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Title: |
Asset Purchase Agreement |
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Date: |
2002 |
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Preview shows 14KB of 180KB total |
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$56 |
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ID: |
#1118777 |
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<TEXT>
================================================================================
ASSET PURCHASE AGREEMENT
among:
TTR TECHNOLOGIES, INC.,
a Delaware corporation;
TTR TECHNOLOGIES, LTD.,
an Israeli corporation;
MACROVISION CORPORATION,
a Delaware corporation;
and
MACROVISION EUROPE LTD.,
a United Kingdom company
----------------------------
Dated as of November 4, 2002
----------------------------
================================================================================
<PAGE>
ASSET PURCHASE AGREEMENT
THIS ASSET PURCHASE AGREEMENT is entered into as of November 4, 2002, by
and among: TTR TECHNOLOGIES, INC., a Delaware corporation (the "Seller"), TTR
TECHNOLOGIES, LTD., an Israeli corporation and wholly owned subsidiary of the
Seller ("Seller Sub") (collectively, the "Seller Corporations"), MACROVISION
CORPORATION, a Delaware corporation ("Parent") and MACROVISION EUROPE LTD., a
United Kingdom company and a wholly owned subsidiary of Parent (the
"Purchaser"). Certain capitalized terms used in this Agreement are defined in
Exhibit A.
RECITALS
A. The Seller, Seller Sub, Parent and the Purchaser wish to provide for
the sale by the Seller Corporations to the Purchaser of the Designated Assets
(as defined in Section 1.1) on the terms and subject to the conditions set forth
in this Agreement.
B. In order to induce Parent and the Purchaser to enter into this
Agreement and to consummate the transactions contemplated by this Agreement,
concurrently with the execution and delivery of this Agreement, certain
stockholders of the Seller (including all of the directors and executive
officers of the Seller) are entering into Voting Agreements and related proxies
in favor of Parent and the Purchaser (the "Voting Agreements"), by which such
stockholders are agreeing to vote in favor of and otherwise approve this
Agreement (including the sale by the Seller of the Designated Assets to the
Purchaser in accordance herewith).
C. In order to induce Parent and the Purchaser to enter into this
Agreement and to consummate the transactions contemplated by this Agreement,
concurrently with the execution and delivery of this Agreement, the Seller
Corporations are entering into a Noncompetition Agreement in favor of Parent and
the Purchaser, and the Key Employees are entering into Assignment Agreements in
favor of the Purchaser.
D. This Agreement has been approved by the respective boards of directors
of Parent, the Purchaser, the Seller Corporations, and the Voting Agreements
have been approved by the board of directors of the Seller.
AGREEMENT
The Parties to this Agreement, intending to be legally bound, agree as
follows:
1. SALE OF DESIGNATED ASSETS; RELATED TRANSACTIONS.
1.1 Sale of Designated Assets. The Seller Corporations shall cause to be
sold, assigned, transferred, conveyed and delivered to the Purchaser, at the
Closing, good and valid title to the Designated Assets, free of any
Encumbrances, on the terms and subject to the conditions set forth in this
Agreement. For purposes of this Agreement, "Designated Assets" shall mean and
include all of the properties, rights, interests and other tangible and
intangible
1.
<PAGE>
assets of the Seller Corporations that relate in any material respect to the
Business of the Seller Corporations; provided, however, that the Designated
Assets shall not include any Excluded Assets. Without limiting the generality of
the foregoing, the Designated Assets shall include, but not be limited to, the
following:
(a) Proprietary Assets: (i) All of the Proprietary Assets of the
Seller Corporations (including the Proprietary Assets set forth on Part 1.1 of
the Disclosure Letter), (ii) any counterparts, reissues, divisions, extensions,
continuations and continuations in part related to, and any other patents
claiming priority from, any of the Proprietary Assets of the Seller
Corporations, in each case in any jurisdiction in the world, and (iii) Seller's
optical media software copy protection technology as further described in
Exhibit F to the Alliance Agreement (as defined in Section 5.7 hereof),
including but not limited to its CD and DVD signatures, encoder modules and
other technology, and all improvements and enhancements thereto, goodwill and
similar or related assets;
(b) Seller Contracts: All rights of the Seller Corporations under
the Seller Contracts (including the Seller Contracts identified on Part 1.1 of
the Disclosure Letter);
(c) Governmental Authorizations: All Governmental Authorizations
held by the Seller Corporations (including the Governmental Authorizations
identified in Part 2.10 of the Disclosure Letter) relating to the Designated
Assets;
(d) Claims: All claims (including claims for past infringement of
Proprietary Assets) and causes of action of the Seller Corporations against
other Persons relating to the Designated Assets (regardless of whether or not
such claims and causes of action have been asserted by the Seller Corporations),
and all rights of indemnity, warranty rights, rights of contribution, rights to
refunds, rights of reimbursement and other rights of recovery possessed by the
Seller Corporations relating to the Business (regardless of whether such rights
are currently exercisable);
(e) Books and Records: All books, records, files and data of the
Seller Corporations relating to the Designated Assets, not including, however,
the Retained Books and Records;
Proceeds: Without limiting any restriction contained herein on any
such sale or other disposition, an amount of cash and receivables equal to the
gross proceeds from the sale or other disposition of any of the Designated
Assets after the date hereof;
(f) Goodwill: All goodwill associated with the Designated Assets or
the Business;
(g) Post-Closing Revenues: All rights of the Seller Corporations to
receive cash, if any, following the Closing Date under or pursuant to any Seller
Contract or otherwise relating to the Business; and
(h) Identified Assets and Rights: All other assets and rights
identified in Part 1.1 of the Disclosure Letter.
2.
<PAGE>
1.2 Excluded Assets. The Seller Corporations shall retain all rights to,
and there shall be specifically excluded from this Agreement, the assets of
Seller Corporations specified on Part 1.2 of the Disclosure Letter
(collectively, the "Excluded Assets").
1.3 Purchase Price.
(a) As consideration for the sale of the Designated Assets to the
Purchaser, the Purchaser has agreed, on the terms and subject to the conditions
set forth herein, to pay to the Seller Sub certain cash amounts, to deliver to
the Seller Sub certain shares of common stock of Seller and to assume the
Designated Contractual Obligations (as defined in Section 1.4 of this Agreement)
of the Seller, as follows:
(i) at the Closing, the Purchaser shall pay to the Seller
Corporations, in cash and allocated between them in accordance with Part
1.3 of the Disclosure Letter, an amount equal to Five Million Two Hundred
Fifty Thousand U.S. Dollars (US$5,250,000.00) (the "Initial Payment
Amount"), subject to reduction in accordance with the terms of Sections
4.7 and 4.8;
(ii) at the Closing, the Purchaser shall assume the Designated
Contractual Obligations by entering into with the Seller Corporations an
Assignment and Assumption Agreement in substantially the form of Exhibit B
hereto (the "Assignment and Assumption Agreement"); and
(iii) at the Closing, Parent shall deliver to the Seller
Corporations a stock certificate or certificates representing a total of
1,880,937 shares of Common Stock of the Seller (the "Seller Stock
Certificate"), properly endorsed for transfer, allocated between them in
accordance with Part 1.3 of the Disclosure Letter.
1.4 No Other Assumed Liabilities.
(a) Subject to Section 1.4(b), the Purchaser shall not assume any
Liabilities of the Seller Corporations whatsoever relating to the Business, the
Designated Assets or otherwise.
(b) Notwithstanding Section 1.4(a), pursuant to the Assignment and
Assumption Agreement, at and following the Closing the Purchaser will become
obligated to perform the obligations of the Seller under the Assumed Contracts,
but only to the extent such obligations: (i) arise out of facts and
circumstances occurring after the Closing Date; (ii) do not arise from or relate
to any Breach by any of the Seller Corporations of any provision of any of the
Assumed Contracts; (iii) do not arise from or relate to any event, circumstance
or condition occurring or existing on or prior to the Closing Date that, with
notice or lapse of time, would constitute or result in a Breach of any of the
Assumed Contracts; and (iv) are ascertainable (in nature and amount) solely by
reference to the express terms of the Assumed Contracts (collectively, the
"Designated Contractual Obligations");
provided, however, that notwithstanding the foregoing, and notwithstanding
anything to the contrary contained in this Agreement, the "Designated
Contractual Obligations" shall not include, and the Purchaser shall not be
required to assume or to perform or discharge:
3.
<PAGE>
(1) any Liability of any Person under the Assumed Contracts,
except for Liabilities of the Seller Corporations expressly set forth therein;
(2) any Liability of the Seller Corporations arising from or
relating to the execution, delivery or performance of any of the Transactional
Agreements;
(3) any Liability of the Seller Corporations arising from or
relating to any action taken by the Seller, or any failure on the part of the
Seller Corporations to take any action, at any time after the Closing Date;
(4) any Liability of the Seller arising from or relating to
(x) any services performed by the Seller Corporations for any customer prior to
the Closing Date, or (y) facts and circumstances prior to the Closing Date
giving rise to any claim or Proceeding against the Seller;
(5) any Liability of the Seller Corporations for the payment
of any Tax;
(6) any Liability of the Seller Corporations to any employee
or former employee of the Seller under or with respect to any employee benefit
plan, profit sharing plan or dental plan or for severance pay or accrued
vacation pay or wages;
(7) any Liability of the Seller Corporations to any Related
Party;
(8) any Liability under any Contract, if the Seller
Corporations shall not have obtained, prior to the Closing Date, any Consent
required to be obtained from any Person with respect to the assignment or
delegation to the Purchaser of any rights or obligations under such Contract;
(9) any Liability that arises or exists by virtue of any
Breach of, (x) any representation or warranty made by the Seller or Seller Sub
in any of the Transactional Agreements, or (y) any covenant or obligation of the
Seller or Seller Sub contained in any of the Transactional Agreements; or
(10) any other Liability of the Seller Corporations not
expressly assumed by the Purchaser pursuant to the provisions of any of the
Transactional Agreements.
1.5 Taxes. The Seller shall bear and pay, and shall reimburse the
Purchaser for, any sales taxes, use taxes, transfer taxes, documentary charges,
recording fees or similar taxes, charges, fees or expenses that may become
payable in connection with the sale of the Designated Assets to the Purchaser or
in connection with any of the other Transactions. The Seller shall reasonably
cooperate with the Purchaser to file all requests for certifications of sales
and use tax due. The Purchaser will reasonably cooperate with the Seller to
permit the computer software included within the Designated Assets to be
transferred to the Purchaser electronically pursuant to the "load and leave" or
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