MDA and Loral Dispute Resolution and Settlement Allocation Agreement
MDA and Loral have agreed to jointly pay a $100 million settlement, with each party initially contributing $50 million. The agreement outlines a process for resolving how the final settlement amount will be divided, starting with mediation and, if needed, arbitration. The arbitrator will determine the value of a covenant not to sue for certain patent claims and allocate costs accordingly. Each party is guaranteed to pay at least $15 million. The agreement is signed by representatives of both companies and dated August 14, 2014.
MDA/Loral Dispute Resolution
(1) Each party agrees to advance one-half of a $100 million settlement payment ($50 million by each of MDA and Loral).
(2) The parties shall submit the dispute over the final division of the $100 million to [redacted] to attempt to mediate and then, if necessary, to arbitrate the dispute.
(3) The arbitrator will first decide the value to SS/L (out of the $100 million) of the covenant not to sue for infringement of the nine patents asserted in Case 1 and Case 2, which portion shall be borne by MDA.
(4) The balance of the $100 million will be allocated equally between Case 1 and Case 2, and the Case 1 portion shall be borne by Loral.
(5) With respect to the Case 2 portion, the arbitrator will decide what (if any) portion shall be borne by Loral.
(6) The parties are free to retain [redacted] and [redacted] if they so choose.
(7) The minimum payment either party will make is 15m.
/s/ Michael Targoff
/s/ Daniel Friedmann
August 14, 2014
