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Asset Purchase Agreement

 

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Title:

Asset Purchase Agreement

Entities:

Nuko Information Systems Inc

Date:

2000

Size:

Preview shows 18KB of 131KB total

Price:

$56

ID:

#1351335

 

 

► Purchase & Sale ► Purchase ► Asset Purchase Agreements

 

 

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                               ASSET PURCHASE AGREEMENT




BY AND BETWEEN



KLA-TENCOR CORPORATION

AND

OBJECTSPACE, INC.









================================================================================
<PAGE>

EXHIBIT 2.1

TABLE OF CONTENTS

<TABLE>
<CAPTION>
<S> <C>
Section Page
------- ----
1. TRANSFER OF ASSETS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

(a) Personal Property. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

(b) Intellectual Property. . . . . . . . . . . . . . . . . . . . . . . . . . . 1

(c) Contracts. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

(d) Prepaid Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

(e) Marketing and Sales Information. . . . . . . . . . . . . . . . . . . . . . 2

(f) Documents. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

(g) Licenses and Permits . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

2. ASSETS EXCLUDED FROM SALE . . . . . . . . . . . . . . . . . . . . . . . . . . 2

3. PURCHASE PRICE. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

(a) Amount of Purchase Price . . . . . . . . . . . . . . . . . . . . . . . . . 4

(b) Manner of Payment of the Purchase Price. . . . . . . . . . . . . . . . . . 4

(c) Allocation of Purchase Price . . . . . . . . . . . . . . . . . . . . . . . 4

4. ASSUMPTION OF LIABILITIES . . . . . . . . . . . . . . . . . . . . . . . . . . 4

(a) Generally. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

(b) Excluded Liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

(c) Limitations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

5. LABOR AND EMPLOYMENT MATTERS. . . . . . . . . . . . . . . . . . . . . . . . . 7

(a) Employment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

(b) Employment Transition Provisions . . . . . . . . . . . . . . . . . . . . . 8

(c) Construction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

6. CLOSING . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

(a) Location and Time. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

(b) Costs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

(c) Seller's Closing Documents . . . . . . . . . . . . . . . . . . . . . . . . 9

(d) Purchaser's Closing Documents. . . . . . . . . . . . . . . . . . . . . . . 10

(e) Further Assurances . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

(f) Prorations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

(g) Purchase Price Escrow . . . . . . . . . . . . . . . . . . . . . . . . . . 12


i
<PAGE>

EXHIBIT 2.1

(h) Working Capital Adjustment . . . . . . . . . . . . . . . . . . . . . . . . 12

(i) Employee Retention Funds . . . . . . . . . . . . . . . . . . . . . . . . . 14

7. REPRESENTATIONS AND WARRANTIES OF SELLER. . . . . . . . . . . . . . . . . . . 14

(a) Organization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

(b) Authorization of Agreement . . . . . . . . . . . . . . . . . . . . . . . . 14

(c) Business Financial Statements. . . . . . . . . . . . . . . . . . . . . . . 15

(d) Tax Matters. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

(e) Actions, Suits, Proceedings. . . . . . . . . . . . . . . . . . . . . . . . 16

(f) Compliance with Applicable Laws and Other Instruments. . . . . . . . . . . 16

(g) Facility Lease . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

(h) Title to the Purchased Assets. . . . . . . . . . . . . . . . . . . . . . . 16

(i) Intellectual Property Rights . . . . . . . . . . . . . . . . . . . . . . . 17

(j) Contracts, Leases, Commitments and Agreements. . . . . . . . . . . . . . . 17

(k) Composition and Condition of Purchased Assets. . . . . . . . . . . . . . . 18

(l) Insurance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

(m) Major Suppliers and Customers. . . . . . . . . . . . . . . . . . . . . . . 18

(n) Employee Plans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

(o) Labor Matters. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

(p) Government License and Regulation. . . . . . . . . . . . . . . . . . . . . 19

(q) Location of the Assets . . . . . . . . . . . . . . . . . . . . . . . . . . 19

(r) Year 2000. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

8. REPRESENTATIONS AND WARRANTIES OF PURCHASER . . . . . . . . . . . . . . . . . 19

(a) Corporate Organization . . . . . . . . . . . . . . . . . . . . . . . . . . 20

(b) Corporate Authority. . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

(c) Litigation and Other Proceedings . . . . . . . . . . . . . . . . . . . . . 20

9. CONDITIONS TO OBLIGATION OF PURCHASER TO CLOSE. . . . . . . . . . . . . . . . . 20

(a) Representations and Warranties . . . . . . . . . . . . . . . . . . . . . . 20

(b) Observance and Performance . . . . . . . . . . . . . . . . . . . . . . . . 21

(c) Violations of Laws and Ordinances. . . . . . . . . . . . . . . . . . . . . 21

(d) Officer's Certificate. . . . . . . . . . . . . . . . . . . . . . . . . . . 21

(e) Change in Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21


ii
<PAGE>

EXHIBIT 2.1

(f) Key Employees. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21

(g) Searches . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21

(h) Consents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21

(i) Closing Documents. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22

(j) Proceedings and Documents. . . . . . . . . . . . . . . . . . . . . . . . . 22

(k) Hiring of Employees. . . . . . . . . . . . . . . . . . . . . . . . . . . . 22

10. CONDITIONS TO OBLIGATION OF SELLER TO CLOSE . . . . . . . . . . . . . . . . . 22

(a) Representations and Warranties . . . . . . . . . . . . . . . . . . . . . . 22

(b) Observance and Performance . . . . . . . . . . . . . . . . . . . . . . . . 22

(c) Violations of Laws and Ordinances. . . . . . . . . . . . . . . . . . . . . 22

(d) Officer's Certificate. . . . . . . . . . . . . . . . . . . . . . . . . . . 22

(e) Closing Documents. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23

(f) Proceedings and Documents. . . . . . . . . . . . . . . . . . . . . . . . . 23

(g) Purchase Order . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23

11. GOVERNMENTAL FILINGS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23

12. COVENANTS OF SELLER . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23

(a) Operation of Business Prior to Closing . . . . . . . . . . . . . . . . . . 23

(b) Notices to Employees; Continuation of Benefits . . . . . . . . . . . . . . 24

(c) Access and Information . . . . . . . . . . . . . . . . . . . . . . . . . . 24

(d) Public Announcements . . . . . . . . . . . . . . . . . . . . . . . . . . . 25

(e) Notice of Changes. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25

(f) Transfer Taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25

(g) No Solicitations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25

(h) Further Actions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26

(i) Covenant not to Sue. . . . . . . . . . . . . . . . . . . . . . . . . . . . 26

13. COVENANT NOT TO COMPETE . . . . . . . . . . . . . . . . . . . . . . . . . . . 26

14. COVENANTS OF PURCHASER. . . . . . . . . . . . . . . . . . . . . . . . . . . . 27

(a) Public Announcements . . . . . . . . . . . . . . . . . . . . . . . . . . . 27

(b) Notice of Change . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27

(c) Further Actions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27

(d) Use of Names . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27


iii
<PAGE>

EXHIBIT 2.1

15. INDEMNIFICATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27

(a) Survival of Representations and Warranties . . . . . . . . . . . . . . . . 28

(b) Indemnification by Seller. . . . . . . . . . . . . . . . . . . . . . . . . 28

(c) Indemnification by Purchaser . . . . . . . . . . . . . . . . . . . . . . . 29

(d) Procedures for Indemnification . . . . . . . . . . . . . . . . . . . . . . 29

(e) Sole Remedy. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30

16. TERMINATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30

17. DISPUTE RESOLUTION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32

(a) Arbitration. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32

(b) Discovery. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32

(c) Court Proceedings. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32

(d) Rulings. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33

(e) Findings of Fact . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33

(f) Authority. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33

(g) Equitable Remedies . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33

(h) Selection of Arbitrator. . . . . . . . . . . . . . . . . . . . . . . . . . 33

(i) Other Arbitration Provisions . . . . . . . . . . . . . . . . . . . . . . . 34

18. ADDITIONAL AGREEMENTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34

(a) Confidential Information . . . . . . . . . . . . . . . . . . . . . . . . . 34

(b) Transition Services. . . . . . . . . . . . . . . . . . . . . . . . . . . . 35

19. MISCELLANEOUS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35

(a) Amendments and Waiver. . . . . . . . . . . . . . . . . . . . . . . . . . . 35

(b) Governing Law. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36

(c) Notices. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36

(d) Benefit. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37

(e) Entire Agreement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37

(f) Definitions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37

(g) Brokers. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37

(h) Disclosure Schedule. . . . . . . . . . . . . . . . . . . . . . . . . . . . 37

(i) Counterparts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37
</TABLE>

iv
<PAGE>

EXHIBIT 2.1

ASSET PURCHASE AGREEMENT


THIS ASSET PURCHASE AGREEMENT (the "AGREEMENT") is made and entered into as
of this 8th day of March, 2000 by and between KLA-Tencor Corporation, a
Delaware corporation ("PURCHASER"), and OBJECTSPACE, INC., a Delaware
corporation ("SELLER").

RECITALS

A. Seller is engaged, among other things, in the business of providing
software products and services in the area of electronics manufacturing yield
and productivity improvement through development, application, and support of
factory monitoring and control software solutions (collectively, the
"BUSINESS").

B. Seller desires to sell to Purchaser and Purchaser desires to purchase
and acquire from Seller the Purchased Assets (as hereinafter defined) relating
to the Business and Purchaser desires to assume, as part of the purchase price
of the Purchased Assets, the Assumed Liabilities (as hereinafter defined) as of
the Closing Date (as hereinafter defined), all upon the terms and conditions set
forth herein.

AGREEMENTS

NOW, THEREFORE, in consideration of the foregoing recitals and the mutual
covenants and agreements contained herein, the parties agree as follows:

1. TRANSFER OF ASSETS. On the terms and subject to the conditions of
this Agreement, Seller agrees to sell, transfer, convey, deliver and assign to
Purchaser, and Purchaser agrees to purchase, acquire and accept from Seller, at
and effective as of the Closing Date, for the consideration hereinafter
provided, all of Seller's rights, title and interest in and to the following
assets, properties and rights in and related to the Business, other than the
Excluded Assets (as hereinafter defined) (the "PURCHASED ASSETS"):

(a) PERSONAL PROPERTY. All machinery, equipment, computer hardware,
cabling, data viewers, improvements, tools, furniture, furnishings and
other tangible personal property listed on SCHEDULE 1(A) hereto.

(b) INTELLECTUAL PROPERTY. All of Seller's rights in the trademarks,
trade secrets, copyrights (including those in software), patents, pending
patent applications, and other intellectual property, and all associated
goodwill, and all related applications and registrations for the foregoing
(collectively, the "INTELLECTUAL PROPERTY") that are listed on
SCHEDULE 1(b) attached hereto.

<PAGE>

EXHIBIT 2.1

(c) CONTRACTS. To the extent the consents listed on the Disclosure
Schedule to Section 7(j) have been obtained, all rights of Seller under the
contracts, agreements, personal property leases, licenses, purchase orders,
sales orders and other instruments, agreements and arrangements that are
listed on SCHEDULE 1(c) (hereinafter collectively referred to as the
"ASSUMED CONTRACTS").

(d) PREPAID ASSETS. All deposits or other prepaid items relating to
services or products provided by the Business and accepted by Seller prior
to the Closing (as hereinafter defined) but to be delivered by Purchaser on
or subsequent to the Closing that are listed on SCHEDULE 1(d), as such may
be amended by mutual agreement of the parties up to the Closing.

(e) MARKETING AND SALES INFORMATION. All customer lists, vendor or
supplier lists, prospect lists, database information, marketing or

 

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