Document:

Lease between the Registrant and Stevens Creek Office Center Associates

 EXHIBIT 10.20 
  
 LEASE 
  
 BY AND BETWEEN 
  
 STEVENS CREEK OFFICE CENTER ASSOCIATES, LANDLORD 
  
 AND 
  
 NETMANAGE, INC., TENANT 
  
 20883 Stevens Creek
Blvd. 
 Cupertino, California 
  
 June 15, 2004 

 TABLE OF CONTENTS 
  

							
	 Paragraph

	  	Page

	 	  	BASIC LEASE INFORMATION	  	i
	 1.
	  	PARTIES	  	1
	 2.
	  	PREMISES	  	1
	 3.
	  	INITIAL TERM	  	1
	 4.
	  	OPTION TO EXTEND	  	1
	 5.
	  	POSSESSION	  	4
	 6.
	  	RENT	  	5
	 7.
	  	ADDITIONAL RENT; DIRECT EXPENSES AND TAXES	  	5
	 8.
	  	LETTER OF CREDIT	  	9
	 9.
	  	USE	  	10
	 10.
	  	HAZARDOUS MATERIALS	  	10
	 11.
	  	COMPLIANCE WITH LAW AND PRIVATE RESTRICTIONS	  	11
	 12.
	  	ALTERATIONS AND ADDITIONS	  	11
	 13.
	  	REPAIRS	  	12
	 14.
	  	LIENS	  	12
	 15.
	  	ASSIGNMENT AND SUBLETTING	  	13
	 16.
	  	HOLD HARMLESS	  	14
	 17.
	  	WAIVER OF SUBROGATION	  	15
	 18.
	  	LIABILITY AND PROPERTY INSURANCE	  	15
	 19.
	  	SERVICES AND UTILITIES	  	16
	 20.
	  	PERSONAL PROPERTY TAXES	  	17
	 21.
	  	RULES AND REGULATIONS	  	17
	 22.
	  	NO RIGHT TO HOLDOVER	  	17
	 23.
	  	ENTRY BY LANDLORD	  	17
	 24.
	  	RECONSTRUCTION	  	18
	 25.
	  	DEFAULT	  	18
	 26.
	  	REMEDIES ON DEFAULT	  	19
	 27.
	  	EMINENT DOMAIN	  	20
	 28.
	  	OFFSET STATEMENTS	  	21
	 29.
	  	PARKING	  	21
	 30.
	  	INTENTIONALLY OMITTED	  	21
	 31.
	  	AUTHORITY OF PARTIES; LIMITATION OF LIABILITY	  	21
	 32.
	  	BROKERS	  	22
	 33.
	  	LANDLORD’S IMPROVEMENTS	  	22
	 34.
	  	REVOCABLE LICENSE AND INDEMNIFICATION FOR USE OF EXERCISE FACILITIES	  	22
	 35.
	  	GENERAL PROVISIONS	  	22
		
	 SCHEDULE OF EXHIBITS
	  	 
				
	 	  	EXHIBIT “A”	  	Description of the Premises	  	 
	 	  	EXHIBIT “B”	  	Tenant Improvements	  	 
	 	  	EXHIBIT “C”	  	Commencement Date Memorandum	  	 
	 	  	EXHIBIT “D”	  	Rules and Regulations	  	 

 J. Volckmann & Associates, Inc. 
  
 BASIC LEASE INFORMATION 
  

			
	LEASE DATE:	  	June 15, 2004 (reference purposes only)
		
	LANDLORD:	  	 Stevens Creek Office Center Associates,
 A
California limited partnership

		
	LANDLORD’S ADDRESS FOR NOTICES:	  	20833 Stevens Creek Blvd, Suite 102 Cupertino, CA 95014
		
	 TELEPHONE/FACSIMILE:
 CONTACT:
	  	 (408) 252-7902 / (408) 252-1233
 Melanie
Roberts

		
	TENANT:	  	NETMANAGE, INC., a Delaware corporation
		
	 TENANT’S ADDRESS
 FOR
NOTICE:
	  	20883 Stevens Creek Blvd. Cupertino, CA 95014
		
	TELEPHONE/FACSIMILE: CONTACT:	  	 (408) 973-7171 / (408) 777-9023
 Ronald
Rudolph

		
	PREMISES:	  	Approximately 24,555 rentable square feet, the location of which is on the land located in the City of Cupertino, County of Santa Clara, more specifically described as 20883 Stevens Creek Blvd.
Cupertino, CA 95014, which is part of the Stevens Creek Office Center. Parking to include the exclusive use of all parking spaces located under the Building and the non-exclusive use of three (3) surface parking spaces located adjacent to the
Building for each 1,000 square feet of the Premises.
		
	 RENTABLE AREA
 OF PREMISES:
	  	Approximately 24,555 rentable square feet (to be confirmed by Tenant)
		
	PROJECT:	  	Stevens Creek Office Center – 107,707 sq. ft. Total Rentable Area
		
	RENT COMMENCEMENT DATE:	  	September 1, 2004.
		
	INITIAL TERM:	  	Sixty (60) months

						
	OPTION TO EXTEND:	  	One (1) Three (3) year option to extend lease @ 95% of the prevailing market rate.
			
	 MONTHLY BASE RENT:
	  	                    Monthly Base Rent/Sq. Ft.	  	 	Monthly Rent
			
	 	  	Months 1 – 60        $0.90	  	$	22,099.50
		
	GUARANTOR:	  	None
		
	LETTER OF CREDIT:	  	$22,099.00
		
	TENANT’S PERCENTAGE SHARE:	  	22.80% based upon 107,707 Sq. Ft. Total Rentable Area of the Project
		
	LEASING BROKER:	  	 Tenant: Cresa Partners
 Landlord: J.
Volckmann & Associates, Inc. & Cornish & Carey

  
 The Basic Lease Information set forth
above is more fully set forth in the corresponding provisions of the Lease. The provisions of the Lease shall incorporate the applicable Basic Lease Information. In the event of a conflict between the Basic Lease Information and the terms of the
Lease, the Basic Lease Information shall control unless otherwise indicated in the Lease. 

 OFFICE LEASE 
  
 1. PARTIES. This Lease, dated for reference purposes only, June 15, 2004, is made by and between Stevens Creek
Office Center Associates, a California Limited Partnership (herein called “Landlord”) and NetManage, Inc., a Delaware corporation (herein called “Tenant”). 
  
 2. PREMISES. Approximately 24,555 rentable square feet in Building 20883 of the Stevens Creek Office Center (the
“Project”) (see Exhibit A). 
  
 (a) Demise of
Premises. Landlord does hereby lease to Tenant and Tenant hereby leases from Landlord that certain office space (the “Premises”) indicated on Exhibit “A” attached hereto and incorporated herein by reference, said Premises
being agreed, for the purpose of this Lease, to have an area of approximately the number of rentable square feet indicated in the Basic Lease Information and which constitutes the entire space of that certain building identified in the Basic Lease
Information (the “Building”). Additionally, for the term of this Lease, Tenant is granted the non-exclusive right to access and use all common areas of the Project. 
  
 (b) Terms and Conditions. Said Lease is subject to the terms, covenants and conditions herein set forth and both
Tenant and Landlord covenant as a material part of the consideration for this Lease to keep and perform each and all of said terms, covenants and conditions to be kept and performed by each of them and that this Lease is made upon the condition of
said performance. 
  
 3. INITIAL TERM. The initial term of
this Lease (the “initial term”) shall be for the period indicated in the Basic Lease Information, commencing on the date (the “Commencement Date”) which is the later of (i) the date of substantial completion by Landlord of the
compliance work at the Premises to be performed by Landlord referred to as “Landlord’s Work” on Exhibit “B” attached hereto, or (ii) September 1, 2004, and ending on the last day of the sixtieth (60th) full calendar month thereafter (the “Expiration Date”). As soon as the Commencement Date is determined, the parties
shall execute a memorandum in the form attached hereto as Exhibit ”C” (the “Commencement Date Memorandum”) setting forth the Commencement Date and the Expiration Date. Failure to execute the Commencement Date Memorandum, however,
shall not affect Tenant’s obligations hereunder. 
  
 4.
OPTION TO EXTEND. 
  
 (a) Landlord grants to the Tenant
one option to extend the initial term of this Lease for one (1) additional period of thirty-six (36) months. Such extension shall be on the same terms and conditions as provided in this Lease with the exception of Base Monthly Rent, and except that
there shall be no additional option to extend. Base Monthly Rent for the extension period shall be a sum equal to 95% of the prevailing market rate (excluding Tenant’s location) as of the date three (3) months prior to expiration of the initial
term. It shall be a condition precedent to the exercise of this option that Tenant shall not be in default beyond any applicable notice and cure period under this Lease at the time of exercise of the option and at the commencement of the extension
term. If Tenant elects to exercise this option, Tenant shall exercise this option by written notice delivered to Lessor at least one hundred eighty (180) days prior to the expiration date of the initial term, but not earlier than three hundred sixty
(360) days prior to the expiration of the initial term. The option to extend shall be personal to NetManage, Inc. and shall not be exercisable by any assignee or sublessee of NetManage, Inc., except a Permitted Transferee as defined in Paragraph 15
hereof. 

 (b) Upon the exercise of the option, the parties shall thereafter immediately meet and endeavor to agree
upon the fair market Base Monthly Rent of the Premises. If the parties are unable to agree upon the fair market Base Monthly Rent for the extension period within thirty (30) days after the exercise of the option (“Initial Meeting Period”),
then the determination of the Base Monthly Rent (to be ninety-five percent (95%) of the prevailing market rent) shall be promptly submitted to arbitration. Each party hereto will select as an arbitrator, within fifteen (15) days of the expiration of
the Initial Meeting Period, referred to above, a licensed real estate agent with at least five (5) years commercial real estate experience in the Cupertino, California market involving properties substantially similar to the Premises and said
arbitrators shall meet for the purpose of determining the Base Monthly Rent for the extension period. If one party fails to so select an arbitrator, the one arbitrator retained shall set the fair market Base Monthly Rent. If the two arbitrators do
not agree, within fifteen (15) days of their selection, they shall select a third arbitrator with the qualifications, referred to above, within fifteen (15) days, and if they cannot agree on a third arbitrator, the third arbitrator shall be
appointed by the presiding judge of the Superior Court in the County of Santa Clara. Landlord shall be required to petition such Court within ten (10) days of the expiration date of the time for the selection of the third arbitrator requesting the
earliest possible determination by the Court. The three arbitrators shall determine the Base Monthly Rent within thirty (30) days after the appointment of the third arbitrator, and if at least two (2) of the three (3) arbitrators cannot agree upon a
fair market Base Monthly Rent, the three values shall be added together and the total shall be divided by three. If any value is lower or higher than ten percent (10%) from the middle value such higher or lower value shall be excluded from the
calculations and the two remaining values shall be divided by two or if only one value remains, such value shall be the value used. If only one arbitrator is selected, the cost of the one arbitrator shall be shared equally by the parties. If each
party selects an arbitrator, each party shall pay the cost of the arbitrator selected by it, and the cost of the third arbitrator shall be paid equally. The determination shall be conclusive and binding and shall be signed by both parties and shall
thereupon become a part of this Lease. If the Base Monthly Rent for the extension period has not been determined as of the commencement of the extension period Tenant shall pay the Base Monthly Rent then due for the last month prior to commencement
of the extension period. Any deficiency shall be payable by Tenant to Landlord within ten (10) days of the arbitrators’ determination of the Base Monthly Rent for the extension period. Any surplus shall be a credit for Base Monthly Rent to
become thereafter due. 
  
 (c) The option, granted to the Tenant
hereunder, shall terminate upon the earliest of the following to occur: (i) the expiration or earlier termination of this Lease; (ii) Tenant’s failure to timely exercise as set forth above; (iii) Tenant’s breach of this Lease (and
Tenant’s failure to cure within the applicable cure period set forth in this Lease, if any) at any time during the initial term of this Lease; or (iv) the assignment of this Lease by Tenant or the sublease by Tenant of the Premises for the
balance of the initial term, except to a Permitted Transferee. As used in this Lease, “term” and “the term of this Lease” shall include the initial term and the option extension period, if exercised. 
  
 5. POSSESSION. Tenant shall have access to the Premises prior to the
Commencement Date for the purpose of preparing the Premises for occupancy by Tenant, and for the construction of the tenant improvement work to be performed by Tenant (the “Tenant Improvement Work”) described on Exhibit “B”
attached hereto, upon execution of this Lease by both parties, and upon delivery by Tenant to Landlord of evidence that Tenant’s commercial general liability insurance is in effect. Landlord and Tenant shall mutually cooperate in the

  

 4 

 scheduling of their respective work in the Premises. Landlord shall endeavor to deliver the Premises to Tenant on
or before August 15, 2004 with all of Landlord’s Work substantially completed. If Landlord fails to deliver possession of the Premises to Tenant on or before the Rent Commencement Date with Landlord’s Work substantially completed, then the
Commencement Date of the initial Lease term (and the Rent Commencement Date) shall be extended one day for each such day of delay. In addition, Landlord agrees that it shall reimburse Tenant for the actual hold over costs incurred by Tenant under
its existing lease as a result of Landlord’s failure to timely deliver the Premises as required herein. Notwithstanding the foregoing, if Landlord has not delivered the Premises on or before November 1, 2004 with Landlord’s Work
substantially completed, Tenant shall be entitled immediately to terminate this Lease upon written notice to Landlord, and neither party shall have any further liability to the other except for Landlord’s obligation to reimburse Tenant the
actual hold over costs incurred by Tenant under its existing lease. Notwithstanding anything to the contrary herein or elsewhere in this Lease, Landlord agrees that Tenant shall have a period of one (1) week from the date of delivery of the Premises
free of charge of any rent to move-into the Premises. Upon delivery of the Premises, Landlord and Tenant shall jointly inspect the space and prepare a list of any punch list items relating to Landlord’s Work. Landlord shall have thirty (30)
days to complete all punch list items relating to Landlord’s Work. 
  
 6. RENT. Tenant agrees to pay to Landlord the Monthly Base Rent for the Premises indicated in the Basic Lease Information, together with any Additional Rent pursuant to this Lease, without prior notice or demand, on or before the
first day of the first full calendar month of the term hereof and a like sum on or before the first day of each and every successive calendar month thereafter during the term hereof, except that the first full month’s rent shall be paid upon
the execution hereof. Rent for any period during the term hereof which is for less than one (1) month shall be a prorated portion of the monthly installment herein, based upon a thirty (30) day month. Said rent shall be paid, without deduction or
offset in lawful money of the United States of America, which shall be legal tender at the time of payment, to Landlord, at the address of Landlord indicated in the Basic Lease Information, or to such other person or at such other place as Landlord
may from time to time designate in writing. The acceptance of rent hereunder by Landlord shall not constitute a waiver of any preceding breach by Tenant of any provision of this Lease, other than the failure of Tenant to pay the particular rent so
accepted, nor shall acceptance of a partial rent payment constitute a waiver by Landlord of any its rights hereunder, including its right to recover possession of the property. 
  
 7. ADDITIONAL RENT; DIRECT EXPENSES AND TAXES. 
  
 (a) In addition to Monthly Base Rent payable by Tenant to Landlord pursuant to Paragraph 6, commencing with the Rent
Commencement Date and continuing during the term of this Lease, Tenant shall pay to Landlord, as additional rent (“Additional Rent”) (i) all real property taxes and assessments levied against the land and the Building constituting the
Premises, pursuant to Paragraph 7(c), and (ii) Tenant’s Percentage Share of the Direct Expenses of the Project of which the Premises are a part, in accordance with Paragraph 7(b) hereof. Tenant shall directly contract for and shall be solely
responsible for paying for electrical and gas service to the Premises. Tenant shall reimburse Landlord for janitorial services and supplies, including trash collection, and for water and sewer service provided to the Premises, but the foregoing
shall not be considered Direct Expenses. The Direct Expenses of the Project currently include the repair and maintenance of the Building and the other buildings and improvements in the Project, maintenance of the common areas of the Project, parking
lot lighting (cost of electricity and maintenance of the fixtures), all landscape maintenance and irrigation of the Project and Landlord’s insurance coverages for the Project. The Direct Expenses of the Project may include other reasonable
items from time to time during the term of this Lease. Monthly Base Rent and Additional Rent are referred to herein collectively as “rent.” 
  

 5 

 (b) “Direct Expenses,” as used herein, shall include all reasonable direct costs actually
incurred by Landlord in the management, operation, maintenance, repair and replacement of the buildings and the improvements in the Project, including the cost of all maintenance, repairs, and restoration of the Premises and the Building which are
the subject of this Lease, performed by Landlord pursuant to Paragraph 13(b) hereof, as determined by generally accepted accounting principles (unless excluded by this Lease), including but not limited any parking taxes or parking levies imposed on
the Project in the future by any governmental agency; waste disposal; insurance premiums for insurance coverages maintained by Landlord pursuant to Paragraph 18(c) hereof; license, permit, and inspection fees; painting and repairing, interior and
exterior of buildings on the Project, including the Building; repair, maintenance, and replacement of air-conditioning, heating, mechanical and electrical systems, elevators, plumbing and sewage systems; landscaping, gardening, and tree trimming;
glazing; repair, maintenance, cleaning, sweeping, striping, and resurfacing (but not more than once in any five (5) year period) of the parking area and other common areas of the Project; exterior building lighting and parking lot lighting;
supplies, materials, equipment and tools in the maintenance of the Project; and the cost of any other capital expenditures for any improvements or changes to the buildings or improvements in the Project which are required by laws, ordinances, or
other governmental regulations adopted after the Commencement Date, or for any items or capital expenditures voluntarily made by Landlord which are intended to and have the effect of reducing Direct Expenses; provided, however, that except for
capital improvements required because of the specific use of the Premises by Tenant, or the specific use by any other tenant of any building in the Project, if Landlord is required to or voluntarily makes such capital improvements, Landlord shall
amortize the cost of said improvements over the useful life of said improvements (together with interest on the unamortized balance at the rate equal to the effective rate of interest on Landlord’s bank line of credit at the time of completion
of said improvements, but in no event in excess of twelve percent (12%) per annum) as a Direct Expense in accordance with generally accepted accounting principles, except that with respect to capital improvements made to save Direct Expenses such
amortization shall not be at a rate greater than the actual savings in Direct Expenses. Direct Expenses shall also include any other expense or charge, whether or not described herein not specifically excluded by other provisions of this Lease,
which in accordance with generally accepted accounting principles would be considered an expense of managing, operating, maintaining, and repairing the Premises and the Project. 
  
 (c) The Premises are separately assessed for real property tax purposes. Tenant shall reimburse Landlord for all real estate
taxes, assessments and any other taxes levied or assessed against the Premises including the Land, the Building, and all improvements located thereon (referred to herein as “Taxes”). Not included within the definition of “Taxes”
are any net income, profits, transfer, franchise, estate, gift, rental income, or inheritance taxes imposed by any governmental authority. 
  
 (d) Notwithstanding the foregoing, Direct Expenses shall not include the following: 
  
 (1) Cost of repairs or other work occasioned by fire, windstorm or other casualty of an insurable nature or by the exercise
of eminent domain for which Landlord receives compensation; 
  

 6 

 (2) Leasing commissions, attorneys’ fees, costs and disbursements and other expenses incurred in
connection with negotiations or disputes with tenants, other occupants, or prospective tenants or occupants; 
  
 (3) Renovating or otherwise improving or decorating, painting or redecorating space for other tenants or other occupants of the Project; 
  
 (4) Landlord’s costs of electricity and other services that are sold to
tenants and for which Landlord is entitled to be reimbursed by tenants as an additional charge or rental over and above the basic rent payable under this Lease with such tenant; 
  
 (5) Costs incurred by Landlord for alterations or improvements to the Premises which are considered capital improvements or
replacements under generally accepted accounting principles, except as expressly permitted above, in which event the cost of such capital improvement or replacement shall be amortized over its useful life and Tenant shall pay Tenant’s
Percentage Share of such cost during the term of this Lease; 
  
 (6) Depreciation and amortization; 
  
 (7) Expenses in
connection with services or other benefits of a type which are not made available to Tenant but which are provided to other tenants or occupants; 
  
 (8) Costs associated with special services rendered to tenants (including Tenant) for which a special charge is made; 
  
 (9) Costs incurred due to violation by Landlord or any other tenant of the
terms and conditions of any lease; 
  
 (10) Expenses resulting
from the negligence of Landlord, its agents, contractors or employees, or any expense incurred as a result of Landlord’s failure to use reasonable efforts to minimize Direct Expenses to the extent possible without detracting from the standards
of a first class office project; 
  
 (11) Any costs, fines or
penalties incurred due to violations by Landlord of any governmental rule or authority; 
  
 (12) Interest on debt or amortization payments on any mortgage or mortgages, and rental under any ground or underlying lease or leases; 
  
 (13) Any bad debt loss, rent loss, or reserves for bad debts or rent loss; 
  
 (14) All interest or penalties incurred as a result of Landlord’s
negligently failing to pay any bill as the same shall become due; 
  
 (15) Compensation paid to officers and executives of Landlord; 
  
 (16) Costs incurred to correct defects in the original construction of the Project; 
  
 (17) Costs (including penalties, fines, or interest charges) associated with compliance with general building codes, laws, regulations or ordinances
which were enacted prior to Tenant’s occupancy, whether such work is performed before or after the Commencement Date of this Lease; 
  

 7 

 (18) Costs associated with the operation of the business of the entity which constitutes Landlord,
including, without limitation, formation of the entity, internal accounting and legal matters, preparation of tax statements, and the costs of any disputes between Landlord and its employees not engaged in the full-time management or operation of
the Project; and 
  
 (19) Costs incurred in connection with the
investigation or remediation of any Hazardous Materials located in, on or under the Project or the Premises as of the Commencement Date, or any Hazardous Materials stored, used or released by Landlord, its agents or employees after the Commencement
Date. 
  
 (e) At the Commencement Date, and as close as reasonably
possible to the end of each calendar year thereafter, Landlord shall notify Tenant of the Direct Expenses estimated by Landlord for the calendar year 2004, and for each following calendar year. Notwithstanding the foregoing, Landlord agrees that the
Direct Expenses (including Taxes) for the period from September 1, 2004 through December 31, 2005 shall not exceed $0.47 per square foot per month. Concurrently with such notice, Landlord shall provide a description of such Direct Expenses and
Taxes. Commencing on the Commencement Date, and on the first (1st) day of each calendar month thereafter, Tenant
shall pay to Landlord, as Additional Rent, one-twelfth (1/12th) of the estimated Direct Expenses and Taxes. If at any time during any such calendar year, it appears to Landlord that the Direct Expenses or Taxes for such year will vary from
Landlord’s estimate, Landlord may, by written notice to Tenant, revise Landlord’s estimate for such year and the Additional Rent and Taxes payments by Tenant for such year shall thereafter be based upon such revised estimate. Landlord
shall furnish to Tenant with such revised estimate written verification showing that the actual Direct Expenses or Taxes are greater or less than Landlord’s estimate. Any increase in the monthly installments of Additional Rent and Taxes
resulting from Landlord’s revised estimate shall not be retroactive, but the Additional Rent and Taxes for each calendar year shall be subject to adjustment between Landlord and Tenant after the close of the calendar year, as provided below.
Notwithstanding anything to the contrary contained herein, Tenant’s obligation to pay increases in Direct Expenses shall, with the exception of Taxes, utility charges, and insurance premiums, be limited to a cumulative increase of four percent
(4%) per year. 
  
 Landlord shall endeavor to furnish to Tenant on
or before the first day of March of each calendar year of the term a statement certified by a responsible employee or agent of Landlord (the “Operating Statement”) with respect to such year, prepared by an employee or agent of Landlord,
showing Direct Expenses and Taxes broken down by component expenses, and the total payments made by Tenant on the basis of any previous estimate of such Direct Expenses and Taxes, all in sufficient detail for verification by Tenant, but the failure
by Landlord to deliver such statement by said date shall not constitute a waiver by Landlord of its right to require payment of such amount. Notwithstanding the foregoing, Tenant shall have no liability for payment of any additional Direct Expenses
for which Landlord has not rendered a statement to Tenant for the Additional Rent within one (1) year after the last day of the calendar year with respect to which such Additional Rent is payable. Within sixty (60) days of Tenant’s receipt of
Landlord’s year end statement of Direct Expenses for the previous year, Tenant may have a certified public accountant review Landlord’s records, at the office where such records are normally kept, for the purpose of determining the
accuracy of Landlord’s statement. Upon expiration of such sixty (60) day period, Landlord’s figures shall be deemed conclusive and final. 
  

 8 

 If the Direct Expenses and Taxes for the year as finally determined exceed the total payments made by
Tenant based on Landlord’s estimates, Tenant shall pay to Landlord the deficiency, within thirty (30) days after the receipt of Landlord’s Operating Statement. If the total payments made by Tenant based on Landlord’s estimate of the
Direct Expenses and/or Taxes exceed the Direct Expenses and/or Taxes, Tenant’s extra payment shall be credited against payments of Monthly Base Rent and Additional Rent next due hereunder. Tenant agrees to pay all costs involved in such
determination except when it is determined by the certified public accountant that Landlord has overcharged Tenant by more than five percent (5%), in which case Landlord shall pay such costs and reimburse Tenant for its overpayment within thirty
(30) days after completion of the audit. 
  
 Notwithstanding the
termination of this Lease, within thirty (30) days after Tenant’s receipt of Landlord’s Operating Statement for the calendar year in which this Lease terminates, Tenant shall pay to Landlord or shall receive from Landlord, as the case may
be, an amount equal to the difference between the Direct Expenses and/or Taxes for such year, as finally determined, and the amount previously paid by Tenant on account thereof (prorated to the expiration date or the termination date of this Lease).

  
 8. LETTER OF CREDIT. Tenant shall deliver to Landlord
upon execution of this Lease an irrevocable and unconditional negotiable standby letter of credit (“Letter of Credit”) payable at San Francisco, California, issued by Union Bank of California, or another bank reasonably approved by
Landlord (the “Bank”), in a form reasonably approved by Landlord, and otherwise in compliance with the requirements of this Paragraph 8. The Letter of Credit shall be in the amount of Twenty-two Thousand Ninety-nine Dollars ($22,099 USD).
The Letter of Credit shall serve as protection for Landlord, for payment of the Monthly Base Rent referred to in Paragraph 6 hereof, and for the payment of all Additional Rent pursuant to Paragraph 7 hereof, and to assure the full and faithful
performance by Tenant of all of its other obligations under the Lease. If Tenant defaults on any provision of the Lease, Landlord may, without prejudice to any other remedy it has, draw on that portion of the Letter of Credit necessary to pay any
rent or other sum in default, or to otherwise cure Tenant’s default. The Letter of Credit shall (1) be “callable” at sight, irrevocable and unconditional, (2) be subject to the terms of this Lease, maintained in effect for the entire
term of this Lease (including the option extension period, if exercised), and automatically renewed annually unless the Bank gives a written notice (“Non-renewal Notice”) to Landlord not less than sixty (60) days prior to any automatic
annual renewal date that the Bank has elected not to renew the Letter of credit, (3) be subject to the International Standby Practices 1998, International Chamber of Commerce Publication No. 590, (4) be fully assignable by Landlord (at the sole cost
of Landlord) to any successor Landlord, and (5) permit partial draws. If any portion of the Letter of Credit is so used or applied, Tenant shall immediately deposit funds with Landlord in an amount sufficient to restore the amount held by Landlord
pursuant to this Paragraph 8 to its original amount and Tenant’s failure to do so shall be a material breach of this Lease. Should the agreed use as provided in Paragraph 9(a) be amended to accommodate a material change in the business of the
Tenant or to accommodate a sublessee or assignee, Landlord shall have the right to require that Tenant deliver a security deposit to the extent necessary, in Landlord’s reasonable judgment, to account for any increased wear and tear that the
Premises may suffer as a result thereof. Landlord shall not be required to keep the cash portion, if any, of the amount held by Landlord under this Paragraph 8 separate from its general funds, and Tenant shall not be entitled to interest on such
funds. If Tenant shall fully and faithfully perform every provision of this Lease to be performed by it, the amount held by Landlord pursuant to this Paragraph 8 or any balance thereof shall be returned to Tenant (or, at Landlord’s option, to
the last assignee of Tenant’s interest hereunder) within twenty-one (21) days of the expiration of the term. In the event of termination of Landlord’s interest in this Lease, Landlord shall transfer said deposit to Landlord’s
successor in interest and Landlord shall have no further liability under this Lease. 
  

 9 

 9. USE. 
  

(a) Tenant shall use the Premises for general office, software development marketing, sales and/or non-industrial R&D purposes and shall not use or
permit the Premises to be used for any other purposes without the prior written consent of Landlord, which may be withheld in Landlord’s sole discretion. 
  

(b) Tenant shall not do or permit anything to be done in or about the Premises, nor bring or keep anything therein, which will in any way increase the
existing rate of or affect any fire or other insurance upon the Project, the Building, or any of its contents, or cause cancellation of any insurance policy covering said Project or Building or any part thereof or any of its contents. Tenant shall
not do or permit anything to be done in or about the Premises which will in any way mutually obstruct or mutually interfere with the rights of other tenants or occupants of the Project or injure or annoy them or use or allow the Premises to be used
for any unlawful purpose, nor shall Tenant cause, maintain or permit any nuisance in, on or about the Premises. Tenant shall not commit or suffer to be committed any waste in or upon the Premises. 
  
 10. HAZARDOUS MATERIALS. 
  
 (a) Tenant shall not bring, store, deposit or use any Hazardous Material (as
defined herein) on or about the Premises or the Project, nor shall Tenant allow or permit its agents, employees, or contractors to bring, store, deposit or use any Hazardous Material on or about the Premises or the Project, except (i) incidental
quantities of household chemicals commonly used for office and janitorial purposes, and (ii) any other Hazardous Materials specified by Tenant which Landlord consents to in writing, provided that any such Hazardous Materials shall be used by Tenant
in compliance with Hazardous Materials laws. “Hazardous Material” as used herein shall mean any hazardous, toxic or radioactive substance now or hereafter regulated by federal, state or local governmental or other authority, including, but
not limited to, any “hazardous substance” as defined in Section 101 of the Comprehensive Environmental Response, Compensation and Liability Act of 1980, as it may be amended or supplemented, and any crude oil, petroleum product, natural
gas product or related materials. If Tenant knows, or has reason to believe that a Hazardous Material has come to be located in, or about the Premises, other than previously consented to in writing by Landlord, Tenant shall immediately give notice
of such fact to Landlord, and provide Landlord with a copy of any report, notice, claim or other documentation which it has concerning the presence of such Hazardous Material. Tenant shall not be responsible for any Hazardous Material condition
clean-up or liability existing or arising prior to Tenant’s possession of the Premises. 
  
 (b) Tenant shall indemnify, protect, defend, and hold Landlord, its partners, agents, employees, and lenders, and the Premises and the Project, harmless from and against any and all damages, liabilities, judgments,
costs, claims, liens, expenses, penalties, and attorneys’ and consultants’ fees arising out of or involving any Hazardous Materials brought onto the Premises or the Project by Tenant or by anyone under Tenant’s control. Tenant’s
obligations under this Paragraph 10(b) shall include, but not be limited to, the effects of any contamination or injury to person, property, or the environment caused by Tenant, and the cost of investigation, removal, and remediation of such effects
and any such contamination. Tenant’s obligations hereunder shall survive the expiration or earlier termination of this Lease for a period of three (3) years, and shall not be released by any termination, cancellation, or release agreement
unless specifically so agreed by Landlord in writing at the time of such agreement. 
  

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 11. COMPLIANCE WITH LAW AND PRIVATE RESTRICTIONS. Tenant shall not use the Premises or Project or
permit anything to be done in or about the Premises or the Project which will in any way materially conflict with any law, statute, ordinance or governmental rule or regulation now in force or which may hereafter be enacted or promulgated, any and
all private restrictions that are of record, and the Rules and Regulations attached hereto as Exhibit D (collectively, “Applicable Laws”). Subject to Landlord’s obligation to perform at Landlord’s expense Landlord’s Work
described on Exhibit “B” prior to the Rent Commencement Date, Tenant shall, at its sole cost and expense, promptly comply with all Applicable Laws referred to above, and with the requirements of any board of fire insurance underwriters or
other similar bodies now or hereafter constituted, relating to, or affecting the condition, use or occupancy of the Premises or the Project, excluding structural changes not related to or affected by Tenant’s improvements or acts.
Notwithstanding the foregoing, Landlord hereby expressly agrees that Tenant shall have no responsibility of any nature whatsoever for any non-compliance with applicable Title 24/ADA requirements existing in the Project or the Premises as of the Rent
Commencement Date. The judgment by any court of competent jurisdiction or the admission of Tenant in any action against Tenant, whether Landlord be a party thereto or not, that Tenant has violated any such Applicable Laws shall be conclusive of that
fact as between the Landlord and Tenant. Landlord agrees that all modifications necessary to bring the Premises into compliance with the requirements of Title 24 and the Americans With Disabilities Act as of the Commencement Date shall be performed
by Landlord at Landlord’s expense (and shall not be subject to pass-through as a Direct Expense). 
  
 12. ALTERATIONS AND ADDITIONS. Tenant shall not make or suffer to be made any alterations, additions or improvements (“Alterations”) to
or of the Premises, the Building, the Project, or any part thereof, without the prior written consent of Landlord which shall not be unreasonably withheld, conditioned or delayed. Landlord may condition its consent to any Alterations by Tenant upon
the removal thereof by Tenant, at Tenant’s expense, prior to the expiration of the term, and the restoration by Tenant, at Tenant’s expense, of the Premises to its condition prior to such Alterations, reasonable wear and tear excepted.
Except for movable furniture and trade fixtures installed at the expense of Tenant that can be removed without damaging the Premises, on the expiration of the term all Alterations, whether installed by Landlord or Tenant, shall belong to the
Landlord and shall be surrendered with the Premises. Tenant shall repair, at Tenant’s expense, any damage to the Premises caused by the removal of any of Tenant’s property. In the event Landlord consents to the making of any Alterations to
the Premises by Tenant, the same shall be made by Tenant at Tenant’s sole cost and expense. All Alterations to be constructed by Tenant shall be constructed in accordance with all Applicable Laws using new materials of good quality, by a
licensed contractor reasonably acceptable to Landlord. Tenant shall not commence construction of any Alterations until (i) Tenant has delivered to Landlord plans and specifications for such Alterations prepared by a licensed architect and Landlord
shall have approved such plans and specifications, such approval not to be unreasonably withheld or delayed, (ii) all required governmental approvals and permits have been obtained, (iii) all requirements regarding insurance imposed by this Lease
have been satisfied, (iv) Tenant has given Landlord at least ten (10) days’ prior written notice of its intention to commence such construction, and (v) if reasonably requested by Landlord, Tenant shall have obtained contingent liability and
broad form builders’ risk insurance in an amount reasonably satisfactory to Landlord. Notwithstanding the foregoing, Tenant may construct Alterations in the Premises without Landlord’s prior written consent to the extent that the aggregate
cost of all such Alterations constructed during any twelve (12) months period occurring during the term of this Lease does not exceed Twenty-five Thousand Dollars 
  

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 ($25,000), and provided that (i) the Alterations are to the interior of the Premises and do no affect the outside
appearance of the Premises, the Alterations are nonstructural and do not impair the structural integrity of the Premises, and the Alterations do not affect the proper functioning of the plumbing, air conditioning, heating, and electrical systems;
(ii) Tenant shall have delivered to Landlord plans and specifications for such Alterations and Landlord shall have approved the same prior to commencement to construction; and (iii) Tenant shall give Landlord at least ten (10) days’ written
notice prior to commencement of construction of any such Alterations so that Landlord may post and record notices of non-responsibility. 
  
 13. REPAIRS. 
  
 (a) Subject to Landlord’s obligations referred to in Paragraph 11 with respect to placing the Premises in compliance with applicable Title 24/ADA
requirements and Landlord’s Work as of the Commencement Date, by taking possession of the Premises, Tenant shall be deemed to have accepted the Premises as being in good order, condition and repair. Tenant shall, at Tenant’s sole cost and
expense, keep the Premises and every part thereof in good condition and repair, and Tenant shall surrender the Premises to Landlord upon the expiration or sooner termination of this Lease in such condition, reasonable wear and tear, casualty,
condemnation and Landlord’s obligations excepted. Except as specifically provided in this Lease, Landlord shall have no obligation whatsoever to alter, remodel, improve, repair, decorate or paint the Premises or any part thereof. 
  
 (b) Notwithstanding the provisions of Paragraph 13(a) hereinabove, Landlord
shall, at Landlord’s expense, replace, repair and maintain the Project and the Premises, including the structural portions of the Building, including the basic structure, plumbing, air conditioning, heating, and electrical systems, installed or
furnished by Landlord, unless such maintenance and repairs are caused in part or in whole by the act, neglect, fault or omission of any duty by the Tenant, its agents, servants, employees or invitees, in which case Tenant shall pay to Landlord the
cost of such maintenance and repairs. Landlord shall not be liable for any failure to make any such repairs or to perform any maintenance unless Landlord fails to commence such repairs within ten (10) days after Tenant gives written notice of the
need of such repairs or maintenance to Landlord and to prosecute such repairs diligently to completion within a reasonable time. Except as provided in Paragraph 24 hereof, there shall be no abatement of rent and no liability of Landlord by reason of
any injury to or interference with Tenant’s business arising from the making of any repairs, alterations or improvements in or to any portion of the Project or the Premises or in or to fixtures, appurtenances and equipment therein. Tenant
waives the right to make repairs at Landlord’s expense under any Law now or hereafter in effect. Tenant waives the provisions of Sections 1932 (1) 1941, and 1942 of the Civil Code and/or any similar or successor statute regarding Tenant’s
right to terminate this Lease or to make repairs and deduct such expenses from the rent due under this Lease. 
  
 14. LIENS. Tenant shall keep the Premises and the Project free from any liens arising out of any work performed, materials furnished or obligations
incurred by Tenant. Tenant further agrees to promptly and fully pay and discharge any and all claims on which a lien may or could be based, and to save and hold Landlord and all of the Premises and the Project and any other improvements thereon free
and harmless of and from any and all liens, claims and suits or other proceedings pertaining thereto. Landlord may require, at Landlord’s sole option, that Tenant shall provide to Landlord, at Tenant’s sole cost and expense, a lien and
completion bond in an amount equal to one and one-half (1 1/2) times any and all estimated cost of any
Alterations in the Premises, to insure Landlord against any liability for mechanics’ and materialmen’s liens and to insure completion of the work. 
  

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 15. ASSIGNMENT AND SUBLETTING. 
  
 (a) Tenant shall neither voluntarily nor by operation of law, assign, transfer, mortgage, pledge, hypothecate or encumber
this Lease or any interest therein, and shall not sublet the said Premises or any part thereof, or any right or privilege appurtenant thereto, or suffer any other person (the employees, agents, servants and invitees of Tenant excepted) to occupy or
use the Premises, or any portion thereof, without the prior written consent of Landlord, which consent shall not be unreasonably withheld, conditioned or delayed. Tenant shall pay Landlord’s actual and reasonable fees and costs incurred in
connection with Tenant’s request to assign or sublet, whether or not Landlord consents to the assignment or subletting. 
  
 Any assignment or subletting without such consent shall be void, and shall, at the option of the Landlord, constitute a default under this Lease. An
assignment for purposes of this paragraph shall include any sale or transfer, including by consolidation, merger or reorganization, of a majority of the voting stock of Tenant, if Tenant is a corporation, or any sale or other transfer of a majority
of the partnership interest in Tenant, if Tenant is a partnership, in a single transaction or a series of related transactions. A consent to one assignment, subletting, occupation or use by any other person shall not be deemed to be a consent to any
subsequent assignment, subletting, occupation or use by another person. 
  
 (b) In the event that Tenant should desire to sublease the Premises or any part thereof, or to assign this Lease, Tenant shall provide Landlord with written notice of such desire at least fifteen (15) days in advance of the proposed
effective date of such subletting or assignment. Such notice shall include (i) the name of the proposed subtenant or assignee, (ii) the nature of business to be conducted on the Premises, (iii) a copy of the proposed assignment or sublease, and (iv)
the most recent financial statements of the proposed subtenant or assignee. At any time within fifteen (15) days following receipt of Tenant’s notice, Landlord may by written notice to Tenant (i) consent to proposed subletting or assignment
subject to the terms and conditions hereof, (ii) withhold Landlord’s consent to the assignment or subletting specifying reasonable grounds therefore, or (iii) elect to terminate this Lease as to the space affected as of the effective date of
the proposed assignment or subletting. If Landlord elects to terminate this Lease as to the space affected, Tenant may withdraw its request to sublet or assign by notice to Landlord within five (5) business days after receipt of Landlord’s
termination notice, and thereupon Landlord’s exercise of its termination right shall be nullified and this Lease shall continue in full force and effect. Without limiting other situations in which it may be reasonable for Landlord to withhold
its consent to any proposed assignment or subleases, Landlord and Tenant agree that it shall be reasonable for Landlord to withhold its consent in any one or more of the following situations: (i) if Tenant is in default under this Lease and any
applicable cure period has expired at the time Tenant requests such consent, (ii) in Landlord’s reasonable judgment, the proposed subtenant or assignee or the proposed use of the Premises would detract from the attractiveness or value of the
Project as an office complex or would generate traffic or density materially in excess of the amount customary for the Project or would impose a materially greater load upon elevator, janitorial, security, maintenance or other services than is
customary for the building; (iii) in Landlord’s reasonable judgment, the financial worth of the proposed assignee does not meet the credit standards applied by Landlord in considering other tenants under leases with comparable terms; (iv)
Tenant shall have failed to provide Landlord with reasonable proof of the financial worth of the proposed assignee; (v) in Landlord’s reasonable judgment, the business history, experience, or reputation in the community of the proposed
subtenant or assignee does not meet the standards applied by Landlord in considering other tenants in the Project; or (vi) the proposed subtenant or assignee shall be a then existing or prospective tenant of the Building or of any other building in
the Project; provided that in any event the Landlord shall be entitled to exercise its right of termination in lieu of consenting to a transfer, as set forth above. 
  

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 (c) Tenant shall pay to Landlord as additional rent under this Lease, without affecting or reducing any
of Tenant’s obligations hereunder, the entire amount of any rent received or to be received by or on behalf of, or for the benefit of, Tenant as a result of any assignment or subletting, in excess of the Base Monthly Rent, Direct Expenses, and
Taxes, which the Tenant is obligated to pay Landlord under this Lease, provided that Tenant shall have the right to deduct on a monthly basis from the excess amounts otherwise payable to Landlord, the reasonable brokerage commissions, the cost of
reasonable tenant improvements approved by Landlord that Tenant is required to make at Tenant’s expense pursuant to such assignment or sublease, or other rent concessions paid by Tenant in connection with such assignment or sublease, which
shall be amortized on a straight line basis, without interest, over the remaining term of this Lease or the term of the sublease, as applicable. If acceptable to subtenant, Landlord’s share of such excess rent or other consideration shall be
paid by the subtenant or assignees directly to Landlord at the same time as such rent or other consideration is payable to Tenant. 
  
 (d) No subletting or assignment shall relieve Tenant of any obligation under this Lease, including the obligation to pay rent and to perform all other
obligations required of Tenant by this Lease. In order for any assignment or subletting to be binding upon Landlord, Tenant must deliver to Landlord, promptly after execution thereof, an executed copy of such sublease or assignment whereby the
subtenant or assignees shall expressly agree to assume the obligations of Tenant under this Lease and to be bound hereby. At the option of Landlord, any assignees of Tenant shall become directly liable to Landlord for the obligations of Tenant
hereunder, but no subletting or assignment by Tenant shall release Tenant from its obligations hereunder. The acceptance of payments by Landlord from any other person shall not be deemed to be a waiver of any provision hereof. Consent to one
assignment or subletting shall not be deemed consent to any subsequent or further assignment, subletting, hypothecation, or third party use. In the even of default by any assignee or successor of Tenant in the performance of any of the terms hereof,
Landlord may proceed directly against Tenant without the necessity of exhausting remedies against said assignee or successor. 
  
 (e) Notwithstanding the foregoing provisions of this Paragraph 15 to the contrary, Landlord’s prior written consent will not be required with respect
to an assignment or sublease to (A) any corporation, association, trust or partnership that controls, is under the control of, or is under common control with Tenant, (B) in connection with a merger or consolidation of Tenant or its parent
corporation, and (C) in connection with the sale of all or substantially all of the assets of Tenant or the sale of the stock or equity interest of Tenant (each a “Permitted Transferee”); provided that (i) Tenant gives Landlord prior
written notice of such assignment or sublease, (ii) the assignee or sublessee expressly assumes the obligation of the Tenant hereunder, (iii) Tenant shall not be released from liability hereunder on account of such assignment or sublease, and (iv)
if NetManage, Inc. is not a surviving entity in any such transaction, the effectiveness of such assignment or sublease shall be conditioned upon the successor entity that assumes the Lease providing Landlord with written evidence reasonably
satisfactory to Landlord that such successor entity has a current net worth at least equal to that of NetManage, Inc. as of the date of execution and delivery of this Lease. 
  
 16. HOLD HARMLESS. Except for any acts or negligence of Landlord, its officers, agents or employees, Tenant shall
indemnify and hold harmless Landlord against and from any and all claims arising from Tenant’s use of the Premises or from any activity, work, or other thing done, permitted or suffered by Tenant in or about the Project, and shall further
indemnify 
  

 14 

 and hold harmless Landlord against and from any and all claims arising from any breach or default under this Lease in the
performance of any obligation on Tenant’s part to be performed under the terms of this Lease, or arising from any willful act or negligence of Tenant, or any officer, agent, employee of Tenant, and from and against all costs, attorney’s
fees, expenses and liabilities incurred in or resulting from any such claim or any action or proceeding brought thereon, and, in any case, if any action or proceeding is brought against Landlord by reason of any such claim, Tenant upon notice from
Landlord shall defend the same at Tenant’s expense by counsel reasonably satisfactory to Landlord. Tenant as a material part of the consideration to Landlord hereby assumes all risk of damage to property or injury to persons, in, upon or about
the Premises, from any cause other than Landlord’s (including its employees and agents) negligence or willful misconduct, and Tenant hereby waives all claims in respect thereof against Landlord. Landlord or its agents shall not be liable for
any loss or damage to any property by theft or any third-party criminal act, nor for any injury to or damage to persons or property or to the business of Tenant resulting from fire, explosion, falling plaster, steam, gas, electricity, water or rain
which may leak from any part of the Project or from the pipes, appliances or plumbing works therein or from the roof, street or subsurface or from any other place resulting from dampness or any other cause whatsoever, unless prior to the occurrence
causing the loss or damage Tenant shall have given written notice to Landlord of the need for repairs to the Premises or the Project pursuant to Paragraph 13(b), Landlord shall have failed to commence such repairs and prosecute the same diligently
to completion as required by Paragraph 13(b), and the condition requiring repairs of which Tenant gave Landlord written notice was the proximate cause of the injury to or damage to persons or property or to the business of tenant which occurred.
Tenant shall give prompt notice to Landlord in case of fire or accidents in the Premises or in the Project or of defects therein or in the fixtures or equipment thereof. 
  
 17. WAIVER OF SUBROGATION. Landlord and Tenant shall each obtain from their respective insurers under all policies of
fire and other casualty insurance maintained by either of them at any time during the term, insuring or covering the Premises, or any portion thereof, or operations or property contained therein, a waiver of all rights of subrogation which the
insurer of one party might otherwise have against the other party, and Landlord and Tenant shall each indemnify the other against any loss or expense, including reasonable attorney’s fees, resulting from the failure to obtain such waiver.

  
 18. LIABILITY AND PROPERTY INSURANCE. 
  
 (a) Tenant shall, at Tenant’s expense, obtain and keep in force during
the term of this Lease the following insurance coverage: (i) commercial general liability insurance insuring Landlord and Tenant against any liability arising out of the ownership, use, occupancy or maintenance of the Premises and all areas
appurtenant thereto. The minimum acceptable amount of comprehensive liability insurance is a combined single limit of $2,000,000 for each occurrence of bodily injury liability and/or property damage liability; (ii) “all risk” fire and
extended coverage property damage insurance insuring Tenant’s personal property and leasehold improvements and fixtures installed by or at Tenant’s expense in the Premises for the full actual replacement cost thereof; (iii) workers’
compensation coverage and any other employee benefit insurance sufficient to comply with all Applicable Laws; (iv) business interruption insurance providing coverage against direct or indirect loss of Tenant’s earnings from all causes,
including losses attributable to Tenant’s inability to use fully or obtain access to the Premises or Building; and (v) with respect to construction of Alterations or the like undertaken by Tenant, contingent liability and broad form
builder’s risk insurance in an amount reasonably satisfactory to Landlord. 
  

 15 

 (b) The limits of said insurance shall not limit the liability of the Tenant hereunder. Tenant may carry
said insurance under a blanket policy, providing, however, said insurance by Tenant shall have a Landlord’s protective liability endorsement attached thereto. If Tenant shall fail to procure and maintain said insurance, Landlord may, but shall
not be required to, procure and maintain same, but at the expense of Tenant. Insurance required hereunder shall be in companies rated A-7 or better in “Best’s Insurance Guide.” Tenant shall deliver to Landlord prior to occupancy of
the Premises copies of policies of liability insurance required herein or certificates evidencing the existence and amounts of such insurance with loss payable clauses satisfactory to Landlord. No policy shall be cancelable or subject to reduction
of coverage except after thirty (30) days’ prior written notice to Landlord. Each policy of insurance required to be carried by Tenant shall name Landlord and such other parties in interest as Landlord reasonably designates as additional
insureds. 
  
 (c) Landlord shall, as a Direct Expense of the
Project, obtain and keep in force during the term of this Lease the following insurance coverage: (i) commercial general liability insurance insuring Landlord against any liability arising out of the ownership, use, occupancy or maintenance of the
Project and all areas appurtenant thereto, the minimum acceptable amount of such insurance being a combined single limit of $2,000,000.00 for each occurrence of bodily injury liability and/or property damage liability; (ii) “all risk” fire
and extended coverage property damage insurance insuring the Project for its full replacement value; and (iii) rent loss insurance providing coverage against direct or indirect loss of rent or rental value from all causes, including losses due to
fire or other casualty. 
  
 19. SERVICES AND UTILITIES.

  
 (a) With the exception of the Direct Expense exclusions
stated in Paragraph 7(d), Landlord agrees, subject to reimbursement by Tenant to Landlord of the cost thereof pursuant to Paragraph 7(a)(i), to provide to the Premises heat and air conditioning reasonably required for the comfortable use and
occupation of the Premises as reasonably required by Tenant, and electricity, gas, water, sewer service, janitorial service, and trash removal. As a Direct Expense of the Project, Landlord shall provide all utilities for the Common Areas of the
Project, landscaping and elevator services. Landlord shall not be liable for, and Tenant shall not be entitled to, any reduction of rental by reason of Landlord’s failure to furnish any of the foregoing when such failure is caused by power
disruptions, accident, breakage, repairs, strikes, lockouts or other labor disturbances or labor disputes of any character, or by any other cause beyond the reasonable control of Landlord, unless there is an interruption of utilities to the Project
or the Premises, such interruption substantially interferes with the normal conduct of Tenant’s business in the Premises, and such interruption continues for ten (10) consecutive business days or more, in which event Tenant shall be entitled to
an equitable abatement of Monthly Base Rent in proportion to the extent that normal conduct of Tenant’s business has been interfered with, commencing on the eleventh (11th) consecutive business day of such interruption, and continuing until the utilities or services are restored. Landlord shall not be liable under any
circumstances for a loss of or injury to property, however occurring, through or in connection with or incidental to failure to furnish any of the foregoing, or as a result of the failure or interruption of any utility or other service provided to
the Premises for any reason beyond the reasonable control of Landlord, including any failure of telephone or data cabling or telecommunications facilities. 
  
 (b) Tenant will not, without written consent of Landlord, use any apparatus or device in the Premises using in excess of two hundred eight (208) volts,
which will in any way increase the amount of electricity usually furnished or supplied for the use of the Premises as general office space; nor connect with electric current except through existing electrical outlets in the Premises, any apparatus
or device, for the purpose of using electric current. 
  

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 20. PERSONAL PROPERTY TAXES. Tenant shall pay, or cause to be paid, before delinquency, any and
all taxes levied or assessed and which become payable during the term upon Tenant’s equipment, furniture, fixtures and other personal property (“Tenant’s Personal Property”) located in the Premises. In the event any or all of the
Tenant’s Personal Property shall be assessed and taxed with the Premises, Tenant shall pay to Landlord such taxes attributable to Tenant’s Personal Property within ten (10) days after delivery to Tenant by Landlord of a statement in
writing setting forth the amount of such taxes attributable to Tenant’s Personal Property. 
  
 21. RULES AND REGULATIONS. Tenant shall faithfully observe and comply with the Rules and Regulations of the Project attached hereto as Exhibit
“D” and such other Rules and Regulations as Landlord may from time to time promulgate. Landlord reserves the right from time to time to make all reasonable modifications to said rules. The additions and modifications to those rules shall
be binding upon Tenant upon delivery of a copy of them to Tenant. Landlord shall not be responsible to Tenant for the nonperformance of any said rules by any other tenants or occupants. 
  
 22. NO RIGHT TO HOLDOVER. Tenant has no right to retain possession of the Premises, or any part thereof, beyond the
expiration or termination of this Lease. In the event that Tenant holds over, then the rent shall be increased to 125% of the said rent applicable immediately preceding the expiration or termination. Nothing contained herein shall be construed as
consent by Landlord to any holding over by Tenant. 
  
 23.
ENTRY BY LANDLORD. Landlord shall have the right at any and all times during any emergency or during normal business hours to enter the Premises, inspect the same, and supply any service to be provided by Landlord to Tenant hereunder.
Landlord shall also have the right, upon twenty-four (24) hours’ prior written notice to Tenant, to enter the Premises for the purpose of showing the Premises to prospective purchasers, tenants (but as to tenants only during the last three (3)
months of the term), or lenders, to post notices of non-responsibility, and to alter, improve or repair the Premises and any portion of the Building of which the Premises are a part that Landlord may deem necessary or desirable, without abatement of
rent and may for that purpose erect scaffolding and other necessary structures where reasonably required by the character of the work to be performed, always providing that the entrance to the Premises shall not be blocked thereby, and further
providing that the business of the Tenant shall not be interfered with unreasonably. Provided Landlord complies with the terms of this Paragraph, Tenant hereby waives any claim for damages or for any injury or inconvenience to or interference with
Tenant’s business, any loss of occupancy or quiet enjoyment of the Premises due to Landlord’s entry of the Premises. For each of the aforesaid purposes, Landlord shall at all times have and retain a key with which to unlock all of the
doors in, upon and about the Premises, excluding Tenant’s vaults, safes and files, and Landlord shall have the right to use any and all means which Landlord may deem proper to open said doors in an emergency, in order to obtain entry to the
Premises without liability to Tenant except for any failure to exercise due care for Tenant’s property. Landlord and its agents may, at any time during which Tenant is in default hereunder or within six months prior to the expiration of this
Lease, place on the Premises any usual or ordinary “to let” or “to lease” signs and exhibit the Premises to prospective tenants at reasonable hours. Landlord also may place on the Premises “for sale” signs at any time
during the term of this Lease and exhibit and show the Premises to prospective purchasers during reasonable business hours. The Premises shall not be shown or exhibited to prospective tenants or purchasers without Landlord or its agents first

  

 17 

 giving Tenant reasonable advance notice as required above. Any entry to the Premises obtained by Landlord by any of said
means, or otherwise shall not under any circumstances be construed or deemed to be a forcible or unlawful entry into, or a detainer of, the Premises, or an eviction of Tenant from the Premises or any portion thereof. 
  
 24. RECONSTRUCTION. 
  
 (a) In the event the Premises or the Building of which the Premises are a
part are damaged by fire or other perils fully covered by the proceeds of fire and extended coverage insurance received by Landlord, Landlord agrees forthwith to repair the same; and this Lease shall remain in full force and effect, except that
Tenant shall be entitled to a proportionate reduction of the Base Rent while such repairs are being made, such proportionate reduction to be based upon the extent to which the making of such repairs shall materially interfere with the business
carried on by the Tenant in the Premises. If the damage is due to the fault or neglect of Tenant or its employees, there shall be no abatement of rent. 
  
 (b) In the event the Premises or the Building is damaged as a result of any cause other than the perils covered by fire and extended coverage insurance,
then Landlord shall forthwith repair the same, provided the extent of the destruction is less than ten percent (10%) of the then full replacement cost of the Premises. In the event the destruction of the Premises or the Building is to an extent
greater than ten percent (10%) of the full replacement cost of the Premises, then Landlord shall have the option: (i) to repair or restore such damage, this Lease continuing in full force and effect, but the rent to be proportionately reduced as
provided in this Paragraph; or (ii) give notice to Tenant at any time within sixty (60) days after such damage terminating this Lease as of the date specified in such notice, which date shall be no less than thirty (30) and no more than sixty (60)
days after the giving of such notice. In the event of giving such notice, this Lease shall expire and all interest of the Tenant in the Premises shall terminate on the date so specified in such notice and the Base Rent, reduced by a proportionate
amount, based upon the extent, if any, to which such damage materially interfered with the business carried on by the Tenant in the Premises, and Additional Rent, shall be paid up to date of such termination. 
  
 (c) Notwithstanding anything to the contrary contained in this Paragraph,
Landlord shall not have any obligation whatsoever to repair, reconstruct or restore the Premises when the damage resulting from any casualty covered under this Paragraph occurs during the last twelve (12) months of the term of this Lease or any
extension thereof, in which event this Lease will be terminated. 
  
 (d) Landlord shall not be required to repair any injury or damage by fire or other cause, or to make any repairs or replacements of any panels, decoration, office fixtures, railings, floor covering, partitions, or any other property
installed in the Premises by Tenant. 
  
 (e) Except for rent
abatement as provided in this Lease, Tenant shall not be entitled to any compensation or damages from Landlord for loss of the use of the whole or any part of the Premises, Tenant’s personal property or any inconvenience or annoyance occasioned
by such damage, repair, reconstruction or restoration. 
  
 25.
DEFAULT. The occurrence of any one or more of the following events shall constitute a default and breach of this Lease by Tenant: 
  
 (a) The failure by Tenant to make any payment of rent or any other payment required to be made by Tenant hereunder, as and when due; 
  

 18 

 (b) The failure by Tenant to observe or perform any of the covenants, conditions or provisions of this
Lease to be observed or performed by Tenant, other than described in Paragraph 25(a), within the time period therefore specified herein, or if no time period is specified, where such failure shall continue for a period of thirty (30) days after
written notice thereof by Landlord to Tenant; provided, however, that if the nature of Tenant’s default is such that more than thirty (30) days are reasonably required for its cure, then Tenant shall not be deemed to be in default if Tenant
commences such cure within said thirty (30) day period and thereafter diligently prosecutes such cure to completion; or 
  
 (c) The making by Tenant of any general assignment or general arrangement for the benefit of creditors; or the filing by or against Tenant of a petition
to have Tenant adjudged a bankrupt, or a petition or reorganization or arrangement under any law relating to bankruptcy unless, in the case of a petition filed against Tenant, the same is dismissed within one hundred twenty (120) days; or the
appointment of a trustee or a receiver to take possession of substantially all of Tenant’s assets located at the Premises or of Tenant’s interest in this Lease, where possession is not restored to Tenant within sixty (60) days; or the
attachment, execution or other judicial seizure of substantially all of Tenant’s assets located at the Premises or of Tenant’s interest in this Lease, where such seizure is not discharged in thirty (30) days. 
  
 26. REMEDIES ON DEFAULT. In the event of any default or breach of this
Lease by Tenant, Landlord may at any time thereafter, with or without notice or demand, but in accordance with applicable law, and without limiting Landlord in the exercise of any other right or remedy that Landlord may have by reason of such
default or breach: 
  
 (a) Terminate this Lease and all rights of
Tenant hereunder by any lawful means, in which case this Lease shall terminate and Tenant shall immediately surrender possession of the Premises to Landlord. In such event Landlord shall be entitled to recover from Tenant all damages incurred by
Landlord by reason of Tenant’s default including, but not limited to, (i) the worth at the time of award of any unpaid rent which had been earned at the time of such termination; plus (ii) the worth at the time of award of the amount by which
the unpaid rent which would have been earned after termination until the time of award exceeds the amount of such rental loss that Tenant proves could have been reasonably avoided; plus (iii) the worth at the time of award of the amount by which the
unpaid rent for the balance of the term after the time of award exceeds the amount of such rental loss that Tenant proves could be reasonably avoided; plus (iv) any other amount necessary to compensate Landlord for all the detriment proximately
caused by Tenant’s failure to perform Tenant’s obligations under this Lease or which in the ordinary course of events would be likely to result therefrom, including, but not limited to, the cost of recovering possession of the Premises,
expenses of reletting, renovation and alteration of the Premises, reasonable attorney’s fees, and any real estate commissions. The “worth at the time of award” for purposes of subsections (i) and (ii) above is computed by allowing
interest at the maximum legal rate, and the “worth at the time of award” for purposes of subsection (iii) is computed by discounting such amount at the discount rate of the Federal Reserve Bank of San Francisco at the time of award plus
one percent (1%). In the event Tenant shall have abandoned the Premises, Landlord shall have the option of (x) taking possession of the Premises and recovering from Tenant the amount specified in this paragraph, (y) proceeding under the provisions
of the following Paragraph 26(b), and/or (z) exercising any other remedy allowed by law; 
  
 (b) Maintain Tenant’s right to possession, in which case this Lease shall continue in effect whether or not Tenant shall have abandoned the Premises. In such event Landlord shall be entitled to enforce all of
Landlord’s rights and remedies under this Lease, 
  

 19 

 including the right to recover the rent as it becomes due hereunder. Landlord may enter on and relet the Premises or any
part thereof to a third party or third parties for such term or terms and at such rental or rentals and on such other terms and conditions as Landlord in its sole discretion may deem advisable and shall have the right to make alterations and repairs
to the Premises. Tenant shall be liable for all Landlord’s costs in reletting, including but not limited to remodeling costs required for the reletting. In the event Landlord relets the premises, Tenant shall pay all rent due under and at the
times specified in this Lease, less any amount or amounts actually received by Landlord from the reletting. After a default by Tenant and continuing for so long as Landlord does not terminate this Lease, Tenant shall have the right to assign or
sublease the Premises subject only to reasonable limitations. The consent by Landlord to an assignment or sublease shall not release Tenant from liability under this Lease. In the event that Landlord elects to relet all or a portion of the Premises
following a default by Tenant, then rent received by Landlord from the reletting shall be applied: first, to the payment of any indebtedness other than rent due hereunder from Tenant to Landlord; second, to the payment of any cost of the reletting,
third, to the payment of the cost of any alterations and repairs to the Premises; fourth, to the payment of rent due and unpaid under this Lease. The residue, if any, shall be held by Landlord and applied in payment of future rent as the same may
become due and payable hereunder. Should that portion of rent received from the reletting during any month, which is applied to the payment of rent hereunder, be less than the rent payable during that month by Tenant hereunder, then Tenant shall pay
such deficiency to Landlord immediately on demand therefor by Landlord. Such deficiency shall be calculated and paid monthly. Tenant shall also pay to Landlord, as soon as ascertained, any costs and expenses incurred by Landlord in such reletting or
in making such alterations and repairs not covered by the rent received from the reletting. No act of Landlord, including but not limited to Landlord’s entry on the Premises, efforts to relet the Premises, or maintenance of the Premises, shall
be construed as an election to terminate this Lease unless a written notice of such intention is given to Tenant or unless the termination thereof is decreed by a court of competent jurisdiction. Notwithstanding the fact that Landlord elects to
continue the Lease in full force and effect after a default by Tenant and to relet the Premises, Landlord may at any time after such reletting elect to terminate this Lease for any such default; or 
  
 (c) Pursue any other remedy now or hereafter available to Landlord. All
rights, options and remedies of Landlord contained in this Lease shall be construed, and held to be, cumulative and no one of them shall be exclusive of the other, and Landlord shall have the right to pursue any one or all of such remedies or any
other remedy or relief which may now or hereafter be provided by law or in equity, whether or not stated in this Lease. No act or omission by any party shall be construed as an election to terminate this Lease unless a written notice of such
intention is given to Tenant. 
  
 (d) If Landlord shall default or
breach any terms, conditions or provisions of this Lease, Tenant shall provide Landlord with written notice detailing such default or breach. If Landlord fails to cure such default or breach within thirty (30) days after receipt of such notice from
Tenant (unless the nature of such default or breach reasonably requires more than thirty (30) days to cure, then Landlord shall not be deemed in default or breach of this Lease if Landlord has commenced cure within said thirty (30) day period and
thereafter diligently prosecutes such cure to completion), then Tenant shall have the right, to institute an action against Landlord for general damages or to pursue Tenant’s other remedies provided by law for such default or breach, but
excluding the right to recover exemplary or punitive damages from Landlord. 
  
 27. EMINENT DOMAIN. If more than twenty-five percent (25%) of the Building on the Premises shall be taken or appropriated by any public or quasi-public authority under the power 
  

 20 

 of eminent domain, either party hereto shall have the right, at its option, to terminate this Lease, and Landlord shall
be entitled to any and all income, rent, award, or any interest therein whatsoever which may be paid or made in connection with such public or quasi-public use or purpose, (except for any portion of the award specifically made to Tenant) and Tenant
shall have no claim against Landlord for the value of any unexpired term of this Lease. If either less than or more than twenty-five percent (25%) of the Building is taken, and neither party elects to terminate as herein provided, the rent
thereafter to be paid shall be reduced, based upon the square footage of the Building taken in relation to the square footage of the Building prior to the taking. If any part of the land area of the Premises is taken by eminent domain, Landlord
shall have the right at its option to terminate this Lease and shall be entitled to the entire award as above provided. 
  
 28. OFFSET STATEMENTS. Either party shall at any time and from time to time upon not less than ten (10) days prior written notice from the other
party execute, acknowledge and deliver to the requesting party a statement in writing (a) certifying that this Lease is unmodified and in full force and effect (or, if modified, stating the nature of such modification and certifying that this Lease
as so modified, is in full force and effect), and the date to which the rent and other charges are paid in advance, if any; (b) acknowledging that there are not, to the party’s knowledge, any uncured defaults on the part of the other party
hereunder, or specifying such defaults if any are claimed; and (c) setting forth any other matters which the other party may reasonably request. Either party’s failure to deliver this statement within such time shall be conclusive on the other
party that (i) this Lease is in full force and effect, without modification except as may be represented by the requesting party; (ii) there are no uncured defaults in the requesting party’s performance; and (iii) not more than one month’s
rent has been paid in advance. 
  
 29. PARKING. Tenant
shall have (i) the exclusive use of all parking spaces located under the Building, and (2) the non-exclusive right, in common with other tenants or occupants of the Project, to use three (3) surface parking spaces for every 1,000 square feet of the
Premises, subject to the Rules and Regulations which may be established or altered by Landlord at any time or from time to time during the term hereof. Tenant shall have the right, at Tenant’s expense, to mark for use by NetManage, Inc. a
portion of the surface parking spaces immediately adjacent to the Building, subject to Landlord’s prior written approval of the number and location of such marked surface spaces. 
  
 30 INTENTIONALLY OMITTED 
  
 31. AUTHORITY OF PARTIES; LIMITATION OF LIABILITY. 
  
 (a) Each individual executing this Lease on behalf of Tenant represents and warrants that he or she is duly authorized to execute and deliver this Lease
on behalf of Tenant, in accordance with a duly adopted resolution of the board of directors of Tenant or in accordance with the bylaws of Tenant, and that upon execution and delivery of this Lease by Tenant this Lease shall be binding upon Tenant in
accordance with its terms. The person executing this Lease on behalf of Landlord represents and warrants to Tenant that he or she is duly authorized to do so in accordance with Landlord’s governing documents, and that upon execution and
delivery of this Lease by Landlord, this Lease shall be binding upon Landlord in accordance with its terms. 
  
 (b) The obligations of Landlord under this Lease shall not constitute personal obligations of Landlord, the individual partners of Landlord or its or
their individual partners, directors, officers or shareholders, and Tenant shall look solely to the Project and to the rental 
  

 21 

 proceeds therefrom, and to no other assets of Landlord for the satisfaction of any liability of Landlord with respect to
this Lease, and shall not seek recourse against the individual partners of Landlord, or its or their individual partners, directors, officers or shareholders, or any of their personal assets for such satisfaction. It is understood and agreed that
any claims by Tenant against Landlord and collection efforts enforced against Landlord shall be limited to direct enforcement against Landlord’s interest in the Project and all rental proceeds therefrom. Tenant expressly waives any and all
rights to proceed directly against individual partners of Landlord, or against any officers, directors, shareholders, and any corporate general partner of Landlord. 
  
 32. BROKERS. Tenant warrants that it has had no dealings with any real estate broker or agents in connection with the
negotiation of this Lease except J. Volckmann & Associates, Inc., who represents Landlord exclusively, and Cresa Partners, who represents Tenant exclusively. 
  
 33. LANDLORD’S IMPROVEMENTS. Landlord agrees to cause to be performed at Landlord’s expense the
improvements to the Premises described as Landlord’s Work on Exhibit “B” attached hereto and incorporated by reference herein. Landlord shall also provide a tenant improvement allowance for the Tenant Improvement Work to be performed
by Tenant pursuant to Exhibit “B” attached hereto. 
  
 34. REVOCABLE LICENSE AND INDEMNIFICATION FOR USE OF EXERCISE FACILITIES. Landlord hereby grants to Tenant, its employees, officers and owners a revocable license to use in common with other tenants of the Project the exercise
facilities at Stevens Creek Office Center. Such facilities are provided by Landlord as a Direct Expense of the Project. Tenant understands and agrees that the exercise facility is a convenience provided solely for the benefit and use of tenants of
the Project and their employees, officers and owners, as Tenant may elect, and that Tenant shall be solely responsible for such use. Tenant accepts on behalf of itself, its employees, officers and owners all risks inherent in such use. Tenant agrees
that Landlord shall not be held responsible or liable in any way for any exercise training or instruction received by Tenant, its employees, officers or owners, including instruction on the use of weights, exercise machines or other equipment in the
facility. In consideration for this license, Tenant hereby waives any and all claims that Tenant may accrue against Landlord, its owners, officers, agents, employees, successors and assigns in connection with the use of such exercise facilities.
Tenant releases Landlord and agrees to hold harmless Landlord, its owners, officers, agents, employees, successors and assigns from and against any and all claims, demands or liabilities for any injuries, expenses, losses or damages in connection
with the use of such exercise facilities, and agrees to defend and indemnify Landlord, its owners, officers, agents, employees, successors and assigns from any and all demands, claims, or actions by any person using the exercise facilities under, or
under color of Tenant’s license, with or without Tenant’s express permission. This license may be suspended or revoked by Landlord at any time, in Landlord’s sole discretion, and such suspension or revocation will not limit or
extinguish Tenant’s waiver, release or indemnity hereunder. 
  
 35. GENERAL PROVISIONS. 
  
 (a) Plats and
Riders. Clauses, plats and riders, if any, signed or initialed by the Landlord and the Tenant and endorsed on or affixed to this Lease are a part hereof. 
  
 (b) Waiver. The waiver by each party of, or the failure by each party to take action with respect to any breach by the other party of any term,
covenant, or condition contained in this Lease shall not be deemed to be a waiver of the term, covenant, or condition 
  

 22 

 or any subsequent breach of the same or any other term, covenant, or condition contained herein. The subsequent
acceptance of rent hereunder by Landlord shall not be deemed to be a waiver of any preceding breach by Tenant of any term, covenant, or condition of this Lease, other than the failure of Tenant to pay the particular rent so accepted, regardless of
Landlord’s knowledge of this preceding breach at the time of acceptance of the rent. 
  
 (c) Notices. All notices and demands which may or are to be required or permitted to be given by either party to the other hereunder shall be in writing. All notices and demands shall be: (i) personally
delivered, and considered effective upon receipt or (ii) sent by United States Mail, postage prepaid, addressed as set forth in the Basic Lease Information, or in the case of Tenant, to the Premises, and shall be considered effective three (3) days
after mailing, and shall be considered effective upon confirmation of receipt. Either party may specify a different address for notice purposes by written notice to the other. 
  
 (d) Joint Obligation. If there is more than one Tenant the obligations hereunder imposed upon Tenants shall be joint
and several. 
  
 (e) Marginal Headings. The headings and
titles of the Paragraphs of this Lease are not a part of this Lease and shall have no effect upon the construction or interpretation of any part hereof. 
  
 (f) Time. Time is of the essence of this Lease and each and all of its provisions in which performance is a factor. 
  
 (g) Successors and Assigns. The covenants and conditions herein
contained, subject to the restrictions on assignment, apply to and bind the heirs, successors, executors, administrators and assigns of the parties hereto. 
  
 (h) Recordation. Neither Landlord nor Tenant shall record this Lease or a short form memorandum hereof without the prior written consent of the
other party. 
  
 (i) Surrender of the Premises. Immediately
prior to the expiration or upon the earlier termination of this Lease, Tenant shall remove all of Tenant’s trade fixtures and other personal property, repair all damage caused by the installation and removal of such property, and vacate and
surrender the Premises to Landlord in the same condition as required in Paragraph 12 above, including removal by Tenant, at Tenant’s expense, of any Alterations made by Tenant if Landlord’s consent to such Alterations was conditioned upon
Tenant’s removal thereof. The failure of Tenant to timely vacate the Premises without the express written approval of Landlord shall constitute a holdover under the provisions of Paragraph 22. 
  
 (j) Late Charges and Interest. Tenant hereby acknowledges that late
payment by Tenant to Landlord of rent or other sums due hereunder will cause Landlord to incur costs not contemplated by this Lease, the exact amount of which will be extremely difficult to ascertain. Such costs include, but are not limited to,
processing and accounting charges, and late charges that may be imposed upon Landlord by terms of any mortgage or trust deed covering the Premises. Accordingly, if any installment of rent or of a sum due from Tenant shall not be received by Landlord
or Landlord’s designee within five (5) days after such amount is due, then Tenant shall pay to Landlord a late charge equal to five percent (5%) of such overdue amount. The parties hereby agree that such late charges represent a fair and
reasonable estimate of the cost that Landlord will incur by reason of the late payment by Tenant. Acceptance of such late charges by the Landlord shall in no event constitute a waiver of Tenant’s default with respect to such overdue amount, nor
prevent Landlord from exercising 
  

 23 

 any of the other rights and remedies granted hereunder. Any monetary payment due Landlord hereunder, other than late
charges, not received by Landlord, when due as to scheduled payments or within 30 days following the date on which it was due for non-scheduled payment, shall bear interest from the date when due, as to scheduled payments, or the 31st day after it
was due as to non-scheduled payments. The interest charged shall be equal to the prime rate reported in the Wall Street Journal as published closest prior to the date when due plus two percent (2%), but shall not exceed the maximum rate allowed by
law in the State of California. Interest is payable in addition to the potential late charge hereinabove. 
  
 (k) Attorneys’ Fees. If any action at law or in equity shall be brought to recover any rent under this Lease, or for or on account of any
breach of, or to enforce or interpret any of the covenants, terms, or conditions of this Lease, or for the recovery of possession of the Premises, the prevailing party in any such action shall be entitled to recover from the other party as part of
the prevailing party’s costs reasonable attorneys’ fees, the amount of which shall be fixed by the court having jurisdiction and shall be made a part of any judgment rendered. 
  
 (l) Sale of Premises by Landlord. In the event of the sale or transfer of the Premises by Landlord, Landlord shall be
and is hereby entirely freed and relieved of all liability under any and all of its covenants and obligations contained in or derived from this Lease arising after such sale or transfer, provided that Landlord shall transfer any security deposit
held by Landlord to the purchaser or transferee of the Premises in accordance with California law. 
  
 (m) Subordination, Attornment. This Lease shall be subordinate to the lien of any mortgage or deed of trust, to any bank or other lender, now or
hereafter in force against the Premises and the real property on which it is located, provided that any such lender agrees in its security instrument or by separate written instrument that it shall not disturb the possession of Tenant in the event
of foreclosure or of a purchase in lieu of foreclosure if Tenant is not then in default under the terms of this Lease. Any lender referred to herein shall have the right to treat this Lease as prior to the lien of its mortgage or deed of trust.
Tenant agrees to execute, in recordable form, any reasonable instrument requested by a lender or Landlord to carry out the purposes of this Paragraph. In the event any proceedings are brought for foreclosure, or in the event of the exercise of the
power of sale under any mortgage or deed of trust made by the Landlord covering the Premises, or any part thereof, the Tenant shall attorn to the purchaser on any such foreclosure or sale and recognize such purchaser as the Landlord under this
Lease. Landlord shall provide to Tenant a non-disturbance agreement in favor if Tenant from any existing Lender on the Project. 
  
 (n) Default by Landlord. Provided that Tenant has received an executed non-disturbance agreement from any holder of a security interest in the
Premises, in the event of any default on the part of Landlord, Tenant shall give notice by registered mail to any holder of a security interest in the Premises whose name has been provided to Tenant and shall offer such party a reasonable
opportunity to cure the default, including a reasonable time to obtain possession of the Premises by power of sale or judicial foreclosure or other appropriate legal proceedings, if such should prove necessary to effect a cure. 
  
 (o) Name. Tenant shall not use the name of the Building or of Project
for any purpose other than as an address of the business to be conducted by the Tenant in the Premises. 
  

 24 

 (p) Severability. Any provision of this Lease which shall prove to be invalid, void or illegal
shall in no way affect, impair or invalidate any other provision hereof and such other provisions shall remain in full force and effect. 
  
 (q) Cumulative Remedies. No remedy or election hereunder shall be deemed exclusive but shall, wherever possible, be cumulative with all other
remedies at law or in equity. 
  
 (r) Choice of Law. This
Lease shall be governed by the laws of the State in which the Premises are located. 
  
 (s) Quiet Enjoyment. Subject to Tenant’s full and timely performance of all of Tenant’s obligations under this Lease and subject to the terms of this Lease, Tenant shall have the quiet enjoyment of
the Premises throughout the term as against any person or entities lawfully claiming by, through or under Landlord. 
  
 (t) Signs and Auctions. Subject to Tenant obtaining all necessary approvals from the City of Cupertino and subject to Landlord’s review and
approval of plans and specifications for any proposed signage, which approval shall not be unreasonably withheld, conditioned or delayed, Tenant shall have the right to install, at Tenant’s expense, Tenant identification signage on the
Building, a monument sign for the Premises, and identification signage on the glass entry doors to the Building. 
  
 (u) Submission of Lease. If this Lease has been filled in, it has been prepared for submission to Tenant and Tenant’s attorney for their
approval. No representation or recommendation is made by the real estate broker or its agents or employees as to the legal sufficiency, legal effect, or tax consequences of this Lease or the transactions relating thereto. This Lease shall not be
effective or binding on any party until fully executed and delivered by both parties hereto. 
  
 (v) Entire Agreement. This Lease contains the entire agreement of the parties hereto with respect to any matter covered or mentioned in this Lease, and no prior agreements, understanding or representation
pertaining to any such matters shall be effective for any purpose. No provision of this Lease may be amended or added to except by an agreement in writing signed by the parties hereto or their respective successors in interest. 
  
 (w) Interpretation. The language of all parts of this Lease shall in
all cases be construed as a whole, according to its fair meaning, and not strictly for or against either Landlord or Tenant, regardless of which party drafted the language. 
  
 (x) Waiver of Jury Trial. Tenant hereby waives the right to have any dispute relating to this Agreement or in any way
relating to Tenant’s occupancy of the Leased premises, tried before a jury. 
  

 25 

 IN WITNESS WHEREOF, the parties hereto have executed this Lease intending to be bound as of the last date
set forth below. 
  

					
	 	 	 LANDLORD:

		
	 	 	 STEVENS CREEK OFFICE CENTER ASSOCIATES,
 a California limited partnership

			
	 	 	 BY:
	 	 J. VOLCKMANN & ASSOCIATES, INC.

	 	 	 	 	 Its Managing Agent

			
	 Date: June 16, 2004
	 	 By:
	 	 /s/    John Volckmann

	 	 	 	 	John Volckmann
	 	 	 	 	Chairman
		
	 	 	 TENANT:

		
	 	 	 NETMANAGE, INC.,
 a Delaware corporation

			
	 Date: June 16, 2004
	 	 By:
	 	 /s/    Zvi Alon

	 	 	 Its:
	 	 Zvi Alon

  

 26 

 Description of the Premises 
  
 The Premises consist of approximately 24,555 rentable square feet located in Building 20883 Stevens Creek Blvd., Cupertino, CA 95014, as
illustrated below. 
  

 EXHIBIT “A” 

 TENANT IMPROVEMENTS 
  
 1. Tenant Improvement Work. 
  

(a) Within ten (10) days following the execution and delivery of this Lease by the parties, Tenant shall cause to be prepared and completed by an
architect selected by Tenant, and approved by Landlord, Preliminary Plans and Specifications for the tenant improvement work to the Premises to be performed by Tenant (the “Tenant Improvement Work”). Said Preliminary Plans and
Specifications shall be subject to Landlord’s approval, which approval shall not be unreasonably withheld or delayed. Landlord shall provide Tenant with a tenant improvement allowance of $200,000 (the “Tenant Improvement Allowance”)
to be used exclusively to design and construct the Tenant Improvements, including the installation of Tenant’s telecommunications equipment, electrical cabling, security system, and for Tenant’s cubicles. All of such work shall be
performed by a contractor approved by Landlord as set forth in 1(b) below. The entire balance of the cost of the Tenant Improvement Work shall be paid by Tenant, except that the cost of Landlord’s Work required to cause the Premises to comply
with the requirements of the City Building Department and the County Fire Department with respect to the building code and the fire code, including the requirements of Title 24 and the Americans With Disabilities Act, as of the Commencement Date
shall be paid by Landlord pursuant to Paragraph 2 below, and such cost shall not be charged to the Tenant Improvement Allowance. The Tenant Improvement Allowance shall be paid promptly by Landlord to Tenant as Tenant incurs the related expenses and
upon written request by Tenant to Landlord accompanied by copies of the invoices submitted to Tenant by Tenant’s contractor for progress payments on the Tenant Improvement Work, or by copies of invoices for the other items referred to above.

  
 (b) Tenant shall enter into a construction contract with a
general contractor for the performance of the Tenant Improvement Work. Said construction contract shall be subject to Landlord’s approval, which approval shall not be unreasonably withheld or delayed. Tenant shall supervise the construction of
the Tenant Improvements by the contractor. Tenant shall designate a project representative as the single point of contact for communication throughout the design, construction and move-in process. All designs, plans, materials, contractors,
subcontractors, consultants and scheduling of any work performed by or on behalf of Tenant, shall be expressly subject to Landlord’s prior review and approval, which approval shall not be unreasonably withheld or delayed. 
  
 (c) Landlord will grant access to the Premises to Tenant at no charge upon
the execution and delivery of this Lease for the purpose of planning, constructing, installing and outfitting the Premises for Tenant’s use, subject to Tenant providing Landlord with evidence that Tenant’s commercial general liability
insurance is in effect. Upon access being delivered to Tenant by Landlord, Tenant shall pay the cost of all electricity, gas and janitorial expenses incurred as a result of Tenant’s early access to the Premises. 
  
 2. Landlord’s Work. Landlord shall cause to be performed, at
Landlord’s expense, prior to the Rent Commencement Date, the work required to cause the Premises to comply with the requirements of the City Building Department and the County Fire Department with respect to the building code and the fire code,
including the requirements of Title 24 and the Americans With Disabilities Act (“Landlord’s Work”), including but not limited to the following: 
  

(a) Designation and necessary improvements for handicap parking spaces, including a van accessible parking stall at the front entry to the Building;

  
 (b) ADA (and if necessary building code and fire code)
required improvements to the entries, exits, stairways and bathrooms; 
  

 EXHIBIT “B” 

 (c) ADA required work to the elevator; 
  
 (d) Metal suspension system for acoustical ceiling tile to be supported in accordance with UBC requirements as they pertain
to the earthquake zone in which the Building is located; and 
  
 (e) Electrical wiring in the ceiling plenum will either be “chased out” if not necessary or properly secured, and all open boxes closed. 
  

							
	 	 	 APPROVED:

		
	 	 	 LANDLORD:

		
	 	 	 STEVENS CREEK OFFICE CENTER ASSOCIATES,
 a California limited partnership

			
	 	 	 BY:
	 	 J. VOLCKMANN & ASSOCIATES, INC.

	 	 	 	 	 Its Managing Agent

				
	 Date: June 16, 2004
	 	 	 	 By:
	 	 /s/     John Volckmann

	 	 	 	 	 	 	 John Volckmann

	 	 	 	 	 	 	 Chairman

		
	 	 	 TENANT:

		
	 	 	 NETMANAGE, INC.,
 a Delaware corporation

			
	 Date: June 16, 2004
	 	 By:
	 	 /s/     Zvi Alon

	 	 	 Its:
	 	 

  

 EXHIBIT “B” 
 Page 2 

 COMMENCEMENT DATE MEMORANDUM 
  
 THIS COMMENCEMENT DATE MEMORANDUM dated, for reference purposes only, as of the
         day of             , 2004 is made by and between Stevens Creek Office Center Associates, a California limited partnership
(Landlord) and NetManage, Inc., a Delaware corporation (“Tenant”). 
  
 RECITALS 
  
 A. Landlord
and Tenant are parties to that certain Office Lease dated, for reference purposes only, as of June 15, 2004 (the “Lease”). Unless otherwise defined, capitalized terms used herein shall have the same meanings as given them in the Lease.

  
 B. Pursuant to Paragraph 3 of the Lease, the parties desire to
confirm certain matters pertaining to the Lease. 
  
 AGREEMENT 
  
 NOW, THEREFORE, the parties agree as
follows: 
  
 1. The Commencement Date and the Rent Commencement
Date of the Lease is                     , 2004. 
  
 2. The Expiration Date of the Lease is
                    , subject to the option to extend in Paragraph 4 of the Lease. 
  
 3. The rentable square footage of the Premises is
                    . 
  
 4. This Memorandum may be executed in counterparts, each of which shall be deemed an original, and both of which together shall constitute one and the
same instrument. 
  
 IN WITNESS WHEREOF, the parties have executed
this Memorandum as of the date first above written. 
  

									
	 LANDLORD:
	 	 TENANT:

		
	 STEVENS CREEK OFFICE CENTER ASSOCIATES,
 a California limited partnership
	 	 NETMANAGE, INC.,
 a Delaware corporation

				
	 BY:
	 	 J. VOLCKMANN & ASSOCIATES, INC.
	 	 	 	 
	 	 	 Its Managing Agent
	 	 	 	 
					
	 	 	 By:
	 	  

	 	 By:
	 	  

	 	 	 	 	 John Volckmann
	 	 Its:
	 	 
	 	 	 	 	 Chairman
	 	 	 	 
			
	 	 	 Date:
                    , 2004
	 	 Date:
                    , 2004

  

 EXHIBIT “C” 

 RULES AND REGULATIONS OF STEVENS CREEK OFFICE CENTER 
  
 1. No sign, placard, picture, advertisement, name or notice shall be inscribed, displayed or
printed or affixed on or to any part of the outside or inside of the Building without the written consent of Landlord first had and obtained and Landlord shall have the right to remove any such sign, placard, picture, advertisement, name or notice
without notice to and at the expense of Tenant. 
  
 2. All approved signs or
lettering on doors shall be printed, painted, affixed or inscribed at the expense of Tenant by a person approved by Landlord. 
  
 3. Tenant shall not place anything or allow anything to be placed near the glass of any window, door, partition or wall which may appear unsightly from outside the
Premises; provided, however, that Landlord may furnish and install a Building standard window covering at all exterior windows. Tenant shall not without prior written consent of Landlord cause or otherwise allow the sunscreening or tinting of any
window. 
  
 4. The sidewalks, driveways, parking lots, landscaped areas, public
plazas and decks, halls, passages, exits, entrances, elevators and stairways shall not be altered or obstructed by any tenant or used for any purpose other than for ingress and egress from their respective Premises. Parking areas are provided for
the use of Tenant’s employees during normal business hours and shall not be used for the long term storage of motor vehicles (except for Tenant’s company van which may be stored on the Project in a location approved by Landlord), or any
other use. This lease creates no right in Tenant to use the secure (underground) parking areas except as provided in the Lease and Tenant shall have no right to use covered parking except as specifically authorized by Landlord, which use is subject
to Landlord’s sole and absolute discretion. 
  
 5. Tenant shall not alter any
lock or install any new or additional locks or any bolts on any doors or windows of the Premises. 
  
 6. The toilet rooms, urinals, wash bowls and other apparatus shall not be used for any purpose other than that for which they were constructed and no foreign substance of any kind whatsoever shall be thrown therein.
The expense of any breakage, stoppage or damage resulting from the violation of this rule shall be borne by the Tenant who, or whose employees or invitees, shall have caused it. 
  
 7. Tenant shall not use the gym, nor allow its employees to use the gym, until each such user has been instructed on the safe use of the
equipment and signed a release indemnifying Landlord from any and all liabilities arising in connection with the use of the gym. Tenant acknowledges that the gym is for the use of tenants of the Project only and will not allow others to use it; that
the gym is made available as a convenience to the tenants of the Project; and that Landlord makes no representations as to the safety of the equipment or the suitability for use by any particular user. Tenant and its employees use the gym and its
equipment at their own risk and Tenant indemnifies and holds harmless Landlord from any and all claims by Tenant, its employees, agents, contractors, guests and invitees. 
  
 8. Tenant shall not overload the floor of the Premises or in any way deface the Premises or any part thereof. No furniture, freight or
equipment of any kind shall be brought into the Building without the prior notice to Landlord and all moving of the same into or out of the Building shall be done at such time and in such manner as Landlord shall designate. Landlord shall have the

  

 EXHIBIT “D” 

 right to prescribe the weight, size and position of all safes and other heavy equipment brought into the Building and
also the times and manner of moving the same in and out of the Building. Safes or other heavy objects shall, if considered necessary by Landlord, stand on supports of such thickness as is necessary to properly distribute the weight. Landlord will
not be responsible for loss of or damage to any such safe or property from any cause and all damage done to the Building by moving or maintaining any such safe or other property shall repaired at the expense of Tenant. 
  
 9. Tenant shall not use, keep or permit to be used or kept any foul or noxious gas or
substance in the Premises, or permit or suffer the Premises to be occupied or used in a manner offensive or objectionable to the Landlord or other occupants of the Building by reason of noise, odors and/or vibrations, or interfere in any way with
other tenants or those having business therein, nor shall any animals or birds be brought in or kept in or about the Premises or the Building. 
  
 10. The Premises shall not be used for the storage of merchandise, for washing clothes, for lodging, or for any improper, objectionable or immoral purposes. 

 
 12. Tenant shall not use or keep in the Premises, the Building or the Project any
kerosene, gasoline or inflammable or combustible fluid or material, or use any method of heating or air conditioning other than that supplied by Landlord. 
  
 13. Landlord will direct electricians as to where and how telephone and telegraph wires are to be introduced. No boring or cutting for wires will be allowed without the
consent of the Landlord. The location of telephones, call boxes and other office equipment affixed to the Premises shall be subject to the approval of Landlord. 
  

14. On Saturdays, Sundays and legal holidays, and on other days between the hours of 6:00 p.m. and 8:00 a.m. the following day, access to the Building, or to the
halls, corridors, elevators or stairways in the Building, or to the Premises may be refused unless the person seeking access is known to the person or employee of the Building in charge and has a pass or is properly identified. The Landlord shall in
no case be liable for damages for any error with regard to the admission to or exclusion from the Building of any person. In case of invasion, mob, riot, public excitement, or other commotion, the Landlord reserves the right to prevent access to the
Building during the continuance of the same by closing of the doors or otherwise, for the safety of the tenants and protection of property in the Building and the Project. 
  
 15. Landlord reserves the right to exclude or expel from the Building any person who, in the judgment of Landlord, is intoxicated or under
the influence of liquor or drugs, or who shall in any manner do any act in violation of any of the Rules and Regulations of the Project. 
  
 16. No vending machine or machines of any description shall be installed, maintained or operated upon the Premises without the written consent of the Landlord.

  
 17. Landlord shall have the right, exercisable without notice and without
liability to Tenant, to change the name and street address of the Building of which the Premises are a part. 
  
 18. Tenant shall not disturb, solicit, or canvass any occupant of the Project and shall cooperate to prevent same. 
  

 EXHIBIT “D” 
 Page 2 

 19. Without the written consent of Landlord, Tenant shall not use the name of the Project in connection with or in
promoting or advertising the business of Tenant except as Tenant’s address. 
  
 20. Landlord shall have the right to control and operate the public portions of the Building and the Project, and the public facilities, and heating and air conditioning, as well as facilities furnished for the common use of the tenants, in
such manner as it deems best for the benefit of the tenants generally. 
  
 21. All
entrance doors in the Premises shall be left locked when the Premises are not in use, and all doors opening to public corridors shall be kept closed except for normal ingress and egress from the Premises. 
  

 EXHIBIT “D” 
 Page 3Stock Purchase Agreement

 Exhibit 10.21 
  
  
  
 STOCK PURCHASE AGREEMENT 
  
 BY AND AMONG 
  
 NETMANAGE, INC. 

 
 AND 
  
 LIBRADOS, INC. 
  
 AND 
  
 THE SHAREHOLDERS OF 
  
 LIBRADOS, INC. 
  
  
  
 Dated September 22, 2004 
  

 STOCK PURCHASE AGREEMENT 
  
 THIS STOCK PURCHASE AGREEMENT, dated as of September 22, 2004
(together with the appendices and schedules attached hereto, the “Agreement”) is by and among NetManage, Inc., a Delaware corporation (“NMI”), Librados, Inc., a Delaware corporation (the “Company”),
and the holders of all of the issued and outstanding shares of capital stock of the Company, as set forth on Schedule A hereto (each a “Shareholder” and together the “Shareholders”). 
  
 WHEREAS, the Shareholders desire to convey to NMI and NMI
desires to acquire from the Shareholders all of the issued and outstanding capital stock of the Company upon and subject to the terms and conditions set forth herein; 
  
 NOW, THEREFORE, in consideration of the mutual premises, covenants and agreements set forth
herein and in reliance upon the representations and warranties contained herein, the parties hereto covenant and agree as follows: 
  
 1. DEFINITIONS 
  
 “2003 Financial Statements” shall have the meaning ascribed to it in Section 3.7. 
  
 “Acknowledgement and Release Agreement” shall have the
meaning ascribed to it in Section 6.15. 
  
 “Acquisition
Target” shall have the meaning ascribed to it in Section 5.3(b). 
  
 “Affiliate” has the meaning set forth in Rule 12b-2 of the regulations promulgated under the Exchange Act. 
  
 “Affiliated Group” means any affiliated group within the meaning of Code §1504(a) or any similar group defined under a similar
provision of state, local or foreign law. 
  
 “Applicable
Rate” means 5% per annum computed on the basis of a year of 365 days. 
  
 “Assets” shall have the meaning ascribed to it in Section 3.14. 
  
 “Business” means the Company’s and its Subsidiaries’ business of researching, developing, producing, manufacturing, packaging,
marketing, distributing and selling the Java Adaptor Product Lines. 
  
 “Cash Consideration” shall have the meaning ascribed to it in Section 2.2(a). 
  
 “Claim Notice” shall have the meaning ascribed to it in Section 8.4(a). 
  
 “Closing Cash Consideration” shall have the meaning ascribed to it in Section 2.2(a). 
  

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 “Closing Date” shall have the meaning ascribed to it in Section 2.6(a). 
  
 “Closing Purchase Price” shall have the meaning ascribed to
it in Section 2.2(a). 
  
 “Closing” shall have
the meaning ascribed to it in Section 2.6(a). 
  
 “COBRA” means the requirements of Part 6 of Subtitle B of Title I of ERISA and Code §4980B and of any similar state law. 
  
 “Code” means the Internal Revenue Code of 1986, as amended. 
  
 “Company Contracts” shall have the meaning ascribed to it in Section 3.13(a). 
  
 “Company Intellectual Property” shall have the meaning
ascribed to it in Section 3.19(c). 
  
 “Company
Shares” means all of the issued and outstanding shares of the common stock, $0.0001 par value per share, of the Company. 
  
 “Confidential Information” means any information concerning the businesses and affairs of the Company and its Subsidiaries that is not
already generally available to the public. 
  
 “Disclosure
Schedule” shall have the meaning ascribed to it in Section 3. 
  
 “Distribution Percentage” means the respective percentage of the Final Purchase Price, Preliminary Purchase Price, Closing Purchase Price, Escrow Amount and/or Earn-Out to be distributed to each Shareholder, as applicable.
For each Shareholder, the respective distribution percentage shall be determined by reference to the table set forth in Schedule A attached hereto. 
  
 “Divested Business” means a sale, license or other disposition for consideration of the Business or one or more of the Java Adaptor
Product Lines to an unaffiliated third party after the Closing Date. 
  
 “Earn-Out” shall have the meaning ascribed to it in Section 2.4(a). 
  
 “Earn-Out Credit” shall have the meaning ascribed to it in Section 2.4(a). 
  
 “Earn-Out Revenue” means the revenues of the Company, recognized in accordance with GAAP as adopted and applied by NMI, generated during
the Revenue Measurement Period, and as increased by Earn-Out Credits, if any. For purposes of this definition, such revenues shall consist solely of revenues related to license (source or object code licenses) agreements and related maintenance and
consulting contracts for any products in the Java Adaptor Product Lines currently produced by the Company and sold directly to Independent Software Vendors and End-User customers, and shall in no event include (i) any revenues generated from sales
of adaptor licenses which were sold in conjunction with any NMI products and (ii) without the prior written approval of NMI, any revenues generated from direct or indirect sales to any Person that competes with any business of NMI. 
  

 - 2 - 

 “Employee Benefit Plan” means any “employee benefit plan” (as such term is
defined in ERISA §3(3)) and any other employee benefit plan, program or arrangement of any kind. 
  
 “Employee Pension Benefit Plan” has the meaning set forth in ERISA §3(2). 
  
 “Employee Proprietary Information and Inventions Agreement”
shall have the meaning ascribed to it in Section 6.6(b). 
  
 “Employee Welfare Benefit Plan” has the meaning set forth in ERISA §3(1). 
  
 “End-User” means any person or entity who acquires products from the Company for its own internal use and not for resale. 
  
 “Environmental and Safety Requirements” shall mean all
federal, state, local and foreign statutes, regulations, ordinances and other provisions having the force or effect of law, all judicial and administrative orders and determinations, all contractual obligations and all common law, in each case
concerning public health and safety, worker health and safety and pollution or protection of the environment, including, without limitation, all those relating to the presence, use, production, generation, handling, transport, treatment, storage,
disposal, distribution, labeling, testing, processing, discharge, release, threatened release, control or cleanup of any hazardous or otherwise regulated materials, substances or wastes, chemical substances or mixtures, pesticides, pollutants,
contaminants, toxic chemicals, petroleum products or byproducts, asbestos, polychlorinated biphenyls, noise or radiation, as the foregoing are enacted and in effect prior to or on the Closing Date. 
  
 “ERISA” means the Employee Retirement Income Security Act of
1974, as amended. 
  
 “Escrow Account” shall have
the meaning ascribed to it in Section 2.3(c). 
  
 “Escrow
Agent” shall have the meaning ascribed to it in Section 2.3(c). 
  
 “Escrow Agreement” shall have the meaning ascribed to it in Section 2.3(c). 
  
 “Escrow Amount” shall have the meaning ascribed to it in Section 2.3(c). 
  
 “Exchange Act” means the Securities Exchange Act of 1934, as amended. 
  
 “Final Purchase Price” means the Preliminary Purchase Price
plus the Earn-Out. 
  
 “Financial
Statements” shall have the meaning ascribed to it in Section 3.7. 
  
 “Founders” means David James Richards, James Milton Campigli, and Mohammad Naeem Akhtar. 
  

 - 3 - 

 “Fundamental Representations” shall have the meaning ascribed to it in Section 8.1.

  
 “GAAP” means United States generally accepted
accounting principles as in effect from time to time. 
  
 “Governmental Entity” means a court, administrative agency or commission or other governmental authority or instrumentality, whether domestic or foreign. 
  
 “Guaranty” shall mean any agreement, undertaking or arrangement by which any Person guarantees, endorses or
otherwise becomes or is contingently liable upon the debt, obligation or other liability of any other Person (other than by endorsements of instruments in the ordinary course of collection), or guarantees of the payment of dividends or other
distributions upon the shares of any other Person. 
  
 “Indebtedness” shall mean, with respect to any Person at any date, without duplication: (i) all obligations of such Person for borrowed money or in respect of loans or advances; (ii) all obligations of such Person evidenced
by bonds, debentures, notes or other similar instruments (including, without limitation, any seller notes issued in connection with any acquisition undertaken by the Company or any of its Subsidiaries); (iii) all obligations in respect of letters of
credit, whether or not drawn, and bankers’ acceptances issued for the account of such Person; (iv) all capitalized lease liabilities of such Person; (v) all interest rate protection agreements of such Person (valued on a market quotation
basis); (vi) all obligations of such Person secured by a contractual lien; (vii) all Guarantees of such Person in connection with any of the foregoing; and (viii) any accrued interest, prepayment premiums or penalties or other costs or expenses
related to any of the foregoing or incurred due to the transactions contemplated hereby. 
  
 “Indemnified Party” shall have the meaning ascribed to it in Section 8.4. 
  
 “Indemnifying Party” shall have the meaning ascribed to it in Section 8.4. 
  
 “Indemnity Notice” shall have the meaning ascribed to it in Section 8.4(d). 
  
 “Independent Accounting Firm” shall have the meaning
ascribed to it in Section 2.4(d). 
  
 “Independent
Software Vendors” means any company or entity which sells software that was originally created or manufactured by or for a different company or entity. 
  

“Insider” means (i) any officer, director or stockholder of the Company or any of its Subsidiaries; (ii) any individual related by
blood, marriage or adoption to any individual listed in clause (i) hereof; or (iii) any Person in which any individual listed in clauses (i) or (ii) hereof has a beneficial interest. 
  
 “Intellectual Property” shall have the meaning ascribed to it in Section 3.19. 
  

 - 4 - 

 “IP Assignment Letter Agreement” shall have the meaning ascribed to it in Section
6.6(b). 
  
 “IRS” means the United States
Internal Revenue Service. 
  
 “Java Adaptor Product
Lines” means the Company’s Java J2EE standards-based application integration solutions, which feature a suite of application adapters that expose back-end enterprise functionality on a consistent basis from systems such as SAP R/3,
Siebel, PeopleSoft, Oracle and others in a wide variety of formats, such as XML and Web services. 
  
 “Knowledge” means (i) in the case of the Shareholders, to the best of each Shareholder’s knowledge after consultation with the
Founders; (ii) in the case of NMI, to the best of the knowledge of NMI’s chief executive officer and chief financial officer; and (iii) in the case of the Company, to the best of each Founder’s knowledge. 
  
 “Landlord” shall have the meaning ascribed to it in Section
6.9. 
  
 “Latest Balance Sheet” shall have the
meaning ascribed to it in Section 3.8. 
  
 “Latest
Financial Statements” shall have the meaning ascribed to it in Section 3.7. 
  
 “Leased Real Property” means all leasehold or subleasehold estates and other rights to use or occupy any land, buildings, structures, improvements, fixtures, or other interest in real property held by
the Company. 
  
 “Leases” means all leases,
subleases, licenses, concessions and other agreements (written or oral), including all amendments, extensions, renewals, guaranties, and other agreements with respect thereto, pursuant to which the Company or any of its Subsidiaries holds any Leased
Real Property, including the right to all security deposits and other amounts and instruments deposited by or on behalf of the Company or any of its Subsidiaries thereunder. 
  
 “Lien” means any mortgage, pledge, security interest, conditional sale or other title retention agreement,
encumbrance, lien, easement, option, debt, charge, claim or restriction of any kind. 
  
 “Losses” shall have the meaning ascribed to it in Section 8.4. 
  
 “Material Adverse Effect” or “Material Adverse Change” means any effect or change that would be (or could reasonably be
expected to be) materially adverse to the business, assets, condition (financial or otherwise), operating results, operations, or business prospects of the Company, or to the ability of the Shareholders to consummate timely the transactions
contemplated hereby (regardless of whether or not such adverse effect or change can be or has been cured at any time or whether NMI has knowledge of such effect or change on the date hereof), including any adverse change, event, development, or
effect arising from or relating to (i) general business or economic conditions, including such conditions related to the business of the Company, (ii) national 
  

 - 5 - 

 or international political or social conditions, including the engagement by the United States in hostilities, whether or
not pursuant to the declaration of a national emergency or war, or the occurrence of any military or terrorist attack upon the United States, or any of its territories, possessions, or diplomatic or consular offices or upon any military
installation, equipment or personnel of the United States, (iii) financial, banking, or securities markets, (iv) changes in United States generally accepted accounting principles, (v) changes in laws, rules, regulations, orders, or other binding
directives issued by any governmental entity, and (vi) the taking of any action contemplated by this Agreement and the other agreements contemplated hereby. 
  
 “Multiemployer Plan” has the meaning set forth in ERISA §3(37). 
  
 “NMI Indemnitees” shall have the meaning ascribed to it in Section 8.4. 
  
 “NMI Share” means any share of the common stock, $0.001 par
value per share, of NMI. 
  
 “Non-Competition/Non-Solicitation Period” shall have the meaning ascribed to it in Section 5.3(a). 
  
 “Notice Period” shall have the meaning ascribed to it in Section 8.4(a). 
  
 “Ordinary Course of Business” means ordinary course of business consistent with past custom and practice
(including with respect to quantity and frequency). 
  
 “Person Day” means eight (8) hours during a calendar day. 
  
 “Person” means an individual, a partnership, a corporation, an association, a joint stock company, a trust, a joint venture, an unincorporated organization, or a governmental entity (or any
department, agency, or political subdivision thereof). 
  
 “Preliminary Purchase Price” shall have the meaning ascribed to it in Section 2.2(a). 
  
 “Principal Shareholders” means David James Richards and James Milton Campigli. 
  
 “Prohibited Transaction” has the meaning set forth in ERISA
§406 and Code §4975. 
  
 “Registration Rights
Agreement” means the Registration Rights Agreement, between NMI and the Shareholders, in the form attached hereto as Exhibit A. 
  
 “Revenue Measurement Period” means the period beginning on July 1, 2004 and ending on December 31, 2006. 
  
 “Revenue Target” shall have the meaning ascribed to it in
Section 2.4(a). 
  

 - 6 - 

 “SEC” means the Securities and Exchange Commission. 
  
 “Securities Act” means the Securities Act of 1933, as
amended. 
  
 “Shareholder Indemnitees” shall have
the meaning ascribed to it in Section 8.4. 
  
 “Shareholders Account” shall have the meaning ascribed to it in Section 2.2(a). 
  
 “Shareholders Cap” shall have the meaning ascribed to it in Section 8.2(b). 
  
 “Shareholders Representative” means David James Richards. 
  
 “Stock Consideration” shall have the meaning ascribed to it
in Section 2.2(a). 
  
 “Subsidiary” means, with
respect to any Person, any corporation, limited liability company, partnership, association, or other business entity of which (i) if a corporation, a majority of the total voting power of shares of stock entitled (without regard to the occurrence
of any contingency) to vote in the election of directors, managers, or trustees thereof is at the time owned or controlled, directly or indirectly, by that Person or one or more of the other Subsidiaries of that Person or a combination thereof or
(ii) if a limited liability company, partnership, association, or other business entity (other than a corporation), a majority of the partnership or other similar ownership interests thereof is at the time owned or controlled, directly or
indirectly, by that Person or one or more Subsidiaries of that Person or a combination thereof and for this purpose, a Person or Persons own a majority ownership interest in such a business entity (other than a corporation) if such Person or Persons
shall be allocated a majority of such business entity’s gains or losses or shall be or control any managing director or general partner of such business entity (other than a corporation). The term “Subsidiary” shall include all
Subsidiaries of such Subsidiary. 
  
 “Tax Return”
means any return, declaration, report, claim for refund, or information return or statement relating to Taxes, including any schedule or attachment thereto, and including any amendment thereof. 
  
 “Tax” or “Taxes” means any federal, state,
local, or foreign income, gross receipts, license, payroll, employment, excise, severance, stamp, occupation, premium, windfall profits, environmental (including taxes under Code §59A), customs duties, capital stock, franchise, profits,
withholding, social security (or similar), unemployment, disability, real property, personal property, sales, use, transfer, registration, value added, alternative or add-on minimum, estimated, or other tax of any kind whatsoever, including any
interest, penalty, or addition thereto, whether disputed or not and including any obligations to indemnify or otherwise assume or succeed to the Tax liability of any other Person. 
  
 “Third Party Claim” shall have the meaning ascribed to it in Section 8.4(a). 
  

 - 7 - 

 2. PURCHASE AND SALE OF COMPANY
SHARES 
  
 2.1. Basic Transaction. On
the terms and subject to the conditions contained herein, NMI agrees to purchase from each Shareholder and each Shareholder agrees to sell, assign, transfer and convey to NMI at Closing all of such Shareholder’s right, title and interest in and
to all of the issued and outstanding Company Shares owned of record and beneficially by such Shareholder, free and clear of all Liens, as set forth opposite such Shareholder’s name on Schedule A hereto, for the consideration specified
below in this Section 2. 
  
 2.2. Purchase Price.

  
 (a) Subject to adjustment pursuant to Section 2.4, as
consideration for the sale and assignment to NMI of the Company Shares by the Shareholders, NMI agrees to (i) deliver to the Shareholders at Closing an aggregate amount of $2,000,000 in cash (the “Cash Consideration”) minus
the Escrow Amount minus the Indebtedness of the Company (such difference, the “Closing Cash Consideration”), and (ii) issue to the Shareholders at Closing an aggregate of 263,678 NMI Shares (the “Stock
Consideration”) (the Cash Consideration and the Stock Consideration together, the “Preliminary Purchase Price”, and the Closing Cash Consideration and the Stock Consideration together, the “Closing Purchase
Price”). At Closing, NMI shall deliver (x) by wire transfer of immediately available federal funds, each Shareholder’s portion of the Closing Cash Consideration (as determined pursuant to Section 2.3(a)), to the accounts designated by
each of the Shareholders to NMI not later than three (3) business days prior to the Closing (the “Shareholders’ Accounts”), and (y) each Shareholder’s portion of the Stock Consideration (as determined pursuant to Section
2.3(a)) to the Shareholders. NMI shall promptly deliver (x) by wire transfer of immediately available federal funds, each Shareholder’s portion of the Cash Consideration (as determined pursuant to Section 2.3) to (i) the respective
Shareholders’ Accounts or (ii) in the event that a Shareholder requests that NMI deliver such payment(s) to another account, to such other account and (y) each Shareholder’s portion of all other consideration to be paid (other than cash)
pursuant to this Agreement (as determined pursuant to Section 2.3(a)) to each Shareholder. 
  
 (b) The NMI Shares issued pursuant hereto shall be issued without registration under the Securities Act, but shall be governed by the terms of the Registration Rights Agreement. 
  
 2.3. Allocation of Final Purchase Price. 
  
 (a) The Preliminary Purchase Price shall be allocated among the Shareholders
in accordance with the following: 
  
 (i) The Closing Cash
Consideration shall be allocated by NMI to the Shareholders by multiplying the Closing Cash Consideration by each Shareholder’s applicable Distribution Percentage. 
  
 (ii) The Stock Consideration shall be allocated by NMI to the Shareholders by multiplying the total number of NMI Shares
comprising the Stock 
  

 - 8 - 

 Consideration by each Shareholder’s applicable Distribution Percentage; provided, however, that in the event
that a Shareholder is entitled to receive a fractional amount of NMI Shares as determined herein, then such fractional amount shall be rounded up to the nearest whole integer amount. 
  
 (iii) All other consideration to be paid or delivered to the Shareholders pursuant to this Agreement, including any
remaining amount in the Escrow Account after its expiration (subject to the applicable provisions of the Escrow Agreement) and the Earn-Out, shall be allocated by NMI to the Shareholders by multiplying such consideration by each Shareholder’s
applicable Distribution Percentage. 
  
 (b) On the Closing Date,
NMI shall deposit $500,000 (the “Escrow Amount”) into escrow (the “Escrow Account”) with an escrow agent mutually satisfactory to NMI and the Company (the “Escrow Agent”) and pursuant to an Escrow
Agreement, substantially in form and substance as set forth on Exhibit B attached hereto (the “Escrow Agreement”). The Shareholders Representative shall serve as agent for and on behalf of the Shareholders (in their
capacities as such) as set forth in the Escrow Agreement. 
  
 2.4.
Earn Out. 
  
 (a) Solely on the terms and subject to the
conditions in this section and the other provisions of this Agreement, the Shareholders shall be eligible to receive additional contingent consideration from NMI, in the form of an aggregate of 65,920 NMI Shares (the “Earn-Out”)
after December 31, 2006. The Earn-Out shall be issued to the Shareholders if, and only if, the Earn-Out Revenue during the Revenue Measurement Period equals or exceeds $25,951,000 (the “Revenue Target”). To the extent that during
the Revenue Measurement Period, current employees of the Company, from time to time, divert their attention and time away from the Business to assist the employees of NMI in the conduct and operation of NMI’s businesses (excluding the conduct
and operation of the Business), then the amount equal to the following shall be known as the “Earn-Out Credit”: that amount derived from multiplying (i) the number of hours spent by all such Company employees involved in such
assistance at any given time during the Revenue Measurement Period, by (ii) $1000 and then dividing the resulting product by (iii) the Person Day. In the event that the Earn-Out Revenue does not equal or exceed the Revenue Target
during the Revenue Measurement Period, NMI shall have no obligation to make any payment to the Shareholders and no obligation to issue any of the NMI Shares comprising the Earn-Out to the Shareholders. 
  
 (b) In the event NMI is obligated to deliver the Earn-Out pursuant to Section
2.4(a), within fifteen (15) business days after the final determination of the Earn-Out Revenue pursuant to Section 2.4(d) below, NMI shall deliver the NMI Shares comprising each Shareholder’s portion of the Earn-Out (as determined pursuant to
Section 2.3(a)) to such Shareholder; provided, however, that in the event that such Shareholder is eligible to receive a fractional amount of NMI Shares as determined herein, then such fractional amount shall be rounded up to the nearest
whole integer amount. 
  

 - 9 - 

 (c) NMI shall calculate the Earn-Out Revenue within forty-five (45) days after the end of the Revenue
Measurement Period, and shall notify the Shareholders Representative of the results of such calculation no later than fifteen (15) days after the date such calculation has been made and such notice shall include the computation used to determine the
Earn-Out Revenue and a copy of all financial information used to make such computation. 
  
 (d) Unless the Shareholders Representative notifies NMI in writing within twenty (20) days after receipt by the Shareholders Representative of NMI’s statement of the Earn-Out Revenue, of any objections thereto
(specifying in reasonable detail the basis therefor), such statement shall be final and binding for all purposes. If the Shareholders Representative timely notifies NMI of any such objection, NMI and the Shareholders Representative shall attempt in
good faith to reach an agreement as to the matter in dispute. If the parties shall have failed to resolve any such dispute within ten (10) days after receipt of timely notice of such objection, then any such disputed matter shall be submitted to and
determined by a mutually agreed upon independent team of auditors at a nationally recognized independent accounting firm (the “Independent Accounting Firm”). The Independent Accounting Firm shall be given reasonable access to all of
the records of the Company that relate to the Business (including the applicable financial statements) to determine the Earn-Out Revenue, together with all the schedules and work papers of NMI and the Company that were used to determine the Earn-Out
Revenue, which determination shall be submitted to NMI and the Shareholders Representative within twenty (20) days. The fees and expenses of such Independent Accounting Firm incurred in resolving the disputed matter shall be equitably apportioned by
such Independent Accounting Firm based on the extent to which NMI, on the one hand, or the Shareholders Representative, on the other hand, is determined by such Independent Accounting Firm to be the prevailing party in the resolution of such
disputed matters. The determination of the Earn-Out Revenue by the Independent Accounting Firm shall, after resolution of any dispute pursuant to this Section 2.4(d), be final, binding and conclusive on all parties hereto. 
  
 2.5. Acknowledgement. Each of the Shareholders acknowledge that
following the Closing Date, the Company and NMI shall be entitled to exercise in good faith their business judgment with regard to the operation and management of the Business and the Java Adaptor Product Lines including, without limitation,
decisions to shut-down any or all of the Java Adaptor Product Lines businesses, to transfer personnel from the Java Adaptor Product Lines businesses to the Company’s or NMI’s other businesses or to sell, license or otherwise dispose of one
or more of the Java Adaptor Product Lines, and neither the Company nor NMI shall have any liability to the Shareholders on account of such exercise of such judgment. Each of the Shareholders acknowledge that NMI may shut down the Java Adaptor
Product Lines businesses and no representations have been made by NMI or any of its respective Affiliates or representatives to the Company or any of its Shareholders with regard to the operation, management or attempted sale of the Java Adaptor
Product Lines businesses following the Closing. Each of the Shareholders further acknowledge that the purchaser of any Divested Business shall not have any obligation to pay any Earn-Out amount pursuant to this Agreement following the consummation
of the acquisition of such Divested Business, provided, however, that in 
  

 - 10 - 

 the event a sale of any or all of the Divested Business (in a single transaction or series of transactions) is
consummated during the Revenue Measurement Period, and NMI receives cash proceeds resulting from such sale in excess of $25,951,000 in the aggregate, NMI shall pay the full amount of the Earn-Out to the Shareholders in accordance with Section
2.3(a). The Company unconditionally waives (i) all rights to notice and rights of first refusal set forth in any of the stock grant agreements that the Company may have entered into with any of the Shareholders and (ii) any other restrictions on
transfers of stock as set forth in any of the stock grant agreements to which the Company is a party. The Company unconditionally waives (x) all rights to notice and rights of first refusal set forth in any of the restricted stock purchase
agreements that the Company may have entered into with any of the Shareholders and (y) any other restrictions on transfers of stock as set forth in any of the restricted stock purchase agreements to which the Company is a party. 
  
 2.6. Closing. 
  
 (a) Time and Place. Subject to the conditions contained in this
Agreement, the consummation of the transactions contemplated herein (the “Closing”) will occur at the offices of Kirkland & Ellis LLP, 333 Bush Street, Suite 2600, San Francisco, California 94104, at 10 a.m. on a business day
within three (3) business days following the date as of which the conditions to each party’s obligations (as set forth in Sections 6 and 7 hereof) have been satisfied or at such other time and on such other date as NMI and the Shareholders
Representative mutually agree (the “Closing Date”). 
  
 (b) Deliveries at Closing. At the Closing, (i) the Shareholders will deliver to NMI the various certificates, instruments, and documents referred to in Section 6 below, (ii) NMI will deliver to the Shareholders the various
certificates, instruments, and documents referred to in Section 7 below, (iii) each Shareholder will deliver to NMI stock certificates representing all of his or her Company Shares, endorsed in blank or accompanied by duly executed assignment
documents, and (iv) NMI will deliver to each Shareholder, Shareholder Account and the Escrow Agent, as applicable, the Closing Purchase Price and the Escrow Amount specified in Section 2.2 above. 
  
 2.7. Public Announcements. Before making any public announcements with
respect to this Agreement or the transactions contemplated hereby, each of NMI, the Shareholders, and the Company shall consult with the other parties and use good faith efforts to agree upon the text of a joint announcement to be made by NMI and
the Company or use good faith efforts to obtain each other party’s approval of the text of any public announcement to be made on behalf of any one party; provided, that NMI shall have final approval with respect to any public announcements.
Each of NMI, the Company and the Shareholders shall maintain as confidential the terms and conditions of this Agreement, except as otherwise agreed in writing by each of NMI, the Company and the Shareholders or required by law or the Nasdaq National
Market. 
  

 - 11 - 

 3. REPRESENTATIONS AND WARRANTIES OF THE
SHAREHOLDERS AND THE COMPANY 
  
 The Shareholders, severally, and the Company hereby represent and warrant to NMI that the statements contained in this Section 3 are correct and complete as of the date of this Agreement and shall be correct and
complete as of the Closing Date (as though made then and as though the Closing Date were substituted for the date of this Agreement throughout this Section 3), except as set forth in the disclosure schedule accompanying this Agreement (the
“Disclosure Schedule”). The Disclosure Schedule will be arranged in sections corresponding to the lettered and numbered paragraphs contained in this Agreement. 
  
 3.1. Organization, Qualification, and Corporate Power. The Company is a corporation duly organized, validly existing,
and in good standing under the laws of the jurisdiction of its incorporation. The Company and each of its Subsidiaries are duly authorized to conduct business and are in good standing under the laws of each jurisdiction where such qualifications are
required, except where the failure to be so qualified would not have a Material Adverse Effect. The Company and each of its Subsidiaries have full corporate power and authority to carry on the businesses in which they are engaged and which they
propose to be engaged, and to own and use the properties owned and used by them. The Company has provided NMI with true, complete and correct copies of the Company’s articles or certificate of incorporation and bylaws, as amended to the date of
this Agreement. 
  
 3.2. Capitalization. 
  
 (a) The entire authorized capital stock of the Company consists of
30,000,000 shares of common stock, 13,508,560 of which are issued and outstanding. All of the issued and outstanding Company Shares have been duly authorized and are validly issued, fully paid, and nonassessable. There are no outstanding or
authorized options, warrants, purchase rights, preemptive rights, subscription rights, conversion rights, exchange rights, or other contracts or commitments that could require the Company to issue, sell, or otherwise cause to become outstanding any
of its capital stock. There are no outstanding or authorized stock appreciation, phantom stock, profit participation, or similar rights with respect to the Company. The Shareholders are not a party to any voting trust, proxy, or other agreement or
understanding with respect to the voting of any capital stock of the Company. 
  
 (b) All shares of authorized capital stock of the Company issued and outstanding are held of record and beneficially by the Shareholders. Each Shareholder is the record and beneficial holder of the issued and
outstanding capital stock of the Company listed opposite such Shareholder’s name on Schedule A, and holds valid title to such stock, free and clear of all Liens. Upon the consummation of the transactions contemplated herein, NMI shall be the
beneficial owner of all of the capital stock of the Company, free and clear of all Liens. 
  
 3.3. No Subsidiaries or Other Ownership Interests. Except as set forth in Section 3.3 of the Disclosure Schedule, the Company neither owns or controls, directly or indirectly, shares of capital stock, debt
instruments or other securities of any corporation or holds, directly or indirectly, any interest in any trust, partnership, limited partnership, joint venture, limited liability company, proprietorship or other business entity. 
  

 - 12 - 

 3.4. Authorization. Each Shareholder has the full right, power, legal capacity and authority to
enter into, execute and deliver this Agreement and the other documents contemplated hereby and to perform the obligations to be performed by such Shareholder hereunder and thereunder, respectively. The Company has full power and authority (including
full corporate power and authority) to execute and deliver this Agreement and the other documents contemplated hereby and to perform its obligations hereunder and thereunder, respectively. This Agreement and the other documents contemplated hereby
constitute the valid and legally binding obligations of the Shareholders and the Company enforceable in accordance with their terms, subject to the effect of any applicable bankruptcy, reorganization, insolvency, moratorium or similar laws affecting
creditors’ rights generally and subject, as to enforceability, to the effect of general principles of equity. 
  
 3.5. Noncontravention. 
  
 (a) Neither the execution and delivery of this Agreement, nor the consummation of the transactions contemplated hereby, will (i) materially violate any
constitution, statute, regulation, rule, injunction, judgment, order, decree, ruling, charge, or other restriction of any Governmental Entity to which any Shareholder is subject, (ii) materially conflict with, result in a breach of, constitute a
default under, result in the acceleration of, create in any party the right to accelerate, terminate, modify, or cancel, or require any notice under any material agreement, contract, lease, license, instrument, or other arrangement to which any
Shareholder is a party or by which he or she is bound or to which any of his or her assets are subject, or (iii) result in the imposition or creation of a Lien upon or with respect to the Company Shares. 
  
 (b) Neither the execution and the delivery of this Agreement, nor the
consummation of the transactions contemplated hereby, will (i) materially violate any constitution, statute, regulation, rule, injunction, judgment, order, decree, ruling, charge, or other restriction of any Governmental Entity to which the Company
or any of its Subsidiaries is subject or any provision of the charter or bylaws of the Company or any of its Subsidiaries or (ii) materially conflict with, result in a material breach of, constitute a default under, result in the acceleration of,
create in any party the right to accelerate, terminate, modify, or cancel, or require any notice under any material agreement, contract, lease, license, instrument, or other arrangement to which the Company or any of its Subsidiaries is a party or
by which it is bound or to which any of its assets is subject (or result in the imposition of any Lien upon any of its assets). Neither the Company nor any of its Subsidiaries needs to give any notice to, make any filing with, or obtain any
authorization, consent, or approval of any Governmental Entity in order for the parties to consummate the transactions contemplated by this Agreement. 
  
 3.6. Consents and Approvals. Except as set forth in Section 3.6 of the Disclosure Schedule, the execution and delivery by the Shareholders and the
Company of this Agreement and the documents contemplated hereby to be executed by the Shareholders 
  

 - 13 - 

 and the Company, compliance by the Shareholders and the Company with the terms hereof and thereof and consummation by the
Shareholders and the Company of the transactions contemplated hereby and thereby do not require the Company, any of its Subsidiaries or any Shareholder to obtain any consent, approval or action of, make any filings with or give any notice to any
corporation, person, firm or other entity, or any public, governmental or judicial authority, or any Governmental Entity, the failure to obtain which could reasonably be expected to materially and adversely affect the ability of the Company to
consummate the transactions contemplated hereby. 
  
 3.7.
Financial Statements. Section 3.7 of the Disclosure Schedule contains the unaudited financial statements of the Company for the fiscal year ended December 31, 2003 (the “2003 Financial Statements”) and the seven months ended
July 31, 2004 (the “Latest Financial Statements” and together with the 2003 Financial Statements, the “Financial Statements”). Subject to the adjustments set forth in Section 3.7 of the Disclosure Schedule, the
Financial Statements (including in all cases the notes thereto, if any) are accurate and complete, are consistent with the books and records of the Company and its Subsidiaries (which, in turn, are accurate and complete) and present fairly the
financial condition, results of operations and cash flows of the Company and its Subsidiaries substantially in accordance with GAAP consistently applied throughout the periods covered thereby, provided, however, that the Latest Financial Statements
are subject to normal year-end adjustments, which were not and are not expected, individually or in the aggregate, to have a Material Adverse Effect. All accounts receivable of the Company and its Subsidiaries (a) are bona fide receivables incurred
in the Ordinary Course of Business, (b) are properly reflected on the Company’s and its Subsidiaries’ books and records substantially in accordance with GAAP and (c) are not subject to any counterclaim, or a claim for a chargeback,
deduction, credit, set-off or other offset, other than as reflected by the reserve for bad debts and the reserve for returns or allowances. No Person has any Lien on any accounts receivable or any part thereof, and no agreement for deduction, free
goods or services, discount or other deferred price or quantity adjustment has been made by the Company or any of its Subsidiaries with respect to any accounts receivable. 
  
 3.8. Undisclosed Liabilities. Neither the Company nor any of its Subsidiaries has any material liability (whether
known or unknown, absolute or contingent, whether accrued or unaccrued, whether liquidated or unliquidated, and whether due or to become due), including any liability for Taxes, except for liabilities set forth on the face of the unaudited balance
sheet of the Company as of July 31, 2004 (the “Latest Balance Sheet”) (none of which results from, arises out of, relates to, is in the nature of, or was caused by any breach of contract, breach of warranty, tort, infringement,
violation of law, environmental matter, claim or lawsuit). 
  
 3.9. Absence of Certain Changes. Except as provided in Section 3.9 of the Disclosure Schedule, disclosed in the Latest Balance Sheet or resulting from any action required to be performed by the Company under this Agreement, since
December 31, 2003, there has not been any Material Adverse Change. Without limiting the generality of the foregoing, since that date: 
  
 (a) neither the Company nor any of its Subsidiaries has sold, leased, transferred, or assigned any of its assets, tangible or intangible; 
  

 - 14 - 

 (b) neither the Company nor any of its Subsidiaries has entered into any agreement, contract, lease, or
license (or series of related agreements, contracts, leases, and licenses) involving more than $25,000 individually or $50,000 in the aggregate; 
  
 (c) no party (including the Company and any of its Subsidiaries) has accelerated, terminated, modified, or cancelled any agreement, contract, lease, or
license (or series of related agreements, contracts, leases, and licenses) involving more than $50,000 to which the Company or any of its Subsidiaries is a party or by which any of them is bound; 
  
 (d) neither the Company nor any of its Subsidiaries has imposed any Liens
upon any of its assets, tangible or intangible; 
  
 (e) neither
the Company nor any of its Subsidiaries has made any capital expenditure (or series of related capital expenditures) involving more than $25,000 individually or $50,000 in the aggregate; 
  
 (f) neither the Company nor any of its Subsidiaries has made any capital investment in, any loan to, or any acquisition of
the securities or assets of, any other Person (or series of related capital investments, loans, and acquisitions) involving more than $25,000 individually or $50,000 in the aggregate; 
  
 (g) neither the Company nor any of its Subsidiaries has issued any note, bond, or other debt security or created, incurred,
assumed, or guaranteed any Indebtedness for borrowed money or capitalized lease obligation either involving more than $25,000 individually or $50,000 in the aggregate; 
  
 (h) neither the Company nor any of its Subsidiaries has delayed or postponed the payment of accounts payable and other
liabilities; 
  
 (i) neither the Company nor any of its
Subsidiaries has cancelled, compromised, waived, or released any right or claim (or series of related rights and claims) involving more than $25,000 individually or $50,000 in the aggregate; 
  
 (j) neither the Company nor any of its Subsidiaries has transferred,
assigned, or granted any license or sublicense of any rights under or with respect to any Intellectual Property; 
  
 (k) there has been no change made or authorized in the charter or bylaws of any of the Company and its Subsidiaries; 
  
 (l) neither the Company nor any of its Subsidiaries has issued, sold, or
otherwise disposed of any of its capital stock, or granted any options, warrants, or other rights to purchase or obtain (including upon conversion, exchange, or exercise) any of its capital stock; 
  

 - 15 - 

 (m) neither the Company nor any of its Subsidiaries has declared, set aside, or paid any dividend or made
any distribution with respect to its capital stock (whether in cash or in kind) or redeemed, purchased, or otherwise acquired any of its capital stock; 
  
 (n) neither the Company nor any of its Subsidiaries has experienced any damage, destruction, or loss (whether or not covered by insurance) to its
property; 
  
 (o) neither the Company nor any of its Subsidiaries
has made any loan to, or entered into any other transaction with, any of its directors, officers, and employees; 
  
 (p) neither the Company nor any of its Subsidiaries has entered into any employment contract or collective bargaining agreement, written or oral, or
modified the terms of any existing such contract or agreement; 
  
 (q) neither the Company nor any of its Subsidiaries has granted any increase in the base compensation of any of its directors, officers, and employees; 
  

(r) neither the Company nor any of its Subsidiaries has adopted, amended, modified, or terminated any bonus, profit sharing, incentive, severance, or
other plan, contract, or commitment for the benefit of any of its directors, officers, and employees (or taken any such action with respect to any other Employee Benefit Plan); 
  
 (s) neither the Company nor any of its Subsidiaries has made any other change in employment terms for any of its directors,
officers, and employees; 
  
 (t) neither the Company nor any of
its Subsidiaries has made or pledged to make any charitable or other capital contribution; 
  
 (u) there has not been any other occurrence, event, incident, action, failure to act, or transaction outside the Ordinary Course of Business involving the Company or any of its Subsidiaries; 
  
 (v) neither the Company nor any of its Subsidiaries has discharged a material
liability or Lien; 
  
 (w) neither the Company nor any of its
Subsidiaries has made any loans or advances of money; 
  
 (x)
neither the Company nor any of its Subsidiaries has disclosed any Confidential Information; 
  
 (y) neither the Company nor any of its Subsidiaries has committed to any of the foregoing; and 
  
 (z) no claims have been made alleging that the Company’s products are defective or fail to perform in accordance with the Company’s published
user specification. 
  

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 3.10. Litigation. Section 3.10 of the Disclosure Schedule sets forth each instance in which the
Company or any of its Subsidiaries (a) is subject to any outstanding injunction, judgment, settlement, order, decree, ruling, or charge, (b) is a party, or to the Knowledge of any of Shareholders and the directors and officers (and employees with
responsibility for litigation matters) of the Company, is threatened to be made a party to any action, suit, proceeding, hearing, or investigation of, in, or before any court or quasi-judicial or administrative agency of any federal, state, local,
or foreign jurisdiction or before any arbitrator, or (c) is subject to any claims alleging that the Company’s products are defective or fail to perform in accordance with the Company’s published user specification, or alleging a similar
breach of warranty. None of the actions, suits, proceedings, hearings, investigations, or settlements set forth in Section 3.10 of the Disclosure Schedule could result in any Material Adverse Effect. None of the Shareholders and the directors and
officers (and employees with responsibility for litigation matters) of the Company has any reason to believe that any such action, suit, proceeding, hearing, or investigation may be brought or threatened against the Company or that there is any
basis for the foregoing. Except as set forth in Section 3.10 of the Disclosure Schedule, no facts or circumstances exist that could reasonably be expected to result in any material litigation. 
  
 3.11. Compliance with Law. Except as set forth in Section 3.11 of the
Disclosure Schedule, the Company and each of its Subsidiaries has complied in all material respects, and is in material compliance with, and neither the Company nor any of its Subsidiaries has violated any applicable law, rule or regulation of any
federal, state, local or foreign government or agency thereof, including, without limitation, the U.S. Citizenship and Immigration Service and the Social Security Administration. No notice, claim, charge, complaint, action, suit, proceeding,
investigation or hearing has been received by the Company or any of its Subsidiaries or, to the Company’s Knowledge, filed, commenced or threatened against the Company or any of its Subsidiaries alleging a violation of or liability or potential
responsibility under any such law, rule or regulation which has not heretofore been duly cured and for which there is no remaining liability. The Company and each of its Subsidiaries has complied and is in compliance with all orders, decrees or
judgments promulgated or issued by any state, federal, local or foreign regulatory agency. Neither the Company nor any Subsidiary has violated, and the employment of any of the Company’s temporary employees or independent contractors does not
violate, any rules or regulations of the U.S. Citizenship and Immigration Service or the Social Security Administration in any manner, whether by failure to keep the Company’s “I-9” compliance files up to date or otherwise. To the
Knowledge of the Company, all third parties providing temporary workers or independent contractors to the Company have been and are in compliance with all applicable laws, rules or regulations of any federal, state, local or foreign government or
agency thereof, including, without limitation, the U.S. Citizenship and Immigration Service and the Social Security Administration. 
  
 3.12. Taxes. 
  
 (a) Each of the Company and its Subsidiaries have filed all Tax Returns that they were required to file under applicable laws and regulations. All such
Tax 
  

 - 17 - 

 Returns were correct and complete in all respects and were prepared in substantial compliance with all applicable laws
and regulations. Except as described in Section 3.12(a) of the Disclosure Schedule, all Taxes due and owing by the Company or any of its Subsidiaries (whether or not shown on any Tax Return) have been paid, except to the extent that an accrual or
reserve for such taxes has been reflected in accordance with GAAP in the Financial Statements. Neither the Company nor any of its Subsidiaries currently is the beneficiary of any extension of time within which to file any Tax Return. No claim has
ever been made by an authority in a jurisdiction where the Company or any of its Subsidiaries does not file Tax Returns that the Company or any of its Subsidiaries is or may be subject to taxation by that jurisdiction. There are no Liens for Taxes
(other than Taxes not yet due and payable) upon any of the assets of the Company or any of its Subsidiaries. 
  
 (b) Each of the Company and its Subsidiaries have withheld and paid all Taxes required to have been withheld and paid in connection with any amounts paid
or owing to any employee, independent contractor, creditor, stockholder, or other third party. 
  
 (c) No director or officer (or employee responsible for Tax matters) of the Company or any of its Subsidiaries expects any authority to assess any additional Taxes on the Company or any of its Subsidiaries for any
period for which Tax Returns have been filed. To the Knowledge of the Company, no foreign, federal, state, or local tax audits or administrative or judicial Tax proceedings are pending or being conducted with respect to the Company, any of its
Subsidiaries, or any of the Shareholders, and no notice related to the foregoing has been received by the Company, any of its Subsidiaries, or any of the Shareholders. Neither the Company, any of its Subsidiaries, nor any director or officer has
received from any foreign, federal, state, or local taxing authority (including jurisdictions where the Company or its Subsidiaries have not filed Tax Returns) any (i) notice indicating an intent to open an audit or other review, (ii) request for
information related to Tax matters, or (iii) notice of deficiency or proposed adjustment for any amount of Tax proposed, asserted, or assessed by any taxing authority against the Company or any of its Subsidiaries, in each case relating to the
Company or any of its Subsidiaries. Section 3.12(c) of the Disclosure Schedule lists all federal, state, local, and foreign income Tax Returns filed with respect to any of the Company or its Subsidiaries for taxable periods ended on or after
December 22, 2002, indicates those Tax Returns that have been audited, and indicates those Tax Returns that currently are the subject of audit. Shareholders have delivered to NMI correct and complete copies of all federal income Tax Returns,
examination reports, and statements of deficiencies assessed against or agreed to by the Company or any of its Subsidiaries filed or received since December 22, 2002. 
  
 (d) Neither the Company nor any of its Subsidiaries has waived any statute of limitations in respect of Taxes or agreed to
any extension of time with respect to a Tax assessment or deficiency. 
  
 (e) Neither the Company nor any of its Subsidiaries filed a consent under Code §341(f) concerning collapsible corporations prior to the repeal of Code §341. 
  

 - 18 - 

 Neither the Company nor any of its Subsidiaries is a party to any agreement, contract, arrangement or plan that has
resulted or could result, separately or in the aggregate, in the payment of (i) any “excess parachute payment” within the meaning of Code §280G (or any corresponding provision of state, local or foreign Tax law) and (ii) any amount
that will not be fully deductible as a result of Code §162(m) (or any corresponding provision of state, local or foreign Tax law). Neither the Company nor any of its Subsidiaries has been a United States real property holding corporation within
the meaning of Code §897(c)(2) during the applicable period specified in Code §897(c)(1)(A)(ii). Each of the Company and its Subsidiaries have disclosed on their federal income Tax Returns all positions taken therein that could give rise
to a substantial understatement of federal income Tax within the meaning of Code §6662. Neither the Company nor any of its Subsidiaries is a party to or bound by any Tax allocation or sharing agreement. Neither the Company nor any of its
Subsidiaries (A) has been a member of an Affiliated Group filing a consolidated federal income Tax Return (other than a group the common parent of which was the Company) or (B) has any liability for the Taxes of any Person (other than the Company or
any of its Subsidiaries) under Reg. §1.1502-6 (or any similar provision of state, local, or foreign law), as a transferee or successor, by contract, or otherwise. 
  
 (f) The unpaid Taxes of the Company and its Subsidiaries did not, as of July 31, 2004, exceed the reserve for Tax Liability
(rather than any reserve for deferred Taxes established to reflect timing differences between book and Tax income) set forth on the face of the Latest Balance Sheet (rather than in any notes thereto). Since the date of the Latest Balance Sheet,
neither the Company nor any of its Subsidiaries has incurred any liability for Taxes arising from extraordinary gains or losses, as that term is used in GAAP. 
  

(g) Neither the Company nor any of its Subsidiaries will be required to include any item of income in, or exclude any item of deduction from, taxable
income for any taxable period (or portion thereof) ending after the Closing Date as a result of any: 
  
 (i) change in method of accounting for a taxable period ending on or prior to the Closing Date; 
  
 (ii) “closing agreement” as described in Code §7121 (or any
corresponding or similar provision of state, local or foreign income Tax law) executed on or prior to the Closing Date; 
  
 (iii) intercompany transaction or excess loss account described in Treasury Regulations under Code §1502 (or any corresponding or similar provision
of state, local or foreign income Tax law); 
  
 (iv) installment
sale or open transaction disposition made on or prior to the Closing Date; or 
  
 (v) prepaid amount received on or prior to the Closing Date. 
  

 - 19 - 

 (h) Neither the Company nor any of its Subsidiaries has distributed stock of another Person, or has had
its stock distributed by another Person, in a transaction that was purported or intended to be governed in whole or in part by Code §355 or Code §361. 
  

3.13. Contracts. 
  
 (a) Set forth in Section 3.13 of the Disclosure Schedule is a complete and accurate list of all of the following contracts (written or oral), plans,
arrangements, undertakings, commitments or agreements (the “Company Contracts”) to which the Company or any of its Subsidiaries is a party or by which it is bound as of the date of this Agreement: 
  
 (i) any employment or consulting agreement, contract or commitment with any
employee, officer or director or any contract or agreement with other consultants; 
  
 (ii) any agreement, contract or commitment with any party containing any covenant limiting the ability of the Company or any employee of the Company to engage in business or to compete in any location or with any
person; 
  
 (iii) any partnership or joint venture agreement with
any party or any arrangements with any party with respect to the sharing of or in the profits or revenues of the Company, including without limitation any licensing or royalty agreements; 
  
 (iv) any agreement or instrument relating to the borrowing of money, or the direct or indirect guarantee of any obligation
for, or an agreement to service the repayment of, borrowed money or any other contingent obligations in respect of Indebtedness of any other party; 
  
 (v) any agreement, contract or commitment relating to the future disposition or acquisition of any investment in any party or of any interest in any
business enterprise involving the business of the Company, any of its Subsidiaries or their respective Assets; 
  
 (vi) any contract or commitment for capital expenditures or the acquisition or construction of fixed assets in excess of $5,000; 
  
 (vii) any contract or commitment for the sale or furnishing of materials,
supplies, merchandise, equipment or services in excess of $1,000; 
  
 (viii) any written agreement, instrument or other arrangement, or any material unwritten agreement, contract, commitment or other arrangement, between or among the Company, any of its Subsidiaries and any of the Affiliates of the Company,
any of its Subsidiaries or any Shareholder; 
  

 - 20 - 

 (ix) any contract which grants to any person a preferential right to purchase any of the Assets;

  
 (x) any settlement, conciliation or similar agreement;

  
 (xi) (A) any agreement relating to the licensing of
Intellectual Property by the Company to a third party, including software licenses; and (B) any agreement relating to the licensing of Intellectual Property from a third party, including software or software components that are embedded, integrated,
bundled with or otherwise distributed with the Company’s products except for agreements relating to the licensing to the Company of standard, generally commercially available, “off the shelf” third party products that are not and will
not to any extent be embedded, integrated, bundled with or otherwise distributed with any products, services or Intellectual Property of the Company and are not and will not to any extent be sublicensed, resold or otherwise distributed by the
Company separately from any products, services and Intellectual Property of the Company; and 
  
 (xii) any other material agreement or instrument. 
  
 (b) There is no material course of dealing, waiver, side agreement, arrangement or understanding applicable to any such contract of the Company not disclosed therein or in the Disclosure Schedule. 
  
 (c) The Company has delivered or made available to NMI a correct and complete
copy of each written Company Contract (as amended to date) listed in Section 3.13 of the Disclosure Schedule and a written summary setting forth the terms and conditions of each oral Company Contract referred to in Section 3.13 of the Disclosure
Schedule. With respect to each such Company Contract: (i) the agreement is legal, valid, binding, enforceable, and in full force and effect with regard to the Company or the Subsidiary, as the case may be, and, to the Knowledge of the Company, on
the other parties thereto; (ii) the agreement will continue to be legal, valid, binding, enforceable with regard to the Company or the Subsidiary, as the case may be, and, to the Knowledge of the Company, on the other parties thereto, and in full
force and effect on identical terms following the consummation of the transactions contemplated hereby; (iii) no party is in material breach or default, and no event has occurred that with notice or lapse of time would constitute a material breach
or default, or permit termination, modification, or acceleration, under the agreement; and (iv) no party has repudiated any provision of the agreement. 
  
 3.14. Assets of the Company. Except as set forth in Section 3.14 of the Disclosure Schedule, the Company has good and marketable title or a valid
right to use all of the real properties, personal assets, Intellectual Property, and other properties owned, licensed or leased or otherwise used by the Company or any of its Subsidiaries (“Assets”) that are necessary for the
conduct of the business of the Company or any of its Subsidiaries as currently conducted and as currently proposed to be conducted, free and clear of all Liens, except such imperfections of title and encumbrances, if any, which are not material in
character, amount or extent, and which do not materially detract from the 
  

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 value, or materially interfere with the present use of the property subject thereto or affected thereby. There are no
actual, pending or, to the Company’s Knowledge, threatened claims against the Assets that could give rise to a Lien, or acts or incidents which could give rise to any such claims, relating to or arising out of the Assets or the operation of the
business of the Company or any of its Subsidiaries. The Company and its Subsidiaries have the right to transfer all of their right, title and interest in the licenses included in the Assets without any consent, and the transfer contemplated hereby
will not affect their validity or enforceability. The Company and its Subsidiaries own or lease all buildings, machinery, equipment, and other tangible Assets necessary for the conduct of their business as presently conducted and as presently
proposed to be conducted. Each such tangible Asset is free from defects (patent and latent), has been maintained in accordance with normal industry practice, is in good operating condition and repair (subject to normal wear and tear), and is
suitable for the purposes for which it presently is used and presently is proposed to be used. 
  
 3.15. Affiliate Transactions. Except as disclosed in Section 3.15 of the Disclosure Schedule, no Insider or employee is a party to any oral or written agreement, contract, commitment or transaction with the
Company or any of its Subsidiaries or has any interest in any property used by the Company or any of its Subsidiaries. No Insider owns or has otherwise retained any rights to use any assets (including, without limitation, any Company Intellectual
Property), rights or contractual benefits which are used by or could be used by the Company or any of its Subsidiaries in the Business. Without limiting the foregoing, except as disclosed in Section 3.15 of the Disclosure Schedule, no Insider is an
officer, director or employee of any customer or supplier of the Company or any of its Subsidiaries. 
  
 3.16. Customers and Suppliers. 
  
 (a) Section 3.16 of the Disclosure Schedule lists all of the customers of the Company (on a consolidated basis) for the most recent fiscal year and for
the seven months ended on July 31, 2004 and sets forth opposite the name of each such customer the percentage of consolidated net sales attributable to such customer. 
  
 (b) Section 3.16 of the Disclosure Schedule lists the ten (10) largest suppliers of the Company (on a consolidated basis)
for the most recent fiscal year and for the seven months ended on July 31, 2004 and sets forth opposite the name of each such supplier the percentage of consolidated net sales attributable to such supplier. Section 3.16 of the Disclosure Schedule
also lists any additional current suppliers that the Company anticipates shall be among the ten (10) largest suppliers for the current fiscal year. 
  
 (c) Neither the Company nor any other Person on behalf of the Company is a party to, or is obligated under, any contract or other arrangement (oral or
written) relating to the payment of any brokerage fees, finder’s fees, or commissions or other similar compensation in connection with or relating to business between the Company and any of its customers or suppliers. 
  

 - 22 - 

 (d) As of the date of this Agreement, no customer or supplier of the Company existing as of the date
hereof (i) has indicated that it intends to or is considering terminating its business relationship with the Company or (ii) has made any claim alleging that the Company’s products are defective or fail to perform in accordance with the
Company’s published user specification, or alleging a similar breach of warranty. 
  
 (e) As of the date of this Agreement, no customer or supplier of the Company has requested, and the Company has not granted, any amendment or change to the terms of payment by such customer or for such supplier, in
respect of any obligation or Indebtedness to the Company. 
  
 (f)
As of the date of this Agreement, to the Company’s Knowledge no customer or supplier of the Company is insolvent or will be unable to pay its debts or obligations as they become due and payable. 
  
 3.17. Real Property. Section 3.17 of the Disclosure Schedule sets
forth the address of each parcel of Leased Real Property, and a true and complete list of all Leases for each such Leased Real Property (including the date and name of the parties to such Lease document). The Company has delivered or made available
to NMI a true and complete copy of each such Lease document, and in the case of any oral Lease, a written summary of the material terms of such Lease. Except as set forth in Section 3.17 of the Disclosure Schedule, with respect to each of the
Leases: 
  
 (a) such Lease is legal, valid, binding, enforceable
on the Company, and, to the Knowledge of the Company, on the other party and in full force and effect; 
  
 (b) the transactions contemplated by this Agreement do not require the consent of any other party to such Lease, will not result in a breach of or default
under such Lease, and will not otherwise cause such Lease to cease to be legal, valid, binding, enforceable on the Company, and, to the Knowledge of the Company, on the other party and in full force and effect on identical terms following the
Closing; 
  
 (c) the Company’s possession and quiet enjoyment
of the Leased Real Property under such Lease has not been disturbed and there are no disputes with respect to such Lease; 
  
 (d) neither the Company nor, to the Company’s Knowledge, any other party to the Lease is in breach of or default under such Lease, and no event has
occurred or circumstance exists that, with the delivery of notice, the passage of time or both, would constitute such a breach or default, or permit the termination, modification or acceleration of rent under such Lease; 
  
 (e) no security deposit or portion thereof deposited with respect to such
Lease has been applied in respect of a breach of or default under such Lease that has not been redeposited in full; 
  
 (f) the Company does not owe, or will not owe in the future, any brokerage commissions or finder’s fees with respect to such Lease; 
  

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 (g) to the Company’s Knowledge, the other party to such Lease is not an Affiliate of, and otherwise
does not have any economic interest in, the Company; 
  
 (h) the
Company has not subleased, licensed or otherwise granted any Person the right to use or occupy the Leased Real Property or any portion thereof; 
  
 (i) the Company has not collaterally assigned or granted any other Lien in such Lease or any interest therein; and 
  
 (j) there are no Liens on the estate or interest created by such Lease.

  
 3.18. Employee Benefit Plans. 
  
 (a) Section 3.18 of the Disclosure Schedule lists each Employee Benefit Plan
that the Company or any of its Subsidiaries maintains, to which the Company or any of its Subsidiaries contributes or has any obligation to contribute, or with respect to which the Company or any of its Subsidiaries has any liability. 
  
 (i) Each such Employee Benefit Plan (and each related trust, insurance
contract, or fund) has been maintained, funded and administered in all material respects in accordance with the terms of such Employee Benefit Plan and the terms of any applicable collective bargaining agreement and complies in form and in operation
in all material respects with the applicable requirements of ERISA, the Code, and other applicable laws. 
  
 (ii) All required reports and descriptions (including Form 5500 annual reports, summary annual reports, and summary plan descriptions) have been timely
filed and/or distributed in accordance with the applicable requirements of ERISA and the Code with respect to each such Employee Benefit Plan. The requirements of COBRA have been met with respect to each such Employee Benefit Plan and each Employee
Benefit Plan maintained by an ERISA Affiliate that is an Employee Welfare Benefit Plan subject to COBRA. 
  
 (iii) All contributions (including all employer contributions and employee salary reduction contributions) that are due have been made within the time
periods prescribed by ERISA and the Code to each such Employee Benefit Plan that is an Employee Pension Benefit Plan and all contributions for any period ending on or before the Closing Date that are not yet due have been made to each such Employee
Pension Benefit Plan or accrued in accordance with the past custom and practice of the Company and its Subsidiaries. All premiums or other payments for all periods ending on or before the Closing Date have been paid with respect to each such
Employee Benefit Plan that is an Employee Welfare Benefit Plan. 
  
 (iv) Each such Employee Benefit Plan that is intended to meet the requirements of a “qualified plan” under Code §401(a) has received a determination from the IRS that such Employee Benefit Plan is so qualified, and nothing
has occurred since the date of such determination that could adversely affect the qualified status of any such Employee Benefit Plan. All such Employee Benefit Plans have been or will be 
  

 - 24 - 

 timely amended for the requirements of the Tax legislation commonly known as “GUST” and “EGTRRA” and
have been or will be submitted to the IRS for a favorable determination letter on the GUST requirements within the remedial amendment period prescribed by GUST. 
  

(v) There have been no Prohibited Transactions with respect to any such Employee Benefit Plan or any Employee Benefit Plan maintained by an ERISA
Affiliate. No fiduciary has any liability for breach of fiduciary duty or any other failure to act or comply in connection with the administration or investment of the assets of any such Employee Benefit Plan. No action, suit, proceeding, hearing,
or investigation with respect to the administration or the investment of the assets of any such Employee Benefit Plan (other than routine claims for benefits) is pending or, to the Knowledge of any of the Shareholders and the directors and officers
(and employees with responsibility for employee benefits matters) of the Company and its Subsidiaries, threatened. None of the Shareholders and the directors and officers (and employees with responsibility for employee benefits matters) of the
Company and its Subsidiaries has any Knowledge of any basis for any such action, suit, proceeding, hearing, or investigation. 
  
 (vi) The Shareholders have delivered to NMI correct and complete copies of the plan documents and summary plan descriptions, the most recent
determination letter received from the IRS, the most recent annual report (Form 5500, with all applicable attachments), and all related trust agreements, insurance contracts, and other funding arrangements that implement each such Employee Benefit
Plan. 
  
 (b) Neither the Company, nor any of its Subsidiaries,
nor any ERISA Affiliate contributes to, has any obligation to contribute to, or has any liability under or with respect to any Employee Pension Benefit Plan that is a “defined benefit plan” (as defined in ERISA §3(35)). No asset of
the Company or any of its Subsidiaries is subject to any Lien under ERISA or the Code. 
  
 (c) Neither Company, nor any of its Subsidiaries, nor any ERISA Affiliate contributes to, has any obligation to contribute to, or has any liability (including withdrawal liability as defined in ERISA §4201) under
or with respect to any Multiemployer Plan. 
  
 (d) Neither the
Company nor any of its Subsidiaries maintains, contributes to or has an obligation to contribute to, or has any liability with respect to, any Employee Welfare Benefit Plan providing health or life insurance or other welfare-type benefits for
current or future retired or terminated directors, officers or employees (or any spouse or other dependent thereof) of the Company or any of its Subsidiaries or of any other Person other than in accordance with COBRA. 
  
 3.19. Intellectual Property. 
  
 (a) The term “Intellectual Property” shall mean all of the
following in any jurisdiction throughout the world: (i) patents, patent applications and patent disclosures; (ii) trademarks, service marks, trade dress, trade names, corporate names, logos and 
  

 - 25 - 

 slogans (and all translations, adaptations, derivations and combinations of the foregoing) and Internet domain names,
together with all goodwill associated with each of the foregoing; (iii) copyrights and copyrightable works; (iv) registrations and applications for any of the foregoing; (v) trade secrets, confidential information, know-how and inventions; (vi)
computer software (including but not limited to source code, executable code, data, databases and documentation); and (vii) all other intellectual property. 
  
 (b) Section 3.19(b) of the Disclosure Schedule sets forth a complete and correct list of all of the following that is both owned and used by the Company
in the conduct of its business as presently conducted: (i) letters patent and pending patent applications; (ii) trademarks, service marks and Internet domain names that are either registered or for which there are pending registration applications;
(iii) material unregistered trademarks, material unregistered service marks, trade names, corporate names, and Internet domain names; (iv) registered copyrights; and (v) computer software. 
  
 (c) The Company owns and possesses all right, title and interest in and to
all of the Intellectual Property set forth in Section 3.19(b) of the Disclosure Schedule and has a valid and enforceable license to use, the Intellectual Property that is the subject of the license agreements set forth in Section 3.13(a)(xi)(B) of
the Disclosure Schedule and, to the Knowledge of the Company, such Intellectual Property is all of the Intellectual Property necessary for the operation of the Company’s business as presently conducted (collectively, the “Company
Intellectual Property”). Except as set forth in Section 3.19(c) of the Disclosure Schedule, the Company Intellectual Property is not subject to any liens, security interests or other encumbrances, and is not subject to any restrictions or
limitations regarding use or disclosure other than pursuant to a written license agreement set forth in Section 3.13(a)(xi)(B) of the Disclosure Schedule. 
  
 (d) Neither the Company nor anyone acting on behalf of the Company, including without limitation any employee, officer, director, agent, consultant,
contractor, subcontractor or shareholder of the Company, has infringed or misappropriated any copyrights, trade secrets or confidential information, or, to the Knowledge of the Company, any patents, of any third party in the development of the
Company’s products or the operation of the Company’s business as currently conducted or as currently proposed to be conducted. Neither the Company nor anyone acting on behalf of the Company, including without limitation any employee,
officer, director, agent, consultant, contractor, subcontractor or shareholder of the Company, has developed any Company product in violation of an agreement with a third party. The Company is not aware of any facts which indicate a likelihood of
any of the foregoing and the Company has not received any notices regarding any of the foregoing (including, without limitation, any demands or offers to license any Intellectual Property from any third party). 
  
 (e) To the Knowledge of the Company, all of the Company Intellectual Property
is valid and enforceable. No claim by any third party contesting the validity, enforceability, use or ownership of any of the Company’s Intellectual Property rights has been received by the Company, and to the Knowledge of the Company there are
no grounds for the same. 
  

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 (f) Subject to the reasonable business judgment of the Company exercised in the ordinary course of
business, the Company has taken all necessary and desirable actions to maintain and protect all of the Company Intellectual Property and will continue to maintain and protect all of the Company Intellectual Property prior to the Closing so as not to
adversely affect the validity or enforceability thereof. 
  
 (g)
To the Knowledge of the Company, no third party has infringed or misappropriated any of the Company Intellectual Property and the Company is not aware of any facts that indicate a likelihood of any of the foregoing. 
  
 (h) Except as set forth in Section 3.19(h) of the Disclosure Schedule,
immediately subsequent to the Closing, the Company Intellectual Property will be owned by or available for use by the Company on terms and conditions identical to those under which the Company owned or used the Company Intellectual Property
immediately prior to the Closing. 
  
 (i) Except as set forth in
Section 3.19(i) of the Disclosure Schedule, the sale or licensing of the Company’s products, including without limitation, any third-party software or software components embedded, integrated, bundled with or otherwise distributed with the
Company’s products, in the ordinary course of business is not governed, in whole or in part, by the terms of the GNU General Public License or any other license requiring the Company to disclose source code which it normally holds in
confidence. 
  
 (j) To the Knowledge of the Company, there are no
defects in any of the Company’s products that would prevent such products from performing in accordance with the Company’s published user specifications. To the Knowledge of the Company, there are no viruses, worms, Trojan horses or
similar programs in any of the Company’s products. 
  
 (k)
Except as set forth in Section 3.13(a)(xi)(B) and Section 3.19(k) of the Disclosure Schedule, the Company’s products were: (i) developed by employees of the Company working within the scope of their employment or as a work for hire at the time
of such development; or (ii) developed by officers, directors, agents, consultants, contractors, subcontractors or others who have executed appropriate instruments of assignment in favor of the Company as assignee that have conveyed to the Company
ownership of all of such individuals’ intellectual property rights in the Company’s products. 
  
 (l) Except as set forth in Section 3.19(l) of the Disclosure Schedule, the Company has not agreed to indemnify any third party for or against any
interference, infringement, misappropriation or other conflict with respect to any Intellectual Property. 
  
 3.20. Labor Matters. There are no activities or proceedings of any labor union to organize any employees of the Company and there are no strikes,
or material slowdowns, work stoppages or lockouts, or, to the Company’s Knowledge, threats thereof by or with respect to any employees, consultants, or other agents of the Company. The 
  

 - 27 - 

 Company and each of its Subsidiaries have complied in all material respects, and remain in compliance in all material
respects with all applicable laws, regulations and ordinances relating to the employment of labor, including but not limited to provisions thereof relating to wages, hours, equal opportunity, collective bargaining, immigration, layoffs and the
payment of social security and other Taxes (including without limitation, ERISA, the Worker Adjustment and Retaining Notification Act, 29 U.S.C. § 2101, et seq. or any similar state or local law), except for any noncompliance as would not have
a Material Adverse Effect on the Company. The Company is not delinquent in payments to any of its employees or consultants for any wages, salaries, commissions, bonuses or other compensation for any services, nor are there any outstanding or
threatened claims in that regard. None of the Company’s employment policies or practices is currently being audited or investigated by any federal, state or local government agency. There are no pending, or to the Company’s Knowledge
threatened claims, charges, actions, lawsuits or proceedings alleging claims against the Company brought by or on behalf of any employee or other individual or any Governmental Entity with respect to employment practices or any of the foregoing.

  
 3.21. Employees. With respect to the business of the
Company and except as set forth in Section 3.21 of the Disclosure Schedule: 
  
 (a) to the Knowledge of the Company and any of the Shareholders, no executive or manager of the Company (i) has any present intention to terminate his or her employment, (ii) is a party to any confidentiality,
non-competition, proprietary rights or other such agreement between such employee and any Person besides such entity that would be material to the performance of such employee’s employment duties, or the ability of such entity or NMI to conduct
the business of such entity or (iii) is a party to any confidentiality, non-competition, proprietary rights or other such agreement between such employee and any Person that would be breached or violated by the executive’s or manager’s
employment by NMI; 
  
 (b) no labor organization or group of
employees has filed any representation petition or made any written or oral demand for recognition; 
  
 (c) to the Knowledge of any of Shareholders or the Company, no union organizing or decertification efforts are underway or threatened and no other
question concerning representation exists; 
  
 (d) there is no
employment-related charge, complaint, grievance, investigation, inquiry or obligation of any kind, pending or to the Company’s Knowledge threatened in any forum, relating to an alleged violation or breach by the Company (or its or their
officers or directors) of any law, regulation or contract; 
  
 (e)
no employee or agent of the Company has committed any act or omission giving rise to material liability for any violation or breach identified in subsection (d) above; and 
  

 - 28 - 

 (f) there are no employment contracts or severance agreements with any employees of the Company, and
there are no written personnel policies, rules or procedures applicable to employees of the Company. Section 3.21 of the Disclosure Schedule lists (i) all employees of the Company, the rates of pay for each employee of the Company, and all
commission, bonus or other compensation or expense reimbursement or allowance arrangements between the Company and any of its employees, and (ii) each management or employment contract or contract for personal services and a description of any
understanding or commitment between the Company and any officer, consultant, director, employee, independent contractor or other person or entity. A true and complete copy of such contracts and a description of such understandings and commitments
has been delivered or made available to NMI. 
  
 3.22.
Insurance. Section 3.22 of the Disclosure Schedule sets forth a true, complete and correct list of all insurance policies of any kind or nature covering the Company with respect to the business of the Company, and the Assets, including
without limitation policies of life, fire, theft, employee fidelity, worker’s compensation, property and other casualty and liability insurance, and indicates the type of coverage, name of insured, the insurer, the premium, the expiration date
of each policy and the amount of coverage for statutory workers’ compensation. Section 3.22 of the Disclosure Schedule also sets forth a list of any currently pending claims and any claims previously asserted under such policies or similar
policies. The premiums for the insurance policies listed in Section 3.22 of the Disclosure Schedule have been fully paid. True, complete and correct copies of each such policy have been made available to NMI. None of such insurance policies are
subject to retroactive premium adjustment in respect of prior periods. With respect to each such insurance policy: (a) the policy is legal, valid, binding, enforceable on the Company and, to the Company’s Knowledge, the other parties thereto,
in full force and effect, and will not be affected by the consummation of the transactions contemplated hereby; (b) neither the Company, nor any of its Subsidiaries, nor to the Company’s Knowledge any other party to the policy is in breach or
default (including with respect to the payment of premiums or the giving of notices), and no event has occurred that, with notice or the lapse of time, would constitute such a breach or default, or permit termination, modification, or acceleration,
under the policy; and (c) no party to the policy has repudiated any provision thereof. 
  
 3.23. Environmental Matters. 
  
 (a) The Company has complied with and is currently in compliance with all Environmental and Safety Requirements and has no liabilities, including, without limitation, corrective, investigatory or remedial obligations arising under
Environmental and Safety Requirements, and the Company has not received any written or, to the Knowledge of the Company, oral notice, report or information regarding any such liabilities, including, without limitation, corrective, investigatory or
remedial obligations arising under Environmental and Safety Requirements which relate to the Company or any of its properties or facilities. 
  
 (b) Without limiting the generality of the foregoing, the Company has obtained and complied with, and is currently in compliance with, all licenses and
other 
  

 - 29 - 

 authorizations required pursuant to any Environmental and Safety Requirements for the occupancy of its properties or
facilities or the operation of its business. A list of all such permits, licenses and other authorizations which are material to the Company is set forth in Section 3.23 of the Disclosure Schedule. 
  
 (c) Neither this Agreement or the other agreements referred to herein, nor
the consummation of the transactions contemplated hereby and thereby shall impose any liabilities on the Company for site investigation or cleanup, or notification to or consent of any government agencies or third parties under any Environmental and
Safety Requirements (including, without limitation, any so called “transaction-triggered” or “responsible property transfer” laws and regulations). 
  
 3.24. Notes and Accounts Receivable. All notes and accounts receivable of the Company and its Subsidiaries are
reflected properly on their books and records, are valid receivables subject to no setoffs or counterclaims, are current and collectible, and will be collected in accordance with their terms at their recorded amounts, subject only to the reserve for
bad debts set forth on the face of the Latest Balance Sheet (rather than in any notes thereto). 
  
 3.25. Powers of Attorney. There are no outstanding powers of attorney executed on behalf of the Company or any of its Subsidiaries. 
  
 3.26. Officers and Directors; Bank Accounts. Section 3.26 of the
Disclosure Schedule lists all the officers and directors of the Company and its Subsidiaries, and all of the Company’s and its Subsidiaries’ bank accounts (designating each authorized signatory and the level of each signatory’s
authorization). 
  
 3.27. Investment Representation. Each
of the Shareholders (a) understands that the NMI Shares have not been, and will not be, registered under the Securities Act, or under any state securities laws except as pursuant to the Registration Rights Agreement, and are being offered and sold
in reliance upon federal and state exemptions for transactions not involving any public offering, (b) is acquiring the NMI Shares solely for his or her own account for investment purposes, and not with a view to the distribution thereof, (c) is a
sophisticated investor with knowledge and experience in business and financial matters, (d) has received and reviewed certain information concerning NMI as required under Regulation D of the Securities Act, such as NMI’s annual report,
definitive proxy statement, and its most recent reports filed on Forms 10-K and 10-Q for the past twelve (12) months, and has had the opportunity to obtain additional information as desired in order to evaluate the merits and the risks inherent in
holding the NMI Shares, (e) is able to bear the economic risk and lack of liquidity inherent in holding the NMI Shares, and (f) has been informed by NMI that the NMI Shares to be issued pursuant to this Agreement and the documents to be executed in
connection herewith will not be registered under the Securities Act at the time of their issuance and may not be transferred, assigned or otherwise disposed of unless the NMI Shares are subsequently registered under the Securities Act or an
appropriate exemption therefrom is available. Each Shareholder has further been informed that except as provided in the Registration Rights Agreement, NMI is under no obligation to register the NMI Shares under the Securities Act. 
  

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 3.28. Disclosure. All of the representations and warranties made available by the Company and by
any of the Shareholders in this Agreement and all statements set forth in certificates delivered by the Company at the Closing pursuant to this Agreement, do not contain any untrue statement of a material fact or omit to state a material fact
necessary in order to make the statements contained herein or therein not misleading. Copies of all documents and other written information referred to herein or in the Disclosure Schedule that have been delivered or made available to NMI are true,
correct and complete copies thereof and include all material amendments, supplements or modifications thereto or waivers thereunder. 
  
 4. REPRESENTATIONS AND WARRANTIES OF NMI 
  
 NMI hereby represents and warrants to the Shareholders that the statements contained in this Section 4 are correct and
complete as of the date of this Agreement and shall be correct and complete as of the Closing Date (as though made then and as though the Closing Date were substituted for the date of this Agreement throughout this Section 4). 
  
 4.1. Organization and Good Standing. NMI is a corporation duly
organized, validly existing and in good standing under the laws of the State of Delaware. NMI has full corporate power and authority to carry on the business in which it is engaged and to own and use the properties owned and used by it. 

 
 4.2. Authority of NMI. NMI has all requisite corporate power and
authority to enter into this Agreement and the documents contemplated hereby to be executed by NMI, respectively, and to perform the obligations to be performed by NMI, hereunder and thereunder. The execution, delivery and compliance by NMI with the
terms of this Agreement and the documents contemplated hereby to be executed by NMI, and the consummation by NMI, of the transactions contemplated hereby and thereby have been, or will be before the Closing, duly authorized by all necessary
corporate action by NMI. This Agreement has been duly executed and delivered by NMI. This Agreement constitutes, and the documents contemplated hereby to be executed by NMI, respectively, upon their execution and delivery as herein provided will
constitute the legal, valid and binding obligations of NMI, enforceable against the same in accordance with their respective terms subject to the effect of any applicable bankruptcy, reorganization, insolvency, moratorium or similar laws affecting
creditors’ rights generally and subject, as to enforceability, to the effect of general principles of equity. 
  
 4.3. Noncontravention. Neither the execution and delivery of this Agreement, nor the consummation of the transactions contemplated hereby, will (a)
materially violate any constitution, statute, regulation, rule, injunction, judgment, order, decree, ruling, charge, or other restriction of any Governmental Entity to which NMI is subject or any provision of its charter, bylaws, or other governing
documents or (b) materially conflict with, result in a breach of, constitute a default under, result in the acceleration of, create in any party 
  

 - 31 - 

 the right to accelerate, terminate, modify, or cancel, or require any notice under any material agreement, contract,
lease, license, instrument, or other arrangement to which NMI is a party or by which it is bound or to which any of its assets are subject. 
  
 4.4. Consents and Approvals. The execution and delivery by NMI of this Agreement and the documents contemplated hereby to be executed by NMI,
compliance by NMI with the terms hereof and thereof, and the consummation by NMI of the transactions contemplated hereby and thereby, do not require NMI, respectively, to obtain any consent, approval or action of, or make any filing with or give any
notice to (other than filings and press releases required under applicable securities laws) any corporation, person or firm or other entity or any Governmental Entity, the failure to obtain which could reasonably be expected to materially and
adversely affect the ability of NMI to consummate the transactions contemplated hereby. 
  
 4.5. Litigation. There are no actions, claims, suits, investigations, inquiries or proceedings pending against NMI or, to the Knowledge of NMI, threatened against NMI, at law or in equity, in any court, or
before or by any Governmental Entity which could reasonably be expected to affect the validity or enforceability of this Agreement or the documents contemplated hereby to be executed by NMI and neither NMI is in violation of any order, decree,
judgment, award, determination, ruling or regulation of any Governmental Entity, where such violation could reasonably be expected to affect the validity or enforceability of this Agreement. 
  
 4.6. Information. NMI has made available to the Shareholders its most
recent report filed on SEC Form 10-K and its reports filed on SEC Form 10-Q for the past 12 months. 
  
 4.7. Investment Representation. The Company Stock to be acquired by NMI pursuant to this Agreement will be acquired for NMI’s own account and
NMI agrees not to sell, transfer or otherwise dispose of such Company Stock except in compliance with the registration provisions of the Securities Act or pursuant to an exemption therefrom. NMI has such knowledge and experience in business matters
that it is capable of evaluating the merits and risks of the acquisition of the Company Stock, and NMI is making an informed investment decision with respect thereto. 
  
 4.8. Valid Issuance of NMI Shares. The NMI Shares to be issued pursuant to this Agreement will, if and when issued,
be duly authorized, validly issued, fully paid and non-assessable. 
  
 4.9. Financing. NMI has sufficient funds available to consummate the transactions contemplated by, and perform the obligations under, this Agreement and pay the fees and expenses it incurs in connection with such transactions and
obligations. 
  
 4.10. SEC Filings. NMI has filed its
Annual Report on Form 10-K for the year ended December 31, 2003 and, to the Knowledge of NMI, all subsequent forms, reports and documents required to be filed by it with the SEC (collectively, the “SEC Reports”). As of the
respective dates they were filed (and if amended or superseded by a filing prior 
  

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 to the date of this Agreement, then on the date of such filing) and to the Knowledge of NMI, (i) the SEC Reports complied
in all material respects with the requirements of the Securities Act or the Exchange Act, as the case may be, and (ii) none of the SEC Reports contained any untrue statement of a material fact or omitted to state a material fact required to be
stated therein or necessary in order to make the statements made therein, in the light of the circumstances under which they were made, not misleading. 
  
 4.11. No Misstatements. To the Knowledge of NMI, no representation or warranty made by NMI in this Agreement or certificate delivered or
deliverable pursuant to the terms hereof, contains or will contain, any untrue statement of a material fact, or omits, or will omit, when taken as a whole, to state a material fact, necessary in order to make the statements made, in light of the
circumstances under which they were made, not misleading. 
  
 5.
COVENANTS OF THE COMPANY AND THE SHAREHOLDERS 
  
 5.1. Affirmative Covenants. Between the date hereof and the Closing Date, except as otherwise expressly provided herein, the Company shall, and the
Shareholders shall cause the Company to: 
  
 (a) conduct the
Business, including, without limitation, the cash management customs and practices of the Business (including the collection of receivables and payment of payables) only in the Ordinary Course of Business; 
  
 (b) use best efforts to preserve the present business relationships with all
customers, suppliers, employees and distributors of the Company and its Subsidiaries; 
  
 (c) permit NMI and its respective employees, investors, agents, potential lenders, environmental consultants and accounting and legal representatives to have access, upon reasonable notice, and during normal business
hours to its books, records, invoices, contracts, leases, key personnel, independent accountants, legal counsel, customers, suppliers, property, facilities, equipment, and other things reasonably related to the Business; provided that NMI shall
coordinate all contact with any of the Company’s customers and suppliers through and with the written approval of, which written approval shall not be unreasonably withheld, the Shareholders Representative or its designee; 
  
 (d) promptly inform NMI in writing of any variances from the representations
and warranties contained in Section 3 hereof or any breach of any covenant hereunder by the Company or any Shareholder; provided that no disclosure by the Shareholders or the Company pursuant to this Section 5.1(d), however, shall be deemed
to amend or supplement the Disclosure Schedule or to prevent or cure any misrepresentation, breach of warranty, or breach of covenant; 
  
 (e) keep in full force and effect its corporate existence and all government licenses relating to or pertaining to its business and use best efforts to
obtain all consents, permits, licenses, approvals and other authorizations, and provide all notices, necessary to consummate the transactions contemplated hereby, and to cause the other conditions to NMI’s obligation to close to be satisfied;

  

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 (f) produce sufficient amounts of inventory such that the inventory on hand as of the Closing Date is
sufficient to conduct the Business in accordance with past custom and practice; 
  
 (g) to the extent the holders of record of the Company Shares changes between the date hereof and five (5) business days prior to the Closing Date, within five (5) business days prior to the Closing Date, deliver to
NMI a complete and accurate schedule of the holders of record of the Company Shares, showing for each such holder the number of Company Shares held by such holder; 
  
 (h) continue in full force and effect and in the same amounts, policies of insurance substantially equal in amount and scope
of coverage to that now maintained by the Company and not cancel any policies of insurance now maintained by the Company (other than any life insurance policies); and 
  
 (i) use all reasonable best efforts to take or cause to be taken all actions and to do or cause to be done all things
necessary under the terms of this Agreement or under applicable laws to consummate the transactions contemplated by this Agreement and to fulfill all of the closing conditions set forth in Section 6 herein, including without limitation, obtaining
all consents and approvals necessary for the consummation of the transactions contemplated herein. 
  
 5.2. Negative Covenants. Between the date hereof and the Closing Date, except as otherwise provided herein, the Company will not: 
  
 (a) except as disclosed in Section 5.2(a) of the Disclosure Schedule or
permitted under Section 5.2(c) below, take any action, commit to take any action or suffer any event or occurrence that would require disclosure under Section 3.9 hereof; 
  
 (b) take any action that, or omit to take any action the omission of which, would have a Material Adverse Effect;

  
 (c) except with the prior written approval of NMI, (i) enter
into any contract (A) out of the Ordinary Course of Business or (B) restricting in any way the conduct of the Business, (ii) make any loans, (iii) increase any officer’s or employee’s compensation, incentive arrangements or other benefits,
(iv) except for any acquisition of the Company’s capital stock by reason of the transactions contemplated herein, declare or pay any dividends, redeem, purchase or otherwise acquire directly or indirectly any of the Company’s capital
stock, or any outstanding rights or securities exercisable or exchangeable for or convertible into capital stock of the Company or otherwise make any distribution to any of its stockholders, (v) except as contemplated herein, amend its certificate
of incorporation or bylaws or issue or agree to issue any capital stock or any rights to acquire, or securities convertible into or exchangeable for, any of its capital stock, (vi) directly or indirectly engage in any transaction, arrangement or
contract with any Insider, (vii) execute any Guarantee or incur any Indebtedness or buy or sell any Assets or (viii) settle or compromise any litigation, claim, administrative or regulatory proceeding; 
  

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 (d) enter into any transaction, arrangement or contract (including, without limitation, any transfer of
any portion of the Company’s or any Subsidiaries’ assets or placing a Lien on any portion of any of their assets) in excess of $10,000 and outside the Ordinary Course of Business; 
  
 (e) sell, assign, transfer, license or otherwise dispose of or encumber any
Company Intellectual Property, except that the Company may license Company Intellectual Property to its customers so long as any such license shall not be in excess of $10,000 and outside the Ordinary Course of Business; 
  
 (f) change its methods, policies or practices of accounting in effect at
December 31, 2003, except as required by changes in GAAP as concurred in by the Company’s independent auditors and except that accrued cooperative advertising costs shall be adjusted to comply with GAAP and shall be consistent with the
Company’s internal financial statements as provided to NMI; 
  
 (g) change its fiscal year or make any material tax election; 
  
 (h) fail to continue planned marketing in the Ordinary Course of Business; 
  
 (i) fail to maintain supplies and inventory at levels that are in the Ordinary Course of Business; 
  
 (j) except with the prior written approval of NMI, hire any executives of the Company or any of its Subsidiaries or hire any salaried employees in
connection with the Business; 
  
 (k) except with the prior
written approval of NMI, make any capital expenditures or enter into any commitments greater than $25,000 individually or $50,000 in the aggregate; 
  
 (l) except with the prior written approval of NMI, file any amended Tax Return, enter into any closing agreement, settle any Tax claim or assessment
relating to the Company or any of its Subsidiaries, surrender any right to claim a refund of Taxes, consent to any extension or waiver of the limitations period applicable to any Tax claim or assessment relating to the Company or any of its
Subsidiaries, or take any other similar action relating to the filing of any Tax Return or the payment of any Tax, if such amendment, agreement, settlement, surrender, consent or other action would have the effect of increasing the Tax liability of
the Company or any of its Subsidiaries for any period ending after the Closing Date or decreasing any Tax attribute of the Company or any of its Subsidiaries existing on the Closing Date; 
  
 (m) subject to subsection (l) above, defer any capital expenditures during the period from the date hereof through and
including the Closing Date that would have otherwise been made in the Ordinary Course of Business; or 
  

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 (n) defer any research and development expenditures from the date hereof through and including the
Closing Date that would have otherwise been made in the Ordinary Course of Business. 
  
 5.3. Noncompetition/Nonsolicitation. 
  
 (a) As a condition precedent to NMI entering into and performing its obligations under this Agreement, NMI and the Founders agree as follows. With respect to each of the Founders for a period of two (2) years after
the Closing Date (the “Non-Competition/Non-Solicitation Period”), each such person shall not, without the prior written consent of the board of directors of NMI, anywhere in the United States of America or anywhere else in the
world, directly or indirectly, either for itself or for any other Person, own, operate, manage, control, engage in, participate in, invest in, permit its name to be used by, act as consultant or advisor to, render services for (alone or in
association with any Person) or otherwise assist in any manner, any customer or any Person that engages in or owns, invests in, operates, manages or controls any venture or enterprise which directly or indirectly engages or proposes to engage in the
research, design, production, packaging, manufacture, merchandising, distribution or sale of any products and services similar to any of the products and services of NMI, the Company or any of their Subsidiaries. Nothing herein shall prohibit any of
the Founders from (i) being a passive owner of not more than 1% of the outstanding stock of any class of securities of a publicly traded corporation engaged in such business, so long as it has no active participation in the business of such
corporation or (ii) performing any services for NMI, the Company or any of their Subsidiaries. 
  
 (b) As a condition precedent to NMI entering into and performing its obligations under this Agreement, NMI and the Founders agree as follows. During the Non-Competition/Non-Solicitation Period, the Founders shall not
directly or indirectly through another Person (i) induce or attempt to induce any employee of NMI, the Company or any of their Subsidiaries to leave the employ of NMI, the Company or any of their Subsidiaries, or in any way interfere with the
relationship between NMI, the Company or any of their Subsidiaries and any employee thereof, (ii) hire, employ or solicit any person who is or was an employee of NMI, the Company or any of their Subsidiaries, (iii) call on, solicit or service any
customer, supplier, licensee, licensor, franchisee or other business relation of NMI, the Company or any of their Subsidiaries, or in any way interfere with the relationship between any such customer, supplier, licensee or business relation and NMI,
the Company or any of their Subsidiaries (including, without limitation, inducing such person to cease doing business with NMI, the Company or any of their Subsidiaries or making any negative statements or communications about NMI, the Company or
any of their Subsidiaries) or (iv) directly or indirectly acquire or attempt to acquire any business in the United States of America which NMI, the Company or any of their Subsidiaries has identified to such Founder as a potential acquisition target
(an “Acquisition Target”), or take any action to induce or attempt to induce any Acquisition Target to consummate any acquisition, investment or other similar transaction with any Person other than NMI, the Company or any of their
Subsidiaries. 
  

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 (c) If, at the time of enforcement of this Section 5.3, a court shall hold that the duration, scope,
geographic area or other restrictions stated herein are unreasonable under circumstances then existing, NMI and the Founders agree that the maximum duration, scope, geographic area or other restrictions deemed reasonable under such circumstances by
such court shall be substituted for the stated duration, scope, geographic area or other restrictions. 
  
 (d) Each of the Founders recognizes and affirms that in the event of breach by it of any of the provisions of this Section 5.3, money damages would be
inadequate and NMI, the Company or any of their Subsidiaries would have no adequate remedy at law. Accordingly, each of the Founders agrees that NMI, the Company and their Subsidiaries shall have the right, in addition to any other rights and
remedies existing in their favor, to enforce their rights and each of the Founders’ obligations under this Section 5.3 not only by an action or actions for damages, but also by an action or actions for specific performance, injunctive and/or
other equitable relief in order to enforce or prevent any violations (whether anticipatory, continuing or future) of the provisions of this Section 5.3 (including, without limitation, the extension of the Non-Competition/Non-Solicitation Period by a
period equal to (i) the length of the violation of this Section 5.3 plus (ii) the length of any court proceedings necessary to stop such violation). In the event of a breach or violation by any of the Founders of any of the provisions of this
Section 5.3, the running of the Non-Competition/Non-Solicitation Period (but not of such Founder’s obligations under this Section 5.3) shall be tolled with respect to such Founder during the continuance of any actual breach or violation.

  
 5.4. Exclusivity. Each Shareholder and the Company, on
behalf of themselves and their Affiliates, agrees that, prior to Closing, neither they nor any of their respective officers, directors, employees, stockholders, agents or representatives will, directly or indirectly, (a) discuss or pursue a possible
sale, recapitalization, merger or other disposition of the Company or any of its Subsidiaries, any securities or substantial portion of the assets of the Company or any of its Subsidiaries or any interest therein with any other party or provide any
information to any other party in connection therewith or (b) disclose to any other party the terms of this Agreement. Each Shareholder and the Company represents that neither they nor any of their Affiliates will, by pursuing the transactions
contemplated hereby, violate the terms of any other agreement or obligation to which they or any such Affiliate is subject. 
  
 6. CONDITIONS TO OBLIGATIONS OF NMI 
  
 Except as may be waived in writing by NMI, the obligations of NMI to consummate this Agreement and the transactions to be
consummated by NMI hereunder on the Closing Date shall be subject to the satisfaction of the following conditions: 
  
 6.1. Representations and Warranties. Each of the representations and warranties set forth in Section 3 hereof that is qualified as to materiality
or Material Adverse Effect shall have been true and correct in all respects on the date of this Agreement and on the Closing Date (as though made on the Closing Date), and each of the representations and warranties set forth in Section 3 hereof that
is not so qualified shall have been true and 
  

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 correct in all material respects on the date of this Agreement and on the Closing Date (as though made on the Closing
Date), and NMI shall have received a certificate from each of the Shareholders Representative (on behalf of the Shareholders) and an officer of the Company (on behalf of the Company) to such effect with respect to the representations and warranties
set forth in Section 3 hereof. 
  
 6.2. Compliance with
Agreement. On and as of the Closing Date, the Company and the Shareholders shall have performed and complied in all material respects with the covenants and agreements required by this Agreement to be performed and complied with by the Company
and the Shareholders on or before the Closing Date. 
  
 6.3.
Closing Certificate. The Company and the Shareholders Representative (on behalf of the Shareholders) shall each have delivered a certificate dated as of the Closing Date to NMI, certifying the fulfillment of the conditions specified in
Sections 6.1 and 6.2 hereof. 
  
 6.4. Certificate of
Incorporation. The Company shall have delivered to NMI a copy of the certificate of incorporation (or formation) of the Company certified on or soon before the Closing Date by the Secretary of State of the State of Delaware. 
  
 6.5. Certificate of Good Standing. The Company shall have delivered to
NMI a copy of the certificate of good standing of the Company issued on or soon before the Closing Date by the Secretary of State of the State of Delaware and of each jurisdiction in which the Company is qualified to do business. 
  
 6.6. Intellectual Property. 
  
 (a) The Company shall have obtained an agreement executed by Scand LLC
assigning to the Company all of Scand LLC’s rights in and to the work undertaken to date by Scand LLC for the Company. 
  
 (b) The Company shall have obtained from each of its employees an executed Employee Proprietary Information and Inventions Agreement, substantially in
form and substance as set forth on Exhibit C attached hereto (the “Employee Proprietary Information and Inventions Agreement”), and a letter agreement, substantially in form and substance as set forth on Exhibit D
attached hereto, assigning to NMI all of that employee’s rights in and to any intellectual property invented, created or developed by such employee for the Company and not previously assigned to the Company (the “IP Assignment Letter
Agreement”). 
  
 6.7. No Action or Proceeding. On
the Closing Date, no action or proceeding shall be pending before any Governmental Entity or known to have been threatened to restrain, enjoin or otherwise prevent the consummation of this Agreement or the transactions contemplated hereby, and no
action or proceeding shall be pending before any Governmental Entity or known to have been threatened to recover any damages or obtain other relief as a result of this Agreement or the transactions contemplated herein or as a result of any agreement
entered into in connection with or as a condition precedent to the consummation thereof, which action or proceeding could reasonably be expected to result in a decision, ruling or finding which would have a Material Adverse Effect. 
  

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 6.8. Consents, Authorizations, etc. All orders, consents, permits, authorizations, approvals and
waivers of every Governmental Entity or third party required for the consummation of the transactions contemplated hereby, and all filings, registrations and notifications to or with all Governmental Entities required with respect to the
consummation of such transactions, shall have been obtained or given, provided that any third-party consent not obtained by the Company or the Shareholders, but waived by NMI, shall not be an unfulfilled condition hereunder. 
  
 6.9. Landlord Consent. NMI shall have received a duly executed consent
from the Landlord as required under the Lease Agreement, dated May 14, 2004, between Central Building, LLC (the “Landlord”) and the Company. 
  
 6.10. Conveyance of Shares. The Shareholders shall deliver to NMI the Company Shares duly executed for transfer to NMI and such other instruments
conveying title to the Company Shares, free and clear of all Liens. All such instruments of conveyance shall be in form and content reasonably satisfactory to NMI and its counsel. 
  
 6.11. Resignation. NMI shall have received the resignations, effective as of the Closing, of each director and
officer of the Company and its Subsidiaries other than those whom NMI shall have specified in writing to the Company at least three (3) business days prior to the Closing. 
  
 6.12. No Material Adverse Change. No incident or event shall have occurred resulting in any Material Adverse Change
to the Company (whether or not covered by insurance). 
  
 6.13.
Opinion of Counsel. NMI shall have received an opinion, addressed to NMI and dated as of the Closing Date, from counsel for the Company and the Shareholders, substantially in form and substance as set forth in Exhibit E attached hereto
(the “Legal Opinion”). 
  
 6.14. Corporate
Action by Company. All action necessary to authorize the execution, delivery and performance by the Company of this Agreement shall have been duly and validly taken by the Company, and the Company shall have delivered to NMI copies, certified on
the Closing Date by the Secretary of the Company, of all resolutions of the board of directors of the Company authorizing this Agreement and the transactions contemplated hereby. 
  
 6.15. Release Agreement. Each of the persons listed in Section 6.15 of the Disclosure Schedule shall have executed
and delivered to the Company an Acknowledgement and Release Agreement substantially in form and substance as set forth in Exhibit F attached hereto (the “Acknowledgement and Release Agreement”). 
  
 6.16. Community Property Waiver. The Company shall have obtained from
each of the spouses of the married Shareholders listed in Section 6.16 of the Disclosure Schedule a duly executed spousal consent, substantially in form and substance as set forth in Exhibit G attached hereto (the “Spousal
Consent”). 
  

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 7. CONDITIONS TO OBLIGATIONS OF THE
COMPANY AND SHAREHOLDERS 
  
 Except as may be waived in writing by the Shareholders, the obligations of the Company and the Shareholders to consummate this Agreement and the transactions to be consummated by the Company and the Shareholders
hereunder on the Closing Date shall be subject to the following conditions: 
  
 7.1. Representations and Warranties. Each of the representations and warranties set forth in Section 4 hereof that is qualified as to materiality or Material Adverse Effect shall have been true and correct in
all respects on the date of this Agreement and on the Closing Date (as though made on the Closing Date), and each of the representations and warranties set forth in Section 4 hereof that is not so qualified shall have been true and correct in all
material respects on the date of this Agreement and on the Closing Date (as though made on the Closing Date), and the Shareholders Representative shall have received a certificate from an officer of NMI to such effect with respect to the
representations and warranties set forth in Section 4 hereof. 
  
 7.2. Compliance with Agreement. On and as of the Closing Date, NMI shall have performed and complied in all material respects with the covenants and agreements required by this Agreement to be performed and complied with by NMI on or
before the Closing Date. 
  
 7.3. Officer’s
Certificate. NMI shall have delivered to the Shareholders an officer’s certificate, dated the Closing Date and signed on behalf of NMI by a duly authorized officer of NMI, certifying the fulfillment of the conditions specified in Sections
7.1 and 7.2 hereof. 
  
 7.4. No Action or Proceeding. On
the Closing Date, no action or proceeding shall be pending before any Governmental Entity or known to have been threatened to restrain, enjoin or otherwise prevent the consummation of this Agreement or the transactions contemplated hereby, and no
action or proceeding shall be pending before any Governmental Entity or known to have been threatened to recover any damages or obtain other relief as a result of this Agreement or the transactions contemplated herein or as a result of any agreement
entered into in connection with or as a condition precedent to the consummation thereof, which action or proceeding could reasonably be expected to result in a decision, ruling or finding which would have a material adverse effect on the assets or
operating results of NMI. 
  
 7.5. Consents, Authorizations,
etc. All orders, consents, permits, authorizations, approvals and waivers of every Governmental Entity or third party required for the consummation of the transactions contemplated hereby, and all filings, registrations and notifications to or
with all Governmental Entities required with respect to the consummation of such transactions, shall have been obtained or given. 
  

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 7.6. Delivery of NMI Shares. The certificates representing the NMI Shares shall have been
delivered as described in Section 2.3. 
  
 7.7. Registration
Rights Agreement. NMI shall have executed and delivered to the Shareholders the Registration Rights Agreement. 
  
 7.8. Employee Benefits Plans. From and after the Closing, NMI shall provide current employees of the Company (so long as they remain employed by
the Company) with (a) those employee benefits which, in the aggregate, are substantially similar to those benefits provided by the Company immediately prior to the Closing or (b) those benefits provided by NMI to other of its similarly situated
employees, each in accordance with the terms and conditions of the applicable employee benefit plans. Nothing contained herein confers upon any employee or former employee of the Company any rights or remedies of any nature under or by reason of
this Section 7.8. 
  
 8. INDEMNIFICATION 
  
 8.1. Survival. All representations, warranties, covenants and
agreements made by the Shareholders and the Company as set forth in this Agreement or in any schedule or exhibit to this Agreement shall survive the Closing Date and the consummation of the transactions contemplated hereby for a period of eighteen
(18) months. Notwithstanding the foregoing, (a) there shall be no time limitation with respect to any claim arising out of any breach of any representation or warranty made by the Company, its Subsidiaries, or the Shareholders in Sections 3.2
(Capitalization), 3.4 (Authorization), 3.5 (Noncontravention), and 3.14 (Assets of the Company) of this Agreement (the “Fundamental Representations”); and (b) in the event of any breach of any representation or warranty by the
Company, its Subsidiaries, or the Shareholders that constitutes fraud or intentional misrepresentation, the representation or warranty shall survive the consummation of the transactions contemplated in this Agreement and continue in full force and
effect without any time limitation with respect to such breach. 
  
 8.2. Indemnification of NMI Indemnitees. 
  
 (a)
The Shareholders agree, jointly and severally, to indemnify and hold the NMI Indemnitees (as defined below) harmless from and against: 
  
 (i) any and all liabilities, obligations, damages, deficiencies and expenses resulting from any breach of the representations, warranties, covenants or
any other agreements on the part of the Company or the Shareholders under the terms of this Agreement or any other agreements, certificates or other instruments delivered in connection herewith (which breach or alleged breach shall be determined for
purposes of this Section 8 without regard to any qualification based on Knowledge, materiality or Material Adverse Effect contained in such representations, warranties, covenants, and other agreements); 
  
 (ii) any and all liabilities, obligations, claims, damages, costs and
expenses arising out of an untrue statement of a material fact or omission to state a material fact in a registration statement or report filed by NMI under the Securities Act or the Exchange Act, but only insofar as any such misstatement or
omission results from information furnished by the Company prior to Closing or by the Shareholders; and 
  

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 (iii) any loss, liability, deficiency, damage or expense (including reasonable legal expenses and costs,
consultants’ fees and expenses, remedial or cleanup costs, consequential, punitive, indirect statutory and enhanced damages, royalties and settlement costs, redesign or design around costs and including interest and penalties) relating to or
resulting from any of the foregoing. 
  
 (b) Except for the claims
of indemnification in respect of breaches or alleged breaches of the Fundamental Representations or breaches or alleged breaches that constitute or may constitute fraud or intentional misrepresentation, the aggregate amount of all payments made by
the Shareholders in satisfaction of claims for indemnification pursuant to this Section 8 shall not exceed the Escrow Amount (the “Shareholders Cap”) and to the extent that payments are made out of the Escrow Account in satisfaction
of claims for indemnification pursuant to this Section 8, then the amount of such payment shall count towards the satisfaction of the Shareholders Cap; provided, however, that the Shareholders Cap shall not apply with respect to any Losses
resulting from or relating to any breach of a Fundamental Representation or a breach of any representation or warranty by the Company, any Subsidiary of the Company or any Shareholder that results from any criminal activity of the Company, any
Subsidiary of the Company or any Shareholder, which results in a conviction for a felony, entry of a plea of guilty or nolo contendere to a felony, or constitutes fraud or intentional misrepresentation, and it being understood that
such Losses shall not count towards satisfaction of the Shareholders Cap; and provided further that in no event shall (i) the liability of any Shareholder (other than the Principal Shareholders) under this Section 8 exceed the aggregate
amount (exclusive of all taxes, costs and other fees due or payable) of the Final Purchase Price actually received by such Shareholder (for the avoidance of doubt, the amount of Stock Consideration actually received shall be determined by
multiplying (A) the price per share of NMI Shares reported on the Nasdaq National Market or any other national securities exchange, market or trading or quotation facility on which the NMI Shares are then listed or quoted as of the Closing Date by
(B) the number of NMI Shares actually received by such Shareholder pursuant to this Agreement) and (ii) the total liability of the Principal Shareholders under this Section 8 exceed the aggregate amount of the Final Purchase Price actually received
by all Shareholders (subject to the same adjustments and calculations used in (i) above). 
  
 8.3. Indemnification of Shareholder Indemnitees. NMI agrees to indemnify and hold the Shareholder Indemnitees (as defined below) harmless from and against any and all liabilities, obligations, damages,
deficiencies and expenses resulting from any misrepresentation, breach of warranty or nonfulfillment of any covenant or agreement on the part of NMI under the terms of this Agreement or any other agreement or certificate delivered in connection
herewith. 
  
 8.4. Method of Asserting Claims, etc. The
items listed in Section 8.2(a) and Section 8.3 are collectively referred to herein as “Losses”; provided, that such reference shall be understood to mean the respective losses from and against which NMI and its 
  

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 officers, directors, shareholders, agents and attorneys (the “NMI Indemnitees”) or the Shareholders and
their respective agents and attorneys (the “Shareholder Indemnitees”), as the case may be, are indemnified as the context requires. The person claiming indemnification hereunder, whether an NMI Indemnitee or a Shareholder
Indemnitee, is sometimes referred to as the “Indemnified Party” and the party against whom such claims are asserted hereunder is sometimes referred to as the “Indemnifying Party”. All claims for indemnification by
an Indemnified Party under Section 8.2 or Section 8.3 hereof, as the case may be, shall be asserted and resolved as follows: 
  
 (a) If any claim or demand for which an Indemnifying Party would be liable for Losses to an Indemnified Party hereunder is overtly asserted against or
sought to be collected from such Indemnified Party by a third party (a “Third Party Claim”), such Indemnified Party shall with reasonable promptness (but in no event later than thirty (30) days after the Third Party Claim is so
asserted or sought against the Indemnified Party) notify in writing the Indemnifying Party of such Third Party Claim enclosing a copy of all papers served, if any, and specifying the nature of and specific basis for such Third Party Claim and the
amount or the estimated amount thereof to the extent then feasible, which estimate shall not be conclusive of the final amount of such Third Party Claim (the “Claim Notice”). For this purpose, the commencement by a third party of
any audit or other investigation respecting Taxes relating to any period or portion thereof prior to Closing shall constitute a Third Party Claim. Notwithstanding the foregoing, failure to so provide a Claim Notice as provided above shall not
relieve the Indemnifying Party from its obligation to indemnify the Indemnified Party with respect to any such Third Party Claim except to the extent that a failure to timely notify the Indemnifying Party prejudices the Indemnifying Party’s
ability to defend against the Third Party Claim. The Indemnifying Party shall have fifteen (15) days from delivery of the Claim Notice (the “Notice Period”) to notify the Indemnified Party (i) whether or not the Indemnifying Party
disputes the liability of the Indemnifying Party to the Indemnified Party hereunder with respect to such Third Party Claim and (ii) whether or not the Indemnifying Party desires, at the sole cost and expense of the Indemnifying Party, to defend the
Indemnified Party against such Third Party Claim. 
  
 (b) If the
Indemnifying Party notifies the Indemnified Party within the Notice Period that the Indemnifying Party does not dispute its liability to the Indemnified Party and that the Indemnifying Party desires to defend the Indemnified Party with respect to
the Third Party Claim pursuant to this Section 8, then the Indemnifying Party shall have the right to defend, at its sole cost and expense, such Third Party Claim by all appropriate proceedings, which proceedings shall be diligently prosecuted by
the Indemnifying Party to a final conclusion or settled at the discretion of the Indemnifying Party (but only if the Indemnifying Party is liable hereunder to the Indemnified Party for the full amount of, and all obligations under, such settlement
or entry of judgment or such settlement or entry of judgment includes a release of the Indemnified Party from all liability with respect to such Third Party Claim; otherwise, no such settlement or entry of judgment shall be agreed to without the
prior written consent of the Indemnified Party). If the Indemnifying Party is liable hereunder to the Indemnified Party for the full amount of such Third Party Claim, the Indemnifying Party shall have full control of such defense and proceedings,
including any compromise or settlement thereof; provided, that the 
  

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 Indemnified Party is hereby authorized, at the sole cost and expense of the Indemnifying Party (but only if the
Indemnified Party is actually entitled to indemnification hereunder or if the Indemnifying Party assumes the defense with respect to the Third Party Claim), to file during the Notice Period any motion, answer or other pleadings which the Indemnified
Party shall deem necessary or appropriate to protect its interests or those of the Indemnifying Party and not prejudicial to the Indemnifying Party (it being understood and agreed that if an Indemnified Party takes any such action which is
prejudicial and conclusively causes a final adjudication which is adverse to the Indemnifying Party, the Indemnifying Party shall be relieved of its obligations hereunder with respect to such Third Party Claim); and provided
further, that if requested by the Indemnifying Party, the Indemnified Party agrees, at the sole cost and expense of the Indemnifying Party, to cooperate with the Indemnifying Party and its counsel in contesting any Third Party Claim
which the Indemnifying Party elects to contest, or, if appropriate and related to the Third Party Claim in question, in making any counterclaim against the person asserting the Third Party Claim, or any cross-complaint against any person. The
Indemnified Party may participate in, but not control (except if the Indemnifying Party is not liable hereunder to the Indemnified Party for the full amount of such Third Party Claim, in which case whichever of the Indemnifying Party or the
Indemnified Party is liable for the largest amount of Losses with respect to the Third Party Claim shall control; provided that, if the Indemnified Party may control such defense in a settlement pursuant to the foregoing, such Indemnified Party
shall not enter into any settlement without the Indemnifying Party’s prior written consent), any defense or settlement of any Third Party Claim with respect to which the Indemnifying Party is participating pursuant to this Section 8.4(b), and
except as provided in the preceding sentence, the Indemnified Party shall bear its own costs and expenses with respect to such participation. Notwithstanding any of the foregoing, in the event that the amount of the Third Party Claim equals or
exceeds the amount then existing in the Escrow Account and the Indemnified Party is an NMI Indemnitee, then such NMI Indemnitee shall have the right, but not the obligation, to defend itself against the Third Party Claim and exercise full and
exclusive control of any defense or proceedings related thereto, regardless of whether, pursuant to this Section 8.4, the Indemnifying Party desires to defend the Indemnified Party with respect thereto or in any other way exercise control over any
such defense or proceedings related thereto. 
  
 (c) If the
Indemnifying Party fails to notify the Indemnified Party within the Notice Period that the Indemnifying Party does not dispute its liability to the Indemnified Party and that the Indemnifying Party desires to defend the Indemnified Party pursuant to
this Section 8, then the Indemnified Party shall have the right to defend, at the sole cost and expense of the Indemnifying Party, the Third Party Claim by all appropriate proceedings, which proceedings shall be promptly and vigorously prosecuted by
the Indemnified Party to a final conclusion or settled, provided that, the Indemnified Party will not consent to the entry of any judgment or enter into any settlement (i) which does not include as an unconditional term thereof the giving to the
Indemnified Party by the third party of a release from all liability with respect to such suit, claim, action, or proceeding; (ii) unless there is no finding or admission of (A) any violation of applicable law by the Indemnified Party (or any
affiliate thereof), (B) any liability on the part of the Indemnified Party (or any affiliate thereof) or (C) any violation of the rights of any person and no effect on any other claims of a similar nature that may be made by the 
  

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 same third party against the Indemnified Party (or any affiliate thereof); or (iii) which exceeds the Shareholders Cap.
The Indemnified Party shall have full control of such defense and proceedings, including any compromise or settlement thereof; provided, that if requested by the Indemnified Party, the Indemnifying Party agrees, at the sole cost and expense
of the Indemnifying Party, to cooperate with the Indemnified Party and its counsel in contesting any Third Party Claim which the Indemnified Party is contesting, or, if appropriate and related to the Third Party Claim in question, in making any
counterclaim against the person asserting the Third Party Claim, or any cross-complaint against any person. Notwithstanding the foregoing provisions of this Section 8.4(c), if the Indemnifying Party has timely notified the Indemnified Party that the
Indemnifying Party disputes its liability to the Indemnified Party and if such dispute is resolved in favor of the Indemnifying Party by final, nonappealable order of a court of competent jurisdiction or an arbitral tribunal, the Indemnifying Party
shall not be required to bear the costs and expenses of the Indemnified Party’s defense pursuant to this Section 8.4(c) or of the Indemnifying Party’s participation therein at the Indemnified Party’s request and the Indemnified Party
shall reimburse the Indemnifying Party in full for all costs and expenses of such litigation. The Indemnifying Party may participate in, but not control, any defense or settlement controlled by the Indemnified Party pursuant to this Section 8.4(c)
(other than a dispute as to the Indemnifying Party’s liability to the Indemnified Party) and the Indemnifying Party shall bear its own costs and expenses with respect to such participation. 
  
 (d) If any Indemnified Party should have a claim against any Indemnifying
Party hereunder which does not involve a Third Party Claim, the Indemnified Party shall notify the Indemnifying Party, in writing, of such claim by the Indemnified Party, specifying the nature of and specific basis for such claim and the amount of
the estimated amount of such claim (the “Indemnity Notice”). If the Indemnifying Party does not notify the Indemnified Party within thirty (30) days from delivery of the Indemnity Notice that the Indemnifying Party disputes such
claim, the amount or estimated amount of such claim specified by the Indemnified Party shall be conclusively deemed a liability of the Indemnifying Party hereunder. If the Indemnifying Party has timely disputed such claim, as provided above, such
dispute shall be resolved by arbitration pursuant to Section 9 hereof. 
  
 8.5. Recoupment under the Escrow Agreement. From and after the Closing, any indemnification (except in respect of a breach of a Fundamental Representation or a breach of any representation or warranty by the Company, any Subsidiary
of the Company or any Shareholder that results from any criminal activity of the Company, any Subsidiary of the Company or any Shareholder, which results in a conviction for a felony, entry of a plea of guilty or nolo contendere to a
felony, or constitutes fraud or intentional misrepresentation, which are subject to the provisions of Section 8.2(b)) to which an NMI Indemnitee is entitled under this Agreement as a result of any claim shall be solely and exclusively satisfied by
recouping all of such claim from the Escrow Account in accordance with the terms of the Escrow Agreement. 
  
 8.6. Payment. Any payment pursuant to a claim for indemnification shall be made not later than fifteen (15) days after receipt by the Indemnifying
Party of written Notice 
  

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 from the Indemnified Party stating the amount of the claim, subject to the provisions of Section 8.4. No indemnification
payment by the Shareholders with respect to any Losses otherwise payable under Section 8.2 shall be payable until such time as all such Losses shall aggregate to more than $10,000. 
  
 8.7. Waiver of Claims. The Shareholders hereby waive all claims and rights whatsoever to indemnity, contribution or
subrogation from the Company, as arising under any document or instrument purporting to create or establish such claims or rights, or in any other manner, and regardless of the subject matter to which such claims or rights are related and whether
such claims or rights arose, result from or relate to events occurring prior or subsequent to the Closing. 
  
 8.8. Exclusive Remedy. Each of the parties hereto acknowledges and agrees that, from and after the Closing Date, its sole and exclusive monetary
remedy with respect to any and all claims relating to the subject matter of this Agreement shall be pursuant to the indemnification provisions set forth in this Section 8 and that notwithstanding anything herein to the contrary, no breach of a(n)
representation, warranty, covenant or agreement contained herein shall give rise to any right on the part of NMI or the Company, after consummation of the transaction contemplated hereby, to rescind this Agreement or any of the transactions herein,
except that nothing in this Agreement shall be deemed to constitute waiver of any injunctive or other equitable remedies or any tort claims of, or causes of action arising from, intentionally fraudulent misrepresentation, willful breach or deceit.

  
 9. ARBITRATION 
  
 9.1. Other than claims for injunctive relief brought by a party (which may
be brought either in any court or pursuant to this arbitration provision), any claim, dispute or controversy between the parties, under, arising out of or related to this Agreement or otherwise, including issues of specific performance, shall be
determined by arbitration in San Jose, California, under the American Arbitration Association (AAA) Commercial Arbitration Rules with Expedited Procedures in effect on the date hereof, as modified by this Agreement. There shall be one arbitrator
selected by the parties within 10 days of the arbitration demand or if not, by the AAA, who shall be (i) a partner in a commercial law firm with an active practice and (ii) not either retired or semi-retired. 
  
 9.2. Except as required by law, the existence of any dispute, any settlement
negotiations, the arbitration hearing, any submissions (including exhibits, testimony, proposed rulings and briefs), and the rulings thereupon shall be deemed confidential. As such, all parties hereto agree to maintain all such information as
confidential utilizing at least as great a standard of care as they utilize for Confidential Information in their own businesses. The arbitrator shall have the authority to impose sanctions for unauthorized disclosure of Confidential Information.

  
 9.3. Any issue about whether a claim is covered by this
Agreement shall be determined by the arbitrator. At the request of any party hereto made not later than 45 days after the arbitration demand, the parties agree to submit the dispute to nonbinding 
  

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 mediation which shall not delay the arbitration hearing date; provided that any party may decline to mediate and proceed
with arbitration. There shall be no substantive motions or discovery, except the arbitrator shall authorize such discovery and enter such prehearing orders as may be appropriate to insure a fair private hearing, which shall be held within 90 days of
the demand; and concluded within 3 days. These time limits are not jurisdictional. The arbitrator shall apply substantive law and may award injunctive relief, equitable relief (including specific performance), or any other remedy available from a
judge, including expenses, costs and attorney fees to the prevailing party and pre-award interest, but shall not have the power to award punitive damages. The decision of the arbitrator shall be final and binding and an order confirming the award or
judgment upon the award may be entered in any court having jurisdiction. The decision of the arbitrator shall be made in writing and shall set forth findings of fact and conclusions of law. The parties agree that the decision of the arbitrator shall
be the sole and exclusive remedy between them regarding any dispute presented or pled before the arbitrator. 
  
 9.4. The foregoing provisions notwithstanding, prior to initiation of arbitration proceedings, the parties may by mutual consent submit any claims,
disputes or controversies arising hereunder to nonbinding mediation. The mediator shall be selected by mutual consent and shall be a person acceptable to all parties. After commencement of mediation proceedings, any party may terminate mediation and
demand arbitration at any time. The costs of mediation shall be borne equally by all parties involved; provided, that if the matter is subsequently taken to arbitration, the mediation costs shall be awarded by the arbitrator. The parties agree that
mediation may be held in San Jose, California. 
  
 10.
TERMINATION 
  
 10.1. Termination. This
Agreement may be terminated at any time prior to the Closing only as follows: 
  
 (a) by mutual written consent of NMI, on the one hand, and the Company (acting on behalf of itself and all of the Shareholders), on the other hand; 
  
 (b) by either NMI, on the one hand, and the Company (acting on behalf of itself and all of the Shareholders), on the other
hand, if there has been a material misrepresentation or breach of warranty or breach of covenant on the part of the other party in the representations and warranties or covenants set forth in this Agreement or if events have occurred which have made
it impossible to satisfy a condition precedent to the terminating party’s obligation to consummate the transactions contemplated hereby, unless such terminating party’s breach of this Agreement has caused the condition to be unsatisfied;
or 
  
 (c) by NMI, on the one hand, and the Company (acting on
behalf of itself and all of the Shareholders), on the other hand, by delivery of written notice of termination to the other party prior to the Closing, if the transactions contemplated hereby have not been consummated within seventy (70) days
following the date hereof; provided that a party will not be entitled to terminate this Agreement pursuant to this subsection (c) 
  

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 if (i) that party’s breach of this Agreement has prevented the consummation of the transactions contemplated hereby
at or prior to such time or (ii) that party has failed to satisfy any condition set forth in Sections 6 or 7 hereof that such party was required to satisfy. 
  
 10.2. Effect of Termination. In the event of termination of this Agreement as provided in Section 10.1 hereof, this Agreement will forthwith become
void and there will be no liability or obligation hereunder (other than with respect to Sections 9 (Arbitration), 10.2, and 12 (Miscellaneous)) on the part of the Company, the Shareholders, or NMI, except for intentional or willful breaches of this
Agreement prior to the time of such termination. Notwithstanding the foregoing, if this Agreement is terminated other than pursuant to the foregoing Section 10.1(a), such termination will not affect any right or remedy which accrued hereunder or
under applicable laws prior to or on account of such termination, and the provisions of this Agreement shall survive such termination to the extent required so that each party may enforce all rights and remedies available to such party hereunder or
under applicable laws in respect of such termination. 
  
 10.3.
Waiver of Right to Terminate. The Company, the Shareholders, and NMI shall be deemed to have waived their respective rights to terminate this Agreement upon consummation of the transactions contemplated herein. No such waiver shall constitute
a waiver of any other rights arising from the non-fulfillment of any condition precedent set forth in Sections 6 or 7 hereof or any misrepresentation or breach of any warranty, covenant or agreement contained herein unless such waiver is made in
writing and then any such written waiver shall only constitute a waiver of the specific matters set forth therein. 
  
 11. NOTICES 
  
 All notices, requests, claims, demands and other communications hereunder shall be in writing and shall be given (and shall be deemed to have been duly
received, if so given) by confirmed facsimile, by personal delivery or by registered or certified mail, postage prepaid, return receipt requested, to the parties at the following addresses: 
  
 If to the Shareholders, to: 
  
 The address set forth opposite each Shareholder’s name on Schedule A

  
 With a copy to: 
  
 Gunderson Dettmer Stough Villeneuve Franklin & Hachigian, LLP

 220 West 42nd Street 
 20th
Floor 
 New York, NY 10036 
 Attention: Ward Breeze 
 Facsimile No.: (877)-881-3007 
  

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 If to the Company, to: 
  
 Librados, Inc. 
 World Headquarters 
 4695 Chabot Drive, Suite 115 
 Pleasanton, CA 94588 
 Attention: David Richards 
 Facsimile No.: (925) 397-6734 
  
 With a copy to: 
  
 Gunderson Dettmer Stough Villeneuve Franklin & Hachigian, LLP 
 220 West 42nd Street 
 20th Floor 
 New York, NY 10036 
 Attention: Ward Breeze

 Facsimile No.: (877)-881-3007 
  
 If to NMI, to: 
  
 NetManage, Inc. 
 20883 Stevens Creek Blvd.

 Cupertino, CA 95014 
 Attention: Steve Mitchell 
 Facsimile No.: (408) 342-7880 
  
 With a copy to: 
  
 Kirkland & Ellis LLP 
 333 Bush Street

 San Francisco, California 94104 
 Attention: Stephen Johnson 
 Facsimile No.: (415) 439-1339 
  
 Any party from time to time may change its address for the purpose of notices to that party by giving a similar notice
specifying a new address, but no such notice shall be deemed to have been given until it is actually received by the party sought to be charged with the contents. 
  
 12. MISCELLANEOUS 
  
 12.1. Incorporation of Schedules and Exhibits; Entire Agreement. The Exhibits and Schedules attached hereto are an integral part of this Agreement
and are incorporated herein by this reference and the specific references thereto contained herein. This Agreement supersedes all prior discussions and agreements among the parties with respect to the subject matter of this Agreement, and this
Agreement, including the Exhibits and Schedules hereto to be delivered in connection herewith, contains the sole and entire agreement among the parties hereto with respect to the subject matter hereof. 
  

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 12.2. Further Assurances. The Shareholders, at any time after the Closing Date, will promptly
execute, acknowledge and deliver any further deeds, assignments, conveyances and other assurances, documents and instruments of transfer, reasonably requested by NMI and necessary for the Shareholders to comply with the representations, warranties
and covenants contained herein and will take any action consistent with the terms of this Agreement that may reasonably be requested by NMI. 
  
 12.3. Waiver. Any term or condition of this Agreement may be waived at any time by the party which is entitled to the benefit thereof; such waiver
shall be in writing and shall be executed by the chairman, president or a vice president of NMI or the Company or by Shareholders holding at least a majority of the Company Shares (on behalf of all of the Shareholders), as applicable. A waiver on
one occasion shall not be deemed to be a waiver of the same or any other matter on a future occasion. 
  
 12.4. Amendment. This Agreement may be modified or amended only by a writing duly executed by or on behalf of NMI, the Company and Shareholders
holding at least a majority of the Company Shares. 
  
 12.5.
Headings. The headings contained in this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement. 
  
 12.6. Governing Law; Forum. Except as otherwise provided herein, including but not limited to the intent of the
parties to this Agreement to seek arbitration pursuant to Section 9, this Agreement and all rights and obligations hereunder, including matters of construction, validity and performance shall be governed by the laws of the State of California,
without giving effect to the principles of conflicts of laws thereof. Suits for injunctive relief brought by any party arising out of, with respect to, or related to this Agreement or the transactions contemplated hereby may be brought in any
federal or state court sitting in Santa Clara County, California. All parties hereby irrevocably consent to the jurisdiction of the courts specified above, waive any objection to the jurisdiction or convenience thereof, waive any right to jury
trial, and agree that service of process may be effected by registered mail to the address specified in or otherwise provided pursuant to Section 11. 
  
 12.7. Binding Effect. This Agreement shall be binding upon and inure to the benefit of the parties and their respective successors and assigns;
provided, that this Agreement or any right or part hereunder shall not be voluntarily assigned by any party hereto without the prior written consent of the other parties hereto, except that NMI may assign its rights and obligations hereunder
to a wholly owned, direct or indirect, Subsidiary of NMI. 
  
 12.8. Expenses. Irrespective of whether or not the Closing is effected, NMI shall pay all costs and expenses it incurs with respect to the negotiation, execution, delivery and performance of this Agreement. If the Closing is
effected, NMI shall, at the Closing, reimburse the reasonable fees and out-of-pocket expenses of Gunderson Dettmer Stough Villeneuve Franklin & Hachigian, LLP, special counsel for the Company, not to 
  

 - 50 - 

 exceed $50,000. The Company acknowledges the payment of Gunderson Dettmer Stough Villeneuve Franklin & Hachigian,
LLP’s fees by NMI raises a potential conflict of interest and hereby consents to the payment arrangement set forth herein. The Company also acknowledges that it is responsible for all fees and expenses it incurs with respect to the negotiation,
execution, delivery and performance of this Agreement and the transactions contemplated hereby that are not paid by NMI pursuant to this Agreement irrespective of whether or not the Closing is effected. The Parties hereto acknowledge that the fees
and expenses of Gunderson Dettmer Stough Villeneuve Franklin & Hachigian, LLP shall be paid on the Closing Date. 
  
 12.9. Attorneys Fees. If any action at law or in equity is necessary to enforce or interpret the terms of this Agreement, the prevailing party
shall be entitled to reasonable attorney’s fees, costs and necessary disbursements in addition to any other relief to which such party may be entitled. 
  
 12.10. No Third Party Beneficiaries. Except as otherwise expressly set forth in this Agreement, nothing herein expressed or implied is intended or
shall be construed to confer upon or give to any Person, other than the parties hereto and their respective permitted successors and assigns any rights or remedies under or by reason of this Agreement, such third parties specifically including,
without limitation, employees or creditors of the Company or any of its Subsidiaries. 
  
 12.11. Counterparts. This Agreement may be executed simultaneously in any number of counterparts, each of which shall be deemed an original, but all of which taken together shall constitute one and the same
instrument. 
  
 [Signature pages follow] 
  

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 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the 22nd day of
September, 2004. 
  

			
	NMI:
	
	NetManage, Inc.
		
	By:	 	 /s/ Zvi Alon

	Name:	 	 Zvi Alon

	Title:	 	 President & CEO

	
	THE COMPANY:
	
	Librados, Inc.
		
	By:	 	 /s/David James Richards

	Name:	 	 David James Richards

	Title:	 	 CEO

	
	THE SHAREHOLDERS:
	
	 /s/David James Richards

	David James Richards
	
	 /s/James Milton Campigli

	James Milton Campigli
	
	 /s/Mohammad Naeem Akhtar

	Mohammad Naeem Akhtar
	
	 /s/Vincent Eagen

	Vincent Eagen
	
	 /s/Keith Graham

	Keith Graham
	
	 /s/Chris Walton

	Chris Walton
	
	 /s/Satish N. N. Numburi

	Satish N. N. Numburi
	
	 /s/Madhuri Suda

	Madhuri Suda
	
	 /s/Vivian Stark

	Vivian Stark
	
	 /s/Susan Poulter

	Susan Poulter
	
	 /s/Larry Webster

	Larry Webster

  
 [SIGNATURE PAGE
TO STOCK PURCHASE AGREEMENT]

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