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Exhibit 99.2
ASSIGNMENT AND ASSUMPTION AGREEMENT (US)
This ASSIGNMENT AND ASSUMPTION AGREEMENT (this "Agreement"),
dated as of
January 21, 2005, is entered into by and between Citel
Technologies, Inc., a
Delaware corporation ("Purchaser"), and Verso Technologies,
Inc., a Minnesota
corporation, MCK Communications, Inc., a Nevada corporation, MCK
Communications,
Inc., a Delaware corporation, MCK Telecommunications Inc., a
Yukon Territory
corporation, and Digital Techniques, Inc., a Texas corporation
(collectively,
"Sellers"), pursuant to the Asset Purchase Agreement (as
amended, supplemented
or otherwise modified from time to time in accordance with its
terms, the "Asset
Purchase Agreement"), dated as of January 21, 2005, by and among
Purchaser,
Sellers, Citel Technologies Limited, company number 02459517, a
corporation
organized under the laws of England and Wales, and MCK Canada
Operations Inc., a
corporation organized under the laws of British Columbia. Each
of the Purchaser
and Sellers is referred to herein individually as a "Party" and
together as the
"Parties." Capitalized terms used herein but not defined herein
shall have the
meanings set forth in the Asset Purchase Agreement.
RECITALS:
WHEREAS, pursuant to Section 2.1(j) of the Asset Purchase
Agreement,
Sellers and Purchaser have agreed that the Purchaser shall
purchase, acquire,
accept and assume from Sellers, all of each Seller's right,
title and interest
in, to and under, and all obligations under or relating to, the
Contracts set
forth on Annex A hereto (the "Assigned Contracts"); and
WHEREAS, pursuant to Section 3.1 of the Asset Purchase Agreement
and
subject to Section 3.2 thereto, Sellers and Purchaser have
agreed that the
Purchaser shall assume and become liable for each of the
Liabilities set forth
on Annex B hereto (the "Assumed Liabilities").
NOW THEREFORE, in consideration of the mutual promises and
covenants set
forth in this Agreement, and for other good and valuable
consideration, the
receipt and sufficiency of which is hereby acknowledged and
accepted, each Party
hereby agrees as follows:
1. Assignment and Assumption of Assigned Contracts. Upon the
terms and
subject to the condition set forth in the Asset Purchase
Agreement from and
after the Closing, (a) each Seller does hereby assign and
delegate to Purchaser
all of such Seller's right, title and interest in, to and under,
and all
obligations under or relating to, the Assigned Contracts and (b)
Purchaser does
hereby assume and agrees to pay, defend, discharge and perform
as and when due
all Liabilities and obligations to perform arising under or
relating to each of
the Assigned Contracts, except Liabilities, even if arising
post-Closing, for
performance under the Assigned Contracts prior to Closing.
2. Assumption of Assumed Liabilities. Upon the terms and subject
to the
condition set forth in the Asset Purchase Agreement, Purchaser
does hereby
assume, and from and after the Closing shall be obligated to
pay, perform and
discharge when due the Assumed Liabilities. Purchaser assumes no
Excluded
Liabilities, and the parties hereto agree that all such Excluded
Liabilities
shall remain the sole responsibility of Sellers.
Assignment and Assumption Agreement (US)
1
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3. Relationship to Asset Purchase Agreement. Sellers make no
express or
implied representations or warranties in this Agreement of any
kind whatsoever
with respect to the Assigned Contracts. This Agreement in no way
defeats,
limits, alters, impairs, enhances or enlarges any right,
obligation, claim or
remedy under the Asset Purchase Agreement, including any rights
the Parties may
have under the representations, warranties and indemnities set
forth therein. If
any provision of this Agreement is construed to conflict with a
provision of the
Asset Purchase Agreement, the provision in the Asset Purchase
Agreement shall be
deemed controlling.
4. Governing Law; Waiver of Jury Trial. This Agreement shall be
governed
by, and interpreted in accordance with, the laws of the State of
New York
applicable to contracts made and to be performed entirely within
that State,
without reference to its conflict of laws rules. Each of the
Sellers and
Purchaser irrevocably consents to the service of process in any
action or
proceeding hereunder by the mailing of copies thereof by
registered or certified
airmail, postage prepaid, to the address specified in Section
15.4 of the Asset
Purchase Agreement. The foregoing shall not limit the rights of
any Party to
serve process in any other manner permitted by applicable law or
regulation or
to obtain execution of judgment in any other jurisdiction.
5. Binding Effect; Assignment: No Third Party Beneficiary.
Except as
otherwise expressly provided herein, the provisions hereof shall
inure to the
benefit of, and be binding upon, each of the Sellers and
Purchaser and its
respective successors and assigns. Neither this Agreement nor
any rights
hereunder shall be assignable by any Party without the prior
written consent of
the other Party. This Agreement is for the sole benefit of the
Parties and their
respective successors and permitted assigns and nothing herein,
express or
implied, is intended or shall confer upon any other person or
entity any legal
or equitable right, benefit or remedy of any nature whatsoever
under or by
reason of this Agreement.
6. Counterparts. This Agreement may be executed in two or
more
counterparts, each of which shall be deemed to constitute an
original, but all
of which together shall constitute one and the same
document.
[Remainder of Page Intentionally Left Blank]
Assignment and Assumption Agreement (US)
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IN WITNESS WHEREOF, the Parties have caused this Assignment and
Assumption
Agreement to be executed as of the date first written above by
their respective
officers thereunto duly authorized.
SELLERS:
Verso Technologies, Inc. MCK Communications, Inc. (NV)
By: /s/ Juliet M. Reising By: /s/ Juliet M. Reising
--------------------------------
------------------------------
Name: Juliet M. Reising Name: Juliet M. Reising
------------------------------ ----------------------------
Title: Executive Vice President Title: Vice President
and Chief Financial Officer ---------------------------
-----------------------------
MCK Communications, Inc. (DE) MCK Telecommunications Inc.
By: /s/ Juliet M. Reising By: /s/ Juliet M. Reising
--------------------------------
------------------------------
Name: Juliet M. Reising Name: Juliet M. Reising
------------------------------ ----------------------------
Title: Vice President Title: President
----------------------------- ---------------------------
Digital Techniques, Inc.
By: /s/ Juliet M. Reising
--------------------------------
Name: Juliet M. Reising
------------------------------
Title: Vice President
-----------------------------
PURCHASER:
Citel Technologies, Inc.
By: /s/ Nicholas G. Gretton
--------------------------------
Name: Nicholas G. Gretton
------------------------------
Title: Chief Executive Officer,
President and Secretary
-----------------------------
Assignment and Assumption Agreement (US)
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ANNEX A
ASSIGNED CONTRACTS
SCHEDULE 2.1(j): CONTRACTS - The Assigned Contracts are those
identified with an
X in the Purchased Asset column.
ACTIVE (NON-DTI)
<TABLE>
<CAPTION>
ACCOUNT MCK
TYPE NUMBER PARTY COUNTERPARTY
---- ------ ----- ------------
<S> <C> <C> <C>
Development/manufacturing MCK-NV ABS Business Systems
(Alcatel)
OEM ALC003 MCK-? Alcatel Business Systems
Distributor ANI006 MCK-NV Anixter Canada
Distributor ANI010 MCK-NV Anixter Europe Holdings B.V.
Reseller BCS001 MCK-NE BellSouth Communication Systems, LLC
Value Add Distributor MCK-DE Dacon Electronics Plc
Distributor MCK-NV Dacon Electronics Plc
OEM MCK-NV Dictaphone Corporation
Value Add Distributor DIG013 MCK-DE Digital Techniques (Asia)
Limited
OEM MCK-DE Ericsson Business Networks AB
Distributor GBH002 MCK-DE GBH Distributing, Inc.
Value Add Distributor IME001 MCK-DE Imeco Telecom Inc.
Distributor MCK-DE Iwatsu America, Inc.
Distributor NEC001 MCK-DE NEC America, Inc.
Distributor MCK-NV NEC America, Inc.
Product Development MCK-NV NEC Corporation and NEC America,
Inc.
<CAPTION>
AGREEMENT PURCHASED EXCLUDED CONSENT
ACCOUNT DATE ASSET ASSET REQUIRED
TYPE NUMBER MM/DD/YY SCHEDULE 2.1(j) SCHEDULE 2.2 SCHEDULE
5.3
---- ------ -------- --------------- ------------
------------
<S> <C> <C> <C> <C> <C>
Development/manufacturing 04/27/99 X Yes
OEM ALC003 11/14/00 X Yes
Distributor ANI006 06/10/99 X No
Distributor ANI010 06/3/01,05/12/04 X No
amendment
Reseller BCS001 09/11/98 X Yes
Value Add Distributor 03/05/02 X No
Distributor 01/14/99 X No
OEM 03/03/98 X Yes
Value Add Distributor DIG013 07/02/02 X No
OEM 08/01/00 X No
Distributor GBH002 10/26/01 X No
Value Add Distributor IME001 07/31/02 X No
Distributor 07/31/00 X Yes
Distributor NEC001 01/25/00 X Yes
Distributor 01/22/99 X Yes
Product Development 01/31/97 See note below* See note below*
Yes
</TABLE>
Assignment and Assumption Agreement (US)
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<TABLE>
<CAPTION>
ACCOUNT MCK
TYPE NUMBER PARTY COUNTERPARTY
---- ------ ----- ------------
<S> <C> <C> <C>
OEM MCK-DE Nitsuko America
Distributor SPR005 MCK-NV North Supply Company (Sprint)
Manufacturer MCK- ? OEM Worldwide LLC
Distributor MCK-DE Optus, Inc.
Distributor PAN002 Verso Panasonic Communications Company (UK)
Ltd. and Panasonic
Business Systems
Distributor Verso Panasonic Communications Company (UK) Ltd. and
Panasonic
Marketing Europe GmbH
OEM POS002 MCK-DE Positron Public Safety Systems, Inc.
Distributor SBC002 MCK-DE SBC Services, Inc.
Distribution CAT005 MCK-? ScanSource, Inc. d/b/a Catalyst
Telecom
Distributor TEL119 MCK-DE TeleCorp, Inc.
Value Add Distributor TEL122 MCK-DE Teleswitch Communications,
Inc.
Distributor TOS001 MCK-DE Toshiba America Information Systems,
Inc.
Distributor VER012 MCK-? Verizon Network Integration Corp.
Master Support Agreement MCK- ? Vital Network Services,
L.L.C.
Distributor VOD002 MCK-DE Voda One Corp.(nka Westcon Group
Inc.)
Distributor WHI003 MCK-DE White Radio, a division of Cygnal
Technologies Ltd.
Value Add Distributor WIL012 MCK-DE Williams Telecommunications
Systems
<CAPTION>
AGREEMENT PURCHASED EXCLUDED CONSENT
ACCOUNT DATE ASSET ASSET REQUIRED
TYPE NUMBER MM/DD/YY SCHEDULE 2.1(j) SCHEDULE 2.2 SCHEDULE
5.3
---- ------ -------- --------------- ------------
------------
<S> <C> <C> <C> <C> <C>
OEM 07/26/00 See note below* See note below* Yes
Distributor SPR005 02/01/99 X Yes
Manufacturer 08/29/03 X No
Distributor 02/01/02 X No
Distributor PAN002 04/15/04 X Yes
Distributor 04/15/04 X Yes
OEM POS002 01/31/01 X Positron has termination
right
Distributor SBC002 08/10/01 X Yes
Distribution CAT005 12/10/99 X Yes
Distributor TEL119 12/03/03 X No
Value Add Distributor TEL122 10/26/02 X No
Distributor TOS001 04/17/00 X Yes
Distributor VER012 03/11/02 X Yes
Master Support Agreement No date X No
Distributor VOD002 01/22/01 X Yes
Distributor WHI003 07/30/01 X No
Value Add Distributor WIL012 04/14/03 X No
</TABLE>
Assignment and Assumption Agreement (US)
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INACTIVE (NON-DTI)
<TABLE>
<CAPTION>
CONSENT
ACCOUNT MCK AGREEMENT DATE PURCHASED ASSET EXCLUDED ASSET
REQUIRED
TYPE NUMBER PARTY COUNTERPARTY MM/DD/YY SCHEDULE 2.1(J) SCHEDULE
2.2 SCHEDULE 5.3
---- ------ ----- ------------ -------- ---------------
------------ ------------
<S> <C> <C> <C> <C> <C>
<C> <C>
Distributor NOR014 MCK-CA Northern Telecom Limited 07/17/95 See
note below* See note below* Yes
</TABLE>
REAL ESTATE LEASES
<TABLE>
<CAPTION>
PURCHASED EXCLUDED CONSENT
MCK ASSET ASSET REQUIRED
AGREEMENT ADDRESS PARTY COUNTERPARTY DATE SCHEDULE 2.1(J)
SCHEDULE 2.2 SCHEDULE 5.3
--------- ------- ----- ------------ ---- ---------------
------------ ------------
<S> <C> <C> <C> <C> <C>
<C> <C>
Phone switch letter 117 Kendrick Street MCK-DE Upromise, Inc. X
?
agreement
</TABLE>
DTI ACTIVE DISTRIBUTION AGREEMENTS (* SIGNIFIES NON-STANDARD
AGREEMENT)
<TABLE>
<CAPTION>
PURCHASED EXCLUDED CONSENT
ACCOUNT AGREEMENT ASSET ASSET REQUIRED
COUNTERPARTY NUMBER DATE MM/DD/YY SCHEDULE 2.1(j) SCHEDULE 2.2
SCHEDULE 5.3
------------ ------ ------------- --------------- ------------
------------
<S> <C> <C> <C> <C> <C>
BellSouth Services Incorporated 05/01/94 X Yes
Canadian Communications Products, Inc. 07/12/93 X Yes
Collins Communications Systems Co. 08/01/93 X Yes
Dictaphone Corporation 01/12/98 X Yes
DTI Asia 10/04/99 X Yes
DTI Asia 04/21/98 X Yes
Goserco Inc. 08/08/00 X Yes
GTE Communication Systems Corporation* 10/01/96 X Yes
Oscar Communications, Pty. Ltd. 06/30/95 X Yes
</TABLE>
Assignment and Assumption Agreement (US)
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