Exhibit 10.1
[NAME OF RELEVANT NET ROYALTY INTEREST HOLDER]
(AS THE "RELEVANT INTEREST HOLDER")
AND
DOCUMENT SECURITY SYSTEMS, INC.
(AS THE "ASSIGNEE")
SURRENDER AND ASSIGNMENT AGREEMENT
relating to:
the surrender and assignment of certain interests in various intellectual
property rights
DOCUMENT SECURITY SYSTEMS, INC.
FIRST FEDERAL PLAZA
SUITE 1525
00 XXXX XXXX XXXXXX
XXXXXXXXX
XXX XXXX 00000
TABLE OF CONTENTS
PAGE
1. Definitions and Interpretation........................................1
2. Surrender and Assignment of Interests.................................4
3. Representations, Warranties and Indemnities...........................5
4. Further Assurance.....................................................7
5. Non-Competition.......................................................7
6. Legal Advice..........................................................8
7. Confidentiality.......................................................8
8. Governing Law.........................................................9
Schedule 1....................................................................10
Schedule 2....................................................................12
Schedule 3....................................................................14
Schedule 4....................................................................17
Schedule 5....................................................................19
-i-
THIS AGREEMENT is made
BETWEEN:
(1) [NAME OF RELEVANT NET ROYALTY INTEREST HOLDER], of [INSERT RELEVANT
ADDRESS DETAILS], (the "RELEVANT INTEREST HOLDER"); and
(2) DOCUMENT SECURITY SYSTEMS, INC., a company incorporated in the State of
New York whose principal place of business is at First Federal Plaza,
Suite 1525, 00 Xxxx Xxxx Xxxxxx, Xxxxxxxxx, Xxx Xxxx 00000, (the
"ASSIGNEE").
WHEREAS:
(A) The Relevant Interest Holder is the holder of certain Interests (as
defined below) in the Relevant IPR (as defined below).
(B) The Relevant Interest Holder is willing to and has agreed to surrender
and assign to the Assignee and the Assignee wishes and has agreed to
accept the surrender and assignment of all right, goodwill, title and
interest in and to the Interests of the Relevant Interest Holder in
accordance with the terms and conditions of this Agreement.
IT IS AGREED THAT:
1. DEFINITIONS AND INTERPRETATION
1.1 In this Agreement the following words and expressions shall have the
following meanings unless the context otherwise requires:
1.1.1 "ASSIGNORS" shall mean the Estate, Xxxx Xxxxxx, Xxxxxx Xxxxxx,
Xxxxxxxxx Xxxxxx, Xxxxxxx Xxxxxx, Xxxxx Xxxxxx and Xxxxxxx
Xxxxx;
1.1.2 "DEED OF ASSIGNMENT" shall mean the deed of assignment in
respect of the Assignors' Interests in the Relevant IPR from
the Assignors to the Assignee;
1.1.3 "ESTATE" shall mean collectively Xxxxx X. Xxxxxx and the
Estate of Xxxxx X. Xxxxxx;
1.1.4 "XXXXXX GROUP" shall mean Xxxxxx X. Xxxxxx, Cord Xxxxx Zum
Spreckel, Xxxxxxxxx Xxxxxxxxx (personally and as the assignee
of the Midwest Bank Note Company), T&T Associates, Inc. and
Midwest Bank Note Company;
1.1.5 "XXXXXX IPR" shall mean those patents, patent applications and
other rights, details of which are included at Schedule 2 to
this Agreement;
1.1.6 "XXXXXX IPR INTERESTS" shall mean the interests in the Xxxxxx
IPR owned by the Xxxxxx Group and the Estate;
1.1.7 "XXXXXX ROYALTIES" shall mean the royalties or payments due or
payable in respect of the Xxxxxx IPR, or arising by reason of
an Interest in the Xxxxxx IPR;
1
1.1.8 "XXXXXX ROYALTY INTEREST HOLDERS" shall mean the Xxxxxx Group
and the Wicker Patents Owners (except for Xxxxx North America,
Inc.);
1.1.9 "XXXXXX ROYALTY INTERESTS" shall mean the percentage interests
in the Xxxxxx Royalties owned by each of the Xxxxxx Royalty
Interest Holders respectively;
1.1.10 "GROSS ROYALTIES" shall mean the gross royalties or payments
due or payable in respect of the Relevant IPR;
1.1.11 "GROSS ROYALTY INTEREST HOLDERS" shall mean the Estate, SMW
Patent Corp., the Assignee, the Xxxxxx Group, Xxxxxx Xxxxxx,
Xxxx Xxxxxxxx, Xxxxxx X. Xxxxxx, J. Xxxxx Xxxxxxx, Xxxxx
Xxxxxx, Xxxxxxx XxXxxxxxx, Xxxxxxxxx Xxxxxx, Xxxxxxx Xxxxxx,
Xxxxx Xxxxxx and Xxxxxxx Xxxxx;
1.1.12 "GROSS ROYALTY INTERESTS" shall mean the percentage interests
in the Gross Royalties owned by each of the Gross Royalty
Interest Holders respectively;
1.1.13 "INTELLECTUAL PROPERTY RIGHTS" shall mean all copyrights
(including rights in computer software), moral rights, patents
and patent applications, rights in inventions (whether
patentable or not), utility models, trade marks (whether
registered or unregistered and including any goodwill in such
trade marks), service marks, trade names, business names,
internet domain names, e-mail address names, design rights
(whether registered or unregistered), database rights,
semiconductor topography rights, proprietary information
rights, rights in know how, rights in confidential information
and all other intellectual property rights, whether registered
or unregistered and including applications for any of the same
and all other similar or equivalent proprietary rights and
intellectual property rights as may exist anywhere in the
world;
1.1.14 "INTEREST HOLDERS" shall mean the Estate, the Wicker Patent
Owners, the Xxxxxx Group, the Gross Royalty Interest Holders,
the Net Royalty Interest Holders, the Xxxxxx Royalty Interest
Holders, Xxxxxxx Xxxxx, SDS and the Wicker Family, further
details of which are set out at Schedule 4 to this Agreement;
1.1.15 "INTERESTS" shall mean the various rights and interests held
by the Interest Holders variously in and to the Wicker
Patents, the Xxxxxx IPR, the Gross Royalties, the Net
Royalties and the Xxxxxx Royalties, as the case may be,
including, without limitation the Wicker Patents Interests,
the Xxxxxx IPR Interests, the Gross Royalty Interests, the Net
Royalty Interests, the Xxxxxx Royalty Interests, the SDS
Interest and the Wicker Family Interests, certain further
details of which are set out at Schedule 3 to this Agreement,
together with any additional rights, economic or otherwise,
whether beneficial interests, rights held in trust, rights
howsoever arising to grant licences and/or sub-licences or
otherwise benefit from licences and/or sub-licences, rights to
receive monies, or rights to monies arising from the use or
sale of any of the Relevant IPR and any other rights or
interests of the Interest Holders variously in and to the
Wicker Patents, the Xxxxxx IPR, the Gross Royalties, the Net
Royalties, the Xxxxxx Royalties, any other Relevant IPR and
any of the Wicker Patents Interests, the Xxxxxx IPR Interests,
the Gross Royalty Interests, the Net Royalty Interests, the
Xxxxxx Royalty Interests, the SDS Interest and/or the Wicker
Family Interests;
2
1.1.16 "NET ROYALTIES" shall mean the net royalty payments or
payments due or payable in respect of the Relevant IPR;
1.1.17 "NET ROYALTY INTEREST HOLDERS" shall mean the Estate, Xxxxxx
X' Xxxxxxxx, Estate of Xxxxxxxx Xxxxxx, Xxxxxxx Girthler, II,
Xxxxxxx Girthler, III, Xxxxx Xxxxxx, Xxxxxx Xxxx, CPA, Xxxxxxx
X'Xxxx, Xxxxxx Xxxx, Xxxxxxx X'Xxxxxxxx, Xxxxxxx Xxxx, Xxxx
Xxxxxx Xxxxxx, Xxxxxxxxx Xxxxxxx, Xxxxxx Xxxxxxx, Xxxxx
Xxxxxxxx, Xxxxxxx Xxxxx(1), Xxxxx Xxxxxxx, Esq., Xxxxxx
Xxxxxxx, Xxxx and Xxxxxxx X'Xxxxxx, Estate of Xxxxx Xxxxxx,
Xxxxx Xxxxxxxx, Xxxxxx Xxxxxxx, Xxxxxx Xxxxxxx, Xxxxxxx
XxXxxxxx, Xxxxx Xxxxxx Xxxxxx, Xxxxxx Xxxxx, Xxx Xxxxx, Xxxx
Xxxxxx, Xxxxxx Xxxxxx, Xxxxxxx Xxxxxxxx, Xxxxxxx Dublin,
Xxxxxxx Xxxxxxx, Xxxxxxx Xxxxx, Xxxx Xxxxxxxx, Xxxx Xxxxxx,
Xxxxxxx Xxxx Xxxxxxx and Xxxxx Xxxxxxx;
1.1.18 "NET ROYALTY INTERESTS" shall mean the percentage interests in
the Net Royalties owned by each of the Net Royalty Interest
Holders respectively;
1.1.19 "RELEVANT IPR" shall mean any and all rights in and to the
Wicker Patents and the Xxxxxx IPR and all rights in know how,
trade secrets and other Intellectual Property Rights
associated with or relating to the actual or potential use of
the Wicker Patents and/or the Xxxxxx IPR;
1.1.20 "SDS" shall mean Secured Document Systems, Inc., its
shareholders and Xxxxx Xxxxxx, and in each case, their
respective successors and assigns;
1.1.21 "SDS INTEREST" shall mean all Interests of SDS including,
without limitation, all Interests of SDS not specifically
referred to within Schedule 3 to this Agreement in respect of
the Wicker Patents, the Xxxxxx IPR, the Gross Royalties, the
Net Royalties, the Xxxxxx Royalties and any other Relevant
IPR;
1.1.22 "SHARES" shall mean the fully paid up issued common shares of
the Assignee;
1.1.23 "SMW PATENT CORP." shall mean SMW Patent Corp. and its
shareholders and in each case, their respective successors and
assigns;
1.1.24 "WICKER FAMILY" shall mean all living members of the family of
Xxxxx X. Xxxxxx including, without limitation, Xxxx Xxxxxx,
Xxxxxx Xxxxxx, Xxxxxxxxx Xxxxxx, Xxxxxxx Xxxxxx and Xxxxx
Xxxxxx;
1.1.25 "WICKER FAMILY INTERESTS" shall mean all Interests of the
Wicker Family including, without limitation, Interests of the
Wicker Family not specifically referred to within Schedule 3
to this Agreement in respect of the Wicker Patents, the Xxxxxx
IPR, the Gross Royalties, the Net Royalties, the Xxxxxx
Royalties, and any other Relevant IPR;
-----------------------------
(1) The Net Royalty Interest of Xxxxxxx Xxxxx has been previously acquired by
the Assignee in July 2002.
3
1.1.26 "WICKER PATENTS" shall mean all of those patents and patent
applications details of which are included at Schedule 1 to
this Agreement;
1.1.27 "WICKER PATENTS INTERESTS" shall mean the percentage interests
in the Wicker Patents owned by each of the Wicker Patents
Owners respectively; and
1.1.28 "WICKER PATENTS OWNERS" shall mean the Estate, SMW Patent
Corp., Xxxxxx Xxxxxx, Xxxxxxxx X. Xxxxxxx, Xxxxx North
America, Inc. and the Assignee.
2. SURRENDER AND ASSIGNMENT OF INTERESTS
2.1 In consideration of the allotment of [INSERT RELEVANT NUMBER OF SHARES
TO BE ALLOCATED TO THE RELEVANT INTEREST HOLDER] Shares to the Relevant
Interest Holder, the receipt and sufficiency of which the Relevant
Interest Holder hereby acknowledges, the Relevant Interest Holder
agrees as set out at Clauses 2.2 through 2.5 below.
2.2 The Relevant Interest Holder HEREBY SURRENDERS AND ASSIGNS and shall
procure the surrender and assignment of with full title guarantee to
the Assignee or its nominee absolutely any and all of the Relevant
Interest Holder's rights, title and interest in and to:
2.2.1 the Net Royalty Interests, any other Relevant IPR and any
Interests; and
2.2.2 all and any rights, privileges and advantages of the Relevant
Interest Holder in and to the Net Royalty Interests, any other
Relevant IPR and any Interests and any common law rights
attaching to the Net Royalty Interests, other Relevant IPR and
any Interests in accordance with the terms and conditions of
this Agreement.
2.3 This surrender and assignment referred to in Clause 2.2 above shall
include the right for the Assignee to bring proceedings against any
third party in respect of the Net Royalty Interests, other Relevant IPR
and/or any Interests (including proceedings against any third party for
infringement of the Net Royalty Interests, other Relevant IPR and/or
any Interests, or for otherwise infringing the rights of the Relevant
Interest Holder in the Net Royalty Interests, other Relevant IPR and/or
Interests, whether such infringement occurred before or after the date
of this Agreement) and so claim damages and other forms of relief
therefore in its own name. The Relevant Interest Holder agrees and
undertakes to provide, and procure the provision of, to the Assignee
(at its request) all such assistance with any proceedings which may be
brought by or against the Assignee against or by any third party in
relation to the Net Royalty Interests, other Relevant IPR and/or
Interests.
2.4 The Shares to be transferred to the Relevant Interest Holder pursuant
to Clause 2.1 above shall only be issued to the Relevant Interest
Holder once the following have occurred: (a) each member of the Xxxxxx
Group except for Xxxxxxxxx Xxxxxxxxx and the Midwest Bank Note Company
has executed a copy of an agreement on substantially the same terms as
this Agreement and the rights in the Interests of each member of the
Xxxxxx Group have been assigned to the Assignee and such assignments
have been completed and perfected, (b) SMW Patent Corp. and each of its
shareholders has executed a copy of an agreement on substantially the
same terms as this Agreement and the rights in the Interests of SMW
Patent Corp. and each of its shareholders have been assigned to the
Assignee and such assignments have been completed and perfected, (c)
each Assignor has executed the Deed of Assignment and the rights in the
Interests of each Assignor have been assigned to the Assignee and such
assignments have been completed and perfected, and (d) at least fifty
percent (50%) of the Interest Holders holding Net Royalty Interests and
Gross Royalty Interests (other than members of the Xxxxxx Group, SMW
Patent Corp. and its shareholders and the Assignors) shall have
executed a copy of an agreement on substantially the same terms as this
Agreement, and the rights in the Interests of such Interest Holders
have been assigned to the Assignee and such assignment has been
completed and perfected.
4
2.5 The Relevant Interest Holder hereby surrenders, releases and assigns to
the Assignee all claims of any nature that the Relevant Interest Holder
may have in respect of the Relevant IPR, the Interests, the Assignee,
the Assignors, the Wicker Family and/or the Estate in any way and
acknowledges and agrees that, following execution of this Agreement,
the Relevant Interest Holder shall have no right or interest in respect
of the Relevant IPR, the Interests, the Assignee (other than the Shares
allotted under Clause 2.1 above), the Assignors, the Wicker Family
and/or the Estate, or any rights arising out of any of them and that no
person owes any money to the Relevant Interest Holder in respect of any
earlier transaction or exploitation in connection with the Relevant
IPR, the Interests, the Assignee, the Assignors, the Wicker Family
and/or the Estate.
3. REPRESENTATIONS, WARRANTIES AND INDEMNITIES
3.1 The Relevant Interest Holder hereby represents and warrants to the
Assignee that:
3.1.1 upon execution of this Agreement the Relevant Interest Holder
shall have surrendered, released and/or assigned, as the case
may be, to the Assignee all of the Relevant Interest Holder's
respective rights, title and interests in all of the Relevant
Interest Holder's Interests, the Relevant IPR and the Estate;
3.1.2 so far as the Relevant Interest Holder is aware, the details
of the Interest Holders and the Interests included in this
Agreement are full, complete and accurate and are a full,
complete and accurate reflection of the ownership of all
Interests in any and all of the Relevant IPR, as the case may
be;
3.1.3 the Relevant Interest Holder has not assigned, transferred,
licensed or sub-licensed any of the Relevant Interest Holder's
Interests to any third party or parties at any time or in any
way whatsoever;
3.1.4 details in respect of all past, present and potential future
liabilities of which the Relevant Interest Holder is aware in
respect of the Relevant IPR, the Interests, the Estate, and/or
any third party claims which may reasonably be expected to
affect the Relevant Interest Holder's Interests in the
Relevant IPR are set out at Schedule 5 to this Agreement;
5
3.1.5 the Relevant Interest Holder does not have any knowledge of
any party whose rights are not expressly referred to in this
Agreement, who has asserted, claimed or otherwise alleged to
the Relevant Interest Holder that such party has any interest
in any of the Relevant IPR, the Interests and/or the Estate;
3.1.6 so far as the Relevant Interest Holder is aware, the list of
the Interest Holders identified herein is a complete list of
any Interest Holders in any of the Relevant IPR and/or the
Interests that fully, completely and accurately reflects the
present knowledge of the Relevant Interest Holder as to any
party who has asserted, claimed or otherwise alleged that such
party has any interest in any of the Relevant IPR and/or the
Interests; and
3.1.7 the Interests of the Relevant Interest Holder are not subject
to any options, charges, mortgages, liens, security interests,
taxes, claims, liabilities or other encumbrances
("ENCUMBRANCES") and will be assigned to the Assignee free and
clear of any and all such Encumbrances.
3.2 Subject to the provisions of Clause 3.3 below, the Relevant Interest
Holder shall indemnify and keep indemnified the Assignee in respect of
any loss or damage suffered or incurred by the Assignee resulting from
or otherwise arising in respect of:
3.2.1 a breach of any of the representations or warranties included
at Clause 3.1 above;
3.2.2 any claim made or loss incurred at any time with respect to,
relating to or attributable to the period during which the
Relevant Interest Holder held any Interest in respect of the
Relevant IPR, including, without limitation, any claims based
upon any failure to pay licence or royalty fees or any claims
or loss incurred in respect of the liabilities referred to at
Clause 3.1.4 above; and/or
3.2.3 any claim of any governmental taxing authority for taxes due
and upon which claim the governmental taxing authority claims
or imposes a lien or encumbrance upon the Relevant IPR (other
than taxes imposed on royalties accrued with respect to the
Relevant IPR on or prior to the date hereof but collected by
the Assignee after the date hereof).
3.3 The Relevant Interest Holder's obligation to indemnify the Assignee as
set out at Clause 3.2 above shall be limited to an amount equal to
one-half (1/2) the fair market value of the Shares delivered to the
Relevant Interest Holder under Clause 2.1 above (which fair market
value shall be determined as of the date a notice of claim is delivered
with respect to such indemnification obligation), provided, however,
that any obligation to indemnify the Assignee arising as a result of a
breach of representations and warranties set forth in Clauses 3.1.1,
3.1.3 and 3.1.7 and/or any obligation to indemnify the Assignee under
Clause 3.2.3 shall be limited to the full fair market value of the
Shares delivered to the Relevant Interest Holder under Clause 2.1 above
(which fair market value shall be determined as of the date a notice of
claim is delivered with respect to such indemnification obligation).
3.4 The Assignee may set off against any money or allotment of Shares that
would otherwise be payable or owing by the Assignee to the Relevant
Interest Holder under or pursuant to this Agreement and/or any other
agreement or arrangement unless and until the Relevant Interest Holder
has paid, satisfied or discharged all moneys, debts or liabilities due
or owing to the Assignee pursuant to this Agreement including, without
limitation, pursuant to Clause 3.2 above and has satisfied all of the
Relevant Interest Holder's other obligations to the Assignee (however,
no setoff shall be applied against the Relevant Interest Holder with
respect to royalties accrued on or prior to the date hereof with
respect to the Relevant IPR that are collected by the Assignee after
the date hereof).
6
4. FURTHER ASSURANCE
4.1 The Relevant Interest Holder hereby covenants that at the request of
the Assignee at any time and from time to time the Relevant Interest
Holder will execute and procure the execution of such deeds or
documents and do and procure the doing of such acts and/or things as
may be necessary or desirable:
4.1.1 to give effect to the provisions of this Agreement; and
4.1.2 to assign and transfer all right, title and interest in and to
the Relevant IPR to the Assignee.
4.2 The Relevant Interest Holder agrees and undertakes with the Assignee
that, to the extent the Relevant Interest Holder has any information
relevant to the enforcement or validity of any of the Relevant IPR, the
Relevant Interest Holder will give the Assignee such assistance in any
enforcement or validity proceedings as the Assignee may reasonably
request.
5. NON-COMPETITION
5.1 Following the date of execution of this Agreement:
5.1.1 until the date that it two (2) years from the date hereof, the
Relevant Interest Holder shall not directly or indirectly,
engage or invest in, own, manage, operate, finance, control or
participate in ownership, management, operation, financing or
control of, be concerned or interested in, be employed by,
lend the Relevant Interest Holder's name to, lend credit to,
render services or advice to or serve as director, officer or
consultant to any business that is in competition or in
conflict with the Assignee, or is similar to the business of
the Assignee;
5.1.2 until the date that it two (2) years from the date hereof, the
Relevant Interest Holder shall not directly or indirectly,
invest in, own, finance, control or participate in ownership,
utilisation, financing, or control of or be concerned or
interested in any Intellectual Property Rights which are
similar to any of the Relevant IPR, in any way whatsoever; and
5.1.3 except as otherwise agreed by the Assignee in writing, in
consideration of the payments and other considerations to the
Relevant Interest Holder by the Assignee pursuant to this
Agreement and free of any additional obligations of the
Assignee to make additional payments to the Relevant Interest
Holder, the Relevant Interest Holder agrees to irrevocably
assign to the Assignee any and all inventions, software,
manuscripts, documentation, improvements, trade secrets or
other Intellectual Property Rights relating to the present
anti-theft and anti-fraud document security business of the
Assignee, (the "RIGHTS") developed by the Relevant Interest
Holder, either alone or jointly with others. The Relevant
Interest Holder agrees that all Rights shall be and remain the
exclusive property of the Assignee. The Relevant Interest
Holder hereby agrees to execute such assignments and other
documents as the Assignee may consider appropriate to vest all
right, title and interest in the Rights in the Assignee.
7
5.2 Following the date of execution of this Agreement, the Relevant
Interest Holder agrees not to enter into any licensing or sub-licensing
agreement, or other arrangement or agreement, with respect to any of
the Relevant IPR or to amend or modify the terms of any existing
licence or sub-licence agreement with respect to the Relevant IPR, or
to hold itself out to the public as the owner of the Relevant IPR.
Further, all future inquiries received by the Relevant Interest Holder
from licensees or sub-licensees, or potential licensees or
sub-licensees shall be forwarded to the Assignee.
5.3 The Relevant Interest Holder agrees that the restrictions set forth in
this Clause 5 are reasonable in the circumstances of this Agreement and
necessary to protect the Assignee's right, goodwill, title and interest
in and to the Relevant IPR in accordance with the terms and conditions
of this Agreement, the Agreement to Assign Certain Interests in
Intellectual Property Rights between the Assignors and the Assignee and
the Deed of Assignment. Further, the Relevant Interest Holder agrees
that, if a court of competent jurisdiction determines that any portion
of this Clause 5 is in violation of statute or public policy, only the
portions of this Clause 5 that violate statute or public policy shall
be stricken and all other portions of this Clause that do not violate
statute or public policy shall continue in full force and effect. If
any one or more provisions contained in this Clause 5 is determined by
a court of competent jurisdiction to be excessively broad as to
duration, scope, activity or subject, or is unreasonable or
unenforceable under applicable laws, such provisions will be construed
by limiting, reducing, modifying or amending them so as to be
enforceable to the maximum extent permitted by law.
6. LEGAL ADVICE
6.1 The Relevant Interest Holder hereby acknowledges and agrees that the
Relevant Interest Holder has been advised by the Assignee to seek full
and independent legal advice in respect of this Agreement and has
sought such advice.
7. CONFIDENTIALITY
7.1 The Relevant Interest Holder agrees that the Relevant Interest Holder
shall keep this Agreement and the terms thereof confidential. The
Relevant Interest Holder hereby acknowledges and understands that the
Assignee is a public company which files reports under the Securities
and Exchange Commission which become public knowledge and the Assignee
may therefore be required to disclose this Agreement and the terms
thereof in its filings with the Securities and Exchange Commission.
8
8. GOVERNING LAW
8.1 This Agreement shall be governed by and construed in accordance with
the laws of the State of New York. The Parties hereto submit to the
exclusive jurisdiction of the federal and state Courts located in the
Borough of Manhattan, City of New York. Each of the Parties hereto
hereby waives any and all defenses based upon personal jurisdiction or
venue, including defenses based on forum non conveniens. Further, the
Parties agree that, in any dispute regarding an alleged breach of this
Agreement, any finding by a court of competent jurisdiction of a
material breach of this Agreement shall entitle the prevailing Party to
recover its or their costs and fees, including attorneys' fees,
incurred as a result of the other Party's material breach of this
Agreement.
9
SCHEDULE 1
THE WICKER PATENTS
------------------- -------------- ----------------- ------------ -------------- --------------- -----------------
DESCRIPTION OF STATUS APPLICATION/ DATE OF DATE OF REGISTERED JURISDICTION
PATENT REGISTRATION GRANT EXPIRY PROPRIETOR
NUMBER
------------------- -------------- ----------------- ------------ -------------- --------------- -----------------
Counterfeit Granted US 5,018,767 - 28 May 1991 18 January Xxxxx X. USA
Protected Document A NUMBER OF 2009 Wicker/ SMW
CLAIMS OF THIS Patent Corp./
Process Patent PATENT HAVE Xxxxxx X.
BEEN Wicker/
INVALIDATED.
Document
Security
Systems,
Inc.
------------------- -------------- ----------------- ------------ -------------- --------------- -----------------
Anti-Photo-copying Granted US 5,735,547 April 7, Jan. 3, 2017 Xxxxxxxx X. USA
Imaging 1998 Morelle/
Xxxxx X.
Product & Process Wicker/
Patent Document
Security
Systems, Inc.
------------------- -------------- ----------------- ------------ -------------- --------------- -----------------
Counterfeit Granted CA 2,045,580 24 Nov 1999 16 January Xxxxx X. Canada
Protected Document 2010 Wicker
Process Patent
------------------- -------------- ----------------- ------------ -------------- --------------- -----------------
Method of Making Granted EP 0455750 24 Nov 1999 16 January Xxxxx X. France
a Non Replicable 2010 Wicker
Document
------------------- -------------- ----------------- ------------ -------------- --------------- -----------------
Method of Making Granted EP 0455750 24 Nov 1999 16 January Xxxxx X. Austria
a Non Replicable 2010 Wicker
Document E 186876
------------------- -------------- ----------------- ------------ -------------- --------------- -----------------
Method of Making Granted EP 0455750 24 Nov 1999 16 January Xxxxx X. Liechtenstein
a Non Replicable 2010 Wicker
Document
------------------- -------------- ----------------- ------------ -------------- --------------- -----------------
Method of Making Granted EP 0455750 24 Nov 1999 16 January Xxxxx X. UK
a Non Replicable 2010 Wicker
Document
------------------- -------------- ----------------- ------------ -------------- --------------- -----------------
Method of Making Granted EP 0455750 24 Nov 1999 16 January Xxxxx X. Germany
a Non Replicable 2010 Wicker
Document DE 69033362
------------------- -------------- ----------------- ------------ -------------- --------------- -----------------
Method of Making Granted EP 0455750 24 Nov 1999 16 January Xxxxx X. Switzerland
a Non Replicable 2010 Wicker
Document
------------------- -------------- ----------------- ------------ -------------- --------------- -----------------
Method of Making Granted EP 0455750 24 Nov 1999 16 January Xxxxx X. The Netherlands
a Non Replicable 2010 Wicker
Document
------------------- -------------- ----------------- ------------ -------------- --------------- -----------------
Security Granted US 5,707,083 13 January 00 Xxxxxx Xxxxx Xxxxx XXX
Documents With 1998 2016 America,
Multi-Angled Voids Inc./Estate
of Xxxxx X.
Xxxxxx/
Xxxxxx Xxxxxx/
Document
Security
Systems, Inc.
------------------- -------------- ----------------- ------------ -------------- --------------- -----------------
10
SCHEDULE 2
THE XXXXXX IPR
Pursuant to an Assignment, Consultation and Technical Development Agreement
Dated 17 July 1991, Xxxxx X Xxxxxx granted to the Xxxxxx Group:
1. an assignment of any patent application corresponding to Patent
Application Serial Nos. 07/298,020 and 07/473,903 filed in any foreign
countries other than the USA, the UK, Canada, France, Germany, the
Netherlands, Switzerland, Xxxxxxxxxxxx and Austria and any patent
issuing therefrom and any divisions, renewals, continuations and
continuations in part thereof. Details of the relevant patent
applications and patent registrations are set out in the table below:
------------------- ---------------- ------------------ ---------- --------------- ---------------- -------------------
DESCRIPTION OF STATUS APPLICATION/ DATE OF DATE OF REGISTERED JURISDICTION
PATENT REGISTRATION GRANT EXPIRY PROPRIETOR
NUMBER
------------------- ---------------- ------------------ ---------- --------------- ---------------- -------------------
Method of Making Ceased/ AU 640,370B2 24 Nov 16 January Xxxxxx X. Australia
a Non Replicable Expired as of 1999 2010 Xxxxxx (and
Document 04/09/97 possibly
others)
------------------- ---------------- ------------------ ---------- --------------- ---------------- -------------------
Method of Making Unknown JP 4504543 T 24 16 January Xxxxx X. Xxxxxx Japan
a Non Replicable November 2010
Document 1999
------------------- ---------------- ------------------ ---------- --------------- ---------------- -------------------
Method of Making Withdrawn as EP 0938981 A3 Xxxxx Xxxxxx
a Non Replicable of 16/10/02
Document
------------------- ---------------- ------------------ ---------- --------------- ---------------- -------------------
Method of Making Registered and EP 0455750 24 16 January Xxxxx Xxxxxx Belgium
a Non Replicable in force November 2010 (confirmed up
Document 1999 to 30 June
2004)
------------------- ---------------- ------------------ ---------- --------------- ---------------- -------------------
Method of Making Registered and EP 0455750 24 16 January Xxxxx Xxxxxx Denmark
a Non Replicable in force November 2010
Document 1999
------------------- ---------------- ------------------ ---------- --------------- ---------------- -------------------
Method of Making Registered and EP 0455750 24 16 January Xxxxx Xxxxxx Italy
a Non Replicable in force November 2010
Document 67478 BE/2000 1999
------------------- ---------------- ------------------ ---------- --------------- ---------------- -------------------
Method of Making Registered and EP 0455750 24 16 January Xxxxx Xxxxxx Luxembourg
a Non Replicable in force November 2010 (confirmed up
Document 1999 to 30 June
2004)
------------------- ---------------- ------------------ ---------- --------------- ---------------- -------------------
Method of Making Registered and EP 0455750 24 16 January Xxxxx Xxxxxx Spain
a Non Replicable in force November 2010
Document ES 2140377 1999
------------------- ---------------- ------------------ ---------- --------------- ---------------- -------------------
Method of Making Registered and EP 0455750 24 16 January Xxxxx Xxxxxx Sweden
a Non Replicable in force November 2010 (confirmed up
Document 1999 to 30 June
2004)
------------------- ---------------- ------------------ ---------- --------------- ---------------- -------------------
11
2. a paid up exclusive licence to all of Xxxxx Xxxxxx'x rights in the
Invention (an invention generally described as non-replicable document
and method for making same in respect of which Patent Application
Serial Nos. 07/298,020 (issued as US Patent 5,018,767) and 07/473,903
and patent applications generally described as non-photographic patent
application and PCT application US90/00221, (together with any
divisions, continuations and continuations in part) have been filed),
know how and improvements therein, including at least 84% of the
Invention and patent rights described above for use in foreign
countries where the Assignees have filed patent applications under the
patent and patent applications described above; and
3. a right to receive 10% of all royalties received on the manufacture
of legal tender or currency produced in accordance with the Invention.
The Parties also agreed that where products are printed in their respective
countries, but are shipped for first use into the other party's country the
Parties are each entitled to their respective percentages of the royalty from
first use of the product in the country the product was shipped into.
12
SCHEDULE 3
THE INTERESTS
1. WICKER PATENTS
The Wicker Patent Owners own the following Interests in the Wicker Patents:
---------------------------------------------------------------- --------------------------------------------------------
WICKER PATENT OWNER OWNERSHIP INTEREST IN WICKER PATENTS
---------------------------------------------------------------- --------------------------------------------------------
The Estate 69.5% of the `767 Patent and of all the foreign patents
---------------------------------------------------------------- --------------------------------------------------------
The Estate 25% of the `083 Patent
---------------------------------------------------------------- --------------------------------------------------------
The Estate 43% of the `547 Patent
---------------------------------------------------------------- --------------------------------------------------------
SMW Patent Corp. 23.5% of the `767 Patent and of all the foreign patents
---------------------------------------------------------------- --------------------------------------------------------
SMW Patent Corp. 50% of the `547 Patent
---------------------------------------------------------------- --------------------------------------------------------
Document Security Systems, Inc. 6.0% of the `767 Patent and of all the foreign patents
and of the `547 Patent
---------------------------------------------------------------- --------------------------------------------------------
Document Security Systems, Inc. 24% of the `083 Patent
---------------------------------------------------------------- --------------------------------------------------------
Xxxxxx Xxxxxx 1.0% of all the Wicker Patents
---------------------------------------------------------------- --------------------------------------------------------
Xxxxx North America, Inc. 50% of the `083 Patent
---------------------------------------------------------------- --------------------------------------------------------
2. XXXXXX IPR
The Xxxxxx Group and the Estate own an Interest of 100% of the Xxxxxx IPR.
3. GROSS ROYALTY INTERESTS
The Gross Royalty Interest Holders own the following Gross Royalty Interests in
the Gross Royalties:
---------------------------------------------------------------- --------------------------------------------------------
GROSS ROYALTY INTEREST HOLDER GROSS ROYALTY INTEREST IN GROSS ROYALTIES
---------------------------------------------------------------- --------------------------------------------------------
The Estate 33.195015%
---------------------------------------------------------------- --------------------------------------------------------
SMW Patent Corp 23.50000%
---------------------------------------------------------------- --------------------------------------------------------
Xxxxxx Xxxxxx 8.00000%
---------------------------------------------------------------- --------------------------------------------------------
Document Security Systems, Inc. 6.00000%
---------------------------------------------------------------- --------------------------------------------------------
Xxxxxx Group 10.00000%(2)
---------------------------------------------------------------- --------------------------------------------------------
Xxxx Xxxxxxxx 2.36300%
---------------------------------------------------------------- --------------------------------------------------------
Xxxxxx X. Xxxxxx 1.53000%
---------------------------------------------------------------- --------------------------------------------------------
J. Xxxxx Xxxxxxx 0.38250%
---------------------------------------------------------------- --------------------------------------------------------
Xxxxx Xxxxxx 0.22935%
---------------------------------------------------------------- --------------------------------------------------------
Xxxxxxx XxXxxxxxx 0.80000%
---------------------------------------------------------------- --------------------------------------------------------
Xxxxxxxxx Xxxxxx 6.00000%
---------------------------------------------------------------- --------------------------------------------------------
Xxxxxxx Xxxxxx 6.00000%
---------------------------------------------------------------- --------------------------------------------------------
Xxxxx Xxxxxx 6.00000%
---------------------------------------------------------------- --------------------------------------------------------
Xxxxxxx Xxxxx 6.00000%
---------------------------------------------------------------- --------------------------------------------------------
-----------------------------
(2) The Xxxxxx Group is entitled to 10% of all royalties received on the
manufacture of legal tender or currency in respect of the Wicker Patents.
13
4. NET ROYALTY INTERESTS
The Net Royalty Interest Holders own the following Net Royalty Interests in the
Net Royalties:
---------------------------------------------------------------- --------------------------------------------------------
NET ROYALTY INTEREST HOLDER NET ROYALTY INTEREST IN NET ROYALTIES
---------------------------------------------------------------- --------------------------------------------------------
The Estate 41.924%
---------------------------------------------------------------- --------------------------------------------------------
Xxxxxx X' Xxxxxxxx 10.0000%
---------------------------------------------------------------- --------------------------------------------------------
Estate of Xxxxxxxx Xxxxxx 4.8850%
---------------------------------------------------------------- --------------------------------------------------------
Xxxxxxx Girthler, II 3.9300%
---------------------------------------------------------------- --------------------------------------------------------
Xxxxxxx Girthler, III 3.7600%
---------------------------------------------------------------- --------------------------------------------------------
Xxxxx Xxxxxx 3.7600%
---------------------------------------------------------------- --------------------------------------------------------
Xxxxxx Xxxx, CPA 4.2500%
---------------------------------------------------------------- --------------------------------------------------------
Xxxxxxx X'Xxxx 1.0000%
---------------------------------------------------------------- --------------------------------------------------------
Xxxxxx Xxxx 0.0125%
---------------------------------------------------------------- --------------------------------------------------------
Xxxxxxx X'Xxxxxxxx 1.0000%
---------------------------------------------------------------- --------------------------------------------------------
Xxxxxxx Xxxx 1.0000%
---------------------------------------------------------------- --------------------------------------------------------
Xxxx Xxxxxx Xxxxxx 2.1250%
---------------------------------------------------------------- --------------------------------------------------------
Xxxxxxxxx Xxxxxxx 2.0000%
---------------------------------------------------------------- --------------------------------------------------------
Xxxxxx Xxxxxxx 0.7000%
---------------------------------------------------------------- --------------------------------------------------------
Xxxxx Xxxxxxxx 1.3125%
---------------------------------------------------------------- --------------------------------------------------------
Xxxxxxx White3 4.1250%
---------------------------------------------------------------- --------------------------------------------------------
Xxxxx Xxxxxxx, Esq. 1.0000%
---------------------------------------------------------------- --------------------------------------------------------
Xxxxxx Xxxxxxx 0.1250%
---------------------------------------------------------------- --------------------------------------------------------
Xxxx and Xxxxxxx X'Xxxxxx 0.1250%
---------------------------------------------------------------- --------------------------------------------------------
Estate of Xxxxx Xxxxxx 0.5000%
---------------------------------------------------------------- --------------------------------------------------------
Xxxxx Xxxxxxxx 0.1250%
---------------------------------------------------------------- --------------------------------------------------------
Xxxxxx Xxxxxxx 0.1250%
---------------------------------------------------------------- --------------------------------------------------------
Xxxxxx Xxxxxxx 0.5000%
---------------------------------------------------------------- --------------------------------------------------------
Xxxxxxx XxXxxxxx 0.0100%
---------------------------------------------------------------- --------------------------------------------------------
Xxxxx Xxxxxx Xxxxxx 0.4000%
---------------------------------------------------------------- --------------------------------------------------------
Xxxxxx Xxxxx 3.0000%
---------------------------------------------------------------- --------------------------------------------------------
Xxx Xxxxx 1.7500%
---------------------------------------------------------------- --------------------------------------------------------
Xxxx Xxxxxx 3.0500%
---------------------------------------------------------------- --------------------------------------------------------
Xxxxxx Xxxxxx 1.0000%
---------------------------------------------------------------- --------------------------------------------------------
Xxxxxxx Xxxxxxxx 1.0000%
---------------------------------------------------------------- --------------------------------------------------------
Xxxxxxx Dublin 1.0000%
---------------------------------------------------------------- --------------------------------------------------------
Xxxxxxx Xxxxxxx 0.1250%
---------------------------------------------------------------- --------------------------------------------------------
Xxxxxxx Xxxxx 0.0100%
---------------------------------------------------------------- --------------------------------------------------------
Xxxx Xxxxxxxx 0.0250%
---------------------------------------------------------------- --------------------------------------------------------
Xxxx Xxxxxx 1.0000%
---------------------------------------------------------------- --------------------------------------------------------
Xxxxxxx Xxxx Xxxxxxx 0.0925%
---------------------------------------------------------------- --------------------------------------------------------
Xxxxx Xxxxxxx 0.0625%
---------------------------------------------------------------- --------------------------------------------------------
-----------------------------
(3) The Net Royalty Interest of Xxxxxxx Xxxxx has been previously acquired by
the Assignee in July 2002.
14
5. XXXXXX ROYALTY INTERESTS
The Xxxxxx Royalty Interest Holders own the following Xxxxxx Royalty Interests
in the Xxxxxx Royalties:
---------------------------------------------------------------- --------------------------------------------------------
XXXXXX ROYALTY INTEREST HOLDER XXXXXX ROYALTY INTEREST IN XXXXXX ROYALTIES
---------------------------------------------------------------- --------------------------------------------------------
Xxxxxx Group 98.5%
---------------------------------------------------------------- --------------------------------------------------------
Wicker Patents Owners (other than Xxxxx North America, Inc.) 1.5%(4)
---------------------------------------------------------------- --------------------------------------------------------
6. SDS INTEREST
SDS owns an Interest of 100% of the SDS Interest.
7. WICKER FAMILY INTERESTS
The Wicker Family own an Interest of 100% of the Wicker Family Interests.
(4) The Wicker Patent Owners are entitled to 1.5% of the purchase price (i.e.,
production cost plus xxxx-up) of any documents produced in respect of the
Xxxxxx IPR or one-half of any royalties paid to the Xxxxxx Group by third
parties with respect thereto, whichever is less.
15
SCHEDULE 4
THE INTEREST HOLDERS
1. THE WICKER PATENT OWNERS
The Estate
SMW Patent Corp.
Xxxxxx Xxxxxx
Document Security Systems, Inc.
Xxxxxxxx X. Xxxxxxx
Xxxxx North America, Inc.
2. THE XXXXXX GROUP
Xxxxxx X. Xxxxxx
Cord Xxxxx Zum Spreckel
Xxxxxxxxx Xxxxxxxxx (personally, and as the assignee of the Midwest Bank Note
Company)
T&T Associates, Inc.
Midwest Bank Note Company
3. THE GROSS ROYALTY INTEREST HOLDERS
The Estate
SMW Patent Corp.
Xxxxxx Xxxxxx
Document Security Systems, Inc.
Xxxxxx Group (c/o Xxxxxx X. Xxxxxx)
Xxxx Xxxxxxxx
Xxxxxx X. Xxxxxx
J. Xxxxx Xxxxxxx
Xxxxx Xxxxxx
Xxxxxxx Xx Xxxxxxx
Xxxxxxxxx Xxxxxx
Xxxxxxx Xxxxxx
Xxxxx Xxxxxx
Xxxxxxx Xxxxx
16
4. THE NET ROYALTY INTEREST HOLDERS
The Estate
Xxxxxx X' Xxxxxxxx
Estate of Xxxxxxxx Xxxxxx
Xxxxxxx Girthler, II
Xxxxxxx Girthler, III
Xxxxx Xxxxxx
Xxxxxx Xxxx, CPA
Xxxxxxx X'Xxxx
Xxxxxx Xxxx
Xxxxxxx X'Xxxxxxxx
Xxxxxxx Xxxx
Xxxx Xxxxxx Xxxxxx
Xxxxxxxxx Xxxxxxx
Xxxxxx Xxxxxxx
Xxxxx Xxxxxxxx
Xxxxxxx Xxxxx(5)
Xxxxx Xxxxxxx, Esq.
Xxxxxx Xxxxxxx
Xxxx and Xxxxxxx X'Xxxxxx
Estate of Xxxxx Xxxxxx
Xxxxx Xxxxxxxx
Xxxxxx Xxxxxxx
Xxxxxx Xxxxxxx
Xxxxxxx XxXxxxxx
Xxxxx Xxxxxx Xxxxxx
Xxxxxx Xxxxx
Xxx Xxxxx
Xxxx Xxxxxx
Xxxxxx Xxxxxx
Xxxxxxx Xxxxxxxx
Xxxxxxx Dublin
Xxxxxxx Xxxxxxx
Xxxxxxx Xxxxx
Xxxx Xxxxxxxx
Xxxx Xxxxxx
Xxxxxxx Xxxx Xxxxxxx
Xxxxx Xxxxxxx
5. THE XXXXXX ROYALTY INTEREST HOLDERS
The Xxxxxx Group (c/o Xxxxxx X. Xxxxxx)
The Wicker Patents Owners (other than Xxxxx North America, Inc.)
6. SDS
Secured Document Systems, Inc.
7. THE WICKER FAMILY
Xxxxxx Xxxxxx
Xxxx Xxxxxx
Xxxxxxxxx Xxxxxx
Xxxxxxx Xxxxxx
Xxxxx Xxxxxx
-----------------------------
(5) The Net Royalty Interest of Xxxxxxx Xxxxx has been previously acquired by
the Assignee in July 2002.
17
SCHEDULE 5
LIABILITIES
If any, to be inserted by Relevant Interest Holder:
18
AS WITNESS the hands of the Parties or their duly authorised representatives the
day and year set forth below.
RELEVANT INTEREST HOLDER:
[NAME]
______________________________
DATE: _______________________
ASSIGNEE:
DOCUMENT SECURITY SYSTEMS, INC.
By:______________________________
Name:
Title:
20
