Exhibit
10.1
LIMITED ASSET PURCHASE
AGREEMENT
BETWEEN VEMICS, INC. AND
CLEARLOBBY, INC.
AGREEMENT made and entered into as of 11th day
of September 2008, by and between ClearLobby, Inc., a Delaware
corporation, with its principal place of business at 60 Silver
Lane, Holliston, MA 01746, (''Seller'') and Vemics, Inc., a Nevada
corporation, with its principal place of business at 523 Avalon
Gardens, Nanuet, NY 10954, (''Buyer'').
W I T N E S S E T H
Whereas Seller desires to sell certain of its
assets, including certain trademarks, computer software and
know-how related thereto, in accordance with the terms and
conditions of this Agreement; and
Whereas Buyer desires to purchase such assets in
accordance with the terms and provisions hereof.
Now, therefore, in consideration of the premises
and of the mutual promises herein contained, the parties agree as
follows;
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Sale and Purchase of Assets
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1.1 Transfer of assets.
Subject to the terms and provisions hereof, Buyer, in reliance upon
Seller's warranties and representations herein made, shall purchase
and acquire from Seller, and Seller shall sell, transfer and convey
to Buyer, with the exceptions set forth herein and in the schedules
annexed hereto, all of the assets, properties and rights of Seller,
of every type and description, whether tangible or intangible,
including but not limited to the following:
(a) All designs, drawings, procedures (including
design, manufacturing, test and maintenance procedures),
specifications, software (other than as described in Subparagraph
(b) hereof), printed circuit board art work, integrated circuit
masks, test equipment, tools, fixtures, documentation, training
materials, and information, in whatever form, related to, useful,
utilizable or necessary in the design, manufacture, test and/or
maintenance of the website known as the Clearlobby
Website; the foregoing being more specifically defined and
described in the Schedule of Computer Technology, Schedule A,
attached hereto and made a part hereof (hereinafter collectively
referred to as ''Computer Technology'').
(b) All
software (including object and source code, in machine readable and
listing form), documentation (including internal documentation,
documentation made available to customers and training materials),
flowcharts, source code notes, software tools, compilers, test
routines and information, in whatever form, and all revisions,
release levels and versions of the foregoing, used on or with the
Computer Technology, offered for sale or license by Seller,
developed by or for Seller, or in the possession of Seller; the
foregoing being more specifically defined and described in the
Schedule of Software, Schedule B, attached hereto and made a part
hereof (hereinafter collectively referred to as
''Software'').
(c) All
patents, patent applications, copyrights, trade secrets,
trademarks, trade names, and other proprietary rights based, in
whole or in part, or included in or covering the Computer
Technology, Software or any portion thereof; the foregoing being
more specifically defined and described in the Schedule of
Proprietary Rights, Schedule C, attached hereto and made a part
hereof (hereinafter collectively referred to as ''Proprietary
Rights'').
(d) All
inventories of Computer Technology, Software, or any portions
thereof; the foregoing being more specifically defined and
described in the Schedule of Inventories, Schedule D, attached
hereto and made a part hereof (hereinafter collectively referred to
as ''Inventories'').
(e) All rights
of Seller under sales agreements, franchises, license agreements,
lease agreements, maintenance agreements, procurement agreements,
consultant agreement, employee agreements, invention agreements and
all other agreements of whatever nature or kind relating to
Computer Technology, Software or Proprietary Rights specifically
defined and described in the Schedule of Contract Rights, Schedule
E, attached hereto and made a part hereof (hereinafter collectively
referred to as ''Contract Rights'').
(f) All rights
of Seller in the domain name and url http://www.clearlobby.com
being more specifically defined and described in the Schedule of
Inventories, Schedule D, attached hereto and made a part
hereof.
All assets of
Seller to be transferred to the Buyer pursuant hereto, including
the Computer Technology, Software, Proprietary Rights, Inventories
and Contract Rights, are sometimes hereinafter collectively
referred to as ''Seller's Assets.''
1.2 Excluded
assets. The following shall be excluded from Seller's Assets
being sold and transferred to Buyer hereunder:
(a) Seller's
cash on hand and bank deposits at the time of Closing.
(b) All
accounts receivable, refundable income taxes, prepaid interest,
investments in marketable securities, loans and exchanges; and
loans receivable.
(c) All stock
or securities, in whatever form, of Seller.
(d) All
liabilities or obligations of Seller, in existence at the time of
Closing as well as anytime after the closing, including, accounts
payable, but excluding the obligations expressly included in
Contract Rights.
(e) All leases
for land and/or buildings.
1.3
Encumbrances. The sale and transfer of Seller's
Assets shall, at the time of Closing, be free and clear of all
obligations, security interests, liens, infringements and
encumbrances whatsoever..
1.4 Purchase
price . Subject to the provisions of Paragraph 1.5 and the
Promissory Note attached hereto as Schedule G, the purchase price
for the sale and transfer of Seller's Assets to Buyer is the sum of
$250,000.00. The purchase price shall be payable as
follows:
(a) At the time
of Closing, by wire transfer to Seller's account at Citizen’s
Bank $10,000.00. Wire transfer and account information
shall be provided by the Seller to the Buyer at Closing.
(b) The
remaining $240,000.00 of the purchase price shall disbursed by
Buyer to Seller in accordance with the terms of the Promissory Note
dated September 11, 2008 and attached hereto as Schedule
F.
(d) Sean Hanlon
and Gregory Englehardt shall each be issued 10,000 shares of SEC
144 restricted stock in Buyers Company.
1.5
Closing. The completion of the contemplated
transactions is herein designated as the Closing, which shall take
place on the 9th day of September, 2008, or such later date
as may be mutually agreed upon by the parties.
1.6
Intentionally Omitted.
1.7 Access
and information . Seller shall give to Buyer, Buyer's
accountants, technical personnel, counsel and other representatives
access, during normal business hours, from the date hereof to
Closing, to Computer Technology, Software, Inventories, books,
records, contracts and commitments of Seller (including Contract
Rights) and shall furnish Buyer, during such period, with
information concerning Seller's Assets as Buyer may reasonably
request. Such information shall be subject to the
provisions of Paragraph 8.15.
1.8 Conduct
of business . Seller warrants and represents to and covenants
and agrees with Buyer that, pending completion of the Closing,
unless otherwise agreed in writing by Buyer:
(a) Seller
shall not sell, license, contract, commit or otherwise encumber
Seller's Assets, other than in the ordinary course of
business.
(b) Seller
shall carry and continue in force and effect through the Closing,
such fire and extended coverage insurance on the Inventories as is
in existence of the date of this Agreement.
(c) Seller
shall not amend, modify or terminate any agreement to which it is a
party and which in any way relates to Seller's Assets, without the
prior written consent of Buyer.
(d) There will
be no increase in any compensation payable or to become payable by
Seller to any employee, agent or consultant.
2.
Warranties and Representations of Seller
Seller warrants
and represents to Buyer as follows:
2.1
Corporate organization. Seller is a corporation
duly organized, validly existing and in good standing under the
laws of the State of Delaware and is duly qualified to do business
in the Commonwealth of Massachusetts and has full power and
authority to carry on its current business and to own, use and sell
its assets, including Seller's Assets, and properties.
2.2
Corporate authority. The execution and delivery of this
Agreement to Buyer and the carrying out of the provisions hereof
have been duly authorized by the Board of Directors of Seller and
authorized by Seller's shareholders, and at Closing, Seller shall
furnish Buyer copies of the authorizing resolutions of Seller's
Board of Directors and its shareholders.
2.3 Labor
issues. To the best of Seller's knowledge and
belief, no strike, picketing or similar action is pending or
threatened against Seller by its employees or any labor
union. To the best of its knowledge and belief, Seller
is not engaged in any unfair labor practices in connection with the
operation of the business of Seller relating to Seller's
Assets. Seller will not be responsible for any
violations arising or determined subsequent to Closing that have
been caused by any act of Buyer or any failure to act by
Buyer. Seller represents and warrants that it has not
had any solicitation by any labor organization within the preceding
three years.
2.4
Non-infringement. The Computer Technology,
Software, Proprietary Rights, and Inventories, in whole or in part,
do not infringe, to the best of Seller’s knowledge, any
patents, copyrights, trade secrets, trademarks or other proprietary
rights of any third parties and no rights or licenses are required
from third parties to exercise any rights with respect to Seller's
Assets or any portion thereof.
2.5
Proprietary rights. The Proprietary Rights are
in full force and effect and there are no liens, claims,
proceedings or causes of actions that in any way affect the
validity or enforceability of such Proprietary
Rights. Except for licenses granted in the ordinary
course of business to purchasers/licensees of Seller's products, no
rights or licenses, express or implied, have been granted to any
third parties under Proprietary Rights or any portion
thereof
2.6
Contracts, licenses, permits and approvals.
(a) Seller has
no presently existing contracts or commitments extending beyond the
execution date hereof that in any way relate to Seller's Assets
that are not included in the Schedule of Contract Rights, Schedule
E hereto.
(b) Seller does
not have any obligation under any collective bargaining agreement
or any other contract with a labor union. Except to the
extent set forth in the Schedule of Contract Rights, Schedule E
hereto, Seller is not a party to any executive or employee
compensation plan or agreement or compensatory plan or agreement
with any independent contractors, or employees or agents of Seller,
including, without limitation, any pension, retirement, profit
sharing, stock purchase, stock option, bonus or savings
plan. Seller agrees to pay or allow as a credit to Buyer
any vacation or sick pay accrued to Seller's employees at
Closing.
(c) Seller
agrees to inform Buyer of any changes in status of the Paragraph
2.6 representations.
2.7
Compliance. Neither the execution and delivery
of this Agreement, nor any instrument or agreement to be delivered
by Seller to Buyer at the Closing pursuant to this Agreement, nor
the compliance with the terms and provisions thereof by Seller,
will result in the breach of any applicable statute or regulation
promulgated thereunder, or any administrative or court order or
decree, nor will such compliance conflict with, or result in the
breach of, any of the terms, conditions or provisions of the
Certificate of Incorporation or bylaws of Seller, as amended, or
any agreement or other instrument to which Seller is a party, or by
which Seller is or may be bound, or constitute an event of default
or default thereunder, or with the lapse of time or the giving of
notice or both constitute an event of default
thereunder.
2.8 Fitness
of Assets. The Assets as of the date hereof
consist, and at Closing will consist of items of a quality and
quantity usable or salable in the ordinary course of business of
Seller and are currently used by Seller in the ordinary course of
business.
2.9
Litigation. There is no suit or action, or legal,
administrative, arbitration or other proceeding or governmental
investigation affecting Seller's Assets pending, or to the best
knowledge and belief of Seller, threatened against Seller that
materially or adversely affects the business of Seller relating to
Seller's Assets or Seller's Assets. Seller further
warrants and represents that there is no outstanding judgment,
decree or order against Seller that affects Seller or Seller's
Assets in any way.
2.10 Effect
of Agreement. The terms and conditions of this
Agreement and all other instruments and agreements to be delivered
by Seller to Buyer pursuant to the terms and conditions of this
Agreement are valid, binding and enforceable against Seller in
accordance with their terms, subject only to the applicable
bankruptcy, moratorium and other laws generally affecting the
rights and remedies of creditors.
2.11 Good
title. Seller has and shall transfer to Buyer at
Closing good and marketable title to Seller's Assets, free and
clear of any and all security interests, encumbrances or
liens.
2.12
Representations and warranties. No
representation or warranty by Seller in this Agreement or any
documents provided hereunder contains or will contain any untrue
statement or omissions or will omit to state any material fact
necessary to make the statements contained herein or therein not
misleading. All representations and warranties made by
Seller in this Agreement and any documents provided hereunder shall
be true and correct as of the date of Closing with the same force
and effect as if they had been made on and as of such
date.
2.13 Due
performance. Seller has in all material respects
performed all obligations required to be performed by it hereunder,
and is not in default in any material respect hereunder, or in
violation in any material respect of its Certificate of
Incorporation or bylaws, as amended, or any agreement, lease,
mortgage, note, bond, indenture, license or other documents or
undertaking, oral or written, to which it is a party or by which it
is bound, or by which it or any of its properties or assets may be
materially affected. Seller is not in violation or default in any
material respect of any order, regulation, injunction or decree of
any court, administrative agency or governmental
body. The execution and delivery of this Agreement, and
the consummation of the transactions contemplated hereby will not
result in any of the violations or defaults referred to in this
paragraph.
2.14
Subsidiaries. Seller does not have any
subsidiaries nor does it have any interest in any business
enterprise not disclosed herein relating to or competing with
Seller's Assets or any portion thereof.
2.15
Computer technology. Schedule A, Computer
Technology, is a complete listing of all items used and required by
Seller to design, manufacture, test, market and support the
computer system known as the Clearlobby website.
2.16
Software. Schedule B, Software, is a complete
schedule of all software marketed by Seller for use on or with the
Computer Technology, there are no known errors, malfunctions and/or
defects in the Software; there is no known unauthorized use of the
Software or any portion thereof by any third party; and there is no
known users of the software other than the parties
hereto.
2.17 Rights
of Seller in Computer Technology and Software.
Computer Technology and Software have been created
solely by and / or for Seller who is under a contractual obligation
to assign all right, title and interest therein to Buyer the terms
and conditions set forth in this agreement.
2.18 Date
and Time Compliance of Computer Technology and Software.
Seller represents and warrants that the computer
technology and software does and shall operate in a well-defined,
correct and predictable manner when using any date or time, and
does and shall not cause material errors related to any date or
time. Seller shall not be responsible for any computer
technology or software malfunctions or errors that occur subsequent
to the Closing if the Buyer has made material changes to the
technology purchased under this
Agreement. Notwithstanding any provisions of this
Agreement to the contrary, Section 2.19 shall survive the Closing
for a period of twelve (12) months.
2.19
Non-Competition. Seller hereby agrees not to
compete directly or indirectly with the business of Buyer or any of
its affiliates, within the United States of America for a period of
Two ("2") Years following the effective date of this
Agreement. As used herein "not to compete" shall mean
that Seller shall not own, manage, operate, advise, consult, invest
in, be engaged in or otherwise assist a business substantially
similar to, or competitive with, the business of Buyer as of the
date of this Agreement. For purposes of this Section,
Seller shall include all officers, directors and employees of
Seller’s Corporation. In addition, for purposes of
this Agreement, the “Business” of Buyer shall be that
which is conducted by the iMedicor division of Buyer, specifically:
(i) physician to physician file sharing; (ii) continuing medical
education; (iii) educational programs for the healthcare industry;
and (iv) online pharmaceutical industry to physician sales and
marketing interactions.
2.20
Non-Solicitation of Clients and Customers.
Seller hereby agrees that following the execution of
this Agreement that they shall not, as a company, consultant or
agent for any other entity or person, seek to solicit or carry out
any work of the same or similar nature, or offer, develop, license
any similar product or service to the Assets sold herein, for any
client or customer of Buyer or any of its affiliates. As
used herein "similar product or service" shall mean any product or
service similar to that offered, licensed, contemplated or
developed in a similar Business (as defined herein) to
Buyer.
2.21
Non-Solicitation of Buyer’s Employees.
Seller hereby agrees that they shall not as a company, employer,
consultant or agent for any other entity or person, solicit, engage
or employ any employee of the Buyer. Seller shall not
induce any Employee of Buyer or any of its affiliates to terminate
his or her employment with Buyer or any of its affiliates, or hire
or assist in the hiring of any such Employee by any other entity or
person.
3.
Warranties and Representations of Buyer
Buyer warrants
and represents to Seller as follows:
3.1
Corporate organization. Buyer is a corporation
duly organized, validly existing and in good standing under the
laws of the State of Nevada and is duly qualified to do business in
the State of New York and has full power and authority to carry on
its current business and to purchase, own, use and sell its assets
and properties.
3.2
Corporate authority. The execution and delivery
of this Agreement to Seller and the carrying out of the provisions
hereof have been duly authorized by the Board of Directors of
Buyer, and at Closing, Buyer shall furnish Seller a copy of the
authorizing resolutions of Buyer's Board of Directors.
3.3 Binding
nature. This Agreement shall be, when duly executed
and delivered, a legal and binding obligation of Buyer, enforceable
in accordance with its terms.
3.4
Representations and warranties. No warranties or
representations of Buyer in this Agreement contains or will contain
any untrue statement or omissions, or will omit to state a material
fact necessary to make the statements contained herein not
misleading. All representations and warranties made by
Buyer in this Agreement shall be true and correct as of Closing
with the same force and effect as if they had been made on and as
of such date.
3.5
Compliance with securities laws. To the best of
Buyer's knowledge and belief, neither Buyer nor any officer,
director, affiliate, or controlling person of Buyer has committed
any violation, or been in any way in contravention, of any law,
rule or regulation governing transactions in securities, in
connection with the transactions herein.
3.6
Inspection and value. Buyer has formed its own
opinion as to the value of Seller's Assets being purchased
hereunder. Seller's warranties include such express
written warranties as are contained in this Agreement.
3.7
Litigation. There are no pending, or to the best
knowledge and belief of Buyer, threatened actions or proceedings
before any court or administrative agency or other authority that
might or will materially or adversely affect Buyer's ability or
right to perform all of Buyer's obligations hereunder.
3.8
Compliance. Neither the execution and delivery
of this Agreement, nor any instrument or agreement to be delivered
by Buyer to Seller at the Closing pursuant to this Agreement, nor
the compliance with the terms and provisions thereof by Buyer, will
result in the breach of any applicable statute or regulation
promulgated thereunder, or any administrative or court order or
decree, nor will such compliance conflict with, or result in the
breach of, any of the terms, conditions or provisions of the
Certificate of Incorporation or bylaws of Buyer, as amended, or any
agreement or other instrument to which Buyer is a party, or by
which Buyer is or may be bound, or constitute an event of default
or default thereunder, or with the lapse of time or the giving of
notice or both constitute an event of default
thereunder.
3.9 Effect
of Agreement. The terms and conditions of this
Agreement and all other instruments and agreements to be delivered
by Buyer to Seller pursuant to the terms and conditions of this
Agreement are valid, binding and enforceable against Buyer in
accordance with their terms.
3.10 Good
Title. Buyer has and shall transfer to Sean Hanlon and Gregory
Englehardt at Closing good and marketable title to 10,000 SEC 144
restricted shares each, free and clear of any and all security
interests, encumbrances, or liens.
3.11 Due
performance. Buyer has in all material respects
performed all obligations required to be performed by it hereunder,
and is not in default in any material respect hereunder, or in
violation in any material respect of its Certificate of
Incorporation or bylaws, as amended, or any agreement, lease,
mortgage, note, bond, indenture, license or other documents or
undertaking, oral or written, to which it is a party or by which it
is bound, or by which it or any of its properties or assets may be
m