Document:

Exhibit 10.11

 Exhibit 10.11 
 PRIMUS TELECOMMUNICATIONS GROUP, INCORPORATED 
 MANAGEMENT COMPENSATION PLAN 
 FORM OF NONQUALIFIED STOCK OPTION AGREEMENT 
 THIS NONQUALIFIED STOCK OPTION AGREEMENT (the “Performance Option Agreement”) dated as of July 1, 2009 (the “Grant Date”) is made between Primus Telecommunications Group, Incorporated (the
“Company”) and [                    ] (the “Grantee”). Capitalized terms not defined herein shall have the meanings
ascribed to them in the Management Compensation Plan (the “Plan”). Where the context permits, references to the Company shall include any successor to the Company. 
  

	 	1.	Grant of Performance Option. 

 (a) Number of
Shares; Type of Option. The Company hereby grants to the Grantee an Option (a “Performance Option”) to purchase [            ] shares of Stock (the “Option
Shares”) on the terms and conditions set forth in this Performance Option Agreement.1 The Performance Option is intended to be a nonqualified stock option. The Performance Option shall vest in accordance with the attainment of the applicable percentage of the specified Adjusted EBITDA Targets for any fiscal year during the
term of this Performance Option Agreement. The Adjusted EBITDA Targets for 2009, 2010, and 2011 are set forth in Annex A attached hereto and Adjusted EBITDA shall have the meaning set forth in Annex B attached hereto. The Adjusted EBITDA Targets for
subsequent years shall be determined by the Compensation Committee (the “Committee”) of the Board of Directors of the Company (the “Board”) and ratified by the Board. 
 (b) Incorporation of Plan by Reference, Etc. The Plan is hereby incorporated by reference and made a part hereof, and the Performance Option and
this Performance Option Agreement shall be subject to all terms and conditions of the Plan. 
  

	 	2.	Terms and Conditions. 

 (a) Exercise Price.
The per share exercise price (the “Exercise Price”) for the purchase of Option Shares upon the exercise of all or any portion of the Performance Option shall be equal to the greater of (i) $12.22 and (ii) the Fair Market
Value of a share of Stock on the Grant Date. 
 (b) Term of Performance Option; Expiration Date. Subject to
earlier expiration as provided in Section 2(e) below, the Performance Option shall expire at the close of business on the tenth (10th) anniversary of the Grant Date (the “Expiration Date”). 
 (c) Exercisability of Performance Option. The Performance Option granted to the Grantee hereunder shall become vested and exercisable with respect
to the number of Option Shares specified in clauses (i) and (ii) of this Section 2(c) upon the attainment of the applicable 
  

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	100,000 shares in the aggregate will be reserved under the Management Compensation Plan to fund grants of Performance Options. 

 
percentage of the specified Adjusted EBITDA Targets set forth below, provided that, except as set forth in Section 2(e)(iv)(B) hereof, the
Grantee is employed by the Company or its Subsidiaries on the first day of the fiscal year following the year in which such Adjusted EBITDA Targets are attained. Once vested and exercisable, the Performance Option shall continue to be vested and
exercisable at any time or times prior to the Expiration Date, subject to the provisions hereof and the Plan. 
  

	 	i.	If Adjusted EBITDA for any fiscal year of the Company equals or exceeds 115% of the Adjusted EBITDA Target for such fiscal year (such fiscal year, the “Initial Option
Year”), fifty percent (50%) of the Performance Option shall become vested and exercisable. 

  

	 	ii.	If Adjusted EBITDA for any fiscal year of the Company subsequent to the Initial Option Year equals or exceeds 115% of the Adjusted EBITDA Target for such fiscal year, the remaining
fifty percent (50%) of the Performance Option shall become vested and exercisable. 

 (d) Method of Exercise. The
Exercise Price for any Option Share purchased pursuant to the exercise of all or part of the Performance Option shall be paid in cash. Notwithstanding the foregoing, if the Fair Market Value per share of Stock on the date of exercise equals or
exceeds 150% of the Exercise Price, the Committee may permit payment of the Exercise Price (i) on a net-settlement basis pursuant to which the Company shall withhold the amount of Stock sufficient to cover the Exercise Price and tax withholding
obligation or, (ii) to the extent permitted by applicable law, by means of a cashless exercise procedure through a broker acceptable to the Company. 
 (e) Termination of Employment; Change of Control. 
  

	 	i.	If the Grantee’s employment with the Company and its Subsidiaries terminates because of the Grantee’s death or Disability (as such term is defined in the Grantee’s
employment agreement or separation agreement, or if the Grantee does not have an employment agreement or separation agreement, as such term is defined in the Plan), (A) any unvested portion of the Performance Option shall terminate (without
payment of any consideration therefor) and (B) any vested portion of the Performance Option held by the Grantee as of the date of such termination shall remain exercisable until the earlier of (x) one (1) year following the date of
such termination and (y) the Expiration Date, and the Performance Option shall thereafter terminate (without payment of any consideration therefor). 

  

	 	ii.	If the Grantee’s employment with the Company and its Subsidiaries is terminated for Cause, the Performance Option, whether or not then vested and exercisable, shall terminate
on the date of such termination of employment (without payment of any consideration therefor). 

  

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	 	iii.	Notwithstanding any provision to the contrary in any equity agreement, employment agreement, separation agreement or similar agreement to which the Grantee is a party or to which
the Grantee is entitled to the benefits thereof as of the Grant Date (any of the foregoing, an “Individual Agreement”), upon a Change of Control, (i) any unvested portion of the Performance Option shall immediately terminate and be of
no further force and effect (without payment of any consideration therefor) and (ii) any vested portion of the Performance Option shall remain exercisable until the earlier of (x) one (1) year following the date of such Change of
Control and (y) the Expiration Date, and the Performance Option shall thereafter terminate (without payment of any consideration therefor). The Grantee understands, acknowledges and agrees that any provision set forth in any Individual
Agreement that provides for automatic or accelerated vesting and/or exercisability of stock options, restricted stock, equity grants or other Awards at the time of, or at any time following, the occurrence of a Change of Control (or similar
transaction) or a termination of employment or other event occurring at the time of, or at any time following, the occurrence of a Change of Control (or similar transaction), shall not be applicable to the Performance Option.

  

	 	iv.	In the event that the Grantee’s employment (i) is involuntarily terminated by the Company without Cause (other than on account of death or Disability (as such term is
defined in the Grantee’s employment agreement or separation agreement, or if the Grantee does not have an employment agreement or separation agreement, as such term is defined in the Plan)) or (ii) is terminated by the Grantee for Good
Reason (as such term is defined in the Grantee’s employment agreement, or if the Grantee does not have an employment agreement, as such term is defined in the Plan) or by the Grantee for a Constructive Termination (as such term is defined in
the Grantee’s applicable separation agreement), the following provisions shall apply: 

  

	 	(A)	Any portion of the Performance Option granted to the Grantee that is vested and exercisable as of the date of such termination of employment shall remain exercisable until the
earlier of (x) one (1) year following the date of such termination of employment and (y) the Expiration Date, and the Performance Option shall thereafter terminate (without payment of any consideration therefor); and

  

	 	(B)	 If the Company attains the applicable percentage of the specified Adjusted EBITDA Targets for the fiscal year in which occurred such termination of employment, a
pro-rata portion of the portion of the Performance Option (the “Target Performance Option”) that would have vested had the Grantee remained employed by the Company or any 

  

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Subsidiary through the last day of the fiscal year in which such Adjusted EBITDA Targets are attained (such pro-rata portion of the Target Performance
Option, the “Pro-Rata Performance Option”) shall become vested and exercisable and shall remain vested and exercisable until the earlier of (x) one (1) year following the Measurement Date (as defined below) and
(y) the Expiration Date. The Pro-Rata Performance Option shall be determined by multiplying the number of shares subject to the Target Performance Option by a fraction, the numerator of which shall be the number of days that the Grantee
actually was employed by the Company or any Subsidiary during such fiscal year and the denominator of which shall be 365; and 

  

	 	(C)	Any portion of the Performance Option (other than the Target Performance Option) shall terminate on the date of such termination of employment (without payment of any consideration
therefor) and the Target Performance Option shall remain outstanding until the date on which the Committee determines whether the specified percentage of the applicable Adjusted EBITDA Targets have been attained for the fiscal year in which occurred
such termination of employment (the “Measurement Date”), and thereafter, any Target Performance Option which is not vested and exercisable as of the Measurement Date shall terminate (without payment of any consideration therefor).

  

	 	v.	If the Grantee’s employment with the Company and its Subsidiaries terminates (including by reason of the Subsidiary which employs the Grantee ceasing to be a Subsidiary of the
Company) other than as described in subsections (i), (ii), and (iv) of this Section 2(e), as applicable, (A) any portion of the Performance Option granted to the Grantee that is vested and exercisable as of the date of such
termination of employment shall remain exercisable until the earlier of (x) one (1) year following the date of such termination of employment and (y) the Expiration Date, and the Performance Option shall thereafter terminate (without
payment of any consideration therefor), and (B) any portion of the Performance Option granted to such Grantee which is not vested and exercisable as of the date of such termination of employment shall terminate upon the date of such termination
of employment (without payment of any consideration therefor). 

 (f) Nontransferability. The Performance Option granted
hereunder (including any portion thereof or interest therein) is not transferable by the Grantee otherwise than by will or the laws of descent and distribution, and the Performance Option may be exercised during the lifetime of the Grantee only by
the Grantee or the Grantee’s guardian or legal representative. Any such transfer of the Performance Option in violation of this Section 2(f) shall be void and 

  

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unenforceable against the Company and will result in the immediate termination of the Performance Option (or portion thereof or interest therein). The terms
of the Performance Option shall be binding upon the beneficiaries, executors, administrators, heirs and successors of the Grantee. 
  

	 	3.	Miscellaneous. 

 (a) No Right to Continued
Employment. Nothing in the Plan or in this Performance Option Agreement will confer upon the Grantee any right to continue in the employ of the Company or its Subsidiaries or interfere with or restrict in any way the right of the Company or any
of its Subsidiaries, which is hereby expressly reserved, to remove, terminate or discharge the Grantee at any time for any reason whatsoever, with or without Cause. 
 (b) Authority of the Committee. The Committee shall have full authority to interpret and construe the terms of the Plan and this Performance Option Agreement. The determination of the Committee as to any such
matter of interpretation or construction shall be final, binding and conclusive. 
 (c) Notices. All notices and other communications
under this Performance Option Agreement shall be in writing and shall be given by first class mail, certified or registered with return receipt requested, and shall be deemed to have been duly given three days after mailing to the respective parties
named below: 
  

			
	If to the Company:	  	Primus Telecommunications Group, Incorporated
		  	7901 Jones Branch Drive, Suite 900
		  	McLean, VA 22102
		  	Attention: [                    ]
		
	If to the Grantee:	  	At the address on record with the Company.

 (d) Amendments. This Performance Option Agreement may be amended or modified at any time
only by an instrument in writing signed by each of the parties hereto. 
 (e) Successors. The terms of this Performance Option
Agreement will be binding upon and inure to the benefit of the Company, its successors and assigns, and, subject to Section 2(f) hereof, the beneficiaries, executors, administrators, heirs and successors of the Grantee. 
 (f) Headings. Headings are used solely for the convenience of the parties and shall not be deemed to be a limitation upon or descriptive of the
contents of any such Section. 
 (g) Counterparts. This Performance Option Agreement may be executed in any number of counterparts,
each of which shall be deemed to be an original and all of which together shall be deemed to be one and the same instrument. 
  

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 (h) Governing Law. This Performance Option Agreement shall be governed by and construed according
to the laws of the State of Delaware without regard to its principles of conflict of laws. 
 (i) Acceptance. The Grantee hereby
acknowledges receipt of a copy of the Plan and this Performance Option Agreement. The Grantee has read and understands the terms and provisions thereof, and accepts the Performance Option subject to all the terms and conditions of the Plan and this
Performance Option Agreement. 
 (j) No Rights as a Stockholder. The Grantee shall have no rights of a stockholder (including the
right to distributions or dividends) until the Performance Option shall have been exercised with respect to shares of Stock and such shares have been issued and delivered to the Grantee. 
 [SIGNATURE PAGE FOLLOWS] 
  

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 IN WITNESS WHEREOF, the parties hereto have executed and delivered this Performance Option Agreement on
the day and year first above written. 
  

			
	PRIMUS TELECOMMUNICATIONS GROUP, INCORPORATED
		
	By	 	  

	Name:	 	
	Title:	 	
	
	  

	Grantee

  

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 Annex A 
 Adjusted EBITDA Targets for 2009, 2010, 20112

  

								
	For the Year Ending December 31,
	2009	 	2010	 	2011
	$	66,031,000	 	$	67,055,000	 	$	73,137,000

  

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	These numbers are consistent with the Plan of Reorganization’s Financial Forecast line item “EBITDA (before Restructuring charges)”. 

  

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 Annex B 
 Definition of “Adjusted EBITDA” 
 1. All capitalized terms not defined in this Annex
B shall have the meanings ascribed to them in the “Term Loan Agreement” (as such term is defined in Section 3 below). 
 2. For purposes of this Performance Option Agreement, “Adjusted EBITDA” shall mean “Adjusted EBITDA” as externally reported by Parent in its earnings releases, in a manner consistent with Parent’s past
practices plus, to the extent otherwise deducted in calculating net income during such period, professional fees, costs and expenses incurred in connection with the Proceedings, the confirmation and effectiveness of the Plan of Reorganization and
the related Fresh Start Accounting implementation. Adjusted EBITDA shall be calculated to eliminate the effect of Fresh Start Accounting and to eliminate the effect of any Asset Disposition or Asset Acquisition (including acquisitions of other
Persons by merger, consolidation or purchase of Capital Stock), based upon adjustments calculated by the Parent and such adjustments shall be subject to agreed upon procedures performed by the Parent’s nationally recognized independent
accountants. 
 3. “Term Loan Agreement” shall mean the Term Loan Agreement, dated as of February 18, 2005 and last
amended on July 1, 2009 (as may be further amended, supplemented or otherwise modified from time to time), among Primus Telecommunications Group, Incorporated and Primus Telecommunications Holding, Inc., as Borrower, the several lenders from
time to time parties hereto, Lehman Brothers Inc., as Arranger, Lehman Commercial Paper Inc., as Syndication Agent and Lehman Commercial Paper Inc., as Administrative Agent. 
  

 9SECURITIES PURCHASE
AGREEMENT

     This
Securities Purchase Agreement, dated as of June 29, 2009 (this “Agreement”), is made among
Voxware, Inc., a Delaware corporation (the “Company”), Co-Investment Fund II, L.P.
and Edison Venture Fund V, L.P. (each a “Purchaser” and collectively, the
“Purchasers”) and each assignee of a Purchaser who becomes a party
hereto.

     WHEREAS, subject to the terms and conditions set forth in this
Agreement and pursuant to Section 4(2) of the Securities Act of 1933, as amended
(the “Securities Act”) and Rule 506 of Regulation D promulgated
thereunder, the Company desires to offer, issue and sell to the Purchasers (the
“Offering”), and the Purchasers, severally and not jointly, desire to
purchase from the Company, an aggregate of 1,428,571 shares (the
“Shares”) of the Company’s common stock, par value $0.001 per share (the
“Common Stock”), and three year warrants to purchase shares of Common
Stock (the “Warrants”), with an exercise price per share equal to $2.50.
The Shares and Warrants collectively referred to herein as the
“Securities”.

     NOW, THEREFORE, in consideration of the
mutual covenants and agreements contained in this Agreement, and for other good
and valuable consideration the receipt and adequacy of which are hereby
acknowledged, the Company and each of the Purchasers agree as
follows:

A. Purchase and Sale of
Securities; Closing

     (1) Subject to the conditions to closing set forth herein,
each Purchaser hereby irrevocably agrees to purchase from the Company, and the
Company agrees to sell to each Purchaser, the Securities for the aggregate
purchase price set forth on the signature page of such Purchaser hereto (the
“Subscription Amount”). The Securities to
be issued to each Purchaser hereunder shall consist of (i) Shares in an amount
equal the quotient of (x) such Purchaser’s Subscription Amount, divided by (y)
the Offering Price, rounded down to the nearest whole number, and (ii) a Warrant
to purchase such number of shares of Common Stock to be determined based on a
ratio of one-tenth (0.1) of a share of Common Stock (the “Warrant Shares”) for every one (1) Share of Common Stock purchased
hereunder, rounded down to the nearest whole number. The aggregate Subscription
Amount for the Shares and Warrants shall be $2,500,000.

     (2) For purposes of this Agreement,
the “Offering Price” shall be $1.75.

     (3) As soon
as possible, but no later than three (3) business days after the date on which
the Company receives notice from the NASDAQ Stock Market LLC (the
“NASDAQ”)
that the application for listing of the Shares and Warrant Shares on NASDAQ by
the Company has been accepted and approved, the Company shall hold the closing
of the Offering (the “Closing” and the date of the Closing, the “Closing Date”) at the offices of
Morgan Lewis & Bockius, LLP, 502 Carnegie Center, Princeton, New Jersey
08540. At the Closing, the parties shall deliver the following:

          (a)
the Company shall deliver the following to each Purchaser (the “Company Deliverables”):

              
(i) an irrevocable letter of instruction to the
Company’s transfer agent directing the transfer agent to issue to each Purchaser
a stock certificate representing a number of Shares equal to the number of
Shares being purchased by such Purchaser, registered in the name of such
Purchaser; 

              
(ii) a certificate evidencing the formation and good standing of the
Company issued by the Secretary of State of Delaware as of a date within fifteen
(15) days of the Closing Date; 

              
(iii) a certified copy of the Certificate of Incorporation of the Company
as certified by the Secretary of State of Delaware within fifteen (15) days of
the Closing Date; 

              
(iv) a certificate, executed by the Secretary of the Company and dated as
of the Closing Date as to (i) the resolutions adopted by the Board of Directors
of the Company authorizing the execution, delivery, and performance of this
Agreement and the issuance of the Securities and (ii) the Company’s Bylaws;

              
(v) a Warrant, registered in the name of each Purchaser pursuant to which
such Purchaser shall have the right to acquire the number of Warrant Shares
issuable to such Purchaser pursuant to Section A(1); and 

              
(vi) such other documents relating to the transactions contemplated by
this Agreement as such Purchaser or its counsel may reasonably request.

          (b)
each Purchaser shall deliver the following to the Company (the “Purchaser Deliverables”): 

              
(i) its Subscription Amount, in United States dollars and in immediately
available funds, by wire transfer to the account identified in Schedule A; and 

              
(ii) a completed Confidential Subscriber Questionnaire in the form of
Exhibit B.

     (4) The
obligations of each party to be performed at the Closing are subject to the
following: 

          (a)
The obligation of each Purchaser to acquire the Securities at the Closing is
subject to the satisfaction, or waiver by such Purchaser, of the following:

               (i)
trading in the Common Stock shall not have been suspended (or threatened to be
suspended) by the Commission or the Nasdaq Capital Market (the “Principal Market”); 

               (ii)
the Company shall have delivered the Company Deliverables; and 

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               (iii)
the Company shall have obtained all governmental, regulatory, or third party
consents and approvals, if any, necessary for the sale of the
Securities;

          (b)
The Obligation of the Company to sell the Securities at the Closing is subject
to the satisfaction, or waiver by the Purchaser of the following:

               (i)
each Purchaser shall have delivered the Purchaser Deliverables; and

               (ii)
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 this Agreement.

     (5) In the event the Closing has not
occurred on or before ten (10) business days after the date of this Agreement, a
Purchaser not then in breach of this Agreement may terminate its obligations
under this Agreement without further liability to the Company.

B. Representations and
Warranties of the Purchasers

     Each
Purchaser, severally and not jointly, hereby represents and warrants to the
Company and agrees with the Company as follows:

     (1) The Purchaser has carefully read this Agreement and form
of Warrant attached hereto as Exhibit A (the “Offering
Documents”), and is familiar with and understands the terms of the
Offering. The Purchaser has carefully considered and has discussed with the
Purchaser’s professional legal, tax, accounting and financial advisors, to the
extent the Purchaser has deemed necessary, the suitability of an investment in
the Securities for the Purchaser’s particular tax and financial situation and
has determined that the Securities being subscribed for by the Purchaser are a
suitable investment for the Purchaser. The Purchaser recognizes that an
investment in the Securities involves substantial risks, including the possible
loss of the entire amount of such investment. The Purchaser further recognizes
that the Company has broad discretion concerning the use and application of the
proceeds from the Offering.

     (2) The
Purchaser acknowledges that (i) the Purchaser has had the opportunity to request
copies of any documents, records, and books pertaining to this investment and
(ii) any such documents, records and books that the Purchaser requested have
been made available for inspection by the Purchaser, the Purchaser’s attorney,
accountant or advisor(s).

     (3) The
Purchaser and the Purchaser’s advisor(s) have had a reasonable opportunity to
ask questions of and receive answers from representatives of the Company or
persons acting on behalf of the Company concerning the Offering and all such
questions have been answered to the full satisfaction of the
Purchaser.

     (4) The
Purchaser is not subscribing for Securities as a result of any advertisement,
article, notice or other communication published in any newspaper, magazine or
similar media or broadcast over television or radio or presented at any seminar,
meeting or conference whose attendees have been invited by any general
solicitation or general advertising.

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     (5) If the
Purchaser is a natural person, the Purchaser has reached the age of majority in
the state in which the Purchaser resides. Each Purchaser has adequate means of
providing for the Purchaser’s current financial needs and contingencies, is able
to bear the substantial economic risks of an investment in the Securities for an
indefinite period of time, has no need for liquidity in such investment and can
afford a complete loss of such investment. 

     (6) The
Purchaser has sufficient knowledge and experience in financial, tax and business
matters to enable the Purchaser to utilize the information made available to the
Purchaser in connection with the Offering, to evaluate the merits and risks of
an investment in the Securities and to make an informed investment decision with
respect to an investment in the Securities on the terms described in the
Offering Documents. 

     (7) The
Purchaser will not sell or otherwise transfer the Securities without
registration under the Securities Act, as amended (the “Securities Act”), and
applicable state securities laws or an applicable exemption therefrom. The
Purchaser acknowledges that neither the offer nor sale of the Securities has
been registered under the Securities Act or under the securities laws of any
state. The Purchaser represents and warrants that the Purchaser is acquiring the
Securities for the Purchaser’s own account, for investment and not with a view
toward resale or distribution within the meaning of the Securities Act. The
Purchaser has not offered or sold the Securities being acquired nor does the
Purchaser have any present intention of selling, distributing or otherwise
disposing of such Securities either currently or after the passage of a fixed or
determinable period of time or upon the occurrence or non-occurrence of any
predetermined event or circumstances in violation of the Securities Act. The
Purchaser is aware that (i) the Securities are not currently eligible for sale
in reliance upon Rule 144 promulgated under the Securities Act and (ii) the
Company has no obligation to register the Securities subscribed for hereunder,
except as provided in Section E hereof. By making these representations herein,
Purchaser is not making any representation or agreement to hold the Securities
for any minimum or other specific term and reserves the right to dispose of the
Securities at any time in accordance with or pursuant to an available exemption
to the registration requirements of the Securities Act. 

     (8) The
Purchaser acknowledges that the certificates representing the Shares, the
Warrants and, upon the exercise of the Warrants, the Warrant Shares, shall be
stamped or otherwise imprinted with a legend substantially in the following
form:

The securities represented hereby have not been registered
under the Securities Act of 1933, as amended, or any state securities laws and
neither the securities nor any interest therein may be offered, sold,
transferred, pledged or otherwise disposed of except pursuant to an effective
registration under such act or an exemption from registration, which, in the
opinion of counsel reasonably satisfactory to this corporation, is available.

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     Certificates evidencing the Shares and Warrant Shares shall not be
required to contain such legend or any other legend (i) following any sale of
such Shares or Warrant Shares pursuant to Rule 144, or (ii) if such Shares or
Warrant Shares, have been sold pursuant to a registration statement, (iii) the
Shares or Warrant Shares are eligible for sale under Rule 144(b)(i), (iv) in
connection with a sale, assignment or other transfer (other than under Rule 144)
provided that, upon request of the Company, the Purchaser provides the Company
with an opinion of counsel to such Purchaser, in reasonably acceptable form, to
the effect that such sale, assignment or transfer of the Securities may be made
without registration under the applicable provisions of the Securities Act, or
(v) such legend is not required under applicable requirements of the Securities
Act (including judicial interpretations and pronouncements issued by the Staff
of the Securities and Exchange Commission), in each such case (i) through (iii)
to the extent reasonably determined by the Company’s legal counsel. At such time
and to the extent a legend is no longer required for the Shares or Warrant
Shares, the Company will use its best efforts to no later than five (5) trading
days following the delivery by a Purchaser to the Company or the Company’s
transfer agents of a legended certificate representing such Shares or Warrant
Shares (together with such accompanying documentation or representations as
reasonably required by counsel to the Company), deliver or cause to be delivered
a certificate representing such Shares or Warrant Shares that is free from the
foregoing legend.

     (9) If this
Agreement is executed and delivered on behalf of a partnership, corporation,
trust, estate or other entity: (i) such partnership, corporation, trust, estate
or other entity has the full legal right and power and all authority and
approval required (a) to execute and deliver this Agreement and all other
instruments executed and delivered by or on behalf of such partnership,
corporation, trust, estate or other entity in connection with the purchase of
its Securities, and (b) to purchase and hold such Securities; (ii) the signature
of the party signing on behalf of such partnership, corporation, trust, estate
or other entity is binding upon such partnership, corporation, trust, estate or
other entity; and (iii) such partnership, corporation, trust or other entity has
not been formed for the specific purpose of acquiring such Securities, unless
each beneficial owner of such entity is qualified as an accredited investor
within the meaning of Rule 501(a) of Regulation D promulgated under the
Securities Act and has submitted information to the Company substantiating such
individual qualification. 

     (10) If the
Purchaser is a retirement plan or is investing on behalf of a retirement plan,
the Purchaser acknowledges that an investment in the Securities poses additional
risks, including the inability to use losses generated by an investment in the
Securities to offset taxable income. 

     (11) The
information contained in the purchaser questionnaire in the form of
Exhibit B
attached hereto (the “Purchaser
Questionnaire”) delivered by the Purchaser in
connection with this Agreement is complete and accurate in all respects as of
the date of this Agreement, and the Purchaser is an “accredited investor” as
defined in Rule 501 of Regulation D under the Securities Act on the basis
indicated therein. The Purchaser shall indemnify and hold harmless the Company
and each officer, director or control person thereof, who is or may be a party
or is or may be threatened to be made a party to any threatened, pending or
completed action, suit or proceeding, whether civil, criminal, administrative or
investigative, by reason of or arising from any actual or alleged
misrepresentation or misstatement of facts or omission to represent or state
facts made or alleged to have been made by the Purchaser to the Company or
omitted or alleged to have been omitted by the Purchaser, concerning the
Purchaser or the Purchaser’s authority to invest or financial position in
connection with the Offering, including, without limitation, any such
misrepresentation, misstatement or omission contained in the Agreement or any
other document submitted by the Purchaser, against losses, liabilities and
expenses for which the Company or any officer, director or control person has
not otherwise been reimbursed (including attorney’s fees, judgments, fines and
amounts paid in settlement) actually and reasonably incurred by the Company or
such officer, director or control person in connection with such action, suit or
proceeding. For the avoidance of doubt, such indemnification shall be the
several, and not joint, obligation of each Purchaser with respect to its own
action or inaction as provided above. 

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     (12) The
Purchaser acknowledges that the Company will have the authority to issue shares
of Common Stock, in excess of those being issued in connection with the
Offering, and that the Company may issue additional shares of Common Stock from
time to time. The issuance of additional shares of Common Stock may cause
dilution of the existing shares of Common Stock and a decrease in the market
price of such existing shares. 

     (13) To the
extent that the Purchaser is a resident of the United Kingdom or would otherwise
be subject to the FPO, as defined below, the Purchaser is either a person of a
kind described in Article 19 (Investment Professionals), Article 48 (Certified
High Net Worth Individuals), Article 49 (High Net Worth Companies,
Unincorporated Association etc), and/or Article 50 (Sophisticated Investors) of
the FPO, as presently in effect. “FPO” means Financial Services and
Markets Act 2000 (Financial Promotion) Order 2005 (SI 2005/1529), as amended.

C. Representations and
Warranties of the Company

     The
Company hereby makes the following representations and warranties to the
Purchaser which shall survive the Closing and the purchase and sale of the
Securities.

     (1) Organization, Good Standing and Qualification. The Company is a corporation duly organized, validly existing and in
good standing under the laws of the State of Delaware and has full corporate
power and authority to conduct its business as currently conducted. The Company
is duly qualified to do business as a foreign corporation and is in good
standing in all jurisdictions in which the character of the property owned or
leased or the nature of the business transacted by it makes qualification
necessary, except where the failure to be so qualified would not have a material
adverse effect on the business, properties, prospects, financial condition or
results of operations of the Company (a “Material Adverse Effect”).

     (2) Capitalization. The authorized capital
stock of the Company consists of 12,000,000 shares of Common Stock. As of June
26, 2009, there were 6,566,381 shares of Common Stock and no shares of preferred
stock issued and outstanding. As of June 26, 2009, the Company had reserved
1,305,072 shares of Common Stock for issuance to employees, directors and
consultants pursuant to the Company’s 2003 Stock Incentive Plan, as amended, of
which 1,107,048 shares of Common Stock are subject to outstanding, unexercised options as
of such date, 163,400 shares of Common Stock are subject to outstanding
restricted stock units and the Company has reserved 1,155,474 shares of Common
Stock issuable upon exercise of outstanding Common Stock warrants. Other than as
set forth above or as contemplated in this Agreement, there are no other
options, warrants, calls, rights, commitments or agreements of any character to
which the Company is a party or by which either the Company is bound or
obligating the Company to issue, deliver, sell, repurchase or redeem, or cause
to be issued, delivered, sold, repurchased or redeemed, any shares of the
capital stock of the Company or obligating the Company to grant, extend or enter
into any such option, warrant, call, right, commitment or agreement.

6

     (3) Issuance; Reservation of Shares. The
issuance of the Shares has been duly and validly authorized by all necessary
corporate action, and the Shares, when issued and paid for pursuant to this
Agreement, will be validly issued, fully paid and non-assessable shares of
Common Stock of the Company. The issuance of the Warrants has been duly and
validly authorized by all necessary corporate action, and the Warrant Shares,
when issued upon the due exercise of the Warrants, will be validly issued, fully
paid and non-assessable shares of Common Stock of the Company. The Warrants have
been duly executed by the Company and will constitute a legal, valid and binding
obligation of the Company enforceable against the Company in accordance with its
terms. The Company has reserved, and will reserve, at all times that the
Warrants remain outstanding, such number of shares of Common Stock sufficient to
enable the full exercise of the Warrants. 

     (4) Authorization; Enforceability. The
Company has all corporate right, power and authority to enter into this
Agreement and to consummate the transactions contemplated hereby. All corporate
action on the part of the Company, its directors and stockholders necessary for
the authorization, execution, delivery and performance of this Agreement by the
Company, the authorization, sale, issuance and delivery of the Securities
contemplated herein and the performance of the Company’s obligations hereunder
has been taken. This Agreement has been duly executed and delivered by the
Company and constitutes the legal, valid and binding obligation of the Company,
enforceable against the Company in accordance with its terms and subject to laws
of general application relating to bankruptcy, insolvency and the relief of
debtors and rules of law governing specific performance, injunctive relief or
other equitable remedies, and to limitations of public policy. The issuance and
sale of the Securities contemplated hereby will not give rise to any preemptive
rights or rights of first refusal on behalf of any person.

     (5)
No Conflict; Governmental and Other
Consents.

          (a) The execution and delivery by the Company of this Agreement and the
consummation of the transactions contemplated hereby will not result in the
violation of any law, statute, rule, regulation, order, writ, injunction,
judgment or decree of any court or governmental authority to or by which the
Company is bound, or of any provision of the Certificate of Incorporation or
Bylaws of the Company, and will not conflict with, or result in a breach or
violation of, any of the terms or provisions of, or constitute (with due notice
or lapse of time or both) a default under, any lease, loan agreement, mortgage,
security agreement, trust indenture or other agreement or instrument to which
the Company is a party or by which it is bound or to which any of its properties
or assets is subject, nor result in the creation or imposition of any lien upon
any of the properties or assets of the Company except to the extent that any
such violation, conflict or breach would not be reasonably likely to have a
Material Adverse Effect. No holder of any of the securities of the Company or
any of its subsidiaries has any rights (“demand,” “piggyback” or otherwise) to
have such securities registered by reason of the intention to file, filing or
effectiveness of a registration statement. 

          (b) No consent, approval, authorization or other order of any governmental
authority or other third-party is required to be obtained by the Company in
connection with the authorization, execution and delivery of this Agreement or
with the authorization, issue and sale of the Securities, except such
post-Closing filings as may be required to be made with the Securities and
Exchange Commission (the “SEC”), the NASDAQ and with any state or foreign blue sky or
securities regulatory authority.

7

     (6) Litigation. There are no pending or,
to the Company’s knowledge, threatened legal or governmental proceedings against
the Company, which, if adversely determined, would be reasonably likely to have
a Material Adverse Effect on the Company. There is no action, suit, proceeding,
inquiry or investigation before or by any court, public board or body
(including, without limitation, the SEC) pending or, to the knowledge of the
Company, threatened against or affecting the Company or any of its Subsidiaries
wherein an unfavorable decision, ruling or finding could adversely affect the
validity or enforceability of, or the authority or ability of the Company to
perform its obligations under the Agreements. 

     (7) Accuracy of Reports. All reports
required to be filed by the Company within the two years prior to the date of
this Agreement (the “SEC
Reports”) under the Securities Exchange Act
of 1934, as amended (the “Exchange
Act”), have been filed with the SEC, complied
at the time of filing in all material respects with the requirements of their
respective forms and, except to the extent updated or superseded by any
subsequently filed report, were complete and correct in all material respects as
of the dates at which the information was furnished, and contained (as of such
dates) no untrue statements of a material fact nor omitted to state any material
fact necessary in order to make the statements contained therein, in light of
the circumstances under which they were made, not misleading. 

     (8) Financial Information. The Company’s
financial statements that appear in the SEC Reports have been prepared in
accordance with United States generally accepted accounting principles
(“GAAP”),
except in the case of unaudited statements, as permitted by Form 10-Q of the SEC
or as may be indicated therein or in the notes thereto, applied on a consistent
basis throughout the periods indicated and such financial statements fairly
present in all material respects the financial condition and results of
operations of the Company as of the dates and for the periods indicated
therein.

     (9) Accounting Controls. The Company and
each of its subsidiaries maintains a system of internal accounting controls
sufficient to provide reasonable assurances that (i) transactions are executed
in accordance with management’s general or specific authorization; (ii)
transactions are recorded as necessary to permit preparation of financial
statements in conformity with GAAP and to maintain accountability for assets;
(iii) access to assets is permitted only in accordance with management’s general
or specific authorization; and (iv) the recorded accountability for assets is
compared with existing assets at reasonable intervals and appropriate action is
taken with respect to any differences. 

     (10) Sarbanes-Oxley Act of 2002. The
Company is, and will be, at all times during the period the Company is required
to maintain effectiveness of the Registration Statement as provided herein, in
compliance, in all material respects, with all applicable provisions of the
Sarbanes-Oxley Act of 2002 and all rules and regulations promulgated thereunder
or implementing the provisions thereof that are in effect and is taking
reasonable steps to ensure that it will be in compliance with other applicable
provisions of the Sarbanes-Oxley Act of 2002 not currently in effect upon the
effectiveness of such provisions.

8

     (11) Absence of Certain Changes. Since the
date of the Company’s financial statements in the latest of the SEC Reports,
there has not occurred any undisclosed event that has caused a Material Adverse
Effect or any occurrence, circumstance or combination thereof that reasonably
would be likely to result in such Material Adverse Effect.

     (12) Investment Company. The Company is
not, and is not an Affiliate (as defined in the rules and regulations of the
SEC) of, and immediately following the Closing will not have become, an
“investment company,” and affiliate of an "investment company," a company
controlled by an "investment company" or an "affiliated person" of, or
"promoter" or "principal underwriter" for, and "investment company" within the
meaning of such term under the Investment Company Act of 1940, as amended, and
the rules and regulations of the SEC thereunder. 

     (13) Subsidiaries. To the extent required
under applicable SEC rules, Exhibit 21.1 to the Company’s 2008 Form 10-KSB sets
forth each subsidiary of the Company, showing the jurisdiction of its
incorporation or organization. For the purposes of this Agreement, “subsidiary”
shall mean any company or other entity of which at least 50% of the securities
or other ownership interest having ordinary voting power for the election of
directors or other persons performing similar functions are at the time owned
directly or indirectly by the Company or any of its other subsidiaries.

     (14) Indebtedness. The financial statements
in the SEC Reports reflect, to the extent required, as of the date thereof all
outstanding secured and unsecured Indebtedness (as defined below) of the Company
or any subsidiary, or for which the Company or any subsidiary has commitments.
For purposes of this Agreement, “Indebtedness” shall mean (a) any
liabilities for borrowed money or amounts owed in excess of $50,000 (other than
trade accounts payable incurred in the ordinary course of business), (b) all
guaranties, endorsements and other contingent obligations in respect of
Indebtedness of others, whether or not the same are or should be reflected in
the Company’s balance sheet (or the notes thereto), except guaranties by
endorsement of negotiable instruments for deposit or collection or similar
transactions in the ordinary course of business; and (c) the present value of
any lease payments in excess of $50,000 due under leases required to be
capitalized in accordance with GAAP. Neither the Company nor any subsidiary is
in default with respect to any Indebtedness. 

     (15) Certain Fees. No brokers’, finders’ or
financial advisory fees or commissions will be payable by the Company or any
subsidiary with respect to the transactions contemplated by this Agreement.

9

     (16) Material Agreements. Except as set
forth in the SEC Reports, neither the Company nor any subsidiary is a party to
any written or oral contract, instrument, agreement, commitment, obligation,
plan or arrangement, a copy of which would be required to be filed with the SEC
as an exhibit to Form 10-KSB (each, a “Material Agreement”). The Company and
each of its subsidiaries has in all material respects performed all the
obligations required to be performed by them to date under the foregoing
agreements, have received no notice of default by the Company or the subsidiary
that is a party thereto, as the case may be, and, to the Company’s knowledge,
are not in default under any Material Agreement now in effect, the result of
which would be reasonably likely to have a Material Adverse Effect.

     (17) Transactions with Affiliates. Except
as set forth in the SEC Reports, and covered by this Agreement there are no
loans, leases, agreements, contracts, royalty agreements, management contracts
or arrangements or other continuing transactions between (a) the Company, any
subsidiary or any of their respective customers or suppliers on the one hand,
and (b) on the other hand, any person who would be covered by Item 404(a) of
Regulation S-K or any company or other entity controlled by such person.

     (18) Taxes. The Company and each of the
subsidiaries has prepared and filed all federal, state, local, foreign and other
tax returns for income, gross receipts, sales, use and other taxes and custom
duties (“Taxes”) required by law to be filed by it, except for tax returns, the failure
to file which, individually or in the aggregate, do not and would not have a
Material Adverse Effect on the Company and its subsidiaries taken as a whole.
Such filed tax returns are complete and accurate, except for such omissions and
inaccuracies which, individually or in the aggregate, do not and would not have
a Material Adverse Effect on the Company and its subsidiaries taken as a whole.
The Company and each subsidiary has paid or made provisions for the payment of
all Taxes shown to be due on such tax returns and all additional assessments,
and adequate provisions have been and are reflected in the financial statements
of the Company and the subsidiaries for all current Taxes to which the Company
or any subsidiary is subject and which are not currently due and payable, except
for such Taxes which, if unpaid, individually or in the aggregate, do not and
would not have a Material Adverse Effect on the Company and its subsidiaries,
taken as a whole. None of the federal income tax returns of the Company or any
subsidiary for the past five years has been audited by the Internal Revenue
Service. The Company has not received written notice of any assessments,
adjustments or contingent liability (whether federal, state, local or foreign)
in respect of any Taxes pending or threatened against the Company or any
subsidiary for any period which, if unpaid, would have a Material Adverse Effect
on the Company and the subsidiaries taken as a whole.

     (19) Insurance. The Company and its
subsidiaries are insured by insurers of recognized financial responsibility
against such losses and risks and in such amounts as the Company believes are
prudent and customary in the businesses in which the Company and its
subsidiaries are engaged. Neither the Company nor any of its subsidiaries has
any reason to believe that it will not be able to renew its existing insurance
coverage as and when such coverage expires or to obtain similar coverage from
similar insurers as may be necessary to continue its business without an
increase in cost significantly greater than general increases in cost
experienced for similar companies in similar industries with respect to similar
coverage. 

10

     (20) Environmental Matters. Except as
disclosed in the SEC Reports, all real property owned, leased or otherwise
operated by the Company and its subsidiaries is free of contamination from any
substance, waste or material currently identified to be toxic or hazardous
pursuant to, within the definition of a substance which is toxic or hazardous
under, or which may result in liability under, any Environmental Law (as defined
below), including, without limitation, any asbestos, polychlorinated biphenyls,
radioactive substance, methane, volatile hydrocarbons, industrial solvents, oil
or petroleum or chemical liquids or solids, liquid or gaseous products,
or any other material or substance (“Hazardous Substance”) which has caused or
would reasonably be expected to cause or constitute a threat to human health or
safety, or an environmental hazard in violation of Environmental Law or to
result in any environmental liabilities that would be reasonably likely to have
a Material Adverse Effect. Neither the Company nor any of its subsidiaries has
caused or suffered to occur any release, spill, migration, leakage, discharge,
disposal, uncontrolled loss, seepage, or filtration of Hazardous Substances that
would reasonably be expected to result in environmental liabilities that would
be reasonably likely to have a Material Adverse Effect. The Company and each
subsidiary has generated, treated, stored and disposed of any Hazardous
Substances in compliance with applicable Environmental Laws, except for such
non-compliances that would not be reasonably likely to have a Material Adverse
Effect. The Company and each subsidiary has obtained, or has applied for, and is
in compliance with and in good standing under all permits required under
Environmental Laws (except for such failures that would not be reasonably likely
to have a Material Adverse Effect) and neither the Company nor any of its
subsidiaries has any knowledge of any proceedings to substantially modify or to
revoke any such permit. There are no investigations, proceedings or litigation
pending or, to the Company’s knowledge, threatened against the Company, any of
its subsidiaries or any of the Company’s or its subsidiaries’ facilities
relating to Environmental Laws or Hazardous Substances. “Environmental Laws” shall
mean all federal, national, state, regional and local laws, statutes, ordinances
and regulations, in each case as amended or supplemented from time to time, and
any judicial or administrative interpretation thereof, including orders, consent
decrees or judgments relating to the regulation and protection of human health,
safety, the environment and natural resources.

     (21) Intellectual Property Rights and Licenses. The Company and its subsidiaries own or have the right to use any and
all information, know-how, trade secrets, patents, copyrights, trademarks, trade
names, software, formulae, methods, processes and other intangible properties
that are of a such nature and significance to the business that the failure to
own or have the right to use such items would have a Material Adverse Effect
(“Intangible Rights”). The Company (including its subsidiaries) has not received any notice
that it is in conflict with or infringing upon the asserted intellectual
property rights of others in connection with the Intangible Rights, and, to the
Company’s knowledge, neither the use of the Intangible Rights nor the operation
of the Company’s businesses is infringing or has infringed upon any intellectual
property rights of others. All payments have been duly made that are necessary
to maintain the Intangible Rights in force. No claims have been made, and to the
Company’s knowledge, no claims are threatened, that challenge the validity or
scope of any material Intangible Right of the Company or any of its
subsidiaries. The Company and each of its subsidiaries have taken reasonable
steps to obtain and maintain in force all licenses and other permissions under
Intangible Rights of third parties necessary to conduct their businesses as
heretofore conducted by them, and now being conducted by them, and as expected
to be conducted, and neither the Company nor any of its subsidiaries is or has
been in material breach of any such license or other permission.

     (22)
Labor, Employment and Benefit
Matters.

          (a) There are no existing, or to the best of the Company’s knowledge,
threatened strikes or other labor disputes against the Company or any of its
subsidiaries that would be reasonably likely to have a Material Adverse Effect.
There is no organizing activity involving employees of the Company or any of its
subsidiaries pending or, to the Company’s or its subsidiaries’ knowledge,
threatened by any labor union or group of employees. There are no representation
proceedings pending or, to the Company’s or its subsidiaries’ knowledge,
threatened with the National Labor Relations Board, and no labor organization or
group of employees of the Company or its subsidiaries has made a pending demand
for recognition.

11

          (b) Neither the Company nor any of its subsidiaries is, or during the five
years preceding the date of this Agreement was, a party to any labor or
collective bargaining agreement and there are no labor or collective bargaining
agreements which pertain to employees of the Company or its subsidiaries.

          (c) Each employee benefit plan is in compliance with all applicable law,
except for such noncompliance that would not be reasonably likely to have a
Material Adverse Effect. 

          (d) Neither the Company nor any of its subsidiaries has any liabilities,
contingent or otherwise, including without limitation, liabilities for retiree
health, retiree life, severance or retirement benefits, which are not fully
reflected, to the extent required by GAAP, on the Balance Sheet or fully funded.
The term “liabilities” used in the preceding sentence shall be calculated in
accordance with reasonable actuarial assumptions. 

          (e) None of the Company nor any of its subsidiaries (i) has terminated any
“employee pension benefit plan” as defined in Section 3(2) of ERISA (as defined
below) under circumstances that present a material risk of the Company or any of
its subsidiaries incurring any liability or obligation that would be reasonably
likely to have a Material Adverse Effect, or (ii) has incurred or expects to
incur any outstanding liability under Title IV of the Employee Retirement Income
Security Act of 1974, as amended and all rules and regulations promulgated
thereunder (“ERISA”).

     (23) Compliance with Law. The Company is in
compliance in all material respects with all applicable laws, except for such
noncompliance that would not reasonably be likely to have a Material Adverse
Effect. The Company has not received any notice of, nor does the Company have
any knowledge of, any violation (or of any investigation, inspection, audit or
other proceeding by any governmental entity involving allegations of any
violation) of any applicable law involving or related to the Company which has
not been dismissed or otherwise disposed of that would be reasonably likely to
have a Material Adverse Effect. The Company has not received notice or otherwise
has any knowledge that the Company is charged with, threatened with or under
investigation with respect to, any violation of any applicable law that would
reasonably be likely to have a Material Adverse Effect. Neither the Company nor
any of its subsidiaries nor any employee or agents of the Company or any
subsidiary has made any contribution or other payment to any official of, or
candidate for, any federal, state or foreign office in violation of any law. The
Company and its directors, officers, employees and agents have complied in all
material respects with the Foreign Corrupt Practices Act of 1977, as amended,
and any related rules and regulations. 

     (24) Ownership of Property. Except as set
forth in the Company’s financial statements included in the SEC Reports, each of
the Company and its subsidiaries has (i) good and marketable fee simple title to
its owned real property, if any, free and clear of all liens, except for liens
which do not individually or in the aggregate have a Material Adverse Effect;
(ii) a valid leasehold interest in all leased real property, and each of such
leases is valid and enforceable in accordance with its terms (subject to laws of
general application relating to bankruptcy, insolvency and the relief of debtors
and rules of law governing specific performance, injunctive relief or other
equitable remedies, and to limitations of public policy) and is in full force
and effect, and (iii) good title to, or valid leasehold interests in, all of its
other properties and assets free and clear of all liens, except for liens
disclosed in the SEC Reports or which otherwise do not individually or in the
aggregate have a Material Adverse Effect.

12

     (25) No
Integrated Offering. Assuming the accuracy of
each Purchaser’s representations and warranties set forth in Section B hereof,
neither the Company, nor any of its affiliates or other person acting on the
Company’s behalf has, directly or indirectly, made any offers or sales of any
security or solicited any offers to buy any security under circumstances that
would cause the Offering of the Securities to be integrated with prior offerings
by the Company for purposes of the Securities Act, when integration would cause
the Offering not to be exempt from the requirements of Section 5 of the
Securities Act. 

     (26) Listing and Maintenance Requirements.
Except as otherwise described in the SEC Reports, the Company has not, in the
two years preceding the date hereof, received notice from the Principal Market
to the effect that the Company is not in compliance with the listing or
maintenance requirements thereof. The Company is, and has no reason to believe
that it will not in the foreseeable future continue to be, in compliance with
the listing and maintenance requirements for continued listing of the Common
Stock on the Principal Market. The issuance and sale of the Securities under the
does not contravene the rules and regulations of the Principal Market, and no
approval of the stockholders of the Company thereunder is required for the
Company to issue and deliver to the Purchaser the Securities. 

     (27) General Solicitation. Neither the
Company nor, to its knowledge, any person acting on behalf of the Company, has
offered or sold any of the Securities by any form of “general solicitation”
within the meaning of Rule 502 under the Securities Act. To the knowledge of the
Company, no person acting on its behalf has offered the Securities for sale
other than to the Purchasers and certain other “accredited investors” within the
meaning of Rule 501 under the Securities Act. 

     (28) No
Manipulation of Stock. The Company has not
taken and will not, in violation of applicable law, take, any action designed to
or that might reasonably be expected to cause or result in stabilization or
manipulation of the price of the Common Stock to facilitate the sale or resale
of the Securities. 

     (29) No
Registration. Assuming the accuracy of the
representations and warranties made by, and compliance with the covenants of,
the Purchasers in Section B hereof, no registration of the Securities under the
Securities Act is required in connection with the offer and sale of the
Securities by the Company to the Purchasers as contemplated by this Agreement.

     (30) Form
D. The Company agrees to file one or more
Forms D with respect to the Securities on a timely basis as required under
Regulation D under the Securities Act to claim the exemption provided by Rule 506 of Regulation D and to provide a copy
thereof to the Purchasers promptly after such filing.

13

     (31) Certain Future Financings and Related Actions. The Company will not sell, offer to sell, solicit offers to buy or
otherwise negotiate in respect of any “security” (as defined in the Securities
Act) that is or could be integrated with the sale of the Shares in a manner that
would require the registration of the Securities under the Securities Act.

     (32) Use
of Proceeds. The Company intends that the net
proceeds from the Offering will be used to fund working capital and for other
general corporate purposes.

     (33) Disclosure. The Company understands
and confirms that each of the Purchasers will rely on the foregoing
representations in effecting transactions in securities of the Company. All
disclosure provided by the Company to the Purchasers regarding the Company, its
business and the transactions contemplated hereby furnished by or on the behalf
of the Company are true and correct in all material respects and do not contain
any untrue statement of a material fact or omit to state any material fact
necessary in order to make the statements made therein, in the light of the
circumstances under which they were made, not misleading. To the Company’s
knowledge, no material event or circumstance has occurred or information exists
with respect to the Company or any of its subsidiaries or its or their business,
properties, operations or financial conditions, which, under applicable law,
rule or regulation, requires public disclosure or announcement by the Company
but which has not been so publicly announced or disclosed. 

D. Understandings

     Each of
the Purchasers understands, acknowledges and agrees with the Company as follows:

     (1) No
federal or state agency or authority has made any finding or determination as to
the accuracy or adequacy of the Offering Documents or as to the fairness of the
terms of the Offering nor any recommendation or endorsement of the Securities.
Any representation to the contrary is a criminal offense. In making an
investment decision, Purchasers must rely on their own examination of the
Company and the terms of the Offering, including the merits and risks involved.

     (2) The
Offering is intended to be exempt from registration under the Securities Act by
virtue of Section 4(2) of the Securities Act and the provisions of Rule 506 of
Regulation D thereunder, which is in part dependent upon the truth, completeness
and accuracy of the statements made by the Purchaser herein and in the Purchaser
Questionnaire. 

     (3) There can
be no assurance that the Purchaser will be able to sell or dispose of the
Securities. It is understood that in order not to jeopardize the Offering’s
exempt status under Section 4(2) of the Securities Act and Regulation D, any
transferee may, at a minimum, be required to fulfill the investor suitability
requirements thereunder. 

14

     (4) The
Purchaser acknowledges that the Offering is confidential and non-public and
agrees that all information about the Offering shall be kept in confidence by
the Purchaser until the public announcement of the Offering by the Company. The
Purchaser acknowledges that the foregoing
restrictions on the Purchaser’s use and disclosure of any such confidential,
non-public information contained in the above-described documents restricts the
Purchaser from trading in the Company’s securities to the extent such trading is
on the basis of material, non-public information of which the Purchaser is
aware. Except for the terms of the Offering Documents and the fact that the
Company is considering consummating the transactions contemplated therein, the
Company confirms that neither the Company nor, to its knowledge, any other
person acting on its behalf, has provided any of the Purchasers or their agents
or counsel with any information that constitutes material, non-public
information in connection with this Offering.

     (5) The
Purchaser agrees that beginning on the date hereof until the Offering is
publicly announced by the Company (which the Company has agreed to undertake in
accordance with the provisions of Section F(2) hereof), the Purchaser will not
enter into any Short Sales. For purposes of the foregoing sentence, a
“Short Sale” by a Purchaser means a sale of Common Stock that is marked as a short
sale and that is executed at a time when such Purchaser has no equivalent
offsetting long position in the Common Stock, exclusive of the Shares. For
purposes of determining whether a Purchaser has an equivalent offsetting long
position in the Common Stock, all Common Stock that would be issuable upon
exercise in full of all options then held by such Purchaser (assuming that such
options were then fully exercisable, notwithstanding any provisions to the
contrary, and giving effect to any exercise price adjustments scheduled to take
effect in the future) shall be deemed to be held long by such Purchaser.

     (6) In the
United Kingdom, the Common Stock will only be available for subscription
pursuant to the Offering to persons of a kind described in Article 19
(Investment Professionals), Article 48 (Certified High Net Worth Individuals),
Article 49 (High Net Worth Companies, Unincorporated Association etc), and/or
Article 50 (Sophisticated Investors) of the FPO, as presently in effect, and in
circumstances that will not constitute an offer to the public in the United
Kingdom within the meaning of the EU Prospectus Directive (2003/71/EC), and the
Financial Services and Markets Act 2000, as amended, and the rules and
regulations promulgated thereunder. 

E. Covenants of the Company

     (1) The
Company hereby agrees that, for a period of ninety (90) days after Closing, it
shall not issue or sell any Common Stock of the Company, any warrants or other
rights to acquire Common Stock or any other securities that are convertible into
Common Stock, with the exception of issuances or sales related to a strategic
transaction, pursuant to the exercise of an option, warrant or other right to
acquire Common Stock outstanding as of the date of this Agreement, or to an
employee, director, consultant, supplier, lender or lessor, or any option grant
or issuance. 

     (2) By 5:30
p.m. (New York City time) on the second trading day following the execution of
this Agreement), the Company shall issue press releases disclosing the
transactions contemplated hereby (and the material terms hereof) and the
Closing. On the second trading day following the execution of this Agreement,
the Company will file a Current Report on Form 8-K disclosing the material terms
of the Offering Documents (and attach as exhibits thereto the Offering
Documents), and disclosing the Closing. 

15

     (3) The
Company will indemnify and hold each Purchaser and its directors, officers,
stockholders, partners, employees, members and direct or indirect investors and
any of the foregoing Persons’ agents or other representatives (including,
without limitation, those retained in connection with the transactions
contemplated by this Agreement) (each, an “Purchaser Party”) harmless from any and all
losses, liabilities, obligations, claims, contingencies, damages, costs,
expenses, actions, causes of action, suits, penalties and fees, including all
judgments, amounts paid in settlements, court costs and reasonable out-of-pocket
attorneys’ fees and costs of investigation (collectively, “Losses”) that any such Purchaser Party may suffer or incur as a result of,
arising out of or relating to (a) any misrepresentation, breach or inaccuracy of
any representation, warranty, covenant, obligation or agreement made by the
Company in any Offering Document or (b) any cause of action, suit or claim
brought or made against any Purchaser Party by a third party (including for
these purposes a derivative action brought on behalf of the Company) and arising
out of or resulting from (i) the execution, delivery, performance or enforcement
of the Transaction Documents, or (ii) the status of such Purchaser party or
holder of the Securities as an investor in the Company pursuant to the
transactions contemplated by the Transaction Documents; provided, that an
Purchaser Party shall not be entitled to indemnification to the extent any of
the foregoing is caused by such Purchaser Party’s gross negligence, material
violation of law or regulation or willful misconduct. In addition to the
indemnity contained herein, the Company will reimburse each Purchaser Party for
its reasonable and documented out-of-pocket legal and other expenses (including
the reasonable out-of-pocket cost of any investigation, preparation and travel
in connection therewith) as incurred in connection therewith, as promptly as
practicable after such expenses are incurred and invoiced. 

     (4) The
Company covenants and agrees that neither it nor any of its subsidiaries, or
other Person acting on its or their behalf will provide a Purchaser or its
agents or counsel with any material, non-public information regarding the
Company or its subsidiaries without the prior express consent of the Purchase;
provided,
that no such consent shall be required prior to disclosing any such material,
non-public information to (a) a director of the Company (but only when made to
such director in his or her capacity as a director) or (b) the Purchaser when
such disclosure is required by the express terms of this Agreement. The Company
understands that the Purchaser shall be relying on the foregoing covenant in
effecting transactions in securities of the Company. 

     (5) The
Company shall not sell, offer for sale or solicit offers to buy or otherwise
negotiate in respect of any security (as defined in Section 2 of the Securities
Act) that would be integrated with the offer or sale of the Securities in a
manner that would require the registration under the Securities Act of the sale
of the Securities to the Purchaser, or that would be integrated with the offer
or sale of the Securities for purposes of the rules and regulations of any
trading market in a manner that would require stockholder approval of the sale
of the securities to the Purchasers.

     (6) The
Company shall, no later than ten (10) business days following (i) Closing; and
(ii) receipt by the Company of an affidavit of lost stock certificate from Cross
Atlantic Technology Fund, II. L.P. (in form and substance satisfactory to the
Company’s transfer agent), cause its transfer agent to issue to Cross Atlantic
Technology Fund, II, L.P. a replacement certificate for one hundred seventy-nine
thousand five hundred ten (179,510) shares of the Company’s Common Stock currently owned of record by Cross Atlantic
Technology Fund, II, LP. 

16

     (7) With
a view to making available to the Purchasers the benefits of Rule 144
promulgated under the Securities Act or any other similar rule or regulation of
the Commission that may at any time permit the Purchasers to sell securities of
the Company to the public without registration, the Company agrees to use
reasonable best efforts to: 

            (a) make and keep public information available, as those terms
are understood and defined in Rule 144;

            (b) file with the Commission in a timely manner all reports and
other documents required of the Company under the Securities Act and the
Exchange Act so long as the Company remains subject to such requirements (it
being understood that nothing herein shall limit the Company’s obligations under
the Purchase Agreement) and the filing of such reports and other documents is
required for the applicable provisions of Rule 144; and 

            (c) furnish to each Purchaser so long as such Purchaser owns
Securities, promptly upon request, (i) a written statement by the Company, if
true, that it has complied with the reporting requirements of Rule 144, the
Securities Act and the Exchange Act, (ii) a copy of the most recent annual or
quarterly report of the Company and such other reports and documents so filed by
the Company if such reports are not publicly available via EDGAR, and (iii) such
other information as may be reasonably requested to permit the Holders to sell
such securities pursuant to Rule 144 without registration. 

      (8)
The Company shall not without the prior consent of a Purchaser knowingly enter
into any transaction or take any other action which would create any liability
under Section 16(b) of the Exchange Act, or the rules promulgated thereunder by
the Commission, on the part of such Purchaser as a consequence of having
purchased the Securities under this Agreement or having exercised any Warrants
for Warrant Shares. For purposes of this Section, the Company shall be deemed to
have knowledge of the application to the Company’s actions of Section 16 of the
Exchange Act and the rules promulgated thereunder by the Commission. 

F. Use of Personal Data

     The
Company will collect and use personal information of the Purchaser (A) for the
purposes of (i) its purchase of Securities and the performance of this
Agreement; (ii) the issuance of a certificate representing the Shares and
Warrant Shares in the name of such Purchaser and (iii) the Company’s obligation
to deliver to such Purchaser any notices and other communications that may be
required by the terms of this Agreement or otherwise; and (B) as may be required
by law or other regulatory body. 

     The
Purchaser’s name and address will be included on the Schedule of Purchasers, and
will be publicly filed with the Securities and Exchange Commission. 

     The
Purchaser acknowledges that the Company, and certain other entities to whom
their personal data are disclosed in accordance with the above provisions, are
located in the U.S., whose laws do not give the same level of protection to
personal data as in the European Union (the
“EU’). To
the extent the Company collects the Purchaser’s personal data from an entity or
using equipment in the EU, the Company will take commercially reasonable steps
to ensure that it implements appropriate security measures to protect the
Purchaser’s personal data against unauthorised access and accidental loss and
damage. 

17

     The
Purchaser hereby consents to such disclosure and processing of their personal
information by the Company. 

G. Miscellaneous

     (1) All
pronouns and any variations thereof used herein shall be deemed to refer to the
masculine, feminine, singular or plural, as identity of the person or persons
may require.

     (2) Any
notice or other document required or permitted to be given or delivered to the
Purchasers shall be in writing and sent (a) by fax if the sender on the same day
sends a confirming copy of such notice by an internationally recognized
overnight delivery service (charges prepaid) or (b) by an internationally
recognized overnight delivery service (with charges prepaid): 

          (i) if to the Company, at

               Voxware, Inc. 
               300 American Metro Blvd. 
               Suite
155 
               Hamilton,
New Jersey 08619 
               Fax
No.: 609-514-4103 
               Attention:
Chief Executive Officer 

               or such other address as it shall have specified to the
Purchaser in writing, with a copy (which shall not constitute notice)
to:

               Morgan
Lewis & Bockius, LLP 
               502
Carnegie Center 
               Princeton,
New Jersey 08540 
               Fax
No.: 609-919-6701 
               Attention:
Andrew P. Gilbert, Esq. 

          (ii)
if to the Purchaser, at its address set forth on
the signature page to this Agreement, or such other address as it shall have
specified to the Company in writing. 

     (3) Failure
of the Company to exercise any right or remedy under this Agreement or any other
agreement between the Company and the Purchaser, or otherwise, or delay by the
Company in exercising such right or remedy, will not operate as a waiver
thereof. No waiver by the Company will be effective unless and until it is in
writing and signed by the Company. 

18

     (4) This
Agreement shall be enforced, governed and construed in all respects in
accordance with the laws of the State of New Jersey, as such laws are applied by
the New Jersey courts to agreements entered into
and to be performed in New Jersey by and between residents of New Jersey, and
shall be binding upon the Purchaser, the Purchaser’s heirs, estate, legal
representatives, successors and assigns and shall inure to the benefit of the
Company, its successors and assigns. The Company and each Purchaser hereby
submits to the exclusive jurisdiction of the federal and state courts residing
in the State of New Jersey, and waives any objection to venue with respect to
actions brought in such courts. 

     (5) If any
provision of this Agreement is held to be invalid or unenforceable under any
applicable statute or rule of law, then such provision shall be deemed modified
to conform with such statute or rule of law. Any provision hereof that may prove
invalid or unenforceable under any law shall not affect the validity or
enforceability of any other provisions hereof. 

     (6) The
parties understand and agree that, unless provided otherwise herein, money
damages would not be a sufficient remedy for any breach of the Agreement by the
Company or the Purchaser and that the party against which such breach is
committed shall be entitled to equitable relief, including injunction and
specific performance, as a remedy for any such breach. Such remedies shall not,
unless provided otherwise herein, be deemed to be the exclusive remedies for a
breach by either party of the Agreement but shall be in addition to all other
remedies available at law or equity to the party against which such breach is
committed. 

     (7) The
obligations of each Purchaser under this Agreement are several and not joint
with the obligations of any other Purchaser, and no Purchaser shall be
responsible in any way for the performance of the obligations of any other
Purchaser. The decision of each Purchaser to purchase Securities pursuant to
this Agreement has been made by such Purchaser independently of any other
Investor. Nothing contained herein, and no action taken by any Purchaser
pursuant hereto, shall be deemed to constitute the Purchasers as a partnership,
an association, a joint venture or any other kind of group or entity, or create
a presumption that the Purchasers are in any way acting in concert or as a group
or entity with respect to such obligations or the transactions contemplated by
this Agreement or any other matters, and the Company acknowledges that, to its
knowledge, the Purchaser are not acting in concert or as a group with respect to
such obligations or the transactions contemplated by this Agreement. Each
Purchaser acknowledges that no other Purchaser has acted as agent for such
Purchaser in connection with such Purchaser making its investment hereunder and
that no other Purchaser will be acting as agent of such Purchaser in connection
with monitoring such Purchaser’s investment in the Securities or enforcing its
rights under the Offering Documents. The Company and each Purchaser confirms
that each Purchaser has independently participated with the Company in the
negotiation of the transaction contemplated hereby with the advice of its own
counsel and advisors. Each Purchaser shall be entitled to independently protect
and enforce its rights, including, without limitation, the rights arising out of
this Agreement or out of any other Offering Documents, and it shall not be
necessary for any other Purchaser to be joined as an additional party in any
proceeding for such purpose. The use of a single agreement to effectuate the
purchase and sale of the Securities contemplated hereby was solely in the
control of the Company, not the action or decision of any Investor, and was done
solely for the convenience of the Company and not because it was required or
requested to do so by any Investor. It is expressly understood and agreed that
each provision contained in this Agreement and in each other Offering Document
is between the Company and a Purchaser, solely, and not between the Company and
the Purchasers collectively and not between and among Purchasers. 

19

     (8) Except
as otherwise provided herein, this Agreement may be amended, and compliance with
any provision of this Agreement may be omitted or waived, only by the written
agreement of the Company and the Purchasers (or their permitted transferees)
holding at least a majority of the number of outstanding Shares in the aggregate
sold the Purchasers in this Offering. 

     (9) This
Agreement may be executed in any number of counterparts, each such counterpart
shall be deemed to be an original instrument, and all such counterparts together
shall constitute but one agreement. Facsimile transmission of execution copies
or signature pages for this Agreement shall be legal, valid and binding
execution and delivery for all purposes. 

     (10) This
Agreement, together with the agreements and documents executed and delivered in
connection with this Agreement, constitutes the entire agreement between the
parties hereto with respect to the subject matter hereof. 

H. Signature 

     The
signature page of this Agreement is contained as part of the applicable
subscription package, entitled “Signature Page.” 

* * * * * * * 

20

SIGNATURE PAGE 

     The
Purchaser hereby subscribes for such number of Shares as shall equal the
Subscription Amount as set forth below, divided by the Offering Price, and shall
also receive a Warrant to purchase such number of shares of Common Stock
calculated as set forth in this Agreement, and agrees to be bound by the terms
and conditions of this Agreement. 

PURCHASER 

Total Subscription Amount:
$1,999,999.75 
Total number of Shares: 1,142,857 

Co-Investment Fund II, L.P.

By: Co-Invest Management II, L.P., its
General Partner 
By: Co-Invest II Capital
Partners, Inc., its General Partner 

	/s/ Gerry McCrory, Managing
      Director  		  
	Signature of Subscriber  	  		Signature of
      Joint Purchaser  
	(and
      title, if applicable)  	  		(if
      any)  
	  
	20-3863585  	  		  
	Taxpayer Identification or Social  	 	Taxpayer
      Identification or Social  
	Security Number  	  		Security Number
      of Joint Purchaser (if any)  
	  
	Co-Investment Fund II, L.P. 
    	  		  
	Name
      (please print as name will appear  		  
	on
      stock certificate)  	  		  
	  
	5 Radnor Corporate Center., Suite
      555  		  
	Number
      and Street  	  		  
	  
	100 Matsonford Road  	  		  
	Number
      and Street  	  		  
	  
	Radnor, PA  	19087 		  
	City,
      State  	Zip Code
    		  
	  
	  
	ACCEPTED BY:  	  		  
	  
	VOXWARE, INC.  	  		  
	  
	  
	By:    	/s/ Scott J. Yetter   	  		  
		Name: Scott J.
      Yetter  			
		Title: President
      and CEO  	  		 

SIGNATURE PAGE 

     The
Purchaser hereby subscribes for such number of Shares as shall equal the
Subscription Amount as set forth below, divided by the Offering Price, and shall
also receive a Warrant to purchase such number of shares of Common Stock
calculated as set forth in this Agreement, and agrees to be bound by the terms
and conditions of this Agreement.

PURCHASER 

Total Subscription Amount:
$499,999.50
Total number of Shares: 285,714 

Edison Venture Fund V, L.P.

	/s/ Joseph A. Allegra, 
	  		  
	A General Partner of the General
      Partner  	  		  
	Signature of
      Subscriber  	  		Signature of
      Joint Purchaser  
	(and title, if
      applicable)  	 		(if
      any)  
	 			 
	01-0632445  	  	 	  
	Taxpayer Identification or Social  		Taxpayer
      Identification or Social  
	Security
      Number  	  		Security Number
      of Joint Purchaser (if any)  
	 			
	Edison Venture Fund V,
      L.P.  	  		 
	Name
      (please print as name will appear  	 	  
	on stock
      certificate)  	  		 
	 			
	1009 Lenox Drive  	  		  
	Number and
      Street  	 		  
	 			
	Lawrenceville, NJ  	08648 	 	  
	City,
      State  	Zip Code
    		  
	   	 	 	 
	   			
	
      ACCEPTED BY: 
			
	   			
	
      VOXWARE, INC.
    
			
	   			
	  			

	By: 
    	/s/ Scott J. Yetter  	 
	 	Name: Scott J.
      Yetter 
	  	Title:
      President and CEO  

2

Schedule A 

Wire Transfer Instructions

PLEASE SEND WIRE TRANSFERS TO THE
ACCOUNT AS FOLLOWS: 

		Bank:  		Silicon Valley Bank  
	       	ABA No.:  	       	121140399  
	 	Account #:  	 	3300587325  
		Swift Code:  		SVBKUS6S  
		Account Name:  		Voxware, Inc. 
  

Exhibit A 

Form of Warrant 

 

 

 

 

 

 

 

 

 

 

 

 

A-1 

THIS COMMON STOCK WARRANT HAS NOT
BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR ANY APPLICABLE
STATE SECURITIES LAWS, AND MAY NOT BE SOLD OR TRANSFERRED UNLESS SUCH SALE OR
TRANSFER IS IN ACCORDANCE WITH THE REGISTRATION REQUIREMENTS OF SUCH ACT AND
APPLICABLE LAWS OR SOME OTHER EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF
SUCH ACT AND APPLICABLE LAWS IS AVAILABLE WITH RESPECT THERETO. 

	 	 
	 	 
	Warrant No.
      [      
      ]    	Number of
      Shares: [       ]  
	    	(subject to
      adjustment)  
	Date of
      Issuance: [       ], 2009 
	    
	   	
	Original Issue
      Date (as defined in  	    
	Section 2(a)):
      [      
      ], 2009  	   

Voxware,
Inc. 

Common Stock Purchase
Warrant 

(Void after [      
], 2012) 

     Voxware,
Inc., a Delaware corporation (the “Company”), for value received, hereby
certifies that [__________], or its registered assigns (the “Registered Holder”), is
entitled, subject to the terms and conditions set forth below, to purchase from
the Company, at any time or from time to time on or after the date that is six
(6) months after date of issuance and on or before 5:00 p.m. (Eastern time) on
[____],
2012 (the “Exercise Period”), [__________] shares of Common Stock,
$0.001 par value per share, of the Company (“Common Stock”), at a purchase price
of $2.50
per share. The shares purchasable upon exercise of this Warrant, and the
purchase price per share, each as adjusted from time to time pursuant to the
provisions of this Warrant, are hereinafter referred to as the “Warrant Shares”
and the “Purchase Price,” respectively. This Warrant is one of a series of
Warrants issued by the Company in connection with a private placement of Common
Stock and of like tenor, except as to the number of shares of Common Stock
subject thereto (collectively, the “Company Warrants”).

     1.
Exercise.

          (a) Exercise for Cash. To effect exercises
hereunder, the Registered Holder shall not be required to physically surrender
this Warrant. Execution and delivery via facsimile of the purchase form appended
hereto as Exhibit I (the "Purchase Form") 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. Execution and delivery via facsimile of the Purchase Notice
for all of the Warrant Shares shall have the same effect as cancellation of the
original Warrant after delivery of the Warrant Shares. Upon such delivery of the
attached Purchase Notice to the Company at its address for notice set forth
herein and upon payment of the then-applicable Purchase Price multiplied by the
number of Warrant Shares that the Registered Holder intends to purchase
hereunder, the Company shall on or before the third (3rd) Trading Day after receipt
thereof issue and deliver to the Registered Holder, a certificate for the
Warrant Shares issuable upon such exercise.

A-2 

          (b) Exercise Date. Each exercise of this
Warrant shall be deemed to have been effected immediately prior to the close of
business on the day on which this Warrant shall have been surrendered to the
Company as provided in Section 1(a) above (the “Exercise Date”). At such time,
the person or persons in whose name or names any certificates for Warrant Shares
shall be issuable upon such exercise as provided in Section 1(c) below shall be
deemed to have become the holder or holders of record of the Warrant Shares
represented by such certificates. 

     2.
Adjustments. 

          (a) Adjustment for Stock Splits and Combinations. If the Company shall at any time or from time to time after the date on
which this Warrant was first issued (or, if this Warrant was issued upon partial
exercise of, or in replacement of, another warrant of like tenor, then the date
on which such original warrant was first issued) (the “Original Issue Date”)
effect a subdivision of the outstanding Common Stock, the Purchase Price then in
effect immediately before that subdivision shall be proportionately decreased.
If the Company shall at any time or from time to time after the Original Issue
Date combine the outstanding shares of Common Stock, the Purchase Price then in
effect immediately before the combination shall be proportionately increased.
Any adjustment under this paragraph shall become effective at the close of
business on the date the subdivision or combination becomes
effective.

          (b) Adjustment for Certain Dividends and Distributions. In the event the Company at any time, or from time to time
after the Original Issue Date shall make or issue, or fix a record date for the
determination of holders of Common Stock entitled to receive, a dividend or
other distribution payable in additional shares of Common Stock, then and in
each such event the Purchase Price then in effect immediately before such event
shall be decreased as of the time of such issuance or, in the event such a
record date shall have been fixed, as of the close of business on such record
date, by multiplying the Purchase Price then in effect by a fraction:

               (1) the numerator of which shall be the total number of shares of Common
Stock issued and outstanding immediately prior to the time of such issuance or
the close of business on such record date, and 

               (2) the denominator of which shall be the total number of shares of Common
Stock issued and outstanding immediately prior to the time of such issuance or
the close of business on such record date plus the number of shares of Common
Stock issuable in payment of such dividend or distribution; provided, however, that if such
record date shall have been fixed and such dividend is not fully paid or if such
distribution is not fully made on the date fixed therefor, the Purchase Price
shall be recomputed accordingly as of the close of business on such record date
and thereafter the Purchase Price shall be adjusted pursuant to this paragraph
as of the time of actual payment of such dividends or distributions. 

Simultaneously with any adjustment to
the Purchase Price pursuant to Sections 2(a) and 2(b), the number of Warrant
Shares which may be purchased upon exercise of this Warrant shall be increased
or decreased proportionately, so that after such adjustment, the aggregate
amount of the adjusted Purchase Price multiplied by the aggregate adjusted
amount of Warrant Shares shall equal the aggregate amount of the unadjusted
Purchase Price multiplied by the aggregate unadjusted amount of Warrant
Shares.

A-3 

          (c) Adjustments for Other Dividends and Distributions. In the event the Company at any time or from time to time
after the Original Issue Date shall make or issue, or fix a record date for the
determination of holders of Common Stock entitled to receive, a dividend or
other distribution payable in securities of the Company (other than shares of
Common Stock) or in cash or other property (other than regular cash dividends
paid out of earnings or earned surplus, determined in accordance with generally
accepted accounting principles), then and in each such event provision shall be
made so that the Registered Holder shall receive upon exercise hereof, in
addition to the number of shares of Common Stock issuable hereunder, the kind
and amount of securities of the Company, cash or other property which the
Registered Holder would have been entitled to receive had this Warrant been
exercised on the date of such event and had the Registered Holder thereafter,
during the period from the date of such event to and including the Exercise
Date, retained any such securities receivable during such period, giving
application to all adjustments called for during such period under this Section
2 with respect to the rights of the Registered Holder. 

          (d) Adjustment for Reorganization. If
there shall occur any reorganization, recapitalization, reclassification,
consolidation or merger involving the Company in which the Common Stock is
converted into or exchanged for securities, cash or other property
(collectively, a “Reorganization”), then, following such
Reorganization, the Registered Holder shall receive upon exercise hereof the
kind and amount of securities, cash or other property which the Registered
Holder would have been entitled to receive pursuant to such Reorganization if
such exercise had taken place immediately prior to such Reorganization.
Notwithstanding the foregoing sentence, if (x) there shall occur any
Reorganization in which the Common Stock is converted into or exchanged for
anything other than solely equity securities, and (y) the common stock of the
acquiring or surviving company is publicly traded, then, as part of such
Reorganization, (i) the Registered Holder shall have the right thereafter to
receive upon the exercise hereof such number of shares of common stock of the
acquiring or surviving company as is determined by multiplying (A) the number of
shares of Common Stock subject to this Warrant immediately prior to such
Reorganization by (B) a fraction, the numerator of which is the Fair Market
Value (as defined below) per share of Common Stock as of the effective date of
such Reorganization, and the denominator of which is the fair market value per
share of common stock of the acquiring or surviving company as of the effective
date of such transaction, as determined in good faith by the Board (using the
principles set forth in Sections 2(d)(i) and 2(d)(ii) to the extent applicable),
and (ii) the exercise price per share of common stock of the acquiring or
surviving company shall be the Purchase Price divided by the fraction referred
to in clause (B) above. In any such case, appropriate adjustment (as determined
in good faith by the Board) shall be made in the application of the provisions
set forth herein with respect to the rights and interests thereafter of the
Registered Holder, to the end that the provisions set forth in this Section 2
(including provisions with respect to changes in and other adjustments of the
Purchase Price) shall thereafter be applicable, as nearly as reasonably may be,
in relation to any securities, cash or other property thereafter deliverable
upon the exercise of this Warrant.

A-4 

          The Fair Market Value per share of Common Stock shall be
determined as follows: 

               (1) If the Common Stock is listed on a national securities
exchange, the Nasdaq Capital Market, Nasdaq Global Market, the NYSE Amex LLC or
another nationally recognized trading system, including the OTC Bulletin Board,
the Fair Market Value per share of Common Stock shall be deemed to be the
average of the high and low reported sale prices per share of Common Stock
thereon on the trading day immediately preceding the date thereof
(provided
that if no such price is reported on such day, the Fair Market Value per share
of Common Stock shall be determined pursuant to clause (2) below). 

               (2) If the Common Stock is not listed on a national securities
exchange, the Nasdaq Capital Market, the Nasdaq Global Market, the NYSE Amex LLC
or another nationally recognized trading system, including the OTC Bulletin
Board, the Fair Market Value per share of Common Stock shall be deemed to be the
amount most recently determined in good faith by the Board of Directors of the
Company (the “Board”) to represent the fair market value per share of the Common
Stock (including without limitation a determination for purposes of granting
Common Stock options or issuing Common Stock under any plan, agreement or
arrangement with employees of the Company); and, upon request of the Registered
Holder, the Board (or a representative thereof) shall, as promptly as reasonably
practicable but in any event not later than ten (10) days after such request,
notify the Registered Holder of the Fair Market Value per share of Common Stock
and furnish the Registered Holder with reasonable documentation of the Board’s
determination of such Fair Market Value. Notwithstanding the foregoing, if the
Board has not made such a determination within the three-month period prior to
the date thereof, then the Board shall make, and shall provide or cause to be
provided to the Registered Holder notice of, a determination of the Fair Market
Value per share of the Common Stock within fifteen (15) days of a request by the
Registered Holder that it do so. 

          (e) Certificate as to Adjustments. Upon
the occurrence of each adjustment or readjustment of the Purchase Price pursuant
to this Section 2, the Company at its expense shall, as promptly as reasonably
practicable but in any event not later than ten (10) days thereafter, compute
such adjustment or readjustment in accordance with the terms hereof and furnish
to the Registered Holder a certificate setting forth such adjustment or
readjustment (including the kind and amount of securities, cash or other
property for which this Warrant shall be exercisable and the Purchase Price) and
showing in detail the facts upon which such adjustment or readjustment is based.
The Company shall, as promptly as reasonably practicable after the written
request at any time of the Registered Holder (but in any event not later than
ten (10) days thereafter), furnish or cause to be furnished to the Registered
Holder a certificate setting forth (i) the Purchase Price then in effect and
(ii) the number of shares of Common Stock and the amount, if any, of other
securities, cash or property which then would be received upon the exercise of
this Warrant.

     3.
Fractional Shares. The Company shall not be required upon the exercise of this
Warrant to issue any fractional shares, but shall
pay the value thereof to the Registered Holder in cash on the basis of the Fair
Market Value per share of Common Stock, as determined pursuant to Section 2(d)
above. 

A-5 

     4.
Transfers, etc. 

          (a) Notwithstanding anything to the contrary contained herein, this Warrant
and the Warrant Shares shall not be sold or transferred unless either (i) they
first shall have been registered under the Securities Act of 1933, as amended
(the “Act”), or (ii) such sale or transfer shall be exempt from the registration
requirements of the Act and the Company shall have been furnished with an
opinion of legal counsel, reasonably satisfactory to the Company, to the effect
that such sale or transfer is exempt from the registration requirements of the
Act. Notwithstanding the foregoing, no registration or opinion of counsel shall
be required for (i) a transfer by a Registered Holder which is an entity to a
wholly owned subsidiary of such entity, a transfer by a Registered Holder which
is a partnership to a partner of such partnership or a retired partner of such
partnership or to the estate of any such partner or retired partner, or a
transfer by a Registered Holder which is a limited liability company to a member
of such limited liability company or a retired member or to the estate of any
such member or retired member, provided that the transferee in each
case agrees in writing to be subject to the terms of this Section 4, or (ii) a
transfer made in accordance with Rule 144 under the Act. 

          (b) Each certificate representing Warrant Shares shall bear a legend
substantially in the following form: 

“The securities represented hereby
have not been registered under the Securities Act of 1933, as amended, or any
state securities laws and neither the securities nor any interest therein may
not be offered, sold, transferred, pledged or otherwise disposed of except
pursuant to an effective registration under such act or an exemption from
registration, which, in the opinion of counsel reasonably satisfactory to
counsel for this corporation, is available.” 

     The
foregoing legend shall be removed from the certificates representing any Warrant
Shares, at the request of the holder thereof, at such time as they become
eligible for resale pursuant to Rule 144 under the Act or at such time as the
Warrant Shares are sold or transferred in accordance with the requirements of a
registration statement of the Company on Form S-3, or such other form as may
then be in effect. 

          (c) The Company will maintain a register containing the name and address of
the Registered Holder of this Warrant. The Registered Holder may change its
address as shown on the warrant register by written notice to the Company
requesting such change. 

          (d) Subject to the provisions of Section 4 hereof, this Warrant and all
rights hereunder are transferable, in whole or in part, upon surrender of this
Warrant with a properly executed assignment (in the form of Exhibit II hereto) at the
principal office of the Company (or, if another office or agency has been
designated by the Company for such purpose, then at such other office or
agency). 

     5. No
Impairment. The Company will not, by
amendment of its charter or through any reorganization, transfer of assets,
consolidation, merger, 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, but
will at all times in good faith assist in the carrying out of all such terms and
in the taking of all such action as may be necessary or appropriate in order to
protect the rights of the Registered Holder against impairment.

A-6 

     6.
Notices of Record Date, etc. In the event: 

          (a) the Company shall take a record of the holders of its Common Stock (or
other stock or securities at the time deliverable upon the exercise of this
Warrant) for the purpose of entitling or enabling them to receive any dividend
or other distribution, or to receive any right to subscribe for or purchase any
shares of stock of any class or any other securities, or to receive any other
right; or 

          (b) of any capital reorganization of the Company, any reclassification of the
Common Stock of the Company, any consolidation or merger of the Company with or
into another corporation, or any transfer of all or substantially all of the
assets of the Company; or 

          (c) of the voluntary or involuntary dissolution, liquidation or winding-up of
the Company, then, and in each such case, the Company will send or cause to be
sent to the Registered Holder a notice specifying, as the case may be, (i) the
record date for such dividend, distribution or right, and the amount and
character of such dividend, distribution or right, or (ii) the effective date on
which such reorganization, reclassification, consolidation, merger, transfer,
dissolution, liquidation or winding-up is to take place, and the time, if any is
to be fixed, as of which the holders of record of Common Stock (or such other
stock or securities at the time deliverable upon the exercise of this Warrant)
shall be entitled to exchange their shares of Common Stock (or such other stock
or securities) for securities or other property deliverable upon such
reorganization, reclassification, consolidation, merger, transfer, dissolution,
liquidation or winding-up. Such notice shall be sent at least ten (10) days
prior to the record date or effective date for the event specified in such
notice. 

     7. Reservation of Stock. The Company will at all
times reserve and keep available, solely for issuance and delivery upon the
exercise of this Warrant, such number of Warrant Shares and other securities,
cash and/or property, as from time to time shall be issuable upon the exercise
of this Warrant. 

     8.
Exchange or Replacement of
Warrants.

          (a) Upon the surrender by the Registered Holder, properly endorsed, to the
Company at the principal office of the Company, the Company will, subject to the
provisions of Section 4 hereof, issue and deliver to or upon the order of the
Registered Holder, at the Company’s expense, a new Warrant or Warrants of like
tenor, in the name of the Registered Holder or as the Registered Holder (upon
payment by the Registered Holder of any applicable transfer taxes) may direct,
calling in the aggregate on the face or faces thereof for the number of shares
of Common Stock (or other securities, cash and/or property) then issuable upon
exercise of this Warrant. 

          (b) Upon receipt 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) upon delivery of an indemnity agreement (with surety if
reasonably required) in an amount reasonably satisfactory to the Company, or (in
the case of mutilation) upon surrender and cancellation of this Warrant, the
Company will issue, in lieu thereof, a new Warrant of like
tenor. 

A-7 

     9.
Notices.
Any and all notices or other communications or deliveries hereunder (including, without limitation, any Exercise Notice) shall be
in writing and shall be deemed given and effective on the earliest of (i) the
date of transmission, if such notice or communication is delivered via facsimile
at the facsimile number specified in this Section prior to 5:30 p.m. (New York
City time) on a Trading Day, (ii) 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 5:30 p.m. (New York City time) on any Trading Day, (iii) the Trading
Day following the date of mailing, if sent by nationally recognized overnight
courier service with next day delivery specified, or (iv) upon actual receipt by
the party to whom such notice is required to be given. The addresses for such
communications shall be: (i) if to the Company, to Voxware, Inc., 300 American
Metro Blvd., Suite 155, Hamilton, New Jersey 08619, Facsimile: (609) 514-4301,
Attention: Chief Executive Officer, or such other address as the Company shall
so notify the Holder, or (ii) if to the Holder, to the address or facsimile
number last furnished to the Company in writing by the Registered Holder. All
notices and other communications from the Company to the Registered Holder in
connection herewith shall be mailed by certified or registered mail, postage
prepaid, or sent via a reputable nationwide overnight courier service
guaranteeing next business day delivery, to the address last furnished to the
Company in writing by the Registered Holder. 

     10. No
Rights as Stockholder. Until the exercise of
this Warrant, the Registered Holder shall not have or exercise any rights by
virtue hereof as a stockholder of the Company. Notwithstanding the foregoing, in
the event (i) the Company effects a split of the Common Stock by means of a
stock dividend and the Purchase Price of and the number of Warrant Shares are
adjusted as of the date of the distribution of the dividend (rather than as of
the record date for such dividend), and (ii) the Registered Holder exercises
this Warrant between the record date and the distribution date for such stock
dividend, the Registered Holder shall be entitled to receive, on the
distribution date, the stock dividend with respect to the shares of Common Stock
acquired upon such exercise, notwithstanding the fact that such shares were not
outstanding as of the close of business on the record date for such stock
dividend. 

     11. Amendment or Waiver. This Warrant may only be
modified or amended or the provisions hereof waived with the written consent of
the Company and the Registered Holder.

     12. Section Headings. The section headings in
this Warrant are for the convenience of the parties and in no way alter, modify,
amend, limit or restrict the contractual obligations of the parties. 

     13. Governing Law. This Warrant will be governed
by and construed in accordance with the internal laws of the State of New Jersey
(without reference to the conflicts of law provisions thereof). 

     14.
Facsimile Signatures. This Warrant may be executed by facsimile signature.

* * * * * * * 

A-8 

      
EXECUTED as of the Date of Issuance indicated above. 

	VOXWARE, INC.  
	  
	  
	By:  	 	 
		Name: Scott J. Yetter 	 
		Title: President and CFO  	 

[ Signature Page – Warrant – Voxware,
Inc. ] 

A-9 

EXHIBIT I 

PURCHASE FORM 

	     	To: Voxware Inc.  	Dated:  	                      
    

     The
undersigned, pursuant to the provisions set forth in the attached Warrant (No.
___), hereby purchases __________ shares of the Common Stock of Voxware, Inc.
covered by such Warrant. 

     The
undersigned herewith makes payment of $__________ in lawful money of the United
States representing the full purchase price for such shares at the price per
share provided for in such Warrant. 

	Signature:  	 	
		 	
	Address:  	 	
		 	
		 	

A-10 

EXHIBIT II 

ASSIGNMENT FORM 

     FOR VALUE
RECEIVED, ______________________________________ hereby sells, assigns and
transfers all of the rights of the undersigned under the attached Warrant (No.
____) with respect to the number of shares of Common Stock of Voxware, Inc.
covered thereby set forth below, unto: 

	Name of Assignee 	 	     	Address 	 	     	No. of Shares 	 

	     	Dated:  	 	          	Signature:  	 

A-11 

EXHIBIT B 

Voxware, Inc.
Confidential Purchaser Questionnaire 

Before any sale of Shares or
Warrants by Voxware, Inc. can be made to you, this Questionnaire must be
completed and returned to Voxware, Inc, Attn: William Levering, 300 American
Metro Blvd., Suite 155, Hamilton, New Jersey 08619. 

	1.  	IF YOU ARE AN
      INDIVIDUAL PLEASE FILL IN THE IDENTIFICATION QUESTIONS IN (A) IF YOU ARE
      AN ENTITY PLEASE FILL IN THE IDENTIFICATION QUESTIONS IN
  (B)

A. INDIVIDUAL IDENTIFICATION
QUESTIONS 

	Name  	 
	(Exact name as it should appear on stock
      certificate)  

	Residence
      Address  	 

	Home Telephone
      Number  	 

	Fax Number 
	 

	Date of Birth 
    	 

	Social Security
      Number  	 

B. IDENTIFICATION QUESTIONS FOR
ENTITIES 

	Name  	  
		(Exact name as it will
      appear on stock certificate)  

	Address of
      Principal  
	     Place of
      Business  	 

	State (or Country) of Formation  
	     or Incorporation  	 

	Contact
      Person  	 

	Telephone
      Number  	(     ) 

	Type of Entity  
	     (corporation,
      partnership,  
	     trust, etc.)  	 

	Was
      entity formed for the purpose of this investment?  
	Yes  	     	  	No  	     	 

2. DESCRIPTION OF INVESTOR

The following information is required to ascertain whether you would be deemed
an “accredited investor” as defined in Rule 501 of Regulation D under the
Securities Act. Please check whether you are any of the following: 

	c	 	
      a
      corporation or partnership with total assets in excess of $5,000,000, not
      organized for the purpose of this particular investment

	c	      	
      private business development company as defined in Section
      202(a)(22) of the Investment Advisers Act of 1940, a U.S. venture capital
      fund which invests primarily through private placements in non-publicly
      traded securities and makes available (either directly or through
      co-investors) to the portfolio companies significant guidance concerning
      management, operations or business
objectives

B-1 

	c		
      a Small Business Investment
      Company licensed by the U.S. Small Business Administration under Section 301(c) or (d) of the Small Business
      Investment Act of 1958 

	c	     	
      an investment company registered
      under the Investment Company Act of 1940 or a business development company
      as defined in Section 2(a)(48) of that Act 

	c		
      a trust not organized to make
      this particular investment, with total assets in excess of $5,000,000
      whose purchase is directed by a sophisticated person as described in Rule
      506(b)(2)(ii) of the Securities Act of 1933 and who completed item 4 below
      of this questionnaire 

	c		
      a bank as defined in Section
      3(a)(2) or a savings and loan association or other institution defined in
      Section 3(a)(5)(A) of the Securities Act of 1933 acting in either an
      individual or fiduciary capacity 

	c		
      an insurance company as defined
      in Section 2(13) of the Securities Act of 1933 

	c		
      an employee benefit plan within
      the meaning of Title I of the Employee Retirement Income Security Act of
      1974 (i) whose investment decision is made by a fiduciary which is either
      a bank, savings and loan association, insurance company, or registered
      investment advisor, or (ii) whose total assets exceed $5,000,000, or (iii) if
      a self-directed plan, whose investment decisions are made solely by a
      person who is an accredited investor and who completed Part I of this
      questionnaire; 

	c	 	
      a charitable, religious,
      educational or other organization described in Section 501(c)(3) of the
      Internal Revenue Code, not formed for the purpose of this investment, with
      total assets in excess of $5,000,000 

	c		
      an entity not located in the U.S.
      none of whose equity owners are U.S. citizens or U.S. residents
    

	c		
      a broker or dealer registered
      under Section 15 of the Securities Exchange Act of 1934 

	c		
      a plan having assets exceeding
      $5,000,000 established and maintained by a government agency for its
      employees 

	c		
      an individual who had individual
      income from all sources during each of the last two years in excess of
      $200,000 or the joint income of you and your spouse (if married) from all
      sources during each of such years in excess of $300,000 and who reasonably
      excepts that either your own income from all sources during the current
      year will exceed $200,000 or the joint income of you and
      your spouse (if married) from all sources during the current year will
      exceed $300,000

	c		
      an individual whose net worth as
      of the date you purchase the securities offered, together with the net
      worth of your spouse, be in excess of $1,000,000 

	c		
      an entity in which all of the
      equity owners are accredited
investors

3. BUSINESS, INVESTMENT AND EDUCATIONAL EXPERIENCE 

	Occupation 
	 

	Number of
      Years  	 

	Present
      Employer  	 

	Position/Title  	 

	Educational
      Background  	 

B-2 

Frequency of prior investment (check one in each column): 

	 	Stocks & Bonds	Venture Capital Investments
	Frequently		
	Occasionally	 	 
	Never		 

4. SIGNATURE 

The above information is true and
correct. The undersigned recognizes that the Company and its counsel are relying
on the truth and accuracy of such information in reliance on the exemption
contained in Subsection 4(2) of the Securities Act of 1933, as amended, and
Regulation D promulgated thereunder. The undersigned agrees to notify the
Company promptly of any changes in the foregoing information which may occur
prior to the investment. 

Executed at ___________________,
on                             ,
2009 

	 
	(Signature) 

B-3

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