Exhibit 10.1

 

VOXWARE, INC.

 

 

 

Series D Convertible Preferred Stock Purchase Agreement

 

 

 

Dated as of April 30, 2004

 

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VOXWARE, INC.

 

Series D Convertible Preferred Stock Purchase Agreement

 

Dated as of April 30, 2004

 

Table of Contents

 

     Page

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CAPITALIZATION

   III

ARTICLE I PURCHASE, SALE AND TERMS OF SHARES

   5

1.01.    The Committed Series D Convertible Preferred Shares; Definitions

   5

1.02.    The Converted Shares

   5

1.03.    Purchase Price and Initial Closing

   6

1.04.    Additional Closings

   6

1.05.    Use of Proceeds

   6

1.06.    Representations and Warranties by the Purchasers

   6

ARTICLE II CONDITIONS TO PURCHASERS’ OBLIGATION

   7

2.01.    Representations and Warranties

   8

2.02.    Performance

   8

2.03.    Documentation at Closing

   8

2.04.    Qualifications

   9

2.05.    Consents, Waivers, Etc.

   9

2.06.    No Material Adverse Change

   9

2.06.    No Action, Etc. Pending

   9

ARTICLE III REPRESENTATIONS AND WARRANTIES OF THE COMPANY

   9

3.01.    Organization and Standing; Subsidiaries

   10

3.02.    Corporate Action

   10

3.03.    Governmental Approvals

   11

3.04.    Litigation

   11

3.05.    Certain Agreements of Officers and Key Employees

   12

3.06.    Compliance with Other Instruments

   12

3.07.    Financial Information

   13

3.08.    No Insolvency

   13

3.09.    ERISA

   13

3.10.    Transactions with Affiliates

   14

3.11.    Assumptions or Guaranties of Indebtedness of Other Persons

   14

3.12.    Investments in Other Persons

   14

3.13.    Securities Act

   14

3.14.    Brokers or Finders

   14

3.15.    Capitalization; Status of Capital Stock

   14

3.16.    Registration Rights

   15

 

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3.17.    Insurance

   15

3.18.    Books and Records

   15

3.19.    Title to Assets; Patents

   15

3.20.    Computer Programs

   16

3.21.    Intellectual Property Rights

   17

3.22.    Real Property Holding Corporation

   17

3.23.    Taxes

   18

3.24.    Other Agreements

   18

3.25.    Commission Filings

   20

3.26.    Disclosure

   20

3.27.    Listing Compliance

   21

ARTICLE IV – DEFINITIONS AND ACCOUNTING TERMS

   21

4.01.    Certain Defined Terms

   21

4.02.    Accounting Terms

   23

ARTICLE V – MISCELLANEOUS

   24

5.01.    No Waiver; Cumulative Remedies

   24

5.02.    Amendments, Waivers and Consents

   24

5.03.    Addresses for Notices

   24

5.04.    Costs, Expenses and Taxes.

   25

5.05.    Binding Effect; Assignment

   25

5.06.    Prior Agreements

   25

5.07.    Severability

   25

5.08.    Governing Law

   25

5.09.    Headings

   25

5.10.    Counterparts

   26

5.11.    Further Assurances

   26

5.12.    Indemnification

   26

5.13.    Placement Agent

   27

5.14.    Registration of Converted Shares

   27

5.15.    Data Protection Matters

   27

5.16.    Securities Law Disclosure; Publicity

   27

 

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EXHIBITS

 

1.01    List of Purchasers 3.01    Subsidiaries 2.03A    Opinion of Hale and
Dorr LLP 2.03B    Amendment No. 1 to Investor Rights Agreement 2.03C   
Amendment No. 1 to Stockholders Agreement 3.04    Litigation 3.05    Agreements
with Officers and Key Employees 3.07    Financial Information 3.10   
Transactions with Affiliates 3.15    Capitalization 3.16    Registration Rights
3.19    Title to Assets 3.20    Computer Programs 3.23    Unpaid Taxes 3.24   
Agreements 3.27    Listing Compliance

 

 

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Voxware, Inc.

Lawrenceville Office Park

PO Box 5363

Princeton, NJ 08543-5363

 

As of April 30, 2004

 

TO: The Persons listed on Exhibit 1.01 hereto

 

  Re: Series D Convertible Preferred Stock Financing

 

Ladies and Gentlemen:

 

Voxware, Inc. a Delaware corporation (the “Company”), agrees with each of you as
follows:

 

ARTICLE I

 

PURCHASE, SALE AND TERMS OF SHARES

 

1.01 The Series D Convertible Preferred Shares; Definitions. At the time of the
Closing, the Company shall have authorized the issuance and sale of up to
136,730,000 shares (the “Purchased Shares”) of its previously authorized but
unissued shares of Series D Convertible Preferred Stock, par value $0.001 per
share (the “Series D Preferred Stock”), at a purchase price of $0.015 per share
(the “Purchase Price”), to the persons (collectively, the “Purchasers” and,
individually, a “Purchaser”) and in the respective amounts set forth on Exhibit
1.01. The Company also has agreed to issue, pursuant to Section 5.13 hereof,
716,500 shares (the “Placement Agent Shares”) of Series D Preferred Stock to
Nash Fitzwilliams as partial payment of the fees payable to Nash Fitzwilliams as
the placement agent for this transaction. The Purchased Shares and the Placement
Agent Shares are referred to herein collectively as the “Shares”. Capitalized
terms used in this Agreement and not elsewhere defined, are defined in Section
4.01.

 

1.02 The Converted Shares. At the time of the Closing, the Company shall have
authorized and shall have reserved and the Company hereby covenants to continue
to reserve, free of preemptive rights and other preferential rights, a
sufficient number of its previously authorized but unissued shares of Common
Stock to satisfy the rights of conversion of the holders of the Series D
Preferred Stock. Any shares of Common Stock issuable upon conversion of the
Series D Preferred Stock are herein referred to as the “Converted Shares.”

 

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1.03. Purchase Price and Initial Closing. The Company agrees to issue and sell
to the Purchasers and, subject to and in reliance upon the representations,
warranties, covenants, terms and conditions of this Agreement, the Purchasers,
severally but not jointly, agree to purchase that number of the Shares set forth
opposite their respective names in Exhibit 1.01 attached hereto under the
headings “Series D Preferred Shares”. The aggregate dollar purchase price of or
other consideration being given for the Shares being purchased by each Purchaser
at the Closing is set forth opposite such Purchaser’s name in Exhibit 1.01 under
the heading “Aggregate Dollar Purchase Price”. The purchase and sale shall take
place at a closing (the “Closing”) to be held at the offices of Hale and Dorr
LLP, 650 College Road East, Princeton, New Jersey 08540, on such date and at
such time as may be mutually agreed upon.

 

At the Initial Closing, the Company will issue and deliver certificates
evidencing the Shares to be sold at the Initial Closing to each of the
applicable Purchasers (or its nominees against payment of the full purchase
price therefor by (i) wire transfer, (ii) check payable to the order of the
Company.

 

1.04 Additional Closings. Subject to the terms and conditions of this Agreement,
to the extent that Initial Closing is for less than 136,730,000 Shares, the
Company shall have the right, until May 31, 2004, to issue and sell to
additional purchasers (the “Additional Purchasers”), at such time mutually
agreed upon orally or in writing by the Company and the Additional Purchasers
(each of such time and place is designated as an “Additional Closing”), up to an
aggregate amount of Shares equal to 136,730,000 minus the number of Shares sold
at the Initial Closing and any Additional Closing. At each Additional Closing,
the Company will issue and deliver certificates evidencing the Shares to be sold
at such Additional Closing to each of the applicable Purchasers (or its nominees
against payment of the full purchase price therefor by (i) wire transfer, (ii)
check payable to the order of the Company. The issuance, sale and delivery of
any Shares to an Additional Purchaser shall be subject to and conditioned upon
each such Additional Purchaser becoming a party to this Agreement by executing
and delivering a joinder to this Agreement.

 

1.05. Use of Proceeds. The Company covenants that, from and after the date
hereof, it shall use the proceeds of the sale of the Shares for working capital
requirements and general corporate purposes.

 

1.06. Representations and Warranties by the Purchasers. Each of the Purchasers
represents and warrants severally, but not jointly, that: (a) it is an
“accredited investor” within the meaning of Rule 501 under the Securities Act of
1933, as amended (the “Securities Act”); (b) it will acquire the Series D
Preferred Stock to be acquired by it for its own account and that such Series D
Preferred Stock are being and will be acquired by it for the purpose of
investment and not with a view to distribution or resale thereof; (c) the
execution of this Agreement and the consummation of the transactions
contemplated hereby have been duly authorized by all necessary action on the
part of such Purchaser, and this Agreement has been duly executed and delivered,
and constitutes a valid, legal, binding and enforceable agreement of such
Purchaser; (d) it understands that the Series D Preferred Stock have not been
registered under the Securities Act, and that no trading market exists for such
securities; (e) it has reviewed or has had an

 

Series D Convertible Preferred Stock Purchase Agreement  –  Page 2

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opportunity to ask questions of, and to receive answers from, the Company and
its representatives, with respect to the Company and the terms and conditions of
this transaction, and it confirms that, to its knowledge, all information,
documents, records and books pertaining to the Company and the Purchaser’s
investment in the Company requested by the Purchaser have been made available or
delivered to it to the Purchaser’s full satisfaction; provided, however, that
the foregoing does not limit or modify the representations and warranties of the
Company in Article III of this Agreement or the right of such Purchaser to rely
thereon; (f) it has taken no action which would give rise to any claim by any
other person for any brokerage commissions, finders’ fees or the like relating
to this Agreement or the transactions contemplated hereby; (g) it has no claims
against the Company, whether in tort, contract or otherwise; (h) it has had an
opportunity to consult with an attorney of its own choosing prior to signing
this Agreement; and (i) to the extent that the Purchaser is a resident of the
United Kingdom or would otherwise be subject to the FPO, the Purchaser is either
a person of a kind described in Article 19 (Investment Professionals), Article
48 (Certified High Net Worth Individuals), Article 49 (High Net Worth Companies,
Unincorporated Association etc), and/or Article 50 (Sophisticated Investors) of
the FPO, as presently in effect. The acquisition by each Purchaser of the Series
D Preferred Stock acquired by it shall constitute a confirmation of the
representations and warranties made by each such Purchaser as at the date of
such acquisition. Each of the Purchasers further represents that it understands
and agrees that, until registered under the Securities Act, or transferred
pursuant to the provisions of Rule 144 as promulgated by the Commission, all
certificates evidencing any of the Series D Preferred Stock shall bear a legend,
prominently stamped or printed thereon, reading substantially as follows:

 

“THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES
ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THESE SECURITIES
HAVE BEEN ACQUIRED FOR INVESTMENT AND NOT WITH A VIEW TO DISTRIBUTION OR RESALE,
AND MAY NOT BE SOLD, MORTGAGED, PLEDGED, HYPOTHECATED OR OTHERWISE TRANSFERRED
WITHOUT AN EFFECTIVE REGISTRATION STATEMENT FOR SUCH SECURITIES UNDER THE
SECURITIES ACT OF 1933, AS AMENDED, AND APPLICABLE STATE SECURITIES LAWS, OR THE
AVAILABILITY OF AN EXEMPTION FROM THE REGISTRATION PROVISIONS OF THE SECURITIES
ACT OF 1933, AS AMENDED, AND APPLICABLE STATE SECURITIES LAWS.”

 

ARTICLE II

 

CONDITIONS TO PURCHASERS’ OBLIGATION

 

The obligation of each Purchaser to purchase and pay for the Series D Preferred
Stock to be purchased by it at the Closing, as well as the Purchasers’ other
respective obligations under this Agreement, are subject to the fulfillment to
the Purchasers’ satisfaction of each of the following conditions as of the
Closing date:

 

Series D Convertible Preferred Stock Purchase Agreement  –  Page 3

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2.01. Representations and Warranties. Each of the representations and warranties
of the Company set forth in Article III hereof shall be true and correct on the
date of the Closing.

 

2.02. Performance. All covenants, agreements and conditions contained in this
Agreement to be performed or complied with by the Company at or prior to the
Closing shall have been performed or complied with.

 

2.03. Documentation at Closing. The Purchasers shall have received prior to or
at the Closing all of the following documents or instruments, or evidence of
completion thereof, each in form and substance satisfactory to the Purchasers
and their counsel:

 

(a) A copy of the Amended and Restated Certificate of Incorporation of the
Company, as amended, certified by the Secretary of the State of Delaware as of a
date not more than seven (7) days prior to the Closing date, a copy of the
resolutions adopted by the Board of Directors evidencing the approval of this
Agreement, the issuance of the Series D Preferred Stock and the other matters
contemplated hereby, and a copy of the Bylaws of the Company, all of which shall
have been certified by the Secretary of the Company to be true, complete and
correct in every particular, and certified copies of all documents evidencing
other necessary corporate or other action and governmental approvals, if any,
with respect to this Agreement and the Shares.

 

(b) An opinion of Hale and Dorr LLP, counsel to the Company, in the form of
Exhibit 2.03A attached hereto.

 

(c) A certificate of the Secretary of the Company certifying the names of the
officers of the Company authorized to sign this Agreement, the certificates for
the Series D Preferred Stock, and the other documents, instruments or
certificates to be delivered pursuant to this Agreement by the Company or any of
its officers, together with the true signatures of such officers. The Purchasers
may conclusively rely on such certificate until they shall receive a further
certificate of the Secretary or an Assistant Secretary of the Company canceling
or amending the prior certificate and submitting the signatures of the officers
named in such further certificate.

 

(d) A certificate of the President of the Company stating that the
representations and warranties of the Company contained in Article III hereof
and otherwise made by the Company in writing in connection with the transactions
contemplated hereby are true and correct as of the Closing and that all
conditions required to be performed prior to or at the Closing have been
performed as of the Closing.

 

(e) An Amendment No. 1 to the Investor Rights Agreement in the form set forth in
Exhibit 2.03B duly executed and delivered by the parties named therein.

 

(f) An Amendment No. 1 to the Stockholders Agreement in the form set forth in
Exhibit 2.03C duly executed and delivered by the parties named therein.

 

 

Series D Convertible Preferred Stock Purchase Agreement  —  Page 4

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(g) A Certificate of Good Standing for the Company certified by the Secretary of
the State of Delaware as of a date not more than three (3) business days prior
to the Closing date.

 

(h) Payment for the costs, expenses, taxes and filing fees identified in
Sections 5.04 and 5.13.

 

(i) Participation of the Purchasers specified on Exhibit 1.01 hereto in the
Closing on the terms set forth in this Agreement.

 

2.04. Qualifications. As of the Closing, all authorizations, approvals or
permits of or filings with, any governmental authority, including state
securities or “Blue Sky” offices, that are required by law in connection with
the lawful sale and issuance of the Series D Preferred Stock shall have been
duly obtained by the Company and shall be effective as of the Closing, except
for any notice that may be required subsequent to the Closing under applicable
state and/or federal securities laws (which, if required, shall be filed on a
timely basis).

 

2.05. Consents, Waivers, Etc. Prior to the Closing, the Company shall have
obtained all consents or waivers, if any, necessary to execute and deliver this
Agreement and issue the Series D Preferred Stock, and to carry out the
transactions contemplated hereby and thereby, and all such consents and waivers
shall be in full force and effect. All corporate and other action and
governmental filings necessary to effectuate the terms of this Agreement, the
Series D Preferred Stock and other agreements and instruments executed and
delivered by the Company in connection herewith shall have been made or taken,
except for any post-sale filing that may be required under federal or state
securities laws. In addition to the documents set forth above, the Company shall
have provided to the Purchasers any other information or copies of documents
that the Purchasers may reasonably request.

 

2.06 No Material Adverse Changes. The Purchasers who intend to purchase at least
51% of the Purchased Shares shall not have concluded that a material adverse
change in the financial condition, business, operations, affairs or prospects of
the Company has occurred, nor that any fact exists nor has any event or
circumstance occurred which reasonably could give rise to such a material
adverse change.

 

2.07 No Action, Etc. Pending. There shall not be in effect at Closing any
action, order, or other proceeding, preventing, enjoining or otherwise
restraining the transactions contemplated by this Agreement.

 

ARTICLE III

 

REPRESENTATIONS AND WARRANTIES OF THE COMPANY

 

For purposes of this Article III, unless otherwise specified or the context
otherwise requires, the term “Company” shall include the Company and each of its
Subsidiaries. The Company represents and warrants to the Purchasers as follows:

 

Series D Convertible Preferred Stock Purchase Agreement  —  Page 5

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3.01. Organization and Standing; Subsidiaries.

 

(a) The Company is a duly organized and validly existing corporation in good
standing under the laws of the State of Delaware and has all requisite corporate
power and authority for the ownership and operation of its properties and for
the carrying on of its business as now conducted and as now proposed to be
conducted. The Company is duly licensed or qualified and in good standing as a
foreign corporation authorized to do business in all jurisdictions wherein the
character of the property owned or leased, or the nature of the activities
conducted, by it makes such licensing or qualification necessary, except for any
jurisdiction where the failure to be so qualified or licensed would not result
in a Material Adverse Change to the business, operations, affairs or financial
condition of the Company or in its properties or assets taken as a whole.

 

(b) Exhibit 3.01 attached hereto contains a list of all Subsidiaries of the
Company. Except for such Subsidiaries, the Company does not (i) own of record or
beneficially, directly or indirectly, (A) any shares of capital stock or
securities convertible into capital stock of any other corporation or (B) any
participating interest in any partnership, joint venture or other non-corporate
business enterprise, or (C) any assets comprising the business or material
obligations of any other corporation, partnership, joint venture or other
non-corporate business enterprise or (ii) control, directly or indirectly, any
other entity.

 

(c) Each of the Subsidiaries is a corporation duly incorporated, validly
existing and in good standing under the laws of its respective jurisdiction of
incorporation and is duly licensed or qualified to transact business as a
foreign corporation and is in good standing in each jurisdiction in which the
nature of the business transacted by it or the character of the properties owned
or leased by it requires such licensing or qualification, except for any
jurisdiction where the failure to be so qualified or licensed would not result
in a Material Adverse Change to the business, operations, affairs or financial
condition of such Subsidiary or in its properties or assets taken as a whole.
Each of the Subsidiaries has the corporate power and authority to own and hold
its properties and to carry on its business as now conducted and as now proposed
to be conducted. Except as disclosed on Exhibit 3.01, all of the outstanding
shares of capital stock of each of the Subsidiaries are owned beneficially and
of record by the Company, one of its other wholly owned Subsidiaries, or any
combination of the Company and/or one or more of its other wholly owned
Subsidiaries, all as specified in Exhibit 3.01, in each case free and clear of
any liens, charges, restrictions, claims or encumbrances of any nature
whatsoever, except for those disclosed in Exhibit 3.01; and, except as disclosed
in Exhibit 3.01, there are no outstanding subscriptions, warrants, options,
convertible securities, or other rights (contingent or other) pursuant to which
any of the Subsidiaries is or may become obligated to issue any shares of its
capital stock to any Person other than the Company or one of the other
Subsidiaries.

 

3.02. Corporate Action. The Company has all necessary corporate power and has
taken all corporate action required to enter into and perform this Agreement and
any other agreements and instruments contemplated hereby or executed in
connection herewith (collectively, the “Financing Documents”). The Financing
Documents are valid and binding obligations of the

 

Series D Convertible Preferred Stock Purchase Agreement  —  Page 6

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Company, enforceable in accordance with their respective terms, except (a) as
limited by applicable bankruptcy, insolvency, reorganization, moratorium, and
other laws of general application affecting enforcement of creditors’ rights
generally, (b) as limited by laws relating to the availability of specific
performance, injunctive relief, or other equitable remedies, and (c) to the
extent the indemnification provisions contained in any of the Financing
Documents may be limited by applicable federal or state securities laws. The
issuance, sale and delivery of the Series D Preferred Stock in accordance with
this Agreement have been duly authorized by all necessary corporate action on
the part of the Company. The issuance and delivery of the Converted Shares upon
conversion of the Series D Preferred Stock have been duly authorized by all
necessary corporate action on the part of the Company. At the time of the
Closing, sufficient authorized but unissued shares of Common Stock and Series D
Preferred Stock shall have been reserved by appropriate corporate action in
connection with the prospective conversion of the Series D Preferred Stock at
its conversion price. The Series D Preferred Stock, when issued, sold and
delivered in accordance with the terms of this Agreement, will be duly and
validly issued, fully paid and non-assessable, are not subject to preemptive
rights or other preferential rights in any present or future stockholders of the
Company other than as set forth in the Investors Rights Agreement and the
Stockholders Agreement, will not be subject to any Lien, and will not conflict
with any provision of any agreement or instrument to which the Company is a
party or by which it or its property is bound. The Converted Shares upon the
conversion of the Series D Preferred Stock will be duly and validly issued,
fully paid and non-assessable, will not be subject to preemptive rights or other
preferential rights in any present or future stockholders of the Company other
than as set forth in the Investors Rights Agreement and the Stockholders
Agreement, will not be subject to any Lien, and will not conflict with any
provision of any agreement or instrument to which the Company is a party or by
which it or its property is bound.

 

3.03. Governmental Approvals. Except for the filing of any notice subsequent to
the Closing that may be required under applicable state and/or federal
securities laws (which, if required, shall be filed on a timely basis), no
authorization, consent, approval, license, exemption of or filing or
registration with any court or governmental department, commission, board,
bureau, agency or instrumentality, domestic or foreign, is or will be necessary
for the execution and delivery by the Company of this Agreement, for the offer,
issue, sale and delivery of the Series D Preferred Stock for the issue and
delivery of the Converted Shares upon conversion of the Series D Preferred
Stock, or for the performance by the Company of its obligations under this
Agreement.

 

3.04. Litigation. Except as described in Exhibit 3.04, there is no litigation or
governmental proceeding or investigation pending or, to the Company’s knowledge,
threatened against the Company affecting any of its respective material
properties or assets, or against any officer of the Company or Key Employee
relating to any such person’s performance of duties for the Company or relating
to his stock ownership in the Company or otherwise relating to the business of
the Company, nor to the knowledge of the Company has there occurred any event or
does there exist any condition on the basis of which any such material
litigation, proceeding or investigation might properly be instituted. The
Company is not in default with respect to any order, writ, injunction, decree,
ruling or decision of any court, commission, board or other governmental agency.
To the knowledge of the Company, no officer of the Company or Key

 

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Employee is in default with respect to any order, writ, injunction, decree,
ruling or decision of any court, commission, board or other governmental agency
relating to such person’s performance of duties for the Company or relating to
his stock ownership in the Company or otherwise relating to the business of the
Company. Except as described in Exhibit 3.04, there are no actions, suits,
claims, investigations or proceedings pending or, to the knowledge of the
Company, threatened which could reasonably be expected to result, either in any
case or in the aggregate, in any material adverse effect on the business,
operations, affairs or condition (financial or otherwise) of the Company or in
its properties or assets taken as a whole, or which directly or indirectly
challenge the validity of this Agreement, any of the Shares or any action taken
or to be taken pursuant hereto or thereto (each a “Material Adverse Effect”).
The foregoing sentences include, without limiting their generality, actions
pending or, to the knowledge of the Company, threatened involving the prior
employment of any of the Company’s officers or Key Employees or their use in
connection with the Company’s business of any information or techniques
allegedly proprietary to any of their former employers.

 

3.05. Certain Agreements of Officers and Key Employees.

 

(a) Except as listed in Exhibit 3.05, the Company is not a party to or obligated
in connection with its business with respect to (i) outstanding contracts with
employees, agents, consultants, advisers, sales representatives, distributors,
sales agents or dealers or (ii) collective bargaining agreements or contracts
with any labor union or other representative of employees or any employee
benefits provided for by any such agreement.

 

(b) To the knowledge of the Company, no officer or Key Employee of the Company
is in violation of any term of any employment contract, patent disclosure
agreement, proprietary information agreement, noncompetition agreement, or any
other contract or agreement or any restrictive covenant relating to the right of
any such officer or Key Employee to be employed by the Company because of the
nature of the business conducted or now proposed to be conducted by the Company
or relating to the use of trade secrets or proprietary information of others,
and, to the knowledge of the Company, the continued employment of the Company’s
officers and Key Employees does not subject the Company or any Purchaser to any
liability to third parties.

 

(c) To the knowledge of the Company, no officer of the Company nor any Key
Employee of the Company whose termination, either individually or in the
aggregate, would have a Material Adverse Effect, has expressed any present
intention of terminating his employment with the Company.

 

3.06. Compliance with Other Instruments. The Company is in compliance with the
terms and provisions of this Agreement and of its Certificate of Incorporation
and Bylaws, each as amended, and with all material mortgages, indentures,
leases, agreements and other instruments, if any, by which it is bound or to
which it or any of its respective properties or assets are subject. The Company
is in compliance with all material judgments, decrees, governmental orders,
statutes, rules or regulations by which it is bound or to which any of its
properties or assets are subject. Neither the execution and delivery of this
Agreement or the issuance of the

 

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Shares, nor the consummation of any transaction contemplated by this Agreement,
(i) has constituted or resulted in or will constitute or result in a default or
violation of any term or provision of any of the foregoing documents,
instruments, judgments, agreements, decrees, orders, statutes, rules and
regulations, (ii) has resulted in a violation of or will result in a violation
of any currently outstanding redemption rights, pre-emptive rights, rights of
first refusal or co-sale rights applicable to the Company or the capital stock
or other securities of the Company, or (iii) will trigger any currently
outstanding anti-dilution protections with respect to the capital stock or other
securities of the Company.

 

3.07. Financial Information. The audited financial statements of the Company as
of and for the period ended June 30, 2003 and the unaudited financial statements
of the Company as of and for the period ended December 31, 2003, which are
publicly available at www.sec.gov, present fairly the financial position of the
Company as of the dates thereof and the results of operations for the periods
covered thereby (subject, in the case of such unaudited financial statements, to
immaterial year-end audit adjustments) and have been prepared in accordance with
generally accepted accounting principles consistently applied, except for the
absence of footnotes not customarily included in such statements (the “Financial
Statements”). The Company does not know of any material liability, contingent or
otherwise, not adequately reflected in or reserved against in the aforesaid
financial statements or in the notes thereto. Except as set forth in Exhibit
3.07, since December 31, 2003, (i) there has been no Material Adverse Change,
(ii) neither the business, condition, or operations of the Company nor any of
the properties or assets of the Company have been materially adversely affected
as the result of any legislative or regulatory change, any revocation or change
in any franchise, permit, license or right to do business, or any other event or
occurrence, whether or not insured against; and (iii) the Company has not
entered into any material transaction other than in the ordinary course of
business, made any dividend or distribution on its capital stock, or redeemed or
repurchased any of its capital stock other than as contemplated by this
Agreement.

 

3.08. No Insolvency. No insolvency proceeding of any character, including,
without limitation, bankruptcy, receivership, reorganization, composition or
arrangement with creditors, voluntary or involuntary, affecting the Company or
any of its assets or properties, is pending or, to the knowledge of the Company,
threatened. The Company has not taken any action in contemplation of, or that
would constitute the basis for, the institution of any such insolvency
proceedings.

 

3.09. ERISA. The Company has complied in all material respects with all
applicable laws relating to wages, hours and collective bargaining. The Company
has not maintained, sponsored, adopted, made contributions to or obligated
itself to make contributions to or to pay any benefits or grant rights under or
with respect to any “Employee Pension Benefit Plan” as defined in Section 3(2)
of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”),
“Employee Welfare Benefit Plan” (as defined in Section 3(1) of ERISA),
“multi-employer plan” (as defined in Section 3(37) of ERISA), plan of deferred
compensation, medical plan, life insurance plan, long-term disability plan,
dental plan or other plan providing for the welfare of any of the Company’s or
any Affiliate’s employees or former employees or beneficiaries thereof,
personnel policy, excess benefit plan, bonus or incentive plan (including

 

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but not limited to stock options, restricted stock, stock bonus and deferred
bonus plans), salary reduction agreement, change-of-control agreement,
consulting agreement, worker’s compensation law, unemployment compensation law,
social security law or any other benefit program or contract, except as required
by law.

 

3.10. Transactions with Affiliates. Except as set forth on Exhibit 3.10 and
except as contemplated hereby or consented to by the Purchasers in accordance
with this Agreement, there are no loans, leases, royalty agreements or other
continuing transactions between the Company and (a) any officer, employee or
director of the Company, or (b) any Person owning 5% or more of any class of
capital stock of the Company, or (c) any member of the immediate family of such
officer, employee, director or stockholder, or (d) any corporation or other
entity controlled by such officer, employee, director or stockholder or a member
of the immediate family of such officer, employee, director or stockholder.

 

3.11. Assumptions or Guaranties of Indebtedness of Other Persons. Except as
contemplated hereby or consented to by the Purchasers in accordance with this
Agreement, the Company has not assumed, guaranteed, endorsed or otherwise become
directly or contingently liable on (including, without limitation, liability by
way of agreement, contingent or otherwise, to purchase, to provide funds for
payment, to supply funds to or otherwise invest in the debtor or otherwise to
assure the creditor against loss), any Indebtedness of any other Person.

 

3.12. Investments in Other Persons. The Company has not made any loan or advance
to any Person, other than in the normal course of business and on an arm’s
length basis on commercially reasonable terms and as reflected in the Financial
Statements, which, after giving effect to the transactions contemplated hereby,
is outstanding on the date of this Agreement, nor is it committed or obligated
to make any such loan or advance.

 

3.13. Securities Act. The Company has complied and will comply with all
applicable federal and state securities laws in connection with the offer,
issuance and sale of the Shares. Neither the Company nor anyone acting on its
behalf has or will sell, offer to sell or solicit offers to buy the Shares, or
solicit offers with respect thereto from, or enter into any preliminary
conversations or negotiations relating thereto with, any Person, so as to bring
the issuance and sale of the Shares under the registration provisions of the
Securities Act and applicable state securities laws.

 

3.14. Brokers or Finders. Except as set forth in Section 5.13 hereto, no Person
has or will have, as a result of the transactions contemplated by this
Agreement, any right, interest or valid claim against or upon the Company for
any commission, fee or other compensation as a finder or broker because of any
act or omission by the Company or any of their respective agents.

 

3.15. Capitalization; Status of Capital Stock. The Company has a total
authorized capitalization consisting of (i) 1,035,000,000 shares of Common
Stock, par value $.001 per share, of which 41,754,113 shares are issued and
outstanding on the date hereof; and (ii) 865,000,000 shares of preferred stock,
par value $.001 per share, (a) 2,100 of which shares are designated as Series B
Preferred Stock, none of which are issued and outstanding on the date

 

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hereof, and (b) 816,949,489 of which shares are designated as Series D Preferred
Stock, of which 522,278,973 shares are issued and outstanding on the date
hereof, without giving effect to the transactions contemplated hereby. As of the
Closing, the Company shall have 816, 949,489 shares of its preferred stock which
shall have been designated as Series D Preferred Stock. A complete list of the
capital stock of the Company and the names in which such capital stock is
currently registered on the stock transfer books of the Company is set forth in
Exhibit 3.15 hereto. All the outstanding shares of capital stock of the Company
have been duly authorized, and are validly issued, fully paid and
non-assessable. The Series D Preferred Stock, when issued and delivered in
accordance with the terms hereof and after payment of the purchase price or
provision of such other applicable consideration therefor, will be duly
authorized, validly issued, fully paid and non-assessable. The Converted Shares,
when issued and delivered upon conversion of the Series D Preferred Stock, will
be duly authorized, validly issued, fully-paid and non-assessable. Except as
otherwise set forth in Exhibit 3.15, no preemptive, conversion or other rights,
options, warrants, subscriptions or purchase rights of any nature to acquire
from the Company shares of capital stock or other securities are authorized,
issued or outstanding, nor is the Company obligated in any other manner to issue
shares of its capital stock or other securities except as contemplated by this
Agreement. Except as set forth in Exhibit 3.15, there are no restrictions on the
transfer of shares of capital stock of the Company other than those imposed by
relevant federal and state securities laws and as otherwise contemplated by this
Agreement, the Stockholders Agreement and the Investor Rights Agreement. Other
than as provided in this Section, there are no agreements, understandings,
trusts or other collaborative arrangements or understandings concerning the
voting of the capital stock of the Company. Subject to applicable
representations and warranties by purchasers of the Company’s capital stock, the
offer and sale of all capital stock and other securities of the Company issued
before the Closing complied with or were exempt from all applicable federal and
state securities laws and no stockholder has a right of rescission with respect
thereto.

 

3.16. Registration Rights. Except for the rights granted to the Purchasers
pursuant to the Investor Rights Agreement or as set forth in Exhibit 3.16, no
Person has demand or other rights to cause the Company to file any registration
statement under the Securities Act relating to any securities of the Company or
any right to participate in any such registration statement.

 

3.17. Insurance. The Company carries insurance in reasonably adequate amounts
covering its properties and businesses customary for the type and scope of its
properties and businesses.

 

3.18. Books and Records. The books of account, ledgers, order books, records and
documents of the Company accurately and completely reflect all material
information relating to the business of the Company, the location and collection
of its assets, and the nature of all transactions giving rise to the obligations
or accounts receivable of the Company.

 

3.19. Title to Assets; Patents.

 

(a) The Company has good and marketable title in fee to such of its fixed
assets, if any, as are real property, and good and marketable title to all of
its other assets and properties,

 

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free of any mortgages, pledges, charges, Liens, security interests or other
encumbrances of any kind, except for those disclosed on Exhibit 3.19. The
Company enjoys peaceful and undisturbed possession under all leases under which
it is operating, and all said leases are valid and subsisting and in full force
and effect.

 

(b) Set forth in Exhibit 3.19 is a list and brief description of all patents,
patent applications, trademarks, trademark applications, service marks, service
mark applications, trade names and registered copyrights, and applications for
such that are in the process of being prepared, owned by or registered in the
name of the Company, or of which the Company is a licensor or licensee or in
which the Company has any right, and in each case a brief description of the
nature of such right. Except as set forth in Exhibit 3.19, there is no adverse
claim that would interfere with the Company’s right to use the patents, patent
rights, permits, licenses, trade secrets, trademarks, trademark rights, trade
names or trade name rights or franchises, copyrights, inventions, software and
intellectual property rights being used in the Company’s business as now
operated and as now proposed to be operated; the conduct of the Company’s
business as now operated and as now proposed to be operated does not conflict
and will not conflict with valid patents, patent rights, permits, licenses,
trade secrets, trademarks, trademark rights, tradenames or tradename rights or
franchises, copyrights, inventions, and intellectual property rights of any
other Person. No product or process presently used or now proposed to be
manufactured, marketed, offered, sold or used by the Company violates (or will
violate based on any now proposed use) any license or infringe on any
intellectual property rights of any other Person; and, except as set forth in
Exhibit 3.19, neither the Company’s property rights nor the present operation or
now proposed operation of the Company’s business conflicts with the rights of
others. Except as set forth in Exhibit 3.19, no claim is pending or, to the
Company’s knowledge, threatened to the effect that any such intellectual
property owned or licensed by the Company, or which the Company otherwise has
the right to use, is invalid or unenforceable by the Company, and the Company
has no reason to believe that any patents or intellectual property rights owned
or used by the Company may be invalid. The Company has no obligation to
compensate any Person for the use of any such patents or rights and the Company
has not granted any Person any license or other rights to use in any manner any
of the patents or rights of the Company, whether requiring the payment of
royalties or not. The Company has not entered into any agreement to indemnify
any other Person against any charge of infringement of any patent, trademark,
trade name, service mark or copyright.

 

3.20. Computer Programs.

 

(a) Set forth in Exhibit 3.20 is a list and brief description of the Computer
Programs (other than off-the-shelf Computer Programs) owned, licensed or
otherwise used by the Company in connection with the operation of its business
as currently conducted or now proposed to be conducted (such Computer Programs
being referred to herein as the “Company Software”), identifying with respect to
each such Computer Program whether it is owned, licensed or otherwise used by
the Company. Exhibit 3.20 identifies all material agreements relating to the
Company Software (the “Software Contracts”) and further classifies each such
Software Contract under one of the following categories: (A) license to use
third party software; (B) development contract, work-for-hire agreement, or
consulting agreement; (C) distributor, dealer

 

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or value added reseller agreement; (D) license or sublicense to a third party
(including agreements with end-users); (E) maintenance, support or enhancement
agreement; or (F) other.

 

(b) Except as disclosed in Exhibit 3.20, the Computer Programs included in the
Company Software are (i) owned by the Company, (ii) currently in the public
domain or otherwise available to the Company without the approval or consent of
any third party, or (iii) licensed or otherwise used by the Company pursuant to
the terms of valid, binding written agreements.

 

(c) The Company Software owned, designed or developed by the Company or any of
its employees, consultants or agents conforms in all material respects to the
technical specifications for the design, performance, operation, test, support
and maintenance of the Company’s Software, and all other documentation relating
to such technical specifications. No portion of the Company Software sold or
licensed by the Company directly or indirectly to end users contained, on the
date of shipment by the Company, no portion of the Company Software currently
for sale or license directly or indirectly to end users contains, and, to the
knowledge of the Company, no portion of any other Company Software contains any
software routines or hardware components designed to permit unauthorized access;
to disable or erase software, hardware or data; or to perform any other such
actions.

 

(d) All personnel, including employees, agents, consultants, and contractors,
who have contributed to or participated in the conception and development of any
of the Company Software either (i) have been party to a “work-for-hire”
arrangement or agreement with the Company, whether in accordance with applicable
federal and state law, domestic or foreign, or otherwise, that has accorded the
Company full, effective, exclusive and original ownership of all tangible and
intangible property thereby arising, or (ii) have executed appropriate
instruments of assignment in favor of the Company as assignee that have conveyed
to the Company full, effective and exclusive ownership of all tangible and
intangible property thereby arising.

 

3.21. Intellectual Property Rights. The Company owns or possesses or otherwise
has the legally enforceable perpetual right to use, and has the right to bring
actions for infringement of, all Intellectual Property Rights necessary or
required for the conduct of its business as currently conducted or now proposed
to be conducted, including all Intellectual Property Rights pertaining to the
Company Software.

 

3.22. Real Property Holding Corporation. Since its date of incorporation, the
Company has not been, and as of the date of the Closing shall not be, a “United
States real property holding corporation,” as defined in Section 897(c)(2) of
the Internal Revenue Code of 1986 (the “Code”), and in Section 1.897-2(b) of the
Treasury Regulations issued thereunder. The Company has no current plans or
intentions which would cause the Company to become a “United States real
property holding corporation,” and the Company has filed with the IRS all
statements, if any, with its United States income tax returns which are required
under Section 1.897-2(h) of the Treasury Regulations.

 

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3.23. Taxes. The Company has filed, or obtained appropriate extensions for, all
tax returns, federal, state, county and local, domestic and foreign, required to
be filed by it, and, except as set forth on Exhibit 3.23, the Company has paid
all taxes shown to be due by such returns as well as all other taxes,
assessments and governmental charges which have become due or payable, including
without limitation all taxes which the Company is obligated to withhold from
amounts owing to employees, creditors and third parties. The Company has
established adequate reserves for all taxes accrued but not yet payable to the
extent required by generally accepted accounting principles. All material tax
elections of any type which the Company has made as of the date hereof are set
forth in the financial statements referred to in Section 3.07. Except as set
forth on Exhibit 3.23, no deficiency assessment with respect to or, proposed
adjustment of the Company’s federal, state, county or local taxes, domestic and
foreign, is pending or, to the knowledge of the Company, threatened. There is no
tax lien (other than for current taxes not yet due and payable), whether imposed
by any federal, state, county or local taxing authority, domestic or foreign,
outstanding against the assets, properties or business of the Company. Neither
the Company nor any of its present or former stockholders has ever filed an
election pursuant to Section 1362 of the Internal Revenue Code of 1986 (the
“Code”), that the Company be taxed as an S corporation.

 

3.24. Other Agreements. Except for the Software Contracts identified in Exhibit
3.20 or as otherwise set forth in the attached Exhibit 3.24, the Company is not
a party to or otherwise bound by any written or oral:

 

(a) distributor, dealer or manufacturer’s representative contract or agreement
which is not terminable on less than ninety (90) days’ notice without cost or
other liability to the Company (except for contracts which, in the aggregate,
are not material to the business of the Company);

 

(b) sales agreement which entitles any customer to a rebate or right of set-off,
to return any product to the Company after acceptance thereof or to delay the
acceptance thereof, or which varies in any material respect from the Company’s
standard form contracts (except for contracts which, in the aggregate, are not
material to the business of the Company);

 

(c) agreement with any labor union in the United States (and, to the Company’s
knowledge, no organizational effort is being made with respect to any of its
employees);

 

(d) agreement with any supplier containing any provision permitting any party
other than the Company to renegotiate the price or other terms, or containing
any pay-back or other similar provision, upon the occurrence of a failure by the
Company to meet its obligations under the agreement when due or the occurrence
of any other event (except for contracts which, in the aggregate, are not
material to the business of the Company);

 

(e) agreement for the future purchase of fixed assets or for the future purchase
of materials, supplies or equipment in excess of its normal operating
requirements;

 

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(f) agreement for the employment of any officer, individual, employee or other
Person (whether of a legally binding nature or in the nature of informal
understandings) on a full-time or consulting basis which is not terminable on
notice without cost or other liability to the Company, except accrued vacation
pay (an “Employment Agreement”);

 

(g) bonus, pension, profit-sharing, retirement, hospitalization, insurance,
stock purchase, stock option or similar plan, agreement or understanding
pursuant to which benefits are provided to any employee of the Company (other
than group insurance plans applicable to employees generally or as otherwise
required by law);

 

(h) agreement or indenture relating to the borrowing of money or to the
mortgaging or pledging of, or otherwise placing a lien or security interest on,
any material asset of the Company;

 

(i) agreement, or group of related agreements with the same party or any group
of affiliated parties, under which the Company has advanced or agreed to advance
money, has agreed to lease any real property as lessee or lessor, or has agreed
to lease any personal property as lessee or lessor if such lease for personal
property was not entered into in the ordinary course of business;

 

(j) agreement or obligation (contingent or otherwise) to issue, sell or
otherwise distribute or to repurchase or otherwise acquire or retire any shares
of its capital stock or any of its other equity securities (other than in
connection with the transactions contemplated by this Agreement);

 

(k) assignment, license or other agreement with respect to any form of
intangible property, which assignment, license or other agreement was entered
into other than in the ordinary course of business;

 

(l) agreement under which it has granted any person registration rights with
respect to its capital stock;

 

(m) agreement under which it has limited or restricted its right to compete with
any Person in any respect;

 

(n) except as set forth above, any other agreement or group of related contracts
with the same party involving more than $250,000 or continuing over a period of
more than six months from the date or dates thereof (including renewals or
extensions of options with another party), which agreement or group of
agreements is not terminable by the Company without penalty upon notice of sixty
(60) days or less, but excluding any agreement or group of agreements with a
customer of the Company for the sale, lease or rental of the Company’s products
or services if such agreement or group of agreements was entered into by the
Company in the ordinary course of business; or

 

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(o) other contract, instrument, commitment, plan or arrangement, a copy of which
would be required to be filed with the Commission as an exhibit to a
registration statement on Form S-1 if the Company were registering securities
under the Securities Act.

 

Except as set forth on Exhibit 3.24, the Company and, to the Company’s
knowledge, each other party thereto have in all material respects performed all
the actions required to be performed by them to date, have received no notice of
default and are not in material default under any lease, agreement or contract
now in effect to which the Company is a party or by which it or its property may
be bound. The Company has no present expectation or intention of not fully
performing all its respective material obligations under each such lease,
contract or other agreement, and the Company has no knowledge of any material
breach or anticipated breach by the other party to any contract or commitment to
which the Company is a party. The Company is in compliance with all of the terms
and provisions of its Certificate of Incorporation and Bylaws, each as amended.

 

3.25. Commission Filings. The Company has filed all forms, reports and documents
required to be filed by Company with the Commission since the effective date of
the registration statement for the Company’s initial public offering and has
made available to the Purchasers such forms, reports and documents in the form
filed with the Commission as requested by the Purchasers. All such required
forms, reports and documents (including those that the Company may file
subsequent to the date hereof) are referred to herein as the “Company Commission
Reports.” As of their respective dates, the Company Commission Reports (i) were
prepared in accordance with the requirements of the Securities Act, or the
Securities Exchange Act of 1934, as amended (the “Exchange Act”), as the case
may be, and the rules and regulations of the Commission thereunder applicable to
such Company Commission Reports 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, except to the extent corrected prior to
the date of this Agreement by a subsequently filed Company Commission Report.
None of the Company’s subsidiaries is required to file any forms, reports or
other documents with the Commission.

 

3.26. Disclosure. Neither this Agreement nor any other agreement, document,
certificate or written statement furnished to the Purchasers or their special
counsel by or on behalf of the Company in connection with the transactions
contemplated hereby contains any untrue statement of a material fact or omits to
state a material fact necessary in order to make the statements contained herein
or therein not misleading. There is no fact within the knowledge of the Company
which has not been disclosed herein or in writing to the Purchasers and which
would have a Material Adverse Effect. Without limiting the generality of the
foregoing, neither the Company nor any of its Subsidiaries has any knowledge
that there exists, or there is pending or planned, any statute, rule, law,
regulation, standard or code which would have a Material Adverse Effect.

 

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3.27 Listing Compliance. Except as disclosed in Exhibit 3.27, the Company’s
shares of Common Stock are listed for trading on the Over-the-Counter Bulletin
Board (the “Market”). The Company is currently in material compliance with the
listing and maintenance requirements for continued listing of the shares of
Common Stock on the Market.

 

ARTICLE IV

 

DEFINITIONS AND ACCOUNTING TERMS

 

4.01. Certain Defined Terms. As used in this Agreement, the following terms
shall have the following meanings (such meanings to be equally applicable to
both the singular and plural forms of the terms defined):

 

“Affiliate” means any Person who, directly or indirectly, controls, is
controlled by or is under common control with any other Person.

 

“Agreement” means this Series D Convertible Preferred Stock Purchase Agreement
as from time to time amended and in effect between the parties, including all
Exhibits hereto.

 

“Board of Directors” means the board of directors of the Company as constituted
from time to time.

 

“Commission” means the Securities and Exchange Commission, or any other federal
agency at the time administering the Securities Act.

 

“Common Stock” includes (a) the Company’s Common Stock, $.001 par value, as
authorized on the date of this Agreement, (b) any other capital stock of any
class or classes (however designated) of the Company, authorized on or after the
date hereof, the holders of which shall have the right, without limitation as to
amount, either to all or to a share of the balance of current dividends and
liquidating dividends after the payment of dividends and distributions on any
shares entitled to preference, and the holders of which shall ordinarily, in the
absence of contingencies or in the absence of any provision to the contrary in
the Amended and Restated Certificate of Incorporation, be entitled to vote for
the election of a majority of directors of the Company (even though the right so
to vote has been suspended by the happening of such a contingency or provision),
and (c) any other securities into which or for which any of the securities
described in (a) or (b) may be converted or exchanged pursuant to a plan of
recapitalization, reorganization, merger, sale of assets or otherwise.

 

“Company” means and shall include, unless otherwise specified or the context
otherwise requires, Voxware, Inc., a Delaware corporation, and each of its
predecessors, successors and assigns.

 

“Computer Programs” means (i) any and all computer programs (consisting of sets
of statements or instructions to be used directly or indirectly in a computer in
order to bring about a certain result), and (ii) all associated data and
compilations of data, regardless of their form or

 

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embodiment. “Computer Programs” shall include, without limitation, all source
code, object code and natural language code therefor, all versions thereof, all
screen displays and designs thereof, all component modules, all descriptions,
flow-charts and other work product used to design, plan, organize and develop
any of the foregoing, and all documentation, including without limitation user
manuals and training materials, relating to any of the foregoing.

 

“Consolidated” and “consolidating” when used with reference to any term defined
herein mean that term as applied to the accounts of the Company and its
Subsidiaries consolidated in accordance with generally accepted accounting
principles.

 

“ERISA” means the Employee Retirement Income Security Act of 1974, as amended.

 

“FPO” means Financial Services and Markets Act 2000 (Financial Promotion) Order
2001 (SI2001/1335), as amended.

 

“Indebtedness” means all obligations, contingent and otherwise, which should, in
accordance with generally accepted accounting principles, be classified upon the
obligor’s balance sheet (or the notes thereto) as liabilities, but in any event
including liabilities secured by any mortgage on property owned or acquired
subject to such mortgage, whether or not the liability secured thereby shall
have been assumed, and also including (i) all guaranties, endorsements and other
contingent obligations, in respect of Indebtedness of others, whether or not the
same are or should be so reflected in said balance sheet (or the notes thereto),
except guaranties by endorsement of negotiable instruments for deposit or
collection or similar transactions in the ordinary course of business and (ii)
the present value of any lease payments due under leases required to be
capitalized in accordance with applicable Statements of Financial Accounting
Standards, determined by discounting all such payments at the interest rate
determined in accordance with applicable Statements of Financial Accounting
Standards.

 

“Intellectual Property Rights” means all of the following: (i) patents, patent
applications, patent disclosures and all related continuation,
continuation-in-part, divisional, reissue, re-examination, utility, model,
certificate of invention and design patents, patent applications, registrations
and applications for registrations, (ii) trademarks, service marks, trade dress,
logos, tradenames, service names and corporate names and registrations and
applications for registration thereof, (iii) copyrights and registrations and
applications for registration thereof, (iv) mask works and registrations and
applications for registration thereof, (v) trade secrets and confidential
business information, whether patentable or nonpatentable and whether or not
reduced to practice, know-how, manufacturing and product processes and
techniques, research and development information, copyrightable works,
financial, marketing and business data, pricing and cost information, business
and marketing plans and customer and supplier lists and information, (vi)
Computer Programs, (vii) other proprietary rights relating to any of the
foregoing (including without limitation associated goodwill and remedies against
infringements thereof and rights of protection of an interest therein under the
laws of all jurisdictions) and (viii) copies and tangible embodiments thereof.

 

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“Investor Rights Agreement” means that certain Investor Rights Agreement dated
as of June 27, 2003, as amended by Amendment No. 1 to the Investor Rights
Agreement dated the date hereof.

 

“Key Employee” means and includes the president, chief executive officer, chief
financial officer, chief operating officer, chief technology officer, vice
president of operations, finance, research, development, sales or marketing, or
any other individual who performs a significant role in the operations of the
Company or a Subsidiary as may be reasonably designated by the Board of
Directors.

 

“Lien” means, any mortgage, pledge, assessment, securities interest,
encumbrance, lien, lease, levy, claim or charge of any kind, including, without
limitation, any conditional sale or other title retention agreement, any lease
in the nature thereof and the filing of or agreement to give any financing
statement under the Uniform Commercial Code of any jurisdiction and including
any lien or charge arising by statute or other law.

 

“Material Adverse Change” means a material adverse change in the business,
operations, affairs, or condition (financial or otherwise) of the Company and
its Subsidiaries, as a whole.

 

“Nash Fitzwilliams” means the entity by the name of Nash Fitzwilliams, Ltd.,
which has its principal place of business at 7 St James’s St., London, England
SW1A 1EE, and its Affiliates.

 

“Person” means an individual, corporation, partnership, joint venture, trust, or
unincorporated organization, or a government or any agency or political
subdivision thereof.

 

“Purchaser” and “Purchasers” has the meaning attributable to those words in
Section 1.01 of this Agreement and shall include the Purchasers and also any
other valid holder of any of the Series D Preferred Stock and any Converted
Shares issued or issuable upon conversion of such Series D Preferred Stock.

 

“Series B Preferred Stock” means the Series B Convertible Preferred Stock of the
Company, par value $.001 per share.

 

“Stockholders Agreement” means that certain Stockholders Agreement dated as of
June 27, 2003, as amended by Amendment No. 1 to the Stockholders Agreement dated
the date hereof.

 

“Subsidiary” or “Subsidiaries” means any corporation or trust of which the
Company and/or any of its other Subsidiaries directly or indirectly owns at the
time outstanding shares of every class of such corporation or trust other than
directors’ qualifying shares comprising at least fifty percent (50%) of the
voting power of such corporation or trust.

 

4.02. Accounting Terms. All accounting terms not specifically defined herein
shall be construed in accordance with generally accepted accounting principles
consistently applied, and

 

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all financial data submitted pursuant to this Agreement shall be prepared in
accordance with such principles.

 

ARTICLE V

MISCELLANEOUS

 

5.01. No Waiver; Cumulative Remedies. No failure or delay on the part of any
party to this Agreement in exercising any right, power or remedy hereunder shall
operate as a waiver thereof; nor shall any single or partial exercise of any
such right, power or remedy preclude any other or further exercise thereof or
the exercise of any other right, power or remedy hereunder. The remedies herein
provided are cumulative and not exclusive of any remedies provided by law.

 

5.02. Amendments, Waivers and Consents. Except as otherwise provided in this
Agreement, changes in or additions to this Agreement may be made, and compliance
with any covenant or provision set forth herein may be omitted or waived, if the
Company (i) shall obtain consent thereto in writing from the holder or holders
of at least a majority in interest of the Purchased Shares, and (ii) shall
deliver copies of such consent in writing to any holders of any Purchased Shares
who did not execute such consent. Any waiver or consent may be given subject to
satisfaction of conditions stated therein and any waiver or consent shall be
effective only in the specific instance and for the specific purpose for which
given. Notwithstanding anything to the contrary contained herein, any amendment
which (i) increases any Purchaser’s obligations hereunder, or (ii) grants to any
one or more Purchasers any rights more favorable than any rights granted to all
other Purchasers hereunder, must be approved by a particular Purchaser so as to
be effective against such Purchaser.

 

5.03. Addresses for Notices. All notices, requests, demands and other
communications provided for hereunder shall be in writing (including facsimile
communication) and mailed, faxed or delivered to each applicable party at the
address set forth in Exhibit 1.01 hereto or at such other address as to which
such party may inform the other parties in writing in compliance with the terms
of this Section.

 

If to any other holder of the Shares: at such holder’s address for notice as set
forth in the register maintained by the Company, or, as to each of the
foregoing, at the addresses set forth on Exhibit 1.01 hereto or at such other
address as shall be designated by such Person in a written notice to the other
parties complying as to delivery with the terms of this Section.

 

If to the Company: at the address set forth on page 1 hereof, or at such other
address as shall be designated by the Company in a written notice to the other
parties complying as to delivery with the terms of this Section.

 

All such notices, requests, demands and other communications shall, when mailed
(which mailing must be accomplished by first class mail, postage prepaid;
express overnight courier service; or registered mail, return receipt requested)
or transmitted by facsimile, be effective three days after deposited in the
mails or upon transmission by facsimile, respectively, addressed as aforesaid,
unless otherwise provided herein.

 

Series D Convertible Preferred Stock Purchase Agreement  —  Page 20

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5.04. Costs, Expenses and Taxes. The Company agrees to pay in connection with
the preparation, execution and delivery of this Agreement and the issuance of
the Shares, up to $11,000 (plus VAT, if applicable) of the reasonable fees and
expenses of Landwell, counsel for Nash Fitzwilliams, and due diligence fees and
out-of-pocket expenses of Nash Fitzwilliams with respect thereto as well as the
reasonable fees and out-of-pocket expenses of legal counsel, independent public
accountants and other outside experts reasonably retained by the Purchasers in
connection with the amendment or enforcement of this Agreement. In addition, the
Company shall pay any and all stamp and other taxes payable or determined to be
payable in connection with the execution and delivery of this Agreement, the
issuance of the Shares and the other instruments and documents to be delivered
hereunder or thereunder, and agrees to save the Purchasers harmless from and
against any and all liabilities with respect to or resulting from any delay in
paying or omission to pay such taxes.

 

5.05. Binding Effect; Assignment. This Agreement shall be binding upon and inure
to the benefit of the Company and the Purchasers and their respective heirs,
successors and valid assigns, except that the Company shall not have the right
to delegate any of its respective obligations hereunder or to assign its
respective rights hereunder or any interest herein without the prior written
consent of the holders of at least a majority in interest of the Shares.

 

5.06. Prior Agreements. This Agreement constitutes the entire agreement between
the parties and supersedes any prior understandings or agreements concerning the
purchase and sale of the Shares.

 

5.07. Severability. The provisions of this Agreement and the terms of the Series
D Preferred Stock are severable and, in the event that any court of competent
jurisdiction shall determine that any one or more of the provisions or part of a
provision contained in this Agreement or the Series D Preferred Stock shall, for
any reason, be held to be invalid, illegal or unenforceable in any respect, such
invalidity, illegality or unenforceability shall not affect any other provision
or part of a provision of this Agreement or the terms of the Series D Preferred
Stock; but this Agreement and the terms of the Series D Preferred Stock shall be
reformed and construed as if such invalid or illegal or unenforceable provision,
or part of a provision, had never been contained herein, and such provisions or
part reformed so that it would be valid, legal and enforceable to the maximum
extent possible.

 

5.08. Governing Law. This Agreement shall be construed and enforced in
accordance with and governed by the laws of the General Corporation Law of the
State of Delaware as to matters within the scope thereof, and as to all other
matters shall be construed and enforced in accordance with and governed by the
internal laws of the State of New Jersey, without regard to its principles of
conflicts of laws.

 

5.09. Headings. Article, Section and subsection headings in this Agreement are
included herein for convenience of reference only and shall not constitute a
part of this Agreement for any other purpose.

 

Series D Convertible Preferred Stock Purchase Agreement  —  Page 21

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5.10. Counterparts. This Agreement may be executed in any number of
counterparts, all of which taken together shall constitute one and the same
instrument, and any of the parties hereto may execute this Agreement by signing
any such counterpart.

 

5.11. Further Assurances. From and after the date of this Agreement, upon the
request of any Purchaser or the Company, the Company and the Purchasers shall
execute and deliver such instruments, documents and other writings as may be
reasonably necessary or desirable to confirm and carry out and to effectuate
fully the intent and purposes of this Agreement and the Shares.

 

5.12 Indemnification.

 

(a) The Company shall, with respect to the representations, warranties and
agreements made by it herein, indemnify, pay, defend and hold the Purchasers and
each of the Purchasers’ officers, directors, employees and agents and their
respective Affiliates (the “Indemnitees”) harmless against any and all
liabilities, obligations, losses, damages, penalties, actions, judgments, suits,
claims, costs, expenses and disbursements of any kind or nature whatsoever
(“Damages”), including, without limitation, the fees and disbursements of
counsel for such Indemnitees in connection with any investigative,
administrative or judicial proceeding, whether or not such Indemnitees shall be
designated a party thereto, which may be (i) imposed on such Indemnitee, (ii)
incurred by such Indemnitee, or (iii) asserted against such Indemnitee by a
third party, as a result of the misrepresentation, violation or breach of any
representation, warranty or covenant of the Company under this Agreement, the
Investor Rights Agreement, or otherwise asserted against the Purchasers by a
third party based on the transactions and other actions contemplated by the
Financing Documents, provided, however, that the Company will not be liable in
any such case if and to the extent that such Damages arise out of or are based
upon an untrue statement or alleged untrue statement or omission by the Company
or alleged omission by the Company that was made in conformity with information
furnished by such Indemnitee in writing. Without limiting the generality of the
foregoing, the Purchasers shall be deemed to have suffered liability, loss or
damage as a result of the untruth, inaccuracy or breach of any such
representations or warranties if such liability, loss or damage shall be
suffered by the Company as a result of, or in connection with, such untruth,
inaccuracy or breach of any facts or circumstances constituting such untruth,
inaccuracy or breach.

 

(b) The representations and warranties of the Company set forth in this
Agreement and the indemnification obligations set forth in Section 5.12(a) of
this Agreement shall survive until the expiration of eighteen (18) months
following the Closing and be of no further force or effect as of such date,
except that the representations and warranties set forth in Sections 3.02, 3.03
and 3.15, subparagraphs 3.19(b) and 3.20(d) and Section 3.21 shall survive
forever and shall not terminate, the representations and warranties set forth in
Section 3.20 (other than subparagraph 3.20(d)) shall survive until the
expiration of three (3) years following such Closing and the representations and
warranties set forth in Section 3.23 shall survive such Closing for the
applicable statutory period plus three (3) months.

 

Series D Convertible Preferred Stock Purchase Agreement  —   Page 22

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(c) Any payment owing to the Purchasers from the Company, which obligation
results from a claim for indemnification pursuant to the provisions of Section
5.12(a) above, may, at the option of the Purchaser or Purchasers making such
claim, be satisfied by payment to such Purchaser or Purchasers of monetary
damages or the issuance to such Purchaser or Purchasers of additional Series D
Preferred Stock calculated by dividing the aggregate amount of such obligation
by purchase price of the Series D Preferred Stock per share.

 

5.13 Placement Agent. The Company has retained the services of Nash Fitzwilliams
to assist it in the placement of the Series D Preferred Stock. In consideration
of such services and in connection with and upon the Closing, the Company has
agreed to (i) pay Nash Fitzwilliams a cash fee of $21,489 (plus VAT, if
applicable) and (ii) issue to Nash Fitzwilliams 716,500 shares of Series D
Preferred Stock.

 

5.14 Registration of Converted Shares. The Converted Shares shall be registered
under the Securities Act pursuant to the Registration Statement on Form S-2
filed by the Company with the Commission on November 14, 2003 and shall
otherwise have the rights and benefits set forth in the Investor Rights
Agreement.

 

5.15 Data Protection Matters. The Company will hold and use such of each
Purchaser’s personal information as is necessary and adequate in connection with
the purchase of Series D Preferred Stock by the Purchaser and the performance of
this Agreement, the Investor Rights Agreement and the transactions contemplated
hereby and thereby. Each Purchaser acknowledges that its personal data which is
collected and held by Nash Fitzwilliams will be transferred to the Company by
Nash Fitzwilliams on behalf of the Company for these purposes. Such personal
data will include Purchaser’s name, address, phone number and facsimile number.
Each Purchaser acknowledges that the Company is established in the United
States, and as such, its personal data will be transferred outside of the
European Economic Area (“EEA”), to a country whose laws may not be deemed to
provide an adequate level of protection for such personal data. The Company will
take appropriate actions to ensure that personal data is processed fairly and
lawfully, and otherwise in accordance with the principles of the EC Directive
95/46 on the protection of individuals with regard to the processing of personal
data.

 

5.16 Securities Law Disclosure; Publicity. The Company shall, (a) at or prior to
8:30 a.m., Eastern Standard Time, on the first day following the Closing Date on
which trading occurs on the Market (a “trading day”), issue a press release
reasonably acceptable to Purchasers, disclosing the transactions contemplated
hereby, and (b) on or before the second trading day following the Closing file a
Current Report on Form 8-K with the SEC (the “8-K Filing”) describing the
transactions contemplated hereby and including this Agreement as an exhibit
thereto, in the form required by the Exchange Act. Notwithstanding the
foregoing, the Company shall not publicly disclose the name of any Purchaser, or
include the name of any Purchaser in any filing with the SEC or the Market or
any other securities regulatory organization, without the prior written consent
of such Purchaser, except to the extent such disclosure is required by law or by
SEC or Market regulations. It is understood and agreed by the Purchasers that
this Agreement, including the names of the Purchasers, will be filed as an
exhibit to the 8-K Filing

 

Series D Convertible Preferred Stock Purchase Agreement  —  Page 23

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and that the names of the Purchasers will appear in any registration statement
filed by the Company covering the Converted

 

[REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK]

 

 

Series D Convertible Preferred Stock Purchase Agreement  —  Page 24

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Series D Convertible Preferred Stock Purchase Agreement

 

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed
as an instrument under seal as of the date first above written.

 

**********

 

THE COMPANY:

 

VOXWARE, INC.

     

PURCHASER:

 

EDISON VENTURE FUND V, L.P.

By:  

/s/    Allen M. Adler

     

By:

 

 

EDISON PARTNERS V, L.P.,

    its General Partner

   

--------------------------------------------------------------------------------

               

Name: Allen M. Adler

Title: Interim CFO

     

 

By:

 

 

/s/    Joseph A. Allegra

               

--------------------------------------------------------------------------------

Address:

             

Name: Joseph A. Allegra

Title: General Partner

   

--------------------------------------------------------------------------------

           

Address:

               

--------------------------------------------------------------------------------

         

Telephone:

         

Address:

       

--------------------------------------------------------------------------------

         

--------------------------------------------------------------------------------

Fax:

         

Address:

       

--------------------------------------------------------------------------------

         

--------------------------------------------------------------------------------

           

Telephone:

                   

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Fax:

                   

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PURCHASER:

 

CROSS ATLANTIC TECHNOLOGY FUND II, L.P.

     

PURCHASER:

 

By:   

 

CROSS ATLANTIC CAPITAL PARTNERS, INC.,

    its General Partner

     

/s/    H.B.E. Van Cutsem

--------------------------------------------------------------------------------

Hugh Bernard Edward Van Cutsem

By:   

 

/s/    Glenn T. Rieger

     

Address:

       

--------------------------------------------------------------------------------

         

--------------------------------------------------------------------------------

   

Name: Glenn T. Rieger

Title: President

     

Address:

                 

--------------------------------------------------------------------------------

         

Telephone:

                   

--------------------------------------------------------------------------------

           

Fax:

                   

--------------------------------------------------------------------------------

Address:

                   

--------------------------------------------------------------------------------

           

Address:

                   

--------------------------------------------------------------------------------

           

Telephone:

                   

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Fax:

                   

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Series D Convertible Preferred Stock Purchase Agreement

 

PURCHASER:

 

PRODUCTIVE NOMINEES LIMITED

             

PURCHASER:

 

PICTET PRIVATE EQUITY INVESTORS S.A.

By:  

/s/    Authorised Signature

              By:   /s/    Jurg Egli  

/s/    Elaine Brookes

   

--------------------------------------------------------------------------------

         

--------------------------------------------------------------------------------

   

Name: Authorised Signature

Title:

                 

Name: Jürg Egli

Title: Director

 

Elaine Brookes

Director

Address:

                 

Address:

       

--------------------------------------------------------------------------------

             

--------------------------------------------------------------------------------

Address:

                 

Address:

       

--------------------------------------------------------------------------------

             

--------------------------------------------------------------------------------

Telephone:

                 

Telephone:

       

--------------------------------------------------------------------------------

             

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Fax:

                 

Fax:

       

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--------------------------------------------------------------------------------

                         

--------------------------------------------------------------------------------

               

PURCHASER:

 

SCORPION NOMINEES (BVI) LIMITED

             

PURCHASER:

 

UBS FINANCIAL SERVICES INC. NOT IN ITS CORPORATE CAPACITY BUT SOLELY AS
CUSTODIAN OF THE INDIVIDUAL RETIREMENT

By:  

/s/    William Spencer

              ACCOUNT OF JONATHAN M. N. BINDER    

--------------------------------------------------------------------------------

             

Name: William Spencer

Title: Scorpion Nominees (BVI) Limited Director

                       

Address:

             

By:

 

/s/    Anthony Conti

   

--------------------------------------------------------------------------------

             

--------------------------------------------------------------------------------

Address:

                 

Name: Anthony Conti

Title: Operations Manager

   

--------------------------------------------------------------------------------

               

Telephone:

                           

--------------------------------------------------------------------------------

               

Fax:

                 

Address:

       

--------------------------------------------------------------------------------

             

--------------------------------------------------------------------------------

                   

Address:

                           

--------------------------------------------------------------------------------

                   

Telephone:

                           

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Fax:

                           

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Series D Convertible Preferred Stock Purchase Agreement

 

PURCHASER:

         

PURCHASER:

 

JOSHUA M. RAFNER & ANGELA D. RAFNER 2000 TRUST

/s/    Emilie Van Cutsem

               

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            Emily Elise Christine Van Cutsem                

Address:

             

By:

 

/s/    

   

--------------------------------------------------------------------------------

         

--------------------------------------------------------------------------------

Address:

                 

Name:

Title:

   

--------------------------------------------------------------------------------

         

Telephone:

                     

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Fax:

                 

Address:

       

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--------------------------------------------------------------------------------

                   

Address:

                           

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Telephone:

                           

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Fax:

                           

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PURCHASER:

             

PURCHASER:

 

WILLBRO NOMINEES LIMITED

/s/    Duncan John Lloyd Fitzwilliams

         

By:

 

/s/    

--------------------------------------------------------------------------------

         

--------------------------------------------------------------------------------

Duncan John Lloyd Fitzwilliams              

Name:

Title: Secretary/Director

                   

Address:

                 

Address:

       

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Address:

                 

Address:

       

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Telephone:

                 

Telephone:

       

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Fax:

                 

Fax:

       

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Series D Convertible Preferred Stock Purchase Agreement

 

PURCHASER:

     

PURCHASER:

 

INTERCONTINENTAL SERVICES LTD

/s/    David B. Levi

         

By:

 

/s/    Colin Vibert

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David B. Levi              

Name: Colin Vibert

Title: Director

                   

Address:

                 

Address:

       

--------------------------------------------------------------------------------

             

--------------------------------------------------------------------------------

Address:

                 

Address:

       

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Telephone:

                 

Telephone:

       

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Fax:

                 

Fax:

       

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