printer-friendly

Sample Business Contracts

Restructuring Agreement - Taligent Inc., Apple Computer Inc. and International Business Machines Corp.

Sponsored Links

                   RESTRUCTURING AGREEMENT
                             
     RESTRUCTURING  AGREEMENT (this "Agreement") dated as of  December  14,
1995  among  TALIGENT, INC., a Delaware corporation (the "Company"),  APPLE
COMPUTER,  INC.,  a  California  corporation ("Apple"),  and  INTERNATIONAL
BUSINESS MACHINES CORPORATION, a New York corporation ("IBM").
                         
			   RECITALS
                             
     HP  has  indicated its intention to exercise its rights to  the  Early
Exit Option under the Stockholder Agreement between HP, Apple and IBM,  and
tender all the HP Shares to the Company.
    
     Accordingly, Apple, IBM and the Company have determined it is  in  the
best  interest  of  the Company and its stockholders  to  make  fundamental
changes in the Company (the "Restructuring").
    
     The  parties intend that Apple, like HP, will transfer all its  shares
in  the Company to the Company, and at that time the Company will become  a
wholly-owned subsidiary of IBM.
    
     The parties will cause the mission and management of the Company to be
simplified  and  expect  the  number  of  employees  to  be  reduced   from
approximately 400 to approximately 150.
    
     The  parties expect that Company employees, customers and  the  public
will  begin to be informed of the planned changes on approximately December
4, 1995.
                          AGREEMENT
                             
     The parties hereby agree as follows:
     
     ARTICLE 1.  Definitions and Construction

     1.1  Certain Definitions.
    
     As used in this Agreement, the following terms shall have the meanings
specified below:
    
     "Affiliate" shall mean, when used with respect to a specified  Person,
another   Person  that  directly,  or  indirectly  through  one   or   more
intermediaries,  controls or is controlled by or is  under  common  control
with the Person specified.
     
     "Apple  Confidentiality  Agreement"  shall  mean  the  Confidentiality
Agreement between Apple and the Company dated February 16, 1994 .
                            
<PAGE>
    
     "Apple" shall mean Apple Computer, Inc., a California corporation.
    
     "Apple  Company Note" shall mean the note evidencing the approximately
$8 million obligation of the Company to Apple due 1996.
    
     "Apple  License  In"  shall mean the Technology License  and  Transfer
Agreement  between  Apple and the Company dated as of  March  1,  1992,  as
amended.
     
    "Apple  License  Out"  shall mean the Agreement  for  License  of  the
Company's Products to Apple dated as of March 1, 1992, as amended.
   
     "Apple  Patent License" shall mean the Patent Cross-License  Agreement
between Apple and the Company dated as of March 1, 1992.
   
     "Apple   Support  Agreement"  shall  mean  the  Support  and  Services
Agreement between Apple and the Company dated as of March 1, 1992.
    
     "Apple  Trademark License" shall mean the Trademark License  Agreement
between Apple and the Company dated as of December 14, 1994.
    
     "Apple  Patent Venture Shares" shall mean shares representing one-half
of the equity of the Patent Venture.
    
     "Apple  Shares"  shall mean the 1,000,000 shares  of  Class  A  Common
Stock, par value $.01 per share, of the Company, held by Apple.

     "Approval"  shall  mean  any  consent, approval,  license,  permit  or
authorization.

     "Board" shall mean the board of directors of the Company.

     "Business Day" shall mean any day other than a day which is a Saturday
or  Sunday or other day on which commercial banks in New York, New York, or
San Francisco, California, are authorized or required to remain closed.  In
no  case shall any day in the period from December 23 of a particular  year
to January 2 of the following year be considered a "Business Day".

     "Closing" shall mean transactions described in Section 2.1 and Section
2.2.

     "Closing  Agreements" shall mean the New Apple License  Out,  the  New
Research Agreement, and the Patent Venture Agreement.

     "Closing Date" shall mean the date on which each Closing shall occur.

     "Contract"  shall  mean  contract, indenture, mortgage,  lease,  deed,
commitment, agreement, arrangement or legally binding understanding.
                            
<PAGE>
    
     As  used  in  this  Agreement, "control" (including, with  its  correlative
meanings,  "controlled  by"  and "under common control  with")  shall  mean
possession,  directly  or  indirectly, of power  to  direct  or  cause  the
direction   of  management  or  policies  (whether  through  ownership   of
securities  or  partnership or other ownership interests,  by  contract  or
otherwise).

     "Dollars"  or  "$"  shall mean lawful money of the  United  States  of
America.

     "Existing   Patent  Licenses"  shall  mean  Patent   Cross   Licensing
Agreements  between the Company and each of Apple, HP,  and  IBM;  and  any
patent  grant  or  immunity requirement in the New  Apple  License  Out  or
similar agreements between the Company and each of HP and IBM.

     "Existing  Patents"  shall mean all of the Company's  issued  patents,
patent  applications  and  written invention disclosures  received  by  the
Company's patent counsel as of January 29, 1996.

     "Governmental Approval" shall mean any Approval of, or declaration  or
filing with, any Governmental Authority.

     "Governmental  Authority" shall mean any court, administrative  agency
or  commission or other governmental agency or instrumentality, domestic or
foreign, or any arbitrator, of competent jurisdiction.

     "HP" shall mean Hewlett-Packard Company, a California corporation.

     "HP  Shares" shall mean the shares of Class E Common Stock, par  value
$.01 per share, of the Company, held by HP.

     "Holder" shall mean any registered holder of Common Stock.

     "HSR Act" shall mean Section 7A of the Clayton Act.

     "IBM"  shall mean International Business Machines Corporation,  a  New
York corporation.

     "IBM Company Note" shall mean the note evidencing the approximately $8
million obligation of the Company to IBM due 1996.

     "IBM  Patent  License"  shall mean the Patent Cross-License  Agreement
between IBM and the Company dated as of March 1, 1992.

     "IBM Patent Venture Shares" shall mean shares representing one-half of
the equity of the Patent Venture.

     "Injunction" shall mean any preliminary, temporary, interim  or  final
injunction, temporary restraining order or other legal prohibition.

     "Judgment" shall mean any judgment, order, decree or arbitral award.
                            
<PAGE>
    
     "Law" shall mean any statute, law, ordinance, rule or regulation.

     "Lien"  shall mean, with respect to any asset, (i) any mortgage,  deed
of  trust,  lien,  pledge, charge, security interest,  easement,  covenant,
right  of way, restriction , equity or encumbrance of any nature whatsoever
in  or  on such asset, (ii) the interest of a vendor or a lessor under  any
conditional  sale  agreement, capital lease or  title  retention  agreement
relating  to  such asset and (iii) in the case of securities, any  purchase
option,  call  or  similar  right of a third party  with  respect  to  such
securities.

     "Litigation"   shall   mean  any  written  claim,   action,   lawsuit,
arbitration or proceeding.

     Any  reference  to any fact, event, change or effect being  "material"
with respect to any party shall mean an event, change or effect that is or,
insofar  as  can reasonably be foreseen, will be material to the  business,
properties,  assets,  liabilities,  financial  condition  or   results   of
operations of such party and its Subsidiaries taken as a whole.

     "New  Apple License Out" shall mean the amended and restated Agreement
for  License  of  the Company's Products to Apple in the form  attached  as
Exhibit 1.

     "New Research Agreement" shall mean a new Research and Experimentation
Agreement  among  the Company, Apple and IBM containing  substantially  the
terms of the Research Agreement.

     "Operative Agreements" shall mean the Apple Confidentiality Agreement,
the  Apple License In, the Apple License Out, the Apple Patent License, the
Research Agreement and the Stockholder Agreement.

     "Party" shall mean any party hereto.

     "Patent Venture" shall mean a Delaware corporation to be created on or
before January 26, 1996, of which half the capital stock shall be issued to
Apple at the First Closing.

     "Patent Venture Agreement" shall mean the Patent Venture Agreement and
related  corporate or other organizational documents to be entered into  by
Apple and IBM as described in Section 5.3.

     "Person"  shall  mean any individual, firm, corporation,  partnership,
trust,  joint  venture, Governmental Authority or other entity,  and  shall
include any successor (by merger or otherwise) of such entity.

     "Research  Agreement"  shall  mean the  Research  and  Experimentation
Agreement  among  the Company, HP, Apple and IBM dated as of  February  16,
1994.

     "Shares" shall mean shares of Common Stock.

     "Stockholder Agreement" shall mean the Stockholder Agreement among the
Company, HP, Apple and IBM dated as of February 16, 1994.
                            
<PAGE>
    

     "Subsidiary"  of  any  Person shall mean a corporation,  company  or  other
entity  (i)  more  than  50%  of  whose outstanding  shares  or  securities
(representing  the  right to vote for the election of  directors  or  other
managing authority) are, or (ii) which does not have outstanding shares  or
securities  (as  may  be  the  case  in a  partnership,  joint  venture  or
unincorporated association), but more than 50% of whose ownership  interest
representing the right to make decisions for such other entity is,  now  or
hereafter, owned or controlled, directly or indirectly, by such Person, but
such  corporation,  company  or  other entity  shall  be  deemed  to  be  a
Subsidiary only so long as such ownership or control exists.

     "Tax"  or  "Taxes"  shall mean all Federal, state, local  and  foreign
taxes,  assessments  and other governmental charges,  including  (i)  taxes
based  upon or measured by gross receipts, income, profits, sales,  use  or
occupation, (ii) value added, ad valorem, transfer, franchise, withholding,
payroll,   employment,  excise  or  property  taxes,  (iii)  all  interest,
penalties and additions imposed with respect to such amounts and  (iv)  any
obligations under any agreements or arrangements with any other Person with
respect to such amounts.

     "Transactions" shall mean the transactions contemplated by the Closing
Agreements  which are to be effected at the First Closing  and  the  Second
Closing.

     1.2  Terms Generally.

     The  definitions  in  Section 1.1 shall  apply  equally  to  both  the
singular  and plural forms of the terms defined.  Whenever the context  may
require,  any  pronoun shall include the corresponding masculine,  feminine
and neuter forms.  The words "include", "includes" and "including" shall be
deemed  to  be followed by the phrase "without limitation".  All references
herein  to  Articles,  Sections, Exhibits and  Schedules  shall  be  deemed
references to Articles and Sections of, and Exhibits and Schedules to, this
Agreement unless the context shall otherwise require.  The headings of  the
Articles  and Sections are inserted for convenience of reference  only  and
are not intended to be a part of or to affect the meaning or interpretation
of  this  Agreement.   Unless  the context  shall  otherwise  require,  any
reference to any agreement or other instrument or statute or regulation are
to it as amended and supplemented from time to time (and, in the case of  a
statute or regulation, to any successor provision).  Any reference in  this
Agreement  to  a  "day"  or  a  number  of  "days"  (without  the  explicit
qualification  of  "Business") shall be interpreted as  a  reference  to  a
calendar day or number of calendar days.  If any action or notice is to  be
taken or given on or by a particular calendar day, and such calendar day is
not a Business Day, then such action or notice shall be deferred until,  or
may be taken or given, on the next Business Day.

     ARTICLE 2.  Purchase and Sale

     2.1  First Closing
          (a)   The  First Closing will take place on January 30,  1996  at
     10:00  a.m.  local  time  at  the offices  of  Apple's  corporate  law
     department, 20400 Stevens Creek Blvd., Cupertino, California, or  such
     other date and place specified by agreement of Apple and IBM.
    
                            
<PAGE>
         
         
     (b)   At  the  First  Closing,  upon the  terms  and  subject  to  the
     conditions set forth herein,
    
                (i)   the  Company will transfer to Apple the Apple  Patent
     Venture   Shares,  by  delivery  of  a  certificate  or   certificates
     representing  the Apple Patent Venture Shares, registered  in  Apple's
     name,  in  exchange  for the return by Apple and cancellation  of  the
     Apple Company Note; and
    
               (ii) the Company will transfer to IBM the IBM Patent Venture
     Shares, by delivery of a certificate or certificates representing  the
     IBM  Patent Venture Shares, registered in IBM's name, in exchange  for
     the return by IBM and cancellation of the IBM Company Note.
    
     2.2  Second Closing

          (a)   The  Second Closing will take place on April  15,  1996  at
     10:00  a.m.  local  time  at  the offices  of  Apple's  corporate  law
     department, 20400 Stevens Creek Blvd., Cupertino, California, or  such
     other date and place specified by agreement of Apple and IBM.
    
          (b)   At  the Second Closing, upon the terms and subject  to  the
     conditions set forth herein:
    
               (i)  Apple shall transfer to the Company the Apple Shares in
     exchange  for  which  Apple,  IBM and the  Company  shall  enter  into
     agreements pursuant to which
    
                    (A) the parties will execute the New Research Agreement
     under  which Apple's obligations under the previous Research Agreement
     are  reduced from $10 million to $5 million, payable $2.5  million  on
     January 3, 1996 and $2.5 million on October 2, 1996; and
    
                     (B)  Apple is released from any obligations under  the
     Stockholder  Agreement  and  the Apple  Support  Agreement  and  Apple
     releases   IBM  and  the  Company  from  any  obligations  under   the
     Stockholder Agreement and the Apple Support Agreement.
    
                (ii)  Apple  and the Company shall enter into a  New  Apple
     License Out agreement in substantially the form attached hereto, which
     license agreement shall supersede the Apple License Out.
    
                (iii)      IBM  intends to tightly integrate  some  of  the
     Company's frameworks as class libraries into IBM's Open Class library.
     An  initial version of this integration, called the "Starter  Set"  is
     planned  for  approximately January, 1996, and  a  second  version  is
     planned  for  approximately year end 1996  (the  "Open  Class  Starter
     Set").  IBM shall license to Apple the Open Class Starter Set pursuant
     to  a  license  agreement in substantially the form of the  New  Apple
     License Out, except that the "Last Development Date" would be December
     31, 1996.
    
                            
<PAGE>
         
         
           (iv)  If  IBM  and  Apple do not extend  their  existing  patent
     cross-license  of October 1, 1991 or otherwise enter  into  a  license
     agreement  to  provide coverage at least equal to the following,  then
     Apple and the Company shall amend the Apple Patent License to:
    
                     (A)  extend  the  applicability of "Licensed  Patents"
     under Section 1.5 of the Apple Patent License and under Section 1.5 of
     the  IBM  Patent License from an effective date of October 1, 1996  to
     December 31, 1997;
    
                     (B)  for such extended period, the scope of the grants
     thereunder  shall  be conformed to the scope of the technology  grants
     under the New Apple License Out;
    
                     (C)  confirm  IBM will permit the Company  to  license
     patents  under  the Apple Patent License to encompass  all  inventions
     created  by  the Company or otherwise licensable by IBM  necessary  to
     make, use, license and sell the "Taligent Licensed Work" under the New
     Apple License Out and in exchange Apple will license Company with  the
     right to sublicense IBM under the IBM Patent License to encompass  all
     inventions  created  by  Apple  or  otherwise  licenseable  by   Apple
     necessary for Company and IBM to make, use, license and sell "Taligent
     Licensed Work" as defined in the New Apple License Out; and
    
                     (D) confirm that the provisions of Section 5.2 of  the
     Apple  Patent  License and Section 5.2 of the IBM Patent License  will
     not  apply to the acquisition by IBM of more than fifty percent  (50%)
     of the capital stock of the Company.
    
                (v)   Apple and the Company shall amend the Apple Trademark
     License to:
    
                     (A)  change  the  scope  of "Licensed  Goods"  to  all
     Licensee's  software programs which are licensed to Licensee  pursuant
     to  the  New  Apple  License Agreement (removing  the  requirement  of
     "Qualified"); and
    
                     (B) extend the term of the Apple Trademark License  to
     be perpetual.
    
                (vi)  Apple  and  IBM shall enter into the  Patent  Venture
     Agreement.
    
     ARTICLE 3.  Conditions to Closings

     3.1  Conditions to Each Party's Obligations at Each Closing

     The  obligations of Apple, IBM and the Company to be performed at  the
First  Closing and the Second Closing are each subject to the  satisfaction
or waiver, as of each respective Closing Date, of the following conditions:
                            
<PAGE>
         
         
          (a) Governmental   Approvals.    All    Governmental    Approvals
     necessary  for  the consummation of the Transactions shall  have  been
     obtained  or  made and all waiting periods imposed by any Governmental
     Authority or Law shall have expired.
    
          (b)  No Injunctions or Litigation.  No Injunction restraining  or
     preventing  the consummation of the Transactions shall be  in  effect,
     and  no  Litigation shall be pending or threatened by  or  before  any
     Governmental Authority that would restrain or prevent the consummation
     of the Transactions.
    
          (c)  Other Closing Agreements.  The parties to each other Closing
     Agreement  shall have entered into all such other Closing  Agreements,
     each  of  which  shall be in full force and effect (except  each  such
     other  Closing Agreement may be similarly conditioned on the  entering
     into of all other Closing Agreements).
    
          (d)  Approvals.  All Approvals necessary for the consummation  of
     the Transactions shall have been obtained.
    
     3.2       Additional Condition to First Closing.

     The obligations of Apple, IBM and the Company at the First Closing are
subject to the satisfaction or waiver, as of the First Closing Date, of the
additional condition that the Company shall not be or have been on or prior
to  the  First  Closing Date a Subsidiary of IBM (other than prior  to  the
initial investment by Apple).

     3.3  Additional Condition to Second Closing.

     The  obligations of Apple, IBM and the Company at the  Second  Closing
are  subject to the satisfaction or waiver, as of the Second Closing  Date,
of the additional condition that the First Closing shall have occurred.
    
     ARTICLE 4.  Representations and Warranties

     4.1.      Representations and Warranties of the Company.

     The  Company represents and warrants to Apple and IBM that, as of  the
date of this Agreement and on and as of the Closing Date:

          (a)  Organization and Standing of the Company.  The Company is  a
     corporation  duly  organized, validly existing and  in  good  standing
     under the laws of the State of Delaware.
    
                            
<PAGE>
         
         
     (b)   Authority.   The  Company  has  all  requisite  corporate  power
     and  authority  to  enter into this Agreement and  the  other  Closing
     Agreements  and  to  consummate the Transactions.  The  execution  and
     delivery  by  the  Company of this Agreement  and  the  other  Closing
     Agreements  and  the consummation by the Company of  the  Transactions
     have  been  duly authorized by all necessary corporate action  on  the
     part  of the Company.  This Agreement and the other Closing Agreements
     have  been,  or  will  at  the Closing have been,  duly  executed  and
     delivered  by  the  Company and constitute, or  will  at  the  Closing
     constitute,  legal,  valid  and binding obligations  of  the  Company,
     enforceable  against the Company in accordance with  their  respective
     terms.   The  execution and delivery by the Company of this  Agreement
     and  the  other  Closing  Agreements do  not  and  did  not,  and  the
     consummation of the Transactions and compliance with the terms of  the
     Closing Agreements will not, conflict with, result in any violation of
     or  default  (with or without notice or lapse of time or both)  under,
     give  rise to a right of termination, cancellation or acceleration  of
     any  material obligation or to the loss of any material benefit  under
     or  result in or require the creation, imposition or extension of  any
     Lien upon any of the properties or assets of the Company under (i) any
     Contract,  (ii) any provision of the Amended and Restated  Certificate
     of  Incorporation or By-laws of the Company or (iii) any  Judgment  or
     Law,  except with respect to clauses (i) or (iii), for such conflicts,
     violations, defaults, rights or losses that, individually  or  in  the
     aggregate, would not have a material adverse effect on the Company  or
     on  the  Company's  ability  to perform  its  obligations  under  this
     Agreement  and the other Closing Agreements in accordance  with  their
     respective terms.  No Governmental Approval or Approval of  any  other
     Person is required to be obtained or made by the Company in connection
     with the execution and delivery of this Agreement or the other Closing
     Agreements  or  the  consummation  of  the  Transactions  (other  than
     Governmental Approvals (I) relating to the Transactions that  must  be
     obtained  by the Company by reason of facts peculiar to another  party
     which  such other party has not disclosed or (II) the absence of which
     would  not  have  a material adverse effect on any  party  or  on  any
     party's  ability to perform its obligations under this  Agreement  and
     the other Closing Agreements to which it is a party in accordance with
     their respective terms).
    
          (c)  Financial Statements.  Attached to this Agreement as Exhibit
     2 is an unaudited balance sheet of the Company dated October 31, 1995,
     an  audited income statement and statement of changes in cash flows of
     the  Company for its fiscal year ended December 31, 1994, an unaudited
     balance  sheet  of  the Company dated October 31, 1995  (the  "Balance
     Sheet Date") and an unaudited income statement of the Company for  the
     period  ended  October 31, 1995 (all such financial  statements  being
     collectively  referred to herein as the "Financial Statements").   The
     Financial Statements (i) are in accordance with the books and  records
     of the Company, (ii) are true, correct and complete and present fairly
     the  financial  condition of the Company at the date or dates  therein
     indicated  and  the  results of operations for the period  or  periods
     therein  specified,  and (iii) have been prepared in  accordance  with
     generally  accepted  accounting principles  applied  on  a  consistent
     basis,  except,  as  to the unaudited financial  statements,  for  the
     omission of notes thereto and normal year-end audit adjustments.
    
                            
<PAGE>
         
         
     (d)   ERISA  Plans.   Except for its "401(k) Plan," the  Company  does
     not have any Employee Pension Benefit Plan as defined in Section 3  of
     the Employee Retirement Income Security Act of 1974, as amended.
    
          (e)  Patent Agreements.  The Existing Patent Licenses are all  of
     the  contracts, agreements, and instruments to which the Company is  a
     party  relating to patents, patent applications or inventions  (except
     for employee confidentiality and invention agreements).
    
     4.2.      Representations and Warranties of Apple.

     Apple  represents  and warrants to IBM that as of  the  date  of  this
Agreement and as of the Closing Date:

          (a)   Organization  and Standing.  Apple is  a  corporation  duly
     organized, validly existing and in good standing under the laws of the
     jurisdiction of its incorporation.
    
          (b)   Authority.   Apple has all requisite  corporate  power  and
     corporate authority to enter into this Agreement and the other Closing
     Agreements  and  to  consummate the Transactions.  The  execution  and
     delivery  by Apple of this Agreement and the other Closing  Agreements
     and  the  consummation  by Apple of the Transactions  have  been  duly
     authorized  by  all necessary corporate action on the part  of  Apple.
     This Agreement and the other Closing Agreements have been, or will  at
     the  Closing  have  been,  duly executed and delivered  by  Apple  and
     constitute,  or will at the Closing constitute, its legal,  valid  and
     binding  obligations, enforceable against it in accordance with  their
     respective terms.  No Governmental Approval or Approval of  any  other
     Person  is  required to be obtained or made by Apple  or  any  of  its
     Affiliates  in  connection with the execution  and  delivery  of  this
     Agreement or the other Closing Agreements or the consummation  of  the
     Transactions (other than under Governmental Approvals (I) relating  to
     the  Transactions that must be obtained by Apple by  reason  of  facts
     peculiar to another party which such other party has not disclosed  or
     (II) the absence of which would not have a material adverse effect  on
     any  party or on any party's ability to perform its obligations  under
     this Agreement and the other Closing Agreements to which it is a party
     in accordance with their respective terms).
    
          (c)    Encumbrances.   Apple  is  the  record  holder  and   sole
     beneficial  owner  of the Apple Shares being transferred  pursuant  to
     this Agreement and such Apple Shares are free and clear of any Lien.
    
     4.3       Representations and Warranties of IBM.

     IBM  represents  and warrants to Apple that as of  the  date  of  this
Agreement and as of the Closing Date:
                            
<PAGE>
         
         
     (a)    Organization   and  Standing.   IBM  is  a   corporation   duly
     organized, validly existing and in good standing under the laws of the
     jurisdiction of its incorporation.
    
          (b)   Authority.   IBM  has  all requisite  corporate  power  and
     corporate authority to enter into this Agreement and the other Closing
     Agreements  and  to  consummate the Transactions.  The  execution  and
     delivery by IBM of this Agreement and the other Closing Agreements and
     the   consummation  by  Apple  of  the  Transactions  have  been  duly
     authorized  by  all necessary corporate action on the part  of  IBM  .
     This Agreement and the other Closing Agreements have been, or will  at
     the  Closing  have  been,  duly executed  and  delivered  by  IBM  and
     constitute,  or will at the Closing constitute, its legal,  valid  and
     binding  obligations, enforceable against it in accordance with  their
     respective terms.  No Governmental Approval or Approval of  any  other
     Person  is  required to be obtained or made by Apple  or  any  of  its
     Affiliates  in  connection with the execution  and  delivery  of  this
     Agreement or the other Closing Agreements or the consummation  of  the
     Transactions (other than under Governmental Approvals (I) relating  to
     the  Transactions that must be obtained by Apple by  reason  of  facts
     peculiar to another party which such other party has not disclosed  or
     (II) the absence of which would not have a material adverse effect  on
     any  party or on any party's ability to perform its obligations  under
     this Agreement and the other Closing Agreements to which it is a party
     in accordance with their respective terms).
    
     ARTICLE 5.  Covenants Pending the Closing

     5.1  Operations of the Company.

     From  the  date  of  this Agreement to the Second  Closing  Date,  the
Company  covenants  that  (except  (i) as expressly  contemplated  by  this
Agreement,  or  (ii) to the extent that the other parties  shall  otherwise
consent  in  writing) that the Company shall carry on its business  in  the
usual,  regular  and ordinary course in substantially the  same  manner  as
heretofore conducted.

     5.2  Restructuring Cooperation

          (a)   The  parties  will cause the Company  to  (i)  provide  the
     employees who are terminated in connection with the Restructuring with
     60  days  written  notice  of  termination  and  separation  benefits,
     including  JVAR payouts and MPAP 10 payments approved by  the  parties
     (ii)  and  take  the  other related actions make  the  other  payments
     approved by the Board of Directors of the Company on November 30, 1995
     (hereinafter  "Restructuring Costs").  As between Apple and  IBM,  IBM
     shall  be  responsible  for all Restructuring  Costs,  and  IBM  shall
     indemnify  Apple with respect to any claim by any third party  against
     Apple  with  respect to any obligation of the Company existing  on  or
     arising after November 30, 1995 (other than obligations undertaken  by
     Apple pursuant to the Closing Agreements).
    
                            
<PAGE>
         
         
         (b) As part of the Restructuring, the Company management  and  IBM
     will be determining which Company employees will be required to remain
     with  the  Company  to  help the Company accomplish  its  new  mission
     (hereinafter "Core Team").  The Company will identify the "Core  Team"
     to Apple.  IBM and Apple may wish to hire other Company employees, not
     designated  as the "Core Team".  While Apple and IBM will not  require
     the  others  permission  or review for any hiring  decisions,  neither
     Apple nor IBM will interfere with the attempt by the Company to retain
     the Company employees designated as the Core Team.
    
     5.3  Establishment of Patent Licensing Company

          (a)   In  order  to  maximize the value of the  Company's  patent
     portfolio and to attempt to recover the cost of their advances to  the
     Company, the parties will establish a separate legal entity to  manage
     and  license the patent portfolio now held by the Company (the "Patent
     Venture").
    
          (b)   The  Patent Venture will be established prior to the  First
     Closing  and will initially be owned 100% by the Company.  The Company
     will  inventory all of the Existing Patents by January 26, 1996.   The
     Company will use its best efforts to cause all Existing Patents to  be
     memorialized  to  written invention disclosures by January  29,  1996.
     The  Company  will  assign ownership of the Existing  Patents  to  the
     Patent  Venture  on  or before January 29, 1996, subject  to  Existing
     Patent Licenses.
    
          (c)   The details of the management of the Patent Venture and the
     rights  and  obligations  of each party with respect  ot  such  Patent
     Venture will be as defined in the Patent Venture Agreement.
    
          (d)  Immediately following the First Closing, until the execution
     of the Patent Venture Agreement, the following provisions shall govern
     the Patent Venture:
    
                (i)  Apple and IBM will establish a management committee of
     equal  representation which will manage the Patent Venture,  determine
     licensing policy, and hire employees.  All significant decisions  will
     be  subject to unanimous consent by Apple and IBM.  Apple and IBM will
     make  an equal initial capital contribution (amount to be determined),
     will split equally the costs of formation, and will contribute equally
     on  a  quarterly  basis operating funds for the Patent  Venture.   The
     Patent  Venture will provide to each of Apple and IBM full  access  to
     all  information concerning its assets and financial  condition.   The
     Company will provide the Patent Venture full access and cooperation in
     ensuring  the  perfection  of  the broadest  possible  rights  in  the
     portfolio.
    
                (ii)  Unless  otherwise  agreed, the  Patent  Venture  will
     terminate,  and the assets distributed to and liabilities  assumed  by
     Apple and IBM (or their designees) as follows:
    
                            
<PAGE>
         
         
                (A)  On  or  before September 2, 1996, the  Patent  Venture
     will  provide  to  each of Apple and IBM a schedule  of  the  Existing
     Patents.   Such  schedule  will enumerate each  such  Existing  Patent
     separately, provided that rights to "counterparts" shall be considered
     to be part of the related domestic Existing Patent.  In the event that
     two  or  more  U.S. Patents or patent applications have been  combined
     into  a  single patent application outside the U.S., such U.S. Patents
     and/or  patent  applications shall be considered as a single  Existing
     Patent for the purposes of this schedule.
    
                    (B) On September 16, 1996, Apple and IBM will divide up
     the  portfolio  by means of alternate picks: one party will  have  the
     opportunity to select a single Existing Patent to be assigned  to  it;
     followed by the other party selecting another single Existing  Patent;
     and continuing in turn until each Existing Patent in the portfolio has
     been  selected  by one or the other party.  The determination  of  who
     will select the first Existing Patent will be made by a toss of coin.
    
                     (C)   Upon completion of the selection process,  Apple
     and  IBM  shall  cooperate to initiate a bid  process  to  obtain  the
     highest  possible third party bid for the entire patent  portfolio  of
     the  Venture.   This process shall be completed and  the  highest  bid
     obtained on or before January 16, 1997.
    
                     (D)  Within ten (10) days of the completion of the bid
     process  and  no later than January 26, 1997, each of  Apple  and  IBM
     shall  simultaneously  declare to the other  in  writing  whether  the
     highest  bid  is  acceptable to it or not acceptable to  it  with  the
     following results:
    
                         (1)  If both Apple and IBM agree, then the highest
     bid  will  be  accepted and the entire portfolio  transferred  by  the
     Patent Venture to the highest bidder subject to all existing licenses.
     Licenses   granted  to third parties during the  term  of  the  Patent
     Venture  ("Venture Licenses") will be assigned to and future  proceeds
     therefrom will benefit the highest bidder.
    
                          (2)   If  both Apple and IBM disagree,  then  the
     Patent  Venture  will  assign  to each of  Apple  and  IBM  (or  their
     respective  designees)  the  Patents  so  selected,  subject  to   any
     liabilities in the form of licenses set forth in Section  5.3(b)   and
     the Venture Licenses.  Each Venture License will be assigned to one or
     the other of Apple and IBM as appropriate, or to both, but in any case
     the  future  proceeds from each such Venture License will  be  equally
     split between the Apple and IBM.
    
                            
<PAGE>
         
         
                      (3)    If  one  of  Apple  or  IBM  agrees  and   one
     disagrees, then the portfolio shall be transferred as set forth in (2)
     above,  provided  however that the disagreeing party  shall  have  the
     option  within  ten (10) days from the receipt of the  other  parties'
     declaration  to inform the other party that it will pay to  the  other
     party one-half of the highest bid and in this event the Patent Venture
     will transfer the entire patent portfolio to the disagreeing party  or
     its designee as set forth in (1) above.
    
                     (E)  The other assets of the Patent Venture which  are
     not  Existing  Patent or Venture Licenses will be liquidated  and  the
     proceeds distributed equally net of the payment of remaining debts  or
     obligations.   Notwithstanding the provisions of  Section  (D)  above,
     upon  request of either Apple or IBM, Apple and IBM agree to  continue
     the Patent Venture as a legal entity to manage the separate portfolios
     for a reasonable period of time (not to exceed 6 months) necessary for
     an  orderly  assignment  of  Existing Patent  assets  to  third  party
     designees of the parties.
    
     5.4  Obligations Suspended under Research Agreement, etc.

     Unless and until this Agreement is terminated pursuant to Section  6.1
without the Second Closing having occurred:

          (a)   Apple  and IBM agree to suspend each obligation  under  the
     Research  Agreement  or  Apple License  Out  which  would  not  be  an
     obligation  under  the  New Research Agreement  or  New  License  Out,
     including without limitation any funding amounts required to  be  paid
     by  Apple  under the Research Agreement but not required  to  be  paid
     under the New Research Agreement.
    
          (b)   Apple  and  IBM agree that neither party  will  invoke  any
     default  or similar mechanism under the Stockholder Agreement  or  the
     Company's Restated Certificate of Incorporation or By-laws.
    
     5.5  Further Actions

     IBM shall not cause or permit the Company to become a Subsidiary of IBM
prior to the First Closing Date.  Apple shall not cause or permit  any Lien
to  be  created with respect to the Apple Shares prior to the  Second Closing
Date (other than any created as a result of the execution of  this Agreement).
In  addition, each party shall take all actions  commercially reasonable  or
appropriate to ensure that the conditions  to  Closing  set forth  herein to
be satisfied by such party are satisfied on  or  prior  to each  Closing Date
and to obtain (and cooperate with the other  parties  in obtaining) any
                            
<PAGE>

Governmental Approvals required to be obtained or made by it in  connection
with  any  of  the  Transactions.  The Company shall afford  to  the  other
parties  and their representatives access to properties, books and records,
subject  to appropriate confidentiality restrictions, sufficient to  permit
such  other  party  to  perform adequately its due diligence  and  business
reviews relating to the Company.

     ARTICLE 6.  Miscellaneous

     6.1  Termination.

     If the  Second Closing shall not have occurred on or prior to June 30,
1996,  this Agreement and all obligations of the parties hereunder,  except
obligations  under  Section  5.3(d)  and  Section  6.12,  shall  terminate;
provided  that no such termination shall relieve any party of any liability
it  may have for any breach of this Agreement occurring prior to that date.
Following any such termination, if the Patent Venture shall have previously
been formed, it will terminate in accordance with the provisions of Section
5.3(d)(ii).

     6.2  Notices.

     Except  as expressly provided herein, notices and other communications
provided for herein shall be in writing and shall be delivered by  hand  or
overnight  courier  service, mailed or sent by telex, graphic  scanning  or
other  telegraphic  communications  equipment  of  the  sending  party,  as
follows:
          (a) if to the Company:
    
                    Taligent, Inc.
                    10201 N. De Anza Blvd.
                    Cupertino, CA 95014-2233
                    Attention: General Counsel
                    Telephone: (408) 255-2525
                    Telecopier: (408) 777-5280
          (b) if to Apple:
    
                    Apple Computer, Inc.
                    1 Infinite Loop
                    Cupertino, CA 95014
                    Attention: General Counsel
                    Telephone:  (408) 996-1010
                    Telecopier:  (408) 974-8530
                            
<PAGE>
         
         
     (c) if to IBM:
    
                    International Business Machines Corporate
                    Counsel - Software Solutions
                    Box 100, Route 100
                    Somers, NY 10589
                    Telephone:  (914) 766-1675
                    Telecopier:  (914) 766-1869
                   
or  to  such other address or attention of such other person as  any  party
shall  advise  the  other  parties  in  writing.   All  notices  and  other
communications given to a party hereto in accordance with the provisions of
this Agreement shall be deemed to have been given on the date of receipt.

     6.3  Applicable Law; Waiver of Jury Trials; Consent to Jurisdiction.

     The validity, construction and performance of this Agreement shall  be
governed by and construed in accordance with the laws of the State  of  New
York,  applicable  to contracts executed in and performed  entirely  within
such  State,  without  reference to any choice of law  principles  of  such
State.  With respect to any Litigation arising out of this Agreement or any
Transaction, the parties expressly waive any right they may have to a  jury
trial  and agree that any such Litigation shall be tried by a judge without
a jury.  Each party agrees to non-exclusive personal jurisdiction and venue
in the United States District Court for the Northern District of California
(and any California State court within that District) and the United States
District  Court  for the Southern District of New York (and  any  New  York
State court within that District) for that purpose, and appoints the person
set  forth  in  Section 6.2 as its agent for service  of  process  in  such
jurisdiction.

     6.4  Severability.

     If  any  provision  of  this Agreement shall be held  to  be  illegal,
invalid  or  unenforceable, that provision will be enforced to the  maximum
extent  permissible  so as to effect the intent of  the  parties,  and  the
validity, legality and enforceability of the remaining provisions shall not
in  any  way  be affected or impaired thereby.  If necessary to effect  the
intent  of the parties, the parties will negotiate in good faith  to  amend
this  Agreement  to  replace  the unenforceable language  with  enforceable
language which as closely as possible reflects such intent.

     6.5  Amendments.

     This  Agreement may be modified or waived only by a written  amendment
signed by persons authorized to so bind each party.
                            
<PAGE>
    
     6.6  Waiver.

     The  waiver  by  any  party  of  any instance  of  any  other  party's
noncompliance  with any obligation or responsibility herein  shall  not  be
deemed  a  waiver  of other instances or of any party's remedies  for  such
noncompliance.

     6.7  Counterparts; Effectiveness.

     This  Agreement  may be executed in one or more counterparts,  all  of
which  shall  be  considered one and the same agreement, and  shall  become
effective  when  one or more counterparts shall have been  signed  by  each
party  and  delivered  to  each other party.  This Agreement  shall  become
effective  upon  execution by Apple and IBM; provided that in  that  event,
Apple and IBM agree to cause Taligent to execute this Agreement as soon  as
practicable after January 3, 1996.

     6.8.      Entire Agreement.

     The  provisions of this Agreement and the other Closing Agreements set
forth  the entire agreement and understanding among the parties as  to  the
subject  matter hereof and supersede all prior agreements, oral or written,
and  all  other communications between the parties relating to the  subject
matter hereof.

     6.9.      Assignment.

          (a)  No party shall assign this Agreement or any of its rights or
     obligations hereunder without the prior written consent of  the  other
     parties,  except  that no such consent shall be required  for  (i)  an
     assignment to a wholly-owned direct or indirect Subsidiary of a party,
     or  a  parent corporation of which such party is a wholly-owned direct
     or indirect Subsidiary, provided that no such assignment shall relieve
     such  party  of  any obligations hereunder; or (ii) an  assignment  by
     operation of law in connection with a merger or consolidation of  such
     party.
    
          (b)   Any attempted assignment of this Agreement in violation  of
     this Section shall be void and of no effect.
    
          (c)   This Agreement shall be binding upon, inure to the  benefit
     of  and  be  enforceable by the parties hereto  and  their  respective
     successors and permitted assigns.
    
     6.10.     No Third-Party Beneficiaries.

     This  Agreement  is  for  the sole benefit of the  parties  and  their
permitted assigns and nothing herein expressed or implied shall give or  be
construed  to give to any Person, other than the parties and such  assigns,
any legal or equitable rights hereunder.
                            
<PAGE>
    
     6.11.     Remedies.

          (a)   In  no event will any party be liable to another party  for
     incidental  or special damages regardless of the form of action,  lost
     profits, lost savings or any other consequential damages, even if such
     party  has  been advised of the possibility of such damages, resulting
     from the breach of its obligations under any Closing Agreement or from
     the  use  of  any confidential or other information or  any  items  or
     products supplied pursuant to the Closing Agreements.
    
          (b)   Because the breach by any party of the provisions  of  this
     Agreement  would  cause irreparable harm and significant  injury  that
     would  be  difficult  to  ascertain and would not  be  compensable  by
     damages  alone, the parties agree that each party will have the  right
     to  enforce  such  provisions by Injunction, specific  performance  or
     other  equitable  relief without prejudice to  any  other  rights  and
     remedies  the  enforcing party may have.  The  reference  to  specific
     Sections in this Section is not a waiver of any party's rights to seek
     equitable relief for breaches of other Sections.
    
     6.12.  Expenses.

          (a)   Whether or not any of the Transactions are consummated, all
     costs  and expenses incurred in connection with the Closing Agreements
     and the Transactions shall be paid by the party incurring such cost or
     expense, except as the parties shall otherwise agree.
    
          (b)  The provisions of this Section shall remain operative and in
     full  force and effect regardless of the expiration of this  Agreement
     or the consummation of the Transactions.
    
     6.13      Construction.

     This Agreement has been negotiated by the parties and their respective
counsel  and  will be fairly interpreted in accordance with its  terms  and
without any strict construction in favor of or against any party.
                            
<PAGE>
    
IN  WITNESS  WHEREOF, the Company, Apple and IBM have  duly  executed  this
Agreement as of the day and year first above written.
                                  
                                   TALIGENT, INC.
                                  
                                  
                                  
                                   By:  /s/ Deborah S. Coutant
                                   Name:  Deborah S. Coutant
                                   Title:  General Manager and CEO
                                  
                                   APPLE COMPUTER, INC.
                                  
                                  
                                  
                                   By:/s/David C. Nagel
                                   Name:  David C. Nagel
                                   Title:  Senior V.P., Worldwide R&D
                                  
                                   INTERNATIONAL BUSINESS MACHINES
                                   CORPORATION
                                  
                                  
                                  
                                   By:  /s/ R.L. Jones
                                   Name:  R.L. Jones
                                   Title: Software Group Controller
                            
<PAGE>
    
    
Exhibit List

     Exhibit 1:     Form of New Apple License Agreement
     Exhibit 2:     Financial Statements of the Company