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EXHIBIT 10.50
ASSET PURCHASE AGREEMENT
- BY AND BETWEEN -
INTERPLAY ENTERTAINMENT CORP.
- AND -
BETHESDA SOFTWORKS LLC
DATED AS OF APRIL 4, 2007
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ASSET PURCHASE AGREEMENT
This ASSET PURCHASE AGREEMENT (this "AGREEMENT") is entered into
as of
April 4, 2007 (the "EFFECTIVE Date") between BETHESDA SOFTWORKS
LLC, a Delaware
limited liability company (the "PURCHASER"), and INTERPLAY
ENTERTAINMENT CORP.,
a Delaware corporation (the "SELLER"). Purchaser and Seller are
sometimes
referred to herein individually as a "PARTY" and collectively as
the "PARTIES."
RECITALS:
A. On June 29, 2004, Seller and Purchaser entered into an
Exclusive
Licensing Agreement, amended August 19, 2004 (as amended to
date, the "EXCLUSIVE
LICENSING AGREEMENT"), whereby Purchaser acquired exclusive,
worldwide,
perpetual unrestricted intellectual property rights in and to
all future uses of
every kind to the brand and interactive entertainment software
property known as
"FALLOUT" and to the "FALLOUT" trademark, to the extent
expressly provided for
under the Exclusive Licensing Agreement. Through and as a result
of the
Exclusive Licensing Agreement, Purchaser has the unfettered
right, subject to
license royalties, to use and exploit the Fallout Intellectual
Property (defined
below) and is prepared to purchase actual legal ownership of all
right, title,
and interest in and to the Fallout Intellectual Property and in
the other
Acquired Assets (defined below).
B. The Seller and Purchaser entered into arms' length
negotiations for
the sale of the Fallout Intellectual Property which would
eliminate risk to the
Seller concerning the timing and amount of any royalties, if
any, to be paid in
the future under the Exclusive Licensing Agreement, and provide
the Seller the
fair value of the Fallout Intellectual Property to the extent
Purchaser does not
already effectively have it under the Exclusive Licensing
Agreement, and would
eliminate Purchaser's potential future royalty obligations to
the Seller.
C. On November 1, 2006, while the negotiations between the
Seller and
Purchaser were ongoing, four petitioning creditors filed an
involuntary
bankruptcy petition under Chapter 7 of Title 11 of the United
States Bankruptcy
Code (the "BANKRUPTCY CODE") against Seller (the "INVOLUNTARY
PETITION") in the
United States Bankruptcy Court for the Central District of
California, Case No.
06-11994 TA (the "BANKRUPTCY CASE"), and on November 30, 2006,
Seller answered
the Involuntary Petition in the Bankruptcy Case by filing an
Answer of Alleged
Debtor To Involuntary Petition seeking to dismiss the Bankruptcy
Case.
D. The Seller desires, based on the fair value of the Acquired
Assets,
to monetize the benefit of its bargain with Purchaser under the
Exclusive
Licensing Agreement by converting the possibility of contingent
future payments
from Purchaser into certain amounts to be paid to the Seller by
Purchaser as
provided in this Agreement. Seller recognizes the uncertainties
of receiving
further advances and/or future game royalties under the
Exclusive Licensing
Agreement, and Purchaser is willing to acquire from Seller, as
permitted under
Sections 303(f) and 549(b) of the Bankruptcy Code, all right,
title and interest
in such Acquired Assets, for the cash consideration described
herein, which the
Parties agree represent the fair value of the Acquired
Assets.
E. Purchaser and Seller enter into this Agreement in good faith
and for
bona fide business reasons and purposes.
AGREEMENT:
NOW, THEREFORE, in consideration of the promises and mutual
covenants
and agreements set forth in this Agreement, the receipt and
sufficiency of which
are hereby acknowledged, the Parties agree as follows:
ARTICLE I
DEFINITIONS
Capitalized terms used but not otherwise defined in this
Agreement have
the respective meanings given thereto in EXHIBIT A to this
Agreement.
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ARTICLE II
PURCHASE AND SALE; CLOSING
2.1 ACQUIRED ASSETS. Upon the terms and subject to the
conditions of
this Agreement, and effective upon the Closing Date, (x) Seller
hereby
irrevocably sells, assigns, transfers, conveys and delivers to
Purchaser on the
Closing Date, and (y) Purchaser hereby purchases, acquires and
accepts from
Seller, all of Seller's right, title and interest in and to all
of the Acquired
Assets. As used herein, the term "ACQUIRED ASSETS" shall mean,
collectively, the
Purchased Intellectual Property, the other Assets identified on
PART 2.1 OF THE
DISCLOSURE SCHEDULE, and the Enforcement Rights.
2.2 ASSUMED LIABILITIES. Upon and subject to the terms,
conditions,
representations, and warranties of Seller contained herein, and
subject to
SECTION 2.3, Purchaser agrees, effective at the time of Closing,
to assume only
the following liabilities (collectively, the "ASSUMED
LIABILITIES"): all filing
fees for transferring ownership of the Fallout Intellectual
Property arising and
accruing on and after the Closing and for maintaining and
continuing to pursue
for Purchaser's benefit any registrations or applications
relating to the
Fallout Intellectual Property.
2.3 EXCLUDED LIABILITIES. Notwithstanding any provision in
this
Agreement or anything herein or otherwise to the contrary,
Purchaser is assuming
only the Assumed Liabilities and is not assuming, nor will
Purchaser be
obligated to pay, perform, or discharge any other liability or
obligation of
Seller or any Affiliate of Seller or of any predecessor
stockholder, or other
owner of all or part of Seller or any Affiliate of Seller
(collectively, the
"SELLER GROUP"), of any kind or nature whatsoever, whether
direct or indirect,
known or unknown, absolute or contingent, presently in existence
or accrued, or
arising or asserted after the date hereof or on or after the
Closing
(collectively, the "EXCLUDED LIABILITIES"). Any and all such
other liabilities
and obligations shall be retained by and remain obligations and
liabilities of
the Seller Group.
2.4 CLOSING. The consummation of the purchase and sale of the
Acquired
Assets in accordance with this Agreement and the closing of the
other
transactions provided for hereunder (the "CLOSING") shall take
place at 10:30
a.m., local time, at the offices of DLA Piper US LLP, 1775
Wiehle Avenue, Suite
400, Reston, Virginia 20190 on APRIL 6, 2007, or at such other
later time and
place as the Parties shall agree in writing, subject in each
case to
satisfaction or waiver by the Seller and Purchaser, as
applicable, of the
conditions precedent to closing set forth in SECTION 6.1 and
SECTION 6.2,
respectively. The actual date of the Closing shall be referred
to as the
"CLOSING DATE" and the Closing shall be deemed effective as of
12:01 a.m. on the
Closing Date. The Parties hereby agree to deliver at the Closing
such documents,
certificates of officers and other instruments as are set forth
elsewhere in
this Agreement and as may reasonably be required to effect the
transfer by the
Seller of the Acquired Assets to the Purchaser and to vest full
title in and to
the Acquired Assets in Purchaser, free and clear of any and all
Encumbrances.
All events which shall occur at the Closing shall be deemed to
occur
simultaneously.
2.5 SELLER'S CLOSING DELIVERIES. At the Closing, Seller will
deliver to
Purchaser (in addition to a duly executed copy of this
Agreement, together with
all final exhibits, annexes, and schedules hereto) the
following, with all
documents and instruments below to be duly executed by the
Seller where
appropriate and notarized where indicated in the exhibits,
annexes, or schedules
to this Agreement:
(a) the Trademark License Agreement, in the form attached
hereto as EXHIBIT B-1 (the "LICENSE BACK Agreement");
(b) the Special Rules System License Agreement, in the form
attached hereto as EXHIBIT B-2 (the "SPECIAL RULES LICENSE
AGREEMENT");
(c) the bill of sale, in the form attached hereto as EXHIBIT
B-3 (the "BILL OF SALE");
(d) the instrument of assignment and assumption, in the form
attached hereto as EXHIBIT B-4 (the "INSTRUMENT OF ASSIGNMENT
AND
ASSUMPTION");
(e) the applicable assignment agreements designated by the
Purchaser, in the forms attached hereto as EXHIBIT C-1 and
EXHIBIT C-2
(the "ASSIGNMENTS"), respectively;
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(f) a power of attorney in the form attached hereto as
EXHIBIT
C-3;
(g) all tangible embodiments of the Purchased Intellectual
Property, including, without limitation, the Software and
Documentation
included in the Purchased Intellectual Property, but with
respect to
Third Party Intellectual Property Rights only to the extent
Seller has
the right in connection therewith to provide same;
(h) all other tangible and intangible property included in
the
Purchased Intellectual Property, but with respect to Third
Party
Intellectual Property Rights only to the extent Seller has the
right in
connection therewith to provide same;
(i) an officer's and secretary's closing certificate in form
and substance acceptable to Purchaser;
(j) the Escrow Agreement, in the form attached hereto as
EXHIBIT D; and
(k) such other instruments, documents, certificates and
closing deliverables as Purchaser may reasonably request or may
require
in connection with this Agreement and the transactions provided
for
herein.
2.6 PURCHASER'S CLOSING DELIVERIES. At the Closing, Purchaser
will
deliver to the Seller (in addition to a duly executed copy of
this Agreement,
together with all final exhibits, annexes, and schedules hereto)
the following,
with all documents and instruments below to be duly executed by
the Purchaser
where appropriate and notarized where indicated in the annex,
schedules, or
exhibits to this Agreement:
(a) the License Back Agreement;
(b) the Special Rules License Agreement;
(c) the Bill of Sale;
(d) the Instrument of Assignment and Assumption;
(e) the Trademark Assignment Agreement;
(f) the Copyright Assignment Agreement;
(g) the Escrow Agreement; and
(h) the First Installment, payable upon the Closing under
SECTION 2.7 below.
2.7 PURCHASE PRICE. In addition to the Assumed Liabilities,
the
purchase price for the Acquired Assets (together, the "PURCHASE
PRICE") shall be
Five Million Seven Hundred Fifty Thousand and 00/100 Dollars
($5,750,000.00),
payable in three installments as provided herein, upon the terms
and conditions
set forth in this Agreement and in reliance on the
representations, warranties,
covenants and agreements of Seller. At the Closing, the Acquired
Assets
automatically will be transferred to, and all right, title and
interest therein
immediately vested in, the Purchaser.
(a) FIRST INSTALLMENT. The Purchaser shall deliver the sum
of
TWO MILLION AND 00/100 DOLLARS ($2,000,000.00) of the Purchase
Price
(the "FIRST INSTALLMENT") in immediately available U.S.
dollar-denominated funds by wire transfer as follows: (i) TWO
HUNDRED
THOUSAND AND 00/100 DOLLARS ($200,000.00) to an account as
specified on
the Payment Schedule attached hereto and (ii) ONE MILLION EIGHT
HUNDRED
THOUSAND AND 00/L00 DOLLARS ($1,800,000.00) to a separate
segregated
escrow account ("ESCROW ACCOUNT") established pursuant to the
Escrow
Agreement (at EXHIBIT D), as specified in the PAYMENT SCHEDULE
attached
hereto, with said funds to be used to obtain full and
complete
releases, releases of liens, satisfactions of judgments or
discharges
of liabilities (in the form of the releases attached to the
Escrow
Agreement) as to all of the Encumbrances listed in PART 2.7(A)
OF THE
DISCLOSURE SCHEDULE as promptly as practicable following the
Closing
Date.
(b) SECOND INSTALLMENT. Upon entry by the court in the
Bankruptcy Case of a conditional order of dismissal in a
form
reasonably satisfactory to the Purchaser ("CONDITIONAL ORDER"),
the
Purchaser shall deliver the sum of TWO MILLION AND 00/100
DOLLARS
($2,000,000.00) of the Purchase Price the "SECOND INSTALLMENT")
in
immediately available U.S. dollar-denominated funds by wire
transfer to
the
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Escrow Account, with said funds to be used to satisfy the
requirements
of the Conditional Order. In the event the Bankruptcy Case is
not
dismissed pursuant to a final, non-appealable order (FINAL
DISMISSAL
ORDER") within ninety (90) days from the date of issuance of
the
Conditional Order, any funds remaining in the Escrow Account
shall
thereafter be distributed only as directed by the court in
the
Bankruptcy Case.
(c) THIRD INSTALLMENT. The balance of the Purchase Price in
the sum of ONE MILLION SEVEN HUNDRED AND FIFTY THOUSAND AND
00/100
DOLLARS ($1,750,000.00) shall be due, owing, and payable ninety
(90)
days following issuance of a Final Dismissal Order ("THIRD
INSTALLMENT
DATE") on condition that (i) the Seller provided written
evidence,
reasonably satisfactory to Purchaser, that the Encumbrances
listed in
PART 2.7(A) OF THE DISCLOSURE SCHEDULE have been released,
satisfied or
discharged in full and releases of liens and satisfactions of
judgments
have been filed with all applicable courts, Secretaries of State
or
other entities, (ii) no new bankruptcy or insolvency
proceedings
against Seller have been filed, (iii) no Encumbrances or
challenges of
any kind exist or have arisen with respect to Purchaser's clear
title
and ownership of the Acquired Assets, and (iv) the Seller then
remains
in compliance with all of its covenants under this Agreement and
all
related agreements. If such conditions are met to
Purchaser's
satisfaction, then the Purchaser shall deliver ONE MILLION
SEVEN
HUNDRED FIFTY THOUSAND AND 00/100 DOLLARS ($1,750,000.00) in
immediately available U.S. dollar-denominated funds by wire
transfer as
specified on the Payment Schedule attached hereto (the
"THIRD
INSTALLMENT"). Whether or not the contingent Third Installment
is
earned, paid or released, if at any time any Encumbrances or
any
challenges to Purchaser's clear title and ownership of any of
the
Acquired Assets arise after the Third Installment Date, the
Seller
shall take immediate action to resolve and fully discharge and
cause to
be released any and all such Encumbrances and/or challenges and
ensure
to Purchaser's satisfaction that there are no Encumbrances
on
Purchaser's clear title to and unencumbered ownership of the
Acquired
Assets.
2.8 EXCLUSIVE LICENSING AGREEMENT. Effective automatically
upon
Closing, Purchaser shall have no obligations to pay any
consideration under the
Exclusive Licensing Agreement, and the Exclusive Licensing
Agreement shall be
deemed superseded by this Agreement and in the event of a
conflict of meaning,
the terms of this Agreement shall control; PROVIDED, HOWEVER,
that if in
connection with or as the result of any bankruptcy proceeding or
liquidation,
dissolution, or in connection with any other insolvency
proceeding, fraudulent
conveyance claim, or other claim or action, any court,
bankruptcy trustee, or
other applicable Person causes this Agreement and the
transactions hereunder to
be voided, nullified, or otherwise unwound or overturned for any
reason under
federal or state law, then notwithstanding anything herein or
otherwise to the
contrary, (x) all of Purchaser's licenses, rights and other
privileges under the
Exclusive Licensing Agreement automatically shall be reinstated
and deemed for
all purposes to have remained in full force and effect and not
to have been
superseded or otherwise impacted in any way by this Agreement,
and (y) any and
all payments made under this Agreement automatically shall be
deemed to be and
constitute royalty payments that may become due and payable to
the Seller and
advance payments recoverable against and applied to any and all
payment
obligations of Purchaser to the Seller in accordance with the
Exclusive
Licensing Agreement. With respect to such advance payments,
Purchaser shall be
deemed to be and constitute a secured creditor of the Seller and
shall be
entitled to a first priority lien over all of the Fallout
Intellectual Property
and entitled hereby to make such security interest filings under
applicable
federal or state law (including but not limited to with the
United States Patent
and Trademark Office and Copyright Office and with any and all
corresponding or
similar bodies outside of the United States) with respect to all
registered
Fallout Intellectual Property as it may deem necessary or
appropriate to perfect
such security interests. Without limiting the foregoing, any
obligation by the
Purchaser to pay royalties or any other monies under the
Exclusive Licensing
Agreement if reinstated is void. To the fullest extent possible,
the Seller
shall waive all claims to royalties or any other monies that
ever may be due
under the Exclusive Licensing Agreement and hereby accepts the
payments made
under this Agreement to constitute full payment of royalties or
other monies due
thereunder.
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ARTICLE III
REPRESENTATIONS AND WARRANTIES OF SELLER
Seller represents and warrants to the Purchaser that, on and as
of the Effective
Date and as of the Closing, the statements contained in sections
3.1 through
3.22 of this ARTICLE III are true and correct in all respects,
except as set
forth in the Seller's Disclosure Schedule attached hereto (the
"DISCLOSURE
SCHEDULE").
3.1 DUE INCORPORATION. Seller is a corporation duly organized,
validly
existing and in good standing under the applicable laws of the
State of
Delaware. Seller has all requisite corporate power and authority
to own, lease
and operate its properties and to carry on and operate its
business, operations,
and affairs as now conducted and to enter into this Agreement
and all agreements
and instruments to be entered into or delivered under this
Agreement by the
Seller (collectively, the "ANCILLARY AGREEMENTS") and to perform
and discharge
its obligations hereunder and under all Ancillary Agreements.
Seller is duly
licensed or qualified as a foreign corporation in good standing
in the State of
California.
3.2 AUTHORITY; NO VIOLATION; BINDING OBLIGATION.
(a) All corporate actions necessary to authorize the
execution
and delivery by Seller of this Agreement and the Ancillary
Agreements
and the performance of its obligations hereunder and thereunder
have
been duly taken.
(b) The execution, delivery, and performance of this
Agreement
and the Ancillary Agreements and the performance of Seller's
covenants
and agreements herein and therein contained do not and will not
(i)
contravene or conflict with or constitute a violation of any
provision
of applicable law binding upon or applicable to the ownership of
the
Acquired Assets or the Seller's business; (ii) conflict with,
result in
a breach of, constitute a default under or give rise to any
right of
termination, cancellation or acceleration of any right or
obligation of
Seller relating to the Acquired Assets or Assumed Liabilities or
to a
loss of any benefit relating to the Acquired Assets or
Assumed
Liabilities to which Seller is entitled under any provision of
any
agreement, contract or other instrument or relating to any of
the
Acquired Assets; (iii) result in the creation or imposition of
any
Encumbrance on any Acquired Asset; or (iv) conflict with or
violate any
provision of the articles of incorporation, bylaws, or other
governing
documents of the Seller as in effect immediately prior to the
Closing.
(c) This Agreement and each of the Ancillary Agreements are
legal, valid and binding obligations of Seller.
(d) Seller has not received any notice of non-compliance not
previously corrected with respect to the Acquired Assets under
any
applicable law.
3.3 LITIGATION. Except for the Bankruptcy Case and
Encumbrances
identified in PART 2.7(A) OF THE DISCLOSURE SCHEDULE, there are
no Legal
Proceedings pending, or to the knowledge of the Seller,
threatened against or
relating to the Seller in connection with this Agreement or any
of the Acquired
Assets, whether at law, in equity, or before any governmental
authority, nor is
there a basis for any of the foregoing. Seller is not, in
connection with the
Acquired Assets, in default with respect to any judgment,
injunction, order or
decree of any court or any governmental authority,
instrumentality, or court by
which it or any of the Acquired Assets is bound or subject.
3.4 TITLE TO ACQUIRED ASSETS. Except for the Encumbrances
identified in
PART 2.7(A) OF THE DISCLOSURE SCHEDULE, Seller has good and
marketable title to
the Acquired Assets, free and clear of any Encumbrances, and at
the Closing,
Purchaser will receive good and marketable title to the Acquired
Assets, free
and clear of any Encumbrances, except for the Encumbrances
identified in PART
2.7(A) OF THE DISCLOSURE SCHEDULE.
3.5 INSURANCE CLAIMS. There are no pending insurance claims for
losses
related to the Acquired Assets.
3.6 OWNERSHIP. The Seller owns or otherwise has valid and
legally
enforceable rights by license to use the Purchased Intellectual
Property. The
Seller is the sole owner of all of the Purchased Intellectual
Property.
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3.7 INBOUND LICENSES AND RIGHTS. Set forth in PART 3.7 OF
THE
DISCLOSURE SCHEDULE is a list and brief description of all Third
Party
Intellectual Property Rights used in connection with the Fallout
Intellectual
Property as of the Closing Date, and identifies any licenses or
other agreements
relating thereto, true, correct and complete copies of which
licenses or other
agreements are annexed to PART 3.7 OF THE DISCLOSURE SCHEDULE.
The Seller has
not breached any of the licenses or other agreements governing
such Third Party
Intellectual Property Rights, and, to the knowledge of the
Seller, no other
party to those agreements has breached those agreements. No
Third Party
Intellectual Property of any kind or nature is as of the Closing
Date or
historically has been used by the Seller in connection with the
Fallout
Intellectual Property. No part of the Purchased Intellectual
Property has been
placed in (or is otherwise subject to) any escrow arrangement of
any kind for
the benefit of any third party.
3.8 NO RESTRICTIONS. Other than under the Exclusive Licensing
Agreement
and the Encumbrances identified in PART 2.7(A) OF THE DISCLOSURE
SCHEDULE, the
Purchased Intellectual Property is free of any and all royalty
and other payment
obligations and other Claims or Encumbrances and, without
limiting the
generality of the foregoing, is not subject to any limitations
or restrictions
on Seller's use. There is no Legal Proceeding, order, agreement
or other similar
arrangement that prohibits or restricts the Seller (x) from
using the Purchased
Intellectual Property or developing, licensing, transferring or
otherwise
exploiting any Software, properties, or other assets relating to
the Fallout
Intellectual Property anywhere in the world or (y) from any use
of the Purchased
Intellectual Property anywhere in the world (except that this
representation is
made only to the Seller's knowledge with respect to Third Party
Intellectual
Property Rights). No Person has any rights in the Fallout
Intellectual Property
or in any of the other Purchased Intellectual Property that
could cause any
reversion or renewal of rights in favor of that Person or
termination of the
Seller's or, following the Closing, the Purchaser's rights in
the Fallout
Intellectual Property or in any of the other Purchased
Intellectual Property.
3.9 EFFECT OF CLOSING. Upon and after the Closing, the Purchaser
will
be the sole owner of, and will have valid and marketable title
to, the Purchased
Intellectual Property, and will have the full right to use,
license and transfer
the Purchased Intellectual Property in the same manner and on
the same terms
that the Seller had immediately prior to the Closing. The Seller
is not legally
bound by any agreements or obligations under which the
occurrence of the Closing
would (i) obligate the Seller or the Purchaser to license or
otherwise grant
rights to any other Person in any Fallout Intellectual Property
(in any case,
whether owned or used by the Seller or Purchaser), (ii) entitle
any Person to a
release of any source code escrow, (iii) result in any Claim or
other
Encumbrance on the Purchased Intellectual Property, (iv) give
rise to any right
of any third party to terminate, or impair in any material
manner, any Third
Party Intellectual Property Rights included in the Purchased
Intellectual
Property or otherwise contravene or conflict with Purchaser's
right to enjoy the
benefit of the Third Party Intellectual Property Rights, or (v)
otherwise
increase any burdens or decrease any rights relating to the
Fallout Intellectual
Property or any of the other Purchased Intellectual Property in
any material
manner.
3.10 PERFECTION OF OWNERSHIP RIGHTS. With respect to the
Fallout
Intellectual Property:
(a) ASSIGNMENTS. PART 3.10 OF THE DISCLOSURE SCHEDULE
separately lists all other written assignments, if any, Seller
has
obtained to establish the Seller's ownership rights in the
Fallout
Intellectual Property.
(b) EFFECT OF ASSIGNMENTS. In each case in which the Seller
has acquired ownership of any material Intellectual Property
from any
Person, other than a license of the Third Party Intellectual
Property
Rights, the Seller has obtained a valid and enforceable
assignment
sufficient to irrevocably transfer the applicable rights in
that
Intellectual Property to the Seller. If the Seller has so
acquired
Registered Intellectual Property, the Seller has, when required
by
applicable law, duly recorded each of these assignments with
the
appropriate governmental agency, and listed these assignments in
PART
3.10(B) OF THE DISCLOSURE SCHEDULE.
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3.11 REGISTERED INTELLECTUAL PROPERTY. PART 3.11 OF THE
DISCLOSURE
SCHEDULE separately lists (x) all Registered Intellectual
Property included
within the Purchased Intellectual Property, as well as (y)
certain additional
Fallout Intellectual Property.
(a) FEES AND APPLICATIONS. All necessary registration,
maintenance, renewal, and annuity fees and taxes due as of the
Closing
Date, have been paid, and all necessary documents have been
filed, in
connection with the Registered Intellectual Property. In
connection
with the Registered Intellectual Property, all registrations are
in
force and all applications for the same are pending in good
standing,
and no actions for reissuance, reexamination or opposition are
pending
or threatened with respect to any issued registrations or
pending
applications.
(b) LIST OF MAINTENANCE ACTIONS. PART 3.11(B) OF THE
DISCLOSURE SCHEDULE accurately and completely lists all actions
that,
as of the Closing Date, must be taken within ninety (90) days
after the
date of this Agreement relating to the payment of any fees or
taxes or
the filing of any documents necessary or appropriate to
maintain,
perfect or renew any Registered Intellectual Property with an
official
office (e.g., patent or trademark office).
3.12 VALIDITY. All registered copyrights, trademarks, and
service marks
(and all applications related to any of the foregoing) included
in the Fallout
Intellectual Property are subsisting and valid under applicable
law for those
respective categories of Intellectual Property. There are no
facts or
circumstances that would render any of the Purchased
Intellectual Property
invalid or unenforceable, except that with respect to the Third
Party
Intellectual Property, this representation is made only to the
Seller's
knowledge.
3.13 OUTBOUND LICENSES AND RIGHTS. PART 3.13 OF THE DISCLOSURE
SCHEDULE
lists all agreements, if any, under which the Seller has
licensed or otherwise
granted rights in any of the Purchased Intellectual Property to
any Person. PART
3.13 OF THE DISCLOSURE SCHEDULE also lists separately any of the
following
related to the Fallout Intellectual Property: (i) any exclusive
rights granted
to any third Person; (ii) any source code escrow or other form
of d
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