Document:

EXHIBIT
10.34

 

 

January 18, 2002

 

 

Mr. James R. Schmidt

Chief Executive Officer

HearMe

6200 Stoneridge Mall Road, Suite 3010

Pleasanton, CA 94588

 

Dear Jim:

 

Thank you for retaining Burr, Pilger & Mayer LLP (BPM) to assist
you with the liquidation of HearMe and its wholly owned subsidiaries including
but not limited to Catapult, Resounding, and AudioTalk.  This letter is to confirm our understanding
of the terms and objectives of our engagement and the nature and limitations of
the services we will provide.

 

BPM agrees to sign HearMe’s standard form of Confidential Information
and Invention Assignment Agreement for consultants and that its employees
performing services for HearMe thereunder shall be bound thereunder.

 

BPM agrees that it shall not resign from or terminate the engagement
hereunder without engaging a successor on behalf of HearMe.  In addition, BPM’s representative serving on
the Board of Directors of HearMe shall not resign without appointing an
additional director (to ensure that HearMe has at least one director at all
times).

 

BENEFITS OF WORKING WITH BPM

 

Although we have discussed many of these benefits, I thought it would
be beneficial to put them in writing so that if you need to pass this
engagement letter onto other members of your board, they too will have some of
the background information.

 

	
  1.

  	
   

  	
  BPM has extensive experience with regard to the
  liquidation of companies and the final wrap-up by holding them in a “trust”
  position.  Attached, as Exhibit A, is
  a listing of some of the engagements we have performed with similar types of
  work.

  
	
   

  	
   

  	
   

  
	
  2.

  	
   

  	
  BPM has experience with SEC reporting
  companies.  Currently we audit five
  reporting companies.  All of these are
  smaller companies that call upon us to assist them with various issues
  regarding their 10Q and 10K filings. 
  We are familiar with the requirements and, as in this case, we would
  be able to prepare these documents and correspond with the SEC for as long as
  the company is required to do so.

  
	
   

  	
   

  	
   

  
	
  3.

  	
   

  	
  BPM is a large enough company that, through its
  various departments, it is able to handle the many aspects of this
  engagement.  As we discussed, the
  primary components of the engagement are IT, accounting, bookkeeping,
  possibly HR, and CEO/CFO, Chairman of the Board requirements.  BPM, through its 150-person workforce, has
  a fully capable IT department, an HR consulting group, a separate bookkeeping
  and write-up department where we provide liquidation accounting services, and
  have the needed people to handle the SEC reporting and financial statements.  Thus, you can be assured we can provide
  all aspects of this engagement and will not be “farming” out portions to
  other consultants.

  

 

 

Mr. James R. Schmidt

January 18, 2002

Page 2

 

	
  4.

  	
   

  	
  Assurance that we will be in business.  BPM was formed 15 years ago and all of its
  founding partners are still quite young. 
  One of the important things in the wrap-up of a company is to make
  sure the key people will be around for the foreseeable future to ensure the
  job is handled in a consistent, professional and accurate manner.  You can be assured the members of our team
  and our firm will be around long after HearMe is liquidated.

  

 

 

SCOPE
OF WORK

 

	
  1.

  	
   

  	
  Act as the single Board member, CEO, CFO, and
  Secretary to assure all compliance matters are handled and the company meets
  its reporting requirements.

  
	
   

  	
   

  	
   

  
	
  2.

  	
   

  	
  Prepare monthly financial statements for the company
  and for as long as required and coordinate with the outside auditors for 10Q
  and annual audits.

  
	
   

  	
   

  	
   

  
	
  3.

  	
   

  	
  Prepare the annual tax returns for the next three years.

  
	
   

  	
   

  	
   

  
	
  4.

  	
   

  	
  Prepare or cause to be prepared all of the payroll
  filings for 2001.

  
	
   

  	
   

  	
   

  
	
  5.

  	
   

  	
  Establish a system to archive financial, personnel,
  and legal records of the company so they are accessible in the event of a
  dispute, tax inquiry, or former employee requiring historical data.

  
	
   

  	
   

  	
   

  
	
  6.

  	
   

  	
  Create an historical backup of existing computer
  files.  These files should be
  accessible for the next several years to retrieve information.

  
	
   

  	
   

  	
   

  
	
  7.

  	
   

  	
  Collect remaining accounts receivable and coordinate
  payables.

  
	
   

  	
   

  	
   

  
	
  8.

  	
   

  	
  Maintain the company’s accounting systems, monthly
  accounts receivable and accounts payable ledgers, and other financial
  responsibilities as necessary during the final wrap up phase after
  resignation of the company’s chief financial officer.

  
	
   

  	
   

  	
   

  
	
  9.

  	
   

  	
  Implement a file destruction system so that
  information no longer needed or required is disposed of properly.

  
	
   

  	
   

  	
   

  
	
  10.

  	
   

  	
  Make final distributions to shareholders.

  
	
   

  	
   

  	
   

  
	
  11.

  	
   

  	
  Assist and handle special projects as necessary.

  

 

 

STAFF
ASSIGNED

 

The orderly liquidation of a company, such as HearMe, involves a team
effort of accountants, human resources, technology, and administrative
personnel.  BPM has developed an
integrated team approach to coordinate the many issues, problems, and
situations that arise in liquidation. Below are some of the key personnel who
will be assigned to this project.

 

Stephen D. Mayer, Managing Partner, has extensive
experience in the liquidation and wind down of many companies and will
coordinate the overall effort from BPM.

 

Venita Baldwin, Partner in charge of Human Resources
Consulting group, will oversee and coordinate the HR aspects of this
engagement.

 

 

 

Mr. James R. Schmidt

January 18, 2002

Page 3

 

 

Ken Nangle, Senior Director, Computer Consulting
Services group, will coordinate the IT aspects of this engagement.  He has over 25 years of computer consulting
experience.

 

Grace Kosakura, Senior Accountant in our Outsource
Accounting Group (OAS) will oversee the day-to-day activities in the accounting
areas including financial statements, accounts payable, cash management, tax
returns, and coordination with the outside accounts.

 

Rebecca Simon, a Manager in our Accounting Department,
who will oversee the accounting and tax aspects of this engagement.

 

Other staff, at the appropriate level, will be
assigned once the job is fully scoped and we begin work.

 

 

FEES

 

Our fees for professional
services are based on the hourly rate of the individual performing the work
times the number of hours incurred.  Our
rates are adjusted on a periodic basis when we adjust the compensation levels
of our personnel.  These adjustments are
made in July and January based on market conditions.  At this time our rates range from $75 per hour at the beginning
staff level to $375 at the senior partner level.  In addition, direct out-of-pocket expenses such as travel,
tax-processing fees, outside consultants, lodging, and other similar expenses
are billed at our cost.  Indirect expenses
such as telephone, fax, postage, photocopy, and technology services are billed
at 3% of our fees.

 

It is always difficult to
estimate the exact fees of a project such as this; however, based on our
previous experience, below is a general overview for the three phases of this
project.

 

Phase I

Consists of the initial
project and involves an intensive effort of coordination between our staff and
your remaining employees.  This phase
usually lasts about 60 days and results in “passing the baton” from your
company to ours.

 

Phase
II

This is the wind down
phase.  During this time, the company
completes the liquidation of its assets and pays its liabilities.  This phase includes the wind down of the
employee benefit plans, destruction of some records, the quarterly filings, and
vacating the premises.  This phase
usually lasts six to 12 months.

 

Phase
III

This is the hibernation
phase.  During this phase, which usually
lasts two to three years, the company has little activity and our tasks would
be tax filings, occasional requests for information, collecting the last few
assets and/or paying the last few liabilities, reporting to shareholders, and
other tasks related to the final dissolution of the company, including any
future distributions to the shareholders.

 

This type of engagement
requires a different approach to fees. 
We suggest the following:

 

	
   

  	
  A.

  	
   

  	
  A transition fee totaling $35,000 to cover our
  services for December 2001, January 2002, and February 2002.  This will encompass all transition
  services comprised of accounting, bookkeeping, HR, IT, and Board role.  This will include the hand off to our firm
  from you, your employees, and Board members.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  B.

  	
   

  	
  A monthly fee of $12,500 for the months of March
  2002 through March 2003.

  

 

 

Mr. James R. Schmidt

January 18, 2002

Page 4

 

 

	
   

  	
  C.

  	
   

  	
  A monthly fee of $6,000 for the months of April 2003
  through March 2005.  The assumption
  here is that the project will end March 2005.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  D.

  	
   

  	
  Our normal hourly rates for projects such as:

  
	
   

  	
   

  	
   

  	
  1.

  	
  SEC reporting past September 2002.

  
	
   

  	
   

  	
   

  	
  2.

  	
  Special audits for tax authorities or governmental
  agencies.

  
	
   

  	
   

  	
   

  	
  3.

  	
  Special research of IT related issues including
  retrieving back-ups.

  
	
   

  	
   

  	
   

  	
  4.

  	
  Assisting with litigation related projects.

  
	
   

  	
   

  	
   

  	
  5.

  	
  Cash distributions to shareholders.

  
	
   

  	
   

  	
   

  	
  6.

  	
  Other projects beyond the scope outlined in A, B,
  and C above.

  

 

 

If the foregoing is in accordance with your understanding, please sign
the copy of this letter in the space provided and return it to us along with a
retainer check in the amount of $35,000. 
This retainer will be applied to fees through February 2002, as outlined
above in item A.  Please contact Steve
Mayer if you have questions.

 

Thank you for the
opportunity to assist in this effort. 
BPM looks forward to working with you and your company.

 

Very truly yours,

 

 

 

Burr, Pilger & Mayer LLP

 

 

 

 

 

BPM:abj

F:\02\145030\engage

 

 

 

ACKNOWLEDGED:

 

HearMe

 

	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  James R. Schmidt, CEO

  	
   

  	
  Date

  

 

EXHIBIT A

 

 

 

 

        Arnelle,
Hastie, McGee, Willis & Greene

BPM is currently wrapping
up the liquidation of this medium-sized law firm located in San Francisco and
Los Angeles. BPM was called upon to provide an orderly liquidation which
included selling all of the assets, collecting all of the receivables and
negotiating with creditors and banking relations for the orderly payment of the
firm’s obligations.

 

        Dinkelspiel,
Donovan & Reder

This was a medium-sized
law firm located in San Francisco.  BPM
was called upon to provide an orderly liquidation that included selling all
assets, collecting all receivables, and disposing of more than 10,000 boxes of
records in storage.

 

        Landsing
Pacific Fund, Inc.

This was a REIT that sold
its assets and began liquidation proceedings in late 1995 by creation of a
liquidating trust.  BPM was engaged to
perform outsource accounting services to assist with the initial liquidation,
close down of its company offices, including file retention, fixed asset
sale/disposition, preparation of all accounting data, tax returns for the
liquidating trust, and ensuring the timely periodic distribution of dividends
to the 12,000 shareholders of the original REIT.

 

        US Lend
Lease Investments, Inc.

USLI and its sister
company USL were wholly owned subsidiaries of one of the largest real estate
companies in Australia.  The USL
subsidiaries had assets in excess of $200 million.  We helped grow the company’s domestic presence and then after the
company decided to close their operations we assisted in the liquidation and
wrap up.

 

During a five-year period
of time, BPM acted as the outsource financial and administrative department for
these companies, providing all services including interaction with the auditors
(meeting both US and Australian standards), preparation of annual tax returns,
preparation of monthly financial statements, and all cash management.  In addition, BPM served on their boards
reporting to the Australian parent company.

 

        Flintkote
Corporation

This was the wholly owned
subsidiary of a large Canadian corporation. 
While in the process of being liquidated, it was determined they had
significant exposure to asbestos claims. 
BPM became the outsource accounting department and managed a $100
million fund of liquid assets that was reinvested on a periodic basis to
provide cash flow, pay the costs of the asbestos litigation, and settle
claims.  BPM was required to maintain a
database, perform daily accounting functions, prepare monthly financials, and
coordinate the annual audit with Coopers & Lybrand, LLP.

 

        PURUS,
Inc.

PURUS
was a publicly traded manufacturer who sold their product line in anticipation
of purchasing a new venture.  During
this interim period between product lines, BPM was engaged to out-source all
accounting and administrative functions. 
This included preparation of income tax returns, coordination with
auditors, assistance with 10K and 10Q filings, and employee benefit issues.EXHIBIT
10.35

 

FIRST
AMENDMENT TO LEASE

 

 

THIS FIRST
AMENDMENT TO LEASE (“Amendment”) is made and entered into this 18thday of January, 2002, by and between
MARTIN CBP ASSOCIATES, L.P., a Delaware limited partnership (“Landlord”), and
HEARME, a Delaware corporation, formerly known as Mpath Interactive, Inc.
(“Tenant”).

 

R E C I T A L S:

 

This First
Amendment is entered into on the basis of the following facts, understandings
and intentions of the parties:

 

A.            Landlord and Tenant entered into
that certain lease dated July 30, 1999 (the “Lease”) which demised those
certain premises designated as 685 Clyde Avenue located in Mountain View,
California, as more particularly described in the Lease (the “Premises”).

 

B.            Tenant has informed Landlord that it
is experiencing financial difficulties and desires to provide some limitation
on its liability should it become unable to perform its obligations under the
Lease. In exchange for such limitation of liability, Landlord has requested
Tenant to provide, and Tenant has agreed to provide, additional security for
the performance by Tenant of its obligations under this Lease, subject to such
limitation on liability.

 

C.            Landlord and Tenant have agreed to
amend the Lease upon the terms and conditions set forth herein.

 

                NOW, THEREFORE, for good and
valuable consideration, including the mutual covenants contained in the Lease,
Landlord and Tenant hereby agree as follows:

 

                1              Defined Terms. Except as expressly provided in
this First Amendment to the contrary, terms which are defined in the Lease
shall have the same meaning when used in this Amendment.

 

                2              Security Deposit. The Lease is hereby amended
with respect to the Security Deposit as follows:

 

                                2.1           The Summary of Basic Lease Term is
hereby amended to delete the current definition of the “Security Deposit” and
to insert the following in place thereof: “$104,000.00 in cash and a letter of
credit in the amount of $600,000.00.”

 

                                2.2           Section 3.6 of the Lease is hereby
deleted in its entirety and the following paragraphs are inserted in place
thereof:

 

“A.          Security
Deposit. Landlord acknowledges that Tenant has previously deposited with
Landlord a cash security deposit in the amount of One Hundred Four Thousand and
00/100 Dollars ($104,000.00) which is being held by Landlord to secure the
performance of the Tenant under the Lease (the “Cash 

 

 

1

 

Security Deposit”). Tenant has agreed to deposit, as
additional security for the performance by Tenant of its obligations under this
Lease, an irrevocable standby letter of credit in the amount of Six Hundred
Thousand and 00/100 Dollars ($600,000.00) (the “Letter of Credit”) complying
with the terms of this Section 3.6. For purposes of this Lease, the term
“Security Deposit” shall mean the Cash Security Deposit and the Letter of
Credit. If an Event of Tenant’s Default occurs, Landlord may use, apply or
retain all or any part of the Letter of Credit in addition to the Cash Security
Deposit for the payment of any rent or other sum in default, or for the payment
of any other amount which Landlord may spend or become obligated to spend by
reason of such Event of Tenant’s Default, or to compensate Landlord for any
other loss or damage which Landlord may suffer by reason of such Event of Tenant’s
Default. Tenant hereby waives the provisions of Section 950.7 of the California
Civil Code, and all other provisions of law, now or hereafter in force, which
provide that Landlord may claim from a security deposit (including the Letter
of Credit) only those sums reasonably necessary to remedy efaults in the
payment of rent, to repair damage caused by Tenant or to clean the Premises, it
being agreed that Landlord may, in addition, claim those sums reasonably
necessary to compensate Landlord for any other loss or damage, foreseeable or
unforeseeable, caused by the act or omission of Tenant or any officer,
employee, agent or invitee of Tenant. If Tenant is not otherwise in default,
the Security Deposit or any balance thereof shall be returned to Tenant within
thirty (30) days after the expiration of the Lease Term. Landlord shall not be
required to keep this Security Deposit separate from its general fund and
Tenant shall not be entitled to interest on such Security Deposit. Landlord’s
receipt and retention of the Security Deposit shall not create any trust or
fiduciary relationship between Landlord and Tenant. Upon termination of the
original Landlord’s (or any successor owner’s) interest in the Premises, the
original Landlord (or such successor) shall be released from further liability
with respect to the Security Deposit upon the original Landlord’s (or such
successor’s) compliance with California Civil Code Section 1950.7(d), or
successor statute and successor’s written assumption of Landlord’s obligations
with respect to the Security Deposit.

 

“B.          Letter
of Credit Provisions. The Letter of Credit shall be issued by a
money-center bank (a bank which accepts deposits, which maintains accounts,
which has a local Bay Area office which will negotiate a letter of credit and
whose deposits are insured by the FDIC) whose financial strength shall be
sufficient to meet liquidity demands with respect to issued letters of credit
(such as Bank of America, Wells Fargo Bank or Silicon Valley Bank) and which is
otherwise reasonably acceptable to Landlord. The Letter of Credit shall be
issued for a term of at least twelve (12) months and shall be in a form and
with such content reasonably acceptable to Landlord. In the event the Letter of
Credit, or any succeeding Letter of Credit, has an expiry date sooner than the
remaining term of the Lease plus thirty (30) days thereafter, Tenant shall
either replace the expiring Letter of Credit with another Letter of Credit in
an amount equal to the original Letter of Credit or renew the expiring Letter
of Credit, in any event no later than thirty (30) days prior to the expiration
of the term of the Letter of Credit then in

 

 

2

 

effect. If Tenant fails to deposit a replacement
Letter of Credit or renew the expiring Letter of Credit, Landlord shall have
the right to draw upon the expiring Letter of Credit for the full amount
thereof. If Tenant does not so provide Landlord with a substitute Letter of
Credit within such time period, then Landlord shall have the right to draw upon
the current Letter of Credit and hold the funds drawn as the Security Deposit.
If Landlord notifies Tenant in writing that the bank which issued the Letter of
Credit has become financially unacceptable (e.g., the bank is under
investigation by governmental authorities, the bank no longer has the financial
strength equivalent to Bank of America, Wells Fargo Bank or Silicon Valley Bank
or has filed bankruptcy or reorganization proceedings), then Tenant shall have
thirty (30) days to provide Landlord with a substitute Letter of Credit
complying with all of the requirements hereof. Landlord agrees to pay the
initial fee charged by the issuing bank in connection with the Letter of Credit
and any other bank fees (including transfer or assignment fees) associated
with, such Letter of Credit. The Letter of Credit shall be transferable,
irrevocable and unconditional, so that Landlord, or its successor(s) in
interest, may at any time draw on the Letter of Credit against sight drafts
presented by Landlord, accompanied by Landlord’s statement that said drawing is
in accordance with the terms and conditions of this Lease; no other document or
certification from Landlord shall be required to negotiate the Letter of Credit
and the Landlord may draw on any portion of the then uncalled upon amount
thereof without regard to and without the issuing bank inquiring as to the
right or lack of right of the holder of said Letter of Credit to effect such
draws or the existence or lack of existence of any defenses by Tenant with
respect thereto. The Letter of Credit shall not be mortgaged, assigned or
encumbered in any manner whatsoever by Tenant without the prior written consent
of Landlord.

 

“C.          Independent
Contract. Tenant acknowledges and agrees that the Letter of Credit
constitutes a separate and independent contract between Landlord and the
issuing bank, that Tenant is not a third party beneficiary of such contract,
and that Landlord’s claim under the Letter of Credit for the full amount due and
owing thereunder shall not be, in any way, restricted, limited, altered or
impaired by virtue of any provision of the Bankruptcy Code, including, but not
limited to, Section 502(b)(6) of the Bankruptcy Code. 

 

“D.          Transfer
of the Letter of Credit. The Letter of Credit shall be transferable to any
of the following parties: (i) any secured or unsecured lender of Landlord, (ii)
any assignee, successor, transferee or other purchaser of all or any portion of
the Building, or any interest in the Building, (iii) any partner, shareholder,
member or other direct or indirect beneficial owner in Landlord (to the extent
of their interest in the Lease), provided that such transferree agrees to be
bound by the provisions of this Section 3.6. Further, in the event of any sale,
assignment or transfer by the Landlord of its interest in the Premises or the
Lease, Landlord shall provide prompt written notice of such assignment or
transfer to Tenant and shall have the right to assign or transfer the Letter of
Credit to its grantee, assignee or transferee; and in the event of any sale,
assignment or transfer, the landlord so assigning or

 

 

3

 

transferring the Letter of Credit shall have no
liability to the Tenant for the return of the Letter of Credit, and Tenant
shall look solely to such grantee, assignee or transferee for such return, so
long as such grantee, assignee or transferee assumes in writing all of
Landlord’s obligations with respect to the Letter of Credit. Tenant shall use
reasonable efforts to cooperate with Landlord and the bank to effect the
transfer of the Letter of Credit, provided that Landlord shall be responsible
for all costs of the bank associated therewith.”

 

                3.             Personal Property. In addition to posting the
Letter of Credit and as additional security, Tenant hereby agrees that if an
Event of Tenant’s Default occurs and as a result thereof Landlord terminates
the Lease pursuant to its rights under Section 13.2, certain personal property
owned by Tenant and scheduled on Exhibit A shall be surrendered with the
Premises. Concurrently herewith, Tenant shall execute and deliver to Landlord a
bill of sale in the form attached hereto as Exhibit B whereby Tenant
conveys to Landlord all of Tenant’s right, title and interest in and to the
personal property identified on Exhibit A. Landlord shall hold such Bill
of Sale in escrow pursuant to the terms of this Paragraph 3. Upon early
termination of the Lease as a result of an Event of Tenant’s Default, the Bill
of Sale shall be deemed released to Landlord. Upon the natural expiration of
the Lease and provided Tenant has performed all of its obligations hereunder,
the Bill of Sale shall be returned to Tenant.

 

                4.             Default. Landlord and Tenant hereby agree that
the cure period set forth in Section 13.1A shall be reduced from 5 days to 1
business day and that if an Event of Tenant’s Default occurs Landlord shall
elect the remedy under Section 13.2C. to terminate the Lease. Upon termination
of the Lease under Section 13.2C, Landlord shall be entitled to retain the
entire Security Deposit and the personal property identified on Exhibit A
as described in Paragraph 3. Landlord agrees that the Security Deposit and
personal property retained by Landlord shall be accepted by Landlord in full
satisfaction of (i) all claims for future rent through the balance of the Lease
Term under Section 1951.2 and 1951.4 of the California Civil Code and (ii) any
other damage or loss which Landlord may suffer by reason of such Event of
Tenant’s Default and /or Landlord’s termination of the Lease as a result
thereof, subject to survival of those matters which, in accordance with the
terms of the Lease, were to survive the expiration or sooner termination of the
Lease. Notwithstanding anything contained herein to the contrary, in the event
Landlord is unable to obtain or keep the full benefit of the Security Deposit
for any reason (including without limitation an avoidance action brought by
Tenant, as debtor or debtor-in-possession, or any of its creditors, or a
trustee in bankruptcy), and Tenant does not provide substitute security or
payment within ten (10) days after written notice from Landlord of its
inability to obtain or keep any portion of the Security Deposit, then
Landlord's full claim under the Lease or under applicable law against Tenant as
a result of such Event of Tenant’s Default will be reinstated and immediately
enforceable against Tenant. If Tenant files or has filed against it a petition
under any chapter of Title 11 of the United States Code, or any similar
insolvency proceeding is commenced, within 100 days after Landlord obtains the
benefit of any portion of the Security Deposit, and Landlord is unable to
obtain or retain all or part of the Security Deposit, then any claims of the
officers, directors and/or shareholders ("Insiders") of Tenant
against Tenant in connection with such case or proceeding shall hereby be
subordinated to the claims of Landlord against Tenant, such that Landlord shall
have the right to full payment of its claims before any payment is made on
account of a claim of any of the Insiders in such

 

 

4

 

case or
proceeding. In the event Tenant becomes a debtor in a case under Title 11
of the United States Code within 100 days after any payment of any amount of
the Security Deposit to Landlord, then any period of limitations or laches
respecting any and all claims of Landlord against Tenant (including without
limitation any claims to recover preferences or fraudulent conveyances or
transfers) shall be tolled and suspended from the date of this amendment until
the date that an order for relief in the case under Title 11 of the United
States Code is entered.

 

                5.             Representations and Warranties. As of the date of
this Amendment:

 

                                5.1.          Authority. Each of Landlord and
Tenant represents and warrants to the other that it has full right, power and
authority to enter into this Amendment, and has obtained all necessary consents
and resolutions from its members required under the documents governing its
affairs in order to consummate this transaction, and the persons executing this
Amendment have been duly authorized to do so. The Agreement and the Lease are
binding obligations of such party, enforceable in accordance with their terms.

 

                                5.2
          No Assignments. Tenant
represents and warrants to Landlord that Tenant is the sole tenant under the
Lease, and Tenant has not sublet, assigned, conveyed, encumbered or otherwise
transferred any of the right, title or interest of Tenant under the Lease.

 

                                5.3           Lender Consent. Landlord
represents and warrants to Tenant that Landlord has received approval from its
lender for Landlord to enter into this Amendment. 

 

                6.             Interpretation of Amendment. This Amendment and
the Lease shall be construed as a whole in order to effectuate the intent of
the parties to amend the Lease in the manner specified in this Amendment. All
provisions of the Lease affected by this Amendment shall be deemed amended
regardless of whether so specified in this Amendment. Subject to the foregoing,
if any provision of the Lease conflicts with any provision of this Amendment,
the

provision of this
Amendment shall control.

 

                7.             No Further Amendment. Except as amended by this
Amendment, the Lease shall continue in full force and effect and in accordance
with its terms.

 

                8.             Effective Date of Amendment. The effective date of
this Amendment and each and every provision hereof, unless otherwise specified
herein, shall be the date first hereinabove set forth.

 

                9.             Counterparts. This First Amendment may be executed
in one or more counterparts. All counterparts so executed shall constitute one
contract, binding on all parties, even though all parties are not signatory to
the same counterpart. Execution and transmission by telecopier is permitted and
will create an effective First Amendment.

 

 

 

5

 

IN WITNESS
WHEREOF, the parties have duly executed this Amendment on the date first
written above.

 

LANDLORD:

 

MARTIN CBP
ASSOCIATES, L.P.,

a Delaware limited
partnership

 

By:          Martin/Cypress, LLC,

a California
limited liability company

Its: General
Partner

 

By:          TMG Partners,

a California corporation

Its: Managing Member

 

	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Its:

  	
   

  	
   

  

TENANT:

 

HEARME,

a Delaware
corporation

 

	
  By:

  	
   

  
	
   

  	
   

  
	
  Its:

  	
   

  

 

 

 

 

6

EXHIBIT A

LIST OF PERSONAL PROPERTY

	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  

7

EXHIBIT B

BILL OF SALE

 

                FOR VALUABLE CONSIDERATION,
receipt of which is hereby acknowledged, the undersigned, HEARME, a Delaware
corporation (“HearMe”) does on January ___, 2002, grant, convey, transfer,
assign, bargain, sell, deliver and set over unto MARTIN CBP ASSOCIATES, L.P., a
Delaware limited partnership, its successors and assigns (“Martin CBP”)
forever, all of the HearMe’s right, title, and interest in and to the personal
property described on Schedule 1 attached hereto (the “Personal Property”)
located in and upon and used in connection with the operation of all the
improvements on the land located in Mountain View, California, generally known
as 685 Clyde Avenue.

 

EXCEPT AS STATED BELOW, ALL OF THE
PERSONAL PROPERTY IS USED AND IS CONVEYED AND ACCEPTED “AS IS” WITHOUT ANY
WARRANTIES OR REPRESENTATIONS OF WHATSOEVER KIND OR NATURE, INCLUDING, WITHOUT
LIMITATION, AS TO MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE, WHETHER
EXPRESS OR IMPLIED, OR WHETHER WRITTEN OR ORAL, CONCERNING ANY AND ALL DEFECTS
OF A PHYSICAL NATURE, WHETHER IN MATERIAL OR WORKMANSHIP AND WHETHER OR NOT
SUCH DEFECT WOULD BE VISIBLE OR APPARENT UPON MARTIN CBP’S FULL INSPECTION AND
EXAMINATION OF THE PROPERTY.

 

HearMe does hereby represent and warrant to Martin CBP
that HearMe is the lawful owner of the Personal Property and that the Personal
Property is free and clear from all liens and encumbrances, and HearMe shall
indemnify, defend and hold Martin CBP harmless from and against any and all
claims, demands, costs, liabilities, losses, damages, penalties or expenses of
any kind, including without limitation reasonable attorneys’ and expert
witnesses’ fees which may be brought or made against Martin CBP or which Martin
CBP may incur, by reason of any defect in HearMe’s title to the Personal Property
as herein represented and warranted or as a result of a lien or encumbrance
thereon. 

 

This Bill of Sale shall in all respects be governed
by, and construed in accordance with the laws of the State of California,
including all matters of construction, validity and performance.

 

IN WITNESS WHEREOF, HearMe has caused this Bill of
Sale to be duly executed and delivered on the day and year first above written.

 

HEARME,

a Delaware
corporation

 

	
  By:

  	
   

  
	
   

  	
   

  
	
  Its:

  	
   

  

 

 

8

 

SCHEDULE 1

	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  

9

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00034-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00034-of-00352.parquet"}]]