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Title: |
Asset Purchase Agreement |
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Entities: |
Morgan Stanley & Co. Inc.; MTI Technology Corp.; Silicon Valley Bank; Morrison & Foerster |
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Date: |
2006 |
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Size: |
Preview shows 19KB of 214KB total |
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Price: |
$85 |
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ID: |
#2187233 |
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EXECUTION VERSION
ASSET PURCHASE AGREEMENT
BY AND BETWEEN
MTI TECHNOLOGY CORPORATION,
A DELAWARE CORPORATION,
PURCHASER
AND
COLLECTIVE TECHNOLOGIES, LLC,
A DELAWARE LIMITED LIABILITY COMPANY,
SELLER
Dated June 6, 2006
Morrison & Foerster LLP
19900 MacArthur Boulevard
Irvine, California 92612
{PAGE}
TABLE OF CONTENTS
{TABLE}
{CAPTION}
PAGE
----
{S} {C}
ARTICLE 1. THE TRANSACTION.............................................. 1
1.1 Purchased Assets................................................ 1
1.2 Excluded Assets................................................. 3
1.3 Assumed Liabilities............................................. 3
1.4 Excluded Liabilities............................................ 4
1.5 Non-Assignable Assets........................................... 5
ARTICLE 2. CONSIDERATION FOR TRANSFER................................... 6
2.1 Purchase Price.................................................. 6
2.2 Purchase Price Adjustments...................................... 7
2.3 Allocation of Purchase Price.................................... 8
2.4 Transfer Taxes; Prorations...................................... 9
ARTICLE 3. CLOSING AND CLOSING DELIVERIES............................... 9
3.1 Closing; Time and Place......................................... 9
3.2 Deliveries by Seller............................................ 9
3.3 Deliveries by Purchaser......................................... 10
3.4 Delivery by Purchaser and Seller................................ 11
ARTICLE 4. REPRESENTATIONS AND WARRANTIES OF SELLER..................... 11
4.1 Organization, Good Standing, Qualification...................... 11
4.2 Charter Documents; Books and Records............................ 12
4.3 Capitalization.................................................. 12
4.4 Authority; Binding Nature of Agreements......................... 12
4.5 No Conflicts; Required Consents................................. 12
4.6 Subsidiaries.................................................... 13
4.7 Financial Statements............................................ 13
4.8 Absence of Undisclosed Liabilities.............................. 13
4.9 Absence of Changes.............................................. 13
4.10 Transactions with Affiliates.................................... 14
4.11 Account Receivables............................................. 14
4.12 Inventory....................................................... 14
4.13 Material Contracts.............................................. 14
4.14 Title; Sufficiency; Condition of Assets......................... 17
4.15 Real Property Leases............................................ 17
4.16 Intellectual Property........................................... 17
4.17 Customers, Distributors and Suppliers........................... 19
4.18 Seller Products, Services and Warranty.......................... 21
4.19 Employees and Consultants....................................... 21
4.20 Seller Benefit Plans............................................ 22
4.21 Compliance with Laws............................................ 22
4.22 Governmental Approvals.......................................... 23
4.23 Proceedings and Orders.......................................... 23
{/TABLE}
i
{PAGE}
TABLE OF CONTENTS
(Continued)
{TABLE}
{CAPTION}
PAGE
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{S} {C}
4.24 Environmental Matters.............................................. 23
4.25 Taxes.............................................................. 24
4.26 Brokers............................................................ 25
4.27 No Other Agreement................................................. 25
4.28 No Other Representations and Warranties............................ 25
4.29 Private Placement.................................................. 25
ARTICLE 5. REPRESENTATIONS AND WARRANTIES OF PURCHASER..................... 27
5.1 Organization and Good Standing..................................... 27
5.2 Authority; Binding Nature of Agreements............................ 27
5.3 No Conflicts; Required Consents.................................... 28
5.4 Brokers............................................................ 28
5.5 SEC Filings, Financial Statements.................................. 28
5.6 Shares............................................................. 28
ARTICLE 6. PRE-CLOSING COVENANTS........................................... 29
6.1 Seller's Conduct of the Business Prior to Closing.................. 29
6.2 Restrictions on Seller's Conduct of the Business Prior to Closing.. 29
6.3 No Solicitation.................................................... 31
6.4 Certain Notifications.............................................. 32
6.5 Updating the Disclosure Schedules.................................. 32
6.6 Access to Information.............................................. 33
6.7 Best Efforts....................................................... 33
6.8 Consents........................................................... 33
6.9 Indemnity.......................................................... 33
ARTICLE 7. POST CLOSING COVENANTS.......................................... 34
7.1 Seller Intellectual Property....................................... 34
7.2 Cooperation........................................................ 34
7.3 Change of Corporate Name........................................... 35
7.4 Records and Documents.............................................. 35
7.5 Collection of Receivables.......................................... 35
7.6 Noncompetition Agreement........................................... 36
7.7 Nondisclosure...................................................... 37
7.8 Listing of Shares.................................................. 38
ARTICLE 8. EMPLOYEES....................................................... 38
8.1 Transferred Employees.............................................. 38
8.2 Employee Benefit Arrangements...................................... 38
8.3 Post-Closing Employee Benefits..................................... 38
8.4 Compliance with Legal Requirements and Other Obligations........... 39
8.5 No Benefit to Seller Employees Intended............................ 39
ARTICLE 9. CONDITIONS TO CLOSING........................................... 40
{/TABLE}
ii
{PAGE}
TABLE OF CONTENTS
(Continued)
{TABLE}
{CAPTION}
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{S} {C}
9.1 Conditions to Purchaser's Obligation to Close................... 40
9.2 Conditions to Seller's Obligation to Close...................... 41
9.3 Conditions to Obligations of Each Party to Close................ 41
ARTICLE 10. TERMINATION.................................................. 42
10.1 Circumstances for Termination................................... 42
10.2 Effect of Termination........................................... 42
10.3 Fees for Termination............................................ 42
ARTICLE 11. INDEMNIFICATION.............................................. 43
11.1 Survival of Representations and Warranties...................... 43
11.2 Indemnification by Seller....................................... 43
11.3 Indemnification by Purchaser.................................... 43
11.4 Procedures for Indemnification.................................. 43
11.5 Limitations on Indemnification.................................. 45
11.6 Sole Remedy..................................................... 46
11.7 Set Off......................................................... 46
ARTICLE 12. MISCELLANEOUS PROVISIONS..................................... 46
12.1 Expenses........................................................ 46
12.2 Further Assurances.............................................. 46
12.3 Amendments and Waivers.......................................... 46
12.4 Notices......................................................... 46
12.5 Governing Law................................................... 47
12.6 Dispute Resolution.............................................. 47
12.7 Exhibits and Schedules.......................................... 48
12.8 Assignments Prohibited; Successors and Assigns.................. 48
12.9 No Third-Party Beneficiaries.................................... 48
12.10 Counterparts.................................................... 48
12.11 Entire Agreement................................................ 48
12.12 Interpretation.................................................. 48
12.13 Number of Days.................................................. 49
12.14 Construction.................................................... 49
12.15 Provisional Relief; Specific Performance........................ 49
12.16 Recovery of Fees by Prevailing Party............................ 49
12.17 Disclosure Letter............................................... 50
12.18 Time of the Essence............................................. 50
12.19 Confidentiality; Publicity...................................... 50
12.20 Cumulative Remedies............................................. 50
12.21 Liquidated Damages.............................................. 50
12.22 Corporate Securities Law........................................ 51
{/TABLE}
iii
{PAGE}
EXHIBITS, SCHEDULES AND APPENDICES
Exhibits
{TABLE}
{S} {C}
Exhibit A Certain Definitions
Exhibit 2.1(a)(ii) Promissory Note
Exhibit 2.1(a)(iv) Warrant
Exhibit 3.2(a) General Assignment and Bill of Sale
Exhibit 3.2(b) Assignment and Assumption
Exhibit 3.2(e) Lock-Up Agreement
Exhibit 3.2(f) Employment Agreements
Exhibit 3.4 Registration Rights Agreement
Exhibit 6.9 Indemnification Agreements
Exhibit 7.1 Acknowledgments of License
Exhibit 9.1(d) Estoppel Letters
Exhibit 9.1(e) Opinion of Seller's Counsel
Exhibit 9.2(e) Opinion of Purchaser's Counsel
{/TABLE}
Schedules
{TABLE}
{S} {C}
Schedule 1.1(a) Receivables
Schedule 1.1(b) Inventory
Schedule 1.1(c) Machinery and Equipment
Schedule 1.1(d) Owned and Leased Vehicles
Schedule 1.1(e) Personal Property
Schedule 1.1(f) Leased Real Property
Schedule 1.1(g) Personal Property Leases
Schedule 1.1(h) Intellectual Property
Schedule 1.1(i) Deposits and Advances
Schedule 1.1(j) Rebates and Credits
Schedule 1.1(k) Seller Contracts
Schedule 1.1(l) Governmental Approvals
Schedule 1.1(m) Claims
Schedule 1.2(e) Excluded Personal Property
Schedule 1.3 Assumed Liabilities
Schedule 4 Seller Disclosure Schedule
Schedule 5 Purchaser Disclosure Schedule
Schedule 8.1 Transferred Employees
Schedule 8.3(b) Restricted Stock and Option Issuances
{/TABLE}
i
{PAGE}
ASSET PURCHASE AGREEMENT
THIS ASSET PURCHASE AGREEMENT (the "Agreement") is made and entered into
this sixth day of June, 2006, by and between MTI Technology Corporation, a
Delaware corporation (the "Purchaser"), and Collective Technologies, LLC, a
Delaware limited liability company (the "Seller"). Certain capitalized terms
used in this Agreement are defined on Exhibit A hereto.
RECITALS
WHEREAS, Seller is engaged in IT infrastructure services, including
architectural consulting, system implementation and staff augmentation (the
"Business"); and
WHEREAS, Purchaser desires to purchase from Seller and Seller desires to
sell to Purchaser substantially all of the assets, properties, rights and claims
of, or related to, the Business on the terms and conditions set forth herein.
NOW, THEREFORE, in consideration of the foregoing recitals and the mutual
representations, warranties, covenants and promises contained herein, the
adequacy and sufficiency of which are hereby acknowledged, the parties hereto
agree as follows:
AGREEMENT
ARTICLE 1. THE TRANSACTION
1.1 PURCHASED ASSETS. Subject to the terms and conditions of this
Agreement, at the Closing, Seller shall sell, transfer, convey, assign, grant
and deliver to Purchaser, and Purchaser shall purchase from Seller, all of
Seller's right, title and interest in, to and under the assets, properties,
goodwill and rights of Seller of every nature, kind and description, tangible
and intangible, wherever located, whether or not carried on the books of Seller
(other than the Excluded Assets) (collectively, the "Purchased Assets"),
including the following:
(a) Receivables. Other than amounts owed under the Accenture
Agreements (as defined below), all accounts and notes receivable, negotiable
instruments and chattel papers (the "Receivables"), including the Receivables
listed on Schedule 1.1(a);
(b) Inventory. All inventory of Seller products and its components,
wherever located and whether held by Seller or third parties, including all raw
materials, work in process, samples, packaging, supplies, service parts,
purchased parts and goods and the finished goods listed on Schedule 1.1(b)
(collectively, the "Inventory") and any and all rights to market and sell all
such Inventory;
(c) Machinery and Equipment. All tools, dies, jigs, molds, patterns,
machinery and equipment (including manufacturing assembly and test equipment),
wherever located and whether held by Seller or third parties (the "Machinery and
Equipment"), including the Machinery and Equipment listed on Schedule 1.1(c);
1
{PAGE}
(d) Owned and Leased Vehicles. All vehicles owned by Seller and all
rights in, to and under vehicle leases to which Seller is a party (collectively,
the "Owned and Leased Vehicles"), including the Owned and Leased Vehicles listed
on Schedule 1.1(d);
(e) Personal Property. All personal property, office furnishings and
furniture, display racks, shelves, decorations, supplies and other tangible
personal property (the "Personal Property"), including the Personal Property
listed on Schedule 1.1(e);
(f) Leased Real Property. All rights in, to and under the real
estate leases listed on Schedule 1.1(f) (the "Real Property Leases"), together
with all of Seller's right, title and interest in and to all land, buildings,
structures, easements, appurtenances, improvements (including construction in
progress) and fixtures located thereon (the "Leased Real Property");
(g) Personal Property Leases. All rights in, to and under leases of
personal property to which Seller is a party (the "Personal Property Leases"),
including the Personal Property Leases listed on Schedule 1.1(g);
(h) Intellectual Property. All Seller Intellectual Property,
including the Seller Intellectual Property listed on Schedule 1.1(h);
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