Document:

<PAGE>

                                                                    Exhibit 10.2

EXECUTION COPY

                                LICENSE AGREEMENT

     THIS LICENSE AGREEMENT (this "Agreement") is entered into effective as of
the 29th day of January, 2004 (the "Effective Date"), by and between The Bank of
New York, a New York banking corporation ("Licensor") and Barclays Global
Investors, N.A., a national banking association ("Licensee").

     WHEREAS, Licenser and Licensee have entered into a Fee Letter Agreement on
even date herewith (the "Fee Letter Agreement") regarding the establishment and
maintenance of a certain Gold-Based Securities Product (defined below) to be
known as the iShares COMEX Gold Trust.

     WHEREAS, in connection with such iShares COMEX Gold Trust, Licensee wishes
to obtain a license under certain of Licensors patent rights, and Licenser
wishes to grant such license subject to the terms and conditions of this
Agreement.

     NOW THEREFORE, for good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the Licensor and Licensee (each a
"Party" and collectively, the "Parties") agree as follows:

1.   CERTAIN DEFINITIONS.

     For the purposes of this Agreement, the following terms have the following
     meanings:

     "Affiliate" means any entity that directly or indirectly controls, is
     controlled by or is under common control with a Party. In this context, the
     term "control" means ownership of more than fifty percent (50%) of the
     voting securities of such entity (or, in the case of a noncorporate entity,
     equivalent interests). The term "controlled" has a corollary meaning.

     "Gold-Based Securities Product" means any investment product that is based
     solely on the securitization of gold. For the purposes of clarity,
     Gold-Based Securities Products do not include any products involving the
     securitization, in whole or in part, of any commodity other than gold.

     "Licensed Product" means any Gold-Based Securities Product that is sold,
     sponsored or issued by Licensee in the Territory that is covered by or
     encompasses a claim contained in Licensor Patent Rights, including, but not
     limited to, the iShares COMEX Gold Trust and any cross-listings of the
     shares thereof for trading on any non-U.S. securities exchanges within the
     Territory.

     "Licensee Improvements" means any improvement, enhancement, modification,
     derivative work or upgrade to any of Licensor Patent Rights made,
     conceived, reduced to practice, affixed or otherwise developed by or on
     behalf of Licensee during the term of this Agreement and solely as
     exercised under the License.

                                        1

<PAGE>

EXECUTION COPY

     "Licensor Patent Rights" means: (i) U.S. Patent Application No. 10/680,589,
     filed on October 6, 2003, entitled "Systems and Methods for Securitizing a
     Commodity" (the "Patent Application"), (ii) all foreign and international
     counterparts filed by or on behalf of Licensor (iii) all continuations,
     continuations-in-part, divisionals, substitutes and equivalents thereof
     relating to any of the foregoing patent applications (iv) all letters
     patent that are or may be granted from any of the foregoing patent
     applications, and (v) all know-how related to any of the foregoing patents
     and patent applications.

     "Territory" means worldwide.

     "Trust Agreement" means a definitive agreement entered into among Licensee,
     Licensor and certain other parties that, among other things, establishes a
     Licensed Product and sets forth the respective roles and responsibilities
     of Licensee and Licensor with respect to such Licensed Product.

     "Trustee" means any entity designated to act in the capacity of any or all
     of the following, as the context requires: trustee, custodian, issuing
     agent, registrar, agent, administrator or the like for and on behalf of (i)
     the sponsor, issuer or other entity offering shares in Gold-Based
     Securities Product and/or (ii) any participant of such Gold-Based
     Securities Product.

2.   LICENSE.

     Subject to the terms and conditions of this Agreement, Licensor hereby
     grants to Licensee a non-exclusive, personal and non-transferable (except
     as provided in Article 12.1) license under Licensor Patent Rights for the
     term of this Agreement solely for the purpose of establishing, operating
     and marketing the Licensed Product in the Territory (the "License").

     The License includes the limited right of Licensee to grant sublicenses to
     its Affiliates, partners, joint venturers, trustees, custodians and agents
     (each a "Sublicensee"), but solely in connection with such Sublicensee's
     establishment, operation and marketing of the Licensed Product and provided
     that Licensee shall have previously entered into an enforceable, written
     agreement with each such Sublicensee on terms no less protective of
     Licensor's rights in the Licensor Patent Rights that the terms in this
     Agreement and shall provide Licensor with copies of such agreements on
     request.

     ALL RIGHTS NOT SPECIFICALLY AND EXPRESSLY GRANTED TO LICENSEE IN THIS
     ARTICLE 2 ARE HEREBY RESERVED TO THE LICENSOR.

3.   COVENANT TO LICENSOR.

     Licensee covenants that it will not directly or indirectly initiate or
     participate in any action of any kind against Licensor, its successors and
     Affiliates, for their use of any Licensee Improvements in connection with
     establishing, operating or marketing investment products in the Territory
     based, in whole or in part, on the securitization of any commodity,
     including gold. This covenant is perpetual, personal, royalty-free and

                                        2

<PAGE>

EXECUTION COPY

     non-exclusive. This covenant shall survive termination or expiration of
     this Agreement for any reason except termination for Licensor's breach of
     this Agreement.

4.   PAYMENT.

     The grant of the License hereunder is in consideration for the engagement
     of Licensor to act as Trustee for each Licensed Product under terms
     substantially as set forth in the Fee Letter Agreement, or such other terms
     as the Parties may mutually agree in writing hereafter. No additional
     payment of royalties to Licensor shall be required as long as Licensor is
     so engaged.

     In the event that Licensor ceases to act as Trustee for a Licensed Product
     for any reason, then, to continue to enjoy the benefit of the License with
     respect to such Licensed Product, Licensee shall thereafter pay Licensor a
     running royalty that will accrue daily at the annualized rate of not
     greater than 0.0500% (five (5) basis points) of the total gross adjusted
     assets of such Licensed Product (the "Royalty Fee"), which rate shall be
     determined by Licensor in its discretion. Such Royalty Fee shall be due and
     payable within ten (10) days following the end of each calendar month for
     which such Royalty Fee has accrued.

     All payments to Licensor hereunder shall be made in United States dollars
     either by corporate check to Licensor at the address specified in Article
     12 (or such other address as Licensor may hereafter designate in writing)
     or by wire transfer to a bank account designated by Licensor in writing.
     Payments to Licensor hereunder shall be deemed made as of the day on which
     they are received by Licensor at such address or bank account. Late
     payments shall accrue interest from the date due at rate that is the lesser
     of 1.5% per month or the maximum rate permitted by law.

     Except with respect to any taxes assessed directly upon Licensor's income,
     all amounts payable by Licensee under this Agreement are exclusive of any
     taxes that are or may be assessed or imposed by any governmental authority
     in any jurisdiction in connection with establishing, operating and
     marketing such Licensed Product, including without limitation, any sales,
     use, excise, value-added, personal property, export, import or withholding
     taxes, which taxes shall all be assumed and paid by Licensee.

5.   REPORTS, RECORDS AND AUDITS.

     During the term of this Agreement, for so long as Licensee has a royalty
     obligation to Licensor under the terms hereof, Licensee shall deliver to
     Licensor within ten (10) days of the end of each calendar month a report
     setting forth in reasonable detail the Royalty Fee due to Licensor for such
     calendar month and Licensee's calculation of the same.

     During the term of this Agreement, for so long as Licensee has a royalty
     obligation to Licensor under the terms hereof and for three (3) years
     thereafter, Licensee shall keep complete and accurate books and records in
     sufficient detail to enable Licensor to verify the amounts due to it
     hereunder.

                                        3

<PAGE>

EXECUTION COPY

     During the term of this Agreement, for so long as Licensee has a royalty
     obligation to Licensor under the terms hereof and for three (3) years
     thereafter, Licensor shall have the right, through a qualified independent
     auditor, to review and audit the books and records of Licensee for the
     purpose of verifying the accuracy of royalty payments made by Licensee
     under this Agreement. Such reviews and audits shall be conducted with
     reasonable prior written notice to Licensee, at Licensee's place of
     business and during Licensee's normal business hours, and shall not be
     conducted more than once per calendar year. Each review and audit hereunder
     shall be at Licensor's sole cost and expense; provided, however, that
     Licensee shall promptly reimburse Licensor for all costs and expenses
     actually incurred in connection with a review and audit if the auditor
     determines that Licensee has underpaid by five percent (5%) or more during
     the relevant period under examination. Licensee will promptly pay Licensor
     the amount of any underpayment revealed by a review and audit, plus
     interest at the rate that is the lesser of 1.5% per month or the highest
     rate allowed by law from the dates that any unpaid amounts were due.

6.   ENFORCEMENT.

     Licensee shall promptly (i) notify Licensor of any potential or actual
     infringement by a third party of Licensor Patent Rights of which Licensee
     becomes aware, and (ii) provide to Licensor all evidence of such
     infringement in Licensee's possession, custody or control. Licensor shall
     have the sole right, but not the obligation, to initiate any legal action
     at its own expense against such infringement and to recover damages and
     enforce any injunction granted as a result of any judgment in Licensor's
     favor. Licensor shall have sole control over any such action including,
     without limitation, the sole right to settle and compromise such action. In
     the event of a dispute between Licensor and any third party regarding the
     infringement, validity or enforceability of Licensor Patent Rights,
     Licensee agrees, at Licensor's expense, to do all things reasonably
     requested by Licensor to assist Licensor in connection with such dispute.

7.   TERM AND TERMINATION.

     This Agreement shall commence on the Effective Date and, unless earlier
     terminated according to the terms of this Agreement, shall expire upon the
     expiration or lapse of the last-to-expire or lapse of the Licensor Patent
     Rights (or, if earlier, upon the entry of a final order by a court of
     competent jurisdiction, which order is not appealable or regarding which
     appeal is not taken, effectively holding that there is no valid claim
     included in the Licensor Patent Rights).

     During the term of this Agreement, Licensor shall diligently prosecute
     and/or maintain Licensor Patent Rights. If no letters patent are granted on
     the applications specified in Licensor Patent Rights or if all such
     applications are finally rejected without appeal being taken or are
     abandoned, withdrawn or otherwise lapse, then the License granted pursuant
     to this Agreement shall terminate immediately. Licensor shall notify
     Licensee promptly in writing if the foregoing events shall occur.

                                        4

<PAGE>

EXECUTION COPY

     The License granted pursuant to this Agreement will terminate immediately,
     without any requirement for Licensor to provide notice, with respect to any
     Licensed Product that is terminated.

     In addition, either Party may terminate this Agreement by written notice at
     any time if the other Party materially breaches this Agreement and fails to
     cure such breach with thirty (30) days following written notice thereof
     from the non-breaching Party. Upon any termination or expiration of this
     Agreement, all rights and obligations under this Agreement (including
     Licensee's rights under the License) will immediately terminate; provided,
     however, that the provisions of Articles 1, 8 (the second paragraph only),
     10 (solely with respect Licensee's Losses based on or arising from
     Licensee's exercise of its rights in accordance with this Agreement while
     the License was in effect), 11 and 12, and any other provision that
     survives by its express terms, shall survive any termination or expiration
     of this Agreement.

8.   ACKNOWLEDGMENT OF RIGHTS.

     During the term of this Agreement, Licensee will not directly or
     indirectly: (i) initiate or participate in any proceeding of any kind
     opposing the grant of any patent, or challenging any patent application,
     within the Licensor Patent Rights, (ii) dispute the validity or
     enforceability of any patent within the Licensor Patent Rights or any of
     the claims thereof, or (iii) assist any other Person to do any of the
     foregoing (except if required by court order or subpoena); provided,
     however, the foregoing shall in no way limit Licensee's ability to defend
     against or to mitigate any claim brought by Licensor against Licensee.

     During the term of this Agreement and thereafter, Licensee shall not
     directly or indirectly interfere improperly with Licensor's ability to
     negotiate with any potential licensee under, or any potential purchaser of,
     the Licensor Patent Rights, or assist any other Person to do the foregoing
     (except if required by court order or subpoena). This paragraph shall
     survive termination or expiration of this Agreement for any reason.

     Any violation of this Article 8 will constitute a material breach of this
     Agreement.

9.   REPRESENTATIONS AND WARRANTIES.

     Each Party hereby represents and warrants that (i) it has the power and
     authority to enter into this Agreement and perform its obligations
     hereunder; (ii) the execution and delivery of this Agreement have been duly
     authorized and all necessary actions have been taken to make this Agreement
     a legal, valid and binding obligation of such Party enforceable in
     accordance with its terms; and (iii) the execution and delivery of this
     Agreement and the performance by such Party of its obligations hereunder
     will not contravene or result in any breach of the Certificate of
     Incorporation or Bylaws of such Party or of any agreement, contract,
     indenture, license, instrument or understanding or, to the best of its
     knowledge, result in any violation of law, rule, regulation, statute, order
     or decree to which such Party is bound or by which they or any of their
     property is subject.

                                        5

<PAGE>

EXECUTION COPY

     EXCEPT AS EXPRESSLY SET FORTH IN THE FOREGOING, LICENSOR DOES NOT MAKE AND
     HEREBY EXPRESSLY DISCLAIMS ALL OTHER WARRANTIES, EXPRESS OR IMPLIED,
     STATUTORY OR OTHERWISE, REGARDING THE SUBJECT MATTER OF THIS AGREEMENT
     INCLUDING, BUT NOT LIMITED TO, ANY WARRANTIES OF MERCHANTABILITY, TITLE,
     FITNESS FOR A PARTICULAR PURPOSE, OR NON-INFRINGEMENT.

10.  INDEMNITY.

     Each Party shall defend, indemnify and hold harmless the other Party and
     such other Party's Affiliates, employees, officers, directors, and agents
     from and against any liabilities, losses, damages, costs or expenses
     (including, without limitation, reasonable attorneys' fees)(collectively,
     "Losses") resulting from or arising in connection with the breach by the
     indemnifying Party of any of its representations, warranties, covenants or
     obligations contained in this Agreement.

     Licensor shall indemnify, defend and hold harmless Licensee and its
     permitted sublicensees and assigns, Affiliates, employees, officers,
     directors, and agents from and against any Losses resulting or arising from
     any claim by the World Gold Council and/or World Gold Trust Services, LLC
     that Licensee establishing, operating or marketing Licensed Products in
     accordance with the terms of this Agreement infringes or otherwise violates
     any intellectual property rights of the World Gold Council and/or World
     Gold Trust Services, LLC.

     Licensor shall indemnify, defend and hold harmless Licensee and its
     permitted sublicensees and assigns, Affiliates, employees, officers,
     directors, and agents from and against any Losses resulting from or arising
     from any claim by Gemini Diversified Holdings LLC and/or Mr. Dan Ascani
     that Licensee establishing, operating or marketing Licensed Products in
     accordance with the terms of this Agreement infringes or otherwise violates
     any intellectual property rights of Gemini Diversified Holdings LLC and/or
     Mr. Dan Ascani. NOTWITHSTANDING THE FOREGOING, LICENSEE AGREES THAT
     LICENSOR'S ENTIRE LIABILITY TO THE INDEMNIFIED PARTIES IN RESPECT TO ANY
     SUCH CLAIM, IF ANY, SHALL IN NO EVENT EXCEED THE AMOUNT OF SEVENTY-FIVE
     THOUSAND U.S. DOLLARS ($75,000) IN THE AGGREGATE, WHETHER SUCH LIABILITY
     ARISES IN CONTRACT, TORT OR OTHERWISE AND EVEN IF LICENSOR HAS BEEN ADVISED
     OF THE POSSIBILITY OF LOSSES EXCEEDING SAID AMOUNT, AND THAT THE
     INDEMNIFIED PARTIES SHALL BE SOLELY RESPONSIBLE FOR ALL LOSSES IN EXCESS OF
     SAID AMOUNT.

     Each Party shall indemnify, defend and hold harmless the other Party and
     such other Party's Affiliates, employees, officers, directors, and agents
     from and against any Losses resulting or arising from any third-party claim
     that is based on, arises from or is related to the indemnifying Party
     allegedly having unauthorized possession of, making unauthorized use of, or
     obtaining/providing unauthorized access to, such third party's trade
     secrets, confidential or proprietary information, or service (whether such
     claim arises under tort, breach of express or implied contract, or
     otherwise), which acts are

                                        6

<PAGE>

EXECUTION COPY

     allegedly committed in connection with indemnifying Party establishing,
     operating or marketing a Licensed Product in accordance with this
     Agreement; provided, however, that the indemnity set forth in this
     paragraph shall not apply with respect to, and shall specifically exclude,
     (i) Losses resulting or arising from any third-party claim of patent,
     trademark or copyright infringement, and all claims based thereon, (ii)
     Losses arising as a result of the Indemnifying Party's obligations or
     duties in connection with a Trust Agreement (including, but not limited to,
     the Depository Trust Agreement for the iShares COMEX Gold Trust), the
     Parties acknowledging that such Losses, if any, are to be addressed
     pursuant to the terms of the Trust Agreement, and (iii) Losses covered by
     the second and third paragraphs of this Section 10, which paragraphs shall
     be Licensee's exclusive remedy for such Losses.

     If any action, suit, proceeding (including, but not limited to, any
     governmental investigation), claim or dispute (collectively, a
     "Proceeding") is brought or asserted against a Party for which
     indemnification is sought under this Agreement, the Party seeking
     indemnification (the "Indemnified Party") shall promptly (and in no event
     more than seven (7) days after receipt of notice of such Proceeding) notify
     the Party obligated to provide such indemnification (the "Indemnifying
     Party") of such Proceeding. The failure of the Indemnified Party to so
     notify the Indemnifying Party shall not impair the Indemnified Party's
     ability to obtain indemnification from the Indemnifying Party (but only for
     costs, expenses and liabilities incurred after such notice) unless such
     failure adversely affects the Indemnifying Party's ability to adequately
     oppose or defend such Proceeding. Upon receipt of such notice from the
     Indemnified Party, the Indemnifying Party shall be entitled to participate
     in such Proceeding at its own expense. Provided no conflict of interest
     exists as specified in clause (ii) below and there are no other defenses
     available to Indemnified Party as specified in clause (iv) below, the
     Indemnifying Party, to the extent that it shall so desire, shall be
     entitled to assume the defense of the Proceeding with counsel reasonably
     satisfactory to the Indemnified Party, in which case all attorney's fees
     and expenses shall be borne by the Indemnifying Party (except as specified
     below) and the Indemnifying Party shall in good faith defend the
     Indemnified Party. After receiving written notice from the Indemnifying
     Party of its election to assume the defense of the Proceeding, the
     Indemnified Party shall have the right to employ separate counsel in any
     such Proceeding and to participate in the defense thereof, provided that
     the fees and expenses of such counsel shall be borne entirely by the
     Indemnified Party unless (i) the Indemnifying Party expressly agrees in
     writing to pay such fees and expenses, (ii) there is such a conflict of
     interest between the Indemnifying Party and the Indemnified Party as would
     preclude, in compliance with the ethical rules in effect in the
     jurisdiction in which the Proceeding was brought, one lawyer from
     representing both parties simultaneously, (iii) the Indemnifying Party
     fails, within the earlier of (x) twenty (20) days following receipt of
     notice of the Proceeding from the Indemnified Party or (y) seven (7) days
     prior to the date the first response or appearance is required to be made
     in such Proceeding, to assume the defense of such Proceeding with counsel
     reasonably satisfactory to the Indemnified Party or (iv) there are legal
     defenses available to the Indemnified Party that are different from or are
     in addition to those available to the Indemnifying Party. In each of cases
     (i) through (iv), the fees and expenses of counsel shall be borne by the
     Indemnifying Party. No compromise or

                                        7

<PAGE>

EXECUTION COPY

     settlement of such Proceeding may be effected by either Party without the
     other Party's consent unless (m) there is no finding or admission of any
     violation of law and no effect on any other claims that may be made against
     such other Party and (n) the sole relief provided is monetary damages that
     are paid in full by the Party seeking the settlement. Neither Party shall
     have any liability with respect to any compromise or settlement effected
     without its consent, which shall not be unreasonably withheld. The
     Indemnifying Party shall have no obligation to indemnify and hold harmless
     the Indemnified Party from any loss, expense or liability incurred by the
     Indemnified Party as a result of a default judgment entered against the
     Indemnified Party unless such judgment was entered after the Indemnifying
     Party agreed, in writing, to assume the defense of such Proceeding.

11.  LIMITATION OF LIABILITY.

     IN NO EVENT SHALL LICENSOR BE LIABLE FOR ANY SPECIAL, INCIDENTAL,
     CONSEQUENTIAL, PUNITIVE, EXEMPLARY OR OTHER INDIRECT DAMAGES, HOWSOEVER
     CAUSED, WHETHER ARISING IN CONTRACT, TORT OR OTHERWISE, EVEN IF IT HAS BEEN
     ADVISED OF THE POSSIBILITY OF SUCH DAMAGES.

12.  MISCELLANEOUS PROVISIONS.

     12.1. Assignment. Licensee may not assign or otherwise transfer (whether by
          operation of law or otherwise) any right or obligation under this
          Agreement without the prior written consent of Licensor. Such consent
          shall be deemed given with respect to an assignment or transfer
          (whether by operation of law or otherwise) of the entire Agreement,
          including all rights and obligations hereunder, to a successor in
          interest or assignee of substantially all of the assets of Licensee,
          provided that Licensee has given prompt written notice thereof to
          Licensor. This Agreement is binding on and inures to the benefit of
          the Parties and their permitted successors and assigns. Any attempted
          assignment or other transfer of rights under this Agreement in
          violation of this Article 12.1 will be void.

     12.2. Governing Law. This Agreement will be governed by and construed under
          the laws of the State of New York, without reference to any choice of
          law rules (except that questions affecting the construction and effect
          of any patent will be determined by the law of the country in which
          the patent was granted).

     12.3. Exclusive Jurisdiction and Venue. Any action brought by either Party
          that arises out of or relates to this Agreement will be filed only in
          the state or federal courts located in New York County, New York. Each
          Party irrevocably submits to the jurisdiction of those courts. Each
          Party waives any objections that it may have now or in the future to
          the jurisdiction of those courts, and also waives any claim that it
          may have now or in the future that litigation brought in those courts
          has been brought in an inconvenient forum.

                                        8

<PAGE>

EXECUTION COPY

     12.4. Entire Agreement. This Agreement sets forth the entire agreement of
          the Parties as to its subject matter and supercedes all prior
          agreements, negotiations, representations, and promises between them
          with respect to its subject matter.

     12.5. Unenforceable Provisions. If any provision of this Agreement is held
          unenforceable by a court of competent jurisdiction, the other
          provisions will remain in full force and effect. If legally permitted,
          the unenforceable provision will be replaced with an enforceable
          provision that as nearly as possible gives effect to the Parties'
          intent.

     12.6. Relationship Of The Parties. Each Party is an independent contractor
          of the other Party. Nothing in this Agreement creates a partnership,
          joint venture or agency relationship between the Parties.

     12.7. Notices. A notice under this Agreement is not sufficient unless it
          is: (i) in writing; (ii) addressed using the contact information
          listed below for the Party to which the notice is being given (or
          using updated contact information which that Party has specified by
          written notice in accordance with this Article); and (iii) sent by
          hand delivery, facsimile transmission, registered or certified mail
          (return receipt requested), or reputable express delivery service with
          tracking capabilities (such as Federal Express).

          Contact Information for Licensor:    Contact Information for Licensee:

          The Bank of New York                 Barclays Global Investors, N.A.
          One Wall Street                      45 Freemont Street
          New York, NY 10286                   San Francisco, CA 94105
          Attn: Christopher Sturdy             Attn: S. Paul Sacks, Esq.

     12.8. Amendments. This Agreement may not be amended unless the amendment is
          in writing and signed by authorized representatives of both Parties.

     12.9. Waivers. A waiver of rights under this Agreement will not be
          effective unless it is in writing and signed by an authorized
          representative of the Party that is waiving the rights.

     12.10. Counterparts. The Parties may execute this Agreement by signing
          separate copies of the signature page. A facsimile copy of the
          signature page will have the same effect as the original.

                            (signature page follows)

                                        9

<PAGE>

EXECUTION COPY

IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed by
their duly authorized representatives.

The Bank of New York

By:
    -------------------------------
Name:
      -----------------------------
Title:
       ----------------------------
Date:
      -----------------------------

Barclays Global Investors, N.A.

By:
    -------------------------------
Name:
      -----------------------------
Title:
       ----------------------------
Date:
      -----------------------------

By:
    -------------------------------
Name:
      -----------------------------
Title:
       ----------------------------
Date:
      -----------------------------

                                       10Stipulation and Agreement of Settlement with Certain Defendants

 Exhibit 10.1 
  
 UNITED STATES DISTRICT COURT 
 NORTHERN DISTRICT OF TEXAS 
 DALLAS DIVISION 
  

					
	 ALLEN V. SCHEINER, on Behalf of
	  	§	  	 
	 Himself and All Others Similarly Situated,
	  	§	  	Civil No. 3:01-CV-418-H
	 	  	§	  	(Consolidated)
	 Plaintiff,
	  	§	  	 
	 	  	§	  	 
	 v.
	  	§	  	 
	 	  	§	  	 
	 	  	§	  	 
	 i2 TECHNOLOGIES, INC., SANJIV
	  	§	  	 
	 S. SIDHU, GREGORY A. BRADY,
	  	§	  	 
	 WILLIAM M. BEECHER and
	  	§	  	 
	 ARTHUR ANDERSEN LLP,
	  	§	  	 
	 	  	§	  	 
	 	  	§	  	 
	 Defendants.
	  	§	  	 

  
 STIPULATION AND
AGREEMENT OF SETTLEMENT  
 WITH CERTAIN DEFENDANTS  
  
 This Stipulation and Agreement of Settlement with Certain Defendants (the “Stipulation”) is submitted pursuant to
Rules 23 and 23.1 of the Federal Rules of Civil Procedure. Subject to the approval of the Court, this Stipulation is entered into among Certified Class Representatives Philip A. Anthony, Milson Lopes dos Reis, G.O. Morphew and Frederick W. Bradley
(“Class Representatives”) and Lead Plaintiff Kansas Public Employees Retirement System (collectively “Lead Plaintiffs”) on behalf of themselves and the Settlement Class (as hereinafter defined) and as an assignee of all of
i2’s right, title and interest in and to any and all claims asserted on behalf of the Company in the Derivative Actions (as hereinafter defined) and defendants i2 Technologies, Inc. (“i2” or the “Company”), Sanjiv S. Sidhu
(“Sidhu”), Gregory A. Brady (“Brady”) and William M. Beecher (“Beecher”) (collectively “Settling Defendants”), by and through their respective counsel. 

 WHEREAS: 
  
 A. The above-captioned action was initially filed in this Court on or about March 2, 2001 and is hereinafter referred to as the “Action” and
together with the claims asserted in the Derivative Actions (defined below) as the “Settling Actions”; 
  
 B. On August 3, 2001, Lead Plaintiffs filed their First Amended Complaint alleging that Defendants made materially false and misleading statements and
omissions in i2’s public statements and other public documents to the investing public regarding i2’s software, thereby allegedly artificially inflating the price of i2’s common stock; 
  
 C. On October 1, 2001, the Defendants moved to dismiss the First Amended
Complaint. Following oral argument, by Order dated April 11, 2002, the Court denied the Defendants’ motion to dismiss in its entirety; 
  
 D. On August 15, 2002, Lead Plaintiffs moved for certification of a class of all persons who purchased or otherwise acquired i2 common stock during the
period of May 4, 2000 through and including February 27, 2001. On December 5, 2002, the parties filed with the Court a Stipulation and proposed Order for Class Certification whereby Defendants stipulated that they would not oppose class
certification. On January 9, 2003, the Court issued an Order certifying the class; 
  
 E. On April 1, 2003 notice of the class certification was published in the National edition of The Wall Street Journal; 
  

F. Over seventy-eight thousand copies of a Notice of Pendency of this Action as a class action were sent to potential members of the certified class.
Only thirty-six purported members of the certified class sought exclusion from the class. 
  
 G. Lead Plaintiffs actively pursued document discovery for nearly two years. Plaintiffs’ Co-Lead Counsel obtained and reviewed over six hundred thousand pages of 
  

 2 

 responsive information from i2. Lead Plaintiffs subpoenaed documents from over forty of i2’s customers; thirty-three
analysts who followed i2; and Arthur Andersen, the Company’s accountants during the years in question. The subpoenas have resulted in the production of over two hundred thousand pages of additional responsive information; 
  
 H. On January 21, 2003, the Company announced that it was conducting a
re-audit of its financial statements and that it would likely restate its financial statements. On May 22, 2003, Lead Plaintiffs filed a Second Amended Complaint; 
  
 I. On July 21, 2003, i2 issued its restated financials. On September 30, 2003, Lead Plaintiffs filed the Third Amended
Complaint; 
  
 J. The currently operative complaint in this Action
is the Third Amended Consolidated Complaint for Violation of the Federal Securities Laws (the “Complaint”). The Complaint alleges, among other things, that defendants, in a scheme to artificially inflate the value of i2’s securities,
issued false and misleading press releases and other statements regarding the difficulties and delays associated with the implementation and integration of i2’s software products, and regarding i2’s financial condition during the period
from March 22, 2000 through and including January 27, 2003; 
  
 K.
The Complaint further alleges that Plaintiffs and other members of the Class purchased the common stock of i2 during this period at prices artificially inflated as a result of the defendants’ dissemination of false and misleading statements
regarding i2 in violation of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, 15 U.S.C. § 78j(b) and 78t(a), and Rule 10b-5, 17 C.F.R. § 240.10b-5, promulgated thereunder; 
  
 L. The Settling Defendants deny any wrongdoing whatsoever and this
Stipulation shall in no event be construed or deemed to be evidence of or an admission or concession on the 
  

 3 

 part of any Settling Defendant with respect to any claim or of any fault, liability, wrongdoing or damage whatsoever, or
any infirmity in the defenses that the Settling Defendants have asserted. The parties to this Stipulation recognize, however, that the Action has been filed by Plaintiffs and defended by the Settling Defendants in good faith and with adequate basis
in fact under Federal Rule of Civil Procedure 11, that the Action is being voluntarily settled after advice of counsel, and that the terms of the settlement are fair, adequate and reasonable. This Stipulation shall not be construed or deemed to be a
concession by any Plaintiff of any infirmity in the claims asserted in the Action; 
  
 M. Plaintiffs’ Co-Lead Counsel have conducted an investigation relating to the claims and the underlying events and transactions alleged in the Complaint. Plaintiffs’ Co-Lead Counsel have analyzed the
evidence adduced during pretrial discovery and have researched the applicable law with respect to the claims of Lead Plaintiffs and the Settlement Class against the Settling Defendants and the potential defenses thereto; 
  
 N. Lead Plaintiffs, by their counsel, have conducted discussions and
arm’s length negotiations with counsel for Settling Defendants and have participated in a mediation before the Honorable Nicholas H. Politan with respect to a compromise and settlement of the Action as against the Settling Defendants with a
view to settling the issues in dispute and achieving the best relief possible consistent with the interests of the Settlement Class; and 
  
 O. Based upon their investigation and pretrial discovery as set forth above, Plaintiffs’ Co-Lead Counsel have concluded that the terms and conditions
of this Stipulation are fair, reasonable and adequate to Lead Plaintiffs and the Settlement Class, and in their best interests, and Lead Plaintiffs have agreed to settle the claims raised in the Action, and any claims arising from substantially
similar facts (the “Settled Claims” as defined below), pursuant to the terms 
  

 4 

 and provisions of this Stipulation, after considering (a) the substantial benefits that members of the Settlement Class
will receive from settlement of the Action, (b) the attendant risks of litigation, and (c) the desirability of permitting the Settlement to be consummated as provided by the terms of this Stipulation. 
  
 NOW THEREFORE, without any admission or concession on the part of Plaintiffs
of any lack of merit of the Action whatsoever, and without any admission or concession of any fault, liability, wrongdoing or damage whatsoever, or lack of merit in the defenses whatsoever, by the Settling Defendants, it is hereby STIPULATED AND
AGREED, by and among the parties to this Stipulation, through their respective attorneys, subject to approval of the Court pursuant to Rule 23(e) of the Federal Rules of Civil Procedure, in consideration of the benefits flowing to the parties hereto
from the Settlement, that all Settled Claims (as hereinafter defined) as against the Released Parties (as hereinafter defined) and all Settled Defendants’ Claims (as hereinafter defined) shall be compromised, settled, released and dismissed
with prejudice, upon and subject to the following terms and conditions: 
  
 CERTAIN DEFINITIONS 
  
 1. As used in this
Stipulation, the following terms shall have the following meanings: 
  
 (a) “Authorized Claimant” means a Class Member who submits a timely and valid Proof of Claim form to the Claims Administrator. 
  
 (b) “Claims Administrator” means the firm of Gilardi & Co. LLC which shall administer the Settlement. 
  
 (c) “Class Period” means, for the purposes of this Stipulation
only, the period of time from March 22, 2000 through and including July 21, 2003. 
  

 5 

 (d) “Derivative Actions” means the actions entitled Alan Spector v. Sanjiv S. Sidhu, et
al., Civil No. 3:03-CV-0841-H (N.D. Tex.); Thomas C. Olson v. Sanjiv S. Sidhu, et al., Civil No. 3:03-CV-0869-H (N.D. Tex.) (Spector and Olsen were consolidated and are collectively referred to as the “Spector
Action”); Peter Kaltman v. Sanjiv S. Sidhu, et al., Civil No 3:03-CV-1057-H (N.D. Tex.) (the “Kaltman Action”); and Stanley Zwick and Peter Gold v. i2 Technologies, Inc., C.A. No. 20516-NC (Del. Ch., New
Castle Co.) (the “Zwick Action”). 
  
 (e)
“Settlement Class” and “Settlement Class Members” means, for the purposes of this Stipulation only, all persons or entities who purchased or otherwise acquired the common stock of i2 between March 22, 2000 and July 21, 2003,
inclusive, and who were damaged thereby. Excluded from the Settlement Class are the defendants in this action; members of the immediate families (parents, spouses, siblings and children) of each of the individual defendants; any person, firm, trust,
corporation, officer, director or other individual or entity in which any defendant has a controlling interest or which is related to or affiliated with any of the defendants; and the legal representatives, heirs, successors in interest or assigns
of any such excluded party. Also excluded from the Settlement Class are (i) any putative Settlement Class Members who previously excluded themselves from the class previously certified for the period of May 4, 2000 through and including February 27,
2001 herein by filing a request for exclusion in accordance with the requirements set forth in the Notice of Pendency previously mailed to putative members of the then certified class and (ii) any putative Settlement Class Members who exclude
themselves by filing a request for exclusion in accordance with the requirements set forth in the Settlement Notice. 
  
 (f) “Settling Defendants” means i2, Sanjiv S. Sidhu, Gregory A. Brady and William M. Beecher. 
  

 6 

 (g) “Settling Defendants’ Counsel” means the law firms of Wilson Sonsini Goodrich &
Rosati, P.C. and Brown McCarroll LLP for i2; the law firm of Fulbright & Jaworski L.L.P. for Sidhu; the law firms of Lynn, Tilloston & Pinker L.L.P. and Proskauer Rose L.L.P. for Beecher; and the law firm of Akin Gump Strauss Hauer &
Feld LLP for Brady. 
  
 (h) “Effective Date of
Settlement” or “Effective Date” means the date upon which the Settlement contemplated by this Stipulation shall become effective, as set forth in ¶ 24 below. 
  
 (i) “Insurance Carriers” means the insurance carriers that issued policies of directors and officers insurance to
or on behalf of the Settling Defendants covering the claims asserted in this action. 
  
 (j) “Settlement Notice” means the Notice of Proposed Partial Settlement of Class Action, Motion for Attorneys’ Fees and Settlement Fairness Hearing, which is to be sent to members of the Settlement
Class substantially in the form attached hereto as Exhibit 1 to Exhibit A. 
  
 (k) “Order and Final Judgment” means the proposed order to be entered approving the Settlement substantially in the form attached hereto as Exhibit B. 
  
 (l) “Order for Notice and Hearing” means the proposed order
preliminarily approving the Settlement and directing notice thereof to the Class substantially in the form attached hereto as Exhibit A. 
  
 (m) “Plaintiffs’ Counsel” means Plaintiffs’ Co-Lead Counsel and all of the other attorneys representing Plaintiffs in this action.

  

 7 

 (n) “Plaintiffs’ Co-Lead Counsel” means the law firms of Milberg Weiss Bershad &
Schulman LLP (“Milberg Weiss”), Johnson & Perkinson and Girard Gibbs & De Bartolomeo LLP. 
  
 (o) “Publication Notice” means the summary notice of proposed Settlement and hearing for publication substantially in the form attached as
Exhibit 3 to Exhibit A. 
  
 (p) “Released Parties” means
any and all of the Settling Defendants, their past or present subsidiaries, parents, successors and predecessors, officers, directors, agents, employees and attorneys, and any person, firm, trust, corporation, officer, director or other individual
or entity in which any Settling Defendant has a controlling interest or which is related to or affiliated with any of the Settling Defendants, and the legal representatives, heirs, successors in interest or assigns of any such party. “Released
Parties” does not include defendant Arthur Andersen LLP or any of its partners, principals, officers, directors, or employees, its predecessors, successors, and assigns, and any divisions or constituents, or constituent entities. 
  
 (q) “Settled Claims” means any and all claims, debts, demands,
rights or causes of action or liabilities whatsoever (including, but not limited to, any claims for damages, interest, attorneys’ fees, expert or consulting fees, and any other costs, expenses or liability whatsoever), whether based on federal,
state, local, statutory or common law or any other law, rule or regulation, whether fixed or contingent, accrued or un-accrued, liquidated or un-liquidated, at law or in equity, matured or un-matured, whether class, individual or derivative in
nature, including both known claims and Unknown Claims (as defined below), (i) that have been asserted in this Action by the Settlement Class Members or their attorneys or any of them against any of the Released Parties, or (ii) that could have been
asserted in any forum by the Settlement 
  

 8 

 Class Members or their attorneys or any of them or their successors and assigns of any of them against any of the
Released Parties which arise out of or are based upon or relate in any way to the allegations, transactions, facts, matters or occurrences, representations or omissions involved, set forth, or referred to in the Complaint and relate to the purchase
or ownership of shares of the common stock of i2 during the Settlement Class Period. 
  
 (r) “Settled Defendants’ Claims” means any and all claims, rights or causes of action or liabilities whatsoever, whether based on federal, state, local, statutory or common law or any other law, rule or
regulation, including both known claims and Unknown Claims, that have been or could have been asserted in the Action or any forum by the Settling Defendants or any of them or the successors and assigns of any of them against any of the Lead
Plaintiffs, Class Members or their attorneys, which arise out of or relate in any way to the institution, prosecution, or settlement of the Action, except for claims to enforce the Settlement. 
  
 (s) “Settlement” means the settlement contemplated by this
Stipulation. 
  
 (t) “Unknown Claims” means any and all
Settled Claims which any Lead Plaintiff or Settlement Class Member does not know or suspect to exist in his, her or its favor at the time of the release of the Released Parties, and any Settled Defendants’ Claims which any Settling Defendant
does not know or suspect to exist in his, her or its favor. With respect to any and all Settled Claims and Settled Defendants’ Claims, the parties stipulate and agree that upon the Effective Date, the Lead Plaintiffs and the Settling Defendants
shall expressly, and each Settlement Class Member shall be deemed to have, and by operation of the Judgment shall have, expressly waived any and all provisions, rights and benefits conferred by any law of any state or territory of the United States,
or principle of common law, which is similar, comparable, or equivalent to Cal. Civ. Code § 1542, which provides: 
  
 A general release does not extend to claims which the creditor does not know or suspect to exist in his favor at the time of executing the release, which
if known by him must have materially affected his settlement with the debtor. 
  

 9 

 Lead Plaintiffs and Settling Defendants acknowledge, and Settlement Class Members by operation of law shall be deemed to
have acknowledged, that the inclusion of “Unknown Claims” in the definition of Settled Claims and Settled Defendants’ Claims was separately bargained for and was a key element of the Settlement. 
  
 SCOPE AND EFFECT OF SETTLEMENT 
  
 2. (a) The obligations incurred pursuant to this Stipulation shall be in full
and final disposition of the Settling Actions as against the Settling Defendants and any and all Settled Claims as against all Released Parties and any and all Settled Defendants’ Claims. 
  
 (b) For purposes of this Settlement the parties have stipulated to the
certification of the Settlement Class as defined in Paragraph 1(c) above. During the litigation, the Court previously certified a class covering a shorter class period wholly encompassed within the stipulated Settlement Class Period. Pursuant to the
prior certification, Notice of the Pendency of this action as a class action was sent to members of the certified class and members of the certified class were given the opportunity to exclude themselves from the certified class. The persons and
entities who excluded themselves from the certified class are listed on Exhibit C annexed hereto and they are excluded from the Settlement Class. In connection with the motion to preliminarily approve the Settlement, the Parties hereto shall request
the Court to allow only the members of the Settlement Class who did not previously have an opportunity to request exclusion to request exclusion in connection with this Settlement. The exhibits annexed hereto contemplate that the Court will grant
such request. If however the Court does not grant the request, the documents shall be modified to accommodate the Court’s ruling and any such 
  

 10 

 modification shall not be a material or substantial change to the exhibits such as would delay or prevent the Effective
Date under paragraph 26 and shall not be the basis for any termination of this Settlement under paragraph 25. 
  
 3. (a) Upon the Effective Date of this Settlement, Lead Plaintiffs and members of the Settlement Class on behalf of themselves, their heirs, executors,
administrators, successors and assigns, shall, with respect to each and every Settled Claim, release and forever discharge, and shall forever be enjoined from prosecuting, either directly or in any other capacity, any Settled Claims against any of
the Released Parties. 
  
 (b) Upon the Effective Date of this
Settlement, each of the Settling Defendants, on behalf of themselves and the Released Parties, shall release and forever discharge each and every of the Settled Defendants’ Claims, and shall forever be enjoined from prosecuting the Settled
Defendants’ Claims. 
  
 THE SETTLEMENT CONSIDERATION

  
 4. The Settling Defendants shall provide the following
consideration: 
  
 (a) The Settling Defendants shall cause a total
of Eighty-Four Million Eight Hundred Fifty Thousand Dollars ($84,850,000.00) (US$) (the “Cash Settlement Amount”) to be paid into escrow on behalf of the Settlement Class as follows: 
  
 (i) Within seven (7) days of the execution of this Stipulation, i2 shall pay
Forty-One Million Eight Hundred Fifty Thousand Dollars ($41,850,000.00) (US$) into an escrow account designated by Plaintiffs’ Co-Lead Counsel (the “Escrow Account”). 
  
 (ii) Upon execution of this Stipulation, the Settling Defendants shall instruct the Insurance Carriers to pay Forty-Three
Million Dollars ($43,000,000.00) (US$), into the Escrow Account as follows: 
  
 (1) Within fourteen (14) days from the execution of this Stipulation, Thirty-Three Million Dollars ($33,000,000.00) (U.S.$) shall be deposited in the Escrow Account; and; 
  

 11 

 (2) No later than June 7, 2004, Ten Million Dollars ($10,000,000.00) (U.S.$) shall be deposited in the
Escrow Account; 
  
 (iii) Within twenty-one (21) days of the
execution of this Stipulation, i2 shall pay into the Escrow Account the difference between Seventy-Four Million Eight Hundred Fifty Thousand Dollars ($74,850,000.00) (US$) and the sum of the amounts paid into the Escrow Account pursuant to
¶¶ 4(a)(i) and 4(a)(ii)(1) above and by June 14, 2004 i2 shall pay into the Escrow Account the difference between Eighty-Four Million Eight Hundred Fifty Thousand Dollars ($84,850,000.00) (US$) and the sum of the amounts paid into the
Escrow Account pursuant to ¶¶ 4(a)(i), 4(a)(ii)(1) and 4(a)(ii)(2) above. 
  
 (b) i2 and the individual defendants shall assign and transfer to the Settlement Class all of their right, title and interest in and to any and all claims they may have against Arthur Andersen LLP with respect to the
matters alleged in the Action. 
  
 (c) i2 shall assign and
transfer to the Settlement Class all of its right, title and interest in and to any and all claims asserted on behalf of the Company in the Derivative Actions. 
  

(d) The Company and its agents shall provide reasonable cooperation to Plaintiffs in connection with their prosecution of the assigned claims
identified in paragraphs 4(b) and (c), including making available to Plaintiffs’ Co-Lead Counsel, at reasonable, mutually convenient times and places, employees of the Company for interviews and non-privileged documents in the Company’s
custody, possession or control pertaining to such claims. 
  

 12 

 (e) Within sixty (60) days after the execution of this Stipulation, i2 shall adopt the corporate
governance enhancements described in Exhibit D, attached hereto. 
  
 5. In consideration of the settlement of the claims against the individual defendants, including the assigned claims set forth in Paragraphs 4(b) and (c) above and the undertaking to institute corporate governance enhancements set forth in
Paragraph 4(e) above, the Derivative Actions will be settled and Plaintiffs’ Co-Lead Counsel shall cause: 
  
 (a) counsel for the plaintiffs-appellants in the Spector Action and counsel for the defendants thereto to file a motion or stipulation to stay the
appeal and/or place the appeal on a suspense calendar, which upon entry of the Final Order (defined below) will convert to a withdrawal of the appeal with prejudice; and 
  
 (b) counsel for the plaintiffs in the Zwick Action to file a notice of dismissal with prejudice conditioned upon this
Stipulation becoming effective as defined in ¶ 25 below. 
  
 6. (a) The Cash Settlement Amount and any interest earned thereon shall be the Gross Settlement Fund. The Gross Settlement Fund, net of any Taxes (as defined below) on the income thereof, shall be used to pay (i) the Notice and
Administration Costs referred to in ¶ 7 hereof, (ii) the attorneys’ fee and expense award referred to in ¶ 9 hereof, and (iii) the remaining administration expenses referred to in ¶ 8 hereof. The balance of the Gross Settlement
Fund after the above payments shall be the Net Settlement Fund which shall be distributed to the Authorized Claimants as provided in ¶¶ 17-19 hereof. Any sums required to be held in escrow hereunder prior to the Effective Date shall be
held by Milberg Weiss as Escrow Agent for the Settlement Fund. All funds held by the Escrow Agent shall be deemed to be in the custody of 
  

 13 

 the Court and shall remain subject to the jurisdiction of the Court until such time as the funds shall be distributed or
returned to the persons paying the same pursuant to this Stipulation and/or further order of the Court. The Escrow Agent shall invest any funds in excess of $100,000 in short term United States Agency or Treasury Securities (or a mutual fund
invested solely in such instruments), and shall collect and reinvest all interest accrued thereon. Any funds held in escrow in an amount of less than $100,000 may be held in an interest bearing bank account insured by the FDIC. The parties hereto
agree that the Settlement Fund is intended to be a Qualified Settlement Fund within the meaning of Treasury Regulation § 1.468B-1 and elect to have such Qualified Settlement Fund treatment apply as of the earliest possible date, and that the
Escrow Agent, as administrator of the Settlement Fund within the meaning of Treasury Regulation § 1.468B-2(k)(3), shall be responsible for filing tax returns for the Settlement Fund and paying from the Settlement Fund any Taxes owed with
respect to the Settlement Fund. Counsel for i2 agrees to provide promptly to the Escrow Agent the statement described in Treasury Regulation § 1.468B-3(e). 
  

(b) All (i) taxes on the income of the Gross Settlement Fund and (ii) expenses and costs incurred in connection with the taxation of the Gross
Settlement Fund (including, without limitation, expenses of tax attorneys and accountants) (collectively “Taxes”) shall be paid out of the Gross Settlement Fund, shall be considered to be a cost of administration of the Settlement and
shall be timely paid by the Escrow Agent without prior Order of the Court. 
  
 ADMINISTRATION 
  
 7. The Claims Administrator, an independent contractor, shall administer the Settlement subject to the jurisdiction of the Court. Settling Defendants’ Counsel shall cooperate in the administration of the Settlement to the extent
reasonably necessary to effectuate its terms, including providing without charge all information from i2’s transfer records concerning the identity of Settlement Class Members and their transactions. 
  

 14 

 8. The Escrow Agent may pay from the Cash Settlement Amount, without further approval from the Settling
Defendants or the Court, the reasonable costs and expenses associated with identifying members of the Settlement Class and effecting mailed Notice and Publication Notice to the Settlement Class, and the administration of the Settlement, including
without limitation, the actual costs of publication, printing and mailing the Settlement Notice, reimbursements to nominee owners for forwarding notice to their beneficial owners, and the administrative expenses incurred and fees charged by the
Claims Administrator in connection with providing notice and processing the submitted claims. 
  
 ATTORNEYS’ FEES AND EXPENSES 
  
 9. Plaintiffs’ Co-Lead Counsel will apply to the Court for an award on behalf of all Plaintiffs’ Counsel (including Counsel in the Spector, Kaltman and Zwick Actions) from the Gross
Settlement Fund of attorneys’ fees not to exceed one-third (33 1/3%) of the Gross
Settlement Fund and reimbursement of expenses, plus interest on such amounts. Such attorneys’ fees, expenses, and interest as are awarded by the Court shall be paid from the Gross Settlement Fund to Plaintiffs’ Co-Lead Counsel immediately
upon award, notwithstanding the existence of any timely filed objections thereto, or potential for appeal therefrom, or collateral attack on the settlement or any part thereof, subject to Plaintiffs’ Co-Lead Counsel’s obligation to make
appropriate refunds or repayments to the Settlement Fund plus accrued interest at the same net rate as is earned by the Gross Settlement Fund, if and when, as a result of any appeal and/or further proceedings on remand, or successful collateral
attack, the fee or cost award is reduced or reversed. 
  

 15 

 DISTRIBUTION TO AUTHORIZED CLAIMANTS 
  
 10. Any member of the Settlement Class who does not submit a valid Proof of
Claim will not be entitled to receive any of the proceeds from the Net Settlement Fund but will otherwise be bound by all of the terms of this Stipulation and the Settlement, including the terms of the Judgment to be entered in the Action and the
releases provided for herein, and will be barred from bringing any action against the Released Parties concerning the Settled Claims. 
  
 11. The Claims Administrator shall process the Proofs of Claim and, after entry of the Class Distribution Order, distribute the Net Settlement Fund to the
Authorized Claimants. Except for their obligation to pay and cause the payment of the Cash Settlement Amount, and to cooperate in the production of information with respect to the identification of Class Members from i2’s shareholder transfer
records, as provided herein, Plaintiffs’ Co-Lead Counsel shall have the right, but not the obligation, to direct the Claims Administrator to waive what they deem to be formal or technical defects in any Proofs of Claim submitted in the
interests of achieving substantial justice. 
  
 12. For purposes
of determining the extent, if any, to which a Class Member shall be entitled to be treated as an “Authorized Claimant”, the following conditions shall apply: 
  
 (a) Each Settlement Class Member shall be required to submit a Proof of Claim (see attached Exhibit 2 to Exhibit A),
supported by such documents as are designated therein, including proof of the transactions claimed and the losses incurred thereon, or such other documents or proof as the Claims Administrator, in its discretion, may deem acceptable; 
  
 (b) All Proofs of Claim must be submitted by the date specified in the
Settlement Notice unless such period is extended by Order of the Court. Any Settlement Class Member who fails to submit a Proof of Claim by such date shall be forever barred from receiving 
  

 16 

 any payment pursuant to this Stipulation (unless, by Order of the Court, a later submitted Proof of Claim by such
Settlement Class Member is approved), but shall in all other respects be bound by all of the terms of this Stipulation and the Settlement including the terms of the Judgment to be entered in the Action and the releases provided for herein, and will
be barred from bringing any action against the Released Parties asserting the Settled Claims. Provided that it is received before the motion for the Class Distribution Order is filed, a Proof of Claim shall be deemed to have been submitted when
posted, if received with a postmark indicated on the envelope and if mailed by first-class mail and addressed in accordance with the instructions thereon. In all other cases, the Proof of Claim shall be deemed to have been submitted when actually
received by the Claims Administrator; 
  
 (c) Each Proof of Claim
shall be submitted to and reviewed by the Claims Administrator, who shall determine in accordance with this Stipulation the extent, if any, to which each claim shall be allowed, subject to review by the Court pursuant to subparagraph (e) below;

  
 (d) Proofs of Claim that do not meet the submission
requirements may be rejected. Prior to rejection of a Proof of Claim, the Claims Administrator shall communicate with the Claimant in order to remedy the curable deficiencies in the Proof of Claims submitted. The Claims Administrator shall notify,
in a timely fashion and in writing, all Claimants whose Proofs of Claim they propose to reject in whole or in part, setting forth the reasons therefor, and shall indicate in such notice that the Claimant whose claim is to be rejected has the right
to a review by the Court if the Claimant so desires and complies with the requirements of subparagraph (e) below; 
  

 17 

 (e) If any Claimant whose claim has been rejected in whole or in part desires to contest such rejection,
the Claimant must, within twenty (20) days after the date of mailing of the notice required in subparagraph (d) above, serve upon the Claims Administrator a notice and statement of reasons indicating the Claimant’s grounds for contesting the
rejection along with any supporting documentation, and requesting a review thereof by the Court. If a dispute concerning a claim cannot be otherwise resolved, Plaintiffs’ Co-Lead Counsel shall thereafter present the request for review to the
Court; and 
  
 (f) The administrative determinations of the Claims
Administrator accepting and rejecting claims shall be presented to the Court, on notice to Settling Defendants’ Counsel, for approval by the Court in the Class Distribution Order. 
  
 13. Each Claimant shall be deemed to have submitted to the jurisdiction of the Court with respect to the Claimant’s
claim, and the claim will be subject to investigation and discovery under the Federal Rules of Civil Procedure, provided that such investigation and discovery shall be limited to that Claimant’s status as a Settlement Class Member and the
validity and amount of the Claimant’s claim. No discovery shall be allowed on the merits of the Action or Settlement in connection with processing of the Proofs of Claim. 
  
 14. Payment pursuant to this Stipulation shall be deemed final and conclusive against all Settlement Class Members. All
Settlement Class Members whose claims are not approved by the Court shall be barred from participating in distributions from the Net Settlement Fund, but otherwise shall be bound by all of the terms of this Stipulation and the Settlement, including
the terms of the Judgment to be entered in the Action and the releases provided for herein, and will be barred from bringing any action against the Released Parties concerning the Settled Claims. 
  

 18 

 15. All proceedings with respect to the administration, processing and determination of claims described
by ¶ 13 of this Stipulation and the determination of all controversies relating thereto, including disputed questions of law and fact with respect to the validity of claims, shall be subject to the jurisdiction of the Court. 
  
 16. The Net Settlement Fund shall be distributed to Authorized Claimants by
the Claims Administrator only after the Effective Date and after: (i) all Claims have been processed, and all Claimants whose Claims have been rejected or disallowed, in whole or in part, have been notified and provided the opportunity to be heard
concerning such rejection or disallowance; (ii) all objections with respect to all rejected or disallowed claims have been resolved by the Court, and all appeals therefrom have been resolved or the time therefor has expired; (iii) all matters with
respect to attorneys’ fees, costs, and disbursements have been resolved by the Court, all appeals therefrom have been resolved or the time therefor has expired; and (iv) all costs of administration have been paid. 
  
 17. Plaintiffs’ Co-Lead Counsel will apply to the Court, on notice to
Settling Defendants’ Counsel, for an order (the “Class Distribution Order”) approving the Claims Administrator’s administrative determinations concerning the acceptance and rejection of the claims submitted herein and approving
any fees and expenses not previously applied for, including the fees and expenses of the Claims Administrator, and, if the Effective Date has occurred, directing payment of the Net Settlement Fund to Authorized Claimants. 
  
 18. The Claims Administrator shall determine each Authorized Claimant’s
pro rata share of the Net Settlement Fund based upon each Authorized Claimant’s Recognized Claim as defined in the Plan of Allocation described in the Settlement Notice annexed hereto as Exhibit 1 to Exhibit A, or in such other
Plan of Allocation as the Court approves. 
  

 19 

 19. The Plan of Allocation proposed in the Settlement Notice is not a necessary term of this Stipulation
and it is not a condition of this Stipulation that any particular Plan of Allocation be approved. Each Authorized Claimant shall be allocated a pro rata share of the Net Settlement Fund based on his or her Recognized Claim compared to
the total Recognized Claims of all accepted claimants. This is not a claims-made settlement. As of the Effective Date of the Settlement, neither the Settling Defendants nor the Insurance Carriers shall be entitled to a return, recovery, or reversion
of any amounts they contribute to the Cash Settlement Amount, the Gross Settlement Fund, or the Net Settlement Fund. Neither the Settling Defendants nor the Insurance Carriers shall have any involvement in reviewing or challenging claims.

  
 20. No person shall have any claim against any Plaintiffs,
class members, the claims administrator, the Settling Defendants or their respective counsel based on investments or distributions made substantially in accordance with this Stipulation and the Settlement contained herein, the Plan of Allocation or
further orders of the Court. 
  
 21. It is understood and agreed
by the parties hereto that the proposed Plan of Allocation is not part of the Stipulation and is to be considered by the Court separately from the Court’s consideration of the fairness, reasonableness, and adequacy of the Settlement set forth
in the Stipulation, and any order or proceeding relating to the Plan of Allocation shall not operate to terminate or cancel the Stipulation or affect the finality of the Court’s Judgment approving the Stipulation and the Settlement set forth
herein, or any other orders entered pursuant to the Stipulation. 
  
 22. The Settling Defendants and their counsel shall have no responsibility for, interest in, or liability whatsoever with respect to: 
  
 (a) any act, omission or determination of the Escrow Agent, Settlement Administrator, Plaintiffs’ Co-Lead Counsel, or any designees or agents of
Plaintiffs’ Co-Lead Counsel, Escrow Agent or Settlement Administrator; 
  

 20 

 (b) any act, omission or determination of Plaintiff’s Co-Lead Counsel or their designees or agents
in connection with the administration of the Settlement; 
  
 (c)
the management, investment, or distribution of the Settlement Fund; 
  
 (d) the determination, administration, calculation, or payment of any claims asserted against the Settlement Fund; or 
  
 (e) the Plan of Allocation. 
  
 TERMS OF ORDER FOR NOTICE AND HEARING 
  
 23. Promptly after this Stipulation has been fully executed, Plaintiffs’ Counsel and Settling Defendants’ Counsel jointly shall move the Court
for entry of an Preliminary Order in Connection with Settlement Proceedings, substantially in the form annexed hereto as Exhibit A. 
  
 TERMS OF ORDER AND FINAL JUDGMENT 
  
 24. If the Settlement contemplated by this Stipulation is approved by the Court, counsel for the parties shall request that the Court enter an Order and
Final Judgment substantially in the form annexed hereto as Exhibit B. 
  
 SUPPLEMENTAL AGREEMENT 
  
 25.
Simultaneously herewith, Plaintiffs’ Co-Lead Counsel and Settling Defendants’ Counsel are executing a “Supplemental Agreement” setting forth certain conditions under which this Stipulation may be terminated by any Settling
Defendant if potential Settlement Class Members with claims and/or losses above a certain threshold amount exclude themselves from 
  

 21 

 the Settlement Class. The Supplemental Agreement shall not be filed prior to the Settlement Fairness Hearing unless a
dispute arises as to its terms. In the event of a withdrawal from this Stipulation pursuant to the Supplemental Agreement, this Stipulation shall become null and void and of no further force and effect and the provisions of ¶ 28 shall apply.
Notwithstanding the foregoing, the Stipulation shall not become null and void as a result of the election by a Settling Defendant to exercise its or his option to withdraw from the Stipulation pursuant to the Supplemental Agreement until the
conditions set forth in the Supplemental Agreement have been satisfied. 
  
 EFFECTIVE DATE OF SETTLEMENT, WAIVER OR TERMINATION 
  
 26. The Effective Date of Settlement shall be the date when all the following shall have occurred: 
  
 (a) entry of the Order for Notice and Hearing in all material respects in the form annexed hereto as Exhibit A; 
  
 (b) approval by the Court of the Settlement, following notice to the
Settlement Class and a hearing, as prescribed by Rule 23 of the Federal Rules of Civil Procedure; 
  
 (c) entry by the Court of an Order and Final Judgment, substantially in the form attached hereto as Exhibit B, and the expiration of any time for appeal
or review of such Order and Final Judgment, or, if any appeal is filed and not dismissed, after such Order and Final Judgment is upheld on appeal in all material respects and is no longer subject to review upon appeal or review by writ of
certiorari, or, in the event that the Court enters an order and final judgment in form other than that provided above (“Alternative Judgment”) and none of the parties hereto elect to terminate this Settlement, the date that such
Alternative Judgment becomes final and no longer subject to appeal or review; and 
  

 22 

 (d) the withdrawal of the appeal in Spector and the dismissal of the Zwick action with
prejudice become effective as described in paragraph 5, above. 
  
 27. Settling Defendants or Plaintiffs’ Co-Lead Counsel shall have the right to terminate the Settlement and this Stipulation by providing written notice of their election to do so (“Termination Notice”) to all other parties
hereto within thirty (30) days of: (a) the Court’s declining to enter the Order for Notice and Hearing in any material respect; (b) the Court’s refusal to approve this Stipulation or any material part of it; (c) the Court’s declining
to enter the Order and Final Judgment in any material respect; (d) the date upon which the Order and Final Judgment is modified or reversed in any material respect by the Court of Appeals or the Supreme Court; or (e) the date upon which an
Alternative Judgment is modified or reversed in any material respect by the Court of Appeals or the Supreme Court. 
  
 28. Except as otherwise provided herein, in the event the Settlement is terminated or fails to become effective for any reason, then the parties to this
Stipulation, and the parties to the Derivative Actions, shall be deemed to have reverted to their respective status in the Actions as of the date and time immediately prior to the execution of this Stipulation and, except as otherwise expressly
provided, the parties shall proceed in all respects as if this Stipulation and any related orders had not been entered, and any portion of the Cash Settlement Amount previously paid by Settling Defendants and/or the Insurance Carriers, together with
any interest earned thereon, less any Taxes due with respect to such income, and less costs of administration and notice actually incurred and paid or payable from the Cash Settlement Amount shall be returned to the persons or Insurance Carriers
paying the same. In such event, neither Plaintiffs, nor Plaintiffs’ Counsel, nor any Settlement Class Member shall be liable for repaying any such Taxes due or any such costs of administration and notice actually incurred and paid or payable
from the Cash Settlement Amount. 
  

 23 

 NO ADMISSION OF WRONGDOING 
  
 29. This Stipulation, whether or not consummated, and any proceedings taken pursuant to it: 
  
 (a) shall not be offered or received against the Settling Defendants as
evidence of or construed as or deemed to be evidence of any presumption, concession, or admission by any of the Settling Defendants with respect to the truth of any fact alleged by any of the plaintiffs or the validity of any claim that has been or
could have been asserted in the Action or in any litigation, or the deficiency of any defense that has been or could have been asserted in the Action or in any litigation, or of any liability, negligence, fault, or wrongdoing of the Settling
Defendants; 
  
 (b) shall not be offered or received against the
Settling Defendants as evidence of a presumption, concession or admission of any fault, misrepresentation or omission with respect to any statement or written document approved or made by any Settling Defendant; 
  
 (c) shall not be offered or received against the Settling Defendants as
evidence of a presumption, concession or admission with respect to any liability, negligence, fault or wrongdoing, or in any way referred to for any other reason as against any of the Settling Defendants, in any other civil, criminal or
administrative action or proceeding, other than such proceedings as may be necessary to effectuate the provisions of this Stipulation; provided, however, that if this Stipulation is approved by the Court, Settling Defendants may refer to it to
effectuate the liability protection granted them hereunder; 
  

 24 

 (d) shall not be construed as an admission or concession that the consideration to be given hereunder
represents the amount which could be or would have been recovered after trial; and 
  
 (e) shall not be construed as or received in evidence as an admission, concession or presumption against Lead Plaintiffs or any of the Settlement Class Members that any of their claims are without merit, or that any
defenses asserted by the Settling Defendants have any merit, or that damages recoverable under the Complaint would not have exceeded the Gross Settlement Fund. 
  

MISCELLANEOUS PROVISIONS 
  
 30. All of the exhibits attached hereto are hereby incorporated by reference as though fully set forth herein. 
  
 31. i2 warrants that it has not filed or instituted proceedings for any type
of bankruptcy (whether voluntary or involuntary), made an assignment for the benefit of creditors or commenced or become subject to any similar action or proceeding, and that its participation in this Settlement will not render it insolvent within
the meaning of and/or for the purposes of the United States Bankruptcy Code, including §§ 101 and 547 thereof. 
  
 32. If a case is commenced in respect of i2 or any Insurance Carrier under Title 11 of the United States Code (Bankruptcy), or a trustee, receiver or
conservator is appointed under any similar law, and in the event of the entry of a final order of a court of competent jurisdiction determining the transfer of money to the Gross Settlement Fund or any portion thereof to be a preference, voidable
transfer, fraudulent transfer or similar transaction and any portion thereof is required to be returned, and such amount is not promptly deposited to the Gross Settlement Fund by others, then, at the election of Plaintiffs’ Co-Lead Counsel, the
parties shall jointly move the 
  

 25 

 Court to vacate and set aside the releases given and Judgment entered in favor of the Settling Defendants pursuant to
this Stipulation, which releases and Judgment shall be null and void, and the parties shall be restored to their respective positions in the litigation as of the date a day prior to the date of this Stipulation and any cash amounts in the Gross
Settlement Fund shall be returned as provided in ¶ 28 above. 
  
 33. The parties to this Stipulation intend the Settlement to be a final and complete resolution of all disputes asserted or which could be asserted by the Plaintiffs, the Settlement Class or their attorneys against the Released Parties with
respect to the Settled Claims. Accordingly, Plaintiffs, the Settlement Class and the Settling Defendants agree not to assert in any forum that the litigation was brought by Plaintiffs or defended by the Settling Defendants in bad faith or without a
reasonable basis. The parties hereto shall assert no claims of any violation of Rule 11 of the Federal Rules of Civil Procedure relating to the prosecution, defense, or settlement of the Action. The parties agree that the amount paid and the other
terms of the Settlement were negotiated at arm’s length in good faith by the parties, and reflect a settlement that was reached voluntarily after consultation with experienced legal counsel. 
  
 34. This Stipulation may not be modified or amended, nor may any of its
provisions be waived except by a writing signed by all parties hereto or their successors-in-interest. 
  
 35. The headings herein are used for the purpose of convenience only and are not meant to have legal effect. 
  
 36. The administration and consummation of the Settlement as embodied in this
Stipulation shall be under the authority of the Court and the Court shall retain jurisdiction for the purpose of entering orders providing for awards of attorneys’ fees and expenses to Plaintiffs’ Counsel and enforcing the terms of this
Stipulation. 
  

 26 

 37. The waiver by one party of any breach of this Stipulation by any other party shall not be deemed a
waiver of any other prior or subsequent breach of this Stipulation. 
  
 38. This Stipulation, its exhibits and the Supplemental Agreement constitute the entire agreement among the parties hereto concerning the Settlement of the Action, and no representations, warranties, or inducements have been made by any
party hereto concerning this Stipulation and its exhibits other than those contained and memorialized in such documents. 
  
 39. This Stipulation may be executed in one or more counterparts. All executed counterparts and each of them shall be deemed to be one and the same
instrument provided that counsel for the parties to this Stipulation shall exchange among themselves original signed counterparts. 
  
 40. This Stipulation shall be binding upon, and inure to the benefit of, the successors and assigns of the parties hereto. 
  
 41. The construction, interpretation, operation, effect and validity of this
Stipulation, and all documents necessary to effectuate it, shall be governed by the internal laws of the State of Texas without regard to conflicts of laws, except to the extent that federal law requires that federal law governs. 
  
 42. This Stipulation shall not be construed more strictly against one party
than another merely by virtue of the fact that it, or any part of it, may have been prepared by counsel for one of the parties, it being recognized that it is the result of arm’s-length negotiations between the parties and all parties have
contributed substantially and materially to the preparation of this Stipulation. 
  
 43. All counsel and any other person executing this Stipulation and any of the exhibits hereto, or any related settlement documents, warrant and represent that they have the full authority to do so and that they have
the authority to take appropriate action required or permitted to be taken pursuant to the Stipulation to effectuate its terms. 
  

 27 

 44. Plaintiffs’ Co-Lead Counsel and Settling Defendants’ Counsel agree to cooperate fully with
one another in seeking Court approval of the Order for Notice and Hearing, the Stipulation and the Settlement, and to promptly agree upon and execute all such other documentation as may be reasonably required to obtain final approval by the District
Court of the Settlement. 
  
 DATED: May 7, 2004 
  

			
	 MILBERG WEISS BERSHAD & SCHULMAN LLP

		
	 By:
	 	 /s/ David J. Bershad

	 	 	 David J. Bershad
 Salvatore J. Graziano
 Lawrence D. McCabe
 One Pennsylvania Plaza
 New York, NY 10119
 Tel: 212-594-5300

	
	 JOHNSON & PERKINSON

		
	 By:
	 	 /s/ Dennis J. Johnson

	 	 	 Dennis J. Johnson
 Peter J. McDougall
 1690 Williston Road
 South Burlington, VT 05403
 Tel: 802-862-0030

  

 28 

			
	 GIRARD GIBBS & DE BARTOLOMEO LLP

		
	 By:
	 	 /s/ Daniel C. Girard by AMS

	 	 	 Daniel C. Girard
 Aaron M. Sheanin
 601 California Street, Suite 1400
 San Francisco, CA 94108
 Tel. (415) 981-4800

	
	 Co-Lead Counsel for Plaintiffs

	
	 BROWN McCARROLL LLP

		
	 BY:
	 	 /s/ Robert W. Coleman

	 	 	 Robert W. Coleman
 2001 Ross Avenue, Suite 2000
 Dallas, Texas 75201
 Tel: 214-999-6100
 Fax: 214-999-6170

	
	 -and-

	
	 WILSON SONSINI GOODRICH & ROSATI, P.C.

		
	 BY:
	 	 /s/ John P. Stigi, III

	 	 	 Bruce G. Vanyo
 Keith Eggleton
 John P. Stigi III
 650 Page Mill Road
 Palo Alto, California 94304-1050
 Tel: 650-493-9300
 Fax: 650-493-6811

	
	 Counsel for Defendant i2 Technologies, Inc.

  

 29 

			
	 FULBRIGHT & JAWORSKI L.L.P.

		
	 BY:
	 	 /s/ Michael A. Swartzendruber

	 	 	 Michael A. Swartzendruber
 2200 Ross Avenue, Suite 2800
 Dallas, Texas 75201

	
	 -and-

	
	 FULBRIGHT & JAWORSKI L.L.P.

	 Michael D. Trager
 Richard L. Jacobson
 Michael H. Dardzinski
 801 Pennsylvania Avenue, NW
 Washington, DC 20004-2623

	
	 Counsel for Defendant Sanjiv S. Sidhu

	
	 LYNN, TILLOTSON & PINKR, LLP

		
	 BY:
	 	 /s/ Michael P. Lynn

	 	 	 Michael P. Lynn
 750 North St. Paul Street, Suite 1400
 Dallas, Texas 75201

	
	 -and-

	
	 PROSKAUER ROSE LLP

	 Lionel E. Pashkoff
 1233 20th Street
 Washington, DC 20036-2396

	
	 Counsel for Defendant William M. Beecher

  

 30 

			
	 AKIN GUMP STRAUSS HAUER & FELD LLP

		
	 BY:
	 	 /s/ Edward S. Koppman

	 	 	 Edward S. Koppman
 1700 Pacific Avenue, Suite 4100
 Dallas, Texas 75201-4675
 Tel: 214-969-2800
 Fax: 214-969-4343

	
	 Counsel for Defendant Gregory A. Brady

  

 31

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00067-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00067-of-00352.parquet"}]]