A SSET PURCHASE AGREEMENT
BETWEEN
COMMUNICATE.COM, INC.
AND
FREQENTTRAVELLER.COM, INC.
Dated as of November 12, 2007
ASSET PURCHASE AGREEMENT
THIS ASSET
PURCHASE AGREEMENT (this “ Agreement ”) is
entered as of November 12, 2007, by and between Communicate.com,
Inc., a Nevada corporation (" Buyer "), and
FrequentTraveller.com, Inc., a Nevada corporation ("
Seller ").
RECITALS
WHEREAS ,
Seller conducts a business that provides travel services and
related products to consumers online and by telephone to
destination encompassed by the geographic domain names owned and
leased by Seller;
WHEREAS,
Seller is the owner of all tangible and intangible assets
associated or used in connection with the operation of the domain
name FrequentTraveller.com and other domain names operated by
Seller and which are the subject matter of this Agreement (the
“Domain Names”);
WHEREAS,
Seller is the lessee of certain domain names owned by the Buyer and
leased to Seller (the “Domain Names”) pursuant to a
Domain Lease Agreement entered into by the parties on May 1, 2005
(the “Domain Lease Agreement”);
WHEREAS ,
the Parties desire to terminate the Domain Lease Agreement upon
Closing of this Agreement; and
WHEREAS ,
the Seller desires to sell and transfer to Buyer, and Buyer desires
to purchase from Seller all of the tangible and intangible assets
associated or used in connection with the operation of
FrequentTravellere.com, Indonesia.com, Malaysia.com, and Brazil.com
and the other Domain Names being transferred and sold hereunder
(the “Business”) upon the terms and subject to the
conditions hereinafter set forth.
NOW,
THEREFORE, in consideration of the foregoing and the
representations, warranties, covenants and agreements herein
contained, the parties hereto agree as follows:
ARTICLE I
DEFINITIONS
Section
1.01. Definitions . In addition to the
other terms defined throughout this Agreement, the following terms,
as used herein, have the following meanings:
" Ancillary
Agreements " means the Bill of Sale and Assumption and
Assignment Agreements.
" Lien "
means, with respect to any asset, any mortgage, lien, pledge,
charge, security interest or encumbrance of any kind in respect of
such asset.
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" Person "
means an individual, corporation, partnership, association, trust
or other entity or organization, including a government or
political subdivision or an agency or instrumentality thereof.
" Proprietary
Rights " means all (A) patents, patent applications, patent
disclosures and all related continuation, continuation-in-part,
divisional, reissue, re-examination, utility, model, certificate of
invention and design patents, patent applications, registrations
and applications for registrations, (B) trademarks, service marks,
trade dress, logos, tradenames, service names and corporate names
and registrations and applications for registration thereof, (C)
copyrights and registrations and applications for registration
thereof, (D) mask works and registrations and applications for
registration thereof, (E) computer software, data and
documentation, (F) trade secrets and confidential business
information, whether patentable or nonpatentable and whether or not
reduced to practice, know-how, manufacturing and product processes
and techniques, research and development information, copyrightable
works, financial, marketing and business data, pricing and cost
information, business and marketing plans and customer and supplier
lists and information, (G) other proprietary rights relating to any
of the foregoing including without limitation associated goodwill
and remedies against infringements thereof and rights of protection
of an interest therein under the laws of all jurisdictions, (H)
copies and tangible embodiments thereof, and (I) all ownership
rights in the content and text, navigational devices, menu
structures or arrangement, icons, operational instructions,
scripts, commands, syntax, source codes, screen design and other
designs and visual expressions related to the operation of the
Business, including without limitation all web pages layout,
graphics, databases, online forms, search engines, banner
advertisement (whether at the site or network), whether stored,
encoded, recorded or written on disk, tape, film, memory device,
paper or other media of any nature.
“
Seller’s Proprietary Rights ” means all
Proprietary Rights relating to the Business that are owned or
licensed by Seller, or that are used in the operation of the
Business or necessary for the operation of the Business.
“
Shares ” means an aggregate of 8,000,000 shares of the
Seller’s common stock owned by Buyer, $0.001 par value per
share.
ARTICLE II
PURCHASE AND SALE
2.01.
Purchase and Sale. Upon the terms and subject to the
conditions of this Agreement, Buyer agrees to purchase from Seller
and Seller agrees to sell, transfer, assign and deliver, or cause
to be sold, transferred, assigned and delivered, to Buyer at
Closing, free and clear of all Liens, all of the assets, properties
and business, other than the Excluded Assets, of every kind and
description, wherever located, personal, tangible or intangible,
owned, held or used in the conduct of the Business by Seller all as
described and set forth on Schedule 2.01 hereto (the "
Purchased Assets ") and including, without limitation, all
right, title and interest of Seller in, to and under such of the
foregoing. Although Schedule 2.01 is intended to be
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complete, in the event such Schedule fails to
contain the description of any asset belonging to Seller which is
used solely for the business and operation of the Business or is
otherwise necessary for the ownership of the Business, such assets
shall nonetheless be deemed transferred to the Buyer at the
Closing.
2.02.
Excluded Assets . Buyer expressly understands
and agrees that the following assets and properties of Seller (the
" Excluded Assets ") shall be excluded from the Purchased
Assets:
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(i) |
all of Seller's cash and cash
equivalents on hand and in banks; |
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(ii) |
all real property and leases of
Seller, and other interests in, real property, in each case
together with all buildings, fixtures, and improvements erected
thereon; and |
2.03.
Assumption of Liabilities . Upon the terms and
subject to the conditions of this Agreement, Buyer agrees,
effective at the time of Closing, to assume only the liabilities of
Seller under such agreements between Seller and third parties
related to the operation of the Business and as more specifically
set forth on Schedule 2.03 hereto (the " Assumed
Liabilities ").
2.04.
Excluded Liabilities . Notwithstanding any
provision in this Agreement or any other writing to the contrary,
Buyer is assuming only the Assumed Liabilities and is not assuming
any other liability or obligation of Seller (or any predecessor
owner of all or part of its business and assets) of whatever nature
whether presently in existence or arising or asserted hereafter.
All such other liabilities and obligations shall be retained by and
remain obligations and liabilities of Seller (all such liabilities
and obligations not being assumed are referred to as the "
Excluded Liabilities "), including without limitation
that Seller expressly agrees that the following liabilities and
claims against Seller shall remain Seller’s liabilities and
Seller further agrees to fully indemnify and hold Buyer harmless
from any and all claims or causes of action related thereto as
further provided in this Agreement:
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(i) |
Services provided to Seller by
Christopher Bohn, including without limitation notice of claim
filed with the Labor Commissioner, State of California by
Christopher Bohn against FrequentTraveller.com, Inc. on June 18,
2007 (State Case Number 23-26375 LMS); and |
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(ii) |
Alleged copyright infringement and
unauthorized use related to certain photographs posted on
Malaysia.com and all claims for royalty payments or otherwise
associated therewith whether claimed by Getty Images (US), Inc. or
any other party. |
2.05.
Assignment of Contracts and Rights . Seller
and Buyer will use their best efforts (but without any payment of
money by Buyer) to obtain the consent of the other parties to any
Purchased Asset or claim or right or any benefit arising thereunder
for the assignment thereof to Buyer as Buyer may request. If such
consent is not obtained, or if an attempted assignment
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would be ineffective or would adversely affect
the rights of Seller thereunder so that Buyer would not in fact
receive all such rights, then Seller and Buyer will negotiate in
good faith an adjustment in the consideration paid by Buyer for the
Purchased Assets.
2.06.
Purchase Price . The purchase price and
consideration for the Purchased Assets (the " Purchase Price
") is (a) the delivery of the Shares endorsed in favor of Seller,
and (b) the cancellation of $261,833.19 of debt owing from Seller
to Buyer under the Domain Lease Agreement, and (c) the assumption
of the Assumed Liabilities. In addition, the Parties agree that the
Domain Lease Agreement shall be deemed terminated and of no further
force or effect upon the Closing of this Agreement and that all
rights, duties and obligations thereunder shall be terminated.
2.07.
Closing . The closing (the " Closing ")
of the purchase and sale of the Purchased Assets and the assumption
of the Assumed Liabilities hereunder shall take place
simultaneously with the execution of the this Agreement and the
Ancillary Agreements at the offices of Richardson & Patel LLP,
11900 Wilshire Boulevard, Suite 500, Los Angeles, California 90024
on or around November 12, 2007 (the “ Closing Date
”). At the Closing:
(a) Buyer shall
deliver to Seller a stock certificate representing the Shares. The
Certificate shall be duly endorsed for transfer in favor of the
Seller.
(b) Seller and
Buyer shall enter into the Ancillary Agreements represented by a
Bill of Sale substantially in the form attached hereto as
Exhibit A and Assignment and Assumption Agreement
substantially in the form attached hereto as Exhibit B , and
Seller shall deliver to Buyer such endorsements, consents,
assignments and other good and sufficient instruments of conveyance
and assignment as the parties and their respective counsel shall
deem reasonably necessary or appropriate to vest in Buyer all
right, title and interest in, to and under the Purchased
Assets.
(c) Seller shall
deliver documentation satisfactory to Buyer and Buyer’s
counsel evidencing the release of all Liens on the Purchased
Assets.
(d) Seller and Buyer
shall also execute and deliver all such instruments, documents and
certificates as may be reasonably requested by the other party that
are necessary, appropriate or desirable for the consummation at the
Closing of the transactions contemplated by this Agreement,
including copies of actions of their respective boards of directors
and/or shareholders and such other writings as each may reasonably
request.
ARTICLE III REPRESENTATIONS AND
WARRANTIES OF SELLER
Seller hereby
represents and warrants to Buyer that:
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3.01.
Corporate Existence and Power . Seller is a
corporation duly incorporated, validly existing and in good
standing under the laws of its jurisdiction of incorporation, and
has all corporate powers and all material governmental licenses,
authorizations, consents and approvals required to carry on its
business as now conducted.
3.02.
Corporate Authorization . The execution,
delivery and performance by Seller of this Agreement and each of
the Ancillary Agreements to which it is a party, and the
consummation by Seller of the transactions contemplated hereby and
thereby are within Seller's corporate powers and have been duly
authorized by all necessary corporate action on the part of Seller.
This Agreement and each of the Ancillary Agreements to which Seller
is a party constitute valid and binding agreements of Seller.
3.03.
Governmental Authorization . The execution,
delivery and performance by Seller of this Agreement and each of
the Ancillary Agreements do not require any action by or in respect
of, or filing with, any governmental body, agency, official or
authority.
3.04.
Non-Contravention . The execution, delivery
and performance by Seller of this Agreement and each of the
Ancillary Agreements do not and will not (i) contravene or conflict
with the corporate charter or bylaws of Seller, (ii) contravene or
conflict with or constitute a violation of any provision of any
law, regulation, judgment, injunction, order or decree binding upon
or applicable to Seller or the Business, (iii) constitute a default
under or give rise to any right of termination, cancellation or
acceleration of any right or obligation of Seller or to a loss of
any benefit relating to the Business to which Seller is entitled
under any provision of any agreement, contract or other instrument
binding upon Seller or by which any of the Purchased Assets is or
may be bound, or (iv) result in the creation or imposition of any
Lien on any Purchased Asset.
3.05.
Required Consents . Schedule 3.05 sets
forth each agreement, contract or other instrument binding upon
Seller or any operating permit requiring a consent as a result of
the execution, delivery and performance of this Agreement and the
Ancillary Agreements or the consummation of the transactions
contemplated hereby and thereby, except such consents as would not,
individually or in the aggregate, have a material adverse effect on
the Purchased Assets if not received by the Buyer (each such
consent, a " Required Consent ”).
3.06.
Properties .
(a) Seller has
good and marketable, indefeasible, fee simple title to, or valid
leasehold interests in, all Purchased Assets (whether real,
personal, tangible or intangible).
(b) No Purchased Asset
is subject to any Lien.
(c) There are no
developments affecting any of the Purchased Assets pending or, to
the knowledge of Seller threatened, which might materially detract
from the value of such Purchased Assets, materially interfere with
any present or intended use of any such Purchased Assets or
materially adversely affect the marketability of such Purchased
Assets.
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3.07.
Title to Purchased Assets . Upon consummation
of the transactions contemplated hereby, Buyer will have acquired
good and marketable title in and to, or a valid leasehold interest
in, each of the Purchased Assets, free and clear of all Liens.
3.08.
Litigation . There is no action, suit,
investigation or proceeding (or any basis therefor) pending
against, or to the knowledge of Seller, threatened against or
affecting, the Business or any Purchased Asset before any court or
arbitrator or any governmental body, agency or official.
3.09.
Proprietary Rights .
(a) Seller has and
will transfer to Buyer at Closing good and marketable title to all
of the Purchased Assets, which are being sold to Buyer under this
Agreement, free and clear of all liens, claims, charges, judgments,
restrictions, security interests, or other encumbrances of any
kind, any no rights or license of any kind respecting the Purchased
Assets have been granted to any third party. Seller is not a party
to any contract or obligation whereby there has been granted to
anyone an absolute or contingent right to purchase, obtain or
acquire any rights in the Purchased Assets.
(b) Seller (i) has
no leases of any personal property relating to the Purchased
Assets, whether as lessor or lessee; (ii) has no contractual or
other obligations relating to the Purchased Assets, whether written
or oral; and (iii) has not given any power of attorney to any
person or organization for any purpose relating to the Purchased
Assets.
(c) There is no
suit, claim, arbitration, investigation, action or proceeding
entered against, now pending or, to the Seller’s knowledge,
threatened against the Seller,
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