Exhibit 2.1
ASSET PURCHASE
AGREEMENT
between
INSURE.COM, INC.
and
QUINSTREET, INC.
Dated as of
October 9, 2009
TABLE OF CONTENTS
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Page
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ARTICLE I
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DEFINITIONS
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1
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1.1
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Certain Defined
Terms
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1
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1.2
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Interpretation
and Rules of Construction
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8
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ARTICLE II
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PURCHASE AND
SALE OF TRANSFERRED ASSETS
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8
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2.1
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Transfer of
Assets
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8
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2.2
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Excluded
Assets
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9
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2.3
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Assumption of
Liabilities
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10
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2.4
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Excluded
Liabilities
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10
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ARTICLE III
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CLOSING;
CONSIDERATION
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11
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3.1
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Closing
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11
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3.2
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Consideration
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11
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3.3
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Seller’s
Deliveries
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11
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3.4
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Purchaser’s Deliveries
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12
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ARTICLE IV
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REPRESENTATIONS
AND WARRANTIES OF SELLER
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13
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4.1
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Due
Organization; Power; No Subsidiaries; Etc
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13
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4.2
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Due
Authorization
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13
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4.3
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No Conflict;
Third Party Consents
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13
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4.4
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Absence of
Changes
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14
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4.5
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No Undisclosed
Liabilities
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14
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4.6
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Intellectual
Property; Privacy
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14
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4.7
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Contracts
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19
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4.8
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Compliance With
Legal Requirements
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19
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4.9
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Governmental
Authorizations
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20
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4.10
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Tax
Matters
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20
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4.11
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Independent
Contractors
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21
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4.12
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Insurance
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21
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4.13
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Related Party
Transactions
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21
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4.14
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Proceedings;
Orders
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21
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4.15
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List of Active
Advertisers
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21
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4.16
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Negative
Reviews
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21
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4.17
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Title to
Assets; Sufficiency of Assets
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21
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-i-
TABLE OF CONTENTS
(continued)
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Page
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4.18
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Opinion
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22
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4.19
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Brokers
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22
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ARTICLE V
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REPRESENTATIONS
AND WARRANTIES OF PURCHASER
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22
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5.1
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Due
Organization
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22
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5.2
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Due
Authorization
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22
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5.3
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No Conflict;
Third Party Consents
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22
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5.4
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Source of
Funds
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22
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5.5
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Brokers
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23
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5.6
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No
Breach
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23
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ARTICLE VI
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ADDITIONAL
AGREEMENTS
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23
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6.1
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Access to
Information
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23
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6.2
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Confidentiality
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23
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6.3
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Non-Diminishment, Non-Solicitation and
Non-Disparagement by Seller
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23
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6.4
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Non-Solicitation and Non-Disparagement by
Purchaser
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25
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6.5
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Regulatory and
Other Approvals; Novations and Consents
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25
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6.6
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Further
Action
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26
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6.7
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Production of
Witnesses and Individuals; Privilege Matters
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26
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6.8
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Mail and Other
Communications
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27
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6.9
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Public
Disclosure
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27
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6.10
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Post-Closing
Deliveries
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27
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ARTICLE VII
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TAXES
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28
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7.1
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Taxes Related
to Purchase of the Transferred Assets
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28
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7.2
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Proration of
Personal Property Taxes
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28
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7.3
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Cooperation on
Tax Matters
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28
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7.4
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Retention of
Tax Records
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28
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7.5
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Allocation of
Purchase Price and Purchase Price Allocation Forms
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29
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ARTICLE VIII
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INDEMNIFICATION
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29
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8.1
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Survival of
Representations and Warranties
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29
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8.2
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Indemnification
by Seller
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29
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8.3
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Indemnification
by Purchaser
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30
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8.4
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Limits on
Indemnification
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30
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-ii-
TABLE OF CONTENTS
(continued)
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Page
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8.5
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Notice of
Loss
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31
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8.6
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Third Party
Claims
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33
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8.7
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Exclusive
Remedy
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34
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8.8
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Characterization of Indemnification
Payments
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34
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8.9
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Setoff
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34
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ARTICLE IX
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GENERAL
PROVISIONS
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34
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9.1
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Notices
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34
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9.2
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Severability
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35
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9.3
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Entire
Agreement
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35
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9.4
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Assignment
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35
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9.5
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Amendment
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36
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9.6
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Waiver
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36
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9.7
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No Third Party
Beneficiaries
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36
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9.8
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Currency
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36
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9.9
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Expenses
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36
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9.10
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Governing
Law
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36
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9.11
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Waiver of Jury
Trial
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36
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9.12
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Counterparts
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36
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9.13
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Further
Assurances
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37
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9.14
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Attorney
Fees
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37
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-iii-
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EXHIBITS
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E
XHIBIT A
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Disclosure
Schedule
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E
XHIBIT B
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Transition
Services Agreement
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E
XHIBIT C
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Bill of
Sale
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E
XHIBIT D
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Copyright
Assignment Agreement
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E
XHIBIT E
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Transferred
Marks Assignment Agreement
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E
XHIBIT F
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Domain Name
Transfer Agreement
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E
XHIBIT G
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Assumption
Agreement
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E
XHIBIT H
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Form of
Seller’s Counsel’s Legal Opinion
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E
XHIBIT I
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Form of
Promissory Note
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iv
ASSET PURCHASE
AGREEMENT
This ASSET PURCHASE AGREEMENT (this
“ Agreement ”), dated as of October 9,
2009, is entered into by and between Insure.com, Inc., a Delaware
corporation, (the “ Seller ”), and QuinStreet,
Inc., a California corporation (“ Purchaser ”
and, together with Seller, each a “ Party ” and,
collectively, the “ Parties ”).
WHEREAS, among other websites,
Seller is the owner and operator of those certain websites
(including the content thereon and all associated software code)
and those certain domain names associated with such websites
identified in Section 2.1(a) of the Disclosure Schedule
(collectively, the “ Websites ”);
WHEREAS, apart from other primary
business activities, including, without limitation, selling certain
insurance products, Seller generates customer leads and referral
click traffic and publishes insurance information for consumers
through the Websites (the “ Transferred Business
”); and
WHEREAS, upon the terms and subject
to the conditions set forth in this Agreement, Seller desires to
sell to Purchaser, and Purchaser desires to purchase from Seller,
the Websites and certain other assets specified herein
(collectively, the “ Transferred Assets ”), in
consideration for the payments from Purchaser and Purchaser’s
assumption of certain liabilities of Seller, each as specified
herein.
NOW, THEREFORE, in consideration of
the foregoing and the mutual agreements and covenants hereinafter
set forth, and intending to be legally bound, Seller and Purchaser
hereby agree as follows:
ARTICLE I
DEFINITIONS
1.1 Certain Defined
Terms . For purposes of
this Agreement:
“ Agreement ”
shall have the meaning set forth in the Preamble to this
Agreement.
“ Affiliate ”
means, with respect to any specified Person, any other Person that
directly, or indirectly through one or more intermediaries,
controls, is controlled by, or is under common control with, such
specified Person.
“ Allocation Schedule
” shall have the meaning as set forth in Section 7.5 of
this Agreement.
“ Ancillary Agreements
” means the Transition Services Agreement, the Bill of Sale,
the Copyright Assignment Agreement, Transferred Marks Assignment
Agreement, the Domain Name Transfer Agreement, and the Assumption
Agreement.
“ Anniversary Payment
” shall have the meaning set forth in Section 3.2(a)(ii)
of this Agreement.
“ Assets ” of any
Person means all of such Person’s right, title and interest
in and to all assets and properties of every kind, nature,
character and description (whether real, personal or mixed, whether
tangible or intangible and wherever situated), including Contracts
and Intellectual Property.
“ Assumed Contracts
” shall have the meaning set forth in Section 2.1(b) of
this Agreement.
“ Assumed Liabilities
” shall have the meaning set forth in Section 2.3 of
this Agreement.
“ Bill of Sale ”
shall have the meaning set forth in Section 3.3(b) of this
Agreement.
“ Breach ” of a
representation, warranty, covenant, obligation or other provision
means there is or has been any inaccuracy in or breach of, or
any failure to comply with or perform, such representation,
warranty, covenant, obligation or other provision.
“ Business Day ”
means any day that is not a Saturday, a Sunday or a scheduled
holiday of the Federal Reserve Bank of New York.
“ Closing ” shall
have the meaning set forth in Section 3.1 of this
Agreement.
“ Closing Date ”
means the date of the Closing.
“ Closing Payment
” shall have the meaning set forth in Section 3.2(a)(i)
of this Agreement.
“ Code ” means
the Internal Revenue Code of 1986, as amended through the date
hereof.
“ Confidentiality
Agreement ” shall have the meaning set forth in
Section 6.2 of this Agreement.
“ Contract ”
means any legally binding agreement, written commitment,
arrangement, lease, license, understanding or contract.
“ control ”
(including the terms “ controlled by ” and
“ under common control with ”), with respect to
the relationship between or among two or more Persons, means the
possession, directly or indirectly or as trustee, personal
representative or executor, of the power to direct or cause the
direction of the affairs or management of a Person, whether through
the ownership of voting securities, as trustee, personal
representative or executor, by Contract, credit arrangement or
otherwise.
“ Copyright Assignment
Agreement ” shall have the meaning set forth in
Section 3.3(c) of this Agreement.
“ Copyrights ”
means all works of authorship, and all copyrights
therein.
“ Databases ”
means all proprietary databases and other data sets and
compilations, whether written, electronic or in another form, and
all documentation relating to the foregoing, including manuals,
memoranda and records.
“ Delaware Law ”
means the General Corporation Law of the State of
Delaware.
“ Disclosure Schedule
” means the Disclosure Schedule attached hereto as
E XHIBIT
A , dated as of the date hereof, delivered by
Seller to Purchaser in connection with this Agreement.
“ Domain Name Transfer
Agreement ” shall have the meaning set forth in
Section 3.3(e) of this Agreement.
“ Encumbrance ”
means any security interest, pledge, hypothecation, mortgage, lien,
lease, license, option, exception, reservation, limitation,
impairment, imperfection of title, condition or known restriction
of any nature or similar encumbrance.
“ Exchange Act ”
means the Securities Exchange Act of 1934, as amended.
“ Excluded Assets
” shall have the meaning set forth in Section 2.2 of
this Agreement.
2
“ Excluded Liabilities
” shall have the meaning set forth in Section 2.4 of
this Agreement.
“ Excluded Websites
” shall have the meaning set forth in Section 2.2(a) of
this Agreement.
“ GAAP ” means
United States generally accepted accounting principles and
practices in effect from time to time as consistently
applied.
“ Governmental
Authority ” means any federal, national, supranational,
state, provincial, local, foreign or other government,
governmental, regulatory or administrative authority, agency or
commission or any court, tribunal, or judicial or arbitral body
with applicable jurisdiction.
“ Governmental
Authorization ” shall mean any: (a) permit, license,
certificate, franchise, concession, approval, consent,
ratification, permission, clearance, confirmation, endorsement,
waiver, certification, designation, rating, registration,
qualification or authorization that is, has been or may in the
future be issued, granted, given or otherwise made available by or
under the authority of any Governmental Authority or pursuant to
any Legal Requirement; or (b) right under any Seller Contract
with any Governmental Authority.
“ Governmental Order
” means any order, writ, judgment, injunction, decree,
stipulation, determination or award entered by or with any
Governmental Authority.
“ Indemnification Claim
Dispute ” shall have the meaning set forth in
Section 8.5(c) of this Agreement.
“ Indemnification Claim
Notice ” shall have the meaning set forth in
Section 8.5(a) of this Agreement.
“ Indemnified Party
” means a Purchaser Indemnified Party or a Seller Indemnified
Party, as the case may be.
“ Indemnifying Party
” means Seller pursuant to Section 8.2 and Purchaser
pursuant to Section 8.3, as the case may be.
“ Intellectual Property
” shall mean and include all algorithms, application
programming interfaces, databases and data collections, diagrams,
formulae, inventions (whether or not patentable), know-how, logos,
marks (including brand names, product names, logos, and slogans),
methods, network configurations and architectures, lists,
processes, proprietary information, protocols, schematics,
specifications, software, software code (in any form including
source code and executable or object code), subroutines, test
results, user interfaces, techniques, URLs, web sites, works of
authorship and other forms of technology (whether or not embodied
in any tangible form and including all tangible embodiments of the
foregoing such as instruction manuals, laboratory notebooks,
prototypes, samples, studies and summaries).
“ Intellectual Property
Rights ” means any and all intellectual property rights
and other similar proprietary rights in any jurisdiction, whether
registered or unregistered, whether owned or held for use under
license, including all rights and interests pertaining to or
deriving from: (a) Patents, inventions, invention disclosures,
discoveries and improvements, whether or not patentable;
(b) Software; (c) Copyrights; (d) Trade Secrets;
(e) Trademarks; (f) Databases; (g) Internet
Properties; (h) publicity rights; and (i) moral rights;
including in each case of (a) through (i) any
registrations of, applications to register, and renewals and
extensions, continuations, continuations-in-part, counterparts,
divisions, or reissues of, and applications for, any of the
foregoing with or by any governmental authority in any
jurisdiction.
3
“ Internet Properties
” means all rights to Uniform Resource Locators and domain
names.
“ IRS ” means the
United States Internal Revenue Service.
“ Knowledge of Seller
” or similar terms used in this Agreement means any fact,
matter or circumstance of which any individual identified on
Section 1.1 of the Disclosure Schedule had actual knowledge
after due inquiry.
“ Legal Requirement
” shall mean any federal, state, local, municipal, foreign or
other law, statute, legislation, constitution, principle of common
law, resolution, ordinance, code, edict, decree, proclamation,
treaty, convention, rule, regulation, ruling, directive,
pronouncement, requirement, specification, determination, decision,
opinion or interpretation as of the date hereof.
“ Liabilities ”
means any and all debts, liabilities and obligations, whether
accrued or fixed, absolute or contingent, matured or unmatured or
determined or determinable, including those arising under any Legal
Requirement, Proceeding or Governmental Order and those arising
under any Contract, arrangement, commitment or
undertaking.
“ Loss ” shall
have the meaning set forth in Section 8.2 of this
Agreement.
“ Material Adverse
Effect ” shall mean any act, occurrence, fact, event,
omission or circumstance (other than the effect of (i) the
Agreement and transaction contemplated herein; (ii) general
economic or political conditions; (iii) conditions or events
affecting the internet commerce industry generally;
(iv) conditions or events affecting the U.S. securities
markets generally; or (v) changes in any Legal Requirements,
except, with respect to each of (i) – (v), to the extent
such effects disproportionately affect the Transferred Business or
the Transferred Assets) which either is, or in the reasonable
judgment of an experienced, prudent business person would be
reasonably likely to be, material and adverse to the Transferred
Business, the Transferred Assets or the underlying value of the
Transferred Assets or results, or in the reasonable judgment of an
experienced, prudent business person would be reasonably likely to
result, in a reasonable decision not to purchase the Transferred
Assets, taken as a whole, on the terms and conditions set forth in
this Agreement.
“ Open Source Code
” means any software code that is distributed as “free
software” or “open source software” or is
otherwise distributed publicly in source code form under terms that
permit modification and redistribution of such software. Open
Source Code includes software code that is licensed under the GNU
General Public License, GNU Lesser General Public License, Mozilla
License, Common Public License, Apache License, BSD License,
Artistic License, or Sun Community Source License.
“ Ordinary Course of
Business ” means, with respect to the operation by Seller
of the Transferred Business, the operation thereof in the ordinary
course of business consistent with prior practices with respect to
the operation thereof.
“ Organizational
Documents ” means, with respect to a particular Person,
the limited liability company agreement, limited partnership
agreement, partnership agreement, certificate of formation,
certificate of incorporation, bylaws or any other similar
organizational document of such Person.
“ Patents ” means
all patents and patent applications.
“ Party ” and
“ Parties ” shall have the meanings set forth in
the Preamble to this Agreement.
4
“ Permitted
Encumbrances ” means (a) Encumbrances for Taxes and
other governmental charges and assessments that are (i) not
yet due and payable or (ii) being contested by appropriate
proceedings in good faith, in the case of clause (ii), for which an
appropriate reserve has been established on Seller’s
Financial Statements in accordance with GAAP, (b) statutory
Encumbrances of landlords, lessors, carriers, warehousemen,
mechanics and materialmen and other similar statutory Encumbrances
imposed by Legal Requirements, in each case that are arising in the
Ordinary Course of Business, that are not material individually or
in the aggregate to Seller and, secure obligations not more than 60
days past due, (c) Encumbrances created by this Agreement or
any of the Ancillary Agreements, or in connection with the
Transactions, or by the actions of Purchaser and
(d) Encumbrances set forth in Section 1.1 of the
Disclosure Schedule.
“ Permitted Purposes
” shall have the meaning set forth in Section 6.1 of
this Agreement.
“ Person ” means
any individual, partnership, firm, corporation, limited liability
company, association, trust, unincorporated organization or other
entity, as well as any syndicate or group that would be deemed to
be a person under Section 13(d)(3) of the Exchange
Act.
“ Proceeding ”
shall mean any action, suit, litigation, arbitration, proceeding
(including any civil, criminal, administrative, investigative or
appellate proceeding and any informal proceeding), prosecution,
contest, hearing, inquiry, inquest, audit, examination or
investigation that is or has been commenced, brought, conducted or
heard by or before, or that otherwise has involved or may involve,
any Governmental Authority or any arbitrator or arbitration
panel.
“ Promissory Note
” shall have the meaning set forth in Section 3.2(a)(ii)
of this Agreement.
“ Purchase Price
” shall have the meaning set forth in Section 3.2(a) of
this Agreement.
“ Purchaser ”
shall have the meaning set forth in the Preamble to this
Agreement.
“ Purchaser Officers
” means Timothy Stevens, Dan Caul, Scott Mackley, Jon Kelly,
Jennie Kim, Genia Jacques and Bill Schmitt.
“ Purchaser Indemnified
Party ” shall have the meaning set forth in
Section 8.2 of this Agreement.
“ Registered IP ”
shall mean (a) all Intellectual Property Rights that are
registered, filed, or issued under the authority of any
Governmental Authority, including all registered Patents,
registered Copyrights and registered Trademarks, (b) all
Internet Properties and (c) all applications for any of the
foregoing.
“ Registered Transferred
IP ” shall mean all Transferred IP that is Registered
IP.
Each of the following shall be
deemed to be a “ Related Party ”: (a) each
individual who is an officer or director of Seller or any of its
Affiliates; (b) each member of the immediate family of each of
the individuals referred to in clause (a) above; and
(c) any Entity in which any one of the individuals referred to
in clauses (a) and (b) above holds or held (or in which
more than one of such individuals collectively hold or held),
beneficially or otherwise, a controlling interest.
“ Remaining Business
” shall have the meaning set forth in Section 6.3(d) of
this Agreement.
5
“ Representative
” of a Person means such Person’s members, directors,
controlling Persons, officers, employees, agents, partners and
advisors (including attorneys, accountants, consultants, bankers,
financial advisors and prospective sources of financing for the
Transactions), as applicable.
“ Sale ” means
the sale by Seller of the Transferred Assets to Purchaser pursuant
to this Agreement.
“ Seller ” shall
have the meaning set forth in the Preamble to this
Agreement.
“ Seller Contracts
” means all Contracts of Seller or any Affiliate of Seller
used solely in connection with or solely related to the Websites or
Transferred Business.
“ Seller Indemnified
Party ” shall have the meaning set forth in
Section 8.3 of this Agreement.
“ Seller IP Contract
” shall mean any Seller Contract to which Seller is a party
or by which Seller is bound, that contains any assignment or
license of, or covenant not to assert or enforce, any Intellectual
Property or Intellectual Property Right or that relates to any
Transferred IP.
“ Seller Organizational
Documents ” shall have the meaning set forth in
Section 2.2(h) of this Agreement.
“ Seller Privacy Policy
” means each privacy policy of Seller relating to the
Websites, including any policy relating to the Transferred Business
in effect at any time within the two year period prior to the
Closing Date.
“ Seller Records
” means Seller’s accounting, business, advertiser and
financial records to the extent that they relate to the Transferred
Assets. In addition, the advertiser records included in the Seller
Records must include in the leads and click data, the identity of
the “advertiser” (i.e., the lead buyer, including when
Seller is using the lead itself).
“ Software ”
means all computer software and firmware, including data files
other than any personal or user data, source code, object code and
software-related specifications and documentation.
“ Specified
Representations ” shall have the meaning set forth in
Section 8.1 of this Agreement.
“ Straddle Period
” shall ha