Stock Exchange Agreement - Yahoo! Inc. and Net2Phone Inc.
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STOCK EXCHANGE AGREEMENT
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by and between
Yahoo! Inc.
and
NET2PHONE, INC.
Dated as of March 30, 2000
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STOCK EXCHANGE AGREEMENT
THIS STOCK EXCHANGE AGREEMENT is made and entered into as of March 30,
2000, by and between Yahoo! Inc., a Delaware corporation (the "Yahoo!"), and
Net2Phone, Inc., a Delaware corporation ("Net2Phone").
THE PARTIES AGREE AS FOLLOWS:
ARTICLE I
AUTHORIZATION AND SALE OF STOCK
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Section 1.1 Authorization of the Shares. Yahoo! has authorized the
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issuance and exchange of 806,452 shares of Common Stock of Yahoo!, par value
$0.001 per share (the "Yahoo! Shares"), at a price per share equal to $186.00,
and Net2Phone has authorized the issuance and exchange of 2,777,778 shares of
Common Stock of Net2Phone, par value $0.01 per share (the "Net2Phone Shares"),
at a price per share equal to $54.00, all pursuant to the terms and conditions
of this Agreement.
Section 1.2 Exchange of Shares. Subject to the terms and conditions
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hereof, contemporaneously with the execution of this Agreement, Yahoo! will
issue to Net2Phone the Yahoo! Shares in exchange for the Net2Phone Shares, and
Net2Phone shall issue to Yahoo! the Net2Phone Shares in exchange for the Yahoo!
Shares.
ARTICLE II
CLOSING DATE; DELIVERY
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Section 2.1 Closing Date. The consummation of the exchange of the Yahoo!
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Shares and the Net2Phone Shares hereunder (the "Closing") shall be held at the
offices of Venture Law Group, A Professional Corporation, 2800 Sand Hill Road,
Menlo Park, California, contemporaneously with the execution of this Agreement
or at such other time and place as Yahoo! and Net2Phone mutually agree upon in
writing (the "Closing Date").
Section 2.2 Delivery. At the Closing, Yahoo! shall deliver to Net2Phone
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certificate(s) representing the Yahoo! Shares and Net2Phone shall deliver to
Yahoo! certificate(s) representing the Net2Phone Shares.
ARTICLE III
REPRESENTATIONS AND WARRANTIES OF YAHOO!
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Yahoo! hereby represents and warrants to Net2Phone, at and as of the date
of this Agreement and at and as of the Closing Date, as follows:
Section 3.1 Organization Yahoo! is a corporation duly organized, validly
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existing and in good standing under the laws of the State of Delaware and has
all requisite corporate power to own, lease and operate its property and to
carry on its business as now being conducted and is duly qualified or licensed
to do business and is in good standing in each jurisdiction in which the
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failure to be so qualified or licensed would be reasonably likely to have a
material adverse effect on the business, assets (including intangible assets),
liabilities, condition (financial or otherwise), prospects, value, property or
results or operations (a "Material Adverse Effect") of Yahoo!.
Section 3.2 Valid Issuance of Common Stock. The Yahoo! Shares, when
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issued and paid for in accordance with this Agreement will be duly authorized,
validly issued, fully paid, and non-assessable, and issued in compliance with
all applicable federal or state securities laws.
Section 3.3 Authority; No Conflict; Required Filings and Consents.
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(a) Yahoo! has all requisite corporate power and authority to enter
into this Agreement and to consummate the transactions contemplated by this
Agreement, including the acquisition of the Net2Phone Shares. The execution and
delivery of this Agreement and the consummation of the transactions contemplated
by this Agreement have been duly authorized by all necessary corporate action on
the part of Yahoo!. This Agreement has been duly executed and delivered by
Yahoo!, and constitutes the valid and binding obligation of Yahoo!, enforceable
in accordance with its terms, except to the extent that enforceability may be
limited by applicable bankruptcy, reorganization, insolvency, moratorium or
other laws affecting the enforcement of creditors' rights generally and by
general principles of equity.
(b) The execution and delivery by Yahoo! of this Agreement does not,
and consummation of the transactions contemplated by this Agreement will not,
(i) conflict with, or result in any violation or breach of any provision of the
Certificate of Incorporation or Bylaws of Yahoo!, (ii) result in any violation
or breach of, or constitute (with or without notice or lapse of time, or both) a
default (or give rise to a right of termination, cancellation or acceleration of
any obligation or loss of any material benefit) under any of the terms,
conditions or provisions of any note, bond, mortgage, indenture, lease, contract
or other agreement, instrument or obligation to which Yahoo! is a party or by
which any of its properties or assets may be bound, or (iii) conflict or violate
any permit, concession, franchise, license, judgment, order, decree, statute,
law, ordinance, rule or regulation applicable to Yahoo! or any of its properties
or assets, except in the case of (ii) and (iii) for any such conflicts,
violations, defaults, terminations, cancellations or accelerations which would
not be reasonably likely to have a Material Adverse Effect on Yahoo! and its
subsidiaries, taken as a whole.
(c) No consent, approval, order or authorization of, or registration,
declaration or filing with, any court, administrative agency or commission or
other governmental authority or instrumentality ("Governmental Entity") is
required by or with respect to Yahoo! in connection with the execution and
delivery of this Agreement or the consummation of the transactions contemplated
hereby, except for (i) such consents, approvals, orders, authorizations,
registrations, declarations and filings as may be required under applicable
federal and state securities laws and the laws of any foreign country, and (ii)
such other consents, authorizations, filings, approvals and registrations which,
if not obtained or made, would be reasonably expected to have a Material Adverse
Effect on Yahoo! and its subsidiaries, taken as a whole.
Section 3.4 Commission Filings; Financial Statements.
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(a) Yahoo! has filed with the Securities and Exchange Commission (the
"Commission") and made available to Net2Phone or its representatives all forms,
reports and documents required to be filed by Yahoo! with the Commission since
June 30, 1999 (collectively, the "Yahoo! Commission Reports"). Yahoo!
Commission Reports (i) at the time filed, complied in all material respects with
the applicable requirements of the Securities Act of 1933, as amended, (the
"Securities Act"), and the Securities Exchange Act of 1934, as amended (the
"Exchange Act"), as the case may be, and (ii) did not at the time they were
filed (or if amended or superseded by a filing prior to the date of this
Agreement, then on the date of such filing) contain any untrue statement of a
material fact or omit to state a material fact required to be stated therein or
necessary in order to make the statements therein, in the light of the
circumstances under which they were made, not misleading.
(b) Each of the financial statements (including, in each case, any
related notes) contained in Yahoo! Commission Reports, including any such Report
filed after the date of this Agreement until the Closing, complied as to form in
all material respects with the applicable published rules and regulations of the
Commission with respect thereto, was prepared in accordance with generally
accepted accounting principles applied on a consistent basis throughout the
periods involved (except as may be indicated in the notes to such financial
statements or, in the case of unaudited statements, as permitted by Form 10-Q of
the Commission) and fairly presented the consolidated financial position of
Yahoo! and its subsidiaries as at the respective dates and the consolidated
results of its operations and cash flows for the periods indicated, except that
the unaudited interim financial statements were or are subject to normal and
recurring year-end adjustments which were not or are not expected to be material
in amount.
Section 3.5 Purchase Entirely for Own Account. The Net2Phone Shares to be
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acquired by Yahoo! will be acquired for investment for Yahoo!'s own account, not
as a nominee or agent, and not with a view to the resale or distribution of any
part thereof, and that Yahoo! has no present intention of selling, granting any
participation in, or otherwise distributing the same. Yahoo! further represents
that it does not presently have any contract, undertaking, agreement or
arrangement with any person to sell, transfer or grant participation to such
person or to any third person, with respect to any of the Net2Phone Shares.
Section 3.6 Investment Experience. Yahoo! is an "accredited investor" as
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defined in Rule 501(a) under the Securities Act. Yahoo! is aware of Net2Phone's
business affairs and financial condition and has had access to and has acquired
sufficient information about Net2Phone to reach an informed and knowledgeable
decision to acquire the Net2Phone Shares. Yahoo! has such business and
financial experience as is required to give it the capacity to protect its own
interests in connection with the purchase of the Net2Phone Shares.
Section 3.7 Restricted Securities. Yahoo! understands that the Net2Phone
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Shares are characterized as "restricted securities" under applicable U.S.
federal and state securities laws inasmuch as they are being acquired from
Net2Phone in a transaction not involving a public offering and that, pursuant to
these laws and applicable regulations, Yahoo! must hold the Net2Phone Shares
indefinitely unless they are registered with the Commission and qualified by
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state authorities, or an exemption from such registration and qualification
requirements is available. Yahoo! further acknowledges that if an exemption
from registration or qualification is available, it may be conditioned on
various requirements including, but not limited to, the time and manner of sale,
the holding period for the Net2Phone Shares, and on requirements relating to
Net2Phone which are outside of Yahoo!'s control, and which Net2Phone is under no
obligation and may not be able to satisfy. In this connection, Yahoo!
represents that it is familiar with SEC Rule 144, as presently in effect, and
understands the resale limitations imposed thereby and by the Securities Act.
Section 3.8 Legends. Yahoo! understands that the Net2Phone Shares, and
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any securities issued in respect thereof or exchange therefor, may bear one or
all of the following legends:
(a) "THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AND HAVE BEEN ACQUIRED FOR
INVESTMENT AND NOT WITH A VIEW TO, OR IN CONNECTION WITH, THE SALE OR
DISTRIBUTION THEREOF. THESE SECURITIES MAY NOT BE OFFERED, SOLD, TRANSFERRED OR
OTHERWISE DISPOSED OF UNLESS REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED, AND ANY APPLICABLE STATE SECURITIES LAWS OR AN EXEMPTION FROM SUCH
REGISTRATION IS AVAILABLE."
(b) Any legend required by the Blue Sky laws of any state to the
extent such laws are applicable to the shares represented by the certificate so
legended.
Section 3.9 Issuance and Registration of Yahoo! Shares. The Yahoo! Shares
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to be issued to Net2Phone pursuant to this Agreement shall be issued pursuant to
the registration statement on Form S-4 filed by Yahoo! with the Commission on
January 12, 2000 (the "Shelf Registration Statement"), and as such shall be
deemed unrestricted securities for purposes of Rule 144 under the Securities Act
and shall be tradeable by Net2Phone without any contractual restriction (other
than as set forth in this Agreement) created under any contract, agreement or
similar instrument to which Yahoo! is a party or by which any of its properties
or assets may be bound or, to the knowledge of Yahoo!, created under any other
contract, agreement or similar instrument.
ARTICLE IV
REPRESENTATIONS AND WARRANTIES OF NET2PHONE
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Net2Phone hereby represents and warrants to Yahoo!, at and as of the date
of this Agreement and at and as of the Closing, as follows:
Section 4.1 Organization Net2Phone is a corporation duly organized,
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validly existing and in good standing under the laws of the State of Delaware
and has all requisite corporate power to own, lease and operate its property and
to carry on its business as now being conducted and is duly qualified or
licensed to do business and is in good standing in each jurisdiction in
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which the failure to be so qualified or licensed would be reasonably likely to
have a Material Adverse Effect on Net2Phone.
Section 4.2 Valid Issuance of Common Stock. The Net2Phone Shares, when
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issued and paid for in accordance with this Agreement will be duly authorized,
validly issued, fully paid, and non-assessable and issued in compliance with all
applicable federal or state securities laws.
Section 4.3 Authority; No Conflict; Required Filings and Consents.
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(a) Net2Phone has all requisite corporate power and authority to enter
into this Agreement and to consummate the transactions contemplated by this
Agreement, including the acquisition of the Yahoo! Shares. The execution and
delivery of this Agreement and the consummation of the transactions contemplated
by this Agreement have been duly authorized by all necessary corporate action on
the part of Net2Phone. This Agreement has been duly executed and delivered by
Net2Phone, and constitutes the valid and binding obligation of Net2Phone,
enforceable in accordance with its terms, except to the extent that
enforceability may be limited by applicable bankruptcy, reorganization,
insolvency, moratorium or other laws affecting the enforcement of creditors'
rights generally and by general principles of equity.
(b) The execution and delivery by Net2Phone of this Agreement does
not, and consummation of the transactions contemplated by this Agreement will
not, (i) conflict with, or result in any violation or breach of any provision of
the Certificate of Incorporation or Bylaws of Net2Phone, (ii) result in any
violation or breach of, or constitute (with or without notice or lapse of time,
or both) a default (or give rise to a right of termination, cancellation or
acceleration of any obligation or loss of any material benefit) under any of the
terms, conditions or provisions of any note, bond, mortgage, indenture, lease,
contract or other agreement, instrument or obligation to which Net2Phone is a
party or by which any of its properties or assets may be bound, or (iii)
conflict or violate any permit, concession, franchise, license, judgment, order,
decree, statute, law, ordinance, rule or regulation applicable to Net2Phone or
any of its properties or assets, except in the case of (ii) and (iii) for any
such conflicts, violations, defaults, terminations, cancellations or
accelerations which would not be reasonably likely to have a Material Adverse
Effect on Net2Phone and its subsidiaries, taken as a whole.
(c) No consent, approval, order or authorization of, or registration,
declaration or filing with, any Governmental Entity is required by or with
respect to Net2Phone in connection with the execution and delivery of this
Agreement or the consummation of the transactions contemplated hereby, except
for (i) such consents, approvals, orders, authorizations, registrations,
declarations and filings as may be required under applicable federal and state
securities laws and the laws of any foreign country, and (iii) such other
consents, authorizations, filings, approvals and registrations which, if not
obtained or made, would be reasonably expected to have a Material Adverse Effect
on Net2Phone and its subsidiaries, taken as a whole.
Section 4.4 Commission Filings; Financial Statements.
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(a) Net2Phone has filed with the Commission and made available to
Net2Phone or its representatives all forms, reports and documents required to be
filed by Net2Phone with the Commission since July 30, 1999 (collectively, the
"Net2Phone Commission Reports"). Net2Phone Commission Reports (i) at the time
filed, complied in all material respects with the applicable requirements of the
Securities Act, and the Exchange Act, as the case may be, and (ii) did not at
the time they were filed (or if amended or superseded by a filing prior to the
date of this Agreement, then on the date of such filing) contain any untrue
statement of a material fact or omit to state a material fact required to be
stated therein or necessary in order to make the statements therein, in the
light of the circumstances under which they were made, not misleading.
(b) Each of the financial statements (including, in each case, any
related notes) contained in Net2Phone Commission Reports, including any such
Report filed after the date of this Agreement until the Closing, complied as to
form in all material respects with the applicable published rules and
regulations of the Commission with respect thereto, was prepared in accordance
with generally accepted accounting principles applied on a consistent basis
throughout the periods involved (except as may be indicated in the notes to such
financial statements or, in the case of unaudited statements, as permitted by
Form 10-Q of the Commission) and fairly presented the consolidated financial
position of Net2Phone and its subsidiaries as at the respective dates and the
consolidated results of its operations and cash flows for the periods indicated,
except that the unaudited interim financial statements were or are subject to
normal and recurring year-end adjustments which were not or are not expected to
be material in amount.
Section 4.5 Access to Information. Net2Phone acknowledges that it has
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received and reviewed a copy of the Shelf Registration Statement (including the
prospectus therein), together with Amendment No. 1 thereto (including the
prospectus therein) filed by Yahoo! with the Commission on February 11, 2000.
ARTICLE V
COVENANTS
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Section 5.1 Post-Closing Lock-Up for Net2Phone.
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(a) Net2Phone agrees that:
(i) Net2Phone will not sell in the open market in excess of
100,000 of the Yahoo! Shares (subject to adjustment for future stock
splits, dividends and the like) in any one trading day, without the prior
written approval of Yahoo!;
(ii) during 90-day period commencing on the Closing Date,
Net2Phone will not sell in the open market more than one-third of the
original number of Yahoo! Shares issued to Net2Phone pursuant to this
Agreement;
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(iii) during 180-day period commencing on the Closing Date,
Net2Phone will not sell in the open market more than two-thirds of the
original number of Yahoo! Shares issued to Net2Phone pursuant to this
Agreement; and
(iv) following such 180-day period, Net2Phone shall be free to
transfer any of the Yahoo! Shares without restriction under this Section
5.1 (other than the restriction set forth in Section 5.1(a)(i) above).
(b) Notwithstanding the foregoing, Net2Phone may sell or otherwise
transfer any of the Yahoo! Shares (i) to any wholly-owned subsidiary of
Net2Phone; provided, however, that in any such case, it shall be a condition to
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the transfer that the subsidiary execute an agreement stating that it is
receiving and holding such capital stock subject to the provisions of this
Agreement and there shall be no further transfer of such capital stock except in
accordance with this Agreement, and provided further that any such transfer
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shall not involve a disposition for value; or (ii) with the prior written
consent of Yahoo!. Net2Phone also agrees and consents to the entry of stop
transfer instructions with Yahoo!'s transfer agent and registrar against the
transfer of the Yahoo! Shares except in compliance with the foregoing
restrictions.
(c) Further, notwithstanding anything to the contrary in this Section
5.1, in the event that the Board of Directors of Net2Phone, following
consultation with its legal counsel, reasonably concludes in good faith that it
is required to transfer all or a portion of the Yahoo! Shares to avoid a
requirement to register under the Investment Company Act of 1940, as amended
(the "Investment Company Act"), Net2Phone shall so notify Yahoo! and may
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thereafter sell any shares it deems necessary to avoid any such registration or
other requirements under the Investment Company Act.
Section 5.1 Post-Closing Lock-Up for Yahoo!.
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(a) Yahoo! agrees that:
(ii) during 90-day period commencing on the Closing Date, Yahoo!
will not sell in the open market more than one-third of the original number
of Net2Phone Shares issued to Yahoo! pursuant to this Agreement;
(iii) during 180-day period commencing on the Closing Date,
Yahoo! will not sell in the open market more than two-thirds of the
original number of Net2Phone Shares issued to Yahoo! pursuant to this
Agreement; and
(iv) following such 180-day period, Yahoo! shall be free to
transfer any of the Net2Phone Shares without restriction under this Section
5.2.
(b) Notwithstanding the foregoing, Yahoo! may sell or otherwise
transfer any of the Net2Phone Shares (i) to any wholly-owned subsidiary of
Yahoo!; provided, however, that in any such case, it shall be a condition to the
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transfer that the subsidiary execute an agreement stating that it is receiving
and holding such capital stock subject to the provisions of this Agreement and
there shall be no further transfer of such capital stock except in accordance
with this Agreement, and provided further that any such transfer shall not
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involve a disposition for
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value; or (ii) with the prior written consent of Net2Phone. Yahoo! also agrees
and consents to the entry of stop transfer instructions with Net2Phone's
transfer agent and registrar against the transfer of the Net2Phone Shares except
in compliance with the foregoing restrictions.
Section 5.3 Public Disclosure. Yahoo! and Net2Phone shall consult with
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each other, and to the extent practicable, agree, before issuing any press
release or otherwise making any public statement with respect to the
transactions contemplated by this Agreement and will not issue any such press
release or make any such public statement prior to such consultation, except as
may be required by law or any listing agreement with the Nasdaq Stock Market or
a national securities exchange.
ARTICLE VI
MISCELLANEOUS
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Section 6.1 Governing Law. This Agreement shall be governed in all
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respects by the laws of the State of Delaware (without reference to its
conflicts of laws principles).
Section 6.2 Survival. The representations, warranties, covenants and
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agreements made herein shall survive the closing of the transactions
contemplated hereby.
Section 6.3 Successors and Assigns. Except as otherwise expressly
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provided herein, the provisions hereof shall inure to the benefit of, and be
binding upon, the successors, assigns, heirs, executors and administrators of
the parties hereto.
Section 6.4 Entire Agreement; Amendment. This Agreement and the other
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documents delivered pursuant hereto constitute the full and entire understanding
and agreement among the parties with regard to the subjects hereof and thereof.
Any term of this Agreement may be amended and the observance of any term of this
Agreement may be waived (either generally or in a particular instance and either
retroactively or prospectively), only with the written consent of Yahoo! and
Net2Phone.
Section 6.5 Notices and Other Communications. Every notice or other
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communication required or contemplated by this Agreement by either party shall
be delivered either by (i) personal delivery, (ii) postage prepaid return
receipt requested registered or certified mail or the equivalent of registered
or certified mail under the laws of the country where mailed, (iii) nationally
recognized overnight courier, such as Federal Express or UPS, or (iv) facsimile
with a confirmation copy sent simultaneously by postage prepaid, return receipt
requested, registered or certified mail, in each case addressed to Yahoo! or
Net2Phone as the case may be at the following address:
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To Yahoo!: Yahoo! Inc.
3420 Central Expressway
Santa Clara, CA 95051
Attn: Senior Vice President, Corporate Development
Facsimile: (408) 328-7939
With a copy at the same address to the attention of the
General Counsel, and a copy to:
Venture Law Group
A Professional Corporation
2800 Sand Hill Road
Menlo Park, California 94025
Attn.: Steven J. Tonsfeldt
Keith A. Miller
Facsimile: (415) 233-8386
To Net2Phone: Net2Phone, Inc.
171 Main Street
Hackensack, New Jersey 07601
Attn: Chief Executive Officer
Facsimile: (
With a copy to:
Kirkland & Ellis
Aon Center
200 East Randolph Drive
Chicago, Illinois 60601
Attn: Richard W. Porter
Facsimile: (312) 861-2200
or at such other address as the intended recipient previously shall have
designated by written notice to the other party (with copies to counsel as may
be indicated on the signature page). Notice by registered or certified mail
shall be effective on the date it is officially recorded as delivered to the
intended recipient by return receipt or equivalent, and in the absence of such
record of delivery, the effective date shall be presumed to have been the fifth
(5th) business day after it was deposited in the mail. All notices delivered in
person or sent by courier shall be deemed to have been delivered to and received
by the addressee and shall be effective on the date of personal delivery;
notices delivered by facsimile with simultaneous confirmation copy by registered
or certified mail shall be deemed delivered to and received by the addressee and
effective on the date sent. Notice not given in writing shall be effective only
if acknowledged in writing by a duly authorized representative of the party to
whom it was given.
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Section 6.6 Delays or Omissions. No delay or omission to exercise any
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right, power or remedy accruing to any holder of any Shares, upon any breach or
default of Yahoo! under this Agreement, shall impair any such right, power or
remedy of such holder nor shall it be construed to be a waiver of any such
breach or default, or an acquiescence therein, or of or in any similar breach or
default thereafter occurring; nor shall any waiver of any single breach or
default be deemed a waiver of any other breach or default theretofore or
thereafter occurring. Any waiver, permit, consent or approval of any kind or
character on the part of any holder of any breach or default under this
Agreement, or any waiver on the part of any holder of any provisions or
conditions of this Agreement, must be in writing and shall be effective only to
the extent specifically set forth in such writing. All remedies either under
this Agreement, or by law or otherwise afforded to any holder, shall be
cumulative and not alternative.
Section 6.7 Severability. In case any provision of this Agreement shall
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be invalid, illegal or unenforceable, the validity, legality and enforceability
of the remaining provisions shall not in any way be affected or impaired
thereby.
Section 6.8 Finder's Fees.
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(a) Yahoo! (i) represents and warrants that it has retained no finder
or broker in connection with the transactions contemplated by this Agreement and
(ii) hereby agrees to indemnify and to hold Net2Phone harmless of and from any
liability for commission or compensation in the nature of a finder's fee to any
broker or other person or firm (and the costs and expenses of defending against
such liability or asserted liability) for which Yahoo!, or any of its employees
or representatives, is responsible.
(b) Net2Phone (i) represents and warrants that it has retained no
finder or broker in connection with the transactions contemplated by this
Agreement and (ii) hereby agrees to indemnify and to hold Yahoo! harmless of and
from any liability for any commission or compensation in the nature of a
finder's fee to any broker or other person or firm (and the costs and expenses
of defending against such liability or asserted liability) for which Net2Phone,
or any of its employees or representatives, is responsible.
Section 6.9 California Corporate Securities Law. THE SALE OF THE
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SECURITIES WHICH ARE THE SUBJECT OF THIS AGREEMENT HAS NOT BEEN QUALIFIED WITH
THE COMMISSIONER OF CORPORATIONS OF THE STATE OF CALIFORNIA, AND THE ISSUANCE OF
SUCH SECURITIES OR THE PAYMENT OR RECEIPT OF ANY PART OF THE CONSIDERATION
THEREFOR PRIOR TO SUCH QUALIFICATION IS UNLAWFUL, UNLESS THE SALE OF SECURITIES
IS EXEMPT FROM THE QUALIFICATION BY SECTION 25100, 25102, OR 25105 OF THE
CALIFORNIA CORPORATIONS CODE. THE RIGHTS OF ALL PARTIES TO THIS AGREEMENT ARE
EXPRESSLY CONDITIONED UPON SUCH QUALIFICATION BEING OBTAINED, UNLESS THE SALE IS
SO EXEMPT.
Section 6.10 Counterparts. This Agreement may be executed in any number
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of counterparts, each of which shall be an original, but all of which together
shall constitute one instrument. Execution and delivery of this Agreement by
exchange of facsimile copies bearing
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the facsimile signature of a party hereto shall constitute a valid and binding
execution and delivery of this Agreement by such party. Such facsimile copies
shall constitute enforceable original documents.
Section 6.11 Attorneys' Fees. If any action or proceeding shall be
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commenced to enforce this Agreement or any right arising in connection with this
Agreement, the prevailing party in such action or proceeding shall be entitled
to recover from the other party, the reasonable attorneys' fees, costs and
expenses incurred by such prevailing party in connection with such action or
proceeding or negotiation to avoid such action or proceeding.
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IN WITNESS WHEREOF, the parties have executed this Agreement as of the day
and year set forth in the first paragraph hereof.
YAHOO! INC.
By: /s/ Jeff Mallett
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Name: Jeff Mallett
Title: President and Chief Operating
Officer
NET2PHONE, INC.
By: /s/ Howard Balter
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Name: Howard Balter
Title: Chief Executive Officer
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