Document:

Securities Purchase Agreement

 Exhibit 10.1 
 EXECUTION COPY 
 SECURITIES PURCHASE AGREEMENT 

This Securities Purchase Agreement (this “Agreement”) is dated as of October 10, 2012, among Marlborough Software
Development Holdings Inc., a Delaware corporation (collectively with its predecessors, the “Company”), and the investors listed on the Schedule of Investors attached hereto as Annex A and identified on the signature pages
hereto (each, an “Investor” and collectively, the “Investors”). 
 WHEREAS, subject to the
terms and conditions set forth in this Agreement and pursuant to Section 4(2) of the Securities Act (as defined below) and Rule 506 promulgated thereunder, the Company desires to issue and sell to each Investor, and each Investor, severally and
not jointly, desires to purchase from the Company certain securities of the Company, as more fully described in this Agreement. 

NOW, THEREFORE, IN CONSIDERATION of the mutual covenants contained in this Agreement, and for other good and valuable consideration the
receipt and adequacy of which are hereby acknowledged, the Company and the Investors agree as follows: 
 ARTICLE 1. 

DEFINITIONS 

1.1. Definitions. In addition to the terms defined elsewhere in this Agreement, for all purposes of this Agreement, the
following terms shall have the meanings indicated in this Section 1.1: 
 “Action” means any action,
claim, suit, inquiry, notice of violation, proceeding (including any partial proceeding such as a deposition) or investigation pending or threatened in writing against or affecting the Company, any Subsidiary or any of their respective properties
before or by any court, arbitrator, governmental or administrative agency, regulatory authority (federal, state, county, local or foreign), stock market, stock exchange or trading facility. 

“Additional Shares” means additional shares of Series A Preferred Stock that shall be issued and sold to Investors at
the Second Closing pursuant to this Agreement. 
 “Additional Units” means additional Units that shall be
issued and sold to Investors at the Second Closing pursuant to this Agreement. 
 “Affiliate” means any Person
that, directly or indirectly through one or more intermediaries, controls or is controlled by or is under common control with a Person, as such terms are used in and construed under Rule 144. 

“Business Day” means any day except Saturday, Sunday and any day which is a federal legal holiday or a day on which
banking institutions in the State of New York are authorized or required by law or other governmental action to close. 

“Close of Business” shall mean 5:00 p.m. (New York City time). 

“Commission” means the Securities and Exchange Commission. 

“Common Stock” means the common stock of the Company, par value $0.01 per share, and any securities into which such
common stock may hereafter be reclassified. 
 “Common Stock Equivalents” means any securities of the Company
or any Subsidiary which entitle the holder thereof to acquire Common Stock at any time, including without limitation, any debt, preferred stock, rights, options, warrants or other instrument that is at any time convertible into or exchangeable for,
or otherwise entitles the holder thereof to receive, Common Stock or other securities that entitle the holder to receive, directly or indirectly, Common Stock. 

 “Company Counsel” means Seyfarth Shaw LLP. 

“Company Deliverables” has the meaning set forth in Section 2.2(a). 

“Delivery Date” means three (3) Trading Days after the date on which the Investor shall have requested removal of
the restricted legends from certificates representing Shares and shall have delivered to the Company’s transfer agent those items required by Section 4.1(c) hereunder. 

“Disclosure Materials” has the meaning set forth in Section 3.1(g). 

“EBITDA” means, for any fiscal period, the consolidated net income (loss) of the Company and any of its
subsidiaries for such period plus, to the extent reflected in such consolidated net income: (A) interest expense, (B) income tax expense, (C) depreciation expense; (D) any expense related to the
Warrants issued to the Investors pursuant to this Agreement; and (E) amortization or writedown of intangibles, all derived from the consolidated financial statements of the Company and its subsidiaries at and as of the last day of
such fiscal period prepared in accordance with U.S. generally accepted accounting principles consistently followed throughout the periods indicated, subject, in the case of unaudited statements, to year-end audit adjustments. For purpose of this
definition, any research and development costs and expenses incurred by the Company and any of its subsidiaries shall be deemed expenses (and not investments). 
 “Exchange Act” means the Securities Exchange Act of 1934, as amended. 
 “Exempt Securities” means (i) the issuance of additional Units at a price no less than the Per Unit Purchase Price and with an aggregate purchase price not to exceed $3,000,000,
provided that such issuance occurs on or before December 31, 2012, (ii) Units issued pursuant to the Second Closing, (iii) securities issued or issuable pursuant to stock splits, stock dividends, or similar transactions;
(iv) shares of Common Stock issued upon exercise of Outstanding Compensatory Awards; (v) up to 1,500,000 shares of Common Stock (other than Outstanding Compensatory Awards) that may be issued to employees, consultants, officers or
directors of the Company pursuant to stock option plans or restricted stock plans or agreements approved by the Compensation Committee and the Board of Directors of the Company any time prior to June 30, 2014, provided that the issuance price
of any such Common Stock shall not be less than $0.75; and (vi) shares of Common Stock issued or issuable (A) to financial institutions or lessors in connection with commercial credit arrangements, equipment financings, commercial property
lease transactions or similar transactions; (B) in connection with acquisition transactions; or (C) securities in strategic partnership transactions representing in the aggregate up to 20% of the issued and outstanding share capital of the
Company at the time of their issuance. 
 “First Closing” means the closing of the purchase and sale of the
Initial Units pursuant to Article 2. 
 “First Closing Date” means the Business Day on which all of the
conditions set forth in Sections 5.1 and 5.2 hereof are satisfied, or such other date as the parties may agree. 

“GAAP” means U.S. generally accepted accounting principles. 

“Initial Shares” means the shares of Series A Preferred Stock issued or issuable at the First Closing to the Investors
pursuant to this Agreement. 
 “Initial Units” means the Units at the First Closing to the Investors pursuant
to this Agreement. 
 “Investment Amount” means, with respect to each Investor, the Investment Amount indicated
on such Investor’s signature page to this Agreement. 
 “Investor Deliverables” has the meaning set forth
in Section 2.2(b). 

  
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 “Lien” means any lien, charge, encumbrance, security interest, right of
first refusal or other restrictions of any kind, including any restriction on use, voting, transfer, receipt of income, or exercise of any other attribute of ownership. 
 “Material Adverse Effect” means any result, occurrence, fact, change, event or effect (whether or not constituting a breach of a representation, warranty or covenant set forth in this
Agreement) that, individually or in the aggregate with any such other results, occurrences, facts, changes, events or effects, (i) would have or could reasonably be expected to have a material adverse effect on the historical or near-term or
long-term projected business, operations, assets, liabilities, condition (financial or otherwise) or results of operations of the Company and the Subsidiaries, taken as a whole, (ii) would or could reasonably be expected to prevent or
materially impair or delay the ability of the Company to consummate the transactions contemplated by this Agreement or perform its duties under this Agreement or any of the other Transaction Documents, or (iii) would or could reasonably be
expected to be materially adverse to the ability of the Company or any Subsidiary to operate its business immediately after the First Closing substantially in the manner as such business was operated immediately prior to the First
Closing.
 “Money Laundering Laws” has the meaning set forth in Section 3.1(s). 

“OFAC” has the meaning set forth in Section 3.1(r). 

“Outside Date” means October 31, 2012. 
 “Outstanding Compensatory Awards” means options to purchase 1,648,267 shares of the Company’s Common Stock issued to employees, consultants, officers or directors of the Company
pursuant to stock option plans or restricted stock plans or agreements approved by the Compensation Committee and the Board of Directors of the Company prior to September 1, 2012 and that are outstanding as of the date this Agreement.

 “Per Unit Purchase Price” equals $3.35. 

“Person” means an individual or corporation, partnership, trust, incorporated or unincorporated association, joint
venture, limited liability company, joint stock company, government (or an agency or subdivision thereof) or other entity of any kind. 
 “Reference Value” means $0.67 per share. 
 “Rule
144” means Rule 144 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended from time to time, or any similar rule or regulation hereafter adopted by the Commission having substantially the same effect as
such Rule. 
 “SEC Reports” has the meaning set forth in Section 3.1(h). 

“Second Closing” means the closing of the purchase and sale of the Additional Units pursuant to Article 6. 

“Second Closing Date” has the meaning set forth in Section 6.1(a). 

“Securities Act” means the Securities Act of 1933, as amended. 

“Series A Preferred Stock” means the 6.5% Series A Redeemable Preferred Stock of the Company, par value $0.01 per share
having the powers, designations, preferences and rights in accordance with the Certificate of Designation in the form of Exhibit A attached hereto (“Certificate of Designation”). 

“Shares” means the aggregate of the Initial Shares and Additional Shares that are issued or issuable to the Investors
pursuant to this Agreement. 

  
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 “Short Sales” include, without limitation, all “short sales” as
defined in Rule 200 promulgated under Regulation SHO under the Exchange Act and all types of direct and indirect stock pledges, forward sale contracts, options, puts, calls, swaps and similar arrangements (including on a total return basis), and
sales and other transactions through non-US broker dealers or foreign regulated brokers. 
 “Subsidiary” of a
specified Person is an Affiliate controlled by such Person directly, or indirectly through one or more intermediaries. 

“Trading Day” means (i) a day on which the Common Stock is traded on a Trading Market (other than the OTC Bulletin
Board), or (ii) if the Common Stock is not listed on a Trading Market (other than the OTC Bulletin Board), a day on which the Common Stock is traded in the over-the-counter market, as reported by the OTC Bulletin Board, or (iii) if the
Common Stock is not quoted on any Trading Market, a day on which the Common Stock is quoted in the over-the-counter market as reported by the Pink Sheets LLC (or any similar organization or agency succeeding to its functions of reporting prices);
provided, that in the event that the Common Stock is not listed or quoted as set forth in (i), (ii) and (iii) hereof, then Trading Day shall mean a Business Day. 
 “Trading Market” means whichever of the NYSE AMEX Equities, the Nasdaq Capital Market, the Nasdaq Global Market, the Nasdaq Global Select Market, the New York Stock Exchange or the OTC
Bulletin Board (or any successors to any of the foregoing) on which the Common Stock is listed or quoted for trading on the date in question. 
 “Transaction Documents” means this Agreement and any other documents or agreements executed pursuant to this Agreement. 

“Units” means the aggregate of the Initial Units and the Additional Units that are issued or issuable to the Investors
pursuant to this Agreement, each unit consisting of (a) one share of Series A Preferred Stock, and (b) a Warrant to purchase five shares of Common Stock. The Shares and Warrants are immediately separable and will be issued separately.

 “Warrant” or “Warrants” means the ten year warrants to purchase Common Stock, each Warrant
to be exercisable for five shares of Common Stock at an exercise price per share equal to the Reference Value, substantially in the form of Exhibit B attached hereto. 

“Warrant Shares” means shares of Common Stock issuable upon exercise of the Warrants. 

ARTICLE 2. 

PURCHASE AND SALE OF INITIAL UNITS 
 2.1. First Closing. Subject to the terms and conditions set forth in this Agreement (including Section 9.6 below), at the First Closing the Company shall issue and sell to each
Investor, and each Investor shall, severally and not jointly, purchase from the Company, the Initial Units representing such Investor’s Investment Amount, each Unit to be issued and sold for the Per Unit Purchase Price. The First Closing
shall take place at the offices of Company Counsel on the First Closing Date or at such other location or time as the parties may agree. 
 2.2. First Closing Deliveries.
 (a) At the First Closing, the
Company shall deliver or cause to be delivered to each Investor (i) a certificate evidencing a number of Initial Shares equal to such Investor’s Investment Amount divided by the Per Unit Purchase Price, registered in the name of such
Investor, (ii) Warrants to purchase a number of Warrant Shares equal to such Investor’s Investment Amount divided by the Reference Value, registered in the name of such Investor, with an exercise price per share of Common Stock equal to
the Reference Value, (iii) a copy, certified by an officer of the Company, of duly adopted resolutions of the Board of Directors of the Company, substantially in the form of Exhibit 2.2(a)(iii) attached hereto; and (iv) an opinion of
counsel to the Company, substantially in the form of Exhibit 2.2(a)(iv) attached hereto, dated as of the date of the First Closing, as to the organization, good standing and authority of the Company, the enforceability of the Transaction Documents
and the transferability of the Warrant Shares (the “Company Deliverables”). 

  
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 (b) By the First Closing, each Investor shall deliver or cause to be delivered its
counterpart signature page to this Agreement duly signed by such Investor (collectively, the “Investor Deliverables”). 
 (c) At the First Closing, each Investor shall cause to be delivered its Investment Amount, in United States dollars and in immediately available funds, by wire transfer to an account designated in
writing by the Company for such purpose. 
 2.3. Subsequent Closings. The Company may conduct one or more
subsequent closings after the First Closing, but in any event on or before March 31, 2013, on the same terms (and price) as the First Closing provided that the Company may not sell Units with an aggregate purchase price exceeding $3,000,000 at
such subsequent closings. 
 ARTICLE 3. 
 REPRESENTATIONS AND WARRANTIES 
 3.1. Representations and Warranties of
the Company. The Company hereby makes the following representations and warranties to each Investor: 

(a) Subsidiaries. The Company has no direct or indirect Subsidiaries other than as specified in the SEC
Reports. The Company owns, directly or indirectly, all of the capital stock of each Subsidiary free and clear of any and all Liens, and all the issued and outstanding shares of capital stock of each Subsidiary are validly issued and are fully
paid, non-assessable and free of preemptive and similar rights. There are no outstanding conversion or other rights, options, warrants or agreements granted or issued by or binding upon any Subsidiary for the purchase or acquisition of any
shares of capital stock of any Subsidiary or any other securities convertible into, exchangeable for or evidencing the rights to subscribe for any shares of such capital stock. Neither the Company nor any Subsidiary is subject to any obligation
(contingent or otherwise) to repurchase or otherwise acquire or retire any shares of the capital stock of any Person or any convertible securities, rights, warrants or options of the type described in the preceding sentence. Neither the Company
nor any Subsidiary is party to, nor has any knowledge of, any agreement restricting the voting or transfer of any shares of the capital stock of any Subsidiary. 
 (b) Organization and Qualification. The Company and each Subsidiary are duly incorporated or otherwise organized, validly existing and in good standing under the laws of the jurisdiction
of its incorporation or organization (as applicable), with the requisite power and authority to own and use its properties and assets and to carry on its business as currently conducted. Neither the Company nor any Subsidiary is in violation of
any of the provisions of its respective certificate or articles of incorporation, bylaws or other organizational or charter documents. The Company and each Subsidiary are duly qualified to conduct its respective businesses and are in good
standing as a foreign corporation or other entity in each jurisdiction in which the nature of the business conducted or property owned by it makes such qualification necessary, except where the failure to be so qualified or in good standing, as the
case may be, could not, individually or in the aggregate, have or reasonably be expected to result in a Material Adverse Effect. 
 (c) Authorization; Enforcement. The Company has the requisite corporate power and authority to enter into and to consummate the transactions contemplated by each of the Transaction
Documents and otherwise to carry out its obligations thereunder, and to issue and sell the Units, Shares, Warrants and the Warrant Shares. The execution and delivery of each of the Transaction Documents by the Company and the consummation by it
of the transactions contemplated thereby have been duly authorized by all necessary action on the part of the Company and no further action is required by the Company, any Subsidiary, the Board of Directors of the Company, or the Company’s
stockholders in connection therewith. Each Transaction Document has been (or upon delivery will have been) duly executed by the Company and, when delivered in accordance with the terms hereof, will constitute the valid and binding obligation of
the Company enforceable against the Company in accordance with its terms, except as such enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium, liquidation or similar laws relating to, or affecting generally
the enforcement of, creditors’ rights and remedies or by other equitable principles of general application. 

  
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 (d) No Conflicts. The execution, delivery and performance of the
Transaction Documents by the Company and the consummation by the Company of the transactions contemplated thereby do not and will not (i) conflict with or violate any provision of the Company’s or any Subsidiary’s certificate or
articles of incorporation, bylaws or other organizational or charter documents, or (ii) conflict with, or constitute a default (or an event that with notice or lapse of time or both would become a default) under, or give to others any rights of
termination, amendment, acceleration or cancellation (with or without notice, lapse of time or both) of, any agreement, credit facility, debt or other instrument (evidencing a Company or Subsidiary debt or otherwise) or other understanding to which
the Company or any Subsidiary is a party or by which any property or asset of the Company or any Subsidiary is bound or affected, or (iii) result in a violation of any law, rule, regulation, order, judgment, injunction, decree or other
restriction of any court or governmental authority to which the Company or a Subsidiary is subject (including federal and state securities laws and regulations), or by which any property or asset of the Company or a Subsidiary is bound or affected;
except in the case of each of clauses (ii) and (iii), such as could not, individually or in the aggregate, have or reasonably be expected to result in a Material Adverse Effect. 

(e) Filings, Consents and Approvals. Neither the Company nor any Subsidiary is required to obtain any consent, waiver,
authorization or order of, give any notice to, or make any filing or registration with, any United States court or other federal, state, local or other governmental authority or other Person in connection with the execution, delivery and performance
by the Company of the Transaction Documents, other than (i) the filing with the Commission of one or more Registration Statements in accordance with this Agreement, (ii) filings required by state securities laws, (iii) the filing of a
Notice of Sale of Securities on Form D with the Commission under Regulation D of the Securities Act, and (iv) those that have been made or obtained prior to the date of this Agreement. 

(f) Issuance of the Shares. The issuance, sale and delivery of the Units, Shares and Warrants and the issuance of the
Warrant Shares have been duly authorized by all requisite action on part of the Company, and no action or authorization of the stockholders of the Company is required with respect to thereto. The Units, Shares, Warrants and the issuance of the
Warrant Shares, when issued and paid for in accordance with the Transaction Documents, each will be duly and validly issued, fully paid and nonassessable shares with no personal liability attaching to the ownership thereof, free and clear of all
Liens. The issuance, sale and delivery of the Units, Shares, Warrant and Warrant Shares will not be subject to any preemptive right of any stockholder of the Company or to any right of first refusal in favor of any Person, in either case, which
shall not have been waived by the holder thereof. The Company has authorized and reserved from its duly authorized capital stock the shares of Series A Preferred Stock issuable pursuant to this Agreement in order to issue the Shares and has reserved
from its duly authorized capital stock the Warrant Shares issuable upon exercise of the Warrants in order to issue the Warrants. Upon filing of a registration statement with the SEC as to the Warrant Shares and the effectiveness of such registration
statement (including, without limitation, pursuant to Section 7.1), until such time as the registration statement has been suspended, withdrawn or terminated, the Warrant Shares (i) with respect to those Warrant Shares held by Altshuler,
shall not be considered “restricted” or “control” securities within the meaning of Rule 144 under the Securities Act, (ii) may be sold to any person or entity without any restrictions or limitations which would otherwise be
imposed under U.S. securities laws by virtue of the Warrant Shares having been issued in a transaction exempt from registration under applicable U.S. securities laws; and (iii) may be sold in accordance with the plan of distribution included in
such registration statement without regard to the volume, manner of sale or holding period requirements of Rule 144. 

(g) Capital Stock. (i) The Company has an authorized capitalization consisting of (i) 30,500,000 shares of Common
Stock, of which 10,751,609 shares are issued and outstanding and 0 shares are held in the Company’s treasury, (ii) 10,000,000 shares of preferred stock, of which 0 shares are issued and outstanding and 0 shares are held in the
Company’s treasury, including 1,940,299 shares of preferred stock which have been designated as Series A Preferred Stock, of which 0 shares are issued and outstanding and 0 shares are held in the Company’s treasury. All such outstanding
shares of capital stock are duly authorized, have been validly issued, and are fully paid and nonassessable and are not subject to, nor were they issued in violation of, any preemptive rights. Sufficient shares of Common Stock are reserved for
issuance of the Warrant Shares. The Capitalization of the Company as of the date of this Agreement and after giving effect to the issuance and sale of the Units in the Initial Closing and the Second Closing contemplated by this Agreement, in each
case assuming no other issuances or sales of securities by the Company in accordance with this Agreement, is as set forth on Schedule 3.1(g) attached hereto. 

  
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Except as described above, no shares of capital stock of the Company are authorized, issued, outstanding or reserved for issuance. Except as described in the SEC Filings, there are no outstanding
or authorized options, warrants, rights, subscriptions, agreements, obligations, convertible or exchangeable securities, or other commitments contingent or otherwise, relating to the capital stock of, or other equity or voting interest in, the
Company, pursuant to which the Company or any of its Subsidiaries is or may become obligated to issue, deliver or sell or cause to be issued, delivered or sold, shares of Common Stock, any other shares of the capital stock of, or other equity or
voting interest in, the Company or any securities convertible into, exchangeable for, or evidencing the right to subscribe for or acquire, any shares of the capital stock of, or other equity or voting interest in, the Company. There are no
outstanding or authorized stock appreciation, phantom stock, profit participation or similar rights with respect to the capital stock of, or other equity or voting interest in, the Company. To the Company’s knowledge, there are no irrevocable
proxies or voting agreements with respect to any equity or voting interest in, the Company. 
 (ii) There are no restrictions of
any kind which prevent or restrict the payment of dividends or other distributions by the Company other than those imposed by the Certificate of Incorporation or by laws of general applicability of the Company’s jurisdiction of organization.

 (h) SEC Reports; Financial Statements. The Company has furnished or filed all current and periodic reports
required to be furnished or filed by it under the Securities Act and the Exchange Act, including pursuant to Sections 13(a) or 15(d) thereof (the foregoing materials filed during such period being collectively referred to herein as the “SEC
Reports” and, together with the Schedules to this Agreement (if any), the “Disclosure Materials”) on a timely basis or has timely filed a valid extension of such time of filing and has filed any such SEC Reports prior to
the expiration of any such extension. As of their respective dates, the SEC Reports complied in all material respects with the requirements of the Securities Act and the Exchange Act and the rules and regulations of the Commission promulgated
thereunder, and none of the SEC Reports, when filed, contained any untrue statement of a material fact or omitted to state a material fact required to be stated therein or necessary in order to make the statements therein, in light of the
circumstances under which they were made, not misleading. The financial statements of the Company included in the SEC Reports (the “Financial Statements”) comply in all material respects with applicable accounting requirements
and the rules and regulations of the Commission with respect thereto as in effect at the time of filing. Such financial statements have been prepared in accordance with GAAP applied on a consistent basis during the periods involved, except as
may be otherwise specified in such financial statements or the notes thereto, and fairly present in all material respects the financial position of the Company and its consolidated Subsidiaries as of and for the dates thereof and the results of
operations and cash flows for the periods then ended, subject, in the case of unaudited statements, to year-end audit adjustments. 
 (k) Litigation. There is no Action which (i) adversely affects or challenges the legality, validity or enforceability of any of the Transaction Documents or the Units or
(ii) except as specifically disclosed in the SEC Reports as of the date of this Agreement, could, if there were an unfavorable decision, individually or in the aggregate, have or reasonably be expected to result in a material effect on the
Company and its business and operations. Neither the Company nor any Subsidiary, nor any director or officer thereof (in his or her capacity as such), is or has been the subject of any Action involving a claim of violation of or liability under
federal or state securities laws or a claim of breach of fiduciary duty, except as specifically disclosed in the SEC Reports as of the date of this Agreement. There has not been, and to the knowledge of the Company, there is not pending any
investigation by the Commission involving the Company or any current or former director or officer of the Company (in his or her capacity as such). The Commission has not issued any stop order or other order suspending the effectiveness of any
registration statement filed by the Company or any Subsidiary under the Exchange Act or the Securities Act. 

(l) Compliance. Neither the Company nor any Subsidiary (i) is in default under or in violation of (and no event has
occurred that has not been waived that, with notice or lapse of time or both, would result in a default by the Company or any Subsidiary under), nor has the Company or any Subsidiary received notice of a claim that it is in default under or that it
is in violation of, any indenture, loan or credit agreement or any other agreement or instrument to which it is a party or by which it or any of its properties is bound (whether or not such default or violation has been waived), (ii) is in
violation of any order of any court, arbitrator or governmental body, or (iii) is or has been in violation of any statute, rule or regulation of any governmental authority, including without limitation all foreign, federal, state and local laws
relating to taxes, environmental protection, occupational health 

  
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and safety, product quality and safety and employment and labor matters. The Company is in compliance with all effective requirements of the Sarbanes-Oxley Act of 2002, as amended, and the rules
and regulations thereunder, that are applicable to it, except where such noncompliance could not have or reasonably be expected to result in a Material Adverse Effect. 
 (m) Intellectual Properties. 
 (i) For purposes of this
Agreement, (1) “Intellectual Property” shall mean any of the following: (A) patents and patent applications; (B) registered and unregistered trademarks and service marks, pending trademark and service mark
registration applications, and intent-to-use registrations or similar reservations of marks, logos, trade names, brand names, trade dress, business names and corporate names, including all goodwill associated therewith; (C) registered
copyrights and applications for registration thereof; (iv) internet domain names, applications and reservations therefor, uniform resource locators (“URLs”) and the corresponding Internet sites; (D) trade secrets and proprietary
information not otherwise listed in (1) through (4) above; and (E) any other intellectual property rights; and (2) “Company Intellectual Property” shall mean any Intellectual Property or rights thereto, owned by
the Company or any of its Subsidiaries or used or held for use in connection with the business of the Company or any of its Subsidiaries. 
 (ii) Schedule 3.1(m) of the Agreement set forth a true and complete list of each: (A) patent, trademark, copyright, domain name registration which has been issued to the Company with respect
to any of the Company Intellectual Property and (B) pending patent, trademark or copyright application or application for registration which the Company has made with respect to any of the Company Intellectual Property. 

(iii) The Company Intellectual Property includes all Intellectual Property rights necessary or material to the Company or
any of its Subsidiaries to conduct their respective business(es) as and where conducted on the First Closing or the Second Closing, as the case may be, and as contemplated to be conducted in the near term and neither the Company nor any of its
Subsidiaries uses any Intellectual Property which is not owned by the Company or a Subsidiary or licensed to the Company under a duly executed agreement. To the Company’s knowledge, neither the Company’s business operations nor any of its
Subsidiaries’ business operations (including, without limitation, the manufacturing, marketing, licensing, sale or distribution of products and the general conduct and operation of the business of the Company and its Subsidiaries) violates,
infringes, misappropriates or misuses any Intellectual Property rights. 
 (iv) Each item of Company Intellectual
Property registered, filed, issued or applied for, with the applicable official governmental registrars and/or issuers has been duly and validly registered in, filed in or issued by, the official governmental registrars and/or issuers (or officially
recognized issuers) of patents, trademarks, copyrights or Internet domain names, in the various jurisdictions, each such registration, filing and/or issuance (A) has not been abandoned, canceled or otherwise compromised, (B) has been
maintained effective by all requisite filings, renewals and payments, and (C) remains in full force and effect. 
 (v) To the extent any Company Intellectual Property is or has been used under license in the business of the Company or any of its Subsidiaries, no notice of a material default of such license has been
sent or received by the Company and/or any of its Subsidiaries which default remains uncured, and the execution, delivery or performance of the Company’s obligations hereunder and under the other instruments and agreements to be executed and
delivered as contemplated hereby will not result in such a default. Each such license agreement is a legal, valid and binding obligation of the Company or any of its Subsidiaries and the relevant other parties thereto, enforceable in accordance with
the terms thereof and the transactions contemplated by this Agreement will not breach the terms thereof. 
 (vi)
The Company or one of its Subsidiaries owns or is licensed to use the Company Intellectual Property free and clear of any Liens, except with respect to any Company Intellectual Property licensed to the Company from a third party in the ordinary
course of the Company’s business which may contain customary restrictions (other than any lien, charge, encumbrance, or other security interest) as to which the Company must comply with the applicable license obligations. 

  
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 (vii) Neither the Company nor any of its Subsidiaries has received any
notice of any claim, or a threat of any claim, from any third party, and no third party claims are pending, (A) challenging the right of the Company or any of its Subsidiaries to use any Intellectual Property or alleging any violation,
infringement, misuse or misappropriation by the Company or any of its Subsidiaries of Intellectual Property or indicating that the failure to take a license would result in any such claim, or (B) challenging the ownership rights of the Company
or any of its Subsidiaries in any Company Intellectual Property or asserting any opposition, interference, invalidity, termination, abandonment, unenforceability, or other infirmity of any Company Intellectual Property. 

(viii) Neither the Company nor any of its Subsidiaries has made any claim of a violation, infringement, misuse or
misappropriation by any third party (including any employee or former employee of the Company or any of its Subsidiaries) of its rights to, or in connection with, any Company Intellectual Property, which claim is pending. Neither the Company nor any
of its Subsidiaries has entered into any agreement to indemnify any other Person against any charge of infringement of any Intellectual Property, other than indemnification provisions contained in purchase orders or license agreements arising in the
ordinary course of business and indemnification obligations to Bitstream, Inc with respect to technology transferred to the Company from Bitstream, Inc. pursuant to agreements which have been publically disclosed and filed with the SEC. 

(ix) The Company and its Subsidiaries have secured valid written assignments from all consultants, contractors and
employees who contributed to the creation or development of Company Intellectual Property of the rights to such contributions that either the Company or one of its Subsidiaries do not already own by operation of law. 

(n) Certain Fees. The Investors shall have no obligation with respect to any fees or with respect to any claims (other
than such fees or commissions owed by an Investor pursuant to written agreements executed by such Investor which fees or commissions shall be the sole responsibility of such Investor) made by or on behalf of any broker, financial advisor or
consultant, finder, placement agent, investment banker, bank or other Person for brokerage or finder’s fees or commissions that may be due in connection with the transactions contemplated by this Agreement. 

(o) Investment Company. The Company is not, and is not an Affiliate of, and immediately following the First Closing will
not have become, an “investment company” within the meaning of the Investment Company Act of 1940, as amended. 

(p) No Additional Agreements. The Company does not have any agreement or understanding with any Investor with respect to
the transactions contemplated by the Transaction Documents other than as specified in the Transaction Documents. 

(q) Foreign Corrupt Practices Act. Neither the Company nor any Subsidiary, nor to the knowledge of the Company, any
agent or other person acting on behalf of any of the Company or any Subsidiary, has, directly or indirectly, (i) used any funds, or will use any proceeds from the sale of the Shares, for unlawful contributions, gifts, entertainment or other
unlawful expenses related to foreign or domestic political activity, (ii) made any unlawful payment to foreign or domestic government officials or employees or to any foreign or domestic political parties or campaigns from corporate funds,
(iii) failed to disclose fully any contribution made by the Company or any Subsidiary (or made by any Person acting on their behalf of which the Company is aware) which is in violation of law, or (iv) has violated the Foreign Corrupt
Practices Act of 1977, as amended, and the rules and regulations thereunder. 
 (r) OFAC. Neither the Company nor
any Subsidiary nor, to the knowledge of the Company, any director, officer, agent, employee, Affiliate or Person acting on behalf of the Company or any Subsidiary is currently subject to any U.S. sanctions administered by the Office of Foreign
Assets Control of the U.S. Treasury Department (“OFAC”); and the Company will not directly or indirectly use the proceeds of the sale of the Shares, or 

  
 9 

 
lend, contribute or otherwise make available such proceeds to any Subsidiary, joint venture partner or other Person or entity, towards any sales or operations in Cuba, Iran, Syria, Sudan, Myanmar
or any other country sanctioned by OFAC or for the purpose of financing the activities of any Person currently subject to any U.S. sanctions administered by OFAC. 
 (s) Money Laundering Laws. The operations of each of the Company and any Subsidiary are and have been conducted at all times in compliance with the money laundering statutes of applicable
jurisdictions, the rules and regulations thereunder and any related or similar rules, regulations or guidelines, issued, administered or enforced by any applicable governmental agency (collectively, the “Money Laundering Laws”) and
no action, suit or proceeding by or before any court or governmental agency, authority or body or any arbitrator involving the Company and/or any Subsidiary with respect to the Money Laundering Laws is pending or, to the best knowledge of the
Company, threatened. 
 (t) Taxes. The Company has timely filed all tax returns required to be filed by it. The Company
has not made any elections under applicable laws or regulations (other than elections that related solely to methods of accounting, depreciation or amortization) that would have a material adverse effect on the business, condition, operations or
assets of the Company. Proper and accurate amounts have been withheld by the Company from its employees for all periods in compliance with the tax, social security and any employment withholding provisions of applicable law. The Company is currently
not liable for any income tax, capital gains tax, value added tax, or other tax, except for taxes paid in the ordinary course of business, such as V.A.T, social security and withholding of income taxes, in respect of which payments the Company is
not under any default. 
 (u) Related Party Transactions. Other than as disclosed in the SEC Filings, no officer or
director of the Company, any Affiliate of an officer or director of the Company, or, to the Company’s knowledge, no shareholder of the Company holding at least 5% of the issued and outstanding shares of capital stock of the Company, either
directly or indirectly has an interest in any related party transaction with the Company subject to disclosure pursuant to Item 404 of Regulation S-K. To the Company’s knowledge, no officer, director or shareholder of the Company holding
at least 5% of the issued and outstanding shares, (i) is involved in any business arrangement or relationship with the Company which is material to the Company or its business, (ii) has a beneficial interest in any contract or agreement to
which the Company is a party or currently proposes to be a party, (iii) to the knowledge of the Company, has any interest in or owns any property or right, including Intellectual Property, material to the Company in the conduct of its business
as presently conducted and as currently proposed by the Company to be conducted, or (iv) has lent or advanced any money to (of which any amount is outstanding), or borrowed any money from, or guaranteed any outstanding indebtedness or other
outstanding obligations of the Company. 
 (v) Disclosure. Neither the SEC Filings, this Agreement, nor any schedule or
exhibit hereto, when read together, 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, in light of the circumstances under which they were made,
not misleading (excluding any statements or omissions to state a material fact made by parties other than the Company in such other documents). To the Company’s best knowledge, there is no material fact or event with respect to the business,
financial condition, affairs, operations, or assets of the Company, which constitutes, or which is reasonably expected to result in, a Material Adverse Effect. 
 3.2. Representations and Warranties of the Investors. Each Investor hereby, for itself and for no other Investor, represents and warrants to the Company as follows: 

(a) Organization; Authority. Such Investor is an entity duly organized, validly existing and in good standing under the
laws of the jurisdiction of its organization with the requisite corporate or partnership power and authority to enter into and to consummate the transactions contemplated by the applicable Transaction Documents and otherwise to carry out its
obligations thereunder. The execution, delivery and performance by such Investor of the transactions contemplated by this Agreement has been duly authorized by all necessary corporate or, if such Investor is not a corporation, such partnership,
limited liability company or other applicable like action, on the part of such Investor. Each of the Transaction Documents has been duly executed by such Investor, and when delivered by such Investor in accordance with the terms hereof, will
constitute the valid and legally binding obligation of such Investor, enforceable against it in accordance with its terms, except as such enforceability may be 

  
 10 

 
limited by applicable bankruptcy, insolvency, reorganization, moratorium, liquidation or similar laws relating to, or affecting generally the enforcement of, creditors’ rights and remedies
or by other equitable principles of general application. 
 (b) Investment Intent. Such Investor is acquiring
the Units as principal for its own account (except in the case of Altshuler Shaham Provident Funds and Pension Ltd (“Altshuler”), which is acquiring the Units in trust for the benefit of the provident funds and/or pensions
managed by it), and not with a view to or for distributing or reselling such Shares or any part thereof, without prejudice, however, to such Investor’s right at all times to sell or otherwise dispose of all or any part of such Shares in
compliance with applicable federal and state securities laws. Such Investor is acquiring the Shares hereunder in the ordinary course of its business. Such Investor does not have any agreement or understanding, directly or indirectly, with any
Person to distribute any of the Shares. 
 (c) Investor Status. At the time such Investor was offered the
Units, it was, and at the date hereof it is, an “accredited investor” as defined in Rule 501(a) under the Securities Act, it being expressly acknowledged by the Company that Altshuler qualifies as an accredited investor by virtue of its
status as the management company of the provident funds and pensions managed by it which is a corporation, partnership or limited liability company not formed for the specific purpose of acquiring the securities offered, with total assets in excess
of $5,000,000. Such Investor is not a registered broker-dealer under Section 15 of the Exchange Act. 

(d) General Solicitation. Such Investor is not purchasing the Units as a result of any advertisement, article, notice or
other communication regarding the Units published in any newspaper, magazine or similar media or broadcast over television or radio or presented at any seminar or any other general solicitation or general advertisement. 

(e) Access to Information. Such Investor acknowledges that it had access to review the Disclosure Materials and has been
afforded (i) the opportunity to ask such questions as it has deemed necessary of, and to receive answers from, representatives of the Company concerning the terms and conditions of the offering of the Units and the merits and risks of investing
in the Units; (ii) access to information about the Company and the Subsidiaries and their respective financial condition, results of operations, business, properties, management and prospects sufficient to enable it to evaluate its investment;
and (iii) the opportunity to obtain such additional information that the Company possesses or can acquire without unreasonable effort or expense that is necessary to make an informed investment decision with respect to the
investment. Neither such inquiries nor any other investigation conducted by or on behalf of such Investor or its representatives or counsel shall modify, amend or affect such Investor’s right to rely on the truth, accuracy and completeness
of the Disclosure Materials and the Company’s representations and warranties contained in the Transaction Documents. 

(f) Certain Trading Activities. Other than consummating the transactions contemplated hereunder, such Investor, has not,
directly or indirectly, nor has any Person acting on behalf of or pursuant to any understanding with such Investor, executed any purchases or sales, including Short Sales, of the securities of the Company during the period commencing as of the
time that such Investor first received a term sheet (written or oral) from the Company or any other Person representing the Company setting forth the material terms of the transactions contemplated hereunder and ending immediately prior to the
execution hereof; provided, however, that with respect to Altshuler, it is expressly acknowledged and agreed by the parties that Altshuler is providing this representation and warranty solely for itself and in its own name and not with respect to
the provident funds and pensions managed by, with respect to such funds and pensions no representation or warranty is made. Notwithstanding the foregoing, in the case of an Investor that is a multi-managed investment vehicle whereby separate
portfolio managers manage separate portions of such Investor’s assets and the portfolio managers have no direct knowledge of the investment decisions made by the portfolio managers managing other portions of such Investor’s assets, the
representation set forth above shall only apply with respect to the portion of assets managed by the portfolio manager that made the investment decision to purchase the Securities covered by this Agreement. Such Investor, as the management company
of the provident funds and pensions managed by it (not to include Affiliates over which Investor does not exercise investment discretion), covenants that neither it nor any Person acting on its behalf or pursuant to any understanding with it will
engage in any transactions in the securities of the Company (including Short Sales) prior to the time that the transactions contemplated by this Agreement are publicly disclosed. 

  
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 (g) Independent Investment Decision. Except as may be disclosed in any
filings with the Commission by the Investors under Section 13 and/or Section 16 of the Exchange Act, no Investor has agreed to act with any other Investor for the purpose of acquiring, holding, voting or disposing of the Shares or Warrants
for purposes of Section 13(d) under the Exchange Act, and each Investor is acting independently with respect to its investment in the Units. Such Investor has independently evaluated the merits of its decision to purchase Units pursuant to
the Transaction Documents, and such Investor confirms that it has not relied on the advice of any other Investor’s business and/or legal counsel in making such decision. Such Investor has not relied on the business or legal advice of the
Company or any of its agents, counsel or Affiliates in making its investment decision hereunder. 
 (h) Affiliates
Involvement in Offering. Investor acknowledges that it is aware of the following: One or more of the Company’s officers or directors may invest in the Units and it is anticipated that one director, Amos Kaminski, will purchase a
substantial portion of the Units issued and sold pursuant to this Agreement. The participation of officers and directors of the Company in this offering should not be taken as an indication of their views regarding the prospects of the Company nor
should the Investor infer from their participation that they possess non-public information suggesting favorable prospects for the Company. Given that the Company is attempting to close the offering in an expeditious manner, the Company has not
engaged an investment banker and the Per Unit Purchase Price has been determined based on negotiation with a limited number of investors that includes Mr. Kaminski. The Company’s stock is thinly traded and accordingly the trading price of
the Company’s stock may not accurately reflect the current value of the Company. As of the date of this Agreement, Mr. Kaminski owned approximately 3.6% of the outstanding voting capital stock of the Company. At the conclusion of the First
Closing, Mr. Kaminski will own approximately 18.6% of the outstanding voting capital stock of the Company on a fully diluted basis, which percentage may increase in the event of subsequent closings or the Second Closing. 

ARTICLE 4. 
 OTHER
AGREEMENTS OF THE PARTIES 
 4.1. Restrictions on Transfer 

(a) Compliance with Law. Shares and Warrants may only be disposed of in compliance with state and federal securities
laws. In connection with any transfer of the Shares or Warrants other than pursuant to an effective registration statement, to the Company, to an Affiliate of an Investor or in connection with a pledge as contemplated in Section 4.1(b),
the Company may require the transferor thereof to provide to the Company an opinion of counsel selected by the transferor, the form and substance of which opinion shall be reasonably satisfactory to the Company, to the effect that such transfer does
not require registration of such transferred Shares or Warrants under the Securities Act. 
 (b) Legends. The
Warrants and certificates evidencing the Shares or any Warrant Shares will contain the following legend, until such time as they are not required under Section 4.1(c): 
 THESE SECURITIES HAVE NOT BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF
1933, AS AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT
SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS AS EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR TO SUCH EFFECT, THE SUBSTANCE OF WHICH SHALL BE REASONABLY
ACCEPTABLE TO THE COMPANY. 
 The Company acknowledges and agrees that an Investor may from time to time pledge, and/or grant a
security interest in some or all of the Shares or Warrants or Warrant Shares, such Investor may transfer pledged or secured Shares or Warrants to the pledgees or secured parties. Such a pledge or transfer would not be subject to approval or
consent of the Company and no legal opinion of legal counsel to the pledgee, secured party or pledgor shall be required in connection with the pledge, but such legal opinion may be required in connection with a

  
 12 

 
subsequent transfer following default by the Investor transferee of the pledge. No notice shall be required of such pledge. Except as otherwise provided in Section 4.1(c), any
Shares or Warrants or Warrant Shares subject to a pledge or security interest as contemplated by this Section 4.1(b) shall continue to bear the legend set forth in this Section 4.1(b) and be subject to the restrictions on transfer set
forth in Section 4.1(a). 
 (c) Legend Removal. Certificates evidencing Shares or Warrant Shares shall not
contain any legend (including the legend set forth in Section 4.1(b)): (i) following a sale or transfer of such Shares or Warrant Shares pursuant to Rule 144 (assuming the transferee is not an Affiliate of the Company), (ii) while
such Shares or Warrant Shares are eligible for sale without volume limitations pursuant to Rule 144; or (iii) while a registration statement covering the resale of such Shares or Warrant Shares is effective under the Securities Act.

4.2. Restrictions on Issuance of Debt. So long as any Shares are outstanding, the Company shall not (i) authorize
or issue, or obligate itself to issue, any debt exceeding, individually or in the aggregate, the principal amount of $50,000 or (ii) effect a public offering or private placement of the debt securities of the Company (or pledge any of the
Company’s intellectual property), in each instance other than commercial bank debt (or with respect to a commercial bank debt), unless prior to such debt issuance (or pledge) the Company has acquired the outstanding Shares held by the Investors
at a price per Share equal to the Liquidation Preference of such Share plus any accrued and unpaid dividends on such Share through and including their redemption hereunder (the “Redemption Price”). For the avoidance of doubt, the
provisions of this Section 4.2 shall terminate upon the redemption of all of the Shares. 
 4.3. Restrictions on
Issuance of Other Securities. Other than Exempt Securities, the Company shall not issue any: (i) equity security ranking senior to, or on parity with, the Series A Preferred Stock as to liquidation, sale or merger preferences,
redemption, dividend rights, with any special voting rights or any other rights, preferences or privileges, (ii) debt exceeding the principal amount of $50,000, other than commercial bank debt or (iii) debt securities of the Company, other
than commercial bank debt (collectively, the securities described in clauses (i), (ii) and (iii), the “New Securities”), unless prior to such issuance the Company has redeemed all, and not less than all, of the outstanding
Shares held by the Investors at a price per Share equal to the Redemption Price. For the avoidance of doubt, the provisions of this Section 4.3 shall terminate upon the redemption of all of the Shares. 

4.4 Use of Proceeds. The Company shall utilize the proceeds of the Investment Amount for general corporate purposes and working
capital of the Company, and shall not distribute any portion of the Investment Amount to the Company’s shareholders as a dividend or repayment of any outstanding shareholder loans of the Company. 

ARTICLE 5. 

CONDITIONS PRECEDENT TO FIRST CLOSING 
 5.1. Conditions Precedent to the Obligations of the Investors to Purchase Initial Units. The obligation of each Investor to acquire Initial Units at the First Closing is subject to the
satisfaction or waiver by such Investor, at or before the First Closing, of each of the following conditions: 

(a) Representations and Warranties. The representations and warranties of the Company contained herein shall be true and
correct in all material respects as of the date when made and as of the First Closing Date as though made on and as of such date; 
 (b) Performance. The Company shall have performed, satisfied and complied in all material respects with all covenants, agreements and conditions required by the Transaction Documents to
be performed, satisfied or complied with by it at or prior to the First Closing; 
 (c) No Injunction or
Action. No statute, rule, regulation, executive order, decree, ruling or injunction shall have been enacted, entered, promulgated or endorsed by any court or governmental authority of competent jurisdiction that prohibits the consummation
of any of the transactions contemplated by the Transaction Documents; and no Action shall have been instituted or threatened against the Company or any Subsidiary, or any of the officers, directors or affiliates of the Company or any Subsidiary
seeking to restrain, prevent or change the transactions contemplated by the Transaction Documents, or seeking damages in connection with such transactions’ 

  
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 (d) Company Deliverables. The Company shall have delivered the Company
Deliverables in accordance with Section 2.2(a); 
 (e) Termination. This Agreement shall not have been
terminated as to such Investor in accordance with Section 9.5; 
 (f) Secretary’s Certificate. The
Company shall have delivered to such Investor a Secretary’s Certificate, dated as of the First Closing Date, as to (i) the matters described in section 2.2(a) above, (ii) the Company’s Certificate of Incorporation and Bylaws,
each as in effect at the First Closing, (iii) the authority and incumbency of the officers of the Company executing the Transaction Documents and any other documents required to be executed or delivered in connection therewith, and
(iv) the matters set forth in Sections 5.1(a), (b), (h) and (gi); 
 (h) Material Adverse Effect. Since the
date hereof there shall have been no Material Adverse Effect with respect to the Company, and no events, facts or circumstances shall have occurred which could reasonably be expected to result, individually or in the aggregate, in a Material Adverse
Effect with respect to the Company; and 
 (i) Amos Kaminski Investment. Solely with respect to the obligation of
Altshuler to acquire (in trust for the benefit of the provident funds and/or pensions managed by it) Initial Units at the First Closing, Amos Kaminski has invested his Investment Amount and purchased his portion of the Units. 

5.2. Conditions Precedent to the Obligations of the Company to Sell Initial Units. The obligation of the Company to sell
Initial Units at the First Closing is subject to the satisfaction or waiver by the Company, at or before the First Closing, of each of the following conditions: 
 (a) Representations and Warranties. The representations and warranties of each Investor contained herein shall be true and correct in all material respects as of the date when made and as
of the First Closing Date as though made on and as of such date; 
 (b) Performance. Each Investor shall have
performed, satisfied and complied in all material respects with all covenants, agreements and conditions required by the Transaction Documents to be performed, satisfied or complied with by such Investor at or prior to the First Closing; 

(c) No Injunction. No statute, rule, regulation, executive order, decree, ruling or injunction shall have been enacted,
entered, promulgated or endorsed by any court or governmental authority of competent jurisdiction that prohibits the consummation of any of the transactions contemplated by the Transaction Documents; and 

(d) Termination. This Agreement shall not have been terminated in accordance with Section 9.5. 

ARTICLE 6. 

SECOND CLOSING 

6.1. Additional Units.
 (a) Second Closing Milestone. No later than 14 days after the date on which the Company has filed with the SEC its quarterly report on Form 10-Q for the fiscal period ending June 30, 2013 (the
financial statements incorporated therein, the “Q2 2013 Financial Statements”), the Company shall deliver to each Investor a written certificate executed by the Chief Financial Officer of the Company as to the total revenues of the
Company for the six months ended June 30, 2013 and the Company’s EBITDA for the six months ended June 30, 2013 as derived from the Q2 2013 Financial Statements (the “Company Certificate”). In the event that, based on
the Q2 2013 Financial Statements and the Company Certificate, as and for the six month period ending June 30, 2013 (i) the Company has total revenues equal to or exceeding $7,000,000.00; and (ii) the Company has EBITDA equal to or
exceeding $750,000.00 (the “Milestone”), then, subject to the satisfaction or waiver of the closing 

  
 14 

 
conditions set forth in Sections 6.3 and 6.4 below (and the other terms and conditioned herein, including Section 9.6 below), the Second Closing shall occur on the date which the later of
(x) the Business Day on which all the conditions set forth in Sections 6.3 and 6.4 hereof are satisfied (or waived) and (y) 30 days after the delivery of the Company Certificate to the Investors (the “Second Closing
Date”). In the event that the Milestone is not achieved for the six month period ending June 30, 2013 as disclosed in the Q2 2013 Financial Statements, the Second Closing shall not occur and the Investors shall not be obligated to
acquire any additional Units, Shares or Warrants of the Company. 
 (c) Second Closing Units. At the Second Closing,
each Investor shall invest its respective Investment Amount (except that Mr. Kaminski shall only invest 50% of his Investment Amount) and the Company shall issue to each Investor that number of Additional Units equal to such Investor’s
Investment Amount divided by the Per Unit Purchase Price, subject to adjustment to reflect any stock splits, subdivision, combination, reorganizations, recapitalizations, substitutions (or any similar transaction) that may have occurred with respect
to the outstanding shares of capital stock of the Company between the First Closing and the Second Closing (the Per Unit Purchase Price as so adjusted, the “Second Closing Price”). 

6.2 Second Closing Deliveries. 
 (a) At the Second Closing, the Company shall deliver or cause to be delivered to each of the Investors (i) a certificate evidencing a number of Additional Shares equal to such Investor’s
Investment Amount divided by the Second Closing Price, registered in the name of such Investor, (ii) Warrants to purchase a number of Warrant Shares equal to such Investor’s Investment Amount divided by the Reference Value, subject to
adjustment to reflect any stock splits, subdivision, combination, reorganizations, recapitalizations, substitutions (or any similar transaction) that may have occurred with respect to the outstanding shares of capital stock of the Company between
the First Closing and the Second Closing (the Reference Value as so adjusted, the “Adjusted Reference Value”), registered in the name of such Investor, with an exercise price per share of Common Stock equal to the Adjusted Reference
Value, (iii) a copy, certified by an officer of the Company, of duly adopted resolutions of the Board of Directors of the Company, substantially in the form of Exhibit 2.2(a)(iii) attached hereto; and (iv) an opinion of counsel to the
Company, substantially in the form of Exhibit 2.2(a)(iv) attached hereto, dated as of the date of the Second Closing, as to the organization, good standing and authority of the Company, the enforceability of the Transaction Documents the
transferability of the Warrant Shares (the “Company Deliverables for Second Closing”). 
 (b) At the
Second Closing, each Investor shall cause to be delivered its Investment Amount for the Second Closing, in United States dollars and in immediately available funds, by wire transfer to an account designated in writing by the Company for such
purpose. 
 6.3. Conditions Precedent to the Obligations of the Investors to Purchase Additional Units. The
obligation of each Investor to acquire Additional Units at the Second Closing is subject to the satisfaction or waiver by such Investor, at or before the Second Closing, of each of the following conditions: 

(a) Representations and Warranties. The representations and warranties of the Company contained herein shall be true and
correct in all material respects as of the date when made and as of the Second Closing Date with the same effect as though made at and as of such date (except those representations and warranties that address matters only as of a specified date,
which shall be true and correct in all respects as of that specified date); 
 (b) Performance. The Company
shall have performed, satisfied and complied in all material respects with all covenants, agreements and conditions required by the Transaction Documents to be performed, satisfied or complied with by it at or prior to the Second Closing;

 (c) No Injunction or Action. No statute, rule, regulation, executive order, decree, ruling or injunction
shall have been enacted, entered, promulgated or endorsed by any court or governmental authority of competent jurisdiction that prohibits the consummation of any of the transactions contemplated by the Transaction Documents; and no Action shall have
been instituted or threatened against the Company or any Subsidiary, or any of the officers, directors or affiliates of the Company or any Subsidiary seeking to restrain, prevent or change the transactions contemplated by the Transaction Documents,
or seeking damages in connection with such transactions. 

  
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 (d) Company Deliverables. The Company shall have delivered the Company
Deliverables in accordance with Section 6.2(a); 
 (e) Termination. This Agreement shall not have been
terminated as to such Investor in accordance with Section 9.5; 
 (f) Secretary’s Certificate. The
Company shall have delivered to such Investor a Secretary’s Certificate, dated as of the Second Closing Date, as to (i) the matters described in section 6.2(a) above, (ii) the Company’s Certificate of Incorporation and Bylaws,
each as in effect at the Second Closing, (iii) the authority and incumbency of the officers of the Company executing any documents required to be executed or delivered in connection with the Second Closing, and (iv) the matters set forth
in Sections 6.3(a), (b), (h) and (i). 
 (h) Material Adverse Effect. Since the First Closing there shall have been
no Material Adverse Effect with respect to the Company, and no events, facts or circumstances shall have occurred which could reasonably be expected to result, individually or in the aggregate, in a Material Adverse Effect with respect to the
Company. 
 (i) Amos Kaminski Investment. Solely with respect to the obligation of Altshuler to acquire (in trust for the
benefit of the provident funds and/or pensions managed by it) the Additional Units at the Second Closing, Amos Kaminski has invested his Investment Amount and purchased his portion of the Additional Units. 

6.4. Conditions Precedent to the Obligations of the Company to Sell Additional Units. The obligation of the Company to
sell Additional Units at the Second Closing is subject to the satisfaction or waiver by the Company, at or before the Second Closing, of each of the following conditions: 
 (a) Representations and Warranties. The representations and warranties of each Investor contained herein shall be true and correct in all material respects as of the date when made and as
of the Second Closing Date with the same effect as though made at and as of such date (except those representations and warranties that address matters only as of a specified date, which shall be true and correct in all respects as of that specified
date); 
 (b) Performance. Each Investor shall have performed, satisfied and complied in all material respects
with all covenants, agreements and conditions required by the Transaction Documents to be performed, satisfied or complied with by such Investor at or prior to the Second Closing; 

(c) No Injunction. No statute, rule, regulation, executive order, decree, ruling or injunction shall have been enacted,
entered, promulgated or endorsed by any court or governmental authority of competent jurisdiction that prohibits the consummation of any of the transactions contemplated by the Transaction Documents; and 

(d) Termination. This Agreement shall not have been terminated in accordance with Section 9.5. 

ARTICLE 7. 

REGISTRATION RIGHTS 
 7.1 Demand Registration Rights 
 (a) Demand Rights. Subject to the
terms set forth herein, at any time after the date hereof until the date on which all of the Warrant Shares are eligible to be resold pursuant to Rule 144 without restriction, each of (x) Investors holding at least twenty percent (20%) of
the then outstanding Shares and (y) Altshuler for as long as it owns Warrant Shares, may request that the Company file a resale shelf registration statement under the Securities Act on Form S-1 or any similar long-form registration (each, a
“Long-Form Registration”) covering the public resale of the Warrant Shares or, if available, on Form S-3 or any similar short-form registration (each, a “Short-Form

  
 16 

 
Registration”), on the terms and conditions set forth in this Section 7.1(a) and in Section 7.1(b). All registrations requested pursuant to this Section 7.1(a) are
referred to herein as “Demand Registrations,” and the Investors requesting a Demand Registration pursuant to the terms hereof are referred to herein as the “Initiating Holders.” Within ten (10) days after
receipt of any such request, the Company shall give written notice of such requested registration to all other Investors holding Warrants or Warrant Shares and, subject to Section 7.1(c) below, shall include in such registration all, and not
less than all, of the Warrant Shares issued or issuable upon exercise of the Warrants. 
 (b) Mandatory Registration.
Notwithstanding any other provision to the contrary (including Section 7.1(a) above), and regardless of whether a Demand Registration has been requested by an Investor, (1) the Company shall be obligated to file a Demand Registration for
all Warrant Shares (which may be exercised under the Warrant as of such date) no later than March 31, 2013; and (2) in the event that the Second Closing occurs, the Company shall be obligated to file a Demand Registration for all
additional Warrant Shares (which may be exercised under the Warrant as of such date) no later than December 31, 2013. 

(c) Timing; Expenses. The Company shall pay all Registration Expenses (as hereinafter defined) in connection with any Demand
Registrations. The Company shall file a registration statement in connection with any Demand Registration with the U.S. Securities and Exchange Commission (the “SEC”) on the later to occur of (i) forty-five
(45) days following its receipt of the Initiating Holder’s valid notice requesting such Demand Registration, and (ii) March 31, 2013; The Company agrees to use all commercially reasonable efforts to (i) cause such
registration statement to be declared effective by the SEC as soon as possible after its filing with the SEC; and (ii) keep such registration statement continuously effective with the SEC for the lesser of (A) until all of the Warrant
Shares are eligible for resale under Rule 144 without restriction, or (B) until all Warrant Shares covered by such registration statement have been sold. 
 (d) Delay. Other than pursuant to Section 7.1(b) above, the Company may postpone for up to ninety (90) days the filing or the effectiveness of a registration statement for a Demand
Registration to the extent the board of directors of the Company in good faith determines that such postponement is necessary in order to avoid premature disclosure of a material financing, acquisition, recapitalization, reorganization or other
material transaction, the disclosure of which would have a materially detrimental effect on the Company. The Company may delay a Demand Registration hereunder only once in any twelve (12) month period. 

(d) Selection of Investment Bank(s). The Company shall have the right to select the investment banker(s) and manager(s) to
administer any Demand Registration, subject to the approval of the holders of a majority of the Warrant Shares, which approval shall not be unreasonably withheld or delayed. 
 (e) Other Registration Rights. The Company may grant rights to other persons to participate in Piggyback Registrations (defined below) so long as such rights are subordinate to the rights of the
holders of Warrant Shares with respect to such Piggyback Registrations as provided in this Section 7.1. The Company shall not, without the prior written consent of the holders of at least 25% of Warrant Shares grant rights to other persons to
make Demand Registrations. 
 7.2. Piggyback Registrations. 

(a) Piggyback Rights. Whenever the Company proposes to register any of its securities under the Securities Act, for its own
account or for the account of any holder of its securities other than Warrant Shares, (other than pursuant to a Demand Registration or a registration on Form S-4 or S-8 or any successor or similar forms) and the registration form to be used may be
used for the registration of Warrant Shares (a “Piggyback Registration”), the Company shall give prompt written notice to all Investors holding Warrants or Warrant Shares of its intention to effect such a registration and
shall include in such registration all Warrant Shares held by or issuable to such Investors with respect to which the Company has received written requests for inclusion therein within fifteen (15) days after receipt of the Company’s
notice. 
 (b) Timing; Expenses. The Company shall pay all Registration Expenses in all Piggyback Registrations (whether
such Registration Expenses are incurred by the Company or the holders of Warrant Shares). The Company agrees to use all commercially reasonable efforts to (i) cause such registration statement to be

  
 17 

 
declared effective by the SEC as soon as possible after its filing with the SEC; and (ii) keep such registration statement continuously effective with the SEC for the lesser of
(A) until all of the Warrant Shares are eligible for resale under Rule 144 without restriction, or (B) until all Warrant Shares covered by such registration statement have been sold. 

(c) Allocation and Cutbacks -Primary Offering. If a Piggyback Registration is an underwritten registration of securities for the
account of the Company, and the managing underwriters advise the Company in writing that, in their opinion, the number of securities requested to be included in such registration exceeds the number which can be sold in an orderly manner in such
offering within a price range acceptable to the Company, the Company shall include in such registration (i) first, the securities the Company proposes to sell, (ii) second, the Warrant Shares held by the Investors, pro rata among
the respective holders thereof on the basis of the amount of Warrant Shares owned by or issuable to each such holder, and (iii) third, any other securities eligible to be included in such registration, pro rata among the holders of such
securities on the basis of the number of shares owned by each such holder. 
 (d) Allocation and Cutbacks- Secondary
Offering. If a Piggyback Registration is an underwritten registration of securities for the account of holders of the Company’s securities, and the managing underwriters advise the Company in writing that, in their opinion, the number of
securities requested to be included in such registration exceeds the number which can be sold in an orderly manner in such offering within the price range of the offering, the Company shall include in such registration (i) first, the securities
the holders of the Company’s securities requesting the registration propose to sell, (ii) second, the Warrant Shares, pro rata among the respective holders thereof on the basis of the amount of Warrant Shares owned by or issuable to
each such holder, and (iii) third, any other securities eligible to be included in such registration, pro rata among the holders of such securities on the basis of the number of shares owned by each such holder. 

(e) Selection of Investment Banker(s). If any Piggyback Registration is an underwritten offering, the selection of investment
banker(s) and manager(s) for the offering shall be made by the Company. 
 7.3. Additional Registration Procedures.

 (a) Company Obligations. In connection with any Demand Registration or Piggyback Registration, the Company shall
use all reasonable commercially reasonable efforts to effect the sale of such Warrant Shares in accordance with the intended method of disposition thereof. The registration statement filed in connection therewith shall (i) be available for the
sale of the Warrant Shares in accordance with the intended method or methods of distribution by the selling holders thereof and (ii) comply as to form in all material respects with the requirements of the applicable form and include all
financial statements required by the SEC to be included therein or if permitted by the rules and forms of the SEC, incorporate such financial statements therein by reference. Before filing a registration statement or prospectus or any amendments or
supplements thereto relating to a Demand Registration or Piggyback Registration, the Company shall furnish to the counsel of each Investor copies of all such documents proposed to be filed, which documents shall be subject to the review and comment
of such counsel. Additionally, the Company shall, as expeditiously as possible: 
 (i) notify each holder of Warrants or
Warrant Shares of the effectiveness of each registration statement filed hereunder; 
 (ii) prepare and file with the SEC such
amendments to any registration statement as may be necessary to keep any such registration statement effective for the period specified in 7.1(b) or 7.2(b); 
 (iii) cause the prospectus to such registration statement to be amended or supplemented as required and to be filed as required by Rule 424 or any similar rule that may be adopted under the
Securities Act; 
 (iv) respond as promptly as practicable to any comments received from the SEC with respect to any
Long-Form or Short-Form Registration statement or any amendment thereto; and 

  
 18 

 (v) comply with the provisions of the Securities Act with respect to the disposition of all
securities covered by such registration statement during the applicable period in accordance with the intended method or methods of distribution by the selling holders thereof. 

(b) Delay. Other than with respect to registration pursuant to Section 7.1(b) above, the Company may delay taking any of the
actions described in clauses (i) through (v) of Section 7.3(a) (i) to the extent that the board of directors of the Company in good faith determines that such delay is necessary in order to avoid premature disclosure of a
material financing, acquisition, recapitalization, reorganization or other material transaction, the disclosure of which would have a materially detrimental effect on the Company; provided, however, that the Company may not exercise
such right of delay for more than sixty days, less the number of days if any such registration statement may have been postponed pursuant to Section 7.1(d) above, with respect to any Demand Registration and it delivers written notice to each
such holder of Warrants and Warrant Shares to such effect or (ii) unless and until the Company has received a written notice (a “Registration Notice”) from such holder that such holder intends to make offers or sales under the
registration statement as specified in such Registration Notice; provided, however, that the Company shall have ten (10) business days to prepare and file any such amendment or supplement after receipt of the Registration Notice
or such longer period as is reasonably necessary if such preparation and filing are not commercially practicable within ten (10) business days. Once a holder has delivered a Registration Notice to the Company, such holder shall promptly provide
to the Company such information as the Company reasonably requests in order to identify such holder and the method of distribution in a post-effective amendment to such registration statement or a supplement to its prospectus. Such holder also shall
notify the Company in writing upon completion of such offer or sale or at such time as such holder no longer intends to make offers or sales under such registration statement. 
 (c) Copies of Filings. The Company shall furnish to each seller of Warrant Shares under a registration statement such number of copies of such registration statement, each amendment and
supplement thereto, the prospectus included in such registration statement (including each preliminary prospectus or supplement), such documents incorporated by reference in such registration statement, and such other documents as such seller may
reasonably request in order to facilitate the disposition of the Warrant Shares owned by or issuable to such seller; 

(d) Notices. The Company shall immediately notify each seller of such Warrant Shares (i) when any amendment or
supplement to the prospectus relating to a registration statement covering the Warrant Shares has been filed with the SEC, (ii) of the issuance by the SEC or any state securities authority of any stop order suspending the effectiveness of the
registration statement or any part thereof or the initiation of any proceedings for that purpose, (iii) if the Company receives any notification with respect to the suspension of the qualification of the Warrant Shares for offer or sale in any
jurisdiction or the initiation of any proceeding for such purpose, and (iv) of the happening of any event during the period the registration statement is effective as a result of which (A) such registration statement contains any untrue
statement of a material fact or omits to state any material fact required to be stated therein or necessary to make the statements therein not misleading or (B) such prospectus as then amended or supplemented contains any untrue statement of a
material fact or omits to state any material fact necessary in order to make the statements therein, in light of the circumstances under which they were made, not misleading; and, the Company shall prepare a supplement or amendment to such
prospectus so that, as thereafter delivered to the purchasers of such Warrant Shares, such registration statement or prospectus shall not contain an untrue statement of a material fact or omit to state any fact necessary to make the statements
therein not misleading; 
 ARTICLE 8. 
 INDEMNIFICATION 
 8.1. Indemnification. 

The Company agrees to indemnify, defend and hold each of the Investors, each of its officers, directors, members, shareholders, partners,
agents (including its legal counsel and independent accountants) and each person controlling such Investor within the meaning of Section 15 of the Securities Act and each person controlling such Investor within the meaning of Section 15 of
the Securities Act (each an “Indemnified Party”), harmless against 

  
 19 

 
any and all damages, costs, liabilities, expenses (including reasonable legal fees and expenses) or losses suffered by such Indemnified Party, as a result of, or in connection with, (i) any
breach or misrepresentation contained in any Transaction Document; or (ii) the failure by the Company to fulfill any obligation, agreement or covenant under any Transaction Documents, or (iii) with respect to any registration been effected
pursuant to Section 7 above, any untrue statement (or alleged untrue statement) of a material fact contained in any registration statement, prospectus, offering circular or other document, or any amendment or supplement thereto, incident to any
such registration, or based on any omission (or alleged omission) to state therein a material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances in which they were made, not misleading, or
any violation by the Company of the Securities Act, the Exchange Act, state securities laws or any rule or regulation promulgated under such laws applicable to the Company in connection with any such registration; or (iv) with a claim that the
Company Intellectual Property violates, infringes, misappropriates or misuses any Intellectual Property rights of any Person; or (v) any cost or expense, including reasonable legal fees, incurred in connection with enforcing the rights of the
Indemnified Party hereunder, including the rights afforded under this Section 8. 
 If the indemnification provided for in
this Section 8(iii) or 8(v) is held by a court of competent jurisdiction to be unavailable to an Indemnified Party with respect to any loss, liability, claim, damage or expense referred to herein, then the Company, in lieu of indemnifying such
Indemnified Party hereunder, shall contribute to the amount paid or payable by Indemnified Party as a result of such loss, liability, claim, damage or expense in such proportion as is appropriate to reflect the relative fault of the Company on the
one hand and of the Indemnified Party on the other hand, in connection with the statements or omissions that resulted in such loss, liability, claim, damage or expense, as well as any other relevant equitable considerations. 

ARTICLE 9. 

MISCELLANEOUS 

9.1. Fees and Expenses. Each party shall pay the fees and expenses of its advisers, counsel, accountants and other
experts, if any, and all other expenses incurred by such party incident to the negotiation, preparation, execution, delivery and performance of the Transaction Documents; provided, however, that the Company shall, upon and subject to
the First Closing, pay the reasonable fees and expenses of Altshuler for legal and other fees and expenses incurred in connection with the transaction contemplated hereby. The Company shall pay all stamp and other taxes and duties levied in
connection with the issuance of the Shares. 
 9.2. Entire Agreement. The Transaction Documents, together with
the Exhibits and Schedules thereto, contain the entire understanding of the parties with respect to the subject matter hereof and supersede all prior agreements, understandings, discussions and representations, oral or written, with respect to such
matters, which the parties acknowledge have been merged into such documents, exhibits and schedules. 

9.3. Notices. Any and all notices or other communications or deliveries required or permitted to be
provided hereunder shall be in writing and shall be deemed given and effective on the earliest of (a) the date of transmission, if such notice or communication is delivered via facsimile (provided the sender receives a machine-generated
confirmation of successful transmission) at the facsimile number specified in this Section prior to 6:30 p.m. (New York City time) on a Trading Day, (b) the next Trading Day after the date of transmission, if such notice or communication is
delivered via facsimile at the facsimile number specified in this Section on a day that is not a Trading Day or later than 6:30 p.m. (New York City time) on any Trading Day, (c) the fifth (5th) Trading Day following the date of mailing, if sent by
internationally recognized overnight courier service, or (d) upon actual receipt by the party to whom such notice is required to be given. The address for such notices and communications shall be as follows: 

 

			
	If to the Company:	  	Marlborough Software Development Holdings Inc.
		  	500 Nickerson Road
		  	Marlborough, MA 01752-4695
		  	Facsimile: (617) 249-0107

  
 20 

			
	With a copy to:	  	Seyfarth Shaw LLP
		  	2 Seaport Lane, Ste. 300
		  	Boston, MA 02210
		  	Facsimile: (617) 946-4801
		  	Attn.: Gregory L. White, Esq.
		
	If to an Investor:	  	To the address set forth under such Investor’s name on the signature pages hereof; or such other address as may be designated in writing hereafter, in the same manner,
by such Person.

 or such other address as may be designated in writing hereafter, in the same manner, by such Person. 

9.4. Amendments; Waivers; No Additional Consideration. No provision of this Agreement may be waived or amended except in
a written instrument signed by the Company and both Investors. No waiver of any default with respect to any provision, condition or requirement of this Agreement shall be deemed to be a continuing waiver in the future or a waiver of any
subsequent default or a waiver of any other provision, condition or requirement hereof, nor shall any delay or omission of either party to exercise any right hereunder in any manner impair the exercise of any such right. No consideration shall
be offered or paid to any Investor to amend or consent to a waiver or modification of any provision of this Agreement unless the same consideration is also offered to all Investors who then hold Shares.

9.5. Termination. This Agreement may be terminated prior to the First Closing: 

(a) by written agreement of the Investors and the Company; and 

(b) by the Company or an Investor (as to itself but no other Investor) upon written notice to the other, if the First Closing shall
not have taken place by 6:30 p.m. Eastern time on the Outside Date; provided, that the right to terminate this Agreement under this Section 9.5(b) shall not be available to any Person whose failure to comply with its obligations under
this Agreement has been the cause of or resulted in the failure of the First Closing to occur on or before such time. 
 In the event of a
termination pursuant to this Section, the Company shall promptly notify all Investors. Upon a termination in accordance with this Section 9.5, the Company and the Investor(s) shall not have any further obligation or liability (including as
arising from such termination) to the other (except with respect to breaches of this Agreement) and no Investor will have any liability to any other Investor under the Transaction Documents as a result therefrom. 

9.6 Limitation on Ownership. 
 (a) Notwithstanding the foregoing terms and conditions of this Agreement, in the event any issuance or sale of Initial Units or Additional Units to an Investor would result in such Investor
(i) acquiring 20% or more of the issued and outstanding equity interests or voting interests in the Company, (ii) having board observer or director or designation rights; (iii) having a right to receive 20% or more of the profits of
the Company; (iv) having a right to receive 20% or more of the residual assets of the Company upon its liquidation; or (v) be an Affiliate of the Company such that it exercises control over the Company within the meaning of the Securities
Act, and such Investor is subject to a contractual, legal or regulatory prohibition against such level of ownership, then such Investor shall not be obligated to purchase, and the Company may not compel the issuance or sale to such Investor, of such
number of Units as would represent the excess of 20% of the issued and outstanding equity interests or voting interests in the Company. 
 (b) Notwithstanding the foregoing terms and conditions of this Agreement, if as a result of any recapitalization, repurchase, restructuring, issuance of New Securities or any other event (other than
solely as a result of the purchase of additional equity or voting interests in the Company by Altshuler not pursuant to the 

  
 21 

 
Transaction Documents), Altshuler, after giving effect to such transaction, would (i) own 20% or more of the issued and outstanding equity interests or voting interests of the Company,
(ii) have board observer or director or designation rights, (iii) have a right to receive 20% or more of the profits of the Company; (iv) have a right to receive 20% or more of the residual assets of the Company upon its liquidation;
or (v) be an Affiliate of the Company such that it exercises control over the Company within the meaning of the Securities Act, then the Company shall be obligated to offer to repurchase from the Investor and cancel, and the Investor may, but
is not required to sell to the Company for cancellation, such number of Units as would represent the excess of 20% of the issued and outstanding equity interests or voting interests or such other means of control in the Company at a price per Unit
equal to the Redemption Price. It is understood and agreed that for all purposes under this Agreement, such repurchase shall be treated as a rescission of the initial issuance of such repurchased and cancelled Units. 

9.7. Construction. The headings herein are for convenience only, do not constitute a part of this Agreement and shall
not be deemed to limit or affect any of the provisions hereof. The language used in this Agreement will be deemed to be the language chosen by the parties to express their mutual intent, and no rules of strict construction will be applied
against any party. 
 This Agreement shall be construed as if drafted jointly by the parties, and no presumption or burden of proof shall arise
favoring or disfavoring any party by virtue of the authorship of any provisions of this Agreement or any of the Transaction Documents. In addition, each and every reference to share prices and shares of Common Stock or Series A Preferred Stock, as
applicable, in any Transaction Document shall be subject to adjustment for reverse and forward stock splits, stock dividends, stock combinations and other similar transactions of the Common Stock or Series A Preferred Stock, as applicable, that
occur after the date of this Agreement. 
 9.8. Successors and Assigns. This Agreement shall be binding upon
and inure to the benefit of the parties and their successors and permitted assigns. The Company may not assign this Agreement or any rights or obligations hereunder without the prior written consent of the Investors. Any Investor may assign any
or all of its rights under this Agreement to any Person to whom such Investor assigns or transfers any Shares, provided such transferee agrees in writing to be bound, with respect to the transferred Shares, by the provisions hereof that apply to the
“Investors.” 
 9.9. No Third-Party Beneficiaries. This Agreement is intended for the benefit of the
parties hereto and their respective successors and permitted assigns and is not for the benefit of, nor may any provision hereof be enforced by, any other Person. 
 9.10. Governing Law. All questions concerning the construction, validity, enforcement and interpretation of this Agreement shall be governed by and construed and enforced in accordance with the
internal laws of the State of New York, without regard to the principles of conflicts of law thereof. Each party agrees that all Actions concerning the interpretations, enforcement and defense of the transactions contemplated by this Agreement and
any other Transaction Documents shall be commenced exclusively in the state or federal courts located in the State of New York. Each party hereto hereby irrevocably waives personal service of process and consents to process being served in any such
Action by mailing a copy thereof via registered or certified mail or overnight delivery (with evidence of delivery) to such party at the address in effect for notices to it under this Agreement and agrees that such service shall constitute good and
sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process in any manner permitted by law. Each party hereto hereby irrevocably waives, to the fullest extent permitted by
applicable law, any and all right to trial by jury in any legal Action arising out of or relating to this Agreement or the transactions contemplated hereby. If either party shall commence an Action to enforce any provisions of a Transaction
Document, then the prevailing party in such Action shall be reimbursed by the other party for its reasonable attorneys’ fees and other costs and expenses incurred with the investigation, preparation and prosecution of such Action. 

9.11. Survival. The representations, warranties, agreements and covenants contained herein shall survive the First
Closing and the Second Closing and the delivery of the Shares. 
 9.12. Execution. This Agreement may be
executed in two or more counterparts, all of which when taken together shall be considered one and the same agreement and shall become effective when counterparts have been signed by each party and delivered to the other party, it being understood
that both parties need not sign the 

  
 22 

 
same counterpart. In the event that any signature is delivered by facsimile transmission, such signature shall create a valid and binding obligation of the party executing (or on whose
behalf such signature is executed) with the same force and effect as if such facsimile signature page were an original thereof. 

9.13. Severability. If any provision of this Agreement is held to be invalid or unenforceable in any respect, the
validity and enforceability of the remaining terms and provisions of this Agreement shall not in any way be affected or impaired thereby and the parties will attempt to agree upon a valid and enforceable provision that is a reasonable substitute
therefor, and upon so agreeing, shall incorporate such substitute provision in this Agreement. 
 9.14. Independent
Nature of Investors’ Obligations and Rights. The obligations of each Investor under any Transaction Document are several and not joint with the obligations of any other Investor, and no Investor shall be responsible in any way for the
performance of the obligations of any other Investor under any Transaction Document. The decision of each Investor to purchase Shares pursuant to the Transaction Documents has been made by such Investor independently of any other
Investor. Nothing contained herein or in any Transaction Document, and no action taken by any Investor pursuant thereto, shall be deemed to constitute the Investors as a partnership, an association, a joint venture or any other kind of entity,
or create a presumption that the Investors are in any way acting in concert or as a group with respect to such obligations or the transactions contemplated by the Transaction Documents. Each Investor acknowledges that no other Investor has
acted as agent for such Investor in connection with making its investment hereunder and that no Investor will be acting as agent of such Investor in connection with monitoring its investment in the Shares or enforcing its rights under the
Transaction Documents. Each Investor shall be entitled to independently protect and enforce its rights, including without limitation the rights arising out of this Agreement or out of the other Transaction Documents, and it shall not be
necessary for any other Investor to be joined as an additional party in any proceeding for such purpose. The Company acknowledges that each of the Investors has been provided with the same Transaction Documents for the purpose of closing a
transaction with multiple Investors and not because it was required or requested to do so by any Investor. 
 [REMAINDER OF PAGE
INTENTIONALLY LEFT BLANK 
 SIGNATURE PAGES FOLLOW] 

  
 23 

 IN WITNESS WHEREOF, the parties hereto have caused this Securities Purchase Agreement to be
duly executed by their respective authorized signatories as of the date first indicated above. 
  

					
	MARLBOROUGH SOFTWARE DEVELOPMENT HOLDINGS INC.
		
	By:	 	 /s/ P. Romik

		 	Name:	 	Pinhas Romik
		 	Title:	 	 President and Chief Executive Officer

 [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK 

SIGNATURE PAGES FOR INVESTORS FOLLOW] 
 Company Signature Page to Securities Purchase Agreement 

 IN WITNESS WHEREOF, the parties hereto have caused this Securities Purchase Agreement to be
duly executed by their respective authorized signatories as of the date first indicated above. 
  

			
	ALTSHULER SHAHAM PROVIDENT FUNDS AND PENSION LTD, FOR THE BENEFIT OF THE PROVIDENT FUNDS AND/OR PENSIONS MANAGED BY IT
		
	By:	 	 /s/ Gilad AltshuLer

		 	Name: Gilad AltshuLer
		 	Title: General Investment Manager
		
	By:	 	 /s/ Yair Lowenstein

		 	Name: Yair Lowenstein
		 	Title: Chief Executive Officer

  

					
		 	 Investment Amount: $ 1,000,000

			
		 	 Tax ID No.:
	 	  

  

			
	ADDRESS FOR NOTICE [intentionally omitted]
		
	c/o:	 	  

			
		
	Street:	 	  

			
		
	City/State/Zip:	 	  

			
		
	Attention:	 	  

			
		
	Tel:	 	  

			
		
	Fax:	 	  

	
	 DELIVERY INSTRUCTIONS
 (if different from above)

		
	c/o:	 	  

			
		
	Street:	 	  

			
		
	City/State/Zip:	 	  

			
		
	Attention:	 	  

			
		
	Tel:	 	  

 Investor Signature Page to Securities Purchase Agreement 

 IN WITNESS WHEREOF, the parties hereto have caused this Securities Purchase Agreement to be
duly executed by their respective authorized signatories as of the date first indicated above. 
  

			
	INVESTOR
	
	 /s/ Amos Kaminski

		
		 	Name: Amos Kaminski

  

					
		 	 Investment Amount: $ 1,000,000

			
		 	 Tax ID No.:
	 	  

  

			
	ADDRESS FOR NOTICE [intentionally omitted]
		
	c/o:	 	  

			
		
	Street:	 	  

			
		
	City/State/Zip:	 	  

			
		
	Attention:	 	  

			
		
	Tel:	 	  : 

			
		
	Fax:	 	  

	
	 DELIVERY INSTRUCTIONS
 (if different from above)

		
	c/o:	 	  

			
		
	Street:	 	  

			
		
	City/State/Zip:	 	  

			
		
	Attention:	 	  

			
		
	Tel:	 	  

 Annex A 
 SCHEDULE OF INVESTORS 
  

			
	(1)	 	(2)
	 Investor
	 	 Address and

Facsimile Number

	Amos Kaminski	 	[intentionally omitted]
		
	Altshuler Shaham Provident Funds and Pension Ltd, in trust for the benefit of the provident funds and/or pensions managed by it	 	[intentionally omitted]

  
 A-1

 EXHIBIT A 

CERTIFICATE OF DESIGNATION 
 [Filed as Exhibit 3.1 to the Current Report on Form 8-K of which this Agreement is a part] 

 EXHIBIT B 

FORM OF WARRANT 

[Filed as Exhibit 10.2 to the Current Report on Form 8-K of which this Agreement is a part] 

 Exhibit 2.2(a)(iii) 

CERTIFIED BOARD RESOLUTIONS 
 Resolutions 
 RESOLVED, that the Board hereby designates 1,940,299 shares
of the Company’s authorized and unissued preferred stock as “6.5% Series A Redeemable Preferred Stock” (the “Series A Preferred Stock”) and fixes the voting powers, designations, preferences and relative, participating,
optional or other special rights, and qualifications, limitations or restrictions thereof, of the shares of such Series A Preferred Stock as set forth set forth in the Certificate of Designation in the form attached hereto as Exhibit A; and
it is further 
 RESOLVED, that the executive officers of the Company be, and each of them hereby is, authorized,
empowered and directed to execute and file the Certificate of Designation with the Secretary of State of the State of Delaware and to take any and all other action as they, in their discretion, may deem necessary, proper or advisable in order to
carry out the intent and to accomplish the purposes of the foregoing resolutions; and it is further 
 RESOLVED, that the
Company be, and hereby is, authorized to undertake an offering (the “Offering”) for the issuance of up to 1,940,299 units (each, a “Unit” and, collectively, the “Units”) at a purchase price of $3.35 per Unit, each Unit
consisting of (a) one (1) share of Series A Preferred Stock and (b) a ten year warrant (the “Warrant”) to purchase five (5) shares (the “Warrant Shares”) of the Company’s common stock, par value $0.01 per share (the
“Common Stock”), at an initial purchase price of $0.67 per share, substantially in the form attached hereto as Exhibit B. Initially, up to 1,044,776 Units may be offered and sold pursuant to the Offering on the terms and conditions
set forth in that certain Securities Purchase Agreement, substantially in the form attached hereto as Exhibit C (the “Purchase Agreement”); and it is further 
 RESOLVED, that the Purchase Agreement be, and hereby is, in all respects authorized, approved, ratified and confirmed, and the Company be, and hereby is, authorized to enter into and perform its
obligations under the Purchase Agreement the Board having determined that it is necessary, desirable and appropriate for the Company to enter into the Purchase Agreement; and it is further 

RESOLVED, that the form of Warrant be, and hereby is, in all respects authorized, approved, ratified and confirmed, and the
Company be, and hereby is, authorized to enter into and perform its obligations under each Warrant to be issued to investors in the Offering pursuant to the Purchase Agreement; and it is further 

RESOLVED, that the executive officers of the Company be, and each of them hereby is, authorized and directed to cause instruments
evidencing ownership of the Series A Preferred Stock and the Warrants to be issued and sold in the Offering to be issued and delivered to the initial investors in the Offering in accordance with the Purchase Agreement; and it is further 

RESOLVED, that the Company hereby reserves for future issuance up to 9,701,495 shares of Common Stock for issuance as Warrant
Shares upon exercise of the Warrants to be offered and sold with the Units in the Offering; and it is further 

RESOLVED, that the executive officers of the Company be, and each of them hereby is, authorized and directed for and on behalf of
the Company and in its name, to prepare or cause to be prepared, execute and file or cause to be filed with the Securities and Exchange Commission (the “Commission”) on or before March 31, 2013, a resale shelf registration statement on any
form of registration statement that the Company is then eligible to use for the registration of securities under the Securities Act of 1933, as amended (the “Registration Statement”), to register the resale by investors in the Offering of
the Warrant Shares issuable to such investors upon exercise of the Warrants, and to file with the Commission, or elsewhere, any such other and additional documents amending, supplementing or otherwise relating to the Registration Statement, and any
required exhibits to the Registration Statement which such executive officer deems necessary or appropriate in connection with the Offering; and it is further 
 RESOLVED, that the executive officers of the Company be, and each of them hereby is, authorized and directed to execute and deliver such other documents and to take such other actions as such
executive officers deems necessary or appropriate in furtherance of the filing of the Registration Statement, and the consummation of the transactions contemplated therewith; and it is further 

RESOLVED, that the executive officers be, and each of them hereby is, authorized, empowered and directed, acting in the name of
and on behalf of the Company, to negotiate, make, execute, perform, acknowledge, verify, issue and delivery all such other agreements, instruments, consents, acknowledgments, waivers, filings and other documents, and to take all other actions, as
may, in each case, in the opinion of such executive officer executing such documents or taking such actions, be necessary, appropriate or advisable, in order to be effectuate the full intent and purpose of all of the foregoing resolutions, such
opinion to be conclusively evidenced by the execution of such documents or the taking of such action by any such executive officer; and it is further 

 RESOLVED, that the Board of Directors hereby adopts and incorporates herein by
reference, the full text of any resolution or resolutions in statutory or regulatory form that may be required by an state or other jurisdictional authority in connection with any such registration or qualification, and the executive officers be,
and each of them hereby is, authorized and empowered to certify to any such state authority that any such form of resolution required by such authority has been adopted; and it is further 

RESOLVED, that the proper officers of the Corporation be, and they hereby are, authorized and directed, in the name and on behalf
of the Corporation, to execute and deliver such other writings and to take such action as may be necessary or which such officer or officers may deem appropriate to carry out the intent of the foregoing resolutions, the execution and delivery or
performance thereof by such officer or officers of the Corporation to be conclusive evidence of the approval by the Corporation of the terms and conditions or the appropriateness thereof.Form of Common Stock Purchase Warrant

 Exhibit 10.2 
 MARLBOROUGH SOFTWARE DEVELOPMENT HOLDINGS, INC. 
 WARRANT
TO PURCHASE COMMON STOCK 
 Warrant No.:      

Number of Shares of Common Stock:              

Date of Issuance: October 10, 2012 (“Issuance Date”) 
 Marlborough Software Development Holdings, Inc., a Delaware corporation (the “Company”), hereby certifies that, for good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, [            ], the registered holder hereof or its permitted assigns (the “Holder”), is entitled, subject to the terms set forth below, to
purchase from the Company, at the Exercise Price (as defined below) then in effect, upon surrender of this Warrant to Purchase Common Stock (including any Warrants to Purchase Common Stock issued in exchange, transfer or replacement hereof pursuant
to the terms hereof, the “Warrant”), at any time or times on or after the Issuance Date, but not after 11:59 p.m., New York time, on the Expiration Date (as defined below),
[            ] (            ) fully paid nonassessable shares of Common Stock (as defined below), which number is subject to
adjustment as set forth herein below (the “Warrant Shares”). Except as otherwise defined herein, capitalized terms in this Warrant shall have the meanings set forth in Section 16. This Warrant is one of a series of
similar warrants to purchase Common Stock issued pursuant to that certain Securities Purchase Agreement (the “Securities Purchase Agreement”) dated as of October 10, 2012 (the “Subscription Date”) and capitalized
terms used herein without definition shall have the meanings ascribed to them in the Securities Purchase Agreement. 
 1.
EXERCISE OF WARRANT. 
 (a) Mechanics of Exercise. Subject to the terms and conditions
hereof, this Warrant may be exercised by the Holder on any day on or after the Issuance Date, in whole or in part, by delivery of a written notice, in the form attached hereto as Exhibit A (the “Exercise Notice”), of the
Holder’s election to exercise this Warrant. The Holder shall not be required to deliver the original Warrant in order to effect an exercise hereunder, but shall deliver the original Warrant within five (5) days thereafter. Execution and
delivery of the Exercise Notice with respect to less than all of the Warrant Shares shall have the same effect as cancellation of the original Warrant and issuance of a new Warrant evidencing the right to purchase the remaining number of Warrant
Shares. On or before the first (1st) Business Day following the date on which the Company has received the Exercise Notice, the Company shall transmit by facsimile an acknowledgment of confirmation of receipt of the Exercise Notice to the
Holder and Computershare Trust Company, N.A., the Company’s transfer Agent (“Transfer Agent”). On or before the third (3rd) Business Day following the date on which the Company has received the Exercise Notice (the “Share
Delivery Date”), the Company shall (X) provided that the Transfer Agent is participating in The Depository Trust Company (“DTC”) Fast Automated Securities Transfer Program, upon the request of the Holder, credit such
aggregate number of Warrant Shares to which the Holder is entitled pursuant to such exercise to the Holder’s or its designee’s 

 
balance account with DTC through its Deposit Withdrawal Agent Commission system, or (Y) if the Transfer Agent is not participating in the DTC Fast Automated Securities Transfer Program, or
if the Registration Statement is not effective at the time this Warrant is exercised, issue and dispatch by overnight courier to the address as specified in the Exercise Notice, a certificate, registered in the Company’s share register in the
name of the Holder or its designee, for the number of shares of Common Stock to which the Holder is entitled pursuant to such exercise. Upon delivery of the Exercise Notice, the Holder shall be deemed for all corporate purposes to have become the
holder of record of the Warrant Shares with respect to which this Warrant has been exercised, irrespective of the date such Warrant Shares are credited to the Holder’s DTC account or the date of delivery of the certificates evidencing such
Warrant Shares, as the case may be. If this Warrant is submitted in connection with any exercise pursuant to this Section 1(a) and the number of Warrant Shares represented by this Warrant submitted for exercise is greater than the number
of Warrant Shares being acquired upon an exercise, then the Company shall as soon as practicable and in no event later than three (3) Business Days after any exercise and at its own expense, issue a new Warrant (in accordance with
Section 7(d)) representing the right to purchase the number of Warrant Shares purchasable immediately prior to such exercise under this Warrant, less the number of Warrant Shares with respect to which this Warrant is exercised. No
fractional shares of Common Stock are to be issued upon the exercise of this Warrant, but rather the number of shares of Common Stock to be issued shall be rounded down to the nearest whole number (with the Company paying cash to the Holder for any
fractional shares resulting from such rounding down). In addition to Section 5(f) of the Certificate of Designation, the Company shall pay any and all issuance or transfer taxes which may be payable by it with respect to the issuance and delivery of
Warrant Shares upon exercise of this Warrant. For the avoidance of doubt, payment of any and all personal tax liabilities of the Holder shall remain the responsibility of the Holder, including without limitation income or capital gains taxes.

 (b) Exercise Price. For purposes of this Warrant, “Exercise Price” means $0.67, subject to
adjustment as provided herein. 
 (c) Company’s Failure to Timely Deliver Securities. If the Company shall fail for
any reason or for no reason to issue to the Holder within three (3) Business Days of receipt of the Exercise Notice in compliance with the terms of this Section 1, a certificate for the number of shares of Common Stock to which the
Holder is entitled and register such shares of Common Stock on the Company’s share register or to credit the Holder’s balance account with DTC for such number of shares of Common Stock to which the Holder is entitled upon the Holder’s
exercise of this Warrant, and if on or after such Trading Day the Holder purchases (in an open market transaction or otherwise) shares of Common Stock to deliver in satisfaction of a sale by the Holder of shares of Common Stock issuable upon such
exercise that the Holder anticipated receiving from the Company (a “Buy-In”), then the Company shall, within three (3) Business Days after the Holder’s request and in the Holder’s discretion, either (i) pay cash
to the Holder in an amount equal to the Holder’s total purchase price (including brokerage commissions, if any) for the shares of Common Stock so purchased (the “Buy-In Price”), at which point the Company’s obligation to
deliver such certificate (and to issue such Warrant Shares) shall terminate, or (ii) promptly honor its obligation to deliver to the Holder a certificate or certificates representing such Warrant Shares and pay cash to the Holder in an amount
equal to the excess (if any) of the Buy-In Price over the product of (A) such number of shares of Common Stock, times (B) the Closing Bid Price on the date of exercise. Except in the event of a Buy-In provided in this Section 1(c), no
provision of this Warrant shall derogate from the Company’s obligation to timely deliver to each Holder a certificate for the number of shares of Common Stock to which the Holder is entitled upon receipt of an Exercise Notice and register such
shares of Common Stock on the Company’s share register or to credit the Holder’s balance account with DTC for such number of shares of Common Stock to which the Holder is entitled. 

  
 - 2 -

 (d) Payment of Exercise Price. The Company shall promptly, and in no case later than
the Business Day immediately following such receipt, confirm receipt of an Exercise Notice via facsimile to the number specified in such Exercise Notice. Within five (5) Trading Days of the date of the Exercise Notice, the Holder shall make
payment to the Company of an amount equal to the applicable Exercise Price multiplied by the number of Warrant Shares as to which this Warrant is being exercised (the “Aggregate Exercise Price”). Such payment shall be made, at the
sole election of the Holder, in cash or by wire transfer of immediately available funds, by surrender of that number of Series A Preferred Shares with an aggregate liquidation preference plus any accrued and unpaid dividends thereon equal to the
Aggregate Exercise Price together with a duly executed stock power (with the Company paying cash to the Holder for any fractional shares resulting from such surrender), by cashless exercise as described below or any combination thereof. 

(e) Cashless Exercise. Notwithstanding anything contained herein to the contrary, the Holder may, in its sole discretion,
exercise this Warrant in whole or in part and, in lieu of making the cash payment otherwise contemplated to be made to the Company upon such exercise in payment of the Aggregate Exercise Price pursuant to paragraph (d) above, elect instead to
receive upon such exercise the “Net Number” of shares of Common Stock determined according to the following formula (a “Cashless Exercise”): 

 

			
		  	X = Y [(A-B)/A]
	where:	  	
		  	X = the Net Number of Warrant Shares to be issued to the Holder.
		
		  	Y = the number of Warrant Shares with respect to which this Warrant is being exercised (as adjusted to the date of such calculation).
		
		  	A = the average of the Closing Bid Prices for the thirty Trading Days immediately prior to (but not including) the Exercise Date.
		
		  	B = the Exercise Price (as adjusted to the date of such calculation).

 (f) Rule 144. For purposes of Rule 144(d) promulgated under the Securities Act, as in effect on
the date hereof, it is intended that the Warrant Shares issued in a Cashless Exercise shall be deemed to have been acquired by the Holder, and the holding period for the Warrant Shares shall be deemed to have commenced, on the date this Warrant was
originally issued pursuant to the Securities Purchase Agreement. 

  
 - 3 -

 (g) Disputes. In the case of a dispute as to the determination of the Exercise Price
or the arithmetic calculation of the Warrant Shares, the Company shall promptly issue to the Holder the number of Warrant Shares that are not disputed. 
 (h) Regulatory Restrictions. Notwithstanding any other provision of this Warrant to the contrary, if as a result of exercise of the Warrant (without taking into account the manner in which the
Aggregate Exercise Price is paid), the Holder would (i) own 20% or more of the issued and outstanding equity interests or voting interests of the Company, (ii) have board observer or director or designation rights, (iii) have a right
to receive 20% or more of the profits of the Company; (iv) have a right to receive 20% or more of the residual assets of the Company upon its liquidation; or (v) be an Affiliate of the Company such that it exercises control over the
Company within the meaning of the Securities Act, then the Company shall be obligated to offer to repurchase from the Holder and cancel, and the Holder may, but is not required to sell to the Company for cancellation, immediately prior to the
issuance of the Warrant Shares to the Holder, such number of Warrant Shares as would represent the excess of 20% of the issued and outstanding equity interests or voting interests or means of control in the Company (after taking into account the
surrender of the Series A Preferred Shares) for a price per Warrant Share equal to the average of the Closing Bid Prices for the thirty Trading Days immediately prior to (but not including) the Exercise Date; provided that in the event that the
Holder owns any Series A Preferred Shares, the Holder shall have used such Series A Preferred Shares to pay for the Aggregate Exercise Price or portion thereof. 
 2. ADJUSTMENT OF EXERCISE PRICE AND NUMBER OF WARRANT SHARES. The Exercise Price and the number of Warrant Shares shall be adjusted from time to time as follows: 

(a) Adjustment upon Subdivision or Combination of Common Stock. If the Company at any time on or after the Subscription Date
subdivides (by any stock split, stock dividend, recapitalization, reorganization, scheme, arrangement or otherwise) one or more classes of its outstanding shares of Common Stock into a greater number of shares, the Exercise Price in effect
immediately prior to such subdivision will be proportionately reduced and the number of Warrant Shares will be proportionately increased. If the Company at any time on or after the Subscription Date combines (by any stock split, stock dividend,
recapitalization, reorganization, scheme, arrangement or otherwise) one or more classes of its outstanding shares of Common Stock into a smaller number of shares, the Exercise Price in effect immediately prior to such combination will be
proportionately increased and the number of Warrant Shares will be proportionately decreased. Any adjustment under this Section 2(a) shall become effective at the close of business on the date the subdivision or combination becomes effective.

 (b) Adjustment for Reclassification, Exchange and Substitution. If the Warrant Shares issuable upon the exercise of
this Warrant are changed into the same or a different number of shares of any class or classes of shares, whether by recapitalization, reclassification or otherwise (other than a subdivision or combination of shares or share dividend, provided for
elsewhere in this Section 2), then and in any such event the Holder shall have the right thereafter to exercise this Warrant into the kind and amount of shares and other securities receivable upon such recapitalization, reclassification or
other change, by holders of the number of shares for which this Warrant might have been exercised immediately prior to such recapitalization, reclassification or change, all subject to further adjustment as provided herein and under the
Company’s organizational documents. 

  
 - 4 -

 (c) Reorganization. If at any time or from time to time there is a capital
reorganization of the shares of the Company (other than a recapitalization, subdivision, combination, reclassification or exchange of shares provided for elsewhere in this Section 2), then, as a part of such reorganization, provision shall be
made so that the Holder shall thereafter be entitled to receive upon exercise of this Warrant, the number of shares or other securities or property of the Company, to which a holder of shares of the Company deliverable upon conversion would have
been entitled on such capital reorganization. 
 (d) Adjustment for Issue or Sale of Common Stock at Less than the Exercise Price. If and
whenever, on or after the date hereof, the Company issues or sells, or in accordance with this Section 2(d) is deemed to have issued or sold, any shares of Common Stock that are not Exempt Securities for a consideration per share less than the
Exercise Price as of the date of such issuance or sale (a “Covered Issuance”), then immediately upon such Covered Issuance or sale, the number of Warrant Shares that may be purchased upon exercise of this Warrant shall be increased
in accordance with the following equation: 
  

			
		  	(A*B-A*C))/(D+C-A)
	where:	  	
		  	A = the number of Warrant Shares for which this Warrant is exercisable prior to the Covered Issuance.
		
		  	B = the aggregate number of shares of Common Stock to be issued in the Covered Issuance.
		
		  	C = the number of shares of Common Stock issuable for the amount raised by the Covered Issuance at a price per share equal to the Exercise Price immediately prior to the Covered
Issuance.
		
		  	D = the sum of (x) the number of shares of Common Stock issued and outstanding prior to the Covered Issuance (for the avoidance of any doubt, such number shall be calculated solely
based on the actual number of shares issued and outstanding and not on a fully diluted basis) and (y) the number of Warrant Shares under this Warrant which have not been exercised as of the date of such Covered Issuance).

 All calculations pursuant to this Section 2(d) shall be rounded to two decimal points.
Notwithstanding the foregoing, the provisions of this Section 2(d) shall terminate and be of no further force or effect upon the earlier to occur of (i) the five year anniversary of the date hereof, (ii) the date on which the Holder
ceases to be a beneficial owner of Series A Preferred Shares as a result of any sale, transfer, redemption event or otherwise; and (iii) the effective date on which the Corporation satisfies both of the following

  
 - 5 -

 
conditions: (a) shares of capital stock of the Corporation are listed on a U.S. national securities exchange registered with the SEC pursuant to Section 6(a) of the Exchange Act, and
(b) the Corporation has a market capitalization of at least $40 million. For the avoidance of doubt, the U.S. national securities exchanges currently registered with the SEC pursuant to Section 6(a) of the Exchange Act are NYSE MKT LLC,
BATS Exchange, Inc., BATS Y-Exchange, Inc., BOX Options Exchange LLC, NASDAQ OMX BX, Inc., C2 Options Exchange, Incorporated, Chicago Board Options Exchange, Incorporated, Chicago Stock Exchange, Inc., EDGA Exchange, Inc., EDGX Exchange, Inc.,
International Securities Exchange, LLC, The Nasdaq Stock Market LLC, National Stock Exchange, Inc., New York Stock Exchange LLC, NYSE Arca, Inc. and NASDAQ OMX PHLX, Inc. 
 (e) Other Events. If any event occurs of the type contemplated by the provisions of this Section 2 but not expressly provided for by such provisions, then the Company’s Board of Directors
will make an appropriate adjustment in the Exercise Price and the number of Warrant Shares so as to protect the rights of the Holder; provided that no such adjustment pursuant to this Section 2(e) will increase the Exercise Price or decrease
the number of Warrant Shares as otherwise determined pursuant to this Section 2. 
 3. [Reserved] 

4. PURCHASE RIGHTS; FUNDAMENTAL TRANSACTIONS. 
 (a) Purchase Rights. In addition to any adjustments pursuant to Section 2 above, if at any time the Company grants, issues or sells any rights to purchase stock, warrants, securities or other
property pro rata to the record holders of any class of shares of Common Stock (the “Purchase Rights”), then the Holder will be entitled to acquire, upon the terms applicable to such Purchase Rights, the aggregate Purchase Rights
which the Holder could have acquired if the Holder had held the number of shares of Common Stock acquirable upon complete exercise of this Warrant (without regard to any limitations on the exercise of this Warrant) immediately before the date on
which a record is taken for the grant, issuance or sale of such Purchase Rights, or, if no such record is taken, the date as of which the record holders of shares of Common Stock are to be determined for the grant, issue or sale of such Purchase
Rights. 
 (b) The Company shall provide the Holder with written notice of any Fundamental Transaction at least 30 days prior
to the consummation of the Fundamental Transaction. In connection with any Fundamental Transaction, the Company shall make appropriate provision so that this Warrant shall thereafter be exercisable for shares of the Successor Entity based upon the
conversion ratio or other consideration payable in the Fundamental Transaction. The provisions of this Section shall apply similarly and equally to successive Fundamental Transactions and shall be applied without regard to any limitations on the
exercise of this Warrant. 
 In the event that any person becomes a Parent Entity of the Company, such person shall assume all
of the obligations of the Company under this Warrant with the same effect as if such person had been named as the Company herein. 

  
 - 6 -

 5. NONCIRCUMVENTION. The Company hereby covenants and agrees that the Company will
not, by amendment of its Certificate of Incorporation, Bylaws or through any reorganization, transfer of assets, consolidation, merger, scheme of arrangement, dissolution, issue or sale of securities, or any other voluntary action, avoid or seek to
avoid the observance or performance of any of the terms of this Warrant, and will at all times in good faith carry out all the provisions of this Warrant and take all action as may be required to protect the rights of the Holder. Without limiting
the generality of the foregoing, the Company (i) shall not increase the par value of any shares of Common Stock receivable upon the exercise of this Warrant above the Exercise Price then in effect, (ii) shall take all such actions as may
be necessary or appropriate in order that the Company may validly and legally issue fully paid and nonassessable shares of Common Stock upon the exercise of this Warrant, and (iii) shall, so long as this Warrant is outstanding, take all action
necessary to reserve and keep available out of its authorized and unissued shares of Common Stock, solely for the purpose of effecting the exercise of this Warrant, 100% of the number of shares of Common Stock issuable upon exercise of this Warrant
then outstanding (without regard to any limitations on exercise). 
 6. WARRANT HOLDER NOT DEEMED A STOCKHOLDER. Except
as otherwise specifically provided herein, the Holder, solely in such Person’s capacity as a holder of this Warrant, shall not be entitled to vote or receive dividends or be deemed the holder of share capital of the Company for any purpose, nor
shall anything contained in this Warrant be construed to confer upon the Holder, solely in such Person’s capacity as the Holder of this Warrant, any of the rights of a stockholder of the Company or any right to vote, give or withhold consent to
any corporate action (whether any reorganization, issue of stock, reclassification of stock, consolidation, merger, conveyance or otherwise), receive dividends or subscription rights, or otherwise, prior to the issuance to the Holder of the Warrant
Shares which such Person is then entitled to receive upon the due exercise of this Warrant; provided that the Holder shall be entitled to receive notice of any stockholders’ meeting in accordance with the DGCL and the Bylaws of the Company and
any other notice provided to stockholders of the Company and the resolutions thereof. In addition, nothing contained in this Warrant shall be construed as imposing any liabilities on the Holder to purchase any securities (upon exercise of this
Warrant or otherwise) or as a stockholder of the Company, whether such liabilities are asserted by the Company or by creditors of the Company. 
 7. REISSUANCE OF WARRANTS. 
 (a) Transfer of Warrant. If this
Warrant is to be transferred, the Holder shall surrender this Warrant to the Company, whereupon the Company will forthwith issue and deliver upon the order of the Holder a new Warrant (in accordance with Section 7(d)), registered as the Holder
may request, representing the right to purchase the number of Warrant Shares being transferred by the Holder and, if less than the total number of Warrant Shares then underlying this Warrant is being transferred, a new Warrant (in accordance with
Section 7(d)) to the Holder representing the right to purchase the number of Warrant Shares not being transferred. 
 (b)
Lost, Stolen or Mutilated Warrant. Upon receipt by the Company of evidence reasonably satisfactory to the Company of the loss, theft, destruction or mutilation of this Warrant, and, in the case of loss, theft or destruction, of any
indemnification undertaking by the Holder to the Company in customary form and, in the case of mutilation, upon surrender and 

  
 - 7 -

 
cancellation of this Warrant, the Company shall execute and deliver to the Holder a new Warrant (in accordance with Section 7(d)) representing the right to purchase the Warrant Shares then
underlying this Warrant. 
 (c) Exchangeable for Multiple Warrants. This Warrant is exchangeable, upon the surrender
hereof by the Holder at the principal office of the Company, for a new Warrant or Warrants (in accordance with Section 7(d)) representing in the aggregate the right to purchase the number of Warrant Shares then underlying this Warrant, and each
such new Warrant will represent the right to purchase such portion of such Warrant Shares as is designated by the Holder at the time of such surrender; provided, however, that no Warrants for fractional shares of Common Stock shall be given.

 (d) Issuance of New Warrants. Whenever the Company is required to issue a new Warrant pursuant to the terms of this
Warrant, such new Warrant (i) shall be of like tenor with this Warrant, (ii) shall represent, as indicated on the face of such new Warrant, the right to purchase the Warrant Shares then underlying this Warrant (or in the case of a new
Warrant being issued pursuant to Section 7(a) or Section 7(c), the Warrant Shares designated by the Holder which, when added to the number of shares of Common Stock underlying the other new Warrants issued in connection with such issuance,
does not exceed the number of Warrant Shares then underlying this Warrant), (iii) shall have an issuance date, as indicated on the face of such new Warrant which is the same as the Issuance Date, and (iv) shall have the same rights and
conditions as this Warrant. 
 8. NOTICES. Whenever notice is required to be given under this Warrant, unless otherwise
provided herein, such notice shall be given in accordance with Section 9.3 of the Securities Purchase Agreement. The Company shall provide the Holder with prompt written notice of all actions taken pursuant to this Warrant, including in
reasonable detail a description of such action and the reason therefore. 
 9. AMENDMENT AND WAIVER. Except as otherwise
provided herein, the provisions of this Warrant may be amended and the Company may take any action herein prohibited, or omit to perform any act herein required to be performed by it, only if the Company has obtained the written consent of the
Holder. 
 10. GOVERNING LAW. This Warrant shall be governed by and construed and enforced in accordance with, and all
questions concerning the construction, validity, interpretation and performance of this Warrant shall be governed by, the internal laws of the State of New York, without giving effect to any choice of law or conflict of law provision or rule
(whether of the State of New York or any other jurisdictions) that would cause the application of the laws of any jurisdictions other than the State of New York. 
 11. CONSTRUCTION; HEADINGS. This Warrant shall be deemed to be jointly drafted by the Company and the Holder and shall not be construed against any person as the drafter hereof. The headings of
this Warrant are for convenience of reference and shall not form part of, or affect the interpretation of, this Warrant. 

  
 - 8 -

 12. DISPUTE RESOLUTION. In the case of a dispute as to the determination of the
Exercise Price or the arithmetic calculation of the Warrant Shares, the Company shall submit the disputed determinations or arithmetic calculations via facsimile within two (2) Business Days of receipt of the Exercise Notice giving rise to such
dispute, as the case may be, to the Holder. If the Holder and the Company are unable to agree upon such determination or calculation of the Exercise Price or the Warrant Shares within three Business Days of such disputed determination or arithmetic
calculation being submitted to the Holder, then the Company shall, within two (2) Business Days submit via facsimile the disputed determination of the Exercise Price to an independent, reputable accountant or investment bank selected by the
Company and approved by the Holder. The Company shall cause at its expense the investment bank or the accountant, as the case may be, to perform the determinations or calculations and notify the Company and the Holder of the results no later than
ten Business Days from the time it receives the disputed determinations or calculations. Such investment bank’s or accountant’s determination or calculation, as the case may be, shall be binding upon all parties absent demonstrable error.

 13. REMEDIES, OTHER OBLIGATIONS, BREACHES AND INJUNCTIVE RELIEF. The remedies provided in this Warrant shall be
cumulative and in addition to all other remedies available under this Warrant, at law or in equity (including a decree of specific performance and/or other injunctive relief), and nothing herein shall limit the right of the Holder to pursue actual
damages for any failure by the Company to comply with the terms of this Warrant. 
 14. TRANSFER. This Warrant may be
offered for sale, sold, transferred or assigned without the consent of the Company. 
 15. WARRANT AGENT. The Company
shall serve as warrant agent under this Warrant. Upon 30 days’ notice to the Holder, the Company may appoint a new warrant agent. Any corporation into which the Company or any new warrant agent may be merged or any corporation resulting
from any consolidation to which the Company or any new warrant agent shall be a party or any corporation to which the Company or any new warrant agent transfers substantially all of its corporate trust or stockholder services business shall be a
successor warrant agent under this Warrant without any further act. Any such successor warrant agent shall promptly cause notice of its succession as warrant agent to be mailed (by first class mail, postage prepaid) to the Holder at the
Holder’s last address as shown on the Warrant Register. 
 16. CERTAIN DEFINITIONS. For purposes of this Warrant,
the following terms shall have the following meanings: 
 (a) “Bloomberg” means Bloomberg Financial Markets.

 (b) “Business Day” means any day other than Saturday, Sunday or other day on which commercial banks in The
City of New York are authorized or required by law to remain closed. 
 (c) “Closing Bid Price” and
“Closing Sale Price” means, for any security as of any date, the last closing bid price and last closing trade price, respectively, for such security on the Principal Market, as reported by Bloomberg, or, if the Principal Market
begins to operate 

  
 - 9 -

 
on an extended hours basis and does not designate the closing bid price or the closing trade price, as the case may be, then the last bid price or the last trade price, respectively, of such
security prior to 4:00:00 p.m., New York time, as reported by Bloomberg, or, if the Principal Market is not the principal securities exchange or trading market for such security, the last closing bid price or last trade price, respectively, of such
security on the principal securities exchange or trading market where such security is listed or traded as reported by Bloomberg, or if the foregoing do not apply, the last closing bid price or last trade price, respectively, of such security in the
over-the-counter market on the electronic bulletin board for such security as reported by Bloomberg, or, if no closing bid price or last trade price, respectively, is reported for such security by Bloomberg, the average of the bid prices, or the ask
prices, respectively, of any market makers for such security as reported in the “pink sheets” by Pink Sheets LLC (formerly the National Quotation Bureau, Inc.). If the Closing Bid Price or the Closing Sale Price cannot be calculated for a
security on a particular date on any of the foregoing bases, the Closing Bid Price or the Closing Sale Price, as the case may be, of such security on such date shall be the fair market value as mutually determined by the Company and the Holder. All
such determinations to be appropriately adjusted for any stock dividend, stock split, stock combination or other similar transaction during the applicable calculation period. 
 (d) “Common Stock” means (i) the Company’s shares of Common Stock, par value $0.01 per share, and (ii) any share capital into which such Common Stock shall have been
changed or any share capital resulting from a reclassification of such Common Stock. 
 (e) “Eligible Market”
means the Principal Market, The New York Stock Exchange, Inc., The NYSE Amex Exchange or The NASDAQ Stock Market. 
 (f)
“Exchange Act” shall mean the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder. 
 (g) “Exempt Securities” as such term is defined in the Securities Purchase Agreement. 
 (h) “Expiration Date” means the date one-hundred and twenty (120) months after the Issuance Date or, if such date falls on a day other than a Business Day or on which trading does
not take place on the Principal Market (a “Holiday”), the next date that is not a Holiday. 
 (i)
“Fundamental Transaction” means that the Company shall, directly or indirectly, in one or more related transactions, (i) consolidate or merge with or into (whether or not the Company is the surviving corporation) another
Person, or (ii) sell, assign, transfer, convey or otherwise dispose of all or substantially all of the properties or assets of the Company to another Person, or (iii) allow another Person to make a purchase, tender or exchange offer that
is accepted by the holders of more than the 50% of the outstanding shares of Common Stock (not including any shares of Common Stock held by the Person or Persons making or party to, or associated or affiliated with the Persons making or party to,
such purchase, tender or exchange offer), or (iv) consummate a stock purchase agreement or other business combination (including, without limitation, a reorganization, recapitalization, spin-off or scheme of arrangement) with another Person
whereby such other Person acquires more than the 50% of the outstanding shares 

  
 - 10 -

 
of Common Stock (not including any shares of Common Stock held by the other Person or other Persons making or party to, or associated or affiliated with the other Persons making or party to, such
stock purchase agreement or other business combination), (v) reorganize, recapitalize or reclassify its Common Stock, or (vi) any “person” or “group” (as these terms are used for purposes of Sections 13(d) and 14(d) of
the Exchange Act) is or shall become the “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of 50% of the aggregate ordinary voting power represented by issued and outstanding Common Stock.

 (j) “Net Consideration Per Share” means the total amount of consideration, if any, received by the Company
for the issuance or sale of Common Stock divided by the aggregate number of shares of Common Stock that would be issued if all such shares Common Stock were issued. 
 (k) “Parent Entity” of a Person means an entity that, directly or indirectly, controls the applicable Person and whose common stock or equivalent equity security is quoted or listed on an
Eligible Market, or, if there is more than one such Person or Parent Entity, the Person or Parent Entity with the largest public market capitalization as of the date of consummation of the Fundamental Transaction. 

(l) “Person” means an individual, a limited liability company, a partnership, a joint venture, a corporation, a trust,
an unincorporated organization, any other entity and a government or any department or agency thereof. 
 (m)
“Principal Market” means FINRA’s over-the-counter bulletin board or such other securities market or national securities exchange on which the Company’s Common Stock may be listed or quoted after the date hereof.

 (n) “Registration Statement” means a registration statement on Form S-1, Form S-3, or such other eligible
registration form as determined in the sole discretion of the Company which registers the resale of the Warrant Shares pursuant to Rule 415 promulgated under the Securities Act. 

(o) “SEC” or “Commission” shall mean the Securities and Exchange Commission. 

(p) “Series A Preferred Shares” means shares of the Company’s 6.5% Series A Redeemable Preferred Stock.

 (q) “Securities Act” means the Securities Act of 1933, as amended. 

(r) “Successor Entity” means the Person (or, if so elected by the Holder, the Parent Entity) formed by, resulting from
or surviving any Fundamental Transaction or the Person (or, if so elected by the Holder, the Parent Entity) with which such Fundamental Transaction shall have been entered into. 

(s) “Trading Day” means any day on which the Common Stock are traded on the Principal Market, or, if the Principal
Market is not the principal trading market for the Common Stock, then on the principal securities exchange or securities market on which the 

  
 - 11 -

 
Common Stock are then traded; provided that “Trading Day” shall not include any day on which the Common Stock are scheduled to trade on such exchange or market for less than 4.5 hours
or any day that the Common Stock are suspended from trading during the final hour of trading on such exchange or market (or if such exchange or market does not designate in advance the closing time of trading on such exchange or market, then during
the hour ending at 4:00:00 p.m., New York time). 
 [Signature Page Follows] 

  
 - 12 -

 IN WITNESS WHEREOF, the Company has caused this Warrant to Purchase Common Stock to
be duly executed as of the Issuance Date set out above. 
  

			
	MARLBOROUGH SOFTWARE DEVELOPMENT HOLDINGS INC.
		
	By:	 	  

	Name:	 	
	Title:	 	

 EXHIBIT A 
 EXERCISE NOTICE 
 TO BE EXECUTED BY THE REGISTERED HOLDER TO EXERCISE
THIS 
 WARRANT TO PURCHASE COMMON STOCK 
 MARLBOROUGH SOFTWARE DEVELOPMENT HOLDINGS, INC. 
 The undersigned holder
hereby exercises the right to purchase             of the shares of Common Stock (“Warrant Shares”) of Marlborough Software Development Holdings, Inc., a Delaware
corporation (the “Company”), evidenced by the attached Warrant to Purchase Common Stock (the “Warrant”). Capitalized terms used herein and not otherwise defined shall have the respective meanings set forth in the
Warrant. 
 1. Form of Exercise Price. The Holder’s payment of the Exercise Price shall be made as: 

 

					
		 		  	a “Cash Exercise” with respect to              Warrant Shares; and/or
			
		 		  	a tender of shares of 6.5% Series A Redeemable Preferred Stock with respect to              Warrant
Shares.
			
		 		  	a “Cashless Exercise” with respect to              Warrant Shares (only if permitted pursuant to
Section 1(e) of the Warrant).

 2. Payment of Exercise Price. In the event that the Holder conducted a Cash Exercise with respect
to some or all of the Warrant Shares to be issued pursuant hereto, the holder shall pay the Aggregate Exercise Price in the sum of $             to the Company in accordance with the terms
of the Warrant. In the event that the Holder is tendering shares of 6.5% Series A Redeemable Preferred Stock with respect to some or all of the Warrant Shares to be issued pursuant hereto, the holder shall pay the Aggregate Exercise Price by
tendering certificates for shares of 6.5% Series A Redeemable Preferred Stock with an aggregate liquidation preference of $             to the Company together with a duly executed stock
power in accordance with the terms of the Warrant. 
 3. Delivery of Warrant Shares. The Company shall deliver to the
Holder              Warrant Shares in accordance with the terms of the Warrant. 
 4. Confirmation. Please send confirmation of receipt of this Exercise Notice to the following facsimile number:
                    . 
 Date:
            ,              
  

			
	  

	Name of Registered Holder
		
	By:	 	  

		 	Name:
		 	Title:

 ACKNOWLEDGMENT 

The Company hereby acknowledges this Exercise Notice and hereby directs American Stock Transfer & Trust Company to issue the
above indicated number of shares of Common Stock in accordance with the Transfer Agent Instructions dated             , 201     from the Company and acknowledged and
agreed to by Computershare Trust Company, N.A. 
  

			
	MARLBOROUGH SOFTWARE DEVELOPMENT HOLDINGS, INC.
		
	By:	 	  

		 	Name:
		 	Title:

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