Document:

_

ARMSTRONG WORLD INDUSTRIES, INC.

2006 PHANTOM STOCK UNIT PLAN

Unit Agreement

Armstrong World Industries, Inc. (the "Corporation") and _________________________ (the "Participant") for good and valuable consideration, the receipt and adequacy of which are hereby acknowledged and intending to be legally bound hereby, agree as follows:  

1.Award of Units.  The Corporation hereby confirms the grant to the Participant on ___________, ____ (the "Date of Award") of 6,000 Units ("Units"), subject to the terms and conditions of the Armstrong World Industries, Inc. 2006 Phantom Stock Unit Plan (the "Plan") and this Unit Agreement (this "Agreement").

Each Unit is issued in accordance with and is subject to all of the terms, conditions and provisions of the Plan, which is incorporated by reference and made a part of this Agreement as though set forth in full herein.  The Participant acknowledges that he has received a copy of and is familiar with the terms of the Plan.  Capitalized terms used in this Agreement and not otherwise defined herein shall have the respective meanings provided in the Plan unless the context requires otherwise.

	Vesting and Forfeiture.  

(a)Subject to Section 4.4(c) of the Plan and Section 2.2(b) of this Agreement, pursuant to which Units may be forfeited, the Units awarded hereby shall vest, contingent upon the awardee's continued service as a director of the Corporation, with respect to one-third of the Units on each of the first three annual anniversaries of the Date of Award or, if earlier, the date of any Change in Control Event.

(b)Vested Units shall become payable on the earlier of:
(i)the six month anniversary of the Participant's separation from service from the Corporation for any reason other than a removal for cause, or

(ii)the date of any Change in Control Event, provided that the Participant is a director of the Corporation on such date and that such Change in Control Event also qualifies as a change in ownership or effective control of the Corporation or a change in ownership of a substantial portion of the Corporation's assets, within the meaning of Section 409A of the Code. 

(c)Upon the date of termination of the Participant's service with the Corporation for cause, as determined by the Board or the Committee, all Units for which the Payment Date has not occurred, whether vested or unvested, shall immediately be forfeited to the Corporation without consideration or further action being required of the Corporation.  Upon the effective date of a separation of the awardee's service as a director with the Corporation for any reason other than cause, as determined by the Board or the Committee, all unvested Units shall immediately be forfeited to the Corporation without consideration or further action being required of the Corporation.

3.Payment.  The Participant shall receive a cash payment with respect to each vested Unit held by the Participant for which the Payment Date has occurred in the amount and at the time set forth in the Plan.  Notwithstanding any provision of the Plan or this Agreement, once payment is made with respect to a Unit, no Participant nor any other person shall be entitled to any additional payment with respect to that Unit.  The Participant shall have no rights as a shareholder of the Corporation by virtue of such Units, but shall be entitled to receive dividend equivalents, as provided in the Plan.

4.Restrictions on Transfer.  The Units granted to the Participant hereby may not be transferred and each Unit shall be payable during the Participant's lifetime only to the Participant.

5.Interpretation of Plan and Agreement.  Any dispute or disagreement which shall arise under, or as a result of or pursuant to, this Agreement shall be determined by the Board or the Committee, and any such determination or any other determination by the Board or the Committee under or pursuant to this Agreement and any interpretation by the Board or the Committee of the terms of this Agreement or the Plan shall be final, binding and conclusive on all persons affected thereby.  This Agreement is the agreement referred to in Section 4.2 of the Plan.  If there is any conflict between the Plan and this Agreement, the provisions of the Plan shall control.

	Miscellaneous.  

(a)This Agreement shall not be deemed to limit or restrict the right of the Corporation or its shareholders to remove the Participant from service as a director at any time, for any reason, or affect any right which the Corporation or its shareholders may have to elect directors.

(b)The Plan and Agreement constitute a mere promise by the Corporation to make payments in the future.  The Corporation's obligations under the Plan shall be unfunded and unsecured promises to pay.  The Corporation shall not be obligated under any circumstance to fund its financial obligations under the Plan.  To the extent that the Participant acquires a right to receive payments under the Plan, such right shall be no greater than the right, and the Participant shall at all times have the status, of a general unsecured creditor of the Corporation.  

(c)Except as may be required by law, the Participant shall have no right to, directly or indirectly, alienate, assign, transfer, pledge, anticipate or encumber any amount that is or may be payable hereunder, including in respect of any liability of the Participant for alimony or other payments for the support of a spouse, former spouse, child or other dependent, prior to actually being received by the Participant, nor shall the Participant's rights to payments under the Plan be subject in any manner to anticipation, alienation, sale, transfer, assignment, pledge, encumbrance, attachment, or garnishment by creditors of the Participant or to the debts, contracts, liabilities, engagements, or torts of the Participant, or transfer by operation of law in the event of bankruptcy or insolvency of the Participant, or any legal process. 

IN WITNESS WHEREOF, the Corporation and the Participant have executed this Agreement on the Date of Award.

ARMSTRONG WORLD INDUSTRIES, INC.

 

By:

 

WITNESS:

ParticipantExhibit 10.1 Agreement and Plan of Merger

    Exhibit
      10.1

    
 

    Christopher
      Alliotts (CA Bar No. 161302)

    Marcus
      A.
      Tompkins (CA Bar No. 190922)

    SULMEYERKUPETZ

    A
      Professional Corporation

    1080
      Marsh Road, Suite 110

    Menlo
      Park, California 94025

    Telephone:
      650.326.2245

    Facsimile:
      650.326.5134

    

    Attorneys
      for Official Committee of Unsecured Creditors

    

    Van
      C.
      Durrer, II (CA Bar No. 226693)

    Kurt
      Ramlo (CA Bar No. 166856)

    Melissa
      T. Kahn (CA Bar No. 229185)

    SKADDEN,
      ARPS, SLATE, MEAGHER & FLOM LLP

    300
      South
      Grand Avenue, Suite 3400

    Los
      Angeles, California 90071

    Telephone:
      213.687.5000

    Facsimile:
      213.687.5600

    

    Attorneys
      for Debtors and Debtors in Possession

    

    UNITED
      STATES BANKRUPTCY COURT

     

    NORTHERN
      DISTRICT OF CALIFORNIA, SAN FRANCISCO DIVISION

     

    
      	
              In
                re

               

               

               

               

              FIRST
                VIRTUAL COMMUNICATIONS, INC., 

               

               

              Debtor.

               

            	 	
              Case
                No. 05-30145 TEC

              Case
                No. 05-30146 TEC

               

              Jointly
                Administered Chapter 11 Cases

               

              FIRST
                AMENDED JOINT CHAPTER 11 PLAN OF REORGANIZATION PROPOSED BY DEBTORS
                AND
                OFFICIAL COMMITTEE OF UNSECURED CREDITORS (Dated September 21,
                2005)

            
	
               

              In
                re

               

              CUseeMe
                NETWORKS, INC.

               

               

              Debtor.

               

               

            	 	
               

              Plan
                Confirmation Hearing

              DATE:  November
                14, 2005

              TIME:  9:30
                a.m.

              PLACE: U.S.
                Bankruptcy Court

              Courtroom
                23

              235
                Pine Street

              San
                Francisco, CA 94104

              JUDGE: Hon.
                Thomas E. Carlson

            

    

     

     

    
      

        
          	
                  TABLE
                    OF CONTENTS

                
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	
                  I.
                    INTRODUCTION

                
	
                  II.
                    DEFINITIONS AND INTERPRETATION

                
	 	
                  A.

                	
                  Definitions

                	 
	 	
                  B.

                	
                  Interpretation;
                    Rules of Construction; Computation of Time

                	 
	
                  III.
                    CLASSIFICATION AND TREATMENT OF CLAIMS AND INTERESTS

                
	 	
                  A.

                	
                  General
                    Overview

                	 
	 	
                  B.

                	
                  Unclassified
                    Claims

                	 
	 	 	
                  1.
                    Administrative
                    Expense Claims

                	
                   

                
	 	 	
                  2.
                    Priority
                    Tax Claims

                	
                   

                
	 	
                  C.

                	
                  Classified
                    Claims and Interests

                	 
	 	 	
                  1.
                    Class
                    1 -- Secured Tax Claims

                	
                   

                
	 	 	
                  2.
                    Class
                    2 -- Secured Non-Tax Claims

                	
                   

                
	 	 	
                  3.
                    Class
                    3 -- Priority Non-Tax Claims

                	
                   

                
	 	 	
                  4.
                    Class
                    4 -- General Unsecured Claims

                	
                   

                
	 	 	
                  5.
                    Class
                    5 - Penalty Claims

                	
                   

                
	 	 	
                  6.
                    Class
                    6 - Preferred Stock Interests

                	
                   

                
	 	 	
                  7.
                    Class
                    7 - Old Common Stock Interests

                	
                   

                
	
                  IV.
                    MEANS FOR IMPLEMENTATION AND EXECUTION OF THE PLAN

                
	 	
                  A.

                	
                  Substantive
                    Consolidation

                	 
	 	
                  B.

                	
                  Funding
                    for the Plan

                	 
	 	
                  C.

                	
                  The
                    Liquidating Trust

                	 
	 	 	
                  1.
                    Appointment
                    of Liquidating Trustee

                	
                   

                
	 	 	
                  2.
                    Establishment
                    of Liquidating Trust

                	
                   

                
	 	 	
                  3.
                    Transfer
                    of Assets to the Liquidating Trust

                	
                   

                
	 	 	
                  4.
                    Rights,
                    Powers and Duties of Liquidating Trust/Trustee

                	
                   

                
	 	 	
                  5.
                    Prosecution
                    of Causes of Action

                	
                   

                
	 	 	
                  6.
                    Post-Effective
                    Date Administrative Fees and Expenses

                	
                   

                
	 	 	
                  7.
                    Dissolution
                    of Liquidating Trust

                	
                   

                
	 	
                  D.

                	
                  Employee
                    Issues

                	
                   

                
	 	 	
                  1.
                    Employees

                	
                   

                
	 	 	
                  2.
                    Treatment
                    of Employee Benefit Programs

                	
                   

                
	 	
                  E.

                	
                  Dissolution
                    of CUseeMe

                	 
	
                  V.
                    THE COMMITTEE

                
	 	
                  A.

                	
                  Survival
                    of the Committee

                	 
	 	
                  B.

                	
                  Rights,
                    Powers and Duties of the Committee

                	 
	 	 	
                  1.
                    Powers
                    of Committee, Generally

                	
                   

                
	 	 	
                  2.
                    Powers
                    of the Committee Over the Liquidating Trustee

                	
                   

                
	 	
                  C.

                	
                  Replacement
                    and Removal of Committee Members

                	 
	 	
                  D.

                	
                  Liability
                    of the Committee and its Members

                	 
	 	 	
                  1.
                    Standard
                    of Care

                	
                   

                
	 	 	
                  2.
                    No
                    Implied Obligations

                	
                   

                
	 	 	
                  3.
                    Advice
                    of Professionals

                	
                   

                
	 	 	
                  4.
                    Exculpation
                    of the Committee

                	
                   

                
	 	 	
                  5.
                    Indemnification
                    of the Committee

                	
                   

                
	 	
                  E.

                	
                  Employment
                    and Compensation of Committee’s Counsel

                	 
	
                  VI.
                    DISPUTED CLAIMS

                
	 	
                  A.

                	
                  Objections
                    to Claims

                	 
	 	 	
                  1.
                    Authority
                    to Prosecute Claim Objections

                	
                   

                
	 	 	
                  2.
                    Claims
                    Objection Deadline

                	
                   

                
	 	 	
                  3.
                    No
                    Distributions Pending Allowance

                	
                   

                
	 	 	
                  4.
                    Authority
                    to Settle Disputed Claims

                	
                   

                
	 	
                  B.

                	
                  Setoffs

                	 
	 	
                  C.

                	
                  Estimation
                    of Claims

                	 
	 	
                  D.

                	
                  Amendments
                    to Claims

                	 
	
                  VII.
                    DISTRIBUTIONS

                
	 	
                  A.

                	
                  Disbursing
                    Agent

                	 
	 	
                  B.

                	
                  Claim
                    Distribution Record Date

                	 
	 	 	
                  1.
                    Disputed
                    Claims Reserve

                	
                   

                
	 	
                  C.

                	
                  Manner
                    of Payment Under the Plan

                	 
	 	
                  D.

                	
                  Delivery
                    of Distributions and Undeliverable Distributions

                	 
	 	
                  E.

                	
                  Interest
                    on Claims

                	 
	 	
                  F.

                	
                  Compliance
                    with Tax Requirements

                	 
	 	
                  G.

                	
                  Allocation
                    of Distributions

                	 
	 	
                  H.

                	
                  Fractional
                    Distributions

                	 
	 	
                  I.

                	
                  De
                    Minimis Distributions

                	 
	 	
                  J.

                	
                  No
                    Distributions On Account of Intercompany Claims

                	 
	 	
                  K.

                	
                  Investment
                    of Cash

                	 
	 	
                  L.

                	
                  Claims
                    Covered by Insurance

                	 
	 	 	
                  1.
                    Authorized
                    Insurance Payments

                	
                   

                
	 	 	
                  2.
                    Exhaustion
                    of Insurance

                	
                   

                
	 	 	
                  3.
                    Coverage
                    Denied

                	
                   

                
	 	 	
                  4.
                    Calculation
                    of Claim for Distributions

                	
                   

                
	
                  VIII.
                    TREATMENT OF EXECUTORY CONTRACTS AND UNEXPIRED LEASES

                
	 	
                  A.

                	
                  Approval
                    of Rejection of Executory Contracts and Unexpired Leases

                	 
	 	
                  B.

                	
                  Bar
                    Date for Filing Proofs of Claim Relating to Executory Contracts
                    and
                    Unexpired Leases Rejected Pursuant to the Plan

                	 
	
                  IX.
                    SETTLEMENT, EXCULPATION, INDEMNIFICATION AND RELEASES

                
	 	
                  A.

                	
                  Exculpation
                    of Plan Proponents and their Agents

                	 
	 	
                  B.

                	
                  Indemnification

                	 
	 	
                  C.

                	
                  Release
                    of Parties Entitled to Indemnification and Exculpation

                	 
	
                  X.
                    EFFECT OF CONFIRMATION OF PLAN

                
	 	
                  A.

                	
                  Binding
                    Effect of the Plan

                	 
	 	
                  B.

                	
                  Subordination
                    of Claims

                	 
	 	
                  C.

                	
                  Term
                    of Bankruptcy Injunction or Stays

                	 
	 	
                  D.

                	
                  Discharge

                	 
	
                  XI.
                    RETENTION OF JURISDICTION

                
	 	
                  A.

                	
                  Scope
                    of Jurisdiction

                	 
	 	
                  B.

                	
                  Abstention

                	 
	
                  XII.
                    MISCELLANEOUS ITEMS

                
	 	
                  A.

                	
                  Modification/Amendment
                    of Plan and Liquidating Trust

                	 
	 	
                  B.

                	
                  Withdrawal
                    or Revocation.

                	 
	 	
                  C.

                	
                  Result
                    of Stay Pending Appeal/Plan Voidability

                	 
	 	
                  D.

                	
                  Notices.

                	 
	 	
                  E.

                	
                  Representation
                    of the Debtors

                	 
	 	
                  F.

                	
                  Successors
                    and Assigns

                	 
	 	
                  G.

                	
                  Severability

                	 
	 	
                  H.

                	
                  Governing
                    Law

                	 
	 	
                  I.

                	
                  Headings

                	 
	 	
                  J.

                	
                  Saturday,
                    Sunday or Legal Holiday.

                	 
	 	
                  K.

                	
                  Incorporation
                    of Liquidating Trust Agreement and Exhibits.

                	 
	 	
                  L.

                	
                  Post-Confirmation
                    Status Report.

                	 
	 	
                  M.

                	
                  Post-Confirmation
                    Conversion/Dismissal

                	 
	 	
                  N.

                	
                  Supremacy
                    Clause

                	 
	 	
                  O.

                	
                  Final
                    Decree

                	 

        

         

         

      

    

    I.  

     

    INTRODUCTION

    First
      Virtual Communications, Inc., a Delaware corporation, and its wholly-owned
      subsidiary, CUseeMe Networks, Inc., a Delaware corporation, are the debtors
      and
      debtors in possession in the above-captioned jointly administered Chapter 11
      bankruptcy cases. On January 20, 2005, the Debtors commenced their bankruptcy
      cases by each filing a voluntary Chapter 11 petition under the United States
      Bankruptcy Code with the United States Bankruptcy Court for the Northern
      District of California, San Francisco Division. This document is the First
      Amended Joint Chapter 11 Plan proposed by the Debtors and the Official Committee
      of Unsecured Creditors appointed in the bankruptcy cases. Sent to you in the
      same envelope as this document is the First Amended Disclosure Statement which
      has been approved by the Court, and which is provided to help you understand
      the
      Plan.

    This
      Plan
      is a plan of reorganization. Pursuant to this Plan, it is anticipated that
      the
      Liquidating Trustee will (1) facilitate the Merger of FVC and U.S. Dry Cleaning,
      (2) make payments to Creditors and holders of Interests of the Debtors by
      distributing proceeds received from the sale of the Debtors’ assets and any
      other amounts recovered from the prosecution of the Causes of Action, and (3)
      distribute the 275,698 shares of New Common Stock to be issued to the
      Liquidating Trust on behalf of Creditors of the Estate pursuant to the Merger
      of
      FVC and U.S. Dry Cleaning. 

    In
      addition, the Plan contemplates the substantive consolidation of the Debtors’
Chapter 11 estates, such that all of the assets and liabilities of each estate
      will be treated as one and the same. The Plan Proponents will file a separate
      motion, to be heard at the same time as confirmation of the Plan, for such
      substantive consolidation, which is needed to eliminate any issue over the
      allocation of assets and liabilities between the separate Chapter 11 estates
      resulting from the incomplete acquisition of CUseeMe by FVC and to avoid the
      substantial fees and costs associated with making that determination.

    Finally,
      the Plan provides for the distribution of all of the Debtors’ assets in
      accordance with the priority scheme set forth in the Bankruptcy Code. There
      may
      be Persons who may wish to claim a lien or other interest in such property.
      Any
      Person who wishes to assert a lien or other interest in such property must
      file
      a written objection to confirmation of the Plan and serve such objection on
      counsel for the Debtors and the Committee by no later than October 31, 2005.
      Absent such an objection, the right to assert a lien or other interest in
      property of the Debtors’ Chapter 11 estates will be forever barred.

    If
      confirmed, the Effective Date of the Plan shall be November 25,
      2005.

     

    II.  

     

    DEFINITIONS
      AND INTERPRETATION

    A.  Definitions

    In
      addition to such other terms as are defined in other sections of this Plan,
      the
      terms below shall have the following meanings:

    1.  “Administrative
      Expense Claim”
      means a
      Claim under sections 503(b) and 507(a)(1) of the Bankruptcy Code, including
      but
      not limited to: (a) the actual and necessary costs and expenses of preserving
      the Estate, (b) the actual and necessary costs and expenses of operating the
      business of the Debtors, (c) compensation and reimbursement of expenses for
      legal and other services awarded under sections 328, 330(a) and 331 of the
      Bankruptcy Code, and (d) all fees and charges assessed against the Estate
      pursuant to Chapter 123 of Title 28, United States Code (28 U.S.C. §§ 1911 et
      seq.).

    2.  “Allowed”
      means,
      with respect to a Claim or Equity Interest (other than an Administrative Expense
      Claim):

    (a) A
      Claim
      or Equity Interest (i) either listed by the Debtors on their Schedules as other
      than disputed, unliquidated, or contingent; or asserted in a proof of claim
      which was timely and properly filed or late filed with leave of the Bankruptcy
      Court or by written agreement with the Debtors or the Liquidating Trustee (with
      the consent of the Committee); and (ii) not objected to on or before the
      expiration of the time within which to object to such Claim or Equity Interest
      as set forth in the Plan or such other applicable period of limitation fixed
      by
      the Bankruptcy Code, the Bankruptcy Rules, or the Bankruptcy Court, or as to
      which any objection has been withdrawn or determined by a Final Order to the
      extent such objection is determined in favor of the respective holder;
      or

    (b) A
      Claim
      or Equity Interest that has been allowed by Final Order or by stipulation
      between the holder of the Claim or Equity Interest and the Liquidating Trustee
      as to the amount and nature of the Claim or Equity Interest.

    With
      respect to an Administrative Expense Claim, “Allowed ” means any Administrative
      Expense Claim for which a request for payment was timely and properly filed
      and
      served in accordance with Article III.B.1.a of the Plan; to the extent such
      request is approved by Final Order of the Bankruptcy Court, except that a
      request for fees and charges assessed against the Estate pursuant to Chapter
      123
      of Title 28, United States Code (28 U.S.C. §§ 1911 et seq.), need not be
      approved by Final Order of the Bankruptcy Court if such fees are not objected
      to
      on or before the expiration of the time within which to object to such Claim
      as
      set forth in the Plan relating thereto. Administrative Expense Claims paid
      prior
      to the Effective Date shall be deemed Allowed.

    Unless
      otherwise specified in the Plan or by order of the Bankruptcy Court, an Allowed
      Claim shall not, for purposes of computation of distributions under the Plan,
      include interest on such Claim from and after the Petition Date.

    3.  “Allowed
      Investments”
      means
      only the following investments: demand and time deposits, such as short-term
      certificates of deposit in banks or other savings institutions rated AA or
      better by Moody’s or Standard & Poor’s or other high quality temporary
      liquid investments, such as United States Treasury Bills or Notes, or such
      other
      investments as may be authorized by the Bankruptcy Court.

    4.  “Bankruptcy
      Code”
      means
      title 11 of the United States Code (i.e. 11 U.S.C. §§ 101 et seq.), including
      all amendments thereto, to the extent such amendments apply to the Chapter
      11
      Cases.

    5.  “Bankruptcy
      Court”
      means
      the United States Bankruptcy Court for the Northern District of California,
      San
      Francisco Division, or such other court as may have jurisdiction over the
      Chapter 11 Cases.

    6.  “Bankruptcy
      Rules”
      means
      the Federal Rules of Bankruptcy Procedure promulgated pursuant to 28 U.S.C.
§
2075, including all amendments thereto, to the extent such amendments apply
      to
      the Chapter 11 Cases.

    7.  “Business
      Day”
      means
      any day except Saturday, Sunday or any “legal holiday” as defined by Bankruptcy
      Rule 9006(a).

    8.  “Cash”
      means
      legal tender of the United States of America.

    9.  “Causes
      of Action”
      means
      all claims, rights and causes of action that could have been brought by or
      on
      behalf of the Debtors, whether arising before, on or after the Petition Date,
      known or unknown, suspected or unsuspected, in law or in equity, including
      but
      not limited to (a) those referred to in the Disclosure Statement, (b) causes
      of
      action under sections 542, 544, 545, 546, 547, 548, 549, 550, 551, or 553 of
      the
      Bankruptcy Code, (c) derivative claims, and (d) rights to setoff or recoupment.
      However, pursuant to the Debtors’ asset purchase agreement with RADvision, Ltd.,
      which was approved by an order of the Bankruptcy Court, the Estate is barred
      from prosecuting any causes of action against third parties having an ongoing
      relationship with RADvision, Ltd.

    10.   “Chapter
      11 Cases”
      means
      the jointly administered cases under Chapter 11 of the Bankruptcy Code commenced
      by FVC and CUseeMe, respectively, bearing case numbers 05-30145-TEC and
      05-30146-TEC.

    11.  “Claim”
      means
      (a) any right to payment from any Debtor, whether or not such right is reduced
      to judgment, liquidated, unliquidated, fixed, contingent, matured, unmatured,
      disputed, undisputed, legal, equitable, secured or unsecured; or (b) any right
      to an equitable remedy for breach of performance if such breach gives rise
      to a
      right to payment from any Debtor, whether or not such right to an equitable
      remedy is reduced to judgment, fixed, contingent, matured, unmatured, disputed,
      undisputed, secured or unsecured; in either case, however, only to the extent
      such right arose prior to the Effective Date.

    12.   “Claim
      Distribution Record Date”
      means
      the record date for purposes of making distributions under the Plan, which
      date
      shall be the date of entry of the order approving the Disclosure
      Statement.

    13.   “Class”
      means a
      category of Claims or Equity Interests as designated in Article III of the
      Plan.

    14.   “Collateral”
      means
      any property or interest in property of the Estate subject to a lien to secure
      the payment or performance of a Claim, which lien is valid, perfected and
      enforceable under applicable law, and is not subject to avoidance under the
      Bankruptcy Code or otherwise invalid under the Bankruptcy Code or applicable
      state law.

    15.   “Committee”
      means
      the Official Committee of Unsecured Creditors appointed by the U.S. Trustee
      in
      the Chapter 11 Cases on January 25, 2005, as constituted as of the Effective
      Date, and as it may thereafter be reconstituted in accordance with the Plan.
      

    16.   “Committee’s
      Counsel”
      means
SulmeyerKupetz,
      a
      Professional Corporation, or its successors.

    17.   “Confirmation
      Date”
      means
      the date on which the Bankruptcy Court enters the Confirmation
      Order.

    18.   “Confirmation
      Order”
      means
      the order entered by the Bankruptcy Court confirming the Plan in accordance
      with
      section 1129 of the Bankruptcy Code.

    19.   “Creditor”
      means
      the holder of a Claim, whether or not such Claim is an Allowed
      Claim.

    20.   “CUseeMe”
      means
      CUseeMe Networks, Inc., a Delaware corporation, whether as a debtor or as a
      debtor in possession in the Chapter 11 Cases.

    21.   “Debtors”
      mean (a)
      First Virtual Communications, Inc., a Delaware corporation, and (2) CUseeMe
      Networks, Inc., a Delaware corporation; whether as debtors or as debtors in
      possession in the Chapter 11 Cases.

    22.   “Debtors’
      Counsel”
      means
      Skadden, Arps, Slate, Meagher & Flom LLP, or its successors.

    23.   “Disclosure
      Statement”
      means
      the first amended disclosure statement describing the Plan, including all
      exhibits thereto, as approved by the Bankruptcy Court pursuant to section 1125
      of the Bankruptcy Code.

    24.   “Disputed
      Claim”
      means
      with respect to a Claim proof of which has been filed with the Bankruptcy Court
      and (a) which is listed on the Schedules at zero or as disputed, unliquidated,
      or contingent, and which has not been resolved by written agreement between
      the
      claimant and the Liquidating Trustee, or by a Final Order; or (b) as to which
      any other party in interest has filed an objection in accordance with the
      Bankruptcy Code, the Bankruptcy Rules, and this Plan, which objection has not
      been settled, withdrawn, waived through payment, or overruled by a Final Order.
      Prior to (i) the time an objection is filed and (ii) expiration of the time
      within which an objection to such Claim must be filed pursuant to this Plan
      or a
      Final Order, a Claim shall be considered a Disputed Claim to the extent that
      the
      amount of such Claim specified in a Proof of Claim exceeds the amount of such
      Claim scheduled by the Debtor(s) as undisputed, noncontingent and
      liquidated.

    25.   “Disputed
      Claims Reserve”
      means
      the reserve established in accordance with Article VI of this Plan.

    26.   “Disputed
      Claims Reserve Account”
      means a
      deposit account, interest bearing if possible, opened by the Liquidating Trustee
      at an F.D.I.C. insured depository institution into which shall be deposited
      Cash
      representing Unclaimed Property and Cash sufficient to fund the Disputed Claims
      Reserve.

    27.   “Effective
      Date”
      means
      the date on which the Plan shall become effective, which is the first Business
      Day at least eleven (11) days after the Confirmation Date, on which no stay
      of
      the Confirmation Order is in effect.

    28.   “Employee
      Benefit Programs”
      means
      all health, dental, flexible medical payment, pension, welfare and retirement
      plans, and life and disability insurance policies, established by the Debtors
      for the benefit of their employees, whether or not such plans or programs were
      or had been terminated according to their terms before or after the Petition
      Date or during the Chapter 11 Cases.

    29.   “Equity
      Interest”
      means
      (a) a share in the Debtors, whether or not transferable or denominated “stock,”
or similar security; or (b) a warrant or right, other than a right to convert,
      to purchase, sell or subscribe to a share or security.

    30.   “Estate”
      means
      the estates of the Debtors created pursuant to section 541(a) of the Bankruptcy
      Code, as consolidated pursuant to Article IV.A of the Plan.

    31.   “Excess
      Cash”
      means
      the monies available for distribution on General Unsecured Claims, which equals
      the remaining Cash held by the Liquidating Trust after payment or reservation
      of
      all amounts to be distributed under the Plan to the holders of Administrative
      Expense Claims, Priority Claims, Secured Claims, and Post-Effective Date
      Administrative Fees and Expenses.

    32.   “Final
      Order”
      means an
      order, judgment or other decree of the Court or any Court of competent
      jurisdiction: (a) the operation or effect of which has not been stayed or
      reversed; (b) as to which no appeal, review, or rehearing is pending, and as
      to
      which the time for appeal, review or rehearing has expired; (c) as to which
      any
      right to appeal or move for review or rehearing has been waived in writing
      in
      form and substance satisfactory to the Liquidating Trustee; or (d) as to which
      any appeal, review or rehearing has been resolved, and the time to take any
      further appeal, review or rehearing has expired.

    33.   “FVC”
      means
      First Virtual Communications, Inc., a Delaware corporation, whether as a debtor
      or as a debtor in possession in the Chapter 11 Cases.

    34.   “General
      Unsecured Claim”
      means
      any Claim against the Debtors that is not a Secured Claim, an Administrative
      Expense Claim, a Priority Claim, a Penalty Claim, a Preferred Stock Interest,
      a
      Post-Effective Date Administrative Fee and Expense, an Old Common Stock
      Interest, or an Intercompany Claim.

    35.   “Intercompany
      Claim”
      means a
      Claim held by FVC against CUseeMe, or a Claim held by CUseeMe against
      FVC.

    36.   “Liquidating
      Trust”
      means
      the entity established pursuant to Article IV of the Plan for the purpose of
      holding and distributing the Trust Assets to the holders of Claims and Equity
      Interests in accordance with the Plan. 

    37.   “Liquidating
      Trust Agreement”
      means
      the agreement that will create the Liquidating Trust and govern its affairs
      and
      administration. The Liquidating Trust Agreement will be in substantially the
      form attached hereto as Exhibit A.

    38.   “Liquidating
      Trustee”
      means
      Gregory Sterling of Receivers Incorporated, who has been appointed Chief
      Restructuring Officer and designated the Estate’s Responsible Individual by
      order dated June 7, 2005 and who shall be appointed in accordance with the
      Liquidating Trust Agreement to administer the Liquidating Trust.

    39.   “Local
      Bankruptcy Rules”
      means
      the “Bankruptcy Local Rules” adopted by the Bankruptcy Court.

    40.  “Merger”
      means
      the merger of FVC with and into U.S. Dry Cleaning that is to close on or prior
      to the Effective Date and which will result in the Estate receiving 339,320
      shares of New Common Stock which is estimated to be 4.0% of the issued and
      outstanding common stock of U.S. Dry Cleaning as of July 15, 2005. 

    41.  “New
      Common Stock”
      means
      all shares of the common stock of the Reorganized Debtor issued on or after
      the
      Effective Date pursuant to this Plan. 

    42.  “Old
      Common Stock”
      means
      all shares of the common stock of FVC issued and outstanding immediately before
      the Effective Date, any Equity Interests in FVC’s common stock, and any other
      right or related Claim with respect to FVC’s common stock (including any Claim
      subordinated to the priority of FVC’s common stock in accordance with section
      510 of the Bankruptcy Code).

    43.  “Penalty
      Claim”
      means a
      Claim by a governmental unit for a penalty or other non-pecuniary
      loss.

    44.   “Person”
      has the
      meaning ascribed to such term in section 101(41) of the Bankruptcy
      Code.

    45.   “Petition
      Date”
      means
      January 20, 2005.

    46.   “Plan”
      means
      this First Amended Joint Chapter 11 Plan of Reorganization, either in its
      present form or as amended or modified, including all exhibits
      hereto.

    47.   “Plan
      Disbursement Account”
      means a
      deposit account opened by the Liquidating Trustee at an F.D.I.C. insured
      depository institution, interest-bearing if possible, into which shall be
      deposited Cash for Distributions in accordance with the Plan.

    48.   “Plan
      Proponents”
      means
      the Debtors and the Committee.

    49.   “Post-Effective
      Date Administrative Fees and Expenses”
      means
      fees and expenses incurred by the Liquidating Trust or the Estate on or after
      the Effective Date, including but not limited to compensation of Professionals,
      quarterly fees payable to the U.S. Trustee pursuant to 28 U.S.C. § 1930(a)(6),
      and tax obligations. 

    50.   “Preferred
      Stock Interest”
      means
      the preferred stock of FVC issued and outstanding immediately before the
      Effective Date, any Equity Interests in FVC’s preferred stock, and any other
      right or related Claim with respect to FVC’s preferred stock (including any
      Claim subordinated to the priority of FVC’s preferred stock in accordance with
      section 510 of the Bankruptcy Code).

    51.   “Priority
      Claim”
      means a
      Priority Non-Tax Claim or a Priority Tax Claim. For purposes of distribution
      and
      otherwise under the Plan, an Allowed Priority Tax Claim shall not include any
      amounts claimed for penalties or other non-pecuniary loss; such amounts shall
      be
      separately classified in a Class junior to all Claims for pecuniary
      losses.

    52.   “Priority
      Non-Tax Claim”
      means a
      Claim entitled to priority in payment as specified in section 507(a) of the
      Bankruptcy Code, other than an Administrative Expense Claim or a Priority Tax
      Claim.

    53.   “Priority
      Tax Claim”
      means
      any Claim against the Debtors or the Estate entitled to priority in payment
      as
      specified in section 507(a)(8) of the Bankruptcy Code. For purposes of
      distribution and otherwise under the Plan, an Allowed Priority Tax Claim shall
      not include any amounts claimed for penalties or other non-pecuniary loss;
      such
      amounts shall be separately classified in a Class junior to all Claims for
      pecuniary losses.

    54.   “Professional”
      means
      any Person or entity (a) retained in the Bankruptcy Case pursuant to an order
      of
      the Court in accordance with sections 327 or 1103 of the Bankruptcy Code, or
      (b)
      an attorney, accountant, appraiser, auctioneer, or other professional employed
      by the Liquidating Trustee or the Committee, if any, on or after the Effective
      Date.

    55.   “Pro
      Rata”
      means,
      except as otherwise expressly provided in the Plan, a number (expressed as
      a
      percentage) equal to the proportion that an Allowed Claim or Equity Interest
      in
      a particular Class bears to the aggregate amount of: (a) Allowed Claims or
      Equity Interests, plus (b) Disputed Claims or Equity Interest (in their
      aggregate face amount) in such Class as of the date of
      determination.

    56.   “Reorganized
      Debtor”
      means
      First Virtual Communications, Inc., a Delaware corporation, as of the Effective
      Date and thereafter, as reorganized pursuant to this Plan and the Confirmation
      Order, to be known as U.S. Dry Cleaning Corporation.

    57.   “Schedules”
      means
      the schedules of assets and liabilities and the statement of financial affairs
      filed by the Debtors as required by section 521 of the Bankruptcy Code and
      Bankruptcy Rule 1007, including any supplements or amendments thereto through
      the Confirmation Date.

    58.   “Secured
      Claim”
      means a
      Claim held by any Person against the Debtors or the Estate that is secured
      by
      Collateral, but only to the extent of the value, as set forth in the Plan,
      as
      agreed to by the holder of such Claim and the Estate, or as determined by a
      Final Order of the Bankruptcy Court pursuant to section 506(a) of the Bankruptcy
      Code, of such entity’s interest in the Estate’s interest in such property;
      provided, however, that a Secured Claim shall not include any portion of the
      Claim to the extent that the value of such entity’s interest in the Estate’s
      interest in such property is less than the amount of such Claim.

    59.   “Secured
      Non-Tax Claim”
      means a
      Secured Claim other than a Secured Tax Claim.

    60.   “Secured
      Tax Claim”
      means a
      Secured Claim of a governmental unit. For purposes of distribution and otherwise
      under the Plan, an Allowed Secured Tax Claim shall not include any amounts
      claimed for penalties or other non-pecuniary loss; such amounts shall be
      separately classified in a Class junior to all Claims for pecuniary
      losses.

    61.   “Trust
      Assets”
      means
      all property held by the Liquidating Trust, including, but not be limited to:
      (a) property of the Estate transferred to the Liquidating Trust in accordance
      with Article IV.C.3 of the Plan, (b) any amounts recovered by the Liquidating
      Trust from the prosecution of Causes of Action, (c) the 275,698 shares of New
      Common Stock to be issued to the Liquidating Trust on behalf of Creditors of
      the
      Estate pursuant to the Merger of FVC and U.S. Dry Cleaning, and (d) any other
      property of the Estate received or recovered by the Liquidating Trust.

    62.   “U.S.
      Dry Cleaning”
      means
      U.S. Dry Cleaning Corporation, a Delaware Corporation.

    63.   “U.S.
      Trustee”
      means
      the United States Trustee appointed to serve in the Northern District of
      California pursuant to 28 U.S.C. § 581.

    B.  Interpretation;
      Rules of Construction; Computation of Time

    1. Any
      term
      used in this Plan that is not defined herein, whether in this Article II or
      elsewhere, but that is used in the Bankruptcy Code or the Bankruptcy Rules,
      has
      the meaning subscribed to that term in (and shall be construed in accordance
      with the rules of construction under) the Bankruptcy Code or the Bankruptcy
      Rules.

    2. The
      words
      herein, hereof, hereto, hereunder and others of similar import refer to this
      Plan as a whole and not to any particular article, section, subsection or clause
      contained in this Plan.

    3. Unless
      specified otherwise in a particular reference, a reference in this Plan to
      an
      article or a section is a reference to that article or section of this
      Plan.

    4. Any
      reference in this Plan to a document being in a particular form means that
      the
      document shall be in substantially such form.

    5. Any
      reference in this Plan to an existing document means such document, and any
      amendments, modifications or supplements thereto.

    6. Whenever
      it is appropriate from the context, each term stated in either the singular
      or
      the plural shall include both the singular and the plural.

    7. In
      addition to the foregoing, the rules of construction set forth in section 102
      of
      the Bankruptcy Code shall apply to this Plan.

    8. In
      computing any period of time prescribed or allowed by the Plan, the provisions
      of Bankruptcy Rule 9006(a) shall apply.

    9. All
      Exhibits to this Plan are incorporated into this Plan, and shall be deemed
      included in this Plan, regardless of when filed with the Court.

     

    III.  

     

    CLASSIFICATION
      AND TREATMENT OF CLAIMS AND INTERESTS

    A.  General
      Overview

    As
      required by the Bankruptcy Code, the Plan classifies Claims and Equity Interests
      into various classes according to their right to priority of payments as
      provided in the Bankruptcy Code. The Plan states whether each class of Claims
      or
      Equity Interests is impaired or unimpaired. The Plan provides the treatment
      each
      Class will receive under the Plan.

    B.  Unclassified
      Claims

    Certain
      types of Claims are not placed into voting Classes; instead, they are
      unclassified. They are not considered impaired and they do not vote on the
      Plan
      because they are automatically entitled to specific treatment provided for
      them
      in the Bankruptcy Code. As such, the Plan Proponents have not placed the
      following Claims into a Class. The treatment of these Claims is provided below.
      

    1.  Administrative
      Expense Claims

    a. Bar
      Date for Requests

    Except
      for requests by Professionals for fees and reimbursement of expenses, all
      requests for payment of Administrative Expense Claims must be filed with the
      Bankruptcy Court and served on the Liquidating Trustee, the Committee’s Counsel,
      and the U.S. Trustee on or before ten (10) days after the Effective Date. Any
      Person who fails to file a request for payment of an Administrative Expense
      Claim in accordance with the Plan shall be forever barred from asserting such
      Administrative Expense Claim against the Debtors, the Estate or the Liquidating
      Trust, and shall receive no distribution under the Plan. Notwithstanding this
      deadline, anyone whose Administrative Expense Claims have been paid in full
      by
      the Debtors prior to the Effective Date need not comply with this subsection.
      

    Any
      objection to a request for payment of an Administrative Expense Claim must
      be
      filed within the time period, and served upon the parties specified in, the
      applicable Local Bankruptcy Rules and this Plan.

    b. Treatment

    Each
      holder of an unpaid and Allowed Administrative Expense Claim shall receive
      an
      amount in Cash equal to the Allowed amount of such Claim on or as soon as
      reasonably practicable after the later of (i) the Effective Date, or (ii) the
      date such Administrative Expense Claim becomes Allowed; provided, however,
      that
      an Allowed Administrative Expense Claim that is a post-Petition Date trade
      payable incurred by the Debtors in the ordinary course of business during the
      Chapter 11 Cases shall be paid in the ordinary course of business in accordance
      with the terms and conditions of any agreements relating thereto. Distributions
      to holders of Administrative Expense Claims under the Plan shall be made by
      the
      Liquidating Trustee.

    2.  Priority
      Tax Claims

      In
      accordance with section 1129(a)(9)(C) of the Bankruptcy Code, each holder of
      an
      unpaid and Allowed Priority Tax Claim shall receive an amount in Cash equal
      to
      the Allowed amount of such Claim on or as soon as reasonably practicable after
      the later of (i) the Effective Date, (ii) the date such Priority Tax Claim
      becomes Allowed; or (iii) if the payment on the Claim is not due as of the
      Effective Date, the date the payment is due in the ordinary course of the
      Debtors’ business. For purposes of distribution and otherwise under the Plan, an
      Allowed Priority Tax Claim shall not include any amounts claimed for penalties
      or other non-pecuniary loss; such amounts shall be separately classified in
      a
      Class junior to all other Classes for pecuniary losses. Distributions to holders
      of Priority Tax Claims under the Plan shall be made by the Liquidating
      Trustee.

    C.  Classified
      Claims and Interests

    1.  Class
      1 -- Secured Tax Claims

    a. Impairment
      and Voting

    Class
      1
      is impaired by the Plan, and holders of Class 1 Claims are entitled to vote
      on
      the Plan.

    b. Treatment

    Unless
      otherwise agreed, each holder of an unpaid and Allowed Class 1 Claim shall
      receive an amount in Cash equal to the Allowed amount of such Claim on or as
      soon as reasonably practicable after the later of: (i) the Effective Date,
      (ii)
      the date such Claim becomes Allowed; or (iii) if the payment on the Claim is
      not
      due until after the Effective Date, the date the payment is due in the ordinary
      course of the Debtors’ business. No deficiency claim will be Allowed, as set
      forth in section 502(b)(3) of the Bankruptcy Code. For purposes of distribution
      and otherwise under the Plan, an Allowed Secured Tax Claim shall not include
      any
      amounts claimed for penalties or other non-pecuniary loss; such amounts shall
      be
      separately classified in a Class junior to all other Classes for pecuniary
      losses. Distributions to holders of Class 1 Claims under the Plan shall be
      made
      by the Liquidating Trustee.

    2.  Class
      2 -- Secured Non-Tax Claims

    a. Impairment
      and Voting

    Class
      2
      is not impaired by the Plan, and holders of Class 2 Claims are not entitled
      to
      vote on the Plan. Holders of Class 2 Claims are conclusively presumed to have
      accepted the Plan.

    b. Treatment

    Each
      unpaid Allowed Class 2 Claim shall (i) be reinstated or rendered unimpaired
      in
      accordance with section 1124 of the Bankruptcy Code, or (ii) receive such other
      treatment as the Liquidating Trustee, the Committee and the holder of the Claim
      agree to in writing. The Liquidating Trustee shall satisfy any obligations
      resulting from such reinstatement or agreement. 

    3.  Class
      3 -- Priority Non-Tax Claims

    a. Impairment
      and Voting

    Class
      3
      is not impaired by the Plan, and holders of Class 3 Claims are not entitled
      to
      vote on the Plan. Holders of Class 3 Claims are conclusively presumed to have
      accepted the Plan.

    b. Treatment

    Unless
      otherwise agreed, each holder of an Allowed Class 3 Claim shall receive an
      amount in Cash equal to the Allowed amount of such Claim on or as soon as
      reasonably practicable after the later of (i) the Effective Date, (ii) the
      date
      such Claim becomes Allowed; or (iii) if the payment on the Claim is not due
      as
      of the Effective Date, the date the payment is due in the ordinary course of
      the
      Debtors’ business. Distributions to holders of Class 3 Claims under the Plan
      shall be made by the Liquidating Trustee.

    4.  Class
      4 -- General Unsecured Claims

    a. Impairment
      and Voting

    Class
      4
      is impaired by the Plan, and holders of Class 4 Claims are entitled to vote
      on
      the Plan. 

    b. Treatment

    Except
      to
      the extent that a holder of a General Unsecured Claim agrees to different
      treatment, each holder of an Allowed Class 4 Claim shall receive an amount
      equal
      to no more than the Allowed amount of such Claim of the following in order:
      (1)
      New Common Stock equal in number to the Pro Rata share of 275,698 shares of
      New
      Common Stock, and (2) Cash equal to the Pro Rata share of the remaining Cash
      held by the Liquidating Trust after payment or reservation of all amounts to
      be
      distributed under the Plan to the holders of Administrative Expense Claims,
      Priority Claims, Secured Claims, and Post-Effective Date Administrative Fees
      and
      Expenses. Distributions will be made to Creditors holding General Unsecured
      Claims as soon as practicable after all of the Trust Assets have been liquidated
      (other than the New Common Stock) and all Disputed Claims have been resolved
      in
      accordance with Article VI of the Plan. If appropriate, the Liquidating Trust
      may authorize interim distributions. Distributions to holders of General
      Unsecured Claims under the Plan shall be made by the Liquidating
      Trustee.

    5.  Class
      5 - Penalty Claims

    a. Impairment
      and Voting

    Class
      5
      is impaired by the Plan, and holders of Class 5 Penalty Claims are entitled
      to
      vote on the Plan. 

    b. Treatment

    The
      Plan
      Proponents expect that there will not be any funds available for distribution
      to
      holders of Class 5 Penalty Claims. However, if the aggregate value of the New
      Common Stock, as determined in accordance with Article IV.C of the Plan, and
      Excess Cash exceeds the amount of Class 4 Claims, and except to the extent
      that
      a holder of an Allowed Class 5 Penalty Claim agrees to a different treatment,
      each holder of an Allowed Class 5 Penalty Claim shall receive an amount in
      Cash
      equal to its Pro Rata share of any Excess Cash remaining after Class 4 Claims
      have been paid in full with pre-petition interest. Distributions will be made
      to
      holders of Class 5 Penalty Claims as soon as practicable once all of the
      Debtors’ assets have been liquidated and all Disputed Claims have been resolved
      in accordance with Article VI of this Plan. Distributions to holders of Class
      5
      Penalty Claims under the Plan shall be made by the Liquidating Trustee.

    6.  Class
      6 - Preferred Stock Interests

    a. Impairment
      and Voting

    Class
      6
      is impaired by the Plan, and holders of Class 6 Preferred Stock Interests are
      entitled to vote on the Plan. 

    b. Treatment

    The
      Plan
      Proponents expect that there will not be any funds available for distribution
      to
      holders of Class 6 Stock Interests. However, if the value of the New Common
      Stock, as determined in accordance with Article IV.C of the Plan, and Excess
      Cash exceeds the amount of Class 4 Claims and Class 5 Claims, and except to
      the
      extent that a holder of an Allowed Class 6 Preferred Stock Interest agrees
      to a
      different treatment, each holder of an Allowed Class 6 Preferred Stock Interest
      shall receive an amount in Cash equal to its Pro Rata share of any Excess Cash
      remaining after Class 5 Claims have been paid in full with pre-petition
      interest. Distributions will be made to holders of Class 6 Preferred Stock
      Interests as soon as practicable once all of the Debtors’ assets have been
      liquidated and all Disputed Claims have been resolved in accordance with Article
      VI of this Plan. Distributions to holders of Class 6 Preferred Stock Interests
      under the Plan shall be made by the Liquidating Trustee. All Class 6 Preferred
      Stock Interests shall be cancelled and extinguished on the Effective Date.
      

    7.  Class
      7 - Old Common Stock Interests

    a. Impairment
      and Voting

    Class
      7
      is impaired by the Plan. Because holders of Class 7 Old Common Stock Interests
      are not entitled to receive or retain any property under the Plan, holders
      of
      Class 7 Old Common Stock Interests are deemed not to have accepted the
      Plan.

    b. Treatment

    On
      the
      Effective Date, Class 7 Old Common Stock Interests shall be cancelled and
      extinguished and holders of Class 7 Old Common Stock Interests shall not be
      entitled to, and shall not receive, any property or interest in property on
      account of such Class 7 Old Common Stock Interests; provided, however, that
      after payment of all Class 6 Preferred Stock Interests in full, each holder
      of a
      Class 7 Old Common Stock Interest shall receive an amount equal to such holder’s
      Pro Rata share of any remaining Cash held by the Liquidating Trust.

     

    IV.  

     

    MEANS
      FOR IMPLEMENTATION AND EXECUTION OF THE PLAN

    A.  Substantive
      Consolidation

    On
      the
      Effective Date, all assets of FVC and CUseeMe shall be deemed merged and treated
      as though they were held by a single entity, and all liabilities of FVC and
      CUseeMe shall be treated as though they were owed by a single entity, for all
      purposes related to the Plan, including, but not limited to, voting,
      confirmation, and distribution. No distributions shall be made under the Plan
      on
      account of any Intercompany Claim. Any and all obligations of FVC arising from
      guarantees of CUseeMe’s liabilities, and any and all obligations of CUseeMe
      arising from guarantees of FVC’s liabilities, shall be deemed eliminated so that
      any Claim against one of the Debtors and
      any
      guarantee thereof executed by the other Debtor and any joint or several
      liability of any of the Debtors shall
      be
      deemed to be one obligation of the consolidated Debtors, and each and every
      Claim filed or to be filed in the Chapter 11 Cases shall be deemed filed against
      the consolidated Debtors. Such substantive consolidation shall not (other than
      for purposes related to the Plan) affect the legal and corporate structures
      of
      the Debtors. 

    B.  Funding
      for the Plan

    The
      Plan
      will be funded by the Trust Assets, which include (a) all property of the Estate
      transferred to the Liquidating Trust in accordance with this Article of the
      Plan, (b) any amounts recovered by the Liquidating Trust from the prosecution
      of
      Causes of Action, (c) the 275,698 shares of New Common Stock to be issued to
      the
      Liquidating Trust on behalf of Creditors of the Estate pursuant to the Merger
      of
      FVC and U.S. Dry Cleaning, and (d) any other property of the Estate received
      or
      recovered by the Liquidating Trust. 

    C.  Merger
      with U.S. Dry Cleaning

    On
      the
      Effective date, U.S. Dry Cleaning will merge with and into FVC. Upon successful
      completion of the Merger, the Liquidating Trust shall receive the 275,698 shares
      of New Common Stock for the benefit of the beneficiaries of the Liquidating
      Trust in accordance with the Plan, the Liquidating Trust Agreement, the
      Confirmation Order and applicable law. In accordance with the order approving
      the retention of Gregory Sterling as Chief Restructuring Officer, he will
      receive 0.75% of common stock in the Reorganized Debtor, or 63,622 shares of
      New
      Common Stock, upon successful completion of the Merger; the 63,622 shares of
      New
      Common Stock to be issued to Gregory Sterling are in addition to the 275,698
      shares of New Common Stock to be issued to the Liquidating Trust.

    For
      purposes of calculating distributions to be made under the Plan, the value
      of
      the 275,698 shares of New Common Stock shall be calculated based upon the
      average closing bid price for a share of stock for the five (5) trading days
      prior to the close of trading on the sixtieth (60th)
      day
      following the first day that such stock was traded publicly. The Liquidating
      Trustee shall not distribute any of the New Common Stock any earlier than the
      later of (a) the sixtieth (60th)
      day
      following the first day that such stock was traded publicly, and (b) the date
      of
      the initial distribution (other than New Common Stock) to holders of Class
      4
      General Unsecured Claims.

    D.  The
      Liquidating Trust

    1.  Appointment
      of Liquidating Trustee

    Gregory
      Sterling of Receivers Incorporated, who has been appointed Chief Restructuring
      Officer and designated the Estate’s Responsible Individual by order dated June
      7, 2005, shall be appointed Liquidating Trustee in the Confirmation Order.
      Such
      appointment is subject to the terms of the Liquidating Trust Agreement.

    2.  Establishment
      of Liquidating Trust

    On
      the
      Effective Date, the Debtors and the Liquidating Trustee shall execute the
      Liquidating Trust Agreement and shall take all other steps necessary to
      establish the Liquidating Trust. The Liquidating Trust shall be represented
      by,
      and shall act through, the Liquidating Trustee, and the affairs and
      administration of the Liquidating Trust shall be governed by the Plan, the
      Confirmation Order, the Liquidating Trust Agreement, and applicable bankruptcy
      and non-bankruptcy law. 

    3.  Transfer
      of Assets to the Liquidating Trust

    On
      the
      Effective Date, the Debtors shall transfer all of the Trust Assets to the
      Liquidating Trust, except for assets, including the Debtors’ computer system,
      needed to consummate the anticipated Merger of FVC and U.S. Dry Cleaning. The
      Debtors shall also execute and deliver all documents reasonably required by
      the
      Liquidating Trust, including the endorsement of any instruments, all business
      records of the Debtors, and authorizations to permit the Liquidating Trust
      to
      access all bank records, tax returns, and other files and records of the
      Debtors. All business records of the Debtors transferred to the Liquidating
      Trust shall constitute the business records of the Liquidating Trust pursuant
      to
      Federal Rule of Evidence 803(b) in any subsequent legal proceeding(s). The
      Liquidating Trust, after the Effective Date, shall control all of the Debtors’
applicable legal privileges, including control over the attorney-client
      privilege, for matters arising from or relating to transactions occurring,
      in
      whole or in part, prior to the Effective Date. Holders of Claims and Interests
      and other parties bound by the Plan shall look solely to the Liquidating Trust
      for distributions to be made pursuant to the Plan, and the Reorganized Debtor
      will have no liability for pre-confirmation liabilities or obligations of the
      Debtors.

    On
      the
      Effective date, U.S. Dry Cleaning will merge with and into FVC. Upon successful
      completion of the Merger, the Liquidating Trust shall receive the 275,698 shares
      of New Common Stock for the benefit of the beneficiaries of the Liquidating
      Trust in accordance with the Plan, the Liquidating Trust Agreement, the
      Confirmation Order and applicable law. In accordance with order approving the
      retention of Gregory Sterling as Chief Reorganization Officer, he will receive
      0.75% of common stock in the Reorganized Debtor or 63,622 shares of New Common
      Stock, upon successful completion of the Merger; the 63,622 shares of New Common
      Stock to be issued to Gregory Sterling are in addition to the 275,698 shares
      of
      New Common Stock to be issued to the Liquidating Trust.

    For
      purposes of calculating distributions to be made under the Plan, the value
      of
      the 275,698 shares of New Common Stock shall be calculated based upon the
      average closing bid price for a share of stock for the five (5) trading days
      prior to the close of trading on the sixtieth (60th)
      day
      following the first day that such stock was traded publicly. The Liquidating
      Trustee shall not distribute any of the New Common Stock any earlier than the
      later of (a) the sixtieth (60th)
      day
      following the first day that such stock was traded publicly, and (b) the date
      of
      the initial distribution (other than New Common Stock) to holders of Class
      4
      General Unsecured Claims.

    The
      transfer of assets to the Liquidating Trust shall be treated for federal income
      tax purposes and for all purposes of the Internal Revenue Code of 1986, as
      amended (the "Tax Code") (e.g., sections 61(a)(12), 483, 1001, 1012 and 1274),
      as a transfer to creditors to the extent creditors are beneficiaries of the
      Liquidating Trust. The transfer will be treated as a deemed transfer to the
      beneficiary-creditors followed by a deemed transfer by the beneficiary-creditors
      to the Liquidating Trust. The beneficiaries of the Liquidating Trust shall
      be
      treated as the grantors and deemed owners of the Liquidating Trust for federal
      income tax purposes. 

    4.  Rights,
      Powers and Duties of Liquidating Trust/Trustee

    The
      Liquidating Trustee shall have all rights, powers and duties specified in this
      Plan, the Liquidating Trust Agreement, the Confirmation Order and applicable
      law. The Liquidating Trustee’s duties shall include, but not be limited to,
      converting to Cash the Trust Assets, making timely distributions, and not unduly
      prolonging the duration of the Liquidating Trust. The Liquidating Trustee’s
      rights and powers shall include, but not be limited to, the rights and powers
      of
      a debtor in possession under section 1107 of the Bankruptcy Code, the power
      to
      administer the Trust Assets, the power to prosecute any Causes of Action for
      the
      benefit of the Liquidating Trust in the event the Committee fails to do so,
      and
      to otherwise perform the functions and take the actions provided for or
      permitted in the Liquidating Trust Agreement. On the Effective Date, the
      Liquidating Trustee and the Committee shall be designated and serve as
      representatives of the Estate in accordance with section 1123(b)(3)(B) of the
      Code. Committee’s Counsel shall have authority to prosecute Causes of Action on
      behalf of the Liquidating Trustee. 

    5.  Prosecution
      of Causes of Action

    The
      Committee and the Liquidating Trustee may, but are not required to, prosecute,
      settle, adjust, retain, enforce or abandon any Cause of Action as
      representatives of the Estate under Section 1123(b) of the Bankruptcy Code
      or
      otherwise in accordance with the Plan and the Liquidating Trust Agreement.
      Any
      and all proceeds generated from the prosecution of the Causes of Action shall
      constitute property of the Liquidating Trust to be distributed in accordance
      with the Plan. The Liquidating Trust shall not be subject to any counterclaims
      in respect of the Causes of Action; provided, however, that the Causes of Action
      will be subject to any setoff rights to the same extent as if the Debtors had
      pursued the Causes of Action themselves. 

    Notwithstanding
      any provision or interpretation to the contrary (except Article IX of this
      Plan), nothing in the Plan or the Confirmation Order, including the entry
      thereof, or the Liquidating Trust Agreement shall constitute or be deemed to
      constitute a release, waiver, relinquishment or bar, in whole or in part, of
      any
      Causes of Action possessed by the Estate or the Debtors prior to the Effective
      Date. In the event that the Bankruptcy Court, or any other court of competent
      jurisdiction, determines that the assignment of any Causes of Action to the
      Liquidating Trust pursuant to this Plan is invalid or does not grant to the
      Liquidating Trust the standing to pursue such Causes of Action, then in such
      case the Liquidating Trust shall be deemed appointed as the representative
      of
      the Estate for purposes of pursuing such Causes of Action, and the proceeds
      thereof shall be distributed in accordance with the terms of the
      Plan.

    6.  Post-Effective
      Date Administrative Fees and Expenses

    Except
      as
      otherwise ordered by the Bankruptcy Court, this Plan or the Liquidating Trust
      Agreement, the amount of any reasonable Post-Effective Date Administrative
      Fees
      and Expenses shall be paid by the Liquidating Trustee in Cash in accordance
      with
      the Liquidating Trust Agreement. The Liquidating Trustee shall also comply
      with
      all reporting requirements of the U.S. Trustee. The Liquidating Trustee shall
      have the authority to employ counsel by order of the Bankruptcy Court upon
      a
      duly-filed application in accordance with the Bankruptcy Code and Bankruptcy
      Rules.

    7.  Dissolution
      of Liquidating Trust

    Upon
      completion of its function as designated in this Plan and in the Liquidating
      Trust Agreement, the Liquidating Trust shall be dissolved.

    E.  Employee
      Issues

    1.  Employees

    As
      of the
      Effective Date, the then-current directors, officers and other employees of
      the
      Debtors shall be relieved of their positions and corresponding duties and
      obligations, and shall be deemed terminated “without cause,” including for
      purposes of any employment agreements or severance obligations, in addition
      to
      any rejection of employment agreements or severance obligations in accordance
      with Article VIII.

    2.  Treatment
      of Employee Benefit Programs

    Except
      as
      otherwise provided in this Plan, as soon as practicable following the Effective
      Date, to the extent not otherwise accomplished prior to the Effective Date,
      all
      Employee Benefit Programs shall be deemed terminated in accordance with their
      terms without further action by the Debtors, the Estate, the Liquidating
      Trustee, or the Committee. All rights are reserved to assert that the agreements
      underlying any of the Employee Benefit Programs constitute executory contracts
      that are rejected pursuant to Article VIII of this Plan. The Liquidating
      Trustee, in consultation with the Committee, shall take any actions and make
      payment of the actual amount, if any, required to be contributed to or on
      account of an employee program to permit the termination of such program and
      discharge all benefit liabilities to participants and beneficiaries of such
      program.

    F.  Dissolution
      of CUseeMe

    As
      of the
      Effective Date, CUseeMe, after having transferred all of its property to the
      Liquidating Trust pursuant to the Plan, and after having terminated the
      employment of all employees, if any, shall be deemed dissolved without the
      necessity for any further actions, except for such administrative actions as
      may
      be necessary to carry out the purposes of the Plan and wind-up its affairs;
      provided, however, that CUseeMe or the Liquidating Trustee shall file with
      the
      Secretary of State for its state of incorporation a certificate of dissolution
      and/or other document necessary for dissolution, which may be executed by an
      officer of CUseeMe (or the Liquidating Trustee) without the need for approval
      by
      the Board of Directors or Equity Interest holders or compliance with
      non-bankruptcy law. 

    F. Exemption
      From Registration

    The
      339,320 shares of New Common Stock issued pursuant to the Plan to holders of
      Allowed Claims shall be issued pursuant to the exemption contained in section
      1145 of the Bankruptcy Code from the requirements of section 5 of the Securities
      Act of 1933, and other applicable federal, state or local law requiring
      registration. The shares subject to the exemption of Section 1145 of the
      Bankruptcy Code include the 63,622 shares to be issued to Gregory Sterling
      in
      partial satisfaction of his administrative claim for services rendered to the
      Estate as the Chief Restructuring Officer in accordance with the order
      authorizing his employment.

    G. Amendments
      to Articles of Incorporation

    On
      the
      Effective Date, the Board of Directors of the Reorganized Debtor shall be
      authorized to amend the Articles of Incorporation and Bylaws to accomplish
      the
      following:

    1. Authorize
      the issuance of fifty million (50,000,000) shares of the Reorganized Debtor’s
      common stock, fifty million (50,000,000) shares of the Reorganized Debtor’s
      Series B common stock, and twenty million (20,000,000) shares of the Reorganized
      Debtor’s preferred stock. The Board of Directors shall determine in their
      discretion the rights, privileges and restrictions granted or imposed on such
      shares;

    2. Effect
      a
      quasi-reorganization for accounting purposes;

    3. Issue
      shares to carry out any transaction contemplated in the Plan without
      solicitation of or notice to shareholders; 

    4. Take
      all
      action necessary and appropriate to carry out the terms of the Plan, including,
      but not limited to, a name change for the Reorganized Debtor to U.S. Dry
      Cleaning Corporation.

    5. Amend
      the
      Reorganized Debtor’s Articles of Incorporation and/or Bylaws to provide the
      maximum indemnification or other protections to the Reorganized Debtor’s
      officers, directors and agents and employees allowed under applicable
      law;

    6. In
      accordance with Section 1123(a)(b) of the Code, include within its charter
      a
      provision prohibiting the issuance of nonvoting equity securities;

    7. Institute
      one or more stock option, stock grant, and director/officer programs to an
      amount up to twenty percent (20%) of the total issued and outstanding shares
      of
      New Common Stock ninety (90) days after the Effective Date.

    H. Taking
      Required Actions

    Without
      shareholder approval, the Board of Directors of the Reorganized Debtor shall
      be
      authorized to take any and all action necessary or appropriate to effectuate
      any
      amendments to the Reorganized Debtor’s Certificate of Incorporation and/or
      Bylaws called for under the Plan and the Board of Directors and officers of
      the
      Reorganized Debtor shall be authorized to execute, verify, acknowledge, file
      and
      publish any and all instruments or documents that may be required to accomplish
      same.

    

    

    V.  

     

    THE
      COMMITTEE

    A.  Survival
      of the Committee

    Except
      as
      otherwise provided in the Plan, the Committee shall continue, as presently
      constituted in the Chapter 11 Cases, after the Effective Date and shall exercise
      the rights and powers set forth in this Article. 

    B.  Rights,
      Powers and Duties of the Committee

    1.  Powers
      of Committee, Generally

    After
      the
      Effective Date and until the Chapter 11 Cases are closed or dismissed, the
      Committee shall continue to have all the powers and duties provided under
      section 1103 of the Bankruptcy Code and the Plan. The Committee is also
      appointed as an additional representative of the Estate under section 1123(b)(3)
      of the Bankruptcy Code, subject to the limitations set forth in the Plan and
      the
      Liquidating Trust Agreement.

    2.  Powers
      of the Committee Over the Liquidating Trustee

    With
      respect to the Liquidating Trustee, the Committee shall have the power to (a)
      monitor and supervise the Liquidating Trustee; (b) remove the Liquidating
      Trustee upon a majority vote of the Committee approving such removal and thirty
      (30) days’ written notice to the Liquidating Trustee; (c) appoint a replacement
      Liquidating Trustee (in the event that the Liquidating Trustee voluntarily
      resigns or is removed by the Committee) upon a majority vote of the Committee;
      (d) in the event of a breach by the Liquidating Trustee, take such action as
      the
      Committee deems necessary to protect the interests of the Estate or the
      beneficiaries of the Liquidating Trust; and (e) prosecute Causes of Action
      on
      behalf of the Estate, the Liquidating Trust and Liquidating
      Trustee.

    C.  Replacement
      and Removal of Committee Members

    Committee
      members shall have the right to resign upon ten (10) days’ written notice to the
      Committee. In addition, a Committee member may be removed if a majority of
      the
      entire Committee (not including the named member) finds there is cause, and
      written notice is provided to the affected member. Cause shall include, but
      is
      not limited to: 

    (i) Intentional
      violation of Committee Bylaws;

    (ii) Willful
      failure to disclose to the Committee facts that give rise to a conflict of
      interest in any matter upon which the Committee member participates in Committee
      deliberations or voting;

    (iii) The
      member no longer holds a General Unsecured Claim against the
      Estate;

    (iv) The
      designated representative of the Committee member frequently fails to
      participate (by telephone or in person) in Committee meetings and telephone
      conferences, and the Committee, in good faith believes that unsecured creditors
      would be better served by a replacement; or 

    (v) The
      presence of circumstances that makes the member incapable of representing the
      interests of unsecured creditors.

    The
      Bankruptcy Court shall retain exclusive jurisdiction over any dispute between
      the Committee and the removed member with respect to whether cause for removal
      exists. Upon resignation or removal, the Committee member shall be discharged
      from any further duties. 

    If
      a
      Committee member is removed or resigns, the Committee, by majority vote of
      the
      remaining Committee members, shall select a replacement member. The selected
      replacement shall represent interests similar to those of the removed or
      resigned member; provided, however, that no Person may be selected as a member
      of the Committee unless such Person holds a General Unsecured Claim against
      the
      Debtors and the Estate. 

    D.  Liability
      of the Committee and its Members

    1.  Standard
      of Care

    Except
      in
      the case of willful misconduct or gross negligence, neither the Committee nor
      any member thereof shall be liable for any loss or damage by reason of any
      action taken or omitted by it pursuant to the discretion, power, and authority
      conferred by the Plan or Bankruptcy Court orders.

    2.  No
      Implied Obligations

    There
      are
      no implied covenants or obligations of the Committee or its members except
      for
      those that are in the Plan or Confirmation Order. 

    3.  Advice
      of Professionals

    In
      the
      exercise or administration of any powers granted under the Plan, or in the
      performance of any of the Committee’s duties and obligations in connection
      therewith, the Committee may consult with and act directly or through any
      Professional. Neither the Committee nor its members shall be liable for anything
      done, suffered or omitted in good faith in accordance with the advice or opinion
      of any Professional.

    4.  Exculpation
      of the Committee

    The
      Committee shall have no duties or obligations to the Estate or the Liquidating
      Trust except as set forth in the Plan and the Confirmation Order.

    5.  Indemnification
      of the Committee

    Neither
      the Committee nor any Committee member shall be liable to any individual
      creditor, and shall be liable only to the Estate, for acts or omissions related
      to performance of its duties for the Estate. The Committee shall be liable
      to
      the Estate only for such of its own acts as shall constitute willful misconduct
      or gross negligence. Except as provided herein, the Committee shall be defended,
      held harmless, and indemnified by the Estate against any and all losses, claims,
      costs, expenses, and liabilities (including reasonable legal fees and expenses)
      asserted by any Person other than the Estate and any costs of defending any
      action brought by any Person other than the Estate to which the Committee may
      be
      subject by reason of its execution in good faith of its duties under the Plan
      and the Confirmation Order and in a manner the Committee reasonably believes
      to
      be in the best interests of the Estate. This indemnity is intended to be and
      shall be interpreted as providing indemnity to the fullest extent permissible
      under California law.

    E.  Employment
      and Compensation of Committee’s Counsel

    1. After
      the
      Effective Date, the employment of Committee’s Counsel by the Estate shall
      continue post-Confirmation on the same terms and conditions as its employment
      in
      the Chapter 11 Cases. Committee’s Counsel shall monitor the post-Confirmation
      activities of the Liquidating Trust, advise the Committee of such activities
      and
      perform all reasonably necessary actions to ensure the execution of the Plan.
      The Committee may not employ additional Professionals absent an order of the
      Bankruptcy Court, after a hearing on notice to the Liquidating Trustee, the
      U.S.
      Trustee, and parties requesting post-confirmation notice. Committee’s Counsel
      shall be compensated from assets of the Estate, with such compensation being
      subject to approval by the Bankruptcy Court on notice to the Committee, the
      Liquidating Trustee, the U.S. Trustee and parties requesting post-confirmation
      notice.

    2. Committee
      members shall serve without compensation, but shall be entitled to reimbursement
      of reasonable and necessary out of pocket expenses. Committee members shall
      submit a detailed invoice to the Liquidating Trustee, which invoice shall be
      paid within thirty (30) days of the submission thereof. If the Liquidating
      Trustee objects to a portion of the invoice, the Liquidating Trustee shall
      timely pay the undisputed portion of the invoice and shall reserve monies in
      the
      amount of the disputed invoice pending resolution of the objection by (a)
      written agreement between the member submitting the invoice and the Liquidating
      Trustee, or (b) resolution of the disputed amount by the Bankruptcy Court
      pursuant to a Final Order. Committee members shall also be entitled to coverage
      by an errors and omissions policy to indemnify them against claims, including
      defense costs, to the same extent as the Liquidating Trustee. 

    

    

    

    

    

    VI.  

     

    DISPUTED
      CLAIMS

    A.  Objections
      to Claims

    1.  Authority
      to Prosecute Claim Objections

    Unless
      otherwise ordered by the Bankruptcy Court after notice and a hearing, and except
      as expressly provided herein, from and after the Effective Date the Liquidating
      Trustee and the Committee shall have the exclusive right to file objections
      to
      Claims and Equity Interests. As to objections filed by the Debtors or the
      Committee prior to the Effective Date but not resolved or determined before
      the
      Effective Date, the Liquidating Trustee and the Committee shall be vested on
      the
      Effective Date with all rights, interests, and authority of the Debtors or
      the
      Committee with respect to the objections. 

    2.  Claims
      Objection Deadline

    Except
      as
      otherwise provided in the Plan, the deadline for objecting to Claims shall
      be
      one hundred eighty (180) days after the Effective Date or as may be further
      extended by order of the Bankruptcy Court; provided, however, that if the holder
      of the Claim is a debtor under any Chapter of the Bankruptcy Code, then the
      deadline shall be one hundred eighty (180) days after the Liquidating Trustee
      or
      the Committee obtains relief from stay or other relief which will permit the
      filing of an objection to such Claim.

    3.  No
      Distributions Pending Allowance

    Notwithstanding
      any other provision of the Plan, no Cash or other property shall be distributed
      under the Plan on account of any Claim or portion thereof unless and until
      such
      Claim or portion thereof becomes Allowed. 

    4.  Authority
      to Settle Disputed Claims

    From
      and
      after the Effective Date, the Liquidating Trustee and the Committee shall be
      authorized to compromise or settle, pursuant to Bankruptcy Rule 9019 and section
      105(a) of the Bankruptcy Code, Disputed Claims or Equity Interests that are
      not
      Allowed hereunder or by Final Order of the Bankruptcy Court in accordance with
      the following procedures, which shall constitute sufficient notice in accordance
      with the Bankruptcy Code and the Bankruptcy Rules for compromise or settlement
      of claims:

    a. If
      the
      proposed amount at which the Disputed Claim to be Allowed is less than or equal
      to $10,000, the Liquidating Trustee or the Committee, as appropriate, shall
      be
      authorized and empowered to settle the Disputed Claim and execute necessary
      documents, including a stipulation of settlement or release, upon (i) the
      Liquidating Trustee or the Committee’s receipt of the consent (such consent not
      to be unreasonably withheld) of the Committee in the case of a settlement by
      the
      Liquidating Trustee or the consent of the Liquidating Trustee in the case of
      a
      settlement by the Committee, or (ii) Bankruptcy Court approval of such
      settlement after a hearing on notice to the Liquidating Trustee or the
      Committee, as appropriate, the U.S. Trustee and parties requesting
      post-confirmation notice; and 

    b. If
      the
      proposed amount at which the Disputed Claim is to be Allowed is greater than
      $10,000, the Liquidating Trustee or the Committee (as appropriate) shall be
      authorized and empowered to settle such Disputed Claim and execute necessary
      documents, including a stipulation of settlement or release, only upon receipt
      of Bankruptcy Court approval of such settlement after a hearing on notice to
      the
      Liquidating Trustee or the Committee, as appropriate, the U.S. Trustee and
      parties requesting post-confirmation notice.

    B.  Setoffs

    The
      Liquidating Trustee may, in accordance with section 553 of the Bankruptcy Code
      and applicable non-bankruptcy law, set off against any Allowed Claim and the
      distributions to be made pursuant to the Plan on account of such Claim (before
      any distribution is made on account of such Claim), the claims, rights and
      causes of action of any nature that the Debtors or the Estate may hold against
      the holder of such Allowed Claim; provided, however, that neither the failure
      to
      effect such a setoff nor the allowance of any Claim hereunder shall constitute
      a
      waiver or release by the Debtors, the Estate, the Liquidating Trustee or the
      Committee of any such claims, rights and causes of action that the Debtors
      or
      the Estate may possess against such holder.

    C.  Estimation
      of Claims

    Subject
      to the allocation of authority and responsibility provided in the Plan, the
      Liquidating Trustee or the Committee may at any time request that the Bankruptcy
      Court estimate, pursuant to section 502(c) of the Bankruptcy Code, any Claim
      that is contingent, unliquidated, or disputed regardless of whether any party
      in
      interest has previously objected to such Claim or whether the Bankruptcy Court
      has ruled on any such objection, and the Bankruptcy Court will retain
      jurisdiction to estimate any Claim at any time during litigation concerning
      any
      objection to any Claim, including during the pendency of any appeal relating
      to
      any such objection. In the event that the Bankruptcy Court estimates any
      contingent or unliquidated Claim, the amount of such estimation will constitute
      either the Allowed amount of such Claim or a maximum limitation on such Claim,
      as determined by the Bankruptcy Court. If the estimated amount constitutes
      a
      maximum limitation on such Claim, the Liquidating Trustee or the Committee,
      as
      appropriate, may elect to pursue any supplemental proceedings to object to
      any
      ultimate payment on such Claim. All of the aforementioned Claims objection,
      estimation and resolution procedures are cumulative and are not necessarily
      exclusive of one another. Claims may be estimated and thereafter resolved by
      any
      mechanism permitted under the Bankruptcy Code or the Plan. 

    D.  Amendments
      to Claims

    Prior
      to
      the Confirmation Date, a Claim may be amended only as agreed upon by the
      Liquidating Trustee, the Committee, and the holder of such Claim, or as
      otherwise permitted by the Bankruptcy Court, the Bankruptcy Rules and applicable
      law. After the Confirmation Date, a Claim may be filed only with the
      authorization of the Bankruptcy Court, and may be amended only with the
      authorization of the Bankruptcy Court or as agreed upon by the Liquidating
      Trustee, the Committee, and the holder of such Claim. Any new or amended Claim
      filed in violation of this paragraph shall be deemed Disallowed in full without
      any action by the Debtors, the Liquidating Trustee, or the
      Committee.

     

    VII.  

     

    DISTRIBUTIONS

    A.  Disbursing
      Agent

    The
      Liquidating Trustee shall act as the disbursing agent under this Plan. The
      Liquidating Trustee shall make distributions of Cash and New Common Stock in
      accordance with the Plan.

    B.  Claim
      Distribution Record Date

    The
      date
      of record for determining the entitlement of any holder of a Claim is the Claim
      Distribution Record Date. The Debtors, the Liquidating Trustee, and each of
      their respective agents, successors, and assigns shall have no obligation to
      recognize any transfer of Claims occurring after the Claim Distribution Record
      Date and shall be entitled instead to recognize and deal for all purposes
      hereunder only with those record holders of Claims as of the Claim Distribution
      Record Date irrespective of the number of distributions to be made under the
      Plan to such Persons or the date of such distributions. An assignee of a
      transferred and assigned scheduled or filed Claim shall be permitted to receive
      distributions in accordance with the Plan only if the transfer and assignment
      has been reflected on the Bankruptcy Court’s docket as of the Claim Distribution
      Record Date. 

    1.  Disputed
      Claims Reserve

    On
      the
      Effective Date and from time-to-time as further distributions are made, the
      Liquidating Trustee shall (a) deposit into the Disputed Claims Reserve Account
      Cash distributions, and (b) reserve shares of New Common Stock for any Disputed
      Claims based on the assumption that all such Disputed Claims will be allowed
      in
      full, unless the Bankruptcy Court shall estimate that a smaller reserve is
      sufficient. If the Bankruptcy Court so orders, any claimant whose Claim is
      so
      estimated shall have recourse only to the reserve established by the Bankruptcy
      Court for such claimant’s Disputed Claim, and not to the Debtors, the Estate,
      the Reorganized Debtor, the Liquidating Trustee, the Liquidating Trust, the
      Committee or any Person receiving property or distributions under the Plan,
      even
      if the Allowed Claim of such Claimant exceeds the maximum estimation of such
      Claim. THUS, THE BANKRUPTCY COURT’S ESTIMATION OF A DISPUTED CLAIM WILL LIMIT
      THE DISTRIBUTION TO BE MADE THEREON, REGARDLESS OF THE AMOUNT FINALLY ALLOWED
      ON
      ACCOUNT OF SUCH CLAIM. All interest, dividends, and profits earned in the
      Disputed Claims Reserve Account shall be property of the Estate and shall accrue
      for the benefit of the Estate, and no holder of any Claim or any Disputed Claim
      shall have any rights in such interest, dividends, or profits, except as
      provided in the Plan.

    C.  Manner
      of Payment Under the Plan

    Any
      payments of Cash made by the Liquidating Trustee on account of Allowed Claims
      pursuant to the Plan may be made either by check or by wire transfer, at the
      option of the Liquidating Trustee, and drawn on or from the Plan Disbursement
      Account.

    D.  Delivery
      of Distributions and Undeliverable Distributions

    Distributions
      to holders of Allowed Claims under the Plan shall be made at the address of
      each
      such holder as set forth on the Schedules filed with the Bankruptcy Court,
      unless superseded by a new address as set forth (i) on a proof of claim filed
      by
      a holder of the Claim, (ii) in another writing notifying the Liquidating Trustee
      of a change of address prior to the Claim Distribution Record Date, or (iii)
      in
      a request for payment of an Administrative Expense Claim, as the case may be.
      If
      any holder’s distribution is returned as undeliverable, no further distributions
      to such holder shall be made unless and until the Liquidating Trustee is
      notified of such holder’s then-current address, at which time all missed
      distributions shall be made to such holder, without interest. 

    Except
      as
      provided in the Plan, any distribution of Cash under the Plan on account of
      an
      Allowed Claim that is undeliverable to the claimant’s last known address and
      which is unclaimed (“Unclaimed Property”) shall be deposited into the Disputed
      Claims Reserve Account to be held for the benefit of the holders of Allowed
      Claims entitled thereto under the terms of the Plan. Upon presentation of proper
      proof by a claimant entitled to such Unclaimed Property, the Unclaimed Property
      due the claimant shall be released from the Disputed Claims Reserve Account
      and
      paid to such claimant.

    Notwithstanding
      the foregoing, one (1) year after the Unclaimed Property is initially
      distributed, claimants shall cease to be entitled to the Unclaimed Property
      in
      which they previously had an interest, and such Unclaimed Property shall then
      be
      transferred to the Plan Disbursement Account and distributed in the same manner
      as other Cash distributions, and the claimant to whom such Unclaimed Property
      was delivered shall forever be removed as the holder of an Allowed Claim against
      the Debtors or the Estate and shall receive no distributions under the Plan.
      Any
      distribution of New Common Stock under this Plan on account of an Allowed Claim
      that is undeliverable to the claimant’s last known address and which is
      unclaimed for one (1) year following the initial distribution shall be cancelled
      on the books and records of the Reorganized Debtor one (1) year after the New
      Common Stock is initially distributed under this Plan. 

    E.  Interest
      on Claims

    Unless
      otherwise specifically provided for in the Plan or the Confirmation Order,
      or
      required by applicable bankruptcy law, interest, fees, costs, and other charges
      accruing or incurred on or after the Petition Date shall not be paid on any
      Claim or Equity Interest. With respect to oversecured Claims (see
      11
      U.S.C. § 506(b)), post-petition interest shall accrue on such Claims at the
      applicable statutory or contractual non-default rate, as the case may
      be.

    F.  Compliance
      with Tax Requirements

    In
      connection with the Plan, to the extent applicable, the Liquidating Trustee
      in
      making Distributions under the Plan shall comply with all tax withholding and
      reporting requirements imposed by any governmental unit, and all distributions
      pursuant to the Plan shall be subject to such withholding and reporting
      requirements. The Liquidating Trustee may withhold the entire distribution
      due
      to any holder of an Allowed Claim until such time as such holder provides the
      necessary information to comply with any withholding requirements of any
      governmental unit. Any property so withheld will then be paid by the Liquidating
      Trustee to the appropriate authority. If the holder of an Allowed Claim fails
      to
      provide the information necessary to comply with any withholding requirements
      of
      any governmental unit within six (6) months from the date of first notification
      to the holder of the need for such information or for the Cash necessary to
      comply with any applicable withholding requirements, then the holder’s
      distribution shall be treated as an undeliverable distribution in accordance
      with this Plan.

    G.  Allocation
      of Distributions

    Distributions
      to any holder of an Allowed Claim shall be allocated first to the original
      principal portion of any such Allowed Claim, and then, to the extent the
      consideration exceeds such amount, to the remainder of such Claim.

    H.  Fractional
      Distributions

    Any
      other
      provision of the Plan notwithstanding, payments of fractions of dollars shall
      not be made. Whenever any payment of a fraction of a dollar under the Plan
      would
      otherwise be called for, the actual payment made shall reflect a rounding of
      such fraction to the nearest whole dollar (up or down), with half dollars being
      rounded up. No fractional shares of New Common Stock shall be issued and all
      fractional shares shall be rounded down to the nearest whole share. Holders
      of
      Allowed Claims who would be entitled to fractional shares but for this provision
      shall receive no consideration therefor because such amount will be de
      minimis.
      

    I.  De
      Minimis
      Distributions

    No
      Cash
      payment of less than twenty dollars ($20.00) shall be made by the Liquidating
      Trustee to any holder of an Allowed Claim unless a request therefor is made
      in
      writing to the Liquidating Trustee. Any undistributed amount shall be held
      over
      to the next distribution date, if any. No distribution of New Common Stock
      shall
      be made to any holder of an Allowed Claim of less than five hundred dollars
      ($500.00) as such distribution will be de
      minimis.
      

    

    J.  No
      Distributions On Account of Intercompany Claims

    Notwithstanding
      anything to the contrary in the Plan, there shall be no distributions on account
      of Intercompany Claims.

    K.  Investment
      of Cash

    The
      Liquidating Trustee shall invest and deposit Cash only in Allowed Investments
      and the Accounts referenced in the Plan and Liquidating Trust Agreement.
      Interest earned on any invested and deposited Cash shall not be payable to
      any
      particular Class or Claim, but shall be held generally as Cash of the Estate.
      

    L.  Claims
      Covered by Insurance

    Any
      Allowed Claim that has available as a source of payment either an insurance
      policy issued to the Debtors or the Liquidating Trustee or in which either
      the
      Debtors, the Liquidating Trustee or the Estate has any rights as named insured
      or beneficiary, including but not limited to general liability, workers
      compensation, and automobile insurance, shall receive distributions pursuant
      to
      this section. Nothing in the Plan modifies, limits, impairs, or otherwise
      affects the terms or provisions of any particular insurance policy, program,
      or
      agreement, or the nature and extent of coverage thereunder.

    1.  Authorized
      Insurance Payments

    If
      an
      insurer stipulates that payment of an Allowed Claim will not affect coverage
      for
      other Claims that may be made under the same insurance policy (i.e., aggregate
      limits are sufficient to cover all such Claims), the claimant may receive
      payment from said insurer without further order of the Bankruptcy Court. If
      there is no such stipulation by the insurer (i.e., an aggregate limit may
      exist), the Liquidating Trustee shall use his best efforts to obtain an order
      from the Bankruptcy Court authorizing the insurer to exercise either of the
      following two (2) payment options:

    a. Option
      A:
      The insurer shall pay the amount of the Allowed Claim (up to the amount of
      policy limits) to the claimant if the Bankruptcy Court estimates that total
      Claims will not exceed the limits of the policy at issue and authorizes payment;
      or 

    b. Option
      B:
      The insurer shall pay the amount of the Allowed Claim (up to the amount of
      the
      policy or bond limits) to the Estate for Pro Rata distribution to all holders
      of
      Allowed Claims whose Claims are insured by the particular insurance policy
      at
      issue. Upon said payment, all suits against the insurer based upon, arising
      out
      of, or related to the Claim for which payment was made shall be enjoined. The
      funds paid to the Estate under this section shall be deposited into a separate
      account, which shall be interest-bearing if possible, and held for payment
      of
      only those Allowed Claims that are covered by the insurance policy at issue;
      and
      distribution of funds in this account shall be made only when and on such terms
      as the Bankruptcy Court authorizes.

    c. The
      Liquidating Trustee or any holder of an Allowed Claim that is covered by an
      insurance policy may file a motion in the Bankruptcy Court for an order
      authorizing payment or distribution under this section, on notice to the
      claimant, the Committee, the Debtors, the Liquidating Trustee, the U.S. Trustee,
      parties requesting post-confirmation notice in accordance with Article XII
      of
      the Plan, the claimant, and the applicable insurance company.

    2.  Exhaustion
      of Insurance

    Distributions
      on account of Allowed Claims shall be made first from the applicable insurance
      policies before any distribution is made on account of such Allowed Claims
      from
      the Cash in the Estate, including from the Disputed Claims Reserve Account.
      The
      Bankruptcy Court may provisionally determine or estimate that a Claim would
      be
      covered by an insurance policy, if and to the extent it were an Allowed Claim,
      in which event the Claim shall be provisionally disallowed and shall not receive
      any distributions from the Estate or the Disputed Claims Reserve Account pending
      a determination by an arbitrator, judge, or court of competent jurisdiction
      as
      to whether and to what extent such Claim is covered by the insurance policy.
      The
      distribution on account of each such Allowed Claim shall be reduced by all
      payments that the holders of said Allowed Claim receives pursuant to any
      insurance policy.

    

    3.  Coverage
      Denied

    a. If
      an
      insurer denies coverage of an Allowed Claim, then such Claim shall be treated
      the same as an Allowed Claim in accordance with the Plan.

    b. If
      the
      Estate, or the holder of an Allowed Claim, obtains a recovery from an insurer
      for an Allowed Claim for which coverage was earlier denied, then the recovery
      shall be treated the same as a payment on account of distributions made to
      holders of Allowed Claims in the same Class under this Plan. If the claimant
      has
      previously received a distribution of Cash from the Estate on account of its
      Allowed Claim, such distribution shall be credited against the distribution
      made
      on account of Allowed Claims in its Class and, to the extent that the insurance
      recovery plus the prior distribution exceeds the distribution on account of
      such
      Allowed Claim, said surplus shall be retained by the Estate or, if held by
      the
      claimant, turned over to the Estate.

    4.  Calculation
      of Claim for Distributions

    In
      the
      event an Allowed Claim receives payment from an insurance policy and the holder
      thereof also seeks distributions of Cash from the Estate, then the aggregate
      of
      (a) all payments received on account of said Allowed Claim from any insurance,
      plus (b) distributions of Cash from the Estate on account of said Allowed Claim,
      shall not exceed (c) an amount equal to the Cash and New Common Stock said
      Allowed Claim would have been entitled to under this Plan.

    VIII.  

    TREATMENT
      OF EXECUTORY CONTRACTS AND UNEXPIRED LEASES

    A.  Approval
      of Rejection of Executory Contracts and Unexpired
      Leases

    All
      executory contracts and unexpired leases that exist between the Debtors and
      any
      Person, whether or not previously listed by the Debtors on their respective
      Schedule G, shall be deemed rejected on the Effective Date, subject to sections
      365(g) and 507(g) of the Bankruptcy Code, except for any executory contract
      or
      unexpired lease (a) that has been assumed or rejected pursuant to an order
      of
      the Bankruptcy Court entered prior to the Confirmation Date, or (b) as to which
      a motion for approval of the assumption of such contract or lease has been
      filed
      and served prior to the Confirmation Date. Entry of the Confirmation Order
      shall
      constitute the approval, pursuant to section 365(a) of the Bankruptcy Code,
      of
      the rejection of the executory contracts and unexpired leases rejected pursuant
      to the Plan. 

    B.  Bar
      Date for Filing Proofs of Claim Relating to Executory Contracts and Unexpired
      Leases Rejected Pursuant to the Plan

    Claims
      arising out of the rejection of an executory contract or unexpired lease
      pursuant to the Plan must be filed with the Bankruptcy Court no later than
      thirty (30) days after the Confirmation Date. Any Claims not filed within such
      applicable time periods shall be forever barred from assertion and shall receive
      no Distributions under this Plan.

     

    IX.  

     

    SETTLEMENT,
      EXCULPATION, INDEMNIFICATION AND RELEASES

    A.  Exculpation
      of Plan Proponents and their Agents

    Neither
      the Debtors, the Committee, nor any of their respective members, officers,
      directors, employees, representatives, and agents (including, but not limited
      to
      any attorneys, advisors, investment bankers and other professionals retained
      by
      such Persons) shall have or will incur any liability to any holder of a Claim
      or
      Equity Interest for any act or omission in connection with, or arising out
      of
      the Chapter 11 Cases, the pursuit of confirmation of the Plan, the consummation
      of the Plan, the administration of the Plan, or the distribution of property
      under the Plan,
      except
      for liability based on willful misconduct as determined by Final Order of the
      Bankruptcy Court. This provision shall not supercede the “safe harbor” from
      liability provided by section 1125(e) of the Bankruptcy Code.

    B.  Indemnification

    The
      Estate shall indemnify all of its officers and directors in office on the
      Confirmation Date from and against any liability to the extent such liability
      is
      covered by any insurance policy in which such directors and officers are
      insured. 

    

    C.  Release
      of Parties Entitled to Indemnification and Exculpation

    All
      Creditors and Equity Interest holders who affirmatively vote to accept the
      Plan
      and to grant a release shall be deemed to release the members, officers,
      directors, employees, representatives, and agents of the Debtors and the
      Committee (including, but not limited to any attorneys, advisors, investment
      bankers and other professionals retained by such Persons) with respect to all
      claims, rights and causes of action that could have been brought by or on behalf
      of such Creditors or Equity Interest holders, whether arising before, on or
      after the Petition Date, known or unknown, suspected or unsuspected, in law
      or
      in equity. 

    In
      addition, the Debtors shall be deemed to release the members, officers,
      directors, employees, representatives, and agents of the Debtors and the
      Committee (including, but not limited to any attorneys, advisors, investment
      bankers and other professionals retained by such Persons) with respect to all
      claims, rights and causes of action that could have been brought by or on behalf
      of such Creditors or Equity Interest holders, whether arising before, on or
      after the Petition Date, known or unknown, suspected or unsuspected, in law
      or
      in equity, except for liability based on willful misconduct as determined by
      Final Order of the Bankruptcy Court.

     

    X.  

     

    EFFECT
      OF CONFIRMATION OF PLAN

    A.  Binding
      Effect of the Plan

    The
      provisions of this Plan and the Liquidating Trust Agreement shall bind the
      Debtors, each Creditor, each Equity Interest holder, the Committee, the
      Liquidating Trustee, and any successor or assign, including a Chapter 7 or
      Chapter 11 trustee, whether or not the Claim or Equity Interest of such Person
      arose before or after the Petition Date or the Effective Date, whether or not
      the Claim or Equity Interest is Impaired under the Plan, and whether or not
      such
      Person has accepted the Plan. Except as provided for in the Plan, all property
      of the Estate is free and clear of all liens, interests in such property, Claims
      and Equity Interests. 

    B.  Subordination
      of Claims

    Nothing
      in this Plan shall be deemed to release the rights, if any, that the Debtors,
      the Estate, the Committee, the Liquidating Trustee, or any creditor may have
      to
      seek to subordinate any Claim pursuant to section 510 of the Bankruptcy Code.
      

    C.  Term
      of Bankruptcy Injunction or Stays

    All
      injunctions or stays provided for in the Chapter 11 Cases under sections 105
      or
      362 of the Bankruptcy Code, or otherwise, and in existence on the Confirmation
      Date, shall remain in full force and effect until all property of the Estate
      and
      all Trust Assets have been distributed in accordance with the Plan and all
      other
      actions required by the Plan have been taken. Without limiting the foregoing,
      except as otherwise provided in the Plan or the Confirmation Order, on and
      after
      the Effective Date, all Persons who have held, currently hold or may hold a
      Claim or an Equity Interest treated or provided for pursuant to the Plan are
      enjoined, until all Trust Assets have been distributed and the Liquidating
      Trust
      has been dissolved, from taking any of the following actions, without leave
      of
      the Bankruptcy Court, on account of such Claim or Equity Interest: (i)
      commencing or continuing, in any manner and in any place, any action or
      proceeding against the Debtors, the Estate, the Reorganized Debtor, the
      Liquidating Trust, the Liquidating Trustee, Professionals or the Committee;
      (ii)
      enforcing, attaching, collecting, or recovering in any manner any judgment,
      award, decree or other order against the Debtors, the Estate, the Liquidating
      Trust, the Reorganized Debtor, the Liquidating Trustee, Professionals or the
      Committee; (iii) creating, perfecting or enforcing any lien against property
      of
      the Estate or any Trust Asset; (iv) taking any action to obtain possession
      of
      property of the Estate or any Trust Asset or to obtain possession of property
      from the Estate or the Liquidating Trust or to exercise control over the Estate,
      property of the Estate, the Liquidating Trust or Trust Assets; and (v)
      commencing or continuing any action or proceeding, in any manner and in any
      place, that does not comply with or is inconsistent with the provisions of
      the
      Plan; provided, however, that injunctions and stays provided under the Plan
      shall not affect or apply to (i) the filing and prosecution of requests for
      payment of Administrative Expense Claims in accordance with Article III.B.1.a
      of
      the Plan, (ii) adversary proceedings or Claims resolution proceedings commenced
      in or pending in the Bankruptcy Court, (iii) proceedings commenced in the
      Bankruptcy Court to enforce provisions of the Plan or with respect to disputes
      concerning payment of Post-Effective Date Administrative Fees and Expenses,
      (iv)
      proceedings pending in courts other than the Bankruptcy Court for the sole
      purpose of liquidating post-Petition Date Claims, (v) accepting any
      distributions made in accordance with the Plan or payments on Post-Effective
      Date Claims, and (vi) settling, adjusting, litigating, paying, or otherwise
      handling, processing, or administering claims under any insurance programs
      or
      policies of the Debtors. 

    D.  Discharge

    FVC
      will
      receive a discharge under this Plan pursuant to and in accordance with the
      provisions of Section 1141 of the Bankruptcy Code because FVC, following its
      anticipated Merger with U.S. Dry Cleaning, will survive as the Reorganized
      Debtor. 

     

    XI.  

     

    RETENTION
      OF JURISDICTION

    A.  Scope
      of Jurisdiction

    Notwithstanding
      confirmation of the Plan or the occurrence of the Effective Date, the Bankruptcy
      Court shall retain exclusive jurisdiction over all matters arising out of,
      arising in, or related to the Chapter 11 Cases and the Plan to the fullest
      extent legally permissible, including, without limitation, for the following
      purposes:

    1.  To
      determine any and all objections to the validity, priority, amount and/or
      allowance of Claims, and to determine any motion, action or adversary proceeding
      concerning the classification and/or subordination of Claims; 

    2.  To
      determine any and all applications, motions, adversary proceedings, and
      contested or litigated matters, whether pending before the Bankruptcy Court
      on
      the Confirmation Date or instituted after the Effective Date, including, without
      limitation, the Causes of Action;

    3.  To
      estimate the amount of any Claim and to estimate or determine the amount of
      Cash
      reasonably necessary to be deposited in the Disputed Claims Reserve Account
      and
      the number of shares of New Common Stock to be reserved on account of any Claim
      or Disputed Claim; 

    4.  To
      determine the extent, validity, priority or amount of any lien asserted against
      property of the Debtors or the Estate;

    5.  To
      determine matters related to the collection, liquidation, realization upon
      and
      enforcement of rights regarding property of the Debtors or property of the
      Estate;

    6.  To
      enforce, interpret, and modify the Plan, the Liquidating Trust Agreement, or
      the
      Confirmation Order to remedy any defect or omission, or to reconcile any
      inconsistency in any order of the Bankruptcy Court, including the Confirmation
      Order, to the extent authorized by the Bankruptcy Code;

    7.  To
      determine all controversies, suits, and disputes that may arise in connection
      with the interpretation, enforcement, implementation, consummation, or
      administration of the Plan, the Liquidating Trust Agreement, and the
      Confirmation Order;

    8.  To
      enter
      a final decree closing the Chapter 11 Cases;

    9.  To
      determine such other matters as may arise in connection with the Plan or the
      Confirmation Order,

    10.  To
      issue
      orders regarding, and in furtherance of, execution and consummation of the
      Plan,
      the Liquidating Trust Agreement and the Confirmation Order;

    11.  To
      hear
      and determine any disputes regarding assets of the Estate or the Liquidating
      Trust, wherever located;

    12.  To
      hear
      and determine any disputes regarding the Liquidating Trustee, the Committee
      or
      its members, and to authorize the Liquidating Trustee or the Committee to take
      certain actions consistent with the Plan, the Liquidating Trust Agreement,
      and
      the Confirmation Order;

    13.  To
      authorize and approve, or disapprove, any settlements or compromises of Claims,
      causes of action, defenses, or controversies asserted by or against the
      Liquidating Trust and the Estate, and the sale, lease or other disposition
      of
      property of the Liquidating Trust and the Estate;

    14.  To
      determine, as is necessary or appropriate under section 505 of the Bankruptcy
      Code or otherwise, matters relating to tax returns filed or to be filed on
      behalf of the Debtors or the Estate for all periods through the end of the
      fiscal year in which the Chapter 11 Cases are closed, including the
      determination of the amount of basis, depreciation, net operating losses, or
      other tax attributes of the Debtors or the Estate;

    15.  To
      implement the provisions of this Plan and to enter orders in aid of confirmation
      of the Plan, including without limitation, appropriate orders to (a) recover
      all
      assets of the Estate, (b) determine causes of action which may be asserted
      by or
      against the Estate, the Liquidating Trustee, Professionals, or the Committee,
      (c) determine, under section 541 of the Bankruptcy Code, whether property is
      property of the Estate, (d) protect the assets of the Estate from creditor
      action, (e) enter orders enabling Persons to perform acts necessary for
      consummation of this Plan under section 1142 of the Bankruptcy Code; and (f)
      enter orders confirming the appointment of a successor or replacement
      Liquidating Trustee, if required under the Plan, or to appoint a successor
      or
      replacement Liquidating Trustee if the Committee is unable to do
      so;

    16.  To
      enter
      such orders as may be appropriate in the event the Confirmation Order is for
      any
      reason stayed, revoked, modified, rescinded or vacated;

    17.  To
      determine motions for the rejection, assumption, or assignment of executory
      contracts or unexpired leases filed before the Effective Date and the allowance
      of any Claims resulting therefrom; and

    18.  To
      issue
      injunctions, make determinations of declaratory relief, or take such other
      legal
      or equitable actions or issue such other orders as may be necessary or
      appropriate to restrain interference with this Plan, the Liquidating Trust
      Agreement, the Confirmation Order, the Estate, the Debtors, the Reorganized
      Debtor, the Liquidating Trustee, Professionals, or the Committee.

    

    B.  Abstention

    If
      the
      Bankruptcy Court abstains from exercising, or declines to exercise, jurisdiction
      or is otherwise without jurisdiction over any matter arising out of the Chapter
      11 Cases, including the matters set forth in this Article, this Article shall
      have no effect upon and shall not control, prohibit, or limit the exercise
      of
      jurisdiction by any other court having competent jurisdiction with respect
      to
      such matter.

     

    XII.  

     

    MISCELLANEOUS
      ITEMS

    A.  Modification/Amendment
      of Plan and Liquidating Trust

    The
      Plan
      Proponents may modify the Plan at any time before the Confirmation Date.
      However, the Court may require a new disclosure statement and/or re-voting
      on
      the Plan if the Plan Proponents modify the Plan before confirmation.

    The
      Plan
      Proponents may also seek to modify the Plan at any time after confirmation
      if
      (1) the Plan has not been substantially consummated, and (2) the Court
      authorizes the proposed modifications after notice and a hearing. 

    The
      Liquidating Trust Agreement shall not be amended without the consent of the
      Plan
      Proponents or a Final Order of the Bankruptcy Court.

    B.  Withdrawal
      or Revocation.

    The
      Plan
      Proponents may withdraw or revoke the Plan at any time prior to the Confirmation
      Date. If the Plan Proponents revoke or withdraw the Plan prior to the
      Confirmation Date, or if the Confirmation Date does not occur, then the Plan
      shall be deemed null and void. In such event, nothing contained herein shall
      be
      deemed to constitute a waiver or release of any Claim by or against the Debtors
      or the Estate or any other Person or to prejudice in any manner the rights
      of
      the Debtors or the Estate or any other Person in any further proceedings
      involving the Debtors or the Estate.

    C.  Result
      of Stay Pending Appeal/Plan Voidability

    In
      the
      event that a stay of the Confirmation Order is issued or in effect, the Plan
      Proponents may, but are not required or in any way obligated to, declare the
      Plan null and void. If the Plan Proponents declare the Plan null and void
      pursuant to this section, they shall file and serve written notice to that
      effect on all known holders of Claims and Equity Interests against the Debtors
      and the Estate, the Liquidating Trustee and the U.S. Trustee.

    D.  Notices.

    All
      notices or requests required or permitted to be made in accordance with the
      Plan
      shall be in writing and delivered either (a) by first class mail, (b) by
      facsimile transmission, (c) by electronic mail as an attachment and in a format
      readable by Adobe Acrobat®, or (d) personally, as follows:

    
      	
              Debtors’
                Counsel:

              Van
                C. Durrer, II, Esq.

              Kurt
                Ramlo, Esq.

              SKADDEN,
                ARPS, SLATE, MEAGHER &  FLOM
                LLP

              300
                South Grand Avenue, Suite 3400

              Los
                Angeles, CA 90071

              Telephone:
                (213) 687-5000

              Facsimile:
                (213) 687.5600

              E-mail:
                vdurrer@skadden.com

            	
              Committee’s
                Counsel:

              Christopher
                Alliotts, Esq.

              SULMEYERKUPETZ

              A
                Professional Corporation

              1080
                Marsh Road, Suite 110

              Menlo
                Park, CA 94025

              Telephone:
                (650) 326-2245

              Facsimile:
                (650) 326-5134

              E-mail:
                calliotts@sulmeyerlaw.com

            
	
              Liquidating
                Trustee:

              Mr.
                Gregory Sterling

              Receivers
                Incorporated

              718
                University Avenue, Suite 213

              Los
                Gatos, CA 95032

              Telephone:
                (408) 354-9797

              Facsimile:
                (408) 354-9701

              E-mail: gsterling@receiversinc.com

            	
              Committee:

              Ms.
                Tracy Wemett

              BroadPR,
                Inc.

              1770
                Massachusetts Avenue, Suite 267

              Cambridge,
                MA 02140

              Telephone:
                (617) 868-5031

              Facsimile:
                (603) 812-3088

              E-mail:
                tracy@broadpr.com

            
	
              U.S.
                Trustee:

              Patricia
                A. Cutler, Esq.

              Office
                of the United States Trustee

              235
                Pine Street, Suite 700

              San
                Francisco, CA 94101

              Telephone:
                (415) 705-3333

               

               

            	
              Reorganized
                Debtor:

              Martin
                J. Brill, Esq.

              Levene,
                Neale, Bender, Rankin & Brill LLP

              1801
                Avenue of the Stars, Suite 1120

              Los
                Angeles, CA 90067

              Telephone:
                (310) 229-1234

              Facsimile:
                (310) 229-1244

              E-mail:
                mjb@lnbrb.com

            

    

    Following
      confirmation of the Plan, general notices will be sent only to those parties
      listed above. If any other party would like to receive such notices
      post-confirmation, that party must make a written request to the Liquidating
      Trustee and the Committee. Any notice to any holder of a Claim or Equity
      Interest shall be given at the address set forth in its Proof of Claim or
      Interest filed with the Bankruptcy Court, or if none, at the address set forth
      in the Schedules. 

    Notice
      shall be deemed given upon the earlier of (1) if notice is given by facsimile
      transmission or by overnight delivery service, the first business day after
      transmissions of facsimile or deposit with the delivery service, (2) if notice
      is mailed, the third calendar day after deposit in the United States Mail,
      first
      class postage prepaid, or (3) if notice is given by electronic mail, the day
      such transmission is received provided that a hardcopy of the notice is also
      sent by regular first class mail on the same day. 

    Any
      Person may change the address at which such Person is to receive notices under
      the Plan by sending written notice, pursuant to the provisions of this section,
      to the Liquidating Trustee and the Committee, and by filing such notice with
      the
      Bankruptcy Court. 

    E.  Representation
      of the Debtors

    Upon
      the
      Effective Date, the representation of the Debtors by general bankruptcy counsel
      whose retention was approved by this Court shall terminate and their withdrawal
      as counsel of record for the Debtors shall be deemed approved by the Court.
      

    F.  Successors
      and Assigns

    The
      rights, benefits and obligations of any Person named or referred to in this
      Plan
      shall be binding upon and inure to the benefit of any heir, executor,
      administrator, successor, or assignee of such Person.

    G.  Severability

    In
      the
      event that the Bankruptcy Court determines, prior to the Confirmation Date,
      that
      any provision of the Plan is invalid, void or unenforceable, the Bankruptcy
      Court shall, with the consent of the Plan Proponents, have the power to alter
      and interpret such term or provision to make it valid or enforceable to the
      maximum extent practicable, consistent with the original purpose of the term
      or
      provision held to be invalid, void or unenforceable, and such term or provision
      shall then be applicable as altered or interpreted. Notwithstanding any such
      holding, alteration or interpretation, the remainder of the terms and provisions
      of the Plan shall remain in full force and effect and shall in no way be
      affected, impaired or invalidated by such holding, alteration or interpretation.
      The Confirmation Order shall constitute a judicial determination and shall
      in no
      way be affected, impaired or invalidated by such holding, alteration or
      interpretation. The Confirmation Order shall provide that each term and
      provision of the Plan, as it may have been altered or interpreted in accordance
      with the foregoing, is valid and enforceable pursuant to its terms.

    H.  Governing
      Law

    Except
      to
      the extent the Bankruptcy Code or Bankruptcy Rules are applicable, the rights
      and obligations arising under the Plan shall be governed by, and construed
      and
      enforced in accordance with, the laws of the State of California, without giving
      effect to the principles of conflicts of law thereof.

    I.  Headings

    Headings
      are used in the Plan for convenience and reference only, and shall not
      constitute a part of the Plan for any other purpose.

    J.  Saturday,
      Sunday or Legal Holiday.

    If
      any
      payment or act under the Plan is required to be made or performed on a date
      that
      is not a Business Day, then the making of such payment or the performance of
      such act may be completed on the next succeeding Business Day in accordance
      with
      Bankruptcy Rule 9006(a), but such payment or act shall be deemed to have been
      completed as of the required date.

    K.  Incorporation
      of Liquidating Trust Agreement and Exhibits.

    The
      Liquidating Trust Agreement is essential to and constitutes a material and
      integral part of this Plan. As such, the Liquidating Trust Agreement is hereby
      incorporated into this Plan in its entirety by this reference as if set forth
      in
      full. All exhibits to the Plan are also hereby incorporated into and are a
      part
      of the Plan as if fully set forth herein.

    

    L.  Post-Confirmation
      Status Report.

    Within
      120 days of the entry of the order confirming the Plan, the Liquidating Trustee
      shall file a status report with the Bankruptcy Court explaining what progress
      has been made toward consummation of the confirmed Plan. The status report
      shall
      be served on the Debtor’s Counsel, the Committee’s Counsel, the U.S. Trustee,
      and those parties who have requested post-confirmation notice. Further status
      reports shall be filed every 120 days and served on the same entities.

    M.  Post-Confirmation
      Conversion/Dismissal

    A
      Creditor or other party in interest may bring a motion to convert or dismiss
      the
      case under § 1112(b), after the Plan is confirmed, if there is a default in
      performing the Plan. If the Bankruptcy Court orders the case converted to
      Chapter 7 after the Plan is confirmed, then all property that had been property
      of the Estate or the Liquidating Trust, and that has not been disbursed pursuant
      to the Plan, will revest in the Chapter 7 estate, and the automatic stay will
      be
      reimposed upon the revested property only to the extent that relief from stay
      was not previously granted by the Bankruptcy Court during this
      case.

    N.  Supremacy
      Clause

    If
      any
      conflict exists between the terms of the Plan and the Disclosure Statement,
      the
      terms of the Plan shall control. 

    O.  Final
      Decree

    Once
      the
      Estate has been fully administered as referred to in Bankruptcy Rule 3022,
      the
      Liquidating Trustee, the Committee or other party as the Court shall designate
      

    in
      the
      Confirmation Order, shall file a motion with the Court to obtain a final decree
      closing the Chapter 11 Cases. 

     

    DATED:
      September 21, 2005   FIRST
      VIRTUAL COMMUNICATIONS, INC.,
      a

                              Delaware
      corporation, debtor and
      debtor in possession

    

    By:
      /s/
      Jonathan G. Morgan   

    Name:
      Jonathan G. Morgan

    Title:
      President and CEO

    

    DATED:
      September 21, 2005        CUseeME
      NETWORKS, INC.,
      a
      Delaware 

                                 corporation,
      debtor and debtor in possession

    

    By:
      /s/
      Jonathan G. Morgan   

    Name:
      Jonathan G. Morgan

    Title:
      President and CEO

    

    DATED:
      September 21, 2005         OFFICIAL
      COMMITTEE OF UNSECURE

         
                CREDITORS

    

    By:
      /s/
      Tracy Wemett    

    Name:
      Tracy Wemett, BroadPR, Inc.

    Title:
      Chairperson

    

    

    DATED:
      September
      21, 2005         SKADDEN,
      ARPS, SLATE, MEAGHER & FLOM L

                         
      A Professional Corporation

     

    By: /s/
      Van C. Durrer    

    Van
      C.
      Durrer

    Kurt
      Ramlo

    Melissa
      T. Kahn

    Attorneys
      for the First Virtual Communications,

    Inc.
      and
      CUseeMe Networks, Inc.,

    Debtors
      and Debtors in Possession

    

    

    

    DATED:
      September
      21, 2005         SULMEYERKUPETZ

                     
      A Professional Corporation

    

    By: /s/
      Christopher Alliotts   

    Christopher
      Alliotts

    Attorneys
      for the Official Committee 

    of
      Unsecured Creditors

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