The settlement agreement requires Crosshair and UUL to file a consent dismissal order dismissing both the Crosshair claim and the UUL counterclaim. Neither company paid any funds to the other pursuant to the terms of settlement.
Crosshair has also entered into a voting trust agreement. Pursuant to the 2010 voting trust agreement, Crosshair will either abstain from voting its shares in UUL or vote those shares in favor of UUL management’s proposals for a period of 36 months.
As per the original voting trust agreement between Crosshair and UUL, UUL is also required to either abstain from voting its shares in Crosshair or vote those shares in favor of Crosshair management’s proposals.
Pursuant to the settlement, for the next 12 months, both Crosshair and UUL are required to report on a monthly basis to the other in writing advising of the number of shares in the other they have purchased or sold in the preceding month.
If UUL fails to comply with its reporting obligation, following receipt of written notice from Crosshair of its failure to report, UUL has five calendar days to supply the information to Crosshair before the 2010 voting trust agreement becomes null and void.
Such a voiding of the 2010 voting trust agreement will have no bearing on the terms of the 2008 voting trust agreement. UUL will continue to be required to either abstain from voting its shares in Crosshair or vote its shares in favor of Crosshair management’s proposals.
