Document:

ex10-1

 

Exhibit 10.1 IMSI Press Release dated March 4, 2002

Company Contact:

Pam Volpe

International Microcomputer Software, Inc.

415.878.4025

E-mail: pr@imsisoft.com

FOR IMMEDIATE RELEASE
— 

IMSI® TERMINATES MERGER AGREEMENT WITH DCDC

IMSI AND DCDC ENTER INTO ALTERNATIVE AGREEMENT, IMSI ANNOUNCES

CHANGES TO BOARD OF DIRECTORS

March 4, 2002 — IMSI®, (OTC/BB: IMSI), today announced that it has terminated
the Merger Agreement dated August 31, 2001 with Digital Creative Development
Corporation (DCDC). IMSI and DCDC subsequently have entered into a new
agreement whereby DCDC will convert a $3.6 million promissory note from IMSI
into 9 million shares of IMSI common stock, and IMSI will agree to pay DCDC
$250,000, payable over 15 months. IMSI will register the new shares as soon as
practicable.

IMSI also announced the resignation of four board members from the company’s
Board of Directors and addition of two new Board members. The four members to
resign are Skuli Thorvaldsson, Gary Herman, Maurice Sonnenberg and Sigurour Jon
Bjornsson. The two new Board members are Robert Falcone and Richard Berman. Mr. Falcone
has over 31 years of management and Board experience, most recently as CFO of
Nike, Inc. from 1992 to 1998, and is currently CFO of 800.com, an Internet
retailer of consumer electronics and a Board member of Selmet Industries, Inc.

Mr. Berman has over 30 years of experience in acquisitions, restructurings, and
divestitures with and on behalf of many Fortune 500 companies. He is currently
a Director of the Internet Commerce Corporation (ICC), a publicly traded
software company, and Chairman of the KnowledgeCube Group. Mr. Berman has
previously worked in M&A and private equity as Senior Vice President for
Bankers Trust, and then as Chairman and CEO of American Acquisition Company.
For clients including Union Carbide, Eastman Kodak, Time Warner, Disney,
American Home Products, Automatic Data Processing and British Aerospace, Mr.
Berman has led deals valued over $5 billion. Mr. Berman has also invested in
and managed several private companies including Battronics Corp., Voyager
Software, Universal Standard Medical Labs and the leveraged buyout of
Prestolite Battery.

IMSI’s CEO Martin Wade stated “After several months of working to finalize a
transaction between IMSI and DCDC, we believe the termination of the merger
agreement and entering into the alternative agreement to convert the DCDC
promissory note into IMSI common stock and cash is the best way to increase
value for IMSI shareholders.”

4

 

“We are thankful to those Board members who are resigning for their help in
continuing IMSI’s progress during these past few months. With their help IMSI’s
revenues and profits have grown as evidenced by the company’s results for the
quarter ending December 31, 2001 where the company had a 37% increase in
revenues from the previous quarter to $3.7 million, along with a $169,000
operating profit.”

“Our new Board members, Richard Berman and Robert Falcone, are excellent
additions to the company’s board, and I am confident they will help IMSI
achieve its goals for growth and increasing profits in the year ahead,”
continued Wade.

About IMSI

Founded in 1982, IMSI has established a tradition of providing innovative
technology and high quality software to the professional and home user with
easy to use products at affordable prices. The company maintains two business
divisions: Graphic Design and Visual Design.

Visual Design Division: Anchored by IMSI’s flagship product, TurboCAD®,
computer-aided design for professional and home users, this division develops
and markets visual content and design, such as FloorPlan 3D®, TurboProject®,
FormTool®, Flow!TM, and Org Plus®.

Graphic Design Division: IMSI’s Graphic Design division focuses on providing
users with state-of-the-art clipart images, photos, fonts and artistic digital
content through its MasterClips® collection and over the Internet at.
ArtToday.com, a wholly owned subsidiary of IMSI. This division manages the
HiJaak® line of award-winning products.
More information about IMSI can be found at www.imsisoft.com.

Safe Harbor Statement

This announcement contains forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934. Actual results could differ materially from those
projected in the forward-looking statements as a result of various factors
including the ability of the Company to successfully commercialize its new
technologies as well as risk factors set forth under “Factors Affecting Future
Operating Results” in the Company’s annual report on Form 10-K and such other
risks detailed from time to time in the Company’s reports filed with the
Securities and Exchange Commission. The Company undertakes no obligation to
publicly release the result of any revisions to these forward-looking
statements, which may be made to reflect events or circumstances after the date
hereof or to reflect the occurrence of unanticipated events.

5ex10-2

 

Exhibit 10.2 Mutual Termination Agreement and Release.

MUTUAL TERMINATION AGREEMENT AND RELEASE

     This MUTUAL TERMINATION AGREEMENT AND RELEASE dated as of February 28,
2002 (this “Agreement”) is made and entered into by and among Digital Creative
Development Corporation, a Utah corporation (“DCDC”), International
Microcomputer Software, Inc., a California corporation (“IMSI”), and DCDC
Merge, Inc., a California corporation and a wholly owned subsidiary of IMSI
(“Merger Sub”). DCDC, Merger Sub and IMSI are collectively referred to herein
as the “Parties” and each individually as a “Party.” Unless defined herein,
capitalized terms have the meaning given them in the Merger Agreement (as
defined below).

     WHEREAS, the Parties entered into an Agreement and Plan of Merger and
Reorganization dated as of August 31, 2001 (the “Merger Agreement”), pursuant
to which, subject to the terms and conditions stated therein, DCDC was to merge
with and into Merger Sub and Merger Sub was to continue as the surviving
corporation and a wholly-owned subsidiary of IMSI;

     WHEREAS, pursuant to the Merger Agreement, DCDC purchased all rights as
lender and holder under that certain Promissory Note between Union Bank of
California and IMSI in the original principal amount of $3,580,000 (the
“Note”);

     WHEREAS, Section 7.1(a) of the Merger Agreement provides that the Merger
Agreement may be terminated at any time prior to the Effective Time by mutual
written consent duly authorized by the Boards of Directors of DCDC and IMSI;
and

     WHEREAS, the Boards of Directors of each of DCDC and IMSI have determined
to terminate each of the Merger Agreement and any ancillary agreements as
provided herein and release each other from all duties, rights, claims,
obligations and liabilities arising from, in connection with, or relating to,
the Merger Agreement, all as provided herein;

     NOW, THEREFORE, in consideration of the mutual covenants and agreements
set forth in this Agreement, and for other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the Parties,
intending to be legally bound, agree as follows:

     1. Termination of Merger Agreement. The Parties agree that, effective
immediately, the Merger Agreement is hereby terminated pursuant to Section
7.1(a) of the Merger Agreement together with any and all ancillary agreements,
and none of such agreements will be of any further force or effect as of the
date hereof.

     2. Conversion of Note. DCDC and IMSI agree to enter into a Promissory
Note Conversion and General Release (the “Note Conversion”), pursuant to which

6

 

DCDC shall convert the entire outstanding principal amount and all outstanding
interest due under the Note into 9,000,000 shares of common stock of IMSI (the
“Shares”), and cash in the amount of $250,000 to be paid in monthly
installments over 15 months in the amount of $10,000 per month for the first
five installments, with the first installment due on March 1, 2002, and $20,000
per month for the sixth through fifteenth installment. The Shares shall have
such registration rights as set forth in the Note Conversion.

     3. Release of IMSI and Merger Sub by DCDC. DCDC does hereby unequivocally
release and discharge IMSI, Merger Sub and any of their respective officers,
directors, agents, managers, employees, representatives, stockholders, legal
and financial advisors, parents, subsidiaries, affiliates, principals or
partners, and any heirs, executors, administrators, successors or assigns of
any said person or entity (the “IMSI Releasees”), from any and all actions,
causes of action, choses in action, cases, claims, suits, debts, dues, sums of
money, accounts, reckonings, bonds, bills, specialties, covenants, contracts,
controversies, agreements, promises, variances, trespasses, injuries, harms,
damages, judgments, remedies, extents, executions, demands, liens and
liabilities whatsoever, in law, equity or otherwise (collectively, “Actions”),
arising under, in connection with or relating to the Merger Agreement, the
Note, the Note Conversion or any ancillary agreements or the transactions
contemplated thereby, or any action or failure to act under the Merger
Agreement, the Note, the Note Conversion or any ancillary agreements, or in
connection therewith, or in connection with the events leading to the
abandonment of the Merger and the termination of the Merger Agreement, the
Note, the Note Conversion and any ancillary agreements, or in connection with
any press release, public disclosure or private communication relating to the
Merger Agreement, the Note, Note Conversion or any ancillary agreements or the
transactions contemplated thereby, which have been asserted against the IMSI
Releasees or which, whether currently known or unknown, DCDC, or any successors
or assigns of any said entity, ever could have asserted or ever could assert,
in any capacity, against the IMSI Releasees, relating to any claims, or any
transactions and occurrences from any time in connection with the foregoing;
provided, however, the IMSI Releasees are not released from any Actions which
may arise under this Agreement and, in accordance with Section 5 hereof, from
liabilities owed by DCDC as of the date hereof to Lehman & Eilen LLP, a New
York limited liability partnership with a principal office at 50 Charles
Lindbergh Boulevard, Suite 505, Uniondale, New York 11553, for legal fees and
expenses incurred in connection with or relating to the Merger Agreement, the
Note, the Note Conversion or any ancillary agreements or the transactions
contemplated thereby.

     4. Release of DCDC by IMSI and Merger Sub. IMSI and Merger Sub do hereby
unequivocally release and discharge DCDC and any of its officers, directors,
agents, managers, employees, representatives, stockholders, legal and financial
advisors, parents, subsidiaries, affiliates, principals or partners, and any
heirs, executors, administrators, successors or assigns of any said person or
entity (the “DCDC Releasees”), from any and all Actions arising under, in
connection with or relating to the Merger Agreement, the Note, the Note
Conversion or any ancillary agreements or the transactions contemplated
thereby, or any action or failure to act under the Merger Agreement, the Note,
the Note Conversion or any ancillary agreements or in connection

7

 

therewith, or in connection with the events leading to the abandonment of the Merger and the
termination of the Merger Agreement, the Note, the Note Conversion or any
ancillary agreements, or in connection with any press release, public
disclosure or private communication relating to the Merger Agreement, the Note,
the Note Conversion or any ancillary agreements or the transactions
contemplated thereby, which have been asserted against the DCDC Releasees or
which, whether currently known or unknown, IMSI or Merger Sub, or any
successors or assigns of any said entities, ever could have asserted or ever
could assert, in any capacity, against the DCDC Releasees, relating to any
claims, or any transactions and occurrences from any time in connection with
the foregoing; provided, however, the DCDC Releasees are not released from any
Actions which may arise under this Agreement.

     5. DCDC Expenses. IMSI hereby agrees to pay Lehman & Eilen LLP on March
1, 2002 all liabilities as of the date hereof owed by DCDC to Lehman & Eilen
LLP, a New York limited liability partnership with a principal office at 50
Charles Lindbergh Boulevard, Suite 505, Uniondale, New York 11553, for legal
fees and expenses incurred in connection with or relating to the Merger
Agreement, the Note, the Note Conversion or any ancillary agreements of the
transactions contemplated thereby. Full payment of such liabilities by IMSI
shall satisfy DCDC’s obligations thereunder.

     6. Publicity. Attached hereto as Exhibit A is the form of joint press
release to be issued by DCDC and IMSI on signing of this Agreement with respect
to this Agreement and the termination of the Merger Agreement. Except as
required by law or applicable listing agreement with a stock exchange, no other
press release shall be issued regarding the termination of the Merger Agreement
by either DCDC or IMSI without the prior written consent of the other.

     7. Representations of the Parties. DCDC, on the one hand, and IMSI and
Merger Sub, on the other hand, represents to the other Party that: (a) it is
duly organized and validly existing under the laws of the jurisdiction of its
incorporation and in good standing; (b) it has power to execute and perform its
obligations under this Agreement and has taken all necessary action to
authorize such execution, delivery and performance; (c) such execution,
delivery and performance do not violate or conflict with any law applicable to
it, any provision of its charter or bylaws, any order or judgment of any court
or other agency of government applicable to it or any of its assets or any
contractual restriction binding on or affecting it or any of its assets; (d)
all governmental and other consents that are required to have been obtained by
it with respect to this Agreement have been obtained and are in full force and
effect and all conditions of any such consents have been complied with; (e) its
obligations under this Agreement constitute its legal, valid and binding
obligations, enforceable in accordance with their respective terms; and (f) it
beneficially owns no shares of any other Party (except that IMSI owns all of
the shares of Merger Sub).

     8. Waiver. Any term of this Agreement may be waived at any time by the
Party that is entitled to the benefit thereof, but no such waiver shall be
effective unless set forth in a written instrument duly executed by or on
behalf of the Party waiving such term or condition. No waiver by any Party of
any term or condition of this Agreement, in any

8

 

one or more instances, shall be
deemed to be or construed as a waiver of the same or any other term or
condition of this Agreement on any future occasion. All remedies, either under
this Agreement or by any laws or otherwise afforded, will be cumulative and not
alternative.

     9. Amendment. This Agreement may be amended, supplemented or modified
only by a written instrument duly executed by or on behalf of each Party
hereto.

     10. No Assignment; Binding Effect. Neither this Agreement nor any right,
interest or obligation hereunder may be assigned by any Party hereto without
the prior written consent of the other Parties hereto and any attempt to do so
will be void, except for assignments and transfers by operation of any laws.
Subject to the preceding sentence, this Agreement is binding upon, inures to
the benefit of and is enforceable by the Parties and their respective
successors and assigns.

     11. Entire Agreement. This Agreement supercedes all prior discussions,
representations, warranties and agreements, both written and oral, among the
Parties with respect to the subject matter hereof, and contains the sole and
entire agreement among the Parties with respect to the subject matter hereof.
No prior drafts of this Agreement and no words or phrases from any such prior
drafts shall be admissible into evidence in any action, suit or other
proceeding involving this Agreement. Notwithstanding the foregoing, this
Agreement does not terminate any Non-Disclosure Agreement between IMSI and
DCDC.

     12. Third Party Beneficiaries. There are no third party beneficiaries to
this Agreement except for the DCDC Releasees, the IMSI Releasees and Lehman &
Eilen LLP, a limited liability partnership formed under the laws of New York,
with a principal office at 50 Charles Lindbergh Boulevard, Suite 505,
Uniondale, New York 11553.

     13. Headings. The headings used in this Agreement have been inserted for
convenience of reference only and do not define or limit the provisions hereof.

     14. Invalid Provisions. If any provision of this Agreement is held to be
illegal, invalid or unenforceable under any present or future laws, and if the
rights or obligations of any Party hereto under this Agreement will not be
materially and adversely affected thereby, (a) such provision will be fully
severable, (b) this Agreement will be construed and enforced as if such
illegal, invalid or unenforceable provision had never comprised a part hereof,
and (c) the remaining provisions of this Agreement will remain in full force
and effect and will not be affected by the illegal, invalid or unenforceable
provision or by its severance herefrom. Notwithstanding anything in this
Agreement to the contrary, if for any reason any of the releases contained in
Sections 3 or 4 hereof are avoided, nullified or otherwise rendered
ineffective, then all releases in Section 3 or 4 hereof shall be rendered
invalid and unenforceable and this Agreement shall be automatically reformed to
delete Sections 3 and 4 herefrom.

9

 

     15. Injunctive Relief. The Parties agree that irreparable damage would
occur in the event that any of the provisions of this Agreement was not
performed in accordance with its specified terms or was otherwise breached and
that money damages would not be an adequate remedy for any breach of this
Agreement. It is accordingly agreed that in any proceeding seeking specific
performance each of the Parties will waive the defense of adequacy of a remedy
at law. Each of the Parties shall be entitled to an injunction or injunctions
to prevent breaches of this Agreement and to enforce specifically the terms and
provisions hereof in any court of competent jurisdiction, this being in
addition to any other remedy to which they are entitled at law or in equity.

     16. Governing Law. This Agreement shall be interpreted under the laws of
the State of California without reference to California conflicts of law
provisions.

     17. Waiver of Jury Trial. Each of DCDC, IMSI and Merger Sub hereby
irrevocably waives all right to trial by jury in any action, proceeding or
counterclaim (whether based on contract, tort or otherwise) arising out of or
relating to this Agreement or the actions of DCDC, IMSI or Merger Sub in the
negotiation, administration, performance and enforcement thereof.

     18. Counterparts. This Agreement may be executed in any number of
counterparts, each of which will be deemed an original, but all of which
together will constitute one and the same instrument.

     IN WITNESS WHEREOF, DCDC, Merger Sub and IMSI have caused this Mutual
Termination Agreement and Release to be duly executed as of the date first
above written by their respective officers duly authorized.

	 	 	 
	 	DIGITAL CREATIVE

DEVELOPMENT CORPORATION
	 
 
	 	By: 	/s/ Gary Herman
	 	

	 	Gary Herman

Chairman & Chief Executive Officer

	 	 	 
	 	DCDC MERGE, INC.
	 
 
	 	By: 	/s/ Martin Wade, III
	 	

	 	Martin Wade, III

Chief Executive Officer

	 	 	 
	 	INTERNATIONAL MICROCOMPUTER
SOFTWARE, INC.
	 
 
	 	By: 	/s/ Martin Wade, III
	 	

	 	Martin Wade, III

Director, Chief Executive Officer &

Chief Financial Officer

10

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00034-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00034-of-00352.parquet"}]]