Exhibit 2.1
ASSET PURCHASE
AGREEMENT
by and between
NETARX LLC,
a Michigan limited liability
company
AS BUYER
and
ANALYSTS INTERNATIONAL
CORPORATION
a Minnesota corporation
AS SELLER
August 4,
2009
TABLE OF CONTENTS
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Page
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ASSET PURCHASE AGREEMENT
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1
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RECITALS
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1
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1.
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Certain Definitions
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1
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2.
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Sale and Transfer of Assets
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4
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3.
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Sublease of Premises
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6
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4.
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Excluded Assets
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6
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5.
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Consideration
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7
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6.
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Assumed Liabilities
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7
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7.
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Allocations
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7
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8.
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Deliverables
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8
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9.
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Limited Scope
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8
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10.
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Representations and Warranties of
Seller
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8
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11.
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Representations and Warranties of
Buyer
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11
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12.
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Additional Provisions – Customer
Contracts
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11
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13.
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Additional Provisions – Employment
Matters
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12
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14.
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Additional Provisions – Tangible Personal
Property
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13
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15.
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Additional Covenants and Agreements of
Seller
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13
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16.
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Non-Competition and Non-Solicitation
Covenants
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13
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17.
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Non-Disparagement
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14
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18.
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Modification of Certain Covenants
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14
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19.
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Customer and Other Business
Relationships
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14
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20.
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Further Assurances
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15
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21.
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Indemnification and Reimbursement by
Seller
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15
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22.
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Indemnification and Reimbursement by
Buyer
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16
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23.
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Limitations on Liability
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16
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24.
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Remedies
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16
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25.
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Confidentiality
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17
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26.
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Public Announcements
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20
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27.
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Fees and Expenses
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20
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28.
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Miscellaneous
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20
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Exhibit A – Customer Contracts
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24
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Exhibit B – Tangible Personal
Property
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233
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Exhibit B1 – Intellectual
Property
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288
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Exhibit B2 – Deferred Revenues
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289
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Exhibit B3 – Inventories
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290
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Exhibit B4 – Software, Etc.
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312
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Exhibit C – Form of Sublease
Agreement
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313
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Exhibit D – Permitted
Encumbrances
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323
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Exhibit E – Purchase Price
Allocation
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324
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Exhibit F – Bill of Sale
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325
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Exhibit G – Waiver of
Non-Compete
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327
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Exhibit H – Employees to be Hired by
Buyer
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328
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Exhibit I – Form of Consent
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335
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Exhibit J – Licenses, Permits and
Authorizations
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337
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Exhibit K – Form of Promissory
Note
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338
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Exhibit B5 – Customer
Credits
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341
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ASSET PURCHASE AGREEMENT
This Asset Purchase Agreement, dated
August 4, 2009, is made by and between Netarx LLC, a Michigan
limited liability company (“Buyer”), and Analysts
International Corporation, a Minnesota corporation
(“Seller”).
RECITALS
Seller desires to sell, and Buyer
desires to purchase, certain assets of Seller for the consideration
and on the terms set forth in this Agreement.
The Parties, intending to be legally
bound, agree as follows:
1.
Certain
Definitions.
1.1.
For purposes of this Agreement, the
following terms and variations thereof have the meanings specified
or referred to in this Section 1:
1.2.
“Acquired Assets”
— as defined in Section 2.
1.3.
“Action” — as
defined in Section 10.8.
1.4.
“Affiliate” — any
Person that directly or indirectly controls, is controlled by, or
is under common control with Buyer, where “control”
means (i) the power to direct (or cause the direction of) the
management and policies of a Person, whether through ownership of
voting securities, through contract or otherwise, or
(ii) ownership of at least twenty percent (20%) of the voting
stock, shares or interests of such Person. A Person that
otherwise qualifies under this definition will be included within
the meaning of “Affiliate” even though acquired after
the execution of this Agreement.
1.5.
“Agreement” — this
Asset Purchase Agreement, dated August 4, 2009, made by and
between Buyer and Seller, including all Exhibits attached
hereto.
1.6.
“Assumed Liabilities”
— as defined in Section 6.
1.7.
“Best Efforts”
— the efforts that a prudent Person desirous of
achieving a result would use in similar circumstances to achieve
that result as expeditiously as possible, provided, however
, that a Person required to use Best Efforts under this Agreement
will not be thereby required to take actions that would result in a
material adverse change in the benefits to such Person of this
Agreement and the Contemplated Transactions or to dispose of or
make any change to its business, expend any material funds or incur
any other material burden except as required by this
Agreement.
1.8.
“Breach” — any
breach of, or any inaccuracy in, any representation or warranty or
any breach of, or failure to perform or comply with, any covenant
or obligation, in or of this Agreement, or any event which with the
passing of time or the giving of notice, or both, would constitute
such a breach, inaccuracy or failure.
Asset Purchase Agreement between Netarx LLC and
Analysts International Corporation
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1.9.
“Contemplated
Transactions” — all of the transactions contemplated by
this Agreement.
1.10.
“Cost Basis” — as
defined in Section 2.3.
1.11.
“Customer Consents”
— as defined in Section 2.1.4.
1.12.
“Customer Contracts”
— the customer agreements identified on Exhibit A,
attached hereto and made a part hereof.
1.13.
“Customer Credits”
— amounts received by Seller prior to the Effective Date from
customers of its VAR Business in excess of the balances owed to
Seller by such customers.
1.14.
“Deferred Revenues”
— prepayments actually received by the Seller prior to
July 4, 2009 for services to be rendered by Buyer after the
Effective Date in respect of certain Customer Contracts, which
equal $820,774.88, as the same are substantiated on
Exhibit B2.
1.15.
“Effective Date” —
the date on which this Agreement is executed.
1.16.
“Encumbrance” —
lien, option, pledge, security interest, encumbrance, charge,
agreement, restriction and claim of any kind whatsoever, whether
legal or equitable, including, but not limited to, rights of first
refusal or other similar restrictions on use, voting, transfer,
receipt of income or exercise of any other attribute of
ownership.
1.17.
“Excluded Assets”
— as defined in Section 4.1.
1.18.
“GAAP” — Generally
Accepted Accounting Principles set forth in the opinions and
pronouncements of the Accounting Principles Board of the American
Institute of Certified Public Accountants and statements and
pronouncements of the Financial Accounting Standards Board or in
such other statements by such other entity as may be approved by a
significant segment of the accounting profession, which are
applicable to the circumstances as of any date of
determination.
1.19.
“Liability” — with
respect to any Person, any liability or obligation of such Person
of any kind, character or description, whether known or unknown,
absolute or contingent, accrued or unaccrued, disputed or
undisputed, liquidated or unliquidated, secured or unsecured, joint
or several, due or to become due, vested or unvested, executory,
determined, determinable or otherwise, and whether or not the same
is required to be accrued on the financial statements of such
Person.
1.20.
“Material Adverse
Effect” — means, with respect to any Person, any event,
change in or effect that is or would: (i) be materially
adverse to the business, financial condition or results of
operations of such Person and its Subsidiaries or the VAR Business,
or (ii) prevent the ability of such Person to consummate the
Contemplated Transactions or to perform its obligations hereunder;
in each case, other than any such event, change or effect to the
extent resulting from (1) any change,
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development, circumstance, event or
occurrence generally affecting the industries in which the Seller
operates, provided the Seller is not disproportionately affected by
such change, development, circumstance, event or occurrence,
(2) any change in the economy or the financial or securities
markets in general, provided the Seller is not disproportionately
affected by such change, or political conditions in the United
States or any acts of terrorism, military actions or war,
(3) this Agreement or the transactions contemplated hereby,
including the announcement or pendency thereof, (4) any fees
expenses incurred in connection with the transactions contemplated
by this Agreement, or (5) any change in any law or GAAP or the
interpretation thereof.
1.21.
“Material Breach”
— any Breach that is important, substantial or
significant.
1.22.
“Note” — as
defined in Section 5.2.2.
1.23.
“Ordinary Course of
Business” — an action taken by a Person will be deemed
to have been taken in the Ordinary Course of Business only if that
action;
1.23.1.
Is consistent in nature, scope and
magnitude with the past practices of such Person and is taken in
the ordinary course of the normal, day-to-day operations of such
Person;
1.23.2.
Does not require authorization by
the board of directors, shareholders or partners of such Person (or
by any Person or group of Persons exercising similar authority) and
does not require any other separate or special authorization of any
nature; and
1.23.3.
Is similar in nature, scope and
magnitude to actions customarily taken, without any separate or
special authorization, in the ordinary course of the normal,
day-to-day operations of other Persons that are in the same line of
business as such Person.
1.24.
“Party” and
“Parties” — Seller and Buyer are sometimes
individually referred to herein as a Party or collectively referred
to herein as the Parties.
1.25.
“Permitted Encumbrances”
— the Encumbrances identified on Exhibit E, if
any.
1.26.
“Person” — an
individual, partnership, limited partnership, corporation, business
trust, limited liability company, limited liability partnership,
joint stock company, trust, unincorporated association, joint
venture or other entity.
1.27.
“Purchase Price” —
as defined in Section 5.1.
1.28.
“Record” —
information that is inscribed on a tangible medium or that is
stored in an electronic or other medium and is retrievable in
perceivable form.
1.29.
“Recruited Employee”
— as defined in Section 13.1.
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1.30.
“Representative” —
with respect to a particular Person, any director, officer,
manager, employee, agent, consultant, advisor, accountant,
financial advisor, legal counsel or other representative of that
Person.
1.31.
“Subleases” — as
defined in Section 3.
1.32.
“Tangible Personal
Property” — as defined in
Section 2.1.5.
1.33.
“Third Party” — a
Person that is not a Party to this Agreement.
1.34.
“Transitional Services
Agreement” — as defined in
Section 15.1.
1.35.
“VAR Business” —
the business currently operated by Seller of providing the types of
services generally required of Seller in connection with the
Customer Contracts through use of the Acquired Assets delineated in
Section 2.1 below.
2.
Sale and Transfer of
Assets.
2.1.
Upon the terms and subject to the
conditions set forth in this Agreement, Seller shall sell, convey,
assign, transfer and deliver to Buyer, and Buyer shall purchase and
acquire from Seller, free and clear of any Encumbrances other than
Permitted Encumbrances, all of Seller’s worldwide right,
title and interest in and to the following assets wherever they
exist throughout the world (the “Acquired Assets”) (but
excluding the Excluded Assets):
2.1.1.
The VAR Business conducted by Seller
as a going concern through use of the enumerated assets to be
conveyed pursuant to this Agreement. The VAR Business
includes any and all goodwill associated with said business and the
assets owned, licensed (to the extent transferable) or used by
Seller in connection with the operation of said business, as the
same are identified in the Exhibits to this Agreement.
2.1.2.
To the extent transferable, all
third party warranties directly associated with the VAR Business or
the Acquired Assets.
2.1.3.
To the extent permitted under
applicable law or regulations, all licenses, permits and
authorizations held by Seller relating to the VAR Business or the
Acquired Assets, including but not limited to the licenses, permits
and authorizations set forth on Exhibit J.
2.1.4.
The Customer Contracts identified on
Exhibit A hereto (subject to the receipt of any required
consents to the assignment to Buyer (or its Affiliate, if
applicable) of any such Customer Contracts; hereinafter, the
“Customer Consents”). Seller represents that the
Customer Contracts listed on Exhibit A represent
Seller’s best estimate of all of Seller’s contracts
related to the VAR Business and Seller agrees that not later than
sixty (60) days after execution of this Agreement, Seller will
endeavor in good faith, working cooperatively with Buyer, to add
any of Seller’s customer contracts related to the VAR
Business that
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were omitted in the preparation of
Exhibit A to the list of contracts of the VAR Business to be
included in the definition of Customer Contracts and the Acquired
Assets conveyed to Buyer pursuant to this Agreement. For the
avoidance of doubt, Seller’s project # 145097 for the Novi
Schools is not one of the contracts to be assigned to Buyer; Seller
will perform that project and collect all revenues derived
therefrom.
2.1.5.
Subject to and on the terms set
forth in Section 14 hereof, all right, title and interest in
the furniture, fixtures, equipment, supplies and other fixed assets
used in connection with the VAR Business operated out of
Seller’s locations, as listed on Exhibit B attached
hereto (the “Tangible Personal Property”). Seller
represents that the Tangible Personal Property listed on
Exhibit B represents Seller’s best estimate of such
assets used in the VAR Business and Seller agrees that not later
than sixty (60) days after execution of this Agreement Seller will
endeavor in good faith, working cooperatively with Buyer, to update
Exhibit B to add any furniture, fixtures, equipment, supplies
or other fixed assets omitted in the preparation of Exhibit B
to the list of Tangible Personal Property to be included in the
Acquired Assets conveyed to Buyer pursuant to this
Agreement.
2.1.6.
To the extent legally permissible
under applicable laws or regulations (as such laws or regulations
may be updated from time to time within a reasonable period of time
after the Effective Date): the contents of VAR Business databases,
lists of VAR Business customers and vendors, VAR Business sales and
business records and advertising and promotional materials, VAR
Business inventory, operating and production records and copies of
the personnel records of VAR Business employees (including any
updates that may occur after the Effective Date), the credit
records of customers and vendors of the VAR Business, accounting,
banking and financial records of the VAR Business (including any
financial statements of the VAR Business), and similar assets,
including, but not limited to, those provided to Buyer during its
due diligence investigation of the VAR Business prior to the
Effective Date.
2.1.7.
The intellectual property and other
intangible rights identified on Exhibit B1 attached
hereto. Seller represents that the intellectual property
listed on Exhibit B1 represents Seller’s best estimate
of such assets used in the VAR Business and Seller agrees that not
later than sixty (60) days after execution of this Agreement,
Seller will endeavor in good faith, working cooperatively with
Buyer, to update Exhibit B1 to add any intellectual property
or other intangible rights omitted in the preparation of
Exhibit B1 to the list of intellectual property and other
intangible rights to be included in the Acquired Assets conveyed to
Buyer pursuant to this Agreement.
2.1.8.
All salable and usable inventories
relating to the VAR Business set forth in
Exhibit B3.
2.1.9.
Software, computer programs, source
and object codes used in or
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relating to the VAR Business or the
Acquired Assets identified on Exhibit B4. Seller
represents that the software, etc. listed on Exhibit B4
represents Seller’s best estimate of such assets used in the
VAR Business and Seller agrees that not later than sixty (60) days
after execution of this Agreement, Seller will endeavor in good
faith, working cooperatively with Buyer, to update Exhibit B4
to add any software, computer programs, source codes or object
codes omitted in the preparation of Exhibit B4 to the list of
intellectual property and other intangible rights to be included in
the Acquired Assets conveyed to Buyer pursuant to this Agreement
(to the fullest extent permitted under any applicable license
agreement but subject to the limitations set forth in
Exhibit B4).
2.1.10.
To the extent permissible under
applicable law and pursuant to the terms of any such agreements,
all rights to enforce any confidentiality agreements relating to
the VAR Business.
2.2.
Title and risk of loss with respect
to the Acquired Assets and the Assumed Liabilities shall transfer
to Buyer upon the Effective Date.
2.3.
The Parties agree that the cost
basis for work to be performed by Buyer after the Effective Date
for which Seller has previously received Deferred Revenues is
$568,290 (the “Cost Basis”). Buyer agrees to
absorb the Cost Basis for work involving such Deferred Revenues as
part of its on-going operations of the Business, but Buyer will be
entitled to reimbursement from Seller for costs incurred by Buyer
in completing such work that are in excess of the Cost Basis (but
not to exceed the aggregate amount of the Deferred Revenues).
For purposes of this Agreement the effective date of determining
such Deferred Revenues will be the close of business on
July 4, 2009; provided, however, that to the extent of any
increase in Deferred Revenues between such date and the Effective
Date, the parties shall negotiate in good faith to determine a
cost-basis for work to be performed by Buyer after the Effective
Date with respect to such incremental Deferred Revenues, and the
Buyer shall be entitled to reimbursement from Seller for costs
incurred by Buyer in completing such work within thirty (30) days
of Buyer invoicing Seller for such costs.
3.
Sublease of
Premises.
Promptly after execution hereof, the
Seller and Buyer shall work together to cause subleases in
substantially the form of Exhibit C attached hereto and made a
part hereof (the “Subleases”) to be executed. In
the alternative, Buyer will enter into new lease agreements for the
relevant premises directly with their respective
landlords.
4.
Excluded Assets.
Notwithstanding anything to the
contrary contained in Section 2 or elsewhere in this
Agreement, no assets of Seller of any kind are part of the sale and
purchase contemplated hereunder unless identified in Section 2
hereof. All such assets are excluded from the Acquired Assets
and shall remain the exclusive property of Seller after the
Effective Date (the “Excluded Assets”). For
purposes of clarity, the term Excluded Assets also includes
(a) any and all written
6
or oral contracts or agreements (other than the
Customer Contracts); (b) any and all employment benefit or profit
sharing plans; (c) Seller’s working capital; and (d) the
accounts receivable and associated collections and payments for
work-in-process prior to the Effective Date with respect to any
aspect of the VAR Business.
5.
Consideration.
5.1.
The consideration for the Acquired Assets (the “Purchase
Price”) will be Three Million Seven Hundred Fifty Thousand
Dollars ($3,750,000.00) plus the Assumed Liabilities, as
hereinafter set forth. The portion of the Purchase Price
payable by way of the Note is subject to certain vesting conditions
as set forth in Exhibit N hereto.
5.2.
Contemporaneously with its execution of this Agreement, Buyer will
deliver to Seller:
5.2.1. The
sum of Three Million Dollars ($3,000,000.00) by wire transfer of
immediately available funds to accounts specified by Seller
(subject to offset in the amount of $245,505.98, the agreed-upon
balance of the Customer Credits as delineated in Exhibit B5);
and
5.2.2. A
non-negotiable promissory note in the face value of up to Seven
Hundred Fifty Thousand Dollars ($750,000.00), in the form set forth
in Exhibit K attached hereto and made a part hereof (the
“Note”).
6.
Assumed
Liabilities.
Buyer shall not assume and shall not
be liable for any debts, liabilities or obligations of Seller,
regardless of the type or nature of such debts, liabilities and
obligations, other than the following (the “Assumed
Liabilities”):
6.1.
All Liabilities under the Customer Contracts of any kind arising
from and after the Effective Date, only to the extent any such
Liability is based on services or products provided by Buyer under
the Customer Contracts subsequent to the Effective Date (including
the agreed upon cost-basis for work related to any Deferred Revenue
as contemplated by Section 2.4); and specifically excluding
warranty obligations based on services provided by Seller under the
Customer Contracts prior to the Effective Date.
6.2.
The Permitted Encumbrances listed on Exhibit D.
7.
Allocations.
Within thirty (30) days after the
Effective Date, the Parties shall work together, cooperatively and
in good faith, to prepare a Purchase Price allocation which, when
completed and signed by both Parties, shall become Exhibit E to
this Agreement. After completion of said Exhibit E, the
Parties shall make consistent use of the allocation, fair market
value and useful lives specified in Exhibit E for all tax purposes
and in all filings, declarations and reports with the IRS in
respect thereof, including the reports required to be filed under
Section 1060 of the Internal Revenue Code. Buyer shall
prepare and deliver IRS Form 8594 in draft form to
Seller
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within forty-five (45) days prior to the filing
due date for such form, and shall thereafter promptly file such
form with the IRS unless Seller has a reasonable objection to its
contents. In any action or proceeding related to the
determination of any tax assessed based on, related to arising out
of such allocation, neither Party shall contend or represent that
such allocation is not a correct allocation.
8.
Deliverables.
8.1.
Buyer acknowledges receipt of the following from Seller:
8.1.1. A
bill of sale for the Tangible Personal Property in the form of
Exhibit F executed by Seller;
8.1.2. A
certificate executed by Seller as to the accuracy of its
representations and warranties as of the date of this Agreement and
as to its compliance with and performance of its covenants and
obligations to be performed or complied with at or before the
Effective Date;
8.1.3.
Certified resolutions of the Seller approving the execution and
delivery of this Agreement and the consummation of the Contemplated
Transactions;
8.1.4. For
each former employee of Seller to be employed by Buyer, the waivers
required by Section 13.2 in the form of Exhibit G.
8.2.
Seller acknowledges receipt of the following from Buyer:
8.2.1. The
Purchase Price; and
8.2.2. A
certificate executed by Buyer as to the accuracy of its
representations and warranties as of the date of this Agreement and
as to its compliance with and performance of its covenants and
obligations to be performed or complied with at or before the
Effective Date.
9.
Limited Scope.
Except as otherwise expressly set
forth in this Agreement, the Contemplated Transactions shall be
without any express, implied, statutory or other warranty or
representation as to the condition, quantity, quality, fitness for
particular purpose, conformity to models or samples of materials or
merchantability of any of the assets conveyed hereunder, their
fitness for any purpose, and without any other express, implied,
statutory or other warranty or representation
whatsoever.
10.
Representations and Warranties of
Seller.
Except as set forth in one of the
exhibits to this Agreement, Seller represents and warrants to Buyer
as follows:
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10.1.
Seller is a corporation duly organized, validly existing and in
good standing under the laws of the State of Minnesota and is duly
qualified to conduct business in each jurisdiction in which the
ownership of the Acquired Assets requires such qualification or
where the failure to be so qualified would not have a Material
Adverse Effect on Seller’s ownership or ability to transfer
the Acquired Assets.
10.2.
Seller has the full corporate power and authority to enter into and
perform its respective obligations under this Agreement without the
consent or approval of any other person, entity or governmental
agency.
10.3.
The execution, delivery and performance of this Agreement and each
of the other ancillary transaction documents and the consummation
of the Contemplated Transactions have been duly authorized by all
necessary corporate action of Seller. This Agreement and the
other transaction documents have been duly executed and delivered
by Seller, and are the valid and binding obligations of Seller in
accordance with their respective terms, subject as to
enforceability by applicable bankruptcy, reorganization,
insolvency, moratorium, fraudulent conveyance or transfer and other
similar laws or equitable principles now or hereafter in effect
relating to or affecting the rights of creditors
generally.
10.4.
No Conflict . The execution, delivery and performance
of this Agreement and the consummation of the transactions
contemplated hereby will not (a) conflict with, result in a
material breach of any provision of, constitute a material default
under, result in the material modification or cancellation of, or
give rise to any right of termination or acceleration in respect
of, any contract, agreement, commitment, understanding, arrangement
or restriction of any kind to which Seller is a party or to which
Seller or any of its interest in any of the Acquired Assets are
subject; (b) result in the creation of any Encumbrances upon, or
any person obtaining the right to acquire, any of the Acquired
Assets; (c) violate or conflict with any law, ordinance, code,
rule, regulation, decree, order or ruling of any court, arbitral
body or governmental authority, to which Seller or any of its
interest in any of the Acquired Assets are subject; or (d) require
any authorization, consent, order, permit or approval of, or notice
to, or filing, registration or qualification with, any
governmental, administrative or judicial authority or any other
person or entity, other than as herein set forth with respect to
Customer Contracts for which consents will be sought after the
Effective Date.
10.5.
Compliance with Law . As relates to the VAR Business,
Seller is in material compliance, and has materially complied, with
all applicable laws and has not received any notice of any
violation of any such laws. To Seller’s knowledge,
Seller has not been subject to any investigations or reviews with
respect to the VAR Business and, to Seller’s knowledge, no
basis exists for any such review or investigation. Seller has
all material licenses, permits, approvals and other authorizations,
and have made all necessary filings and registrations, which are
necessary in order to conduct its VAR Business. All such
licenses permits, approvals and other authorizations are in full
force and effect and no violations are outstanding or, to
Seller’s knowledge, have been incurred with respect to such
licenses, permits, approvals and other authorizations.
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10.6.
Taxes. Seller has paid all taxes, and filed all tax
returns required to be filed by it in relation to the VAR Business
including, but not limited to personal property tax, sales tax,
federal and state income tax and withholding and employment
tax. There is no claim or assessment pending or, to
Seller’s knowledge, threatened against Seller for any alleged
deficiency in taxes and Seller has not received any notice of any
audit or investigation with respect to any liability of Seller for
taxes.
10.7.
Title. Seller owns the Acquired Assets free and clear
of all Encumbrances and Seller is exclusively entitled to possess
and dispose of any interest in the Acquired Assets to
Buyer.
10.8.
Litigation. There is no Action (defined below)
pending, or, to Seller’s knowledge, threatened against Seller
involving the VAR Business or that otherwise may have the
effect of preventing, delaying, making illegal or otherwise or
interfering Seller’s performance of its obligations under
this Agreement and, to the knowledge of Seller, no basis exists for
any such Action. There are no existing or, to Seller’s
knowledge, threatened orders, judgments or decrees of any court or
other authority applicable to the VAR Business. For the
purposes of this Agreement, “Action” means any audit,
action, suit, arbitration, inquiry, hearing, proceeding or
investigation by or before any court of competent jurisdiction,
governmental or other regulatory or administrative agency or
commission or arbitral panel.
10.9.
Intangibles and Intellectual Property. Seller has the
complete and unrestricted right to use and own and has the
exclusive right to convey or assign all of its owned Intangibles
and Intellectual Property. To the knowledge of Seller, there
has been no infringement, misappropriation or misuse of any of
Seller’s Intangibles and Intellectual Property or any other
proprietary information related to the VAR Business. Seller
has not infringed on, misappropriated or misused any third
party’s intellectual property or trade secrets.
10.10.
Customer Contracts. Seller has complied in all
material respects with the provisions of each of the Customer
Contracts and Seller is not in default under any such Customer
Contracts, and, to the knowledge of Seller, no other party to any
of the Customer Contracts has failed to comply in any material
respect with, or is in default under, the provisions of such
Customer Contract. Subject to the requirement to obtain
Customer Consents,