Document:

EX-10.5

 Exhibit 10.5 
 (Multicurrency—Cross Border) 
 ISDA® 

International Swap Dealers Association, Inc. 
 MASTER AGREEMENT 
 dated as of
[                    ] 

                     and Nissan Master Owner Trust
Receivables have entered and/or anticipate entering into one or more transactions (each a “Transaction”) that are or will be governed by this Master Agreement, which includes the schedule (the “Schedule”), and the documents and
other confirming evidence (each a “Confirmation”) exchanged between the parties confirming those Transactions. 
 Accordingly, the
parties agree as follows: 
  

	1.	Interpretation 

 (a)
Definitions. The terms defined in Section 14 and in the Schedule will have the meanings therein specified for the purpose of this Master Agreement. 
 (b) Inconsistency. In the event of any inconsistency between the provisions of the Schedule and the other provisions of this Master Agreement, the Schedule will prevail. In the event of any
inconsistency between the provisions of any Confirmation and this Master Agreement (including the Schedule), such Confirmation will prevail for the purpose of the relevant Transaction. 
 (c) Single Agreement. All Transactions are entered into in reliance on the fact that this Master Agreement and all Confirmations form a single agreement between the parties (collectively
referred to as this “Agreement”), and the parties would not otherwise enter into any Transactions. 
  

	2.	Obligations 

 (a) General
Conditions. 
 (i) Each party will make each payment or delivery specified in each Confirmation to be made by it, subject
to the other provisions of this Agreement. 
 (ii) Payments under this Agreement will be made on the due date for value on that
date in the place of the account specified in the relevant Confirmation or otherwise 
 Copyright © 1992 by International
Swap Dealers Association, Inc 
 Issuer Master 

  

					
		  		  	

 
pursuant to this Agreement, in freely transferable funds and in the manner customary for payments in the required currency. Where settlement is by delivery (that is, other than by payment), such
delivery will be made for receipt on the due date in the manner customary for the relevant obligation unless otherwise specified in the relevant Confirmation or elsewhere in this Agreement. 

(iii) Each obligation of each party under Section 2(a)(i) is subject to (1) the condition precedent that no Event of Default or
Potential Event of Default with respect to the other party has occurred and is continuing, (2) the condition precedent that no Early Termination Date in respect of the relevant Transaction has occurred or been effectively designated and
(3) each other applicable condition precedent specified in this Agreement. 
 (b) Change of Account. Either party may change
its account for receiving a payment or delivery by giving notice to the other party at least five Local Business Days prior to the scheduled date for the payment or delivery to which such change applies unless such other party gives timely notice of
a reasonable objection to such change. 
 (c) Netting. If on any date amounts would otherwise be payable: 

(i) in the same currency; and 
 (ii) in respect of the same Transaction, 
 by each party to the other, then, on such date, each
party’s obligation to make payment of any such amount will be automatically satisfied and discharged and, if the aggregate amount that would otherwise have been payable by one party exceeds the aggregate amount that would otherwise have been
payable by the other party, replaced by an obligation upon the party by whom the larger aggregate amount would have been payable to pay to the other party the excess of the larger aggregate amount over the smaller aggregate amount. 

The parties may elect in respect of two or more Transactions that a net amount will be determined in respect of all amounts payable on the same date in
the same currency in respect of such Transactions, regardless of whether such amounts are payable in respect of the same Transaction. The election may be made in the Schedule or a Confirmation by specifying that subparagraph (ii) above will not
apply to the Transactions identified as being subject to the election, together with the starting date (in which case subparagraph (ii) above will not, or will cease to, apply to such Transactions from such date). This election may be made
separately for different groups of Transactions and will apply separately to each pairing of Offices through which the parties make and receive payments or deliveries. 
 (d) Deduction or Withholding for Tax. 
 (i) Gross-Up.
All payments under this Agreement will be made without any deduction or withholding for or on account of any Tax unless such deduction or withholding is required by any applicable law, as modified by the practice of any relevant governmental revenue
authority, then in effect. If a party is so required to deduct or withhold, then that party (“X”) will: 
 (1) promptly
notify the other party (“Y”) of such requirement; 

  

					
		  	2	  	Issuer Master

 (2) pay to the relevant authorities the full amount required to be deducted or withheld
(including the full amount required to be deducted or withheld from any additional amount paid by X to Y under this Section 2(d)) promptly upon the earlier of determining that such deduction or withholding is required or receiving notice that
such amount has been assessed against Y; 
 (3) promptly forward to Y an official receipt (or a certified copy), or other
documentation reasonably acceptable to Y, evidencing such payment to such authorities; and 
 (4) if such Tax is an Indemnifiable
Tax, pay to Y, in addition to the payment to which Y is otherwise entitled under this Agreement, such additional amount as is necessary to ensure that the net amount actually received by Y (free and clear of Indemnifiable Taxes, whether assessed
against X or Y) will equal the full amount Y would have received had no such deduction or withholding been required. However, X will not be required to pay any additional amount to Y to the extent that it would not be required to be paid but for:

 (A) the failure by Y to comply with or perform any agreement contained in Section 4(a)(i), 4(a)(iii) or 4(d); or

 (B) the failure of a representation made by Y pursuant to Section 3(f) to be accurate and true unless such failure would
not have occurred but for (I) any action taken by a taxing authority, or brought in a court of competent jurisdiction, on or after the date on which a Transaction is entered into (regardless of whether such action is taken or brought with
respect to a party to this Agreement) or (II) a Change in Tax Law. 
 (ii) Liability. If: 

(1) X is required by any applicable law, as modified by the practice of any relevant governmental revenue authority, to make any deduction
or withholding in respect of which X would not be required to pay an additional amount to Y under Section 2(d)(i)(4); 
 (2)
X does not so deduct or withhold; and 
 (3) a liability resulting from such Tax is assessed directly against X, 

then, except to the extent Y has satisfied or then satisfies the liability resulting from such Tax, Y will promptly pay to X the amount of
such liability (including any related liability for interest, but including any related liability for penalties only if Y has failed to comply with or perform any agreement contained in Section 4(a)(i), 4(a)(iii) or 4(d)). 

(e) Default Interest; Other Amounts. Prior to the occurrence or effective designation of an Early Termination Date in respect of the
relevant Transaction, a party that defaults in the 

  

					
		  	3	  	Issuer Master

 
performance of any payment obligation will, to the extent permitted by law and subject to Section 6(c), be required to pay interest (before as well as after judgment) on the overdue amount
to the other party on demand in the same currency as such overdue amount, for the period from (and including) the original due date for payment to (but excluding) the date of actual payment, at the Default Rate. Such interest will be calculated on
the basis of daily compounding and the actual number of days elapsed. If, prior to the occurrence or effective designation of an Early Termination Date in respect of the relevant Transaction, a party defaults in the performance of any obligation
required to be settled by delivery, it will compensate the other party on demand if and to the extent provided for in the relevant Confirmation or elsewhere in this Agreement. 

 

	3.	Representations 

 Each party represents to
the other party (which representations will be deemed to be repeated by each party on each date on which a Transaction is entered into and, in the case of the representations in Section 3(f), at all times until the termination of this
Agreement) that: 
 (a) Basic Representations. 
 (i) Status. It is duly organised and validly existing under the laws of the jurisdiction of its organisation or incorporation and, if relevant under such laws, in good standing; 

(ii) Powers. It has the power to execute this Agreement and any other documentation relating to this Agreement to which it
is a party, to deliver this Agreement and any other documentation relating to this Agreement that it is required by this Agreement to deliver and to perform its obligations under this Agreement and any obligations it has under any Credit Support
Document to which it is a party and has taken all necessary action to authorise such execution, delivery and performance; 

(iii) No Violation or Conflict. Such execution, delivery and performance do not violate or conflict with any law applicable
to it, any provision of its constitutional documents, any order or judgment of any court or other agency of government applicable to it or any of its assets or any contractual restriction binding on or affecting it or any of its assets; 

(iv) Consents. All governmental and other consents that are required to have been obtained by it with respect to this
Agreement or any Credit Support Document to which it is a party have been obtained and are in full force and effect and all conditions of any such consents have been complied with; and 

(v) Obligations Binding. Its obligations under this Agreement and any Credit Support Document to which it is a party
constitute its legal, valid and binding obligations, enforceable in accordance with their respective terms (subject to applicable bankruptcy, reorganisation, insolvency, moratorium or similar laws affecting creditors’ rights generally and
subject, as to enforceability, to equitable principles of general application (regardless of whether enforcement is sought in a proceeding in equity or at law)). 
 (b) Absence of Certain Events. No Event of Default or Potential Event of Default or, to its knowledge, Termination Event with respect to it has occurred and is continuing and no such event
or circumstance would occur as a result of its entering into or performing its obligations under this Agreement or any Credit Support Document to which it is a party. 

  

					
		  	4	  	Issuer Master

 (c) Absence of Litigation. There is not pending or, to its knowledge, threatened against it
or any of its Affiliates any action, suit or proceeding at law or in equity or before any court, tribunal, governmental body, agency or official or any arbitrator that is likely to affect the legality, validity or enforceability against it of this
Agreement or any Credit Support Document to which it is a party or its ability to perform its obligations under this Agreement or such Credit Support Document. 
 (d) Accuracy of Specified Information. All applicable information that is furnished in writing by or on behalf of it to the other party and is identified for the purpose of this
Section 3(d) in the Schedule is, as of the date of the information, true, accurate and complete in every material respect. 
 (e)
Payer Tax Representation. Each representation specified in the Schedule as being made by it for the purpose of this Section 3(e) is accurate and true. 
 (f) Payee Tax Representations. Each representation specified in the Schedule as being made by it for the purpose of this Section 3(f) is accurate and true. 

 

	4.	Agreements 

 Each party agrees with the
other that, so long as either party has or may have any obligation under this Agreement or under any Credit Support Document to which it is a party: 
 (a) Furnish Specified Information. It will deliver to the other party or, in certain cases under subparagraph (iii) below, to such government or taxing authority as the other party
reasonably directs: 
 (i) any forms, documents or certificates relating to taxation specified in the Schedule or any
Confirmation; 
 (ii) any other documents specified in the Schedule or any Confirmation; and 

(iii) upon reasonable demand by such other party, any form or document that may be required or reasonably requested in writing in order to
allow such other party or its Credit Support Provider to make a payment under this Agreement or any applicable Credit Support Document without any deduction or withholding for or on account of any Tax or with such deduction or withholding at a
reduced rate (so long as the completion, execution or submission of such form or document would not materially prejudice the legal or commercial position of the party in receipt of such demand), with any such form or document to be accurate and
completed in a manner reasonably satisfactory to such other party and to be executed and to be delivered with any reasonably required certification, 
 in each case by the date specified in the Schedule or such Confirmation or, if none is specified, as soon as reasonably practicable. 

  

					
		  	5	  	Issuer Master

 (b) Maintain Authorisations. It will use all reasonable efforts to maintain in full force and
effect all consents of any governmental or other authority that are required to be obtained by it with respect to this Agreement or any Credit Support Document to which it is a party and will use all reasonable efforts to obtain any that may become
necessary in the future. 
 (c) Comply with Laws. It will comply in all material respects with all applicable laws and orders to
which it may be subject if failure so to comply would materially impair its ability to perform its obligations under this Agreement or any Credit Support Document to which it is a party. 
 (d) Tax Agreement. It will give notice of any failure of a representation made by it under Section 3(f) to be accurate and true promptly upon learning of such failure. 

(e) Payment of Stamp Tax. Subject to Section 11, it will pay any Stamp Tax levied or imposed upon it or in respect of its execution or
performance of this Agreement by a jurisdiction in which it is incorporated, organised, managed and controlled, or considered to have its seat, or in which a branch or office through which it is acting for the purpose of this Agreement is located
(“Stamp Tax Jurisdiction”) and will indemnify the other party against any Stamp Tax levied or imposed upon the other party or in respect of the other party’s execution or performance of this Agreement by any such Stamp Tax
Jurisdiction which is not also a Stamp Tax Jurisdiction with respect to the other party. 
  

	5.	Events of Default and Termination Events 

(a) Events of Default. The occurrence at any time with respect to a party or, if applicable, any Credit Support Provider of such party or
any Specified Entity of such party of any of the following events constitutes an event of default (an “Event of Default”) with respect to such party: 
 (i) Failure to Pay or Deliver. Failure by the party to make, when due, any payment under this Agreement or delivery under Section 2(a)(i) or 2(e) required to be made by it if such
failure is not remedied on or before the third Local Business Day after notice of such failure is given to the party; 
 (ii)
Breach of Agreement. Failure by the party to comply with or perform any agreement or obligation (other than an obligation to make any payment under this Agreement or delivery under Section 2(a)(i) or 2(e) or to give notice of a
Termination Event or any agreement or obligation under Section 4(a)(i), 4(a)(iii) or 4(d)) to be complied with or performed by the party in accordance with this Agreement if such failure is not remedied on or before the thirtieth day after
notice of such failure is given to the party; 
 (iii) Credit Support Default. 

(1) Failure by the party or any Credit Support Provider of such party to comply with or perform any agreement or obligation to be complied
with or performed by it in accordance with any Credit Support Document if such failure is continuing after any applicable grace period has elapsed; 

  

					
		  	6	  	Issuer Master

 (2) the expiration or termination of such Credit Support Document or the failing or ceasing
of such Credit Support Document to be in full force and effect for the purpose of this Agreement (in either case other than in accordance with its terms) prior to the satisfaction of all obligations of such party under each Transaction to which such
Credit Support Document relates without the written consent of the other party; or 
 (3) the party or such Credit Support
Provider disaffirms, disclaims, repudiates or rejects, in whole or in part, or challenges the validity of, such Credit Support Document; 
 (iv) Misrepresentation. A representation (other than a representation under Section 3(e) or (f)) made or repeated or deemed to have been made or repeated by the party or any Credit
Support Provider of such party in this Agreement or any Credit Support Document proves to have been incorrect or misleading in any material respect when made or repeated or deemed to have been made or repeated; 

(v) Default under Specified Transaction. The party, any Credit Support Provider of such party or any applicable Specified
Entity of such party (1) defaults under a Specified Transaction and, after giving effect to any applicable notice requirement or grace period, there occurs a liquidation of, an acceleration of obligations under, or an early termination of, that
Specified Transaction, (2) defaults, after giving effect to any applicable notice requirement or grace period, in making any payment or delivery due on the last payment, delivery or exchange date of, or any payment on early termination of, a
Specified Transaction (or such default continues for at least three Local Business Days if there is no applicable notice requirement or grace period) or (3) disaffirms, disclaims, repudiates or rejects, in whole or in part, a Specified
Transaction (or such action is taken by any person or entity appointed or empowered to operate it or act on its behalf); 
 (vi)
Cross Default. If “Cross Default” is specified in the Schedule as applying to the party, the occurrence or existence of (1) a default, event of default or other similar condition or event (however described) in respect
of such party, any Credit Support Provider of such party or any applicable Specified Entity of such party under one or more agreements or instruments relating to Specified Indebtedness of any of them (individually or collectively) in an aggregate
amount of not less than the applicable Threshold Amount (as specified in the Schedule) which has resulted in such Specified Indebtedness becoming, or becoming capable at such time of being declared, due and payable under such agreements or
instruments, before it would otherwise have been due and payable or (2) a default by such party, such Credit Support Provider or such Specified Entity (individually or collectively) in making one or more payments on the due date thereof in an
aggregate amount of not less than the applicable Threshold Amount under such agreements or instruments (after giving effect to any applicable notice requirement or grace period); 

  

					
		  	7	  	Issuer Master

 (vii) Bankruptcy. The party, any Credit Support Provider of such party
or any applicable Specified Entity of such party: 
 (1) is dissolved (other than pursuant to a consolidation, amalgamation or
merger); (2) becomes insolvent or is unable to pay its debts or fails or admits in writing its inability generally to pay its debts as they become due; (3) makes a general assignment, arrangement or composition with or for the benefit of
its creditors; (4) institutes or has instituted against it a proceeding seeking a judgment of insolvency or bankruptcy or any other relief under any bankruptcy or insolvency law or other similar law affecting creditors’ rights, or a
petition is presented for its winding-up or liquidation, and, in the case of any such proceeding or petition instituted or presented against it, such proceeding or petition (A) results in a judgment of insolvency or bankruptcy or the entry of
an order for relief or the making of an order for its winding-up or liquidation or (B) is not dismissed, discharged, stayed or restrained in each case within 30 days of the institution or presentation thereof; (5) has a resolution passed
for its winding-up, official management or liquidation (other than pursuant to a consolidation, amalgamation or merger); (6) seeks or becomes subject to the appointment of an administrator, provisional liquidator, conservator, receiver,
trustee, custodian or other similar official for it or for all or substantially all its assets; (7) has a secured party take possession of all or substantially all its assets or has a distress, execution, attachment, sequestration or other
legal process levied, enforced or sued on or against all or substantially all its assets and such secured party maintains possession, or any such process is not dismissed, discharged, stayed or restrained, in each case within 30 days thereafter;
(8) causes or is subject to any event with respect to it which, under the applicable laws of any jurisdiction, has an analogous effect to any of the events specified in clauses (1) to (7) (inclusive); or (9) takes any action in
furtherance of, or indicating its consent to, approval of, or acquiescence in, any of the foregoing acts; or 
 (viii)
Merger Without Assumption. The party or any Credit Support Provider of such party consolidates or amalgamates with, or merges with or into, or transfers all or substantially all its assets to, another entity and, at the time of such
consolidation, amalgamation, merger or transfer: 
 (1) the resulting, surviving or transferee entity fails to assume all the
obligations of such party or such Credit Support Provider under this Agreement or any Credit Support Document to which it or its predecessor was a party by operation of law or pursuant to an agreement reasonably satisfactory to the other party to
this Agreement; or 
 (2) the benefits of any Credit Support Document fail to extend (without the consent of the other party) to
the performance by such resulting, surviving or transferee entity of its obligations under this Agreement. 

  

					
		  	8	  	Issuer Master

 (b) Termination Events. The occurrence at any time with respect to a party or, if applicable,
any Credit Support Provider of such party or any Specified Entity of such party of any event specified below constitutes an Illegality if the event is specified in (i) below, a Tax Event if the event is specified in (ii) below or a Tax
Event Upon Merger if the event is specified in (iii) below, and, if specified to be applicable, a Credit Event Upon Merger if the event is specified pursuant to (iv) below or an Additional Termination Event if the event is specified
pursuant to (v) below: 
 (i) Illegality. Due to the adoption of, or any change in, any applicable law after
the date on which a Transaction is entered into, or due to the promulgation of, or any change in, the interpretation by any court, tribunal or regulatory authority with competent jurisdiction of any applicable law after such date, it becomes
unlawful (other than as a result of a breach by the party of Section 4(b)) for such party (which will be the Affected Party): 
 (1) to perform any absolute or contingent obligation to make a payment or delivery or to receive a payment or delivery in respect of such Transaction or to comply with any other material provision of this
Agreement relating to such Transaction; or 
 (2) to perform, or for any Credit Support Provider of such party to perform, any
contingent or other obligation which the party (or such Credit Support Provider) has under any Credit Support Document relating to such Transaction; 
 (ii) Tax Event. Due to (x) any action taken by a taxing authority, or brought in a court of competent jurisdiction, on or after the date on which a Transaction is entered into
(regardless of whether such action is taken or brought with respect to a party to this Agreement) or (y) a Change in Tax Law, the party (which will be the Affected Party) will, or there is a substantial likelihood that it will, on the next
succeeding Scheduled Payment Date (1) be required to pay to the other party an additional amount in respect of an Indemnifiable Tax under Section 2(d)(i)(4) (except in respect of interest under Section 2(e), 6(d)(ii) or 6(e)) or
(2) receive a payment from which an amount is required to be deducted or withheld for or on account of a Tax (except in respect of interest under Section 2(e), 6(d)(ii) or 6(e)) and no additional amount is required to be paid in respect of
such Tax under Section 2(d)(i)(4) (other than by reason of Section 2(d)(i)(4)(A) or (B)); 
 (iii) Tax Event Upon
Merger. The party (the “Burdened Party”) on the next succeeding Scheduled Payment Date will either (1) be required to pay an additional amount in respect of an Indemnifiable Tax under Section 2(d)(i)(4) (except in respect
of interest under Section 2(e), 6(d)(ii) or 6(e)) or (2) receive a payment from which an amount has been deducted or withheld for or on account of any Indemnifiable Tax in respect of which the other party is not required to pay an
additional amount (other than by reason of Section 2(d)(i)(4)(A) or (B)), in either case as a result of a party consolidating or amalgamating with, or merging with or into, or transferring all or substantially all its assets to, another entity
(which will be the Affected Party) where such action does not constitute an event described in Section 5(a)(viii); 
 (iv)
Credit Event Upon Merger. If “Credit Event Upon Merger” is specified in the Schedule as applying to the party, such party (“X”), any Credit Support Provider of X or any applicable Specified Entity of X consolidates
or amalgamates with, or merges with or into, or transfers all or substantially all its assets, to, another entity and such action does not constitute an event described in Section 5(a)(viii) but the creditworthiness of the

  

					
		  	9	  	Issuer Master

 
resulting, surviving or transferee entity is materially weaker than that of X, such Credit Support Provider or such Specified Entity, as the case may be, immediately prior to such action (and, in
such event, X or its successor or transferee, as appropriate, will be the Affected Party); or 
 (v) Additional Termination
Event. If any “Additional Termination Event” is specified in the Schedule or any Confirmation as applying, the occurrence of such event (and, in such event, the Affected Party or Affected Parties shall be as specified for such
Additional Termination Event in the Schedule or such Confirmation). 
 (c) Event of Default and Illegality. If an event or
circumstance which would otherwise constitute or give rise to an Event of Default also constitutes an Illegality, it will be treated as an Illegality and will not constitute an Event of Default. 

 

	6.	Early Termination 

 (a) Right to
Terminate Following Event of Default. If at any time an Event of Default with respect to a party (the “Defaulting Party”) has occurred and is then continuing, the other party (the “Non-defaulting Party”) may, by not more
than 20 days notice to the Defaulting Party specifying the relevant Event of Default, designate a day not earlier than the day such notice is effective as an Early Termination Date in respect of all outstanding Transactions. If, however,
“Automatic Early Termination” is specified in the Schedule as applying to a party, then an Early Termination Date in respect of all outstanding Transactions will occur immediately upon the occurrence with respect to such party of an Event
of Default specified in Section 5(a)(vii)(1), (3), (5), (6) or, to the extent analogous thereto, (8), and as of the time immediately preceding the institution of the relevant proceeding or the presentation of the relevant petition upon the
occurrence with respect to such party of an Event of Default specified in Section 5(a)(vii)(4) or, to the extent analogous thereto, (8). 

(b) Right to Terminate Following Termination Event. 
 (i) Notice. If a Termination Event occurs, an Affected Party will, promptly upon becoming aware of it, notify the other party, specifying the nature of that Termination Event and each
Affected Transaction and will also give such other information about that Termination Event as the other party may reasonably require. 
 (ii) Transfer to Avoid Termination Event. If either an Illegality under Section 5(b)(i)(1) or a Tax Event occurs and there is only one Affected Party, or if a Tax Event Upon Merger
occurs and the Burdened Party is the Affected Party, the Affected Party will, as a condition to its right to designate an Early Termination Date under Section 6(b)(iv), use all reasonable efforts (which will not require such party to incur a
loss, excluding immaterial, incidental expenses) to transfer within 20 days after it gives notice under Section 6(b)(i) all its rights and obligations under this Agreement in respect of the Affected Transactions to another of its Offices or
Affiliates so that such Termination Event ceases to exist. 

  

					
		  	10	  	Issuer Master

 If the Affected Party is not able to make such a transfer it will give notice to the other
party to that effect within such 20 day period, whereupon the other party may effect such a transfer within 30 days after the notice is given under Section 6(b)(i). 
 Any such transfer by a party under this Section 6(b)(ii) will be subject to and conditional upon the prior written consent of the other party, which consent will not be withheld if such other
party’s policies in effect at such time would permit it to enter into transactions with the transferee on the terms proposed. 
 (iii) Two Affected Parties. If an Illegality under Section 5(b)(i)(1) or a Tax Event occurs and there are two Affected Parties, each party will use all reasonable efforts to reach
agreement within 30 days after notice thereof is given under Section 6(b)(i) on action to avoid that Termination Event. 

(iv) Right to Terminate. If: 
 (1) a transfer under Section 6(b)(ii) or an agreement under Section 6(b)(iii), as the case may be, has not been effected with respect to all Affected Transactions within 30 days after an
Affected Party gives notice under Section 6(b)(i); or 
 (2) an Illegality under Section 5(b)(i)(2), a Credit Event
Upon Merger or an Additional Termination Event occurs, or a Tax Event Upon Merger occurs and the Burdened Party is not the Affected Party, 
 either party in the case of an Illegality, the Burdened Party in the case of a Tax Event Upon Merger, any Affected Party in the case of a Tax Event or an Additional Termination Event if there is more than
one Affected Party, or the party which is not the Affected Party in the case of a Credit Event Upon Merger or an Additional Termination Event if there is only one Affected Party may, by not more than 20 days notice to the other party and provided
that the relevant Termination Event is then continuing, designate a day not earlier than the day such notice is effective as an Early Termination Date in respect of all Affected Transactions. 
 (c) Effect of Designation. 
 (i) If notice designating an Early
Termination Date is given under Section 6(a) or (b), the Early Termination Date will occur on the date so designated, whether or not the relevant Event of Default or Termination Event is then continuing. 

(ii) Upon the occurrence or effective designation of an Early Termination Date, no further payments or deliveries under
Section 2(a)(i) or 2(e) in respect of the Terminated Transactions will be required to be made, but without prejudice to the other provisions of this Agreement. The amount, if any, payable in respect of an Early Termination Date shall be
determined pursuant to Section 6(e). 
 (d) Calculations. 

(i) Statement. On or as soon as reasonably practicable following the occurrence of an Early Termination Date, each party
will make the calculations on its part, if any, 

  

					
		  	11	  	Issuer Master

 
contemplated by Section 6(e) and will provide to the other party a statement (1) showing, in reasonable detail, such calculations (including all relevant quotations and specifying any
amount payable under Section 6(e)) and (2) giving details of the relevant account to which any amount payable to it is to be paid. In the absence of written confirmation from the source of a quotation obtained in determining a Market
Quotation, the records of the party obtaining such quotation will be conclusive evidence of the existence and accuracy of such quotation. 
 (ii) Payment Date. An amount calculated as being due in respect of any Early Termination Date under Section 6(e) will be payable on the day that notice of the amount payable is
effective (in the case of an Early Termination Date which is designated or occurs as a result of an Event of Default) and on the day which is two Local Business Days after the day on which notice of the amount payable is effective (in the case of an
Early Termination Date which is designated as a result of a Termination Event). Such amount will be paid together with (to the extent permitted under applicable law) interest thereon (before as well as after judgment) in the Termination Currency,
from (and including) the relevant Early Termination Date to (but excluding) the date such amount is paid, at the Applicable Rate. Such interest will be calculated on the basis of daily compounding and the actual number of days elapsed. 

(e) Payments on Early Termination. If an Early Termination Date occurs, the following provisions shall apply based on the parties’
election in the Schedule of a payment measure, either “Market Quotation” or “Loss”, and a payment method, either the “First Method” or the “Second Method”. If the parties fail to designate a payment measure or
payment method in the Schedule, it will be deemed that “Market Quotation” or the “Second Method”, as the case may be, shall apply. The amount, if any, payable in respect of an Early Termination Date and determined pursuant to
this Section will be subject to any Set-off. 
 (i) Events of Default. If the Early Termination Date results from
an Event of Default: 
 (1) First Method and Market Quotation. If the First Method and Market Quotation apply, the
Defaulting Party will pay to the Non-defaulting Party the excess, if a positive number, of (A) the sum of the Settlement Amount (determined by the Non-defaulting Party) in respect of the Terminated Transactions and the Termination Currency
Equivalent of the Unpaid Amounts owing to the Non-defaulting Party over (B) the Termination Currency Equivalent of the Unpaid Amounts owing to the Defaulting Party. 
 (2) First Method and Loss. If the First Method and Loss apply, the Defaulting Party will pay to the Non-defaulting Party, if a positive number, the Non-defaulting Party’s Loss in respect of
this Agreement. 
 (3) Second Method and Market Quotation. If the Second Method and Market Quotation apply, an amount will
be payable equal to (A) the sum of the Settlement Amount (determined by the Non-defaulting Party) in respect of the Terminated Transactions and the Termination Currency Equivalent of the Unpaid

  

					
		  	12	  	Issuer Master

 
Amounts owing to the Non-defaulting Party less (B) the Termination Currency Equivalent of the Unpaid Amounts owing to the Defaulting Party. If that amount is a positive number, the
Defaulting Party will pay it to the Non-defaulting Party; if it is a negative number, the Non-defaulting Party will pay the absolute value of that amount to the Defaulting Party. 

(4) Second Method and Loss. If the Second Method and Loss apply, an amount will be payable equal to the Non-defaulting Party’s
Loss in respect of this Agreement. If that amount is a positive number, the Defaulting Party will pay it to the Non-defaulting Party; if it is a negative number, the Non-defaulting Party will pay the absolute value of that amount to the Defaulting
Party. 
 (ii) Termination Events. If the Early Termination Date results from a Termination Event: 

(1) One Affected Party. If there is one Affected Party, the amount payable will be determined in accordance with
Section 6(e)(i)(3), if Market Quotation applies, or Section 6(e)(i)(4), if Loss applies, except that, in either case, references to the Defaulting Party and to the Non-defaulting Party will be deemed to be references to the Affected Party
and the party which is not the Affected Party, respectively, and, if Loss applies and fewer than all the Transactions are being terminated, Loss shall be calculated in respect of all Terminated Transactions. 

(2) Two Affected Parties. If there are two Affected Parties: 

(A) if Market Quotation applies, each party will determine a Settlement Amount in respect of the Terminated Transactions, and an amount
will be payable equal to (I) the sum of (a) one-half of the difference between the Settlement Amount of the party with the higher Settlement Amount (“X”) and the Settlement Amount of the party with the lower Settlement Amount
(“Y”) and (b) the Termination Currency Equivalent of the Unpaid Amounts owing to X less (II) the Termination Currency Equivalent of the Unpaid Amounts owing to Y; and 

(B) if Loss applies, each party will determine its Loss in respect of this Agreement (or, if fewer than all the Transactions are being
terminated, in respect of all Terminated Transactions) and an amount will be payable equal to one-half of the difference between the Loss of the party with the higher Loss (“X”) and the Loss of the party with the lower Loss
(“Y”). 
 If the amount payable is a positive number, Y will pay it to X; if it is a negative number, X will pay the absolute value of
that amount to Y. 
 (iii) Adjustment for Bankruptcy. In circumstances where an Early Termination Date occurs
because “Automatic Early Termination” applies in respect of a party, the amount determined under this Section 6(e) will be subject to such adjustments as are appropriate and permitted by law to reflect any payments or deliveries made
by one party to the other under this Agreement (and retained by such other party) during the period from the relevant Early Termination Date to the date for payment determined under Section 6(d)(ii). 

  

					
		  	13	  	Issuer Master

 (iv) Pre-Estimate. The parties agree that if Market Quotation applies an
amount recoverable under this Section 6(e) is a reasonable pre-estimate of loss and not a penalty. Such amount is payable for the loss of bargain and the loss of protection against future risks and except as otherwise provided in this Agreement
neither party will be entitled to recover any additional damages as a consequence of such losses. 
  

	7.	Transfer 

 Subject to
Section 6(b)(ii), neither this Agreement nor any interest or obligation in or under this Agreement may be transferred (whether by way of security or otherwise) by either party without the prior written consent of the other party, except that:

 (a) a party may make such a transfer of this Agreement pursuant to a consolidation or amalgamation with, or merger with or into, or transfer
of all or substantially all its assets to, another entity (but without prejudice to any other right or remedy under this Agreement); and 
 (b)
a party may make such a transfer of all or any part of its interest in any amount payable to it from a Defaulting Party under Section 6(e). 
 Any purported transfer that is not in compliance with this Section will be void. 
  

	8.	Contractual Currency 

 (a) Payment
in the Contractual Currency. Each payment under this Agreement will be made in the relevant currency specified in this Agreement for that payment (the “Contractual Currency”). To the extent permitted by applicable law, any
obligation to make payments under this Agreement in the Contractual Currency will not be discharged or satisfied by any tender in any currency other than the Contractual Currency, except to the extent such tender results in the actual receipt by the
party to which payment is owed, acting in a reasonable manner and in good faith in converting the currency so tendered into the Contractual Currency, of the full amount in the Contractual Currency of all amounts payable in respect of this Agreement.
If for any reason the amount in the Contractual Currency so received falls short of the amount in the Contractual Currency payable in respect of this Agreement, the party required to make the payment will, to the extent permitted by applicable law,
immediately pay such additional amount in the Contractual Currency as may be necessary to compensate for the shortfall. If for any reason the amount in the Contractual Currency so received exceeds the amount in the Contractual Currency payable in
respect of this Agreement, the party receiving the payment will refund promptly the amount of such excess. 
 (b) Judgments. To
the extent permitted by applicable law, if any judgment or order expressed in a currency other than the Contractual Currency is rendered (i) for the payment of any amount owing in respect of this Agreement, (ii) for the payment of any
amount relating to any early termination in respect of this Agreement or (iii) in respect of a judgment or order of another court for the payment of any amount described in (i) or (ii) above, the party seeking recovery, after recovery
in full of the aggregate amount to which such party is entitled pursuant 

  

					
		  	14	  	Issuer Master

 
to the judgment or order, will be entitled to receive immediately from the other party the amount of any shortfall of the Contractual Currency received by such party as a consequence of sums paid
in such other currency and will refund promptly to the other party any excess of the Contractual Currency received by such party as a consequence of sums paid in such other currency if such shortfall or such excess arises or results from any
variation between the rate of exchange at which the Contractual Currency is converted into the currency of the judgment or order for the purposes of such judgment or order and the rate of exchange at which such party is able, acting in a reasonable
manner and in good faith in converting the currency received into the Contractual Currency, to purchase the Contractual Currency with the amount of the currency of the judgment or order actually received by such party. The term “rate of
exchange” includes, without limitation, any premiums and costs of exchange payable in connection with the purchase of or conversion into the Contractual Currency. 
 (c) Separate Indemnities. To the extent permitted by applicable law, these indemnities constitute separate and independent obligations from the other obligations in this Agreement, will be
enforceable as separate and independent causes of action, will apply notwithstanding any indulgence granted by the party to which any payment is owed and will not be affected by judgment being obtained or claim or proof being made for any other sums
payable in respect of this Agreement. 
 (d) Evidence of Loss. For the purpose of this Section 8, it will be sufficient for a
party to demonstrate that it would have suffered a loss had an actual exchange or purchase been made. 
  

	9.	Miscellaneous 

 (a) Entire
Agreement. This Agreement constitutes the entire agreement and understanding of the parties with respect to its subject matter and supersedes all oral communication and prior writings with respect thereto. 

(b) Amendments. No amendment, modification or waiver in respect of this Agreement will be effective unless in writing (including a writing
evidenced by a facsimile transmission) and executed by each of the parties or confirmed by an exchange of telexes or electronic messages on an electronic messaging system. 
 (c) Survival of Obligations. Without prejudice to Sections 2(a)(iii) and 6(c)(ii), the obligations of the parties under this Agreement will survive the termination of any Transaction.

 (d) Remedies Cumulative. Except as provided in this Agreement, the rights, powers, remedies and privileges provided in this
Agreement are cumulative and not exclusive of any rights, powers, remedies and privileges provided by law. 
 (e) Counterparts and
Confirmations. 
 (i) This Agreement (and each amendment, modification and waiver in respect of it) may be executed and
delivered in counterparts (including by facsimile transmission), each of which will be deemed an original. 

  

					
		  	15	  	Issuer Master

 (ii) The parties intend that they are legally bound by the terms of each Transaction from
the moment they agree to those terms (whether orally or otherwise). A Confirmation shall be entered into as soon as practicable and may be executed and delivered in counterparts (including by facsimile transmission) or be created by an exchange of
telexes or by an exchange of electronic messages on an electronic messaging system, which in each case will be sufficient for all purposes to evidence a binding supplement to this Agreement. The parties will specify therein or through another
effective means that any such counterpart, telex or electronic message constitutes a Confirmation. 
 (f) No Waiver of Rights. A
failure or delay in exercising any right, power or privilege in respect of this Agreement will not be presumed to operate as a waiver, and a single or partial exercise of any right, power or privilege will not be presumed to preclude any subsequent
or further exercise, of that right, power or privilege or the exercise of any other right, power or privilege. 
 (g) Headings.
The headings used in this Agreement are for convenience of reference only and are not to affect the construction of or to be taken into consideration in interpreting this Agreement. 

 

	10.	Offices; Multibranch Parties 

 (a) If
Section 10(a) is specified in the Schedule as applying, each party that enters into a Transaction through an Office other than its head or home office represents to the other party that, notwithstanding the place of booking office or
jurisdiction of incorporation or organisation of such party, the obligations of such party are the same as if it had entered into the Transaction through its head or home office. This representation will be deemed to be repeated by such party on
each date on which a Transaction is entered into. 
 (b) Neither party may change the Office through which it makes and receives payments or
deliveries for the purpose of a Transaction without the prior written consent of the other party. 
 (c) If a party is specified as a
Multibranch Party in the Schedule, such Multibranch Party may make and receive payments or deliveries under any Transaction through any Office listed in the Schedule, and the Office through which it makes and receives payments or deliveries with
respect to a Transaction will be specified in the relevant Confirmation. 
  

	11.	Expenses 

 A Defaulting Party will, on
demand, indemnify and hold harmless the other party for and against all reasonable out-of-pocket expenses, including legal fees and Stamp Tax, incurred by such other party by reason of the enforcement and protection of its rights under this
Agreement or any Credit Support Document to which the Defaulting Party is a party or by reason of the early termination of any Transaction, including, but not limited to, costs of collection. 

  

					
		  	16	  	Issuer Master

	12.	Notices 

 (a) Effectiveness.
Any notice or other communication in respect of this Agreement may be given in any manner set forth below (except that a notice or other communication under Section 5 or 6 may not be given by facsimile transmission or electronic messaging
system) to the address or number or in accordance with the electronic messaging system details provided (see the Schedule) and will be deemed effective as indicated: 
 (i) if in writing and delivered in person or by courier, on the date it is delivered; 
 (ii) if sent by telex, on the date the recipient’s answerback is received; 

(iii) if sent by facsimile transmission, on the date that transmission is received by a responsible employee of the recipient in legible
form (it being agreed that the burden of proving receipt will be on the sender and will not be met by a transmission report generated by the sender’s facsimile machine); 
 (iv) if sent by certified or registered mail (airmail, if overseas) or the equivalent (return receipt requested), on the date that mail is delivered or its delivery is attempted; or 

(v) if sent by electronic messaging system, on the date that electronic message is received, 

unless the date of that delivery (or attempted delivery) or that receipt, as applicable, is not a Local Business Day or that communication is delivered
(or attempted) or received, as applicable, after the close of business on a Local Business Day, in which case that communication shall be deemed given and effective on the first following day that is a Local Business Day. 

(b) Change of Addresses. Either party may by notice to the other change the address, telex or facsimile number or electronic messaging
system details at which notices or other communications are to be given to it. 
  

	13.	Governing Law and Jurisdiction 

 (a)
Governing Law. This Agreement will be governed by and construed in accordance with the law specified in the Schedule. 
 (b)
Jurisdiction. With respect to any suit, action or proceedings relating to this Agreement (“Proceedings”), each party irrevocably: 
 (i) submits to the jurisdiction of the English courts, if this Agreement is expressed to be governed by English law, or to the non-exclusive jurisdiction of the courts of the State of New York and the
United States District Court located in the Borough of Manhattan in New York City, if this Agreement is expressed to be governed by the laws of the State of New York; and 
 (ii) waives any objection which it may have at any time to the laying of venue of any Proceedings brought in any such court, waives any claim that such Proceedings have been brought in an inconvenient
forum and further waives the right to object, with respect to such Proceedings, that such court does not have any jurisdiction over such party. 

  

					
		  	17	  	Issuer Master

 Nothing in this Agreement precludes either party from bringing Proceedings in any other jurisdiction
(outside, if this Agreement is expressed to be governed by English law, the Contracting States, as defined in Section 1(3) of the Civil Jurisdiction and Judgments Act 1982 or any modification, extension or re-enactment thereof for the time
being in force) nor will the bringing of Proceedings in any one or more jurisdictions preclude the bringing of Proceedings in any other jurisdiction. 
 (c) Service of Process. Each party irrevocably appoints the Process Agent (if any) specified opposite its name in the Schedule to receive, for it and on its behalf, service of process in any
Proceedings. If for any reason any party’s Process Agent is unable to act as such, such party will promptly notify the other party and within 30 days appoint a substitute process agent acceptable to the other party. The parties irrevocably
consent to service of process given in the manner provided for notices in Section 12. Nothing in this Agreement will affect the right of either party to serve process in any other manner permitted by law. 

(d) Waiver of Immunities. Each party irrevocably waives, to the fullest extent permitted by applicable law, with respect to itself and its
revenues and assets (irrespective of their use or intended use), all immunity on the grounds of sovereignty or other similar grounds from (i) suit, (ii) jurisdiction of any court, (iii) relief by way of injunction, order for specific
performance or for recovery of property, (iv) attachment of its assets (whether before or after judgment) and (v) execution or enforcement of any judgment to which it or its revenues or assets might otherwise be entitled in any Proceedings
in the courts of any jurisdiction and irrevocably agrees, to the extent permitted by applicable law, that it will not claim any such immunity in any Proceedings. 
  

	14.	Definitions 

 As used in this Agreement:

 “Additional Termination Event” has the meaning specified in Section 5(b). 

“Affected Party” has the meaning specified in Section 5(b). 
 “Affected Transactions” means (a) with respect to any Termination Event consisting of an Illegality, Tax Event or Tax Event Upon Merger, all Transactions affected by the
occurrence of such Termination Event and (b) with respect to any other Termination Event, all Transactions. 

“Affiliate” means, subject to the Schedule, in relation to any person, any entity controlled, directly or indirectly, by the
person, any entity that controls, directly or indirectly, the person or any entity directly or indirectly under common control with the person. For this purpose, “control” of any entity or person means ownership of a majority of the voting
power of the entity or person. 

  

					
		  	18	  	Issuer Master

 “Applicable Rate” means: 
 (a) in respect of obligations payable or deliverable (or which would have been but for Section 2(a)(iii)) by a Defaulting Party, the Default Rate; 

(b) in respect of an obligation to pay an amount under Section 6(e) of either party from and after the date (determined in accordance with
Section 6(d)(ii)) on which that amount is payable, the Default Rate; 
 (c) in respect of all other obligations payable or deliverable (or
which would have been but for Section 2(a)(iii)) by a Non-defaulting Party, the Non-default Rate; and 
 (d) in all other cases, the
Termination Rate. 
 “Burdened Party” has the meaning specified in Section 5(b). 

“Change in Tax Law” means the enactment, promulgation, execution or ratification of, or any change in or amendment to, any law
(or in the application or official interpretation of any law) that occurs on or after the date on which the relevant Transaction is entered into. 
 “consent” includes a consent, approval, action, authorisation, exemption, notice, filing, registration or exchange control consent. 

“Credit Event Upon Merger” has the meaning specified in Section 5(b). 

“Credit Support Document” means any agreement or instrument that is specified as such in this Agreement. 

“Credit Support Provider” has the meaning specified in the Schedule. 
 “Default Rate” means a rate per annum equal to the cost (without proof or evidence of any actual cost) to the relevant payee (as certified by it) if it were to fund or of funding
the relevant amount plus 1% per annum. 
 “Defaulting Party” has the meaning specified in Section 6(a).

 “Early Termination Date” means the date determined in accordance with Section 6(a) or 6(b)(iv). 

“Event of Default” has the meaning specified in Section 5(a) and, if applicable, in the Schedule. 

“Illegality” has the meaning specified in Section 5(b). 
 “Indemnifiable Tax” means any Tax other than a Tax that would not be imposed in respect of a payment under this Agreement but for a present or former connection between the
jurisdiction of the government or taxation authority imposing such Tax and the recipient of such payment or a person related to such recipient (including, without limitation, a connection arising from such recipient or related person being or having
been a citizen or resident of such jurisdiction, or being or having been organised, present or engaged in a trade or business in such jurisdiction, or having or having had a permanent establishment or fixed place of business in such jurisdiction,

  

					
		  	19	  	Issuer Master

 
but excluding a connection arising solely from such recipient or related person having executed, delivered, performed its obligations or received a payment under, or enforced, this Agreement or a
Credit Support Document). 
 “law” includes any treaty, law, rule or regulation (as modified, in the case of tax
matters, by the practice of any relevant governmental revenue authority) and “lawful” and “unlawful” will be construed accordingly. 
 “Local Business Day” means, subject to the Schedule, a day on which commercial banks are open for business (including dealings in foreign exchange and foreign currency deposits)
(a) in relation to any obligation under Section 2(a)(i), in the place(s) specified in the relevant Confirmation or, if not so specified, as otherwise agreed by the parties in writing or determined pursuant to provisions contained, or
incorporated by reference, in this Agreement, (b) in relation to any other payment, in the place where the relevant account is located and, if different, in the principal financial centre, if any, of the currency of such payment, (c) in
relation to any notice or other communication, including notice contemplated under Section 5(a)(i), in the city specified in the address for notice provided by the recipient and, in the case of a notice contemplated by Section 2(b), in the
place where the relevant new account is to be located and (d) in relation to Section 5(a)(v)(2), in the relevant locations for performance with respect to such Specified Transaction. 

“Loss” means, with respect to this Agreement or one or more Terminated Transactions, as the case may be, and a party, the
Termination Currency Equivalent of an amount that party reasonably determines in good faith to be its total losses and costs (or gain, in which case expressed as a negative number) in connection with this Agreement or that Terminated Transaction or
group of Terminated Transactions, as the case may be, including any loss of bargain, cost of funding or, at the election of such party but without duplication, loss or cost incurred as a result of its terminating, liquidating, obtaining or
reestablishing any hedge or related trading position (or any gain resulting from any of them). Loss includes losses and costs (or gains) in respect of any payment or delivery required to have been made (assuming satisfaction of each applicable
condition precedent) on or before the relevant Early Termination Date and not made, except, so as to avoid duplication, if Section 6(e)(i)(1) or (3) or 6(e)(ii)(2)(A) applies. Loss does not include a party’s legal fees and
out-of-pocket expenses referred to under Section 11. A party will determine its Loss as of the relevant Early Termination Date, or, if that is not reasonably practicable, as of the earliest date thereafter as is reasonably practicable. A party
may (but need not) determine its Loss by reference to quotations of relevant rates or prices from one or more leading dealers in the relevant markets. 
 “Market Quotation” means, with respect to one or more Terminated Transactions and a party making the determination, an amount determined on the basis of quotations from Reference
Market-makers. Each quotation will be for an amount, if any, that would be paid to such party (expressed as a negative number) or by such party (expressed as a positive number) in consideration of an agreement between such party (taking into account
any existing Credit Support Document with respect to the obligations of such party) and the quoting Reference Market-maker to enter into a transaction (the “Replacement Transaction”) that would have the effect of preserving for such party
the economic equivalent of any payment or delivery (whether the underlying obligation was absolute or contingent and assuming the satisfaction of each 

  

					
		  	20	  	Issuer Master

 
applicable condition precedent) by the parties under Section 2(a)(i) in respect of such Terminated Transaction or group of Terminated Transactions that would, but for the occurrence of the
relevant Early Termination Date, have been required after that date. For this purpose, Unpaid Amounts in respect of the Terminated Transaction or group of Terminated Transactions are to be excluded but, without limitation, any payment or delivery
that would, but for the relevant Early Termination Date, have been required (assuming satisfaction of each applicable condition precedent) after that Early Termination Date is to be included. The Replacement Transaction would be subject to such
documentation as such party and the Reference Market-maker may, in good faith, agree. The party making the determination (or its agent) will request each Reference Market-maker to provide its quotation to the extent reasonably practicable as of the
same day and time (without regard to different time zones) on or as soon as reasonably practicable after the relevant Early Termination Date. The day and time as of which those quotations are to be obtained will be selected in good faith by the
party obliged to make a determination under Section 6(e), and, if each party is so obliged, after consultation with the other. If more than three quotations are provided, the Market Quotation will be the arithmetic mean of the quotations,
without regard to the quotations having the highest and lowest values. If exactly three such quotations are provided, the Market Quotation will be the quotation remaining after disregarding the highest and lowest quotations. For this purpose, if
more than one quotation has the same highest value or lowest value, then one of such quotations shall be disregarded. If fewer than three quotations are provided, it will be deemed that the Market Quotation in respect of such Terminated Transaction
or group of Terminated Transactions cannot be determined. 
 “Non-default Rate” means a rate per annum equal to the cost
(without proof or evidence of any actual cost) to the Non-defaulting Party (as certified by it) if it were to fund the relevant amount. 

“Non-defaulting Party” has the meaning specified in Section 6(a). 
 “Office” means a branch or office of a party, which may be such party’s head or home office. 
 “Potential Event of Default” means any event which, with the giving of notice or the lapse of time or both, would constitute an Event of Default. 

“Reference Market-makers” means four leading dealers in the relevant market selected by the party determining a Market Quotation
in good faith (a) from among dealers of the highest credit standing which satisfy all the criteria that such party applies generally at the time in deciding whether to offer or to make an extension of credit and (b) to the extent
practicable, from among such dealers having an office in the same city. 
 “Relevant Jurisdiction” means, with respect
to a party, the jurisdictions (a) in which the party is incorporated, organised, managed and controlled or considered to have its seat, (b) where an Office through which the party is acting for purposes of this Agreement is located,
(c) in which the party executes this Agreement and (d) in relation to any payment, from or through which such payment is made. 

“Scheduled Payment Date” means a date on which a payment or delivery is to be made under Section 2(a)(i) with respect to a
Transaction. 

  

					
		  	21	  	Issuer Master

 “Set-off” means set-off, offset, combination of accounts, right of retention or
withholding or similar right or requirement to which the payer of an amount under Section 6 is entitled or subject (whether arising under this Agreement, another contract, applicable law or otherwise) that is exercised by, or imposed on, such
payer. 
 “Settlement Amount” means, with respect to a party and any Early Termination Date, the sum of: 

(a) the Termination Currency Equivalent of the Market Quotations (whether positive or negative) for each Terminated Transaction or group of Terminated
Transactions for which a Market Quotation is determined; and 
 (b) such party’s Loss (whether positive or negative and without reference
to any Unpaid Amounts) for each Terminated Transaction or group of Terminated Transactions for which a Market Quotation cannot be determined or would not (in the reasonable belief of the party making the determination) produce a commercially
reasonable result. 
 “Specified Entity” has the meaning specified in the Schedule. 

“Specified Indebtedness” means, subject to the Schedule, any obligation (whether present or future, contingent or otherwise, as
principal or surety or otherwise) in respect of borrowed money. 
 “Specified Transaction” means, subject to the
Schedule, (a) any transaction (including an agreement with respect thereto) now existing or hereafter entered into between one party to this Agreement (or any Credit Support Provider of such party or any applicable Specified Entity of such
party) and the other party to this Agreement (or any Credit Support Provider of such other party or any applicable Specified Entity of such other party) which is a rate swap transaction, basis swap, forward rate transaction, commodity swap,
commodity option, equity or equity index swap, equity or equity index option, bond option, interest rate option, foreign exchange transaction, cap transaction, floor transaction, collar transaction, currency swap transaction, cross-currency rate
swap transaction, currency option or any other similar transaction (including any option with respect to any of these transactions), (b) any combination of these transactions and (c) any other transaction identified as a Specified
Transaction in this Agreement or the relevant confirmation. 
 “Stamp Tax” means any stamp, registration, documentation
or similar tax. 
 “Tax” means any present or future tax, levy, impost, duty, charge, assessment or fee of any nature
(including interest, penalties and additions thereto) that is imposed by any government or other taxing authority in respect of any payment under this Agreement other than a stamp, registration, documentation or similar tax. 

“Tax Event” has the meaning specified in Section 5(b). 
 “Tax Event Upon Merger” has the meaning specified in Section 5(b). 

  

					
		  	22	  	Issuer Master

 “Terminated Transactions” means with respect to any Early Termination Date
(a) if resulting from a Termination Event, all Affected Transactions and (b) if resulting from an Event of Default, all Transactions (in either case) in effect immediately before the effectiveness of the notice designating that Early
Termination Date (or, if “Automatic Early Termination” applies, immediately before that Early Termination Date). 

“Termination Currency” has the meaning specified in the Schedule. 
 “Termination Currency Equivalent” means, in respect of any amount denominated in the Termination Currency, such Termination Currency amount and, in respect of any amount
denominated in a currency other than the Termination Currency (the “Other Currency”), the amount in the Termination Currency determined by the party making the relevant determination as being required to purchase such amount of such Other
Currency as at the relevant Early Termination Date, or, if the relevant Market Quotation or Loss (as the case may be), is determined as of a later date, that later date, with the Termination Currency at the rate equal to the spot exchange rate of
the foreign exchange agent (selected as provided below) for the purchase of such Other Currency with the Termination Currency at or about 11:00 a.m. (in the city in which such foreign exchange agent is located) on such date as would be customary for
the determination of such a rate for the purchase of such Other Currency for value on the relevant Early Termination Date or that later date. The foreign exchange agent will, if only one party is obliged to make a determination under
Section 6(e), be selected in good faith by that party and otherwise will be agreed by the parties. 
 “Termination
Event” means an Illegality, a Tax Event or a Tax Event Upon Merger or, if specified to be applicable, a Credit Event Upon Merger or an Additional Termination Event. 
 “Termination Rate” means a rate per annum equal to the arithmetic mean of the cost (without proof or evidence of any actual cost) to each party (as certified by such party) if it
were to fund or of funding such amounts. 
 “Unpaid Amounts” owing to any party means, with respect to an Early
Termination Date, the aggregate of (a) in respect of all Terminated Transactions, the amounts that became payable (or that would have become payable but for Section 2(a)(iii)) to such party under Section 2(a)(i) on or prior to such
Early Termination Date and which remain unpaid as at such Early Termination Date and (b) in respect of each Terminated Transaction, for each obligation under Section 2(a)(i) which was (or would have been but for Section 2(a)(iii))
required to be settled by delivery to such party on or prior to such Early Termination Date and which has not been so settled as at such Early Termination Date, an amount equal to the fair market value of that which was (or would have been) required
to be delivered as of the originally scheduled date for delivery, in each case together with (to the extent permitted under applicable law) interest, in the currency of such amounts, from (and including) the date such amounts or obligations were or
would have been required to have been paid or performed to (but excluding) such Early Termination Date, at the Applicable Rate. Such amounts of interest will be calculated on the basis of daily compounding and the actual number of days elapsed. The
fair market value of any obligation referred to in clause (b) above shall be reasonably determined by the party obliged to make the determination under Section 6(e) or, if each party is so obliged, it shall be the average of the
Termination Currency Equivalents of the fair market values reasonably determined by both parties. 

  

					
		  	23	  	Issuer Master

 IN WITNESS WHEREOF the parties have executed this document on the respective dates specified below with
effect from the date specified on the first page of this document. 
  

											
	  
	 		 	NISSAN MASTER OWNER TRUST RECEIVABLES
				
		 		 		 	 By: [WILMINGTON TRUST COMPANY],
 not in its individual capacity but solely as Owner Trustee

						
	By:	 	  
	 		 		 	By:	 	  

	Name:	 	  
	 		 		 	Name:	 	  

	Title:	 	  
	 		 		 	Title:	 	  

	Date:	 	  
	 		 		 	Date:	 	  

  

					
		  	24	  	Issuer Master

 ISDA 
 International Swap Dealers Association, Inc. 
 SCHEDULE 

to the 
 Master
Agreement 
 dated as of
[                    ] 

between 
  

 
 (“Party
A”) 
 and 
 NISSAN MASTER OWNER TRUST RECEIVABLES 
 (“Party B”) 

Part 1. Termination Provisions. 
  

	(a)	The following shall apply: 

 (i)
Termination by Party A - Events of Default. Notwithstanding the provisions of Section 5(a), the only events which will constitute Events of Default when they occur in relation to Party B will be those events specified in Sections 5(a)(i)
(Failure To Pay Or Deliver) and Section 5(a)(vii) (Bankruptcy); provided that with respect to Party B the provisions of Section 5(a)(vii) clauses (2), (7) and (9) will not be applicable as an Event of Default; clause
(3) will not apply to Party B to the extent it refers to any assignment, arrangement or composition that is effected by or pursuant to the Indenture; clause (4) will not apply to Party B to the extent that it refers to proceedings or
petitions instituted or presented by Party A or any of its Affiliates; clause(6) will not apply to Party B to the extent that it refers to (i) any appointment that is contemplated or effected by the Indenture (as defined herein) or
(ii) any appointment that Party B has not become subject to); clause (8) will not apply to Party B to the extent that it applies to Section 5(a)(vii)(2), (4), (6), and (7) (except to the extent that such provisions are not
disapplied with respect to Party B). 
 Accordingly, Section 5(a)(ii) (Breach Of Agreement), Section 5(a)(iii) (Credit
Support Default), Section 5(a)(iv) (Misrepresentation), Section 5(a)(v) (Default Under Specified Transaction), Section 5(a)(vi) (Cross Default), and the provisions of Section 5(a)(viii) (Merger Without Assumption) will not apply
to Party B as the Defaulting Party. 
 Notwithstanding the foregoing, the Credit Support Default provisions of
Section 5(a)(iii)(1) will apply to Party B solely in respect of Party B’s obligations under paragraph 3(b) of the Credit Support Annex. 

  

					
		  		  	Issuer Swap Schedule

 (ii) Termination by Party A - Termination Events. Notwithstanding the provisions of
Section 5(b), and save as otherwise provided herein, the only events which will constitute Termination Events when they occur in relation to Party A: (x) as the Affected Party, shall be Section 5(b)(i) (Illegality), (y) as
Burdened Party, shall be Section 5(b)(iii) (Tax Event Upon Merger); provided that Party A shall not be entitled to designate an Early Termination Date by reason of a Tax Event Upon Merger in respect of which it is the Affected
Party, (z) as the Non-affected Party, shall be Section 5(b)(v) (Additional Termination Event). Accordingly, Section 5(b)(iv) (Credit Event Upon Merger) will not be a Termination Event with respect to Party B as the Affected Party and
Party A may not designate an Early Termination Date related to Section 5(b)(ii) (Tax Event). 
 (iii) Termination by
Party B - Events of Default and Termination Events. Save as otherwise provided herein, the provisions of Section 5 will apply with respect to Party A without amendment. For purposes of Section 5(a)(vi) (Cross Default), the
Threshold Amount applicable to Party A shall be 3% of Shareholders equity (excluding deposits). 
  

	(b)	Specified Entity. None specified in relation to either Party A or Party B. 

 

	(c)	“Specified Transaction” will have the meaning specified in Section 14 of this Agreement. 

 

	(d)	The “Automatic Early Termination” provision of Section 6(a) of this Agreement will not apply to Party A and will not apply to Party B.

  

	(e)	Payments on Early Termination. For the purpose of Section 6(e) of this Agreement: 

Market Quotation will apply and the Second Method will apply; provided, however, with respect to an early termination in
which Party A is the Defaulting Party or sole Affected Party in respect of an Additional Termination Event or Tax Event Upon Merger, notwithstanding Section 6 of this Agreement, the following amendment to this Agreement set forth in paragraphs
(i) to (v) below shall apply: 
 (i) The definition of “Market Quotation” shall be deleted in its entirety
and replaced with the following: 
 “Market Quotation” means, with respect to one or more Terminated
Transactions, a Firm Offer which is (1) made by a Reference Market-maker that is an Eligible Replacement with Rated Debt, (2) for an amount that would be paid to Party B (expressed as a negative number) or by Party B (expressed as a
positive number) in consideration of an agreement between Party B and such Reference Market-maker to enter into a transaction (the “Replacement Transaction”) that would have the effect of preserving for such party the economic
equivalent of any payment or delivery (whether the underlying obligation was absolute or contingent and assuming the satisfaction of each applicable condition precedent) by the parties under Section 2(a)(i) in respect of such Terminated
Transactions or group of Terminated Transactions that would, but for the occurrence of the relevant Early Termination Date, have been required after that Date, (3) made on the basis that Unpaid Amounts in respect of the Terminated Transaction
or group of Transactions are to be excluded but, without limitation, any payment or delivery that would, but for the relevant Early Termination Date, have been required (assuming satisfaction of each applicable condition precedent) after that Early
Termination Date is to be included and (4) made in respect of a Replacement Transaction with commercial terms substantially the same as those of this Agreement (save for the exclusion of provisions relating to Transactions that are not
Terminated Transactions).” 

  

					
		  	2	  	Issuer Swap Schedule

 (ii) The definition of “Settlement Amount” shall be deleted in its entirety and
replaced with the following: 
 “Settlement Amount” means, with respect to any Early Termination Date, an amount
(as determined by Party B) equal to: 
 (a) if, on or prior to such Early Termination Date, a Market Quotation for the relevant
Terminated Transaction or group of Terminated Transactions is accepted by Party B so as to become legally binding, the Termination Currency Equivalent of the amount (whether positive or negative) of such Market Quotation; 

(b) if, on such Early Termination Date, no Market Quotation for the relevant Terminated Transaction or group of Terminated Transactions is
accepted by Party B so as to become legally binding and one or more Market Quotations have been communicated to Party B and remain capably of becoming legally binding upon acceptance by Party B, the Termination Currency Equivalent of the amount
(whether positive or negative) of the lowest of such Market Quotation; 
 (c) if, on such Early Termination Date, no Market
Quotation for the relevant Terminated Transaction or group of Terminated Transactions is accepted by Party B so as to become legally binding and no Market Quotations have been communicated to Party B and remain capable of becoming legally binding
upon acceptance by Party B, Party B’s Loss (whether positive or negative and without reference to Unpaid Amounts) for the relevant Terminated Transaction or group of Terminated Transactions; and 

(d) At any time on or before such Early Termination Date at which two or more Market Quotations have been communicated to Party B and
remain capable of becoming legally binding upon acceptance by Party B, Party B shall be entitled to accept only the lowest of such Market Quotations (for the avoidance of doubt, (i) a Market Quotation expressed as a negative number is lower
than a Market Quotation expressed as a positive number and (ii) the lower of two Market Quotations expressed as negative numbers is the one with the largest absolute value).” 

(iii) For the purpose of sub-paragraph (4) of the definition of Market Quotation, Party B shall determine in its sole discretion,
acting in a commercially reasonable manner, whether a Firm Offer is made in respect of a Replacement Transaction with commercial terms substantially the same as those of this Agreement (save for the exclusion of provisions relating to Transactions
that are not Terminated Transactions). 
 (iv) If Party B requests Party A in writing to obtain Market Quotations, Party A shall
use its reasonable efforts to do so before the Early Termination Date. 
 (v) If the Settlement Amount is a negative number,
Section 6(e)(i)(3) of this Agreement shall be deleted in its entirety and replaced with the following: 
 “Second
Method and Market Quotation. If Second Method and Market Quotation apply, (1) Party B shall pay to Party A an amount equal to the absolute value of the Settlement Amount in respect of the Terminated Transactions, (2) Party B shall
pay to Party A the Termination Currency Equivalent of the Unpaid Amounts owing to Party A and (3) Party A shall pay to Party B the Termination Currency Equivalent of the Unpaid Amounts owing to Party B, provided that,

  

					
		  	3	  	Issuer Swap Schedule

 
(i) the amounts payable under sub-paragraphs (2) and (3), above, shall be subject to netting in accordance with Section 2(c) of this Agreement, and (ii) notwithstanding any other
provision of this Agreement, any amount payable by Party A under sub-paragraph (3), above, shall not be netted-off against any amount payable by Party B under sub-paragraph (1), above.” 

 

	(f)	“Termination Currency” means U.S. Dollars. 

  

	(g)	Additional Termination Event will apply. Each of the following events shall constitute an Additional Termination Event hereunder: 

(i) Liquidation of Collateral. The following shall constitute an Additional Termination Event in which Party B shall be the
sole Affected Party: Any commencement of a liquidation of the Collateral (as defined in the Indenture) occurs following an Event of Default under the Indenture. 
 (ii) Regulation AB Financial Disclosure. The following shall constitute an Additional Termination Event in which Party A shall be the sole Affected Party: The failure of Party A to materially
comply with or materially perform any agreement or undertaking to be complied with or performed by Party A under Part 5(t) of this Schedule. 
 (iii) [[        ] Downgrade of Party A].
[                                         
                   ] 
 (iv)
[[            ]’s First Rating Trigger Collateral].
[                                        ]

 (v) [[            ]’s Second Rating Trigger
Replacement].
[                                        ]

 In the event of an Early Termination Date in respect of an [[        ] Approved
Ratings Downgrade], an [[        ] Required Ratings Downgrade], a [[        ]’s First Rating Trigger Replacement] or a
[[        ]’s Second Rating Trigger Replacement] and the entering into by Party B of alternative swap arrangements, Party A shall pay all reasonable out-of-pocket expenses, including legal fees and stamp
taxes, relating to the entering into of such alternative swap arrangements. 
 Part 2. Tax Representations 

 

	(a)	Payer Representations. For the purpose of Section 3(e) of this Agreement, Party A will make the following representation and Party B will make the
following representation: 

 It is not required by any applicable law, as modified by the practice of any relevant
governmental revenue authority, of any Relevant Jurisdiction to make any deduction or withholding for or on account of any Tax from any payment (other than interest under Section 2(e), 6(d)(ii) or 6(e) of this Agreement) to be made by it to the
other party under this Agreement. In making this representation, it may rely on (i) the accuracy of any representations made by the other party pursuant to Section 3(f) of this Agreement, (ii) the satisfaction of the agreement
contained in Section 4(a)(i) or 4(a)(iii) of this Agreement and the accuracy and effectiveness of any document provided by the other party pursuant to Section 4(a)(i) or 4(a)(iii) of this Agreement and (iii) the satisfaction of the
agreement of the other party contained in Section 4(d) of this Agreement, provided that it shall not be a breach of this representation where reliance is placed on clause (ii) and the other party does not deliver a form or document under
Section 4(a)(iii) of this Agreement by reason of material prejudice to its legal or commercial position. 

  

					
		  	4	  	Issuer Swap Schedule

	(b)	Payee Representations. For the purpose of Section 3(f) of this Agreement, Party A and Party B will make the representations in (i) and (ii) below.

  

	 	(i)	Party A represents that it is a national banking association organized under the laws of the United States. 

 

	 	(ii)	Party B represents that it is a Delaware statutory trust organized or formed under the laws of the State of Delaware. 

Part 3. Agreement to Deliver Documents. 
 For the purpose of Sections 4(a)(i) and (ii) of this Agreement, each party agrees to deliver the following documents, as applicable: 

 

	(a)	Tax forms, documents or certificates to be delivered are: 

 Party A and Party B shall promptly deliver to the other party (or as directed) any form or document accurately completed and in a manner reasonably satisfactory to the other party that may be required or
reasonably requested in order to allow the other party to make a payment under a Transaction without any deduction or withholding for or on account of any Tax or with such deduction or withholding at a reduced rate, promptly upon reasonable demand
by the other party. 
  

	(b)	Other documents to be delivered are: 

  

							
	 Party required to deliver document
	  	 Form/Document/ Certificate
	  	 Date by which to be delivered
	  	 Covered by

Section 3(d)
 Representation of this
 Agreement

				
	Party A and Party B	  	Evidence of the authority of the signatories of this Agreement including specimen signatures of such signatories.	  	Upon execution of this Agreement.	  	Yes
				
	Party A	  	An opinion of counsel addressed to Party B in form and substance reasonably acceptable to Party B.	  	Upon execution of this Agreement.	  	No
				
	Party B	  	An opinion of Party B’s counsel addressed to Party A in form and substance reasonably acceptable to Party A.	  	Upon execution of this Agreement.	  	No

  

					
		  	5	  	Issuer Swap Schedule

							
	 Party required to deliver document
	  	 Form/Document/ Certificate
	  	 Date by which to be delivered
	  	 Covered by

Section 3(d)
 Representation of this
 Agreement

				
	Party B	  	A duly executed certificate of the secretary or assistant secretary of the Owner Trustee of Party B certifying the name and true signature of each person authorized to execute this
Agreement and enter into Transactions for Party B.	  	Upon execution of this Agreement.	  	Yes
				
	Party B	  	Copies of executed Indenture.	  	Upon execution of such Agreements	  	Yes
				
	Party A	  	Financial data relating to Party A, as required pursuant to Part 5(t) of this Schedule.	  	As required pursuant to Part 5(t) of this Schedule.	  	Yes

 Part 4. Miscellaneous. 
  

	(a)	Addresses for Notices. For the purpose of Section 12(a) of this Agreement: 

Address for notices or communications to Party A: 
  

			
	Address:	  	[                    ]
		  	[                    ]
		  	[                    ]
	Attention:	  	[                    
]

			
	Facsimile No.:	  	[                    ]
	Telephone No.:	  	[                    ]
	Electronic Messaging System Details: Not applicable

 Address for notices or communications to Party B: 

 

			
	Address:	  	Nissan Master Owner Trust Receivables
		  	 c/o [Wilmington Trust Company

Rodney Square North

		  	1100 North Market Street
		  	Wilmington, Delaware 19890]
	Attention:	  	[                              
          ]

			
	Facsimile No.:	  	[                    ]
	Telephone No.:	  	[                    ]
	Electronic Messaging System Details: [Not applicable]

  

					
		  	6	  	Issuer Swap Schedule

 With a copy to: 

 

			
	Nissan Motor Acceptance Corporation
	 One Nissan Way

Franklin, Tennessee 37067

	Attention:	  	[                    
]

			
	Telephone No.:	  	[                    ]
	Facsimile No.:	  	[                    ]

 With a copy to the Indenture Trustee at: 

 

			
	Address:	  	[U.S. Bank National Association
		  	209 South LaSalle Street, Suite 300
		  	Chicago, IL 60604]
	Attention:	  	[                    
]

			
	Facsimile No.:	  	[                    ]
	Telephone No:	  	[                    ]
	Electronic Messaging System Details: [Not applicable]

  

	(b)	Process Agent. For the purpose of Section 13(c) of this Agreement: 

 Party A appoints as its Process Agent:         Not applicable 
 Party B appoints as its Process Agent:         Not applicable 
  

	(c)	Notices. Section 12(a) of the Agreement is amended by adding the words in the third line thereof after the phrase “messaging system” and before
the “)” the words “; provided, however, any such notice or other communication may be given by facsimile transmission if telex is unavailable, no telex number is supplied by the party providing notice, or if answer back confirmation
is not received from the party to whom the telex is sent.” 

  

	(d)	Offices. The provisions of Section 10(a) of this Agreement will apply to this Agreement. 

 

	(e)	Multibranch Party. For the purpose of Section 10(c) of this Agreement: 

Party A is not a Multibranch Party. 
 Party B is not a Multibranch Party. 
  

	(f)	Calculation Agent. The Calculation Agent is the Indenture Trustee, as provided in the Indenture, unless otherwise specified in a Confirmation in relation to the
relevant Transaction. 

  

	(g)	Credit Support Document. Details of any Credit Support Document: 

  

			
	With respect to Party A:	  	The Credit Support Annex and any Eligible Guarantee in support of Party A’s obligation under this Agreement
		
	With respect to Party B:	  	Not applicable.

  

	(h)	Credit Support Provider. Credit Support Provider means in relation to 

  

					
		  	7	  	Issuer Swap Schedule

			
	Party A:	  	The guarantor under any Eligible Guarantee in support of Party A’s obligations under this Agreement
		
	Party B:	  	Not applicable.

  

	(i)	Governing Law. This Agreement will be governed by and construed in accordance with the laws of the State of New York (without reference to choice of laws
doctrine except Section 5-1401 and Section 5-1402 of the New York General Obligation Law). 

  

	(j)	Netting of Payments. The limitation set forth in Section 2(c)(ii) of this Agreement will apply and therefore the netting in Section 2(c) of this
Agreement will be limited to the same Transaction. 

  

	(k)	“Affiliate” will have the meaning specified in Section 14 of this Agreement. 

 

	(l)	No Gross Up by Party B.  

  

	 	(i)	Section 2(d)(i)(4) is hereby deleted and replaced by the following: 

 “(4)(A) If Party A is the party so required to deduct or withhold, then Party A shall make such additional payment as is necessary to ensure that the net amount actually received by Party B
(free and clear of all Taxes, whether assessed against it or Party B) will equal the full amount Party B would have received had no such deduction or withholding been required; and 

(B) if Party B is the party so required to deduct or withhold, then Party B shall make the relevant payment subject to such deduction
or withholding and Party B will not be required to gross up. 
 For the avoidance of doubt, the fact that any payment is
made by Party B subject to the provisions of (B) above shall at no time affect the obligations of Party A under (A) above.” 
  

	 	(ii)	Indemnifiable Tax. Notwithstanding the definition of “Indemnifiable Tax” in Section 14 of this Agreement, all Taxes in relation to payments by
Party A shall be Indemnifiable Taxes and in relation to payments by Party B, no Tax shall be an Indemnifiable Tax. 

 Part
5. Other Provisions. 
  

	(a)	ISDA Definitions 

The definitions and provisions contained in the 2006 ISDA Definitions (the “ISDA Definitions”) as published by the
International Swaps and Derivatives Association, Inc., are incorporated by reference into this Agreement. The Agreement and each Transaction will be governed by the ISDA Definitions as they may be officially amended and supplemented from time to
time by ISDA. 
 For the sake of clarity, unless otherwise specified in this Agreement, the following documents shall govern in
the order in which they are listed in the event of any inconsistency between any of the documents: 
  

	 	(i)	the Confirmation pertinent to the applicable Transaction; 

  

	 	(ii)	the Schedule; 

  

	 	(iii)	the ISDA Definitions; and 

  

	 	(iv)	the printed form of ISDA Master Agreement. 

  

					
		  	8	  	Issuer Swap Schedule

	(b)	Relationship Between Parties 

 Each party will be deemed to represent to the other party on the date on which it enters into a Transaction that (absent a written agreement between the parties that expressly imposes affirmative
obligations to the contrary for the Transaction): 
 (i) Non-Reliance. It is acting for its own account, and it has made
its own independent decisions to enter into that Transaction and as to whether that Transaction is appropriate or proper for it based upon its own judgment and upon advice from such advisors as it has deemed necessary. It is not relying on any
communication (written or oral) of the other party as investment advice or as a recommendation to enter into that Transaction; it being understood that information and explanations related to the terms and conditions of a Transaction shall not be
considered investment advice or a recommendation to enter into that Transaction. It has not received from the other party any assurance or guarantee as to the expected results of that Transaction. 

(ii) Assessment and Understanding. It is capable of assessing the merits of and understanding (on its own behalf or through
independent professional advice), and understands and accepts, the terms, conditions and risks of that Transaction. It is also capable of assuming, and assumes, the risks of that Transaction. 

(iii) Status of Parties. Each party is acting as principal and not as agent and the other party is not acting as a fiduciary for or
as an advisor to it in respect of that Transaction. 
 (iv) Eligible Contract Participant. It is an “eligible
contract participant” as defined in Section 1a(12) of the U.S. Commodity Exchange Act, 7 U.S.C. Section 1a(12). 

(v) FDIC Requirements. If it is a bank subject to the requirements of 12 U.S.C. § 1823(e), the necessary action to
authorize referred to in the representation in Section 3(a)(ii) includes all authorizations required under the Federal Deposit Insurance Act as amended, including amendments effected by the Financial Institutions Reform, Recovery and
Enforcement Act of 1989, and under any agreement, writ, decree, or order entered into with such party’s supervisory authorities. At all times during the term of this Agreement, such party will continuously include and maintain as part of its
official written books and records this Agreement, this Schedule and all other exhibits, supplements, and attachments hereto and documents incorporated by reference herein, all Confirmations, and evidence of all necessary authorizations. 

(vi) ERISA. It continuously represents that it is not (i) an employee benefit plan (an “ERISA Plan”) as
defined in Section 3(3) of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”), subject to Title 1 of ERISA or Section 4975 of the Internal Revenue Code of 1986, as amended, (ii) a person or
entity acting on behalf of an ERISA Plan or (iii) a person or entity the assets of which constitute assets of an ERISA Plan.” It will provide notice to the other party in the event that it is aware that it is in breach of any aspect of
this representation or is aware that with the passing of time, giving of notice or expiry of any applicable grace period, it will breach this representation. 
  

	(c)	Waiver of Jury Trial. Each party hereby irrevocably waives any and all rights to trial by jury with respect to any legal proceeding arising out of or relating to
this Agreement or any Transaction contemplated hereby. 

  

					
		  	9	  	Issuer Swap Schedule

	(d)	Severability. Any provision of this Agreement which is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the
extent of such prohibition or unenforceability without invalidating the remaining provisions of the Agreement or affecting the validity or enforceability of such provision in any other jurisdiction unless such severance shall substantially impair
the benefits of the remaining portions of this Agreement or changes the reciprocal obligations of the parties. The parties hereto shall endeavor in good faith negotiations to replace the prohibited or unenforceable provision with a valid provision,
the economic effect of which comes as close as possible to that of the prohibited or unenforceable provision. 

  

	(e)	Transfers. Notwithstanding the provisions of Section 7: 

 (i) No transfer by Party A of this Agreement or any interest or obligation in or of Party A under this Agreement shall be effective unless: 

 

	 	(A)	Party B consents to such transferee; 

  

	 	(B)	The Rating Agency Condition shall have been satisfied; 

  

	 	(C)	Party A shall have given Party B, the Servicer and the Indenture Trustee at least twenty days prior written notice of the proposed transfer; and

  

	 	(D)	such transfer otherwise complies with the terms of the Indenture and the other Transaction Agreements. 

(ii) Except to the extent contemplated by the Indenture, neither this Agreement nor any interest in or under this Agreement may be
transferred by Party B to any other entity save with Party A’s prior written consent (such consent not to be unreasonably withheld or delayed). 
 (iii) Paragraphs (i) and (ii) above are subject to the following exceptions: 
 (A) a party may make such a transfer of this Agreement pursuant to a consolidation or amalgamation with, or merger with or into, or transfer of all or substantially all its assets to, another entity (but
without prejudice to any other right or remedy under this Agreement); 
 (B) a party may make such a transfer of all or any part
of its interest in any amount payable to it from a Defaulting Party under Section 6(e). 
 (iv) If an Eligible
Replacement has made a Firm Offer (which remains an offer that will become legally binding upon acceptance by Party B) to be the transferee pursuant to a transfer in accordance with this Part 5(e), Party B shall, at Party A’s written request
and at Party A’s expense, take any reasonable steps required to be taken by Party B to effect such transfer. 
 (v) Upon the
effectiveness of any transfer, each of Party A and Party B shall be released (in each case to the extent of the obligations so transferred) from its obligations as a party to this Agreement without any further notification or other action; provided,
however, Party B shall not be released unless and until the Return Amount (pursuant to the Credit Support Annex), if any, is transferred to Party A. 
  

	(f)	Permitted Security Interest. For purposes of Section 7 of this Agreement, Party A hereby consents to the Permitted Security Interest.

  

					
		  	10	  	Issuer Swap Schedule

 “Permitted Security Interest” means the pledge and assignment by Party B of
the Swap Collateral to the Indenture Trustee pursuant to the Indenture, and the granting to the Indenture Trustee of a security interest in the Swap Collateral pursuant to the Indenture. 

“Swap Collateral” means all right, title and interest of Party B in this Agreement, each Transaction hereunder, and all
present and future amounts payable by Party A to Party B under or in connection with this Agreement or any Transaction governed by this Agreement, including, without limitation, any transfer or termination of any such Transaction. 

“Indenture Trustee” means [U.S. Bank National Association], or any successor, acting as Indenture Trustee pursuant to the
Indenture. 
  

	(g)	Absence of Certain Events. Section 3(b) of this Agreement is hereby amended by inserting the parenthetical “(with respect to Party A only)”
immediately after the phrase “No Event of Default or”. 

  

	(h)	Events of Default. Section 5(a)(i) of this Agreement is hereby amended by changing the word “third” to “first” in the phrase “if
such failure is not remedied on or before the third Local Business Day after notice of such failure is given to the party”. 

  

	(i)	Payment on Early Termination. If an Early Termination Date occurs in respect of which Party A is the Defaulting Party or the sole Affected Party with
respect to an Additional Termination Event, Party B will not be required to pay any amounts payable to Party A under Section 6(e) in respect of such Early Termination Date, and Party A will not be permitted to set-off in respect of such
amounts, until payment in full of all amounts outstanding under the Notes. 

  

	(j)	No Set-Off. Party A and Party B hereby waive any and all right of set-off with respect to any amounts due under this Agreement or any Transaction, provided that
nothing herein shall be construed to waive or otherwise limit the netting provisions contained in Sections 2(c) of this Agreement. 

  

	(k)	Indenture. Party B hereby acknowledges that Party A is a secured party under the Indenture with respect to this Agreement. The Indenture provides, and Party B
agrees, that the Indenture Trustee shall notify the Swap Counterparty of any proposed amendment or supplement to the Indenture. If such proposed amendment or supplement would materially and adversely affect any of the Swap Counterparty’s rights
or obligations under this Agreement, the Indenture Trustee shall obtain the consent of the Swap Counterparty prior to the adoption of such amendment or supplement; provided, that the Swap Counterparty’s consent to any such amendment or
supplement shall not be unreasonably withheld, and provided, further, that the Swap Counterparty’s consent will be deemed to have been given if the Swap Counterparty does not object in writing within 10 days of receipt of a written request for
such consent. 

  

	(l)	No Recourse. The liability of Party B to Party A hereunder is limited in recourse solely to the amounts payable to Party A from the Available Amounts, Advances
made on such Distribution Date and the amounts withdrawn from the Reserve Account in accordance with the priority of payments set forth in Section 8.04 of the Indenture. This section shall survive the termination of this Agreement.

  

	(m)	 No Petition. Party A hereby covenants and agrees that prior to the date which is one year (or, if longer, the applicable preference
period) and one day after payment in full of all obligations of 

  

					
		  	11	  	Issuer Swap Schedule

 
each Bankruptcy Remote Party in respect of all securities issued by any Bankruptcy Remote Party (i) it shall not authorize any Bankruptcy Remote Party to commence a voluntary winding-up or
other voluntary case or other proceeding seeking liquidation, reorganization or other relief with respect to such Bankruptcy Remote Party or its debts under any bankruptcy, insolvency or other similar law now or hereafter in effect in any
jurisdiction or seeking the appointment of an administrator, a trustee, receiver, liquidator, custodian or other similar official with respect to such Bankruptcy Remote Party or any substantial part of its property or to consent to any such relief
or to the appointment of or taking possession by any such official in an involuntary case or other proceeding commenced against such Bankruptcy Remote Party, or to make a general assignment for the benefit of any party hereto or any other creditor
of such Bankruptcy Remote Party, and (ii) it shall not commence or join with any other Person in commencing any proceeding against such Bankruptcy Remote Party under any bankruptcy, reorganization, liquidation or insolvency law or statute now
or hereafter in effect in any jurisdiction. This section shall survive the termination of this Agreement. 
 As used above,
“Bankruptcy Remote Party” means any of Nissan Wholesale Receivables Corporation II and Party B. 
  

	(n)	Confirmation. Each party acknowledges and agrees that the Confirmation executed as of the date hereof and designated as Ref. No. 492292HN shall be
the only Transaction governed by this Agreement (it being understood that, in the event such Confirmation shall be amended (in any respect), such amendment shall not constitute (for purposes of this paragraph) a separate Transaction or a separate
Confirmation). Party A and Party B shall not enter into any additional Confirmations or Transactions hereunder. 

  

	(o)	Potential Events of Default. Section 2(a)(iii) of this Agreement is amended by the deletion of the words “or Potential Event of Default”.

  

	(p)	Limitation of Liability. Notwithstanding anything contained herein to the contrary, in executing this Agreement (including the Schedule, Credit Support
Annex and each Confirmation) on behalf of Party B, each of [Wilmington Trust Company] (the “Owner Trustee”) and the Indenture Trustee is acting solely in its capacity as owner trustee of Party B or indenture trustee, as applicable,
and not in its individual capacity, and in no event shall either the Owner Trustee or the Indenture Trustee, in their respective individual capacities, have any liability for the representations, warranties, covenants, agreements or other
obligations of Party B hereunder, for which recourse shall be had solely to the assets of Party B, except to the extent of the fraud, breach of trust or willful misconduct of the Owner Trustee or the Indenture Trustee, as applicable.

  

	(q)	[[      ] Downgrade of Party A.]
[                    ]  

  

	(r)	Definitions. 

 (i)
Reference is made to that certain Indenture dated as of January 24, 2003 (the “Indenture”) among Party B, as the Issuer thereunder, and [U.S. Bank National Association], as Indenture Trustee. Capitalized terms used but not
defined in this Agreement or this Schedule will have the meanings ascribed to them in the Indenture. 
 (ii) As used herein:

 “Credit Support Annex” means the 1994 ISDA Credit Support Annex between Party A and Party B dated as of
[                ]. 

  

					
		  	12	  	Issuer Swap Schedule

 “Eligible Guarantee” means an unconditional and irrevocable guarantee that
is provided by a guarantor that has Rated Debt with respect to [        ] and with the [[        ]’s First Trigger Required Ratings] as principal debtor rather than
surety and is directly enforceable by Party B, the form and substance of which guarantee are subject to the Rating Agency Condition, where either (A) a law firm has given a legal opinion confirming that none of the guarantor’s payments to
Party B under such guarantee will be subject to withholding for tax or (B) such guarantee provides that, in the event that any of such guarantor’s payments to Party B are subject to withholding for tax, such guarantor is required to pay
such additional amount as is necessary to ensure that the net amount actually received by Party B (free and clear of any withholding tax) will equal the full amount Party B would have received had no such withholding been required. 

“Eligible Replacement” means an entity (A)(i) with the [[        ]’s First
Trigger Required Ratings] and that has Rated Debt with respect to [        ] that is the subject of a legal opinion given by a law firm confirming that none of its payments to Party B will be subject to
withholding for tax or (ii) whose present and future obligations owing to Party B are guaranteed pursuant to an Eligible Guarantee provided by a guarantor that has Rated Debt with respect to [        ]
and with the [[        ]’s First Trigger Required Ratings] and (B) could become a party to this Agreement (or party to an agreement in form and substance satisfactory to Party B, the Servicer and the
Indenture Trustee) in accordance with Part 5(e) of this Schedule and pursuant to documentation which would not be less favorable to Party B than this Agreement. 
 “Financial Institution” means a bank, broker/dealer, insurance company, structured investment vehicle or derivative product company. 

“Firm Offer” means an offer which, when made, was capable of becoming legally binding upon acceptance. 

“Free Writing Prospectus” means any free writing prospectus prepared in connection with the public offering of the Notes.

 “[[        ]’s” means [Rating Agency] or its successor.]

 “[            ] Short-term Rating” means a rating
assigned by [            ] under its short-term rating scale in respect of an entity’s short-term, unsecured and unsubordinated debt obligations. 

“Notes” mean the asset-backed notes issued by Party B under the Indenture. 

“Preliminary Prospectus Supplement” means any preliminary prospectus supplement prepared in connection with the public
offering and sale of the Notes. 
 “Prospectus Supplement” means any preliminary prospectus supplement prepared
in connection with the public offering and sale of the Notes. 
 “Qualified Counterparty” means a counterparty
that (a) has Rated Debt and (b) becomes a party to this Agreement (or party to an agreement in form and substance satisfactory to Party B, the Servicer and the Indenture Trustee) in accordance with Part 5(e) of this Schedule and pursuant
to documentation which is not less favorable to Party B than this Agreement. 
 “Rated Debt” means, with respect
to a counterparty,(1) in the case of [        ], [            ] and (2) in the case of [        ],
[            ]. 

  

					
		  	13	  	Issuer Swap Schedule

 “Rating Agencies” means [        ]
and [            ]. 
 “Rating Agency Condition”
means, with respect to any event or circumstance and each Rating Agency, either (a) written confirmation by such Rating Agency that the occurrence of such event or circumstance will not cause it to downgrade, qualify or withdraw its rating
assigned to any of the Notes or (b) in the case of [            ’s] only, that such Rating Agency shall have been given notice of such event or circumstance at least ten days
prior to the occurrence of such event or circumstance (or, if ten days’ advance notice is impracticable, as much advance notice as is practicable) and such Rating Agency shall not have issued any written notice that the occurrence of such event
or circumstance will cause it to downgrade, qualify or withdraw its rating assigned to the Notes. 
 “Relevant
Entities” means Party A and any guarantor under an Eligible Guarantee in respect of all of Party A’s present and future obligations under this Agreement. 
 [“[        ]” means [Rating Agency] or its successor.] 
 “Servicer” means Nissan Motor Acceptance Corporation or its successor. 
 “Transferor” means Nissan Wholesale Receivables Corporation II. 
  

	(s)	Amendments. Section 9(b) of this Agreement is hereby amended by inserting the following at the end thereof: 

“it being a further condition to any such amendment or modification that the Rating Agency Condition shall have been satisfied.”

  

	(t)	Regulation AB Financial Disclosure. 

 Subject to the last two paragraphs of this Part 5 (t) of this Schedule, so long as Party B, the Depositor or any of such parties’ Affiliates (collectively, “Nissan”) shall
file reports in respect of the Notes with the Securities and Exchange Commission (the “SEC”) pursuant to Sections 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), Party A
agrees to Deliver within ten (10) calendar days of receipt of a written request therefor by Party B or the Depositor, such information relating to Party A as may be necessary to enable Nissan to comply with any SEC disclosure requirements,
including without limitation information concerning Party A required by Items 1115 of Regulation AB and Forms 8-K, 10-D and 10-K. To the extent necessary to comply with Regulation AB, Party A shall obtain any necessary auditor’s consents
related to any financial statements of Party A required to be incorporated by reference into any report filed by Nissan with the SEC and promptly to forward to the Depositor any such auditor consents obtained. The information provided, or authorized
to be incorporated by reference, by Party A pursuant to this Part 5(t) is referred to as the “Additional Information.” 
 For the purpose of this Part 5(t): 
 “Deliver” includes actual
delivery or transmission of information in an EDGAR-compatible format or, in the case of any financial information required to be delivered pursuant to Item 1115 of Regulation AB and Forms 8-K, 10-D and 10-K, making such financial
information available in an EDGAR-compatible format for incorporation by reference to the extent permitted by Regulation AB, together with actual delivery of all necessary auditor’s consents. 

  

					
		  	14	  	Issuer Swap Schedule

 “EDGAR” means the SEC’s Electronic Data Gathering, Analysis and
Retrieval system. 
 “Regulation AB” means Subpart 229.1100 - Asset Backed Securities (Regulation AB), 17 C.F.R.
§§229.1100-229.1123, as such may be amended from time to time, and subject to such clarification and interpretation as have been provided by the SEC in the adopting release (Asset-Backed Securities, Securities Act Release No. 33-8518,
70 Fed. Reg. 1,506, 1,531 (Jan. 7, 2005)) or by the staff of the SEC, or as may be provided by the SEC or its staff from time to time. 
 If at any time during a period that reports are being filed with respect to Party B and the Notes in accordance with the Exchange Act and the rules and regulations of the SEC, as reasonably calculated by
the Depositor, the “significance percentage” of this Agreement for any class of the Notes is 10% or more, Party A shall within five (5) Local Business Days following receipt of request therefor provide the Additional Information
required under Item 1115(b)(1) of Regulation AB for Party A. If Party A is unable to provide such information, Party A shall within five (5) Local Business Days following receipt of request therefor, at the sole expense of Party A, without
any expense or liability to the Depositor or Party B, either (i) post Eligible Collateral, in form, substance and amount satisfactory to the Depositor, or (ii) cause a Qualified Counterparty (which satisfies the Rating Agency Condition and
any other requirements of this Agreement) to replace Party A as party to this Agreement that has agreed to Deliver any information, report, certification or accountants’ consent when and as required under this Part 5(t) hereof. 

 If at any time during a period that reports are being filed with respect to Party B and the Notes in accordance with the
Exchange Act and the rules and regulations of the SEC, as reasonably calculated by the Depositor, the “significance percentage” of this Agreement for any class of the Notes is 20% or more, Party A shall within five (5) Local Business
Days following receipt of request therefor provide the Additional Information required under Item 1115(b)(2) of Regulation AB for Party A. If Party A is unable to provide such information, Party A shall within five (5) Local Business Days
following receipt of request therefor, at the sole expense of Party A, without any expense or liability to the Depositor or Party B, cause a Qualified Counterparty (which satisfies the Rating Agency Condition and any other requirements of this
Agreement to replace Party A as party to this Agreement that has agreed to Deliver any information, report, certification or accountants’ consent when and as required under this Part 5(t) hereof.  

Party A represents and warrants that the statements appearing under the headings, “Summary — Swap Counterparty” and
“The Swap Counterparty”, in each of the Preliminary Prospectus Supplement dated [                ] related to the issuance by Party B of the Notes (the
“Preliminary Prospectus Supplement”) and the Prospectus Supplement dated [                ] related to the issuance by Party B of the Notes (the
“Prospectus Supplement”), except for the final sentence in each of the Preliminary Prospectus Supplement and the Prospectus Supplement under the heading “The Swap Counterparty,” which reads, “based on a
reasonable good faith estimate of the maximum probable exposure, the Depositor has determined that the significance percentage of the Interest Rate Swap Agreement is less than 10%” (collectively, “Prospectus Information”) are
true and correct in all material respects and do not contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein not misleading. Party A expressly intends
and agrees that any broker-dealer acting as an underwriter, placement agent or initial purchaser of the Notes (each, an “Underwriter”) are intended third-party beneficiaries of (i) the foregoing representation of Party A and
(ii) the indemnity provided in the immediately succeeding paragraph. 
 Party A shall indemnify and hold harmless Nissan,
each Underwriter, and each of Nissan’s and the Underwriters’ respective directors, officers and any person controlling Nissan or any 

  

					
		  	15	  	Issuer Swap Schedule

 
Underwriter within the meaning of the Securities Act of 1933, as amended (collectively, each, an “indemnified party”), from and against any and all losses, claims, damages and
liabilities (including reasonable legal fees and expenses) caused by any untrue statement or alleged untrue statement of a material fact contained in the Prospectus Information or in any Additional Information or caused by any omission or alleged
omission to state in the Prospectus Information or any Additional Information, as applicable, a material fact required to be stated therein or necessary to make the statements therein not misleading. Promptly after the indemnified party under this
Part 5(t) receives notice of the commencement of any such action, the indemnified party will, if a claim in respect thereof is to be made pursuant to this Part 5(t), promptly notify Party A in writing of the commencement thereof. In case any
such action is brought against the indemnified party, and it notifies Party A of the commencement thereof, Party A shall be entitled to appoint counsel of Party A’s choice at Party A’s expense to represent the indemnified party in any
action for which indemnification is sought (in which case Party A shall not thereafter be responsible for the fees and expenses of any separate counsel retained by the indemnified party except as set forth below); provided, however, that such
counsel shall be reasonably satisfactory to the indemnified party. Notwithstanding Party A’s election to appoint counsel to represent the indemnified party in an action, the indemnified party shall have the right to employ separate counsel
(including local counsel), and Party A shall bear the reasonable fees, costs and expenses of such separate counsel if (i) such indemnified party shall have been advised by such counsel that there may be one or more legal defenses available to
it which are different from or additional to those available to the indemnifying party and in the reasonable judgment of such counsel it is advisable for such indemnified party to employ separate counsel, (ii) a conflict or potential conflict
exists (based on advice of counsel to the indemnified party) between the indemnified party and the indemnifying party, (iii) Party A shall not have employed counsel reasonably satisfactory to the indemnified party to represent the indemnified
party within a reasonable time after notice of the institution of such action or (iv) Party A shall authorize the indemnified party to employ separate counsel at the expense of Party A. Party A will not, without the prior written consent of the
indemnified party, settle or compromise or consent to the entry of any judgment with respect to any pending or threatened claim, action, suit or proceeding in respect of which indemnification or contribution may be sought hereunder (whether or not
the indemnified party is an actual or potential party to such claim or action) unless such settlement, compromise or consent includes an unconditional release of each indemnified party from all liability arising out of such claim, action, suit or
proceeding. No indemnified party will settle or compromise or consent to the entry of any judgment with respect to any pending or threatened claim, action, suit or proceeding in respect of which indemnification or contribution may be sought
hereunder without the consent of Party A, which consent shall not be unreasonably withheld. 
 [SIGNATURES CONTINUE ON NEXT
PAGE] 

  

					
		  	16	  	Issuer Swap Schedule

 IN WITNESS WHEREOF, the parties have executed this Schedule by their duly authorized
officers as of the date first above written. 
  

			
	NISSAN MASTER OWNER TRUST RECEIVABLES
	
	By: [Wilmington Trust Company], not in its individual capacity but solely as owner trustee
		
	By:	 	  

	Name:	 	  

	Title:	 	  

	
	  

		
	By:	 	  

	Name:	 	  

	Title:	 	  

  

					
		  	17	  	Issuer Swap ScheduleAgreement and Plan of Merger

 Exhibit 4.1 
 EXECUTION VERSION 
 AGREEMENT AND PLAN OF MERGER 

by and among 

NUANCE COMMUNICATIONS, INC., 
 DIAMOND ACQUISITION CORPORATION 
 and 

DITECH NETWORKS, INC. 
 Dated as of September 17, 2012 

 TABLE OF CONTENTS 

 

							
	 	    	 	  	Page	 
		
	 ARTICLE I DEFINITIONS
	  	 	2	  
			
	 1.1
	    	 Certain Defined Terms
	  	 	2	  
	 1.2
	    	 Additional Defined Terms
	  	 	10	  
		
	 ARTICLE II THE MERGER
	  	 	11	  
			
	 2.1
	    	 The Merger
	  	 	11	  
	 2.2
	    	 Effective Time; Closing
	  	 	12	  
	 2.3
	    	 Effect of the Merger
	  	 	12	  
	 2.4
	    	 Certificate of Incorporation and Bylaws
	  	 	12	  
	 2.5
	    	 Directors and Officers
	  	 	12	  
	 2.6
	    	 Effect on Capital Stock
	  	 	13	  
	 2.7
	    	 Dissenting Shares
	  	 	15	  
	 2.8
	    	 Surrender of Certificates
	  	 	15	  
	 2.9
	    	 No Further Ownership Rights in any Company Common Stock
	  	 	17	  
	 2.10
	    	 Lost, Stolen or Destroyed Certificates
	  	 	17	  
	 2.11
	    	 Further Action
	  	 	17	  
		
	 ARTICLE III REPRESENTATIONS AND WARRANTIES OF THE COMPANY
	  	 	18	  
			
	 3.1
	    	 Organization; Standing and Power; Charter Documents; Subsidiaries
	  	 	18	  
	 3.2
	    	 Capital Structure
	  	 	18	  
	 3.3
	    	 Authority; No Conflict; Necessary Consents
	  	 	20	  
	 3.4
	    	 SEC Filings; Financial Statements; Internal Controls
	  	 	21	  
	 3.5
	    	 Absence of Certain Changes or Events
	  	 	24	  
	 3.6
	    	 Taxes
	  	 	24	  
	 3.7
	    	 Title to Properties
	  	 	27	  
	 3.8
	    	 Intellectual Property
	  	 	28	  
	 3.9
	    	 Restrictions on Business Activities
	  	 	32	  
	 3.10
	    	 Governmental Authorizations
	  	 	32	  
	 3.11
	    	 Litigation
	  	 	32	  
	 3.12
	    	 Compliance with Laws
	  	 	33	  
	 3.13
	    	 Environmental Matters
	  	 	34	  
	 3.14
	    	 Brokers’ and Finders’ Fees; Fees and Expenses
	  	 	35	  
	 3.15
	    	 Transactions with Affiliates
	  	 	35	  
	 3.16
	    	 Employee Benefit Plans and Compensation
	  	 	36	  
	 3.17
	    	 Contracts
	  	 	39	  
	 3.18
	    	 Insurance
	  	 	42	  
	 3.19
	    	 Disclosure
	  	 	42	  
	 3.20
	    	 Fairness Opinion
	  	 	43	  
	 3.21
	    	 Corporate Documents
	  	 	43	  
	 3.22
	    	 Customers and Suppliers
	  	 	43	  
	 3.23
	    	 Privacy
	  	 	44	  
	 3.24
	    	 Takeover Statutes and Rights Plans
	  	 	44	  

  
 -i-

							
	 ARTICLE IV REPRESENTATIONS AND WARRANTIES OF PARENT AND MERGER SUB
	  	 	44	  
			
	 4.1
	    	 Organization
	  	 	44	  
	 4.2
	    	 Authority; No Conflict; Necessary Consents
	  	 	44	  
	 4.3
	    	 Availability of Consideration
	  	 	45	  
	 4.4
	    	 Stock Ownership
	  	 	45	  
	 4.5
	    	 No Prior Merger Sub Operations
	  	 	45	  
	 4.6
	    	 Disclosure
	  	 	46	  
		
	 ARTICLE V CONDUCT BY THE COMPANY PRIOR TO THE EFFECTIVE TIME
	  	 	46	  
			
	 5.1
	    	 Conduct of Business by the Company
	  	 	46	  
	 5.2
	    	 Procedures for Requesting Parent Consent
	  	 	49	  
		
	 ARTICLE VI ADDITIONAL AGREEMENTS
	  	 	50	  
			
	 6.1
	    	 Proxy Statement
	  	 	50	  
	 6.2
	    	 Meeting of Company Stockholders; Board Recommendation
	  	 	50	  
	 6.3
	    	 Alternative Transaction Proposals
	  	 	51	  
	 6.4
	    	 Confidentiality; Access to Information
	  	 	54	  
	 6.5
	    	 Public Disclosure
	  	 	54	  
	 6.6
	    	 Regulatory Filings; Reasonable Efforts
	  	 	55	  
	 6.7
	    	 Notification of Certain Matters
	  	 	57	  
	 6.8
	    	 Third-Party Consents
	  	 	57	  
	 6.9
	    	 Employee Matters
	  	 	57	  
	 6.11
	    	 Section 16 Matters
	  	 	61	  
	 6.12
	    	 No Modification of Representations, Warranties, Covenants or Agreements
	  	 	61	  
	 6.13
	    	 Financial Statements
	  	 	61	  
	 6.14
	    	 State Takeover Statutes
	  	 	61	  
		
	 ARTICLE VII CONDITIONS TO THE MERGER
	  	 	62	  
			
	 7.1
	    	 Conditions to the Obligations of Each Party to Effect the Merger
	  	 	62	  
	 7.2
	    	 Additional Conditions to the Obligations of Parent and Merger Sub
	  	 	62	  
	 7.3
	    	 Additional Conditions to the Obligations of the Company
	  	 	63	  
		
	 ARTICLE VIII TERMINATION, AMENDMENT AND WAIVER
	  	 	64	  
			
	 8.1
	    	 Termination
	  	 	64	  
	 8.2
	    	 Notice of Termination; Effect of Termination
	  	 	65	  
	 8.3
	    	 Fees
	  	 	66	  
	 8.4
	    	 Amendment
	  	 	66	  
	 8.5
	    	 Extension; Waiver
	  	 	67	  
		
	 ARTICLE IX GENERAL PROVISIONS
	  	 	67	  
			
	 9.1
	    	 Non-Survival of Representations and Warranties
	  	 	67	  
	 9.2
	    	 Notices
	  	 	67	  
	 9.3
	    	 Interpretation; Rule of Construction
	  	 	68	  
	 9.4
	    	 Counterparts
	  	 	69	  
	 9.5
	    	 Entire Agreement; Third-Party Beneficiaries
	  	 	69	  
	 9.6
	    	 Severability
	  	 	69	  
	 9.7
	    	 Other Remedies
	  	 	69	  

  
 -ii-

							
	 9.8
	    	 Governing Law; Consent to Jurisdiction
	  	 	70	  
	 9.9
	    	 Assignment
	  	 	70	  
	 9.10
	    	 Waiver of Jury Trial
	  	 	70	  

  
 -iii-

 INDEX OF EXHIBITS AND SCHEDULES 

 

			
	Exhibits	 	
		
	Exhibit A	 	Form of Voting Agreement
	Exhibit B-1	 	Form of Key Employee Non-Competition Agreements
	Exhibit B-2	 	Form of Key Employee Offer Letters
	  
 Schedules
	 	
		
	Schedule 1	 	Signatories to Voting Agreement
	Schedule 2	 	Key Employees
	Schedule 6.6(d)	 	Reasonable Efforts

  
 -iv-

 AGREEMENT AND PLAN OF MERGER 

This AGREEMENT AND PLAN OF MERGER (this “Agreement”) is made and entered into as of September 17, 2012, by and
among Nuance Communications, Inc., a Delaware corporation (“Parent”), Diamond Acquisition Corporation, a Delaware corporation and direct wholly owned subsidiary of Parent (“Merger Sub”), and Ditech Networks, Inc., a
Delaware corporation (the “Company”). 
 RECITALS 

A. The respective Boards of Directors of Parent, Merger Sub and the Company have deemed it advisable and in the best interests of their
respective corporations and stockholders that Parent and the Company consummate the business combination and other transactions provided for herein. 
 B. The respective Boards of Directors of Merger Sub and the Company have approved, in accordance with the Delaware General Corporation Law (“Delaware Law”), this Agreement and the
transactions contemplated hereby, including the Merger. 
 C. Contemporaneously with the execution and delivery of this
Agreement by the parties hereto, and as a condition and material inducement to Parent and Merger Sub to enter into this Agreement, each of the Persons listed on Schedule 1 are entering into a Voting Agreement and an irrevocable proxy in
substantially the form attached hereto as Exhibit A (the “Voting Agreement”) pursuant to which, among other things, such stockholder agrees to vote all shares of the Company’s capital stock owned by it, him or her
in favor of the adoption of this Agreement and the other transactions contemplated hereby. 
 D. Contemporaneously with the
execution and delivery of this Agreement by the parties hereto, and as a condition and material inducement to Parent and Merger Sub to enter into this Agreement, the Persons listed on Schedule 2 (the “Key Employees”) are
entering into or executing, as applicable (i) an Employee Proprietary Information, Inventions, Non-Competition and No-Hire Agreement with Parent, each in the form attached hereto as Exhibit B-1 (collectively, the “Key Employee
Non-Competition Agreements”), and (ii) an offer letter, each in the form attached hereto as Exhibit B-2 (collectively, the “Key Employee Offer Letters”), each to be effective as of the Effective Time.

 E. The Board of Directors of the Company has resolved to recommend to its stockholders the adoption of this Agreement.

 F. Parent, as the sole stockholder of Merger Sub, has approved and adopted this Agreement and approved the Merger.

 G. Parent, Merger Sub and the Company desire to make certain representations, warranties and agreements in connection with
the Merger and also to prescribe certain conditions to the Merger. 
 NOW, THEREFORE, in consideration of the covenants,
promises and representations set forth herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows: 

  
 -1-

 ARTICLE I 
 DEFINITIONS 
 1.1 Certain Defined Terms. For all purposes of
and under this Agreement, the following capitalized terms shall have the following respective meanings: 
 (a)
“Acquisition” shall mean, for the purposes of Section 8.3(b) only, with respect to the Company, any of the following transactions (other than the transactions contemplated by this Agreement): (i) any purchase or
acquisition by any Person or “group” (as defined under Section 13(d) of the Exchange Act and the rules and regulations thereunder) of a fifty percent (50%) or more interest in the total outstanding voting securities of the
Company or any of its Subsidiaries, or any tender offer or exchange offer that if consummated would result in any Person or “group” beneficially owning fifty percent (50%) or more of the total outstanding voting securities of the
Company or any of its Subsidiaries; (ii) any merger, consolidation, business combination, recapitalization, liquidation, dissolution or similar transaction involving the Company pursuant to which the equity interests held in the Company and
retained following such transaction or issued to or otherwise received in such transaction by the stockholders of the Company immediately preceding such transaction constitute less than fifty percent (50%) of the aggregate equity interests in
the surviving or resulting entity of such transaction or any direct or indirect parent thereof; or (iii) any sale, lease, exchange, transfer, license (other than in the ordinary course of business consistent with past practices) or other
disposition (including by way of joint venture) by the Company of assets (including capital stock or other ownership interests in Subsidiaries of the Company) representing fifty percent (50%) or more of the aggregate fair market value of the
consolidated assets of the Company and its Subsidiaries, taken as a whole, immediately prior to such sale. 
 (b)
“Affiliate” shall mean a Person which directly or indirectly controls, is directly or indirectly controlled by or is directly or indirectly under common control with another Person. For purposes of the immediately preceding
sentence, the term “control” (including, with correlative meanings, the terms “controlling,” “controlled by” and “under common control with”), as used with respect to any Person, shall mean the possession,
directly or indirectly, of the power to direct or cause the direction of the management and policies of such Person, whether through ownership of voting securities, by Contract or otherwise. 

(c) “Alternative Transaction Proposal” shall mean, with respect to the Company, any offer, expression of interest or
proposal (whether binding or non-binding), or any public announcement of any intention to make any such offer, expression of interest or proposal, whether made to the Company or its stockholders, relating to any transaction or series of related
transactions involving: (i) any purchase or acquisition by any Person or “group” (as defined under Section 13(d) of the Exchange Act and the rules and regulations thereunder) of more than a twenty percent (20%) interest in
the total outstanding voting securities of the Company or any of its Subsidiaries, or any tender offer or exchange offer that if consummated would result in any Person or “group” beneficially owning twenty percent (20%) or more of the
total outstanding voting securities of the Company or any of its Subsidiaries; (ii) any merger, consolidation, business combination or similar transaction involving the Company or any of its Subsidiaries; (iii) any sale, lease, exchange,
transfer, license (other than in the ordinary course of business consistent with past practices) or other disposition (including by way of joint venture) of assets (including capital stock or other ownership interests in Subsidiaries of the Company)
representing twenty percent (20%) or more of the aggregate fair market value of the consolidated assets of the Company and its Subsidiaries, taken as a whole; (iv) any liquidation, dissolution, reorganization or recapitalization of the
Company; or (v) the declaration or payment 

  
 -2-

 
of any extraordinary dividend, whether of cash or other property, by the Company; provided, however, for the sake of clarity, the transactions among Parent, Merger Sub and the
Company contemplated by this Agreement shall not be deemed an Alternative Transaction Proposal. 
 (d) “Anti-Corruption
and Anti-Bribery Laws” shall mean the Foreign Corrupt Practices Act of 1977, as amended, any rules or regulations thereunder, or any other applicable United States or non-U.S. anti-corruption or anti-bribery laws or regulations. 

(e) “Business Day” shall mean each day that is not a Saturday, Sunday or other day on which Parent is closed for
business or banking institutions located in New York, New York are authorized or obligated by law or executive order to close. 

(f) “Change of Recommendation” shall mean the withholding, withdrawal or amendment, qualification or modification (in a
manner adverse to Parent), by the Company’s Board of Directors (or any committee thereof) of its recommendation in favor of adoption of this Agreement, and, in the case of a tender or exchange offer made by a third party directly to the
Company’s stockholders, a failure to recommend that Company’s stockholders reject such tender or exchange offer. 

(g) “China RoHS” shall mean the People’s Republic of China’s Administrative Measures on the Control of
Pollution Caused by Electronic Information Products. 
 (h) “COBRA” shall mean Title X of the Consolidated
Omnibus Budget Reconciliation Act of 1985, as amended. 
 (i) “Company Common Stock” shall mean the common
stock, par value $0.001 per share, of the Company. 
 (j) “Company Employee Plan” shall mean any International
Employee Plan and any written plan, program, policy, contract, agreement, or other arrangement whether written or unwritten, providing for compensation, severance benefits, termination pay, change of control pay, bonus pay, deferred compensation,
performance awards, stock or stock-related awards, phantom stock, commission pay, vacation or paid time off, profit sharing, welfare benefits, retirement benefits, fringe benefits, or other employee benefits or remuneration of any kind, whether
funded or unfunded, including each “employee benefit plan,” within the meaning of Section 3(3) of ERISA which is or has been maintained, contributed to, or required to be contributed to, by the Company or any ERISA Affiliate for the
benefit of any Employee, or with respect to which the Company or any ERISA Affiliate has or may have any liability or obligation, except such definition shall not include any Employment Agreement. 

(k) “Company Financial Advisor” shall mean Fairmount Partners. 

(l) “Company Intellectual Property” shall mean any and all Intellectual Property and Intellectual Property Rights that
are owned by, or claimed to be owned by, or exclusively licensed to, the Company or its Subsidiaries. 
 (m) “Company
Options” shall mean all outstanding options to purchase Company Common Stock. 

  
 -3-

 (n) “Company Preferred Stock” shall mean the preferred stock, par value
$0.001 per share, of the Company. 
 (o) “Company Products” shall mean all products, technologies and services
that are developed, owned, manufactured, distributed, sold or licensed by or on behalf of the Company and any of its Subsidiaries, and all products, technologies and services that are currently under development by the Company or any of its
Subsidiaries. 
 (p) “Company Registered Intellectual Property” shall mean all of the Registered Intellectual
Property owned by or exclusively licensed to the Company or any of its Subsidiaries. 
 (q) “Company RSUs”
shall mean restricted stock unit awards granted from the Company Stock Plans, whereby each restricted stock unit is reflected in a bookkeeping entry representing the right to receive one (1) share of Company Common Stock. 

(r) “Company Stock” shall mean the Company Preferred Stock and the Company Common Stock. 

(s) “Company Stock Plans” shall mean all stock option plans or other equity-related plans of the Company, including:
(i) the Company’s 1998 Amended and Restated Stock Option Plan, (ii) the Company’s 1999 Non-Employee Directors’ Stock Option Plan, as amended, (iii) the Company’s 1999 Non-Officer Equity Incentive Plan, as amended,
(iv) the Jasomi Networks, Inc. 2001 Stock Plan, (v) the Company’s 2005 New Recruit Stock Option Plan, as amended, (vi) the Company’s 2005 New Recruit Stock Plan, and (vii) the Company’s 2006 Equity Incentive Plan.

 (t) “Company Unvested Common Stock” shall mean any shares of Company Common Stock outstanding immediately
prior to the Effective Time that are unvested or are subject to a repurchase option, risk of forfeiture or other condition under any applicable restricted stock purchase agreement or other agreement with the Company. 

(u) “Company Warrants” shall mean all warrants to purchase Company Common Stock issued by the Company. 

(v) “Contract” shall mean any written or oral agreement, contract, subcontract, settlement agreement, lease, binding
understanding, instrument, note, option, warranty, purchase order, license, sublicense, insurance policy, benefit plan or legally binding commitment or undertaking of any nature, as in effect as of the date hereof or as may hereinafter be in effect.

 (w) “DOL” shall mean the United States Department of Labor. 

(x) “Employee” shall mean any current or, as the context so requires, former, employee, independent contractor or
director of the Company or any ERISA Affiliate. 
 (y) “Employee Agreement” shall mean (i) each
management, employment, severance, separation, change of control, settlement, bonus, consulting contractor, relocation, repatriation, expatriation, loan, visa or other agreement or Contract (including, any offer letter which provides for any term of
employment other than employment at will or any agreement providing for acceleration of Company Options or Company Unvested Common Stock, or similar equity awards, or any other agreement providing for

  
 -4-

 
compensation or benefits) between the Company or any Subsidiary and Employee pursuant to which the Company has or may reasonably be expected to have any current liability or obligation
(contingent or otherwise) and (ii) each such agreement with an Employee, whether written or unwritten, pursuant to which the Company or ERISA Affiliate has or may reasonably be expected to have any future liability or obligation (contingent or
otherwise). 
 (z) “Environmental Law” shall mean all applicable Legal Requirements promulgated by any
Governmental Entity which relate to protection of human health or safety or the environment, or which prohibit, regulate or control any Hazardous Material or any Hazardous Material Activity, including but not limited to the Comprehensive
Environmental Response, Compensation, and Liability Act of 1980, the Resource Recovery and Conservation Act of 1976, the Federal Water Pollution Control Act, the Clean Air Act, the Hazardous Materials Transportation Act, the Clean Water Act, the
Occupational Safety and Health Act, the WEEE Directive, the RoHS Directives, China RoHS, and REACH. 
 (aa)
“Environmental Permit” is any approval, permit, registration, certification, license, clearance or consent required to be obtained from any private person or any Governmental Entity with respect to a Hazardous Materials Activity
which is or was conducted by the Company or any of its Subsidiaries. 
 (bb) “ERISA” shall mean the Employee
Retirement Income Security Act of 1974, as amended. 
 (cc) “ERISA Affiliate” shall mean any Subsidiary of the
Company and any other Person under common control with the Company or any of its Subsidiaries, or that, together with the Company or any Subsidiary of the Company, could be deemed a “single employer” within the meaning of
Section 4001(b)(1) of ERISA or Section 414(b), (c), (m) or (o) of the Code, and the regulations issued thereunder. 
 (dd) “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended. 
 (ee) “Governmental Entity” shall mean any United States or foreign governmental authority, including any national, federal, territorial, state, commonwealth, province, territory,
municipality, district, local governmental jurisdiction of any nature or any other governmental, self-regulatory or quasi-governmental authority of any nature or any political or other subdivision or part of any of the foregoing. 

(ff) “Hazardous Materials Activity” shall mean the transportation, transfer, recycling, collection, labeling, packaging,
storage, use, treatment, manufacture, removal, disposal, remediation, release, exposure of others to, sale, or distribution of any Hazardous Material or any product or waste containing a Hazardous Material, or product manufactured with ozone
depleting substances, including, without limitation, any required labeling, payment of waste fees or charges (including so-called e-waste fees) and compliance with any recycling, product take-back or product content requirements, including but not
limited to the WEEE Directive, the RoHS Directives, China RoHS, and REACH. 
 (gg) “Intellectual Property”
shall mean any or all of the following: (i) works of authorship including computer programs, source code, and executable code, whether embodied in software, firmware or otherwise, architecture, documentation, designs, files, records, and data,
(ii) inventions (whether or not patentable), discoveries, improvements, and technology, (iii) proprietary and confidential information, trade secrets and know how, (iv) databases, data compilations and collections and technical data,
(v) logos, trade names, trade dress, trademarks and service marks, (vi) domain names, web addresses and sites, (vii) tools, methods and processes, (viii) devices, prototypes, schematics, breadboards, netlists, maskworks,

  
 -5-

 
test methodologies, verilog files, emulation and simulation reports, test vectors and hardware development tools, and (ix) any and all instantiations of the foregoing in any form and
embodied in any media. 
 (hh) “Intellectual Property Rights” shall mean worldwide common law and statutory
rights associated with (i) patents, patent applications and inventors’ certificates, (ii) copyrights, copyright registrations and copyright applications, “moral” rights and mask work rights, (iii) Trade Secrets,
(iv) other proprietary rights relating to intangible intellectual property, (v) trademarks, trade names and service marks, (vi) divisions, continuations, renewals, reissuances and extensions of the foregoing (as applicable) and
(vii) analogous rights to those set forth above, including the right to enforce and recover remedies for any of the foregoing. 
 (ii) “International Employee Plan” shall mean each Company Employee Plan or Employee Agreement that has been adopted, contributed to, required to be contributed to, or maintained by the
Company, any of its Subsidiaries or any ERISA Affiliate, whether formally or informally, or with respect to which the Company or any ERISA Affiliate has or may have any liability, for the benefit of Employees who perform services outside the United
States, except such definition shall not include any International Government Entity Program. 
 (jj) “International
Government Entity Program” shall mean any arrangement for the benefit of Employees who perform services outside the United States that is funded by payments by the Company, any of its Subsidiaries or any ERISA Affiliate to a Government
Entity or which is otherwise required by law. 
 (kk) “Intervening Event” shall mean a material event (other
than (i) an Alternative Transaction Proposal or a Superior Proposal, and (ii) events to the extent relating to developments in the Company’s progress toward goals set forth in its business plan) arising after the date of this
Agreement, that was neither known to the Board of Directors of the Company as of the date hereof nor reasonably foreseeable by the Board of Directors of the Company as of or prior to the date hereof, which becomes known to the Board of Directors of
the Company prior to the receipt of the Company Stockholder Approval. 
 (ll) “IRS” shall mean the United
States Internal Revenue Service. 
 (mm) “knowledge” shall mean, with respect to a party hereto, with respect
to any fact, circumstance, event or other matter in question, (i) the actual knowledge of any of the directors of such party, and (ii) the actual knowledge of any of the executive officers of such party after reasonable inquiry of the
senior employees of such party and its Subsidiaries who have primary administrative or operational responsibility for such matter in question. 
 (nn) “Legal Requirement” shall mean any federal, state, local, municipal, foreign or other law, statute, constitution, principle of common law, directive, resolution, ordinance, code,
order, decree, directive, rule, regulation, ruling or requirement issued, enacted, adopted, promulgated, implemented or otherwise put into effect by or under the authority of any Governmental Entity. 

(oo) “Liabilities” shall mean the debts, liabilities and other obligations of a Person, whether accrued or fixed,
absolute or contingent, matured or unmatured, determined or determinable, known or unknown, including those arising under any Legal Requirement, action or order by any Governmental Entity, and those arising under any Contract. 

  
 -6-

 (pp) “Lien” shall mean any mortgage, deed of trust, lien, pledge, security
interest, title retention device or collateral assignment in respect of an asset, tangible or intangible, including any restriction on the transfer of such asset. 
 (qq) “made available” shall mean that: (i) the Company has posted such materials, on or before 11:59 p.m. Pacific time on September 14, 2012, to the virtual data room managed by
the Company hosted by Intralinks; (ii) if not in written form, Parent has specifically inquired as to the matter and the Company has responded identifying the substance of matter; (iii) the Company, directly or through its legal counsel,
has provided such materials to Parent or its legal counsel, on or before 11:59 p.m. Pacific time on September 14, 2012; or (iv) the Company has made the materials available for Parent’s inspection at the Company’s executive
offices; provided, however, that materials shall not be deemed to have been “made available” if Parent has requested access to such materials at the Company’s executive offices and either the Company has denied such access or has
stated that such materials do not exist. 
 (rr) “Material Adverse Effect” shall mean, when used in connection
with an entity, any change, event, circumstance, condition or effect (any such item, an “Effect”), individually or when taken together with all other Effects, (i) that has had, or would reasonably be expected to have a
materially adverse effect on the business, results of operations or financial condition of such entity and its Subsidiaries, taken as a whole, or (ii) that has a material adverse effect on the authority or ability of such entity to perform its
obligations under this Agreement or to consummate the transactions contemplated by this Agreement in accordance with the terms hereof; provided, however, that none of the following shall be taken into account in determining whether there has
been, or would reasonably be expected to be, a Material Adverse Effect: (i) any changes in general economic, political or financial market conditions; (ii) any facts, circumstances or conditions affecting the industry generally in which
such entity operates; (iii) any acts of war (including escalation in conflicts involving the United States), acts of God (including natural disasters), terrorism or similar event (provided that, in the case of clauses (i) – (iii),
such changes, acts, facts, circumstances or conditions do not affect such entity disproportionately as compared to other companies operating in the same industries or geographies as such entity); (iv) the announcement or pendency of this
Agreement, the Merger or any of the transactions contemplated by this Agreement, including any loss of employees, and any cancellation of or delay in customer orders; (v) any changes in the trading volume or trading prices of such entity’s
capital stock; (vi) any failure to meet internal estimates or published analyst estimates, in the case of subclauses (v) or (vi), in and of themselves (provided that such exclusion shall not apply to any underlying Effect that may have
caused such change in trading prices or volumes or failure to meet estimates); or (vii) any Effects arising out of any action required to be taken, or the omission of any action that is prohibited by, the terms of this Agreement; or
(viii) any changes in applicable Legal Requirements or GAAP (provided that such changes do not affect such entity disproportionately as compared to other companies operating in the same industries or geographies as such entity). 

(ss) “Merger Sub Common Stock” shall mean the common stock, par value $0.001 per share, of Merger Sub. 

(tt) “Nasdaq” shall mean the NASDAQ Global Select Market. 

(uu) “Open Source” shall mean any open source, public source or freeware Intellectual Property, or any modification or
derivative thereof, including any version of any software licensed pursuant to any GNU general public license or limited general public license or software that is licensed pursuant to a license that purports to require the distribution of or access
to Source Code or purports to restrict the licensee’s ability to charge for distribution of or to use software for commercial purposes. 

  
 -7-

 (vv) “Pension Plan” shall mean each Company Employee Plan that is an
“employee pension benefit plan,” within the meaning of Section 3(2) of ERISA. 
 (ww) “Permitted
Liens” shall mean any of the following: (i) Liens for Taxes, assessments and governmental charges or levies either not yet due and payable or which are being contested in good faith by appropriate proceedings and for which appropriate
reserves have been established in the Company Financials in accordance with GAAP; (ii) mechanics, carriers’, workmen’s, warehouseman’s, repairmen’s, materialmen’s or other Liens or security interests that are not yet
due; (iii) Liens to secure obligations to landlords, lessors or renters under leases or rental agreements or underlying leased property; (iv) Liens imposed by applicable Legal Requirements (other than Tax law); (v) pledges or deposits
to secure obligations under workers’ compensation laws or similar legislation or to secure public or statutory obligations; (vi) pledges and deposits to secure the performance of bids, trade contracts, leases, surety and appeal bonds,
performance bonds and other obligations of a similar nature, in each case in the ordinary course of business; and (vii) Liens the existence of which are specifically disclosed in the notes to the consolidated financial statements of the Company
included in the Company SEC Reports. 
 (xx) “Person” shall mean any individual, corporation (including any
non-profit corporation), general partnership, limited partnership, limited liability partnership, joint venture, estate, trust, company (including any limited liability company or joint stock company), firm or other enterprise, association,
organization, entity or Governmental Entity. 
 (yy) “Proxy Statement” shall mean the proxy statement to be
filed with the SEC. 
 (zz) “PTO” shall mean the United States Patent and Trademark Office. 

(aaa) “REACH” shall mean the European Commission Regulation 1907/2006. 

(bbb) “Registered Intellectual Property” shall mean patents, registered copyrights, registered trademarks, and domain
names and all applications for any of the foregoing. 
 (ccc) “ROHS Directives” shall mean the European Union
Directives 2002/95/EC and 2011/65/EU on the restriction on the use of certain hazardous substances in electronic products. 

(ddd) “SEC” shall mean the United States Securities and Exchange Commission. 

(eee) “Securities Act” shall mean the Securities Act of 1933, as amended. 

(fff) “Shrink-Wrapped Code” shall mean generally commercially available binary code (other than development tools
and development environments) where available for a cost of not more than $10,000 for a perpetual license for a single user or work station (or $75,000 in the aggregate for all users and work stations). 

(ggg) “Source Code” shall mean computer software and code, in form other than object code form, including related
programmer comments and annotations, help text, data and data structures, instructions and procedural, object-oriented and other code, which may be printed out or displayed in human readable form. 

  
 -8-

 (hhh) “Subsidiary” shall mean, when used with respect to any party, any
corporation, association, business entity, partnership, limited liability company or other Person of which such party, either alone or together with one or more Subsidiaries or by one or more Subsidiaries (i) directly or indirectly owns or
controls securities or other interests representing more than fifty percent (50%) of the voting power of such Person, or (ii) is entitled, by Contract or otherwise, to elect, appoint or designate directors constituting a majority of the
members of such Person’s board of directors or other governing body. 
 (iii) “Superior Proposal” shall
mean, with respect to the Company, an unsolicited bona fide written Alternative Transaction Proposal that the Company receives at any time from and after the Date of this Agreement and prior to Closing that (i) the Board of Directors of
the Company determines in good faith (after consultation with its outside legal counsel and the Company Financial Advisor) to be more favorable (taking into account all relevant legal, financial, regulatory, timing and other aspects of such
Alternative Transaction Proposal (including the conditions thereto) and the identity of the Person making the proposal), and is more favorable from a financial point of view, to the Company’s stockholders than the transactions contemplated by
this Agreement (after taking into account all of the terms of any proposal by Parent to amend or modify the terms of the transactions contemplated by this Agreement), (ii) provides for consideration consisting exclusively of cash and/or
publicly traded securities, and for which financing, to the extent required by the Person making the offer, is then fully committed and has no material conditions other than those conditions to such Alternative Transaction Proposal, and
(iii) is reasonably capable of being consummated on the terms proposed; provided that, for purposes of this definition of “Superior Proposal,” that each reference to “20%” in the definition of “Alternative Transaction
Proposal” contained herein shall be deemed to be a reference to “50%.” 
 (jjj) “Tax” shall mean
(i) any and all U.S. federal, state, local and non-U.S. taxes, including taxes based upon or measured by gross receipts, income, profits, sales, use and occupation, and value added, goods and services, ad valorem, transfer, franchise,
withholding, payroll, recapture, employment, property and excise taxes, together with all interest, penalties and additions imposed with respect to such amounts, and (ii) any liability for the payment of any amounts of the type described in
clause (i) as a result of being or having been a member of an affiliated, consolidated, combined, unitary or similar group for any period (including any liability under Treasury Regulations Section 1.1502-6 or any comparable provision
of state or local or non-U.S. law (including any arrangement for group or consortium relief or similar arrangement)) including any liability for taxes of a predecessor or transferor or otherwise by operation of law. 

(kkk) “Tax Returns” shall mean all returns, declarations, estimates, reports, information returns, statements and other
documents, including any amendments of and attachments to any of the foregoing, filed or required to be filed in respect of any Taxes. 
 (lll) “Termination Agreement” shall mean that certain agreement between the Company and Ramp Holdings, Inc. dated September 12, 2012. 

(mmm) “Termination Fee” shall mean an amount in cash equal to one million, six hundred forty two thousand, two hundred
eighty one dollars ($1,642,281.00). 
 (nnn) “Trade Secrets” shall mean information, including a formula,
pattern, compilation, program, device, method, technique, or process, that (i) derives independent economic value, actual or potential, from not being generally known to the public or to other persons who can obtain economic value from its
disclosure or use; and (ii) is the subject of efforts that are reasonable under the circumstances to maintain its secrecy. 

  
 -9-

 (ooo) “Voting Debt” shall mean any bonds, debentures, notes or other
indebtedness of the Company or any of its Subsidiaries (i) having the right to vote on any matters on which stockholders of the Company may vote (or which is convertible into, or exchangeable for, securities having such right) or (ii) the
value of which is any way based upon or derived from capital or voting stock of the Company. 
 (ppp)
“WARN” shall mean the federal Worker Adjustment and Retraining Notification Act, as amended. 
 (qqq)
“WEEE Directive” shall mean the European Union Directive 2002/96/EC on waste electrical and electronic equipment. 
 1.2 Additional Defined Terms. The following capitalized terms shall have the respective meanings set forth in the respective Sections of this Agreement set forth opposite each such
respective terms below: 
  

			
	 Term
	  	 Section

	 401(k) Plan
	  	6.9(b)
	 Agreement
	  	Preamble
	 Antitrust Restraint
	  	6.6(e)
	 Business Partners
	  	3.17(a)(viii)
	 Certificate of Merger
	  	2.2
	 Certificates
	  	2.8(c)
	 Change of Recommendation Notice
	  	6.3(d)(ii)
	 Closing
	  	2.2
	 Closing Date
	  	2.2
	 Code
	  	2.8(d)
	 Company
	  	Preamble
	 Company Balance Sheet
	  	3.4(b)
	 Company Charter Documents
	  	3.1(b)
	 Company Disclosure Letter
	  	Article III
	 Company Financials
	  	3.4(b)
	 Company Material Contract
	  	3.17(a)
	 Company Purchase Plans
	  	3.2(c)
	 Company SEC Reports
	  	3.4(a)
	 Company Stockholder Approval
	  	3.3(a)
	 Company Stockholders’ Meeting
	  	6.2(a)
	 Confidentiality Agreement
	  	6.4(a)
	 Continuation Notice
	  	6.3(e)
	 Continuing Employees
	  	6.9(e)
	 Cutoff Time
	  	3.2(a)
	 Delaware Law
	  	RECITALS
	 Dissenting Shares
	  	2.7(a)
	 Dissenting Stockholder
	  	2.7(a)
	 Effective Time
	  	2.2
	 Employee Termination Release
	  	6.9(d)(iii)

  
 -10-

			
	 Term
	  	 Section

	 End Date
	  	8.1(b)
	 Engagement Letter
	  	3.14(a)
	 Fairness Opinion
	  	3.20
	 GAAP
	  	3.4(b)
	 Governmental Authorizations
	  	3.10
	 Indemnified Parties
	  	6.10(a)
	 Key Employee Non-Competition Agreements
	  	RECITALS
	 Key Employee Offer Letters
	  	RECITALS
	 Key Employee Severance Benefit Plan
	  	6.9(d)(iii)
	 Key Employees
	  	RECITALS
	 Lease Documents
	  	3.7(b)
	 Leased Real Property
	  	3.7(a)
	 Merger
	  	2.1
	 Merger Consideration
	  	2.6(a)
	 Merger Sub
	  	Preamble
	 Necessary Consents
	  	3.3(c)
	 Offer Letter
	  	6.9(d)
	 Option Consideration
	  	2.6(b)(i)
	 Parent
	  	Preamble
	 Parent Plans
	  	6.9(e)
	 Paying Agent
	  	2.8(a)
	 Payment Fund
	  	2.8(b)
	 Offer Letter
	  	6.9(d)(i)
	 Representatives
	  	6.3(a)
	 RSU Consideration
	  	2.6(b)(ii)
	 Section 262
	  	2.7(a)
	 Severance Benefit Plan
	  	6.9(d)(iii)
	 Significant Customer
	  	3.22(a)
	 Significant Supplier
	  	3.22(b)
	 SOX
	  	3.4(a)
	 Surviving Corporation
	  	2.1
	 Tax Incentive
	  	3.6(l)
	 Terminated Employee
	  	6.9(d)(iii)
	 Triggering Event
	  	8.1
	 Voting Agreement
	  	RECITALS

 ARTICLE II 
 THE MERGER 
 2.1 The Merger. At the Effective Time and
subject to and upon the terms and conditions of this Agreement and the applicable provisions of Delaware Law, Merger Sub shall be merged with and into the Company (the 

  
 -11-

 
“Merger”), the separate corporate existence of Merger Sub shall cease and the Company shall continue as the surviving corporation and as a wholly owned subsidiary of Parent. The
surviving corporation after the Merger is hereinafter sometimes referred to as the “Surviving Corporation.” 

2.2 Effective Time; Closing. Subject to the provisions of this Agreement, the parties hereto shall cause the Merger to be
consummated by filing a Certificate of Merger with the Secretary of State of the State of Delaware in accordance with the relevant provisions of Delaware Law (the “Certificate of Merger”) (the time of such filing with the Secretary
of State of the State of Delaware, or such later time as may be agreed in writing by the Company and Parent and specified in the Certificate of Merger, being the “Effective Time”) as soon as practicable on or after the Closing Date.
The closing of the Merger (the “Closing”) shall take place at the offices of Wilson Sonsini Goodrich & Rosati, Professional Corporation, located at 1700 K Street NW, Washington, D.C. 20006, at a time and date to be
specified by the parties, which shall be no later than the second Business Day after the satisfaction or waiver of the conditions set forth in Article V (other than those that by their terms are to be satisfied or waived at the Closing),
or at such other time, date and location as the parties hereto agree in writing. The date on which the Closing occurs is referred to herein as the “Closing Date.” 

2.3 Effect of the Merger. At the Effective Time, the effect of the Merger shall be as provided in this Agreement and the
applicable provisions of Delaware Law. Without limiting the generality of the foregoing, and subject thereto, at the Effective Time all the property, rights, privileges, powers and franchises of the Company and Merger Sub shall vest in the Surviving
Corporation, and all debts, liabilities and duties of the Company and Merger Sub shall become the debts, liabilities and duties of the Surviving Corporation. 
 2.4 Certificate of Incorporation and Bylaws. Unless otherwise determined by Parent prior to the Effective Time, at the Effective Time, the Certificate of Incorporation of the Company shall
be amended and restated in its entirety to be identical to the Certificate of Incorporation of Merger Sub, as in effect immediately prior to the Effective Time, until thereafter amended in accordance with Delaware Law and as provided in such
Certificate of Incorporation; provided, however, that at the Effective Time, Article I of the Certificate of Incorporation of the Surviving Corporation shall be amended and restated in its entirety to read as follows: “The
name of the corporation is Ditech Networks, Inc.” and the Certificate of Incorporation shall be amended so as to comply with Section 6.10(a). Unless otherwise determined by Parent prior to the Effective Time, at the Effective Time,
the Bylaws of the Company shall be amended and restated in their entirety to be identical to the Bylaws of Merger Sub, as in effect immediately prior to the Effective Time, until thereafter amended in accordance with Delaware Law and as provided in
such Bylaws. 
 2.5 Directors and Officers. Unless otherwise determined by Parent prior to the Effective Time,
(a) the initial directors of the Surviving Corporation shall be the directors of Merger Sub immediately prior to the Effective Time, until their respective successors are duly elected or appointed and qualified, (b) the initial officers of
the Surviving Corporation shall be the officers of Merger Sub immediately prior to the Effective Time, until their respective successors are duly appointed, and (c) Parent, the Company and the Surviving Corporation shall cause the

  
 -12-

 
directors and officers of Merger Sub immediately prior to the Effective Time to be the directors and officers, respectively of each of the Company’s Subsidiaries immediately after the
Effective Time (or as soon as reasonably practicable thereafter), each to hold office as a director or officer of each such Subsidiary in accordance with the provisions of the laws of the respective jurisdiction of organization and the respective
bylaws or equivalent organizational documents of each such Subsidiary. 
 2.6 Effect on Capital Stock. Upon the
terms and subject to the conditions of this Agreement, at the Effective Time, by virtue of the Merger and without any action on the part of Parent, Merger Sub, the Company or the holders of any shares of capital stock of the Company, the following
shall occur: 
 (a) Company Common Stock. Each share of Company Common Stock issued and outstanding immediately
prior to the Effective Time, other than any shares of Company Common Stock to be cancelled pursuant to Section 2.6(e), will be cancelled and extinguished and automatically converted (subject to Section 2.7) into the right to
receive cash in an amount equal to one dollar and forty five cents ($1.45), without interest thereon (the “Merger Consideration”) upon surrender of the certificate representing such share of Company Common Stock in the manner
provided in Section 2.8 (or in the case of a lost, stolen or destroyed certificate, upon delivery of an affidavit (and bond, if required) in the manner provided in Section 2.10). 

(b) Employee Equity Awards. 
 (i) Options. As of the Effective Time, by virtue of the Merger and without any action on the part of any holder thereof, each Company Option that is outstanding and unexercised immediately prior to
the Effective Time shall, to the extent then unvested, become fully vested and exercisable, and shall be canceled if not exercised prior to the Effective Time, in each case, in accordance with and pursuant to the terms of the Company Stock Plans and
related award agreements under which such Company Options were granted. In consideration of such cancellation, each holder of a Company Option that is not exercised prior to the Effective Time and has a per-share exercise price less than the Merger
Consideration, if any, will be entitled to receive in settlement of such Company Option as promptly as practicable following the Effective Time, a cash payment from Parent, reduced by any income or employment tax withholding required under the Code
or any provision of state, local or foreign tax law, equal to the product of (i) the total number of shares of Company Common Stock otherwise issuable upon exercise of such Company Option and (ii) the Merger Consideration less the
applicable exercise price per share of Company Common Stock of such Option (the “Option Consideration”). Any Company Option not exercised prior to the Effective Time with a per-share exercise price that equals or exceeds the Merger
Consideration shall be canceled at the Effective Time and no payment shall be made in respect thereof. As soon as practicable following the Effective Time, Parent shall provide to the Company funds in an amount sufficient to pay the aggregate Option
Consideration and cause the Company to pay the Option Consideration to the holders of the Company Options not exercised prior to the Effective Time as contemplated by this Section 2.6(b)(i). 

(ii) Restricted Stock Units. As of the Effective Time, each Company RSU shall be converted into the right to receive from Parent,
as promptly as practicable following the Effective Time, an amount in cash equal to the Merger Consideration that the holder would have been entitled to receive had such Company RSU vested in full and settled immediately prior to the Effective Time
(the “RSU Consideration”), reduced by any income or employment tax withholding required under the Code or any 

  
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provision of state, local or foreign tax law, and when so converted will be automatically canceled and will cease to exist. As soon as practicable following the Effective Time, Parent shall
provide to the Company funds in an amount sufficient to pay the aggregate RSU Consideration and cause the Company to pay the RSU Consideration to the holders of the Company RSUs as contemplated by this Section 2.6(b)(ii). 

(iii) Company Unvested Common Stock. As of the Effective Time, by virtue of the Merger and without any action on the part of any
holder thereof, each share of Company Unvested Common Stock shall become fully vested. 
 (iv) Necessary Actions. Prior
to the Effective Time, the Company shall take any actions necessary to be taken by the Company to effect the transactions anticipated by this Section 2.6(b) under the Company Stock Plans and all Company Option, Company Unvested Common
Stock and Company RSU agreements and any other plan or arrangement of the Company (whether written or oral, formal or informal). As soon as practicable following the date hereof, the Company shall deliver or cause to be delivered to each holder of a
Company Option, Company Unvested Common Stock or Company RSU any certifications, notices or other communications required by the terms of such Company Option, Company Unvested Common Stock or Company RSU or any agreement entered into with respect
thereto to be delivered to such holder prior to the consummation of the Merger. 
 (v) Company Purchase Plans. No new
Offerings (as defined in the Company Purchase Plans), shall begin under the Company Purchase Plans effective as of immediately following the date of this Agreement. 
 (c) Company Warrants. Prior to the Effective Time, and subject to the reasonable review and approval of Parent, the Company shall use its commercially reasonable efforts to ensure that all
Company Warrants shall be terminated and cancelled prior to the Effective Time, and shall not represent any right to receive consideration pursuant to the terms of this Agreement. 

(d) Cancellation of Treasury and Parent Owned Stock. Each share of Company Common Stock held by the Company or Parent, or
any direct or indirect wholly owned Subsidiary of the Company or of Parent, immediately prior to the Effective Time shall be cancelled and extinguished without any conversion thereof. 

(e) Capital Stock of Merger Sub. Each share of Merger Sub Common Stock issued and outstanding immediately prior to the
Effective Time shall be converted into one validly issued, fully paid and nonassessable share of common stock of the Surviving Corporation. Each certificate evidencing ownership of shares of Merger Sub Common Stock shall evidence ownership of such
shares of capital stock of the Surviving Corporation. 
 (f) Adjustments to Merger Consideration. The Merger
Consideration (including for such purposes the incorporated definition of Merger Consideration used in calculating the Option Consideration and RSU Consideration as provided in Section 2.6(b)(i) and (ii)) shall be adjusted to reflect fully the
appropriate effect of (i) any stock split, reverse stock split, stock dividend (including any dividend or distribution of securities convertible into Company Common Stock), reorganization, recapitalization, reclassification or other like change
with respect to Company Common Stock having a record date on or after the date hereof and prior to the Effective Time. 

  
 -14-

 2.7 Dissenting Shares. 

(a) Notwithstanding any other provisions of this Agreement to the contrary, any shares of Company Common Stock held by a holder who is
entitled to demand, and who properly demands, appraisal of such shares (a “Dissenting Stockholder”), pursuant to, and also complies in all material respects with, Section 262 of Delaware Law (such Section,
“Section 262” and such shares, the “Dissenting Shares”), shall not be converted into or represent a right to receive the applicable consideration for Company Common Stock set forth in Section 2.6,
but rather, such Dissenting Stockholder shall only be entitled to payment of the fair value of such Dissenting Shares in accordance with Section 262 (and, at the Effective Time, such Dissenting Shares shall no longer be outstanding and shall
automatically be cancelled and shall cease to exist, and such Dissenting Stockholder shall cease to have any right with respect thereto, except the right to receive the fair value of such Dissenting Shares in accordance with Section 262).

 (b) Notwithstanding the provisions of Section 2.7(a), if any Dissenting Stockholder shall effectively withdraw or
lose (through failure to perfect or otherwise) such holder’s appraisal rights under Section 262, then, as of the later of the Effective Time and the occurrence of such event, such Dissenting Shares shall automatically be converted into and
represent only the right to receive the consideration for Company Common Stock set forth in Section 2.6, without interest thereon, upon surrender of the certificate representing such shares. 

(c) The Company shall give Parent (i) prompt notice of any written demand for appraisal received by the Company pursuant to
Section 262, and (ii) the opportunity to participate in any negotiations and proceedings with respect to such demands. The Company shall not, except with the prior written consent of Parent, make any payment with respect to any such
demands or offer to settle or settle any such demands. Any communication to be made by the Company to any holder of Company Common Stock with respect to such demands shall be submitted to Parent in advance and shall not be presented to any holder of
Company Common Stock prior to the Company receiving Parent’s consent (not to be unreasonably withheld or delayed; and in no event delayed in a manner that prevents the Company from timely complying with its obligations under Section 262 or
other applicable Legal Requirements). 
 2.8 Surrender of Certificates. 

(a) Paying Agent. Parent shall select an institution reasonably acceptable to the Company (whose consent shall not be
unreasonably withheld or delayed) to act as the paying agent (the “Paying Agent”) for the Merger. 
 (b)
Parent to Provide Funds. Prior to the Effective Time, Parent shall enter into an agreement with the Paying Agent (to be effective as of the Effective Time) that shall provide that Parent shall deposit with the Paying Agent, in trust
for the benefit of the Company’s stockholders and for exchange in accordance with this Article II, the cash in an amount sufficient for payment of the aggregate Merger Consideration (the “Payment Fund”). 

(c) Payment Procedures. Promptly following the Effective Time, Parent shall instruct the Paying Agent to mail to each
holder of record of certificates or instruments evidencing the Company 

  
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Common Stock that were outstanding immediately prior to the Effective Time (collectively, the “Certificates”) and which were converted into the right to receive the Merger
Consideration pursuant to Section 2.6(a), (i) a letter of transmittal (which shall specify that delivery shall be effected, and risk of loss and title to the Certificates shall pass, only upon proper delivery of the Certificates to
the Paying Agent, and shall be in such form and have such other provisions as Parent and/or the Paying Agent may reasonably specify), and (ii) instructions for use in effecting the surrender of the Certificates in exchange for the Merger
Consideration pursuant to Section 2.6(a). Upon surrender of Certificates for cancellation to the Paying Agent or to such other agent or agents as may be appointed by Parent, together with such letter of transmittal, duly completed and
validly executed in accordance with the instructions thereto, and such other documents as may reasonably be required by Parent or the Paying Agent (including any required IRS Form W-9 or Form W-8), the holders of such Certificates shall be
entitled to receive in exchange therefor the Merger Consideration to which such holder is entitled pursuant to Section 2.6(a), and the Certificates so surrendered shall forthwith be canceled. Until so surrendered, outstanding
Certificates will be deemed from and after the Effective Time, for all corporate purposes, to evidence the right to receive the Merger Consideration. No interest will be paid or accrued on any cash payable to holders of Certificates pursuant to this
Agreement. In the event of a transfer of ownership of shares of Company Common Stock that is not registered in the transfer records of the Company, Merger Consideration that the holder thereof has the right to receive pursuant to
Section 2.6 may be issued to a transferee if the Certificate representing such shares of Company Common Stock is presented to the Paying Agent, accompanied by all documents required to evidence and effect such transfer and by evidence
that any applicable stock transfer Taxes have been paid. 
 (d) Required Withholding. Each of Parent, the Paying
Agent and the Surviving Corporation shall be entitled to deduct and withhold from any consideration payable or otherwise deliverable pursuant to this Agreement such amounts as may be required to be deducted or withheld therefrom under the Internal
Revenue Code of 1986, as amended (the “Code”), or any other applicable Legal Requirement. To the extent such amounts are so deducted or withheld and paid to the appropriate Governmental Entity, the amount of such consideration shall
be treated for all purposes under this Agreement as having been paid to the Person to whom such consideration would otherwise have been paid. 
 (e) No Liability. Notwithstanding anything to the contrary in this Section 2.8, neither Parent, the Paying Agent, the Surviving Corporation nor any party hereto shall be liable
to a holder of shares of Company Common Stock for any amount paid to a public official pursuant to any applicable abandoned property, escheat or similar law. 
 (f) Investment of Payment Fund. The Paying Agent shall invest the cash included in the Payment Fund as directed by Parent on a daily basis; provided that no such investment or loss
thereon shall affect the amounts payable to Company stockholders pursuant to this Article II. Any interest and other income resulting from such investment shall become a part of the Payment Fund, and any amounts in excess of the amounts
payable to Company stockholders pursuant to this Article II shall promptly be paid to Parent. To the extent that there are any losses with respect to any such investments, or the Payment Fund diminishes for any reason below the level
required for the Paying Agent to promptly pay the cash amounts contemplated by this Article II, Parent shall, or shall cause the Surviving Corporation to, promptly replace or restore the cash in the Payment Fund so as to ensure that the
Payment Fund is at all times maintained at a level sufficient for the Paying Agent to make such payments contemplated by this Article II. 
 (g) Termination of Payment Fund. Any portion of the Payment Fund which remains undistributed to the holders of Certificates six (6) months after the Effective Time shall, at the request
of the Surviving Corporation, be delivered to the Surviving Corporation or otherwise according to the instruction of 

  
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the Surviving Corporation, and any holders of the Certificates who have not surrendered such Certificates in compliance with this Section 2.8 shall after such delivery to the
Surviving Corporation, subject to Section 2.8(d), look only to the Surviving Corporation solely as general creditors for the Merger Consideration pursuant to Section 2.6(a). To the extent permitted under applicable law, any
such portion of the Payment Fund remaining unclaimed by holders of shares of Company Common Stock immediately prior to such time as such amounts would otherwise escheat to or become property of any Governmental Entity shall become the property of
Parent free and clear of any claims or interest of any Person previously entitled thereto. 
 2.9 No Further Ownership
Rights in any Company Common Stock. The Merger Consideration issued upon the surrender for exchange of Company Common in accordance with the terms hereof shall be deemed to have been paid in full satisfaction of all rights pertaining to such
Company Common Stock, and there shall be no further registration of transfers on the records of the Surviving Corporation of shares of Company Common Stock which were outstanding immediately prior to the Effective Time. If, after the Effective Time,
Certificates are presented to the Surviving Corporation for any reason, they shall be cancelled and exchanged as provided in this Article II. 
 2.10 Lost, Stolen or Destroyed Certificates. If any Certificates shall have been lost, stolen or destroyed, the Paying Agent shall issue in exchange for such lost, stolen or destroyed
Certificates, upon the making of an affidavit of that fact by the holder thereof, the Merger Consideration payable in respect thereof pursuant to Section 2.6(a) hereof; provided, however, that Parent or Paying Agent may, in
its discretion and as a condition precedent to the payment thereof, require the owner of such lost, stolen or destroyed Certificates to deliver a bond in such sum as it may reasonably direct as indemnity against any claim that may be made against
Parent, the Company or the Paying Agent with respect to the Certificates alleged to have been lost, stolen or destroyed. 

2.11 Further Action. At and after the Effective Time, the officers and directors of Parent and the Surviving Corporation
will be authorized to execute and deliver, in the name and on behalf of the Company and Merger Sub, any deeds, bills of sale, assignments or assurances and to take and do, in the name and on behalf of Company and Merger Sub, any other actions and
things to vest, perfect or confirm of record or otherwise in the Surviving Corporation any and all right, title and interest in, to and under any of the rights, properties or assets acquired or to be acquired by the Surviving Corporation as a result
of, or in connection with, the Merger. 
 ARTICLE III 

REPRESENTATIONS AND WARRANTIES OF THE COMPANY 
 Except as set forth in the disclosure letter of the Company addressed to Parent and Merger Sub, dated as of the date hereof and delivered to Parent and Merger Sub concurrently with the parties’
execution of this Agreement (the “Company Disclosure Letter”) (it being understood that (i) the Company Disclosure Letter shall be arranged in sections and subsections corresponding to the sections and subsections contained in
this Article III and (ii) the disclosures in any section or subsection of the Company Disclosure Letter shall qualify the applicable representations and warranties in the corresponding section or subsection of this
Article III and, in addition, the representations and warranties in other sections or subsections in this Article III to the extent 

  
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it is reasonably apparent on the face of such disclosures that such disclosures are applicable to such other sections or subsections), the Company represents and warrants to Parent and Merger Sub
as follows: 
 3.1 Organization; Standing and Power; Charter Documents; Subsidiaries. 

(a) Organization; Standing and Power. The Company (i) is a corporation duly organized, validly existing and in good
standing under the laws of the State of Delaware, (ii) has the requisite power and authority to own, lease and operate its properties and to carry on its business as currently conducted, and (iii) is duly qualified or licensed to do
business and in good standing as a foreign corporation in each jurisdiction in which the character or location of its assets or properties (whether owned, leased or licensed) or the nature of its business makes such qualification or licensing
necessary, except, in the case of this clause (iii), where the failure to be so qualified or licensed to do business and to be in good standing would not, individually or in the aggregate, reasonably be expected to have a Material Adverse
Effect on the Company. 
 (b) Charter Documents. The Company has made available to Parent a true and correct copy
of the certificate of incorporation, and bylaws of the Company, each as amended to date (collectively, the “Company Charter Documents”). The Company is not in violation of any of the provisions of the Company Charter Documents.

 (c) Subsidiaries. Section 3.1(c) of the Company Disclosure Letter sets forth each Subsidiary of the
Company. The Company is the owner, directly or indirectly, of all of the outstanding shares of capital stock of, or other equity or voting interests in, each such Subsidiary and all such shares or interests have been duly authorized, validly issued
and are fully paid and nonassessable, free and clear of all Liens, and any restriction on the right to vote, sell or otherwise dispose of such capital stock or other ownership interests, except for restrictions imposed by applicable securities laws.
Other than the Subsidiaries of the Company, neither the Company nor any of its Subsidiaries owns any capital stock of, or other equity or voting interests of any nature in, or any interest convertible, exchangeable or exercisable for, capital stock
of, or other equity or voting interests of any nature in, any other Person. None of the Company’s Subsidiaries, either individually or in the aggregate is material to the business of the Company and its Subsidiaries, taken as a whole. None of
the assets or liabilities of the Subsidiaries, either individually or in the aggregate is material to the business of the Company and its Subsidiaries, taken as a whole. 
 3.2 Capital Structure. 
 (a) Capital Stock. The
authorized capital stock of Company consists of: (i) fifty-five million (55,000,000) shares of Company Common Stock and (ii) five million (5,000,000) shares of Company Preferred Stock. As of the close of business on
September 14, 2012 (the “Cutoff Time”): (i) 26,894,963 shares of Company Common Stock were issued and outstanding (excluding shares of Company Common Stock held by the Company in its treasury and Company Unvested Common
Stock), (ii) no shares of Company Unvested Common Stock were issued and outstanding, (iii) no shares of Company Common Stock were issued and held by the Company in its treasury and (iv) no shares of Company Preferred Stock were issued
and outstanding. No shares of Company Common Stock or Company Preferred Stock are owned or held by any Subsidiary of the Company. All outstanding shares of Company Common Stock are duly 

  
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authorized, validly issued, fully paid and non-assessable and are not subject to preemptive rights created by statute, the Company Charter Documents, or any agreement to which the Company is a
party or by which it is bound. In the period from the Cutoff Time to the date hereof, the Company has not issued any shares of Company Stock, other than pursuant to Company Options or Company RSUs outstanding on the date hereof. 

(b) Company Unvested Common Stock and Company RSUs. Section 3.2(b) of the Company Disclosure Letter sets forth,
as of the Cutoff Time, a list of each holder of Company Unvested Common Stock and Company RSUs, and (i) the name of the holder of such Company Unvested Common Stock or Company RSUs, (ii) the number of shares of Company Unvested Common
Stock or Company RSUs held by such holder, (iii) the date of issuance of such shares of Company Unvested Common Stock or Company RSUs, (iv) the repurchase price of such Company Unvested Common Stock, (v) the extent to which such
Company right of repurchase or forfeiture has lapsed as of the Cutoff Time, and (vi) whether or not the holder of such shares of Company Unvested Common Stock or Company RSUs is an employee of the Company or one of its Subsidiaries. Except as
expressly required or provided by this Agreement, or as set forth on Section 3.2(b) of the Company Disclosure Schedule, there are no commitments or agreements obligating the Company to waive its right of repurchase or forfeiture with
respect to any Company Unvested Common Stock as a result of the Merger. In the period from the Cutoff Time to the date hereof, the Company has not issued any shares of Company Unvested Common Stock or granted any Company RSUs. 

(c) Company Options and Company Warrants. As of the Cutoff Time: (i) 3,394,662 shares of Company Common Stock are
issuable upon the exercise of Company Options under the Company Stock Plans, the weighted average exercise price of such Company Options is $3.51, and 2,581,243 shares of Company Common Stock underlying such 3,394,662 Company Options are vested and
exercisable; (ii) 1,103,761 shares of Company Common Stock are available for future grant under the Company Stock Plans; (iii) 176,280 shares of Company Common Stock are available for issuance under the Company’s Employee Stock
Purchase Plan and any other employee stock purchase plan of the Company (the “Company Purchase Plans”); (iv) no shares of Company Common Stock are issuable pursuant to outstanding options to purchase Company Common Stock
(A) which are issued other than pursuant to the Company Stock Plans and (B) other than shares reserved for issuance under the Company Purchase Plans; and (v) 100,000 shares of Company Common Stock are issuable upon the exercise of
Company Warrants. Section 3.2(c) of the Company Disclosure Letter sets forth a list, as of the Cutoff Time, of each outstanding Company Option and Company Warrant: (a) the particular Company Stock Plan (if any) pursuant to which any
such Company Option was granted; (b) the name of the holder of such Company Option or Company Warrant; (c) the number of shares of Company Common Stock subject to such Company Option or Company Warrant; (d) the exercise price of such
Company Option or Company Warrant; (e) the date on which such Company Option or Company Warrant was granted or issued; (f) the extent to which such Company Option or Company Warrant is vested and exercisable as of the Cutoff Time; and
(g) the date on which such Company Option or Company Warrant expires. All shares of Company Common Stock subject to issuance under the Company Stock Plans, the Company Purchase Plans and the Company Warrants, upon issuance on the terms and
conditions specified in the instruments pursuant to which they are issuable, will be duly authorized, validly issued, fully paid and nonassessable. Except as expressly required or provided by this Agreement, or as otherwise set forth in
Section 3.2(c) of the Company Disclosure Letter, there are no commitments or agreements obligating the Company to accelerate the vesting of any Company Option as a result of the Merger. There are no ongoing offering periods, and
therefore no purchase rights outstanding, under the Company Purchase Plans. There are no outstanding or authorized stock appreciation, phantom stock, or other similar equity awards or rights with respect to the Company. In the period from the Cutoff
Time to the date hereof, the Company has not granted any Company Options or issued any Company Warrants. 

  
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 (d) Voting Debt. Except as set forth in Section 3.2(d) of the
Company Disclosure Letter, no Voting Debt is issued or outstanding as of the date hereof. 
 (e) Other Securities.
Except as otherwise set forth in Section 3.2(b), Section 3.2(c) or Section 3.2(e) of the Company Disclosure Letter, as of the date hereof, there are no securities, options, warrants, calls, rights, contracts,
commitments, agreements, instruments, arrangements, understandings, obligations or undertakings of any kind to which the Company or any of its Subsidiaries is a party or by which any of them is bound obligating the Company or any of its Subsidiaries
to (including on a deferred basis) issue, deliver or sell, or cause to be issued, delivered or sold, additional shares of Company Stock, Voting Debt or other voting or non-voting securities of the Company or any of its Subsidiaries, or obligating
the Company or any of its Subsidiaries to issue, grant, extend or enter into any such security, option, warrant, call, right, commitment, agreement, instrument, arrangement, understanding, obligation or undertaking. All outstanding shares of Company
Stock, Company Options, Company Warrants and all outstanding shares of capital stock of each Subsidiary of the Company have been issued, granted or repurchased in compliance with (i) all applicable securities laws and all other applicable Legal
Requirements, and (ii) all requirements set forth in applicable Contracts of the Company or any of its Subsidiaries. Except for shares of Company Unvested Common Stock, there are no outstanding Contracts of the Company or any of its
Subsidiaries to (x) repurchase, redeem or otherwise acquire any shares of capital stock of, or other equity or voting interests in, the Company or any of its Subsidiaries or (y) dispose of any shares of the capital stock of, or other
equity or voting interests in, any of its Subsidiaries. The Company is not a party to any voting agreement with respect to shares of the capital stock of, or other equity or voting interests in, the Company or any of its Subsidiaries and, to the
knowledge of the Company, other than the Voting Agreements and the irrevocable proxies granted pursuant to the Voting Agreements, there are no irrevocable proxies and no voting agreements, voting trusts, rights plans, anti-takeover plans or
registration rights agreements with respect to any shares of the capital stock of, or other equity or voting interests in, the Company or any of its Subsidiaries. 
 3.3 Authority; No Conflict; Necessary Consents. 
 (a)
Authority. The Company has all requisite power and authority to enter into this Agreement and to consummate the transactions contemplated hereby, subject, in the case of consummation of the Merger, to obtaining Company Stockholder
Approval (as defined below) as contemplated in Section 6.2. The execution and delivery of this Agreement and the consummation of the transactions contemplated hereby have been duly authorized by all necessary corporate action on the part
of the Company, and no further action is required on the part of the Company to authorize the execution and delivery of this Agreement or to consummate the Merger and the other transactions contemplated hereby, subject only to obtaining the Company
Stockholder Approval and the filing of the Certificate of Merger pursuant to Delaware Law. The vote of the Company’s stockholders that is required by the Company Charter Documents, by applicable Legal Requirements and by any applicable
Contracts between the Company and any of its stockholders, to approve this Agreement, the Merger and the transactions contemplated hereby by the Company stockholders is set forth in Section 3.3(a) of the Company Disclosure Letter (such
required vote set forth on Section 3.3(a) of the Company Disclosure Letter, the “Company Stockholder Approval”). By resolution adopted by unanimous vote at a meeting of all members of the Company’s Board of
Directors duly called and held and not subsequently rescinded or modified in any way, the Board of Directors of the Company has duly (i) determined that the Merger is fair to, and in the best interests of, the Company and its stockholders, and
declared the Merger to be advisable, (ii) approved this Agreement and the transactions contemplated hereby, 

  
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including the Merger, and (iii) recommended that the stockholders of the Company approve and adopt this Agreement and approve the Merger and directed that such matter be submitted to the
Company’s stockholders at the Company Stockholders’ Meeting. This Agreement has been duly executed and delivered by the Company and, assuming due authorization, execution and delivery by Parent and Merger Sub, constitutes the valid and
binding obligation of the Company, enforceable against the Company in accordance with its terms, except that such enforceability (a) may be limited by applicable bankruptcy, insolvency, reorganization, moratorium and other similar laws
affecting or relating to creditors’ rights generally, and (b) is subject to general principles of equity. 
 (b)
No Conflict. Neither the execution and delivery of this Agreement by the Company, nor the consummation of the Merger or any other transaction contemplated hereby: (a) conflicts with, or (with or without notice or lapse of time, or
both) results in a termination, breach, impairment or violation of, or constitutes a default under, or requires a consent, waiver or approval of any Person under, (i) any provision of the Company Charter Documents, each as currently in effect,
(ii) subject to compliance with the requirements of the Necessary Consents (as defined below), any Legal Requirement applicable to the Company, any of its Subsidiaries, or any of their respective assets or properties, or (iii) except as
set forth in Section 3.3(b) of the Company Disclosure Letter, any Company Material Contract (as defined below) to which the Company or any of its Subsidiaries is a party or by which the Company, any of its Subsidiaries or any of their
respective assets or properties are bound, (except in the case of clause (iii), where such conflicts, terminations, breaches, impairments, violations or defaults, or failures to obtain such consents, waivers or approvals, individually or in the
aggregate, would not reasonably be expected to constitute a Material Adverse Effect on the Company); or (b) will result in the creation of any Lien on any of the material properties or assets of the Company or its Subsidiaries, taken as a
whole, except where such Liens, individually or in the aggregate, would not reasonably be expected to constitute a Material Adverse Effect on the Company. 
 (c) Necessary Consents. No consent, waiver, approval, order or authorization of, or registration, declaration or filing with any Governmental Entity is required to be obtained or made by the
Company in connection with the execution and delivery of this Agreement or the consummation of the Merger and other transactions contemplated hereby and thereby, except for (i) the filing of the Certificate of Merger with the Secretary of State
of the State of Delaware and appropriate documents, as required by applicable Legal Requirements, with the relevant authorities of other states in which the Company and/or Parent are qualified to do business, (ii) the filing of the Proxy
Statement with the SEC in accordance with the Exchange Act and such other filings with Governmental Entities as may be required by any federal or state securities laws, and (iii) such other consents, waivers, approvals, orders, authorizations,
registrations, declarations and filings which if not obtained or made would not, individually or in the aggregate, (x) be or reasonably be expected to be, material to the business, operations, properties, assets, liabilities, condition
(financial or otherwise) or results of operations of the Company and its Subsidiaries, taken together as a whole, or (y) be or reasonably be expected to materially impede the ability of the Company to consummate the transactions contemplated by
this Agreement (including the Merger) in accordance with the terms hereof and Law. The consents, approvals, orders, authorizations, registrations, declarations and filings set forth in (i) through (iii) are referred to herein as the
“Necessary Consents.” 
 3.4 SEC Filings; Financial Statements; Internal Controls. 

(a) SEC Filings. Since May 1, 2010, the Company has filed all required registration statements, prospectuses, reports,
schedules, forms, statements, certifications and other documents (including 

  
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exhibits and all other information incorporated by reference) required to be filed by it with, or furnished to, the SEC (all such required registration statements, prospectuses, reports,
schedules, forms, statements and other documents (including those that the Company may file subsequent to the date hereof) are referred to herein as the “Company SEC Reports”). As of their respective dates, the Company SEC Reports
(i) were prepared in accordance and complied in all material respects with the requirements of the Securities Act or the Exchange Act, as the case may be, and the rules and regulations of the SEC thereunder applicable to such Company SEC
Reports, in each case, as in effect on the date such Company SEC Report was filed, and (ii) did not at the time they were filed (or if amended or superseded by a filing prior to the date of this Agreement then on the date of such filing)
contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading, unless
corrected in a later filed Company SEC Report. None of the Company’s Subsidiaries is required to file any forms, reports or other documents with the SEC. The Company and each of its executive officers and directors are in compliance with, and
have complied, in each case in all material respects with (i) the applicable provisions of the Sarbanes-Oxley Act of 2002 and the related rules and regulations promulgated under or pursuant to such act (“SOX”), and
(ii) the applicable listing and corporate governance rules and regulations of Nasdaq. 
 (b) Financial
Statements. Each of the consolidated financial statements (including, in each case, any related notes thereto) contained in the Company SEC Reports (the “Company Financials”), including each Company SEC Report filed after
the date hereof until the Closing: (i) complied, as of their respective dates of filing with the SEC, as to form in all material respects with the published rules and regulations of the SEC with respect thereto, (ii) was prepared in
accordance with United States generally accepted accounting principles (“GAAP”) applied on a consistent basis throughout the periods involved (except as may be indicated in the notes thereto or, in the case of unaudited interim
financial statements, as may be permitted by the SEC on Form 10-Q or 8-K under the Exchange Act), and (iii) fairly presented, in all material respects, the consolidated financial position of the Company and its consolidated Subsidiaries as
at the respective dates thereof and the consolidated results of the Company’s operations and cash flows for the periods indicated (except that the unaudited interim financial statements were subject to normal and recurring year-end and
quarter-end adjustments which were not material). The Company does not intend to correct or restate, nor, to the knowledge of the Company, are there any facts or circumstances that would reasonably be expected to result in any correction or
restatement of, any material aspect of the Company Financials. The unaudited balance sheet of the Company contained in the Company SEC Reports as of January 31, 2012, is hereinafter referred to as the “Company Balance Sheet.”
The Company has not had any significant dispute with any of its auditors regarding accounting matters or policies during any of its past five (5) full fiscal years or during the current fiscal year-to-date. The books and records of the Company
have been, and are being, maintained in all material respects in accordance with applicable legal and accounting requirements, and the Company Financials are consistent in all material respects with such books and records. Neither the Company nor
any of its Subsidiaries is a party to, or has any commitment to become a party to, any joint venture, off-balance sheet partnership or any similar Contract relating to any transaction or relationship between or among the Company or any of its
Subsidiaries, on the one hand, and any unconsolidated affiliate, including any structured finance, special purpose or limited purpose Person, on the other hand, including, without limitation, any “off-balance sheet arrangements” (as
defined in Item 303(a) of Regulation S-K promulgated by the SEC), where the result, purpose or intended effect of such contract or arrangement is to avoid disclosure of any material transaction involving, or material liabilities of, the
Company and its Subsidiaries taken as a whole, in the Company’s published financial statements or other Company SEC Reports. The Company has made appropriate disclosures in the Financial Statements in accordance with the requirements of ASC
740-10 (formerly Financial Interpretation No. 48 of FASB Statement No. 109, Accounting for Uncertain Tax Positions). 

  
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 (c) No Undisclosed Liabilities. Except as reflected or reserved against in the
Company Balance Sheet, neither the Company nor any of its Subsidiaries has any Liabilities of any nature which are, individually or in the aggregate, material to the business, results of operations or financial condition of the Company and its
Subsidiaries, taken as a whole, except (i) Liabilities reflected or otherwise reserved against in the Company Balance Sheet or in the consolidated financial statements of the Company and its Subsidiaries included in the SEC Reports filed prior
to the date of this Agreement, (ii) Liabilities incurred since the date of the Company Balance Sheet in the ordinary course of business consistent with past practice which are of the type which ordinarily recur and, individually or in the
aggregate, are not material in nature or amount, and (iii) Liabilities arising under this Agreement or incurred in connection with the transactions contemplated by this Agreement (other than those arising out of a breach of
Section 5.1). 
 (d) Amendments. Since May 1, 2010, no “material contract” (as such
term is defined in Item 601(b)(10) of Regulation S-K promulgated by the SEC) filed as an exhibit to the Company SEC Reports has been amended or modified, except for amendments or modifications which have been filed as an exhibit to a
subsequently dated Company SEC Report. The Company has responded to all comment letters of the staff of the SEC relating to the Company SEC Reports, and the SEC has not advised the Company that any final responses are inadequate, insufficient or
otherwise non-responsive. To the Company’s knowledge, none of the Company SEC Reports is the subject of ongoing SEC review or outstanding SEC comments. The Company has made available to Parent true, correct and complete copies of all
correspondence between the SEC, on the one hand, and the Company and any of its Subsidiaries, on the other, including all SEC comment letters and responses to such comment letters by or on behalf of the Company, since May 1, 2010. 

(e) Escheat. There are no material amounts payable by the Company or any of its Subsidiaries under any Legal Requirement
relating to unclaimed or abandoned property or escheat. 
 (f) Internal Controls. The Company has established and
maintains a system of internal accounting controls sufficient to provide reasonable assurances that (i) transactions, receipts and expenditures of the Company and its Subsidiaries are being executed and made only in accordance with appropriate
authorizations of management and the Company’s Board of Directors, (ii) transactions are recorded as necessary (A) to permit preparation of financial statements in conformity with GAAP applied on a consistent basis and (B) to
maintain accountability for assets, (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the assets of the Company and its Subsidiaries, (iv) the amount recorded for
assets on the books and records of the Company is compared with the existing assets at reasonable intervals and appropriate action is taken with respect to any differences. There are no “significant deficiencies” or “material
weaknesses” (as defined by the Public Company Accounting Oversight Board) in the design or operation of the Company’s internal controls and procedures which would reasonably be expected to adversely affect the Company’s ability to
record, process, summarize and report financial data. To the Company’s knowledge, there is no fraud, whether or not material, that involves management or other current or former employees of the Company or any of its Subsidiaries who have a
role in the Company’s internal control over financial reporting. The Company has established and maintains “disclosure controls and procedures” (as defined in Rule 13a-15 promulgated under the Exchange Act) designed to ensure
that information required to be disclosed by the Company in the reports that it files under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the SEC’s rules and forms and that such
information is accumulated and communicated to the Company’s principal executive officer and principal financial officer, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure and to
make the certifications of the “principal executive officer” and the “principal financial officer” of the Company required by Section 302 of the SOX with respect to such reports, and such controls are effective for this
purpose. Each of the principal 

  
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executive officer of the Company and the principal financial officer of the Company (or each former principal executive officer of the Company and each former principal financial officer of the
Company, as applicable) has made all certifications required by Sections 302 and 906 of SOX and the rules and regulations promulgated thereunder with respect to the Company SEC Reports and the statements contained in such certifications are
true and accurate as of the date hereof. The Company has established and maintains “internal control over financial reporting” (as defined in Rule 13a-15 promulgated under the Exchange Act) and such internal control over financial
reporting is effective in providing reasonable assurance regarding the reliability of the Company’s financial reporting and the preparation of the Company’s financial statements in accordance with GAAP. 

3.5 Absence of Certain Changes or Events. 
 (a) Since the date of the Company Balance Sheet, the Company and its Subsidiaries have operated their businesses in the ordinary course consistent with past practices, and since such date there has not
been any Material Adverse Effect on the Company. 
 (b) Since the date of the Company Balance Sheet, neither the Company nor any
of its Subsidiaries has taken any action or failed to take any action that would have resulted in a breach of Section 5.1 (other than subsection (xvi) thereof) had such section been in effect since the date of the Company Balance
Sheet. 
 3.6 Taxes. 
 (a) Except as set forth on Section 3.6(a) of the Company Disclosure Letter, each of the Company and its Subsidiaries has prepared and timely filed all U.S. federal, state, local and non-U.S.
income and franchise Tax Returns and all other material Tax Returns required to be filed relating to any and all Taxes concerning or attributable to the Company, any of its Subsidiaries or their respective operations, and such Tax Returns in all
material respects are true, correct and complete in accordance with applicable Legal Requirements. 
 (b) Except as set forth on
Section 3.6(b) of the Company Disclosure Letter, each of the Company and its Subsidiaries has (i) timely paid all Taxes it is required to pay, and (ii) timely paid or withheld (and timely paid over any withheld amounts to the
appropriate Governmental Entity) all income Taxes, Federal Insurance Contribution Act and Federal Unemployment Tax Act amounts, and other U.S. federal, state, local and non-U.S. Taxes (including, but not limited to, all Taxes required to be reported
and withheld on any U.S or non-U.S. stock options) required to be withheld. 
 (c) Neither the Company nor any of its
Subsidiaries had any liabilities for unpaid Taxes as of the date of the Company Balance Sheet that had not been accrued or reserved on the Company Balance Sheet in accordance with GAAP, and neither the Company nor any of its Subsidiaries has
incurred any liability for Taxes since the date of the Company Balance Sheet other than in the ordinary course of business. 

(d) Neither the Company nor any of its Subsidiaries has executed any outstanding waiver of any statute of limitations on or extension of
the period for the assessment or collection of any Tax, and no 

  
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power of attorney with respect to any Taxes has been executed or filed with any Governmental Entity by or on behalf of the Company or any of its Subsidiaries that remains in effect. 

(e) Except as set forth on Section 3.6(e) of the Company Disclosure Letter, no audit or other examination of any Tax Return
of the Company or any of its Subsidiaries is presently in progress, nor has the Company or any of its Subsidiaries been notified in writing of any proposed audit or other examination. No adjustment relating to any Tax Return filed by the Company has
been proposed in writing by any Governmental Entity. The Company has made available to Parent records setting forth the dates of all audits or examinations, if any, of the Company or any of its Subsidiaries by any Governmental Entity in respect of
Taxes for which the statute of limitations has not yet expired. No claim has ever been made in writing by any Governmental Entity in a jurisdiction where the Company and its Subsidiaries do not file Tax Returns that any of them is or may be subject
to taxation by that jurisdiction. 
 (f) There are (and immediately following the Effective Time there will be) no Liens on the
Assets of the Company or any of its Subsidiaries relating or attributable to Taxes, other than Permitted Liens. 
 (g) Neither
the Company nor any of its Subsidiaries is, or has been at any time, a “United States Real Property Holding Corporation” within the meaning of Section 897(c)(2) of the Code. 

(h) Neither the Company nor any of its Subsidiaries has (a) ever been a member of an affiliated, consolidated, combined, unitary or
similar group (including within the meaning of Code §1504(a)) filing a consolidated Tax Return (other than a group the common parent of which was the Company), (b) ever been a party to any Tax sharing, indemnification or allocation
agreement, nor does the Company or any of its Subsidiaries owe any amount under any such agreement, (c) any liability for the Taxes of any person under Treasury Regulations Section 1.1502-6 (or any similar provision of state, local or
non-U.S. Law, including any arrangement for group or consortium relief or similar arrangement), as a transferee or successor, by contract, by operation of Law or otherwise (including, without limitation, liability for social security payments for
subcontractors) or (d) ever been a party to any joint venture, partnership or other agreement that could be treated as a partnership for Tax purposes. For the purposes of this Section 3.6(h), the following agreements shall be
disregarded: (i) commercially reasonable agreements providing for the allocation or payment of real property Taxes attributable to real property leased or occupied by the Company or any of its Subsidiaries, and (ii) commercially reasonable
agreements not primarily related to Taxes providing for the allocation or payment of personal property Taxes, sales or use Taxes or value added Taxes with respect to personal property leased, used, owned, purchased or sold in the ordinary course of
business and (iii) general indemnification provisions not primarily related to Taxes contained in the Company’s non-exclusive end user license agreements entered into in the ordinary course of business and consistent with past practices.

 (i) Neither the Company nor any of its Subsidiaries will be required to include any income or gain in or exclude any
deduction or loss from income for any taxable period or portion thereof after the Closing Date as a result of (a) any change in method of accounting made on or prior to the Closing Date, (b) closing agreement under Section 7121 of the
Code (or any similar Legal Requirement) entered into on or prior to the Closing Date, (c) income deferred under Section 108(i) of the Code (or any similar Legal Requirement), (d) deferred intercompany gain or excess loss account under
Treasury Regulations under Section 1502 of the Code (or any similar Legal Requirement) in connection with a transaction entered into prior to the Closing Date for any Tax period or portion thereof after the Closing Date, (e) installment
sale or open transaction disposition entered into prior to the Closing Date, (f) prepaid amount received prior to the 

  
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Closing Date or (g) under Section 951 of the Code (or any similar Legal Requirement) arising from transactions or events occurring on or prior to the Closing Date. 

(j) Neither the Company nor any of its Subsidiaries has constituted either a “distributing corporation” or a “controlled
corporation” in a distribution of stock intended to qualify for tax-free treatment under Section 355 of the Code. 

(k) Neither the Company nor any of its Subsidiaries has engaged in a reportable transaction under Treas. Reg. § 1.6011-4(b).
Neither the Company nor any of its Subsidiaries has participated in any transaction, scheme or arrangement of which a principal purpose or effect is the avoidance or evasion of a Tax liability of the Company or any of its Subsidiaries. 

(l) The Company and each of its Subsidiaries is in full compliance with all terms and conditions of any Tax exemption, Tax holiday or
other Tax reduction agreement or order that is not generally available to persons in circumstances similar to that of the holder of the grant (each, a “Tax Incentive”), and, to the knowledge of the Company, the consummation of the
transactions contemplated by this Agreement will not have any adverse effect on the continued validity and effectiveness of any such Tax Incentive. 
 (m) Neither the Company nor any of its Subsidiaries is subject to Tax in any jurisdiction other than its jurisdiction of incorporation or formation and does not have and has not at any time had a branch,
agency or permanent establishment outside the jurisdiction in which it is incorporated or itself constituted an agent or permanent establishment of any person for any Tax purpose. 

(n) The Company and its Subsidiaries are in substantial compliance with all applicable transfer pricing Laws, including the execution and
maintenance of contemporaneous documentation substantiating the transfer pricing practices and methodology of the Company and its Subsidiaries. The prices for any property or services (or for the use of any property) provided by the Company or any
of its Subsidiaries to the Company or any of its Subsidiaries are arm’s length prices for purposes of the relevant transfer pricing laws, including Treasury Regulations promulgated under Section 482 of the Code. 

(o) The Company has made available to Parent or its legal counsel or accountants copies of all income and franchise and other material
Tax Returns of the Company and each of its Subsidiaries for all Tax periods beginning on or after May 1, 2008. 
 (p)
Loss of Executive Compensation Deduction. There is no Contract to which the Company or any of its ERISA Affiliates is a party, including the provisions of this Agreement, covering any Employee of the Company or any ERISA Affiliate,
which, individually or collectively with other payments the Company makes, that will give rise to the payment of any amount that would not be deductible pursuant to Sections 404 or 162(m) of the Code. 

(q) Section 409A Compliance. Except as set forth in Section 3.6(q) of the Company Disclosure Letter,
neither the Company nor any of its Subsidiaries is a party to any agreement, contract, arrangement or plan that is a “nonqualified deferred compensation plan” subject to Section 409A of the Code and the regulations and other guidance
promulgated thereunder. Neither the Company nor any of its Subsidiaries is a party to, or otherwise obligated under, any Contract that provides for a gross up of Taxes imposed by Section 409A of the Code. Each nonqualified deferred compensation
plan maintained or sponsored by the Company or any of its Subsidiaries (as defined in Section 409A(d)(1) of the Code) has since (i) January 1, 2005 been maintained and operated in good faith compliance with Section 409A of the
Code 

  
 -26-

 
and Notice 2005-1, (ii) October 3, 2004, not been “materially modified” (within the meaning of Notice 2005-1), and (iii) January 1, 2009, been in documentary and
operational compliance with Section 409A of the Code. No Company Option, stock appreciation right, or other similar right to acquire Company Common Stock or other equity of the Company or any of its Subsidiaries granted to or held by an
individual or entity who is or may be subject to United States taxation (A) has an exercise price that is less than the fair market value of the underlying equity as of the date such Company Option, stock appreciation right or other similar
right was granted; (B) has any feature for the deferral of compensation other than the deferral of recognition of income until the later of vesting, or exercise or disposition of such Company Option, stock appreciation right or other similar
right; and (C) has failed to be properly accounted for in accordance with GAAP in the Company Financials. 
 (r)
Section 280G. There is no agreement, contract, arrangement or plan to which the Company or any of its Subsidiaries is a party, including the provisions of this Agreement, which, individually or collectively, could give rise to the
payment of any amount that would not be deductible pursuant to Sections 280G of the Code. No payment or benefit which has been, will be or may be made by the Company or any of its Subsidiaries with respect to any individual will, or could
reasonably be expected to, be characterized as a “parachute payment,” within the meaning of Section 280G(b)(2) of the Code as a result of the transactions contemplated by this Agreement, either alone or in conjunction with any other
event (whether contingent or otherwise). There is no Contract to which the Company or any ERISA Affiliate is a party or by which it is bound to compensate any individual for excise Taxes paid pursuant to Section 4999 of the Code.
Section 3.6(r) of the Company Disclosure Letter lists all persons who are “disqualified individuals” (within the meaning of Section 280G of the Code and the regulations promulgated thereunder) as determined as of the date
hereof. 
 3.7 Title to Properties. 
 (a) Properties. Neither the Company nor any of its Subsidiaries owns or has ever owned any real property nor is either party to any agreement to purchase or sell any real property.
Section 3.7(a) of the Company Disclosure Letter sets forth a list of all real property currently leased, licensed or subleased by the Company or any of its Subsidiaries or otherwise used or occupied by the Company or any of its
Subsidiaries (the “Leased Real Property”), the name of the lessor, licensor, sublessor, master lessor and/or lessee, the date of the lease, license, sublease or other occupancy right and each amendment thereto. All such current
leases are in full force and effect, are valid and effective in accordance with their respective terms (except as such enforceability may be subject to laws of general application relating to bankruptcy, insolvency, and the relief of debtors and
rules of law governing specific performance, injunctive relief, or other equitable remedies), and there is not, under any of such leases, any existing material default or event of default (or event which with notice or lapse of time, or both, would
reasonably be expected to constitute a material default) by the Company or any of its Subsidiaries, or to the knowledge of the Company, by any other party thereto. The Company or its Subsidiaries currently occupy all of the Leased Real Property for
the operation of its business. To the knowledge of the Company, no parties other than the Company or any of its Subsidiaries have a right to occupy any Leased Real Property. To the knowledge of the Company, the Leased Real Property is in compliance,
in all material respects, with Legal Requirements and neither the operations of the Company nor any of its Subsidiaries violate in any material respects any Legal Requirements relating to such property or operations thereon. The Company and each of
its Subsidiaries has performed all of its material obligations under any material termination agreements pursuant to which it has terminated any leases of real property that are no longer in effect and has no material continuing Liability with
respect to such 

  
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terminated real property leases. The Leased Real Property and the physical assets of the Company and the Subsidiaries contained therein are, in all material respects, in good condition and
repair, subject to normal wear and tear. Neither the Company nor any of its Subsidiaries would reasonably be expected to be required to expend more than $25,000 in causing any Leased Real Property to comply with the surrender conditions set forth in
the applicable Lease Documents, provided that the condition of the Leased Real Property is in the same condition as it is as of the date of this Agreement, and that such surrender is at the end of the term of the lease of such Leased Real Property.
Neither the Company nor any Subsidiaries is party to any agreement or subject to any claim that may require the payment of any real estate brokerage commissions, and no such commission is owed with respect to any of the Leased Real Property.

 (b) Documents. The Company has made available to Parent correct and complete copies of all leases, lease
guaranties, agreements for the leasing, use or occupancy of, or otherwise granting a right in or relating to the Leased Real Property, including all amendments, terminations and modifications thereof (“Lease Documents”); and there
are no other Lease Documents affecting the Leased Real Property or to which the Company or any of its Subsidiaries is bound, other than those identified in Section 3.7(b) of the Company Disclosure Letter. 

(c) Valid Title. Each of the Company and each of its Subsidiaries has good and valid title to, or, in the case of leased
properties and assets, valid leasehold interests in, all of its material tangible properties and assets, real, personal and mixed, used or held for use in its business, free and clear of any Liens except (i) as reflected in the Company Balance
Sheet, or (ii) Permitted Liens. 
 (d) Customer Information. The Company and each of its Subsidiaries has
sole and exclusive ownership, free and clear of any Liens (other than Permitted Liens), of its internally maintained customer lists and internally maintained customer licensing and purchasing histories relating to its current and former customers.

 3.8 Intellectual Property. 

(a) Registered Intellectual Property; Proceedings. Section 3.8(a) of the Company Disclosure Letter
(i) lists all Company Registered Intellectual Property and (ii) lists any proceedings or actions before any court or tribunal (including the PTO or equivalent authority anywhere in the world) in which any of the Company Registered
Intellectual Property is involved. 
 (b) Company Products. Section 3.8(b) of the Company Disclosure
Letter sets forth a list (by name and version number) of all Company Products currently sold or distributed by the Company or any of its Subsidiaries or any Company products, technologies and services that have been sold or distributed by the
Company or any of its Subsidiaries in the past twenty-four (24) months. 
 (c) Registration. To the knowledge
of Company, each item of Company Registered Intellectual Property is valid and subsisting, and all necessary registration, maintenance and renewal fees in connection with such Company Registered Intellectual Property have been paid and all necessary
documents and certificates in connection with such Company Registered Intellectual Property have been filed with the relevant patent, copyright, trademark or other authorities in the jurisdictions listed in Section 3.8(a) of the Company
Disclosure Letter for the purposes of prosecuting and maintaining such Company Registered Intellectual Property in such jurisdictions. 

  
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 (d) Further Actions. Except as set forth in Section 3.8(d) of the
Company Disclosure Letter, there are no actions that must be taken by the Company or any of its Subsidiaries within one hundred twenty (120) days of the date hereof, including the payment of any registration, maintenance or renewal fees or the
filing of any documents, applications or certificates for the purposes of maintaining, perfecting or preserving or renewing any Company Registered Intellectual Property. 
 (e) Assignments and Recordation. In each case in which the Company or any of its Subsidiaries has acquired or sought to acquire any ownership of material Intellectual Property Rights from
any Person, including as a result of engaging any Person to develop or create any material Intellectual Property or material Intellectual Property Rights for the Company or any of its Subsidiaries, the Company or, to the knowledge of the Company,
such Subsidiary, as the case may be, has obtained a valid and enforceable assignment sufficient to irrevocably transfer all such Intellectual Property Rights to the Company or such Subsidiary, as the case may be, and, to the maximum extent provided
for by, and in accordance with, applicable laws and regulations, the Company or, to the knowledge of the Company, such Subsidiary, as the case may be, has recorded each such assignment with the relevant governmental authorities, including the PTO,
the U.S. Copyright Office, or their respective equivalents in any relevant foreign jurisdiction, as the case may be. 
 (f)
Transferability. Except as set forth in Section 3.8(f) of the Company Disclosure Letter, all Company Intellectual Property will be fully transferable, alienable or licensable by Surviving Corporation and/or Parent without
restriction and without payment of any kind to any third party, subject to any licenses or similar rights granted by the Company in the Contracts identified in Section 3.8(j)(i) of the Company Disclosure Letter or described in
Section 3.8(j)(i), (ii) or (iii) of this Agreement. 
 (g) Absence of Liens.
Each item of Company Intellectual Property (including all Company Registered Intellectual Property) and, to the Company’s knowledge, all Intellectual Property licensed to the Company or its Subsidiaries, is free and clear of any Liens other
than Permitted Liens or licenses granted pursuant to the licenses-out identified in Section 3.8(j) of the Company Disclosure Letter or described in Section 3.8(j)(i), (ii), or (iii) of this Agreement. The
Company has the sole and exclusive right to bring a claim or suit against a third party for infringement, misappropriation or violation of all material Intellectual Property Rights that are Company Intellectual Property. 

(h) Transfer. Neither the Company nor any of its Subsidiaries has (i) transferred ownership of, or granted any
exclusive license of or exclusive right to use, or authorized the retention of any exclusive rights to use or joint ownership of, any Intellectual Property Rights material to the business of the Company as currently conducted and as currently
proposed to be conducted, to any other Person or (ii) permitted the Company’s or any of its Subsidiaries’ rights in such Intellectual Property Rights material to the business of the Company as currently conducted and as currently
proposed to be conducted to lapse or enter into the public domain. In addition, except as set forth in Section 3.8(f) of the Company Disclosure Letter, in the five (5) year period preceding the date of this Agreement, neither the
Company nor any of its Subsidiaries has (i) transferred ownership of, or granted any exclusive license of or exclusive right to use, or authorized the retention of any exclusive rights to use or joint ownership of, any Registered Intellectual
Property, or (ii) permitted the Company’s or any of its Subsidiaries’ rights in any Registered Intellectual Property to lapse or enter into the public domain. 
 (i) Licenses-In. Other than (i) Shrink-Wrapped Code, (ii) Open Source as set forth in Section 3.8(q) of the Company Disclosure Letter, (iii) non-disclosure
agreements entered into in the ordinary course of business, and (iv) licenses incidental to purchases of hardware, Section 3.8(i) of the Company 

  
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Disclosure Letter lists all licenses as of the date of this Agreement to which the Company or any of its Subsidiaries is a party and under which the Company or any of its Subsidiaries has been
granted or provided any Intellectual Property Rights by a third party. 
 (j) Licenses-Out. Other than
(i) written non-disclosure agreements, (ii) licenses incidental to the sale of hardware, and (iii) non-exclusive licenses and related agreements with respect thereto (including software and maintenance and support agreements) of
Company Products to end-users (in each case, pursuant to written “shrink-wrap” or “click-through” agreements that have been entered into in the ordinary course of business that do not materially differ in substance from the
Company’s standard form(s) which are included in Section 3.8(j)(i) of the Company Disclosure Letter), Section 3.8(j)(ii) of the Company Disclosure Letter lists all licenses, cross-licenses and Contracts under which the
Company or any of its Subsidiaries has granted any Intellectual Property Rights to any third party. 
 (k) No
Infringement. The operation of the business of the Company and its Subsidiaries as it is currently conducted or is currently contemplated to be conducted by the Company and its Subsidiaries, including the design, development, use, import,
branding, advertising, promotion, marketing, manufacture and sale of any Company Product does not infringe or misappropriate, and will not infringe or misappropriate when conducted by Parent and/or Surviving Corporation immediately following the
Closing in the manner currently conducted or currently proposed by the Company to be conducted, any valid Intellectual Property Rights of any Person, violate any material right of any Person (including any right to privacy or publicity), or
constitute unfair competition or unfair trade practices under the laws of any jurisdiction. No third party that has licensed Intellectual Property or Intellectual Property Rights to the Company or any of its Subsidiaries has ownership rights or
license rights to improvements or derivative works made by the Company or any of its Subsidiaries in such Intellectual Property that has been licensed to the Company or any of its Subsidiaries. 

(l) Notice. Except as set forth in Section 3.8(l) of the Company Disclosure Letter, neither the Company nor any
of its Subsidiaries has received written notice from any Person claiming that any Company Product or Company Intellectual Property infringes or misappropriates any Intellectual Property Rights of any Person or constitutes unfair competition or trade
practices under the laws of any jurisdiction (nor does the Company have knowledge of any basis therefor). 
 (m) No Third
Party Infringement. To the knowledge of the Company, no person has infringed or misappropriated, or is infringing or misappropriating, any Intellectual Property Rights that are Company Intellectual Property, where such infringement or
misappropriation has had or would reasonably be expected to have a Material Adverse Effect on the Company’s business. 

(n) Transaction. Neither this Agreement nor the transactions contemplated by this Agreement, including the assignment to
Parent by operation of law or otherwise of any Contracts to which the Company or any of its Subsidiaries is a party, will result in: (i) Parent, any of its subsidiaries or the Surviving Corporation granting to any third party any right to or
with respect to any Intellectual Property Rights (other than those acquired as a result hereof) owned by, or licensed to, any of them, (ii) Parent, any of its subsidiaries or the Surviving Corporation, being bound by, or subject to, any
non-compete or other material restriction on the operation or scope of their respective businesses, or (iii) Parent, any of its subsidiaries or the Surviving Corporation being obligated to pay any royalties or other material amounts, or offer
any discounts, to any third party in excess of those payable by Company or any of its Subsidiaries, or required to be offered by, Company or any of its Subsidiaries, respectively, in the absence of this Agreement or the transactions contemplated
hereby. The Company is not party to, subject to, or bound by any Contract that would currently give any third party any option, right of first refusal or offer, right of negotiation or similar right with respect

  
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to the acquisition of the Company, any Subsidiary or any of their respective assets, or the exclusive licensing of any Company Intellectual Property. 

(o) Confidentiality and Security. Each of the Company and its Subsidiaries has taken commercially reasonable steps to
protect the security of the Company’s Intellectual Property and the Company’s rights in confidential information and Trade Secrets of the Company and any of its Subsidiaries and in confidential information and Trade Secrets provided by any
other Person to the Company or any of its Subsidiaries. Without limiting the foregoing, each of the Company and its Subsidiaries has, and enforces, a policy requiring each current and former employee, consultant and contractor engaged or likely to
be engaged in the creation of any material Intellectual Property Rights or material Intellectual Property to execute sufficient proprietary information and confidentiality agreements and all such current and former employees, consultants and
contractors of the Company or any Subsidiary have executed such agreements. 
 (p) No Order. No material Company
Intellectual Property or Company Product is subject to any proceeding or outstanding decree, order, judgment, settlement agreement, forbearance to sue, consent, stipulation or similar obligation that restricts in any manner the use, transfer or
licensing thereof by the Company or any of its Subsidiaries or may affect the validity, use or enforceability of such Company Intellectual Property or Company Product. 
 (q) Open Source. Except as set forth in Section 3.8(q) of the Company Disclosure Letter, no Company Product sold, licensed or distributed by the Company or any of its
Subsidiaries in the past twenty-four (24) months contains, includes or constitutes Open Source. 
 (r) Source
Code. Neither the Company, any of its Subsidiaries, nor any other Person acting on any of their behalf has disclosed, delivered or licensed to any Person, agreed to disclose, deliver or license to any Person, or permitted the disclosure or
delivery to any escrow agent or other Person of, any material portion of Source Code that is Company Intellectual Property or any Source Code for any Company Product sold, licensed or distributed by the Company or any of its Subsidiaries in the past
twenty-four (24) months. No event has occurred, and no circumstance or condition exists, that (with or without notice or lapse of time, or both) will, or would reasonably be expected to, result in the disclosure or delivery by the Company, any
of its Subsidiaries or any Person acting on their behalf to any Person of any material portion of Source Code that is Company Intellectual Property or any Source Code for any Company Product sold, licensed or distributed by the Company or any of its
Subsidiaries in the past twenty-four (24) months. Section 3.8(r) of the Company Disclosure Letter identifies each Contract pursuant to which the Company has deposited, or is or may be required to deposit, with an escrow agent or any
other Person, any material portion of Source Code that is Company Intellectual Property or any Source Code for any Company Product sold, licensed or distributed by the Company or any of its Subsidiaries in the past twenty-four (24) months, and
describes whether the execution of this Agreement or any of the other transactions contemplated by this Agreement, could result in the release from escrow of any material portion of Source Code that is Company Intellectual Property or any Source
Code for any Company Product. For the purposes of this Section 3.8(r), “Source Code” does not include Open Source. 
 (s) Government Funding. Except as shown in Section 3.8(s) of the Company Disclosure Letter, no government funding, facilities or resources of a university, college, other
educational institution or research center or funding from third parties was used in the development of the Company Intellectual Property, and no Governmental Entity, university, college, other educational institution or research center has any
claim or right in or to the Company Intellectual Property. 

  
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 (t) Simulscribe. Neither the consummation of the Merger (or any other
transaction contemplated hereby) nor the acts or omissions of the Company or any of its Subsidiaries have resulted or are likely to result in a “Trigger Event,” as defined under the Reseller Agreement between Diamond and Simulscribe LLC,
dated September 10, 2009, as amended. 
 3.9 Restrictions on Business Activities. Except as set forth in
Section 3.9 of the Company Disclosure Letter, neither the Company nor any of its Subsidiaries is a party to, and no asset or property of the Company or any Subsidiary is bound or affected by, any judgment, injunction, order, decree or
Contract (non-compete or otherwise) that restricts, in any respect, or prohibits the Company and its Subsidiaries, taken as a whole, from competing anywhere in the world, or from making use of any material Intellectual Property or Intellectual
Property Rights (including any judgments, injunctions, orders, decrees or Contracts restricting the geographic area in which the Company or any of its Subsidiaries may sell, license, market, distribute or support any products or technology or
provide services or restricting the markets, customers or industries that the Company or any of its Subsidiaries may address in operating the Company’s business, or restricting the prices which the Company or any of its Subsidiaries may charge
for its products, technology or services (including most favored customer pricing provisions), or the acquisition by the Company or any of its Subsidiaries of any property or assets), or includes any grants by the Company or any of its Subsidiaries
of exclusive rights or licenses, rights of refusal, rights of first negotiation or similar rights. 
 3.10 Governmental
Authorizations. Each consent, license, permit, grant, approval or other authorization from a Governmental Entity which is material to the operation of the business of the Company and its Subsidiaries, taken as a whole, as currently conducted
(collectively, “Governmental Authorizations”) has been issued or granted to the Company or any of its Subsidiaries, as the case may be. The Governmental Authorizations granted to the Company and to its Subsidiaries are in full force
and effect. As of the date hereof, no suspension or cancellation of any of the Governmental Authorizations granted to the Company and to its Subsidiaries, is pending or, to the knowledge of the Company, threatened, except for such suspensions or
cancellations that would not, individually or in the aggregate, be material to the Company and its Subsidiaries, taken as a whole. Neither the Company nor any of its Subsidiaries has received any written notice or other written communication from
any Governmental Entity regarding any actual or possible violation of any Legal Requirement or any Governmental Authorization. The Company and its Subsidiaries are in compliance in all material respects with the terms of the Governmental
Authorizations. 
 3.11 Litigation. Except as set forth in Section 3.11 of the Company Disclosure
Letter, there is no action, suit, claim, audit or proceeding of any nature pending or, to the knowledge of the Company, threatened against the Company, any of its Subsidiaries, or any of their respective properties (tangible or intangible), or any
of their respective officers or directors (in their respective capacities as such) that (i) involves or alleges an amount in controversy in excess of $25,000, (ii) seeks injunctive relief, or (iii) seeks to impose any legal restraint
on or prohibition against or limit the Surviving Corporation’s ability to operate the business of the Company and its Subsidiaries as it was operated immediately prior to the date of this Agreement nor is there any reasonable basis therefor.
There is no investigation or other proceeding pending or, to the knowledge of the Company, threatened against the Company, any of its Subsidiaries, any of their respective properties (tangible or intangible), or any of their respective officers or
directors by or before any Governmental Entity, in each case, 

  
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that would reasonably be expected to be, individually or in the aggregate, material to the Company and its Subsidiaries, taken as a whole nor is there any reasonable basis therefor. There has not
been since May 1, 2010, nor are there currently, any internal investigations or inquiries being conducted by the Company, the Company’s Board of Directors (or any committee thereof) or any third party at the request of the Company or the
Company’s Board of Directors (or any committee thereof) concerning any financial, accounting, tax, conflict of interest, illegal activity, discrimination, harassment, fraudulent or deceptive conduct or other misfeasance or malfeasance issues,
nor are there, to the knowledge of the Company, any facts or circumstances that would reasonably be expected to give rise to such an investigation or inquiry. 
 3.12 Compliance with Laws. 
 (a) Compliance. Except as
set forth on Section 3.12(a) of the Company Disclosure Letter, neither the Company nor any of its Subsidiaries is in violation, in any material respect, or default of any Legal Requirements applicable to the Company or any of its
Subsidiaries or by which the Company or any of its Subsidiaries or any of their respective properties is bound or affected. 

(b) Anti-Corruption and Anti-Bribery Laws. 
 (i) Neither the Company nor any of its Subsidiaries (including any of their officers, directors, agents, distributors, employees or other Person associated with or acting on their behalf) has, directly or
indirectly, used any corporate funds for unlawful contributions, gifts, entertainment or other unlawful expenses relating to political activity, made any unlawful payment to foreign or domestic government officials or employees or made any bribe,
rebate, payoff, influence payment, kickback or other similar unlawful payment, or taken any action which would cause it to be in violation of taken any action which would cause it to be in violation of any Anti-Corruption or Anti-Bribery Laws.

 (ii) There are no pending or, to the Company’s knowledge, threatened claims, charges, investigations, violations,
settlements, civil or criminal enforcement actions, lawsuits, or other court actions against the Company with respect to any Anti-Corruption and Anti-Bribery Laws. 
 (iii) To the Company’s knowledge, there are no actions, conditions or circumstances pertaining to the Company’s activities that would reasonably be expected to give rise to any future claims,
charges, investigations, violations, settlements, civil or criminal actions, lawsuits, or other court actions under any Anti-Corruption and Anti-Bribery Laws. 
 (iv) The Company has reasonable internal controls and procedures appropriate to the requirements of Anti-Corruption and Anti-Bribery Laws. 

(c) NASDAQ. Except as set forth in Section 3.12(c) of the Company Disclosure Letter, the Company is in
compliance with the applicable criteria for continued listing of the Company Common Stock on Nasdaq, including all applicable corporate governance rules and regulations. 
 (d) Certifications. Except as set forth in Section 3.12(d) of the Company Disclosure Letter, the Company has sought and received: 

  
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 (i) for all Company Products sold or distributed in the United States that are eligible to
receive approval and certification with respect to safety or electromagnetic compatibility compliance, or both, the approval and certification (A) as to safety by Underwriters Laboratories (or equivalent certifying organization), and/or
(B) as to electromagnetic compatibility compliance by the United States Federal Communications Commission; and 
 (ii) for
all Company Products sold or distributed outside the United States that are eligible to receive approval and certification with respect to safety or electromagnetic compatibility compliance, or both, the approval and certification as to safety and
electromagnetic compatibility compliance by (A) the appropriate Governmental Entity of the European Union (or any of its member States), and/or (B) an internationally recognized certifying organization. 

3.13 Environmental Matters. 
 (a) Condition of Property. Except in compliance in all material respects with Environmental Laws and in a manner that could not reasonably be expected to subject the Company or any of its
Subsidiaries to Liability material to the Company and its Subsidiaries, taken as a whole, no Hazardous Materials are present on any real property currently owned, operated, occupied, controlled or leased by the Company or any Subsidiary or were
present on any other real property at the time it ceased to be owned, operated, occupied, controlled or leased by the Company or any Subsidiary. There are no underground storage tanks, asbestos which is friable or likely to become friable or PCBs
present on any real property currently owned, operated, occupied, controlled or leased by the Company or any of its Subsidiaries or as a consequence of the acts of the Company, any of its Subsidiaries, or any of their respective agents. 

(b) Hazardous Materials Activities. The Company and its Subsidiaries have conducted their business in compliance in all
material respects with all applicable Environmental Laws. As of the Closing, except as set forth on Section 3.13(b) of the Company Disclosure Letter, all Company Products required to comply with applicable Hazardous Material requirements
set forth in the ROHS Directives did so comply. Section 3.13(b) of the Company Disclosure Letter contains a complete and accurate list of all Company Products that rely on an exemption pursuant to the RoHS Directives, and in each case,
identifies the specific exemption relied on. All Company Products comply in all material respects with all applicable customer environmental requirements and specifications. The Hazardous Materials Activities of the Company and its Subsidiaries
prior to the Closing have not resulted in the exposure of any person to a Hazardous Material in a manner which has caused or could reasonably be expected to cause an adverse health effect to any such person. 

(c) Permits. Section 3.13(c) of the Company Disclosure Letter accurately describes all of the Environmental
Permits currently held by the Company and its Subsidiaries, and the listed Environmental Permits are all of the Environmental Permits necessary for the continued conduct of any Hazardous Material Activity of the Company or any Subsidiary as such
activities are currently being conducted. All such Environmental Permits are valid and in full force and effect. The Company and its Subsidiaries have complied in all material respects with all covenants and conditions of such Environmental Permits
which is or has been in force with respect to their Hazardous Materials Activities. 
 (d) Environmental
Litigation. No Legal Proceeding is pending, or to the knowledge of the Company, threatened, concerning or relating to any Environmental Permit or any Hazardous Materials 

  
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Activity of the Company or any Subsidiary relating to the business, or any Leased Real Property, and neither the Company nor any Subsidiary has received any written information request from any
Governmental Entity pursuant to Environmental Law. 
 (e) Environmental Liabilities. The Company is not aware of
any fact or circumstance, which would reasonably be expected to result in any environmental Liability that would be material to the Company and its Subsidiaries, taken as a whole. Neither the Company nor any of its Subsidiaries has entered into any
Contract that may require it to guarantee, reimburse, pledge, defend, hold harmless or indemnify any other Person with respect to liabilities arising out of Environmental Laws or the Hazardous Materials Activities of the Company or any Subsidiary.

 (f) Reports and Records. The Company has made available to Parent all material records in the Company’s
possession concerning the Hazardous Materials Activities of the Company and all Environmental Permits, notices of non-compliance or violation of Environmental Laws, and all environmental audits and environmental assessments. The Company and its
Subsidiaries have complied in all material respects with all environmental disclosure obligations imposed by applicable law with respect to this transaction. 
 3.14 Brokers’ and Finders’ Fees; Fees and Expenses. 
 (a)
Except for fees payable to the Company Financial Advisor as set forth in engagement letter between the Company and the Company Financial Advisor, dated February 15, 2012 (the “Engagement Letter”), a true, correct and complete
version of which has been made available by the Company to Parent, neither the Company nor any affiliate of the Company is obligated for the payment of any fees or expenses of any investment banker, broker, adviser or similar party in connection
with the origin, negotiation or execution of this Agreement or in connection with the Merger or any other transaction contemplated by this Agreement, and Parent will not incur any liability, either directly or indirectly, to any such investment
banker, broker, advisor or similar party as a result of this Agreement, the Merger or any act or omission of the Company, any of its affiliates or any of their respective directors, officers, employees, stockholders or agents. 

(b) A good faith estimate, as of the date hereof, of the fees and expenses of any financial adviser and legal counsel retained by the
Company expected to be incurred by the Company or any of its Subsidiaries in connection with the negotiation and effectuation of the terms and conditions of this Agreement and the transactions contemplated hereby (such estimate of fees and expenses
to be provided for the period through and including the consummation of the transactions contemplated hereby), including the fees and expenses payable pursuant to the Engagement Letter, is set forth on Section 3.14 of the Company
Disclosure Letter. 
 3.15 Transactions with Affiliates. Except as set forth in the SEC Reports or compensation
or other employment arrangements in the ordinary course, there are no transactions, agreements, arrangements or understandings between the Company or any of its Subsidiaries, on the one hand, and any Affiliate (including any officer or director)
thereof, but not including any wholly owned Subsidiary of the Company, on the other hand, required to be disclosed in the SEC Reports. 

  
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 3.16 Employee Benefit Plans and Compensation. 

(a) Schedule. Section 3.16(a)(i) of the Company Disclosure Letter contains an accurate and complete list of
each Company Employee Plan and each Employee Agreement with a current Employee, in each case pursuant to which the Company and any ERISA Affiliate has, or is reasonably expected to have, any future liability or obligation (contingent or otherwise).

 (b) Documents. The Company and each ERISA Affiliate has made available to Parent (i) correct and complete
copies of all documents embodying each Company Employee Plan and each Employee Agreement including, without limitation, all amendments thereto and all related trust documents, (ii) the three most recent annual reports (Form Series 5500 and
all schedules, audit reports and financial statements attached thereto), if any, required under ERISA or the Code in connection with each Company Employee Plan, (iii) if the Company Employee Plan is funded, the most recent annual and periodic
accounting of Company Employee Plan assets, (iv) the most recent summary plan description together with the summary(ies) of material modifications thereto, if any, required under ERISA with respect to each Company Employee Plan, (v) all
written agreements and contracts relating to each Company Employee Plan, including administrative service agreements and group insurance contracts, (vi) all communications material to any Employee or Employees relating to any Company Employee
Plan and any proposed Company Employee Plan, in each case, relating to any amendments, terminations, establishments, increases or decreases in benefits, acceleration of payments or vesting schedules or other events which would result in any material
liability to the Company and its Subsidiaries, taken as a whole, (vii) all material correspondence to or from any governmental agency within the last six years relating to any Company Employee Plan, (viii) all model COBRA forms and related
notices utilized within the last eighteen months, (ix) all current policies pertaining to fiduciary liability insurance covering the fiduciaries for each Company Employee Plan, (x) all nondiscrimination tests and related reports and
summaries for each Company Employee Plan for the three most recent plan years, (xi) all registration statements, annual reports (Form 11-K and all attachments thereto) and prospectuses prepared in connection with each Company Employee
Plan, and (xii) all current IRS determination or opinion letters, as applicable, issued with respect to each Company Employee Plan. 
 (c) Employee Plan Compliance. 
 (i) The Company and each ERISA
Affiliate has performed all material obligations required to be performed by them under, is not in default or violation in any material respect of, and the Company has no knowledge of any material default or violation by any other party to, any
Company Employee Plan, and each Company Employee Plan has been registered, established and maintained in all material respects in accordance with its terms and in material compliance with all applicable Legal Requirements, including, but not limited
to, ERISA or the Code, except where any failure to perform, any default or violation, or any failure to comply has not had, nor reasonably could be expected to have, a Material Adverse Effect. 

(ii) Any Company Employee Plan intended to be qualified under Section 401(a) of the Code and each trust intended to qualify under
Section 501(a) of the Code has either applied for, prior to the expiration of the requisite period under applicable Treasury Regulations or IRS pronouncements, or obtained a favorable determination, notification, advisory and/or opinion
letter, as applicable, as to its qualified status from the IRS or still has a remaining period of time under applicable Treasury Regulations or 

  
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IRS pronouncements in which to apply for such letter and to make any amendments necessary to obtain a favorable determination. 

(iii) No “prohibited transaction,” within the meaning of Section 4975 of the Code or Sections 406 and 407 of ERISA,
and not otherwise exempt under Section 408 of ERISA, has occurred with respect to any Company Employee Plan that is not curable without any material liability to the Parent, the Company or any of its Subsidiaries. 

(iv) There are no actions, suits or claims pending or, to the knowledge of the Company, threatened or reasonably anticipated (other than
routine claims for benefits under fully insured Company Employee Plans) against any Company Employee Plan or against the assets of any Company Employee Plan. 
 (v) Each Company Employee Plan can be amended, terminated, or otherwise discontinued after the Effective Time, in accordance with its terms, without any material Liability to Parent, the Company or any of
its Subsidiaries (other than ordinary administrative expenses). 
 (vi) There are no audits, inquiries or proceedings pending
or to the knowledge of the Company, threatened by the IRS, DOL, or any other Governmental Entity with respect to any Company Employee Plan. Neither the Company nor any ERISA Affiliate is subject to any penalty or Tax with respect to any Company
Employee Plan under Section 502(i) of ERISA or Sections 4975 through 4980 of the Code. 
 (vii) The Company and each
ERISA Affiliate have timely made all contributions and other payments required by and due under the terms of each Company Employee Plan, except where failure to do so could not reasonably be expected to result in any material Liability to the
Parent, or to the Company and its Subsidiaries, taken as a whole. 
 (d) No Pension Plan. Within the last six
years, neither the Company nor any ERISA Affiliate has ever maintained, established, sponsored, participated in, or contributed to (i) any Pension Plan subject to Part 3 of Subtitle B of Title I of ERISA, Title IV of ERISA
or Section 412 of the Code, or (ii) or any International Employee Plan that is not account-based with individual participant accounts, and that is designed to accumulate or accrue a benefit, annuity payment or a cash balance that a service
provider of the Company could draw upon at a specific age, retirement or following separation from service. 
 (e) No
Self-Insured Plan. Except as set forth in Section 3.16(e) of the Company Disclosure Letter, neither the Company nor any ERISA Affiliate has within the last six years maintained, established, sponsored, participated in or
contributed to any self-insured plan that provides benefits to employees (including any such plan pursuant to which a stop-loss policy or contract applies). 
 (f) No VEBA; MEWA. Within the last six years, neither the Company nor any ERISA Affiliate has ever maintained, established, sponsored, participated in or contributed to (i) any
“funded welfare plan” within the meaning of Section 419 of the Code, nor (ii) any multiple employer welfare arrangement, as defined under Section 3(40)(A) of ERISA (without regard to Section 514(b)(6)(B) of ERISA),
established or maintained for the purpose of offering or providing welfare plan benefits to the employees of two or more employers (including one or more self-employed individuals), or to their beneficiaries. 

(g) Collectively Bargained, Multiemployer and Multiple-Employer Plan. At no time has the Company or any ERISA Affiliate
contributed to or been obligated to contribute to any multiemployer 

  
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plan (as defined in Section 3(37) of ERISA). Neither the Company nor any ERISA Affiliate has at any time within the last six years maintained, established, sponsored, participated in or
contributed to any multiple employer plan or any plan described in Section 413 of the Code. 
 (h) No Post-Employment
Obligations. Except as set forth in Section 3.16(h) of the Company Disclosure Letter, no Company Employee Plan or Employee Agreement provides, or reflects or represents any liability to provide, post-termination or retiree life
insurance, health or other employee welfare benefits to any Person for any reason, except as may be required by COBRA or other applicable statute, and neither the Company nor any ERISA Affiliate has ever represented, promised or contracted (whether
in oral or written form) to any Employee (either individually or to Employees as a group) or any other Person that such Employee(s) or other Person would be provided with post-termination or retiree life insurance, health or other employee welfare
benefits, except to the extent required by COBRA or other applicable statute. 
 (i) Effect of Transaction. Except
as set forth in Section 3.16(i) of the Company Disclosure Letter, and except as expressly required or provided by this Agreement, neither the execution and delivery of this Agreement nor the consummation of the transactions contemplated
hereby (either alone or in connection with any other reasonably foreseeable event, contingent or otherwise) or any termination of employment or service in connection therewith, will constitute an event under any Company Employee Plan or Employee
Agreement that would (i) result in any payment (including severance, golden parachute, bonus or otherwise), becoming due to any Employee, (ii) result in any forgiveness of indebtedness, (iii) materially increase any benefits otherwise
payable by the Company or any ERISA Affiliate or (iv) result in the acceleration of the time of payment or vesting of any such benefits (including with regard to Company Options), except as required under Section 411(d)(3) of the Code.

 (j) Employment Matters. The Company and to the knowledge of the Company, each of its Subsidiaries, is in
compliance in all material respects with all applicable foreign, federal, state and local Legal Requirements respecting employment, employment practices, terms and conditions of employment, worker classification, tax withholding, prohibited
discrimination, prohibited harassment, equal employment, fair employment practices, meal and rest periods, immigration status, employee safety and health, wages (including overtime wages), compensation, and hours of work, and in each case, with
respect to Employees: (i) has withheld and reported all amounts required by law or by agreement to be withheld and reported with respect to wages, salaries and other payments to Employees, (ii) is not liable for any arrears of wages,
severance pay or any Taxes or any penalty for failure to comply with any of the foregoing, and (iii) is not liable for any payment to any trust or other fund governed by or maintained by or on behalf of any governmental authority, with respect
to unemployment compensation benefits, social security or other benefits or obligations for Employees (other than routine payments to be made in the normal course of business and consistent with past practice). There are no actions, suits, claims or
administrative matters pending, threatened, or, to the Company’s knowledge, reasonably anticipated against the Company, any of its Subsidiaries, or any of their Employees relating to any Employee, Employee Agreement or Company Employee Plan.
There are no pending, threatened, or to the Company’s knowledge, reasonably anticipated claims or actions against Company, any of its Subsidiaries, any Company trustee or any trustee of any Subsidiary under any worker’s compensation policy
or long-term disability policy. Neither the Company nor any Subsidiary is party to a conciliation agreement, consent decree or other agreement or order with any federal, state, or local agency or governmental authority with respect to employment
practices. The services provided by each of the Company’s, each Subsidiary’s and their ERISA Affiliates’, Employees are terminable at the will of the Company and its ERISA Affiliates. Section 3.16(j) of the Company
Disclosure Letter lists all liabilities of the Company to any Employee, that result from the termination by the Company, Parent or any of its Subsidiaries of such Employee’s employment or provision of services, a change of control of the

  
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Company, or a combination thereof. Neither the Company nor any of its Subsidiaries has any Liability material to the Company and its Subsidiaries, taken as a whole, with respect to any
misclassification of: (i) any Person as an independent contractor rather than as an employee, (ii) any employee leased from another employer, or (iii) any employee currently or formerly classified as exempt from overtime wages.
Section 3.16(j) of the Company Disclosure Letter contains a table setting forth the name, hiring date, annual salary, commissions, bonus, accrued but unpaid vacation balances, and exempt/nonexempt status of each current employee of the
Company and each of its Subsidiaries as of the date hereof. To the Knowledge of the Company, no employee listed on Section 3.16(j) of the Company Disclosure Letter has notified the Company of an intention to terminate his or her
employment for any reason, other than in accordance with the employment arrangements provided for in this Agreement. 
 (k)
Labor; WARN. No strike, labor dispute, slowdown, concerted refusal to work overtime, or work stoppage against the Company or any of its Subsidiaries is pending, or to the knowledge of the Company, threatened or reasonably anticipated.
The Company has no knowledge of any activities or proceedings of any labor union to organize any Employees. There are no actions, suits, claims, labor disputes or grievances pending, threatened, or reasonably anticipated relating to any labor
matters involving any Employee, including charges of unfair labor practices. Neither the Company nor any of its Subsidiaries has engaged in any unfair labor practices within the meaning of the National Labor Relations Act. Neither the Company nor
any of its Subsidiaries is presently, nor has it been in the past, a party to, or bound by, any collective bargaining agreement or union contract with respect to Employees and no collective bargaining agreement is being negotiated by the Company or
any of its Subsidiaries. Neither the Company nor any of its Subsidiaries is a party to, bound by or subject to any labor-related agreement or arrangement with any foreign works council or similar labor body. The consummation of the Merger and the
other transactions contemplated by this Agreement will not entitle any third party (including any works council, labor union or similar labor organization) to any payments under any collective bargaining agreement or any labor agreement or require
the Company or any of its Subsidiaries to consult with any union, works council or similar labor relations body. Neither the Company nor any Subsidiary has taken any action which would constitute a “plant closing” or “mass
layoff” within the meaning of WARN or similar state or local law, issued any notification of a plant closing or mass layoff required by WARN or similar state or local law, or incurred any liability or obligation under WARN or any similar state
or local law that remains unsatisfied. No terminations prior to the Closing would trigger any notice or other obligations under WARN or similar state or local law. 
 (l) International Employee Plan; International Government Entity Program. Each International Employee Plan has been established, maintained and administered in material compliance with its
terms and conditions and in material compliance with the requirements prescribed by any and all statutory or regulatory Legal Requirements that are applicable to such International Employee Plan. No International Employee Plan has unfunded
Liabilities, that as of the Effective Time, will not be offset by insurance or fully accrued. Except as required by law, no condition exists that would prevent the Company, the Surviving Corporation or Parent from terminating or amending any
International Employee Plan at any time for any reason. All contributions required to be made any International Government Entity Program prior to the Closing have been made prior to the Closing. 

3.17 Contracts. 

  
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 (a) Material Contracts. For purposes of this Agreement, “Company
Material Contract” shall mean any of the following to which the Company or any of its Subsidiaries is a party or by which any of their assets are bound: 
 (i) any Contract that, as of the date of this Agreement, is a “material contract” (as such term is defined in Item 601(b)(10) of Regulation S-K of the SEC) with respect to the Company;

 (ii) any Employee Agreement with any officer of the Company or any current Employee of the Company earning an annual base
salary in excess of $165,000, or any Employee Agreement with any member of the Company’s Board of Directors, or any Employee Agreement granting any change of control, severance or termination pay (in cash or equity or otherwise), or any
agreement the benefits of which are contingent or the terms of which are materially altered upon the occurrence of a transaction involving the Company of the nature contemplated hereby (either alone or upon the occurrence of additional or subsequent
events); 
 (iii) any Contract or plan, including, without limitation, any stock option plan, stock appreciation rights plan or
stock purchase plan, or any plan providing similar equity awards, in each case for which any benefits will be increased in any material respect, or for which the vesting of benefits will be accelerated in any material respect, by the occurrence of
any of the transactions contemplated by this Agreement (either alone or upon the occurrence of additional or subsequent events), or for which the value of any of the benefits of which will be calculated on the basis of any of the transactions
contemplated by this Agreement (either alone or upon the occurrence of additional or subsequent events); 
 (iv) any Contract
relating to the sale, issuance, grant, exercise, award, purchase, repurchase or redemption of any shares of its capital stock or other securities or any options, warrants or other rights to purchase or otherwise acquire any shares of capital stock,
other securities or options, warrants or other rights therefor, except for those Contracts conforming to a standard form of agreement under a Company Stock Plan; 
 (v) any agreement currently in effect providing for any indemnification or guaranty (other than any agreement of indemnification entered into in connection with the sale or license of Company Products in
the ordinary course of business pursuant to its standard customer agreement, the form of which has been made available to Parent, or pursuant to substantially similar agreements, or pursuant to VAR agreements entered into in the ordinary course of
business, or pursuant to the Company’s standard form of indemnification agreement for directors and officers or pursuant to the Company Charter Documents); 
 (vi) any Contract required to be disclosed under Section 3.9, any Contract granting any exclusive distribution rights, or any Contract with a Significant Customer providing “most favored
nations” or other preferential pricing terms for Company Products; 
 (vii) any Contract relating to the disposition or
acquisition, after the date of this Agreement, by the Company or any of its Subsidiaries of a material amount of assets or any material ownership interest in any other Person or business unit or enterprise; 

(viii) (A) any Contract between the Company or any of its Subsidiaries and (1) any Significant Customer or (2) any
Significant Supplier, (B) any Contract between the Company or any of its Subsidiaries, on the one hand, and any Government Entity, on the other hand, (C) any Contract between the Company or any of its Subsidiaries, on the one hand, and any
contractor, on the other hand, relating to the 

  
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provision goods or services by the Company or any of its Subsidiaries to such contractor in connection with a Contract between such contractor and Governmental Entity or (D) any material
Contract with any dealer, distributor, OEM (original equipment manufacturer), reseller, sales representative, or developer (the “Business Partners”) under which the Company or any of its Subsidiaries have continuing obligations
material to the Company and its Subsidiaries, taken as a whole, to jointly market any product, technology or service, or any material agreement pursuant to which the Company or any of its Subsidiaries have continuing obligations material to the
Company and its Subsidiaries, taken as a whole, to jointly develop any Intellectual Property or Intellectual Property Rights that will not be owned, in whole or in part, by the Company or any of its Subsidiaries (other than Contracts entered into by
the Company on the Company’s standard form of agreement for Business Partners); 
 (ix) any mortgages, indentures,
guarantees, loans or credit agreements, security agreements or other Contracts relating to the borrowing of money or extension of credit, in each case in excess of $100,000, other than accounts receivables and payables arising or incurred in the
ordinary course of business; 
 (x) any material Lease Document; 

(xi) any material settlement agreement entered into within five (5) years prior to the date of this Agreement, any litigation
“standstill” agreement, or any tolling agreement; 
 (xii) any Contract providing for payments (whether fixed,
contingent or otherwise) by or to it in an aggregate amount of $100,000 or more annually; 
 (xiii) any Contract providing for
the development of any material software, content (including textual content and visual, photographic or graphics content) or Intellectual Property for (or for the benefit or use of) it, or providing for the purchase by or license to (or for the
benefit or use of) it of any software, content (including textual content and visual, photographic or graphics content) or Intellectual Property, which software, content or Intellectual Property is in any manner used or incorporated (or is
contemplated by it to be used or incorporated) in connection with any aspect or element of any product, service or technology of it or is otherwise material to the business of the Company and its Subsidiaries, taken as a whole; 

(xiv) (A) any joint venture or partnership Contract that has involved, or is reasonably expected to involve, a sharing of revenues,
profits, cash flows, expenses or losses with any other party or a payment of royalties to any other party, or (B) any Contract relating to the membership of, or participation by it in, or the affiliation of it with, any industry standards group
or association that materially affects or may affect the Company Intellectual Property; 
 (xv) any Contract with any works
council or labor union, or any collective bargaining agreement or similar Contract; 
 (xvi) any Contract under which the
Company’s entering into this Agreement or the consummation of the Merger or the transactions contemplated thereby shall give rise to, or trigger the application of, any rights of any third party or any obligations of the Company and its
Subsidiaries, in each case material to the Company and its Subsidiaries, taken as a whole, that would come into effect upon the consummation of the Merger; or 

  
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 (xvii) any other Contract the termination or breach of which would be reasonably expected
to have a Material Adverse Effect on the Company and is not disclosed pursuant to clauses (i) through (xvi) above. 

(b) Schedule. Section 3.17(b) of the Company Disclosure Letter sets forth a list of all Company Material
Contracts and the subsections of Section 3.17(a) applicable to such Company Material Contract. A true and complete copy of each Company Material Contract has been made available to Parent. All Company Material Contracts are in written
form and have been duly executed by the parties thereto, and, to the Company’s knowledge, any other party or parties thereto. 
 (c) No Breach. The Company or the applicable Subsidiary has performed all of the material obligations required to be performed by it under each Company Material Contract. Each of the Company
Material Contracts is in full force and effect and enforceable in accordance with their terms. There exists no default or event of default or event, occurrence, condition or act, with respect to the Company or any of its Subsidiaries, or to the
knowledge of the Company, with respect to any other contracting party, which, with the giving of notice, the lapse of time or the happening of any other event or conditions, would reasonably be expected to (i) become a default or event of
default under any Company Material Contract, or (ii) give any third party (A) the right to declare a default or exercise any remedy under any Company Material Contract, or (B) the right to cancel, terminate or modify any Company
Material Contract. Neither the Company nor any of its Subsidiaries has received any written notice regarding (x) any breach of or default under, or (y) any intention to cancel or modify, any Company Material Contract. Except as set forth
in Section 3.17(c) of the Company Disclosure Letter, as to those Contracts listed in Section 3.17(a)(xiii): (a) the consummation of the transactions contemplated by this Agreement will neither violate nor result in the
breach, modification, cancellation, termination, suspension of, or acceleration of any payments with respect to, any such Contract; and (b) following the Closing Date, the Surviving Corporation will be permitted to exercise all of the
Company’s and its Subsidiaries’ rights under such Contracts to the same extent the Company and its Subsidiaries would have been able to had the transactions contemplated by this Agreement not occurred and without the payment of any
additional amounts or consideration other than ongoing fees, royalties or payments which the Company or any of its Subsidiaries would otherwise be required to pay. 
 3.18 Insurance. The Company has made available to Parent correct and accurate copies of all current insurance policies and fidelity bonds material to the business of the Company and its
Subsidiaries, taken as a whole. There is no material claim by the Company or any ERISA Affiliate pending under any of the insurance policies and fidelity bonds covering the assets, business, equipment, properties, operations, employees, officers and
directors of the Company and its Subsidiaries as to which coverage has been questioned, denied or disputed by the underwriters of such policies or bonds. 
 3.19 Disclosure. None of the information supplied or to be supplied by or on behalf of the Company for inclusion or incorporation by reference in the Proxy Statement will, at the time the
Proxy Statement is mailed to the stockholders of the Company, at the time of the Company Stockholders’ Meeting or as of the Effective Time, contain any untrue statement of a material fact or omit to state any material fact required to be stated
therein or necessary in order to make the statements therein, in the light of the circumstances under which they are made, not misleading. The Proxy Statement will comply as to form in all material respects with the provisions of the Exchange Act
and the rules and regulations promulgated by the SEC thereunder. 

  
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Notwithstanding the foregoing, no representation or warranty is made by the Company with respect to statements made or incorporated by reference therein about Parent supplied by Parent for
inclusion or incorporation by reference in the Proxy Statement. 
 3.20 Fairness Opinion. The Company’s
Board of Directors has received an opinion from the Company Financial Advisor, a copy of which has been made available to Parent, that, as of the date of such fairness opinion, the Merger Consideration is fair to the Company’s stockholders from
a financial point of view, and, as of the date hereof, such opinion has not been withdrawn, revoked or modified (the “Fairness Opinion”). 
 3.21 Corporate Documents. The Company has made available to Parent for examination all documents and information listed in the Company Disclosure Letter, including the following:
(a) the minute books containing all records of all proceedings, consents, actions and meetings of the Board of Directors and any committees thereof and stockholders of the Company from and after May 1, 2010; and (b) records setting
forth outstanding Company Options, Company Warrants, Company RSUs and Company Unvested Common Stock. The minutes of the Company’s Board of Directors and committees thereof made available to Parent contain a complete and accurate summary of all
meetings of directors or actions by written consent from May 1, 2010 through the date thereof. 
 3.22 Customers and
Suppliers  
 (a) Customers. Section 3.22(a) of the Company Disclosure Letter sets forth an
accurate and complete list of the 8 largest customers, including distributors of each of the Company’s Voice Quality Assurance and PhoneTag businesses (each, a “Significant Customer”), determined on the basis of sales revenues
by the Company and its Subsidiaries, taken together as a whole, to its customers, for each of the fiscal year ended April 30, 2011, and the nine months ended January 31, 2012. Neither the Company nor any of its Subsidiaries has received
any written, or to the knowledge of the Company, oral notice from any Significant Customer that such customer shall not continue as a customer of the Company (or the Surviving Corporation or Parent) after the Closing or that such customer intends to
terminate or materially modify existing Contracts with the Company (or the Surviving Corporation or Parent). The Company has not had any of its products returned by a Significant Customer except for normal warranty returns consistent with past
history and those returns that would not result in a reversal of any revenue by the Company. 
 (b) Suppliers.
Section 3.22(b) of the Company Disclosure Letter sets forth an accurate and complete list of the 10 largest suppliers of the Company and its Subsidiaries, taken as a whole (each, a “Significant Supplier”), determined on
the basis of costs of items purchased by the Company and its Subsidiaries, taken together as a whole, for each of the fiscal year ended April 30, 2011, and the nine months ended January 31, 2012. As of the date of this Agreement, neither
the Company nor, including distributors, any of its Subsidiaries has received any written, or to the knowledge of the Company, oral notice from any Significant Supplier that such supplier shall not continue as a supplier to the Company (or the
Surviving Corporation or Parent) after the Closing or that such supplier intends to terminate or materially modify existing Contracts with the Company (or the Surviving Corporation or Parent). The Company and its Subsidiaries have access, on
commercially reasonable terms, to all products and services reasonably necessary to carry on the Company’s business, and the Company has no knowledge of any reason why it will not continue to have such access on commercially reasonable terms.

  
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 3.23 Privacy. Except as described in Section 3.23 of the Company
Disclosure Letter, neither the Company nor any of its Subsidiaries has collected any personally identifiable information from any third parties. The Company and each of its Subsidiaries has provided adequate notice of its privacy practices in its
privacy policy or policies which policy or policies (and the periods such policy or policies have been in effect) are set forth in Section 3.23 of the Company Disclosure Letter. The Company’s and its Subsidiaries’ privacy
policies conform, in all material respects, to all of the Company’s and its Subsidiaries’ contractual commitments to their Customers and applicable laws. With respect to all personal and user information described in this
Section 3.23, the Company and its Subsidiaries have at all times taken all steps reasonably necessary (including, without limitation, implementing and monitoring compliance with adequate measures with respect to technical and physical
security) to ensure that the information is protected against loss and against unauthorized access, use, modification, disclosure or other misuse. To the knowledge of the Company, there has been no unauthorized access to or other misuse of that
information or breaches of the Company’s or any of its Subsidiaries’ privacy policies. 
 3.24 Takeover
Statutes and Rights Plans. The Board of Directors of the Company has taken all actions so that the restrictions contained in Section 203 of Delaware Law applicable to a “business combination” (as defined in such
Section 203), and any other similar Legal Requirement, will not apply to Parent during the pendency of this Agreement, including the execution, delivery or performance of this Agreement and the consummation of the Merger and the other
transactions contemplated hereby. The Company does not have in effect any “poison pill” or similar plan or agreement which could have a dilutive or otherwise adverse effect on Parent as a result of consummation of the transactions
contemplated hereby. 
 ARTICLE IV 
 REPRESENTATIONS AND WARRANTIES OF PARENT 
 AND MERGER SUB 

Parent and Merger Sub represent and warrant to the Company as follows: 

4.1 Organization. Each of Parent and Merger Sub is (i) duly organized, validly existing and in good standing under
the laws of the State of Delaware, (ii) has the requisite corporate power and authority to conduct its business as it is presently being conducted and to own, lease or operate its respective properties and assets and (iii) is duly
qualified or licensed to do business and in good standing as a foreign corporation in each jurisdiction in which the character or location of its assets or properties (whether owned, leased or licensed) or the nature of its business makes such
qualification or licensing necessary, except where the failure to be so qualified or licensed to do business and to be in good standing would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect on Parent.

 4.2 Authority; No Conflict; Necessary Consents. 

  
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 (a) Authority. Each of Parent and Merger Sub has all requisite corporate power
and authority to enter into this Agreement and to consummate the transactions contemplated hereby. The execution and delivery of this Agreement and the consummation of the transactions contemplated hereby have been duly authorized by all necessary
corporate action on the part of the Parent and Merger Sub, and no further action is required on the part of Parent and Merger Sub to authorize the execution and delivery of this Agreement or to consummate the Merger and the other transactions
contemplated hereby, subject only to the filing of the Certificate of Merger pursuant to Delaware Law. This Agreement has been duly executed and delivered by Parent and Merger Sub and, assuming due execution and delivery of this Agreement by the
Company, constitutes the valid and binding obligations of Parent, enforceable against each of Parent and Merger Sub in accordance with its terms. 
 (b) No Conflict. The execution and delivery by Parent and Merger Sub of this Agreement and the consummation of the transactions contemplated hereby, will not (i) conflict with or
violate any provision of their respective certificates of incorporation or bylaws, or (ii) subject to compliance with the requirements set forth in Section 4.2(b), conflict with or violate any material Contract or Legal Requirement
applicable to Parent or Merger Sub or by which Parent or Merger Sub or any of their respective properties or assets (whether tangible or intangible) is bound or affected; except, in the case of each of the preceding clauses (i) and (ii), for
any conflict or violation which would not materially adversely affect the ability of the parties hereto to consummate the Merger within the time frame in which the Merger would otherwise be consummated in the absence of such conflict or violation.

 (c) Necessary Consents. No consent, approval, order, authorization, registration, declaration or filing with
any Governmental Entity, or any third party, is required to be made or obtained by Parent or Merger Sub in connection with the execution and delivery of this Agreement or the consummation of the transactions contemplated hereby, except for
(i) the Necessary Consents; and (ii) such consents, waivers, approvals, orders, authorizations, registrations, declarations and filings which, if not obtained or made, would not materially and adversely affect the ability of Parent and
Merger Sub to consummate the Merger within the time frame in which the Merger would otherwise be consummated in the absence of the need for such consent, approval, order, authorization, registration, declaration or filing. To Parent’s
knowledge, and assuming the accuracy of all financial information provided by the Company to Parent, no filing is required to be made or obtained by Parent or Merger Sub in connection with the execution and delivery of this Agreement or the
consummation of the transactions contemplated hereby under any foreign antitrust or competition law or by any foreign antitrust or competition authority. 
 4.3 Availability of Consideration. Parent will have available to it upon the consummation of the Merger, sufficient capital resources to pay the aggregate Merger Consideration, aggregate
Option Consideration and aggregate RSU Consideration and to consummate all of the transactions contemplated by this Agreement. 

4.4 Stock Ownership. As of the date hereof, neither Parent nor Merger Sub beneficially owns any shares of the
Company’s capital stock. Neither Parent nor Merger Sub, nor any of their “affiliates” or “associates,” has been an “interested stockholder” of the Company at any time within three (3) years of the date hereof,
as those terms are used in Section 203 of the Delaware Law. 
 4.5 No Prior Merger Sub Operations.

  
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Merger Sub was formed solely for the purpose of effecting the Merger and has not engaged in any business activities or conducted any operations other than in connection with the transactions
contemplated hereby. 
 4.6 Disclosure. None of the information supplied or to be supplied by or on behalf of
Parent and Merger Sub for inclusion or incorporation by reference in the Proxy Statement, will, at the time the Proxy Statement is mailed to the stockholders of Company, the time of the Stockholders’ Meeting or as of the Effective Time, contain
any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary in order to make the statements therein, in the light of the circumstances under which they are made, not misleading. The Proxy
Statement will comply as to form in all material respects with the provisions of the Exchange Act and the rules and regulations promulgated by the SEC thereunder. Notwithstanding the foregoing, no representation or warranty is made by Parent with
respect to statements made or incorporated by reference therein about the Company supplied by the Company for inclusion or incorporation by reference in the Proxy Statement. 
 ARTICLE V 
 CONDUCT BY THE COMPANY PRIOR TO THE EFFECTIVE TIME

 5.1 Conduct of Business by the Company. 

(a) Ordinary Course. During the period from the date of this Agreement and continuing until the earlier of the termination
of this Agreement pursuant to its terms or the Effective Time, the Company and each of its Subsidiaries shall, except as otherwise expressly required by this Agreement (or set forth in Section 5.1 of the Company Disclosure Letter) or to
the extent that Parent shall otherwise consent in writing, (i) carry on its business in the usual, regular and ordinary course in substantially the same manner as heretofore conducted and in compliance with all applicable Legal Requirements,
(ii) pay its Liabilities, debts and Taxes when due and pay or perform its other obligations when due, in each case subject to good faith disputes over such Liabilities, debts or Taxes, (iii) notify and give Parent the opportunity to
participate, at its sole expense, in the defense or settlement of any litigation to which the Company is a party, (iv) preserve intact its present business organization, (v) use its commercially reasonable efforts to keep available the
services of its Key Employees and other current employees necessary or advisable for the conduct of the Company’s business, (vi) use its commercially reasonable efforts to preserve its relationships with customers, suppliers, distributors,
consultants, licensors, licensees and others with which it has business dealings and (vii) perform all of the obligations required to be performed by it under the Termination Agreement. 

(b) Required Consent. Without limiting the generality of Section 5.1(a), except as permitted by the terms of
this Agreement (or set forth in Section 5.1 of the Company Disclosure Letter), or to the extent that Parent shall otherwise consent in writing, during the period from the date hereof and continuing until the earlier of the termination of
this Agreement pursuant to its terms or the Effective Time, the Company shall not do any of the following, and shall not permit any of its Subsidiaries to do any of the following: 

(i) amend or change the Company Charter Documents; 

  
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 (ii) acquire, or agree to acquire by merging or consolidating with, or by purchasing any
assets or equity securities of, or by any other manner, any business or corporation, partnership, association or other business organization or division thereof, or other acquisition or agreement to acquire any assets or any equity securities that
are material, individually or in the aggregate, to the business of the Company; 
 (iii) enter into any Contract, agreement in
principle, letter of intent, memorandum of understanding or similar agreement with respect to any joint venture, strategic partnership or alliance; 
 (iv) declare, set aside or pay any dividend on, or other distribution (whether in cash, stock or property) in respect of, any of the Company’s or any of its Subsidiaries’ capital stock, or
purchase, redeem or otherwise acquire any of the Company’s capital stock or any other securities of the Company or its Subsidiaries or any Company Option, Company Warrant, calls or rights to acquire any such shares or other securities, except
for repurchases from, and forfeitures by, Employees following their termination pursuant to the terms of their pre-existing stock option or purchase agreements and restricted stock award and restricted stock unit award agreements; 

(v) split, combine or reclassify any of the Company’s or any of its Subsidiaries’ capital stock; 

(vi) (A) materially increase or decrease the compensation or fringe benefits payable or to become payable to any Employee (except
for normal increases or decreases of cash compensation to current non-officer Employees in the ordinary course of business consistent with past practice) by the Company or any of its Subsidiaries, whether orally or in writing, (B) except as set
forth on Schedule 5.1(b)(vi)(B), make any promise, commitment or payment, whether orally or in writing, of any bonus payable or to become payable to any Employee, (C) adopt, change or terminate, whether orally or in writing, any severance,
change of control, termination or bonus plan, policy or practice applicable to any Employee, (D) enter, whether orally or in writing, into any employment, severance, termination, change of control or indemnification agreement or any agreements
the benefits of which are contingent or the terms of which are materially altered upon the occurrence of a transaction involving the Company of the nature contemplated hereby (either alone or upon the occurrence of additional or subsequent events),
(E) adopt, terminate or materially amend any Company Employee Plan or collective bargaining agreement, except as may be required by applicable Legal Requirement, (F) incur any liability or obligation to any of its officers, directors or
stockholders, except for normal and customary compensation and expense allowances payable to officers and directors in the ordinary course of its business consistent with its past practices, or (G) forgive, whether orally or in writing, any
loan from the Company or any of its Subsidiaries to any Employee; 
 (vii) enter into, amend, modify, terminate or grant a
consent with respect to any Company Material Contract, or waive, release or assign any material rights or claims thereunder, other than in the ordinary course of business consistent with past practice; 

(viii) (A) enter into a customer Contract that provides for (or is reasonably expected to provide for) revenues in excess of $250,000
annually and contains any material non-standard terms, including but not limited to, provisions for unpaid future deliverables, non-standard service requirements or future royalty payments other than in the ordinary course of business consistent
with past practice, or any material change in the manner in which it extends discounts, credits or warranties to customers or otherwise deals with its customers, or (B) enter into any reseller or distributor Contract that

  
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provides for (or is reasonably expected to provide for) revenues in excess of $250,000 annually, in each case, other than in the ordinary course of business consistent with past practice;

 (ix) make any change in accounting methods, except as required by GAAP or applicable Legal Requirements; 

(x) enter into any capital lease or other debt or equity financing transaction or enter into any agreement in connection with any such
transaction; 
 (xi) undertake any material restructuring activities, including any material reductions in force, lease
terminations, restructuring of contracts or similar actions; 
 (xii) sell, lease, license, encumber or otherwise dispose of
any business lines or any properties or assets (tangible or intangible), except for sales, leases, licenses or dispositions of property or assets which are not material, individually or in the aggregate, to the business of the Company or the
licenses of current Company Products, in each case, in the ordinary course of business and in a manner consistent with past practice; 
 (xiii) enter into any agreement to purchase or sell any interest in real property, grant any security interest in any real property, enter into any lease, sublease, license or other occupancy agreement
with respect to any real property or alter, amend, modify, violate or terminate any of the terms of any Lease Documents; 

(xiv) make any loan or extend credit to any Person other than in the ordinary course of business and consistent with past practice;

 (xv) adopt or change any Tax accounting method or Tax election, enter into any closing agreement in respect of Taxes, settle
or compromise any Tax claim or assessment, extend or waive the limitation period applicable to any Tax claim or assessment or file any material Tax Return or any amended Tax Return; 

(xvi) make any expenditure, or enter into any transaction or commitment exceeding $100,000 individually or $250,000 in the aggregate,
other than capital expenditures in the ordinary course of business consistent with past practice; 
 (xvii) other than as
required pursuant to Section 2.6(b) hereof or pursuant to written Contracts existing as of the date hereof that have been made available to Parent, accelerate or release any vesting condition to the right to exercise any Company Option, Company
Warrant or other right to purchase or otherwise acquire any shares of the Company’s capital stock, or accelerate or release any right to repurchase shares of capital stock upon the stockholder’s termination of employment or services or
pursuant to any right of first refusal; 
 (xviii) pay or discharge any Lien or other encumbrance on any of its assets or
properties, or pay or discharge any of its obligations or liabilities, in each case that was not either shown on the Company Balance Sheet or incurred in the ordinary course of its business consistent with its past practices after the date of the
Company Balance Sheet in an amount not in excess of $100,000 individually, or $250,000 in the aggregate; 

  
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 (xix) terminate the employment of any officer or key employee, or terminate a material
number of employees; 
 (xx) commence or settle any material litigation; 

(xxi) make any material revaluation of any of its assets, including, without limitation, writing down the value of capitalized
inventory, long term or short-term investments, fixed assets, goodwill, intangible assets, deferred tax assets, or writing off notes or accounts receivable except as required by GAAP; 

(xxii) cancel or terminate without a reasonable substitute policy therefor any material insurance policy naming the Company as a
beneficiary or a loss payee; 
 (xxiii) issue, deliver, sell, authorize, pledge or otherwise encumber any shares of capital
stock, Voting Debt or any securities convertible into shares of capital stock or Voting Debt, or subscriptions, rights, warrants or options to acquire any shares of capital stock or Voting Debt or any securities convertible into shares of capital
stock or Voting Debt, or enter into other agreements or commitments of any character obligating it to issue any such securities or rights, other than issuances of Company Common Stock upon the exercise of Company Options or Company Warrants existing
on the date hereof in accordance with their present terms; 
 (xxiv) enter into any Contracts containing, or otherwise subject
Parent or the Surviving Corporation to, any non-competition, exclusivity or other material restrictions on the Company or the Surviving Corporation or Parent, or any of their respective businesses, following the Closing; or 

(xxv) take, commit, or agree in writing or otherwise to take, any of the actions described in Sections 5.1(b)(i) through
Section 5.1(b)(xxiv) hereof. 
 5.2 Procedures for Requesting Parent Consent. If the Company shall
desire to take an action which would be prohibited pursuant to Section 5.1(b) hereof without the written consent of Parent, prior to taking such action the Company may request such written consent by sending an e-mail or facsimile to
each of the following individuals, and may not take such action until such consent in writing has been received from either of the following individuals: 
 Nuance Communications, Inc. 
 1 Wayside Road 

Burlington, MA 01803 
 Attention: Senior Vice President Corporate Development 
 and: 

Wilson Sonsini Goodrich & Rosati 
 Professional Corporation 
 1700 K Street NW 

Washington, D.C. 20006-3817 
 Attention: Robert D. Sanchez, Esq. 

  
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 ARTICLE VI 
 ADDITIONAL AGREEMENTS 
 6.1 Proxy Statement. 

(a) As soon as practicable following the date off this Agreement, the Company shall prepare and file with the SEC the Proxy Statement.
The Company shall use its commercially reasonable efforts to cause the Proxy Statement to be mailed to the stockholders of the Company as promptly as practicable after the date hereof. No filing of, or amendment or supplement to, the Proxy Statement
will be made by the Company without providing Parent a reasonable opportunity to review and comment thereon. If at any time prior the Company Stockholders’ Meeting any information relating to the Company or Parent, or any of their respective
Affiliates, directors or officers, should be discovered by the Company or Parent which should be set forth in an amendment or supplement to the Proxy Statement, so that either such document would not include any misstatement of a material fact or
omit to state any material fact necessary to make the statements therein, in light of the circumstances under which they were made, not misleading, the party which discovers such information shall promptly notify the other Party hereto and an
appropriate amendment or supplement describing such information shall be promptly filed with the SEC and, to the extent required by Law, disseminated to the stockholders of the Company. The Company shall notify Parent promptly of the receipt of any
comments from the SEC or the staff of the SEC and of any request by the SEC or the staff of the SEC for amendments or supplements to the Proxy Statement or for additional information and shall supply Parent with copies of (i) all correspondence
between it or any of its Representatives, on the one hand, and the SEC or the staff of the SEC, on the other hand, with respect to the Proxy Statement or the transactions contemplated by this Agreement. 

6.2 Meeting of Company Stockholders; Board Recommendation. 

(a) Meeting of Company Stockholders. The Company will take all action necessary in accordance with Delaware Law, the rules
of Nasdaq, its Charter Documents and its Contracts and agreements with its stockholders to duly give notice of, convene and hold a meeting of its stockholders, promptly following the mailing of the Proxy Statement to such stockholders, for the
purpose of considering and taking action with respect to the Company Stockholder Approval (the “Company Stockholders’ Meeting”) to be held as promptly as practicable, and in any event (to the extent permissible under applicable
law) within thirty (30) days after the mailing of the Proxy Statement to the Company’s stockholders. Subject to Section 6.3(d), the Company will use commercially reasonable efforts (including by engaging a proxy solicitor) to
solicit from its stockholders proxies in favor of the Company Stockholder Approval and will take all other action necessary or advisable to secure the vote or consent of its stockholders for the Company Stockholder Approval. Notwithstanding anything
to the contrary contained in this Agreement, the Company may adjourn or postpone the Company Stockholders’ Meeting to the extent necessary (i) to ensure that any necessary supplement or amendment to the Proxy Statement is provided to its
stockholders in advance of a vote on the adoption of this Agreement, or (ii) if, as of the time for which the Company Stockholders’ Meeting is originally scheduled (as set forth in the Proxy Statement), there are insufficient shares of
Company Stock represented (either in person or by proxy) to constitute a quorum necessary to conduct the business of such Company Stockholders’ Meeting. The Company shall ensure that the Company Stockholders’ Meeting is called, noticed,
convened, held and conducted, and that all proxies solicited by it in connection with the 

  
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Company Stockholders’ Meeting are solicited in compliance with Delaware Law, the rules of Nasdaq, the Company Charter Documents, the Company’s Contracts and agreements with its
stockholders, and all other applicable Legal Requirements. Without the prior written consent of Parent, adoption of this Agreement (including adjournment of the Company Stockholders’ Meeting, if necessary, if a quorum is present, to solicit
additional proxies if there are not sufficient votes in favor of adoption of this Agreement), is the only matter which the Company shall propose to be acted on by the Company’s stockholders at the Company Stockholders’ Meeting. 

(b) Board Recommendation. Except to the extent expressly permitted by Section 6.3(d): (i) the Board of
Directors of the Company shall recommend that its stockholders vote in favor of the adoption of this Agreement at the Company Stockholders’ Meeting, (ii) the Proxy Statement shall include (A) a statement to the effect that the Board
of Directors of the Company has unanimously recommended that the Company’s stockholders vote in favor of the adoption of this Agreement at the Company Stockholders’ Meeting, and (B) the Fairness Opinion, and (iii) neither the
Board of Directors of the Company nor any committee thereof shall withdraw, amend or modify, or publicly propose or resolve to withdraw, amend or modify, in a manner adverse to Parent, the recommendation of its Board of Directors that the
Company’s stockholders vote in favor of the adoption of this Agreement. 
 6.3 Alternative Transaction
Proposals. 
 (a) No Solicitation. The Company agrees that it shall not, and will cause its Subsidiaries
not to, permit or authorize any of its or any of its Subsidiaries’ officers, directors (or affiliates of any such officers or directors), employees, affiliates, investment bankers, attorneys, accountants, or other agents, advisers or
representatives (collectively, “Representatives”) to, directly or indirectly: (i) solicit, initiate, seek, knowingly encourage or facilitate, support or induce any inquiry with respect to, or the making, submission or
announcement of, any Alternative Transaction Proposal; (ii) participate or otherwise engage in any discussions or negotiations regarding, or furnish to any person any non-public information or grant access to the Company’s books, records
or personnel with respect to, or take any other action (except to the extent specifically permitted pursuant to Section 6.3(d)) to facilitate any inquiries or the making of any proposal that constitutes or would reasonably be expected to
lead to, any Alternative Transaction Proposal (except to provide notification of or disclose the existence of the provisions of this Section 6.3(a)); (iii) grant any person a waiver or release under any standstill or similar
agreement with respect to any class of equity security of the Company or any of its Subsidiaries (which provisions the Company will, and will cause its Subsidiaries to, use commercially reasonable efforts to enforce), or approve a transaction
(including any person becoming an “interested stockholder” under Section 203 of the Delaware Law); (iv) approve, endorse or recommend any Alternative Transaction Proposal (except to the extent specifically permitted pursuant to
Section 6.3(d)); or (v) enter into any letter of intent or similar document or any contract, agreement or commitment (whether binding or not) contemplating or otherwise relating to any Alternative Transaction Proposal or transaction
contemplated thereby. The Company will, and will cause its Subsidiaries and its and their Representatives to, immediately cease any and all existing activities, discussions or negotiations with any third parties conducted heretofore with respect to
any Alternative Transaction Proposal, and, upon Parent’s request, shall request the prompt return or destruction of all confidential information previously furnished to any Person with which the Company, its Subsidiaries or its or their
Representatives have engaged in any such activities within the twelve (12) month period preceding the date hereof. Any breach of the foregoing provisions of this Section 6.3(a) by any of the Company’s Subsidiaries or its or
their Representatives shall be deemed to be a breach by the Company. 

  
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 (b) Notification of Unsolicited Alternative Transaction Proposals. As promptly
as practicable (but in no event more than twenty-four (24) hours) after receipt by the Company, any of its Subsidiaries or its or their Representatives of any Alternative Transaction Proposal or any request for non-public information or any
expression of interest or inquiry that would reasonably be expected to lead to an Alternative Transaction Proposal, the Company shall provide Parent with written notice of (A) the material terms and conditions of such Alternative Transaction
Proposal, request, expression of interest or inquiry, (B) the identity of the Person or group making any such Alternative Transaction Proposal, request, expression of interest or inquiry, and (C) a copy of all material written materials
provided by or on behalf of such Person or group in connection with such Alternative Transaction Proposal, request, expression of interest or inquiry. In addition, the Company shall provide Parent as promptly as practicable with written notice
setting forth all such information as is reasonably necessary to keep Parent currently informed in all material respects of the status and details (including substantive modifications or proposed substantive modifications) of any such Alternative
Transaction Proposal, request, expression of interest or inquiry (including any negotiations contemplated by Section 6.3(c)(ii)) and shall promptly provide Parent a copy of all written materials (including those provided by e-mail or
otherwise in electronic format) amending any material terms and conditions subsequently provided by or to it in connection with such Alternative Transaction Proposal, request, expression of interest or inquiry. The Company shall provide Parent with
forty-eight (48) hours prior notice of any meeting of its Board of Directors at which its Board of Directors would reasonably be expected to consider any Alternative Transaction Proposal, including to consider whether such Alternative
Transaction Proposal is a Superior Proposal. 
 (c) Superior Proposal. Notwithstanding anything to the contrary
contained in Section 6.3(a), if, prior to the time that Company Stockholder Approval has been obtained, the Company receives an unsolicited, bona fide written Alternative Transaction Proposal from a third party which is determined to be,
or which the Company’s Board of Directors has in good faith concluded (following the receipt of advice from and consultation with its outside legal counsel and the Company Financial Adviser of national standing) is reasonably likely to become,
a Superior Proposal, the Company may then take the following actions, but only if: (i) the Company’s Board of Directors determines in good faith, after receiving advice from and consultation with its outside legal counsel, that the failure
to do so would be inconsistent with its fiduciary obligations to its stockholders under Delaware Law; (ii) the Company has given Parent prior written notice of its intention to take any of the following actions; and (iii) the Company shall
have previously complied with the provisions of this Section 6.3: 
 (i) furnish non-public information to the
third party making such Alternative Transaction Proposal, provided that (A) the Company shall have first received from such third party an executed confidentiality agreement containing customary limitations on the use and disclosure
of all non-public written and oral information furnished to such third party on the Company’s behalf, the terms of which are at least as restrictive as the terms contained in the Confidentiality Agreement, which confidentiality agreement shall
not include any provision having the actual or purported effect of restricting the Company from fulfilling its obligations under this Agreement or the Confidentiality Agreement, and (B) contemporaneously with furnishing any such non-public
information to such third party, the Company furnishes such non-public information to Parent (to the extent such non-public information has not been previously so furnished); and 

(ii) engage in discussions or negotiations with the third party with respect to the Alternative Transaction Proposal. 

  
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 (d) Change of Recommendation. Notwithstanding Section 6.2(b), at
any time prior to the Company Stockholder Approval, the Board of Directors of the Company may, solely in response to a Superior Proposal or an Intervening Event, make a Change of Recommendation and, in the case of a Superior Proposal or an
Intervening Event after which Parent does not timely deliver a Continuation Notice terminate this Agreement in accordance with Section 8.1(h), if all of the following conditions in clauses (i) through (v) are met: 

(i) in the case of a Superior Proposal, such Superior Proposal has not been withdrawn and continues to be a Superior Proposal;

 (ii) the Company shall have (A) delivered to Parent written notice (a “Change of Recommendation
Notice”) at least five (5) Business Days prior to publicly effecting such Change of Recommendation in response to a Superior Proposal or an Intervening Event (and, if applicable, of its intention to terminate this Agreement in response
to a Superior Proposal) which shall state expressly (1) that the Company has received a Superior Proposal or determined the existence of an Intervening Event, (2) the material terms and conditions of the Superior Proposal and the identity
of the Person or group making the Superior Proposal or, in the case of an Intervening Event, describe in reasonable detail the cause and factors constituting such Intervening Event, and (3) that the Company intends to effect a Change of
Recommendation and the manner in which it intends to do so; (B) provide to Parent a copy of all materials and information delivered or made available to the Person or group making the Superior Proposal (to the extent not previously delivered or
made available to Parent), and (C) during the aforementioned five (5) Business Day period, if requested by Parent, engaged in good faith negotiations to amend this Agreement in such a manner that the Superior Proposal would no longer be a
Superior Proposal or, in the case of an Intervening Event, obviates the need for a Change of Recommendation; 
 (iii) Parent
shall not have, within the aforementioned five (5) Business Day period, made an offer that the Company’s Board of Directors has in good faith determined (after the receipt of advice from and consultation with its outside legal counsel and
the Company Financial Advisor) results in the Alternative Transaction Proposal that had been determined to be a Superior Proposal no longer being a Superior Proposal or, in the case of an Intervening Event, addresses the basis for a Change of
Recommendation; 
 (iv) the Board of Directors of the Company has concluded in good faith, after receipt of advice from and
consultation with its outside legal counsel, that, in light of such Superior Proposal or Intervening Event and after considering any adjustments or negotiations pursuant to the preceding clause (ii), that the Company’s Board of
Directors’ failure to effect a Change of Recommendation would be inconsistent with its fiduciary obligations to the stockholders of the Company under Delaware Law; and 
 (v) the Company shall have previously complied with the provisions set forth in Section 6.2 or this Section 6.3. 

(e) Continuing Obligation Regarding Company Stockholders’ Meeting. Notwithstanding anything to the contrary contained
in this Agreement, the obligation of the Company to call, give notice of, convene and hold the Company Stockholders’ Meeting shall not be limited or otherwise affected by the commencement, disclosure, announcement or submission to it of any
Alternative Transaction Proposal, or by any Change of Recommendation; provided, however, that in the event of a Change of Recommendation in response to an Intervening Event, Parent must notify the Company, within five (5) Business
Days after such Change of Recommendation (such notice, (a “Continuation Notice”) that it wishes 

  
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the Board of Directors of the Company to submit this Agreement to the stockholders of the Company in accordance with Section 6.2(a) for the purpose of adopting this Agreement and, if
Parent does not deliver a Continuation Notice within such period, the Company may, subject to and in accordance with Section 8.1(h), terminate this Agreement. 
 (f) Compliance with Tender Offer Rules. Nothing contained in this Agreement shall prohibit the Company or its Board of Directors from taking and disclosing to the stockholders of the Company
a position contemplated by Rules 14d-9 and 14e-2(a) promulgated under the Exchange Act; provided that the content of any such disclosure thereunder shall be governed by the terms of this Agreement. Without limiting the foregoing proviso,
the Company shall not effect a Change of Recommendation unless specifically permitted pursuant to the terms of Section 6.3(d). 
 (g) Specific Performance. The parties hereto agree that irreparable damage would occur if the provisions of this Section 6.3 were not performed in accordance with their specific
terms or were otherwise breached. It is accordingly agreed by the parties hereto that Parent, prior to any valid termination of this Agreement in accordance with Article VIII, shall be entitled to an immediate injunction or injunctions,
without the necessity of proving the inadequacy of money damages as a remedy and without the necessity of posting any bond or other security, to prevent breaches of the provisions of this Section 6.3 and to enforce specifically the terms
and provisions hereof in any court of the United States or any state having jurisdiction, this being in addition to any other remedy to which Parent may be entitled at law or in equity. Without limiting the foregoing, it is understood that any
violation of the restrictions set forth above by any Subsidiary of the Company or any of the Company’s or its Subsidiaries’ Representatives shall be deemed to be a breach of this Agreement by the Company. 

6.4 Confidentiality; Access to Information. 
 (a) Confidentiality. The parties acknowledge that the Company and Parent have previously executed a Confidentiality Agreement, dated as of November 16, 2011 (as amended from time to
time, the “Confidentiality Agreement”), which Confidentiality Agreement will continue in full force and effect in accordance with its terms. 
 (b) Access to Information. Subject to the Confidentiality Agreement and applicable law, the Company shall, and shall cause each of its Subsidiaries to, afford to Parent and to the officers,
employees, accountants, counsel, financial advisers and other representatives of Parent, reasonable access at all reasonable times on reasonable notice during the period prior to the Effective Time to all their properties, books, Contracts,
commitments, assets (including the Company Intellectual Property, but excluding design processes and source code), personnel and records (provided, that such access shall not unreasonably interfere with the business or operations of the
Company and its Subsidiaries) and, during such period and subject to the Confidentiality Agreement and applicable law, the Company shall, and shall cause each of its Subsidiaries to, furnish promptly to Parent (i) a copy of each report,
schedule, registration statement and other document filed by it during such period pursuant to the requirements of federal or state securities laws, and (ii) all other information concerning its business, properties and personnel as Parent may
reasonably request. 
 6.5 Public Disclosure. 

  
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Without limiting any other provision of this Agreement, Parent and the Company will consult with each other before issuing, and provide each other the opportunity to review, comment upon and
concur with, and use commercially reasonable efforts to agree on any press release or public statement with respect to this Agreement and the transactions contemplated hereby, including the Merger, and any Alternative Transaction Proposal and will
not issue any such press release or make any such public statement prior to such consultation and (to the extent practicable) agreement on the content of such statement, except as may be required by applicable Legal Requirements or any listing
agreement with Nasdaq, or any other applicable national or regional securities exchange or market. The initial press release to be issued with respect to the transactions contemplated by this Agreement shall be in the form agreed to by the parties.
In addition, except to the extent disclosed in or consistent with the Proxy Statement in accordance with the provisions of Section 6.1 or prior communications consented to in accordance with this Section 6.5, the Company
shall not issue any press release or otherwise make any public statement or disclosure concerning Parent or its business, financial condition or results of operations without the consent of Parent (which consent shall not be unreasonably withheld or
delayed), except as may be required by applicable Legal Requirement, court process or by obligations pursuant to the Company’s listing agreement with Nasdaq. Notwithstanding the foregoing, this Section 6.5 shall not apply to the
matters set forth in Section 6.2 or Section 6.3. 
 6.6 Regulatory Filings; Reasonable
Efforts. 
 (a) Regulatory Filings. Each of Parent, Merger Sub and the Company shall coordinate and
cooperate with one another and shall each use commercially reasonable efforts to comply with, and shall each refrain from taking any action that would impede compliance with, all Legal Requirements, and as promptly as practicable after the date
hereof, each of Parent, Merger Sub and the Company shall make all filings, notices, petitions, statements, registrations, submissions of information, application or submission of other documents required by any Governmental Entity in connection with
the Merger and the transactions contemplated hereby, including, without limitation any filings required under the Securities Act, the Exchange Act, any applicable state or securities or “blue sky” laws and the securities laws of any
foreign country, or any other Legal Requirement relating to the Merger. Each of Parent and the Company will cause all documents that it is responsible for filing with any Governmental Entity under this Section 6.6(a) to comply in all
material respects with all applicable Legal Requirements. 
 (b) Exchange of Information. Parent, Merger Sub and
the Company each shall promptly supply the other with any information that may be required to effectuate any filings pursuant to Section 6.6(a). Except where prohibited by applicable Legal Requirements, and subject to the Confidentiality
Agreement, each of the Company and Parent shall consult with the other prior to taking a position with respect to any such filing, shall permit the other to review and discuss in advance, and consider in good faith the views of the other in
connection with any analyses, appearances, presentations, memoranda, briefs, white papers, arguments, opinions and proposals before making or submitting any of the foregoing to any Governmental Entity by or on behalf of any party hereto in
connection with any investigations or proceedings in connection with this Agreement or the transactions contemplated hereby (including under any antitrust or fair trade Legal Requirement), coordinate with the other in preparing and exchanging such
information and promptly provide the other and/or its counsel with copies of all filings, presentations or submissions (and a summary of any oral presentations) made by such party with any Governmental Entity in connection with this Agreement or the
transactions contemplated hereby, provided that with respect to any such filing, presentation or submission, each of Parent and the Company need not supply the other (or its counsel) with copies (or in the case of oral presentations, a
summary) to the extent that any law, treaty, rule or regulation of any 

  
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Governmental Entity applicable to such party requires such party or its Subsidiaries to restrict or prohibit access to any such information. 

(c) Notification. Each of Parent, Merger Sub and the Company will notify the other promptly upon the receipt of:
(i) any comments from any officials of any Governmental Entity in connection with any filings made pursuant hereto and (ii) any request by any officials of any Governmental Entity for amendments or supplements to any filings made pursuant
to, or information provided to comply in all material respects with, any Legal Requirements. Whenever any event occurs that is required to be set forth in an amendment or supplement to any filing made pursuant to Section 6.6(a), Parent,
Merger Sub or the Company, as the case may be, will promptly inform the other of such occurrence and cooperate in filing with the applicable Governmental Entity such amendment or supplement. 

(d) Reasonable Efforts. Subject to the express provisions of Section 6.2 and Section 6.3 hereof and
upon the terms and subject to the conditions set forth herein, each of the parties agrees to use commercially reasonable efforts to take, or cause to be taken, all actions, and to do, or cause to be done, and to assist and cooperate with the other
parties in doing, all things necessary, proper or advisable to consummate and make effective, in the most expeditious manner practicable, the Merger and the other transactions contemplated by this Agreement, including using commercially reasonable
efforts to accomplish the following: (i) the taking of all reasonable acts necessary to cause the conditions precedent set forth in Article VII to be satisfied; (ii) the obtaining of all necessary actions or nonactions,
waivers, consents, approvals, orders and authorizations from Governmental Entities and the making of all necessary registrations, declarations and filings (including registrations, declarations and filings with Governmental Entities, if any) and the
taking of all reasonable steps as may be necessary to avoid any suit, claim, action, investigation or proceeding by any Governmental Entity; (iii) the obtaining of all necessary consents, approvals or waivers from third parties; (iv) the
taking of all actions set forth on Schedule 6.6(d); (v) the defending of any suits, claims, actions, investigations or proceedings, whether judicial or administrative, challenging this Agreement or the consummation of the transactions
contemplated hereby; and (vi) the execution or delivery of any additional instruments necessary to consummate the transactions contemplated by, and to fully carry out the purposes of, this Agreement. In connection with and without limiting the
foregoing, the Company and its Board of Directors shall, if any takeover statute or similar Legal Requirement is or becomes applicable to the Merger, this Agreement or any of the transactions contemplated by this Agreement, use commercially
reasonable efforts to ensure that the Merger and the other transactions contemplated by this Agreement may be consummated as promptly as practicable on the terms contemplated by this Agreement and otherwise to minimize the effect of such Legal
Requirement on the Merger, this Agreement and the transactions contemplated hereby. Notwithstanding anything to the contrary herein, if the lessor or licensor under any Lease Document conditions its grant of a consent (including by threatening to
exercise a “recapture” or other termination right) upon, or otherwise requires in response to a notice or consent request regarding this Agreement, the payment of a consent fee, “profit sharing” payment or other consideration
(including increased rent payments), or the provision of additional security (including a guaranty), the Company shall be solely responsible for making all such payments or providing all such additional security and the terms thereof shall be
subject to Parent’s approval. 
 (e) Antitrust Restraints. Notwithstanding anything in this Agreement to the
contrary, it is expressly understood and agreed that: (i) neither Parent nor Merger Sub shall have any obligation to litigate or contest any administrative or judicial action or proceeding or any decree, judgment, injunction or other order,
whether temporary, preliminary or permanent, and (ii) neither Parent nor Merger Sub shall be under any obligation to make proposals, execute or carry out agreements, enter into consent decrees or submit to orders providing for (A) the
sale, divestiture, license or other disposition or holding separate (through the 

  
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establishment of a trust or otherwise) of any assets or categories of assets of Parent or any of its affiliates or the Company or any of its Subsidiaries, (B) the imposition of any
limitation or regulation on the ability of Parent or any of its affiliates to freely conduct their business or own such assets, or (C) the holding separate of the shares of Company capital stock or any limitation or regulation on the ability of
Parent or any of its affiliates to exercise full rights of ownership of the shares of Company capital stock (any of the foregoing, an “Antitrust Restraint”). 
 6.7 Notification of Certain Matters. 
 (a) By the
Company. The Company shall give prompt notice to Parent and Merger Sub in writing of (i) any representation or warranty made by it contained in this Agreement becoming untrue or inaccurate, or any failure of the Company to comply with
or satisfy any covenant, condition or agreement to be complied with or satisfied by it under this Agreement, in each case, such that the conditions set forth in Section 7.2(a) or Section 7.2(b) would not be satisfied;
(ii) the occurrence of any Material Adverse Effect or any event or occurrence that would reasonably be expected to cause the conditions set forth in Article VII not to be satisfied; and (iii) any claim, action, suit,
arbitration, mediation, proceeding or investigation by or before any court, arbitrator or arbitration panel, board or Governmental Entity, initiated by or against it, or known by the Company or any of its Subsidiaries to be threatened against the
Company or any of its Subsidiaries, or any of their respective officers, directors, employees or stockholders in their capacity as such. 
 (b) By Parent. Parent and Merger Sub shall give prompt notice to the Company in writing of any representation or warranty made by it contained in this Agreement becoming untrue or
inaccurate, or any failure of Parent to comply with or satisfy in any material respect any covenant, condition or agreement to be complied with or satisfied by it under this Agreement, in each case, such that the conditions set forth in
Section 7.3(a) or Section 7.3(b) would not be satisfied. 
 6.8 Third-Party Consents. As
soon as practicable following the date hereof, the Company will use commercially reasonable efforts to obtain any consents, waivers and approvals under any of its or its Subsidiaries’ respective Contracts required to be obtained in connection
with the consummation of the transactions contemplated hereby, including all consents, waivers and approvals set forth in Section 3.3(c) of the Company Disclosure Letter. In connection with seeking such consents, waivers and approvals,
the Company shall keep Parent informed of all developments material to the obtaining of such consents, waivers and approvals, and shall, at Parent’s request, include Parent in any discussions or communications with any parties whose consent,
waiver or approval is sought hereunder. Such consents, waivers and approvals shall be in a form reasonably acceptable to Parent. If the Merger does not close for any reason, Parent shall not have any liability to the Company, its stockholders or any
other Person for any costs, claims, liabilities or damages resulting from the Company seeking to obtain such consents, waivers and approvals. As soon as practicable following the date hereof, the Company shall deliver any notices required under any
of its or its Subsidiaries’ respective Contracts that are required to be provided in connection with the consummation of the transactions contemplated hereby. 
 6.9 Employee Matters. 

  
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 (a) Termination of Company Employee Stock Purchase Plans. Prior to the
Effective Time, each of the Company Purchase Plans shall be terminated. 
 (b) Termination of Company 401(k)
Plans. Effective as of no later than the day immediately preceding the Closing Date, each of the Company and any ERISA Affiliate shall terminate any and all Company Employee Plans intended to include a Code Section 401(k) arrangement
(each, a “401(k) Plan”), unless Parent provides written notice to the Company that such 401(k) Plans shall not be terminated. Unless Parent provides such written notice to the Company no later than five Business Days prior to the
Closing Date, the Company shall provide Parent with evidence that such Company 401(k) Plan(s) have been terminated (effective as of no later than the day immediately preceding the Closing Date) pursuant to resolutions of the Board of Directors of
the Company or such ERISA Affiliate, its Subsidiaries or such ERISA Affiliate, as the case may be. The form and substance of such resolutions shall be subject to review and approval by Parent. The Company also shall take such other actions in
furtherance of terminating such Company 401(k) Plan(s) as Parent may reasonably require. In the event that termination of a 401(k) Plan would reasonably be anticipated to trigger liquidation charges, surrender charges or other fees, then such
charges and/or fees shall be the responsibility of the Company and the Company shall take such actions as are necessary to reasonably estimate the amount of such charges and/or fees and provide such estimate in writing to Parent no later than seven
(7) Business Days prior to the Closing Date. 
 (c) Consultation on Employee Communications. The Company will
consult with Parent (and consider in good faith the advice of Parent) prior to sending any notices or other communication materials to its employees regarding the matters described in this Section 6.9 and any other matters relating to
the entry into of this Agreement or the effects of the Merger. 
 (d) New Employment Arrangements. 

(i) Parent may offer certain Employees “at will” employment by Parent and/or a subsidiary of Parent whether as a continuing
employee or as a transitional employee, to be effective as of the Closing Date, upon proof of a legal right to work in the United States. Such “at will” employment will: (i) be set forth in offer letters on Parent’s standard form
(each, an “Offer Letter”), (ii) be subject to and in compliance with Parent’s applicable policies and procedures, including employment background checks and the execution of Parent’s employee proprietary information
agreement, governing employment conduct and performance, (iii) have terms, including the position and salary, equivalent to each such Employee’s current terms of employment with the Company, (iv) credit the Employee’s service
with the Company equivalent to service with Parent for all purposes and (v) supersede any prior express or implied employment agreements, arrangements, representations, or offer letter in effect prior to the Closing Date. 

(ii) Subsequent to the execution of this Agreement, the Company shall not take any action that would reasonably be expected to cause
each continuing employee and transitional employee who accepts their offer of employment with Parent to not sign an Offer Letter or to not cause such Offer Letter to remain in full force and effect through the Closing Date. 

(iii) Prior to any employee of the Company, whose employment with the Company is terminated after the date hereof and prior to the
Closing (each, a “Terminated Employee”), receiving or becoming entitled to receive any severance payment to which such Terminated Employee did not have a legally binding right pursuant to an arrangement that was in place prior to
the date of this Agreement and is disclosed in the Company Disclosure Letter, such Terminated Employee must execute and return a valid release and waiver each in form and substance reasonably satisfactory to Parent (a “Employee

  
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Termination Release”). Prior to any Terminated Employee receiving or becoming entitled to receive any severance payment under the Company’s Amended and Restated Severance Benefit
Plan dated effective December 9, 2011 (the “Severance Benefit Plan”) or the Key Employee Change in Control Severance Benefit Plan (the “Key Employee Severance Benefit Plan”), such Terminated Employee must
execute and return a valid release agreement in the applicable form attached as an exhibit to the Severance Benefit Plan or the Key Employee Severance Benefit Plan, as applicable in accordance with the terms provided by the applicable Plan.

 (e) New Employment Benefits. As of the Closing Date, Parent shall provide the employees of the Company who are
employed by Parent, or a subsidiary of Parent, after the Closing Date (the “Continuing Employees”) with types and levels of employee benefits (excluding any defined benefit pension plan and equity award, change of control and
severance benefits) (“Parent Plans”) that are not materially less favorable (taken as a whole) than those provided to similarly-situated employees of Parent. To the extent such employee benefits are provided through Parent Plans and
not the Company Employee Plans, for purposes of determining eligibility to participate, vesting and entitlement to benefits where length of service is relevant under any Parent Plan and to the extent permitted by applicable law and subject to any
applicable break in service or similar rule, Parent shall provide that the Continuing Employees shall receive service credit under the Parent Plans for their period of service with the Company and its subsidiaries prior to the Closing, except where
doing so would cause a duplication of benefits. If the Closing Date occurs prior to December 31, 2012 and such benefits are provided under Parent Plans, Parent shall use its commercially reasonable efforts to cause any and all pre-existing
condition (or actively at work or similar) limitations, eligibility waiting periods and evidence of insurability requirements under any Parent Plan that is a group health plan to be waived with respect to such Continuing Employees and their eligible
dependents in accordance with applicable laws and shall provide them with credit for any co-payments, deductibles, and offsets (or similar payments) made during the plan year including the Closing Date for the purposes of satisfying any applicable
deductible, out-of-pocket, or similar requirements under any Parent Plan in which they are eligible to participate after the Closing Date. Nothing contained in this Section 6.9 shall alter the “at-will” status of any of the
U.S. employees of the Company or any of its Subsidiaries. 
 (f) No Obligation. Notwithstanding anything to the
contrary set forth in this Agreement, nothing in this Agreement shall be construed as requiring Parent or any of its Subsidiaries to employ any Continuing Employee for any length of time following the Closing Date. Nothing in this Agreement, express
or implied, shall be construed to prevent Parent or any of its Subsidiaries from (i) terminating, or modifying the terms of employment of, any Continuing Employee following the Closing Date or (ii) terminating or modifying to any extent
any Parent Benefit Plan or any other employee benefit plan, program, agreement or arrangement of the Company or that Parent or any of its Subsidiaries, including the Surviving Corporation, may establish or maintain. No covenant or other undertaking
in this Agreement shall constitute an amendment to any employee benefit plan, program, policy or arrangement, and any covenant or undertaking that suggests that an employee benefit plan, program, policy or arrangement will be amended shall be
effective only upon the adoption of a written amendment in accordance with the amendment procedures of such plan, program, policy or arrangement. The provisions of this Section 6.9 are for the sole benefit of the parties to this
Agreement and nothing herein, expressed or implied, is intended or shall be construed to confer upon or give to any Person (including, for the avoidance of doubt, any Continuing Employee), other than the parties hereto and their respective permitted
successors and assigns, any legal or equitable or other rights or remedies under or by reason of any provision of this Agreement. If a party not entitled to enforce this Agreement brings a lawsuit or other action to enforce any provision in this
Agreement as an amendment to such Employee Plan, International Employee Plan or Parent Benefit Plan and that provision is construed to be 

  
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such an amendment despite not being explicitly designated as one in this Agreement, that provision shall lapse retroactively as of its inception, thereby precluding it from having any amendatory
effect. 
 (g) Proprietary Information and Inventions Assignment Agreements. The Company shall use commercially
reasonable efforts to cause each current employee of the Company and its Subsidiaries to have entered into and executed, and each person who becomes an employee of the Company or any Subsidiary after the date hereof and prior to the Closing shall be
required by the Company to enter into and execute, an Employee Proprietary Information Agreement with the Company and each of its Subsidiaries with a stated effective date as of such employee’s first date of employment or service. The Company
shall use commercially reasonable efforts to cause each current consultant or contractor of the Company and its Subsidiaries to have entered into and executed, and each Person who becomes a consultant or contractor of the Company or any Subsidiary
after the date hereof and prior to the Closing shall be required by the Company to enter into and execute, a Consultant Proprietary Information Agreement with the Company and each of its Subsidiaries with a stated effective date as of such
consultant or contractor’s first date of service. 
 6.10 Indemnification. 

(a) Indemnity. From and after the Effective Time, (i) Parent will cause the Surviving Corporation
to fulfill and honor in all respects the obligations of the Company pursuant to and to the extent of any indemnification agreements between the Company and its directors and officers as of immediately prior to the Effective Time (the
“Indemnified Parties”) in effect on the date of this Agreement and listed in Section 6.10(a) of the Company Disclosure Letter, subject to applicable law, and (ii) until the sixth (6th) anniversary of the Effective Time, Parent will cause the
Surviving Corporation to fulfill and honor in all respects the obligations of the Company pursuant to and to the extent of any indemnification provisions under the Company Charter Documents as in effect on the date hereof, in each case, with respect
to claims arising out of acts or omissions occurring at or prior to the Effective Time. Until the sixth (6th) anniversary of the Effective Time or such longer period as is required by applicable Legal Requirements, the Certificate of Incorporation and Bylaws of the Surviving Corporation will contain
provisions with respect to exculpation and indemnification that are at least as favorable to the Indemnified Parties as those contained in the Certificate of Incorporation and Bylaws of the Company as in effect on the date hereof. 

(b) Insurance. From the Effective Time through the sixth anniversary of the Effective Time, Parent will cause the Surviving
Corporation to cause to be maintained directors’ and officers’ liability insurance maintained by the Company covering those persons who are covered by the Company’s directors’ and officers’ liability insurance policy as of
the date hereof for events occurring prior to the Effective Time on terms comparable to those applicable to the current directors and officers of the Company; provided, however, that in no event will the Surviving Corporation be
required to expend in excess of 250% of the annual premium currently paid by the Company for such coverage (and to the extent the annual premium would exceed 250% of the annual premium currently paid by the Company for such coverage, the Surviving
Corporation shall cause to be maintained the maximum amount of coverage as is available for such 250% of such annual premium); and provided, further, that notwithstanding the foregoing, in lieu of the foregoing the Company may obtain a
prepaid “tail” policy under the Company’s existing directors’ and officers’ insurance policy which (i) has an effective term of six (6) years from the Effective Time, (ii) covers those persons who are
currently covered by the Company’s directors’ and officers’ insurance policy in effect as of the date hereof for actions and omissions occurring on or prior to the Effective Time, and (iii) the cost of which does not exceed an
amount equal to 250% of the annual premium currently paid by the Company (and, to the 

  
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extent such costs exceed such amount, only the maximum amount of “tail” coverage as is available for 250% of such annual premium shall be purchased). 

(c) Third–Party Beneficiaries. This Section 6.10 is intended to be for the benefit of, and shall be
enforceable by the Indemnified Parties and their heirs and personal representatives and shall be binding on Parent and the Surviving Corporation and their respective successors and assigns. 

6.11 Section 16 Matters. Prior to the Effective Time, the Company shall take all such steps as may be required (to
the extent permitted under applicable law) to cause any dispositions of Company Stock (including derivative securities with respect to such Company Stock) resulting from the transactions contemplated by Article II of this Agreement by
each individual who is subject to the reporting requirements of Section 16(a) of the Exchange Act with respect to the Company to be exempt under Rule 16b-3 promulgated under the Exchange Act. 

6.12 No Modification of Representations, Warranties, Covenants or Agreements. No information or knowledge obtained in any
investigation or review or notification pursuant to Section 5.1(a) (Conduct of Business by the Company), Section 6.4 (Confidentiality; Access to Information), Section 6.6 (Regulatory Filings;
Reasonable Efforts), Section 6.7 (Notification of Certain Matters) or otherwise shall (a) affect or be deemed to modify any representation or warranty contained herein, the covenants or agreements of the parties hereto or
the conditions to the obligations of the parties hereto under this Agreement, (b) limit or otherwise affect any remedies available to the party conducting such investigation or review or receiving such notice or the obligation of such party to
consummate the Merger, or (c) in the case of the Company, be deemed to amend or supplement the Company Disclosure Letter or prevent or cure any misrepresentations, breach of warranty or breach of covenant or agreement. 

6.13 Financial Statements. The Company agrees that Parent may include the Company Financials in a registration statement
filed by Parent with the SEC or other offering document. The Company shall, if requested by Parent, reasonably cooperate with Parent in causing the Company’s auditors to deliver, and shall use commercially reasonable efforts to take such other
actions as are necessary to enable the Company’s auditors to deliver, any opinions, consents, comfort letters, or other materials necessary or advisable in order for Parent to include the Company Financials in a registration statement or other
offering document or to comply with the reasonable request of an underwriter in connection with a public offering of Parent’s securities (it being understood that Parent shall promptly reimburse the Company for any out-of-pocket costs
associated with the Company’s compliance with this Section 6.13 if the Agreement is terminated). 
 6.14
State Takeover Statutes. The Company’s Board of Directors shall take all actions sufficient to render inapplicable to the Merger, the execution, delivery and performance of this Agreement and the Voting Agreements and the
transactions contemplated hereby and thereby, the provisions of Section 203 of Delaware Law applicable to a “business combination” (as defined in such Section 203 of Delaware Law). 

  
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 ARTICLE VII 
 CONDITIONS TO THE MERGER 
 7.1 Conditions to the Obligations of Each
Party to Effect the Merger. The respective obligations of each party to this Agreement to effect the Merger shall be subject to the satisfaction at or prior to the Closing Date of each of the following conditions: 

(a) Company Stockholder Approval. The Company Stockholder Approval shall have been obtained in accordance with applicable
law at the time of such approval. 
 (b) No Injunctions or Restraints. No Governmental Entity of competent
jurisdiction shall have enacted, issued, promulgated, enforced or entered any statute, rule, regulation, executive order, decree, injunction or other order (whether temporary, preliminary or permanent) which (i) is in effect and (ii) has
the effect of making the Merger illegal or otherwise prohibiting or preventing consummation of the Merger. 
 7.2
Additional Conditions to the Obligations of Parent and Merger Sub. The obligations of Parent and Merger Sub to consummate and effect the Merger shall be subject to the satisfaction at or prior to the Closing Date of each of the
following conditions, any of which may be waived, in writing, exclusively by Parent and Merger Sub: 
 (a) Representations
and Warranties. 
 (i) The representations and warranties of the Company set forth herein (other than in
Section 3.1 (Organization; Standing and Power; Charter Documents; Subsidiaries), Section 3.2 (Capital Structure), Section 3.3(a) and (b)(a)(i) (Authority; No Conflict),
Section 3.14(a) (Broker’s and Finders’ Fees; Fees and Expenses) and Section 3.20 (Fairness Opinion)) shall be true and correct (disregarding, for this purpose, all qualifications and exceptions
contained therein relating to materiality or “Material Adverse Effect”), in each case, both when made and at and as of the Closing Date, as if made at and as of such time (except to the extent expressly made as of an earlier date,
in which case as of such date), except to the extent that the failure of any such representations and warranties to be so true and correct does not have, and would not reasonably be expected to have, individually or in the aggregate, a Material
Adverse Effect on the Company or, in the case any failure of the representations and warranties in Section 3.8(n) (Intellectual Property; Transaction), a Material Adverse Effect on Parent or its Subsidiaries. 

(ii) The representations and warranties of the Company set forth in Section 3.1 (Organization; Standing and Power;
Charter Documents; Subsidiaries), Section 3.3(a) and (b)(a)(i) (Authority; No Conflict), Section 3.14(a) (Brokers’ and Finders’ Fees; Fees and Expenses) and Section 3.20
(Fairness Opinion) shall be true and correct in all material respects, in each case, both when made and at and as of the Closing Date, as if made at and as of such time (except to the extent expressly made as of an earlier date, in which case
as of such date). 
 (iii) The representations and warranties of the Company set forth in Section 3.2 (Capital
Structure) shall be true and correct in all respects (other than inaccuracies that would result in less than a 0.5% increase in the aggregate value of the consideration payable in the merger), in each case, both

  
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when made and at and as of the Closing Date, as if made at and as of such time (except to the extent expressly made as of an earlier date, in which case as of such date). 

(iv) At the Closing, Parent shall have received a certificate to the effect of clauses (i) through (iii) above signed on
behalf of the Company by the Chief Executive Officer and Chief Financial Officer of the Company. 
 (b) Agreements and
Covenants. The Company (i) shall have performed or complied, in all material respects, with all agreements and covenants required by this Agreement to be performed or complied with by it at or prior to the Closing Date (other than
Section 5.1(a)(vii) herein) and (ii) shall have performed or complied with the covenant in Section 5.1(a)(vii), except to the extent that any such failure does not have, and would not be expected to have, individually or
in aggregate, a Material Adverse Effect on the Company; and Parent and Merger Sub shall have received a certificate to such effect signed on behalf of the Company by the Chief Executive Officer and Chief Financial Officer of the Company. 

(c) Material Adverse Effect. No Material Adverse Effect on the Company shall have occurred and be continuing since the date
hereof, whether or not resulting from a breach in any representation, warranty, covenant or agreement in this Agreement; and Parent and Merger Sub shall have received a certificate to such effect signed on behalf of the Company by the Chief
Executive Officer and Chief Financial Officer of the Company. 
 (d) No Litigation. There shall not be any pending
or threatened suit, action or proceeding asserted by any Governmental Entity (i) challenging or seeking to restrain or prohibit the consummation of the Merger or any of the other transactions contemplated by this Agreement, the effect of which
restraint or prohibition if obtained would cause the condition set forth in Section 7.1(b) to not be satisfied, or (ii) seeking to impose an Antitrust Restraint. 

(e) Sarbanes-Oxley Certifications. With respect to any Company SEC Reports filed with the SEC after the date of this
Agreement, neither the principal executive officer nor the principal financial officer of the Company shall have failed to provide the necessary certifications in the form required under Section 302 and Section 906 of SOX. 

(f) Dissenting Shares. There shall not have been delivered to the Company written notices of intent to demand payment
pursuant to Section 262 of the Delaware Law by Dissenting Stockholders with respect to more than ten percent (10%) of the aggregate outstanding shares of Company Common Stock. 

7.3 Additional Conditions to the Obligations of the Company. The obligation of the Company to consummate and effect the
Merger shall be subject to the satisfaction at or prior to the Closing Date of each of the following conditions, any of which may be waived, in writing, exclusively by the Company: 

(a) Representations and Warranties. The representations and warranties of Parent and Merger Sub set forth herein shall be
true and correct (disregarding, for this purpose, all qualifications and exceptions contained therein relating to materiality), in each case, both when made and at and as of the Closing Date, as if made at and as of such time (except to the extent
expressly made as of an earlier date, in which case as of such date), except to the extent that the failure of any such representations and warranties to 

  
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be so true and correct does not materially impede the ability of Parent or Merger Sub to consummate the transactions contemplated by this Agreement in accordance with the terms hereof and
applicable Legal Requirements. The Company shall have received a certificate to such effect signed on behalf of Parent and Merger Sub by a duly authorized officer of Parent. 
 (b) Agreements and Covenants. Parent and Merger Sub shall have performed or complied in all material respects with all agreements and covenants required by this Agreement to be performed or
complied with by it on or prior to the Closing Date; and the Company shall have received a certificate with respect to the foregoing signed on behalf of Parent and Merger Sub by a duly authorized officer of Parent. 

ARTICLE VIII 
 TERMINATION, AMENDMENT AND WAIVER 
 8.1 Termination. This
Agreement may be terminated at any time prior to the Effective Time, by action taken by the terminating party or parties (upon the authorization of such party’s Board of Directors), and except as provided below, whether before or after receipt
of Company Stockholder Approval: 
 (a) by mutual written consent of each of Parent and the Company; 

(b) by either the Company or Parent, if the Merger shall not have been consummated by January 17, 2013 (the “End
Date”); provided, however, that the right to terminate this Agreement under this Section 8.1(b) shall not be available to any party whose action or failure to act has been a principal cause of or resulted in the
failure of the Merger to occur on or before such date; 
 (c) by either the Company or Parent, if any Legal Requirement makes
the consummation of the Merger illegal, or if a Governmental Entity of competent jurisdiction shall have issued an order, decree or ruling or taken any other action (including the failure to have taken an action), in any case having the effect of
permanently restraining, enjoining or otherwise prohibiting the Merger, which order, decree, ruling or other action is final and nonappealable; provided, however, that the right to terminate this Agreement under this
Section 8.1(c) shall not be available to any party whose action or failure to act has been a principal cause of or resulted in such Legal Requirement or action; 
 (d) by either the Company or Parent, if the Company Stockholder Approval shall not have been obtained by reason of the failure to obtain the Company Stockholder Approval at a meeting of the Company
stockholders duly convened therefore or at any adjournment or postponement thereof; 
 (e) by Parent (at any time prior to the
time the Company Stockholder Approval has been obtained), if a Triggering Event with respect to the Company or a material breach of Section 6.2 or Section 6.3 of this Agreement shall have occurred; 

(f) by the Company, upon a breach of any representation, warranty, covenant or agreement on the part of Parent set forth in this
Agreement, or if any representation or warranty of Parent shall have become untrue, in either case such that the conditions set forth in Section 7.3(a) or Section 7.3(b) would not be satisfied as of the time of such breach or
as of the time such representation or warranty shall have become untrue; provided that if such inaccuracy in Parent’s representations and warranties or breach by 

  
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Parent is curable by Parent prior to the End Date through the exercise of reasonable efforts, then the Company may not terminate this Agreement under this Section 8.1(f) prior to
forty-five (45) days following the receipt of written notice from the Company to Parent of such breach, provided that Parent continues to exercise commercially reasonable efforts to cure such breach through such forty-five (45) day
period (it being understood that the Company may not terminate this Agreement pursuant to this paragraph (f) if it shall have materially breached this Agreement or if such breach by Parent is cured within such forty-five (45) day period);

 (g) by Parent, upon a breach of any representation, warranty, covenant or agreement on the part of the Company set forth in
this Agreement, or if any representation or warranty of the Company shall have become untrue, in either case such that the conditions set forth in Section 7.2(a) or Section 7.2(b) would not be satisfied as of the time of such
breach or as of the time such representation or warranty shall have become untrue, provided, that if such inaccuracy in the Company’s representations and warranties or breach by the Company is curable by the Company prior to the End Date
through the exercise of reasonable efforts, then Parent may not terminate this Agreement under this Section 8.1(g) prior to forty-five (45) days following the receipt of written notice from Parent to the Company of such breach,
provided that the Company continues to exercise commercially reasonable efforts to cure such breach through such forty-five (45) day period (it being understood that Parent may not terminate this Agreement pursuant to this
paragraph (g) if it shall have materially breached this Agreement or if such breach by the Company is cured within such forty-five (45) day period); and 
 (h) by the Company, in connection with a Change of Recommendation made in accordance with Section 6.3(d) in which (i) the Company’s Board of Directors shall have determined to accept
or enter into a transaction related to a Superior Proposal that was the subject of such Change in Recommendation, or (ii) (x) the Company’s Board of Directors shall have made such Change of Recommendation as a result of an Intervening
Event, and (y) Parent shall not have timely delivered to the Company a Continuation Notice in accordance with Section 6.3(e); provided, however, that the Company shall not terminate this Agreement pursuant to this
clause (h), and any purported termination pursuant to this clause (h) shall be void and of no force or effect, unless in advance of or concurrently with such termination the Company pays the Termination Fee in the manner provided for in
Section 8.3(b). 
 For the purposes of this Agreement, a “Triggering Event” shall be deemed to have occurred if:
(i) the Company’s Board of Directors or any committee thereof shall have effected a Change of Recommendation; (ii) the Company shall have failed to include in the Proxy Statement mailed to the Company’s stockholders the unanimous
recommendation of its Board of Directors in favor of the adoption of this Agreement; (iii) the Company’s Board of Directors fails to reaffirm (publicly, if so requested) its unanimous recommendation in favor of the adoption of this
Agreement within five (5) calendar days after Parent delivers to the Company a request in writing that such recommendation be reaffirmed; (iv) the Company’s Board of Directors or any committee thereof shall have approved or
recommended, or the Company shall have entered into any letter of intent or other written definitive agreement or Contract regarding any Alternative Transaction Proposal; or (v) a tender or exchange offer relating to its securities shall have
been commenced by a Person unaffiliated with Parent and the Company shall not have sent to its security holders pursuant to Rule 14e-2 promulgated under the Securities Act, within ten (10) Business Days after such tender or exchange offer
is first published or given, a statement disclosing that the Board of Directors of the Company recommends rejection of such tender or exchange offer. 
 8.2 Notice of Termination; Effect of Termination. 

  
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Any termination of this Agreement under, and in accordance with, Section 8.1 above will be effective immediately upon the delivery of a written notice of the terminating party to the
other party hereto. In the event of the termination of this Agreement as provided in Section 8.1, this Agreement shall be of no further force or effect, except (i) as set forth in Section 6.4(a) (Confidentiality),
this Section 8.2, Section 8.3 (Fees) and Article IX (General Provisions), each of which shall survive the termination of this Agreement and (ii) nothing herein shall relieve any party from
liability for any fraud or willful breach of any representation, warranty, covenant or other agreement contained in this Agreement. No termination of this Agreement shall affect the obligations of the parties contained in the Confidentiality
Agreement, all of which obligations shall survive termination of this Agreement in accordance with their terms. 
 8.3
Fees. 
 (a) General. Except as set forth in this Section 8.3, all fees and expenses
incurred in connection with this Agreement and the transactions contemplated hereby shall be paid by the party incurring such expenses whether or not the Merger is consummated. 

(b) Payment. 
 (i) Payment. If this Agreement is terminated by Parent or the Company, as applicable, pursuant to Sections 8.1(b), (d), (e), (g) or (h), the
Company shall promptly, but in no event later than two (2) Business Days after the date of such termination, pay Parent the Termination Fee by wire transfer to an account designated by Parent in immediately available funds; provided,
that in the case of termination under Sections 8.1(b), 8.1(d) or Section 8.1(g): (x) such payment shall be made only if following the date hereof and prior to the termination of this Agreement, there has been
disclosure publicly or to any member of the Board of Directors or any officer of the Company of an Alternative Transaction Proposal with respect to the Company and within twelve (12) months following the termination of this Agreement an
Acquisition of the Company is consummated or the Company enters into a written definitive agreement providing for an Acquisition of the Company (and such Acquisition is subsequently consummated), and (y) such payment shall be made concurrently
with the consummation of such Acquisition of the Company. In no event shall the Company be required to pay the Termination Fee pursuant to this Section 8.3(b)(i) or otherwise, on more than one occasion. 

(ii) The Company acknowledges that the agreements contained in this Section 8.3 are an integral part of the transactions
contemplated by this Agreement, that without these agreements Parent would not have entered into this Agreement, and that any amounts payable pursuant to this Section 8.3 do not constitute a penalty. Upon payment of the Termination Fee
in accordance with this Section 8.3, the Company shall have no further liability to Parent or Merger Sub with respect to this Agreement or the transactions contemplated hereby, except for liability for any fraud or willful breach of any
covenant or agreement contained in this Agreement. If the Company shall fail to pay the Termination Fee when due, the Company shall reimburse Parent for all costs and expenses incurred by Parent or Merger Sub (including fees and expenses of counsel)
in connection with the collection under and enforcement of this Section 8.3, together with interest on the amounts set forth in this Section 8.3(b) at the prime rate of Citibank, N.A., in effect on the date such payment was
required to be made. 
 8.4 Amendment. 

  
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Subject to applicable law, this Agreement may be amended by the parties hereto, by action taken or authorized by their respective Boards of Directors, at any time before or after approval of the
Merger by the stockholders of the Company, provided, that after receipt of Company Stockholder Approval, no amendment shall be made which by law or in accordance with the rules of any relevant stock exchange, including the Nasdaq, requires
further approval by the stockholders of the Company without such further stockholder approval. This Agreement may not be amended except by execution of an instrument in writing signed on behalf of each of Parent, Merger Sub and the Company and duly
approved by the parties’ respective Boards of Directors or a duly designated committee thereof. 
 8.5 Extension;
Waiver. At any time prior to the Effective Time either party hereto, by action taken or authorized by their respective Board of Directors, may, to the extent legally allowed: (i) extend the time for the performance of any of the
obligations or other acts of the other parties hereto, (ii) waive any inaccuracies in the representations and warranties made to such party contained herein or in any document delivered pursuant hereto, and (iii) waive compliance with any
of the agreements or conditions for the benefit of such party contained herein. Any agreement on the part of a party hereto to any such extension or waiver shall be valid only if set forth in an instrument in writing signed on behalf of such party.
Any extension or waiver given in compliance with this Section 8.5 or failure to insist on strict compliance with an obligation, covenant, agreement or condition shall not operate as a waiver of, or estoppel with respect to, any
subsequent or other failure. 
 ARTICLE IX 
 GENERAL PROVISIONS 
 9.1 Non-Survival of Representations and
Warranties. The representations and warranties of the Company, Parent and Merger Sub contained in this Agreement, or any instrument delivered pursuant to this Agreement, shall terminate at the Effective Time, and only the covenants that by
their terms survive the Effective Time and this Article IX shall survive the Effective Time. 
 9.2
Notices. All notices and other communications hereunder shall be in writing and shall be deemed duly given (i) on the date of delivery if delivered personally and/or by messenger service, (ii) on the date of confirmation of
receipt (or, the first Business Day following such receipt if the date is not a Business Day) of transmission by facsimile, or (iii) on the date of confirmation of receipt (or, the first Business Day following such receipt if the date is not a
Business Day) if delivered by a nationally recognized courier service. All notices hereunder shall be delivered as set forth below, or pursuant to such other instructions as may be designated in writing by the party to receive such notice:

 (a) if to Parent or Merger Sub, to: 

  
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 Nuance Communications, Inc. 

1 Wayside Road 

Burlington, MA 01803 
 Attention: Senior Vice President Corporate Development 
 with copies (which shall
not constitute notice) to: 
 Wilson Sonsini Goodrich & Rosati 

Professional Corporation 
 1700 K Street NW 
 Washington, D.C. 20006-3817 

Attention:        Robert D. Sanchez, Esq. 

if to the Company, to: 
 Ditech Networks, Inc. 
 3099 North First Street 

San Jose, CA 95134 
 Attention:  Executive Vice President, Chief Financial Officer and Chief Operating Officer 
 with copies (which shall not constitute notice) to: 
 Cooley LLP 

Hanover Campus 

3175 Hanover Street 
 Palo Alto, CA 94304-1130 

Attention:        Nancy H. Wojtas, Esq. 

9.3 Interpretation; Rule of Construction. When a reference is made in this Agreement to Exhibits, such reference shall be
to an Exhibit to this Agreement unless otherwise indicated. When a reference is made in this Agreement to Sections, such reference shall be to a Section of this Agreement unless otherwise indicated. When a reference is made in this Agreement to
Articles, such reference shall be to an Article of this Agreement unless otherwise indicated. The words “include”, “includes” and “including” when used herein shall be deemed in each case to be followed by the words
“without limitation”. The words “hereof,” “herein” and “hereunder” and words of similar import when used in this Agreement shall refer to this Agreement as a whole and not to any particular provision of this
Agreement. All terms defined in this Agreement shall have the defined meanings when used in any certificate or other document made or delivered pursuant hereto unless otherwise defined therein. The definitions contained in this Agreement are
applicable to the singular as well as the plural forms of such terms and to the masculine as well as to the feminine and neuter genders of such term. 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. References to the Subsidiaries of an entity shall be deemed to include all direct and indirect Subsidiaries of such entity. References to a Person are also to its permitted successors and
assigns. Any agreement, instrument or statute defined or referred to herein or in any agreement or instrument that is referred to herein means such agreement, instrument or statute as from time to time amended, modified or supplemented, including
(in the case of agreements or instruments) by waiver or consent and (in the case of 

  
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statutes) by succession of comparable successor statutes and references to all attachments thereto and instruments incorporated therein. Any dollar thresholds set forth herein shall not be used
as a benchmark for any determination of what is or is not “material” or a “Material Adverse Effect” under this Agreement. The parties hereto agree that they have been represented by legal counsel during the negotiation and
execution of this Agreement and, therefore, waive the application of any law, regulation, holding or rule of construction providing that ambiguities in an agreement or other document shall be construed against the party drafting such agreement or
document. 
 9.4 Counterparts. This Agreement may be executed and delivered (including by facsimile transmission
or by electronic mail with a pdf scanned attachment) in one or more counterparts, and by the different parties hereto in separate counterparts, each of which when executed and delivered shall be deemed to be an original but all of which taken
together shall constitute one and the same agreement. 
 9.5 Entire Agreement; Third-Party Beneficiaries. This
Agreement and the documents and instruments and other agreements among the parties hereto as contemplated by or referred to herein, including the Company Disclosure Letter and other Exhibits hereto (i) constitute the entire agreement among the
parties with respect to the subject matter hereof and supersede all prior agreements and understandings, both written and oral, among the parties with respect to the subject matter hereof, it being understood that the Confidentiality Agreement shall
continue in full force and effect until the Closing and shall survive any termination of this Agreement and (ii) are not intended to confer upon any other Person any rights or remedies hereunder, except as specifically provided, following the
Effective Time, in Section 6.10. 
 9.6 Severability. If any term or other provision of this
Agreement is invalid, illegal or incapable of being enforced by any applicable law or public policy, all other terms and provisions of this Agreement shall nevertheless remain in full force and effect so long as the economic or legal substance of
the transactions contemplated by this Agreement is not affected in any manner materially adverse to any party. Upon such determination that any term or other provision is invalid, illegal or incapable of being enforced, the parties hereto shall
negotiate in good faith to modify this Agreement so as to effect the original intent of the parties as closely as possible in an acceptable manner so that the transactions contemplated by this Agreement are consummated as originally contemplated to
the greatest extent possible. 
 9.7 Other Remedies. Except as otherwise provided herein, any and all remedies
herein expressly conferred upon a party will be deemed cumulative with and not exclusive of any other remedy conferred hereby, or by law or equity upon such party, and the exercise by a party of any one remedy will not preclude the exercise of any
other remedy. The parties hereto agree that irreparable damage would occur in the event that any of the provisions of this Agreement were not performed in accordance with their specific terms or were otherwise breached. It is accordingly agreed
that, prior to the termination of this Agreement in accordance with Article VIII, each party shall be entitled to seek an injunction or injunctions to prevent breaches of this Agreement or to seek to enforce specifically the terms and provisions of
this Agreement in the Court of Chancery of the State of Delaware (or, in the case of any claim as to which the federal courts have exclusive subject matter 

  
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jurisdiction, the Federal Court of the United States of America, sitting in Delaware), this being in addition to any other remedy to which they are entitled at law or equity. 

9.8 Governing Law; Consent to Jurisdiction. This Agreement shall be governed by, and construed in accordance with, the
laws of the State of Delaware. In any action or proceeding between any of the parties arising out of or relating to this Agreement or any of the transactions contemplated by this Agreement, each of the parties hereto: (i) irrevocably and
unconditionally consents and submits, for itself and its property, to the exclusive jurisdiction and venue of the Court of Chancery of the State of Delaware (or, in the case of any claim as to which the federal courts have exclusive subject matter
jurisdiction, the Federal court of the United States of America, sitting in Delaware); (ii) agrees that all claims in respect of such action or proceeding must be commenced, and may be heard and determined, exclusively in the Court of Chancery
of the State of Delaware (or, if applicable, such Federal court); (iii) waives, to the fullest extent it may legally and effectively do so, any objection which it may now or hereafter have to the laying of venue of any such action or proceeding
in the Court of Chancery of the State of Delaware (and, if applicable, such Federal court); and (iv) waives, to the fullest extent permitted by law, the defense of an inconvenient forum to the maintenance of such action or proceeding in the
Court of Chancery of the State of Delaware (or, if applicable, such Federal court). Each of the parties hereto agrees that a final judgment in any such action or proceeding and may be enforced in other jurisdictions by suit on the judgment or in any
other manner provided by law. Each party to this Agreement irrevocably consents to service of process in the manner provided for notices in Section 9.2. Nothing in this Agreement shall affect the right of any party to this Agreement to
serve process in any other manner permitted by law. 
 9.9 Assignment. No party may assign either this Agreement
or any of its rights, interests, or obligations hereunder without the prior written approval of the other parties, except that Parent may assign its rights and delegate its obligations hereunder to its affiliates as long as Parent remains ultimately
liable for all of Parent’s obligations hereunder. Any purported assignment in violation of this Section 9.9 shall be void. Subject to the preceding sentence, this Agreement shall be binding upon and shall inure to the benefit of the
parties hereto and their respective successors and permitted assigns. 
 9.10 Waiver of Jury Trial. EACH PARTY
HERETO ACKNOWLEDGES AND AGREES THAT ANY CONTROVERSY WHICH MAY ARISE UNDER THIS AGREEMENT IS LIKELY TO INVOLVE COMPLICATED AND DIFFICULT ISSUES, AND THEREFORE EACH SUCH PARTY HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY RIGHT SUCH PARTY MAY HAVE
TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT, OR THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT. EACH PARTY CERTIFIES AND ACKNOWLEDGES THAT (A) NO REPRESENTATIVE, AGENT OR
ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER, (B) EACH PARTY UNDERSTANDS AND HAS CONSIDERED THE IMPLICATIONS OF THIS
WAIVER, (C) EACH PARTY MAKES THIS WAIVER VOLUNTARILY AND (D) EACH PARTY HAS BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION 9.10. 

***** 

  
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 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by their
duly authorized respective officers as of the date first written above. 
  

			
	NUANCE COMMUNICATIONS, INC.
		
	By:	 	 /s/ Todd DuChene

		
	Name:	 	 Todd DuChene

		
	Title:	 	 EVP and General Counsel

	
	DIAMOND ACQUISITION CORPORATION
		
	By:	 	 /s/ Todd DuChene

		
	Name:	 	 Todd Duchene

		
	Title:	 	 Secretary

	
	DITECH NETWORKS, INC.
		
	By:	 	 /s/ William J. Tamblyn

		
	Name:	 	 William J. Tamblyn

		
	Title:	 	 EVP/CFO/COO

 ****AGREEMENT AND PLAN OF MERGER****

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