EXHIBIT 2.1
ASSET ACQUISITION
AGREEMENT
ASSET PURCHASE
AGREEMENT
THIS ASSET PURCHASE AGREEMENT
(this “ Agreement
”), is entered into as of July 1, 2009, by and between
Blindspot Alert, Inc., a Nevada corporation (“ Buyer
”), and WQN, Inc., a Delaware corporation (“
Seller ”).
WITNESSETH
WHEREAS , Seller is the owner of assets,
intellectual property, products, services, and general intangibles
related to the software program “WebSafety” (the
“ Assets ”).
WHEREAS , Seller desires to sell to Buyer, and Buyer
desires to acquire from the Seller, the Purchased Assets (as
defined below), all subject to the terms and conditions hereinafter
set forth; and
NOW, THEREFORE, in consideration of the mutual covenants
contained herein, and other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the
parties hereto agree as follows:
ARTICLE I
PURCHASE AND SALE OF
ASSETS
1.1
Purchased Assets To Be Transferred
. Subject to the terms and conditions of this Agreement,
at the Closing (as defined below), Seller shall sell, transfer,
convey, assign, and deliver to Buyer, and Buyer shall purchase and
accept, the Purchased Assets, free and clear of any mortgage,
security interest, pledge, lien, charge or other encumbrance (each,
an “ Encumbrance ”). The Seller
expressly agrees that the sale of the Purchased Assets constitutes
a transfer of all of the Seller’s rights with respect to the
Purchased Assets, and that the Seller neither reserves, nor has
granted, nor is aware of, any rights to market or otherwise
transfer the Purchased Assets. The “ Purchased
Assets ” shall mean, and consist of the name WebSafety,
all source and object code versions of the WebSafety software, the
content of the website www.websafety.com, and any code, modules,
libraries, routines, functions, applications, databases,
interfaces, filters, and components included or related to any of
the foregoing, including, without limitation, the software
identified in Schedule 1.1(a) (the “ Software
”), the Uniform Resource Locator on the world wide web for
WebSafety (the “ URL ”), and all of the rights,
claims and assets (of every kind, nature, character and
description, whether real, personal or mixed, whether tangible or
intangible, whether accrued, contingent or otherwise, and wherever
situated) that relate to the Software, including the
following:
(a)
Documentation . All right, title and interest in
or to any end user or design documentation, specification, or
description of the Software, including, without limitation, the
documentation identified in Schedule 1.1(a) hereto (the “
Documentation ”).
(b)
Intellectual Property Rights . All right, title
and interest in or to any of Seller's (a) United States patents,
patent applications, continuations, continuations-in-part,
divisions, reissues, patent disclosures, inventions (whether or not
patentable) and improvements thereto, (b) United States trademarks,
service marks, logos, trade dress and trade names or other
source-identifying designations or devices, (c) United States
copyrights, works of authorship and design rights, whether
registered or unregistered, and pending applications to register
the same, (d) Internet domain names and registrations thereof, and
(e) confidential ideas, trade secrets, computer software, including
source code, know-how, works-in-progress, concepts, methods,
processes, inventions, invention disclosures, formulae, reports,
data, customer lists, mailing lists, business plans or other
proprietary information relating to the Software or the Assets (the
“ Intellectual Property Rights ”).
(c)
Records And Files . All records, files, invoices,
copies of accounting records, copies of business records, and other
data related to the Assets, Software, or the Contracts.
1.2
Liabilities Not Assumed . Except as set
forth on Schedule 1.3, Buyer is not assuming, and will not assume
or perform any liabilities or obligations of Seller.
ARTICLE II
PURCHASE PRICE AND INVENTORY
COUNT
2.1
Purchase Price . At the Closing (as
defined below), Buyer shall (a) pay to the Seller an amount equal
to __________ shares of Buyer’s unregistered and restricted
common stock, par value $0.001 USD per share (the “ Common
Stock ”) (such amount as it may be increased
or decreased pursuant to the terms hereof, being, the “
Purchase Price ”).
ARTICLE III
CLOSING
3.1
Closing Date . The closing (“
Closing ”) of the transactions contemplated hereby
shall occur on June __, 2009 (the “ Closing Date
”).
3.2
Deliveries by Seller . At the Closing,
Seller shall deliver the following to Buyer:
A. This
fully executed Asset Purchase Agreement;
B. A
fully executed Bill of Sale in the form of Exhibit A
;
C. Fully
executed third party consents and/or approvals, as may be
necessary; and
D. Title
to and possession of the Purchased Assets.
3.3
Deliveries by Buyer . At the Closing,
Buyer shall deliver the following to Seller:
A. The
Purchase Price, constituting a certificate representing the shares
of common stock in the Buyer described in Section 2.1;
and
B. Such
other agreements, documents, certificates and instruments as Buyer
may reasonably request as being necessary in order to effectuate
the transactions contemplated by this Agreement.
ARTICLE IV
CONDITIONS TO
CLOSING
The obligations
of the parties to effect the transactions contemplated hereby are
subject to the satisfaction at or prior to the Closing of the
following conditions:
4.1
Board Approval . Buyer shall
have obtained all board of director approval necessary to
consummate the transactions contemplated by this
Agreement.
ARTICLE V
REPRESENTATIONS AND WARRANTIES OF
SELLER
5.1
Representations and Warranties of Seller
. As of the Closing Date, Seller represents and warrants
to Buyer as follows: (a) Seller is duly organized,
validly existing and (if applicable) in good standing under the
laws of its jurisdiction of organization and Seller has all
requisite corporate power and authority to own and operate the
Purchased Assets, to carry on its business as now conducted and to
enter into this Agreement and any other agreement to which it is a
party; (b) this Agreement is, and the other agreements when
executed and delivered will be, the legal, valid and binding
obligations of Seller, each enforceable against Seller in
accordance with their respective terms, except to the extent that
the enforceability thereof may be limited by applicable bankruptcy,
insolvency, reorganization, moratorium or other similar laws
generally affecting creditors’ rights and by equitable
principles; (c) Seller has taken all action and obtained all
consents necessary to authorize the execution, delivery and
performance of this Agreement; (d) Seller has good and marketable
title to the Purchased Assets, free and clear of all liens, claims,
and encumbrances of any kind; (e) the execution and performance of
this Agreement and the other agreements to which it is a party do
not conflict with, or constitute a default under, any agreement to
which Seller is party or by which Seller is bound; (f) except as
disclosed to Buyer in writing, Seller is not party to any
litigation related to the Purchased Assets and is not, to its
knowledge, the subject of any government investigation, and Seller
has no knowledge of any pending litigation or investigation or the
existence of circumstances that reasonably could be expected to
give rise to such litigation or investigation related to the
Purchased Assets; (g) Seller does not have any obligation or
liability (whether accrued, absolute, contingent, unliquidated or
otherwise, whether due or to become due and regardless of when
asserted) required to be disclosed in a balance sheet prepared in
accordance with GAAP (including the notes thereto) arising out of
transactions entered into at or prior to the Closing Date, or any
action or inaction at or prior to the Closing Date, or any state of
facts existing at or prior to the Closing Date in any way related
to the Purchased Assets other than: (A) liabilities set
forth on the latest financial statements (including any notes
thereto) provided to the Buyer (the “ Financial
Statements ”) and (B) liabilities and obligations which
have arisen after the date of the Financial Statements in the
ordinary course of business (none of which is a liability resulting
from breach of contract, breach of warranty, tort, infringement,
claim or lawsuit, unless such liability is either fully covered by
insurance (subject to normal deductibles or retentions) or is not,
individually or in the aggregate with all such other liabilities,
material); (h) all of the Purchased Assets are in good operating
condition; and (i) no representation or other statement made by
Seller to Buyer in this Agreement or any certificate or instrument
delivered by Seller to Buyer in connection herewith (taken together
with all such representations, statements, certificates and
instruments delivered by Seller) contains any untrue statement of a
material fact or omits to state a material fact necessary to make
any statements made to Buyer not misleading.
5.2
Intellectual Property Rights .
(a) No
Intellectual Property Rights of any third party are necessary to
conduct the sale of the Purchased Assets. All of the
Seller’s Intellectual Property Rights are subsisting, valid,
and enforceable.
(b) Neither
the Seller, nor the use or the intended use of the Purchased
Assets, infringes, misappropriates or otherwise violates the
Intellectual Property Rights of any third party and, to the
knowledge of Seller, no Person has asserted any claim of the
foregoing or challenging the ownership, validity, or enforceability
of any Intellectual Property Rights owned, licensed, or used by the
Seller. Immediately subsequent to the Closing, any
Intellectual Property Rights owned or used by the Seller
immediately prior to the execution hereof will be owned by or
available for use by such Seller on terms and conditions identical
to those under which such Seller owned or used the Intellectual
Property Rights immediately prior to the execution
hereof. The Closing hereof shall not terminate or alter
(or give rise to any right to terminate or alter) any Contract
granting rights to any Intellectual Property Rights or give rise to
or allow any third party to exercise any additional right or impose
any additional restriction on Seller under any Contract granting
rights to any Intellectual Property Rights.
(c) Seller
does not license, use, or distribute any open source software, free
source software, freeware, or any other software copied,
downloaded, licensed, or otherwise obtained pursuant to terms,
notices, or other commitments or understandings that would: (i)
prevent Seller from obtaining a patent on any Proprietary Software;
or (ii) require Seller to disclose, license, distribute or
otherwise make available any Proprietary Software, without material
consideration, or the source code of any Proprietary Software,
whether with or without consideration, to any third
party. " Proprietary Software " shall mean
software developed by or for Seller or for which a Seller owns or
holds an exclusive license to the copyright or any patentable
invention embodied by such software, in each case whether or not
such copyright or patentable invention is registered or
perfected.
(d) Seller
owns and possesses the entire and exclusive right, title and
interest in and to any Intellectual Property Rights free and clear
of any encumbrance or restriction.
ARTICLE VI
REPRESENTATIONS AND WARRANTIES OF
BUYER
6.1
Representations and Warranties of Buyer
. Buyer represents and warrants to Seller as
follows:
A.
Organization . Buyer is a corporation duly
organized, validly existing and in good standing under the laws of
the State of Nevada, and has all requisite corporate power and
authority to carry on its business as presently conducted, to own
and operate the properties owned by it and to enter into this
Agreement and perform its obligations hereunder.
B.
Authority Relative to Agreement . The
execution, delivery and performance by Buyer of this Agreement have
been duly and effectively authorized by all necessary corporate
action. This Agreement has been duly executed and
delivered by Buyer and is a legal, valid and binding obligation of
Buyer enforceable against it in accordance with its
terms.
C.
Brokers, Finders, Etc . All
negotiations relating to this Agreement and the transactions
contemplated hereby and thereby have been carried on without the
intervention of any person acting on behalf of Buyer in such manner
as to give rise to any valid claim against Seller for any brokerage
of finder’s commission, fee or similar
compensation.
ARTICLE VII
COVENANTS OF
SELLER
7.1
Use of Names . Seller covenants that as of
the Closing Date, Seller shall abandon and cease use of the name
“WebSafety.” Additionally, Seller covenants
to perform such actions and execute such documents as shall be
required or requested to immediately transfer the URL to Buyer
after Closing.
7.2
Confidentiality, Non-Compete and N
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