Document:

exv10w3

 

Exhibit 10.3

STOCK RESALE AGREEMENT

          STOCK RESALE AGREEMENT (the “Agreement”) made as of this 3rd day of March
2004, by and between Ask Jeeves, Inc., a Delaware corporation (the “Company”),
and                 
        (the “Stockholder”).

          WHEREAS, pursuant to an Agreement and Plan of Reorganization dated as of
March 3, 2004 (the “Merger Agreement”) by and among the Company, Aqua
Acquisition Corp., a Delaware corporation and wholly owned subsidiary of the
Company (“Merger Sub”), Aqua Acquisition Holdings LLC, a single member Delaware
limited liability company (“Surviving Company”) and wholly owned subsidiary of
the Company, and Interactive Search Holdings, Inc., a Delaware corporation
(“Target”), Merger Sub is merging (the “Step One Merger”) with and into Target,
with Target as the interim surviving corporation (the “Interim Surviving
Corporation”), and immediately thereafter and as part of the same plan, the
Interim Surviving Corporation will be merged with and into the Surviving
Company (the “Step Two Merger,” and together with the Step One Merger, the
“Mergers”); and

          WHEREAS, as a condition to the consummation of the Mergers and the other
transactions contemplated by the Merger Agreement, the parties have agreed to,
among other things, restrict the ability of the Stockholder to sell or
otherwise transfer any securities of the Company acquired by Stockholder as a
result of the Mergers (the “Shares”) as set forth herein.

          NOW THEREFORE, in consideration of the mutual promises and obligations set
forth herein, the parties agree as follows:

I. RESALE RESTRICTIONS

     1.1 Certain Restrictions on Transfers by the Stockholder. The Stockholder
hereby agrees and covenants to the Company that the Stockholder shall not,
directly or indirectly sell, offer to sell, contract to sell (including,
without limitation, any short sale or hedge), grant any option to purchase or
otherwise transfer (except for transfers required to comply with rules and
regulations governing ownership thresholds for bank holding companies and their
affiliates, grants of participation interests consistent with past business
practices, or as may be required by court order) or dispose of (in each case, a
“Transfer”) any of the Shares except in accordance with the provisions hereof
as follows:

          (a) During the one hundred eighty-one (181) day period following the
Effective Time (as defined in the Merger Agreement), the Stockholder may not
Transfer any of the Shares.

          (b) During the period beginning one hundred eighty-two (182) days
following the Effective Time and ending three hundred sixty-five (365) days
following the Effective Time, the Stockholder may Transfer (subject to all
applicable securities laws) up to an aggregate of eighty percent (80%) of the
Shares; provided, however, that the Stockholder shall in no event Transfer
more than an aggregate of twenty-nine percent (29%) of the Shares in any
consecutive four (4) week period during such period.

 

 

          (c) During the period beginning three hundred sixty-six (366) days
following the Effective Time, the Stockholder may Transfer (subject to all
applicable securities laws) any remaining Shares then held by the Stockholder;
provided, however, that the Stockholder shall in no event Transfer more than an
aggregate of twenty-nine percent (29%) of the Shares in any consecutive four
(4) week period during such period.

          (d) Notwithstanding anything herein to the contrary, the Stockholder may
Transfer Shares to a Grantor Retained Annuity Trust (a “GRAT”) for the benefit
of such Stockholder’s spouse, grandparents or descendants of those
grandparents, children (natural and adopted), natural or adopted siblings,
mothers and fathers in law, sons and daughters in law, and brothers and sisters
in law; provided that no such Transfer shall be permitted unless the Shares
remain subject to the Transfer restrictions contained herein; and provided
further that no such Transfer shall be permitted unless the GRAT, by its
express terms, does not terminate so as to distribute the Shares to the
beneficiaries (or any other person) prior to the termination of this Agreement.
All such Transferred Shares and any Shares held by the Stockholder (and sales
or other dispositions thereof) shall be aggregated for purposes of the Transfer
restrictions contained herein.

          (e) For purposes of this Agreement, a “Transfer” shall not include any
disposition of Shares pursuant to the exercise of piggyback registration rights
under and in conformity with Section 1.7 hereof.

     In order to enforce the covenants in this Section 1, the Stockholder
acknowledges and agrees that the Company may impose stop transfer instructions
with respect to the Shares.

     1.2 Alternative Restrictions on Transfers by the Stockholder.
Notwithstanding anything in Section 1.1 to the contrary, solely in the event
that the closing price per share of the Company’s common stock as traded on The
Nasdaq Stock Market (or such other stock exchange or trading system as shall be
from time to time the primary exchange or trading system on which the Company’s
common stock is then traded) (the “Closing Price of Common Stock”) is equal to
or greater than twenty-five dollars ($25.00) (as appropriately adjusted for any
stock splits, dividends, combinations, recapitalizations or the like) for any
ten (10) consecutive trading days beginning at any time after the date that is
eighty-one (81) days following the Effective Time, the Stockholder may Transfer
Shares (subject to all applicable securities laws) at a price equal to or
greater than twenty-five dollars ($25.00) per Share following such date;
provided, however, that (i) the Stockholder shall in no event Transfer more
than an aggregate of eighty percent (80%) of the Shares during the period
beginning ninety-one (91) days following the Effective Time and ending three
hundred sixty-five (365) days following the Effective Time and (ii) the
Stockholder shall in no event Transfer more than an aggregate of forty percent
(40%) of the Shares in any consecutive four (4) week period during such period.
During the period beginning three hundred sixty-six (366) days following the
Effective Time, the Stockholder may freely Transfer (subject to all applicable
securities laws) any remaining Shares then held by Stockholder.
Notwithstanding anything in this Section 1.2 to the contrary, if at any time
the Stockholder proposes to Transfer Shares at a price below twenty-five
dollars ($25.00), then (i) Stockholder shall be subject to the provisions of
Section 1.1, (ii) shall not be permitted to Transfer Shares pursuant to this
Section 1.2, and (iii) any Shares previously Transferred under this Section 1.2

2

 

shall be considered and counted for purposes of the Transfer limits in
Section 1.1, as applied to subsequent transfers.

     For purposes of clarity, Transfers of Shares pursuant to the exercise of
piggyback registration rights under and in conformity with Section 1.7 hereof
shall not be subject to the provisions of this Section 1.2.

     1.3 Additional Alternative Restrictions on Transfers by the Stockholder.
Notwithstanding anything in Section 1.1 or Section 1.2 to the contrary, solely
in the event that the Closing Price of Common Stock is equal to or greater than
thirty dollars ($30.00) (as appropriately adjusted for any stock splits,
dividends, combinations, recapitalizations and the like) for any ten (10)
consecutive trading days beginning at any time after the date that is
eighty-one (81) days following the Effective Time, the Stockholder may Transfer
Shares (subject to all applicable securities laws) at a price equal to or
greater than thirty dollars ($30.00) per Share following such date; provided,
however, that (i) the Stockholder shall in no event Transfer more than an
aggregate of eighty percent (80%) of the Shares during the period beginning
ninety-one (91) days following the Effective Time and ending three hundred
sixty-five (365) days following the Effective Time and (ii) the Stockholder
shall in no event Transfer more than an aggregate of fifty four percent (54%)
of the Shares in any consecutive four (4) week period during such period.
During the period beginning three hundred sixty-six (366) days following the
Effective Time, the Stockholder may freely Transfer (subject to all applicable
securities laws) any remaining Shares then held by Stockholder.
Notwithstanding anything in this Section 1.3 to the contrary, if at any time
the Stockholder proposes to Transfer Shares at a price per share (i) below
twenty-five dollars ($25.00), then the Stockholder shall be subject to the
provisions of Section 1.1, or (ii) below thirty dollars ($30.00) but at least
twenty-five dollars ($25.00), then (A) the Stockholder shall be subject to the
provisions of Section 1.2, (B) in either such case, the Stockholder shall not
be permitted to Transfer Shares pursuant to this Section 1.3 and (C) any Shares
previously Transferred under this Section 1.3 shall be considered and counted
for purposes of the Transfer limits in Section 1.2 and Section 1.1, as
applicable, as applied to subsequent transfers.

     For purposes of clarity, Transfers of Shares pursuant to the exercise of
piggyback registration rights under and in conformity with Section 1.7 hereof
shall not be subject to the provisions of this Section 1.2.

     1.4 [For Steinman, Daugherty and others to be identified Transfers
Pursuant to a Sales Plan. Notwithstanding the other provisions of Section 1,
in lieu of Transferring Shares pursuant to the provisions of Section 1.1, 1.2
or 1.3 hereof, the Stockholder may Transfer Shares pursuant to a written sales
plan to be determined in the sole discretion of and adopted by the Stockholder
(the “Sales Plan”) in accordance with the following provisions:

          (a) The Sales Plan must comply in all respects with the provisions of Rule
10b5-1 promulgated under the Securities Exchange Act of 1934, as amended (“Rule
10b5-1”) and any restrictions or requirements set forth under applicable law;

          (b) The Sales Plan will allow the Transfer of a maximum of six hundred
fifty thousand (650,000) Shares (as appropriately adjusted for stock splits,
dividends, combinations,

3

 

recapitalizations and the like) during the three hundred sixty-five (365)
day period following the Effective Time;

          (c) Notwithstanding any other provision of Section 1, the Stockholder will
not Transfer any Shares other than pursuant to the terms of the Sales Plan
during the three hundred sixty-five (365) day period following the Effective
Time; and

          (d) During the period beginning three hundred sixty-six (366) days
following the Effective Time, the Stockholder may Transfer Shares (subject to
all applicable securities laws) pursuant to any other provision of Section 1 of
this Agreement; provided, however, that the Stockholder may also continue to
Transfer Shares pursuant to any written sales plan determined and adopted by
the Stockholder in accordance with the requirements of Rule 10b5-1 and all
other applicable laws.]

     1.5 Restriction on Transfer to Five Percent Holders. Notwithstanding
anything in this Section 1 to the contrary, the Stockholder shall not with
actual knowledge after inquiry, without the prior written consent of the Chief
Executive Officer or Chief Financial Officer of the Company, at any time
Transfer any Shares to any third party if as a result of such transfer, such
third party would own five percent (5%) or more of the then outstanding shares
of the Company’s common stock; provided, however, that the foregoing
restriction shall not apply to any sale of Shares made by the Stockholder (a)
pursuant to an underwritten registration statement for a public offering of the
Shares pursuant to the Securities Act of 1933, as amended (the “Securities
Act”), (b) through a broker on the open market, (c) pursuant to a tender offer
approved or recommended by the Company’s Board of Directors for the Company’s
outstanding common stock by someone other than a former Target stockholder (as
defined in the Merger Agreement) where the person making the tender offer
purchases more than half of the Company’s common stock not owned by such person
and such person’s affiliates prior to commencing the tender offer or (d) in
connection with a transaction approved or recommended by the Company’s board of
directors.

     1.6 Calculations. All calculations hereunder with respect to the amount
of the Shares permitted to be sold by the Stockholder shall be determined by
reference to the aggregate number of Shares acquired by the Stockholder as a
result of the Mergers (as appropriately adjusted for stock splits, dividends,
combinations, recapitalizations and the like).

     1.7 Piggyback Registration. [For Steinman and Daugherty only]

          (a) Right to Piggyback. At any time prior to the termination of this
Agreement, if the Company offers to register any shares of its common stock
held by its directors or executive officers (“Management”) under the Securities
Act (other than registrations on Form S-4 or Form S-8 or the equivalent
thereof) with respect to an underwritten public offering of equity securities
and the form of Registration Statement to be used may be used for the
registration of the Shares, the Company shall give prompt written notice to
Stockholder of its intent to do so. Within 15 days after receipt of such
notice, Stockholder may by written notice to the Company request the
registration by the Company under the Securities Act in connection with such
proposed registration all or a portion of the Shares (a “Piggyback
Registration”). Such written notice to the Company shall specify the Shares
intended to be sold by the Stockholder. Upon receipt of

4

 

such request, the Company shall use its reasonable best efforts to
register under the Securities Act all of the Shares which the Company has been
so requested to register; provided, however, that if at any time after giving
notice of its intent to register the Shares and before the effective date of
the registration statement filed in connection with such Piggyback
Registration, the Company determines for any reason not to register or to delay
registration of any other shares of common stock being registered pursuant
thereto, the Company may, at its election, give notice of such determination to
the Stockholder, and, thereupon, (i) in the case of a determination not to
register any shares of its common stock in connection with such Piggyback
Registration, not register such Shares and (ii) in the case of a determination
to delay registering any shares of its common stock in connection with such
Piggyback Registration, delay registering any Shares for the same period as the
delay in registering such other shares of common stock.

          (b) Priority in Piggyback Registrations. If the managing underwriter of
the Piggyback Registration informs the Company in writing of its judgment that
including the Shares in the Piggyback Registration creates a substantial risk
that the proceeds or price per unit to be received from such offering might be
reduced or that the number of shares of the Company’s common stock is too large
to be sold in a reasonable, orderly manner, then the managing underwriter may
exclude some or all of such Shares from such registration and underwriting.
Any reduction in the number of shares of the Company’s common stock to be
included in such registration and underwriting shall be borne by Management and
the Stockholder pro rata based on the number of shares, if any, for which
registration was requested by each such individual. Any Shares excluded from
such underwriting shall be withdrawn from the Piggyback Registration.

          (c) Obligations of Stockholder. In connection with any Piggyback
Registration, the Company may require the Stockholder to furnish the Company
such information regarding the Stockholder and the distribution of the Shares
as the Company may reasonably request for the purpose of effecting such
registration. In addition, the Stockholder must (i) agree to sell the Shares
on the basis provided in the underwriting agreement entered into in connection
with the Piggyback Registration and (ii) complete and execute all documents
required pursuant hereto or the underwriting agreement.

          (d) Registration Expenses. The Stockholder shall bear its pro rata
portion of the expenses incident to any Piggyback Registration to the same
extent as the members of Management whose shares are included in such Piggyback
Registration, including, without limitation, registration, filing and National
Association of Securities Dealers fees, securities and blue sky compliance fees
and expenses, general and administrative expenses, Company counsel and
accountants fees and disbursements and any special audit costs. In addition,
the Stockholder shall pay all of (i) the fees and disbursements of any counsel
retained by the Stockholder in connection with the exercise of any Piggyback
Registration and (ii) any discounts, commissions or fees of underwriters,
selling brokers, dealer managers, sales agents or similar securities industry
professionals relating to the distribution of the Shares and applicable
transfer taxes thereon, if any.

          (e) No Limitation. Any Shares registered by the Company in a Piggyback
Registration may be sold, upon effectiveness of the registration statement
related thereto, by the

5

 

Stockholder in such Piggyback Registration without regard to the other
transfer limitations and restrictions set forth in this Agreement.

II. GENERAL PROVISIONS

     2.1 Notices. Any notice required or permitted by this Agreement shall be
in writing and shall be deemed sufficient upon receipt, when delivered
personally or by same-day courier, overnight delivery service or confirmed
facsimile, provided that if delivered on a date that is not a business day or
after 5:00 p.m. on a business day (in each case at the place of delivery), such
notice shall be deemed delivered on the next succeeding business day, if such
notice is delivered to the party to be notified at such party’s address or
facsimile number as set forth on the signature page hereto, or as subsequently
modified by written notice.

     2.2 No Waiver. No waiver of any breach or condition of this Agreement
shall be deemed to be a waiver of any other or subsequent breach or condition,
whether of like or different nature.

     2.3 Stockholder Undertaking. The Stockholder hereby agrees to take any
additional action and execute any additional documents reasonably necessary in
order to carry out or effect one or more of the obligations or restrictions
imposed on either the Stockholder or the Shares pursuant to the express
provisions of this Agreement.

     2.4 Entire Agreement. This Agreement and the Merger Agreement (together
with all the annexes or exhibits thereto and other agreements delivered in
connection therewith) set forth the entire agreement between the parties hereto
with respect to the matters provided herein and therein and supersede all prior
and contemporaneous agreements, understandings, negotiations and discussions,
whether oral or written, of the parties with respect to such subject matter.
The Stockholder acknowledges that nothing in the Merger Agreement, including
without limitation Article Eight thereof, shall limit the liability of the
Stockholder for breach of this Agreement.

     2.5 Legend. Each certificate representing any Shares shall bear a legend
reading as follows:

“The shares evidenced hereby are subject to the terms of a Stock
Resale Agreement (a copy of which may be obtained without charge
from the Company), and by accepting any interest in such shares
the person accepting such interest shall be deemed to agree to and
shall become bound by all the provisions of the Stock Resale
Agreement, as amended from time to time.”

     2.6 Counterparts. This Agreement may be executed in counterparts, each of
which shall be deemed to be an original, but all of which together shall
constitute one and the same instrument.

     2.7 Successors and Assigns. The provisions of this Agreement shall inure
to the benefit of, and be binding upon, the Company and its successors and
assigns and the Stockholder and the Stockholder’s legal representatives, heirs,
legatees, distributees, assigns and transferees

6

 

by operation of law, whether or not any such person shall have become a
party to this Agreement and have agreed in writing to join herein and be bound
by the terms and conditions hereof.

     2.8 Specific Performance. Each party hereto acknowledges that, in view of
the uniqueness of the transactions contemplated by this Agreement, the other
party would not have an adequate remedy at law for money damages in the event
that this Agreement has not been performed in accordance with its terms. Each
party therefore agrees that the other party shall be entitled to specific
enforcement of the terms hereof in addition to any other remedy to which it may
be entitled, at law or in equity.

     2.9 Amendment and Waiver. This Agreement shall not be amended nor any
Section hereof waived without the written consent of the Company and the
Stockholder.

     2.10 Termination. This Agreement shall terminate and be of no further
force or effect upon the earlier of (i) eighteen (18) months following the
Effective Time, (ii) at such time that the Stockholder, together with its
affiliates (as such term is defined in Rule 12b-2 under the Securities Exchange
Act of 1934, as amended), owns less than twenty-five percent (25%) of the
Shares, or (iii) immediately prior to a Change of Control of the Company.
“Change of Control” means (a) the sale of all or substantially all of the
Company’s assets, (b) any business combination which results in holders of the
Company’s common stock holding less than 50% of the voting power of the equity
securities of the resulting parent entity in such business combination or (c)
the closing of a tender offer for the Company’s outstanding common stock by
someone other than a former Target stockholder where the person making the
tender offer actually purchases more than half of the Company’s common stock
not owned by such person and such person’s affiliates prior to commencing the
tender offer.

     2.11 Governing Law; Submission to Jurisdiction. This Agreement shall be
governed by, and interpreted, in accordance with, the laws of the State of
Delaware, without regard to conflicts of laws. The parties hereto irrevocably
(a) submit to the exclusive personal jurisdiction of any state or federal court
located in or for the State of Delaware in any suit, action or other legal
proceeding relating to this Agreement; (b) agree that all claims in respect of
any such suit, action or other legal proceeding may be heard and determined in,
and enforced in and by, any such court; and (c) waive any objection that they
may now or hereafter have to venue in any such court or that such court is an
inconvenient forum.

[Signature Page Follows]

7

 

     IN WITNESS WHEREOF, the parties have executed this Stock Resale Agreement
on the day and year first above written.

	 	 	 	 	 	 	 
	 	 	COMPANY:
	 
	 	 	 	 	 	 
	 	 	Ask Jeeves, Inc.
	 
	 	 	 	 	 	 
	

	 	By:	 	 	 	 
	

	 	 	 	
 	 	 
	 
	 	 	 	 	 	 
	

	 	Name:	 	 	 	 
	

	 	 	 	
 	 	 
	 
	 	 	 	 	 	 
	

	 	Title:	 	 	 	 
	

	 	 	 	
 	 	 
	 
	 	 	 	 	 	 
	

	 	Address:	 	 	 	 
	

	 	 	 	
 	 	 
	 
	 	 	 	 	 	 
	 	 	STOCKHOLDER:
	 
	 	 	 	 	 	 
	 	 	
 	 	 
	

	 	[Name]	 	 	 	 
	 
	 	 	 	 	 	 
	

	 	Address:	 	 	 	 
	

	 	 	 	
 	 	 
	 
	 	 	 	 	 	 
	 	 	
 	 	 
	 
	 	 	 	 	 	 
	 	 	
 	 	 

8exv10w4

 

Exhibit 10.4

NON-COMPETITION AGREEMENT

          THIS
NONCOMPETITION AGREEMENT (this “Agreement”), dated as of March 3,
2004, is entered into by and among Ask Jeeves, Inc., a Delaware corporation
(“Acquiror”), and    , the undersigned individual stockholder
(“Holder”) of Interactive Search Holdings, Inc., a Delaware corporation
(“Holder”).

BACKGROUND

          A. Acquiror, Holder, Aqua Acquisition Corp., a Delaware corporation and
wholly owned subsidiary of Acquiror (“Merger Sub”) and Aqua Holdings LLC, a
single member Delaware limited liability company wholly owned by Acquiror (the
“LLC”), have entered into that certain Merger Agreement dated March 3, 2004
(the “Merger Agreement”), pursuant to which Indigo,
Inc. (“Target”) merged
substantially all of its assets (the “Merger”) with Acquiror.

          B. Holder owns a substantial portion of the outstanding capital stock (the
“Stock”) of Target, and as a result of the Merger, Holder received an ownership
interest in Acquiror (capitalized terms used but not otherwise defined herein
shall have the meanings given such terms in the Merger Agreement).

          C. Holder
previously served as the        of Target.

          D. Holder
is a resident of the State of
        and with primary
offices based in Irvington, New York.

          E. Acquiror, after giving effect to the Merger, is engaged in the business
of information retrieval and providing web wide search.

          F. After giving effect to the Merger, Holder will be a key executive
officer of the Acquiror.

          G. In consideration for Holder receiving the consideration described in
Section 1.6 of the Merger Agreement, and to protect the goodwill of the
business purchased by Acquiror in connection with the Merger Agreement, and as
an inducement for Acquiror to enter into the Merger Agreement and to merge all
of the assets of Target, Holder has agreed to enter into this Agreement.

AGREEMENT

          In consideration of the mutual representations, warranties and covenants
contained herein, and upon and subject to the terms and the conditions
hereinafter set forth, the parties do hereby agree as follows:

          1. Agreement Not to Compete. The parties acknowledge that Holder has
acquired significant knowledge and information concerning the business of
Target, which will be the business of the Acquiror after giving effect to the
Merger and that such business is very

S-1

 

competitive. The parties acknowledge that Target is presently doing
business in each of the various States within, and territories of, the United
States and in each of the countries as listed on Exhibit A hereto
(collectively, the “Covered Area”). Competition by Holder with the business of
Acquiror after consummation of the transactions contemplated by the Merger
Agreement would severely injure the business of the Acquiror and impair the
goodwill being purchased by Acquiror. Accordingly, Holder agrees that he shall
not, for a period of two (2) years from the date of the Closing (the
“Non-Compete Period”), compete with the business of Acquiror, by engaging,
directly or indirectly, in the Covered Business (as defined below) within the
Covered Area. In addition, Holder agrees that while an employee or consultant
of Acquiror, Holder shall not compete with any new business that is outside the
scope of the Covered Business engaged in by Acquiror or any of its subsidiaries
after the date hereof.

          2. Definitions. For purposes of this Agreement, (i) “Covered Business”
means business that Target is currently involved in during the one-year period
preceding the date of this Agreement, including but not limited to toolbar
distribution, on-line search, on-line advertising, portal services, and on-line
advertising representation (ii) the phrase “engaging,
directly or indirectly”
means engaging or having an interest in, directly or indirectly, as owner,
partner, participant of a joint venture, trustee, proprietor, shareholder,
member, manager, director, officer, employee, independent contractor, capital
investor, lender, consultant, advisor or similar capacity, or by lending or
allowing his name or reputation to be used in connection with, or otherwise
participating in or allowing his skill, knowledge or experience to be used in
connection with, the operation, management or control of a business or
enterprise engaged in any aspect of the Covered Business, and (iii)
“within”
the Covered Area includes the sale, marketing or distribution to a person or
entity in or within, or for resale within, the Covered Area even if the service
is performed in another state, territory, jurisdiction or country or the
product sold or distributed is manufactured in or sold or shipped from another
place.

          3. Non-Solicitation. Holder agrees not to directly or indirectly,
individually or as a consultant, employee, officer, director, manager,
stockholder, partner, member, owner, advisor or participant in any business
entity, solicit or endeavor to entice away from Acquiror or any of its
subsidiaries, parent, or holding company (Acquiror and each such subsidiary,
parent or holding company are collectively referred to herein as the “Related
Companies” and each individually as a “Related
Acquiror”), or otherwise
materially interfere with the business relationship of any Related Acquiror
with, any person or entity who is, or was within the one year period
immediately prior to the termination of the Non-Compete Period, (a) employed by
or a consultant to any Related Acquiror, or (b) a customer or client of,
supplier to or other party having material business relations with any Related
Acquiror.

          4. Non-Solicitation of Customers. Holder agrees that, during the
Non-Compete Period, he shall not, directly or indirectly through any other
person or entity, either alone or in association with others, engage in the
Covered Business with or solicit or attempt to solicit any Covered Business
from or divert or attempt to divert away from Acquiror any business from any
currently existing customer, vendor or distributor, or those presently
identified prospective customer, vendors or distributors, of Acquiror with
respect to any product or service being furnished, made or sold by Acquiror and
related to the Covered Business, or those presently identified prospective
customers, vendors or distributors, or Acquiror with respect to

 

 

any product or service being furnished, made or sold by Acquiror and
related to the Covered Business.

          5. Permitted Activities. Nothing contained herein shall limit the right
of Holder as an investor to hold and make investments in securities of any
corporation or limited partnership that is registered on a national securities
exchange or admitted to trading privileges thereon or traded on the Nasdaq
National Market, provided Holder’s equity interest therein does not exceed 3%
of the outstanding shares or interests in such corporation or partnership and
provided that Holder does not violate Acquiror’s Insider Trading Policy. In
the event that Holder becomes involved in any activity which may be competitive
with the business of the Acquiror or any of its subsidiaries after the date
hereof that is outside the scope of the Covered Business, then Holder shall
promptly inform the Board of Directors of Acquiror (the “Board of Directors”)
of such activity, and Holder shall, if requested by the Board of Directors,
cease, withdraw, disengage or divest his interests in such activity at the
request of the Board of Directors. Holder, if a member of the Board of
Directors, shall abstain from voting on such matter.

          6. Special Remedies and Enforcement. Holder recognizes and agrees that a
breach by Holder of any of the covenants set forth in this Agreement could
cause irreparable harm to Acquiror, that the remedies at law in the event of
such breach would be inadequate, and that, accordingly, in the event of such
breach, a temporary restraining order or injunction or both may be issued
against Holder without any requirement that Acquiror post any bond or security,
in addition to any other rights and remedies which are available to Acquiror.
The Supreme Court of New York of the State of New York, New York County shall
have jurisdiction over any such action for provisional injunctive relief.

          7. Severability. The parties intend that all of the covenants contained
herein shall be deemed to be separate covenants as to each state, territory,
jurisdiction and country and that if in any judicial proceeding a court shall
refuse to enforce all of the separate covenants included herein because, taken
together, they cover too extensive a geographic area or because any one
includes too large an area or because they cover too long a period of time or
because they cover too broad a range of activities, the parties intend that
such covenants shall be reduced in scope to the extent required by law, or, if
necessary, eliminated from the provisions hereof, and that all remaining
covenants hereof not so affected shall remain fully effective and enforceable.

          8. Attorneys’ Fees. In the event of any action or proceeding by any party
arising out of or relating to this Agreement, including without limitation, for
the breach of this Agreement, the prevailing party shall be entitled to
reasonable attorneys’ fees (including experts’ fees), costs and expenses
incurred in such action or proceeding. Attorneys’ fees incurred in enforcing
any judgment in respect of this Agreement are recoverable as a separate item.
The preceding sentence is intended to be severable from the other provisions of
this Agreement and to survive any judgment and, to the maximum extent permitted
by law, shall not be deemed merged into such judgment.

          9. Amendment. This Agreement may be amended by Acquiror and Holder by an
instrument in writing signed by, or on behalf of, each of them.

 

 

          10. Entire Agreement. This Agreement (including the Appendices)
constitutes the sole understanding of the parties with respect to the subject
matter hereof, except that nothing in this Agreement alters any obligations by
Holder pursuant to any Employment Agreement between Holder and Acquiror or
Related Acquiror.

          11. Counterparts. This Agreement may be executed in two or more
counterparts (including facsimile versions), each of which shall for all
purposes be deemed to be an original and all of which shall constitute the same
instrument.

          12. Headings. The headings of the Sections and paragraphs of this
Agreement are inserted for convenience only and shall not be deemed to
constitute part of this Agreement or to affect the construction thereof.

          13. Waiver. Any of the terms or conditions of this Agreement may be
waived in writing at any time by the party which is entitled to the benefits
thereof. No waiver of any of the provisions of this Agreement shall be deemed
to or shall constitute a waiver of any other provision hereof (whether or not
similar).

          14. Governing Law. This Agreement shall be construed in accordance with
and governed by the laws of the State of New York without giving effect to the
principles of conflicts of law thereof.

          15. Notices. All notices, requests, consents and other communications
required or permitted hereunder will be in writing and will be deemed given:
(i) when delivered if delivered personally (including by courier); (ii) on the
third day after mailing, if mailed, postage prepaid, by registered or certified
mail (return receipt requested); (iii) on the day after mailing if sent by a
nationally recognized overnight delivery service which maintains records of the
time, place, and recipient of delivery; or (iv) upon receipt of a confirmed
transmission, if sent by telecopy or facsimile transmission, in each case to
the parties at the following addresses:

	 	 	 
	

	 	(a) if to Holder, to:
	 
	 	 
	

	 	Facsimile No.:
	

	 	Telephone No.:
	 
	 	 
	

	 	with a copy to:
	 
	 	 
	 

	 	

	

	 	Attention:
	

	 	Facsimile No.:
	 
	 	 
	

	 	(b) if to Acquiror, to:

 

 

	 	 	 
	

	 	Ask Jeeves, Inc.
	

	 	5858 Horton Street, Suite 350
	

	 	Emeryville, CA 94608
	

	 	Attention: General Counsel
	

	 	Facsimile No.: (510) 985-7507
	

	 	Telephone No.: (510) 985-8100
	 
	 	 
	

	 	with a copy to:
	 
	 	 
	

	 	O’Melveny & Myers LLP
	

	 	2765 Sand Hill Road
	

	 	Menlo Park, CA 94025
	

	 	Attention: Karen Dreyfus
	

	 	Facsimile No.: (650) 473-2601
	

	 	Telephone No.: (650) 473-2600

or to such other person or address as a party may designate in writing.

          IN WITNESS WHEREOF, the parties hereto have executed this Non-competition
Agreement as of the day and year first written above.

	 	 	 	 	 
	 	 	ASK JEEVES, INC.
	 	 	a Delaware Corporation
	 
	 	 	 	 
	

	 	By:	 	 
	

	 	 	 	
 
	

	 	Name:	 	 
	

	 	 	 	
 
	

	 	Title:	 	 
	

	 	 	 	
 
	

	 	 	 	,
	 	 	
 
	 	 	an individual
	 
	 	 	 	 
	 	 	
 

 

 

EXHIBIT A

Covered Area

States and Territories of the United States

Each State of the United States and each Territory of the United States

Countries

UK

Europe

Japan

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00061-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00061-of-00352.parquet"}]]