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Re: None

Monday, 03/05/2007 7:37:07 PM

Monday, March 05, 2007 7:37:07 PM

Post# of 63000
I suggest everylong on this board go back to read the settlement agreement very carefully at http://www.sec.gov/Archives/edgar/data/1156784/000114420407011059/v067509_ex10-1.htm.

1. The first and most important: It's recognized that RWT is the sole owner of trade secret. It also proved the validity of the technology RWT owns. Since the technology has already incorporated into ABB's product lines, ABB has to pay royalties starting from February 20, 2007. This part is already implied by the expression in this paragraphs. It does not have to be stated explicitly. How about those years since 2002 to last Friday, my guess is they have to pay RWT indirectly. My understanding is this: if ABB pay royalty for the past, it will become a fact that ABB infringed RWT's patents.

2. Section 9 is very interesting. It states that both parties should maintain confidential the terms of agreement, except legally required by SEC to minimize the exposure, in this case the only publicity is the PR Friday. The last Friday's PR was carefully crafted by and agreed by both parties. My whole impression of this section is that ABB was trying to muffle the negative effect by this lawsuit and settlement. ABB has to pay big price to RWT for not making big deal out of this settlement. THer will be no more PR related to this settlement from either party, as clearly stated in the agreement.

3. The tone of language of agreement and the only PR is very nice and positive, underlining possible working-together of both parties in the future. If you read enough settlement agreements, you will feel the difference.

4. As I stated in 1, RWT's technology is already welded into ABB's product line, there is no way or no reason for ABB to stop making profit from those products. Such a decision will not only affect company's profit but also affect customer satisfaction. So paying royalty for RWT's patent is a sure thing. Further more, the price and execution details should also be negociated and a agreeemnt is reached prior to the settlement. RWT must make sure that all the details worked out because they don't want be screwed again. The number must be so attractive that Walter can not refuse. My guess is that next PR could be royalty annoucement. Legally this one is isolated event from the settlement, as long as related to prior event, i.e. the patent infringement.

5. After last few years restructuring, ABB now is in the aquisition mode. RWT has technology and IP ABB wanted for their business growth, and could be a good candidate for aquisition. Today's PR of RWT's future acquisition could be a step to form a complete line of R&D, production ans service for RWT. This cou8ld make the checklist for acquisition looks perfect.

The company's future is bright ans we will be rich.
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