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Title: |
Asset Purchase Agreement |
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Date: |
2000 |
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Preview shows 5KB of 40KB total |
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$41 |
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ID: |
#1332258 |
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Acquisition Agreement - GST
<PAGE>
ASSET PURCHASE AGREEMENT
This Asset Purchase Agreement (the "Agreement"), dated April 28,
1999, is between GST UNIVERSAL Inc., a Delaware corporation ("Seller"), and
COMPETITIVE COMMUNICATIONS, INC., a California corporation ("Purchaser").
On the terms and subject to the conditions of this Agreement,
Seller intends to sell and Purchaser intends to purchase all the assets of
Seller which are part of the private telephone systems listed on Schedule 4.7
(individually a "System" and collectively the "Systems") that are subject to the
Lease and Access Agreements, as defined below, and other assets as specified in
this Agreement. The assets of each System include one or more agreements, and
any amendments and modifications thereto, pursuant to which Seller has received
from the owner of the real property related to the System the right to own,
install and operate a private telephone system on the real property (each a
"Telephone Lease and Access Agreements").
The parties agree as follows:
1. TRANSFER OF ASSETS.
1.1 Sale of Assets. On the terms and subject to the conditions of
this Agreement, Seller will sell Seller's right, title and
interest in and to the "Assets", as defined below, to Purchaser.
All Assets sold under this Agreement will be free and clear of
all liens, claims and encumbrances except as otherwise provided
in this Agreement.
1.2 Description of Assets. The "Assets" are the assets of Seller
which comprise the Systems, comprised of the Telephone Lease and
Access Agreements, existing as of the date this Agreement or
acquired by Seller prior to Closing in the ordinary course of
business. Specifically, the Assets consist of (1) the assets of
Seller used to operate the Systems including its telephone
switching and voice mail equipment, all cable (including without
limitation aerial cable and underground cable, conduit, and all
spare parts and other items used in the maintenance, repair and
testing of the Systems); (2) Seller's right, title and interest
in and to the Telephone Lease and Access Agreements listed on
Schedule 4.7; (3) business records pertaining to the subscribers
of each Systems ("Customers"); and (4) all leases, easements and
licenses to use real property and leases of personal property
disclosed on Schedule 1.2. The Assets excludes all other items,
including without limitation, any goodwill, intellectual
property or software.
1.3 Assignment and Assumption. Seller will assign to Purchaser and
Purchaser will assume (1) each of the Telephone Lease and Access
Agreements listed on Schedule 4.7, and (2) liability for
personal property taxes as apportioned pursuant to Section 3.5.
Purchaser's assumption of all obligations and liabilities
described in this Section 1.3 will accrue following Closing (but
not before). Except as expressly provided in this Section 1.3,
Purchaser assumes no liabilities or debts of Seller of any
nature whatsoever.
2. PURCHASE PRICE.
2.1 Purchase Price. The purchase price ("Purchase Price") for the
Assets is $450.00 per Active Customer, which is defined as any
Customer which receives a bill from GST as of the date of
execution of this Agreement. An Active Customer shall not
include a Customer billing at less than $14.35 per month. The
current number of Active Customers is 461. A Promissory Note in
the amount of $207,450.00. Attached hereto as Exhibit 2.1. shall
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