Document:

Registration Rights Agreement

 EXHIBIT 10.32 
  
 EXECUTION VERSION 
  
 SUNGARD DATA SYSTEMS INC. 
  
 $250,000,000 3.750% Senior Notes due 2009 
 $250,000,000 4.875% Senior Notes due 2014 
  
 REGISTRATION RIGHTS AGREEMENT 
  
 January 15, 2004 
  
 Citigroup Global Markets Inc. 
 J.P. Morgan Securities Inc. 
 As Representatives of the Initial Purchasers 
 c/o Citigroup Global Markets Inc. 
 388 Greenwich Street 
 New York, New York 10013 
  
 Ladies and Gentlemen: 
  
 SunGard Data Systems Inc., a corporation organized under the laws of
Delaware (the “Company”), proposes to issue and sell to certain purchasers (the “Initial Purchasers”), for whom you (the “Representatives”) are acting as representatives,
$250,000,000 of its 3.750% Senior Notes due 2009 (the “2009 Notes”) and $250,000,000 of its 4.875% Senior Notes due 2014 (the “2014 Notes” and together with the 2009 Notes, the
“Securities”), upon the terms set forth in the Purchase Agreement between the Company and the Representatives dated as of January 12, 2004 (the “Purchase Agreement”) relating to the initial placement
(the “Initial Placement”) of the Securities. To induce the Initial Purchasers to enter into the Purchase Agreement and to satisfy a condition to your obligations thereunder, the Company agrees with you for your benefit and
the benefit of the holders from time to time of the Securities (including the Initial Purchasers) (each a “Holder” and, collectively, the “Holders”), as follows: 
  
 1. Definitions. Capitalized terms used herein without definition
shall have their respective meanings set forth in the Purchase Agreement. As used in this Agreement, the following capitalized defined terms shall have the following meanings: 
  
 “Act” shall mean the Securities Act of 1933, as amended, and the rules and regulations of the
Commission promulgated thereunder. 
  
 “Affiliate” shall have the meaning specified in Rule 405 under the Act and the terms “controlling” and “controlled” shall have meanings correlative thereto. 
  
 “Broker-Dealer” shall mean any broker or dealer
registered as such under the Exchange Act. 
  
 “Business Day” shall mean any day other than a Saturday, a Sunday or a legal holiday or a day on which banking institutions or trust companies are authorized or obligated by law to close in New York City. 

 “Closing Date” shall mean the date of the first issuance of the Securities.

  
 “Commission” shall mean the U.S.
Securities and Exchange Commission. 
  
 “Deferral
Period” shall have the meaning indicated in Section 4(k)(ii) hereof. 
  
 “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended, and the rules and regulations of the Commission promulgated thereunder. 
  
 “Exchange Offer Registration Period” shall mean the
lesser of (i) the 180-day period following the consummation of the Registered Exchange Offer, exclusive of any period during which any stop order shall be in effect suspending the effectiveness of the Exchange Offer Registration Statement and (ii)
the period ending on the date on which all Exchanging Dealers have sold all Securities held by them. 
  
 “Exchange Offer Registration Statement” shall mean a registration statement of the Company on an appropriate form under the Act
with respect to the Registered Exchange Offer, all amendments and supplements to such registration statement, including post-effective amendments thereto, in each case including the Prospectus contained therein, all exhibits thereto and all material
incorporated by reference therein. 
  
 “Exchanging
Dealer” shall mean any Holder (which may include any Initial Purchaser) that is a Broker-Dealer and elects to exchange for New Securities any Securities that it acquired for its own account as a result of market-making activities or
other trading activities (but not directly from the Company or any Affiliate of the Company) for New Securities. 
  
 “Final Memorandum” shall mean the offering memorandum, dated January 12, 2004, relating to the Securities, including any and all
exhibits thereto and any information incorporated by reference therein as of such date. 
  
 “Holder” shall have the meaning set forth in the preamble hereto. 
  
 “Indenture” shall mean the Indenture relating to the Securities, dated as of January 15, 2004, between the Company and The Bank of
New York, as trustee, as the same may be amended from time to time in accordance with the terms thereof. 
  
 “Initial Placement” shall have the meaning set forth in the preamble hereto. 
  
 “Initial Purchaser” shall have the meaning set forth
in the preamble hereto. 
  
 “Losses” shall
have the meaning set forth in Section 6(d) hereof. 
  
 “Majority Holders” shall mean, on any date, Holders of a majority of the aggregate principal amount of Securities registered under a Registration Statement. 
  
 “Managing Underwriters” shall mean the investment
banker or investment bankers and manager or managers that administer an underwritten offering, if any, under a Registration Statement. 
  

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 “NASD Rules” shall mean the Conduct Rules and the By-Laws of the National
Association of Securities Dealers, Inc. 
  
 “New
Securities” shall mean debt securities of the Company identical in all material respects to the Securities (except that the transfer restrictions shall be modified or eliminated, as appropriate). 
  
 “Prospectus” shall mean the prospectus included in
any Registration Statement (including, without limitation, a prospectus that discloses information previously omitted from a prospectus filed as part of an effective registration statement in reliance upon Rule 430A under the Act), as amended or
supplemented by any prospectus supplement, with respect to the terms of the offering of any portion of the Securities or the New Securities covered by such Registration Statement, and all amendments and supplements thereto, including any and all
exhibits thereto and any information incorporated by reference therein. 
  
 “Purchase Agreement” shall have the meaning set forth in the preamble hereto. 
  
 “Registered Exchange Offer” shall mean the proposed offer of the Company to issue and deliver to the Holders of the Securities
that are not prohibited by any law or policy of the Commission from participating in such offer, in exchange for the Securities, a like aggregate principal amount of the New Securities. 
  
 “Registrable Securities” shall mean (i) Securities other than those that have been (A) registered
under a Registration Statement and disposed of in accordance therewith or (B) distributed to the public pursuant to Rule 144 under the Act or any successor rule or regulation thereto that may be adopted by the Commission and (ii) any New Securities
resale of which by the Holder thereof requires compliance with the prospectus delivery requirements of the Act. 
  
 “Registration Default Damages” shall have the meaning set forth in Section 8 hereof. 
  
 “Registration Statement” shall mean any Exchange
Offer Registration Statement or Shelf Registration Statement that covers any of the Securities or the New Securities pursuant to the provisions of this Agreement, any amendments and supplements to such registration statement, including
post-effective amendments (in each case including the Prospectus contained therein), all exhibits thereto and all material incorporated by reference therein. 
  
 “Securities” shall have the meaning set forth in the preamble hereto. 
  
 “Shelf Registration” shall mean a registration
effected pursuant to Section 3 hereof. 
  
 “Shelf
Registration Period” has the meaning set forth in Section 3(b) hereof. 
  
 “Shelf Registration Statement” shall mean a “shelf” registration statement of the Company pursuant to the provisions of Section 3 hereof which covers some or all of the Securities or
New Securities, as applicable, on an appropriate form under Rule 415 under the Act, or any similar rule that may be adopted by the Commission, amendments and supplements 
  

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 to such registration statement, including post-effective amendments, in each case including the Prospectus contained
therein, all exhibits thereto and all material incorporated by reference therein. 
  
 “Trustee” shall mean the trustee with respect to the Securities under the Indenture. 
  
 “Trust Indenture Act” shall mean the Trust Indenture Act of 1939, as amended, and the rules and regulations of the Commission
promulgated thereunder. 
  
 “underwriter” shall mean any underwriter of Securities in connection with an offering thereof under a Shelf Registration Statement. 
  
 2. Registered Exchange Offer. (a) To the extent not prohibited by applicable law or applicable interpretation of the
Commission, the Company shall prepare and file with the Commission the Exchange Offer Registration Statement with respect to the Registered Exchange Offer. 
  
 (b) Upon the effectiveness of the Exchange Offer Registration Statement, the Company shall promptly commence the Registered Exchange Offer, it being the
objective of such Registered Exchange Offer to enable each Holder electing to exchange Securities for New Securities (assuming that such Holder is not an Affiliate of the Company, acquires the New Securities in the ordinary course of such
Holder’s business, has no arrangements with any person to participate in the distribution of the New Securities and is not prohibited by any law or policy of the Commission from participating in the Registered Exchange Offer) to trade such New
Securities from and after their receipt without any limitations or restrictions under the Act and without material restrictions under the securities laws of a substantial proportion of the several states of the United States. 
  
 (c) In connection with the Registered Exchange Offer, the Company shall:

  
 (i) mail to each Holder a copy of the
Prospectus forming part of the Exchange Offer Registration Statement, together with an appropriate letter of transmittal and related documents; 
  
 (ii) keep the Registered Exchange Offer open for not less than 30 days and not more than 45 days after the date notice thereof is mailed
to the Holders (or, in each case, longer if required by applicable law); 
  
 (iii) if the Company receives notice from an Exchanging Dealer either in the Letter of Transmittal or within 20 days after the consummation of the Registered Exchange Offer that such dealer holds Securities acquired
for the account of such Exchanging Dealer as a result of market-making or other trading activities, use its reasonable best efforts to keep the Exchange Offer Registration Statement continuously effective under the Act, supplemented and amended as
required, under the Act to ensure that it is available for sales of New Securities by Exchanging Dealers during the Exchange Offer Registration Period; 
  

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 (iv) utilize the services of a depositary for the Registered Exchange Offer with an
address in the Borough of Manhattan in New York City, which may be the Trustee or one of its Affiliates; 
  
 (v) permit Holders to withdraw tendered Securities at any time prior to 5:00 p.m., New York time, on the last Business Day on which the
Registered Exchange Offer is open; 
  
 (vi) prior
to effectiveness of the Exchange Offer Registration Statement, provide a supplemental letter to the Commission (A) stating that the Company is conducting the Registered Exchange Offer in reliance on the position of the Commission in Exxon Capital
Holdings Corporation (pub. avail. May 13, 1988), Morgan Stanley and Co., Inc. (pub. avail. June 5, 1991); and (B) including a representation that the Company has not entered into any arrangement or understanding with any person to
distribute the New Securities to be received in the Registered Exchange Offer and that, to the best of the Company’s information and belief, each Holder participating in the Registered Exchange Offer is acquiring the New Securities in the
ordinary course of business and has no arrangement or understanding with any person to participate in the distribution of the New Securities; and 
  
 (vii) comply in all respects with all applicable laws. 
  
 (d) As soon as practicable after the close of the Registered Exchange Offer, the Company shall: 
  
 (i) accept for exchange all Securities tendered and not
validly withdrawn pursuant to the Registered Exchange Offer; 
  
 (ii) deliver or cause to be delivered to the Trustee for cancellation in accordance with Section 4(s) all Securities so accepted for exchange; and 
  
 (iii) cause the Trustee promptly to authenticate and deliver to each Holder of Securities a principal amount
of New Securities equal to the principal amount of the Securities of such Holder so accepted for exchange. 
  
 (e) Each Holder hereby acknowledges and agrees that any Broker-Dealer and any such Holder using the Registered Exchange Offer to participate in a
distribution of the New Securities (x) could not under Commission policy as in effect on the date of this Agreement rely on the position of the Commission in Exxon Capital Holdings Corporation (pub. avail. May 13, 1988) and Morgan Stanley
and Co., Inc. (pub. avail. June 5, 1991), as interpreted in the Commission’s letter to Shearman & Sterling dated July 2, 1993 and similar no-action letters; and (y) must comply with the registration and prospectus delivery requirements
of the Act in connection with any secondary resale transaction, which must be covered by an effective registration statement containing the selling security holder information required by Item 507 or 508, as applicable, of Regulation S-K under the
Act if the resales are of New Securities obtained by such Holder in exchange for Securities acquired by such Holder directly from the Company or one of its Affiliates. Accordingly, each Holder participating in the Registered Exchange Offer shall be
required to represent to the Company that, at the time of the consummation of the Registered Exchange Offer: 
  
 (i) any New Securities received by such Holder will be acquired in the ordinary course of business; 
  

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 (ii) such Holder will have no arrangement or understanding with any person to participate
in the distribution of the Securities or the New Securities within the meaning of the Act; 
  
 (iii) such Holder is not an Affiliate of the Company; 
  
 (iv) if such Holder is not a Broker-Dealer, that it is not engaged in, and does not intend to engage in, the
distribution of the New Securities; 
  
 (v) if
such Holder is a Broker-Dealer, that it will receive the New Securities for its own account in exchange for Securities that were acquired as a result of market-making activities or other trading activities and that it will deliver a prospectus in
connection with any resale of such New Securities; and 
  
 (vi) such Holder is not acting on behalf of any person, who, to its knowledge, could not truthfully make the foregoing representations. 
  
 (f) If any Initial Purchaser determines that it is not eligible to participate in the Registered Exchange Offer with respect to the exchange of Securities
constituting any portion of an unsold allotment, at the request of such Initial Purchaser, the Company shall issue and deliver to such Initial Purchaser or the person purchasing New Securities registered under a Shelf Registration Statement as
contemplated by Section 3 hereof from such Initial Purchaser, in exchange for such Securities, a like principal amount of New Securities. The Company shall use its reasonable best efforts to cause the CUSIP Service Bureau to issue the same CUSIP
number for such New Securities as for New Securities issued pursuant to the Registered Exchange Offer. 
  
 3. Shelf Registration. (a) If (i) due to any change in law, rule, regulation or applicable interpretations thereof by the Commission’s staff,
the Company determines upon advice of its outside counsel that it is not permitted to effect the Registered Exchange Offer as contemplated by Section 2 hereof; (ii) for any other reason the Registered Exchange Offer is not consummated within 210
days of the date hereof; (iii) any Initial Purchaser so requests with respect to Securities that are not eligible to be exchanged for New Securities in the Registered Exchange Offer and that are held by it following consummation of the Registered
Exchange Offer; (iv) any Holder (other than an Initial Purchaser) notifies the Company in writing 20 Business Days after the commencement of the Registered Exchange Offer that is not eligible to participate in the Registered Exchange Offer; or (v)
in the case of any Initial Purchaser that participates in the Registered Exchange Offer or acquires New Securities pursuant to Section 2(f) hereof, such Initial Purchaser does not receive freely tradeable New Securities in exchange for Securities
constituting any portion of an unsold allotment (it being understood that (x) the requirement that an Initial Purchaser deliver a Prospectus containing the information required by Item 507 or 508 of Regulation S-K under the Act in connection with
sales of New Securities acquired in exchange for such Securities shall result in such New Securities being not “freely 
  

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 tradeable;” and (y) the requirement that an Exchanging Dealer deliver a Prospectus in connection with sales of New
Securities acquired in the Registered Exchange Offer in exchange for Securities acquired as a result of market-making activities or other trading activities shall not result in such New Securities being not “freely tradeable”), the Company
shall effect a Shelf Registration Statement in accordance with subsection (b) below. 
  
 (b) (i) The Company shall as promptly as practicable, file with the Commission and shall use its best efforts to cause to be declared effective under the Act, a Shelf Registration Statement relating to the offer and
sale of the Securities or the New Securities, as applicable, by the Holders thereof from time to time in accordance with the methods of distribution elected by such Holders and set forth in such Shelf Registration Statement; provided,
however, that no Holder (other than an Initial Purchaser) shall be entitled to have the Securities held by it covered by such Shelf Registration Statement unless such Holder agrees in writing to be bound by all of the provisions of this
Agreement applicable to such Holder; and provided, further, that with respect to New Securities received by an Initial Purchaser in exchange for Securities constituting any portion of an unsold allotment, the Company may, if permitted
by current interpretations by the Commission’s staff, file a post-effective amendment to the Exchange Offer Registration Statement containing the information required by Item 507 or 508 of Regulation S-K, as applicable, in satisfaction of its
obligations under this subsection with respect thereto, and any such Exchange Offer Registration Statement, as so amended, shall be referred to herein as, and governed by the provisions herein applicable to, a Shelf Registration Statement.

  
 (ii) The Company shall use its best efforts to keep the Shelf
Registration Statement continuously effective, supplemented and amended as required by the Act, in order to permit the Prospectus forming part thereof to be usable by Holders for a period extending from the date the Shelf Registration Statement is
declared effective by the Commission until the earlier of (A) the second anniversary thereof or (B) the date upon which all the Securities or New Securities, as applicable, covered by the Shelf Registration Statement have been sold pursuant to the
Shelf Registration Statement or cease to be outstanding (the “Shelf Registration Period”). The Company shall be deemed not to have used its best efforts to keep the Shelf Registration Statement effective during the Shelf
Registration Period if it voluntarily takes any action that would result in Holders of Securities covered thereby not being able to offer and sell such Securities at any time during the Shelf Registration Period, unless such action is (x) required
by applicable law or otherwise undertaken by the Company in good faith and for valid business reasons (not including avoidance of the Company’s obligations hereunder), including the acquisition or divestiture of assets, and (y) permitted
pursuant to Section 4(k)(ii) hereof. 
  
 (iii) No Holder may
include any of its Securities or New Securities in any Shelf Registration Statement pursuant to this Agreement unless and until such Holder furnishes to the Company, in writing, such information as the Company reasonably requests for inclusion in
any Shelf Registration Statement or any Prospectus included therein. Each Holder as to which any Shelf Registration Statement is being effected agrees to furnish to the Company all information with respect to such Holder necessary to make any
information previously furnished to the Company by such Holder not materially misleading. 
  

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 4. Additional Registration Procedures. In connection with any Shelf Registration Statement and, to
the extent applicable, any Exchange Offer Registration Statement, the following provisions shall apply. 
  
 (a) The Company shall: 
  
 (i) furnish to each of the Representatives, not less than five Business Days prior to the filing thereof with the Commission, a copy of
any Exchange Offer Registration Statement and any Shelf Registration Statement, and each amendment thereof and each amendment or supplement, if any, to the Prospectus included therein (including all documents incorporated by reference therein after
the initial filing) and shall use its reasonable best efforts to reflect in each such document, when so filed with the Commission, such comments as the Representatives reasonably propose; 
  
 (ii) include the information (as may be revised at the
request or requirement of the Commission) set forth in Annex A hereto on the facing page of the Exchange Offer Registration Statement, in Annex B hereto in the forepart of the Exchange Offer Registration Statement in a section setting forth details
of the Exchange Offer, in Annex C hereto in the underwriting or plan of distribution section of the Prospectus contained in the Exchange Offer Registration Statement, and in Annex D hereto in the letter of transmittal delivered pursuant to the
Registered Exchange Offer; 
  
 (iii) if requested
by an Initial Purchaser, include the information required by Item 507 or 508 of Regulation S-K, as applicable, in the Prospectus contained in the Exchange Offer Registration Statement; and 
  
 (iv) in the case of a Shelf Registration Statement, include
the names of the Holders that propose to sell Securities pursuant to the Shelf Registration Statement as selling security holders. 
  
 (b) The Company shall use its best efforts to ensure that: 
  
 (i) any Registration Statement and any amendment thereto and any Prospectus forming part thereof and any amendment or supplement thereto
complies in all material respects with the Act and the rules and regulations thereunder; and 
  
 (ii) any Registration Statement and any amendment thereto does not, when it becomes effective, contain an 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 not misleading. 
  
 (c) The Company shall advise the Representatives, the Holders of Securities covered by any Shelf Registration Statement and any Exchanging Dealer under
any Exchange Offer Registration Statement that has provided in writing to the Company a telephone or facsimile number and address for notices, and, if requested by any Representative or any such 
  

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 Holder or Exchanging Dealer, shall confirm such advice in writing (which notice pursuant to clauses (ii) through (v)
hereof shall be accompanied by an instruction to suspend the use of the Prospectus until the Company shall have remedied the basis for such suspension): 
  
 (i) when a Registration Statement and any amendment thereto has been filed with the Commission and when the Registration Statement or any
post-effective amendment thereto has become effective; 
  
 (ii) of any request by the Commission for any amendment or supplement to the Registration Statement or the Prospectus or for additional information; 
  

(iii) of the issuance by the Commission of any stop order suspending the effectiveness of the Registration Statement or the institution
or threatening of any proceeding for that purpose; 
  
 (iv) of the receipt by the Company of any notification with respect to the suspension of the qualification of the securities included therein for sale in any jurisdiction or the institution or threatening of any proceeding for such purpose;
and 
  
 (v) of the happening of any event that
requires any change in the Registration Statement or the Prospectus so that, as of such date, they (A) do not contain any untrue statement of a material fact and (B) do not omit to state a material fact required to be stated therein or necessary to
make the statements therein (in the case of the Prospectus, in the light of the circumstances under which they were made) not misleading. 
  
 (d) The Company shall use its reasonable best efforts to prevent the issuance of any order suspending the effectiveness of any Registration Statement or
the qualification of the securities therein for sale in any jurisdiction and, if issued, to obtain as soon as possible the withdrawal thereof. 
  
 (e) The Company shall furnish to each Holder of Securities covered by any Shelf Registration Statement, without charge, at least one copy of such Shelf
Registration Statement and any post-effective amendment thereto, including all material incorporated therein by reference, and, if the Holder so requests in writing, all exhibits thereto (including exhibits incorporated by reference therein).

  
 (f) The Company shall, during the Shelf Registration Period,
deliver to each Holder of Securities covered by any Shelf Registration Statement, without charge, as many copies of the Prospectus (including the Preliminary Prospectus) included in such Shelf Registration Statement and any amendment or supplement
thereto as such Holder may reasonably request. The Company consents to the use of the Prospectus or any amendment or supplement thereto by each of the selling Holders of Securities in connection with the offering and sale of the Securities covered
by the Prospectus, or any amendment or supplement thereto, included in the Shelf Registration Statement. 
  

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 (g) The Company shall furnish to each Exchanging Dealer which so requests, without charge, at least one
copy of the Exchange Offer Registration Statement and any post-effective amendment thereto, including all material incorporated by reference therein, and, if the Exchanging Dealer so requests in writing, all exhibits thereto (including exhibits
incorporated by reference therein). 
  
 (h) The Company shall
promptly deliver to each Initial Purchaser, each Exchanging Dealer and each other person required to deliver a Prospectus during the Exchange Offer Registration Period, without charge, as many copies of the Prospectus included in such Exchange Offer
Registration Statement and any amendment or supplement thereto as any such person may reasonably request. The Company consents to the use of the Prospectus or any amendment or supplement thereto by any Initial Purchaser, any Exchanging Dealer and
any such other person that may be required to deliver a Prospectus following the Registered Exchange Offer in connection with the offering and sale of the New Securities covered by the Prospectus, or any amendment or supplement thereto, included in
the Exchange Offer Registration Statement. 
  
 (i) Prior to the
Registered Exchange Offer or any other offering of Securities or New Securities pursuant to any Registration Statement, the Company shall arrange, if necessary, for the qualification of the Securities or the New Securities for sale under the laws of
such jurisdictions as any Holder shall reasonably request and shall maintain such qualification in effect so long as required; provided that in no event shall the Company be obligated to qualify to do business in any jurisdiction where it is not
then so qualified or to take any action that would subject it to service of process in suits, other than those arising out of the Initial Placement, the Registered Exchange Offer or any offering pursuant to a Shelf Registration Statement, in any
such jurisdiction where it is not then so subject, or to subject itself to taxation in respect of doing business in any jurisdiction where it is not now subject. 
  
 (j) The Company shall cooperate with the Holders of Securities to facilitate the timely preparation and delivery of
certificates representing New Securities or Securities to be issued or sold pursuant to any Registration Statement free of any restrictive legends and in such denominations and registered in such names as Holders may request. 
  
 (k) (i) Upon the occurrence of any event contemplated by subsections (c)(ii)
through (v) above, the Company shall use its best efforts to promptly (or within the time period provided for by clause (ii) hereof, if applicable) prepare a post-effective amendment to the applicable Registration Statement or an amendment or
supplement to the related Prospectus or file any other required document so that, as thereafter delivered to Initial Purchasers of the securities included therein, the Prospectus will not include an untrue statement of a material fact or omit to
state any material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading. In such circumstances, the period of effectiveness of the Exchange Offer
Registration Statement provided for in Section 2 shall be extended by the number of days from and including the date of the giving of a notice of suspension pursuant to Section 4(c) to and including the date when the Initial Purchasers, the Holders
of the Securities and any known Exchanging Dealer shall have received such amended or supplemented Prospectus pursuant to this Section. 
  

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 (ii) Upon the occurrence or existence of any pending corporate development or any other material event
that, in the reasonable judgment of the Company, makes it appropriate to suspend the availability of a Shelf Registration Statement and the related Prospectus, the Company shall give notice (without notice of the nature or details of such events) to
the Holders that the availability of the Shelf Registration is suspended and, upon actual receipt of any such notice, each Holder agrees not to sell any Registrable Securities pursuant to the Shelf Registration until such Holder’s receipt of
copies of the supplemented or amended Prospectus provided for in Section 3 hereof, or until it is advised in writing by the Company that the Prospectus may be used, and has received copies of any additional or supplemental filings that are
incorporated or deemed incorporated by reference in such Prospectus. The period during which the availability of the Shelf Registration and any Prospectus is suspended (the “Deferral Period”) shall not exceed 45 days in any
three-month period or 90 days in any twelve-month period. 
  
 (l)
Not later than the effective date of any Registration Statement, the Company shall provide a CUSIP number for the Securities or the New Securities, as the case may be, registered under such Registration Statement and provide the Trustee with printed
certificates for such Securities or New Securities, in a form eligible for deposit with The Depository Trust Company. 
  
 (m) The Company shall comply with all applicable rules and regulations of the Commission and shall make generally available to its security holders an
earnings statement satisfying the provisions of Section 11(a) of the Act as soon as practicable after the effective date of the applicable Registration Statement and in any event no later than 45 days after the end of a 12-month period (or 90 days,
if such period is a fiscal year) beginning with the first month of the Company’s first fiscal quarter commencing after the effective date of the applicable Registration Statement. 
  
 (n) The Company shall cause the Indenture to be qualified under the Trust Indenture Act in a timely manner. 
  
 (o) The Company may require each Holder of securities to be sold pursuant to
any Shelf Registration Statement to furnish to the Company such information regarding the Holder and the distribution of such securities as the Company may from time to time reasonably require for inclusion in such Registration Statement, including
such information requested or required by the Commission. The Company may exclude from such Shelf Registration Statement the Securities of any Holder that unreasonably fails to furnish such information within a reasonable time after receiving such
request. Each Holder as to which Securities are being included in a Shelf Registration Statement agrees to furnish to the Company all information with respect to such Holder necessary to make any information previously furnished to the Company by
such Holder not materially misleading. 
  
 (p) In the case of any
Shelf Registration Statement, the Company shall enter into customary agreements (including, if requested, an underwriting agreement in customary form) and take all other appropriate actions in order to expedite or facilitate the registration or the
disposition of the Securities, and in connection therewith, if an underwriting agreement is entered into, cause the same to contain indemnification provisions and procedures no less favorable than those set forth in Section 6 hereof. 
  

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 (q) In the case of any Shelf Registration Statement, the Company shall: 
  
 (i) subject to the execution of confidentiality agreements
satisfactory to the Company, make reasonably available for inspection by the Holders of Securities to be registered thereunder, any underwriter participating in any disposition pursuant to such Registration Statement, and any attorney, accountant or
other agent retained by the Holders or any such underwriter all relevant financial and other records and pertinent corporate documents of the Company and its subsidiaries; 
  
 (ii) subject to the execution of confidentiality agreements satisfactory to the Company, cause the
Company’s officers, directors, employees, accountants and auditors to supply all relevant information reasonably requested by the Holders or any such underwriter, attorney, accountant or agent in connection with any such Registration Statement
as is customary for similar due diligence examinations; 
  
 (iii) make such representations and warranties to the Holders of Securities or New Securities registered thereunder and the underwriters, if any, in form, substance and scope as are customarily made by issuers to
underwriters in primary underwritten offerings and covering those matters set forth in the Purchase Agreement; 
  
 (iv) obtain opinions of counsel to the Company and updates thereof (which counsel and opinions (in form, scope and substance) shall be
reasonably satisfactory to the Managing Underwriters, if any) addressed to each selling Holder and the underwriters, if any, covering such matters as are customarily covered in opinions requested in underwritten offerings and such other matters as
may be reasonably requested by such Holders and underwriters; 
  
 (v) obtain “comfort” letters and updates thereof from the independent certified public accountants of the Company (and, if necessary, any other independent certified public accountants of any subsidiary of
the Company or of any business acquired by the Company for which financial statements and financial data are, or are required to be, included in the Registration Statement), addressed to each selling Holder of Securities registered thereunder and
the underwriters, if any, in customary form and covering matters of the type customarily covered in “comfort” letters in connection with primary underwritten offerings; and 
  
 (vi) deliver such documents and certificates as may be reasonably requested by the Majority Holders or the
Managing Underwriters, if any, including those to evidence compliance with Section 4(k) and with any customary conditions contained in the underwriting agreement or other agreement entered into by the Company. 
  

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 The actions set forth in clauses (iii), (iv), (v) and (vi) of this paragraph (q) shall be performed at (A) the
effectiveness of such Registration Statement and each post-effective amendment thereto; and (B) each closing under any underwriting or similar agreement as and to the extent required thereunder. 
  
 (r) If a Registered Exchange Offer is to be consummated, upon delivery of the
Securities by Holders to the Company (or to such other person as directed by the Company) in exchange for the New Securities, the Company shall mark, or caused to be marked, on the Securities so exchanged that such Securities are being cancelled in
exchange for the New Securities. In no event shall the Securities be marked as paid or otherwise satisfied. 
  
 (s) The Company shall use its reasonable best efforts if the Securities have been rated prior to the initial sale of such Securities, to confirm such
ratings will apply to the Securities or the New Securities, as the case may be, covered by a Registration Statement. 
  
 (t) In the event that any Broker-Dealer shall underwrite any Securities or participate as a member of an underwriting syndicate or selling group or
“assist in the distribution” (within the meaning of the NASD Rules) thereof, whether as a Holder of such Securities or as an underwriter, a placement or sales agent or a broker or dealer in respect thereof, or otherwise, the Company shall
assist such Broker-Dealer in any filings required to be made with the NASD. 
  
 (u) The Company shall use its best efforts to take all other steps necessary to effect the registration of the Securities or the New Securities, as the case may be, covered by a Registration Statement. 
  
 5. Registration Expenses. The Company shall bear all expenses incurred
in connection with the performance of its obligations under Sections 2, 3 and 4 hereof and, in the event of any Shelf Registration Statement, will reimburse the Holders for the reasonable fees and disbursements of one firm or counsel (which shall
initially be Weil, Gotshal & Manges LLP, but which may be another nationally recognized law firm experienced in securities matters designated by the Majority Holders) to act as counsel for the Holders in connection therewith, and, in the
case of any Exchange Offer Registration Statement, will reimburse the Initial Purchasers for the reasonable fees and disbursements of counsel acting in connection therewith. Each Holder shall pay all underwriting discounts and commissions and
transfer taxes, if any, relating to the sale or disposition of such Holder’s Registrable Securities pursuant to a Shelf Registration Statement. 
  
 6. Indemnification and Contribution. (a) The Company agrees to indemnify and hold harmless each Holder of Securities or New Securities, as the case
may be, covered by any Registration Statement, each Initial Purchaser and, with respect to any Prospectus delivery as contemplated in Section 4(h) hereof, each Exchanging Dealer, the directors, officers, employees, Affiliates and agents of each such
Holder, Initial Purchaser or Exchanging Dealer and each person who controls any such Holder, Initial Purchaser or Exchanging Dealer within the meaning 
  

 13 

 of either the Act or the Exchange Act against any and all losses, claims, damages or liabilities, joint or several, to
which they or any of them may become subject under the Act, the Exchange Act or other federal or state statutory law or regulation, at common law or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof)
arise out of or are based upon any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement as originally filed or in any amendment thereof, or in any preliminary Prospectus or the Prospectus, or in any
amendment thereof or supplement thereto, or arise out of or are based upon the omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein (in the case of any preliminary
Prospectus or the Prospectus, in the light of the circumstances under which they were made)not misleading, and agrees to reimburse each such indemnified party, as incurred, for any legal or other expenses reasonably incurred by it in connection with
investigating or defending any such loss, claim, damage, liability or action; provided, however, that the Company will not be liable in any such case to the extent that any such loss, claim, damage or liability (i) arises out of or is
based upon any such untrue statement or alleged untrue statement or omission or alleged omission made therein in reliance upon and in conformity with written information furnished (or not furnished in the case of any omission or alleged omission) to
the Company by or on behalf of the party claiming indemnification specifically for inclusion therein, (ii) results from the use of the Prospectus during a period in which the use of the Prospectus has been suspended; provided that the Holder
received prior notice of such suspension in accordance with Section 4(c) or (iii) if the Holder sold Registrable Securities to a person as to whom there was not sent or given prior notice to the written confirmation of such sale, a copy of the
Prospectus, in any case where such delivery is required under the Act. This indemnity agreement shall be in addition to any liability that the Company may otherwise have. 
  
 The Company also agrees to indemnify as provided in this Section 6(a) or contribute as provided in Section 6(d) hereof to
Losses of each underwriter, if any, of Securities or New Securities, as the case may be, registered under a Shelf Registration Statement, their directors, officers, employees, Affiliates or agents and each person who controls such underwriter on
substantially the same basis as that of the indemnification of the Initial Purchasers and the selling Holders provided in this Section 6(a) and shall, if requested by any Holder, enter into an underwriting agreement reflecting such agreement, as
provided in Section 4(p) hereof. 
  
 (b) Each Holder of securities
covered by a Registration Statement (including each Initial Purchaser that is a Holder, in such capacity) severally and not jointly agrees to indemnify and hold harmless the Company, each of its directors, each of its officers who signs such
Registration Statement and each person who controls the Company within the meaning of either the Act or the Exchange Act, to the same extent as the foregoing indemnity from the Company to each such Holder, but only (i) with reference to written
information relating to such Holder furnished (or not furnished in the case of any omission or alleged omission) to the Company by or on behalf of such Holder specifically for inclusion in the documents referred to in the foregoing indemnity, (ii)
that which results from the use of the Prospectus during a period in which the use of the Prospectus has been suspended; provided that the Holder received prior notice of such suspension in accordance with Section 4(c) or (iii) that which
results if the Holder sold Registrable Securities to a person as to whom there was not sent or given prior notice to the written confirmation of such sale, a copy of the Prospectus, in any case where such delivery is required under the Act. This
indemnity agreement will be in addition to any liability that any such Holder may otherwise have. 
  

 14 

 (c) Promptly after receipt by an indemnified party under this Section 6 or notice of the commencement of
any action, such indemnified party will, if a claim in respect thereof is to be made against the indemnifying party under this Section, notify the indemnifying party in writing of the commencement thereof; but the failure so to notify the
indemnifying party (i) will not relieve it from liability under paragraph (a) or (b) above unless and to the extent it did not otherwise learn of such action and such failure results in the forfeiture by the indemnifying party of rights and
defenses; and (ii) will not, in any event, relieve the indemnifying party from any obligations to any indemnified party other than the indemnification obligation provided in paragraph (a) or (b) above. The indemnifying party shall be entitled to
appoint counsel (including local counsel) of the indemnifying party’s choice at the indemnifying party’s expense to represent the indemnified party in any action for which indemnification is sought (in which case the indemnifying party
shall not thereafter be responsible for the fees and expenses of any separate counsel, other than local counsel if not appointed by the indemnifying party, retained by the indemnified party or parties except as set forth below); provided,
however, that such counsel shall be reasonably satisfactory to the indemnified party. Notwithstanding the indemnifying party’s election to appoint counsel (including local counsel) to represent the indemnified party in an action, the
indemnified parties shall have the right to employ one separate counsel (plus local counsel), and the indemnifying party shall bear the reasonable fees, costs and expenses of such separate counsel if (i) the use of counsel chosen by the indemnifying
party to represent the indemnified party would present such counsel with a conflict of interest; (ii) the actual or potential defendants in, or targets of, any such action include both the indemnified party and the indemnifying party and the
indemnified parties shall have reasonably concluded (upon advise of counsel) that there may be legal defenses available to it and/or other indemnified parties that are different from or additional to those available to the indemnifying party; (iii)
the indemnifying party shall not have employed counsel reasonably satisfactory to the indemnified parties to represent the indemnified party within a reasonable time after notice of the institution of such action; or (iv) the indemnifying party
shall authorize the indemnified party to employ separate counsel at the expense of the indemnifying party. An indemnifying party will not, without the prior written consent of the indemnified parties, 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 parties are actual or potential parties 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. 
  
 (d) In the event that the indemnity provided in paragraph (a) or (b) of this
Section is unavailable to or insufficient to hold harmless an indemnified party for any reason, then each applicable indemnifying party shall have a joint and several obligation to contribute to the aggregate losses, claims, damages and liabilities
(including legal or other expenses reasonably incurred in connection with investigating or defending any loss, claim, liability, damage or action) (collectively “Losses”) to which such indemnified party may be subject in such proportion as
is appropriate to reflect the relative benefits received by such indemnifying party, on the one hand, and such indemnified party, on the other hand, from the Initial Placement and the Registration Statement which resulted in such Losses;
provided, however, that in no case 
  

 15 

 shall any Initial Purchaser be responsible, in the aggregate, for any amount in excess of the purchase discount or
commission applicable to such Security, or in the case of a New Security, applicable to the Security that was exchangeable into such New Security, as set forth in the Final Memorandum, nor shall any underwriter be responsible for any amount in
excess of the underwriting discount or commission applicable to the securities purchased by such underwriter under the Registration Statement which resulted in such Losses. If the allocation provided by the immediately preceding sentence is
unavailable for any reason, the indemnifying party and the indemnified party shall contribute in such proportion as is appropriate to reflect not only such relative benefits but also the relative fault of such indemnifying party, on the one hand,
and such indemnified party, on the other hand, in connection with the statements or omissions which resulted in such Losses as well as any other relevant equitable considerations. Benefits received by the Company shall be deemed to be equal to the
total net proceeds from the Initial Placement (before deducting expenses) as set forth in the Final Memorandum. Benefits received by the Initial Purchasers shall be deemed to be equal to the total purchase discounts and commissions as set forth on
the cover page of the Final Memorandum, and benefits received by any other Holders shall be deemed to be equal to the value of receiving Securities or New Securities, as applicable, registered under the Act. Benefits received by any underwriter
shall be deemed to be equal to the total underwriting discounts and commissions, as set forth on the cover page of the Prospectus forming a part of the Registration Statement which resulted in such Losses. Relative fault shall be determined by
reference to, among other things, whether any untrue or any alleged untrue statement of a material fact or omission or alleged omission to state a material fact relates to information provided by the indemnifying party, on the one hand, or by the
indemnified party, on the other hand, the intent of the parties and their relative knowledge, access to information and opportunity to correct or prevent such untrue statement or omission. The parties agree that it would not be just and equitable if
contribution were determined by pro rata allocation (even if the Holders were treated as one entity for such purpose) or any other method of allocation which does not take account of the equitable considerations referred to above. Notwithstanding
the provisions of this paragraph (d), no person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. For
purposes of this Section, each person who controls a Holder within the meaning of either the Act or the Exchange Act and each director, officer, employee and agent of such Holder shall have the same rights to contribution as such Holder, and each
person who controls the Company within the meaning of either the Act or the Exchange Act, each officer of the Company who shall have signed the Registration Statement and each director of the Company shall have the same rights to contribution as the
Company, subject in each case to the applicable terms and conditions of this paragraph (d). 
  
 (e) The provisions of this Section will remain in full force and effect, regardless of any investigation made by or on behalf of any Holder or the Company or any of the indemnified persons referred to in this Section
6, and will survive the sale by a Holder of securities covered by a Registration Statement. 
  
 7. Underwritten Registrations. (a) If any of the Securities or New Securities, as the case may be, covered by any Shelf Registration Statement are to be sold in an underwritten offering, the Managing
Underwriters shall be selected by the Company, subject to the approval by the Majority Holders, which shall not be unreasonably withheld. 
  

 16 

 (b) No person may participate in any underwritten offering pursuant to any Shelf Registration Statement,
unless such person (i) agrees to sell such person’s Securities or New Securities, as the case may be, on the basis reasonably provided in any underwriting arrangements approved by the persons entitled hereunder to approve such arrangements; and
(ii) completes and executes all questionnaires, powers of attorney, indemnities, underwriting agreements and other documents reasonably required under the terms of such underwriting arrangements. 
  
 8. Additional Interest. (a) If (i) the Registered Exchange Offer is
not consummated on or prior to 210 days after the date of the original issuance of the Securities or (ii) the Company is required to file the Shelf Registration Statement in accordance with Section 3 and the Shelf Registration Statement is not
declared effective within 210 days after the original issuance of the Securities (each such event referred to in clauses (i) and (ii), a “Registration Default”), the Company shall be obligated to pay additional interest
(“Additional Interest”) to each Holder of Registrable Securities, during the period of such Registration Default, at a rate of 0.5% per annum on the applicable principal amount of Registrable Securities held by such Holder
until such Registration Default has been cured. Such obligation to pay Additional Interest shall survive until (i) the Exchange Offer Registration Statement is declared effective and the Registered Exchange Offer is consummated with respect to all
properly tendered Securities or (ii) the Shelf Registration Statement is declared effective, as the case may be. Following the cure of such Registration Default, the accrual of Additional Interest will cease. Notwithstanding anything to the contrary
in this Section 8, the Company shall not be required to pay Additional Interest to a Holder of Securities if such Holder failed to comply with its obligations to make the representations set forth in Section 2(e) herein or failed to provide the
information required to be provided by it, if any, pursuant to Section 3(b)(iv). 
  
 (b) The parties hereto agree that the Additional Interest provided for in this Section 8 constitute a reasonable estimate of and are intended to constitute the sole damages that will be suffered by Holders of
Securities by reason of the failure of (i) the Shelf Registration Statement to be filed or (ii) the Exchange Offer Registration Statement to be declared effective and the Registered Exchange Offer to be consummated, in each case, to the extent
required by this Agreement. 
  
 9. No Inconsistent
Agreements. The Company has not entered into, and agrees not to enter into, any agreement with respect to its securities that is inconsistent with the rights granted to the Holders herein or that otherwise conflicts with the provisions hereof.

  
 10. Amendments and Waivers. The provisions of this
Agreement may not be amended, qualified, modified or supplemented, and waivers or consents to departures from the provisions hereof may not be given, unless the Company has obtained the written consent of the Holders of a majority of the aggregate
principal amount of the Registrable Securities outstanding; provided that, with respect to any matter that directly or indirectly affects the rights of any Initial Purchaser hereunder, the Company shall obtain the written consent of each such
Initial Purchaser against which such amendment, qualification, supplement, waiver or consent is to be effective; provided, further, that no amendment, qualification, supplement, waiver or consent with respect to Section 8 hereof shall
be effective as against any Holder of Registered Securities unless consented to in writing by such Holder; and provided, further, that the 
  

 17 

 provisions of this Section 10 may not be amended, qualified, modified or supplemented, and waivers or consents to
departures from the provisions hereof may not be given, unless the Company has obtained the written consent of the Initial Purchasers and each Holder. Notwithstanding the foregoing (except the foregoing provisos), a waiver or consent to departure
from the provisions hereof with respect to a matter that relates exclusively to the rights of Holders whose Securities or New Securities, as the case may be, are being sold pursuant to a Registration Statement and that does not directly or
indirectly affect the rights of other Holders may be given by the Majority Holders, determined on the basis of Securities or New Securities, as the case may be, being sold rather than registered under such Registration Statement. 
  
 11. Notices. All notices and other communications provided for or
permitted hereunder shall be made in writing by hand-delivery, first-class mail, telex, telecopier or air courier guaranteeing overnight delivery: 
  
 (a) if to a Holder, at the most current address given by such Holder to the Company in accordance with the provisions of this Section 11, which address
initially is, with respect to each Holder, the address of such Holder maintained by the Registrar under the Indenture; 
  
 (b) if to the Representatives, initially at the address or addresses set forth in the Purchase Agreement; and 
  
 (c) if to the Company, initially at its address set forth in the Purchase
Agreement. 
  
 All such notices and communications shall be deemed
to have been duly given when received. 
  
 The Initial Purchasers
or the Company by notice to the other parties may designate additional or different addresses for subsequent notices or communications. 
  
 12. Remedies. Each Holder, in addition to being entitled to exercise all rights provided to it herein, in the Indenture or in the Purchase
Agreement or granted by law, including recovery of liquidated or other damages, will be entitled to specific performance of its rights under this Agreement. The Company agrees that monetary damages would not be adequate compensation for any loss
incurred by reason of a breach by it of the provisions of this Agreement and hereby agrees to waive in any action for specific performance the defense that a remedy at law would be adequate. 
  
 13. Successors. This Agreement shall inure to the benefit of and be
binding upon the parties hereto, their respective successors and assigns, including, without the need for an express assignment or any consent by the Company thereto, subsequent Holders of Securities and the New Securities, and the indemnified
persons referred to in Section 6 hereof. The Company hereby agrees to extend the benefits of this Agreement to any Holder of Securities and the New Securities, and any such Holder may specifically enforce the provisions of this Agreement as if an
original party hereto. 
  

 18 

 14. Counterparts. This Agreement may be signed in one or more counterparts, each of which shall
constitute an original and all of which together shall constitute one and the same agreement. 
  
 15. Headings. The section headings used herein are for convenience only and shall not affect the construction hereof. 
  
 16. Applicable Law. This Agreement shall be governed by and construed in accordance with the laws of the State of New York applicable to contracts
made and to be performed in the State of New York. The parties hereto each hereby waive any right to trial by jury in any action, proceeding or counterclaim arising out of or relating to this Agreement. 
  
 17. Severability. In the event that any one of more of the provisions
contained herein, or the application thereof in any circumstances, is held invalid, illegal or unenforceable in any respect for any reason, the validity, legality and enforceability of any such provision in every other respect and of the remaining
provisions hereof shall not be in any way impaired or affected thereby, it being intended that all of the rights and privileges of the parties shall be enforceable to the fullest extent permitted by law. 
  
 18. Securities Held by the Company, etc. Whenever the consent or
approval of Holders of a specified percentage of principal amount of Securities or New Securities is required hereunder, Securities or New Securities, as applicable, held by the Company or its Affiliates (other than subsequent Holders of Securities
or New Securities if such subsequent Holders are deemed to be Affiliates solely by reason of their holdings of such Securities or New Securities) shall not be counted in determining whether such consent or approval was given by the Holders of such
required percentage. 
  

 19 

 If the foregoing is in accordance with your understanding of our agreement, please sign and return to us
the enclosed duplicate hereof, whereupon this letter and your acceptance shall represent a binding agreement between the Company and the several Initial Purchasers. 
  

			
	 Very truly yours,

	
	 SUNGARD DATA SYSTEMS INC.

		
	 By:
	 	 /s/ Michael J. Ruane

	 	 	 Name: Michael J. Ruane

	 	 	 Title: Senior Vice President - Finance & Chief Financial Officer

  
 The foregoing Agreement is hereby confirmed and 
 accepted as of the date first above written. 
  
 Citigroup Global Markets Inc. 
 J.P. Morgan Securities Inc. 
  

			
	 By:
	 	 Citigroup Global Markets Inc.

		
	 By
	 	 /s/ Simon Hewett

	 	 	 Name: Simon Hewett

	 	 	 Title: Managing Director

  
 For
themselves and the other several 
 Initial Purchasers named in Schedule I 
 to the Purchase Agreement. 

 ANNEX A 
  
 Each Broker-Dealer that receives New Securities for its own account pursuant to the Registered Exchange Offer must acknowledge that it will deliver a
prospectus in connection with any resale of such New Securities. The Letter of Transmittal states that by so acknowledging and by delivering a prospectus, a Broker-Dealer will not be deemed to admit that it is an “underwriter” within the
meaning of the Act. This prospectus, as it may be amended or supplemented from time to time, may be used by a Broker-Dealer in connection with resales of New Securities received in exchange for Securities where such securities were acquired by such
Broker-Dealer as a result of market-making activities or other trading activities. The Company has agreed that, starting on the Expiration Date and ending on the close of business one year after the Expiration Date, it will make this prospectus
available to any Broker-Dealer for use in connection with any such resale. See “Plan of Distribution.” 
  

 A-1 

 ANNEX B 
  
 Each Broker-Dealer that receives New Securities for its own account in exchange for Securities, where such securities were acquired by such Broker-Dealer
as a result of market-making activities or other trading activities, must acknowledge that it will deliver a prospectus in connection with any resale of such New Securities. See “Plan of Distribution.” 
  

 B-1 

 ANNEX C 
  

PLAN OF DISTRIBUTION 
  
 Each Broker-Dealer that receives New Securities for its own account pursuant to the Registered Exchange Offer must acknowledge that it will deliver a
prospectus in connection with any resale of such New Securities. This prospectus, as it may be amended or supplemented from time to time, may be used by a Broker-Dealer in connection with resales of New Securities received in exchange for Securities
where such securities were acquired as a result of market-making activities or other trading activities. The Company has agreed that, starting on the Expiration Date and ending on the close of business one year after the Expiration Date, it will
make this prospectus, as amended or supplemented, available to any Broker-Dealer for use in connection with any such resale. In addition, until                 ,
            , all dealers effecting transactions in the New Securities may be required to deliver a prospectus. 
  
 The Company will not receive any proceeds from any sale of New Securities by Brokers-Dealers. New Securities received by
Broker-Dealers for their own account pursuant to the Registered Exchange Offer may be sold from time to time in one or more transactions in the over-the-counter market, in negotiated transactions, through the writing of options on the New Securities
or a combination of such methods of resale, at market prices prevailing at the time of resale, at prices related to such prevailing market prices or negotiated prices. Any such resale may be made directly to purchasers or to or through brokers or
dealers who may receive compensation in the form of commissions or concessions from any such Broker-Dealer and/or the purchasers of any such New Securities. Any Broker-Dealer that resells New Securities that were received by it for its own account
pursuant to the Registered Exchange Offer and any broker or dealer that participates in a distribution of such New Securities may be deemed to be an “underwriter” within the meaning of the Act and any profit of any such resale of New
Securities and any commissions or concessions received by any such persons may be deemed to be underwriting compensation under the Act. The Letter of Transmittal states that by acknowledging that it will deliver and by delivering a prospectus, a
Broker-Dealer will not be deemed to admit that it is an “underwriter” within the meaning of the Act. 
  
 For a period of one year after the Expiration Date, the Company will promptly send additional copies of this prospectus and any amendment or supplement to
this prospectus to any Broker-Dealer that requests such documents in the Letter of Transmittal. The Company has agreed to pay all expenses incident to the Registered Exchange Offer (including the expenses of one counsel for the holder of the
securities) other than commissions or concessions of any brokers or dealers and will indemnify the holders of the securities (including any broker-dealers) against certain liabilities, including liabilities under the Act. 
  
 [If applicable, add information required by Regulation S-K Items 507
and/or 508.] 
  

 C-1 

 ANNEX D 
  
 Rider A 
  
 PLEASE FILL IN YOUR NAME AND ADDRESS BELOW IF YOU ARE A BROKER-DEALER AND WISH TO RECEIVE 10 ADDITIONAL COPIES OF THE PROSPECTUS AND 10 COPIES OF ANY AMENDMENTS OR
SUPPLEMENTS THERETO. 
  

			
	 Name:
	 	  

	 Address:
	 	  

	 	 	  

  
 Rider B 
  
 If the undersigned is not a Broker-Dealer, the
undersigned represents that it acquired the New Securities in the ordinary course of its business, it is not engaged in, and does not intend to engage in, a distribution of New Securities and it has no arrangements or understandings with any person
to participate in a distribution of the New Securities. If the undersigned is a Broker-Dealer that will receive New Securities for its own account in exchange for Securities, it represents that the Securities to be exchange for New Securities were
acquired by it as a result of market-making activities or other trading activities and acknowledges that it will deliver a prospectus in connection with any resale of such New Securities; however, by so acknowledging and by delivering a prospectus,
the undersigned will not be deemed to admit that it is an “underwriter” within the meaning of the Act 
  

 D-1Stock Purchase Agreement

  Exhibit 4.8 
   
 STOCK PURCHASE AGREEMENT 
  
 ACT Teleconferencing, Inc. 
 1526 Cole Boulevard, Suite 250 
 Golden, CO 80401 
  
 The undersigned (the “Investor”), hereby confirms its agreement with you as follows: 
  

	1.	This Stock Purchase Agreement (the “Agreement”) is made as of the date set forth below between ACT Teleconferencing, Inc., a Colorado corporation (the
“Company”), and the Investor. 

  

	2.	The Company has authorized the sale and issuance of up to 1,500,000 shares (the “Shares”) of common stock of the Company, no par value (the “Common
Stock”), to certain investors in a private placement (the “Offering”). 

  

	3.	The Company and the Investor agree that the Investor will purchase from the Company and the Company will issue and sell to the Investor: (a) 1,500,000 Shares at a purchase price of
$2.20 per Share, or an aggregate purchase price of $3,300,000, pursuant to the Terms and Conditions for Purchase of Shares attached hereto as Annex I and incorporated herein by this reference as if fully set forth herein; and (b) Warrants (the
“Warrants”) to purchase 340,000 shares of Common Stock (the “Warrant Shares”) at an exercise price of $2.20 per Warrant Share, which expire three years from the Closing Date. Unless otherwise requested by the
Investor in Exhibit A to Annex I, certificates representing the Shares and Warrants purchased by the Investor will be registered in the Investor’s name and address as set forth below. 

  

	4.	The Investor represents that, except as set forth below, (a) it has had no position, office or other material relationship within the past three years with the Company or its
affiliates, and (b) it has no direct or indirect affiliation or association with any National Association of Securities Dealers, Inc. (“NASD”) member. Exceptions: 

  
 NONE 
  
 (If no exceptions, write “none.” If left blank, response will be
deemed to be “none.”) 
  
 Please confirm that the foregoing correctly
sets forth the agreement between us by signing in the space provided below for that purpose. 
  

			
	 Dated as of: February 18, 2004

	
	Fuller & Thaler Behavioral Finance Fund, Ltd.
	
	 “INVESTOR”

		
	 By:
	 	 
	 	 	

	 Print Name:
	 	 
	 	 	

	 Title:
	 	 
	 	 	

	 Address:
	 	 
	 	 	

	 	 	 
	 	 	

  

 1 

			
	 AGREED AND ACCEPTED:

	
	ACT Teleconferencing, Inc.
		
	 By:
	 	 
	 	 	

	 Title:
	 	 Chief Financial Officer

  

 ANNEX I 
 TERMS AND CONDITIONS FOR PURCHASE OF SHARES AND WARRANTS 
 BY FULLER & THALER BEHAVIORAL FINANCE FUND,
LTD. 
  
 1. Agreement to Sell and
Purchase the Shares and Warrants; Subscription Date. At the Closing (as defined in Section 2), ACT Teleconferencing, Inc. (the “Company”) will sell to the Investor named in the Stock Purchase Agreement dated February 18, 2004 to
which this Annex I is attached, and the Investor will purchase from the Company, upon the terms and conditions hereinafter set forth, the number of Shares, Warrants, and shares underlying the Warrants (collectively, the
“Securities”) set forth in paragraph 3 of the Stock Purchase Agreement to which these Terms and Conditions for Purchase of Shares and Warrants are attached as Annex I and at the purchase price set forth in such paragraph.

  
 2. Delivery of the Securities at Closing. The
completion of the purchase and sale of the Securities (the “Closing”) shall occur at a place and time, no later than March 1, 2004 (the “Closing Date”), to be specified by the Company and the Investor. By mutual
agreement, the Closing can be conducted by phone, fax, and e-mail, with delivery of stock and warrant certificates and wire transfer of funds within two business days thereafter. At the Closing, the Company shall deliver to the Investor (a) one or
more stock certificates representing the number of Shares set forth on the signature page hereto, each such certificate to be registered in the name of the Investor or, if so indicated on the Securities Certificate Questionnaire attached hereto as
Exhibit A, in the name of a nominee designated by the Investor provided that, if requested by the Investor, stock certificates representing such Shares shall be delivered in escrow to such Investor’s agent prior to the Closing, to be held until
the completion of the Closing; and (b) the Warrants. In addition, on or prior to the Closing Date, the Company shall cause counsel to the Company to deliver to each Investor a legal opinion in the form attached hereto as Exhibit D. 
  
 The Company’s obligation to issue and sell the Securities to the
Investor shall be subject to the following conditions, any one or more of which may be waived by the Company: (a) receipt by the Company of the purchase price for the Securities being purchased hereunder as set forth on the signature page hereto;
and (b) the accuracy of the representations and warranties made by the Investor and the fulfillment of those undertakings of the Investor to be fulfilled prior to the Closing. 
  
 The Investor’s obligation to purchase the Securities shall be subject to the following conditions, any one or more of
which may be waived by the Investor: (a) the Company’s agreement to issue and sell, and the Investor’s agreements to purchase, on the Closing Date, the number of Shares and Warrants indicated on the Stock Purchase Agreement; (b) the
delivery to the Investor by counsel to the Company of a legal opinion in the form attached hereto as Exhibit D; (c) the representations and warranties of the Company contained in Section 3 being true and correct in all material respects on and as of
such Closing with the same effect as though such representations and warranties had been made on and as of the date of such Closing; (d) the absence of any order, writ, injunction, judgment or decree that questions the validity of the Agreement or
the right of the Company to enter into such Agreement or to consummate the transactions contemplated hereby and thereby; (e) The James F. Seifert Management Trust dated October 8, 1992, NewWest Mezzanine Fund, L.P., Convergent Capital Partners,
L.P., and Kansas City Equity Partners II, L.P. shall have waived (i) their purchase rights with respect to the Securities under section 15 of the Warrant Agreement dated May 12, 2003, as amended, to which they are parties with the Company, (ii) the
requirement under section 6 of such Warrant Agreement that the Company submit the issuance of the Securities to a vote of the Company’s shareholders, and (iii) the effect of any provision of such Warrant Agreement or the Note Agreement dated
May 12, 2003 requiring consent for the issuance of the Securities; and (f) the delivery to the Investor by the Secretary or Assistant Secretary of the Company of a certificate stating that the condition specified in part (c) of this paragraph has
been fulfilled. 
  

 1 

 3. Representations, Warranties and Covenants of the Company. Except as
otherwise described in the Company’s Annual Report on Form 10-K for the year ended December 31, 2002 (and any amendments thereto filed prior to the date hereof); the Company’s Proxy Statement for its 2003 Annual Meeting of Shareholders;
the Company’s Quarterly Reports on Form 10-Q for the quarters ended March 31, 2003, June 30, 2003, and September 30, 2003; the Company’s Current Reports on Form 8-K filed since January 1, 2003; and the Company’s registration
statements on Form S-3 filed since January 1, 2003, (collectively, the “SEC Reports” or the “Reports”), or any press releases issued by the Company since January 1, 2003, the Company hereby represents and warrants
to, and covenants with, the Investor as of the date hereof and the Closing Date, as follows: 
  
 3.1 Organization. Each of the Company and its Subsidiaries (as defined in Rule 405 under the Securities Act of 1933,
as amended (the “Securities Act”)) is duly incorporated and validly existing in good standing under the laws of the jurisdiction of its organization. Each of the Company and its Subsidiaries has full power and authority to own,
operate and occupy its properties and to conduct its business as presently conducted and is registered or qualified to do business and in good standing in each jurisdiction in which it owns or leases property or transacts business and where the
failure to be so qualified would have a material adverse effect upon the Company and its Subsidiaries taken as a whole, or the business, financial condition, properties, operations or assets of the Company and its Subsidiaries taken as a whole, or
the Company’s ability to perform its obligations under the Agreements (“Material Adverse Effect”), and no proceeding has been instituted in any such jurisdiction revoking, limiting or curtailing, or seeking to revoke, limit or
curtail, such power and authority or qualification, which proceeding is reasonably likely to result in a Material Adverse Effect. 
  
 3.2 Due Authorization. The Company has all requisite power and authority to execute, deliver and perform its
obligations under the Agreement, and the Agreement has been duly authorized and validly executed and delivered by the Company and constitute legal, valid and binding agreements of the Company enforceable against the Company in accordance with their
terms, except as rights to indemnity and contribution may be limited by state or federal securities laws or the public policy underlying such laws, except as enforceability may be limited by applicable bankruptcy, insolvency, reorganization,
moratorium or similar laws affecting creditors’ and contracting parties’ rights generally and except as enforceability may be subject to general principles of equity (regardless of whether such enforceability is considered in a proceeding
in equity or at law). 
  
 3.3
Non-Contravention. The execution and delivery of the Agreement, the issuance and sale of the Securities to be sold by the Company under the Agreement, the fulfillment of the terms of the Agreement and the consummation of the
transactions contemplated thereby will not (A) result in conflict with or constitute a violation of, or default (with the passage of time or otherwise) under, (i) any bond, debenture, note or other evidence of indebtedness, or any lease, contract,
indenture, mortgage, deed of trust, loan agreement, joint venture or other agreement or instrument to which the Company or any of its Subsidiaries is a party or by which the Company or any of its Subsidiaries or their respective properties are
bound, where such conflict, violation or default is reasonably expected to result in a Material Adverse Effect; or (ii) the articles of incorporation, by-laws or other organizational documents of the Company or any of its Subsidiaries, or (iii) any
law, administrative regulation, ordinance or order of any court or governmental agency, arbitration panel or authority binding upon the Company or any of its Subsidiaries or their respective properties, where such conflict, violation or default is
reasonably likely to result in a Material Adverse Effect or (B) result in (x) the creation or imposition of any lien, encumbrance, claim, security interest or restriction whatsoever upon any of the properties or assets of the Company or any of its
Subsidiaries which is reasonably likely to result in a Material Adverse Effect or (y) an acceleration of indebtedness pursuant to any obligation, agreement or condition contained in any 

  

 2 

 
bond, debenture, note or any other evidence of indebtedness or any indenture, mortgage, deed of trust or any other agreement or instrument to which the
Company or any of its Subsidiaries is a party or by which any of them is bound or to which any of the property or assets of the Company or any of its Subsidiaries is subject which is reasonably likely to result in a Material Adverse Effect. No
consent, approval, authorization or other order of, or registration, qualification or filing with, any regulatory body, administrative agency, or other governmental body in the United States is required for the execution and delivery of the
Agreement by the Company and the valid issuance and sale of the Securities by the Company pursuant to the Agreement, other than such as have been made or obtained, and except for any filings required to be made under federal or state securities
laws, which the Company covenants to do in a timely manner. 
  
 3.4 Capitalization. The capitalization of the Company as of September 30, 2003 is as described in the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2003. The
Securities to be sold pursuant to the Agreement have been duly authorized, and when issued and paid for in accordance with the terms of the Agreement, will be duly and validly issued, fully paid and nonassessable and free and clear of all pledges,
liens and encumbrances (other than restrictions on transfer under state and/or federal securities laws as set forth herein or as otherwise required by such laws at the time a transfer is proposed). The outstanding shares of capital stock of the
Company have been duly and validly issued and are fully paid and nonassessable, have been issued in compliance with the registration requirements of federal and state securities laws or exemptions therefrom, and were not issued in violation of any
preemptive rights or similar rights to subscribe for or purchase securities. Except for options issued under the Company’s stock option plans, rights under the Company’s Employee Stock Purchase Plan, warrants as discussed in the SEC
Reports, grants of options that require approval of the shareholders at the next special or annual meeting of shareholders, rights pursuant to antidilution provisions of prior investment agreements, and rights under the Company’s Rights Plan
dated November 18, 1999 (Series B Junior Participating Preferred Stock), there are no outstanding rights (including, without limitation, preemptive rights), warrants or options to acquire, or instruments convertible into or exchangeable for, any
unissued shares of capital stock or other equity interest in the Company or any of its Subsidiaries, or any contract, commitment, agreement, understanding or arrangement of any kind, in either case to which the Company or any of its Subsidiaries is
a party and providing for the issuance or sale of any capital stock of the Company or any of its Subsidiaries, any such convertible or exchangeable securities or any such rights, warrants or options. 
  
 3.5 Legal Proceedings. There is no legal or
governmental proceeding pending, or to the knowledge of the Company, threatened, to which the Company or any of its Subsidiaries is a party or of which the business or property of the Company or any of its Subsidiaries is subject which is reasonably
likely to result in a Material Adverse Effect; nor, to the knowledge of the Company, is there any reasonable basis therefor. Neither the Company nor any Subsidiary is a party to the provisions of any injunction, judgment, decree or order of any
court, regulatory body, administrative agency or other government body which has had or could reasonably be expected to have a Material Adverse Effect. 
  
 3.6 No Violations. Neither the Company nor any of its Subsidiaries is (a) in violation of its articles of incorporation, bylaws or
other organizational documents, or (b) in violation of any law, administrative regulation, ordinance or order of any court or governmental agency, arbitration panel or authority applicable to the Company or any of its Subsidiaries, which violation,
individually or in the aggregate, is reasonably likely to have a Material Adverse Effect; nor is the Company or any of its Subsidiaries in default (and there exists no condition which, with the passage of time or otherwise, would constitute a
default) in the performance of any bond, debenture, note or any other evidence of indebtedness or any indenture, mortgage, deed of trust or any other material agreement or instrument to which the Company or any of its Subsidiaries is a party or by
which the Company or any of its 

  

 3 

 
Subsidiaries is bound or by which the property of the Company or any of its Subsidiaries is bound, which default is reasonably likely to have a Material
Adverse Effect. 
  
 3.7 Governmental
Permits, Etc. Each of the Company and its Subsidiaries has all necessary franchises, licenses, certificates and other authorizations from any foreign, federal, state or local government or governmental agency, department or body that are
currently necessary for the operation of the business of the Company and its Subsidiaries as currently conducted, except where the failure to currently possess such franchises, licenses, certificates and other authorizations is not reasonably
expected to have a Material Adverse Effect, and the Company has not received any notice of proceedings relating to the revocation or modification of any such permit or any circumstance which would lead it to believe that such proceedings are
reasonably likely which, individually or in the aggregate, if the subject of an unfavorable decision, ruling or finding, could reasonably be expected to have a Material Adverse Effect. 
  
 3.8 Financial Statements. The consolidated financial statements of the Company and the
related notes contained in the SEC Reports present fairly, in accordance with generally accepted accounting principles, the consolidated financial position of the Company and its Subsidiaries as of the dates indicated, and the results of their
operations, cash flows and the changes in stockholders’ equity for the periods therein specified, subject, in the case of unaudited financial statements for interim periods, to normal year-end audit adjustments. Such consolidated financial
statements (including the related notes) have been prepared in accordance with generally accepted accounting principles applied on a consistent basis throughout the periods therein specified, except that unaudited financial statements may not
contain all footnotes required by generally accepted accounting principles. 
  
 3.9 No Material Adverse Change. Since September 30, 2003, there has not been (i) a change that has had or is reasonably likely to have a Material Adverse Effect, (ii) any debt, obligation or liability,
direct or contingent, that is material to the Company or any of its Subsidiaries considered as one enterprise, incurred by the Company or any of its Subsidiaries, except obligations incurred in the ordinary course of business, (iii) any dividend or
distribution of any kind declared, paid or made on the capital stock of the Company or any of its Subsidiaries, or (iv) any loss or damage (whether or not insured) to the physical property of the Company or any of its Subsidiaries which has been
sustained which has a Material Adverse Effect. Except as disclosed in the Company’s SEC Reports and except for liens and security interests granted in connection with the Company’s credit facilities and liens granted in the ordinary course
of business, since September 30, 2003, the Company has not (i) mortgaged, pledged or subjected to lien, charge, security interest or other encumbrance any of its assets, tangible or intangible, (ii) waived any debt owed to the Company, or (iii)
satisfied or discharged any lien, claim or encumbrance or paid any obligation other than in the ordinary course of business. 
  
 3.10 Nasdaq Compliance. The Company’s Common Stock is registered pursuant to Section 12(g) of the Securities Exchange Act of
1934, as amended (the “Exchange Act”), and is listed on the Nasdaq National Market (the “Nasdaq Stock Market”), and the Company has taken no action designed to, or which to its knowledge is reasonably likely to have
the effect of, terminating the registration of the Common Stock under the Exchange Act or delisting the Common Stock from the Nasdaq Stock Market. 
  
 3.11 Reporting Status. Except as described in this Section 3.11, the Company has timely made all filings required under the
Exchange Act during the 12 months preceding the date of this Agreement, and all of those documents complied in all material respects with the SEC’s requirements as of their respective filing dates, and the information contained therein as of
the respective dates thereof did not contain an untrue statement of a material fact or omit to state a material fact required to be stated 

  

 4 

 
therein or necessary to make the statements therein in light of the circumstances under which they were made not misleading. 
  
 3.12 No Manipulation of Stock. The Company has not
taken and will not, in violation of applicable law, take any action outside the ordinary course of business designed to or that might reasonably be expected to cause or result in unlawful manipulation of the price of the Common Stock to facilitate
the sale or resale of the Securities. 
  
 3.13
Accountants. Ernst and Young LLP, who expressed their opinion with respect to the consolidated financial statements to be incorporated by reference from the Company’s Annual Report on Form 10-K for the year ended December 31, 2002, have
advised the Company that they are, and to the best knowledge of the Company they are, independent accountants as required by the Securities Act and the rules and regulations promulgated thereunder (the “Rules and Regulations”). On
October 28, 2003, the Company engaged Hein + Associates LLP to replace Ernst & Young LLP as its independent accountants. 
  
 3.14 Contracts. Except for matters which are not reasonably likely to have a Material Adverse Effect, the contracts listed
as exhibits to the SEC Reports, other than those contracts that are substantially or fully performed or expired by their terms, are in full force and effect on the date hereof, and none of the Company, its Subsidiaries nor, to the Company’s
knowledge, any other party to such contracts, is in breach of or default under any of such contracts. 
  
 3.15 Taxes. Except for matters which are not reasonably expected to have a Material Adverse Effect, the Company has filed
all necessary federal, state and foreign income and franchise tax returns and has paid or accrued all taxes shown as due thereon, and the Company has no knowledge of a tax deficiency which has been asserted or threatened against the Company.

  
 3.16 Transfer Taxes. On the
Closing Date, all stock transfer or other taxes (other than income taxes) which are required to be paid in connection with the sale and transfer of the Securities hereunder will be, or will have been, fully paid or provided for by the Company and
the Company will have complied with all laws imposing such taxes. 
  
 3.17 Investment Company. The Company is not an “investment company” or an “affiliated person” of, or “promoter” or “principal
underwriter” for an investment company, within the meaning of the Investment Company Act of 1940, as amended. 
  
 3.18 Insurance. The Company and its Subsidiaries maintain insurance of the types and in the amounts that the Company
reasonably believes is adequate for their businesses, including, but not limited to, insurance covering real and personal property owned or leased by the Company and its Subsidiaries against theft, damage, destruction, acts of vandalism and all
other risks customarily insured against by similarly situated companies, all of which insurance is in full force and effect. 
  
 3.19 Offering Materials. The Company has not in the past nor will it hereafter take any action to sell, offer for sale or
solicit offers to buy any securities of the Company which would bring the offer or sale of the Securities as contemplated by this Agreement within the provisions of Section 5 of the Securities Act. Based in part upon the representations and
warranties of the Investor contained in Section 4 of the Agreement, the offer, sale and issuance of the Securities as contemplated by this Agreement are exempt from the registration requirements of the Securities Act, and from the registration or
qualification requirements of the laws of any applicable state or U.S. jurisdiction which has not or will not be obtained. 
  

 5 

 3.20 Listing. The Company shall comply with all requirements of the NASD
with respect to the issuance of the Securities and shall use its best efforts to have the Securities listed on the Nasdaq Stock Market on or before the first date that the Registration Statement is declared effective by the SEC. 
  
 3.21 Books and Records. The books, records and
accounts of the Company and the Subsidiaries accurately and fairly reflect, in reasonable detail, the transactions in, and dispositions of, the assets of, and the operations of, the Company and the Subsidiaries. The Company maintains a system of
internal accounting controls sufficient to provide reasonable assurances that (i) transactions are executed in accordance with management’s general or specific authorizations, (ii) transactions are recorded as necessary to permit preparation of
financial statements in accordance with generally accepted accounting principles and to maintain asset accountability, (iii) access to assets is permitted only in accordance with management’s general or specific authorization and (iv) the
recorded accountability for assets is compared with the existing assets at reasonable intervals and appropriate action is taken with respect to any differences. 
  
 3.22 Compliance with Environmental Laws. Except as disclosed in the SEC Reports and except for
matters which are not reasonably likely to have a Material Adverse Effect, (i) the Company is not in violation of any applicable statute, law or regulation relating to the environment or occupational health and safety, and, (ii) to the
Company’s knowledge, no material expenditures are or will be required in order to comply with any such existing statute, law or regulation. To the Company’s knowledge, the Company does not have any material liability to any governmental
authority or other third party arising under or as a result of any such past or existing statute, law or regulation. 
  
 3.23 Properties. The Company has good and marketable title to all the properties and assets reflected as owned in the
financial statements included in the SEC Reports, subject to no lien, mortgage, pledge, charge or encumbrance of any kind except (i) those, if any, reflected in the financial statements included in the SEC Reports, (ii) those imposed by its lenders,
including parties to the Company’s acquisitions; or (iii) those which are not material in amount and do not adversely affect the use of such property by the Company and its subsidiaries. The Company holds its leased properties under valid and
binding leases, with such exceptions as are not materially significant in relation to the business of the Company. Except as disclosed in the SEC Reports, the Company owns or leases all such properties as are necessary to its operations as now
conducted or as proposed to be conducted. 
  
 3.24 Compliance. The Company has not been advised, and has no reason to believe, that it is not conducting its business in compliance with all applicable laws, rules and regulations of the jurisdictions in which it is
conducting business, except where the failure to be in such compliance would not have a Material Adverse Effect. 
  
 3.25 Labor Matters. No labor dispute with the employees of the Company exists other than those that have arisen in the
ordinary course of business or, to the knowledge of the Company, is imminent or reasonably likely. 
  
 3.26 Other Governmental Proceedings. To the Company’s knowledge, there are no rulemaking or similar proceedings before
federal, state, local or foreign government bodies that involve or affect the Company, and which ruling or proceeding, if the subject of an action unfavorable to the Company, would reasonably be likely to have a Material Adverse Effect. 

 

 6 

 4. Representations, Warranties and Covenants of the Investor. 
  
 4.1 Investor Knowledge and Status. The
Investor represents and warrants to, and covenants with, the Company that: (i) the Investor is an “accredited investor” as defined in Regulation D under the Securities Act and has requested, received, reviewed and considered all
information it deemed relevant in making an informed decision to purchase the Securities; (ii) the Investor understands that the Securities are “restricted securities” and the offer and sale thereof have not been registered under
the Securities Act and is acquiring the number of Securities set forth on the signature page hereto in the ordinary course of its business and for its own account for investment only, has no present intention of distributing any of such Securities
and has no arrangement or understanding with any other persons regarding the distribution of such Securities (this representation and warranty not limiting the Investor’s right to sell Securities pursuant to the Registration Statement,
referenced in Section 6, or otherwise, or other than with respect to any claim arising out of a breach of this representation and warranty, and the Investor’s right to indemnification under Section 6.3); (iii) the Investor will not, directly or
indirectly, offer, sell, pledge, transfer or otherwise dispose of (or solicit any offers to buy, purchase or otherwise acquire or take a pledge of) any of the Shares, Warrants, or Warrant Shares except in compliance with the Securities Act,
applicable state securities laws and the respective rules and regulations promulgated thereunder; (iv) the Investor has answered all questions on the signature page hereto and the Investor Questionnaire attached hereto as Exhibit B for use in
preparation of the Registration Statement and the answers thereto are true and correct as of the date hereof and will be true and correct as of the Closing Date; (v) the Investor will notify the Company immediately of any change in any of such
information until such time as the Investor has sold all of its Securities or until the Company is no longer required to keep the Registration Statement effective; and (vi) the Investor has, in connection with its decision to purchase the Securities
set forth on the signature page hereto, relied only upon the SEC Reports and the representations and warranties of the Company contained herein. Investor understands that the issuance of the Securities to the Investor has not been registered under
the Securities Act, or registered or qualified under any state securities law in reliance on specific exemptions therefrom, which exemptions may depend upon, among other things, the bona fide nature of the Investor’s investment intent as
expressed herein. The Placement Agent is not authorized to make any representation or use any information in connection with the placement, purchase and sale of the Securities, and no person is authorized to provide any representation which is
inconsistent or in addition to those herein or in the SEC Reports. The Investor acknowledges that it has not received or relied on any such representations. 
  
 4.2 International Actions. The Investor acknowledges, represents and agrees that no action has been or will be taken
in any jurisdiction outside the United States by the Company or the Placement Agent that would permit an offering of the Securities, or possession or distribution of offering materials in connection with the issue of the Securities, in any
jurisdiction outside the United States. If the Investor is located outside the United States, it has or will take all actions necessary for the sale of the Securities to comply with all applicable laws and regulations in each foreign jurisdiction in
which it purchases, offers, sells or delivers Securities or has in its possession or distributes any offering material, in all cases at its own expense. 
  
 4.3 Registration Required. The Investor hereby covenants with the Company not to make any sale of the Securities
without complying with the provisions of this Agreement, including Section 6.2 hereof, and without effectively causing the prospectus delivery requirement under the Securities Act to be satisfied (unless the Investor is selling such Securities in a
transaction not subject to the prospectus delivery requirement), and the Investor acknowledges that the certificates evidencing the Securities will be imprinted with a legend that prohibits their transfer except in accordance therewith. The Investor
acknowledges that as set forth in, and subject to the provisions of, Section 6.2, there may occasionally be times when the Company, based on the advice of its counsel, determines that it must 

  

 7 

 
suspend the use of the Prospectus forming a part of the Registration Statement until such time as an amendment to the Registration Statement has been filed
by the Company and declared effective by the SEC or until the Company has amended or supplemented such Prospectus. 
  
 4.4 Power and Authority. The Investor further represents and warrants to, and covenants with, the Company that (i)
the Investor has full right, power, authority and capacity to enter into this Agreement and to consummate the transactions contemplated hereby and has taken all necessary action to authorize the execution, delivery and performance of this Agreement,
and (ii) this Agreement constitutes a valid and binding obligation of the Investor enforceable against the Investor in accordance with its terms, except as enforceability may be limited by applicable bankruptcy, insolvency, reorganization,
moratorium or similar laws affecting creditors’ and contracting parties’ rights generally and except as enforceability may be subject to general principles of equity (regardless of whether such enforceability is considered in a proceeding
in equity or at law) and except as the indemnification agreements of the Investors herein may be legally unenforceable. 
  
 4.5 No Tax or Legal Advice. The Investor understands that nothing in this Agreement, or any other materials presented
to the Investor in connection with the purchase and sale of the Securities constitutes legal, tax or investment advice. The Investor has consulted such legal, tax and investment advisors as it, in its sole discretion, has deemed necessary or
appropriate in connection with its purchase of Securities. 
  
 4.6 Investor’s Consent to Terms of Warrant Agreement of May 12, 2003. The Investor hereby consents to be bound by provisions of the Warrant Agreement of May 12, 2003 that apply to the Company
and each Principal named in the Warrant Agreement. 
  
 5.
Survival of Representations, Warranties and Agreements. Notwithstanding any investigation made by any party to this Agreement or by the Placement Agent, all covenants, agreements, representations and warranties made by the Company and the
Investor herein shall survive the execution of this Agreement, the delivery to the Investor of the Securities being purchased and the payment therefor. 
  
 6. Registration of the Securities; Compliance with the Securities Act.  
  
 6.1 Registration Procedures and Expenses. The Company shall: 
  
 (a) subject to receipt of necessary information from
the Investors, prepare and file with the SEC, as soon as practicable, but in no event later than 30 business days after the Closing Date, a registration statement on Form S-3 (the “Registration Statement”) to enable the resale of
the Shares and Warrant Shares by the Investors from time to time through the automated quotation system of the Nasdaq Stock Market or in privately-negotiated transactions; 
  
 (b) use its best efforts, subject to receipt of necessary information from the Investors, to cause
the Registration Statement to become effective as soon as practicable, but in no event later than 120 days after the Registration Statement is filed by the Company, unless such deadline is missed, wholly or in part, due to backlog or other delay at
or by the SEC, delay at or by the Company’s independent accountants, or delay caused by any other matter beyond the control of the Company. If the Registration Statement has not been declared effective by the SEC on or before the date that is
120 days after the Closing Date, the Company shall, on the 121st day after the Closing Date and each 30th day thereafter, issue to the Investor .01 additional shares of Common Stock (which shall be deemed to be Shares), for every
Share purchased in the Offering, exclusive of any Warrant Shares, until the 

  

 8 

 
Registration Statement is declared effective by the SEC (rounded up to the nearest Share after aggregating all Shares held by the Investor); 
  
 (c) use its best efforts to prepare and file with the
SEC such amendments and supplements to the Registration Statement and the Prospectus used in connection therewith as may be necessary to keep the Registration Statement current and effective for a period not exceeding, with respect to each
Investor’s Shares and Warrant Shares purchased hereunder, the earliest of (i) the second anniversary of the Closing Date, (ii) the date on which the Investor may sell all Shares and Warrant Shares then held by the Investor without restriction
by volume limitations pursuant to Rule 144(k) of the Securities Act or (iii) such time as all Shares purchased by such Investor in this Offering have been sold pursuant to a registration statement; 
  
 (d) furnish to the Investor with respect to the
Shares and Warrant Shares registered for resale under the Registration Statement such number of copies of the Registration Statement, Prospectuses (including supplemental prospectuses) and preliminary versions of the Prospectus filed with the
Securities and Exchange Commission (“Preliminary Prospectuses”) in conformity with the requirements of the Securities Act and such other documents as the Investor may reasonably request, in order to facilitate the public sale or
other disposition of all or any of the Shares or Warrant Shares by the Investor, provided, however, that unless waived by the Company in writing, the obligation of the Company to deliver copies of Prospectuses or Preliminary Prospectuses to the
Investor shall be subject to the receipt by the Company of reasonable assurances from the Investor that the Investor will comply with the applicable provisions of the Securities Act and of such other securities or blue sky laws as may be applicable
in connection with any use of such Prospectuses or Preliminary Prospectuses; 
  
 (e) file documents required of the Company, if any, for normal blue sky clearance in (i) in all U.S. jurisdictions in which any of the Shares or Warrant Shares are originally sold, and (ii) in states specified
in writing by the Investor, provided, however, that, as to clause (ii) the Company shall not be required to qualify to do business or consent to service of process in any jurisdiction in which it is not now so qualified or has not so consented;

  
 (f) bear all expenses (other than
underwriting discounts and commissions, if any) in connection with the procedures in paragraph (a) through (e) of this Section 6.1 and the registration of the resale of the Shares or Warrant Shares pursuant to the Registration Statement; and

  
 (g) advise the Investor, promptly
after it shall receive notice or obtain knowledge of the issuance of any stop order by the SEC delaying or suspending the effectiveness of the Registration Statement or of the initiation of any proceeding for that purpose; and it will promptly use
its best efforts to prevent the issuance of any stop order or to obtain its withdrawal at the earliest possible moment if such stop order should be issued. 
  
 With a view to making available to the Investor the benefits of Rule 144 (or its successor rule) and any other rule or regulation of the SEC that may at
any time permit the Investor to sell Shares or Warrant Shares to the public without registration, the Company covenants and agrees to: (i) make and keep public information available, as those terms are understood and defined in Rule 144, until the
earlier of (A) such date as all of the Investor’s Shares may be resold pursuant to Rule 144(k) or any other rule of similar effect or (B) such date as all of the Investor’s Shares shall have been resold; (ii) file with the SEC in a timely
manner all reports and other documents required of the Company under the Securities Act and under the Exchange Act; and (iii) furnish to the Investor upon request, as long as the Investor owns any Shares, (A) a written statement by the Company that
it has complied with the reporting requirements of 

  

 9 

 
the Securities Act and the Exchange Act, (B) a copy of the Company’s most recent Annual Report on Form 10-K or Quarterly Report on Form 10-Q, and (C)
such other information as may be reasonably requested in order to avail the Investor of any rule or regulation of the SEC that permits the selling of any such Shares without registration. 
  
 It shall be a condition precedent to the obligations of the Company to take any action pursuant to this Section 6.1 that the
Investor shall furnish to the Company such information regarding itself, the Shares or Warrant Shares to be sold by the Investor, and the intended method of disposition of such securities as shall be required to effect the registration of the resale
of the Shares and Warrant Shares. 
  
 The Company understands that
the Investor disclaims being an underwriter, but the Investor being deemed an underwriter by the SEC shall not relieve the Company of any obligations it has hereunder. 
  
 6.2 Transfer of Securities After Registration; Suspension.  
  
 (a) The Investor agrees that it will not effect any
disposition of the Shares, Warrants, or Warrant Shares or its right to purchase the Securities that would constitute a sale within the meaning of the Securities Act other than transactions exempt from the registration requirements of the Securities
Act, except as contemplated in the Registration Statement referred to in Section 6.1 and as described below, and that it will promptly notify the Company of any changes in the information set forth in the Registration Statement regarding the
Investor or its plan of distribution. 
  
 (b)
Except in the event that paragraph (c) below applies, the Company shall: (i) if deemed necessary by the Company, prepare and file from time to time with the SEC a post-effective amendment to the Registration Statement or a supplement to the
related Prospectus or a supplement or amendment to any document incorporated therein by reference or file any other required document so that such Registration Statement will not contain an untrue statement of a material fact or omit to state a
material fact required to be stated therein or necessary to make the statements therein not misleading, and so that, as thereafter delivered to purchasers of the Securities being sold thereunder, such Prospectus will not contain an untrue statement
of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading; (ii) provide the Investor copies of any
documents filed pursuant to Section 6.2(b)(i); and (iii) upon request, inform each Investor who so requests that the Company has complied with its obligations in Section 6.2(b)(i) (or that, if the Company has filed a post-effective amendment to the
Registration Statement which has not yet been declared effective, the Company will notify the Investor to that effect, will use its best efforts to secure the effectiveness of such post-effective amendment as promptly as possible and will promptly
notify the Investor pursuant to Section 6.2(b)(i) hereof when the amendment has become effective). 
  
 (c) Subject to paragraph (d) below, in the event: (i) of any request by the SEC or any other federal or state governmental
authority during the period of effectiveness of the Registration Statement for amendments or supplements to a Registration Statement or related Prospectus or for additional information; (ii) of the issuance by the SEC or any other federal or state
governmental authority of any stop order suspending the effectiveness of a Registration Statement or the initiation of any proceedings for that purpose; (iii) of the receipt by the Company of any notification with respect to the suspension of the
qualification or exemption from qualification of any of the Shares or Warrant Shares for sale in any jurisdiction or the initiation of any proceeding for such purpose; or (iv) of any event or circumstance which necessitates the making of any changes
in the Registration Statement or Prospectus, or any document incorporated or deemed to be incorporated therein by reference, so that, in the case of 

  

 10 

 
the Registration Statement, it will not contain any untrue statement of a material fact or any omission to state a material fact required to be stated
therein or necessary to make the statements therein not misleading, and that in the case of the Prospectus, it will not contain any untrue statement of a material fact or any omission to state a material fact required to be stated therein or
necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading; then the Company shall promptly deliver a certificate in writing to the Investor (the “Suspension Notice”) to
the effect of the foregoing and, upon receipt of such Suspension Notice, the Investor will refrain from selling any Shares or Warrant Shares pursuant to the Registration Statement (a “Suspension”) until the Investor’s receipt
of copies of a supplemented or amended Prospectus prepared and filed by the Company, or until it is advised in writing by the Company that the current Prospectus may be used, and has received copies of any additional or supplemental filings that are
incorporated or deemed incorporated by reference in any such Prospectus. In the event of any Suspension, the Company will use its reasonable efforts to cause the use of the Prospectus so suspended to be resumed within 30 days after delivery of a
Suspension Notice, to the Investors. In addition to and without limiting any other remedies (including, without limitation, at law or at equity) available to the Investor, the Investor shall be entitled to specific performance in the event that the
Company fails to comply with the provisions of this Section 6.2(c). 
  
 (d) Notwithstanding the foregoing paragraphs of this Section 6.2, the Company shall use its best efforts to ensure that the Investor shall not be prohibited from selling Shares or Warrant Shares under the
Registration Statement as a result of Suspensions on more than one occasion of not more than 30 days in any twelve month period. If a Suspension is in effect for more than 30 days (consecutive or non-consecutive) in any twelve-month period, the
Company shall, on the 31st day of the Suspension and each 30th day thereafter, issue to the Investor .01 additional shares of Common Stock (which shall be deemed to be Securities), for every Share purchased in the
Offering (exclusive of the Warrant Shares) until the Suspension is lifted. 
  
 (e) Provided that a Suspension is not then in effect the Investor may sell Shares under the Registration Statement, provided that it arranges for delivery of a current Prospectus to the transferee of such
Shares or Warrant Shares. Upon receipt of a request therefor, the Company will provide an adequate number of current Prospectuses to the Investor and to any other parties requiring such Prospectuses. 
  
 (f) In the event of a sale of Shares or Warrant
Shares by the Investor, unless such requirement is waived by the Company in writing, the Investor must also deliver to the Company’s transfer agent, with a copy to the Company, a Certificate of Subsequent Sale substantially in the form attached
hereto as Exhibit C, so that the shares may be properly transferred. 
  
 6.3 Indemnification. For the purpose of this Section 6.3: 
  
 (a) the term “Selling Stockholder” shall include the Investor and each person, if any, who controls the Investor
within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act; 
  
 (b) the term “Registration Statement” shall include any Preliminary Prospectus, final Prospectus, exhibit,
supplement or amendment included in or relating to, and any document incorporated by reference in, the Registration Statement (or deemed to be a part thereof) referred to in Section 6.1; and 
  
 (c) the term “untrue statement”
shall include any untrue statement or alleged untrue statement of a material fact, or any omission or alleged omission to state in the Registration 

  

  11 

 
Statement a material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were
made, not misleading. 
  
 (d)  

 
 (i) The Company agrees to indemnify and hold
harmless each Selling Stockholder from and against any losses, claims, damages or liabilities to which such Selling Stockholder may become subject (under the Securities Act or otherwise) insofar as such losses, claims, damages or liabilities (or
actions or proceedings in respect thereof) arise out of, or are based upon (i) any untrue statement of a material fact contained in the Registration Statement, (ii) any inaccuracy in the representations and warranties of the Company contained in the
Agreement or the failure of the Company to perform its obligations hereunder or (iii) any failure by the Company to fulfill any undertaking included in the Registration Statement, and the Company will promptly reimburse such Selling Stockholder for
any reasonable legal or other expenses reasonably incurred in investigating, defending or preparing to defend any such action, proceeding or claim, provided, however, that the Company shall not be liable in any such case to the extent that such
loss, claim, damage or liability arises out of, or is based upon, an untrue statement made in such Registration Statement in reliance upon and in conformity with written information furnished to the Company by or on behalf of such Selling
Stockholder specifically for use in preparation of the Registration Statement or the failure of such Selling Stockholder to comply with its covenants and agreements contained in Sections 4.1, 4.2, 4.3 or 6.2 hereof or any statement or omission in
any Prospectus that is corrected in any subsequent Prospectus that was delivered to the Investor at least one business day prior to the pertinent sale or sales by the Investor; provided, however, that the Company shall have no liability with respect
to an untrue or alleged untrue statement or omission or alleged omission of which the Investor did not deliver to the Company in writing a correction at least five business days before the occurrence of the transaction from which such loss was
incurred. 
  
 (ii) The Investor agrees to
indemnify and hold harmless the Company (and each person, if any, who controls the Company within the meaning of Section 15 of the Securities Act, each officer of the Company who signs the Registration Statement and each director of the Company)
from and against any losses, claims, damages or liabilities to which the Company (or any such officer, director or controlling person) may become subject (under the Securities Act or otherwise), insofar as such losses, claims, damages or liabilities
(or actions or proceedings in respect thereof) arise out of, or are based upon, (i) any failure to comply with the covenants and agreements contained in Section 4.1, 4.2, 4.3 or 6.2 hereof, or (ii) any untrue statement of a material fact contained
in the Registration Statement if such untrue statement was made in reliance upon and in conformity with written information furnished by or on behalf of the Investor specifically for use in preparation of the Registration Statement, and the Investor
will promptly reimburse the Company (or such officer, director or controlling person), as the case may be, for any legal or other expenses reasonably incurred in investigating, defending or preparing to defend any such action, proceeding or claim;
provided, however, that the Investor shall not be liable for any such untrue or alleged untrue statement or omission or alleged omission of which the Investor has delivered to the Company in writing a correction at least one business
day before the occurrence of the transaction from which such loss was incurred; provided further, however, that the aggregate obligation to indemnify and contribute under this Section 6.3 shall be limited to the net amount of the proceeds received
by the Investor from the sale of the Shares and Warrant Shares pursuant to the Registration Statement. 
  
 (iii) Promptly after receipt by any indemnified person of a notice of a claim or the beginning of any action in respect of which
indemnity is to be sought against an indemnifying person pursuant to this Section 6.3, such indemnified person shall notify the indemnifying person in writing of such claim or of the commencement of such action, but the omission to so notify the

  

 12 

 
indemnifying party will not relieve it from any liability which it may have to any indemnified party under this Section 6.3 (except to the extent that such
omission materially and adversely affects the indemnifying party’s ability to defend such action) or from any liability otherwise than under this Section 6.3. Subject to the provisions hereinafter stated, in case any such action shall be
brought against an indemnified person, the indemnifying person shall be entitled to participate therein, and, to the extent that it shall elect by written notice delivered to the indemnified party promptly after receiving the aforesaid notice from
such indemnified party, shall be entitled to assume the defense thereof, with counsel reasonably satisfactory to such indemnified person. After notice from the indemnifying person to such indemnified person of its election to assume the defense
thereof (unless it has failed to assume the defense thereof and appoint counsel reasonably satisfactory to the indemnified party), such indemnifying person shall not be liable to such indemnified person for any legal expenses subsequently incurred
by such indemnified person in connection with the defense thereof, provided, however, that if there exists or shall exist a conflict of interest that would make it inappropriate, in the reasonable opinion of counsel to the indemnified person, for
the same counsel to represent both the indemnified person and such indemnifying person or any affiliate or associate thereof, the indemnified person shall be entitled to retain its own counsel at the expense of such indemnifying person; provided,
however, that no indemnifying person shall be responsible for the fees and expenses of more than one separate counsel (together with appropriate local counsel) for all indemnified persons. In no event shall any indemnifying person be liable in
respect of any amounts paid in settlement of any action unless the indemnifying person shall have approved the terms of such settlement; provided that such consent shall not be unreasonably withheld or delayed. No indemnifying person shall, without
the prior written consent of the indemnified person, effect any settlement of any pending or threatened proceeding in respect of which any indemnified person is or could reasonably have been a party and indemnification could have been sought
hereunder by such indemnified person, unless such settlement includes an unconditional release of such indemnified person from all liability on claims that are the subject matter of such proceeding. 
  
 (iv) If the indemnification provided for in this
Section 6.3 is unavailable to or insufficient to hold harmless an indemnified party under subsection (i) or (ii) above in respect of any losses, claims, damages or liabilities (or actions or proceedings in respect thereof) referred to therein, then
each indemnifying party shall contribute to the amount paid or payable by such indemnified party as a result of such losses, claims, damages or liabilities (or actions in respect thereof) in such proportion as is appropriate to reflect the relative
fault of the Company on the one hand and the Investor on the other in connection with the statements or omissions or other matters which resulted in such losses, claims, damages or liabilities (or actions in respect thereof), as well as any other
relevant equitable considerations. The relative fault shall be determined by reference to, among other things, in the case of an untrue statement, whether the untrue statement relates to information supplied by the Company on the one hand or the
Investor on the other and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such untrue statement. The Company and the Investor, or Investors if there are more than one, agree that it would not
be just and equitable if contribution pursuant to this subsection (iv) were determined by pro rata allocation (even if the Investors were treated as one entity for such purpose) or by any other method of allocation which does not take into account
the equitable considerations referred to above in this subsection (iv). The amount paid or payable by an indemnified party as a result of the losses, claims, damages or liabilities (or actions in respect thereof) referred to above in this subsection
(iv) shall be deemed to include any legal or other expenses reasonably incurred by such indemnified party in connection with investigating or defending any such action or claim. Notwithstanding the provisions of this subsection (iv), the Investor
shall not be required to indemnify and contribute an aggregate amount in excess of the amount by which the net amount received by the Investor from the sale of the Shares and Warrant Shares to which such loss relates exceeds the amount of any
damages which the Investor has otherwise been required to pay by reason of such untrue statement. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any
person who was not guilty of such 

  

 13 

 
fraudulent misrepresentation. The Investors’ obligations in this subsection to contribute are several in proportion to their sales of Securities to
which such loss relates and not joint. 
  
 (v) The parties to this Agreement hereby acknowledge that they are sophisticated business persons who were represented by counsel during the negotiations regarding the provisions hereof including, without limitation, the provisions
of this Section 6.3, and are fully informed regarding said provisions. They further acknowledge that the provisions of this Section 6.3 fairly allocate the risks in light of the ability of the parties to investigate the Company and its business in
order to assure that adequate disclosure is made in the Registration Statement as required by the Securities Act and the Exchange Act. 
  
 6.4 Termination of Conditions and Obligations. The conditions precedent imposed by Section 4 or this Section 6 upon the
transferability of the Shares and Warrant Shares shall cease and terminate as to any particular number of the Shares or Warrant Shares when such Securities shall have been effectively registered under the Securities Act and sold or otherwise
disposed of in accordance with the intended method of disposition set forth in the Registration Statement covering such Securities or at such time as an opinion of counsel satisfactory to the Company shall have been rendered to the effect that such
conditions are not necessary in order to comply with the Securities Act. 
  
 6.5 Information Available. So long as the Registration Statement is effective covering the resale of Shares and Warrant Shares owned by the Investor, the Company will make available to the Investor
through the Company’s EDGAR filings or by delivery on request: 
  
 (a) as soon as practicable after it is available, one copy of (i) its Annual Report to Shareholders (which Annual Report shall contain financial statements audited in accordance with generally accepted
accounting principles by a national firm of certified public accountants), (ii) if not included in substance in the Annual Report to Shareholders, its Annual Report on Form 10-K (the foregoing, in each case, excluding exhibits) and (iii) its
Quarterly Reports on 10-Q; 
  
 (b) upon
the reasonable request of the Investor, all other information that is made available to shareholders; and 
  
 (c) upon the reasonable request of the Investor, an adequate number of copies of the Prospectuses to supply to any other party
requiring such Prospectuses; and the Company, upon the reasonable request of the Investor, will meet with the Investor or a representative thereof at the Company’s headquarters to discuss all information relevant for disclosure in the
Registration Statement covering the Securities and will otherwise reasonably cooperate with the Investor conducting an investigation for the purpose of reducing or eliminating the Investor’s exposure to liability under the Securities Act,
including the reasonable production of information at the Company’s headquarters; provided, that the Company shall not be required to disclose any confidential information to or meet at its headquarters with the Investor until and unless the
Investor shall have entered into a confidentiality agreement in form and substance reasonably satisfactory to the Company with the Company with respect thereto. 
  

7. Notices. All notices, requests, consents and other communications hereunder shall be in writing, shall be mailed (A) if within
domestic United States by first-class registered or certified airmail, or nationally recognized overnight express courier, postage prepaid, or by facsimile, or (B) if delivered to or from outside the United States, by International Federal Express
(or comparable service) or facsimile, and shall be deemed given (i) if delivered by first-class registered or certified mail domestic, four (4) business days after so mailed, (ii) if delivered by nationally recognized overnight carrier, one (1)
business 

  

 14 

 
day after so mailed, (iii) if delivered by international Federal Express (or comparable service), two (2) business days after so mailed, (iv) if delivered by
facsimile, upon electric confirmation of receipt if confirmation is before 4:00 p.m. local time of the recipient on a business day and, if not, then the next business day, and shall be delivered as addressed as follows: 
  

	 	(a)	if to the Company, to: 

	 	    	ACT Teleconferencing, Inc. 

	 	    	1526 Cole Blvd., Suite 250 

	 	    	Golden, CO 80401 

	 	    	Attention: Gavin J. Thomson 

	 	    	Telephone: (303) 235-9000 

	 	    	Fax:             (303) 235-4399 

  

	 	    	with a copy mailed or faxed to: 

  

	 	    	Faegre & Benson LLP 

	 	    	3200 Wells Fargo Center 

	 	    	1700 Lincoln Street 

	 	    	Denver, CO 80203-4532 

	 	    	Attention: William J. Campbell 

	 	    	Telephone: (303) 607-3630 

	 	    	Fax:             (303) 607-3600 

  
 (b) if to the Investor, at its address on the signature page hereto, or at such other address or
addresses as may have been furnished to the Company in writing. 
  
 8. Changes. This Agreement may not be modified or amended except pursuant to an instrument in writing signed by the Company and the Investor. 
  
 9. Headings. The headings of the various sections of this Agreement have been inserted for convenience of
reference only and shall not be deemed to be part of this Agreement. 
  
 10. Severability. In case any provision contained in this Agreement should be invalid, illegal or unenforceable in any respect, the validity, legality and enforceability of the remaining provisions contained herein shall not
in any way be affected or impaired thereby. 
  
 11.
Governing Law. This Agreement shall be governed by, and construed in accordance with, the internal laws of the State of Colorado, without giving effect to the principles of conflicts of law. 
  
 12. Counterparts. This Agreement may be executed in two or more
counterparts, each of which shall constitute an original, but all of which, when taken together, shall constitute but one instrument, and shall become effective when one or more counterparts have been signed by each party hereto and delivered to the
other parties. 
  
 13. Confidential Disclosure
Agreement. Notwithstanding any provision of this Agreement to the contrary, any confidential disclosure agreement previously executed by the Company and the Investor in connection with the transactions contemplated by this Agreement shall remain
in full force and effect in accordance with its terms following the execution of this Agreement and the consummation of the transactions contemplated hereby. 
  

 15 

 14. Successors and Assigns. Except as otherwise expressly provided herein, the provisions
hereof shall inure to the benefit of, and be binding upon, the successors, assigns, heirs, executors and administrators of the parties hereto and shall inure to the benefit of and be enforceable by each person who shall be a holder of the Securities
from time to time. 
  
 15. Further Assurances. Each
party agrees to cooperate fully with the other parties and to execute such further instruments, documents and agreements and to give such further written assurance as may be reasonably requested by any other party to evidence and reflect the
transactions described herein and contemplated hereby and to carry into effect the intents and purposes of this Agreement. 
  

 16 

 EXHIBIT A 
 ACT Teleconferencing, Inc. 
 SECURITIES CERTIFICATE QUESTIONNAIRE

  
 Pursuant to Section 4 of the Agreement, please provide us
with the following information: 
  

			
	 1.      The exact name that your Shares and Warrants are to be registered in (this is the name that will appear
on your stock certificate(s)). You may use a nominee name if appropriate:
	 	 
	 	 	

	 2.      The relationship between the Investor and the registered holder listed in response to item 1
above:
	 	 
	 	 	

	 3.      The mailing address of the registered holder listed in response to item 1 above:
	 	 
	 	 	

	 4.      The Social Security Number or Tax Identification Number of the registered holder listed in the response
to item 1 above:
	 	 
	 	 	

  

 1 

 EXHIBIT B 
  
 ACT Teleconferencing, Inc. 
 INVESTOR QUESTIONNAIRE 
 (all information will be treated confidentially) 
  
 To: ACT Teleconferencing, Inc., 
  
 This Investor Questionnaire (“Questionnaire”) must be completed by each potential investor in connection
with the offer and sale of the shares of the common stock, no par value, Warrants, and shares underlying the Warrants (collectively the “Securities”), of ACT Teleconferencing, Inc. (the “Company”). The Securities
are being offered and sold by the Company without registration under the Securities Act of 1933, as amended (the “Securities Act”), and the securities laws of certain states, in reliance on the exemptions contained in Section 4 of
the Securities Act and on Regulation D promulgated thereunder and in reliance on similar exemptions under applicable state laws. The Company must determine that a potential investor meets certain suitability requirements before offering or selling
Securities to such investor. The purpose of this Questionnaire is to assure the Company that each investor will meet the applicable suitability requirements. The information supplied by you will be used in determining whether you meet such criteria,
and reliance upon the private offering exemption from registration is based in part on the information herein supplied. 
  
 This Questionnaire does not constitute an offer to sell or a solicitation of an offer to buy any security. Your answers will be kept strictly
confidential. However, by signing this Questionnaire you will be authorizing the Company to provide a completed copy of this Questionnaire to such parties as the Company deems appropriate in order to ensure that the offer and sale of the Securities
will not result in a violation of the Securities Act or the securities laws of any state and that you otherwise satisfy the suitability standards applicable to purchasers of the Securities. All potential investors must answer all applicable
questions and complete, date and sign this Questionnaire. Please print or type your responses and attach additional sheets of paper if necessary to complete your answers to any item. 
  

	A.	BACKGROUND INFORMATION 

  

	
	 Name:_____________________________________________________________________________________________________

	 Business Address:_________________________________________________________________________________________

	(Number and Street)
	 _________________________________________________________________________________________________________

	 (City)                                      
                                        
(State)                                       
                              (Zip Code)

	 Telephone Number:
(            )________________________________________________________________________________

	 Residence Address:________________________________________________________________________________________

	(Number and Street)
	 _________________________________________________________________________________________________________

	 (City)                                      
                                        
(State)                                       
                              (Zip Code)

	 Telephone Number:
(            )________________________________________________________________________________

	 If an individual:

	 Age:______                                
Citizenship:_________________                Where registered to vote:______________________

	 If a corporation, partnership, limited liability company, trust or other entity:

	 Type of entity:____________________________________________________________________________________________

	 State of
formation:_______________                                    
                           Date of formation:___________________________

	 Social Security or Taxpayer Identification No.__________________________________________________________________

	 Send all correspondence to (check one): _____ Residence Address
                                        
             ________ Business Address

   

 B-1 

	B.	STATUS AS ACCREDITED INVESTOR 

  
 The undersigned is an “accredited investor” as such term is defined in Regulation D under the Securities Act, as at the
time of the sale of the Securities the undersigned falls within one or more of the following categories (Please initial one or more, as applicable): 
  
              (1) a bank as defined in Section 3(a)(2) of the Securities Act, or a savings and loan
association or other institution as defined in Section 3(a)(5)(A) of the Securities Act whether acting in its individual or fiduciary capacity; a broker or dealer registered pursuant to Section 15 of the Securities Exchange Act of 1934; an insurance
company as defined in Section 2(13) of the Securities Act; an investment company registered under the Investment Company Act of 1940 or a business development company as defined in Section 2(a)(48) of that act; a Small Business Investment Company
licensed by the U.S. Small Business Administration under Section 301(c) or (d) of the Small Business Investment Act of 1958; a plan established and maintained by a state, its political subdivisions, or any agency or instrumentality of a state or its
political subdivisions for the benefit of its employees, if such plan has total assets in excess of $5,000,000; an employee benefit plan within the meaning of the Employee Retirement Income Security Act of 1974 if the investment decision is made by
a plan fiduciary, as defined in Section 3(21) of such act, which is either a bank, savings and loan association, insurance company, or registered investment adviser, or if the employee benefit plan has total assets in excess of $5,000,000 or, if a
self-directed plan, with the investment decisions made solely by persons that are accredited investors;1 

 
              (2) a
private business development company as defined in Section 202(a)(22) of the Investment Adviser Act of 1940; 
  
              (3) an organization described in Section 501(c)(3) of the Internal Revenue Code of 1986, as amended, corporation, Massachusetts or
similar business trust, or partnership, not formed for the specific purpose of acquiring the Securities offered, with total assets in excess of $5,000,000; 
  
              (4) a natural person whose individual net worth, or joint net worth with that
person’s spouse, at the time of such person’s purchase of the Securities exceeds $1,000,000; 
  
              (5) a natural person who had an individual income in excess of $200,000 in each of the two most recent years or joint income with that
person’s spouse in excess of $300,000 in each of those years and has a reasonable expectation of reaching the same income level in the current year; 
  
              (6) a trust, with total assets in excess of $5,000,000, not formed for the specific
purpose of acquiring the Securities offered, whose purchase is directed by a sophisticated person as described in Rule 506(b)(2)(ii) of Regulation D; and 
  
              (7) an entity in which all of the equity owners are accredited investors (as defined
above). 
  

	C.	REPRESENTATIONS 

  
 The undersigned hereby represents and warrants to the Company as follows: 
  
 1. Any purchase of the Securities would be solely for the account of the undersigned and not for the account of any other person or with a view to
any resale, fractionalization, division, or distribution thereof. 
  
 2. The information contained herein is complete and accurate and may be relied upon by the Company, and the undersigned will notify the Company immediately of any material change in any of such information occurring prior to the
closing, if any, with respect to the purchase of Securities by the undersigned or any co-purchaser. 

	1	As used in this Questionnaire, the term “net worth” means the excess of total assets over total liabilities. In computing net worth for the purpose of
subsection (4), the principal residence of the investor must be valued at cost, including cost of improvements, or at recently appraised value by an institutional lender making a secured loan, net of encumbrances. In determining income, the investor
should add to the investor’s adjusted gross income any amounts attributable to tax exempt income received, losses claimed as a limited partner in any limited partnership, deductions claimed for depreciation, contributions to an IRA or KEOGH
retirement plan, alimony payments, and any amount by which income from long-term capital gains has been reduced in arriving at adjusted gross income. 

  

 B-2 

 IN WITNESS WHEREOF, the undersigned has executed this Questionnaire this      day of February,
2004, and declares under oath that it is truthful and correct. 
  

			
	 Fuller & Thaler Behavioral Finance Fund, Ltd.

		
	 By:
	 	 
	 	 	

	 Signature

	 Title:
	 	 
	 	 	

	 	 	 (required for any purchaser that is a
 corporation, partnership, trust or other entity)

  

 B-3 

 EXHIBIT C 
 ACT Teleconferencing, Inc. 
 CERTIFICATE OF SUBSEQUENT SALE 
  
 __________________ 
 __________________ 
 __________________ 
 __________________ 
  

	 	RE:	Sale of Shares of Common Stock of ACT Teleconferencing, Inc. (the “Company”) pursuant to the Company’s Prospectus dated
                        , 2004 (the “Prospectus”) 

  
 Dear Sir/Madam: 
  
 The undersigned hereby certifies, in connection with the sale of shares of Common Stock of the Company included in the table
of Selling Stockholders in the Prospectus, that the undersigned has sold the Shares and/or Warrant Shares pursuant to the Prospectus and in a manner described under the caption “Plan of Distribution” in the Prospectus and that such
sale complies with all applicable securities laws, including, without limitation, the Prospectus delivery requirements of the Securities Act of 1933, as amended. 
  
 Selling Stockholder (the beneficial owner):____________________________________________________________________ 

Record Holder (e.g., if held in name of nominee):_______________________________________________________________ 
 Restricted Stock Certificate No.(s):__________________________________________________________________________ 
 Number of Shares or Warrant Shares Sold:____________________________________________________________________ 
 Date of Sale:____________________________________________________________________________________________ 
  
 In the event that you receive a stock certificate(s) representing more shares
of Common Stock than have been sold by the undersigned, then you should return to the undersigned a newly issued certificate for such excess shares in the name of the Record Holder and BEARING A RESTRICTIVE LEGEND. Further, you should place a stop
transfer on your records with regard to such certificate. 
  

									
	 Dated:____________________
	 	 	 	Very truly yours,
					
	 	 	 	 	 	 	 By:
	 	 
	 	 	 	 	 	 	 	 	

	 	 	 	 	 	 	 Print Name:
	 	 
	 	 	 	 	 	 	 	 	

	 	 	 	 	 	 	 Title:
	 	 
	 	 	 	 	 	 	 	 	

  

	cc:	Gavin J. Thomson 

	    	ACT Teleconferencing, Inc. 

	    	1526 Cole Blvd., Suite 250 

	    	Golden, CO 80401 

  

 C-1 

 EXHIBIT D 
 FORM OF LEGAL OPINION 
  
 Ladies and
Gentlemen: 
  
 We have acted as counsel to ACT Teleconferencing,
Inc., a Colorado corporation (the “Company”), in connection with the preparation, execution and delivery of a Stock Purchase Agreement (the “Agreement”) dated February     , 2004, by and
between the Company and (the “Investor”) and the closing of the stock purchase described therein on February     , 2004. This opinion is provided to the Investor at the request of the Company pursuant to
Section 2 of Annex I to the Agreement. Except as otherwise indicated herein, capitalized terms used in this opinion letter are defined as set forth in the Agreement. 
  
 We have examined certain corporate records, certificates and documents in rendering this opinion. In making such
examinations, we have made certain customary assumptions, such as the genuineness of all signatures, the authenticity of all documents submitted to us as originals, the lack of any undisclosed modifications, waivers or amendments to any agreements
reviewed by us, the conformity to authentic originals of all documents submitted to us as copies and the truth and accuracy of factual statements contained in such documents and certificates. Except as expressly set forth herein, we have also
assumed that the execution, delivery, and performance of any agreements or consents are within the powers of each signatory and have been duly authorized and validly carried out. Our opinions expressed herein are limited to the federal laws of the
United States of America and the laws of the State of Colorado and do not address the laws of any other jurisdiction. 
  
 Based upon and subject to the foregoing and the additional qualifications set forth below, we are of the opinion that: 
  

	1.	Each of the Company and its subsidiaries (the “Subsidiaries”) has been duly incorporated and is validly existing as a corporation in good standing under the laws of
its jurisdiction of organization, with corporate power and authority to own its properties and conduct its business as described in the SEC Reports. 

  

	2.	Each of the Company and its subsidiaries is duly qualified to transact business in each jurisdiction in which the conduct of its business makes such qualification necessary and in
which the failure to so qualify would have a material adverse effect upon the business condition (financial or otherwise) or properties of the Company and its subsidiaries, taken as a whole. 

  

	3.	The shares of common stock sold pursuant to the Agreement (the “Shares”) have been duly authorized, and when issued and paid for in accordance with the terms of the
Agreement, will be validly issued, fully paid and nonassessable. 

  

	4.	The sale of the Shares pursuant to the Agreement does not violate any currently existing preemptive right, co-sale right, registration right, right of first refusal or other similar
right to purchase any shares of Common Stock from the Company pursuant to the Company’s articles of incorporation or bylaws or any agreement to which the Company is a party and which is listed as an exhibit in the SEC Reports.

  

 D-1 

 February         , 2004 
 Page 2 
  

	5.	The issuance of the Warrants pursuant to the Agreement has been duly authorized and the shares of common stock underlying the Warrants (the “Warrant Shares”) will,
when issued upon the exercise of the Warrants be validly issued, fully paid, and nonassessable. 

  

	6.	The authorized capital stock of the Company consists of 25,000,000 shares of Common Stock, no par value, and 2,000,000 preferred shares. 

  

	7.	The Company has the corporate or other applicable power and authority to enter into the Agreement and the Company has the applicable power and authority to issue and sell and
deliver to each Investor such Investor’s respective portion of the Shares and Warrants to be sold and delivered by it pursuant to the Agreement. Except as otherwise provided herein, the Company has the corporate power and authority to register
the resale of the Shares and the Warrant Shares. 

  

	8.	The Agreement has been duly authorized by all necessary corporate or other applicable action on the part of the Company and has been duly executed and delivered by the Company and
is the valid and binding agreement of the Company, enforceable in accordance with its terms. 

  

	9.	At the close of business on the date hereof, the execution, delivery and performance of the Agreement and the consummation of the transactions therein contemplated do not and will
not: (i) conflict with or result in a breach of any of the terms or provisions of, or constitute a default under, the articles of incorporation or by-laws of the Company, or any agreement or instrument listed as an exhibit in the SEC Reports; (ii)
result in the creation of a lien on any material portion of the assets of the Company and its subsidiaries, taken as a whole; or (iii) result in a violation of federal or Colorado law applicable to the Company. 

  

	10.	Assuming that the representations and warranties of the Investor and the Company set forth in the Agreement and the exhibits thereto are true and correct, the offer, sale and
delivery of the Shares and Warrants to the Investor, in the manner contemplated by the Agreement, does not need to be registered under the Securities Act, it being understood that no opinion is expressed as to any subsequent resale of any such
Shares. 

  

	11.	To our knowledge, except as disclosed in the SEC Reports there is no action, suit, claim, proceeding or investigation, at law, in equity or otherwise, or by or before any government
instrumentality or other agency, now pending which if adversely determined would, individually or in the aggregate, have a Material Adverse Effect. 

  

	12.	The Company is currently eligible to register the resale of Common Stock in a secondary offering on a registration statement on Form S-3 under the Securities Act.

  

	13.	The Shares are “Covered Securities” pursuant to the definition of that term in Section 18(b) of the Securities Act. 

  
 At the time the SEC Reports were filed and in connection with this
transaction, we reviewed and had telephone conversations primarily with the Chief Financial Officer of the Company and his staff regarding the contents of the SEC Reports. Although we are not passing upon and have not independently checked or
verified the accuracy, completeness, or fairness of the statements contained in the SEC Reports, and our involvement in their preparation was limited to the review and telephone conversations set forth above, we advise you that we did not have and
do not have actual knowledge, as of the date of the Agreement or the date hereof, that the SEC Reports (except as to the financial 

  

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 February         , 2004 
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statements, including the notes thereto and related schedules and other financial, statistical, and accounting data included or incorporated by reference
therein or which should have been included or incorporated by reference therein, as to which we are not called upon to and do not advise you), when taken as a whole, contained, at their time of filing, an untrue statement of a material fact or
omitted, at their time of filing, a material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading. 
  
 For purposes of the opinions set forth above in paragraphs 1 and 2 with
respect to the good standing of the Company and its qualification to do business in identified states, we are relying solely upon relevant certificates from such states, and on representations of officers of the Company with respect to jurisdictions
outside the United States. We express no opinion with respect to such matters beyond the date of the stock certificates. 
  
 The opinions set forth above in paragraph 8 are subject to and limited by the following: 
  

	 	(a)	the effect of bankruptcy, insolvency, reorganization, moratorium and other similar laws and legal and equitable principles relating to, limiting or affecting the enforcement of
creditors’ rights generally including, without limitation, preferences and fraudulent conveyances and concepts of materiality, reasonableness, good faith, fair dealing and unconscionability; 

  

	 	(b)	the discretion of courts in awarding equitable remedies (regardless of whether considered in a proceeding in equity or at law), including, but not limited to, specific performance
or injunctive relief; 

  

	 	(c)	we express no opinion with respect to the enforceability of the indemnification and contribution provisions of the Agreement; and 

  

	 	(d)	we express no opinion as to the application or contravention of provisions of the federal Bankruptcy Code and comparable provisions of state law or of any antifraud laws, antitrust
or trade regulation laws. 

  
 The opinion set forth
above in paragraph 9 is based upon our consideration of only those statutes, rules and regulations which in our experience are normally applicable to transactions such as those contemplated by the Agreement. 
  
 We are relying in part as to certain factual matters in an Officer’s
Certificate. We have not undertaken any independent investigation to determine the existence or nonexistence of such facts, and no inference as to our knowledge of the existence of such facts should be drawn from the fact of our representation of
the Company in this or other matters. Similarly, whenever our opinion herein with respect to the existence or nonexistence of facts is qualified by the phrase “to our knowledge”, or any similar phrase implying a limitation on the
basis of knowledge, such phrase means only that the individual attorneys in this firm who have devoted or are devoting substantive legal services to the Company and do not have actual knowledge that the facts as stated herein are untrue. Such
persons have not undertaken any investigation to determine the existence or nonexistence of such facts in connection with the preparation of this opinion, and no inference as to the extent of their investigation should be drawn from the fact of our
representation of the Company in this or any other instance. 
  

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 This opinion letter is rendered solely for your benefit in connection with the Agreement, and may not
be relied upon for any other purpose, or furnished to, used, circulated, quoted or referred to by any other person without our prior written consent. 
  
 Very truly yours, 
  
 FAEGRE & BENSON LLP 
  

 D-4

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