Document:

Registartion Rights Agreement

 Exhibit 10.5 
 REGISTRATION RIGHTS AGREEMENT 
 By and Among 
 PLATINUM RESEARCH ORGANIZATION, INC. 
 and the 
 INVESTORS NAMED HEREIN 
 September 22, 2008 

 TABLE OF CONTENTS 
  

					
	 	  	 	  	Page
	ARTICLE I DEFINITIONS; RULES OF CONSTRUCTION	  	1
			
	 1.1
	  	DEFINITIONS	  	1
			
	 1.2
	  	RULES OF CONSTRUCTION	  	4
		
	ARTICLE II REGISTRATION RIGHTS	  	5
			
	 2.1
	  	REQUIRED REGISTRATION	  	5
			
	 2.2
	  	PIGGYBACK REGISTRATION	  	5
			
	 2.3
	  	REGISTRATIONS ON FORM S-3	  	6
			
	 2.4
	  	PREPARATION AND FILING	  	6
			
	 2.5
	  	EXPENSES	  	9
			
	 2.6
	  	INDEMNIFICATION	  	9
			
	 2.7
	  	UNDERWRITING AGREEMENT	  	11
			
	 2.8
	  	SUSPENSION	  	12
			
	 2.9
	  	INFORMATION BY HOLDER	  	12
			
	 2.10
	  	EXCHANGE ACT COMPLIANCE	  	13
			
	 2.11
	  	NO CONFLICT OF RIGHTS	  	13
			
	 2.12
	  	TRANSFER OF REGISTRATION RIGHTS	  	13
			
	 2.13
	  	TERMINATION	  	13
		
	ARTICLE III SECURITIES LAW COMPLIANCE; LEGENDS	  	14
			
	 3.1
	  	RESTRICTION ON TRANSFER	  	14
			
	 3.2
	  	RESTRICTIVE LEGENDS	  	14
		
	ARTICLE IV AMENDMENT AND WAIVERS	  	14
			
	 4.1
	  	AMENDMENT	  	14
			
	 4.2
	  	WAIVERS; EXTENSIONS	  	15

  

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	ARTICLE V TERMINATION	  	15
		
	ARTICLE VI MISCELLANEOUS	  	15
			
	 6.1
	  	SEVERABILITY	  	15
			
	 6.2
	  	ENTIRE AGREEMENT	  	15
			
	 6.3
	  	INDEPENDENCE OF AGREEMENTS, COVENANTS, REPRESENTATIONS AND WARRANTIES	  	16
			
	 6.4
	  	SUCCESSORS AND ASSIGNS	  	16
			
	 6.5
	  	COUNTERPARTS; FACSIMILE SIGNATURES	  	16
			
	 6.6
	  	REMEDIES	  	16
			
	 6.7
	  	NOTICES	  	17
			
	 6.8
	  	GOVERNING LAW; WAIVER OF JURY TRIAL	  	17
			
	 6.9
	  	FURTHER ASSURANCES	  	18
			
	 6.10
	  	CONFLICTING AGREEMENTS	  	18
			
	 6.11
	  	NO THIRD PARTY RELIANCE	  	18

  

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 REGISTRATION RIGHTS AGREEMENT (“Agreement”) dated as of September 22,, 2008, among
PLATINUM RESEARCH, INC., a Delaware corporation (the “Company”), and the INVESTORS of the Company listed on Schedule I hereto, and their permitted assigns (collectively, the “Investors”). 
 RECITALS: 
 A. The Company,
Platinum Intellectual Property, L.P. (“PIP”), a Texas limited partnership, PRO Operations, L.P., a Texas limited partnership, and Seattle City Employees’ Retirement System, a single-employer defined-benefit public employee
retirement system (“SCERS”, who is an “Investor”) are each a party to that certain Senior Secured Note Purchase Agreement dated as of December 3, 2004, as amended by that certain Omnibus Amendment, dated as of
January 9, 2007, as further amended by that certain Second Omnibus Amendment, dated as of the date of this Agreement (the “Purchase Agreement”), and in connection therewith, the Company delivered that certain Senior Secured
Note dated December 3, 2004 to SCERS and SCERS loaned the Company an aggregate principal amount of $6,000,000. 
 B. Each of the
Company, PRO Operations and PIP have made a promissory note (the “New Note”), dated as of the date of this Agreement, to Alpina Lending, L.P. (the “New Lender”) pursuant to which the New Lender, on its own behalf
and as agent for the individuals and entities identified in the New Note, has agreed to loan up to $1,500,000 principal amount to the Company, PRO Operations and PIP. 
 C. As a condition to the consummation of the transactions contemplated by the New Note, PIP, the Company and PRO Operations are required to amend certain provisions of the Purchase Agreement to, among other things,
(i) make the Participation Payments convertible, at the option of SCERS, convertible into Common Stock of the Company and (ii) provide SCERS, pursuant to this Agreement, certain registration with respect to the Common Stock issued as
Participation Payments. 
 ARTICLE I 
 DEFINITIONS; RULES OF CONSTRUCTION 
  

	1.1	DEFINITIONS. 

 Capitalized terms used in this Agreement and
not defined herein have the meanings ascribed to them in the Purchase Agreement. The following capitalized terms used in this Agreement have the meanings ascribed to them below: 
 “Board” means the board of directors of the Company. 
 “Bylaws” means the Bylaws of the Company, as amended, modified, supplemented or restated and in effect from time to time. 
 “Certificate” means the Certificate of Incorporation of the Company, as amended and in effect at the time of determination, including any certificates of designations filed with the Secretary of State
of the State of Delaware pursuant to the terms thereof. 

 “Commission” means the United States Securities and Exchange Commission. 
 “Common Stock” has the meaning1 ascribed to it in the Recitals. 
 “Company” has the meaning ascribed to it in the Caption and shall include any Subsidiary of the Company. 
 “Document(s)” means, individually or collectively, this Agreement, the Purchase Agreement and all other documents executed in connection
with this transaction. 
 “Equity Incentive Plans” means any stock option, issuance, appreciation rights or other equity
incentive plan for the independent directors, officers, and full time employees of, and consultants to, the Company which plan has been approved by the Board. 
 “Exchange Act” means the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder. 
 “Governmental Authority” means any court, administrative agency, commission or other governmental authority 
 “Information” has the meaning ascribed to it in Section 2.4(a)(ix). 
 “Inspectors” has the meaning ascribed to it in Section 2.4(a)(ix). 
 “Investors’ Counsel” has the meaning ascribed to such term in Section 2.4(a)(ii). 
 “Material Sale” means (i) the sale (in one or a series of related transactions) of all or substantially all of the Company’s
assets to a Person or a group of Persons acting in concert (including, without limitation, the sale of a division of the Company or such assets of the Company that would materially change the nature or composition of the Company’s business
lines), (ii) the sale or transfer (in one or a series of related transactions) of a majority of the outstanding capital stock of the Company, to one Person or a group of Persons acting in concert, or (iii) the merger or consolidation of
the Company with or into another Person that is not an Affiliate of the Company, in each case in clauses (ii) and (iii) above under circumstances in which the holders of a majority in voting power of the outstanding capital stock of the
Company immediately prior to such transaction own less than a majority in voting power of the outstanding capital stock of the Company, or the surviving or resulting corporation or acquirer, as the case may be, immediately following such
transaction; provided, however, that a debt or equity financing where (x) the Company is the surviving corporation and (y) individuals who served as members of the Board immediately prior to such financing constitute at least three-fourths
(3/4) of the members of the Board (rounded up to the nearest whole number) after such financing, shall not be deemed a Material Sale. A sale (or multiple related sales) of one or more Subsidiaries (whether by way of merger, consolidation,
reorganization or sale of all or substantially all assets or securities) which constitutes all or substantially all of the consolidated assets of the Company shall be deemed a Material Sale. 
 “Other Shares” means at any time those shares of Common Stock that do not constitute Primary Shares or Registrable Shares. 

 

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 “Participation Payment” means those payments made to SCERS pursuant to the Purchase
Agreement. 
 “Primary Shares” means, at any time, the authorized but unissued shares of Common Stock or Common Stock held
by the Company in its treasury. 
 “Prospectus” means the prospectus included in a Registration Statement, including any
prospectus subject to completion, and any such prospectus as amended or supplemented by any prospectus supplement with respect to the terms of the offering of any portion of the Registrable Shares and, in each case, by all other amendments and
supplements to such prospectus, including post-effective amendments, and in each case including all material incorporated by reference therein. 
 “Public Offering” means the closing of a public offering of Common Stock solely for cash pursuant to a Registration Statement declared effective under the Securities Act, except that a Public Offering shall not include an
offering of securities to be issued as consideration in connection with a business acquisition pursuant to Rule 145 of the Securities Act, an offering of securities issuable pursuant to an Equity Incentive Plan, a registration in which the only
stock being registered is Common Stock issuable upon conversion of preferred stock or debt securities which are also being registered or any registration on any form which does not include substantially the same information as would be required to
be included in a registration statement covering the sale of Registrable Shares hereunder. 
 “Public Sale” means any sale,
occurring simultaneously with or after a Public Offering, of securities to the public pursuant to an offering registered under the Securities Act or to the public through a broker, dealer or market maker (pursuant to the provisions of Rule 144 or
otherwise). 
 “Purchase Agreement” has the meaning ascribed to it in the Recitals. 
 “Records” has the meaning ascribed to it in Section 2.4(a)(ix). 
 “Registrable Shares” means, at any time, (a) Common Stock issued or issuable upon conversion of one or more Participation Payments
held, or hereafter acquired, by the Investors and their permitted assigns, (b) any Common Stock issued as (or issuable upon the conversion or exercise of any warrant, right or other security which is issued as) a dividend or other distribution
with respect to, or in exchange for or in replacement of, such above-described common stock. Notwithstanding the foregoing, Registrable Shares shall not include any securities sold by a Person to the public pursuant to a Registration Statement which
has been declared effective, or Rule 144, in each case where the restrictive legends and transfer restrictions with respect to Common Stock are removed and the Common Stock in the hands of the purchaser is freely transferable without any restriction
or registration under the Securities Act in any public or private transaction. 
 “Registration Statement” means any
registration statement of the Company which covers any of the Registrable Shares, and all amendments and supplements to any such Registration Statement, including post-effective amendments, in each case including the Prospectus contained therein,
all exhibits thereto and all material incorporated by reference therein. 
  

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 “Representative” of a Person shall be construed broadly and shall include such
Person’s partners, officers, directors, employees, agents, counsel, accountants and other representatives. 
 “Requisite
Investors” means those Investors who hold in the aggregate at least a majority of the outstanding Common Stock held by all Investors at the time of determination. In any situation where consent from or approval of the Requisite Investors is
required, the Company may select the Investors constituting the Requisite Investors in its discretion and the requirement shall be deemed satisfied so long as the consent or approval is received from Investors who hold the requisite percentage of
Common Stock called for herein. In such case the Company shall promptly provide notice of such consent or approval to each of the Investors. 
 “Rule 144” means Rule 144 and all other subdivisions thereof) promulgated by the Commission under the Securities Act, as such rule may be amended from time to time, or any similar or successor rule then in force.

 “Securities Act” means the Securities Act of 1933, as amended. 
 “Suspension Period” has the meaning ascribed to it in Sections 2.8. 
 “Transfer” of securities shall be construed broadly and shall include any issuance, sale, assignment, transfer, participation, gift,
bequest, distribution, or other disposition thereof, or any pledge or hypothecation thereof, placement of a Lien thereon or grant of a security interest therein or other encumbrance thereon, in each case whether voluntary or involuntary or by
operation of law or otherwise. “Transferor” means a Person engaging in a Transfer of securities, and “Transferee” means a Person acquiring securities through a Transfer. 
  

	1.2	RULES OF CONSTRUCTION. 

 The term this
“Agreement” means this agreement together with all schedules and exhibits hereto, as the same may from time to time be amended, modified, supplemented or restated in accordance with the terms hereof. The use in this Agreement of the
term “including” means “including, without limitation.” The words “herein,” “hereof,” “hereunder” and other words of similar import refer to this Agreement as a whole, including the schedules and
exhibits, as the same may from time to time be amended, modified, supplemented or restated, and not to any particular section, subsection, paragraph, subparagraph or clause contained in this Agreement. All references to sections, schedules and
exhibits mean the sections of this Agreement and the schedules and exhibits attached to this Agreement, except where otherwise stated. The title of and the section and paragraph headings in this Agreement are for convenience of reference only and
shall not govern or affect the interpretation of any of the terms or provisions of this Agreement. The use herein of the masculine, feminine or neuter forms shall also denote the other forms, as in each case the context may require or permit. Where
specific language is used to clarify by example a general statement contained herein, such specific language shall not be deemed to modify, limit or restrict in any manner the construction of the general statement to which it relates. The language
used in this Agreement has been chosen by the parties to express 

  

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their mutual intent, and no rule of strict construction shall be applied against any party. Unless expressly provided otherwise, the measure of a period of
one month or year for purposes of this Agreement shall be that date of the following month or year corresponding to the starting date, provided that if no corresponding date exists, the measure shall be that date of the following month or year
corresponding to the next day following the starting date. For example, one month following February 18 is March 18, and one month following March 31 is May 1. 
 ARTICLE II 
 REGISTRATION RIGHTS 
  

	2.1	REQUIRED REGISTRATION. 

 (a) If at any time the Company
shall be requested by the Requisite Investors to effect the registration under the Securities Act of Registrable Shares having an aggregate gross offering price (before underwriters discounts and commissions) of at least $500,000, it shall within
ten (10) days give written notice to the other Investors of its requirement to so register such Registrable Shares (which notice shall specify the number of Registrable Shares proposed to be included in such registration and the intended method
of distribution, which may be pursuant to a shelf registration) and, upon the written request, delivered to the Company within 30 days after delivery of any such notice by the Company, of such other Investors to include in such registration
Registrable Shares of such Investors (which request shall specify the number of Registrable Shares proposed to be included in such registration), the Company shall, subject to Section 2.1(b) below, promptly use reasonable commercial efforts to
effect such registration on an appropriate form (but not later than 150 days after the initial request by the Requisite Investors or 30 days after the Commission issues a no review letter), under the Securities Act of the Registrable Shares which
the Company has been so requested to register. No securities held by a third party shall be included in a Registration Statement filed pursuant to this Section 2.1(a) without the consent of the Requisite Investors. 
 (b) A requested registration under Section 2.1(a) may be rescinded prior to such registration being declared effective by the Commission by written
notice to the Company from the Requisite Investors. 
  

	2.2	PIGGYBACK REGISTRATION. 

 If the Company proposes for any
reason to register Primary Shares or Other Shares under the Securities Act (other than on Form S-4 or Form S-8 promulgated under the Securities Act or any successor forms thereto), it shall promptly give written notice to each Investor of its
intention so to register the Primary Shares or Other Shares and, upon the written request, given within 20 days after delivery of any such notice by the Company, of any such Investor to include in such registration Registrable Shares (which request
shall specify the number of Registrable Shares proposed to be included in such registration), the Company shall cause all such Registrable Shares to be included in such registration on the same terms and conditions as the Securities otherwise being
sold in such registration. 
  

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	2.3	REGISTRATIONS ON FORM S-3. 

 (a) Anything contained in this
Section 2.3 to the contrary notwithstanding, at such time as and for so long as the Company shall have qualified for the use of Form S-3 promulgated under the Securities Act or any successor form thereto, the Requisite Investors shall have the
right to request in writing an unlimited number of registrations on Form S-3, or such successor form, of Registrable Shares, which request or requests shall (i) specify the number of Registrable Shares intended to be sold or disposed of,
(ii) state the intended method of disposition of such Registrable Shares and (iii) relate to Registrable Shares having an aggregate gross offering price (before underwriting discounts and commissions) of at least $500,000, and upon receipt
of such request, the Company shall use reasonable commercial efforts promptly to effect the registration under the Securities Act of the Registrable Shares so requested to be registered. Whenever the Company is required by this Section 2.3(a)
to use reasonable commercial efforts to effect the registration of Registrable Shares, each of the procedures and requirements of Section 2.1 (including but not limited to the requirement that the Company notify all holders of Registrable
Shares from whom notice has not been received and provide them with the opportunity to participate in the offering) shall apply to such registration. 
 (b) Anything contained in Section 2.3(a) to the contrary notwithstanding, the Company shall not be obligated to effect such registration if it is requested within six months after a registered offering of the
Company in which the Investors were given the opportunity to participate. 
  

	2.4	PREPARATION AND FILING. 

 (a) If and whenever the Company
is under an obligation pursuant to the provisions of this Article II to effect the registration of any Registrable Shares, the Company shall, as expeditiously as practicable: 
 (i) With respect to registrations pursuant to Sections 2.1, 2.2 and 2.3, use reasonable commercial efforts to cause a Registration
Statement that registers such Registrable Shares to become and remain effective for a period that will terminate upon the earlier of (i) the date on which all Registrable Securities, covered by such Registration Statement, as amended from time
to time, have been sold, and (ii) the date on which all Registrable Securities may be sold pursuant to Rule 144 (the “Registration Period”); 
 (ii) furnish, at least five Business Days before filing a Registration Statement that registers such Registrable Shares, a Prospectus
relating thereto and any amendments or supplements relating to such Registration Statement or Prospectus, to one counsel selected by, in the case of a Registration initiated pursuant to Section 2.1(a) or 2.3, the Requisite Investors (the
“Investors’ Counsel”), copies of all such documents proposed to be filed (it being understood that such five Business Day period need not apply to successive drafts of the same document proposed to be filed so long as such
successive drafts are supplied to the Investors’ Counsel in advance of the proposed filing by a period of time that is customary and reasonable under the circumstances); 
 (iii) prepare and file with the Commission such amendments and supplements to such Registration Statement and the Prospectus used in
connection therewith as may be necessary to keep such Registration Statement effective for at least the period set forth in Section 2.4(a)(i) or until all of such Registrable Shares have been disposed of (if earlier) and to comply with the
provisions of the Securities Act with respect to the sale or other disposition of such Registrable Shares; 
  

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 (iv) notify the Investors’ Counsel promptly in writing (A) of any comments by
the Commission with respect to such Registration Statement or Prospectus, or any request by the Commission for the amending or supplementing thereof or for additional information with respect thereto, (B) of the issuance by the Commission of
any stop order suspending the effectiveness of such Registration Statement or Prospectus or any amendment or supplement thereto or the initiation of any proceedings for that purpose (and the Company shall use reasonable commercial efforts to prevent
the issuance thereof or, if issued, to obtain its withdrawal) and (C) of the receipt by the Company of any notification with respect to the suspension of the qualification of such Registrable Shares for sale in any jurisdiction or the
initiation or threatening of any proceeding for such purposes; 
 (v) use reasonable commercial efforts to register or qualify
such Registrable Shares under such other securities or blue sky laws of such jurisdictions as any seller of Registrable Shares reasonably requests and do any and all other acts and things which may be reasonably necessary or advisable to enable such
seller of Registrable Shares to consummate the disposition in such jurisdictions of the Registrable Shares owned by such seller; 
 (vi) furnish to each seller of such Registrable Shares such number of copies of a summary Prospectus or other Prospectus, including a preliminary Prospectus, in conformity with the requirements of the Securities Act, and such other
documents as such seller of Registrable Shares may reasonably request in order to facilitate the public sale or other disposition of such Registrable Shares; 
 (vii) use reasonable commercial efforts to cause such Registrable Shares to be registered with or approved by such other Governmental
Authorities as may be necessary by virtue of the business and operations of the Company to enable the seller or sellers thereof to consummate the disposition of such Registrable Shares; 
 (viii) notify on a timely basis each seller of such Registrable Shares at any time when a Prospectus relating to such Registrable Shares
is required to be delivered under the Securities Act within the appropriate period mentioned in clause (i) of this Section 2.4(a) of the happening of any event as a result of which the Prospectus included in such Registration Statement, as
then in effect, includes an untrue statement of a material fact or omits to state a material fact required to be stated therein or necessary to make the statements therein not misleading in light of the circumstances then existing and, at the
request of such seller, prepare and furnish to such seller a reasonable number of copies of a supplement to or an amendment of such Prospectus as may be necessary so that, as thereafter delivered to the offerees of such shares, such Prospectus shall
not include an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein not misleading in light of the circumstances then existing; 
  

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 (ix) make available for inspection by any seller of such Registrable Shares, any
underwriter participating in any disposition pursuant to such Registration Statement and any attorney, accountant or other agent retained by any such seller or underwriter (collectively, the “Inspectors”), all pertinent financial,
business and other records, pertinent corporate documents and properties of the Company (collectively, the “Records”), as shall be reasonably necessary to enable them to exercise their due diligence responsibility, and cause the
Company’s officers, directors and employees to supply all information (together with the Records, the “Information”) reasonably requested by any such Inspector in connection with such Registration Statement (and any of the
Information which the Company determines in good faith to be confidential, and of which determination the Inspectors are so notified, shall not be used by such seller or such Inspector for any purpose other than exercise of such due diligence
responsibility and shall not be disclosed by the Inspectors unless (A) the disclosure of such Information is necessary to avoid or correct a material misstatement or omission in the Registration Statement, (B) the release of such
Information is ordered pursuant to a subpoena or other order from a court of competent jurisdiction, (C) such Information has been made generally available to the public or (D) the seller of Registrable Shares agrees that it will, upon
learning that disclosure of such Information is sought in a court of competent jurisdiction, give notice to the Company and allow the Company, at the Company’s expense, to undertake appropriate action to prevent disclosure of the Information
deemed confidential); 
 (x) use reasonable commercial efforts to obtain from its independent certified public accountants a
“cold comfort” letter in customary form and covering such matters of the type customarily covered by cold comfort letters; 
 (xi) use reasonable commercial efforts to obtain, from its counsel, an opinion or opinions in customary form (which shall also be addressed to the Investors selling Registrable Shares in such registration); 
 (xii) provide a transfer agent and registrar (which may be the same entity and which may be the Company) for such Registrable Shares;

 (xiii) issue to any underwriter to which any seller of Registrable Shares may sell securities in such offering certificates
evidencing such Registrable Shares; 
 (xiv) use its commercially reasonable efforts to cause all such Registrable Securities
covered by such registration statement to be listed on a national securities exchange or trading system and each securities exchange and trading system (if any) on which similar securities issued by the Company are then listed; 
 (xv) otherwise use reasonable commercial efforts to comply with all applicable rules and regulations of the Commission, and make available
to its securityholders, as soon as reasonably practicable, earnings statements which need not be audited covering a period of 12 months beginning within three months after the effective date of the Registration Statement, which earnings statements
shall satisfy the provisions of Section 11(a) of the Securities Act; and 
 (xvi) use reasonable commercial efforts to
take all other steps necessary to effect the registration of such Registrable Shares contemplated hereby. 
  

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 (b) Each holder of Registrable Shares that sells Registrable Shares pursuant to a registration under this
Agreement agrees that during such time as such seller may be engaged in a distribution of the Registrable Shares, such seller shall comply with Regulation M promulgated under the Exchange Act and pursuant thereto it shall, among other things:
(i) not engage in any stabilization activity in connection with the securities of the Company in contravention of such rules; (ii) distribute the Registrable Shares under the Registration Statement solely in the manner described in the
Registration Statement; and (iii) cease distribution of such Registrable Shares pursuant to such Registration Statement upon receipt of written notice from the Company that the prospectus covering the Registrable Shares contains any untrue
statement of a material fact or omits a material fact required to be stated therein or necessary to make the statements therein not misleading in light of the circumstances then existing. 
  

	2.5	EXPENSES. 

 All expenses incurred by the Company in
complying with Section 2.4, including, without limitation, all registration and filing fees, fees and expenses of complying with securities and blue sky laws, printing expenses, fees and expenses of the Company’s counsel and accountants
and reasonable fees and expenses of the Investors’ Counsel, shall be paid by the Company; provided, however, that all underwriting discounts and selling commissions applicable to the Registrable Shares and all fees and expenses of counsel for
the seller or sellers other than the Investors’ Counsel, shall not be borne by the Company but shall be borne by the seller or sellers thereof, in proportion to the number of Registrable Shares sold by such seller or sellers. 
  

	2.6	INDEMNIFICATION. 

 (a) To the maximum extent permitted by
law, in connection with any registration of any Registrable Shares under the Securities Act pursuant to this Article II, the Company shall indemnify and hold harmless the seller of such Registrable Shares, each underwriter, broker or any other
Person acting on behalf of such seller, each other Person, if any, who controls any of the foregoing Persons within the meaning of the Securities Act and each Representative of any of the foregoing Persons, against any losses, claims, damages or
liabilities, joint or several, to which any of the foregoing Persons may become subject under the Securities Act or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon an
untrue statement or alleged untrue statement of a material fact contained in the Registration Statement under which such Registrable Shares were registered, any preliminary Prospectus or final Prospectus contained therein, any amendment or
supplement thereto or any document incident to registration or qualification of any Registrable Shares, or arise out of or are based upon the omission or alleged omission to state therein a material fact required to be stated therein or necessary to
make the statements therein not misleading or, with respect to any Prospectus, necessary to make the statements therein in light of the circumstances under which they were made not misleading, or any violation by the Company of the Securities Act or
state securities or blue sky laws applicable to the Company and relating to action or inaction required of the Company in connection with such registration or qualification under such state securities or blue sky laws, and the Company shall promptly
reimburse such seller, such underwriter, such broker, such controlling Person or such Representatives for any legal or other expenses incurred by any of them in connection with investigating or defending any such loss, claim, damage, liability or
action; provided, however, that the Company shall not be liable to any such Person to 

  

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the extent that any such loss, claim, damage or liability arises out of or is based upon an untrue statement or alleged untrue statement or omission or
alleged omission made in said Registration Statement, preliminary Prospectus, amendment, supplement or document incident to registration or qualification of any Registrable Shares in reliance upon and in conformity with written information furnished
to the Company through an instrument duly executed by such Person, or a Person duly acting on their behalf, specifically for use in the preparation thereof; provided further, however, that the foregoing indemnity agreement is subject to the
condition that, insofar as it relates to any untrue statement, allegedly untrue statement, omission or alleged omission made in any preliminary Prospectus but eliminated or remedied in the final Prospectus (filed pursuant to Rule 424 of the
Securities Act), such indemnity agreement shall not inure to the benefit of any indemnified party from whom the Person asserting any loss, claim, damage, liability or expense purchased the Registrable Shares which are the subject thereof, if a copy
of such final Prospectus had been timely made available to such Indemnified Person and such final Prospectus was not delivered to such Person with or prior to the written confirmation of the sale of such Registrable Shares to such Person.

 (b) To the maximum extent permitted by law, in connection with any registration of Registrable Shares under the Securities Act pursuant to
this Article II, each seller of Registrable Shares shall indemnify and hold harmless (in the same manner and to the same extent as set forth in the paragraph (a) of this Section 2.6) the Company, each underwriter or broker involved in such
offering, each other seller of Registrable Shares under such Registration Statement, each Person who controls any of the foregoing Persons within the meaning of the Securities Act and any Representative of the foregoing Persons with respect to any
statement or omission from such Registration Statement, any preliminary Prospectus or final Prospectus contained therein, any amendment or supplement thereto or any document incident to registration or qualification of any Registrable Shares, if
such statement or omission was made in reliance upon and in conformity with written information furnished to the Company or such underwriter through an instrument duly executed by such seller or a Person duly acting on their behalf specifically for
use in connection with the preparation of such Registration Statement, preliminary Prospectus, final Prospectus, amendment or supplement; provided, however, that the obligation to indemnify will be several, not joint and several, among the sellers
of Registrable Shares, and the maximum amount of liability in respect of such indemnification shall be in proportion to and limited, in the case of each seller of Registrable Shares, to an amount equal to the proceeds actually received by such
seller from the sale of Registrable Shares effected pursuant to such registration. 
 (c) Promptly after receipt by an indemnified party of
notice of the commencement of any action involving a claim referred to in the preceding paragraphs of this Section 2.6, such indemnified party will, if a claim in respect thereof is made against an indemnifying party, give written notice to the
latter of the commencement of such action (provided, however, that an indemnified party’s failure to give such notice in a timely manner shall only relieve the indemnification obligations of an indemnifying party to the extent such indemnifying
party is prejudiced by such failure). In case any such action is brought against an indemnified party, the indemnifying party will be entitled to participate in and to assume the defense thereof, jointly with any other indemnifying party similarly
notified to the extent that it may wish, with counsel reasonably satisfactory to such indemnified party, and after notice from the indemnifying party to such indemnified party of its election so to assume the defense thereof, the indemnifying party

  

 10 

 
shall not be responsible for any legal or other expenses subsequently incurred by the indemnified party in connection with the defense thereof; provided,
however, that if any indemnified party shall have reasonably concluded that there may be one or more legal or equitable defenses available to such indemnified party which are in addition to or conflict with those available to the indemnifying party,
or that such claim or litigation involves or could have an effect upon matters beyond the scope of the indemnity agreement provided in this Section 2.6, the indemnifying party shall not have the right to assume the defense of such action on
behalf of such indemnified party and such indemnifying party shall reimburse such indemnified party and any Person controlling such indemnified party for that portion of the reasonable fees and expenses of any counsel (plus appropriate special and
local counsel) retained by the indemnified party which are reasonably related to the matters covered by the indemnity agreement provided in this Section 2.6. Notwithstanding the foregoing, the indemnity agreement set forth in
Section 2.6(a) shall not apply to amounts paid in settlement if such settlement is effected without the written consent of the indemnifying party (which consent shall not be unreasonably withheld). 
 (d) If the indemnification provided for in this Section 2.6 is held by a court of competent jurisdiction to be unavailable to an indemnified party
with respect to any loss, claim, damage or liability referred to herein, then the indemnifying party, in lieu of indemnifying such indemnified party hereunder, shall contribute to the amounts paid or payable by such indemnified party as a result of
such loss, claim, damage or liability in such proportion as is appropriate to reflect the relative fault of the indemnifying party on the one hand and of the indemnified party on the other hand in connection with the statements or omissions which
resulted in such loss, claim, damage or liability as well as any other relevant equitable considerations; provided, however, that the maximum amount of liability in respect of such contribution shall be limited, in the case of each seller of
Registrable Shares, to an amount equal to the proceeds actually received by such seller from the sale of Registrable Shares effected pursuant to such registration. The relative fault of the indemnifying party and of the indemnified party shall be
determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission to state a material fact relates to information supplied by the indemnifying party or by the indemnified party and the
parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. 
 (e) The
indemnification and contribution provided for under this Article II will remain in full force and effect regardless of any investigation made by or on behalf of the indemnified party and will survive the transfer of securities. 
 (f) The indemnification required by this Section 2.6 will be made by periodic payments during the course of the investigation or defense, as and
when bills are received or expenses incurred, subject to prompt refund in the event any such payments are determined not to have been due and owing hereunder. 
  

	2.7	UNDERWRITING AGREEMENT. 

 (a) Notwithstanding the
provisions of Sections 2.4 and 2.6, to the extent that the sellers of Registrable Shares in a proposed registration shall enter into an underwriting or similar agreement, which agreement contains provisions covering one or more issues addressed in
such 

  

 11 

 
sections of this Article II, the provisions contained in such sections of this Article II addressing such issue or issues shall be of no force or effect with
respect to such registration, but this provision shall not apply to the Company if the Company is not a party to the underwriting or similar agreement. 
 (b) If any registration pursuant to Section 2.1 or 2.3 is requested to be an underwritten offering, the Company shall negotiate in good faith to enter into a reasonable and customary underwriting agreement with
the underwriters thereof. The Company shall be entitled to receive indemnities from lead institutions, underwriters, selling brokers, dealer managers and similar securities industry professionals participating in the distribution, to the same extent
as provided above with respect to information so furnished in writing by such Persons specifically for inclusion in any Prospectus or Registration Statement and to the extent customary given their role in such distribution. 
 (c) No holder of Registrable Shares may participate in any registration hereunder that is underwritten unless such holder agrees (i) to sell such
holder’s Registrable Shares proposed to be included therein on the basis provided in any underwriting arrangements acceptable to the Company and the Investors holding a majority of the Registrable Shares to be included in such registration and
(ii) as expeditiously as possible, notify the Company of the occurrence of any event concerning such holder as a result of which the Prospectus relating to such registration contains an untrue statement of a material fact or omits to state a
material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading. 
  

	2.8	SUSPENSION. 

 Anything contained in this Article II to the
contrary notwithstanding, the Company may (not more than once with respect to each registration), by notice in writing to each holder of Registrable Shares to which a Prospectus relates, require such holder to suspend, for up to 90 days (the
“Suspension Period”), the use of any Prospectus included in a Registration Statement filed under Section 2.1, 2.2 or 2.3 if a Material Sale exists that would require an amendment to such Registration Statement or supplement to
such Prospectus (including any such amendment or supplement made through incorporation by reference to a report filed under Section 13 of the Exchange Act). The period during which such Prospectus must remain effective shall be extended by a
period equal to the Suspension Period. The Company may (but shall not be obligated to) withdraw the effectiveness of any Registration Statement subject to this provision. 
  

	2.9	INFORMATION BY HOLDER. 

 Each holder of Registrable Shares
to be included in any registration shall furnish to the Company and the managing underwriter such written information regarding such holder and the distribution proposed by such holder as the Company or the managing underwriter may reasonably
request in writing and as shall be reasonably required in connection with any registration, qualification or compliance referred to in this Article II. 
  

 12 

	2.10	EXCHANGE ACT COMPLIANCE. 

 The Company shall comply with
all of the reporting requirements of the Exchange Act (whether or not it shall be required to do so) and shall comply with all other public information reporting requirements of the Commission, which are conditions to the availability of Rule 144
for the sale of the Common Stock. The Company shall cooperate with each holder of Registrable Shares in supplying such information as may be reasonably necessary for such holder to complete and file any information reporting forms presently or
hereafter required by the Commission as a condition to the availability of Rule 144. 
  

	2.11	NO CONFLICT OF RIGHTS. 

 The Company represents and
warrants to the Investors that the registration rights granted to the Investors hereby do not conflict with any other registration rights granted by the Company. The Company shall not, after the date hereof, grant any registration rights which
conflict with or impair, or have any priority over, the registration rights granted hereby, without the prior consent of the Requisite Investors. In any underwritten public offering, the managing underwriter shall be a nationally recognized
investment banking firm selected by the Company, and reasonably acceptable to the Requisite Investors. 
  

	2.12	TRANSFER OF REGISTRATION RIGHTS. 

 The registration rights
provided in this Article II may be Transferred by any Investor to (i) any principal, officer, or retired or principal officer of an Investor, (ii) to an Affiliate of an Investor, or (iii) to any Transferee of at least 100,000 shares
of Common Stock held by such Investor, in each case so long as the Company is, within a reasonable time after such transfer, furnished with written notice of the name and address of such Transferee and the securities with respect to which such
registration rights are being assigned. 
  

	2.13	TERMINATION. 

 This Article II shall terminate and be of no
further force or effect, as to any Investor, upon such time as Rule 144 or another similar exemption under the Securities Act is available for the sale of all such Investor’s Registrable Shares in a single transaction without regard to volume
limitations; provided, however, that Sections 2.5 and 2.6 shall survive the termination of this Article II. 
  

 13 

 ARTICLE III 
 SECURITIES LAW COMPLIANCE; LEGENDS 
  

	3.1	RESTRICTION ON TRANSFER. 

 (a) Except for Transfers that
constitute Public Sales and Transfers to Affiliates, no Investor shall Transfer any Registrable Shares to a Person not already a party to this Agreement, unless and until such Person executes and delivers to the Company a joinder agreement, pursuant
to which such Person will thereupon become a party to, and be bound by and obligated to comply with the terms and provisions of, this Agreement, as an Investor hereunder. No Person who acquires Common Stock in a Public Sale shall be required to
execute a joinder agreement. 
 (b) In addition to any other restrictions on the Transfer of any securities contained in this Agreement, the
Investors shall not Transfer any Registrable Shares except in compliance with the conditions specified in this Article III. 
  

	3.2	RESTRICTIVE LEGENDS. 

 (a) Each certificate evidencing
Registrable Shares and each certificate issued in exchange for or upon the Transfer of any Registrable Shares (if such shares remain Registrable Shares as defined herein after such Transfer) shall be stamped or otherwise imprinted with a legend in
substantially the following form: 
 “THE SECURITIES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO A REGISTRATION RIGHTS AGREEMENT
DATED AS OF SEPTEMBER 22, 2008, AMONG THE ISSUER OF SUCH SECURITIES (THE “COMPANY”) AND CERTAIN OF THE COMPANY’S STOCKHOLDERS, AS THE SAME MAY BE AMENDED FROM TIME TO TIME. THE TERMS OF SUCH REGISTRATION RIGHTS AGREEMENT
INCLUDE, AMONG OTHER THINGS, RESTRICTIONS ON TRANSFERS. A COPY OF SUCH REGISTRATION RIGHTS AGREEMENT WILL BE FURNISHED WITHOUT CHARGE BY THE COMPANY TO THE HOLDER HEREOF UPON WRITTEN REQUEST.” 
 (b) The Company shall imprint such legends on certificates evidencing shares outstanding prior to the date hereof. The legend set forth above shall be
removed from the certificates evidencing any shares that cease to be Registrable Shares in accordance with the terms of this Agreement. 
 ARTICLE IV 
 AMENDMENT AND WAIVERS 
  

	4.1	AMENDMENT. 

 Except as expressly set forth herein, the
provisions of this Agreement may only be amended or waived with the prior written consent of (i) the Company and (ii) the Requisite Investors; provided, however, that (A) any such amendment, modification, or waiver that would
adversely affect the rights hereunder of any Investor, in its capacity as an Investor, without similarly affecting the rights hereunder of all Investors, shall not be effective as to such Investor 

  

 14 

 
without such Investor’s prior written consent (B) Schedule I to this Agreement shall be deemed to be automatically amended from time to time to
reflect Transfers of Common Stock made in accordance with the terms of this Agreement, without requiring the consent of any party, and the Company will, from time to time, distribute to the Investors a revised Schedule I to reflect any such changes.

  

	4.2	WAIVERS; EXTENSIONS. 

 No course of dealing between the
Company and the Investors (or any of them) or any delay in exercising any rights hereunder will operate as a waiver of any rights of any party to this Agreement. The failure of any party to enforce any of the provisions of this Agreement will in no
way be construed as a waiver of such provisions and will not affect the right of such party thereafter to enforce each and every provision of this Agreement in accordance with its terms. 
 ARTICLE V 
 TERMINATION 
 The provisions of this Agreement, except as otherwise expressly provided herein, shall terminate upon the approval of such termination by (i) the
Company and (ii) the Requisite Investors. Anything contained herein to the contrary notwithstanding, as to any particular Investor, this Agreement shall no longer be binding or of further force or effect as to such Investor, except as otherwise
expressly provided herein, as of the date such Investor has Transferred all of such Investor’s interest in the Company’s securities and the Transferees of such securities have, if required by Section 3.1(a) hereof, executed joinder
agreements. 
 ARTICLE VI 
 MISCELLANEOUS 
  

	6.1	SEVERABILITY. 

 It is the desire and intent of the parties
that the provisions of this Agreement be enforced to the fullest extent permissible under the law and public policies applied in each jurisdiction in which enforcement is sought. Accordingly, in the event that any provision of this Agreement would
be held in any jurisdiction to be invalid, prohibited or unenforceable for any reason, such provision, as to such jurisdiction, shall be ineffective, without invalidating the remaining provisions of this Agreement or affecting the validity or
enforceability of this Agreement or such provision in any other jurisdiction. Notwithstanding the foregoing, if such provision could be more narrowly drawn so as not be invalid, prohibited or unenforceable in such jurisdiction, it shall, as to such
jurisdiction, be so narrowly drawn, without invalidating the remaining provisions of this Agreement or affecting the validity or enforceability of such provision in any other jurisdiction. 
  

	6.2	ENTIRE AGREEMENT. 

 This Agreement and the other agreements
referred to herein and to be executed and delivered in connection herewith embody the entire agreement and understanding among the parties hereto with respect to the subject matter hereof and thereof and supersede and preempt 

  

 15 

 
any and all prior and contemporaneous understandings, agreements, arrangements or representations by or among the parties, written or oral, which may relate
to the subject matter hereof or thereof in any way. Other than this Agreement, the other Documents and the other agreements referred to herein and therein to be executed and delivered in connection herewith and therewith, there are no other
agreements continuing in effect relating to the subject matter hereof. 
  

	6.3	INDEPENDENCE OF AGREEMENTS, COVENANTS, REPRESENTATIONS AND WARRANTIES. 

 All agreements and covenants hereunder shall be given independent effect so that if a certain action or condition constitutes a default under a certain agreement or covenant, the fact that such action or condition is
permitted by another agreement or covenant shall not affect the occurrence of such default, unless expressly permitted under an exception to such initial covenant. In addition, all representations and warranties hereunder shall be given independent
effect so that if a particular representation or warranty proves to be incorrect or is breached, the fact that another representation or warranty concerning the same or similar subject matter is correct or is not breached will not affect the
incorrectness of or a breach of a representation and warranty hereunder. The exhibits and schedules attached hereto are hereby made part of this Agreement in all respects. 
  

	6.4	SUCCESSORS AND ASSIGNS. 

 Except as otherwise provided
herein, this Agreement will bind and inure to the benefit of and be enforceable by the Company and its successors and assigns and the Investors and any subsequent holders of Registrable Shares and the respective successors and assigns of each of
them, so long as they hold Registrable Shares. This Agreement is not intended to create any third party beneficiaries. 
  

	6.5	COUNTERPARTS; FACSIMILE SIGNATURES. 

 This Agreement may be
executed in any number of counterparts, and each such counterpart hereof shall be deemed to be an original instrument, but all such counterparts together shall constitute but one agreement. Facsimile counterpart signatures to this Agreement shall be
acceptable and binding. 
  

	6.6	REMEDIES. 

 (a) Each Investor shall have all rights and
remedies reserved for such Investor pursuant to this Agreement and all of the rights that such holder has under any law or equity. Any Person having any rights under any provision of this Agreement will be entitled to enforce such rights
specifically, to recover damages by reason of any breach of any provision of this Agreement and to exercise all other rights granted by law or equity. 
 (b) The parties hereto agree that if any parties seek to resolve any dispute arising under this Agreement pursuant to a legal proceeding, the prevailing parties to such proceeding shall be entitled to receive
reasonable fees and expenses (including reasonable attorneys’ fees and expenses) incurred in connection with such proceedings. 
  

 16 

 (c) It is acknowledged that it will be impossible to measure in money the damages that would be suffered
by any party hereto if any Person also party hereto fails to comply with any of the obligations imposed on it upon them in this Agreement or in the Certificate or Bylaws and that in the event of any such failure, the aggrieved party will be
irreparably damaged and will not have an adequate remedy at law. Any such aggrieved party shall, therefore, be entitled to equitable relief, including specific performance, to enforce such obligations, and if any action should be brought in equity
to enforce any of the provisions of this Agreement, none of the parties hereto shall raise the defense that there is an adequate remedy at law. 
  

	6.7	NOTICES. 

 All notices or other communications which are
required or otherwise delivered hereunder shall be deemed to be sufficient and duly given if contained in a written instrument (a) personally delivered or sent by telecopier, (b) sent by nationally-recognized overnight courier guaranteeing
next Business Day delivery or (c) sent by first class registered or certified mail, postage prepaid, return receipt requested, addressed as follows: 
 (i) if to the Company, to: 
  Platinum Research Organization, Inc. 
  2777 Stemmons Freeway, Suite 1440 
  Dallas, Texas 75207 
  Telephone 214-271-9503 
  Fax 214-271-9504 
  Attention:
Chief Executive Officer 
 (ii) if to an Investor, to him, her or it at the address set forth on Schedule I attached hereto;
or to such other address as the party to whom notice is to be given may have furnished to each other party in writing in accordance herewith. Any such notice or communication shall be deemed to have been received (i) when delivered, if
personally delivered, (ii) when sent, if sent by telecopy on a Business Day (or, if not sent on a Business Day, on the next Business Day after the date sent by telecopy), (iii) on the first Business Day after dispatch, if sent by
nationally recognized, overnight courier guaranteeing next Business Day delivery and (iv) on the fifth Business Day following the date on which the piece of mail containing such communication is posted, if sent by mail. 
  

	6.8	GOVERNING LAW; WAIVER OF JURY TRIAL. 

 (a) All questions
concerning the construction, interpretation and validity of this Agreement shall be governed by and construed and enforced in accordance with the domestic laws of the State of Washington, without giving effect to any choice or conflict of law
provision or rule (whether in the State of Washington or any other jurisdiction) that would cause the application of the laws of any jurisdiction other than the State of Washington. In furtherance of the foregoing, the internal law of the State of
Washington will control the interpretation and 

  

 17 

 
construction of this Agreement, even if under such jurisdiction’s choice of law or conflict of law analysis, the substantive law of some other
jurisdiction would ordinarily apply. Notwithstanding the foregoing provisions of this Section 6.10, those provisions of this Agreement that relate to the internal governance of the Company and are required by Delaware corporate law to be
governed by such, shall be governed by and construed and enforced in accordance with the internal laws of the State of Delaware. 
 (b)
BECAUSE DISPUTES ARISING IN CONNECTION WITH COMPLEX FINANCIAL TRANSACTIONS ARE MOST QUICKLY AND ECONOMICALLY RESOLVED BY AN EXPERIENCED AND EXPERT PERSON AND THE PARTIES WISH APPLICABLE LAWS TO APPLY (RATHER THAN ARBITRATION RULES), THE PARTIES
DESIRE THAT THEIR DISPUTES BE RESOLVED BY A JUDGE APPLYING SUCH APPLICABLE LAWS. THEREFORE, TO ACHIEVE THE BEST COMBINATION OF THE BENEFITS OF THE JUDICIAL SYSTEM AND OF ARBITRATION, THE PARTIES HERETO WAIVE ALL RIGHT TO TRIAL BY JURY IN ANY ACTION,
SUIT OR PROCEEDING BROUGHT TO ENFORCE OR DEFEND ANY RIGHTS OR REMEDIES UNDER THIS AGREEMENT OR ANY DOCUMENTS RELATED HERETO. 
  

	6.9	FURTHER ASSURANCES. 

 Each party hereto 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 any other party hereto reasonably may request in order to carry out the
provisions of this Agreement and the consummation of the transactions contemplated hereby. 
  

	6.10	CONFLICTING AGREEMENTS. 

 No Investor shall enter into any
stockholder agreements or arrangements of any kind with any Person with respect to any securities on terms inconsistent with the provisions of this Agreement (whether or not such agreements or arrangements are with other Investors or with Persons
that are not parties to this Agreement), including agreements or arrangements with respect to the acquisition or disposition of securities in a manner which is inconsistent with this Agreement. 
  

	6.11	NO THIRD PARTY RELIANCE. 

 Anything contained herein to the
contrary notwithstanding, the representations and warranties of the Company contained in this Agreement (a) are being given by the Company as an inducement to the Investors to enter into this Agreement and the other Documents (and the Company
acknowledges that the Investors have expressly relied thereon) and (b) are solely for the benefit of the Investors. Accordingly, no third party (including, without limitation, any holder of capital stock of the Company) or anyone acting on
behalf of any thereof other than the Investors, shall be a third party or other beneficiary of such representations and warranties and no such third party shall have any rights of contribution against the Investors or the Company with respect to
such representations or warranties or any matter subject to or resulting in indemnification under this Agreement or otherwise. 
 [Signature page follows] 
  

 18 

 IN WITNESS WHEREOF, the undersigned have duly executed this Investor Rights Agreement as of the date
first written above. 
  

			
	COMPANY:
	
	PLATINUM RESEARCH ORGANIZATION, INC.
		
	By:	 	/s/ John T. “Cork” Jaeger, Jr.
	Name:	 	John T. “Cork” Jaeger, Jr.
	Title:	 	Chief Executive Officer
	
	SEATTLE CITY EMPLOYEES’ RETIREMENT SYSTEM
		
	By:	 	/s/ Cecelia Carter
	Name:	 	Cecelia Carter
	Title:	 	Executive Director

 [SIGNATURE PAGE TO REGISTRATION RIGHTS AGREEMENT] 

 SCHEDULE I 
 INVESTORS 
 NAME AND ADDRESS 
 Seattle City Employees’ Retirement System 
 720 Third Avenue, Suite 1000 (10th Floor) 
 Seattle, WA 98104-1829 
 Attention: Cecelia M.
Carter, Executive Director 
 with a copy to: 
 Summit Law Group, PLLC 
 315 5th Ave. S., Suite 1000 
 Seattle, WA 98104-2682

 Phone: (206) 676-7106 
 Fax: (206) 676-7107 
 Attention: Charles P. Carter, Esq.Asset Purchase Agreement by and among WebMessenger, Inc. and CallWave, Inc.

 Exhibit 10.8 
  
  
  
 ASSET PURCHASE AGREEMENT 
 by and among

 WEBMESSENGER, INC. 
 a
California corporation 
 (“Seller”) 
 and 
 CALLWAVE, INC. 
 a Delaware corporation 
 (“Purchaser”) 
  
  
  
 August 4, 2008 
  
  
  

 ASSET PURCHASE AGREEMENT 
 THIS ASSET PURCHASE AGREEMENT (this “Agreement”) is made and entered into, effective as of August 4, 2008 (the “Effective
Date”), by and between CALLWAVE, INC., a Delaware corporation (“Purchaser”); and WEBMESSENGER, INC., a California corporation (“Seller” and, together with Purchaser and Seller, the
“Parties” and individually, a “Party”), with reference to the following facts: 
 RECITALS:

 A. Seller is engaged in the business of delivering mobile messaging software-based products and services, which provide mobile real-time
presence, VoIP and collaboration products for instant message connectivity, interoperability, mobility and security, and other features (the “Business”). 
 B. Purchaser is a provider of value-added messaging and communications services and solutions to individuals and businesses around the globe. 
 C. Seller is the owner of certain “Transferred Assets” (as defined below). The parties have agreed to execute this Agreement in order to
memorialize the terms and conditions on which Purchaser shall purchase the Transferred Assets from Seller. 
 AGREEMENTS: 

NOW, THEREFORE, in consideration of and subject to each of the covenants, representations, warranties, terms and conditions hereinafter set forth, the
receipt and sufficiency of which are hereby acknowledged, the Parties hereby agree as follows: 
 ARTICLE 1. 
 DEFINITIONS 
 For purposes of this Agreement, the
term: 
 “Agreement” shall have the meaning set forth in the preamble. 
 “Apptix WM” shall mean Apptix/Webmessenger, Inc., a Delaware corporation. 
 “Apptix WM Bulgaria” shall mean Apptix WebMessenger Bulgaria EOOD, a limited liability company organized under the laws of Bulgaria and
registered with the Department of Companies in the City of Sofia. 
 “Assignment Agreement” means the Assignment and
Assumption of Contracts in the form attached hereto as Exhibit D. 
 “Assumed Liabilities” shall have the meaning set
forth in Section 3.1. 
 “Babadzhov” shall mean Vladimir B. Babadzhov. 
 “Best Efforts” shall mean the efforts that a prudent Person desirous of achieving a result would use in similar circumstances to achieve
that result as expeditiously as possible, provided, however, that a Person required to use Best Efforts under this Agreement will not be thereby required to take actions that would result in a material adverse change in the benefits to such Person
of this Agreement and the transactions contemplated hereby or to dispose of or make any change to its business, expend any material funds or incur any other material burden. 
  

 1 

 “Bill of Sale” shall mean the Bill of Sale attached hereto as Exhibit A.

 “Business Day” shall mean any day excluding Saturday, Sunday and any day on which banking institutions located in Santa
Barbara, California are authorized or required by applicable Law or other governmental action to be closed. 
 “Confidential
Information” shall have the meaning set forth in the NDA. 
 “Consent” shall have the meaning set forth in
Section 2.3(a). 
 “Contract” shall mean any material agreement, contract, commitment, indemnity, lease
or license, promise or other undertaking, whether written or oral and whether express or implied, that is binding upon a party hereto. 
 “Closing” shall have the meaning set forth in Section 6.1. 
 “Closing Date” shall
have the meaning set forth in Section 6.1. 
 “Closing Payment” shall have the meaning set forth in Section
5.2. 
 “Damages” shall have the meaning set forth in Section 10.1. 
 “Deed of Assignment and Transfer” shall mean that certain Deed of Assignment and Transfer in the form attached hereto as Exhibit
G. 
 “Escrow Agent” shall mean The Bank of New York Mellon Corporation, a Delaware corporation. 
 “Escrow Agreement” shall mean the Escrow Agreement attached hereto as Exhibit B. 
 “Excluded Assets” shall have the meaning set forth in Section 2.2. 
 “Excluded Liabilities” shall have the meaning set forth in Section 3.2. 
 “Governmental Authority” shall mean any domestic, foreign or local government, administrative agency, commission, department or other
governmental, regulatory or self-regulatory authority. 
 “Governmental Authorization” shall mean any license, permit,
approval, registration or other authorization granted, given or made available by or on behalf of any Governmental Authority. 
 “Indemnified Parties” shall have the meaning set forth in Section 10.1. 
 “Indemnity Escrow
Amount” shall have the meaning set forth in Section 5.2(c). 
 “Intellectual Property” shall have the
meaning set forth in Section 7.13(a). 
 “Intellectual Property Rights” shall mean all intellectual property,
proprietary, or similar rights, and embodiments thereof, including, without limitation: (i) all inventions, trade secrets, discoveries, the Software and other works of authorship (and all improvements and derivative works thereof, relating
thereto or emanating therefrom), including any and all U.S., international, and foreign utility or design patents including, without limit, any applications or rights of priority under any statute or treaty therefor, and any and all provisionals,
divisions, renewals, extensions, reissues, continuations, and continuations-in-part thereof; (ii) copyright, copyright registrations, and applications therefor, and all other rights 

  

 2 

 
corresponding thereto throughout the world; (iii) any and all trademarks, trade names, and applications therefor throughout the world; and (iv) any
and all similar or equivalent rights to the foregoing anywhere in the world. 
 “Knowledge” shall mean (a) the actual
awareness or understanding of a fact or matter, or (b) knowledge of a fact or matter which a prudent individual could be expected to discover or otherwise become aware of in the course of conducting a reasonably comprehensive investigation
concerning such fact or matter. 
 “Law” shall mean any law, regulation, statute, code, decree, order, injunction, judgment,
ruling, or arbitral award of any Governmental Authority, court or arbitrator. 
 “Lien” shall mean any mortgage, easement,
pledge, hypothecation, license, option, encumbrance, lien, priority or other security interest or similar restriction. 
 “NDA” shall have the meaning set forth in Section 12.1. 
 “Non-Competition
Agreement” shall mean the Non-Competition Agreements between Purchaser and Seller in the form of Exhibit C-1 attached hereto, between Babadzhov and Purchaser in the form of Exhibit C-2 attached hereto, and between each
Principal and Purchaser in the form of Exhibit C-3 attached hereto. 
 “Party” and “Parties” shall
have the meanings set forth in the preamble. 
 “Patent Assignment” means an Assignment of Patents in the form attached
hereto as Exhibit E. 
 “Person” means any natural Person, and any sole proprietorship, corporation, partnership of
any kind having a separate legal status, limited liability company, business trust, unincorporated organization or association, mutual company, joint stock company or joint venture, estate, trust, union or employee organization or any national,
regional or local body of state power, any ministry or department thereof, and any person exercising executive, legislative, judicial, regulatory or administrative functions of or pertaining to government (including any independent regulator) or any
other governmental entity, instrumentality, agency, authority, court, corporation, committee or commission under the direct or indirect control of a government. 
 “Post-Closing Period” shall mean any period beginning on the Closing Date. 
 “Principal” shall mean each of Joe G. Naylor and George Emilov. 
 “Pre-Closing Period” shall mean
all periods prior to the Closing Date. 
 “Proceeding” shall mean any action, arbitration, audit, hearing, investigation,
litigation or suit, whether civil, criminal, administrative, judicial or investigative, whether formal or informal, whether public or private. 
 “Purchase Price” shall have the meaning set forth in Section 5.1. 
 “Purchaser”
shall have the meaning set forth in the preamble. 
 “Seller” shall have the meaning set forth in the preamble. 

 

 3 

 “Seller’s Disclosure Schedule” shall mean the disclosure schedule required to be
provided or delivered by Seller pursuant to Article 7 of this Agreement, a copy of which is attached hereto as Schedule 7. 
 “Seller Financial Statements” has the meaning set forth in Section 7.8. 
 “Software”
shall have the meaning set forth in Section 2.1(a). 
 “Source Code” shall mean shall mean the version of a computer program
that is in a programming language that is understandable by humans and used to generate the Software and shall include any existing programmers’ notes and existing similar documentation, if any. 
 “Tangible Personal Property” shall have the meaning set forth in Section 2.1(b). 
 “Trademark Assignment” means a Trademark Assignment in the form attached hereto as Exhibit F. 
 “Transferred Assets” shall have the meaning set forth in Section 2.1. 
 “Transferred Contracts” shall have the meaning set forth in Section 2.1(d). 
 “U.S. GAAP” shall mean the generally accepted accounting principles for financial reporting in the United States. 
 ARTICLE 2. 
 PURCHASE AND SALE OF
ASSETS 
 2.1 Assets to be Sold. At the Closing, subject to the terms and conditions set forth in this Agreement, Seller shall
sell, convey and transfer to Purchaser, and Purchaser shall purchase and acquire from Seller, free and clear of any Liens, all of Seller’s right, title and interest in and to all of the following (collectively, the “Transferred
Assets”): 
 (a) All Intellectual Property Rights of Seller in and to that certain software product and service sometimes
identified as “WebMessenger” that is used in the Business, including but not limited to each and every of the following items pertaining thereto (collectively, the “Software”): 
 (i) All Source Code for the Software; 
 (ii)
All binaries with respect to the Software; 
 (iii) All libraries with respect to the Software; 
 (iv) All XML, HTML, and executables with respect to the Software; 
 (v) All applications constructed with the Source Code for the Software; 
 (vi) All documentation describing
all or any portion of the Software or the Source Code therefor; and 
 (vii) All rights in and to all copyrights with respect to the Software.

  

 4 

 (b) All equipment, computer hardware, supplies, materials and other items of tangible personal
property owned or leased by Seller relating to or used in the Business, including those items included in Schedule 2.1(b) (the “Tangible Personal Property”); 
 (c) All contract rights of Seller with users of Seller’s Software (the “Customer Contracts”); 
 (d) All contract rights of Seller under supply and distribution contracts to which Seller is a party (together with the Customer Contracts, the
“Transferred Contracts”); 
 (e) All rights in and to the trademark “WebMessenger” and each other trademark
used by Seller to market, promote, distribute or sell the Software; 
 (f) All of Seller’s accounts receivable, other accounts
receivable, work in progress, pending orders, notes receivable and other rights to payment from customers of the Business, including those items included in Schedule 2.1(c) (the “Transferred Receivables”); 
 (g) All Governmental Authorizations and all pending applications therefor or renewals thereof relating to the foregoing, in each case to the extent
transferable to Purchaser; 
 (h) All claims of Seller against third parties arising with respect to any of the foregoing, including
contingent claims; 
 (i) All of the assets of Seller previously owned by Apptix WM that were transferred to Seller by reason of the
merger between Seller and Apptix WM, including all share capital of Apptix WM Bulgaria; and 
 (j) The goodwill associated with any of
the foregoing. 
 2.2 Excluded Assets. Notwithstanding anything to the contrary contained in Section 2.1, above, or
elsewhere in this Agreement, Seller will retain its right, title and interest in and to all of Seller’s cash and all books and records needed for legal purposes (such other assets, the “Excluded Assets”), and such Excluded
Assets shall not be transferred to Purchaser and shall be excluded from the Transferred Assets but Seller shall provide Purchaser with copies of all retained books and records that are necessary or useful for Purchaser to carry on the business of
Seller. 
 2.3 Consents 
 (a) If there are any orders, permits, consents, approvals or other authorizations (“Consents”) set forth in Section 7.4 of the Seller’s Disclosure Schedule that have not yet been obtained (or otherwise are
not in full force and effect) as of the Closing, in the case of each Transferred Asset as to which such Consents were not obtained (or otherwise not in full force and effect) (the “Restricted Assets”), Purchaser may waive the
closing conditions as to any such Consent and elect to have Seller continue its efforts to obtain the Consents. 
 (b) If Purchaser
elects to have Seller continue its efforts to obtain any Consents and the Closing occurs, notwithstanding Section 2.1 and Section 3.1 hereof, neither this Agreement nor the Assignment Agreement nor any other document
related to the consummation of the transactions contemplated by this Agreement shall constitute a sale, assignment, assumption, transfer, conveyance or delivery or an attempted sale, assignment, assumption, transfer, conveyance or delivery of the
Restricted Assets, and following the Closing, the parties shall use Best Efforts, and cooperate with each other, to 

  

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obtain the Consent relating to each Restricted Asset as quickly as practicable. Pending the obtaining of such Consents relating to any Restricted Asset, the
parties shall cooperate with each other in any reasonable and lawful arrangements designed to provide to Purchaser the benefits of use of the Restricted Asset for its term (or any right or benefit arising thereunder, including the enforcement for
the benefit of Purchaser of any and all rights of Seller against a third party thereunder) and designed to have the expenses and services related thereto to be performed by Purchaser. Once a Consent for the sale, assignment, assumption, transfer,
conveyance and delivery of a Restricted Asset is obtained, Seller shall promptly assign, transfer, convey and deliver such Restricted Asset to Purchaser, and Purchaser shall assume the obligations under such Restricted Asset assigned to Purchaser
from and after the date of assignment to Purchaser pursuant to a special-purpose Assignment Agreement substantially similar in terms to those of the Assignment Agreement (which special-purpose agreement the parties shall prepare, execute and deliver
in good faith at the time of such transfer, all at no additional cost to Purchaser). 
 ARTICLE 3. 
 LIMITED ASSUMPTION OF LIABILITIES 
 Notwithstanding anything to the contrary contained in this Agreement or any document attached hereto: 
 3.1 Assumed
Liabilities. From and after the Closing, Purchaser will assume and be liable for, and will pay, perform and discharge as they become due, (a) all liabilities and obligations arising after the Closing under the Customer Contracts;
(b) any sales tax due related to this Agreement (other than those arising out of or relating to any breaches thereof that occurred prior to the Closing); and (c) any accrued vacation or sick time not yet payable that are owed to employees
of Seller that are hired by Purchaser as of the Closing (collectively, the “Assumed Liabilities”). 
 3.2 Retained
Liabilities. Except as set forth in Section 3.1, above, Seller shall retain, and Purchaser is not assuming hereunder, any of the liabilities of Seller arising prior to the Closing Date with respect to the Transferred Assets or
Seller’s Business (the “Excluded Liabilities”). 
 ARTICLE 4. 
 ASSIGNMENT AND ASSUMPTION 
 4.1
Assignment and Assumption. Effective upon the Closing, Seller agrees to assign, sell, transfer and set over to Purchaser (a) all of Seller’s right, title, benefit, privileges and interest in and to all of the Transferred
Assets (including but not limited to all contracts between Seller and users of Seller’s Software), and (b) all of Seller’s burdens, obligations and liabilities in connection with, each of the Assumed Liabilities. Purchaser agrees to
accept upon the Closing the foregoing assignment and agrees to observe and perform all of the duties, obligations, terms, provisions and covenants, and to pay and discharge all of the liabilities of Seller to be observed, performed, paid or
discharged from and after the Closing, in connection with the Assumed Liabilities. Purchaser will assume no Excluded Liabilities, and the parties hereto agree that all such “Excluded Liabilities” shall remain the sole responsibility of
Seller. 
 ARTICLE 5. 
 PURCHASE PRICE 
 5.1 Purchase Price. In consideration of the purchase of the Transferred Assets, Purchaser
agrees to (i) assume the Assumed Liabilities, and (ii) pay to Seller an amount equal to Nine Million Dollars ($9,000,000) (the “Purchase Price”), subject to adjustment and offset as set forth in Section 5.2(b)
and in ARTICLE 10, below. 
  

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 5.2 Purchase Price Payment. At the Closing, Purchaser shall: 
 (a) Closing Payment. Pay to Seller in cash on the Closing Date the sum of Seven Million Two Hundred Thousand Dollars ($7,200,000)
(the “Closing Payment”). The Closing Payment shall be made by wire transfer of immediately available funds to the account designated by Seller in a written notice delivered to Purchaser at least one (1) Business Day prior to
such date for payment. 
 (b) Earn-out Amount. Deposit with Escrow Agent an amount of cash equal to Four Hundred Fifty
Thousand Dollars ($450,000) (the “Earn-out Amount”), to be held by the Escrow Agent in accordance with the Escrow Agreement and released to Seller or to Purchaser, as applicable in accordance with this Section 5.2(b).

 (i) Such Earn-out Amount shall be payable to Seller, within thirty (30) days after December 31, 2008, in an amount equal
to the product of (x) $450,000, multiplied times (y) a fraction (but in all events not greater than one (1)), the numerator of which is the amount of Purchaser’s Booked Revenues during the Measuring Period, and the denominator
of which is Two Million Dollars ($2,000,000). Any portion of such Earn-out Amount that does not become payable to Seller pursuant to the preceding sentence shall be paid to Purchaser concurrently with the release of any portion of the Earn-out
Amount to Seller. Any interest earned on the Earn-out Amount shall be paid to Seller and Purchaser in the same proportion in which the Earn-out Amount is paid to the Parties. 
 (ii) For purposes of this Section 5.2, the term: 
 (A) “Booked Revenues” means amounts that customers of Purchaser are obligated to pay to Purchaser for the purchase or license of Purchaser’s “Covered Products” (as defined below)
pursuant to signed binding definitive written contracts signed by Purchaser and its customers, and binding purchase or sales orders submitted by Purchaser’s customers and accepted by Purchaser, during the “Measuring Period” and in
accordance with Purchaser’s internal controls for acceptance and approval of contracts, purchaser orders and sales orders. Notwithstanding the foregoing, the term “Booked Revenues” shall not include any revenues earned from any
contracts or purchase or sales orders, the substantially final terms of which been agreed upon by Purchaser and its customers prior to the commencement of the Measuring Period. 
 (B) “Covered Products” means products and services sold or licensed by Purchaser, other than its “Internet Answering Machine”
product. 
 (C) “Measuring Period” shall mean the period from August 4, 2008, through December 31, 2008,
inclusive. 
 (iii) No portion of the Earn-out Amount shall be subject to any indemnity claims asserted by Purchaser pursuant to this
Agreement. 
 (c) Indemnity Escrow Amount. Deposit with Escrow Agent an amount of cash equal to One Million Three Hundred
Fifty Thousand Dollars ($1,350,000) (the “Indemnity Escrow Amount”), to be held by the Escrow Agent in accordance with the Escrow Agreement to secure the performance of Seller’s obligations under this Agreement, including but
not limited to indemnification obligations which are notified by Purchaser to Seller within one year from Closing Date. Subject thereto, the balance of the Indemnity Escrow Amount will be released from the escrow upon the expiration of one
(1) year from the Closing Date. 
  

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 (d) All amounts to be deposited with Escrow Agent pursuant to this Section 5.2 shall be made by
wire transfer and confirmed as being received by the Escrow Agent to Seller and Seller’s counsel by e-mail and at the e-mail addresses on the signature page of this Agreement. 
 ARTICLE 6. 
 CLOSING 
 6.1 Time and Place of Closing. The consummation of the transactions contemplated by this Agreement (the “Closing”) shall take place
at 10:00 a.m., Pacific Time, at the offices of Reicker, Pfau, Pyle & McRoy LLP, 1421 State Street, Suite B, Santa Barbara, California 93101 simultaneously with execution and delivery of this Agreement or on such other date, or at such other
place, as shall be mutually agreed upon by the Parties. The date on which the Closing shall occur in accordance with the preceding sentence is referred to in this Agreement as the “Closing Date.” 
 6.2 Purchaser’s Closing Actions. At the Closing, Purchaser shall take such actions on its part to consummate the transactions contemplated by
this Agreement including (i) the payment of the Closing Payment to Seller in accordance with Section 5.2(a), (ii) the payment of the Earn-out Amount to Escrow Agent in accordance with Section 5.2(b), (iii) the
payment of the Indemnity Escrow Amount to the Escrow Agent in accordance with Section 5.2(c), and (iv) the delivery to Seller the following documents duly authorized and executed by Purchaser: 
 (a) this Agreement; 
 (b) the
Assignment Agreement executed by Purchaser; 
 (c) the Bill of Sale; 
 (d) the Deed of Assignment and Transfer; 
 (e) the Seller Non-Competition Agreement; 
 (f) the Non-Competition Agreement with Babadzhov; and 
 (g) a Non-Competition Agreement with each Principal. 
 6.3 Seller’s Closing Actions. At the Closing, Seller shall take such actions on its part as necessary or appropriate to consummate the transactions contemplated by this Agreement including (i) the transfer of
the Transferred Assets and Assumed Liabilities, and (ii) the delivery to Purchaser of the following documents duly authorized and executed by Seller: 
 (a) a certified copy of resolutions of the Board of Directors and shareholders of Seller, authorizing the execution, delivery and performance of this Agreement and the other agreements and documents
contemplated hereby; 
 (b) the Assignment Agreement executed by Seller; 
 (c) the Bill of Sale executed by Seller; 
 (d) the Patent Assignment; 
 (e) the Trademark Assignment; 
  

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 (f) the Deed of Assignment and Transfer; 
 (g) the Seller Non-Competition Agreement; 
 (h) the Non-Competition Agreement executed with Babadzhov; 
 (i) a Principal Non-Competition Agreement with each
Principal; and 
 (j) all other documents, certificates and instruments reasonably deemed by Purchaser or its counsel necessary or
desirable to consummate the transactions contemplated hereby. 
 ARTICLE 7. 
 REPRESENTATIONS AND WARRANTIES OF SELLER 
 Except as set forth in the
Seller’s Disclosure Schedule, Seller represents and warrants to Purchaser, as of Closing, that: 
 7.1 Organization. Seller is a
corporation duly organized, validly existing, and in good standing under the laws of the State of California, with full power and authority to conduct its business as it is now being conducted, to own or use the assets that it purports to own or
use, to carry on its business as now conducted and to perform all its obligations under this Agreement. Seller is duly qualified to do business as a foreign corporation and is in good standing under the laws of each state or other jurisdiction in
which the nature of the activities conducted by it requires such qualification. 
 7.2 Authority; Validity. Seller has all necessary
power and authority to execute and deliver this Agreement and to perform all of its obligations hereunder. The execution, delivery and performance of this Agreement and the consummation of the transactions contemplated hereby have been duly and
validly authorized and approved by all necessary corporate action on the part of Seller. This Agreement has been duly and validly executed and delivered by Seller, and constitutes the valid and legally binding obligation of Seller, enforceable
against it in accordance with its terms, subject to bankruptcy, insolvency, reorganization, moratorium, or similar laws of general application now or hereafter in effect relating to or affecting creditors’ rights generally, public policy and
general principles of equity. 
 7.3 No Conflict. Neither the execution and delivery of this Agreement by Seller, nor the consummation
by Seller of the transactions contemplated hereby, will (a) constitute or result in a violation of any Law; (b) conflict with, result in the breach of, constitute a default under, or accelerate the performance provided by, any Contract to
which Seller is a party or by which its assets are bound; or (c) violate the articles of incorporation or bylaws of Seller. 
 7.4 Consents
and Approvals. Except as set forth in Section 7.4 of the Seller’s Disclosure Schedule, Seller is not required to obtain any Consent of, or required to make any declaration or filing with, any Governmental Authority or any other third
party in connection with the execution and delivery of this Agreement or the consummation of the transactions contemplated hereby. 
 7.5 Title
to Transferred Assets. Seller owns, will own at the Closing, and will deliver to Purchaser at the Closing good, valid and transferable title to all of the Transferred Assets, free and clear of any Liens. 
 7.6 Tangible Personal Property. Each item of Tangible Personal Property included in the Transferred Assets is being transferred on an “AS
IS” basis, subject to all faults, if any. To the 

  

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Knowledge of Seller, such Tangible Personal Property is suitable for immediate use in the ordinary course of business. 
 7.7 Tax Matters. Seller has timely paid all taxes payable by it for the Pre-Closing Period, which will have been required to be paid on or prior to
the Closing Date, the non-payment of which (a) could result in any Liens on any of the Transferred Assets or could otherwise adversely affect the use of the Transferred Assets; (b) could reasonably be expected to adversely affect
Seller’s ability to perform its obligations under this Agreement or under any agreements contemplated hereby; or (c) could reasonably be expected to result in Purchaser becoming liable or responsible therefor. Seller will pay all taxes
payable by it with respect to any Pre-Closing Period when due. 
 7.8 Financial Statements. 
 (a) Seller has delivered to Purchaser Seller’s Statement of Revenues and Expenses – Income Tax Basis for the period from January 18,
2008, through June 30, 2008 (the “Financial Statements Date”), and Seller’s Statement of Assets, Liabilities and Stockholders’ Equity – Income Tax Basis as of June 30, 2008, together with the compilation
report therefor delivered by Milam, Knecht & Warner, LLP (collectively, the “Seller Financial Statements”). The balance sheets referred to in the previous sentence present fairly in all material respects the financial
position of Seller on an income tax basis as of the date thereof, and the other financial statements referred to in such sentence present fairly in all material respects the results of Seller’s operations and cash flows on an income tax basis
for the respective fiscal periods therein set forth, in each case in accordance with Seller’s methods of accounting consistently applied and consistent with the books and records of Seller. Except for (i) those liabilities that are fully
reflected or reserved against on the Seller balance sheet included in the Financial Statements or fully disclosed in the related notes thereto and (ii) liabilities incurred in the ordinary course of business in amounts consistent with past
practice since the Financial Statements Date and which are either listed in Section 7.8 of the Seller’s Disclosure Schedule or are not material, individually or in the aggregate, Seller does not have any liabilities or obligations of any
nature, whether absolute, accrued, contingent or other and whether due or to become due. The books and records of Seller, true and complete copies of which have been previously made available to Purchaser, have been maintained in accordance with
good business practices and all applicable Laws and reflect only actual transactions. 
 (b) Since the Financial Statements Date, there
has not been a material adverse change in the financial condition, business prospects, or results of operations of Seller. 
 7.9
Compliance. Except as otherwise set forth in Section 7.9 of the Seller’s Disclosure Schedule, Seller is and has been in full compliance with, and no event has occurred or circumstance exists that (with or without notice or
lapse of time) may constitute or result in a violation of, any Law. Seller has not received any notice or other communication (whether written or oral) from any Governmental Authority or any other Person alleging that Seller or the Transferred
Assets actually, allegedly, or potentially violate, or fail to comply with, any Law. 
 7.10 Legal Proceedings. There is no pending or,
to the Knowledge of Seller, threatened Proceeding (a) by or against Seller or that otherwise relates to or may affect the Transferred Assets; or (b) that seeks to enjoin or restrict Seller’s ability to consummate the transactions
contemplated in this Agreement. 
 7.11 Contracts. Section 7.11 of the Seller’s Disclosure Schedule sets forth an accurate and
complete list of all Contracts relating to the Business (including, without limitation, all Transferred Contracts) to which Seller is a party, including reasonably complete descriptions of each such Contract. Each Transferred Contract is in full
force and effect and is valid and enforceable in accordance with its terms. Seller and each other Person or entity that has or had any obligation or liability under each Transferred 

  

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Contract have been in full compliance with all applicable terms and requirements of such Transferred Contract. 
 7.12 Solvency. Seller is not now insolvent and will not be rendered insolvent by the transactions contemplated by this Agreement. As used in this
Section, “insolvent” means that the sum of the debts and other liabilities of Seller exceed the present fair saleable value of Seller’s assets. Immediately after giving effect to the consummation of the transactions
contemplated by this Agreement, Seller (a) will be able to pay its liabilities as they become due in the usual course of its business; (b) will not have unreasonably small capital with which to conduct its present or proposed business; and
(c) will have assets the aggregate fair market value of which exceeds the amount of its liabilities. 
 7.13 Intellectual Property

 (a) All of Seller’s Intellectual Property Rights included as part of the Transferred Assets (collectively, the
“Intellectual Property”) are (i) valid and subsisting, provided that with respect to Seller’s unregistered trademarks, Seller represents only that to its Knowledge, such unregistered trademarks are valid and subsisting, and
provided further that Purchaser hereby acknowledges that Seller owns no issued patents, and (ii) not subject to any order, judgment, decree or agreement adversely affecting Seller’s use thereof or rights thereto. Seller has the right
pursuant to license, sublicense, agreement or permission to use, in the manner currently used by Seller, all of the Intellectual Property although with respect to Seller’s unregistered trademarks, Seller represents only that to its Knowledge,
Seller has the right to use such unregistered trademarks. Immediately after the Closing, Purchaser will have the right to use all of the Intellectual Property, on terms and conditions that are the same as those in effect for Seller immediately prior
to the Closing. 
 (b) Each employee of Seller and each employee of the Apptix WM Bulgaria, and each consultant to Seller and each
consultant to Apptix WM Bulgaria that has been involved in the creation or modification of Seller’s Intellectual Property, executed an assignment of inventions agreement in the forms provided to Purchaser, under which such employee or
consultant assigned to Seller or to Apptix WM Bulgaria, as applicable, all rights to all inventions and copyrights conceived by such employee or consultant in the course of such employment relationship or engagement with Seller or Apptix WM
Bulgaria, as applicable. 
 (c) There is no material Proceeding pending, asserted or, to the Knowledge of Seller, threatened concerning
Seller’s ownership, validity, registrability, enforceability, infringement, use or licensed right to use any Intellectual Property. 
 (d) Seller has taken reasonable and commercially practicable measures to protect the secrecy, confidentiality and value of the Intellectual Property. 
 (e) Seller has executed confidentiality and assignment of invention agreements with all of its employees and consultants that participated in the creation of the Intellectual Property. 
 (f) Neither the Intellectual Property nor any products or services now or heretofore marketed, distributed, or sold by Seller, nor Seller’s
use of the Intellectual Property at any time prior to the Closing, did and does infringe (nor has any claim been made that any such action infringes) the patents or other Intellectual Property Rights of others, provided that with respect to
Seller’s unregistered trademarks, Seller represents only that to its Knowledge, such unregistered trademarks did not and do not infringe (nor has any claim been made that any such action infringes) the Intellectual Property Rights of others.

  

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 (g) There is set forth in Section 7.13(g) of the Seller’s Disclosure Schedule a list of
all out-bound licenses that have been granted by Seller or Apptix WM Bulgaria for the use of, and other rights held by any third Person for the use of, the Intellectual Property Rights of Seller or Apptix WM Bulgaria. Except as set forth in Sections
7.11 and 7.13(g) of the Seller’s Disclosure Schedule, no third Person has any rights to use any of the Intellectual Property Rights of Seller or Apptix WM Bulgaria. 
 (h) There is set forth in Section 7.13(h) of the Seller’s Disclosure Schedule a list of all in-bound licenses that have been granted to Seller or Apptix WM Bulgaria for the use of, and other rights held by
Seller or Apptix WM Bulgaria for the use of, the Intellectual Property Rights of any third Person. Except as set forth in Section 7.13(h) of the Seller’s Disclosure Schedule, neither Seller nor Apptix WM Bulgaria has any rights to use any of
the Intellectual Property Rights of any third Person. 
 (i) There is set forth in Section 7.13(i) of the Seller’s Disclosure
Schedule a list of (i) all issued patents issued to or beneficially owned by Seller, (ii) all pending patent applications owned by or to which Seller has any rights, (iii) all trademarks registered to or owned or used by Seller
(collectively, the “Registered Intellectual Property Rights”). Except as set forth in Section 7.13 of the Seller’s Disclosure Schedule, Seller does not own any Registered Intellectual Property Rights. 
 7.14 Personal Data. In respect of the personal data (whether automatically or manually recorded) held by the Seller: 
 (a) The Seller has complied in all material respects with the provisions of the Law. 
 (b) The Seller has not been served with notice of any violation under the Law. 
 (c) No requests have been received from data subjects for access to the personal data nor have any complaints been made or concerns raised by such
Persons in respect of such data, and no enforcement notices have been served on the Seller and no fact or circumstance exists which might give rise to any such complaint, concern or enforcement notice. 
 7.15 Apptix WM Bulgaria. Except as otherwise set forth in Section 7.15 of the Seller’s Disclosure Schedule, with regard to Apptix WM
Bulgaria: 
 (a) Organization, Good Standing, and Qualification. Apptix WM Bulgaria is a limited liability company duly
organized, validly existing, and in good standing under the laws of Bulgaria and the City of Sofia and has all requisite corporate power and authority to carry on its business as now conducted and as proposed to be conducted. Apptix WM Bulgaria is
duly qualified to do business and is in good standing under the laws of each jurisdiction in which the nature of the activities conducted by it requires such qualification. 
 (b) Capitalization and Voting Rights. The authorized capital of Apptix WM Bulgaria consist of one hundred (100) quota of fifty
Bulgarian leva (50 BGN), none of which are certificated (the “Capital Shares”). 
 (c) Outstanding Capital Shares.
Seller owns all of the issued and outstanding Capital Shares of Apptix WM Bulgaria, and all such Capital Shares are duly and validly authorized and issued, fully paid and nonassessable, and were issued in compliance with all applicable laws
concerning the issuance of such Capital Shares. 
  

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 (d) Capitalization. There are no outstanding options, warrants, rights (including
conversion or preemptive rights) or agreements for the purchase or acquisition from Apptix WM Bulgaria any shares of its capital interests. Except for the rights listed in Section 7.15(d) of the Seller’s Disclosure Schedule, Apptix WM Bulgaria
is not a party or subject to any agreement or understanding, and, to the knowledge of Seller there is no agreement or understanding between any Persons and/or entities, which affects or relates to the voting or giving of written consents with
respect to any security or by a director of Apptix WM Bulgaria. 
 (e) No Conflict. Neither the execution and delivery of this
Agreement by Seller, nor the consummation by Seller of the transactions contemplated hereby, will (i) constitute or result in a violation of any Law; (ii) conflict with, result in the breach of, constitute a default under, or accelerate
the performance provided by, any Contract to which Apptix WM Bulgaria is a party or by which its assets are bound; or (iii) violate the governing corporate documents of Apptix WM Bulgaria. 
 (f) Consents and Approvals. Except as set forth in Section 7.15(f) of the Seller’s Disclosure Schedule, Apptix WM Bulgaria is
not required to obtain any Consent of, or required to make any declaration or filing with, any Governmental Authority or any other third party in connection with the consummation of the transactions contemplated by this Agreement. 
 (g) Subsidiaries. Apptix WM Bulgaria does not presently own or control, directly or indirectly, or hold any rights to acquire, any interest
in any other corporation, association, or other business entity. Apptix WM Bulgaria is not a participant in any joint venture, partnership, or similar arrangement. 
 (h) Tax Matters. Apptix WM Bulgaria has timely paid all taxes payable by it for the Pre-Closing Period, which will have been required to be paid on or prior to the Closing Date, the non-payment of
which (i) could result in any Liens on any of the Transferred Assets or could otherwise materially and adversely affect the use of the Transferred Assets; (ii) could reasonably be expected to materially and adversely affect Apptix WM
Bulgaria’s ability to perform its obligations under this Agreement or under any agreements contemplated hereby; or (iii) could reasonably be expected to result in Purchaser becoming liable or responsible therefor. Apptix WM Bulgaria will
pay all taxes payable by it with respect to any Pre-Closing Period when due. 
 (i) Valid Issuance. The Capital Shares of Apptix
WM Bulgaria owned by Seller and to be transferred in accordance with the terms of this Agreement, are duly and validly issued, fully paid and nonassessable and free of restrictions on transfer, other than restrictions on transfer under applicable
securities laws. At the Closing, Seller shall deliver to Purchaser title to the Capital Shares, free and clear of all Liens arising from any act or omission of or claim against Seller or Apptix WM Bulgaria. 
 (j) Compliance. Except as otherwise set forth in Section 7.15(j) of the Seller’s Disclosure Schedule, Apptix WM Bulgaria is and
has been in compliance, in all material respects, with, and no event has occurred or circumstance exists that (with or without notice or lapse of time) may constitute or result in a material violation of any Law. Neither Seller nor Apptix WM
Bulgaria has received any notice or other communication (whether written or oral) from any Governmental Authority or any other Person alleging that Apptix WM Bulgaria or the Transferred Assets actually, allegedly, or potentially violate, or fail to
comply with, any Law. Apptix WM Bulgaria possesses all certificates of authority and all other governmental authorizations, licenses, franchises and permits, as are necessary for it to engage in the business and operations currently conducted.

 (k) Legal Proceedings. There is no pending or, to the Knowledge of Seller or Apptix WM Bulgaria, threatened Proceeding
(i) by or against Apptix WM Bulgaria or that otherwise relates to or may affect the Transferred Assets; or (ii) that seeks to enjoin or restrict Seller’s ability to consummate the transactions contemplated in this Agreement.

  

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 (l) Financial Statements. The Seller has delivered or made available to Purchaser financial
statements that fairly present the cash items of income and expense recognized by Apptix WM Bulgaria for the periods January 5, 2008 through May 30, 2008. Apptix WM Bulgaria does not have any liabilities of any kind or nature, contingent
or otherwise, as of the Closing Date, other than liabilities incurred in the ordinary course of business (all of which shall be borne by Seller and paid to Purchaser within five (5) business days following demand except for any liability for
employee accrued vacation or sick time which shall not exceed thirty thousand dollars ($30,000), the liability for such employee accrued vacation and sick time shall remain a liability of, and shall be discharged by, Apptix WM Bulgaria). 

(m) Debt. Apptix WM Bulgaria has no outstanding indebtedness for borrowed money and is not a guarantor or otherwise contingently liable
for any such indebtedness. There exists no default under the provisions of any instrument evidencing any such indebtedness or of any agreement relating thereto. 
 (n) Employees, Labor Matters. Except as otherwise set forth in Section 7.15(n) of the Seller’s Disclosure Schedule: (i) Apptix WM Bulgaria is not a party to any employment or consulting
agreements, compensation, bonus or deferred compensation agreement, incentive or profit sharing plans or arrangements of any kind; and (ii) Apptix WM Bulgaria employs a total of thirty-three (33) full-time employees, and, to the Knowledge
of Seller, Seller and Apptix WM Bulgaria generally enjoy good employer-employee relationships. Apptix WM Bulgaria is not delinquent in payments to any of its employees for any wages, salaries, commissions, bonuses, or other direct compensation for
any services performed for it to the date hereof or amounts required to be reimbursed to such employees. Section 7.15(n) of the Seller’s Disclosure Schedule sets forth a complete list of each officer and employee of Apptix WM Bulgaria. The
employees designated on Section 7.15(n) of the Seller’s Disclosure Schedule, if any, as the “Seller Retained Employees” shall, prior to the Closing Date, be terminated by Apptix WM Bulgaria. 
 (o) Corporate Records, Copies of Documents. The books and records of Apptix WM Bulgaria contain true and complete records of all meetings
(and consents in lieu of meeting of) and any material actions taken by, its owner, its director and general managers, and committees, if any, of Apptix WM Bulgaria as required by applicable Law. The copies of the books and records of Apptix WM
Bulgaria made available to Purchaser are true and complete copies. 
 (p) Bank Accounts and Powers of Attorney. Set forth in
Section 7.15(p) of the Seller’s Disclosure Schedule is an accurate and complete list of: (i) the name of each bank or other financial institution in which Apptix WM Bulgaria has an account, credit line, lockbox or safe deposit box, the
relevant account or other identifying number thereof, and the names of all Persons authorized to draw thereon or who have access thereto, as the case may be, and (ii) the names of all Persons, if any, holding powers of attorney from Apptix WM
Bulgaria and a summary of the terms thereof. 
 7.16 Brokers or Finders. Except as disclosed on the Seller’s Disclosure Schedule,
Seller has no obligation or liability, contingent or otherwise, for brokerage or finders’ fees, agents’ commissions, or any other similar payment in connection with the transactions contemplated by this Agreement. 
  

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 ARTICLE 8. 
 REPRESENTATIONS AND WARRANTIES OF PURCHASER 
 Purchaser represents and warrants to Seller, as
of the date hereof (or as of such other date as may be expressly provided in any representation or warranty), as follows: 
 8.1
Organization. Purchaser is a corporation duly organized, validly existing, and in good standing under the laws of the State of Delaware, with full corporate power and authority to conduct its business as it is now being conducted.

 8.2 Authority; Validity. Purchaser has all necessary corporate power and authority to execute and deliver this Agreement and to
perform all of its obligations hereunder. The execution, delivery and performance of this Agreement and the consummation of the transactions contemplated hereby have been duly and validly authorized and approved by all necessary corporate action on
the part of Purchaser. This Agreement has been duly and validly executed and delivered by Purchaser, and constitutes the valid and legally binding obligation of Purchaser, enforceable against it in accordance with its terms, subject to bankruptcy,
insolvency, reorganization, moratorium, or similar laws of general application now or hereafter in effect relating to or affecting creditors’ rights generally, public policy and general principles of equity. 
 8.3 No Conflict. Neither the execution and delivery of this Agreement by Purchaser, nor the consummation by Purchaser of the transactions
contemplated hereby will (a) to the Knowledge of Purchaser, constitute or result in a violation of any Law; (b) conflict with, result in the breach of, constitute a default under, or accelerate the performance provided by, any Contract to
which Purchaser is a party or by which its assets are bound; or (c) violate the articles of incorporation or corporate regulations of Purchaser. 
 8.4 Consents and Approvals. Purchaser is not required to obtain any Consent of, or required to make any declaration or filing with, any Governmental Authority or any third party in connection with the execution and
delivery of this Agreement or the consummation of the transactions contemplated hereby. 
 8.5 Legal Proceedings. There is no pending or
threatened Proceeding that seeks to or is expected to (a) enjoin or restrict Purchaser’s ability to consummate the transactions contemplated in this Agreement or (b) materially prevent, materially delay or make illegal the
consummation of the transactions contemplated by this Agreement. 
 8.6 Brokers or Finders. The Purchaser has no obligation or
liability, contingent or otherwise, for brokerage or finders’ fees, agents’ commissions, or any other similar payment in connection with the transactions contemplated by this Agreement. 
 ARTICLE 9. 
 ADDITIONAL COVENANTS

 9.1 Best Efforts; Government Approvals. Each Party shall use its Best Efforts to take, or cause to be taken, all actions and
to do, or cause to be done, all things necessary, proper or advisable to: (a) consummate and make effective as promptly as practicable the transactions contemplated hereby; and (b) obtain any required approvals, consents or other
authorizations as promptly as practicable. The Parties shall cooperate with each other in preparing, submitting and filing, as expeditiously as possible, all applications, notifications and report forms as may be required by applicable law with
respect to the transactions contemplated by this Agreement. 
  

 15 

 9.2 Further Assurances. The Parties shall cooperate reasonably with each other in connection with
any steps required to be taken as part of their respective obligations under this Agreement, and shall (a) furnish upon request to each other such further information; (b) execute and deliver to each other such other documents; and
(c) do such other acts and things, all as the other Parties may reasonably request for the purpose of carrying out the intent of this Agreement and the transactions contemplated hereby. Without limiting the generality of the foregoing:

 (a) Capital Shares of Apptix WM Bulgaria. The parties hereby acknowledge the ownership of Apptix WM Bulgaria
(i.e., through ownership of its Capital Shares) will need to be registered in the name of Purchaser in the Bulgarian Commercial Registry after the Closing, and agree that (i) Seller (A) shall not cause or permit title thereto to be
transferred to any Person other than Purchaser, and shall not grant to any Person other than Purchaser any proxy or other rights with respect to such Capital Shares, and (B) shall hold and turn over to Purchaser, upon receipt, any distributions
received by Seller on or after the Closing with respect to the Capital Shares, and (ii) together with Purchaser their best efforts to cause title to the Capital Shares to be registered in the name of Purchaser as promptly as reasonably
practicable after the Closing. 
 (b) Limitations Upon Power of Attorney to Assen Lyubenov Kanev. Seller agrees
that upon the Closing, Seller and Purchaser shall deliver to Assen Lyubenov Kanev a written instruction that (i) he may exercise the powers granted under the existing power of attorney with respect to the shares of Apptix WM Bulgaria only with
the prior express written consent of Purchaser and (ii) Purchaser shall be entitled to revoke such power of attorney upon delivery of a written revocation to Assen Lyubenov Kanev. 
 9.3 Payment of Excluded Liabilities. Seller shall pay, or make adequate provision for the payment, in full all of the Excluded Liabilities. 
 9.4 Post-Closing Delivery of Consolidated Financial Statements. As promptly as reasonably practicable after the Closing (and in all events
within thirty (30) days thereafter), Seller shall prepare and cause its chief financial officer to certify and deliver to Purchaser consolidated statements of revenue and expenses for the period ending July 31, 2008, and a consolidated
statement of assets, liabilities, and stockholders’ equity as of July 31, 2008 (the “July 2008 Financial Statements”), for Seller’s United States operations, prepared in each instance in a manner consistent with the
methods of accounting used in preparing the Seller Financial Statements. Seller hereby represents and warrants that: 
 (a) The balance
sheets included as part of the July 2008 Financial Statements shall present fairly in all material respects the financial position of Seller as of the date thereof, and the other financial statements included as part of the July 2008 Financial
Statements, shall present fairly in all material respects the results of Seller’s operations and cash flows for the respective fiscal periods therein set forth, in each case in accordance with Seller’s methods of accounting consistently
applied and consistent with the books and records of Seller; and 
 (b) Except for (i) those liabilities that are fully reflected
or reserved against on the Seller balance sheet included in the July 2008 Financial Statements or fully disclosed in the related notes thereto and (ii) liabilities incurred in the ordinary course of business in amounts consistent with past
practice between July 31, 2008, and the Closing Date and which Seller shall list in written statement delivered to Purchaser with the July 2008 Financial Statements (none of which shall be material, individually or in the aggregate), Seller has
not incurred and shall not incur between the Financial Statements Date and the Closing Date any liabilities or obligations of any nature, whether absolute, accrued, contingent or other and whether due or to become due. 
  

 16 

 9.5 Post-Closing Delivery of Consents. As promptly as reasonably practicable following the
execution of this Agreement, and in all events within thirty (30) days, and except to the extent waived by Purchaser in writing, Seller shall procure the consents of all counterparties to Seller’s Contracts whose consent is required in
order for such Contracts to be assigned to Buyer hereunder. 
 ARTICLE 10. 
 INDEMNIFICATION 
 10.1 Indemnification by Parties 
 (a) Seller shall indemnify and hold harmless Purchaser and its affiliates, officers, directors, employees, agents and other representatives
(collectively, the “Purchaser Indemnified Parties”) from and against any and all loss, liability, claim, damage and expense (including reasonable costs of investigation and defense and reasonable attorneys’ fees), whether or
not involving a third-party claim (but specifically excluding incidental or consequential damages) (collectively, “Damages”) arising from or in connection with: 
 (i) any breach of any representation or warranty made by Seller in this Agreement, the Seller’s Disclosure Schedule, or any other certificate
or document delivered by Seller pursuant to this Agreement; 
 (ii) any breach of any representation or warranty made by Seller in this
Agreement, other than any such breach that is expressly identified in a waiver executed and delivered by Purchaser; 
 (iii) any
liability arising out of the ownership or operation of the Transferred Assets, or any service provided by Seller, prior to the Closing Date; 
 (iv) all debts, liabilities, and obligations of Apptix WM Bulgaria arising with respect to the operation of Apptix WM Bulgaria prior to the Closing Date; 
 (v) any Excluded Liabilities; 
 (vi) any breach by Seller of any of its covenants under this
Agreement; and 
 (vii) any claim by any Person for brokerage or finder’s fees or commissions or similar payments based upon any
agreement or understanding alleged to have been made by any such Person with Seller (or any Person acting on its behalf) in connection with any of the transactions contemplated by this Agreement. 
 (b) Purchaser shall indemnify and hold harmless Seller and its affiliates, officers, directors, employees, agents and other representatives
(collectively, the “Seller Indemnified Parties” and, together with the Purchaser Indemnified Parties, the “Indemnified Parties”) from and against any and all loss, liability, claim, damage and expense (including
reasonable costs of investigation and defense and reasonable attorneys’ fees), whether or not involving a third-party claim (but specifically excluding incidental or consequential damages) arising from or in connection with: 
 (i) any breach of any representation or warranty made by Purchaser in this Agreement or any certificate or document delivered by Seller pursuant to
this Agreement; 
  

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 (ii) any liability arising in the Post Closing Period out of Purchaser’s ownership or
operation of the Transferred Assets following the Closing, or any service provided by Purchaser in the Post Closing Period and all Assumed Liabilities; and 
 (iii) any claim by any Person for brokerage or finder’s fees or commissions or similar payments based upon any agreement or understanding alleged to have been made by any such Person with Purchaser (or any
Person acting on its behalf) in connection with any of the transactions contemplated by this Agreement. 
 (c) Except for claims based
upon the fraudulent conduct of a Party, the indemnification rights contained herein shall be the sole and exclusive remedy for any matter, event, act or failure to act which would constitute a breach of this Agreement by any party hereto.

 10.2 Time Limitations. 
 (a) If the Closing occurs, (a) Seller will have no liability (for indemnification or otherwise) with respect to any representation or warranty, or covenant or obligation to be performed and complied with prior to the Closing
Date, other than those in Sections 7.2, 7.5, 7.7, and 7.13, unless on or before the expiration of fifteen (15) months following the Closing Date Purchaser notifies Seller of a claim specifying the factual
basis of that claim in reasonable detail to the extent then known by Purchaser; (b) Seller will have no liability (for indemnification or otherwise) with respect to a breach of the representations and warranties in Sections 7.2,
7.5, and 7.13, unless on or before the expiration of the statute of limitations applicable to such claim, Purchaser notifies Seller of a claim specifying the factual basis of that claim in reasonable detail to the extent then known by
Purchaser; (c) Seller will have no liability (for indemnification or otherwise) with respect to a breach of the representation and warranty in Section 7.7, unless on or before the expiration of sixty (60) days following the
expiration of the statute of limitations applicable to such claim, Purchaser notifies Seller of a claim specifying the factual basis of that claim in reasonable detail to the extent then known by Purchaser. 
 (b) If the Closing occurs, Purchaser will have no liability (for indemnification or otherwise) with respect to any representation or warranty, or
covenant or obligation to be performed and complied with prior to the Closing Date, unless on or before the expiration of fifteen (15) months following the Closing Date Seller notifies Purchaser of a claim specifying the factual basis of that
claim in reasonable detail to the extent then known by Seller. 
 10.3 Use of Indemnity Escrow Amount; Damage Limitations. Any
obligation of the Seller under Section 10.1(a) shall initially be satisfied from the funds held in escrow with the Escrow Agent. To the extent such funds are insufficient to satisfy an amount payable to Purchaser under this Article
10, Seller shall be responsible for paying the balance to Purchaser within ten (10) Business Days following written notice from Purchaser to Seller of such determination, provided, however, that except for claims of fraud, Seller’s
liability for Damages for any reason shall not exceed the Indemnity Escrow Amount. 
 10.4 Procedure For Indemnification—Third Party Claims

 (a) Promptly after receipt by an Indemnified Party under Section 10.1 of notice of the commencement of any
Proceeding against it, such Indemnified Party will, if a claim is to be made against a Party under such Section (such Party being referred to herein as the “Indemnifying Party”), give notice to the Indemnifying Party of the
commencement of such claim, but the failure to notify the Indemnifying Party will not relieve the Indemnifying Party of any liability that it may have to any Indemnified Party, except to the extent that the Indemnifying Party demonstrates that the
defense of such action is prejudiced by the Indemnified Party’s failure to give such notice. 
  

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 (b) If any Proceeding referred to in Section 10.1(a) is brought against an
Indemnified Party and it gives notice to the Indemnifying Party of the commencement of such Proceeding, the Indemnifying Party will be entitled to participate in such Proceeding and shall assume the defense of such Proceeding with counsel reasonably
satisfactory to the Indemnified Party (unless (i) the Indemnifying Party is also a party to such Proceeding and the Indemnified Party determines in good faith pursuant to an opinion of counsel would be unethical, or (ii) the
Indemnifying Party fails to provide reasonable assurance to the Indemnified Party of its financial capacity to defend such Proceeding and provide indemnification with respect to such Proceeding), and the Indemnifying Party will not, as long as it
diligently conducts such defense, be liable to the Indemnified Party under this ARTICLE 10 for any fees of other counsel or any other expenses with respect to the defense of such Proceeding, in each case subsequently incurred by the
Indemnified Party in connection with the defense of such Proceeding. No compromise or settlement of such claims may be effected by the Indemnifying Party without the Indemnified Party’s consent (not to be unreasonably withheld) unless
(A) there is no finding or admission of any violation of Law or any violation of the rights of any Indemnified Party and no effect on any other claims that may be made against the Indemnified Party, and (B) the sole relief provided is
monetary damages that are paid in full by the Indemnifying Party; and (iii) the Indemnified Party will have no liability with respect to any compromise or settlement of such claims effected without its consent. So long as the Indemnified Party
is defending and indemnifying the Indemnified Party, both the Indemnified Party and the Indemnifying Party will be bound by any determination made in such Proceeding or any compromise or settlement effected by the Indemnified Party. 
 (c) Notwithstanding the foregoing, if an Indemnified Party determines in good faith that there is a reasonable probability that a Proceeding may
adversely affect it or its affiliates other than as a result of monetary damages for which it would be entitled to indemnification under this Agreement, the Indemnified Party may, by notice to Indemnifying Party, assume the exclusive right to
defend, compromise, or settle such Proceeding and the Indemnifying Party shall be relieved of any further obligations hereunder with a respect thereto and the Indemnifying Party shall not be bound by any determination of a Proceeding so defended or
any compromise or settlement effected without its consent (which may not be unreasonably withheld). 
 (d) The Parties hereby consent
to the non-exclusive jurisdiction of any court in which a Proceeding is brought against any Indemnified Party for purposes of any claim that an Indemnified Party may have under this Agreement with respect to such Proceeding or the matters alleged
therein. 
 10.4 Procedure For Indemnification—Other Claims. A claim for indemnification for any matter not involving a third-party claim
may be asserted by written notice to the Indemnifying Party as provided herein. 
 10.5 Indemnification In Case Of Strict Liability Or Indemnitee
Negligence. THE INDEMNIFICATION PROVISIONS IN THIS ARTICLE 10 SHALL BE ENFORCEABLE REGARDLESS OF WHETHER THE LIABILITY IS BASED UPON PAST, PRESENT OR FUTURE ACTS, CLAIMS OR LAW (INCLUDING ANY PAST, PRESENT OR FUTURE BULK SALES LAW,
ENVIRONMENTAL LAW, FRAUDULENT TRANSFER ACT, OCCUPATIONAL SAFETY AND HEALTH LAW OR PRODUCTS LIABILITY, SECURITIES OR OTHER LEGAL REQUIREMENT) AND REGARDLESS OF WHETHER ANY PERSON (INCLUDING THE PERSON FROM WHOM INDEMNIFICATION IS SOUGHT) ALLEGES OR
PROVES THE SOLE, CONCURRENT, CONTRIBUTORY OR COMPARATIVE NEGLIGENCE OF THE PERSON SEEKING INDEMNIFICATION OR THE SOLE OR CONCURRENT STRICT LIABILITY IMPOSED UPON THE PERSON SEEKING INDEMNIFICATION. 
  

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 ARTICLE 11. 
 TAX MATTERS 
 11.1 Tax Cooperation. Purchaser and Seller hereby agree to furnish or cause
to be furnished to each other, upon request, as promptly as practicable, such information and assistance relating to the Transferred Assets as is reasonably necessary for the filing of all tax returns, and making of any election related to taxes,
the preparation for any audit by any taxing authority, and the prosecution or defense of any claim, suit or proceeding relating to any tax return. Purchaser and Seller shall cooperate with each other in the conduct of any audit or other proceeding
related to taxes involving the Business and each shall execute and deliver such powers of attorney and other documents as are necessary to carry out the intent of this Section 11.1. 
 11.2 Allocation of Taxes 
 (a) Seller
shall be responsible for and shall indemnify Purchaser against all taxes arising by reason of or attributable to the Transferred Assets, or their use, operation, and transactions with respect thereto during or with respect to the Pre-Closing Period.

 (b) Purchaser shall be responsible for and shall indemnify Seller against all taxes arising by reason of or attributable to the
Transferred Assets, or their use, operation, and transactions with respect thereto during or with respect to the Post-Closing Period. 
 (c) All personal property taxes and similar ad valorem obligations levied with respect to the Transferred Assets for a taxable period that includes some portion of the Pre-Closing Period and some potion of the Post-Closing
Period shall be apportioned between Purchaser and Seller based on the number of days of such taxable period included in the applicable Pre-Closing Period and the number of days of such taxable period included in the Post-Closing Period. Seller shall
be liable for the proportionate amount of such taxes that are attributable to the Pre-Closing Period, and Purchaser shall be liable for the proportionate amount of such taxes that are attributable to the Post-Closing Period. 
 (d) All taxes relating to, resulting from or arising out of the transfer of Seller’s assets to Purchaser as contemplated in this Agreement
(other than sales or transfer taxes which shall be borne by the Purchaser) shall be borne by the Party on whom the tax is imposed by the relevant tax office or agency of any governmental unit, and each Party covenants and agrees to pay such taxes
prior to delinquency. As illustrative and not exhaustive examples of the preceding sentence Seller shall bear the responsibility of paying the capital gains tax imposed. 
 ARTICLE 12. 
 CONFIDENTIALITY; MUTUAL PUBLICITY RIGHTS 
 12.1 Confidentiality. This Agreement, its negotiation, and any information disclosed relating to the underlying transaction is strictly confidential
and subject to the Nondisclosure Agreement between the Parties dated as of April 25, 2008 (the “NDA”). Notwithstanding the aforementioned, upon the Closing, (i) Seller may, if required, file a copy of this Agreement on
Form 8-K, and (ii) Seller and Purchaser each may issue a press release announcing, or otherwise publicly announce (including by filing a Current Report on Form 8-K or an oral announcement at, for example, an earnings conference call), such
execution or Closing subject to the other Party being provided a meaningful opportunity to review, comment upon and approve such Party’s press release or other public announcement, such approval not to be unreasonably withheld. 
  

 20 

 12.2 Effect of Disclosure. A Party disclosing Confidential Information (“Disclosing
Party”) is not waiving, and will not be deemed to have waived or diminished, any of its attorney work product protections, attorney-client privileges or similar protections and privileges as a result of disclosing its Confidential
Information (including Confidential Information related to pending or threatened litigation) to the other Party (“Receiving Party”), regardless of whether the Disclosing Party has asserted, or is or may be entitled to assert, such
privileges and protections. The Parties (a) share a common legal and commercial interest in all of the Disclosing Party’s Confidential Information that is subject to such privileges and protections; (b) are or may become joint
defendants in Proceedings to which the Disclosing Party’s Confidential Information covered by such protections and privileges relates; (c) intend that such privileges and protections remain intact should either Party become subject to any
actual or threatened Proceeding to which the Disclosing Party’s Confidential Information covered by such protections and privileges relates; and (d) intend that after the Closing the Receiving Party shall have the right to assert such
protections and privileges. No Receiving Party shall admit, claim or contend, in Proceedings involving either party or otherwise, that any Disclosing Party waived any of its attorney work-product protections, attorney-client privileges or similar
protections and privileges with respect to any information, documents or other material not disclosed to a Receiving Party due to the Disclosing Party disclosing its Confidential Information (including Confidential Information related to pending or
threatened litigation) to the Receiving Party. 
 ARTICLE 13. 
 MISCELLANEOUS 
 13.1
Notices. All notices permitted or required by this Agreement shall be in writing, and shall be deemed to have been delivered and received (a) when personally delivered, (b) on the third (3rd) business day after the date on which deposited in the United States mail, postage prepaid, certified or registered mail, return receipt requested, or (c) on the date on
which transmitted by facsimile or other electronic means producing a tangible receipt evidencing a successful transmission, or (d) on the next business day after the date on which deposited with a regulated public carrier or nationally
recognized overnight commercial delivery service (e.g., Federal Express, DHL, etc.), addressed to the Party for whom intended at the address set forth on the signature page of this Agreement, or such other address, notice of which has
been delivered in a manner permitted by this Section 13.1. 
 13.2 Entire Agreement. All Exhibits and Schedules hereto
(attached hereto and as executed) shall be deemed to be incorporated into and made part of this Agreement. This Agreement, together with all Exhibits and Schedules hereto, constitutes the entire agreement between the Parties with respect to the
subject matter hereof, and supersedes any and all prior agreements and arrangements, whether written or oral, that may exist between the Parties with respect to the subject matter hereof except for the NDA, which shall remain in full force and
effect with respect to the “Confidential Information” described therein and shall co-exist with this Agreement. This Agreement may not be amended, supplemented or otherwise modified except by a writing duly executed by Purchaser and
Seller. 
 13.3 Binding Effect; Assignment. This Agreement shall be binding upon and inure to the benefit of the Parties and their
respective successors and permitted assigns. Neither Party may assign this Agreement or any of its rights and obligations hereunder without the prior written consent of the other Parties, provided however, that Purchaser may assign this Agreements
or portions thereof to its affiliates or subsidiaries without the consent of Seller. 
 13.4 Non-Waiver. The failure in any one or more
instances of a Party to insist upon performance of any of the terms, covenants or conditions of this Agreement, to exercise any right or privilege in this Agreement conferred, or the waiver by said Party of any breach of any of the terms, covenants
or 

  

 21 

 
conditions of this Agreement, shall not be construed as a subsequent waiver of any such terms, covenants, conditions, rights or privileges, but the same
shall continue and remain in full force and effect as if no such forbearance or waiver had occurred. No waiver shall be effective unless it is in writing and signed by an authorized representative of the waiving Party. 
 13.5 Counterparts; Electronic Signature. This Agreement may be executed in any number of counterparts, each of which shall be deemed to be an
original, and all such counterparts shall constitute one and the same instrument. A copy of this Agreement that is executed by a Party and transmitted by that Party to the other Party by facsimile or email shall be binding upon the signatory to the
same extent as a copy hereof containing the signing Party’s original signature. 
 13.6 Severability. The invalidity of any
provision of this Agreement or portion of a provision shall not affect the validity of any other provision of this Agreement or the remaining portion of the applicable provision. 
 13.7 Further Assurances. From and after the Closing, each Party covenants and agrees to make, execute, and deliver such documents and instruments, and to take such further actions, as may be
necessary or convenient for effectuating the Transactions contemplated by this Agreement. 
 13.8 Time of Essence. With regard to all
dates and time periods set forth or referred to in this Agreement, time is of the essence. 
 13.9 Governing Law. This Agreement shall
be governed by and construed in accordance with the laws of the State of California, without regard to conflicts of law principles. Any dispute relating to or arising out of or in connection with this Agreement shall be resolved in the courts of
Santa Barbara, California, with exclusive original jurisdiction in the County of Santa Barbara, California. 
 13.10 Expenses. All fees
and expenses (including fees of counsel, accountants and other advisors) incurred by any Party in connection with the negotiation and execution of this Agreement or the consummation of the transactions contemplated hereby shall be borne by such
Party. 
 [Signatures appear on following page.] 
  

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 IN WITNESS WHEREOF, each Party has caused this Agreement to be executed by its duly
authorized officer as of the date first above written. 
  

					
	 “Seller:”
  
 WEBMESSENGER, INC., a California corporation
  
 By /s/ Vladimir B.
Babadzhov                                        
            
       Vladimir B. Babadzhov, its Chief Executive
Officer
  
	  		 	 “Purchaser:”
  
 CALLWAVE, INC., a Delaware corporation
  
 By /s/ Jeffrey M.
Cavins                                        
                    
       Jeffrey M. Cavins, Chief Executive Officer
  

	 Address and Facsimile No. for Notices:
  
 WebMessenger, Inc.
 9444 Haines Canyon Avenue
 Tujunga, CA 91024
  
 Telephone No.: (818) 352-7800
 Facsimile No.: (818) 352-5445
 Email: val@webmessenger.com
  
 With a copy
to:
  
 M. Sean McMillan, Esq.
 Greenberg Traurig LLP
 2450 Colorado Avenue
 Suite 400E
 Santa Monica, California 90404
  
 Telephone No.: (310) 586-7700
 Facsimile No.: (310) 586-7800
 Email: mcmillan@gtlaw.com
  
	  		 	 Date
  
 Address and Facsimile No. for Notices:
  
 CallWave, Inc.
 ATTN: Chief Financial Officer
 136 West Canon Perdido, Suite A
 Santa Barbara, CA 93101
  
 Telephone No.: (805) 690-4035
 Facsimile No.: (805) 456-6413
 Email: Mark.Stubbs@callwave.com
  
 With a copy to:
  
 Michael E. Pfau, Esq.
 Reicker, Pfau, Pyle & McRoy LLP
 1421 State Street, Suite B
 P.O. Box 1470
 Santa Barbara, CA 93102-1470
  

Telephone No.: (805) 966-2440
 Facsimile No.: (805) 966-3320
 Email: mpfau@rppmh.com

  

 23

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