Can someone explain how to set up multiple SM 9.6x application servers to use an HWLB

I have recently upgraded our SM 9.50 system and the application server was originally configured for software vertical load blancing. I want to configure 2 application servers at 2 different locations using a spanned vlan and VIP on an HWLB (citrix netscaler) with 300 concurrent connections each. SM 9.6x documentation supports this for an F5, but it is not clearly explained. The documentation even has 2 great diagrams, but no detail. The documentation also states that if using an HWLB, you cannot use software load balancing. How could I get 300 concurrent connections if the max for a single servlet is 100.  This means I would need multiple vm servers instead of using servlets. I still wonder where and how the license file is referenced. If the license file is sitting on one server and only referenced on one server, that server is a single point of failure. This means Service Manager cannot ever be configured for high availability. If that one host goes down, no other connections can be made, which also means users connected to that host are dropped and can't be regained. Has anyone done this and if so, how? Samples of an SM.ini and SM.cfg file would be helpful as well.