Document:

SHARE
PURCHASE AGREEMENT

     

    THIS SHARE PURCHASE AGREEMENT
(this “Agreement”) is made
and entered into as of the _____ day of August, 2010 (the “Effective Date”),
by and between DOCUMENT CAPTURE TECHNOLOGIES, INC., a Delaware corporation
(“Company”),
and NCR CORPORATION, a Maryland corporation (“Investor”).

     

    WITNESSETH:

     

    WHEREAS, Company proposes to
issue and sell to Investor, and Investor proposes to acquire from Company,
3,861,004 shares of Company’s common stock, par value $0.001 per share
(the “Shares”), at a price
per Share of $1.036, for a total purchase price of $4,000,000 (the “Purchase Price”);

     

    NOW, THEREFORE, for and in
consideration of the mutual covenants, agreements and warranties herein
contained, the parties hereby agree as follows:

     

    ARTICLE
1

     

    DEFINITIONS
AND INTERPRETATION

     

    1.1         Certain
Definitions.  For purposes of
this Agreement, the following terms shall have the meanings specified in this
Section 1.1:

     

    “Affiliate” means, as
to any Person, (a) any Subsidiary of such Person, and (b) any other
Person which, directly or indirectly, controls, is controlled by, or is under
common control with, such Person and includes, in the case of a Person other
than an individual, each officer, director, general partner or member of such
Person, and each Person who is the beneficial owner of 5% or more of such
Person’s outstanding stock having ordinary voting power of such
Person.  For the purposes of this definition, “control” means the
possession of the power to direct or cause the direction of management and
policies of such Person, whether through the ownership of voting securities, by
contract or otherwise.

     

    “Business” means the
business of Company and its Subsidiaries, including the design, development,
manufacture and sale of compact page-fed scanners and other document capture
technology products and solutions to governmental agencies, corporations and
other enterprises (including original equipment manufacturers, private label
brands, value added resellers and small office-home office), professional
practices and other consumers, for, among other things, bank note and check
verification (remote capture deposit), document and information management,
identification card scanners, passport security scanners, business card readers,
barcode scanning and optical mark readers used in lottery
terminals.

     

    “Business Day” means
any day other than a weekend day or any other day on which commercial banks in
the State of New York are authorized or required to close.

     

    “Code” means the
Internal Revenue Code of 1986, as amended, and the rules and regulations adopted
thereunder.

     

    “Common Stock” means
the common stock, par value $0.001 per share, of Company.

     

    
      
         

      

      
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    “Company Benefit Plan”
means each “employee benefit plan” within the meaning of Section 3(3) of ERISA,
including each “multiemployer plan” within the meaning of Section 3(37) of ERISA
and each other stock purchase, stock option, restricted stock, severance,
retention, employment, consulting, change-of-control, bonus, incentive
(equity-based or otherwise), deferred compensation, welfare benefit, fringe
benefit and other benefit plan, agreement, program, policy, commitment or other
arrangement, whether or not subject to ERISA, in each case sponsored, maintained
or contributed to, or required to be sponsored, maintained or contributed to, by
Company or any of its Subsidiaries or with respect to which Company or any of
its Subsidiaries has any liability.

     

    “Company Necessary
Intellectual Property” means licenses, information, materials, processes,
technology, and Intellectual Property and proprietary rights necessary to
conduct the Business as conducted as of the Effective Date and as proposed to be
conducted as of the Effective Date.

     

    “Company Owned Intellectual
Property” means all Intellectual Property owned by Company as of the
Effective Date.

     

    “Company Option Plans”
means, collectively, the Company’s 2002 Amended and Restated Stock Option Plan,
2006 Stock Option Plan, 2009 Stock Option Plan and 2010 Stock Option
Plan.

     

    “Contract” means any
contract, agreement, license, note, bond, mortgage, indenture, commitment, lease
or other instrument or obligation, whether written or oral.

     

    “ERISA” means the
Employment Retirement Income Security Act of 1974, as amended.

     

    “Exchange Act” means
the Securities Exchange Act of 1934, as amended, and the rules and regulations
promulgated thereunder.

     

    “GAAP” means
accounting principles generally accepted in the United States of
America.

     

    “Governmental
Authority” means any federal, state, local or foreign government or
governmental regulatory body of any nature (including, without limitation, the
SEC and any self-regulatory authority, such as Nasdaq or the New York Stock
Exchange) and any of their respective subdivisions, agencies, instrumentalities,
authorities, courts or tribunals, and the officials and representatives of any
of them.

     

    “Intellectual
Property” means patents, patent applications, trade names, trademarks,
service marks, trademark and service mark applications, domain names,
copyrights, trade secrets, mask works, and any other intellectual
property.

     

    “Investor Rights
Agreement” means that certain Investor Rights Agreement, of even date
herewith, between Company and Investor, the form of which is attached hereto as
Exhibit A.

     

    “Law” means any
federal, state, local or foreign law, ordinance, order, rule, regulation,
bulletin, ruling, guideline, enforcement policy, license or permit, including
both statutory and judge-made (common) law, and any order, writ, judgment,
award, injunction, or decree of any court or arbitrator or any Governmental
Authority of the United States of America, any state or political subdivision
thereof or any foreign Governmental Authority.

     

    “Material Adverse
Effect” means a material adverse effect on the business, financial
condition, operations or prospects of the business of Company and its
Subsidiaries taken as a whole or on the ability of Company to timely consummate
the transactions contemplated hereby, except to the extent that any such
material adverse effect results or arises directly from one or more of the
following:  (a) changes in general United States or world
economic or business conditions that do not disproportionately affect Company as
compared to Company’s competitors; (b) the announcement of this Agreement
or the pendency of the transactions contemplated hereby; (c) acts of
terrorism, war or other military conflict, earthquake, fire, storm, flood or
other acts of God; (d) any fees or expenses incurred in connection with the
transactions contemplated by this Agreement; and (e) changes in applicable
Laws or GAAP.

     

    
      
         

      

      
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    “Material Contract”
means any Contract of Company or any of its
Subsidiaries:  (a) that is a “material contract” (as such term is
defined in Item 601(b)(10) of Regulation S-K promulgated under the Securities
Act) to be performed in full or in part after the date of this Agreement;
(b) that constitutes a contract or commitment relating to material
indebtedness of Company or its Subsidiaries for borrowed money; (c) with
any customer of Company or any of its Subsidiaries (including OEM, distribution
and reseller agreements) under which Company and its Subsidiaries received gross
revenues in excess of $150,000 for goods and services sold during fiscal year
2009, or under which Company reasonably expects to receive gross revenues in
excess of $500,000 for goods and services sold by Company or its Subsidiaries
during fiscal year 2010; (d) under which Company reasonably expects to pay,
or be obligated to pay, in excess of $25,000 in licensing, royalty or similar
fees during fiscal year 2010; (e) with vendors and suppliers to the
Business (including suppliers of parts used or incorporated in the products of
Company and its Subsidiaries) under which Company and its Subsidiaries paid in
excess of $100,000 during fiscal year 2009, or under which Company and its
Subsidiaries reasonably expect to pay in excess of $100,000 during fiscal year
2010; (f) with Syscan Imaging Limited or any of its Affiliates (including
Shenzen Syscan Tech), including any Contracts relating to the manufacture of
products marketed or sold by Company and its Subsidiaries; or (g) that
contains any provision that would prohibit or materially restrict the ability of
Company or any of its Subsidiaries to operate in any geographical area or
compete or operate in any line of business.

     

    “Material Permits”
means those Permits that are necessary to the continued conduct of the Business
in all material respects.

     

    “Option” means the
option to purchase up to an additional $4,000,000 of Common Stock granted by
Company to Investor under Article 4 of the
Investor Rights Agreement.

     

    “Option Shares” means
the shares of Common Stock issuable upon exercise, in whole or in part, of the
Option.

     

    “Permits” means any
licenses, permits, certificates, approvals, exemptions, franchises,
registrations, variances, accreditations or authorizations issued by any
Governmental Authority.

     

    “Person” means any
individual, corporation, partnership, joint venture, association, limited
liability company, joint stock company, trust, or unincorporated association, or
any Governmental Authority, officer, department, commission, board, bureau or
instrumentality thereof.

     

    “SEC” means the United
States Securities and Exchange Commission.

     

    “Securities” means,
collectively, the Shares, the Option and the Option Shares.

     

    “Securities Act” means
the Securities Act of 1933, as amended, and the rules and regulations
promulgated thereunder.

     

    “Subsidiary” means any
Person of which (a) a majority of the outstanding share capital, voting
securities or other equity interests are owned, directly or indirectly, by
Company or (b) Company is entitled, directly or indirectly, to appoint a
majority of the board of directors, board of managers or comparable body of such
Person.

    
      
         

      

      
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    “Syscan” means Syscan,
Inc., a California corporation and wholly-owned subsidiary of
Company.

     

    “Tax” means any
foreign, federal, state, local or other income, profits, margin gross receipts,
franchise, sales, use, goods and services, occupation, employment, unemployment
(whether denominated an unemployment tax, compensation or insurance) property
(real, personal, or intangible), business license, privilege, excise or other
tax, assessment, fee or governmental charge, including amounts relating to
abandoned, dormant or escheated property (and including all interest, penalties,
collection fees and similar charges in relation to any of the
foregoing).

     

    1.2         Interpretation.

     

    (a)           In
this Agreement, unless a clear contrary intention appears, the singular number
includes the plural number and vice versa; reference to any gender includes each
other gender; reference to any agreement, document or instrument means such
agreement, document or instrument as amended or modified and in effect from time
to time in accordance with the terms thereof; “hereunder,” “hereof,” “hereto,”
and words of similar import shall be deemed references to this Agreement as a
whole and not to any particular Article, Section or other provision hereof;
“including” (and with correlative meaning “include”) means including without
limiting the generality of any description preceding such term; “or” is used in
the inclusive sense of “and/or”; with respect to the determination of any period
of time, “from” means “from and including” and “to” means “to but excluding”;
and references to documents, instruments or agreements shall be deemed to refer
as well to all addenda, exhibits, schedules or amendments thereto.

     

    (b)           The
parties hereto have participated jointly in the negotiation and drafting of this
Agreement and, in the event an ambiguity or question of intent or interpretation
arises, this Agreement shall be construed as jointly drafted by the parties
hereto and no presumption or burden of proof shall arise favoring or disfavoring
any party by virtue of the authorship of any provision of this
Agreement.

     

    ARTICLE
2

     

    PURCHASE
AND SALE OF SHARES

     

    2.1         Purchase
and Sale.  Upon the basis of
the representations and warranties and subject to the other terms and conditions
set forth herein, on the Effective Date, Company shall issue and sell to
Investor, and Investor shall accept and purchase from Company, the
Shares.

     

    2.2         Closing,
Payment and Delivery.  The closing of
the purchase and sale of the Shares (the “Closing”) will take
place on the Effective Date at the offices of Womble Carlyle Sandridge &
Rice, PLLC, 271 17th Street, NW, Suite 2400 Atlanta, GA 30363-1017, upon
confirmation that the conditions to Company’s and Investor’s obligations to
effect the Closing have been satisfied or waived.  At the Closing,
payment of the Purchase Price for the Shares shall be made to the Company by
Federal Funds wire transfer against delivery to Investor of a certificate
representing the Shares.

     

    ARTICLE
3

     

    REPRESENTATIONS
AND WARRANTIES OF COMPANY

     

    Except as
set forth in the disclosure letter delivered by Company to Investor prior to the
execution of this Agreement (the “Company Disclosure Letter”),
Company hereby represents and warrants to Investor as follows:

    
      
         

      

      
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    3.1         Organization.  Company and each
of its Subsidiaries is duly organized, validly existing and in good standing
under the Laws of the jurisdiction of its incorporation, and has the necessary
corporate power and authority to own its properties and conduct its business as
currently conducted.  Company and each of its Subsidiaries is duly
qualified to do business and in good standing as a foreign corporation in each
state or other jurisdiction in which it conducts business.  Company
has provided Investor with a complete list of each state or other jurisdiction
where Company and each of its Subsidiaries is qualified to do business, which
constitute all of the states and jurisdictions in which the ownership of
property or the conduct of business by Company and/or its Subsidiaries requires
such qualification.  The operations now being conducted by Company and
its Subsidiaries are not now and have never been conducted by Company or any of
its Subsidiaries under any other name.

     

    3.2         Authority.  Company has all
requisite power and authority to enter into, and to perform its obligations and
consummate the transactions contemplated under, this Agreement and any and all
agreements, documents and instruments contemplated hereby or thereby
(collectively, the “Transaction Documents”).  On
or prior to the Effective Date, the execution and delivery of, and the
performance of the transactions contemplated by, this Agreement and the other
Transaction Documents have been duly authorized by all necessary corporate
action on the part of the Company (including, if necessary, by a majority of the
non-interested members of Company’s board of directors), and no other corporate
action, proceeding or approval, including, without limitation, the vote of any
holders of any outstanding class or series of capital stock of Company, is
required on the part of Company to authorize, or to consummate the transactions
contemplated by, this Agreement or any of the other Transaction
Documents.

     

    3.3         Enforceability.  This Agreement
and each other Transaction Document has been validly executed and delivered by
Company and, assuming the due authorization, execution and delivery by the other
parties hereto and thereto, will constitute a valid and binding obligation of
Company enforceable in accordance with its terms, subject to the effect, if any,
of (a) applicable bankruptcy and other similar Laws affecting the rights of
creditors generally and (b) rules of Law governing specific performance,
injunctive relief and other equitable remedies.

     

    3.4         Capitalization.

     

    (a)           As
of the Effective Date, the authorized capital stock of Company consists of
(i) 50,000,000 shares of authorized Common Stock, of which 19,406,270
shares are issued and outstanding, and (ii) 2,000,000 shares of preferred
stock, par value $0.001 per share, which includes 60,000 shares designated as
Series A Preferred Stock, of which no shares are issued and outstanding, and
30,000 shares designated as Series B Preferred Stock, of which no shares are
issued and outstanding.  Except as set forth in the immediately
preceding sentence, no shares of capital stock or other securities of Company
are issued, reserved for issuance (except as set forth in Section 3.4(b)
below) or outstanding.  Company has provided Investor with a true,
correct and complete list of the holders of record (including each such holder’s
address of record and number of shares held of record) dated as of the most
recent practicable date prior to the Effective Date.  All outstanding
shares of Common Stock are duly authorized, validly issued, fully paid and
non-assessable and not subject to preemptive rights created by statute, the
certificate of incorporation or the bylaws of Company or any agreement to which
Company is a party or by which it is bound.  All outstanding shares of
Common Stock have been issued in compliance with the Securities Act, other
applicable Laws, including state Blue Sky laws, and any preemptive right or
right of first refusal.

    
      
         

      

      
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    (b)           Company
has reserved 17,075,000 shares of Common Stock for issuance pursuant to the
Company Option Plans, of which, on the Effective Date, 13,894,498 shares are
subject to outstanding, unexercised options, 1,421,667 shares remain available
for future grant and 1,758,835 shares have been issued pursuant to the exercise
of options issued under the Company Option Plans (1,750,000 shares issued and
8,835 cancelled as a result of cashless exercises).  Company has
provided Investor with a true, complete and correct list of each outstanding
option to acquire Common Stock under the Company Option Plans, and each
outstanding warrant to acquire Common Stock, which list sets forth, for each
such outstanding option or warrant, the name of the Company Option Plan under
which it was issued (if applicable), the name of the holder thereof, the number
of shares of Common Stock subject thereto, the exercise price of such option or
warrant, the vesting schedule for such option or warrant, the date of expiration
of such option or warrant, and whether the exercisability of such option or
warrant will be accelerated by reason of the transactions contemplated by the
Transaction Documents.  Except for the options and warrants set forth
on such list, there are no options, warrants, calls, rights, commitments or
agreements of any character, written or oral, to which Company is a party or by
which it is bound obligating Company to issue, deliver, sell, repurchase or
redeem, or cause to be issued, delivered, sold, repurchased or redeemed, any
shares of the capital stock of Company or obligating Company to grant, extend,
accelerate the vesting of, change the price of, otherwise amend or enter into
any such option, warrant, call, right, commitment or agreement.  There
are no outstanding or authorized stock appreciation, phantom stock, profit
participation, or other equity-based compensation awards or similar rights
(whether payable in cash or otherwise) with respect to Company, nor is there a
commitment to issue any such award or right.  Except as contemplated
hereby, there are no voting trusts, proxies, or other agreements or
understandings with respect to the voting stock of Company.

     

    (c)           Company
has provided Investor with true, correct and complete capitalization tables as
of the time immediately prior to the Closing and as of the time immediately
following the Closing and purchase of the Shares by Investor, in each case, on
both a then-outstanding and on a fully-diluted, as-converted basis.

     

    3.5         No Registration Required;
Valid Issuance.

     

    (a)           Assuming
the accuracy of the representations and warranties of Investor contained in
Article 4
hereof and its compliance with its agreements set forth therein, it is not
necessary in connection with the offer, sale and delivery of the Shares to
Investor pursuant to this Agreement or the transactions contemplated by this
Agreement or any of the other Transaction Documents to register any of the
Securities under the Securities Act.  Neither Company nor any
Affiliate of Company has directly, or through any agent, sold, offered for sale,
solicited offers to buy or otherwise negotiated in respect of, any “security”
(as defined in the Securities Act), which sale, offer, solicitation or
negotiation is or will be integrated with the offer and sale of the Shares in a
manner that would require the registration under the Securities Act of the
Shares.

     

    (b)           The
Shares, when issued, sold and delivered in accordance with the terms of this
Agreement for the consideration provided for herein, will be duly and validly
issued, fully paid and nonassessable, and will be issued free of any preemptive
or similar rights.

     

    (c)           The
Option Shares have been duly authorized and validly reserved for issuance upon
exercise of the Option, and, upon exercise of the Option in accordance with the
terms of the Investor Rights Agreement, will be issued free of any preemptive or
similar rights.  Company has reserved a sufficient number of shares of
Common Stock to permit the exercise, in full, of the Option (assuming all
conditions to such exercise have been satisfied).  The Option Shares,
when issued upon exercise of the Option in accordance with the terms of the
Investor Rights Agreement, will be duly and validly issued and fully paid and
nonassessable.

    
      
         

      

      
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    3.6         Subsidiaries.  Other than
Syscan, Company does not have and has never had any subsidiaries or affiliated
companies, and does not otherwise own and has never otherwise owned any shares
of capital stock or any interest in, or control, directly or indirectly, any
other corporation, partnership, association, joint venture or other business
entity or have any ongoing obligation to purchase any shares of capital stock or
make any investment or capital contribution with respect thereto; nor is Company
responsible in any way for any similar obligation with respect to any other
entity.  The authorized capital stock of Syscan consists of 10,000
shares of common stock, no par value per share, all issued and outstanding
shares of which are owned, beneficially and of record, by
Company.  All outstanding shares of the capital stock of Syscan are
duly authorized, validly issued, fully paid and non-assessable and not subject
to preemptive rights created by statute, their respective charter documents or
any agreement of which Company or Syscan is a party or by which it is
bound.  All outstanding shares of capital stock of Syscan have been
issued in compliance with the Securities Act, other applicable Laws, including
state Blue Sky laws, and any preemptive right or right of first
refusal. There are no options, warrants, rights, commitments or agreements
of any character, written or oral, to which any Subsidiary is a party or by
which any Subsidiary is bound obligating such Subsidiary to issue, deliver,
sell, or cause to be issued, delivered, sold, any shares of the capital stock of
such Subsidiary.

     

    3.7         SEC Filings and Certain
Securities Matters.

     

    (a)           Company
has timely filed or furnished all forms, statements, certifications, reports and
documents required to be filed with, or furnished to, the SEC pursuant to the
Exchange Act since December 31, 2008 (the forms, statements, reports and
documents filed or furnished with the SEC since December 31, 2008, including any
exhibits and amendments thereto, the “Company SEC Documents”).  Each
of the Company SEC Documents, at the time of its filing or furnishing (except as
and to the extent such Company SEC Document has been modified or superseded in
any subsequent Company SEC Document filed with, or furnished to, the SEC prior
to the date of this Agreement), complied with the applicable requirements of
each of the Exchange Act and the Securities Act.  As of their
respective dates, except as and to the extent modified or superseded in any
subsequent Company SEC Document filed or furnished with the SEC prior to the
date of this Agreement, the Company SEC Documents did not contain any untrue
statement of a material fact or omit to state a material fact required to be
stated therein or necessary to make the statements made therein, in light of the
circumstances in which they were made, not misleading.  To Company’s
knowledge, as of the date of this Agreement, none of the Company SEC Documents
is the subject of ongoing SEC review, outstanding SEC investigation or
outstanding SEC comment.

     

    (b)           Company
and each of its Subsidiaries maintain disclosure controls and procedures as
required by Rule 13a-15 under the Exchange Act.  These disclosure
controls and procedures were designed to ensure that (i) material
information required to be disclosed by Company in the reports that it files or
submits under the Exchange Act is recorded, processed, summarized and reported
within the time periods specified in the rules and forms of the SEC and
(ii) all such information is accumulated and communicated to Company’s
management as appropriate to allow timely decisions regarding disclosure and to
make the certifications of the principal executive officer and principal
financial officer of Company required under the Exchange Act with respect to
such reports.

     

    (c)           Company
and each of its Subsidiaries maintain a system of internal accounting controls
sufficient to provide reasonable assurance that (i) transactions are
executed in accordance with management’s general or specific authorization;
(ii) transactions are recorded as necessary to permit preparation of
financial statements in conformity with GAAP; (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 existing assets at reasonable intervals and appropriate action is taken
with respect to any differences.  Since December 31, 2008, there has
been (x) no material weakness in Company’s internal control over financial
reporting (whether or not remediated) and (y) no change in Company’s
internal control over financial reporting that has materially affected, or is
reasonably likely to materially affect, Company’s internal control over
financial reporting.

    
      
         

      

      
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    (d)           There
is and has been no failure on the part of Company or any of Company’s directors
or officers, in their capacities as such, to comply with any provision of the
Sarbanes-Oxley Act of 2002 and the rules and regulations promulgated in
connection therewith applicable to Company or any of its directors or officers,
including Section 402 related to loans and Sections 302 and 906 related to
certifications.

     

    (e)           Company
is not, and is not an Affiliate of, an “investment company” within the meaning
of the Investment Company Act of 1940, as amended.

     

    (f)           Company
has not received notice from the OTC, any stock exchange, market or trading
facility on which the Common Stock is or has been listed (or on which it has
been quoted) to the effect that Company is not in compliance with the listing or
maintenance requirements of such exchange, market or trading
facility.  Company is, and has no reason to believe that it will not
in the foreseeable future continue to be, in compliance with all such listing
and maintenance requirements.

     

    (g)           There
are no contracts, agreements or understandings between Company and any Person
granting such Person the right to require Company to file a registration
statement under the Securities Act with respect to any securities of
Company.

     

    3.8         Financial
Reports.

     

    (a)           Each
of the consolidated balance sheets, statements of income, changes in
stockholders’ equity and cash flows of Company and its Subsidiaries included in
or incorporated by reference into the Company SEC Documents (including any
related notes and schedules) (collectively, the “Financial Statements”)
(i) fairly presents the consolidated financial position of Company and its
Subsidiaries as of the date of each such balance sheet, and the results of
operations and cash flows of Company and its Subsidiaries, as the case may be,
for the periods set forth in each such consolidated statement of income, changes
in stockholders’ equity and cash flows (subject, in the case of unaudited
statements, to the absence of notes and normal year-end audit adjustments), and
(ii) has in each case been prepared (A) in accordance with GAAP
consistently applied during the periods involved, except as may be noted therein
or in the notes thereto, and (B) in accordance with the requirements of
Regulation S-X, as promulgated by the SEC.

     

    (b)           Hein
& Associates LLP, whose report on the consolidated financial statements of
Company and its Subsidiaries is included in Company’s Annual Report on Form 10-K
for the fiscal year ended December 31, 2009, are independent registered public
accountants as required by the Exchange Act and by the rules of the Public
Company Accounting Oversight Board.

     

    3.9         No
Undisclosed Liabilities.  Other than
liabilities or obligations incurred (a) in the conduct of the Business
since March 31, 2010 in the ordinary course and consistent with past practice,
or (b) in connection with the execution of this Agreement and the
performance of the transactions contemplated hereby, Company and its
Subsidiaries do not have any liability, indebtedness, obligation, expense,
claim, deficiency, guaranty or endorsement of any type, whether accrued,
absolute, contingent, matured, unmatured or other (whether or not required to be
reflected in financial statements in accordance with GAAP) which is not provided
for in the amounts reflected on, or reserved against, in Company’s consolidated
balance sheet as of March 31, 2010 (or the notes thereto) included in the
Financial Statements.  Neither Company nor any of its Subsidiaries are
directly or indirectly liable upon or with respect to (by discount, repurchase
agreements or otherwise), or obliged in any other way to provide funds in
respect of, or to guarantee or assume, any debt, obligation or dividend of any
Person, except endorsements in the ordinary course of business consistent with
past practice in connection with the deposit, in banks or other financial
institutions, of items for collection.

    
      
         

      

      
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    3.10       Books and
Records.

     

    (a)           Company
has delivered to Investor (i) true, correct and complete copies of the
certificates of incorporation and bylaws or comparable organizational documents
of Company and each of its Subsidiaries, in each case as amended and in effect
on the Effective Date, including all amendments thereto, and (ii) a true,
correct and complete list of the current directors and officers of the Company
and each of its Subsidiaries.

     

    (b)           The
minute books of Company and each of its Subsidiaries previously made available
to Investor contain true, correct and complete records of all meetings and
accurately reflect all other corporate action of the stockholders and board of
directors (including committees thereof) of Company and its
Subsidiaries.  The stock certificate books and stock transfer ledgers
of Company and its Subsidiaries previously made available to Investor are true,
correct and complete.

     

    (c)           The
books of account and other financial records of Company and its Subsidiaries
fairly and accurately provide the basis for the financial position and results
of operations set forth in the Financial Statements.

     

    3.11       No
Material Adverse Effect.  Since March 31,
2010, there has not occurred a Material Adverse Effect and Company and its
Subsidiaries have operated their business only in the ordinary course of
business consistent with past practice.

     

    3.12       No
Conflict or Default.  None of the
execution, delivery and performance of this Agreement and each other Transaction
Document, the compliance with its and their respective provisions by Company,
the issuance and sale of the Shares to Investor, the grant of the Option to
Investor, or the issuance of the Option Shares will:  (a) result
in any violation, or the breach of, constitute a default, give rise to any right
of modification, termination, cancellation or acceleration under, or result in
the creation or imposition of a lien or encumbrance under any agreement,
indenture, mortgage, or other instrument to which Company or any of its
Subsidiaries or any of their properties or assets (whether tangible or
intangible) is a party or, as the case may be, subject; (b) contravene or
conflict with, or result in any violation or breach of, any Permit of Company or
any of its Subsidiaries; (c) violate any applicable Laws; or
(d) conflict with, or result in, the breach of any of the terms of the
certificate of incorporation, bylaws, or other charter documents of Company or
any of its Subsidiaries.  The consummation of the transactions
contemplated by this Agreement and each other Transaction Document will not
require the consent of any Person with respect to the rights, licenses,
franchises, leases, contracts or agreements of Company.

     

    3.13       Required
Filings and Approvals.  No action,
consent, approval, order, notice to, or authorization of, or registration,
declaration or filing with, any Governmental Authority or other third party is
required to be obtained or made by Company in connection with the execution,
delivery, and performance of this Agreement or any other Transaction Document,
or the consummation by Company of the transactions contemplated hereby and
thereby, and the fulfillment of and compliance with the terms and conditions
hereof and thereof.

    
      
         

      

      
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    3.14       Compliance with Laws and
Permits.

     

    (a)           The
Business has been and is being conducted in compliance in all material respects
with all Laws, and Company has not received from any Governmental Authority any
written or oral notice of any violation or alleged violation of any
Law.

     

    (b)           The
Material Permits constitute all of the licenses, permits, provider numbers,
certificates, approvals, exemptions, franchises, registrations, variances,
accreditations or authorizations of any Governmental Authority used or required
for the operation of the Business in all material respects.  The
Material Permits are valid and in full force and effect and there are no pending
or, to Company’s knowledge, threatened proceedings which could reasonably be
expected to result in the termination, revocation, limitation or impairment of
any of such Permits.  No violations have been recorded in respect of
any of the Material Permits.  True, correct and complete copies of all
Material Permits have been provided to Investor.

     

    3.15       Legal
Proceedings.  There is no
claim, litigation, suit, action, arbitration, proceeding, or investigation, nor
has Company received notice of any claim or investigation pending or, to
Company’s knowledge, threatened against, relating to, or involving Company, any
of its Subsidiaries, the Business, or their assets before any Governmental
Authority.  To Company’s knowledge, there does not exist any
reasonable ground or basis for any claim, litigation, suit, action, arbitration,
proceeding, or investigation by any third party against, relating to, or
involving Company, any of its Subsidiaries, the Business, or their assets before
any Governmental Authority.  None of Company, any of its Subsidiaries,
the Business, or their assets is subject to any judgment, decree, injunction,
rule, or order of any Governmental Authority or arbitration panel.

     

    3.16       Tax
Matters.

     

    (a)           Company
has timely filed and delivered all Tax returns, certificates, forms, estimates
and reports (collectively “Returns”) required to
be filed by it and all such Returns are true, complete and correct in all
material respects or necessary to sustain the tax position adopted by Company
therein.

     

    (b)           Company
has paid all Taxes imposed upon, or claimed to be owed by, Company or any of its
Subsidiaries, or in respect of the Business or their assets, which are in any
case due and payable or claimed by any taxing authority to be due and payable,
except such Taxes, if any, which are being contested in good faith, through
periods ending on or before the Effective Date, and there are no Tax liens on
Company, any of its Subsidiaries or any of their assets.  Company and
its Subsidiaries have provided for any Taxes that are not yet due and payable
for all taxable periods on the most recent financial statements contained in the
Company SEC Documents to the extent required by GAAP or in the case of foreign
entities, in accordance with generally applicable accounting principles in the
relevant jurisdiction.

     

    (c)           Company
has not contacted, and has not been contacted by, a Governmental Authority
relating to, and has no knowledge of, any alleged Tax deficiency, audit,
assessment, examination, investigation, possible assertion of nexus, voluntary
disclosure, offer in compromise or similar Tax inquiry, in each case relating to
Company or any of its Subsidiaries, or to the Business or their assets, which
has not been fully and finally resolved prior to the Effective
Date.

     

    (d)           Company
has not engaged in any “reportable transaction” or similar tax shelter or income
shifting measure under the Tax Laws.

    
      
         

      

      
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    (e)           Neither
Company nor any of its Subsidiaries is a party to any Tax sharing or similar Tax
agreement (other than an agreement exclusively between or among Company and its
Subsidiaries) pursuant to which it will have any obligation to make any payments
on account of Taxes after the Effective Date.  Neither Company nor any
of its Subsidiaries has any liability as a result of being or having been,
before the Effective Date, a member of an affiliated, consolidated, combined or
unitary group, or as a result of a Tax sharing, Tax indemnity or Tax allocation
agreement.

     

    3.17       Intellectual
Property.

     

    (a)           Company
has furnished Investor with a true, correct, and complete list of all Company
Owned Intellectual Property, but in the case of copyrights, only registered
copyrights, and in the case of trade secrets, only material trade
secrets.  Company has, through ownership, license or other agreement
sufficient legal rights to all Company Necessary Intellectual Property,
including to conduct the Business as conducted as of the Effective Date and as
proposed to be conducted as of the Effective Date without any conflict with, or
infringement of, the rights of any other Person.  The Company Owned
Intellectual Property is owned by Company free and clear of all liens,
encumbrances, or payments of any kind.  Company has taken reasonably
appropriate measures to protect the Company Owned Intellectual Property, any
Company Necessary Intellectual Property which it is required to protect, and the
confidential and proprietary nature of the same.  Company has not
breached any agreement or license associated with any Company Necessary
Intellectual Property, and no such breach has been claimed by any
Person.

     

    (b)           No
product or service made, marketed, provided, or sold (or proposed to be made,
marketed, provided, or sold) by Company (including, without limitation, products
that include or services that relate to Company’s “G5” or “Gen 5” controller, as
well as such controller itself) violates or will violate any license, or
infringes or will infringe, any Intellectual Property rights of any other
Person, other than any such violations or infringements that are both unknown to
Company and have not had and could not reasonably be expected to have,
individually or in the aggregate, a Material Adverse Effect.  Company
has not received any communications (whether written or oral) alleging that
Company has violated or, by conducting the Business, would violate any
Intellectual Property rights of any other Person.

     

    (c)           Other
than commercially available non-exclusive end-user object code software license
agreements, there are no outstanding options, licenses, agreements, claims,
encumbrances, or shared ownership interests of any kind relating to the Company
Owned Intellectual Property, nor is Company bound by or a party to any options,
licenses, or agreements of any kind with respect to any Intellectual Property of
any other Person.

     

    (d)           Company
has obtained and possesses valid licenses to use all of the software programs
present on the computers and other software-enabled electronic devices that it
owns or leases or that it has otherwise provided to its employees for their use
in connection with the Business.  Company has not embedded any open
source, copyleft, or community source code in any of its products generally
available or in development, including, but not limited, to any libraries or
code licensed under any General Public License, Lesser General Public License,
or similar license arrangement.

     

    (e)           Each
employee and consultant of Company has assigned to Company all inventions and
intellectual property rights he or she may have had or owned that resulted from
activities engaged in by him or her while employed by Company and related to the
Business or his or her activities associated with the Business, including those
related to the Business as conducted as of the Effective Date and as proposed to
be conducted as of the Effective Date, and Company does not use, nor will it be
necessary for Company to use, any inventions of any of Company’s employees or
consultants (or Persons it currently intends to hire) made prior to their
employment by Company.

    
      
         

      

      
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    3.18       Material
Contracts.  Company has
provided to Investor a true, correct and complete copy of each Material
Contract, as well as each other Contract of Company or any of its Subsidiaries
that is otherwise material to Company and its Subsidiaries, taken as a
whole.  Each Material Contract is valid and binding on Company and
each of its Subsidiaries that is a party thereto, as applicable, and in full
force and effect.  Company and each of its Subsidiaries has performed
all obligations required to be performed by it to date under each Material
Contract, except where such noncompliance would not be material to the Company
and its Subsidiaries, taken as a whole.  Neither Company nor any of
its Subsidiaries knows of, or has received written notice of, the existence of
any event or condition which constitutes, or, after notice or lapse of time or
both, will constitute, a default on the part of Company or any of its
Subsidiaries under any such Material Contract.

     

    3.19       Employees; Employee
Benefits.

     

    (a)           Company
has provided or made available to Investor true, complete and correct copies of
each material Company Benefit Plan.  Each Company Benefit Plan has
been maintained and administered at all times in material compliance with its
terms and all applicable Laws.  All contributions required by
applicable Law to have been made by Company or its Subsidiaries as of the
Effective Date with respect to each Company Benefit Plan in respect of current
or prior plan years have been made or such contributions have been accrued in
accordance with GAAP.

     

    (b)           Neither
the execution and delivery by Company of this Agreement or any other Transaction
Document, nor the consummation by Company of the transactions contemplated
hereby and thereby (alone or in combination with any other event)
would:  (i) result in any payment becoming due, or increase the
amount of any compensation or benefits due, to any current or former employee of
Company or its Subsidiaries or with respect to any Company Benefit Plan;
(ii) increase any benefits otherwise payable under any Company Benefit
Plan; (iii) result in the acceleration of the time of payment or vesting of
any such compensation or benefits; (iv) trigger the funding of any
compensation or benefits due to any current or former employee of Company or its
Subsidiaries; (v) result in any “excess parachute payment” within the
meaning of Section 280G of the Code pursuant to any Company Benefit Plan or
other plan or agreement as in effect on the date of this Agreement; or
(vi) trigger the ability of any employee of Company to terminate his or her
employment for “good reason” in connection therewith.

     

    (c)           There
are no complaints, charges or claims against Company or any of its Subsidiaries
pending or, to knowledge of Company, threatened that are reasonably likely to be
brought or filed, with any Governmental Authority based on, arising out of, in
connection with or otherwise relating to the employment or services, termination
of employment of services, or failure to employ or retain any
individual.  Each of Company and its Subsidiaries is in compliance in
all material respects with all applicable Laws relating to the employment of
labor.

     

    (d)           Neither
Company nor any of its Subsidiaries is a party to or bound by any union contract
or collective bargaining agreement, or has experienced any strike, grievance or
any arbitration proceeding, claim of unfair labor practices filed or threatened
to be filed or any other material labor difficulty.

    
      
         

      

      
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    3.20       Title to
Assets and Real Property.  Company and its
Subsidiaries have good and marketable title to all personal property owned by
them that is material to the Business, in each case free and clear of all liens
and encumbrances, except for such liens and encumbrances and as do not
materially affect the value of such property and do not interfere with the use
made and proposed to be made of such property by Company and its
Subsidiaries.  Neither Company nor its Subsidiaries own, nor have they
in the past owned, any real property.  Any real property and
facilities held under lease by Company and its Subsidiaries are held by them
under valid, subsisting and enforceable leases of which Company and its
Subsidiaries are in compliance and do not interfere with the use made and
proposed to be made of such property and buildings by Company and its
Subsidiaries.  Company’s use of such property and buildings is in
compliance with all applicable Laws concerning health and human safety and all
zoning regulations.

     

    3.21       Environmental,
Health & Safety Compliance.  Neither the
conduct nor operation of the Business violates any Law or common law concerning
public health and safety, environmental, worker health and safety, product
safety and electronic waste takeback, and pollution or protection of the
environment (“Environmental, Health, and
Safety Requirements”), except for any such violation of law that has not
had and could not reasonably be expected to have, individually or in the
aggregate, a Material Adverse Effect.  Company has not received any
notice stating that the operation or condition of any real property presently
leased or operated by Company or its Subsidiaries in connection with their
business is in violation of any Environmental, Health, and Safety
Requirements.

     

    3.22       Reserves
for Warranty and Service Obligations.  Adequate reserves
consistent with the claims experience of Company for expenses to be incurred by
Company or its Subsidiaries (a) as a result of any express warranty or
guaranty as to goods sold, leased or licensed or services provided by Company or
any of its Subsidiaries prior to the Closing, or (b) for any service
agreement entered into or future services sold by Company or any of its
Subsidiaries prior to the Closing, are reflected on the Financial
Statements.

     

    3.23       Interested
Party Transactions.  Except for
employment Contracts entered into in the ordinary course of business consistent
with past practice or filed or incorporated by reference as an exhibit to a
Company SEC Document, Company is not party to any agreement or arrangement under
which it has any existing or future liabilities required to be reported by
Company pursuant to Item 404 of Regulation S-K promulgated by the
SEC.

     

    3.24       Solvency.  After giving
effect to the consummation of the transactions contemplated by this Agreement,
Company will be solvent, able to pay its indebtedness as it matures and will
have capital sufficient to carry on its business and any other business in which
it is about to engage.  This Agreement is being executed and delivered
by Company to Investor in good faith and in exchange for fair, equivalent
consideration.  Company does not intend to nor does management believe
Company will incur debts beyond its ability to pay them as they
mature.  Company does not contemplate filing a petition in bankruptcy
or for an arrangement or reorganization under the bankruptcy laws or any similar
law of any jurisdiction now or hereafter in effect relating to Company nor does
Company have any knowledge of any threatened bankruptcy or insolvency
proceedings against Company.

     

    3.25       No Shell
Company.  Company is not,
nor at any time during the 12 months preceding the Effective Date has Company
been, a “shell company,” as such term is defined in paragraph (i)(1)(i) of Rule
144 of the Securities Act or Rule 12b-2 of the Exchange Act, the effect of which
would prevent Investor from selling the Securities without restriction pursuant
to Rule 144.

     

    3.26       No
Disagreements with Accountants and Lawyers.  There are no
disagreements of any kind presently existing, or reasonably anticipated by
Company to arise, between Company and the accountants and lawyers formerly or
presently engaged by Company, and Company is current with respect to any fees
owed to its accountants and lawyers which could affect Company’s ability to
perform any of its obligations under any of the Transaction
Documents.

    
      
         

      

      
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    3.27       Takeover Statutes; No Rights
Agreement; No Appraisal Rights.

     

    (a)           Company
and its board of directors have taken all necessary action, if any, in order to
render inapplicable any control share acquisition, business combination or other
similar anti-takeover provision under Company’s certificate of incorporation or
the laws of Delaware or any other jurisdiction that is, or is reasonably likely
to become, applicable to Company as a result of the transactions contemplated by
this Agreement.

     

    (b)           Company
has not adopted a stockholder rights plan or similar arrangement relating to
accumulations of beneficial ownership of Common Stock upon a change in control
of Company.

     

    (c)           No
stockholder of Company will, as a result of the execution and delivery by
Company of this Agreement or any other Transaction Document, or the consummation
by Company of the transactions contemplated hereby and thereby (alone or in
combination with any other event), become entitled to exercise or assert
dissenters’ rights, appraisal rights or similar rights under the Laws of any
jurisdiction, including, without limitation, the Laws of the State of
Delaware.

     

    3.28       Insurance
Coverage.  Company maintains
policies of fire, liability and other forms of insurance covering the Business
and the real property, leasehold property and assets of Company and its
Subsidiaries, in amounts and against such losses and risks as are, to Company’s
knowledge, generally maintained for comparable businesses.  Company
has provided Investor with copies of certificates of insurance evidencing all
such policies.

     

    3.29       No
Brokers’ Fees.  Neither Company
nor any Subsidiary of Company has any liability or obligation to pay any fees or
commissions to any broker, finder or agent with respect to the transactions
contemplated by this Agreement.

     

    3.30       Accuracy
of Representations and Warranties.  Company has made
available to Investor all of the materials reasonably available to Company that
Investor has requested for deciding whether to acquire the
Shares.  None of these materials, and none of the representations and
warranties of Company made in this Agreement or in any of the other Transaction
Documents, contains any untrue statement of a material fact, and none of the
representations and warranties of Company made in this Agreement or any of the
other Transaction Documents omits a material fact necessary in order to make the
statements of fact made herein or therein not misleading.

     

    ARTICLE
4

     

    REPRESENTATIONS
AND WARRANTIES OF INVESTOR

     

    Except as
set forth in the disclosure letter delivered by Investor to Company prior to the
execution of this Agreement (the “Investor Disclosure Letter”),
Investor hereby represents and warrants to Company as follows:

     

    4.1         Organization.  Investor is duly
organized, validly existing and in good standing under the Laws of the State of
Maryland, and has the necessary corporate power and authority to own its
properties and conduct its business as currently conducted.

     

    4.2         Authority.  Investor has all
requisite power and authority to enter into, and to perform its obligations and
consummate the transactions contemplated under, this Agreement and the other
Transaction Documents.  On or prior to the Effective Date, the
execution and delivery of, and the performance of the transactions contemplated
by, this Agreement and the other Transaction Documents have been duly authorized
by all necessary corporate action on the part of Investor, and no other
corporate action, proceeding or approval is required on the part of Investor to
authorize, or to consummate the transactions contemplated by, this Agreement or
any of the other Transaction Documents.

    
      
         

      

      
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    4.3         Enforceability.  This Agreement
and each other Transaction Document has been validly executed and delivered by
Investor and, assuming the due authorization, execution and delivery by the
other parties hereto and thereto, will constitute a valid and binding obligation
of Investor enforceable in accordance with its terms, subject to the effect, if
any, of (a) applicable bankruptcy and other similar Laws affecting the
rights of creditors generally and (b) rules of Law governing specific
performance, injunctive relief and other equitable remedies.

     

    4.4         Investment
Intent.  Investor is
acquiring the Shares as principal for its own account for investment purposes
only and not with a view to or for distributing or reselling the Shares; provided, however, that nothing
contained herein shall be deemed a representation or warranty by Investor to
hold the Shares for any period of time.  Investor is acquiring the
Shares hereunder in the ordinary course of its business.  Investor
does not have any agreement or understanding, directly or indirectly, with any
Person to sell the Shares.

     

    4.5         Accredited
Investor Status.  Investor is an
“accredited investor” as defined in Rule 501(a) under the Securities
Act.

     

    4.6         Investment
Experience.  Investor has such
knowledge, sophistication and experience in business and financial matters so as
to be capable of evaluating the merits and risks of the prospective investment
in the Shares, and has so evaluated the merits and risks of such
investment.

     

    4.7         Ability
to Bear Risk of Investment.  Investor is able
to bear the economic risk of an investment in the Shares and, at the present
time, is able to afford a complete loss of such investment.

     

    4.8         Access to
Information.  Investor
acknowledges that it has been afforded:  (a) the opportunity to
ask such questions as it has deemed necessary of, and to receive answers from,
representatives of Company concerning the terms and conditions of the offer and
sale of the Shares and the merits and risks of investing in the Shares;
(b) access to information about Company and its financial condition,
results of operations, business, properties, management and prospects sufficient
to enable it to evaluate its investment; and (c) the opportunity to obtain such
additional information which Company possesses or can acquire without
unreasonable effort or expense that is necessary to make an informed investment
decision with respect to the investment.  Neither such inquiries nor
any other investigation conducted by or on behalf of Investor or its
representatives or counsel shall modify, amend or affect Investor’s right to
rely on the truth, accuracy and completeness of Company’s representations and
warranties contained in the Transaction Documents.

     

    4.9         No
General Solicitation.  Investor is not
purchasing the Shares as a result of or subsequent to any advertisement,
article, notice or other communication regarding the Shares published in any
newspaper, magazine or similar media or broadcast over television or radio or
presented at any seminar or any other general solicitation or general
advertisement.

     

    4.10       Reliance.  Investor
understands and acknowledges that (a) the Shares are being offered and sold
to it without registration under the Securities Act in a private placement that
is exempt from the registration provisions of the Securities Act and
(b) the availability of such exemption depends in part on, and Company will
rely upon the accuracy and truthfulness of, the foregoing representations and
Investor hereby consents to such reliance.

    
      
         

      

      
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    4.11       No
Brokers’ Fees.  Investor has no
liability or obligation to pay any fees or commissions to any broker, finder or
agent with respect to the transactions contemplated by this
Agreement.

     

    4.12       No Other
Representations or Warranties.  Company
acknowledges and agrees that Investor makes no representations or warranties
with respect to the transactions contemplated hereby other than those
specifically set forth in this Article 4.

     

    ARTICLE
5

     

    OTHER
AGREEMENTS OF THE PARTIES

     

    5.1         Transfer
Restrictions.  The Shares may
only be disposed of pursuant to an effective registration statement under the
Securities Act, to an Affiliate, to Company or pursuant to an available
exemption from or in a transaction not subject to the registration requirements
of the Securities Act, and in compliance with any applicable federal and state
securities Laws.  Until such time as the Shares can be freely
transferred in a public sale without registration under the Securities Act, in
connection with any transfer of any such securities, other than pursuant to an
effective registration statement, to an Affiliate or to Company, an opinion of
counsel will be required to the effect that such transfer does not require
registration of such transferred securities under the Securities
Act.  Any such transferee shall agree in writing to be bound by the
terms of this Agreement and shall have the rights of Investor under this
Agreement and the other Transaction Documents.

     

    5.2         Reservation
of Shares.  Company shall at
all times maintain a reserve of shares of Common Stock sufficient to permit the
exercise, in full, of the Option.  If on any date Company would be, if
a notice of exercise were to be delivered on such date in connection with the
Option, precluded from issuing the number of Option Shares, as applicable, as
would then be issuable upon the exercise in full of the Option (the “Current Required Minimum”),
due to the unavailability of a sufficient number of authorized but unissued or
reserved shares of Common Stock, then the board of directors of Company shall
promptly prepare and mail to the stockholders of Company proxy materials
requesting authorization to amend Company’s certificate of incorporation to
increase the number of shares of Common Stock which Company is authorized to
issue to at least such number of shares as reasonably requested by Investor in
order to provide for such number of authorized and unissued shares of Common
Stock to enable Company to comply with its issuance and reservation of shares
obligations as set forth in this Agreement and the Investor Rights Agreement (it
being understood that the sum of (a) the number of shares of Common Stock
then outstanding plus all shares of Common Stock issuable upon exercise of all
outstanding options, warrants and convertible instruments, and (b) the
Current Required Minimum, shall be a reasonable number for these
purposes).  In connection therewith, the board of directors of Company
shall (x) adopt proper resolutions authorizing such increase,
(y) recommend to and otherwise use its best efforts to promptly and duly
obtain stockholder approval to carry out such resolutions (and hold a special
meeting of the stockholders no later than the earlier to occur of the 60th day
after delivery of the proxy materials relating to such meeting and the 90th day
after request by Investor to issue the number of Option Shares, as applicable,
in accordance with the terms hereof) and (z) within five Business Days of
obtaining such stockholder authorization, file an appropriate amendment to
Company’s certificate of incorporation to evidence such increase.

     

    5.3         Exercise
Procedures.  The form of
Notice of Exercise included in the Investor Rights Agreement sets forth the
totality of the procedures required of Investor in order to exercise the Option
(assuming, as applicable, that the conditions for exercise of the Option, as set
forth in the Investor Rights Agreement, have been satisfied).  No
additional legal opinion, other information or instructions shall be required of
Investor to exercise the Option.  Company shall honor the exercise of
the Option, and shall deliver the Option Shares, in accordance with the terms,
conditions and time periods set forth in the Transaction
Documents.

    
      
         

      

      
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    5.4         Certain Securities Law
Disclosures; Publicity.

     

    (a)           Company
shall file with the SEC a Current Report on Form 8-K disclosing the transactions
contemplated hereby within four Business Days after the Closing Date, and timely
file with the SEC a Form D promulgated under the Securities
Act.  Company shall, no less than two Business Days prior to the
filing of any such disclosure, provide a copy thereof to Investor for its review
and comment.

     

    (b)           Company
and Investor shall consult with each other in issuing any press releases or
otherwise making public statements with respect to the transactions contemplated
hereby and neither party shall issue any such press release or otherwise make
any such public statement without the prior written consent of the other, except
if such disclosure is required by Law or stock market or trading facility
regulation, in which such case the disclosing party shall promptly provide the
other party with prior notice of such public statement and an opportunity to
review and comment thereon.

     

    5.5         Use of
Proceeds.  Company may use
the net proceeds from the sale of the Shares hereunder to support the Company’s
operations and the marketing and promotion of its products, for product tooling
and engineering, research and development and strategic investments and
transactions, and to otherwise fund working capital for the Company’s
operations, and shall not be used for any other purposes.

     

    5.6         No
Integration.  Company shall
not, and shall use its best efforts to ensure that, no Affiliate of Company
shall, sell, offer for sale or solicit offers to buy or otherwise negotiate in
respect of any security (as defined in Section 2 of the Securities Act) that
would be integrated with the offer or sale of the Shares in a manner that would
require the registration under the Securities Act of the sale of the Shares to
Investor.

     

    5.7         Shareholder
Rights Plan.  No claim will be
made or enforced by Company or any other Person that Investor is an “acquiring
person” under any shareholders rights plan or similar plan or arrangement
hereafter adopted by Company, or that Investor could be deemed to trigger the
provisions of any such plan or arrangement, by virtue of receiving any of the
Securities under the Transaction Documents.

     

    5.8         Board
Membership.  As of the
Closing, Company shall increase the size of its board of directors to enable it
to appoint one additional member of such board of directors in accordance with
the terms of the Voting Agreement.

     

    5.9         Amendment
to Strategic Supplier Master Procurement Agreement.  Company and
Investor shall negotiate in good faith to cause their existing Strategic
Supplier Master Procurement Agreement to be amended, which amendment shall be in
form reasonably satisfactory to each of Company and Investor (the “Amendment”).

     

    5.10       Affiliate
and Related Party Transactions.  Until such date
as Investor no longer holds at least 5% of the Shares acquired by Investor on
the date hereof, except for (a) employment Contracts, (b) grants or
issuances of shares of Common Stock or options, warrants or rights therefor to
employees, officers or directors pursuant to incentive agreements, stock
purchase or stock option plans, stock bonuses or stock awards that are approved
by the Company board of directors, and (c) Contracts with Shenzhen Syscan
Technology (or its successor) for the development, production, manufacture and
shipment of products, in each case entered into in the ordinary course of
business consistent with past practice, Company shall not, without the prior
written consent of Investor, enter into any agreement or arrangement with any
Affiliate of Company, any director or executive officer of Company, or that
would otherwise be required to be reported by Company pursuant to Item 404 of
Regulation S-K promulgated by the SEC.

    
      
         

      

      
        -17-

        
          

        

      

      
         

      

    

     

    5.11       Expenses.  Except as
otherwise set forth in this Agreement or the other Transaction Documents, the
parties hereto shall pay all of their own expenses relating to the transactions
contemplated by this Agreement, including, the fees and expenses of their own
agents, representatives, financial consultants, accountants and
counsel.

     

    5.12       Further
Assurances.  Company and
Investor agree to cooperate reasonably with each other and with their respective
authorized representatives in connection with any steps required to be taken as
part of their respective obligations under this Agreement and the other
Transaction Documents, and shall:  (a) furnish upon request to
each other such further information; (b) execute and deliver to each other
such other documents; and (c) do such other acts and things, all as the
other party may reasonably request for the purpose of carrying out the intent of
this Agreement and the other Transaction Documents, and the transactions
contemplated hereby and thereby.

     

    5.13       Additional
Debt; Share Issuances.  Company hereby
agrees that, during the twelve month period beginning on the Effective Date, it
shall not, as long as Investor holds at least 5% of the Shares acquired by
Investor on the Effective Date:

     

    (a)           amend,
modify or otherwise change any of the terms, covenants or other provisions of
that certain Loan and Security Agreement, dated as of September 2, 2009, by and
between Bridge Bank and Company, as amended as of March 10, 2010 (as further
amended and restated the “Loan Agreement”) in
such a manner as would cause such terms, covenants or other provisions to be
materially different from those set forth in the Loan Agreement as of the
Effective Date;

     

    (b)           increase,
or cause to be increased, the total principal amount available to Company under
the Loan Agreement (as such may be renewed, extended, refinanced, amended,
restated, supplemented or modified) to an amount greater than $2,000,000;
or

     

    (c)           issue,
grant or sell any shares of capital stock, or any warrants, options or other
rights to purchase or acquire shares of capital stock, or any securities
convertible into shares of capital stock, other than:  (i) shares
of Common Stock (or options, warrants or rights therefor) granted or issued
hereafter to employees, officers, directors, contractors, consultants or
advisers to, Company or any subsidiary pursuant to incentive agreements, stock
purchase or stock option plans, stock bonuses or awards, warrants, contracts or
other arrangements that are approved by the Company board of directors;
(ii) shares of Common Stock (or options, warrants or rights therefor)
issued or issuable to parties that are providing Company with equipment leases,
real property leases, loans, credit lines or similar transactions, under
arrangements, in each case, approved by the Company board of directors;
(iii) shares of capital stock issued pursuant to the acquisition of another
corporation or entity by Company pursuant to a consolidation, merger, purchase
of all or substantially all of the assets, or other reorganization in which
Company acquires, in a single transaction or series of related transactions, all
or substantially all of the assets of such other corporation or entity or more
than 50% of the voting power of such other corporation or entity or more than
50% of the equity ownership of such other entity; provided that such transaction
or series of transactions has been approved by the Company board of directors;
and provided, further, that such other corporation or entity is not an Affiliate
of Company or “controlled” (as such term is used in the definition of
“Affiliate” herein) directly or indirectly by one or more officers, directors or
employees of Company; (iv) shares of Common Stock issuable upon exercise of
any options, warrants or rights to purchase any securities of Company
outstanding as of the date hereof; or (v) shares of capital stock (or
options, warrants or rights therefor) issued by reason of a stock split or
subdivision or capital reorganization.

    
      
         

      

      
        -18-

        
          

        

      

      
         

      

    

     

    ARTICLE
6

     

    CONDITIONS
TO CLOSING

     

    6.1         Conditions
of Investor’s Obligations.  The obligations
of Investor hereunder, including the obligation to effect payment of the
Purchase Price for the Shares, are subject to the satisfaction or waiver in
writing (where permissible) of the following conditions:

     

    (a)           The
representations and warranties of Company set forth in this Agreement shall be
true and correct as of the Effective Date of this Agreement and Company shall
have performed all obligations required to be performed by it under this
Agreement prior to the Closing.

     

    (b)           Investor
shall have received an executed certificate of the Secretary of Company as to
(i) the approval of the execution and delivery of this Agreement, the other
Transaction Documents and the consummation of the transactions contemplated
hereby and thereby, (ii) the corporate status of Company, and
(iii) the incumbency and true signatures of the officers of Company who
executed this Agreement or will execute any other Transaction Document
contemplated hereby on behalf of Company.

     

    (c)           Investor
shall have received (i) a copy, certified by the Secretary of State of the
State of Delaware on the Effective Date, of the Certificate of Incorporation of
Company and all amendments thereto, and (ii) a certificate, dated the
Effective Date, of the Secretary of State of the State of Delaware regarding
Company’s corporate status.

     

    (d)           All
registrations, filings, applications, notices, transfers, consents, approvals,
orders, qualifications and waivers necessary in order for Company to consummate
the transactions contemplated by this Agreement and the other Transaction
Documents, including the consent and approval of Bridge Bank, National
Association, shall have been made or obtained by Company, in form and substance
reasonably satisfactory to Investor and its counsel, and delivered to
Investor.

     

    (e)           Investor
shall have received the Investor Rights Agreement, duly executed by Company, in
the form attached hereto as Exhibit A.

     

    (f)           Investor
shall have received the Voting Agreement, duly executed by Company and the
stockholders of Company whose names are set forth on the signature pages
thereto, in the form attached hereto as Exhibit B.

     

    (g)           Investor
shall have received the Amendment, duly executed by Company.

     

    (h)           Investor
shall have received an opinion of Richardson & Patel, LLP, counsel for
Company, addressed to Investor, and dated the Effective Date, in form and
substance satisfactory to Investor.

     

    (i)           Investor
shall have received written waivers, in a form reasonably satisfactory to
Investor, from each officer, director or other employee of Company who is party
to an agreement or other arrangement under which the transactions contemplated
hereby would be deemed to constitute a “change-in-control” or would otherwise
result in the acceleration or vesting of any option, warrant or other right, or
the obligation of Company to make any change-in-control or related
payment.

    
      
         

      

      
        -19-

        
          

        

      

      
         

      

    

     

    (j)           Company
shall have obtained all necessary permits and qualifications, if any, or secured
an exemption therefrom, required by any state or country prior to the offer and
sale of the Shares.

     

    (k)           On
the Effective Date, the sale and issuance of the Shares, the Option and the
Option Shares issuable upon exercise of the Option, shall be legally permitted
by all laws and regulations to which Investor and Company are
subject.

     

    (l)           Investor
shall have received all other documents, instruments and certificates in
connection with the transactions contemplated by this Agreement and the other
Transaction Documents as Investor may reasonably request in form and substance
reasonably satisfactory to Investor and its counsel.

     

    6.2         Conditions
of Company’s Obligations.  The obligations
of Company hereunder, including the obligation to execute and deliver the
Shares, are subject to the satisfaction or waiver in writing (where permissible)
of the following conditions:

     

    (a)           The
representations and warranties of Investor set forth in this Agreement shall be
true and correct as of the Effective Date of this Agreement and Investor shall
have performed all obligations required to be performed by it under this
Agreement prior to the Closing.

     

    (b)           Company
shall have received the Investor Rights Agreement, duly executed by Investor, in
the form attached hereto as Exhibit A.

     

    (c)           Company
shall have received the Voting Agreement, duly executed by Investor, in the form
attached hereto as Exhibit B.

     

    (d)           Company
shall have received the Amendment, duly executed by Investor.

     

    ARTICLE
7

     

    INDEMNIFICATION

     

    7.1         Indemnification.  Investor
(including its officers, directors, employees, affiliates, agents, successors
and assigns (each, an “Indemnified Party”))
shall be indemnified, defended and held harmless by Company and its Subsidiaries
for any and all liabilities, losses, damages, claims, costs and expenses,
interest, awards, judgments and penalties (including, without limitation,
reasonable attorneys’ fees and expenses) suffered or incurred by them
(hereinafter a “Loss”), arising out
of or resulting from the breach of any representation, warranty, agreement or
covenant made by Company contained in this Agreement or any of the other
Transaction Documents.

    
      
         

      

      
        -20-

        
          

        

      

      
         

      

    

    7.2         Indemnification
Procedure.  The obligations
and liabilities of Company under this Article 7 with
respect to Losses arising from claims of any third party which are subject to
the indemnification provided for in this Article 7
(“Third Party Claims”)
shall be governed by and contingent upon the following additional terms and
conditions:  if an Indemnified Party shall receive notice of any Third
Party Claim, the Indemnified Party shall give Company notice of such Third Party
Claim promptly after the receipt by the Indemnified Party of such notice (which
notice shall include the amount of the Loss, if known, and method of computation
thereof, and containing a reference to the provisions of this Agreement in
respect of which such right of indemnification is claimed or arises); provided, however, that the
failure to provide such notice shall not release Company from any of its
obligations under this Article 7 except
to the extent Company is materially prejudiced by such failure and shall not
relieve Company from any other obligation or liability that it may have to any
Indemnified Party otherwise than under this Article 7.  Upon
written notice to the Indemnified Party within five days of the receipt of such
notice, Company shall be entitled to assume and control the defense of such
Third Party Claim at its expense and through counsel of its choice; provided, however, that, if
there exists or is reasonably likely to exist a conflict of interest that would
make it inappropriate in the reasonable judgment of such counsel for the same
counsel to represent both the Indemnified Party and Company, then the
Indemnified Party shall be entitled to retain its or his own counsel in each
jurisdiction for which the Indemnified Party reasonably determines counsel is
required, at the reasonable expense of Company.  In the event Company
exercises the right to undertake any such defense against any such Third Party
Claim as provided above, the Indemnified Party shall cooperate with Company in
such defense and make available to Company, at Company’s expense, all witnesses,
pertinent records, materials and information in the Indemnified Party’s
possession or under the Indemnified Party’s control relating thereto as is
reasonably required by Company.  Similarly, in the event the
Indemnified Party is, directly or indirectly, conducting the defense against any
such Third Party Claim, Company shall cooperate with the Indemnified Party in
such defense and make available to the Indemnified Party, at Company’s expense,
all such witnesses, records, materials and information in Company’s possession
or under Company’s control relating thereto as is reasonably required by the
Indemnified Party.  No such Third Party Claim may be settled by
Company on behalf of the Indemnified Party without the prior written consent of
the Indemnified Party (which consent shall not be unreasonably withheld); provided, however, in the event
that the Indemnified Party does not consent to any such settlement that would
provide it with a full release from indemnified Losses and would not require it
to take, or refrain from taking, any action, Company’s liability for
indemnification shall not exceed the amount of such proposed
settlement.  The Indemnified Party will refrain from any act or
omission that is inconsistent with the position taken by Company in the defense
of a Third Party Claim unless the Indemnified Party determines that such act or
omission is reasonably necessary to protect its own interest.

     

    ARTICLE
8

     

    DISPUTE
RESOLUTION

     

    8.1         Arbitration.  In the event of a
dispute arising out of or relating to this Agreement, the relationships created
by it, or the transactions occurring under it, the parties shall attempt in good
faith to resolve such disputes promptly by negotiation.  A party may
give the other party or party written notice that a dispute exists (a “Notice of Dispute”).  The
Notice of Dispute shall include a brief statement of such party’s
position.  Within 20 calendar days of the delivery of the Notice of
Dispute, the parties shall meet at a mutually acceptable time and place, and
thereafter if they so elect, to attempt to resolve the dispute.  Key
documents and other information or data on which a party relies concerning the
dispute shall be furnished or made available on reasonable terms to the other
party at or before the first meeting of the parties as provided by this Section 8.1.  If
the dispute has not been resolved by negotiation within 45 calendar days of the
delivery of a Notice of Dispute, or if the parties to the dispute have failed to
meet within 20 calendar days of the Notice of Dispute, then such dispute shall
be resolved by arbitration in accordance with the following
provisions.

     

    8.2         Forum and
Jurisdiction.  The forum for the arbitration shall be the
Borough of Manhattan in New York, or if the parties to the dispute so agree any
other location in the federal Southern District of New York.  Claims
relating to Intellectual Property and claims for injunctive relief shall be
brought in the state or federal courts sitting in New York, New York (i.e., Supreme Court, New York
County, and the United States District Court for the Southern District of New
York (the “Courts”).  The
parties submit to the jurisdiction of the Courts with respect to special claims
and waive all claims of forum non conveniens or similar doctrines.

     

    8.3         Governing
Law.  The governing law
for the arbitration and matters before the Courts shall be, with respect to
matters of arbitrability, the federal Law of the United States of America and
with respect to matters of substantive law, the Laws of the State of New York,
without reference to its conflicts of laws provisions.

     

    
      
         

      

      
        -21-

        
          

        

      

      
         

      

    

     

    8.4         Administration.  The arbitration
shall be administered by the American Arbitration Association (“AAA”), pursuant to
its then-current Commercial Arbitration Rules (the “AAA Rules”), as
modified by any other provisions that the parties may jointly agree upon in
writing.  There shall be a single arbitrator, mutually selected by the
parties to the dispute, and if such parties are unable to agree upon an
arbitrator, the AAA shall designate an arbitrator (the “Arbitrator”).  The
Arbitrator shall be a licensed attorney with at least 15 years of experience in
corporate law matters.  If a party brings a claim in a court that is
required by this Article 8 to be
brought in arbitration, and the other party successfully moves for an order or
petition compelling arbitration, the non-prevailing party shall be obligated to
pay the prevailing party’s costs and attorney fees in connection with securing
such order or petition.

     

    8.5         Decision.  The decision of
the Arbitrator on the merits, whether wholly or partially dispositive, shall be
in writing, and shall describe in reasonable detail the legal basis for the
decision and shall specify any findings of fact necessary
thereto.  The Arbitrator shall hear and determine, in advance of the
hearing on the merits, any dispositive or partially dispositive motions for
summary adjudication or for dismissal, and shall determine a date by which such
motions must be filed.  The Arbitrator’s decision shall be final and
binding on the parties and may be entered in any court of competent
jurisdiction.

     

    8.6         Discovery.  For the
Arbitration, discovery by each party shall be limited to reasonable requests for
production of documents up to four depositions; provided, that
parties shall not be aggregated to increase the number of depositions if the
parties’ interests are substantially similar.  No additional discovery
(e.g., interrogatories or requests for admissions) shall be permitted except by
mutual written consent or as ordered by the Arbitrator upon good cause
shown.

     

    8.7         Expenses.  Except as may be
expressly set forth herein, each party shall bear its own costs and attorney
fees occurred in connection with any dispute.  In the event of
arbitration, the fees and expenses of the Arbitrator shall be borne as
determined by the Arbitrator, and in the absence of a determination shall be
shared equally between the parties.

     

    8.8         Remedies;
Award.  The Arbitrator
shall be without authority to award treble, multiple, exemplary, consequential
or punitive damages of any type, or other damages excluded in or in excess of
limitations expressed in this Agreement, under any circumstances.

     

    8.9         Waiver of
Jury Trial.  THE PARTIES
HEREBY WAIVE ANY RIGHT TO TRIAL BY JURY IN ANY PROCEEDING ARISING OUT OF OR
RELATING TO THIS AGREEMENT OR ANY OTHER TRANSACTION DOCUMENT, ANY OF THE
CONTEMPLATED TRANSACTIONS OR RELATIONSHIPS CREATED UNDER OR BY THIS AGREEMENT OR
ANY OF THE OTHER TRANSACTION DOCUMENTS, WHETHER NOW EXISTING OR HEREAFTER
ARISING, AND WHETHER SOUNDING IN CONTRACT, TORT OR OTHERWISE.  THE
PARTIES AGREE THAT ANY OF THEM MAY FILE A COPY OF THIS SECTION OF THIS AGREEMENT
WITH ANY COURT OR OTHER TRIBUNAL AS WRITTEN EVIDENCE OF THE KNOWING, VOLUNTARY
AND BARGAINED-FOR AGREEMENT AMONG THE PARTIES IRREVOCABLY TO WAIVE TRIAL BY JURY
AND THAT ANY PROCEEDING WHATSOEVER BETWEEN THEM RELATING TO THIS AGREEMENT OR
ANY OF THE CONTEMPLATED TRANSACTIONS OR RELATIONSHIPS SHALL INSTEAD BE RESOLVED
BY ARBITRATION.

     

    ARTICLE
9

     

    MISCELLANEOUS

     

    9.1         Entire
Agreement.  The Transaction
Documents, together with the Exhibits and Schedules thereto contain the entire
understanding of the parties with respect to the subject matter hereof and
supersede all prior agreements and understandings, oral or written, with respect
to such matters, which the parties acknowledge have been merged into such
documents, exhibits and schedules.

     

    
      
        
        

      

      
        -22-

        
          

        

      

      
        
        

      

    

     

    9.2         Notices.  Any and all
notices or other communications or deliveries required or permitted to be
provided hereunder shall be in writing and shall be deemed given and effective
on the earliest of (a) the date of transmission, if such notice or
communication is delivered via facsimile at the facsimile telephone number
specified in this Section at or prior to 5:00 p.m. (Eastern Time) on a Business
Day, (b) the Business Day after the date of transmission, if such notice or
communication is delivered via facsimile at the facsimile telephone number
specified in this Agreement later than 5:00 p.m. (Eastern Time) on any date and
earlier than 11:59 p.m. (Eastern Time) on such date, (c) the Business Day
following the date of mailing, if sent by nationally recognized overnight
courier service, or (d) upon actual receipt by the party to whom such
notice is required to be given.  The address for such notices and
communications shall be as follows:

     

    
      	
               
      

            	
              If to Investor,
      to:

            	
              NCR
      Corporation

            

    

    3097
Satellite Boulevard

    Duluth,
GA 30096

    Attn:  General
Counsel

    Fax:  (404)
487-8949

     

    
      	
               
      

            	
              If to Company,
      to:

            	
              Document
      Capture Technologies, Inc.

            

    

    1798
Technology Drive

    Suite
178

    San Jose,
California 95110

    Attn:  Chief
Executive Officer

    Fax:  (408)
436-9888

     

    or such
other address as may be designated in writing hereafter, in the same manner, by
such Person.

     

    9.3         Amendments;
Waivers.  No provision of
this Agreement may be waived or amended except in a written instrument signed,
in the case of an amendment, by Company and Investor or, in the case of a
waiver, by the party against whom enforcement of any such waiver is
sought.  No waiver of any default with respect to any provision,
condition or requirement of this Agreement shall be deemed to be a continuing
waiver in the future or a waiver of any other provision, condition or
requirement hereof, nor shall any delay or omission of either party to exercise
any right hereunder in any manner impair the exercise of any such right accruing
to it thereafter.

     

    9.4         Headings.  The headings
herein are for convenience only, do not constitute a part of this Agreement and
shall not be deemed to limit or affect any of the provisions
hereof.

     

    9.5         Successors
and Assigns.  This Agreement
shall be binding upon and inure to the benefit of the parties and their
successors and permitted assigns.  Company may not assign this
Agreement or any rights or obligations hereunder without the prior written
consent of Investor.  Except in connection with a transfer of any of
the Shares in accordance with the terms of the Transaction Documents, Investor
may not assign this Agreement or any of the rights or obligations hereunder
without the consent of Company.

     

    9.6         No
Third-Party Beneficiaries.  This Agreement is
intended for the benefit of the parties hereto and their respective successors
and permitted assigns and is not for the benefit of, nor may any provision
hereof be enforced by, any other Person.

     

    9.7         Governing
Law.  This Agreement
shall be governed in all respects including its validity, construction,
interpretation, breach, performance and termination by the Laws of the State of
New York and any applicable federal Laws of the United States of America,
without regard to conflict of laws provisions.

    

      
        
           

        

        
          -23-

          
            

          

        

        
           

        

      

    

     

    9.8         Survival.  The
representations, warranties, agreements and covenants of the Company contained
herein shall survive the Closing and any investigation heretofore or hereafter
conducted by or on behalf of Investor, and shall not expire.

     

    9.9         Execution.  This Agreement
may be executed in two or more counterparts, all of which when taken together
shall be considered one and the same agreement and shall become effective when
counterparts have been signed by each party and delivered to the other party, it
being understood that both parties need not sign the same
counterpart.  In the event that any signature is delivered by
facsimile transmission, such signature shall create a valid and binding
obligation of the party executing (or on whose behalf such signature is
executed) the same with the same force and effect as if such facsimile signature
page were an original thereof.

     

    9.10       Severability.  Any provision of
this Agreement which is prohibited or unenforceable in any jurisdiction shall,
as to such jurisdiction, be ineffective to the extent of such prohibition or
unenforceability without invalidating the remaining provisions of this
Agreement, and any such prohibition or unenforceability in any jurisdiction will
not invalidate or render unenforceable such provision in any other
jurisdiction.  To the extent permitted by Law, each party hereby
waives any provision of Law that renders any such provision prohibited or
unenforceable in any respect.

     

    9.11       Specific
Performance.  In addition to
being entitled to exercise all rights provided herein or granted by law,
including recovery of damages, Investor and Company will be entitled to specific
performance of each other’s obligations under the Transaction
Documents.  The parties agree that monetary damages may not be
adequate compensation for any loss incurred by reason of any breach of
obligations described in the foregoing sentence and hereby agree to waive in any
action for specific performance of any such obligation the defense that a remedy
at law would be adequate.

     

    9.12       Remedies
Cumulative.  No right, remedy,
or election given by any term of this Agreement shall be deemed exclusive, but
each shall be cumulative with all other rights, remedies, and elections
available at law or in equity.

     

    9.13       No
Impairment.  Company will not,
by amendment of its certificate of incorporation or bylaws, or through
reorganization, consolidation, merger, dissolution, issue or sale of securities,
sale of assets or any other voluntary action, willfully avoid or seek to avoid
the observance or performance of any of the terms of this Agreement or any other
Transaction Document, but will at all times in good faith assist in the carrying
out of all such terms and in the taking of all such action as may be necessary
or appropriate in order to protect the rights of Investor under this Agreement
and the other Transaction Documents against wrongful
impairment.  Without limiting the generality of the foregoing, Company
will take all such action as may be necessary or appropriate in order that
Company may duly and validly issue fully paid and nonassessable Option Shares
upon the exercise of the Option.
 

    9.14       Disclosure
Letters.  No exceptions to
any representations or warranties disclosed in one Section of the Company
Disclosure Letter or Investor Disclosure Letter, as applicable, shall constitute
an exception to any other representations or warranties made in this Agreement
unless:  (a) the exception is disclosed in each such other
applicable Section of the Disclosure Letter; (b) the exception is cross
referenced in each such other applicable Section of the Disclosure Letter; or
(c) the description of the fact or item disclosed in the first Section of
the Disclosure Letter makes the nature and relationship of the fact or item to
the other Section of the Disclosure Letter reasonably
apparent.  Except as provided in the first sentence of this Section 9.14,
nothing in any Section of the Company Disclosure Letter or the Investor
Disclosure Letter, as applicable, shall be adequate to disclose an exception to
a representation or warranty made in this Agreement unless such Section of such
Disclosure Letter identifies the exception with particularity and describes the
relevant facts in reasonable detail.  Without limiting the generality
of the foregoing, the mere listing (or inclusion of a copy) of a document or
other item shall not be adequate to disclose an exception to a representation or
warranty made in this Agreement, unless the representation or warranty has to do
with the existence of the document or other item itself.  Any fact or
item disclosed in any Section of the Company Disclosure Letter or Investor
Disclosure Letter, or in any Exhibit to this Agreement, shall not by reason only
of such disclosure be deemed material and shall not be employed as a point of
reference in determining any standard of materiality under this
Agreement.

    
      
         

      

      
        -24-

        
          

        

      

      
         

      

    

    IN WITNESS WHEREOF, the
parties have executed and caused this Agreement to be executed and delivered on
the date first above written.

    

      
        
          
            
              
                
                  
                    
                      
                        
                          
                            	 
      	
                                    NCR
      Corporation

                                  
	 
      	 
      	 
      
	 
      	
                                    By:

                                  	 
      
	 
      	 
      	
                                    Name:

                                  	 
      
	 
      	 
      	
                                    Title:

                                  	 
      
	 	 
	 
      	
                                    Document
      Capture Technologies, Inc.

                                  
	 
      	 
      	 
      
	 
      	
                                    By:

                                  	 
      
	 
      	 
      	
                                    Name:

                                  	 
      
	 
      	 
      	
                                    Title:

                                  	 
      

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

     

    
      [Signature
Page to Share Purchase Agreement]INVESTOR
RIGHTS AGREEMENT

       

      THIS INVESTOR RIGHTS AGREEMENT
(this “IR Agreement”)
is made and entered into as of the _____ day of August, 2010, by and between NCR
CORPORATION, a Maryland corporation (“Investor”), and
DOCUMENT CAPTURE TECHNOLOGIES, INC., a Delaware corporation (“Company”).

       

      WITNESSETH:

       

      WHEREAS, Company and Investor
are parties to that certain Share Purchase Agreement, of even date herewith (the
“Purchase Agreement”),
which provides for, among other things, the issuance and sale by Company to
Investor of 3,861,004 shares of Company’s common stock, par value $0.001 per
share (the “Shares”) for an
aggregate purchase price of $4,000,000; and

       

      WHEREAS, in order to induce
Company to enter into the Purchase Agreement and to induce Investor to invest
funds in Company pursuant to the Purchase Agreement, Company has agreed to
provide Investor with, among other things, certain rights to register the Shares
and other shares of common stock of Company issuable to Investor, to receive
certain information from Company, and to acquire up to an additional $4,000,000
of common stock of Company under certain circumstances;

       

      NOW, THEREFORE, for and in
consideration of the mutual covenants, agreements and warranties herein
contained, the parties hereby agree as follows:

       

      ARTICLE
1

       

      CERTAIN
DEFINITIONS

       

      For
purposes of this IR Agreement, the following terms shall have the meanings
specified below:

       

      “Additional Shares of Common
Stock” means all shares of Common Stock issued by Company, or deemed
issued as provided in Section 4.5(f)
and Section 4.7(b),
whether or not subsequently reacquired or retired by Company, other
than:  (a) any shares of Common Stock (or options, warrants or
rights therefor) granted or issued hereafter to employees, officers, directors,
contractors, consultants or advisers to, Company or any subsidiary pursuant to
incentive agreements, stock purchase or stock option plans, stock bonuses or
awards, warrants, contracts or other arrangements that are approved by the
Company board of directors; (b) any shares of Common Stock (or options,
warrants or rights therefor) issued or issuable to parties that are providing
Company with equipment leases, real property leases, loans, credit lines or
similar transactions, under arrangements, in each case, approved by the Company
board of directors; (c) shares of Common Stock issued pursuant to the
acquisition of another corporation or entity by Company pursuant to a
consolidation, merger, purchase of all or substantially all of the assets, or
other reorganization in which Company acquires, in a single transaction or
series of related transactions, all or substantially all of the assets of such
other corporation or entity or more than 50% of the voting power of such other
corporation or entity or more than 50% of the equity ownership of such other
entity; provided that such
transaction or series of transactions has been approved by the Company board of
directors; and provided, further, that such
other corporation or entity is not an Affiliate of Company or “controlled” (as
such term is used in the definition of “Affiliate” herein) directly or
indirectly by one or more officers, directors or employees of Company;
(d) shares of Common Stock issuable upon exercise of any options, warrants
or rights to purchase any securities of Company outstanding as of the date
hereof; or (e) shares of Common Stock (or options, warrants or rights
therefor) issued by reason of a dividend, stock split, split-up or other
distribution on shares of Common Stock that is covered by subsections (a)
through (d) of Section 4.5.

      
        
           

        

        
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      “Affiliate” means, as
to any Person, (a) any subsidiary of such Person, and (b) any other
Person which, directly or indirectly, controls, is controlled by, or is under
common control with, such Person and includes, in the case of a Person other
than an individual, each officer, director, general partner or member of such
Person, and each Person who is the beneficial owner of 5% or more of such
Person’s outstanding stock having ordinary voting power of such
Person.  For the purposes of this definition, “control” means the
possession of the power to direct or cause the direction of management and
policies of such Person, whether through the ownership of voting securities, by
contract or otherwise.

       

      “Aggregate Consideration
Received” by Company for any issue or sale (or deemed issue or sale) of
securities shall:  (a) to the extent it consists of cash, be
computed at the gross amount of cash received by Company before deduction of any
underwriting or similar commissions, compensation or concessions paid or allowed
by Company in connection with such issue or sale and without deduction of any
expenses payable by Company; (b) to the extent it consists of property
other than cash, be computed at the fair value of that property as determined in
good faith by the Company board of directors; and (c) if Additional Shares
of Common Stock, Convertible Securities (as defined herein) or Rights or Options
(as defined herein) to purchase either Additional Shares of Common Stock or
Convertible Securities are issued or sold together with other stock or
securities or other assets of Company for a consideration which covers both, be
computed as the portion of the consideration so received that may be reasonably
determined in good faith by the Company board of directors to be allocable to
such Additional Shares of Common Stock, Convertible Securities or Rights or
Options.

       

      “Business Day” means
any day other than a weekend day or any other day on which commercial banks in
the State of New York are authorized or required to close.

       

      “Change in Control”
means:  (a) the acquisition (other than from Company) by any
Person of beneficial ownership of 50% or more of the combined voting power of
Company’s then-outstanding securities; (b) a merger or consolidation
involving Company if the stockholders of Company, immediately before such merger
or consolidation do not, as a result of such merger or consolidation, own,
directly or indirectly, more than 50% of the combined voting power of the
then-outstanding voting securities of the corporation resulting from such merger
or consolidation in substantially the same proportion as their ownership of the
combined voting power of the voting securities of Company outstanding
immediately before such merger or consolidation; or (c) a complete
liquidation or dissolution of Company or the sale or other disposition of all or
substantially all of the assets of Company.

       

      “Common Stock” means
the common stock, par value $0.001 per share, of Company.

       

      “Convertible Securities”
shall mean stock, instruments of indebtedness, or other securities convertible
into or exchangeable for shares of Common Stock.

       

      “Damages” means any
loss, damage, or liability (joint or several) to which a party hereto may become
subject under the Securities Act, the Exchange Act, or other federal or state
law, insofar as such loss, damage, or liability (or any action in respect
thereof) arises out of or is based upon:  (a) any untrue
statement or alleged untrue statement of a material fact contained in any
registration statement of Company, including any preliminary prospectus or final
prospectus contained therein or any amendments or supplements thereto, other
than a statement that arises out of or is based upon written information
furnished by or on behalf of Investor; (b) an omission or alleged omission
to state therein a material fact required to be stated therein, or necessary to
make the statements therein not misleading; or (c) any violation or alleged
violation by the indemnifying party (or any of its agents or Affiliates) of the
Securities Act, the Exchange Act, any state securities law, or any rule or
regulation promulgated under the Securities Act, the Exchange Act, or any state
securities law.

      
        
           

        

        
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      “Effective Price”
of Additional Shares of Common Stock shall mean the quotient determined by
dividing the total number of Additional Shares of Common Stock issued or sold,
or deemed to have been issued or sold, by Company in connection with such
issuance, into the Aggregate Consideration Received, or deemed to have been
received, by Company as provided herein, for the issue of such Additional Shares
of Common Stock.

       

      “Exchange Act” means
the Securities Exchange Act of 1934, as amended, and the rules and regulations
promulgated thereunder.

       

      “Excluded
Registration” means a registration relating to:  (a) the
sale of securities to employees of Company or a subsidiary of Company pursuant
to a stock option, stock purchase, or similar plan; or (b) an SEC Rule 145
transaction.

       

      “Form S-1” means such
form under the Securities Act as in effect on the date hereof or any successor
registration form under the Securities Act subsequently adopted by the
SEC.

       

      “Form S-3” means such
form under the Securities Act as in effect on the date hereof or any
registration form under the Securities Act subsequently adopted by the SEC that
permits incorporation of substantial information by reference to other documents
filed by the Company with the SEC.

       

      “Investor Designee”
means the member of Company’s board of directors designated by Investor pursuant
to the terms of the Voting Agreement.

       

      “Person” means any
individual, corporation, partnership, joint venture, association, limited
liability company, joint stock company, trust, or unincorporated association, or
any governmental authority, officer, department, commission, board, bureau or
instrumentality thereof.

       

      “Registrable
Securities” means (a) the Shares and (b) the Common Stock
issuable or issued upon exercise of the Option; excluding in all cases, however,
any Registrable Securities sold by a Person in a transaction in which the
applicable rights under this IR Agreement are not assigned pursuant to
Section 6.1, and
excluding for purposes of Article 2 any
shares for which registration rights have terminated pursuant to Section 2.8 of
this IR Agreement.

       

      “Rights or Options”
means warrants, options or other rights to purchase or acquire shares of Common
Stock or Convertible Securities, other than:  (a) warrants, options or
other rights granted or issued hereafter to employees, officers, directors,
contractors, consultants or advisers to, Company or any Company subsidiary
pursuant to incentive agreements, stock purchase or stock option plans,
contracts or other arrangements that are approved by the Company board of
directors; or (b) warrants, options or other rights issued or issuable to
parties that are providing Company with equipment leases, real property leases,
loans, credit lines or similar transactions, under arrangements, in each case,
approved by the Company board of directors.

       

      “SEC” means the United
States Securities and Exchange Commission.

       

      “SEC Rule 144” means
Rule 144 promulgated by the SEC under the Securities Act.

       

      “SEC Rule 145” means
Rule 145 promulgated by the SEC under the Securities Act.

       

      “Securities Act” means
the Securities Act of 1933, as amended, and the rules and regulations
promulgated thereunder.

      
        
           

        

        
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      “Selling Expenses”
means all underwriting discounts, selling commissions, and stock transfer taxes
applicable to the sale of Registrable Securities, and fees and disbursements of
counsel for Investor.

       

      “Trading Day” means
any day on which the Common Sock is traded for any period on Nasdaq, or on the
principal securities exchange or other securities market on which the Common
Stock is then being traded.

       

      “Transaction
Documents” means the Purchase Agreement, this IR Agreement and any
and all agreements, documents and instruments contemplated hereby or
thereby.

       

      ARTICLE
2

       

      REGISTRATION
RIGHTS

       

      2.1         Demand
Registration.

       

      (a)         If
at any time after the date of this IR Agreement Company receives a request
from Investor that Company file a Form S-1 registration statement with respect
to at least 500,000 shares of the Registrable Securities (subject to adjustment
for any stock split, stock dividend, recapitalization, reorganization, or the
like), then the Company shall, as soon as practicable, and in any event within
60 days after the date such request is given by Investor, file a Form S-1
registration statement under the Securities Act covering all Registrable
Securities that Investor requested to be registered, subject to the limitations
of Section 2.1(c)
and Section 2.1(d).

       

      (b)         If
at any time when it is eligible to use a Form S-3 registration statement,
Company receives a request from Investor that Company file a Form S-3
registration statement with respect to outstanding Registrable Securities of
Investor, then Company shall, as soon as practicable, and in any event within 30
days after the date such request is given by Investor, file a Form S-3
registration statement under the Securities Act covering all Registrable
Securities requested to be included in such registration by Investor, subject to
the limitations of Section 2.1(c)
and Section 2.1(d).

       

      (c)         If,
pursuant to Section 2.1(a)
or Section 2.1(b),
Investor intends to distribute the Registrable Securities covered by its request
by means of an underwriting, it shall so advise Company as a part of its request
for registration.  The underwriter(s) will be selected by Investor,
subject only to the reasonable approval of Company.  Investor shall,
together with Company as provided in Section 2.3(e),
enter into an underwriting agreement in customary form with the underwriter(s)
selected for such underwriting.  Notwithstanding any other provision
of this Section 2.1(c),
if the managing underwriter(s) advise(s) Investor in writing that marketing
factors require a limitation on the number of shares to be underwritten, then
the number of Registrable Securities that may be included in the underwriting
shall be so reduced; provided, however, that the
number of Registrable Securities held by Investor to be included in such
underwriting shall not be reduced unless all other securities are first entirely
excluded from the underwriting.

       

      (d)         Notwithstanding
the obligations set forth in Section 2.1(a)
and Section 2.1(b),
if Company furnishes to Investor a certificate signed by Company’s chief
executive officer stating that in the good faith judgment of Company’s board of
directors it would be materially detrimental to Company and its stockholders for
such registration statement to either become effective or remain effective for
as long as such registration statement otherwise would be required to remain
effective, because such action would (i) materially interfere with a
significant acquisition, corporate reorganization, or other similar transaction
involving Company, (ii) require premature disclosure of material
information that Company has a bona fide business purpose for preserving as
confidential, or (iii) render Company unable to comply with requirements
under the Securities Act or Exchange Act, then Company shall have the right to
defer taking action with respect to such filing for a period of not more than 90
days after the request of Investor is given; provided, however, that Company
may not invoke this right more than once in any 12-month period; and, provided further, that Company
shall not register any securities for its own account or that of any other
stockholder during such 90-day period other than pursuant to an Excluded
Registration.

      
        
           

        

        
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      2.2         Company
Registration.

       

      (a)         If
Company proposes to register (including, for this purpose, a registration
effected by Company for stockholders other than Investor) any of its securities
under the Securities Act in connection with the public offering of such
securities solely for cash (other than in an Excluded Registration), Company
shall, at such time, promptly give Investor notice of such
registration.  Upon the request of Investor given within 20 days after
such notice is given by Company, Company shall, subject to the provisions of
Section 2.2(b),
cause to be registered all of the Registrable Securities that Investor has
requested to be included in such registration.  Company shall have the
right to terminate or withdraw any registration initiated by it under this Section 2.2(a)
before the effective date of such registration, whether or not Investor has
elected to include Registrable Securities in such registration.  The
expenses (other than Selling Expenses) of such withdrawn registration shall be
borne by Company in accordance with Section 2.5.

       

      (b)         In
connection with any offering involving an underwriting of shares of the
Company’s capital stock pursuant to Section 2.2(a),
Company shall not be required to include any of Investor’s Registrable
Securities in such underwriting unless Investor accepts the terms of the
underwriting as agreed upon between Company and its underwriters, and then only
in such quantity as the underwriters in their sole discretion determine will not
jeopardize the success of the offering by Company.  If the total
number of Registrable Securities to be included in such offering exceeds the
number of securities to be sold (other than by Company) that the underwriters in
their reasonable discretion determine is compatible with the success of the
offering, then Company shall be required to include in the offering only that
number of Registrable Securities which the underwriters and Company in their
sole discretion determine will not jeopardize the success of the offering; provided, however, that in no
event shall the number of Registrable Securities included in the offering be
reduced unless all other securities (other than securities to be sold by
Company) are first entirely excluded from the offering.

       

      2.3         Obligations
of Company.  Whenever required
under this Article 2 to
effect the registration of any Registrable Securities, Company shall, as
expeditiously as reasonably possible:

       

      (a)         prepare
and file with the SEC a registration statement with respect to such Registrable
Securities and use its commercially reasonable efforts to cause such
registration statement to become effective and, upon the request of Investor,
keep such registration statement effective for a period of up to 120 days or, if
earlier, until the distribution contemplated in the registration statement has
been completed; provided, however, that
(i) such 120-day period shall be extended for a period of time equal to the
period Investor refrains, at the request of an underwriter of Common Stock (or
other securities) of Company, from selling any securities included in such
registration, and (ii) in the case of any registration of Registrable
Securities on Form S-3 that are intended to be offered on a continuous or
delayed basis, subject to compliance with applicable SEC rules, such 120-day
period shall be extended for up to an additional 60 days, if necessary, to keep
the registration statement effective until all such Registrable Securities are
sold;

       

      (b)         prepare
and file with the SEC such amendments and supplements to such registration
statement, and the prospectus used in connection with such registration
statement, as may be necessary to comply with the Securities Act in order to
enable the disposition of all securities covered by such registration
statement;

      
        
           

        

        
          -5-

          
            

          

        

        
           

        

      

       

      (c)         furnish
to Investor such numbers of copies of a prospectus, including a preliminary
prospectus, as required by the Securities Act, and such other documents as
Investor may reasonably request in order to facilitate its disposition of its
Registrable Securities;

       

      (d)         use
its commercially reasonable efforts to register and qualify the securities
covered by such registration statement under such other securities or Blue-Sky
laws of such jurisdictions as shall be reasonably requested by Investor; provided that Company
shall not be required to qualify to do business or to file a general consent to
service of process in any such states or jurisdictions unless Company is already
subject to service in such jurisdiction and except as may be required by the
Securities Act;

       

      (e)         in
the event of any underwritten public offering, enter into and perform its
obligations under an underwriting agreement, in usual and customary form, with
the underwriter(s) of such offering;

       

      (f)         use
its commercially reasonable efforts to cause all Registrable Securities covered
by such registration statement to be listed on a national securities exchange or
trading system and each securities exchange and trading system (if any) on which
similar securities issued by Company are then listed;

       

      (g)         provide
a transfer agent and registrar for all Registrable Securities registered
pursuant to this IR Agreement and provide a CUSIP number for all such
Registrable Securities, in each case not later than the effective date of such
registration;

       

      (h)         promptly
make available for inspection by Investor, any underwriter(s) participating in
any disposition pursuant to such registration statement, and any attorney or
accountant or other agent retained by any such underwriter or selected by
Investor, all financial and other records, pertinent corporate documents, and
properties of Company, and cause Company’s officers, directors, employees, and
independent accountants to supply all information reasonably requested by any
such seller, underwriter, attorney, accountant, or agent, in each case, as
necessary or advisable to verify the accuracy of the information in such
registration statement and to conduct appropriate due diligence in connection
therewith;

       

      (i)         notify
Investor, promptly after Company receives notice thereof, of the time when such
registration statement has been declared effective or a supplement to any
prospectus forming a part of such registration statement has been filed;
and

       

      (j)         after
such registration statement becomes effective, notify Investor of any request by
the SEC that Company amend or supplement, or any determination or decision by
Company to amend or supplement, such registration statement or
prospectus.

       

      2.4         Agreement
to Furnish Information.  It shall be a
condition precedent to the obligations of Company to take any action pursuant to
this Article 2 with
respect to the Registrable Securities of Investor that Investor shall furnish to
Company such information regarding itself, the Registrable Securities held by
it, and the intended method of disposition of such securities as is reasonably
required to effect the registration of such Registrable
Securities.

      
        
           

        

        
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      2.5         Expenses of
Registration.

       

      (a)         All
expenses (other than Selling Expenses) incurred in connection with
registrations, filings, or qualifications pursuant to Article 2,
including all registration, filing, and qualification fees, all printers’ and
accounting fees, all fees and disbursements of counsel for Company, and the
reasonable fees and disbursements of one counsel for Investor (such fees and
disbursements of counsel for Investor being limited to $20,000 in respect of any
one registration), shall be borne and paid by Company; provided, however, that Company
shall not be required to pay for any expenses of any registration proceeding
begun pursuant to Section 2.1(a)
or Section 2.1(b)
if the registration request is subsequently withdrawn at the request of Investor
(in which case Investor shall bear such expenses); provided further that if, at
the time of such withdrawal, Investor shall have learned of a material adverse
change in the condition, business, or prospects of Company from that known to
Investor at the time of its request and has withdrawn the request with
reasonable promptness after learning of such information then Investor shall not
be required to pay any of such expenses.

       

      (b)         All
Selling Expenses relating to Registrable Securities registered pursuant to this
Article 2
shall be borne and paid by Investor.

       

      2.6         Indemnification
and Contribution.  If any of
Investor’s Registrable Securities are included in a registration statement under
this Article 2:

       

      (a)         To
the extent permitted by law, Company will indemnify and hold harmless Investor,
the officers, directors, and shareholders of Investor, legal counsel and
accountants for Investor, any underwriter (as defined in the Securities Act) for
Investor, and each Person, if any, who controls Investor or such underwriter
within the meaning of the Securities Act or the Exchange Act, against any
Damages, and Company will pay to Investor and each such underwriter, controlling
Person, or other aforementioned Person any legal or other expenses reasonably
incurred thereby in connection with investigating or defending any claim or
proceeding from which Damages may result, as such expenses are incurred; provided, however, that the
indemnity agreement contained in this Section 2.6(a)
shall not apply to amounts paid in settlement of any such claim or proceeding if
such settlement is effected without the consent of Company, which consent shall
not be unreasonably withheld, nor shall Company be liable for any Damages to the
extent that they arise out of or are based upon actions or omissions made in
reliance upon and in conformity with written information furnished by or on
behalf of Investor or any such underwriter, controlling Person, or other
aforementioned Person expressly for use in connection with such
registration.

       

      (b)         To
the extent permitted by law, Investor will indemnify and hold harmless Company,
and each of its directors, each of its officers who has signed the registration
statement, each Person (if any), who controls Company within the meaning of the
Securities Act, legal counsel and accountants for Company, any underwriter (as
defined in the Securities Act), any other shareholder of Company selling
securities in such registration statement, and any controlling Person of any
such underwriter or other shareholder, against any Damages, in each case only to
the extent that such Damages arise out of or are based upon actions or omissions
made in reliance upon and in conformity with written information furnished by or
on behalf of Investor expressly for use in connection with such registration;
and Investor will pay to Company and each other aforementioned Person any legal
or other expenses reasonably incurred thereby in connection with investigating
or defending any claim or proceeding from which Damages may result, as such
expenses are incurred; provided, however, that the
indemnity agreement contained in this Section 2.6(b)
shall not apply to amounts paid in settlement of any such claim or proceeding if
such settlement is effected without the consent of Investor, which consent shall
not be unreasonably withheld; and provided, further, that in no
event shall the aggregate amounts payable by Investor by way of indemnity or
contribution under Section 2.6(b)
and Section 2.6(d)
exceed the proceeds from the offering received by Investor (net of any Selling
Expenses paid by Investor).

      
        
           

        

        
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      (c)         Promptly
after receipt by an indemnified party under this Section 2.6 of
notice of the commencement of any action (including any governmental action) for
which a party may be entitled to indemnification hereunder, such indemnified
party will, if a claim in respect thereof is to be made against any indemnifying
party under this Section 2.6,
give the indemnifying party notice of the commencement thereof; provided, however, that the
failure to so notify the indemnifying party shall not relieve the indemnifying
party from any of its obligations under this Section 2.6
except to the extent the indemnifying party is materially prejudiced by such
failure.  The indemnifying party shall have the right to participate
in such action and, to the extent the indemnifying party so desires, participate
jointly with any other indemnifying party to which notice has been given, and to
assume the defense thereof with counsel mutually satisfactory to the parties;
provided, however, that an
indemnified party (together with all other indemnified parties that may be
represented without conflict by one counsel) shall have the right to retain one
separate counsel, with the reasonable fees and expenses to be paid by the
indemnifying party, if representation of such indemnified party by the counsel
retained by the indemnifying party would be inappropriate due to actual or
potential differing interests between such indemnified party and any other party
represented by such counsel in such action.

       

      (d)         To
provide for just and equitable contribution to joint liability under the
Securities Act in any case in which either (i) any party otherwise entitled
to indemnification hereunder makes a claim for indemnification pursuant to this
Section 2.6 but
it is judicially determined (by the entry of a final judgment or decree by a
court of competent jurisdiction and the expiration of time to appeal or the
denial of the last right of appeal) that such indemnification may not be
enforced in such case, notwithstanding the fact that this Section 2.6
provides for indemnification in such case, or (ii) contribution under the
Securities Act may be required on the part of any party hereto for which
indemnification is provided under this Section 2.6,
then, and in each such case, such parties will contribute to the aggregate
losses, claims, damages, liabilities, or expenses to which they may be subject
(after contribution from others) in such proportion as is appropriate to reflect
the relative fault of each of the indemnifying party and the indemnified party
in connection with the statements, omissions, or other actions that resulted in
such loss, claim, damage, liability, or expense, as well as to reflect any other
relevant equitable considerations.  In no event shall Investor’s
liability pursuant to this Section 2.6(d),
when combined with the amounts paid or payable by Investor pursuant to Section 2.6(b),
exceed the proceeds from the offering received by Investor (net of any Selling
Expenses paid by Investor).

       

      (e)         Unless
otherwise superseded by an underwriting agreement entered into in connection
with the underwritten public offering, the obligations of Company and Investor
under this Section 2.6
shall survive the completion of any offering of Registrable Securities in a
registration under this Section 2.6, and
otherwise shall survive the termination of this IR Agreement.

       

      2.7         Limitations
on Subsequent Registration Rights.  From and after
the date of this IR Agreement, Company shall not, without the prior written
consent of Investor, enter into any agreement with any holder or prospective
holder of any securities of Company that would (a) allow such holder or
prospective holder to include such securities in any registration unless, under
the terms of such agreement, such holder or prospective holder may include such
securities in any such registration only to the extent that the inclusion of
such securities will not reduce the number of the Registrable Securities of
Investor that are included, or (b) allow such holder or prospective holder
to initiate a demand for registration of any securities held by such holder or
prospective holder.

      
        
           

        

        
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      2.8         Termination
of Registration Rights.  The right of
Investor to request registration or inclusion of Registrable Securities in any
registration pursuant to Section 2.1 or
Section 2.2
shall terminate upon the earliest to occur of:

       

      (a)         the
time when all of Investor’s Registrable Securities could be sold under SEC Rule
144 without the requirement for Company to be in compliance with the current
public information required under SEC Rule 144 as to such Registrable Securities
and without volume or manner-of-sale restrictions; and

       

      (b)         the
fifth anniversary of the date of this IR Agreement.

       

      ARTICLE
3

       

      INFORMATION
RIGHTS

       

      3.1         Delivery
of Financial Information.  Company shall
deliver the following financial information to Investor:

       

      (a)         as
soon as practicable, but in any event within 90 days after the end of each
fiscal year of Company, (i) a balance sheet as of the end of such year,
(ii) statements of income and of cash flows for such year, and (iii) a
statement of stockholders’ equity as of the end of such year, all such financial
statements audited and certified by independent public accountants selected by
Company;

       

      (b)         as
soon as practicable, but in any event within 45 days after the end of each of
the first three quarters of each fiscal year of Company, unaudited statements of
income and of cash flows for such fiscal quarter, and an unaudited balance sheet
and a statement of stockholders’ equity as of the end of such fiscal quarter,
all prepared in accordance with GAAP (except that such financial statements may
(i) be subject to normal year-end audit adjustments and (ii) not
contain all notes thereto that may be required in accordance with
GAAP);

       

      (c)         if
requested by Investor, as soon as practicable, but in any event within 30 days
of the end of each month, an unaudited income statement and statement of cash
flows for such month, and an unaudited balance sheet and statement of
stockholders’ equity as of the end of such month, all prepared in accordance
with GAAP (except that such financial statements may (i) be subject to
normal year-end audit adjustments and (ii) not contain all notes thereto
that may be required in accordance with GAAP);

       

      (d)         if
requested by Investor, as soon as practicable, but in any event 30 days before
the end of each fiscal year, an operating budget for the next fiscal year (the
“Budget”),
approved by Company’s board of directors and prepared on a monthly basis,
including a forecast of revenues, expenses and cash position on a month-to-month
basis for the next fiscal year; and

       

      (e)         such
other information relating to the financial condition of Company as shall be
determined by the board in its reasonable discretion.

       

      The
financial information delivered pursuant to this Section 3.1
shall be the consolidated and consolidating financial statements of Company and
all of its consolidated subsidiaries.  Company will be deemed to have
satisfied its obligations under clauses (a) and (b) above if such financial
information is included in a report that Company is required to file with the
SEC pursuant to Section 13 or 15(d) of the Exchange Act in respect of the
applicable period, and Company files such report with the SEC through the SEC’s
EDGAR database no later than the time such report is required to be filed with
the SEC pursuant to the Exchange Act (taking into account any applicable grace
periods provided thereunder).

      
        
           

        

        
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      Notwithstanding
anything else in this Section 3.1 to
the contrary, Company may cease providing the information set forth in this
Section 3.1
during the period starting with the date 30 days before Company’s good-faith
estimate of the date of filing of a registration statement if it reasonably
concludes it must do so to comply with SEC rules applicable to such registration
statement and related offering; provided that
Company’s covenants under this Section 3.1
shall be reinstated at such time as Company is no longer actively employing its
commercially reasonable efforts to cause such registration statement to become
effective.

       

      3.2         Notice of
Certain Transactions.  Subject to the
fiduciary duties of Company’s board of directors, Company shall promptly (but in
any event, within 72 hours) notify Investor in writing in the event that Company
receives any proposal or offer from any Person or group of Persons that, in the
good faith judgment of the Company’s board of directors is “bona fide,” and that
provides for, directly or indirectly, in a single transaction or a series of
related transactions, (a) a transaction contemplated by subpart (b) or (c)
of the definition of “Change in Control,” or (b) the acquisition of
beneficial ownership of 25% or more of (i) the combined voting power of
Company’s then-outstanding securities or (ii) the value (as determined by
Company’s board of directors) of the consolidated assets of Company and its
Subsidiaries.  Company’s notification to Investor shall include the
identity of such Person or group of Persons and the material details of the
proposed transaction.  Company shall thereafter keep Investor
reasonably informed (orally and in writing) of the status of any such proposed
transaction, including the material terms and conditions thereof and of any
material modification thereto.

       

      3.3         Right of
Inspection.  Company shall
permit Investor, at Investor’s expense and on no fewer than five days’ prior
written notice to Company, to visit and inspect Company’s properties, examine
its books of account and records, and discuss Company’s affairs, finances, and
accounts with its officers, during normal business hours of Company as may be
reasonably requested by Investor; provided, however, that Company
shall not be obligated pursuant to this Section 3.3 to
provide access to any information that it reasonably and in good faith considers
to be a trade secret or confidential information (unless covered by an
enforceable confidentiality agreement, in form acceptable to Company) or the
disclosure of which would adversely affect the attorney-client privilege between
Company and its counsel; and provided, further, that Company
may conduct any such visitation, inspection, examination and discussion no more
than once per calendar quarter.

       

      3.4         Termination
of Information Rights.  The covenants set
forth in Section 3.1,
Section 3.2, and
Section 3.3
shall terminate and be of no further force or effect upon the earlier to occur
of:  (a) the closing of a Change in Control of Company; and
(b) the date that Investor no longer holds at least 5% of the Shares
acquired by Investor on the date hereof.

       

      ARTICLE
4

       

      OPTION
TO PURCHASE ADDITIONAL SHARES

       

      4.1         Grant of
Option; Option Period.  Subject to the
terms and conditions set forth in this Article 4 and
elsewhere in the Transaction Documents, Investor is hereby granted by Company
the irrevocable option (the “Option”), exercisable
during the Option Period (as defined below), to purchase, in the sole discretion
of Investor, up to an additional $4,000,000 of Common Stock (the “Aggregate Option Amount”),
at the then-current Exercise Price (as defined below).  The Option may
be exercised at any time or from time to time by Investor during the period that
begins on the date hereof and ends at 5:00 p.m. (Eastern Time) on the second
anniversary of such date (such period, the “Option Period”).

      
        
           

        

        
          -10-

          
            

          

        

        
           

        

      

       

      4.2         Manner of
Exercise.  During the Option
Period, the Option may be exercised, in full or in part, upon surrender of the
Notice of Exercise attached hereto as Exhibit A (the
“Notice of Exercise”),
duly completed and executed, together with the full Exercise Price for each
share of Common Stock as to which the Option is exercised (in accordance with
Section 4.3
below), at the office of Company (Document Capture Technologies, Inc., 1798
Technology Drive, Suite 178, San Jose, California 95110; Fax: (408) 436-9888),
or at such other office or agency as Company may designate in writing, by
overnight mail.  The “Date of Exercise”
of the Option shall be defined as the date that the Notice of Exercise attached
hereto as Exhibit A,
completed and executed, is sent by facsimile to Company, provided that the
original Notice of Exercise is received by Company and the Exercise Price is
satisfied, each as soon as practicable and in any event within three Business
Days thereafter.  Alternatively, the Date of Exercise shall be defined
as the date that both the original Notice of Exercise and the full Exercise
Price for the shares of Common Stock being acquired in connection with such
exercise are received by Company, if Investor has not sent advance notice by
facsimile.  Upon delivery of the duly completed and executed Notice of
Exercise to Company by facsimile or otherwise, and receipt by Company of the
full Exercise Price for the shares of Common Stock being acquired in connection
with such exercise, Investor shall be deemed for all corporate purposes to have
become the holder of record of the shares of Common Stock with respect to which
the Option has been exercised, irrespective of the date such shares of Common
Stock are credited to Investor’s Depository Trust Company account or the date of
delivery of the certificates evidencing such shares, as the case may
be.

       

      4.3         Payment
of Exercise Price.  Payment of the
Exercise Price may be made by Holder in cash, by bank or cashier’s check or by
wire transfer.

       

      4.4         Delivery
of Common Stock Upon Exercise.  Within three
Business Days after any Date of Exercise (the “Delivery Period”),
Company shall issue and deliver (or cause its transfer agent so to issue and
deliver) in accordance with the terms hereof to or upon the order of Investor
that number of shares of Common Stock (“Exercise Shares”)
for the portion of this Option that has been exercised thereby.  Upon
the exercise of this Option or any part thereof, Company shall, at its own cost
and expense, take all necessary action, including obtaining and delivering an
opinion of counsel to ensure that the transfer agent shall issue stock
certificates in the name of Investor or such other persons as designated by
Investor and in such denominations as are specified in the Notice of Exercise
representing the number of shares of Common Stock issuable upon such
exercise.

       

      4.5         Adjustments
to Exercise Price.  The price per
share of Common Stock for which this Option may be exercised (the “Exercise Price”)
is $1.036, subject to adjustment as follows:

       

      (a)         If
Company shall, at any time or from time to time after the date hereof, effect a
subdivision of the outstanding Common Stock, the Exercise Price in effect
immediately before that subdivision shall be proportionately
decreased.  Conversely, if Company shall, at any time or from time to
time after the date hereof, combine the outstanding shares of Common Stock into
a smaller number of shares, the Exercise Price in effect immediately before that
combination shall be proportionately increased.  Any adjustment
pursuant to this clause (a) shall become effective at the close of business on
the date the subdivision or combination becomes effective.

       

      (b)         If
Company, at any time or from time to time after the date hereof, makes, or fixes
a record date for the determination of holders of Common Stock entitled to
receive, a dividend or other distribution payable in additional shares of Common
Stock, in each such event the Exercise Price that is then in effect shall be
decreased as of the time of such issuance or, in the event such record date is
fixed, as of the close of business on such record date, by multiplying the
Exercise Price then in effect by a fraction (i) the numerator of which is
the total number of shares of Common Stock issued and outstanding immediately
prior to the time of such issuance or the close of business on such record date,
and (ii) the denominator of which is the total number of shares of Common
Stock issued and outstanding immediately prior to the time of such issuance or
the close of business on such record date plus the number of shares of Common
Stock issuable in payment of such dividend or distribution; provided, however, that if such
record date is fixed and such dividend is not fully paid or if such distribution
is not fully made on the date fixed therefor, the Exercise Price shall be
recomputed accordingly as of the close of business on such record date and
thereafter the Exercise Price shall be adjusted pursuant to this clause (b) to
reflect the actual payment of such dividend or distribution.

      
        
           

        

        
          -11-

          
            

          

        

        
           

        

      

       

      (c)         If
at any time or from time to time after the date hereof, the Common Stock
issuable upon the exercise of the Option is changed into the same or a different
number of shares of any class or classes of stock, whether by recapitalization,
reclassification or otherwise (other than a subdivision or combination of shares
or stock dividend or a reorganization, merger, consolidation or sale of assets
provided for elsewhere in this Section 4.5), in
any such event Investor shall have the right thereafter to exercise the Option
into the kind and amount of stock and other securities and property receivable
upon such recapitalization, reclassification or other change by holders of the
maximum number of shares of Common Stock for which the Option could have been
exercised immediately prior to such recapitalization, reclassification or
change, all subject to further adjustment as provided herein or with respect to
such other securities or property by the terms thereof.

       

      (d)         If
at any time or from time to time after the date hereof, there is a capital
reorganization of the Common Stock (other than a recapitalization, subdivision,
combination, reclassification, exchange, or substitution of shares provided for
elsewhere in this Section 4.5), as
a part of such capital reorganization, provision shall be made so that Investor
shall thereafter be entitled to receive upon exercise of the Option the number
of shares of stock or other securities or property of Company to which a holder
of the number of shares of Common Stock deliverable upon exercise would have
been entitled on such capital reorganization, subject to adjustment in respect
of such stock or securities by the terms thereof.  In any such case,
appropriate adjustment shall be made in the application of the provisions of
this Section 4.5 with
respect to the rights of Investor after the capital reorganization to the end
that the provisions of this Section 4.5
shall be applicable after that event and be as nearly equivalent as
practicable.

       

      (e)         If
at any time or from time to time after the date hereof Company issues or sells,
or is deemed by the provisions of this clause (f) to have issued or sold,
Additional Shares of Common Stock, otherwise than in connection with a stock
split or combination as provided in clause (a) above, a dividend or distribution
as provided in clause (b) above, a reclassification, exchange or substitution as
provided in clause (c) above, or a reorganization, merger, consolidation or sale
of assets as provided in clause (d) above, for an Effective Price that is less
than the Exercise Price in effect immediately prior to such issue or sale (or
deemed issue or sale), then, and in each such case, the then-existing Exercise
Price shall be reduced as of the close of business on the date of such issue or
sale to a price equal to the consideration per share received by Company for
such Additional Shares of Common Stock so issued.

       

      (f)         For
the purpose of making any adjustment to the Exercise Price required under this
Section 4.5, if
Company issues or sells any Rights or Options or Convertible Securities and if
the Effective Price of the shares of Common Stock issuable upon exercise of such
Rights or Options and/or the conversion or exchange of Convertible Securities
(computed without reference to any additional or similar protective or
antidilution clauses) is less than the Exercise Price then in effect, then
Company shall be deemed to have issued, at the time of the issuance of such
Rights, Options or Convertible Securities, that number of Additional Shares of
Common Stock that is equal to the maximum number of shares of Common Stock
issuable upon exercise or conversion of such Rights, Options or Convertible
Securities upon their issuance and to have received, as the Aggregate
Consideration Received for the issuance of such shares, an amount equal to the
total amount of the consideration, if any, received by Company for the issuance
of such Rights or Options or Convertible Securities, plus, in the case of such
Rights or Options, the minimum amounts of consideration, if any, payable to
Company upon the exercise in full of such Rights or Options, plus, in the case
of Convertible Securities, the minimum amounts of consideration, if any, payable
to Company (other than by cancellation of liabilities or obligations evidenced
by such Convertible Securities) upon the conversion or exchange thereof;
provided that:

      
        
           

        

        
          -12-

          
            

          

        

        
           

        

      

       

      (i)         if
the minimum amounts of such consideration cannot be ascertained, but are a
function of antidilution or similar protective clauses, then Company shall be
deemed to have received the minimum amounts of consideration without reference
to such clauses;

       

      (ii)           if
the minimum amount of consideration payable to Company upon the exercise of
Rights or Options or the conversion or exchange of Convertible Securities is
reduced over time or upon the occurrence or non-occurrence of specified events
other than by reason of antidilution or similar protective adjustments, then the
Effective Price shall be recalculated using the figure to which such minimum
amount of consideration is reduced; and

       

      (iii)           if
the minimum amount of consideration payable to Company upon the exercise of such
Rights or Options or the conversion or exchange of Convertible Securities is
subsequently increased, then the Effective Price shall again be recalculated
using the increased minimum amount of consideration payable to Company upon the
exercise of such Rights or Options or the conversion or exchange of such
Convertible Securities.

       

      (g)         No
further adjustment of the Exercise Price shall be made as a result of the actual
issuance of shares of Common Stock on the exercise of any such Rights or Options
or the conversion or exchange of any such Convertible Securities.  If
any such Rights or Options or the conversion rights represented by any such
Convertible Securities shall expire without having been fully exercised, then
the Exercise Price as adjusted upon the issuance of such Rights or Options or
Convertible Securities shall be readjusted to the Exercise Price which would
have been in effect had an adjustment been made on the basis that the only
shares of Common Stock so issued were the shares of Common Stock, if any, that
were actually issued or sold on the exercise of such Rights or Options or rights
of conversion or exchange of such Convertible Securities, and such shares of
Common Stock, if any, were issued or sold for the consideration actually
received by Company upon such exercise, plus the consideration, if any, actually
received by Company for the granting of all such Rights or Options, whether or
not exercised, plus the consideration received for issuing or selling all such
Convertible Securities actually converted or exchanged, plus the consideration,
if any, actually received by Company (other than by cancellation of liabilities
or obligations evidenced by such Convertible Securities) on the conversion or
exchange of such Convertible Securities.

       

      (h)         No
adjustment in the Exercise Price shall be made in respect of the issuance of
Additional Shares of Common Stock unless the consideration per share for an
Additional Share of Common stock issued or deemed to be issued by Company is
less than the Exercise Price in effect immediately prior to such
issue.

       

      (i)         All
calculations under this Section 4.5
shall be made to the nearest 1/100th of a
share, as the case may be.

       

      4.6         No
Fractional Shares.  No fractional
shares or scrip representing fractional shares shall be issuable upon the
exercise of the Option, but on exercise of the Option, Investor may purchase
only a whole number of shares of Common Stock.  If, on exercise of the
Option, Investor would be entitled to a fractional share of Common Stock or a
right to acquire a fractional share of Common Stock, such fractional share shall
be disregarded and the number of shares of Common Stock issuable upon exercise
shall be the next higher whole number of shares.

      
        
           

        

        
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      4.7         Anti-Dilution
Protection.

       

      (a)         If
at any time or from time to time after the date hereof and prior to the eighteen
(18) month anniversary of the date hereof (such period, the “Common Stock Anti-Dilution
Period”), Company issues or sells, or is deemed to have issued or sold
pursuant to Section 4.7(b),
Additional Shares of Common Stock for an Effective Price that is less than
$1.036 per share, as adjusted for any stock splits, stock dividends, stock
combinations, mergers, reorganizations or other actions occurring after the date
hereof which generally affect the number of shares of stock of the Company
outstanding, (the “Purchase Price”),
then, and in each such case, the Company shall issue additional shares of Common
Stock to the Investor without further consideration, in an amount equal to the
difference between (x) the number of Shares held, as of the time immediately
prior to such issuance or sale, or deemed issuance or sale, as the case may be,
by Investor (which, in the case of more than one issuance of shares pursuant to
this Section 4.7, may
include shares of Common Stock previously received by Investor pursuant to this
Section 4.7)
(the “Existing
Shares”), and (y) the number of shares of Common Stock determined in
accordance with the following formula:

       

      Number of
Shares = (A * B) ÷ C.

       

      For
purposes of the foregoing formula, the following definitions shall
apply:

       

      
        	 	
                 
      

              	
                (i)         “A”
      shall mean the Existing Shares as defined
above;

              

      

       

      
        	
                 
      

              	
                (iv)

              	
                 “B”
      shall mean the Purchase Price as defined above;
  and

              

      

       

      
        	 	
                 
      

              	
                (v)        “C”
      shall mean the Effective Price as defined
above.

              

      

       

      (b)         For
purposes of this Section 4.7, if
during the Common Stock Anti-Dilution Period, Company issues or sells any Rights
or Options or Convertible Securities and if the Effective Price of the shares of
Common Stock issuable upon exercise of such Rights or Options and/or the
conversion or exchange of Convertible Securities (computed without reference to
any additional or similar protective or antidilution clauses) is less than the
Purchase Price, then Company shall be deemed to have issued, at the time of the
issuance of such Rights, Options or Convertible Securities, that number of
Additional Shares of Common Stock that is equal to the maximum number of shares
of Common Stock issuable upon exercise or conversion of such Rights, Options or
Convertible Securities upon their issuance and to have received, as the
Aggregate Consideration Received for the issuance of such shares, an amount
equal to the total amount of the consideration, if any, received by Company for
the issuance of such Rights or Options or Convertible Securities, plus, in the
case of such Rights or Options, the minimum amounts of consideration, if any,
payable to Company upon the exercise in full of such Rights or Options, plus, in
the case of Convertible Securities, the minimum amounts of consideration, if
any, payable to Company (other than by cancellation of liabilities or
obligations evidenced by such Convertible Securities) upon the conversion or
exchange thereof; provided that:

       

      (i)         if
the minimum amounts of such consideration cannot be ascertained, but are a
function of antidilution or similar protective clauses, then Company shall be
deemed to have received the minimum amounts of consideration without reference
to such clauses;

      
        
           

        

        
          -14-

          
            

          

        

        
           

        

      

      (ii)           if
the minimum amount of consideration payable to Company upon the exercise of
Rights or Options or the conversion or exchange of Convertible Securities is
reduced over time or upon the occurrence or non-occurrence of specified events
other than by reason of antidilution or similar protective adjustments, then the
Effective Price shall be recalculated using the figure to which such minimum
amount of consideration is reduced; and

       

      (iii)           if
the minimum amount of consideration payable to Company upon the exercise of such
Rights or Options or the conversion or exchange of Convertible Securities is
subsequently increased, then the Effective Price shall again be recalculated
using the increased minimum amount of consideration payable to Company upon the
exercise of such Rights or Options or the conversion or exchange of such
Convertible Securities.

       

      (c)         No
additional shares of Common Stock shall be issued pursuant to this Section 4.7
as a result of the actual issuance of shares of Common Stock on the exercise of
any such Rights or Options or the conversion or exchange of any such Convertible
Securities.

       

      (d)         Investor
shall have the right to waive the receipt or issuance of additional shares of
Common Stock which would otherwise be issuable to it pursuant to this Section 4.7.

       

      4.8         No Rights
as Stockholder.  Nothing in this
Article 4
shall be construed as conferring upon Investor any rights as a stockholder of
Company.

       

      ARTICLE
5

       

      OTHER
COVENANTS

       

      5.1         Restrictions on
Transfer.

       

      (a)         The
Registrable Securities may only be disposed of pursuant to an effective
registration statement under the Securities Act, to Company, to an Affiliate, or
pursuant to an available exemption from or in a transaction not subject to the
registration requirements of the Securities Act, and in compliance with any
applicable federal and state securities laws.  Until such time as the
Registrable Securities can be freely transferred in a public sale without
registration under the Securities Act, in connection with any transfer of any
such securities, other than pursuant to an effective registration statement, to
an Affiliate or to Company, an opinion of counsel will be required to the effect
that such transfer does not require registration of such transferred securities
under the Securities Act.  Any such transferee shall agree in writing
to be bound by the terms of this IR Agreement and shall have the
obligations of Investor hereunder.

       

      (b)         Investor
agrees to the imprinting, so long as is required by this Section 5.1, of
the following legend on any certificates representing Registrable
Securities:

       

      THESE
SECURITIES HAVE NOT BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION
OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM
REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES
ACT”).  THESE SECURITIES ARE “RESTRICTED” AND MAY NOT BE OFFERED OR
SOLD UNLESS THE SECURITIES ARE REGISTERED UNDER THE ACT, OR ELIGIBLE TO BE
OFFERED OR SOLD PURSUANT TO AVAILABLE EXEMPTIONS FROM THE REGISTRATION
REQUIREMENTS OF THE ACT, AND, EXCEPT WITH RESPECT TO A TRANSFER TO AN AFFILIATE
OF HOLDER OR TO COMPANY, COMPANY WILL BE PROVIDED WITH OPINION OF COUNSEL OR
OTHER SUCH INFORMATION AS IT MAY REASONABLY REQUIRE TO CONFIRM THAT SUCH
EXEMPTIONS ARE AVAILABLE.

      
        
           

        

        
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      (c)         Certificates
representing Registrable Securities shall not be required to contain any
restrictive legend:  (i) while a registration statement covering
the resale of such securities is effective under the Securities Act;
(ii) following any sale of such securities pursuant to SEC Rule 144 under
the Securities Act; (iii) if such securities are eligible for sale under
SEC Rule 144 without the requirement for Company to be in compliance with the
current public information required under SEC Rule 144 as to such Registrable
Securities and without volume or manner-of-sale restrictions; or (iv) if
such legend is not required under applicable law, or, in the opinion of the
Company’s counsel, in accordance with the requirements of the Securities Act, or
other interpretations and pronouncements of the SEC.  Upon request of
Investor, Company shall cause its counsel to issue a legal opinion to Company’s
transfer agent promptly to effect the removal of such legend pursuant to the
foregoing sentence.  If the Option is exercised at a time when
(x) there is an effective registration statement covering the resale under
the Securities Act of the Registrable Securities issued in connection therewith,
(y) such Registrable Securities may be sold under SEC Rule 144 without the
requirement for Company to be in compliance with the current public information
required under SEC Rule 144 as to such Registrable Securities and without volume
or manner-of-sale restriction, or (z) such legend is not otherwise required
under applicable law, then the certificate(s) evidencing such Registrable
Securities shall be issued free of all restrictive legends.  Company
agrees that at such time as such restrictive legend is not required as provided
in this Section 5.1(c),
it will, as soon as practicable following the delivery by Investor to Company’s
transfer agent of certificates representing the Registrable Securities, as the
case may be, deliver or cause to be delivered to Investor replacement
certificates free from all restrictive legends.  Unless otherwise
required by law or judicial order, Company shall not make any notation on its
records or give any instructions to its transfer agent that enlarge the
restrictions on transfer set forth in this IR Agreement.

       

      5.2         Listing
of Registrable Securities.  If, after the
date hereof, Company shall list its Common Stock on any of the New York Stock
Exchange, NYSE AMEX, or the NASDAQ Stock Market (each, a “Subsequent Market”),
then Company shall include in such listing for the benefit of Investor all
Registrable Securities.  If the number of Registrable Securities
issuable upon exercise in full of the Option exceed the number of Registrable
Securities previously listed on account thereof with a Subsequent Market, then
Company shall take the necessary actions to immediately list a number of
Registrable Securities equal to such difference.

       

      5.3         Reports.  With a view to
making available to Investor the benefits of SEC Rule 144 and any other rule or
regulation of the SEC that may at any time permit Investor to sell securities of
the Company to the public without registration or pursuant to a registration on
Form S-3, Company shall:

       

      (a)         make
and keep available adequate current public information, as those terms are
understood and defined in SEC Rule 144, at all times after the date
hereof;

       

      (b)         timely
file (or obtain extensions in respect thereof and file within the applicable
grace period) with the SEC all reports and other documents required of Company
under the Securities Act and the Exchange Act (including Section 13(a) and 15(d)
thereof); and

       

      (c)         furnish
to Investor, so long as Investor owns any Registrable Securities, forthwith upon
request:  (i) to the extent accurate, a written statement by
Company that it has complied with the reporting requirements of SEC Rule 144,
the Securities Act, and the Exchange Act, or that it qualifies as a registrant
whose securities may be resold pursuant to Form S-3 (at any time after the
Company so qualifies); (ii) a copy of the most recent annual or quarterly
report of Company and such other reports and documents so filed by Company; and
(iii) such other information as may be reasonably requested in availing
Investor of any rule or regulation of the SEC that permits the selling of any
such securities without registration (including causing its attorneys to render
and deliver any legal opinion required in order to permit Investor to receive
Registrable Securities free of all restrictive legends and to subsequently sell
Registrable Securities under SEC Rule 144 upon receipt of a notice of an
intention to sell or other form of notice having a similar effect) or pursuant
to Form S-3 (at any time after Company so qualifies to use such
form).

      
        
           

        

        
          -16-

          
            

          

        

        
           

        

      

       

      Without
limiting the generality of clause (a) above, if at any time Company is not
required to file reports pursuant to Section 13(a) or 15(d) the Exchange Act, it
will, at its expense, prepare and furnish to Investor and make publicly
available in accordance with SEC Rule 144 such information as is required for
Investor to sell Registrable Securities under SEC Rule 144.

       

      5.4         Directors’ Liability;
Indemnification; Insurance.

       

      (a)         Company’s
certificate of incorporation and bylaws shall provide (i) for elimination
of the liability of directors to the maximum extent permitted by law and
(ii) for indemnification of directors for acts on behalf of Company to the
maximum extent permitted by law.  In addition, Company shall enter
into and use its best efforts to at all times maintain indemnification
agreements with each of its directors to indemnify such directors to the maximum
extent permissible under applicable law.

       

      (b)         If
Company or any of its successors or assignees consolidates with or merges into
any other Person and is not the continuing or surviving corporation or entity of
such consolidation or merger, then to the extent necessary, proper provision
shall be made so that the successors and assignees of Company assume the
obligations of Company with respect to indemnification of members of the board
of directors as in effect immediately before such transaction, whether such
obligations are contained in Company’s bylaws, its certificate of incorporation,
or elsewhere, as the case may be.

       

      (c)         Company
has, from financially sound and reputable insurers, Directors and Officers
liability insurance in an amount and on terms and conditions satisfactory to the
board of directors with total limits of $5 million of “Side A” and “Side B”
coverage, and will use reasonable best efforts to cause such insurance policy to
be maintained at all times during the term of that certain Voting Agreement, of
even date herewith, among Company, Investor and the stockholders of Company
whose names are set forth on the signature pages thereto (the “Voting Agreement”).  In
addition, the policy shall not be cancelable by Company without prior approval
by the board of directors, including the Investor Designee.

       

      5.5         Termination
of Covenants.  The covenants set
forth in this Article 5,
except for Section 5.1 and
Section 5.4(b),
shall terminate and be of no further force or effect upon the earlier to occur
of:  (a) the closing of a Change in Control of Company; and
(b) the date that Investor no longer owns, beneficially or of record, any
Registrable Securities.

       

      5.6         Confidential
Treatment.  In the event that
Company is required by law or stock market or trading facility regulation to
file with the SEC as an exhibit to any filing under the Exchange Act or the
Securities Act all or any portion of that certain Strategic Supplier Master
Procurement Agreement between Company and Investor (including, without
limitation, any portion of the amendment thereto of even date herewith), or any
other commercial agreement between Company and Investor, Company shall use its
best efforts to seek confidential treatment under applicable securities laws of
such portions of such agreement(s) as may reasonably be available, and shall
consult with Investor in connection therewith.

      
        
           

        

        
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      ARTICLE
6

       

      MISCELLANEOUS

       

      6.1         Successors
and Assigns.  The rights under
this IR Agreement may be assigned (but only with all related obligations)
by Investor to a transferee in connection with a transfer of the Registrable
Securities that is permissible under the terms of the Transaction Documents;
provided, however, that
(a) Company is, within a reasonable time after such transfer, furnished
with written notice of the name and address of such transferee and, if
applicable, the Registrable Securities with respect to which such rights are
being transferred; and (b) such transferee agrees in a written instrument
delivered to Company to be bound by and subject to the terms and conditions of
this IR Agreement.  The terms and conditions of this
IR Agreement shall inure to the benefit of and be binding upon the
respective successors and assigns of the parties.  Nothing in this
IR Agreement, express or implied, is intended to confer upon any party
other than the parties hereto or their respective successors and assigns any
rights, remedies, obligations, or liabilities under or by reason of this
IR Agreement, except as expressly provided in this
IR Agreement.

       

      6.2         Governing
Law.  All questions
concerning the construction, validity, enforcement and interpretation of this
IR Agreement shall be governed by and construed and enforced in accordance
with the internal laws of the State of New York, without regard to the
principles of conflicts of law thereof.

       

      6.3         Execution.  This
IR Agreement may be executed in two or more counterparts, all of which when
taken together shall be considered one and the same agreement and shall become
effective when counterparts have been signed by each party and delivered to the
other party, it being understood that all parties need not sign the same
counterpart.  In the event that any signature is delivered by
facsimile transmission, such signature shall create a valid and binding
obligation of the party executing (or on whose behalf such signature is
executed) the same with the same force and effect as if such facsimile signature
page were an original thereof.

       

      6.4         Notices.  Any and all
notices or other communications or deliveries required or permitted to be
provided hereunder shall be in writing and shall be deemed given and effective
on the earliest of (a) the date of transmission, if such notice or
communication is delivered via facsimile at the facsimile telephone number
specified in this Section at or prior to 5:00 p.m. (Eastern Time) on a Business
Day, (b) the Business Day after the date of transmission, if such notice or
communication is delivered via facsimile at the facsimile telephone number
specified in this IR Agreement later than 5:00 p.m. (Eastern Time) on any
date and earlier than 11:59 p.m. (Eastern Time) on such date, (c) the
Business Day following the date of mailing, if sent by nationally recognized
overnight courier service, or (d) upon actual receipt by the party to whom
such notice is required to be given.  The address for such notices and
communications shall be as follows:

       

      
        If to Investor,
to:

      

       

      NCR
Corporation

      3097
Satellite Boulevard

      Duluth,
GA 30096

      Attn:  General
Counsel

      Fax:  (404)
487-8949

      
        
           

        

        
          -18-

          
            

          

        

        
           

        

      

       

      
        with a copy (if such notice
is being provided pursuant to Section 3.2 hereof) to:

      

       

      NCR
Corporation

      7 World
Trade Center

      250
Greenwich Street

      New York,
NY 10007

      Attn:  Chief
Financial Officer

      Fax:  (513)
719-6990

       

      If to Company,
to:

       

      Document
Capture Technologies, Inc.

      1798
Technology Drive

      Suite
178

      San Jose,
California 95110

      Attn:  Chief
Executive Officer

      Fax:  (408)
436-9888

       

      or such
other address as may be designated in writing hereafter, in the same manner, by
such Person.

       

      6.5         Amendments;
Waivers.  No provision of
this IR Agreement may be waived or amended except in a written instrument
signed, in the case of an amendment, by Company and Investor or, in the case of
a waiver, by the party against whom enforcement of any such waiver is
sought.  No waiver of any default with respect to any provision,
condition or requirement of this IR Agreement shall be deemed to be a
continuing waiver in the future or a waiver of any other provision, condition or
requirement hereof, nor shall any delay or omission of either party to exercise
any right hereunder in any manner impair the exercise of any such right accruing
to it thereafter.

       

      6.6         Delays or
Omissions.  No delay or
omission to exercise any right, power or remedy accruing to any party under this
IR Agreement, upon any breach or default of any other party under this
IR Agreement, shall impair any such right, power or remedy of such
non-breaching or non-defaulting party nor shall it be construed to be a waiver
of any such breach or default, or an acquiescence therein, or of or in any
similar breach or default thereafter occurring.

       

      6.7         Severability.  Any provision of
this IR Agreement which is prohibited or unenforceable in any jurisdiction
shall, as to such jurisdiction, be ineffective to the extent of such prohibition
or unenforceability without invalidating the remaining provisions of this
IR Agreement, and any such prohibition or unenforceability in any
jurisdiction will not invalidate or render unenforceable such provision in any
other jurisdiction.  To the extent permitted by law, each party hereto
hereby waives any provision of law that renders any such provision prohibited or
unenforceable in any respect.

       

      6.8         Entire
Agreement.  This
IR Agreement and the other Transaction Documents, together with the
Exhibits and Schedules thereto, contain the entire understanding of the parties
with respect to the subject matter hereof and supersede all prior agreements and
understandings, oral or written, with respect to such matters, which the parties
acknowledge have been merged into such documents, exhibits and
schedules.

       

      6.9         Specific
Performance.  In addition to
being entitled to exercise all rights provided herein or granted by law,
including recovery of damages, Investor and Company will be entitled to specific
performance of each other’s obligations under this
IR Agreement.  The parties agree that monetary damages may not be
adequate compensation for any loss incurred by reason of any breach of
obligations described in the foregoing sentence and hereby agree to waive in any
action for specific performance of any such obligation the defense that a remedy
at law would be adequate.

      
        
           

        

        
          -19-

          
            

          

        

        
           

        

      

       

      6.10           Remedies
Cumulative.  No right, remedy,
or election given by any term of this IR Agreement shall be deemed
exclusive, but each shall be cumulative with all other rights, remedies, and
elections available at law or in equity.

       

      6.11           Further
Assurances.  At any time or
from time to time after the date hereof, the parties agree to cooperate with
each other, and at the request of any other party, to execute and deliver any
further instruments or documents and to take all such further action as the
other party may reasonably request in order to evidence or effectuate the
consummation of the transactions contemplated hereby and to otherwise carry out
the intent of the parties hereunder.

       

      6.12           Costs of
Enforcement.  If any party to
this IR Agreement seeks to enforce its rights under this IR Agreement
by legal proceedings, the non-prevailing party shall pay all costs and expenses
incurred by the prevailing party, including, without limitation, all reasonable
attorneys’ fees.

       

      [signatures
on following page]

      
        
           

        

        
          -20-

          
            

          

        

        
           

        

      

      IN WITNESS WHEREOF, the
parties have executed and caused this IR Agreement to be executed and
delivered on the date first above written.

      

      
        
          
            
              
                
                  
                    
                      
                        
                          
                            	
                                    NCR
      Corporation

                                  
	 
      	 
      	 
      
	
                                    By:

                                  	 
      
	 
      	
                                    Name:

                                  	 
      
	 
      	
                                    Title:

                                  	 
      

                          

                        

                      

                    

                  

                

              

            

          

        

      

      

      
        
          
            
              
                
                  
                    
                      
                        
                          
                            	
                                    Document
      Capture Technologies, Inc.

                                  
	 
      	 
      	 
      
	
                                    By:

                                  	 
      
	 
      	
                                    Name:

                                  	 
      
	 
      	
                                    Title:

                                  	 
      

                          

                        

                      

                    

                  

                

              

            

          

        

      

      

      [Signature
Page to Investor Rights Agreement]

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      EXHIBIT
A

       

      NOTICE
OF EXERCISE

       

      TO:  DOCUMENT
CAPTURE TECHNOLOGIES, INC.

       

      The
undersigned hereby irrevocably exercises the right to purchase _______________
of the shares of Common Stock (the “Common Stock”)
of DOCUMENT CAPTURE TECHNOLOGIES, INC., a Delaware corporation (“Company”), evidenced
by the option granted to the undersigned by Company under Article 4 of that
certain Investor Rights Agreement, dated _______________, 2010, between Company
and NCR Corporation, a Maryland corporation (the “IR Agreement”),
to which this Notice of Exercise is attached (the “Option”), and
herewith makes payment of the Exercise Price with respect to such shares in
full, all in accordance with the conditions and provisions of said
Option.

       

      The
undersigned agrees not to offer, sell, transfer or otherwise dispose of any of
the Common Stock obtained on exercise of the Option, except in accordance with
the provisions of the Transaction Documents (as such term is defined in the
IR Agreement).

       

      The
undersigned requests that any stock certificates for such shares be issued free
of any restrictive legend, if permitted by the terms of the
IR Agreement.

       

      Please
issue a certificate or certificates representing the shares of Common Stock
acquired hereby in the name of the undersigned or in such other name as is
specified below:

       

        
          

        

         

      

      The
shares of Common Stock acquired hereby shall be delivered to the following DWAC
Account Number or by physical delivery of a certificate to:

       

      
        

      

       

      
        

      

       

      
        

      

      
      

       

      The
undersigned is an “accredited investor” as defined in Regulation D promulgated
under the Securities Act of 1933, as amended.

      

      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              	 	[NAME
      OF ENTITY] 
	 	 	 
	 
      	
                                      By:

                                    	 
      
	 
      	 
      	
                                      Name:

                                    	 
      
	 
      	 
      	
                                      Title:

                                    	 
      
	 
      	 
      	
                                      Date:

                                    	 
      

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

      

      [Notice
of Exercise]

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