Document:

Distribution Agreement

 Exhibit 10.1 
 DISTRIBUTION AGREEMENT 
 BY AND BETWEEN 

COMVERSE TECHNOLOGY, INC., 
 AND 
 COMVERSE, INC. 

DATED AS OF OCTOBER 31, 2012 

 TABLE OF CONTENTS 

 

							
	  	 	 	  	Page	 
	
	 ARTICLE I
 DEFINITIONS
	   

  

			
	 Section 1.1
	 	General	  	 	1	  
	 Section 1.2
	 	Reference; Interpretation	  	 	8	  
	
	 ARTICLE II

DISTRIBUTION AND

CERTAIN COVENANTS
	   

  
   

			
	 Section 2.1
	 	Distribution	  	 	9	  
	 Section 2.2
	 	CTI Determinations	  	 	9	  
	 Section 2.3
	 	Charter; Bylaws	  	 	9	  
	 Section 2.4
	 	Directors	  	 	10	  
	 Section 2.5
	 	Election of Officers	  	 	10	  
	 Section 2.6
	 	Certain Licenses and Permits	  	 	10	  
	 Section 2.7
	 	State Securities Laws	  	 	10	  
	 Section 2.8
	 	Listing Application; Notice to FINRA	  	 	10	  
	 Section 2.9
	 	Misallocated Transfers	  	 	10	  
	 Section 2.10
	 	Corporate Names; Trademarks	  	 	11	  
	 Section 2.11
	 	Ancillary Agreements	  	 	11	  
	 Section 2.12
	 	Acknowledgment by Comverse	  	 	11	  
	 Section 2.13
	 	Representations.	  	 	11	  
	 Section 2.14
	 	Release	  	 	12	  
	 Section 2.15
	 	Discharge of Liabilities	  	 	13	  
	 Section 2.16
	 	Further Assurances	  	 	13	  
	
	 ARTICLE III

INDEMNIFICATION
	   
   

			
	 Section 3.1
	 	Indemnification by CTI	  	 	14	  
	 Section 3.2
	 	Indemnification by Comverse	  	 	14	  
	 Section 3.3
	 	Procedures for Indemnification	  	 	14	  
	 Section 3.4
	 	Indemnification Payments	  	 	16	  
	 Section 3.5
	 	Indemnification Rights	  	 	17	  
	 Section 3.6
	 	Appraisal Rights	  	 	17	  
	
	 ARTICLE IV

ACCESS TO INFORMATION
	   
   

			
	 Section 4.1
	 	Provision of Corporate Records	  	 	18	  
	 Section 4.2
	 	Access to Information	  	 	18	  
	 Section 4.3
	 	Witnesses; Documents and Cooperation in Actions	  	 	19	  

  
 i 

							
	  	 	 	  	Page	 
	 Section 4.4
	 	Confidentiality	  	 	19	  
	 Section 4.5
	 	Privileged Matters	  	 	20	  
	 Section 4.6
	 	Ownership of Information	  	 	22	  
	 Section 4.7
	 	Cost of Providing Records and Information	  	 	22	  
	 Section 4.8
	 	Retention of Records	  	 	22	  
	 Section 4.9
	 	Other Agreements Providing for Exchange of Information	  	 	23	  
	 Section 4.10
	 	Policies and Best Practices	  	 	23	  
	 Section 4.11
	 	Compliance with Laws and Agreements	  	 	23	  
	
	 ARTICLE V

MISCELLANEOUS
	   
   

			
	 Section 5.1
	 	Complete Agreement; Construction	  	 	23	  
	 Section 5.2
	 	Ancillary Agreements	  	 	23	  
	 Section 5.3
	 	Counterparts	  	 	23	  
	 Section 5.4
	 	Survival of Agreements	  	 	23	  
	 Section 5.5
	 	Distribution Expenses	  	 	23	  
	 Section 5.6
	 	Notices	  	 	24	  
	 Section 5.7
	 	Waivers	  	 	24	  
	 Section 5.8
	 	Amendments	  	 	24	  
	 Section 5.9
	 	Assignment	  	 	24	  
	 Section 5.10
	 	Successors and Assigns	  	 	24	  
	 Section 5.11
	 	Termination	  	 	25	  
	 Section 5.12
	 	Subsidiaries	  	 	25	  
	 Section 5.13
	 	Third-Party Beneficiaries	  	 	25	  
	 Section 5.14
	 	Title and Headings	  	 	25	  
	 Section 5.15
	 	Schedules	  	 	25	  
	 Section 5.16
	 	Governing Law	  	 	25	  
	 Section 5.17
	 	Waiver of Jury Trial	  	 	25	  
	 Section 5.18
	 	Specific Performance	  	 	25	  
	 Section 5.19
	 	Severability	  	 	26	  
			
	 Schedule A-1
	 	Employee or Former Employee Actions	  	 	A-1	  
	 Schedule A-2
	 	Additional Employee or Former Employee Actions	  	 	A-2	  
	 Schedule B
	 	Overlapping Indemnitees	  	 	B-1	  
	 Schedule C
	 	CTI Marks	  	 	C-1	  

  

  
 ii 

 DISTRIBUTION AGREEMENT 

This Distribution Agreement (this “Agreement”), is dated as of October 31, 2012, by and between Comverse
Technology, Inc., a New York corporation (“CTI”), and Comverse, Inc., a Delaware corporation and a wholly-owned subsidiary of CTI (“Comverse” and, together with CTI, the “Parties”). 

WHEREAS, the Board of Directors of CTI has determined that it is in the best interests of CTI and its shareholders to separate the
Comverse Business from CTI’s other businesses on the terms and conditions set forth herein; 
 WHEREAS, the Board of
Directors of CTI has authorized the distribution to the holders of the issued and outstanding shares of common stock, par value $0.10 per share, of CTI (the “CTI Common Stock”) as of the Distribution Record Date of all the
issued and outstanding shares of common stock, no par value, of Comverse (each such share is individually referred to as a “Comverse Share” and collectively referred to as the “Comverse Common Stock”), respectively,
on the basis of one Comverse Share for every ten shares of CTI Common Stock (the “Distribution”); 
 WHEREAS,
the Boards of Directors of CTI and Comverse have each determined that the Distribution, the other transactions contemplated by this Agreement and the Ancillary Agreements (as defined below) are in the best interests of their respective companies and
shareholders, as applicable, and have approved this Agreement and each of the Ancillary Agreements; and 
 WHEREAS, the Parties
have determined to set forth the principal corporate and other transactions required to effect the Distribution and to set forth other agreements that will govern certain other matters prior to and following the completion of the Distribution.

 NOW, THEREFORE, in consideration of the mutual covenants contained in this Agreement, the parties hereby agree as follows:

 ARTICLE I 
 DEFINITIONS 
 Section 1.1 General. Unless otherwise defined
herein or unless the context otherwise requires, as used in this Agreement, the following terms shall have the following meanings: 
 “Action” shall mean any demand, action, suit, arbitration, inquiry, proceeding, investigation, audit, counter suit, hearing or litigation of any nature whether administrative, civil,
criminal, regulatory or otherwise, by or before any Governmental Authority or any arbitration or mediation tribunal. 

“Affiliate” shall mean, when used with respect to any specified Person, a Person that directly or indirectly controls,
is controlled by, or is under common control with such specified Person. As used herein, “control” means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of such
Person, whether through the ownership of voting securities or other interests, by contract or otherwise. Unless explicitly provided herein to the contrary, for purposes of this Agreement, neither CTI nor Verint or any of its Subsidiaries shall be
deemed to be an Affiliate of Comverse or any of its Subsidiaries, and vice versa. 

  
 1 

 “Agent” shall have the meaning set forth in Section 2.1(a).

 “Agreement” shall have the meaning set forth in the preamble to this Agreement. 

“Ancillary Agreements” shall mean all of the written agreements, instruments, understandings, assignments or other
arrangements (other than this Agreement) entered into by the Parties or any other member of the Comverse Group in connection with the transactions contemplated hereby, including the Transition Services Agreement, the Employee Matters Agreement and
the Tax Disaffiliation Agreement. 
 “Applicable Rate” shall mean the rate of interest per annum announced from
time to time by the Wall Street Journal as the “prime rate” at large U.S. money center banks. 
 “Business
Day” shall mean any day other than a Saturday, Sunday or a day on which commercial banking institutions located in the City of New York are authorized or obligated by Law or executive order to close. 

“Commission” shall mean the United States Securities and Exchange Commission. 

“Comverse” shall have the meaning set forth in the preamble to this Agreement and shall include any successor of
Comverse. 
 “Comverse Business” shall mean the business of Comverse and its Subsidiaries prior to, on and
after the Distribution Date and shall also include as of the date any such business is contributed to the Comverse Group, the businesses of each of CTI Capital Corporation, Exalink Ltd. and Comverse Australasia Pty. Ltd. and each of their
Subsidiaries and the ownership and operation of any Transferred Assets by Comverse and its Subsidiaries, including, to the extent transferred to any member of the Comverse Group, Comverse Holdings, Inc. 

“Comverse Common Stock” shall have the meaning set forth in the recitals to this Agreement. 

“Comverse Group” means Comverse and each Person that is, or may become, a Subsidiary of Comverse immediately after the
Distribution Date. 
 “Comverse Indemnitees” shall mean: 

(a) Comverse and each Affiliate thereof after giving effect to the Distribution; and 

(b) each of the respective Representatives of any of the entities described in the immediately preceding clause (a) and each of the
heirs, executors, successors and assigns of any of such Representatives, except in the case of clauses (a) and (b), the CTI Indemnitees; provided, however, that a Person who was a Representative of Comverse or an Affiliate thereof
and who is identified on Schedule B may be a Comverse Indemnitee in that capacity notwithstanding that such Person may also be a CTI Indemnitee. 

  
 2 

 “Comverse Liabilities” shall mean: 

(a) any and all Liabilities (other than those Taxes that are specifically covered by the Tax Disaffiliation Agreement) that are expressly
contemplated by this Agreement or any Ancillary Agreement (or the schedules hereto or thereto) as Liabilities to be assumed by Comverse or any member of the Comverse Group, and all Liabilities of any member of the Comverse Group under this Agreement
or any of the Ancillary Agreements, in each case, including the schedules hereto and thereto; 
 (b) all Liabilities (other than
those Taxes that are specifically covered by the Tax Disaffiliation Agreement), if and to the extent relating to, arising out of or resulting from: 
 (i) the ownership or operation of the Comverse Business (including any discontinued business or any business which has been sold or transferred), as conducted at any time prior to, on or after the
Distribution Date; 
 (ii) the ownership or operation of any business conducted by Comverse or any Comverse
Subsidiary at any time prior to, on or after the Distribution Date; 
 (iii) any claims or Actions by any
stockholder, equity holder or creditor of CTI in respect of or related to any of this Agreement, the Ancillary Agreements, the Distribution, the Merger Agreement, the Other Transaction Agreements (as such term is defined in the Merger Agreement),
the Merger, the Registration Statement, the Proxy Statement or any of the transactions contemplated hereby or thereby; 
 (iv) any claims or Actions by employees or former employees of the Comverse Group, including but not limited to those, in respect of any stock options, restricted stock or other awards with respect to
equity interests in CTI, and any claims or Actions by employees or former employees of CTI or its other subsidiaries solely in respect of any stock options in CTI that were unable to be exercised or expired as a result of CTI’s previous
extended SEC filing delay including the Actions listed on Schedules A-1 and A-2, excluding in the event of the Merger, any portion of such Liabilities allocable by a decision of a court of competent jurisdiction or settlement agreement
to Verint in respect of options or other equity interests in Verint; 
 (v) any breach or failure to be true and
correct of any of the representations and warranties set forth in Article II of the Merger Agreement, as of the date of the Merger Agreement or as of the Merger Closing Date (except to the extent expressly made as of an earlier date, in which case
the failure of such representation or warranty to be so true and correct will be measured as of such earlier date); 
 (vi) any failure of CTI to perform any of the covenants and agreements of CTI set forth in the Merger Agreement; 

  
 3 

 (vii) any obligations or Liabilities of CTI arising out of or resulting from
(A) the Share Purchase Agreement dated as of August 1, 2012, by and among Fortissimo Capital Fund II (Israel), et al., as purchasers, Starhome B.V., and the other selling shareholders parties thereto and (B) the related side letter
dated as of August 1, 2012, by and among Comverse, Berkeley II LLP, Gemini Israel III L.P., Gemini Partner Investors L.P. and Gemini Partner Investors L.P. and Gemini Israel III Parallel Fund L.P.; or 

(viii) any failure of Comverse or any member of the Comverse Group to perform any covenant or agreement of Comverse or
the Comverse Group set forth in this Agreement or any of the Ancillary Agreements; 
 (c) any Retained Liabilities (as defined
in the Merger Agreement) that are not reflected on or reserved against on the Closing Date Positive Net Worth Statement (as such term is defined in the Merger Agreement); or 
 (d) any Liabilities (as defined in the Merger Agreement) that are Known (as defined in the Merger Agreement) by CTI prior to the Effective Time but are not required to be reflected or reserved against on
a balance sheet of CTI prepared in accordance with GAAP or on the Closing Date Positive Net Worth Statement. 

“Comverse Marks” shall include all names, logos or trademarks of Comverse or its Affiliates and all intellectual
property rights therein and all trademarks and logos comprised of or derivative of any of the foregoing. 
 “Comverse
Share” shall have the meaning set forth in the recitals to this Agreement. 
 “Comverse Subsidiaries”
shall mean all of the Subsidiaries of Comverse. 
 “CTI” shall have the meaning set forth in the preamble to
this Agreement and shall include any successor of CTI, including for U.S. federal tax purposes. 
 “CTI
Business” shall mean the business of acting as a holding company as conducted by CTI and, after the after giving effect to the Distribution, CTI shall operate as a public holding company that serves as a holding company for its equity
interests in Verint and for the purpose of consummating the Transactions (as defined in the Merger Agreement) and CTI’s operations will be limited to compliance with any and all of its legal and contractual obligations, including
(i) obligations under the federal securities laws, the requirements of NASDAQ, this Agreement, the Merger Agreement, the Ancillary Agreements and the Other Transactions Agreements (as defined in the Merger Agreement), and (ii) retaining
the service of employees, advisers or independent contractors, entering into Contracts for services or otherwise, and taking such further action, in each case, as it determines to be necessary or appropriate in furtherance of the foregoing;
provided, however, that for the avoidance of doubt, CTI Business shall not include any business or operations conducted at any time by any Subsidiary or former Subsidiary of CTI or the Comverse Business. 

“CTI Common Stock” shall have the meaning set forth in the recitals to this Agreement. 

“CTI Indemnitee” shall mean: 

  
 4 

 (a) CTI and each Affiliate thereof after giving effect to the Distribution; and 

(b) each of the respective Representatives of any of the entities described in the immediately preceding clause (a) and each of the
heirs, executors, successors and assigns of any of such Representatives, except in the case of clauses (a) and (b), the Comverse Indemnitees; provided, however, that a Person who was a Representative of CTI or an Affiliate thereof
and who is identified on Schedule B may be a CTI Indemnitee in that capacity notwithstanding that such Person may also be a Comverse Indemnitee. 
 “CTI Liabilities” shall mean: 
 (a) any and all Liabilities of
CTI (other than those Taxes that are specifically covered by the Tax Disaffiliation Agreement) that are not expressly assumed by Comverse under this Agreement or any of the Ancillary Agreements; and 

(b) all Liabilities (other than those Taxes that are specifically covered by the Tax Disaffiliation Agreement and Liabilities that are
Comverse Liabilities), if and to the extent relating to, arising out of or resulting from (i) the ownership or operation of the CTI Business as conducted at any time prior to, on or after the Distribution Date or (ii) the ownership or
operation of any business conducted by CTI at any time after the Distribution Date. 
 “CTI Marks” shall mean
Comverse Technology, Inc., Comverse Technology and the logo attached as Schedule C. 
 “Distribution”
shall have the meaning set forth in the recitals to this Agreement. 
 “Distribution Date” shall mean such date
as may be determined by the Board of Directors of CTI or a committee of such Board of Directors, as the date as of which the Distribution shall be effected. 
 “Distribution Record Date” shall mean such date as may be determined by the Board of Directors of CTI or a committee of such Board of Directors, as the record date for the Distribution.

 “Effective Time” shall mean 11:59 p.m., New York City time, on the Distribution Date. 

“Employee Matters Agreement” shall mean the Employee Matters Agreement by and between CTI and Comverse, which agreement
shall be entered into prior to or on the Distribution Date. 
 “Enforceability Exception” shall have the
meaning set forth in Section 2.13(a). 
 “Environmental Laws” shall mean any and all federal,
state, local and foreign statutes, laws, regulations, ordinances, rules, principles of common law, judgments, orders, decrees, permits, concessions, grants, franchises, licenses, agreements or other governmental restrictions (including the
Comprehensive Environmental Response, Compensation and Liability Act, 42 U.S.C. 9601, et. seq.), whether now or hereafter in existence, relating to the environment, natural resources, human health or safety, endangered or threatened
species of fish, wildlife and plants, 

  
 5 

 
or to emissions, discharges or releases of pollutants, contaminants, petroleum or petroleum products, chemicals or industrial, toxic or hazardous substances or wastes into the environment
(including indoor or outdoor air, surface water, groundwater and surface or subsurface soils), or otherwise relating to the manufacture, processing, distribution, use, treatment, storage, disposal, transport or handling of pollutants, contaminants,
petroleum or petroleum products, chemicals or industrial, toxic or hazardous substances or wastes or the investigation, cleanup or other remediation thereof. 
 “Escrow Agreement” shall mean the Escrow Agreement, by and among Comverse, Verint and J.P. Morgan, in its capacity as escrow agent (or such other escrow agent reasonably satisfactory to
each of Comverse, Verint and such escrow agent) (the “Escrow Agreement”), to be entered into as a condition to the consummation of the Transactions (as defined in the Merger Agreement), in a form and substance reasonably
satisfactory to the parties thereto. 
 “Escrow Amount” shall mean twenty five million dollars ($25,000,000).

 “Escrow Fund” shall mean the Escrow Amount deposited with the Escrow Agent and released in accordance with
the terms of this Agreement and the Escrow Agreement. 
 “Exchange Act” shall mean the Securities Exchange Act
of 1934, as amended, together with the rules and regulations promulgated hereunder. 
 “Exercising
Stockholder” shall have the meaning set forth in Section 3.6(a). 
 “Financial
Requirements” shall have the meaning set forth in Section 4.1(c). 
 “FINRA” shall mean
the Financial Investing Regulatory Authority or any successor entity. 
 “Governmental Authority” shall mean
any federal, state, local, foreign or international court, government, department, commission, board, bureau, agency, official or other regulatory, administrative or governmental authority or self-regulatory organization. 

“Indemnifiable Losses” shall mean any and all Liabilities, costs or expenses (including out-of-pocket attorneys’
fees and any and all out-of-pocket expenses) incurred in investigating, preparing for or defending against any Actions or potential Actions or in settling any Action or potential Action or in satisfying any judgment, fine, amount or penalty rendered
in or resulting from any Action. 
 “Indemnifying Party” shall have the meaning set forth in
Section 3.3(a). 
 “Indemnitee” shall have the meaning set forth in Section 3.3(a).

 “Law” shall mean any statute, law, ordinance, regulation, rule, code or other requirement of, or Order
issued by, a Governmental Authority. 
 “Liabilities” shall mean any and all manner of debts, liabilities,
obligations, responsibilities, losses, damages (whether compensatory, punitive or treble), claims, demands, 

  
 6 

 
judgments, settlements, fines, penalties and sanctions, absolute or contingent, matured or unmatured, liquidated or unliquidated, foreseen or unforeseen, joint, several or individual, asserted or
unasserted, accrued or unaccrued, known or unknown, whenever arising, including those arising under or in connection with any Law (including any Environmental Law), Action, threatened Action, order or consent decree of any Governmental Authority or
any award of any arbitration tribunal, and those arising under any contract, guarantee, commitment or undertaking, whether sought to be imposed by a Governmental Authority, private party, or party to this Agreement, whether based in contract, tort,
implied or express warranty, strict liability, criminal or civil statute, or otherwise, and including any costs, expenses, interest, attorneys’ fees, disbursement and expense of counsel, expert and consulting fees and costs related thereto or
to the investigation or defense thereof. 
 “Merger” shall have the meaning ascribed to such term in the Merger
Agreement. 
 “Merger Agreement” shall mean the Agreement and Plan of Merger by and among CTI, Victory and
Victory Acquisition I LLC, dated as of August 12, 2012. 
 “Merger Closing Date” shall mean the Closing
Date (as such term is defined in the Merger Agreement). 
 “NASDAQ” shall mean The NASDAQ Stock Market LLC.

 “Order” means any orders, judgments, injunctions, awards, decrees, writs or other legally enforceable
requirement handed down, adopted or imposed by, including any consent decree, settlement agreement or similar written agreement with, any Governmental Authority. 
 “Parties” shall have the meaning set forth in the preamble to this Agreement. 
 “Person” shall mean any natural person, corporation, business trust, limited liability company, joint venture, association, company, partnership or government, or any agency or political
subdivision thereof. 
 “Proxy Statement” shall mean the Proxy Statement filed by CTI with the Commission and
mailed to the holders of shares of CTI Common Stock in connection with the Distribution, including any amendments or supplements thereto. 
 “Records” shall have the meaning set forth in Section 4.1(a). 
 “Registration Statement” shall mean the registration statement on Form 10 filed with the Commission to effect the registration of the Comverse Shares pursuant to the Exchange Act.

 “Releasee” shall have the meaning set forth in Section 2.13. 

“Releasor” shall have the meaning set forth in Section 2.13. 

“Representative” shall mean, with respect to any Person, any of such Person’s directors, officers, employees,
agents, consultants, advisors, accountants, attorneys and representatives. 

  
 7 

 “Subsidiary” shall mean with respect to any specified Person, any
corporation or other legal entity of which such Person or any of its Subsidiaries controls or owns, directly or indirectly, more than 50% of the stock or other equity interests entitled to vote on the election of members to the board of
directors or similar governing body or, in the case of a Person with no governing body, more than 50% of the equity or voting interests. 
 “Tax” shall have the meaning set forth in the Tax Disaffiliation Agreement. 
 “Tax Disaffiliation Agreement” shall mean the Tax Disaffiliation Agreement by and between CTI and Comverse, which agreement shall be entered into prior to or on the Distribution Date.

 “Third Party” shall mean any Person who is not a Party to this Agreement. 

“Third-Party Claim” shall have the meaning set forth in Section 3.3(a). 

“Transferred Assets” shall mean substantially all of the assets of CTI prior to the Distribution Date that will be
transferred or assigned (whether directly or indirectly) from CTI to Comverse, other than the Verint shares owned by CTI, Retained Assets reflected on the Closing Date Positive Net Worth Statement (as defined in the Merger Agreement), Comverse
Holdings, Inc., insurance policies, prepaid expenses, any and all CTI corporate, financial, tax and accounting records, including all supporting documentation and tax returns of CTI, whether held by any member of the Comverse Group or CTI and any
other assets exclusively relating to the CTI Business that would reasonably be expected to be retained by a holding company. 

“Transition Services Agreement” shall mean the Transition Services Agreement by and between CTI and Comverse, which
agreement shall be entered into prior to or on the Distribution Date. 
 “Verint” shall mean Verint Systems
Inc. 
 Section 1.2 Reference; Interpretation. References in this Agreement to any gender include references to all
genders, and references to the singular include references to the plural and vice versa. The words “include,” “includes” and “including” when used in this Agreement shall be deemed to be followed by
the phrase “without limitation.” Unless the context otherwise requires, references in this Agreement to Articles, Sections and Schedules shall be deemed to be references to Articles and Sections of, and Schedules to, this Agreement.
Unless the context otherwise requires, the words “hereof”, “hereby” and “herein” and words of similar meaning when used in this Agreement refer to this Agreement in its entirety and not to any
particular Article, Section or provision of this Agreement. Neither this Agreement nor any Ancillary Agreement shall be construed against either Party as the principal draftsperson hereof or thereof. 

  
 8 

 ARTICLE II 
 DISTRIBUTION AND 
 CERTAIN COVENANTS 

Section 2.1 Distribution. 
 (a) On or prior to the Distribution Date, CTI shall deliver to CTI’s stock transfer agent (the “Agent”) a single stock certificate representing all of the issued and outstanding
Comverse Shares, in each case, endorsed by CTI in blank, for the benefit of the holders of CTI Common Stock, and CTI shall instruct the Agent to distribute, on or as soon as practicable following the Distribution Date, such number of the Comverse
Shares to holders of record of shares of CTI Common Stock on the Distribution Record Date, all as further contemplated by the Proxy Statement and hereby. Comverse shall provide any share certificates that the Agent shall require in order to effect
the Distribution. The Distribution shall be effective at the Effective Time. 
 (b) The Comverse Common Stock issued in the
Distribution is intended to be distributed only pursuant to a book entry system. CTI shall instruct the Agent to deliver the Comverse Common Stock previously delivered to the Agent to a depositary and to mail to each holder of record of CTI Common
Stock on the Distribution Record Date, a statement of the Comverse Common Stock credited to such holder’s account. If following the Distribution a holder of Comverse Common Stock requests physical certificates instead of participating in the
book entry system, the Agent shall issue certificates for such shares. In lieu of fractional shares, cash shall be given to holders otherwise entitled to such fractional shares of Comverse Common Stock on the Distribution Date. As soon as
practicable following the Distribution Date, and in no case later than 30 Business Days after the Distribution Date, the Agent shall aggregate all fractional Comverse Shares into whole Comverse Shares and sell the whole Comverse Shares in the open
market at then prevailing prices and shall distribute to each such holder such holder’s ratable share of the proceeds of such sale, net of brokerage fees incurred in such sales. 

Section 2.2 CTI Determinations. CTI shall have the sole and absolute discretion to determine whether to proceed with all or
part of the Distribution and all terms thereof, including the form, structure and terms of any transaction(s) and/or offering(s) to effect the Distribution and the timing of and conditions to the consummation of the Distribution. Comverse shall
cooperate with CTI in all respects to accomplish the Distribution and shall, at CTI’s direction, promptly take any and all actions necessary or desirable to effect the Distribution. CTI shall select any investment banker(s), underwriters and
manager(s) in connection with the Distribution, as well as any financial printer, solicitation and/or exchange agent and outside counsel for CTI. Comverse acknowledges that it has been afforded the opportunity to seek the advice and assistance of
its own separate counsel in connection with the Distribution and the negotiation and preparation of this Agreement and the Ancillary Agreements. 
 Section 2.3 Charter; Bylaws. On or prior to the Distribution Date, Comverse and CTI shall take all necessary actions to provide for the adoption of the form of Certificate of Incorporation and
Bylaws in substantially the form filed by Comverse with the Commission as exhibits to the Registration Statement. 

  
 9 

 Section 2.4 Directors. On or prior to the Distribution Date, CTI and Comverse
shall take all necessary action to cause the Board of Directors of Comverse to consist of the individuals identified in the Proxy Statement as directors of Comverse as of immediately following the Effective Time. 

Section 2.5 Election of Officers. On or prior to the Distribution Date, Comverse shall take all actions necessary and
desirable so that as of the Distribution Date the officers of Comverse will be as set forth in the Proxy Statement. 

Section 2.6 Certain Licenses and Permits. On or prior to the Distribution Date or as soon as reasonably practicable
thereafter, CTI shall use its commercially reasonable efforts to transfer or cause to be transferred any transferable licenses, permits and authorizations issued by any Governmental Authority which relate to the Comverse Business but which are held
in the name of CTI, or in the name of any employee, officer, director, shareholder or agent of any such member, or otherwise, on behalf of a member of the Comverse Group to the appropriate member of the Comverse Group. 

Section 2.7 State Securities Laws. Prior to the Distribution Date, CTI and Comverse shall take all such action as may be
necessary or appropriate under the securities or blue sky laws of states or other political subdivisions of the United States of America in order to effect the Distribution. 
 Section 2.8 Listing Application; Notice to FINRA. 
 (a) Prior to the
Distribution Date, CTI and Comverse shall prepare and file with NASDAQ a listing application and related documents and shall take all such other actions with respect thereto as shall be necessary or desirable in order to cause NASDAQ to list on or
prior to the Distribution Date, subject to official notice of issuance, the Comverse Shares. 
 (b) Prior to the Distribution,
CTI shall, to the extent possible, give FINRA not less than 10 days’ advance notice of the Distribution Record Date in compliance with Rule 10b-17 under the Exchange Act. 

Section 2.9 Misallocated Transfers. In the event that, at any time from and after the Distribution Date, either Party (or any
member of the Comverse Group) discovers that it or any of its Affiliates is the owner of, receives or otherwise comes to possess any asset (including the receipt of payments made pursuant to contracts and proceeds from accounts receivable with
respect to the period on or prior to the Distribution Date) or is liable for any Liability that is attributable to any person that is an Affiliate of the other Party pursuant to this Agreement or any Ancillary Agreement, such Party will promptly
convey, or cause to be conveyed such asset or Liability to the Person so entitled thereto or responsible therefor (and the relevant Party will cause such entitled Person to accept such asset or assume such Liability). In addition, in the event that
after the Effective Time (as defined in the Merger Agreement), Verint or its Affiliates receive any refund or use any credit in respect of an expense prepaid by Comverse, Verint or such Subsidiary prior to the Effective Time, Verint shall promptly
pay such amount thereof to Comverse, provided that Verint will have the opportunity to offset any such amount against any other amounts due and owing to any member of the Comverse Group. 

  
 10 

 Section 2.10 Corporate Names; Trademarks. The parties acknowledge that, prior to
the Distribution Date, CTI will have transferred to Comverse the Comverse Marks but will be granted the perpetual right to use the CTI Marks prior to, on and after the Distribution Date. 

Section 2.11 Ancillary Agreements. On or prior to the Distribution Date, each of CTI and Comverse shall (and, as applicable
in the case of Comverse, cause members of the Comverse Group to) enter into, the Ancillary Agreements and any other agreements in respect of the Distribution reasonably necessary or appropriate in connection with the transactions contemplated hereby
and thereby, including with respect to the transfer and assignment of the Transferred Assets from CTI to Comverse. 

Section 2.12 Acknowledgment by Comverse. Comverse, on behalf of itself and all members of the Comverse Group, acknowledges,
understands and agrees that, except as expressly set forth herein or in any Ancillary Agreement, (a) none of CTI or any other Person has, in this Agreement or in any other agreement or document, or otherwise made any representation or warranty
of any kind whatsoever, express or implied, to Comverse or any member of the Comverse Group or to any director, officer, employee or agent thereof in any way with respect to any of the transactions contemplated hereby or the business, assets,
condition or prospects (financial or otherwise) of, or any other matter involving, the assets, Liabilities or businesses of CTI, Comverse or any member of the Comverse Group, any Transferred Assets, any Comverse Liabilities or the Comverse Business,
(b) Comverse and each member of the Comverse Group has taken the Transferred Assets, the Comverse Business and Comverse Liabilities on an “as is, where is” basis, and all implied warranties of merchantability, fitness for a specific
purpose or otherwise have been and are hereby expressly disclaimed and (c) none of CTI or any other person has made or makes any representation or warranty with respect to the Distribution or the entering into of this Agreement or the Ancillary
Agreements or the transactions contemplated hereby and thereby. Except as expressly set forth herein or in any other Ancillary Agreement, Comverse and each member of the Comverse Group shall bear the economic and legal risk that the Transferred
Assets shall prove to be insufficient or that the title of any member of the Comverse Group to any Transferred Assets shall be other than good and marketable and free from encumbrances. The provisions of any related assignment agreement or other
related documents are expressly subject to this Section 2.12 and to Section 2.13. 
 Section 2.13
Representations. 
 (a) CTI has all necessary corporate power and authority to execute and deliver this Agreement and to
perform its obligations hereunder. The execution and delivery of this Agreement and the consummation of the transactions contemplated hereby have been duly authorized by all necessary action on the part of CTI, and no other corporate proceedings on
the part of CTI are necessary to authorize the execution and delivery of this Agreement. This Agreement has been duly executed and delivered by CTI and is a valid and binding obligation of CTI, enforceable against CTI in accordance with its terms,
subject to applicable bankruptcy, insolvency, reorganization and similar laws affecting the enforcement of creditors’ rights generally and by general equitable principles (such exception, the “Enforceability Exception”).

  
 11 

 (b) Comverse has all necessary corporate power and authority to execute and deliver this
Agreement and to perform its obligations hereunder. The execution and delivery of this Agreement and the consummation of the transactions contemplated hereby have been duly authorized by all necessary action on the part of Comverse, and no other
corporate proceedings on the part of Comverse are necessary to authorize the execution and delivery of this Agreement. This Agreement has been duly executed and delivered by Comverse and is a valid and binding obligation of Comverse, enforceable
against Comverse in accordance with its terms, subject to the Enforceability Exception. 
 Section 2.14 Release.
Comverse agrees that for itself and for its current, former and future predecessors, Subsidiaries (including for this purpose any Subsidiary of Comverse that is also a Subsidiary of CTI), departments, divisions and sections and for their successors,
Affiliates (including for this purpose any Subsidiary of Comverse that is also a Subsidiary of CTI), heirs, assigns, executors, administrators, Representatives, partners, members and shareholders, (individually, each a “Releasor”
and collectively, the “Releasors”), in consideration for the transfer of the Transferred Assets, that, effective as of the Effective Time, it shall, through no further act of such Releasor, release, waive and completely and forever
discharge CTI and its current, former and future predecessors, Subsidiaries, departments, divisions, sections, successors (including, in the event of the Merger, Victory Acquisition I LLC), Affiliates, heirs, assigns, executors, administrators,
Representatives, partners and shareholders (individually, each a “Releasee” and collectively, the “Releasees”) from, and shall, in addition to other obligations under Article III, indemnify and hold
harmless all such Releasees against and from, all Liabilities of every name and nature, in law or equity, known or unknown, which against any Releasee, a Releasor ever had, now has or hereafter can, shall or may have by reason of any matter, act,
omission, conduct, transaction or occurrence from the beginning of the world up to and including the Distribution Date for, upon, by reason of, asserted in or arising out of, or related to: 

(a) The management of the business and affairs of Comverse (and its predecessors, Subsidiaries and Affiliates) and the Comverse Business
on or prior to the Distribution Date; 
 (b) The terms of this Agreement, the Ancillary Agreements, the Distribution, the
Certificate of Incorporation or the Bylaws of Comverse; and 
 (c) Any other decision that may have been made, or any action
taken, relating to Comverse (and its predecessors, subsidiaries and Affiliates) or the Distribution. 
 The term “Releasee” is
expressly intended to include any person who served as an incorporator, director, officer, employee, agent or attorney of Comverse on or prior to the Distribution Date at the request of CTI. Each Releasor expressly covenants and agrees never to
institute, or participate (including as a member of a class) in, any Action against any Releasee, in any court or forum, directly or indirectly, regarding or relating to the matters released through this Release, and further covenants and agrees
that this Release is a bar to any such Action. For the avoidance of doubt, the purpose of this Section 2.14 is to make clear the intent of the Parties that, following the Distribution Date, the only Liability that any Releasee shall have
to any Releasor shall be its obligation to perform its obligations under and pursuant to the terms of this Agreement, the Ancillary Agreements and there shall be no Liability in respect of any event, occurrence, action or inaction on or prior to the
Distribution Date. This Release shall not extend to any Liabilities owed by a Releasee to a Releasor in the Releasor’s capacity as a director, officer, employee or other Representative or shareholder of Releasee nor shall it release any
Liabilities or obligations under this Agreement or any Ancillary Agreements. 

  
 12 

 Releasors understand and acknowledge that there may be Liabilities that Releasors do not know or suspect
exist in their favor at this time as against any Releasee, including without limitation those which, if known, might have affected the decision to enter into this Agreement. With respect to any and all of the matters released through this Release,
the Releasors expressly waive, relinquish and release any and all provisions, rights and benefits conferred by or under Cal. Civ. Code § 1542 or any law of the United States or any state of the United States or territory of the United
States, or principle of common law, which governs or limits a person’s release of unknown claims and/or is similar, comparable or equivalent to Cal. Civ. Code § 1542, which provides: 

A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT EXIST IN HIS OR HER FAVOR AT THE TIME OF
EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM OR HER MUST HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR. 
 Releasors
acknowledge that they may discover facts in addition to or different from those now known or believed to be true with respect to the matters released through this Release, but that it is the intention of Releasors to completely, fully, finally and
forever extinguish any and all Liabilities known or unknown, suspected or unsuspected, which now exist, or heretofore existed, or may hereafter exist, and without regard to the subsequent discovery of additional or different facts. 

Section 2.15 Discharge of Liabilities. Except as otherwise expressly provided herein or in any of the Ancillary Agreements,
all intercompany trade, accounts receivable and accounts payable between any CTI and any member of the Comverse Group in existence immediately prior to the Effective Time shall be repaid, redeemed, settled, released or cancelled as of the Effective
Time. 
 Section 2.16 Further Assurances. If at any time after the Effective Time any further action is reasonably
necessary or desirable to carry out the purposes of this Agreement and the Ancillary Agreements, the proper officers of each Party shall take all such necessary action and do and perform all such acts and things, and execute and deliver all such
agreements, assurances to the extent reasonably requested to do so by the other Party, each Party agrees to execute and deliver such documents, in a form reasonably satisfactory to such Party, as may be reasonably necessary to evidence the
assumption of any Liabilities hereunder. Without limiting the foregoing, each Party shall use its commercially reasonable efforts promptly to obtain all consents and approvals, to enter into all agreements and to make all filings and applications
that may be required for the consummation of the transactions contemplated by this Agreement and the Ancillary Agreements, including all applicable filings with, and approvals from, any Governmental Authority. 

  
 13 

 ARTICLE III 
 INDEMNIFICATION 
 Section 3.1 Indemnification by CTI. From and after the
Distribution Date, CTI shall indemnify, defend and hold harmless the Comverse Indemnitees from and against any and all Indemnifiable Losses of the Comverse Indemnitees to the extent arising out of, by reason of or otherwise in connection with
(a) the CTI Liabilities, including any breach by CTI of any provision of this Section 3.1 and (b) any breach by CTI of this Agreement. This Agreement is not intended to address, and should not be interpreted to address, the
matters specifically and expressly covered by the Ancillary Agreements unless such Ancillary Agreement expressly provides that this Agreement applies to any matter in such Ancillary Agreement. 

Section 3.2 Indemnification by Comverse. From and after the Distribution Date, Comverse shall indemnify, defend and hold harmless the CTI
Indemnitees from and against any and all Indemnifiable Losses of the CTI Indemnitees to the extent arising out of, by reason of or otherwise in connection with (a) the Comverse Liabilities, including any breach by any member of the Comverse
Group of any provision of this Section 3.2 and (b) any breach by any member of the Comverse Group of this Agreement. This Agreement is not intended to address, and should not be interpreted to address, the matters specifically and
expressly covered by the Ancillary Agreements unless such agreement expressly provides that this Agreement applies to any matter in such agreement. Notwithstanding anything in this Agreement to the contrary, the aggregate amount payable by Comverse
to the CTI Indemnitees for Indemnifiable Losses arising out of, by reason of or otherwise in connection with clauses (b)(v), (b)(vi) or (d) under the definition of “Comverse Liabilities” in Section 1.1
will not exceed $25,000,000; provided, further, with respect to clause (b)(v) of the definition of “Comverse Liabilities” in Section 1.1, in the case of any representation or warranty set forth in Article
II of the Merger Agreement that is limited by materiality, Chucktaylor MAE, Chuck MAE or any similar term or limitation the amount of Indemnifiable Losses will be determined as if such materiality, Chucktaylor MAE, Chuck MAE or any similar term or
limitation were not included therein. 
 Section 3.3 Procedures for Indemnification. 

(a) (i) If a claim or demand is made by a Third Party against a Comverse Indemnitee or a CTI Indemnitee (each, an
“Indemnitee”) (a “Third-Party Claim”) as to which such Indemnitee is entitled to indemnification pursuant to this Agreement, such Indemnitee shall notify the Party which is or may be required pursuant to
Section 3.1 or Section 3.2 hereof to make such indemnification (the “Indemnifying Party”) in writing, and in reasonable detail, of the Third-Party Claim promptly; provided, however, that failure
to give such notification shall not affect the indemnification provided hereunder except to the extent the Indemnifying Party shall have been actually and materially prejudiced as a result of such failure. 

(ii) Thereafter, the Indemnitee shall deliver to the Indemnifying Party, promptly, copies of all notices and documents
(including court papers) received by the Indemnitee relating to the Third-Party Claim. Notice under this Section 3.3 shall be provided in accordance with Section 5.6. For the avoidance of doubt, knowledge of a Third-Party
Claim by a Person who is an officer or director of both CTI and Comverse shall not constitute notice for purposes of this Section 3.3. 

  
 14 

 (iii) If a Third-Party Claim is made against an Indemnitee, the Indemnifying Party shall be
entitled to participate in the defense thereof and, if it so chooses, to assume the defense thereof with counsel selected by the Indemnifying Party; provided, however, that such counsel is not reasonably objected to by the Indemnitee.
Should the Indemnifying Party so elect to assume the defense of a Third-Party Claim, the Indemnifying Party shall, within 30 days (or sooner if the nature of the Third-Party Claim so requires), notify the Indemnitee of its intent to do so,
and the Indemnifying Party shall thereafter not be liable to the Indemnitee for legal or other expenses subsequently incurred by the Indemnitee in connection with the defense thereof; provided, however, that such Indemnitee shall have
the right to employ counsel to represent such Indemnitee if, in such Indemnitee’s reasonable judgment, (A) a conflict of interest between such Indemnitee and such Indemnifying Party exists in respect of such claim which would make
representation of both such parties by one counsel inappropriate or (B) the Third-Party Claim involves substantially different defenses for the Indemnifying Party and the Indemnified Party, and in such event the fees and expenses of such single
separate counsel shall be paid by such Indemnifying Party; provided, however, that in all events the out-of-pocket costs and expenses (including attorneys’ fees and expenses) of each Indemnitee in connection with discovery or any
appearance in any proceeding will remain the Indemnifying Party’s sole responsibility. If the Indemnifying Party assumes such defense, the Indemnitee shall have the right to participate in the defense thereof and to employ counsel, subject to
the first proviso of the preceding sentence, at its own expense, separate from the counsel employed by the Indemnifying Party, it being understood that the Indemnifying Party shall control such defense. The Indemnifying Party shall be liable for the
fees and expenses of counsel employed by the Indemnitee for any period during which the Indemnifying Party has failed to assume the defense thereof; provided, however, that the Indemnifying Party’s right to defend, negotiate,
settle or otherwise deal with any Third-Party Claim hereunder will be deemed to have been waived by the Indemnifying Party if the Indemnifying Party breaches any of its indemnification and related obligations under this Agreement and such Indemnitee
is actually and materially prejudiced as a result of such breach. 
 (iv) If the Indemnifying Party shall have assumed the
defense of a Third-Party Claim, in no event will the Indemnitee admit any liability with respect to, or settle, compromise or discharge, any Third-Party Claim without the Indemnifying Party’s prior written consent; provided,
however, that the Indemnitee shall have the right to settle, compromise or discharge such Third-Party Claim without the consent of the Indemnifying Party if the Indemnitee unconditionally releases the Indemnifying Party from its
indemnification obligation hereunder with respect to such Third-Party Claim and such settlement, compromise or discharge would not otherwise adversely affect the Indemnifying Party and does not include a statement or admission of fault, culpability
or failure to act by or on behalf of any Indemnifying Party. The Indemnitee will agree to any settlement, compromise or discharge of a Third-Party Claim that the Indemnifying Party may recommend and that by its terms obligates the Indemnifying Party
to pay the full amount of the Liability in connection with such Third-Party Claim, unconditionally releases each Indemnitee completely in connection with such Third-Party Claim, that would not otherwise adversely affect any Indemnitee and does not
include a statement or admission of fault, culpability or failure to act by or on behalf of any Indemnitee. If an Indemnifying Party elects not to assume the defense of a Third-Party Claim, or fails to notify an Indemnitee of its

  
 15 

 
election to do so as provided herein, such Indemnitee may compromise, settle or defend such Third-Party Claim; provided that the Indemnitee shall not compromise or settle such Third-Party
Claim without the consent of the Indemnifying Party, which consent is not to be unreasonably withheld. 
 (v) Notwithstanding
the foregoing, the Indemnifying Party shall not be entitled to assume the defense of any Third-Party Claim (and shall be liable for the fees and expenses of counsel incurred by the Indemnitee in defending such Third-Party Claim) (a) if the
Third-Party Claim seeks an order, injunction or other equitable relief or relief for other than money damages against the Indemnitee which the Indemnitee reasonably determines, after conferring with its counsel, cannot be separated from any related
claim for money damages; provided, however, if such equitable relief or other relief portion of the Third-Party Claim can be so separated from that for money damages, the Indemnifying Party shall be entitled to assume the defense of
the portion relating to money damages, or (b) involving alleged criminal liability of CTI or any directors, officers or employees thereof. 
 (b) In the event of payment by an Indemnifying Party to any Indemnitee in connection with any Third-Party Claim, such Indemnifying Party shall be subrogated to and shall stand in the place of such
Indemnitee as to any events or circumstances in respect of which such Indemnitee may have any right or claim directly relating to such Third-Party Claim against any claimant or plaintiff asserting such Third-Party Claim. Such Indemnitee shall
cooperate with such Indemnifying Party in a reasonable manner, and at the cost and expense of such Indemnifying Party, in prosecuting any subrogated right or claim. 
 Section 3.4 Indemnification Payments. 
 (a) On the Merger Closing
Date, CTI shall deliver or cause to be delivered cash in an amount equal to the Escrow Amount to the Escrow Agent, which shall be pursuant to the provisions of the Escrow Agreement. The Escrow Amount shall be deposited into the Escrow Fund and
provide Verint, subject to the terms and conditions as set forth in the Escrow Agreement, with recourse against, and a security interest in, the amounts held in escrow by the Escrow Agent with respect to the Indemnifying Parties’
indemnification obligations under Section 3.2 for Indemnifiable Losses of the CTI Indemnitees. The Escrow Amount (or any portion thereof) shall be distributed to the Indemnifying Party and/or the Indemnitee at the times, and upon the
terms and conditions, set forth in the Escrow Agreement. From and after the Merger Closing Date, the indemnification obligations under Section 3.2 for Indemnifiable Losses of the CTI Indemnitees, other than Indemnifiable Losses for any
Action listed on Schedule A-1, shall first be satisfied from the Escrow Amount. Indemnifiable Losses for any Action listed on Schedule A-1, and all other Indemnifiable Losses after the Escrow Amount is exhausted shall be satisfied
through direct recourse against the Indemnifying Parties, subject to the limitations set forth in Section 3.2. 

(b) Except as otherwise provided for in the Escrow Agreement, Indemnification required by this Article III shall be made by
periodic payments of the amount thereof during the course of the investigation or defense, as and when bills are received or an Indemnifiable Loss is incurred by wire transfer of immediately available funds. To the extent not covered by the Escrow
Agreement, if the Indemnifying Party fails to make an indemnification payment required 

  
 16 

 
by this Article III within 20 Business Days after receipt of a bill therefore or notice that an Indemnifiable Loss has been incurred, the Indemnifying Party shall also be
required to pay interest on the amount of such indemnification payment, from the date of receipt of the bill or notice of the Indemnified Loss to but not including the date of payment, at the Applicable Rate. 

(c) The amount of any claim by an Indemnitee under this Agreement shall be reduced to reflect any insurance proceeds actually
received (net of costs or any mandatory premium increases) by any Indemnitee that result from the Indemnifiable Losses that gave rise to such indemnity. Notwithstanding the foregoing, no Indemnitee will be obligated to seek recovery for any
Indemnifiable Losses from any Third Party before seeking indemnification under this Agreement and in no event will an Indemnifying Party’s obligation to indemnify and hold harmless any Indemnitee pursuant to this Agreement be conditioned upon
the status of the recovery of any offsetting amounts from any such Third Party. 
 (d) For all applicable income Tax purposes,
the Parties hereto shall treat any payment made by one Party to the other Party pursuant to this Article III as a capital contribution by CTI to Comverse or a distribution by Comverse to CTI, as the case may be, immediately prior to the
Distribution, except as otherwise mandated by applicable Law. 
 Section 3.5 Indemnification Rights. The sole and exclusive remedy
of a Party with respect to any and all claims relating to this Agreement or the transactions contemplated by this Agreement (other than claims of, or causes of action arising from, knowing and intentional fraud and except for seeking specific
performance or other equitable relief to require a Party to perform its obligations under this Agreement to the extent permitted hereunder and thereunder and except as otherwise provided herein or in any Ancillary Agreement) will be pursuant to the
indemnification provisions set forth in this Article III, the Escrow Agreement or any other Ancillary Agreement. The rights and obligations of each Party and any Indemnitee hereunder shall survive the distribution, sale or transfer by any
Party of any assets or the delegation or assignment by it of any Liabilities and shall remain operative and in full force and effect regardless of any investigation made by or on behalf of any Indemnitee, the knowledge by the Indemnitee of
Liabilities for which it might be entitled to indemnification hereunder and any termination of this Agreement. 

Section 3.6 Appraisal Rights. 
 (a) Comverse shall indemnify, defend and hold harmless the CTI Indemnitees from and against any and all Indemnifiable Losses of the CTI Indemnitees to the extent arising out of, by reason of or otherwise
in connection with the exercise of appraisal rights by any stockholder of CTI (each such stockholder, an “Exercising Stockholder”) with respect to the Distribution. 

(b) CTI shall contribute to Comverse all shares of Comverse Common Stock that would have been distributed to each Exercising Stockholder
but for such Exercising Stockholder’s exercise of its appraisal rights. 

  
 17 

 ARTICLE IV 
 ACCESS TO INFORMATION 
 Section 4.1 Provision of Corporate
Records. 
 (a) At all times from and after the Distribution Date, upon the prior written request by Comverse for
agreements, documents, books, records or files including accounting, tax and financial records (collectively, “Records”) which relate to Comverse or its current or former Subsidiaries or the conduct of the Comverse Business up to
the Effective Time, or which Comverse determines are necessary or advisable (i) in order for Comverse to prepare its financial statements, (ii) for use in any Action or in order to satisfy audit, accounting, claims, regulatory, litigation
or other similar legal or regulatory requirements, or (iii) to comply with reporting, disclosure, filing or other requirements imposed on Comverse or its Affiliates (including under applicable securities and tax laws) by a Governmental
Authority, CTI shall arrange, as soon as reasonably practicable following the receipt of such request, to promptly provide, at the sole cost and expense of CTI, appropriate copies of such Records (or the originals thereof if Comverse has a
reasonable need for such originals) in the possession or control of CTI, but only to the extent such items are not already in the possession or control of Comverse. 
 (b) At all times from and after the Distribution Date, upon the prior written request by CTI for Records which relate to CTI or its current or former Subsidiaries or Affiliates (including for this purpose
Comverse and its Subsidiaries) or the conduct of the CTI Business up to the Effective Time, or which CTI determines are necessary or advisable (i) in order for CTI to prepare its financial statements, (ii) for use in any Action or in order
to satisfy audit, accounting, claims, regulatory, litigation or other similar legal or regulatory requirements, or (iii) to comply with reporting, disclosure, filing or other requirements imposed on CTI or its Affiliates (including under
applicable securities and tax laws) by a Governmental Authority, Comverse shall arrange, as soon as reasonably practicable following the receipt of such request, to promptly provide, at the sole cost and expense of Comverse, appropriate copies of
such Records (or the originals thereof if CTI has a reasonable need for such originals) in the possession or control of Comverse or any of the Comverse Subsidiaries, but only to the extent such items are not already in the possession or control of
CTI. 
 (c) Without limiting the generality of the foregoing, Comverse shall use reasonable best efforts to cooperate with
CTI’s information requests to enable any (i) of CTI or its Affiliates to meet its timetable for dissemination of its earnings releases, financial statements, periodic reports and management’s assessment of the effectiveness of its
disclosure controls and procedures and its internal control over financial reporting in accordance with Items 307 and 308, respectively, of Regulation S-K, and (ii) accountants of CTI or its Affiliates to timely complete their review of
quarterly financial statements of CTI or its Affiliates and audit of the annual financial statements of CTI or its Affiliates, including, to the extent applicable, its auditor’s audit of its internal control over financial reporting and
management’s assessment thereof in accordance with Section 404 of the Sarbanes-Oxley Act of 2002 and the SEC’s and Public Company Accounting Oversight Board’s rules and auditing standards thereunder, in each of clause
(i) and (ii), with respect to the end of any fiscal quarter or year or portion thereof (collectively, the “Financial Requirements”). 
 Section 4.2 Access to Information. 
 (a) At all times from and after
the Distribution Date, each of CTI and Comverse shall afford to the other and its authorized Representatives reasonable access during normal business hours, subject to appropriate restrictions for classified, privileged or confidential information,
to 

  
 18 

 
the Representatives, properties, and Records of, in the possession of or in the control of the non-requesting Party and its Subsidiaries insofar as such access is reasonably required by the
requesting Party and relates to such requesting Party or the conduct of its business prior to the Effective Time or, if the event of the Merger, the Merger Closing Date, or the ability of the requesting Party to satisfy its legal obligations or
Financial Requirements after the Effective Time. 
 (b) Without limiting the generality of the foregoing, at all times from and
after the Distribution Date, Comverse shall use commercially reasonable efforts to make available to CTI, upon reasonable written request, its and its Subsidiaries’ former and then current Representatives, to the extent that such Persons may
reasonably be required in connection with the Financial Requirements. 
 Section 4.3 Witnesses; Documents and
Cooperation in Actions. 
 (a) At all times from and after the Distribution Date, each of CTI and Comverse shall use their
commercially reasonable efforts to make available to the other, upon reasonable written request, its and its Subsidiaries’ former and then current Representatives as witnesses and any Records within its control or which it otherwise has the
ability to make available, to the extent that such Persons or Records may reasonably be required in connection with the prosecution, evaluation, pursuit, settlement, compromise or defense of any Action, including any Third-Party Claim, in which the
requesting Party may from time to time be involved. This provision shall not apply to any Action brought by one Party against another Party (as to which production of documents and witnesses shall be governed by applicable discovery rules).

 (b) Without limiting any provision of this Section 4.3, the Parties shall cooperate and consult, and Comverse
shall cause each member of the Comverse Group to cooperate and consult, to the extent reasonably necessary, with respect to any Actions, including any Third-Party Claim. 
 (c) In connection with any matter contemplated by this Section 4.3, the Parties will enter into a mutually acceptable joint defense agreement so as to maintain to the extent practicable any
applicable attorney-client privilege or work product immunity of CTI and any member of the Comverse Group. 
 (d) The obligation
of the Parties to provide witnesses pursuant to this Section 4.3 is intended to be interpreted in a manner so as to facilitate cooperation and will include the obligation to provide as witnesses inventors and other Representatives
without regard to whether the witness or the employer of the witness could assert a possible business conflict. 

Section 4.4 Confidentiality. 
 (a) CTI on the one hand, and Comverse and the Comverse Subsidiaries on the other hand, shall not use or permit the use of and shall keep, and shall cause their respective Representatives to keep,
confidential all information concerning the other Party in their possession, their custody or under their control to the extent such information, (i) relates to or was acquired during the period up to the Effective Time, (ii) relates to
any Ancillary Agreement, (iii) is obtained in the course of performing services for the other Party pursuant to any Ancillary 

  
 19 

 
Agreement, or (iv) is based upon or is derived from information described in the preceding clauses (i), (ii), or (iii), and each Party shall not (without the prior written consent
of the other) otherwise release or disclose such information to any other Person, except such Party’s auditors, attorneys, consultants and advisors, subject to Section 4.4(b). Each Party shall be deemed to have satisfied its
obligation to hold confidential any information concerning or owned by the other Party or, in the case of Comverse, the Comverse Group, if it exercises the same care as it takes to preserve confidentiality for its own similar information. The
covenants in this Section 4.4 shall survive the transactions contemplated by this Agreement and shall continue indefinitely; provided, however, that the covenants in this Section 4.4 shall terminate with respect
to any information not constituting a trade secret under applicable Law on the fourth anniversary of the later of the Distribution Date or the date on which the Party subject to such covenants with respect to such information receives it (but any
such termination shall not terminate or otherwise limit any other covenant or restriction regarding the disclosure or use of such information under any Ancillary Agreement or other agreement, instrument or legal obligation). This Section 4.4
shall not apply to information (a) that has been in the public domain through no fault of such Party, (b) that has been later lawfully acquired from other sources by such Party, provided that such source is not and was not bound by a
confidentiality agreement, (c) the use or disclosure of which is permitted by this Agreement or any other Ancillary Agreement or any other agreement entered into pursuant hereto, (d) that is immaterial and its disclosure is required as
part of the conduct of that Party’s business and would not reasonably be expected to be detrimental to the interests of the other Party, (e) that the other Party has agreed in writing may be so used or disclosed, or (f) the Party can
demonstrate by contemporaneous written records was already in the possession of the such Party on a non-confidential basis at the time of disclosure. 
 (b) If any Party or, in the case of Comverse, any member of the Comverse Group, either determines that it is required to disclose pursuant to applicable Law, or receives any demand under lawful process or
from any Governmental Authority to disclose or provide, information of the other Party (or in the case of Comverse, any member of the Comverse Group) that is subject to the confidentiality provisions of Section 4.4(a), such Party shall
notify the other Party prior to disclosing or providing such information and shall cooperate at the expense of the requesting Party in seeking any reasonable protective arrangements requested by such other Party. Subject to the foregoing, the Person
that received such request may thereafter disclose or provide such information if and to the extent required by such Law or by lawful process or such Governmental Authority; provided, however, that the Person shall only disclose such
portion of the information as is required to be disclosed or provided. 
 Section 4.5 Privileged Matters. Except as
may be otherwise provided in an Ancillary Agreement, the Parties recognize that legal and other professional services that have been and will be provided prior to the Distribution Date have been and will be rendered for the benefit of CTI, and the
members of the Comverse Group, and that CTI, and each of the members of the Comverse Group should be deemed to be the client for the purposes of asserting all privileges which may be asserted under applicable Law. To allocate the interests of each
Party in the information as to which any Party is entitled to assert a privilege, the Parties agree as follows: 

  
 20 

 (a) CTI shall be entitled, in perpetuity, to control the assertion or waiver of all
privileges in connection with privileged information which relates solely to the CTI Business (including with respect to Liabilities as to which Comverse is required to provide indemnification under Article III), whether or not the
privileged information is in the possession of or under the control of CTI or Comverse. CTI shall also be entitled, in perpetuity, to control the assertion or waiver of all privileges in connection with privileged information that relates solely to
the subject matter of any claims constituting CTI Liabilities, now pending or which may be asserted in the future, whether or not the privileged information is in the possession of or under the control of CTI or Comverse. 

(b) Comverse shall be entitled, in perpetuity, to control the assertion or waiver of all privileges in connection with privileged
information which relates solely to the Comverse Business (including with respect to Liabilities as to which CTI is required to provide indemnification under Article III), whether or not the privileged information is in the possession of
or under the control of CTI or Comverse. Comverse shall also be entitled, in perpetuity, to control the assertion or waiver of all privileges in connection with privileged information which relates solely to the subject matter of any claims
constituting Comverse Liabilities, now pending or which may be asserted in the future, in any lawsuits or other proceedings initiated against or by Comverse, whether or not the privileged information is in the possession of Comverse or under the
control of CTI or Comverse. 
 (c) The Parties agree that they shall have a shared privilege, with equal right to assert or
waive, subject to the restrictions in this Section 4.5, with respect to all privileges not allocated pursuant to the terms of Sections 4.5(a) and (b). 

(d) Subject to Sections 4.5(a) and (b), no Party may waive any privilege which could be asserted under any applicable Law,
and in which the other Party has a shared privileged, without the consent of the other Party, which consent shall not be unreasonably withheld or delayed, except as provided in subsection (e) below. Consent shall be in writing, or shall
be deemed to be granted unless written objection is made within 20 days after notice upon the other Party requesting such consent. 
 (e) In the event of any litigation or dispute between or among the Parties, any Party and a Subsidiary of the other Party, or a Subsidiary of one Party and a Subsidiary of the other Party, either such
Party may waive a privilege in which the other Party has a shared privilege, without obtaining the consent of the other Party, provided, however, that such waiver of a shared privilege shall be effective only as to the use of
information with respect to the litigation or dispute between the Parties and/or their Subsidiaries, and shall not operate as a waiver of the shared privilege with respect to any Third-Party Claims. 

(f) If a dispute arises between or among the Parties or their respective Subsidiaries regarding whether a privilege should be waived to
protect or advance the interest of any Party, each Party agrees that it shall negotiate in good faith, shall endeavor to minimize any prejudice to the rights of the other Party, and shall not unreasonably withhold consent to any request for a waiver
by the other Party. Each Party hereto specifically agrees that it will not withhold consent to a waiver for any purpose except to protect its own legitimate interests. 

  
 21 

 (g) Upon receipt by any Party or by any Subsidiary thereof of any subpoena, discovery or
other request which arguably calls for the production or disclosure of information subject to a shared privilege or as to which another Party has the sole right hereunder to assert a privilege, or if any Party obtains knowledge that any of its or
any of its Subsidiaries’ current or former Representatives have received any subpoena, discovery or other request which arguably calls for the production or disclosure of such privileged information, such Party shall promptly notify the other
Party of the existence of the request and shall provide the other Party a reasonable opportunity to review the information and to assert any rights it or they may have under this Section 4.5 or otherwise to prevent the production or
disclosure of such privileged information. 
 (h) The transfer of all Records and other information pursuant to this Agreement
is made in reliance on the agreement of CTI and Comverse, as set forth in Sections 4.2, 4.4 and 4.5, to maintain the confidentiality of privileged information and to assert and maintain all applicable privileges. The
access to information being granted pursuant to Sections 4.1, 4.2, and 4.3 hereof, the agreement to provide witnesses and individuals pursuant to Sections 4.2 and 4.3 hereof, the furnishing of
notices and documents and other cooperative efforts contemplated by Section 4.3 hereof, and the transfer of privileged information between and among the Parties and their respective Subsidiaries, Affiliates and Representatives pursuant
to this Agreement shall not be deemed a waiver of any privilege that has been or may be asserted under this Agreement or otherwise. 
 Section 4.6 Ownership of Information. Any information owned by one Party or any of its Subsidiaries that is provided to a requesting Party pursuant to Article III or this
Article IV shall be deemed to remain the property of the providing Person. Unless specifically set forth herein, nothing contained in this Agreement shall be construed as granting or conferring rights of license or otherwise in any such
information. 
 Section 4.7 Cost of Providing Records and Information. A Party requesting Records, information or
access to Representatives, witnesses or properties, under Articles III or IV, agrees to reimburse the other Party and its Subsidiaries for the reasonable out-of-pocket costs, if any, incurred in seeking to satisfy the request of the
requesting Party. 
 Section 4.8 Retention of Records. Except (a) as provided in the Tax Disaffiliation
Agreement or (b) when a longer retention period is otherwise required by Law or agreed to in writing by any Party (whether pursuant to an agreement to which CTI or CNS is a party or otherwise), CTI and the Comverse Group shall retain all
Records relating to the CTI Business and the Comverse Business as of the Effective Time for the periods of time provided in each Party’s record retention policy (with respect to the documents of such party and without regard to the Distribution
or its effects) as in effect on the Distribution Date. Following the expiration of the retention period specified in the immediately preceding sentence, CTI or Comverse may offer in writing to deliver such Records to the other and, if such offer is
not accepted within 90 days, the offered Records may be destroyed or otherwise disposed of at any time following the expiration of such 90-day period. If a recipient of such offer shall request in writing prior to the scheduled date for such
destruction or disposal that any of Records proposed to be destroyed or disposed of be delivered to such requesting Party, the Party proposing the destruction or disposal shall promptly arrange for delivery of such of the Records as was requested
(at the cost of the requesting Party). 

  
 22 

 Section 4.9 Other Agreements Providing for Exchange of Information. The rights
and obligations granted under this Article IV are subject to any specific limitations, qualifications or additional provisions on cooperation, access to information, privilege and the sharing, exchange or confidential treatment of
information set forth in any Ancillary Agreement or in any other agreement to which CTI and a member of the Comverse Group is a party. 
 Section 4.10 Policies and Best Practices. Without representation or warranty, Comverse and CTI shall continue to be permitted to share, on a confidential basis, “best practices”
information and materials (such as policies, workflow templates and standard form contracts). 
 Section 4.11 Compliance
with Laws and Agreements. Nothing in this Article IV shall be deemed to require any Person to provide any information if doing so would, in the opinion of counsel to such Person, be inconsistent with any legal or constitutional
obligation applicable to such Person. 
 ARTICLE V 
 MISCELLANEOUS 
 Section 5.1 Complete Agreement; Construction.
This Agreement, including the Schedules, and the Ancillary Agreements shall constitute the entire agreement between the Parties with respect to the subject matter hereof and shall supersede all previous negotiations, commitments and writings with
respect to such subject matter. 
 Section 5.2 Ancillary Agreements. Except as may be expressly stated herein, this
Agreement is not intended to address, and should not be interpreted to address, the matters specifically and expressly covered by the Ancillary Agreements. 
 Section 5.3 Counterparts. This Agreement may be executed in one or more counterparts, all of which shall be considered one and the same agreement, and shall become effective when one or more
such counterparts have been signed by each of the Parties and delivered to the other Party. 
 Section 5.4 Survival of
Agreements. Except as otherwise contemplated by this Agreement, all covenants and agreements of the Parties contained in this Agreement shall survive the Distribution Date. 

Section 5.5 Distribution Expenses. Except as otherwise expressly set forth in this Agreement or any Ancillary Agreement, all
costs and expenses incurred on or prior to the Distribution Date (whether or not paid on or prior to the Distribution Date) in connection with the preparation, execution, delivery, printing and implementation of this Agreement and any Ancillary
Agreement, the Proxy Statement, the Registration Statement, the Distribution and the consummation of the transactions contemplated thereby, shall be charged to and paid by CTI. Such expenses shall be deemed to be CTI Liabilities. Except as otherwise
set forth in this Agreement, the Escrow Agreement or any Ancillary Agreement, each Party shall bear its own costs and expenses incurred after the Distribution Date. Any amount or expense to be paid or reimbursed by any Party to any other Party shall
be so paid or reimbursed promptly after the existence and amount of such obligation is determined and written demand therefor is made. 

  
 23 

 Section 5.6 Notices. All notices and other communications hereunder shall be in
writing, shall reference this Agreement and shall be hand delivered or mailed by registered or certified mail (return receipt requested) to the Parties at the following addresses (or at such other addresses for a Party as shall be specified by like
notice) and will be deemed given on the date on which such notice is received: 
 To CTI: 

Comverse Technology, Inc. 
 810 Seventh Avenue New York, NY 
 10019 Attention: General Counsel

 and, after the Merger, with a copy to: 

Verint Systems Inc. 
 330 South Service Road 
 Melville, NY 11747 

Attention: Chief Legal Officer 
 To Comverse: 
 Comverse, Inc. 200 

Quannapowitt Parkway 
 Wakefield, MA 01880 
 Attention: General Counsel 

Section 5.7 Waivers. The failure of any Party to require strict performance by any other Party of any provision in this
Agreement will not waive or diminish that Party’s right to demand strict performance thereafter of that or any other provision hereof. 
 Section 5.8 Amendments. Subject to the terms of Sections 5.11 and 5.13 hereof, this Agreement may not be modified or amended except by an agreement in writing signed by
each of the Parties. 
 Section 5.9 Assignment. This Agreement shall not be assignable, in whole or in part,
directly or indirectly, by any Party without the prior written consent of the other Party and any attempt to assign any rights or obligations arising under this Agreement without such consent shall be void; provided, however, that
either Party may assign this Agreement to a purchaser of all or substantially all of the properties and assets of such Party; provided, that, no such assignment will relieve the assigning Party of its obligations hereunder. 

Section 5.10 Successors and Assigns. The provisions to this Agreement shall be binding upon, inure to the benefit of and be
enforceable by the Parties and their respective successors and permitted assigns. 

  
 24 

 Section 5.11 Termination. This Agreement (including Article III
hereof) may be terminated and the Distribution may be amended, modified or abandoned at any time prior to the Distribution by and in the sole discretion of CTI without the approval of Comverse or the shareholders of CTI. In the event of such
termination, no Party shall have any liability of any kind to any other Party or any other Person. After the Distribution, this Agreement may not be terminated except by an agreement in writing signed by the Parties; provided, however,
that Article III shall not be terminated or amended after the Distribution in respect of a Third-Party beneficiary thereto without the consent of such Person. 
 Section 5.12 Subsidiaries. Each of the Parties shall cause to be performed, and hereby guarantees the performance of, all actions, agreements and obligations set forth herein to be performed
by any entity that is contemplated to be a Subsidiary of such Party after the Distribution Date. 
 Section 5.13
Third-Party Beneficiaries. This Agreement is solely for the benefit of the Parties and their respective Subsidiaries, Affiliates, successors and assigns and shall not be deemed to confer upon any other Person any remedy, claim, liability,
reimbursement, cause of action or other right in excess of those existing without reference to this Agreement. The Parties agree that (i) Verint and each of its Subsidiaries and Affiliates is an intended Third-Party beneficiary of this
Agreement until such time as the Merger Agreement is terminated in accordance with its terms and (ii) each Comverse Indemnitee and CTI Indemnitee who is not a party to this Agreement is an intended Third-Party beneficiary of the indemnification
provisions of this Agreement. 
 Section 5.14 Title and Headings. Titles and headings to Sections herein are
inserted for convenience of reference only and are not intended to be a part of or to affect the meaning or interpretation of this Agreement. 
 Section 5.15 Schedules. The Schedules shall be construed with and as an integral part of this Agreement to the same extent as if the same had been set forth verbatim herein. 

Section 5.16 Governing Law. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW
YORK APPLICABLE TO CONTRACTS MADE AND TO BE PERFORMED IN THE STATE OF NEW YORK. 
 Section 5.17 Waiver of Jury
Trial. The Parties hereby irrevocably waive any and all right to trial by jury in any legal proceeding arising out of or related to this Agreement. 
 Section 5.18 Specific Performance. From and after the Distribution, in the event of any actual or threatened default in, or breach of, any of the terms, conditions and provisions of this
Agreement, the Parties agree that the Party to this Agreement who is or is to be thereby aggrieved shall have the right to specific performance and injunctive or other equitable relief of its rights under this Agreement, in addition to any and all
other rights and remedies at law or in equity, and all such rights and remedies shall be cumulative. The Parties agree that, from and after the Distribution, the remedies at Law for any breach or threatened breach of this Agreement, including
monetary damages, are inadequate compensation for any loss, that any defense in any action for specific performance that a remedy at Law would be adequate is hereby waived, and that any requirements for the securing or posting of any bond with such
remedy are hereby waived. 

  
 25 

 Section 5.19 Severability. In the event any one or more of the provisions
contained in this Agreement should be held invalid, illegal or unenforceable in any respect, the validity, legality and enforceability of the remaining provisions contained herein and therein shall not in any way be affected or impaired thereby. The
Parties shall endeavor in good faith negotiations to replace the invalid, illegal or unenforceable provisions with valid provisions, the economic effect of which comes as close as possible to that of the invalid, illegal or unenforceable provisions.

  
 26 

 IN WITNESS WHEREOF, the Parties have caused this Agreement to be duly executed as of the day
and year first above written. 
  

			
	COMVERSE TECHNOLOGY, INC.
		
	By:	 	/s/ Shefali Shah
	Name:	 	Shefali Shah
	Title:	 	Senior Vice President, General Counsel and Corporate Secretary

  

			
	COMVERSE, INC.
		
	By:	 	/s/ Thomas B. Sabol
	Name:	 	Thomas B. Sabol
	Title:	 	Chief Financial Officer

 [Signature Page to Distribution Agreement] 

 Schedule A-1 
 EMPLOYEE OR FORMER EMPLOYEE ACTIONS 
  

	 	•	 	 Action filed in the Regional Labor Court in Tel Aviv against CTI, Comverse and Andre Dahan on March 18, 2008 by Uri Arad (Case Number 6930/08)

  

	 	•	 	 Action filed in Tel Aviv Labor Court against Comverse Ltd. on March 16, 2009 by plaintiff Katriel (originally Case Number 3536/09, new Case Number
14066-03-10) 

  

	 	•	 	 Actions filed in the Tel Aviv District Court against CTI on March 26, 2009 by plaintiffs Katriel (Case Number 1334/09) and Deutsch (Case Number
1335/09). Case Numbers 14066-03-10, 1334/09 and 1335/09 together with a claim filed by Plaintiff Deutsch against Verint Ltd. in the Tel Aviv Labor Court Case No. 34335-02-10 were consolidated before the Tel Aviv District Court

 Schedule A-2 
 ADDITIONAL EMPLOYEE OR FORMER EMPLOYEE ACTIONS 
  

	 	•	 	 Action filed in the Tel Aviv Regional Magistrate District Court against CTI on October 7, 2008 by plaintiffs Galamidi and Shabtai (Case Number
47825/10). Motion for leave to appeal filed in Tel Aviv District Court by CTI on March 21, 2012, on a Magistrate Court decision (Case Number 37986-03-12) 

Action filed with the New York State Division of Human Rights on May 2, 2012 by Maria Castro 

 

	 	•	 	 Action filed in Tel Aviv Labor Court against CTI and Comverse Ltd. on March 18, 2010 by plaintiff Koffler 

 

	 	•	 	 Action filed in Tel Aviv District Court against CTI and Comverse Ltd. on March 17, 2010 by plaintiff Koffler (Case Number 3079903/10)

  

	 	•	 	 Action filed in Tel Aviv District Court against Comverse Inc., CTI and Comverse Ltd. on August 2, 2012 by Plaintiff Tchwella (Case Number
344-08-12) 

 Schedule B 
 OVERLAPPING INDEMNITEES 
 John Bunyan 

Eric Koza 
 Joel Legon 

Shefali Shah 

 Schedule C 
 CTI MARKSTransition Services Agreement

 Exhibit 10.2 
 TRANSITION SERVICES AGREEMENT 
 BY AND BETWEEN 

COMVERSE TECHNOLOGY, INC. 
 AND 
 COMVERSE, INC. 

DATED AS OF OCTOBER 31, 2012 

 TABLE OF CONTENTS 

 

							
	 	  	 	  	Page	 
	 ARTICLE I
	  			
	 DEFINITIONS
	  			
	Section 1.1	  	General	  	 	1	  
	Section 1.2	  	Reference; Interpretation	  	 	4	  
		
	 ARTICLE II
	  			
	 PROVISION OF SERVICES
	  			
	Section 2.1	  	Provision of Services	  	 	4	  
	Section 2.2	  	Provision of CTI-Provided Services	  	 	5	  
	Section 2.3	  	Use of Services and CTI-Provided Services	  	 	6	  
	Section 2.4	  	Resources to Perform Services and CTI-Provided Services	  	 	6	  
	Section 2.5	  	Facilities	  	 	7	  
	Section 2.6	  	Books and Records	  	 	7	  
	Section 2.7	  	Representations and Warranties	  	 	7	  
	Section 2.8	  	CTI Business	  	 	7	  
		
	 ARTICLE III
	  			
	 PAYMENT; WARRANTY; TAXES
	  			
	Section 3.1	  	Fees and Reimbursable Amounts	  	 	8	  
	Section 3.2	  	Adjustments	  	 	9	  
	Section 3.3	  	Invoices and Payment	  	 	9	  
	Section 3.4	  	Disclaimer of Warranty	  	 	11	  
	Section 3.5	  	Taxes	  	 	11	  
		
	 ARTICLE IV
	  			
	 TERM; TERMINATION
	  			
	Section 4.1	  	Term	  	 	11	  
	Section 4.2	  	Termination for Reasons other than Default	  	 	12	  
	Section 4.3	  	Event of Default	  	 	12	  
	Section 4.4	  	Remedies	  	 	13	  
	Section 4.5	  	Books and Records	  	 	13	  
	Section 4.6	  	Effect of Expiration/Termination	  	 	13	  
	Section 4.7	  	Obligations Post Expiration/Termination	  	 	13	  
		
	 ARTICLE V
	  			
	 CERTAIN OTHER COVENANTS
	  			
	Section 5.1	  	Confidentiality	  	 	14	  
	Section 5.2	  	Access to Certain Information	  	 	14	  
	Section 5.3	  	Title to Data	  	 	14	  
	Section 5.4	  	Compliance with Laws	  	 	15	  
		
	 ARTICLE VI
	  			
	 LIABILITIES
	  			
	Section 6.1	  	Limitation of Liability	  	 	15	  
	Section 6.2	  	Indemnification	  	 	18	  
		
	 ARTICLE VII
	  			
	 MISCELLANEOUS
	  			
	Section 7.1	  	Notice	  	 	18	  
	Section 7.2	  	Force Majeure	  	 	19	  

  
 i 

							
	Section 7.3	  	Independent Contractors	  	 	19	  
	Section 7.4	  	Amendment; Waivers.	  	 	19	  
	Section 7.5	  	Assignment; Successors and Assigns	  	 	19	  
	Section 7.6	  	Titles and Headings	  	 	20	  
	Section 7.7	  	Complete Agreement; Construction	  	 	20	  
	Section 7.8	  	Schedules	  	 	20	  
	Section 7.9	  	Counterparts	  	 	20	  
	Section 7.10	  	Governing Law and Jurisdiction; Waiver of Trial by Jury	  	 	20	  
	Section 7.11	  	Specific Performance	  	 	21	  
	Section 7.12	  	Time is of the Essence	  	 	21	  
	Section 7.13	  	No Third Party Beneficiaries	  	 	21	  
	Section 7.14	  	Severability	  	 	21	  
			
	Schedule A	  	Services and Fees	  			
	Schedule B	  	CTI-Provided Services	  			

  
 ii 

 TRANSITION SERVICES AGREEMENT 

This Transition Services Agreement is entered into as of this 31st day of October, 2012 (“Effective Date”), by and
between Comverse Technology, Inc., a New York corporation (“CTI”), and Comverse, Inc., a Delaware corporation and a wholly-owned subsidiary of CTI (“Comverse”) (Comverse together with CTI, the
“Parties,” and Comverse and CTI individually, as applicable, each a “Party”). 
 WHEREAS, CTI
and Comverse have entered into a Distribution Agreement, dated as of October 31, 2012 (the “Distribution Agreement”), which sets forth the terms pursuant to which CTI will distribute the common stock of Comverse to
shareholders of CTI (the ”Distribution”); and 
 WHEREAS, in connection with the Distribution, and in
order to ensure an orderly transition under the Distribution Agreement, it will be necessary, for a transitional period, for Comverse to provide to CTI the Services described herein and for CTI to provide to Comverse the CTI-Provided Services
described herein. 
 NOW, THEREFORE, in consideration of the mutual covenants and agreements contained herein and for other good
and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties hereby agree as follows: 

ARTICLE I  

DEFINITIONS 
 Section 1.1 General. Unless otherwise defined herein or unless the context otherwise requires, as used in this Agreement, the following terms shall have the following meanings: 

“Accounting Review Costs” shall have the meaning set forth in the Tax Disaffiliation Agreement. 

“Accounting Review Requirements” shall have the meaning set forth in the Tax Disaffiliation Agreement. 

“Agreement” shall mean this Agreement, including Schedule A and Schedule B attached hereto, as the same
may be amended by the Parties from time to time. 
 “Appropriate Actions” shall mean the acts that a party
would take, and the amount of effort and resources such party would expend, when fulfilling such obligation, performing such action, or incurring such expense for such party’s own benefit, in each case acting in good faith and on a reasonable
basis. 
 “Big Four Accounting Firm” shall mean any of the following accounting firms: PricewaterhouseCoopers;
Deloitte Touche Tohmatsu; Ernst & Young; and KPMG. 
 “Comverse” shall have the meaning set forth in
the preamble to this Agreement and, subject to Section 7.5, shall include any successor of Comverse. 

 “Comverse Indemnitees” shall have the meaning set forth in the Distribution
Agreement. 
 “Comverse Pass-Through Costs” shall mean the costs and expenses paid out of pocket by Comverse to
any third party service provider or consultant to the extent such third party’s services (and corresponding fees) are (a) incremental license fees or one-time consent fees payable by Comverse to a third party service provider or licensor
to secure the software license rights required for Comverse to perform the Services in accordance with this Agreement or (b) are paid to a third party service provider or consultant whose services (i) are required to enable Comverse’s
performance of the Services in accordance with this Agreement and (ii) were utilized by Comverse prior to the Effective Date to provide services to CTI equivalent to the applicable Services then being provided hereunder. 

“CTI” shall have the meaning set forth in the preamble to this Agreement and shall include any successor of CTI.

 “CTI Costs” shall mean the costs and expenses incurred by CTI in the performance of the CTI-Provided
Services, in each case including (a) the CTI Pass-Through Costs and (b) those costs and expenses incurred by CTI to utilize CTI’s own employees (including salary, benefits and other employment-related costs of applicable individuals)
and to utilize resources owned, leased, or licensed by CTI in the applicable month to perform the CTI-Provided Services; provided, however, that where an employee or other resource of CTI supports both the performance of the
CTI-Provided Services for the benefit of Comverse and the performance of any other activity (including activities for the benefit of CTI or any other party), the CTI costs and expenses relating to such CTI employee or other resource shall be
allocated between CTI and Comverse on the basis of the percentage of work hours that month spent performing the Services for the benefit of Comverse. 
 “CTI Group” shall have the meaning set forth in the Tax Disaffiliation Agreement. 
 “CTI Indemnitees” shall have the meaning set forth in the Distribution Agreement. 
 “CTI Pass-Through Costs” shall mean the costs and expenses paid out of pocket by CTI to any third party service provider or consultant to the extent such third party’s services (and
corresponding fees) are (a) incremental license fees or one-time consent fees payable by CTI to a third party service provider or licensor to secure the software license rights required for CTI to perform the CTI-Provided Services in accordance
with this Agreement or (b) are paid to a third party service provider or contractor whose services are required (as determined by CTI in good faith) to enable CTI’s performance of the CTI-Provided Services in accordance with this
Agreement. 
 “CTI-Provided Services” shall mean the services, functions, and responsibilities set forth in
Schedule B, in each case to the extent (a) provided to, or performed for the benefit of, Comverse by CTI at any point during the twelve (12) months prior to the Effective Date and (b) the applicable service, function, or
responsibility was performed by an individual who (i) is employed by CTI on the Effective Date and (ii) remains an employee of CTI as of the date such service, function, or responsibility is to be performed by CTI pursuant to this
Agreement. 
 “Default” shall have the meaning set forth in Section 4.3 of this Agreement.

  
 2 

 “Distribution” shall have the meaning set forth in the recitals to this
Agreement. 
 “Distribution Agreement” shall have the meaning set forth in the recitals to the Agreement.

 “Effective Date” shall have the meaning set forth in the preamble to this Agreement. 

“Estimated CTI-Provided Services Fees” shall have the meaning set forth in Section 3.3(b) of this Agreement.

 “Facilities” shall have the meaning set forth in Section 2.5 of this Agreement. 

“Financial Requirements” shall have the meaning set forth in the Distribution Agreement. 

“Force Majeure” shall have the meaning set forth in Section 7.2 of this Agreement. 

“Losses and Expenses” shall have the meaning set forth in Section 6.2 of this Agreement. 

“Merger Agreement” shall mean the Agreement and Plan of Merger among Verint Systems Inc., Comverse Technology Inc. and
Victory Acquisition I LLC dated as of August 12, 2012, as amended, modified or supplemented from time to time in accordance with its terms. 
 “Merger Effective Time” shall have the meaning given to “Effective Time” in the Merger Agreement. 
 “Party” and “Parties” shall have the meaning set forth in the preamble to this Agreement. 
 “Person” shall include an individual, a partnership, a corporation, a limited liability company, a division or business unit of a corporation, a trust, an unincorporated organization, a
federal, state, local or foreign government or any department or agency thereof and any other entity. 

“Service” or “Services” shall mean (a) the services, functions, and responsibilities provided to,
or performed for the benefit of, CTI or any CTI employee by Comverse or any of its subsidiaries or their respective employees at any point during the twelve (12) months prior to the Effective Date, (b) the services, functions, and
responsibilities provided to, or performed for the benefit of, CTI or any CTI employee by any individual who (i) was employed by CTI at any point prior to the Effective Date and (ii) becomes an employee of Comverse or any of its
subsidiaries before, in connection with, or following the Distribution, (c) any additional service, function, or responsibility that CTI reasonably needs following the Effective Date in order for CTI or its affiliates to operate the business of
CTI in the ordinary course, to defend any legal action, or to comply with any legal, tax or financial law, rule, regulation or requirement, in each case, and (d) such other services as may from time to time be agreed between the Parties in
writing. The Services include those services set forth in Schedule A, as the same may be amended from time to time. 

“Services Documentation” shall have the meaning set forth in Section 2.1(c) of this Agreement. 

  
 3 

 “Straddle Period” shall have the meaning set forth in the Tax
Disaffiliation Agreement. 
 “Tax Authorities” shall have the meaning set forth in Section 3.5(b)
of this Agreement. 
 “Tax Disaffiliation Agreement” shall mean the Tax Disaffiliation Agreement by and between
CTI and Comverse dated as of the Effective Date, as amended, modified or supplemented from time to time in accordance with its terms. 
 “Tax Return” shall have the meaning set forth in the Tax Disaffiliation Agreement. 
 Section 1.2 Reference; Interpretation. References in this Agreement to any gender include references to all genders, and references to the singular include references to the plural and vice versa.
The words “include,” “includes” and “including” when used in this Agreement shall be deemed to be followed by the phrase “without limitation.” Unless the context otherwise requires,
references in this Agreement to Articles, Sections and Schedules shall be deemed to be references to Articles and Sections of, and Schedules to, this Agreement. Unless the context otherwise requires, the words “hereof”,
“hereby” and “herein” and words of similar meaning when used in this Agreement refer to this Agreement in its entirety and not to any particular Article, Section or provision of this Agreement. This Agreement shall
not be construed against either Party as the principal draftsperson hereof. All references to monetary amounts herein shall be references to such amounts in US Dollars unless otherwise specified. 

ARTICLE II 

PROVISION OF SERVICES 
 Section 2.1 Provision of Services. 
 (a) Comverse shall provide, and shall
cause its subsidiaries and their respective employees to provide, the Services to CTI, in each case except to the extent that CTI requests in writing that Comverse not provide a particular Service identified in such CTI request. Comverse shall be
required to take Appropriate Actions to fulfill each of its obligations set forth in this Agreement. The Services performed by Comverse and, as applicable, its subsidiaries for CTI shall be performed on a timely basis by employees with institutional
knowledge of and familiarity, training and skill with respect to, the provision of such Service. Comverse and, as applicable, its subsidiaries will retain employees with the relevant institutional knowledge, familiarity, training and skill required
to provide the Services to CTI. If CTI requests in good faith a service in addition to the Services (which request CTI may make at any time), then Comverse shall act expeditiously to cause such requested additional service(s) to be provided on a
timely basis on terms mutually agreeable to the Parties. 
 (b) Unless otherwise agreed by the Parties in writing, the Services
shall be performed by Comverse for CTI (i) in a manner to permit CTI to comply with its legal obligations (ii) in a manner that is substantially the same as the timely manner and level of support in which such Services were generally
performed by Comverse for CTI (or, as applicable, by former CTI employees for CTI) during the twelve (12) months prior to the Effective Date and (iii) to the extent a Service or a portion of the Services was not provided during the twelve
(12) months prior to the Effective Date but is required or requested by CTI following the Effective Date, with the same degree of care and substantially the same service levels as Comverse performs

  
 4 

 
comparable services for itself but in no event using less than a reasonable degree of care; provided, however, that in no event shall the Services be of smaller scope or lesser
quality (in each case as judged from the perspective of CTI), than the descriptions of Service scope and quality set forth in the Services Documentation. 
 (c) CTI may, acting in good faith, request that Comverse provide the statements of work, procedures manuals, technical architecture, data security and incident response protocols, business continuity and
disaster recovery plans, reports, and other documentation maintained by Comverse (or made available to Comverse by any third party service provider) that relates to performance, scope, or quality of the Services, in each case (i) as such
documentation exists as of the Effective Date and (ii) as such documentation exists as of the date of the applicable request (such documents and records, “Services Documentation”). Comverse shall provide requested Services
Documentation to CTI as soon as is reasonably practicable, but in no event later than five (5) business days after receipt of the applicable CTI request where the requested documents are ordinarily provided in connection with the Services (and
as soon as reasonably practicable with respect to other documents). Except to the extent otherwise agreed by CTI in advance in its sole discretion, Comverse shall not make any change to the Services Documentation that (i) reduces the scope or
quality of the Services (in each case as judged from the perspective of CTI), (ii) results in a breach of law by CTI or Comverse, or (iii) results in the increase of any amounts payable by CTI to Comverse or to any third party. 

(d) Except to the extent otherwise expressly provided in this Agreement, Comverse shall perform, and shall cause its subsidiaries to
perform, the Services and its other obligations set forth in this Agreement in a manner that does not discriminate against CTI relative to Comverse (or the other affiliates, business divisions, and operations owned and operated by Comverse or its
affiliates). 
 (e) Comverse shall perform the Services in accordance with all applicable laws relating to the protection of
personally identifiable information (or any other category of personal information protected by law, such as an individual’s health information). 
 (f) Except to the extent Comverse has subcontracted its performance of the Services during the twelve (12) months prior to the Effective Date, Comverse shall not subcontract the performance of any or
all of the Services without CTI’s prior written consent, such consent not to be unreasonably withheld. With respect to any subcontractor of Comverse’s obligations under this Agreement, Comverse shall be responsible for the actions and
failures to act of any as such subcontractor as if such actions and failures to act are Comverse’s own. For the avoidance of doubt, in the event Comverse subcontracts its performance of the Services, the fee payable by CTI shall not exceed the
fee listed for such Services on Schedule A. 
 Section 2.2 Provision of CTI-Provided Services. 

(a) Upon reasonable advance notice from Comverse consistent with the timing of substantially similar requests during the twelve
(12) months prior to the Effective Date, CTI shall provide to Comverse those CTI-Provided Services that Comverse may request from time to time hereunder. When making such a request, Comverse shall indicate the duration for which CTI is to
provide the requested CTI-Provided Service. 

  
 5 

 (b) Unless otherwise agreed by the Parties, the CTI-Provided Services shall be performed by
CTI, to the extent it has any available and qualified employees, for Comverse with the same degree of care and with substantially the same service levels as CTI’s performance of comparable services for itself but in no event using less than a
reasonable degree of care. CTI shall be obligated to perform the CTI-Provided Services only on a transitional basis to provide temporary support to Comverse as Comverse commences performance of the CTI-Provided Services for Comverse’s own
benefit. Comverse shall commence performance of services to replace all of the CTI-Provided Services as soon as is reasonably practicable after the Effective Date. 
 (c) CTI shall, within five (5) business days after receipt of Comverse’s request, make available to Comverse the same reports and documentation that CTI provided or otherwise made available to
Comverse in connection with CTI’s performance of the applicable CTI-Provided Services during the twelve (12) months prior to the Effective Date, in each case solely to the extent that CTI, in its sole discretion, has the employees and
resources necessary and qualified to prepare any such reports or documentation. 
 (d) CTI may, in its discretion, subcontract
its performance of the CTI-Provided Services and any of its other obligations under this Agreement. With respect to any subcontractor of CTI’s obligations under this Agreement, CTI shall be responsible for the actions and failures to act of any
as such subcontractor as if such actions and failures to act are CTI’s own. For the avoidance of doubt, in the event CTI subcontracts its performance of the CTI-Provided Services, the fee payable by Comverse shall not exceed the fee listed for
such Services on Schedule B. 
 Section 2.3 Use of Services and CTI-Provided Services. 

(a) Comverse shall be required to provide the Services only (i) to CTI or to the party (or such party’s affiliates) to which
CTI has assigned this Agreement pursuant to Section 7.5 and (ii) in connection with the conduct of the CTI Business. Except to the extent otherwise set forth in this Section 2.3(a), CTI shall not resell any of the
Services to any Person whatsoever or permit the use of the Services to any Person other than in connection with the conduct of the CTI Business in the ordinary course. 
 (b) CTI shall be required to provide the CTI-Provided Services to Comverse only (i) in connection with the conduct by Comverse of its businesses and (ii) to the extent CTI has employees who
would normally perform such CTI-Provided Services in the ordinary course of their employment by CTI. Comverse shall not resell any of the CTI-Provided Services to any Person whatsoever or permit the use of the CTI-Provided Services to any Person
other than in connection with the conduct of Comverse’s businesses in the ordinary course. 
 Section 2.4 Resources to
Perform Services and CTI-Provided Services. 
 (a) Comverse shall, and shall cause its subsidiaries and their respective
employees to, furnish all personnel, facilities, equipment, software, and any other assets and resources as needed for Comverse to provide the Services. 

  
 6 

 (b) CTI shall furnish only personnel as needed for CTI to provide the CTI-Provided Services;
provided, however, that in no event shall CTI be obligated to provide any personnel for such purposes who are not then employees of CTI. Comverse shall furnish all facilities, equipment, software, and other assets as needed by CTI (and
as determined by CTI) to provide the CTI-Provided Services. 
 Section 2.5 Facilities. The Services shall be performed by
Comverse or its subsidiaries at their offices using its furniture, fixtures, and equipment, including computer hardware (the “Facilities”). Any Facilities to be purchased or leased during the term of this Agreement for use in
providing the Services shall be purchased or leased by Comverse. All Facilities owned by Comverse shall remain the property of Comverse, and CTI shall not have any right, title, or interest in or to any of the Facilities; provided,
however, that CTI shall have the right to occupy and to use, and Comverse shall make (or shall cause one of its subsidiaries to make) available to CTI, Facilities (and any additional facilities and equipment) as jointly determined by CTI and
Comverse in good faith to be required for CTI (a) to operate the CTI Business or (b) to provide the then-current CTI-Provided Services. Comverse may, upon reasonable advance notice, require CTI to relocate in order for Comverse to
provide CTI use of Facilities pursuant to this Section 2.5; provided, however, that in the event of any such location, Comverse shall (i) make all relocation arrangements (which shall be subject to CTI’s approval,
not to be unreasonably withheld) and (ii) pay any relocation costs and expenses, whether incurred by CTI or Comverse, relating to the relocation of any CTI employees or resources from one Facility to another Facility. 

Section 2.6 Books and Records. Comverse shall keep books and records of the Services provided and reasonable supporting
documentation of all charges incurred in connection with providing such Services, in such detail and for such time periods as shall be in accordance with Comverse’s then standard record keeping procedures, as in effect from time to time, and
shall make such books and records reasonably available to CTI, at no cost, for the purpose of verifying the amounts payable in connection with the Services. CTI shall keep books and records of the CTI-Provided Services provided and reasonable
supporting documentation of all charges incurred in connection with providing such CTI-Provided Services, in such detail and for such time periods as shall be in accordance with CTI’s then standard record keeping procedures, as in effect from
time to time, and shall make such books and records reasonably available to Comverse, at no cost, for the purpose of verifying the amounts payable in connection with the CTI-Provided Services. 

Section 2.7 Representations and Warranties. Each Party hereto represents and warrants that (a) it is a corporation duly
organized, validly existing and in good standing under the laws of the jurisdiction of its incorporation, (b) it has full corporate power and authority to enter into this Agreement and to perform its obligations hereunder, (c) the
execution and delivery of this Agreement by it and the performance by it of its obligations hereunder have been duly and validly authorized by all necessary corporate action, and (d) no contract with any other Person exists or will exist which
would interfere with its obligations hereunder. 
 Section 2.8 CTI Business. Notwithstanding anything herein to the
contrary, Comverse will have no obligation to provide Services to CTI to the extent such Services relate to any expansion or material change in the operation of the CTI Business. For the avoidance of doubt, Comverse will continue to be obligated to
provide Services hereunder notwithstanding an expansion or material change in the operation of the CTI Business so long as such Services related to the CTI Business prior to such expansion or change. 

  
 7 

 ARTICLE III 
 PAYMENT; WARRANTY; TAXES 
 Section 3.1 Fees and Reimbursable
Amounts. 
 (a) As full and complete consideration for Comverse’s performance of the Services in accordance with this
Agreement, CTI shall, with respect to each applicable category of Services set forth in Schedule A, pay Comverse on a calendar quarterly basis (i) the applicable Comverse Pass-Through Costs and (ii) a Services fee in an amount
equal to the sum of the pro-rata portion of the annual fees for the categories of Services that Comverse provided during the applicable quarter (i.e., 25% of the annual fee in each case unless the Services were not provided during the entire
quarter, in which case the pro-rata allocation shall be based on the number of days of Services relative to the total number of days in the applicable quarter), in each case in the amount set forth in Schedule A as being payable by CTI
with respect to each applicable Services category; provided, however, that following the Merger Effective Time, (A) CTI shall not be invoiced or pay for any amounts, fees or any Comverse Pass-Through Costs (and, for the avoidance
of doubt, Comverse shall pay all such fees and Comverse Pass-Through Costs) relating to (i) any “Finance & Accounting” Services, “Financial Reporting” Services and/or “Internal Audit and SOX” Services (in
each case as set forth in Schedule A) or any other Services necessary to provide the Finance & Accounting, Financial Reporting and/or Internal Audit and SOX Services relating to, associated with or in respect of any periods
prior to the Merger Effective Time, in each case as determined by CTI, (ii) the preparation and filing with the Securities and Exchange Commission (the “SEC”) of CTI’s Annual Report on Form 10-K for the fiscal year ending
January 31, 2013 or any other periodic reports or filings relating to, associated with or in respect of any periods prior to the Merger Effective Time, and (B) notwithstanding anything to the contrary herein, any fees or Comverse
Pass-Through Costs associated with the preparation and review of CTI and its subsidiaries’ U.S. federal income, New York State income, New York City income Tax Returns, and all material Tax Returns for the taxable years ending 1/31/2012 and
1/31/2013 (or such other date on which the taxable period ends, in the case of a short taxable period), including, but not limited to, the Tax Filing Services associated therewith, will be determined solely in accordance with the provisions of
Section 3.01 of the Tax Disaffiliation Agreement (including, without giving regard to any of the fees on Schedule A). With respect to any amounts payable by CTI hereunder that are determined by reference to costs and expenses
paid by Comverse, after the end of each calendar quarter, Comverse shall deliver to CTI a report for the quarterly fee payable with respect to Services provided by Comverse under this Agreement, which report shall include an itemized report (with
reasonable supporting documentation) of all expenses for which Comverse seeks reimbursement hereunder. CTI shall have the option in its sole discretion to request invoicing in advance with respect to any fees payable for the Services (as set forth
in Schedule A) and with respect to any estimated Comverse Pass-Through Costs, and in the event CTI requests invoicing in advance with respect to any such amounts, Comverse shall invoice CTI in advance for those Services and Comverse
Pass-Through Costs (as agreed by CTI in its sole discretion) estimated to be payable with respect to the Services and time periods with respect to which CTI has requested 

  
 8 

 
prepayment. Any amounts that have been invoiced in advance and paid by CTI in accordance with this Section 3.1(a) shall be trued-up by CTI and Comverse as of the last day of the
applicable prepaid period. Any Comverse Pass-Through Costs require the prior written approval of CTI, which shall not be unreasonably withheld. 
 (b) As full and complete consideration for CTI’s performance of the CTI-Provided Services in accordance with this Agreement, Comverse shall pay CTI on a monthly basis the applicable CTI Costs. All
such amounts shall be invoiced (as Estimated CTI-Provided Services Fees) and trued up in accordance with Section 3.3(b). After the end of each calendar month, CTI shall deliver to Comverse a report for the monthly reimbursement payable
with respect to CTI-Provided Services provided by CTI under this Agreement, which report shall include an itemized report (with reasonable supporting documentation) of all expenses for which CTI seeks reimbursement hereunder. 

(c) CTI shall act promptly and in good faith to reduce the amount of CTI Pass-Through Costs by notifying each applicable third party
service provider or consultant that such third party should execute an engagement letter with Comverse to permit such third party to invoice Comverse directly. Comverse shall act promptly and in good faith to reduce the amount of Comverse
Pass-Through Costs by notifying each applicable third party service provider or consultant that such third party should execute an engagement letter with CTI to permit such third party to invoice CTI directly. Each Party shall (i) negotiate
such engagement letters in good faith to execute such letters in a timely fashion and (ii) cooperate with reasonable requests from the other Party to facilitate the negotiation of new engagement letters with applicable third party service
providers and consultants pursuant to this Section 3.1(c). 
 (d) Notwithstanding anything to the contrary herein,
Comverse hereby agrees that CTI shall have the opportunity to review in good faith and approve (which approval shall not be unreasonably withheld) and discuss the terms of any proposal by a third party service provider that is rendering any services
pursuant to this Agreement, including with respect to such third party service provider’s proposed or estimated fees, statement and scope of work and engagement letter, including the Accounting Review Requirements and the Accounting Review
Costs. 
 Section 3.2 Adjustments. Not more than once every calendar year during the term of this Agreement, Comverse and
CTI shall meet to discuss and negotiate in good faith any adjustments to the annual fees set forth on Schedule A hereto that is requested by any Party, if the Parties mutually agree to modify, amend, delete or add to the scope of
Services being provided. 
 Section 3.3 Invoices and Payment. 

(a) Within ten (10) business days after the end of the applicable calendar quarter, Comverse will invoice CTI in arrears for the
Services provided during the preceding quarter, other than any Comverse Pass-Through Costs, which shall be billed once the third party service provider issues an invoice for payment therefor. Comverse shall include in each such invoice a description
in reasonable detail of the Services provided during such period and the amounts payable by CTI therefor pursuant to this Agreement. CTI shall pay each such invoice for the 

  
 9 

 
Services within thirty (30) days after the date CTI receives such invoice; provided, however, that CTI may, in its discretion, withhold 50% of any amount payable under this
Agreement that CTI disputes in good faith pending the resolution of such dispute (which amounts shall include Comverse Pass-Through Costs in excess of those Comverse Pass-Through Costs previously approved by CTI in accordance with
Section 3.1(d)). Unpaid fees that are being disputed in good faith dispute will not be considered a basis for default hereunder. To the extent that a dispute regarding the amount of any disputed fees cannot be resolved by the Parties,
the dispute resolution procedures set forth in Section 7.10 herein will apply, in which case, the losing party shall pay such percentage of the prevailing party’s reasonable attorney’s fees and other court costs based on the
aggregate amount of disputed items so submitted as it bears to the amount awarded to the prevailing party. Notwithstanding the foregoing, immediately prior to the closing of the merger between CTI and a wholly owned subsidiary of Verint Systems
Inc., should such merger occur, Comverse and CTI will settle and pay all amounts owing by any Party under this Agreement such that as of such closing there are no outstanding payment obligations under this Agreement. 

(b) In the event Comverse requests that CTI provide CTI-Provided Services, CTI will provide Comverse an estimate of the monthly costs and
expenses (as determined by CTI acting in good faith) for CTI to perform the requested CTI-Provided Services (the “Estimated CTI-Provided Services Fees”). CTI will invoice Comverse in advance on a monthly basis for the CTI-Provided
Services, which invoice shall include: (i) the Estimated CTI-Provided Services Fees for the coming month; and (ii) a credit against or charge in addition to such Estimated CTI-Provided Services Fees, as applicable, to reflect in arrears
the difference, if any, between (A) the Estimated CTI-Provided Services Fees for the prior month and (B) the applicable costs and expenses actually incurred by CTI to perform the CTI-Provided Services in such prior month. CTI shall include
in each invoice for the CTI-Provided Services a reasonably detailed description of such CTI-Provided Services and the amounts charged therefor. Comverse will pay such invoiced amounts within five (5) business days after the date Comverse
receives such invoice. CTI shall not be obligated to provide any CTI-Provided Services in the event CTI has not received prepayment in full of any invoice for CTI-Provided Services, including, for the avoidance of doubt, where Comverse has withheld
payment because Comverse disputes an invoice for the CTI-Provided Services (including where Comverse disputes amounts invoiced in arrears to true-up the Estimated CTI-Provided Services Fees and CTI’s actual applicable costs and expenses).

 (c) Invoices not paid within thirty (30) days after receipt, other than those for which CTI has withheld payment of a
disputed amount in accordance with Section 3.3(a), shall be subject to late charges for each month or portion thereof the statement is overdue, calculated as the lesser of (i) the then current rate of interest per annum announced
from time to time by the Wall Street Journal as the “prime rate” at large U.S. money center banks, plus one percentage point or (ii) the maximum rate allowed by applicable law. 

(d) Within five (5) business days after a Party receives a request from the other Party for supporting documentation relating to the
calculation or verification of fees to be paid or costs and expenses to be reimbursed pursuant to this Article III, the Party receiving such request shall provide the requesting Party (and such Party’s accountants, attorneys,
auditors, and regulators) with access to, and any assistance and information that they may reasonably require with respect 

  
 10 

 
to, such records and supporting documentation as may be reasonably requested by the requesting Party to audit fees to be paid, and costs and expenses to be reimbursed, pursuant to this Agreement
by the requesting Party. Where a third party auditor is not bound by law or industry or professional regulations to maintain the confidentiality of information disclosed to in connection with the audit contemplated in this
Section 3.3(d), the Party requesting the applicable audit shall execute an agreement with its designated third party auditors to obligate such third party auditor to protect the confidential information of the disclosing Party.

 (e) All payments to be made between the Parties pursuant to this Agreement shall be made in US Dollars unless otherwise
agreed. 
 Section 3.4 Disclaimer of Warranty. EXCEPT AS SET FORTH IN SECTIONS 2.1, 2.2 AND 2.7, AS APPLICABLE, THE
SERVICES AND THE CTI-PROVIDED SERVICES ARE PROVIDED UNDER THIS AGREEMENT ON AN AS-IS, WHERE-IS BASIS, WITHOUT WARRANTY OF ANY KIND, EXPRESS OR IMPLIED, INCLUDING ANY WARRANTY OF MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE. 

Section 3.5 Taxes. 
 (a) CTI shall pay to Comverse all applicable sales tax, value-added tax and/or goods and services tax as payable on the fees for the Services payable hereunder. Comverse shall pay to CTI all applicable
sales tax, value-added tax and/or goods and services tax as payable on the fees for the CTI-Provided Services payable hereunder. 
 (b) In addition to the fees required to be paid by CTI to Comverse for the Services provided hereunder, CTI shall remit to the appropriate tax authorities (the ”Tax Authorities”) any
taxes required to be withheld by law from any fees payable to Comverse hereunder. CTI shall submit to Comverse evidence of payment of any such withholding tax to the Tax Authorities. In the event that Comverse receives any credit, deduction or
refund of such withholding tax from the Tax Authorities, it shall (i) promptly provide a copy of the certificate from the Tax Authorities showing the receipt of such credit, deduction or refund and (ii) provide CTI a credit for such amount
against future fees payable by CTI to Comverse. 
 (c) In addition to the fees required to be paid by Comverse to CTI for the
CTI-Provided Services provided hereunder, Comverse shall remit to the Tax Authorities any taxes required to be withheld by law from any fees payable to CTI hereunder. Comverse shall submit to CTI evidence of payment of any such withholding tax to
the Tax Authorities. In the event that CTI receives any credit, deduction or refund of such withholding tax from the Tax Authorities, it shall (i) promptly provide a copy of the certificate from the Tax Authorities showing the receipt of such
credit, deduction or refund and (ii) provide Comverse a credit for such amount against future fees payable by Comverse to CTI. 
 ARTICLE IV 
 TERM; TERMINATION 

Section 4.1 Term. This Agreement shall commence on the Effective Date and shall continue until: (a) with respect to
“Finance & Accounting”, “Internal Audit and SOX”, “Tax Filings”, “ and “Financial Reporting” Services (in each case as set forth in Schedule A), until such

  
 11 

 
time as CTI fully complies with any and all legal obligations applicable to it, its business, its assets and any of its operations prior to the Effective Time, including until the expiration of
the Statute of Limitations (as defined in the Tax Disaffiliation Agreement) (including any waivers or extensions thereof) of CTI’s taxable periods or as otherwise necessary to comply with any SEC reporting obligations; (b) with respect to
those Services other than those referred to in Section 4.1(a), the date three (3) years after the Merger Effective Date (unless otherwise required in order to render any of the Services referenced in Section 4.1(a));
provided, however, that if the Merger Agreement is terminated in accordance with its terms and the Merger is not consummated, the term for the Services referenced in this clause (b) shall be deemed to be three
(3) years after the Effective Date; and (c) the date on which (i) the provision of all of the Services and the CTI-Provided Services have been terminated pursuant to Section 4.2(a), and Section 4.2(b) or
(ii) this Agreement shall have been terminated in accordance with Section 4.2(c) or Section 4.4(b). 
 Section 4.2 Termination for Reasons other than Default. 
 (a) Comverse
shall have the right, at any time, to terminate any or all of the CTI-Provided Services by giving CTI thirty (30) days prior written notice of such termination. 
 (b) CTI shall have the right, at any time, to terminate any or all of the Services by giving Comverse thirty (30) days prior written notice of such termination. 

(c) CTI shall have the right, at any time, to terminate this Agreement or any or all of the CTI-Provided Services by giving Comverse five
(5) business days prior notice of such termination, in each case with the effective date of such termination being a date that CTI determines in good faith to be the date that CTI plans (i) to sell all or substantially all of the
properties and assets of CTI, (ii) to sell a majority of the voting stock of CTI, or (iii) to merge with any other entity. 
 Section 4.3 Event of Default. A Party shall be in default hereunder if (a) with respect to Comverse, Comverse commits a material breach of any term of this Agreement (which shall include
Comverse’s failure to provide any of the Services) and such breach continues uncured for thirty (30) days following receipt of written notice thereof from CTI describing such breach in reasonable detail, (b) with respect to CTI, CTI
fails to pay to Comverse any fee payable by CTI to Comverse (other than any fees that CTI has disputed in good faith) for more than sixty (60) days after receipt of written notice of such nonpayment from Comverse describing such fee (and the
basis therefor) in reasonable detail, (c) in accordance with and subject to the terms hereof, such Party makes a general assignment for the benefit of its creditors, (d) there is a filing seeking an order for relief in respect of such
Party in an involuntary case under any applicable bankruptcy, insolvency or other similar law and such case remains undismissed for thirty (30) days or more, (e) a trustee or receiver is appointed for such Party or its assets or any
substantial part thereof or (f) such Party files a voluntary petition under any bankruptcy, insolvency or similar law of the relief of debtors (in each case, a “Default”). 

  
 12 

 Section 4.4 Remedies. 

(a) If there is any Default by CTI hereunder, Comverse may exercise any or all of the following remedies until such time that CTI cures
such Default: declare immediately due and payable all fees and expenses which CTI is obligated to pay pursuant to Section 3.1 with respect to the Service for which CTI has not paid hereunder when due (other than disputed fees).

 (b) If there is any Default by Comverse hereunder, CTI may (i) terminate this Agreement and recover any fees paid in
advance for the Services not performed or (ii) sue for specific performance. 
 (c) In addition to the remedies set forth
in clauses (a) and (b) above, a non-defaulting Party shall have all other remedies available at law or equity, subject to Article VI. 
 Section 4.5 Books and Records. Comverse will provide access to CTI to all books and records related to CTI and the Services at all reasonable times upon notice to Comverse. Upon the expiration or
termination of a Service or Services with respect to which Comverse holds books, records or files, including, but not limited to, current and archived copies of computer files, owned by CTI and used by Comverse in connection with the provision of a
Service to CTI, Comverse will return all such books, records or files as soon as reasonably practicable. At its expense, Comverse may make a copy of such books, records or files for its legal files. In the event Comverse needs access to such books,
records or files for legal or tax reasons, CTI shall cooperate with Comverse to make such books, records or files available to Comverse at Comverse’s expense. 
 Section 4.6 Effect of Expiration/Termination. Sections 2.1(c), 2.5, 4.4, 4.5, 4.6, 4.7, 5.1, 5.2(b), 5.2(c), 5.3, Article
VI and Article VII shall survive any expiration or termination of this Agreement. 
 Section 4.7 Obligations Post
Expiration/Termination. 
 (a) The expiration or termination of this Agreement shall not terminate either Party’s
obligation to provide to the other Party all information required by such other Party (including performing the applicable actions set forth in this Section 4.7) if and when necessary in order to present such other Party’s financial
and accounting information in accordance with generally accepted accounting principles or otherwise in order for such other Party to comply with applicable laws, rules and regulations. 

(b) Each of the Parties agrees to (i) furnish to the other Party such further information, (ii) execute and deliver to the
other Party such other documents and (iii) do such other acts and things, all as the other Party may reasonably request in order to permit it to file all state income tax returns required by law to be filed by it. 

  
 13 

 ARTICLE V 
 CERTAIN OTHER COVENANTS 
 Section 5.1 Confidentiality. Each of the
Parties agrees that any confidential information of the other Party received in the course of performance under this Agreement shall be kept strictly confidential in accordance with Section 4.4 of the Distribution Agreement. 

Section 5.2 Access to Certain Information. 
 (a) CTI shall make available on a timely basis to Comverse all information reasonably requested by Comverse to enable it to provide the Services. CTI shall give Comverse reasonable access, during regular
business hours and at such other times as are reasonably required, to its premises for the purposes of providing the Services. 

(b) Upon the reasonable request of one Party to the other, the recipient Party of such request shall make available or cause to be
provided on a timely basis to the requesting Party all records, reports, and other information reasonably requested to enable the requesting Party (i) to evaluate and satisfy any obligation (or claimed obligation) of the requesting Party to
make payment to any requesting Party employee or any third party, (ii) for use in any judicial, regulatory, administrative or other proceeding or in order to satisfy audit, accounting, claims, regulatory, litigation or other similar legal or
regulatory requirements, (iii) to comply with reporting, disclosure, filing or other requirements imposed on a Party (including under applicable securities and tax laws) by a governmental authority having jurisdiction over such Party;
provided, however, that in the event that the recipient Party of such request determines that any such provision of information could be commercially detrimental, violate any law or agreement, or waive any attorney-client privilege,
the Parties shall take all reasonable measures to permit the compliance with such obligations in a manner that avoids any such harm or consequence. Each Party shall give the other Party making such a request pursuant to this Section 5.2
reasonable access, during regular business hours and at such other times as are reasonably required, to its premises for the purposes of providing the applicable records, reports, and information. 

(c) Without limiting the generality of the foregoing, Comverse shall promptly respond in full to any CTI request for information to
enable any of (i) CTI and its affiliates to meet its timetable for dissemination of its earnings releases, financial statements, periodic reports, and management’s assessment of the effectiveness of its disclosure controls and procedures
and its internal control over financial reporting in accordance with Items 307 and 308, respectively, of Regulation S-K, and (ii) CTI’s accountants to timely complete their review of CTI’s quarterly financial statements and audit of
the annual financial statements, including, to the extent applicable, its auditor’s audit of its internal control over financial reporting and management’s assessment thereof in accordance with Section 404 of the Sarbanes-Oxley Act of
2002 and the SEC’s and Public Company Accounting Oversight Board’s rules and auditing standards thereunder, in each of clause (i) and (ii), with respect to the end of any fiscal quarter or year or portion thereof.

 Section 5.3 Title to Data. CTI acknowledges that it will acquire no right, title or interest (including any license
rights or rights of use) in any firmware or software, and any licenses therefor which are owned by Comverse, by reason of Comverse’s provision of the 

  
 14 

 
Services under this Agreement, except to the extent CTI’s payment of any incremental license fees or one-time consent fees pursuant to Section 3.1(a) result in the acquisition of
software license rights that may be assigned to CTI, in which case, Comverse will assign such software license rights to CTI at CTI’s request. Comverse acknowledges that it will acquire no right, title or interest (including any license rights
or rights of use) in any firmware or software, and any licenses therefor which are owned by CTI, by reason of CTI’s provision of the CTI-Provided Services under this Agreement except to the extent Comverse’s payment of any incremental
license fees or one-time consent fees pursuant to Section 3.1(b) result in the acquisition of software license rights that may be assigned to Comverse, in which case, CTI will assign such software license rights to Comverse at
Comverse’s request. Comverse agrees that all records, data, files, input materials and other information computed by Comverse for the benefit of CTI and which relate to the provision of the Services are the property of CTI. 

Section 5.4 Compliance with Laws. Each of Comverse and CTI shall comply in all material respects with any and all applicable
statutes, rules, regulations, orders or restrictions of any domestic or foreign government, or instrumentality or agency thereof, in respect of the conduct of its obligations under this Agreement. 

ARTICLE VI 

LIABILITIES 
 Section 6.1 Limitation of Liability. 
  

	 	(a)	For the avoidance of doubt, in this Article VI, a reference to: 

 

	 	(i)	a Party shall include that Party and its respective subsidiaries; 

  

	 	(ii)	a reference to CTI shall include CTI and each of the CTI Indemnitees and any contractors retained by CTI; and 

 

	 	(iii)	a reference to Comverse shall include each of the Comverse Indemnitees and any contractors retained by Comverse. 

(b) Any provision of this Article VI that is expressed to limit or exclude the liability of a Party for any loss or damage:

  

	 	(i)	is subject to Section 6.1(f) and Section 6.1(g); and 

 

	 	(ii)	applies whether the liability is a liability for breach of contract, tort (including negligence), misrepresentation (but not fraudulent misrepresentation), breach of
statutory duty or otherwise. 

 (c) Subject to Section 6.1(g), the only liability of the Parties for
breach of contract shall be for direct damages (also known as “general damages”) and, to the extent applicable, punitive damages. Liability for breach of contract for all other losses, including consequential damages (also known as
“special damages,” “indirect damages” and “incidental damages”), including loss of profits, is expressly excluded. 

  
 15 

 (d) CTI’s liability to Comverse in respect of any cause of action that arises under or
in connection with this Agreement, but to which Section 6.1(g) does not apply, shall be limited to: 
  

	 	(i)	the aggregate costs and expenses paid and payable by Comverse in respect of the CTI-Provided Services provided under this Agreement (as set forth in
Section 3.1(b)) in the six (6) calendar months preceding the calendar month in which that cause of action arose; minus 

  

	 	(ii)	CTI’s aggregate liability to Comverse in respect of all such prior causes of action. 

(e) Comverse’s liability to CTI in respect of any cause of action that arises under or in connection with this Agreement, but to
which Section 6.1(f) or Section 6.1(g) does not apply, shall be limited to: 
  

	 	(i)	the greater of: 

  

	 	(A)	$1,255,176.00; and 

  

	 	(B)	the aggregate fees, costs and expenses paid and payable by CTI in respect of the Services provided under this Agreement (as set forth in Section 3.1(a)) in
the two (2) calendar quarters preceding the calendar quarter in which that cause of action arose; minus 

  

	 	(ii)	Comverse’s aggregate liability to CTI in respect of all such prior causes of action. 

(f) Comverse’s liability to CTI in respect of any cause of action that arises under or in connection with this Agreement as a result
of Comverse’s failure to take Appropriate Actions when performing the Services or fulfilling any of its other obligations set forth in this Agreement, but to which Section 6.1(g) does not apply, shall be limited to: 

 

	 	(i)	the greater of: 

  

	 	(A)	$2,510,352.00; and 

  

	 	(B)	the aggregate fees, costs and expenses paid and payable by CTI in respect of the Services provided under this Agreement (as set forth in Section 3.1(a)) in
the four (4) calendar quarters preceding the calendar quarter in which that cause of action arose; minus 

  

	 	(ii)	Comverse’s aggregate liability to CTI in respect of all such prior causes of action. 

  
 16 

 (g) The limitations on liability set out in Section 6.1(d),
Section 6.1(e) and Section 6.1(f) and the restriction on recovering certain loss or damage in Section 6.1(c) do not apply to: 
  

	 	(i)	the breach by Comverse of its obligations set forth in Section 2.1(d) (Nondiscrimination) or Section 2.1(e) (Compliance with Data
Protection Laws); 

  

	 	(ii)	the breach by either Party of its respective obligations contained in Section 5.1 (Confidentiality); 

 

	 	(iii)	the breach by Comverse of its obligations set forth in this Agreement where such breach results in any failure by CTI to comply in all material respects with its legal
obligations, including CTI’s obligations to file accurate Tax Returns and to make certain filings with the SEC; 

  

	 	(iv)	the obligations of Comverse to indemnify CTI under this Agreement; 

  

	 	(v)	the obligations of the applicable Party to pay certain services fees and to reimburse certain costs and expenses to the other Party, in each case in the amount
calculated in accordance with Section 3.1; 

  

	 	(vi)	liability arising from the reduction or intentional cessation by Comverse, except if expressly permitted under this Agreement, of the performance of all or a material
portion of the Services then required to be provided by Comverse under this Agreement; 

  

	 	(vii)	liability arising from the gross negligence, willful misconduct or fraud of either Party or its affiliates; and 

 

	 	(viii)	punitive damages that a Party has been ordered to pay by any court of competent jurisdiction. 

(h) The invalidity, illegality or unenforceability of a provision of this Section 6.1 does not affect or impair the
continuation in force of the remainder of this Section 6.1 or this Agreement. 
 (i) The Parties agree that this
provision limiting remedies and liquidating damages is reasonable under the circumstances and Comverse acknowledges that CTI shall have no other financial liability to Comverse whatsoever. 

  
 17 

 Section 6.2 Indemnification. Comverse shall indemnify, defend and hold harmless the
CTI Indemnitees from and against any and all liabilities, claims, damages, losses and expenses (including, but not limited to, court costs and reasonable attorneys’ fees) of any kind or nature (“Losses and Expenses”), related
to, arising out of or in connection with any or all of the following: 
 (a) any third party claim brought against CTI alleging
that the Services, Comverse’s performance of the Services, or the use of any asset in connection with the Services for the benefit of CTI infringes upon any patent, copyright, trademark, trade secret or other intellectual property right of any
third party; 
 (b) any third party claim brought against CTI alleging that the CTI-Provided Services, CTI’s performance of
the CTI-Provided Services, or the use of any asset in connection with the CTI-Provided Services for the benefit of Comverse infringes upon any patent, copyright, trademark, trade secret or other intellectual property right of any third party;

 (c) the breach by Comverse of its obligations set forth in this Agreement where such breach results in any failure by CTI to
comply in all material respects with its legal obligations, including CTI’s obligations to file accurate Tax Returns and to make certain filings with the SEC; 
 (d) the breach by Comverse of Section 2.1(e) (Compliance with Data Protection Laws); and 
 (e) the breach by Comverse of Section 5.1 (Confidentiality); 
 provided,
however, that CTI shall not be indemnified by Comverse solely to the extent any Loss or Expense resulted from CTI’s gross negligence, willful misconduct, or fraud. Indemnification of any claim hereunder shall be governed by the
definitions and procedures set forth in Section 3.3 of the Distribution Agreement. Payment shall be made in accordance with the provisions of Section 3.4 of the Distribution Agreement. 

ARTICLE VII 

MISCELLANEOUS 
 Section 7.1 Notice. All notices and other communications hereunder shall be in writing, shall reference this Agreement and shall be hand delivered or mailed by registered or certified mail (return
receipt requested) to the Parties at the following addresses (or at such other addresses for a Party as shall be specified by like notice) and will be deemed given on the date on which such notice is received: 

To CTI: 
 Comverse Technology, Inc. 
 810 Seventh Avenue 

New York, NY 10019 
 Attention: General Counsel 
 To Comverse: 

Comverse, Inc. 
 810 Seventh Avenue 
 New York, NY 10019 

Attention: General Counsel 

  
 18 

 Section 7.2 Force Majeure. A Party shall not be deemed to have breached this
Agreement to the extent that performance of its obligations or attempts to cure any breach are made impossible or impracticable due to any act of God, fire, natural disaster, act of terror, act of government, shortage of materials or supplies after
the Effective Date, labor disputes or any other cause beyond the reasonable control of such Party (a “Force Majeure”); provided, however, that in no event will the voluntary termination of any employee’s
employment be deemed to be a Force Majeure. The Party whose performance is delayed or prevented shall (a) promptly notify the other Party of the Force Majeure cause of such prevention or delay and (b) take Appropriate Actions to recommence
such disrupted Party’s performance of its obligations under this Agreement. 
 Section 7.3 Independent Contractors.
The Parties shall operate as, and have the status of, independent contractors and neither Party shall act as or be a partner, co-venturer or employee of the other Party. Unless specifically authorized to do so in writing, neither Party shall have
any right or authority to assume or create any obligations or to make any representations or warranties on behalf of the other Party, whether express or implied, or to bind the other Party in any respect whatsoever. 

Section 7.4 Amendment; Waivers. No amendment, modification or discharge of this Agreement, and no waiver hereunder, shall be valid
or binding unless set forth in writing and duly executed by the Party against whom enforcement of the amendment, modification, discharge or waiver is sought. Any such waiver shall constitute a waiver only with respect to the specific matter
described in such writing and shall in no way impair the rights of the Party granting such waiver in any other respect or at any other time. 
 Section 7.5 Assignment; Successors and Assigns. 
 (a) This Agreement shall
not be assignable, in whole or in part, directly or indirectly, by any Party without the prior written consent of the other Party, and any attempt to assign any rights or obligations arising under this Agreement without such consent shall be void;
provided, however, that CTI may assign this Agreement to (i) a purchaser of all or substantially all of the properties and assets of CTI; (ii) a purchaser of a majority of the voting stock of CTI, or (iii) an entity with
which CTI merges, in each case so long as such purchaser or the entity surviving such merger expressly assumes, in a written instrument in form reasonably satisfactory to Comverse, CTI’s obligations and liabilities under this Agreement.

 (b) The provisions to this Agreement shall be binding upon, inure to the benefit of and be enforceable by the Parties and
their respective successors and permitted assigns. 

  
 19 

 Section 7.6 Titles and Headings. Titles and headings to Sections herein are inserted
for convenience of reference only and are not intended to be a part of or to affect the meaning or interpretation of this Agreement. 
 Section 7.7 Complete Agreement; Construction. This Agreement, including Schedule A and Schedule B shall constitute the entire agreement between the Parties with respect to the
subject matter hereof and shall supersede all previous negotiations, commitments and writings with respect to such subject matter. In the event of any inconsistency between this Agreement and any Schedule, this Agreement shall prevail. In the event
of any inconsistency between this Agreement (including any Schedule hereto) and the Tax Disaffiliation Agreement, the Tax Disaffiliation Agreement shall prevail. 
 Section 7.8 Schedules. The Schedules shall be construed with and as an integral part of this Agreement to the same extent as if the same had been set forth verbatim herein. 

Section 7.9 Counterparts. This Agreement may be executed in one or more counterparts, all of which shall be considered one and the
same agreement, and shall become effective when one or more such counterparts have been signed by each of the Parties and delivered to the other Party. 
 Section 7.10 Governing Law and Jurisdiction; Waiver of Trial by Jury. 
 (a)
THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK APPLICABLE TO CONTRACTS MADE AND TO BE PERFORMED IN THE STATE OF NEW YORK, IN EACH CASE WITHOUT GIVING EFFECT TO THE PRINCIPLES REGARDING
CONFLICTS OF LAWS THAT WOULD RESULT IN THE APPLICATION OF THE LAWS OF ANY OTHER JURISDICTION. Each Party consents to the exclusive jurisdiction of, and service of process by, the United States District Court for the Southern District of New York or
the state courts of the State of New York, Borough of Manhattan, with respect to any proceeding by a Party arising out of this Agreement. The Parties further agree that the mailing by certified or registered mail, return receipt requested, of any
process required by any such court will constitute valid and lawful service of process against them, without necessity for service by any other means provided by statute or rule of court. 

(b) EACH PARTY ACKNOWLEDGES AND AGREES THAT ANY CONTROVERSY WHICH MAY ARISE UNDER THIS AGREEMENT IS LIKELY TO INVOLVE COMPLICATED AND
DIFFICULT ISSUES, AND THEREFORE IT HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT AND ANY OF THE AGREEMENTS
DELIVERED IN CONNECTION HEREWITH OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY. EACH PARTY CERTIFIES AND ACKNOWLEDGES THAT (I) NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER
PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE EITHER OF SUCH WAIVERS, (II) IT UNDERSTANDS AND HAS CONSIDERED THE 

  
 20 

 
IMPLICATIONS OF SUCH WAIVERS, (III) IT MAKES SUCH WAIVERS VOLUNTARILY, AND (IV) IT HAS BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND
CERTIFICATIONS IN THIS SECTION 7.10(b). 
 Section 7.11 Specific Performance. In the event of any actual or
threatened default in, or breach of, any of the terms, conditions and provisions of this Agreement, the Parties agree that the Party to this Agreement who is or is to be thereby aggrieved shall have the right to specific performance and injunctive
or other equitable relief of its rights under this Agreement, in addition to any and all other rights and remedies at law or in equity, and all such rights and remedies shall be cumulative. The Parties agree that the remedies at law for any breach
or threatened breach of this Agreement, including monetary damages, are inadequate compensation for any loss, that any defense in any action for specific performance that a remedy at law would be adequate is hereby waived, and that any requirements
for the securing or posting of any bond with such remedy are hereby waived. 
 Section 7.12 Time is of the Essence. Time
is of the essence with respect to all time periods set forth herein. 
 Section 7.13 No Third Party Beneficiaries. This
Agreement is solely for the benefit of the Parties and their respective subsidiaries and affiliates and shall not be deemed to confer upon any other Person any remedy, claim, liability, reimbursement, cause of action or other right in excess of
those existing without reference to this Agreement. 
 Section 7.14 Severability. In the event any one or more of the
provisions contained in this Agreement should be held invalid, illegal or unenforceable in any respect, the validity, legality and enforceability of the remaining provisions contained herein and therein shall not in any way be affected or impaired
thereby. The Parties shall endeavor in good faith negotiations to replace the invalid, illegal or unenforceable provisions with valid provisions, the economic effect of which comes as close as possible to that of the invalid, illegal or
unenforceable provisions. 
 [signature page follows] 

  
 21 

 IN WITNESS WHEREOF, the Parties have caused this Agreement to be duly executed as of the day
and year first above written. 
  

			
	COMVERSE TECHNOLOGY, INC.
		
	By:	 	/s/ Shefali Shah
	Name:	 	Shefali Shah
	Title:	 	Senior Vice President, General Counsel and
		 	Corporate Secretary

  

			
	COMVERSE, INC.
		
	By:	 	/s/ Thomas B. Sabol
	Name:	 	Thomas B. Sabol
	Title:	 	Chief Financial Officer

 [Signature Page to Transition Services Agreement] 

 Schedule A 
 Services and Fees 
  

					
	 Service Category
	  	 Description of Services
	  	 Fixed Annual Fee

	 Payroll

	  	 •   Calculation of employee payroll

 
 •   Bi-weekly salary
distribution to CTI employees
  

•   Timely calculation of all taxes to be withheld from paychecks, garnishments, IRA
contributions, and other deductions and withholdings from paychecks, and the proper withholding and, as applicable, transfer of such amounts
	  	$2,293
			
	 Time & Expense
	  	 •   Provision of and support for use of corporate credit and/or debit
cards by CTI employees
  

•   Support and operation of reimbursements and other related services (e.g., Transfer
Transit Deduction program, etc.)
	  	$8,400
			
	 Health and Welfare Plans
	  	 •   Provision of CNS health and welfare plans to remaining CTI employees
	  	$30,000

					
	 Finance & Accounting
	  	 •      Calculation of costs incurred pursuant to
Comverse’s provision of Services to CTI
  
 •      Quarterly submission of invoices of such fees incurred by Comverse to CTI
  

•      Administration of payables and receivables accounts and daily
monitoring of payables and receivables to produce receivables log on a daily basis
  
 •      Support and operation of data gathering, financial closing, and reporting required to complete SEC external reporting and audits

 

•      Provision of stock plan administration support as needed (e.g.,
tracking continuing vesting of grants)
	  	$717,800
			
	 Financial Reporting
	  	 •      Provision of financial reporting support as needed, including legal support and
preparation of periodic reports to be filed with the SEC
	  	$206,300
			
	 Internal Audit 
and SOX
	  	 •      Support and operation of internal audit and internal controls (SOX) designed to meet
both CTI internal audit and SEC requirements, including the Financial Requirements
	  	$360,000
			
	 Tax Filings
	  	 •      Timely preparation and submission of requisite Tax
Returns, including as applicable federal, state, local and international filings. For the avoidance of doubt, the Services shall include the filing of all Tax Returns relating to the Straddle Period

 

•      Subject to the terms of this Agreement, with respect to all material
Tax Returns for the taxable years ending 01/31/2012 and 01/31/2013 (or such other date on which the taxable period ends, in the case of a short taxable period) Comverse shall engage a Big Four Accounting Firm to review and sign as tax preparer each
such Tax Return
	  	$39,675

  
 - 3 -

					
	 Treasury
	  	 •      Timely payment of accounts payable and collection
of accounts receivables
  

•      Support and operation of bank account management including signatory
updates, cash (working capital) management, cash planning, and reporting
	  	$59,500
			
	 Insurance
	  	 •      If required, provide access to and negotiation support for D&O insurance in the
event transition period extends beyond coverage period of the tail or requires amendment for other reasons
	  	$59,500
			
	 Information Technology
	  	 •      Provision and maintenance of hotline, telephone
services, and CTI website
  

•      Provision and operation of infrastructure (e.g., servers, networks,
etc.)
  

•      Technical maintenance and support

 

•      Data storage and backup

 

•      Disaster recovery

 

•      Use by each CTI employee of computers, email service, internet service,
hardware, and software, in each case equivalent to such IT equipment and software used by any CTI employee immediately prior to the Effective Date
	  	$137,946

  
 - 4 -

					
	 Operational Services
	  	 •      Provision of gas and electric utilities

 

•      Provision of office space, including uninterrupted access to such
office space, in use by (or otherwise leased by or under the control of) CTI immediately prior to the Effective Date
  

•      Provision of office equipment, including computers, printers, copiers,
furniture (desks, chairs, etc.), and food & beverage services (coffee machine, water machine, vending services, etc.)
  

•      Provision of documentation support required to terminate the lease
contract of the CTI headquarters office, as needed
	  	$163,188
			
	 Legal
	  	 •      Provision of legal support as needed
	  	$455,750
			
	 Administration
	  	 •      Provision of administrative support as needed, including support for
procurement
	  	$270,000

  
 - 5 -

 Schedule B 
 CTI-Provided Services 
  

			
	 Service Category
	  	 Description of CTI-Provided
Services

	 General Operational Support
	  	Continuation of executive-level support and oversight historically provided to Comverse by CTI employees, in each case only to provide executive oversight, to grant approvals and
to perform other duties required for filings. Does not include “Tax Filings” as listed in Schedule A.

  
 - 6 -

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00209-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00209-of-00352.parquet"}]]