{"id":43160,"date":"2015-09-17T11:25:58","date_gmt":"2015-09-17T16:25:58","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-legal\/contracts\/uncategorized\/agreement-and-plan-of-merger-yahoo-inc-and-egroups-inc.html"},"modified":"2015-09-17T11:25:58","modified_gmt":"2015-09-17T16:25:58","slug":"agreement-and-plan-of-merger-yahoo-inc-and-egroups-inc","status":"publish","type":"corporate_contracts","link":"https:\/\/corporate.findlaw.com\/contracts\/planning\/agreement-and-plan-of-merger-yahoo-inc-and-egroups-inc.html","title":{"rendered":"Agreement and Plan of Merger – Yahoo! Inc. and eGroups Inc."},"content":{"rendered":"
 AGREEMENT AND PLAN OF MERGER
 \ndated as of June 27, 2000
 \namong
 \nYAHOO! INC.,
 \nHERMES ACQUISITION CORPORATION
 \nand
 \nEGROUPS, INC.  <\/b><\/font><\/p>\n\n
\n
 TABLE OF CONTENTS  <\/b><\/font><\/p>\n\n<\/pre>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
 <\/font><\/th>\n <\/font><\/th>\n <\/font><\/th>\n <\/font><\/th>\nPage<\/b><\/font><\/p>\n
<\/th>\n<\/tr>\n
ARTICLE I THE MERGER<\/font><\/td>\n <\/font><\/td>\n1<\/font><\/td>\n<\/tr>\n
 <\/font><\/td>\nSECTION 1.1<\/font><\/td>\n <\/font><\/td>\nEFFECTIVE TIME OF THE MERGER<\/font><\/td>\n <\/font><\/td>\n1<\/font><\/td>\n<\/tr>\n
 <\/font><\/td>\nSECTION 1.2<\/font><\/td>\n <\/font><\/td>\nCLOSING<\/font><\/td>\n <\/font><\/td>\n2<\/font><\/td>\n<\/tr>\n
 <\/font><\/td>\nSECTION 1.3<\/font><\/td>\n <\/font><\/td>\nEFFECTS OF THE MERGER<\/font><\/td>\n <\/font><\/td>\n2<\/font><\/td>\n<\/tr>\n
 <\/font><\/td>\nSECTION 1.4<\/font><\/td>\n <\/font><\/td>\nDIRECTORS AND OFFICERS<\/font><\/td>\n <\/font><\/td>\n2<\/font><\/td>\n<\/tr>\n
ARTICLE II CONVERSION OF SECURITIES<\/font><\/td>\n <\/font><\/td>\n2<\/font><\/td>\n<\/tr>\n
 <\/font><\/td>\nSECTION 2.1<\/font><\/td>\n <\/font><\/td>\nCONVERSION OF CAPITAL STOCK<\/font><\/td>\n <\/font><\/td>\n2<\/font><\/td>\n<\/tr>\n
 <\/font><\/td>\nSECTION 2.2<\/font><\/td>\n <\/font><\/td>\nESCROW AGREEMENT<\/font><\/td>\n <\/font><\/td>\n4<\/font><\/td>\n<\/tr>\n
 <\/font><\/td>\nSECTION 2.3<\/font><\/td>\n <\/font><\/td>\nDISSENTING SHARES<\/font><\/td>\n <\/font><\/td>\n4<\/font><\/td>\n<\/tr>\n
 <\/font><\/td>\nSECTION 2.4<\/font><\/td>\n <\/font><\/td>\nEXCHANGE OF CERTIFICATES<\/font><\/td>\n <\/font><\/td>\n5<\/font><\/td>\n<\/tr>\n
 <\/font><\/td>\nSECTION 2.5<\/font><\/td>\n <\/font><\/td>\nDISTRIBUTIONS WITH RESPECT TO UNEXCHANGED SHARES<\/font><\/td>\n <\/font><\/td>\n6<\/font><\/td>\n<\/tr>\n
 <\/font><\/td>\nSECTION 2.6<\/font><\/td>\n <\/font><\/td>\nTAX AND ACCOUNTING CONSEQUENCES<\/font><\/td>\n <\/font><\/td>\n6<\/font><\/td>\n<\/tr>\n
ARTICLE III REPRESENTATIONS AND WARRANTIES OF TARGET<\/font><\/td>\n <\/font><\/td>\n6<\/font><\/td>\n<\/tr>\n
 <\/font><\/td>\nSECTION 3.1<\/font><\/td>\n <\/font><\/td>\nORGANIZATION OF TARGET AND ITS SUBSIDIARIES<\/font><\/td>\n <\/font><\/td>\n6<\/font><\/td>\n<\/tr>\n
 <\/font><\/td>\nSECTION 3.2<\/font><\/td>\n <\/font><\/td>\nTARGET CAPITAL STRUCTURE<\/font><\/td>\n <\/font><\/td>\n7<\/font><\/td>\n<\/tr>\n
 <\/font><\/td>\nSECTION 3.3<\/font><\/td>\n <\/font><\/td>\nAUTHORITY; NO CONFLICT; REQUIRED FILINGS AND CONSENTS<\/font><\/td>\n <\/font><\/td>\n9<\/font><\/td>\n<\/tr>\n
 <\/font><\/td>\nSECTION 3.4<\/font><\/td>\n <\/font><\/td>\nFINANCIAL STATEMENTS; ABSENCE OF UNDISCLOSED LIABILITIES<\/font><\/td>\n <\/font><\/td>\n10<\/font><\/td>\n<\/tr>\n
 <\/font><\/td>\nSECTION 3.5<\/font><\/td>\n <\/font><\/td>\nTAX MATTERS<\/font><\/td>\n <\/font><\/td>\n10<\/font><\/td>\n<\/tr>\n
 <\/font><\/td>\nSECTION 3.6<\/font><\/td>\n <\/font><\/td>\nABSENCE OF CERTAIN CHANGES OR EVENTS<\/font><\/td>\n <\/font><\/td>\n12<\/font><\/td>\n<\/tr>\n
 <\/font><\/td>\nSECTION 3.7<\/font><\/td>\n <\/font><\/td>\nTITLE AND RELATED MATTERS<\/font><\/td>\n <\/font><\/td>\n13<\/font><\/td>\n<\/tr>\n
 <\/font><\/td>\nSECTION 3.8<\/font><\/td>\n <\/font><\/td>\nPROPRIETARY RIGHTS<\/font><\/td>\n <\/font><\/td>\n13<\/font><\/td>\n<\/tr>\n
 <\/font><\/td>\nSECTION 3.9<\/font><\/td>\n <\/font><\/td>\nEMPLOYEE BENEFIT PLANS<\/font><\/td>\n <\/font><\/td>\n15<\/font><\/td>\n<\/tr>\n
 <\/font><\/td>\nSECTION 3.10<\/font><\/td>\n <\/font><\/td>\nBANK ACCOUNTS<\/font><\/td>\n <\/font><\/td>\n16<\/font><\/td>\n<\/tr>\n
 <\/font><\/td>\nSECTION 3.11<\/font><\/td>\n <\/font><\/td>\nCONTRACTS<\/font><\/td>\n <\/font><\/td>\n16<\/font><\/td>\n<\/tr>\n
 <\/font><\/td>\nSECTION 3.12<\/font><\/td>\n <\/font><\/td>\nORDERS, COMMITMENTS AND RETURNS<\/font><\/td>\n <\/font><\/td>\n18<\/font><\/td>\n<\/tr>\n
 <\/font><\/td>\nSECTION 3.13<\/font><\/td>\n <\/font><\/td>\nCOMPLIANCE WITH LAW<\/font><\/td>\n <\/font><\/td>\n18<\/font><\/td>\n<\/tr>\n
 <\/font><\/td>\nSECTION 3.14<\/font><\/td>\n <\/font><\/td>\nLABOR DIFFICULTIES; NO DISCRIMINATION<\/font><\/td>\n <\/font><\/td>\n18<\/font><\/td>\n<\/tr>\n
 <\/font><\/td>\nSECTION 3.15<\/font><\/td>\n <\/font><\/td>\nTRADE REGULATION<\/font><\/td>\n <\/font><\/td>\n19<\/font><\/td>\n<\/tr>\n
 <\/font><\/td>\nSECTION 3.16<\/font><\/td>\n <\/font><\/td>\nINSIDER TRANSACTIONS<\/font><\/td>\n <\/font><\/td>\n19<\/font><\/td>\n<\/tr>\n
 <\/font><\/td>\nSECTION 3.17<\/font><\/td>\n <\/font><\/td>\nEMPLOYEES, INDEPENDENT CONTRACTORS AND CONSULTANTS<\/font><\/td>\n <\/font><\/td>\n19<\/font><\/td>\n<\/tr>\n
 <\/font><\/td>\nSECTION 3.18<\/font><\/td>\n <\/font><\/td>\nINSURANCE<\/font><\/td>\n <\/font><\/td>\n19<\/font><\/td>\n<\/tr>\n
 <\/font><\/td>\nSECTION 3.19<\/font><\/td>\n <\/font><\/td>\nACCOUNTS RECEIVABLE<\/font><\/td>\n <\/font><\/td>\n19<\/font><\/td>\n<\/tr>\n
 <\/font><\/td>\nSECTION 3.20<\/font><\/td>\n <\/font><\/td>\nLITIGATION<\/font><\/td>\n <\/font><\/td>\n19<\/font><\/td>\n<\/tr>\n
 <\/font><\/td>\nSECTION 3.21<\/font><\/td>\n <\/font><\/td>\nGOVERNMENTAL AUTHORIZATIONS AND REGULATIONS<\/font><\/td>\n <\/font><\/td>\n20<\/font><\/td>\n<\/tr>\n<\/table>\n
i<\/font><\/p>\n
\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
 <\/font><\/td>\nSECTION 3.22<\/font><\/td>\n <\/font><\/td>\nNO OTHER INVESTMENTS<\/font><\/td>\n <\/font><\/td>\n20<\/font><\/td>\n<\/tr>\n
 <\/font><\/td>\nSECTION 3.23<\/font><\/td>\n <\/font><\/td>\nCOMPLIANCE WITH ENVIRONMENTAL REQUIREMENTS<\/font><\/td>\n <\/font><\/td>\n20<\/font><\/td>\n<\/tr>\n
 <\/font><\/td>\nSECTION 3.24<\/font><\/td>\n <\/font><\/td>\nCORPORATE DOCUMENTS<\/font><\/td>\n <\/font><\/td>\n20<\/font><\/td>\n<\/tr>\n
 <\/font><\/td>\nSECTION 3.25<\/font><\/td>\n <\/font><\/td>\nNO BROKERS<\/font><\/td>\n <\/font><\/td>\n20<\/font><\/td>\n<\/tr>\n
 <\/font><\/td>\nSECTION 3.26<\/font><\/td>\n <\/font><\/td>\nPOOLING OF INTERESTS<\/font><\/td>\n <\/font><\/td>\n20<\/font><\/td>\n<\/tr>\n
 <\/font><\/td>\nSECTION 3.27<\/font><\/td>\n <\/font><\/td>\nADVERTISERS, CUSTOMERS AND SUPPLIERS<\/font><\/td>\n <\/font><\/td>\n21<\/font><\/td>\n<\/tr>\n
 <\/font><\/td>\nSECTION 3.28<\/font><\/td>\n <\/font><\/td>\nTARGET ACTION<\/font><\/td>\n <\/font><\/td>\n21<\/font><\/td>\n<\/tr>\n
 <\/font><\/td>\nSECTION 3.29<\/font><\/td>\n <\/font><\/td>\nOFFERS<\/font><\/td>\n <\/font><\/td>\n21<\/font><\/td>\n<\/tr>\n
 <\/font><\/td>\nSECTION 3.30<\/font><\/td>\n <\/font><\/td>\nPRIVACY LAWS AND POLICIES COMPLIANCE<\/font><\/td>\n <\/font><\/td>\n21<\/font><\/td>\n<\/tr>\n
 <\/font><\/td>\nSECTION 3.31<\/font><\/td>\n <\/font><\/td>\nDISCLOSURE<\/font><\/td>\n <\/font><\/td>\n21<\/font><\/td>\n<\/tr>\n
 <\/font><\/td>\nSECTION 3.32<\/font><\/td>\n <\/font><\/td>\nHEARING NOTICE AND INFORMATION STATEMENT; REGISTRATION STATEMENT; PROXY STATEMENT\/ PROSPECTUS<\/font><\/td>\n <\/font><\/td>\n21<\/font><\/td>\n<\/tr>\n
ARTICLE IV REPRESENTATIONS AND WARRANTIES OF ACQUIROR AND SUB<\/font><\/td>\n <\/font><\/td>\n22<\/font><\/td>\n<\/tr>\n
 <\/font><\/td>\nSECTION 4.1<\/font><\/td>\n <\/font><\/td>\nORGANIZATION OF ACQUIROR AND SUB<\/font><\/td>\n <\/font><\/td>\n22<\/font><\/td>\n<\/tr>\n
 <\/font><\/td>\nSECTION 4.2<\/font><\/td>\n <\/font><\/td>\nVALID ISSUANCE OF ACQUIROR COMMON STOCK<\/font><\/td>\n <\/font><\/td>\n22<\/font><\/td>\n<\/tr>\n
 <\/font><\/td>\nSECTION 4.3<\/font><\/td>\n <\/font><\/td>\nAUTHORITY; NO CONFLICT; REQUIRED FILINGS AND CONSENTS<\/font><\/td>\n <\/font><\/td>\n22<\/font><\/td>\n<\/tr>\n
 <\/font><\/td>\nSECTION 4.4<\/font><\/td>\n <\/font><\/td>\nSEC FILINGS; FINANCIAL STATEMENTS<\/font><\/td>\n <\/font><\/td>\n23<\/font><\/td>\n<\/tr>\n
 <\/font><\/td>\nSECTION 4.5<\/font><\/td>\n <\/font><\/td>\nPOOLING OF INTERESTS<\/font><\/td>\n <\/font><\/td>\n24<\/font><\/td>\n<\/tr>\n
 <\/font><\/td>\nSECTION 4.6<\/font><\/td>\n <\/font><\/td>\nINTERIM OPERATIONS OF SUB<\/font><\/td>\n <\/font><\/td>\n24<\/font><\/td>\n<\/tr>\n
 <\/font><\/td>\nSECTION 4.7<\/font><\/td>\n <\/font><\/td>\nSHAREHOLDERS CONSENT<\/font><\/td>\n <\/font><\/td>\n24<\/font><\/td>\n<\/tr>\n
 <\/font><\/td>\nSECTION 4.8<\/font><\/td>\n <\/font><\/td>\nHEARING NOTICE AND INFORMATION STATEMENT; REGISTRATION STATEMENT; PROXY STATEMENT\/PROSPECTUS<\/font><\/td>\n <\/font><\/td>\n24<\/font><\/td>\n<\/tr>\n
ARTICLE V PRECLOSING COVENANTS OF TARGET<\/font><\/td>\n <\/font><\/td>\n24<\/font><\/td>\n<\/tr>\n
 <\/font><\/td>\nSECTION 5.1<\/font><\/td>\n <\/font><\/td>\nFAIRNESS HEARING AND PERMIT<\/font><\/td>\n <\/font><\/td>\n24<\/font><\/td>\n<\/tr>\n
 <\/font><\/td>\nSECTION 5.2<\/font><\/td>\n <\/font><\/td>\nAPPROVAL OF TARGET STOCKHOLDERS<\/font><\/td>\n <\/font><\/td>\n25<\/font><\/td>\n<\/tr>\n
 <\/font><\/td>\nSECTION 5.3<\/font><\/td>\n <\/font><\/td>\nADVICE OF CHANGES<\/font><\/td>\n <\/font><\/td>\n25<\/font><\/td>\n<\/tr>\n
 <\/font><\/td>\nSECTION 5.4<\/font><\/td>\n <\/font><\/td>\nOPERATION OF BUSINESS<\/font><\/td>\n <\/font><\/td>\n25<\/font><\/td>\n<\/tr>\n
 <\/font><\/td>\nSECTION 5.5<\/font><\/td>\n <\/font><\/td>\nACCESS TO INFORMATION<\/font><\/td>\n <\/font><\/td>\n27<\/font><\/td>\n<\/tr>\n
 <\/font><\/td>\nSECTION 5.6<\/font><\/td>\n <\/font><\/td>\nSATISFACTION OF CONDITIONS PRECEDENT<\/font><\/td>\n <\/font><\/td>\n28<\/font><\/td>\n<\/tr>\n
 <\/font><\/td>\nSECTION 5.7<\/font><\/td>\n <\/font><\/td>\nOTHER NEGOTIATIONS<\/font><\/td>\n <\/font><\/td>\n28<\/font><\/td>\n<\/tr>\n
 <\/font><\/td>\nSECTION 5.8<\/font><\/td>\n <\/font><\/td>\nTERMINATION OF LEASE<\/font><\/td>\n <\/font><\/td>\n28<\/font><\/td>\n<\/tr>\n
ARTICLE VI PRECLOSING AND OTHER COVENANTS OF ACQUIROR AND SUB<\/font><\/td>\n <\/font><\/td>\n28<\/font><\/td>\n<\/tr>\n
 <\/font><\/td>\nSECTION 6.1<\/font><\/td>\n <\/font><\/td>\nADVICE OF CHANGES<\/font><\/td>\n <\/font><\/td>\n28<\/font><\/td>\n<\/tr>\n
 <\/font><\/td>\nSECTION 6.2<\/font><\/td>\n <\/font><\/td>\nRESERVATION OF ACQUIROR COMMON STOCK<\/font><\/td>\n <\/font><\/td>\n28<\/font><\/td>\n<\/tr>\n
 <\/font><\/td>\nSECTION 6.3<\/font><\/td>\n <\/font><\/td>\nSATISFACTION OF CONDITIONS PRECEDENT<\/font><\/td>\n <\/font><\/td>\n28<\/font><\/td>\n<\/tr>\n
 <\/font><\/td>\nSECTION 6.4<\/font><\/td>\n <\/font><\/td>\nSTOCK OPTIONS AND WARRANTS<\/font><\/td>\n <\/font><\/td>\n29<\/font><\/td>\n<\/tr>\n
 <\/font><\/td>\nSECTION 6.5<\/font><\/td>\n <\/font><\/td>\nNASDAQ NATIONAL MARKET LISTING<\/font><\/td>\n <\/font><\/td>\n29<\/font><\/td>\n<\/tr>\n<\/table>\n
ii<\/font><\/p>\n
\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
 <\/font><\/td>\nSECTION 6.6<\/font><\/td>\n <\/font><\/td>\nCERTAIN EMPLOYEE BENEFIT MATTERS<\/font><\/td>\n <\/font><\/td>\n29<\/font><\/td>\n<\/tr>\n
 <\/font><\/td>\nSECTION 6.7<\/font><\/td>\n <\/font><\/td>\nDIRECTOR AND OFFICER LIABILITY<\/font><\/td>\n <\/font><\/td>\n30<\/font><\/td>\n<\/tr>\n
ARTICLE VII OTHER AGREEMENTS<\/font><\/td>\n <\/font><\/td>\n30<\/font><\/td>\n<\/tr>\n
 <\/font><\/td>\nSECTION 7.1<\/font><\/td>\n <\/font><\/td>\nCONFIDENTIALITY<\/font><\/td>\n <\/font><\/td>\n30<\/font><\/td>\n<\/tr>\n
 <\/font><\/td>\nSECTION 7.2<\/font><\/td>\n <\/font><\/td>\nNO PUBLIC ANNOUNCEMENT<\/font><\/td>\n <\/font><\/td>\n30<\/font><\/td>\n<\/tr>\n
 <\/font><\/td>\nSECTION 7.3<\/font><\/td>\n <\/font><\/td>\nREGULATORY FILINGS; CONSENTS; REASONABLE EFFORTS<\/font><\/td>\n <\/font><\/td>\n30<\/font><\/td>\n<\/tr>\n
 <\/font><\/td>\nSECTION 7.4<\/font><\/td>\n <\/font><\/td>\nPOOLING ACCOUNTING<\/font><\/td>\n <\/font><\/td>\n31<\/font><\/td>\n<\/tr>\n
 <\/font><\/td>\nSECTION 7.5<\/font><\/td>\n <\/font><\/td>\nFURTHER ASSURANCES<\/font><\/td>\n <\/font><\/td>\n31<\/font><\/td>\n<\/tr>\n
 <\/font><\/td>\nSECTION 7.6<\/font><\/td>\n <\/font><\/td>\nESCROW AGREEMENT<\/font><\/td>\n <\/font><\/td>\n31<\/font><\/td>\n<\/tr>\n
 <\/font><\/td>\nSECTION 7.7<\/font><\/td>\n <\/font><\/td>\nFIRPTA<\/font><\/td>\n <\/font><\/td>\n32<\/font><\/td>\n<\/tr>\n
 <\/font><\/td>\nSECTION 7.8<\/font><\/td>\n <\/font><\/td>\nBLUE SKY LAWS<\/font><\/td>\n <\/font><\/td>\n32<\/font><\/td>\n<\/tr>\n
 <\/font><\/td>\nSECTION 7.9<\/font><\/td>\n <\/font><\/td>\nOTHER FILINGS<\/font><\/td>\n <\/font><\/td>\n32<\/font><\/td>\n<\/tr>\n
ARTICLE VIII CONDITIONS TO MERGER<\/font><\/td>\n <\/font><\/td>\n32<\/font><\/td>\n<\/tr>\n
 <\/font><\/td>\nSECTION 8.1<\/font><\/td>\n <\/font><\/td>\nCONDITIONS TO EACH PARTY’S OBLIGATION TO EFFECT THE MERGER<\/font><\/td>\n <\/font><\/td>\n32<\/font><\/td>\n<\/tr>\n
 <\/font><\/td>\nSECTION 8.2<\/font><\/td>\n <\/font><\/td>\nADDITIONAL CONDITIONS TO OBLIGATIONS OF ACQUIROR AND SUB<\/font><\/td>\n <\/font><\/td>\n33<\/font><\/td>\n<\/tr>\n
 <\/font><\/td>\nSECTION 8.3<\/font><\/td>\n <\/font><\/td>\nADDITIONAL CONDITIONS TO OBLIGATIONS OF TARGET<\/font><\/td>\n <\/font><\/td>\n35<\/font><\/td>\n<\/tr>\n
ARTICLE IX TERMINATION AND AMENDMENT<\/font><\/td>\n <\/font><\/td>\n35<\/font><\/td>\n<\/tr>\n
 <\/font><\/td>\nSECTION 9.1<\/font><\/td>\n <\/font><\/td>\nTERMINATION<\/font><\/td>\n <\/font><\/td>\n35<\/font><\/td>\n<\/tr>\n
 <\/font><\/td>\nSECTION 9.2<\/font><\/td>\n <\/font><\/td>\nEFFECT OF TERMINATION<\/font><\/td>\n <\/font><\/td>\n36<\/font><\/td>\n<\/tr>\n
 <\/font><\/td>\nSECTION 9.3<\/font><\/td>\n <\/font><\/td>\nFEES AND EXPENSES<\/font><\/td>\n <\/font><\/td>\n36<\/font><\/td>\n<\/tr>\n
ARTICLE X ESCROW AND INDEMNIFICATION<\/font><\/td>\n <\/font><\/td>\n37<\/font><\/td>\n<\/tr>\n
 <\/font><\/td>\nSECTION 10.1<\/font><\/td>\n <\/font><\/td>\nINDEMNIFICATION<\/font><\/td>\n <\/font><\/td>\n37<\/font><\/td>\n<\/tr>\n
 <\/font><\/td>\nSECTION 10.2<\/font><\/td>\n <\/font><\/td>\nESCROW FUND<\/font><\/td>\n <\/font><\/td>\n37<\/font><\/td>\n<\/tr>\n
 <\/font><\/td>\nSECTION 10.3<\/font><\/td>\n <\/font><\/td>\nDAMAGE THRESHOLD<\/font><\/td>\n <\/font><\/td>\n37<\/font><\/td>\n<\/tr>\n
 <\/font><\/td>\nSECTION 10.4<\/font><\/td>\n <\/font><\/td>\nESCROW PERIODS<\/font><\/td>\n <\/font><\/td>\n38<\/font><\/td>\n<\/tr>\n
 <\/font><\/td>\nSECTION 10.5<\/font><\/td>\n <\/font><\/td>\nCLAIMS UPON ESCROW FUND<\/font><\/td>\n <\/font><\/td>\n38<\/font><\/td>\n<\/tr>\n
 <\/font><\/td>\nSECTION 10.6<\/font><\/td>\n <\/font><\/td>\nVALUATION<\/font><\/td>\n <\/font><\/td>\n38<\/font><\/td>\n<\/tr>\n
 <\/font><\/td>\nSECTION 10.7<\/font><\/td>\n <\/font><\/td>\nOBJECTIONS TO CLAIMS<\/font><\/td>\n <\/font><\/td>\n38<\/font><\/td>\n<\/tr>\n
 <\/font><\/td>\nSECTION 10.8<\/font><\/td>\n <\/font><\/td>\nRESOLUTION OF CONFLICTS<\/font><\/td>\n <\/font><\/td>\n38<\/font><\/td>\n<\/tr>\n
 <\/font><\/td>\nSECTION 10.9<\/font><\/td>\n <\/font><\/td>\nSHAREHOLDERS’ AGENTS<\/font><\/td>\n <\/font><\/td>\n39<\/font><\/td>\n<\/tr>\n
 <\/font><\/td>\nSECTION 10.10<\/font><\/td>\n <\/font><\/td>\nACTIONS OF THE SHAREHOLDERS’ AGENTS<\/font><\/td>\n <\/font><\/td>\n39<\/font><\/td>\n<\/tr>\n
 <\/font><\/td>\nSECTION 10.11<\/font><\/td>\n <\/font><\/td>\nCLAIMS<\/font><\/td>\n <\/font><\/td>\n40<\/font><\/td>\n<\/tr>\n
ARTICLE XI MISCELLANEOUS<\/font><\/td>\n <\/font><\/td>\n40<\/font><\/td>\n<\/tr>\n
 <\/font><\/td>\nSECTION 11.1<\/font><\/td>\n <\/font><\/td>\nSURVIVAL OF REPRESENTATIONS AND COVENANTS<\/font><\/td>\n <\/font><\/td>\n40<\/font><\/td>\n<\/tr>\n
 <\/font><\/td>\nSECTION 11.2<\/font><\/td>\n <\/font><\/td>\nNOTICES<\/font><\/td>\n <\/font><\/td>\n40<\/font><\/td>\n<\/tr>\n
 <\/font><\/td>\nSECTION 11.3<\/font><\/td>\n <\/font><\/td>\nINTERPRETATION<\/font><\/td>\n <\/font><\/td>\n41<\/font><\/td>\n<\/tr>\n<\/table>\n
iii<\/font><\/p>\n
\n\n\n\n\n\n\n\n\n\n
 <\/font><\/td>\nSECTION 11.4<\/font><\/td>\n <\/font><\/td>\nCOUNTERPARTS<\/font><\/td>\n <\/font><\/td>\n41<\/font><\/td>\n<\/tr>\n
 <\/font><\/td>\nSECTION 11.5<\/font><\/td>\n <\/font><\/td>\nENTIRE AGREEMENT; NO THIRD PARTY BENEFICIARIES<\/font><\/td>\n <\/font><\/td>\n <\/font><\/td>\n<\/tr>\n
 <\/font><\/td>\nSECTION 11.6<\/font><\/td>\n <\/font><\/td>\nGOVERNING LAW<\/font><\/td>\n <\/font><\/td>\n41<\/font><\/td>\n<\/tr>\n
 <\/font><\/td>\nSECTION 11.7<\/font><\/td>\n <\/font><\/td>\nASSIGNMENT<\/font><\/td>\n <\/font><\/td>\n42<\/font><\/td>\n<\/tr>\n
 <\/font><\/td>\nSECTION 11.8<\/font><\/td>\n <\/font><\/td>\nAMENDMENT<\/font><\/td>\n <\/font><\/td>\n42<\/font><\/td>\n<\/tr>\n
 <\/font><\/td>\nSECTION 11.9<\/font><\/td>\n <\/font><\/td>\nEXTENSION; WAIVER<\/font><\/td>\n <\/font><\/td>\n42<\/font><\/td>\n<\/tr>\n
 <\/font><\/td>\nSECTION 11.10<\/font><\/td>\n <\/font><\/td>\nSPECIFIC PERFORMANCE<\/font><\/td>\n <\/font><\/td>\n42<\/font><\/td>\n<\/tr>\n
 <\/font><\/td>\nSECTION 11.11<\/font><\/td>\n <\/font><\/td>\nSEVERABILITY<\/font><\/td>\n <\/font><\/td>\n42<\/font><\/td>\n<\/tr>\n<\/table>\n
iv<\/font><\/p>\n
\n\n\n\n\n\n\n\n\n\n\n\n\n
 <\/font><\/td>\n <\/font><\/td>\n <\/font><\/td>\n <\/font><\/td>\n <\/font><\/td>\n<\/tr>\n
EXHIBITS<\/u><\/b><\/font><\/td>\n <\/font><\/td>\n <\/font><\/td>\n <\/font><\/td>\n <\/font><\/td>\n<\/tr>\n
 
 <\/b><\/font>EXHIBIT A<\/font><\/td>\n		 
 <\/font><\/td>\n		 
\n\u0097<\/font><\/td>\n		 
 <\/font><\/td>\n		 
\nVOTING AGREEMENT<\/font><\/td>\n<\/tr>\n
EXHIBIT B<\/font><\/td>\n <\/font><\/td>\n\u0097<\/font><\/td>\n <\/font><\/td>\nNONCOMPETITION AGREEMENT<\/font><\/td>\n<\/tr>\n
EXHIBIT C<\/font><\/td>\n <\/font><\/td>\n\u0097<\/font><\/td>\n <\/font><\/td>\nSTOCKHOLDERS AGREEMENT<\/font><\/td>\n<\/tr>\n
EXHIBIT D<\/font><\/td>\n <\/font><\/td>\n\u0097<\/font><\/td>\n <\/font><\/td>\nAFFILIATE AGREEMENT<\/font><\/td>\n<\/tr>\n
EXHIBIT E<\/font><\/td>\n <\/font><\/td>\n\u0097<\/font><\/td>\n <\/font><\/td>\nESCROW AGREEMENT<\/font><\/td>\n<\/tr>\n
EXHIBIT F<\/font><\/td>\n <\/font><\/td>\n\u0097<\/font><\/td>\n <\/font><\/td>\nSUBJECT MATTER OF OPINION OF COUNSEL TO TARGET<\/font><\/td>\n<\/tr>\n
EXHIBIT G-1<\/font><\/td>\n <\/font><\/td>\n\u0097<\/font><\/td>\n <\/font><\/td>\nACQUIROR TAX CERTIFICATE<\/font><\/td>\n<\/tr>\n
EXHIBIT G-2<\/font><\/td>\n <\/font><\/td>\n\u0097<\/font><\/td>\n <\/font><\/td>\nTARGET TAX CERTIFICATE<\/font><\/td>\n<\/tr>\n
EXHIBIT H<\/font><\/td>\n <\/font><\/td>\n\u0097<\/font><\/td>\n <\/font><\/td>\nSUBJECT MATTER OF OPINION OF COUNSEL TO ACQUIROR<\/font><\/td>\n<\/tr>\n<\/table>\n
v<\/font><\/p>\n
\n
AGREEMENT AND PLAN OF MERGER  <\/b><\/font><\/p>\n
    THIS AGREEMENT AND PLAN OF MERGER, dated as of June 27, 2000 (this “<\/font>Agreement<\/b><\/font>“), is entered into by and
\namong Yahoo! Inc., a Delaware corporation (“<\/font>Acquiror<\/b><\/font>“), Hermes Acquisition Corporation, a Delaware corporation and a wholly owned subsidiary of
\nAcquiror (“<\/font>Sub<\/b><\/font>“), and eGroups, Inc., a Delaware corporation (“<\/font>Target<\/b><\/font>“). <\/font><\/p>\n
RECITALS  <\/b><\/font><\/p>\n
    A.  The
\nBoards of Directors of Acquiror, Sub and Target deem it advisable and in the best interests of each corporation and their respective stockholders that Acquiror
\nand Target combine their respective businesses in order to advance the long-term business interests of Acquiror and Target; <\/font><\/p>\n
    B.  The
\ncombination of Acquiror and Target shall be effected by the terms of this Agreement through a transaction in which Sub will merge with and into Target, Target
\nwill become a wholly owned subsidiary of Acquiror and the stockholders of Target will become stockholders of Acquiror (the “<\/font>Merger<\/b><\/font>“); <\/font><\/p>\n
    C.  For
\nFederal income tax purposes, it is intended that the Merger shall qualify as a reorganization within the meaning of Section 368(a) of the Internal
\nRevenue Code of 1986, as amended (the “<\/font>Code<\/b><\/font>“); <\/font><\/p>\n
    D.  For
\naccounting purposes, it is intended that the Merger shall be accounted for as a pooling of interests transaction; <\/font><\/p>\n
    E.  As
\na condition and inducement to Acquiror’s willingness to enter into this Agreement, certain Target stockholders holding no less than 51% of the issued and
\noutstanding Preferred Stock of Target and no less than 51% of the issued and outstanding Common Stock of Target, have, concurrently with the
\nexecution of this Agreement, executed and delivered Voting Agreements in the form attached hereto as Exhibit A<\/u> (the “<\/font>Voting
\nAgreements<\/b><\/font>“), pursuant to which such stockholders have, among other things, agreed to vote their shares of Target capital stock in favor of the Merger and to grant Acquiror
\nirrevocable proxies to vote such shares; <\/font><\/p>\n
    F.  As
\na further condition and inducement to Acquiror’s willingness to enter into this Agreement, certain employees of Target who are also stockholders of Target have,
\nconcurrently with the execution of this Agreement, executed and delivered Noncompetition Agreements in the form attached hereto as Exhibit B<\/u> (the
\n“<\/font>Noncompetition Agreements<\/b><\/font>“), which agreements shall only become effective at the Effective Time (as defined in Section 1.1 below). <\/font><\/p>\n
    G.  As
\na further condition and inducement to Acquiror’s willingness to enter into this Agreement, certain stockholders of Target have executed and delivered to Acquiror
\nStockholders Agreements in the form attached hereto as Exhibit C<\/u> (the “<\/font>Stockholders Agreements<\/b><\/font>“) and Affiliate
\nAgreements in the form attached hereto as Exhibit D<\/u> (the <\/font>“Affiliate Agreements”<\/b><\/font>). <\/font><\/p>\n
    <\/font>NOW, THEREFORE<\/b><\/font>, in consideration of the foregoing and the respective representations, warranties, covenants and agreements set forth
\nbelow, the parties agree as follows: <\/font><\/p>\n
ARTICLE
\nI <\/font><\/p>\n
THE
\nMERGER <\/font><\/p>\n
    Section 1.1  Effective
\nTime of the Merger.<\/u> <\/font><\/p>\n
    \n
        (a) Subject
    \nto the provisions of this Agreement, a certificate of merger (the “<\/font>Certificate of Merger<\/b><\/font>“) in such mutually
    \nacceptable form as is required by the relevant provisions of the Delaware General Corporation Law (“<\/font>Delaware Law<\/b><\/font>“) shall be duly executed and delivered
    \nby the parties hereto and thereafter delivered to the Secretary of State of the State of Delaware for filing on the Closing Date (as defined in Section 1.2). <\/font><\/p>\n<\/ul>\n
    1<\/font><\/p>\n
    \n
      \n

      \n    (b) The Merger shall become effective upon the due and valid filing of the Certificate of Merger with the Secretary of State of the State of Delaware or at such time
      \nthereafter as is provided in the Certificate of Merger (the “<\/font>Effective Time<\/b><\/font>“). <\/font><\/p>\n<\/ul>\n
          Section 1.2  Closing<\/u>.
      \nThe closing of the Merger (the “<\/font>Closing<\/b><\/font>“) will take place at
      \n10:00 a.m., California time, on a date (the “<\/font>Closing Date<\/b><\/font>“) to be specified by Acquiror and Target, which shall be no later than the second
      \nbusiness day after satisfaction or waiver of the latest to occur of the conditions set forth in Article VIII, at the offices of Venture Law Group, A Professional Corporation, 2775 Sand Hill
      \nRoad, Menlo Park, California unless another date, time or place is agreed to in writing by Acquiror and Target. <\/font><\/p>\n
          Section 1.3  Effects
      \nof the Merger<\/u>. <\/font><\/p>\n
        \n
            (a) At
        \nthe Effective Time (i) the separate existence of Sub shall cease and Sub shall be merged with and into Target (Sub and Target are sometimes referred to
        \nherein as the “<\/font>Constituent Corporations<\/b><\/font>” and Target following consummation of the Merger is sometimes referred to herein as the
        \n“<\/font>Surviving Corporation<\/b><\/font>“), (ii) the Certificate of Incorporation of Sub shall be the Certificate of Incorporation of the Surviving Corporation and
        \n(iii) the Bylaws of Sub as in effect immediately prior to the Effective Time shall become the Bylaws of the Surviving Corporation. <\/font><\/p>\n
            (b) At
        \nthe Effective Time, the effect of the Merger shall be as provided in the applicable provisions of Delaware Law. Without limiting the generality of the foregoing,
        \nat and after the Effective Time, the Surviving Corporation shall possess all the rights, privileges, powers and franchises, and be subject to all the restrictions, disabilities and duties of each of
        \nthe Constituent Corporations. <\/font><\/p>\n<\/ul>\n
            Section 1.4  Directors
        \nand Officers<\/u>. The directors of Sub immediately prior to the Effective Time shall become the directors of the
        \nSurviving Corporation, each to hold office in accordance with the Certificate of Incorporation and Bylaws of the Surviving Corporation, and the officers of Sub immediately prior to the Effective Time
        \nshall become the officers of the Surviving Corporation, in each case until their respective successors are duly elected or appointed and qualified. <\/font><\/p>\n
        ARTICLE
        \nII <\/font><\/p>\n
        CONVERSION
        \nOF SECURITIES <\/font><\/p>\n
            Section 2.1  Conversion
        \nof Capital Stock<\/u>. At the Effective Time, by virtue of the Merger and without any action on the part of the
        \nholder of any shares of capital stock of Target or capital stock of Sub: <\/font><\/p>\n
          \n
              (a) Capital
          \nStock of Sub<\/u>. Each issued and outstanding share of the capital stock of Sub shall be converted into and become one fully paid
          \nand nonassessable share of Common Stock, $0.001 par value, of the Surviving Corporation. <\/font><\/p>\n
              (b) Cancellation
          \nof Acquiror-Owned and Target-Owned Stock<\/u>. Any shares of Series A Preferred Stock, $0.001 par value, Series B
          \nPreferred Stock, $0.001 par value, Series C Preferred Stock, $0.001 par value, and Series D Preferred Stock, $0.001 par value, of Target (taken together, the <\/font> “Target Preferred Stock<\/b><\/font>“), or
          \nshares of Common Stock, $0.001 par value, of Target (<\/font>“Target Common
          \nStock”<\/b><\/font>), that are owned by Acquiror, Sub, Target or any other direct or indirect wholly-owned Subsidiary (as defined below) of Acquiror or Target shall be canceled and retired
          \nand shall cease to exist and no stock of Acquiror or other consideration shall be delivered in exchange. As used in this Agreement, the word
          \n“<\/font>Subsidiary<\/b><\/font>” means, with respect to any other party, any corporation or other organization, whether incorporated or unincorporated, of which
          \n(i) such party or any other Subsidiary of such party is a general partner (excluding partnerships, the general partnership interests of which held by such party or any Subsidiary of such party
          \ndo not have a majority of the voting interest in such partnership) or (ii) at least a majority of the securities or other interests having by their terms ordinary voting power to elect a
          \nmajority of the Board of Directors or others performing similar functions with respect <\/font><\/p>\n<\/ul>\n
          2<\/font><\/p>\n
          \n
            \n

            \nto such corporation or other organization or a majority of the profit interests in such other organization is directly or indirectly owned or controlled by such party or by any one or more of its
            \nSubsidiaries, or by such party and one or more of its Subsidiaries. <\/font><\/p>\n
                (c) Exchange
            \nRatio<\/u>. <\/font><\/p>\n
              \n
                   (i) Subject
              \nto Sections 2.2 and 2.4, each issued and outstanding share of Target Common Stock (other than shares to be canceled in accordance with Section 2.1(b)
              \nand any Dissenting Shares as defined in and to the extent provided in Section 2.3) shall, by virtue of the Merger and without any action on the part of the holder thereof, be converted into the
              \nright to receive a fraction of a fully paid and nonassessable share of Acquiror Common Stock (as defined in Section 4.2) equal to the <\/font>“Exchange
              \nRatio”<\/b><\/font>, as defined in and determined in accordance with the provisions of this Section 2.1(c). All such shares of Target Common Stock, when so converted, shall no longer
              \nbe outstanding and shall automatically be canceled and retired and shall cease to exist, and each holder of a certificate representing any such shares shall cease to have any rights with respect
              \nthereto, except the right to receive the shares of Acquiror Common Stock to be issued in consideration therefor upon the surrender of such certificate in accordance with Section 2.4. The number
              \nof shares of Acquiror Common Stock to be issued to each Target stockholder shall be determined by multiplying (1) the number of shares of Target Common Stock held by such stockholder (or which
              \nwill be held by such stockholder upon the conversion of its shares of Target Preferred Stock into Target Common Stock in accordance with the Target Certificate of Incorporation immediately prior to
              \nthe Effective Time) by (2) the Exchange Ratio, rounded up to the nearest whole share. <\/font><\/p>\n
                  (ii) For
              \npurposes of this Agreement, the term “<\/font>Total Consideration Shares<\/b><\/font>” shall be deemed to mean the quotient obtained
              \nby dividing<\/u> (x) the result obtained by subtracting from $450,000,000 (I) the Aggregate Transaction Expenses (as defined in Section 8.2(r) hereof),
              \n(II) any cash amounts or other value transfers in excess of $8,644,000 paid or payable by Target in connection with or as a result of the termination of lease agreement dated April 12,
              \n2000 between Target and TST 555\/575 Market, L.L.C. (the “<\/font>Landlord<\/b><\/font>“) relating to Target’s proposed premises at 555 Market Street in San Francisco,
              \nCalifornia (the “<\/font>555 Market Street Lease Agreement<\/b><\/font>“) and (III) any cash amounts or other value transfers paid or payable by Target in connection
              \nwith or as a result of Target’s entering into a Qualified Sublease (as defined below) (other than the remitting to the Landlord of a portion of any net profits realized by Target in connection with
              \nthe subleasing arrangement pursuant to the terms of the 555 Market Street Lease Agreement), by (y) $131.26667 (the “<\/font>Average Stock Price<\/b><\/font>“). The
              \n“<\/font>Exchange Ratio<\/b><\/font>” shall be equal to the quotient determined by dividing<\/u> (x) the Total Consideration Shares, by
              \n(y) the sum of (A) the number of shares of Target Common Stock issued and outstanding as of the Effective Time, plus<\/u> (B) the number of shares of
              \nTarget Common Stock subject to issuance upon the exercise in full of all Target Options issued and outstanding immediately prior to the Effective Time, whether vested or unvested,
              \nplus<\/u> (C) the number of shares of Target Common Stock issuable upon the conversion of all issued and outstanding shares of Target Preferred Stock immediately prior
              \nto the Effective Time. In no event will the total number of shares of Acquiror Common Stock issuable by Acquiror pursuant to the Merger (including shares of Acquiror Common Stock issuable upon
              \nexercise of Target Options assumed by Acquiror in the Merger) exceed the Total Consideration Shares. A schedule setting forth the allocation of the Total Consideration Shares among each holder of
              \nTarget Common Stock, Target Preferred Stock and Target Options based upon the capitalization of Target as of the Effective Time will be prepared by Target and delivered to Acquiror prior to the
              \nClosing Date. For purposes of this Agreement, the term “<\/font>Qualified Sublease<\/b><\/font>” shall refer to one or more subleases covering, when taken together, the
              \nentire premises leased by Target under the 555 Market Street Lease Agreement that may be entered into by Target prior to the Effective Time with one or more subtenants, each of which shall be
              \nsatisfactory to Acquiror in its reasonable discretion, on terms and conditions that shall be satisfactory to Acquiror in its reasonable discretion (which shall include a minimum lease term of <\/font><\/p>\n<\/ul>\n<\/ul>\n
              3<\/font><\/p>\n
              \n
                \n
                  \n

                  \nat least five years for each of the subleases and shall include terms to the net effect that Target shall not be obligated to make any payments or other value transfers to any party in connection with
                  \nthe subleasing arrangement (other than the remitting to the Landlord of a portion of any net profits
                  \nrealized by Target in connection with the subleasing arrangement pursuant to the terms of the 555 Market Street Lease Agreement). <\/font><\/p>\n
                      (iii) If,
                  \non or after the date of this Agreement and prior to the Effective Time, the outstanding shares of Acquiror Common Stock or Target capital stock shall have
                  \nbeen changed into a different number of shares or a different class by reason of any reclassification, split-up, stock dividend or stock combination, then the Exchange Ratio shall be
                  \ncorrespondingly adjusted. The Exchange Ratio shall not change as a result of fluctuations in the market price of Acquiror Common Stock between the date of this Agreement and the Effective Time. <\/font><\/p>\n<\/ul>\n
                      (d) Target
                  \nStock Options<\/u>. At the Effective Time, all then outstanding options, whether vested or unvested (<\/font>“Target
                  \nOptions”<\/b><\/font>), to purchase Target Common Stock issued under Target’s stock option plans identified in Section 3.2(a) will be assumed by Acquiror in accordance with
                  \nSection 6.4. <\/font><\/p>\n
                      (e) Restricted
                  \nShares<\/u>. Any shares of Target Common Stock that are subject to repurchase by Target in the event the holder thereof ceases to
                  \nbe employed by Target (“<\/font>Target Restricted Shares<\/b><\/font>“) shall be converted into Acquiror Common Stock on the same basis as provided in subsection
                  \n(c) above and shall be registered in such holder’s name, but shall be held by the Surviving Corporation or Acquiror pursuant to the existing agreements in effect on the date of this Agreement.
                  \nAt the Effective Time, Target shall assign all of its rights under such existing agreements to Acquiror. Holders of the Target Restricted Shares, together with a summary of the vesting schedules for
                  \nsuch shares, are identified on Schedule 2.1(e) of the Target Disclosure Schedule. <\/font><\/p>\n<\/ul>\n
                      Section 2.2  Escrow
                  \nAgreement<\/u>. At the Effective Time or such later time as determined in accordance with Section 2.3(b),
                  \nAcquiror will, on behalf of the holders of Target Common Stock and Target Preferred Stock, deposit in escrow certificates representing ten percent (10%) of the Total Consideration Shares allocable to
                  \nTarget Common Stock and Target Preferred Stock in the Merger. Such shares shall be held in escrow on behalf of the persons who are the holders of Target Common Stock or Target Preferred Stock in the
                  \nMerger immediately prior to the Effective Time (the “<\/font>Former Target Stockholders<\/b><\/font>“), in accordance with the portion of Total Consideration Shares
                  \nallocable to each such Former Target Stockholder based upon the Exchange Ratios (“<\/font>Pro Rata Portion<\/b><\/font>“). Such shares (collectively, the
                  \n“<\/font>Escrow Shares<\/b><\/font>“) shall be held and applied pursuant to the provisions of an escrow agreement (the “<\/font>Escrow
                  \nAgreement<\/b><\/font>“) to be executed pursuant to Section 7.6. All calculations to determine the number of Escrow Shares to be delivered by each stockholder of the Company into
                  \nescrow as aforesaid shall be rounded down to the nearest whole share. <\/font><\/p>\n
                      Section 2.3  Dissenting
                  \nShares<\/u>. <\/font><\/p>\n
                    \n
                        (a) Notwithstanding
                    \nany provision of this Agreement to the contrary, any shares of Target Common Stock or Target Preferred Stock held by a holder who has exercised such
                    \nholder’s appraisal rights in accordance with Section 262 of Delaware Law or, to the extent applicable, Chapter 13 of the California General Corporation Law (the
                    \n“<\/font>California Law<\/b><\/font>“), and who, as of the Effective Time, has not effectively withdrawn or lost such appraisal rights (“<\/font>Dissenting
                    \nShares<\/b><\/font>“), shall not be converted into or represent a right to receive Acquiror Common Stock pursuant to Section 2.1, but the holder of the Dissenting Shares shall only
                    \nbe entitled to such rights as are granted by Delaware Law or California Law, as the case may be. <\/font><\/p>\n
                        (b) Notwithstanding
                    \nthe provisions of Section 2.3(a), if any holder of shares of Target Common Stock or Target Preferred Stock who demands his appraisal rights
                    \nwith respect to such shares under Section 2.1 shall effectively withdraw or lose (through failure to perfect or otherwise) his rights to receive payment for the fair market value of such shares
                    \nunder Delaware Law or California Law, as the case may be, then, as of the later of the Effective Time or the occurrence of such event, such holder’s shares shall automatically be converted into and
                    \nrepresent only the right to receive Acquiror <\/font><\/p>\n<\/ul>\n
                    4<\/font><\/p>\n
                    \n
                      \n

                      \nCommon Stock as provided in Section 2.1(c) upon surrender of the certificate or certificates representing such shares; provided<\/u> that if such holder effectively
                      \nwithdraws or loses his right to receive payment for the fair market value of such shares after the Effective Time, then, at such time Acquiror will deposit in the escrow created pursuant to the Escrow
                      \nAgreement additional certificates representing such holder’s Pro Rata Portion of the Escrow Shares. <\/font><\/p>\n
                          (c) Target
                      \nshall give Acquiror (i) prompt notice of any written demands for payment with respect to any shares of capital stock of Target pursuant to
                      \nSection 262 of Delaware Law or Chapter 13 of California Law, as the case may be, withdrawals of such demands, and any other instruments served pursuant to Delaware Law or California Law,
                      \nas the case may be, and received by the Target and (ii) the opportunity to participate at its own expense in all negotiations and proceedings with respect to demands for appraisal rights under
                      \nDelaware Law or California Law, as the case may be. Target shall not, except with the prior written consent of Acquiror, voluntarily make any payment with respect to any demands for appraisal rights
                      \nwith respect to Target Common Stock or Target Preferred Stock or offer to settle or compromise any such demands. <\/font><\/p>\n<\/ul>\n
                          Section 2.4  Exchange
                      \nof Certificates<\/u>. <\/font><\/p>\n
                        \n
                            (a) From
                        \nand after the Effective Time, each holder of an outstanding certificate or certificates (“<\/font>Certificates<\/b><\/font>“) which
                        \nrepresented shares of Target Common Stock or Target Preferred Stock immediately prior to the Effective Time shall have the right to surrender each Certificate to Acquiror (or at Acquiror’s option, an
                        \nexchange agent to be appointed by Acquiror), and receive promptly in exchange for all Certificates held by such holder a certificate representing the number of whole shares of Acquiror Common Stock
                        \n(other than the Escrow Shares) into which the Target Common Stock or Target Preferred Stock evidenced by the Certificates so surrendered shall have been converted pursuant to the provisions of
                        \nArticle II of this Agreement. The surrender of Certificates shall be accompanied by duly completed and executed Letters of Transmittal in such form as may be reasonably specified by Acquiror.
                        \nUntil surrendered, each outstanding Certificate, which prior to the Effective Time represented shares of Target Common Stock or Target Preferred Stock, shall be deemed for all corporate purposes to
                        \nevidence ownership of the number of whole shares of Acquiror Common Stock into which the shares of Target Common Stock have been converted but shall, subject to applicable appraisal rights under
                        \nDelaware Law and Section 2.3, have no other rights. Subject to applicable appraisal rights under Delaware Law and Section 2.3, from and after the Effective Time, the holders of shares of
                        \nTarget Common Stock and Target Preferred Stock shall cease to have any rights in respect of such shares and their rights shall be solely in respect of the Acquiror Common Stock into which such shares
                        \nof Target Common Stock or Target Preferred Stock have been converted. From and after the Effective Time, there shall be no further registration of transfers on the records of Target of shares of
                        \nTarget Common Stock and Target Preferred Stock outstanding immediately prior to the Effective Time. <\/font><\/p>\n
                            (b) If
                        \nany shares of Acquiror Common Stock are to be issued in the name of a person other than the person in whose name the Certificate(s) surrendered in exchange
                        \ntherefor is registered, it shall be a condition to the issuance of such shares that (i) the Certificate(s) so surrendered shall be transferable, and shall be properly assigned, endorsed or
                        \naccompanied by appropriate stock powers, (ii) such transfer shall otherwise be proper and (iii) the person requesting such transfer shall pay Acquiror, or its exchange agent, any
                        \ntransfer or other taxes payable by reason of the foregoing or establish to the satisfaction of Acquiror that such taxes have been paid or are not required to be paid. Notwithstanding the foregoing,
                        \nneither Acquiror nor Target shall be liable to a holder of shares of Target Common Stock or Target Preferred Stock for shares of Acquiror Common Stock issuable to such holder pursuant to the
                        \nprovisions of Article II of this Agreement that are delivered to a public official pursuant to applicable abandoned property, escheat or similar laws. <\/font><\/p>\n
                            (c) In
                        \nthe event any Certificate shall have been lost, stolen or destroyed, upon the making of an affidavit of that fact by the person claiming such Certificate to be
                        \nlost, stolen or destroyed, Acquiror shall issue in exchange for such lost, stolen or destroyed Certificate the shares of Acquiror Common <\/font><\/p>\n<\/ul>\n
                        5<\/font><\/p>\n
                        \n
                          \n

                          \nStock issuable in exchange therefor pursuant to the provisions of Article II of the Agreement. The Board of Directors of Acquiror may in its discretion and as a condition precedent to the
                          \nissuance thereof, require the owner of such lost, stolen or destroyed Certificate to provide to Acquiror an indemnity agreement or bond against any claim that may be made against Acquiror with respect
                          \nto the Certificate alleged to have been lost, stolen or destroyed. <\/font><\/p>\n<\/ul>\n
                              Section 2.5  Distributions
                          \nwith Respect to Unexchanged Shares<\/u>. No dividends or other distributions declared or made after the
                          \nEffective Time with respect to Acquiror Common Stock with a record date after the Effective Time shall be paid to the holder of any unsurrendered Certificate with respect to the shares of Acquiror
                          \nCommon Stock represented thereby until the holder of record of such Certificate shall surrender such Certificate. Subject to the effect of applicable laws, following surrender of any such Certificate,
                          \nthere shall be paid to the record holder of the certificates representing whole shares of Acquiror Common Stock issued in exchange therefor, without interest, (i) at the time of such surrender,
                          \nthe amount of any dividends or other distributions with a record date after the Effective Time previously paid with respect to such whole shares of Acquiror Common Stock, and (ii) at the
                          \nappropriate payment date, the amount of dividends or other distributions with a record date after the Effective Time but prior to surrender and a payment date subsequent to surrender payable with
                          \nrespect to such whole shares of Acquiror Common Stock. <\/font><\/p>\n
                              Section 2.6  Tax
                          \nand Accounting Consequences<\/u>. <\/font><\/p>\n
                            \n
                                (a) It
                            \nis intended by the parties hereto that the Merger shall constitute a “reorganization” within the meaning of Section 368 of the Code. The parties hereto
                            \nadopt this Agreement as a “plan of reorganization” within the meaning of Sections 1.368-2(g) and 1.368-3(a) of the United States Income Tax Regulations. <\/font><\/p>\n
                                (b) It
                            \nis intended by the parties hereto that the Merger shall qualify for financial accounting treatment as a pooling of interests. <\/font><\/p>\n
                            ARTICLE
                            \nIII <\/font><\/p>\n
                            REPRESENTATIONS
                            \nAND WARRANTIES OF TARGET <\/font><\/p>\n<\/ul>\n
                                Target
                            \nrepresents and warrants to Acquiror and Sub that the statements contained in this Article III are true and correct, except as expressly set forth in the disclosure
                            \nschedule delivered by Target to Acquiror on or before the date of this Agreement (the “<\/font>Target Disclosure Schedule<\/b><\/font>“). The Target Disclosure Schedule
                            \nshall be arranged in paragraphs corresponding to the numbered and lettered paragraphs contained in this Article III. <\/font><\/p>\n
                                Section 3.1  Organization
                            \nof Target and its Subsidiaries<\/u>. <\/font><\/p>\n
                              \n
                                  (a) Target
                              \nis a corporation duly organized, validly existing and in good standing under the laws of the State of Delaware, has all requisite corporate power to own,
                              \nlease and operate its property and to carry on its business as now being conducted, and is duly qualified or licensed to do business and is in good standing as a foreign corporation in each
                              \njurisdiction in which the nature of its business or ownership or leasing of properties makes such qualification or licensing necessary and where the failure to be so qualified or licensed could
                              \nreasonably be expected to result in a material adverse effect on the business, assets (including intangible assets), liabilities, condition (financial or otherwise), property or results of operations
                              \n(a “<\/font>Material Adverse Effect<\/b><\/font>“) of Target. Schedule 3.1(a) of the Target Disclosure Schedule contains a true and complete listing of the locations
                              \nof all sales offices, manufacturing facilities, and any other offices or facilities of Target and a true and complete list of all states in which Target maintains any employees. Schedule 3.1(a)
                              \nof the Target Disclosure Schedule also contains a true and complete list of all states in which Target is duly qualified or licensed to transact business as a foreign corporation. <\/font><\/p>\n<\/ul>\n
                              6<\/font><\/p>\n
                              \n
                                \n

                                \n    (b) Each Subsidiary of Target is identified on Schedule 3.1(b) of the Target Disclosure Schedule together with a listing of the jurisdiction in which each such
                                \nSubsidiary is organized. Each such Subsidiary is a corporation duly organized, validly existing and in good standing under the laws of the jurisdiction in which it was organized, has all requisite
                                \ncorporate power to own, lease and operate its property and to carry on its business as now being conducted, and is duly qualified or licensed to do business and is in good standing as a foreign
                                \ncorporation in each jurisdiction in which the nature of its business or ownership or leasing of properties makes such qualification or licensing necessary and where the failure to be so qualified or
                                \nlicensed could reasonably be expected to result in a Material Adverse Effect on Target. <\/font><\/p>\n<\/ul>\n
                                    Section 3.2  Target
                                \nCapital Structure<\/u>. <\/font><\/p>\n
                                  \n
                                      (a) The
                                  \nauthorized capital stock of Target consists of 43,000,000 shares of Target Common Stock and 17,500,000 shares of Preferred Stock, of which 1,620,000 shares are
                                  \ndesignated as Series A Preferred Stock, 3,600,000 shares are designated as Series B Preferred Stock, 7,280,811 shares are designated Series C Preferred Stock and 4,655,000 shares
                                  \nare designated Series D Preferred Stock. As of the date of this Agreement, there are (i) 16,252,601 shares of Target Common Stock issued and outstanding, all of which are validly issued,
                                  \nfully paid and nonassessable and 7,574,369 of which are subject to repurchase rights, (ii) 1,620,000 shares of Series A Preferred Stock issued and outstanding, all of which are validly
                                  \nissued, fully paid and nonassessable, and each share of which is convertible into one share of Target
                                  \nCommon Stock, (iii) 3,556,772 shares of Series B Preferred Stock issued and outstanding, all of which are validly issued, fully paid and nonassessable, and each share of which is
                                  \nconvertible into one share of Target Common Stock, (iv) 7,280,811 shares of Series C Preferred Stock issued and outstanding, all of which are validly issued, fully paid and
                                  \nnonassessable, and each share of which is convertible into one share of Target Common Stock, (v) 4,519,133 shares of Series D Preferred Stock issued and outstanding, all of which are
                                  \nvalidly issued, fully paid and nonassessable, and each share of which is convertible into one share of Target Common Stock, (vi) warrants to purchase up to 8,330 shares of Series B
                                  \nPreferred Stock (the <\/font>“Series B Warrants”<\/b><\/font>), (vii) warrants to purchase up to 100,000 shares of Series D Preferred Stock
                                  \n(collectively with the Series B Warrants, the “<\/font>Target Warrants<\/b><\/font>“); (viii) 16,976,716 shares of Target Common Stock reserved for future
                                  \nissuance upon conversion of the Target Preferred Stock; (ix) 1,951,110 shares of Target Common Stock reserved for future issuance pursuant to Target Options granted and outstanding as of the
                                  \ndate of this Agreement under the Target 1998 Stock Option Plan; (x) no shares of Target Common Stock reserved for future issuance pursuant to Target Options granted and outstanding as of the
                                  \ndate of this Agreement under the Target 2000 Stock Option Plan; and (xi) 932,625 shares of Target Common Stock reserved for future issuance pursuant to Target Options granted and outstanding as
                                  \nof the date of this Agreement under the ONElist Stock Option Plan. The Target 1998 Stock Option Plan, the Target 2000 Stock Option Plan and the ONElist Stock Option Plan are collectively referred to
                                  \nherein as the “<\/font>Target Stock Option Plans<\/b><\/font>.” The issued and outstanding shares of Target Common Stock and of Target Preferred Stock are held of record by
                                  \nthe stockholders of Target as set forth and identified on Schedule 3.2(a) of the Target Disclosure Schedule. The issued and outstanding Target Options are held of record by the option holders
                                  \nidentified on, in the amounts, with exercise prices and subject to the vesting schedules set forth on, Schedule 3.2(a) of the Target Disclosure Schedule. The issued and outstanding Target
                                  \nWarrants are held of record by the warrantholders as set forth and identified on Schedule 3.2(a) of the Target Disclosure Schedule. All shares of Target Common Stock and Target Preferred Stock
                                  \nsubject to issuance as specified above, upon issuance on the terms and conditions (including payment) specified in the instruments pursuant to which they are issuable, shall be duly authorized,
                                  \nvalidly issued, fully paid and nonassessable. All shares of Target Common Stock subject to issuance upon the exercise of Target Options and Target Warrants, upon issuance on the terms and conditions
                                  \n(including payment) specified in the instrument pursuant to which they are issuable, will be duly authorized, validly issued, fully paid and nonassessable. All outstanding shares of Target Common
                                  \nStock, Target Preferred Stock and outstanding Target Options and Target Warrants (collectively “<\/font>Target Securities<\/b><\/font>“) were issued in compliance with
                                  \napplicable federal and state securities laws. There are no obligations, contingent or otherwise, of Target to repurchase, redeem or otherwise acquire any <\/font><\/p>\n<\/ul>\n
                                  7<\/font><\/p>\n
                                  \n
                                    \n

                                    \nshares of Target Common Stock or Target Preferred Stock or make any investment (in the form of a loan, capital contribution or otherwise) in any other entity. An updated Schedule 3.2(a)
                                    \nreflecting changes permitted by this Agreement in the capitalization of Target between the date hereof and the Effective Time shall be delivered by Target to Acquiror on the Closing Date. <\/font><\/p>\n
                                        (b) Except
                                    \nas set forth in this Section 3.2, there are no equity securities of any class or series of Target, or any security exchangeable into or exercisable
                                    \nfor such equity securities, issued, reserved for issuance or outstanding. Except as set forth in this Section 3.2, there are no options, warrants, equity securities, calls, rights, commitments,
                                    \nunderstandings or agreements of any character to which Target is a party or
                                    \nby which it is bound obligating Target to issue, deliver or sell, or cause to be issued, delivered or sold, additional shares of capital stock of Target or obligating Target to grant, extend,
                                    \naccelerate the vesting of or enter into any such option, warrant, equity security, call, right, commitment or agreement. Except as set forth in the Target Disclosure Schedule, Target is not in active
                                    \ndiscussion, formal or informal, with any person or entity regarding the issuance of any form of additional Target equity that has not been issued or committed to prior to the date of this Agreement.
                                    \nExcept as provided in this Agreement and the other Transaction Documents (as defined in Section 3.3(a)) or any transaction contemplated hereby or thereby, there are no voting trusts, proxies or
                                    \nother agreements or understandings with respect to the voting of the shares of capital stock of Target. <\/font><\/p>\n
                                        (c) All
                                    \nTarget Options have been issued in accordance with the terms of the Target Option Plans and pursuant to the standard forms of option agreement previously
                                    \nprovided to Acquiror or its representatives. Except for such adjustments as are contemplated by Section 6.4, no Target Option will by its terms require an adjustment in connection with the
                                    \nMerger. Neither the consummation of transactions contemplated by this Agreement or the other Transaction Documents, nor any action taken or to be taken by Target in connection with such transactions
                                    \nwill result in (i) any acceleration of vesting in favor of any optionee under any Target Option; (ii) any additional benefits for any optionee under any Target Option; or
                                    \n(iii) the inability of Acquiror after the Effective Time to exercise any right or benefit held by Target prior to the Effective Time with respect to any Target Option assumed by Acquiror,
                                    \nincluding, without limitation, the right to repurchase an optionee’s unvested shares on termination of such optionee’s employment. The assumption by Acquiror of Target Options in accordance with
                                    \nSection 6.5 hereunder will not (i) give the optionees additional benefits which they did not have under their options prior to such assumption (after taking into account the existing
                                    \nprovisions of the options, such as their respective exercise prices and vesting schedules) and (ii) constitute a breach of the Target Plan or any agreement entered into pursuant to such plan. <\/font><\/p>\n
                                        (d) Schedule 3.2(d)
                                    \nof the Target Disclosure Schedule sets forth a listing of the number of equity securities held by Target in each of the Subsidiaries
                                    \nidentified on Schedule 3.1(b) of the Target Disclosure Schedule, the percentage of all outstanding equity securities for such Subsidiary represented by the securities held by Target and a
                                    \nsummary of all outstanding options or similar arrangements to acquire equity securities of such Subsidiaries. The issued and outstanding options to acquire shares of the capital stock of eGroups Japan
                                    \nKK are held of record by the option holders identified on, in the amounts, with exercise prices and subject to the vesting schedules set forth on, Schedule 3.2(d) of the Target Disclosure
                                    \nSchedule. Except as set forth on such Schedule, there are no equity securities of any class or series of any of such Subsidiaries, or any security exchangeable into or exercisable for such equity
                                    \nsecurities, issued, reserved for issuance or outstanding. Except as set forth on such Schedule, there are no options, warrants, equity securities, calls, rights, commitments, understandings or
                                    \nagreements of any character to which any such Subsidiary is a party or by which it is bound obligating any such Subsidiary to issue, deliver or sell, or cause to be issued, delivered or sold,
                                    \nadditional shares of capital stock of any such Subsidiary or obligating any such Subsidiary to grant, extend, accelerate the vesting of or enter into any such option, warrant, equity security, call,
                                    \nright, commitment or agreement. None of such Subsidiaries is in active discussion, formal or informal, with any person or entity regarding the issuance of any form of additional equity of such
                                    \nSubsidiary that has not been issued or committed to prior to the date of this Agreement. There are no voting trusts, <\/font><\/p>\n<\/ul>\n
                                    8<\/font><\/p>\n
                                    \n
                                      \n

                                      \nproxies or other agreements or understandings with respect to the voting of the shares of capital stock of any such Subsidiary. <\/font><\/p>\n<\/ul>\n
                                          Section 3.3  Authority;
                                      \nNo Conflict; Required Filings and Consents<\/u>. <\/font><\/p>\n
                                        \n
                                            (a) Target
                                        \nhas all requisite corporate power and authority to enter into this Agreement and all Transaction Documents to which it is or will become a party and to
                                        \nconsummate the transactions contemplated by this Agreement and such Transaction Documents. The execution and delivery of this Agreement and such Transaction Documents and the consummation of the
                                        \ntransactions contemplated by this Agreement and such Transaction Documents have been duly authorized by all necessary corporate action on the part of Target, subject only to the approval of the Merger
                                        \nby Target’s stockholders under the provisions of Delaware Law and Target’s Certificate of Incorporation. The affirmative vote of (i) the holders of a majority of the shares of Target Common
                                        \nStock and Target Preferred Stock, voting together as a single class (on an as-converted basis), that are issued and outstanding on the record date for the Target Stockholders Meeting
                                        \ncontemplated by Section 5.2 or on the first date on which a signed written consent of a Target stockholder approving the principal terms of this Agreement and the Merger is received by the
                                        \nSecretary of Target, as the case may be, and (ii) the holders of a majority of the shares of Target Preferred Stock that are issued and outstanding on the record date for the Target
                                        \nStockholders Meeting contemplated by Section 5.2 or on the first date on which a signed written consent of a Target stockholder approving the principal terms of this Agreement and the Merger is
                                        \nreceived by the Secretary of Target, as the case may be, are the only approvals of the stockholders of Target required in connection with the Merger and the approval of the principal terms of this
                                        \nAgreement. This Agreement has been and such Transaction Documents have been or, to the extent not executed by Target as of the date hereof, will be duly executed and delivered by Target. This
                                        \nAgreement and each of the Transaction Documents to which Target is a party constitutes, and each of the Transaction Documents to which Target will become a party, when executed and delivered by
                                        \nTarget, will constitute, assuming the due authorization, execution and delivery by the other parties hereto and thereto, the valid and binding obligation of Target, enforceable against Target in
                                        \naccordance with their respective terms, except to the extent that enforceability may be limited by applicable bankruptcy, reorganization, insolvency, moratorium or other laws affecting the enforcement
                                        \nof creditors’ rights generally and by general principles of equity, regardless of whether such enforceability is considered in a proceeding at law or in equity. For purposes of this Agreement,
                                        \n“<\/font>Transaction Documents<\/b><\/font>” means all documents or agreements required to be delivered by any party under this Agreement including the Certificate of
                                        \nMerger, the Escrow Agreement, the Voting Agreements, the Stockholders Agreements, the Affiliate Agreements, the Noncompetition Agreements and the Releases. <\/font><\/p>\n
                                            (b) The
                                        \nexecution and delivery by Target of this Agreement and the Transaction Documents to which it is or will become a party does not, and the consummation of the
                                        \ntransactions contemplated by this Agreement and the Transaction Documents to which it is or will become a party will not, (i) conflict with, or result in any violation or breach of any
                                        \nprovision of the Certificate of Incorporation or Bylaws
                                        \nof Target, (ii) result in any violation or breach of, or constitute (with or without notice or lapse of time, or both) a default (or give rise to a right of termination, cancellation or
                                        \nacceleration of any obligation or loss of any benefit) under any of the terms, conditions or provisions of any note, bond, mortgage, indenture, lease, contract or other agreement, instrument or
                                        \nobligation to which Target is a party or by which it or any of its properties or assets may be bound, or (iii) conflict or violate any permit, concession, franchise, license, judgment, order,
                                        \ndecree, statute, law, ordinance, rule or regulation applicable to Target or any of its properties or assets, except in the case of (ii) and (iii) for any such conflicts, violations,
                                        \ndefaults, terminations, cancellations or accelerations which would not reasonably be expected to have a Material Adverse Effect on Target. <\/font><\/p>\n
                                            (c) None
                                        \nof the execution and delivery by Target of this Agreement or of any other Transaction Document to which Target is or will become a party or the consummation of
                                        \nthe transactions contemplated by this Agreement or such Transaction Document will require any consent, approval, order or authorization of, or registration, declaration or filing with, any court,
                                        \nadministrative agency <\/font><\/p>\n<\/ul>\n
                                        9<\/font><\/p>\n
                                        \n
                                          \n

                                          \nor commission or other governmental authority or instrumentality (“<\/font>Governmental Entity<\/b><\/font>“), except for (i) the filing of the Certificate of Merger
                                          \nwith the Delaware Secretary of State, (ii) such consents, approvals, orders, authorizations, registrations, declarations and filings as may be required under applicable federal and state
                                          \nsecurities laws, (iii) such filings as may be required under applicable Antitrust Laws (as defined in Section 7.3(b)), and (iv) such other consents, authorizations, filings,
                                          \napprovals and registrations which are listed on the Target Disclosure Schedule or which, if not obtained or made, could be expected to have a Material Adverse Effect on Target. <\/font><\/p>\n<\/ul>\n
                                              Section 3.4  Financial
                                          \nStatements; Absence of Undisclosed Liabilities<\/u>. <\/font><\/p>\n
                                            \n
                                                (a) Target
                                            \nhas delivered to Acquiror copies of Target’s unaudited consolidated balance sheet as of April 30, 2000 (the “<\/font>Most Recent
                                            \nBalance Sheet<\/b><\/font>“) and the related unaudited consolidated statements of operations, stockholders’ equity and cash flow for the three month period then ended (together with the
                                            \nMost Recent Balance Sheet, the <\/font>“Target Interim Financials”<\/b><\/font>) and Target’s audited consolidated balance sheet as of July 31, 1999 and
                                            \nJanuary 31, 2000, and the related audited consolidated statements of operations, stockholders’ equity and cash flows for the fiscal year ended July 31, 1999 and the six months ended
                                            \nJanuary 31, 2000, respectively (collectively, the “<\/font>Target Financial Statements<\/b><\/font>“). <\/font><\/p>\n
                                                (b) Other
                                            \nthan as set forth on Schedule 3.4 of the Target Disclosure Schedule, the Target Financial Statements are in accordance with the books and records of
                                            \nTarget and present fairly in all material respects, subject to adjustments approved by both Acquiror and Target, the financial position, results of operations and cash flows of Target as of their
                                            \nhistorical dates and for the periods indicated. The Target Financial Statements have been prepared in accordance with generally accepted accounting
                                            \nprinciples applied on a basis consistent with prior periods. The reserves, if any, reflected on the Target Financial Statements are adequate in light of the contingencies with respect to which they
                                            \nwere made. <\/font><\/p>\n
                                                (c) Target
                                            \nhas no material debt, liability, or obligation of any nature, whether accrued, absolute, contingent, or otherwise, and whether due or to become due, that is
                                            \nnot reflected or reserved against in the Most Recent Balance Sheet, except for those that may have been incurred after the date of the Most Recent Balance Sheet or that would not reasonably be
                                            \nrequired, in accordance with generally accepted accounting principles applied on a basis consistent with prior periods, to be included in a balance sheet or the notes thereto. All debts, liabilities,
                                            \nand obligations incurred after the date of the Most Recent Balance Sheet were incurred in the ordinary course of business and are not material both individually and in the aggregate to Target or its
                                            \nbusiness. <\/font><\/p>\n<\/ul>\n
                                                Section 3.5  Tax
                                            \nMatters<\/u>. <\/font><\/p>\n
                                              \n
                                                  (a) For
                                              \npurposes of this Section 3.5 and other provisions of this Agreement relating to Taxes, the following definitions shall apply: <\/font><\/p>\n
                                                \n
                                                     (i) The
                                                \nterm “<\/font>Taxes<\/b><\/font>” shall mean all taxes, however denominated, including any interest, penalties or other additions to
                                                \ntax that may become payable in respect thereof, (A) imposed by any federal, territorial, state, local or foreign government or any agency or political subdivision of any such government, which
                                                \ntaxes shall include, without limiting the generality of the foregoing, all income or profits taxes (including but not limited to, federal income taxes and state income taxes), payroll and employee
                                                \nwithholding taxes, unemployment insurance, social security taxes, sales and use taxes, ad valorem taxes, excise taxes, franchise taxes, gross receipts taxes, business license taxes, occupation taxes,
                                                \nreal and personal property taxes, stamp taxes, environmental taxes, ozone depleting chemicals taxes, transfer taxes, workers’ compensation, Pension Benefit Guaranty Corporation premiums and other
                                                \ngovernmental charges, and other obligations of the same or of a similar nature to any of the foregoing, which are required to be paid, withheld or collected, (B) any liability for the payment
                                                \nof amounts referred to in (A) as a result of being a member of any affiliated, consolidated, combined or unitary group, or (C) any liability for amounts referred to in (A) or
                                                \n(B) as a result of any obligations to indemnify another person. <\/font><\/p>\n<\/ul>\n<\/ul>\n
                                                10<\/font><\/p>\n
                                                \n
                                                  \n
                                                    \n<\/ul>\n<\/ul>\n
                                                      \n
                                                        \n
                                                            (ii) The
                                                        \nterm “<\/font>Returns<\/b><\/font>” shall mean all reports, estimates, declarations of estimated tax, information statements and
                                                        \nreturns relating to, or required to be filed in connection with, any Taxes, including information returns or reports with respect to backup withholding and other payments to third parties. <\/font><\/p>\n<\/ul>\n
                                                            (b) All
                                                        \nReturns required to be filed prior to the date hereof by or on behalf of Target have been duly filed on a timely basis, and such Returns are true, complete and
                                                        \ncorrect in all material respects. All Taxes shown to be payable on such Returns or on subsequent assessments with respect thereto, and all payments of estimated Taxes required to be made prior to the
                                                        \ndate hereof by or on behalf of Target under Section 6655 of the Code or comparable provisions of state, local or foreign law, have been paid in full on a timely basis or have been accrued on
                                                        \nthe Most Recent Balance Sheet, and no other Taxes are payable by Target with respect to items or periods covered by such Returns (whether or not shown on or reportable on such Returns). Target has
                                                        \nwithheld and paid over all Taxes required to have been withheld and paid over prior to the date hereof, and complied with all information reporting and backup withholding requirements, including
                                                        \nmaintenance of required records with respect thereto, in connection with amounts paid or owing to any employee, creditor, independent contractor, or other third party. There are no liens on any of the
                                                        \nassets of Target with respect to Taxes, other than liens for Taxes not yet due and payable or for Taxes that Target is contesting in good faith through appropriate proceedings and for which
                                                        \nappropriate reserves have been established on the Most Recent Balance Sheet. Target has not at any time been (i) a member of an affiliated group of corporations filing consolidated, combined or
                                                        \nunitary income or franchise tax returns, or (ii) a member of any partnership or joint venture for a period for which the statue of limitations for any Tax potentially applicable as a result of
                                                        \nsuch membership has not expired. <\/font><\/p>\n
                                                            (c) The
                                                        \namount of Target’s liability for unpaid Taxes (whether actual or contingent) for all periods through the date of the Most Recent Balance Sheet does not, in the
                                                        \naggregate, exceed the amount of the current liability accruals for Taxes reflected on the Most Recent Balance Sheet, and the Most Recent Balance Sheet reflects proper accrual in accordance with
                                                        \ngenerally accepted accounting principles applied on a basis consistent with prior periods of all liabilities for Taxes payable after the date of the Most Recent Balance Sheet attributable to
                                                        \ntransactions and events occurring prior to such date. No liability for Taxes has been incurred (or prior to Closing will be incurred) since such date other than in the ordinary course of business. <\/font><\/p>\n
                                                            (d) Acquiror
                                                        \nhas been furnished by Target with true and complete copies of (i) relevant portions of income tax audit reports, statements of deficiencies, closing
                                                        \nor other agreements received by or on behalf of Target relating to Taxes, and (ii) all federal and state income or franchise tax Returns and state sales and use tax Returns for or including
                                                        \nTarget for all periods since the inception of Target.
                                                        \nTarget does not do business in or derive income from any state other than states for which Returns have been duly filed and furnished to Acquiror. <\/font><\/p>\n
                                                            (e) The
                                                        \nReturns of or including Target have never been audited by a government or taxing authority, nor is any such audit in process, pending or, to Target’s knowledge,
                                                        \nthreatened (either in writing or verbally, formally or informally). No deficiencies exist or have been asserted (either in writing or verbally, formally or informally), and Target has not received
                                                        \nnotice (either in writing or verbally, formally or informally) that it has not filed a Return or paid Taxes required to be filed or paid. Target is neither a party to any action or proceeding for
                                                        \nassessment or collection of Taxes, nor has such event been asserted or threatened (either in writing or orally, formally or informally) against Target or any of its assets. No waiver or extension of
                                                        \nany statute of limitations is in effect with respect to Taxes or Returns of Target. Target has disclosed on its federal and state income and franchise tax Returns all positions taken therein that
                                                        \ncould give rise to a substantial understatement penalty within the meaning of Code Section 6662 or comparable provisions of applicable state, local, foreign or other tax laws. <\/font><\/p>\n
                                                            (f)  Except
                                                        \nas may be required as a result of the Merger, Target and its subsidiaries have not been and will not be required to include any material adjustment in
                                                        \nTaxable income for any Tax period <\/font><\/p>\n<\/ul>\n
                                                        11<\/font><\/p>\n
                                                        \n
                                                          \n

                                                          \n(or portion thereof) pursuant to Section 481 or Section 263A of the Code or any comparable provision under state or foreign Tax laws as a result of transactions, events or accounting
                                                          \nmethods employed prior to the Closing. <\/font><\/p>\n
                                                              (g) Target
                                                          \nis not, nor has it ever been, a party to any tax sharing agreement. <\/font><\/p>\n
                                                              (h) Target
                                                          \nis not, nor has it been, a United States real property holding corporation within the meaning of Section 897(c)(2) of the Code during the applicable
                                                          \nperiod specified in Section 897(c)(1)(A)(ii) of the Code, and Acquiror is not required to withhold tax by reason of Section 1445 of the Code. Target is not a “consenting
                                                          \ncorporation” under Section 341(f) of the Code. Target has not entered into any compensatory agreements with respect to the performance of services which payment thereunder would result in a
                                                          \nnondeductible expense to Target pursuant to Section 280G of the Code or an excise tax to the recipient of such payment pursuant to Section 4999 of the Code. Target has not agreed to, nor
                                                          \nis it required to make any adjustment under Code Section 481(a) by reason of, a change in accounting method. Target is not, nor has it been, a “reporting corporation” subject to the information
                                                          \nreporting and record maintenance requirements of Section 6038A and the regulations thereunder. Target is in compliance with the terms and conditions of any applicable tax exemptions, agreements
                                                          \nor orders of any foreign government to which it may be subject or which it may have claimed, and the transactions contemplated by this Agreement will not have any adverse effect on such compliance. <\/font><\/p>\n<\/ul>\n
                                                              Section 3.6  Absence
                                                          \nof Certain Changes or Events<\/u>. Since April 30, 2000, other than as set forth on the Target Disclosure
                                                          \nSchedule, Target has not: <\/font><\/p>\n
                                                            \n
                                                                (a) suffered
                                                            \nany change that has resulted, or could be reasonably expected to result, in a Material Adverse Effect on Target; <\/font><\/p>\n
                                                                (b) suffered
                                                            \nany damage, destruction or loss, whether covered by insurance or not, that has resulted, or could be reasonably expected to result, in a Material Adverse
                                                            \nEffect on Target; <\/font><\/p>\n
                                                                (c) granted
                                                            \nor agreed to make any increase in the compensation payable or to become payable by Target to its officers or employees; <\/font><\/p>\n
                                                                (d) declared,
                                                            \nset aside or paid any dividend or made any other distribution on or in respect of the shares of the capital stock of Target or declared any direct or
                                                            \nindirect redemption, retirement, purchase or other acquisition by Target of such shares (other than the repurchase of shares of Target Common Stock from terminated employees pursuant to the terms of
                                                            \noutstanding stock restriction or similar agreements; <\/font><\/p>\n
                                                                (e) issued
                                                            \nany shares of capital stock of Target or any warrants, rights, options or entered into any commitment relating to the shares of Target, except for the
                                                            \nissuance of shares of Target capital stock pursuant to the exercise of Target Options and Target Warrants listed in the Target Disclosure Schedule and the conversion of outstanding Target Preferred
                                                            \nStock; <\/font><\/p>\n
                                                                (f)  made
                                                            \nany change in the accounting methods or practices it follows, whether for general financial or tax purposes, or any change in depreciation or amortization
                                                            \npolicies or rates adopted therein; <\/font><\/p>\n
                                                                (g) sold,
                                                            \nleased, abandoned or otherwise disposed of any real property or any machinery, equipment or other operating property with an individual net book value in
                                                            \nexcess of $5,000; <\/font><\/p>\n
                                                                (h) sold,
                                                            \nassigned, transferred, licensed or otherwise disposed of any patent, trademark, trade name, brand name, copyright (or pending application for any patent,
                                                            \ntrademark or copyright) invention, work
                                                            \nof authorship, process, know-how, formula or trade secret or interest thereunder or other intangible asset; <\/font><\/p>\n
                                                                (i)  permitted
                                                            \nor allowed any of its property or assets to be subjected to any mortgage, deed of trust, pledge, lien, security interest or other encumbrance of any kind
                                                            \n(except those permitted under Section 3.7); <\/font><\/p>\n<\/ul>\n
                                                            12<\/font><\/p>\n
                                                            \n
                                                              \n

                                                              \n    (j)  made any capital expenditure or commitment individually in excess of $10,000 (with the aggregate of all such capital expenditures and commitments during such
                                                              \nperiod not exceeding $750,000); <\/font><\/p>\n
                                                                  (k) paid,
                                                              \nloaned or advanced any amount to, or sold, transferred or leased any properties or assets to, or entered into any agreement or arrangement with, any of its
                                                              \nAffiliates (as defined in Section 3.16), officers, directors or stockholders or any affiliate of any of the foregoing; <\/font><\/p>\n
                                                                  (l)  made
                                                              \nany amendment to or terminated any agreement which, if not so amended or terminated, would be required to be disclosed on the Target Disclosure Schedule; or <\/font><\/p>\n
                                                                  (m) agreed
                                                              \nto take any action described in this Section 3.6 or outside of its ordinary course of business or which would constitute a breach of any of the
                                                              \nrepresentations of Target contained in this Agreement. <\/font><\/p>\n<\/ul>\n
                                                                  Section 3.7  Title
                                                              \nand Related Matters<\/u>. Target has good and valid title to all its properties, interests in properties and assets,
                                                              \nreal and personal, free and clear of all mortgages, liens, pledges, charges or encumbrances of any kind or character, except the lien of current taxes not yet due and payable and minor imperfections
                                                              \nof and encumbrances on title, if any, as do not materially detract from the value of or interfere with the present use of the property affected thereby. The equipment of Target used in the operation
                                                              \nof its business is, taken as a whole, (i) adequate for the business conducted by Target and (ii) in good operating condition and repair, ordinary wear and tear excepted. All personal
                                                              \nproperty leases to which Target is a party are valid, binding, enforceable against the parties thereto and in effect in accordance with their respective terms, except to the extent that enforceability
                                                              \nmay be limited by applicable bankruptcy, reorganization, insolvency, moratorium, or other laws affecting the enforcement of creditors’ rights generally and by principles of equity, regardless of
                                                              \nwhether such enforceability is considered in a proceeding at law or in equity. To the knowledge of Target, there is not under any of such leases any existing default or event of default or event
                                                              \nwhich, with notice or lapse of time or both,
                                                              \nwould constitute a default. The Target Disclosure Schedule contains a description of all items of personal property with an individual net book value in excess of $5,000 and real property leased or
                                                              \nowned by Target, describing its interest in said property. True and correct copies of Target’s real property and personal property leases have been provided to Acquiror or its representatives. <\/font><\/p>\n
                                                                  Section 3.8  Proprietary
                                                              \nRights<\/u>. <\/font><\/p>\n
                                                                \n
                                                                    (a) Target
                                                                \nowns all right, title and interest in and to, or otherwise possesses legally enforceable rights, or is licensed to use, all patents, copyrights, technology,
                                                                \nsoftware, software tools, know-how, processes, trade secrets, trademarks, service marks, trade names, Internet domain names and other proprietary rights used in the conduct of Target’s
                                                                \nbusiness as conducted to the date of this Agreement, including, without limitation, the technology, information, databases, data lists, data compilations, and all proprietary rights developed or
                                                                \ndiscovered or used in connection with or contained in all versions and implementations of Target’s World Wide Web sites (including www.egroups.com and the other domain names listed in the Target
                                                                \nDisclosure Schedule) or any product which has been or is being distributed or sold by Target or currently is under development by Target or has previously been under development by Target
                                                                \n(collectively, including such Web sites, the “<\/font>Target Products<\/b><\/font>“), free and clear of all liens, claims and encumbrances (including without limitation
                                                                \nlicensing and distribution rights) (all of which rights are referred to as “<\/font>Target Proprietary Rights<\/b><\/font>“). The Target Disclosure Schedule contains an
                                                                \naccurate and complete (i) list of all patents, trademarks (with separate listings of registered and unregistered trademarks), trade names, Internet domain names and registered copyrights in or
                                                                \nrelated to the Target Products or otherwise included in the Target Proprietary Rights and all applications and registration statements therefor, including the jurisdictions in which each such Target
                                                                \nProprietary Right has been issued or registered or in which any such application of such issuance and registration has been filed, (ii) list of all licenses and other agreements with third
                                                                \nparties (the “<\/font>Third Party Licenses<\/b><\/font>“) relating to any material patents, copyrights, trade secrets, software, inventions, technology,
                                                                \nknow-how, processes or other proprietary rights that Target is licensed or otherwise authorized by such third parties to use, market, distribute or incorporate in Target Products <\/font><\/p>\n<\/ul>\n
                                                                13<\/font><\/p>\n
                                                                \n
                                                                  \n

                                                                  \n(such patents, copyrights, trade secrets, software, inventions, technology, know-how, processes or other proprietary rights are collectively referred to as the
                                                                  \n“<\/font>Third Party Technology<\/b><\/font>“) and (iii) list of all licenses and other agreements with third parties relating to any material information,
                                                                  \ncompilations, data lists or databases that Target is licensed or otherwise authorized by such third parties to use, market, disseminate distribute or incorporate in Target Products. All of Target’s
                                                                  \npatents, copyrights, trademarks, trade names or Internet domain name registrations related to or in the Target Products are valid and in full force and effect, and consummation of the transactions
                                                                  \ncontemplated by this Agreement will not alter or impair any such rights. No claims have been asserted or, to Target’s knowledge, threatened against Target (and Target is not aware of any claims which
                                                                  \nare likely to be asserted or threatened against Target or which have been asserted or threatened against others relating to Target Proprietary Rights or Target Products) by any person challenging
                                                                  \nTarget’s use, possession, manufacture, sale or distribution of Target Products under any Target Proprietary Rights (including, without limitation, the Third Party Technology) or challenging or
                                                                  \nquestioning the validity or effectiveness of any material
                                                                  \nlicense or agreement relating thereto (including, without limitation, the Third Party Licenses) or alleging a violation of any person’s or entity’s privacy, personal or confidentiality rights. Target
                                                                  \nknows of no valid basis for any claim of the type specified in the immediately preceding sentence which could in any material way relate to or interfere with the continued enhancement and exploitation
                                                                  \nby Target of any of the Target Products. None of the Target Products nor the use or exploitation of any Target Proprietary Rights in Target’s current business infringes on the rights of or constitutes
                                                                  \nmisappropriation of any proprietary information or intangible property right of any third person or entity, including without limitation any patent, trade secret, copyright, trademark or trade name,
                                                                  \nand Target has not been sued or named in any suit, action or proceeding which involves a claim of such infringement, misappropriation or unfair competition. <\/font><\/p>\n
                                                                      (b) Target
                                                                  \nhas not granted any third party any right to reproduce, distribute, market or exploit any of the Target Products or any adaptations, translations, or
                                                                  \nderivative works based on the Target Products or any portion thereof. Except with respect to the rights of third parties to the Third Party Technology and no third party has any express right to
                                                                  \nreproduce, distribute, market or exploit any works or materials of which any of the Target Products are a “derivative work” as that term is defined in the United States Copyright Act, Title 17, U.S.C.
                                                                  \nSection 101. <\/font><\/p>\n
                                                                      (c) All
                                                                  \nmaterial designs, drawings, specifications, source code, object code, scripts, documentation, flow charts, diagrams, data lists, databases, compilations and
                                                                  \ninformation incorporating, embodying or reflecting any of the Target Products at any stage of their development (the “<\/font>Target Components<\/b><\/font>“) were written,
                                                                  \ndeveloped and created solely and exclusively by employees of Target without the assistance of any third party or entity or were created by third parties who assigned ownership of their rights to
                                                                  \nTarget by means of valid and enforceable confidentiality and invention assignment agreements, copies of which have been delivered to Acquiror. Target has at all times used commercially reasonable
                                                                  \nefforts customary in its industry to treat the Target Proprietary Rights related to Target Products and Target Components as containing trade secrets and has not disclosed or otherwise dealt with such
                                                                  \nitems in a manner intended or reasonably likely to cause the loss of such trade secrets by release into the public domain. <\/font><\/p>\n
                                                                      (d) To
                                                                  \nTarget’s knowledge, no employee, contractor or consultant of Target is in violation in any material respect of any term of any written employment contract,
                                                                  \npatent disclosure agreement or any other written contract or agreement relating to the relationship of any such employee, consultant or contractor with Target or, to Target’s knowledge, any other
                                                                  \nparty because of the nature of the business conducted by Target or proposed to be conducted by Target. The Target Disclosure Schedule lists all employees, contractors and consultants who have
                                                                  \nparticipated in any way in the development of any material portion of the Target Products or the Target Proprietary Rights. <\/font><\/p>\n
                                                                      (e) Each
                                                                  \nperson presently or previously employed by Target (including independent contractors, if any) has executed a confidentiality, non-disclosure and
                                                                  \nproprietary inventions assignment agreement pursuant to the form of agreement previously provided to Acquiror or its representatives. <\/font><\/p>\n<\/ul>\n
                                                                  14<\/font><\/p>\n
                                                                  \n
                                                                    \n

                                                                    \n    (f)  No product liability or warranty claims have been communicated in writing to or threatened against Target. <\/font><\/p>\n
                                                                        (g) To
                                                                    \nTarget’s knowledge, there is no material unauthorized use, disclosure, infringement or misappropriation of any Target Proprietary Rights, or any Third Party
                                                                    \nTechnology to the extent licensed by or through Target, by any third party, including any employee, former employee or independent contractor of Target. Target has not entered into any agreement to
                                                                    \nindemnify any other person against any charge of infringement of any Target Proprietary Rights. <\/font><\/p>\n
                                                                        (h) Target
                                                                    \nhas taken all steps customary and reasonable in its industry to protect and preserve the confidentiality and proprietary nature of all Intellectual Property
                                                                    \nand other confidential information not otherwise protected by patents, patent applications or copyright (“<\/font>Confidential Information<\/b><\/font>“). All use,
                                                                    \ndisclosure or appropriation by Target or, to the best knowledge of Target, by another party pursuant to rights granted to it by Target, of Confidential Information owned by Target to a third party has
                                                                    \nbeen pursuant to the terms of a written agreement between Target and such third party. All use, disclosure or appropriation by Target of Confidential Information not owned by Target has been pursuant
                                                                    \nto the terms of a written agreement between Target and the owner of such Confidential Information, or is otherwise lawful. <\/font><\/p>\n<\/ul>\n
                                                                        Section 3.9  Employee
                                                                    \nBenefit Plans<\/u>. <\/font><\/p>\n
                                                                      \n
                                                                          (a) The
                                                                      \nTarget Disclosure Schedule lists, with respect to Target and any trade or business (whether or not incorporated) which is treated as a single employer with
                                                                      \nTarget (an “<\/font>ERISA Affiliate<\/b><\/font>“) within the meaning of Section 414(b), (c), (m) or (o) of the Code, (i) all employee benefit
                                                                      \nplans (as defined in Section 3(3) of the Employee Retirement Income Security Act of 1974, as amended (“<\/font>ERISA<\/b><\/font>“), (ii) each loan to a
                                                                      \nnon-officer employee, loans to officers and directors and any stock option, stock purchase, phantom stock, stock appreciation right, supplemental retirement, severance, sabbatical,
                                                                      \nmedical, dental, vision care, disability, employee relocation, cafeteria benefit (Code Section 125) or dependent care (Code Section 129), life insurance or accident insurance plans,
                                                                      \nprograms or arrangements, (iii) all bonus, pension, profit sharing, savings, deferred compensation or incentive plans, programs or arrangements, (iv) other fringe or employee benefit
                                                                      \nplans, programs or arrangements that apply to senior management of Target and that do not generally apply to all employees, and (v) any current or former employment
                                                                      \nor executive compensation or severance agreements, written or otherwise, for the benefit of, or relating to, any present or former employee, consultant or director of Target as to which (with respect
                                                                      \nto any of items (i) through (v) above) any potential liability is borne by Target (together, the “<\/font>Target Employee Plans<\/b><\/font>“). <\/font><\/p>\n
                                                                          (b) Target
                                                                      \nhas delivered to Acquiror or its representatives a copy of each of the Target Employee Plans and related plan documents (including trust documents, insurance
                                                                      \npolicies or contracts, employee booklets, summary plan descriptions and other authorizing documents, and, to the extent still in its possession, any material employee communications relating thereto)
                                                                      \nand has, with respect to each Target Employee Plan which is subject to ERISA reporting requirements, provided copies of any Form 5500 reports filed for the last three plan years. Any Target
                                                                      \nEmployee Plan intended to be qualified under Section 401(a) of the Code has either obtained from the Internal Revenue Service a favorable determination letter as to its qualified status under
                                                                      \nthe Code, including all amendments to the Code effected by the Tax Reform Act of 1986 and subsequent legislation, or has applied to the Internal Revenue Service for such a determination letter prior
                                                                      \nto the expiration of the requisite period under applicable Treasury Regulations or Internal Revenue Service pronouncements in which to apply for such determination letter and to make any amendments
                                                                      \nnecessary to obtain a favorable determination. Target has also furnished Acquiror with the most recent Internal Revenue Service determination letter issued with respect to each such Target Employee
                                                                      \nPlan, and nothing has occurred since the issuance of each such letter which could reasonably be expected to cause the loss of the tax-qualified status of any Target Employee Plan subject
                                                                      \nto Code Section 401(a). <\/font><\/p>\n
                                                                          (c) (i) None
                                                                      \nof the Target Employee Plans promises or provides retiree medical or other retiree welfare benefits to any person; (ii) there has been no
                                                                      \n“prohibited transaction,” as such term is defined <\/font><\/p>\n<\/ul>\n
                                                                      15<\/font><\/p>\n
                                                                      \n
                                                                        \n

                                                                        \nin Section 406 of ERISA and Section 4975 of the Code, with respect to any Target Employee Plan; (iii) each Target Employee Plan has been administered in accordance with its terms
                                                                        \nand in compliance with the requirements prescribed by any and all statutes, rules and regulations (including ERISA and the Code), and Target and each subsidiary or ERISA Affiliate have performed all
                                                                        \nmaterial obligations required to be performed by them under, are not in any material respect in default, under or violation of, and have no knowledge of any material default or violation by any other
                                                                        \nparty to, any of the Target Employee Plans; (iv) neither Target nor any subsidiary or ERISA Affiliate is subject to any liability or penalty under Sections 4976 through 4980 of the Code or
                                                                        \nTitle I of ERISA with respect to any of the Target Employee Plans; (v) all contributions required to be made by Target or any subsidiary or ERISA Affiliate to any Target Employee Plan have been
                                                                        \nmade on or before their due dates and a reasonable amount has been accrued for contributions to each Target Employee Plan for the current plan years; (vi) with respect to each Target Employee
                                                                        \nPlan, no “reportable event” within the meaning of Section 4043 of ERISA (excluding any such event for which the thirty (30) day notice requirement has been waived under the regulations
                                                                        \nto Section 4043 of ERISA) nor any event described in Section 4062, 4063 or 4041 of ERISA has occurred; and (vii) no Target Employee Plan is covered by, and neither Target nor any
                                                                        \nsubsidiary or ERISA Affiliate has incurred or expects to incur any material liability under Title IV of ERISA or Section 412 of the Code. With respect to each Target Employee Plan
                                                                        \nsubject to ERISA as either an employee pension plan within the meaning of Section 3(2) of ERISA or an employee welfare benefit plan within the meaning of Section 3(1) of ERISA, Target
                                                                        \nhas prepared in good faith and timely filed all requisite governmental reports (which were true and correct as of the date filed) and has properly and timely filed and distributed or posted all
                                                                        \nnotices and reports to employees required to be filed, distributed or posted with respect to each such Target Employee Plan. No suit, administrative proceeding, action or other litigation has been
                                                                        \nbrought, or to the knowledge of Target is threatened, against or with respect to any such Target Employee Plan, including any audit or inquiry by the IRS or United States Department of Labor. Neither
                                                                        \nTarget nor any ERISA Affiliate is a party to, or has made any contribution to or otherwise incurred any obligation under, any “multi-employer plan” as defined in Section 3(37) of ERISA. <\/font><\/p>\n
                                                                            (d) With
                                                                        \nrespect to each Target Employee Plan, Target has complied with (i) the applicable health care continuation and notice provisions of the Consolidated
                                                                        \nOmnibus Budget Reconciliation Act of 1985 (“<\/font>COBRA<\/b><\/font>“) and the proposed regulations thereunder, (ii) the applicable requirements of the Family Leave
                                                                        \nAct of 1993 and the regulations thereunder, and (iii) the applicable requirements of the Health Insurance Portability and Accountability Act of 1996
                                                                        \n(“<\/font>HIPAA<\/b><\/font>“) and the temporary regulations thereunder. <\/font><\/p>\n
                                                                            (e) The
                                                                        \nconsummation of the transactions contemplated by this Agreement will not (i) entitle any current or former employee or other service provider of Target
                                                                        \nor any other ERISA Affiliate to severance benefits or any other payment (including, without limitation, unemployment compensation, golden parachute or bonus), except as expressly provided in this
                                                                        \nAgreement, or (ii) accelerate the time of payment or vesting of any such benefits, or (iii) increase or accelerate any benefits or the amount of compensation due any such employee or
                                                                        \nservice provider. <\/font><\/p>\n
                                                                            (f)  There
                                                                        \nhas been no amendment to, written interpretation or announcement (whether or not written) by Target or other ERISA Affiliate relating to, or change in
                                                                        \nparticipation or coverage under, any Target Employee Plan which would materially increase the expense of maintaining such Plan above the level of expense incurred with respect to that Plan for the
                                                                        \nmost recent fiscal year included in the Target Financial Statements. <\/font><\/p>\n<\/ul>\n
                                                                            Section 3.10  Bank
                                                                        \nAccounts<\/u>. The Target Disclosure Schedule sets forth the names and locations of all banks, trust companies,
                                                                        \nsavings and loan associations, and other financial institutions at which Target maintains accounts of any nature and the names of all persons authorized to draw thereon or make withdrawals therefrom. <\/font><\/p>\n
                                                                            Section 3.11  Contracts<\/u>. <\/font><\/p>\n
                                                                        16<\/font><\/p>\n
                                                                        \n
                                                                          \n
                                                                              (a) Except
                                                                          \nas identified on Schedule 3.11(a) of the Target Disclosure Schedules: <\/font><\/p>\n
                                                                            \n
                                                                                 (i) Target
                                                                            \nhas no agreements, contracts or commitments that provide for the sale, licensing or distribution by Target of any Target Products or Target Proprietary
                                                                            \nRights. Without limiting the foregoing, except as set forth on the Target Disclosure Schedule, Target has not granted to any third party (including, without limitation, original equipment
                                                                            \nmanufacturers (“<\/font>OEMs<\/b><\/font>“) and site-license customers) any rights to reproduce, manufacture or distribute any of the Target Products, nor has
                                                                            \nTarget granted to any third party any exclusive rights of any kind (including, without limitation, exclusivity with regard to categories of advertisers on Target’s World Wide Web site, territorial
                                                                            \nexclusivity or exclusivity with respect to particular versions, implementations or translations of any of the Target Products), nor has Target granted any third party any right to market any of the
                                                                            \nTarget Products under any private label or “OEM” arrangements, nor has Target granted any license of any Target trademarks or service marks. <\/font><\/p>\n
                                                                                (ii) Target
                                                                            \nhas no Third Party Licenses. <\/font><\/p>\n
                                                                                (iii) Target
                                                                            \nhas no agreements, contracts or commitments that call for fixed and\/or contingent payments or expenditures by or to Target (including, without limitation,
                                                                            \nany advertising or revenue sharing arrangement). <\/font><\/p>\n
                                                                                (iv) Target
                                                                            \nhas no outstanding sales or advertising contract, commitment or proposal (including, without limitation, insertion orders, slotting agreements or other
                                                                            \nagreements under which Target has allowed third parties to advertise on or otherwise be included in Target’s World Wide Web sites). <\/font><\/p>\n
                                                                                (v) Target
                                                                            \nhas no outstanding agreements, contracts or commitments with officers, employees, agents, consultants, advisors, salesmen, sales representatives,
                                                                            \ndistributors or dealers. <\/font><\/p>\n
                                                                                (vi) Target
                                                                            \nhas no employment agreements. Target also has no independent contractor or similar agreement, contract or commitment that is not terminable on thirty
                                                                            \n(30) days’ notice or less without penalty, liability or premium of any type, including, without limitation, severance or termination pay. <\/font><\/p>\n
                                                                               (vii) Target
                                                                            \nhas no currently effective collective bargaining or union agreements, contracts or commitments. <\/font><\/p>\n
                                                                               (viii) Target
                                                                            \nis not restricted by agreement from competing with any person or from carrying on its business anywhere in the world. <\/font><\/p>\n
                                                                                (ix) Target
                                                                            \nhas not guaranteed any obligations of other persons or made any agreements to acquire or guarantee any obligations of other persons. <\/font><\/p>\n
                                                                                (x) Target
                                                                            \nhas no outstanding loan or advance to any person; nor is it party to any line of credit, standby financing, revolving credit or other similar financing
                                                                            \narrangement of any sort which would permit the borrowing by Target of any sum. <\/font><\/p>\n
                                                                                (xi) Target
                                                                            \nhas no agreements pursuant to which Target has agreed to manufacture for, supply to or distribute to any third party any Target Products or Target
                                                                            \nComponents. <\/font><\/p>\n<\/ul>\n<\/ul>\n
                                                                                The
                                                                            \nagreements, documents and instruments set forth on the Target Disclosure Schedule are referred to herein as <\/font>“Material Contracts”<\/b><\/font>.
                                                                            \nTrue and correct copies of each document or instrument listed on the Target Disclosure Schedule pursuant to this Section 3.11(a) have been provided to Acquiror or its representatives. <\/font><\/p>\n
                                                                              \n
                                                                                  (b) All
                                                                              \nof the Material Contracts listed on the Target Disclosure Schedule are valid, binding, in full force and effect, and enforceable by Target in accordance with
                                                                              \ntheir respective terms, except to the extent that enforceability may be limited by applicable bankruptcy, reorganization, insolvency, moratorium or other laws affecting the enforcement of creditors’
                                                                              \nrights generally and by general principles of equity, regardless of whether such enforceability is considered in a proceeding at law or in equity. <\/font><\/p>\n<\/ul>\n
                                                                              17<\/font><\/p>\n
                                                                              \n
                                                                                \n

                                                                                \nNo Material Contract contains any liquidated damages, penalty or similar provision. To the knowledge of Target, no party to any such Material Contract intends to cancel, withdraw, modify or amend such
                                                                                \ncontract, agreement or arrangement. <\/font><\/p>\n
                                                                                    (c) Target
                                                                                \nis not in default under or in breach or violation of, nor, to Target’s knowledge, is there any valid basis for any claim of default by Target under, or
                                                                                \nbreach or violation by Target of, any material provision of any Material Contract. To the knowledge of Target, no other party is in default under or in breach or violation of, nor is there any valid
                                                                                \nbasis for any claim of default by any other party under or any breach or violation by any other party of, any Material Contract. <\/font><\/p>\n
                                                                                    (d) Except
                                                                                \nas specifically indicated on the Target Disclosure Schedule, none of the Material Contracts provides for indemnification by Target of any third party. No
                                                                                \nclaims have been made or threatened that could require indemnification by Target, and Target has not paid any amounts to indemnify any third party as a result of indemnification requirements of any
                                                                                \nkind. <\/font><\/p>\n<\/ul>\n
                                                                                    Section 3.12  Orders,
                                                                                \nCommitments and Returns<\/u>. All accepted advertising arrangements entered into by Target, and all material
                                                                                \nagreements, contracts, or commitments for the purchase of supplies by Target, were made in the ordinary course of business. There are no oral contracts or arrangements for the sale of advertising or
                                                                                \nany other product or service by Target. <\/font><\/p>\n
                                                                                    Section 3.13  Compliance
                                                                                \nWith Law<\/u>. Target and the operation of its business are in compliance in all material respects with all
                                                                                \napplicable laws and regulations material to the operation of its business. Neither Target nor, to Target’s knowledge, any of its employees has directly or indirectly paid or delivered any fee,
                                                                                \ncommission or other sum of money or item of property, however characterized, to any finder, agent, government official or other party in the United States or any other country, that was or is in
                                                                                \nviolation of any federal, state, or local statute or law or of any statute or law of any other country having jurisdiction. Target has not participated directly or indirectly in any boycotts or other
                                                                                \nsimilar practices affecting any of its customers. Target has complied in all material respects at all times with any and all applicable federal, state and foreign laws, rules, regulations,
                                                                                \nproclamations and orders relating to the importation or exportation of its products, except for such noncompliances as would not in the aggregate reasonably be expected to have a Material Adverse
                                                                                \nEffect on Target. <\/font><\/p>\n
                                                                                    Section 3.14  Labor
                                                                                \nDifficulties; No Discrimination<\/u>. <\/font><\/p>\n
                                                                                  \n
                                                                                      (a) Target
                                                                                  \nis not engaged in any unfair labor practice and is not in material violation of any applicable laws respecting employment and employment practices, terms and
                                                                                  \nconditions of employment, and wages and hours. There is no unfair labor practice complaint against Target actually pending or, to the knowledge of Target, threatened before the National Labor
                                                                                  \nRelations Board. There is no strike, labor dispute, slowdown, or stoppage actually pending or, to the knowledge of Target, threatened against Target. To the knowledge of Target, no union organizing
                                                                                  \nactivities are taking place with respect to the business of Target. No grievance, nor any arbitration proceeding arising out of or under any collective
                                                                                  \nbargaining agreement is pending and, to the knowledge of Target, no claims therefor exist. No collective bargaining agreement that is binding on Target restricts it from relocating or closing any of
                                                                                  \nits operations. Target has not experienced any material work stoppage or other material labor difficulty. <\/font><\/p>\n
                                                                                      (b) There
                                                                                  \nis and has not been any claim against Target or its officers or employees, or to Target’s knowledge, threatened against Target or its officers or employees,
                                                                                  \nbased on actual or alleged race, age, sex, disability or other harassment or discrimination, or similar tortious conduct, or based on actual or alleged breach of contract with respect to any person’s
                                                                                  \nemployment by Target, nor, to the knowledge of Target, is there any basis for any such claim. <\/font><\/p>\n<\/ul>\n
                                                                                  18<\/font><\/p>\n
                                                                                  \n
                                                                                    \n<\/ul>\n
                                                                                      \n
                                                                                          (c) There
                                                                                      \nare no pending claims against Target or any of its Subsidiaries under any workers compensation plan or policy or for long term disability. Neither Target nor
                                                                                      \nany of its Subsidiaries has any material obligations under COBRA with respect to any former employees or qualifying beneficiaries thereunder. There are no proceedings pending or, to the knowledge of
                                                                                      \nTarget, threatened, between Target and any of its employees, which proceedings have or could reasonably be expected to have a Material Adverse Effect on Target. <\/font><\/p>\n<\/ul>\n
                                                                                          Section 3.15  Trade
                                                                                      \nRegulation<\/u>. All of the prices charged by Target in connection with the marketing or sale of any products or
                                                                                      \nservices have been in compliance with all applicable laws and regulations. No claims have been communicated or threatened in writing against Target with respect to wrongful termination of any dealer,
                                                                                      \ndistributor or any other marketing entity, discriminatory pricing, price fixing, unfair competition, false advertising, or any other violation of any laws or regulations relating to
                                                                                      \nanti-competitive practices or unfair trade practices of any kind, and to Target’s knowledge, no specific situation, set of facts, or occurrence provides any basis for any such claim
                                                                                      \nagainst Target. <\/font><\/p>\n
                                                                                          Section 3.16  Insider
                                                                                      \nTransactions<\/u>. No affiliate (“<\/font>Affiliate<\/b><\/font>“) as defined in
                                                                                      \nRule 12b-2 under the Securities Exchange Act of 1934, as amended (the “<\/font>Exchange Act<\/b><\/font>“) of Target has any interest in any equipment or
                                                                                      \nother property, real or personal, tangible or intangible of Target, including, without limitation, any Target Proprietary Rights or, to the knowledge of Target, any creditor, supplier, customer,
                                                                                      \nmanufacturer, agent, representative, or distributor of Target Products; provided, however, that no such Affiliate or other person shall be deemed to have such an interest solely by virtue of the
                                                                                      \nownership of less than 1% of the outstanding stock or debt securities of any publicly-held company, the stock or debt securities of which are traded on a recognized stock exchange or
                                                                                      \nquoted on the Nasdaq Stock Market. <\/font><\/p>\n
                                                                                          Section 3.17  Employees,
                                                                                      \nIndependent Contractors and Consultants<\/u>. The Target Disclosure Schedule lists all currently effective
                                                                                      \nwritten or oral consulting, independent contractor and\/or employment agreements and other material agreements concluded with individual employees, independent contractors or consultants to which
                                                                                      \nTarget is a party. True and correct copies of all such written agreements have been provided to Acquiror or its representatives. All independent contractors have been properly classified as
                                                                                      \nindependent contractors for the purposes of federal and applicable state tax laws, laws applicable to employee benefits and other applicable law. All salaries and wages paid by Target are in
                                                                                      \ncompliance in all material respects with applicable federal, state and local laws. Also shown on the Target Disclosure Schedule are the names, positions and salaries or rates of pay, including
                                                                                      \nbonuses, of all persons presently employed by, or performing contract services for, Target. No bonus or other payment will become due to Target employees or contractors as a result of the Merger. <\/font><\/p>\n
                                                                                          Section 3.18  Insurance<\/u>.
                                                                                      \nThe Target Disclosure Schedule contains a list of the principal policies of fire, liability and other forms
                                                                                      \nof insurance currently or previously held by Target, and all claims made by Target under such policies. To the knowledge of Target, Target has not done anything, either by way of action or inaction,
                                                                                      \nthat might invalidate such policies in whole or in part. There is no claim pending under any of such policies or bonds as to which coverage has been questioned, denied or disputed by the underwriters
                                                                                      \nof such policies or bonds. All premiums due and payable under all such policies and bonds have been paid and Target is otherwise in compliance with the terms of such policies and bonds in all material
                                                                                      \nrespects. Target has no knowledge of any threatened termination of, or material premium increase with respect to, any of such policies. <\/font><\/p>\n
                                                                                          Section 3.19  Accounts
                                                                                      \nReceivable<\/u>. Subject to any reserves set forth in the Most Recent Balance Sheet, the accounts receivable shown
                                                                                      \non the Most Recent Balance Sheet represent and will represent bona fide claims against debtors for sales and other charges, and are not subject to discount except for normal cash and immaterial trade
                                                                                      \ndiscounts. The amount carried for doubtful accounts and allowances disclosed in the Most Recent Balance Sheet is sufficient to provide for any losses which may be sustained on realization of the
                                                                                      \nreceivables. <\/font><\/p>\n
                                                                                          Section 3.20  Litigation<\/u>.
                                                                                      \nThere is no private or governmental action, suit, proceeding, claim, arbitration or investigation pending
                                                                                      \nbefore any agency, court or tribunal, foreign or domestic, or, to the knowledge of Target, threatened against Target or any of its properties or any of its officers or directors (in <\/font><\/p>\n
                                                                                      19<\/font><\/p>\n
                                                                                      \n

                                                                                      \ntheir capacities as such). There is no judgment, decree or order against Target, or, to the knowledge of Target, any of its directors or officers (in their capacities as such). To Target’s knowledge,
                                                                                      \nno circumstances exist that could reasonably be expected to result in a claim against Target as a result of the conduct of Target’s business (including, without limitation, any claim of infringement
                                                                                      \nof any intellectual property right). The matters described in this Section 3.20 include, but are not limited to, those arising under any applicable federal, state and local laws, regulations
                                                                                      \nand agency interpretations of the same relating to the collection and use of user information gathered in the course of the Company’s operations. <\/font><\/p>\n
                                                                                          Section 3.21  Governmental
                                                                                      \nAuthorizations and Regulations<\/u>. Target has obtained each federal, state, county, local or foreign
                                                                                      \ngovernmental consent, license, permit, grant, or other authorization of a Governmental Entity (i) pursuant to which Target currently operates or holds any interest in any of its properties or
                                                                                      \n(ii) that is required for the operation of Target’s business or the holding of any such interest, and all of such authorizations are in full force and effect. <\/font><\/p>\n
                                                                                          Section 3.22  No
                                                                                      \nOther Investments<\/u>. Except for its ownership of the capital stock of the Subsidiaries identified on
                                                                                      \nSchedule 3.2(d) of the Target Disclosure Schedule, Target does not own or control (directly or indirectly) any capital stock, bonds or other securities of, and does not have any proprietary
                                                                                      \ninterest in, any other corporation, limited liability company, general or limited partnership, firm, association or business organization, entity or enterprise, and Target does not control (directly
                                                                                      \nor indirectly) the management or policies of any other corporation, limited liability company, partnership, firm, association or business organization, entity or enterprise. <\/font><\/p>\n
                                                                                          Section 3.23  Compliance
                                                                                      \nwith Environmental Requirements<\/u>. Target has obtained all permits, licenses and other authorizations which
                                                                                      \nare required under federal, state and local laws applicable to Target and relating to pollution or protection of the environment, including laws or provisions relating to emissions, discharges,
                                                                                      \nreleases or threatened releases of pollutants, contaminants, or hazardous or toxic materials, substances, or wastes into air, surface water, groundwater, or land, or otherwise relating to the
                                                                                      \nmanufacture, processing, distribution, use, treatment, storage, disposal, transport, or handling of pollutants, contaminants or hazardous or toxic materials, substances, or wastes or which are
                                                                                      \nintended to assure the safety of employees, workers or other persons, except where the failure to obtain such authorizations could not be reasonably expected to have a Material Adverse Effect. Target
                                                                                      \nis in compliance in all material respects with all terms and conditions of all such permits, licenses and authorizations. There are no conditions, circumstances, activities, practices, incidents, or
                                                                                      \nactions known to Target which could reasonably be expected to form the basis of any claim, action, suit, proceeding, hearing, or investigation of, by, against or relating to Target, based on or
                                                                                      \nrelated to the manufacture, processing, distribution, use, treatment, storage, disposal, transport, or handling, or the emission, discharge, release or threatened release into the environment, of any
                                                                                      \npollutant, contaminant, or hazardous or toxic substance, material or waste, or relating to the safety of employees, workers or other persons. <\/font><\/p>\n
                                                                                          Section 3.24  Corporate
                                                                                      \nDocuments<\/u>. Target has furnished to Acquiror or its representatives: (a) copies of its Certificate of
                                                                                      \nIncorporation and Bylaws, as amended to date; (b) its minute book containing consents, actions, and meetings of the stockholders, the board of directors and any committees thereof;
                                                                                      \n(c) all material permits, orders, and consents issued by any regulatory agency with respect to Target, or any securities of Target, and all applications for such permits, orders, and consents;
                                                                                      \nand (d) the stock transfer books of Target setting forth all transfers of any capital stock. The corporate minute books, stock certificate books, stock registers and other corporate records of
                                                                                      \nTarget are complete and accurate, and the signatures appearing on all documents contained therein are the true or facsimile signatures of the persons purporting to have signed the same. <\/font><\/p>\n
                                                                                          Section 3.25  No
                                                                                      \nBrokers<\/u>. Neither Target nor, to Target’s knowledge, any Target stockholder is obligated for the payment of fees or
                                                                                      \nexpenses of any broker or finder in connection with the origin, negotiation or execution of this Agreement or the other Transaction Documents or in connection with any transaction contemplated hereby
                                                                                      \nor thereby. <\/font><\/p>\n
                                                                                          Section 3.26  Pooling
                                                                                      \nof Interests<\/u>. To Target’s knowledge after consultation with its independent auditors, neither Target nor any
                                                                                      \nof its Affiliates has taken or agreed to take any action which would prevent <\/font><\/p>\n
                                                                                      20<\/font><\/p>\n
                                                                                      \n

                                                                                      \nAcquiror from accounting for the business combination to be effected by the Merger as a pooling of interests. <\/font><\/p>\n
                                                                                          Section 3.27  Advertisers,
                                                                                      \nCustomers and Suppliers<\/u>. As of the date hereof, no advertiser or other customer which individually
                                                                                      \naccounted for more than 2% of Target’s gross revenues during the 12-month period preceding the date hereof, and no material supplier of Target, has canceled or otherwise terminated prior
                                                                                      \nto the expiration of the contract term, or, to the Target’s knowledge, made any written threat to Target to cancel or otherwise terminate its relationship with Target, or has at any time on or after
                                                                                      \nDecember 31, 1999 decreased materially its services or supplies to Target in the case of any such supplier, or its usage of the services or products of Target in the case of such customer, and
                                                                                      \nto Target’s knowledge, no such supplier or customer intends to cancel or otherwise terminate its contractual relationship with Target or to decrease materially its services or supplies to Target or
                                                                                      \nits usage of the services or products of Target, as the case may be. Target has not knowingly (i) breached, so as to provide a benefit to Target that was not intended by the parties, any
                                                                                      \nagreement with, or (ii) engaged in any fraudulent conduct with respect to, any customer or supplier or Target. <\/font><\/p>\n
                                                                                          Section 3.28  Target
                                                                                      \nAction<\/u>. The Board of Directors of Target, by unanimous written consent or at a meeting duly called and held,
                                                                                      \nhas by the unanimous vote of all directors (i) determined that the Merger is fair and advisable to and in the best interests of Target and its stockholders, (ii) approved the Merger and
                                                                                      \nthis Agreement in accordance with the provisions of Delaware Law, and (iii) directed that this Agreement and the Merger be submitted to Target stockholders for their approval and resolved to
                                                                                      \nrecommend that Target stockholders vote in favor of the approval of this Agreement and the Merger. <\/font><\/p>\n
                                                                                          Section 3.29  Offers<\/u>.
                                                                                      \nTarget has suspended or terminated, and has the legal right to terminate or suspend, all negotiations and
                                                                                      \ndiscussions of Acquisition Transactions (as defined in Section 5.6) with parties other than Acquiror. <\/font><\/p>\n
                                                                                          Section 3.30  Privacy
                                                                                      \nLaws and Policies Compliance<\/u>. Target has complied with all applicable federal, state and local laws, and
                                                                                      \nregulations relating to the collection and use of user information gathered in the course of Target’s operations, and Target has at all times complied in all material respects with all rules, policies
                                                                                      \nand procedures established by Target from time to time with respect to the foregoing. <\/font><\/p>\n
                                                                                          Section 3.31  Disclosure<\/u>.
                                                                                      \nNo statements by Target contained in this Agreement, its exhibits and schedules nor in any of the
                                                                                      \ncertificates required to be delivered by Target to Acquiror or Sub under this Agreement or in Target’s registration statement on Form S-1 filed with the SEC on March 23, 2000
                                                                                      \n(“<\/font>Target’s Form S-1<\/b><\/font>“) contains any untrue statement of a material fact or omits to state a material fact necessary in order to make
                                                                                      \nthe statements contained herein or therein not misleading in light of the circumstances under which they were made. Target has disclosed to Acquiror all material information relating specifically to
                                                                                      \nthe operations and business of Target as of the date of this Agreement or the transactions contemplated by this Agreement. <\/font><\/p>\n
                                                                                          Section 3.32  Hearing
                                                                                      \nNotice and Information Statement; Registration Statement; Proxy Statement\/ Prospectus<\/u>. The information
                                                                                      \nrelating to Target included in (i) the notice sent to the stockholders of Target pursuant to, and meeting the requirements of Article 2 of Subchapter 1 of the California Administrative
                                                                                      \nCode, Title 10, Chapter 3, Subchapter 2, as amended (the “<\/font>Hearing Notice<\/b><\/font>“), concerning the hearing held by the California Commissioner of Corporations
                                                                                      \n(the “<\/font>Commissioner<\/b><\/font>“) to consider the terms, conditions and fairness of the transactions contemplated hereby pursuant to Section 25142 of the
                                                                                      \nCalifornia Corporate Securities Law of 1968, as amended (the “<\/font>Hearing<\/b><\/font>“), (ii) the application for permit filed with the Commissioner in
                                                                                      \nconnection with the Hearing (the “<\/font>Permit Application<\/b><\/font>“) and (iii) the information statement mailed to stockholders of Target in connection with
                                                                                      \nthe transactions contemplated hereby (the “<\/font>Information Statement<\/b><\/font>“) shall not, at the time the Hearing Notice is mailed to stockholders of Target, at the
                                                                                      \ntime the Information Statement is mailed to stockholders of Target and at all times subsequent thereto (through and including the Effective Date), contain any untrue statement of a material fact or
                                                                                      \nomit to state any material fact required to be stated therein or necessary in order to make the statements therein, in light of the circumstances under which they were made, not misleading. The
                                                                                      \ninformation relating to Target included in the registration statement on Form S-4 (or such other or successor form as shall be <\/font><\/p>\n
                                                                                      21<\/font><\/p>\n
                                                                                      \n

                                                                                      \nappropriate) pursuant to which the shares of Acquiror Common Stock to be issued in the Merger will be registered with the SEC if the Permit is not issued (the “<\/font>Registration
                                                                                      \nStatement<\/b><\/font>“) shall not, at the time the Registration Statement (including any amendments or supplements thereto) is declared effective by the SEC, contain any untrue statement
                                                                                      \nof a material fact or omit to state any material fact required to be stated therein or necessary in order to make the statements therein, in light of the circumstances under which they were made, not
                                                                                      \nmisleading. The information relating to Target included in the proxy statement\/prospectus to be sent to the stockholders of Target in connection with the meeting of Target’s stockholders to consider
                                                                                      \nthe Merger (the “<\/font>Target Stockholders Meeting<\/b><\/font>“) (such proxy statement\/prospectus as amended or supplemented is referred to herein as the
                                                                                      \n“<\/font>Proxy Statement<\/b><\/font>“) shall not, on the date the Proxy Statement is first mailed to Target stockholders, at the time of the Target Stockholders Meeting and
                                                                                      \nat the Effective Time, contain any statement which, at such time, is false or misleading with respect to any material fact or omit to state any material fact necessary in order to make the statements
                                                                                      \nmade therein, in light of the circumstances under which they are made, not false or misleading; or omit to state any material fact necessary to correct any statement in any earlier communication with
                                                                                      \nrespect to the solicitation of proxies for the Target Stockholders Meeting which has become false or misleading. If, at any time prior to the Effective Time, any event or information should be
                                                                                      \ndiscovered by Target which should be set forth in an amendment to the
                                                                                      \n(x) Hearing Notice, the Permit Application or the Information Statement or (y) the Registration Statement or the Proxy Statement, Target shall promptly inform Acquiror. Notwithstanding
                                                                                      \nthe foregoing, Target makes no representation, warranty or covenant with respect to any information relating to Acquiror which is contained in any of the foregoing documents. <\/font><\/p>\n
                                                                                      ARTICLE
                                                                                      \nIV <\/font><\/p>\n
                                                                                      REPRESENTATIONS
                                                                                      \nAND WARRANTIES OF ACQUIROR AND SUB <\/font><\/p>\n
                                                                                          Acquiror
                                                                                      \nand Sub jointly and severally represent and warrant to Target that, except as disclosed in a filing with the Securities and Exchange Commission (the <\/font> “SEC”<\/b><\/font>), the statements contained in this Article
                                                                                      \n IV are true and correct. <\/font><\/p>\n
                                                                                          Section 4.1  Organization
                                                                                      \nof Acquiror and Sub<\/u>. Each of Acquiror and its Subsidiaries, including Sub, is a corporation duly
                                                                                      \norganized, validly existing and in good standing under the laws of its respective jurisdiction of incorporation and has all requisite corporate power to own, lease and operate its property and to
                                                                                      \ncarry on its business as now being conducted and is duly qualified or licensed to do business and is in good standing in each jurisdiction in which the failure to be so qualified or licensed would
                                                                                      \nhave a Material Adverse Effect on Acquiror or Sub. The authorized capital stock of Sub consists of 1,000 shares of Common Stock, all of which are issued and outstanding, duly paid and nonassessable
                                                                                      \nand are owned by Acquiror free and clear of all liens, charges and encumbrances. <\/font><\/p>\n
                                                                                          Section 4.2  Valid
                                                                                      \nIssuance of Acquiror Common Stock<\/u>. The shares of Acquiror’s Common Stock, par value of $0.001 per share
                                                                                      \n(“<\/font>Acquiror Common Stock<\/b><\/font>“), to be issued pursuant to the Merger will be duly authorized, validly issued, fully paid, and non-assessable and
                                                                                      \nissued in compliance with all applicable federal or state securities laws. <\/font><\/p>\n
                                                                                          Section 4.3  Authority;
                                                                                      \nNo Conflict; Required Filings and Consents<\/u>. <\/font><\/p>\n
                                                                                        \n
                                                                                            (a) Each
                                                                                        \nof Acquiror and Sub has all requisite corporate power and authority to enter into this Agreement and the other Transaction Documents to which it is or will
                                                                                        \nbecome a party and to consummate the transactions contemplated by this Agreement and such Transaction Documents. The execution and delivery of this Agreement and such Transaction Documents and the
                                                                                        \nconsummation of the transactions
                                                                                        \ncontemplated by this Agreement and such Transaction Documents have been duly authorized by all necessary corporate action on the part of Acquiror and Sub. This Agreement has been and such Transaction
                                                                                        \nDocuments have been or, to the extent not executed as of the date hereof, will be duly executed and delivered by Acquiror and Sub. This Agreement and each of the Transaction Documents to which
                                                                                        \nAcquiror or Sub is a party constitutes, and each of the Transaction Documents to which Acquiror or Sub will become a party when executed and delivered by Acquiror or Sub will <\/font><\/p>\n<\/ul>\n
                                                                                        22<\/font><\/p>\n
                                                                                        \n
                                                                                          \n

                                                                                          \nconstitute, a valid and binding obligation of Acquiror or Sub, enforceable against Acquiror or Sub, as the case may be, in accordance with its terms, except to the extent that enforceability may be
                                                                                          \nlimited by applicable bankruptcy, reorganization, insolvency, moratorium or other laws affecting the enforcement of creditors’ rights generally and by general principles of equity, regardless of
                                                                                          \nwhether such enforceability is considered. <\/font><\/p>\n
                                                                                              (b) The
                                                                                          \nexecution and delivery by Acquiror or Sub of this Agreement and the Transaction Documents to which it is or will become a party does not, and consummation of
                                                                                          \nthe transactions contemplated by this Agreement or the Transaction Documents to which it is or will become a party will not, (i) conflict with, or result in any violation or breach of any
                                                                                          \nprovision of the Certificate of Incorporation or Bylaws of Acquiror or Sub, (ii) result in any violation or breach of, or constitute (with or without notice or lapse of time, or both) a default
                                                                                          \n(or give rise to a right of termination, cancellation or acceleration of any obligation or loss of any material benefit) under any of the terms, conditions or provisions of any note, bond, mortgage,
                                                                                          \nindenture, lease, contract or other agreement, instrument or obligation to which Acquiror or Sub is a party or by which either of them or any of their properties or assets may be bound, or
                                                                                          \n(iii) conflict or violate any permit, concession, franchise, license, judgment, order, decree, statute, law, ordinance, rule or regulation applicable to Acquiror or Sub or any of their
                                                                                          \nproperties or assets, except in the case of (ii) and (iii) for any such conflicts, violations, defaults, terminations, cancellations or accelerations which would not have a Material
                                                                                          \nAdverse Effect on Acquiror and its Subsidiaries, taken as a whole. <\/font><\/p>\n
                                                                                              (c) Neither
                                                                                          \nthe execution and delivery of this Agreement by Acquiror or Sub or the Transaction Documents to which Acquiror or Sub is or will become a party or the
                                                                                          \nconsummation of the transactions contemplated hereby or thereby will require any consent, approval, order or authorization of, or registration, declaration or filing with, any Governmental Entity,
                                                                                          \nexcept for (i) the filing of the Certificate of Merger with the Delaware Secretary of State, (ii) such consents, approvals, orders, authorizations, registrations, declarations and
                                                                                          \nfilings as may be required under applicable federal and state securities laws and the laws of any foreign country, (iii) such filings as may be required under applicable Antitrust Laws, and
                                                                                          \n(iv) such other consents, authorizations, filings, approvals and registrations which, if not obtained or made, could be expected to have a Material Adverse Effect on Acquiror and its
                                                                                          \nSubsidiaries, taken as a whole. <\/font><\/p>\n<\/ul>\n
                                                                                              Section 4.4  SEC
                                                                                          \nFilings; Financial Statements<\/u>. <\/font><\/p>\n
                                                                                            \n
                                                                                                (a) Acquiror
                                                                                            \nhas filed with the SEC and made available to Target or its representatives all forms, reports and documents required to be filed by Acquiror with the SEC
                                                                                            \nsince June 30, 1999 (collectively, the “<\/font>Acquiror SEC Reports<\/b><\/font>“). The Acquiror <\/font>SEC<\/b><\/font> Reports
                                                                                            \n(i) at the time filed, complied in all material respects with the applicable requirements of the Securities Act of 1933, as amended, (the “<\/font>Securities
                                                                                            \nAct<\/b><\/font>“), and the Exchange Act, as the case may be, and (ii) did not at the time they were filed (or if amended or superseded by a filing prior to the date of this
                                                                                            \nAgreement, then on the date of such filing) contain any untrue statement of a material fact or omit to state a material fact required to be stated in such Acquiror <\/font> SEC<\/b><\/font> Reports or necessary in order to
                                                                                            \nmake the statements in such Acquiror <\/font>SEC<\/b><\/font> Reports, in the light of
                                                                                            \nthe circumstances under which they were made, not misleading. <\/font><\/p>\n
                                                                                                (b) Each
                                                                                            \nof the financial statements (including, in each case, any related notes) contained in the Acquiror <\/font>SEC<\/b><\/font> Reports,
                                                                                            \nincluding any Acquiror <\/font>SEC<\/b><\/font> Reports filed after the date of this Agreement until the Closing, complied or will comply as to form in all material respects
                                                                                            \nwith the applicable published rules and regulations of the <\/font>SEC<\/b><\/font> with respect thereto, was prepared in accordance with generally accepted accounting
                                                                                            \nprinciples applied on a consistent basis throughout the periods involved (except as may be indicated in the notes to such financial statements or, in the case of unaudited statements, as permitted by
                                                                                            \nForm 10-Q of the <\/font>SEC<\/b><\/font>) and fairly presented the consolidated financial position of Acquiror and its Subsidiaries as at the respective
                                                                                            \ndates and the consolidated results of its operations and cash flows for the periods indicated, except that the unaudited interim financial statements were or are subject to normal and recurring
                                                                                            \nyear-end adjustments which were not or are not expected to be material in amount. <\/font><\/p>\n<\/ul>\n
                                                                                            23<\/font><\/p>\n
                                                                                            \n
                                                                                              \n<\/ul>\n
                                                                                                  Section 4.5  Pooling
                                                                                              \nof Interests<\/u>. To Acquiror’s knowledge after consultation with its independent accountants, neither Acquiror nor
                                                                                              \nany of its affiliates has taken or agreed to take any action which would prevent Acquiror from accounting for the business combination to be effected by the Merger as a pooling of interests. <\/font><\/p>\n
                                                                                                  Section 4.6  Interim
                                                                                              \nOperations of Sub<\/u>. Sub was formed by Acquiror solely for the purpose of engaging in the transactions
                                                                                              \ncontemplated by this Agreement, has engaged in no other business activities and has conducted its operations only as contemplated by this Agreement. Sub has no liabilities and, except for a
                                                                                              \nsubscription agreement pursuant to which all of its authorized capital stock was issued to Acquiror, is not a party to any agreement other than this Agreement and agreements with respect to the
                                                                                              \nappointment of registered agents and similar matters. <\/font><\/p>\n
                                                                                                  Section 4.7  Stockholders
                                                                                              \nConsent<\/u>. No consent or approval of the stockholders of Acquiror is required or necessary for Acquiror to
                                                                                              \nenter into this Agreement or the Transaction Documents or to consummate the transactions contemplated hereby and thereby. <\/font><\/p>\n
                                                                                                  Section 4.8  Hearing
                                                                                              \nNotice and Information Statement; Registration Statement; Proxy Statement\/ Prospectus<\/u>. The information relating
                                                                                              \nto Acquiror included in (i) the Hearing Notice concerning the Hearing, (ii) the Permit Application and (iii) the Information Statement shall not, at the time the Hearing Notice is
                                                                                              \nmailed to stockholders of Target, at the time the Information Statement is mailed to stockholders of Target and at all times subsequent thereto (through and including the Effective Date), contain any
                                                                                              \nuntrue statement of a material fact or omit to state any material fact required to be stated therein or necessary in order to make the statements therein, in light of the circumstances under which
                                                                                              \nthey were made, not misleading. The information relating Acquiror included in the Registration Statement shall not, at the time the Registration Statement (including any amendments or supplements
                                                                                              \nthereto) is declared effective by the SEC, contain any untrue statement of a material fact or omit to state any material fact necessary in order to make the statements therein, in light of the
                                                                                              \ncircumstances under which they were made, not misleading, The information relating Acquiror included in the Proxy Statement shall not, on the date the Proxy Statement is first mailed to Target’s
                                                                                              \nstockholders, at the time of the Target Stockholders Meeting and at the Effective Time, contain any statement which, at such time, is false or misleading with respect to any material fact, or omit to
                                                                                              \nstate any material fact necessary in order to make the statements therein, in light of the circumstances under which it is made, not false or misleading or omit to state any material fact necessary to
                                                                                              \ncorrect any statement in any earlier communication with respect to the solicitation of proxies for the Target Stockholders Meeting which has become false or misleading. If at any time prior to the
                                                                                              \nEffective Time any event or information should be discovered by Acquiror which should be set forth in any amendment to the Registration Statement or a supplement to the Proxy Statement, Acquiror will
                                                                                              \npromptly inform Target. Notwithstanding the foregoing, Acquiror makes no representation, warranty or covenant with respect to any information relating to Target which is contained in any of the
                                                                                              \nforgoing documents. <\/font><\/p>\n
                                                                                              ARTICLE
                                                                                              \nV <\/font><\/p>\n
                                                                                              PRECLOSING
                                                                                              \nCOVENANTS OF TARGET <\/font><\/p>\n
                                                                                                  Section 5.1  Fairness
                                                                                              \nHearing and Permit<\/u>. As promptly as practicable after the execution of this Agreement, Target and Acquiror
                                                                                              \nshall prepare, and Acquiror shall file with the Commissioner, the Permit Application and a request for the Hearing to be held by the Commissioner to consider the terms, conditions and fairness of the
                                                                                              \ntransactions contemplated by this Agreement and the Merger Agreement pursuant to Section 25142 of the California Corporate Securities Laws of 1968, as amended. As soon as permitted by the
                                                                                              \nCommissioner, Target shall mail the Hearing Notice to all stockholders of Target entitled to receive such notice under Delaware Law. Target and Acquiror will notify each other promptly of the receipt
                                                                                              \nof any comments from the Commissioner or its staff and of any request by the
                                                                                              \nCommissioner or its staff or any other government officials for amendments or supplements to any of the documents filed therewith or any other filing or for additional information and will supply each
                                                                                              \nother with copies of all correspondence between such party or any of its representatives, on the one hand, and the Commissioner, <\/font><\/p>\n
                                                                                              24<\/font><\/p>\n
                                                                                              \n

                                                                                              \nor its staff or any other government officials, on the other hand, with respect to the filing. Whenever any event occurs that is required to be set forth in an amendment or supplement to the
                                                                                              \nInformation Statement or any other filing, each party shall promptly inform the other of such occurrence and cooperate in filing with the Commissioner or its staff or any other government officials,
                                                                                              \nand\/or mailing to stockholders of Target, such amendment or supplement. The Information Statement shall include the recommendation of the Board of Directors of Target in favor of the Merger Agreement
                                                                                              \nand the Merger and the conclusion of the Board of Directors of Target that the terms and conditions of the Merger are fair and reasonable to the stockholders of Target. Anything to the contrary
                                                                                              \ncontained herein notwithstanding, Target shall not include in the Information Statement any information with respect to Acquiror or its affiliates or associates, the form and content of which
                                                                                              \ninformation shall not have been approved by Acquiror prior to such inclusion. If the Commissioner informs Acquiror or Target of its determination not to (A) grant the Hearing, (B) permit
                                                                                              \nthe mailing of the Notice of Hearing or (C) issue the Permit, Target and Acquiror shall prepare, and Acquiror shall file with the SEC the Registration Statement, which shall comply in form with
                                                                                              \napplicable SEC requirements and shall use all reasonable efforts to cause the Registration Statement to become effective as soon thereafter as practicable. Acquiror will notify Target promptly of the
                                                                                              \nreceipt of any comments from the SEC or its staff and of any request by the SEC or its staff or any other government officials for amendments or supplements to the Registration Statement or any other
                                                                                              \nfiling or for additional information and will supply Target with copies of all correspondence between Acquiror or any of its representatives, on the one hand, and the SEC, or its staff or any other
                                                                                              \ngovernment officials, on the other hand, with respect to the Registration Statement or other filing. Whenever any event occurs that is required to be set forth in an amendment or supplement to the
                                                                                              \nRegistration Statement or any other filing, each party shall promptly inform the other party of such occurrence and cooperate in filing with the SEC or its staff or any other government officials,
                                                                                              \nand\/or mailing to stockholders of Target, such amendment or supplement. The Proxy Statement shall include the recommendation of the Board of Directors of Target in favor of the Merger Agreement and
                                                                                              \nthe Merger and the conclusion of the Board of Directors of Target that the terms and conditions of the Merger are fair and reasonable to stockholders of Target. As soon as practicable following the
                                                                                              \nexecution of this Agreement, Target shall take all necessary action to cause Target’s Form S-1 to be withdrawn from registration with the SEC. <\/font><\/p>\n
                                                                                                  Section 5.2  Approval
                                                                                              \nof Target Stockholders<\/u>. Target shall promptly after the date hereof take all action necessary in accordance
                                                                                              \nwith Delaware Law and its Certificate of Incorporation and Bylaws to convene the Target Stockholders Meeting or to secure the written consent of its stockholders, in each case, within 30 days
                                                                                              \nof the issuance of the Permit or the effectiveness of the Registration Statement, as applicable. Target shall consult with Acquiror regarding the date of the Target Stockholders Meeting and use all
                                                                                              \nreasonable efforts and shall not postpone or adjourn (other than for the absence of a quorum) the Target Stockholders Meeting without the consent of Acquiror. Target shall use its best efforts to
                                                                                              \nsolicit from stockholders of Target proxies in favor of the Merger and shall take all other
                                                                                              \naction necessary or advisable to secure the vote or consent of stockholders required to effect the Merger. <\/font><\/p>\n
                                                                                                  Section 5.3  Advice
                                                                                              \nof Changes<\/u>. Target will promptly advise Acquiror in writing of any event known to Target occurring subsequent to
                                                                                              \nthe date of this Agreement which would, or would be reasonably likely to, render any representation or warranty of Target contained in this Agreement, if made on or as of the date of such event or the
                                                                                              \nClosing Date, untrue or inaccurate in any material respect. <\/font><\/p>\n
                                                                                                  Section 5.4  Operation
                                                                                              \nof Business<\/u>. During the period from the date of this Agreement and continuing until the earlier of the
                                                                                              \ntermination of the Agreement or the Effective Time, Target agrees (except to the extent that Acquiror shall otherwise consent in writing), to carry on its business in the usual, regular and ordinary
                                                                                              \ncourse in substantially the same manner as previously conducted, to pay its debts and taxes when due, subject to good faith disputes over such debts or taxes, to pay or perform other obligations when
                                                                                              \ndue, and, to the extent consistent with such business, use all reasonable efforts consistent with past practices and policies to preserve intact its present business organization, keep available the
                                                                                              \nservices of its present officers and employees and preserve its relationships with customers, suppliers, distributors, licensors, licensees, and others having business dealings with it, to the end
                                                                                              \nthat its goodwill and ongoing businesses would be unimpaired at the Effective Time. Target shall promptly notify Acquiror of any event <\/font><\/p>\n
                                                                                              25<\/font><\/p>\n
                                                                                              \n

                                                                                              \nor occurrence not in the ordinary course of business of Target. Except as expressly contemplated by this Agreement, Target shall not, without the prior written consent of Acquiror: <\/font><\/p>\n
                                                                                                \n
                                                                                                    (a) accelerate,
                                                                                                \namend or change the period of exercisability or the vesting schedule of restricted stock granted under any employee stock plan or agreements or
                                                                                                \nauthorize cash payments in exchange for any options granted under any of such plans except as specifically required by the terms of such plans or any related agreements or any such agreements in
                                                                                                \neffect as of the date of this Agreement and disclosed in the Target Disclosure Schedule; <\/font><\/p>\n
                                                                                                    (b) declare
                                                                                                \nor pay any dividends on or make any other distributions (whether in cash, stock or property) in respect of any of its capital stock, or split, combine or
                                                                                                \nreclassify any of its capital stock or issue or authorize the issuance of any other securities in respect of, in lieu of or in substitution for shares of capital stock of such party, or purchase or
                                                                                                \notherwise acquire, directly or indirectly, any shares of its capital stock except from former employees, directors and consultants in accordance with agreements providing for the repurchase of shares
                                                                                                \nin connection with any termination of service by such party; <\/font><\/p>\n
                                                                                                    (c) issue,
                                                                                                \ndeliver or sell or authorize or propose the issuance, delivery or sale of, or purchase or propose the purchase of, any shares of its capital stock or
                                                                                                \nsecurities convertible into shares of its capital stock, or subscriptions, rights, warrants or options to acquire, or other agreements or commitments of any character obligating it to issue any such
                                                                                                \nshares or other convertible securities, other than (i) the issuance of (A) shares of Target Common Stock issuable upon exercise of Target Options or Target Warrants, which are
                                                                                                \noutstanding on the date of this Agreement or (B) shares of Target Common Stock issuable upon conversion of shares of Target Preferred Stock or (ii) the repurchase of shares of Target
                                                                                                \nCommon Stock from terminated employees pursuant to the terms of outstanding stock restriction or similar agreements; <\/font><\/p>\n
                                                                                                    (d) acquire
                                                                                                \nor agree to acquire by merging or consolidating with, or by purchasing a substantial equity interest in or substantial portion of the assets of, or by any
                                                                                                \nother manner, any business or any corporation, partnership or other business organization or division, or otherwise acquire or agree to acquire any assets; <\/font><\/p>\n
                                                                                                    (e) sell,
                                                                                                \nlease, license or otherwise dispose of any of its properties or assets which are material, individually or in the aggregate, to the business of Target, except
                                                                                                \nin the ordinary course of business; <\/font><\/p>\n
                                                                                                    (f)  (i) increase
                                                                                                \nor agree to increase the compensation payable or to become payable to its officers or employees, (ii) except as set forth on the Target
                                                                                                \nDisclosure Schedule, grant any additional severance or termination pay to, or enter into any employment or severance agreements with, officers, (iii) grant any severance or termination pay to,
                                                                                                \nor enter into any employment or severance agreement, with any non-officer employee, (iv) enter into any collective bargaining agreement, or (v) establish, adopt, enter into
                                                                                                \nor amend in any material respect any bonus, profit sharing, thrift, compensation, stock option, restricted stock, pension, retirement, deferred compensation, employment, termination, severance or
                                                                                                \nother plan, trust, fund, policy or arrangement for the benefit of any directors, officers or employees; <\/font><\/p>\n
                                                                                                    (g) revalue
                                                                                                \nany of its assets, including writing down the value of inventory or writing off notes or accounts receivable; <\/font><\/p>\n
                                                                                                    (h) incur
                                                                                                \nany indebtedness for borrowed money or guarantee any such indebtedness or issue or sell any debt securities or warrants or rights to acquire any debt
                                                                                                \nsecurities or guarantee any debt securities of others, in excess of $25,000, other than trade payables incurred in the ordinary course of business; <\/font><\/p>\n
                                                                                                    (i)  amend
                                                                                                \nor propose to amend its Certificate of Incorporation or Bylaws; <\/font><\/p>\n
                                                                                                    (j)  incur
                                                                                                \nor commit to incur any capital expenditures in excess of $100,000 in the aggregate or in excess of $25,000 as to any individual matter; <\/font><\/p>\n<\/ul>\n
                                                                                                26<\/font><\/p>\n
                                                                                                \n
                                                                                                  \n<\/ul>\n
                                                                                                    \n
                                                                                                        (k) lease,
                                                                                                    \nlicense, sell, transfer or encumber or permit to be encumbered any asset, Target Proprietary Right or other property associated with the business of Target
                                                                                                    \n(including sales or transfers to Affiliates of Target); <\/font><\/p>\n
                                                                                                        (1) enter
                                                                                                    \ninto any lease or contract for the purchase or sale of any property, real or personal except in the ordinary course of business; <\/font><\/p>\n
                                                                                                        (m) fail
                                                                                                    \nto maintain its equipment and other assets in good working condition and repair according to the standards it has maintained up to the date of this Agreement,
                                                                                                    \nsubject only to ordinary wear and tear; <\/font><\/p>\n
                                                                                                        (n) change
                                                                                                    \naccounting methods; <\/font><\/p>\n
                                                                                                        (o) amend
                                                                                                    \nor terminate any material contract, agreement or license to which it is a party except in the ordinary course of business; <\/font><\/p>\n
                                                                                                        (p) loan
                                                                                                    \nany amount to any person or entity, or guaranty or act as a surety for any obligation; <\/font><\/p>\n
                                                                                                        (q) waive
                                                                                                    \nor release any material right or claim, except in the ordinary course of business; <\/font><\/p>\n
                                                                                                        (r) make
                                                                                                    \nor change any Tax or accounting election, change any annual accounting period, adopt or change any accounting method, file any amended Return, enter into any
                                                                                                    \nclosing agreement, settle any Tax claim or assessment relating to Target, surrender any right to claim refund of Taxes, consent to any extension or waiver of the limitation period applicable to any
                                                                                                    \nTax claim or assessment relating to Target, or take any other action or omit to take any action that would have the effect of increasing the Tax liability of Target or Acquiror; <\/font><\/p>\n
                                                                                                        (s) take
                                                                                                    \nany action or fail to take any action that would have a Material Adverse Effect on Target; <\/font><\/p>\n
                                                                                                        (t)  enter
                                                                                                    \ninto any agreement outside of the ordinary course of business in which the obligation of Target exceeds $5,000 or shall not terminate or be subject to
                                                                                                    \ntermination for convenience within 60 days following execution; <\/font><\/p>\n
                                                                                                        (u) enter
                                                                                                    \ninto any agreement (including without limitation any material licenses to information or databases, any OEM agreements, any exclusive agreements of any kind,
                                                                                                    \nor any agreements providing for obligations that would extend beyond 60 days of the date of this Agreement) not in the ordinary course of business; <\/font><\/p>\n
                                                                                                        (v) extend
                                                                                                    \nany offers of employment to potential employees, consultants or independent contractors or involuntarily terminate the employment of any existing employees,
                                                                                                    \nconsultants or independent contractors (other than for cause); or <\/font><\/p>\n
                                                                                                        (w) take,
                                                                                                    \nor agree in writing or otherwise to take, any of the actions described in Sections (a) through (v) above, or any action which is reasonably
                                                                                                    \nlikely to make any of Target’s representations or warranties contained in this Agreement untrue or incorrect in any material respect on the date made (to the extent so limited) or as of the Effective
                                                                                                    \nTime. <\/font><\/p>\n<\/ul>\n
                                                                                                    All
                                                                                                    \ncommunications from Target to Acquiror requesting waivers with respect to the provisions of this Section 5.4 shall be directed to Richard Riley at Acquiror’s address set forth at
                                                                                                    \nSection 11.2(a) of this Agreement. All such requests for waivers shall be promptly considered in good faith by Acquiror whose consent with respect thereto shall not be unreasonably withheld. <\/font><\/p>\n
                                                                                                        Section 5.5  Access
                                                                                                    \nto Information<\/u>. Until the Closing, Target shall allow Acquiror and its agents and representatives reasonable
                                                                                                    \nfree access during normal business hours upon reasonable notice to its files, books, records, representatives, employees, agents and offices, including, without limitation, any and all information
                                                                                                    \nrelating to taxes, commitments, contracts, leases, licenses, and personal property and financial condition. Until the Closing, Target shall cause its accountants to cooperate with Acquiror and its
                                                                                                    \nagents in making available all financial information requested, including without limitation the right to examine all working papers pertaining to all financial statements prepared or audited by such
                                                                                                    \naccountants. No <\/font><\/p>\n
                                                                                                    27<\/font><\/p>\n
                                                                                                    \n

                                                                                                    \ninformation or knowledge obtained in any investigation pursuant to this Section shall affect or be deemed to modify any representation or warranty contained in this Agreement or its exhibits and
                                                                                                    \nschedules. All such access shall be subject to the terms of the Confidentiality Agreement (as defined in Section 7.1). <\/font><\/p>\n
                                                                                                        Section 5.6  Satisfaction
                                                                                                    \nof Conditions Precedent<\/u>. Target will use its reasonable best efforts to satisfy or cause to be satisfied
                                                                                                    \nall the conditions precedent which are set forth in Sections 8.1 and 8.2, and Target will use its reasonable best efforts to cause the transactions contemplated by this Agreement to be consummated,
                                                                                                    \nand, without limiting the generality of the foregoing, to obtain all consents and authorizations of third parties and to make all filings with, and give all notices to, third parties which may be
                                                                                                    \nnecessary or reasonably required on its part in order to effect the transactions contemplated by this Agreement. Target shall use its best efforts to obtain any and all consents necessary with respect
                                                                                                    \nto those Material Contracts listed on Schedule 5.6 of the Target Disclosure Schedule required to consummate the Merger (the “<\/font>Material Consents<\/b><\/font>“). <\/font><\/p>\n
                                                                                                        Section 5.7  Other
                                                                                                    \nNegotiations<\/u>. Following the date hereof and until termination of this Agreement pursuant to Section 9.1,
                                                                                                    \nTarget will not (and it will not permit any of its officers, directors, employees, representatives (including, without limitation, accountants, attorneys, investment bankers or investors) agents and
                                                                                                    \nAffiliates on its behalf directly or indirectly through another person to) take any action to solicit, initiate, seek, encourage or support or take any other action designed to facilitate any inquiry,
                                                                                                    \nproposal or offer from, furnish any information to, or participate in any negotiations with, any corporation, partnership, person or other entity or group (other than Acquiror) regarding any
                                                                                                    \nacquisition of Target, any merger or consolidation with or involving Target, or any acquisition of any material portion of the stock or assets of Target or any material license of Target Proprietary
                                                                                                    \nRights (any of the foregoing being referred to in this Agreement as an “<\/font>Acquisition Transaction<\/b><\/font>“) or enter into an agreement concerning any Acquisition
                                                                                                    \nTransaction with any party other than Acquiror. If between the date of this Agreement and the termination of this Agreement pursuant to Section 9.1, Target receives from a third party any offer
                                                                                                    \nor indication of interest regarding any Acquisition Transaction, or any request for information regarding any Acquisition Transaction, Target shall (i) notify Acquiror immediately (orally and
                                                                                                    \nin writing) of such offer, indication of interest or request, including the identity of such party and the full terms of any proposal therein, and (ii) notify such third party of Target’s
                                                                                                    \nobligations under this Agreement; provided<\/u>, however<\/u>, that the foregoing shall not be construed so as to require Target to breach any
                                                                                                    \nnon-disclosure agreements entered into prior to June 1, 2000. <\/font><\/p>\n
                                                                                                        Section 5.8  Termination
                                                                                                    \nof Lease or Qualified Sublease<\/u>. As soon as practicable following the execution of this Agreement, Target
                                                                                                    \nshall use its best efforts to (i) cause the 555 Market Street Lease Agreement to be terminated in all respects at a cost to Target in an amount less than $8,644,000 or (ii) enter into a
                                                                                                    \nQualified Sublease. <\/font><\/p>\n
                                                                                                    ARTICLE
                                                                                                    \nVI <\/font><\/p>\n
                                                                                                    PRECLOSING
                                                                                                    \nAND OTHER COVENANTS OF ACQUIROR AND SUB <\/font><\/p>\n
                                                                                                        Section 6.1  Advice
                                                                                                    \nof Changes<\/u>. Acquiror and Sub will promptly advise Target in writing of any event occurring subsequent to the
                                                                                                    \ndate of this Agreement which would render any representation or warranty of Acquiror or Sub contained in this Agreement, if made on or as of the date of such event or the Closing Date, untrue or
                                                                                                    \ninaccurate in any material respect. <\/font><\/p>\n
                                                                                                        Section 6.2  Reservation
                                                                                                    \nof Acquiror Common Stock<\/u>. Acquiror shall prior to the Effective Time reserve for issuance, out of its
                                                                                                    \nauthorized but unissued capital stock, the maximum number of shares of Acquiror Common Stock as may be issuable upon consummation of the Merger. <\/font><\/p>\n
                                                                                                        Section 6.3  Satisfaction
                                                                                                    \nof Conditions Precedent<\/u>. Acquiror and Sub will use their reasonable best efforts to satisfy or cause to be
                                                                                                    \nsatisfied all the conditions precedent which are set forth in Sections 8.1 and 8.3, and Acquiror and Sub will use their reasonable best efforts to cause the transactions contemplated by this Agreement
                                                                                                    \nto be consummated, and, without limiting the generality of the foregoing, to obtain all <\/font><\/p>\n
                                                                                                    28<\/font><\/p>\n
                                                                                                    \n

                                                                                                    \nconsents and authorizations of third parties and to make all filings with, and give all notices to, third parties which may be necessary or reasonably required on its part in order to effect the
                                                                                                    \ntransactions contemplated hereby. <\/font><\/p>\n
                                                                                                        Section 6.4  Stock
                                                                                                    \nOptions<\/u>. <\/font><\/p>\n
                                                                                                      \n
                                                                                                          (a) At
                                                                                                      \nthe Effective Time, each outstanding Target Option under the Target Option Plan, whether vested or unvested, shall be assumed by Acquiror and deemed to
                                                                                                      \nconstitute an option (an “<\/font>Acquiror Option<\/b><\/font>“) to acquire, on the same terms and conditions as were applicable under the Target Option, the same number of
                                                                                                      \nshares of Acquiror Common Stock as the holder of such Target Option would have been entitled to receive pursuant to the Merger had such holder exercised such option in full immediately prior to the
                                                                                                      \nEffective Time (rounded down to the nearest whole number), at a price per share (rounded up to the nearest whole cent) equal to (i) the aggregate exercise price for the shares of Target Common
                                                                                                      \nStock otherwise purchasable pursuant to such Target Option divided by (ii) the number of full
                                                                                                      \nshares of Acquiror Common Stock deemed purchasable pursuant to such Acquiror Option in accordance with the foregoing; provided<\/u>, however<\/u>, that,
                                                                                                      \nin the case of any Target Option to which Section 422 of the Code applies (“<\/font>incentive stock options<\/b><\/font>“), the option price, the number of shares
                                                                                                      \npurchasable pursuant to such option and the terms and conditions of exercise of such option shall be determined in order to comply with Section 424(a) of the Code. In connection with the
                                                                                                      \nassumption by Acquiror of the Target Options pursuant to this Section 6.4(a), Target shall be deemed to have assigned to Acquiror, effective at the Effective Time, Target’s right to repurchase
                                                                                                      \nunvested shares of Target Common Stock issuable upon the exercise of the Target Options or previously issued upon the exercise of options granted under the Target Option Plan, in accordance with the
                                                                                                      \nterms of the Target Option Plan and the related stock option agreements and stock purchase agreements entered into under the Target Option Plan. <\/font><\/p>\n
                                                                                                          (b) As
                                                                                                      \nsoon as practicable after the Effective Time, Acquiror shall deliver to the participants in the Target Option Plan appropriate notice setting forth such
                                                                                                      \nparticipants’ rights pursuant thereto and the grants pursuant to the Target Option Plan shall continue in effect on the same terms and conditions (subject to the adjustments required by this
                                                                                                      \nSection 6.4 after giving effect to the Merger). Acquiror shall comply with the terms of the Target Option Plan and the parties intend that, to the extent required by, and subject to the
                                                                                                      \nprovisions of, such Target Option Plan and Sections 422 and 424(a) of the Code, that Target Options which qualified as incentive stock options prior the Effective Time continue to qualify as incentive
                                                                                                      \nstock options after the Effective Time, and this provision shall be interpreted consistent with that intent. <\/font><\/p>\n
                                                                                                          (c) Acquiror
                                                                                                      \nshall take all corporate action necessary to reserve for issuance a sufficient number of shares of Acquiror Common Stock for delivery upon exercise of
                                                                                                      \nTarget Options assumed in accordance with this Section 6.4. As soon as practicable after the Effective Time and in any event no later than 45 days after the Closing Date, Acquiror shall
                                                                                                      \nfile a registration statement on Form S-8 (or any successor or other appropriate forms) under the Securities Act or another appropriate form with respect to the shares of
                                                                                                      \nAcquiror Common Stock subject to such options and shall use its best efforts to maintain the effectiveness of such registration statement or registration statements (and maintain the current status of
                                                                                                      \nthe prospectus or prospectuses contained therein) for so long as such options remain outstanding. <\/font><\/p>\n<\/ul>\n
                                                                                                          Section 6.5  Nasdaq
                                                                                                      \nNational Market Listing<\/u>. Acquiror will cause the shares of Acquiror Common Stock issuable to the stockholders of
                                                                                                      \nTarget in the Merger and to the holders of Target Options to be assumed by Acquiror in the Merger to be authorized for listing on the Nasdaq National Market. <\/font><\/p>\n
                                                                                                          Section 6.6  Certain
                                                                                                      \nEmployee Benefit Matters<\/u>. From and after the Effective Time, employees of Target at the Effective Time will be
                                                                                                      \nprovided with employee benefits by the Surviving Corporation or Acquiror which in the aggregate are no less favorable to such employees than those provided from time to time by Acquiror to its
                                                                                                      \nsimilarly situated employees. If any employee of Target becomes a participant in any employee benefit plan, program, policy or arrangement of Acquiror, such employee shall be given <\/font><\/p>\n
                                                                                                      29<\/font><\/p>\n
                                                                                                      \n

                                                                                                      \ncredit for all service prior to the Effective Time with Target to the extent permissible under such plan, program, policy or arrangement. <\/font><\/p>\n
                                                                                                          Section 6.7  Director
                                                                                                      \nand Officer Liability<\/u>. For six years after the Effective Time, the Surviving Corporation shall indemnify and
                                                                                                      \nhold harmless the present and former officers, directors, employees and agents of Target in respect of acts and omissions occurring on or prior to the Effective Time to the extent required by Target’s
                                                                                                      \nCertificate of Incorporation and Bylaws in effect on the date hereof; provided that such indemnification shall be subject to any limitation imposed from time to time under applicable law. <\/font><\/p>\n
                                                                                                      ARTICLE
                                                                                                      \nVII <\/font><\/p>\n
                                                                                                      OTHER
                                                                                                      \nAGREEMENTS <\/font><\/p>\n
                                                                                                          Section 7.1  Confidentiality<\/u>.
                                                                                                      \nEach party acknowledges that Acquiror and Target have previously executed a Mutual
                                                                                                      \nNon-Disclosure Agreement dated as of May 26, 2000 (the “<\/font>Confidentiality Agreement<\/b><\/font>“), which agreement shall continue in full force and
                                                                                                      \neffect in accordance with its terms. <\/font><\/p>\n
                                                                                                          Section 7.2  No
                                                                                                      \nPublic Announcement<\/u>. The parties shall make no public announcement concerning this Agreement, their discussions or
                                                                                                      \nany other memoranda, letters or agreements between the parties relating to the Merger; provided<\/u>,however<\/u>, that either of the parties, but only
                                                                                                      \nafter reasonable consultation with the other, may make disclosure if required under applicable law; and provided<\/u> further<\/u>,
                                                                                                      \nhowever<\/u>, that following execution of this Agreement or consummation of the Merger, Acquiror may make a public announcement regarding the Merger and the integration of
                                                                                                      \nTarget’s business into that of Acquiror. The parties have agreed upon the form and substance of a press release to be issued by Acquiror announcing the Merger and the execution of this Agreement. <\/font><\/p>\n
                                                                                                          Section 7.3  Regulatory
                                                                                                      \nFilings; Consents; Reasonable Efforts<\/u>. <\/font><\/p>\n
                                                                                                        \n
                                                                                                            (a) Subject
                                                                                                        \nto the terms and conditions of this Agreement, Target and Acquiror shall use their respective reasonable good faith efforts to (i) make all necessary
                                                                                                        \nfilings with respect to the Merger and this
                                                                                                        \nAgreement under the Exchange Act, the Securities Act and applicable blue sky or similar securities laws and obtain required approvals and clearances with respect thereto and supply all additional
                                                                                                        \ninformation requested in connection therewith; (ii) make merger notification or other appropriate filings with federal, state or local governmental bodies or applicable foreign governmental
                                                                                                        \nagencies and obtain required approvals and clearances with respect thereto and supply all additional information requested in connection therewith; (iii) obtain all consents, waivers,
                                                                                                        \napprovals, authorizations and orders required in connection with the authorization, execution and delivery of this Agreement and the consummation of the Merger, including those required under the HSR
                                                                                                        \nAct and any other applicable Antitrust Law; and (iv) take, or cause to be taken, all appropriate action, and do, or cause to be done, all things necessary, proper or advisable to consummate and
                                                                                                        \nmake effective the transactions contemplated by this Agreement as promptly as practicable. <\/font><\/p>\n
                                                                                                            (b) Each
                                                                                                        \nof Acquiror and Target shall use all reasonable efforts to resolve such objections, if any, as may be asserted by any Governmental Entity with respect to the
                                                                                                        \ntransactions contemplated by this Agreement under the HSR Act, the Sherman Act, as amended, the Clayton Act, as amended, the Federal Trade Commission Act, as amended, and any other Federal, state or
                                                                                                        \nforeign statutes, rules, regulations, orders or decrees that are designed to prohibit, restrict or regulate actions having the purpose or effect of monopolization or restraint of trade (collectively,
                                                                                                        \n“<\/font>Antitrust Laws<\/b><\/font>“). In connection therewith, if any administrative or judicial action or proceeding is instituted (or threatened to be instituted)
                                                                                                        \nchallenging any transaction contemplated by this Agreement as violative of any Antitrust Law, each of Acquiror and Target shall cooperate and use all reasonable efforts vigorously to contest and
                                                                                                        \nresist any such action or proceeding and to have vacated, lifted, reversed, or overturned any decree, judgment, injunction or other order, whether temporary, preliminary or permanent (each an
                                                                                                        \n“<\/font>Order<\/b><\/font>“), that is in effect and that prohibits, prevents, or restricts consummation of the Merger or any such other transactions, unless by mutual
                                                                                                        \nagreement Acquiror and Target decide that litigation is not <\/font><\/p>\n<\/ul>\n
                                                                                                        30<\/font><\/p>\n
                                                                                                        \n
                                                                                                          \n

                                                                                                          \nin their respective best interests. The parties hereto will consult and cooperate with one another, and consider in good faith the views of one another, in connection with any analyses, appearances,
                                                                                                          \npresentations, memoranda, briefs, arguments, opinions and proposals made or submitted by or on behalf of any party hereto in connection with proceedings under or relating to any Antitrust Laws.
                                                                                                          \nNotwithstanding the provisions of the immediately preceding sentence, it is expressly understood and agreed that neither Acquiror nor Target shall be obligated to litigate or contest any
                                                                                                          \nadministrative or judicial action or proceeding or any Order beyond September 30, 2000. Each of Acquiror and Target shall use all reasonable efforts to take such action as may be required to
                                                                                                          \ncause the expiration of the waiting periods under the HSR Act or other Antitrust Laws with respect to such transactions as promptly as possible after the execution of this Agreement;
                                                                                                          \nprovided<\/u>, however<\/u>, that nothing contained herein shall require either party to seek early termination of any such waiting period under the
                                                                                                          \nAntitrust Laws. <\/font><\/p>\n
                                                                                                              (c) Notwithstanding
                                                                                                          \nanything to the contrary in Section 7.3(a) or (b), (i) neither Acquiror nor any of it subsidiaries shall be required to divest any of
                                                                                                          \ntheir respective businesses, product lines or assets, or to take or agree to take any other action or agree to any limitation that could reasonably be expected to
                                                                                                          \nhave a Material Adverse Effect on Acquiror or of Acquiror combined with the Surviving Corporation after the Effective Time or (ii) Target shall not be required to divest any of its respective
                                                                                                          \nbusinesses, product lines or assets, or to take or agree to take any other action or agree to any limitation that could reasonably be expected to have a Material Adverse Effect on Target. <\/font><\/p>\n
                                                                                                              (d) From
                                                                                                          \nthe date of this Agreement until the earlier of the Effective Time or the termination of this Agreement, each party shall promptly notify the other party in
                                                                                                          \nwriting of any pending or, to the knowledge of such party, threatened action, proceeding or investigation by any Governmental Entity or any other person (i) challenging or seeking material
                                                                                                          \ndamages in connection with this Agreement or the transactions contemplated hereunder or (ii) seeking to restrain or prohibit the consummation of the Merger or the transactions contemplated
                                                                                                          \nhereunder or otherwise limit the right of Acquiror or its subsidiaries to own or operate all or any portion of the businesses or assets of Target. <\/font><\/p>\n<\/ul>\n
                                                                                                              Section 7.4  Pooling
                                                                                                          \nAccounting<\/u>. Target and Acquiror shall each use reasonable good faith efforts, and shall each use its reasonable
                                                                                                          \ngood faith efforts to cause its respective Affiliates, to cause the business combination to be effected by the Merger to be accounted for as a pooling of interests and to cause such treatment to be
                                                                                                          \naccepted by the SEC. Neither Target nor Acquiror shall take any action that would adversely affect the ability of Acquiror to account for the business combination to be effected by the Merger as a
                                                                                                          \npooling of interests. Consistent with the foregoing, Target agrees that, to the extent it is determined that any of its employees, directors or stockholders will receive payments in connection with
                                                                                                          \nthe Merger that would result in an excise tax to the recipient pursuant to Section 4999 of the Code and result in a nondeductible expense to Target pursuant to Section 280G of the Code,
                                                                                                          \nit will not seek the approval of its stockholders to exempt the payments from such excise tax. Schedule 7.4 sets forth those persons who, in Target’s reasonable judgment are or may, at any time
                                                                                                          \nprior to the Closing Date, be “affiliates” of Target within the meaning of the SEC’s Accounting Releases Nos. 130 and 135 (the <\/font>“Target Affiliates”<\/b><\/font>).
                                                                                                          \nTarget shall provide Acquiror such information and documents as Acquiror shall reasonably request for purposes of reviewing such list. Target shall use its commercially reasonable efforts to deliver
                                                                                                          \nor cause to be delivered to Acquiror on or prior to the Closing from each of the Target Affiliates an executed Affiliate Agreement. <\/font><\/p>\n
                                                                                                              Section 7.5  Further
                                                                                                          \nAssurances<\/u>. Prior to and following the Closing, each party agrees to cooperate fully with the other parties and
                                                                                                          \nto execute such further instruments, documents and agreements and to give such further written assurances, as may be reasonably requested by any other party to better evidence and reflect the
                                                                                                          \ntransactions described herein and contemplated hereby and to carry into effect the intents and purposes of this Agreement. <\/font><\/p>\n
                                                                                                              Section 7.6  Escrow
                                                                                                          \nAgreement<\/u>. On or before the Effective Time, Acquiror shall, and the parties hereto shall exercise their
                                                                                                          \nreasonable good faith efforts to cause the Escrow Agent (as defined in <\/font><\/p>\n
                                                                                                          31<\/font><\/p>\n
                                                                                                          \n

                                                                                                          \nSection 10.2) and the Stockholders’ Agents (as defined in Section 10.9), to enter into an Escrow Agreement in substantially the form attached hereto as
                                                                                                          \nExhibit E<\/u>. <\/font><\/p>\n
                                                                                                              Section 7.7  FIRPTA<\/u>.
                                                                                                          \nTarget shall, prior to the Closing Date, provide Acquiror with a properly executed Foreign Investment and Real
                                                                                                          \nProperty Tax Act of 1980 (“<\/font>FIRPTA<\/b><\/font>“) FIRPTA Notification Letter which states that shares of capital stock of Target do not constitute “United States real
                                                                                                          \nproperty interests” under Section 897(c) of the Code, for purposes of satisfying Acquiror’s obligations under Treasury Regulation Section 1.1445-2(c)(3). In addition,
                                                                                                          \nsimultaneously with delivery of such FIRPTA Notification Letter, Target shall provide to Acquiror, as agent for Target, a form of notice to the Internal Revenue Service in accordance with the
                                                                                                          \nrequirements of Treasury Regulation Section 1.897-2(h)(2), along with written authorization for Acquiror to deliver such notice form to the Internal Revenue Service on behalf of
                                                                                                          \nTarget upon the Closing of the Merger. <\/font><\/p>\n
                                                                                                              Section 7.8  Blue
                                                                                                          \nSky Laws<\/u>. Acquiror shall take such steps as may be necessary to comply with the securities and blue sky laws of
                                                                                                          \nall jurisdictions which are applicable to the issuance of the Acquiror Common Stock in connection with the Merger. Target shall use its reasonable good faith efforts to assist Acquiror as may be
                                                                                                          \nnecessary to comply with the securities and blue sky laws of all jurisdictions which are applicable in connection with the issuance of Acquiror Common Stock in connection with the Merger. <\/font><\/p>\n
                                                                                                              Section 7.9  Other
                                                                                                          \nFilings<\/u>. As promptly as practicable after the date of this Agreement, Target and Acquiror will prepare and file
                                                                                                          \nany other filings required under the Exchange Act, the Securities Act or any other Federal, foreign or state securities or blue sky laws relating to the Merger and the transactions contemplated by
                                                                                                          \nthis Agreement (the “<\/font>Other Filings<\/b><\/font>“). The Other Filings will comply in all material respects with all applicable requirements of law and the rules and
                                                                                                          \nregulations promulgated thereunder. Whenever any event occurs which is required to be set forth in an amendment or supplement to the Other Filings, Target or Acquiror, as the case may be, will
                                                                                                          \npromptly inform the other of such occurrence and cooperate in making any appropriate amendment or supplement, and\/or mailing to stockholders of Target, such amendment or supplement. <\/font><\/p>\n
                                                                                                              Section 7.10  Qualification
                                                                                                          \nof Merger as a Reorganization<\/u>. It is the intent of the parties to this Agreement that the Merger qualify
                                                                                                          \nas a reorganization under Section 368(a) of the Code, and each of Acquiror, Sub, the Target and the Surviving Corporation covenants and agrees not to take any position on any Return or report
                                                                                                          \nrelating to Taxes inconsistent with such intent. Each of Acquiror, Sub, the Target and the Surviving Corporation agrees not to take any action either before or after the Effective Time that could
                                                                                                          \nreasonably be expected to cause the Merger not to be treated as a “reorganization” under Section 368(a) of the Code. <\/font><\/p>\n
                                                                                                          ARTICLE
                                                                                                          \nVIII <\/font><\/p>\n
                                                                                                          CONDITIONS
                                                                                                          \nTO MERGER <\/font><\/p>\n
                                                                                                              Section 8.1  Conditions
                                                                                                          \nto Each Party’s Obligation to Effect the Merger<\/u>. The respective obligations of each party to this Agreement
                                                                                                          \nto effect the Merger shall be subject to the satisfaction prior to the Closing Date of the following conditions: <\/font><\/p>\n
                                                                                                            \n
                                                                                                                (a) Stockholder
                                                                                                            \nApproval<\/u>. The stockholders of Target entitled to vote on or consent to this Agreement and the Merger in accordance with
                                                                                                            \nDelaware Law and, to the extent, applicable, California Law and Target’s Certificate of Incorporation shall have approved this Agreement and the Merger. <\/font><\/p>\n
                                                                                                                (b) Approvals<\/u>.
                                                                                                            \nOther than the filing provided for by Section 1.1(b), all authorizations, consents, orders or approvals of, or
                                                                                                            \ndeclarations or filings with, or expirations of waiting periods imposed by, any Governmental Entity, including those contemplated by the HSR Act and the other applicable Antitrust Laws, shall have
                                                                                                            \nbeen filed, occurred or been obtained. <\/font><\/p>\n<\/ul>\n
                                                                                                            32<\/font><\/p>\n
                                                                                                            \n
                                                                                                              \n

                                                                                                              \n    (c) No Injunctions or Restraints; Illegality<\/u>. No temporary restraining order, preliminary or permanent injunction or other order issued by
                                                                                                              \nany court of competent jurisdiction or other legal or regulatory restraint or prohibition preventing the consummation of the Merger or limiting or restricting the conduct or operation of the business
                                                                                                              \nof Target by Acquiror after the Merger shall have been issued, nor shall any proceeding brought by a domestic administrative agency or commission or other domestic Governmental Entity or other third
                                                                                                              \nparty, seeking any of the foregoing be pending; nor shall there be any action taken, or any statute, rule, regulation or order enacted, entered, enforced or deemed applicable to the Merger which makes
                                                                                                              \nthe consummation of the Merger illegal. <\/font><\/p>\n
                                                                                                                  (d) Issuance
                                                                                                              \nof Permit or Effectiveness of Registration Statement<\/u>. Either the Permit shall have been issued by the Commissioner or the SEC
                                                                                                              \nshall have declared the Registration Statement effective. No stop order suspending the effectiveness of the Permit or Registration Statement, as the case may be, or any part thereof shall have been
                                                                                                              \nissued and no proceeding for that purpose, and no similar proceeding in respect of the Permit or Registration Statement, as the case may be, shall have been initiated or
                                                                                                              \nthreatened by the SEC or the Department of Corporations, as the case may be; and all requests for additional information on the part of the SEC or the Department of Corporations, as the case may be,
                                                                                                              \nshall have been complied with to the reasonable satisfaction of the parties hereto. <\/font><\/p>\n
                                                                                                                  (e) Nasdaq
                                                                                                              \nNational Market<\/u>. The shares of Acquiror’s Common Stock to be issued in the Merger and pursuant to exercise of assumed Target
                                                                                                              \nOptions shall have been approved for quotation on the Nasdaq National Market. <\/font><\/p>\n
                                                                                                                  (f)  Tax
                                                                                                              \nOpinion<\/u>. Acquiror and Target shall each have received the written opinion dated the Closing Date from its respective tax counsel
                                                                                                              \n(Venture Law Group, A Professional Corporation, and Perkins Coie LLP, respectively) in the form and substance reasonably satisfactory to it, to the effect that the Merger will be treated for Federal
                                                                                                              \nincome tax purposes as a tax-free reorganization within the meaning of Section 368(a) of the Code. In rendering such opinion, counsel shall be entitled to rely upon, among other
                                                                                                              \nthings, reasonable assumptions as well as representations of Acquiror, Sub and Target. Target and Acquiror and Sub shall execute and deliver to Perkins Coie LLP and Venture Law Group, A Professional
                                                                                                              \nCorporation, certificates substantially in the form attached hereto as Exhibits G-1 and G-2, respectively, at such time or times as reasonably requested by Perkins Coie
                                                                                                              \nLLP and Venture Law Group, A Professional Corporation, in connection with the delivery of the opinion contemplated herein. <\/font><\/p>\n<\/ul>\n
                                                                                                                  Section 8.2  Additional
                                                                                                              \nConditions to Obligations of Acquiror and Sub<\/u>. The obligations of Acquiror and Sub to effect the Merger are
                                                                                                              \nsubject to the satisfaction of each of the following conditions, any of which may be waived in writing exclusively by Acquiror and Sub: <\/font><\/p>\n
                                                                                                                \n
                                                                                                                    (a) Representations
                                                                                                                \nand Warranties<\/u>. The representations and warranties of Target set forth in this Agreement shall be true and correct in
                                                                                                                \nall material respects, taken in the aggregate, as of the date of this Agreement and (except to the extent such representations and warranties speak as of an earlier date) as of the Closing Date as
                                                                                                                \nthough made on and as of the Closing Date, except for changes contemplated by this Agreement; and Acquiror shall have received a certificate signed on behalf of Target by the chief executive officer
                                                                                                                \nand the chief financial officer of Target to such effect. <\/font><\/p>\n
                                                                                                                    (b) Performance
                                                                                                                \nof Obligations of Target<\/u>. Target shall have performed in all material respects all obligations required to be performed by
                                                                                                                \nit under this Agreement at or prior to the Closing Date; and Acquiror shall have received a certificate signed on behalf of Target by the chief executive officer of Target to such effect. <\/font><\/p>\n
                                                                                                                    (c) Blue
                                                                                                                \nSky Laws<\/u>. Acquiror shall have received all state securities or “Blue Sky” permits and other authorizations necessary to issue
                                                                                                                \nshares of Acquiror Common Stock pursuant to the Merger. <\/font><\/p>\n
                                                                                                                    (d) Dissenting
                                                                                                                \nStockholders<\/u>. Holders of not more than five percent (5%) of Target’s issued and outstanding capital stock as of the Closing
                                                                                                                \nshall have elected to exercise appraisal rights under Delaware Law or California Law, as the case may be, as to such shares. <\/font><\/p>\n<\/ul>\n
                                                                                                                33<\/font><\/p>\n
                                                                                                                \n
                                                                                                                  \n

                                                                                                                  \n    (e) Escrow Agreement<\/u>. The Escrow Agent and Stockholders’ Agents shall have executed and delivered to Acquiror the Escrow Agreement and such
                                                                                                                  \nagreement shall remain in full force and effect. <\/font><\/p>\n
                                                                                                                      (f)  Noncompetition
                                                                                                                  \nAgreements<\/u>. Each of the Noncompetition Agreements executed and delivered concurrently with the execution of this
                                                                                                                  \nAgreement shall remain in full force and effect. <\/font><\/p>\n
                                                                                                                      (g) Stockholders
                                                                                                                  \nAgreements<\/u>. Each of the holders of Target Common Stock and Target Preferred Stock as of the Closing Date shall have
                                                                                                                  \nexecuted and delivered to Acquiror a Stockholders Agreement and such agreements shall remain in full force and effect. <\/font><\/p>\n
                                                                                                                      (h) Affiliate
                                                                                                                  \nAgreements<\/u>. Each of the Target Affiliates identified on Schedule 7.4 shall have executed and delivered to Acquiror an
                                                                                                                  \nAffiliate Agreement and such agreement shall remain in full force and effect. <\/font><\/p>\n
                                                                                                                      (i)  Opinion
                                                                                                                  \nof Target’s Counsel<\/u>. Acquiror shall have received an opinion dated the Closing Date of Perkins Coie, counsel to Target, as to
                                                                                                                  \nthe matters in the form attached hereto as Exhibit F. <\/font><\/p>\n
                                                                                                                      (j)  Approvals<\/u>.
                                                                                                                  \nAll authorizations, consents (including the Material Consents), or approvals of, or notifications to any third party,
                                                                                                                  \nrequired by Target’s contracts, agreements or other obligations in connection with the consummation of the Merger shall have occurred or been obtained. <\/font><\/p>\n
                                                                                                                      (k) Employees<\/u>.
                                                                                                                  \nNone of the employees listed on Schedule 8.2(k)-1, and not more than two of the employees listed on
                                                                                                                  \nSchedule 8.2(k)-2, shall have ceased to be employed by Target or expressed an intention to terminate his or her employment with Target or to decline to accept employment with
                                                                                                                  \nAcquiror. <\/font><\/p>\n
                                                                                                                      (l)  Termination
                                                                                                                  \nof Lease or Qualified Sublease<\/u>. Acquiror shall have received written evidence to its satisfaction that the 555 Market
                                                                                                                  \nStreet Lease Agreement shall have been terminated in all respects with no continuing obligation of Target thereunder and shall have received a written release of all claims with respect to such lease,
                                                                                                                  \nin form reasonably satisfactory to Acquiror, executed by the Landlord in favor of Target, or, alternatively, Target shall have entered into a Qualified Sublease. <\/font><\/p>\n
                                                                                                                      (m) Board
                                                                                                                  \nResignations<\/u>. Target shall have received written letters of resignation from the Target Board of Directors from each of the
                                                                                                                  \ncurrent members of such Board, in each case effective at the Effective Time. <\/font><\/p>\n
                                                                                                                      (n) Pooling
                                                                                                                  \nLetters<\/u>. Acquiror shall have received from PricewaterhouseCoopers LLP, independent accountants for Acquiror, a letter dated as
                                                                                                                  \nof the Closing Date (which may contain customary qualifications and assumptions), to the effect that PricewaterhouseCoopers LLP concurs with Acquiror’s management’s conclusion that Acquiror may
                                                                                                                  \naccount for the Merger as a pooling of interests under Accounting Principles Board Opinion No. 16; and Target shall have received from Ernst & Young LLP, independent accountants for
                                                                                                                  \nTarget, a letter dated as of the Closing Date (which may contain customary qualifications and assumptions), to the effect that Ernst & Young LLP concurs with Target’s management’s conclusion
                                                                                                                  \nthat no conditions exist related to Target that would preclude Acquiror from accounting for the Merger as a pooling of interests under Accounting Principles Board Opinion No. 16. <\/font><\/p>\n
                                                                                                                      (o) Conversion
                                                                                                                  \nof Target Preferred Stock<\/u>. Each issued and outstanding share of Target Preferred Stock shall have been converted into shares
                                                                                                                  \nof Target Common Stock in accordance with Target’s Certificate of Incorporation, and each holder of Target Preferred Stock shall have waived prior notice of the consummation of the Merger. <\/font><\/p>\n
                                                                                                                      (p) Termination
                                                                                                                  \nof Target Agreements<\/u>. Target’s Amended and Restated Investors’ Rights Agreement dated December 14, 1999 and the
                                                                                                                  \nSecond Amended and Restated Voting Agreement dated December 14, 1999 each shall have been terminated. <\/font><\/p>\n
                                                                                                                      (q) Termination
                                                                                                                  \nof 401(k) Plan<\/u>. Target shall have terminated Target’s 401(k) Plan effective at least one day prior to the Closing Date and
                                                                                                                  \nno further contributions shall have been made to the 401(k) Plan. Target shall have provided to Acquiror (i) executed resolutions of the board of directors <\/font><\/p>\n<\/ul>\n
                                                                                                                  34<\/font><\/p>\n
                                                                                                                  \n
                                                                                                                    \n

                                                                                                                    \nof Target authorizing the termination and (ii) an executed amendment to the 401(k) Plan sufficient to assure compliance with applicable requirements of the Code and regulations thereunder so
                                                                                                                    \nthat the tax-qualified status of the 401(k) Plan will be maintained at the time of termination. <\/font><\/p>\n
                                                                                                                        (r) Schedule
                                                                                                                    \nof Transaction Expenses<\/u>. Target shall have delivered to Acquiror an itemized schedule setting forth the aggregate amount of
                                                                                                                    \nTransaction Expenses (as defined in Section 9.3(b) hereof) incurred, or to be incurred, by Target through the Closing Date (such amount being, the <\/font>“Aggregate Transaction
                                                                                                                    \nExpenses”<\/b><\/font>). <\/font><\/p>\n
                                                                                                                        (s) Withdrawal
                                                                                                                    \nof Registration Statement<\/u>. Target shall have taken all steps necessary to cause Target’s Form S-1 to have
                                                                                                                    \nbeen withdrawn from registration with the SEC. <\/font><\/p>\n
                                                                                                                        (t)  Confidentiality
                                                                                                                    \nAgreements<\/u>. Each current employee of, and contractor and consultant to, Target or one its Subsidiaries identified on
                                                                                                                    \nSchedule 3.8(e) of the Target Disclosure Schedule as failing to have entered into prior to the date hereof a confidentiality, non-disclosure and proprietary inventions assignment
                                                                                                                    \nagreement in the form of agreement previously provided to Acquiror or its representatives shall have entered into such an agreement with Target. <\/font><\/p>\n
                                                                                                                    \n
                                                                                                                    (u)<\/font><\/dt>\n
                                                                                                                    Exercise
                                                                                                                    \nof Target Warrants<\/u>. Each of the issued and outstanding Target Warrants shall have been exercised prior to the Effective Time and no Target
                                                                                                                    \nWarrants shall remain outstanding at such time. <\/font><\/dd>\n<\/dl>\n<\/ul>\n
                                                                                                                        Section 8.3  Additional
                                                                                                                    \nConditions to Obligations of Target<\/u>. The obligation of Target to effect the Merger is subject to the
                                                                                                                    \nsatisfaction of each of the following conditions, any of which may be waived, in writing, exclusively by Target: <\/font><\/p>\n
                                                                                                                      \n
                                                                                                                          (a) Representations
                                                                                                                      \nand Warranties<\/u>. The representations and warranties of Acquiror and Sub set forth in this Agreement shall be true and
                                                                                                                      \ncorrect in all material respects, taken in the aggregate, as of the date of this Agreement and (except to the extent such representations speak as of an earlier date) as of the Closing Date as though
                                                                                                                      \nmade on and as of the Closing Date, and Target shall have received a certificate signed on behalf of Acquiror by the chief financial officer of Acquiror to such effect. <\/font><\/p>\n
                                                                                                                          (b) Performance
                                                                                                                      \nof Obligations of Acquiror and Sub<\/u>. Acquiror and Sub shall have performed in all material respects all obligations required
                                                                                                                      \nto be performed by them under this Agreement at or prior to the Closing Date; and Target shall have received a certificate signed on behalf of Acquiror by the chief financial officer of Acquiror to
                                                                                                                      \nsuch effect. <\/font><\/p>\n
                                                                                                                          (c) Opinion
                                                                                                                      \nof Acquiror’s Counsel<\/u>. Target’s stockholders shall have received an opinion dated the Closing Date of Venture Law Group, A
                                                                                                                      \nProfessional Corporation, counsel to Acquiror and Sub, as to the matters in the form attached hereto as Exhibit I<\/u>. <\/font><\/p>\n
                                                                                                                      ARTICLE
                                                                                                                      \nIX <\/font><\/p>\n
                                                                                                                      TERMINATION
                                                                                                                      \nAND AMENDMENT <\/font><\/p>\n<\/ul>\n
                                                                                                                          Section 9.1  Termination<\/u>.
                                                                                                                      \nThis Agreement may be terminated at any time prior to the Effective Time: <\/font><\/p>\n
                                                                                                                        \n
                                                                                                                            (a) by
                                                                                                                        \nmutual written consent of Acquiror and Target; <\/font><\/p>\n
                                                                                                                            (b) by
                                                                                                                        \neither Acquiror or Target, by giving written notice to the other party, if a court of competent jurisdiction or other Governmental Entity shall have issued a
                                                                                                                        \nnonappealable final order, decree or ruling or taken any other action, in each case having the effect of permanently restraining, enjoining or otherwise prohibiting the Merger, except, if such party
                                                                                                                        \nrelying on such order, decree or ruling or other action shall not have complied with its respective obligations under Sections 5.5 or 6.3 of this Agreement, as the case may be; <\/font><\/p>\n<\/ul>\n
                                                                                                                        35<\/font><\/p>\n
                                                                                                                        \n
                                                                                                                          \n

                                                                                                                          \n    (c) by Acquiror or Target, by giving written notice to the other party, if the other party is in material breach of any representation, warranty, or covenant of such
                                                                                                                          \nother party contained in this Agreement, which breach shall not have been cured, if subject to cure, within 10 business days following receipt by the breaching party of written notice of such breach
                                                                                                                          \nby the other party; <\/font><\/p>\n
                                                                                                                              (d) by
                                                                                                                          \nAcquiror, by giving written notice to Target, if the Closing shall not have occurred on or before September 30, 2000 by reason of the failure of any
                                                                                                                          \ncondition precedent under Section 8.1 or 8.2 (unless the failure results primarily from a breach by Acquiror of any representation, warranty, or covenant of Acquiror contained in this Agreement
                                                                                                                          \nor Acquiror’s failure to fulfill a condition precedent to closing or
                                                                                                                          \nother default); provided<\/u>, however<\/u>, that if the failure of such condition precedent is due to a request for additional information from a
                                                                                                                          \nGovernmental Entity pursuant to the HSR Act or any other applicable Antitrust Law, such date shall be automatically extended to the 90th<\/sup> day following acknowledgment by such Governmental
                                                                                                                          \nEntity that Acquiror and Target have complied with such request, but in no event shall such date be later than December 31, 2000; and provided<\/u>
                                                                                                                          \nfurther<\/u>, however<\/u>, that if for any reason the Commissioner shall not issue the Permit and the parties instead shall file the Registration
                                                                                                                          \nStatement with the SEC pursuant to Section 5.1, such date shall be automatically extended to December 31, 2000. <\/font><\/p>\n
                                                                                                                              (e) by
                                                                                                                          \nTarget, by giving written notice to Acquiror, if the Closing shall not have occurred on or before September 30, 2000 by reason of the failure of any
                                                                                                                          \ncondition precedent under Section 8.1 or 8.3 (unless the failure results primarily from a breach by Target of any representation, warranty, or covenant of Target contained in this Agreement or
                                                                                                                          \nTarget’s failure to fulfill a condition precedent to closing or other default); provided<\/u>, however<\/u>, that if the failure of such condition
                                                                                                                          \nprecedent is due to a request for additional information from a Governmental Entity pursuant to the HSR Act or any other applicable Antitrust Law, such date shall be automatically extended to the
                                                                                                                          \n90th<\/sup> day following acknowledgment by such Governmental Entity that Acquiror and Target have complied with such request, but in no event shall such date be later than December 31,
                                                                                                                          \n2000; and provided<\/u> further<\/u>, however<\/u>, that if for any reason the Commissioner shall not issue the Permit and the
                                                                                                                          \nparties instead shall file the Registration Statement with the SEC pursuant to Section 5.1, such date shall be automatically extended to December 31, 2000; and <\/font><\/p>\n
                                                                                                                              (f)  by
                                                                                                                          \nAcquiror, by giving written notice to Target, if the required approvals of the stockholders of Target contemplated by this Agreement shall not have been
                                                                                                                          \nobtained by reason of the failure to obtain the required consents or votes upon a vote taken by written consent or at a meeting of stockholders, duly convened therefor or at any adjournment thereof. <\/font><\/p>\n<\/ul>\n
                                                                                                                              Section 9.2  Effect
                                                                                                                          \nof Termination<\/u>. In the event of termination of this Agreement as provided in Section 9.1, this Agreement
                                                                                                                          \nshall immediately become void and there shall be no liability or obligation on the part of Acquiror, Target, Sub or their respective officers, directors, stockholders or Affiliates, except as set
                                                                                                                          \nforth in Section 9.3 and further except to the extent that such termination results from the willful breach by any such party of any of its representations, warranties or covenants set forth in
                                                                                                                          \nthis Agreement. <\/font><\/p>\n
                                                                                                                              Section 9.3  Fees
                                                                                                                          \nand Expenses<\/u>. <\/font><\/p>\n
                                                                                                                            \n
                                                                                                                                (a) Except
                                                                                                                            \nas set forth in this Section 9.3, all fees and expenses incurred in connection with this Agreement and the transactions contemplated hereby shall be
                                                                                                                            \npaid by the party incurring such expenses, whether or not the Merger is consummated. Target has submitted a budget to Acquiror for completion
                                                                                                                            \nof the Merger. Target shall use its best efforts to consummate the Merger within such budget and shall not enter into any agreement inconsistent with such budget. <\/font><\/p>\n
                                                                                                                                (b) If
                                                                                                                            \nthe Merger is consummated, all legal, accounting, investment banking, broker’s and finder’s fees and expenses incurred by Target or its stockholders in
                                                                                                                            \nconnection with the Merger (the <\/font>“Transaction Expenses”<\/b><\/font>) shall be deemed expenses of the stockholders of Target, and shall be treated as a reduction in
                                                                                                                            \nthe Total Consideration Shares and borne by the stockholders of Target as provided in Section 2.1(c)(ii) and this Section 9.3(b). Any Transaction Expenses incurred by Target after
                                                                                                                            \nthe Effective Time in excess of the amount of Aggregate Transaction Expenses set forth on the itemized <\/font><\/p>\n<\/ul>\n
                                                                                                                            36<\/font><\/p>\n
                                                                                                                            \n
                                                                                                                              \n

                                                                                                                              \nschedule delivered by Target to Acquiror pursuant to Section 8.2(r) hereof shall be recoverable from the Escrow Fund (as defined in Section 10.2) as Damages (as defined in
                                                                                                                              \nSection 10.1). <\/font><\/p>\n
                                                                                                                              ARTICLE
                                                                                                                              \nX <\/font><\/p>\n
                                                                                                                              ESCROW
                                                                                                                              \nAND INDEMNIFICATION <\/font><\/p>\n<\/ul>\n
                                                                                                                                  Section 10.1  Indemnification<\/u>.
                                                                                                                              \nFrom and after the Effective Time and subject to the limitations contained in Section 10.2,
                                                                                                                              \nthe Former Target Stockholders will, severally but not jointly and pro rata up to but not exceeding their Pro Rata Portion, indemnify Acquiror, Acquiror’s current and future affiliates (including the
                                                                                                                              \nSurviving Corporation), the respective officers, directors, employees, agents, attorneys, accountants, advisors and representatives of such entities and the respective successors and assigns of such
                                                                                                                              \nentities (collectively, the “<\/font>Indemnified Parties<\/b><\/font>“) and hold the Indemnified Parties harmless against any loss, expense, liability or other damage,
                                                                                                                              \nincluding attorneys’ fees, to the extent of the amount of such loss, expense, liability or other damage (collectively “<\/font>Damages<\/b><\/font>“) that the Indemnified
                                                                                                                              \nParties have incurred by reason of the breach or alleged breach by Target of any representation, warranty, covenant or agreement of Target contained in this Agreement or in the certificates to be
                                                                                                                              \ndelivered pursuant to Sections 8.2(a) and 8.2(b) (without giving effect to any “Material Adverse Effect” or other materiality qualification or any similar qualification contained in or incorporated
                                                                                                                              \ndirectly or indirectly in such representation, warranty, covenant or agreement and without giving effect to any update to the Target Disclosure Schedules delivered by Target to Acquiror prior to
                                                                                                                              \nClosing). In addition, Target shall indemnify and hold the Indemnified Parties harmless against (i) any amount payable out of the Escrow Fund pursuant to Section 9.3(b) in connection
                                                                                                                              \nwith excess Aggregate Transaction Expenses; (ii) any cash amounts or other value transfers paid or payable by Target in excess of $8,644,000 in connection with or as a result of the termination
                                                                                                                              \nof the 555 Market Street Lease Agreement; (iii) any Damages incurred following the Effective Time by any Indemnified Party in connection with or as a result of the pending
                                                                                                                              \nclaim by France Telecom against Target or a Subsidiary of Target identified on Schedule 3.20 of the Target Disclosure Schedule and (iv) to the extent that Target shall choose to enter
                                                                                                                              \ninto a Qualified Sublease prior to the Effective Time, any cash amounts or other value transfers paid or payable by Target in connection with or as a result of the Qualified Sublease (other than the
                                                                                                                              \nremitting to the Landlord of a portion of any net profits realized by Target in connection with the subleasing arrangement pursuant to the terms of the 555 Market Street Lease Agreement) and any
                                                                                                                              \nDamages incurred following the Effective Time through the Escrow Period by any Indemnified Party in connection with the Qualified Sublease. Acquiror, Target and Sub acknowledge and agree, and the
                                                                                                                              \nFormer Target Shareholders, by their adoption of this Agreement, agree that notwithstanding anything to the contrary contained in this Agreement or any other Transaction Document, such indemnification
                                                                                                                              \nunder this Article X shall be the sole and exclusive remedy for any such claim of breach by Target and with respect to those matters noted in the immediately preceding sentence, except in those
                                                                                                                              \ncases involving fraud or intentional breach on the part of Target. <\/font><\/p>\n
                                                                                                                                  Section 10.2  Escrow
                                                                                                                              \nFund<\/u>. As security and the sole and exclusive recourse for the indemnities in Section 10.1 and the
                                                                                                                              \nreimbursement obligations contemplated by Section 9.3(b), as soon as practicable after the Effective Time, the Escrow Shares shall be deposited with U.S. Bank Trust, National Association (or
                                                                                                                              \nsuch other institution selected by Acquiror with the reasonable consent of Target) as escrow agent (the “<\/font>Escrow Agent<\/b><\/font>“), such deposit to constitute the
                                                                                                                              \nEscrow Fund (the <\/font>“Escrow Fund”<\/b><\/font>) and to be governed by the terms set forth in this Article X and in the Escrow Agreement. <\/font><\/p>\n
                                                                                                                                  Section 10.3  Damage
                                                                                                                              \nThreshold<\/u>. Notwithstanding the foregoing, the Former Target Stockholders shall have no liability under
                                                                                                                              \nSection 10.1 and Acquiror may not receive any shares from the Escrow Fund unless and until an Officer’s Certificate or Certificates (as defined in Section 10.5 below) for an aggregate
                                                                                                                              \namount of Acquiror’s Damages in excess of $200,000 has been delivered to the Stockholders’ Agents and to the Escrow Agent; provided<\/u>, however<\/u>,
                                                                                                                              \nthat after an Officer’s Certificate or Certificates for an aggregate of $200,000 in Damages has been delivered, Acquiror shall be entitled to receive Escrow Shares equal in value to the full amount of
                                                                                                                              \nDamages identified in such Officer’s Certificate or Certificates; and provided<\/u> further<\/u>, however<\/u>, that $200,000
                                                                                                                              \nthreshold amount contemplated by this Section 10.3 shall not be applicable <\/font><\/p>\n
                                                                                                                              37<\/font><\/p>\n
                                                                                                                              \n

                                                                                                                              \nto claims made against the Escrow Fund pursuant to clauses (i), (ii) or (iv) of Section 10.1 above, which claims shall be subject to indemnification and reimbursement on a first
                                                                                                                              \ndollar basis, but shall be applicable to claims made pursuant to clause (iii) of Section 10.1 above. <\/font><\/p>\n
                                                                                                                                  Section 10.4  Escrow
                                                                                                                              \nPeriods<\/u>. The Escrow Fund shall terminate upon the first anniversary date of the Closing Date (the period from
                                                                                                                              \nthe Closing Date to the first anniversary of the Closing Date referred to as the <\/font>“Escrow Period<\/b><\/font>“), provided, however, that the number of Escrow Shares,
                                                                                                                              \nwhich, in the reasonable judgment of Acquiror, subject to the objection of the Stockholders’ Agents and the subsequent resolution of the matter in the manner provided in Section 10.8, are
                                                                                                                              \nnecessary to satisfy any unsatisfied
                                                                                                                              \nclaims specified in any Officer’s Certificate theretofore delivered to the Escrow Agent and the Stockholders’ Agents prior to termination of the Escrow Period with respect to Damages incurred or
                                                                                                                              \nlitigation pending prior to expiration of the Escrow Period, shall remain in the Escrow Fund until such claims have been finally resolved. <\/font><\/p>\n
                                                                                                                                  Section 10.5  Claims
                                                                                                                              \nUpon Escrow Fund<\/u>. Upon receipt by the Escrow Agent on or before the last day of the Escrow Period of a
                                                                                                                              \ncertificate signed by any appropriately authorized officer of Acquiror (an “<\/font>Officer’s Certificate<\/b><\/font>“): <\/font><\/p>\n
                                                                                                                                \n
                                                                                                                                  \n
                                                                                                                                       (i) Stating
                                                                                                                                  \nthe aggregate amount of Acquiror’s Damages or an estimate thereof, in each case to the extent known or determinable at such time; and <\/font><\/p>\n
                                                                                                                                      (ii) Specifying
                                                                                                                                  \nin reasonable detail the individual items of such Damages included in the amount so stated, the date each such item was paid or properly accrued or
                                                                                                                                  \narose, and the nature of the misrepresentation, breach or claim to which such item is related, the Escrow Agent shall, subject to the provisions of Sections 10.3 and 10.8 hereof and of the Escrow
                                                                                                                                  \nAgreement, deliver to Acquiror out of the Escrow Fund, as promptly as practicable, Escrow Shares having a value equal to such Damages all in accordance with the Escrow Agreement and
                                                                                                                                  \nSection 10.6 below. Amounts paid or distributed from the Escrow Fund shall be paid or distributed pro rata among the Holders (as defined in the Escrow Agreement) based upon their respective
                                                                                                                                  \npercentage interests therein at the time. <\/font><\/p>\n<\/ul>\n<\/ul>\n
                                                                                                                                      Section 10.6  Valuation<\/u>.
                                                                                                                                  \nFor the purpose of compensating Acquiror for its Damages pursuant to this Agreement, the value per share of
                                                                                                                                  \nthe Escrow Shares which shall be released to Acquiror in respect of a claim for Damages shall be the Average Stock Price. <\/font><\/p>\n
                                                                                                                                      Section 10.7  Objections
                                                                                                                                  \nto Claims<\/u>. At the time of delivery of any Officer’s Certificate to the Escrow Agent, a duplicate copy of
                                                                                                                                  \nsuch Officer’s Certificate shall be delivered to the Stockholders’ Agents (as defined in Section 10.9 below) and for a period of thirty (30) days after such delivery, the Escrow Agent
                                                                                                                                  \nshall make no delivery of Escrow Shares pursuant to Section 10.4 unless the Escrow Agent shall have received written authorization from the Stockholders’ Agents to make such delivery. After the
                                                                                                                                  \nexpiration of such thirty (30) day period, the Escrow Agent shall make delivery of the Escrow Shares in the Escrow Fund in accordance with Section 10.4,
                                                                                                                                  \nprovided<\/u> that no such delivery may be made if the Stockholders’ Agents shall object in a written statement to the claim made in the Officer’s Certificate, and such
                                                                                                                                  \nstatement shall have been delivered to the Escrow Agent and to Acquiror prior to the expiration of such thirty (30) day period. <\/font><\/p>\n
                                                                                                                                      Section 10.8  Resolution
                                                                                                                                  \nof Conflicts<\/u>. <\/font><\/p>\n
                                                                                                                                    \n
                                                                                                                                        (a) In
                                                                                                                                    \ncase the Stockholders’ Agents shall so object in writing to any claim or claims by Acquiror made in any Officer’s Certificate, Acquiror shall have thirty
                                                                                                                                    \n(30) days to respond in a written statement to the objection of the Stockholders’ Agents. If after such thirty (30) day period there remains a dispute as to any claims, the Stockholders’
                                                                                                                                    \nAgents and Acquiror shall attempt in good faith for thirty (30) days to agree upon the rights of the respective parties with respect to each of such claims. If the Stockholders’ Agents and
                                                                                                                                    \nAcquiror should so agree, a memorandum setting forth such agreement shall be prepared and signed by both parties and shall be furnished to the Escrow Agent. The Escrow Agent shall be entitled to rely
                                                                                                                                    \non any such memorandum and shall distribute the Escrow Shares from the Escrow Fund in accordance with the terms of the memorandum. <\/font><\/p>\n<\/ul>\n
                                                                                                                                    38<\/font><\/p>\n
                                                                                                                                    \n
                                                                                                                                      \n<\/ul>\n
                                                                                                                                        \n
                                                                                                                                            (b) If
                                                                                                                                        \nno such agreement can be reached after good faith negotiation, either Acquiror or the Stockholders’ Agents may, by written notice to the other, demand
                                                                                                                                        \narbitration of the matter unless the amount of the damage or loss is at issue in pending litigation with a third party, in which event arbitration shall not be commenced until such amount is
                                                                                                                                        \nascertained or both parties agree to arbitration; and in either such event the matter shall be settled by arbitration conducted by three arbitrators. Within fifteen (15) days after such written
                                                                                                                                        \nnotice is sent, Acquiror (on the one hand) and the Stockholders’ Agents (on the other hand) shall each select one arbitrator, and the two arbitrators so selected shall select a third arbitrator. The
                                                                                                                                        \ndecision of the arbitrators as to the validity and amount of any claim in such Officer’s Certificate shall be binding and conclusive upon the parties to this Agreement, and notwithstanding anything in
                                                                                                                                        \nSection 10.4, the Escrow Agent shall be entitled to act in accordance with such decision and make or withhold payments out of the Escrow Fund in accordance with such decision. <\/font><\/p>\n
                                                                                                                                            (c) Judgment
                                                                                                                                        \nupon any award rendered by the arbitrators may be entered in any court having jurisdiction. Any such arbitration shall be held in Santa Clara or San Mateo
                                                                                                                                        \nCounty, California under the commercial rules then in effect of the American Arbitration Association. The non-prevailing party to an arbitration shall pay its own expenses, the fees of
                                                                                                                                        \neach arbitrator, the administrative fee of the American Arbitration Association, and the expenses, including, without limitation, the reasonable attorneys’ fees and costs, incurred by the prevailing
                                                                                                                                        \nparty to the arbitration. <\/font><\/p>\n<\/ul>\n
                                                                                                                                            Section 10.9  Stockholders’
                                                                                                                                        \nAgents<\/u>. <\/font><\/p>\n
                                                                                                                                          \n
                                                                                                                                              (a) Gayle
                                                                                                                                          \nCrowe and Peter Mills shall be constituted and appointed as agents (the “<\/font>Stockholders’ Agents<\/b><\/font>“) for and on
                                                                                                                                          \nbehalf of the Former Target Stockholders to give and receive notices and communications, to authorize delivery to Acquiror of the Escrow Shares or other property from the Escrow Fund in satisfaction
                                                                                                                                          \nof claims by Acquiror, to object to such deliveries, to agree to, negotiate, enter into settlements and compromises of, and demand arbitration and comply with orders of courts and awards of
                                                                                                                                          \narbitrators with respect to such claims, and to take all actions necessary or appropriate in the judgment of the Stockholders’ Agents for the accomplishment of the foregoing. All actions of the
                                                                                                                                          \nStockholders’ Agents shall be taken jointly, not individually. Such agency may be changed by the holders of a majority in interest of the Escrow Shares from time to time upon not less than ten
                                                                                                                                          \n(10) days’ prior written notice to Acquiror. No bond shall be required of the Stockholders’ Agents, and the Stockholders’ Agents shall receive no compensation for services. Notices or
                                                                                                                                          \ncommunications to or from the Stockholders’ Agents shall constitute notice to or from each of the Former Target Stockholders. <\/font><\/p>\n
                                                                                                                                              (b) The
                                                                                                                                          \nStockholders’ Agents shall not be liable for any act done or omitted hereunder as Stockholders’ Agent while acting in good faith, and any act done or omitted
                                                                                                                                          \npursuant to the advice of counsel shall be conclusive evidence of such good faith. The Former Target Stockholders shall severally and pro rata, in accordance with their Pro Rata Portion, indemnify the
                                                                                                                                          \nStockholders’ Agents and hold them harmless against any loss, liability or expense incurred without gross negligence or bad faith on the part of the Stockholders’ Agents and arising out of or in
                                                                                                                                          \nconnection with the acceptance or administration of their duties hereunder under this Agreement or the Escrow Agreement. <\/font><\/p>\n
                                                                                                                                              (c) The
                                                                                                                                          \nStockholders’ Agents shall have reasonable access to information about Target and Acquiror and the reasonable assistance of Target’s and Acquiror’s officers and
                                                                                                                                          \nemployees for purposes of performing their duties and exercising their rights under this Article X, provided<\/u> that the Stockholders’ Agents shall treat
                                                                                                                                          \nconfidentially and not disclose any nonpublic information from or about Target or Acquiror to anyone (except on a need to know basis to individuals who agree to treat such information confidentially). <\/font><\/p>\n<\/ul>\n
                                                                                                                                              Section 10.10  Actions
                                                                                                                                          \nof the Stockholders’ Agents<\/u>. A decision, act, consent or instruction of the Stockholders’ Agents shall
                                                                                                                                          \nconstitute a decision of all of the Former Target Stockholders for whom shares of Acquiror Common Stock otherwise issuable to them are deposited in the Escrow Fund and shall be final, binding and
                                                                                                                                          \nconclusive upon each such Former Target Stockholder, and the Escrow Agent and Acquiror may rely upon any decision, act, consent or instruction of the Stockholders’ Agents as being the <\/font><\/p>\n
                                                                                                                                          39<\/font><\/p>\n
                                                                                                                                          \n

                                                                                                                                          \ndecision, act, consent or instruction of each and every such Former Target Stockholder. The Escrow Agent and Acquiror are hereby relieved from any liability to any person for any acts done by them in
                                                                                                                                          \naccordance with such decision, act, consent or instruction of the Stockholders’ Agents. <\/font><\/p>\n
                                                                                                                                              Section 10.11  Claims<\/u>.
                                                                                                                                          \nIn the event Acquiror becomes aware of a third-party claim which Acquiror believes may result in a demand
                                                                                                                                          \nagainst the Escrow Fund, Acquiror shall promptly notify the Stockholders’ Agents of such claim, and the Stockholders’ Agents and the Former Target Stockholders for whom shares of Acquiror Common Stock
                                                                                                                                          \notherwise issuable to them are deposited in the Escrow Fund shall be entitled, at their expense, to participate in any defense of such claim. Acquiror shall have the right in its sole discretion to
                                                                                                                                          \nsettle any such claim; provided<\/u>, however<\/u>, that Acquiror may not effect the settlement of any such claim without the consent of the
                                                                                                                                          \nStockholders’ Agents, which consent shall not be unreasonably withheld. In the event that the Stockholders’ Agents have consented to any such settlement, the Stockholders’ Agents shall have no power
                                                                                                                                          \nor authority to object to the amount of any claim by Acquiror against the Escrow Fund for indemnity with respect to such settlement in the amount agreed to. <\/font><\/p>\n
                                                                                                                                          ARTICLE
                                                                                                                                          \nXI <\/font><\/p>\n
                                                                                                                                          MISCELLANEOUS
                                                                                                                                          \n<\/font><\/p>\n
                                                                                                                                              Section 11.1  Survival
                                                                                                                                          \nof Representations and Covenants<\/u>. All representations, warranties, covenants and agreements of Target
                                                                                                                                          \ncontained in this Agreement shall survive the Closing and any investigation at any time made by or on behalf of Acquiror until the end of the Escrow Period. If Escrow Shares or other assets are
                                                                                                                                          \nretained in the Escrow Fund beyond expiration of the period specified in the Escrow Agreement, then (notwithstanding the expiration of such time period) the representation, warranty, covenant or
                                                                                                                                          \nagreement applicable to such claim shall survive until, but only for purposes of, the resolution of the claim to which such retained Escrow Shares or other assets relate. All representations,
                                                                                                                                          \nwarranties, covenants and agreements of Acquiror contained in this Agreement shall terminate as of the Effective Time, provided<\/u> that the covenants and agreements contained
                                                                                                                                          \nin Sections 6.5, 6.6, 9.2 and 9.3 shall survive the Closing and shall continue in full force and effect. <\/font><\/p>\n
                                                                                                                                              Section 11.2  Notices<\/u>.
                                                                                                                                          \nAll notices and other communications hereunder shall be in writing and shall be deemed given if delivered
                                                                                                                                          \npersonally, telecopied (which is confirmed) or two business days after being mailed by registered or certified mail (return receipt requested) to the parties at the following addresses (or at such
                                                                                                                                          \nother address for a party as shall be specified by like notice): <\/font><\/p>\n
                                                                                                                                            \n
                                                                                                                                                (a) if
                                                                                                                                            \nto Acquiror or Sub: <\/font><\/p>\n<\/ul>\n\n\n\n
                                                                                                                                             <\/font><\/th>\n <\/font><\/th>\n<\/tr>\n
                                                                                                                                             <\/p>\n
                                                                                                                                             <\/font><\/td>\n
                                                                                                                                            		 <\/p>\n
                                                                                                                                            Yahoo! Inc.
                                                                                                                                            \n3420 Central Expressway
                                                                                                                                            \nSanta Clara, CA 95051
                                                                                                                                            \nAttention: Senior Vice President, Corporate Development
                                                                                                                                            \nFax No: (408) 328-7939
                                                                                                                                            \nTelephone No: (408) 731-3378
                                                                                                                                            \nwith a copy at the same address to the attention of the General Counsel and
                                                                                                                                            \nSecretary and with a copy to:
                                                                                                                                            \nVenture Law Group
                                                                                                                                            \nA Professional Corporation
                                                                                                                                            \n2775 Sand Hill Road
                                                                                                                                            \nMenlo Park, California 94025
                                                                                                                                            \nAttention: Steven J. Tonsfeldt
                                                                                                                                            \nFax No: (650) 233-8386
                                                                                                                                            \nTelephone No: (650) 854-4488<\/font><\/td>\n<\/tr>\n<\/table>\n
                                                                                                                                            40<\/font><\/p>\n
                                                                                                                                            \n
                                                                                                                                              \n
                                                                                                                                                  (b) if
                                                                                                                                              \nto Target, to: <\/font><\/p>\n<\/ul>\n\n\n\n
                                                                                                                                               <\/font><\/th>\n <\/font><\/th>\n<\/tr>\n
                                                                                                                                               <\/p>\n
                                                                                                                                               <\/font><\/td>\n
                                                                                                                                              		 <\/p>\n
                                                                                                                                              eGroups, Inc.
                                                                                                                                              \n320 Brannan Street
                                                                                                                                              \nSan Francisco, CA 94107
                                                                                                                                              \nAttention: Chief Executive Officer
                                                                                                                                              \nFax No: (415) 546-2855
                                                                                                                                              \nTelephone No: (415) 546-2700
                                                                                                                                              \nwith a copy to:
                                                                                                                                              \nPerkins Coie LLP
                                                                                                                                              \n135 Commonwealth Drive
                                                                                                                                              \nMenlo Park, CA 94025
                                                                                                                                              \nAttention: Buddy Arnheim
                                                                                                                                              \nFax No: (650) 752-6050
                                                                                                                                              \nTelephone No: (650) 752-6000<\/font><\/td>\n<\/tr>\n<\/table>\n
                                                                                                                                                  Section 11.3  Interpretation<\/u>.
                                                                                                                                              \nWhen a reference is made in this Agreement to Sections, such reference shall be to a Section of this
                                                                                                                                              \nAgreement unless otherwise indicated. The table of contents and headings contained in this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation of
                                                                                                                                              \nthis Agreement. Whenever the words “<\/font>include<\/b><\/font>,” “<\/font>includes<\/b><\/font>” or
                                                                                                                                              \n“<\/font>including<\/b><\/font>”
                                                                                                                                              \nare used in this Agreement they shall be deemed to be followed by the words “<\/font>without limitation<\/b><\/font>.” Whenever the words “<\/font>to the
                                                                                                                                              \nknowledge of Target<\/b><\/font>” or “<\/font>known to Target<\/b><\/font>” or similar phrases are used in this Agreement, they mean when used in reference to
                                                                                                                                              \n(i) an individual, to the actual knowledge, after reasonable inquiry, of such individual or (ii) a party that is not an individual, to the actual knowledge, after reasonable inquiry, of
                                                                                                                                              \nthe directors, officers and employees of such party. All references to “<\/font>Target<\/b><\/font>” in Articles III, V and VII shall be deemed to be references to Target
                                                                                                                                              \nand its Subsidiaries taken together and all covenants of Target in this Agreement shall, to the extent appropriate, be interpreted to include the commitment on the part of Target to cause its
                                                                                                                                              \nSubsidiaries to perform or refrain from performing the specified action. <\/font><\/p>\n
                                                                                                                                                  Section 11.4  Counterparts<\/u>.
                                                                                                                                              \nThis Agreement may be executed in two or more counterparts, all of which shall be considered one and the
                                                                                                                                              \nsame agreement and shall become effective when two or more counterparts have been signed by each of the parties and delivered to the other parties, it being understood that all parties need not sign
                                                                                                                                              \nthe same counterpart. <\/font><\/p>\n
                                                                                                                                                  Section 11.5  Entire
                                                                                                                                              \nAgreement; No Third Party Beneficiaries<\/u>. This Agreement (including the documents and the instruments referred
                                                                                                                                              \nto herein), the Confidentiality Agreement, and the Transaction Documents (a) constitute the entire agreement and supersedes all prior agreements and understandings, both written and oral, among
                                                                                                                                              \nthe parties with respect to the subject matter hereof, and (b) are not intended to confer upon any person other than the parties hereto (including without limitation any Target employees) any
                                                                                                                                              \nrights or remedies hereunder. <\/font><\/p>\n
                                                                                                                                                  Section 11.6  Governing
                                                                                                                                              \nLaw; Jurisdiction<\/u>. This Agreement shall be governed and construed in accordance with the laws of the State
                                                                                                                                              \nof California without regard to any applicable conflicts of law; provided<\/u> that all matters related to the Merger and all matters of corporate governance of each party
                                                                                                                                              \nhereto shall be governed by the laws of the State of Delaware.. In any action between the parties arising out of or relating to this Agreement or any of the transactions contemplated by this
                                                                                                                                              \nAgreement: (a) each of the parties irrevocably and unconditionally consents and submits to the exclusive jurisdiction and venue of the state and federal courts located in the State of
                                                                                                                                              \nCalifornia; (b) if any such action is commenced in a state court, then, subject to applicable law, no party shall object to the removal of such action to any federal court located in the
                                                                                                                                              \nNorthern District of California; (c) each of the parties irrevocably waives the right to trial by jury; and (d) each of the parties irrevocably consents to service of process by first
                                                                                                                                              \nclass certified mail, return receipt requested, postage prepaid, to the address at which such party is to receive notice in accordance with Section 11.2. <\/font><\/p>\n
                                                                                                                                              41<\/font><\/p>\n
                                                                                                                                              \n

                                                                                                                                              \n    Section 11.7  Assignment<\/u>. Neither this Agreement nor any of the rights, interests or obligations hereunder shall be assigned by any
                                                                                                                                              \nof the parties hereto (whether by operation of law or otherwise) without the prior written consent of the other parties; provided, however, that Acquiror shall be permitted to assign
                                                                                                                                              \n(i) the rights and obligations of Sub hereunder to another wholly owned subsidiary of Acquiror, and (ii) its rights and obligations hereunder to any successor in interest to it in
                                                                                                                                              \nconnection with a transaction involving a change-in-control of Acquiror. Subject to the preceding sentence, this Agreement will be binding upon, inure to the benefit of and be
                                                                                                                                              \nenforceable by the parties and their respective successors and assigns. <\/font><\/p>\n
                                                                                                                                                  Section 11.8  Amendment<\/u>.
                                                                                                                                              \nThis Agreement may be amended by the parties hereto, at any time before or after approval of matters
                                                                                                                                              \npresented in connection with the Merger by the stockholders of Target, but after any such stockholder approval, no amendment shall be made which by law requires the further approval of stockholders
                                                                                                                                              \nwithout obtaining such further approval. This Agreement may not be amended except by an instrument in writing signed on behalf of each of the parties hereto. <\/font><\/p>\n
                                                                                                                                                  Section 11.9  Extension;
                                                                                                                                              \nWaiver<\/u>. At any time prior to the Effective Time, the parties hereto may, to the extent legally allowed,
                                                                                                                                              \n(i) extend the time for the performance of any of the obligations or the other acts of the other parties hereto, (ii) waive any inaccuracies in the representations or warranties
                                                                                                                                              \ncontained herein or in any document delivered pursuant hereto and (iii) waive compliance with any of the agreements or conditions contained herein. Any agreement on the part of a party hereto
                                                                                                                                              \nto any such extension or waiver shall be valid only if set forth in a written instrument signed on behalf of such party. <\/font><\/p>\n
                                                                                                                                                  Section 11.10  Specific
                                                                                                                                              \nPerformance<\/u>. The parties hereto agree that irreparable damage would occur in the event that any of the
                                                                                                                                              \nprovisions of this Agreement were not performed in accordance with their specific terms or were otherwise breached. It is accordingly agreed that the parties shall be entitled to injunctive relief to
                                                                                                                                              \nprevent breaches of this Agreement and to enforce specifically the terms and provisions hereof in any court of the United States or any state having jurisdiction, this being in addition to any other
                                                                                                                                              \nremedy to which they are entitled at law or in equity. <\/font><\/p>\n
                                                                                                                                                  Section 11.11  Severability<\/u>.
                                                                                                                                              \nIf any provision of this Agreement is held to be illegal, invalid or unenforceable under any present or
                                                                                                                                              \nfuture law or regulation, 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
                                                                                                                                              \nseverable, (b) this Agreement will be construed and enforced as if such illegal, invalid or unenforceable provision had never comprised a part hereof, (c) the remaining provisions of
                                                                                                                                              \nthis Agreement will remain in full force and effect and will not be affected by the illegal, invalid or unenforceable provision or by its severance from this Agreement and (d) in lieu of such
                                                                                                                                              \nillegal, invalid or unenforceable provision, there will be added automatically as a part of this Agreement a legal, valid and enforceable provision as similar in terms to such illegal, invalid or
                                                                                                                                              \nunenforceable provision as may be possible. <\/font><\/p>\n
                                                                                                                                              [Signature Page Follows]<\/i><\/font><\/p>\n
                                                                                                                                              42<\/font><\/p>\n
                                                                                                                                              \n

                                                                                                                                              \n    IN WITNESS WHEREOF, Acquiror, Sub and Target have caused this Agreement and Plan of Merger to be signed by their respective officers thereunto duly authorized as of the date first
                                                                                                                                              \nwritten above. <\/font><\/p>\n\n\n\n\n\n\n\n\n\n\n\n
                                                                                                                                               <\/font><\/th>\n <\/font><\/th>\n <\/font><\/th>\n <\/font><\/th>\n <\/font><\/th>\n<\/tr>\n
                                                                                                                                               <\/font><\/td>\n <\/font><\/td>\nYAHOO! INC.<\/b><\/font><\/td>\n<\/tr>\n
                                                                                                                                               
                                                                                                                                              \n <\/font><\/td>\n                                                                                                                                              		 
                                                                                                                                               <\/font><\/td>\n                                                                                                                                              		 
                                                                                                                                              \nBy:<\/font><\/td>\n                                                                                                                                              		 
                                                                                                                                               <\/font><\/td>\n                                                                                                                                              		 
                                                                                                                                              \n\/s\/ Jeff Mallett<\/font><\/p>\n
                                                                                                                                              <\/td>\n<\/tr>\n
                                                                                                                                               <\/font><\/td>\n <\/font><\/td>\nTitle:<\/font><\/td>\n <\/font><\/td>\nPresident & Chief Operating Officer<\/font><\/p>\n
                                                                                                                                              <\/td>\n<\/tr>\n
                                                                                                                                               
                                                                                                                                              \n <\/font><\/td>\n                                                                                                                                              		 
                                                                                                                                               <\/font><\/td>\n                                                                                                                                              		 
                                                                                                                                              <\/font> HERMES ACQUISITION CORPORATION<\/b><\/font><\/td>\n<\/tr>\n
                                                                                                                                               
                                                                                                                                              \n <\/font><\/td>\n                                                                                                                                              		 
                                                                                                                                               <\/font><\/td>\n                                                                                                                                              		 
                                                                                                                                              \nBy:<\/font><\/td>\n                                                                                                                                              		 
                                                                                                                                               <\/font><\/td>\n                                                                                                                                              		 
                                                                                                                                              \n\/s\/ Jeff Mallett<\/font><\/p>\n
                                                                                                                                              <\/td>\n<\/tr>\n
                                                                                                                                               <\/font><\/td>\n <\/font><\/td>\nTitle:<\/font><\/td>\n <\/font><\/td>\nPresident<\/font><\/p>\n
                                                                                                                                              <\/td>\n<\/tr>\n
                                                                                                                                               
                                                                                                                                              \n <\/font><\/td>\n                                                                                                                                              		 
                                                                                                                                               <\/font><\/td>\n                                                                                                                                              		 
                                                                                                                                              <\/font> EGROUPS, INC.<\/b><\/font><\/td>\n<\/tr>\n
                                                                                                                                               
                                                                                                                                              \n <\/font><\/td>\n                                                                                                                                              		 
                                                                                                                                               <\/font><\/td>\n                                                                                                                                              		 
                                                                                                                                              \nBy:<\/font><\/td>\n                                                                                                                                              		 
                                                                                                                                               <\/font><\/td>\n                                                                                                                                              		 
                                                                                                                                              \n\/s\/ Michael Klein<\/font><\/p>\n
                                                                                                                                              <\/td>\n<\/tr>\n
                                                                                                                                               <\/font><\/td>\n <\/font><\/td>\nTitle:<\/font><\/td>\n <\/font><\/td>\nPresident and Chief Executive Officer<\/font><\/p>\n
                                                                                                                                              <\/td>\n<\/tr>\n<\/table>\n
                                                                                                                                              43<\/font><\/p>\n","protected":false},"template":"","meta":{"_acf_changed":false,"_stopmodifiedupdate":true,"_modified_date":"","_cloudinary_featured_overwrite":false},"corporate_contracts_companies":[9377],"corporate_contracts_industries":[9510],"corporate_contracts_types":[9622,9626],"class_list":["post-43160","corporate_contracts","type-corporate_contracts","status-publish","hentry","corporate_contracts_companies-yahoo-inc","corporate_contracts_industries-technology__programming","corporate_contracts_types-planning","corporate_contracts_types-planning__merger"],"acf":[],"_links":{"self":[{"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/corporate_contracts\/43160","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/corporate_contracts"}],"about":[{"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/types\/corporate_contracts"}],"wp:attachment":[{"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/media?parent=43160"}],"wp:term":[{"taxonomy":"corporate_contracts_companies","embeddable":true,"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/corporate_contracts_companies?post=43160"},{"taxonomy":"corporate_contracts_industries","embeddable":true,"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/corporate_contracts_industries?post=43160"},{"taxonomy":"corporate_contracts_types","embeddable":true,"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/corporate_contracts_types?post=43160"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}