Document:

EX-10.1

LEASE MODIFICATION #3

THIS LEASE MODIFICATION #3 (“Lease Modification #3”) is entered into as of the 2nd day of
March, 2011, by and between Plainsboro Associates, a New Jersey general partnership (“Landlord”),
and Integra LifeSciences Corporation, a Delaware corporation (“Tenant”). The following statements
are a material part of Lease Modification #3:

WITNESSETH:

WHEREAS, American Biomaterials Corporation, a Virginia corporation, (“ABC”), entered into a
Lease Agreement dated April 16, 1985 which was subsequently modified and amended pursuant to the
Consent Order Approving Settlement dated October 14, 1988, entered in the United States Bankruptcy
Court for the District of New Jersey (the “Consent Order”) (together with the Lease Agreement, the
“ABC Lease”) as tenant therein, with Landlord covering approximately 10,020 square feet of space at
the address of 105 Morgan Lane, Township of Plainsboro, County of Middlesex, State of New Jersey as
more particularly described in Article I, Section 1.01 of said ABC Lease (“Premises A”);

WHEREAS, Helitrex, Inc., a New Jersey corporation and wholly owned subsidiary of ABC,
(“Helitrex”), entered into a Lease Agreement dated October 4, 1983 which was subsequently modified
and amended pursuant to Letter Amendments and/or Lease Modification Agreements dated October 4,
1983, November 2, 1983 and September 1984, and the Consent Order (collectively the “Helitrex
Lease”) as tenant therein, with Landlord covering approximately 14,668 square feet of space located
on Morgan Lane, Township of Plainsboro, County of Middlesex, State of New Jersey as more
particularly described in Article I, Section 1.01 of said Helitrex Lease (“Premises B”);

WHEREAS, ABC assigned the ABC Lease and Helitrex assigned the Helitrex Lease to Colla-Tec,
Inc., a Delaware corporation (“Colla-Tec”) pursuant to the Order Confirming the Amended Plan of
Reorganization entered by the United States Bankruptcy Court on September 30, 1988, and Colla-Tec
accepted said assignment and assumed ABC’s and Helitrex’s obligations thereunder arising from and
after November 2, 1988 and Landlord gave its consent to such assignment (The ABC Lease and Helitrex
Lease are sometimes collectively referred to as the “Leases”);

WHEREAS, on or about November 1, 1992, Colla-Tec and Landlord further amended the Leases
(“Lease Modification #1”);

WHEREAS, Colla-Tec was merged into Tenant and by virtue of the merger Tenant assumed all
Colla-Tec’s obligations, rights and responsibilities under the Leases and Lease Modification #1;

WHEREAS, on or about October 28, 2005, Tenant and Landlord further amended the Leases and
Lease Modification #1 by entering into Lease Modification #2 (“Lease Modification #2”); and

WHEREAS, Landlord and Tenant desire by this Lease Modification #3 to amend and supercede all
prior amendments and modifications to the Leases, including those set forth in Lease Amendment #1
and Lease Amendment #2.

NOW, THEREFORE, in consideration of the mutual agreements, covenants, and mutual
representations herein contained and those contained in the Lease and in reliance thereon, the
parties intending to be legally bound hereby mutually agree as follows:

1. Tenant as the successor in interest to Colla-Tec agrees to be bound by the terms of the
Leases as modified by this Lease Modification #3. The term “Tenant” as referred to in the Leases
shall mean Integra LifeSciences Corporation.

AS TO THE HELITREX LEASE

2. Article II Section 2.01 of the Helitrex Lease shall be modified and amended to provide that
the Term of the Lease and the demise of the Demised Premises shall be extended so that the same
shall now terminate at midnight on October 31, 2017.

3. Article III of the Helitrex Lease shall be deemed revoked and deleted in its entirety and
the following substituted in place thereof:

“ARTICLE III

RENT

Section 3.01. The tenant shall pay to the Landlord during the Term rent in the
amount of Three Million Four Hundred and Thirteen Thousand Nine Hundred Seventy Six Dollars
and Ninety Cents ($3,413,976.90) payable in such coin or currency of the United States of
America as at the time of payment shall be legal tender for payment of public and private
debts.

Section 3.02. The rent shall accrue at the yearly rates and shall be payable
in advance on the first of each calendar month during the term in the installments as
follows:

	 	 	 	 	 	 	 	 	 
	LEASE YEAR

	 	ANNUAL
	 	MONTHLY

	 

	 	 	 	 	 	 	 	 
	1 through 5

	 	$	110,010.00	 	 	$	9,167.50	 

(11/1/92 to 10/31/97)

at $7.50 per sq. foot

	 	 	 	 	 
	6 through 10

(11/1/97 to 10/31/2002)

at $8.50 per sq. foot

11 through 15

(11/1/2002 to 10/31/2007)

at $9.36 per sq. foot

	 	$124,678.00

$137,292.48

	 	$10,389.83

$11,441.04

	16 through 20

(11/1/2007 to 10/31/2012)

at $10.16 per sq. foot

	 	$149,026.88

	 	$12,418.90

	21 through 25

(11/1/2012 to 10/31/2017)

at $11.03 per sq. foot

	 	$161,788.04

	 	$13,482.34

The rent shall be payable at the office of the Landlord, C/o Keller Property
Management, Inc 163 Nassau Street, Princeton New Jersey 08542 or as may otherwise be
directed by notice from the Landlord to Tenant.

Section 3.03. The Tenant shall, and will, during the term, well and truly pay,
or cause to be paid, to the Landlord, the monthly payments of rent as herein provided and
all other sums that may become due and payable by the Tenant, hereunder, at the time and in
the manner herein provided; and all other sums due and payable by the Tenant hereunder may,
at the Landlord’s option, be deemed to be, and treated as, additional rent, and added to
any fixed rent due and payable by the Tenant hereunder, and, in the event of nonpayment of
such other sums, the Landlord shall have all the rights and remedies herein provided for in
the case of the nonpayment of rent, or of a breach of any covenant to be performed by the
Tenant.

Section 3.04. The rent payable by the Tenant pursuant to this Lease is
intended to be triple net to the Landlord and all other charges and expenses imposed upon
the Demised Premises or incurred in connection with its use, occupancy, care, repair,
maintenance, operation and control, including but not limited to the charges and expenses
payable pursuant to Articles VII and VIII of this Lease, shall be paid by the Tenant,
excepting liens resulting from acts of omissions of the Landlord and other payments to be
paid or obligations undertaken by the Landlord as specifically provided in this Lease.”

4. Article IV Sections 4.01 through and inclusive of 4.06 of the Helitrex Lease shall be
deemed revoked and deleted in their entirety.

5. Article IX Section 9.02 shall be modified and amended to provide that Tenant, not Landlord,
shall be obligated, at its own cost and expense, for all structural repairs required to or
otherwise in connection with the Demised Premises and that portion of the Building of which the
same forms a part.

6. Article IX Section 9.04 of the Helitrex Lease shall be modified and amended to provide that
Tenant shall have the right first to renovate, alter, add to and/or improve the Demised Premises
without any requirement of Landlord’s consent. If Tenant elects to make any renovations,
alterations, additions and/or improvements to the Demised Premises, or to the Building of which the
same is a part, Tenant shall, comply, at its sole cost and expense, with all governmental laws,
ordinances, rules and regulations applicable to any such renovations, alterations, additions and/or
improvements and obtain, likewise at its sole cost and expense, all required governmental
approvals, building permits, licenses and certificates, to include a certificate of occupancy, in
connection therewith. Landlord and Tenant agree that in no event shall the fixed rent reserved in
Article III be increased or decreased as a result of any renovations, alterations, additions or
improvements constructed by or at the expense of Tenant.

Notwithstanding the foregoing, the Tenant shall, if requested by Landlord in writing not less
than 90 days prior to the expiration of the Term, and at Tenant’s cost and expense, remove its
laboratory equipment and related improvements at the expiration or sooner termination of the Term
and make such repairs and/or restoration as may be required as a result of such removal thereof.

7. Article IX Sections 9.06 and 9.07 of the Helitrex Lease shall be deemed revoked and deleted
in their entirety.

8. Article XIV Section 14.01(A) of the Helitrex Lease shall be deemed revoked and deleted in
its entirety and the following substituted in place thereof:

“(A) The Tenant shall default in making any payment of rent or any additional rent on
the date on which the same shall become due and payable and such default shall continue for
a period of ten (10) days after written notice thereof from the Landlord to the Tenant; or”

9. Article XXIII of the Helitrex Lease shall be deemed revoked and. deleted in its entirety
and the following substituted in place thereof:

“Section 23.01: Landlord and Tenant each represents to the other that they
have dealt with no real estate broker or sales person other than Morford Dodds Realty, Inc.
(successor to Keller Dodds & Woodworth, Inc. and Keller Realty Associates, Inc.) in
connection with the extension/modification which is the subject matter of this Agreement.
Landlord, not Tenant, shall be obligated to pay the commissions, if any, which may be due
and payable to said broker pursuant to a separate agreement as and between the same.
Landlord and Tenant agree to indemnify and hold the other harmless from and against all
claims for commissions and other expenses incurred as a result of facts inconsistent with
the representations herein made.”

10. Article XXVIII of the Helitrex Lease shall be deemed revoked and deleted in its entirety.

11. Article XXIX of the Helitrex Lease shall be deemed revoked and deleted in its entirety.

AS TO THE ABC LEASE

12. Article II Section 2.01 of the ABC Lease shall be modified and amended to provide that the
Term of the Lease and the demise of the Demised Premises shall be extended so that the same shall
now terminate at midnight on October 31, 2017.

13. Article III of the ABC Lease shall be deemed revoked and deleted in its entirety and the
following substitute in place thereof:

“ARTICLE III

Rent

Section 3.01. The Tenant shall pay to the Landlord during the Term rent in the
amount of Two Million Three Hundred Thirty Two Thousand One Hundred Fifty Five and No Cents
($2,332,155.00) payable in such coin or currency of the United States of America as at the
time of payment shall be legal tender for the payment of public and private debts.

Section 3.02. The rent shall accrue at the yearly rates and shall be payable
in advance on the first day of each calendar month during the term in the installments as
follows:

	 	 	 	 	 
	LEASE YEAR

	 	ANNUAL
	 	MONTHLY
	1 through 5

(11/1/92 to 10/31/97)

at $7.50 per sq. foot

	 	$75,150.00

	 	$6,262.50

	6 through 10

(11/1/97 to 10/31/2002)

at $8.50 per sq. foot

	 	$85,170.00

	 	$7,097.50

	11 through 15

(11/1/2002 to 10/31/2007)

at $9.36 per sq. foot

	 	$93,787.20

	 	$7,815.60

	16 through 20

(11/1/2007 to 10/31/2012)

at $10.16 per sq. foot

	 	$101,803.20

	 	$8,483.60

	21 through 25

(11/1/2012 to 10/31/2017)

at $11.03 per sq. foot

	 	$110,520.60

	 	$9,210.05

The rent shall be payable at the office of the Landlord, C/o Keller Property
Management, Inc 163 Nassau Street, Princeton New Jersey 08542 or as may otherwise be
directed by notice from Landlord to Tenant.

Section 3.03. The Tenant shall, and will, during the term, well and truly pay,
or cause to be paid, to the Landlord, the monthly payment of rent as herein provided and
all other sums that may become due and payable by the Tenant, hereunder, at the time and in
the manner herein provided; and all other sums due and payable by the Tenant hereunder may,
at the Landlord’s option, be deemed to be, and treated as, additional rent, and added to
any fixed rent due and payable by the Tenant hereunder, and, in the event of nonpayment of
such other sums, the Landlord shall have all the rights and remedies herein provided for in
the case of the nonpayment of rent, or of a breach of any covenant to be performed by the
Tenant.

Section 3.04. The rent payable by the Tenant pursuant to this Lease is
intended to be triple net to the Landlord and all other charges and expenses imposed upon
the Demised Premises or incurred in connection with its use, occupancy, care, repair,
maintenance, operation and control, including but not limited to the charges and expenses
payable pursuant to Articles VII and VIII of this Lease, shall be paid by the Tenant,
excepting liens resulting from acts of omissions of the Landlord and other payments to be
paid or obligations undertaken by the Landlord as specifically provided in this Lease.”

14. Article V of the ABC Lease shall be deemed revoked and deleted in its entirety.

15. Article X Section 10.01 of the ABC Lease shall be modified and amended to provide that
Tenant, not Landlord, shall be obligated, at its own cost and expense, for all structural repairs
required to or otherwise in connection with the Demised Premises and that portion of the Building
of which the same forms a part.

16. Article X Section 10.04 of the ABC Lease shall be modified and amended to provide that
Tenant shall have the right to renovate, alter, add to and/or improve the Demised Premises without
any requirement of Landlord’s consent. If Tenant elects to make any renovations, alterations,
additions and/or improvements to the Demised Premises, or to the Building of which the same is a
part, Tenant shall, comply, at its sole cost and expense, with all governmental approvals, building
permits, licenses and certificates, to include a certificate of occupancy, in connection therewith.
Landlord and Tenant agree that in no event shall the fixed rent reserved in Article III be
increased or decreased as a result of any renovations, alterations, additions or improvements
constructed by or at the expense of Tenant.

Notwithstanding the foregoing, the Tenant shall, if requested by Landlord in writing not less
than 90 days prior to the expiration of the Term, and at Tenant’s cost and expense, remove its
laboratory equipment and related improvements at the expiration or sooner termination of the Term
and make such repairs and/or restoration as may be required as a result of such removal thereof.

17. Article X Section 10.06 of the ABC Lease shall be deemed revoked and deleted in its
entirety.

18. Article XV Section 15.01(A) of the ABC Lease shall be deemed revoked and deleted in its
entirety and the following substituted in place thereof:

“(A) The Tenant shall default in making any payment of rent or any additional rent on
the date on which the same shall become due and payable and such default shall continue for
a period of ten (10) days after written notice thereof from the Landlord to the Tenant; or”

19. Article XXIV Section 24.01 of the ABC Lease shall be deemed revoked and deleted in its
entirety and the following substituted in place, thereof:

“Section 23.01: Landlord and Tenant each represents to the other that they
have dealt with no real estate broker or sales person other than Morford Dodds Realty, Inc.
(successor to Keller, Dodds & Woodworth, Inc. and Keller Realty Associates, Inc.) in
connection with the extension/modification which is the subject matter of this Agreement.
Landlord, not Tenant, shall be obligated to pay commissions, if any, which may be due and
payable to said broker pursuant to separate agreement as and between the same. Landlord and
Tenant agree to indemnify and hold the other harmless from and against all claims for
commissions and other expenses incurred as a result of facts inconsistent with the
representations herein made.”

20. Article XXIX of the ABC Lease shall be deemed revoked and deleted in its entirety.

21. Article XXXI of the ABC Lease shall be deemed revoked and deleted in its entirety.

22. Article XXXII of the ABC Lease shall be deemed revoked and deleted in its entirety;

AS TO BOTH THE HELITREX AND

ABC LEASES

23. The Tenant is hereby granted options to simultaneously renew both the Helitrex Lease and
ABC Lease together each for additional terms of (i) fifteen (15) years covering the period from
November 1, 2017 through October 31, 2032 (“First Option”); (ii) five (5) years covering the period
from November 1, 2032 through October 31, 2037 (“Second Option”); and (iii) five (5) years covering
the period from November 1, 2037 through October 31, 2042 (“Third Option”) upon the following terms
and conditions:

(A) At the time of the exercise of any such option to renew and at the time of renewal, the
Tenant shall not be in default in accordance with the terms and provisions of either of the Leases
as amended by this Lease Modification #3 and shall be in possession of the Demised Premises
pursuant to each such Lease.

(B) Written notice of the exercise of the First Option must be sent to the Landlord and
received by Landlord at least nine (9) months before the expiration of the previous term (i.e.
notice for First Option must be given and received by January 31, 2017). Written notice of exercise
of the Second Option and the Third Option must be sent to the Landlord and received by the Landlord
at least nine (9) months before the expiration of the previous term or extended term. Such written
notice by Tenant, upon receipt by the Landlord shall be irrevocable and shall bind Tenant to the
terms of the Leases and this Lease Modification #3 for the applicable renewal term.

AS TO THE HELITREX LEASE

The rent for the applicable renewal term shall accrue at yearly rates and shall be payable in
advance on the first day of each calendar month during the applicable renewal term in installments
as follows:

	 	 	 	 	 	 	 	 	 
	LEASE YEAR

	 	ANNUAL
	 	MONTHLY

	 

	 	 	 	 	 	 	 	 
	26 through 40

	 	$	175,575.96	 	 	$	14,631.33	 

(11/1/2017 to 10/31/2032)

at $11.97 per sq. foot

41 through 45 at the Fair Market Rental Rate (as defined below) of Premises B, but not less than
the Rent for the previous lease term.

(11/1/2032 to 10/31/2037)

46 through 50 at the Fair Market Rental Rate (as defined below) of Premises B, but not less than
the Rent for the previous lease term.

(11/1/2037 to 10/31/2042)

AS TO THE ABC LEASE

The rent for the applicable renewal term shall accrue at yearly rates and shall be payable in
advance on the first day of each calendar month during the applicable renewal term in installments
as follows:

	 	 	 	 	 	 	 	 	 
	LEASE YEAR

	 	ANNUAL
	 	MONTHLY

	 

	 	 	 	 	 	 	 	 
	26 through 40

	 	$	119,939.40	 	 	$	9,994.95	 

(11/1/2017 to 10/31/2032)

at $11.97 per sq. foot

41 through 45 (11/1/2032 to 10/31/2037)

at the Fair Market Rental Rate (as defined below) of Premises A, but not less than the Rent for the
previous lease term.

46 through 50 (11/1/2037 to 10/31/2042)

at the Fair Market Rental Rate (as defined below) of Premises A, but no less than the Rent for the
previous term.

(C) During such renewal term all of the terms and conditions of each Lease, as amended by this
Lease Modification #3, excluding basic rent, shall apply.

(D) The determination as to current “Fair Market Rental Rate” as provided for above shall
commence with Landlord providing to Tenant in writing Landlord’s opinion as to the fair market
value rental for the Helitrex Lease and ABC Lease (“Landlord’s Opinion”). If the Tenant agrees with
Landlord’s Opinion, Landlord’s Opinion shall be the Fair Market Rental Rate. If the Tenant’s
disagree with Landlord’s Opinion, the parties shall in good faith negotiate for a period of thirty
(30) days thereafter to try to agree upon the rent for the applicable renewal term. If the parties
are able to agree upon the rent for the applicable renewal term, the agreed upon rent shall be the
Fair Market Rental Rate. If the parties are unable to agree upon the rent for such applicable
renewal term, then the Fair Market Rental Rate shall be determined by appraisal as of a date no
more than six (6) months prior to the commencement of the applicable renewal term. In making such
determination, no consideration shall be given to the value of any facility additions or
improvements or special purpose renovations, such as clean rooms and the like, paid for by Tenant.
Landlord and Tenant shall in good faith try to agree upon a single appraiser, licensed as such in
the State of New Jersey and familiar with the rental market in Plainsboro, Middlesex County, New
Jersey to arrive at the Fair Market Rental Rate for the applicable renewal term. In the event that
six (6) months prior to the end of the applicable renewal lease term, the parties are unable to
agree upon a single appraiser, Landlord and Tenant shall each select an appraiser licensed in the
State of New Jersey and familiar with the rental market in Plainsboro, Middlesex County, New
Jersey, and advise the other party in writing of their selection no less than five (5) months prior
to the commencement of such applicable renewal term. Said appraiser(s) shall jointly determine (or
in the case of a single appraiser such single appraiser shall determine) the Fair Market Rental
Value of the Demised Premises for the applicable renewal term and advise Landlord and Tenant in
writing of their determination within sixty (60) days after being so selected. If the appraisers
agree upon the fair market rental value, then their agreement as to the fair market rental value
shall be the Fair Market Rental Rate. On the failure of either party to select an appraiser
by the aforesaid date, the appraiser appointed by the other party shall select an appraiser to
represent the party in default. In the event the two appraisers so selected cannot agree upon a
fair market rental they shall select a third appraiser to make a like determination. The
determination of two of the three appraisers which are the same shall be deemed the Fair Market
Rental Rate. If none of the amounts so determined are the same then the rental to be paid shall be
the average of all three. Each party shall be responsible for the fees of the appraiser selected by
or appointed for them, as the case may be, and the fees of the third appraiser selected, if
necessary, as aforesaid shall be shared equally by them.

(E) The rent reserved for and during the renewal term shall be payable in monthly installments
in the manner and to the extent set forth in each Lease as amended by this Lease Modification #3.

(F) There shall be no options to renew other than as specifically set forth above.

24. Landlord acknowledges and agrees that, as of the date hereof, any and all alterations,
additions, improvements or repairs made by Tenant to the “Demised Premises,” the “Building,”
“common areas” or “common area facilities” (as such terms are defined in the Helitex Lease and the
ABC Lease), which have been approved in writing by the Plainsboro Building Department (or such
other Township department having jurisdiction over such matters), are considered approved,
inspected and accepted by Landlord in accordance with the terms of the Helitrex Lease and the ABC
Lease.

25. This Lease Modification #3 amends and supercedes all amendments and modifications to the
Leases, including those set forth in Lease Amendment #1 and Lease Amendment #2.

26. Except as otherwise specifically provided for herein, the Leases shall continue in full
force and effect and Landlord and Tenant and their successors and permitted assigns shall be and
remain bound by all of the terms and conditions thereof.

IN WITNESS WHEREOF, Landlord and Tenant have hereunto set their hands and seals the date and
year first above written and acknowledge one to the other that they possess the requisite authority
to enter into this transaction and to sign this Agreement.

TENANT:

	 	 	 	 	 
	WITNESS:	 	 	 	Integra LifeSciences Corporation
	/s/ Anita Calicchio
	 	By:
	 	/s/ Stuart M. Essig

Name: Stuart M. Essig

Title: Chief Executive Officer

	 	 	 	 	LANDLORD:

	WITNESS:
	 	 	 	Plainsboro Associates

	/s/ Robert M. Shirley
	 	By:
	 	/s/ Gary R. DiLella

Name: Gary R. DiLella

Title: Vice President, Ocirne, Inc.,

General Partnerex10-1.htm

 

Exhibit 10.1

 

 

IN THE COURT OF CHANCERY OF THE STATE OF DELAWARE

 

	  	  	  
	
IN RE WILMINGTON TRUST CORPORATION

SHAREHOLDERS LITIGATION

	
:

:

	
CONSOLIDATED

C.A. No. 5958-VCL

	  	  	  

MEMORANDUM OF UNDERSTANDING

The parties to the putative consolidated class action filed in the Delaware Court of Chancery (the "Court"), captioned In re Wilmington Trust Corporation Shareholders Litigation, C.A. No. 5958-VCL (Del. Ch.) (the "Class Action"), by and through their respective attorneys, have reached an agreement in principle providing for the settlement of the Class Action (the "Settlement") on the terms and subject to the conditions set forth in this Memorandum of Understanding ("MOU"):

WHEREAS, on November 1, 2010, Wilmington Trust Corporation ("Wilmington Trust" or the "Company") announced that it had entered into a definitive Agreement and Plan of Merger (the "Merger Agreement"), dated October 31, 2010, with M&T Bank Corporation ("M&T"), pursuant to which Wilmington Trust will be merged with and into MTB One, Inc., a subsidiary of M&T ("Merger Sub"), and each of the Company's outstanding shares of common stock will be converted into the right to receive 0.051372 shares of M&T common stock (the "Merger");

WHEREAS, on November 5, 2010, plaintiff Medich filed his complaint captioned Medich v. Wilmington Trust Corporation, et al., C.A. No. 5958 (Del. Ch.) (the "Medich Action") challenging the Merger;

  

- 1 -

  

WHEREAS, on November 5, 2010, plaintiff Yi filed his complaint captioned Yi v. Wilmington Trust Corporation, et al., C.A. No. 5959 (Del. Ch.) (the "Yi Action") challenging the Merger;

WHEREAS, on November 9, 2010, plaintiff Burie filed his complaint captioned Burie v. Foley, et al., C.A. No. 5970 (Del. Ch.) (the "Burie Action") challenging the Merger;

WHEREAS, by Order dated December 8, 2010, the Court consolidated the Medich Action, Yi Action, and Burie Action under the caption In re Wilmington Trust Corporation Shareholders Litigation, C.A. No. 5958-VCL (Del. Ch.);

WHEREAS, on December 10, 2010, plaintiffs filed a verified amended and consolidated class action complaint (the "Complaint") naming Wilmington Trust, M&T, Merger Sub, Donald E. Foley, Carolyn S. Burger, Louis J. Freeh, Robert V.A. Harra, Jr., Gailen Krug, Rex L. Mears, Robert W. Tunnell, Jr. and Susan D. Whiting (collectively, "Defendants");

WHEREAS, on December 13, 2010, plaintiffs sent a demand letter to Defendants;

WHEREAS, on December 20, 2010, Defendants moved to dismiss the Complaint;

WHEREAS, on February 9, 2011, plaintiffs moved for expedited proceedings;

WHEREAS, on February 15, 2011, the parties entered into a letter agreement providing for expedited discovery;

WHEREAS, on February 11, 15, 21, and 24, 2011, Defendants provided to counsel for plaintiffs certain minutes, presentations, and other confidential materials;

WHEREAS, on February 21, 2011, plaintiffs made additional disclosure demands;

  

- 2 -

  

WHEREAS, on February 23, 2011, plaintiffs deposed Louis Freeh, lead independent director for Wilmington Trust;

WHEREAS, on February 24, 2011, Defendants provided counsel for plaintiffs in the Class Action, on a confidential basis, with a draft of a Form 8-K providing additional disclosures regarding the Merger (the "Draft 8-K") that Wilmington Trust might be willing to make in settlement of the Class Action;

WHEREAS, on February 25, 2011, counsel for plaintiffs requested that certain additional and revised disclosures be made in the Draft 8-K prior to it being filed with the SEC in advance of the special meeting of Wilmington Trust stockholders to vote on the Merger;

WHEREAS, on March 3, 2011, after additional negotiations, the parties reached an agreement in principle to settle the Class Action on the basis that Defendants will make certain additional and revised disclosures on Form 8-K (the "Revised 8-K");

WHEREAS, plaintiffs' counsel have determined that a settlement of the Class Action on the terms reflected in this MOU is fair, reasonable, adequate, and in the best interests of Wilmington Trust  and its stockholders;

WHEREAS, Defendants, to avoid the costs, disruption, and distraction of further litigation, and without admitting the validity of any allegations made in the Class Action, or any liability with respect thereto, have concluded that it is desirable that the claims against them be settled on the terms reflected in this MOU;

WHEREAS, Defendants maintain that they have violated no disclosure obligations or committed any breach of duty whatsoever in connection with the Merger;

NOW, THEREFORE, as a result of the foregoing and the negotiations among counsel to the parties, the parties to the Class Action have agreed in principle to settle the Class Action on the terms and conditions set forth below:

  

- 3 -

  

1.        In consideration for the settlement and dismissal with prejudice of the Class Action and the releases provided herein, Defendants will make certain additional and revised disclosures as set forth in the Revised 8-K attached hereto as Exhibit A.

2.        Counsel for the parties to the Class Action will use their best efforts to negotiate and execute an appropriate Stipulation of Settlement (the "Stipulation") and such other documentation as may be required to obtain final approval of the Settlement in the Court, and the dismissal of the Class Action upon the terms outlined in this MOU (collectively, the "Settlement Documents").

3.        The Stipulation shall provide, among other things:

a.           For the conditional certification of the Class Action, for settlement purposes only, as a class action pursuant to Court of Chancery Rules 23(a), 23(b)(1), and 23(b)(2), of a non-opt out class consisting of all record and beneficial owners of common stock of Wilmington Trust during the period beginning on and including the close of business on October 31, 2010, through and including the date of the consummation of the Merger, including any and all of their respective successors in interest, predecessors, representatives, trustees, executors, administrators, heirs, assigns or transferees, immediate and remote, and any person or entity acting for or on behalf of, or claiming under, any of them, and each of them (the "Class").  Defendants, members of their immediate families, and affiliates of Defendants will be excluded from the Class.

b.           For the complete discharge, dismissal with prejudice, settlement and release of, and an injunction barring, all claims, demands, rights, actions or causes of action, liabilities, damages, losses, obligations, judgments, suits, expenses, costs, matters and issues of any kind or nature whatsoever, whether known or unknown, contingent or absolute, suspected or unsuspected, disclosed or undisclosed, matured or unmatured, that have been, could have been,

  

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or in the future can or might be asserted in the Class Action or in any court, tribunal or proceeding (including, for the avoidance of doubt, any claims arising under federal or state statutory or common law, and claims of fraud, fraudulent inducement, breach of any duty, violations of securities laws or any state disclosure law, and negligence) by or on behalf of any member of the Class, whether individual, class, derivative, representative, legal, equitable or any other type or in any other capacity against Defendants (or any one of them) and/or any of their respective families, parent entities, associates, affiliates, or subsidiaries, and each and all of their respective past or present officers, directors, stockholders, partners, members, managers, representatives, employees, financial or investment advisors, consultants, accountants, attorneys, investment bankers, commercial bankers, engineers, advisors or agents, heirs, executors, trustees, general or limited partners, personal or legal representatives, estates, administrators, predecessors, successors and assigns (collectively, the "Released Persons"), whether or not any such Released Person was named, served with process or appeared in the Class Action, which have arisen, could have arisen, arise now or hereafter arise out of, or relate in any manner to, the allegations, facts, events, transactions, matters, acts, occurrences, statements, representations, misrepresentations, omissions or any other matter, thing or cause whatsoever, or any series thereof, embraced, involved, set forth in, referred to or otherwise related to any of the petitions or complaints filed in the Class Action, or any allegations therein, the Merger, the Merger Agreement and/or any related agreements, the adequacy of the Merger consideration, the negotiations preceding the Merger and the Merger Agreement, the fiduciary obligations of any of Defendants or Released Persons in connection with the Merger, or the disclosure obligations of any of Defendants or Released Persons in connection with the Merger, including but not limited to the Draft 8-K, the Revised 8-K, and the definitive Proxy Statement/Prospectus filed on a Form S-4 Registration Statement by Defendants with the SEC (the "Settled Claims"), provided,

  

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however, that the Settled Claims shall not include any claims to enforce the Settlement and that the Settled Claims shall not include the claims asserted in Pipefitters Local 537 Annuity Fund v. Wilmington Trust Corporation, et al., C.A. No. 10-990-LPS (D. Del.), Rooney v. Wilmington Trust Corporation, et al., C.A. No. 10-995-LPS (D. Del.), Elzagha v. Wilmington Trust Corporation, et al., C.A. No. 10-1020-LPS (D. Del.), Outten, et al., v. Wilmington Trust Corporation, et al., C.A. No. 10-1114-LPS (D. Del.) and Gray v. Wilmington Trust Corporation, et al., C.A. No. 11-00101-LPS (D. Del.).

c.           A statement that (i) the release contemplated by the Stipulation shall extend to claims that the members of the Class do not know or suspect to exist at the time of the release, which if known, might have affected their decision to enter into the release; (ii) the members of the Class shall be deemed to relinquish, to the extent it is applicable, and to the full extent permitted by law, the provisions, rights and benefits of Section 1542 of the California Civil Code, and (iii) the members of the Class shall be deemed to waive 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 California Civil Code Section 1542.

d.           A statement that Defendants shall fully, completely, finally, and forever release, relinquish and discharge plaintiffs and plaintiffs' counsel from all claims, including unknown claims, arising out of or relating to the institution, prosecution, settlement, or resolution of the Class Action (provided, however, that this release, relinquishment and discharge shall not include claims by the parties hereto to enforce the terms of the Settlement or Stipulation).

e.           That in the event the Settlement does not become final for any reason Defendants reserve the right to oppose certification of the Class in future proceedings.

  

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f.           Defendants have denied and continue to deny they have committed or attempted to commit any violations of law or breached any duty owed to Wilmington Trust and/or its stockholders.

g.           That the failure of the Court to approve a request for attorneys' fees and expenses in whole or in part shall have no effect on the Settlement set forth in the Stipulation.

4.         Pending negotiation, execution and Final Approval of the Stipulation by the Court, counsel to the parties in the Class Action agree to stay the Class Action, not to initiate any proceedings other than those incident to effecting the Settlement itself, not to seek any interim relief in favor of any member of the Class and to seek to remove or withdraw any pending requests for interim relief (including, but not limited to, preliminary injunction motions in the Class Action).  The parties' respective times to respond to any filed or served pleadings or discovery requests are extended indefinitely. As used in this MOU, the term "Final Approval" means that the Delaware Court has entered a final order and judgment certifying the Class, approving the Settlement, dismissing the Class Action with prejudice on the merits (and with plaintiffs and their counsel agreeing not to pursue fees or costs against Defendants other than pursuant to paragraphs 5 and 8 below) and providing for such release language as set forth in paragraph 3 above; and that such final order and judgment is final and no longer subject to further appeal or review, whether by affirmance on or exhaustion of any possible appeal or review, writ of certiorari, lapse of time or otherwise.  The parties also agree to use their best efforts to prevent, stay or seek dismissal of or oppose entry of any interim or final relief in favor of any member of the Class in any other litigation against any of Defendants which challenges the Settlement, the Merger, including any transactions contemplated thereby, or otherwise involves, directly or indirectly, a Settled Claim.

  

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5.         Notice of the proposed Settlement to members of the Class shall be provided by Defendants at their expense in a manner to be agreed upon by the parties, subject to the approval of the Court.

6.         This Settlement is subject to:  (a) the drafting and execution of the Settlement Documents, which the parties agree to undertake promptly in good faith; (b) the completion by plaintiffs of such confirmatory documentary discovery and depositions as the parties may agree upon or is ordered by the Court; (c) notice to members of the Class in a form and manner approved the Court; (d) certification of the Class, approval of the Settlement, and dismissal of the Class Action with prejudice and without awarding costs to any party except pursuant to Paragraphs 5 and 8 hereof, and (e) consummation of the Merger.  This MOU shall be null and void and of no force and effect should any of the conditions set forth herein not be met.  In such event, this MOU shall not be deemed to prejudice in any way the positions of the parties with respect to the Class Action nor to entitle any party to the recovery of costs and expenses intended to implement this MOU, and neither the existence of this MOU nor its contents shall be admissible in evidence or shall be referred to for any purpose in the Class Action or in any other litigation or judicial proceeding.

7.         Defendants have denied, and continue to deny, that any of them has committed or threatened to commit any violations of law or breaches of duty to plaintiffs, the Class or anyone else.  Defendants are agreeing to a settlement solely because it will eliminate the uncertainty, distraction, burden and expense of further litigation.

8.         Following the negotiation of all other terms of the agreement in principle to settle the Class Action set forth herein, the parties negotiated at arms' length and in good faith the amount of the attorneys' fees, costs and expenses to be paid to plaintiffs' counsel by Defendants, subject to approval by the Court.  The parties have agreed that plaintiffs may seek an award of

  

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attorneys' fees to plaintiffs' counsel and reimbursement of actual costs and expenses in the sum of $475,000.00 in the aggregate for their services in the Class Action, and that Defendants will not oppose such an award within those parameters.  Notwithstanding the foregoing, any decision by the Court to award attorneys' fees and expenses in a lesser amount shall in no way void this MOU.  Defendants and/or their successors-in-interest and/or their insurer shall pay the amount awarded by the Court, up to and including the sum of $475,000.00, within ten (10) business days after the later of (i) fulfillment of all the conditions to the Settlement or (ii) the date on which the Order and Final Judgment is entered, subject to plaintiffs' counsel's joint and several obligations to make appropriate refunds or repayments to the Company or its successors in interest if, as a result of any appeal and/or further proceedings on remand, or successful collateral attack, the fee or cost award is lowered.  If all conditions to the Settlement are not satisfied, no Defendant shall be contractually obligated to pay attorneys' fees and/or expenses to plaintiffs' counsel pursuant to this paragraph or otherwise.

9.          This MOU may be executed in multiple counterparts by any of the signatories hereto, including by facsimile, and as so executed shall constitute one agreement.

10.        This MOU will be executed by counsel for the parties to the Class Action, each of whom represents and warrants as to authority from that counsel's respective client(s) to enter into this MOU and bind the client(s) thereto.

11.        This MOU and the Settlement contemplated by it shall be governed by and construed in accordance with the laws of the State of Delaware, without regard to Delaware's conflicts of laws rules.  Each of the parties (a) irrevocably submits to the personal jurisdiction of any state or federal court sitting in Wilmington, Delaware, as well as to the jurisdiction of all courts to which an appeal may be taken from such courts, in any suit, action or proceeding arising out of or relating to this MOU, the Settlement and/or the Stipulation, (b) agrees that all claims in respect of

  

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such suit, action or proceeding shall be brought, heard and determined exclusively in the Delaware Court of Chancery (provided that, in the event that subject matter jurisdiction is unavailable in that court, then all such claims shall be brought, heard and determined exclusively in any other state or federal court sitting in Wilmington, Delaware), (c) agrees that it shall not attempt to deny or defeat such personal jurisdiction by motion or other request for leave from such court, (d) agrees not to bring any action or proceeding arising out of or relating to this MOU, the Settlement and/or the Stipulation in any other court, and (e) expressly waives, and agrees not to plead or to make any claim that any such action or proceeding is subject (in whole or in part) to a jury trial.  Each of the parties waives any defense of inconvenient forum to the maintenance of any action or proceeding brought in accordance with this paragraph.  Each of the parties further agrees to waive any bond, surety or other security that might be required of any other party with respect to any action or proceeding, including an appeal thereof.  Each of the parties further consents and agrees that process in any suit, action or proceeding may be served on such party by certified mail, return receipt requested, addressed to such party or such party's registered agent in the state of its incorporation or organization.

12.        This MOU may be modified or amended only by a writing signed by the signatories hereto.

13.        This MOU shall be binding upon and inure to the benefit of the parties and their respective agents, executors, heirs, successors and assigns.  

DATED: March 3, 2011

  

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For the Company and Director Defendants:

	  	  
	  	  
	  	  
	  	
      /s/ Robert S. Saunders

	  	
Robert S. Saunders (ID No. 3027)

	  	
SKADDEN, ARPS, SLATE,

	  	
   MEAGHER & FLOM LLP

	  	
One Rodney Square

	  	
P.O. Box 636

	  	
Wilmington, Delaware  19899-0636

	  	
(302) 651-3000

	  	  
	  	  
	  	
For the M&T Defendants:

	  	  
	  	  
	  	  
	  	
      /s/ Elena C. Norman

	  	
Elena C. Norman (ID No. 4780)

	  	
YOUNG CONAWAY STARGATT

	  	
  & TAYLOR, LLP

	  	
1000 North West Street

	  	
P.O. Box 391

	  	
Wilmington, Delaware  19801

	  	
(302) 571-6600

	  	  
	  	  
	  	
For the Plaintiffs:

	  	  
	  	  
	  	  
	  	
      /s/ Brian D. Long

	  	
Brian D. Long (ID No. 4347)

	  	
RIGRODSKY & LONG, P.A.

	  	
919 N. Market Street, Suite 980

	  	
Wilmington, Delaware 19801

	  	
(302) 295-5310

 

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