Document:

EX-10.1

  Case 16-10284-KJC         Doc
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 Exhibit 10.1 

EXHIBIT A 

  

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 SENIOR SECURED SUPER-PRIORITY 

POST-PETITION PROMISSORY NOTE 
  

					
	Original Principal Amount: U.S. $3,000,000	  	May [    ], 2016	  	

 For value received, David W. Carickhoff (the “Chapter 11 Trustee”), solely in his capacity as
chapter 11 trustee for the estate (the “Estate”) of Wave Systems, Inc. (the “Debtor”), promises to pay to the order of ESW Capital, LLC., a Delaware limited liability company (the “Post-Petition
Lender”), the lesser of (a) $3,000,000 (the “Stated Principal Amount”) or (b) the amount of advances from time to time outstanding hereunder together with interest and other amounts as provided herein. 

WHEREAS, on February 1, 2016 (the “Petition Date”), the Debtor filed with the United States Bankruptcy Court for the District
of Delaware (the “Bankruptcy Court”) a voluntary petition for relief (the “Chapter 7 Case”) under chapter 7 of title 11 of the United States Code (the “Bankruptcy Code”); 

WHEREAS, on or about February 1, 2016, David W. Carickhoff was appointed as the chapter 7 trustee (in such capacity, the “Chapter 7
Trustee”). 
 WHEREAS, on April 4, 2016, ESW Capital, LLC (the “ESW”) submitted its bid (Docket No. 110-1 (Exhibit
A)) (as amended, supplemented or otherwise modified, the “ESW Bid”); 
 WHEREAS, pursuant to the ESW Bid, the Chapter 7
Case would be converted to a case under Chapter 11 of the Bankruptcy Code and ESW would provide post-petition financing to the Chapter 11 Trustee on behalf of the Estate; 

WHEREAS, on April 12, 2016, the Chapter 7 Trustee declared the bid of Chime Inc. to be the successful bid for the wave.com Domain Name, and
the ESW Bid to be the successful bid to sponsor a plan of reorganization (Docket No. 90); 
 WHEREAS, on April 14, 2016, the Court entered
the Order Pursuant to U.S.C. §§ 105(a) and 363, and Federal Rules of Bankruptcy Procedure 2002, 6004, 6006 and 9014 (I) Approving the Sale of Certain of the Debtor’s Assets; (II) Authorizing Consummation of the
Transaction Contemplated Therein; and (III) Granting Related Relief (Docket No. 98) (the “Chime Sale Order”) and pursuant to the Chime Sale Order, the Estate received proceeds in the amount of $420,000 (the “Chime
Proceeds”); 
 WHEREAS, on April 29, 2016, the Court entered an order approving the ESW Bid as the Successful Bid to sponsor a plan
of reorganization (Docket No. 110) (the “Bid Approval Order”); 
 WHEREAS, the final terms of the ESW Bid are
attached to the Bid Approval Order; 
 WHEREAS, May 16, 2016, the Court entered an order (Docket No. 118) converting the Chapter 7 Case into
a case under Chapter 11 of the Bankruptcy Code (the “Chapter 11 Case”) and directing the appointment of a chapter 11 trustee; 

  
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 WHEREAS, on May 20, 2016, the United States Trustee appointed David W. Carickhoff as
chapter 11 trustee of the Debtor’s Estate; 
 WHEREAS, the Post-Petition Lender is committing hereby to provide post-petition
financing (the “Post-Petition Financing”) in an amount necessary to fund both the Debtor’s operations and the administrative costs of the Chapter 11 Case as set forth on an agreed-upon budget submitted by the Chapter 11
Trustee and acceptable to Post-Petition Lender, in an amount not more than the Stated Principal Amount, upon the terms and conditions set forth herein; 

WHEREAS, the Chapter 11 Trustee requires financing in an amount necessary to fund the Debtor’s normal business operations, the
administrative costs of the Chapter 11 Case and pursuit of a confirmed plan of reorganization; 
 WHEREAS, the Chapter 11 Trustee, on behalf
of the Estate, has requested that the Post-Petition Lender provide a secured multiple draw term loan credit facility of up to $3,000,000 (the “Post-Petition Facility”) to fund the day-to-day operating working capital needs and
chapter 11 administrative costs of the Chapter 11 Case and the Post-Petition Lender is willing to extend such financing to the Chapter 11 Trustee, on behalf of the Estate, on the terms and subject to the conditions set forth herein; and 

NOW, THEREFORE, the Chapter 11 Trustee, on behalf of the Estate, has made this Post-Petition Promissory Note (this “Post-Petition
Note”) in favor of the Post-Petition Lender to evidence the Post-Petition Facility and pursuant to the Interim Financing Order Pursuant to Sections 105, 361, 362, 363(c), 364(c)(1), 364(c)(2), 364(d)(1), 364(e) and 507 of the Bankruptcy
Code I) Authorizing Chapter 11 Trustee To (A) Obtain Post-Petition Secured Financing from ESW Capital, LLC; (B) Utilize Cash Collateral; And (C) Pay Certain Related Fees And Charges; and (II) Scheduling a Final Hearing [Docket No. TBD] (as
amended, and including any subsequently entered final financing order, the “Post-Petition Financing Order”). Capitalized terms not otherwise defined herein have the meanings given thereto in the Post-Petition Financing Order. 

1. Advances; Increase in Principal Amount. 

(a) Subject to the terms and conditions set forth in this Post-Petition Note, the Post-Petition Lender shall make advances to the Chapter 11
Trustee as follows (each individually a “Loan” and collectively, the “Loans”): 
 (i) on
the first business day after entry of the Interim Post-Petition Financing Order (the “Initial Loan”), an amount equal to (A) $100,000 plus (B) the estimated “Disbursements” set forth in the Budget less (X)
any actual cash on hand as of the Funding Date, as set forth in week one of the cash forecast attached hereto as Exhibit A (as may be modified from time to time by the Chapter 11 Trustee with the consent of the Post-Petition Lender in its
sole discretion, the “Post-Petition Budget”); and 
 (ii) on every Monday beginning the Monday after the
Initial Loan (unless such date is not a business day at which point funding shall occur on the next succeeding business day) (each, a “Funding Date”) an amount equal to (A) $100,000 plus (B) the estimated
“Disbursements” for such week in the Budget less (X) any actual cash on hand as of the Funding Date and (Y) any actual receipts by the Estate for the week prior to the Funding Date. 

  
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 (b) Except with respect to the Initial Loan, which shall be automatically funded by the
Post-Petition Lender on the first business day after entry of the Interim Post-Petition Financing Order, by noon prevailing eastern time on the business day immediately prior to a Funding Date, the Chapter 11 Trustee shall give the Post-Petition
Lender written notice of its request for a Loan and shall specify the Funding Date (which must be the immediately subsequent business day) and the amount of the requested Loan (a “Borrowing Notice”). The Borrowing Notice shall
include (a) a calculation of the requested Loan amount including reasonable detail regarding the cash on hand included in the calculation and the projected Disbursements for the weekly borrowing period, (b) an updated Post-Petition Budget including
actuals for prior periods, and (c) a calculation of any variance from the Budget. The Borrowing Notice shall also be accompanied by a comparison of actual weekly receipts to those set forth in the Post-Petition Budget. The obligation of
Post-Petition Lender to fund is subject to compliance with the terms and conditions of this Post-Petition Note and the Post-Petition Financing Order. The Post-Petition Lender shall make each properly authorized Loan in immediately available funds by
wire transfer to an account designated by the Chapter 11 Trustee, as soon as practicable, but in no event later than the noon prevailing eastern time on the applicable Funding Date. 

(i) The final Borrowing Notice (the “Final Borrowing Notice”) shall include the amount of accrued fees
estimated to be due and owing to the Estate Professionals, pursuant to further order from the Court, including such allowed fees to be paid after the consummation of the ESW Asset Sale or the Effective Date of the ESW Plan. Such accrued amounts may
not exceed amounts budgeted under the Budget for each respective Estate Professional. The Post-Petition Lender will fund the amounts sought under the Final Borrowing Notice from the Post-Petition Loans. Such amounts shall be held by the Estate, or
subsequently, a distribution agent, in a segregated account, payable only upon further fee order from the Court. To the extent such amounts are not disbursed pursuant to orders of the Court, such amounts shall be returned to the Post-Petition
Lender. 
 (c) The Post-Petition Lender shall not be obligated to make any Loan (including the initial Loan hereunder), or to take, fulfill,
or perform any other action hereunder, unless the following conditions are satisfied as of the making of such Loan, in Post-Petition Lender’s reasonable discretion, or waived in writing by Post-Petition Lender in its sole discretion: 

(i) This Post-Petition Note, together with any additional agreements, documents, instruments and certificates executed, the ESW
Bid (as defined below) and any orders in connection therewith, or otherwise delivered in connection therewith by the Chapter 11 Trustee on behalf of the Estate (collectively, the “Post-Petition Documents”) shall have been executed
or entered, as applicable, and delivered, if applicable, to Post-Petition Lender in form and substance acceptable to Post-Petition Lender and shall be in full, force and effect. 

(ii) The consummation of the transactions contemplated hereby or entered into in contemplation hereof shall not contravene,
violate or conflict with, nor involve the Post-Petition Lender in a violation of applicable law or regulation. 
 (iii) The
applicable Budget shall have been approved in writing by the Post-Petition Lender. 
 (iv) All consents, authorizations and
filings, if any, required in connection with the execution, delivery and performance by the Chapter 11 Trustee, and the validity and enforceability against the Estate, of the Post-Petition Note, shall have been obtained or made, and such consents,
authorizations and filings shall be in full force and effect. 

  
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 (v) Prior to the making of the initial Loan, the Post-Petition Lender shall
have received a schedule describing all insurance maintained by the Chapter 11 Trustee and a loss payee endorsement with respect thereto and for any subsequent Loan such insurance shall be in full force and effect. 

(vi) The Post-Petition Lender shall have received a copy of the applicable Post-Petition Financing Order, and such
Post-Petition Financing Order shall have been entered by the Bankruptcy Court in form and substance acceptable to the Post-Petition Lender in its sole discretion, and shall be in full force and effect and shall not have been vacated, stayed,
reversed, modified or amended. 
 (vii) No event shall have occurred and be continuing, or would result from the Loan
requested thereby, which, with the giving of notice or the passage of time or both, would constitute an Event of Default and no Event of Default shall be continuing. 

(viii) The Chapter 11 Trustee shall have timely delivered a Borrowing Notice related to such Loan, which was in form and
substance satisfactory to the Post-Petition Lender and consistent with the Budget. 
 (ix) The aggregate principal and amount
of all Post-Petition Loans extended shall not exceed the Stated Principal Amount. 
 (x) All information, approvals,
documents or other instruments as Post-Petition Lender may reasonably request shall have been received by Post-Petition Lender, and is customary for post-petition lenders or plan sponsors to request. 

2. Interest: Payments. 

(a) The Loans shall bear interest on the unpaid principal amount thereof plus all obligations owing to, and rights of, the Lender pursuant to
the Post-Petition Note, including without limitation, all interest, fees, and costs accruing thereon (collectively, the “Post-Petition Obligations”) from the date hereof (the “Effective Date”) to and including the
Maturity Date (defined below), at a fixed rate per annum equal to nine percent (9%), calculated on the basis of a 360-day year for the actual number of days elapsed. 

(b) Accrued, unpaid interest on the Loans shall be compounded on the last day of each calendar month. After the Maturity Date and/or after the
occurrence and during the continuance of an Event of Default (defined below), the Post-Petition Obligations shall bear interest at a rate equal to the interest rate set forth in subsection 2(a) above plus two percent (2%) per annum, calculated on
the basis of a 360-day year for the actual number of days elapsed (the “Default Rate”). 
 (c) Interest shall be payable,
in cash, upon prepayment of any portion of the Post-Petition Obligations, on the Maturity Date, and upon payment in full of the Loan. 
 (d)
Notwithstanding anything to the contrary set forth in this Section 2, if a court of competent jurisdiction determines in a Final Financing Order that the rate of interest payable hereunder exceeds the highest rate of interest permissible
under law (the “Maximum Lawful Rate”), then so long as the Maximum Lawful Rate would be so exceeded, the rate of interest payable hereunder shall be equal to the Maximum Lawful Rate. 

  
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 (f) Except as otherwise set forth herein or in the Post-Petition Financing Order, or as
otherwise contemplated by the terms of the ESW Bid, the Post-Petition Obligations shall be due and payable on the earlier to occur of (i) the date a plan of reorganization goes effective; (ii) September 30, 2016; (iii) upon acceleration of the
Post-Petition Note pursuant to the terms hereof; and (iv) the Termination Date (the “Maturity Date”). On the Maturity Date, the Post-Petition Lender’s obligation to provide Loans shall terminate. 

(g) This Note may be prepaid in whole or in part at any time without penalty or premium. The Post-Petition Lender may apply any such
prepayments and any payments made hereunder in any order of priority determined by the Post-Petition Lender in its exclusive judgment. 

3. Covenants Unless otherwise agreed to by the Post-Petition Lender in writing, the Chapter 11 Trustee, on behalf of the
Estate, covenants and agrees that he will: 
 (a) Use the proceeds of the Loans solely for operating working capital purposes and chapter 11
administrative costs in the amounts and otherwise in accordance with and for the purposes provided for in the Budget. Notwithstanding the then applicable Budget, the Chapter 11 Trustee may exceed the budgeted amount for any line item (other than
professional fees) during any weekly budget period by 10% (the “Permitted Variance”) excluding any timing difference resulting from the roll-forward of budgeted expenses from previously weekly periods that were unpaid and which may
rolled forward to subsequent periods; provided, that (i) the total amount of the Post-Petition Loans do not exceed the Stated Principal Amount, (ii) none of the proceeds of the Post-Petition Loans shall be used by any party-in-interest to take any
action or to otherwise assert any claims or causes of action against the Post-Petition Lender in any capacity (except for the purposes of enforcement of the ESW Bid, the Bid Approval Order, the Post-Petition Financing Order or this Note), and (iii)
the Permitted Variance shall not apply to the line items related to professional fees for any party-in-interest. 
 (b) Keep proper books of
record and account in which full, true and correct entries are made of all dealings and transactions in relation to its business and property and all legal requirements; and, upon the reasonable request of the Post-Petition Lender, provide copies
of, or access to, its books and records, and to discuss the business, operations, assets and financial and other condition of the Debtor with officers and employees thereof and with their independent certified public accountants. 

(c) Promptly give written notice to the Post-Petition Lender: (i) of the occurrence of any Default or Event of Default; (ii) of any (A)
default or event of default under any instrument or other material agreement, guarantee or document of the Chapter 11 Trustee or the Debtor or (B) litigation, investigation or proceeding which may exist at any time between the Chapter 11 Trustee or
the Debtor and any governmental authority; and (iii) of the commencement of any litigation or proceeding against the Debtor and/or the Estate for acts occurring after the Petition Date (A) in which more than $50,000 of the amount claimed is not
covered by insurance or (B) in which injunctive or similar relief is sought. 
 (d) Use the proceeds of the Loans solely for the purposes
permitted by this Post-Petition Note. 

  
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 (e) At all times, cause all of the Collateral (defined below) to be subject to a first
priority perfected security interest in favor of the Post-Petition Lender in accordance with the Post-Petition Financing Order, subject only to the Carve Out and the Permitted Liens. 

(f) Promptly, from time to time, deliver such other information regarding the operations, business affairs and financial condition of the
Debtor and the Estate as the Post-Petition Lender may request. 
 (g) If reasonably practicable, at least two (2) business days prior to the
date when the Chapter 11 Trustee intends to file any such pleading, motion or other document (and, if not reasonably practicable, as soon as reasonably practicable), provide copies of all material pleadings, motions, applications, judicial
information, financial information and other documents to be filed by the Chapter 11 Trustee in the Chapter 11 Case which may impact the Post-Petition Lender or the Post-Petition Facility. 

(h) Promptly execute and deliver such documents, instruments and agreements, and take or cause to be taken such acts and actions, as the
Lender may reasonably request from time to time to carry out the intent of this Post-Petition Note and the Post-Petition Financing Order. 

(i) Not create, incur, assume or suffer to exist any indebtedness other than (i) indebtedness outstanding on the Effective Date; (ii)
indebtedness in connection with the Loans; (iii) indebtedness in respect of fees and expenses owed to professionals retained by the Estate or any official committee in the Chapter 11 Case up to the amounts set forth in the Budget; and (vi) subject
in all respects to the Budget, any ordinary course unsecured indebtedness of the Estate of the type ordinarily incurred in connection with a chapter 11 bankruptcy case. 

(j) Not create, incur, assume or suffer to exist any lien upon any of its assets, whether now owned or hereafter acquired, except for liens
that are permitted by the Post-Petition Financing Order. 
 (k) Not enter into any merger or consolidation or amalgamation or other change
of control transaction or engage in any type of business other than of the same general type now conducted by it. 
 (l) Not convey, sell,
lease, assign, transfer or otherwise dispose of any assets or property (including, without limitation, tax benefits), other than the sale of inventory or the licensing of intellectual property in the ordinary course of business. 

(m) Not make any advance, investment, acquisition, loan, extension of credit or capital contribution to, in or for the benefit of any person.

 (n) Subject in all respects to the Budget, not enter into any transaction, including, without limitation, any purchase, sale, lease or
exchange of property or the rendering of any service, with any affiliate. 
 (o) Not incur or apply to the Bankruptcy Court for authority to
incur, or suffer to exist, any indebtedness having the priority afforded by section 364(c) or (d) of the Bankruptcy Code (including any superpriority claims) other than the financing provided for under this Post-Petition Note, unless the Obligations
hereunder are to be irrevocably paid in full, in cash with the proceeds thereof. 

  
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 (p) Not limit, affect or modify, or apply to the Bankruptcy Court to limit, affect or modify
any of the rights of the Post-Petition Lender with respect to the Post-Petition Obligations, including rights with respect to Post-Petition Collateral and the priority thereof. 

(q) Except for the Carve Out, not incur, create, assume, suffer or permit any claim to exist or apply to the Bankruptcy Court for the
authority to incur, create, assume, suffer or permit any claim to exist against the Estate or any of its assets which is to be pari passu with, or senior to, the Post-Petition Obligations, unless the Post-Petition Obligations are being irrevocably
repaid in full, in cash with the proceeds thereof. 
 4. Event of Default. 

(a) Event of Default. Each of the following events shall constitute an “Event of Default”: 

 

	 	(i)	The Chapter 11 Trustee, on behalf of the Estate (A) fails to pay any payment (whether principal, interest, or otherwise) when such amount becomes due and payable under the Post-Petition Note or (B) defaults in the due
performance or observance of any other term, covenant, or agreement contained in the Post-Petition Note (and, if such default is capable of being remedied, it has not been remedied within the cure period set forth in the Post-Petition Note or, if no
such cure period is provided, it has not been remedied to the reasonable satisfaction of the Post-Petition Lender five (5) business days following the occurrence of such event of default); 

 

	 	(ii)	any representation, warranty, or statement made by the Chapter 11 Trustee, on behalf of the Estate, herein or in the Post-Petition Note or in any certificate delivered in connection with the Post-Petition Note shall
prove to be untrue in any material respect on the date on which made or deemed made;; 

  

	 	(iii)	the security interest granted to the Post-Petition Lender shall cease to be in full force and effect, or shall cease to create a perfected security interest in, and lien on, the Post-Petition Collateral purported to be
created thereby; 

  

	 	(iv)	the Post-Petition Note is, or becomes, invalid or ineffective or unenforceable against the Estate, in whole or in part, or Chapter 11 Trustee so asserts or at any time denies the liability or the Post-Petition
Obligations under the Post-Petition Note; 

  

	 	(v)	the Bankruptcy Court shall enter an order dismissing the Chapter 11 Case or converting it to a case under chapter 7 or any other chapter of the Bankruptcy Code, or appointing a responsible officer other than the
Chapter 11 Trustee, or appointing an examiner with enlarged powers relating to the operation of Debtor’s business (beyond those set forth in sections 1106(a)(3) or (4) of the Bankruptcy Code) under section 1106(b) of the Bankruptcy Code,
in each case, without the consent of the Post-Petition Lender; 

  
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	 	(vi)	the Bankruptcy Court shall enter an order granting relief from the automatic stay applicable under section 362 of the Bankruptcy Code authorizing an action by a lienholder (other the Post-Petition Lender) on assets of
the Debtor and/or the Estate, that the lienholder has a lien on, having an aggregate value in excess of $50,000; 

  

	 	(vii)	the Chapter 11 Trustee shall seek to, or shall support any other person’s motion to, disallow in whole or in part the Post-Petition Obligations or to challenge the validity, priority, or enforceability of the
Post-Petition Lender’s liens and superpriority claims hereunder; 

  

	 	(viii)	a Post-Petition Financing Order shall be entered in form and substance that is not acceptable to the Post-Petition Lender in its sole discretion or, from and after the date of entry thereof, any Post-Petition Financing
Order shall cease to be in full force and effect or shall have been vacated, stayed, reversed, modified or amended (or the Chapter 11 Trustee, on behalf of the Estate shall take any step to accomplish any of the foregoing) without the consent
of the Post-Petition Lender; 

  

	 	(ix)	the Chapter 11 Trustee, on behalf of the Estate, shall make any payments on any indebtedness which arose before the Petition Date other than as provided in the Budget or otherwise consented to by the Post-Petition
Lender; 

  

	 	(x)	the Chapter 11 Trustee, on behalf of the Estate, shall be in breach or shall fail to comply with the terms of the Interim Financing Order or the ESW Bid, in any material respect; 

 

	 	(xi)	the failure to obtain Orders from the Bankruptcy Court, acceptable in form and substance to the Post-Petition Lender, (a) approving the Disclosure Statement (as defined in the ESW Bid) on or before July 15, 2016
(or such later date to which Post-Petition Lender shall agree in writing), or (b) confirming the ESW Plan by August 30, 2016 (or such later date to which Post-Petition Lender shall agree in writing), subject only to the Bankruptcy Court’s
docket; 

  

	 	(xii)	the occurrence of the Maturity Date; 

  

	 	(xiii)	the Interim Financing Order is stayed, reversed, vacated, amended or otherwise modified in any respect without the prior written consent of the Post-Petition Lender (which consent may be withheld in its sole
discretion); 

  

	 	(xiv)	 one or more judgments or decrees shall be entered against the Estate involving in the aggregate a post-Petition
Date liability (not paid or fully 

  
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covered by insurance or otherwise considered permitted Indebtedness) of $50,000 or more, and all such judgments or decrees shall not have been vacated, discharged, stayed or bonded pending appeal
within the time required by the terms of such judgment; 

  

	 	(xv)	the Post-Petition Note or any other Post-Petition Document shall cease, for any reason, to be in full force and effect or the Chapter 11 Trustee, on behalf of the Estate, shall so assert in writing, or any such document
shall cease to be effective to grant a perfected lien on any material item of Post-Petition Collateral described therein with the priority purported to be created thereby; 

 

	 	(xvi)	the Chapter 11 Trustee, on behalf of the Estate, shall fail to provide all information, approvals, documents or other instruments as Post-Petition Lender may reasonably request, and is customary for post-petition
lenders or plan sponsors to request; 

  

	 	(xvii)	a plan of reorganization, liquidating plan or disclosure statement shall be filed by the Chapter 11 Trustee, on behalf of the Estate, that is inconsistent with the terms of the ESW Bid; 

 

	 	(xviii)	an application or motion shall be filed by the Chapter 11 Trustee, on behalf of the Estate, for the approval of post-petition financing from any party other than ESW, including financing that provides for super-priority
claims or priming liens on any of ESW’s collateral without ESW’s consent in writing in its sole and absolute discretion; or 

  

	 	(xix)	the Bankruptcy Court’s confirmation of a competing plan to that of ESW’s, or approval of any transaction for the sale or disposition of any of the Debtor’s assets other than that to ESW.

 (b) Upon written notice by the Post-Petition Lender of the occurrence of an Event of Default under subparagraphs
(4)(a)(i)-(xvi), above, and upon entry of the Supplemental Sale Order, ESW and the Chapter 11 Trustee shall consummate the ESW Asset Sale (as defined in the Bid Approval Order) pursuant to the ESW Asset Sale Process (as defined in the Bid Approval
Order).3 Upon the closing of the ESW Asset Sale, repayment of any and all outstanding Post-Petition Obligations (and any obligation of the Trustee or his successor or the Estate therefore) and all
Post-Petition Liens (as defined below) and Superpriority Claims shall be waived and released. The Post-Petition Lender shall continue to fund the Debtor’s operations, pursuant to the Budget, through the closing of the ESW Asset Sale.4 
  

	3 	In the event of the occurrence of the ESW Asset Sale Process, then upon entry of a Supplemental Sale Order (which shall be reasonably satisfactory in form and substance to ESW and the Trustee or his successor) (as
defined in the Bid Approval Order), after notice and a hearing, the Enhanced Deposit (as defined in the Bid Approval Order) shall be released from the Chapter 11 Trustee bank account to the Chapter 11 Trustee or his successor for the benefit of
the Debtor’s Estate in payment of the purchase price for the ESW Asset Sale, and repayment of any and all then-outstanding Post-Petition Obligations shall be waived and released. 

	4 	To the extent an event occurs which may be an Event of Default, but Post-Petition Lender does not provide notice, the Chapter 11 Trustee will continue with the restructuring process. 

  
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 (c) Upon the occurrence of an Event of Default under subparagraphs (4)(a)(xvii), (xviii) or
(xix), above and after ten (10) days’ written notice by the Post-Petition Lender to the Notice Parties (the “Default Notice Period”), the automatic stay shall terminate, and the Post-Petition Lender shall be permitted to
exercise any remedies permitted by law, including any of the following actions, unless the Court determines during the Default Notice Period that an Event of Default has not occurred: 

 

	 	(i)	declare all or any portion of the outstanding Post-Petition Obligations due and payable, whereupon the same shall become, forthwith due and payable without presentment, demand, protest or notice of any kind, all of
which are hereby waived by the Chapter 11 Trustee, on behalf of the Estate; 

  

	 	(ii)	enforce all liens and security interests in the Post-Petition Collateral; 

  

	 	(iii)	institute proceedings to enforce payment of such Post-Petition Obligations; 

  

	 	(iv)	terminate the obligation of the Post-Petition Lender to make Loans; and 

  

	 	(v)	exercise any other remedies and take any other actions available to it at law, in equity, under the Post-Petition Note, the Bankruptcy Code, other applicable law or pursuant to this Post-Petition Financing Order.

 provided however that the Post-Petition Lender shall continue to fund the Debtor’s operations, pursuant to the Budget, through
the Default Notice Period. 
 (d) Subject to paragraph 4(c) above, if any Event of Default under subparagraphs 4(a)(xvii), (xviii) or (xix)
shall occur and be continuing, the Post-Petition Lender may exercise in addition to all other rights and remedies granted to it in this Post-Petition Note and the Post-Petition Financing Order, all rights and remedies of a secured party under the
UCC (as defined below) or other applicable law. Without limiting the generality of the foregoing, the Chapter 11 Trustee, on behalf of the Estate expressly agrees that in any such event the Post-Petition Lender, without demand of performance or
other demand, advertisement or notice of any kind (except the notice required by the Post-Petition Financing Order or the notice specified below of time and place of public or private sale) to or upon the Chapter 11 Trustee, on behalf of the Estate,
or any other person (all and each of which demands, advertisements and/or notices (except the notice required by the Post-Petition Financing Order or the notice specified below of time and place of public or private sale) are hereby expressly waived
to the maximum extent permitted by the UCC and other applicable law), may forthwith collect, receive, appropriate and realize upon the Collateral, or any part thereof, and/or may forthwith sell, lease, assign, give an option or options to purchase,
or sell or otherwise dispose of and deliver said Collateral (or contract to do 

  
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 so), or any part thereof, in one or more parcels at public or private sale or sales, at any exchange or
broker’s board or at any of the Post-Petition Lender’s offices or elsewhere at such prices as it may deem best, for cash or on credit or for future delivery without assumption of any credit risk. The Post-Petition Lender shall have the
right upon any such public sale or sales to purchase for cash or by credit bidding all or a part of the Obligations the whole or any part of said Collateral so sold, free of any right or equity of redemption, which equity of redemption the Chapter
11 Trustee, on behalf of the Estate, hereby releases. The Chapter 11 Trustee, on behalf of the Estate further agrees, at the Post-Petition Lender’s request, to assemble the Collateral constituting movable tangible personal property make it
available to the Post-Petition Lender at places which the Post-Petition Lender shall reasonably select. The Post-Petition Lender shall apply the proceeds of any such collection, recovery, receipt, appropriation, realization or sale to the
Post-Petition Obligations in the order reasonably deemed appropriate by the Post-Petition Lender, the Estate remaining liable for any deficiency remaining unpaid after such application, and only after so paying over such net proceeds and after the
payment by the Lender of any other amount required by any provision of law, including section 9-504(1)(c) of the UCC, shall the Post-Petition Lender account for and pay over the surplus, if any, to the Chapter 11 Trustee, on behalf of the Estate. To
the maximum extent permitted by applicable law, the Chapter 11 Trustee, on behalf of the Estate, waives all claims, damages, and demands against the Post-Petition Lender arising out of the repossession, retention or sale of the Post-Petition
Collateral except such as arise out of the gross negligence or willful misconduct of the Post-Petition Lender. The Chapter 11 Trustee, on behalf of the Estate, agrees that the Post-Petition Lender need not give more than five (5) days’ notice
to the Chapter 11 Trustee (which notification may run concurrently with any notice require when the Post-Petition Financing Order) shall be deemed given when mailed, electronically delivered or delivered on an overnight basis, postage prepaid,
addressed to the Chapter 11 Trustee at the address set forth below) of the time and place of any public sale or of the time after which a private sale may take place and that such notice is reasonable notification of such matters. The Estate shall
remain liable for any deficiency if the proceeds of any sale or disposition of the Post-Petition Collateral are insufficient to pay all amounts to which the Post-Petition Lender is entitled. 

(e) Subject to paragraph 4(c) above, if any Event of Default under subparagraphs 4(a)(xvii), (xviii) or (xix) shall occur, except as otherwise
expressly provided herein and in the Post-Petition Financing Order, the Chapter 11 Trustee, on behalf of the Estate, hereby waives presentment, demand, protest or any notice (to the maximum extent permitted by applicable law) of any kind in
connection with this Post-Petition Note or any Collateral. The Estate shall also pay Post-Petition Lender’s costs of collection if any Post-Petition Obligations are not paid when due, including without limitation court costs, and collection
expenses, and reasonable out-of-pocket attorneys’ fees and other expenses which Post-Petition Lender may incur or pay in the prosecution or defense of its rights hereunder, whether in judicial proceedings, including bankruptcy court and
appellate proceedings, or whether out of Court. 
 5. Security. 

(a) To induce the Post-Petition Lender to make the Loans, the Chapter 11 Trustee, on behalf of the Estate, hereby grants to the
Post-Petition Lender, as security for the full and prompt payment when due (whether at stated maturity, by acceleration or otherwise) of the Post-Petition Obligations, a continuing first priority lien and security interest (subject only to (1) the
Carve-Out, 

  
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(2) Permitted Liens, and (3) the Chime Proceeds disbursed as the Chapter 7 Payment (as defined in the Post-Petition Financing Order); provided that the Post-Petition Lender shall be granted a
continuing first priority lien and security interest over any and all Chime Proceeds remaining after payment of the Chapter 7 Payment) in and to all assets of the Debtor and the Estate, including all of the following presently existing or hereafter
acquired property, whether owned, leased or otherwise possessed, to which the Estate now has or at any time in the future may acquire any right, title or interest (capitalized terms used in clause (i) through (xix) shall have the meanings provided
for such term in the Uniform Commercial Code in effect on the date hereof in the State of Delaware (the “UCC”)): 
 (i) all
Accounts; 
 (ii) all Chattel Paper; 

(iii) all Deposit Accounts, including any monies or other property held therein; 

(iv) all Documents; 
 (v) all
Equipment; 
 (vi) all General Intangibles, including all intellectual property, including any trademarks or tradenames, and any licenses;

 (vii) all Instruments; 

(viii) all Inventory; 
 (ix)
all Investment Property; 
 (x) all Letter of Credit Rights; 

(xi) all real property; 
 (xii)
all motor vehicles; 
 (xiii) all Commercial Tort Claims; 

(xiv) all books and records pertaining to the Debtor, its business and any property described herein; 

(xv) all other goods and personal property of the Debtor and/or the Estate, whether tangible or intangible, wherever located, including money,
letters of credit and all rights of payment or performance under letters of credit; 
 (xvi) to the extent not otherwise included, all
monies and other property of any kind which is received by the Estate in connection with any refunds with respect to taxes, assessments and other governmental charges; 

(xvii) all insurance claims; and 

(xviii) to the extent not otherwise included, all Proceeds of each of the foregoing and all accessions to, substitutions and replacements for,
and rents, profits and products of, each of the foregoing, and any proceeds of insurance, indemnity, warranty or guaranty payable to the Estate from time to time with respect to any of the foregoing. 

  
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 (b) The granting clause herein is intended to supplement (not supersede) that which is
provided for in the Post-Petition Financing Order and the Loans and any other indebtedness or obligations, contingent or absolute (including, without limitation, the principal thereof, interest thereon, and costs and expenses owing in connection
therewith) which may now or from time to time hereafter be owing by the Estate to the Post-Petition Lender under the Post-Petition Note shall be secured as set forth herein, in the Post-Petition Financing Order. 

(c) The Post-Petition Financing Order provides for the perfection, maintenance, protection, and enforcement of the Post-Petition Lender’s
security interest in the Post-Petition Collateral. Upon the request of the Post-Petition Lender, the Chapter 11 Trustee, on behalf of the Estate, shall deliver to the Post-Petition Lender those Post-Petition Documents necessary or desirable to
perfect the Post-Petition Lender’s lien, including in letters of credit on which the Debtor is named as beneficiary and all acceptances issued in connection therewith. The Chapter 11 Trustee shall take such other reasonable steps as are
deemed necessary or desirable to maintain the Post-Petition Lender’s security interest in the Collateral. 
 (d) The Chapter 11
Trustee, on behalf of the Estate, hereby authorizes the Post-Petition Lender to execute and file financing statements or continuation statements, and amendments thereto, on the Chapter 11 Trustee’s behalf covering the Collateral. The Post-Petition Lender may file one or more financing statements disclosing the Post-Petition Lender’s security interest under this Post-Petition Note without the signature of the Chapter 11 Trustee appearing
thereon. The Post-Petition Lender shall pay the costs of, or incidental to, any recording or filing of any financing statements concerning the Post-Petition Collateral. The Chapter 11 Trustee agrees that a carbon, photographic, photostatic,
or other reproduction of this Post-Petition Note or of a financing statement is sufficient as a financing statement. 

(e) Except as otherwise provided for in this Post-Petition Note or in any Post-Petition Financing Order, or as otherwise contemplated by the
terms of the ESW Bid, until all Post-Petition Obligations have been irrevocable fully satisfied in cash and the Post-Petition Lender shall have no further obligation to make any Loans hereunder, the
Post-Petition Lender’s security interest in the Post-Petition Collateral, and all proceeds and products thereof, shall continue in full force and effect. 

(f) Notwithstanding the preceding paragraphs, or any failure on the part of the Chapter 11 Trustee to take any of the actions set forth
therein, the liens and security interests granted herein shall be deemed valid, enforceable and perfected by entry of the final Post-Petition Financing Order. No financing statement, notice of lien, mortgage,
deed of trust or similar instrument in any jurisdiction or filing office need be filed or any other action taken in order to validate and perfect the liens and security interests granted by or pursuant to this
Post-Petition Note and the Post-Petition Financing Order. 
 (g) Except as specifically provided for
in the Post-Petition Financing Order with respect to the Permitted Liens, the priority of the Post-Petition Lender’s liens on the Post-Petition Collateral shall be senior to all liens existing as of the Petition Date, and for so long as any Post-Petition Obligations shall be outstanding. 

  
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 (h) Upon entry of, subject to and in accordance with the Post-Petition Financing Order, the
Post-Petition Obligations of the Estate hereunder and under the other Post-Petition Documents and the Post-Petition Financing Order, shall at all times constitute allowed superpriority claims pursuant to section 364(c)(1) of the Bankruptcy Code.

 (i) It is expressly agreed by the Chapter 11 Trustee, on behalf of the Estate, that, anything herein to the contrary notwithstanding, the
Estate shall remain liable under its post-petition contractual obligations to observe and perform all the conditions and obligations to be observed and performed by it thereunder, and the Post-Petition Lender
shall not have any obligation or liability under any contractual obligations by reason of or arising out of this Post-Petition Note unless otherwise agreed to in writing by the Post-Petition Lender, and the Post-Petition Lender shall not be required or obligated in any manner to perform or fulfill any of the obligations of the Estate under or pursuant to any contractual obligations, or to make any payment, or to make
any inquiry as to the nature or the sufficiency of any payment received by it or the sufficiency of any performance by any party under any contractual obligations, or to present or file any claim, or to take any action to collect or enforce any
performance or the payment of any amounts which may have been assigned to it or to which it may be entitled at any time or times. 
 (j) The
Chapter 11 Trustee hereby appoints Post-Petition Lender, or any other person whom Post-Petition Lender may designate, as the Chapter 11 Trustee’s attorney-in-fact (such appointment being coupled with an interest and being irrevocable until
Post-Petition Lender’s liens and claims shall have been satisfied), at any time after (a) the occurrence of an Event of Default specified in subparagraphs 4(a)(xvii), (xviii) or (xix), above, (b) the expiration of the Default Notice Period, or
(c) termination of the automatic stay (x) to do any act which Chapter 11 Trustee is obligated to do hereunder, or (y) to exercise any of the rights and remedies available under the UCC or other applicable law to a secured party with a lien
having the same priority as the Post-Petition Lender’s lien on the Collateral (and all acts of such attorney in fact or designee taken pursuant to this section are hereby ratified and approved by the Chapter 11 Trustee, on behalf of the Estate,
and said attorney or designee shall not be liable for any acts or omissions nor for any error of judgment or mistake of fact or law, except for gross negligence or willful misconduct); provided, however, that Lender shall provide prior or
contemporaneous telephonic and electronic notice to the Chapter 11 Trustee and any creditor entitled to notice with respect to any affected Post-Petition Collateral of the exercise of any or all of the stated rights and powers. 

6. Indemnification. 

(a) The Chapter 11 Trustee, on behalf of the Estate, shall indemnify and hold harmless the Post-Petition Lender and its respective affiliates,
and each such person’s respective officers, directors, employees, attorneys, agents and representatives (each, an “Indemnified Person”), from and against any and all suits, actions, proceedings, claims, damages, losses,
liabilities and expenses (including reasonable attorneys’ fees and disbursements and other costs of investigation or defense, including those incurred upon any appeal) that may be instituted or asserted against or incurred by any such
Indemnified Person as the result of the Post-Petition Obligations, Post-Petition Liens, and credit having been extended, suspended or terminated under this Post-Petition Note and the other Post-Petition Documents and the administration or
encumbrance of such credit, and in connection with or arising out of the transactions contemplated hereunder and thereunder and any actions or failures to act in connection therewith, including any and all legal costs and expenses arising out of or
incurred in connection 

  
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with disputes between or among any parties to any of the Post-Petition Documents (collectively, “Indemnified Liabilities”); provided that Chapter 11 Trustee, on behalf of the
Estate, shall not be liable for any indemnification to an Indemnified Person to the extent that any such suit, action, proceeding, claim, damage, loss, liability or expense results from that Indemnified Person’s gross negligence or willful
misconduct as determined by a court of competent jurisdiction. No Indemnified Person shall be responsible or liable to any other party to the Post-Petition Documents, any successor, assignee or third-party beneficiary of such person or any other
person asserting claims derivatively through such party, for indirect, punitive, exemplary or consequential damages which may be alleged as a result of the Post-Petition Obligations and credit having been extended, suspended or terminated under any
Post-Petition Document or as a result of any other transaction contemplated hereunder or thereunder. So long as a confirmation order confirming the ESW Plan, or the Supplemental Sale Order (as defined in the Bid Approval Order) provide for Estate
releases of the Indemnified Persons, reasonably satisfactory to ESW, the Indemnified Liabilities shall be Post-Petition Obligations and shall be treated in the same manner as all other Post-Petition Obligations under this Note and the Post-Petition
Financing Order. 
 7. Payment under Plan of Reorganization. 

(a) As detailed in the ESW Bid and the Bid Approval Order, upon consummation of the ESW Plan, all Post-Petition Obligations shall either be
(a) converted to equity of the reorganized debtor, or (b) paid by the Plan Sponsor (as defined in the ESW Bid) by an increase in the Consideration. In the event that the ESW Plan is consummated, in no event will the Post-Petition Obligations be paid
from the amounts owed to the Debtor’s estate under the ESW Bid, and the liens and superpriority claims granted hereby and by the Post-Petition Financing Order shall be waived and released. 

8. Miscellaneous. 

(a) Subject to paragraph 4(c) above, if any Event of Default under subparagraphs 4(a)(xvii), (xviii) or (xix) shall occur, the Chapter 11
Trustee, on behalf of the Estate, hereby waives presentment, demand (except as expressly required herein), notice, protest and all other demands or notices in connection with the deliver, acceptance, performance, default or enforcement of this
Note. No course of action or delay or omission of Post-Petition Lender in exercising any right or remedy hereunder or under any other agreement or undertaking securing or related hereto shall constitute or be deemed to be a waiver of any such right
or remedy, and a waiver on the one occasion shall not operate as a bar to or waiver of any such right or remedy on any future occasion. The rights and remedies of Post-Petition Lender as provided herein shall be cumulative and concurrent and may be
pursued singularly, successively or together at the sole discretion of Post-Petition Lender, and may be exercised as often as occasion therefor shall occur, and the failure to exercise any such right or remedy shall in no event be construed as a
waiver or release of the same. 
 (b) Subject to and limited by the Post-Petition Financing Order, the Chapter 11 Trustee, on behalf of the
Estate, agrees to pay or reimburse the Post-Petition Lender for all of its costs and expenses incurred in connection with the collection or enforcement of or preservation of any rights under this Post-Petition Note, including, without limitation,
the fees and disbursements of counsel for the Post-Petition Lender, including attorneys’ fees out of court, in trial, on appeal, in bankruptcy proceedings, or otherwise. 

  
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 (c) This Post-Petition Note shall be binding upon and inure to the benefit of the Trustee,
the Estate and Post-Petition Lender and their respective administrators, personal representatives, legal representatives, heirs, successors and assigns, except that the Chapter 11 Trustee, on behalf of the Estate, shall not assign or transfer
any of its rights and/or obligations hereunder, and any such assignment or transfer purported to be made by Chapter 11 Trustee shall be null and void. Post-Petition Lender may at any time transfer or assign (or grant a participation in) any or all
of its rights and/or obligations hereunder without the consent of the Chapter 11 Trustee. If and to the extent applicable, such assignee must reasonably assure the Chapter 11 Trustee that it can perform under the ESW Bid, and this Post-Petition
Note. 
 (d) If any provision of this Post-Petition Note is invalid, illegal, or unenforceable, the balance of this Post-Petition Note shall
remain in effect, and if any provision is inapplicable to any person or circumstance, it shall nevertheless remain applicable to all other persons and circumstances. 

(e) This Post-Petition Note is subject to the ESW Bid and the Bid Approval Order. 

(f) This Post-Petition Note shall be governed by and construed in all respects under the laws of the State of Delaware, without reference to
its conflict of laws rules or principles. Each of the parties submits to the exclusive jurisdiction of the Bankruptcy Court for the District of Delaware or (if the Bankruptcy Court lacks or declines jurisdiction) any state or federal court
sitting in the State of Delaware, in any action or proceeding arising out of or relating to this Note, and each party agrees that all claims in respect of the action or proceeding may be heard and determined in any such court and agrees not to bring
any action or proceeding arising out of or relating to this Note in any other court. Each of the parties waives any defense of inconvenient forum to the maintenance of any action or proceeding so brought and waives any bond, surety or other security
that might be required of any other party with respect thereto. Each party agrees that service of summons and complaint or any other process that might be served in any action or proceeding may be made on such party by sending or delivering a copy
of the process to the party to be served at the address of the party and in the manner provided for the giving of notices in Section 8(h). Each party agrees that a final, non-appealable judgment in any action or
proceeding so brought shall be conclusive and may be enforced by suit on the judgment or in any other manner provided by law. 
 (g) THE
POST-PETITION LENDER AND THE CHAPTER 11 TRUSTEE HEREBY KNOWINGLY VOLUNTARILY, INTENTIONALLY WAIVE THE RIGHT EACH MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION BASED HEREIN, OR ARISING OUT OF UNDER OR IN CONNECTION WITH THIS
POST-PETITION NOTE. 
 (h) The Chapter 11 Trustee, at the expense of the Estate, which shall be provided for in the Budget, shall take
any lawful actions and execute, deliver, file and register any documents which Post-Petition Lender may in its discretion reasonably necessary or appropriate in order to further the purposes of this Post-Petition Note. 

(i) Notices hereunder should be sent to: 

If to the Post-Petition Lender: 

Haynes and Boone, LLP 
 1221
McKinney Street, Suite 2100 
 Houston, Texas 77010 

Attention: Charles A. Beckham, Jr. 

Email: charles.beckham@haynesboone.com 

Fax: 713-236-5638 

  
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 and 

Haynes and Boone, LLP 
 30
Rockefeller Plaza, 26th Floor 
 New York, NY 10112 

Attention: Trevor R. Hoffmann 

Email: trevor.hoffmann@haynesboone.com 

Fax: 212-884-9558 
 If to Chapter
11 Trustee: 
 David W. Carickhoff 

300 Delaware Avenue, Suite 1100 

Wilmington, DE 19801 
 Email:
Dcarickhoff@acherlaw.com 
 Additional copy to: 

Archer & Greiner, P.C. 
 300
Delaware Avenue, Suite 1100 
 Wilmington, DE 19801 

Attention: Alan M. Root 
 Email:
aroot@acherlaw.com 
 or to such other address as any party hereto shall notify the other parties hereto (as provided above) from time to time. 

[Signature page is next page] 

  
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 IN WITNESS WHEREOF, the Chapter 11 Trustee has executed this Post-Petition Note as of
the date first written above. 
  

	
	BORROWER
	
	Wave Systems Corp.
	
	David W. Carickhoff, solely in his capacity as Chapter 11 Trustee of Wave Systems Corp. and solely on behalf of the estate thereofEX-10.2

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 Exhibit
10.2 
 IN THE UNITED STATES BANKRUPTCY COURT 

FOR THE DISTRICT OF DELAWARE 
  

					
	In re:	  	§	  	
		  	§	  	
	WAVE SYSTEMS CORP.,	  	§	  	Case No. 16-10284
		  	§	  	
	                                  Debtor.	  	§	  	Chapter 11
		  	§	  	

  
  

PLAN OF REORGANIZATION OF THE DEBTOR 

DATED JUNE 17, 2016 
  

 
 Proponents of the Plan 

 

			
	Alan M. Root (No. 5427)	  	HAYNES AND BOONE, LLP
	ARCHER & GREINER, P.C.	  	Trevor R. Hoffmann (NY Bar No. 24048806)
	300 Delaware Avenue, Suite 1100	  	30 Rockefeller Plaza, 26th Floor
	Wilmington, DE 19801	  	New York, NY 1011
	Email aroot@archerlaw.com	  	Email: trevor.hoffmann@haynesboone.com

 -and- 
 Stephen
M. Packman 
 ARCHER & GREINER, P.C 
 1650 Market
Street, 32nd Floor 
 Philadelphia, PA 19103-7393 

Email: spackman@archerlaw.com 
  

			
	COUNSEL TO CHAPTER 11 TRUSTEE	  	
	FOR THE DEBTOR	  	COUNSEL TO PLAN SPONSOR

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 TABLE OF CONTENTS 

 

							
	 	 	 	  	Page	 
	 ARTICLE I SUMMARY OF THE PLAN
	  	 	1	  
		
	 ARTICLE II DEFINITIONS, RULES OF INTERPRETATION, AND CONSTRUCTION OF TERMS
	  	 	1	  
		
	 ARTICLE III DESIGNATION OF CLAIMS AND EQUITY INTERESTS
	  	 	2	  
			
	 3.1
	 	 Summary
	  	 	2	  
			
	 3.2
	 	 Identification of Classes
	  	 	2	  
			
	 3.3
	 	 Unimpaired Classes
	  	 	3	  
			
	 3.4
	 	 Impaired Classes/Entitled to Vote
	  	 	3	  
			
	 3.5
	 	 Impaired Classes/Deemed to Reject
	  	 	3	  
			
	 3.6
	 	 Elimination of Classes for Voting Purposes
	  	 	3	  
			
	 3.7
	 	 Controversy Concerning Classification, Impairment or Voting Rights
	  	 	3	  
		
	 ARTICLE IV TREATMENT OF UNCLASSIFIED CLAIMS
	  	 	3	  
			
	 4.1
	 	 Administrative Claims
	  	 	3	  
			
	 4.2
	 	 Allowed Priority Tax Claims
	  	 	6	  
			
	 4.3
	 	 Ordinary Course Liabilities
	  	 	6	  
		
	 ARTICLE V CLASSIFICATION AND TREATMENT OF CLASSIFIED CLAIMS AND EQUITY
INTERESTS
	  	 	7	  
			
	 5.1
	 	 Treatment of Allowed Secured Claims (Class 1)
	  	 	7	  
			
	 5.2
	 	 Treatment of Allowed Priority Unsecured Non-Tax Claims (Class 2)
	  	 	7	  
			
	 5.3
	 	 Treatment of Allowed General Unsecured Claims (Class 3)
	  	 	8	  
			
	 5.4
	 	 Treatment of Allowed Intercompany Claims (Class 4)
	  	 	8	  
			
	 5.5
	 	 Treatment of Allowed Equity Interests (Class 5)
	  	 	8	  
		
	 ARTICLE VI MEANS FOR IMPLEMENTATION OF THE PLAN
	  	 	9	  
			
	 6.1
	 	 Continued Corporate Existence
	  	 	9	  
			
	 6.2
	 	 Management and Board of Directors and Discharge of Chapter 11 Trustee
	  	 	9	  
			
	 6.3
	 	 Arrangements with the Distribution Trustee
	  	 	9	  
			
	 6.4
	 	 The Closing
	  	 	9	  
			
	 6.5
	 	 Tax Treatment of the Distribution Trust
	  	 	11	  
			
	 6.6
	 	 Right to Enforce, Compromise, or Adjust Distribution Trust Assets
	  	 	12	  
			
	 6.7
	 	 Preservation of Rights of Action
	  	 	12	  

  
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	 ARTICLE VII PROVISIONS GOVERNING RESOLUTION OF CLAIMS AND DISTRIBUTIONS OF PROPERTY
UNDER THE PLAN
	  	 	13	  
			
	 7.1
	 	 Right to Object to Claims
	  	 	13	  
			
	 7.2
	 	 Deadline for Objecting to Claims
	  	 	13	  
			
	 7.3
	 	 Deadline for Responding to Claim Objections
	  	 	13	  
			
	 7.4
	 	 Right to Request Estimation of Claims
	  	 	13	  
			
	 7.5
	 	 Distribution Procedures Regarding Allowed Claims
	  	 	14	  
			
	 7.6
	 	 Procedures Regarding Distributions from the Distribution Trust
	  	 	16	  
		
	 ARTICLE VIII EXECUTORY CONTRACTS
	  	 	16	  
			
	 8.1
	 	 Assumption of Executory Contracts
	  	 	16	  
			
	 8.2
	 	 Rejection of Executory Contracts
	  	 	16	  
			
	 8.3
	 	 Procedures Related to Assumption of Executory Contracts
	  	 	17	  
			
	 8.4
	 	 Rejection Claim Bar Date
	  	 	19	  
			
	 8.5
	 	 Indemnification Obligations
	  	 	19	  
			
	 8.6
	 	 Federal Government Rights
	  	 	19	  
		
	 ARTICLE IX EFFECT OF REJECTION BY ONE OR MORE CLASSES
	  	 	19	  
			
	 9.1
	 	 Impaired Classes Entitled to Vote
	  	 	19	  
			
	 9.2
	 	 Acceptance by Class
	  	 	20	  
			
	 9.3
	 	 Reservation of Cramdown Rights
	  	 	20	  
		
	 ARTICLE X EFFECT OF CONFIRMATION
	  	 	20	  
			
	 10.1
	 	 Legally Binding Effect
	  	 	20	  
			
	 10.2
	 	 Vesting of Property of Debtor in Reorganized Debtor
	  	 	20	  
		
	 ARTICLE XI INJUNCTIONS, RELEASES, AND DISCHARGE
	  	 	20	  
			
	 11.1
	 	 Discharge of the Debtor
	  	 	20	  
			
	 11.2
	 	 Discharge Injunction
	  	 	21	  
			
	 11.3
	 	 Exculpation and Limitation of Liability
	  	 	21	  
			
	 11.4
	 	 Releases by the Debtor
	  	 	22	  
			
	 11.5
	 	 Releases by Third Parties
	  	 	23	  
		
	 ARTICLE XII RETENTION OF JURISDICTION
	  	 	24	  
			
	 12.1
	 	 Exclusive Bankruptcy Court Jurisdiction
	  	 	24	  
			
	 12.2
	 	 Limitation on Jurisdiction
	  	 	25	  

  
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	 ARTICLE XIII MISCELLANEOUS PROVISIONS
	  	 	26	  
			
	 13.1
	 	 Conditions to Confirmation
	  	 	26	  
			
	 13.2
	 	 Conditions to Effectiveness
	  	 	26	  
			
	 13.3
	 	 Exemption from Transfer Taxes
	  	 	26	  
			
	 13.4
	 	 Securities Exemption
	  	 	27	  
			
	 13.5
	 	 Defects, Omissions and Amendments of the Plan
	  	 	27	  
			
	 13.6
	 	 Withdrawal of Plan
	  	 	28	  
			
	 13.7
	 	 Due Authorization By Holders of Claims and Equity Interests
	  	 	28	  
			
	 13.8
	 	 Filing of Additional Documentation
	  	 	28	  
			
	 13.9
	 	 Governing Law
	  	 	28	  
			
	 13.10
	 	 Successors and Assigns
	  	 	28	  
			
	 13.11
	 	 Transfer of Claims and Equity Interests
	  	 	28	  
			
	 13.12
	 	 Notices
	  	 	29	  
			
	 13.13
	 	 U.S. Trustee Fees
	  	 	30	  
			
	 13.14
	 	 Implementation
	  	 	31	  
			
	 13.15
	 	 No Admissions
	  	 	31	  
		
	 ARTICLE XIV SUBSTANTIAL CONSUMMATION
	  	 	31	  
			
	 14.1
	 	 Substantial Consummation
	  	 	31	  
			
	 14.2
	 	 Final Decree
	  	 	32	  

  
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 EXHIBITS TO THE PLAN 

 

					
	 Glossary of Defined Terms
	  	 	Exhibit A	  
	 Schedule of Assumed Contracts and Unexpired Leases
	  	 	Exhibit B	  

  
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 David W. Carickhoff, the Chapter 11 Trustee of the Debtor, Wave Systems Corp., in the
above-referenced Bankruptcy Case, and ESW Capital, LLC, in its capacity as the Plan Sponsor, jointly propose the Plan of Reorganization of the Debtor dated June 17, 2016. Reference is made to the Disclosure Statement Pursuant to 11 U.S.C.
§ 1125 in Support of the Plan of Reorganization of the Debtor dated June 17, 2016 for a discussion of the Debtor’s history, business, property and results of operations, and for a summary of the Plan and certain related matters. 

All are encouraged to read the Plan and the Disclosure Statement in their entirety before voting to accept or reject the Plan. No materials,
other than the Disclosure Statement and any exhibits and schedules attached thereto or referenced therein, have been approved by the Proponents for use in soliciting acceptances or rejections of the Plan. 

For avoidance of doubt, the Plan applies and preserves the maximum global jurisdiction possible under applicable U.S. law, including, without
limitation, over the assets of the Debtor wherever located. The Plan is also consistent with and implements the decisions of the Bankruptcy Court that are described in the Disclosure Statement. 

ARTICLE I 
 SUMMARY OF
THE PLAN 
 An overview of the Plan is set forth in the Disclosure Statement. Generally, the Plan provides for (1) the
reorganization of the Debtor by retiring, cancelling, extinguishing and/or discharging the Debtor’s prepetition Equity Interests and issuing New Equity to the Plan Sponsor and to the Post-Petition Lender, to the extent that it exercises the
Subscription Option, and (2) the distribution of Cash and rights to certain litigation recoveries to holders of Allowed Claims and Equity Interests in accordance with the priority scheme established by the Bankruptcy Code. 

The reorganization of the Debtor and its estate described herein will be implemented via (1) issuance of a portion of New Equity to ESW
Capital, LLC or an affiliate, in its capacity as the Plan Sponsor, in exchange for the Plan Consideration; (2) receipt of a portion of the New Equity by ESW Capital, LLC, in its capacity as Post-Petition Lender, pursuant to the Subscription
Option; (3) distribution of the Cash Consideration to the holders of Allowed Claims and Equity Interests; and (4) creation of the Distribution Trust to pursue certain avoidance claims and causes of action for the benefit holders of Allowed
Claims and Equity Interests. 
 ARTICLE II 

DEFINITIONS, RULES OF INTERPRETATION, AND CONSTRUCTION OF TERMS 

2.1 All capitalized terms not defined elsewhere in the Plan shall have the meanings assigned to them in the Glossary of Defined Terms
attached as Exhibit A to the Plan. Any capitalized term used in the Plan that is not defined herein has the meaning ascribed to that term in the Bankruptcy Code and/or Bankruptcy Rules. 

  
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 2.2 For purposes of the Plan, any reference in the Plan to an existing document or
exhibit filed or to be filed means that document or exhibit as it may have been or may be amended, supplemented, or otherwise modified. 

2.3 The words “herein,” “hereof” and “hereunder” and other words of similar import refer to the Plan as a
whole and not to any particular section, subsection or clause contained in the Plan, unless the context requires otherwise. Whenever from the context it appears appropriate, each term stated in either the singular or the plural includes the singular
and the plural, and pronouns stated in the masculine, feminine or neuter gender include the masculine, feminine and the neuter. The section headings contained in the Plan are for reference purposes only and shall not affect in any way the meaning or
interpretation of the Plan. 
 2.4 Captions and headings to articles, sections and exhibits are inserted for convenience of reference
only and are not intended to be part of or to affect the interpretation of the Plan. 
 2.5 The rules of construction set forth in
section 102 of the Bankruptcy Code shall apply. 
 2.6 In computing any period of time prescribed or allowed by the Plan, the
provisions of Bankruptcy Rule 9006(a) shall apply. 
 ARTICLE III 

DESIGNATION OF CLAIMS AND EQUITY INTERESTS 

3.1 Summary 
 Pursuant to
section 1122 of the Bankruptcy Code, a Claim or Equity Interest is placed in a particular Class for purposes of voting on the Plan and receiving Distributions under the Plan only to the extent (i) the Claim or Equity Interest qualifies within
the description of that Class; (ii) the Claim or Equity Interest is an Allowed Claim or Allowed Equity Interest in that Class, and is classified in another Class or Classes to the extent that any remainder of the Claim or Equity Interest
qualifies within the description of such other Class or Classes; and (iii) the Claim or Equity Interest has not been paid, released, or otherwise compromised before the Effective Date. A Claim or Equity Interest which is not an Allowed Claim or
Allowed Equity Interest, including a Disputed Claim, is not in any Class, and, notwithstanding anything to the contrary contained in the Plan, no Distribution shall be made on account of any Claim or Equity Interest which is not an Allowed Claim or
Allowed Equity Interest. In accordance with section 1123(a)(1) of the Bankruptcy Code, Administrative Claims, Professional Compensation Claims, and Priority Tax Claims are not classified under the Plan and are excluded from the following Classes.

 3.2 Identification of Classes 

The following is a designation of the classes of Claims and Equity Interests under the Plan. 

  
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 Class 1: Secured Claims 

Class 2: Priority Unsecured Non-Tax Claims 

Class 3: General Unsecured Claims 

Class 4: Intercompany Claims 

Class 5: Equity Interests 

3.3 Unimpaired Classes 

Classes 1 and 2 are unimpaired under the Plan. Under section 1126(f) of the Bankruptcy Code, holders of Claims in Classes 1 and 2 are
conclusively presumed to have accepted the Plan and are therefore not entitled to vote to accept or reject the Plan. 
 3.4 Impaired
Classes/Entitled to Vote 
 Class 3 and Class 4 are impaired under the Plan. Holders of Allowed Claims in Class 3 and Class 4 are
entitled to vote to accept or reject the Plan. 
 3.5 Impaired Classes/Deemed to Reject 

Class 5 is impaired under the Plan but is deemed to reject the Plan. Therefore, Interest Holders in Class 5 are not entitled to vote to accept
or reject the Plan. 
 3.6 Elimination of Classes for Voting Purposes 

Any Class of Claims or Equity Interests that is not occupied as of the date of the commencement of the Confirmation Hearing by an Allowed
Claim, an Allowed Equity Interest, or a Claim or Equity Interest temporarily allowed under Rule 3018 of the Bankruptcy Rules shall be deemed deleted from the Plan for purposes of voting on acceptance or rejection of the Plan by such Class under
section 1129(a)(8) of the Bankruptcy Code. 
 3.7 Controversy Concerning Classification, Impairment or Voting Rights 

In the event a controversy or dispute should arise involving issues related to the classification, impairment or voting rights of any Creditor
or Interest Holder under the Plan, whether before or after the Confirmation Date, the Bankruptcy Court may, after notice and a hearing, determine such controversy. Without limiting the foregoing, the Bankruptcy Court may estimate for voting purposes
(i) the amount of any contingent or unliquidated Claim the fixing or liquidation of, as the case may be, would unduly delay the administration of the Bankruptcy Case and (ii) any right to payment arising from an equitable remedy for breach
of performance. 
 ARTICLE IV 

TREATMENT OF UNCLASSIFIED CLAIMS 

4.1 Administrative Claims 

(a) General: Except with regards to the Ordinary Course Liabilities, including Allowed Post-Petition Lender Financing Claims (the treatment of
which is described in Section 4.3 (below)), 

  
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subject to the bar date provisions herein, unless otherwise agreed to by the parties, each holder of an Allowed Administrative Claim shall receive, from the Cash Consideration, Cash equal to the
unpaid portion of such Allowed Administrative Claim within ten (10) days after the later of (a) the Effective Date, (b) the Allowance Date, or (c) such date as is mutually agreed upon by the Proponents and the holder of such
Claim. For the avoidance of doubt, it is contemplated that Professional Fee Claims which are provided for under the Budget shall be paid from Post-Petition Financing, not from the Cash Consideration. Non-Budgeted Professional Fee Claims include any
Chapter 7 or 11 Trustee Fee requests for compensation and any request for compensation filed by GrowthPoint Technology Partners, LLC in connection with the transactions contemplated hereunder, which claims, if and when Allowed, shall be paid in full
from the Cash Consideration. 
 (b) Payment of Statutory Fees: All fees payable pursuant to 28 U.S.C. § 1930 shall be paid in Cash
(subject to the Approved Budget, or otherwise with the Cash Consideration) equal to the amount of such Administrative Claim when due or no later than the Effective Date. Postpetition U.S. Trustee fees and post-confirmation reports shall be paid and
filed as required by 28 U.S.C. § 1930 until the Bankruptcy Case is closed, converted or dismissed, and failure to do either timely is a material default pursuant to section 1112 of the Bankruptcy Code. After confirmation, the Distribution
Trustee will file with the court and serve on the U.S. Trustee quarterly financial reports in a format prescribed by the U.S. Trustee, and the Distribution Trustee will pay post-confirmation quarterly fees to the U.S. Trustee until a final decree is
entered or the case is converted or dismissed as provided in 28 U.S.C. § 1930(a)(6). In no event will the Reorganized Debtor be responsible for any U.S. Trustee fees. 

(d) Bar Date for Administrative Claims: 

(i) General Provisions: Except as otherwise provided in this Article IV, requests for payment of Administrative Claims must be included within
an application (setting forth the amount of, and basis for, such Administrative Claims, together with documentary evidence) and Filed and served on respective counsel for the Chapter 11 Trustee and Plan Sponsor no later than ten (10) days after
the Confirmation Hearing or by such earlier deadline governing a particular Administrative Claim contained in an order of the Bankruptcy Court entered before the Effective Date. Holders of Administrative Claims (including, without limitation,
professionals requesting compensation or reimbursement of expenses and the holders of any Claims for federal, state or local taxes) that are required to File a request for payment of such Claims and that do not File such requests by the applicable
bar date specified in either section 4.1(d)(i),(ii) or (iii) shall be forever barred from asserting such Claims against the Debtor or any of its property. Requests for payments of Administrative Claims included within a proof of claim are of no
force and effect, and are disallowed in their entirety as of the Confirmation Date unless such Administrative Claim is subsequently Filed in a timely fashion as provided herein. 

(ii) Professionals: All professionals or other entities requesting compensation or reimbursement of expenses pursuant to sections 327, 328,
330, 331, 503(b) and 1103 of the Bankruptcy Code for services rendered before the Effective Date (including, without limitation, any compensation or commission requested by any professional or any other entity in connection 

  
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with the Chapter 7 Case or for making a substantial contribution in the Bankruptcy Case) shall File and serve on the Reorganized Debtor, the Distribution Trust, the U.S. Trustee and the
Post-Confirmation Service List an application for final allowance of compensation and reimbursement of expenses no later than forty-five (45) days after the Effective Date. Objections to applications of professionals for compensation or
reimbursement of expenses must be filed and served on the Reorganized Debtor, the Distribution Trust, the U.S. Trustee and the Post-Confirmation Service List and the professionals to whose application the objections are addressed no later than
twenty-one (21) days after the date the application is filed, or the Bankruptcy Court may enter an order authorizing the fees without a hearing. For the avoidance of doubt, the Chapter 7 Trustee and the Chapter 11 Trustee shall not be required
to file a request for compensation within 45 days of the Effective Date. The Chapter 7 Trustee and the Chapter 11 Trustee shall have 4 months after the Effective Date to file a request for compensation. The Chapter 7 Trustee’s compensation and
the Chapter 11 Trustee’s compensation shall be paid from the Cash Consideration, and the Distribution Trustee shall make appropriate reserves for such compensation. 

As provided in the Post-Petition Financing Order, under the Post-Petition Facility, the Final Borrowing Notice shall identify the Estimated
Professionals Amount to be held in the Segregated Account pending approval by the Bankruptcy Court of payment of such amounts to the extent incurred under the Approved Budget. The Segregated Account shall be held by Chapter 11 Trustee prior to the
Effective Date, and the Distribution Trustee, after the Effective Date, and payment from the Estimated Professionals Account shall only be payable upon further order from the Court. Any amounts remaining in the Segregated Account one-hundred twenty
(120) days after the Effective Date shall be returned to the Post-Petition Lender. To the extent any estate professional seeks payment of fees and reimbursements or expenses in excess of the amount provided for in the Final Borrowing Notice,
such fees shall be paid from the Cash Consideration upon further order from the Court, not from the Segregated Account. Any professional fees and reimbursements or expenses incurred by the Reorganized Debtor subsequent to the Effective Date may be
paid without application to the Bankruptcy Court. Any professional fees and reimbursements or expenses incurred by the Reorganized Debtor subsequent to the Effective Date may be paid by the Reorganized Debtor without application to the Bankruptcy
Court. Any professional fees and reimbursements or expenses incurred by the Distribution Trustee subsequent to the Effective Date may be paid by the Distribution Trustee without application to the Bankruptcy Court. 

(iii) Tax Claims: All requests for payment of Administrative Claims and other Claims by a Governmental Unit for taxes (and for interest and/or
penalties related to such taxes) for any tax year or period, which accrued or was assessed within the period from and including the Petition Date through and including the Effective Date (“Post-Petition Tax Claims”) and for which no
bar date has otherwise been previously established, must be Filed on or before the later of (i) forty-five (45) days following the Effective Date; and (ii) ninety (90) days following the filing with the applicable Governmental
Unit of the tax return for such taxes for such tax year or period. Any holder of any Post-Petition Tax Claim that is required to File a request for payment of such taxes and does not File such a Claim by the applicable bar date shall be forever
barred from asserting any such Post-Petition Tax Claim against the Debtor or its property, whether any such Post-Petition Tax Claim is deemed to arise prior to, on, or subsequent to the Effective Date. To the extent that the holder of a
Post-Petition Tax Claim holds a lien to secure its Claim under applicable state law, the holder of such Claim shall retain its lien until its Allowed Post-Petition Tax Claim has been paid in full. 

  
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 4.2 Allowed Priority Tax Claims 

Each Holder of an Allowed Priority Tax Claim against Debtor shall receive, from the Cash Consideration, in full satisfaction, settlement,
release and discharge of, and in exchange for, such Allowed Priority Tax Claim (i) Cash equal to the amount of such Allowed Priority Tax Claim, (ii) payment in full through the fifth anniversary of the Petition Date, plus interest, or
(iii) such other less favorable treatment to the Holders of an Allowed Priority Tax Claim as to which the Debtor, or the Proponents and the Holder of such Allowed Priority Tax Claims shall have agreed upon in writing. 

4.3 Ordinary Course Liabilities 

(a) All Ordinary Course Liabilities are deemed to be Allowed Claims to the extent set forth in the Approved Budget. Except as set forth below
in Section 4.3(b), holders of Administrative Claims on account of Ordinary Course Liabilities are not required to file or serve any request for payment of the Ordinary Course Liability. As provided in the Post-Petition Financing Order, under
the Post-Petition Facility, the Final Borrowing Notice shall identify the Estimated Liabilities Amount under the Approved Budget to be held in the Segregated Account pending payment. The Segregated Account shall be held by Chapter 11 Trustee prior
to the Effective Date, and the Distribution Trustee, after the Effective Date. Any amounts remaining in the Segregated Account one-hundred twenty (120) days after the Effective Date shall be returned to the Post-Petition Lender. To the extent
any Ordinary Course Liability is in excess of the Estimated Liabilities Amount provided for in the Final Borrowing Notice, such amounts will be paid from the Cash Consideration. The Chapter 11 Trustee shall continue to pay each Ordinary Course
Liability accrued prior to the Effective Date, pursuant to the payment terms and conditions of the particular transaction giving rise to the Ordinary Course Liability, and the Approved Budget. The Reorganized Debtor shall continue to pay each
Ordinary Course Liability accrued after the Effective Date, pursuant to the payment terms and conditions of the particular transaction giving rise to the Ordinary Course Liability. 

(b) Allowed Post-Petition Lender Financing Claim: The Post-Petition Lender Financing Claim is Allowed in full. Pursuant to the Subscription
Option, the Post-Petition Lender, as a Qualified Ordinary Course Creditor, shall have the option, on account of being the holder of the Allowed Post-Petition Lender Financing Claim, to exchange a total of up to $1,800,000 in satisfaction of such
amount of its Allowed Claim for up to a total of 600 shares, equal to 60 percent, of the issued New Equity, at a rate of $3,000 of its Allowed Post-Petition Lender Financing Claim for one (1) share of New Equity. Further, the Post-Petition
Lender, on account of being the holder of the Allowed Post-Petition Lender Financing Claim, shall receive, from the Financing Consideration, payment in Cash of the remaining amount of the Allowed Post-Petition Lender Financing Claim after the
Post-Petition Lender has exercised the Subscription Option to receive its share of the New Equity.1 For the avoidance of doubt, no 

 

	1 	The Plan Sponsor reserves the right to modify the Subscription Option, provided that (i) no such modification shall adversely the Plan treatment of other creditors and (ii) such modification is approved by the
Post-Petition Lender. 

  
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portion of the Allowed Post-Petition Lender Financing Claim shall be paid from the Cash Consideration. On the Effective Date, all liens and interests granted in exchange for or in connection with
the Post-Petition Note and/or under the Post-Petition Financing Order shall be deemed discharged, cancelled, and released and shall be of no further force and effect and neither the Estate nor the Distribution Trust (as applicable) shall have any
obligation to repay the Allowed Post-Petition Lender Financing Claim from the Cash Consideration. The Financing Consideration payable by the Plan Sponsor under the Plan shall be increased to account for any Cash payment to the Post-Petition Lender
on account of the Allowed Post-Petition Lender Financing Claim, such that the Plan Consideration provided to the Estate net of all Cash payments to the Post-Petition Lender on account of its Allowed Post-Petition Lender Financing Claim shall be
$6,875,000. 
 (c) Any fees or expenses of ESW Capital, LLC that are not otherwise paid out of the Post-Petition Financing pursuant to the
Post-Petition Financing Order, including amounts identified under the Final Borrowing Notice, shall be deemed Allowed and payable as an Ordinary Course Liability pursuant to Section 1129(a)(4) of the Bankruptcy Code. 

ARTICLE V 

CLASSIFICATION AND TREATMENT 

OF CLASSIFIED CLAIMS AND EQUITY INTERESTS 

5.1 Treatment of Allowed Secured Claims (Class 1) 

Each holder of an Allowed Secured Claim shall receive, at the election of the Plan Sponsor, on account of and in full and complete settlement,
release and discharge of, and in exchange for, its Allowed Secured Claims, (i) its Pro Rata Share of the Cash Consideration (ii) reinstatement pursuant to section 1124 of the Bankruptcy Code, (iii) receipt of the collateral securing
such claim and any interest required to be paid pursuant to section 506(b) of the Bankruptcy Code, (iv) such other treatment as the Plan Sponsor and the applicable holder of the Allowed Secured Claim may agree, and/or (v) such other
recovery necessary to satisfy section 1129 of the Bankruptcy Code. 
 5.2 Treatment of Allowed Priority Unsecured Non-Tax Claims (Class
2) 
 Each holder of an Allowed Priority Unsecured Non-Tax Claim against the Debtor shall receive, from the Cash Consideration, on the
Effective Date, on account of and in full and complete settlement, release and discharge of, and in exchange for, such Allowed Priority Unsecured Non-Tax Claim, either cash equal to the full unpaid amount of such Allowed Priority Unsecured Non-Tax
Claim, or such other treatment as the Proponent and the holder of such Allowed Priority Unsecured Non-Tax Claim shall have agreed. 

  
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 5.3 Treatment of Allowed General Unsecured Claims (Class 3) 

As soon as practicable after the Effective Date, each holder of an Allowed General Unsecured Claim shall receive, on account of and in full and
complete settlement, release and discharge of, and in exchange for its Allowed General Unsecured Claim, its Pro Rata Share of (i) remaining Cash Consideration after payment of Allowed Administrative Claims, Allowed Priority Tax Claims, Allowed
Secured Claims, and Allowed Priority Unsecured Non-Tax Claims, and (ii) the Beneficial Interest in the Distribution Trust in accordance with the Distribution Trust Agreement. In no event shall any holder of an Allowed General Unsecured Claim
receive a distribution in an amount in excess of the principal amount of the respective holder’s Allowed General Unsecured Claim. Holders of Allowed General Unsecured Claims shall not receive any Distribution on account of any postpetition
interest. 
 Allowed General Unsecured Claims shall share pro rata with Allowed Intercompany Claims in the remaining Cash Consideration and
the Beneficial Interest in the Distribution Trust. 
 5.4 Treatment of Allowed Intercompany Claims (Class 4) 

As soon as practicable after the Effective Date, each holder of an Allowed Intercompany Claim shall receive, on account of and in full and
complete settlement, release and discharge of, and in exchange for its Allowed Intercompany, its Pro Rata Share of (i) remaining Cash Consideration after payment of Allowed Administrative Claims, Allowed Priority Tax Claims, Allowed Secured
Claims, and Allowed Priority Unsecured Non-Tax Claims, and (ii) the Beneficial Interest in the Distribution Trust in accordance with the Distribution Trust Agreement. In no event shall any holder of an Allowed Intercompany Claim receive a
distribution in an amount in excess of the principal amount of the respective holder’s Allowed Intercompany Claim. Holders of Allowed Intercompany Claims shall not receive any Distribution on account of any postpetition interest. 

Allowed Intercompany Claims shall share pro rata with Allowed General Unsecured Claims in the remaining Cash Consideration and the Beneficial
Interest in the Distribution Trust. 
 5.5 Treatment of Allowed Equity Interests (Class 5) 

As soon as practicable after the Effective Date, each holder of an Allowed Equity Interest shall receive, on account of and in full and
complete release and discharge of, and in exchange for its Allowed Equity Interests, its Pro Rata Share of (i) remaining Cash Consideration after payment of Allowed Administrative Claims, Allowed Priority Tax Claims, Allowed Secured Claims,
Allowed Priority Unsecured Non-Tax Claims, Allowed General Unsecured Claims and Allowed Intercompany Claims, and (ii) the Beneficial Interest in the Distribution Trust in accordance with the Distribution Trust Agreement, following payment in
full of all Allowed General Unsecured Claims. Holders of Equity Interests as of the Voting Record Date shall be entitled to a distribution as a member of Class 5. 

  
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 No Distributions shall be made to holders of Allowed Equity Interests unless and until
holders of Allowed Claims have been paid in full and any Disputed Claims have been disallowed pursuant to an Order of the Bankruptcy Court. 

ARTICLE VI 
 MEANS FOR
IMPLEMENTATION OF THE PLAN 
 6.1 Continued Corporate Existence 

Except as otherwise provided in the Plan, the Reorganized Debtor will continue to exist after the Effective Date as a corporate entity, with
all of the powers of a corporation under applicable law in the jurisdiction in which the Debtor is incorporated and pursuant to its Charter Documents in effect before the Effective Date, as such documents are amended by or pursuant to the Plan. 

Upon the Effective Date, and without any further action by the shareholders, directors, or officers of the Reorganized Debtor, the Reorganized
Debtor’s Charter Documents shall be deemed amended (a) to the extent necessary, to incorporate the provisions of the Plan, and (b) to prohibit the issuance by the Reorganized Debtor of nonvoting securities to the extent required under
section 1123(a)(6) of the Bankruptcy Code, subject to further amendment of such Charter Documents as permitted by applicable law, and to the extent such documents are amended, such documents are deemed to be amended pursuant to the Plan and require
no further action or approval other than any requisite filings required under applicable state, provincial or federal law. The Charter Documents shall be filed with the Plan Supplement. 

6.2 Management and Board of Directors and Discharge of Chapter 11 Trustee 

The Plan Sponsor may nominate and elect new members for the board of directors of the Reorganized Debtor in accordance with the Reorganized
Debtor’s Charter Documents. Upon the Effective Date, the Chapter 11 Trustee shall no longer serve in such capacity and shall be discharged of all duties in connection therewith. 

6.3 Arrangements with the Distribution Trustee 

By the Plan Supplement Deadline, the Chapter 11 Trustee, shall file with the Bankruptcy Court a disclosure identifying the Distribution Trustee
under the Distribution Trust. At the Confirmation Hearing, the Bankruptcy Court shall ratify such Distribution Trustee. All compensation for the Distribution Trustee shall be paid from the Distribution Trust Assets in accordance with the
Distribution Trust Agreement. The approved person shall serve as the Distribution Trustee on execution of the Distribution Trust Agreement at the Closing. 

6.4 The Closing 
 The
Closing of the transactions required and contemplated under the Plan shall take place on the Effective Date at the offices of Haynes and Boone, LLP, 30 Rockefeller Plaza, 26th Floor, New York, New
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parties listed in Section 13.12 of the Plan. The Proponents may reschedule the Closing by making an announcement at the originally scheduled Closing of the new date for the Closing. A notice
of the rescheduled Closing shall be filed with the Bankruptcy Court and served on the parties identified in Section 13.12 of the Plan within two (2) days after the originally scheduled Closing. All documents to be executed and delivered by
any party as provided in this Article VI and all actions to be taken by any party to implement the Plan as provided herein shall be in form and substance satisfactory to the Proponents. The following actions shall occur at or before the Closing
(unless otherwise specified), and shall be effective on the Effective Date: 
 (a) Execution of Documents and Corporate Action. The Chapter
11 Trustee shall deliver all documents and perform all actions reasonably contemplated with respect to implementation of the Plan. The Chapter 11 Trustee, or his designee, is authorized (i) to execute on behalf of the Debtor, in a
representative capacity and not individually, any documents or instruments after the Confirmation Date or at the Closing that may be necessary to consummate the Plan and (ii) to undertake any other action on behalf of the Debtor to consummate
the Plan. Each of the matters provided for under the Plan involving the corporate structure of the Debtor or corporate action to be taken by or required of the Debtor will, as of the Effective Date, be deemed to have occurred and be effective as
provided herein, and shall be authorized, approved, and (to the extent taken before the Effective Date) ratified in all respects without any requirement of further action by stockholders, creditors, or directors of the Debtor. On the Effective Date,
all matters provided for in the Plan involving the corporate structure of the Reorganized Debtor, and all corporate actions required by the Debtor, the Chapter 11 Trustee, and the Reorganized Debtor in connection with the Plan, shall be deemed to
have occurred and shall be in effect, without any requirement of further action by the Chapter 11 Trustee or the Reorganized Debtor. For purposes of effectuating the Plan, none of the transactions contemplated in the Plan shall constitute a change
of control under any agreement, contract, or document of the Debtors. 
 (b) Cancellation of Equity Interests. On the Effective Date, all
existing Equity Interests of Debtor shall be retired, cancelled, extinguished and/or discharged in accordance with the terms of the Plan. Except as otherwise provided in the Plan or the Plan Supplement, on the Effective Date: (1) the
obligations of the Debtor under any certificate, share, note, bond, indenture, purchase right, option, warrant, or other instrument or document, directly or indirectly, evidencing or creating any indebtedness or obligation of or ownership interest
in the Debtor giving rise to any Claim or Equity Interest shall be cancelled as to the Debtor and the Reorganized Debtor shall not have any continuing obligations thereunder and (2) the obligations of the Debtor pursuant, relating, or
pertaining to any agreements, indentures, certificates of designation, bylaws, or certificate or articles of incorporation or similar documents governing the shares, certificates, notes, bonds, purchase rights, options, warrants or other instruments
or documents evidencing or creating any indebtedness or obligation of the Debtor shall be released and discharged. On the Effective Date, 1,000 shares of New Equity of the Reorganized Debtor shall be issued. 

(c) Issuance of New Equity. The New Equity shall be free and clear of all Liens, Claims, Interests, and encumbrances of any kind, except as
otherwise provided in the Plan. All the shares of the New Equity issued pursuant to the Plan shall be duly authorized, validly issued, 

  
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fully paid, and non-assignable. All of the New Equity issued pursuant to the Plan shall be duly authorized, validly issued, fully paid and non-assessable. On the Effective Date, none of the New
Equity will be listed on a national securities exchange. Reorganized Debtor may take all necessary actions after the Effective Date to suspend any requirement to (i) be a reporting company under the Securities Exchange Act, and (ii) file
reports with the Securities and Exchange Commission or any other entity or party. Furthermore, the Reorganized Debtor shall not be required to file monthly operating reports, or any other type of report, with the Court after the Effective Date. 

(d) Funding of the Plan Consideration. On the Effective Date, the Plan Sponsor shall contribute to the Estate an amount of Cash equal to the
Plan Consideration in consideration of the Plan Sponsor’s purchase of the New Equity, inclusive of the Enhanced Deposit. The Plan Consideration is not subject to any financing contingency. The Plan Consideration shall be used to fund
Distributions under the Plan. To the extent Post-Petition Lender does not fully exercise the Subscription Option, the Financing Consideration payable by the Plan Sponsor under the Plan shall be in the amount sufficient to account for any Cash
payment to the Post-Petition Lender on account of the Allowed Post-Petition Lender Financing Claim, such that the Plan Consideration provided to the Estate net of all Cash payments to the Post-Petition Lender on account of its Allowed Post-Petition
Lender Financing Claim shall be $6,875,000. 
 (e) Execution and Ratification of the Distribution Trust Agreement. On the Effective Date,
the Distribution Trust Agreement shall be executed by all parties thereto. The Distribution Trust Agreement shall be provided in the Plan Supplement. Each holder of a Claim or Equity Interest shall be deemed to have ratified and become bound by the
terms and conditions of the Distribution Trust Agreement. 
 (f) Transfer of Distribution Trust Assets. All property of the Debtor
constituting the Distribution Trust Assets shall be conveyed and transferred by the Debtor to the Distribution Trust, free and clear of all Liens, Claims, Equity Interests, and encumbrances. 

6.5 Tax Treatment of the Distribution Trust 

The Distribution Trust established under the Plan is established for the purpose of distributions to Administrative Claims, Secured Claims,
General Unsecured Claims, Intercompany Claims, and Equity Interests by liquidating the Distribution Trust Assets transferred to the Distribution Trust and performing related and incidental functions referenced in the Distribution Trust Agreement,
and the Distribution Trust shall have no objective of continuing or engaging in any trade or business except to the extent reasonably necessary to, and consistent with, the liquidating purpose of the trust. The purpose of the Distribution Trust is
to provide a mechanism for the liquidation of the Distribution Trust Assets, and to distribute the proceeds of the liquidation, net of all claims, expenses, charges, liabilities, and obligations of the Distribution Trust, to the Beneficiaries in
accordance with the terms of the Plan. No business activities will be conducted by the Distribution Trust other than those associated with or related to the liquidation of the Distribution Trust Assets. It is intended that the Distribution Trust be
classified for federal income tax purposes as a “liquidating trust” within the meaning of the Treasury Regulations Section 301.7701-4(d). All parties and Beneficiaries shall treat the 

  
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transfers in trust described herein as transfers to the Beneficiaries for all purposes of the Internal Revenue Code of 1986, as amended (including Sections 61(a)(12), 483, 1001, 1012, and 1274
thereof). All the parties and Beneficiaries shall treat the transfers in trust as if all the transferred assets, including all the Distribution Trust Assets, had been first transferred to the Beneficiaries and then transferred by the Beneficiaries
to the Distribution Trust. The Beneficiaries shall be treated for all purposes of the Internal Revenue Code of 1986, as amended, as the grantors of the Distribution Trust and the owners of the Distribution Trust. The Distribution Trustee shall file
returns for the Distribution Trust as a grantor trust pursuant to Treasury Regulations Section 1.671-4(a) or (b). All parties, including the Beneficiaries and the Distribution Trustee, shall value the Distribution Trust Assets consistently, and such
valuations shall be used for all federal income tax purposes. Beneficiaries may wish to consult with a tax professional regarding the tax consequences of holding a Beneficial Interest in or receiving a Distribution from the Distribution Trust. 

6.6 Right to Enforce, Compromise, or Adjust Distribution Trust Assets 

The Distribution Trustee shall have and retain the sole and full power, authority, and standing to prosecute, compromise, or otherwise resolve
the Distribution Trust Actions assigned to the Distribution Trust, subject to the terms and conditions set forth in the Distribution Trust Agreement. All proceeds derived from such causes of action shall constitute Distribution Trust Assets.
Notwithstanding the foregoing or any other provision herein, the Distribution Trustee shall not prosecute or pursue any Distribution Trust Actions against any Person that is a Protected Action Party. Notwithstanding the foregoing, the Distribution
Trustee shall retain the right to assert any right of setoff or recoupment or any other affirmative defense in connection with any Claim or cause of action asserted by the Protected Action Parties. 

6.7 Preservation of Rights of Action 

The Reorganized Debtor shall retain and shall have the exclusive right to enforce any and all claims, rights and causes of action arising from
its IP. Unless any Claims against a Person are expressly waived, relinquished, exculpated, released, compromised, transferred to the Distribution Trust or settled in the Plan or by a Final Order, in accordance with section 1123(b) of the Bankruptcy
Code, the Reorganized Debtor shall retain and may enforce all rights to commence and pursue any and all retained causes of action, whether arising before or after the Petition Date, and the Reorganized Debtor’s rights to commence, prosecute or
settle such causes of action shall be preserved notwithstanding the occurrence of the Effective Date. 

  
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 ARTICLE VII 

PROVISIONS GOVERNING RESOLUTION OF CLAIMS 

AND DISTRIBUTIONS OF PROPERTY UNDER THE PLAN 

7.1 Right to Object to Claims 

The Plan Sponsor and the Reorganized Debtor shall have the authority, but not the obligation, to object to, litigate, and, subject to the
approval of the Chapter 11 Trustee or the Distribution Trustee (as applicable), settle, the amount, priority or the extent of any Administrative Claim, Secured Claim, Priority Tax Claim, or Priority Unsecured Non-Tax Claim. Notwithstanding anything
to the contrary herein, subject to the terms and conditions set forth in the Distribution Trust Agreement, and notwithstanding any requirements that may be imposed pursuant to Bankruptcy Rule 9019, except insofar as a Claim is Allowed under the Plan
on and after the Effective Date, the Distribution Trustee shall have the authority, but not the obligation, to: (1) file, withdraw or litigate to judgment objections to and requests for estimation of Claims; (2) settle or compromise any
Disputed Claim without any further notice to or action, order or approval by the Bankruptcy Court; and (3) administer and adjust the Claims register to reflect any such settlements or compromises without any further notice to or action, order
or approval by the Bankruptcy Court. The Distribution Trustee shall succeed to any pending objections to Claims filed by the Chapter 11 Trustee prior to the Effective Date, and shall have and retain any and all rights and defenses the Debtor and/or
the Estate had immediately prior to the Effective Date with respect to any Disputed Claim, including the causes of action retained under the Plan. The Reorganized Debtor shall provide commercially reasonable assistance and cooperation to the
Distribution Trustee in connection with the Distribution Trustee’s prosecution of objections to Claims, including, without limitation, access to the books and records of the Debtor or the Reorganized Debtor (as the case may be) and other
information reasonably requested by the Distribution Trustee to enable the Distribution Trustee to perform its obligations under the Distribution Trust Agreement. 

7.2 Deadline for Objecting to Claims 

Objections to Claims must be filed with the Bankruptcy Court, and a copy of the objection must be served on the subject Creditor before the
expiration of the Claim Objection Deadline (unless such period is further extended by subsequent orders of the Bankruptcy Court); otherwise such Claims shall be deemed Allowed in accordance with section 502 of the Bankruptcy Code. The objection
shall notify the Creditor of the deadline for responding to such objection. 
 7.3 Deadline for Responding to Claim Objections 

Within twenty (20) days after service of an objection, or such other date as is indicated on such objection or the accompanying notice
thereof, the Creditor whose Claim was objected to must file a written response to the objection with the Bankruptcy Court and serve a copy on the Distribution Trustee. Failure to file a written response within the twenty (20) day time period
shall constitute a waiver and release of that portion of the subject Claim that was subject to the objection, and shall cause the Bankruptcy Court to enter a default judgment against the non-responding Creditor or granting the relief requested in
the claim objection. 
 7.4 Right to Request Estimation of Claims 

Pursuant to section 502(c) of the Bankruptcy Code, the Debtor, the Reorganized Debtor, and the Distribution Trustee may request estimation or
liquidation of any Disputed Claim that is contingent or unliquidated or any Disputed Claim arising from a right to an equitable remedy or breach of performance. 

  
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 7.5 Distribution Procedures Regarding Allowed Claims 

(a) In General 
 The Distribution
Trustee shall make all Distributions required to be made under the Plan, including Distributions from the Distribution Trust. 
 (b)
Distributions on Allowed Claims Only 
 Distributions from Available Cash shall be made only to the holders of Allowed Claims. Until and if a
Disputed Claim becomes an Allowed Claim, the holder of that Disputed Claim shall not receive a Distribution from Available Cash. For the avoidance of doubt, no Distributions shall be made to holders of Allowed Equity Interests unless and until
holders of Allowed Claims have been paid in full and any Disputed Claims have been disallowed pursuant to an Order of the Bankruptcy Court. 

(c) Place and Manner of Payments of Distributions 

Except as otherwise specified in the Plan, Distributions from Available Cash shall be made by mailing such Distribution to the Creditor or
Interest Holder at the address listed in any proof of claim or interest filed by the Creditor or Interest Holder or at such other address as such Creditor or Interest Holder shall have specified for payment purposes in a written notice received by
the Distribution Trustee at least twenty (20) days before a Distribution Date. If a Creditor or Interest Holder has not filed a proof of claim or interest or sent the Distribution Trustee a written notice of payment address, then the
Distribution(s) for such Creditor or Interest Holder will be mailed to the address identified in the Schedules of Assets and Liabilities or as provided by the Debtor’s stock transfer agent. The Distribution Trustee shall distribute any Cash by
wire, check, or such other method as it deems appropriate under the circumstances. Before receiving any Distributions, all Creditors and Interest Holders, at the request of the Distribution Trustee, must provide written notification of their
respective Federal Tax Identification Numbers or Social Security Numbers to the Distribution Trustee; otherwise, the Distribution Trustee may suspend Distributions to any Creditors or Interest Holders who have not provided their Federal Tax
Identification Numbers or Social Security Numbers. 
 (d) Undeliverable Distributions 

If a Distribution made from Available Cash to any Creditor or Interest Holder is returned as undeliverable, the Distribution Trustee shall use
reasonable efforts to determine the then current address for such Creditor or Interest Holder. If the Distribution Trustee cannot determine, or is not notified of, a then current address for such Creditor or Interest Holder within six months after
the Effective Date, the Distribution reserved for such Creditor or Interest Holder shall be deemed an unclaimed Distribution, and Section 7.5(e) of the Plan shall be applicable thereto. 

  
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 (e) Unclaimed Distributions 

If the current address for a Creditor or Interest Holder entitled to a Distribution from Available Cash under the Plan has not been determined
within six months after the Effective Date or such Creditor or Interest Holder has otherwise not been located or submitted a valid Federal Tax Identification Number or Social Security Number to the Distribution Trustee, then such Creditor or
Interest Holder (i) shall no longer be a Creditor or Interest Holder (as applicable) and (ii) shall be deemed to have released such Claim. 

(f) Withholding 
 The
Distribution Trustee may, but shall not be required to, at any time withhold from a Distribution from Available Cash to any Person (except the Internal Revenue Service) amounts sufficient to pay any tax or other charge that has been or may be
imposed on such Person with respect to the amount distributable or to be distributed under the income tax laws of the United States or of any state or political subdivision or entity by reason of any Distribution provided for in the Plan, whenever
such withholding is determined by the Distribution Trustee (in its sole discretion) to be required by any law, regulation, rule, ruling, directive, or other governmental requirement. The Distribution Trustee, in the exercise of its sole discretion
and judgment, may enter into agreements with taxing or other authorities for the payment of such amounts that may be withheld in accordance with the provisions of this section. 

(g) Dissolution 
  

	 	(i)	The Distribution Trustee and Distribution Trust shall be discharged or dissolved, as the case may be, at such time as all of the Distribution Trust Assets have been distributed pursuant to the Plan and the Distribution
Trust Agreement; provided, however, that in no event shall the Distribution Trust be dissolved later than three (3) years from the creation of the Distribution Trust unless the Bankruptcy Court, upon motion within the six-month period prior to
the third (3rd) anniversary (or within the six-month period prior to the end of an extension period), determines that a fixed period extension (not to exceed three (3) years, together with any prior extensions, without a favorable private
letter ruling from the Internal Revenue Service or an opinion of counsel satisfactory to the Distribution Trustee that any further extension would not adversely affect the status of the trust as a liquidating trust for United States federal income
tax purposes) is necessary to facilitate or complete the liquidation of the Distribution Trust Assets. 

  

	 	(ii)	 If at any time the Distribution Trustee determines, in reliance upon such professionals as a Distribution Trustee
may retain, that the expense of administering the Distribution Trust so as to make a final distribution to Distribution Trust Beneficiaries is likely to exceed the value of the assets remaining in the Distribution Trust, the Distribution Trustee may
(i) 

  
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reserve any amount necessary to dissolve the Distribution Trust, (ii) donate any balance to a charitable organization (A) described in section 501(c)(3) of the Internal Revenue Code,
(B) exempt from United States federal income tax under section 501(a) of the Internal Revenue Code, (C) not a “private foundation,” as defined in section 509(a) of the Internal Revenue Code, and (D) that is unrelated to the
Debtor, the Distribution Trust, and any insider of the Distribution Trustee, and (iii) dissolve the Distribution Trust. 

7.6 Procedures Regarding Distributions from the Distribution Trust 

Procedures regarding Distributions from the Distribution Trust to holders of Class 3 Allowed General Unsecured Claims, Class 4 Allowed
Intercompany Claims, and Class 5 Allowed Equity Interests shall be governed by the Distribution Trust Agreement. 
 ARTICLE VIII 

EXECUTORY CONTRACTS 

8.1 Assumption of Executory Contracts 

On the Effective Date, and subject to section 8.6 hereof, all Executory Contracts identified on the Schedule of Assumed Contracts and Unexpired
Leases, to be attached as Exhibit B, shall be deemed assumed by the Reorganized Debtor. The Plan Sponsor may amend the Schedule of Assumed Contracts and Unexpired Leases through the deadline to file the Plan Supplement. Entry of the
Confirmation Order shall constitute approval of the assumption of such Executory Contracts under sections 365 and 1123 of the Bankruptcy Code. 

8.2 Rejection of Executory Contracts 

All Executory Contracts not identified on the Schedule of Assumed Contracts and Unexpired Leases (or assumed by the Debtor previously) shall be
deemed rejected on the Effective Date. Entry of the Confirmation Order shall constitute approval of such rejections under sections 365 and 1123 of the Bankruptcy Code. Notwithstanding the rejection of an Executory Contract, the terms of any
confidentiality agreement or covenant not to compete contained therein shall survive and remain in full force and effect for the term thereof. 

The Reorganized Debtor will not assume any employment, severance, bonus, incentive, commission, compensation or similar agreement or plan (or
any agreement outside the ordinary course of business) with any employees, officers or directors. To the extent the 401(k) Plan has not yet been formally rejected and/or terminated prior to the Effective Date, such 401(k) Plan is being rejected by
the Reorganized Debtor, and the Chapter 11 Trustee shall take all steps necessary prior to the Effective Date to effectuate termination of the 401(k) Plan. The Reorganized Debtor will not assume the Employee Handbook, if any. 

On the Effective Date, any and all equity based incentive plans or stock ownership plans of the Debtor, including all agreements related
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other plans, agreements or documents giving rise to Equity Interests, including the contingent cash components of any such plans, agreements, or documents, shall be immediately terminated without
any action of the Debtor, the Chapter 11 Trustee, the Reorganized Debtor or the Plan Sponsor. To the extent such plans, agreements or documents are considered to be Executory Contracts, such plans, agreements or documents shall be deemed to be, and
shall be treated as though they are, Executory Contracts that are rejected pursuant to section 365 of the Bankruptcy Code under the Plan. Any Claims resulting from such rejection shall constitute subordinated claims pursuant to section 510(b) of the
Bankruptcy Code, except that Claims for contingent cash components of any such plans, agreements or documents shall constitute General Unsecured Claims. From and after the Effective Date, all stock options and other equity awards outstanding or
issued at such time, whether included in a warrant, plan, contract, agreement or otherwise, will have no value, shall be cancelled and extinguished and thus will not entitle any holder thereof to purchase or otherwise acquire any equity interests in
the Reorganized Debtor. 
 8.3 Procedures Related to Assumption of Executory Contracts 

(a) Establishment of Cure Claim Amounts 

The Cure Amounts associated with the assumption of the Executory Contracts pursuant to Section 8.1 of the Plan are specified in the
Schedule of Assumed Contracts and Unexpired Leases. The Chapter 11 Trustee shall serve counterparties to the Executory Contracts with a Notice of (I) Possible Assumption of Contracts and Leases, (II) Fixing of Cure Amounts, and (III) Deadline
to Object Thereto. 
 Any Objection to Cure Amount including (i) an objection to the applicable Cure Amount (a “Cure
Objection”) and (ii) an objection to the adequate assurance of future performance (the “Adequate Assurance Objection”) to be provided by the Plan Sponsor on behalf of the Reorganized Debtor must be in writing, filed
with the Court, and served upon (a) the Chapter 11 Trustee, (b) counsel to the Chapter 11 Trustee, (c) counsel to the Plan Sponsor, and (d) the U.S. Trustee, no later than fourteen (14) days after the Notice of
(I) Possible Assumption of Contracts and Leases, (II) Fixing of Cure Amounts, and (III) Deadline to Object Thereto is mailed to the affected party, as indicated by the date noted on such notice. The objection must set forth the specific default
alleged under the applicable Assumed Contract or Unexpired Lease and claim a specific monetary amount that differs from the applicable Cure Amount, if any, and/or further information required of the Reorganized Debtor with respect to adequate
assurance of future performance. 
 If no Objection to the Cure Amount is received by the Objection Deadline to an Assumed Contract or
Lease, then the assumption of such Assumed Contract or Unexpired Lease shall be authorized pursuant to section 365 of the Bankruptcy Code and the applicable Cure Amount, if any, shall be binding upon the non-Debtor counterparty to such Assumed
Contract or Lease for all purposes and shall constitute a final determination of the cure amount required to be paid to such Assumed Contract or Unexpired Lease counterparty in connection with the assumption of such Assumed Contract or Unexpired
Lease, and the non-Debtor counterparty to such Assumed Contract or Unexpired Lease shall be deemed to have waived its right to object to, contest, condition, or otherwise restrict the assumption of such Assumed Contract or Unexpired Lease 

  
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(including, without limitation, from asserting any additional cure or other amounts with respect to the Assumed Contract or Unexpired Lease arising prior to such assumption). Furthermore, upon
the assumption of such Assumed Contract or Unexpired Lease, the Reorganized Debtor shall enjoy all of the Debtor’s rights and benefits thereunder without the necessity of obtaining any party’s written consent to the Debtor’s
assumption of such rights and benefits. 
 (b) Objection to Disputed Cure Amounts 

The Plan Sponsor shall have the right to examine any Objection to Cure Amount filed by any party, and shall have the right to object to and
contest the Disputed Cure Amount asserted therein. 
 If an objection to a Disputed Cure Amount has not been resolved by the Bankruptcy
Court or agreement of the parties by the Effective Date, the Executory Contract related to such Disputed Cure Amount shall be deemed assumed by the Reorganized Debtor effective on the Effective Date; provided, however, the Reorganized Debtor may
revoke an assumption of any such Executory Contract within ten (10) days after entry of an order by the Bankruptcy Court adjudicating the objection to the Disputed Cure Amount related to the Executory Contract by filing a notice of such
revocation with the Bankruptcy Court and serving a copy on the party(ies) whose Executory Contract is rejected. Any Executory Contract identified in a revocation notice shall be deemed rejected retroactively to the Effective Date. 

(c) Payment of Cure Amounts 

Within ten (10) Business Days after the Effective Date, the Reorganized Debtor shall pay, in Cash, all Cure Amounts related to Executory
Contracts listed on the Schedule of Assumed Contracts and Unexpired Leases, other than Disputed Cure Amounts. Subject to the revocation rights described in Section 8.3(b) above, the Reorganized Debtor shall pay all Cure Amounts that are subject
to an objection on the Effective Date within ten (10) days after entry of an order by the Bankruptcy Court resolving the objection or approving an agreement between the parties concerning the Cure Amount. 

(d) No Admission of Liability 

Neither the inclusion nor exclusion of any Executory Contract by the Proponents on the Schedule of Assumed Contracts and Unexpired Leases, nor
anything contained in the Plan, shall constitute an admission by the Proponents that any such contract or unexpired lease is in fact an Executory Contract or that the Debtor has any liability thereunder. 

(e) Reservation of Rights 

Nothing in the Plan shall waive, excuse, limit, diminish, or otherwise alter any of the defenses, claims, causes of action, or other rights of
the Debtor under any executory or non-executory contract or any unexpired or expired lease, nor shall any provision of the Plan increase, augment, or add to any of the duties, obligations, responsibilities, or liabilities of the Debtor under any
such contract or lease. 

  
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 8.4 Rejection Claim Bar Date 

Each Claim resulting from the rejection of an Executory Contract pursuant to Section 8.2 of the Plan shall be filed with the Bankruptcy
Court no later than the Rejection Claim Bar Date; provided, however, any party whose Executory Contract is rejected pursuant to a revocation notice pursuant to Section 8.3(b) above may file a rejection damage Claim arising out of such rejection
within 30 days after the filing of the revocation notice with the Bankruptcy Court. Any Claim resulting from the rejection of an Executory Contract not filed by the applicable deadline shall be discharged and forever barred, and shall not be
entitled to any Distributions under the Plan. The Distribution Trustee shall have the right to object to any rejection damage Claim. 

8.5 Indemnification Obligations 

Any obligation of the Debtor to indemnify, reimburse, or limit the liability of any Person, including any officer or director of the Debtor, or
any agent, professional, financial advisor, or underwriter of any securities issued by the Debtor, relating to any acts or omissions occurring before the Effective Date, whether arising pursuant to charter, bylaws, contract or applicable state law,
shall be deemed to be, and shall be treated as, an Executory Contract and (a) shall be deemed to be rejected, canceled, and discharged pursuant to the Plan as of the Effective Date and (b) any and all Claims resulting from such obligations
are disallowed under section 502(e) of the Bankruptcy Code or other applicable grounds, including section 502(d) or violations of sections 327, 362, 363 or other requirements of the Bankruptcy Code, or, if any court of applicable jurisdiction rules
to the contrary, such Claim shall be estimated pursuant to section 502(c) of the Bankruptcy Code in the amount of $0 or such other amount as the Bankruptcy Court shall determine. Notwithstanding any of the foregoing, nothing contained in the Plan
impacts, impairs, or prejudices the rights of the Distribution Trustee to pursue the Distribution Trust Actions. 
 8.6 Federal
Government Rights 
 Notwithstanding any other provisions of the Plan, no Executory Contract with or any sensitive information of the
federal government, including Defense Advanced Research Projects Agency, the National Security Agency, or the Department of Defense shall be assumed by or transferred to the Reorganized Debtor absent the express written consent of the federal
government counterparty to such Executory Contract. 
 ARTICLE IX 

EFFECT OF REJECTION BY ONE OR MORE CLASSES 

9.1 Impaired Classes Entitled to Vote 

Each impaired Class shall be entitled to vote separately to accept or reject the Plan. A holder of a Disputed Claim which has not been
temporarily allowed for purposes of voting on the Plan may vote only such Disputed Claim in an amount equal to the portion, if any, of such Claim shown as fixed, liquidated, and undisputed in the Debtor’s Schedules of Assets and Liabilities.

  
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 9.2 Acceptance by Class 

A Class of Claims or shall have accepted the Plan if the Plan is accepted by at least two thirds (2/3) in amount and more than one half
(1/2) in number of the Allowed Claims of such Class that have voted to accept or reject the Plan. 
 9.3 Reservation of Cramdown
Rights 
 In the event that any impaired Class shall fail to accept the Plan in accordance with section 1129(a) of the Bankruptcy Code,
the Proponents reserve the right to request that the Bankruptcy Court confirm the Plan in accordance with the provisions of the section 1129(b) of the Bankruptcy Code. 

ARTICLE X 
 EFFECT OF
CONFIRMATION 
 10.1 Legally Binding Effect 

The provisions of the Plan shall bind all Creditors and Interest Holders, whether or not they accept the Plan and wherever located. On and
after the Effective Date, all holders of Claims and Equity Interests shall be precluded and enjoined from asserting any Claim or Equity Interest against the Debtor or its assets or properties (and for the avoidance of doubt, against the Reorganized
Debtor or its assets or properties) based on any transaction or other activity of any kind that occurred prior to the Confirmation Date except as permitted under the Plan. 

10.2 Vesting of Property of Debtor in Reorganized Debtor 

On the Effective Date, except as otherwise expressly provided in the Plan or Confirmation Order, all Estate Property, other than the
Distribution Trust Assets, shall vest in the Reorganized Debtor free and clear of all Liens, Claims, Equity Interests, and encumbrances of any kind, except as otherwise provided in the Plan. Notwithstanding the foregoing, any sensitive information
of the federal government, including Defense Advanced Research Projects Agency, the National Security Agency, or the Department of Defense which resides on the Debtor’s servers shall not be included in the Estate Property which vests in the
Reorganized Debtor. 
 On the Effective Date, except as otherwise provided in the Plan, the Reorganized Debtor may operate its business and
may use, acquire, or dispose of property, without supervision of approval by the Court and free of any restrictions of the Bankruptcy Code or Bankruptcy Rules. 

ARTICLE XI 
 INJUNCTIONS,
RELEASES, AND DISCHARGE 
 11.1 Discharge of the Debtor 

To the fullest extent provided under section 1141(d)(1)(A) and other applicable provisions of the Bankruptcy Code, except as otherwise
expressly provided by the Plan or the Confirmation Order, all distributions under the Plan will be in exchange for, and in 

  
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complete satisfaction, settlement, discharge, and release of, all Claims and causes of action, whether known or unknown, including any interest accrued on such Claims from and after the Petition
Date, against, liabilities of, Liens on, obligations of, rights against, and Equity Interests in the Debtor or any of its assets or properties, and regardless of whether any property will have been distributed or retained pursuant to the Plan on
account of such Claims or Equity Interests. Except as otherwise expressly provided by the Plan or the Confirmation Order, upon the Effective Date, the Debtor and its estate will be deemed discharged and released under and to the fullest extent
provided under section 1141(d)(1)(A) and other applicable provisions of the Bankruptcy Code from any and all Claims and Equity Interests of any kind or nature whatsoever, including, but not limited to, demands and liabilities that arose before the
Confirmation Date, and all debts of the kind specified in section 502(g), 502(h), or 502(i) of the Bankruptcy Code. The Confirmation Order shall be a judicial determination of the discharge of all Claims against and Equity Interests in the Debtor,
subject to the occurrence of the Effective Date. 
 11.2 Discharge Injunction 

Except as otherwise expressly provided in the Plan, the discharge and releases set forth in Section 11.1 shall also operate as an
injunction permanently prohibiting and enjoining the commencement or continuation of any action or the employment of process with respect to, or any act to collect, recover from, or offset (a) any Claim discharged and released in
Section 11.1 (b) any cause of action, whether known or unknown, based on the same subject matter as any Claim discharged and released in Section 11.1. Except as otherwise expressly provided in the Plan, all Persons shall be precluded and
forever barred from asserting against the Protected Parties, their successors or assigns, or their assets, properties, or interests in property any other or further Claims, or any other right to legal or equitable relief regardless of whether such
right can be reduced to a right to payment, based upon any act or omission, transaction, or other activity of any kind or nature that occurred prior to the Effective Date, whether or not the facts of or legal bases therefor were known or existed
prior to the Effective Date. 
 11.3 Exculpation and Limitation of Liability 

The Chapter 7 Trustee, the Chapter 11 Trustee and their respective professionals will neither have nor incur any liability to any entity for
any claims or causes of action arising before, on or after the Petition Date and prior to or on the Effective Date for any act taken or omitted to be taken in connection with, or related to formulating, negotiating, preparing, disseminating,
implementing, administering, confirming or effecting the consummation of the Plan, the Disclosure Statement, or any other contract, instrument, release or other agreement or document created or entered into in connection with the Plan or any other
prepetition or postpetition act taken or omitted to be taken in connection with or in contemplation of the restructuring of the Debtor, the approval of the Disclosure Statement or Confirmation or consummation of the Plan; provided, however, that the
foregoing provisions will have no effect on the liability of any entity that results from any such act or omission that is determined in a Final Order of the Bankruptcy Court or other court of competent jurisdiction to have constituted gross
negligence or willful misconduct; 

  
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provided, further, that the Chapter 7 Trustee and the Chapter 11 Trustee will be entitled to rely upon the advice of counsel concerning their duties pursuant to, or in connection with, the above
referenced documents, actions or inactions. 
 11.4 Releases by the Debtor 

NOTWITHSTANDING ANYTHING TO THE CONTRARY IN THIS PLAN OR THE CONFIRMATION ORDER, EFFECTIVE AS OF THE EFFECTIVE DATE, FOR GOOD AND VALUABLE
CONSIDERATION PROVIDED BY EACH OF THE RELEASED PARTIES, THE ADEQUACY OF WHICH IS HEREBY ACKNOWLEDGED AND CONFIRMED, THE DEBTOR WILL BE DEEMED TO HAVE CONCLUSIVELY, ABSOLUTELY, UNCONDITIONALLY, IRREVOCABLY, AND FOREVER PROVIDED A FULL DISCHARGE,
WAIVER AND RELEASE TO THE RELEASED PARTIES AND THEIR RESPECTIVE RELATED PARTIES (AND EACH SUCH RELEASED PARTY AND THEIR RESPECTIVE RELATED PARTIES SO RELEASED SHALL BE DEEMED FOREVER RELEASED, WAIVED AND DISCHARGED BY THE DEBTOR RELEASING PARTIES)
AND THEIR RESPECTIVE PROPERTIES FROM ANY AND ALL RELEASED CLAIMS THAT THE DEBTOR AND THEIR RESPECTIVE RELATED PARTIES WOULD HAVE BEEN LEGALLY ENTITLED TO ASSERT IN THEIR OWN RIGHT, ON BEHALF OF ONE ANOTHER, OR ON BEHALF OF ANOTHER PARTY AGAINST THE
RELEASED PARTIES OR THEIR RESPECTIVE RELATED PARTIES; PROVIDED, HOWEVER, THAT THE FOREGOING PROVISIONS OF THIS RELEASE SHALL NOT OPERATE TO WAIVE OR RELEASE (I) ANY DISTRIBUTION TRUST ACTION EXPRESSLY SET FORTH IN AND PRESERVED BY THE PLAN OR
THE PLAN SUPPLEMENT; (II) THE RIGHTS OF THE DEBTOR TO ENFORCE THE PLAN AND THE CONTRACTS, INSTRUMENTS, RELEASES AND OTHER AGREEMENTS OR DOCUMENTS DELIVERED UNDER OR IN CONNECTION WITH THE PLAN OR ASSUMED PURSUANT TO THE PLAN OR ASSUMED PURSUANT TO
FINAL ORDER OF THE BANKRUPTCY COURT; AND/OR (III) ANY CLAIMS OR DEFENSES AGAINST THIRD PARTY. 
 THE FOREGOING RELEASE SHALL BE
EFFECTIVE AS OF THE EFFECTIVE DATE WITHOUT FURTHER NOTICE TO OR ORDER OF THE BANKRUPTCY COURT, ACT OR ACTION UNDER APPLICABLE LAW, REGULATION, ORDER, OR RULE OR THE VOTE, CONSENT, AUTHORIZATION OR APPROVAL OF ANY PERSON AND THE CONFIRMATION ORDER
WILL PERMANENTLY ENJOIN THE COMMENCEMENT OR PROSECUTION BY ANY PERSON OR ENTITY, WHETHER DIRECTLY, DERIVATIVELY OR OTHERWISE, OF ANY CLAIMS, OBLIGATIONS, SUITS, JUDGMENTS, DAMAGES, DEMANDS, DEBTS, RIGHTS, CAUSES OF ACTION, OR LIABILITIES RELEASED
PURSUANT TO THIS RELEASE. FOR PURPOSES OF THIS RELEASE, AND WITHOUT LIMITING THE SCOPE OF THE FOREGOING, THE DEBTOR IS SPECIFICALLY NOT RELEASING THE DISTRIBUTION TRUST ACTIONS. 

  
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 11.5 Releases by Third Parties 

TO THE EXTENT ALLOWED BY APPLICABLE LAW, ON, AND AS OF, THE EFFECTIVE DATE AND FOR GOOD AND VALUABLE CONSIDERATION, THE RECEIPT AND
SUFFICIENCY OF WHICH ARE ACKNOWLEDGED, THE PROTECTED PARTIES (ACTING IN ANY CAPACITY WHATSOEVER) SHALL BE FOREVER RELEASED AND DISCHARGED FROM ANY AND ALL CLAIMS, OBLIGATIONS, ACTIONS, SUITS, RIGHTS, DEBTS, ACCOUNTS, CAUSES OF ACTION, REMEDIES,
AVOIDANCE ACTIONS, AGREEMENTS, PROMISES, DAMAGES, JUDGMENTS, DEMANDS, DEFENSES, OR CLAIMS IN RESPECT OF EQUITABLE SUBORDINATION, AND LIABILITIES THROUGHOUT THE WORLD UNDER ANY LAW OR COURT RULING THROUGH THE EFFECTIVE DATE (INCLUDING ALL CLAIMS
BASED ON OR ARISING OUT OF FACTS OR CIRCUMSTANCES THAT EXISTED AS OF OR PRIOR TO THE PLAN IN THE BANKRUPTCY CASE, INCLUDING CLAIMS BASED ON NEGLIGENCE OR STRICT LIABILITY, AND FURTHER INCLUDING ANY DERIVATIVE CLAIMS ASSERTED ON BEHALF OF THE DEBTOR,
WHETHER KNOWN OR UNKNOWN, FORESEEN OR UNFORESEEN, EXISTING OR HEREINAFTER ARISING, IN LAW, EQUITY OR OTHERWISE, THAT THE DEBTOR, ITS ESTATE, OR THE REORGANIZED DEBTOR WOULD HAVE BEEN LEGALLY ENTITLED BY APPLICABLE LAW TO ASSERT IN ITS OWN RIGHT,
WHETHER INDIVIDUALLY OR COLLECTIVELY) WHICH THE DEBTOR, ITS ESTATE, THE REORGANIZED DEBTOR, CREDITORS OR OTHER PERSONS RECEIVING OR WHO ARE ENTITLED TO RECEIVE DISTRIBUTIONS UNDER THE PLAN MAY HAVE AGAINST ANY OF THEM IN ANY WAY RELATED TO THE
BANKRUPTCY CASE OR THE DEBTOR (OR ITS PREDECESSORS); PROVIDED, HOWEVER, THE RELEASES PROVIDED FOR IN THIS PARAGRAPH SHALL NOT EXTEND TO ANY CLAIMS BY ANY GOVERNMENTAL UNIT WITH RESPECT TO CRIMINAL LIABILITY UNDER APPLICABLE LAW, WILLFUL MISCONDUCT
OR BAD FAITH UNDER APPLICABLE LAW, OR ULTRA VIRES ACTS UNDER APPLICABLE LAW. NO COMPLIANCE WITH OR RELIANCE ON THE APPLICABLE LAW OR THE ORDERS OF THE BANKRUPTCY COURT SHALL BE DEEMED OR PERMITTED TO BE JUDGED, DECLARED, OR
RULED TO BE IN ANY WAY WRONGFUL, IN BAD FAITH, ULTRA VIRES, INEQUITABLE OR OTHERWISE SUBJECT TO ANY SANCTION OR PUNISHMENT, ALL OF WHICH ARE PREEMPTED, SUPERSEDED AND NEGATED BY THE PLAN TO THE MAXIMUM EXTENT PERMITTED BY
APPLICABLE LAW. 
 A VOTE TO ACCEPT THE PLAN, OR FAILURE TO VOTE BY A CREDITOR ENTITLED TO VOTE, CONSTITUTES AN ACCEPTANCE OF ALL OF
THE TERMS AND PROVISIONS CONTAINED IN THE PLAN, INCLUDING, BUT NOT LIMITED TO, THE GRANT OF RELEASES, INJUNCTIONS, EXCULPATION, EXONERATION AND OTHER LIMITATIONS OF LIABILITY IN THE PLAN. IF A CREDITOR VOTES TO REJECT THE PLAN, THE CREDITOR MAY
NEVERTHELESS BE DEEMED TO 

  
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BE BOUND TO THE RELEASES AND BE BOUND BY THE INJUNCTIONS, EXCULPATIONS, AND OTHER LIMITATIONS OF LIABILITY IN THE PLAN TO THE MAXIMUM EXTENT PERMITTED BY LAW, AS LATER DETERMINED BY THE COURT. IF
A CREDITOR ELECTS NOT TO GRANT THE RELEASES CONTAINED IN THIS ARTICLE 11.5 OF THE PLAN, TO (1) THE PLAN SPONSOR AND ITS AFFILIATES, (2) THE POST-PETITION LENDER, AND (3) DIRECTORS, OFFICERS, AGENTS, ATTORNEYS, ACCOUNTANTS,
CONSULTANTS, EQUITY HOLDERS, FINANCIAL ADVISORS, INVESTMENT BANKERS, PROFESSIONALS, EXPERTS, AND EMPLOYEES OF ANY OF THE FOREGOING, IN THEIR RESPECTIVE CAPACITIES AS SUCH, THEN THE CREDITOR MUST OPT-OUT IN THE
BALLOT. ELECTION TO WITHHOLD CONSENT IS AT THE CREDITOR’S OPTION. 
 FOR THE AVOIDANCE OF DOUBT, NOTHING IN THIS ARTICLE XI
SHALL PREVENT THE ENFORCEMENT OF THE TERMS OF THE PLAN. 
 ARTICLE XII 

RETENTION OF JURISDICTION 

12.1 Exclusive Bankruptcy Court Jurisdiction 

Notwithstanding the entry of the Confirmation Order or the occurrence of the Effective Date, the Bankruptcy Court shall retain and have such
jurisdiction over the Bankruptcy Case to the maximum extent as is legally permissible, including, without limitation, for the following purposes: 

(a) To allow, disallow, determine, liquidate, classify or establish the priority or secured or unsecured status of or estimate any Right of
Action, Claim or Equity Interest, including, without limitation, the resolution of any request for payment of any Administrative Claim and the resolution of any and all objections to the allowance or priority of Claims or Equity Interests; 

(b) To ensure that Distributions to holders of Allowed Claims are accomplished pursuant to the provisions of the Plan; 

(c) To determine any and all applications or motions pending before the Bankruptcy Court on the Effective Date of the Plan, including without
limitation any motions for the rejection, assumption or assumption and assignment of any Executory Contract; 
 (d) To consider and approve
any modification of the Plan, remedy any defect or omission, or reconcile any inconsistency in the Plan, or any order of the Bankruptcy Court, including the Confirmation Order; 

(e) To determine all controversies, suits and disputes that may arise in connection with the interpretation, enforcement or consummation of
the Plan or any Plan Documents or any entity’s obligations in connection with the Plan or any Plan Documents, or to defend any of the rights, benefits, Estate Property transferred, created, or otherwise provided or confirmed by the Plan or the
Confirmation Order or to recover damages or other relief for violations thereof; 

  
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 (f) To consider and act on the compromise and settlement of any claim or cause of action by
or against the Debtor, the Estate, the Reorganized Debtor or the Distribution Trustee; 
 (g) To decide or resolve any and all applications,
motions, adversary proceedings, contested or litigated matters, and any other matters, or grant or deny any applications involving the Chapter 11 Trustee, the Debtor or the Estate that may be pending on the Effective Date or that may be brought by
the Chapter 11 Trustee, the Reorganized Debtor, or the Distribution Trustee (as applicable), including any Distribution Trust Actions, or any other related proceedings by the Reorganized Debtor, and to enter and enforce any default judgment on any
of the foregoing; 
 (h) To decide or resolve any and all applications filed by the Chapter 7 Trustee or the Chapter 11 Trustee for
compensation; 
 (i) To issue orders in aid of execution and implementation of the Plan or any Plan Documents to the extent authorized by
section 1142 of the Bankruptcy Code or provided by the terms of the Plan; 
 (j) To decide issues concerning the federal or state tax
liability of the Debtor which may arise in connection with the confirmation or consummation of the Plan or any Plan Documents; 
 (k) To
interpret and enforce any orders entered by the Bankruptcy Court in the Bankruptcy Case; and 
 (l) To enter an order closing this
Bankruptcy Case when all matters contemplating the use of such retained jurisdiction have been resolved and satisfied. 
 12.2 Limitation
on Jurisdiction 
 In no event shall the provisions of the Plan be deemed to confer in the Bankruptcy Court jurisdiction greater than
that established by the provisions of 28 U.S.C. §§ 157 and 1334, as well as the applicable circumstances that continue jurisdiction for defense and enforcement of the Plan and Plan Documents. For the avoidance of doubt, however, such
jurisdiction shall be deemed, by the entry of the Confirmation Order, to: 
 (a) Permit entry of a final judgment by the Bankruptcy Court in
any core proceeding referenced in 28 U.S.C. § 157(b) and to hear and resolve such proceedings in accordance with 28 U.S.C. § 157(c) and any and all related proceedings, including, without limitation, (i) all proceedings concerning
disputes with, or Rights of Action or Claims against, any Person that the Debtor, the Estate, the Distribution Trust or the Reorganized Debtor or any of their successors or assigns, may have, and (ii) any and all Rights of Action or other
Claims against any Person for harm to or with respect to (x) any Estate Property, including any infringement of IP or conversion of Estate Property, or (y) any Estate Property liened or transferred by the Debtor to any other Person; 

  
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 (b) Include jurisdiction over the recovery of any Estate Property (or property transferred by
the Debtor with Bankruptcy Court approval) from any Person wrongly asserting ownership, possession or control of the same, whether pursuant to sections 542, 543, 549, 550 of the Bankruptcy Code or otherwise, as well as to punish any violation of the
automatic stay under section 362 of the Bankruptcy Code or any other legal rights of the Debtor or the Estate under or related to the Bankruptcy Code; and 

(c) Permit the taking of any default judgment against any Person who has submitted himself or herself to the jurisdiction of the Bankruptcy
Court. 
 ARTICLE XIII 

MISCELLANEOUS PROVISIONS 

13.1 Conditions to Confirmation 

The Confirmation Order will not be effective unless (a) the Confirmation Order shall be in form and substance acceptable to the Plan
Sponsor, in its reasonable discretion, and shall provide for the Plan Sponsor and the Post-Petition Lender to acquire the New Equity subject to the Subscription Option, free and clear of all Liens, Claims, Equity Interests and encumbrances of any
kind, except as otherwise provided in the Plan, and (b) the final version of the Plan, Plan Supplement, and any other documents, or schedules thereto, shall have been filed in form and substance acceptable to the Plan Sponsor in its reasonable
discretion. 
 13.2 Conditions to Effectiveness 

The Plan will not be effective unless (a) the conditions to confirmation above have been either satisfied, or waived, by the Plan Sponsor,
(b) the Confirmation Order has been entered by the Bankruptcy Court, and no stay or injunction is in effect with respect thereto, (c) Plan Sponsor and the Post-Petition Lender shall acquire the New Equity subject to the Subscription
Option, free and clear of all Liens, Claims, Equity Interests and encumbrances of any kind, except as otherwise provided in the Plan, and (d) no material adverse change or development shall have occurred with respect to the Debtor’s IP or
capital structure of the Debtor. 
 13.3 Exemption from Transfer Taxes 

The Plan and the Confirmation Order provide for (a) the issuance, transfer or exchange of notes, debt instruments and equity securities
under or in connection with the Plan; (b) the creation, assignment, recordation or perfection of any lien, pledge, other security interest or other instruments of transfer; (c) the making or assignment of any lease; (d) the creation,
execution and delivery of any agreements or other documents creating or evidencing the formation of the Reorganized Debtor or the issuance or ownership of any interest in the Reorganized Debtor; or (e) the making or delivery of any deed or
other instrument of transfer under the Plan in connection with the vesting of the Estate’s assets in the Reorganized Debtor or the Distribution 

  
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Trust pursuant to or in connection with the Plan, including, without limitation, merger agreements, stock purchase agreement, agreements of consolidation, restructuring, disposition, liquidation
or dissolution, and transfers of tangible property. Pursuant to section 1146 of the Bankruptcy Code and the Plan, any such act described or contemplated herein will not be subject to any stamp tax, transfer tax, filing or recording tax, or other
similar tax. 
 13.4 Securities Exemption 

Any rights issued under, pursuant to or in effecting the Plan, including, without limitation, the New Equity in the Reorganized Debtor or the
Beneficial Interests in the Distribution Trust, and the offering and issuance thereof by any party, including without limitation the Proponents or the Estate, shall be exempt from Section 5 of the Securities Act of 1933, if applicable, and from
any state or federal securities laws requiring registration for offer or sale of a security or registration or licensing of an issuer of, underwriter of, or broker or dealer in, a security, and shall otherwise enjoy all exemptions available for
Distributions of securities under a plan of reorganization in accordance with all applicable law, including without limitation section 1145 of the Bankruptcy Code. If the issuance of the New Equity does not qualify for an exemption under section
1145 of the Bankruptcy Code, the New Equity shall be issued in a manner, which qualifies for any other available exemption from registration, whether as a private placement under Rule 506 of the Securities Act, Section 4(2) of the Securities
Act, and/or the safe harbor provisions promulgated thereunder. 
 13.5 Defects, Omissions and Amendments of the Plan 

The Proponents may, with the approval of the Bankruptcy Court and without notice to holders of Claims and Equity Interests, insofar as it does
not materially and adversely affect holders of Claims and Equity Interests, correct any defect, omission, or inconsistency in the Plan in such a manner and to such extent necessary or desirable to expedite the execution of the Plan. The Proponents
may propose amendments or alterations to the Plan before the Confirmation Hearing as provided in section 1127 of the Bankruptcy Code if, in the opinion of the Bankruptcy Court, the modification does not materially and adversely affect the interests
of holders of Claims and Equity Interests, so long as the Plan, as modified, complies with sections 1122 and 1123 of the Bankruptcy Code and the Chapter 11 Trustee has complied with section 1125 of the Bankruptcy Code. The Proponents may propose
amendments or alterations to the Plan after the Confirmation Date but prior to substantial consummation, in a manner that, in the opinion of the Bankruptcy Court, does not materially and adversely affect holders of Claims and Equity Interests, so
long as the Plan, as modified, complies with sections 1122 and 1123 of the Bankruptcy Code, the Proponents have complied with section 1125 of the Bankruptcy Code, and after notice and a hearing, the Bankruptcy Court confirms such Plan, as modified,
under section 1129 of the Bankruptcy Code. 

  
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 13.6 Withdrawal of Plan 

The Proponents reserve the right to withdraw the Plan at any time prior to the Confirmation Date. If the Proponents withdraw the Plan prior to
the Confirmation Date, or if the Confirmation Date or the Effective Date does not occur, then the Plan shall be deemed null and void. In such event, nothing contained herein shall be deemed to constitute an admission, waiver or release of any claims
by or against the Debtor or any other person, or to prejudice in any manner the rights of the Chapter 11 Trustee, the Debtor’s Estate, or any person in any further proceedings involving the Debtor. 

13.7 Due Authorization By Holders of Claims and Equity Interests 

Each and every holder of a Claim or Equity Interest who elects to participate in the Distributions provided for herein warrants that such
holder is authorized to accept in consideration of its Claim or Equity Interest against the Debtor the Distributions provided for in the Plan, and that there are no outstanding commitments, agreements, or understandings, express or implied, that may
or can in any way defeat or modify the rights conveyed or obligations undertaken by such holder under the Plan. 
 13.8 Filing of
Additional Documentation 
 By [            ], 2016, the Debtor may file with
the Bankruptcy Court such Plan Supplement, agreements and other documents as may be reasonably necessary or appropriate to effectuate and further evidence the terms and conditions of the Plan or any Plan Document, which shall also constitute
“Plan Documents.” 
 13.9 Governing Law 

Except to the extent the Bankruptcy Code or the Bankruptcy Rules are applicable, the rights and obligations arising under the Plan shall be
governed by, and construed and enforced in accordance with the laws of the State of Delaware, without giving effect to the principles of conflicts of law thereof. 

13.10 Successors and Assigns 

The rights, benefits and obligations of any entity named or referred to in the Plan or any Plan Document shall be binding on, and shall inure
to the benefit of, any heir, executor, administrator, successor or assign of such entity. 
 13.11 Transfer of Claims and Equity
Interests 
 Any transfer of a Claim shall be in accordance with Bankruptcy Rule 3001(e) and the terms of this Section 13.11. Notice
of any such transfer shall be forwarded to the Chapter 11 Trustee by registered or certified mail, as set forth in Section 13.12 hereof. Both the transferee 

  
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and transferor shall execute any notice, and the signatures of the parties shall be acknowledged before a notary public. The notice must clearly describe the interest in the Claim to be
transferred. No transfer of a partial interest shall be allowed. All transfers must be of one hundred percent (100%) of the transferor’s interest in the Claim. 

Any transfer of an Equity Interest shall be in accordance with the Equity Trading Order, and no transfer of Equity Interests shall be allowed
after the Voting Record Date. 
 13.12 Notices 

Any notice required to be given under the Plan or any Plan Document shall be in writing. Any notice that is allowed or required hereunder
except for a notice of change of address shall be considered complete on the earlier of (a) three (3) days following the date the notice is sent by United States mail, postage prepaid, or by overnight courier service, or in the case of
mailing to a non-United States address, air mail, postage prepaid, or personally delivered; (b) the date the notice is actually received by the Persons on the Post-Confirmation Service List by facsimile or computer transmission; or
(c) three (3) days following the date the notice is sent to those Persons on the Post-Confirmation Service List as it is adopted by the Bankruptcy Court at the hearing on confirmation of the Plan, as such list may be amended from
time-to-time by written notice from the Persons on the Post-Confirmation Service List. 
  

	 	(a)	If to the Chapter 11 Trustee, at: 

 David W. Carickhoff 

300 Delaware Avenue, Suite 1100 

Wilmington, DE 19801 
 Email:
dcarickhoff@archerlaw.com 
 Fax: 302-777-4352 

and 
 Archer & Greiner,
P.C. 
 Attn: Alan M. Root 
 300
Delaware Avenue, Suite 1100 
 Wilmington, DE 19801 

Email: aroot@archerlaw.com 
 Fax:
302-777-4352 
  

	 	(b)	If to the Plan Sponsor, at: 

 ESW Capital, LLC 

c/o Haynes and Boone, LLP 
 1221
McKinney Street, Suite 2100 
 Houston, Texas 77010 

Attention: Charles A. Beckham, Jr. 

Email: charles.beckham@haynesboone.com 

Fax: 713-236-5638 

  
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 and 

30 Rockefeller Plaza, 26th Floor 

New York, NY 10112 
 Attention:
Trevor R. Hoffmann 
 Email: trevor.hoffmann@haynesboone.com 

Fax: 212-884-9558 
  

	 	(c)	If to the Post-Petition Lender, at: 

 ESW Capital, LLC 

c/o Haynes and Boone, LLP 
 1221
McKinney Street, Suite 2100 
 Houston, Texas 77010 

Attention: Charles A. Beckham, Jr. 

Email: charles.beckham@haynesboone.com 

Fax: 713-236-5638 
 and 

30 Rockefeller Plaza, 26th Floor 

New York, NY 10112 
 Attention:
Trevor R. Hoffmann 
 Email: trevor.hoffmann@haynesboone.com 

Fax: 212-884-9558 
  

	 	(d)	If to the U.S. Trustee, at: 

  

	 	(e)	If to the Distribution Trust, at 

 and 

 

	 	(f)	If to any Creditor or Interest Holder in his capacity as such, at his address or facsimile number as listed on the Post-Confirmation Service List. 

13.13 U.S. Trustee Fees 

The Chapter 11 Trustee will pay pre-confirmation fees owed to the U.S. Trustee on or before the Effective Date of the Plan. After confirmation,
the Distribution Trustee will file with the court and serve on the U.S. Trustee quarterly financial reports in a format prescribed by the U.S. Trustee, and the Distribution Trustee will pay post-confirmation quarterly fees to the U.S. Trustee until
a final decree is entered or the case is converted or dismissed as provided in 28 U.S.C. § 1930(a)(6). In no event will the Reorganized Debtor be responsible for any U.S. Trustee fees. 

  
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 13.14 Implementation 

The Chapter 11 Trustee, the Reorganized Debtor, the Plan Sponsor, and the Distribution Trustee shall be authorized to perform all reasonable,
necessary and authorized acts to consummate the terms and conditions of the Plan and the Plan Documents, without further order from the Bankruptcy Court. 

13.15 No Admissions 

Notwithstanding anything herein to the contrary, nothing contained in the Plan shall be deemed an admission by the Chapter 11 Trustee, the
Debtor, or the Estate with respect to any matter set forth herein, including, without limitation, liability on any Claim or Equity Interest or the propriety of the classification of any Claim or Equity Interest. 

ARTICLE XIV 
 SUBSTANTIAL
CONSUMMATION 
 14.1 Substantial Consummation 

The Plan shall be deemed substantially consummated on the Effective Date. 

[Remainder of Page Intentionally Left Blank] 

  
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 14.2 Final Decree 

On full consummation and performance of the Plan and Plan Documents, the Distribution Trustee may request the Bankruptcy Court to enter a final
decree closing the Bankruptcy Case and such other orders that may be necessary and appropriate. 
 Dated: June 17, 2016 

 

	
	WAVE SYSTEMS CORP.
	
	 /s/ David W. Carickhoff

	 David W. Carickhoff
 Chapter 11
Trustee

	300 Delaware Avenue, Suite 1100
	Wilmington, DE 19803
	Chapter 11 Trustee and Proponent
	
	ESW CAPITAL, LLC
	
	 /s/ Andrew Price

	Andrew Price
	Chief Financial Officer
	401 Congress Ave., Suite 2650
	Austin, Texas 78701
	Plan Sponsor and Proponent

  
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 EXHIBIT A 

Glossary of Defined Terms 

“401(k) Plan” means the Wave Systems Corp. 401(k) Savings and Investment Plan. 

“Administrative Claim” means any cost or expense of administration of the Bankruptcy Case incurred on or before the Effective
Date entitled to priority under section 507(a)(1) and allowed under section 503(b) of the Bankruptcy Code, including without limitation, any actual and necessary expenses of preserving the Debtor’s estate, including wages, salaries or
commissions for services rendered after the commencement of the Bankruptcy Case, certain taxes, fines and penalties, any actual and necessary postpetition expenses of operating the business of the Debtor, certain postpetition indebtedness or
obligations incurred by or assessed against the Debtor in connection with the conduct of its business, or for the acquisition or lease of property, or for providing of services to the Debtor, including all allowances of compensation or reimbursement
of expenses to the extent allowed by the Bankruptcy Court under the Bankruptcy Code, and any fees or charges assessed against the Debtor’s Estate under Chapter 123, Title 28, United States Code. With respect to quarterly U.S. Trustee fees, the
Debtor shall pay, from the Distribution Reserve, any accrued such fees on the Effective Date and timely pay all post-confirmation quarterly fees as they accrue until the date of the closing of the Bankruptcy Case. Professional Compensation Claims
shall only be Allowed for duly employed Professionals in the Bankruptcy Case in accordance with applicable law. For the avoidance of doubt, the Allowed Post-Petition Lender Financing Claim shall be deemed to be an Administrative Claim for all
purposes hereunder. 
 “Administrative Claim Bar Date” means the first Business Day that is ten (10) days after the
Confirmation Hearing. 
 “Administrative Claimant” means any Person entitled to payment of an Administrative Claim. 

“Administrative Tax Claim” means an Administrative Claim of a Governmental Unit. 

“Allowance Date” means the date that a Claim or Equity Interest becomes an Allowed Claim or Allowed Equity Interest. 

“Allowed” means, (1) with respect to any Claim, a Claim allowable under 11 U.S.C. § 502 (a) for which a proof
of claim was filed on or before, as applicable, the General Bar Date, the Governmental Unit Bar Date, the Administrative Claim Bar Date or the Rejection Claim Bar Date, and as to which no objection or other challenge to the allowance thereof has
been timely Filed, or if an objection or challenge has been timely Filed, such Claim is allowed by a Final Order; or (b) for which a proof of claim is not filed and that has been listed in the Schedules of Assets and Liabilities and is not
listed as disputed, contingent, or unliquidated; or (c) that is deemed allowed by the terms of the Plan; or (2) with respect to any Equity Interest, such Equity Interest is reflected as outstanding in the stock transfer ledger or similar
register or record of the Debtor on the Petition Date. For purposes of determining the amount of an Allowed Claim (other than a Claim specifically Allowed under the Plan), there shall be deducted therefrom an

  
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amount equal to the amount of any Claim that the Debtor may hold against the Creditor under 11 U.S.C. § 553. Notwithstanding anything to the contrary in the Plan, the Debtor may, in its
discretion, treat a Claim as an Allowed Claim to the extent it is allowed by an Order that is not a Final Order. 
 “Approved
Budget” means the Budget agreed to by the Debtor and the Post-Petition Lender and attached as Exhibit A to the Post-Petition Note (as may be amended or otherwise modified from time to time pursuant to the terms of the Post-Petition
Financing Order). 
 “Available Cash” means all of the Cash held by the Reorganized Debtor including Cash deposited or held
in the Distribution Reserve on account of disputed or undetermined Administrative Claims, Priority Tax Claims, Priority Unsecured Non-Tax Claims, General Unsecured Claims, and Intercompany Claims to the extent that those Claims are disallowed in
whole or in part after the Effective Date, less the Distribution Reserve. 
 “Avoidance Actions” means any and all rights,
claims, and causes of action arising under any provision of Chapter 5 of the Bankruptcy Code. 
 “Ballot” means the form of
ballot which the Debtor will transmit to Creditors who are, or may be, entitled to vote on the Plan. 
 “Bankruptcy Case”
means In re Wave Systems Corporation., Case No. 16-10284 in the United States Bankruptcy Court for the District of Delaware, and as applicable, the Chapter 11 Case and/or the Chapter 7 Case. 

“Bankruptcy Code” means the Bankruptcy Reform Act of 1978, as amended, Title 11, United States Code, as applicable to this
Bankruptcy Case. 
 “Bankruptcy Court” means the United States Bankruptcy Court for the District of Delaware, together with
the District Court as to matters as to which the reference is withdrawn under 11 U.S.C. § 157(d). 
 “Bankruptcy
Rules” means the Federal Rules of Bankruptcy Procedure. 
 “Beneficial Interest” means an interest that entitles
the holder thereof to a Distribution in accordance with the Distribution Trust Agreement. 
 “Beneficiary” means the holder
of a Beneficial Interest, whether individually or as agent on behalf of other entities. 
 “Business Day” means any day
other than a Saturday, Sunday, or a “legal holiday” (as defined in Bankruptcy Rule 9006(a)). 
 “Cash” means
Cash, wire transfer, certified check, cash equivalents and other readily marketable securities or instruments, including, without limitation, readily marketable direct obligations of the United States of America, certificates of deposit issues by
banks, and commercial paper of any Person, including interest accrued or earned thereon. 

  
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 “Cash Consideration” means $6,875,000, payable by the Plan Sponsor on the
Effective Date, which amount is inclusive of the Enhanced Deposit. 
 “Chapter 7 Case” means the Bankruptcy Case of the
Debtor under Chapter 7 of the Bankruptcy Code. 
 “Chapter 7 Trustee” means David W. Carickhoff, in his capacity as the
chapter 7 trustee of the Debtor in the Chapter 7 Case. 
 “Chapter 11 Case” means the Bankruptcy Case of the Debtor under
Chapter 11 of the Bankruptcy Code. 
 “Chapter 11 Trustee” means David W. Carickhoff, in his capacity as the chapter 11
trustee of the Debtor in the Chapter 11 Case. 
 “Charter Documents” means the articles of certificate of incorporation and
the bylaws of the Debtor or Reorganized Debtor, as applicable, and any amendments to the foregoing. 
 “Claim” has the
meaning assigned to such term by section 101(5) of the Bankruptcy Code. 
 “Claim Objection Deadline” means the first
Business Day that is 180 days after the Effective Date, as may be extended by order of the Bankruptcy Court. 
 “Class”
means one of the classes of Claims or Equity Interests defined in Article III of the Plan. 
 “Clerk” means the Clerk of
the Bankruptcy Court. 
 “Closing” means the closing of the transactions contemplated under Article VI of the Plan. 

“Confirmation Date” means the date upon which the Clerk of the Bankruptcy Court enters the Confirmation Order on the docket
of the Bankruptcy Court. 
 “Confirmation Hearing” means the hearing held by the Bankruptcy Court pursuant to section 1128
of the Bankruptcy Code to consider confirmation of this Plan, as such hearing may be adjourned or continued from time to time. 

“Confirmation Order” means the Order of the Bankruptcy Court approving and confirming the Plan in accordance with the
provisions of Chapter 11 of the Bankruptcy Code. 

  
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 “Creditor” means any person that holds a Claim against the Debtor that arose
on or before the Effective Date, or a Claim against the Debtor of any kind specified in sections 502(f), 502(g), 502(h) or 502(i) of the Bankruptcy Code. 

“Cure Amount” means the amount of Cash required to cure defaults necessary to assume an Executory Contract under 11 U.S.C.
§ 365(b) as determined by the Bankruptcy Court or pursuant to any agreement among the Reorganized Debtor and the other party(ies) to the Executory Contract and as listed in the Schedule of Assumed Contracts and Unexpired Leases 

“Cure Amount Objection Bar Date” means
[                    ]. 

“Debtor” means Wave Systems Corp. a Delaware corporation and a debtor in the Bankruptcy Case. 

“Disallowed Claim” means a Claim, or any portion thereof, that (a) has been disallowed by either a Final Order or
pursuant to a settlement, or (b)(i) is listed in the Schedules of Assets and Liabilities at zero or as contingent, disputed or unliquidated, including by amendment hereby of such Schedules of Assets and Liabilities, and (ii) as to which a bar
date has been established but no proof of claim has been filed or deemed timely filed with the Bankruptcy Court pursuant to either the Bankruptcy Code, any Final Order, or applicable law, or which is not deemed allowed by the terms of the Plan. 

“Disclosure Statement” means the Disclosure Statement for the Plan of Reorganization of Wave Systems Corp. dated June
    , 2016, filed by the Proponents with the Bankruptcy Court, as may be amended or supplemented. 

“Disclosure Statement Approval Date” means the date the Order Approving Disclosure Statement is entered on the docket of the
Bankruptcy Case. 
 “Disputed Claim” means a Claim as to which a proof of claim or interest has been Filed or deemed Filed
under applicable law, as to which an objection has been or may be timely Filed and which objection, if timely Filed, has not been withdrawn on or before any date fixed for Filing such objections by the Plan or Order of the Bankruptcy Court and has
not been overruled or denied by a Final Order. Prior to the time that an objection has been or may be timely Filed, for the purposes of the Plan, a Claim shall be considered a Disputed Claim to the extent that: (i) the amount of the Claim
specified in the proof of claim exceeds the amount of any corresponding Claim in the Schedules of Assets and Liabilities to the extent of such excess; (ii) no corresponding Claim has been scheduled in the Schedules of Assets and Liabilities; or
(iii) the Claim has been scheduled in the Schedules of Assets and Liabilities as contingent, disputed or unliquidated or in the amount of $0. 

“Disputed Cure Amount” means, with respect to an Executory Contract for which a Proof of Cure Claim is filed, the amount that
the counterparty to such Executory Contract asserts is necessary to assume such Executory Contract under 11 U.S.C. § 365(b). 

  
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 “Distribution” means, except as otherwise provided in the Plan, the property
required by the Plan to be distributed to the holders of Allowed Claims. 
 “Distribution Date” means any date that a
Distribution is made under the Plan or the Distribution Trust Agreement. 
 “Distribution Record Date” means the
Confirmation Date. 
 “Distribution Reserve” means a reserve established to hold, in one or more segregated accounts to be
established by the Debtor, Cash equal to the aggregate of (a) Cash that would have been distributed on the Distribution Date on account of Disputed or undetermined (i) Administrative Claims had they been Allowed Claims, provided that with
respect to Administrative Claims for which applications for compensation of professionals or other periods retained or to be compensated pursuant to sections 327, 328, 330, 331 and 503(b) of the Bankruptcy Code are or will be pending but are then
undetermined, the amount of Cash deposited shall be the amount sought by such persons or the maximum amount such persons indicate that they intend to apply for, and provided that with respect to Administrative Claims for which applications for
compensation of the Chapter 7 Trustee or the Chapter 11 Trustee are or will be pending but are then undetermined, the amount of Cash deposited shall be the amount sought by such persons or the maximum amount such persons indicate that they intend to
apply for, (ii) Priority Unsecured Non-Tax Claims, (iii) Secured Claims, (iv) General Unsecured Claims, (v) Intercompany Claims and (v) Equity Interests , plus (b) accrued interest on all Cash in the Distribution
Reserve, plus (c) Cash in the amount of all taxes previously incurred by the Debtor (and not paid or otherwise provided for under the Plan) and all taxes and professional fees estimated to be incurred by the Reorganized Debtor, including
professional fees of the Reorganized Debtor; plus (d) Cash in the amount of all estimated costs and expenses of effectuating the actions and duties of the Distribution Trustee, including under Articles VI and XIII of the Plan. 

“Distribution Trust” means the trust established under the Plan and the Distribution Trust Agreement. 

“Distribution Trust Account” means the segregated interest bearing account established by the Distribution Trust into which
shall be deposited (a) the Distribution Trust Fund, (b) the proceeds of the Distribution Trust Actions, and (c) the proceeds of the liquidation of all other Distribution Trust Assets. 

“Distribution Trust Actions” means the Avoidance Actions and Estate Actions held by the Debtor and/or the Estate on the
Effective Date, except for any cause of action against the Protected Action Parties, and transferred to the Distribution Trust at the Closing. 

“Distribution Trust Agreement” means the trust agreement that establishes the Distribution Trust and governs the powers,
duties, and responsibilities of the Distribution Trustee. The Distribution Trust Agreement shall be part of the Plan Supplement. 

  
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 “Distribution Trust Assets” means, collectively, (a) the Distribution
Trust Actions, (b) the Distribution Trust Fund, and (c) the SED Patents, subject to the License. 
 “Distribution Trust
Available Cash” means the cash on deposit in the Distribution Trust Account at any time, less the Distribution Trust Operating Reserve. 

“Distribution Trust Fund” means the Cash Consideration less any amounts paid by the Debtor on the Effective Date. 

“Distribution Trust Operating Expenses” means the reasonable costs and expenses, including professional fees, of the
Distribution Trustee in administering the Distribution Trust. 
 “Distribution Trust Operating Reserve” means such reserve
of Cash determined from time to time by the Distribution Trustee pursuant to the Distribution Trust Agreement to be reasonably necessary to pay Distribution Trust Operating Expenses, including (a) the unpaid liabilities, debts, or obligations
of the Distribution Trust; (b) the fees and expenses of the Distribution Trustee; (c) all fees and expenses of professionals retained by the Distribution Trust; and (d) any and all other costs associated with the liquidation or
preservation of the Distribution Trust Assets. 
 “Distribution Trustee” means the Person appointed to administer the
Distribution Trust with such rights, duties, and obligations as set forth in the Distribution Trust Agreement. 
 “District
Court” means the United States District Court for the District of Delaware. 
 “Effective Date” means the first
Business Day following the Confirmation Date on which (a) the Confirmation Order is not stayed, (b) all conditions to the effectiveness of the Plan have been satisfied or waived as provided in the Plan, and (c) the Reorganized Debtor
has Filed a notice of the Effective Date. 
 “Enhanced Deposit” means Cash paid by the Plan Sponsor in the amount of
$3,800,000, on April 4, 7, and 12, 2016, to the Chapter 7 Trustee and subsequently held by the Chapter 11 Trustee. 
 “Equity
Interest” means any interest in the Debtor represented by ownership of common or preferred stock, including, to the extent provided by applicable law, any purchase right, warrant, stock option or other equity or debt security (convertible
or otherwise) evidencing or creating any right or obligation to acquire or issue any of the foregoing. 
 “Equity Trading
Order” means the Final Order Establishing Notification and Hearing Procedures for Trading in Equity Securities (Doc. No. 127). 

“Estate” means the estate created upon the filing of the Bankruptcy Case pursuant to section 541 of the Bankruptcy Code,
together with all rights, claims and interests appertaining thereto. 

  
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 “Estate Actions” means causes of actions held by the Estate. 

“Estate Property” means all right, title, and interest in and to any and all property of every kind or nature owned by the
Debtor or its Estate on the Effective Date as defined by 11 U.S.C. § 541. 
 “Estimated Professionals Amount” means
the fees and expenses payable to Estate professionals under the Approved Budget, but not drawn under Post-Petition Note, and estimated by the Chapter 11 Trustee, in good faith, to be likely to be approved by Court order and payable to such Estate
professionals. 
 “Estimated Liabilities Amount” means Ordinary Course Liabilities under the Approved Budget, but not drawn
under Post-Petition Note, and estimated by the Chapter 11 Trustee, in good faith, to be likely payable to such Ordinary Course Creditors. 

“Executory Contracts” means executory contracts and unexpired leases as such terms are used in 11 U.S.C. § 365,
including all operating leases, capital leases, and contracts to which the Debtor is a party or beneficiary on the Confirmation Date. 

“File or Filed” means a request for relief encompassed within a pleading or other document is Filed when and on such date as
such pleading or other document is entered on the docket of the Bankruptcy Court in this Bankruptcy Case. A proof of claim is Filed when and on such date as such proof of claim is entered on the claims register in this Bankruptcy Case. 

“Final Borrowing Notice” means the final borrowing notice provided for under the Post-Petition Financing Order and Post-Petition Note, which shall include the Estimated Professionals Amount, the Estimated Liabilities Amount and any amounts under 28 U.S.C. § 1930 estimated to be incurred through the Effective Date, but not
to exceed amounts provided for under the Approved Budget. 
 “Final Order” means an order or judgment which has not been
reversed, stayed, modified, or amended and as to which the time for appeal has expired and no stay has been obtained. 
 “Financing
Consideration” means the consideration payable by the Plan Sponsor to pay off the Allowed Post-Petition Lender Financing Claim, which may be reduced on a dollar-for-dollar basis to reflect the amount of Allowed Post-Petition Lender
Financing Claim exchanged for New Equity pursuant to the Subscription Option. For the avoidance of doubt, the Plan Sponsor and the Post-Petition Lender, to the extent they are both the same entity, may agree
to satisfy the Allowed Post-Petition Lender Financing Claim without having to fund actual Cash from the Plan Sponsor to the Post-Petition Lender. 

“General Bar Date” means the deadline for filing proofs of claim established by the Bankruptcy Court as
[            ], 2016 at 4:00 p.m. prevailing Eastern time. 

  
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 “General Unsecured Claim” means a Claim other than an Administrative Claim,
a Priority Unsecured Non-Tax Claim, a Priority Tax Claim, or an Intercompany Claim. 
 “Governmental Unit” means United
States; State; Commonwealth; District; Territory; municipality; department, agency, or instrumentality of the United States (but not a U.S. trustee while serving as a trustee in a case under title 11 of the United States Code), a State, a
Commonwealth, a District, a Territory, or a municipality; or other domestic government. 
 “Insider” has the meaning set
forth in section 101(31) of the Bankruptcy Code. 
 “Intercompany Claim” means a Claim held by, asserted by, or assertable
by any former or present affiliate of the Debtor, other than an Administrative Claim, a Priority Unsecured Non-Tax Claim, or a Priority Tax Claim. 

“Interest Holder” means any record or beneficial holder or owner of an Equity Interest. 

“IP” means intellectual property, including, without limitation, the following: (i) all patents and patent applications,
domestic or foreign, all licenses relating to any of the foregoing and all income and royalties with respect to any licenses, all rights to sue for past, present or future infringement thereof, all rights arising therefrom and pertaining thereto and
all reissues, divisions, continuations, renewals, extensions and continuations-in-part thereof; (ii) all copyrights and applications for copyright, domestic or foreign, together with the underlying works of authorship (including titles),
whether or not the underlying works of authorship have been published and whether said copyrights are statutory or arise under the common law, and all other rights and works of authorship, all computer programs, computer databases, computer program
flow diagrams, source codes, object codes and all tangible property embodying or incorporating any copyrights, all licenses relating to any of the foregoing and all income and royalties with respect to any licenses, and all other rights, claims and
demands in any way relating to any such copyrights or works, including royalties and rights to sue for past, present or future infringement, and all rights of renewal and extension of copyright; (iii) all state (including common law), federal
and foreign trademarks, service marks and trade names, and applications for registration of such trademarks, service marks and trade names, all licenses relating to any of the foregoing and all income and royalties with respect to any licenses,
whether registered or unregistered and wherever registered, all rights to sue for past, present or future infringement or unconsented use thereof, all rights arising therefrom and pertaining thereto and all reissues, extensions and renewals thereof;
(iv) all trade secrets, trade dress, trade styles, logos, other source of business identifiers, mask-works, mask-work registrations, mask-work applications, software, confidential and proprietary information, customer lists, license rights,
advertising materials, operating manuals, methods, processes, know-how, algorithms, formulae, databases, quality control procedures, product, service and technical specifications, operating, production and quality control manuals, sales literature,
drawings, specifications, blue prints, descriptions, inventions, name plates, catalogs, internet websites, and internet domain names and associated URL addresses; (v) the entire goodwill of or associated with the businesses now or hereafter
conducted by the Debtor connected with and symbolized by any of the aforementioned properties and assets; and (vi) all accounts, payment intangibles, commercial tort claims and other rights to payment, all other proprietary rights or other
intellectual or other similar property, and all other general intangibles associated with or arising out of any of the aforementioned properties and assets and not otherwise described above, and all proceeds of any IP. 

  
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 “License” means a license on the terms and conditions provided for on
Exhibit 1 to this Glossary. 
 “Lien” means a charge against or interest in property to secure payment of a debt or
performance of an obligation which has not been avoided or invalidated under any provision of the Bankruptcy Code or other applicable law. 

“New Equity” means the all of the equity interest in the Reorganized Debtor, issued on the Effective Date, to the Plan
Sponsor, and to the Post-Petition Lender under and subject to the Subscription Option, in the total amount of 1,000 shares, free and clear of all Liens, Claims and encumbrances of any kind, except as provided in the Plan. 

“Objection to Cure Amount” means the document filed in the Bankruptcy Court by a counterparty to an Executory Contract
required in the event that such counterparty disputes the Cure Amount identified in the Schedule of Assumed Contracts and Unexpired Leases. 

“Ordinary Course Creditor(s)” means a Creditor with an Ordinary Course Liability. 

“Ordinary Course Liability” means an Administrative Claim (other than a Professional Compensation Claim or an Administrative
Tax Claim) based on liabilities incurred in the ordinary course of the Debtor’s business operations solely to the extent provided for in the Approved Budget. 

“Person” means an individual, a corporation, a partnership, an association, a joint stock company, a joint venture, an
estate, a trust, an unincorporated association or organization, a governmental unit or any agency or subdivision thereof or any other entity, and the Protected Parties. 

“Petition Date” means February 1, 2016, the date on which the Debtor filed its voluntary Chapter 7 petition commencing
the Bankruptcy Case. 
 “Plan” means this Plan of Reorganization of the Debtor, as it may be amended or modified. 

“Plan Consideration” means the Cash Consideration and the Financing Consideration. 

“Plan Documents” means, collectively, those material documents executed or to be executed in order to consummate the
transactions contemplated under the Plan, which will be filed with the Bankruptcy Court on or before [            ], 2016, including the Distribution Trust Agreement and any other documents
that make up the Plan Supplement. 
 “Post-Petition Financing” means the post-petition financing provided by the
Post-Petition Lender pursuant to the Post-Petition Financing Order 

  
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 “Post-Petition Financing Order” means the interim financing order (Doc.
No. 150), and the final financing order (Doc. No. [                    ]). 

“Post-Petition Lender” means ESW Capital, LLC, in its capacity as post-petition lender under the Post-Petition Note. 

“Post-Petition Lender Financing Claim” means the Administrative Claim of the Post-Petition Lender under the Post-Petition
Note. The Post-Petition Lender Financing Claim is Allowed in full. 
 “Post-Petition Note” means the Senior Secured
Super-Priority Post-Petition Financing Note, dated as of May 26, 2016, by and between the Debtor and the Post-Petition Lender and approved under the Post-Petition Financing Order, as amended, supplemented or otherwise modified. 

“Plan Sponsor” means ESW Capital, LLC or an affiliate, in such capacity. 

“Plan Supplement” means, collectively, any such documents as are referenced as such in this Plan to be Filed hereafter to
supplement or clarify aspects of the Plan. 
 “Plan Supplement Deadline” means five (5) business days before the Plan
confirmation hearing. 
 “Post-Confirmation Service List” means the list of those parties who have notified the Reorganized
Debtor in writing, at or following the Confirmation Hearing, of their desire to receive electronic notice of all pleadings filed by the Reorganized Debtor and have provided the e-mail address to which such notices shall be sent. 

“Priority Unsecured Non-Tax Claim” means any Claim (other than an Administrative Claim, Priority Tax Claim or an Intercompany
Claim) to the extent entitled to priority in payment under section 507(a) of the Bankruptcy Code. 
 “Priority Tax Claim”
means any Claim held by a Governmental Unit entitled to priority in payment under section 507(a)(8) of the Bankruptcy Code. 
 “Pro
Rata Share” means as to a particular holder of a particular Claim, the ratio that the amount of such Claim held by such Claimholder bears to the aggregate amount of all Claims in the particular Class or category. Such ratio shall be
calculated as if all Claims in the particular Class or category asserted against Debtor are Allowed Claims as of the Effective Date, unless specifically provided otherwise in the Plan. 

“Professional” means a professional employed in the Bankruptcy Case pursuant to Final Order under sections 327, 328, 363, or
1103 of the Bankruptcy Code; provided that for the purposes of any bar dates, duties or other requirements imposed by the Plan (as distinguished from benefits or rights provided by or pursuant to the Plan), any professional not so employed in 

  
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the Bankruptcy Case, but asserting any right or claim like a Professional on account of any service for or engagement by any foreign representative or foreign proceeding, shall have to comply
with such same bar dates, duties and requirements as a Professional as one condition precedent to seeking any standing in the Bankruptcy Case, any Allowance of any Claim or any other right under the Plan like a Professional, with the Reorganized
Debtor and other parties in interest reserving all other challenges and defenses thereto. 
 “Professional Compensation
Claim” means a Claim for compensation or reimbursement of expenses of a Professional retained in the Bankruptcy Case or any Chapter 11 trustee, and requested in accordance with the provisions of 11 U.S.C. §§ 326, 327, 328, 330,
331, 503(b) and 1103; provided that for the purposes of any Claim asserted by any professional not so employed in the Bankruptcy Case, but asserting any Claim like a Professional on account of any service for or engagement by any foreign
representative or foreign proceeding, the holder of such Claim shall have to comply with the same bar dates, duties and requirements as the holder of a Professional Compensation Claim as one condition precedent to seeking any standing or treatment
as such, with the Reorganized Debtor and other parties in interest reserving all other challenges and defenses thereto. 

“Protected Action Parties” (each one, a “Protected Action Party”) means any and all customers, vendors and
employees of the Debtor, unless otherwise expressly designated in writing by the Plan Sponsor or Reorganized Debtor in its sole discretion. 

“Proponents” means the Plan Sponsor and the Debtor, in their capacity as proponents of the Plan. 

“Protected Parties” (each one, a “Protected Party”) means (a) the Debtor; (b) the Chapter 11
Trustee; (c) the Chapter 7 Trustee; (d) the Reorganized Debtor; (e) the Distribution Trust; (f) the Distribution Trustee; (g) the Plan Sponsor and its affiliates; (h) the Post-Petition Lender; and (i)directors,
officers, agents, attorneys, accountants, consultants, equity holders, financial advisors, investment bankers, professionals, experts, and employees of any of the foregoing, in their respective capacities as such. Any affiliate or other party
related to any Protected Party shall also be a Protected Party to the extent that such affiliate or related party is alleged or charged to be directly or indirectly liable on any derivative, vicarious liability, alter ego or other theory for
imposing liability on an affiliate or related party for the conduct or liability of the Protected Party. For the avoidance of doubt, the target of any Distribution Trust Avoidance Action shall not be, and is not, a Protected Party. 

“Qualified Ordinary Course Creditor” means of the Ordinary Course Creditors, the Post-Petition Lender. 

“Rejection Claim Bar Date” means either (as applicable) (i) in respect to Executory Contracts rejected pursuant to a
revocation notice filed pursuant to Section 8.3(b) of the Plan, the date that is thirty (30) days after the filing of such revocation notice, or (ii) as to all other Executory Contracts, the date that is thirty (30) days after
the Effective Date. 

  
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 “Released Parties” (each one, a “Released Party”) means
(a) the Chapter 11 Trustee; (b) the Chapter 7 Trustee; (c) the Reorganized Debtor; (d) the Distribution Trust; (e) the Distribution Trustee; (f) the Plan Sponsor and its affiliates; (g) the Post-Petition Lender; and (i) directors, officers, agents, attorneys, accountants, consultants, equity holders, financial advisors, investment bankers, professionals, experts, and employees of any of the
foregoing, in their respective capacities as such. Any affiliate or other party related to any Released Party shall also be a Released Party to the extent that such affiliate or related party is alleged or charged to be directly or indirectly liable
on any derivative, vicarious liability, alter ego or other theory for imposing liability on an affiliate or related party for the conduct or liability of the Released Party. For the avoidance of doubt, the target of any Distribution Trust Avoidance
Action shall not be, and is not, a Released Party solely as to such Distribution Trust Avoidance Action. 
 “Reorganized
Debtor” means the Debtor as it exists after the Effective Date. 
 “Rights of Action” means any and all claims,
debts, demands, rights, defenses, actions, causes of action, suits, contracts, agreements, obligations, accounts, defenses, offsets, powers, privileges, licenses and franchises of any kind or character whatsoever, known or unknown, suspected or
unsuspected, whether arising before, on, or after the Petition Date, in contract or in tort, at law or in equity, or under any other theory of law, of the Debtor or its Estate. 

“Schedule of Assumed Contracts and Unexpired Leases” means the schedule identifying the Executory Contracts and Unexpired
Leases to be assumed by the Reorganized Debtor under the Plan. The Schedule of Assumed Contracts and Unexpired Leases is attached as Exhibit B to the Plan. 

“Schedules of Assets and Liabilities” means the Debtor’s Schedules of Assets and Liabilities, as may be amended or
supplemented, and filed with the Bankruptcy Court in accordance with section 521(a)(1) of the Bankruptcy Code, including as amended by the Plan or any Plan Supplement. 

“Secured Claim” means a claim secured by the Debtor’s assets, except for the Allowed Post-Petition Lender Financing
Claim. 
 “SED Patents” means the United States patents bearing the patent numbers 7036020 and 7426747. 

“Segregated Account” means segregated account(s) established by the Chapter 11 Trustee, and after the Effective Date held by
the Distribution Trust to hold the Estimated Professionals Amount and Estimated Liabilities Amount. 
 “Subordinated Claim”
means any Claim subject to subordination under section 510(b) of the Bankruptcy Code, including, but not limited to, any Claim resulting from or related to the Shareholder Lawsuit. 

“Subscription Option” means the ability of the Qualified Ordinary Course Creditor to, at its option, exchange a total of up
to $1,800,000 of its Allowed Post-Petition Lender Financing 

  
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Claim for up to a total of 600 shares of New Equity at a rate of $3,000 of its Allowed Post-Petition Lender Financing Claim for one (1) share of New Equity. The Plan Sponsor reserves the
right to modify the Subscription Option, provided that (i) no such modification shall adversely the Plan treatment of other creditors and (ii) such modification is approved by the Post-Petition Lender. 

“Treasury Regulations” means the regulations promulgated under the Internal Revenue Code by the Department of the Treasury of
the United States. 
 “U.S. Trustee” means the Office of the United States Trustee for Region 3. 

“Voting Record Date” means July     , 2016 

  
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 EXHIBIT 1 

to the Glossary of Defined Terms 
  

	(a)	Licensor, on behalf of itself and its affiliates, grants to ESW Capital, LLC and the ESW Affiliates (the “Licensee Parties”), their contractors, vendors and suppliers (but only in their capacity as
contractors, vendors and suppliers for or on behalf of Licensee Parties), and their customers (whether direct or indirect) and resellers (but only to the extent of their capacity as customers, and resellers of Licensee Offerings), an irrevocable,
non-royalty bearing, fully paid-up, non-exclusive, non-sublicensable, nontransferable, worldwide license, under the Licensed Patents to practice, design, make, have made, copy, operate, have operated, use, sell, license (Licensee Offerings but not
Licensed Patents), offer to sell or license, import, and otherwise dispose of any and all Licensee Offerings, and to practice any process or method claimed in any of the Licensed Patents for Licensee Offerings. An ESW Affiliate means an entity that
controls, is controlled by or is under common control with ESW Capital, LLC. 

  

	(b)	The liabilities incurred by an entity prior to such entity meeting the definition of an ESW Affiliate are not immunized by the fact that the entity has become an ESW Affiliate. However, upon becoming an ESW Affiliate
the activities, products and services of the ESW Affiliate from that point forward shall be covered by the license set forth herein. 

  

	(c)	If, after the Effective Date, a Licensee Party spins off an ESW Affiliate (either by disposing of it to a third party or in some other manner reducing ownership or control so that the spun-off entity is no longer an ESW
Affiliate) (an” ESW Affiliate Spin Off’); then the Licensee Party, shall have the right to partially assign the license granted hereunder to an ESW Affiliate Spin Off in respect to such Licensee Offerings owned by the applicable ESW
Affiliate at the time of the spin-off, and the license granted to such spun-off entity will continue (subject to the terms of this Agreement) as to only those Licensee Offerings owned by such spun-off ESW Affiliate at the time of the spin-off and
any future upgrades or enhancements thereto (the “ESW Affiliate Products”). For purposes of this provision, any unaffiliated third-party to whom an ESW Affiliate is spun-off or otherwise disposed of shall be considered a
“Purchaser.” In no event shall any license, immunities and other rights following such ESW Affiliate Spin Off apply to or cover Purchaser, including but not limited to any Purchaser products or services (other than the portion that
constitutes ESW Affiliate Products). 

  

	(d)	“Licensee Offering” means any past, present or future technology, specification, platform or any other product or service that is sold, licensed (but not Licensed Patents), offered, imported, exported or
otherwise provided by Licensee Parties. 

  
 1

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