Asset Sale and Purchase Agreement between ICCE Technologies, Inc. and Emergent Information Technologies, Inc.
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This agreement, dated March 23, 2001, is between ICCE Technologies, Inc. (Buyer) and Emergent Information Technologies, Inc. (Seller). The Seller agrees to sell, and the Buyer agrees to purchase, all assets related to the ICCE software business, including intellectual property and equipment, for $150,000 and future royalties. The Buyer will pay $100,000 at closing, $50,000 in installments, and a 4% royalty on software licensing fees for five years. The agreement outlines payment terms, asset transfer conditions, and tax responsibilities for both parties.
EX-10.17 4 a75016ex10-17.txt EXHIBIT 10.17 1 EXHIBIT 10.17 ASSET SALE AND PURCHASE AGREEMENT This Asset Sale and Purchase Agreement (this "Agreement") is made and entered into as of the 23rd day of March 2001, by and between ICCE TECHNOLOGIES, INC., a Colorado corporation (hereinafter referred to as "Buyer"), and EMERGENT INFORMATION TECHNOLOGIES, INC., a California Corporation (hereinafter referred to as "Seller"). RECITALS A. Seller owns certain tangible and intangible assets referred to as the Integrated Control Center Environment ("ICCE") software used in the research, development, testing, demonstration, sales, promotion and support of the ICCE software and product related services (the "ICCE Business"). B. Seller desires to sell all of its right, title and interest in and to all of the assets directly related to and necessary for the ICCE Business. C. Buyer desires to purchase the assets directly related to and necessary for the ICCE Business of Seller. TERMS OF AGREEMENT SECTION 1. PURCHASE AND SALE OF ASSETS 1.1. Assets Being Purchased. Subject to the contingencies described in Sections 6 and 7 hereof, Seller hereby agrees to sell to Buyer, and Buyer hereby agrees to purchase from Seller, on all of the terms and conditions specified in this Agreement, all the right, title, and interest of Seller in and to all of those assets (the "Assets") of Seller, or subsidiaries of Seller, which are used in connection with the ICCE Business, including, but not limited to, all inventories, equipment and personal property, intellectual property (including computer software, trademarks, trade names, service marks, patents, etc.), customer and supplier lists, agreements and licenses relating to the ICCE Business, if any. The Assets include but are not limited to all those assets described on the schedule attached hereto, marked Schedule 1.1 (Assets), and incorporated herein by this reference, together with any replacements and additions of or to any of those assets made between the date of this Agreement and the Closing Date (as defined in Section 8 below); and all other reasonable supplies and materials, equipment, fixtures, copyrights, service marks, trademarks, trade names, trade secrets, patents, patent applications, licenses, (except that it is not intended that Seller will transfer to Buyer any cash, bank accounts or accounts receivable); as well as any assets of Seller which it was using exclusively for the ICCE Business that have been inadvertently or mistakenly left off of Schedule 1.1 but which later are mutually determined should have been included on that Schedule because of their exclusive use as a part of the ICCE Business. It is understood that the physical assets listed in Schedule 1.1 will be delivered to Buyer "as is" and Buyer will pay all costs of transporting the equipment from such equipment's present location to Buyer's location. Page 1 2 1.2. SALE AND PURCHASE. On the Closing Date, subject to the contingencies described in Sections 6 and 7 hereof, and in reliance upon the representations, warranties and agreements of the parties, Seller shall sell, assign, transfer, convey and deliver to Buyer, and Buyer shall buy from Seller, free and clear of all encumbrances (except as permitted under this Agreement), the Assets, all for the price and upon the terms and conditions set forth in this Agreement. 1.3. INSTRUMENTS OF TRANSFER. The sale, assignment, transfer and conveyance of the Assets shall be made by delivery by Seller to Purchaser of such bills of sale and other instruments of assignment, transfer and conveyance as Buyer shall reasonably require. 1.4. CONSIDERATION FROM BUYER AT CLOSING. As payment for the transfer of the Assets, Buyer shall pay Seller $150,000.00 (the "Purchase Price") and future royalties, both as agreed in this Section. 1.4.1. CASH PURCHASE PRICE. Buyer shall deliver to Seller at the Closing (as defined in Section 8 below) in accordance with the provisions of Section 8 hereof, One Hundred Thousand Dollars ($100,000.00) by bank cashier's check payable to the order of Seller (the "Closing Date Payment"). Additionally, Buyer shall pay Seller Ten Thousand Dollars ($10,000.00) by bank check in immediately available funds payable to the order of Seller on the first day of the first full month which occurs no less than thirty days following the Closing and Ten Thousand Dollars ($10,000.00) by bank check in immediately available funds payable to the order of Seller on the first day of each of the subsequent four months, which payments will total Fifty Thousand Dollars ($50,000.00). 1.4.2. ROYALTIES. Buyer agrees to pay Seller a four percent (4.0%) royalty on all initial ICCE software licensing fees received by Buyer during the first sixty (60) months following the Closing (the "Royalty Period"). The royalty payment will be made quarterly on the thirtieth (30) day following the end of each calendar quarter beginning with the quarter ending June 30, 2001. Buyer shall maintain complete and accurate records in connection with the licensing related to the ICCE software during the Royalty Period. Seller shall have the right, at its own expense, upon reasonable prior notice, to inspect and audit the records of Buyer relating to license of the ICCE software, provided that the Seller shall not conduct such audit and inspection more than once during any calendar year, and that Seller shall not reaudit previous periods that have already been audited. If such inspection and audit reveals that Buyer has underpaid Seller with respect to any amounts due and payable during the period to which such inspection and audit relate exceeding 5% of the total amounts due and payable by Buyer during such period, Buyer shall pay Seller all amounts which were underpaid, plus interest on such underpaid amounts at a rate of 10% per annum. If the parties dispute such amounts, the chief financial officer of Seller and the chief financial officer of Buyer, or their respective designees shall meet and attempt to reconcile such differences and make a final determination within thirty (30) days from the initial delivery of the statement. If the officers do not reach agreement within such time, each party may appoint an independent accountant at its own expense and such appointed accountants shall review the records and make a joint determination as to the amounts owed. Page 2 3 1.4.2.1. ICCE SOFTWARE. For purposes of this Agreement, the ICCE software referred to herein shall be defined as the source code of the ICCE software as of the Closing Date, and additional development, engineering and upgrades that occur to the ICCE software during the Royalty Period. The ICCE software does not include other licensable software or technologies that may be added to or integrated with the ICCE software after the Closing Date. 1.5. ALLOCATION OF PURCHASE PRICE. The parties have agreed, after arm's length negotiations, to allocate the Purchase Price among the Assets and the Covenant Not To Compete (as described in Paragraph 2.1 below) on the basis set forth in Schedule 1.5 (Allocation of Purchase Price), attached hereto and incorporated herein by this reference. In accordance with such Schedule 1.5, Buyer shall prepare for filing with the Internal Revenue Service, and Seller shall approve, a Form 8594 which Buyer shall file within one hundred twenty (120) days after the Closing Date. 1.6. PAYMENT OF TAXES RELATED TO PROPERTY. Seller shall pay all sales taxes arising from the transfer of the Assets. Seller and Purchaser shall each pay one-half (1/2) of all use taxes arising from the transfer of the Assets. Seller shall be responsible for all state and local real and personal property taxes with regard to the ICCE Business which are attributable to the Assets prior to the Closing Date. Buyer shall not be responsible for any business, occupation, withholding or similar tax, or any taxes of any kind related to any period before the Closing Date. Seller shall not be responsible for any business, occupation, withholding or similar tax, or any taxes of any kind related to any period on or after the Closing Date. SECTION 2. SELLER'S COVENANT NOT TO COMPETE 2.1. COVENANT NOT TO COMPETE. In consideration of the payment of the price as allocated pursuant to Paragraph 1.5 above, Seller shall not, for a period beginning on the Closing Date and ending five (5) years following the Closing Date, directly or indirectly, for itself or on behalf of any other person, persons, company, partnership, corporation or business of whatever nature: 2.1.1. Engage whether as a contractor, consultant or adviser, or as a sales representative, in any business selling any products or services in direct competition with Buyer as relates to the ICCE software, in the United States or any other country in which Buyer, any of its subsidiaries or any of its strategic partners is conducting business within eighteen (18) months following the Closing Date (the "Territory"); 2.1.2. Call upon any person who is an employee of Buyer as such employment relates to the ICCE software for the purpose or with the intent of enticing such employee away from or out of the employ of Buyer; or 2.1.3. Call upon any person who is, or entity that is, a customer of Buyer as relates to the ICCE Business within the Territory for the purpose of soliciting or selling products or services in competition with Buyer as relates to the ICCE software within the Territory. Page 3 4 SECTION 3. REPRESENTATIONS AND WARRANTIES BY SELLER Seller hereby represents and warrants to, and agrees with, Buyer as follows. 3.1. TITLE TO ASSETS. Seller has good and marketable title to all of the Assets. At the Closing, Seller's title to each of the Assets shall be free and clear of all security interests, liens, pledges, claims, charges, escrows, encumbrances, options, rights of first refusal, mortgages, indentures, easements, licenses, security agreements or other agreements, arrangements, contracts, commitments, understandings or obligations or other defects (collectively, the "Encumbrances"), except (i) liens for current taxes not yet due and payable or which are being contested in good faith by appropriate proceedings and (ii) Encumbrances which the Buyer expressly agrees to assume as shown on Schedule 3.1 (Encumbrances To Be Assumed), attached hereto and incorporated herein by this reference. 3.2. AUTHORITY TO SELL. Seller has complied with all the requirements of any applicable laws relative to the sale of the Assets, and prior to the Closing, all of the consents and approvals that may be required by law or by any agreements to which Seller is a party will be obtained. 3.3. DEFAULTS AND VIOLATIONS. This Agreement, and the purchase and sale to be consummated pursuant hereto, will not create or cause a default or material violation of any material contract, agreement, lease or other instrument to which Seller is a party. 3.4. LITIGATION. Except as set forth in Schedule 3.4 (Pending Actions), attached hereto and incorporated herein by this reference, there are no actions, suits, claims, investigations, or legal, administrative or arbitration proceedings pending or, to the knowledge of Seller, threatened against Seller relating to the Assets whether at law or in equity, or before or by any federal, state, municipal or other governmental instrumentality which would, if determined adversely, have a material adverse effect on the Assets. 3.5. ORGANIZATION, STANDING AND POWER. Seller is a corporation duly organized, validly existing and in good standing under the laws of the State of California and is qualified to transact business in and is in good standing in the State of Colorado. Seller has all requisite corporate power and authority to own, lease and operate the Assets and to execute and deliver and perform this Agreement and all writings relating hereto. 3.6. AUTHORIZATION OF SELLER. The Board of Directors of Seller has duly and validly authorized the execution, delivery and performance of this Agreement and all writings relating hereto by Seller, and all authorizations required of its shareholders, if any, have also been validly obtained. This Agreement and all writings relating hereto to be signed by Seller constitute valid and binding obligations of Seller, enforceable in accordance with their respective terms. 3.6.1. Neither the execution and delivery of this Agreement and all documents relating to this Agreement, nor the consummation by Seller of the transactions contemplated by this Agreement, nor compliance with any of the provisions of this Agreement will: Page 4 5 3.6.1.1. Conflict with or result in a breach of the Certificate (or Articles) of Incorporation (or amendments, if any) or Bylaws (or amendments, if any) of Seller; 3.6.1.2. Violate any statute, law, rule or regulation or any order, writ, injunction or decree of any court or governmental authority; or 3.6.1.3. No consent or approval of or notification to any governmental authority is required in connection with the execution and delivery by Seller of this Agreement or any writing relating hereto or the consummation of the transactions contemplated hereby or thereby. 3.7. Intellectual Property. 3.7.1. SELLER'S INTELLECTUAL PROPERTY. Schedule 3.7.1 (Intellectual Property) sets forth a list of each patent, trademark, service mark, trade name, copyright, trade secret or other item of intellectual property, including any and all registrations and applications therefore, which are owned by Seller with respect to the ICCE software. In each case, the registration number, date of issuance or registration, and a brief description of such property is set forth in Schedule 3.7.1. The property referenced in Schedule 3.7.1, together with all designs, methods, inventions and know-how related thereto and all trademarks, trade names, service marks, and copyrights claimed or used by the Seller which have not been registered is hereinafter referred to as the "Seller's Intellectual Property." 3.7.2. LICENSES AND RIGHTS GRANTED BY THE SELLER. Schedule 3.7.2 (Licenses to Intellectual Property) lists any and all licenses, purchase options or other interests held by any individual or entity in Seller's Intellectual Property. All of such licenses are in full force and effect and constitute legal, valid and binding obligations of the respective parties thereto; to the knowledge of Seller, there have not been and there currently are not any material defaults thereunder by any party; and no event has occurred which (whether with or without notice, lapse of time or the happening or occurrence of any other event) would constitute a material default thereunder. The validity, continuation and effectiveness of all such licenses under the current material terms thereof will in no way be affected by the transfer of such licenses to Buyer under this Agreement, or Seller shall obtain a consent to the transfer to Buyer prior to the Closing. Page 5 6 3.7.3. INTELLECTUAL PROPERTY RIGHTS AND INTERESTS. Seller has taken all reasonably necessary steps required under applicable law to protect its trade secrets and its copyrights. Seller owns or has valid rights to use Seller's Intellectual Property and the Licensed Intellectual Property without conflict with the rights of others. To the knowledge of Seller, no person, corporation, or government entity claims, or has any right to claim, that any of Seller's Intellectual Property was created other than as a "work made for hire" as that term is defined in the Copyright Act of 1976, on Seller's behalf. No person, corporation, or government entity has made or, to the knowledge of Seller, threatened to make any claim that Seller's use and sale of Seller's Intellectual Property is in violation of any license held by Seller or infringes any proprietary right or interest of any third party. To the knowledge of Seller, no third party is infringing upon any of the Seller's Intellectual Property or is in violation of any license to use Seller's Intellectual Property granted by Seller. Seller holds Seller's Intellectual Property free and clear of all Liens. 3.7.4. To the knowledge of Seller, neither the execution or delivery of this Agreement by Seller will conflict with or result in a breach of the terms, conditions or provisions of, or constitute a default under, any contract, covenant or instrument under which the Seller is now obligated. To Seller's knowledge, Seller does not utilize or believe that it will be necessary to utilize any inventions, trade secrets, or proprietary information of the Seller. 3.8. AGREEMENTS, ETC. Schedule 3.8 (Agreements, Etc.), attached hereto and incorporated herein by this reference, contains a list and brief description of all material written contracts, agreements and other instruments related to the ICCE software and not listed on another Schedule hereto, including, by way of example, any of the following: 3.8.1. Sale, advertising, agency, or similar contracts or any other contract relating to the payment of a commission; 3.8.2. Agreement which restricts Seller in any way with regard to the Assets; or 3.8.3. Agreement or arrangement for the sale of any of the Assets or requiring the consent of any party to the transfer and assignment of such assets, property and rights. 3.8.4. Seller has in all material respects performed all the obligations required to be performed by it to date and is not in default or alleged to be in default in any respect under any agreement, lease, contract, commitment, instrument or obligation required to be listed on any Schedule to this Agreement, and there exists no event, condition or occurrence which, after notice or lapse of time, or both, would constitute such a default by it of any of the foregoing. 3.9. DISCLOSURES. No representation or warranty by Seller contained in this Agreement, and no statement contained in any certificate, Schedule, Exhibit, list or other writing furnished to Buyer in connection with this transaction, contains any untrue statement of a material fact or omits a material fact necessary in order to make the statements contained herein or therein not misleading. To the knowledge of Seller, all copies of all writings furnished to the Buyer hereunder or in connection with the transactions contemplated hereby are true and complete. To the knowledge of Seller, all Schedules and Exhibits to this Agreement are true and complete. Page 6 7 3.10. NO BANKRUPTCY OR INSOLVENCY. Seller has not filed any voluntary petition in bankruptcy or been adjudicated a bankrupt or insolvent, filed any petition or answer seeking any reorganization, liquidation, dissolution or similar relief under any federal bankruptcy, insolvency, or other debtor relief law, or sought or consented to or acquiesced in the appointment of any trustee, receiver, conservator or liquidator of all or any substantial part of its properties. No court of competent jurisdiction has entered an order, judgment or decree approving a petition filed against Seller seeking any reorganization, arrangement, composition, readjustment, liquidation, dissolution or similar relief under any federal bankruptcy act, or other debtor relief law, and no other liquidator has been appointed of Seller or of all or any substantial part of its properties. 3.11. RELINQUISHMENT OF INTELLECTUAL PROPERTY. Immediately following the Closing Date, Seller represents and warrants to Buyer that it shall relinquish the use of Seller's Intellectual Property, as relates to the ICCE software, by all appropriate acts and filings as may be required with the necessary federal, state and local authorities, and to acknowledge that Seller has no rights, as relates to the ICCE software, with respect to the use and exploitation of Seller's Intellectual Property. SECTION 4. REPRESENTATIONS, WARRANTIES AND CERTAIN AGREEMENTS OF BUYER Buyer hereby represents and warrants to and agrees with Seller as follows. 4.1. ORGANIZATION, STANDING AND POWER. Buyer is a corporation duly organized, validly existing and in good standing under the laws of the State of Colorado. Buyer has all requisite corporate power and authority to execute, deliver and perform this Agreement and all writings relating hereto. 4.2. AUTHORITY TO PURCHASE. The Board of Directors of Buyer has duly and validly authorized the execution, delivery and performance of this Agreement and all writings relating hereto by Buyer, and all authorizations required of its shareholders, if any, have also been validly obtained. This Agreement and all writings relating hereto to be signed by Buyer constitute valid and binding obligations of Buyer, enforceable in accordance with their respective terms. 4.2.1. Neither the execution and delivery of this Agreement and all documents relating to this Agreement, nor the consummation by Buyer of the transactions contemplated by this Agreement, nor compliance with any of the provisions of this Agreement will: 4.2.1.1. Conflict with or result in a breach of the Articles of Incorporation or Bylaws of Buyer; 4.2.1.2. Violate any statute, law, rule or regulation or any order, writ, injunction or decree of any court or governmental authority; or Page 7 8 4.2.1.3. Violate or conflict with, or constitute a default under (or give rise to any right of termination, cancellation or acceleration under), any material agreement or writing of any nature to which Buyer is a party. No consent or approval of, or notification to, any governmental authority is required in connection with the execution and delivery by Buyer of this Agreement or any writing relating hereto or the consummation of the transactions contemplated hereby or thereby. 4.3. DISCLOSURES. No representation or warranty by Buyer contained in this Agreement, and no statement contained in any certificate or other writing furnished to Seller in connection with this transaction, contains any untrue statement of a material fact or omits a material fact necessary in order to make the statements contained herein or therein not misleading. SECTION 5. [INTENTIONALLY OMITTED.] SECTION 6. CONDITIONS PRECEDENT TO BUYER'S PERFORMANCE 6.1. CONDITIONS PRECEDENT OF OBLIGATIONS OF BUYER. The obligations of Buyer to perform this Agreement are subject to and conditioned upon the satisfaction of the following conditions on or prior to the Closing Date, unless waived in writing by the Buyer, and Seller shall use its best efforts to cause such conditions to be fulfilled: 6.1.1. REPRESENTATIONS AND WARRANTIES. The representations and warranties of the Seller in this Agreement or in any Schedule, Exhibit, certificate or document delivered in connection herewith shall be true and correct on the Closing Date. 6.1.2. PERFORMANCE OF OBLIGATIONS OF SELLER. Seller shall have performed all agreements and obligations required to be performed by it under this Agreement prior to the Closing Date. 6.1.3. NO LITIGATION. No action, suit or other proceeding shall be pending before any court, tribunal or governmental authority seeking or threatening to restrain or prohibit the consummation of the transactions contemplated by this Agreement, or seeking to obtain substantial damages in respect thereof, or involving a claim that consummation thereof would result in the violation of any law, decree or regulation of any governmental authority having appropriate jurisdiction. 6.1.4. PERFORMANCE BY SELLER. On or before the Closing Date, Seller will have performed, satisfied and complied in all material respects with all covenants, agreements and conditions required of it by this Agreement. 6.1.5. SELLER'S CERTIFICATE. An authorized officer of Seller shall certify by written document, dated the Closing Date, (the "Seller's Certificate"), that attached to such Seller's Certificate are complete and correct copies of resolutions duly adopted by Seller's Board of Directors, which resolutions have not been modified, amended, or rescinded in any respect and are in full force and effect on the Closing Date, whereby the directors approve the form of, and authorize an authorized officer of Seller to execute, deliver and cause Seller to perform the obligations required by the terms of, this Agreement. Page 8 9 6.2. RELEASE OF SECURITY INTERESTS. Seller shall have delivered to Buyer such documentation as is reasonably necessary to evidence that all security interests of any third parties in and to any of the Assets have been, or shall be, released. 6.3. LICENSE AGREEMENT. Seller shall have delivered to Buyer an executed copy of the License Agreement for Temporary Occupancy of Premises in substantially the form attached hereto as Exhibit A (the "License Agreement"). SECTION 7. CONDITIONS PRECEDENT TO SELLER'S PERFORMANCE 7.1. CONDITIONS PRECEDENT OF OBLIGATIONS OF SELLER. The obligations of the Seller to perform this Agreement are subject to the satisfaction, on or prior to the Closing Date, of the following conditions, unless waived in writing by the Seller, and the Buyer shall use its best efforts to cause such conditions to be fulfilled: 7.1.1. REPRESENTATIONS AND WARRANTIES. The representations and warranties of Buyer in this Agreement or in any Schedule, Exhibit, certificate or document delivered pursuant hereto shall be true and correct on the Closing Date. 7.1.2. PERFORMANCE OF OBLIGATIONS OF BUYER. Buyer shall have performed all obligations required to be performed by it under this Agreement prior by the Closing Date. 7.1.3. NO LITIGATION. No action, suit or other proceeding shall be pending before any court, tribunal or governmental authority seeking or threatening to restrain or prohibit the consummation of the transactions contemplated by this Agreement, or seeking to obtain substantial damages in respect thereof, or involving a claim that consummation thereof would result in the violation of any law, decree or regulation of any governmental authority having appropriate jurisdiction. 7.1.4. CORPORATE APPROVALS. The board of directors of Buyer, and to the extent required the shareholders of Buyer, shall have duly authorized and approved the execution and delivery of this Agreement and all corporate action necessary or proper to fulfill Buyer's obligations hereunder on or before the Closing Date. 7.1.5. BUYERS CERTIFICATE. An authorized officer of Buyer shall certify by written document, dated the Closing Date (the "Buyer's Certificate"), that attached to such Buyer's Certificate are complete and correct copies of resolutions duly adopted by Buyer's Board of Directors, which resolutions have not been modified, amended, or rescinded in any respect and are in full force and effect on the Closing Date, whereby the directors and shareholders approve the form of, and authorize an authorized officer of Buyer to execute, deliver and cause Buyer to perform the obligations required by the terms of the Agreement. 7.2. LICENSE AGREEMENT. Buyer shall have delivered to Seller an executed copy of the License Agreement. Page 9 10 SECTION 8. THE CLOSING 8.1. TIME AND PLACE. The sale and purchase described in this Agreement shall be consummated at 10:00 A.M. local time on March 23, 2001, at the offices of Riordan & McKinzie, 600 Anton Boulevard, 18th Floor, Costa Mesa, California 92626, or such other time, date and place as otherwise agreed by the parties ("Closing" or "Closing Date"). 8.2. CLOSING TRANSACTIONS. At the Closing: 8.2.1. Seller shall deliver to Buyer: (i) Such bills of sale and other instruments of assignment, transfer and conveyance provided for in Paragraph 1.3 above; and (ii) Seller's Certificate. 8.2.2. Buyer shall deliver to Seller: (i) The Closing Date Payment provided for in Paragraph 1.4 above; and (ii) Buyer's Certificate. SECTION 9. INDEMNITY AGREEMENT 9.1. INDEMNIFICATION BY SELLER. Seller covenants and agrees to indemnify, defend, protect and hold harmless Buyer and its subsidiaries, and their respective officers, directors, employees, agents, representatives, assigns and successors (collectively, "Buyer's Indemnified Parties") from, against, and in respect of all liabilities, losses, claims, damages, punitive damages, causes of action, lawsuits, administrative proceedings (including informal proceedings), investigations, audits, demands, assessments, adjustments, judgments, settlement payments, deficiencies, penalties, fines, interest (including interest from the date of such damages) and costs and expenses (including without limitation reasonable attorneys' fees and disbursements of every kind, nature and description) (collectively, "Damages") suffered, sustained, incurred or paid by the Buyer's Indemnified Parties resulting from or arising out of, directly or indirectly: 9.1.1. Any breach of any representation or warranty of Seller set forth in this Agreement (including without limitation any schedule or certificate, delivered by or on behalf of Seller in connection with this Agreement); 9.1.2. Any breach of any covenant or agreement by Seller, under this Agreement; or Page 10 11 9.1.3. Any untrue statement of a material fact relating to Seller and provided to Buyer or its counsel by Seller or Seller's representatives (or counsel therefor) that is thereafter included in any SEC filings made by or on behalf of Buyer or any amendment thereof or supplement thereto; or any failure by Seller or Seller's representatives (or counsel therefor) to disclose to Buyer a material fact relating to Seller that may be required to be stated in any such SEC filings or any amendment thereof or supplement thereto, or that may be necessary to make the statements therein not misleading; 9.1.4. Any action, suit, claim or proceedings of any kind brought by a past employee or past or present shareholder of Seller in connection with any event, action or course of action that occurred during such employee's employment with Seller or during the time such shareholder owned shares of Seller; or 9.1.5. Any action, suit, claim or proceedings of any kind brought by any officer, director or shareholder of Seller against any of those persons who were officers of Seller during the time of the negotiation and execution of this Agreement claiming that any such person has breached his fiduciary duty to Seller as a result of his or her participation with Buyer in the negotiation and execution of this Agreement. In no event shall the aggregate amount payable by Seller to Buyer under this Section 9.1 exceed the Purchase Price plus the amount of all royalties payable hereunder. 9.2. INDEMNIFICATION BY BUYER. Buyer covenants and agrees to indemnify, defend, protect and hold harmless Seller and its employees, agents, representatives, assigns and successors (collectively, "Seller's Indemnified Parties") from, against and in respect of all Damages suffered, sustained, incurred or paid by Seller's Indemnified Parties, resulting from or arising out of, directly or indirectly: 9.2.1. Any breach of any representation or warranty of Buyer set forth in this Agreement; 9.2.2. Any breach of any covenant or agreement by Buyer under this Agreement; or 9.2.3. Any untrue statement of a material fact relating to Buyer (except for statements of material facts provided by Buyer (or counsel therefore) included in any SEC filings, or any amendment thereof or supplement thereto; or any omission of a material fact relating to Buyer (except for omissions of material facts required to be provided by Seller) required to be stated in any SEC filings, or any amendment thereof or supplement thereto, or necessary to make the statements therein not misleading. 9.3. CLAIMS. With respect to each claim for indemnification under this Agreement, the indemnified party shall give prompt notice to the indemnifying party of the claim, provided that failure to give such notice promptly shall not relieve or limit the obligations of the indemnifying party unless the indemnifying party has been materially prejudiced thereby. The indemnifying party, at its sole cost and expense, may, upon notice to the indemnified party within fifteen (15) Page 11 12 calendar days after the indemnifying party receives notice of the claim, participate in the defense of the claim. If the indemnifying party does not elect within such period to participate in the defense of a claim, then the indemnified party shall have the right to select counsel and proceed which such defense, and the cost thereof shall be included in the Damages. Each party shall, in connection with the defense of any action, cooperate with one another in order to defend, pursue and/or negotiate the settlement or other resolution of such matter, in each case, at no cost to the requesting party. The indemnifying party shall not consent to a settlement of, or the entry of any judgment arising from, any claim, unless (i) the settlement or judgment is solely for money damages and the indemnifying party admits in writing its liability to hold the indemnified party harmless from and against any losses, damages, expenses and liabilities arising out of such settlement or judgment, or (ii) the indemnified party consents thereto, which consent shall not be unreasonably withheld. The indemnifying party shall provide the indemnified party with fifteen (15) calendar days notice prior to consenting to a settlement of, or the entry of a judgment arising from, any claim. If the indemnifying party does not participate in the defense of any claim in accordance with the terms of this Agreement, then the indemnifying party shall be bound by the results obtained by the indemnified party with respect to the claim. 9.4. REMEDY. The indemnification provisions of this Agreement shall constitute the sole and exclusive remedy of the parties hereto with respect to claims for monetary damages arising out of or related to this Agreement. Except as aforesaid, the parties will each have and retain all other rights and remedies existing in their favor in equity, including, without limitation, any actions for specific performance and/or injunctive or other equitable relief to enforce or prevent any violations of any provisions of this Agreement. SECTION 10. SURVIVAL OF REPRESENTATIONS AND WARRANTIES All representations and warranties made by any party to this Agreement or pursuant hereto shall survive for a period of one (1) year from the date of Closing of the transactions hereunder. The representations and warranties hereunder shall not be affected or diminished by any investigation at any time by or on behalf of the party for whose benefit such representations and warranties were made. All statements contained herein or in any certificate, Schedule, Exhibit, list or other document delivered pursuant hereto or in connection with the transactions contemplated hereby shall be deemed to be representations and warranties. SECTION 11. MISCELLANEOUS 11.1. PARTIES IN INTEREST. This Agreement shall be binding upon, inure to the benefit of, and be enforceable by Seller and its successors and assigns, and Buyer and its successors and assigns. Buyer shall have the right, upon five days prior notification to Seller, to direct Seller to convey title to the Assets acquired by Buyer to a subsidiary corporation organized by the Buyer, or to any third party as determined by Buyer, in which event, the applicable conveyance documents shall be in the name of such subsidiary. Page 12 13 11.2. HEADINGS. The section and subsection headings contained in this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement. 11.3. NOTICES. All notices, claims, certificates, requests, demands and other communications ("communication") hereunder shall be in writing and shall be deemed to have been duly given when mailed (by registered or certified mail, postage prepaid) addressed as follows: If to Buyer, to: ICCE Technologies, Inc. Attn: Matthew C. Amen, President 5300 Preserve Parkway South Greenwood Village, Colorado 80121 With a copy to: Andrew Bernstein, P.C. Attn: Andrew N. Bernstein 5445 DTC Parkway, Suite 520 Greenwood Village, Colorado 80111 If to Seller, to: Emergent Information Technologies, Inc. Attn: Cathy Wood 4695 MacArthur Court 8th Floor Newport Beach, California 92660 With a copy to: Riordan & McKinzie Attn: James W. Loss, Esq. 600 Anton Blvd. 18th Floor Costa Mesa, CA 92626 or to such other address as the person to whom notice is to be given may have furnished to the other in writing in accordance herewith. A communication given by any other means shall be deemed duly given when actually received by the addressees. Page 13 14 11.4. FURTHER ASSURANCES. After the Closing Date, without further consideration, Seller and Buyer shall execute and deliver such further instruments and documents as either party shall reasonably request to consummate the transactions contemplated by the Agreement and to perfect Buyer's title to the Assets. If reasonably requested by Buyer, Seller will prosecute or otherwise enforce in its own name for the benefit of Buyer any claims, rights, or benefits that are transferred to Buyer under this Agreement and that require prosecution or enforcement in Seller's name. Any prosecution or enforcement of claims, rights, or benefits under this Paragraph will be solely at Buyer's expense, unless the prosecution or enforcement is made necessary by a breach of this Agreement by Seller. 11.5. WAIVERS. Any party to this Agreement may, by written notice to the other party hereto, waive any provision of this Agreement. The waiver by any party hereto of a breach of any provision of this Agreement shall not operate or be construed as a waiver of any subsequent, same or different breach. 11.6. ENTIRE AGREEMENT. This instrument with its attachments constitutes the entire agreement between Buyer and Seller respecting the sale of the Assets by Seller to Buyer, and any agreement or representation respecting the assets or their sale by Seller to Buyer not expressly set forth in this instrument is null and void. 11.7. GOVERNING LAW. This Agreement shall be governed and all rights and liabilities under it determined in accordance with the laws of the State of Colorado in effect on this date. 11.8. COUNTERPARTS. This Agreement may be executed in two or more counterparts, each of which shall be an original, but all of which shall constitute but one Agreement. 11.9. EXPENSES. Each party shall pay all of its own costs and expenses incurred by it in negotiating and preparing this Agreement and in closing and carrying out the transactions contemplated herein and hereby. Page 14 15 Executed by the parties as of the day and year first above written. SELLER: EMERGENT INFORMATION TECHNOLOGIES, INC. BY: ------------------------------------- AJAY PATEL, CHIEF OPERATING OFFICER BY: ------------------------------------- CATHY WOOD, SECRETARY BUYER: ICCE TECHNOLOGIES, INC. BY: ------------------------------------- MATTHEW C. AMEN, PRESIDENT AND SECRETARY Page 15 16 SCHEDULE 1.1 - ASSETS Buyer will purchase from Seller all those assets described below:
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Page 34 35 SCHEDULE 1.5 - ALLOCATION OF PURCHASE PRICE The parties have agreed, after arm's length negotiations, to allocate the Purchase Price among the Assets and the Covenant Not To Compete on the basis set forth below:
Page 35 36 SCHEDULE 3.1 - ENCUMBRANCES TO BE ASSUMED Encumbrances which the Buyer expressly agrees to assume are shown below: None. Page 36 37 SCHEDULE 3.4 - PENDING ACTIONS Except as set forth below, there are no actions, suits, claims, investigations, or legal, administrative or arbitration proceedings pending or, to the best knowledge of Seller, threatened against Seller relating to the Assets, whether at law or in equity, or before or by any federal, state, municipal or other governmental instrumentality. None. Page 37 38 SCHEDULE 3.7.1 - INTELLECTUAL PROPERTY Trademark: ICCE Drawing Type: Words, Letters or Number in Typed Form Application Number 75789870 Filing Date: 09/01/1999 Recordation Date: 06/08/2000 Page 38 39 SCHEDULE 3.7.2 - LICENSES TO INTELLECTUAL PROPERTY Listed below are any and all licenses, purchase options or other interests held by any individual or entity in Seller's Intellectual Property: None. Page 39 40 SCHEDULE 3.8 -- AGREEMENTS, ETC. The following lists all written contracts, agreements and other instruments related to the ICCE software not listed on another Schedule hereto: None. Page 40 41 EXHIBIT A LICENSE AGREEMENT FOR TEMPORARY OCCUPANCY OF PREMISES THIS AGREEMENT (this "Agreement") is made as of this 23rd day of March, 2001, between EMERGENT INFORMATION TECHNOLOGIES, INC., a California corporation, as successor to SM&A Corporation, ("Licensor") and ICCE TECHNOLOGIES, INC., a Colorado corporation, ("Licensee"). RECITALS WHEREAS, Licensor is a tenant under that certain lease ("Emergent Lease") for certain demised premises located at 2060 Briargate Parkway, Colorado Spring, Colorado, 80920 ("Building"); and WHEREAS, pursuant to that certain Asset Sale and Purchase Agreement dated of even date herewith between Licensor and Licensee (the "Purchase Agreement"), Licensor desires to license the space known as the ICCE Lab and certain office space currently being occupied by personnel related to the ICCE Business as of the Closing Date, which space consists of approximately 1,475 square feet (the "Premises"), to Licensee, and Licensee desires to license the Premises from the Licensor. AGREEMENT NOW, THEREFORE, in consideration of the mutual agreements of the parties hereto, and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto agree as follows: 1. Defined Terms. All capitalized terms used but not otherwise defined herein shall have the meanings assigned to them in the Purchase Agreement. 2. Relationship Between Licensor and Licensee. The relationship between Licensor and Licensee is not one of landlord and tenant, but rather one of licensor and licensee. 3. Grant of License. Commencing on the date hereof and continuing for a period between 45 and 120 days as Licensor may determine in its sole discretion (the "Term"), Licensor hereby grants to Licensee a license to enter the Premises for the purpose of carrying out the ICCE Business. During the Term, Licensor shall provide reasonable communications, utilities and other support systems as currently being supplied to the Premises. The entry into the Premises by Licensee, its employees, agents and contractors, the performance of the ICCE Business by Licensee, and the incurrence of costs with respect to the Premises used by Licensee, shall in no way operate to confer upon Licensee any other interest, status, or estate of any kind other than a licensee. Page 41 42 4. Consideration. In consideration for the license granted in Section 3 above, Licensee shall pay Licensor Three Thousand Dollars ($3,000) per month, with the first payment due and payable on March 30, 2001, which payment shall be prorated from the date hereof to such date, and thereafter, any payment shall be made on the last day of each month. 5. Insurance. During the Term, Licensee and/or its contractors shall maintain builder's all-risk insurance and public liability insurance in amounts reasonably satisfactory to Licensor. The public liability insurance shall name Licensor and any person designated by Licensor as additional insured parties. Prior to entering into the Premises, Licensee shall deliver to Licensor standard insurance industry certificates evidencing such insurance and requiring the insurer to provide at least 30 days notice prior to any material modification or any cancellation or termination of such insurance. 6. Compliance with Laws and Rules. Licensee will carry out, or cause to be carried out, the ICCE Business at its sole cost and expense, in an orderly manner so as to avoid unreasonably interfering with or interrupting the normal business operations and quiet enjoyment of the other occupants in the Building and in compliance with this Agreement and all Building rules and regulations of which Licensee shall be notified and all applicable governmental laws, regulations, and codes. Licensee, at its sole cost and expense, shall obtain any and all permits, licenses, and approvals that may be required for the performance of the ICCE Business. 7. Licensee's Assumption of Risk. Licensee shall be solely responsible for (i) the safety of Licensee, its agents and employees on the Premises, (ii) the condition or loss of any items of personal property brought onto the Premises by Licensee, its agents, contractors and employees, (iii) any loss or damage to Licensor arising out of the ICCE Business, including without limitation the prompt removal or bonding off of any liens filed against the Building as a result of the ICCE Business, and (iv) to the extent caused in whole or in part by Licensee, any loss or damage to Licensor arising from (a) a breach or default by Licensee of its obligations hereunder, (b) any act, omission, negligence or misconduct of Licensee, or (c) any accident, injury, occurrence or damage in, about or to the Premises, and Licensee shall indemnify, protect and hold harmless Licensor against and from any such loss or damage. 8. Termination. Licensee may terminate this Agreement, with or without cause, at any time between 45 days and 120 days from the date hereof, by providing 30 days' written notice to Licensee. 9. Notices. Notices under this Agreement shall be in writing and shall be delivered by registered or certified U.S. mail, return receipt requested or by a recognized overnight commercial courier service (such as Federal Express) that routinely retains receipts for delivery. Notices shall be deemed effective on the date marked on the receipt as having been delivered or declined by the addressee. Notices shall be addressed to Licensor and Licensee as set forth in the Purchase Agreement for Seller and Buyer, respectively. Page 42 43 10. Law. This Agreement shall be governed by the law of the State of Colorado. 11. Brokerage. Each of the parties hereto represents and warrants that there are no brokerage commissions or finder's fees of any kind due to anyone in connection with this Agreement, and agrees to indemnify, protect and hold harmless the other parties against and from any liability arising from any such claim, including, without limitation, reasonable attorney fees. 12. Entire Agreement. This Agreement and its exhibits contains the entire and final agreement of and between the parties, and they shall not be bound by any statements, conditions, representations, inducements or warranties, oral or written, not herein contained. 13. Authority. Each party represents that it has the power, authority and legal right to enter into and perform this Agreement; and that all actions and consents required to authorize it to enter into this Agreement have been duly taken and received. Each of the undersigned individuals represents and warrants that he/she has the power, authority and legal right to bind the corporation or partnership he/she purports to represent to the terms of this Agreement by his/her signature hereto. THIS AGREEMENT is made as of the day and date first above written. ICCE TECHNOLOGIES, INC., a Colorado corporation By: ------------------------------------ Name: ---------------------------------- Title: --------------------------------- EMERGENT INFORMATION TECHNOLOGIES, INC., a California corporation By: ------------------------------------ Name: ---------------------------------- Title: --------------------------------- Page 43