Exhibit 10.3
 
 
 ASSET PURCHASE AGREEMENT
 between:
 CONEXANT SYSTEMS, Inc .,
a Delaware corporation;
 and
 NXP B.V.
 a Dutch besloten venootshap
 
 Dated as of April 29, 2008




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TABLE OF CONTENTS
 Page1.
    
    
    Sale And Purchase Of Assets; Related Transactions
    
    
    21.1
    
    
    Sale and Purchase of Assets
    
    
    21.2
    
    
    Excluded Assets
    
    
    31.3
    
    
    Purchase Price
    
    
    41.4
    
    
    Adjustments
    
    
    41.5
    
    
    Escrow Fund
    
    
    61.6
    
    
    Contingent Payments
    
    
    71.7
    
    
    Assumption of Liabilities
    
    
    81.8
    
    
    Excluded Liabilities
    
    
    91.9
    
    
    Sales and Transfer Taxes; VAT; Transferred Subsidiary Tax Matters
    
    
    91.10
    
    
    Allocation of Purchase Price
    
    
    111.11
    
    
    Ancillary Agreements
    
    
    121.12
    
    
    Closing
    
    
    121.13
    
    
    Deliveries by the Purchaser
    
    
    121.14
    
    
    Deliveries by the Seller
    
    
    131.15
    
    
    Nonassignability of Assets
    
    
    141.16
    
    
    Affiliate Acquisitions
    
    
    152.
    
    
    Representations And Warranties Of the Seller
    
    
    152.1
    
    
    Due Organization and Qualification
    
    
    152.2
    
    
    Title to Assets
    
    
    162.3
    
    
    Financial Information
    
    
    162.4
    
    
    Intellectual Property
    
    
    162.5
    
    
    Transferred Contracts
    
    
    202.6
    
    
    Transferred Subsidiary
    
    
    202.7
    
    
    Compliance with Legal Requirements
    
    
    212.8
    
    
    Employee Matters
    
    
    212.9
    
    
    Employee Benefits; ERISA
    
    
    212.10
    
    
    Legal Proceedings
    
    
    222.11
    
    
    Authority
    
    
    232.12
    
    
    Binding Nature of Agreements
    
    
    232.13
    
    
    Non-Contravention; Consents
    
    
    232.14
    
    
    Taxes
    
    
    232.15
    
    
    Territorial Restrictions
    
    
    242.16
    
    
    Absence of Changes
    
    
    242.17
    
    
    Assets
    
    
    242.18
    
    
    Customers and Suppliers
    
    
    242.19
    
    
    Seller Products and Inventory
    
    
    252.20
    
    
    Export Controls, Trade Sanctions and Certain Payments
    
    
    252.21
    
    
    Continued Employment
    
    
    262.22
    
    
    Disclosure
    
    
    262.23
    
    
    Financial Advisor
    
    
    26
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Page3.
    
    
    Representations And Warranties Of the Purchaser
    
    
    263.1
    
    
    Due Organization
    
    
    263.2
    
    
    Authority
    
    
    263.3
    
    
    Binding Nature of Agreements
    
    
    273.4
    
    
    Non-Contravention; Consents
    
    
    273.5
    
    
    Cash Consideration
    
    
    273.6
    
    
    Financial Advisor
    
    
    274.
    
    
    Pre-Closing Covenants
    
    
    274.1
    
    
    Access
    
    
    274.2
    
    
    Conduct of Business
    
    
    284.3
    
    
    Filings
    
    
    294.4
    
    
    Consents; Releases
    
    
    314.5
    
    
    Open Incoming POs and Open Outgoing POs Schedule
    
    
    314.6
    
    
    No Shop
    
    
    314.7
    
    
    Confidentiality
    
    
    324.8
    
    
    Assets in India and China
    
    
    334.9
    
    
    Non-Transferred Inbound IP Licenses
    
    
    334.10
    
    
    Conditions
    
    
    335.
    
    
    Conditions Precedent To The Purchasers Obligation To Close
    
    
    335.1
    
    
    Accuracy of Representations
    
    
    335.2
    
    
    Performance of Obligations
    
    
    345.3
    
    
    Antitrust
    
    
    345.4
    
    
    Instruments of Transfer
    
    
    345.5
    
    
    Ancillary Agreements
    
    
    345.6
    
    
    No Restraints
    
    
    345.7
    
    
    No Proceedings
    
    
    345.8
    
    
    Seller Required Approvals
    
    
    355.9
    
    
    Seller Closing Certificate
    
    
    355.10
    
    
    FIRPTA Certificate
    
    
    355.11
    
    
    Transferred Employees
    
    
    355.12
    
    
    Employee Agreements
    
    
    355.13
    
    
    Intracompany Accounts
    
    
    355.14
    
    
    Supply Agreement
    
    
    355.15
    
    
    Allocation
    
    
    356.
    
    
    Conditions Precedent To The Sellers Obligation To Close
    
    
    356.1
    
    
    Accuracy of Representations
    
    
    356.2
    
    
    Performance of Obligations
    
    
    366.3
    
    
    Antitrust
    
    
    366.4
    
    
    Delivery of Consideration
    
    
    366.5
    
    
    Instruments of Transfer
    
    
    366.6
    
    
    Ancillary Agreements
    
    
    366.7
    
    
    No Restraints
    
    
    366.8
    
    
    Purchaser Closing Certificate
    
    
    366.9
    
    
    Allocation
    
    
    36
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Page7.
    
    
    Termination
    
    
    367.1
    
    
    Right to Terminate Agreement
    
    
    367.2
    
    
    Termination Procedures
    
    
    377.3
    
    
    Effect of Termination
    
    
    388.
    
    
    Indemnification
    
    
    388.1
    
    
    Survival of Representations
    
    
    388.2
    
    
    Indemnification by the Seller
    
    
    388.3
    
    
    Indemnification by the Purchaser
    
    
    418.4
    
    
    Third Party Claim Indemnification Procedures
    
    
    428.5
    
    
    Claims Procedure
    
    
    438.6
    
    
    Adjustments to Losses
    
    
    448.7
    
    
    Payments
    
    
    448.8
    
    
    Characterization of Indemnification Payments
    
    
    458.9
    
    
    Effect of Waiver of Condition
    
    
    459.
    
    
    Employee Matters
    
    
    459.1
    
    
    Employment Matters
    
    
    459.2
    
    
    Special Jurisdiction Employees
    
    
    469.3
    
    
    Waiver of Waiting Period
    
    
    479.4
    
    
    Certain Foreign National Employees
    
    
    479.5
    
    
    W-2/Payroll Matters
    
    
    489.6
    
    
    Accrued Amounts
    
    
    489.7
    
    
    COBRA
    
    
    499.8
    
    
    WARN
    
    
    499.9
    
    
    No Third Party Rights
    
    
    499.10
    
    
    Employee Communications
    
    
    499.11
    
    
    401(k) Plan
    
    
    4910.
    
    
    Miscellaneous
    
    
    4910.1
    
    
    No Implied Representations
    
    
    4910.2
    
    
    Further Actions
    
    
    4910.3
    
    
    Governing Law; Submission to Jurisdiction; Selection of Forum;
Waiver of Trial By Jury
    
    
    5010.4
    
    
    Notices
    
    
    5110.5
    
    
    Public Announcements
    
    
    5210.6
    
    
    Fees and Expenses
    
    
    5210.7
    
    
    Books and Records
    
    
    5210.8
    
    
    Nonsolicitation and Non-Competition
    
    
    5310.9
    
    
    Assignment
    
    
    5410.10
    
    
    Parties in Interest
    
    
    5410.11
    
    
    Severability
    
    
    5410.12
    
    
    Entire Agreement
    
    
    5410.13
    
    
    Waiver
    
    
    5410.14
    
    
    Amendments
    
    
    5510.15
    
    
    Bulk Sales
    
    
    5510.16
    
    
    Counterparts
    
    
    5510.17
    
    
    Interpretation of Agreement
    
    
    5510.18
    
    
    Certain Definitions
    
    
    55
 -iii-




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TABLE OF EXHIBITS
 Exhibit A
    
    Form of IP License AgreementExhibit B
    
    Form of Assignment and Assumption AgreementExhibit C
    
    Form of Intellectual Property Assignment AgreementExhibit D
    
    Form of Escrow AgreementExhibit E
    
    Supply Agreement Pricing and Warranty TermsExhibit F
    
    Transition Services Agreement Terms and ConditionsSchedule A
    
    Products for BMP SalesSchedule B
    
    Key Employees
 -iv-




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This Asset Purchase Agreement Conexant Systems, Inc. Seller NXP B.V. besloten venootshap Purchaser Parties
 Recitals
 i.e. Business
  Exhibit A IP License Agreement
 Exhibit B Assignment and Assumption
Agreements Exhibit C Intellectual Property Assignment Agreements
 Exhibit D
 Schedule B Employee Agreements
  1




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1. SALE AND PURCHASE OF ASSETS; RELATED TRANSACTIONS.
 1.1 Sale and Purchase of Assets. Transferred Assets
 (a) Schedule 1.1(a) Transferred Patents Schedule 1.1(a)
 (b) Schedule 1.1(b) Transferred Non-Patent IP
 (c) Transferred Inventory
 (d) Schedule 1.1(d) Unlisted Contracts 1.1(d) Transferred
Contracts
 (e) Schedule 1.1(e) Transferred Fixed
Assets
 (f) Transferred Shares Transferred Subsidiary
 2




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(g)
 (h)
 (i)
 (j)
 1.2 Excluded Assets Excluded Assets
 (a)
 (b) Schedule 1.2(b)
 (c)
 (d)
 (e)
 3




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1.3 Purchase Price
 (a) Cash Closing Payment
 (b) Cash Deferred Payment
 (c)
 (d)
 1.4 Adjustments
 (a) Inventory Adjustment.
 (i) Purchasers Calculation Net Inventory Closing Inventory Value
 (ii) Sellers Objection
 4




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(iii)
 (iv)
 (v) Final Inventory Value
 (vi)
 5




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(b) Transferred Subsidiary Purchase Price
Adjustment increased reduced
 1.5 Escrow Fund. Exhibit D Escrow
Agreement Escrow Fund Investment Fund
 6




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1.6 Contingent Payments
 (a) Contingent Payment Period Initial Contingent Payment Contingent Payment
 (b)
 7




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(c) NXP Acquiring Person
 1.7 Assumption of Liabilities
 (a) Assumed
Liabilities
 (b)
 8




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1.8 Excluded Liabilities
 1.9 Sales and Transfer Taxes; VAT; Transferred Subsidiary Tax Matters
 (a) Import Duty
Cap provided that
 (b)
  9




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Straddle Periods
  1.10 Allocation of Purchase Price
 11




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1.11 Ancillary Agreements Ancillary Agreements
 (a)
 (b)
 (c)
 (d)
 (e)
 (f)
 1.12 Closing Closing Closing Date
 1.13 Deliveries by the Purchaser
 (a)
 (i)
 12




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(ii)
 (iii)
 (iv)
 (v)
 (vi)
 1.14 Deliveries by the Seller
 (a)
 (b)
 (c)
 (d)
 (e) it being understood
 (f)
 13




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(g)
 (h)
 (i)
 1.15 Nonassignability of Assets provided however de minimis
 14




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1.16 Affiliate Acquisitions provided, however
 2. REPRESENTATIONS AND WARRANTIES OF THE SELLER.
 Seller Disclosure Schedules
 2.1 Due Organization and Qualification
 15




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2.2 Title to Assets
 2.3 Financial Information Section 2.3(a) Financial Information
 Section 2.3(b)
 2.4 Intellectual Property.
 (a) Section 2.4(a) Outbound IP Licenses
 (b) Section 2.4(b)(i)
 16




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Transferred Inbound IP
Licenses IP Contracts Section
2.4(b)(ii) Non-Transferred Inbound IP Licenses
 (c)
 (d)
 17




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(e) Section 2.4(e)
 (f)
 (g) Section 2.4(g)
 (h) Section 2.4(h)
 18




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(i) Section 2.4(h)
 (j)
 (k) Section 2.4(k)
 (l) Section 2.4(l)
 19




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Limited
License Limited License Section 2.4(l) Section 2.4(l)
 (m) Section 2.4(m) Section 2.4(m)
 (n)
 2.5 Transferred Contracts Schedule 1.1(d)
 2.6 Transferred Subsidiary.
 20




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2.7 Compliance with Legal Requirements
 2.8 Employee Matters
 (a) Section 2.8(a)
 (b)
 (c)
 2.9 Employee Benefits; ERISA.
 (a) Section 2.9(a) ERISA
 21




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(b) ERISA
Affiliate COBRA
 (c) Section 2.9(c)
 2.10 Legal Proceedings
 (a) Section 2.10
 22




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(b)
 2.11 Authority
 2.12 Binding Nature of Agreements
 2.13 Non-Contravention; Consents Section 2.13 Seller Required
Approvals
 2.14 Taxes Section 2.14
 23




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2.15 Territorial Restrictions
 2.16 Absence of Changes Section
2.16
 2.17 Assets
 (a)
 (b)
 2.18 Customers and Suppliers
 24




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2.19 Seller Products and Inventory
 (a) Section 2.19(a)
 (b) Section 2.19(b)
 2.20 Export Controls, Trade Sanctions and Certain Payments.
 (a)
 (b)
 25




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(c)
 2.21 Continued Employment
 2.22 Disclosure
 2.23 Financial Advisor
 3. REPRESENTATIONS AND WARRANTIES OF THE PURCHASER.
 Purchaser Disclosure Schedules
 3.1 Due Organization
 3.2 Authority
 26




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3.3 Binding Nature of Agreements
 3.4 Non-Contravention; Consents
 3.5 Cash Consideration
 3.6 Financial Advisor
 4. PRE-CLOSING COVENANTS
 4.1 Access Pre-Closing Period
 27




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provided,
however
 4.2 Conduct of Business Section 4.2
 (a)
 (b)
 (i)
 (ii)
 (iii)
 (iv)
 (v)
 (vi) Section 4.2(b)
 28




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provided however
 (vii)
 (viii)
 (ix)
 (x)
 (xi)
 4.3 Filings
 (a)
 29




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Antitrust Laws
 (b)
 (c)
 30




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4.4 Consents; Releases provided however de minimis
 4.5 Open Incoming POs and Open Outgoing POs Schedule
 4.6 No Shop
 (a) Prohibited Transaction
 31




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provided that
 (b)
 4.7 Confidentiality
 (a)
 32




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(b)
 (c)
 4.8 Assets in India and China i.e.
 4.9 Non-Transferred Inbound IP Licenses
 4.10 Conditions
 5. CONDITIONS PRECEDENT TO THE PURCHASERS OBLIGATION TO CLOSE.
  5.1 Accuracy of Representations
 (a)
 33




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(b)
 5.2 Performance of Obligations
 5.3 Antitrust
 5.4 Instruments of Transfer
 5.5 Ancillary Agreements
 5.6 No Restraints
 5.7 No Proceedings
 34




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5.8 Seller Required Approvals
 5.9 Seller Closing Certificate Seller Closing
Certificate
 5.10 FIRPTA Certificate
 5.11 Transferred Employees Schedule 2.8(a)
 5.12 Employee Agreements.
 5.13 Intracompany Accounts
 5.14 Supply Agreement
 5.15 Allocation
 6. CONDITIONS PRECEDENT TO THE SELLERS OBLIGATION TO CLOSE.
  6.1 Accuracy of Representations
 (a)
 35




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(b)
 6.2 Performance of Obligations
 6.3 Antitrust
 6.4 Delivery of Consideration
 6.5 Instruments of Transfer
 6.6 Ancillary Agreements
 6.7 No Restraints
 6.8 Purchaser Closing Certificate Purchaser Closing
Certificate
 6.9 Allocation.
 7. TERMINATION.
 7.1 Right to Terminate Agreement
 (a)
 36




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(b) Termination Date
 (c)
 (d)
 (e) provided, however
 (f) provided, however
 (g) provided, however
 7.2 Termination Procedures
 37




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7.3 Effect of Termination
 8. INDEMNIFICATION.
 8.1 Survival of Representations. General Survival
Period IP Survival Period
 8.2 Indemnification by the Seller
 (a) Purchaser Indemnified Parties Indemnified Parties
 38




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(i)
 (ii)
 (iii)
 (iv)
 39




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(v)
 (vi)
 (b)
 (i) it being understood that
 (ii) provided however
 40




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(iii) Non-Basketed Losses Deductible
 (c) bona fide
 8.3 Indemnification by the Purchaser
 (a) Seller Indemnified
Parties
 (b)
 41




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8.4 Third Party Claim Indemnification Procedures.
 (a) Indemnifying Party Third Party Claim Claim Notice provided, however Notice
Period it being understood that
 (b)
 42




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(c) it being understood that
 (d) it being understood that
 (e)
 8.5 Claims Procedure. Direct Claim
 43




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8.6 Adjustments to Losses
 (a) Insurance provided
that
 (b) Reimbursement
 8.7 Payments an
 44




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8.8 Characterization of Indemnification Payments
 8.9 Effect of Waiver of Condition
 9. EMPLOYEE MATTERS.
 9.1 Employment Matters
 (a) Offer
Letter Hired
Employees
 45




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Assumed Accrued Vacation provided however provided further
 (b) Schedule 9.1(b)
 9.2 Special Jurisdiction Employees
 (a)
 46




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(b) Schedule 9.2(b) Special
Jurisdiction Transferred Employee provided, however
 (c)
 9.3 Waiver of Waiting Period
 9.4 Certain Foreign National Employees Schedule 9.4 Affected Foreign
National Employees
 47




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Schedule 9.4 USCIS LCA provided that
 9.5 W-2/Payroll Matters.
 9.6 Accrued Amounts. Section 9.6(b)
 48




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9.7 COBRA.
 9.8 WARN. provided, however
 9.9 No Third Party Rights.
 9.10 Employee Communications.
 9.11 401(k) Plan Seller 401(k) Plan
 10. MISCELLANEOUS.
 10.1 No Implied Representations
 10.2 Further Actions
 49




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(a)
 (b)
 (c)
 (d) provided however de minimis
 10.3 Governing Law; Submission to Jurisdiction; Selection of Forum; Waiver of Trial By Jury Chosen Courts
 50




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10.4 Notices
  
  
 51




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.
  
 10.5 Public Announcements
 10.6 Fees and Expenses
 10.7 Books and Records
 52




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10.8 Nonsolicitation and Non-Competition
 (a) No-Hire Period Non-Solicitation Period Restricted Employee Schedule 10.8(a)
 (b)
 53




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10.9 Assignment provided,
however
 10.10 Parties in Interest
 10.11 Severability
 10.12 Entire Agreement
 10.13 Waiver
 54




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10.14 Amendments
 10.15 Bulk Sales
 10.16 Counterparts
 10.17 Interpretation of Agreement
 (a)
 (b)
 (c)
 (d)
 (e)
 10.18 Certain Definitions
  Accounts Receivable
 Affected Foreign National Employees
 55




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Affiliate
 Agreement
 Allocation
 Allocation Arbiter
 Ancillary Agreements
 Antitrust Laws
 Asset Allocation Statement
 Asset Disposition
 Assignment and Assumption Agreements
 Assumed Accrued Vacation
 Assumed Liabilities
 Assignment and Assumption Agreements
 Base Inventory Value
 BMP Sales Schedule A
 Books and Records
 56




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Business
 Business Day
 Cash Closing Payment
 Cash Deferred Payment
 Chosen Courts
 Claim
 Claim Notice
 Closing
 Closing Date
 Closing Inventory Value
 COBRA
 Code
 Confidentiality Agreement
 Consent
 Contingent Payment
 Contingent Payment Period
 57




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Copyrights
 CPA Firm
 Deductible
 DGCL
 Digital Video Recorder
 Direct Claim
 DTV
 Employee Agreements
 Employment Loss
 Encumbrances
 ERISA
 ERISA Affiliate
 Escrow Agent
 Escrow Agreement
 Escrow Amount
 Escrow Fund
 Excluded Assets
 Excluded Liabilities
 Final Inventory Value
 Financial Information
 58




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GAAP
 General Representation .
 General Survival Period
 Governmental Authorizations
 Governmental Entity
 Hired Employees
 HSR Act
 Import Duties
 Import Duty Cap
 Indemnified Parties
 Indemnifying Party
 Intellectual Property Trademarks Patents Trade Secrets
 59




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Copyrights
 Intellectual Property Assignment Agreements
 Intellectual Property Rights
 Intracompany Receivables
 Inventory
 Investment Fund
 IP Contracts
 IP License Agreement
 IP Representations
 IP Survival Period
 Key Employees
 LCA
 Legal Requirement
 Liabilities
 60




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Licensed Non-Patent IP
 Limited License
 Local Purchase Agreements
 Loss Losses
 Net Inventory
 Networked Video Recorder
 No-Hire Period
 Non-Basketed Losses
 Non-Governmental Authorizations
 Non-Solicitation Period
 Non-Transferred Inbound IP Licenses
 61




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Noon Buying Rate
 Notice Period
 NXP Acquiring Person
 Offer Letter
 Open Incoming POs
 Open Outgoing POs
 Outbound IP Licenses
 Parties
 Patents
 Permitted Encumbrances Section
10.18(a)
 62




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Permitted Holder
 Person
 Pre-Closing Period
 Prohibited Transaction
 Purchase Price
 Purchaser
 Purchaser Closing Certificate
 Purchaser Disclosure Schedules
 Purchaser Extended Representations
 Purchaser Indemnified Parties
 Purchaser Material Adverse Effect
 Purchasers Calculation
 Realized
 Registered IP
 63




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Restricted Cash provided
that provided further that
 Restricted Employee
 Seller
 Seller Closing Certificate
 Seller Disclosure Schedules
 Seller Extended Representations
 Seller Indemnified Parties
 Sellers Knowledge Schedule 10.18(b)
 Seller Material Adverse Effect
 64




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Seller 401(k) Plan
 Seller Plan
 Seller Product
 Seller Required Approvals
 Sellers Objection
 Special Jurisdiction
 Special Jurisdiction Employees Schedule 10.18(c) Schedule 10.18(c)
 Special Jurisdiction Transferred Employee
 Specified Employees Schedule 10.18(d) Schedule 10.18(d)
 STB i.e. i e
 65




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Straddle Periods
 Subsidiary
 Superior Proposal bona fide
 Supply Agreement
 Takeover Proposal
 Tax Returns
 Taxes
 Termination Date
 66




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Third Party Claim
 Trademarks
 Trade Secrets
 Transactional Agreements
 Transactions
 Transferred Assets
 Transferred Contracts
 Transferred Employees
 Transferred Fixed Assets
 Transferred Inbound IP Licenses
 Transferred Inventory
 Transferred IP Transferred Intellectual Property
 Transferred Non-Patent IP
 Transferred Patents
 Transferred Shares
 67




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Transferred Subsidiary
 Transferred Subsidiary Closing Assets
 Transferred Subsidiary Closing Balance Sheet
 Transferred Subsidiary Closing Liabilities provided that further provided that
 Transferred Subsidiary Purchase Price Adjustment
 Transition Services Agreement
 Unlisted Contracts
 USCIS
 VAT
 Video Surveillance i.e.
 68




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WARN Act
 69




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NXP B.V.By:Name:Title:CONEXANT SYSTEMS, INC.By:Name:Title:
 70