Document:

Form of Note

 Exhibit 4.1 
  

THIS NOTE IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF A DEPOSITORY OR A NOMINEE OF A DEPOSITORY.
THIS NOTE IS NOT EXCHANGEABLE FOR NOTES REGISTERED IN THE NAME OF A PERSON OTHER THAN THE DEPOSITORY OR ITS NOMINEE, EXCEPT IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE, AND NO TRANSFER OF THIS NOTE (OTHER THAN A TRANSFER OF THIS NOTE AS
A WHOLE BY THE DEPOSITORY TO A NOMINEE OF THE DEPOSITORY OR BY A NOMINEE OF THE DEPOSITORY TO THE DEPOSITORY OR ANOTHER NOMINEE OF THE DEPOSITORY) MAY BE REGISTERED EXCEPT IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE. 
  
 Unless this Note is presented by an authorized representative of The Depository Trust
Company, a New York corporation (55 Water Street, New York, New York) (“DTC”), to the Corporation or its agent for registration of transfer, exchange or payment, and this Note is registered in the name of Cede & Co. or such other
name as requested by an authorized representative of DTC, and unless any payment is made to Cede & Co., ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL since the registered owner hereof,
Cede & Co., has an interest herein. 
  
 THIS NOTE IS NOT A SAVINGS
ACCOUNT OR A DEPOSIT, IS NOT AN OBLIGATION OF OR GUARANTEED BY ANY BANKING OR NONBANKING AFFILIATE OF BANK OF AMERICA CORPORATION, AND IS NOT INSURED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION OR ANY OTHER GOVERNMENTAL AGENCY. 
  

			
	 REGISTERED
	 	$9,100,000                
		
	 NUMBER __I-_____
	 	CUSIP 06050 MFK8

  
 BANK OF AMERICA
CORPORATION 
 MEDIUM-TERM SENIOR NOTE, SERIES K 
 (Indexed Note) 
  
 SEE THE
ATTACHED PRINCIPAL REPAYMENT AMOUNT RIDER for a description of the 
 PRINCIPAL REPAYMENT AMOUNT and its method of calculation.

  
 SEE THE ATTACHED SUPPLEMENTAL REDEMPTION AMOUNT RIDER for a
description of the 
 SUPPLEMENTAL REDEMPTION AMOUNT and its method of calculation 
  

	ORIGINAL	ISSUE DATE: December 28, 2005 

	MATURITY	DATE: December 28, 2011 

	CALCULATION	AGENT: Banc of America Securities LLC (“BAS”) 

	ADDITIONAL	TERMS: See Supplemental Redemption Amount Rider 

	MINIMUM	DENOMINATIONS: $1,000 and whole multiples of $1,000. 

  
 BANK OF AMERICA CORPORATION, a Delaware corporation (the “Corporation,” which term includes any successor corporation under the Indenture
referred to on the reverse hereof), for value received, hereby promises to pay on the Maturity Date to CEDE & CO., as nominee for The Depository Trust Company, or its registered assigns, (i) the principal amount of NINE MILLION ONE
HUNDRED THOUSAND AND 00/100 DOLLARS ($9,100,000), (ii) interest payments as set forth on the attached Supplemental Redemption Amount Rider and (iii) that supplemental redemption amount (the “Supplemental Redemption Amount”)
calculated according to the terms of the attached Supplemental Redemption Amount Rider. 
  
 Any principal, interest or Supplemental Redemption Amount not punctually paid or duly provided for shall be payable as provided in the Indenture. As used in this Note, “Business Day” means any weekday that
is not a legal holiday in New York, New York, Charlotte, North Carolina or any other place of payment of this Note and that is not a date on which banking institutions in those cities or any other place of payment with respect to this Note are
authorized or required by law or regulation to be closed. 

 The principal, interest and Supplemental Redemption Amount on this Note are payable in immediately
available funds in such coin or currency of the United States of America as at the time of payment is legal tender for payment of public and private debts at the office or agency of the Corporation designated as provided in the Indenture;
provided, however, that the principal, interest or Supplemental Redemption Amount may be paid, at the option of the Corporation, by check mailed to the person entitled thereto at his address last appearing on the registry books of the
Corporation relating to the Notes. Notwithstanding the preceding sentence, payments of the principal, interest and Supplemental Redemption Amount payable on the Maturity Date will be made by wire transfer of immediately available funds to a
designated account maintained in the United States upon (i) receipt of written notice by the Issuing and Paying Agent (as described on the reverse hereof) from the registered holder of this Note not less than one Business Day prior to the due
date of such principal and (ii) presentation of this Note to The Bank of New York, as Issuing and Paying Agent, 101 Barclay Street, New York, New York 10286 (the “Corporate Trust Office”). 
  
 For both this Note and Notes issued in certificated form, the payment of
principal, interest on and any other amounts due on or after the Maturity Date will be made only upon the presentation and surrender of such Note at the office of the Trustee or successor thereof, and with respect to this Note, in accordance with
the procedures of DTC. 
  
 References herein to “U.S.
dollars,” “U.S.$,” or “$” are to the coin or currency of the United States at the time of payment is legal tender for the payment of public and private debts. 
  
 Reference is hereby made to the further provisions of this Note set forth on the reverse hereof and on the attached Rider,
which shall have the same effect as though fully set forth at this place. 
  
 Unless the certificate of authentication hereon has been executed by the Trustee or an authenticating agent on behalf of the Trustee by manual signature, this Note shall not be entitled to any benefit under the
Indenture or be valid or obligatory for any purpose. 
  

 2 

 IN WITNESS WHEREOF, the Corporation has caused this Note to be duly executed, by manual or facsimile
signature, under its corporate seal or a facsimile thereof. 
  

			
	 [SEAL]
	 	 BANK OF AMERICA CORPORATION
  
 By:____________________________________
 Title: Senior Vice President

	 ATTEST:
	 	 

  
 By:___________________________ 
  
 Title: Assistant Secretary 
  

 3 

 Certificate of Authentication 
  
 This is one of the Securities of the series designated therein referred to in the within-mentioned Indenture. 
  
 Dated: December 28, 2005 
  
 THE BANK OF NEW YORK, 
 as Trustee 
  
 By:___________________________ 
  
                 Authorized Signatory 
  
  

 4 

 [Reverse of Note] 
  

BANK OF AMERICA CORPORATION 
 MEDIUM-TERM SENIOR NOTE, SERIES K 
 (Indexed Note) 
  
 SECTION 1. General. This Note is one of a duly authorized series of Securities of the Corporation unlimited in
aggregate principal amount (herein called the “Notes”) issued and to be issued under an Indenture dated as of January 1, 1995 (herein called the “Indenture”), between the Corporation (successor in interest to NationsBank
Corporation) and The Bank of New York, as Trustee (successor in interest to U.S. Bank Trust National Association, successor trustee to BankAmerica National Trust Company, herein called the “Trustee,” which term includes any successor
trustee under the Indenture), as supplemented by a First Supplemental Indenture dated as of September 18, 1998, a Second Supplemental Indenture dated as of May 7, 2001, and a Third Supplemental Indenture dated as of July 28, 2004, to
which Indenture and all indentures supplemental thereto reference is hereby made for a statement of the respective rights thereunder of the Corporation, the Trustee, and the holders of the Notes, and the terms upon which the Notes are, and are to
be, authenticated and delivered. This Note is also one of the Notes designated as the Corporation’s Senior Medium-Term Notes, Series K, initially limited in aggregate principal amount to $10,000,000,000. The Trustee initially shall act as
Security Registrar, Transfer Agent, and Issuing and Paying Agent in connection with the Notes. The Notes may bear different dates, mature at different times, bear interest at different rates, and vary in such other ways as are provided in the
Indenture. 
  
 SECTION 2. No Sinking Fund. This Note is not
subject to any sinking fund. 
  
 SECTION 3. Redemption.
This Note is not redeemable prior to the Maturity Date. 
  
 SECTION 5. Defeasance. The provisions of Article Fourteen of the Indenture do not apply to Securities of this Series. 
  
 SECTION 6. Events of Default. If an Event of Default (defined in the Indenture as (a) the Corporation’s failure to pay the principal of
(or premium, if any, on) the Notes; (b) the Corporation’s failure to pay interest on the Notes within 30 calendar days after the same becomes due; (c) the Corporation’s breach of its other covenants contained in this Note or in
the Indenture, which breach is not cured within 90 calendar days after written notice by the Trustee or the holders of at least 25% in outstanding principal amount of all Securities issued under the Indenture and affected thereby; and
(d) certain events involving the bankruptcy, insolvency or liquidation of the Corporation) shall occur with respect to the Notes, the principal of all the Notes may be declared due and payable in the manner and with the effect provided in the
Indenture. 
  
 SECTION 7. Modifications and Waivers. The
Indenture permits, with certain exceptions as therein provided, the amendment of the Indenture and the modification of the rights and obligations of the Corporation and the rights of the holders of the Notes under the Indenture at any time by the
Corporation with the consent of the holders of not less than 66 2/3% in aggregate principal amount of the Notes then outstanding and all other Securities then outstanding under 

  

 5 

 
the Indenture and affected by such amendment and modification. The Indenture also contains provisions permitting the holders of a majority in aggregate
principal amount of the Notes then outstanding and all other Securities then outstanding under the Indenture and affected thereby, on behalf of the holders of all such Securities, to waive compliance by the Corporation with certain provisions of the
Indenture and certain past defaults under the Indenture and their consequences. Any such consent or waiver by the holder of this Note shall be conclusive and binding upon such holder and upon all future holders of this Note and of any Note issued
upon the registration of transfer hereof or in exchange herefor or in lieu hereof whether or not notation of such consent or waiver is made upon this Note. 
  
 No recourse shall be had for the payment of the principal of, premium on (if any), interest, or other amounts payable on this Note, or for any claim based
hereon, or otherwise in respect hereof, or based on or in respect of the Indenture or any indenture supplemental thereto, against any incorporator, stockholder, officer, or director, as such, past, present, or future, of the Corporation or any
predecessor or successor corporation, whether by virtue of any constitution, statute or rule of law, or by the enforcement of any assessment or penalty or otherwise, all such liability being, by the acceptance hereof and as part of the consideration
for issue hereof, expressly waived and released. 
  
 SECTION 8.
Obligations Unconditional. No reference herein to the Indenture and no provision of this Note or of the Indenture shall alter or impair the obligation of the Corporation, which is absolute and unconditional, to pay the principal of, premium
(if any), interest, and other amounts payable on this Note at the times, place and rate, and in the coin or currency, herein prescribed. 
  
 SECTION 9. Authorized Denominations. The Notes are issuable only as registered Notes without coupons, and unless otherwise set forth above, only in
denominations of $1,000 and whole multiples of $1,000. As provided in the Indenture, and subject to certain limitations therein set forth, Notes are exchangeable for a like aggregate principal amount of Notes of different authorized denominations,
as requested by the holder surrendering the same. 
  
 SECTION 10.
Registration of Transfer. As provided in the Indenture and subject to certain limitations as therein set forth, the transfer of this Note is registrable in the register maintained by the Registrar, upon surrender of this Note for registration
of transfer at the office or agency of the Corporation designated by it pursuant to the Indenture, duly endorsed by, or accompanied by a written instrument of transfer in form satisfactory to the Corporation and the Trustee or the Security Registrar
requiring such written instrument of transfer duly executed by, the registered holder hereof or his attorney duly authorized in writing, and thereupon one or more new Notes of this series, of authorized denominations and for the same aggregate
principal amount, will be issued to the designated transferee or transferees. 
  
 This Note is being issued by means of a book-entry system with no physical distribution of certificates to be made except as provided in the Indenture. The book-entry system maintained by The Depository Trust Company
(“DTC”) will evidence ownership of the Notes, with transfers of ownership effected on the records of DTC and its participants pursuant to rules and procedures established by DTC and its participants. The Corporation will recognize
Cede & Co., as nominee of DTC, while the registered holder of the Notes, as the owner of the Notes for 

  

 6 

 
all purposes, including payment of principal, interest, and the Supplemental Redemption Amount, notices, and voting. Transfer of principal, interest, and the
Supplemental Redemption Amount to participants of DTC will be the responsibility of DTC, and transfer of principal, interest, and the Supplemental Redemption Amount payable to beneficial owners of the Notes by participants of DTC will be the
responsibility of such participants and other nominees of such beneficial owners. So long as the book-entry system is in effect, the selection of any Notes to be redeemed will be determined by DTC pursuant to rules and procedures established by DTC
and its participants. The Corporation will not be responsible or liable for such transfers or payments or for maintaining, supervising, or reviewing the records maintained by DTC, its participants, or persons acting through such participants.

  
 This Note may be exchanged in whole, but not in part, for
security-printed certificated Notes, only if (i) DTC notifies the Corporation or the Trustee that it is unwilling or unable to continue to act as depository for this Note in global form or if at any time DTC ceases to be a clearing agency
registered under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and in either such case, a successor depository is not appointed by the Corporation within 60 calendar days, or (ii) the Corporation executes and
delivers to the Trustee a written notification that this Note in global form shall be so exchangeable, or (iii) an Event of Default occurs and is continuing with respect to this Note in global form. In any such instance, an owner of a
beneficial interest in this Note will be entitled to physical delivery in certificated form of Notes equal in principal amount to such beneficial interest and to have such Notes registered in its name. Unless otherwise set forth above, Notes so
issued in certificated form will be issued in authorized denominations only and will be issued in registered form only, without coupons. 
  
 No service charge shall be made for any such registration of transfer or exchange, but the Corporation may require payment of a sum sufficient to cover
any tax, assessment, or other governmental charge, including, without limitation, any withholding tax, payable in connection therewith. 
  
 Prior to due presentment of this Note for registration of transfer, the Corporation, the Trustee, the Issuing and Paying Agent, and any agent of the
Corporation, the Trustee or any Issuing and Paying Agent may treat the person in whose name this Note is registered as the owner hereof for all purposes. 
  
 SECTION 11. Defined Terms. All terms used in this Note which are not defined herein but are defined in the Indenture shall have the meanings
assigned to them in the Indenture. 
  
 SECTION 12. Governing
Law. THIS NOTE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT GIVING EFFECT TO PRINCIPLES OF CONFLICTS OF LAWS. 
  
  

 7 

 ABBREVIATIONS 
  
 The following abbreviations, when used in the inscription on the face of the within Note, shall be construed as though they
were written out in full according to applicable laws or regulations: 
  

			
	 TEN COM—
	  	as tenants in common
	 TEN ENT—
	  	as tenants by the entireties
	 JT TEN—
	  	as joint tenants with right of survivorship and not as tenants in common
	UNIF GIFT MIN ACT—
                                        
     as Custodian for
                                        
        
	                                        
                 (Cust)                      
                                   (Minor)

	
	 Under Uniform Gifts to Minors Act

	
	 ____________________________
 (State)

	  
 Additional abbreviations may also be used though not in the
above list.

  

  
 ASSIGNMENT 
  
 FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and transfer(s) unto 
  
 [PLEASE PRINT OR TYPEWRITE NAME AND ADDRESS 
 INCLUDING ZIP CODE OF ASSIGNEE] 
  
  

  
  

  
  

  
 Please Insert Social Security or Other 
  
 Identifying Number of Assignee: ____________________________ 
  
 the within Note and all rights thereunder, hereby irrevocably constituting and appointing
__________________________________ Attorney to transfer said Note on the books of the Corporation, with full power of substitution in the premises. 
  

	Dated:_________________________	_________________________________________ 

  
 NOTICE: The signature to this assignment must correspond with the name as it appears upon the face of the within Note in every particular, without alteration or
enlargement or any change whatever and must be guaranteed. 
  

 8 

 BANK OF AMERICA CORPORATION 
 Medium-Term Senior Note, Series K 
  
 SUPPLEMENTAL REDEMPTION AMOUNT RIDER 
  
 General 
  
 This Note is part of a series of
medium-term notes entitled “Medium-Term Notes, Series K” issued under the Indenture, as described in the Prospectus dated April 14, 2004 and Prospectus Supplement dated April 15, 2004 and is designated as the Bank of America
Corporation 1.50% Capital Protected EquitY PerformanCe LinkEd Securities “Basket CYCLESTM,” due December 28, 2011, Linked to a Basket of Health Care Stocks. Certain capitalized terms used
herein have the meanings ascribed to them in the Prospectus and the Prospectus Supplement. 
  
 Interest 
  
 This Note
bears interest from the Original Issue Date at a rate of 1.50% per annum. Interest is payable semi-annually in arrears on June 28 and December 28 of each year, and on the Maturity Date (each, an “interest payment date”),
beginning June 28, 2006. Interest is computed on the basis of a 360-day year of twelve 30-day months. 
  
 Each interest payment on an interest payment date will include interest accrued from, and including, the Original Issue Date or preceding interest payment
date, as the case may be, to, but excluding, that interest payment date. If an interest payment date falls on a day that is not a Business Day, the applicable payment will be made on the next Business Day as if it were the date that payment was due,
and no interest will accrue as a result of the postponement. 
  
 The record date for each interest payment date, including the interest payment date scheduled to occur on the Maturity Date, will be the date that is 15 calendar days prior to that scheduled interest payment date, whether or not that date
is a Business Day. However, the principal amount of this Note will be paid only to the holder of this Note on the Maturity Date. 
  
 Payment at Maturity; Supplemental Redemption Amount 
  
 At maturity, the Corporation will determine and pay: 
  

	 	(a)	the principal amount of this Note; 

  

	 	(b)	the final semi-annual payment of interest on this Note; and 

  

	 	(c)	under the circumstances described below, a “Supplemental Redemption Amount” 

  
 calculated by reference to the performance of a group, or “Basket” of the common stock of 25 selected United States health care
companies (each, a “Basket Stock”) over the term of this Note. The Basket Stocks are: Abbott Laboratories; Amgen Inc.; Baxter International Inc.; Becton, Dickinson and Company; Biogen Idec Inc.; Bristol-Myers Squibb Company; Cardinal
Health, 

  

 9 

 
Inc.; Caremark Rx, Inc.; CIGNA Corporation; Coventry Health Care, Inc.; Eli Lilly and Company; Forest Laboratories, Inc.; Genzyme Corporation; Gilead
Sciences, Inc.; HCA Inc.; McKesson Corporation; Medco Health Solutions, Inc.; Medtronic, Inc.; Merck & Co., Inc.; Pfizer Inc.; Quest Diagnostics Incorporated; Schering-Plough Corporation; Stryker Corporation; Wyeth; and Zimmer Holdings,
Inc. 
  
 On December 22, 2005, which is the “pricing
date” of this Note, the Corporation established the “Starting Level” of the Basket at 1,000. Each Basket Stock represents 4.00%, or 40.00, of the Starting Level of the Basket on the pricing date. The number of shares of each Basket
Stock was set by dividing 40.00 by the closing price (as defined below) of that Basket Stock on the pricing date. The result was rounded to the nearest one hundred-thousandth. This fixed number of shares is referred to as the “Share
Ratio.” The Share Ratio for each Basket Stock was fixed as of the pricing date and is subject to change only if certain extraordinary corporate events affect the relevant Basket Stock, as described below. 
  
 The “Basket Level” is the hypothetical value of the Basket that is
determined at the close of any Trading Day (as defined below). The Basket Level equals the sum of the products of the closing level and the Share Ratio for each Basket Stock. The Basket Level will be rounded to the nearest one-hundredth. 

 
 After the market closes on the final annual valuation date, the
Calculation Agent will determine the “Average Basket Return” and any Supplemental Redemption Amount. At maturity, the holder of this Note will be paid the principal amount of this Note, the final semi-annual interest payment, and any
Supplemental Redemption Amount. 
  
 The Calculation Agent will
determine any Supplemental Redemption Amount payable to the holder of this Note for each $1,000 principal amount of this Note at maturity by calculating the Average Basket Return and comparing it to the “Total Interest Percentage.” The
“Total Interest Percentage” is equal to 9.00%, and is the sum of the semi-annual interest payments over the term of this Note. The Calculation Agent will determine the “Average Level,” which is the arithmetic average of the
Basket Level on each of the six annual valuation dates set forth below (the sum of the Basket Level on each valuation date, divided by six): 
  
 Annual Valuation Dates 
  
 1. December 22, 2006 
  
 2. December 22, 2007 
  
 3. December 22, 2008 
  
 4. December 22, 2009 
  
 5. December 22, 2010 
  
 6. December 22, 2011 
  

 10 

 The Supplemental Redemption Amount, if any, will be based upon the Average Basket Return, which will be
calculated as follows: 
  
 Average Level – Starting
Level 
 Starting Level 
  
 The result will be rounded to the nearest ten-thousandth of a decimal place and then expressed as a percentage. 
  
 If the Average Basket Return is less than or equal to the Total Interest
Percentage (which is equal to 9.00%), then the Supplemental Redemption Amount will equal $0.00. 
  
 If the Average Basket Return is greater than the Total Interest Percentage, then the Supplemental Redemption Amount for each $1,000 principal amount of
the Notes will equal the product of: 
  
 $1,000 x (Average
Basket Return — Total Interest Percentage) 
  
 This Note
is principal protected. If the Average Basket Return does not exceed the Total Interest Percentage, the holder of this Note will receive only the principal amount and the final semi-annual interest payment at maturity. 
  
 A “Trading Day” means any day, as determined by the Calculation
Agent, on which trading generally is conducted on the New York Stock Exchange, Inc. (“NYSE”), the American Stock Exchange LLC, the Nasdaq National Market, the Chicago Mercantile Exchange, and the Chicago Board of Options Exchange, and in
the over-the-counter market for equity securities in the United States. 
  
 The “Closing Price” for any security for which a trading price must be determined to calculate the Basket Level will be: 
  

	 	•	 	if the security is listed or admitted to trading on a national securities exchange, the last reported sale price, regular way, of the principal trading session on that day on the
principal United States securities exchange registered under the Exchange Act on which that security is listed or admitted to trading; or 

  

	 	•	 	if the security is a security of the Nasdaq National Market (and provided that the Nasdaq National Market is not then a national securities exchange), the Nasdaq official closing
price published by The Nasdaq Stock Market, Inc. on that day; or 

  

	 	•	 	if the security is not listed or admitted to trading on any national securities exchange or is not a security of the Nasdaq National Market, but is included in the OTC Bulletin
Board Service (the “OTC Bulletin Board”) operated by the National Association of Securities Dealers, Inc., the last reported sale price of the principal trading session on the OTC Bulletin Board on that day; or 

  

 11 

	 	•	 	if the security is listed or admitted to trading on any national securities exchange or is a security of the Nasdaq National Market, but the last reported sale price or Nasdaq
official closing price, as applicable, is not available as described above, the last reported sale price of the principal trading session on the over-the-counter market as reported on the Nasdaq National Market or the OTC Bulletin Board on that day.

  
 If a Market Disruption Event (as defined below)
has occurred with respect to any Basket Stock on a day that is required to be an annual valuation date as provided in the last paragraph under “—Market Disruption,” or if on any other Trading Day the Closing Price of a security cannot
be determined according to the immediately preceding provisions, then the Closing Price for that day will be the mean, as determined by the Calculation Agent, of the bid prices for the applicable security obtained from as many recognized dealers in
that security, but not exceeding three, as will make those bid prices available to the Calculation Agent; provided that if no such bids are available, then the Closing Price for that day will equal the Calculation Agent’s good faith estimate of
the value of that security as of that day. A bid of BAS, Banc of America Investment Services, Inc., or any other affiliates of the Corporation may be included in the calculation of the mean, but only if that bid is the highest of the bids obtained.
The term “security of the Nasdaq National Market” will include a security included in any successor to that system, and the term “OTC Bulletin Board Service” will include any successor to that service. 
  
 Event of Default 
  
 Upon the occurrence of an Event of Default (as defined in the Indenture), the holder of this Note only will be entitled to
receive the principal amount of the Note, and any accrued and unpaid interest, and will not be entitled to payment of any Supplemental Redemption Amount. 
  
 Market Disruption 
  
 With respect to any Basket Stock, “Market Disruption Event” means: 
  

	 	•	 	a suspension, absence, or material limitation of trading of any Basket Stock on the primary market for that Basket Stock for more than two hours of trading or during the one-half
hour period preceding the close of the principal trading session in that market; or a breakdown or failure in the price and trade reporting systems of the primary market for any Basket Stock as a result of which the reported trading prices for that
Basket Stock during the last one-half hour preceding the close of the principal trading session in that market are materially inaccurate; or the suspension, absence, or material limitation of trading on the primary market for trading in options
contracts or futures contracts related to any Basket Stock, if available, during the one-half hour period preceding the close of the principal trading session in the applicable market, or a material disruption in securities settlement, payment, or
clearance services in the United States, in each case as determined by the Calculation Agent in its sole discretion; and 

  

	 	•	 	 a determination by the Calculation Agent, in its sole discretion, that any event described in the preceding paragraph materially interferes or interfered with the

  

 12 

 
ability of BAS or any of its affiliates to unwind or adjust all or a material portion of any hedge with respect to this Note. 
  
 For purposes of determining whether a Market Disruption Event has occurred:

  

	 	•	 	a limitation on the number of hours or days of trading will not constitute a Market Disruption Event if it results from an announced change in the regular business hours of the
relevant exchange; 

  

	 	•	 	a decision to permanently discontinue trading in the relevant options contract will not constitute a Market Disruption Event; 

  

	 	•	 	limitations under any rule or regulation enacted or promulgated by the NYSE, any other self-regulatory organization, or the SEC on trading during significant market fluctuations
will constitute a suspension, absence, or material limitation of trading; 

  

	 	•	 	a suspension of trading in options contracts on a Basket Stock by the primary securities market trading in those options, if available, by reason of (a) a price change
exceeding limits set by that securities exchange or market, (b) an imbalance of orders relating to those contracts, or (c) a disparity in bid and ask quotes relating to those contracts will constitute a suspension, absence, or material
limitation of trading in options contracts related to that Basket Stock; and 

  

	 	•	 	a suspension, absence, or material limitation of trading on the primary securities market on which options contracts related to a Basket Stock are traded will not include any time
when that securities market is itself closed for trading under ordinary circumstances. 

  
 If a Market Disruption Event occurs or is continuing with respect to one or more Basket Stocks (a “Market Disruption Stock”) on a day that would
otherwise be an annual valuation date, then, in order to calculate the Basket Level as of that annual valuation date, the Calculation Agent instead will use the Closing Price of each Market Disruption Stock on the first Business Day after that day
on which no Market Disruption Event occurs or is continuing as to that Market Disruption Stock. The Calculation Agent will use the Closing Price for each Basket Stock that is not a Market Disruption Stock on the applicable annual valuation date.

  
 In no event, however, will the determination of the Closing
Price for any Market Disruption Stock be postponed by more than five Business Days. If any determination as to a Market Disruption Stock is postponed to the last possible day, but a Market Disruption Event occurs or is continuing on that day, that
day will nevertheless be the annual valuation date as to that Market Disruption Stock. The Calculation Agent will determine the Closing Price of the applicable Market Disruption Stock for that day as described in the last paragraph above under the
definition of “Closing Price.” If any determination of a Closing Price required to be made on the last scheduled annual valuation date is postponed due to a Market Disruption Event, the maturity date for this Note also will be postponed by
the same number of Business Days. 
  

 13 

 The Basket and Adjustments to the Basket 
  
 The “Basket” is comprised of the common stocks of the following Basket Stocks, as weighted below based on the
Closing Price of each Basket Stock on December 22, 2005, the Pricing Date, as determined by the Calculation Agent, to achieve a Basket Level of 1,000 on that date: 
  

								
	 Basket Stock

	  	Initial Price of
Basket Stock

	  	Weight

	 	 	Share Ratio

	 Abbott Laboratories
	  	40.74	  	4.00	%	 	0.98184
	 Amgen Inc.
	  	81.09	  	4.00	%	 	0.49328
	 Baxter International Inc.
	  	38.02	  	4.00	%	 	1.05208
	 Becton, Dickinson and Company
	  	60.65	  	4.00	%	 	0.65952
	 Biogen Idec Inc.
	  	45.47	  	4.00	%	 	0.87970
	 Bristol-Myers Squibb Company
	  	22.87	  	4.00	%	 	1.74902
	 Cardinal Health, Inc.
	  	68.58	  	4.00	%	 	0.58326
	 Caremark Rx, Inc.
	  	52.08	  	4.00	%	 	0.76805
	 CIGNA Corporation
	  	113.25	  	4.00	%	 	0.35320
	 Coventry Health Care, Inc.
	  	57.70	  	4.00	%	 	0.69324
	 Eli Lilly and Company
	  	57.12	  	4.00	%	 	0.70028
	 Forest Laboratories, Inc.
	  	41.79	  	4.00	%	 	0.95717
	 Genzyme Corporation
	  	73.73	  	4.00	%	 	0.54252
	 Gilead Sciences, Inc.
	  	55.40	  	4.00	%	 	0.72202
	 HCA Inc.
	  	51.85	  	4.00	%	 	0.77146
	 McKesson Corporation
	  	52.46	  	4.00	%	 	0.76249
	 Medco Health Solutions, Inc.
	  	56.08	  	4.00	%	 	0.71327
	 Medtronic, Inc.
	  	57.78	  	4.00	%	 	0.69228
	 Merck & Co., Inc.
	  	32.01	  	4.00	%	 	1.24961
	 Pfizer Inc.
	  	24.06	  	4.00	%	 	1.66251
	 Quest Diagnostics Incorporated
	  	52.41	  	4.00	%	 	0.76321
	 Schering-Plough Corporation
	  	20.88	  	4.00	%	 	1.91571
	 Stryker Corporation
	  	46.40	  	4.00	%	 	0.86207
	 Wyeth
	  	46.77	  	4.00	%	 	0.85525
	 Zimmer Holdings, Inc.
	  	69.57	  	4.00	%	 	0.57496

  
 If one of the events
described below occurs and the Calculation Agent determines that the event has a dilutive or concentrative effect on the theoretical value of a particular Basket Stock, the Calculation Agent will calculate a corresponding adjustment to the Share
Ratio of that Basket Stock as the Calculation Agent, in its sole discretion, determines appropriate to account for that dilutive or concentrative effect. For example, if an adjustment is required because of a two-for-one stock split of a Basket
Stock, then the number of shares of that Basket Stock will be adjusted to double the Share Ratio. The Calculation Agent also will determine the effective date of an adjustment and the substitution in the Basket of those shares, if applicable, in the
event of a consolidation or merger of the relevant Basket Stock. Upon making any adjustment, the Calculation Agent will give notice promptly to the Corporation and the Trustee, stating the adjustment to the Share Ratio or to the Basket Stocks in the
Basket. 
  
 If more than one event occurs that requires adjustment
to a particular Share Ratio, the Calculation Agent will adjust the number of those shares in the Basket in the order in which each event occurs, and on a cumulative basis. Thus, after adjusting the number of those shares in the 
  

 14 

 Basket for the first event, the Calculation Agent then will adjust the number of those shares in the
Basket for the second event. The second adjustment will be made to those shares in the Basket after the adjustment is made for the first event, and so on for each event. 
  
 For any dilution event described below, other than a consolidation or merger, the Calculation Agent will not have to adjust
the applicable Share Ratio unless the adjustment would result in a change of at least 0.1% to the number of shares that would apply without the adjustment. The Share Ratio resulting from any adjustment will be rounded up or down to the nearest
0.00001, with 0.000005 being rounded upward. 
  
 If an event
requiring an antidilution adjustment occurs, the Calculation Agent will make the adjustments with a view to offsetting, to the extent practical, any change in the economic position of the holder relative to this Note that results solely from that
event. The Calculation Agent, in its sole discretion, may modify the antidilution adjustments in this section as necessary to promote an equitable result. 
  
 The Calculation Agent will make all determinations, in its sole discretion, with respect to antidilution adjustments, including any determination as to
whether an event requiring adjustment has occurred or the nature of the adjustment required and how it will be made. In the absence of manifest error, those determinations will be conclusive for all purposes and will be binding on the holder of this
Note and the Corporation, without any liability on the part of the Calculation Agent. The holder of this Note will not be entitled to any compensation from the Corporation for any loss suffered as a result of any of the above determinations by the
Calculation Agent. The Calculation Agent will provide information about any adjustments it makes upon the written request of the holder of this Note. 
  
 The following are examples of events that may require an antidilution adjustment: 
  

	 	•	 	a subdivision, consolidation, or reclassification of a Basket Stock or a free distribution or dividend of any shares of a Basket Stock to its existing shareholders by way of bonus,
capitalization, or similar event; 

  

	 	•	 	a distribution or dividend to existing shareholders of a Basket Stock of shares of: 

  

	 	•	 	the Basket Stock, 

  

	 	•	 	other share capital or securities granting the right to payment of dividends and/or the proceeds of liquidation of a Basket Stock equally or proportionately with such payments to
its shareholders, or 

  

	 	•	 	any other type of securities, rights, or warrants in any case for payment (in cash or otherwise) at less than the prevailing market price as determined by the Calculation Agent;

  

	 	•	 	the declaration by an issuer of a Basket Stock of an extraordinary or special dividend or other distribution whether in cash or shares of its stock or other assets;

  

 15 

	 	•	 	a repurchase by an issuer of a Basket Stock of its stock whether out of profits or capital and whether the consideration for that repurchase is cash, securities, or otherwise;

  

	 	•	 	any other similar event that may have a dilutive or concentrative effect on the theoretical value of a Basket Stock; or 

  

	 	•	 	a consolidation of an issuer of a Basket Stock with another company, or a merger of an issuer of a Basket Stock with another company. 

  
 Stock Splits 
  
 If a Basket Stock is subject to a stock split, then the Calculation Agent
will adjust its Share Ratio to equal the sum of the prior Share Ratio—i.e., the number of shares before that adjustment—plus the product of (1) the number of new shares issued in the stock split with respect to one share of the
relevant Basket Stock, and (2) the prior Share Ratio. 
  
 Reverse Stock Splits 
  
 If a Basket Stock is
subject to a reverse stock split, then the Calculation Agent will adjust its Share Ratio to equal the product of the prior number of shares and the quotient of (1) the number of outstanding shares of the relevant Basket Stock outstanding
immediately after the reverse stock split becomes effective, divided by (2) the number of shares of the relevant Basket Stock outstanding immediately before the reverse stock split becomes effective. 
  
 Stock Dividends 
  
 If a Basket Stock is subject to a stock dividend payable in shares of its
stock, then the Calculation Agent will adjust the Share Ratio of that Basket Stock in the Basket to equal the sum of the prior number of shares plus the product of (1) the number of shares issued in the stock dividend with respect to one share
of the relevant Basket Stock, and (2) the prior number of shares. 
  
 Other Dividends and Distributions 
  
 A Share
Ratio will not be adjusted to reflect dividends or other distributions paid with respect to a Basket Stock, other than: 
  

	 	•	 	stock dividends as described above; 

  

	 	•	 	issuances of transferable rights and warrants as described in “—Transferable Rights and Warrants” below; 

  

	 	•	 	distributions that are spin-off events as described in “—Reorganization Events” below; and 

  

	 	•	 	extraordinary dividends as described below. 

  

 16 

 A dividend or other distribution with respect to a Basket Stock will be deemed to be an extraordinary
dividend if its per share value exceeds that of the immediately preceding non-extraordinary dividend, if any, for that Basket Stock by an amount equal to at least 10% of the Closing Price of that Basket Stock on the Business Day before the
ex-dividend date. The ex-dividend date for any dividend or other distribution is the first day on which the relevant Basket Stock trades without the right to receive that dividend or distribution. 
  
 If an extraordinary dividend occurs, the Calculation Agent will adjust the
relevant Share Ratio of that Basket Stock to equal the product of (1) the prior Share Ratio, and (2) a fraction, the numerator of which is the Closing Price of the relevant Basket Stock on the Business Day before the ex-dividend date and
the denominator of which is the amount by which that Closing Price exceeds the extraordinary dividend amount. 
  
 The extraordinary dividend amount of an extraordinary dividend for a particular Basket Stock equals: 
  

	 	•	 	for an extraordinary dividend that is paid in lieu of a regular quarterly dividend, the amount of the extraordinary dividend per share of that Basket Stock, minus the amount per
share of the immediately preceding dividend, if any, that was not an extraordinary dividend for that Basket Stock; or 

  

	 	•	 	for an extraordinary dividend that is not paid in lieu of a regular quarterly dividend, the amount per share of the extraordinary dividend. 

  
 To the extent an extraordinary dividend is not paid in cash, the Calculation
Agent will determine the value of any non-cash component. A distribution on a Basket Stock that is a stock dividend payable in shares of that Basket Stock, an issuance of rights or warrants or a spin-off event and an extraordinary dividend will
result in an adjustment to the number of shares only as described in “—Stock Dividends” above, “—Transferable Rights and Warrants” below, or “—Reorganization Events” below, as the case may be, and not as
described here. 
  
 Transferable Rights and Warrants

  
 If a Basket Stock issues transferable rights or warrants
to all shareholders of its Basket Stock to subscribe for or purchase its Basket Stock, then the Share Ratio for that Basket Stock will be adjusted on the Business Day immediately following the issuance of those rights or warrants so that the new
Share Ratio will equal the prior Share Ratio plus the product of (a) the prior Share Ratio and (b) the number of shares of that Basket Stock that can be purchased with the cash value of those warrants or rights distributed on a single
share of that Basket Stock. The number of shares that can be purchased will be based on the closing price of that Basket Stock on the date the new Share Ratio is determined. The cash value of those rights or warrants, if the warrants or rights are
traded on a national securities exchange, will equal the closing price of those warrants or rights, or, if the warrants or rights are not traded on a national securities exchange, will be determined by the Calculation Agent and will equal the
average (mean) of the bid prices obtained from three dealers at 3:00 p.m., New York City time, on the date the new Share Ratio is determined. However, if only two bid prices are available, then the cash value of 

  

 17 

 
those warrants or rights will equal the average (mean) of those bids and if only one bid is available, then the cash value of those warrants or rights will
equal that bid. A bid of BAS, BAI, or any of their affiliates may be included in the calculation of the mean, but only if that bid is the highest of the bids obtained. If no such bids are available, then the cash value of those rights or warrants
will equal the Calculation Agent’s good faith estimate of the value of that security as of that day. 
  
 Reorganization Events 
  
 Each of the following is a reorganization event for any Basket Stock: 
  

	 	•	 	the issuer of the Basket Stock’s capital stock is reclassified or changed; 

  

	 	•	 	the issuer of the Basket Stock has been subject to a merger, consolidation, or other combination and either is not the surviving entity or is the surviving entity but all of its
outstanding Basket Stock is exchanged for or converted into other property; 

  

	 	•	 	a statutory share exchange involving the outstanding Basket Stock and the securities of another entity occurs, other than as part of an event described above;

  

	 	•	 	the issuer of the Basket Stock sells or otherwise transfers its property and assets as an entirety or substantially as an entirety to another entity; 

  

	 	•	 	the issuer of the Basket Stock effects a spin-off—that is, issues to its shareholders the equity securities of another issuer, other than as part of an event described above;

  

	 	•	 	the issuer of the Basket Stock is liquidated, dissolved, or wound up or is subject to a proceeding under any applicable bankruptcy, insolvency, or other similar law; or

  

	 	•	 	another entity completes a tender or exchange offer for all the outstanding common shares of that Basket Stock. 

  
 Adjustments for Reorganization 
  
 If a reorganization event occurs with respect to any issuer of the Basket
Stock, then the Calculation Agent will adjust the applicable Share Ratio so as to reflect the amount and type of property or properties — whether it be cash, securities, other property, or a combination — that a prior holder of that Basket
Stock would hold after the reorganization event had occurred. This new property is referred to as the “distribution property.” 
  
 For purposes of making an adjustment required by a reorganization event, the Calculation Agent, in its sole discretion, will determine the value of each
type of distribution property. For any distribution property consisting of a security, the Calculation Agent will use the Closing Price of the security on the effective date of the reorganization. The Calculation Agent may value other types of
property in any manner it determines, in its sole discretion, to be appropriate. If a holder of the applicable Basket Stock may elect to receive different types or combinations of types of distribution property in the reorganization event, the
distribution 
  

 18 

 property will consist of the types and amounts of each type distributed to a holder that makes no election, as determined
by the Calculation Agent in its sole discretion. 
  
 If a
reorganization event occurs and the Calculation Agent adjusts the Share Ratio of that Basket Stock to consist of the distribution property distributed in connection with the reorganization event as described above, the Calculation Agent then will
make any further antidilution adjustments for later events that affect the distribution property, or any component of the distribution property, comprising the new Share Ratio. The Calculation Agent will do so to the same extent that it would make
adjustments if the applicable Basket Stock were outstanding and were affected by the same kinds of events. If a subsequent reorganization event affects only a particular component of the Share Ratio, the required adjustment will be made only for
that component. 
  
 For example, if the issuer of a Basket Stock
merges into another company and each share of the relevant Basket Stock is converted into the right to receive two common shares of the surviving company and a specified amount of cash, the applicable Share Ratio will be adjusted to consist of two
common shares of the surviving company and that specified amount of cash. The Calculation Agent will adjust the common share component of the new number of shares to reflect any later stock split or other event, including any later reorganization
event, that affects the common shares of the surviving company, to the extent described in this section as if the common shares of the merged company were the Basket Stock. In that event, the cash component will not be adjusted but will continue to
be a component of the Share Ratio (with no interest adjustment) in the Basket. 
  
 If a reorganization event occurs, the distribution property distributed in the event will be substituted for the relevant Share Ratio as described above. Consequently, references to a share of a Basket Stock means any
distribution property that is distributed in a reorganization event and comprises the adjusted Share Ratio for that stock. Similarly, references to a Basket Stock mean any successor entity in a reorganization event for that Basket Stock. 

 
 Role of the Calculation Agent 
  
 The Calculation Agent has the sole discretion to make all determinations
regarding this Note, including determinations regarding the Average Level, the Average Basket Return, the Supplemental Redemption Amount, Market Disruption Events, and Business Days. Absent manifest error, all determinations of the Calculation Agent
will be final and binding on the holder of this Note and the Corporation, without any liability on the part of the Calculation Agent. 
  
 The Corporation has initially appointed its affiliate, Banc of America Securities LLC, as the Calculation Agent, but the Corporation may change the
Calculation Agent at any time without notifying the holder of this Note. 
  

 19Asset Purchase Agreement, dated as of December 23, 2005

 Exhibit 10.1 
  
 EXECUTION COPY 
  
 ASSET PURCHASE AGREEMENT 
  
 This AGREEMENT (the “Agreement”) is dated as of December 23, 2005 by and among JupiterImages Corporation, an Arizona
corporation (“Buyer”), VA Software Corporation, a Delaware corporation (“Parent”), and Animation Factory, Inc., a Delaware corporation and wholly-owned subsidiary of Parent (“Seller”). 

 
 W I T N E S S E T H : 
  
 WHEREAS, Buyer desires to acquire, and Parent and Seller desire to sell, all
of the assets, properties and rights of Seller and Parent, as the case may be, relating to Seller’s business, which provides royalty-free, three-dimensional clipart, animated graphics, video backgrounds, Microsoft PowerPoint templates, and
e-mail and Web page backgrounds (the “Content”) for business and personal use directly and through affiliates on the Web site located at animationfactory.com and its affiliated Media Builder Network Web site, which provides free
on-line graphics tools and is located at mediabuilder.com (animationfactory.com and mediabuilder.com hereafter collectively, the “Web site”) (the Web site, the Content and all of the foregoing, hereafter collectively, the
“Business”), upon the terms and subject to the conditions set forth in this Agreement (the “Acquisition”); and 
  
 WHEREAS, the Board of Directors of Parent has determined that it is in the best interests of Parent and Seller to sell all of the Purchased Assets to
Buyer, upon the terms and subject to the conditions set forth in this Agreement. 
  
 NOW, THEREFORE, in consideration of the representations, warranties, covenants and agreements set forth herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto hereby agree as follows: 
  
 ARTICLE I 
  
 DEFINITIONS 
  
 1.01 Definitions. 
  
 The following terms, as used herein, have the following meanings:

  
 “Acquisition” is defined in the first
recital of the preamble to this Agreement. 
  
 “Affiliate” means, with respect to any Person, any Person directly or indirectly controlling, controlled by or under common control with such other Person. 
  
 “Allocation Statement” is defined in Section 2.06(b) of this Agreement. 
  
 “Ancillary Agreements” is defined in Section 7.01 of
this Agreement. 

 “Apportioned Obligations” is defined in Section 5.07(b) of this Agreement.

  
 “Assignment and Assumption Agreement and Bill of
Sale” means that certain Assignment and Assumption Agreement and Bill of Sale among Parent, Seller and Buyer in substantially the form attached hereto as Exhibit A. 
  
 “Assumed Contracts” means all contracts, agreements, leases, licenses, commitments, sales, purchase orders
and other instruments listed on Schedule 2.01. 
  
 “Assumed Liabilities” is defined in Section 2.03 of this Agreement. 
  
 “Balance Sheet” is defined in Section 3.17 of this Agreement. 
  
 “Basket” is defined in Section 8.03(c) of this Agreement. 
  
 “Benefit Arrangement” means an employment, severance or
similar contract, arrangement or policy and each plan or arrangement providing for severance pay, life insurance or health care coverage (including any self-insured arrangements), flexible spending accounts or cafeteria benefit programs under Code
Section 125, workers’ compensation, disability benefits, dependent care benefits, supplemental unemployment benefits, vacation benefits, pension or retirement benefits or providing for deferred compensation, profit-sharing, cash or stock
bonuses, stock options, stock appreciation rights, stock purchase or other forms of incentive compensation or post-retirement life insurance, health care or disability coverage that (i) is not an Employee Plan and (ii) is maintained or
contributed to by Seller or any of its ERISA Affiliates. 
  
 “Business” is defined in the first recital of the preamble to this Agreement. 
  
 “Buyer” is defined in the preamble to this Agreement. 
  
 “Buyer Indemnified Parties” is defined in Section 8.02(a) of this Agreement. 
  
 “Cap” is defined in Section 8.03(c) of this Agreement.

  
 “Cash Purchase Price” is defined in
Section 2.06 of this Agreement. 
  
 “Change of
Control” means either: (i) the acquisition of Parent by another entity by means of any transaction or series of related transactions (including, without limitation, any purchase of stock, reorganization, merger or consolidation or
stock transfer, but excluding any such transaction effected primarily for the purpose of changing the domicile of Parent), unless Parent’s stockholders of record immediately prior to such transaction or series of related transactions hold,
immediately after such transaction or series of related transactions, at least 50% of the voting power of the surviving or acquiring entity (provided that the sale by Parent of its securities for the purposes of raising additional funds shall not
constitute a Change of Control hereunder); or (ii) a sale of all or substantially all of the assets of Parent. 
  
 “Closing” is defined in Section 2.07 of this Agreement. 
  
 “Closing Date” means the date of the Closing. 
  

 2 

 “COBRA” is defined in Section 2.04 of this Agreement. 
  
 “Code” means the Internal Revenue Code of 1986, as amended.

  
 “Confidentiality Agreement” means the
confidentiality agreement between Buyer and Parent, dated September 26, 2005. 
  
 “Content” is defined in the first recital of the preamble to this Agreement. 
  
 “Contracts” means all material contracts, agreements, leases, licenses, commitments, sales, purchase orders and other instruments
primarily related to the Business or necessary for the operation of the Business as currently conducted by Parent and Seller or the ownership of the Purchased Assets. 
  
 “Copyright” is defined in Section 3.14(j) of this Agreement. 
  
 “Copyright Assignment Agreement” means that certain
Copyright Assignment Agreement among Parent, Buyer and Seller in substantially the form attached hereto as Exhibit B. 
  
 “Domain Name Assignment Agreement” means that certain Copyright Assignment Agreement among Parent, Buyer and Seller in substantially the
form attached hereto as Exhibit C. 
  
 “Employee Plan” means each “employee benefit plan” of Seller, as such term is defined in Section 3(3) of ERISA, that (i) is subject to any provision of ERISA and (ii) is maintained or contributed to
by either Seller or any of its ERISA Affiliates, as the case may be. 
  
 “ERISA” means the Employee Retirement Income Security Act of 1974, as amended. 
  
 “ERISA Affiliate” of any entity means any other entity that, together with such entity, would be treated as a single employer under
Section 414(b), (c), (m) or (o) of the Code. 
  
 “Escrow Agent” means JPMorgan Chase Bank, N.A. 
  
 “Escrow Agreement” means the Escrow Agreement by and among Buyer, Parent, Seller and the Escrow Agent, dated as of the date hereof, in substantially the form attached hereto as Exhibit D.

  
 “Escrow Amount” is defined in
Section 2.06 of this Agreement. 
  
 “Excluded
Assets” is defined in Section 2.02 of this Agreement. 
  
 “Excluded Liabilities” is defined in Section 2.04 of this Agreement. 
  
 “Financial Statements” is defined in Section 3.17 of this Agreement. 
  
 “GAAP” is defined in Section 3.17 of this Agreement. 
  

 3 

 “Indemnified Person” is defined in Section 8.03 of this Agreement. 
  
 “Indemnifying Person” is defined in Section 8.03 of
this Agreement. 
  
 “Intellectual Property” shall
mean: (i) trademarks and service marks, logos, trade dress, product configurations, trade names and other indications of origin, applications or registrations in any jurisdiction pertaining to the foregoing and all goodwill associated
therewith; (ii) inventions (whether or not patentable), discoveries, improvements, ideas, know-how, formula methodology, research and development, business methods, processes, technology, software (including password unprotected interpretive
code or source code, object code, development documentation, programming tools, drawings, specifications and data) and applications or patents in any jurisdiction pertaining to the foregoing, including re-issues, continuations, divisions,
continuations-in-part, renewals or extensions; (iii) trade secrets, including confidential information and the right in any jurisdiction to limit the use or disclosure thereof; (iv) copyrights in writings, designs, software, mask works or
other works, applications or registrations in any jurisdiction for the foregoing and all moral rights related thereto; (v) database rights; (vi) Internet Web sites, Web pages, domain names and applications and registrations pertaining
thereto and all intellectual property used in connection with or contained in all versions of the Company’s Web sites; (vii) all rights under agreements relating to the foregoing; (viii) books and records pertaining to the foregoing;
and (ix) claims or causes of action arising out of or related to past, present or future infringement or misappropriation of the foregoing. 
  
 “Intellectual Property Agreements” means the Copyright Assignment Agreement, the Domain Name Assignment Agreement and the Trademark
Assignment Agreement. 
  
 “Knowledge” means the
knowledge of Ali Jenab, Kathleen R. McElwee, Jim Maloney and Art Holden. 
  
 “Lien” means, with respect to any asset, any mortgage, lien (including any tax lien), pledge, charge, security interest or encumbrance of any kind in respect of such asset. 
  
 “Listed Intellectual Property” is defined in
Section 3.14(b) of this Agreement. 
  
 “Losses” is defined in Section 8.02 of this Agreement. 
  
 “Material Adverse Effect” means any change in or effect on the Business or the Purchased Assets that, individually or in the aggregate (taking into account all other such changes or effects), is
materially adverse to the business, assets, condition (financial or otherwise) or results of operations of the Business or the Purchased Assets taken as a whole, in any such case, other than (i) effects resulting from adverse changes in the
U.S. and applicable foreign economies generally and adverse changes in the industry in which Seller conducts the Business; (ii) effects resulting from the announcement or pendency of the transactions contemplated hereby; (iii) effects
resulting from acts of war, terrorism, or other force majeure; (iv) effects resulting from Seller’s or Parent’s compliance with this Agreement (whether through affirmative acts or acts of omission); (v) changes in Parent’s
stock price; (vi) Parent’s failure to meet published analyst’s expectations, estimates or projections, or Parent’s own internal financial expectations, estimates or projections; or (vii) stockholder litigation relating to
the transactions contemplated hereby; provided, however, that with respect to (i) and (iii) such 
  

 4 

 effects do not adversely affect the Business or the Purchased Assets, individually or in the aggregate, in a
disproportionate manner relative to other persons or entities engaged in businesses similar to those of the Business. 
  
 “Noncompetition Period” is defined in Section 5.05 of this Agreement. 
  
 “Parent” is defined in the preamble to this Agreement. 
  
 “Permits” is defined in Section 3.11 of this Agreement.

  
 “Permitted Liens” is defined in
Section 3.06 of this Agreement. 
  
 “Person”
means an individual, corporation, partnership, association, trust or other entity or organization, including a government or political subdivision or an agency or instrumentality thereof. 
  
 “Post-Closing Tax Period” is defined in Section 5.06(b) of this Agreement. 
  
 “Pre-Closing Tax Period” means (i) any Tax period
ending on or before the Closing Date and (ii) with respect to a Tax period that commences before but ends after the Closing Date, the portion of such period up to and including the Closing Date. 
  
 “Purchase Price” is defined in Section 2.06 of this
Agreement. 
  
 “Purchased Assets” means those
assets, properties and rights defined in Section 2.01 of this Agreement. 
  
 “Representatives” means Parent’s, Seller’s or Buyer’s respective officers, directors, employees, accountants, counsel, consultants, advisors, agents and Affiliates. 
  
 “Required Consent” is defined in Section 3.04 of this
Agreement. 
  
 “Seller” is defined in preamble to
this Agreement. 
  
 “Seller Indemnified Parties”
is defined in Section 8.02(b) of this Agreement. 
  
 “Seller Intellectual Property” is defined in Section 3.14 of this Agreement. 
  
 “Software Programs” is defined in Section 3.14 of this Agreement. 
  
 “Tax” means any federal, state, local or foreign income, gross receipts, franchise, estimated, alternative
minimum, add-on minimum, sales, use, transfer, registration, value added, excise, natural resources, severance, stamp, customs, duties, real property, personal property, capital stock, social security, unemployment, disability, payroll, license,
employee or other withholding, or other tax, of any kind whatsoever, and including any interest, penalties or additions to tax. 
  
 “Trademark” is defined in Section 3.14(i) of this Agreement. 
  

 5 

 “Trademark Assignment Agreement” means that certain Trademark Assignment Agreement among
Parent, Buyer and Seller in substantially the form attached hereto as Exhibit E. 
  
 “Transition Services Agreement” means that certain Transition Services Agreement among Parent, Buyer and Seller in substantially the form attached hereto as Exhibit F. 
  
 “Transferred Employees” is defined in Section 6.01 of
this Agreement. 
  
 “Transfer Taxes” is defined
in Section 5.06(c) of this Agreement. 
  
 “Web
site” is defined in the first recital of the preamble to this Agreement. 
  
 ARTICLE II 
  
 PURCHASE
AND SALE 
  
 2.01 Purchase and Sale. On the
terms and subject to the conditions of this Agreement, Seller and Parent, as the case may be, shall sell, convey, transfer, assign and deliver to Buyer, and Buyer shall purchase and accept from Seller and Parent, as the case may be, on the Closing
Date, any and all right, title and interest of Seller or Parent, as the case may be, in and to any and all of the tangible and intangible assets of the Business (other than the Excluded Assets (as defined below)), including, without limitation,
(a) the Intellectual Property, Content, Assumed Contracts and the Web site and (b) any images, customer lists, subscriber lists, prospect lists, e-mail lists, accounts receivable, traffic statistics and reports related primarily to the
Business as of the Closing, including, without limitation, such items set forth on Schedule 2.01 (“Purchased Assets”), wherever such Purchased Assets may be located. 
  
 2.02 Excluded Assets. Buyer expressly understands and agrees
that all assets, properties and rights of Seller or Parent not related primarily to the Business, including, but not limited to, those assets, properties and rights of Seller or Parent set forth on Schedule 2.02 (the “Excluded
Assets”) shall be excluded from the Purchased Assets, including, without limitation, the following (to the extent not related primarily to the Business): 
  
 (i) all cash and cash equivalents (including all bank accounts), marketable securities and prepaid expenses; 
  
 (ii) all intercompany receivables, if any; 
  
 (iii) all corporate records (including minute books and stock ledgers), tax
returns and financial records except to the extent related to the Business or Purchased Assets; 
  
 (iv) any Permits which may not be transferred without the consent, novation, waiver or approval of a third person or entity and for which such consent,
novation, waiver or approval has not been obtained; 
  
 (v) all
insurance policies; 
  

 6 

 (vi) any refunds, credits, prepayments or overpayments with respect to Taxes paid or accrued by Seller or
Parent; and 
  
 (vii) all assets of any Employee Plans and Benefit
Arrangements. 
  
 2.03 Assumption of Liabilities. On
the Closing Date, Buyer shall assume and agree to perform all the obligations of Seller or Parent, as the case may be, pursuant to the Assumed Contracts (other than liabilities or obligations attributable to any failure by Seller or Parent to comply
with the terms thereof) or arising from the operation of the Business after the Closing (except for any Excluded Liabilities), including, without limitation, the deferred subscription liability set forth on Schedule 2.03, but only to the
extent such obligations pursuant to the Assumed Contracts relate to periods after the Closing Date (the “Assumed Liabilities”). 
  
 2.04 Excluded Liabilities. Buyer shall not assume any liabilities, other than the Assumed Liabilities including, without limitation, the
following: 
  
 (i) any obligation or liability for Tax of Parent
or Seller or any member of any consolidated, affiliated, combined or unitary group of which Seller is or has been a member, including any Taxes arising from the operation of the Business or ownership of Purchased Assets on or prior to the Closing
Date; provided, however that Apportioned Obligations shall be paid in the manner set forth in Section 5.06; 
  
 (ii) any liabilities or obligations under any Employee Plans or Benefit Arrangements including, without limitation, bonus and accrued vacation for the
Transferred Employees; 
  
 (iii) any liabilities arising prior to
the Closing Date under Assumed Contracts included in the Purchased Assets except the deferred subscription liability set forth on Schedule 2.03, which shall be an Assumed Liability; 
  
 (iv) any liabilities or obligations for continued health care coverage for
any employees or other qualified beneficiaries under Code Section 4980B (“COBRA”) who have a qualifying COBRA event on or prior to the Closing Date; 
  
 (v) any liability or obligation relating to any action, suit, arbitration, investigation or proceeding pending against the
Business or with respect to the Purchased Assets on or prior to the Closing Date; and 
  
 (vi) any liability or obligation relating to an Excluded Asset. 
  
 (collectively, the “Excluded Assets”) 
  
 2.05 Assignment of Assumed Contracts and Rights. Anything in this Agreement to the contrary notwithstanding, this Agreement shall not
constitute an agreement to assign any Purchased Asset or any claim or right or any benefit arising thereunder or resulting therefrom if an attempted assignment thereof, without consent of a third party thereto, would constitute a breach or other
contravention thereof or in any way adversely affect the rights of Buyer, Parent or Seller thereunder. Parent and Seller will use their commercially reasonable 
  

 7 

 efforts (but without any payment of money by Parent, Seller or Buyer) to obtain the consent of the other parties to the
assignment of any such Purchased Asset or claim or right or any benefit arising thereunder for the assignment thereof to Buyer as Buyer may request. If such consent is not obtained, or if an attempted assignment thereof would be ineffective or would
materially and adversely affect the rights of Buyer thereunder so that Buyer would not in fact receive all such rights, Parent, Seller and Buyer will cooperate in a mutually agreeable arrangement under which Buyer would obtain the benefits and
assume the obligations thereunder in accordance with this Agreement, including, without limitation, subcontracting, sub-licensing, or subleasing to Buyer, or under which Parent or Seller would enforce for the benefit of Buyer, with Buyer assuming
either Parent’s or Seller’s obligations, any and all rights of Parent or Seller against a third party thereto. Parent or Seller, as the case may be, will promptly pay to Buyer when received all monies received by Parent or Seller under any
Purchased Asset or any claim or right or any benefit arising thereunder, except to the extent the same represents an Excluded Asset. Notwithstanding the foregoing, to the extent that such rights and benefits have not been provided to Buyer by
alternate arrangements satisfactory to Buyer, in its sole discretion, Buyer, Parent and Seller shall negotiate in good faith for a downward adjustment to the Purchase Price paid by Buyer for the Purchased Assets. 
  
 2.06 Purchase Price; Allocation of Purchase Price. 

 
 (a) The purchase price for the Purchased Assets (the “Purchase
Price”) shall be nine million three hundred and fifty thousand dollars ($9,350,000) (“Cash Purchase Price”) and the assumption of the Assumed Liabilities. The Cash Purchase Price shall be paid as follows: (i) eight
million four hundred and fifteen thousand dollars ($8,415,000) upon Closing; and (ii) nine hundred and thirty-five thousand ($935,000) (“Escrow Amount”) shall be paid to the Escrow Agent on Closing and held in escrow in
accordance with the Escrow Agreement. 
  
 (b) As soon as
practicable after the Closing, Buyer shall deliver to Seller a statement (the “Allocation Statement”), allocating the Purchase Price (less those Assumed Liabilities not required to be taken into account under Section 1060 of
the Code) among the Purchased Assets in accordance with Section 1060 of the Code. If within ten days after the delivery of the Allocation Statement Seller notifies Buyer in writing that Seller objects to the allocation set forth in the
Allocation Statement, Buyer and Seller shall use commercially reasonable efforts to resolve such dispute within twenty days. In the event that Buyer and Seller are unable to resolve such dispute within twenty days, Buyer and Seller shall jointly
retain a nationally recognized accounting firm (the “Accounting Referee”) to resolve the disputed items. Upon resolution of the disputed items, the allocation reflected on the Allocation Statement shall be adjusted to reflect such
resolution. The costs, fees and expenses of the Accounting Referee shall be borne equally by Buyer and Seller. 
  
 (c) Seller and Buyer agree to (i) be bound by the Allocation Statement and (ii) act in accordance with the Allocation Statement in the
preparation, filing and audit of any Tax return (including filing Form 8594 with its federal income Tax return for the taxable year that includes the date of the Closing). 
  

 8 

 2.07 Closing. The closing (the “Closing”) of the purchase and sale of the
Purchased Assets and the assumption of the Assumed Liabilities hereunder shall take place at the offices of Buyer, 23 Old Kings Highway South, Darien, CT 06820 on the date hereof (the “Closing Date”). 
  
 ARTICLE III 
  
 REPRESENTATIONS AND WARRANTIES OF PARENT AND SELLER 
  
 Parent and Seller hereby jointly, and severally, represent and warrant to
Buyer, subject to the exceptions specifically disclosed in writing in the corresponding sections or subsections of Seller’s disclosure schedules or in any other section or subsection of Seller’s disclosure schedules if it is reasonably
apparent that such disclosure applies, that as of the date hereof: 
  
 3.01 Organization and Qualification. Each of Parent and Seller has been duly organized and is validly existing and in good standing under the laws of its respective jurisdiction of incorporation and has the requisite corporate
power and authority to own, lease and operate its properties and to carry on its business as it is now being conducted. 
  
 3.02 Corporate Authorization. The execution, delivery and performance by Parent or Seller of this Agreement and each of the Ancillary
Agreements to which it is a party, and the consummation by Parent and Seller of the transactions contemplated hereby and thereby are within Parent’s or Seller’s respective corporate powers and have been duly authorized by all necessary
corporate action on the part of Seller or Parent, as the case may be. This Agreement and each of the Ancillary Agreements to which either Parent or Seller is a party have been duly executed and delivered by Parent or Seller, as the case may be, and
constitute valid and binding agreements of Seller and Parent, as the case may be, enforceable against Seller or Parent, as the case may be, in accordance with their respective terms. 
  
 3.03 Non-Contravention. The execution, delivery and performance by Parent or Seller of this Agreement and each
of the Ancillary Agreements to which Seller or Parent is a party do not and will not: (i) contravene or conflict with the corporate charter or bylaws of Parent or Seller; (ii) contravene or conflict with or constitute a violation of any
provision of any law or regulation, judgment, injunction, order or decree binding upon or applicable to Parent, Seller, the Business or the Purchased Assets; or (iii) result in the creation or imposition of any Lien on any Purchased Asset,
other than Permitted Liens. 
  
 3.04 Required Consents.
Schedule 3.04 sets forth each Assumed Contract or Permit requiring a consent, waiver, authorization or approval as a result of the execution, delivery and performance of this Agreement or the Ancillary Agreements or the consummation of
the transactions contemplated hereby and thereby (each such consent, a “Required Consent”). 
  
 3.05 Absence of Certain Changes. Since July 31, 2005, Seller and Parent have conducted the Business in the ordinary course consistent
with past practices, and, except as set forth on Schedule 3.05 hereto: 
  
 (a) neither Parent nor Seller has entered into any material transaction or incurred any material liability or obligation with respect to the Business or the Purchased Assets other than in the ordinary course of
business consistent with past practice; and 
  

 9 

 (b) there has not been any material adverse change in the Purchased Assets or the condition (financial or
otherwise) of the Business. 
  
 3.06 Personal Property.

  
 (a) As of the date hereof, the Purchased Assets include,
but are not limited to, all of the personal property used primarily in the Business, including, without limitation, any machinery, equipment, furniture, inventory, servers, computers, software, spare and replacement parts, trade fixtures and fixed
assets. 
  
 (b) As of the date hereof, the equipment included in
the Purchased Assets has no material defects, is in good operating condition and repair, has been reasonably maintained consistent with standards generally followed in the industry (giving due account to the age and length of use of same, ordinary
wear and tear excepted) and is suitable for its present uses in connection with the Business. 
  
 (c) No Purchased Asset is subject to any Lien, except for the following (collectively, the “Permitted Liens”): 
  

(i) liens for Taxes not yet due and payable or being contested in good faith; 
  
 (ii) liens for inchoate mechanics’ and
materialmen’s liens for construction in progress and workmen’s, repairmen’s, warehousemen’s and carriers’ liens arising in the ordinary course of the Business; or 
  
 (iii) liens and imperfections of title the existence of
which would not materially adversely affect the use of the property subject thereto. 
  
 3.07 Sufficiency of Purchased Assets; Operation of Business. The Purchased Assets, together with the rights provided under the Ancillary Agreements, constitute, and on the Closing Date will constitute,
all of the assets, properties and rights necessary, and are sufficient, to conduct the Business in all material respects as currently conducted by Seller or Parent. 
  
 3.08 Title to Purchased Assets. Upon consummation of the transactions contemplated hereby, Buyer will have
acquired good and marketable title in and to, or a valid leasehold interest in (to the extent not owned by Parent or Seller prior to the Closing Date), each of the Purchased Assets, free and clear of all Liens, except for Permitted Liens.

  
 3.09 Litigation. There is no action, suit,
arbitration, investigation or proceeding pending against or, to Seller’s or Parent’s Knowledge, threatened against or affecting the Business or any Purchased Asset before any court or arbitrator or any governmental body, agency or
official. 
  

 10 

 3.10 Contracts. 
  
 (a) Except for the Contracts disclosed in Schedule 3.10, neither Parent nor Seller is a party to or subject to any of
the following Contracts: 
  
 (i) any real
property lease; 
  
 (ii) any contract for the
purchase of materials, supplies, goods, services, equipment or other assets providing for annual payments by Parent or Seller or pursuant to which in the last year Parent or Seller paid in the aggregate $15,000 or more; 
  
 (iii) any sales, distribution or other similar agreement
providing for the sale by Parent or Seller of materials, supplies, goods, services, equipment or other assets that provides for annual payments to Parent or Seller of, or pursuant to which in the last year either Parent or Seller or any Affiliate
thereof received in the aggregate, $15,000 or more; 
  
 (iv) any partnership, joint venture or other similar contract arrangement or agreement; 
  
 (v) any contract relating to indebtedness for borrowed money or the deferred purchase price of property (whether incurred, assumed,
guaranteed or secured by an asset) entered into other than in the ordinary course of business consistent with past practices; 
  
 (vi) any material license agreement, franchise agreement or agreement in respect of similar rights granted to or held by Parent or Seller;

  
 (vii) any agency, dealer, sales
representative or other similar agreement; 
  
 (viii) any agreement, contract or commitment that substantially limits the freedom of Parent or Seller to compete in any line of business including, without limitation, the Business, or with any Person or in any area or to own, operate,
sell, transfer, pledge or otherwise dispose of or encumber any Purchased Asset or that would so limit the freedom of Buyer after the Closing Date; 
  
 (ix) any image production, work for hire or similar image or content production agreement; or 
  
 (x) any other contract not made in the ordinary course of
business consistent with past practice which is material to the Business and relates primarily to the Purchased Assets. 
  
 (b) Each Contract required to be disclosed pursuant to Section 3.10 is a valid and binding agreement of Seller or Parent, as the case may be, and is
in full force and effect, and neither Seller nor Parent, nor to the Knowledge of Seller or Parent, is any other party thereto in default in any material respect under the terms of any such Contract, nor, to the Knowledge of Seller or Parent, has any
event or circumstance occurred that, with notice or lapse of time or both, would constitute any material event of default thereunder. 
  

 11 

 3.11 Licenses and Permits. Seller possesses all material permits, licenses and approvals
necessary or used primarily in order to carry on the Business or own the Purchased Assets (the “Permits”). Schedule 3.11 hereto sets forth all Permits. Except as set forth on Schedule 3.11 hereto, Seller is in
compliance in all material respects with all Permits; there are no proceedings pending or, to the Knowledge of Seller and Parent, threatened, to revoke, suspend, cancel or modify any Permit and all such Permits may be assigned to Buyer as
contemplated hereby without the consent of the issuing authority. 
  
 3.12 Compliance with Laws. Seller is not in violation in any respect of any material applicable law, regulation, ordinance, order or any other requirement of any governmental body or court (including, without limitation,
matters relating to securities, loans, employment and improper payments), and no notice has been received by Parent or Seller or any of their respective officers or directors alleging any such violation. 
  
 3.13 Receivables. All accounts, notes receivable and other
receivables included in the Purchased Assets are, and all accounts and notes receivable arising from or otherwise relating to the Business on or prior to the Closing Date arose in the ordinary course of business consistent with past practice.

  
 3.14 Proprietary Rights. 
  
 (a) As of the date hereof, the Purchased Assets include all Intellectual
Property used primarily in the Business (the “Seller Intellectual Property”), which includes Intellectual Property owned by Seller or Parent, and Intellectual Property licensed by Seller or Parent pursuant to a valid and enforceable
license or other agreement (the “Licensed Intellectual Property”). Seller or Parent, as the case may be, possesses all right, title and interest in the Seller Intellectual Property necessary to carry out Seller’s current
activities, including without limitation, to the extent required to carry out such activities, rights to make, use, reproduce, modify, adopt, create derivative works based on, translate, distribute (directly and indirectly), transmit, display
publicly and perform publicly, license, rent and lease and, except with respect to the Licensed Intellectual Property, assign and sell, the Seller Intellectual Property. 
  
 (b) Schedule 3.14(b) hereto contains a complete and correct list of all applications, patents or registrations
included within the Seller Intellectual Property, including the applicable jurisdiction, filing date, application, patent or registration number and current status of each (collectively, the “Listed Intellectual Property”). All of
the Listed Intellectual Property is valid and subsisting, remains in good standing, with all fees and filings paid as of the date hereof, and free and clear of Liens. 
  
 (c) To the Knowledge of Seller and Parent, except as set forth on Schedule 3.14(c) hereto, there is no violation
by others of any right of Seller with respect to any Seller Intellectual Property. No proceedings have been instituted or are pending or, to the Knowledge of Seller and Parent, threatened, alleging any such violation by others of any right of Seller
with respect to any Seller Intellectual Property. 
  

 12 

 (d) Each license or other agreement involving the Licensed Intellectual Property to which Seller or
Parent is a party (each, a “License Agreement”) is listed in Schedule 3.14(d), along with an identification of the parties, date, term and subject matter of each License Agreement. 
  
 (e) Schedule 3.14(e) contains a true and complete list of all software
programs owned or used by Seller, other than software programs which are readily commercially available or for which substitutes are available from more than one source (the “Software Programs”). Seller or Parent owns full and
unencumbered right and good and marketable title to such Software Programs that it owns, free and clear of all mortgages, pledges, liens, security interests, conditional sales agreements, encumbrances or charges of any kind. Seller or Parent, as the
case may be, has full and unrestricted rights to use and assign to Buyer the Software Programs that it licenses, pursuant to license agreements listed in Schedule 3.14(d). 
  
 (f) Except as set forth on Schedule 3.14(f), no present or former employee or officer of Seller or Parent, nor any
Affiliate or agent or outside contractor of Seller or Parent holds any right, title or interest, directly or indirectly, in whole or in part, in or to any Seller Intellectual Property. 
  
 (g) Except as set forth on Schedule 3.14(g), other than with respect to copyrightable works Seller hereby represents
that it owns as “works made for hire” within the meaning of Section 101 of the Copyright Act of 1976, Seller has obtained from all individuals who participated in any respect in the invention or authorship of any Seller Intellectual
Property, as consultants, as employees of consultants or otherwise, effective waivers of any and all ownership rights of such individuals in such Seller Intellectual Property, and written assignments to Seller of all rights with respect thereto. No
officer or employee of Seller is subject to any currently effective agreement with any third party that requires such officer or employee to assign any interest in inventions or other Intellectual Property or to keep confidential any trade secrets,
proprietary data, customer lists or other business information or that restricts such officer or employee from engaging in competitive activities or solicitation or customers. 
  
 (h) (i) to the Knowledge of Seller and Parent, no employee, independent contractor or agent of Seller or Parent has
appropriated any Seller Intellectual Property to the detriment of Seller or misappropriated any trade secrets or other confidential information of any third party in the course of the performance of his or her duties as an employee, independent
contractor or agent of Seller; and (ii) Seller has taken commercially reasonable steps to protect the Seller Intellectual Property. 
  
 (i) To the Knowledge of Seller and Parent, Seller’s transmission, reproduction, use, display or modification of the Purchased Assets or other
practices relating to the use of the Purchased Assets do not infringe or violate any Intellectual Property or other proprietary right of any third party and no claim relating to such infringement or violation is pending or, to the Knowledge of
Seller and Parent, threatened. 
  
 (j) Except as set forth in
Schedule 3.14(j), neither Seller nor Parent owes or will owe any royalties or other payment to third parties in respect of the Seller Intellectual Property. All royalties or other payments that have accrued prior to the Closing Date have been
paid. 
  

 13 

 (k) The trademarks transferred pursuant to the Trademark Assignment Agreement (“the
Trademarks”) constitute all rights in trademarks, including registrations or applications thereto used currently and primarily in the Business. 
  
 (l) The copyrights transferred pursuant to the Copyright Assignment Agreement (“the Copyrights”) constitute all rights in copyright,
including registrations or applications thereto, and all underlying goodwill, used currently and primarily in the Business. 
  
 3.15 Employees; Labor Matters. 
  
 (a) Schedule 3.15(a) sets forth a true and complete list of the names, titles, annual salaries and dates of hire of all employees of Parent or
Seller primarily engaged in the Business (collectively, such employees are referred to herein as the “Employees” or individually as an “Employee”). 
  
 (b) Schedule 3.15(b) sets forth a true and complete copy or description of each material Employee Plan and Benefit
Arrangement that covers any Employee and has previously been made available or furnished to Buyer. 
  
 (c) Except as set forth on Schedule 3.15(c), (i) neither Parent nor Seller is a party to any union or collective bargaining agreements
covering any of the Employees, (ii) to the Knowledge of Parent and Seller, there are no activities or proceedings of any labor union to organize any of the Employees, and (iii) neither Parent nor Seller has any employment agreements with
any of the Employees. Seller is in compliance with all applicable laws relating to employment and employment practices, wages, hours and terms and conditions of employment, in each case relating to the Employees, except to the extent that such
non-compliance would not reasonably be expected to have, either individually or in the aggregate, a Material Adverse Effect. 
  
 (d) Except as set forth on Schedule 3.15(d), the consummation of the transactions contemplated by this Agreement shall not entitle any Employee or
former employee of Parent or Seller who was primarily engaged in the Business, to severance benefits, bonuses or other payment from Buyer. 
  
 (e) None of Parent, Seller or any Affiliate thereof has incurred any material liability pursuant to Title IV of ERISA, any material obligation or
liability (contingent or otherwise) under Title IV of ERISA or Section 412 of the Code, and no facts exist which could reasonable form a basis for such material obligation or liability. No Employee Plan is
a ”multiemployer plan,” as defined in Section 3(37) of ERISA, nor has Parent, Seller or any Affiliate thereof at any time contributed to or been obligated to contribute to any ”multiemployer plan.”

  
 3.16 Finder’s Fees. Except for Updata
Capital, Inc. (whose fees shall be paid solely by Parent or Seller), there is no investment banker, broker, finder or other intermediary which has been retained by or is authorized to act on behalf of Seller or Parent who might be entitled to any
fee or commission from Seller or Parent or any of their Affiliates upon consummation of the transactions contemplated by this Agreement. 
  

 14 

 3.17 Financial Statements. The unaudited balance sheet of the Seller at July 31, 2004
and 2005 and the unaudited balance sheet of the Seller at October 31, 2005 (collectively, the “Balance Sheets”) and related statements of income, retained earnings and cash flow for the periods then ended (collectively, the
“Financial Statements”), (i) are included as Schedule 3.17; (ii) were prepared in accordance with United States generally accepted accounting principles (“GAAP”); (iii) present fairly, in all
material respects, the financial condition and the results of operations of the Business as of the dates and for the periods indicated thereon; (iv) are, in all material respects, complete, correct, and consistent with the books of account and
records of Seller and Parent (except that the Financial Statements do not contain footnotes and other presentation items that may be required by GAAP) and (v) are, in all material respects, consistent with any financial statements filed in
connection with or as exhibits to Parent’s filings made pursuant to the Securities Exchange Act of 1934, as amended, or any other public filings required by applicable law. 
  
 3.18 Ownership of Seller. The outstanding shares of capital stock of Seller and the holders thereof are as set
forth on Schedule 3.18. 
  
 3.19 Content. As
of the date hereof, except as listed on Schedule 3.19, all of the Content is wholly owned by Seller and consists of quantities as follows: 14,941 three-dimensional clipart, 32,823 animated graphics, 580 video backgrounds, 1,200 Microsoft
PowerPoint templates, and 11,118 e-mail and Web page backgrounds. 
  
 3.20 Page Views. The Web site had the number of page views for each full calendar month of 2005 completed as of the date hereof as listed on Schedule 3.20, as measured by OSTG, Inc.’s Ad System 2. 
  
 3.21 Subscribers. The Web site had the number of opt-in
subscribers to its weekly e-mail newsletter for each full calendar month of 2005 completed as of the date hereof as listed on Schedule 3.21, as measured by Seller’s internal tracking procedures. 
  
 3.22 Unique Visitors. The Web site received unique visitors for
each of the months of September, October and November 2005, respectively, as listed on Schedule 3.22, as measured by OSTG, Inc.’s Ad System 2. 
  
 3.23 Member Accounts. As of the date hereof, the Business has the number of member accounts and current paid-up members as each are listed
on Schedule 3.23. 
  
 3.24 Taxes. 

  
 (a) Seller has timely paid all Taxes which will have been
required to be paid on or prior to the date hereof, the non-payment of which would result in a Lien on any Purchased Asset, would otherwise materially adversely affect the Business or would result in Buyer becoming liable or responsible therefore.

  
 (b) Seller has established, in accordance with GAAP applied on
a basis consistent with that of preceding periods, adequate reserves for the payment of all Taxes which arise from or with respect to the Purchased Assets or the operation of the Business and are incurred in or attributable to the Pre-Closing Tax
Period, the non-payment of which would result in a Lien on any Purchased Asset, would otherwise adversely affect the Business or would result in Buyer becoming liable therefore. 
  

 15 

 3.25 Affiliate Agreements and Liabilities. Except as set forth on Schedule 3.25:

  
 (a) there are no written or oral agreements between
Parent or Seller, on the one hand, and the Business, on the other hand, including, without limitation, any such agreements relating to the provision of any services by Parent or Seller to the Business, or by the Business to Parent or Seller; and

  
 (b) after the Closing Date there will be no transactions,
agreements, arrangements or indebtedness between the Business and (x) Parent or Seller, (y) any director or officer of Parent or Seller or (z) any member of the immediate family of any individual described in clause (y) of this
sentence. 
  
 ARTICLE IV 
  
 REPRESENTATIONS AND WARRANTIES OF BUYER 
  
 Buyer hereby represents and warrants to each of Seller and Parent, subject to
the exceptions specifically disclosed in writing in the corresponding sections or subsections of Buyer’s disclosure schedules or in any other section or subsection of Buyer’s disclosure schedules if it is reasonably apparent that such
disclosure applies, that: 
  
 4.01 Organization and
Qualification. Buyer has been duly organized and is validly existing and in good standing (to the extent applicable) under the laws of the jurisdiction of its incorporation or organization, as the case may be, and has the requisite power and
authority and all necessary governmental approvals to own, lease and operate its properties and to carry on its business as it is now being conducted. 
  
 4.02 Corporate Authorization. The execution, delivery and performance by Buyer of this Agreement and each of the Ancillary Agreements, and
the consummation by Buyer of the transactions contemplated hereby and thereby are within Buyer’s powers and have been duly authorized by all necessary action on the part of Buyer. This Agreement and each of the Ancillary Agreements to which
Buyer is a party have been, or will be in the case of the Ancillary Agreements, duly executed and delivered by Buyer and constitute valid and binding agreements of Buyer, enforceable against Buyer in accordance with their respective terms.

  
 4.03 Non-Contravention. The execution, delivery
and performance by Buyer of this Agreement and each of the Ancillary Agreements to which Buyer is a party do not and will not (i) contravene or conflict with the organizational documents or bylaws of Buyer, (ii) contravene or conflict with
or constitute a violation of any provision of any material law or regulation, judgment, injunction, order or decree binding upon or applicable to Buyer; or (iii) constitute a material default under or give rise to any right of termination,
cancellation or acceleration of any material right or obligation of Buyer or to a loss of any material benefit relating to Buyer’s business to which Buyer is entitled under any provision of any material agreement, contract or other instrument
binding upon Buyer or by which any of Buyer’s assets is or may be bound. 
  

 16 

 4.04 Consent and Approvals. There is no requirement applicable to Buyer to make any filing,
declaration or registration with, or to obtain any permit, authorization, consent or approval of, any governmental authorities as a condition to the lawful consummation by Buyer of the transactions contemplated by this Agreement and the other
agreements and instruments to be executed and delivered by Buyer pursuant hereto, except for filings the failure of making would not have a Material Adverse Effect on the transactions contemplated hereby. 
  
 4.05 Finders’ Fees. There is no investment banker, broker,
finder or other intermediary which has been retained by or is authorized to act on behalf of Buyer who might be entitled to any fee or commission from Buyer or any of its Affiliates upon consummation of the transactions contemplated by this
Agreement. 
  
 ARTICLE V 
  
 COVENANTS OF THE PARTIES 
  
 The parties hereto agree that: 
  
 5.01 Commercially Reasonable Efforts; Further Assurances.

  
 (a) Subject to the terms and conditions of this Agreement
and except as otherwise set forth in this Agreement, each party will use its commercially reasonable efforts to take, or cause to be taken, all actions and to do, or cause to be done, all things necessary or desirable under applicable laws and
regulations to consummate the transactions contemplated by this Agreement or the Ancillary Agreements. Parent, Seller and Buyer each agree to execute and deliver such other documents, certificates, agreements and other writings and to take such
other actions as may be necessary or desirable in order to consummate or implement expeditiously the transactions contemplated by this Agreement or the Ancillary Agreements and to vest in Buyer title to the Purchased Assets as provided herein and
for Buyer to assume the Assumed Liabilities. 
  
 (b) Seller and
Parent hereby constitute and appoint, effective as of the Closing Date, Buyer and its successors and assigns as the true and lawful attorney of Parent and Seller with full power of substitution in the name of Buyer or in the name of Seller or
Parent, but for the benefit of Buyer, except as otherwise contemplated hereby, (i) to collect for the account of Buyer any items of Purchased Assets and (ii) to institute and prosecute all proceedings which Buyer may in its sole discretion
deem proper in order to assert or enforce any right, title or interest in, to or under the Purchased Assets, and to defend or compromise any and all actions, suits or proceedings in respect of the Purchased Assets. Buyer shall be entitled to retain
for its account any amounts collected pursuant to the foregoing powers, including any amounts payable as interest in respect thereof. 
  
 (c) Seller and Parent agree promptly to deliver to Buyer all mail, packages or other communications addressed to Seller or Parent, which are related to
the Business and unrelated to other businesses of Seller or Parent. Seller and Parent agree promptly to deliver to Buyer all payments or revenues related to the conduct of the Business after the Closing Date or any payments or revenues otherwise
included in the Purchased Assets and relating to the Business or the Purchased Assets, and received directly or indirectly by Seller or Parent other than those exclusively relating to Excluded Assets. 
  

 17 

 5.02 Certain Filings. Parent, Seller and Buyer shall cooperate with one another and shall
use all reasonable efforts and take all reasonable steps to obtain all consents, approvals, waivers or other documents from any third parties, including any governmental authorities, and make all filings, registrations and other notifications, as
may be required to consummate the transactions contemplated by this Agreement or the Ancillary Agreements and, in taking such actions or making any such filings, furnishing information required in connection therewith and seeking timely to obtain
any such actions, consents, approvals or waivers. 
  
 5.03
Confidentiality. The parties hereto shall comply with, and shall cause their respective Representatives to comply with, all of their respective obligations under the Confidentiality Agreement with respect to the information disclosed
pursuant to this Agreement. 
  
 5.04 Nonsolicitation by
Seller and Parent. Each of Seller and Parent agree that, for a period of twenty-four (24) months following the Closing Date, neither Seller nor Parent shall independently or together, directly or indirectly, solicit or induce the
employment or services of any Transferred Employee, including, without limitation, Jim Maloney or Art Holden; provided, however, that general solicitations or advertisements not specifically targeting Transferred Employees shall not be
considered a violation of this Section 5.04. 
  
 5.05
Noncompetition by Seller and Parent. 
  
 (a) Seller
and Parent agree that, unless such restrictions are otherwise terminated pursuant to the terms hereof, they will not, independently or together, directly or indirectly, anywhere in the world or in any language during and for a period of eighteen
(18) months (the “Noncompetition Period”) after the Closing Date, whether as principal, agent, stockholder, consultant, partner, employee, member, or in any other capacity whatsoever, participate in, engage in, or be in any
manner associated with the operation, management, development, publishing, marketing, distribution, creation, licensing or sale of any business, product or venture that (i) competes with the Business as it exists on the Closing Date,
(ii) publishes, sells or licenses clipart, Web art, video backgrounds, Microsoft PowerPoint presentations, e-mail and web page backgrounds, or (iii) calls on or solicits any of the customers, suppliers or distributors of the Business, or
makes known the names and addresses of such customers or any information relating exclusively to the Business or the Purchased Assets. Seller and Parent each agree that a violation of this Section 5.05 will cause irreparable injury to
Buyer, and Buyer shall be entitled, in addition to any other rights and remedies it may have at law or in equity, to an injunction enjoining and restraining Parent and Seller from doing or continuing to do any such violation and any other violations
or threatened violations of this Section 5.05. Notwithstanding the foregoing, (i) in the event that Parent is subject to a Change of Control prior to the expiration of the Noncompetition Period the provisions of this Section 5.05
shall terminate upon a Change of Control and (ii) nothing contained herein shall restrict Seller or Parent from making available three-dimensional clipart, animated graphics, video backgrounds, Microsoft PowerPoint templates, e-mail and Web
page backgrounds or free on-line graphics tools from third parties pursuant to posting, link or advertisement through one of Parent’s other business segments, with or without charge or subject to open source licenses. 
  

 18 

 (b) Each of Seller and Parent acknowledge and agree that the covenants set forth in this
Section 5.05 are reasonable and valid in scope and in all other respects. If any of such covenant is found to be invalid or unenforceable by a final determination of a court of competent jurisdiction (i) the remaining terms and provisions
hereof shall be unimpaired and (ii) the invalid or unenforceable term or provision shall be deemed replaced by a term or provision that is valid and enforceable and that comes closest to expressing the intention of the invalid or unenforceable
term or provision. In the event that, notwithstanding the first sentence of this paragraph (b), any of the provisions of this Section 5.05 relating to scope of the covenants contained therein or the nature of the business restricted thereby
shall be declared by a court of competent jurisdiction to exceed the maximum restrictiveness such court deems enforceable, such provision shall be deemed to be replaced herein by the maximum restriction reasonably expected to be enforceable by such
court. 
  
 5.06 Public Announcements. Buyer, on the
one hand, and Parent or Seller, on the other hand, may publish a press release concerning the transactions contemplated hereby provided that it first obtains the prior written consent of the other party, which shall not be unreasonably withheld or
delayed. Notwithstanding the foregoing, neither party shall be prevented from complying with the law or securities market regulations with respect to the foregoing. 
  
 5.07 Tax Matters. 
  
 (a) Buyer and Seller agree to furnish or cause to be furnished to each other, upon request, as promptly as practicable, such information and assistance
relating to the Business and the Purchased Assets (including access to books and records) as is reasonably necessary for the filing of all Tax returns, the making of any election relating to Taxes, the preparation for any audit by any taxing
authority, and the prosecution or defense of any claim, suit or proceeding relating to any Tax. Buyer and Seller shall retain all books and records with respect to Taxes pertaining to the Purchased Assets for a period of at least six years following
the Closing Date. On or after the end of such period, each party shall provide the other with at least 10 days prior written notice before destroying any such books and records, during which period the party receiving such notice can elect to take
possession, at its own expense, of such books and records. Seller and Buyer shall cooperate with each other in the conduct of any audit or other proceeding relating to Taxes involving the Purchased Assets or the Business. 
  
 (b) All real property taxes, personal property taxes and similar ad
valorem obligations levied with respect to the Purchased Assets for a taxable period which includes (but does not end on) the Closing Date (collectively, the “Apportioned Obligations”) shall be apportioned between Seller and
Buyer based on the number of days of such taxable period included in the Pre-Closing Tax Period and the number of days of such taxable period after the Closing Date (such portion of such taxable period, the “Post-Closing Tax
Period”). Seller shall be liable for the proportionate amount of such taxes that is attributable to the Pre-Closing Tax Period, and Buyer shall be liable for the proportionate amount of such taxes that is attributable to the Post-Closing
Tax Period. 
  
 (c) All excise, sales, use, value added,
registration stamp, recording, documentary, conveyancing, franchise, property, transfer, gains and similar Taxes, levies, 
  

 19 

 charges and fees (collectively, “Transfer Taxes”) incurred in connection with the transactions
contemplated by this Agreement shall be borne by Seller. Buyer and Seller shall cooperate in providing each other with any appropriate resale exemption certifications and other similar documentation. 
  
 (d) Apportioned Obligations shall be timely paid, and all applicable filings,
reports and returns shall be filed, as provided by applicable law. The paying party shall be entitled to reimbursement from the non-paying party in accordance with Section 5.07(b). Upon payment of any such Apportioned Obligation or Tax, the
paying party shall present a statement to the non-paying party setting forth the amount of reimbursement to which the paying party is entitled under Section 5.06(b) together with such supporting evidence as is reasonably necessary to calculate
the amount to be reimbursed. The non-paying party shall make such reimbursement promptly but in no event later than 10 days after the presentation of such statement. 
  
 5.08 Intellectual Property. 
  
 (a) Following the Closing, except for use pursuant to the Transition Services Agreement, neither Seller nor Parent shall
retain or use copies of any of the Content, three-dimensional clipart, animated graphics, video backgrounds, Microsoft PowerPoint templates, and e-mail, Web page backgrounds and, to the extent permitted under law, each of Seller and Parent shall use
commercially reasonable efforts to destroy any such materials or Content following the Closing. 
  
 (b) Following the Closing, neither Seller or Parent will use, seek to register, register or authorize others to use, trademarks or domain names
confusingly similar to the Trademarks anywhere in the world in breach of Section 5.05 and will not challenge Buyer’s right to use, seek to register or register the Trademarks anywhere in the world. 
  
 (c) Following the Closing, except for use pursuant to the Transition Services
Agreement, neither Seller or Parent will use, seek to register, register or authorize others to use, works substantially similar to the works covered by the Copyrights anywhere in the world in breach of Section 5.05 and will not challenge
Buyer’s right to use, seek to register or register the Copyrights anywhere in the world. 
  

 20 

 ARTICLE VI 
  

EMPLOYEE BENEFITS 
  
 6.01 Employees and Offers of Employment. 
  
 (a) Effective as of the Closing, Buyer shall have made offers of employment to the employees listed on Schedule 6.01(a) (each such person, upon
accepting an offer of employment from Buyer, a “Transferred Employee”). Each such offer shall have included (i) base salary or base wages which is substantially similar as in effect immediately prior to the Closing Date and
(ii) employee benefits (other than as set forth in clause (i)) which are substantially similar as those provided to similarly situated employees of Buyer. Nothing in this Agreement shall limit the right of Buyer to terminate the employment of
any Transferred Employee following the Closing Date. 
  
 (b) As of
the Closing Date, all Transferred Employees shall cease active participation in all Employee Plans and Benefit Arrangements, except as otherwise permitted under such Employee Plans and Benefit Arrangements. As of the first day following the Closing
Date, all Transferred Employees shall be permitted to participate in the plans, programs and arrangements of Buyer relating to compensation and employee benefits (each, a “Buyer Plan”) on the same terms as similarly situated
employees of Buyers. 
  
 (c) To the extent that any Buyer Plan
becomes applicable to any Transferred Employee after the Closing Date, Buyer shall grant, or cause to be granted, to such Transferred Employee credit for such Transferred Employee’s service with the Business (and any predecessor business of the
Business) for the purpose of determining eligibility to participate in and nonforfeitability of benefits under such Buyer Plan and for purposes of benefit accrual under any Buyer Plan which provides vacation or severance benefits. 
  
 (d) To the extent that any Buyer Plan that provides medical, dental, health
or other, similar benefits becomes applicable to any Transferred Employee after the Closing Date, Buyer shall waive, or cause to be waived, any waiting periods, pre-existing condition exclusions and actively-at-work requirements to the extent met
under the applicable Employee Plan or Benefit Arrangement as of the Closing and, as to the plan year in which the Closing Date occurs, shall provide that any expenses incurred under the applicable Employee Plan or Benefit Arrangement on or before
the date such Buyer Plan became applicable to such Transferred Employee or such Transferred Employee’s covered dependents shall be taken into account for purposes of satisfying applicable deductible, coinsurance and maximum out-of-pocket
provisions under the such Buyer Plan. 
  

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 ARTICLE VII 
  
 CLOSING DELIVERIES 
  
 7.01 Closing Deliveries. At the Closing: 
  
 (a) Buyer shall deliver to Seller the Cash Purchase Price, by wire transfer of immediately available funds to the account or accounts designated by Seller
to Buyer on or prior to the Closing Date; provided, however, that Buyer shall deliver the Escrow Amount to the Escrow Agent as directed pursuant to the Escrow Agreement; 
  
 (b) Parent, Seller and Buyer shall enter into the Intellectual Property Agreements, the Assignment and Assumption Agreement
and Bill of Sale, the Transition Services Agreement, and the Escrow Agreement (collectively, the “Ancillary Agreements”), and Parent and Seller shall deliver to Buyer the Required Consents and such bills of sale, assignments and
other good and sufficient instruments of conveyance and assignment as are expressly required to be delivered hereunder; and 
  
 (c) Seller and Parent shall execute and deliver certificates of their respective secretaries (or person holding similar authority) certifying and
attaching a copy of their respective organizational documents, certifying the incumbency and signatures of their respective officers or other representatives executing this Agreement and the Ancillary Agreements on their behalf and certifying and
attaching all requisite resolutions or actions of their respective directors, managers, shareholders and members, as applicable and necessary, approving the execution and delivery of this Agreement, the Ancillary Agreements and the consummation of
the transactions contemplated hereby and thereby. 
  
 ARTICLE
VIII 
  
 SURVIVAL; INDEMNIFICATION 
  
 8.01 Survival. The covenants, agreements, representations and
warranties of the parties hereto contained in this Agreement or in any certificate or other writing delivered pursuant hereto or in connection herewith shall survive the Closing (i) until eighteen (18) months after the Closing Date;
(ii) in the case of Sections 5.04 (Nonsolicitation) and 5.05 (Noncompetition) for the periods set forth therein; (iii) in the case of Sections 3.01 (Organization and Qualification), 3.02 (Corporate Authorization), 3.24 (Taxes) and 4.02
(Corporate Authorization) until the expiration of the applicable statute of limitations, respectively; (iv) in the case of Section 3.08 (Title to Purchased Assets) until the ten years after the Closing Date; and (vi) in the case of
the covenants, agreements, representations and warranties contained in Article VI, until expiration of the applicable statutory period of limitations (giving effect to any waiver, mitigation or extension thereof), if later. Notwithstanding the
preceding sentence, any covenant, agreement, representation or warranty in respect of which indemnity may be sought under Sections 8.02 shall survive the time at which it would otherwise terminate pursuant to the preceding sentence, if written
notice of the inaccuracy or breach thereof giving rise to such right to indemnity shall have been given to the party against whom such indemnity may be sought prior to such time. 
  

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 8.02 Indemnification. 
  
 (a) Seller and Parent, jointly and severally, hereby agree to indemnify the Buyer and its officers, directors, employees,
agents and Affiliates (“Buyer Indemnified Parties”) against, and agrees to hold each of them harmless from, any and all damages, claims, debts, actions, assessments, judgments, losses, liabilities, fines, fees, penalties and expense
(including, without limitation, reasonable expenses of investigation and reasonable attorneys’ fees and expenses in connection with any action, suit or proceeding (collectively, “Losses”) incurred or suffered by any of them
arising out of: 
  
 (i) any misrepresentation or
breach of any representation and warranty made by Parent or Seller pursuant to this Agreement; 
  
 (ii) any breach of any covenant or agreement made or to be performed by Parent or Seller pursuant to this Agreement; 
  
 (iii) the failure of Parent or Seller to assume full
responsibility for any Excluded Liability and failure to pay and discharge when due any Excluded Liability, or any claim or cause of action by any party against such indemnities with respect to the Excluded Liability; and 
  
 (iv) the enforcement by any Buyer Indemnified Party against
Parent or Seller of its indemnification rights under this Section 8.02(a), if a court of competent jurisdiction determines, or Parent or Seller acknowledges after the commencement of any such enforcement, that such Buyer Indemnified Party is
entitled to the full amount of indemnification initially claimed by such Buyer Indemnified Party. 
  
 (b) Buyer hereby indemnifies Seller and its Affiliates, officers, directors, employees and agents (“Seller Indemnified Parties”) against,
and agrees to hold each of them harmless from, any and all Losses (including, without limitation, reasonable expenses of investigation and reasonable attorneys’ fees and expenses in connection with any action, suit or proceeding incurred or
suffered by such parties arising out of: 
  
 (i)
any misrepresentation or breach of any representation and warranty made by Buyer pursuant to this Agreement; 
  
 (ii) any breach of any covenant or agreement made or to be performed by Buyer pursuant to this Agreement; 
  
 (iii) the failure of Buyer to assume full responsibility for
any Assumed Liability and failure to pay and discharge when due any Assumed Liability, or any claim or cause of action by any party against such indemnities with respect to the Assumed Liability; and 
  

 23 

 (iv) the enforcement by any Seller Indemnified Party against Buyer of its indemnification
rights under this Section 8.02(b), if a court of competent jurisdiction determines, or Buyer acknowledges after the commencement of any such enforcement, that such Seller Indemnified Party is entitled to the full amount of indemnification
initially claimed by such Seller Indemnified Party. 
  
 (c) The
indemnification obligations of the parties set forth in this Article VIII shall constitute the sole and exclusive remedy of the parties for the recovery of money damages with respect to any and all matters arising out of this Agreement except:
(i) with respect to the indemnification obligations arising from Sections 8.02(a)(i) or 8.02(b)(i), in cases of a knowing and intentional breach of a representation or warranty or fraud; and (ii) with respect to the indemnification
obligations arising from Sections 8.02(a)(ii) or 8.02(b)(ii), in cases of a knowing and intentional breach of a covenant or agreement or fraud. 
  
 8.03 Procedures; Additional Indemnification Provisions; Limitations on Indemnification. 
  
 (a) All claims for indemnification by an Indemnified Person pursuant to this
Article VIII shall be made in accordance with the provisions of this Section 8.03. 
  
 (b) A party entitled to indemnification under this Article VIII (the “Indemnified Person”) shall give prompt written notification to the Person obligated to provide such indemnification (the
“Indemnifying Person”) of the commencement of any action, suit or proceeding relating to a third party claim for which indemnification pursuant to this Article VIII may be sought; provided, however, that no delay on the part
of the Indemnified Person in notifying the Indemnifying Person shall relieve the Indemnifying Person from any liability or obligation under this Article VIII except to the extent of any damage or liability caused solely by or arising out of such
delay. Within 20 days after delivery of such notification, the Indemnifying Person may, upon written notice thereof to the Indemnified Person, assume control of the defense of such action, suit or proceeding with counsel reasonably satisfactory to
the Indemnified Person, provided (i) the Indemnifying Person acknowledges in writing to the Indemnified Person that the Indemnifying Person shall indemnify the Indemnified Person with respect to all elements of such action, suit or proceeding
and any damages, fines, costs or other liabilities that may be assessed against the Indemnified Person in connection with such action, suit or proceeding, and (ii) the third party seeks monetary damages only. If the Indemnifying Person does not
so assume control of such defense, the Indemnified Person shall control such defense. The party not controlling such defense may participate therein at its own expense; provided, that if the Indemnifying Person assumes control of such defense and
the Indemnified Person is advised by counsel in writing that the Indemnifying Person and the Indemnified Person may have conflicting interests or different defenses available with respect to such action, suit or proceeding, the reasonable fees and
expenses of counsel to the Indemnified Person shall be considered “Losses” for purposes of this Agreement. The party controlling such defense shall keep the other party advised of the status of such action, suit or proceeding and the
defense thereof and shall consider in good faith recommendations made by the other party with respect thereto. An Indemnified Person shall not agree to any settlement of such action, suit or proceeding without the prior written consent of the
Indemnifying Person, which shall not be unreasonably withheld or delayed. The Indemnifying Person shall not agree to any settlement or 
  

 24 

 the entry of a judgment in any action, suit or proceeding without the prior written consent of the Indemnified Person,
which shall not be unreasonably withheld (it being understood that it is reasonable to withhold such consent if, among other things, the settlement or the entry of a judgment (A) lacks a complete release of the Indemnified Person for all
liability with respect thereto or (B) imposes any liability or obligation on the Indemnified Person). 
  
 (c) Neither Seller nor Parent shall have any obligation to indemnify any Buyer Indemnified Party from and against any Losses resulting from the breach of
any representations or warranties of Seller or Parent contained in this Agreement: (i) until the Buyer Indemnified Persons, in the aggregate, have suffered aggregate Losses resulting from breaches of representations or warranties of Seller or
Parent contained in this Agreement in excess of $75,000 (after which point Seller and Parent will be obligated to indemnify all Buyer Indemnified Persons from the first dollar of Losses) (the “Basket”); or (ii) notwithstanding
anything to the contrary contained in this Agreement, to the extent the aggregate amount that Seller and/or Parent have actually indemnified any Buyer Indemnified Persons for Losses resulting from breaches of any representations or warranties of
Seller or Parent contained in this Agreement exceeds one million four hundred and two thousand five hundred dollars ($1,402,500) less the amount of any Losses previously recovered by Buyer from Seller or Parent pursuant to the indemnity set forth in
this Article VIII with respect to any breach of Section 3.08 (Title to Purchased Assets) (the “Cap”). Notwithstanding anything to the contrary in this Agreement, Seller’s and Parent’s indemnification obligations in
respect of Losses resulting from any breach of any representations or warranties of Seller or Parent contained in this Agreement shall not be subject to the Basket or the Cap with respect to any breach of Section 3.08 (Title to Purchased
Assets); provided, however, that the maximum amount of Losses that Buyer may recover from Seller or Parent pursuant to this Article VIII with respect to any breach of Section 3.08 (Title to Purchased Assets) shall be equal to the
difference between (i) the Purchase Price less (ii) the amount of any Losses previously recovered by Buyer from Seller or Parent pursuant to the indemnity set forth in this Article VIII. 
  
 ARTICLE IX 
  
 MISCELLANEOUS 
  
 9.01 Notices. All notices, requests and other communications to
either party hereunder shall be in writing (including telecopy or similar writing) and shall be given, 
  
 if to Buyer, to: 
  
 23 Old Kings Highway South 
 Darien, CT 06820 
 Attn: President or General Counsel 
 Facsimile No.: 203-655-5079 
  
 with a copy to: 
  
 Willkie Farr & Gallagher LLP 
 Attn.: Jeffrey R. Poss 
  

 25 

 787 Seventh Avenue 
 New York, NY 10019 
 Telephone No.: (212) 728-8536 
 Facsimile No.: (212) 728-9536 
  
 if to Parent or Seller, to: 
  
 VA Software Corporation 
 47071 Bayside Parkway 
 Fremont, CA 94538 
 Attn: Chief Executive Officer 
 Facsimile No.: (510) 226-8833 
  
 with a copy to: 
  
 Wilson Sonsini Goodrich & Rosati, P.C. 
 Attn.: Bret M. DiMarco 
            Todd C. Carpenter 
 650
Page Mill Road 
 Palo Alto, CA 94304 
 Telephone No.: (650) 493-9300 
 Facsimile No.: (650) 493-6811 
  
 9.02 Amendments; No Waivers. 
  
 (a) Any
provisions of this Agreement may be amended or waived if, and only if, such amendment or waiver is in writing and signed, in the case of an amendment, by Buyer, Parent and Seller, or in the case of a waiver, by the party against whom the waiver is
to be effective. 
  
 (b) No failure or delay by either party in
exercising any right, power or privilege hereunder shall operate as a waiver thereof nor shall any single or partial exercise thereof preclude any other or further exercise thereof or the exercise of any other right, power or privilege. The rights
and remedies herein provided shall be cumulative and not exclusive of any rights or remedies provided by law. 
  
 9.03 Expenses. Except as otherwise provided herein, all costs and expenses incurred in connection with this Agreement shall be paid by the
party incurring such cost or expense. 
  
 9.04 Successors
and Assigns. Except as otherwise provided in this Agreement, no party hereto shall assign this Agreement or any rights or obligations hereunder without the prior written consent of the other party hereto and any such attempted assignment
without such prior written consent shall be void and of no force and effect. The provisions of this Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns. 
  

 26 

 9.05 Governing Law. This Agreement shall be construed in accordance with and governed by
the law of the State of Delaware, without regard to the conflicts of law rules of such state. 
  
 9.06 Counterparts; Effectiveness. This Agreement may be signed in any number of counterparts, each of which shall be an original, with the same effect as if the signatures thereto and hereto were upon
the same instrument. Any counterpart may be executed by facsimile signature, and such facsimile signature shall be deemed an original. This Agreement shall become effective when each party hereto shall have received a counterpart hereof signed by
the other party hereto. 
  
 9.07 Entire Agreement.
This Agreement, the Ancillary Agreements and the Confidentiality Agreement constitute the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior agreements, understandings and negotiations, both
written and oral, between the parties with respect to the subject matter of this Agreement. No representation, inducement, promise, understanding, condition or warranty not set forth herein has been made or relied upon by either party hereto or
thereunder. 
  
 9.08 Captions. The captions herein
are included for convenience of reference only and shall be ignored in the construction or interpretation hereof. 
  
 9.09 Incorporation of Exhibits and Schedules. The Exhibits and Schedules referred to in this Agreement are incorporated herein and made a
part hereof. 
  
 9.10 Construction. The language
used in this Agreement will be deemed to be the language chosen by the parties to express their mutual intent, and no rule of strict construction will be applied against any party. Any references to any federal, state, local or foreign statute or
law will also refer to all rules and regulations promulgated thereunder, unless the context requires otherwise. Unless the context otherwise requires: (a) a term has the meaning assigned to it by this Agreement; (b) including means
“including without limitation”; (c) “or” is disjunctive but not exclusive; (d) words in the singular include the plural, and in the plural include the singular; and (e) “$” means the currency of the
United States of America. 
  
 9.11 Severability. In
the event that any one or more of the provisions contained in this Agreement or in any other instrument referred to herein, shall, for any reason, be held to be invalid, illegal or unenforceable in any respect, then to the maximum extent permitted
by law, such invalidity, illegality or unenforceability shall not affect any other provision of this Agreement or any other such instrument. Furthermore, in lieu of any such invalid or unenforceable term or provision, the parties hereto intend that
there shall be added as a part of this Agreement a provision as similar in terms to such invalid or unenforceable provision as may be possible and be valid and enforceable. 
  
 9.12 No Third-Party Beneficiaries. None of this Agreement, the Ancillary Agreements or the Confidentiality
Agreement shall confer any rights or remedies upon any Person other than the parties hereto and thereto and their respective successors and permitted assigns. 
  

[Remainder of Page Intentionally Left Blank] 
  

 27 

 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed by their
respective authorized officers as of the day and year first above written. 
  

			
	JUPITERIMAGES CORPORATION
		
	By:	 	 /s/ Christopher S. Cardell

	Name:	 	Christopher S. Cardell
	Title:	 	President
	
	VA SOFTWARE CORPORATION
		
	By:	 	 /s/ Ali Jenab

	Name:	 	Ali Jenab
	Title:	 	President & CEO
	
	ANIMATION FACTORY, INC.
		
	By:	 	 /s/ Ali Jenab

	Name:	 	Ali Jenab
	Title:	 	President & Director

  
 [Signature
Page to Asset Purchase Agreement]

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