Document:

Exhibit
10.4

 

FIRST AMENDMENT

 

FIRST AMENDMENT (this “Amendment”),
dated as of May 6, 2015, by and among ACI Merchant Systems, LLC, a Pennsylvania limited liability company (“ACI”
and together with each other Person joined from time to time to the Loan Agreement (as defined below) as a borrower, “Borrowers”),
JetPay Corporation, a Delaware corporation (“Parent”), AD Computer Corporation, a Pennsylvania corporation (“AD
Computer”), and Metro Bank (“Lender”).

 

BACKGROUND

 

A.        Borrowers, Parent and Lender are parties
to a Loan and Security Agreement dated as of November 7, 2014 (as amended, modified, replaced, substituted for, superseded or restated
from time to time, the “Loan Agreement”); and

 

B.         Borrowers have requested that Lender modify
the minimum EBITDA financial covenant in the Loan Agreement, and based on information provided by Borrowers, Lender has agreed
to such request, all on the terms and subject to the conditions set forth herein.

 

NOW, THEREFORE, with the foregoing
Background incorporated by reference and for other consideration, the receipt and sufficiency of which is hereby acknowledged,
the parties hereto, intending to be legally bound, hereby agree as follows:

 

1.          Defined Terms. Unless otherwise
defined herein (including in the Background), terms defined in the Loan Agreement and the Loan Documents are used herein as therein
defined.

 

2.          Amendment to Loan Agreement.
Section 6.8(d) of the Loan Agreement is amended and restated to read in full as follows:

 

“d. Minimum
EBITDA –Borrowers shall maintain Consolidated EBITDA as of each fiscal quarter end of not less than the amount set forth
below opposite the applicable fiscal quarter end, measured for the measurement period set forth below:

 

	Fiscal Quarter Ending	 	Consolidated EBITDA	 	 	Measurement Period
	 	 	 	 	 	 
	March 31, 2015	 	$	235,000	 	 	Three months ending March 31, 2015
	 	 	 	 	 	 	 
	June 30, 2015	 	$	710,000	 	 	Six months ending June 30, 2015
	 	 	 	 	 	 	 
	September 30, 2015	 	$	1,460,000	 	 	Nine months ending September 30, 2015

 

    	 

    	 

    

 

3.             Representations and Warranties.
Each Loan Party hereby represents and warrants to Lender that:

 

(a)          There exists no Default or Event of Default
under the Loan Agreement as amended hereby;

 

(b)          The representations and warranties made
by Loan Parties in the Loan Documents are true and correct in all material respects on and as of the date hereof as if made on
and as of the date hereof except to the extent such representations and warranties are made only as of a specific earlier date;

 

(c)          The execution and delivery of this Amendment,
by and on behalf of each Loan Party have been duly authorized by all requisite action on behalf of each Loan Party, and this Amendment
constitutes the legal, valid and binding obligations of each Loan Party, enforceable against such Loan Party in accordance with
its terms, except as enforceability may be limited by applicable bankruptcy, insolvency, fraudulent conveyance, reorganization,
moratorium or similar laws affecting the enforcement of creditors’ rights generally and by general equitable principles (whether
enforcement is sought by proceedings in equity or at law);

 

(d)          The execution, delivery and performance
of this Amendment will not violate any applicable provision of law or judgment, order or regulation of any court or of any public
or governmental agency or authority nor conflict with or constitute a breach of or a default under any material instrument to which
any Loan Party is a party or by which any Loan Party or any of its properties is bound; and

 

(e)          No approval, consent or authorization
of, or registration, declaration or filing with, any governmental or public body or authority, or any trustee or holder of any
indebtedness, is required in connection with the valid execution, delivery and performance by any Loan Party of this Amendment.

 

4.            Conditions Precedent. The
effectiveness of the amendments set forth herein is subject to the fulfillment, to the satisfaction of Lender and its counsel,
of the following conditions precedent:

 

(a)          Loan Parties shall have delivered to
Lender this Amendment, duly completed and executed by the Loan Parties

 

(b)          Payment by Borrowers of all of Lender’s
Expenses, including without limitation, the fees and expenses of Ballard Spahr LLP, in accordance with Section 9.6 of the Loan
Agreement.

 

    	-2-

    	 

    

 

 

(c)          The representations and warranties set
forth in the Loan Agreement shall be true and correct in all material respects on and as of the date hereof, except to the extent
such representations and warranties are made as of a specific earlier date.

 

(d)          No Default or Event of Default shall
have occurred and be continuing under the Loan Agreement as amended hereby.

 

5.            Ratification; References; No Waiver.
Except as expressly amended by this Amendment, the Loan Agreement shall continue to be, and shall remain, unaltered and in full
force and effect in accordance with its terms. All references in the Loan Agreement to “this Agreement,” “hereof,”
“hereto” and “hereunder” shall be deemed to be references to the Loan Agreement as amended hereby, and
all references in any of the Loan Documents to the Loan Agreement shall be deemed to be to Loan Agreement as amended hereby. This
Amendment does not and shall not be deemed to constitute a waiver by Lender of any Default, breach, Event of Default, or of any
of Lender’s other rights or remedies. Each Loan Party hereby agrees that its obligations under the Loan Agreement and Loan
Documents are ratified and confirmed and shall continue in full force and effect and shall continue to cover all Obligations. As
security for the payment of the Obligations, and satisfaction by Borrowers of all covenants and undertakings contained in Loan
Agreement and Loan Documents, each Borrower hereby confirms its prior grant to Lender of a continuing first lien on and security
interest in, upon and to all of such Borrower’s now owned or hereafter acquired, created or arising Collateral, and Parent
hereby confirms its prior grant to Lender of a continuing first lien on and security interest in, upon and to the Pledged Collateral
(as defined in the Pledge Agreement).

 

6.            Affirmation of Guaranty. Parent
and AD Computer each hereby acknowledges and agrees that its Surety and Guaranty Agreement continues unimpaired and in full force
and effect, covers the Obligations as amended hereby and runs to the benefit of Lender and constitutes the valid, binding and enforceable
obligation of such Guarantor, subject to no defense, setoff, counterclaim or deduction of any nature.

 

7.            Release. In consideration
of the execution of this Amendment by Lender, each Loan Party hereby releases Lender and its officers, attorneys, agents and employees
from any liability, suit, damage, claim, loss or expense of any kind or nature whatsoever and howsoever arising that any Loan Party
ever had, now has, or may have against Lender arising out of or relating to the Loan Documents or Lender’s acts or omissions
with respect thereto occurring prior to the date hereof. Each Loan Party further states that it has carefully read the foregoing
release, knows the contents thereof and grants the same as its own free act and deed.

 

8.            Miscellaneous.

 

(a)          Expenses. Loan Parties
agree to pay all of Lender’s reasonable out-of-pocket expenses incurred in connection with the preparation, negotiation and
execution of this Amendment, including, without limitation, the reasonable fees and expenses of Ballard Spahr LLP.

 

    	-3-

    	 

    

 

(b)          Governing Law. THIS AMENDMENT,
AND ALL RELATED AGREEMENTS AND DOCUMENTS, SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE SUBSTANTIVE LAWS OF THE COMMONWEALTH
OF PENNSYLVANIA. THE PROVISIONS OF THIS AMENDMENT AND ALL OTHER AGREEMENTS AND DOCUMENTS REFERRED TO HEREIN ARE TO BE DEEMED SEVERABLE,
AND THE INVALIDITY OR UNENFORCEABILITY OF ANY PROVISION SHALL NOT AFFECT OR IMPAIR THE REMAINING PROVISIONS WHICH SHALL CONTINUE
IN FULL FORCE AND EFFECT.

 

(c)          Successors and Assigns.
The terms and provisions of this Amendment shall be binding upon and shall inure to the benefit of Loan Parties and Lender and
their respective successors and assigns.

 

(d)          Counterparts. Two or more
duplicate originals of this Amendment may be signed by the parties, each of which shall be an original but all of which together
shall constitute one and the same instrument. Delivery of an executed counterpart of a signature page of this Amendment by telecopy
or e-mail shall be effective as delivery of a manually executed counterpart of this Amendment.

 

(e)          Headings. The headings
of any paragraph of this Amendment are for convenience only and shall not be used to interpret any provision hereof.

 

(f)          Modifications. No modification
hereof or any agreement referred to herein shall be binding or enforceable unless in writing and signed by Borrowers and Lender.

 

(g)         Waiver of Jury Trial. EACH
LOAN PARTY AND LENDER EACH HEREBY WAIVE ANY AND ALL RIGHTS EACH MAY HAVE TO A JURY TRIAL IN CONNECTION WITH ANY LITIGATION, PROCEEDING
OR COUNTERCLAIM ARISING WITH RESPECT TO RIGHTS AND OBLIGATIONS OF THE PARTIES HERETO OR UNDER THE LOAN DOCUMENTS OR WITH RESPECT
TO ANY CLAIMS ARISING OUT OF ANY DISCUSSIONS, NEGOTIATIONS OR COMMUNICATIONS INVOLVING OR RELATED TO ANY PROPOSED RENEWAL, EXTENSION,
AMENDMENT, MODIFICATION, RESTRUCTURE, FORBEARANCE, WORKOUT, OR ENFORCEMENT OF THE TRANSACTIONS CONTEMPLATED BY THE LOAN DOCUMENTS.

 

[signature page follows]

 

    	-4-

    	 

    

 

IN WITNESS WHEREOF, the parties hereto have caused this Amendment
to be duly executed and delivered by their proper and duly authorized officers as of the day and year first above written.

 

	 	ACI MERCHANT SYSTEMS, LLC
	 	 	 
	 	By:	/s/ Peter Davidson
	 	Name: 	Peter Davidson
	 	Title:	Secretary
	 	 
	 	JETPAY CORPORATION
	 	 	 
	 	By:	/s/ Peter Davidson
	 	Name: 	Peter Davidson
	 	Title:	Secretary
	 	 
	 	AD COMPUTER CORPORATION
	 	 	 
	 	By:	/s/ Gregory M. Krzemien
	 	Name:	Gregory M. Krzemien
	 	Title:	Treasurer
	 	 
	 	METRO BANK
	 	 	 
	 	By:	/s/ Harry G. Hayman, III
	 	Name:	Harry G. Hayman, III
	 	Title:  	Senior Vice President

 

[Signature Page to First Amendment to ACI
Merchant Loan Documents]Exhibit 104

			
					
						 

				
	
					
						Exhibit 10.4

				

		
			 
		

		
			GLOBAL SETTLEMENT AGREEMENT AND MUTUAL RELEASE
		

		
			This Settlement Agreement (“Settlement Agreement”) is made and entered into as of March 11, 2015 (the “Effective Date”), by and between Vermillion, Inc., a Delaware corporation (formerly known as Ciphergen Biosystems, Inc.), and ASPiRA Labs, a Delaware corporation and wholly owned subsidiary of Vermillion, Inc. (collectively “Vermillion”) on the one hand and Quest Diagnostics Incorporated, a Delaware corporation on the other hand.  Vermillion and Quest Diagnostics are sometimes individually referred to herein as a “Party” and collectively as the “Parties.”  
		

		
			RECITALS
		

		
			WHEREAS, Vermillion, Inc. and Quest Diagnostics entered into a Strategic Alliance Agreement dated July 22, 2005, which the Parties amended in writing through five separate amendments each entitled as follows: Amendment No. 1 to Strategic Alliance Agreement dated as of July 22, 2005; Amendment No. 2 to Strategic Alliance Agreement dated as of October 24, 2008; Amendment to Strategic Alliance Agreement dated as of October 7, 2009; Amendment No. 4 to Strategic Alliance Agreement dated as of September 10, 2010; and Amendment No. 5 to Strategic Alliance Agreement dated as of April 2, 2011 (collectively the “SAA”);
		

		
			WHEREAS, the Parties also entered into a Stock Purchase Agreement dated as of July 22, 2005 whereby Quest Diagnostics acquired shares of Vermillion, Inc.’s common stock;
		

		
			WHEREAS, on or about July 22, 2005 the Parties entered in a Credit Agreement (as amended), Promissory Note and Patent Security Agreement (collectively “Loan Documents”) whereby, among other things, Quest Diagnostics loaned Vermillion, Inc. the sum of $10,000,000 and Vermillion, Inc. provided certain collateral to secure said loan;
		

		
			WHEREAS, the Parties entered into the January 12, 2006 Memorialization Agreement clarifying Quest Diagnostics’ rights to exercise options under the July 22, 2005 Stock Purchase Agreement;
		

		
			WHEREAS, the Parties entered into an August 23, 2007 Securities Purchase Agreement whereby Quest Diagnostics entered into a $2,000,000 subscription for Vermillion, Inc. stock and warrants;
		

		
			WHEREAS, on or about August 29, 2007 the Parties entered into a Registration Rights Agreement concerning the registration of shares under both the Stock Purchase Agreement and the Securities Purchase Agreement;
		

		

		

		 

 

		WHEREAS, the Loan Documents were amended as part of the October 7, 2009 amendment to the SAA;
		

		
			WHEREAS, on September 11, 2009 the FDA cleared Vermillion, Inc.’s OVA1 test that had been developed under the provisions of the SAA and Quest Diagnostics began offering the OVA1 test to patients and paying royalties to Vermillion, Inc. as provided under the SAA;
		

		
			WHEREAS, Quest Diagnostics began making royalty payments to the Regents of the University of California (the “Regents”) after the Regents asserted a claim that the OVA1 test was covered under the pending claims of one or more of its patent applications, which were and are licensed to Quest Diagnostics under an existing agreement with the Regents and which certain of such applications have issued as one or more granted patents;
		

		
			WHEREAS, certain disputes arose between the Parties including, but not limited to, (i) whether Vermillion, Inc. was entitled to a $1,000,000 credit against the amounts due under the Credit Agreement; (ii) whether Vermillion, Inc. was in breach of the Credit Agreement by not paying all amounts due at the maturity date; (iii) whether Quest Diagnostics was in breach of the Patent Security Agreement by not releasing its collateral after Vermillion, Inc.’s demand; (iv) whether Quest Diagnostics had paid the correct amount of royalty payments to Vermillion, Inc. under the SAA; (v) whether Quest Diagnostics or Vermillion, Inc. breached the SAA; (vi) whether Quest Diagnostics could deduct the royalty payments it paid to the Regents from the royalty payments Quest Diagnostics paid to Vermillion, Inc. under the SAA; and (vii) whether Vermillion, Inc. was within their rights to purport to terminate the SAA in 2013;
		

		
			WHEREAS, Quest Diagnostics had made demand on Vermillion, Inc. to remove all restrictive legends including, but not limited to, the Rule 144 legend from the Vermillion, Inc. stock certificates held by Quest Diagnostics so that Quest Diagnostics can freely sell those shares to the public;
		

		
			WHEREAS, contemporaneously with the execution of this Settlement Agreement the Parties are entering into a Testing and Services Agreement in substantially the same form as the document attached hereto as Exhibit A;
		

		
			WHEREAS, contemporaneously with the execution of this Settlement Agreement the Parties are entering into a Non-Exclusive License Agreement in substantially the same form as the document attached hereto as Exhibit B while they negotiate with the Regents for different license terms, which, if successful, will be incorporated into the Non-Exclusive License Agreement by amendment; and 
		

		
			WHEREAS, without any Party admitting any liability to any other Party, the Parties now wish to enter into this Settlement Agreement and completely resolve all known and unknown claims between them including, but not limited to, those recited above.
		

		
			NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows:
		

		
			1.No Admission.  This Settlement Agreement is entered into for purposes of settlement and compromise of the disputed claims.  Nothing contained in this Settlement 
		

		 

 

		Agreement, or done or omitted in connection with this Settlement Agreement, is intended as or shall be construed as an admission of or by any Party of any fault, liability or wrongdoing whatsoever.
		

		
			 
		

		
			2.Vermillion Release.  Vermillion, on their own behalf and on behalf of their affiliates, officers, directors, managers, shareholders, employees, agents and attorneys covenant not to sue and do hereby fully release, discharge Quest Diagnostics and its affiliates, officers, directors, managers, shareholders, employees, agents, and attorneys from any and all liabilities, claims, actions, causes of action or suits, presently asserted or unasserted, accrued or unaccrued, past, present or future, known or unknown of any kind or nature that Vermillion had, now have, or may have, or could claim to have anywhere in the world that arose from the beginning of the world to the Effective Date (collectively “Vermillion Claims”) including, but not limited to, Vermillion Claims that relate in any way to any acts, omissions, statements, or events that occurred at any time before the Effective Date of this Settlement Agreement and that  in any way relate directly or indirectly to the Agreements or to any other agreements entered into by and between the Parties prior to the Effective Date.  The foregoing release is expressly intended to cover and include, without limitation, all claims, past, present or future, known or unknown, suspected or unsuspected, which can or may ever be asserted by successors, assigns, heirs, or otherwise, as the result of the matters herein released, or the effects or consequences thereof.  The foregoing release does not apply to the obligations under this Settlement Agreement or acts or omissions occurring after the Effective Date of this Settlement Agreement including, but not limited to, the obligations under the Testing and Services Agreement and Non-Exclusive License Agreement, each bearing the same effective date as this Settlement Agreement. 
		

		
			 
		

		
			3.Quest Diagnostics Release.  Quest Diagnostics, on its own behalf and on behalf of its affiliates, officers, directors, managers, shareholders, employees, agents and attorneys covenants not to sue and does  hereby fully release, discharge Vermillion and their affiliates, officers, directors, managers, shareholders, employees, agents, and attorneys from any and all liabilities, claims, actions, causes of action or suits, presently asserted or unasserted, accrued or unaccrued, past, present or future, known or unknown of any kind or nature that it had, now has, or may have, or could claim to have anywhere in the world that arose from the beginning of the world to the Effective Date (collectively “Quest Claims”) including, but not limited to, Quest Claims that relate in any way to any acts, omissions, statements, or events that occurred that at any time before the Effective Date of this Settlement Agreement and that in any way relate directly or indirectly to the Agreements or to any other agreements entered into by and between the Parties prior to the Effective Date.  The foregoing release is expressly intended to cover and include, without limitation, all claims, past, present or future, known or unknown, suspected or unsuspected, which can or may ever be asserted by successors, assigns, heirs, or otherwise, as the result of the matters herein released, or the effects or consequences thereof.  The foregoing release does not apply to the obligations under this Settlement Agreement or acts or omissions occurring after the Effective Date of this Settlement Agreement including, but not limited to, the obligations under the Testing and Services Agreement and Non-Exclusive License Agreement, each bearing the same effective date as this Settlement Agreement. 
		

		
			 
		

		
			4.Unknown Claims.  The Parties expressly acknowledge and agree that this Settlement Agreement fully and finally releases and forever resolves all claims either may have 
		

		 

 

		against the other including those that are unknown, unanticipated or unsuspected or that may hereafter arise as a result of the discovery of new and/or additional facts.  The Parties acknowledge and understand the significance and potential consequences of their release of unknown claims.
		

		
			 
		

		
			5.Credits.  As calculated in Paragraph 6 below, Quest Diagnostics shall credit the amounts payable under the Loan Documents and this Settlement Agreement by $30,000 to compensate Vermillion for audit costs incurred in connection with Vermillion’s May 23, 2013 audit request.  Quest Diagnostics shall also provide a credit of up to $100,000 with respect to any royalty payments due under the Non-Exclusive License Agreement as more fully set forth therein.
		

		
			 
		

		
			6.Payment.  Within one day of the Effective Date, Vermillion, Inc. shall pay to Quest Diagnostics in good funds the cash sum of $1,069,000 ($1,099,000 due under the Loan Documents less the $30,000 Audit Fee) (the “Payment”) pursuant to the following wire instructions.  Said funds shall be wired to Quest Diagnostics by 10:00 a.m. Eastern Time for delivery on the day following the Effective Date as follows: 
		

		
			Bank Name: Bank of New York
Bank Address: One Wall Street, New York, NY 10286
ABA Number: 021000018
Account Number 8901114308
Account Name: Quest Diagnostics Incorporated
Account Address: 3 Giralda Farms, Madison, NJ 07940
Swift Code:  IRVTUS3N 
		

		
			Vermillion, Inc. shall provide written confirmation that the Payment has been wired to Quest Diagnostics before Quest Diagnostics shall deliver its executed copy of this Settlement Agreement to Vermillion.  
		

		
			 
		

		
			7.Delivery
		

		
			 
		

		
			7.1.    Upon receipt of the Payment by Quest Diagnostics, Quest Diagnostics shall deliver to Vermillion a UCC-3 statement releasing all collateral under the Loan Documents in substantially the form attached hereto as Exhibit C. 
		

		
			7.2.    On the Effective Date Quest Diagnostics shall deliver all certificates representing all of Vermillion, Inc. common stock held by Quest Diagnostics (“Quest Shares”) to Vermillion, Inc.  Recognizing that time is of the essence, Vermillion, Inc. shall deliver, as soon as reasonably possible, new original stock certificates representing the Quest Shares free and clear of all restrictive legends and otherwise in a form that permits the unrestricted sale of the Quest Shares to Vermillion’s Transfer Agent, together with such signatures and acknowledgements as the Transfer Agent may require, with direction (i) to register the Quest Shares with the Depository Trust Company in the customary form and (ii) to credit the brokerage account of Quest Diagnostics Clinical Laboratories, Inc., a wholly owned subsidiary of Quest Diagnostics, as beneficial owner.  Quest Diagnostics shall identify the specific brokerage account location and number on or after the Effective Date.  Subject to Paragraph 8, Quest Diagnostics may take all steps Quest Diagnostics deems appropriate to facilitate the trading of Quest Shares. 
		

		 

 

		
			7.3.    Contemporaneously with the execution and delivery of this Settlement Agreement, each Party shall execute and deliver to the other a Testing and Services Agreement in substantially the same form as the document attached hereto as Exhibit A.
		

		
			 
		

		
			7.4.    Contemporaneously with the execution and delivery of this Settlement Agreement, each Party shall execute and deliver to the other a Non-Exclusive License Agreement in substantially the same form as the document attached hereto as Exhibit B.  The Parties shall also make a good faith effort to reach an agreement with the Regents relating to a Non-Exclusive License Agreement for at least 90 days from the Effective Date.  If such agreement is reached, the Parties shall modify the Non-Exclusive License Agreement accordingly.
		

		
			 
		

		
			8.Quest Shares Purchase Program and Lockup.  
		

		
			 
		

		
			8.1.  Vermillion, Inc. shall make a good faith effort to introduce potential purchasers of the Quest Shares to Quest Diagnostics.
		

		
			 
		

		
			8.2.  During the 90 days following the Effective Date, Quest Diagnostics shall not offer, sell, contract to sell, pledge, grant any option to purchase or otherwise dispose of any Quest Shares.  At the expiration of the 90 day period, Quest Diagnostics may sell the Quest Shares in its sole and absolute discretion.
		

		
			 
		

		
			9.Return or Destruction of Customer Information.  Within 30 days of the Effective Date Vermillion shall identify and return or destroy all records and materials including electronic data in Vermillion’s possession or control containing Quest Diagnostics’ customer information, including, but not limited to: name, location, marketing or sales data (both general data and data related to a specific customer), documents relating to one or more customers, past orders, order histories, communications to and from customers in all forms (electronic, email, paper, voice, etc.), financial or pricing information, business, sales or marketing plans, sales or marketing techniques, projections, other business information, confidential information belonging to any customer, billing and collection reports and histories, any materials that Vermillion or Quest Diagnostics received from a Quest customer, all summaries of any and all such information, and all other customer information (“Quest Customer Information”), provided that Vermillion may retain (i) an archival copy of such Quest Customer Information, (ii) any and all such Quest Customer Information as it is required to retain by applicable laws and regulations, and (iii) the last electronic copy of customer level information received by Vermillion for the period ending June 30, 2014, which shall be returned or destroyed within 30 days after Vermillion publically reports their 2015 financial results.  Except as provided above, within the same 30 day time period and such later period as specified above under (iii), Vermillion shall also deliver a written, unconditional certification under oath that Vermillion have permanently destroyed all electronic data containing Quest Customer Information and that all other Quest Customer Information has also been destroyed or returned to Quest Diagnostics.  A copy of this certificate is attached here to as Exhibit D.  
		

		
			 
		

		
			10.Termination of Past Agreements.  Notwithstanding any notice or any other contract provisions to the contrary including, but not limited to, contract provisions purporting to 
		

		 

 

		provide for the survival of obligations after termination, the Agreements and all other agreements entered into by and between the Parties prior to the Effective Date are hereby terminated as of the Effective Date and are no longer of any force or effect.  
		

		
			 
		

		
			11.Mutual Representations and Warranties.  Each Party and each Person signing this Settlement Agreement on behalf of a Party represents and warrants to the other that:
		

		
			 
		

		
			11.1Neither Party has entered this Settlement Agreement in reliance upon any promise, inducement, agreement, statement, or representation other than those contained in this Settlement Agreement including, but not limited to, any listed in the Recitals.
		

		
			 
		

		
			11.2Each Party has the full right and power to enter into this Settlement Agreement, and the person executing this Settlement Agreement has the full right and authority to enter into this Settlement Agreement on behalf of such Party, and the full right and authority to bind such Party to the terms and obligations of this Settlement Agreement.
		

		
			 
		

		
			11.3The Parties have been represented by competent and independent counsel of their own choice throughout all negotiations preceding the execution of the Settlement Agreement, and have executed this Settlement Agreement upon the advice of said competent and independent counsel regarding the meaning and legal effect of this Settlement Agreement, and regarding the advisability of making the agreements provided for herein.
		

		
			 
		

		
			12.Notices.  All notices and requests that are required or permitted to be given in connection with this Settlement Agreement shall be deemed given as of the day they are received either by messenger, delivery service, or in the United States of America mails, postage prepaid, certified or registered, return receipt requested, and addressed as follows, or to such other address as the Party to receive the notice or request so designates by written notice to the other:
		

		
			 
		

			
					
						To Quest Diagnostics:

					
						Quest Diagnostics Incorporated
3 Giralda Farms
Madison, New Jersey 07940
Attention: General Counsel
Telephone: (973) 520-2177
Facsimile: (610) 271-8719
Email: Michael.e.prevoznik@questdiagnostics.com

					
					
						To Vermillion:

					
						Vermillion, Inc.
12117 Bee Caves Rd
Building III, Suite 100
Austin, Texas 78738
Attention: Valerie Palmieri
Telephone: (512) 519-0400
Facsimile: (512) 439-6980
Email: vpalmieri@vermillion.com

				

		 

 

			
					
						and

					
						Daniel C. Minteer
Duane Morris LLP
750 B Street, Suite 2900
San Diego, California 92101
Telephone: 619-744-2286
Facsimile: 619 923 3554
Email: dminteer@duanemorris.com

					
					
						and

					
						Christopher J. Denn
Goodwin Procter LLP
53 State Street
Boston, MA 02109
Tel:  (617) 570-1000
Fax: (617) 523-1231
Email:cdenn@goodwinprocter.com

				

		
			13.Governing Law.  This Settlement Agreement shall be construed and controlled by the internal laws of the State of Delaware (excluding conflict of laws principles) and applicable federal laws, and each Party consents to exclusive jurisdiction and venue in the State of Delaware.  Process may be served on either Party in the manner authorized by applicable law or court rule.
		

		
			 
		

		
			14.Costs, Expenses, and Attorneys’ Fees.  Except as already paid, each Party shall bear its own costs, expenses and attorneys’ fees incurred in connection with the matters set forth in the recitals, the making of this Settlement Agreement, and its performance under this Settlement Agreement. 
		

		
			 
		

		
			15.Settlement Agreement Binding.   This Settlement Agreement shall be binding upon and inure to the benefit of the Parties and their respective owners, shareholders, affiliates, subsidiaries, officers, directors, agents, assigns, and successors.  
		

		
			 
		

		
			16.No Construction Against the Drafter.  This Settlement Agreement has resulted from negotiations between the Parties and their respective legal counsel, and each Party acknowledges that it has had the opportunity to negotiate modifications to the language of this Settlement Agreement.  Accordingly, each Party agrees that in any dispute regarding the interpretation or construction of this Settlement Agreement, no statutory, common law or other presumption shall operate in favor of or against any Party hereto by virtue of its role in drafting or not drafting the terms and conditions set forth herein.
		

		
			 
		

		
			17.Jury Trial Waiver.  Each Party hereby waives its right to a jury trial as follows: 
		

		
			 
		

		
			TO THE EXTENT ALLOWED BY LAW, THE PARTIES HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVE THE RIGHT EITHER OF THEM MAY HAVE TO A TRIAL BY JURY WITH RESPECT TO (i) ANY AND ALL ISSUES PRESENTED IN ANY ACTION, PROCEEDING, CLAIM OR COUNTERCLAIM BROUGHT BY ANY OF THE PARTIES HERETO AGAINST ANY OTHER PARTY OR ITS SUCCESSORS WITH RESPECT TO ANY MATTER ARISING OUT OF OR IN CONNECTION WITH THIS SETTLEMENT AGREEMENT, AND/OR (ii) ANY CLAIM FOR INJURY OR DAMAGE, AND/OR (iii) ANY EMERGENCY OR STATUTORY REMEDY.  THIS WAIVER BY THE PARTIES HERETO OF ANY RIGHT ANY OF THEM HAVE TO A TRIAL BY JURY HAS BEEN 
		

		 

 

		NEGOTIATED AND IS AN ESSENTIAL ASPECT OF THIS SETTLEMENT AGREEMENT.
		

		
			18.Severability.  If any provision of this Settlement Agreement shall be held by a court of competent jurisdiction to be illegal, invalid or unenforceable or otherwise in conflict with law, then the remaining provisions shall remain in full force and effect.  If any provision(s) of this Settlement Agreement are deemed not enforceable, they shall be deemed modified to the extent necessary to make them enforceable, in such manner as best reflects and preserves the intent of the provision(s) in question.
		

		
			 
		

		
			19.Counterparts.  This Settlement Agreement may be executed in any number of counterparts and by the different Parties on separate counterparts and each such counterpart shall be deemed to be an original, but all such counterparts shall together constitute but one and the same Settlement Agreement.  Execution of this Settlement Agreement may be accomplished by signing this Settlement Agreement and transmitting the signature page to opposing counsel by facsimile or email.  The Parties so executing and delivering shall promptly thereafter deliver signed originals and at least the signature page(s) to the other at the addresses listed above in Paragraph 12, but no failure to do so shall affect the validity or enforceability of this Settlement Agreement.
		

		
			 
		

		
			20.Headings.  Headings, paragraph titles or captions contained herein are inserted as a matter of convenience and for reference, and in no way define, limit, extend, or describe the scope of this Settlement Agreement or any provision hereof.  
		

		
			 
		

		
			21.Waiver.  No waiver of any provision of this Settlement Agreement shall be deemed or shall constitute a waiver of any other provision, whether or not similar, nor shall any waiver constitute a continuing waiver unless expressly stated in writing by the Party making the waiver.  No waiver of any provision shall be binding in any event unless executed in writing by the Party making the waiver.
		

		
			 
		

		
			22.Entire Agreement.  This Settlement Agreement, the Testing and Services Agreement and, if executed, the Non-Exclusive License Agreement constitute the entire agreement between the Parties with respect to the subject matter hereof, and supersedes all prior and contemporaneous written or oral agreements or communications as to such subject matter, all of which are merged and fully integrated into this Settlement Agreement.  
		

		
			 
		

		
			23.Amendments.  The Parties agree that any amendments or modifications to this Settlement Agreement shall be deemed null and void unless such amendments and modifications are in writing, specifically refer to this Settlement Agreement and are signed by authorized representatives of all Parties.
		

		
			 
		

		
			24.Future Cooperation.  The Parties agree to perform such further acts and execute and deliver any and all further documents that may reasonably be necessary to effectuate the purpose of this Settlement Agreement.
		

		
			 
		

		
			25.Confidentiality of this Settlement Agreement.  From and after the Effective Date, no Party shall disclose the terms of this Settlement Agreement except: (i) with the prior 
		

		 

 

		written consent of the other Party (including the public statement referenced below); (ii) to any governmental body having jurisdiction and specifically requiring such disclosure; (iii) for the purposes of disclosure in connection with the Securities and Exchange Act of 1934, as amended, the Securities Act of 1933, 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) to a Party’s accountants, legal counsel, tax advisors and other financial, legal and other professional advisors, subject to obligations of confidentiality and/or privilege at least as stringent as those contained herein; (v) in response to a valid subpoena or as otherwise may be required by law or as required during the course of litigation; and (vi) with obligations of confidentiality at least as stringent as those contained herein, to a counterparty in connection with a merger, acquisition, sale of patents, financing or similar transaction.  If a Party is required by law to produce this Settlement Agreement in response to a valid subpoena or as otherwise required by law, the Party will give advance notice within 48 hours of receiving the subpoena to the other Parties to this Settlement Agreement so that they can take steps to seek a protective order.
		

		
			 
		

		
			26.Other Confidential Information.  To the extent any Party to this Settlement Agreement has the Confidential Information of any other Party as of the Effective Date in its possession or control that it did not return or destroy as provided in Paragraph 9 above, the Parties shall maintain that Confidential Information in a manner as provided in Article 11 of the SAA, the terms of which are hereby attached hereto as Exhibit E and expressly incorporated into this Settlement Agreement including, but not limited to, the definition of “Confidential Information.”  
		

		
			 
		

		
			27.Press Release.  On the Effective Date the Parties shall issue the press release announcing the existence of this Settlement Agreement as set forth in the press release attached hereto as Exhibit F.  
		

		

		

		 

 

		
		

		
			 
		

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

			
					
						 

					
					
						 

				
	
					
						QUEST DIAGNOSTICS INCORPORATED 

					
					
						VERMILLION, INC.

				
	
					
						By:  /s/ Wilson Conde

					
					
						By:  /s/ Valerie Palmieri           

				
	
					
						Name (print):  Wilson Conde

					
					
						Name (print):  Valerie Palmieri

				
	
					
						Title:  Vice President, Strategic Allicances & Clinical Franchise Business Development

					
					
						Title:  President & CEO

				

		
			 
		

			
					
						 

					
					
						 

				
	
					
						 

					
					
						ASPIRA LABS

				
	
					
						 

					
					
						By:  /s/ Eric Schoen

				
	
					
						 

					
					
						Name (print):  Eric Schoen

				
	
					
						 

					
					
						Title:  Secretary & Treasurer

				

		
			 
		

		
			 
		

		

		

		 

 

		
		

		
			EXHIBIT A
		

		
			 
		

		
			 
		

		
			TESTING AND SERVICES AGREEMENT
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		

		

		 

 

		
		

		
			EXHIBIT B
		

		
			 
		

		
			 
		

		
			NON-EXCLUSIVE LICENSE AGREEMENT
		

		
			 
		

		
			 
		

		
			 
		

		

		

		 

 

		
		

		
			EXHIBIT C
		

		
			 
		

		
			 
		

		
			UCC-3
		

		
			 
		

		
			 
		

		

		

		 

 

		
		

		
			EXHIBIT D
		

		
			 
		

		
			 
		

		
			 
		

		
			CUSTOMER INFORMATION CERTIFICATE
		

		
			 
		

		
			 
		

		
			 
		

		

		

		 

 

		
		

		
			EXHIBIT E
		

		
			 
		

		
			 
		

		
			CONFIDENTIALITY PROVISION
		

		
			 
		

		

		

		 

 

		
		

		
			EXHIBIT F
		

		
			 
		

		
			 
		

		
			PRESS RELEASE

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