer to sell, perform, provide, import, export, and/or the exercise of all other activities specified under 35 U.S.C. § 271 and foreign counterparts thereto (as the foregoing 35 U.S.C. § 271 and foreign counterparts thereof may be amended or superseded from time to time).  "Exploited," "Exploitation," and other variations of the word "Exploit" shall have correlative meanings.

	
(l)  

	
"Infringement" or "Infringes" means direct infringement, indirect infringement, infringement under the doctrine of equivalents, or any other theory of infringement in any jurisdiction worldwide.

	
(m)  

	
"Infringing Products and Services" means any and all products and services the Exploitation of which, but for the license, release, or covenant-not-to-sue granted in this Agreement, would Infringe, alone or jointly with other products or services, any claim of any LML Patent.

	
(n)  

	
"Non-Covered Affiliate" with respect to an Entity means any affiliate of that Entity that is not covered by a license, release or covenant-not-to-sue under the LML Patents.

	
(o)  

	
"M&T Bank Entities" means M&T Bank and its Affiliates and its or their predecessors, successors (subject to Section 6 (Change in Control / Acquisitions)) and permitted assigns (subject to Section 9.1 (Assignment)).  For the avoidance of doubt, the M&T Bank Entities include, but are not limited to, the Entities listed on Exhibit A to this Agreement, all of which M&T Bank represents fall within the definition of "M&T Bank" or "Affiliates," as defined in this Agreement.

	
(p)  

	
"LML Entities" means LML and its Affiliates and its or their predecessors, successors and permitted assigns (subject to Section 9.1 (Assignment)).

 

 

  

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(q)  

	
"LML Patents" means (i) U.S. Patent No. RE40,220, (ii) any issued patent and any pending patent application anywhere in the world that LML or any Affiliate of LML currently owns or controls (or has the right to own or control) as of the Effective Date of this Agreement; (iii) any patent or patent application worldwide to which any of the foregoing patents and/or patent applications claims priority or are otherwise related, including, but not limited to all parents, provisionals, substitutes, renewals, continuations, continuations-in-part, reissues, reexamination certificates, divisionals, foreign counterparts, oppositions, continued examinations, reexaminations, and extensions of any of the foregoing; and (iv) applications of the foregoing patents and/or patent applications described above.  For purposes of this definition, a patent or patent application is deemed to be under LML's "control" if LML has the right to assert a claim of Infringement or grant a license under such patent or patent application.

	
2.  

	
SETTLEMENT OF THE LITIGATION

	
2.1.  

	
Stipulated Dismissal.  The Parties agree to direct their counsel to file with the Court a joint motion for dismissal with prejudice of the Parties' respective claims for relief against the other Party in Litigation I as set forth in Exhibit B within five (5) days after the receipt of payment specified in Section 3.1.  The Parties shall promptly proceed with any and all additional procedures needed to dismiss with prejudice the Parties' respective claims for relief against the other Party in Litigation I.

	
2.2.  

	
No Award of Fees or Costs.  The Parties agree that they shall bear their own expenses, costs and attorneys' fees relating to Litigation I and negotiating the Agreement, including the transactions contemplated herein.

	
2.3.  

	
No Attempt to Invalidate.  M&T Bank agrees that, in the absence of a subpoena or court order requiring its participation or support, it shall not participate in or support any suit, claim, action, litigation, administrative proceeding, or proceeding of any nature brought against LML that challenges the validity or enforceability of the LML Patents so long as the M&T Bank Entities:  (a) have a license to the LML Patents, subject to Section 6 (Change in Control/Acquisitions); (b) are fully released for all claims of Infringement of the LML Patents, subject to Section 6 (Change in Control / Acquisitions); and (c) are not accused of Infringement of any LML Patent, subject to Section 6 (Change in Control/Acquisitions).  However, the M&T Bank Entities may challenge the validity or enforceability of the LML Patents if: (i) any suit, claim, action, litigation or proceeding to enforce one or more of the LML Patents is brought against any M&T Bank Entity or Covered Third Party related to one or more of the LML Patents, or places any M&T Bank Entity or Covered Third Party in a reasonable apprehension of being sued on one or more of the LML Patents, or (ii) any M&T Bank Entity receives a request for indemnification related to an LML Patent, but only after the M&T Bank Entity has provided sixty (60) days written notice to LML of its intent to challenge the validity or enforceability of the asserted LML Patent(s).

 

 

  

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3.  

	
PAYMENT, TERM AND TERMINATION

	
3.1.  

	
Payment by M&T Bank.  M&T Bank agrees to pay to LML the non–refundable sum of six hundred and ninety-five thousand U.S. dollars ($695,000.00) within four (4) business days following the Effective Date in consideration of the terms set forth in this Agreement.  (Nothing in this paragraph 3.1, however, shall diminish M&T Bank's right to seek damages independently for an alleged breach of this Agreement by LML).  Such amount will be delivered to LML's counsel, McKool Smith P.C., via wire transfer to the following account:

Bank:  Inwood National Bank

Address:  7621 Inwood Road, Dallas, TX 75209

Acct#

ABA#

Account Name:  McKool Smith IOLTA Trust Account

	
3.2.  

	
Term.  Unless earlier terminated as specified in this section, the term of this Agreement shall commence upon the Effective Date and shall continue until the expiration of all causes of action and claims arising out of or related to the LML Patents or the Lawsuits.  Otherwise, this Agreement may only be earlier terminated in whole or in part pursuant to Section 3.3 (Termination Due to Non-Payment by M&T Bank) or upon the mutual written agreement of the Parties.

	
3.3.  

	
Termination Due to Non–Payment by M&T Bank.  If M&T Bank fails to make the payment specified in Section 3.1 (Payment by M&T Bank) above in the time specified, such failure will constitute a material breach of this Agreement.  Upon such breach, LML may then, after five (5) business days following written notice of such breach to M&T Bank, if M&T Bank does not deliver the payment specified in Section 3.1 (Payment by M&T Bank) to LML within five (5) business days after receiving such notice from LML, at its option, either terminate the Agreement or it may petition the Court for specific enforcement of M&T Bank's payment obligations.  M&T Bank hereby consents to the jurisdiction of the Court for enforcement of the payment obligations in Section 3.1 (Payment by M&T Bank), and agrees that specific enforcement of the payment obligations of this Agreement is an available remedy.

	
3.4.  

	
Tax Liability.  Each Party shall bear its own tax liability as a result of the existence of this Agreement or the performance of any obligations hereunder.

	
3.5.  

	
Additional Payments.  Subject to the provisions of Section 6 (Change in Control/Acquisitions), the payment of the amount set forth in Section 3.1 (Payment by M&T Bank) shall be the total compensation to any LML Entity by any M&T Bank Entity or Covered Third Party for all releases, licenses, covenants and all other rights granted in this Agreement, and no additional payment shall be due or made to any LML Entity or any other Entity by any M&T Bank Entity or Covered Third Party with respect to the releases, licenses, covenants and all other rights granted in this Agreement.

 

 

  

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3.6.  

	
M&T Bank's Retained Rights / Bankruptcy.  The Parties acknowledge and agree that the LML Patents are "intellectual property" as defined in Section 101(35A) of the United States Bankruptcy Code, as the same may be amended from time to time (the "Code"), which have been licensed hereunder in a contemporaneous exchange for value.  The Parties further acknowledge and agree that if LML:  (i) becomes insolvent or generally fails to pay, or admits in writing its inability to pay, its debts as they become due; (ii) applies for or consents to the appointment of a trustee, receiver or other custodian for it, or makes a general assignment for the benefit of its creditors; (iii) commences, or has commenced against it, any bankruptcy, reorganization, debt arrangement, or other case or proceeding under any bankruptcy or insolvency law, or any dissolution or liquidation proceedings; or (iv) elects to reject, or a trustee on behalf of it elects to reject, this Agreement or any agreement supplementary hereto, pursuant to Section 365 of the Code ("365"), or if this Agreement or any agreement supplementary hereto is deemed to be rejected pursuant to 365 for any reason, this Agreement, and any agreement supplementary hereto, shall be governed by Section 365(n) of the Code ("365(n)") and M&T Bank Entities will retain and may elect to fully exercise its or their rights under this Agreement in accordance with 365(n).

	
4.  

	
RELEASES AND COVENANTS NOT TO SUE

	
4.1.  

	
Agreement Obligations Not Released.  None of the releases or covenants not to sue herein releases any Party or its Affiliates from its respective obligations under this Agreement or under any protective orders entered in the Litigation I as of the Effective Date or prevents any Party or any of its Affiliates from enforcing the terms and conditions of this Agreement against the other Party or its Affiliates.

 

 

  

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4.2.  

	
LML's Release to M&T Bank.  Subject to the provisions of Section 3.3 (Termination Due to Non-Payment by M&T Bank) and Section 6 (Change in Control/Acquisitions), LML Entities forever release:  (a) the M&T Bank Entities from any and all claims, causes of action, actions, demands, liabilities, losses, damages, attorneys' fees, court costs, or any other form of claim or compensation, whether known or unknown, whether in law or equity, accruing, existing or arising before or on the Effective Date, related in whole or part to Litigation I, any of the LML Patents, or Exploitation of the Covered Products and Services, including without limitation any act of past or present Infringement, misappropriation or other violation of one or more of the LML Patents, and any claim that is or would have been within the scope of either the covenant not to sue or license granted in Sections 4.4 (Covenant-Not-To-Sue by LML Entities) and 5.1 (License), and any claim that the LML Entities asserted or could have asserted in Litigation I as of the Effective Date; and (b) the Covered Third Parties from any and all claims, causes of action, actions, demands, liabilities, losses, damages, attorneys' fees, court costs, or any other form of claim or compensation, whether known or unknown, whether in law or equity, accruing, existing or arising before or on the Effective Date, related in whole or part to Litigation I, any of the LML Patents, or Exploitation of the Covered Products and Services, including without limitation any act of past or present Infringement, misappropriation or other violation of one or more of the LML Patents, and any claim that is or would have been within the scope of either the covenant not to sue or license granted in Sections 4.4 (Covenant-Not-To-Sue by LML Entities) and 5.1 (License), and any claim that the LML Entities asserted or could have asserted in Litigation I as of the Effective Date.

	
4.3.  

	
M&T Bank's Release to LML.  Subject to the obligations of LML under this Agreement, M&T Bank Entities forever release LML Entities from any claims, causes of action, actions, demands, liabilities, losses, damages, attorneys' fees, court costs, or any other form of claim or compensation, whether known or unknown, whether in law or equity, accruing, existing or arising before or on the Effective Date, related in whole or part to Litigation I or any of the LML Patents (conserving, subject to Section 2.3, defenses or claims regarding the validity or enforceability of one or more of the LML Patents) that is or would have been within the scope of the covenant not to sue granted in Section 4.5 (Covenant-Not-To-Sue by M&T Bank Entities) and that the M&T Bank Entities asserted or could have asserted as of the Effective Date.

 

 

  

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4.4.  

	
Covenant-Not-To-Sue by LML Entities.  Subject to the provisions of Section 3.3 (Termination Due to Non-Payment by M&T Bank) and Section 6 (Change in Control/Acquisitions), the LML Entities, on behalf of themselves and their respective successors and permitted assigns, agree that:  (a) they will not assert, pursue, maintain, encourage, support, assist, or join in any action or litigation asserting any claim against any M&T Bank Entity for Infringement of any claim of the LML Patents with respect to or arising out of the Exploitation of any Covered Products or Services; and (b) they will not assert, pursue, maintain, encourage, support, assist, or join in any action or litigation asserting any claim against any Covered Third Parties for Infringement of any claim of the LML Patents with respect to or arising out of the Exploitation of any Covered Products and Services.

	
4.5.  

	
Covenant-Not-To-Sue by M&T Bank Entities.  Subject to the obligations of LML under this Agreement, the M&T Bank Entities, on behalf of themselves and their respective successors and permitted assigns, agree that they will not assert, pursue, maintain, encourage, support, assist, or join in any action or litigation asserting any claim against any LML Entity in the future for any claims related to or arising out of the LML Patents, unless any claims of Infringement with respect to the LML Patents are asserted against any M&T Bank Entity or its successors or assigns or any Covered Third Party.

	
5.  

	
GRANT OF LICENSE

	
5.1.  

	
License.  Subject to the provisions of Section 3.3 (Termination Due to Non-Payment by M&T Bank) and Section 6 (Change in Control/Acquisitions), LML hereby grants to the M&T Bank Entities and Covered Third Parties a fully paid-up, irrevocable, non­exclusive, world-wide, royalty free license under the LML Patents to Exploit the Covered Products and Services throughout the world.  This license attaches to and is transferred with each Covered Product and Service and passes to each and every Covered Third Party with regard to such Covered Product and Service.  This license is retroactive to the earliest priority date of the LML Patents.

	
5.2.  

	
Disclaimer of Infringement and Validity.  Nothing herein shall be construed as an admission by any M&T Bank Entity:  (a) that the LML Patents have been or are being Infringed; or (b) that the LML Patents are valid or enforceable.

 

 

  

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6.  

	
CHANGE IN CONTROL / ACQUISITIONS

	
6.1.  

	
Acquisitions by a M&T Bank Entity.  In the event any M&T Bank Entity Acquires an Excluded Party or any business line of an Excluded Party that provides Infringing Products and Services after the Effective Date of this Agreement (hereinafter referred to as "Acquired Entity"), then all the rights of such M&T Bank Entity under the license grant, covenant not to sue, and releases in this Agreement shall continue for such M&T Bank Entity, and the Acquired Entity and any of its Non-Covered Affiliates will gain the benefit of the license grant, covenant-not-to-sue, or releases in this Agreement (subject to the provisions in the immediately following sentence).  However, the license grant, covenant not to sue, and releases in this Agreement will not apply to those ACH Transactions created, processed or transmitted by the Acquired Entity and/or by any Non-Covered Affiliates of the Acquired Entity each month after the date of the acquisition that go beyond 125% of the M&T Bank Entities' average monthly ACH Transaction volumes for Covered Products and Services based on the 12 months preceding the date of the Acquisition (hereinafter, "Acquired Volume Limit").  If the collective number of ACH Transactions created, processed or transmitted by the Acquired Entity and/or by any Non-Covered Affiliates of the Acquired Entity in any given month after the date of the Acquisition exceeds the Acquired Volume Limit, the ACH Transactions exceeding the Acquired Volume Limit shall not be covered under the license grant, covenant not to sue or releases in this Agreement (hereinafter, "Section 6.1 Non-Covered ACH Transactions").  Upon the M&T Bank Entity's or Acquired Entity’s request, LML agrees to negotiate in good faith with the M&T Bank Entity or the Acquired Entity to release and license and grant a covenant not to sue, under the LML Patents, any Section 6.1 Non-Covered ACH Transactions created, processed, or transmitted by the Acquired Entity and any of its Non-Covered Affiliates.  If LML and the M&T Bank Entity or the Acquired Entity cannot reach agreement on the terms of such release and/or license, then LML, the Acquired Entity (and the M&T Bank Entities), and any Non-Covered Affiliates of the Acquired Entity shall have all remedies, defenses, and counterclaims available to them under applicable law with respect to any Section 6.1 Non-Covered ACH Transactions.  The foregoing provisions of this Section 6.1 shall not apply for the benefit of an Excluded Party that is, as of the Effective Date, a defendant in the Lawsuits.

 

 

 

  

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6.2.  

	
Acquisitions of a M&T Bank Entity.  In the event an Excluded Party Acquires any M&T Bank Entity and maintains the M&T Bank Entity as a separate legal entity after the acquisition or merges or is otherwise combined with such M&T Bank Entity (such Excluded Party and the Acquired M&T Bank Entity after such Acquisition hereinafter referred to as the "Acquiring Entity"), then all the rights of such Acquired M&T Bank Entity under the license grant, covenant not to sue, and releases in this Agreement shall continue for such Acquired M&T Bank Entity and may be extended by such Acquired M&T Bank Entity to all of the Acquiring Entity and all Non-Covered Affiliates (subject to the provisions in the immediately following sentence) and will continue to apply with respect to any Exploitation of the Covered Products and Services that occurred prior to the date of the Acquisition and was covered under the license grant, covenant not to sue, and releases in this Agreement.  However, the license grant, covenant not to sue, and releases in this Agreement will not apply to those ACH Transactions created, processed or transmitted by the Acquiring Entity (including such acquired M&T Bank Entity), and/or by any Non-Covered Affiliates of the Acquiring Entity each month after the date of the acquisition that go beyond 125% of the M&T Bank Entities' average monthly ACH Transaction volumes for Covered Products and Services based on the 12 months preceding the date of the acquisition (hereinafter, "Acquisition Volume Limit").  If the collective number of ACH Transactions created, processed or transmitted by the Acquiring Entity (including the acquired M&T Bank Entity) and/or by any Non-Covered Affiliates of the Acquiring Entity in any given month after the date of the Acquisition exceeds the Acquisition Volume Limit, the Acquiring Entity agrees to notify LML of same within sixty (60) days of such occurrence, and the ACH Transactions exceeding the Acquisition Volume Limit shall not be covered under the license grant, covenant not to sue or releases in this Agreement (hereinafter, "Section 6.2 Non-Covered ACH Transactions").  If the Acquiring Entity provides the notice as specified above within the timeframe specified above, LML agrees to negotiate in good faith with the Acquiring Entity to release and/or license, under the LML Patents, any Section 6.2 Non-Covered ACH Transactions.  If the Acquiring Entity does not provide the notice as specified above and/or if LML and the Acquiring Entity cannot reach agreement on the terms of such release and/or license, then LML, the Acquiring Entity (including the acquired M&T Bank Entities), and any Non-Covered Affiliates of the Acquiring Entity shall have all remedies, defenses, and counterclaims available to them under applicable law with respect to any Section 6.2 Non-Covered ACH Transactions.

 

 

 

  

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6.3.  

	
Transfer of Covered Assets of a M&T Bank Entity.  In the event of a sale or other transfer of assets of any M&T Bank Entity, which includes a product or business line that provides Covered Products and Services, to an Excluded Party (hereinafter referred to as the "Covered Transferee Entity"), then the license grant, covenant not to sue, and releases in this Agreement may be extended by such M&T Bank Entity to the Covered Transferee Entity and all Non-Covered Affiliates and shall continue to apply with respect to any Exploitation of the Covered Products and Services that occurred prior to the date of the sale or transfer and was covered under the license grant, covenant not to sue, and releases in this Agreement.  However, the license grant, covenant not to sue, and releases in this Agreement will not apply to those ACH Transactions created, processed or transmitted by the Covered Transferee Entity (including the product or business line acquired from such M&T Bank Entity) and/or any Non-Covered Affiliates of the Covered Transferee Entity each month after the date of the purchase that go beyond 125% of the M&T Bank Entities' average monthly ACH Transaction volumes for Covered Products and Services based on the 12 months preceding the date of the sale or other transfer (hereinafter, "Covered Transferee Volume Limit").  If the collective number of ACH Transactions created, processed or transmitted by the Covered Transferee Entity (including the product or business line acquired from such M&T Bank Entity) and/or by any Non­Covered Affiliates of the Covered Transferee Entity in any given month after the date of the purchase exceeds the Covered Transferee Volume Limit, the Covered Transferee Entity agrees to notify LML of same within sixty (60) days of such occurrence, and the ACH Transactions exceeding the Covered Transferee Volume Limit shall not be covered under the license grant, covenant not to sue or releases in this Agreement (hereinafter, "Section 6.3 Non-Covered ACH Transactions").  If the Covered Transferee Entity provides the notice as specified above within the timeframe specified above, LML agrees to negotiate in good faith with the Covered Transferee Entity to release and/or license, under the LML Patents, any Section 6.3 Non-Covered ACH Transactions.  If the Covered Transferee Entity does not provide the notice as specified above and/or if LML and the Covered Transferee Entity cannot reach agreement on the terms of such release and/or license, then LML, the Covered Transferee Entity (including the M&T Bank Entities), and any Non -Covered Affiliates of the Covered Transferee Entity shall have all remedies, defenses, and counterclaims available to them under applicable law with respect to any Section 6.3 Non-Covered ACH Transactions.

 

 

 

  

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6.4.  

	
Transfer of Non-Covered Assets of a M&T Bank Entity.  In the event of a sale or other transfer of assets of any M&T Bank Entity, which does not include any part of a product or business line that provides the Covered Products and Services, to an Excluded Party (hereinafter referred to as the "Non-Covered Transferee Entity"), then neither the Non­Covered Transferee Entity nor any of its Non-Covered Affiliates will gain the benefit of the license grant, covenant-not-to-sue, or releases in this Agreement.  Upon the Non­Covered Transferee Entity's request, LML agrees to negotiate in good faith with the Non-Covered Transferee Entity to release and/or license, under the LML Patents, any ACH Transactions created, processed, or transmitted by the Non-Covered Transferee Entity and/or any of its Non-Covered Affiliates (hereinafter "Section 6.4 Non-Covered ACH Transactions").  If LML and the Non-Covered Transferee Entity cannot reach agreement on the terms of such release and/or license, then LML, the Non-Covered Transferee Entity, and any Non-Covered Affiliates of the Non-Covered Transferee Entity shall have all remedies, defenses, and counterclaims available to them under applicable law with respect to any Section 6.4 Non-Covered ACH Transactions.

	
6.5.  

	
Termination of Payments Due Pursuant to Section 6.  With respect to any good faith negotiations undertaken pursuant to Sections 6.1 (Acquisitions by a M&T Bank Entity) through Section 6.4 (Transfer of Non-Covered Assets By a M&T Bank Entity) above, LML agrees that no royalty will be due as to an LML Patent for any ACH Transactions created, processed, or transmitted by the M&T Bank Entity, by any Acquired Entity, Acquiring Entity, Covered Transferee Entity or Non-Covered Transferee Entity (as defined above), or by any Non-Covered Affiliates of any Acquired Entity, Acquiring Entity, Covered Transferee Entity or Non-Covered Transferee Entity after the expiration date of such LML Patent or its final legal adjudication of invalidity or unenforceability after all appeals are exhausted.

	
6.6.  

	
Other.   The provisions of Sections 6.1 through 6.5 shall not apply in the event of an Acquisition of or by a non-Excluded Party or assets or a product or business line of or by a non-Excluded Party, in which case the license, release, and covenant not to sue under this Agreement shall fully extend to and benefit such non-Excluded Party, assets, and product or business line.  The provisions of Section 6.1 through 6.5 shall not affect any M&T Bank Entity, and none of the assets, products and business of such M&T Bank Entity, that are not Acquiring or being Acquired under Sections 6.1, 6.2, 6.3, or 6.4.

 

 

  

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7.  

	
CONFIDENTIALITY.  The Parties may disclose the existence of this Agreement.  Neither Party may disclose the specific terms and conditions of this Agreement to any Entity except that each Party may disclose the terms and conditions of this Agreement:  (i) in response to a valid subpoena or as otherwise may be required by law, regulation, or order of a court or governmental authority of competent jurisdiction, provided that the Party required to make such a disclosure gives as much notice as is reasonably possible to the other Party to contest such order or requirement and takes all reasonable actions in an effort to minimize the nature and extent of such disclosure; (ii) on a confidential basis to its legal, accounting or financial advisors solely for the purposes of providing such advice and solely to the extent that they have a need for access; (iii) if that Party forms a good faith belief that disclosure is required under applicable securities regulations or listing agency requirements, including for the purpose of disclosure in connection with the Securities and Exchange Act of 1934, as amended, the Securities Act of 1933, as amended, National Instrument NI 51-102 (under Canadian law), as amended, and any other reports filed with the Securities and Exchange Commission, or any other filings, reports or disclosures that may be required under applicable laws or regulations; (iv) in its financial statements as it is required to do under applicable generally accepted accounting principles while acting in reliance on its auditors; (v) to any defendant as part of its disclosure obligations subject to the Court's Protective Order in the applicable litigation brought by LML to enforce an LML Patent, in which event LML will seek to have the production protected under an "Outside Counsel Attorneys Eyes Only" or higher confidentiality designation and LML will take all reasonable actions in an effort to minimize the nature and extent of such disclosure; (vi) upon the express written consent of the other Party; (vii) on a confidential basis to investors and potential investors and acquirers, but subject to any such investor or potential investor or acquirer having first executed an appropriate non-disclosure agreement requiring such investor or potential investor or acquirer to maintain this Agreement and the terms and conditions of this Agreement in confidence; or (viii) as necessary to pursue an indemnification claim from a potential or actual indemnitor or defend against an indemnification claim from a potential or actual indemnitee, subject to obligations of confidentiality and privilege at least as stringent as those contained herein; and (ix) to a Covered Third Party or prospective Covered Third Party, or any contractor of an M&T Bank Entity, subject to obligations of confidentiality and privilege at least as stringent as those contained herein.

 

	
8.  

	
REPRESENTATIONS AND WARRANTIES

	
8.1.  

	
M&T Bank Representations and Warranties.  M&T Bank represents and warrants to LML that it has all requisite legal right, power and authority to enter into, execute, deliver and perform this Agreement and grant the releases, covenants not to sue and all other rights provided for under this Agreement.

 

 

  

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8.2.  

	
LML Representations and Warranties.  As a condition precedent to M&T Bank entering into this Agreement, LML represents and warrants to M&T Bank that as of the Effective Date:  (a) LML has all requisite legal right, power and authority to enter into, execute, deliver and perform this Agreement and grant the licenses, releases, covenants not to sue and all other rights provided for under this Agreement; (b) LML owns the entire right, title, and interest in and to the LML Patents and the inventions disclosed and claimed therein, including all rights to recover for alleged Infringement of the LML Patents by the M&T Bank Entities; (c) the LML Entities have not granted and shall not grant any licenses or other rights, under the LML Patents or the claims or counterclaims asserted in the Litigation I or otherwise, that would conflict with or prevent the licenses and rights granted to M&T Bank Entities or Covered Third Parties hereunder; (d) there are no liens, conveyances, mortgages, assignments, encumbrances, or other agreements that would prevent or impair the full and complete exercise of the terms and conditions of this Agreement; (e) the LML Entities have not entered into, and shall not enter into, any other agreement that would interfere with the obligations and immunities set forth in this Agreement during the term of this Agreement; (f) as of the Effective Date, neither LML nor any Affiliate of LML owns or controls (or has the right to own or control) any patent or patent application, or is considering filing any patent application, with subject matter related to any LML Patent that is not an LML Patent; and (g) LML will not transfer, assign, or exclusively license to another any of the LML Patents or claims/demands that LML asserted (or could have asserted) against the M&T Bank Entities relating to the LML Patents or the Litigation I, unless the transferee, assignee, or exclusive licensee agrees to be bound by all of the terms and conditions of this Agreement.

	
8.3.  

	
Limitations on Representations and Warranties.  Nothing contained in this Agreement shall be construed as: (a) a warranty or representation by either Party that any manufacture, sale, use, or other disposition of products by the other Party has been or will be free from Infringement of any patents other than the LML Patents; (b) an agreement by either Party to bring or prosecute actions or suits against any Entity for Infringement, or conferring any right to the other Party to bring or prosecute actions or suits against third parties for Infringement; (c) conferring any right to either Party to use in advertising, publicity, or otherwise, any trademark, service mark, or trade dress of the other Party, or any simulation thereof, without the prior written consent of the other Party; (d) conferring any right to either Party, except as otherwise provided in Section 7 (Confidentiality), to use any names or trade names of the other Party, or any simulation thereof, without the prior written consent of the other Party; (e) an obligation to furnish any technical information or know-how; or (f) conferring by implication, estoppel or otherwise, upon either Party, any right (including a license) under patents other than the LML Patents except for the rights expressly granted hereunder.

 

 

 

  

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8.4.  

	
DISCLAIMER OF WARRANTIES.  EXCEPT FOR THE EXPRESS WARRANTIES SET FORTH IN THIS AGREEMENT, THE PARTIES MAKE NO EXPRESS REPRESENTATIONS AND GRANT NO WARRANTIES, EXPRESS OR IMPLIED, EITHER IN FACT OR BY OPERATION OF LAW, BY STATUE OR OTHERWISE.

	
8.5.  

	
No Joint and Several Liability.  Notwithstanding anything herein to the contrary, the M&T Bank Entities and the Covered Third Parties shall not have any liability to any of the LML Entities for any actions or inactions of another defendant in the Lawsuits, or any other Entity against whom any of the LML Entities has asserted or may assert a claim for Infringement of a LML Patent.

	
9.  

	
GENERAL PROVISIONS

	
9.1.  

	
Assignment.  Except as otherwise provided in Section 6, this Agreement may not be assigned by either Party without the prior written consent of the other Party in its sole discretion. Absent such written consent from M&T Bank, LML shall not assign, or grant any right to enforce any LML Patent, or any right that would conflict with the rights granted hereunder, to any Entity unless such assignment or grant is subject to all of the terms and conditions of this Agreement, and such Entity executes an agreement agreeing to be bound by all of the terms and conditions of this Agreement including a requirement to bind all further successors-in-interest or assigns thereof to the terms and conditions of this Agreement. All releases, licenses, and covenants contained herein shall run with the LML Patents and shall be binding on any successors-in-interest or assigns thereof. Any attempted assignment or grant in contravention to this Section shall be null and void.

	
9.2.  

	
Entire Agreement.  This Agreement, including all Exhibits attached hereto, constitutes the entire agreement between the Parties and embodies the entire and only understanding of each of them with respect to the subject matter of the Agreement, and merges, cancels and supersedes all prior representations, warranties, assurances, conditions, definitions, understandings and all other statements or agreements, whether express, implied, or arising out of operation of law, whether oral or written, whether by omission or commission, between and among the Parties hereto with respect to the subject matter of the Agreement. There are no representations, warranties, terms, conditions, undertakings or collateral agreements, express, implied or statutory, between the Parties other than as expressly set forth in this Agreement.

 

 

  

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9.3.  

	
Notices.  All notices, requests, approvals, consents and other communications required or permitted under this Agreement will be in writing and addressed as follows:

 

If to LML:

Mr. Patrick H. Gaines

President

LML Patent Corp

505 East Travis St.

Suite 216

Marshall, TX 75670

with a copy to:

LML Patent Corp.

Corporate Secretary

1680-1140 West Pender Street

Vancouver, BC, Canada V6E 4G1

If to M&T Bank:

Attn:  Intellectual Property Attorney

M&T Bank legal Department

One M&T Plaza, 12th Floor

Buffalo,  NY   14203

with a copy to:

Attn:  Litigation Management Attorney

M&T Bank Legal Department

One M&T Plaza,  12th Floor

Buffalo,  NY  14203

and will be deemed delivered: (a) upon receipt if delivered by hand; (b) the next day if sent by prepaid, U.S. recognized, overnight air courier; (c) three (3) business days after being sent by registered or certified mail (return receipt requested, postage prepaid); or if by facsimile, the day that the sender receives an acknowledgement that the facsimile was successfully transmitted. All notices shall be addressed to the other Party at the address set forth above or to such other person or address as the Parties may from time to time designate in writing delivered pursuant to this notice provision.

	
9.4.  

	
Governing Law.  This Agreement and all matters connected with the performance thereof shall be governed by and will be construed, interpreted, and applied in accordance with the laws of the State of Texas and the federal laws of the United States as applicable therein, without regard to the laws of those jurisdictions governing conflicts of laws.

 

 

  

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9.5.  

	
Expenses.  Except as otherwise specifically provided in this Agreement, the Parties agree that they shall bear their own costs and attorneys' fees incurred in connection with the negotiation and drafting of this Agreement and the transactions contemplated herein.

	
9.6.  

	
Headings.  The section and sub-section headings contained in this Agreement are for convenience of reference only and shall not serve to limit, expand or interpret the sections or sub-sections to which they apply, and shall not be deemed to be a part of this Agreement.

	
9.7.  

	
Interpretation; Construction.  The Parties have participated jointly in the negotiation and drafting of this Agreement. In the event an ambiguity or question of intent or interpretation arises, this Agreement shall be construed as if jointly drafted by the Parties and no presumption or burden of proof shall arise favoring or disfavoring either Party by virtue of the authorship of any provision of this Agreement. This Agreement is in the English language only, which language shall be controlling in all respects, and all notices under this Agreement shall be in the English language. For purposes of construction, the singular includes the plural and vice versa.

	
9.8.  

	
Relationship of the Parties.  This Agreement does not constitute and shall not be construed as constituting a partnership, agency, employer-employee, or joint venture between LML and M&T Bank, and neither Party shall have any right to incur any debt, make any commitment for each other, or obligate or bind the other Party in any manner whatsoever, and nothing herein contained shall give or is intended to give any rights of any kind to any third persons, except as expressly provided herein. LML and M&T Bank each expressly disclaim any reliance on any act, word, or deed of the other in entering into this Agreement.

	
9.9.  

	
Binding Effect.  Subject to the provisions of Section 6 (Change in Control/Acquisitions), this Agreement shall be binding upon, inure to the benefit of, and be enforceable by the Parties, their predecessors, and successors and permitted assigns.

	
9.10.  

	
Enforceability.  The Parties acknowledge and agree that this Agreement is enforceable according to its terms.

	
9.11.  

	
Severability.  In the event that any term or provision of this Agreement is deemed illegal, invalid, unenforceable or void by a final, non-appealable judgment of a court or tribunal of competent jurisdiction under any applicable statute or rule of law, such court or tribunal is authorized to modify such provision to the minimum extent possible to effect the overall intention of the Parties as of the Effective Date of this Agreement. The Parties agree to negotiate in good faith to try and substitute an enforceable provision for any invalid or unenforceable provision that most nearly achieves the intent of such provisions.

 

 

  

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9.12.  

	
Releases; Waiver of Section 1542 of the California Civil Code.  To the extent that the releases in Section 4.2 (LML's Release to M&T Bank) and Section 4.3 (M&T Bank's Release to LML) are releases to which Section 1542 of the California Civil Code (or similar provisions of other applicable law) applies, it is the intention of the Parties that the releases in Section 4.2 (LML's Release to M&T Bank) and Section 4.3 (M&T Bank's Release to LML) shall be effective as a bar to any and all actions, fees, damages, losses, claims, liabilities and demands of whatsoever character, nature and kind, known or unknown, suspected or unsuspected, as specified therein. In furtherance of this intention, the Parties expressly waive any and all rights and benefits conferred upon them by the provisions of Section 1542 of the California Civil Code (or similar provisions of applicable law), which provides that: "A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM OR HER MUST HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR."

	
9.13.  

	
Counterparts.  This Agreement may be executed in two or more counterparts or duplicate originals, each of which shall be considered one and the same instrument, and which shall be the official and governing version in interpretation of this Agreement. This Agreement may be executed by facsimile signatures and such signatures shall be deemed to bind each Party as if they were original signatures.

	
9.14.  

	
Waiver.  No waiver of any breach of any provision of this Agreement shall be construed as a waiver of or consent to any previous or subsequent breach of the same or any other provision.

	
9.15.  

	
Force Majeure.  The failure of a Party hereunder to perform any obligations, due to governmental action, law or regulation, or due to events, such as war, act of public enemy, strikes or other labor disputes, fire, flood, acts of God, or any similar cause beyond the reasonable control of such Party, is excused for as long as said cause continues to exist. The Party prevented from performing shall promptly notify the other Party of such non-performance and its expected duration, and shall use all reasonable efforts to overcome the cause thereof as soon as practicable.

	
9.16.  

	
Amendment.  This Agreement may not be amended or modified, except by a writing signed by all Parties.

 

 

  

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9.17.  

	
Sophisticated Parties Represented by Counsel.  The Parties each acknowledge, accept, warrant, and represent that: (i) they are sophisticated Entities represented at all relevant times during the negotiation and execution of this Agreement by counsel of their choice, and that they have executed this Agreement with the consent and on the advice of such independent legal counsel; and (ii) they and their counsel have determined through independent investigation and arm's-length negotiation that the terms of this Agreement shall exclusively embody and govern the subject matter of this Agreement.

 

IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed by their duly authorized officers as of the Effective Date.

	
LML Patent Corp.

	  	
M&T Bank

	  	  	  
	
By:/s/ Patrick H. Gaines

	  	
By:/s/ Arthur J. Bronson

	  	  	  
	
Name: Patrick H. Gaines

	  	
Name: Arthur J. Bronson

	  	  	  
	
Title: President

	  	
Title: Group Vice President

	  	  	  
	
Date: September 22, 2010

	  	
Date: September 22, 2010

  

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EXHIBIT A

M&T BANK ENTITIES

M&T Bank Corporation

Allfirst Preferred Asset Trust

Allfirst Preferred Capital Trust

BSB Capital Trust I

BSB Capital Trust II

First Empire State Corporation

First Empire State Holding Company

Manufacturers and Traders Trust Company (“M&T Bank”)

BSB Mortgage Corporation

Chesapeake Holdings RE, LLC

Chesapeake Holdings BB MB, LLC

Chesapeake Holdings Beck Estates, LLC

Chesapeake Holdings Belmont LLC

Chesapeake Holdings Creekview, LLC

Chesapeake Holdings Double, LLC

Chesapeake Holdings East, LLC

Chesapeake Holdings Forrest, LLC

Chesapeake Holdings HO, LLC

Chesapeake Holdings Landmark, LLC

Chesapeake Holdings Littleton, LLC

Chesapeake Holdings Logan, LLC

Chesapeake Holdings MAC, LLC

Chesapeake Holdings 9W, LLC

Chesapeake Holdings NC1, LLC

Chesapeake Holdings OR WASH, LLC

Chesapeake Holdings Orangeburg, LLC

Chesapeake Holdings Research, LLC

Chesapeake Holdings SK, LLC

Chesapeake Holdings Sequoia, LLC

Chesapeake Holdings Shoppes, LLC

Chesapeake Holdings Springbrook, LLC

Chesapeake Holdings Trillium, LLC

Chesapeake Holdings West, LLC

LPM Sub 1, Inc.

LPM Sub 2, Inc.

LPM Sub 3, Inc.

LPM Sub 4, Inc.

LPM Sub 5, Inc.

First Manufactured Housing Credit Corporation

First Maryland Commercial Holdings Corporation

First Maryland Real Estate Corporation

GP Service Corporation

Groupinsure Brokerage Holding, Inc.

Lafayette Settlement Services, Inc.

 

 

 

  

-1-

  

 

 

M&T Bank Affordable Housing Fund, L.P.

M&T Bank Affordable Housing Fund II, LLLP

M&T Conduit Corporation

M&T Financial Corporation

M&T Insurance Agency, Inc.

RCS Consulting Group, L.L.C.

M&T Lease, LLC

M&T Mortgage Reinsurance Company, Inc.

M&T Pennsylvania Services Corporation

M&T Real Estate Trust

M&T Realty Capital Corporation

M&T Securities Inc.

M&T Trust Company of Delaware

MAT Properties, Inc.

MTB Investment Advisors, Inc.

115 E. Putnam Avenue, Inc.

1105-1141 Broadway Corp.

165-195 Attica Apartments, Inc.

13-18 Redfield Ave. Corp.

PB Investment Holdings LLC

Partners NEWPRO, Inc.

Premier National Investment Company, Inc.

3364 Bailey Avenue, Inc.

233 Genesee Street Corporation

7820 Route 11, Inc.

WMATA 1998-1stM-B4 Trust

Zirkin-Cutler Investments, Inc.

First Maryland Capital I

First Maryland Capital II

Keystone Financial Mid-Atlantic Funding Corp.

M&T Bank, National Association

M&T Capital Trust I

M&T Capital Trust II

M&T Capital Trust III

M&T Capital Trust IV

M&T Life Insurance Company                                                      Provident Trust I

Provident Statutory Trust III

Southern Financial Capital Trust III

Southern Financial Statutory Trust I

  

-2-

  

EXHIBIT B

STIPULATED DISMISSAL WITH PREJUDICE

and

ORDER OF DISMISSAL WITH PREJUDICE

(see attached)

  

  

  

IN THE UNITED STATES DISTRICT COURT

FOR THE EASTERN DISTRICT OF TEXAS

MARSHALL DIVISION

	
LML PATENT CORP,

	
§

	  
	  	
§

	  
	
PLAINTIFF

	
§

	  
	  	
§

	  
	
v.

	
§

	
CIVIL ACTION NO. 2:08-CV-448-DF

	  	
§

	  
	  	
§

	
JURY

	
JP MORGAN CHASE & CO., ET AL.,

	
§

	  
	  	
§

	  
	
DEFENDANTS

	
§

	  

STIPULATED DISMISSAL WITH PREJUDICE

Pursuant to Rule 41(a) of the Federal Rules of Civil Procedure and the terms of a separate Settlement and License Agreement, the Plaintiff, LML Patent Corp and Defendant M&T Bank, have agreed to settle, adjust, and compromise all claims and counterclaims against each other in the above-captioned action. The parties, therefore, stipulate to dismiss all claims by LML Patent Corp against M&T Bank and all counterclaims by M&T Bank against LML Patent Corp made therein with prejudice to the re-filing of same, subject to the terms of the Settlement and License Agreement between the parties.

LML Patent Corp. and M&T Bank further stipulate that all costs and expenses relating to this litigation (including, but not limited to, attorneys' fees and expert fees and expenses) shall be borne solely by the party incurring the same.

A proposed Order accompanies this motion.

AGREED:

  

-1-

  

	
Date: ______________, 2010

	  	
Respectfully submitted,

	  	  	  
	  	  	
By: /s/                                                      

	  	  	
[INSERT INFO]

	  	  	  
	  	  	
ATTORNEYS FOR DEFENDANT

M&T BANK

	  	  	  
	  	  	
and

	  	  	  
	  	  	
/s/ Melissa Smith

	  	  	
Melissa Smith

	  	  	
Texas State Bar No. 00794818

	  	  	
GILLAM & SMITH, LLP

	  	  	
303 South Washington

	  	  	
Marshall, Texas 75670

	  	  	
Telephone: 903-934-8450

	  	  	
Facsimile: 903-934-9257

	  	  	
Melissa@gillamsmithlaw.com

	  	  	  
	  	  	
Theodore Stevenson, III

	  	  	
Lead Attorney

	  	  	
Texas Bar No. 19196650

	  	  	
tstevensom@mckoolsmith.com

	  	  	
John Austin Curry

	  	  	
Texas State Bar No. 24059636

	  	  	
acurry@mckoolsmith.com

	  	  	
McKool Smith, P.C.

	  	  	
300 Crescent Court, Suite 1500

	  	  	
Dallas, Texas 75201

	  	  	
Telephone: 214-978-4974

	  	  	
Facsimile: 214-978-4044

	  	  	  
	  	  	
Sam F. Baxter

	  	  	
Texas Bar No. 01938000

	  	  	
sbaxter@mckoolsmith.com

	  	  	
McKOOL SMITH, P.C.

	  	  	
505 East Travis Street, Suite 105

	  	  	
Marshall, TX 75670

	  	  	
Telephone: 903-927-2111

	  	  	
Facsimile: 903-927-2622

	  	  	  
	  	  	
Michael S. Perez

	  	  	
Texas Bar No. 24002752

	  	  	
mperez@mckoolsmith.com

	  	  	
Daniel W. Sharp

	  	  	
Texas Bar NO. 24041902

	  	  	
dsharp@mckoolsmith.com

	  	  	
John Garvish

	  	  	
Texas State Bar No. 24043681

	  	  	
jgarvish@mckoolsmith.com

	  	  	
McKool Smith, P.C.

	  	  	
300 W. 6th Street, Suite 1700

	  	  	
Austin, Texas  78701

	  	  	
Telephone: 512-692-8725

	  	  	
Facsimile: 512-692-8744

	  	  	  
	  	  	
ATTORNEYS FOR PLAINTIFF LML PATENT CORP.

  

-2-

  

IN THE UNITED STATES DISTRICT COURT

FOR THE EASTERN DISTRICT OF TEXAS

MARSHALL DIVISION

	
LML PATENT CORP,

	
§

	  
	  	
§

	  
	
PLAINTIFF

	
§

	  
	  	
§

	  
	
v.

	
§

	
CIVIL ACTION NO. 2:08-CV-448-DF

	  	
§

	  
	  	
§

	
JURY

	
JP MORGAN CHASE & CO., ET AL.,

	
§

	  
	  	
§

	  
	
DEFENDANTS

	
§

	  

ORDER OF DISMISSAL WITH PREJUDICE

The Court is of the opinion that the Stipulated Dismissal with Prejudice agreed to by LML Patent Corp and M&T Bank should be GRANTED.

IT IS THEREFORE ORDERED that the above-entitled cause and all claims made by LML Patent Corp against M&T Bank and all counterclaims made by M&T Bank against LML Patent Corp therein are hereby DISMISSED WITH PREJUDICE to the re-filing of same, subject to the terms of the Settlement and License Agreement between the parties. All costs and expenses relating to this litigation (including, but not limited to, attorneys' fees and expert fees and expenses) shall be borne solely by the party incurring the same.

IT IS FURTHER ORDERED that this Court shall retain jurisdiction over this action and the parties for purposes of enforcing the terms of the Settlement and License Agreement entered into by and between the parties.

This is a final judgment.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00181-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00181-of-00352.parquet"}]]