Document:

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                                                                    Exhibit 10.4

                               EXCHANGE AGREEMENT

     This EXCHANGE AGREEMENT ("Agreement") is entered into as of April 16, 2003,
by and among VOXWARE, INC., a Delaware corporation (the "Company"), with
principal executive office located at 168 Franklin Corner Road, Suite 3,
Lawrenceville, New Jersey 08543, and the parties set forth on the signature
pages hereto (collectively, the "Purchasers").

                                    RECITALS

     A. The Purchasers and the Company desire that the Purchasers (i) exchange
all outstanding 10% Convertible Debentures issued on October 2, 2002 (the
"Debentures") which are due on July 1, 2003, (ii) exchange all interests in the
capital stock of Voxware NV, a corporation organized under the laws of Belgium
("Voxware Europe"), including without limitation the Investor Stock (as defined
in the Creafund Shareholders Agreement noted below) and (iii) terminate all
Exchange Rights (the "Exchange Rights") set forth in Section 3 of that certain
Shareholders Agreement (the "Creafund Shareholders Agreement") dated as of
October 2, 2002, by and among the Company and the Purchasers, in each case held
by the Purchasers as of the Effective Time (as defined below) for shares of the
Company's Series D Convertible Preferred Stock, par value $0.001 per share (the
"Series D Stock"), the terms of which are set forth in the Amended and Restated
Certificate of Incorporation (the "Amended and Restated Certificate") in the
form attached hereto as Exhibit "A".

     B. Contemporaneously with the Effective Time (as defined below), the
Company will be consummating the transactions contemplated by that certain
Series D Convertible Preferred Stock Purchase Agreement dated as of April 16,
2003 (the "Series D Purchase Agreement") by and among the Company and the
Purchasers named therein in the form attached hereto as Exhibit "B", including
without limitation the transactions contemplated hereby, the issuance of shares
of Series D Stock, the issuance of warrants (the "Common Stock Warrants") to
purchase shares of the Company's common stock, par value $0.001 ("Common
Stock"), and the issuance of warrants to purchase shares of Series D Stock (the
"Series D Warrants" and collectively with the Common Stock Warrants, the "New
Warrants").

     C. As soon as practicable after the date hereof, the Company will be filing
a Proxy Statement (the "Proxy Statement") with the Securities and Exchange
Commission (the "SEC") seeking approval from the Company's stockholders of the
transactions contemplated by the Series D Purchase Agreement, including the
issuance of shares of Series D Stock.

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     NOW, THEREFORE, in consideration of their respective promises contained
herein and other good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, the Company and the Purchasers hereby agree as
follows:

                                    ARTICLE I
                       EXCHANGE AND ISSUANCE OF SECURITIES

     1.1 Exchange of Debentures. At the Effective Time without the requirement
of any further action by any party, all Debentures held by each of the
Purchasers shall be deemed cancelled in exchange for an aggregate of 20,000,000
shares of Series D Stock which shall be issued to the Purchasers as set forth on
Schedule 1 hereto. At the Effective Time, the Purchasers shall surrender all
Debentures to the Company and the Company shall (i) issue to the Purchasers as
set forth on Schedule 1 hereto, as of the date on which the Effective Time
occurs, certificates for an aggregate of 20,000,000 shares of Series D Stock and
(ii) pay to the Purchasers cash for accrued and unpaid interest on the
Debentures at the rate of 10% per annum for the period from the date of receipt
of the proceeds under the Debentures ((euro)140.699,32 on July 2, 2002 and
(euro)160,000 on October 9, 2002) through the Effective Date.

     1.2 Exchange of Investor Stock and Termination of Exchange Rights. At the
Effective Time, (i) all interests in the capital stock of Voxware Europe,
including without limitation the Investor Stock, shall be exchanged and (ii) all
Exchange Rights shall be terminated for an aggregate of 30,000,000 shares of
Series D Stock, which shares shall be issued to the Purchasers at the Effective
Time.

          (a) In the event the Net Sales (as defined in the Creafund
Shareholders Agreement) of Voxware Europe for the year ended December 31, 2003
are at least (euro)3,000,000, the Company shall issue to the Purchasers
2,500,000 additional shares of Series D Stock.

          (b) In the event the Net Sales of Voxware Europe for the year ended
December 31, 2003 are more than (euro)3,000,000 but do not exceed
(euro)4,000,000, the number of additional shares of Series D Stock to be issued
to the Purchasers pursuant to this subsection (b) (in addition to the shares of
Series D Stock to be issued pursuant to subsection (a) above) shall be
calculated as follows:

     N = 7,500,000 x A minus(euro)3,000,000
                     ----------------------
                        (euro)1,000,000

where N equals the number of additional shares of Series D Stock to be issued to
the Purchasers and A equals the actual Net Sales of Voxware Europe for the year
ended December 31, 2003.

          (c) In the event the Net Sales of Voxware Europe for the year ended
December 31, 2003 are more than (euro)4,000,000, the number of additional shares
of Series D Stock to be issued to the Purchasers pursuant to this subsection (c)
(in addition to the

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shares of Series D Stock to be issued pursuant to subsections (a) and (b) above)
shall be calculated as follows:

     N = 5,000,000 x A minus(euro)4,000,000
                     ----------------------
                          (euro)500,000

where N equals the number of additional shares of Series D Stock to be issued to
the Purchasers and A equals the actual Net Sales of Voxware Europe for the year
ended December 31, 2003; provided, however, that above quotient may not exceed
one (1).

          (d) Any shares of Series D Stock to be issued to the Purchasers
pursuant to this Section 1.2 shall be allocated among the Purchasers in
accordance with Schedule 2 hereto, taking into consideration the exercise of the
call option as set forth in Section 4.11 hereof. Any additional shares of Series
D Stock to be issued to the Purchasers pursuant to subsections (a), (b) or (c)
above shall be issued on or before March 31, 2004.

     1.3 Effective Time. The "Effective Time" of the Exchange shall be the time
at which the transactions contemplated by the Series D Purchase Agreement are
consummated, including without limitation, the execution of the Investor Rights
Agreement (the "Investor Rights Agreement") by the Company and the Investors
named therein (including the Purchasers) in the form attached hereto as Exhibit
"C" and the execution of the Stockholders Agreement (the "Stockholders
Agreement") by the Company and the Holders and Investors named therein
(including the Purchasers) in the form attached hereto as Exhibit "D".

                                   ARTICLE II
                   PURCHASERS' REPRESENTATIONS AND WARRANTIES

     Each of the Purchasers represents and warrants to the Company as follows:

     2.1 Purchase for Own Account. Such Purchaser is acquiring the shares of
Series D Stock and the shares of Common Stock issued upon conversion of or as
dividends upon the Series D Stock (the "Conversion Shares" and collectively with
the Series D Stock, the "Securities") for its own account and not with a view
toward, or in connection with, the public distribution thereof, and will not
resell the Securities except pursuant to sales that are exempt from the
registration requirements of the Securities Act of 1933, as amended (the
"Securities Act"), and/or sales that are registered under the Securities Act.
Such Purchaser further represents that it does not have any contract,
undertaking, agreement or arrangement with any person to sell, transfer or grant
participation to any third party with respect to any of the Securities, except
for a call option granted to Avvision BVBA by Creafund NV with respect to
certain Investor Stock held by Creafund NV, which call option has been
irrevocably exercised, effective and contingent upon the Effective Time. Such
Purchaser understands that it must bear the economic risk of this investment
indefinitely, unless any disposition of the Securities is registered pursuant to
the Securities Act and any applicable state securities laws or an

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exemption from such registration is available, and that the Company has no
present intention of disposing of any such Securities other than as contemplated
by the Investor Rights Agreement.

     2.2 Transfer or Resale. Such Purchaser understands that (i) except as
provided in the Investor Rights Agreement, the Securities have not been and are
not being registered under the Securities Act or any state securities laws, and
may not be transferred unless subsequently registered thereunder or an exemption
from such registration is available; (ii) any sale of such Securities made in
reliance on Rule 144 under the Securities Act (or a successor rule) ("Rule 144")
may be made only in accordance with the terms of said Rule and further, if said
Rule is not applicable, any resale of such Securities without registration under
the Securities Act may require compliance with some other exemption under the
Securities Act or the rules and regulations of the SEC thereunder; and (iii)
neither the Company nor any other person is under any obligation to register
such Securities under the Securities Act or any state securities laws or to
comply with the terms and conditions of any exemption thereunder (in each case,
other than pursuant to the Investor Rights Agreement).

     2.3 Legends. Such Purchaser further represents that it understands and
agrees that, until registered under the Securities Act, or transferred pursuant
to the provisions of Rule 144 as promulgated by the Commission, all certificates
evidencing any of the Series D Stock or Conversion Shares shall bear a legend,
prominently stamped or printed thereon, reading substantially as follows:

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

     2.4 Authorization; Enforcement. This Agreement has been duly and validly
authorized, executed and delivered on behalf of such Purchaser and constitutes a
valid and binding agreement of such Purchaser enforceable against such Purchaser
in accordance with its terms, except as enforcement thereof may be limited by
(i) laws of general application relating to bankruptcy, insolvency moratorium,
reorganization or other similar laws, both state and federal, affecting the
enforcement of creditors' rights in general, and (ii) rules of law governing
specific performance, injunctive relief and other equitable remedies.

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     2.5 Ownership of Debentures. On the date of this Agreement, such Purchaser
owns such Debentures as set forth Schedule 1 hereto, free and clear of all
claims, rights, liens, security interests and encumbrances.

                                   ARTICLE III
                  REPRESENTATIONS AND WARRANTIES OF THE COMPANY

     The Company represents and warrants to each of the Purchasers that:

     3.1 Organization and Qualification. The Company and each of its
subsidiaries is a corporation duly organized, validity existing and in good
standing under the laws of the jurisdiction in which it is incorporated, and has
the requisite corporate power and authority to own its properties and to carry
on its business as now being conducted. The Company and each of its subsidiaries
is duly qualified as a foreign corporation to do business and is in good
standing in every jurisdiction where the failure to so qualify would have a
Material Adverse Effect.

     For the purpose of this agreement "Material Adverse Effect" means any
material adverse effect on (a) the business, operations, properties, financial
condition or operating results of the Company and its subsidiaries, taken as a
whole on a consolidated basis or (b) the ability of the Company to perform its
obligations under this Agreement, and the Investor Rights Agreement
(collectively, the "Investment Agreements").

     3.2 Authorization; Enforcement. (a) The Company has the requisite corporate
power and authority to (i) enter into, and perform its obligations under the
Investment Agreements, (ii) issue and perform its obligations with respect to
the Series D Stock in accordance with the terms hereof and thereof, and (iii)
issue the Conversion Shares in accordance with the terms and conditions of the
Series D Stock; (b) the execution, delivery and performance of this Agreement
and the consummation by the Company of the transactions contemplated hereby
(including without limitation the issuance of the Series D Stock, the
reservation for issuance and issuance of the number of the Conversion Shares
initially issuable pursuant to the conversion of the Series D Stock) have been
duly authorized by all necessary corporate action and no further consent or
authorization of the Company, its Board of Directors or stockholders or any
other person, body or agency is required with respect to any of the transactions
contemplated hereby or thereby (other than actions of (i) the SEC and the
Company's Board of Directors in connection with the registration of the
Conversion Shares in accordance with the Investor Rights Agreement and (ii) the
SEC and the Company's stockholders in connection with the Proxy Statement and
the approval of the matters set forth therein); (c) this Agreement has been duly
executed and delivered by the Company; and (d) this Agreement constitutes a
legal, valid and binding obligation of the Company enforceable against the
Company in accordance with its terms, except as enforcement thereof may be
limited by (i) laws of general application relating to bankruptcy, insolvency
moratorium, reorganization or other similar laws, both state and federal,
affecting the enforcement of

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creditors, rights in general, and (ii) rules of law governing specific
performance, injunctive relief and other equitable remedies.

     3.3 Issuance of Shares, etc. The Series D Stock and the Conversion Shares
have been duly authorized and when issued and delivered in accordance with the
terms hereof (and, as to the Conversion Shares, in accordance with the terms of
the Series D Stock) will be validly issued, fully paid and non-assessable, free
from all taxes, liens, claims and encumbrances and are not and will not be
subject to preemptive rights or other similar rights and will not trigger any
anti-dilution or similar provisions in any securities of the Company or any
other agreements to which the Company is party which rights or provisions have
not been waived.

     3.4 No Conflicts. The execution, delivery and performance of each of this
Agreement by the Company and the consummation by the Company of the transactions
contemplated hereby (including the issuance of the Series D Stock and the
reservation for issuance of the Conversion Shares) do not and will not (a)
result in a violation of the Amended and Restated Certificate or By-laws of the
Company or any of its subsidiaries, (b) conflict with, or constitute a default
(or an event which with notice or lapse of time or both would become a default)
under, or give to others any rights of termination, amendment, acceleration or
cancellation of, any agreement, indenture or instrument to which the Company or
any of its subsidiaries is a party (except for such conflicts, defaults,
terminations, amendments, accelerations, and cancellations as would not,
individually or in the aggregate, have a Material Adverse Effect), or (c)
assuming the accuracy of the Purchaser's representations and warranties set
forth in Article II hereof, result in a violation of any law, rule, regulation,
order, judgment or decree (including, without limitation, U.S. federal and state
securities laws and regulations) applicable to the Company or any of its
subsidiaries, or by which any property or asset of the Company or any of its
subsidiaries, is bound or affected. The Company is not required to obtain any
consent, authorization or order of, or make any filing or registration with, any
court or governmental agency or any regulatory or self-regulatory agency or
entity or authority in order for it to execute, deliver or perform any of its
obligations under this Agreement or to perform its obligations in accordance
with the terms hereof.

     3.5 Acknowledgment Regarding Purchasers' Acquisition of the Securities. The
Company acknowledges and agrees that each Purchaser is acting independently and
is not acting as a financial advisor or fiduciary of the Company (or in any
similar capacity) with respect to this Agreement or the transactions
contemplated hereby, that this Agreement and the transactions contemplated
hereby, and the relationship between each Purchaser and the Company is
"arms-length", and that any statement made by any Purchaser, or any of its
representatives or agents, in connection with this Agreement or the transactions
contemplated hereby, other than the representations and warranties of the
Purchasers contained herein, is not advice or a recommendation, is merely
incidental to such Purchaser's acquisition of the Securities and has not been
relied upon in any way by the Company, its officers, directors or other
representatives. The Company further represents to the Purchasers that the
Company's decision to enter into this Agreement and

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the transactions contemplated hereby has been based solely on an independent
evaluation by the Company and its representatives.

     3.6 No Brokers. Except as set forth in the Series D Purchase Agreement, the
Company has taken no action that would give rise to any claim by any person for
brokerage commissions, finder's fees or similar payments by any of the
Purchasers relating to this Agreement or the transactions contemplated hereby.

                                   ARTICLE IV
                        AGREEMENTS, WAIVERS AND CONSENTS

     4.1 Qualifying Fundraising. Each of the Purchasers hereby agrees that the
issuance of the shares of Series D Stock and the New Warrants at the Effective
Time constitutes a Qualified Fundraising under each of the Debentures and the
Creafund Shareholders Agreement. Each of the Purchasers hereby permanently and
irrevocably waives its right to have any of the Debentures redeemed on or before
the Effective Time. Each of the Purchasers agrees that it will not convert any
of the Debentures, pursuant to Section 4 thereof, on or before the Effective
Time. Each of the Purchasers agrees that it will not exchange any of the
Investor Stock pursuant to Section 3 of the Creafund Shareholders Agreement, on
or before the Effective Time. Each of the Purchasers hereby waives any default
that currently exists under the Debentures through the Effective Time.

     4.2 Waiver of Rights to Additional Shares. To the extent such rights exist,
each of the Purchasers hereby permanently and irrevocably waives any right of
first refusal or pre-emptive right it may have with respect to the issuance of
the Series D Stock and the New Warrants contemplated by the Series D Purchase
Agreement and this Agreement.

     4.3 Termination of Security Agreement; Grant of Power of Attorney. Each of
the Purchasers agrees that, at the Effective Time, the Security Agreement dated
as of October 2, 2002 by and among the Company and the Purchasers shall be
terminated and have no further force or effect. Each of the Purchasers
authorizes the Company to file, at the Effective Time, one or more termination
statements pursuant to the Uniform Commercial Code, terminating the security
interest granted to the Purchasers, without the signature of any of the
Purchasers. In furtherance of the foregoing, each of the Purchasers hereby
irrevocably constitutes and appoints the Company and any officer thereof, with
full power of substitution, as its true and lawful attorneys-in-fact, with full
irrevocable power and authority in the place and stead of such Purchaser or in
the Purchaser's own name, to take any and all appropriate action and to execute
any and all documents and instruments that may be necessary or desirable to
accomplish the termination of the Security Agreement and the termination of
security interest granted to the Purchasers.

     4.4 Termination of Rights under Debentures. Each of the Purchasers agrees
that, as of the Effective Time, it shall have no further rights under the
Debentures, except as set forth in Section 1.1 above.

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     4.5. Amendment of Creafund Shareholders Agreement. Each of the Purchasers
agrees that, effective on the date hereof (except for clause e. below which
shall be effective at the Effective Time), the Creafund Shareholders Agreement
shall be amended as follows:

          a.   Section 2 is hereby amended to provide that Voxware, Inc. shall
               have no obligation to subscribe for additional capital stock of
               Voxware Europe, except for the obligation of Voxware, Inc. to
               purchase additional common shares of Voxware Europe in order to
               reinstall the minimum required capital of Voxware Europe
               of(euro)364,245 as of the fiscal year end date of June 30, 2003
               according to Articles 633 and 634 of the Corporation Law of
               Belgium. Such amounts will be paid by Voxware, Inc. by a
               reduction of the inter-company loan account currently owed by
               Voxware Europe to Voxware, Inc. As of March 31, 2003, the
               intercompany account balance was(euro)723,492.

          b.   Section 2A is hereby amended to provide that the license granted
               therein shall be royalty free at all times.

          c.   Section 3 is hereby amended to provide that none of the
               Purchasers shall have any right to exchange Investor Stock,
               except as set forth in Section 1.2 above.

          d.   Section 5 is hereby amended to the extent set forth in the last
               paragraph of this Section 4.5.

          e.   Section 6 is amended to provide that all three (3) members of the
               Voxware Europe Board of Directors shall be designated by Voxware,
               Inc.

          f.   Section 6.4 is added to the Creafund Shareholders Agreement to
               provide in its entirety as follows:

               6.4 Each of the Investors and Voxware Europe agree that, through
          the Effective Time, none of them shall take any action materially
          adverse to (i) the interests of Voxware, Inc. or (ii) the business of
          Voxware Europe.

     Each of the Purchasers agrees that, upon the issuance of the shares as set
forth in Section 1.2 above in connection with the Net Sales of Voxware Europe
for the year ended December 31, 2003, if any, the Creafund Shareholders
Agreement shall be terminated and have no further force or effect.

     4.6 Consent to Other Agreements. By execution of this Agreement, each of
the Purchasers hereby agrees to the terms of each of the Investor Rights
Agreement and

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the Stockholders Agreement and agrees to execute such agreements in connection
with the consummation of the transactions contemplated by the Series D Purchase
Agreement.

     4.7 Voting Agreement. Each of the Purchasers agrees to vote any shares of
Common Stock beneficially held by such Purchaser on the record date set forth in
the Proxy Statement in favor of the proposals recommended by the Board of
Directors of the Company.

     4.8 Board Observer Rights. So long as the Purchasers hold at least 40% of
the shares of Series D Stock acquired by the Purchasers pursuant to the exchange
of the Debenture pursuant to Section 1.1 above and the conversion of the
Exchange Rights pursuant to Section 1.2 above, Creafund NV shall be entitled to
send one representative to attend and participate (including by means of
telephonic conference call), in a nonvoting observer capacity, all meetings of
the Board of Directors of the Company and, in this respect, the Company shall
provide such representative copies of all notices, minutes, consents and other
materials that the Company provides to its Board of Directors.

     4.9 Report on Form 8-K. The Company agrees to file a Current Report on Form
8-K disclosing this Agreement and the transactions contemplated hereby with the
SEC within two (2) business days following the date hereof. Such Form 8-K shall
contain this Agreement as an Exhibit.

     4.10 Restrictions on Transfers. During the period from the date hereof
through the Effective Date, none of the Purchasers shall sell, transfer, or
grant any interest in, any of the Debentures. During the period from the date
hereof through the Effective Time, none of the Purchasers shall sell, transfer,
or grant any interest in, any of the shares of Investor Stock or any of the
Exchange Rights, except for a call option granted to Avvision BVBA by Creafund
NV with respect to certain Investor Stock held by Creafund NV, which call option
has been irrevocably exercised, effective and contingent upon the Effective
Time.

     4.11 Exercise of Call Option. Conditional upon the capital increase
provided for in Section 4.5.a., Avvision BVBA hereby irrevocably exercises,
effective and contingent upon the Effective Time, that certain "call option"
with respect to 301 of the shares of Investor Stock of Voxware Europe currently
held by Creafund NV.

                                    ARTICLE V
                                  MISCELLANEOUS

     5.1 Governing Law; Jurisdiction. This Agreement shall be construed and
enforced in accordance with and governed by the laws of the General Corporation
Law of the State of Delaware as to matters within the scope thereof, and as to
all other matters shall be construed and enforced in accordance with and
governed by the internal laws of the State of New Jersey, without regard to its
principles of conflicts of laws. The parties hereto irrevocably consent to the
jurisdiction of the United States federal courts located in

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the State of Delaware and the state courts in the State of Delaware in any suit
or proceeding based on or arising under this Agreement or the transactions
contemplated hereby and irrevocably agree that all claims in respect of such
suit or proceeding may be determined in such courts. The Company irrevocably
waives the defense of an inconvenient forum to the maintenance of such suit or
proceeding. The Company further agrees that service of process upon the Company
mailed by the first class mail shall be deemed in every respect effective
service of process upon the Company in any suit or proceeding arising hereunder.
Nothing herein shall affect any Purchaser's right to serve process in any other
manner permitted by law. The parties hereto agree that a final non-appealable
judgment in any such suit or proceeding shall be conclusive and may be enforced
in other jurisdictions by suit on such judgment or in any other lawful manner.

     5.2 Counterparts. This Agreement may be executed in two or more
counterparts, including, without limitation, by facsimile transmission, all of
which counterparts shall be considered one and the same agreement and shall
become effective when counterparts have been signed by each party and delivered
to the other party. In the event any signature page is delivered by facsimile
transmission, the party using such means of delivery shall cause additional
original executed signature pages to be promptly delivered to the other parties.

     5.3 Headings. The headings of this Agreement are for convenience of
reference and shall not form part of, or affect the interpretation of, this
Agreement.

     5.4 Severability. If any provision of this Agreement shall be invalid or
unenforceable in any jurisdiction, such invalidity or unenforceability shall not
affect the validity or enforceability of the remainder of this Agreement or the
validity or enforceability of this Agreement in any other jurisdiction.

     5.5 Scope of Agreement; Amendments. This Agreement and the documents and
instruments referenced herein contain the entire understanding of the parties
with respect to the matters covered herein and therein. No provision of this
Agreement may be waived other than by an instrument in writing signed by the
party to be charged with enforcement and no provision of this Agreement may be
amended other than by an instrument in writing signed by the Company and the
Purchasers.

     5.6 Notice. Any notice herein required or permitted to be given under the
terms of this Agreement shall be in writing and may be personally served or
delivered by courier or by facsimile-machine confirmed telecopy, and shall be
deemed delivered at the time and date of receipt (which shall include telephone
line facsimile transmission). The addresses for such communications shall be:

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                  If to the Company:

                  VOXWARE, INC.
                  Lawrenceville Office Park
                  P.O. Box 5363
                  Princeton, New Jersey 08543
                  or
                  168 Franklin Corner Road
                  Suite 3
                  Lawrenceville, NJ 08648
                  Attn:  Nicholas Narlis
                  Telephone No.: (609) 514-4100
                  Facsimile No.: (609) 514-4101

                  with copies to:

                  Hale and Dorr LLP
                  650 College Road East
                  Princeton, NJ 08540
                  Attn:  William J. Thomas
                  Telephone No.: (609) 750-7600
                  Facsimile No.: (609) 750-7700

                  If to the Purchasers:

                  To the address set forth on Schedule 1 hereto

     Each party shall provide notice to the other party of any change in
address.

     5.7 Successors and Assigns. This Agreement shall be binding upon and inure
to the benefit of the parties and their successors and assigns. The Company
shall not assign this Agreement or any rights or obligations hereunder without
the prior written consent of the Purchasers.

     5.8 Third Party Beneficiaries. This Agreement is intended for the benefit
of the parties hereto and their respective permitted successors and assigns and
is not for the benefit of, nor may any provision hereof be enforced by, any
other person.

     5.9 Survival. The representations and warranties, covenants and agreements
in this Agreement shall survive the execution and delivery of this Agreement and
the Securities, notwithstanding any due diligence investigation conducted by or
on behalf of the Purchasers.

     5.10 Public Filings; Publicity. On the same day as the Company files the
Form 8-K required pursuant to Section 4.9, the Company shall issue a press
release with respect to the transactions contemplated hereby. The Company and
the Purchasers shall have the

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right to review reasonably in advance of the issuance any press releases
(including the foregoing press release), SEC or other filings, or any other
public statements, with respect to the transactions contemplated hereby and all
reasonable comments by the Purchasers with respect thereto shall be implemented;
provided, however, that the Company shall be entitled, without the prior
approval of the Purchasers, to make any press release or SEC, Nasdaq, NASD or
exchange filings with respect to such transactions as is required by applicable
law and regulations (although the Purchasers shall (to the extent time permits)
be consulted by the Company in connection with any such press release prior to
its release and shall be provided with a copy thereof).

     5.11 Further Assurances. Each party shall do and perform, or cause to be
done and performed, all such further acts and things, and shall execute and
deliver all such other agreements, certificates, instruments and documents, as
the other party may reasonably request in order to carry out the intent and
accomplish the purposes of this Agreement and the consummation of the
transactions contemplated hereby.

     5.12 Remedies, Characterizations, Other Obligations, Breaches and
Injunctive Relief. The remedies provided in this Agreement shall be cumulative
and in addition to all other remedies available under this Agreement, at law or
in equity (including a decree of specific performance and/or other injunctive
relief), no remedy contained herein shall be deemed a waiver of compliance with
the provisions giving rise to such remedy and nothing herein shall limit a
Purchaser's right to actual damages for any failure by the Company to comply
with the terms of this Agreement. Amounts set forth or provided for herein with
respect to payments and the like (and the computation thereof) shall be the
amounts to be received by the Purchasers and shall not, except as expressly
provided herein, be subject to any other obligation of the Company (or the
performance thereof).

     5.13 Failure or Indulgence Not Waiver. No failure or delay on the part of a
Purchaser in the exercise of any power, right or privilege hereunder shall
operate as a waiver thereof, nor shall any single or partial exercise of any
such power, right or privilege preclude other or further exercise thereof or of
any other right, power or privilege.

     5.14 Termination. In the event that the Effective Time shall not have
occurred on or before June 30, 2003, unless the parties agree otherwise, this
Agreement shall terminate at the close of business on such date and all of the
agreements of the parties contained herein shall be null and void, except for
this Section 5.14. In the event of the termination of this Agreement, each of
the Debentures, the Creafund Shareholders Agreement and the Security Agreement
shall remain in full force and effect. Notwithstanding any termination of this
Agreement, any party not in breach of this Agreement shall preserve all rights
and remedies it may have against the other party hereto for a breach of this
Agreement prior to or relating to the termination.

     5.15 Joint Participation in Drafting. Each party to this Agreement has
participated in the drafting of this Agreement. As such, the language used
herein and therein shall be deemed to be the language chosen by the parties
hereto to express their

                                       12

<PAGE>

mutual intent and no rule of strict construction shall be applied against any
party to this Agreement.

                     [REMAINDER OF PAGE INTENTIONALLY BLANK]

                                       13

<PAGE>

     IN WITNESS WHEREOF, the undersigned Purchaser and the Company have caused
this Agreement to be duly executed as of the date first above written.

     COMPANY:

     VOXWARE, INC.

     By: /s/ Bathsheba J. Malsheen
         -------------------------------------
         Bathsheba J. Malsheen
         President and Chief Executive Officer

     PURCHASERS:

     Creafund NV

     By: /s/ Dirk Haernick
         -------------------------------------
         Name:  Dirk Haernick
         Title: Managing Director

     Avvision BVBA

     By: /s/ Pascal Persyn
         -------------------------------------
         Name:  Pascal Persyn
         Title: Managing Director

     /s/ Dominic Vlieghe, attorney-in-fact
     -----------------------------------------
     Eurl Val D'Ausa

     /s/ Wim Deneweth
     -----------------------------------------
     Wim Deneweth

     BVBA Com/2/Wizards

     By: /s/ Jon Vermeesch
         -------------------------------------
         Name:  Jon Vermeesch
         Title: President

<PAGE>

                                   SCHEDULE 1

-------------------------------------------------------------
                                                  Number of
                                                  Shares of
Name and Address of             Amount of      Series D Stock
     Purchasers              Debentures Held   to be Received
-------------------------------------------------------------
       Creafund, NV
Guldensporenpark 21 blok C
      9820 Merelbeke
         Belgium               $213,855.93       14,679,070
-------------------------------------------------------------
      Avvision BVBA
   Guido Gezellelaan87,
       8210 Loppem
         Belgium               $ 38,759.69        2,660,465
-------------------------------------------------------------
     BVBA Com2Wizards
  Hoeve Ter Bekelaan 25,
       2550 Kontich
         Belgium               $  7,267.44          498,837
-------------------------------------------------------------
      Deneweth, Wim
       Walstraat 45
      8020 Oostkamp
         Belgium               $  4,844.96          332,558
-------------------------------------------------------------
     Eurl Val D'Auso
 4 Allees des Jonquilles,
    59117 Wervicq Sud
          France               $ 26,647.29        1,829,070
-------------------------------------------------------------

<PAGE>

                                   SCHEDULE 2

Name and Address of Purchaser: Creafund NV, Guldensporenpark 21/C, 9820
Merelbeke, Belgium

Amount of Investor Stock held at the Effective Time : 365

Number of Shares of Series D Stock to be received :
     .    At the Effective Time : 16,418,912 shares;
     .    If Net Sales = 3,000,000 (euro) : 895,272 additional shares;
     .    If 3,000,000(euro)< Net Sales <= 4,000,000: max. 2,685,816 additional
          shares according to formula as set forth in Section 1.2.(b); and
     .    If Net Sales > 4,000,000 : max. 3,986,486 additional shares according
          to formula as set forth in Section 1.2.(c).

Name and Address of Purchaser: Avvision BVBA, Guido Gezellelaan 87, 8210 Loppem,
Belgium

Amount of Investor Stock held at the Effective Time : 301

Number of Shares of Series D Stock to be received :
     .    At the Effective Time : 13,581,088 shares;
     .    If Net Sales = 3,000,000 (euro) : 1,604,728 additional shares;
     .    If 3,000,000(euro)< Net Sales <= 4,000,000: max. 4,814,184 additional
          shares according to formula as set forth in Section 1.2.(b); and
     .    If Net Sales > 4,000,000 : max. 1,013,514 additional shares according
          to formula as set forth in Section 1.2.(c).<PAGE>

                                                                    Exhibit 10.5

                                                                  EXECUTION COPY

                     SETTLEMENT AGREEMENT AND MUTUAL RELEASE

     THIS SETTLEMENT AGREEMENT AND MUTUAL RELEASE (the "Settlement Agreement"),
is entered into this 16th day of April, 2003 by and between Voxware, Inc.
("Voxware"), a Delaware corporation having offices at 168 Franklin Corner Road,
Lawrenceville, New Jersey 08648, and Castle Creek Technology Partners, LLC
("Castle Creek"), having offices at 111 West Jackson Boulevard, Chicago,
Illinois 60604. Voxware and Castle Creek are referred to herein each,
individually, as a "Party" and collectively, as the "Parties".

                              W I T N E S S E T H:

     WHEREAS, on August 15, 2000, Voxware issued and sold to Castle Creek 4,000
shares of Series A Convertible Preferred Stock, par value $0.001 per share
("Series A Stock"); and

     WHEREAS, on August 29, 2001, Voxware issued to Castle Creek 3,365 shares of
Series B Convertible Preferred Stock, par value $0.001 per share ("Series B
Stock"), in exchange for all of the issued and outstanding Series A Stock held
by Castle Creek pursuant to the terms of an Exchange Agreement dated as of
August 29, 2001 between Voxware and Castle Creek (the "Exchange Agreement"); and

     WHEREAS, the Company was required to redeem the Series B Stock on February
10, 2003 for an amount equal to $1,000 per share plus any accrued and unpaid
dividends; and

     WHEREAS, Voxware believes that, as a result of its current financial
condition, funds are not legally available for the redemption of the Series B
Stock; and

     WHEREAS, on February 13, 2003, Castle Creek filed a civil action against
Voxware in the United States District Court for the District of Delaware, Civil
Action No. 03-196 (the "Litigation") with respect to Voxware's failure to redeem
the Series B Stock; and

<PAGE>

     WHEREAS, the Parties agree that they are entering into this Settlement
Agreement solely for the purposes of settling all disagreements between them and
to avoid further costs and liabilities with respect to these disagreements. This
Settlement Agreement is the product of informed negotiations and compromises of
previously stated legal positions.

     NOW, THEREFORE, in consideration of the premises and the mutual covenants
set forth herein, and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the Parties do stipulate and agree
as follows:

     1.   Settlement of the Litigation: In full and final settlement of the
Litigation, the following transactions will have occurred for the benefit of
Castle Creek:

          a.   Voxware shall have consummated a financing (the "Financing")
through the sale of its Series D Convertible Preferred Stock, par value $0.001
per share ("Series D Stock") substantially on the terms set forth in the Series
D Convertible Preferred Stock Purchase Agreement dated as of April 16, 2003 (the
"Series D Purchase Agreement") between Voxware and the Purchaser listed therein,
which agreement is attached hereto as Exhibit A; and

          b.   Castle Creek and Voxware shall have amended the Exchange
Agreement to limit conversions of Series B Stock so that the aggregate number of
shares of Common Stock, par value $0.001 per share ("Common Stock"), issued upon
such conversions does not exceed an aggregate of 17,250,000, which conversions
shall be subject in all events to the rights, preferences, privileges and other
terms of the Series B Stock as stated in Voxware's Amended and Restated
Certificate of Incorporation, the form of which is attached hereto as Exhibit B
(the "Amended and Restated Charter").

          c.   Castle Creek shall have received the payments contemplated by
Section 1.1 of the Exchange Agreement dated as of April 16, 2003 between Castle
Creek and Voxware.

                                       2

<PAGE>

     Voxware and Castle Creek acknowledge that the terms of settlement described
in paragraphs 1(a), 1(b) and 1(c) above are conditions precedent to the
effectiveness of the other provisions of this Settlement Agreement, except as
specifically otherwise provided for herein.

     2.   Stipulated Judgment: Upon execution of this agreement, Voxware shall
execute and deliver to Castle Creek the Stipulated Judgment in the litigation
attached hereto as Exhibit C, which Stipulated Judgment shall be held in escrow
by Castle Creek's counsel in accordance with the terms of this Settlement
Agreement. Notwithstanding anything herein to the contrary, in no event shall
Castle Creek file the Stipulated Judgment, except upon the occurrence of an
Event of Default (as defined in Section 4 below).

     3.   Closing: The "Closing" of this Settlement Agreement shall be deemed to
have occurred when the complete execution of this Settlement Agreement has
occurred and the conditions precedent to the settlement in paragraphs 1(a), 1(b)
and 1(c) have been satisfied.

     4.   Termination of Settlement Agreement: Castle Creek may, in its sole
discretion, terminate this Settlement Agreement, including, inter alia, the
release provisions herein, upon the following events (collectively, the "Events
of Default):

          (a)  Closing does not occur on or before June 30, 2003;

          (b)  The Series D Purchase Agreement is terminated; or

          (c)  Voxware shall have committed any material breach or event of
default after the date of this Settlement Agreement and prior to the Closing,
under any agreement between Voxware and Castle Creek which breach or event of
default remains unremedied for three (3) business days after notice to Voxware
from Castle Creek.

     5.   Dismissal of the Litigation: Within five (5) business days of Closing,
Castle Creek shall cause to be filed the stipulation of voluntary dismissal with
prejudice attached hereto

                                       3

<PAGE>

as Exhibit D.

     6.   Stay Of Litigation: From the date of this Agreement until (a) Closing
or (b) termination of this Settlement Agreement, Castle Creek shall obtain,
subject to Court approval as may be necessary, a stay of all proceedings in the
Litigation, including, but not limited to, an extension of Voxware's answer
date.

     7.   Release by Voxware. Upon the date of Closing, Voxware, on its own
behalf and on behalf of all persons and entities acting through or under, in
control of it or controlled by it, does hereby expressly fully release and
forever discharge Castle Creek and Castle Creek's employees, subsidiaries,
affiliates, owners, officers, directors, Board of Directors, managers,
administrators, attorneys, agents, representatives, successors (including
successors to the business by way of asset purchase), assigns, and all persons
acting by, through, or in concert with them (collectively, the "Castle Creek
Releasees") from any and all past, present or future claim, demand, order,
directive, action, suit, cause of action, request for declaratory relief,
cross-claim, third-party action, arbitration or mediation, demand, loss of
services, compensation, charges, complaints, debts, obligations, promises or
agreements, any and all costs, losses (including actual, alleged, threatened or
potential loss of profit or business), damages (including all consequential,
punitive and exemplary damages), and expenses (including all attorneys' fees and
other professional fees), and any and all known or unknown bodily injuries or
personal injuries (whether sounding in tort, contract, equity, nuisance,
trespass, negligence, or strict liability), loss of quality of life, property
damage (including but not limited to injury to property) or liabilities of any
kind, whether at law or in equity, whether presently known, unknown or
unknowable, or any other statutory, regulatory, administrative or common law
cause of action of any sort or nature from the beginning of the world to the
date hereof, which Voxware may have or claim to

                                       4

<PAGE>

have against the Castle Creek Releasees arising out of, from or relating in any
way to any occurrence up to and including the date of execution of this
Settlement Agreement (the "Voxware Claims").

     Upon the date of Closing, Voxware forever waives, surrenders and abandons
any and all Voxware Claims, on its own behalf and on behalf of all persons and
entities acting through or under, in control of it or controlled by it. Voxware
hereby expressly assumes the risk that there may be Voxware Claims against
Castle Creek or other Castle Creek Releasees that are unknown or unknowable to
it and that the damages or costs sustained by them as a result of any released
Voxware Claims may be greater than each currently realizes, that the damages may
increase in amount or in severity over time, that the injuries, damages, and/or
claims may be progressive, cumulative, unknown and/or unforeseeable, and that
there may be hidden, unknown and unknowable damages or costs. Voxware hereby
acknowledges that it is aware that it may hereafter discover facts in addition
to or different from those it now knows or believes to be true with respect to
the subject matter of the Voxware Claims, but that it is its intention hereby to
fully, finally and forever to settle and release any and all matters, disputes
and differences, known or unknown, suspected or unsuspected, which do now or may
in the future exist and that, in furtherance of such intention, releases hereby
given shall be and remain in effect as full and complete general releases,
notwithstanding the discovery or existence of any such additional or different
facts.

     Voxware warrants and represents that it has not filed any Voxware Claims
(by means of any individual or group charges or complaints or in any other
manner) against Castle Creek or any other Castle Creek Releasees before any
court or other agency of federal, state or local government, or any other forum.

                                       5

<PAGE>

     Voxware warrants and represents to the best of Voxware's knowledge that no
Voxware Claim has been asserted or filed against Castle Creek or any other
Castle Creek Releasees by any person or entity acting through or under, in
control of or controlled by Voxware.

     8. Release by Castle Creek. Upon the date of Closing, Castle Creek, on its
own behalf and on behalf of all persons and entities acting through or under, in
control of it or controlled by it, does hereby expressly fully release and
forever discharge (a) Voxware, and Voxware's employees, subsidiaries,
affiliates, owners (other than Voxware Investor Releasees (as defined below)),
officers, directors, Board of Directors, managers, administrators, attorneys,
agents, representatives, successors (including successors to the business by way
of asset purchase), assigns, and all persons acting by, through, or in concert
with them (collectively, the "Voxware Company Releasees") and (b) each of the
Purchasers under the Series D Purchase Agreement, as listed on Exhibit 1.01
thereto, together with such Purchasers' respective employees, subsidiaries,
affiliates, shareholders, investors, owners, officers, directors, Board of
Directors, managers, administrators, attorneys, agents, representatives,
successors (including successors to the business by way of asset purchase),
assigns, and all persons acting by, through, or in concert with them
(collectively, the "Voxware Investor Releasees" and, together with the Voxware
Company Releasees, the "Voxware Releasees") from any and all past, present or
future claim, demand, order, directive, action, suit, cause of action, request
for declaratory relief, cross-claim, third-party action, arbitration or
mediation, demand, loss of services, compensation, charges, complaints, debts,
obligations, promises or agreements, any and all costs, losses (including
actual, alleged, threatened or potential loss of profit or business), damages
(including all consequential, punitive and exemplary damages), and expenses
(including all attorneys' fees and other professional fees), and any and all
known or unknown bodily injuries or personal

                                       6

<PAGE>

injuries (whether sounding in tort, contract, equity, nuisance, trespass,
negligence, or strict liability), loss of quality of life, property damage
(including but not limited to injury to property) or liabilities of any kind,
whether at law or in equity, whether presently known, unknown or unknowable, or
any other statutory, regulatory, administrative or common law cause of action of
any sort or nature from the beginning of the world to the date hereof, which
Castle Creek may have or claim to have against the Voxware Releasees as follows,
(i) in the case of the Voxware Company Releasees, arising out of, from or
relating in any way to any occurrence up to and including the date of execution
of this Settlement Agreement (the "Castle Creek Company Claims"), including
without limitation any claims relating to the terms of the Series B Stock, the
Series D Stock or the Financing, and, (ii) in the case of Voxware Investor
Releasees, arising out of, from or relating in any way to the terms of the
Series B Stock or the Series D Stock or any occurrence otherwise arising out of,
from or relating in any way to the Financing (the "Castle Creek Investor
Claims", collectively with the Castle Creek Company Claims, shall be referred to
as the "Castle Creek Claims"); provided, however, that nothing herein shall be
deemed to limit (a) Castle Creek's rights or claims under the Series D Stock
Purchase Agreement arising out of, from or relating in any way to any occurrence
after the date of execution of this Settlement Agreement or (b) Castle Creek's
rights or claims under the other transaction documents related to the Financing
to which Voxware is a party or otherwise bound, including without limitation the
Amended and Restated Charter, arising out of, from or relating in any way to any
occurrence after the Closing.

     Upon the date of Closing, Castle Creek forever waives, surrenders and
abandons any and all Castle Creek Claims, on its own behalf and on behalf of all
persons and entities acting through or under, or in control of it or controlled
by it. Castle Creek hereby expressly assumes

                                       7

<PAGE>

the risk that there may be Castle Creek Claims against Voxware or other Voxware
Releasees that are unknown or unknowable to it and that the damages or costs
sustained by them as a result of any released Castle Creek Claims may be greater
than each currently realizes, that the damages may increase in amount or in
severity over time, that the injuries, damages, and/or claims may be
progressive, cumulative, unknown and/or unforeseeable, and that there may be
hidden, unknown and unknowable damages or costs. Castle Creek hereby
acknowledges that it is aware that it may hereafter discover facts in addition
to or different from those it now knows or believes to be true with respect to
the subject matter of the Castle Creek Claims, but that it is its intention
hereby to fully, finally and forever to settle and release any and all matters,
disputes and differences, known or unknown, suspected or unsuspected, which do
now or may in the future exist and that, in furtherance of such intention,
releases hereby given shall be and remain in effect as full and complete general
releases, notwithstanding the discovery or existence of any such additional or
different facts.

     Castle Creek warrants and represents that, other than the Litigation, it
has not filed any Castle Creek Claims (by means of any individual or group
charges or complaints or in any other manner) against Voxware or any other
Voxware Releasees before any court or other agency of federal, state or local
government, or any other forum.

     Castle Creek warrants and represents that, to the best of Castle Creek's
knowledge, other than the Litigation, no Castle Creek Claim has been asserted or
filed against Voxware or any other Voxware Releasees by any person or entity
acting through or under, in control of or controlled by Castle Creek.

     9.   Covenant Not to Sue. The actions to be taken in furtherance of this
Settlement Agreement shall resolve any and all Voxware Claims and Castle Creek
Claims. Upon the

                                       8

<PAGE>

Closing: (a) Voxware covenants that neither Voxware, nor any entity who controls
it or is controlled by it, shall sue, or take any civil or administrative
action, or bring any other proceeding against Castle Creek or any other Castle
Creek Releasees to seek relief with respect to any Voxware Claims; and (b)
Castle Creek covenants that neither Castle Creek nor any entity who controls it
or is controlled by it shall sue, or take any civil or administrative action, or
bring any other proceeding against Voxware or any other Voxware Releasees to
seek relief with respect to any Castle Creek Claims. The Parties further
expressly covenant and agree that they will not participate in any charge or
complaint that may be made by and person or organization on their respective
behalf.

     10.  Foreclosure from Claims Against Third Parties. Except as specifically
set forth herein, the Parties, each on its own behalf and on behalf of all
persons and entities acting through or under, in control of it or controlled by
it, do hereby agree: (a) that this Settlement Agreement affirmatively and
expressly forecloses Voxware and all persons and entities acting through or
under, in control of it or controlled by it from prosecuting Voxware Claims
against other third persons or entities, including all Castle Creek Releasees;
and (b) that this Settlement Agreement affirmatively and expressly forecloses
Castle Creek and all persons and entities acting through or under, in control of
or controlled by it, from prosecuting Castle Creek Claims against other third
persons or entities, including all Voxware Releasees. Except as specifically set
forth herein, the Parties further expressly covenant and agree forever to
refrain from bringing any suit or proceeding at law or in equity against third
parties or entities relating to any Voxware Claims or Castle Creek Claims.
Notwithstanding the foregoing or any other provision of this Settlement
Agreement, any Party shall have the right to assert a Voxware Claim or a Castle
Creek Claim against any Castle Creek Releasee or Voxware Releasee, respectively,
solely in the event that

                                       9

<PAGE>

such Castle Creek Releasee or Voxware Releasee asserts a Castle Creek Claim or a
Voxware Claim against such Party in a court of competent jurisdiction.

     11.  Enforcement. Each of the Parties acknowledge and agree that
irreparable damage would occur if any of the provisions of this Settlement
Agreement were not performed in accordance with their specific terms or were
otherwise breached and that monetary damages would be an inadequate remedy
therefore. Accordingly, each of the Parties will be entitled to seek an
injunction or injunctions to prevent breaches of this Settlement Agreement and
to enforce specifically its provisions in any foreign court, court of the United
States or any state court having jurisdiction, this being in addition to any
other remedy to which the Parties may be entitled at law or in equity.

     12.  Assignment. Voxware and Castle Creek each represent and warrant that,
as of the date hereof and the Closing, neither Party has or will have assigned,
transferred, conveyed, or purported to assign, transfer or convey any Voxware
Claims or Castle Creek Claims, respectively, to any other person or entity, nor
shall they hereafter do so.

     13.  No Admission. By entering into this Settlement Agreement, the Parties
do not intend to make, nor shall they be deemed to have made, any admission of
any kind. Nothing contained in this Settlement Agreement shall be construed as
an admission by any Party as to the merit or lack of merit of any particular
theory relating to the payment of Voxware Claims or Castle Creek Claims, as
applicable. Statements made in the course of negotiations have been and shall be
without prejudice to the rights of the Parties in any disputes or transactions
with any other persons or entities not a party to this Settlement Agreement.

     14.  Protection Afforded. In addition to any confidentiality provisions
contained herein and not by way of limitation thereof, this Settlement Agreement
shall be deemed to fall

                                       10

<PAGE>

within the protection afforded compromises and offers to compromise by Rule 408
of the Federal Rules of Evidence and any similar law provision.

     15.  Notices. Any statements, communications or notices to be provided
pursuant to this Settlement Agreement shall be in writing and shall be sent by
certified mail, return receipt requested, postage prepaid, to the attention of
the Parties at the addresses indicated below, until such time as notice of any
change of person to be notified or change of address is forwarded to all
Parties:

<TABLE>
<S>                   <C>                                      <C>                <C>
If to Voxware:        Nicholas Narlis,                         with a copy to:    Hale and Dorr LLP
                      Senior Vice President and Chief                             650 College Road East
                      Financial Officer                                           Princeton, NJ 08540
                      Voxware, Inc.                                               Attn: William J. Thomas, Esq.
                      168 Franklin Corner Road
                      Lawrenceville, NJ  08648

If to Castle Creek:   Thomas A. Frei                           with a copy to:    Richard M. Beck, Esquire
                      Castle Creek Technology Partners, LLC                       Klehr, Harrison, Harvey,
                      111 West Jackson Boulevard                                  Branzburg & Ellers LLP
                      Chicago, Illinois 60604                                     919 Market Street - Suite 1000
                                                                                  Wilmington, DE 19801-3062
</TABLE>

     Or to such other addresses as the Parties hereto may from time to time
designate in writing by notice to the other.

     16.  Other Assurances. Each Party shall provide such further and other
written assurances reasonably necessary to effectuate the terms and intent
hereof.

     17.  Entire Agreement. This Settlement Agreement is the complete and entire
agreement between the Parties and may not be modified, changed, contradicted,
added to or altered in any way by any previous or concurrent written or oral
agreements or any subsequent oral agreements. All prior negotiations, oral or
written, are merged in this Settlement Agreement. All modifications and
amendments to this Settlement Agreement must be made in

                                       11

<PAGE>

writing and signed by each of the Parties hereto.

     18.  Severability. No determination by any court, governmental body,
arbitration or other judicial body that any provision of this Settlement
Agreement or amendment is invalid or unenforceable in any instance shall effect
the validity or enforceability of any other provision of this Settlement
Agreement. Each provision shall be valid and enforceable to the fullest extent
permitted by, and shall be construed where and whenever possible as being
consistent with, applicable law.

     19.  No Waiver. No failure or delay on the part of any Party to exercise
any power, right or privilege under this Settlement Agreement shall impair any
such power, right or privilege, or be construed to be a waiver of any default or
an acquiescence therein, nor shall any single or partial exercise of such power,
right or privilege preclude other or further exercise thereof or of any other
right, power or privilege.

     20.  Successors and Assigns; Third Party Rights. This Settlement Agreement
shall bind the successors and assigns of the Parties, and inure to the benefit
of any successor or assign of any of the Parties; provided, however, that no
Party may assign this Settlement Agreement, other than by merger, consolidation,
sale of substantially all of its stock or assts, or a similar transaction,
without the consent of each of the other Parties. Subject to the last sentence
of Section 10 hereof, each Castle Creek Releasee and each Voxware Releasee shall
have the right to enforce this Settlement Agreement, in accordance with the
terms hereof, against any Party (and any person or entity acting through or
under, in control of or controlled by, any Party) in the event that any Voxware
Claim or Castle Creek Claim is asserted against such Voxware Releasee or Castle
Creek Releasee.

                                       12

<PAGE>

     21. Governing Law. This Settlement Agreement shall be governed by, and
construed in accordance with the laws of the State of Delaware without regard to
the principles of conflict of laws.

     22. Consent to Jurisdiction; Waiver of Jury Trial. Each of the Parties
hereto: (a) except as provided in Section 11 hereof, accepts, generally and
unconditionally, the exclusive jurisdiction of the state or federal courts
located in the State of Delaware and any related appellate courts and
irrevocably agrees to be bound by any judgment rendered thereby in connection
with any claim arising under or related to this Settlement Agreement or the
breach or enforcement thereof (a "Release Related Claim"); and (b) irrevocably
waives any objection it may now or hereafter have as to the venue of any such
proceeding brought in such a court or that such a court is an inconvenient
forum. Each of the Parties hereto waives personal service of process and
consents that service of process upon it may be made by certified mail, return
receipt requested, at the addresses specified or determined in accordance with
the provisions of Section 15, and service so made shall be deemed completed on
the third business day after such service is deposited in the mail. Nothing
herein shall affect the right of any Person to serve process in any other manner
permitted by law or shall limit the right of any Person to bring proceedings in
the courts of any other jurisdiction. For purposes of this Section 22, "Person"
means any natural person, corporation, partnership, joint venture, limited
liability company, association, joint stock company, trust, unincorporated
organization, governmental body, or any other entity whatsoever. The Parties
shall independently bear their own costs related to any dispute brought to the
attention of the Court, including attorneys' fees and costs. EACH OF THE PARTIES
HEREBY WAIVES TRIAL BY JURY IN ANY JUDICIAL PROCEEDING INVOLVING ANY RELEASE
RELATED CLAIM.

                                       13

<PAGE>

     23. Authorship. The Parties agree that this Settlement Agreement reflects
the joint drafting efforts of all Parties. In the event any dispute,
disagreement or controversy arises regarding this Settlement Agreement, the
Parties shall be considered joint authors and no provision shall be interpreted
against any Party because of authorship. Each Party also agrees that it is fully
informed as to the meaning and intent of this Settlement Agreement and has been
advised by independent counsel of its choosing in that regard.

     24. Execution. This Settlement Agreement may be executed in any number of
counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same instrument.

     25. Facsimile Execution. Delivery of an executed counterpart of this
Settlement Agreement by facsimile shall be equally as effective as delivery of a
manually executed counterpart of this Settlement Agreement. Any Party delivering
an executed counterpart of this Settlement Agreement by facsimile also shall
deliver a manually executed counterpart of this Settlement Agreement, but the
failure to deliver a manually executed counterpart shall not affect the
validity, enforceability or binding effect of this Settlement Agreement.

     26. Authority to Sign Settlement Agreement. The individuals signing this
Settlement Agreement hereby represent and warrant that they are empowered and
authorized to sign on behalf of and bind the Parties for whom they have signed.

                            [Signature page follows]

                                       14

<PAGE>

                                                                  EXECUTION COPY

         IN WITNESS WHEREOF, the Parties have caused this Settlement Agreement
to be duly executed under seal as of and on the date written below.

                                          VOXWARE, INC.

                                          By: /s/ Nicholas Narlis
                                              ----------------------------------
Date: 4/17/03                             Name: Nicholas Narlis
      -----------------------------             --------------------------------
                                          Title: Senior Vice President and CEO
                                                 -------------------------------

                                          CASTLE CREEK TECHNOLOGY PARTNERS, LLC

                                          By: /s/ Thomas A. Frei
                                              ----------------------------------
Date: 4/17/03                             Name: /s/ Thomas A. Frei
      -----------------------------             --------------------------------
                                          Title: Managing Director
                                                 -------------------------------

<PAGE>

State of New Jersey

County of Mercer

     Before me, a notary public, personally appeared Nicholas Narlis, who, being
duly sworn, stated that he has executed the foregoing Settlement Agreement, on
behalf of Voxware, Inc. and is duly authorized to do so.

          Witness my hand and notarial seal this 17/th/ day of April, 2003.

/s/ Janet Hoffner
-----------------------
Notary Public

My Commission expires:  May 5, 2008
                        ---------------------

<PAGE>

State of Illinois

County of Cook

          Before me, a notary public, personally appeared Thomas A. Frei, who,
being duly sworn, stated that he has executed the foregoing Settlement
Agreement, on behalf of Castle Creek Technology Partners, LLC and is duly
authorized to do so.

          Witness my hand and notarial seal this 17/th/ day of April, 2003.

Ruth Rodriquez
------------------------------
Notary Public

                                                                   /SEAL/

My Commission expires:  8/11/06

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