ASSET PURCHASE AGREEMENT
effective
as of December 30, 2008
between
MOBILEWEBSURF,
AS
SELLER,
AND
MOBILEPRO
CORP., AS PARENT
AND
MWS NEWCO, INC.
AS
BUYER
This
ASSET PURCHASE AGREEMENT
(this “Agreement”), effective as of December 30, 2008 (the “Effective Date”), is
made and entered into by and between MobileWebSurf, a California
corporation with its principal business located at 00000 Xxxx Xxxxxxx Xxxx,
Xxxxx 000, Xxxxxxx, XX 00000 (the “Seller”) and MobilePro Corp., a Delaware
corporation, with its principal business located at 0000 Xxxxxxxxx Xxxx., Xxxxx
000, Xxxxxxxx, Xxxxxxxx 00000 (“MobilePro”) together with its affiliate, MWS
Newco, Inc. , a Delaware corporation with a mailing address at 0000 Xxxxxxxxx
Xxxx., Xxxxx 000, Xxxxxxxx, Xxxxxxxx 00000 (“MWS Newco”) ( MWS Newco is
hereinafter referred to as the “Buyer”).
WHEREAS, the Seller developed
and owns certain software products and related intellectual property and
ancillary assets (the “MWS Business”).
WHEREAS, Seller desires to
sell and assign to Buyer as part of closure of the Seller’s operations, and
Buyer desires to purchase from Seller, free and clear of all liens, claims, and
encumbrances, except as otherwise provided herein, and on the terms and subject
to the conditions set forth in this Agreement, the Acquired Assets as further
identified and defined in Article 1 of this Agreement;
NOW, THEREFORE, in
consideration of the mutual covenants, representations, warranties and
agreements and the conditions set forth in this Agreement, Seller and Buyer
hereby agree as follows:
Article
1. Transfer of Assets
1.1. Transfer of
Assets. On the terms and subject to the conditions set forth
in this Agreement, at the Closing (as hereinafter defined), Seller shall sell,
transfer, and assign to Buyer, and Buyer shall purchase and acquire from Seller
free and clear of all liens, claims, and encumbrances all of Seller’s right,
title, and interest in the MWS Business and related assets (collectively, the
“Acquired Assets”) identified below:
(a) All
of the intellectual property and other intangible assets related to the MWS
Business, including but not limited to patents, trademarks, copyrights, domain
names, websites, software code (including source code), and all software
licenses associated with the MWS Business, as further identified in Schedule
1.1(a);
(b) The
uniform resource locators (“URL” or “URLs”) identified as xxx.xxxxxxxxxxxxx.xxx
together with all related email accounts;
(c) The
accounts receivables of the MWS Business, as further identified in Schedule 1.1
(d) (the “Receivables”);
(d) The
marketing material, \\ customer lists (including customer mailing, phone and
email contact information of actual, former and prospective customers), contact
lists for investors, advisors and strategic partners and pipeline reports (the
“Customer Lists”), as identified in Schedule 1.1 , associated with the MWS
Business, and all other assets, tangible or intangible of Seller except for the
Excluded Assets.
Article
2. Excluded Assets and Assumption of Liabilities
2.1. Excluded
Assets. It is intended that Buyer shall purchase only the
Acquired Assets. The following assets (the “Excluded Assets”) are
specifically not included in the Acquired Assets, and Seller shall not sell to
Buyer and Buyer shall not purchase from Seller any assets listed on Schedule 2.1
attached hereto.
2.2. Assumption of Debts and
Liabilities. Subject to Section 3.1, Buyer will undertake, on
Seller’s behalf, to perform and pay all of the debts, liabilities, and
obligations of Seller arising after the Effective Date and as further identified
in Schedule 2.2 (the “Assumed Liabilities”).
2.3. Excluded
Liabilities. Buyer shall not assume or become liable to pay,
perform, or discharge any debt, liability, or obligation of the Seller other
than the Assumed Liabilities. Excluded Liabilities include, without
limitation:
(a) any
debts, liabilities, and other obligations relating to any Excluded Assets or
other assets not acquired by Buyer;
(b) any
debts, liabilities, and other obligations relating to any taxes attributable to
the Acquired Assets for taxable periods ending before the Effective
Date;
(c) any
debts, liabilities, and other obligations arising from the breach or default by
Seller, prior to the Effective Date, of any lease, license, contract,
instrument, or arrangement entered into by Seller;
(d) any
debts, liabilities, and other obligations arising out of any tort or other act
or omission of Seller before or after the Closing;
(e) any
obligations, current and future, to former or current employees of Seller who
are involved with the MWS Business operations or related enterprises relating to
the period when such employees were employed by Seller including, without
limitation, severance, disability, and retirements benefits obligations;
and
(f) any
liabilities existing on or before the Effective Date.
Article
3. Purchase Consideration
3.1. Consideration. (a)
As consideration in exchange for the transfer of assets contemplated
by this Agreement, on the Closing Date MobileProshall pay five
million (5,000,000) shares of common stock of MobilePro (the “MobilePro Common
Stock”) and Buyer shall pay (b) nineteen percent (19%) of the common stock of
MWS Newco (the “MWS Newco Common Stock”). The MobilePro Common Stock
and the MWS Newco Common Stock shall constitute the “Initial Purchase
Consideration”.
2
(b) For a
thirty-six month (36) period following the Closing Date, as additional
consideration Buyer shall reimburse Seller or its designee an amount not to
exceed two thousand dollars ($2,000) per twelve month period, for the amount of
California franchise taxes owed and paid by Seller to the State of California
(the “CA Franchise Tax”) together with the reasonable legal and/or accounting
expenses incurred by Seller to file, or cause to be filed, the CA Franchise Tax
(the “Additional Consideration”). The Additional Consideration
shall be forwarded to the Seller or its designee.
3.2. Restricted
Securities. The shares of MobilePro Common Stock and MWS Newco
Common Stock issued as Purchase Consideration will not have been registered and
will be deemed to be “restricted securities” under federal securities laws and
may not be resold without registration under or exemption from the Securities
Act of 1933, as amended (the “Securities
Act”). Each certificate evidencing shares of MobilePro Common Stock and
MWS Newco Common Stock to be issued as Purchase Consideration shall have the
following legend:
THE
SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED. SUCH SHARES MAY NOT BE SOLD OR OTHERWISE
TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION WITHOUT EXEMPTION UNDER THE
SECURITIES ACT OR AN OPINION OF LEGAL COUNSEL REASONABLY ACCEPTABLE TO MOBILEPRO
CORP. THAT SUCH REGISTRATION IS NOT REQUIRED.
Article
4. Closing
4.1. Closing. Subject
to the prior satisfaction of the conditions set forth in Article 9 of this
Agreement, the closing of the transactions contemplated by this Agreement (the
“Closing”) will take place via email, fax, mail, and overnight courier on
December 31, 2008, or alternatively, to the extent that the conditions set forth
in Article 9 hereof have not been satisfied by such date, then the Closing shall
occur at such later date as agreed to by the Parties that is within five (5)
business days after the conditions of Article 9 have been
satisfied. The date on which the Closing occurs is referred to herein
as the “Closing Date,” and the Closing shall be deemed effective as of 11:59
p.m, Eastern Standard Time, on the Closing Date.
4.2. General
Procedure. At the Closing, each Party shall deliver to the
Party entitled to receipt thereof the documents required to be delivered
pursuant to Article 9 hereof and such other documents, instruments, and
materials (or complete and accurate copies thereof, where appropriate) as may be
reasonably required in order to effectuate the intent and provisions of this
Agreement, and all such documents, instruments, and materials shall be
satisfactory in form and substance to counsel for the receiving
Party. The conveyance, transfer, assignment, and delivery of the
Acquired Assets shall be effected by Seller’s execution and delivery to Buyer of
a xxxx of sale substantially in the form attached hereto as Exhibit “A” (the
“Xxxx of Sale”) and such other instruments of conveyance, transfer, assignment,
and delivery as Buyer shall reasonably request to cause Seller to transfer,
convey, assign, and deliver the Acquired Assets to Buyer, free and clear of
liens, claims, and encumbrances, other than those set forth in Section
2.2.
3
Article
5. Representations and Warranties of Seller
Seller
hereby represents and warrants to Buyer that, except as set forth in the
Disclosure Schedule, delivered by Seller to Buyer on the date hereof (the
“Disclosure Schedule”) (which Disclosure Schedule sets forth the exceptions to
the representations and warranties contained in this Article 5):
5.1. Incorporation and Corporate
Power. Seller is a corporation duly incorporated, validly
existing and in good standing under the laws of its state of incorporation and
holds all requisite qualifications to do business and has all requisite
corporate power and authority to own and operate the Acquired Assets and to
carry on its business as now conducted.
5.2. Execution, Delivery; Valid
and Binding Agreement. The execution, delivery, and
performance of this Agreement by Seller and the consummation of the transactions
contemplated hereby have been duly and validly authorized by the Board of
Directors of Seller, and except as otherwise set forth in the Disclosure
Schedule, no other proceedings on Seller’s part is necessary to authorize the
execution, delivery, and performance of this Agreement. This
Agreement has been duly executed and delivered by Seller and, assuming that this
Agreement is the valid and binding agreement of Buyer, constitutes the valid and
binding obligation of Seller, enforceable in accordance with its terms, except
as such enforcement may be limited by applicable bankruptcy, insolvency,
reorganization, moratorium, or other laws of general application affecting
enforcement of creditors’ rights or by general principles of
equity.
5.3. Arm’s Length
Transaction. Seller represents and warrants that the terms of
this Agreement, including the Purchase Consideration, have been negotiated with
Buyer and are the result of an arm’s length
negotiation.
5.4. Good
Condition. Except as hereinafter provided, the equipment being
sold to Buyer is in “as is” condition with no representation or warranty as to
the condition thereof. All Acquired Assets of the Seller being
conveyed to the Buyer hereunder are in good working order, reasonable wear and
tear excepted, and are usable and saleable in the ordinary course of
business.
5.5. Brokerage. Other
than Source Capital Group Inc and its representatives whose fee shall
be paid by the Seller, no third party shall be entitled to receive any brokerage
commissions, finder’s fees, fees for financial advisory services, or similar
compensation in connection with the transactions contemplated by this Agreement
based on any arrangement or agreement made by or on behalf of
Seller.
5.6. Absence of Certain
Developments. Except as otherwise set forth on the Disclosure
Schedule, Seller or its affiliates has not mortgaged, pledged, or subjected to
any lien, charge, or any other encumbrance any of the Acquired
Assets.
5.7. Title to the
Assets. Seller owns good and marketable title to the Acquired
Assets and the same are, or shall at the Closing be, free and clear of liens,
claims, and encumbrances.
4
5.8. Labor
Matters. Seller is not a party to or bound by any collective
bargaining or similar agreement with any labor organization, or work rules or
practices agreed to with any labor organization or employee association
applicable to employees of Seller; none of the employees of Seller is
represented by any labor organization and Seller has no knowledge of any union
organizing activities among the employees of Seller.
5.9. Full
Disclosure. To Seller’s best knowledge, no representation or
warranty of Seller hereunder or due diligence materials or other information
supplied by Seller to Buyer in connection herewith is false or misleading with
respect to any material fact, and Seller has not omitted to state any material
fact required to be stated herein or therein necessary to make the statements
herein and therein, in light of the circumstances under which they are made, not
misleading.
5.10. Compliance with Applicable
Law. The Acquired Assets have been operated in compliance in
all material respects with all applicable laws, rules, regulations, and orders
and Seller has not received any written complaint or notice from any
governmental authority alleging that the Seller or its affiliates has violated
any laws, rules, regulations, or orders.
5.11. No Violations and Compliance
with Applicable Law. The execution, delivery and performance
of this Agreement or any of the other agreements and instruments reasonably
necessary to complete the transactions contemplated by this Agreement does not
(i) conflict with or result in any breach or default of any provision of the
respective certificates of incorporation or by-laws of Seller or (ii) violate
any material statute or any order, rule, or regulation or any decision of any
federal, state, local, or foreign court or regulatory authority or
administrative or arbitrative body, agency or tribunal, or any other
governmental body whatsoever ("Legal Authority")
applicable to Seller or any of the Acquired Assets.
5.12. Legal
Proceedings. There are no claims, actions, suits, inquiries,
investigations, or proceedings (“Legal Actions”) pending or, to Seller’s
knowledge, threatened against Seller relating to the transactions contemplated
hereby or the ownership or operation of the Acquired Assets.
5.13 Taxes. All
returns and reports (“Tax Returns”) relating to taxes, assessments, levies, or
similar fees imposed by any federal, state, municipal, or other government
agency (“Taxes”) in connection with the MWS Business or the Acquired Assets have
been or will be duly and timely filed by Seller. All Taxes that are
shown to be due on such Tax Returns have been or will be timely paid in
full. All withholding tax requirements imposed on Seller have been
satisfied in full in all respects. There are no pending or active
audits or threatened audits or proposed deficiencies or other claims for unpaid
Taxes of Seller.
5.14 Adequacy of Purchase
Consideration. Seller has conducted or obtained a business
evaluation and/or appraisal of the Acquired Assets (the “Business Appraisal”)
and has determined the Purchase Consideration to be fair, reasonable and
consistent with the Business Appraisal or has otherwise taken steps, in the
business judgment of the Board of Directors of Seller, to determine that the
Purchase Consideration is fair, reasonable and equitable.
5
Article
6. Representations and Warranties of Buyer
Buyer
hereby represents and warrants to Seller that:
6.1. Incorporation and Corporate
Power. Buyer is a corporation duly organized, validly existing
and in good standing under the laws of the State of Delaware, with the requisite
corporate power and authority to enter into this Agreement and perform its
obligations hereunder and has the capitalization set forth on Exhibit 6.1
hereto.
6.2. Execution, Delivery; Valid
and Binding Agreement. The execution, delivery, and
performance of this Agreement by Buyer and the consummation of the transactions
contemplated hereby have been duly and validly authorized by all requisite
corporate action, and no other corporate proceedings on its part are necessary
to authorize the execution, delivery, or performance of this
Agreement. This Agreement has been duly executed and delivered by
Buyer and constitutes the valid and binding obligation of Buyer, enforceable in
accordance with its terms, except as such enforcement may be limited by
applicable bankruptcy, insolvency, reorganization, moratorium, or other laws of
general application affecting enforcement of creditors’ rights or by general
principles of equity.
6.3. Brokerage. No
third party shall be entitled to receive any brokerage commissions, finder’s
fees, fees for financial advisory services, or similar compensation in
connection with the transactions contemplated by this Agreement based on any
arrangement or agreement made by or on behalf of Buyer.
6.4. Arm’s Length
Transaction. Buyer represents and warrants that the terms of
this Agreement, including the Purchase Consideration, have been negotiated with
Seller and are the result of an arm’s length
negotiation..
Article
7. Covenants of Seller
7.1
Conduct of the
Business. Seller agrees to observe each term set forth in this
Section 7.1 and agrees that, from the date hereof until the Closing Date, unless
otherwise consented to by Buyer in writing,
7.2
Seller
shall not, directly or indirectly, sell, pledge, dispose of, lease, license, or
otherwise encumber any of the Acquired Assets and will continue to operate the
Acquired Assets in the ordinary course of business.
7.3
Conditions. Seller
shall use its commercially-reasonable best efforts to cause the conditions set
forth in Article 9 to be satisfied and to consummate the transactions
contemplated herein as soon as reasonably possible after the satisfaction
thereof (but in any event within five (5) business days of such
date).
Article
8. Covenants of Buyer
Buyer
covenants and agrees with Seller as follows:
8.1. Conditions. Buyer
shall use its commercially-reasonable best efforts to cause the conditions set
forth in Article 9 to be satisfied and to consummate the transactions
contemplated herein as soon as reasonably possible after the satisfaction
thereof (but in any event within five (5) business days of such
date).
6
Article
9. Conditions to Closing
9.1. Conditions to Buyer’s
Obligations. The obligation of Buyer to consummate the
transactions contemplated by this Agreement is subject to the satisfaction of
the following conditions on or before the Closing Date:
(a) The
representations and warranties set forth in Article 5 hereof and otherwise in
this Agreement shall be true and correct in all material respects at and as of
the Closing Date as though then made, except that any such representation or
warranty made as of a specified date (other than the date hereof) shall only
need to have been true on and as of such date;
(b) Seller
shall have performed in all material respects all of the covenants and
agreements required to be performed and complied with by it under this Agreement
prior to the Closing;
(c) MWS
Newco and Seller shall have entered into a mutually agreeable agency
agreement;
(d) On
the Closing Date, Seller shall have delivered to Buyer the
following:
(1) the
Xxxx of Sale and such other instruments of conveyance, transfer, assignment, and
delivery as Buyer shall have reasonably requested pursuant to Section 4 hereof
conveying and assigning the Acquired Assets;
(2) a
certified copy of the resolutions of the board of directors of Seller
authorizing the execution, delivery, and performance of the Agreement and all
documents, instruments, and transactions contemplated herein;
(3) a
certificate dated not more than ten (10) business days prior to the Closing from
the Secretary of State of its state of incorporation to the effect that Seller
is in good standing;
(4) closing
certificates pursuant to which the Seller represents and warrants to Buyer that
its representations and warranties to Buyer are true and correct in all material
respects as of the Closing Date as if then originally made and that all
covenants required by the terms hereof to be performed by the Seller on or
before the Closing Date, to the extent not waived by the Buyer in writing, have
been so performed in all material respects;
(5) all
other documents and instruments as may be reasonably necessary and required to
consummate the transactions contemplated by this Agreement, including, but not
limited to assignment certificates as requested on a case by case
basis.
9.2. Conditions to Seller’s
Obligations. The obligations of Seller to consummate the
transactions contemplated by this Agreement are subject to the satisfaction of
the following conditions on or before the Closing Date:
7
(a) The
representations and warranties set forth in Article 6 hereof will be true and
correct in all material respects at and as of the Closing as though then
made;
(b) Buyer
shall have performed in all material respects all the covenants and agreements
required to be performed by it under this Agreement prior to the
Closing;
(c) Buyer
shall have delivered the Purchase Consideration;
(d) MWS
Newco and Seller shall have entered into a mutually agreeable agency
agreement;
(e) There
shall not be threatened, instituted, or pending any action or proceeding before
any court or governmental authority or agency, domestic or foreign, challenging
or seeking to make illegal, or to delay or otherwise directly or indirectly
restrain or prohibit, the consummation of the transactions contemplated hereby
or seeking to obtain material damages in connection with such
transactions.
Article
10. Termination
10.1. Termination. This
Agreement may be terminated at any time prior to the Closing:
(a) by
the mutual consent of Buyer and Seller;
(b) by
either Buyer or Seller if there has been a material misrepresentation, breach of
warranty, or breach of covenant on the part of the other in the representations,
warranties, obligations, and covenants set forth in this Agreement, and such
misrepresentation or breach is not capable of being fully cured by the Date of
Closing; or
(c) by
either Seller or Buyer if the transactions contemplated hereby have not been
consummated within sixty (60) days of the Effective Date, unless such deadline
is extended by written consent of the Parties (which consent shall not be
unreasonably withheld); provided that, neither Buyer nor Seller will be entitled
to terminate this Agreement pursuant to this Section 10.1(c) if such party’s
willful breach of this Agreement has prevented the consummation of the
transactions contemplated hereby.
10.2. Effect of
Termination. In the event of termination of this Agreement by
either Buyer or Seller, except as provided in Article 11.1, this Agreement shall
become void and there shall be no further liability on the part of either Buyer
or Seller, or their respective stockholders, officers, or directors, except with
respect to willful breaches of this Agreement prior to the time of such
termination.
Article
11. Survival; Indemnification
11.1. Survival. The
covenants, representations, indemnities, and warranties contained in this
Agreement shall survive the closing. In the event this Agreement is
terminated for any reason, the provisions of Sections 5.5, 6.3, 10.2, this 11.1,
12.1, and 12.2 shall survive such termination.
8
11.2. Indemnification by
Seller. Seller agrees to indemnify Buyer with respect to, and
hold Buyer harmless from, any loss, liability, or expense (including, but not
limited to, reasonable legal fees) which Buyer may directly or indirectly incur
or suffer by reason of, or which results, arises out of or is based upon (a) the
inaccuracy of any representation or warranty made by Seller in this Agreement,
or (b) the failure of Seller to comply with any covenants or other commitments
made by Seller in this Agreement, or (c) any claims made by or on behalf of any
creditor of Seller asserted against Buyer by reason of the transfer of the
Acquired Assets to Buyer as contemplated herein.
11.3. Indemnification by
Buyer. Buyer agrees to indemnify Seller with respect to, and
hold Seller harmless from, any loss, liability, or expense (including, but not
limited to, reasonable legal fees) which Seller may directly or indirectly incur
or suffer by reason of, or which results, arises out of or is based upon the (a)
the inaccuracy of any representation or warranty made by Buyer in this
Agreement, or (b) the failure of Buyer to comply with any covenants made by
Buyer in this Agreement.
11.4. Legal
Proceedings. In the event Buyer or Seller becomes involved in
any legal, governmental or administrative proceeding which may result in
indemnification claims hereunder, such Party shall promptly notify the other
Party in writing and in full detail of the filing, and of the nature of such
proceeding. The other Party may, at its option and expense, defend
any such proceeding if the proceeding could give rise to an indemnification
obligation hereunder. If the other Party elects to defend any
proceeding, it shall have full control over the conduct of such proceeding,
although the Party being indemnified shall have the right to retain legal
counsel at its own expense and shall have the right to approve any settlement of
any dispute giving rise to such proceeding, provided that such approval may not
be withheld unreasonably by the Party being indemnified. The Party
being indemnified shall reasonably cooperate with the indemnifying Party in such
proceeding.
Article 12.
Miscellaneous
12.1. Confidentiality; Press
Releases and Announcements. Except as otherwise expressly
permitted by this Agreement, Seller and Buyer will not disclose, the terms of
this Agreement or the information provided in this Agreement or in any
instrument, schedule or other document exchanged in connection with the
transactions contemplated by this Agreement. Notwithstanding anything
to the contrary in this Agreement, Seller and Buyer may
disclose the terms of this Agreement to any person, whether by providing such
person with photocopies of all or portions thereof or otherwise: (i) to the
extent required, in the opinion of counsel to the party making the disclosure,
by applicable laws, rules or regulations, including but not limited to those
rules and regulations promulgated by the United States Securities and Exchange
commission; (ii) as may be required in the reasonable opinion of Seller, Buyer
in connection with the consummation of the transactions contemplated by this
Agreement; (iii) as may be required, in the reasonable opinion of Seller and
Buyer, in the defense of Seller or Buyer in any legal action,
regulatory proceeding; or (v) as may be required by Buyer or Seller to comply
with a duly served order of a court. Prior to the Closing Date,
neither party hereto shall issue any press release (or make any other public
announcement) related to this Agreement or the transactions contemplated hereby
or make any announcement to the employees, customers or suppliers of Seller
without prior written approval of the other party hereto, except as may be
necessary, in the opinion of counsel to the party seeking to make disclosure, to
comply with the requirements of this Agreement or applicable law. If
any such press release or public announcement is so required, the party making
such disclosure shall consult with the other party prior to making such
disclosure, and the parties shall use all reasonable efforts, acting in good
faith, to agree upon a text for such disclosure which is satisfactory to both
parties. If any copy of all or portions of any instrument, schedule or other
document exchanged in connection with the transactions contemplated by this
Agreement are proposed to be disclosed, the parties shall negotiate in good
faith to determine the portions of any such disclosure as may be redacted to
properly preserve the confidentiality thereof.
9
12.2. Expenses. Except
as otherwise expressly provided for herein, Seller and Buyer will pay all of
their own expenses (including attorneys’ and accountants’ fees in connection
with the negotiation of this Agreement, the performance of their respective
obligations hereunder, and the consummation of the transactions contemplated by
this Agreement (whether consummated or not).
12.3. Further
Assurances. Seller agrees that, on and after the Closing Date,
it shall take all appropriate action and execute any documents, instruments, or
conveyances of any kind which may be reasonably necessary or advisable to carry
out any of the provisions hereof, including, without limitation, putting Buyer
in possession and operating control of the Acquired Assets.
12.4. Amendment and
Waiver. This Agreement may not be amended or waived except in
a writing executed by the Party against which such amendment or waiver is sought
to be enforced. No course of dealing between or among any persons
having any interest in this Agreement will be deemed effective to modify or
amend any part of this Agreement or any rights or obligations of any person
under or by reason of this Agreement.
12.5. Notices. All
notices, demands, and other communications to be given or delivered under or by
reason of the provisions of this Agreement will be in writing and will be deemed
to have been given when personally delivered, five business days after being
mailed by certified mail, return receipt requested, or on the next business day
after been sent by nationally recognized overnight courier service for next
business day delivery. Notices, demands and communications to Buyer
and Seller will, unless another address is specified in writing, be sent to the
address indicated below:
Notices
to Buyer:
0000
Xxxxxxxxx Xxxx., Xxxxx 000
Xxxxxxxx,
Xxxxxxxx 00000
Attention: Xxx
Xxxxxx, Chairman and Chief Executive Officer
Notices
to Seller:
MobileWebSurf
0000
Xxxxxxx Xxxxx
Xxxx
Xxxx, XX 94306Attention: [Abhay Bhushan]
10
Copy:
Xxxxx
Xxxxxxxxx
XxXxxxxxx
Will & Xxxxx LLP
San Diego
Xxxxxxx00000 Xx Xxxxxx Xxxx, Xxxxx 000, Xxx Xxxxx, XX 00000
12.6. Assignment. This
Agreement and all of the provisions hereof will be binding upon and inure to the
benefit of the Parties hereto and their respective successors and permitted
assigns, except that neither this Agreement nor any of the rights, interests or
obligations hereunder may be assigned by either Party hereto without the prior
written consent of the other Party hereto, which consent shall not be
unreasonably delayed or denied.
12.7. Severability. Whenever
possible, each provision of this Agreement will be interpreted in such manner as
to be effective and valid under applicable law, but if any provision of this
Agreement is held to be prohibited by or invalid under applicable law, such
provision will be ineffective only to the extent of such prohibition or
invalidity, without invalidating the remainder of such provision or the
remaining provisions of this Agreement.
12.8. Complete
Agreement. This Agreement and the Exhibits and Schedules
hereto, the Disclosure Schedule, and the other documents referred to herein
contain the complete agreement between the parties and supersede any prior
understandings, agreements or representations by or between the Parties, written
or oral, which may have related to the subject matter hereof in any
way.
12.9. Counterparts. This
Agreement may be executed in one or more counterparts, any one of which need not
contain the signatures of more than one Party, but all such counterparts taken
together will constitute one and the same instrument. This
Agreement may be executed by facsimile or other "electronic signature" (as
defined in the Electronic Signatures in Global and National Commerce Act of
2000) in a manner agreed upon by the Parties hereto.
12.10. Governing
Law. The internal law, without regard to conflicts of laws
principles, of the State of California will govern all questions concerning the
construction, validity, and interpretation of this Agreement and the performance
of the obligations imposed by this Agreement.
12.11. No Third-Party
Beneficiaries. This Agreement shall not confer any rights or
remedies upon any person other than the Parties and their respective successors
and permitted assigns.
11
IN WITNESS WHEREOF, the
parties hereto have executed this Agreement as of the effective date set forth
hereinabove.
By:
|
/s/ Xxx X.
Xxxxxx
|
Name:
Xxx X. Xxxxxx
|
|
Title:
Chairman and CEO
|
|
MWS
NEWCO, INC.
|
|
By:
|
/s/ Xxxxx X. Xxxxxx
|
Name:
Xxxxx X. Xxxxxx
|
|
Title:
Secretary
|
|
MOBILEWEBSURF
|
|
By:
|
/s/ Xxxxxx Xxxxxxxxxx
|
Name:
Xxxxxx Xxxxxxxxxx
|
|
Title: Chairman
and CEO
|
12
List of
Exhibits and Schedules
Exhibit
A
|
Xxxx
of Sale
|
|
Schedule
1.1(a)
|
Intellectual
Property and Intangible Assets
|
|
Schedule
1.1(b)
|
Furniture,
Fixture and Equipment
|
|
Schedule
1.1(d)
|
Receivables
|
|
Schedule
1.1(e)
|
Customer
Lists
|
|
Schedule
2.1
|
Excluded
Assets
|
|
Schedule
2.2
|
Assumed
Liabilities
|
|
Schedule
6.1
|
Buyer
Capitalization
|
|
Disclosure
Schedules
|
13
EXHIBIT
A
FORM
OF XXXX OF SALE
1. Sale and Transfer of
Assets. For good and valuable consideration, the receipt,
adequacy, and legal sufficiency of which are hereby acknowledged and as
contemplated by Section 9.1(d) of that certain Asset Purchase Agreement dated as
of December __, 2008 (the “Asset Purchase Agreement”), to which MobilePro Corp.
and MWS Acquisition Corp. (“Buyer”) and MobileWebSurf (the “Seller”),
are parties, Seller hereby sells, transfers, assigns, conveys, grants, and
delivers to Buyer, effective as of 11:59 p.m., Eastern Standard Time, on
_________________, 20__ (the “Effective Time”), all of Seller’s rights, title,
and interest in and to all of the Acquired Assets (as defined in the Asset
Purchase Agreement).
2. Further
Actions. Seller Covenants and agrees to warrant and defend the
sale, transfer, assignment, conveyance, grant, and delivery of the Acquired
Assets hereby made against all persons whomever, to take all steps reasonably
necessary to establish the record of Buyer’s title to the Acquired Assets and,
at the request of Buyer, to execute and deliver further instruments of transfer
and assignment and take such other action as Buyer may reasonably request to
more effectively transfer and assign to and vest in Buyer each of the Acquired
Assets, all at the sole cost and expense of Buyer.
3. Power of
Attorney. Without limiting Section 2 hereof, Seller hereby
constitutes and appoints Buyer the true and lawful agent and attorney in fact of
Seller, with full power of substitution and resubstitution, in whole or in part,
in the name and stead of Seller but on behalf and for the benefit of Buyer and
its successors and assigns, from time to time:
(a) to
demand, receive, and collect any and all Acquired Assets and to give receipts
and releases for and with respect to the same, from time to time;
(b) to
institute and prosecute, in the name of Seller or otherwise, any and all
proceedings at law, in equity, or otherwise that Buyer or its successors or
assigns may deem proper in order to collect or reduce to possession any kind of
the Acquired Assets and in order to collect or enforce any claim or right of any
kind hereby assigned or transferred, or intended to e so; and
(c) to
do all things legally permissible, required, or reasonably deemed by Buyer to be
required to recover and collect the Acquired Assets and to use Seller’s name in
such manner as Buyer may reasonably deem necessary for the collection and
recovery of the same.
Seller
hereby declaring that the foregoing powers are coupled with an interest, such
powers are and shall be irrevocable by Seller.
14
4. Terms of Asset Purchase
Agreement. The terms of the Asset Purchase Agreement,
including, without limitation, Seller’s representations, warranties, covenants,
agreements, and indemnities relating to the Acquired Assets, are incorporated
herein by this reference. Seller acknowledges and agrees that the
representations, warranties, covenants, agreements, and indemnities contained in
the Asset Purchase Agreement shall not be superseded hereby but shall remain in
full force and effect to the full extent provided therein. In the
event of any conflict or inconsistency between the terms of the Asset Purchase
Agreement and the terms hereof, the terms of the Asset Purchase Agreement shall
govern.
IN
WITNESS WHEREOF, Seller has executed this Xxxx of Sale as of ___________,
20__.
By:
|
||
Name:
|
||
Title:
|
||
MWS
ACQUISITION CORP.
|
||
By:
|
||
Name:
|
||
Title:
|
||
MOBILEWEBSURF
|
||
By:
|
||
Name:
|
||
|
Title:
|
15