Document:

EXHIBIT 10.1

 

AGREEMENT

 

THIS AGREEMENT

(this “Agreement” or “Stock Release Agreement”) is made as of June 25, 2002,

between E-CENTIVES, INC., a Delaware corporation (“e-centives”), and INKTOMI

CORPORATION, a Delaware corporation (“Inktomi”, and together with e-centives,

the “Parties”).

 

WITNESSETH

 

WHEREAS, the

Parties entered into an Asset Purchase Agreement, dated January 18, 2001 (the

“Asset Purchase Agreement”), pursuant to which e-centives purchased certain

assets and assumed certain liabilities of Inktomi as provided therein;

 

WHEREAS, in

connection with the consummation of the transactions contemplated by the Asset

Purchase Agreement, the Parties entered into (a) an Escrow Agreement, dated

March 28, 2001 (the “Escrow Agreement”), (b) a Sublease, dated March 28, 2001

(the “Sublease”), pursuant to which Inktomi subleased to e-centives certain

premises in the building commonly known as 555 Twin Dolphin Drive, which is

located in Redwood City, CA, and (c) a letter agreement regarding restrictions

on resale of e-centives’ common stock, dated March 28, 2001 (the “Resale

Restrictions Agreement”);

 

WHEREAS, the

Parties desire to release all shares of e-centives common stock and all other

property, if any, contained in the Indemnity Fund (as defined in the Escrow

Agreement) to Inktomi in accordance with the terms contained in this Agreement;

 

WHEREAS, the

Parties wish to amend the Resale Restrictions Agreement as provided in this

Agreement; and

 

WHEREAS, the

Parties have agreed to amend the Sublease pursuant to the terms of the Second

Amendment to Sublease being entered into by the Parties concurrently with this

Agreement;

 

NOW,

THEREFORE, in consideration of the premises and for other good and valuable

consideration, the receipt and sufficiency of which is hereby acknowledged, the

Parties agree as follows:

 

1.                                       Representations

and Warranties.  Each of the Parties

represents and warrants to each other that such Party has full power and

authority (including full corporate power and authority) to execute and deliver

this Agreement and to perform its obligations hereunder, and that this

Agreement constitutes the valid and legally binding obligation of such Party,

enforceable in accordance with its terms and conditions.

 

 

2.                                       Release

of Indemnity Fund.

 

(a)                                  Notwithstanding

anything to the contrary contained in the Asset Purchase Agreement or the

Escrow Agreement, the Parties hereby agree that all shares of e-centives common

stock and all other property, if any, contained in the Indemnity Fund (as

defined in the Escrow Agreement) shall be released to Inktomi in accordance

with instructions to be provided to the Escrow Agent (as defined in the Escrow

Agreement), which instructions are to be executed by each of the Parties and

delivered to the Escrow Agent simultaneous with the execution of this

Agreement.

 

(b)                                 The

Parties agree that, notwithstanding anything to the contrary contained in the

Asset Purchase Agreement, all indemnification obligations of Inktomi and

e-centives contained in Section 8 of the Asset Purchase Agreement are hereby

terminated and shall have no further effect from the date hereof.  Each Party represents and warrants to the

other Party that, as of the date hereof, no claim for indemnification has been

made against the other Party which has not been resolved in accordance with the

terms of the Asset Purchase Agreement and Escrow Agreement and no basis for any

such claim exists.

 

3.                                       Amendment

to Resale Restrictions Agreement.

 

(a)                                  The

Parties agree that subsection (1) of the second paragraph of the Resale Restrictions

Agreement is hereby stricken and the following shall be inserted in lieu

thereof: “(1) two and one half percent (2.5%) of the number of outstanding

shares of Common Stock as shown on the most recent report or statement

published by e-centives, or”.

 

4.                                       Effect

of Agreement.  All references to the

Asset Purchase Agreement, Escrow Agreement or Resale Restrictions Agreement

shall mean such agreement as amended or superseded by the provisions of this

Agreement.  Except as specifically

amended or otherwise provided above, each agreement shall remain in full force

and effect in its original form or as previously amended, as the case may be.

 

5.                                       Cooperation.  The Parties shall cooperate with one another

in the execution of any further documents or instruments that any Party shall

reasonably request the other Party to execute and deliver, and in the

performance of any other reasonably requested action that may be deemed

necessary or advisable, in relation to the actions contemplated by this

Agreement.

 

6.                                       Counterparts.  This Agreement may be executed in two or

more counterparts, each of which shall be deemed an original but all of which

together will constitute one and the same instrument.

 

2

 

7.                                       Headings.  The section headings contained in this

Agreement are inserted for convenience only and shall not affect in any way the

meaning or interpretation of this Agreement.

 

8.                                       Governing

Law.  This Agreement shall be

governed by and construed in accordance with the domestic laws of the State of

California without giving effect to any choice or conflict of law provision or

rule (whether of the State of California or any other jurisdiction) that would

cause the application of the laws of ay jurisdiction other than the State of

California.

 

9.                                       Amendments

and Waivers.  No amendment of any

provision of this Agreement shall be valid unless the same shall be in writing

and signed by the Parties.  No waiver by

any Party of any default, misrepresentation, or breach of warranty or covenant

hereunder, whether intentional or not, shall be deemed to extend to any prior

or subsequent default, misrepresentation, or breach of warranty or covenant

hereunder or affect in any way any rights arising by virtue of any prior or

subsequent such occurrence.

 

10.                                 Severability.  Any term or provision of this Agreement that

is invalid or unenforceable in any situation in any jurisdiction shall not

affect the validity or enforceability of the remaining terms and provisions

hereof or the validity or enforceability of the offending term or provision in

any other situation or in any other jurisdiction.

 

11.                                 Expenses.  Each of the Parties will bear its own costs

and expenses (including legal fees and expenses) incurred in connection with

this Agreement.

 

12.                                 Construction.  The Parties have participated jointly in the

negotiation and drafting of this Agreement. 

In the event an ambiguity or question of intent or interpretation

arises, this Agreement shall be construed as if drafted jointly by the Parties

and no presumption or burden of proof shall arise favoring or disfavoring any

Party by virtue of the authorship of any of the provisions of this Agreement.

 

13.                                 Specific

Performance.  Each of the Parties

acknowledges that the other Party would be damaged irreparably in the event any

of the provisions of this Agreement are not performed in accordance with their

specific terms or otherwise are breached. 

Accordingly, each of the Parties agrees that the other Party shall be

entitled to an injunction or injunctions to prevent breaches of the provisions

of this Agreement and to enforce specifically this Agreement and the terms and

provisions hereof in any action instituted in any court of the United States or

any state thereof having jurisdiction over the Parties and the matter, in

addition to any other remedy to which it may be entitled, at law or in equity.

 

[Signature page follows]

 

3

 

IN WITNESS

WHEREOF, the Parties hereto have executed this Agreement as of the date first

above written.

 

 

	

   

  	

  INKTOMI

  CORPORATION

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

  By:

  	

  /s/ Michael

  Cunniff

  	

   

  
	

   

  	

   

  	

  Vice

  President

  
	

   

  	

   

  	

  and

  Corporate Controller

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

  E-CENTIVES,

  INC.

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

  By:

  	

  /s/ David

  Samuels

  	

   

  
	

   

  	

   

  	

  Chief

  Financial Officer

  
						

 

4EXHIBIT 10.2

 

SECOND AMENDMENT TO SUBLEASE

 

                                THIS SECOND AMENDMENT TO SUBLEASE (this

“Second Amendment”) is made as of June 25, 2002, by and between INKTOMI

CORPORATION, a Delaware corporation (“Sublandlord”), and E-CENTIVES, INC., a

Delaware corporation (“Subtenant” and, together with Sublandlord, the

“Parties”).

 

WITNESSETH

 

                                WHEREAS, Sublandlord and Spieker Properties,

L.P., a California limited partnership (“Master Landlord”) are parties to that

certain Lease, dated as of February 7, 2000 (the “Master Lease”), whereby

Sublandlord leased from Master Landlord certain premises in the building known

as 555 Twin Dolphin Drive, Redwood City, California, as more particularly

described in the Master Lease (the “Premises”);

 

                                WHEREAS, Sublandlord subleased the Premises

to Subtenant pursuant to the terms of that certain Sublease, dated March 28,

2001, as amended (the “Sublease”).  All

capitalized terms used but not otherwise defined herein shall have the meanings

ascribed to them in the Sublease;

 

                                WHEREAS, Master Landlord consented to the

Sublease pursuant to the terms of that certain Consent to Sublease Agreement,

dated as of March 28, 2001, by and among Master Landlord, Sublandlord and

Subtenant;

 

WHEREAS, the

Parties now wish to amend the Sublease to, among other things, provide for an

early termination of the Sublease, as provided in this Second Amendment.

 

                                NOW, THEREFORE, in consideration of the

premises and for other good and valuable consideration, the receipt and

sufficiency of which is hereby acknowledged, the Parties agree as follows:

 

1.                                       Representations

and Warranties.  Each of the Parties

represents and warrants to each other that such Party has full power and

authority (including full corporate power and authority) to execute and deliver

this Second Amendment and to perform its obligations hereunder, and that this

Second Amendment constitutes the valid and legally binding obligation of such

Party, enforceable in accordance with its terms and conditions.

 

2.                                       Amendments

to Sublease.  Notwithstanding anything

to the contrary contained in the Sublease, the Parties hereby agree to amend

the Sublease as follows:

 

(a)                                  Section

1.4 of the Sublease is hereby deleted in its entirety and the following is

inserted in lieu thereof:

 

 

1.4  Term:  Approximately 1 year and 8 months after the

Commencement Date, beginning on the Commencement Date and ending on the

Expiration Date unless terminated earlier in accordance with the terms and

conditions of this Sublease.

 

(b)                                 Section

1.6 of the Sublease is hereby deleted in its entirety and the following is

inserted in lieu thereof:

 

1.6  Expiration Date:  November 30, 2002.

 

(c)                                  The

Parties hereto acknowledge and agree that in consideration for the loss of

rental income to Sublandlord as a result of the early termination of the

Sublease, immediately upon the execution of this Second Amendment, and without

the necessity for any further action or authorization from Subtenant,

Sublandlord shall be entitled to draw down and convert to cash the entire

amount of the LOC (which amount is $1,007,282.00) in accordance with the terms

of the LOC, and retain such amount for its own benefit, and in no event shall

Sublandlord be required to return any portion of such amount to Subtenant.  In addition, within ten (10) business days

after the date hereof, Subtenant shall place into escrow a cash amount equal to

$677,976.00, representing rental payments due under the Sublease for the months

of August, September, October & November of 2002 (which sums shall be

reserved for payment of rent hereunder), together with irrevocable instructions

to the escrow agent to distribute from the escrow an amount equal to

$169,494.00 to Sublandlord on the first (1st) day of each of said

months.  The parties acknowledge that

Subtenant’s legal counsel, Kelley Drye & Warren, may serve as escrow agent.

 

(d)                                 The

Parties reaffirm the right of Sublandlord, pursuant to Section 2.3 of the

Sublease, to show the Premises to prospective tenants at reasonable times

during the Term upon reasonable prior notice. 

Notwithstanding anything to the contrary contained in the Sublease, in

the event that Sublandlord procures a new tenant to occupy all or any portion

of the Premises prior to the Expiration Date, Sublandlord shall have the right

(in its sole and absolute discretion) to terminate this Sublease at any time

prior to the Expiration Date with 60 days prior written notice to

Subtenant.  In the event of a

termination under this Section 2(d), Subtenant shall remain liable to

Sublandlord for all Rent due under this Sublease through the Expiration Date,

less the amount of any rent or similar payments paid by any new tenant

occupying all or part of the Premises for all or part of the period commencing

on the date of such termination and ending on the Expiration Date.

 

(e)                                  Subtenant

hereby acknowledges and agrees that on the Expiration Date, Subtenant shall

surrender, transfer and convey to Sublandlord all of the property described on Schedule

A attached hereto (the “Remaining

 

2

 

Personal

Property”), provided however, that Subtenant shall be entitled to remove, and

retain title to, all property not otherwise designated as Remaining Personal

Property.   Title to the Remaining

Personal Property shall be conveyed to Sublandlord pursuant to a bill of sale

in the form attached hereto as Exhibit “A.”

 

3.                                       Effect

of Amendment. Except as expressly modified herein, all other terms and

conditions of the Sublease shall remain unmodified and in full force and

effect, provided however that once the Sublease is terminated Subtenant shall

have no further obligation thereunder, or under the Master Lease, to either

Sublandlord or Master Landlord, and each of Sublandlord and the Master Landlord

shall have no further obligation thereunder, or under the Master Lease, to

Subtenant.

 

4.                                       Release.

Upon payment in full to Sublandlord of the rental payment obligations set forth

herein, compliance by Subtenant with all of its obligations under the Sublease

(including, but not limited to, those obligations relating to surrender of the

Premises) and the release of shares of common stock from the Indemnity Fund, as

that term is defined in the Escrow Agreement, dated March 28, 2001 between the

parties (the “Escrow Agreement”), (i) the Master Landlord and Sublandlord, on

their own behalf and on behalf of their affiliates, present and former parent

companies, related entities, subsidiaries, assigns, predecessors and

successors, hereby releases and forever discharges Subtenant and its

affiliates, present and former parent companies, related entities,

subsidiaries, assigns, predecessors and successors, of and from any and all

manner of action or actions, claims, demands, damages, losses, actions, causes

of action or suits of whatever kind or nature, whether known or not known to

date hereof, which the Master Landlord and Sublandlord may have by reason of

any matter, fact, cause or thing of any conceivable kind or character

whatsoever, and/or relating to the Sublease, including this Second Amendment

thereto, and with respect to Sublandlord only, the subject matter of the Stock

Release Agreement between the Sublandlord and Subtenant date June 25, 2002,

entered into concurrently with this Second Amendment (the “Stock Release

Agreement”), including any all provisions related thereto in the Escrow

Agreement, the Resale Restrictions Agreement (as defined in the Stock Release

Agreement), and the Asset Purchase Agreement (as defined in the Stock Release

Agreement) and (ii) Subtenant, on its own behalf and on behalf of its affiliates,

present and former parent companies, related entities, subsidiaries, assigns,

predecessors and successors, hereby releases and forever discharges each of

Sublandlord and the Master Landlord, and their respective affiliates, present

and former parent companies, related entities, subsidiaries, assigns,

predecessors and successors, of and from any and all manner of action or

actions, claims, demands, damages, losses, actions, causes of action or suits

of whatever kind or nature, whether known or not known to date hereof, which

Subtenant may have by reason of any matter, fact, cause or thing of any

conceivable kind or character whatsoever, and/or relating to the Sublease,

including this Second Amendment thereto, and with respect to Sublandlord only, 

 

3

 

the subject

matter of the Stock Release Agreement, including any all provisions related

thereto in the Escrow Agreement, the Resale Restrictions Agreement (as defined

in the Stock Release Agreement), and the Asset Purchase Agreement (as defined

in the Stock Release Agreement).

 

5.                                       Conflict

or Inconsistency.  In the event that

there is any conflict or inconsistency between the terms and conditions of this

Second Amendment and the terms and conditions of the Sublease, the terms and

conditions of this Second Amendment shall govern and control the rights and the

obligations of the parties.

 

6.                                       Cooperation.  The Parties shall cooperate with one another

in the execution of any further documents or instruments that any Party shall

reasonably request the other Party to execute and deliver, and in the

performance of any other reasonably requested action that may be deemed

necessary or advisable, in relation to the actions contemplated by this Second

Amendment.

 

7.                                       Counterparts.  This Second Amendment may be executed in two

or more counterparts, each of which shall be deemed an original but all of

which together will constitute one and the same instrument.

 

8.                                       Headings.  The section headings contained in this

Second Amendment are inserted for convenience only and shall not affect in any

way the meaning or interpretation of this Second Amendment.

 

9.                                       Governing

Law.  This Second Amendment shall be

governed by and construed in accordance with the domestic laws of the State of

California without giving effect to any choice or conflict of law provision or

rule (whether of the State of California or any other jurisdiction) that would

cause the application of the laws of ay jurisdiction other than the State of

California.

 

10.                                 Amendments

and Waivers.  No amendment of any

provision of this Second Amendment shall be valid unless the same shall be in

writing and signed by the Parties.  No

waiver by any Party of any default, misrepresentation, or breach of warranty or

covenant hereunder, whether intentional or not, shall be deemed to extend to

any prior or subsequent default, misrepresentation, or breach of warranty or

covenant hereunder or affect in any way any rights arising by virtue of any

prior or subsequent such occurrence.

 

11.                                 Severability.  Any term or provision of this Second

Amendment that is invalid or unenforceable in any situation in any jurisdiction

shall not affect the validity or enforceability of the remaining terms and

provisions hereof or the validity or enforceability of the offending term or

provision in any other situation or in any other jurisdiction.

 

12.                                 Expenses.  Each of the Parties will bear its own costs

and expenses (including legal fees and expenses) incurred in connection with

this Second Amendment.

 

4

 

13.                                 Construction.  The Parties have participated jointly in the

negotiation and drafting of this Second Amendment.  In the event an ambiguity or question of intent or interpretation

arises, this Second Amendment shall be construed as if drafted jointly by the

Parties and no presumption or burden of proof shall arise favoring or

disfavoring any Party by virtue of the authorship of any of the provisions of

this Second Amendment.

 

14.                                 Specific

Performance.  Each of the Parties

acknowledges that the other Party would be damaged irreparably in the event any

of the provisions of this Second Amendment are not performed in accordance with

their specific terms or otherwise are breached.  Accordingly, each of the Parties agrees that the other Party

shall be entitled to an injunction or injunctions to prevent breaches of the

provisions of this Second Amendment and to enforce specifically this Second

Amendment and the terms and provisions hereof in any action instituted in any court

of the United States or any state thereof having jurisdiction over the Parties

and the matter, in addition to any other remedy to which it may be entitled, at

law or in equity.

 

[Signature page follows]

 

5

 

                                IN WITNESS WHEREOF, the Parties hereto have

executed this Second Amendment as of the date first above written.

 

	

   

  	

   

  	

  “Subtenant”

  
	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

  E-CENTIVES,

  INC.,

  
	

   

  	

   

  	

  a Delaware

  corporation

  
	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

  By:

  	

  /s/David

  Samuels

  	

   

  
	

   

  	

   

  	

   

  	

  Chief

  Financial Officer

  
	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

  “Sublandlord”

  
	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

  INKTOMI

  CORPORATION,

  
	

   

  	

   

  	

  a Delaware

  corporation

  
	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

  By:

  	

  /s/ Michael

  Cunniff

  	

   

  
	

   

  	

   

  	

   

  	

  Vice

  President

  
	

   

  	

   

  	

   

  	

  and

  Corporate Controller

  

 

6

 

EXHIBIT A

 

BILL OF SALE

 

THIS BILL OF

SALE (“Bill of Sale”) is made and entered into as of the 25th day of

June, 2002, by E-CENTIVES, INC., a Delaware corporation (“Seller”), to

and for the benefit of INKTOMI CORPORATION, a Delaware corporation (“Buyer”).

 

R E C I T A L S

 

WHEREAS,

pursuant to the terms of that certain Sublease, dated March 28, 2001 (the

“Sublease”), Seller is the present sublessee of certain real property located

in the building known as 555 Twin Dolphin Drive, Redwood City, California (the

“Premises”);

 

WHEREAS,

Seller and Buyer entered into that certain Second Amendment to Sublease, dated

as of June 25, 2002 (the “Second Amendment”), whereby, among other

things, Seller agreed to convey the “Remaining Personal Property” (as

hereinafter defined) as partial consideration for Buyer entering into the

Second Amendment; and

 

WHEREAS,

Seller desires to convey all of Seller’s right, title and interest in, to and

under the Remaining Personal Property to Buyer, effective as of the “Expiration

Date”(as such term is defined in the Second Amendment).

 

NOW,

THEREFORE, for good and valuable consideration, the receipt and sufficiency of

which are hereby acknowledged, Seller hereby agrees as follows:

 

A G R E E M E N T

 

1.               Effective

as of the Expiration Date, Seller does hereby unconditionally, absolutely, and

irrevocably grant, bargain, sell, transfer, assign, convey, set over and

deliver unto Buyer all of Seller’s right, title and interest in and to any and

all of the furniture, fixtures, equipment, supplies and other items of tangible

personal property owned by Seller, located at the Premises, and described on Schedule

A attached hereto (collectively, the “Remaining Personal Property”).

 

2.               Seller

represents and warrants to Buyer that Seller has good, valid and marketable

title to all of the Remaining Personal Property and has transferred to and

vested in Buyer good and marketable title to each item of the Remaining

Personal Property herein con­veyed, free and clear of any and all options,

liens, mortgages, pledges, security interests, prior assignments, encumbrances,

covenants, restrictions, claims and any other 

 

7

 

matters

affecting title.  Seller warrants that

it has full power and authority to sell the Remaining Personal Property.  Seller is hereby conveying the Remaining

Personal Property to Buyer, to have and to hold, absolutely and

unconditionally, and Seller does hereby bind itself, its successors and

assigns, to warrant and defend the title to such Remaining Personal Property to

Buyer and its successors and assigns against every person making claim thereto

forever.

 

3.               Seller

shall execute and deliver such further instruments of sale, conveyance,

transfer and assignment and take such other actions reasonably necessary to

ensure the clear transfer to Buyer of all right in and to the Remaining

Personal Property, as specified herein.

 

4.               This

Bill of Sale shall inure to the benefit of, and be binding upon, the parties

hereto and their respective successors and assigns.

 

5.               This

Bill of Sale and the legal relations between the parties hereto shall be

governed by and construed and enforced in accordance with the laws of the State

of California, without regard to its principles of conflicts of law.

 

6.               Seller

is a corporation duly organized, validly existing and in good standing under

the laws of the State of Delaware.

 

7.               In

the event that either party to this Bill of Sale shall institute any action or

proceeding against the other party arising out of or based upon this Bill of

Sale, or by reason of any default hereunder, the prevailing party in such

action or proceeding shall be entitled to recover from the other party all

costs of such action or proceeding, including reasonable attorneys’ fees.

 

[Signature page follows]

 

8

 

 

IN WITNESS

WHEREOF, this Bill of Sale was made and executed as of the date first above

written.

 

	

  Seller:

  	

   

  
	

   

  	

   

  	

   

  
	

  E-CENTIVES,

  INC.,

  	

   

  
	

  a Delaware

  corporation

  	

   

  
	

   

  	

   

  	

   

  
	

  By:

  	

  /s/ David

  Samuels

  	

   

  	

   

  
	

   

  	

  Chief

  Financial Officer

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

  Buyer:

  	

   

  
	

   

  	

   

  	

   

  
	

  INKTOMI

  CORPORATION,

  	

   

  
	

  a Delaware

  corporation

  	

   

  
	

   

  	

   

  	

   

  
	

  By:

  	

  /s/ Michael

  Cunniff

  	

   

  	

   

  
	

   

  	

  VP and

  Corporate Controller

  	

   

  
	

   

  	

   

  	

   

  

 

9

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