Software Rights Archive, LLC v. Google Inc. et al

Filing 118

SUR-REPLY to Reply to Response to Motion re 66 MOTION to Dismiss for Lack of Standing filed by Software Rights Archive, LLC. (Attachments: # 1 Exhibit Table of Exhibits, # 2 Exhibit Exhibit 1, # 3 Exhibit Exhibit 2, # 4 Exhibit Exhibit 3, # 5 Exhibit Exhibit 4, # 6 Exhibit Exhibit 5, # 7 Exhibit Exhibit 6, # 8 Exhibit Exhibit 7, # 9 Exhibit Exhibit 8, # 10 Exhibit Exhibit 8, # 11 Exhibit Exhibit 10, # 12 Exhibit Exhibit 11, # 13 Exhibit Exhibit 12, # 14 Errata Exhibit 13, # 15 Exhibit Exhibit 14, # 16 Exhibit Exhibit 15, # 17 Exhibit Exhibit 16, # 18 Exhibit Exhibit 17, # 19 Exhibit Exhibit 18, # 20 Exhibit Exhibit 19, # 21 Exhibit Exhibit 20, # 22 Exhibit Exhibit 21, # 23 Exhibit Exhibit 22, # 24 Exhibit Exhibit 23, # 25 Exhibit Exhibit 24, # 26 Exhibit Exhibit 25, # 27 Exhibit Exhibit 26, # 28 Errata Exhibit 27)(Duvvuri, Narasa)

1 CRG M I*Rl (017820)

2 STHE T. O'N (11S132)

3 A Prfeon Co
3030Ha. . . . Way, Sui

JANCI M. MUY (Q9 MUY &; MUY
200

4 Pal Alto. CA 9404100 (650) 852-9
5

FILED
APR ~ 5 lOOO .9 ¡¿
,-~l!NAN ~. tt1YRAAY. 01 "'ti~

6 1
8

Atey for De

iinlted. .. " .' ¥1t''.FL ~nI'.. SflleUi . II HeY
§,"n .ll1SI!; q",jf,.m 1l .

9
10

UND STATE BANUPCY COURT NORTH DISCf OF CALIFORN
SAN JOSE DMSION

11 !nre:
. ; 12 Si Teclogies In..

Cu No. 9950736-JRG-ll

I

a 13

~ db Deoi Inc.

Cha 11

Der.
No.: 71-0212760

U. int' :: BI

~:m 16
j~~i~ 17

DE.'$lJAMD nWÇL08l, SIATEMINT
Dated Apri 25,200

l ::
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20 .

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24 25

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\~t
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1.. .ORlhl~'AI

ii"~IlA'l
EXHIBIT 5

1

¡ABLE OF CONT

2
J SUMY

OF PLAN TRTM . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ò . . . " 1

l!

4 1. INODUCTION..................................., . . . . . . . .... . . . . . : . . . . . . .. 3 5 2. DISCI ..........,................ .'. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 5
6 3. DEFONS..................,.......................................... 6
7 4. VOTlG INSTRUClIONS ................................................:. 6 8 5. HISTORY OF TH DEBTOR ................................................ 7

9 6. TRSACTONS WI INSIDER .. . . . . . .. .. . .. .. .. .. . . .. . .. . .. . . . . . .. . . ... 10
10 7. SIGNCANEVS DURG

CH 11 ............................... 10

11 7.1 StaBas Sale. . . . .. . .-. .... . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . " . . . . .. . . . . .. 10

i

12

7.2
7.3

Sale

of Staas Stk . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . .. 1 1

¡ 13
ll 14

Aucton Sale . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . .. 1 1
Rejecon of

7.4
7.5

Exectory Contct an Unexired Lea. . . . . . . . . . . . . . . . . . . . . .. 12

"ldlt jlUI:
~

j~W 15
!. ~ 18

Blun Compromi ......... . . . . . . . . . . . . . . . . . .. . . . . .'. . . . . .. . . . . . . ~ . . .. 12

16 8. DISTRUTON ANALySIS................................................ 13

17, S.i Proj~ Distibution toCtedrs an Sharëholder ......................... 13
8.2
8.3

Ot Asts . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 15
COon Stock .......................................'............,. 15

l 19
20
21
22'

8.4 Stock Option Pla . . . . . . . . . . . .' . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 15
8.5 Warants. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .' . . . . . . . . . . . . . . . . . . . . . . . .. 16
9.

DESCRION OF PLAN .................................. . . . . . . . . .. . . . ... 16
9.1 Geer '.. . . . . . . . . . . . . . . . . . . . . . .. .' . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . .. i 6
9.2 CluøeaoitofClams an mter Unde

23

24 '

th Plan ......................... 16

.25
26 27
28

9.3 Detion an Treat of

Unced Cla... ... . . .. . . . .. .. . .. .. . . .... 17

A. Alowe Adatie Clai . . . . . . . . . . . . . . " . . . . . . . . . . . . . . . . . . . .. 17
B. Tii CJa .......... . . . . . . . . . . . . . . . . . . . . . . . . .'. . . . . . . . . . . . . . .. 18

9.4 Uiied Clll ..............,.................................... i 8
: bpi
-1-

DA t:'O

Il'S DlISAT1

1

9.5

Den1I .'d an r fT....;.. ~.............................. l" ' . T ea o~.. CI_M~
A
B. C.

18

2
3

Cl 1 Cl (Porty Cla) .................................... 18
CI 2 Cl (Savie Teco¡y Group, In.) . . . . . . . . . . . . . . . . . . . . . . .. 18

4
5

CI 3 CJ ~1TT..... "-"1:"_-') 19 \.v .. 'l,~lt ............................... ,
CI 4 Inteess

D.
E.

(Common Sto) ................................. 19

6 7 8
9
10
11

Cla 5 Ints (0p0l and W~) . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 20
the P1a ........................................ 20

9.6

Mea For&etion of

A.

Lono~;teiaining I'~~ . . . . . . .R . .. . A. .MoU_ . 20 i 'qu i' 'pi' --_..- . . . . . . . . . . . . . . . . .
Dien of

B. C.

Funds .. . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . " 20

Rec Pern . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . " 20

D.
E.

.. 12

~ai~~~~~~~.~~~~~~~~... ..... ..... ..... 21
Uncøùn Prpa ............................................ 2 I
Proesona: . . . . . . . . . . . . . . . . . '. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 21

f ~

13
F.
G.

i. 14
~'iilil 15

~n ofCoqxon .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 22

~jÎx~f
)t~iii~ 17

10. EXORY CONTCTS AN UNIR LE ...................... 22

i1J¡U 16
!21l 18.

~ 19
r!

21
11.1 Tun for Fig Prooti of Cla ......................................... 23

22
11.2 Evi of

Cl'or In : . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . " 23

23
11.3 Tim for FiObjccon ............................................. 24

24
2S

26
27

11.4 Died Claai Di Interes ReseAc .................... 24 12. BEST INTS 'fT ................................................. 24
13.

VOTG PRocUR AN ~UIS . . . . . . . . . . . . . . . . . . . . . . . . . . . . " 25
13.1 BaØot an Voq ........ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 25

JI
J."l

28

..i."

-u-

DI'1 Df :sATB

1

13.2 Credtors

and Iner Holder Entied to Vote ............................. 25

2
3

13.3 Imai . . . . . . . '. , . , . . . . , . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 26

13.4 Vot Reed fo Cl Acceta. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 26

4
5

14. CONPTION ...................... .',' . ... . . . " . . . .. . . .. .. . . . . '," . ... .. 26
14.1 Conf,ll. .' . . . . . . . . . ...' . . . . . . . . . . . . , . . . . . . . . . . . . . . . . . . . . . .. 26
14.2 ConfonReemeo. . . . . . . . . . . . . ... .'. . . . . . . . . .. . . . . . . . , . . . . . . . .. 27

6
7
8

14.3 Confon ~itout A~ by Al ~aied .

Cl QfC1a or Inere ( Cr Dow) ..........................,... 28

A Sec Cl . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. .. 28
9
10
11

B. t1éd a. . . . . . . . . ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . '. .. 29
C. lì ....... . . . . . . . . . . . . . . . ò . '. . . . . . . . . . . . . . .. . . . . . . . ... . . .. 29
14.4 Staoi Colice. '. . . . . . . .. . . . . . . . .'. . . . . . . . . . . . . . . . . . . '. '. . . . . . . . . .. 30

.. ..

12
14.5Bfec ofCoiition ....,........................................... 30
13

~

i

A. Bin Ef . '. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . ., 30
14
B. Ves of

tIi~.'il l ~l
riO' ~

J .i , t'Îf r

15

C. Dioo$c .... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 30
14.6 Pla Modn . . " . . . . . . .'. . . . . . . . . . , . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 30

.'

Prope . . . ;. . . . . . . ò . . . . . . . . . . . . . . . . , . . . . . . . . . . . . . . . . .. 30

H;
17

:i iii~
· ~r

êJJ~! .

ig
19

15. CH 1 i POST-CNFTION REORTS AN FINAL DECREE. . . . . . . . . .. 31

i 5.1 Post..on Repo ............................................. 31
15,.2 Serce ofR.ort ....",....,..,..... ~'. . . . . . . . . . , , . . . . . . . . . . . . . . . . . . 31
15,3 Fma De . . . . . . . . ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . " 3 i

20
2.1

16.

22
23

JlDICTON ...................., '. . . . . . . . . . . . .,. . . . . . . . . . . . . . . . . . . . . ., 31
17.1 Headi.. . . . . . . . . . . . . . .. . . . . . . . . . , . . . . . . . . . . . . . .' . . . . . . .'. . . . . . ; . .. 33

1,. MISCEUS .............. '. . . . . . . , . . , . . . . . , . . . . . . . , . . . . ., . . . . . . . . . . . 33

.2
25

17.2 SinlPlu. . . , . . . . . . . . . . , . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 33
.17.3 Gter. . . . . . . . . . . . . . . . . . , . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . .. 33
17.4 Comptan of Tim

26
Perds ......................... .................. 33

27

iø

18. CONClUSION . . . . . . . . . . . . , . . . , . . . . . . . , . . . . . . . . . .. . . . . . . , . . . . . . . . . . . , . . .. 34

."D lÐ

1;w

-ii-

æiS Df aTAT!

1

SUY 0' PLA 'f
IS MODJF IN IT ENTYBY TH MOD DISUR stAtJTAND TI SPECC PROVtONS OF
TB SUY

2
3

DETAI UPAnON CONTAl IN TI BACE OF TH
'I PL 0' RE.lGANTION, WHCH PROVIONS SHA

4
S

SEC HOLDER.

GOVE TH 'ITMT OF ClITRS AN EQUl

6 '8ta fi SiW Teclog In., dba De Poín In. (th "Dr') 'ti it Ch

7 11 Ba Cu on Feb 2. 1999. Th Dio8U S~ ai th acmpayi Pla of
8 Rergaizan CO tb Debtots prposa for an orderylida ofitsau.
9 Votiiluni: ~mp th Dislosu Statemt is a Bal .whch may be used to

10 vote on the Pla In order to be tiy. Balots mu be rec by coel for the Debto not later
I 1 th 5:00 p.ID Oil May 30, 200 at

Muy & Muy A Prfeson Coora
Att Jance M. Nfy, Es. 3030 Ha Way. Sui 206

Pa Al. CA 94304100 T~1l:. (650) 852-90
Far-;:[phone]
COiiD Bea: Th Ban Co ha

be ased to scede a he to conser

confon of

th Pla Crtors.. Eq Sec Holders and pares in ines wi rec a

sepa notice accmpanyl thDislosue Stateen idei the da. tie an pla of

th

Confon He and ideng threementl for fi and se obecons. ifany. to
coii of th P1 Th Conon Heag niy be ad, fr ti to tie wi
fu noti cxce fo th anun ofth adou da made at th Confon

Hoa or an subsen' adjoued Coon Hea.
Mean. of

ImplèlöDtatin:. The Debr conste the StårBas Sale (ii defed in the Pla)

pu to whch the Det score tcology as wer sold to StaBue in exe for
625,00 øl. of Stue st. Af th exirtion of oereons th Debr sold al of
it Sta st' Th

Der al conduct an'auetn ofit fi as (e.g., fu.

cq au miJa, pe pr). Pr ftm th sae oftha Staas st th
auctn an ot as which may be liquat by th Der wi be dist pu to th

i...

-1-

ai"DiiITÁ~

i te of the PIa. The Ban Este pres ha apoxtey $8:4 mion ùi ca with

2 wh to imlimt tho Pl
3 Spec TntDlI A sa of the tren of

th vaus Uus of C1 an In

4 is set fort beow:
5

ClIDt1
Adminrate Clai

Trent
Admlnisete Claimt wiU be paid in full on

6

7
8

the fatest of (i the EfflC" Date of the Plan. (il) upon8llow8l~ by .theBakrptcy ,Court. (ii) in the orinar course of the Debtor's
business or (Iv) such oth time as may be

9
10 Tax Claims
11

agrø to by the holde of such Claim.
Tax Claims wil be paid in full on the latest of
(i the effectve Date of the ptan, (i) upon

allowance by the Bankruptcy Court. or (ii)

such other time 8$ may be agreed to by the
holder of such claim; provided, however, the Deötor may eløct to pay tax claims in
deferred

.. ~

12
13

~

¡

ca paymets. over 8 period not

exceding six (6) years after date of

~ia§~!
~il dl I d¡ ;; .

14
15

asment.

iJ¡ll

Class 1: Priority Cl8lms

Prio'rity Claims wil be paid in fuU on tha
Effective Date of the Plan.
Savoir shall ret8Ìn it lien (to the extent nat

16

jjl - ~
. t!~~ ¡

Class 2: Savoir Techlogy GrouP. Inc.
17

~~2¡i

avoided), which lien wil atach to the

proceeds from the sale of its collateraL.

l~
~

18 19

Savoir's Allowed Seeued Claim wil be paid in full. The balance of any Claim by Savolr
wiii

be treated as a Clas 3 Claim.

20
21

Class 3; Unsecured Creits

Unseuéd Crediors wiU be paid in fuU,
including Iollat, as so' as praccable after

22
23

the Effective Date and after the payment of or reseration for all Alowed Administrative Claims, Allowed Secured Claims, Tax Claims, Priority Claims, any other senior Claims, and
post-Confirmation expenses of the Debtor;

providec. however, that said payment win be

24
25

made no later tha the latr of (I) thirt (30)
days after the Effective Date. or (I) upon
resolution of all Disputed CI&lims, including

Rejection Clalm$. Notwithanding the
foregoing, in th.e unlikely evant that there are
insffcien fuds to pay unecued Creditors

26
27

in full witi interest unseured Creditrs wiìi
be paid pro rata from available fuds.

~
1:'

28
LI,.

-2-

Di'.~IT'T

rruiøuwt
Sheholders of record on the Distbuon shall reeive a pro rati distbuon from
Date

available fu. as 800n lI practicable after

Administate Clairns. Allowed 5éCed
an post-Confirmaton expenses of the

(i payme of or reaton for ell Allowe
Vnscured crelms, any oth. senior Claims,

Claims, Tax Clai. Priorit ClailT~ Allowed

Debtor, an(iH resluon of all DisPed
Cleirr and Dlspted Intelut. The Interests

of common stock holders shall otwise bø cacelled so extnguish on the DiaJbuon
Date.

Holders, as of th Effeve Dat, of
outtanding, untonninattd options and

warrants to acuire the Debtor's common

stook shall recve nothing under the Plan and
their resective interess shall otherwisa be canceled en extinguished on the Effective Date.

~
ã, ". '~,~i', 14

~l~,~l 15

Th Debt belov thCoon oftle Plan will ret in the high and be recvci for, and ìs in the be ines of,CRliton and Eqty Secty Holde Acdi, the Der
urges al

.\l,.ldsl 16

~J~~il
)l~~~ir 17

~ i 1'2.~

elgible Crtors an Eqty Sec Holder I( submit their Balots in favor of th

Pla ODor beor 5:00 p.ni on May 3D, 2000.
DiJtion of

! 18

Pl Document&: The Debtor has ut the sece ofBmpt

~ 19 Clas A.on ("CA j IJ th ca for in da input and da ba genn for

20 . inomon re to be se on crtors an slolder. BCAhu al prded sece
21 re to notce prepon, priti and mag to crito and shareholder in

ths ca. The

22 De in~ toreBCA (or a siar sece ifBCA: is no åvaile) to prepare,

prit an

23 disbur the plan solicitaon pace to al pares in int The Debtor will pay BCA for its
24 sece in the ordi cour of

busies from fu on had in th es.

25

1. INODUCl
the

26 1. i Bite Tecolog Inc., a Caorna corporn ("Sit", the IlDebtor" or

27 "Companß) submi th Disos Staen in connecon wi the solicion of ac
28 oftheDBBTOR'S PLA OF REORGANTION da March Z7, 200 (th

n' . I:

"Plmi"). The

1.'"

-3-

CU'SDØ ITA11

1 Plli beg trtt to Creitors and Eqty Secity Holdea of the Debtor wi ths

2 Disoosue Staent Caita ter use her~ if not sear defed, ha the
3 meaing. asgn to th in the Pla
4 1.. ch 1 I se fo the ruea an proc under whcl ticia di

5 enties ma be rer¡a or liquida puant to a plan of rergizaion. prete to
6 cr and sholder for consderaon and approva. Confirmaton ofthc Pla is,the

7 C1ilininaton of that prce.
8
1.3 The Plan is beg propose by

the Debtor to efec an order liquîdaon of th
thse as and to prode for the distbution of the

9 10
11

Company's as to m, th vaue of

liqudaon proc to Cretos and Equity Sec Holder,
1.4 The Plan se for a propos for the sasfacon. dihage and/or cacellaton

I
jU'~ll d l~ l
~.:i~i~

:. ~

~

12
13

ofal Clas ag an Inte in the Debtr. Credtors and Eqity Sec Holder should
thorough reew

bo th Plan and th, Disclosu Staent beore decdig whether to act

14 15
16

or rejec th Pla The puroftb Diolos Slaai is to provide adeq inormon of
a ki, an in sicien de asCar as is rely prale in li¡ht of

the nat and hi
of holder of Clai and Inte of the relevt Cla to .

of the Detor and the condition of th Debtor's book an rerds, th .would enle a
hyothetca reanale inesr tyica

nm.
I
12

17

18

mae an inormed judgment about the Plan.
1.5 Befor the Debtots Disclesm Staent ma be use in connecon wi an
accetace or reecon of

19

20
21

the PLan tbe,Banptc Cour af a notice hea must hae

approve the DisclOl Stent ~ conta adeq ìnonon to enle Credrs
to accet or rejec the Ders Plan.

22 Equi Secur Holders and paresin intees to mae an inoimed judgmen on whater or not
23

24
25 26

1.6 As se fort in the Orer Apprvi Disolosu Staent enclose herth the

Ban Cour apve th Diose Sta The Couis approva of the Di.losue
Staen howver,

do not cons an enniem of the Pla by'the Batc Cour
1.7 Cre an Eqty Secty Holder shod re th Discoa S1ent an

27

1:I

~

28

the Plan in thei enti pror to voti by wa of

th enoseBalot,wluoh mos be complet

J.wp

-4

~S~ITAmt

2 2. DI
i an re.
3 2.1 nus DISCLOStJSTATEMCONTAIS INTION WICH

MAY

4 BEA lJN YOUR

DECISION TO ACCEPT OR RE 11 PROPOSED PLA. PLEA

5 RE TI DO WI

CAR. FOR TH CONVNICE OF CRDITORS AN

6 EQUI SETY BOLDER THS DISC STATE SU TH 1 TE OF TH PLA,Bt TH PLIT QUAL TH SUY. or AN
8 INCONSICI EX BETWTH PLA ANTI nlSCOSuø 8TA.'f,
9 TB TE OF TH PL AR

CONTOLLING. NO REENATIONS CONCRNG

10 TH DEBOR, ITS fIANCI CONDITION OR AN A8 OF TH PL AR
11 AUTORID BY TH DEBTOR OTHR TI AS SET FORTH IN nu DISCOSUR
~ ~ ~

12 STATE.
13 2.2 TH FIANCIL INRMTION CPNTAI HE, UNES
i 4 . 01'WI INICATE, IS UNAUDIT; IN ADDmON, BECUSE OF TH DEBOR'S

II

&1

' i' ~)1JUd8l ~..irt o1J

15 FIANCI UD'CUTI, TH INRMTION CONTAI Il MAYBE
16 INCOMPLET OR INCCUTE FOR TH FOREGOING REONS, TH DEBOR AN IT

~'IJ~l
~~~~I~

17 PROFEONAL AR UNLE TO WAR THT TH INRMTION CONTAID
18 HEREI is WIOUT AN INACèCY. HQWEVE GRET EFRT HA BEE MAE
19 TOENStJTHT ALL SUCHlNRMTIONIS

!

/'

§

FAIY :PBJD.

20 2.3 TH PROFEIONAL RERE TH DEBORHA VB REED UPN IN CONNON'WI TI PREARTION
21 IN~TlON PROVIED BY TH DEBTOR

22 OF TB DISCLOSUR STATE AN HAVE NOINDEPENENY VE ALL OF 23 TH INRMTION CONTAI HE. 'l' CONT OF TlS DISCL
24 STATE SHOULD NOT BE CÔNSTUE AS LEGAL, ,BUS OR TAX

2S SHOULD CONSTWI YOUR O~ LE COUNAN ACCUNAN AS TO AN RETE MA1', CONCEG YOUR CL OR INTT.
26 LEGAL, TAX

..
-5-

ADVICE YOU

27 2.4 TH SECU.A EXCHGE COMMION HA NOT

~
1:'D

28 APPROVED OR DISPROVE Tß DISCLOSUR

STATENT, OR
I:is DI STA1J

L1l

2 3. DEONS
4 rCfeience.
6 4, i IT iS IMORTAN1HT YOU EXB youR RIOH TO VOTE TO 7 OR. RE nm PLA. if

1 DET IF IT IS TRUTHFUL OR çOMPLEI.

3 3.1 Al defOI desbe m Seon 2 of the Plan ar incorp herei by

5 4. VO INIlCßONS
ACCEP
you ar or Dl be entied to vote on th PIa you ha bee sent a
8 Baltrmd inon for voti wi ths Pisos Statt Y oushould rea the Ballot

9 oaof and follaw th inon co th PIC$ uæ on the Balot se to you

10 with thii, Disclosue Staent.
11
4.2 To sili the voti proc Balots ha

be set to al known holder of

.. .. ..
~

12
13

Cla and Inte including Disput Clai and Disput Ines to whch objections ma

a
S'

be fied The Banpt Code an the Banpt Ru1eøprovide th onl the holde of
Alowed CLai (or Clai which ar deoed Allowed) and holder of Alowed Interest (of
re on the da the Orer Approvi Disclosu Stent is enteed or another da fi by

':dj ~ l

~~§iii

.:i l ii .
~
i:

14
15

16

the Cour) ar entied to vote on the Plan. A Clai or Interes to which an objecon has bee
filed is not an Alowe Clai or Alowe Ines unes and until the Banptc Cour rules on
th objeoon. The Banptc Cour may ~ra alow a Disut Clai or Disput
Ii to which an ob,ection ha be fied fo PW'ose of voti

:niJ¡;!i~ : ii ~'

~ II
:i

17

18
19

e

on the Plan. Therre,

20
21

although the holder of

Dite Cla or Dispte Intees to wbab 8t òbjecon ha bee

fied wil recve Balots, thes vQt wi not be coun uness th Ban Cou
teporaly allows su Clais and Ines for puos of

22
23

voti on the Plan.

4.3 If a pa in in is a membe of more th one C~ it wi recve a Balot
for ea Cla. IF YOU AR A MD OF MORE TH ONE CL, YOU MUST

24
2S

FI

OUT

AN RETUR ALL

BALLOTS SENT TO YOU,:rR YOUR VOT TO CQUN INUCH

26 27

CL AN ACCEANCE ORRBON OJ'TH PLA MAY BE VOT BY
COMPLETIG TH BAOT THT ACCMPAN TH PLA AN TH DISCLUR
STATE,

~
1;\D

28

AN RETUG IT NO LATE TH MAY 30, io TO:
-6-

bpi

i:'J1~aTATl

1

Mury &; Murr
A Prl'nâl Corp"atïou
Att: Janke M. M1I~Y, Es.

2
3

3030 U..se Wa Sui 206 Alo, CA 943100
Palo

4 IF YOUR BALOT IS NOT'RETU BY MAY 3O,:z00 IT MAY NOT BE CONSDER.

5 BALLO WH AR RE BU NOT PROPDYEX WI NOT BE.
6 CONSIDEI. BAL WHCH AR EXCU BUT wmæ FAl TO INICATE 7 EI ACCEAN OLL REON OF TH PLAN WI. BE CONSJOE AS

8 ACCG TI PL.
9 10
11
of

5. BJSTY OF TH DEOR
5.1 The Debr commce ths Chate 11 ca 00 Febru 2, 199 With the fiing
its Volu Pettin in the Unite Sta Banpt Cour for the Norter Distct of

;i

12
13

Calorna, San Jose Dion.
5.2 The DebtQr wa in the busiess of desipg. devoping, lice and sell

; I!
)1 ii~t

14
15

soare prduct ard ro1a maal for vaous Web ,site applicaons. The Dèbr, foredy

W'¡

heua in Scott Valey, Caorna, wa for in 1989 an bece a pUhlic ca in
Decembe 1995.

~J'i¡ll

16
17

nhi~
I
~ ~

5.3 The Compa wa origi formed to des devop an maet visliaJj~on
sOft produc for pena comput. The Compa commence shpments of its iiit
product Deltah. Bttheenofl989. Pror to 1996. th Compan derve substtial

18

19

al of

20
21

its prct reue frm licese of Detah cha an graphic so prct.

5.4 Como wi it ~on of the telog reui to develop
WebAma (a muti-med auor tol for the Web) in Novebe 1995. the Compan's
strte ha bee to re a sica and gr pertae of its revenues from the sale of

22
23

24
25
26'

Interlet soe-product Towads th eid, the Compan acuir teology to develop
Quokite (a Web si oronand managemt tool) in Dobe 1995 (reea veon 1.0 in

Feb 199 and inuc WebTools in Mách 1m, W~ in Jul 199. Quckrt
Deop', Edon in Sebe 199 and Qute 2,Sin Ma i 99. In Jul 199 ~ th

27
28

Compan acd teology to deelop Site2.0 whol wa reeaed in Sepbe

J:\ fM

1..

-7-

Dl"Df UAl'

1

199. an in Nòvcbe 199 th Co ac~ teolog to develop SìteMas 4.0 whol1
wa relea in Mar 1998. In Maroh'I998 th Compa also re QuokSit 3.0, an

2
3-

in

Ma i 99 the Compay téea th entee edon of

the Sitèweepcr producl

4
5

5.S In lur 1997 as pa of

the Comp's coui st to fo its

devlopm saes and in afort on In so prodct the Co.i sold a-

6 .r to it Del Gr so pro Wit the DeltaGrh sae. the Com's fu
1
8 9
10
11
~ .. ..

oper results dqded on th succ dev0pm intrcton an coer
acta of the Compay's In soft prodct. In Septeber i 998,

the Compan al

sold its V -Sea telogy an rela pa. In addition to fùer fo~ the Coan on
Inet so ~ th saes provide the Compa with much neeed liqudity.
5.6 .The Copan

fice it opeons pr thoug pri and publc saes

.

12
13

of eqtyse~ bowi under a te loan, the privae sae of debt secures and the sae
of

~

6"

~

the Deltah prouct lie. and other lited ast saes. Sinoe its incetiODy the Compan

~.llil.§,l.. i.!
~dt £§
~1 Jt'§l jJ .~?i

14

ha reved apro $24 mion in proc frm pri saes of stck converble de\1
and from the Compan"s tw public offer of public st. The Company in net loss
of $8,159,00 for the ye ende ~ber 3 i J 1 99

i~l ~ 15

16
17
18

and $2497,00 for the nie mon ended

~§~i~

8lbe 30, 1998, and ha an aculat decit of $24,334,00 as of Sepbe 30, 1998.

5.7 In lit of its dish 'cas balance (du prily to Hmite reues frm
ita newly ince produ), in May and Jue 1998, the Debtor signcatl reuce its hea

"r

19

20 coun fr 33 to 11 and sica rece it ox and operons in the area of saes
21

an'maet. In order to conse its lim remaining ca balanoes th Debtor shly
cued opeation activi sice June 1998

22
23

by, eon¡ oter thgs fuer reduci its non-

teology'hea coun (eliat saes and maetg personnel) and limrc .

24 marti exditu. In Decber 1998, the Debr sht dow opeons an laid off most
25

of itsrs emloy.
5.8 Du the it efor on evatng it st opo~ inludig a sae

26

27
28

twve (I2)"mot preing the Pettion Dat th Derfoou of the Der to ii thd pø or a

sae oftl Debtr's as. When it bee ~lea th th Debtr woU1d be unle to rase

J:Uii M J

l.wp

-8-

II'I.DI ir

i

adon inveen caita the Der inteifed itsefortoñn a po acsition
Du M. and Apri 1998, the Debto bean negoti wi òne such cadidate to intee
$O of tho Der's teology wi th copan's prduct an al held se high icw,
diseoll in whch the De introdce its de to merge or be ac. In Ma 1998. the

.,

2 cada. By mid-Mach 1998, the Deto deveope a taet list of liket cadida.
3

4
5

6
7
8

Der W8 in th th copa wa not in ina mer or acoi Also in
Ma 1992, the De cont i 0-15 additiona oompaesto inVe merer an.

acitíon oppoties. to no av
5.9 In June 1998, the Debr reed A1lian Par of

9
10
11

Palo Alto, Calora

(" Alan') a mer im acsition fu The Debtor and A11iimt deoped a st th
deed th Detor's as wlue as twfold:

(i) the Debtor's Inteet tehnology, and (ü) itl

;

12
13

sts as a publio compy. Effort ove the followg month focse on cont poteti

.~

'ã

oada th would bent frm both the techolog and publio corpore as and thus
yield tho

14

grea Va,hie for the Detor. Sever ooates we conta. dilWSiOIl with

n'luii " "dl
i~tJl.f ii~i~i~
I!

15

some ened. but not maal. In Aust 1998. the Debtr shft into the send ph
of it steg wher tw te were eslished - one te to focs on presentig its Inteet
tcclOØ to public soft copanes and the oter te to focu

16
17

on presetig the

r

18

avabilty of th publio shell to pnva compes Du Augut and Septebe 1998, Al

19 , cotaabut i 10 comi vi teephone and ined ou approXÍly si (60) ful

- 20 prtion pa. Seeral telephoe inews wer held du th tie fue. The
21

Detor ab cocice seous diol1 Wi and .rnded to due dico req_ Íìm a
public

22
23

compan in ìn the tchnolô¡y. StaBas then ma a:f offer and th prior
the biddig. Therea. the Deto and StaBas exte the StaBuc

oompadroppe out of

24
2S

Agt

5.10 In la Scptebe 1998, th Der CQeø seous diSOOl with and

26 re to due dili. rw of Sawir Tecolosy Grup, Ino. ("Savir a publi
27

comp inte in ac th public shll in a rev merer wi one of it dion.
Savie ma a $~ 50,00 bridge loan in December 1998 to provide the peor with neeeç
bpi

~
L"D

28

-9-

OBI'.:snuia lIAni

1

fial resur to colet the deftive documenon proces with regard to the proposed

2
3

tnn. Ab Sair's supprt th Debr wod ha ha inoien caita to su
operons and se shlder apov ofthc tron Sawk mae an additona $50,00

4 loa to the Debtor in Janua 199. Hoeve, in mid-Janua 199, the Debr was inormed
5
th Savir would no longer pune copleton of th tron:

6 7
8

6. TBSAClNS WIH INERS
is thc Vice Predent

6.1 Jefey F. Ai ("Ai is thc ChiefEx Ofce an Shaon Fugi ("gitt) FinOpons of the Debt. Followig teraton' of al oth
of

9
10
11

emloy Ai and Fi ag to as the Debtr in the ordely liqudaon of its as. Ai
an Fugtt negtiat the sae of the Debtor's intellecal proper to StaBas which rete in a'
beneft to the es of more than $8.3 mion in oa Ait and Fugitt hold clai ag thc

~.!~ii'

i

~ ~ ~

12
13

Debtor for unaid waes emloy benefts exen reiburset an lJanoe whch are in

par cled as Cla 1 Pror Clai an in'par as Clas 3 Gencn UmeedCla as
pravedin th Code. The Plan provides fortl rejecon of

14
15

th Ait and Fugitt Employent

Jldl ll~i-.i!$~t ~.~ l i .'
~~

Aaeets. As a restan olai. by Ait and Fugitt uner the Employent Ageeen

16
17

beine Clas 3 cl and recve the sae tren as al other gener unseed clai.
. Pre-petion Cla held by Ai ar for: (i) vaon pa of $3,390.44 and (ii) se pay of
$165,000. Pre-peoQ. Clais held by Fugi are for: (i) vaon pay ~f $6,346.30 (of

18

which

;

19

$4,300 is a priorty clai) and (li se pay of $65,000. Both Ait an Futt have bo paid,

20
21

and wi contue to be pad, foe popeon waes an.

7. SINI ß' D)JG CH 11
7.1 SWBM' Swe. On Marah 17, 199, the Debtor conswatedthe sae ofits
inteectu pr as to StaBase. Th intial ag pu price paid by StaBas
cons of62S,OO newly issued and intial uned sh of Sta Bas

22
23

24

coon stck.

25 Under the Staas Agreeent, th pu price wa subjec to ad at the clos of the

26 as sae to case the agegàt esmatd vaue of thé Staas coon st to be not leas
27
th $500,00 an no gr'tb $1,500,00. Undec th formuI the acal num of ii

28 cotu th pu price wa 625,000. The si we subject to a 6-onth locp

JI I:M

bpi

-10"

DBBTOll& DI ii aTAl'

i
2
3

peod, In adition, an esow fud contg 1257000 of the sh was in plac for a peod of

si (6) month to alow for inemcaon cla by StaBas The sha wer eventually

4
'S

Bas Thei, th Debtor co not liquda the shar in a lÍe tron. No mor th fIve
rO frm the es fud. no inemcaon ola hag be ma by Sta pcec (5%) of

the pròr bu_da's trg voRuiicdn the.sb cod be sold on an given

6 7
8

da. Al, in cojunon with the sae to StaBas th Debtr sogh and obt Ban
Cour apva to ase tld asgø to StaBas nums executry contr as reed by

th StaBas A¡eecnt
7.2 Sae ofStBuo $tg. Followi exiron of

9
10
11

th locp an esow perod,

the Debtr sough Cour approv to ae th shes by wa of motion to ax the Debto's
abilty to liquida th shes in view of the

dramc pnce increa per she whi bega in

. I.
:i~¡i¡¡l

~ ~ ~

12
13

Deer, i 99. On or about ~be 21, 199. th Cour ~ it Orde (the "Order

auori th De to scl the shes änd to employ First Se Van ("Vanpe')
as broker in 'oonnecon with the sae. StaBas reted a rit of fi refsa with resec to an

14

äljl1 ~ 15

propo sae of the sh for a perod of eigh (18) month af the olosig. The Debtor
soug an obted a wave fr Sta

16

Bas of ths right and pred to sc the shs on
the tie the

J ll j~t~~¡d

17
18

opa ni As a poin of referce on Febr 5, 199. imed pnor to

Debtr :fed its moton to sell its ,teology assets to StaBase in exchage for the shares. the

.~'r
r!

, 19

sh were ae at a $1.75. An inteet seh on November i 7, 1999 incat the las trade

20
21

on th da at $2.41. The Debtulti soId-e shes on the open mar du the peiod
of J8lua II, 200 to Jan 18, 2000 at pri ran from SI1.25 to S14.62 per shae.
Proc of

22
23

the sae were approxiy $8.365,840. As provided in the Order, Vanper
tw cets (2p) pe she (i.e., $12,500).

reved a comisson ra of

24
25

7.3 Auc Sola.

On Ma II, 199, the Ban Cou enteed íts order

authori the Debt to sell ce f\ eqpment ând otec pena prpe as ~

26 aucton. FolloW Banpt Cour approva the Detor hi AR Pagan & Co. 27 \' Aúotion as the Auctonee. The aucton sale was conduc on Mach 23, 199. The
28

Auo()wu pad ex ofS7.500 (costg ofSS.OO for adver Md$2500 for
t.wp

lt: L~ s

-11-

DI'l DJ ITAT1

1

labr) plus a te pe (10%) commsson of acal ooHee bid saes. In additioi th

2 Auctonee wa, ened to chae a buer's premum to aucton buy. The ne aucto~
3

proos wer $39,00, A díspute ar redig th dispition nn actig for ce

4 cubices th wer pa of the auaton. The Debtr conds th a buyer wa prepar to pa
5

$4,300 for the cuicles. Th auetce, ba no recllecon of such a buy, as th
to tae them withoumnov chges Given the
su involve

6 ef to So th cuioles at auon we uncc and the cuicles wo rcove frm the
1
8
De's pr by a pa wi

coct recllecon of

the

paes as to the fact and give the nomal

the

9
10
11

Debtor deted not to pure the ma an fuer as it would not be cost efecve.
7.4 R. ofExeo Cont an Upexir Le. On Mach t t, 1999.

the Banptc Cour en its order auorig the Debtr to reec it (0 non-residential re

~ .. ..

12
13

prop lea with Carbonel' Cr Asocates (the "Lejan (ü) non-reen re
prope sulea wi Fault Linft Techology (th "Sublea')). Thes iea~ to the

~

:'

14

Debtr's former buses prem in Scott Valley. Calorna In view ofth StaBas Sale,
thes premise wer no loner neeed. On May 18, 1999, thø Banptc Cour aIso ente its

t§j!
ã :!~~

J ~"'IL g

~ji' l

15

16 17
1&

order autorig th De~r to rejec it equipment lea with GE CapitaL. Firs Ala. Dell
Ft Serv. Pitney Bow Cret Corpraon and Spri Teltmagl, Inc. (collecely,

~f~ i ~~~iil
~

r

"Euipment Contr. An cla for dmes relat to rejecon of the above-reerce
Le Sublea and Eqpment Co wa requîed 10 be fi1ed on or beore Jun 1, 1999.

19

20
21

7.5 Blu Compse., On Ju 8, 1999, the Banpt Cour entee; it order
auorg the Debtor to comprose its controvc with Richard B~ dba Knowledge

22 Vision ("Blum"). Put to a pretion agt, Blum sold the Debtor a computer
23
dervave tecolog an product
prog know as Power. Vison toget with an

24
25

(h collecve "Tëcolog~ The Deb ag to pay a fee of $2S0~OO plus a se

pecet (7%)ro. Blu reed a Ii royal tl licanse to the Tciology, ag to

26 prvide conati se for th ye at 'an additina hour fee an fuer ag to a

27 non-c cla fo th ye. The agent a1 provded tl shoud Der ce
28
the ageeent al ri redi in the Tecolosy wí two ye of

the Tecology

A'6 1:

t..

.12.

Olta'IIJBTA1D

i Would rev to Blu. ~ium claed th, th Debtor owe hi approxi$l,500 in
2
3

outs'royes and fuer claied th ownerp of the Tecolog rov to hi as a
røt of

tho Debto's faur to mar the Teology as reuied by the agcm The Debr
it øiet the Tecolog at ~e sa although redce level as its oter

4
5

coded th

pro~ althoug no ~es re for the las one an Oie-haye. Follg Cour
apov the De and Bhm se th diut wl Blum

..

6 7
8

paid th De $2500 and

wawd øi midaI dai agnst the Deb. In re theDcbto :rli ita ri in the
TechnoloiY to Blu.

9
10
11
'"
'"

8. nlSTON ANYS
8.1 ProjcçDiJon to Cr an Sheholder.

;
~ .. ..

12

i
:ld¡~~ j

13

i. ,E-I Ci cI

ca BaI (as of Ma 31, io)

SS,41l,7S2

~~
$8,418,752

14
15 16

~lj§i-i l" !
: lq:!~..i~ ~ ;~ i. a .

dI ii th) PoJXon.op CO wi dó an~, di roean ex
:: ~ coincg U.s. Tx -. BCA an
Ot .AdiiUpW'ativc CJ;

Sø TedGm (1 3/1Wl pl $54.79 po

$28,821+
S57,OO

m8,82I+
$S7,OO

$20,00

$250,00

j1i~l.

17 18
19

;
~

Liila Op Bx M
Th Cl (ciat

$50.109

$$..109

$15,00
$I,1oiOO
$2234-

$75,00
$1,102,00

20
21

Pr Cl (cxDg cm cl)

$24
$2,00
'1,00,00

Ei Cl

22
23

Go1J cl
Po.Pc In on Cl at 4.584%

$240,00

$1,50,00
$120,00

W.09

To Pr Cr ad Cb II C1

24
25

Pr.J cu øa fo díti lø ~
Aaumptii
De'

$3,615
$4,793,588

UmaH
$S,32SU

26 Ca 1: Includ slowanoe of diute cla in.fu Bas on Proofs of Claì fied and the
27

Ii Scedules the"Oobt esmat th the gross amun of prepettion uned

arodor clai isapor., . $ $11.,~500,OO. Th Debtor ba fied numerUB objoctons

28

Deb is indions wi thes crtors in an efort tocolv 1h dism'porton
of

to als. For di" di cl whe no form objecon 1w ye bee fied. tho

tho cl Without lition. At ths tie, tbe ar approxiy $.500.00 m "
~13-

JM J:\

disput pieettion un clais.
L""

i:l DJ rtAT'

.1

Cas 2: Inudes only ge unse clai mnoun Detor beieves is ow.

2
3

nm ABVE DISON ANALYSI IS AN ESTE ONLY. ACTAL

RETS MAY DIW MATELY FROM mOSE ESTE ABOVE TH AR

4 VAROUS FAcrORS WHCH MAY CAUSE SUCH REULTS TO DIF FOR EXLE,
5

6
7
8

TH DEBOR DlSU' SE CL ASE. BYCERTAI CRlTOI' AN TH ÐØR CANOT'PRICl TlEX TO WHCH TI CLS WIL
ULTITEy BE ALOWE. IN ADDm~N, ON TH PEnnON DATE TH DER WAS

A PARTY TO NUOUS EXORY CONTcr AN tfIR LEA. WlE
SEV EXORY CONTCl WE ASD BY TH

9
10
11
~ ~ ~

DEBOR AN ASIGNE

TO STAR IN CONNCToN

WI TH'STARAS SAE, CETAI RE PROPETY

12
13

LEAS AN EQUI LEA WE RED IN mE COURE OF CHR 11 CAE. AN EXORY CONTCl AN UNIR LE NOT ALY
ASnM, ASUM AN ASGNE, OR RF BY TH DEBTOR, WI BE DEEME
RE UPN CON'TlON OF 'm PLA. AS SUCH

t
~1jli!

14

IT IS IMSSmLE TO

~iJ~~..l ~ ai §
ljJ i~'

is
16 11
18

PRICT TH AMOUN OF

ANY REON CL THT MAY BE ASERTE

AGAIST

TH BANlJCY ESTATE. IN CONNON WITH TI DEBTOR'S RECfON OF TH

~~~~i~

LEA TH SUBLEA, AN mE EQUIME LEA, TH COURT ENTE ITS

!~
~

ORDER RlUIG T.IE PARTI TO SUMIT Tl CLMS FOR R.ON
DAMG~ JI AN,

19

ON OR BEFORE JU 1, 1999. WI REPEC TO TH RE0N OF

20
21

LE UNER TH PLA, RECTON CL AR REUl TOBE FIED WITH THTY (3) DAYS
AN OTH EXOlV CONTct OR UND

22 FOLLOWIG TH CONFTION DATE IT IS ONLY AT THT TI TRT ALL
23

REON CL WI BE KNOWN. AN ATTMP BY TH DEBOR TO QUAN
TH TOAL RE0N CLAI PRIOR TO

24
2S

THT TI WOUL BE SEROUSLY

MIING. AN ALOWE REON CL WI BE TRTE AS CL 3
UNSKC CL UNER TH PLA AN

26

PAI IN ADVANCE OF AN DISTRUTON

27 TO SHOLDER. OTH FACTORS WHCH MAY CAUSE SUCH DISTRUTON
28
REULTS TO DIFINCLUDE,BUT AR NOT

LI TO, TH FOLLOWIG: (i) TAX.

lM L'\ ~

i-w

-14-

tlIITOB:S DØSTAT

1

CONSUECE RETIG n.OM TH LIQUIATION OF

TH DEBTORIS ASET; AN
IS NOT

2
3

(ü) TH EXTECE OF ADDITONAL CL OF WICU TH DEBR.

Cl Y AWAR WH TH DEBR EX THT PRO WI BE
AVAILE POR. DI$UTON TO CLAS 4 SHOLDER AP SATIJ'G ALL
KNOWN CL, T. CA BE NO ASURCE THT TH AMOUNWICH WIL BE
.

4
5

6
7
8

AVAILE FOR DI8UlON WI BE AS ISTE ABOVE

8.2 Otsr Å9
A Du th cour of the Ch 1 1 ca tho Debtor ha aupt to
fi a buy for iü coipra shell The Debtor's efort in ths reard we unuo.
B. Ba on its es of

9
10
11

th Claiùi the oa the Debtor believe th

Cr wi

be pad in fu with inte As such the Debr

ha yet to un and
acon ir tl'evClt th tb:e

~ '"

12
13

complet a thoroug aiysil of

the Avoidace Clai and the pot defents in respè

i

~ ..

thereof Hower, th Debr reser the righ to pure ar su

14

. De deWes th in an acon is ap an beci to ·

the Banpt Eø

~ ~l ~.J¡hll
'l!~-I~

i'" l 15

The, en of th Confon Order sh not conste .re juca or oterse bar or inbit
th ,prseutoI of the Avoidance Clai by the Debtor.

~V;.!. ~~~

16
17 18

8.3 Çgmg St The Compy ha outdi approxi 8.5 mion
sh of coon st he by approxily 1,400 sheholder
8.4 Stck Dmoi plan.
A The Der ba th

.'1

19

20 21 22
23

(3) emloyee st optionpIa 13 se fort in (ì) the

Roatem and Amen by th Enet of th Deoin In. 199. Key Emloyee In
Stoc Option Pla (th

"199 StoOption Plan"), (l) the Ddoi Inc. 199 Non-Staoiy

Sto

OpnPla (tb "199 Stock Optoi PJa") iu (iii) thDeoin In. 1995 Stock Opon

24 Pla (th -1995 Sta Op Pla").
2S

B. Th 199 Sto~ Opon Plan and th 199 Sto Opon Pla l' th

26 27

emoyee pa to exere thei optons. not laer th si (60) das (an in lOme 0Q th

(30) da) folI taon of enloy. Th De b~es th th onl outs
opt if web th 199 Sto Opon Pla ar thse of

~
l:'D

28

Futt, Infi as th opON ar
-15-

i.""

Dl" ti iTAta

1

I~", Fu don lIot.in to ex th Th Der tb be th the ar no
outs opon ri uner th 199 Stock Option Plm

2
,3

C. Th 1995 Sto Opon Pla wa dive, in two se eq progr:

4
S

(1) th Dí opon Gr Prgr (th "Dina Progr") and (il) th Auma

6
7 8

Opon Gr Pr¡r (th "Au Pr-). Th Dietna Prgr prde th opton oudin wh an em ter re exsae for a peod det by
th p1i ad. Th Auomac Pragr ga non-eloyec di twve (12) Ilnt
tbnowi teon of

boar sece to' excb th optons. Th Debtr beeves tht the only

9
10
11

outsg option ri uner the 1995 Stoc Option Plan are those of Ait an Fugitt.. Inof 11

th op' ar "u wa. neth Ai nor Fugi iJ to exci th opti ri. 8.5 w'1J Th Ðebto~ 543,413 wa outdi subjocto vaous
erinon da frm Novebe, 2000 tò Ocber. 20.

~
0:

1.2

s:

.

13

9. DEBClON QF PLA

III
:: .i~ i

14
15

9. i Ge.
A Th followi despton of the Plan is a SW on. Al holder of
Cl an ln should rea the ac Pla whioh acanes th Discos Sten

~P§il
~iii~

16

jlbU

17

B. The objec of th Pla is to imlement an ordely liquon of the
Des as an to prde Credrs and Eq Secty HoLder with the highes possible

18
19

r

recove on thir respece Alow Clai and Alowed Intest.

.' '

20
21

9.2 Qlucam ofCI an Inte. Under th Pla. Alowed Cla and Alow In ar subjec to th folloWi clffcaOIl uner th Pla:
ClW 1. Prorty Cla.
Clü 2. Alowe Seo ClaíofSavoir Tecosy Gr, In.

22
23

24
25 26 27 28

Clas 3. Allowed Unseced Cla
,çias 4. AUoweIncs (ÒOon stok) of

Eq Sec Holde as

of the Disbution Da.
Ç1 S. Alowe Inte of

th holder of out unte
th Debtor.

options wa anor otec rits to ac an Eqty Seounty of

i:1O

Dd

¡,wp

-16-

DB'I~lIAni

...

1

9.3 Peagti and Tre¡t ofunoas Clajma,

2
3

A Alowe AdmigjKtvc Claimi, :e holder of an Alowed

Administve Cla sh reciv paent of such ~ in ~ in fu upon the Lat of (i)

4
5

th Bfoove Dat (ü) íf such Claí is a Di C. upon alow of IU Cl by a

Yma Or oftb Ban Co (ùi) if su Cl is inet af th Petti() Dat in th
ordiar oo oftheDets busin_ wi1h su tieaa paent is du puuat to th
te givi ri to su Ci_ or (iv) such other ti u ma be agto by the holde of such

6
7
8

Cla. Ai reues for alowce of an Administve Cla pur to Secon 503(4). of the
&ipt Co; othecth by the Debs Profeona an the U.S. Tru, mus

9 10
11

be tied

wi te (10) da followig the Bfecw Dat or the holder of su Clai wil be foev

b~ fr BJ such Cla or rc an payen on acwi of suchCl.

.. ;t
ií

12
13

(i) Prna Fee Du the Detor'sCha i 1 ca, the
Banpt Cour ba apved the emloyent of the la fis of Mur & Muray and
Wilson Soiin Goch & Rosa as baptc counl an specia coun resvel, and

jßBfi 'I:ifii l
1~ 2i ~ :2.i~r3:s
la1

14

is Prieewaouseer as acun for the Detor wítl compeon to th ext alowed
16

by the Cour to be paid by the Debtor. It is es th 88 of th Gonfon Dat, fee and
exeIl of apxi $200,000' will be collve owe to the Debtor's profesonab

PF1l
e
ri

17

is
19

'usg th confn of the uebt's Pla wi be unnt. The Dec's profoson
anoipae additiona A.die Cla relat to iilenaitaon of

the Pla the liquidson

20
21

of an reining aa Disbuton to Credto and Eqty Sccwity Holdera. Clai '
objecons pottial Avoidance CLai and:f adon of

th Ban Ese.
fee saedera from a

22
23
the U.S.T:puto a

(ii) Ban Fe. Bmipt Pee arc payable by the Detor to
qu

mium of$2S0.00 to a

24
25

maum of $1 0.00.00 deêtg upon the díshuronts by th Debto ín a gi quar.

Banpt Fee are reed to be paid un the ei of a fi decee closi the Bantc
Ca. .

26
27

Ban fe ar esat as follow: $250.00 (11l Qu 200), $10,00 (2iiQuar

200). an $250.00 (3N Quar 200).

L.-

Ji

28

(üi) loPettion ODdor¡ apd Tax E¡. Tho Der shal
1.wp

-17-

OUrolllll) rlA1'

¡.-. 'cotiue to pa it norm opc cx li th ordi co efbU8es. In addition,
2 Carboner ~ the Dobtor' 8 landlord sh be paid its allowed adstvc olai of

3 SSO, 1 09; an th De sh pa an an al clai relag to taes døtcd to be owe

4 post~on as a consoe,ofthe liqudaon.
S B. Tg QatDP. Ea holde of a Tax Clai wi be paid in fu on the la

6 of (i) the Efec Da of th p~ (i) up aloo by the Baptc Cour or (i) mob 7 ot tie as ma be ag to by the holde of su ola prvided h~, th Deto ma
8 elec to pa ta olai in defer ca payents ove a peod not ex si (6) yea af

9 da of asesmen However, in no event sh the holder of a Tax Clai be paid pror to the
10
11

pay in ftl or~on for Alowed Seed Clai an Al~ Cl ened to
prior pumt to Secon S07(aXI) thugh (a)( of th Bantc Code. As of

Sepbe
Equalon. Ths ta

.. ~ ~ ..

12
13

2, 1999, a se oftl. recrda of

the Calora Secret of Sta' clsolo8é one (l)exsti ta
the Sta Board of

li on th De's preptionprpe infavor of

l'

14

liil in the amwi of $13,254.48 wa pad by the Deb preettion and the lien sated,

Ujli'

15

The Debtor cu esma th it ha preption Tax Cla of $750.00, plus applicale
inte and petics.
9.4 Upim¡ CläThere at ri ol of

16

.jlm~ ~~ii t
"1f4
~

17
18

Cla and Inte wh are no

imai unde the Pla.

19

9.5 ~ an Tre ofJm Claes.
A. Clas 1 Cl1ims (Por Claim,). Eah holder ofa Clai in Clas 1 sh

20
21

rece paent in oasb in fu plus PosPeton In on th Ef Dat. The Detor
cu esat tb it ha prepettion Pnority Clai in the amount of Sl 1~2S0.

22
23 24
25

B. elgs 2 Claim (Say TeclaiY Grup. In)- The Cla 2 Clai of

Savoir is ba on pition loan an adce in the proipal amoun of approxi
$200,00, plus inte as evden by ce note, se agents and UCC- 1 ficin

26 stents. Inofa as Savoie's fi fioing stent wa fied apprxily twcnt¥-eght 27 (28) da af disb fu Savoir7 s lien with reec to its fist advace wa, intially, in

Ji
I:ID

28

bon fie disput. Howe. bec th~ lidaon proce avle for dibuton to
1..
-18-

DII Dl8 1T11

crrs ap to be mor than adua to pa al cred in fu with int8 it now appea

th th di it mot Sav sh re it81i to the ex not aVoidle whch lien wi

at to th proce from th sae of ita ooat 8aorr's Allow SecedClai wi be

pad in :f on th.lat of (1) th Efti Dø (n) te ,(1 0) da follg en of a Final

Orde alow it Cl 2 Chû or (iii) such da 81 ot ag be tho Der an
Sav. Th bace of an Cl by Savoìr wi be tr as a Clas 3 Cla. Savoir' 8 clai 88
of

Ma 15,20 (.iudS pral. in at' fee and com) is aproxi

$23)821.00. Savoir's cla wi contiue to aoe pe clem intèeat therea at thera of

$54.79 un pad.

C. Cl 3 Claim' CUns Crjtrs.. The pretion gener tu
Cla ui ap.the Debtor ar ap07y 51,500,00.00 u of the Pettion Dat
(exclud R.ooon Cla). Of

ths anoun th Do diput approx 5500.00.00.

The holde of Clus 3 Alowed Unsed Clai sh ~w payent in cain fu
inudi Pos-Pettion Inte as soon

as pQJcale a. the Efecve Dat, but in no evt

lai th the la of (0 th (30) day af th Eff Da or (li) upon ~lution of al
Disp Clai i.lu~ Rejeon Claiprvidt hoer. no payen

sh be made to

membc of Cla 3 unti af the pay of or reon for all Alowe Adve Cla Allow Seo Cla Tax C~ Prty Cla, an ott2 seor Clais. and
post-Confiron ~ of implementig the PLan widig up

the afais of the Debtor and

clos the Banptc CI In the ui even there are incient fuds avaable to pay
Cla 3 Clai in fu with PosPettion In as debe herein holden of CI835 3 Alow

Uns Cl sh be pad pr ra fì the fù avle for th payent of Cla 3

Cl

D. Cle 4 Inte (Cnmmon St). Ea aaty Se Holder with an
Alowed Cla 4 Inte as of th Dîsbuon 0. sh rovc a pro ra dibution

from

avable fi 88 so as prcae af (i) th paen of or reson for al fiowcd
Admist Clai Alo- Sec CLai Tax Cia Pnority Clai. Alowed

Unsec Cla an oth s.or Claims, an post-eon cx of imlemti the
bpi
-19-

i:mnm:, DIaTA'l

Phm wi up th af of th Debr an c10sth Ban Ca ai (ü) f41ution of or reeron for al Diut Cla and Dispute Ines. Al Cla 4 Ines shal
oter bccaceed an mred on th DistbunDa.

R aM 5 In (Qgw an WlIúÙ. The holder as of the Efec
Dat of outding unteinate optons and waants to' acqu th Debr' 8 common st

sh receive no1h unde th PIa and thei re inte. sh othoise be caned and

exshed on the Efecve Da.

9.6 MePor Enuton ofthPlM.

A Liafon Proce; Rtma;njn¡ AÆ Proo from the sae of the
Stao ~ the auon at th Blum compmi wil be the pri source of fus for
exon of the Plan. Any

ot Ul afthe Der (e.g., Avoid Clais) shall be

liquida as appropriat, ex for those aø which the Resonsble Pern detes to be
buenme or of inooiiti vaue, which as wi be abdoed.

B. Diurent oiFuds. The De sl ma the pa to al
crr¡ wi Allowe-Cla. The

Debr shal wi trer the bace offus dClgnme

for sheholdes to the Tra Agt with appropri inctons frm the Responsible

Person

di th Traer Agt to mae a pro ra distbuton to shlder of recrd as of the
Distbution Dat.
C. R.Qosible Pern.
(i) Ar shl be desgn as the Reonsible Pern. Tho

ResoDblePern sh be compe on an hourly bass at an hour rat not to cx
$200.00 frm and af th Effecve Dat. Th Rca~ble Pern ma, in his dieton.
employ such other pt0D as ~- be nec to as in the imlementaon of th Plan the

liquon of my rening as DiJtbunsto Crto an Eq Sec Holdes,
Clai objecon poteti Avoidmw Cla and fi adon of

In th evt th Ait is unle

to see as the Resonsble Person, the Debtots Board of

the Bantc Es. Dirrs

wi appoint an individual to see as the Resnsõlo Pen.

(n) The Resble Pern sh cotiue to liquda the Dcbtts
I.,.
-20-

DØ'SDl I1A11

lreaining ii lMma abandon suoh as as the Responsble Perdêkea to be .
2 burdeom or of inconsti va to

'th Baotò Es. The Responsble Per~ ma

4 un Seons 510, 54 543,54. 545. S47~ 548 an 54 .o

3 ciro an cl an Cl of acon in fà of th Ba ~ ~oludi an acòn the Ban Cod.

S (ii) The R.Jlble Pmonma rdew and objlò to Clai and
6 In ente in coromi to alow an sasf Disput Cla and Diut lnes

7 and Sèc ai liquda my clai or ca of acon th the Der ma hae ~ a thd

8 pa.
9 (iv) The Resble Person Bb reew and apprve the Distbuton
10 amui to Crers at to th Traer Agen (on be of shlde of ie u of 1be
i 1 Dibut Dat) and sh be resble for ma or cag tQ be mae, Distbutions

~ i 2 purt to the Pla

ã 13
i-

(v) The Reponsble Pern sh be resonsble for doing al th

. j~.J~l, ã! 14

ti88l an appropre to imlemthe Pla an fa Distbution, to wi up the
entr of a fi decee an to fie suoh reort as the Ban Cowt ma reqir.
D.

U¡t~1 15 a:oftho Debt. to fie the Debs ta ret to fonn dilvo the Detor, to move for d~::¡f!!

~r;dil 16

j~U~ 17
as abadonment

ßx Pr for Çnjw of Coi. Sa mid

! 18 Abanclts. 1' Plmi prdes for an exit approva of poonatn aaes of ~ ,of asse, and compromise of Dispute Clas and Dite Intees. ~ 19
20 Noticc of in saes abononta or comPomi wi be se on Savir. the 20 la
21
un ~edto the U,S. Tru and thos

pares who ha reqes spal notce Th

22 propo sae, abandotien or coinomi deacribe in such notice ~ becme tí and
23

bin withut fuer Ba~ Cour approva unes a pa in in objec with te
(10) da of the

24
2S

notice.

E. Unpaiec Pr. Distbution chec reed or not preste for
payent withii (90) days will beome void and the holder of

26
27
28

the Clai or hitees to

whomsu Disbution wa ma foei al rights to the payent an an fuec Distutons.
F. Prp,. Th Resble Pe ma employ such prfesiona. as
Lwp

J:M~ I ID

.21.

.D1I DI iTAt1

1 ma be nec without fter Banptc Cour approval. The Plan .alo provide a

~

2 ~ for profeon to reve påy of fee and ex on a mon bui and for

3th reslution of an disp fee or ~ of profeo.al Presoru s1 not
4 oter be re to fi aplicaons for Cour apva of pos-eon fee an

5 ex.
'6 G. DiutQn ofCoraoti Put to authori cota in Secon

7 140. of th Caor CoiorolUCoe. the Debtr sh be disslv and it co
8 cx teinated wiout fuer corpora acon upn the en of a fi dooeo in ths ca

9 purt to Rule 3022 ofthc Banpt Rules The Confon Order sh be deed an

10 or au an diec th Resble Pno to fie a ceca of diølutíon as
11 reqed bySe 1401 of

the Calor Coromtons Co an the Ruonsble Per shl

12 fie suoo ceca concu'with the re for en ofa fl decee.

.i

l 13 10. EXORY COS AN UNIRD LEES
14 10.1 Astion of Exry Contrao. Except 88 previousl provide by
is Ba Cour order, no oth extory contr or unexir lea wi be ased by the

~, ßII!
:idt¡a; !l

~l,J~ll 16 Der.

~! ~2!l i 7 10.2 RøceQn QÍBuO' Con anQUneed Le. Without adtt the

! 18 vadi of ~ oter eXxy cont or unexir l~ an exry oont or unex

I 19 i- no _ly assu un tI PI or otl.. iied (an as whor Dat 20 aplicalo) pu to pror BantcCowt order, sh be rejec as ofthc Bfeee
21 subjec to Secon 10.3.

22 10,3 Tr!Mt ofEx Gttsan UniXir Le. The Dér reryes
23 the righ to apply to th Bapt Cour prior to Coiion to ase, 8Se an assign or
24 n-ec purt to BMktc CodciSecon 365, any

an al cotr th ar extory and

25 lea th ar un Al exto contr and unexir lea of the Debtor th arc not

26 (a) aa or ased and 88cd prior to Coon. (b) the subjoc of a pendi motion
27 to ase or ase an asfiled pror to Confon. or (e) ased or assumed and
28 ,aagned pum to the te of

th Pla ar hereb rejec by the Debtr. Confon or the
-22-

lM~ l-l

1.wp

Dl'l,I:STAnâ

1

Pla sh be dee to constute Bate Cou aprov of such rejecon,

2
3

10.4 Reìon Cbiim§ Rejecn Cla sh be o1afied as CIa 3 Cla A. In.connon wi the Debtor's rejecon of the ~ th Sublea an
Rojeoon Ci~u~. on or befor June i, i 999.
B. Wìth £cspec to the rejec9ß of any oter extory 'cont or

4 tho Eqpmen Le. the Cour enteed its order re th pares to submit their
5

6
7 8

unexired lea under the Plan with ~ (30) day followi the Bff~ D~ the holder
of a Rejecon

Clai (not subject to Secon i 0.4.A abve) sl fie with the Banptc Cour

9 and se on the Dcbtts counel a prOQ ofClai evidencig su Rejecon Cla or be
10 fore ba ftom',Zl any BU Cla Or recivi an payt on acunt of 5Uh
11

Clai.

i
i; lt e

.

.. ~ ~ ..

12
13

EVENCE OFEOUISECU OBJCTIONS
11. i Time for Fig ProQfs ofCJai Proofs ofCla sh be fied with the

, . 11. PROOFS OF CL;

14

~lilfl

is Ban Cour no lat th the Cla Bar Dat.
16

Jtl'¡ :ii'~i~i!
g â

TR
t

11.2 Evides, ofCf OfIn.
A. As BOon as prcalc afteùhe Distbuton Dae. the Debtor shal obta
frm the Traer Agent a list of al Equity Securty Holder of recrd and their respeve
Inte as of the Dibuton Date. Said li sh be conclusiely presued to be complete and

17
18

19

20
21

acur in aUrCfpec The, Detor, its profesonas and the Responsible Peron shall be
entitled to rey on sad lit in conneconwítn aiY Dîitbutions to be mae to Cla 4 Inte.

22
23

B. For purses,otan lìbuon onder the ~li th Detor and the
Resnsble Pecson sh hae no oblion toreo~an uaicr of Cbi or In

24

25

oc on or af the Distbution Dat. Tho Der, its profeonas iU the Reble Pern sh be entitled to recgn an dea foc al pwp wi onl those claílders of
record st on the, stk recrds rned by the Traer Agen,as of the Distibut90 Da.
C. Th Re.ponsible Pern sh ca th Debtor to mae

26 red st 00 the clai docket maitaed by the Bantc Cour an those stkholders of
27

28

th payments to

~~ ~'D

1.Wp

-23-

ÐB'S~ STA1'

1

aU crito wih Allowe Clas. The Resnsble Per sb al ()Be th Debtor to wi

2 tre¡ the bace ofñi degn for s1o1er to th Traer Agt who wi be
3

inot by the Rensòle Pern to mak a pro ra dibuton to slolders of recrd as

4 of th Disbuon Da.
5
11.3 TIQlfo Pi ubill. An obecon

to an Cla or liteat sb be fied

6 7
8 9
10
11

no ia th niet (90) das af the Efecve Dat.

i 1.4 Dillutø ClßÌm' ìn Di§ Inte.; RCS A&uqt. On Allowe
eMS and Alowe 1n shal be entitled to á Distbuon under the Plan. If appropriat
the Debtor si mata an adinist a Dj,te Cla Rese Accun and a Disut

Inteest Re Aiun Ca paeøtaatbutle to Disput Cla and Dite .
In si be mataed in th apopri ree acun unti su tle .. su Cla or
Ii is alowe or diow purua to a

..

t

æ .. ~

12
13

Fin Order.

12. BEST INS TE
12.1 The Bantc Cour must iJdependetl dete th the Pla is in th

14
15
16

bes
vaue at

:s ~la! t
provde to ea dillti member of eaimai, Clas a rever th ha a prt

~Hlil
1~i

inte of al Clas of Critrs and In The "bes inti te req th a plan
lea cqto thpr va of th dibutonwbich easu Credr or In holder

j~1l1d
~

~mU

17

is woul reiv i: the Detor wer liqudated un Cha 7 of the Banpt Code.
19

12.2 In peorg th analysis. the Banptc Cour mus firs dete the
, amoùn th would be gen fr~a Ch 7

20
21

de the cost of

liuidaon of the Deor's aset af liqudaon The cost of liquidaon would inlude the Tnu's.

22
23

coon (appr four to fi percet), the Trus øxes fee for coun an oth prfeson rted by the Tru an an Adw Cla In addition to
liquida the Der's aset the Trust inQSal decde wheter to proc

24
25

wi litigaon

ag Crto or oth paes in in

fo recva of avidae tr Oel no

26
27

disbuton is mae in a Ch 7 ca unti aU asts of the Banptc Es and al

Cla
Th dela could furter impmc the

have be liquda aproos th could tae seer yea.

. 28 va of an dibuton mae to holder' of Clais an In under a Çhapte 7 liquidaon.

JN 1:I

i.wp

-24-

t8'S DIl IJA11

1 12.3 Ho'Wve, Confon of the PI8D enle the Debtor to conclude its order.l
2 liquon and tiy díbut al

liquidaon pr whch th Debtr beliCV wi reslt ìn

3 the bi¡l and be reve for Crto an Eqty Sety Holder. By prooing to

4 lidà th rcining ~ ai ~th Deto ça pro wi a Resble
5 Penn an coun th ar al fa wi th ~ thDc bcev1h the
6 liquidaon pro cm be distbute sooner an ata le oxe.

7 12.4 ln1moh as the Pla prpos to pa aU Alowed Cla ìn fu toget with

8 Post-Pettion Inteea Creditrs will be mae who~ an as Suob ar rec at lea 88 muc

9 u they woul reive in a Cha 7 Banpt. Fucmòte. lU th Plan propose to dibute
10 the nm liquda pr to holdec of

Ines af the pa ofseor Cl al
13. YOlIN PROCUR AN BEOlJS

i 1 Eqty Sec Holder are reciv at lea as much as thc; would ree in a Ch 7
~

12 Bipt.
13

~

~

13.1 Ba mi Voting. Ballots to be use for votig to act or reject the Plan arc
2d ~::~ i

1 lUlil 145

eioa with al coies of th Dios Staen The Ban Cour bas di th in
ord to be counte for vo puse Ballot for the actace or reecon of

the Plan mu

:i~I~U:~

nJU! ::
~1I 18

be i-vci by the Dcs ooun no la tb the da se fort in th acanyig Order

Approvg Disclos Staent. Th ad~ phone an fax nu for Debtots' batc

I

19 counel are:
20
21

22
23

3030 Hanen Way~Sui 200 'Palo Al, CA 94..04100 Teleh,one:.(650) 852-90
Faoo: (650) 852-92

A Profesona Corpon

JanM. Mwi, Es. Mur & Mum

24

IF YOU HAVE AN QUBONSREARINGTH PROCUR FOR

2S VOTG ON TH PLA, YOU MAY CONTAcr DEBTOR'S BANUPCY COUNSEL.
26

13.2 Cred IU In Hold IWtled to V$. Wit rOl to the PLan all
(i) it Cl or In ha ll li~ or ,sçuled by th Detor (an su Cla

27 mebe of an imaìed Cla are ettled to vote. The holder of a Clai or Ines is 'entitled to
28 vo if eith,

J\Iii I; D

t..

.25.

DI"Soi STA'J

. '"

1

or Intest is not sceded as dite contien unquat or unown), or (ü) it ba fied
a Pro

2
3

of Cl or in wi th Bim Cour wi the ti ord by th

BantO ,Co or if no tie is or~ed by th Bar Court; with the tie ptbed

4
5

by the pi~ the Baø ~ the B8npt Ru or by th Lo Ru. An Cla or
Ii as to whoh an objecon lia be fied (and is objecon is st pedi is not ened

6
7 8

'to vo unlUl the B8ltc Cour te alow the Clai or Intees in an aaiount whch

it do prope fo the pur of.aog or rejec th PIa. The vote of a Cn Or
In holde ma also be diared if the Banpt Cou dees th the Critor's or IntaØl holdes acoe or niec wa not soci or proc ÎI good ta or in th Ban Coe. In addition with reec to Intees

9
10
11

acrd wi th prsion of

Ban Rule 3018(a) provides th onl holder of Alowed Intees of rerd on the da

'r

.. ..

i

12
13

th Orer Aprovi Di Staent is enteed '(or anther datfied by th Cour) are
entitled to vote on the Pla.
13.3 Impaicnt A Cll! is lIimpai" if

~

1l

~ii 14

J nalir'
i:î~iiû : 1!
¡

is
16 17 18 19

ating to the Cla an Intees of

th lega eqtale,. or contac riKh th Cla are alte other th by cu de and

rei maes. AI Cla of Cla an Inea ar imaied unde the Pla and are

therore entled to vo.

13.4 Yot Re for Cls Acçtaoc. The Banptc Cò rees th ea
Cla or Cla or Inteests acpt the

e
~

Plan uness the Pla is .ipose on a dissti cla as

20
21

debe in Secon 14.3 beow. The Ban Code defne acce by a Clas ofCl.
88 aocc by holder of tw..th in doll amoun and a maorty in numbe of Cla of
th Cla. Th BaCodè defes ~tace by a Cla of

22
23

Intees as ao by

holdm of twtlds (21) in amou of that Cla. Howe, onl th vote of those CRrs

24 ànd Eqty Seurty Holder who acal vote to øcpt or to reec the Pla ar counte for th
25

purse.

26 27

14. COON
Under the Barpt Co.e, the foflowig stps mus be tan to conf the Plan:
14.1 ÇnatnD HtgS Socoi 1128(a) of

l:IDAI

Jl

28

the Ban Codò requi the

i.wp

-26-

DI"3 Jl s'AT

.; I Banpt Co .. notiQ8" to hold l.eCoiionHee -&on 1128() provdes th

2
3

an pa in Inù: ma objeo to Co of

th Pla. The Coon Hoa ma be a4oued frm ti to ti by the Banpt Cour wiout fuer noti cxt fo th

4 ancut ma at the Conoii Hea or an adjour th An objecon to
S

Connaton mu be ma in wr an :fle wi th Ba Cou and nr upn the

6
7
8

foUow pares toct with pro of saco on or beore th da se fort Ìt the
acs Order Approvf Discos St:
Jance M. MurJ &q.

9
10
11

Mury & Mur

3030 Ha Way, Suite 200
Palo Alto, CA 94304100

A Profesiona Corporaon

.~

12
13

280 Sout Fim Str So 268

At Nan Du J?.
SaJ() CA95U3

Ofce of

the U.S. T-r

I
~d ~i~ D

.

~

14 15 16

ObjéCons to Coon of

the Pla 8l goveed by Ban Rule 9014.

~Ull1

14,2 Cogfirmgn Reqmh Por the

Plan to be confed and bin on al
the Banptc Coe have be saed:

holden of CL~ and Inta. th Banptc Co mu ~ete th the follow
requitsofSeoon i 129 of

j~i;!i
I

~lill

17 18 19

A The Pla

coplies wi th provion; of the Banpt Code;
of

B. The Pla proponen ha colied wi the provisions

the Banptc

20 Cod;
21
C.

The Plan ha be propos ii goo fa and not by any mea

22 foriddè by la

23 D. Any pat mae or to be mae by th Pla proponen or a pe
24 is øcties or acui pr un tie Plan for seoe or co in coecon wi the .

25 Ch 1 i Ca or th Plan has be approwd or is subjecuo apprová by the Bønpt Cour
26 as renale;

27 E. The Plan proponen hM dilosed the idtity of an indvidu to se

L1D

~

28 af coon as an offce o. diec of th Der and the apintment to, or contuan
i,wp

-21-

oe'i 0f1U ITATB

1

in su off of su invial is cot with the in ofholdeof Clai an

2 Inte an wi publio pocy. an tho Detor lu dios th idety of an inde th wi 3

be emoy or reed by th Detor, an th na of an copeon for such iner
F. An re cossion withjurdicto~ af Conføi of the
P1a ov th ra

4
S

of the Debt haappr ai ra ol prvide for in th Pla or su
O. The bolder of ea Clai or Inte in ea ClaS of impaed Cla or

6 ra che is ci ooiitione on such apova; 7
S

Intees ha acte the Plan or wi reve under the Plan not les'

th wha that holder would

9
10
11

reve if the De we liqUda unde Chate 7 ofthc Banpto Code;

H Ba Cla of Clai or In ha acte the Plan is not imai
by the

Pla or the Pla is imposed ona diti _I as desbe in Secon 14.3 beow.
i. Prority Clais an Adi Cla re ca in thc fu amount

i ..
:g

12

I
)ld ~..

1-

of'suoh cla on th Bfeove Dat an TáX Cli ree deei ca paen over a

peod not ~ six yeas from dat of asent, of a vae eq to such Clai
J. At leat one impa Cla of Clai ha acte the Pla;

" .~Il 15 g U f 14 ~llJdl 16
17
18

K. Cooon is not liel to be follow by liqudaon or fuer
reorgn of the 'Debtor unes suh liquion or rerganizaon is propose in the Pla.

lUIl~~ ~ .I
~

14.3 Confgn Witut Ac by AI Impi C1a of Claiws or Inte
("Cr Down"). Secon 1 129(b) of

i

the ßanptc Code enles the Der, asthc Pla 20 proponen to co th Planovet the dit of one or more imed Cla of Clai or
19 21

In_ so long as, at lea oil impaed Cla of Clas vote to acpt the Plan. ' In the evt

22 th an iied Clus do not act th P~ the Banptc CoUr ma st conf the Pla
23
at the rees of the Dótor if, u to ea iipaied Cla Whch ha not

acte the Plan the

24 Pla -doe no cfscminat un and is "f and eqle." A plan ofreorg.imon does
25

not dì unly wi the ínea dr the Banpt Coe if no Cla recve more

26
27 28

megs fo holder of sere and un C1 and for holder of

th it is log entitled to ~ve for its Cfa or Intees iiai and eqtalell ha dif Intees.

A Seced Clajs, Wit res to a sered C. "far and eqtale"
i.1I

l \l r,M

, -28-

ai'a i: BTAni

me eìti (i) the imai sec Credtor ret its lien to th ext of its Alowed Clai
an rees deferC( oa pa at lea eq to tho aled amount of its Cla with a
'pree viue lU of~ Bfeo Da-at leaeq to the va ofsu Crelots in in

th

prpe scit li (u) pr subjec to th lifi of

th in sew Cr is sold
tho sae~ and such lien

free an olea of

th liCl wi th lienaUing to the pr of

prs ar tr in ac wi olse (í) or (il) herf; or (il) th impai se
Credto rea the "indubitale eqent" of its'Clai uner the PLan CI88 2 (Savit) is an

~ed seed Cla unthe Plan The Oebto bees th the Plan mee the "et
da- te as to th impa Cla and wil therefre se to ha the Pla confed as to suob
Clu p~ to Secon i 129( )(2XA) of

the Banpt Co in the even the Cla does not

act th Plan
B. Unseured Cimms. With respect to

an unseced Cla "fai and

eauilell'in eiter: (i)

ea

impaied ~ured Credito recvc or ret proper ora

vaue equa to the aiunt of it Allowed Unsed CLai 2! (ü) the holders of Cli and
Inte th ace juor to :t Clai of the disa Cla wil'not recve or re any

prpc under the Pl. Alowed Unseced Clai arc desgn as Cla 3 under the Pls.

Th Detor be th the Plan mee the "cn dow1l.te as to th ìmpa: Cla bcse
citer (i) th wil recve payen in fu or (ü) no junor Clai or juor Ines wi reve or
~ any prope under the Plan The Detor wil therefore ~ to hae the Plan coumed 88

to sueh C1a puraoto Secton 1 1 29( X2)() of the Banpt Code in the ev the Cla
doe not actthe PLan
. C. Inte. Wit re to In~ "fai and eqitalc" meas th ea

holde of an Alow Inter either receies: (i) prope of a vaue. as of the Effecvc Dat
equa to th gr of th amount of an fied liqudaon preerence an fi reempton
pri or the vae of

th Ii m: (ü) th no junor Inte wil rec'v or re any prope

undll the Plan. As no junor Intees wi recve or ret an pr~ unert1 Plan the 'Plan

iii fai andequitalc as to the aui 4 and Clas 5 In The Debtor wi therore se to
ha the Pla ooed as to su Cf pu to Secon 1129( X2XC) of the Banpt
¡:'D

JM .

..I.ll

-29-

D!'S Dl srA'I

i Co

in the evihat an suoo Cia does not act the Pla l(

2 14.4 Sta ColjßDçe. The De believe th the Pla sasfes al of

th

3. st ro of Chate 11 ofthc Bante Cod~ that the Dotor ha compled-or

4 wi ha oolied wi aU of th re of CI 11, an th tho Pla hu bo

5 propàe in go fath.
6 14.5 ßff ofCon. As oftheEff Da th,efec of

Coflnnaton

7 sb be as prvied in Secon 1141 of the Bantq Cot; and as follows:
8 A ;ejndjuii Efec The provons of

the oo Pla ah bi th
Intees of such Credr or Eqty Scority Holder

9 Der~ Staa. an enty ac prpe unde th pia any Credtor, and an Eqty
10 Sec Holder, wheer or not the Cla or

11 is imed uner th Pla anwfer or not ån such Cretor or Equity Securty Holde has

:i 12 ac the Pla.
ä. .

13 B. ymn¡ ofPrQpe. Al prope ofthc Banptc Es ah ves in

l ft f i 14 di De iillec to th lc iu coûoa of l1 Pla. Al prpo of fi De ll..
jthJi.IS oterse provde in th PLan sh be tÌeo and clea ofan lien, encubrce Claof

~ 1 ~ d I. 16 Crers anInto ofBquity Secty Holde.

j~d~ 17 C. p¡ Duno theliquda na ofth PI.. an pot 10
l øl 18 BaoptcCodc 1141 (d)(3), the entr of th Confon Order al not ac as a dige of
,I 19 any debt of the Debtor th arose pror to Conon, excet to the extt that such debtis pad

20 under-the Pla

2 i 14,6 Pla Modon. On the Detö. as the Pla proponmt ma mod the Plan

22 Any modcaon tt coly wi the dios reUicm. Af the Pliha be

.. 24 Claù and In are pett without a solicitaon of new vote. Af Confon. the
23 acto. but befre Coon

,onl modcaoDB that do not adve afec holder of

,

25 De ma mod th Pla beore substal coon in ocrdce wi the provisions the Banptc Coe.
26 of

27 III 28 III
JMis L"l
1...
-30-

DØ'I DØ ITA'I

i
2
3

15. CH 11 POST-CNFTlON

RRRT AN FIAL DE

is. i Post-eop Re. Not lat th 90 day af entr of the Confon
Or, the Debtor. sh

4
S

fie a ~ st fC th. puse ofwh is to ex
tho cndí ca balce, for tho ai 90

th prgres mae to substi con of th coed Plan. The reort sh
in a st of rec an dients wi

6

7
8

da peod. The rort sb aJ°inude inoron sucientl cocm to enle th
Cò to dec (i) whCt the Co~ Order ha bee fi; (2) whetec depøits, if
any, req by th Pla"1i be distrbu (3) wher any

9

prpe propo by th Pla to

10 ,be t:ed ha be trei; (4) wheter th Detor under the Pla ha assued the .
11

bueu or 1hemacm of the pr deat wi by the PLan (5) wheter the payen
unec the Pla hav commce; (6) wheter .aced fee due to the U.S. Trust under 28

~

12
13

æ
so

.

U.S-C. § 1930(aX6)hae bé paid; and (7) whet al motins conte mas and

14
:: -Ii ~

adwn procs have be fial relved. Fuer report mus be filed ever 90 da
tl unti enti of a fi de~ unes otei or by the

~P'lil

IS
16

Co

15.2 &n QfRc A copy of ea re shl be se no la th the da
ma rees such rert in wr ~ sp notice :f wi the Cour

. d.~ rt-Æ1.li

..~~ 17 upo whih it is fied wi th Cou upon the U.S. Trust an such oter peSOns or mtu as
18

'~l

19

20
21

the Bantc &t is fu adinisted the Debtor shl fie an apcaon fo a fi deo an shal see,tI aplicaon on the U.S. T~ toget wìthapr fu dcce Th U.-8. Tru sh mw tw (20) da wi wlích to
15.3 Final Deee. Af

22 objeç or oter oo upn th Couia im of th fi de
23

16. ,ßIClIQl!
16.1 Af Confinon. tho Banptc Cour

24

shal re andhav allithor an

25 jusdcton as is alow ui the Bantc Coe and oter applicable laW to eiorcc the

26
27

proviOI1 purse an inte of th Plan including, without litao~ ma or pr
th relat to:

~
I;ID

28
Lw.

A 11 Stas Sale;
-31-

DI'3~"~

1

B. Alowace dilowace. adjustcnt. treaent, or liqudaon of

Clai

2 an Ii and objecons thet;
3

c. th &'Wpton asgnmen or rejocon of an cxtoty co or

4 uiir loa Of 1I.~ lea coac aaè) pur MIÌer or oter acon 5 6
7
8

ta wrpP to proper of th Debr; .