Google Inc. et al v. Egger et al

Filing 127

Declaration of Thomas B. Walsh, IV in Support of 124 Memorandum in Opposition to Motion to Dismiss - NUMBER TWO filed byGoogle Inc.. (Attachments: # 1 Exhibit A, # 2 Exhibit B, Part 1, # 3 Exhibit B, Part 2, # 4 Exhibit B, Part 3, # 5 Exhibit B, Part 4, # 6 Exhibit B, Part 5, # 7 Exhibit B, Part 6, # 8 Exhibit C - FILED UNDER SEAL, # 9 Exhibit D, Part 1, # 10 Exhibit D, Part 2, # 11 Exhibit D, Part 3, # 12 Exhibit D, Part 4, # 13 Exhibit D, Part 5, # 14 Exhibit E - FILED UNDER SEAL, # 15 Exhibit F - FILED UNDER SEAL, # 16 Exhibit G, # 17 Exhibit H, # 18 Exhibit I - FILED UNDER SEAL, # 19 Exhibit J - FILED UNDER SEAL, # 20 Exhibit K - FILED UNDER SEAL, # 21 Exhibit L - FILED UNDER SEAL, # 22 Exhibit M - FILED UNDER SEAL, # 23 Exhibit N, # 24 Exhibit O)(Related document(s) 124 ) (Walsh, Thomas) (Filed on 7/24/2009)

Google Inc. et al v. Egger et al

Doc. 127 Att. 9

Case5:08-cv-03172-RMW Document127-10

Filed07/24/09 Page1 of 44

EXHIBIT D PART 2

Dockets.Justia.com

Case e5:08-cv-03171 --CEW Document127-10 FiFiled07/24/09 Page2 of 44 4 led 12/15/2008 Page 1 of Cas 2:07-cv-0051 2 RM Document 118-8

IN THE UNITED STATES DISTRICT COURT FOR THE EASTERN DISTRICT OF TEXAS MARSHALL DIVISION SOFTWARE RIGHTS ARCHIVE, LLC § § Plaintiff, § §
v. § §

Civil Action No. 2:07-cv-511 (CE)

GOOGLE INC., YAHOO! INC., § IAC SEARCH & MEDIA, INC., AOL LLC, § and LYCOS, INC. § § Defendants. §

JURY TRIAL DEMANDED

THIRD DECLARATION OF JEFFREY FRANKLIN AlT 1, Jeffrey Franklin Ait, hereby make the foliowing declaration under penalty of perjury. All facts set forth herein are true and eorrect, and 1 make this declaration based upon my personal knowledge and upon review of corporate records. 1. 1 was the Chief Executive Officer of the debtor Site Technologies, Inc. ("Site

Tech," and fonnerly known as "DeltaPoint, Inc.") and the debtor's subsidiary Site/technologies/inc ("Site/Tech") at the time of Site Tecb' s bankruptcy. 1 was also the official "Responsible Person" under the bankruptcy plan and was charged with implementing tbe plan and creating the debtor' s schedules. 2. On September 16, 1998, Site Tech sold and assigned, among other things, U.S.

Patent No. 5,544,352, and related applications and future patents (which include U.S. Patent Nos. 5,832,494 and 6,233,571) (collectively, "the Patents") to Daniel Egger. Daniel Egger paid $ 100,000 for the Patents. Prior to the barikruptcy, Site Tech and Site/Tech considered the sale and transfer of the patents to Daniel Egger as valid, consummated, and complete, and reflected this in numerous SEC statements and other corporate records. Site Tech and Site/Tech

EXHIBIT 6
1

Case e5:08-cv-03171 --CEW Document127-10 FiFiled07/24/09 Page3 of 44 4 led 12/15/2008 Page 2 of Cas 2:07-cv-0051 2 RM Document 118-8

maintained this view throughout the bankruptey and disclosed the transfers in several bankruptcy fihings. First, we explicitly identified the sale and transfer. of the Patents to Daniel Egger in both Disclosure Statements, which described the effect of the debtor's plan for purposes of approval from the creditors. See Debtor's First Amended Disclosure Statement at ¶ 5.5, attached as Exhibit A ("In September 1998, the Company also sold its V-Search technology and related patents."). Second, we listed the September 1998 transfer of the Patents to Daniel Egger as a transfer of the debtor' s property within a year in the debtor' s Statement of Financial Affairs. See Statement of Financial Affairs at ¶ 10 (Other Transfers), attached as Exhibit B. Finaily, Site Tech and Site/Tech deliberately excluded the Patents in the debtor's property schedules deseribing intellectual property assets held by the debtor. See Schedule B at ¶ 21 (listing patents, eopyrights, and other intellectual property), attached as Exhibit C. We did this because we believed that the Patents had been the subject of a valid transfer to Daniel Egger in September 1998 and thus were not owned by Site Tech at the time it filed for bankruptcy. We also did not amend the debtor's schedules to list the Patents after Site Tech and Site/Tech merged in December 2000, because Site Tech and Site/Tech did not believe that the Patents were held by the subsidiary at the time of the merger or became Site Tech' s property as a result of the merger. Rather, both Site Teeh and Site/Tech had conceded that the Patents were transferred to Daniel Egger in September 1998. The purpose of listing this transfer, among other things, was to indicate to all interested parties in the baiikruptcy that the Patents were transferred to Daniel Egger prior to the bankruptcy and thereby give such parties an opportunity to challenge the validity of the assignment and recover the Patents for the benefit of the Debtor's estate. Such disclosures confirmed that, absent the successful prosecution of an action to recover the Patents, the Patents would not be available for distribution to creditors and other stakeholders.

2

Case e5:08-cv-03171 --CEW Document127-10 FiFiled07/24/09 Page4 of 44 4 led 12/15/2008 Page 3 of Cas 2:07-cv-0051 2 RM Document 118-8

3.

On April 25, 2000, Site Tech filed its First Amended Plan of Reorganization,

attached as Exhibit D. Site Tech also filed its First Amended Disclosure Statement for the plan on that same clate. The bankruptcy court entered an order approving the disclosure statement on April 26, 2000. The order approving the disclosure statement allowed Site Tech to mail the amended plan and disclosure statement to its creditors and interest holders in order to solicit their support for the plan. Foliowing a hearing, the bankruptey court entered its Order Confirming First Amended PIan of Reorganization on June 15, 2000, attached as Exhibit E. Paragraphs B and C of the confrmation order make explicit reference to the amended disclosure statement and the court's approval thereof. 4. My understanding is that the defendants in this matter assert that the Patents and

other former assets of Site/Tech were never assets of Site Tech because the doeumentation was insufficient to transfer these assets to Site Tech. Both Site Tech and Site/Tech long considered the former assets of Site/Tech to have been transferred to Site Tech in connection with Site Tech's acquisition of Site/Tech in July 1997. For that reason, we listed the former assets of Site/Tech as the assets of Site Tech in the debtor's schedules. For example, the Site Sweeper product and technology that was a former asset of Site/Tech was listed in paragraph 21 of Schedule B as belonging to Site Tech. It was sold by Site Tech in accordance with the plan and represented a substantial part ofthe consideration that resulted in a one hundred percent recovery for creditors and a substantial retum of funds for the former shareholders of Site Tech. 5. Had Site Tech and Site/Tech not conceded the validity of the transfers of assets

from Site/Tech to Site Tech or the validity of the transfer to Daniel Egger, it would have threatened the overall success of the bankruptcy in paying off the ereditors, approving and completing the plan, and obtaining a retum for Site Tech's shareholders. We would have been

3

Case e5:08-cv-03171 --CEW Document127-10 FiFiled07/24/09 Page5 of 44 4 led 12/15/2008 Page 4 of Cas 2:07-cv-0051 2 RM Document 118-8

involved in costly litigation with Daniel Egger, which 1 believe would not have been successful given that we had represented to Egger that we were properly assigning him the patents and given that he paid $ 100,000 for them. Tbis would have depleted the resources of the estate for a losing effort. Even if we were successful in recovering the Patents, Daniel Egger would have had a substantial claim in the bankruptcy for the Patents. This would have certainly threatened the recovery we obtained for the shareholders, who would have been subordinate to Daniel Egger, and this also would have impacted whether the creditors would have been fully paid. Similarly, the failure to recognize the prior transfer of assets from Site/Tech to Site Tech could have potentially impacted the plan's sale of assets in the Star Base acquisition, which provided substantial benefits to all the stakeholders in the bankruptcy. 1 declare under penalty of perjury under the laws of the United States of America that the foregoing is true and correct.

Executedon , De 'ib p r Myrtle Beach, South Carolina

,2008

4

Case e5:08-cv-03172-RMW Document127-10 FiFiled07/24/09 Page6 of 44 3 led 12/15/2008 Page 1 of Cas 2:07-cv-0051 1-CE Document 118-9

Frrd4?

FORM 7. STATEMENT OF FINANCIALAFFAIRS
· UNITED STATES BANICRUPTCYCOURT NORTR& DISTRIOTQE çM1TFORNm

··· -

-

InRD SITE

TEcHMOWGIES. INC.

''· . J Debtor c818,e
·
'b?c Q..2: '-,

c.99-5O736-ir(ZCZ

ThIe atatement 10 to be complst.d by every debtcr OpoUsee flHn Iht petltion may 1110 8 sIngIe atatement on wNch the lnfomatton 1- boUi ou2e$ 0 combtnet 11 tho oeuo 8 fllad unøer chapter 12 ar cllapter 13, a marrted debtor euat lurnlah inlcnmation 101 IotItspoiBBwMther cr not ajolnt petlUon isfIIed. wilesi tha spouaee we separlted eM a jolot pt*lon rnnotfued.

An lndlvk10al debtar engeged 10 buslneu as a sole proprletof p&tner temily iirmer or self-enqlloyed pfotaeelon4 sliauld pmvlda theInfoimatlon requestedon thIs statementconcernkig all euch acuvltlea aewell ea the Indlvldual'spereonalafleWs.
Queetlon$ 1 - 15 aro to be camplatad b mil debtors. Oubtora tilat are ar have heen in buSInele. a* detinell baIow,, 8100 muet coiilete Ouuaflons 10-21 11 th 8n5V01 to el%y qUOatIOfl 11 Na,ie. or Ths queslIofl 10 not applcsbl mk the bac

abuled Kans 11 eddltlonal space Is noeded for the aniwer to any ieatIon, usa and attach a soparate sheat pr gperly IdenWled

wlth tle 8889 name, ca$e nuniberWknowfl). 004 tho ruather of the queetlon.

DEFINI11ONS

tn bt,s810ea A debtor lo In businoas' lor the purpose 01 tWa fona 11 tbe debtor 10 a carporatlen or partnerehlp. An tndIvIdUaI dabtor Jo In buslnesa tor tfle pwpo8e 01 thls form 1 the debtor Is or twa bean wlthin the two ye.rs taimodlately

preaedlng the hOng 01 thIO Dankruptcy oaSO any 01 tho loliowIng an olticer dlrector lnasiagjng executlVe or person in oontrol 018 corporatton; a partnor, othar than a IIaIted partner, of apadnarStIp; 88010 proprlotor ar sa1Tff00yed. frwkle? The tere Inaider Inoludes but Is not ItmIted to relatiVes 01 the debiof; general partnera or tlie d.btor and thee reIattVe corparatloflaot whlch ttia dobtor 18 an olflcer diractor ar a person In control ofScera dlrectore, and anypar800 In control af a corporata debtar anil Ihalr relativea alfIIIatee 01 th debtor anci Inaiders 01 suob afflflataw- any managing agent 01 thi debtor

11 tJ.&C. 1O1(30L

1. Inaom.lrcn ..p!oym.nt None

oT operatlanotbUelflea.

D

Stato the groas Omowit ot Incomo tM. debtor 1101 recelVed irom enpto yment trade, er proftwolon. w- Iran opafltton 01010 dsbtor 8 buslnsaafroln the baginning 01 thta calendar yeer to the deto thlacaue was ouaanced.8teteIIaO Wegrosa amountsr.celved durtn9 010 twoyaara bmlOdIateIyPrOCOdIflg thIs calendsr year (A debtar that malntalni orhepntalntniaed, finanolal recsrds 00 tlw boale 01 a flscul rather than 8 calefldar yesr may repait 1 lscaI yaar Incoiue Idenlily the ttoglnnlng and anding dates 0? the debtor's fIecsI year) 118 Jaint petltlon 18 hlIed, steta lncoae lor each epouae separately (MarrIed dabtura tIting under chuptor 120r chapter 13 muat state Inoome 01 both epulisal wtwther cr not a Jaint petition lo flled unleesthe apouaea are aepereted and aJotnt petition 18 nottl!etL) AMOIJNT :1.999 -0-

SOURCE (If mw0 thlfl one)

1998 1997

$305,747 $1,827,000

ORIGLNAL,
EXHIBIT 7
CONFIDENTIAL

BNK_0000001

Case e5:08-cv-03171 --CEW Document127-10 FiFiled07/24/09 Page7 of 44 3 led 12/15/2008 Page 2 of Cas 2:07-cv-0051 2 RM Document 118-9

Z m.Q.. cSh.r*an fram_pIu* aropiVa8on 01bus ilcn. faescn, ar .ii*1ii Silia ths amoUnt 01 ncc. racavso D tfts dSSSV otlw thM froa eIapSoymoUS. tra gsbtora buslnau a1ng tImo ys 55mUdI01*Iy precSdIflg ths comuncUmsnt 0? t55a 0555. 5555 11 $ josnt petttlo* 55 flhsd, itile Inoolis far esch ouu. ss.ratsty. (Mstrtd dsbtcrl UItng UIKIV chu(st l2orch.tw 13 *5015*015 55coss tcr ascii 000uaa wbsthar 0, 5501 a Jaint patUnon 551150?. unhssS *550 ioU55 N psra*d and a jaS* pemton IlflOtfISSd.)
01 ffis

AMOUNT 2.998 2997

$ 80,000 $1,271,000

SOURCE SaLe of patent and V-searoh t.ahnoiogy Sais of De1taGrab product line

a ·ay.ntw..1Lm
aQQfIQ5P.th*fl$0O050 · -- $. Liet sdp*)uIlt$0fl Ioan IMti55sI*pWCIl$a ntgoodi or avtcs oUdoth& Obt* (5555104 dsUtars (I1U WidW -w cmdJtor. da 1tNnI0 $I*555101U1y pr.C.dklØ Usa noassncaslnt 01*55150555. piullufi IaflIsd,1IM..Sths chsptur l2or cl*s 1$sst Inctude piyamitabyaIttIUV cr bothapousIa ,hsU,Ur cr not a lokit potjsas i sajaratud .nd $ JatntpOUtlOfl Is nctfIIst)

CF twIEAtimADCRE$S OFcREDffOR PAYMENTS See Attach.4

AMOUNT PAID

AMCUNT

Nons 55. Liot *1 psyssanti mads wittstn ane y Iwts$stely pr.c.dlng *555 coassnciiwflt af usa caas *00? Ni Usa blnsf* 01 po)s*5%tI by etthur crsaitors also 0?e 0? 55f$ insider*. (MstrIad 5551013 ftUfl unde? clsapt.r 120? ctiaptat 13 m*ist IflcIudi J * ar both $ ou$eswflatI55r or not $ Jolntp.t*$ofl Is ?Iles*. unntu ths apouaaa$r as5xsrstad .0453 055peutton Isn01 555543

NAMEMIO ADDRESS OP CRED1TCR OAE OF PAYMENT M'ID RELATIONSHP 10 DESTOR Sae Attaolisd

AMOUNT PAC

AMOUNT STIU. C1N(

4. Sulbo wd&J.aisJs.eJ. wooasSugS. 05.cUtIOflI.5*flIS55-lflhI asdM*aciwita 553 $ party 55*55*0055 YSUI55SSdSIt$IY Non. 5. 5.501 al ,utt$ 504 a4aln&str$tIVa p acisdtn$ to alIeh 15*550*01550? pracsdti th.fiIlng01 usa ba tcycu5.0err55ddIbt0?$t1*Ifld1?CNi l2orchuptV 12*55* Ino*m WoralOon D wfluthur 0? 55011 30Int p01115005511554 unisaa Usa 35ou55$ 5,5 sspar*tsd and 1

coscwiing cith.r 0,00*5535011535 ps*lt55n*0not 111143

SrAIUS CR OURTOR NCY DI$PCStTN N LOCAflON NA1URE 0FPROcEWUIG riled 12/98 Santa cruz ccU.Cticfl $erriil Corp. v. Site Superior Court TechucloiS$ CV 23482.9 C*PI1ON OF SUIT

CONPIDENTIAL

BNK_0000002

Case e5:08-cv-03171 --CEW Document127-10 FiFiled07/24/09 Page8 of 44 3 led 12/15/2008 Page 3 of Cas 2:07-cv-0051 2 RM Document 118-9

1Q 0th.rWru Nons

()

& Lilt al othur rcpurty othuf tttan psop.vty trwsfarr.4 18 thl ardinary ccuiis 01 bu$lnø$ 01 ftnwelai afI*$ 01 thS thbtof. trenatstrad e111101 abIoIutS 01 0* iscUilty wltNn cns y.ar lmMdl*tSIY pr.c.dnQ ths cooesoemsnt af tOle ous. (MSMSd dt01$ ftflrg undsf ChUPI& 12 clioptir 13 r*ast Inaki WuiWers by sItIat ar batfl ipouDi i.hethlr av not * bit pMttlon 1* 1110d unIeS thl apaussa irs sups.t.d snd .bIlit pstitIon 1* notIlilti

NAtANDADDRE$$ OFTRANSFEREL RELA11ONSPIIPTO CE1OR vir Tsc)m3.ogy xeup Inc. 314 Hacianda Av.nUa 95008 DODiS1 sver

cR1CPER ThWA N4DVAUJE REEJVED LTE ,.3/28/3$ $U0, 000 $.c*xtty i*tSXSSt in &] asstI

1/29/99 $ 10000

2027 14. Ctub 14liM. Durhsm, NC 27705
11. Na. D cmts

9/13/98 580,000 V-Saroh Tiobnology

Ut .11 linanolal acaountI and Instlum.lfl$ I%SkI in 1411 · nacs of ths dsbtof 01 10? ths bInsIIt 01 141* de*W i11100 wate cona, sotd. 01 oth01ti** tranalaIVed sithin an. yslV Imnadl*tlIy pfscadlng 114 aoananc.Wt 04 tht* 00*0. Inakido chscklflg. ,stvInØe. 00 athus fInsitOl*1 aoaount*. CIrtIIICIt.S 01 dspe 00 otfl01 10ath0111tL sfl&S$ end sh&e accodflt$ MO In buN1 cledit UnI0n p101lCfl fund aoo011$tlV* aasoCIatIOflS. brØku0000 hOUSOS and athur 14oncIsI hIIIIMIOfl& (kWrlad dsbtur* fIIIfl5 undsv cMpter 12 01 In**fl1151%t$ hsld by 00 101 ulthIO or bath 00 ahu4tur 13 must Inekido lnform*tloa concernlng accot11t* mass olisthsr ar not * Jaint patition 1* llIsd. 1110*1 141* SØOU*S* uo· 0.00(01.4 01111 $ Jaint piuulon 1 notUlad3 VPEANDNUPkER OFOUHtAND AMOUNT OP 19N&LBAUI4CE 4IMOUNIAtbO aTEOSM.E 0f CLCS*1G

PIAMEANDADDRESS OF lplsnnrnoN See Attacbsd

it $01.4IOt bSOwa asati, 01 1.1*4 sach naf. d.pollt 01 other 14* ar dspoIIt00y in 0011*11 141* daltOr hil 00 11*11 100*811IsI. otP1*r v*Iu$bIss clt1*n ams y.ur Iin*sdI$taly prcIdIIlg 1410 00111*11010101* 01 110* 00*5. (11t10d 0xS* 00 dlpoIItCtIS$ 04 *111100 01 bath dultOrS ftilnQ und01 chaptst 12 01 abiptaf 13 11151 IncII*10 8 not a Jaint p51111011 5 1110* unIUs 151 .00110* am uprated and a 10151 spcuu* wl*th*t af pstitiQnh$ not 1111*.) NN.E ANDDQRE32 0P SNIKOR OHERDEPO8IrORY NAMESANOAOORES$ES aPThOse WITh CES$ 1'OlHE BOX OR CEPO!flCIW OEScRIPflON CF CHTENTS CATC% TPAN$PER OR $URFt. IPNW

o}1aso1M as SroWsfbatflnc10g atatsnisntw flhsdapprOlthnatsly 22 d. aftus dlsbwrsüll Mds voW*lia* wiib reapsat to Iti Initisi aMoco 1*1* booaflds 5upute 11th. O,btarwas Lesotvuntbt Jwaa.y 1999.)

CONFIDENTLAL

BNK_0000005

Case se5:08-cv-03172-RMW Document127-10 FiFiled07/24/09 Page9 of 44 26 led 12/15/2008 Page 1 of Ca 2:07-cv-00511-CE Document 118-10 /
2
2

1 1 CRA1O M. PRM (71a2Orr

1

Valo A1*a,( (6$O) 852OCO
5

PILth
APP Z 5 zoOs
KEENAN . CrtO!QV Cour' lJnjt,d$tate s afl r UP tCY

Attorneys for Debtos
6. 7.

San Jose cVI

81 9 I0 11 12 13 lnre: Site Technologies, Inq., ciba DeftaPoznt, Inc.,

UNt1rEV S1AUS BAN}CR1M TCY OUR1 NORTHERN DI TRICr 01' CAUORN1A SAN JOSE DMS1ON CaseNo. 99'501364RO41 Ciijterfl Vebtor.

14

EZN No.: 11.0212760 15

4
-

16
17 18 19 20 21

.*l ij 1

--

(*1.1

·

22 23 24 25 26 27 28

fW

flPY

EXHIBITA
EXHIBIT8

2:0 08-cv- 511- -RMW Document127-10 FFiled07/24/09 Page10 2 of 26 iled 12/15/2008 Page of 44 Case5:7-cv-003172CE Document 118-10 1 2 3 4 5 6 1 8 9 10 11 1 4. 1. 2. 3.

*x*jI1
Page. TNTRODVCTION...............................1 DEFfNTIONS............................................................2 ESIGAT1ON OFcLASSBS OP LA1MS AND fERSTS .....................9 3.1 3.2 3.3 3.4 3.3 cIassl ............................................................9 Ciass2 ............................................................9 Ciass3 ............................................................. aass4 ............................................................ CiassS ............................................................9

TRATMENTOV UNcLASSI1W LMMS ................................ 10 4.1 4.2 Allowed Adrninistratve ciaims ........................................'. 10 TàxClaims ........................................................10

: 14 15 16 17

5. 6.

CLASSES OF CLAIMS AND ThRESTS NOT IMPAIRFD IJNDER IME PLAN ......10 OP CL4SSESQP cu S AN1r. INfERESTS THATARE irWAIRi . UNDER TRE PLAN ...................................10 &1 6.2 6.3 6.4 6.5 ciass1thirnsPnorityaaim3 .......................................·. 11 Ciass 2 Claim (Savoii Technology Gioup, Inc.) .............................11 Class 3 Clainis (tinsecured Creditors) ................................... 11 aass 4 tnterests (ornmon Stocky ......................................11 Class 5 InterestsC.ptions dWauantt) ...................................12 ..........................12 FOR IMPU fENIATION OP TR PIAN Liquidation ?roceed ; Rcmaining Assets . .............. 1.

1 '1.
1.1

7.2
1.3

Disburst oøunds................................................12 Responsible Pson ..................................................1. pitd Procedure tox Comprose oWonUover Sate or Abandonment....... 13 corporate Forrnalities................................................14 conipensation and Reixnbutsement ofProfessionals ......................... 14

1.4
1.5

7.6

PLA$ OUGA2A -1.

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11 2 3 4

1.? Amendrnent cf Charter to ?,oliibit the Issnaucc ofNon*Vodng Euty Securities .......................................15

7.8 7 .9

Unclairned Property .................................................

8. 5 8.1 6 8.2

Dissolutlon ofcoperation ............................................ 15 EXFWTORY eONTRcTS AI4D U EPE LEASES ....................... 15 Msumption of Executory Cont,acts ......................................
15

Rejecon ofExccutory contracts and Unexpired Leases ......................15 Treacnt ofExecuto Contracts and Unexpied Leases .....................16
R*ction C1arns ...................................................16

7 8
9

8.3 8.4

pioCS OP CLAt EDENcE OF EQIJITY SECVKr; OBJEcTIONS .........16

10 11 12 13

9.1

lime fbr Piling Proofs ofClairn .........................................

16

9.2 9.3 9.4

Evidence of clahn 0, Intetest ............................................16 Tiinc for riling Objectiofls ..............................................11 isputcd aaims andtlsputed interests; Reserve Accounts ....................17

10; RFSERVATION O POWERS ..............................................17

III 4:
16 17
a4g r'

ii.

w4ivu ................................................................

18

18 19 20 21 22 23
24 25 26

18 12. RBQ1JETFORCOAT1ON .......................................... ............................................. 18 13. FONOYJURISD1CTION 14. EPET OF CONMTION ............................................. 19 14.1 BindingEect .................................................. . . .. 14.2 14.3 Vesting ofProperty ..................................................

19

19

15.

20 Discharge ............................................................ cHAflR 11 ?OSTcO)WflU:A1iON NAL DEcRE ............ 20 20 15.1 . Post4Coflnation Reports ............................................. 20 15.2 Sezice ofRepoxt$ .................................................... 15.3

21 23

21 16. MXScLLANEVS ...................................................... ............. 21 16.1 Eeadings ................................. 21 16.2 SingularfP!urai ........................................................
DRPUOOMAflO

2:07-cv-0051 1 -RM Document 118-10 iled 12/15/2008 Page of 44 Case5:08-cv-03172-CE W Document127-10 FFiled07/24/09 Page12 4 of 26

16.3 1
2 3 4 5] 6 7 8 9 10 11

16.4 16.5

Gender ........................................................... RevocatiOflafldW'lthdfaWaJ ........................................... 21
Notices ............................................................21

iReservation ofRights ...................................................22 16.7 Computation ofTime Pcriods........................................... 22

1 iJi1i
16

r18 19 20 21 22 23 24 25 26 27 28

-i1i

2:07-cv-0 031 1 -RM Document 118-10 iled 12/15/2008 Page of 44 Case5:08-cv-051 72-CE W Document127-10 FFiled07/24/09 Page13 5 of 26 1 Site Tecbnologies, inc, a Califbmia coiporation ("Site'. the nDebtoru oi the Compariy")

Nplar N) puisuant to the piovsions ofchaptei 11 ofthe 2 prc!pOseS this I4aji of organilatiCn(tbe 3 4
5 6

Bankrpt Codc. On Vebvtiary2, 1999, tbebebtorfiled its Vo onunderChapter 11 ef

1.1

the Bankruçtcy Code. Chaptei 11 sets forth the rules and procedu*es under whicb flnancially distressed entities niay be reorganized or ftquidated pursuant to a plan of reozganization presented to crediton afld stockhoiders for con Ideration and ppTOVaI. Confirmation Ofthe Ptan
is the

7 8
9

10 11 12 13

cuirnination ofthat process. 12 The Ptan scis (orth a pioposal fb the sadstkction, dschatge and/or cance1iaton of all Claims against and interósts in the Deltor. WLIh the PIan, Creditors and Equity Security Hokiers
Will

recei e a Baliot for vo' g on the Plan and a DIsclosure Statexnentthat provides inforrnation

conceriig tbe Debtor and thc Ptan. The Disclosure Statement includes a sumniaxy of the Debtots

14 history, a surnmary of signiIcant events during the Cbapter 11 case, an estirnate ofwhat certain 15 Creditors and lnterest holders vilt recei'veunder the Ptan and a suminary ofthe procedure$ and

ijiit r

16 11 18

voting tequirernents necessary for confirrnation ofthe Plan. You shouid thoroughly.revieW both the Plan and the Disclosure Slateinent before deciding wbetiier you wiH acccpt 01 reject the PIaa
1.3 CREDITORSAND EQUITY SBCURITY IIOLDERS WISIHNG TO VOTE ON

RETURN IT NO LATER 19 THE PLAN SHOULD COMPLETE ThEBAUOT PROV DED MW 20 21 22 23 v 30 200070: Murráy.& Murray A Professional Corporation Attn: Jank. M. Murray, Esq. 3G30 Hansen Way, Suite 200 Palo Ako, California 94304-1009

17 MAY NOl' BE CONSU)ERED. 24 IF VOIIR BALLOT iS NOT RETIH.D BY MAY 3D, 2000. 25 BALUflS WHICH ARE RETVR 0 BV NOT PROPER Y 1cEc(mD WILL NOT BE

26 CONS1LERED BALLOTS WIHCH ARE E CUTED BIYF WHICØ FAIL TO 1NDICATE 2'? ElTiliR ACVLYTANCE CR RE.flCflcN OF 7111 PLAN WILL BE CONSIDERED AS 28 ACcEfl,G 7111 PLAN. -1.

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2

liic toiiowlrg tenns used in this Plan shall, unless ths context otherwise cteariy 3 requires, ba've ths rneanigs specified below, and such meanings shall be equally app1icab1 to 4 both the singular and phiral forsns of such tenns. 2.1 !Ajrnlfljstratjy , ClaIm" meanS a Claim for any cost or expen$e of 5
8

adrninistration ofa kiñd specifled in Section $03(b) of the Bankniptcy Code that is entitled to

without limitation, any actual 7 priority under Section 501(a)(1) èfthe Bankruptcy Code, meluding 8 n4 nccesSary costs and expense$ ofpreserving the Bankruptcy Estate incurrcd on or aiIer the

9 Vedtion Date ànd througb and inchiding theEffectwe Date ar&y eure amounts that must be paid

10 11

in conne-tU n with the assurnption of any exeeutory contract or unexpired lease ofthe t)ebtor

under section 365. of tho Bankruptcy Code, Bankiuptcy Vees and allowance of compensation for

§!

1 ;r IJ

12 legal or other services and reirnbuvsement of expenses under Sections 330 and 331 ofthe 13 Bankruçtcy Code 0' otberwise allowed by the Bankruptcy Cotnl. 2.2 "Mlowed Adrninistrative Uabn" rneans all or any port on of an 14 15 AdrninistratiVC Claixn that has either beea (1) ailowed by a PianI Ordei or(ii) has not been ordir ofthe Bankzuptcy Court. 16 objected to within the tirne period estabiished by the Plan or by an 2.3 "Aftowed Clahn" i eans a Claim (a) which isan Allowed Claim pursuant to 17 18 the tenns ofthe PIan; (b) with respect to wbicb a Proof ofClairn has beeu filed with the 19 Banknptcy Court within the tiine ordered by ibe Banktuptcy Couirt, or ifno tirne is ordered by 20 the Bankruptey Couit within the tirne prescnbed by the PIan, the Bankrvptcy Code, the tinie 21 Bankniptcy 1u1es oi by Local Iu1es and to which no objectionhas been tIIed within the 22
fixed by the PIan or the

23 Debto?s

Bankruptcy Cotut ( c) which bas been hstàd on Scbedule D,E or P ofthe SchedIcs flled with the Bnkniptcy Court pursuantto Section 521(1) ofthe Bankruptcy ISch u1esr*) and is not Iisted as

24 Code and Bankruptcy Rule i00'F(b), as may be amended (tite

25 disputed, contingent, unliquidated or unbwwn as to arnowfl; cr (d) which is allowed by a Final 26 OIdá of the Bankruptcy Court Except for a Claim whIcb is aitowed puranant to the terms oftbe 27 PLan, no Claim shall be considered an Allowed Ciaiin ifan ob$ectiofl to thc atlowance tiircofis

21 interpOSCdbythCDet0rot0thetpattYmnt5tWithmth
-2-

.bytheP1an orthe
OeBIO*'$PLANCVRIOROANAflO

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flankruptcy Cowt and such otjection has not been denied by a Rinal Order of the Bankruptcy 2 3
1

Conrt

2.4

Miowed Interest" means thc interest ofan Eqtüty Security Holdev (a) whieh

4 is an Allowed Inte,cst putsiant to the te*ms ofthePIan; (b) in respcct *0 wbicb a Ptoof of
5 6 7

Iátercst has been i11ed with the Bankn ptcy Court within thc time ordercd by the Bankruptcy
Court orifno tirne is ordered by the aankruptcy Cóurt, witbin the täne prescr'bed by the PIan,,
*0 whicb no objection bas (0) which bas been bsted

the Bankniptcy Code, the Bankruptcy Rules or by Local Rtzle& and

8 been filed within the tiine fixed by the Pian or the Bankruptcy Court or

9 on the ebt&s LisI of Equity Security Rolders liled with the Bankruptcy couit pwsuant *0 10 Bankruptcy Rute 1O07(X3), as may be arended (the "List of Equity Secuiity Eolder?), and 13. 11
r.
·1 s1

not listcd as disputed, contingent, unliquidatod or unknown as to ciass or arnount. Exeapt for an

1 frw
11 I·

12 Interest which is aRowed pursuant to the terms ofthe Plan, no !nterest shall be consideved an 13 Ailo'wed interest ifan objection to tbe altowance thereof 15 interposed by thc Debtor or other 14 party in intorestwithin the tinte flxed by thc PIan oi the Dankn ptcy Court and sucb objection 15 has not been dçnied by a Pinal Order ofthe Bankruptcy Couit Pursuant *0 Bankruptcy Rule 16 3021, only Aiiowed Class 4 Interests of [.quity Security Holders aofthe Dii ibutioiPate shaH
11

be entitled to receive a Distribution under ths Pian.
2.5 "Mlowed Secured Clain? rneans an Allowed Claim secured by a lien, secunty

[1.

18 19 20 21 22 23 24 25 26 27 28

intere* or other charge gsinst or interest in plopelty in which the Debtor has an interest or that
is subject to etofVundei Section 553 ofthe Bankn ptcy Code, to the extent of the value (as specifled in the PIan, or ifno vaine 13 specified as determined ii aceordance with Section 506(a)
ofthe Bankzuçtcy Code) of the intere of ahokkr of such MlowedCtaiin in tile Debto?s interest nsucbpropeo%tOtheeXteiit oftheamountsubjectto setoff asthecaasrnaybe. 2.6 "MIowid Unsecured CWni zneans any Allowed C1am includirig.a Rejection Clairn, but exoluding AHowed Secured Clain: Allowed Adrninistrative C1airns Prionty CIaims and Tax Clainis. 2.1 *A,votdance CIaimsN means any claims for relief of the Debtoi arisingunder (1) any ofSections 542, 543,344545. 546 541, 543,349, 550 and 553 otthe Code; or (11) iaw or I*RT'3Pi4NCF

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1 -2 3 4

equity by virtue ot' decisional Iaw, rule, reguiation or statute under any otber applicable state or fdera1 law. 2.8 HBaIiotw means the.fonn distributed to bolders ot Ctairns and Interests on

whieh an acceptance or rejection ofthe .Pian is to be stated. 2.9 *Banknlptcy Case or KCase means the bankiuptcy case oomrnenced by ths 5 6 Debto?s ffling with the Bankniptcy Court ofaVoluntary Petition under Cbapter 11 ofthe
7

Bankruptcy Code 2.10 'Bankruptcy Cod." or"Cod&' rneana Title 11 ofthe Umted States Code and 8 9 also inehides Sections 151, 158, 1334, 14O81412, and 142 ofTitle 28 of the United States
Ced,. 2.11 *Bankruptey Court" or "Court rneans the Umted States flankruptcy Court fot the Northern Distiict ofCalifoinia, San Jose Dmsion, bavingjurisdictiofl over the Bankruptcy caso and, to the extent of any reference niade pirsuant to 28 U.SC. §157(a) and

10 11 12
f.1

13

1
4

14 15 16 17 18

Lccai Rule 501 i1, tbe unit of such Disict owt constitutc4 pursuant to 28 U.S.C. § 151, eommoniy referred to as the United States Bankruptcy Court for the Nortbern District of
California San Jose Division, and any othei courts or panels baving cornpetentjurisdiction to hear tbe Bankruptcy Case or appeals froni orders entered therein. 2.12 "Bankruptcy Estate" means ib. estate created by the commencement ofthe
1

iIi

1

19 20 21 22 23 24 2 26 21 28

Bankruptcy Case and comprised ofthe property described n Section 541 ofthe Banknxptcy

Code. 2.13 MBankruptcy Fe& mean the quarterly feee payable underSection 1930 of
1

iitte 28 oftbe Un ted States Code.
2.14 MBankruptey RuIee meane the Pederal Rules of Bankn ptcy Pocedure prornulgated under 28 U.S.C. §207$, as amended as applicabIe to this 8ankriptcy 2.15 "cia;& means any nght tapayrnent, or right to an equitable rernedy
for breaih

1

ofperforxnance if such breach gives rise to aright to payment from the Debtor, whethef or not such right to payment orright to an equitable rernedy is reduced to judgrne* liquidated, untiquidated, f&xed contingent matured unmatured disputed undisputed, tegal, equitab1e TOW5flAN 0,

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securcd or unsecured 2 2.16 "Claim, Bar Date" means June 1, 1999k the date estabtisbed by ordet ofthe

3 Banknptcy Court putsuant to Bankniptcy Rule 30O3c as the deadline for filing proofs ofClairn 4 in the Dankruptcy Case. 2.17 "Clas? means a catágcTy or group ofholders of Ciairns or Interests as 5 6 designated punuantto the PEan. 2.18 "company" or "Debtor means Site Teciinologies 1 1nc., a aiifornia 7 8 corpciatOn. 2.19 9 10 1 Order. 11
1

oaflrmation" mears the entry by tbe Banknptcy (óurt ofthe Ccnflrmation

2.20 Confirrnatlon Date° meansthe date on which the Bankruptcy Couit enters

the Confirmation Order. 2.21 "Conflr:ation llearing* rneais the heañng held before the Banknipcy Court in which the Debtor wili seek Conflm atioi of this PIan, includirg any and all adjournments

11.

;:
16 17 18 19 20

thereof. 2.22 'Contirrnation Ovde? rneans the order entered by thc Bankiuptcy Court approving and conirning the Plan in accorciancewitb the provisions ofChapter 11 ofthe Bankruptcy Code. 2.23 Treditor means any entity hoidig a Claim against the Debtor. 2.24 "Debtor's ProfessionaW coikctively means Mum: & Muuay, A Professionai

21 1 Coqrnration, Wdson, Snsnu Ooonch & Rosat, Pñcew2terbouseCoopefs andfov 22 gtj

ifany, suá other prcfessionaiswboSe empioyment by the Debtor is approved b

engaged by 23 order oftbe Banknptcy court and, foflowixig the Effecti e Date, any professionais
24 the Debtor to representor assist it in tbifllling the duties and obligations o%the Debtot under the 23 PIan after the Eftecti'e Date, and administeri*gthe Pian, the Bankriptcy Case and the 26 Bakntptcy estate, reviewing Clanns and Interests objectirg to Disputed Ciairns and Disputed 21 Iriterests as apprc pri , supervising the preparationand fThig of the Debto?s biaI tc returns, 28 and closing the Bankruptcy Case.

-5-

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1

2.25 Disc1osure Statement means tbat informational discloswe staternent issued

by the Debtorpursuant to Section 1125 ofthe Bankn*ptcy Code and accompaning this PIan, and 3 whicb has beietofore been approved by the Banknzptcy Court pnrsuant to thc Order Approving

4 1 Disclosure Statement 5 6 7 8 2.26 "Disputed Claim" means a Claim against tbe Debtot (a) that bas been listed in the Debtot's Scheduies as disputed, contingent or uniiquidated, o,(b) as to wlücb an objection or adversaryproceeding bas been filed within the time fixed by the Bankiupty Court and whicb
objection or adversary proceeding has not bcen witbdrawn o disposed of by a ina1 Ordei ofthe

9 Bankruptcy Cou*t 10 11 12 2.27 "Disputed Claims Reaerve Account" rneans a segregated interest-beariig account maintained and adrninistered by tbe Dcbtor at a depositoty approved by th, Office ofthe United States Tnzstee for the purpose ofholding eash payxnents attributabl,to Disputed Claims. 2.28 D1sputed 1nterests meana an tnterest in the Debtor (a) that has been fisted on the List ofE ity Security Ho1der (as may be amended) as dispute4, contingent or

1 ;, . r

13 14

15 · unliqnidated, oi (b) as to which an objection or adversary proceeding has been fiied 'within thc 16 tirne axed by the Bankriiptcy Court and which abjection or adversazy proceeding has not been 17 18 19 withdrawn ordisposed of by a Final Order ofthe Bankruptcy Court 2.29 "Disputed interesta Reserva Aceount N ineans a segregated interestbearing account maintained and administered by the Pebtor at a depcsitosy approved 1>y the Offlce oftbe

20 lJrnted States Trustee for the purpose ofholding cash payments attributabie to tispnted Interesta. 21 22 23
1 1

23O "Distrlbution(s)" ineans the inonies to be distiibuted under the PIan to holders ofAllowed Clauns and Ailowed Interestt 2.31 Distr1bution Dat.* means the date of cornmencernent oftistribution(s)

24 under the 1'lnn 25 26 21 28
1

2.32 'Effeedve Date" ineans: the firsi business day which is eleven (11) calendar days afcer the Confirmation Date, provided the Confrrnation Order ha becorne a Final Order. 2.33 "Ernpkyment.Agretrneflt(SY meane (1) as to leffrey 1. Alt, that cextain esnploymentlettei dated March 24, 1991 by and between iefftey V. Alt and the Debtor, and (ii) carows PLAN 05 6.

led 12/15/2008 Page of of Ca2e070cvc0-0311-CRMW Document127-10 FiFiled07/24/09 Page1911 44 26 s : 5: - 8- -v 051 72- E Document 118-10 1 2 3 4 as to Sharon 1ugt that cettain Ernployrnent Agreement dated June 1,1998 by and bet*een Sharon ?ugitt and tho Debtor.

2.34 Equity Security means (a ashare m the Debtor, wbether or not transfevable

or denorninated Nstock$, or similar security or (b) awanant ornght (othet than a nght 10 5 conveit) to purchase, seII,ov subscribe to a share, secwity, or interest ofa kind specifled in subparagraph (a ofthi·s section. 2.35 "Eqnity Security Holder' means a bolder ofrecord, or if approptia , the 7 8 beneficial ownet, of any Equity Security of the Debtor as of (a) the Petition Date, (b) the date the
6 9

Order Appvoving Disclosure Staternent is entered, or (c) the Dlstiibution Date, äs the context

10 reqtres. 11

2.36 Fina1 Orde? ñasns an ordei entered on the docket by the Bankr ptcy Couzt 0, 12 which 13 no Ionger subject 10 appeai, ctiçi proceedings or other proceedingsfor review orothei proceedings for review or 13 rebearing, and as to which no appeal, eitioiarj procectlings,
14 15

11

rehearin8 are pending. 2.37 1nterestM rneans the rights and propetty interests represented by an Equity
Security ofthe Debtor. 238 "Local RIIIeS' nieans Ibe Local itules ofthe Unite States Dlstrict Courtfor the Northern District of Californ a, as arnende4, as appiicable to this Bankruptcy Cast 2i9 Ordà Approving Disclosure Statenient" rneans the Order Approving

11.111 16
fi
17 r 18 19

20 Disclosure Staternent, Eixi : g Thne for FiIingAcceptanceS or Rejections ofPian PixingTime for 21

ConfInnation Cornbined with Notice Thereof entered by the Bankruptcy Couxt with respect to 2.40 "Petition Date" meane Pebniary 2,199, the date on which this Bankruptcy

22 the Debto?S Dlsclosure Statement, a copy ofwbieb accompanies this P!aa 23

24 1 Case was eornmcnced. 2.41 "PIan" meang this Pian of Reorganization, includmg any modif cation(s) hareof 25

1121 ofthe bankruptcy Code and 26 and/or arnendment® bereto that cornply with Section
21 Bankruçtcy Rute 3019.. 2.42 "PostPetition Interest" rneans interest at the federal statutory rate set by28 28

.7-

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4 5 6 '7
1

Section 507(a) ofthe Bankruptcy Code, but not inctuding Administrative Ciairns and. Tax Claims. 2.44 "Pro Rata" means the ratio tbat an Aflowed Clann or Allowed Interest in a paPic1 Class bears to the aggregate amount of ali Aliowed Clams or Ailowed Interests
2.45 RejectIon Claim' means an AIIowed Unsecured Claim arising front the

8 sucb CIass.
9

10 Debtols rejection of an unexpued lease or executory contract pursuant to the Pian or pursuant to 11 an order ef the Bankruptcy Court

2.46 'Responsible Persoa' means the mdividual designated by the )ebtor undu the Plan, or as otherwise designated by ocder of the ankxuptcy Couit to assist the Debtor m (a)

1

14
15

fulffluing the duties and obligations ofthc Debtor undei the Plan, and.(b) fuliy adiministering the Bankruptcy Estate as required by the Plan, the Conflrrnation Order, the Bankn ptcy Code and tbe

16

BankruptcyRuIes whioh duties and obligations inc1ude without 1iinitatIon the faciiitation of 17 Distributions pursuant to the Plan, reviewing Claiins and Interests, objecting to Disputed Claints 18 and Disputed lnterests supervising the pieparation and filing of the Debto?s final fax returns and closing the ankr tcy Case.
2.41 "SavoW' rneaiis Savoir Technology Group, Inc.

a· ;: 21 22 23

2.48 StarBase' means StarBase Corporation, a )e1aware corporation. 2.49 "StarBase AgreernenV'rneafls that certain Asset Puicbase and Sal. Ageement

by and between the Debtoi and StarBase dated as o%Vecernber 18, 1998, which sets forth the 24 terms and conditions of tbe StarBase Sale and whicb was approvàd by otder ofthe Bankruptcy Court enteredMarchli, 1999.
26

2.50 'Starflase Sale" means tbetransaction contemplated by the StarBase

21 ·ent

28 1/1

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507 (aX8) of the Bankruptcy ode.

2.52 lransfer Agent" rneansli.S. Stock Transfer corporation.
2.53 "Unctaimed Froperty' rneans any i)istribution that àannot be deiiveted to or

is not accepted by (1) the boldev ofan AIIowed CIa xn andfor (li) the holder ófan Aflowed Interest ofan Equity Security iolderas ofthe Distribution Dat. and shall include, withoutlirnitation, 1 checks (and the fund3 zepesented thereby) that are retumed as undeliverable withäut a proper

forwarding address, are not cashed, or not detivere4 becaus. ofthe absencc of a proper address
9 10 11
1

1 to which

to deliver the Distribution togither with any interesl on said 1%inds. 2.54 'V. S Trutee" rneans the ofl3ce ofthe Uiuted States Tnzsteefor Region 11 of

the Unhted State& A terrn used in the Plan tbat is not berem deøned but is used in the Dankruptcy Code
Of oi the Bakn ptøy Rules shall have the meaning assigned to sucb terrn in thc Bankruptcy Code

1
14

thc Bankruptcy Rules. 3. DSA71ON OLA1M4I, IN!RESTS The Allowed Claiins againat and Ailowed interests in the Lebtor are designated and ciassified below for purposes ofthe PIan. Except to the extent the Pian provides otherwise a Claim or Interest that is properly inciudable in inore than one Class 1 classiiied in a particular
Class only to the extent that it qualdies within the descnption of that C1ass and 1 placed
1

i4 16
17 r 18 19 20 21 22 23 24 2 26 21 28 1/1/

15

rn a

different Ciass to thc edent 11 qualifiea wztbin the descnption of sucb differerit Class.
3.1 CIasI. Pnority Claini.

3.2 C1s3Z. c. 3.3 3.4 ciaa&4. 3.,

Aflowed Secured Claimof Savoir Technology Oroup, Inc.. Allowed Unseeured Claims. Allowed 1fltSt$ (CaflUnOfl stock) of Equlty Security Ilaiders as ofthe DistributionDate. Aiiowed inteycsts ofthe boiders of outstanding, untenninated options, Warrants and(o.r other ngbts to acqiure any Eqtuty Secunty of tha Debtor

Iamwsn.ANOrR*COA1A11ON

5.2

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TEAMN OSI1.14I$

Unc1assited Claims shall be treated as tollows: 4.1 AIowe4d:sve1C 1ai!flS. Each holder ofan Allowed Administvative

the Effective 4 Clairn shall receive payment of sucb Claun, i easi in fll,upon the iatest of (i) Date, (il) ifsuch Cram is a Disputed Claim, upon aliowance ofsuch Ciairn by a Final Order of 6 the Bankruptcy Court, (iii) ifsucb Claim is inctuted after the Petition Date in the ordinary course 7 8 ofthc Debtor's bniness, within such tiro as payment is due pursuant to the tertns g%ving risc to
such Claim, or (iv) such other tinie as inay be agveed to by the holder of such C!airn. Any

9 request for allowance of an Adnilnistrativc Claim puvsuant to Section $O(a) of the Bankruçtcy 10 Code, othev than by the Debtor's Professioiiats and the 13.5. Tnistee, znust be tited within ten (10) 11
'.4 W1

days foliowing thc Effective Date or the boldet of such CIairn witi be forever barred ftom

12 asseftiflg sucb ClaIm or receiving any payment on account of sucb Claini. Bankruptcy Pees shall be paid by the Debtor to the 13.5. Trustee for deposit into thc Treasury, fo: each quarter 14 (including any fraction thereof) untIt this Case ia converted, dismissed ot ctosed pursuant to a 15 linal decree, as required by 28 tJ.S.C. §1930(àX6). 4.2 Ta claim. Each holder ofa T Ciaiin will be paid in futi on the Iatest of (i) 16
(lil) such other i'/ the Effecti'e Eate of the PIan, (ii) upon atlowance by he Bankruptcy Court, or 18 tini. as may be agreed to by the holder of such etaim; ptovided, however, the Debtor may &ect to

1
J4

iIa z
0.

19 payTax Claims in dcfërred cash payrnents, ever a period not excceding aix (6) years after date of thc payment in 20 assessment. }owever, in no event shall the boldcr of aTax Clain* be paid pnor 10 prionty pursuant 21 fWI or reservation for AHowed Secured Claims and Attowed Claims entitled 22 10 Section 507(aX I ) through (aXl) ofthe Bankruptcy Code.

1

23 24 25 26 27
The foilowing classes of Claims and lnterests MC iinpaired under the PIan, and Shall thc Plait : There are no classes of Claims and btterests whicb ard 001 ir paired nnder ___ __ I]

28 1 be treated as foliows:
·10-

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2 receive paymcxt in cash in full, plus Post.Petition interest, on the Effective Date. 6.2 çtass iaim (.oir TØo10 Grou Jpc.). Tbe Class 2 Claim ofSavoir 3 4 is based on prepetition ioans and advances iti the principai amourt of appzeximately $200,000, 5 plus interest1 as evidenced by certain notes, sceurity agreernents and IJCC-1 ftnancing statetnents. 6 Savoir sliaII retain its lien to the extent not avoidabie, which lien wili attach to thc proceeds torn the sale of its coitatefal. Savoir's AiiowCd Secured Claim will be paid in fbfl on the latest of(i)
1

8 the Efictive Date, Qi) ten (10) days foliowing entry of a Pinal Orde, aliowing its Class 2 Claim 9 or(iii) sueb date as otherwise agreed between the Dcbtor and Savoir. The balanee of any Claim 10 by Savoir will be treated as a Class 3 Claitn.· s3Ciajji&(thseedreditOr4 Thc holders of Class 3 Allowed 6.3 11 12 Unsecured Claims shail receive payment in cash in M1, ineluding Poat-Petition Intesest, as soon event later than the later of(i) thirty (30) daya 13 as practicable aftet the Effective Date1 but in 00 14 alter the Bffective Date oi (11) npon resolution of all Disputed Claims including Rejection
·1

Clainis; p de4.Jow.a. no payrnent shail be mac to members of Class.3 until atter thc 16 payment ofor reservation for alt Ailowed Admini$ttatiVe CIahns Allowed Secured Claims, Tax 11 Claims, Priority Claims, any other senior Claims, and posConfirmation expcnses of 18 implernenting the PIan, winding up the affairs of the ebtor and closing the Bankn ptcy Case. In 19 the unlikely event thete are insufflcimt funds avaitable to pay CIass
3 Claizns in ñiIl with Post

20 Petition Tnterest as dscñbed herein ho1dcr of Class 3 Aliowcd Unsecured Claims shall be paid 21 10 rate *om the tbnds availabte for the payment of Class 3 Claims. EachEquitySecuntYBOiderS1than stIntçre$a(çonw Sç 64 22 23 Mlowed Class 4 Interest as of the Distilbution Dat. shall receIve a pro tata distzibution *om 24 availabte fbnds, as soon as practicable alter (i) th. payment of or reservation for all Aflowcd Administratie Claims, Aflowed SecuredClairns Tax C1aim3 Prioiity Ciaims, Al1owcd 26 Unsecured Claims, any other senior Ciairn; and posv.Conflnnatioi expenses ofimplementing Pebtor cl etosing the Bankruptcy Case and (ii)resoLutiofl 21 the Ptan, winding up the akTairs ofthó 28 of or reservation for all Disputed Claims and Disputed Interests. Alt Class 4 lnterests shail -11-

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I 2

I

otherwise be canceled and extinguished on the Distribution Date.

6.5 Cat,5 te

Optipnsn4 War1* The holders, as of the Effecthe Date,

3. of outstanding unterminated options and warrants to acquire.the Debtor's common stock shall 4 receive nothing under the Plan and their respective interests shall otherwise be canceled and 3 extinguished on the Effective Date.

6 7

') t1

# [óJ[4J j FW

8 StarBase stock, the auction and the Blum compromise will be theprims source of fbnds tbr 9 execution of the Pfan Any other assits of the Debtor (e.g., Avoidance Claims) shall be 10 liquidated as appropriate except for those assets which the Responsible Person determines to be os of inconsequential value, which assets will be abandoned. 11
'4 C. 4. .4

1.2 QssementoEUfl43. The Debtor shall make the payments to all creditors 13 with Allowed Claims. The Debtor shall wire transfcr the balance of funds designated fey 1 14 shareholders to the Transfer Agentwith appropriate instructions from the. Responsible Person 15 directing the Transfer Agent to make a pro rats distribution to shareholders of record as of the 16 Distribution Date; 7.3 Re$isib!.Pson. 17 Jeffrcy V. Alt ("Alt"), the Debtor's Chief Executive Officer and Chief A. 13 19 Pinancial Off cer, shall be designated as the Responsible Person. The Responsible'Person shall 20 be compensated on an hourly basis at air hourly rate not to exceed $200.00 from and after the 21 Effective Date. The Responsible Person may, in his discretion, employ such other persons as 22 may be necessary to assist him in this Case; in the event that Alt is unable to serve as the 23 Responsible Person, the Debtor ts Eoard of Directors will appoint an individual to serve as the 24 Responsible Person. The Responsible Persçn, on behalf of the Debtor, is authorized tà B. 2 26 liquidate the remaining assets of the Bankruptcy Estate and/or abandon such assets as the 21 Responsible Person determines to be burdensome or of inconsequential value to the Bankruptcy 28 Estate. The Responsible Person may enforce any claims and prosecute any causes of action in
BrO*s,uNOpsE4*GANA1101

I§ ·.gø.e

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favor of the Bankruptcy Estate, including, without lirnitation any actions undct Sectons 310. 542, $43, 344, 545, 547, 548 and 49 ofthe Bankruptcy Code C.. The Responsible Pe .scn may teview and object to Claims and interests enter into comprornises to allow and satisfy Dted Claims and 1)isputed lnterests and settls and liquidate any claim or cause ofaction that the Debtor may have aga nst a thiid party. 0.
Thó Responsibie Person is authonzed to retain, eznploy and utilize· such

professionais aa xnay be nece8azy without further approval ofthe Baniw ptcy Court
.

The Responsible Pefson shaH review and approve ths Oistribution

amounts to Creditors and to the Transfer Agent (on bebaif ofsbareholders of record as ofthe Distribution Date) and shall be responsible for making, or causlng to be made, I)istributions pulsuant to the Ptan. P. The Responsible Person shall be.responsibie for moving for the entfy of afinai decxee in this case and preparing and filing status reports as may be required by the Bankiuptcy Court in connectIon witb the final decree. Tbe ltesponsible Person shail be

IJiH

discharged from all duties and responsibilities ofthe Plan upon the issuance of the final decree. The Respcnsibie Person shall be entitled to destroy all records in bis possession upon entry ofthe final decree, except sucb corporate fonnation docurnents, minutes and other recorcfs as the Responsible Person considers to be material and original .xecuted coçies of docwnenta filed with the Securities and Exchange Cornmission all of w1 ich shali be retained for five (5) years,
20 and tax returns and related records, which shali be retained for six (6) years provided,however,

F

21 that in any event, such reeords as required by the !nternal Revenue Service shall be retained at
22lteastuntilAprii 15,2004.

23

0. The Responsible Person shall doali things necessasy ad approptIateto

24 assist the Debior in fulfflIing the duties and obligations ofthe flebtot nnder th, ?Ian and fully

25 adrninistering the Bankruçty Estate as required by the Plan, the Coiiirnmtion Order, the
2611 Banknqtcy Code and the Bankruptcy Rules

2?

7.4

28 Subject to the notice procedures set forth in this Section, the Responsible Person is authorized to

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(1) enter into

bindng cornprornises 10 allow and satisfr Disputed Cianns and Disputed Interesta

2 3 4

or settle and Iiquidate any claim or cause of action of the Debtor, (11) sell the Debto?s remaining assets, and/or (ili) abandon property ofthe Bankruptey Estate which the i(esponsible Person

detennines 10 be burdensome 0*' of inconsequential beneflt 10 the Bankruptcy Estate. The 0*' 5 ResponsiblePerson shali mali vntten notice of any suc:h comprom se, disposition, 6 abandonrnent to the twtnty (2O Iargest unsecuted creditors the U.S. Trustee and those parties
7. who have flied awritten request that all notices be mailed
8 9
*0 them.

Ifno party serves on the

Responsible Person and Debtor's counsel a writtcn objection ordernand for a bearing on the compromise, disposition, or abandonrnent within ten (10) days of mailing of sub not*e the compromise, disposition 0*' abandonrnent shali be ef ective, finat and bmding on aU Ci'editors, Equity Security Holders, and othez part es in interest in ibis Case without firther approvai 0*' action by ibe Court. The tirne for serving written objectons shall not be extended pursuant to Rule 9006(f) ofthe Bankruptcy Rules. iftimely notice ofan objection to the comprornis; disposition or abandonrnent is served on the Responsibie Person and Debtof's counsel, the ftesponsible Person shaH (1) withdraw the proposed comprornise, disposition or abandanment wherein 1* will be without force and effect, or(ii) move for the appFOVaI ofthe cmpronhise, disposition or abandoumont on notice to thi twenty (2O largest unsecured creditors, tho U.S.
Trustee and those parties wbo have f'ied awritten request tbat ali notices be nuuled to them.

10 11 12 13 14 1 16 17

1

1 19 20 21 22

7.5

pçrae.PorfltiS. The Responsible Person is authorizcd on bebalfofthe

Debtor to exccute alt instniments, agreeznents and documents and 10 take alt action by tl*e Debtor necessary to eftectuate the provisions of the PIan without flurther action by the Debtor's board of directors ot shaehoidets. 7.6 pe 9fP9feSSc!Ia13 All professionals shall be øntitted ta payment of their postConfirmation fees and reiznbursernent of expensea . on a monthly

24

the 25 basis Professionats shali serve 5 detailed stat en ofunpaid tecs and expcnses on 26 Responsible Person. ifthere 1:S no objection *0 the requested fees and epensea within ten (10)

21 days of service by the profóssional, the Reaponaibin Person shall pay thc requested amount in 28 fbll. ifthe Responsibie Persoá objects *05 portion of the fees ot expenses submitted by any
tST0R'SPtAN OFRZO*GA$ATI0

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(11) resolution of the disputed arnount by the Bankruptcy

Côurt pursuant to a Final Ordei. Professionals shail not otherwise be requued to fite appiications fot Court appro'val ofpost-Confinnation fees and expenseL Ykt! Secnities. Fursuant to the re. irernents of Section 1 123(a)(6) of the Bankruptcy Code, the Certiiicate of Incorporation oftho Debtor shall be. and 11 bereby is deemed arnended as ofthe 10 Effective Date to conforrnto the flankniptcy code provision which prohibits the issuance ofnon11· voting equity secunties and reqnires aniong other things, the distñbution ofvoting power 12 el 13 equitably aznong the classes of voting securities. 7.3 UjelamdProqertv. With respectto each Ailowed Clairn and AIlowed

14 Interest, the existence ofUnclairnèd Property on the 90th day foiiow ng a Disttibution shall cause theTespective AHowed Claim or Ailowed Interest to be disailowed, and the amount ofthe

1""
.2 .4

16 '7

Iinclairned Property shail become available for distribution ptnsuant to the PIan. 7.9 ionogo!ton Pursuartt to authonly contained in Section 141)0 of

1

18 the California Corporation$ Code, the Debtor shati be dissot'ved and its corporate existence 19 terminated without further corporate action upon the entry of a final deere. in this case pursuant 20 to Rule 3022 ofthe Bankruptcy Rules. Thë Conflrmation Order shall be deexned an order 21 22 23 24 2
26

authoñzug and directing th. Responsible I'erson to ide a certificate of dissolution as required by Section 1401 ofthe Cahfonna Corporations Cod. and the Respcnsible Person shail file such certøicate ccncurrentty wtti the request for entry ofa final deere.. ___ 8.1 j(·) it0!PC914; ExcectaspreviouslyProVidedby

Bankniptey Court,order, no other executoiy ccntract or unexpired lease will be assumed by the

27 Debtor. 23 8.2 R oofExecuoiy onacts andUiexpired Leases. Without adinitting the
DeDToWsPLANOr

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led 12/15/2008 Page of of Ca2e070cvc0-0311-CRMW Document127-10 FiFiled07/24/09 Page2820 44 26 s : 5: - 8- -v 051 72- E Document 118-10 1 validity àf anyothef executoiy contract or udexpifed teasc, any executory contract or unexpired 2 tease not expressly assumed undei thc Plan or otherwise asswned (and assigned, where 3 applicable) pursuant. to prior Bankn*ptcy Couit ordei, shail be rejectecl as of'the Effective Da 4 5 6 subject to Section 8.3. 83 Te ofxetorv Cc ntract a UeqpiçJLeas*. The DebtoF reserves

the ngh$ to appiy tö the Bank . ptcy Court prior to Confnnation to assurne, ass une and assign, or

1 reject, pulsuant to bankruptcy code Sect*on 365, any and ó!1 eontracts that are executory and 8 9 leases that·are unexpired. AH executory contracts and unexpired leases ofthe Debtor that are not (a) asswned 01 asswned arid assigned prior to Confirrnation, (b) the subject of a pendinginotlon

10 to assuifle or assuflle and assign fiied priorto Conflrrnation or (c) assumed or assumed and 11
·4 -I

assigned pursuant to the terms of the PIan are hereby rejected by theDebtor. Confksnation ofthe PIan shall be deerned to conStitute Bankruptcy Court approval of such rejection. 8.4 eiçtioiC1airn. 1ejection Ciairn shall be clas5ifled as Ciass 3 Claims. A. In connection with the tThbtot'siejectiofl ofthe Lease, thc Subiease and

12 13 14

·ji

15 16

the Equiprnent Leases, the Court entered its o,ders requieing these parties to subnnt their Rejection C1airns ifany, on or before .June 1, 1999. B. With respect to the rejection of any other executoiy contracts or

·'i.·

17 18
1'

unoxplred leases undei the PIan, within thirty (30) days foliowing th. Effective X)ate the holdet

19 ofa Rejection Ctaun (not subject to Section 8.4.A above) shil tIle with the B kn ptcy Court, 20 21 and serve on the Debtor's counsel, a proof ofCIairn evidencing stzch Rejection Claini or be forever barred from assertirg any such Cia*m ot receiving any paynzent ofl account of such
ir' A:W1I

22 ClaiflL 23 24 sl 9.1

!'' orPilinPofoCIai Procfsofaairnshthlbefilndwiththe

26 1 Bankruptcy Court no later than the Claiins Bar t)ate. 21 28 A.
A$ soon as practicabLe aftei the Distribution Date, the Debtor shail

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obtain froin thc Transfér Agent a list of ali Rqu4y Securty flolders ofrecord and theu respócte interests as ofthDistributiofl Date. Sa14 List shall be conchisively presuwed to be complete and aceurate in all respects The Debtor, its piofessional* and the Responsible Person shall be entided to rely on said Iist in connection with any Distributions to be made to Class 4 interests.
5 B. For purpcses of aáy thstribution under tbe Plan the.tebtor and the
OF Jnterests 6 Responsible Person shail bave no obligation to recogniza any transfer of Clauns

7

occurring on or afler the Distribution Date. The Debtor, it professionals and the Responsible

8 Person shall be entitled to recogrnze and deal for ail purposes with only those ciairnholders of 9

reccrd stated on the claims docket rnaintained by the Bankruptcy Court and those stockholders of The Respnsb1e Person shall cause the Debtor to inake the payinents to

10 recotd stated on the stock records maintained by tha Transfer Agent as of th, Distribution Date. 11 12
v1

.C.

all credhors with Allowed Claims. The ftesponsibie Peison sbait also cause the Debtor to wire

13 14 15 16

transter the baiance of f%inds dàsignated fbr shareholders to the Transfer Agent who wifl be instnicted by the Responsibte Person to make a pro rata disiribution to sbarcholdors .ofrecord as ofthe Oistribution Date. 9.3 Tune fot P
Qbqcton. Any objection to any Claim
Or interest

1

·1I

shall be

17 1 filed p0 later than ninety (90) days after the Effectwe Date. 18 19 20 21 22 23 24 25 26

9.4 Dzspute4 CIaitm. aji4isped

$OU11tS.

OnIy Mlowed

Claims and Aflowed Interests sMI be entitied to â Distribution nnder the Ptaa If appropriate, the Debtor shali rnaintain and administer aDIsputcd Claims Reserve Account and a Disputed lnterests Reserve Account Cash payments attibutab1e to Disputed Claims and Disputed interests shall be rnaintained in the appropnate reserve account untlI such time as such Claun or Iptereat is ailowed or disallowed pursuant to a Vinal Order. 10. _______________ 10.1 Nothing in the Ptanshall be deemedto constitute a waiver ofthe powers ofthe

Debtor as 5 debtor in po5session under the Bankruptcy Code, 11* Bankruptcy Rules or the Local 27 Rules, and the Debtor shatl retain after Confnnafiofl and after the Eftective Date, all powers 28 granted by tho Bankruptcy Code the Bankruptcy Rules and the Locai Itules.
ce5T*'$ flC0MZhTO1

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1

L

'4II

11.1 After the eniry ofthe Order of Con1nnation Eiy be Bankniptcy Court and
except as otherwise speciflcaHy set fortb in the PIan, any term 01 the Ptan may be waived on1 by the paity 01 paities entitled to the benetlt ofthelerrn to be waived.

12.1 . The Debtor, as proponent of the ?lan, requests Confirrnatión ofthe Pian 112 In the event any impaired Ciasa shati fail to accept this Plan in accordance with
Section 1 i29(a)(8) ofthe 1ankruptcy Code, the Dèbtor requests that the Bankniptcy Cou,t confirm the FIan in accordance with Ib. provls ons ofSection 112*) of the Baiikn ptcy Gode. 10 11 I3 Ri]ON 13.1 Mer Conftrmation, the Bankruptcy Court shall retain and bave all authority

1 and jwisdiction as is allowed under the Banluuptcy Code and other applicable Iaw to enforce the 13 provisions purposcs, and intent ofthis Plan including, without lirnitation, matters or proceedings

141 tbai relate to: .15 16 ·
c R·'-

A.
B.

The StarBas. Sate. Atlowance, disallowance, adjustrnent, treatrnent, 01 liquidation of

17 Clainis and Interests and objections thercto; Thó assurnptlon, assignment, or rcjection of any executoiy contract or C. 18 19 unexpired Iease,
01

any agreement tease contract asic, purcbase, assignnhent, or other action

20 takenwith regard to property ofthc Debtor 21 22 D. B.
P.

The title, rights or interests ofthe DebtoF in any property Miy right, pówer, actIoi o, duty oftho Debtor under this Pian; Any dete i ation or estirnation necessa 01 appropnate under Section other detenninatan or estiniatiofl relating to ta* returns filed or to

24 505 ofthc Bankruptcy Code or

25 be filed by the Dbtor for periods through the end of the fiscal year imwhich the Effcctive Date 26 QCCU[S including, without innitation, thc deterrnination ofthe ainount oftes, net operatixig 27 iose, tc. attributes tax benefits, tax refIincJs and reiatCd matters ofthcDebtor, 28 0. ftequests for paym t of Claims entitied to prionty under Section 507(a)

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ofthe

Ban1ptcy Code, including. compensation and reirnburscment of expenses for

2 professionaIs to the extent Banlcruptcy Càuxt approval therefor 3 Confirrnation Order 11. 4

is required under this PIan or the

Resolution of controversies and disputes, including the couection of

5 an mistake, defect, orornission regarding interpretation or enfcrcement ofths PIan,the 6 Conflzmation Orde·, and any agreenients refwed tobesein or executed in contemplation of or to 7 impteinert this Pian; L 8 lrnplementation of the provisions of this Plan and entry of orders in aid

9 ofConfivmation ofthis Plan, including,without lirnitation, appropriate ordeis to pioteet the 10 Debtor ftom actions by holders ofClainia and lnter.sts; Modification ofthis Plan putsuant to tlie Bankruptcy Codo; J.
11
4 r.

-

12 13

L L.

Adjudicaton of añy causes of action btought by the Debtot; The entry ofan order, ineluding irjunctions, necessary to enforce the

W1

· .1

and intent of this PIan, and to irnpose 14 titic, nghts and powers of theDebtor and tbe purposes 13 sueh iimitations, resiçictions, ternis and conditions of sucb title, rigtts and powers as tbe Court 16 may deern necessary 17 18 19
1

M.

Such other rnatters as rnay.be provided under the Bankiruptcy Code, this

PJan, the Contlrmation Order ar other applicabie Iaw; and N. Enty ofa final decree closing this Cbapter 11 Case, including

relief as may be equitabie ;onsisteflt with BankruptcyRuIe 3022 20 ptovision$ for injunctive 21 22 23 24 25 M of the Effective Date, the eIrect of conflrmation shail be as provided ui Section 1141 ofthe Bankruptcy Code and as foltows 14.1 jjin Eect fle provisions ofthe eonflrned PIan shail bind the Debtor any entity aequiring property under the Ptan 1 any Creditor, and any Equity Security Hotder,

26 whether r not the Claim orinterest of such Creditor or Eqwty Security Holder is irnpaired under 27 the Plan and whether oi not any sucb Creditor or Equity Security Holder has accepted the Plan. 28 14.2 yestin 9fPonei Alt property of (he Bankruptcy Estate shall veat in the
DaBTO'SPtAW OVR*OROA.1P

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