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Title: |
Asset and Share Purchase Agreement |
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Entities: |
BroadVision, Inc.; Ingram Micro Inc.; Softquad Software Ltd. |
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Date: |
2000 |
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Size: |
Preview shows 24KB of 158KB total |
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Price: |
$48 |
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ID: |
#1265223 |
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<SEQUENCE>20
<FILENAME>0020.txt
<DESCRIPTION>ASSET AND SHARE PURCHASE AGREEMENT
<TEXT>
<PAGE>
ASSET AND SHARE PURCHASE AGREEMENT
BETWEEN
1308870 ONTARIO INC.
- AND -
SOFTQUADINC.
- AND -
SOFTQUAD INTERNATIONAL INC.
MADE AS OF NOVEMBER 6, 1998
<PAGE>
TABLE OF CONTENTS
<TABLE>
<CAPTION>
PAGE
<S> <C> <C>
ARTICLE 1 INTERPRETATION...............................................1
1.01. Defined Terms................................................1
1.02. Knowledge....................................................3
1.03. Schedules....................................................3
1.04. Currency.....................................................3
1.05. Choice of Law and Attorney...................................3
1.06. Interpretation Not Affected by Headings or Party Drafting....4
1.07. Number and Gender............................................4
1.08. Time of Essence..............................................4
ARTICLE 2 PURCHASE AND SALE............................................4
2.01. Purchased Assets.............................................4
2.02. Unassignable Contracts.......................................8
2.03. Excluded Assets..............................................8
2.04. Assumed Liabilities..........................................9
2.05. Excluded Liabilities and Indemnity...........................9
2.06. Purchased Shares............................................10
2.07. Purchase Price..............................................11
2.08. Payment of Purchase Price...................................11
2.09. Allocation of Purchase Price................................11
2.10. Section 22 Election Re: Accounts Receivable.................11
2.11. Payment of Taxes............................................11
2.12. Goods and Services Tax Exemption............................11
ARTICLE 3 REPRESENTATIONS AND WARRANTIES..............................12
3.01. Representations and Warranties by the Vendor and SoftQuad...12
(1) Corporate Matters..................................12
(2) No Other Purchase Agreements.......................13
(3) Contractual and Regulatory Approvals...............13
(4) Governmental Licences..............................13
(5) Compliance with Constating Documents, Agreements
and Laws...........................................13
(6) Intellectual Property Rights.......................14
</TABLE>
-i-
<PAGE>
TABLE OF CONTENTS
<TABLE>
<CAPTION>
PAGE
<S> <C> <C>
(7) Financial Records..................................15
(8) Liabilities........................................15
(9) Absence of Certain Change or Events................15
(10) Tax Matters........................................16
(11) Litigation.........................................16
(12) Environmental Matters..............................16
(13) Title to Assets....................................16
(14) Real Properties....................................16
(15) Leased Premises....................................16
(16) Works Orders and Deficiencies......................17
(17) Lease of Personal Property.........................17
(18) Affiliates.........................................18
(19) Partnerships or Joint Ventures.....................18
(20) Restriction on Doing Business......................18
(21) Warranties and Discounts...........................18
(22) Licences, Agency and Distributorship Agreements....19
(23) Outstanding Agreements.............................19
(24) Good Standing of Agreements........................19
(25) Employees..........................................20
(26) Employment Agreements..............................20
(27) Labour Matters and Employment Standards............20
(28) Employee Benefit and Pension Plans.................20
(29) Insurance..........................................21
(30) Non-Arm's Length Matters...........................21
(31) Government Assistance..............................21
(32) Compliance with Laws...............................22
(33) Complete Conveyance................................22
(34) Vendor Residency...................................22
(35) Copies of Documents................................22
(36) Disclosure.........................................22
</TABLE>
-ii-
<PAGE>
TABLE OF CONTENTS
<TABLE>
<CAPTION>
PAGE
<S> <C> <C>
3.02. Representations and Warranties by SoftQuad..................22
(1) Corporate Authority and Binding Obligation.........22
(2) Status of UK.......................................22
(3) Authorized and Issued Capital of UK................23
(4) No Other Purchase Agreements.......................23
3.03. Representations and Warranties by the Purchaser.............23
(1) Corporate Authority and Binding Obligation.........23
(2) Authorized and Issued Capital of the Purchaser.....23
(3) No Other Purchase Agreements.......................24
(4) Contractual and Regulatory Approvals...............24
(5) Compliance with Constating Documents, Agreements
and Laws...........................................24
(6) Investment Canada Act..............................24
ARTICLE 4 SURVIVAL AND LIMITATIONS OF REPRESENTATIONS AND WARRANTIES..25
4.01. Survival of Warranties by the Vendor and SoftQuad...........25
4.02. Survival of Warranties by Purchaser.........................25
4.03. Limitations on Warranty Claims..............................25
ARTICLE 5 COVENANTS...................................................26
5.01. Covenant by the Vendor and SoftQuad.........................26
(1) Investigation of Business and Examination of
Documents..........................................26
(2) Conduct of Business................................26
(3) Transfer of Purchased Assets and Purchased Shares..27
(4) General Conveyance.................................27
(5) Retail Sales Tax...................................27
(6) Bulk Sales Act Legislation.........................27
(7) Pledge of Shares...................................27
(8) Transfer of Assumed Contracts......................28
(9) Payment to the Purchaser...........................28
(10) Loan to the Purchaser..............................28
(11) Non-Competition Agreement..........................28
</TABLE>
-iii-
<PAGE>
TABLE OF CONTENTS
<TABLE>
<CAPTION>
PAGE
<S> <C> <C>
(12) Licence Agreement re SoftQuad......................28
(13) Assignment of Loans to UK..........................28
(14) Assignment of Accounts Receivable..................28
5.02. Covenants by the Purchaser..................................28
(2) Employees..........................................29
(3) Post-Closing Access................................30
(4) Use of Names.......................................30
(5) Investment Canada Act..............................30
ARTICLE 6 CONDITIONS..................................................30
6.01. Conditions to the Obligations of the Purchaser..............30
(1) Accuracy of Representations and Warranties and
Performance of the Covenants.......................30
(2) No Restraining Proceedings.........................31
(3) Consents...........................................31
(4) Estoppel Certificates..............................31
(5) Employee...........................................31
(6) Leases for Premises................................31
(7) North American Distribution........................31
(8) Advance to the Purchaser...........................31
(9) Indemnity and Share Pledge.........................32
(10) Non-Competition Agreement..........................32
(11) Licence Agreement re SoftQuad......................32
(12) Assignment Agreements re Vendor's Trademarks
and Software.......................................32
(13) Assignment of Loans to UK Agreement................32
(14) Shareholders' Agreement............................32
(15) Protege Contract...................................32
(16) Payment of Accounts Payable Not Assumed............32
(17) Employee Stock Loans...............................32
(18) Opinion of Vendor Counsel..........................32
6.02. Waiver or Termination by Purchaser..........................33
</TABLE>
-iv-
<PAGE>
<TABLE>
<CAPTION>
PAGE
<S> <C> <C>
6.03. Conditions to the Obligations of the Vendor.................33
(1) Accuracy of Representations and Warranties and
Performance of Covenants...........................33
(2) No Restraining Proceedings.........................33
(3) Consents...........................................34
(4) Shareholders' Agreement............................34
(5) Promissory Note....................................34
(6) Opinion of Purchaser's Counsel.....................34
6.04. Waiver or Termination by Vendor.............................34
ARTICLE 7 CLOSING.....................................................34
7.01. Closing Arrangements........................................34
7.02. Documents to be Delivered...................................34
ARTICLE 8 INDEMNIFICATION AND SET-OFF.................................35
8.01. Indemnity by SoftQuad and the Vendor........................35
8.02. Indemnity by the Purchaser..................................36
8.03. Provisions Relating to Indemnity Claims.....................36
8.04. Right to Set -Off...........................................38
ARTICLE 9 GENERAL PROVISIONS..........................................38
9.01. Further Assurance...........................................38
9.02. Remedies Cumulative.........................................38
9.03. Notices.....................................................39
9.04. Counterparts................................................40
9.05. Expenses of Parties.........................................40
9.06. Brokerage and Finder's Fees.................................40
9.07. Announcements...............................................41
9.08. Assignment..................................................41
9.09. Successors and Assigns......................................41
9.10. Entire Agreement............................................41
9.11. Waiver......................................................41
9.12. Amendments..................................................41
</TABLE>
-v-
<PAGE>
SCHEDULES
Schedule No. Description
------------ -----------
2.01(a) Cash and Bank Balances
2.01(b) Accounts Receivable
2.01(c) Inventories
2.01(e) Machinery, Equipment, Furniture and Furnishings
2.01(f) Leased Equipment and Vehicles
2.01(g) Computer Equipment
2.01(h) Leased Computer Equipment
2.01(i) Leased Premises
2.01(k) Customer Contracts
2.01(m) Technology, Intellectual Property and Software
2.01(o) Licence Rights
2.04 (a) Assumed Liabilities
2.08 Not Used
2.09 Allocation of Purchase Price
3.01(3) Vendor's Contractual and Regulatory Approvals
3.01(6) Intellectual Property Rights
3.01(11) Litigation
3.01(12) Environmental Matters
3.01(13) Encumbrances to be Discharged
3.01(21) Warranties and Discounts
3.01(23) Contracts, Leases and Agreements
3.01(25) Employees
3.01(27) Labour Matters and Employment Standards
3.01(28) Employee Pension Plans
3.01(29) Insurance Policies
3.01(30) Non-Arm's Length Matters
3.01(31) Government Assistance
5.01 (10) Form of Promissory Note
5.01(11) Form of Non-Competition Agreement
5.01(12) Form of Trademark Licence Agreement
5.01(13) Form of U.K. Loan Assignment
6.01(7) Form of Agreement with Alpha Software Corporation
6.01(9) Form of Indemnity and Share Pledge Agreement
6.01(12) Form of Assignment Agreement re: Vendor's Trademarks
and Software Assignment Agreement
6.01(14) Form of Shareholders' Agreement
6.01(18) Opinion of Vendor's Counsel
6.03(6) Opinion of Purchaser's Counsel
-vi-
<PAGE>
ASSET AND SHARE PURCHASE AGREEMENT
THIS AGREEMENT made as of this 6th day of November, 1998. AMONG:
1308870 ONTARIO INC., a corporation incorporated under the
laws of the Province of Ontario (the "PURCHASER")
- and -
SOFTQUAD INC., a corporation amalgamated under the laws of the
Province of Ontario (the "VENDOR").
- and -
SOFTQUAD INTERNATIONAL INC., a corporation continued under the
laws of the Province of New Brunswick ("SOFTQUAD").
WHEREAS the Vendor is engaged in the development, marketing, licensing
and sale of certain software products;
AND WHEREAS the Vendor wishes to sell, and the Purchaser wishes to
purchase, the undertaking and the assets of such business upon the terms and
subject to the conditions hereinafter contained;
NOW THEREFORE, in consideration of the premises and the mutual
agreements and covenants herein contained, the parties hereto hereby covenant
and agree as follows:
ARTICLE 1
INTERPRETATION
1.01. Defined Terms
-------------
In this Agreement and in the Schedules hereto, unless there is
something in the subject matter or context inconsistent therewith, the following
terms and expressions will, have the following meanings:
(a) "AFFILIATE" of any person means any corporation which, directly or
indirectly, is controlled by, controls or is under direct or indirect
common control with such person;
(b) "ARM'S LENGTH" has the meaning ascribed to such term under the Income
Tax Act (Canada);
(c) "ASSUMED CONTRACTS" means all contracts, agreements, orders,
commitments and other engagements by or with third parties relating to
the Business which are included in the Purchased Assets;
<PAGE>
(d) "ASSUMED LIABILITIES" means the liabilities of the Vendor which are to
be assumed by the Purchaser pursuant to Section 2.04 hereof,
(e) "BUSINESS" means the business carried on by the Vendor which primarily
involves the development, marketing, licensing and sale of certain
software products;
(f) "BUSINESS DAY" means any day other than a day which is a Saturday, a
Sunday or a statutory holiday in the City of Toronto;
(g) "CLOSING DATE" means November 6, 1998 or such other date as the Vendor
and Purchaser may agree upon;
(h) "CLOSING TIME" means 4 p.m. (Toronto time) on the Closing Date or such
other time on the Closing Date as the parties hereto may agree upon;
(i) "CONDITION OF THE BUSINESS" means the condition of the assets,
liabilities, operations, activities, earnings, prospects, affairs or
financial position of the Business;
(j) "CONTROL" means, with respect to any corporation, the ownership of more
than 50% of the voting shares of that corporation, including any shares
which are voting only upon the occurrence of a contingency where such
contingency has occurred and is continuing;
(k) "CUSTOMER CONTRACTS" means any and all agreements entered into between
the Vendor and one or more third parties relating to the sale or
provision of goods or services by the Vendor to such third parties in
connection with the Business, including unfilled orders, commitments
and other engagements by or with such third parties; including without
limitation, those listed on Schedule 2.01(k) attached hereto;
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