Simulations Plus Reaches Termination And Non-Assertion Agreement With TSRL

(RTTNews) - Simulations Plus Inc. (SLP) announced that it has entered into a Termination and Non-Assertion Agreement with TSRL Inc., a Michigan corporation.

As per the terms of the Agreement, the Company and TSRL agreed to terminate that certain Exclusive Software Licensing Agreement dated June 30, 1997, under which TSRL licensed to the Company certain Software Technology and Databases, and pursuant to which the Company paid royalties to TSRL.

Under to the Agreement, TSRL has relinquished any rights and claims to any GastroPlus Products, and to any claims to royalties or other payments under the License Agreement. Pursuant to the Agreement, the Company agreed not to assert any claims against TSRL or its affiliates on account of the development, marketing, sale or use by TSRL or its affiliates of any content licensed by TSRL to the Company pursuant to the License Agreement, provided that the foregoing does not apply to any development, marketing, sale or use of GastroPlus Products by TSRL, its affiliates, licensees, or direct or indirect customers or distributors.

As per the Agreement, the company will pay TSRL total consideration of $6 million as follows: by May 20, 2014, $3.5 million, comprised of cash in the amount of $2.5 million and the issuance of $1 million worth of the Company's common stock (164,745 shares of the Company's common stock based upon the April 25, 2014 closing price per share of the Company's common stock of $6.07 per share); $750,000 payable on or before April 25, 2015; $750,000 payable on or before April 25, 2016, and $1 million payable on or before April 25, 2017.