SettlementAgreement.doc

SettlementAgreement thissettlementagreementismadethis(m,d,y),betweenaaa,acorporationorganizedandexistingunderthelawsof(placename)andhavingitsregisteredofficeat(aaa),andbbb,ltd.,acorporationorganizedandexistingunderthelawsof(placename)andhavingitsregisteredofficeat(bbb)and whereas,in(year),ccc,inc.,acorporationorganizedandexistingunderthelawsofthestateof(placename)(ccc),bbb,andtheothershareholdersofaaa,enteredintothenihonccckkjointventureagreement,whichtheyamendedbythatcertainamendedjointventureagreementdated(m,d,y)(thesetwoagreementsandtheirincidentalandrelatedagreementsshallbereferredtocollectivelyhereinasthejva); whereas,aaaandbbbenteredintothatcertainmasterdistributoragreementdated(m,d,y)(thisagreementanditsincidentalandrelatedagreementsshallbereferredtocollectivelyhereinasthemda); whereas,ccc,aaa,andbbbterminatedtheirbusinessrelationshipsinvolvingcccputersoftwareandotherproducts(cccproducts)arisingoutofthejvaandmdaasof(m,d,y);and whereas,anumberofunresolvedissuesremainfromtheterminationofsaidjvaandmdaandthepartiesdesiretoresolvesaidissuesuponthetermsandconditionsdescribedbelow. now,therefore,itisagreedasfollows: section1.confirmation.cccterminatedsalesofcccproductsthroughdistributorsofaaaorthroughotherdistributorsin(placename)asof(m,d,y).thepartieshavediscussed,confirmed,andmutuallyagreeuponthefollowingfacts: 1.asaresultofbbbconveyingitssharesinaaatocccon(m,d,y),thejvawasamicablyterminated. 2.themdawasamicablyterminatedasof(m,d,y). 3.bbbhasintroducedandwillcontinuetointroduceanycustomersithasdevelopedpursuanttoitsactivitiesunderthemdatoaaaoritsdesigneeandwillassistintheorderlycontinuationofalltransactionsdealingwithcccproducts.however,aaaanditsdesigneeshallnotberesponsiblefororassumeanyofbbbsliabilities(notonlymonetaryliabilities,butserviceliabilities,andanyandallliabilitiesofanytypeandnature)toanyofbbbscustomersevenifaaaoritsdesigneereceivedanintroductiontothecustomerfrombbbandenteredintoabusinessrelationshipwithsaidcustomer. 4.pursuanttothetermsandconditionsofthisagreement,aaaagreestopaytobbbasumcertaintosettleanyclaimsarisingoutoftheterminationofthejvaandmda,ifany,andforbbbscustomerlist,goodwill,etc.(hereinafterreferredtocollectivelyassettlementproceeds).theparticularbreakdownofhowthesettlementproceedswillbeallocatedamongthevariousmatterswillbedeterminedupondiscussionsbetweenthepartiesheretoasprovidedinsection4below.uponaaaspaymentandbbbsreceiptofthesettlementproceeds,eachparty,representingallofeachpartysrespectivesubsidiaries,affiliatedpanies,directors,officers,andemployeesthereof,releasesandforeverdischargestheotherparty,representingallofsaidpartyssubsidiaries,affiliatedpanies,directors,officers,andemployeesthereof,forallclaimsarisingoutoforresultingfromtheterminationofthejvaandmda. 5.todatebbbhaspurchasedfromcccandretainsinitscurrentinventoryacertainquantityofacccproductcalledachipbundle.thepartiesagreethatbbbshallbeentitledtocontinuetosellitscurrentinventoryofsaidchipbundlesin(placename).bbbagreesnottomakeadditionalnewpurchasesofsaidchipbundlesandaaaagreesnottopurchaseandwillnotallowccctopurchaseanychipbundlesfrombbb. 6.thepartiesheretoagreethatasbetweenthemtherearenoclaims,debts,obligations,orliabilitiesarisingoutoftheterminationofthejvaandmdaotherthanthosespecificallyidentifiedinthisagreement. section2.customerintroductionassistance. 1.bbbhasdisclosedandshalldisclosetoaaaoritsdesigneethefollowinginformationimmediatelyafterthepartiesexecutethisagreement: a.alistofallcustomerswithwhombbbhasorhadbusinesstransactionsunderthemda; b.thecontentsofanycontractsormaintenanceagreementsbetweenbbbandanycustomersidentifiedintheprecedingclause;and c.alistofpotentialcustomersdiscoveredduringbbbsbusinessactivitiesduringtheperiodfrom(m,d,y)to(m,d,y)withwhombbbbelievesthataaaoritsdesigneehaveachancetoconcludeanagreementandareportonthestatusofallnegotiationsinprogress. 2.bbbagreesthataaaoritsdesigneearefreetoconcludecontractsforcccproductsandotherproductswiththepersonsorentitiesidentifiedbybbbintheprecedingclausesandbbbagreestocooperateinsuchactivitieswithaaaanditsdesignee. 3.thepriorclausesnotwithstanding,upontheexpirationoftheone(1)yeartermofanymaintenanceagreementsidentifiedinclause1.b.ofthissection2above,aaaoritsdesigneeshallsucceedtotherightsofbbbundersaidmaintenanceagreements.however,aaaoritsdesigneemayproposeinadvancewhatevertermsandconditionsitmayrequireinordertosucceedtosaidmaintenanceagreements.inaddition,bbbagreestocooperatewithaaaoritsdesigneeintheorderlysuccessionofsaidmaintenanceagreementswithoutadditionalpensationunlessthepartiesmutuallydetermineinwritinginadvancethatbbbshouldreceiveandthataaashouldpayadditionalpensationforanysuchservices. section3.settlementproceeds. 1.aaaherebyrecognizesthatithasadutytopaytobbbassettlementproceedsthesumof().saidsettlementproceedsshallbepaidbywiretransfertoanaccountdesignatedbybbbby(m,d,y). 2.aaaherebyagreesthatitoritsdesigneeshallmakepaymenttobbbasprovidedintheprecedingclause.moreover,aaaagreesthatitwillbearthecostofthetelegraphictransferhandlingcharges. section4.allocationofsettlementproceeds.basedupondiscussionsbetweenthepartiesregardingthecustomerinformationdisclosedtoaaaoritsdesigneepursuanttosection1.4ofthisagreement,thepartieswilldecideby(m,d,y)theparticularbreakdownofhowthesettlementproceedswillbeallocatedamongthevariousmatters(thefinalallocation).furthermore,inaccordancewiththefinalallocationasdeterminedhereinabove,aaaoritsdesigneeandbbbby(m,d,y)shallprepareandconcludeasettlementagreementrelatingtothesaleofbbbscustomerlist,goodwill,etc.toaaaoritsdesignee(customerlistsettlementagreement)andasettlementagreementrelatingtojvaandmdaterminationclaims,ifany(terminationsettlementagreement).thesettlementproceedspayabletobbbbyaaapursuanttothisagreementshallbeallocatedrespectivelytothecustomerlistsettlementagreementandtheterminationsettlementagreementpursuanttothefinalallocationdeterminedhereinabove.ifthefinalallocationofsettlementproceedsresultsinanincreaseinanygovernmentaltaxes,duties,licenses,fees,excises,ortariffsnoworhereafterimposedonthepaymentofthesettlementproceeds,suchchargesshallbepaidbythepartyobligatedbylawtomakesuchpayment,orinlieuthereof,thepartyobligatedbylawtomakesuchpaymentshallprovideanexemptioncertificateacceptabletotheotherpartyandtheapplicableauthority.ifrevenuestampsarerequiredunder(placename)eselawtobeaffixedtothisagreement,thepartiesshallberequiredtobearthecostofsuchstampsforthecopyintheirpossession.eachpartyshallberesponsibleforallcostsandexpensesincurredonitsbehalf,includingbutnotlimitedtoattorneysfees,relatedtothisagreementandthenegotiationsandconsultationsleadinguptotheformationofthisagreement. section5.lawgoverning.thissettlementagreementshallbegovernedbyandconstruedinaccordancewiththelawsof(placename).thepartiesheretoherebyagreethatanysuitsbroughthereundershallbebroughtinthetokyodistrictcourtintokyo,(placename),whichwillhavesoleandexclusivejurisdictionforthefirstinstance. heeventasuitoractionisbroughtbyanypartyunderthisagreementtoenforceanyofitsterms,orinanyappealtherefrom,itisagreedthattheprevailingpartyshallbeentitledtoreasonableattorneysfees. section7.notices.anynoticeunderthisagreementshallbeinwritingandshallbeeffectivewhenactuallydeliveredinperson,orthenextbusinessdayfornoticessentbytelefaxandpromptlyconfirmedinamanuallysignedwriting,orthree(3)daysafterbeingdepositedinthemail,registeredorcertified,postageprepaidandaddressedtothepartyattheaddressstatedinthisagreementorsuchotheraddressasanypartymaydesignatebywrittennoticetotheother. section8.waiver.failureofanypartyatanytimetorequireperformanceofanyprovisionofthisagreementshallnotlimitthepartysrighttoenforcetheprovision,norshallanywaiverofanybreachofanyprovisionbeawaiverofanysucceedingbreachofanyprovisionorawaiveroftheprovisionitselfforanyotherprovision. section9.assignment.exceptasotherwiseprovidedwithinthisagreement,neitherpartyheretomaytransferorassignthisagreementwithoutpriorwrittenconsentoftheotherparty. section10.presumption.thisagreementoranyprovisionthereofshallnotbeconstruedagainstanypartyduetothefactthatsaidagreementoranyprovisionthereofwasdraftedbysaidparty. section11.titlesandcaptions.allarticle,sectionandparagraphtitlesorcaptionscontainedinthisagreementareforconvenienceonlyandshallnotbedeemedpartofthecontextnoraffecttheinterpretationofthisagreement. nounsandplurals.allpronounsandanyvariationsthereofshallbedeemedtorefertothemasculine,feminine,neuter,singularorpluralastheidentityofthepersonorpersonsmayrequire. section13.entireagreement.thisagreementcontainstheentireunderstandingbetweenandamongthepartiesandsupersedesanypriorunderstandingsandagreementsamongthemrespectingthesubjectmatterofthisagreement. section14.agreementbinding.thisagreementshallbebindingupontheheirs,executors,administrators,successorsandassignsofthepartieshereto. section15.furtheraction.thepartiesheretoshallexecuteanddeliveralldocuments,providea