Document:

EX-10.158 INTELLECTUAL PROPERTY ASSIGNMENT

 

EXHIBIT
10.158

INTELLECTUAL
PROPERTY ASSIGNMENT

     This Intellectual Property Assignment Agreement (this “Assignment”) is made and entered into
this 26TH day of March, 2007 by and among Paradyne Networks, Inc., a Delaware
corporation (“Seller”) and Paradyne Corporation, a Delaware corporation (“Paradyne Corp”) and
together with Seller, (“Paradyne”) and Verso Technologies, Inc., a Minnesota corporation (“Buyer”).

RECITALS

     WHEREAS, Paradyne Corp is a wholly owned subsidiary of Seller and is the owner of record
of the Transferred IP set forth in Schedules A and B.

     WHEREAS, Seller and Buyer have entered into that certain Asset Purchase Agreement, dated as of
December 29, 2006 (the “Agreement”); and

     WHEREAS, under the terms of the Agreement, Seller has agreed to, among other things, assign
to Buyer all of its right, title and interest in, to and under the Transferred IP (as defined in
the Agreement) set forth in Schedules A and B.

ASSIGNMENT

     NOW, THEREFORE, for good and valuable consideration, the receipt and adequacy of which
are hereby acknowledged, Paradyne does hereby transfer, sell, assign, convey and deliver to Buyer
all right, title and interest of Paradyne in, to and under the Transferred LP set forth on
Schedules A and B and all good will of the Business (as such term is defined in the Agreement)
associated therewith. Paradyne hereby covenants and agrees, that from time to time forthwith upon
the reasonable written request of Buyer, Paradyne will, at Buyer’s cost and expense, do, execute,
acknowledge and deliver or cause to be done, executed, acknowledged and delivered, each and all of
such further acts, deeds, assignments, transfers, conveyances and assurances as may reasonably be
required by Buyer in order to transfer, assign, convey and deliver unto and vest in Buyer title to
all right, title and interest of Paradyne in, to and under the Transferred IP.

     This Assignment is subject in all respects to the terms and conditions of the Agreement and
is intended only to document the assignment of the Transferred IP. Nothing contained in this
Assignment shall be deemed to supersede any of the obligations, agreements, representations,
covenants or warranties of Seller and Buyer contained in the
Agreement.

     This Assignment shall be construed and interpreted according to the laws of the State of
California, applicable to contracts to be wholly performed within the State of California.

     This Assignment may be executed in one or more counterparts, and by the different parties
hereto in separate counterparts, each of which when executed shall be deemed to be an original,
but all of which taken together shall constitute one and the same agreement. Delivery of an
executed counterpart of a signature page to this Assignment by facsimile or e-mail shall be
effective as delivery of a manually executed counterpart of this Assignment.

 

 

     IN WITNESS WHEREOF, the parties have caused this Assignment to be executed by their
duly authorized officers.

	 	 	 
	“SELLER”

	 	“BUYER”
	 
	 	 
	/s/ Kirk Misaka

	 	/s/ Larry Schwartz
	 

	 	 
	By: KIRK MISAKA

	 	By: LARRY SCHWARTZ
	 
	 	 
	Title:
CFO
	 	Title: Vice President

	 
	 	 
	“PARADYNE CORP”
	 	 
	 
	 	 
	/s/
Kirk Misaka
	 	 
	 
	 	 
	By: KIRK MISAKA
	 	 
	 
	 	 
	Title: CFO

	 	 

 

 

STATE OF CALIFORNIA:

COUNTY OF
ALAMEDA

     On
the 26, day of March, 2007, before me personally came KIRK
D. MISAKA, to me
known (or satisfactorily proven), who being by me duly sworn, did depose and say that he is the
CFO of Zhone Technologies., the corporation described in,
and which executed the foregoing instrument, and that he was fully authorized to execute this
Assignment on behalf of said corporation.

	 	 	 
	 

	 	/s/ Karen S. Bradley (SEAL)
	 

	 	Notary Public                              
	 

	 	

STATE OF CALIFORNIA:

COUNTY OF
ALAMEDA

     On
the 26, day of March, 2007, before me personally came KIRK
D. MISAKA, to me
known (or satisfactorily proven), who being by me duly sworn, did depose and say that he is the
CFO of Paradyne Corp.., the corporation described in,
and which executed the foregoing instrument, and that he was fully authorized to execute this
Assignment on behalf of said corporation.

	 	 	 
	 

	 	/s/ Karen S. Bradley (SEAL)
	 

	 	Notary PublicEX-10.159 EXCLUSIVE LICENSE AGREEMENT

 

EXHIBIT
10.159

EXCLUSIVE LICENSE AGREEMENT

This Exclusive License Agreement (“Agreement”) is entered into by and between Verso
Technologies, Inc. (“Verso”), a Minnesota corporation having a principal place of business at 400
Galleria Parkway, Suite 200, Atlanta, GA 30339, Telemate.net Software, Inc. (“Licensor”), a
Georgia corporation having a principal place of business at 400
Galleria Parkway, Suite 200,
Atlanta, GA 30339, and ACACIA PATENT ACQUISITION CORPORATION (“APAC”), a Delaware corporation
having a principal place of business at 500 Newport Center Drive, Suite 700, Newport Beach, CA
92660 (collectively referred to herein as the “Parties”). The effective date of this Agreement
shall be the date on which the last Party executes this Agreement below (the ‘Effective Date”).

BACKGROUND

     Whereas, Verso is the parent company of Licensor;

     Whereas,
Licensor is the sole and exclusive owner of the U.S. Patent No. 6292801 and all
related patent applications, corresponding foreign patents and foreign patent applications, and
all continuations, continuations in part, divisions, extensions, renewals, reissues and
re-examinations relating to all inventions thereof, which are collectively referred to as the
“Patents” (the “Patents”); and

     Whereas, Licensor is willing to grant worldwide exclusive license rights in the Patents to
APAC and APAC in turn, desires to license and enforce the Patents and to provide Licensor a
certain percentage of the net proceeds arising from such licensing and enforcement as provided
herein.

     NOW, THEREFORE, in consideration of the promises and mutual covenants contained herein and
for other good and valuable consideration, Licensor and APAC agree as follows:

	1.	 	GRANT

	 	1.1.	 	Licensor grants to APAC the worldwide, exclusive (subject to the License set
forth in Section 1.2 below) right and license under the Patents to make, have made,
use, import, offer or sell products or services covered by the Patents, including the
exclusive right to grant sublicenses, to sue for and collect past, present and future
damages and to seek and obtain injunctive or any other relief for infringement of the
Patents. Notwithstanding anything to the contrary, the grant to APAC of the exclusive
right and license under the Patents herein shall be exclusive, even as to Licensor and
Verso, with respect to any and all Exclusive Parties (as defined below) and APAC shall
have the sole and exclusive right under the Patents to deal with one or more Exclusive
Parties in any and all matters relating to the Patents, including without limitation
any and all direct and indirect offers for sale and sales of products and services, in
whole or in part, covered by the Patents to such Exclusive Parties. The term
“Exclusive Party” shall mean: (a) a declaratory judgment plaintiff or an infringement
defendant under any of the Patents; or (b) a party with which APAC has initiated or
undertaken licensing

 

 

	 	 	 	communications, discussions and/or negotiations or otherwise asserted any of the
Patents against, provided that an Exclusive Party shall be deemed to include any
and all of its affiliates. Licensor and Verso expressly retain no rights in or to
the Patents except for the License set forth in Section 1.2 below, including
without limitation, the right to sue for infringement of the Patents prior to any
termination of this Agreement and specifically grants APAC all such rights prior to
any termination. The exclusive right and license granted herein shall exist for the
life of the Patents, or as otherwise provided in Section 6 below.
	 
	 	1.2.	 	Subject to the provisions of this Section 1.2 and notwithstanding any
provisions in
this Agreement to the contrary, APAC hereby grants to Licensor and Verso as of the Effective Date a limited, perpetual, worldwide, non-exclusive,
non-transferable, royalty-free, personal right and license under the Patents to
make, have made, use, import, offer or sell products or services, and support
products, solely as required by Licensor and Verso to conduct Verso’s Business as
defined below (the “License”). The License shall commence as of the Effective Date
and terminate in accordance with the provisions of this Agreement. For purposes of
this Section 1.2, “Verso’s Business” shall mean only those products and services
offered for sale or sold by Licensor or Verso or their affiliates,
provided,
however, that “Verso’s Business” shall exclude, and the License shall not apply to
or otherwise cover, any and all products or services, including without limitation
any and all improvements, modifications, and extensions thereof, that are
developed, supplied, provided or acquired, in whole or in part, by or from any
third parties other than contractors of Licensor or Verso or their subsidiaries
where such contractors may not be an Exclusive Party. Subject to prior written
approval by APAC, where such approval shall not be unreasonably withheld, and
subject to the provisions of Section 7.2, the License shall be assignable by
Licensor or Verso to a third party, such third party not being an Exclusive Party,
solely in connection with the sale of all or a portion of Verso’s Business by
Verso or Licensor to the third party.
	 
	 	1.3.	 	Other than as expressly set forth in Section 1.2 above, Licensor and Verso
expressly retain no rights in or to the Patents, including without limitation no
rights to sue for and collect past, present and future damages and to seek and
obtain injunctive or any other relief for infringement of the Patents, and no other
rights or licenses under the Patents are granted or implied.
	 
	 	1.4.	 	Licensor, Verso and their affiliates will mark of each of their products in a
conspicuous manner so as to identify each of the applicable Patents embodied in
such product (e.g., U.S. Patent No. 6,292,801).

	2.	 	ROYALTIES AND OTHER PAYMENTS

	2.1. 	 	APAC shall pay Licensor a continuing royalty equal to fifty percent (50%) of the
Net Proceeds, as defined below. For purposes hereof, the following terms shall have
the following meanings:

 

 

	 	 	 	“Net Proceeds” shall mean Total Recoveries less the APAC Costs.
	 
	 	 	 	“Total Recoveries” shall mean all amounts actually received by APAC from the
licensing and enforcement of the Patents including all licensing proceeds and
recoveries from any lawsuits or settlements. Any non-monetary consideration
received by APAC in connection with licensing or enforcement of the Patents shall
be valued at fair market value to be determined in good faith by APAC, If Licensor
disagrees with APAC’s determination of fair market value, APAC and Licensor shall
agree upon an appraiser to determine such value and shall share equally the cost of
such appraisal.
	 
	 	 	 	“APAC Costs” shall mean all out-of-pocket costs and expenses incurred with
independent, unaffiliated third parties in connection with prosecuting, licensing,
enforcing or defending the Patents, including without limitation (A) attorneys’
and paralegal fees (whether on an hourly or contingent basis and whether for
general or local counsel), costs and disbursements; (B) the fees and costs of
consultants, experts or technical advisors (other than principals of APAC or its
affiliates); (C) travel and lodging expenses; (D) duplicating, secretarial,
stenographer, postage, courier and similar expenses; (E) filing fees and other
Patent Office fees or costs; (F) court costs; (G) legal and other costs related to
any re-examination or reissue proceeding; (H) legal and other costs incurred in
defending any action or counterclaim in respect of the Patents; and (I) legal and
other costs in prosecuting or processing any U.S. or foreign application,
including without limitation, any continuing application or continuation in part
application (collectively, the “APAC_Costs”).

	 	 	2.2. Total Recoveries shall be applied in the following order
of priority: first to APAC in an
amount equal to the APAC Costs, then to APAC and Licensor in
proportion to their respective shares of the Net Proceeds. All Taxes (as defined below) shall be the financial responsibility
of the Party obligated to pay such Taxes as determined by the applicable law and neither Party
is or shall be liable at any time for any of the other Party’s Taxes incurred in connection
with or related to amounts paid under this Agreement. The term “Taxes” shall mean any foreign,
federal, state, local, municipal or other governmental taxes, duties, levies, fees, excises or
tariffs, arising as a result of or in connection with any amounts paid under this Agreement,
including without limitation; (i) any state or local sales or use taxes; (ii) any import,
value added or consumption tax; (iii) any business transfer tax; (iv) any taxes imposed or
based on or with respect to or measured by any net or gross income or receipts of either
party; (v) any franchise taxes, taxes on doing business, gross
receipts taxes or capital stock
taxes; or (vi) any other tax now or hereafter imposed by any governmental or taxing authority
on any aspect of this Agreement and the obligations hereunder. If Taxes are required to be
withheld on any amounts otherwise to be paid by one Party to the other, the paying Party shall
deduct and set off such Taxes from the amount otherwise due

 

 

	 	 	and owed to the receiving Party and pay them to the appropriate taxing authority. Each
party agrees to indemnify, defend and hold the other Party harmless from any Taxes or
claims, causes of action, costs, expenses, reasonable attorneys’ fees, penalties,
assessments and any other liabilities of any nature whatsoever related to such Taxes to
the extent such Taxes relate to amounts paid under this Agreement.
	 
	2.3.	 	All amounts payable to Licensor shall be due within thirty (30) days after the end
of each calendar quarter with respect to Net Proceeds, if any, in such quarter.
APAC will provide Licensor with a report of Total Recoveries and APAC Costs
for each calendar quarter that Net Proceeds are due to Licensor. Licensor shall
have the right to audit such reports in accordance with Section 4.2 below. All
other payments from one Party to the other hereunder shall be due and payable
within thirty (30) days following receipt of the applicable invoice.
	 
	2.4.	 	Licensor and Verso will be available from time to time to consult with APAC or
its attorneys on matters relating to the Patents. In the event that the testimony of
any employee, director, officer, consultant or agent of Licensor and/or Verso is
taken in any action relating to the Patents, APAC’s attorneys will represent such
party without additional charge, and Licensor and such party will cooperate with
APAC and its attorneys in preparing for such testimony. Licensor and/or Verso
will grant access to APAC and allow APAC to make copies of all files in
Licensor’s possession or control relating to the Patents, including access to such
documents as may be necessary to conduct enforcement and licensing efforts.
APAC will pay for Licensor’s and/or Verso’s reasonable out of pocket travel
expenses incurred at the request of APAC and any such expenses will be treated
as APAC Costs.
	 
	2.5.	 	Licensor and Verso acknowledge and agree that APAC shall undertake and
perform a due diligence investigation of the Patents during the period of up to
sixty (60) days following the Effective Date (the “Investigation Period”). In
consideration of APAC’s due diligence investigation of the Patents, Licensor and
Verso agree that, during the investigation Period, Licensor and Verso shall not
discuss, negotiate or pursue with any third parties any offers or proposals with
respect to or otherwise relating to any of the Patents. APAC agrees that during
the Investigation Period, it shall not exercise any of its rights with respect to the
Patents except to the extent required to conduct the diligence investigation.
Licensor and Verso agree to cooperate with APAC and to promptly provide to
APAC any reasonably requested information regarding the Patents, including
prompt delivery for receipt by APAC no later than seven (7) days following the
Effective Date of a copy of the complete prosecution history of each of the
Patents (each a “File History”). In the event that (1) any of the File Histories or
(2) any of the files, information and documents relating to the
Patents are not
delivered to .APAC within the seven (7) day period following the Effective Date,
APAC may extend die Investigation Period by the greater of the number of days
for which (I) die last of the File Histories or (II) any files, information and
documents relating to the Patents is delayed by providing written notice of such

 

 

extension to Verso (which notice shall include a list of the materials and
information that APAC is missing). Upon completion of the Investigation Period, APAC
shall provide written notice to Licensor and Verso of its election regarding the
Patents. The Investigation Period will commence on the Effective Date and conclude on
the earlier of: (a) sixty (60) calendar days following, but not including, the
Effective Date, subject to the extensions set forth in this Section 2.5; or (b) such
time within the Investigation Period as APAC transmits written notice to Licensor of
its election regarding the investigation of the Patents. If APAC determines, in its
sole and absolute discretion, that the Patents are satisfactory and transmits written
notice to Licensor that the Patents are satisfactory (the “Satisfactory Completion”),
then this Agreement shall continue with full force and effect following such
Satisfactory Completion of the Investigation Period. Otherwise, if APAC determines,
in its sole and absolute discretion, that the Patents are not satisfactory, then (i)
APAC shall have no payment obligations or liability to Licensor and/or Verso
hereunder; (ii) Licensor and/or Verso shall have no payment obligations or liability
to APAC hereunder; and (iii) this Agreement shall automatically terminate upon
completion of the Investigation Period. Failure by APAC to notify Licensor or Verso
in writing that Satisfactory Completion has occurred within five (5) business days
after expiration of the Investigation Period shall be deemed to be a finding that the
Patents are not satisfactory.

	3.	 	REPRESENTATIONS AND WARRANTIES

	 	3.1.	 	Licensor and Verso represent and warrant to APAC that, as of the Effective
Date hereof:

	 	3.1.1.	 	Licensor is the sole owner of the Patents and has all right, title, claims,
interest and privileges arising from such ownership, free and clear of any
liens, security interests, encumbrances, rights or restrictions;
	 
	 	3.1.2.	 	Licensor and Verso have fully disclosed to the U.S. Patent Office the identity
of all inventors of the inventions described in the Patents as required by U.S.
law;
	 
	 	3.1.3.	 	the Patents and the inventions described in the Patents are (A) not the
product or subject of any joint development activity or agreement with any third
party; (B) not the subject of any consortia agreement or cross-license; and (C)
have not been financed in whole or in part by any third party;
	 
	 	3.1.4.	 	the issued Patents remain in full force and effect as of the Effective Date of
this Agreement;
	 
	 	3.1.5.	 	Licensor and Verso have not assigned, licensed, granted covenants not to sue,
transferred or otherwise conveyed to any other person or entity any of

 

 

	 	 	 	his rights, title, claims, interest or privileges with respect to the Patents, except
as would be consistent with the License;
	 
	 	3.1.6.	 	Exhibit A includes all related patents, patent applications, foreign counterparts, and all continuations, continuations in part, divisions, extensions, renewals, reissues and re-examinations relating to all inventions thereof, which are in the same respective patent family or families as the Patents;
	 
	 	3.1.7.	 	the issued Patents are not and have not been subject to any action or proceeding concerning their validity, enforceability, inventorship or ownership;
	 
	 	3.1.8.	 	all maintenance fees that have become due with respect to the
Patents have been paid in full;
	 
	 	3.1.9.	 	except for that which is disclosed in the prosecution history of the respective patent
family or families of the Patents, Licensor and Verso have no knowledge of any facts
that could give rise to a claim that the Patents are invalid or unenforceable; and
Licensor has not engaged in any conduct, or omitted to perform any necessary act, the
result of which would invalidate the Patents or preclude their enforceability;
	 
	 	3.1.10.	 	Licensor and Verso have all requisite legal and corporate power and authority to enter
into this Agreement, to consummate the transactions contemplated hereby, and to carry out
and perform its obligations under the terms of this Agreement; and
	 
	 	3.1.11.	 	the execution, delivery, performance of and compliance with this Agreement has not
resulted and will not result in any violation of, or conflict with, or constitute a
default under (with or without notice or lapse of time, or both), or give rise to a right
of termination, cancellation or acceleration of any obligation or loss of any benefit
under any agreement to which Licensor or Verso is a party.

	 	3.2.	 	APAC represents and warrants to Licensor that, as of the Effective Date hereof:

	 	3.2.1.	 	APAC is a corporation duly organized and in good standing under the laws of Delaware;
	 
	 	3.2.2.	 	APAC has authority to enter into this Agreement and implement its terms; and
	 
	 	3.2.3.	 	the person executing this Agreement on behalf of APAC is duly authorized to do so.

 

 

	4.	 	RECORDS; FEES

	 	4.1.	 	APAC shall keep complete and proper records of the Total Recoveries and APAC
Costs.
	 
	 	4.2.	 	Licensor shall have the right, during reasonable business hours no more than
once per calendar year, to audit, at Licensor’s expense, the correctness of any
previously unaudited APAC report or if no report has been issued, the validity of the
lack of a report, by an independent public accountant chosen by Licensor who may
examine APAC’s records pertinent to this Agreement. Licensor and his representatives
shall hold in confidence any such information and shall not use the information for
any purposes other than verifying APAC’s reporting in connection with this Agreement.
If the audit determines that APAC owes any money to Licensor and APAC confirms such
findings, APAC shall pay such amount within thirty days.
	 
	 	4.3.	 	For so long as this Agreement is in effect, Licensor shall pay all maintenance
fees with respect to the Patents on or before their due dates, at the large entity rate
In the event Licensor fails to make any maintenance fee payment when due, APAC may make
such payment and such payment shall be considered an APAC Cost. During the term of the
Agreement, APAC shall assume sole control of any and all activities, matters and
proceedings before the United States Patent and Trademark Office (the “USPTO”) relating
to any and all of the Patents, including without limitation any reissues or
reexaminations of any issued United States patent, the prosecution of any United States
patent applications and the continuing prosecution of any pending United States patent
applications among the Patents and the costs, fees and expenses paid by APAC in
connection therewith shall be treated as APAC Costs. Licensor and Verso hereby grant
APAC a power of attorney permitting APAC to assume such sole control of any and all
activities, matters and proceedings before the USPTO and Licensor shall fully cooperate
with APAC, including without limitation the execution of such documents as APAC shall
reasonably require, to timely address and prosecute all such activities, matters and
proceedings before the USPTO. APAC agrees that prior to abandoning or forfeiting any
right or proceeding related to the prosecution of the Patents, APAC shall notify
Licensor of such impending abandonment or forfeiture and shall give Licensor the
opportunity to assume the costs of such proceeding at Licensor’s option.

	5.	 	ENFORCEMENT OF PATENT RIGHTS

	 	5.1.	 	Subject to the terms and conditions of this Agreement, APAC will use its good
faith efforts to pursue licensing and enforcement of the Patents at its expense. APAC
will attempt to negotiate licenses with companies that APAC believes may be infringing
the Patents. APAC may, at its sole discretion, license the Patents to companies that
may have an interest in the technology covered by the Patents. Notwithstanding any of
the foregoing, APAC may at any time elect not to pursue

 

 

	 	 	 	licensing or enforcement of any of the Patents if APAC determines, in its reasonable
and sole discretion, that any such pursuit would be commercially unreasonable or
otherwise unlawful or illegal.
	 
	 	5.2.	 	APAC may, in its sole judgment, decide to institute enforcement actions against
certain or all of the companies that APAC believes are infringing the Patents. APAC shall
have the exclusive right to bring suit to enforce the Patents. Licensor shall join as a
plaintiff at APAC’s request in the event APAC’s counsel determines that Licensor or Verso
is a necessary party to the action. in the event that Licensor or
Verso joins in any suit,
either before or after it is initiated, Licensor and Verso shall have the right to be
represented by counsel of his choice. provided that if Licensor or Verso chooses to have
representation separate from APAC, Licensor and Verso shall be responsible for paying all
his own respective fees and costs related to such representation and APAC shall be solely
responsible for the fees and costs incurred by its own counsel. In the event Licensor or
Verso joins as a plaintiff at APAC’s request, or Licensor or Verso is named as a party by
another party to such action, APAC shall defend and indemnify Licensor and Verso against
all liabilities, costs and expenses related to such action, except that, as provided
above. Licensor and shall be responsible for their own counsel’s fees and costs if it
elects to retain separate counsel. Notwithstanding any of the foregoing, in the event that
a court holds that Licensor or has engaged in fraud, gross negligence, or willful
misconduct, APAC shall have no obligation to indemnify Licensor and Verso for any
judgments, liability, loss, damages, costs and expenses (including reasonable attorneys’
fees and expenses of litigation) in connection therewith.
	 
	 	5.3.	 	Regardless of whether Licensor or Verso is named as a party to any enforcement action,
APAC reserves the sole right to select counsel, direct the litigation, and to negotiate
and determine the terms of any settlement or other disposition of such action. The parties
agree to fully cooperate with each other in any litigation that is brought.

	6.	 	TERMINATION

	 	6.1.	 	Unless earlier terminated as provided in this Section 6, all grants, obligations and
provisions recited in this Agreement and relating to the Patents shall continue in full
force and effect, until the later of either a) the expiration date of the Patents or b) the
conclusion of APAC’s licensing and enforcement of the Patents. Notwithstanding the
foregoing, in the event that a final decree of invalidity from which no appeal can be, or
is, taken, with respect to the Patents, this Agreement shall terminate at such time.
	 
	 	6.2.	 	Licensor and Verso may terminate this Agreement in the event that APAC files for
bankruptcy protection under any state or federal bankruptcy law or a petition for
bankruptcy is filed against APAC and not dismissed within ninety (90) days.

 

 

	 	6.3.	 	Either party may terminate this Agreement upon written notice to the other if
the other party breaches any material representation, warranty or agreement in
this Agreement and fails to cure such breach within ninety (90) days of receipt of
such written notice detailing the alleged breach.
	 
	 	6.4.	 	APAC may terminate this Agreement, upon ninety (90) day written notice to Licensor
or Verso, if it determines, in its sole judgment, that licensing or enforcement of
the Patents is not commercially reasonable or practicable. In such
case, APAC shall
cooperate with Licensor with regard to enabling Licensor to continue any pending
litigation or license negotiations that Licensor wishes to continue.
	 
	 	6.5.	 	in the event of Satisfactory Completion, Licensor and Verso may also terminate this
Agreement within a ninety (90) day period, beginning three (3) years from the date
of such Satisfactory Completion (the “Termination Period”) unless APAC has either
(a) filed and is prosecuting in good faith any action or counterclaim for
infringement of any of the Patents, or (b) generated at least one hundred thousand
($100,000) dollars in Net Proceeds from licensing or enforcement of the Patents (the
failure of (a) and (b) above shall be referred to as a “Termination Event”). In
order to terminate this Agreement pursuant to this Section 6.5, within the
Termination Period, Licensor and Verso shall provide APAC with written notice of its
intention to exercise its right to terminate this Agreement under this Section, at
which time APAC shall have a ninety (90) day period from the time it receives such
notice, in which it may cure the Termination Event giving rise to the right of
termination (the “Cure Period”) by either (a) filing and prosecuting in good faith
an action (or counterclaim) to enforce any of the Patents or (b) generating Net
Proceeds of at least one hundred thousand ($100,000) dollars and paying Licensor its
share of the Net Proceeds, if any. If Licensor and Verso do not give APAC notice of
its intention to terminate within the Termination Period or APAC cures the
Termination Event during the Cure Period, then Licensor’s right to terminate this
Agreement under this Section 6.5 shall lapse.
	 
	 	6.6.	 	In the event of any dispute as to whether a party has breached this Agreement
pursuant to Section 6.3 above or whether a cure has been effected, there shall be no
termination of the license under this Agreement unless and until there is a final
ruling that there has been an uncured breach, as provided herein.
	 
	 	6.7.	 	Any termination of this Agreement shall not relieve APAC of liability for any
payments due to Licensor or Verso accrued prior to the effective date of such
termination.
	 
	 	6.8.	 	In the event of any termination of this Agreement, regardless of the cause, after
payment of any monies due Licensor or Verso, APAC shall be entitled to retain or
receive the portion of Total Recoveries that it would be entitled to retain or
receive if this Agreement were in effect, which (a) accrued or was received prior to
the termination date, (b) accrues or is received alter the termination date as a

 

 

	 	 	 	result of any settlement, license agreement or other agreement or transaction that was
negotiated, made or occurred prior to the termination date, or (c) resulted from any
lawsuit or negotiations that were pending at or prior to the occurrence of such
termination.
	 
	 	6.9.	 	The parties acknowledge and agree that this Agreement is a contract under which APAC
is a licensee of intellectual property as provided in Section 365(n) of title 11, United
States Code (the “Bankruptcy Code”). Licensor acknowledges that if Licensor, as a debtor
in possession or a trustee in bankruptcy in a case under the Bankruptcy Code (the
“Bankruptcy Trustee”), rejects this Agreement, APAC may elect to retain all of its rights
under this Agreement as provided in Section 365(n) of the Bankruptcy Code. Upon written
request of APAC to Licensor or the Bankruptcy Trustee, Licensor will not interfere with
any of the rights of APAC as provided in this Agreement.

	7.	 	ASSIGNMENT

	 	7.1.	 	This Agreement shall inure to the benefit of, and be binding
upon the respective successors, assigns, heirs, beneficiaries and personal representatives of Licensor
and APAC, subject to Section 7.2 below.
	 
	 	7.2.	 	This Agreement is personal and non-assignable, except it may be assigned by
APAC to an affiliate of APAC, provided such affiliate agrees to be bound by all
the terms and conditions of this Agreement in writing, including the obligation to
make payments hereunder. Notwithstanding anything to the contrary, Licensor
and Verso acknowledge and agree that: (a) except as set forth in
Section 1.2,
Licensor and Verso may not at any time directly or indirectly transfer the License,
in whole or in part, to any third party, including without limitation any Exclusive
Party; and (b) an Exclusive Party may not at any time claim ownership or
entitlement to any License or otherwise obtain or be deemed to obtain directly or
indirectly any rights, benefits, licenses or immunities, in whole or in part, under
any License, whether by, through, as a result of, or otherwise in connection with
any agreement, contract, transaction or business combination with Licensor or
Verso. Except as set forth above with respect to the License and Exclusive
Parties, Licensor and Verso may transfer or assign all or any part of his interest in
this Agreement or sell or transfer all or some of the Patents, provided that (i)
the transferee or assignee is not an Exclusive Party; (ii) the transferee or assignee
agrees to be bound by the terms of this Agreement in writing; and (iii) Licensor
and Verso shall continue to be bound by the terms of this Agreement.

	8.	 	GOVERNING LAW AND CONSENT TO JURISDICTION

	 	8.1.	 	This Agreement shall be governed by and construed under applicable federal law and
the laws of the State of California, excluding any conflict of law provisions.
	 
	 	8.2.	 	Neither APAC, Licensor nor Verso shall be liable for any consequence or damage
arising out of or resulting from the manufacture, use or sale of the products under

 

 

	 	 	 	the Patents. In no event shall any party be entitled to special, indirect,
consequential damages, including lost profits, or punitive damages for breach of this
Agreement.

	9.	 	CONFIDENTIALITY

	 	9.1.	 	All information provided pursuant to this Agreement, including without limitation, the
terms of this Agreement, shall be regarded as confidential information (“Confidential
Information”). The Parties agree that, other than as required by law or as permitted
hereunder, they shall not disclose any Confidential Information and shall use the
Confidential Information only for the purposes set forth herein. Licensor acknowledges that
APAC’s parent company, Acacia Research Corporation (“Acacia”), is a publicly traded
company, and that Acacia may be required to publicly disclose the
signing of terms
Agreement, as well as certain terms of the Agreement. APAC acknowledges that Verso is a
publicly traded company, and that Verso may be required to publicly disclose the signing of
this Agreement, as well as certain terms of the Agreement. Either party may disclose
Confidential Information to its financial and legal advisors subject to confidentiality
obligations at least as stringent as those provided in this Agreement. Licensor and Verso
may disclose this Agreement as required to obtain any consents necessary to enter into or
execute this Agreement. Confidential Information shall not include information that: (a)
was already known, otherwise than under an agreement of secrecy or non-use, at the time of
its disclosure; (b) has passed into the public domain prior to or after its disclosure,
otherwise than through any act or omission attributable to principals, officers, employees,
consultants or agents of the receiving party; or (c) was subsequently disclosed, otherwise
than under an agreement of secrecy or non-use, by a third party that had not acquired the
information under an obligation of confidentiality.

	10.	 	MISCELLANEOUS

	 	10.1.	 	All notices or communications which either party may desire, or be required, to
give or make to the other shall be in writing and shall be deemed to have been duly given
or made if and when forwarded by registered or certified mail to the address set forth
above in this Agreement or to such other address as a party shall give to the other in
writing delivered at the last address specified in the manner prescribed by this
Agreement.
	 
	 	10.2.	 	The failure to act upon any default hereunder shall not be deemed to constitute a
waiver of such default.
	 
	 	10.3.	 	This Agreement constitutes the entire understanding of the parties with respect to
its subject matter and may not be modified or amended, except in writing by the parties.
Nothing in this Agreement, whether expressed or implied, shall be construed to give any
person (other than the Parties and their respective permitted successors and assigns),
any legal or equitable right, remedy or claim under or in

 

 

	 	 	 	respect of this Agreement or any covenants, conditions or provisions contained
herein, as a third party beneficiary or otherwise.
	 
	 	10.4.	 	If for any reason in any jurisdiction in which any provision of this
Agreement is sought to be enforced, any one or more of the provisions of this
Agreement shall be held invalid, illegal or unenforceable in any respect, such holding
shall not affect any other provision of this Agreement and this Agreement shall be
construed as if such invalid, illegal or unenforceable provision had never been
contained therein.
	 
	 	10.5.	 	This Agreement may be executed in several counterparts, each of which shall
constitute an original, but all of which together shall constitute one and the same
instrument. A faxed copy of a signature page shall be considered an original for
purposes of this Agreement.
	 
	 	10.6.	 	The headings contained in this Agreement have been inserted for convenient
reference only and shall not modify, define, expand or limit any of the provisions of
this Agreement.

IN WITNESS WHEREOF, the Parties have executed this Agreement on the Effective Date.

	 	 	 	 	 	 	 	 	 	 	 
	VERSO TECHNOLOGIES, INC.	 	 	 	ACACIA PATENT ACQUISITION

CORPORATION	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	/s/ Larry Schwartz 

	 	 
	 	By:
	 	/s/ Dooyong Lee
 

	 	 
	Print Name:

	 	Larry Schwartz
 

	 	 
	 	Print Name:
	 	Dooyong Lee
 

	 	 
	Title:

	 	Vice President
	 	 	 	Title:
	 	EUP	 	 
	Date:

	 	3/23/07
	 	 	 	Date:
	 	3/23/07	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	TELEMATE.NET SOFTWARE, INC.	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	/s/ Larry Schwartz	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	Print Name:

	 	Larry Schwartz	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	Title:

	 	Vice President	 	 	 	 	 	 	 	 
	Date:

	 	3/23/07

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00120-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00120-of-00352.parquet"}]]