Exhibit 99.1
ASSIGNMENT AND ASSUMPTION AGREEMENT (UK)
THIS ASSIGNMENT AND ASSUMPTION AGREEMENT ("Agreement"), dated as of
January __, 2005, is entered into by and between Citel Technologies Limited,
company number 02459517, a corporation organized under the laws of England and
Wales ("Purchaser"), and Verso Technologies, Inc., a Minnesota corporation, MCK
Communications, Inc., a Nevada corporation, MCK Communications, Inc., a Delaware
corporation, MCK Telecommunications Inc., a Yukon Territory corporation, and
Digital Techniques, Inc., a Texas corporation (collectively, "Sellers"),
pursuant to the Asset Purchase Agreement (as amended, supplemented or otherwise
modified from time to time in accordance with its terms), (the "Asset Purchase
Agreement"), dated as of January 21, 2005, by and among Purchaser, Sellers,
Citel Technologies, Inc., a Delaware corporation, and MCK Canada Operations
Inc., a corporation organized under the laws of British Columbia. Each of the
Purchaser and Sellers is referred to herein individually as a "Party" and
together as the "Parties." Capitalized terms used herein but not defined herein
shall have the meanings set forth in the Asset Purchase Agreement.
RECITALS:
WHEREAS, pursuant to Section 2.1(j) of the Asset Purchase Agreement,
Sellers and Purchaser have agreed that the Purchaser shall purchase, acquire,
accept and assume from Sellers, all of each Seller's right, title and interest
in, to and under, and all obligations under or relating to, the Contracts set
forth on Annex A hereto (the "Assigned Contracts"); and
WHEREAS, pursuant to Section 3.1 of the Asset Purchase Agreement and
subject to Section 3.2 thereto, Sellers and Purchaser have agreed that the
Purchaser shall assume and become liable for each of the Liabilities set forth
on Annex B hereto (the "Assumed Liabilities").
NOW THEREFORE, in consideration of the mutual promises and covenants set
forth in this Agreement, and for other good and valuable consideration, the
receipt and sufficiency of which is hereby acknowledged and accepted, each Party
hereby agrees as follows:
1. Assignment and Assumption of Assigned Contracts. Upon the terms and
subject to the condition set forth in the Asset Purchase Agreement from and
after the Closing, (a) each Seller does hereby assign and delegate to Purchaser
all of such Seller's right, title and interest in, to and under, and all
obligations under or relating to, the Assigned Contracts and (b) Purchaser does
hereby assume and agrees to pay, defend, discharge and perform as and when due
all Liabilities and obligations to perform arising under or relating to each of
the Assigned Contracts, except Liabilities, even if arising post-Closing, for
performance under the Assigned Contracts prior to Closing.
2. Assumption of Assumed Liabilities. Upon the terms and subject to the
condition set forth in the Asset Purchase Agreement, Purchaser does hereby
assume, and from and after the Closing shall be obligated to pay, perform and
discharge when due the Assumed Liabilities. Purchaser assumes no Excluded
Liabilities, and the parties hereto agree that all such Excluded Liabilities
shall remain the sole responsibility of Sellers.
Assignment and Assumption Agreement (UK)
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3. Relationship to Asset Purchase Agreement. Sellers make no express or
implied representations or warranties in this Agreement of any kind whatsoever
with respect to the Assigned Contracts. This Agreement in no way defeats,
limits, alters, impairs, enhances or enlarges any right, obligation, claim or
remedy under the Asset Purchase Agreement, including any rights the Parties may
have under the representations, warranties and indemnities set forth therein. If
any provision of this Agreement is construed to conflict with a provision of the
Asset Purchase Agreement, the provision in the Asset Purchase Agreement shall be
deemed controlling.
4. Governing Law; Waiver of Jury Trial. This Agreement shall be governed
by, and interpreted in accordance with, the laws of the State of New York
applicable to contracts made and to be performed entirely within that State,
without reference to its conflict of laws rules. Each of the Sellers and
Purchaser irrevocably consents to the service of process in any action or
proceeding hereunder by the mailing of copies thereof by registered or certified
airmail, postage prepaid, to the address specified in Section 15.4 of the Asset
Purchase Agreement. The foregoing shall not limit the rights of any Party to
serve process in any other manner permitted by applicable law or regulation or
to obtain execution of judgment in any other jurisdiction.
5. Binding Effect; Assignment: No Third Party Beneficiary. Except as
otherwise expressly provided herein, the provisions hereof shall inure to the
benefit of, and be binding upon, each of the Sellers and Purchaser and its
respective successors and assigns. Neither this Agreement nor any rights
hereunder shall be assignable by any Party without the prior written consent of
the other Party. This Agreement is for the sole benefit of the Parties and their
respective successors and permitted assigns and nothing herein, express or
implied, is intended or shall confer upon any other person or entity any legal
or equitable right, benefit or remedy of any nature whatsoever under or by
reason of this Agreement.
6. Counterparts. This Agreement may be executed in two or more
counterparts, each of which shall be deemed to constitute an original, but all
of which together shall constitute one and the same document.
[Remainder of Page Intentionally Left Blank]
Assignm
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IN WITNESS WHEREOF, the Parties have caused this Assignment and Assumption
Agreement to be executed as of the date first written above by their respective
officers thereunto duly authorized.
SELLERS: MCK Communications, Inc. (NV)
Verso Technologies, Inc.
By:/s/ Xxxxxx X. Xxxxxxx
By:/s/ Xxxxxx X. Xxxxxxx ------------------------------
-------------------------------- Name: Xxxxxx X. Xxxxxxx
Name: Xxxxxx X. Xxxxxxx ----------------------------
------------------------------ Title: Vice President
Title: Executive Vice President and --------------------------
Chief Financial Officer
----------------------------- MCK Telecommunications Inc.
MCK Communications, Inc. (DE) By: Xxxxxx X. Xxxxxxx
------------------------------
By: /s/ Xxxxxx X. Xxxxxxx Name: Xxxxxx X. Xxxxxxx
-------------------------------- ----------------------------
Name: Xxxxxx X. Xxxxxxx Title: President
------------------------------ ---------------------------
Title: Vice President
-----------------------------
Digital Techniques, Inc.
By: /s/ Xxxxxx X. Xxxxxxx
--------------------------------
Name: Xxxxxx X. Xxxxxxx
------------------------------
Title: Vice President
-----------------------------
PURCHASER: CIKL Technologies Limited
Citel Technologies Limited
By:/s/ Xxxxxxxx X. Xxxxxxx
By: /s/ Xxxxxxx Xxxxxx Xxxxxxxx ------------------------------
-------------------------------- Name: Xxxxxxxx X. Xxxxxxx
Name: Xxxxxxx Xxxxxx Xxxxxxxx ----------------------------
------------------------------ Title: Secretary
Title: Chief Executive Officer ---------------------------
Assignm
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ANNEX A
ASSIGNED CONTRACTS
SCHEDULE 2.1(j): CONTRACTS - The Assigned Contracts are those identified with an
X in the Purchased Asset column.
MATERIAL SOFTWARE LICENSE AGREEMENTS
MCK PARTY COUNTERPARTY AGREEMENT LICENSED PRODUCTS
--------- ------------ --------- -----------------
MCK-MA Sipro Lab Telecom Inc. License Agreement for G.729 Annex A G.729 Annex A
MCK-? Integrated Systems Inc. Software License & Distribution SNMP and MIB compiler
Agreement
MCK-? Rapid Logic, Inc. Software License Agreement WebControl Integration Tool, WebControl target
software, MIBway SNMP MIB
MCK-? Signal Processing Software License Agreement G.729 Annex A
Associates Pty Ltd
MCK-DE Sylantro Systems License Agreement MGCP stack, MGCP extensions, XML code, registration
Corporation and authentication code, diagnostic and boot and
remote software functionality, basic and extended
business call flows, sample and test code
MCK-? Open Systems Solutions, Software License Agreement OSS ASN.1 Compiler for Windows NT
Inc.
MCK-? Open Systems Solutions, Software License Agreement OSS ASN.1 tools for Vx Works; BER encoder/decorder,
Inc. PER encoder/decoder, DER encoder/decoder
AGREEMENT DATE PURCHASED ASSET EXCLUDED ASSET CONSENT REQUIRED
MCK PARTY COUNTERPARTY MM/DD/YY SCHEDULE 2.1(j) SCHEDULE 2.2 SCHEDULE 5.3
--------- ------------ -------- --------------- ------------ ------------
MCK-MA Sipro Lab Telecom Inc. 12/15/00 X Yes
MCK-? Integrated Systems Inc. 01/05/99 X Yes
MCK-? Rapid Logic, Inc. 03/31/99 X No
MCK-? Signal Processing 10/21/98 X Yes
Associates Pty Ltd
MCK-DE Sylantro Systems 05/10/01 X Yes
Corporation
MCK-? Open Systems Solutions, License No. 7791 X Yes
Inc.
MCK-? Open Systems Solutions, License No. 7792 X Yes
Inc.
Assignment and Assumption Agreement (UK)
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TYPE ACCOUNT NUMBER MCK PARTY COUNTERPARTY
---- -------------- --------- ------------
MCK-DE Trillium Digital Systems, Software License Agreement Frame Relay Control Protocol, Q.9222, VxWorks/Tornado
Inc. Systems Services, MOS Binary-Sun C for Solaris 2.X,
MTSS-Windows NT Binary, GCP-Media Gateway, GCP-Media
Gateway Controller
No copy WindRiver Systems, Inc. License Agreement
MCK-? Analog Devices, Inc. Customer License Agreement G.729A
MCK-? Technology Rendezvous, Software License Agreement Flash Media Manager
Inc.
AGREEMENT PURCHASED ASSET EXCLUDED ASSET CONSENT REQUIRED
TYPE ACCOUNT NUMBER DATE MM/DD/YY SCHEDULE 2.1(j) SCHEDULE 2.2 SCHEDULE 5.3
---- -------------- ------------- --------------- ------------ ------------
MCK-DE Trillium Digital Systems, 02/04/00; X Yes
Inc. amended
05/09/00
No copy WindRiver Systems, Inc. 10/11/99 X No copy
MCK-? Analog Devices, Inc. 08/23/99 X Yes
MCK-? Technology Rendezvous, 07/07/98 X Open Yes
Inc.
LICENSED SOFTWARE
PURCHASED ASSET EXCLUDED ASSET
ITEM DESCRIPTION SCHEDULE 2.1(j) SCHEDULE 2.2
---- ----------- --------------- ------------
Schematic Capture Protel 99SE version 6.67 X
eProduct Designer (Mentor Graphics) X
FPGA/PLD Synplify version 7.5.1 X
Aldec Active HDL version 6.3 X
Altera Quartus II version 4.0 X
Xilinx ISE version 6.2i X
Altera Nios Development Kit Cyclone Edition NIOS II version 1.0 X
DSP ADI Visual DSP Version 1.2 and 1.6 complier X
ADDS-BF533-EZLITE Development Kit X
ADDS-2192-12EXLITE Development Kit X
Assignment and Assumption Agreement (UK)
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PURCHASED ASSET EXCLUDED ASSET
ITEM DESCRIPTION SCHEDULE 2.1(j) SCHEDULE 2.2
---- ----------- --------------- ------------
ADDS-2189M-EZLITE Development Kit X
ADDS-2191-EZLITE Development Kit X
ADDS-218x - EZ-ICE Development Kit X
G711 CODEC ADI Source Code X
G726 CODEC ADI Source Code X
DTMF Detector ADI Source Code X
GSM CODEC ADI Source Code X
VAD Silence Detector ADI Source Code X
883 Line EC ADI Source Code X
G.165 Acoustical EC Analogical Source Code X
G.723 CODEC Library SPA-DOCSPG-006 Rev D X
G.729a CODEC Library SPA-SWASPG-016 Rev A X
G.168 EC Library SPA-DEVMKT-014 Rev A X
Code Composer v1.2 and v2.00 compiler X
Software Windriver VxWorks (Tornado 1 & 2)
VxWorks 5.4/BSP 1.2/Tornado 1.x/Tornado 2.0 & 1.0.2 X
Trillium Frame Relay and MGCP stacks X
Elemedia H.323 stack X
Sylantro MGCP stack X
Windriver Envoy SNMP v2 compiler X
Packeteer Packetwise traffic shaping X
Rapid Logic Web Server X
Motorola M68HC11EVM Development Kit X
Atlas ACE360/2T1 Volcano Development Kit X
Dallas DS2151DK Development Kit X
Rockwell AK56-D190 Development Kit X
Telesoft ISDN Stack X
Intertools Compiler X
Borland Compiler X
Araxismerge (Diff tool) X
Telco Sys Brick API rev 10 X
Telco Sys Brick ISA PC API Interface X
Mapletree Net OEM Development Kit X
Starbase Code Xxxxxx version 6.5a X
Assignment and Assumption Agreement (UK)
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PURCHASED ASSET EXCLUDED ASSET
ITEM DESCRIPTION SCHEDULE 2.1(j) SCHEDULE 2.2
---- ----------- --------------- ------------
Rational Rose C++ Pro version 2002.05.20 X
Syntrillum Cool Edit Pro version 2.1 X
Symantec Procomm Plus version 4.8 X
Vmware Workstation version 4.5.2 X
Microsoft Visual Studio .NET 2002 version v7.0.9466 X
VisionCLICK Rev 7.70A X
Advin Captain NT v1.63 X
DriverLINX Port I/O driver X
Max+plus II 10.23 programmer X
GoodTech Telnet Server V4.0 X
Hexedit X
Infographics Allegro Interface X
TCS M3905 Sets Rel 3 X
Rational Rose Professional X
TCS West 6.0s/w w/English Document X
Upgrade Norstar, MICS 6.1 X
Upgrade NEC 2400 X
Nortel Networks Software (Purchased Tool) X
Schiff InstallShield Professional v7.0 X
Networks Ahead Virus Defense SW X
Astaro ASL Pro Addition X
SOFTWARE APPLICATIONS
PURCHASED ASSET EXCLUDED ASSET
DESCRIPTION SCHEDULE 2.1(j) SCHEDULE 2.2
----------- --------------- ------------
Agile Software v.6.00 X
Expandable II (ERI) X
Great Plains (ERP) X
Siebel (CRM) X
Visual (ERP) X
Assignment and Assumption Agreement (UK)
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APPLICATION DATABASES:
PURCHASED ASSET EXCLUDED ASSET
DESCRIPTION SCHEDULE 2.1(j) SCHEDULE 2.2
----------- --------------- ------------
Agile database X
Expandable II database X
Great Plains database X
Siebel Database X
Visual database X
OPEN SOURCE, PUBLIC SOURCE, OR FREEWARE (SCHEDULE 5.7(g))
PURCHASED ASSET
OPEN SOURCE PRODUCT USED MCK PRODUCT USING THE OPEN SOURCE SOFTWARE LICENSE FORM SCHEDULE 2.1(j)
------------------------ ------------------------------------------ ------------ ---------------
zmodem code M2 code base, GW2, GW1, 7000, 6000, GNU General X
GNU I/O libraries as supplied by
Windriver Systems in VxWorks M2 code base. GW2, GW1, 7000, 6000, 4000 GNU General X
Menu libraries for UI display M2 code base. GW2, GW1, 7000, 6000, 4000 GNU General X
PROTOCOL LICENSE AGREEMENTS
Note: Certain of the agreements listed below also appear in the tables under the
distributor, OEM and reseller category because those agreements include a
distribution component as well as a protocol license.
AGREEMENT DATE
AGREEMENT MCK PARTY COUNTERPARTY MM/DD/YY
--------- --------- ------------ --------
Development/manufacturing MCK-NV ABS Business Systems (Alcatel) 04/27/99
Protocol Specification License Agreement MCK-? Ericsson Business Networks AB 02/15/00
Supply Agreement MCK-? Ericsson Business Networks AB 08/01/00
Distribution Agreement MCK-DE Iwatsu America, Inc. 07/31/00
PURCHASED ASSET EXCLUDED ASSET CONSENT REQUIRED
AGREEMENT SCHEDULE 2.1(j) SCHEDULE 2.2 SCHEDULE 5.3
--------- --------------- ------------ ------------
Development/manufacturing X Yes
Protocol Specification License Agreement X No
Supply Agreement X No
Distribution Agreement X Yes
Assignment and Assumption Agreement (UK)
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AGREEMENT DATE
AGREEMENT MCK PARTY COUNTERPARTY MM/DD/YY
--------- --------- ------------ --------
Agreement and License MCK-? Lucent Technologies, Inc. 08/20/98
Agreement No. LFM305D MCK-NE Lucent Technologies, Inc. 02/15/96
License Agreement MCK-? Mitel Corporation 06/04/92
Product Development and Distribution Agreement MCK-DE NEC America, Inc. 01/25/00
Product Development and Distribution Agreement MCK-NV NEC America, Inc. 01/22/99
Intellectual Property License Agreement MCK-DE NEC America, Inc. and NEC 11/14/03
Infrontia, Inc.
Product Development Agreement MCK-NV NEC Corporation and NEC America, 01/31/97
Inc.
OEM Agreement MCK-DE Nitsuko America 07/26/00
Interface License Agreement MCK-? Northern Telecom Canada Limited 07/21/90
Interface License Agreement MCK-? Northern Telecom Inc. 03/27/92
Development Agreement MCK-DE Panasonic Communications Co., 12/10/03
Ltd.
Distributor Agreement MCK-DE Toshiba America Information 04/17/00
Systems, Inc.
PURCHASED ASSET EXCLUDED ASSET CONSENT REQUIRED
AGREEMENT SCHEDULE 2.1(j) SCHEDULE 2.2 SCHEDULE 5.3
--------- --------------- ------------ ------------
Agreement and License X Yes
Agreement No. LFM305D X Yes
License Agreement X Yes
Product Development and Distribution Agreement X Yes
Product Development and Distribution Agreement X Yes
Intellectual Property License Agreement See note below* See note below* Yes
Product Development Agreement See note below* See note below* Yes
OEM Agreement See note below* See note below* Yes
Interface License Agreement See note below* See note below* Yes
Interface License Agreement See note below* See note below* Yes
Development Agreement X Yes
Distributor Agreement X Yes
SCHEDULE 2.1(i): RIGHTS OF INDEMNITY
Certain contracts between certain of the Sellers and their customers and
vendors contain indemnity provisions. Purchaser will obtain the rights to such
indemnity provisions for contracts that are duly assigned to or assumed by
Purchaser.
Assignment and Assumption Agreement (UK)
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ANNEX B
ASSUMED LIABILITIES
Any Liability arising after the Closing Date under the Contracts that are
included among the Assets in Annex A, other than any Liability arising out of or
relating to a Seller's breach of such Contract that occurred on or before the
Closing Date.
Assignment and Assumption Agreement (UK)
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